S. 3324: 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, aims to establish a clearer framework for how the Federal Energy Regulatory Commission (FERC) addresses the impacts of natural gas projects on climate change and environmental justice communities. The key components of the bill are as follows:

Greenhouse Gas and Environmental Justice Considerations

The bill amends the Natural Gas Act to require the FERC to evaluate and mitigate the environmental impacts of natural gas projects, focusing specifically on:

• Greenhouse Gas Emissions: The FERC must quantify and evaluate the greenhouse gas emissions resulting from proposed actions, including both upstream and downstream emissions associated with natural gas.
• Environmental Justice Communities: The FERC is required to assess how proposed actions affect communities that disproportionately face environmental risks, such as communities of color and low-income areas. This includes considering existing public health stresses and potential cumulative effects.

Mitigation Proposals

Under the bill, applicants for project certificates must submit a mitigation proposal that outlines strategies to reduce the environmental impacts of their projects. This includes:

• Detailing proposed measures to mitigate the significant environmental effects identified during the FERC's evaluation.
• Implementing conditions when issuing certificates that require adherence to these mitigation strategies.

Assessment of Environmental Effects

The FERC must determine whether the environmental implications of a proposed project are significant. This assessment will involve:

• Weighing the significance of identified environmental impacts against the benefits of the proposed action.
• Specifying a threshold for significant emissions, where projects emitting at least 100,000 metric tons per year of carbon dioxide equivalent will be deemed to have significant environmental effects.

Public Engagement and Transparency

The bill emphasizes the importance of public engagement, particularly involving affected environmental justice communities. The FERC is expected to provide opportunities for these communities to contribute input and insights on proposed actions and their potential impacts.

Explanations for Decisions

If the FERC decides to approve a project despite significant environmental effects that cannot be mitigated, it must provide a detailed explanation justifying its decision. This aims to ensure accountability in how environmental impacts are balanced against perceived public needs.

Definitions

The bill provides specific definitions for key terms such as:

• Certificate: A certificate of public convenience and necessity under which natural gas projects are authorized.
• Environmental Effect: The impact that a proposed action may have on the environment, including climate change.
• Environmental Justice Community: Populations that bear a disproportionate burden of environmental hazards, which may include communities of color and low-income groups.

Relevant Companies

• CHK - Chesapeake Energy Corporation: As a major player in the natural gas sector, changes in regulatory frameworks could impact its operational costs and project viability.
• CNX - CNX Resources Corporation: This company could face additional scrutiny and requirements related to environmental assessments and mitigation strategies for its natural gas projects.
• ET - Energy Transfer LP: Being involved in the transportation of natural gas, Energy Transfer might see regulatory changes in pipeline approvals and operational practices influenced by this bill.