D.C. Court Revokes Approval for Three LNG Projects Due to Environmental Concerns
The D.C. Circuit Court has overturned the approval of three liquefied natural gas (LNG) export terminal and related pipeline projects at the Port of Brownsville. This decision effectively nullifies the previous approval granted by the Federal Energy Regulatory Commission for these projects.
First Time Court Overturns FERC Approval of an LNG Terminal
The Sierra Club, which announced the ruling, stated that this is the first time a court has overturned the Federal Energy Regulatory Commission's approval of an LNG terminal. The commission had previously approved the Rio Grande LNG, Texas LNG, and the Rio Bravo Pipeline, despite widespread concerns about the potential harm these projects could cause to surrounding communities and the environment.
The Sierra Club, the city of Port Isabel, Vecinos para el Bienestar de la Comunidad Costera, and the Carrizo/Comecrudo Tribe of Texas, a Floreville-based nonprofit organization, filed a lawsuit against the Federal Energy Regulatory Commission. They claimed that the commission failed to adequately consider the environmental justice impacts and greenhouse gas emissions of the three projects, as required by the National Environmental Policy Act and the Natural Gas Act.
Court Upholds Petitioners' Arguments
The D.C. court agreed with the petitioners' arguments, thereby revoking the commission's approvals. The agency now has to reassess the impacts of the three projects. This will necessitate a new draft supplemental Environmental Impact Statements and a public comment period before the commission decides whether to issue new project permits.
The Sierra Club noted that this ruling follows two other rulings in July that questioned the adequacy of the commission's reviews. Last month, the D.C. Circuit Court ruled that the commission had failed to consider greenhouse gas emissions and the market need for the expansion of Real Energy Access, a pipeline project in the Northeast by Williams company.
The same court also ruled that the commission failed to adequately assess Commonwealth LNG’s air pollution impacts and greenhouse gas emissions. The Sierra Club stated that it is unacceptable for the commission to conduct insufficient environmental justice analysis and to decline to make determinations on the significance of climate-warming emissions.
Natural Gas Act of 1938 and National Environmental Policy Act
The Natural Gas Act, enacted in 1938, was primarily aimed at regulating the rates charged by interstate natural gas transmission companies. The Federal Power Commission, which later became the Federal Energy Regulatory Commission, was given control over the regulation of interstate natural gas sales.
The National Environmental Policy Act, passed by the U.S. Congress in December 1969 and signed into law by President Richard Nixon on January 1, 1970, has been applied to any major project that involves federal funding, work performed by the federal government, or permits issued by a federal agency.
Environmental Justice and the Future of Approved Projects
The courts have expanded the act to include environmental justice. Now, for three approved projects where construction has already begun, a new draft supplemental Environmental Impact Statements and a public comment period will be required before the commission decides whether to issue new project permits, all in the name of “environmental justice”.
It is noted that the average time for a review is 4.5 years, which could potentially delay these projects significantly.
Bottom Line
This ruling represents a significant shift in the regulation of LNG projects and underscores the increasing importance of environmental justice in policy decisions. It raises questions about the future of similar projects and the balance between economic development and environmental protection. What are your thoughts on this matter? Share this article with your friends and let them know about these developments. Don't forget to sign up for the Daily Briefing, which is delivered every day at 6pm.
