ELR Citation: 51 ELR 20120
No(s). 20-1016 (D.C. Cir. Jun 22, 2021)

The D.C. Circuit vacated FERC's issuance of a certificate of public convenience and necessity for construction of a natural gas pipeline in the St. Louis area. An environmental group argued FERC's decision to award the certificate uncritically and exclusively relied on a precedent agreement between two affiliated companies to find need, and that the Commission failed to sufficiently justify its conclusion that the pipeline's benefits outweighed its adverse effects. The court agreed with the group that FERC's refusal to seriously engage with arguments challenging the probative weight of the precedent agreement did not evince reasoned and principled decisionmaking. It further found the Commission ignored evidence of self-dealing and failed to adequately balance public benefits and adverse impacts as required by its own policy. It therefore vacated FERC's decision and remanded to the Commission for appropriate action.