ACCI Conference 2020

Citizens expect US government agencies to protect consumers from unfair practices of businesses they regulate. Most agencies are charged with protecting both consumers and businesses and undergo regular review and reauthorization by Congress. The Federal Energy Regulatory Commission (FERC) was established in 1934 as an independent agency, funded by industry fees. Later, Congress allowed FERC to award entities whose proposals to build natural gas infrastructure the right to use the power of eminent domain to achieve them. Eminent domain is intended for use with projects that serve the public good, not private profit. The courts expanded the concept of eminent domain to include quick take, where energy companies are allowed to take possession of property prior to compensating landowners for it. Coupled with awarding certification conditioned on the company obtaining all necessary permits and licenses, FERC regularly issues tolling orders. These allow companies to incrementally construct infrastructure while forcing landowners seeking to challenge certification to wait for delayed official denial of their petition for reconsideration. By the time FERC finally issues the denial by federal court.

Author(s): Irene Leech