Summary
The D.C. Circuit reviews a petition by environmental groups challenging the Federal Energy Regulatory Commission's approval of a natural gas pipeline crossing into Mexico. The court holds that FERC reasonably exercised its discretion to decline jurisdiction over the intrastate portion of the pipeline under Section 3 of the Natural Gas Act, correctly determined it lacked jurisdiction under Section 7, and properly conducted its NEPA analysis. All arguments are rejected and the petition is denied.
Topics
Practice areas
Questions Presented
- Whether FERC properly declined jurisdiction over the Connector Pipeline under §§3 and 7 of the Natural Gas Act.
- Whether FERC’s NEPA analysis of the Border Facility was adequate and not arbitrary or capricious.
- Whether FERC’s approval of the Border Facility violated the National Environmental Policy Act.
Holdings
- FERC properly declined jurisdiction over the Connector Pipeline under both §3 and §7, exercising its discretion consistent with prior practice.
- FERC’s NEPA analysis satisfied the requirements of 42 U.S.C. §4332; the agency considered a reasonable range of alternatives and provided a reasoned explanation, so the approval was not arbitrary or capricious.
- FERC’s approval did not violate NEPA; the agency’s environmental assessment was sufficient and the petitioners failed to show arbitrary or capricious action.
Key quotations
“FERC must also consider “a reasonable range of alternatives to the proposed agency action . . . that are technically and economically feasible, and [that] meet the purpose and need of the proposal.” Id. § 4332(2)(C)(iii).”
“The court has long affirmed a general presumption favoring authorization under the Natural Gas Act. Center for Biological Diversity v. FERC, 67 F.4th at 1188.”
Factual background
FERC approved a 1,000‑foot border‑crossing natural‑gas pipeline segment (the Border Facility) and declined jurisdiction over the 155‑mile Connector Pipeline that runs from the Waha Hub in Texas to the border. Petitioners argued FERC should have exercised jurisdiction under §§3 and 7 of the Natural Gas Act and that its NEPA analysis was deficient.
Procedural history
The petitioners appealed FERC's orders approving a 1,000‑foot border‑crossing pipeline segment and declining jurisdiction over the 155‑mile Connector Pipeline.