Twp. of Bordentown v. Fed. Energy Regulatory Comm'n

903 F.3d 234
CourtCourt of Appeals for the Third Circuit
DecidedSeptember 5, 2018
Docket17-1047; 17-3207
StatusPublished
Cited by33 cases

This text of 903 F.3d 234 (Twp. of Bordentown v. Fed. Energy Regulatory Comm'n) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Twp. of Bordentown v. Fed. Energy Regulatory Comm'n, 903 F.3d 234 (3d Cir. 2018).

Opinion

CHAGARES, Circuit Judge.

I. Introduction...242

II. Background...243

A. Statutory Background...243

B. Procedural History...244

III. Challenges to FERC's Orders...246

A. Interpreting the CWA...246

B. NEPA Challenges...248

1. Segmentation of PennEast...248
2. Consideration of the SRL...251
3. Potable Well Impacts...258

C. Need for the Project...261

D. Good Faith Notice...263

E. Green Acres Act...264

F. Cumulative Error...266

IV. Challenges to the NJDEP's Order...266

A. Jurisdiction Under the NGA...266

B. New Jersey Law...269

V. Conclusion...272

I. Introduction

This consolidated appeal considers a bevy of challenges brought by the Township of Bordentown, Township of Chesterfield, *243 and Pinelands Preservation Alliance's ("PPA") (collectively, the "petitioners"), seeking to prevent the expansion of interstate natural gas pipeline facilities operated by the Transcontinental Pipe Line Company, LLC ("Transco"). 1 The petitioners contend that the Federal Energy Regulatory Commission ("FERC") violated the federal statute governing the approval and construction of interstate pipelines, as well as other generally applicable federal environmental protection statutes, by arbitrarily and capriciously approving Transco's proposed project. The petitioners further maintain that the New Jersey Department of Environmental Protection ("NJDEP") violated New Jersey law by (1) improperly issuing to Transco various permits that Transco was required under federal law to obtain before it could commence construction activities on the pipeline project, and (2) denying the petitioners' request for an adjudicatory hearing to challenge the permits' issuance, based only on the NJDEP's allegedly incorrect belief that the New Jersey regulations establishing the availability of such hearings were preempted by federal law.

As explained more fully below, although we conclude that the petitioners' challenges to FERC's orders lack merit, we agree that the NJDEP's interpretation of the relevant federal law was incorrect, thus rendering unreasonable the sole basis for its denial of the petitioners' request for a hearing. Given our disposition, we do not reach the petitioners' substantive challenges to the NJDEP's provision of the permits, which-assuming a hearing is granted-we leave for the NJDEP to address in the first instance. We accordingly will deny in part and grant in part the petitions for review, and we will remand to the NJDEP for proceedings consistent with this opinion.

II. Background

This case presents challenges to both the federal and state governments' treatment of Transco's application to construct its interstate pipeline project. Before detailing the agency proceedings that preceded this appeal, we first briefly set forth the various interlocking federal and state regulatory schemes at play, which this Court has already elucidated in some detail. See Del. Riverkeeper Network v. Sec'y of Pa. Dep't of Envtl. Prot. , 870 F.3d 171 , 174 (3d Cir. 2017) (" Delaware II "); Del. Riverkeeper Network v. Sec'y Pa. Dep't of Envtl. Prot. , 833 F.3d 360 , 367-69 (3d Cir. 2016) (" Delaware I ").

A. Statutory Background

Under the Natural Gas Act of 1938 ("NGA"), 15 U.S.C. §§ 717 - 717z, FERC is tasked with regulating the construction and operation of interstate natural gas pipelines. Id. §§ 717f, 717n. If FERC determines that a given project should proceed, it will issue a "certificate of public convenience and necessity" (the "certificate"), which in turn is conditioned on the pipeline operator acquiring other necessary state and federal authorizations. See Delaware I , 833 F.3d at 367-68 . Among the regulatory schemes related to the NGA are the federal environmental laws, including the National Environmental Policy Act ("NEPA"), 42 U.S.C. §§ 4321 - 4370h, and the Clean Water Act ("CWA"), 33 U.S.C. §§ 1251 - 1388. NEPA is primarily a procedural statute that requires FERC to assess "the potential environmental impact of a proposed pipeline *244 project." Delaware I , 833 F.3d at 368 . Upon completing the analysis, FERC must issue either an Environmental Assessment ("EA," if the analysis indicates that the project will have no significant environmental impacts) or an Environmental Impact Statement ("EIS," if the analysis indicates that the project will be a " 'major Federal action' that would 'significantly affect[ ] the quality of the human environment' "). Del. Riverkeeper Network v. U.S. Army Corps of Eng'rs , 869 F.3d 148 , 152 (3d Cir. 2017) (quoting 42 U.S.C. § 4332 (C) ). As to the CWA, although the NGA explicitly "preempts state environmental regulation of interstate natural gas facilities," it "allows states to participate in environmental regulation of these facilities under ...

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Bluebook (online)
903 F.3d 234, Counsel Stack Legal Research, https://law.counselstack.com/opinion/twp-of-bordentown-v-fed-energy-regulatory-commn-ca3-2018.