Minnesota's snail's-pace permitting of the much-needed, much-anticipated, and thoroughly scrutinized Line 3 Replacement Project has now led to an unacceptable and problematic delay.
Enbridge announced late last week it will hold off on construction for a year because the permitting process in the state was taking longer than expected, causing a hold-up also of federal permits the project needs. The energy company had hoped to be pumping oil by the end of this year. Its beginning of service is now delayed to the second half of 2020, the company said in a public statement.
The state's slowness is despite a unanimous decision in June by the Minnesota Public Utilities Commission to approve the $2.6 billion project. And why wouldn't the commission approve it? Really, this is just basic infrastructure repair. The existing Line 3 is aging, corroding, and only operating at about 51 percent of its capacity as a result. Replacing it means reducing any possibility of an oil leak.
Despite the project's clear and overwhelming environmental benefit, it finds itself in the crosshairs of those opposed to fossil fuels. The state Department of Commerce and others filed legal challenges to overturn the Public Utilities Commission decision, even though the vote followed a lengthy review of the science, an exhaustive consideration of concerns, and considerable public input. Gov. Tim Walz announced in February he'd continue Commerce's appeal.
"In choosing to continue this appeal, the Governor has thrown a wrench in the creation of thousands of union jobs and improving rural schools," U.S. Rep. Pete Stauber said in a statement last week. "Governor Walz must know that good-paying union jobs are vital to Minnesota's success, so I was incredibly disappointed."
ADVERTISEMENT
The project includes $1.5 billion of direct private investment in our region and 4,200 construction jobs for northern Minnesota. The project also is to generate $500 million of additional economic activity in our state, including 2,800 retail and hospitality jobs and 1,600 manufacturing and construction supply jobs. Delaying the project means delaying all that economic benefit.
It also means a "fresh setback" for "Canada's already beaten-down oil industry," as Bloomberg News reported Monday. A shortage of pipeline space already is resulting in less oil getting to refineries. Line 3 was expected to help end mandated production cuts and reduce the amount of oil now moving at greater risk by rail from Canada to American refineries.
There was reason for optimism in Enbridge's announcement, however: "We now have a firm schedule from the state on the timing of the remaining permits," Enbridge CEO Al Monaco said. So some certainty and predictability for the company.
Also, "We do not waver in our confidence that this project will be completed," as Michael McKinnon, a spokesman for Alberta's energy ministry, said in an emailed statement to Bloomberg News.
Despite the disappointment of a project delay caused by slow state permitting, too much economic, industry, environmental, and economic good is at stake for this project not to be completed.
