Page 4 - NorthAmOil Week 08 2022

NorthAmOil COMMENTARY NorthAmOil

FERC approves gas pipeline

certification shake-up

The US Federal Energy Regulatory Commission has agreed to overhaul

the certification process for new natural gas pipeline projects

US THE US Federal Energy Regulatory Commis- pipeline projects when federal agencies, includ-
sion (FERC) has agreed to overhaul the certi- ing the commission, fail to fulfil their statutory
WHAT: fication process for new natural gas pipeline responsibilities assessing the potential effects of
FERC has approved projects. a project on the environment, landowners and
plans to overhaul the The commission voted for changes that would communities. If we are going to ensure legal
certification process result in greater scrutiny of the economic need durability of our orders, it is essential that the
for new natural gas for new projects, as well as their environmental commission satisfy its statutory obligations the
pipelines. and local impacts. The new standards will apply first time.”
to pending projects as well as future ones, poten- But like the Biden administration’s broader
WHY: tially complicating the way forward for billions goals, FERC’s changes are proving controversial,
Under US President of dollars’ worth of proposed gas infrastructure fuelling the debate over whether the US should
Joe Biden, the investments. According to Bloomberg, nearly be tightening the rules for building new energy
regulator wants to look 13bn cubic feet (368mn cubic metres) of new infrastructure at home at a time when energy
more closely at the gas capacity could be subject to the changes. security is in the spotlight.
environmental impacts of FERC’s chairman, Richard Glick, has been
projects. vocal since his appointment last year by US Changes
President Joe Biden about his focus on climate According to FERC’s Updated Certificate Policy
WHAT NEXT: change and environmental concerns. Changes Statement, the commission will consider “all
The move creates to the certification process – the first in 23 years impacts of a proposed project, including eco-
additional uncertainty for – thus come as no surprise and are consistent nomic and environmental impacts, together”.
billions of dollars’ worth with the broader pursuit of environmental goals The update also calls for “a robust consideration
of pipeline investments. by the Biden administration. of impacts to landowners and environmental
“I believe today’s long overdue policy statements justice communities in the commission’s deci-
are essential to ensuring the commission’s natu- sion-making process”.
ral gas siting decisions are reflective of all stake- At the same time as the updated rules, the
holder concerns and interests,” Glick stated on commission also issued an interim statement
February 17. “We have witnessed the impact on on greenhouse gas (GHG) emissions. This

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