The Federal Energy Regulatory Commission (FERC) announced it’s not adding climate change and environmental justice considerations for pending and new natural gas projects at this time.
This announcement reverses course from a February decision that critics contend would have stalled new construction of natural gas pipelines and liquefied natural gas (LNG) terminals.
Following opposition from a bipartisan group of lawmakers and energy industry players and the war in Ukraine, the agency reversed its decision last week by a unanimous vote. Going forward, FERC’s new policy “is now labeled as a draft and would apply only to projects filed after FERC finalizes the policy statements.” Moreover, the agency used this opportunity to announce three new pipeline projects.
The move to pull back on the rule change comes after the U.S. pledged to export more liquified natural gas (LNG) to Europe in wake of Russia’s invasion of Ukraine.
Forbes noted the issue isn’t having natural gas – the U.S. has plenty of it – but instead the problem is an above-ground failure to develop LNG terminals and natural gas pipelines despite the low costs associated with producing cheap energy.
According to the Energy Information Agency (EIA), as of January 2022, our country is sitting on 473.3 trillion cubic feet of proven natural gas reserves. But the Biden administration refuses to further develop cheap and clean natural gas because it is beholden to a climate and renewables-first policy.
With natural gas prices heating up in wake of inflation and the war in Ukraine, FERC did the right thing.
If FERC can abandon bad energy policy that would have increased energy costs for consumers, perhaps the Biden administration can do the same.