OUR GOVERNOR:
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Rell,
Others Laud N.Y.'s Rejection Of
Broadwater Gas Plant
By DAVID FUNKHOUSER | Courant Staff Writer
April 11, 2008
Opponents cheered as New York Gov. David Paterson declared Thursday,
"The fact is, Broadwater is behind us."
But the high-stakes battle over Broadwater Energy's plan to put a
massive, floating, natural-gas plant in Long Island Sound isn't over
yet. The developers said New York's rejection of their plan Thursday
was just one step in the approval process, not the last one, and
opponents expect an appeal.
Still, at press conferences on both sides of the Sound, officials,
citizens and environmental groups opposed to the plant celebrated their
first major victory — New York's decision that the project was
inconsistent with its coastal management plan.
Although Connecticut had no official standing in the decision, many in
the state had been eagerly awaiting New York's decision.
"We did it! We
did it! We did it!" Gov. M. Jodi Rell exclaimed at a
press conference on Silver Sands Beach in Milford. "This is exactly the
news we hoped to hear today: that New York's Department of State has
recognized the peril that the Broadwater project represents."
New York's action leaves the next legal step up to Broadwater, and
opponents concede there could be a long battle ahead.
"This does not necessarily change the game plan," said John Hritcko,
senior vice president and regional project director for Broadwater
Energy, a consortium of Shell Oil and TransCanada Pipeline. "Today's
decision is part of a regulatory review process, not the end of one. We
— and thousands of others in this region — believe that this project is
the best alternative to provide the additional natural gas supply that
will be required."
Hritcko said the company has "a number of options going forward" and
would review the decision in detail before deciding on its next move.
Lorraine Cortes-Vazquez, New York's secretary of state, called the
rejection of Broadwater's application a "complex and difficult
decision," saying the project did not mesh with several aspects of the
state's coastal policies.
Her decision, backed up by Paterson, puts a serious roadblock in
Broadwater's path.
"We are disappointed and concerned with the [New York] decision,"
Hritcko said. "We specifically designed this project to be consistent
with the state's coastal management policies and offered a number of
additional commitments that would further enhance the state's coastal
resources."
"This fight is far from over," said Connecticut Attorney General
Richard Blumenthal, a longtime opponent of the project. Under federal
energy law, he said, the company has 30 days to appeal the decision to
the U.S. secretary of commerce, who can overrule state decisions.
"They have a right to go to the secretary … and say that national
energy priorities should override the coastal zone management
determination made here by the governor," Blumenthal said.
The company also could appeal through state agencies and courts, but
Blumenthal called that approach "exceedingly unlikely" because of the
time involved.
Even if Cortes-Vazquez's rejection of the project were to be
overturned, two other New York agencies would still have to approve
Broadwater.
The New York State Department of Environmental Conservation, which has
raised objections to the project, would have to issue a permit, and the
New York State Office of General Services would have to grant the
company an easement to use public land.
Broadwater, a 1,200 foot long liquefied natural gas processing plant,
would be permanently moored to a tower in the middle of the Sound,
about 10.5 miles off Branford.
Opponents have argued that the two states and the federal government
have invested tens of millions of dollars over the past 20 years to
improve the environment of the Sound.
They say that allowing an industrial use like Broadwater in the middle
of public waters would threaten that progress.
"Gov. Paterson's swift and immediate decision to reject this
ill-advised proposal should be applauded and celebrated with a ticker
tape parade," said U.S. Rep. Joe Courtney, D-2nd District. "For years,
Connecticut and New York residents have faced the threat of a
quarter-mile-long barge in the middle of the revitalized Long Island
Sound that would serve only the interests of multinational oil
conglomerates."
Cortes-Vazquez and Paterson both cited the need to find
alternative ways to meet the demand for energy.
"The thorough analysis in today's ruling makes clear the importance of
protecting the character of Long Island Sound as it points the way to
sensible alternatives for meeting New York's long-term energy needs,"
said Cortes-Vazquez, whose department is charged under federal law with
making sure projects meet the state's goals for both developing and
protecting the coast.
Paterson stressed the Sound's environmental value.
"One of my goals … is to protect Long Island Sound, by preserving it as
a valuable estuary, an economic engine for the region, and a key
component to making Long Island's quality of life one of the best in
the country," Paterson said. "Broadwater does not pass that test. Shame
on us if we can't develop a responsible energy policy without
sacrificing one of our greatest natural and economic resources."
Paterson outlined a series of steps for addressing energy needs,
including an update of the state's energy plan; a 10-year, $1 billion
efficiency initiative by the Long Island Power Authority to reduce
demand; doubling the New York Power Authority's budget for
conservation; and exploring other proposals to increase the supply of
natural gas.
He also said the Long Island Power Authority would be seeking proposals
for a major solar power project.
The Federal Energy Regulatory Commission voted unanimously last month
to approve Broadwater. In a 2,200-page environmental impact statement,
the agency concluded that the project would not have major adverse
impacts, but also imposed 80 conditions intended to minimize the effect
on the Sound.
The decision by Cortes-Vazquez declares that Broadwater violates six of
13 policies that are part of the state's coastal management plan,
including those to:
ΔFoster a pattern of development in the Long Island Sound coastal area
that enhances community character, preserves open space, makes
efficient use of infrastructure, makes beneficial use of a coastal
location and minimizes adverse effects of development.
ΔEnhance visual quality and protect scenic resources throughout Long
Island Sound.
ΔProtect and restore the quality and function of the Long Island Sound
ecosystem.
ΔProvide for public access to, and recreational use of, coastal waters,
public lands and public resources of the Long Island Sound coastal area.
•Protect Long Island Sound's water-dependent uses and promote siting of
new water-dependent uses in suitable locations.
•Promote sustainable use of living marine resources in Long Island
Sound.
She also suggested two alternative sites for the facility that would be
consistent with the coastal plan, both outside New York boundaries.
One would be 13 miles offshore south of Long Beach, N.Y., and a second
22 miles south of Fire Island Inlet.
Rell To Make $50 Million Available In Mortgage Aid; Refinancing Funds
Would Ease State's Subprime Crisis
By Lee Howard
Published on 11/9/2007
State housing advocates reacted
positively Thursday to the announcement that Gov. M. Jodi Rell will
make available $50 million in refinancing to help address the subprime
mortgage crisis in Connecticut.
“I'm grateful to Gov. Rell because
she's taking the initiative and taking a firm stand on this issue,”
said Zenobia Penn, housing education coordinator at the Opportunities
Industrialization Center in New London.
“We are very happy Gov. Rell is
taking a proactive stand to address the problem of the subprime
market,” agreed Erin Kemple, executive director of the Connecticut Fair
Housing Center in Hartford. “We're facing a crisis here.”
An estimated 71,000 subprime
mortgages currently are in effect in Connecticut. Of these, 21,000 are
scheduled to reset at higher rates in the next two years, creating a
high probability of defaults, according to the preliminary report of
the state Sub-Prime Mortgage Task Force, convened by Rell in April.
“Many homeowners in Connecticut are
struggling with mortgage payments that suddenly and dramatically
increased as a result of sharply higher interest rates,” Rell said in a
statement. “This issue is about protecting the most important
investment many of these families have ever made.”
The CT FAMLIES program that Rell
unveiled Thursday will assist approximately 300 to 400 low- to
moderate-income borrowers who took out subprime loans for a first home.
These loans will be refinanced at a fixed rate only a quarter of a
percent higher than the Connecticut Housing Finance Authority's regular
rate, currently at 6 percent.
As part of the program, those
approved for CHFA loans will be required to go through housing
counseling, which will be paid for out of the $50 million Rell will
take from other housing programs. Participation will be first-come,
first-served.
“The CT FAMLIES refinancing program
will help get these borrowers back into a stable mortgage with rates
and terms they can afford,” Rell said. “This program will help many
families keep their homes.”
Chris Cooper, a Rell spokesman,
pointed out that the CHFA funding has no income limits in urban areas
such as New London, Norwich and Groton. Income limits otherwise vary by
town, with the top limit for a family of three, for instance, averaging
$91,150 in New London County. He added that those eligible for the
program have to have been making their loan payments on time before
their adjustable-rate subprime mortgages reset to a higher payment.
Barbara Crouch, a housing counselor
with Catholic Charities in Norwich, said she already has been calling
up subprime lenders to let them know about the program. She expects the
governor's announcement will allow people to have more leverage to
renegotiate their subprime mortgages.
“It will hopefully have a ripple
effect,” Cooper agreed.
But housing advocates such as Jeff
Freiser, executive director of the Connecticut Housing Coalition, said
they were concerned that $50 million might not go far enough to address
the problem.
Kemple also wondered if the program
takes into account the huge penalties, up to 5 percent or more, that
many subprime loans impose on those who pay off their mortgages early.
“Although we are really excited, we
are concerned that added resources may need to be brought to the
table,” Kemple said.
Kemple also was concerned that the
program helps only first-time homebuyers. She said many of her clients
have already refinanced their home, perhaps to send a child to college
or pay a medical bill, and therefore would not be eligible for the new
program.
“Fifty million dollars is a great
step in the right direction,” Kemple said, “but there still may be a
ways to go.”
CHFA, which is administering the new
program, will start taking refinancing applications Dec. 10. A call
center is available to help borrowers determine whether they qualify
for the program at (860) 571-3500.