Senator Barrasso presses FERC on authority to revisit gas pipeline certificates

New York — Senate Energy and Natural Resources Committee Ranking Member John Barrasso is questioning the Federal Energy Regulatory Commission about its authority to revisit final natural gas pipeline certificate orders in light of a recent decision that has sparked industry warnings of a threat to the finality needed for large infrastructure investments.

At issue is FERC's decision Feb. 18 to establishing a paper briefing in response to a request for rehearing of its decision allowing the start of service for the Weymouth Gas Compressor, a final part of the Algonquin Gas Transmission and Maritimes & Northeast Pipeline's Atlantic Bridge Project. The project is already flowing gas, but the commission noted it had "received numerous pleadings expressing concerns about public safety and air emissions impacts from the station's continued operation."

In its 3-2 order (CP16-9-012), FERC asked for briefs on whether the facility should remain in service, whether FERC should reconsider the current operation in light of changed circumstances, as well as whether it should impose any additional mitigation measures in light of air emissions or public safety concerns.

In a letter March 30, Barrasso, a Republican from Wyoming, urged Chairman Richard Glick and other commissioners to address what statutory authority FERC might have to revisit final certificate orders, what authority it might have to order added mitigation after a final certificate has issued, as well as for examples of changed circumstances that would prompt the opening of a new proceeding.

Barrasso said his concern was heightened by the North American Electric Reliability Corp.'s March 11 Senate testimony identifying risks to gas fuel supplies during extreme winter conditions in New England.

"Has FERC undertaken an analysis on the impacts to reliability and affordability of natural gas and electric service or the impacts to jobs if pipeline projects the commission has found to be necessary can be collaterally attacked after the commission has issued a certificate for such projects?" he asked.

Flood of feedback

Among a handful of actions suggesting FERC may take a more restrictive approach to pipelines under Democratic leadership, the Weymouth decision has generated the most outcry from gas industry advocates.

The Natural Gas Supply Association and the Center for Liquefied Natural Gas, in a recent motion to intervene, said that "just the issuance of the briefing order itself signifies that the commission is willing to revoke a settled and judicially final certificate issued over four years ago."

And the Interstate Natural Gas Association of America questioned FERC's authority to reconsider or revoke a final certificate.

Barrasso's letter appeared to echo those concerns.

Upon issuing the order, Glick in February said the additional comments would help supplement the record to enable FERC to ensure its actions are consistent with the public interest, while Commissioner James Danly warned the order threatened the stability of the commission's permit process. Commissioner Neil Chatterjee said the order simply asked for briefings to gather information on the unique circumstances posed by this proceeding, and stressed that he did not support reopening certificate orders.

The FERC briefing order has drawn a flood of motions to intervene from industry, environmental nonprofits and government entities such as the Massachusetts attorney general. Initial briefs are due April 2.

The Weymouth Town Council welcomed the new briefing, in a letter posted to FERC's website March 26, reiterating its concerns about safety in light of two unplanned gas releases at the station in September, prior to the compressor being operational.

Town Council President Arthur Mathews said a safety plan was finally made available to the town council October 26, after FERC issued the in-service authorization on Sept. 24. The council also worried there was no official safety plan for residents of neighboring communities outside the town borders, despite the compressor sitting on the border of two other towns.

Groups that sought rehearing and rescission of FERC 's Sept. 24 authorization to commence service included Food & Water Watch and Fore River Residents Against the Compressor Station, along with Quincy, Massachusetts Councilor Rebecca Haugh.

They argued unplanned emergency shutdowns threatening public safety and environmental justice concerns exacerbated by the COVID-19 pandemic required FERC to complete a situational and strategic assessment. And they argued FERC had authority to reopen the record and must do so due to the change in core circumstances concerning project need, project safety and environmental justice concerns.

The Atlantic Bridge project was designed to boost gas transportation capacity on the Algonquin system by 132,705 Dt/d from receipt points in New York and New Jersey up to a delivery point north of Boston. The project also allows for northbound capacity on the Maritimes system from its interconnect with Algonquin in Beverly, Massachusetts, into Eastern Canada.

While the project capacity has been operating along a partial path since late 2019, the compressor had been hung up in state reviews and challenges for years.