On July 30, 2024, the United States Court of Appeals for the District of Columbia Circuit (“D.C. Circuit”) issued an opinion vacating and remanding FERC’s order approving Transcontinental Gas Pipe Line Company’s (“Transco”) Regional Energy Access Expansion Project (“Project”) determining that FERC failed to consider environmental consequences and evidence suggesting
Natural Gas
FERC Chief Accountant Proposes to Modify Transferability of Income Tax Credits
On September 12, 2024, FERC’s Chief Accountant issued a notice of proposed accounting release (“NOPAR”) to modify the transferability of income tax credits (“ITCs”) related to certain energy projects under the Inflation Reduction Act of 2022 (“IRA”), which allows entities to monetize such ITCs via transfers to independent third parties…
D.C. Circuit Finds FERC Failed to Adequately Consider GHG Emissions of LNG Project
On July 16, 2024, the United States Court of Appeals for the District of Columbia Circuit (“D.C. Circuit”) found that FERC failed to adequately consider a liquefied natural gas (“LNG”) project’s greenhouse gas (“GHG”) emissions and failed to properly assess the cumulative effects of the LNG project’s nitrogen dioxide (“NO2”) emissions. While the D.C. Circuit remanded to FERC for further consideration, it did so without vacatur.
D.C. Circuit Declines to Stay EPA’s New Methane Rule
On July 9, 2024, the United States Court of Appeals for the District of Columbia Circuit (“D.C. Circuit”) declined to stay a new Environmental Protection Agency (“EPA”) rule that seeks to limit methane emissions in the oil and gas industries (“Methane Rule”), thereby allowing the Methane Rule to remain in effect while litigation proceeds.
D.C. Circuit Denies Food & Water Watch’s Challenges to FERC’s GHG Review in NGA Certificate Proceeding
On June 14, 2024, the United States Court of Appeals for the District of Columbia Circuit (“D.C. Circuit”) denied Food & Water Watch’s environmental challenges to the FERC’s order granting a certificate of public convenience and necessity (“CPCN”) to Tennessee Gas Pipeline Company (“Tennessee Gas”) for its East 300 Upgrade Project (“Project”).
Fueling Up: How to Make U.S. Clean Hydrogen Projects Happen
We are pleased to announce the release of our latest whitepaper, Fueling Up: How to Make U.S. Clean Hydrogen Projects Happen. This comprehensive report explores the critical steps needed to unlock the potential of clean hydrogen in the U.S., and the related challenges faced by developers and utilities.
Senate Introduces Bipartisan Legislation to Give FERC Retroactive Refund Authority Under Section 5 of the Natural Gas Act
On April 18, 2024, Senators Richard Blumenthal (D-CT) and Cindy Hyde-Smith (R-MS) introduced the Making Pipelines Accountable to Consumers and Taxpayers Act (“MPACT Act”) (S. 4171) that, if adopted, would grant FERC authority to order refunds under section 5 of the Natural Gas Act (“NGA”). Specifically, the MPACT Act amends section 5 of the NGA to give FERC authority to order a pipeline to issue retroactive refunds for charges FERC determines are unjust and unreasonable. The MPACT is intended to align FERC’s authority over the gas and electric industries and protect customers from unjust and unreasonable rates. At this time, a companion bill has not been introduced in the House of Representatives.
D.C. Circuit Upholds FERC Orders Granting Natural Gas Pipeline Companies’ Requests to Extend Project Deadlines
The United States Court of Appeals for the District of Columbia (“D.C. Circuit”) recently upheld two FERC orders granting natural gas pipeline developers’ requests to extend their construction deadlines. The D.C. Circuit denied the Sierra Club’s petitions for review of the extension orders because the court determined that FERC’s decisions were reasonable and adequately supported by the record. The D.C. Circuit further provided that FERC has broad discretion in determining whether a developer has demonstrated good cause for an extension and whether circumstances have changed enough to warrant revisiting FERC’s original findings.
FERC Initiates Inquiry into Capacity Allocation on Non-Contiguous Pipeline Segments
On March 21, 2024, FERC issued a Notice of Inquiry (“NOI”) seeking additional information on whether the Commission should continue to allow interstate pipelines to package “high value” capacity with non-contiguous and operationally unrelated parcels of capacity in a single auction or open season, thus requiring interested bidders to bid on both segments of capacity. Initial comments on the NOI are due by June 20, 2024.
FERC Grants Certificate to Transco’s Texas to Louisiana Energy Pathway Project
On January 18, 2024, FERC granted a certificate of public convenience and necessity to Transcontinental Gas Pipe Line Company, LLC (“Transco”) to construct and operate the Texas to Louisiana Energy Pathway Project (“Texas to Louisiana Project”), an approximately $91.8 million expansion project designed to provide 364,400 dekatherms per day of firm transportation service to EOG Resources, Inc. (“EOG Resources”). The Texas to Louisiana Project will provide firm transportation service to EOG Resources through a combination of (1) the conversion of Transco’s IT Feeder System to firm transportation service, (2) the turnback of certain firm transportation service by Transco’s existing customers, and (3) the addition of incremental firm transportation service made possible by the construction of a new compressor station and modifications to existing compressor stations in Texas. The Texas to Louisiana Project is fully subscribed by EOG Resources pursuant to a fifteen-year precedent agreement (“Project Precedent Agreement”).