FERC proposes ending routine air-dispersion modeling in natural-gas NEPA reviews

The Federal Energy Regulatory Commission on Thursday released a draft policy statement proposing to stop asking natural-gas project developers for air-dispersion modeling, and to stop relying on that modeling in its environmental reviews under the National Environmental Policy Act.

The proposed shift could change how FERC reviews interstate natural-gas pipelines and liquefied natural gas facilities, and is part of the agency’s broader push to speed permitting by relying more heavily on air permitting overseen by the Environmental Protection Agency and state regulators under the Clean Air Act.

In its Oct. 15 release, FERC said the draft policy statement, filed as Docket No. PL26-3-000, would apply to projects reviewed under the Natural Gas Act. “The draft policy statement proposes to no longer request air dispersion modeling from applicants for Natural Gas Act (NGA) projects or rely on this modeling in assessing operational air quality effects under NEPA,” the commission said.

FERC said it is not proposing to stop reviewing air effects altogether. Instead, it said it would analyze air-quality impacts using other information submitted by applicants and identified by commission staff, rather than treating applicant air-dispersion modeling as the default tool in those NEPA reviews.

The commission said the proposal reflects the existing Clean Air Act framework, under which EPA and state agencies are responsible for air permitting. FERC framed the change as a way to better align its NEPA review with its own statutory role and avoid duplicating responsibilities already assigned to other regulators.

The agency also said the draft policy is intended to streamline NEPA reviews and reduce delays for natural-gas infrastructure projects, though that remains FERC’s stated goal rather than an established outcome. Comments on the proposal are due Nov. 16.

Because the document is a draft policy statement, it does not by itself create a final, binding change. But it marks a notable procedural shift for an agency whose environmental reviews of gas projects have often relied on air-dispersion modeling in the past.

NEPA requires federal agencies to examine the environmental effects of major federal actions. FERC, an independent federal agency that approves certain natural-gas pipelines and LNG facilities under the Natural Gas Act, said the draft policy also reflects the changing legal landscape around environmental review, including recent Supreme Court guidance narrowing the scope of some agency analysis and broader federal efforts to streamline permitting.

Chair Laura V. Swett cast the move as part of that streamlining agenda. “From my first day as Chairman, streamlining NEPA reviews has been one of my top priorities. Today’s landmark draft policy statement is a defining step in our mission to cut unnecessary delays and deliver regulatory certainty,” Swett said in FERC’s release.