Trump administration pushes New York pipeline projects to ease energy costs

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(The Center Square) — The Trump administration is backing a pair of natural gas pipeline projects that industry experts say could lower costs for New York consumers, but the push to bring more gas to the northeast faces legal challenges and opposition from elected officials. 

The Department of Energy announced this week that it is pumping $42 million into reviving the 125-mile Constitution Pipeline, which would carry fracked natural gas from Pennsylvania to New York, saying the move will provide New York and other Northeast states with more access to cheaper fuel. The money, from a defense department fund, will be used for engineering, pre-construction work and permitting costs to help get the long-stalled project back on track. 

Meanwhile, the Energy Department is also pushing for construction of the Northeast Supply Enhancement pipeline, which would run from shale-rich Lancaster County, Pa., through New Jersey to New York City. It calls for building nearly 24 miles of new pipeline, most of which would run under New York Harbor.

Energy Secretary Chris Wright said this week that the pipelines could cut heating and electricity bills and help improve the reliability of the regional grid by preventing blackouts during peak demand.

"Despite America having an abundant supply of low-cost natural gas, tens of millions of Americans have limited access to this reliable energy source due to a lack of pipeline infrastructure," Wright said in a statement. "President Trump promised to lower energy costs and reverse the energy emergency he inherited that was caused by 17 years of energy subtraction policies."

But both projects face legal challenges and myriad regulatory hurdles, with Democrats and environmental groups pushing back, claiming they will damage the environment and saddle consumers with the cost of expanding fossil fuel systems even as the state moves towards wind, solar, and other renewable energies.

The Constitution project was originally proposed in 2012 and was granted federal permits in 2014. But New York regulators denied a key water-quality certification permit two years later, sparking a multi-year court fight over the project that eventually prompted the developers to abandon it. 

The Williams company resurrected the project last year and asked FERC to reissue federal permits for the pipeline expansion. The developers face numerous state and federal regulatory hurdles and the likelihood of legal challenges. 

Williams Companies spokeswoman Cherice Corely said the company "remains committed to working through the regulatory process to advance this important infrastructure project." 

"The Northeast continues to face significant natural gas supply constraints that drive up energy costs for families and businesses and increase reliance on higher-emission fuels," Corley told The Center Square. "The Constitution pipeline is designed to help address those challenges by delivering reliable, affordable energy to the region while supporting economic growth and emissions reductions."

In September, the U.S. Court of Appeals for the Second Circuit sided with environmental groups, overturning the New Jersey State Department of Environmental Protection's decision to approve a water quality certification for the NESE pipeline. Developers have appealed the ruling. 

Zilvinas Silenas, president and CEO of the Empire Center for Public Policy, said New Yorkers are paying some of the highest electricity costs in the nation and bringing more natural gas to the state will help lower utility bills. 

"Having a source of reliable, cheaper energy, would undoubtedly be a major benefit to New York and the region," he told The Center Square. "It's unfortunate that New York leaders are dragging their feet on it. New York needs more energy badly." 

Democratic Gov. Kathy Hochul has expressed support for the NESE pipeline but has vowed to oppose the Constitution pipeline project despite increasing pressure from the Trump administration to sign off on it.

A Hochul spokesperson called the Energy Department's pledge of funding for the project "nothing more than a political ploy to divert attention from Trump's tariffs and his reckless war in Iran that have not only failed to bring down prices as the President promised but have dramatically driven up home energy costs and gas prices at the pump." 

“While the President continues to obsess over blocking renewable energy projects in order to focus on gas, oil and even coal, Governor Hochul is focused on driving an all-of-the-above energy strategy designed to keep the lights on and costs down for New Yorkers,” Ken Lovett, Hochul’s senior communications adviser on energy and environment, said in a statement.

Besides legal challenges for environmental groups and pushback for the state, the Constitution project also faces local opposition with several communities along its proposed route through the Caskill's passing resolutions urging state regulators to reject it.

President Donald Trump has framed the natural gas projects as part of broader efforts to reduce costs and boost the nation's domestic energy supplies. He has signed executive orders and directed federal agencies to expand pipeline development by expediting permitting, while also taking actions to increase liquefied natural gas exports.

Industry groups have long argued that high energy costs in the Northeast are being driven in part by a lack of natural gas capacity. Under the Biden administration, several gas pipeline projects were blocked.

"Some of the most abundant and inexpensive gas is available in the Marcellus Shale, and if we could move more of that gas into the northeast it would be a really good thing for the region," said Alana Daly, vice president of communications and public policy for the Northeast Gas Association, told The Center Square. "We want consumers buying the cheapest gas possible. That's what these pipeline projects would provide."