On February 17, 2022, the Federal Energy Regulatory Commission (FERC) adopted a new framework for reviewing natural gas infrastructure proposals, updating the previous framework set in 1999.[1] The new framework includes expanded criteria for deciding whether facilities are needed and potential economic and environmental impacts. Previously, FERC judged whether a pipeline was needed only by whether it had contracts for its supply. The Commission will now consider factors like demand projections and potential cost savings to customers. FERC also issued an interim policy statement outlining how it will consider greenhouse gas (GHG) emissions when reviewing natural gas projects. Under the interim policy, projects that will release at least 100,000 metric tons per year of GHG emissions will require an environmental impact statement instead of a less rigorous environmental assessment. The interim GHG policy framework takes effect immediately, including on pending projects. Comments on the policy are due on April 4, 2022.

The policies were approved along party lines, with the commission’s three Democratic members approving the policies and the two Republican members opposing them. The policy statements are partly in response to a series of court decisions that overturned some of FERC’s approvals of gas projects, such as Sabal Trail, Birckhead, Vecinos, and Spire Pipeline. Those court decisions cited the commission’s failure to consider several factors, including GHG emissions, whether the project was needed, and potential effects on environmental justice communities. The new policies are intended to improve the legal durability of the Commission’s decisions moving forward.

[1] https://www.ferc.gov/news-events/news/ferc-updates-policies-guide-natural-gas-project-certifications