Court Vacates FERC Approval of $950 Million Gas Pipeline, Citing Inadequate Review of Environmental Impact and Market Studies.

The U.S. Court of Appeals for the District of Columbia Circuit has vacated the Federal Energy Regulatory Commission’s approval of a $950 million gas pipeline project built by a Williams subsidiary. The court claimed that FERC failed to adequately address critical market studies, ignored state laws requiring reductions in natural gas usage, and ignored financial incentives. The commission’s decision not to determine the significance of the project’s greenhouse gas emissions was arbitrary and capricious. The unanimous court decision comes as FERC has been dealing with its review of gas infrastructure projects, including whether they are needed and their impact on climate change. The agency continues to operate using a review policy set in 1999.