Clean Air Council says lawsuit not “root” cause of REC project delay
PHILADELPHIA, PA – The head of the Clean Air Council says don’t blame that environmental organization for continued delays in bringing the proposed Renovo Energy Center project to fruition.
Joseph Minott, executive director for the Philadelphia-based council, offered a recent opinion piece to The Record in response to a story earlier in March which indicated a CAC legal action is leading to further delays in the proposed natural gas-to-electricity plant.
Minott said the council lawsuit is not the “root source” of delay for the billion dollar proposal first advanced in 2014. In a recent Record story, Mike Flanagan, head of the Clinton County Economic Partnership, said the power plant on the north side of Renovo is still on line to be constructed, but said the process to “get ready for an environmental hearing board session due to the actions of environmental groups such as the Clean Air Council” could delay the project for another year before a hearing would be held.
Minott responded, writing that developers “appear to be just passing the buck in an attempt to distract from the shortcomings of this outdated…proposal.” He said the project air quality permit is still valid while the council’s legal challenge moves forward.
He said the lawsuit goal is to ensure the state and project developers comply with clean air laws. He renewed claims the plant would be a “major source of air pollution for a number of health-harming pollutants.” Minott charged the state Department of Environmental Protection never granted a public hearing on the project permit, despite requests to do so. He also charged that Renovo Borough Council gave the project its blessing “without adequate community engagement.”
The complete op-ed submission from Clean Air Council Executive Director Joseph Minott:
A recent article, “Renovo Energy Center Project Deals with Delay,” reported that construction on the proposed methane gas power plant in Renovo is being delayed by a year or more. According to the article, the head of the Clinton County Economic Partnership is claiming that a lawsuit brought by Clean Air Council and partners is the cause of this delay. The developers appear to be just passing the buck in an attempt to distract from the shortcomings of this outdated power plant proposal. The air quality permit is still 100% valid while the lawsuit challenging it moves forward. The Council and its partners could have asked the judge to put the permit on hold during the appeal, but they didn’t. The goal of this lawsuit is to ensure the Department of Environmental Protection (DEP) and Renovo Energy Center comply with our clean air laws. Clean Air Council believes the permit in its current form is unlawful. But none of that actually prevents the developer from breaking ground on the project.
If this power plant were built, it would be a major source of air pollution for a number of health-harming pollutants, including nitrogen oxides, particulate matter, and volatile organic compounds. It would also be one of the largest industrial polluters of greenhouse gases in Pennsylvania at a time when the world’s top scientists tell us we need to reduce this pollution.
It’s clear that there has been a long-term pattern of delay with this project even before the air permit appeal. Bechtel, the Virginia-based multinational corporation proposing to build the power plant, first proposed to build the facility back in 2014. Yet, according to a report by the Institute for Energy Economics and Financial Analysis (IEEFA), the project was originally supposed to be online in 2017, then was delayed to 2018, and even before this recent one-year delay, was listed as having a start-up date of July 2024.
So if these delays were happening even before the lawsuit, what has been causing them? Renovo Energy Center stated as recently as May 2021 that it still needed financing for the project. According to a section of IEEFA’s report regarding the Renovo plant, “The lack of financing is indicative of the rising risks for both developers and potential investors with the region’s flat demand growth, overcapacity and growing renewable energy penetration.” The report states that volatile gas prices and changes in the electricity market in recent years pose greater financial risks to developers and investors. Financing a gas plant is going to become increasingly difficult. In addition, the IEEFA report points out that New York, where about half of the electricity from this project was slated to go, is denying permits for power plant projects because they do not align with one of its environmental laws. These decisions cast serious doubt on whether New York would still agree to take electricity from a dirty fossil fuel power plant like Bechtel’s plans for the Renovo Energy Center. Is it possible that some or all of these issues are delaying the project?
Whenever there is a big decision that affects any community, it’s important for decision makers to listen to and respect the input of its residents. Unfortunately, the opposite appears to have happened here. The DEP never granted a public hearing on the air permit, despite many residents requesting it. Renovo Borough entered into a community benefit agreement about the plant without adequate community engagement. Despite this unwillingness to support public engagement, a local group called Renovo Residents for a Healthy Environment has been vocal in saying that they need healthy air and that they are opposed to a dirty power plant. The group has distributed yard signs, collected petition signatures, and talked with decision makers. They even have their own informational website.
So, let’s encourage transparency and truth with the public and the community on the status of the Renovo power plant. A lawsuit by environmental groups attempting to address an unlawful permit isn’t the root source of this project’s delay. Demand for new electricity in the region has basically flatlined while the amount of electricity produced by clean renewable energy is increasing, and the project is simply having difficulty attracting investors. Whatever the source of the delays, concerned residents and other stakeholders deserve to know the truth about the status of the project and its overall viability.
Joseph Minott
Clean Air Council Executive Director and Chief Counsel
