Environmentalists And Politicians Express Joy Over LNG Veto

Environmentalists and politicians, who had been battling the liquid gas natural gas terminal proposed 28 miles off the Jersey Shore for years, were enjoying victory with Gov. Mario Cuomo’s recent veto, essentially rendering it dead in the water.
But in what could be seen as an ironic development, New Jersey Natural Gas announced the following day it is seeking a $148 million increase in its delivery rates, to cover costs for system upgrades and maintaining infrastructure, according to the utility representatives.
“We salute Governor Cuomo on this historic decision,” Cindy Zipf, executive director of Clean Ocean Action, announced following Cuomo’s Nov. 12 veto that stopped the project which would have been just off Long Branch and 18 miles off Jones Beach.
“It is clear by his swift action that he knew this project was harmful, unnecessary and dangerous to people and marine life,” she said,
NY/NJ Baykeeper issued a statement stressing, “The sun has set on Port Ambrose – we now look forward with joy to a new day of local, equitable and accountable renewable energy.”
Several bipartisan area lawmakers have been expressing their opposition to the plan such as state Senator Jennifer Beck (R11), and U.S. Representative Frank Pallone (D-NJ).
“Today is a major victory in our efforts to protect the environment and our natural resources…I couldn’t be happier that it will not move forward,” Sen. Beck said.
Pallone, who was equally thrilled, said, “The rejection of this project draws a line in the sand that instead of focusing on industrial uses of the ocean, our country and the State of New Jersey should be encouraging the use of renewable energy sources.”
Under federal regulations, both Cuomo and New Jersey Governor Chris Christie had the ability to kill this project by way of veto. While Christie is on the record opposing this and similar proposals – and vetoing projects twice before – he has not offered a public opinion on it.
Cuomo said he vetoed the project because he shared the fears voiced my objectors, citing security concerns, fears of Mother Nature noting in four years he had had nine natural emergencies, the proximity of the project to sensitive fishing area as well as it being near a proposal for possible renewable energy project would be developed as well as protecting beaches.
Officials and environmental groups, and many members of the general public were joined in believing the plan to construct the natural gas terminal posed environmental, economic and public safety dangers and had been aggressively lobbying federal regulators to deny the developers’ licensing application.
Liberty Natural Gas, a for-profit, Jersey City firm, which had been seeking to construct the controversial project, had continued to argue it would help stabilize natural gas prices and would meet every safety standard.
But the overwhelming number of people who attended two nights of public hearings in New Jersey, conducted by federal regulators on Nov. 4-5, were not swayed, continuing to voice concerns.
In reaction to the Cuomo’s decision, Liberty’s chief executive officer said he was “disappointed and very surprised” by the governor’s action, believing his company had sufficiently addressed those concerns.
Zipf said she hoped the U.S. Maritime Administration acts quickly to formally reject Liberty’s application. The administration and the U.S. Coast Guard would have been responsible for reviewing the application and issuing the needed licenses to construct and operate the LNG facility, depending on the governors’ actions.
In regards to the NJNG rate hike request, Chairman and Chief Executive Officer Laurence M. Downes said in a statement, “Providing our customers with safe reliable service is the most important we do.”
The increase is contingent on the state Board of Public Utilities (BPU) approval.
Under this proposal, gas company customers on average would see a $21.69 rate increase, according to the gas company’s own estimate.
This requested rate hike, taking into consideration the normal BPU review process, would not impact this winter’s heating bills, utility representatives said in their released statement.
Delivery rates are the portion of the customer’s bill designed to cover the gas company’s delivery costs, which include operating and maintenance expenses, as well as for any anticipated construction work.
Liberty Natural Gas had maintained during the federal review process that its facility would help stabilize dramatic rate hikes by having an available gas supply.
Zipf called the timing of this rate increase announcement “curious.”
Jeff Tittel, executive director of the Sierra Club’s New Jersey chapter, suspected there was no connection. However, “They keep saying about how much cheaper natural gas is and they keep promoting it,” Tittel said, “and every chance they get they’re looking for rate increases.”
Liberty Natural Gas had no comment regarding New Jersey Natural Gas’ announcement.