D.C. Circuit Rules Against FERC Approval of LNG and Pipeline Projects in South Texas

(Washington, DC) — On Tuesday, Aug. 6, the D.C. Circuit Court issued a decision that effectively cancels the previous approval of three harmful methane gas projects in South Texas by the Federal Energy Regulatory Commission (FERC), marking the first time a court has vacated FERC approval of an LNG terminal. 

In 2023, FERC reapproved Rio Grande LNG, Texas LNG, and the Rio Bravo pipeline, despite widespread concerns for the harm the projects would cause to the surrounding communities and the climate. The Sierra Club, the City of Port Isabel, the Carrizo/Comecrudo Tribe of Texas, and Vecinos para el Bienestar de la Comunidad Costera sued FERC for failing to adequately consider the environmental justice impacts and greenhouse gas emissions of the three projects, as required by the National Environmental Policy Act and the Natural Gas Act. Today the court upheld most of the petitioners’ arguments and vacated FERC’s approvals. FERC will now have to reconsider the impacts of all three projects, with a new draft supplemental environmental impact statement and a new public comment period, before deciding whether to issue new project permits. 

Advocates and residents of South Texas have long opposed these three projects due to the impacts on Indigenous land, public health, and the surrounding environment. If built, Rio Grande LNG, Texas LNG, and the Rio Bravo pipeline would destroy endangered species habitats and numerous acres of wetlands that are sacred to the Carrizo/Comecrudo, and would release hazardous chemicals into the air that have been linked to asthma, cancer, and other health conditions. The projects would also pose explosion and leak risks that harm people and wildlife and would emit millions of tons per year of climate-warming greenhouse gases, thus contributing to climate change while communities in South Texas feel the real consequences of extreme heat and storms.

This decision paired with two other decisions in July call into question the adequacy of FERC reviews. Last week, the D.C. Circuit Court ruled that FERC failed to consider increased greenhouse gas emissions and the market need for a Regional Energy Access Expansion (REAE) fracked gas pipeline project in the Northeast. And earlier in July, the same court ruled that FERC failed to adequately assess Commonwealth LNG’s air pollution impacts and greenhouse gas emissions. As fossil fuel corporations continue to propose expansions of facilities that put air and water at risk of pollution only to line their pockets, it is unacceptable for FERC to conduct insufficient environmental justice analysis and to decline to make determinations on the significance of climate-warming emissions.
 

STATEMENTS

Nathan Matthews, senior attorney for the Sierra Club

“This decision affirms what South Texas communities have long known and been fighting for: Environmental justice matters and FERC absolutely must consider these issues when deciding on such massively harmful projects. Today the court said that FERC must look at impacts on these communities and also ensure that they have a full and meaningful opportunity to participate in the process. FERC failed to do that with these projects. FERC also postponed analyzing NextDecade’s proposal to add carbon capture and sequestration, but the court said the agency cannot abdicate its responsibility to decide whether carbon capture is a good idea. Today marks a win for environmental justice in South Texas – and for people across the country pushing FERC to consider environmental justice impacts. This is the third time in a month that the D.C. Circuit has held that FERC failed to exercise oversight over gas infrastructure, suggesting that the days of FERC acting as a rubber stamp could soon be over.”
 

Juan Mancias, tribal chairman of the Carrizo/Comecrudo Tribe of Texas

“This is a victory for our ancestors and for the land. I feel proud to be Esto’k Gna; proud to be Carrizo Comecrudo. I feel proud to continue to fight for and protect our sacred homelands, our ancestors, and our histories. We continue to resist colonization, genocide, and erasure. In this case, we continue to resist ongoing colonization by the fossil fuel industry and against the Rio Grande LNG and Texas LNG projects. Fossil fuel companies habitually lie to regulators in order to get permits to make their money and to destroy the earth and our future generations as well. FERC and other regulatory agencies must stop listening to oil and gas companies and must instead listen to the original Native people of the land. Federal agencies must also do their own independent due diligence and research on all permits and not be dependent on false archeological and false solutions reports from gluttonous fossil fuel corporations.”
 

Jared Hockema, city manager for the City of Port Isabel

“Today’s decision is a great victory in our battle to protect public safety and preserve our environment and quality of life. We are very pleased that the D.C. Circuit Court agreed with our position that the development of these LNG facilities would adversely affect our community, and that the impact of these adverse effects had not been adequately considered. In fact, the court found that the permits for these facilities were issued despite FERC’s recognition of these impacts. Furthermore, today’s decision vindicates our longstanding position that the cumulative impacts of functionally dependent facilities must be considered, which removes a polluter’s loophole.
This latest setback for corporate polluters is a clear sign that these LNG projects should be abandoned, and the damage that’s already been caused should be cleaned up. We are calling on the LNG developers and the Port of Brownsville to do just that.
The fight to preserve our environment continues, and we look forward to supporting each other as we continue these worthwhile efforts.”
 

Bekah Hinojosa, with the South Texas Environmental Justice Network in Brownsville, Texas

“Our low-income Latine and Indigenous community has been working hard for the last 10 years to stop the LNG projects because they are environmental racism. We’ve organized protests, legal actions, and more to oppose Rio Grande LNG and Texas LNG, which would pollute the ship channel waters, the wildlife refuge, and low-income neighborhoods. Thanks to many years of organizing, we’ve achieved significant victories: The court has decided to halt the LNG projects, and the insurance company Chubb has dropped Rio Grande LNG.”
 

Dave Cortez, director of the Sierra Club Lone Star Chapter

“This is a major victory for working class people of the Rio Grande Valley, the Carrizo Comecrudo Tribal Nation, and the growing alliance they’ve built of everyday Texans and supporters across the country and world. Organizers, tribal leaders, and community members have stood strong in defense of the special lands of the RGV and supported communities navigating the pressures of the climate crisis, deep poverty, militarization, and colonial space exploration. I’m so thankful for them and the attorneys who stood strong in court and persisted despite years of silence and outright support for climate injustice from most major public officials in the valley. Today is a win for the people, the land, and our future.”