An amendment to a major government appropriations bill (H.R. 2740) could mean trouble for a $1.9 billion Energy Department loan guarantee for the proposed natural gas liquids storage facility planned for Appalachia, Kallanish Energy reports.
Amendment 105, introduced by Reps. Ilhan Omar (Democrat-Minnesota) and Pramila Jayapal (Democrat-Washington), seeks to clarify the Doe loan program in question is intended only for “clean energy projects that avoid, reduce, or sequester air pollutants or human-caused emissions of greenhouse gases,” according to amendment backers.
Last month, a coalition of 143 environmental/ community, health, and public interest groups, wrote a letter to House Appropriations Committee Chairperson Nita Lowey (Democrat-New York State) questioning the legality of the loan guarantee proposal, stating a massive fossil fuel project would actually undermine the intended purpose of the Title XVII loan guarantees.
The massive proposed gas storage hub and its associated infrastructure would pose serious public health and environmental risks to the region, anti-project protestors state.
“Supporting the construction of more fossil fuel-related infrastructure to support plastics manufacturing would be an irresponsible use of taxpayer dollars,” according to opponents.
Proponents for the Appalachian Storage Hub naturally have a different position on the roughly $3.4 billion project.
“Proposed projects mandatorily must meet the necessary requirements of the standard in order to receive an invitation from the Department of Energy’s Loan Program Office to submit a Part II Application,” Steve Hedrick, head of Appalachia Development Group LLC, the entity pushing the Appalachia Storage and Trading Hub project, told Kallanish Energy.
ADG’s Part I application for the federal monies was approved and, in early 2018, the group was encouraged to submit a Part II application for funding, which it did.
Adg has hired engineering giant Parsons Corp. as its engineering, procurement and construction (Epc) partner for the buildout of the Appalachia hub.
The Adg-backed hub is the largest of three announced to be built in the Pennsylvania/Ohio/West Virginia region, and the only one asking for federal funds.
Liquids storage is seen as critical as the Tri-State area attempts to entice ethane crackers to their environs. Shell’s cracker currently is under construction roughly 30 miles northwest of Pittsburgh, in Beaver County, Pennsylvania.
The amendment will be debated on the House floor in the coming days.
This post appeared first on Kallanish Energy News.