The status of the Atlantic Coast Pipeline according to the Friends of Wintergreen

The entire ACP project was shut down in July 2020. This overview of the status of ACP was sent out via email by Jonathan M. Ansell, Chairman of the Friends of Wintergreen, on December 29, 2019.

As is our custom this time of year, we'd like to share with you a recap of where things stand with the Atlantic Coast Pipeline and a preview of what Friends of Wintergreen will be watching and doing in the months ahead. 

First Some Good News

You can count 2019 as another year when the growing Virginia and MidAtlantic economies survived without Dominion’s Atlantic Coast Pipeline (ACP). 

It seemed like ages ago when Dominion first proposed the ACP.  Back in September 2015, their initial pipeline application to the Federal Energy Regulatory Commission (FERC) was accompanied by an urgent request for an expedited review to avoid the deleterious effects of another polar vortex and growing energy needs.  

The planned in-service date at that time was the Fall of 2018. The earliest installation date is now projected to be 2022 – assuming it gets built at all. Construction has been stopped -- at least for now.  

So what happened?  And where do things stand?

The No-Show Energy Crisis

The much-anticipated energy shortage predicted by Dominion never quite materialized for Virginia (except for the growth in NoVA data centers whose environmentally-friendly owners are demanding energy from renewable sources and not fossil fuel from the ACP.)   

To make matters worse, a recent S and P Global Market Intelligence Report noted that “[Dominion Energy] has consistently over-forecast electricity demand to justify building new capacity, primarily natural gas plants with dubious economics that will ultimately be paid for by ratepayers.”  Furthermore, the latest energy industry reporting shows the gas supply has far outstripped demand.

Climate Change

During the same period, environmental issues have moved to center stage.  Since 2015 we’ve seen broader acceptance that climate change is real, accelerating and should be urgently addressed.  Fossil fuel, even natural gas, contributes to the problem. Fortunately, renewable energy solutions are rapidly emerging as viable alternatives.

Dominion Still Wants Its ACP

Despite all this, Dominion Energy still wants its ACP, even as its costs increase by 40% over the original estimate.   The same applies to the project’s other lead partner, Duke Energy, which has just announced it wants to refinance its share of the project.

Construction on the pipeline has been suspended since December 2018 because the ACP has been unable to secure the required permits and certificates.  To get the project restarted, the company appears to be pursuing at least two strategies: court challenges and federal legislation.

Court Challenges to Permits and Certificates

There are several important cases still in play:

  1. Forest Service Permit (US Supreme Court): This seminal case (Cowpasture River Preservations Association, et. al. vs. Forest Service) is now before the US Supreme Court, as lower courts ruled that the US Forest Service did not properly evaluate the environmental threats and, relevant to this court, the agency did not have the authority to issue a permit for a pipeline under the Appalachian Trail.  Initial briefs were filed earlier this month. The case will be heard by the Court on February 20, 2020, and a ruling is expected by June 2020. While Wintergreen is not a direct party to this case, we are the community closest to the Appalachian Trail drilling location.  Because of this, we are submitting an amicus brief in January to explain our unique situation and to support the lower court’s rejection. The Cowpasture case pits communities like ours and environmental groups against the fossil fuel industry and Trump Administration.

  2. FERC Certificate (US Court of Appeals):  Friends of Wintergreen, Wintergreen Property Owners’ Association, and the Fairway Woods Condominium Association filed a suit in the US Fourth Circuit of Appeals.  Our action, along with those from other groups, is on hold pending the outcome of #1 above.  In our brief, we presented the unique environmental and safety issues and alternatives that impact Wintergreen.

  3. US Fish and Wildlife Service Statement (US Court of Appeals):  This Federal Agency’s opinion on threats to endangered species from the ACP was voided twice by a federal court.  As a result, all construction is on hold pending the approval of a new permit (and resolution of #1).

Legislation

For most of the year, it was reported that Dominion was seeking a rider attached to other legislation that would, in effect, overturn the court decision that vacated the permit to cross the Appalachian Trail.  

It is no secret that Dominion has friends in the Trump Administration.  (For example, Attorney General William Barr was, until February of this year, a board member of Dominion and his direct report, the US Solicitor General,  joined Dominion in the US Supreme “Cowpasture” case.) 

Within the past week, two prominent federal bills were believed to be possible vehicles for the Dominion rider – the National Defense Authorization Act and the continuing resolution funding the Federal Government.  Fortunately, both passed without provisions addressing the Appalachian Trail issue, in part because of more than 1,000 + emails and calls to Representatives and Senators by our community members

Next Steps

At this point, we see three next steps:

  1. Wait for the final court decisions, especially the Supreme Court (Cowpasture) case, when a decision is expected by June 2020.  In our view, a ruling on this case will be a “make or break” decision for the ACP. 

  2. Maintain vigilance for any riders to federal legislation that could give Dominion authority to build the ACP under the Appalachian Trail.  We support an open, honest debate on pipelines and energy, but do not welcome efforts to sneak a rider into unrelated legislation with no transparency or debate.

  3. If the Supreme Court rules in favor of the project in a way that will negatively impact Wintergreen, we will continue to pursue our FERC lawsuit and coordinate with landowners to activate the planned Inverse Condemnation lawsuits.