The Atlantic Coast Pipeline Project

December 20, 2016

Re: The Atlantic Coast Pipeline Project (FERC Docket #CP15-554)

Dear Governor McAuliffe:

Together businesses both large and small – located throughout the 16 localities of the Hampton Road region, applaud your continued support of the Atlantic Coast Pipeline. Your dedication to modernizing and diversifying Virginia’s economy in the face of federal sequestration and military restructuring brings much hope to our region. As you know, the Hampton Roads region has been hit hard by defense and other budget cuts and is working very hard to develop new paths to grow our economy. The Atlantic Coast Pipeline is an essential component to our strategy and will help lay the groundwork for the future development and prosperity of our region.

In the two years since the Atlantic Coast Pipeline was first proposed, Hampton Roads has already experienced a resurgence of interest from businesses that are interested in locating in our region. The prospect of a new, reliable and affordable source of energy has been instrumental in attracting these economic prospects. The lateral line that will run through our region will give us direct access to the most abundant and affordable domestic energy supply in our country – exactly the kind of dependable and low-cost energy our region needs to attract new industries.

Reliable access to natural gas is essential to ensuring Hampton Roads can continue to grow and prosper for many years to come. As you are aware, our region’s existing pipeline infrastructure is operating at full capacity and is unable to support any substantial new economic development. Our existing pipelines are so constrained that during periods of peak demand on the coldest days of recent winters there has been curtailment in some areas of Hampton Roads.

According to local natural gas suppliers, during the winter of 2013-2014 service to industrial customers in Hampton Roads was curtailed so that home use would not be impacted. That is not a recipe for growth in Hampton Roads, and it does not give new businesses the confidence they need to invest in our region. If we are unable to assure new businesses that they will have reliable, affordable access to natural gas, they will look elsewhere for investment. With the Atlantic Coast Pipeline, our region will be in a much stronger position to attract these new businesses, and the jobs and investment they will create in Hampton Roads.

Beyond the long-term economic development potential the Atlantic Coast Pipeline promises for Hampton Roads, the pipeline will also generate a significant amount of new tax revenue for our localities. Operation of the pipeline is expected to contribute $10.4 Million annually in property taxes to those localities impacted by the pipeline. Of this, nearly $2 Million will go to the cities of Suffolk and Chesapeake and county of Southampton, annually. That new tax revenue will enable these localities to make much needed investments in public schools, transportation, fire and safety and other important local services.

The availability of new supplies of lower-cost natural gas will also result in significant energy cost savings for residents and businesses across Virginia. Studies conducted in 2015 by ICF International estimate that Virginia consumers will see more than $240 million each year in average energy cost savings. That savings is enormously important for low-income and elderly residents in Hampton Roads, and it will also benefit existing businesses in our region who, according to the same report, will each see lower energy bills. Lowering energy costs for businesses enable them to grow, hire more employees and make investments in new equipment and facilities.

Finally, a thorough examination of the planning and approval process necessary for a project of this magnitude is underway and we are confident this pipeline will be built in a safe and environmentally responsible manner that protects the communities and natural resources of the Commonwealth.
For these reasons, we appreciate your continued support of this project. Like you, we recognize how vitally important it is to the future of the Hampton Roads economy. As the Atlantic Coast Pipeline progresses through the approval process and ultimately reaches construction, we are encouraged to know that our region can continue to rely on your support.

Sincerely,

International Brotherhood of Boilermakers Local Union 45
Chesapeake Bay Helicopters, Inc.
Dominion
Dale Carnegie Training
Enspire Energy
Faneuil
Franklin Southampton Economic Development, Inc.
Franklin-Southampton Area Chamber of Commerce
Fulton Bank
Hampton Roads Association for Commercial Real Estate
Hampton Roads Chamber of Commerce
Huntington Ingalls Industries
Isle of Wight-Smithfield-Windsor Chamber of Commerce
Merrill Lynch
Newport News Shipbuilding
Reinvent Hampton Roads
TFC Recycling
Virginia State Building & Construction Trades Council
Tidewater Builders Association
Towne Insurance
Virginia Asian Chamber of Commerce
Virginia Chamber of Commerce
Virginia Economic Developers Association
Virginia FREE
Virginia Hispanic Chamber of Commerce
Virginia Natural Gas
VIRTUoL Designs, LLC
Waste Management
Wolcott Rivers Gates Attorneys at Law

Cc: Commissioner Kimberly D. Bose, Federal Energy Regulatory Commission
Members, Virginia Congressional Delegation
Members, Virginia General Assembly

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