EPA Abandons Controversial “Social Cost” Analysis Commenting On FERC Pipeline Policy
As the public comment period ended for the Federal Energy Commission’s proposed revision to its gas pipeline policy, it appeared that the U.S. EPA was backtracking on earlier recommendations it had made to FERC as far as tools for evaluating climate change impacts. The proposed policy identified that FERC was considering changes to how large of a factor climate change would play in FERC’s evaluation of the project, and to handling of landowner concerns over eminent domain exercised by FERC.
The feedback was finalized Wednesday, and ranged from industry groups urging FERC to maintain the status quo to environmental advocates asking for more robust review of climate impacts and landowner concerns. However, the real surprise was the EPA’s comment submission, which sought to clarify a prior comment recommending ways for FERC to evaluate pipelines’ cumulative impacts, and tools the agency could use to evaluate greenhouse gas emission impacts. EPA’s new comments point to President Trump’s rescission of the “social cost of carbon measurements” approach, as developed by the Obama administration. To comply with the rescission of the policy, the EPA commented that the social cost of carbon is likely not appropriate for inclusion in reviews of specific projects. Further, neither NEPA nor White House implementing regulations require FERC to conduct a “social” analysis of a proposed action since it has nothing to do with the environment.
The scope of FERC’s review of the GHG impacts created by pipeline projects has been, and will continue to be, a divisive issue among FERC commissioners and EPA leadership.