A federal court on Tuesday nullified the regulatory approval of the Transco gas pipeline expansion in New Jersey, citing insufficient consideration of the project's necessity and its impact on state laws aimed at reducing greenhouse gas emissions.
The unanimous decision by the U.S. Court of Appeals for the District of Columbia Circuit remands the case back to the Federal Energy Regulatory Commission (FERC) for further review.
The lawsuit was initiated by the New Jersey Conservation Foundation and others who argued that FERC’s 2023 decision overlooked environmental consequences. The project involves expanding an existing transmission line with 36 miles of new pipe in Pennsylvania and infrastructure upgrades in New Jersey.
The New Jersey Division of Rate Counsel also intervened, arguing there was no market need for expansion and that it conflicted with state law requiring a reduction in natural gas consumption.
The court stated, “FERC’s decision arbitrarily misconstrued New Jersey’s energy efficiency laws — which mandate sizeable and continuous reductions to natural gas usage by public utilities — as unenforceable. To the contrary, New Jersey law is mandatory and includes mechanisms for its enforcement.”
In addition to impacting state climate goals, FERC also fell short in reviewing market need and environmental consequences, according to the court.
“The project is a substantial gas pipeline expected to transport large quantities of natural gas from points of extraction to points of use for decades to come,” said the court. “The record estimates enormous GHG (greenhouse gas) emissions from the project for the next half century.”
FERC’s order discusses climate change and GHG emissions but does not explain how these emissions were considered among adverse effects balanced against expected benefits, according to the court.
Approximately 73.5% of gas from Transco’s Regional Energy Access Expansion project would go to New Jersey locations, with additional supply provided to Pennsylvania, New York, Delaware, and Maryland.
NJBIA Deputy Chief Government Affairs Officer Ray Cantor expressed disappointment over the ruling and hoped it would be reversed upon appeal.
“While we work on efforts to eventually decarbonize our economy, we need natural gas now and will for decades,” Cantor said. “Opponents of natural gas pipelines only put New Jersey residents in jeopardy during extreme weather conditions. Energy policy needs to be pragmatic, not ideological.”
