N.J. Conservation Found. v. Fed. Energy Regulatory Comm'n

353 F. Supp. 3d 289
CourtDistrict Court, D. New Jersey
DecidedOctober 29, 2018
DocketCiv. Action No. 17-11991(FLW)
StatusPublished
Cited by4 cases

This text of 353 F. Supp. 3d 289 (N.J. Conservation Found. v. Fed. Energy Regulatory Comm'n) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
N.J. Conservation Found. v. Fed. Energy Regulatory Comm'n, 353 F. Supp. 3d 289 (D.N.J. 2018).

Opinion

WOLFSON, United States District Judge:

In January 2018, defendant Federal Energy Regulatory Commission ("FERC" or "Commission"), issued an order granting third-party PennEast Pipeline Company, LLC ("PennEast") the right to construct and operate an interstate natural gas pipeline. Several parties to that agency proceeding, including Plaintiff New Jersey Conservation Foundation ("NJCF" or "Plaintiff"), have sought rehearing before the agency. While those requests were pending, NJCF brings this separate matter challenging FERC's purported ongoing pattern and practice of issuing certificates in violation of the Fifth Amendment of the United States Constitution.1 In the present matter, Defendants move to dismiss for lack of subject matter jurisdiction, arguing, inter alia , that FERC's authorizing statute, i.e. , the Natural Gas Act (the "NGA"), vests the courts of appeals with exclusive jurisdiction to hear the type of claims asserted by Plaintiff in this case. For the reasons set forth below, Defendants' motion to dismiss is GRANTED .

BACKGROUND and PROCEDURAL HISTORY

I. Statutory and Regulatory Background

FERC is an "independent regulatory commission comprising up to five members appointed by the President, with advice and consent of the U.S. Senate." Department of Energy Organization Act, 42 U.S.C. § 7171(a) - (b). Commissioners may serve up to five-year terms, and no more than three members of the Commission may be members of the same political party. § 7171(b)(1). Each member has one vote and actions are determined by majority vote. As a governmental agency, FERC is relegated with the authority to regulate the interstate transmission and wholesale sale of electricity and natural gas, and licenses the construction and operation of hydropower projects, natural gas pipelines, and the projects' infrastructure.

The NGA, 15 U.S.C. § 717, et seq. , confers on the Commission "exclusive jurisdiction" over the "transportation and sale of natural gas in interstate commerce."

*293Schneidewind v. ANR Pipeline Co. , 485 U.S. 293, 300-301, 108 S.Ct. 1145, 99 L.Ed.2d 316 (1988) (the NGA is a "comprehensive scheme of federal regulation"); see Del. Riverkeeper Network v. FERC, 243 F.Supp.3d 141, 144 (D.D.C. 2017). Section 7 of the Act governs the process for obtaining a certificate authorizing the construction, extension, or abandonment of natural gas pipeline facilities. See 15 U.S.C. § 717f ; Del. Riverkeeper , 243 F.Supp.3d at 144-45 (describing FERC certification process); Myersville Citizens for a Rural Cmty., Inc. v. FERC , 783 F.3d 1301, 1307-08 (D.C. Cir. 2015). The Commission may issue a certificate only if it finds that the proposed project "is or will be required by the present or future public convenience and necessity," and may attach to the certificate "such reasonable terms and conditions as the public convenience and necessity may require." 15 U.S.C. § 717f(e). The NGA also permits any person aggrieved by a FERC order to seek rehearing before the Commission within thirty days after the order's issuance. 15 U.S.C. § 717r(a). After FERC issues a rehearing order, a party aggrieved by that particular order may seek judicial review in the appropriate court of appeals. 15 U.S.C. § 717r(b). Importantly, the Act vests jurisdiction in the U.S. Courts of Appeals to review final FERC orders and all matters inhering in a pipeline certificate. Id.

II. PennEast Pipeline Certificate2

In September 2015, PennEast submitted an application pursuant to the NGA, 15 U.S.C. § 717f(c), to construct and operate an interstate natural gas pipeline extending from Pennsylvania to New Jersey. Numerous parties, including Plaintiff, intervened in that FERC proceeding, in addition to submitting comments on the application to FERC. Upon filing PennEast's application, FERC's Office of Energy Projects (the "Office") initiated an environmental review process in accordance with the National Environmental Policy Act ("NEPA"), 42 U.S.C. § 4321, et seq. , to study the potential impact of the proposed pipeline. In that regard, the Office concluded that the proposed pipeline would result in some adverse effects, but they would be reduced to "less than significant levels" with the implementation of certain mitigation measures. See Final Environmental Impact Statement at ES-18. These proposed mitigation measures were recommended as conditions to any final authorization by FERC.

On January 19, 2018, FERC issued its Certificate Order of "public convenience and necessity," with one Commissioner dissenting, adopting the Office's findings. Consequently, FERC granted a Certificate to PennEast, subject to compliance with environmental and operating conditions. Thereafter, numerous parties, including Plaintiff, filed requests for agency rehearing. Plaintiff also moved to stay the Certificate Order.

Following the application for rehearing, FERC has the "power to grant or deny rehearing or to abrogate or modify its order without further hearing" within 30 days; otherwise the request is considered denied. 15 U.S.C. § 717r(a).

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Bluebook (online)
353 F. Supp. 3d 289, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nj-conservation-found-v-fed-energy-regulatory-commn-njd-2018.