D.C. Circuit: FERC Must Consider Potential Pipeline Downstream GHG Effects

On August 22, the US Court of Appeals for the District of Columbia Circuit, in a 2-1 decision,¹ vacated and remanded orders of the Federal Energy Regulatory Commission (FERC) authorizing the construction and operation of three natural gas pipeline projects to serve Florida and southeastern markets² because FERC's environmental impact statement (EIS) issued in connection with FERC's environmental review of the pipelines did not contain enough information on greenhouse gas (GHG) emissions that will result from burning the natural gas carried by the pipeline projects.

The FERC pipeline decision represents a victory for environmental groups—in particular, the Sierra Club—that have in recent years opposed FERC authorization of pipeline facilities and LNG terminal facilities and Department of Energy (DOE) authorization of long-term, large scale exports of liquefied natural gas (LNG) on the ground that FERC and DOE have not adequately considered the effects of such