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FERC chair says agency will follow the law, rejects social cost of carbon in NEPA reviews and supports 'regulatory house cleaning'
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Summary
The FERC Chairman said the commission will follow applicable law but called the social cost of carbon 'junk science' and said FERC plans to review long-standing regulations, while warning that imposing one-year sunsets on major rules would require APA-compliant processes to survive litigation.
At a FERC press conference, the Chairman said the commission will "follow the law" on rulemaking and expressed skepticism about the social cost of carbon, calling it "utterly bogus" and "junk science" and saying he does not think it has a role in NEPA reviews.
When asked whether OMB/OIRA guidance will affect how FERC treats proposed rules, the Chairman said FERC has not yet issued recent NOPRs and therefore has not had to submit draft rules for preliminary OIRA review, but he indicated the agency will cooperate with White House review processes where required. He also reiterated that ex parte rules continue to apply in contested proceedings such as permit applications and contested filings under the Federal Power Act.
On the April 9 executive order directing agencies to consider sunsetting regulations, the Chairman called for a regulatory "house cleaning" to review old rules and identify those no longer needed. He singled out Order 679 and said he would "love for the 1 year sunset on that, assuming I get 2 other votes," but warned that imposing one-year sunsets on major rules without full Administrative Procedure Act compliance would invite immediate court challenges from interested parties.
Context and next steps: the Chairman said FERC will review its regulations and consider which ones warrant reconsideration or sunsetting, but any substantive change to major rules will require APA-compliant processes, public comment, and likely collegial votes at the commission.
