CHARLESTON, W. Va. – A spate of proposed gas pipeline projects has drawn sharp criticism from environmental advocates, who say the federal permitting agency has a built-in bias toward the industry.
Last week, nearly 70 people from almost a dozen states testified at what organizers called a People's Hearing, aimed at documenting bias and problems at the Federal Energy Regulatory Commission.
Delaware Riverkeeper Maya van Rossum said FERC almost always sides with the industry over citizens and the environment - in part, she argued, because more and larger pipelines add to the fees that fund the agency's budget.
"[Fees] increased the more pipeline projects that are approved and the greater the volume of gas that's approved to pass through them,” van Rossum said. "Throughout the 30 years that FERC has been funded in this way, it only rejected one pipeline project."
The industry and agency claim many of the proposed pipelines are being driven by pressure to get the large volume of new Marcellus and Utica gas to market. But Van Rossum said Congress should investigate.
By law, FERC permits pipelines that can demonstrate a public need. And it allows those companies to make a 14 percent guaranteed profit.
Like other agencies of its kind, FERC often relies on the specialized expertise of individuals from the industry. Van Rossum said over time, staff, consultants and even FERC commissioners move back and forth though what she called "a revolving door" between the regulators and the regulated. In her view, the situation results in a clear conflict of interest.
"In the case of one commissioner, he was reviewing and approving a pipeline project for the company where his wife worked,” van Rossum said.
Half a dozen separate pipeline projects are currently seeking approval to carry Marcellus and Utica gas to Virginia and the Carolinas, even despite one study that found gas supplies are adequate through 2030.
One problem, Van Rossum said, is that companies will sometimes justify the need for the pipeline by showing contracts to sell gas from one branch of the corporation to another.
"The customer for the pipeline company delivering the gas is actually - in total or in part - the pipeline company itself,” she said.
Van Rossum argued that FERC has become a "rogue agency" that has been "captured" by industry - an especially problematic relationship in light of the agency’s power to grant eminent domain. She believes Congress should rein it in.
get more stories like this via email
Kentucky House lawmakers are considering a bill that could make it harder to close aging coal-fired power plants.
At the Kentucky Resources Council, Program Attorney Bryon Gary said the bill is part of the larger legislative effort to tip the state's energy planning process in favor of the coal industry.
He explained Senate Bill 349 would create a new "energy planning and inventory" commission tasked with reviewing utilities' plans to retire their aging plants.
"To artificially limit what resources a utility can build," said Gary, "and to artificially require them to keep running power plants that are well beyond their useful life and incredibly expensive to run, is just going to make the problem worse."
The bill's sponsor, state Sen. Robby Mills, R-Henderson, and supporters say the change is needed to ensure the state has a reliable power supply.
Kentucky has several aging coal-fired power plants from the 1970s and 1980s that are no longer economically competitive and are set to be decommissioned within several years.
President of LG&E and KU Energy John Crockett said creating the new commission isn't in customers' best interest.
"It's a group that's almost entirely without expertise in generating or distributing electricity," said Crockett. "And it's designed to promote and perpetuate coal generation outside of a traditional 'least cost reasonable' analysis that has served Kentucky well for decades."
Gary added the bill also would impose a six-month deadline for the state's utility regulator to make decisions for certain types of cases.
He said this could silence voices from low-income communities and other groups affected by rate hikes.
"And would weaken the due process protections for all parties involved," said Gary, "by shortening the timeline for things that are essential to make sure that cases are fully heard and vetted, such as discovery and a hearing and briefing of all the parties."
The Kentucky Energy and Environment Cabinet and the Public Service Commission warn the bill doesn't allocate funds to cover costs related to the new commission.
They're also concerned about the bill's time limit for fuel adjustment clause proceedings, which help return millions of dollars in utility bill refunds to Kentucky customers.
Disclosure: Kentucky Solar Energy Society and Kentucky Resources Council contributes to our fund for reporting on Energy Policy, Environment, Water. If you would like to help support news in the public interest,
click here.
get more stories like this via email
New York's state lawmakers are considering a measure that would shake up the way Long Island's power grid operates.
The Long Island Power Authority Public Power Act would make LIPA the sole operator of the grid, ending the long-standing public-private model. Residents feel this model has made communication between ratepayers and their power company inefficient.
Ryan Madden, climate and energy campaigns director for the Long Island Progressive Coalition, said the status quo creates something akin to "a game of unnecessary telephone."
"For example, an issue is raised, and it's brought either from the LIPA board or LIPA staff brings it to the LIPA board," Madden explained. "It then has to be passed along to PSE&G. PSE&G takes weeks, months in order to come back. Then they have to bring in the Department of Public Service of Long Island."
In 2023, numerous groups from Long Island and the Rockaways called for an end to this model, and customers have expressed concerns over how Long Island power responds to bad weather. After Superstorm Sandy, PSE&G replaced National Grid as the third-party manager because people felt the company mishandled power restoration to the area.
Residents have a similar feeling for how PSE&G dealt with the aftermath of Tropical Storm Isaias.
The bill is under review by the Assembly's Corporations, Authorities and Commissions Committee.
Supporters have contended that replacing the public-private model would put more money back in ratepayers' pockets. A 2023 study found that a fully public Long Island grid could save ratepayers around $500 million over the next decade.
Madden said terminating PSE&G's contract would create some of the initial savings.
"There's been some ranges depending on conservative estimates," he noted. "Anywhere from $60 million to $80 million saved in the functioning of the utility, right? So we're getting rid of $80 million in management fees for PSE&G."
Madden said LIPA could use some of the savings to make improvements in the grid, expand programs and increase stakeholder input. He also said he thinks this will help make the grid more climate-efficient in a way that doesn't further disadvantage certain communities.
get more stories like this via email
Minnesota already has a law calling for 100% carbon-free electricity by 2040. Now, there's a similar plan for transportation, and a legislative committee will consider the idea today.
The clean transportation standard has a target year of 2050 for phasing out carbon-intensive fuel sources for cars and trucks.
Producers slow to adapt would have to buy credits, while companies distributing cleaner products would receive incentives.
Transportation accounts for about a quarter of Minnesota's greenhouse gas emissions, and Fresh Energy's Senior Lead for Innovation and Impact Margaret Cherne-Hendrick said this approach could help reduce that total.
She pointed to newer types of biofuels, beyond standards like ethanol.
"For example, winter oil seeds are better for the environment," said Cherne-Hendrick. "They require much less fertilizer. "
University of Minnesota researchers note these seeds could benefit parts of the transportation sector that face challenges in going electric, such as heavy-duty trucks.
Under the bill, fuel sources would be graded on their carbon intensity - to determine where they rate with the standard.
Skeptics, including some environmental researchers, say the plan could have unintended consequences in reducing emissions.
State Senate Transportation Committee Chair Scott Dibble - DFL-Minneapolis - said while there's a strong push for electric vehicle adoption, many people right now still have to buy cars powered by traditional fuel sources.
"The market penetration is still very small for EVs," said Dibble, "and they're going to own and operate that liquid fuel-based car for the coming 20 plus years."
As the EV market takes shape, he said it makes sense to fill these other cars with the cleanest fuels possible.
There's still a lot to sort out in establishing the standard, and Dibble acknowledged it might have to start as a goal, given the current state of fuel technology.
His bill calls for a one-time appropriation of $900,000 for implementation, but Dibble insisted the incentives market would largely support itself in the long-term.
Disclosure: Fresh Energy contributes to our fund for reporting on Climate Change/Air Quality, Energy Policy, Environment, Environmental Justice. If you would like to help support news in the public interest,
click here.
get more stories like this via email