American Oil and Gas Reporter - September 2016 - 117

White House Guidance Factors
Climate Into NEPA Reviews
WASHINGTON-A White House guidance on factoring climate change into
federal environmental reviews could
lengthen project reviews and incline agencies to favor conservation or alternative
energy options, according to an independent analysis.
The White House Council on Environmental Quality on Aug. 2 released a final
guidance document on how federal agencies
should consider the climate impacts of
their actions when performing National
Environmental Policy Act reviews.
According to the CEQ, the guidance:
* Advises agencies to quantify projected greenhouse gas emissions of proposed actions whenever the necessary
tools, methodologies and data inputs are
available;
* Encourages agencies to draw on their
experience and expertise to determine the
appropriate level (broad, programmatic, or
project- or site-specific) and extent of quantitative or qualitative analysis required;
* Counsels agencies to consider alternatives that would make the action
and affected communities more resilient
to climate change; and
* Reminds agencies to use existing
information and science when assessing
proposed actions.
The guidance document can be found
at https://www.whitehouse.gov/sites/whitehouse.gov/files/documents/nepa_finalghg_guidance.pdf.
Washington-based independent research and analysis firm ClearView Energy
Partners LLC says it interprets the guidance to "all but require agencies to quantify
GHG emissions (rather than rely on qualitative assessments)."
In addition, ClearView says, "(The
guidance) will be 'immediately operational,' implying that an agency's final
action could be subject to litigation risk
if it moves forward without addressing
GHGs."
The Wilderness Society greeted the
guidance with a statement that it would

"require agencies to address the full scope
of emissions associated with energy projects," adding that "agencies should manage-not just measure-the carbon consequences of energy leasing and production
on public lands."
Rhea Suh, president of the Natural Resources Defense Council, was quoted calling
the guidance "a game changer" that would
ensure federal agencies did not "approve
mines that will destroy the climate."
ClearView Energy Partners comments
that while the guidance does not specifically require agencies to conduct cumulative effects analyses, "it does emphasize
that agencies should look beyond federal
regulatory borders to assess impacts on
state climate-related goals."
Further, ClearView says, "The guidance
articulates a preference for programmatic
reviews that 'may also serve as an efficient
mechanism in which to assess federal
agency efforts to adopt broad-scale sustainable practices for energy efficiency,
GHG emissions avoidance and reduction
measures, petroleum product use reduction,
and renewable energy use.'"
Consequently, ClearView concludes,
"We would not rule out the possibility
that, depending on political leadership,
some permitting agencies may interpret
these . . . provisions as a pretext for
keeping fossil fuels 'in the ground.'"
The Center for Liquefied Natural Gas
worries the guidance "creates yet another
arbitrary hurdle for the industry."
However, ClearView suggests the document may not represent a significant
hurdle for natural gas pipeline projects
being reviewed by the Federal Energy
Regulatory Commission, "particularly if
state policies include a reliance on natural
gas generation to offset the retirement of
more GHG-intensive coal resources."
"LNG export projects may be able to
demonstrate favorable GHG-emission
profiles if the importing country would
move away from coal- or oil-fired generation," ClearView adds.
❒

Spectra Secures Contract For Mexican Gas Pipeline
HOUSTON-Spectra Energy Corp.
says Mexico's state-owned utility
Comisión Federal de Electricidad has
awarded its subsidiary, Valley Crossing
Pipeline LLC, a 168-mile intrastate natural
gas pipeline project contract. The pipeline
will serve 37 million customers beginning
in 2018.
Valley Crossing will construct and op-

erate a header system transporting more
than 5.0 billion cubic feet a day near the
Agua Dulce Hub in Nueces County, Tx.,
as well as a 2.6 Bcf/d pipeline originating
at that header and extending to
Brownsville, Tx., Spectra Energy says.
There, the pipeline will connect with the
Sur de Texas-Tuxpan Pipeline, which
will extend into Mexico.
❒

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SEPTEMBER 2016 117
American Oil and Gas Reporter - September 2016

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