According to the Federal Energy Regulatory Commission, a plan to address climate effects is now considered a draft. It will not apply to future projects.
Key lawmakers and industry groups had criticised a proposal to tighten climate regulations that was approved last month. They claimed it was inappropriately timed in the context of increased natural gas exports after Russia’s invasion.
Senator Republican Leader Mitch McConnell called climate policy “baffling”, while Senate Energy Committee Chairman Joe Manchin (D-W.Va) said that the agency’s “reckless decision” to add unnecessary roadblocks to natural gas project approvals “puts our nation’s security at risk.”
McConnell wrote Thursday that the energy commission had chosen to do the opposite. This was hours before the panel reversed its decision on the climate proposal.
Climate activists claimed that FERC was bowing to political pressure. Richard Glick, Chairman of FERC, denied this claim.
He said that he was not going to do any political work and added that he and the other commissioners had held discussions with many pipeline and natural gas companies after the panel approved the climate policy. Glick stated that industry leaders had told him that the policy changes raised additional questions and could be clarified.
The energy commission approved policy statements that directed officials to examine how natural gas pipelines and other projects impact climate change and environmental justice at a February 17 meeting. Glick, two other Democratic commissioners and two Republicans opposed the policy changes were among those who voted for them.
At the time, the panel stated that the new guidance would be effective immediately and applicable to all pending and future gaz projects. The panel voted unanimously to withdraw from the commitment. It is currently considered a draft and will only apply to projects that are filed after FERC has finalized its policy statements. The commission stated that it will solicit further public comments before taking a final decision.
Three natural gas projects were approved by FERC in a similar development. These three projects had been pending before the panel since months. The U.S. Gulf Coast will see two of the three projects expand their gas production, with the third being in New York State. One of the projects will connect to an export terminal in Louisiana for liquid natural gas.
In the wake of the Ukraine war, the U.S. increased LNG exports from Europe by a large amount. The U.S. is now looking for ways to “surge” LNG supplies to Europe to reduce dependence on Russian gas. Jake Sullivan, President Joe Biden’s national security advisor, stated that the U.S. has been increasing LNG exports to Europe sharply.
90% of the EU’s natural gas is imported from Russia, which supplies almost 40% of its gas and 25% of its oil.
American Gas Association stated that FERC’s decision to delay climate policy was encouraging, adding that without any changes, the plan would “actively discourage development of pipeline infrastructure. It will also reduce reliability and increase consumer costs.”
Wyoming Senator John Barrasso is the top Republican on Senate’s energy panel. He said that FERC should “go back to the drawing board” and “start over with these harmful proposals.”
Kelly Sheehan is the Sierra Club’s senior director for energy campaigns. She said that the draft policy was only a step towards meeting the legal requirements of the Commission to protect the environment, and prevent climate change.
Sheehan stated that the fossil fuel industry and politicians they fund are arguing a pitch because they fear that FERC’s proposed policy changes could restrict their ability to build as many polluting pipes as they like, without considering the effects on communities or the environment.
Thursday’s approval by FERC of three fracked gas pipelines “makes clear that FERC is not changing its course,” Sheehan said.
Neil Chatterjee, a former Chairman of FERC, was a Republican who supported a climate change compromise last year and decried the actions of the panel.
He wrote on Thursday, “Today’s results expose that @ferc now a political entity more than a quasi judicial one,” he said via Twitter. “Should we place more emphasis on lobbying commissioners rather than on arguments in (court-) pleadings?”
Chatterjee was a former McConnell aide and was later promoted to chairman by Trump. He called the panel’s decision to delay climate rule “a huge-time win for pipeline companies.” He wrote that any company contemplating a natural gas project should “move forward ASAP” before the statement are finalized by the commission.
