Released April 01, 2021 | SUGAR LAND
en
Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--In a March 18 decision, the Federal Energy Regulatory Commission (FERC) (Washington, D.C.) for the first time included a greenhouse gas (GHG) assessment in its review of a natural gas pipeline project. The project at hand was Northern Natural Gas' request to replace an 87-mile natural gas pipeline. Northern Natural Gas (Omaha, Nebraska) is a subsidiary of Berkshire Hathaway Incorporated (NYSE:BRK.A) (Omaha, Nebraska).
The FERC vote was 3-2, with Republican Commissioner Neil Chatterjee joining FERC's two Democratic commissioners. Chatterjee had been chairman of the commission until late last year, when he was demoted by then-President Donald Trump, who feared Chatterjee might be amenable to regulating greenhouse gas emissions.
Although the decision was narrowly focused on Northern Natural Gas' request to replace the A-Line, an aging 87.3-mile natural gas pipeline in the Midwest, the commission separately is conducting a broader inquiry into certification of new interstate natural gas pipelines. That inquiry could lead to a policy statement that the commission should include GHG assessments in its consideration of future interstate natural gas pipelines.
Under the Trump administration, the Republican majority at FERC opposed conducting GHG assessments on proposed oil or gas pipelines. Federal courts have criticized FERC's unwillingness to conduct those assessments. The election of President Joe Biden may signal a change in the agency's stance. Although Democrats currently are in the minority at FERC, Biden appointed Glick chair of the body upon his election as president.
In President Biden's flurry of "Day One" executive orders, he issued one, on "Tackling the Climate Crisis at Home and Abroad," that would seem to advocate FERC's inclusion of GHG emissions analysis in future proposed pipeline projects. One sentence from that executive order reads, "The Federal Government must drive assessment, disclosure, and mitigation of climate pollution and climate-related risks in every sector of our economy, marshaling the creativity, courage, and capital necessary to make our Nation resilient in the face of this threat."
Industrial Info is tracking 485 reports for active U.S. natural gas pipeline projects valued at about $40 billion. Texas, Alaska and Louisiana are the states with the largest dollar value of proposed natural gas pipeline projects.
Click on the image at right to see the 10 states with the highest dollar value of proposed natural gas pipeline projects.
In a statement after the March 18 decision, FERC acknowledged its "approach to natural gas project greenhouse gas emissions has been the subject of disagreement among the commissioners for several years."
"Going forward, we are committed to treating greenhouse gas emissions and their contribution to climate change the same as all other environmental impacts we consider," FERC Chairman Rich Glick said in the statement. "A proposed pipeline's contribution to climate change is one of its most consequential environmental impacts and we must consider all evidence in the record -- both qualitative and quantitative -- to assess the significance of that impact. I look forward to continuing to work with my colleagues as we refine our methods for doing so."
The decision in the Northern Natural Gas case was relatively easy. Since the proposed project would replace an existing gas pipeline with a new one, the commission found the incremental addition to GHG emissions would be negligible. But for greenfield interstate gas pipeline projects, or even proposed interstate pipelines that would transport oil or carbon dioxide (CO2), that could be a different story, particularly given FERC's inquiry into certification of new gas pipelines.
The decision (Docket CP20-487) led to salty exchanges between Glick (D) and Commissioner James Danly (R), who served as chair prior to Glick. Danly said the commission was acting unlawfully, called the reasoning in the order "legally infirm" and said it was a "drastic departure from the commission's long-standing position" on GHG assessments that was unfair to natural gas companies.
"None of the parties were really on notice that such a dramatic change would occur," Danly asserted. "And so they weren't aware of the fact they would want to intervene to protect their interests." He urged energy companies to intervene in "every case" before the commission in order to preserve their legal rights to appeal a FERC decision that could go against the industry.
"Every single natural gas pipeline company, every LNG company, and every shipper should intervene in every single certificate proceeding pending before the commission. All of them," Danly said. "There's no other way, if you don't do that, to ensure your status as a party to the litigation, thereby guaranteeing you have a vehicle for appeal." Glick slammed his Republican colleague as a hypocrite. "You had suggested that everyone should intervene in all these natural gas pipeline proceedings. Well, I would say the same for not just the pipeline companies, but for all the other people that have been screwed by the Commission."
Glick added that Danly's stance was the "the height of hypocrisy," given that in an earlier role at FERC, as General Counsel, he decided affected landowners didn't need to be invited to regulatory proceedings when proposed energy projects were built on or across their lands.
"Absolutely, if you're a pipeline company, and you want to intervene in a proceeding, go for it ... but I would say that everyone else, please you intervene too, because we need to hear your voices as well," Glick said. "Not just the voices that can afford high-priced Washington D.C. law firms to participate in these proceedings."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
The FERC vote was 3-2, with Republican Commissioner Neil Chatterjee joining FERC's two Democratic commissioners. Chatterjee had been chairman of the commission until late last year, when he was demoted by then-President Donald Trump, who feared Chatterjee might be amenable to regulating greenhouse gas emissions.
Although the decision was narrowly focused on Northern Natural Gas' request to replace the A-Line, an aging 87.3-mile natural gas pipeline in the Midwest, the commission separately is conducting a broader inquiry into certification of new interstate natural gas pipelines. That inquiry could lead to a policy statement that the commission should include GHG assessments in its consideration of future interstate natural gas pipelines.
Under the Trump administration, the Republican majority at FERC opposed conducting GHG assessments on proposed oil or gas pipelines. Federal courts have criticized FERC's unwillingness to conduct those assessments. The election of President Joe Biden may signal a change in the agency's stance. Although Democrats currently are in the minority at FERC, Biden appointed Glick chair of the body upon his election as president.
In President Biden's flurry of "Day One" executive orders, he issued one, on "Tackling the Climate Crisis at Home and Abroad," that would seem to advocate FERC's inclusion of GHG emissions analysis in future proposed pipeline projects. One sentence from that executive order reads, "The Federal Government must drive assessment, disclosure, and mitigation of climate pollution and climate-related risks in every sector of our economy, marshaling the creativity, courage, and capital necessary to make our Nation resilient in the face of this threat."
Industrial Info is tracking 485 reports for active U.S. natural gas pipeline projects valued at about $40 billion. Texas, Alaska and Louisiana are the states with the largest dollar value of proposed natural gas pipeline projects.
Click on the image at right to see the 10 states with the highest dollar value of proposed natural gas pipeline projects.In a statement after the March 18 decision, FERC acknowledged its "approach to natural gas project greenhouse gas emissions has been the subject of disagreement among the commissioners for several years."
"Going forward, we are committed to treating greenhouse gas emissions and their contribution to climate change the same as all other environmental impacts we consider," FERC Chairman Rich Glick said in the statement. "A proposed pipeline's contribution to climate change is one of its most consequential environmental impacts and we must consider all evidence in the record -- both qualitative and quantitative -- to assess the significance of that impact. I look forward to continuing to work with my colleagues as we refine our methods for doing so."
The decision in the Northern Natural Gas case was relatively easy. Since the proposed project would replace an existing gas pipeline with a new one, the commission found the incremental addition to GHG emissions would be negligible. But for greenfield interstate gas pipeline projects, or even proposed interstate pipelines that would transport oil or carbon dioxide (CO2), that could be a different story, particularly given FERC's inquiry into certification of new gas pipelines.
The decision (Docket CP20-487) led to salty exchanges between Glick (D) and Commissioner James Danly (R), who served as chair prior to Glick. Danly said the commission was acting unlawfully, called the reasoning in the order "legally infirm" and said it was a "drastic departure from the commission's long-standing position" on GHG assessments that was unfair to natural gas companies.
"None of the parties were really on notice that such a dramatic change would occur," Danly asserted. "And so they weren't aware of the fact they would want to intervene to protect their interests." He urged energy companies to intervene in "every case" before the commission in order to preserve their legal rights to appeal a FERC decision that could go against the industry.
"Every single natural gas pipeline company, every LNG company, and every shipper should intervene in every single certificate proceeding pending before the commission. All of them," Danly said. "There's no other way, if you don't do that, to ensure your status as a party to the litigation, thereby guaranteeing you have a vehicle for appeal." Glick slammed his Republican colleague as a hypocrite. "You had suggested that everyone should intervene in all these natural gas pipeline proceedings. Well, I would say the same for not just the pipeline companies, but for all the other people that have been screwed by the Commission."
Glick added that Danly's stance was the "the height of hypocrisy," given that in an earlier role at FERC, as General Counsel, he decided affected landowners didn't need to be invited to regulatory proceedings when proposed energy projects were built on or across their lands.
"Absolutely, if you're a pipeline company, and you want to intervene in a proceeding, go for it ... but I would say that everyone else, please you intervene too, because we need to hear your voices as well," Glick said. "Not just the voices that can afford high-priced Washington D.C. law firms to participate in these proceedings."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
