April, 21 2020, 12:00am EDT
Groundbreaking Climate Lawsuit Challenges Commission's Failure to Factor Greenhouse Gas Emissions in Fossil Fuel Approvals
Suit concerns Massachusetts compressor station, but victory would impact approval of all fossil fuel projects across the nation.
WASHINGTON
A potentially historic lawsuit was filed in the D.C. Circuit Court today that could have enormous implications for the country's ability to reduce carbon emissions in line with international climate goals.
The lawsuit, Food & Water Watch and Berkshire Environmental Action Team v Federal Energy Regulatory Commission, charges that the national body that regulates new gas infrastructure projects is failing to consider the climate impacts of the pipelines and related infrastructure that it is tasked with reviewing.
FERC, which oversees all interstate gas projects, has been flouting court orders for almost three years, following a D.C. Circuit decision requiring them to meaningfully consider the 'downstream' greenhouse gas emissions of pipeline projects -- essentially the combustion activities associated with fossil gas facilitated by these pipelines.
Instead of including these reasonable considerations, FERC has maintained that all downstream emissions and climate impacts are inherently unforeseeable, and have thus asserted that the climate impacts of gas infrastructure are effectively zero.
The commission's current policy is to restrict emissions reviews to solely the construction phase of a given project, an absurd and dangerous evasion of legal precedent that essentially rubber stamps new fossil fuel projects at a time when we must be transitioning away from oil and gas to maintain a habitable climate.
"Winning this case could be a watershed moment for climate action," said Food & Water Watch attorney Adam Carlesco. "It would require the primary federal gas regulator for the globe's largest gas producing nation to finally consider the climate impacts of the fossil fuel infrastructure projects it reviews and seriously weigh those impacts when considering the necessity of those projects. This would be a welcome departure from the Commission's dangerous, politically charged, and unscientific status quo that places a thumb on the scales in favor of pipeline developers. It could also give vulnerable and impacted communities a potential legal avenue for challenging the approval of new sources of pollution."
The project at the center of the lawsuit is the "261 Upgrade Project," which consists of two miles of new pipeline and a new 11,000 horsepower compressor unit near Springfield, Massachusetts. FERC granted the project its certificate in December 2019. Shortly thereafter Food & Water Watch and the Berkshire Environmental Action Team (BEAT) filed for rehearing, which was denied in late February.
The commission did not approve the project unanimously. In his dissent, Commissioner Richard Glick pointed out that "claiming that a project has no significant environmental impacts while at the same time refusing to assess the significance of the project's impact on the most important environmental issue of our time is not reasoned decision-making."
In addition to FERC's failure to address climate impacts, the 'necessity' argument for this project is based on outdated precedent agreements with two companies, one of which has since withdrawn support for the project, while the other -- Columbia Gas -- was subsequently banned from operating in the state of Massachusetts after a deadly explosion in Lawrence and Andover in 2018. The company pleaded guilty to felony charges and paid $53 million, the largest criminal fine in history under the Natural Gas Act. The company's current operations in the state are in flux.
A positive outcome in the case would not only force FERC to consider climate impacts, but it would also prevent additional harm to resident already suffering from the existing gas infrastructure. "With an estimated emissions load of an additional 477,000 tons per year, the project is in clear violation of Massachusetts state mandate to reduce emissions, the Global Warming Solutions Act," said Jane Winn, executive director of the Berkshire Environmental Action Team. "Aside from these climate concerns, the neighboring city, Springfield, wedged between the compressor station site in Agawam and the location for the newly proposed TGP meter station in Longmeadow, has been deemed by The Allergy and Asthma Foundation of America as the 'Most Challenging Place to Live with Asthma.' Adding more emissions to a region already struggling with ozone pollution issues is an unsafe and unreasonable prospect."
Food & Water Watch mobilizes regular people to build political power to move bold and uncompromised solutions to the most pressing food, water, and climate problems of our time. We work to protect people's health, communities, and democracy from the growing destructive power of the most powerful economic interests.
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Trump Pick to Replace Lina Khan Vowed to End 'War on Mergers'
"Andrew Ferguson is a corporate shill who opposes banning noncompetes, opposes banning junk fees, and opposes enforcing the Anti-Merger Act," said one antitrust attorney.
Dec 11, 2024
President-elect Donald Trump's pick to lead the Federal Trade Commission vowed in his job pitch to end current chair Lina Khan's "war on mergers," a signal to an eager corporate America that the incoming administration intends to be far more lax on antitrust enforcement.
Andrew Ferguson was initially nominated by President Joe Biden to serve as a Republican commissioner on the bipartisan FTC, and his elevation to chair of the commission will not require Senate confirmation.
In a one-page document obtained by Punchbowl, Ferguson—who previously worked as chief counsel to Sen. Mitch McConnell (R-Ky.)—pitched himself to Trump's team as the "pro-innovation choice" with "impeccable legal credentials" and "proven loyalty" to the president-elect.
Ferguson's top agenda priority, according to the document, is to "reverse Lina Khan's anti-business agenda" by rolling back "burdensome regulations," stopping her "war on mergers," halting the agency's "attempt to become an AI regulator," and ditching "novel and legally dubious consumer protection cases."
Trump announced Ferguson as the incoming administration's FTC chair as judges in Oregon and Washington state
blocked the proposed merger of Kroger and Albertsons, decisions that one antitrust advocate called a "fantastic culmination of the FTC's work to protect consumers and workers."
According to a recent
report by the American Economic Liberties Project, the Biden administration "brought to trial four times as many billion-dollar merger challenges as Trump-Pence or Obama-Biden enforcers did," thanks to "strong leaders at the FTC" and the Justice Department's Antitrust Division.
In a letter to Ferguson following Trump's announcement on Tuesday, FTC Commissioners Alvaro Bedoya and Rebecca Kelly Slaughter wrote that the document obtained and published by Punchbowl "raises questions" about his priorities at the agency mainly "because of what is not in it."
"Americans pay more for healthcare than anyone else in the developed world, yet they die younger," they wrote. "Medical bills bankrupt people. In fact, this is the main reason Americans go bankrupt. But the document does not mention the cost of healthcare or prescription medicine."
"If there was one takeaway from the election, it was that groceries are too expensive. So is gas," the commissioners continued. "Yet the document does not mention groceries, gas, or the cost of living. While you have said we're entering the 'most pro-worker administration in history,' the document does not mention labor, either. Americans are losing billions of dollars to fraud. Fraudsters are so brazen that they impersonate sitting FTC commissioners to steal money from retirees. The word 'fraud' does not appear in the document."
"The document does propose allowing more mergers, firing civil servants, and fighting something called 'the trans agenda,'" they added. "Is all of that more important than the cost of healthcare and groceries and gasoline? Or fighting fraud?"
As an FTC commissioner, Ferguson voted against rules banning anti-worker noncompete agreements and making it easier for consumers to cancel subscriptions. Ferguson was also the only FTC member to oppose an expansion of a rule to protect consumers from tech support scams that disproportionately impact older Americans.
"Andrew Ferguson is a corporate shill who opposes banning noncompetes, opposes banning junk fees, and opposes enforcing the Anti-Merger Act," said Basel Musharbash, principal attorney at Antimonopoly Counsel. "Appointing him to chair the FTC is an affront to the antitrust laws and a gift to the oligarchs and monopolies bleeding this country dry."
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Once Again, Tom Cotton Blocks Bill to Shield Journalists From Betraying Sources
Responding to the GOP senator's latest thwarting of the PRESS Act, Democratic Sen. Ron Wyden vowed to "keep trying to get this bill across the finish line" before Republicans take control of the Senate next month.
Dec 10, 2024
Republican U.S. Sen. Tom Cotton of Arkansas on Tuesday again blocked the passage of House-approved bipartisan legislation meant to shield journalists and telecommunications companies from being compelled to disclose sources and other information to federal authorities.
Sen. Ron Wyden (D-Ore.) brought the Protect Reporters from Exploitative State Spying (PRESS) Act—which would prohibit the federal government from forcing journalists and telecom companies to disclose certain information, with exceptions for terroristic or violent threats—for a unanimous consent vote.
Senate Majority Leader Chuck Schumer (D-N.Y.) argued Tuesday that passing the PRESS Act is "more important now than ever before when we've heard some in the previous administration talk about going after the press in one way or another," a reference to Republican President-elect Donald Trump's threats to jail journalists who refuse to reveal the sources of leaks. Trump, who has referred to the press as the "enemy of the people," repeatedly urged Senate Republicans to "kill this bill."
Cotton, who blocked a vote on the legislation in December 2022, again objected to the bill, a move that thwarted its speedy passage. The Republican called the legislation a "threat to national security" and "the biggest giveaway to the liberal press in American history."
The advocacy group Defending Rights and Dissent lamented that "Congress has abdicated their responsibility to take substantive steps to protect the constitutional right to a free press."
However, Seth Stern, director of advocacy at the Freedom of the Press Foundation, noted ways in which Senate Democrats can still pass the PRESS Act before Republicans gain control of the upper chamber next month:
Senate Democrats had all year to move this bipartisan bill and now time is running out. Leader Schumer needs to get the PRESS Act into law—whether by attaching it to a year-end legislative package or bringing it to the floor on its own—even if it means shortening lawmakers' holiday break. Hopefully, today was a preview of more meaningful action to come.
Responding to Tuesday's setback, Wyden vowed, "I'm not taking my foot off the gas."
"I'll keep trying to get this bill across the finish line to write much-needed protections for journalists and their sources into black letter law," he added.
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Judges Block Kroger-Albertsons Merger in 'Win for Farmers, Workers, and Consumers'
"We applaud the FTC for securing one of the most significant victories in modern antitrust enforcement," said one advocate.
Dec 10, 2024
Antitrust advocates on Tuesday welcomed a pair of court rulings against the proposed merger of grocery giants Kroger and Albertsons, which was challenged by Federal Trade Commission Chair Lina Khan and multiple state attorneys general.
"The FTC, along with our state partners, scored a major victory for the American people, successfully blocking Kroger's acquisition of Albertsons," said Henry Liu, director of the commission's Bureau of Competition, in a statement. "This historic win protects millions of Americans across the country from higher prices for essential groceries—from milk, to bread, to eggs—ultimately allowing consumers to keep more money in their pockets."
"This victory has a direct, tangible impact on the lives of millions of Americans who shop at Kroger or Albertsons-owned grocery stores for their everyday needs, whether that's a Fry's in Arizona, a Vons in Southern California, or a Jewel-Osco in Illinois," he added. "This is also a victory for thousands of hardworking union employees, protecting their hard-earned paychecks by ensuring Kroger and Albertsons continue to compete for workers through higher wages, better benefits, and improved working conditions."
While Liu was celebrating the preliminary injunction from Oregon-based U.S. District Court Judge Adrienne Nelson, later Tuesday, King County Superior Court Judge Marshall Ferguson released a ruling that blocked the merger in Washington state.
"We're standing up to mega-monopolies to keep prices down," said Washington Attorney General Bob Ferguson. "We went to court to block this illegal merger to protect Washingtonians' struggling with high grocery prices and the workers whose jobs were at stake. This is an important victory for affordability, worker protections, and the rule of law."
Advocacy groups applauding the decisions also pointed to the high cost of groceries and the anticipated impact of Kroger buying Albertsons—a $24.6 billion deal first announced in October 2022.
"American families are the big winner today, thanks to the Federal Trade Commission. The only people who stood to gain from the potential merger between Albertsons and Kroger were their wealthy executives and investors," asserted Liz Zelnick of Accountable.US. "The rest of us are letting out a huge sigh of relief knowing today's victory is good news for competitive prices and consumer access."
Describing the federal decision as "a victory for commonsense antitrust enforcement that puts people ahead of corporations," Food & Water Watch senior food policy analyst Rebecca Wolf also pointed out that "persistently high food prices are hitting Americans hard, and a Kroger-Albertsons mega-merger would have only made it worse."
"Already, a handful of huge corporations' stranglehold on our food system means that consumers are paying too much for too little choice in supermarkets, workers are earning too little, and farmers and ranchers cannot get fair prices for their crops and livestock," she noted. "Today's decision and strengthened FTC merger guidelines help change the calculus."
Like Wolf, Farm Action president and co-founder Angela Huffman similarly highlighted that "while industry consolidation increases prices for consumers and harms workers, grocery mergers also have a devastating impact on farmers and ranchers."
"When grocery stores consolidate, farmers have even fewer options for where to sell their products, and the chances of them receiving a fair price for their goods are diminished further," Huffman explained. "Today's ruling is a win for farmers, workers, and consumers alike."
Some advocates specifically praised Khan—a progressive FTC chair whom President-elect Donald Trumpplans to replace with Andrew Ferguson, a current commissioner who previously worked as chief counsel to Senate Minority Leader Mitch McConnell (R-Ky.) and as Republican counsel on the Senate Judiciary Committee.
"Today's decision is a major win for shoppers and grocery workers. Families have been paying the price of unchecked corporate power in the food and grocery sector, and further consolidation would only worsen this crisis," declared Groundwork Collaborative executive director Lindsay Owens in a statement.
"FTC Chair Lina Khan's approach is the blueprint to deliver lower prices, higher wages, and an economy that works for everyone," Owens argued. "The rebirth of antitrust enforcement has protected consumers against the worst of corporate power in our economy and it would be wise to continue this approach."
Laurel Kilgour, research manager at the American Economic Liberties Project, called the federal ruling "a resounding victory for workers, consumers, independent retailers, and local communities nationwide—and a powerful validation of Chair Khan and the FTC's rigorous enforcement of the law."
"The FTC presented a strong case that Kroger and Albertsons fiercely compete head-to-head on price, quality, and service. The ruling is a capstone on the FTC's work over the past four years and includes favorable citations to the FTC's recent victories against the Tapestry-Capri, IQVIA-Propel, and Illumina-Grail mergers," Kilgour continued.
"The court also cites long-standing Supreme Court law which recognizes that Congress was also concerned with the impacts of mergers on smaller competitors," she added. "We applaud the FTC for securing one of the most significant victories in modern antitrust enforcement and for successfully protecting the public interest from harmful consolidation."
Despite the celebrations, the legal battle isn't necessarily over.
The Associated Pressreported that "the case may now move to the FTC, although Kroger and Albertsons have asked a different federal judge to block the in-house proceedings," and Colorado is also trying to halt the merger in state court.
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