New York state lost a jurisdiction dispute with the Federal Energy Regulatory Commission Tuesday, after the U.S. Court of Appeals for the Second Circuit declined to review whether the federal energy regulator had big-footed the state when it gave the green light to a controversial natural gas pipeline project in Orange County.

The panel of U.S. Circuit Judges José Cabranes, Debra Ann Livingston and Susan Carney denied the petition for review of two orders by the FERC, made by the New York Department of Environmental Conservation, that authorized Millennium Pipeline Co. to begin construction of a natural gas pipeline to service a local power plant.