On remand from the United States Court of Appeals for the District of Columbia Circuit (“D.C. Circuit”), FERC reaffirmed that Rio Grande LNG, LLC’s proposed liquified natural gas (“LNG”) terminal project (“Rio Grande LNG Terminal”) was not inconsistent with the public interest, and that the Rio Bravo Pipeline Company, LLC’s proposed pipeline project (“Rio Bravo Pipeline Project”), as amended, was required by the public convenience and necessity. In doing so, FERC addressed a variety of highly-contested issues, including whether it must apply the social cost of carbon and expand its prior environmental justice analysis. Chairman Phillips concurred, and Commissioner Clements dissented from FERC’s decision.
Additionally, on the issue of environmental justice, FERC conducted a new environmental justice analysis using a radius of 50 kilometers. FERC concluded that the impacts on environmental justice populations from the Projects would be disproportionately high and adverse because they would be predominately borne by the environmental justice communities identified and, specifically, communities in the areas near the Rio Grande LNG Terminal may experience significant cumulative visual impacts; however, all other impacts (e.g., wetlands, surface water, traffic) would be less than significant for the Projects. Accordingly, FERC continued to find that the Projects are environmentally acceptable actions, that the Rio Grande LNG Terminal is in the public interest, and that the Rio Bravo Pipeline Project is required by the public convenience and necessity.
In his concurring opinion, Chairman Phillips commented on how the order took an unprecedented and bipartisan approach to protect environmental justice communities from potential concerns about the Projects’ effects on air quality. Chairman Phillips also commented on FERC’s decision requiring that a plan be filed to ensure that overlapping construction and operation of the Projects will not cause any exceedance of National Ambient Air Quality Standards, which it required on its own initiative for the first time.
Commissioner Clements dissented, arguing that (1) FERC was required to prepare a supplemental EIS and its failure to do so renders the order’s significance determinations unsupportable; (2) FERC should have granted requests to hold public meetings addressing its new analyses of environmental and other impacts; and (3) the order’s explanation for why FERC is not determining the significance of GHG emissions associated with the projects was insufficient.
A copy of the order can be found here.