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West Coast Dems feud over feds’ pipeline approval

Presented by Chevron: Your guide to the political forces shaping the Energy transformation
Oct 20, 2023 View in browser
 

By Minho Kim and Arianna Skibell

Presented by Chevron

Willie Phillips, acting chair of the Federal Energy Regulatory Commission, testifies during a Senate Energy and Natural Resources Committee hearing in May. | Francis Chung/POLITICO

The federal agency charged with overseeing the nation's energy system just approved a spate of natural gas pipelines, bringing complaints from Democrats that it’s threatening blue states' ambitious climate goals.

Among the projects the Federal Energy Regulatory Commission OK’d on Thursday is the Gas Transmission Northwest XPress Project from TC Energy in the Pacific Northwest. That fueled angry responses from West Coast Democrats concerned about their states’ climate goals, write Jason Plautz and Zach Bright.

The strongest rebuke came from Sen. Jeff Merkley (D-Ore.), who criticized the commission as a “completely captured agency” and “one huge rubber stamp.” Democratic Washington Gov. Jay Inslee followed, saying he was discussing legal options to block the gas project.

“It’s just inconsistent with what the West Coast is doing in trying to develop a clean energy economy,” Inslee said in an interview Thursday. “It strikes right at the heart of our West Coast plans.”

Several environmental groups said they will challenge the ruling on the pipeline.

The approved pipeline project would allow Idaho, Washington and Oregon to import 150 million cubic feet of extra natural gas per day, when the Northwest states are scrambling to meet their climate targets.

Both Washington and Oregon are aiming to cut carbon emissions by 45 percent compared with 1990 levels. The Biden administration, meanwhile, has pledged to cut greenhouse gas emissions in half by the same year compared with 2005 numbers.

In previous comments to FERC, the attorneys general of California, Oregon and Washington said the commission had not done enough to evaluate climate impacts of the new gas project.

Congress, courts could be next
If FERC’s signoff is challenged, the agency will first rehear the case. If states and enviros still object to the final decision, they can take the agency to a federal appeals court.

Merkley went a step further and signaled that he will drive conversation in Congress to overhaul FERC, adding that the agency needs to be “scrapped” and “start over.” (That could be a tall order, considering that the House is both in Republican hands and lacks a speaker.)

“If our national policy is that we are going to take on climate change, we have to dump an agency that greenlights fossil fuel project after fossil fuel project,” Merkley said.

FERC is an independent agency but is not completely free of political influence, as the president nominates its five commissioners.

In May, as part of the debt ceiling deal, then-House Speaker Kevin McCarthy and President Joe Biden agreed to fast-track the Mountain Valley Pipeline. FERC approved the controversial 300-mile project from West Virginia to Virginia a month later, drawing a strong backlash from climate advocates.

 

Thank goodness it's Friday — thank you for tuning in to POLITICO's Power Switch. I'm your host, Arianna Skibell. Big thanks to Minho Kim for anchoring our top today. Power Switch is brought to you by the journalists behind E&E News and POLITICO Energy.

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Power Centers

Vineyard Wind erected its first turbine off the coast of Massachusetts this week. | Vineyard Wind

A blade of hope for offshore wind
America’s Offshore Wind Industry has been hammered by inflation and rising interest rates. But some developers are making progress despite the headwinds, writes Benjamin Storrow.

“In the long run we still see a lot more growth opportunities for the offshore wind industry. It’s just likely to grow on a longer and flatter trajectory than first envisioned by the Biden administration and the states,” Timothy Fox, an analyst who tracks the industry at ClearView Energy Partners, told Ben.

Developer scuttles CO2 pipeline
The developer planning a 1,300-mile network of carbon dioxide pipelines through the farm belt announced it’s scrapping the project, citing the “unpredictable nature of the regulatory and government processes” in two of the five states it would cross, writes Jeffrey Tomich.

The decision comes after South Dakota regulators denied a permit for the Heartland Greenway project across 112 miles on the state’s western edge.

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