Glick elevates equity issues at FERC, eyes consensus amid energy transition

Federal Energy Regulatory Commission Chairman Richard Glick is creating a new senior-level position to ensure environmental justice is better addressed, particularly in natural gas project siting.

But as he begins to set FERC's agenda, he suggested he doesn't intend to stand as a blockade to gas projects, even as he pursues action seen aiding the transition to a clean energy economy.

In a Feb. 11 briefing for reporters, Glick listed five top priorities: eliminating barriers to market participation for new technologies; supporting transmission buildout and expediting interconnection queues; accommodating state policies; improving gas infrastructure siting; and remaining vigilant to threats to the grid.

On FERC's gas project siting work, Glick said FERC's approach should be improved to ensure a project is both needed and in the public interest before getting the green light.

But he stressed his intent to work toward consensus, rather than blocking projects for long periods until he can alter the approach in orders or usher through changes to the 1999 pipeline certificate policy statement. And he said changes would require a majority vote.

"I don't think it's appropriate for any chairman to actually sit on orders if they don't agree with them for any lengthy period of time," he said, suggesting there might be times he would be forced to dissent.

While in the minority at FERC, Glick dissented at least in part on dozens of gas orders, many times pushing for greater consideration of climate impacts. On that topic, he said that even if FERC finds greenhouse gas impacts to be significant, it can still mitigate impacts or find a project's benefits outweigh the adverse impacts.

"I'm hopeful that we can work with our colleagues to develop a process that going forward [is] more consistent with where the [US Court of Appeals for the District of Columbia Circuit] has been on these issues," he said, referencing what he sees as the court's direction to FERC to examine reasonably foreseeable GHG emissions when determining whether a project is in the public interest.

Just where the DC Circuit drew the line has been disputed among commissioners the last several years.

Environmental justice

In announcing the senior-level environmental justice position, Glick said FERC should more aggressively fulfill its responsibilities to ensure decisions don't unfairly affect historically marginalized communities. That is especially true for siting pipeline and LNG facilities, but also needs to be considered in all of FERC's decision-making, he said.

"The person appointed to the senior position will work with our expert team and staff to ensure that our decisions across the agency reflect these important values and that historically marginalized communities' voices are heard and respected," he told reporters.

He suggested FERC would need to examine whether harmful pollutants are being emitted in areas with a heavy concentration of people that have borne the burden of such projects in the past. "Is there something we can do to mitigate that? Should the project be moved, should the project be mitigated with pollution controls?" he asked.

Energy transition

While making clear that FERC is an independent agency and not beholden to the White House, Glick was optimistic that President Joe Biden's goal of 100% carbon-free electricity by 2035 could be achieved.

"I've been involved for a long time on electricity issues, and I always see people say, 'it can never be done,' whenever someone sets a target, and then we're always exceeding those targets," he said.

FERC's role in the energy transition is not to make resource decisions, as the Federal Power Act leaves that to the states, but to make sure that the markets work, Glick said.

Thus, he aims to ensure wholesale power market rules do not discriminate against new technologies. While acknowledging FERC's progress in this area on energy storage and distributed energy resources, he said "there is more to be done with regard to other technologies."

Glick also planned to "pursue approaches to accommodate state resource decision making, rather than using wholesale market rules to block those state programs."

He has opposed minimum offer price rules and similar mechanisms imposed on the Eastern regional transmission organizations that administratively raise the bids of resources receiving state subsidies.

"I think there's a recognition that the MOPR process, in general, is just not sustainable," Glick said. "I think [the grid operators] are taking a look at revising their particular approaches to capacity markets and state public policies," and FERC can hopefully facilitate a better process.

Grid buildout

FERC also should be cognizant of "the fact that there is going to be a lot more demand for electricity with both electrification and demand for cleaner resources," Glick said.

With that in mind, he said FERC must advance "policies that will hopefully promote a greater investment in the transmission grid to facilitate access to cleaner resources."

He suggested that reforms to Order 1000, the commission's regional transmission planning and cost allocation rule, and FERC's work on a pending proposal on transmission rate incentives could help spur investment in long-haul transmission lines.