Rehearing Gives Energy Department a Second Chance to get it Right

Letter

McHUGH: REHEARING GIVES ENERGY DEPARTMENT A SECOND CHANCE TO GET IT RIGHT

U.S. Congressman John M. McHugh (R-NY) announced that the Department of Energy (DOE) has agreed to consider a rehearing on the designation of New York State land as part of the Mid-Atlantic National Interest Electric Transmission Corridor (NIETC). This decision comes on the heels of McHugh's recent request that the Secretary of Energy, Samuel Bodman, grant a new hearing because the designation would allow power companies, such as the New York Regional Interconnection (NYRI), to bypass the state licensing process. In addition to working with the DOE, McHugh has offered assistance to Governor Spitzer to ensure that state laws and procedures are adhered to by power companies looking to construct new power lines in New York State. Congressman McHugh's statement follows:

"This is a positive step toward ensuring that state laws and procedures form the foundation for a new utility corridor," McHugh commented. "The DOE rushed to designate significant portions of New York State land within the NIETC without careful consideration of the impact upon the environment and local residents. I am optimistic that a rehearing process will make it quite clear that this designation was a mistake and I urge the DOE to reverse their decision."

Background:

Congressman McHugh is an original co-sponsor of three pieces of legislation to eliminate the ability for power companies to bypass state licensing processes and would force companies such as NYRI to adhere to the New York State review and approval process.

H.R. 809 and H.R. 810 would amend the Federal Power Act, under the Energy Policy Act of 2005. The bills would repeal provisions that allow the federal government to impose new energy corridors and build power lines over state review. Currently, if an energy corridor is rejected by a state, an appeal may be made directly to the Federal Energy Regulatory Commission for approval.

H.R. 829, the National Interest Electric Transmission Corridor Clarification Act, would amend the Federal Power Act to revise the factors the Secretary of Energy may consider in determining whether to designate a national interest electric transmission corridor. The bill authorizes the Secretary to consider whether the designation would have potential impacts on natural values and special places considered to be in the national interest.

The letter Congressman McHugh sent to Secretary Bodman last month requesting the rehearing can be found below:

***FULL TEXT OF LETTER***

November 16, 2007

The Honorable Samuel Bodman

Secretary of Energy

U.S. Department of Energy

1000 Independence Avenue, SW

Washington, D.C. 20585

Dear Secretary Bodman:

I write to convey my strong support for two petitions- one by the New York State Department of Environmental Conservation and the second by the New York State Department of Public Service- recently filed with the U.S. Department of Energy (DOE) concerning its designation of the Mid-Atlantic Area National Interest Electric Transmission Corridor (NIETC). As I have conveyed through past correspondence, I am deeply opposed to this designation.

The Mid-Atlantic Corridor Designation encompasses 47 of New York's 62 counties, including eight of the eleven counties within my Northern and Central New York 23rd Congressional District. Included within the NIETC corridor are large portions of the Adirondack and Catskill Parks in New York's constitutionally protected Forest Preserve. Also included within the NIETC designation are State Reforestation and Wildlife Management Areas. While located outside of the boundaries of the Adirondack and Catskill Parks, these Areas are classified as "Forest Preserve counties." The Constitution of the State of New York prohibits the State from alienating any proprietary interest in these areas, such as the conveyance of the fee or taking of a right of way or easement by a utility company. Furthermore, there is a 40 foot building restriction within the Adirondack Park boundaries. I am deeply concerned that the federal government would advocate a policy that threatens the historic, pristine nature of the Park. As I know you are aware, the Adirondack Park is the largest publicly protected area in the contiguous United States, greater than the combined size of the Yellowstone, Everglades, Glacier, and Grand Canyon National Parks.

In 1996, I had the distinct privilege of voting to establish the Hudson River Valley American Heritage Area. It is my understanding that the DOE did not consult with the Secretary of the Interior and the Hudson River Greenway Council, a New York State agency, and the Greenway Conservancy for the Hudson River Valley, a public benefit corporation, when designating areas of this National Heritage area as part of the NIETC, a requirement of Public Law 104-333.

I also understand that the DOE failed to prepare an environmental assessment as required by the National Environmental Policy Act, and erred in its determination that the designation of the Mid-Atlantic NIETC was not a major federal action significantly affecting the quality of the human environment. The Mid-Atlantic NIETC, in addition to New York, is comprised of the entirety of the States of New Jersey and Delaware, the District of Columbia, and significant portions of Maryland, Pennsylvania, Ohio, Virginia, and West Virginia. Furthermore, on the same day that the Mid-Atlantic NIETC was announced, the DOE also announced the designation of the Southern Area NIETC, comprised of parts of California and Arizona. I believe, and firmly support the position of the State of New York, that designating such a large area of the nation as part of these corridors constitutes a major federal action.

The action in question also paves the way for the potential construction of power lines in areas such as federally protected land along the Upper Delaware Scenic and Recreational River Corridor, several Native American reservations including that belonging to the St. Regis Mohawks, and communities that have relied on agriculture as a way of life. Clearly, the NIETC designation will have a wide based and extreme effect on the quality of the human environment and, as such, the Department of Energy should issue an Environmental Impact Statement or a "finding of no significant impact" describing the basis for such a conclusion.

I am confident that Article VII of the New York State Public Service Law sets forth the appropriate review process for any company that seeks to construct and operate a major utility transmission facility within New York State. It is also my firm contention that it was never the intent of Congress to allow a federal agency to override a state agency when a utility project is constructed entirely within the boundaries of a state. Congress did not require DOE to designate national corridors, but rather permitted such a designation in areas experiencing electric energy transmission capacity constrain or congestion that adversely affects consumers. Mr. Secretary, I fail to see how many of the counties within my Congressional District warrant such a designation.

I firmly endorse and request your speedy consideration of petitions filed on behalf of the State of New York requesting a rehearing on DOE's designation of New York State land within the Mid-Atlantic National Interest Electric Transmission Corridor.

With every good wish, I remain

Sincerely yours,

John M. McHugh

Member of Congress

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