Monday, June 11, 2018

The Dam Thing – Where States Stand on Major Projects (Politico’s Morning Energy)


(WASHINGTON, DC) -- A brawl is brewing between Maryland's Republican governor, Larry Hogan, and Exelon Corp. over one of the country's largest privately owned dams, Pro's Annie Snider reports — and it could determine how assertive states can be when regulating major infrastructure projects.

Hogan's administration is trying to force the utility to pay up to $7 billion to reduce pollution flowing through its Conowingo dam, which is located just upstream of the Chesapeake Bay, as a condition of renewing its operating license for another 50 years. Exelon says it may shut down the dam rather than pay to fix a problem it did not cause. But first, it's heading to court.

The Supreme Court has given states broad leeway to set environmental requirements for infrastructure through authority granted by the Clean Water Act. And Maryland says it is stepping in because the Conowingo facility would raise pollution levels in violation of state water quality standards. But Exelon retorts the state's approach exceeds the boundaries of the federal water law, setting up a key test that will be closely watched around the country.

The ensuing fight is a perfect example of what critics say is some states using the water law to block projects they oppose for other reasons. "If there's a state who just doesn't like something, an application that's been made, they can stall it for the year and then they hold the applicant over a barrel by saying, 'We'll either deny it or you withdraw it,'" Sen. Jim Inhofe said during an infrastructure hearing last month. Read more here.