Senators press FERC for action on pending gas projects, without policy shifts

Twenty-five US senators wrote the Federal Energy Regulatory Commission to urge that it act promptly on pending natural gas pipeline projects, warning against further delay or adding new policy considerations into the decisions on those projects.

The pressure from senators comes as FERC action on a handful of pending gas project certificates appears to have slowed as the commission works through differences such as how to address greenhouse gas emissions of projects under new leadership.

Roughly 10 projects received FERC environmental reports in 2020 and are awaiting a decision on certificate orders.

FERC Chairman Richard Glick has previously indicated he does not intend to hold up projects, however, while the commission considers broader changes to its 1999 natural gas certificate policy. The commission in February sought updated input on topics such as how FERC should address climate change and environmental justice in its gas project reviews.

The April 29 letter from senators, led by John Hoeven, Republican-North Dakota, urged FERC to "take action without further delay, consistent with its current policy statement, on the natural gas infrastructure projects that are currently pending before the commission."

While a wave of larger production takeaway projects gained FERC approval in prior years, a steady queue of mostly smaller or regionally focused projects is undergoing FERC review.

'Regulatory goalposts'

The senators wrote that many of the proposed projects before the commission, some pending for more than a year, are "critical to addressing supply issues and strengthening our energy infrastructure."

"Delaying and moving the regulatory goalposts on projects filed in good faith is contrary to the otherwise equitable application of the policy statement that all stakeholders expect," they wrote. "At a minimum, these projects should not be subject to newly contemplated considerations that fall outside the scope of the current policy statement or go beyond the commission's statutory authority," they added.

The senators writing were mostly Republicans, but two Democrats signing on included Senate Energy and Natural Resources Chairman Joe Manchin of West Virginia, and Kyrsten Sinema of Arizona.

The Interstate Natural Gas Association of America welcomed the effort, saying it has maintained that a predictable permitting process is "not a partisan issue."

"This bipartisan effort reinforces that belief and highlights how timely regulatory reviews for pending natural gas projects can deliver environmental and economic benefits while ensuring reliable energy for Americans across the nation," a spokeswoman for the group said in an email.

Among the sizable gas projects that received environmental reports from FERC last year but are still awaiting a decision are the 250 MMcf/d North Bakken Expansion project, the 495 MMcf/d North Baja XPress project, 1.65 Bcf/d Gulf Run and Line CP project, the PennEast 2020 amendment, the 2 Bcf/d Evangeline Pass Expansion, and the 125 MMcf/d Enhancement by Compression project.

Pending gas projects at FERC

*Deadline for other cooperating agencies

Source: FERC website

Under FERC's new composition, Republican Commissioner Neil Chatterjee recently joined with Glick and Democrat Allison Clements to support a finding that a Northern Natural Gas replacement project did not have significant climate impacts, in a compromise that allowed the project to advance. FERC had previously held to the position that it was not possible to assess the significance. Still to be seen is what compromise can be reached on projects with greater GHG emissions or how the commission will treat upstream and downstream emissions.

Republican Commissioner James Danly objected to the change in approach on climate, saying that including the action in a small pipeline order disregarded FERC's notice of inquiry that sought directly relevant comments on the pipeline certificate policy, and left the public and regulated community without discernible principles by which FERC intends to consider proposed projects.

As to the senators' inquiry, FERC Director of Media Relations Marcy O'Driscoll said Glick appreciated the senators' letter and plans to respond to them shortly.

"Addressing these questions for Congress and the public is a priority for the chairman, and he is working diligently to do so," she said in an email.