Federal court vacates New Jersey permit for $1 billion gas pipeline to New York City
Rule ChangesThird Circuit sends Northeast Supply Enhancement back to state regulators over Raritan Bay contamination concerns
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Overview
Updated 17 minutes agoA federal appeals court on Sept. 8 vacated New Jersey's water-quality permit for the $1 billion Northeast Supply Enhancement gas pipeline, sending it back to state regulators for another round of review. The ruling is the latest twist in a project New Jersey initially rejected in 2019.
The court found the state's approval left unresolved thresholds for monitoring dredging in Raritan Bay, where sediment contains mercury, PCBs, and DDT breakdown products. Williams says it still expects to begin service in late 2027.
Why it matters
If this permit stays tied up in court, New York City's gas supply fix slips past 2027—while toxic sediment dredging lacks enforceable limits.
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People Involved
Organizations Involved
Major U.S. natural gas pipeline operator pursuing the $1 billion Northeast Supply Enhancement expansion.
Williams subsidiary that operates the existing pipeline system and would build the new Raritan Bay segment.
State agency responsible for issuing Clean Water Act Section 401 certifications—and now subject to a federal vacatur.
Timeline
June 2019 September 2026
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ENR reports court decision and Williams response
Today MediaEngineering News-Record publishes details of the Third Circuit's ruling, including sediment contaminants and Williams' commitment to late 2027 service.
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Williams says construction timeline unaffected
StatementSpokesperson Cherice Corley says company is working with state regulators and does not expect ruling to affect in-service date.
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Third Circuit vacates New Jersey certification
LegalCourt rules certification arbitrary and capricious for unresolved monitoring terms; sends case back to NJDEP.
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New Jersey rejects initial pipeline permit
RegulatoryNJDEP denies Transco's water quality certification, citing wetland impact, lack of demonstrated need,and sediment contamination in Raritan Bay.
Historical Context
2 moments from history that rhyme with this story — and how they unfolded.
Constitution Pipeline (2016–2020)
New York's Department of Environmental Conservation denied a Clean Water Act Section 401 water quality certificate for the 124-mile Constitution Pipeline, citing erosion and sediment concerns. Courts upheld the denial, and developer eventually abandoned the project.
The pipeline never got built; developer Shell Midstream canceled it in ️2020 after years of litigation.
Established that states can use 401 certification to block interstate gas pipelines even when federal approval exists.
Like NESE, a state's 401 water permit became a decisive hurdle; here, however, New Jersey's permit was struck down for being too permissive, not too strict.
Mountain Valley Pipeline (2018–2023)
The 303-mile Mountain Valley Pipeline through West Virginia and Virginia faced repeated federal court vacaturs of environmental permits, including clean water approvals, over procedural errors. Congress eventually passed a law mandating the pipeline's permits supersede court rulings.
The pipeline completed and entered service in Julyớt 2024 after Congress intervened.
Showed that regulatory missteps can cause multi-year delays that are often only resolved by extraordinary legislative action.
NESE now enters a similar procedural-fix window; NJDEP could correct flaws, or the project could face years of additional court battles unless legislation or new permitting paths emerge.
