Two Major Pacific Northwest Fossil Fuel Projects Dealt Massive Setbacks In One Day

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Two enormous fossil fuel projects in the Pacific Northwest suffered devastating setbacks on Tuesday, severely dimming their prospects of ever movingย forward.

On President Donald Trumpโ€™s last full day in office, the Federal Energy Regulatory Commission (FERC) met with a packed agenda, making key decisions on multiple pipeline projects and other matters affecting electricityย markets.

One of the most significant decisions FERC issued was related to the Jordan Cove LNG export terminal, and the associated Pacific Connector Gas pipeline. The proposed project would export natural gas to Asia from a terminal on Oregonโ€™sย coast.

Roughly an hour after FERCโ€™s decision, a separate decision from the state of Washington dealt a major setback to another giant fossil fuel project in the Pacific Northwest. Washingtonโ€™s Department of Ecology shot down a critical environmental permit for what would be one of the largest gas-to-methanol projects in theย world.

The fossil fuel resistanceย movementsย in the Pacific Northwest are often referred to as the Thin Green Line โ€” the wall of opposition along the Pacific Coast, blocking exports of North Americaโ€™s vast fossil fuel reserves. Taken together, the dual blows to Jordan Cove LNG and Kalama methanol on January 19 are decisive victories for these movements and another testament to itsย strength.

Jordan Cove LNGย Terminal

FERC upheld the Oregon Department of Environmental Qualityโ€™s (DEQ) denial of a key water permit for the proposed Jordan Cove LNG export terminal. Originally, a Clean Water Act permit was denied in May 2019 at the state level, so Jordan Cove turned to FERC in the hopes that the federal agency would waive the stateโ€™s authority; the company argued that Oregon waited too long to make itsย decision.

The gambit didnโ€™t work. The five-member commission voted unanimously on Tuesday to deny Jordan Coveโ€™s request, arguing that the company never completed its request for a water permit to Oregonโ€™s DEQ, and thus, the state couldnโ€™t have waived its authority to decide on theย permit.

The end result is that Jordan Cove LNGย and its parent company, Pembina, remainย stuck, with the project now running out of options to gainย approval. Having suffered multiple denials at the state level, and still lacking other federal permits, there is no clear way forward. A spokesperson for Jordan Cove was not immediately available forย comment.

The coalition of landowners, environmental groups, and Indigenous tribes that have been opposing the project for more than 15 years, celebrated theย news.ย 

โ€œThe FERC decision is very encouraging. It is certainly our hope that Pembina will give up on this devastating project once and for all,โ€ said Chairman Don Gentry of the Klamath, Modoc, and Yahooskinย Tribes.

Jordan Cove LNG would instantly become Oregonโ€™s largest source of greenhouse gas emissions ifย constructed.

Opponents, however, remain on guard. Pembina still has the right to use eminent domain to condemn land for the project, based on an earlier approval from FERC, even though it lacks multiple keyย permits.

But FERCโ€™s latest decision means the projectโ€™s odds of going forward look increasingly dim. โ€œI think it’s really important, especially in 2021, to celebrate every win along the process. This is a big step in the right direction. So, we are definitely celebrating that,โ€ Allie Rosenbluth, campaign director at Rogue Climate a southern-Oregon based organization opposing the project, toldย DeSmog.

โ€œWe know that this project is often referred to as the zombie project, for good reason,โ€ she said, referring to the fact that the project seemed to die more than once, only to come back to life. โ€œWe are not going to stop fighting Jordan Cove LNG until Pembina cancels it forย good.โ€

Kalama Petrochemicalย Plant

Meanwhile, the methanol project proposed for Kalama, Washington, would process fracked gas piped in from British Columbia, turning the gas to methanol (a liquid fuel) and then export the product to Asia where it would be used to manufacture plastics or be burned as fuel. If built, the facility would instantly become one of the stateโ€™s largest greenhouse gas emitters, a red flag in a state that has committed to slashing its emissions by 45 percent byย 2030.

The projectโ€™s sponsor, Northwest Innovation Works (NWIW), however, has spent years arguing that the methanol project would be a net win for the climate because it would displace dirtier projects in China. To help make its case, the company lined up powerful political support within the state, as DeSmog reported recently.


Keep Kalama Beautiful sign. Credit: Nickย Cunningham

NWIWโ€™s assertion seemed to have a receptive audience at the Department of Ecology, which in December issued its final second supplemental environmental impact statement that illustrated a scenario in which constructing the project would lead to a smaller climate impact compared to not buildingย it.

In the end, the Department of Ecology denied the permit. The agencyโ€™s director, Laura Watson, wrote in an explanation that building the methanol plant would result in an enormous increase in emissions, a known outcome, while the benefits were speculative โ€”ย an argument that critics have noted all along: โ€œDo we approve a facility we know will be bad for Washingtonโ€™s environment and make it difficult or impossible for our state to meet its statutory emissions limits based on the potential for some alternate scenario to be evenย worse?โ€

In a statement, NWIW said it was โ€œdisappointedโ€ and that it was considering its options for an immediate appeal. โ€œThe science Ecology developed shows that this project is the cleanest, most climate-friendly way to make products we use every day,โ€ said Vee Godley, Chief Development Officer for NWIW.

But according to Miles Johnson, an attorney with Columbia Riverkeeper, an organization that has opposed the project for years, the Department of Ecology โ€œhas excellent legal groundsโ€ for denying theย permit.

โ€œPeople across that state have consistently said they do not support a clean energy future that simply invests in dirty fossil fuel infrastructure,โ€ said Alyssa Macy, CEO of Washington Environmental Council and Washington Conservation Voters. โ€œ[This] science-based decision helps ensure Washingtonโ€™s promise of a livable planet for generations toย come.โ€

Main image: Banner protesting Jordan Cove LNG Export Project. Credit: Francis Eatherington CC BYNCย 2.0

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Nick Cunningham is an independent journalist covering the oil and gas industry, climate change and international politics. He has been featured in Oilprice.com, The Fuse, YaleE360 and NACLA.

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