Trump's push to expedite construction of pipelines could end up slowing them down by encouraging states with climate policies
New York last year blocked the 628mn cf/d (17mn m?/d) Constitution natural gas pipeline by denying it a water permit. Meanwhile, developers of a 126mn cf/d lateral from the Millennium pipeline are suing the state for allegedly delaying it a water permit. That type of state opposition is likely to intensify as Trump prioritizes pipelines and dismantles climate regulations, say industry attorneys.
"The more they lean in, the more these projects carry that kind of federal government [support], the juicier targets they become for governors and state attorneys general to oppose them," Harris, Wiltshire & Grannis attorney Sam Walsh said today at a conference hosted in Washington, DC, by the Energy Bar Association.
The Trump administration can expedite federal approval of natural gas and oil pipelines by prioritizing environmental reviews and improving coordination among different agencies. Trump has already given federal approval to the 830,000 b/d Keystone XL and the 470,000 b/d Dakota Access crude pipelines, which had stalled under the former administration.
But states still hold some sway over pipelines that cross through their borders, by denying or delaying water and air permits and through coastal planning decisions. TransCanada lands and projects director Brant Johnson said local zoning boards have started to work to block pipeline compressor stations through air permits, while counties have requested large payments for other needed permits.
"They will say you are building a little shed, that is great, plus 75 miles of pipeline, you owe us $375,000 for a flood plain permit," Johnson said.
Pipeline developers have some recourse if they feel state regulators are taking too long to issue a permit, or end up denying a permit, by filing litigation. But those lawsuits take time and might only require states to provide further explanation for their decisions.
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