FERC Proposes Streamlined Environmental Review for Natural Gas Projects, Reducing Air-Dispersion Modeling Requirements
The Federal Energy Regulatory Commission (FERC) issued a Draft Policy Statement on October 15, 2026, proposing significant changes to how it evaluates operational air emissions from interstate natural gas pipeline and liquefied natural gas (LNG) projects under the National Environmental Policy Act (NEPA). The proposal, Docket No. PL26-3-000, aims to streamline environmental reviews by no longer routinely requiring air-dispersion modeling. Instead, FERC would assess quantified operational emissions, existing air quality, applicable Clean Air Act (CAA) requirements and permits, and proposed mitigation measures. Compliance with CAA requirements would generally be considered sufficient to conclude that operational air emissions are not 'significant' for determining the need for an environmental impact statement (EIS). This move follows recent statutory amendments and the U.S. Supreme Court's decision in Seven County Infrastructure Coalition v. Eagle County.
