FERC Now To Consider Climate Change And Environmental Justice When Approving Natural Gas Facilities

The Federal Energy Regulatory Commission (FERC) has changed the standards it applies when approving a natural gas project. Going forward, FERC's approval framework will consider downstream environmental effects from the use of transported natural gas—including putative impacts on climate change and environmental justice communities. There are, however, legal questions regarding FERC's expanded view of its authority.

On February 18, 2022, FERC issued an Updated Policy Statement on Certification of New Interstate Natural Gas Facilities ("Updated Policy Statement"), concurrently with an interim policy statement on the Consideration of Greenhouse Gas Emissions in Natural Gas Infrastructure Project Reviews ("Greenhouse Gas Interim Policy Statement"). Under the Updated Policy Statement, FERC will weigh the adverse impacts on four key interests in determining whether the proposed project is in the public interest. For this first time, the public convenience and need