Sierra Club v. FERC

68 F.4th 630
CourtCourt of Appeals for the D.C. Circuit
DecidedMay 26, 2023
Docket20-1512
StatusPublished
Cited by2 cases

This text of 68 F.4th 630 (Sierra Club v. FERC) 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
Sierra Club v. FERC, 68 F.4th 630 (D.C. Cir. 2023).

Opinion

United States Court of Appeals FOR THE DISTRICT OF COLUMBIA CIRCUIT

Argued April 7, 2022 Decided May 26, 2023

No. 20-1512

SIERRA CLUB, ET AL., PETITIONERS

v.

FEDERAL ENERGY REGULATORY COMMISSION, RESPONDENT

EQUITRANS, L.P., ET AL., INTERVENORS

Consolidated with 21-1040

On Petitions for Review of Orders of the Federal Energy Regulatory Commission

Benjamin A. Luckett argued the cause for petitioners. With him on the briefs were Elizabeth F. Benson and Julie Gantenbein.

Matthew W.S. Estes, Attorney, Federal Energy Regulatory Commission, argued the cause for respondent. With him on the brief were Matthew R. Christiansen, General Counsel, and 2 Robert H. Solomon, Solicitor. Scott R. Ediger, Attorney Advisor, entered an appearance.

Jeremy C. Marwell argued the cause for respondent- intervenors Mountain Valley Pipeline, LLC, et al. With him on the joint brief were Matthew Eggerding, Matthew X. Etchemendy, James T. Dawson, Jennifer Leigh Flint Brough, Thomas Knight, Randall S. Rich, Valerie Layne Green, Charlotte Taylor, and James Olson.

Before: SRINIVASAN, Chief Judge, MILLETT and WILKINS, Circuit Judges.

Opinion for the Court filed by Chief Judge SRINIVASAN.

SRINIVASAN, Chief Judge: For years, Mountain Valley Pipeline, LLC has been trying to build its eponymous Mountain Valley Pipeline through West Virginia and Virginia. In 2017, the Federal Energy Regulatory Commission first issued a certificate approving the project. Our court affirmed that order. But to build an interstate natural gas pipeline, a company often needs additional federal permits from agencies other than the Commission. Mountain Valley needed approvals from the Bureau of Land Management, Forest Service, Army Corps of Engineers, and Fish and Wildlife Service. While Mountain Valley initially obtained each of those additional permits, the United States Court of Appeals for the Fourth Circuit vacated all of them over time.

The Commission responded with a series of follow-up orders. As Mountain Valley reacquired permits from the other agencies, the Commission extended the deadline for completing construction and authorized work to resume. Several environmental groups now petition for review of the Commission’s orders allowing the project to proceed. 3

We deny most of their claims and conclude that one is moot. But we agree with one of the claims: that the Commission inadequately explained its decision not to prepare a supplemental environmental impact statement addressing unexpectedly severe erosion and sedimentation along the pipeline’s right-of-way. While we grant the petitions for review in part on that ground, we do not vacate the Commission’s orders allowing work on the project to resume. Instead, we remand the orders without vacatur to enable the Commission either to prepare a supplemental environmental impact statement or to better explain why one is unnecessary.

I.

A.

The Natural Gas Act authorizes the Federal Energy Regulatory Commission to regulate the interstate transportation of natural gas. 15 U.S.C. § 717. A company desiring to build a natural gas pipeline must first obtain a certificate of “public convenience and necessity” from the Commission. Id. § 717f(c).

The Commission’s certificate process incorporates review of proposed projects under the National Environmental Policy Act (NEPA), 42 U.S.C. § 4321 et seq. See Food & Water Watch v. FERC, 28 F.4th 277, 282 (D.C. Cir. 2022). NEPA “declares a broad national commitment to protecting and promoting environmental quality, and brings that commitment to bear on the operations of the federal government.” Sierra Club v. FERC, 867 F.3d 1357, 1367 (D.C. Cir. 2017) (quotation marks and citation omitted). To that end, NEPA requires federal agencies to “identify the reasonable alternatives to a contemplated action and look hard at the 4 environmental effects of their decisions.” City of Bos. Delegation v. FERC, 897 F.3d 241, 246 (D.C. Cir. 2018) (alteration, quotation marks, and citation omitted).

Agencies first prepare a draft environmental impact statement discussing the effects of the proposed action and of reasonable alternatives. 40 C.F.R. § 1502.9(b). A final environmental impact statement then accompanies an agency’s ultimate decision. Id. § 1502.9(c). But an agency’s obligations under NEPA do not always end there. An agency must supplement its environmental analysis if “substantial changes to the proposed action” or “significant new circumstances or information” raise additional concerns about the action’s environmental impact. Id. § 1502.9(d)(1)(i)–(ii).

B.

In 2017, the Commission issued a certificate of public convenience and necessity for the Mountain Valley Pipeline. Order Issuing Certificates and Granting Abandonment Authority, Mountain Valley Pipeline, LLC, 161 FERC ¶ 61,043 (Oct. 13, 2017) (Certificate Order), J.A. 86–221. The Pipeline would carry natural gas 303.5 miles across the Appalachian Mountains, from Wetzel County, West Virginia, to an interconnection with a compressor station in Pittsylvania County, Virginia. The Commission determined that Mountain Valley had shown market demand for the Pipeline based on five shipping contracts, known as precedent agreements, covering the Pipeline’s full capacity.

In its final environmental impact statement, the Commission recognized that construction of the Pipeline would cause at least some soil erosion and sedimentation. To build the Pipeline, Mountain Valley would clear a 125-foot- wide corridor along the route, which would expose the soil to 5 wind and rain. The company would then dig or blast a trench in which to bury the Pipeline, dislodging more dirt for runoff. And much of the construction would occur near and across waterbodies. In those circumstances, sedimentation would be unavoidable. But the Commission concluded in the environmental impact statement that control measures such as silt fences would minimize effects on waterbodies. And in the end, Mountain Valley planned to return the route to as close to its original state as practicable. The Certificate Order adopted the final environmental impact statement and declared the Pipeline “environmentally acceptable.” Id. ¶ 308.

When approving the project, the Commission also imposed conditions concerning when construction could begin and by when it needed to end. At the front end, the Certificate Order’s Environmental Condition 9 required Mountain Valley, “before commencing construction of any project facilities,” to submit “documentation that it has received all applicable authorizations required under federal law.” Certificate Order, App. C, Environmental Condition 9. At the back end, the Commission directed Mountain Valley to complete construction within three years, by October 13, 2020. Certificate Order ¶ 310.

Several environmental groups petitioned our court for review of the Certificate Order. We rejected their challenge. Appalachian Voices v. FERC, Nos. 17-1271, 18-1002, 18- 1175, 18-1177, 18-1186, 18-1216, 18-1223, 2019 WL 847199 (D.C. Cir. Feb. 19, 2019) (per curiam). We concluded that the Commission had reasonably found a market need for the Pipeline based on the “precedent agreements for 100 percent of the Project’s capacity.” Id. at *1. As for the order’s environmental analysis, we determined that the Commission had “adequately considered and disclosed erosion and sedimentation impacts on aquatic resources.” Id. at *2. 6

C.

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Bluebook (online)
68 F.4th 630, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sierra-club-v-ferc-cadc-2023.