The pipeline has received federal approvals but New Jersey's Department of Environmental Protection must also make a decision on a water quality permit by June 20. | Hans Pennink/AP Photo Cuomo administration rejects Williams pipeline

ALBANY — Gov. Andrew Cuomo’s administration has blocked, at least for now, a controversial pipeline to supply natural gas to New York City and Long Island, setting up a potential moratorium on new gas service there.

The Department of Environmental Conservation found that the Northeast Supply Enhancement project, a 24-mile pipeline that would run from New Jersey across Raritan Bay and New York Bay to just off the Rockaways, would have significant environmental impacts on water quality. Specifically, the pipeline would stir up mercury and copper in sediments and disturb shellfish beds.


"As currently conceived in the application, construction of the NESE pipeline project is projected to result in water quality violations and fails to meet New York State's rigorous water quality standards," the agency said in a statement. The denial "without prejudice" means Williams, the project developer, can reapply.

Any new application would have to outline plans to mitigate impacts on shellfish and the re-suspension of copper and mercury, according to the letter sent by the DEC to the developer.

Williams spokesperson Chris Stockton said the company would resubmit its application quickly after evaluating what he called the “minor technical issue” raised by DEC.

“We are confident that we can be responsive to this technical concern, meet our customer’s in-service date and avoid a moratorium that would have a devastating impact on the regional economy and environment,” he said.

Cuomo’s decision is seen by environmental groups across the spectrum as a key test of his commitment to reducing emissions and his energy policy — recently rebranded as a “Green New Deal” — which is aimed at setting the state on a course away from fossil fuels and toward renewable energy.

Environmental advocates raised concerns with the emissions from the gas supplied by the pipeline and questioned the need for it in the face of alternatives such as heat pumps and energy efficiency. They also pointed to threats to marine life in the ecologically sensitive New York Bay from contaminated sediment stirred up by construction and other impacts to water quality.

“The state has made it clear that dangerous gas pipelines have no place in New York. This is a victory for clean water, marine life, communities and people’s health across the state,” said Natural Resources Defense Council senior attorney Kim Ong. “Along with our allies, we will continue to ensure this reckless project is shelved forever.”

The department's denial also cites concerns about emissions from greenhouse gas emissions.

"Because of these and other impacts from the construction and operation of the project, mitigation would be required and should adequately address these and other impacts," writes Daniel Whitehead, director of the Division of Environmental Permits.

Even though the company can reapply, the decision will likely have near-term repercussions on Long Island.

National Grid has repeatedly warned that without the additional supply from the NESE project, the company cannot provide guaranteed service to new gas customers. The utility has informed large and mid-size new projects seeking service that they may not receive firm gas supply on the coldest winter days when the system is at full capacity.

National Grid indicated it would not immediately impose a moratorium.

"We remain cautiously optimistic that the project will proceed on schedule and be in service for Brooklyn, Queens and Long Island customers by the winter of 20/21," spokesperson Wendy Ladd said in a statement. "Until we have greater certainty around the project’s application approval timeline, we will continue to advise all new commercial and residential applicants that our ability to provide firm gas service is contingent on the timely construction of NESE."

The pipeline has received federal approvals but New Jersey's Department of Environmental Protection must also make a decision on a water quality permit by June 20.

The Williams Co. may challenge the DEC’s decision. The permitting process allows for an administrative appeal of the agency's determination within 30 days.

The company has been aggressive in seeking to overturn New York state’s rejection of pipeline permits in the past, but has not yet seen much success in court.

The Federal Energy Regulatory Commission has overturned at least one DEC decision blocking a pipeline because the agency missed a one-year statutory deadline for action under the Clean Water Act.