Newark Energy Center Vote Postponed; $23 Million in Limbo

The national debate about pollution and climate change played out in microcosm during a special meeting of the Newark Municipal Council Wednesday night, when environmentalists squared off against citizens favoring more development and the jobs it would bring.

At issue is the granting of an easement for underground power lines that would serve the Newark Energy Center, a natural gas power plant to be built in the Ironbound by the Hess Corp. The city’s planning board approved construction of the plant several weeks ago.

The easement -- which would grant Hess permission to install the lines beneath sections of Delancy Street, Doremus Avenue, Avenue P and Wilson Boulevard -- comes with a sweetener: in exchange for council approval, Hess would pay the city $11 million. In addition, Hess would build a $5 million stadium for East Side High School and would also supply $7 million for a variety of local green measures, including environmental remediation of Newark homes.

The company has said, however, that if the Newark Municipal Council failed to grant the easement, it would instead seek to run the lines through neighboring Kearny, leaving Newark with the 655-megawatt plant but without the additional funds. (Hess would still make annual payments in lieu of taxes to Newark of at least $2.6 million a year.)

Wednesday night’s public hearing at city hall had no direct impact on whether the plant would be built, being limited to the relatively narrow question of the easement. But supporters and opponents of the facility revisited issues first discussed when Hess sought planning board approval.

Several members of a labor union, Millwrights Local #715, expressed their support for the plant, which would generate an estimated 400 jobs while it was being built. City residents also spoke out in favor of the plant during the hearing, also pointing to the jobs it would create.

But others complained that the benefits were paltry compared to the long-range impacts. One Ironbound resident said that prevailing winds would spread plant pollution across the city, leading to higher asthma rates and other problems. Kim Gaddy, of the city’s environmental commission, said the plant would become another major polluter in an area that already has several, also pointing out that the millions Newark would receive for granting the easement pale in comparison with the billions Hess would get in revenue.

“In my opinion, the goodies they’re giving mask the effects of the plant. It’s 30 pieces of silver,” said West Ward Councilman Ron Rice.

John Seker, a project specialist with Hess who addressed the council Wednesday, countered that the Newark Energy Center, powered by natural gas and built with the latest technology, would be far cleaner than the region’s other energy sources, including a nearby coal-fired plant. When the Hess facility comes on line, it is expected to “displace” energy produced by its dirtier and less efficient competitors, resulting in less pollution and greenhouse gas emissions, Seker said.

Responding to a question from Council President Donald Payne, Seker also said Hess would be willing to revisit its deal with the city, prompting the governing body to vote in favor of deferring a final vote on the easement question.

Council members hinted that they might ask for additional cash from the company or stronger guarantees of jobs for city residents, as well as additional information about the environmental impact of the plant. By law, however, the council can only make suggestions -- Mayor Cory Booker’s office would be responsible for finalizing an agreement. 

The state Department of Environmental Protection is holding a hearing on the the facility’s air permit, during which the public can also testify about the plant. That hearing will be held July 26* from  7 to 9 pm at city hall.  

*The date was originally listed incorrectly.