Federal energy regulators have approved Vermont Gas’ request to construct a natural gas pipeline from Middlebury to Ticonderoga, New York, without a federal review of the project’s environmental impacts.
Vermont and New York regulators now have full authority to review the the economic and environmental impacts of the pipeline. The Vermont Public Service Board this month postponed its review of that portion of the pipeline until January, in part because Vermont Gas had not obtained the waiver.
“This is really good news for the project,” company spokesman Steve Wark said Tuesday. “It clearly indicates that we have met the criteria for a waiver.”
Vermont Gas is seeking permission to build an approximately 20-mile, $74 million pipeline from Middlebury under Lake Champlain to the International Paper mill in New York. The mill has agreed to pay nearly the entire cost of the project.
The company was required to obtain permission from the Federal Energy Regulatory Commission, or FERC, to build the second phase of its interstate pipeline extension under the Natural Gas Act.
The project includes 1,830 feet of 10-inch diameter pipeline from the Vermont border to the paper mill. The company will also build a metering and regulation station in New York to connect high pressure supply lines to low pressure lines to feed the paper mill.
The pipeline will not compete with other gas distributors, the order states, and Vermont Gas does not plan to sell gas to any other New York customers.
The Vermont Public Interest Research Group, an advocacy group opposing the pipeline, urged regulators to require the company to undergo an environmental impact study. VPIRG says without this review there is a gap in regulatory review, but it is not going to appeal the decision.
Jim Dumont, a Bristol attorney representing VPIRG, said a full environmental review was necessary because Vermont cannot review the impacts in New York and vice versa. For example, Vermont regulators cannot enforce emission standards from the paper mill in New York.
“They are outside the Public Service Board’s reach,” he said. “What’s the Public Service Board going to do if they increase paper production by 50 percent and all the greenhouse gas reductions turn out to be completely wrong?”
International Paper spokeswoman Donna Wadsworth said the plant is operating at full capacity and more natural gas would not cause the company to increase its paper production.
Wark said the company is requesting a timeline for when the New York Public Service Commission will review the pipeline.