https://news.littlesis.org/2018/02/07/will-phil-murphy-stop-the-penneast-pipeline/
[links and infographics in on-line article]
Will Phil Murphy Stop the PennEast Pipeline?
By Derek Seidman
February 7, 2018
Governor Phil Murphy, still less than a month into his first term, has
articulated a bold vision for New Jersey’s environmental and energy
future, and he’s indicated that he wants to stand up to the fossil fuel
industry.
He supports a permanent ban on fracking at the Delaware River Basin. He
brought New Jersey back into the Regional Greenhouse Gas Initiative
(RGGI), a nine-state cap-and-trade agreement. He’s called for 100% clean
energy in the state by 2050.
But a big question mark looms over Murphy: will he stop the PennEast
Pipeline?
PennEast is a proposed 120-mile pipeline that will deliver fracked
natural gas from Luzerne County, Pennsylvania, to Mercer County, New
Jersey. And as our new report shows, it’s positioning itself to
influence the new administration, with five lobbyists in the Murphy
transition, including a former top advisor to Cory Booker.
PennEast’s Attempt to Sway Murphy through Lobbyists and Donations
Two key owners of the pipeline – New Jersey Resources and South Jersey
Industries – are based in New Jersey, and New Jersey’s Department of
Environmental Protection has to approve the pipeline before construction
can begin.
In other words, what happens in New Jersey, and what Governor Murphy
chooses to do, will ultimately decide the pipeline’s fate.
It’s no surprise, then, that PennEast is trying to sway Murphy in a
number of ways – most notably by filling his transition team with five
pipeline lobbyists.
PennEast coughed up $260,270 – over a quarter-million dollars – for
lobbying in 2016 alone (2017 numbers should be available soon). Here are
the lobbyists – all from two powerful firms, Princeton Public Affairs
Group (PPAG) and Mercury LLC – who made it into Murphy’s transition
committees:
Michael Soliman, Mercury. Soliman was a top strategist for NJ
Senator Cory Booker. He was also Senator Robert Menendez’s State
Director, New Jersey Chief of Staff, and spokesperson. Soliman was
appointed to Murphy’s Transportation and Infrastructure Committee.
Christina Zuk, PPAG. Zuk was Chief of Staff and campaign political
director for former New Jersey State Senator Barbara Buono. She’s the
Executive Vice President of the New Jersey Young Democrats of America
and is also dating NJ State Senator Vin Gopal. Zuk was appointed to
Murphy’s Budget Committee.
William Pascrell III, PPAG. Pascrell advised former New Jersey
Senator and Governor Jon Corzine, Senator Robert Menendez, and Governor
James McGreevey. His father is a longtime member of Congress from New
Jersey’s 9th district. Pascrell was appointed to Murphy’s Transition
Counsel Committee.
David Smith, PPAG. Smith is a well-connected lobbyist tied to major
national lobbying groups, including the Advocacy Group and Public
Affairs Council. He was appointed to Murphy’s Environment and Energy
Committee.
Sonia Delgado, PPAG. Delgado has longtime ties to New Jersey
Democratic party initiatives and committees. She was appointed to
Murphy’s Healthcare Committee.
One striking thing about these pipeline lobbyists are their close ties
to the New Jersey Democratic Party, including US senators, former
governors, and state legislators. The Democrats control New Jersey by
large majorities. The party is divided over fracking and fossil fuel
pipelines, with a rising swath of the Democratic base opposing them.
While these are just five of PennEast’s lobbyists, they have nearly a
dozen more revolving door lobbyists in New Jersey and Pennsylvania, most
with close ties to powerful politicians and regulatory entities. And if
that wasn’t enough, a Koch brothers-backed lobbying group is lobbying
for PennEast at the federal level.
(Again, all this is laid out in more detail in our new report).
Furthermore, just five PennEast execs and lobbyists showered Murphy with
over $23,000 in campaign contributions during his gubernatorial run.
New Jersey Resources – a 20% pipeline owner – has two execs,
including CEO Larry Downes, who gave a total of $12,900 to Murphy.
Two PennEast lobbyists – PPAG’s Patti McGuire and Sonia Delgado –
gave a total of $2,000 to Murphy.
Energy industry lobbyist Edward Salmon, who also heads up the New
Jersey Energy Coalition, of which PennEast is an advisory member, gave
$8,300 to Murphy. Salmon was also appointed to Murphy’s transition team.
Pipeline Profiteering, Powerful Ties & Regulatory Conflicts
While attempts by PennEast lobbyists to sway New Jersey politics may be
news enough, our report lays out other unsettling findings about
PennEast. These include:
In its 2017 SEC filings and presentations to investors, PennEast
owner South Jersey Industries downplayed any need for the pipeline and
instead focused on the high profits it would bring it. SJI repeatedly
mentioned “FERC level returns” – a reference to the higher returns, set
by FERC, that come from an interstate pipeline. PennEast critics,
including the NJ Division of Rate Counsel, have speculated that this
promise of high profits is the core motivation behind the pipeline.
Moreover, SJI also emphasized the possibility for pipeline expansion – a
prospect that worries PennEast critics, especially with the looming lure
of LNG exports.
The top execs and directors of New Jersey Resources and South
Jersey Industries have close ties to important state entities and
influential groups in New Jersey – indeed, the leaders of these
corporations are embedded in a veritable web of power that projects
itself over state politics. The entities that these PennEast companies
are closely tied to include the NJ Chamber of Commerce (an SJI board
member is its head and SJI’s CEO is a Chamber director), the
subsidy-granting New Jersey Economic Development Agency (NJR’s CEO is a
director while another top NJR exec is a former NJEDA exec), and other
influential entities.
Significant conflicts exist within regulatory entities that must
approve the pipeline. For example, the Executive Director of the
Delaware River Basin Commission, which must approve the pipeline, was
formerly a top executive for American Water in Pennsylvania. American
Water is a pro-fracking wastewater company that is a member of the
Marcellus Shale Coalition, which counts a PennEast owner and shipper as
members. A former American Water CEO is on the board of Penneast owner
New Jersey Resources, while its CEO was a longtime exec at Southern
Company, another Penneast owner.
More on all this in our report.
Decision Time
Despite last month’s FERC approval, the Penneast Pipeline is reeling
from a string of setbacks. It’s application for a water quality permit
was rejected last Thursday by the NJ Department of Environmental
Protection – and this comes upon a previous rejection last June.
PennEast was told it needs to reapply for the permit yet again. And just
yesterday, the NJ attorney general rejected as insufficient PennEast’s
right-of-way request to build the pipeline through several parcels of land.
This controversial, unpopular pipeline is clearly on the defensive.
With a new green governor in office, New Jersey has a rare opportunity
to shut down the pipeline – which could emit as much greenhouse gas as
14 coal plants – and project a future that goes beyond destructive
fossil fuels.
So what will Murphy do?
[https://public-accountability.org/2018/02/the-power-behind-the-pipelines-penneast-pipeline/]