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FERC Terminates Consideration of GHG Emissions in Natural Gas Infrastructure Project Reviews

By Sydney Novoa posted 16 days ago

  

On January 24, the Federal Energy Regulatory Commission (FERC) issued an order terminating its proceeding on the consideration of greenhouse gas (GHG) emissions in natural gas infrastructure project reviews. 

The order terminates Docket No. PL21-3, thus formally closing FERC’s review of GHG considerations in natural gas infrastructure approvals.  

In 2021, the proceeding sought to update FERC’s 1999 Certificate Policy Statement to incorporate GHG emissions into its “public interest” test under the Natural Gas Act (NGA). However, FERC determined that GHG impacts are best addressed on a case-by-case basis in individual proceedings. 

The decision follows the Commission’s 2022 policy statements, which proposed stricter GHG and environmental justice considerations. Recall, APGA expressed concern in response to these policy statements, emphasizing that the statements would significantly impact the ability of public gas systems to maintain low-cost energy access for their communities. The Interim GHG Policy Statement, which would have set emissions thresholds for pipeline and LNG projects, was never finalized.  

While the order was unanimous, Commissioner Phillips, Commissioner Rosner, and Commissioner Chang issued a concurrence emphasizing that federal courts still require FERC to consider GHG emissions under existing law. 

This order does not affect the draft Updated Certificate Policy Statement (PL18-1-000) that was originally issued concurrently with the GHG policy statement.  The draft certificate policy is still in an open docket and would update the current Certificate Policy Statement that was issued in 1999 if/when finalized.

To read the order, click here

APGA staff will continue to monitor and provide updates on the Commission’s orders and guidance affecting natural gas infrastructure. For questions on this article, please contact Sydney Novoa of APGA by phone at 202-464-0834 or email at snovoa@apga.org 

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