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One Blue Hill Plaza, 7th Floor Post Office Box 1565 Pearl River, NY 10965 845.620.1300

One Blue Hill Plaza, 7th Floor Post Office Box 1565 Pearl River, NY 10965 845.620.1300 Voice | 845.620.1320 Fax

September 5, 2017

Ms. Kimberly D. Bose, Secretary Federal Energy Regulatory Commission 888 First Street, N.E. Washington, D.C. 20426

Via Electronic Filing


Millennium Pipeline Company, L.L.C. Docket No. CP16-486-000, Eastern System Upgrade Project Request for Prompt Issuance of Commission Order

Dear Ms. Bose:

Millennium Pipeline Company, L.L.C. (“Millennium”) respectfully requests that the Federal Energy Regulatory Commission (“Commission”) promptly issue an order granting the certificate of public convenience and necessity requested in the captioned docket for the Eastern System Upgrade project (“ESU Project” or “Project”). In its Environmental Assessment (“EA”) issued more than five months ago, Commission Staff concluded that the Project will have no significant impact on the environment. 1 Millennium has received all required permits, addressed all data requests, and needs only the Commission’s authorization to construct the Project. Millennium requests that the Commission promptly approve the ESU Project to allow Millennium to meet its shippers’ requested in-service date.

The Eastern System Upgrade Project

The ESU Project will provide approximately 223,000 dekatherms per day of firm transportation service. The Project is designed to deliver gas supplies to a downstream pipeline that serves gas-constrained local utilities in the region, including New England. 2 Over 90 percent of the Project capacity is subscribed under long-term contracts.

The Project is designed to minimize environmental impacts, and Millennium has worked closely with Commission Staff and stakeholders to mitigate any impacts that do exist. The

1 Eastern System Upgrade Project, Environmental Assessment at 179 (Mar. 31, 2017). 2 See Gordon van Welie, ISO- New England, State of the Grid: 2017 at 7, 10 (Jan. 30, 2017) (describing the challenge limited infrastructure and pipeline constraints pose to regional fuel security in New England, particularly during periods of peak demand), assets/documents/2017/01/20170130_stateofgrid2017_presentation_pr.pdf; FERC State of the Markets Report 2016 at 3 (Apr. 2017) (showing that natural gas prices in New England are the highest in the country)

in the country)

Project consists of construction and operation of only 7.8 miles of pipeline facilities; construction of one new compressor station; modification of an existing compressor station; and other minor modifications to existing facilities. To minimize the Project’s impacts to affected landowners, Millennium has collocated approximately 88 percent of the new pipeline facilities with Millennium’s existing right-of-way. In the EA, Commission staff determined that the Project will have no significant impact on the environment.

Timing and Need for Prompt Commission Action

Millennium commenced pre-filing activities for the ESU Project in February 2016, 3 and filed its certificate application (“Application”) in July 2016. 4 Millennium explained in its Application that it seeks to commence construction in the Fall of 2017 in order to meet its shippers’ requests for September 2018 in-service dates. Accordingly, Millennium requested that the Commission issue a certificate authorizing the ESU Project no later than July 31, 2017.

Without a certificate order, Millennium faces a compressed time frame to complete the Project. The consequences of a compressed construction schedule include the risk of missing federally-recommended tree clearing windows, as well as longer working days adding to potential safety and noise concerns for employees, contractors and landowners. Millennium can mitigate these risks if it promptly receives a certificate order.

The Commission Should Disregard the Sierra Club and Delaware Riverkeeper Network Late-Filed Comments.

The Commission should disregard the late-filed comments of the Sierra Club and Delaware Riverkeeper Network. 5 The Sierra Club has not intervened or heretofore participated in this proceeding. Contrary to Sierra Club’s assertions, the EA for the ESU Project fully satisfies the U.S. Court of Appeals for the D.C. Circuit’s recent opinion addressing the Sabal Trail project, 6 in which the court required that the Commission estimate the quantity and the environmental impacts of greenhouse gas emissions caused directly and indirectly by new pipeline projects. The Commission recently addressed the D.C. Circuit’s opinion in a certificate issued for the NEXUS Gas Transmission, LLC project (“NEXUS”), 7 and found that NEXUS’s circumstances were distinct from Sabal Trail’s because the NEXUS environmental review quantified the greenhouse gas emissions associated with the project. Additionally, the Commission distinguished the NEXUS project from the Sable Trail project, finding that, while the combustion of gas from Sabal Trail was reasonably foreseeable because that project was designed to deliver gas to specific power plants in Florida, NEXUS would deliver gas to the interstate pipeline grid, such that its end use was not predictable. 8

3 See Approval of Pre-filing Request, Docket No. PF16-3-000 (Feb. 5, 2016).

4 Abbreviated Application for a Certificate of Public Convenience and Necessity and Related Authorizations (July 29, 2016).

5 Comment of Sierra Club (Aug. 30, 2017); Comment of Delaware Riverkeeper Network (Sept. 1, 2017).

6 Sierra Club v. FERC, No. 16-1329, 2017 WL 3597014 (D.C. Cir. Aug. 22, 2017).

7 NEXUS Gas Transmission, LLC, 160 FERC ¶ 61,022, P 173 n.191 (Aug. 25, 2017) (NEXUS).

8 Id.


Gas Transmission, LLC , 160 FERC ¶ 61,022, P 173 n.191 (Aug. 25, 2017) ( NEXUS

Like NEXUS’s environmental review, the EA for the ESU Project estimates the direct and indirect greenhouse gas emissions associated with the Project, including those caused by downstream gas combustion. 9 The ESU Project’s EA further addresses mitigation measures to minimize such emissions, and the greenhouse gas emissions’ potential impacts related to climate change. 10 Additionally, the gas transported on the ESU Project is not intended for specific power plants, but rather, like NEXUS, will make deliveries to different types of downstream customers such that its end use is not predictable. Consistent with its determination in NEXUS, the Commission should conclude that the ESU Project’s EA meets the requirements the court set forth in the D.C. Circuit’s opinion addressing Sabal Trail.

Regarding the Delaware Riverkeeper Network’s comments, the ESU Project and the Valley Lateral Project are separate projects with distinct purposes and different customers. 11 Neither project depends on the construction of the other project and Millennium would proceed with either project in the absence of the other. In any event, the Commission’s EA for the ESU Project fully evaluates the cumulative impacts of the construction and operation of the ESU Project and the Valley Lateral Project. Therefore, the Commission should disregard the Delaware Riverkeeper Network’s untimely and inapplicable comments.

The ESU Project Is Ready for Commission Approval

Millennium appreciates Commission Staff’s diligent work in reviewing the Application, completing environmental review, and developing the extensive record to support Commission action. The record in the proceeding is now complete and ready for a final Commission decision.

With the exception of the certificate authorization, Millennium has obtained all permits and authorizations required under federal law from federal and state agencies needed to construct the ESU Project. This includes all permits required from the New York Department of Environmental Conservation, including a water quality certification required under Section 401 of the Clean Water Act and all permits required under the Clean Air Act. Millennium respectfully requests that the Commission promptly issue a certificate order approving the ESU Project.

9 EA at 165-66 (estimating that combustion of the maximum amount of gas that could be transported on the Project would produce a maximum of 4.3 million metric tons of CO 2 per year). As with NEXUS, the Commission’s estimate of downstream GHG emissions is a “conservative estimate” and “represents an upper bound for the amount of end-use combustion.” NEXUS, 160 FERC ¶ 61,022, at P 173. The Commission explained: “This is because some of the gas may displace other fuels, which could actually lower total CO2e emissions. It may also displace gas that otherwise would be transported via different means, resulting in no change in CO2e emissions.” Id.

10 EA at 164-166 (discussing the ESU Project’s impacts on climate change and mitigation measures).

11 See Millennium Pipeline Co., L.L.C., 157 FERC ¶ 61,096, at P 27 (2016) (“The Valley Lateral Project will enable Millennium to provide 127,200 Dth per day of firm lateral-only natural gas transportation service to the project shipper, CPV, for the Valley Energy Center.”); Eastern System Upgrade Project, Environmental Assessment at 2 (“the purpose of the [ESU] Project is to provide 223,000 Dth/d of firm natural gas transportation capacity from Millennium’s Corning Compressor Station to an existing interconnect with Algonquin in Ramapo, New York.”)


Compressor Station to an existing interconnect with Algonquin in Ramapo, New York.”) 3

Please contact me if there are any issues or information that I can provide to assist the Commission. You may reach me at 845-620-1300.

cc: Terry Turpin Jacqueline S. Holmes Rich McGuire Alisa Lykens Eric Howard

Respectfully submitted,

/s/ Georgia B. Carter

Georgia B. Carter Vice President and General Counsel


Respectfully submitted, /s/ Georgia B. Carter Georgia B. Carter Vice President and General Counsel 4


I hereby certify that I have this day served the foregoing document upon each

person designated on the official service list compiled by the Federal Energy Regulatory

Commission in this proceeding.

Dated at Washington, DC this 5th day of September 2017.

/s/ Barbara Deathe

Barbara Deathe, Paralegal Van Ness Feldman, LLP 1050 Thomas Jefferson Street, NW Washington, DC 20007