Page 10 - NorthAmOil Week 12 2021

NorthAmOil POLICY NorthAmOil

FERC incorporates emissions

into gas certificate decision

US THE US Federal Energy Regulatory Commis- pragmatic compromise, and without a compro-
sion (FERC) has incorporated a review of cli- mise, infrastructure projects won’t get built,”
mate change impacts into a natural gas certificate Chatterjee said at FERC’s open meeting on
decision for the first time. March 18, where the decision was first reached.
This week, the regulator approved Northern Consultancy IHS Markit noted that Chatterjee’s
Natural Gas’ request to build 87.3 miles (140.5 support was critical, given that the Republicans
km) of replacement pipeline to upgrade its sys- hold a 3-2 majority at the commission, despite a
tem in South Dakota and Nebraska, taking into Democrat being the current chair.
account the greenhouse gas (GHG) emissions Danly and Christie have both said that
that would be generated by the project. It ulti- they would prefer for FERC’s policy to remain
mately concluded that the impacts of the pro- unchanged until a policy review process that
ject’s emissions were “not significant”. Glick started on February 18 has been com-
FERC commissioner Neil Chatterjee, a pleted. Danly noted that no threshold has yet
Republican who formerly chaired the commis- been established for what level of emissions
sion under US President Donald Trump, joined would be considered significant. He also went Glick has
current FERC chairman Richard Glick and Alli- a step further, calling on pipeline operators
son Clements, both Democrats, in the decision. to protect their interests by filing interven- argued that
Republican commissioners James Danly and tion letters to protest the review of GHG
Mark Christie both voiced partial dissents over emissions. the new policy
incorporating such a major policy shift into the And this seems to have had at least some
otherwise small March 22 decision, but ulti- impact, Enbridge Pipeline has already filed a will actually
mately it was approved. request for late intervention in the Northern provide pipeline
The decision marks a significant policy pivot Natural Gas project. In its request, Enbridge said
for FERC, which has indicated that it will con- it was “concerned about the possibility of indus- developers with
tinue assessing the impact of projects’ GHG try-wide policy changes occurring in individual
emissions and their contribution to climate certificate dockets” at the commission. “Such greater protection
change. policy changes have the potential to apply gen-
“A proposed pipeline’s contribution to cli- erally to all natural gas industry participants, and certainty.
mate change is one of the most consequential and affect the natural gas industry as a whole and
environmental impacts and we must consider each of the Enbridge Gas Pipelines individually
all evidence in the record – both qualitative and in a manner not contemplated in discrete pro-
quantitative – to assess the significance of that ceedings,” the company added.
impact,” Glick stated. His stance was supported However, Glick has argued that the new pol-
by Chatterjee, who said the new approach bal- icy will actually provide pipeline developers with
anced environmental concerns with the need to greater protection and certainty, while FERC’s
expand the US’ pipeline infrastructure. prior refusal to consider GHG impacts had left
“This is a big, bipartisan step forward. It’s a all approvals on shaky legal ground.™

P10 www. NEWSBASE .com Week 12 25•March•2021