(The Center Square) — New York business groups are urging state utility regulators to approve a previously rejected plan to extend a regional natural gas pipeline championed by President Donald Trump as part of broader efforts to expand domestic production of the fossil fuel.
The Northeast Supply Enhancement project calls for extending a pipeline that runs from Pennsylvania to New Jersey into New York City and Long Island to help provide more energy for the region, which backers say has long been constrained by a lack of capacity. National Grid, a regional utility behind the project, and developer Williams, say the $1 billion expansion of the Transco pipeline will provide enough gas to power more than 2.3 million homes.
The previously rejected project was resurrected in May following talks between Gov. Kathy Hochul and Trump, who reportedly lifted a work order on a wind farm off the coast of Long Island in exchange for Hochul dropping her opposition to pipeline expansion. National Grid resubmitted its plans to the New York Public Service Commission in July, and regulators have been soliciting public feedback before reviewing the project.
Ahead of a decision on the project, business groups are making a major push to win approval for the pipeline expansion they say will reduce electricity prices and make the New York electrical grid more reliable.
“Reliable and affordable energy is essential to the success of our local businesses, and this plan represents a smart investment in our region’s future,” Robert Fonti, chairperson of the Suffolk County Alliance of Chambers, wrote in testimony to the state agency. “This added capacity is not just about meeting today’s needs, it’s about ensuring resilience in the face of future challenges, including extreme weather events and supply disruptions.”
A coalition of groups, including the Association for a Better Long Island, Long Island Builders Institute and Long Island Contractors Association, are also urging regulators to approve the project, writing in testimony that it “balances our immediate energy reliability needs with our long-term sustainability objectives.”
“As our region’s demand for energy continues to grow, this requires us to look ahead to ensure that our communities have the necessary infrastructure in place to meet that demand,” they wrote. “Following recent changes to offshore wind policies by the federal government, we need to ensure access to a mix of energy sources that are reliable, affordable, and clean if we are to meet future energy needs.”
Energy industry officials have long argued that a lack of pipeline infrastructure partly constrains the Northeast’s energy market and have pushed to expand it. They say natural gas is likely to be a key part of the region’s energy mix for years and pipeline constraints have led to higher bills for ratepayers.
But the New York Department of Environmental Conservation has previously rejected permits for the NESE pipeline, claiming the project would destroy “sensitive habitats” and cause “significant water quality impacts.” Environmental groups have urged the state agency to reject the latest proposal, claiming it conflicts with a law requiring the state to cut greenhouse gas emissions 40% by 2030 and transition its power grid to zero-emission sources by 2040.
New York City Comptroller Brad Lander is among those who oppose the pipeline expansion project. He said the pipeline will saddle National Grid customers with an estimated $200 million a year in utility bills for the next 15 years. He accused Hochul of flipping on the issue after striking a deal with Trump.
“The governor is undermining New York’s climate mandates by bringing back a previously rejected fracked gas pipeline project without any meaningful opportunity for public input,” Lander wrote in testimony to regulators. “To stay on track toward a just and equitable climate future, the DEC must reject the NESE pipeline.”
