Court Hears Challenge to New Jersey Approval of Transco Pipeline

A federal appeals court is reviewing New Jersey's approval of the Transco Northeast Supply Enhancement pipeline after environmental groups challenged the state's permitting process and public review procedures.

(P&GJ) — A federal appeals court is reviewing a legal challenge to New Jersey's approval of Williams' Transco Northeast Supply Enhancement pipeline project after environmental groups argued state regulators failed to follow required public review procedures, according to a report by Courthouse News.

The dispute centers on the proposed interstate natural gas expansion, which would extend the Transco pipeline system from Lancaster County, Pennsylvania, beneath the Lower New York Bay and into New York City and the Hudson Valley. New Jersey regulators denied the project's first two water quality certification applications in 2019 and 2020 before approving a revised application in 2025.

During arguments before the U.S. Court of Appeals for the Third Circuit, attorneys for the Natural Resources Defense Council and New York-New Jersey Baykeeper contended the New Jersey Department of Environmental Protection improperly issued the certification without requiring additional public review of key environmental documents. They argued that monitoring and adaptive management plans should have been completed and made available for public comment before approval was granted.

The environmental groups also said a revised stormwater management plan was never adequately disclosed during the permitting process, leaving interested parties unaware of significant project materials until litigation began. According to Courthouse News, the judges questioned both the environmental groups and state attorneys about whether the agency's approval conditions provided sufficient oversight before construction could begin.

New Jersey defended its decision, arguing the certification complied with state and federal requirements because additional environmental plans must still receive agency approval before any construction activities can proceed. Transco also maintained that it met all public notice obligations under existing regulations and that no additional public notification was legally required for the updated project documents. The Third Circuit did not issue a ruling following the hearing.