BYE-BYE BROADWATER? 

"We did it. We did it. We did it!" Those were the gleeful words of Republican Gov. Jodi Rell  on April 10 in a press conference at a Milford beach claiming that the highly-controversial Broadwater energy project likely had been sunk.

Broadwater is a proposed liquified natural gas (LNG) terminal slated to be built in the middle of Long Island Sound. It was always intended for New York waters, but since the Sound is shared between Connecticut and New York, Connecticut environmental groups and elected officials have been fighting it for months.

The rap on Broadwater is that it would disrupt shipping in the Sound, endanger the Sound's already-stressed wildlife and aquaculture, and create a new terrorist target in the New York metro region.

The LNG facility is a joint venture between TransCanada Corporation and Shell designed according to its sponsors "to address energy shortages threatening the Long Island Sound region of New York and Connecticut." The plan called for a floating facility moored in the Sound to receive imports of liquified natural gas in tanker ships. The cooled liquid fuel would be warmed back to a gas and then delivered through existing pipelines.

The idea of a massive floating gas tank 1200-feet long, 180-feet wide and 80-feet tall rubbed elected officials in Connecticut the wrong way. Democratic Attorney General Richard Blumenthal opposed Broadwater from the start, and Republican Gov. Jodi Rell eventually joined the opposition. Together they lobbied New York's new Gov. David Paterson to reject Broadwater. The project needed various New York permits to proceed.

Broadwater scored early on with the Federal Energy Regulatory Commission (FERC). That panel "green-lighted" the project in a unanimous vote back in March. Big deal said critics. In their view, FERC is a puppet of the Bush administration, a regime that always sides with the energy industry.

One can only speculate how Broadwater would have fared if Eliot Spitzer was still governor of New York. Spitzer's political demise and resignation after escapades with prostitutes put David Paterson in the governor's seat. Paterson seems to share Connecticut's view of Broadwater.

In a Long Island press conference, going on as Rell and friends were celebrating at Milford's Silver Sands State Park, Paterson officially rejected the Broadwater project. He said it was improper to cede a section of the Sound to a private company, and explained that, in his view, Broadwater was "never the be-all and end-all for Long Island's energy future."

So what happens now? Blumenthal warned Broadwater still could float. He said the project's backers can appeal New York's negative ruling to the U.S. Commerce Secretary, claiming Broadwater is vital to the nation's energy security. Or, they could take their case to federal court.

However, New York's decision is crucial and likely means Broadwater is taking on water. Broadwater is not the only LNG terminal proposed for the Eastern Seaboard. Many energy analysts believe the game was "first in the water" wins the competition. If Broadwater cannot move forward swiftly and must wage an extended legal battle (something Connecticut and New York together will be happy to undertake), its viability will erode.

It is also true that the Bush administration is in its final months. Broadwater opponents figure that whoever becomes president, Republican John McCain, or a Democrat, Barack Obama, or Hillary Clinton, will judge the energy vs. environment issue more fairly than Bush.

Legal appeals take time. Broadwater's backers could have some new moves up their sleeves, but political reality may set in. Other LNG projects, including BlueOcean Energy (backed by Exxon Mobil), and targeted for a spot in the Atlantic 20 miles off New Jersey, could begin to look more attractive. Broadwater may have to pull up its anchors (even if they exist only on the drawing board) and sail into the sunset.

 

Posted 4/14/08

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