Recent NEPA Cases May Create Uncertainty For LNG Project Sponsors

Two recent cases, Food & Water Watch et al. v. FERC, decided June 14, 2024, and Healthy Gulf et al. v. FERC, decided July 16, 2024, illustrate both consistencies and divergences in judicial approaches to the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) (NEPA) compliance and environmental impact assessments. Sponsors of liquid natural gas (LNG) and gas pipeline projects should monitor these and other NEPA-related decisions carefully, as they may impact project timing, cost, and likelihood of success.

Food & Water Watch v. FERC, 104 F.4th 336 (D.C. Cir. 2024)

In Food & Water Watch et al. v. FERC, the court addressed whether NEPA and Council on Environmental Quality (CEQ) regulations require the Federal Energy Regulatory Commission (FERC) to formally label greenhouse gas (GHG) emissions and their ensuing costs as either significant or insignificant in its Environmental Impact Statement (EIS). The court held, “NEPA and the CEQ regulation cited