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FERC proposes ending air dispersion modeling in gas project reviews, comments due November 16

The Federal Energy Regulatory Commission on October 15 unveiled a draft policy statement that would stop requesting air dispersion modeling from applicants for Natural Gas Act projects and stop relying on that modeling when assessing operational air quality effects under the National Environmental Policy Act. The proposal, Item C-2 in Docket PL26-3-000, applies to natural gas pipeline and LNG authorization reviews. It is a proposal open for comment, not a final rule.

By Greener Numbers Editorial Team · Published October 17, 2026 · Updated 10/17/2026

The Federal Energy Regulatory Commission on October 15 unveiled a draft policy statement that would stop requesting air dispersion modeling from applicants for Natural Gas Act projects and stop relying on that modeling when assessing operational air quality effects under the National Environmental Policy Act. The proposal, Item C-2 in Docket PL26-3-000, applies to natural gas pipeline and LNG authorization reviews. It is a proposal open for comment, not a final rule.

The commission says the change recognizes that the Clean Air Act's permitting programs, run by the Environmental Protection Agency and state agencies, already regulate air quality, and that duplicating that analysis under NEPA adds delay. FERC says it would instead use other information submitted by applicants and identified by staff to analyze air quality effects, and would continue to disclose adverse environmental effects in NEPA documents.

Chairman Laura V. Swett called the draft statement a defining step in cutting unnecessary delays and delivering regulatory certainty, saying streamlining NEPA reviews has been a top priority since her first day as chairman. The commission is accepting comments on implementing the draft policy statement through November 16, 2026.

Commissioner Judy Chang dissented. She wrote that the new method departs from the commission's current court-affirmed approach and would leave the commission with insufficient information about the severity of local air quality and human-health effects, while denying the public an in-depth understanding of a project's emissions and whether adverse impacts would reach their communities.

Chang also argued the order tests a novel legal theory: that Congress, in passing the Clean Air Act, intended to carve out an exception allowing the commission to forgo balancing adverse air quality impacts on local communities under the Natural Gas Act and to skip disclosure and analysis of direct air-emissions effects under NEPA. She warned that this creates greater uncertainty for the commission and project developers.

Nothing changes for pipeline or LNG applicants until the commission finalizes the policy after the comment period. The October 15 action starts a public process in Docket PL26-3-000; it does not approve any specific project, revoke any existing permit or alter current Clean Air Act obligations. Readers should treat completion timelines and litigation outcomes as open questions, not settled facts.

Official source: Federal Energy Regulatory Commission ↗