$6B Hudson River power project to move forward after tests show no contamination

A $6 billion project to transport renewable energy from Canada to New York City through high voltage cables dug into the floor of the Hudson River is moving forward after testing showed the installment would not contaminate municipal water supplies.

The Champlain Hudson Power Express project would run hydro power down from Canada along 339 miles of transmission cables, both underwater and underground. The cables would enter the Hudson River just north of the Dutchess County border and continue south into New York City, with the exception of a small stretch of line above ground in Rockland County.

The Hudson River Drinking Water Intermunicipal Council, otherwise known as Hudson 7, was concerned with how installing the cable into the riverbed, which is believed to hold contaminants, may impact drinking water. The issue was over whether contaminants would be kicked up by the plow mechanism used to bury the cable into the riverbed and enter the municipal water intakes.

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“We are grateful to the Hudson 7 for their collaboration and commitment to ensuring that the health of public drinking water is maintained. With their collaboration and extensive input, we have demonstrated that we can safely install this clean energy infrastructure in a way that does not impact local water supplies,” said Transmission Developers Inc. Senior Vice President Marine Will Davie. “We will continue to work closely with public water system operators and the Hudson 7 as we move forward.”

The group has asked TDI to meet with each of the municipalities to discuss a plan which includes monitoring the water at the intakes, providing an emergency supply of water and deciding on when to shut down the intakes as the jet plow passes by, which may be in August of 2024, said Paul Malmrose, an engineering technical advisor for Hudson 7.

The developer, TDI, tested how the jet plow would impact a water intake last year by replicating a water intake with the installation process in the Chelsea marina in September. While Hudson 7 set up the requirements for the testing and members were present for the testing, the group did not provide oversight. Disturbance to sediment was found to be "brief and temporary," according to TDI spokesperson Chris Singleton.

However, not all municipalities are in agreement. Town of Poughkeepsie Supervisor Jon Jay Baisley said he plans to meet with TDI again on Tuesday because not all their concerns have been addressed.

Esopus is working on getting a second opinion on the results of the test and may be asking for additional actions near its water intake location, said Malmrose. Esopus did not respond to the Journal's request for an interview.

"These communities were all legitimately concerned. I'm not going to speak for each individual municipality because each one may have different issues related to how they view the process as going," said Gary Bassett, who is the chair of the Hudson 7 and the mayor of the village of Rhinebeck.

According to Bassett, the testing found that contaminants did not rise "above the standards for drinking water."

Bassett said while there wasn't "a smoking gun" in this situation, New York State should keep from tampering with the riverbed again given how municipalities like his depend on the water intakes for their residents.

"We felt that we've done due diligence to make sure that our water will not be impacted," Bassett said in regard to the village, which has already met with TDI. The village asked TDI for a four hour window where it will shut down its water intake as the jet plow digs through.

Malmrose has not yet seen a complete map of where the cable will run, but has been notified about how far the cable will be from some of the intakes. He was told this week the cable would be 1300 feet from Rhinebeck's intake, 220 feet from Poughkeepsie's intake and about 300 feet from the Esopus intake.

The project has all its permits and is expected to be operational in 2026. Construction started in November, according to its website.

"(TDI) got all their permits before any of the water utilities were notified," Malmrose said. Hudson 7 has been in discussions with TDI since 2020.

The developer had previously sought tax exemptions from both Ulster and Dutchess County, but withdrew both application amid outcry. It had asked the Dutchess County Industrial Development Agency for $120 million in exemptions over 30 years.

TDI was unable to answer at this time whether it will still be pursuing tax exemptions in Dutchess County. TDI is owned by Blackstone, one of the world's largest alternative asset management firms.

"Our position has not changed on incentives," said Ron Hicks, assistant county executive of Dutchess County. He had previously said the project does not directly or indirectly benefit the county.

Saba Ali: Sali1@poughkeepsiejournal.com: 845-451-4518: @MsSabaAli.

This article originally appeared on Poughkeepsie Journal: $6B power project to move forward; tests show no water contamination