(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.
