Advocates have been trying for decades to engage FERC in a significant course correction: assessing whether interstate gas pipelines serve the public interest, rather than relying on private contracts to assume that it does. Yet FERC has resolutely ignored its Natural Gas Act mandate to protect the public interest, including when it approved the Regional Energy Access pipeline despite substantial evidence showing the project would serve private interests at the public’s expense.
In a case where Policy Integrity submitted an amicus brief demonstrating why FERC’s decision ought not receive deference, the D.C. Circuit vacated FERC’s authorization. This was the first time that the courts have done so for a project where there wasn’t blatant affiliate self-dealing. FERC rode roughshod over the state of New Jersey, ignoring both the public utilities commission, and the ratepayer advocate who were trying to guard against this debacle. The case is an incredibly important precedent as states move forward towards implementing greenhouse gas reduction laws, which will continue to impact market need for fossil gas projects like this one. Hopefully, with this case, the days of FERC relying on private contracts to assume public need are coming to a close.