H.R. 6378: FERC Greenhouse Gas and Environmental Justice Policy Act of 2025

This bill, known as the FERC Greenhouse Gas and Environmental Justice Policy Act of 2025, seeks to modify the authority and responsibilities of the Federal Energy Regulatory Commission (FERC) regarding the assessment of environmental impacts and greenhouse gas emissions associated with natural gas projects.

Key Provisions

• Mitigation Requirements: The bill mandates that when companies apply for certificates to undertake natural gas projects, they must provide proposals outlining how they will mitigate any significant environmental effects, particularly those affecting climate change and environmental justice communities.
• Significant Environmental Effects Assessment: FERC must evaluate the potential environmental impacts of proposed actions, particularly their effects on environmental justice communities. It will require an assessment of existing environmental and public health stressors, and any new stressors introduced by the project.
• Quantification of Greenhouse Gas Emissions: The bill requires FERC to quantify the anticipated greenhouse gas emissions that would arise from proposed actions, including emissions from both upstream (production) and downstream (consumption) phases.
• Threshold Significance: A proposed action that results in at least 100,000 metric tons of carbon dioxide equivalents per year will be considered to have a significant effect on climate change. The bill establishes guidelines for evaluating whether environmental effects are significant and how they can be mitigated.
• Public Engagement: The bill emphasizes the need for meaningful opportunities for public engagement, particularly with affected environmental justice communities, to ensure that their voices are heard and considered in the decision-making process.
• Benefits vs. Environmental Effects: If significant environmental effects exist, FERC must weigh these against the benefits of the proposed action. This evaluation will consider whether such adverse effects can be mitigated and under what conditions the project may proceed despite its impacts.
• Detailed Justifications: If FERC approves a project without sufficient mitigation measures, the agency must provide a detailed justification explaining why it was not practicable to require those measures.

Definitions

• Certificate: Refers to the certificate of public convenience and necessity that is required for natural gas projects.
• Environmental Justice Community: Defined as low-income, indigenous, or communities of color that disproportionately suffer from environmental health and pollution burdens.
• Proposed Action: Encompasses any action related to service, sales, operations, construction, and acquisitions that require a certificate from FERC.

Overall, the bill seeks to enhance FERC’s role in ensuring that natural gas projects take into account their potential environmental impacts, particularly on vulnerable communities, and establishes a structured process for assessing and mitigating these impacts as part of the regulatory framework.

Relevant Companies

• DVN (Devon Energy Corporation) - As a natural gas producer, Devin's projects may require more stringent assessment and mitigation strategies under this legislation.
• CHK (Chesapeake Energy Corporation) - This company is involved in the exploration and production of natural gas. The bill could impact their regulatory framework when seeking project approvals.
• NEE (NextEra Energy, Inc.) - As a major utility and energy provider, NextEra may need to adapt its operations to comply with the stricter environmental assessments mandated by this bill.