Judge upholds denial of state permit for $500M Danskammer power project in Newburgh
TOWN OF NEWBURGH - An Orange County judge has dealt another blow to plans for a $500 million gas-fired power plant to replace the 70-year-old Danskammer plant on the Hudson River.
In a 77-page ruling on Wednesday, state Supreme Court Justice Robert Onofry upheld the state's denial last year of a vital permit for the Danskammer project. He affirmed the permit could be rejected under a 2019 state law that aims to slash greenhouse gas emissions and phase out electricity generation by natural gas or other fossil fuels in New York by 2040.
Danskammer's attorneys had argued in their court challenge that the Department of Environmental Conservation had no basis for the denial because no detailed rules have been written yet for meeting the goals of the 2019 climate law.
Onofry soundly rejected that argument, saying the company's interpretation of the part of the climate law invoked by the DEC "would render it meaningless." He said the law's requirement that the DEC consider a project's climate impact "serves no practical or meaningful purpose" if it can't deny a permit after that analysis.
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The ruling was the latest roadblock for Danskammer and the 536-megawatt plant it has sought to build since 2018. The new plant would replace Danskammer's aging facility off River Road in the town of Newburgh, which also runs on natural gas and is operated only sporadically when electricity use spikes and more power is needed in the region.
The company is also contesting the permit denial from last October through an administrative appeal with the DEC. But its lawyers hold little hope that the DEC will overturn its own decision, calling the appeal "futile" in the lawsuit they filed in Orange County in December.
Environmental groups cheered
Environmental groups cheered Onofry's ruling on Friday. They've been fighting to prevent a new fossil-fuel plant that they - and the DEC - say would make it harder for New York to curb greenhouse gases and fully switch to renewable energy sources.
"It affirms what we've known all along, that Danskammer's proposal violates New York's climate law," said Emily Skydel, Hudson Valley organizer for Food & Water Watch. "Danskammer can continue looking for ways to push the project forward to save face with shareholders, but the project is clearly dead."
Hayley Carlock, director of environmental advocacy and legal affairs at Scenic Hudson, called the decision "a huge nail in the coffin for the Danskammer project" and an encouraging court precedent. She said it marked the first legal test for the 2019 climate law, and showed it can be used to reject projects that violate the state's goals.
Carlock said the ruling was a victory for Danskammer's opponents but probably not the end of the battle. The company's appeal with DEC must now take up technical disputes over greenhouse gas emissions and whether their net levels would increase or decrease with a cleaner-burning - but regularly used - Danskammer plant.
DEC officials said in a short statement that they were pleased with Onofry's decision and will "continue to review all relevant permit applications to ensure compliance with applicable law, including the requirements of the Climate Act."
Danskammer spokeswoman Michelle Hook could not be reached on Friday for comment on the ruling. The company has argued its proposed plant would lower greenhouse gas emissions overall by displacing power generated by older, less efficient plants that cause more pollution.
Chris McKenna covers government and politics for the Times Herald-Record and USA Today Network. Reach him at cmckenna@th-record.com.
This article originally appeared on Times Herald-Record: Judge upholds DEC's permit denial for $500M Danskammer power project
