Minisink Residents for Environmental Preservation & Safety v. Federal Energy Regulatory Commission

762 F.3d 97, 180 Oil & Gas Rep. 1118, 412 U.S. App. D.C. 97, 2014 WL 3973124, 79 ERC (BNA) 1513, 2014 U.S. App. LEXIS 15672, 44 Envtl. L. Rep. (Envtl. Law Inst.) 20190
CourtCourt of Appeals for the D.C. Circuit
DecidedAugust 15, 2014
Docket12-1481, 13-1018
StatusPublished
Cited by41 cases

This text of 762 F.3d 97 (Minisink Residents for Environmental Preservation & Safety v. Federal Energy Regulatory Commission) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Minisink Residents for Environmental Preservation & Safety v. Federal Energy Regulatory Commission, 762 F.3d 97, 180 Oil & Gas Rep. 1118, 412 U.S. App. D.C. 97, 2014 WL 3973124, 79 ERC (BNA) 1513, 2014 U.S. App. LEXIS 15672, 44 Envtl. L. Rep. (Envtl. Law Inst.) 20190 (D.C. Cir. 2014).

Opinion

Opinion for the Court filed by Circuit Judge WILKINS.

WILKINS, Circuit Judge:

Given the choice, almost no one would want natural gas infrastructure built on their block. “Build it elsewhere,” most would say. The sentiment is understandable. But given our nation’s increasing demand for natural gas (and other alternative energy sources), it is an inescapable fact that such facilities must be built somewhere. Decades ago, Congress decided to vest the Federal Energy Regulatory Commission with responsibility for overseeing the construction and expansion of interstate natural gas facilities. And in carrying out that charge, sometimes the Commission is faced with tough judgment calls as to where those facilities can and should be sited. These petitions present one such example.

In July 2012, the Commission approved a proposal for the construction of a natural gas compressor station in the Town of Minisink, New York. Many local residents, hoping to thwart that result, banded together to fight the compressor station’s development. They formed a group called “Minisink Residents for Environmental Preservation and Safety” (“MREPS”) and mounted a vigorous, but ultimately unsuccessful, campaign opposing the project. Undeterred, MREPS and several of its individual members now petition for our *101 intervention. In doing so, they mainly argue that the Commission’s approval of the project was arbitrary and capricious, particularly given the existence of a nearby alternative site they insist is better than the Minisink locale green-lighted by FERC. They also assail some of the Commission’s procedural calls along the way. Though we respect the concerns they raise, we conclude that, as a legal matter, the Commission’s decisions were both reasonable and reasonably explained. Consequently, we deny the petitions for review.

I.

We begin with a quick overview of the regulatory framework, before turning to the particulars of these petitions.

A.

Congress enacted the Natural Gas Act, ch. 556, 52 Stat. 821 (1938) (codified as amended at 15 U.S.C. §§ 717-717z), with the principal aim of “encourag[ing] the orderly development of plentiful supplies of ... natural gas at reasonable prices,” NAACP v. Fed. Power Comm’n, 425 U.S. 662, 669-70, 96 S.Ct. 1806, 48 L.Ed.2d 284 (1976), and “protecting] consumers against exploitation at the hands of natural gas companies,” Fed. Power Comm’n v. Hope Natural Gas Co., 320 U.S. 591, 610, 64 S.Ct. 281, 88 L.Ed. 333 (1944). Along with those main objectives, there are also several “ ‘subsidiary purposes’ ” behind the NGA’s passage, “including] ‘conservation, environmental, and antitrust’ issues.” Pub. Utils. Comm’n of Cal. v. FERC, 900 F.2d 269, 281 (D.C.Cir.1990) (quoting NAACP, 425 U.S. at 670 & n. 6, 96 S.Ct. 1806).

The Act vests FERC with broad authority to regulate the transportation and sale of natural gas in interstate commerce. 15 U.S.C. §§ 717b, 717c; see also Schneidewind v. ANR Pipeline Co., 485 U.S. 293, 301, 108 S.Ct. 1145, 99 L.Ed.2d 316 (1988) (“FERC exercises authority over the rates and facilities of natural gas companies used in [interstate] transportation and sale.”). To achieve this objective, Congress equipped the Commission with a variety of regulatory tools, one of which captures the focus of our review today.

Under Section 7(c) of the Act, before an applicant can construct or extend an interstate facility for the transportation of natural gas, it must obtain a “certifícate of public convenience and necessity” from the Commission. 15 U.S.C. § 717f(c)(l)(A); Dominion Transmission, Inc. v. Summers, 723 F.3d 238, 240 (D.C.Cir.2013). The statute provides that a certificate “shall be issued to any qualified applicant” upon a finding that “the applicant is able and willing properly to do the acts and to perform the service proposed ... and that the proposed service” and “construction ... is or will be required by the present or future public convenience and necessity.” 15 U.S.C. § 717f(e). FERC may, in issuing such a certificate, attach “such reasonable terms and conditions as the public convenience and necessity may require.” Id.; Murray Energy Corp. v. FERC, 629 F.3d 231, 234 (D.C.Cir.2011).

The Commission has issued a policy statement outlining the criteria it considers in reviewing such certificate applications. Certification of New Interstate Natural Gas Pipeline Facilities, 88 FERC ¶ 61,227 (Sept. 15, 1999), clarified, 90 FERC ¶ 61,128 (Feb. 9, 2000), further clarified, 92 FERC ¶ 61,094 (July 28, 2000) (“Certificate Policy Statement ”). The Commission will first confirm “whether the project can proceed without subsidies from the[ ] existing [pipeline’s] customers.” Id., 88 FERC ¶ 61,227, at 61,745. Then, it will “balane[e] the public benefits against the adverse effects of the project.” Id., 90 *102 FERC ¶ 61,128, at 61,396. FERC will approve a project only “where the public benefits of the project outweigh the project’s adverse impacts.” Id.; see also Fla. Gas Transmission Co. v. FERC, 604 F.3d 636, 649 (D.C.Cir.2010) (Brown, J., concurring in part and dissenting in part) (summarizing the factors examined under FERC’s Certificate Policy Statement). 1

In conjunction with the certificating process, the Commission must also complete an environmental review of the proposed project, as mandated by the National Environmental Policy Act (NEPA), 42 U.S.C. §§ 4321-4370h. E.g., Midcoast Interstate Transmission, Inc. v. FERC, 198 F.3d 960, 967 (D.C.Cir.2000). Simply stated, the Commission’s NEPA obligation requires that it “ ‘identify the reasonable alternatives to the contemplated action’ and ‘look hard at the environmental effects of [its] decision[ ].’ ” Id. (quoting Corridor H Alternatives, Inc. v. Slater, 166 F.3d 368, 374 (D.C.Cir.1999)) (alterations in original).

B.

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Bluebook (online)
762 F.3d 97, 180 Oil & Gas Rep. 1118, 412 U.S. App. D.C. 97, 2014 WL 3973124, 79 ERC (BNA) 1513, 2014 U.S. App. LEXIS 15672, 44 Envtl. L. Rep. (Envtl. Law Inst.) 20190, Counsel Stack Legal Research, https://law.counselstack.com/opinion/minisink-residents-for-environmental-preservation-safety-v-federal-cadc-2014.