LNG project fuels more debate, solutions from panel

It has drawn criticism and critique from a nationally renowned terrorism expert, favor among business leaders and organizations concerned about the state’s rising energy costs, and prompted the governor to tap a Washington, D.C., law firm for counsel.

It’s the proposed expansion of a liquefied natural gas (LNG) facility at Field’s Point along Providence’s waterfront, and it became the focus of a panel discussion on energy and the environment, hosted by Providence Business News at the Radisson Airport Hotel in Warwick on June 9. The discussion was part of PBN’s yearlong “Economic Agenda” initiative, a series of panel discussions aimed at finding solutions to hurdles facing the state’s business sector in terms of economic development.

Talk centered on the merits of expanding the Field’s Point terminal to facilitate larger LNG shipments via marine transport (the existing facility was built some 31 years ago and can only accept delivery by truck). Discussion also touched on how alternative energy sources, such as wind and solar power, should fit into Rhode Island’s energy portfolio.

Panelists included John Farley, a consultant and executive director of the Energy Council of Rhode Island; Paul J. Roberti, assistant R.I. attorney general and chief of the office’s Public Utilities Regulatory Unit; Michael Ryan, executive vice president of Narragansett Electric Co.; and Curt Spalding, executive director of Save the Bay.

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None of the panelists denied that LNG is a needed source of energy in the Ocean State, powering electricity generators and local industry. However, experts’ opinions differed on the necessity of an expanded LNG facility at Field’s Point.

Roberti argued that enhancing the LNG facility doesn’t necessarily translate into benefits for Rhode Island, and the state shouldn’t be burdened with an LNG facility in Providence to ensure that the entire region has enough natural gas. States are not collaborating, he added, to determine the region’s actual needs.

Farley, conversely, said the LNG proposal is one solution to boost supplies and limit increases in energy costs. He noted that as electricity prices increase in the state, the number of manufacturing jobs decreases. In the last 25 years, he said, the state has lost a daily average of 10 manufacturing jobs – totaling 80,000.

“I’m not here saying (the loss of jobs) is because of energy costs,” Farley said, “but it does have a gradual impact.”

Spalding took issue with the notion that job loss in the state is tied to jumps in energy costs, saying the departure of manufacturing jobs is more a nationwide trend.

“I reject the argument … that concern for the environment leads to loss of jobs,” said Save the Bay’s executive director.

Concern for the environment and protecting natural resources has been a “cornerstone” to the state’s economy, Spalding said, noting that the Providence waterfront, where the LNG tank stands, presents a great economic opportunity. But expanding the LNG terminal would jeopardize the waterfront’s potential for ‘mixed-use’ development and job creation, he said.

Noting that there are at least two sides to the LNG debate, Ryan said “these sides will never meet unless they realize that somewhere in the middle is a solution.” He suggested a solution that protects natural resources while making LNG delivery more efficient.

Ryan spoke about Narragansett Electric’s struggle to increase its delivery capacity. When a recent proposal to erect transmission lines came up in North Kingstown, the attorney general’s office secured $18 million to put the lines underground to ease objections to the project, he said, using it as an example of how government and industry should collaborate.

Where does renewable energy fit into all this?

Panelists questioned the public’s willingness to make sacrifices to increase renewable energy availability. Ryan noted that proposals such as Cape Wind, a windmill proposal in Massachusetts, have drawn criticism from the very same people calling for more renewable energy usage.

Roberti stressed the importance of energy conservation, but questioned whether or not “the cultural pendulum” had swung in that direction.

Calling for a “crisp energy plan for Rhode Island,” Farley said the state still needs LNG to spur economic growth. Coal gasification and nuclear power should be considered as well.

Panelists suggested using the following measures to address energy needs in Rhode Island:
Form a regional body to coordinate the placement of energy facilities and to assess the needs of each state.

Roberti endorsed holding evidentiary hearings to allow witness testimony and findings of fact determine the fate of proposals such as KeySpan’s plan to expand its LNG terminal.

Business and individuals should use more renewable energy, such as solar panels, to supplement and decrease dependence on fossil-fuel consumption.

The next panel discussion in the “Economic Agenda” series is scheduled for Thursday, Sept. 22: Experts will focus on insurance, including the rising cost of health benefits – and what measures could be taken to slow that disturbing trend. Other topics to be discussed are workers’ compensation and the impact of state and municipal contracts, with regard to insurance co-pays.

Details regarding the location and time of the discussion will follow in future issues of the paper.

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