Federal Appeals Court Overturns FERC Approval of $1 Billion Gas Project, Boosting New Jersey’s Climate Goals.

A federal appeals court has overturned an approval for a Northeastern gas project by the Federal Energy Regulatory Commission (FERC) in a major victory for New Jersey’s climate ambitions and advocates who want federal regulators to consider environmental consequences and a lack of market demand for additional gas capacity. The court found that FERC had failed to account for state laws requiring reductions in gas consumption. The Transcontinental Pipe Line Co. Regional Energy Access Expansion (REAE) project would result in “enormous” emissions for the next half century, according to Judge J. Michelle Childs. The three-judge panel ordered FERC to start over on the certificate, noting that it was not “sufficiently likely” that the commission would explain its decision-making if the court simply remanded the approval. The $1 billion project included 36 miles of new pipe, new and modified compressor stations, and other facilities to serve about 3 million customers.