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Business Groups Push for NESE Pipeline Approval in New York

Illustration of the NESE Pipeline in New York

News Summary

Business advocates in New York are calling for the Northeast Supply Enhancement (NESE) project, a natural gas pipeline expansion, to be approved in response to rising energy demands. The $1 billion project aims to extend an existing pipeline from Pennsylvania to help power 2.3 million homes and maintain electrical grid reliability. While supporters highlight the benefits for economic stability and electricity prices, environmental organizations express concerns over ecological impacts and climate commitments. The NESE project faces renewed scrutiny as public commentary begins on its revised plans.

New York City – Business groups in New York are advocating for the approval of the Northeast Supply Enhancement (NESE) project, a natural gas pipeline extension that aims to address the region’s growing energy demands. The project, which seeks to extend an existing pipeline from Pennsylvania into New York City and Long Island, has garnered renewed support following previous rejections largely due to environmental concerns.

Advocates for the NESE project, including major companies like National Grid and developer Williams, argue that the $1 billion expansion could supply enough natural gas to power over 2.3 million homes. They assert that the project is essential to address a critical lack of energy capacity in the region, which has seen increasing electricity demands. Business groups contend that the pipeline will lower electricity prices and enhance the reliability of New York’s electrical grid, which many believe is vital for the economic stability of the area.

The NESE project had been previously rejected due to significant environmental impact considerations, particularly regarding sensitive habitats and water quality. However, it was revived in May following discussions between Governor Kathy Hochul and President Donald Trump. Reports suggest that Trump lifted a work order on a controversial Long Island wind farm in exchange for Hochul’s reconsideration of the pipeline expansion. Just recently, National Grid submitted revised plans to the New York Public Service Commission in July, initiating a public feedback period for the project review.

Supporters of the NESE project, including a coalition comprising the Association for a Better Long Island and the Long Island Builders Institute, emphasize the importance of balancing energy reliability with sustainability. They believe that without an adequate pipeline infrastructure, the Northeast’s energy market will remain constrained, leading to increased energy costs for consumers. Robert Fonti, chairperson of the Suffolk County Alliance of Chambers, has pointed out that the expansion is vital for local businesses and is necessary for future resilience against impending energy challenges.

Despite the push from business advocates, significant opposition exists from various environmental groups. These organizations argue that the proposed pipeline contradicts New York’s goals of reducing greenhouse gas emissions and undermines its commitment to achieving a zero-emission power grid by 2040. Earlier decisions by the New York Department of Environmental Conservation rejected permits for the NESE project, due to the potential ecological risks it poses. Critics also express concerns about the potential for hikes in utility rates; New York City Comptroller Brad Lander has warned that the project could result in an additional $200 million in annual utility costs for National Grid customers over 15 years. Lander accused Hochul of neglecting essential climate mandates in reviving the project without adequate public engagement.

The debate surrounding the NESE pipeline is further complicated by recent actions and policies related to offshore wind energy by the federal government. As energy infrastructure continues evolving, Trump is expected to further address the pipeline’s status during a meeting with Hochul, underscoring the urgency for resolution and indicating a willingness to utilize federal authority if state approval is delayed.

As the New York Public Service Commission gathers public input, the outcome of the NESE project remains uncertain, balancing the pressing need for energy infrastructure against the critical concerns for environmental protection and climate change commitments.

Deeper Dive: News & Info About This Topic

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Additional Resources

STAFF HERE NEW YORK WRITER
Author: STAFF HERE NEW YORK WRITER

NEW YORK STAFF WRITER The NEW YORK STAFF WRITER represents the experienced team at HERENewYork.com, your go-to source for actionable local news and information in New York, the five boroughs, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as New York Fashion Week, Macy's Thanksgiving Day Parade, and Tribeca Film Festival. Our coverage extends to key organizations like the Greater New York Chamber of Commerce and United Way of New York, plus leading businesses in finance and media that power the local economy such as JPMorgan Chase, Goldman Sachs, and Bloomberg. As part of the broader HERE network, including HEREBuffalo.com, we provide comprehensive, credible insights into New York's dynamic landscape.

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