On May 9, 2025, fifteen democratic states (“Plaintiff States”) sued the Trump Administration in Washington District Court, claiming that President Trump’s executive order “Declaring a National Energy Emergency” (“Executive Order”) is unlawful. The Plaintiff States argue that the Executive Order commands federal agencies to disregard the law and applicable regulations to fast-track activities that will damage waters, wetlands, endangered species, and the people and wildlife that rely on these resources.
Natural Gas
FERC Approves Uncontested Rate Case Settlements in 2024 Rate Cases Filed by Algonquin Gas Transmission and Maritimes & Northeast Pipeline
On April 25, 2025, FERC approved two uncontested stipulation and agreements that propose to settle the Natural Gas Act (“NGA”) section 4 general rate cases filed on May 30, 2024, by two interconnected pipelines, Algonquin Gas Transmission, LLC (“Algonquin”) and Maritimes & Northeast Pipeline, L.L.C. (“Maritimes”). Both settlements established a 13.5% return on equity (“ROE”) for the calculation of rates for new incremental expansion projects following the settlements’ effective dates, and for the equity component of Allowance for Funds Used During Construction (“AFUDC”).
FERC Denies NGO Transmission, Inc.’s Application to Abandon Jurisdictional Facilities
On April 24, 2025, FERC denied NGO Transmission, Inc.’s (“NGO Transmission”) application under 7(b) of the Natural Gas Act (“NGA”) to abandon its jurisdictional facilities and reclassify them from jurisdictional transmission facilities to non-jurisdictional local distribution facilities. FERC concluded that NGO Transmission’s facilities do not directly serve end-use customers in…
D.C. Circuit Denies Healthy Gulf’s and Sierra Club’s Petition for Review of FERC Order Authorizing Construction and Operation of Two New Natural Gas Pipelines
On March 28, 2025, the D.C. Circuit denied a joint petition for review brought by Healthy Gulf and Sierra Club (together, “Petitioners”) challenging FERC’s grant of a certificate of public convenience and necessity (CPCN) to Driftwood Pipeline LLC (Driftwood) to construct two new natural gas pipelines (the “Project”) in southwestern Louisiana on grounds that FERC’s decision failed to comply with National Environmental Policy Act (NEPA) and the Natural Gas Act (NGA). The D.C. Circuit affirmed FERC’s analyses under NEPA and NGA but declined to address Driftwood’s claim that the Council on Environmental Quality’ (CEQ) regulations implementing NEPA, upon which Petitioners based their arguments, are not judicially enforceable because CEQ lacks authority to promulgate them.
FERC Reinstates Authorization for Transco Pipeline Expansion Project
On January 24, 2025, FERC reinstated a certificate of public convenience and necessity (“CPCN”) for Transcontinental Gas Pipe Line Company’s (“Transco”) Regional Energy Access Expansion Project (“Project”) after the D.C. Circuit vacated and remanded FERC’s initial order certificating the Project (“Certificate Order”).
In January 2023, FERC granted Transco a CPCN…
FERC Withdraws Draft GHG Policy Statement and Terminates Associated Proceeding
On January 24, 2025, FERC withdrew its 2022 draft Greenhouse Gas (“GHG”) Policy Statement and terminated the associated proceeding. FERC determined that, after reviewing the entire record, issues concerning GHG emissions are better analyzed on a case-by-case basis when raised by parties in proceedings. Commissioners Phillips, Rosner, and Chang issued a joint concurrence noting that, although FERC is withdrawing its draft GHG Policy Statement, FERC still considers GHG emissions under its National Environmental Policy Act (“NEPA”) analysis and balances project benefits with potential adverse consequences under the Natural Gas Act (“NGA”).
D.C. Circuit Upholds FERC Order Requiring Stingray to Restore Service Before Abandoning Damaged Pipeline
On December 20, 2024, the United States Court of Appeals for the District of Columbia Circuit (“D.C. Circuit”) upheld FERC’s order authorizing Stingray Pipeline Company, L.L.C. (“Stingray”) to abandon a portion of its pipeline system on the condition that before doing so, Stingray either restore service or obtain a shipper agreement that the damaged pipeline segment remain out of service.
D.C. Circuit Vacates FERC’s Approval of Transco’s Pipeline Expansion
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…
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.