FERC Greenhouse Gas and Environmental Justice Policy Act of 2025

Section 7(d) of the Natural Gas Act (15 U.S.C. 717f(d)) is amended by inserting, including a mitigation proposal described in subsection (i)(3), after contain such information.

Section 7 of the Natural Gas Act (15 U.S.C. 717f) is amended by adding at the end the following:

In finding whether a proposed action, to the extent that may be authorized by a certificate, is or will be required by the present or future public convenience and necessity under subsection (e), the Commission shall determine whether—

(A) the environmental effects of such proposed action, including any effects relating to the environment of such proposed action on environmental justice communities, are significant, and if such significant environmental effects, if any, can be mitigated pursuant to a mitigation proposal required under subsection (d);

(B) the significant environmental effects of the proposed action outweigh the benefits of the proposed action under paragraph (4); and

(C) the proposed action is necessary to ensure energy reliability and affordability.

In determining whether the environmental effects of a proposed action are significant under paragraph (1)(A), the Commission shall, with respect to such proposed action—

(i) evaluate such environmental effects on environmental justice communities under subparagraph (B); and

(ii) quantify reasonably foreseeable greenhouse gas emissions resulting from such proposed action under subparagraph (C).

The Commission shall evaluate the effects of a proposed action on environmental justice communities based on all evidence in the record, including—

(i) existing environmental and public health stressors;

(ii) any adverse environmental and public health stressors resulting from the proposed action;

(iii) the presence or absence of adverse cumulative stressors;

(iv) potential environmental and public health stressors associated with the proposed action; and

(v) other factors, as identified by the Commission and the affected environmental justice communities following a meaningful opportunity for public engagement by those communities.

The Commission shall quantify reasonably foreseeable greenhouse gas emissions resulting from a proposed action based on all evidence in the record, including—

(i) the projected capacity of the relevant pipelines to transport natural gas;

(ii) the projected utilization rate of the relevant pipelines;

(iii) the construction and operation of the proposed action;

(iv) the projected downstream greenhouse gas emissions and effects, including cumulative effects, including on environmental justice communities, resulting from the proposed action, including those resulting from the combustion of the natural gas;

(v) the projected upstream greenhouse gas emissions and effects, including cumulative effects, including on environmental justice communities, resulting from the proposed action, including those resulting from leakage or other release of the natural gas; and

(vi) other factors, as identified by the Commission.

For purposes of determining whether the environmental effects of a proposed action are significant under this paragraph, the Commission shall—

(i) with respect to environmental effects described in subparagraph (B), consider that—

(I) no community should bear a disproportionate share of the adverse environmental and public health consequences that results from the Commission approving an application for a certificate of public convenience or necessity; and

(II) it is in the public interest for the Commission, where appropriate, to limit the future placement and expansion of a proposed action in environmental justice communities; and

(ii) with respect to quantifying greenhouse gas emissions under subparagraph (C), presume—

(I) a proposed action that has reasonably foreseeable emissions of at least 100,000 metric tons per year of carbon dioxide equivalent to have a significant effect on climate change; and

(II) greenhouse gases other that carbon dioxide shall be converted to carbon dioxide equivalent using the 20-year global warming potentials from the most recent assessment report published by the Intergovernmental Panel on Climate Change.

Under subsection (d), the Commission shall require an applicant for a certificate to submit a proposal with the applicable application that details how the applicant will mitigate all or a portion of the environmental effects of the proposed action, including on climate change and environmental justice communities.

Upon reviewing the mitigation proposal under subparagraph (A), the Commission shall, to the extent practicable, attach to the issuance of a certificate, and to the exercise of the rights granted thereunder, conditions that require the holder of such certificate to address any potential adverse effects of any action authorized under such certificate on climate change and environmental justice communities.

For any proposed action the Commission approves for which it does not require conditions that mitigate or offset the significant environmental effects of the proposed action to below the significance threshold described in paragraph (2)(D), the Commission shall provide a detailed explanation as to why such mitigation is not practicable.

Under paragraph (1)(B), the Commission shall weigh all environmental effects, including significant environmental effects, to the extent any significant environmental effects can be practicably mitigated under the threshold described in paragraph (2)(D) and determine whether the benefits of the proposed action outweigh such environmental effects.

In the event the Commission finds that the proposed action is or will be required by the present or future public convenience and necessity under subsection (e) despite any significant environmental effects that cannot be practicably mitigated, the Commission shall provide a detailed explanation as to why the Commission finds the proposed action to be nevertheless required by the present or future public convenience and necessity.

In this subsection:

The term certificate means a certificate of public convenience and necessity described in subsection (c).

The term environmental effect means an effect caused by a proposed action on the environment and climate change.

The term environmental justice community means any population of color, community of color, indigenous community, or low-income community that experiences a disproportionate burden of the negative human health and environmental impacts of pollution or other environmental hazards.

The term proposed action means a proposed service, sale, operation, construction, extension, or acquisition, as described in subsection (e), in an application for a certificate.