The New York Department of Environmental Conservation (DEC) this week adopted long-anticipated regulations establishing a permitting program for the siting, construction and operation of liquefied natural gas (LNG) facilities. (6 NYCRR Part 570.) These regulations, which will become effective February 26, 2015, will allow for the development of new LNG facilities in New York state for the first time in nearly 40 years. The regulations were first proposed by DEC on September 11, 2013. Following several public information meetings and public comment periods, DEC revised the regulations to include an upper limit of 70,000 gallons as the total amount of LNG that may be stored at a permitted LNG facility.
New York has not allowed new LNG facilities in the state since 1976, after an explosion on Staten Island killed 40 workers. Although the statutory moratorium was lifted for all areas outside New York City in 1999, the ban effectively remained until the DEC passed regulations. The regulations have no effect on the moratorium that still prohibits new LNG facilities within New York City.
The regulations also address the transportation of LNG, prohibiting the intrastate transportation of LNG unless the route has been certified by the New York Department of Transportation (NY DOT). The regulations, however, exempt LNG fuel tanks used to power trucks and other vehicles from the permitting requirement. According to DEC's Revised Summary of Express Terms, the NY DOT has determined that since certified routes are not established for other hazardous materials, it would be impracticable to establish certified routes for intrastate transportation of LNG, and accordingly, intrastate transportation of LNG will not be authorized under the regulations. The regulations do not require certification of interstate LNG transportation routes.
DEC's regulations require that LNG facilities comply with the National Fire Protection Association siting standards, which prescribe, among other things, setbacks, evacuation requirements and tank capacities. Further, LNG facilities that transfer LNG to and from trucks, rail cars, or marine vessels must comply with the U.S. Department of Transportation's Pipeline Safety Regulations, 49 CFR Part 193, Subchapter D, or the U.S. Coast Guard's Navigation and Navigable Waters Regulations, 33 CFR Part 127, as applicable.
The regulations provide for DEC site inspections and require that the applicant offer training, at its own cost, to local emergency response personnel. The regulations also require the closing of out-of-service LNG storage tanks or facilities and prompt spill reporting for spills of one gallon or more of LNG at an LNG facility, or lesser amounts that result in a fire or an explosion.
DEC estimates that the most common LNG facilities to be permitted under the regulations in the first five years will be fueling facilities that are designed to serve long-haul trucking and commercial fleet operations.
Should you have any questions regarding DEC's regulations, please feel free to contact any of the attorneys listed in the sidebar.
Day Pitney Alert
Flossie Davis, Thomas Havens and Jennifer Galiette wrote an article, "NY Retail Electricity Order Vacated — For Now," for Law360. The article is about the recent decision by the Supreme Court for the County of Albany, New York, to vacate key directives of the New York Public Service Commission (PSC) in its "Order Resetting Retail Energy Markets and Establishing Further Process" issued on Feb. 23, also known as the PSC reset order.
Day Pitney Alert
Jennifer Galiette wrote an article, "State Strategy to Focus on Energy, Building Processes and Transportation," for The Connecticut Law Tribune. The article is about the Connecticut Department of Energy and Environmental Protection's (DEEP) announcement in May that it is beginning to develop a new statewide Comprehensive Energy Strategy (CES) for Connecticut.
On July 12, Day Pitney partner Beth Barton, President of the New England Women in Energy and the Environment (NEWIEE), will welcome attendees at NEWIEE’s second annual panel in the "New England Women Shaping the Agenda in Energy and Environment" series. This year, this event will take place at Tufts University in the ASEAN Auditorium at The Fletcher School in Medford, Massachusetts. The panel, including Maryrose Sylvester, President and CEO of Current, Powered by GE; Cheryl Warren, National Grid USA Board Director and Innovation Strategist; and Cynthia Arcate, President and CEO of PowerOptions, will discuss the business behind getting to clean energy and environment. Professor Barbara Kates-Garnick of the Fletcher School and Center for International Environment and Resource Policy will be the moderator for the panel discussion. Registration is open for the event on NEWIEE’s website.
Joe Fagan was quoted in an article, "Pipeline Fights May Determine Scope Of Climate Reviews," in Law360. The article is about how an increase in legal challenges by environmental groups claiming that the Federal Energy Regulatory Commission must examine the climate change impacts of increased natural gas drilling before approving pipelines could help define the boundaries of a landmark 2004 U.S. Supreme Court ruling that limited the scope of federal environmental reviews to actions within an agency's authority.
Joe Fagan was quoted in an article, "NY Nuke Plant Subsidies Will Likely Face Legal Battle," in Law360. The article is about the challenges that nuclear plant subsidies offered by New York state in its newly announced clean energy standard will likely face due to a U.S. Supreme Court's recent decision.
Harold Blinderman was quoted in a Law360 article,"EPA's 40-Year Battle For Water Cooling Regs: A Cheat Sheet," which reviewed the status of litigation currently before the Second Circuit Court of Appeals challenging federal environmental regulations regarding the usage of cooling water by existing power plants and factories.
Hartford, Conn, June 9, 2016 - Day Pitney LLP is pleased to announce that David Doot has been selected as an Energy & Environmental Trailblazer by The National Law Journal, which profiles the top 50 business leaders in the energy and environmental space.
Jennifer Galiette has been elected Chair of the Energy, Public Utility and Communications Law Section of the Connecticut Bar Association for a term of two years. In her new role, she will be in charge of planning Section meetings and organizing educational and professional events for the Section’s more than 100 members. Galiette also serves as a member of the Section’s Executive Committee. She has been involved with the organization for over seven years, and has previously served as Treasurer, Secretary and Vice Chair of the Section.