New York could block fossil fuel push
NEW YORK — Forget the climate warriors of California. The state best positioned to spoil Donald Trump’s plan to unleash America’s fossilfuel resources may be New York.
In the past year, New York regulators have blocked two major natural gas pipelines — a $455 million proposal by National Fuel Gas Co. and a $925 million one from Williams Partners LP — on the grounds that they pose environmental risks. One bank’s saying investors have no choice but to assign “elevated risk premiums” to energy projects in the state, National Fuel Gas is threatening to take its money elsewhere and Williams’ chief executive officer said Wednesday that he’s in talks with the White House on how the administration can help.
What makes New York so pivotal in the fight against fossil fuels is its location, next-door to the nation’s most-prolific shale gas formation. That’s turned it into a crucial link in the vast U.S. network of oil and gas pipelines and a major consumer of the heating and power-plant fuel. By blocking projects, New York is testing the limits of states’ rights by running head-on against Trump’s call for more energy infrastructure.
“States and cities are going to be expected to carry the load since it’s apparent the federal government has backed away from that responsibility” of protecting the environment and fighting global warming, Basil Seggos, who leads New York’s Department of Environmental Conservation, said by phone, acknowledging the growing rift between the state and those in Washington. “I would not dispute that New York and the federal government have different approaches on climate policy.”
While Trump is working to undo Obama-era regulations requiring power plants to cut greenhouse-gas emissions, New York is working on a plan to get half of its electricity from renewable energy sources. Its goal is to cut emissions 40 percent from 1990 levels.
“New York’s recalcitrance to new pipeline infrastructure is unique versus other regions because the state has a real need for cheap natural gas and acts as a gateway to other similarly-situated areas like the Northeast,” said Brandon Barnes, an analyst at Bloomberg Intelligence.
Even before the election, New York Gov. Andrew Cuomo was taking great pains to distance himself from Trump and “carve out an image as a particularly progressive and environmentally focused leader,” said Katie Bays, an analyst at Height Securities LLC.
Arguably now more than ever, she said, there’s “political will” in Washington “to strip New York of its permitting authority.”