FERC Shelves Gas Pipeline Policy Update, Signaling Shift in Energy Regulation
Washington D.C. – In a move that has sparked debate among energy experts, the Federal Energy Regulatory Commission (FERC) has officially halted its years-long effort too update its policy for evaluating proposed natural gas infrastructure projects. The decision, finalized Friday, effectively ends a process initiated in 2018 to modernize the agency’s framework – last revised in 1999 - for assessing the need for, and impact of, new pipelines and liquefied natural gas (LNG) facilities.
The move comes after a direct request from U.S. Department of Energy (DOE) Secretary Chris Wright on August 29th, who argued the ongoing rulemaking was creating uncertainty within the gas sector and urged FERC to reach a decision by September 30th.
This isn’t the first time FERC has walked back efforts to address the environmental and social impacts of gas infrastructure. In January 2017, shortly after president Trump’s inauguration, the agency rescinded a draft policy statement concerning the evaluation of a project’s climate change effects.
FERC initially issued updated policy statements in February 2022, but quickly designated them as drafts following criticism from lawmakers and stakeholders. These proposed policies where never implemented in the assessment of any pipeline or LNG proposals.
In its latest decision, FERC stated that the issues addressed in the draft policy statement are better suited for evaluation on a case-by-case basis.”We believe that the 1999 Certificate Policy Statement, as later applied by the commission, continues to provide the appropriate framework for reviewing proposed natural gas projects in a legally durable manner,” the agency saeid in a unanimous statement.
