On February 17, the Federal Energy Regulatory Commission (FERC or Commission) announced two new, significant policies that may have a profound impact on both natural gas pipeline projects before the Commission and the industry in general. Headlining these policies is FERC’s new interim greenhouse gas (GHG) policy statement (Interim GHG Policy Statement), pursuant to which FERC will presume any gas project with 100,000 metric tons per year of carbon dioxide equivalents (CO2e) emissions to have a significant impact on climate change and will trigger the preparation of an Environmental Impact Statement (EIS). Notwithstanding the interim nature of FERC’s new Interim GHG Policy Statement – where FERC is accepting comments by April 4, 2022 – FERC clarified that it will apply both policies to all pending and new project applications, effective immediately.
Continue Reading FERC Overhauls Existing Pipeline Project Analysis, Creates Separate Interim GHG Policy for Gas Infrastructure Projects
FERC to Block LNG, Pipeline Project Construction Until After Rehearing Process is Complete
On June 9, 2020, FERC ordered amendments to its regulations to prohibit natural gas projects authorized under Sections 3 and 7 of the Natural Gas Act (“NGA”) from commencing construction activities until after (i) the deadline for filing a request for rehearing has lapsed without a request being filed, or (ii) FERC has acted upon the merits of any timely-filed request for rehearing (“Order No. 871”). The new regulation will become effective, without any opportunity to file comments, 30 days after the Final Rule is published in the Federal Register. Because FERC’s orders on rehearing sometimes take several months, and in some cases more than a year to be issued, both liquefied natural gas (“LNG”) and natural gas pipeline projects approved by FERC could be significantly delayed from commencing construction as a result of Order No. 871.
Continue Reading FERC to Block LNG, Pipeline Project Construction Until After Rehearing Process is Complete