Environment, Governor Roy Cooper, Legislature

FERC approves construction to begin in NC on Atlantic Coast Pipeline; status of $57.8 million fund still uncertain

The segments in red indicate where construction on the pipeline is to begin this year; construction is scheduled for 2019 along the segment in blue. (Map: Atlantic Coast Pipeline)

The Federal Energy Regulatory Commission is allowing construction of the Atlantic Coast Pipeline to begin in North Carolina, according to a notice issued late yesterday.

But it’s unclear what this final approval means for the $57.8 million escrow fund agreed to by Gov. Roy Cooper and Dominion Energy and Duke Energy.

Construction had already begun on the compressor station near Pleasant Hill in Northampton County, as well as an office building and a metering and regulation station . The FERC notice now allows ACP, LLC, which is co-owned by Dominion Energy and Duke Energy, to start major excavation along most of the route.

Construction has been occurring in West Virginia for several months; however FERC has yet to give final approval for it to begin in Virginia.

FERC’s approval would have also triggered the launch of a $57.8 million escrow account, under a controversial Memorandum of Understanding between Gov. Cooper and Dominion Energy, signed on Jan. 25. Under that voluntary agreement, Dominion and Duke were to deposit half that amount –$29 million — into the account upon receiving FERC’s final notice to proceed.

That money was to be used for environmental mitigation — even though those measures had been requirement in state environmental permits — renewable energy, and to enhance economic development in communities along the route. One of ACP, LLC’s  main talking points was that the pipeline itself would spark economic development. But many critics of the project noted that it would cost millions of dollars for industry to connect to the pipeline. This money would have presumably helped with those connection fees, although it’s unclear how and who would determine the recipients of the funds.

But the legislature passed a law earlier this year to negate the agreement. Instead, the money would go to school districts in counties along the route. However, since the MOU was voluntary and between the utilities and the governor, the new law jeopardized the fund. Duke Energy spokeswoman Tammie McGee said that details on the utilities’ disbursements are not yet fleshed out.

 

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