are expected to be temporary or short term,” that “all impacts from construction and operation. The Commission based its conclusion, among other things, on findings in the final environmental impact statement (“EIS”) that “most of the direct environmental impacts from construction. In its NGA section 3 review of the Export Terminal, the Commission held that the siting, construction, and operation of the project would not be inconsistent with the public interest. Additionally, both FERC and the DOE have independent obligations to review indirect and cumulative environmental effects under the National Environmental Policy Act (“NEPA”). FERC reviews proposed pipelines under NGA section 7’s public convenience and necessity standard, guided by the factors enumerated in its Certificate Policy Statement. LNG export projects are subject to a bifurcated public interest review under section 3 of the NGA, with the Department of Energy (“DOE”) evaluating the impacts of LNG exports and FERC considering the effects associated with the siting, construction, and operation of the LNG terminals. Natural gas will be delivered to the Export Terminal by TransCameron’s proposed 23.4-mile, 42-inch diameter interstate pipeline, which will extend from the Grand Chenier Station in Cameron Parish, Louisiana to the Export Terminal and will be able to provide up to 2,125,000 dekatherms per day (“Dth/d”) of natural gas transportation service. The Export Terminal, to be located along the Calcasieu Ship Channel in Cameron Parish, Louisiana, will have a nameplate capacity of 10 million metric tons per annum (“MTPA”) and a peak capacity of 12 MTPA under optimal operating conditions. Although the Certificate Order drew favorable conclusions in its environmental review of the projects, a concurrence by Commissioner LaFleur and a dissent by Commissioner Glick signaled growing dissatisfaction among half of the current Commission with respect to FERC’s practice of evaluating a project’s greenhouse gas (“GHG”) emissions. 1 The Certificate Order also authorized TransCameron Pipeline, LLC (“TransCameron”) to construct and operate a new interstate pipeline under NGA section 7. On February 21, 2019, the Federal Energy Regulatory Commission (“FERC” or “the Commission”) issued an order authorizing Venture Global Calcasieu Pass, LLC (“Calcasieu Pass”) to site, construct, and operate a new liquefied natural gas (“LNG”) terminal and associated facilities (the “Export Terminal”) pursuant to section 3 of the Natural Gas Act (“NGA”). FERC’s order approving the Calcasieu Pass LNG project is its first authorization of a new LNG terminal in two years. Although LNG authorizations have been delayed by disagreements among Commissioners on how to evaluate GHG emissions, Chairman Chatterjee has expressed confidence that the Commission has found a path forward for addressing climate change issues. Nonetheless, given the concerns raised by two of the currently four-member Commission, the LNG industry should closely monitor the Commission’s decisions in this area.
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