Business-Labor Coalition Enters Pipeline Debate

Proposed route of Atlantic Coast Pipeline.

Proposed route of Atlantic Coast Pipeline.

by James A. Bacon

More than 100 business, labor and economic development organizations have announced the formation of an advocacy group, EnergySure, to promote the Atlantic Coast Pipeline. The founding members “represent millions of employees and associates across Virginia, West Virginia and North Carolina,” says the organization’s press release.

EnergySure is being funded by the four Atlantic Coast Pipeline partners: Dominion, Duke Energy, Piedmont Natural Gas and AGL Resources. “The ACP partners serve millions of homes and businesses that depend on the companies to meet their energy needs,” states the group’s website. “The EnergySure Coalition was created as a platform for these consumer voices to be heard.”

The proposed 550-mile pipeline would transport natural gas originating from fracked natural gas fields in West Virginia to markets in Virginia and North Carolina.

The advocacy group comes together in response to spirited opposition by landowners along the proposed route, especially in bucolic Augusta County and Nelson County in Virginia. Led by the All Pain No Gain group, foes say the pipeline would harm property values, contaminate water, pose a safety risk and negatively impact local craft agriculture while doing little to create jobs or lower energy prices.

EnergySure hits three main themes in support of the pipeline:

Reliable energy. Virginia and North Carolina need a reliable supply of natural gas to support economic growth. Utility demand for natural gas is expected to triple as power companies in Virginia and North Carolina retire coal-fired power plants and burn cleaner natural gas in its place. Pipeline advocates also assert that existing pipelines are approaching maximum capacity and the inability to bring more gas into the region will make it difficult to recruit manufacturers that require natural gas in their processes.

Economic development. Pipeline construction will support 17,240 jobs across Virginia, West Virginia and North Carolina, asserts EnergySure. Longer term, the pipeline also will save Virginia and North Carolina consumers $377 million yearly over the next 2o years, which in turn will stimulate local economies.

The money consumers save on energy each year could help support 2,200 jobs when reinvested back into Virginia and North Carolina’s economies. Over the next 20 years, the Atlantic Coast Pipeline is projected to generate $7.5 billion in energy savings, $2.6 billion in labor income and $4.4 billion in gross state product to Virginia and North Carolina.

Another bonus: Projected cumulative property taxes are estimated at $25 million annually.

(The website does not say where the economic impact numbers come from. The data comes from a report, “The Economic Impacts of the Atlantic Coast Pipeline,” written by ICF  International, a Northern Virginia professional services firm, for Dominion Transmission Inc. ICF utilized its Gas Market Model and Integrated Planning Model to model the North American gas and electric markets with and without the pipeline. )

Green energy. Two waves of federal regulation — one enforcing stricter standards for emissions of toxic chemicals and the other curtailing carbon dioxide — leave Virginia and North Carolina power companies with little choice but to substitute natural gas for coal in their fuel mix. In addition, gas-fired power plants serve as back-up for solar and wind power, whose power output varies with time of day and weather conditions.

As for local environmental impact, EnergySure concedes that there will be “temporary disruption” during the construction phase, but that “most of the land” the pipeline crosses will return to its original land use. Also, inspectors will be conducting tests through the construction process to ensure water quality remains the same as it was before.

Bacon’s bottom line. With the publication of the EnergySure and All Pain No Gain websites, the battle lines are drawn and the issues clear for all to see.  At the moment, the conflict is shaping up as a David and Goliath contest: rural landowners in Nelson and Augusta counties pitted against the business, labor and economic development establishments of three states.

It remains to be seen how two important constituencies align themselves. Outside property rights groups have not yet played a vocal role in the debate so far, although one would think that they would sympathize with local landowners. Another potential ally, the environmentalist movement, appears to be conflicted. Environmentalists typically side with landowners seeking to protect the local environment against disruptive construction projects, and some environmental groups oppose anything that would promote the production and consumption of fossil fuels (including natural gas) for any reason. On the other hand, pragmatists in the environmental community recognize that the energy economy cannot transition away from coal without more natural gas. To date, major environmental groups have kept a low profile in the pipeline debate.

Politically speaking, the entry of dozens of business, labor and economic development organizations on the side of the pipeline partners would seem tip the odds strongly in favor of the pipeline.

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5 responses to “Business-Labor Coalition Enters Pipeline Debate

  1. About their No. 3 theme: The real green energy is solar. Natural gas may not give us fly ash or sulfur dioxide, but significant methane is released at the wellhead and the producers haven’t mastered how to capture that greenhouse gas.

  2. “Major environmental groups have kept out of the debate?” Are you nuts? Or just counting your money?

    • I said they’ve kept a “low profile.” I haven’t been seeing the usual studies, reports, press releases, etc. issuing from them. The pipeline doesn’t seem to be their foremost concern.

      If I’m wrong, please point me to evidence to the contrary.

      I’ll be checking in with them in any case.

  3. Why does this “coalition” sound like a bunch of like-minded energy lobbying groups?

    😉

  4. I had an interesting conversation with a Nelson County builder/Realtor who fully understands that it is the forest of “No Pipeline” and “All Pain No Gain” signs blanketing the county and its roads that is driving away buyers. The pipeline itself is not viewed by many as a problem or a safety risk. He is just eager to see the issue decided, a route chosen and the project built and buried.

    This coalition provides some PR balance, I guess, but FERC will make its decisions on other factors (demand for the product, mainly) and then I guess we move on to the courts.

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