PennEast pipeline partner tempers forecast for construction

http://www.nj.com/mercer/index.ssf/2015/12/penneast_pipeline_partner_tempers_forecast_for_con.html

Tom Gilbert, of the New Jersey Conservation Foundation, said NJR’s recent forecast perhaps reflects difficulties with the state Department of Environmental Protection and the federal energy commission.

“It’s clearly significantly delayed and it’s going to be a long, difficult road for PennEast,” Gilbert said. “And I think there’s some question of whether they’ll be able to make it at all.”

The state DEP on Nov. 4 sent a 19-page letter to the federal energy commission outlining numerous concerns the agency has about the PennEast application, ranging from potential negative impacts on rare wildlife along the proposed pathway to the company’s construction schedule.

PennEast proposes a 7-month construction timeline, beginning in February, 2017.

“This proposed construction schedule does not, at this time, appear to be attainable,” the letter said.

The energy commission followed on Nov. 24 with letter to PennEast, giving the company 20 working days to provide a 22-page list of changes to the application and provide additional information before the commission could further evaluate the application.

Study Finds PennEast Pipeline Inflated Claims of Job Creation

http://www.njtvonline.org/news/video/study-finds-penneast-pipeline-inflated-claims-of-job-creation/

The Controversial PennEast Pipeline that would cut across farmlands and preserved open space doesn’t even have federal approval yet. What it does have is a battalion of powerful supporters, and a long line of detractors which includes the New Jersey Conservation Foundation. It hired the same company that analyzed the contested Keystone XL Pipeline to analyze PennEast’s claims of economic benefits. Tom Gilbert is with the New Jersey Conservation Foundation.

http://player.pbs.org/viralplayer/2365601769

PennEast argues the pipeline will lower heating costs for New Jersey residents. While the study didn’t include analysis on that aspect of the pipeline, he says there’s lot of other evidence to suggest that it will not make any difference. “New Jersey already enjoys very low gas prices. There’s a surplus of gas,” Gilbert said. “Another study found that the PennEast Pipeline would be 53 percent more gas than is needed in the region, so we really don’t need more gas. Gas prices are already low.”

PENNEAST PIPELINE JOB CREATION CLAIMS SIGNIFICANTLY OVERSTATED, STUDY FINDS

The summary of the study is available here:  TGG PennEast Report_Summary_Nov 04 2015
Rethink Energy NJ says renewable energy will create
more jobs than fossil fuels
TRENTON, NJ, (November 4, 2015) – A study commissioned by New Jersey
Conservation Foundation of the economic impact analysis contained in the
proposal to construct the PennEast gas pipeline in New Jersey and Pennsylvania
concludes that the number of jobs claimed to be created by the project is
significantly overstated.
The 71-page study conducted by The Goodman Group, Ltd. (TGG) concludes
the PennEast analysis has overstated the total jobs to be created by designing
and building the pipeline “by approximately two-thirds or more.” TGG is a
consulting firm specializing in energy and regulatory economics and economic
development that analyzed the Keystone XL pipeline.
The TGG report also noted that construction jobs created would be “very shortterm
in nature” and that “half or more” would go to workers residing outside New
Jersey and Pennsylvania.
“In comparison to employment impact studies for other comparable gas pipelines
in the Northeast US, the PennEast Analysis multiplier of 10.7 jobs created per $1
million of project cost is a real outlier,” said Ian Goodman, president and founder
of TGG. “The multipliers for other similar gas pipelines are only 8-36% of the
PennEast Analysis multiplier.”
Moreover, TGG concludes that ongoing economic benefits would be
”infinitesimally small” in the context of the New Jersey economy.
According to the PennEast data, 10 ongoing jobs in New Jersey and 88 ongoing
jobs in Pennsylvania would be created to operate and maintain the pipeline after
its construction. The Goodman Group study points out that “as low as they are,
the PennEast estimates of annual jobs from operations may still be overstated.”
Other pipeline studies, notably for comparable Northeast U.S. gas pipelines,
“estimate substantially lower job impacts from operations.”
“Even using the PennEast estimates, pipeline operations result in very small
expenditures and would have very little positive impact on the economy,
especially in New Jersey,” said Goodman. “Maintenance and operation of the
pipeline will account for 0.0002 percent of total jobs in the state.”
The PennEast data also contains numerous internal inconsistencies and
deviations from best practices for analyzing the economic impacts of gas
pipelines, according to the Goodman Group.
“The PennEast jobs report inflates the short-term construction jobs by three times
or more and is riddled with inconsistencies in its methodology and jobs claims.
Clearly the PennEast information can’t be trusted,” said Tom Gilbert, campaign
director – Energy, Climate and Natural Resources for New Jersey Conservation
Foundation.
“The erroneous jobs claims made by PennEast hardly justify the construction of
this massive pipeline that would damage more than 4,000 acres of preserved
open space and farmland, impact numerous high quality streams and wetlands,
and take private property from homeowners,” said Gilbert.
Speaking for the Rethink Energy NJ campaign, Gilbert said, “More jobs can be
created by developing renewable sources of energy, like wind and solar, than
further investment in fossil fuels like natural gas.” He cited a study by the Union
of Concerned Scientists that found generating 25% of our nation’s energy from
renewables by 2025 would create more than three times as many jobs as
producing an equivalent amount of electricity from fossil fuels.
The ReThink Energy NJ campaign aims to inform and empower New Jersey
citizens concerning the need for a swift transition to clean, efficient, and
renewable energy, with reduced reliance on fossils fuels and pipelines that
threaten preserved lands, water, environment and communities. Rethink Energy
NJ is led by New Jersey Conservation Foundation, Stony Brook-Millstone Water
Association and Pinelands Preservation Alliance.
The Goodman Group study, “Expert Report on the PennEast Pipeline Project
Economic Impact Analysis for New Jersey and Pennsylvania,” is available at
njconservation.org/docs/PennEastEconomicReport.pdf.
About the authors: The Goodman Group, Ltd. (TGG)
The Goodman Group, Ltd. is a consulting firm specializing in energy and
regulatory economics. Since 1989, TGG has consulted and conducted economic
research across abroad range of issues. Their North American-wide client base
includes energy sector companies, regulators, government, customer groups,
and environmental and indigenous groups. One of TGG’s key areas of expertise
is economic development analysis (including employment impacts) of energy
projects. In recent years, TGG has published several influential and widely
publicized studies on the economic costs and benefits of various crude oil
pipelines in North America. California-based Ian Goodman, the President and
founder of The Goodman Group Ltd., and Ottawa-based Brigid Rowan
have over 55 years of experience in the areas of energy and regulatory
economics.
Contact:
Tom Gilbert, tom@njconservation.org, 267-261-7325