North American Megadam Resistance Alliance
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North American Megadam Resistance Alliance May 18, 2020 Christopher Lawrence U.S. Department of Energy Management and Program Analyst Transmission Permitting and Technical Assistance Office of Electricity Christopher.Lawrence.hq.doe.gov Re: Comments on DOE Docket No. PP-362-1: Champlain Hudson Power Express, Inc. and CHPE, LLC: Application to Rescind Presidential Permit and Application for Presidential Permit Dear Mr. Lawrence, The Sierra Club Atlantic Chapter and North American Megadam Resistance Alliance submit these comments on the above-referenced application of Champlain Hudson Power Express, Inc. (CHPEI) and CHPE, LLC (together, the Applicants) to transfer to CHPE, LLC ownership of the facilities owned by CHPEI and authorized for cross-border electric power transmission via a high voltage direct current line (the Project) by Presidential Permit No. PP- 362, dated October 6, 2014 (PP-362 or the Permit) .1 The Project is being developed by TDI, a Blackstone portfolio company. www.transmissiondevelopers.com Blackstone is a private investment firm with about $500 billion under management. www.blackstone.com The Sierra Club Atlantic Chapter, headquartered Albany New York, is responsible for the Sierra Club’s membership and activities in New York State and works on a variety of environmental issues. The Sierra Club is a national environmental organization founded in 1892. 1 On April 6, 2020, the Applicants requested that the Department of Energy (DOE) amend, or in the alternative, rescind and reissue PP-362 to enable the transfer of the Permit from CHPEI to its affiliate CHPE, LLC (the Application). On April 16, 2020, the Department of Energy (DOE) issued a Notice of “Application to Rescind Presidential Permit; Application for Presidential Permit; Champlain Hudson Power Express, Inc. and CHPE, LLC.” (the Notice). 85 Fed. Reg. 74 (April 16, 2020). https://www.energy.gov/oe/services/electricity-policy-coordination- and-implementation/international-electricity-regulation/pending-applications 1 The Sierra Club Atlantic Chapter has members and supporters with specific, concrete interests in issues raised by PP-362. The North American Megadam Resistance Alliance (NAMRA) is an alliance of groups and individuals whose mission is to protect rivers and their communities. NAMRA’s alliance includes groups and individuals living and working in Canada and in the State of New York who have a specific, concrete interest in the issues raised by PP-362. The Chapter and NAMRA (together, the Groups) submit the following comments on factors relevant to the public interest and the specific, concrete interests of the Groups’ members and supporters in DOE’s decision to grant or deny the Application. The Groups request that DOE deny the Applicants’ request for a new Presidential Permit unless and until Applicants file a new or amended Environmental Impact Statement (EIS) under the National Environmental Policy Act (NEPA) and DOE issues a new or amended Record of Decision (ROD). Background Applicants seek to develop the Project to connect electricity produced by Hydro-Quebec “in central and eastern Canada”, with “load centers around the New York City and southwestern Connecticut regions.” PP Application Jan. 25, 2010, 2.1. While Applicants and Hydro-Quebec claim the power for CHPE is “clean green and renewable” this is inaccurate as is well documented by peer reviewed science, numerous reports and testimonials by Indigenous community members and settlers in Canada. Hydro-Quebec produces electricity at 86 generating stations in Quebec, of which 62 are hydroelectric and 24 are gas and diesel. United States Securities and Exchange Commission, Form 18-K, for Foreign Governments and Political Subdivisions Thereof, Annual Report of Hydro- Quebec, Quebec, Canada, for the fiscal year ending December 31, 2019. (Form 18-K), p. 10. Hydro-Quebec thorough an affiliate sells and buys power generated by large dams, fossil fuels and nuclear in Manitoba, Ontario, New Brunswick and Nova Scotia. Form 18-K, p. 12. In addition to dams in Quebec, the sources of Hydro-Quebec power include the 5,428 MW Churchill Falls dam in Labrador and hydropower from international mining conglomerate Rio Tinto Alcan (RTA), which uses large dams to run its aluminum smelting operations. Form 18-K p. 11. https://www.cpcml.ca/Tmld2012/D42013.htm The Applicants’ mere five-page April 6, 2020 application states the Applicants “request that PP-362 be amended to name CHPE, LLC as the permittee, or in the alternative, rescinded and reissued to CHPE, LLC, to reflect the recent internal corporate restructuring that resulted in the creation of CHPE, LLC for business-related purposes.” Application, p. 4. Applicants’ officer filed a Verification Statement with the five-page application stating that the facts and representations in the Application are true and correct to the best of his knowledge. As shown below, substantial material facts in the Application are inaccurate and/or misleading. Moreover, material circumstances and assumptions upon which DOE based its 2 decision to grant PP-364 in 2014 have changed or are the subject of pending permit amendments with other regulators. Notably, the Applicants failed to disclose this in the April 6, 2020 Application. Before DOE can issue a new Presidential Permit to CHPE, LLC, DOE must determine the new permit is in the public interest. In making this determination, DOE will consider the environmental impacts of the proposed action and determine the project’s impact on electric reliability by ascertaining whether the proposed project would adversely affect the operation of the U.S. electric power supply system under normal and contingency conditions, and any other factors that DOE may also consider relevant to the public interest. DOE also must obtain the favorable recommendations of the Secretary of State and the Secretary of Defense before taking final action on a Presidential Permit application. As shown below, Applicants have failed to provide adequate information to show that the transfer of the permit and reissuance to a new entity meets the standards for issuance of a new permit. DOE cannot simply “change the name” on PP-362 to facilitate the corporate convenience of Blackstone/TDI and the Applicants while ignoring material and substantial inaccuracies and changes in the $3 billion project. 1. CHPE’s high-voltage direct current (HVDC) transmission corridor crosses the U.S.- Canada Border over land, not underwater as claimed in the Application and as approved in PP-362. The Application states the system will “cross the United States-Canada international border underwater near the Town of Champlain, New York…” Application, p. 3. This is inaccurate. Hydro-Quebec has no intention of bringing its transmission corridor across the border under water. Instead, the Hydro-Quebec corridor route crosses the border on land, near Rouses Point, a Village in the Town of Champlain, New York. The overland border crossing from Canada to the U.S. is described on Hydro-Quebec’s website. It shows Hydro-Quebec plans to bring the corridor south over land from its Hertel substation near Montreal. The route to the US border “comprises the construction of a 58 km long 32-kV underground direct-current (DC) line between the Hertel substation in La Prairie and the Canada-United States border…the new line will connect to the Champlain Hudson Power Express (CHPE) project currently under study in the United States.” https://www.hydroquebec.com/projects/hertel-new-york-interconnection/ (describing the April 2019 update, last visited 5/12/2020). The Hydro-Quebec website identifies the route as via Route 223 in Quebec to Route 11 into New York. https://www.hydroquebec.com/projects/hertel-new-york-interconnection/environmental- studies-line-routing.html The DOE 2014 Final Environmental Impact Statement (FEIS) for PP-362, Map S-2 shows Hydro-Quebec’s transmission corridor on land at the US-Canadian border. See, Figure S-2, FEIS Summary. The Overview in FEIS Vol. II, Section 1.1, states the transmission project will cross 3 the international border between the United States and Canada “near the village of Rouses Point, New York” which is in the Town of Champlain, thus also on land. By contrast, Figure S-2, FEIS Appendix 1, Map Atlas 1, shows the transmission corridor suddenly appearing out of the water at the Canada-US border the center of the Richelieu River. There is no description of how it gets from land in Canada and emerges submerged under water in the center of the River to cross the border. The Applicants’ map in its Army Corps of Engineers Section 404 permit contains the same inaccuracies. 4 These inaccuracies are reflected in Article 2 of PP-362 Order which states that a 1,000 MW HVDC voltage source converter controllable transmission system, comprised of one 1,000 MW HVDC pole “would cross the international border from Canada into the United States under water in Lake Champlain, in the Town of Champlain, New York.” (emphasis supplied) There is no documentation to support this statement in PP-362. These irreconcilable inconsistencies as to the border crossing location in the Applicants’ own documents and what Hydro-Quebec has planned for the location of the border crossing constitute a fundamental flaw in PP-362. The DOE cannot simply “reissue” PP-362 in the name of Blackstone’s new entity for Blackstone’s convenience. Rather, DOE must require the Applicants to submit a new or amended permit application with a revised environmental impact statement under NEPA that resolves the inconsistencies in the Applicants’ own maps and corrects the substantial, material factual errors as to this key aspect of PP-362. The revised Application must show the level of detail required by 10 CFR Section 205.322(b)(iii)(2): A general area map with a scale not greater than 1 inch = 40 kilometers (1 inch = 25 miles) showing the overall system, and a detailed map at a scale of 1 inch = 8 kilometers (1 inch = 5 miles) showing the physical location, longitude and latitude of the facility on the international border.