Sierra Club v. Federal Energy Regulatory Commission

ELR Citation: 52 ELR 20075
No(s). 20-1427 (D.C. Cir. Jun 28, 2022)

The D.C. Circuit denied environmental groups' petition to review FERC's order approving an extension of a natural gas pipeline into North Carolina. The groups specifically challenged the order's approved return on equity rate and the adequacy of the Commission's EIS, arguing that FERC should not have granted a higher rate of return because the extension was not a new project and that the EIS failed to take a "hard look" at the environmental consequences with regard to sedimentation and erosion. The court found FERC specifically noted that its reasoning for approving lower return on equity rates in extensions of existing pipelines did not apply here because this pipeline did not have an existing revenue base or a proven track record, and that the EIS discussed in sufficient detail potential mitigation measures for erosion and runoff. It denied the groups' petition.

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