U.S. Department of Commerce Announces a
Decision on Islander East Pipeline Project

The U.S. Department of Commerce today, May 6th, 2004, overrode Connecticut’s objection to a natural gas pipeline project proposed by the Islander East Pipeline Company (Islander East). Islander East proposed to construct a natural gas pipeline from North Haven, Conn., across Long Island Sound to Suffolk County, Long Island, N.Y. The pipeline is designed to transport 260,000 dekatherms (Dth) of natural gas per day, sufficient to heat approximately 600,000 homes and meet local gas company growth on Long Island. The pipeline will be a second route to serve eastern Long Island. The first route is owned by the Iroquois Pipeline Company.

The Department’s decision resulted from an appeal filed by Islander East under the Coastal Zone Management Act (CZMA) and concluded that the national interest furthered by the project – a major energy facility that is coastal dependent and fosters coastal zone development – outweighs its adverse coastal impacts and that no reasonable alternative is available.

Connecticut objected to the project because it found the coastal impacts to be inconsistent with its coastal management program. Islander East’s appeal requested the Department to override Connecticut’s objection.

The decision concluded that the impacts to shellfish habitat will be temporary in nature and limited in scope. The Commerce Department also rejected Connecticut’s suggestion that Islander East choose a shorter route across the Sound relying on a hookup to the existing Iroquois pipeline that serves Long Island. The Commerce Department concluded that it was uncertain whether Islander East could proceed with this alternate route and that the incremental benefits of the alternate route (possibly fewer impacts to coastal resources, primarily existing shellfish beds) did not outweigh the costs (loss of benefits associated with a second and separate pipeline route to eastern Long Island).

The CZMA gives the Department of Commerce a role in balancing the national interest with state coastal management concerns. Specifically, the CZMA authorizes the Secretary to override a state’s objection and allow the issuance of Federal licenses or permits for the project. In this case, Islander East appealed, asking the Secretary to override Connecticut’s objection. The full opinion and background materials on the CZMA can be found at http://www.ogc.doc.gov/czma.htm.