Editorial: Governor answers pipeline fund questions

Friday, Feb. 16, 2018 -- The mitigation fund will provide additional resources to offset the impact of the pipeline as well as provide investments in renewable energy and economic development in the counties along the pipeline. ... The administration wanted to make sure the natural gas that the Atlantic Coast Pipeline touted in its advertising could be extended to create jobs.

Posted 10:00 a.m. Feb 16, 2018 — Updated 2:34 p.m. Feb 16, 2018

CBC Editorial: Friday, Feb. 16, 2018; Editorial # 8270

The following is the opinion of Capitol Broadcasting Company

EDITOR'S NOTE: Below are responses to questions put to Gov. Roy Cooper’s office concerning the $57.8-million mitigation fund outlined in a memorandum of understanding with the developers of the Atlantic Coast natural gas Pipeline that will run through much of eastern North Carolina. We present this in to elevate the debate on this important matter.

Q: How did the Memorandum of Understanding come about? When was there the first discussion of it? Whose idea was it?

THE GOVERNOR‘S OFFICE: Discussion about the fund began in 2017 when eastern North Carolina economic developers and others expressed concerns about whether the pipeline would bring the economic growth it promised. The governor, his administration and many others were also concerned about whether the pipeline would deliver on its promise of economic development to eastern North Carolina.

Those promises of jobs and industry, which had been touted in television advertising and other media, had earned support for the project from local governments, economic developers and many even in the legislature’s Republican caucus. Similarly, the administration was concerned about the environmental impacts of the pipeline on Eastern North Carolina.

The governor’s office, including Legal Counsel William McKinney and Senior Advisor Ken Eudy, worked with the Atlantic Coast Pipeline partners to establish the fund to lessen the impact and create jobs in counties affected by the project.

Q. Was issuance of the N.C. Department of Environmental Quality 401 permit dependent upon the Memorandum of Understanding?

THE GOVERNOR‘S OFFICE: No. The mitigation fund was established independently of the Department of Environmental Quality’s permitting process, which is still underway.

The pipeline permitting process was extraordinarily thorough. It was important to DEQ to make its permit decisions based solely on whether the Atlantic Coast Pipeline met regulatory requirements. There is substantial mitigation required within the 401 water permit.

The state DEQ continues to conduct rigorous analysis. At the end of its water permit review, DEQ had exhausted its inquiries and addressed mitigation concerns allowed by law and thus issued the water permit. You can be sure that DEQ will continue its role as a regulator to make sure that the pipeline construction and operation complies with the permit’s mitigation requirements.

The DEQ will also hold the pipeline accountable for complying with the permit requirements and environmental protection rules.

Q. Will any of the $57.8 million come from funds from utility rate payers?

THE GOVERNOR’S OFFICE: That is a decision for the utilities to develop, and in North Carolina ultimately likely will be determined by the state Utilities Commission.

Q. What procedures have been set up, or what plans were there to set up procedures, to distribute of the funds in the Memorandum of Understanding?

THE GOVERNOR’S OFFICE: At the time the legislature chose to intervene, the governor’s office was working to finalize the process that would be utilized to effectuate the Memorandum of Understanding. Our expectation and plans have been that decisions about the distribution of the fund were to be made after a review of applications from qualified government entities and non-profits.

The Rural Infrastructure Authority and the Clean Water Management Trust Fund are examples of two grant-makers operating under these guidelines that could fulfill the administrative process and accomplish these goals.

The executive order setting up the fund would direct that it operate subject to the state’s public records and open meetings laws, the state ethics act and additional provisions preventing conflict of interest or duplication of efforts.

The mitigation fund will provide additional resources to help offset the impact of the pipeline as well as to provide investments in renewable energy and economic development in the counties along the pipeline. Extending gas lines is an expensive process and the fund could help offset some of it.

The administration wanted to help make sure that the natural gas that the ACP touted in its advertising could be extended to create jobs in the eight pipeline counties.

NOTE: Capitol Broadcasting Company is developer of Rocky Mount Mills, a multi-use residential, business and commercial site in Nash County, one of the pipeline counties.

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