ALBANY, N.Y. -- After putting the skids on the Northern Access and Constitution pipelines, the administration of Gov. Andrew M. Cuomo has blocked another major natural gas project.

The New York Department of Environmental Conservation on Thursday rejected a $57 million, 8-mile pipeline spur that would feed a $900 million, 680-megawatt power plant now under construction in Orange County.



The DEC said the Federal Energy Regulatory Commission failed to consider the climate impacts of the Valley Energy Center power plant that would be served by the Millennium Pipeline Co. spur. The state regulators called FERC's review of the Valley Lateral "inadequate and deficient."



New York regulators in their denial letter cited a recent federal court decision. The U.S. Court of Appeals for the District of Columbia ruled in August that FERC should have considered greenhouse gas impacts when approving a pipeline in the Southeast last year.



That landmark ruling, which handed victory to the Sierra Club, found that FERC "failed to consider or quantify the downstream greenhouse gas emissions from the combustion of the natural gas transported by the project" -- in other words, the climate impact of power plants that would use the fuel.

Project foes had argued that the impacts of the pipeline and the power plant should be considered together, and not separately.

What the decision means for the power plant remains unclear, although project backers Thursday said they would move ahead.



The president and CEO of Competitive Power Ventures told the Times Herald-Record that the Millenium pipeline will still be approved, and that the CPV power plant will start up in 2018 operating on backup fuel oil if necessary.

CEO Gary Lambert said state regulators overstepped their authority, and that the DEC's "collateral attack" could affect New York's ability to attract future investment. He said the power plant is 80 percent complete, that natural gas is a clean fuel, and that CPV has already invested millions.



Federal approval of the Millenium pipeline is contingent upon its gaining state permits, including a Section 401 certification under the Clean Water Act. Thursday's decision, although centered in a climate argument, denied the water certificate.

Court upholds state's right to block pipeline under Clean Water Act



"It does not appear to be a clear-cut decision and our lawyers are reviewing it to determine how to proceed," a lawyer for Millennium told the Times-Record.

The line would cross 23 wetlands, clear 117 acres of land, and harm nearby streams, according to the Natural Resources Defense Council. The project has been opposed by groups such as Protect Orange County and Preserve Hudson Valley.



The Valley Energy Center already won its air permits from the DEC. However, the permits restrict the plant to operating on fuel oil to 30 days per year.



Debate continues over whether natural gas can be a "bridge" to carbon-free renewable energy, or whether the fossil fuel must be fought to block climate change.

Massachusetts stakeholders have been watching New York because of its potential role as a gateway to pipeline systems in New England.

Mary Serreze can be reached at mserreze@gmail.com