The decision issued at the end of August by the New York State Department of Environmental Conservation (NYSDEC) denying certain approvals in connection with a proposed natural gas pipeline that would fuel a major new power plant under construction in Orange County may have been seen by environmental activists as a mechanism for local and state regulators to control greenhouse gases (GHG) in place of a recalcitrant federal government. The euphoria of environmental activists statewide, however, may have been tempered by a subsequent order of the Federal Energy Regulatory Commission (FERC) issued in mid-September, although the NYSDEC's reasoning still offers a viable roadmap for state and local control of GHG.

The Project

The Orange County project, known as the “Valley Lateral Project,” proposed by Millennium Pipeline Company, is located in the upstate New York towns of Wawayanda and Minisink. See generally Millennium Pipeline Company, Valley Lateral Project. Millennium proposes to construct a new 7.8 mile, 16-inch diameter natural gas pipeline that would extend from Millennium's existing main line pipeline north to a new 650-megawatt gas-powered Competitive Power Ventures (CPV) Valley Energy Center, currently being constructed by CPV Valley in Wawayanda, and for ancillary above-ground facilities. See generally Competitive Power Ventures, CPV Valley Energy Center Approval Process.

The proposed pipeline would provide about 130 million cubic feet per day of natural gas to the CPV Valley Energy Center to be used as the primary fuel for that plant. CPV Valley also can use ultra-low sulfur distillate oil as a back-up fuel, but its use is limited.