Latest news with #MarieJ.French
Politico
21-07-2025
- Business
- Politico
Tax credit whiplash
Good morning and welcome to the weekly Monday edition of the New York & New Jersey Energy newsletter. We'll take a look at the week ahead and look back on what you may have missed last week. TAX CREDIT WHIPLASH — POLITICO's Marie J. French and Ry Rivard: The accelerated phaseout of federal tax credits for clean energy has increased uncertainty for state efforts to bolster renewables. States are delaying procurements of new renewables, including offshore wind and solar, as they evaluate the energy impacts of the One Big Beautiful Bill Act. Energy experts and policymakers expect consumer costs to be higher due to policy changes in the GOP megabill. 'Those costs will certainly increase, not just from short term supply shocks and the loss of federal tax credits but also from the uncertainty,' said Julia Hoos, an energy analyst with Aurora Energy Research. Why it matters: New York, New Jersey and other Northeast states have ambitious renewable energy goals. Democratic leaders were already signaling delays in meeting them after rising costs led to canceled contracts before President Donald Trump's election, but the looming end of federal support elevates the uncertainty and potential for missed milestones. 'These goals were based on, predicated on, offshore wind and solar really emerging as primary energy sources,' Gov. Kathy Hochul told reporters on July 11. 'But I have to deal with the reality that with a president that's hostile to those interests — and has told me directly that — how do we pretend that the goals will be met when all the incentives to invest in those industries has dissipated?' PJM TO HEAR FROM GOVERNORS — POLITICO's Ry Rivard: The embattled operator of the nation's largest electric grid agreed to hear from concerned governors' offices next week following a bipartisan letter from state leaders questioning whether it has its act together. In recent days, 10 governors, including three Republicans, have questioned the direction taken by PJM Interconnection LLC, which runs the grid and energy market for 13 states and Washington, D.C. PJM board Chair David Mills said Friday the grid operator would make time at the July 23 PJM Members Committee meeting to hear from the governors' representatives, who are expected to urge the grid operator to fill two seats on its nine-seat board with people handpicked by the states. On Wednesday, the governors of Delaware, Illinois, Kentucky, Maryland, Michigan, New Jersey, Pennsylvania, Tennessee and Virginia told PJM it is facing an 'unprecedented crisis of confidence.' On Thursday, Ohio Gov. Mike DeWine, a Republican, sent PJM a separate letter saying he supported his fellow governors' position. While blue states have long criticized PJM, the bipartisan criticism is perhaps the most serious political threat to PJM in its decades of existence. In a letter to governors, Mills — a former energy industry executive and consultant — defended his organization's record and said PJM is keeping the lights on 'through some of the most challenging circumstances that any grid operator, anywhere, has faced.' HAPPY MONDAY MORNING: Let us know if you have tips, story ideas or life advice. We're always here at mfrench@ and rrivard@ And if you like this letter, please tell a friend and/or loved one to sign up. Want to receive this newsletter every weekday? Subscribe to POLITICO Pro. You'll also receive daily policy news and other intelligence you need to act on the day's biggest stories. Here's what we're watching this week: MONDAY — The New Jersey Department of Environmental Protection is expected to publish substantially amended coastal building rules i n the New Jersey Register. TUESDAY — The Department of Public Service holds public statement hearings on the Propel NY transmission project on Long Island, 1 and 6 p.m., Knights of Columbus, 81 Sea Cliff Ave., Glen Cove. — The Department of Public Service holds public statement hearings on the Con Edison rate hike proposal, 6 p.m., JCC of Staten Island. — The Department of Environmental Conservation holds a hearing on the draft cryptocurrency environmental impact report, 2 p.m. WEDNESDAY — The New York State Energy Planning Board meets to vote on a draft energy plan, 1 p.m., Empire State Plaza, Meeting Room 6, Albany. — The Department of Public Service holds public statement hearings on the Propel NY transmission project on Long Island, 1 and 6 p.m., Nassau County Legislature. — The PJM Members Committee is expected to hear complaints from governors' representatives, 3 p.m. — The Department of Environmental Conservation holds a hearing on the draft cryptocurrency environmental impact report, 4 p.m. Around New York — 'This is a project of super-importance to the Trump administration, and I was honored to be asked to do it,' Andy Byford told City & State. — explores whether blocking gas-fired power plants was a mistake. — OPINION: NYSERDA President and CEO Doreen Harris touts programs to help New Yorkers save on energy bills, plus a nascent idea for a new nuclear plant upstate. Around New Jersey — NJ Transit's new budget 'calls for $980 million in fare revenue, but NJ Transit has failed to make its fare revenue goals for the past nine years,' Larry Higgs reports. What you may have missed NETFLIX EXEMPTION — POLITICO's Ry Rivard: Netflix is getting a major exemption from New Jersey's new coastal flood rules after months of lobbying over permitting issues at the sprawling former Army base it is working to redevelop. The carve-out will allow one of Democratic Gov. Phil Murphy's pet projects — a $1 billion film and television studio — to avoid complying with climate change regulations his administration has been working on since before the pandemic. Changes to the draft rules show the administration plans to exempt film studios, like Netflix, that have partnerships with the state's Economic Development Authority. Netflix is planning to build 12 soundstages at Fort Monmouth, a 292-acre former Army installation in Eatontown and Oceanport, New Jersey. State Sen. Declan O'Scanlon, a Republican who represents the area, said he's 'thrilled' Netflix got the carve-out but said every coastal development project should get the same level of 'deliberation and fair consideration.' The governor called changes to the flood rule a compromise. 'This is a classic situation where you're trying to get the right balance,' Murphy told reporters Tuesday in Newark. In lobbying disclosures from this year and last year, Netflix reported lobbying the DEP 'regarding environmental permitting issues related to the development of the former United States Army Base named Fort Monmouth.' The company also reported lobbying Eric Brophy, the governor's deputy chief of staff for economic development, about 'DEP flood report rules.' OFFSHORE WIND TRANSMISSION TERMINATED — POLITICO's Marie J. French: President Donald Trump's quest to stop 'windmills' in the ocean has led New York to abandon a major transmission project intended to support offshore wind. The decision to cancel the proposed investment is an acknowledgment that New York will not meet its 2035 offshore wind target given Trump's indefinite pause on permitting for the technology. Offshore wind is fundamental to the state's efforts to reduce greenhouse gas emissions. Public Service Commission Chair Rory Christian criticized federal attacks on the industry and said the commission's decision was necessary to protect ratepayers. The commission canceled the process to select a transmission plan during its regular monthly meeting Thursday. — On the 2035 target: 'Staff does not expect any additional generation to be developed in the New York Bight until federal policy changes, and even if the federal government resumes its support of the industry in a few years, projects will likely not be operational by 2035,' said Liz Grisaru, a senior adviser for policy at the department, during the meeting. After the meeting, DPS spokesperson Jim Denn said 'while the goals will be difficult to achieve by 2035, it is possible more offshore wind projects could come online by then depending on whether there are any shifts in federal policy.' — Reactions: The New York League of Conservation Voters' Julie Tighe said the group is 'deeply disappointed' by the decision. 'While the federal government continues to undermine progress on clean energy, New York should be doubling down on our commitment to become energy independent, not stalling it,' she said in a statement. 'These lines take many years to plan, permit, and build — by kicking the can now, we're risking falling behind in our clean energy transition and driving up costs in the future.' Natural Resources Defense Council's Chris Casey also found the decision 'deeply disappointing.' 'Rather than stepping back, the state should be continuing low-cost, high-value work — such as completing the grid operator's cost benefit analysis, selecting the most effective project, and advancing state-level approvals — to position New York to move quickly once federal barriers ease,' he said in a statement. The Alliance for Clean Energy New York and the New York Offshore Wind Alliance, which pushed for work to continue on the transmission project, issued a more milquetoast comment: 'Offshore wind projects can take more than a decade to develop, spanning far beyond state and federal election cycles. We encourage New York State to continue developing infrastructure in the near-term that will enable new generation to come online, addressing reliability and affordability for New Yorkers.' ENERGY ASSISTANCE EXPANDED — POLITICO's Marie J. French: More utility customers in New York will receive bill discounts under an expanded affordability program approved Thursday. The Public Service Commission voted to expand eligibility for the state's 'energy affordability program' to moderate-income residents. The move is expected to provide financial assistance to an additional 1.6 million households. 'With this expanded policy, we expand our reach to more households — households who had previously been excluded from this vital support because they didn't meet legacy criteria — even though they were still struggling to pay their bills,' said Public Service Commission Chair Rory Christian. 'More New Yorkers will be able to afford to keep the lights on.' Utility costs have been raising affordability concerns, with Gov. Kathy Hochul slamming proposed rate hikes and customer advocates pointing to the high number of people unable to pay their bills. The expanded program was required by the state budget passed in 2023 as lawmakers sought to address those concerns. — Also at the PSC: The commission took steps to hold utilities accountable for delays and problems with community solar credits and billing. New performance metrics could penalize utilities, although the commission only adopted two of six proposed measures. That was partly due to a recognition that complaints about consolidated billing have declined in recent years and that any costs to improve utility billing systems would be passed on to ratepayers. 'I think these provisions are going to encourage the right behavior from utilities and also, compensate customers if utility behavior is not aligned with our expectations,' Christian said. About 224,000 customers across the state are enrolled in community distributed generation programs, according to Department of Public Service staff. The commission also authorized the utilities to increase the fee utilities collect from community solar projects from 1 percent to 1.5 percent to cover their costs to comply with the order .… The commission also approved a Rochester transmission project to improve reliability … Central Hudson will have to start demand response programs and non-pipeline alternatives under a gas planning order. NEXT GOVERNOR COULD EASILY REMAKE BPU — POLITICO's Ry Rivard: New Jersey's next governor could quickly remake state energy policy after taking office by filling three seats on the powerful five-seat Board of Public Utilities. The board has been down a member for more than a year and a second vacancy opened Wednesday following the abrupt departure of Republican member Marian Abdou, who said she was leaving to tend to her family. A third spot could open next March, when Democratic commissioner Zenon Christodoulou's term expires. That means unless Gov. Phil Murphy, a term-limited Democrat, can get the Senate to quickly approve a pair of new members, his successor will be able to totally reshape the board during their first months in office. A Murphy spokesperson said the governor expects to fill the vacancies during the lame-duck legislative session after the election in collaboration with the Senate. UTILITY CALL CENTER LAW UNCERTAIN — POLITICO's Marie J. French: The fate of a union-backed measure to keep and expand utility customer service jobs in New York is uncertain after a federal court ruling. GREENWAY — Gov. Phil Murphy broke ground on a new rails-to-trails greenway to connect Newark and Jersey City. In the bed of an old Norfolk Southern line, the trail for bikes and pedestrians will eventually extend for nine miles through parts of Essex and Hudson counties. The first mile, which is in Newark and expected to be completed by the end of 2026, will cost about $65 million. It will be the first new state park in decades. Brendan Gill, an Essex County commissioner who championed the project, said it took 15,000 letters to Murphy and other officials to get going and had been under discussion for well over a decade. 'There was excuse after excuse after excuse as to why this project was never going to happen,' he said. Sen. Teresa Ruiz, who represents Newark, described the toxins and shabbiness of the area when it was an abandoned rail line and said, 'imagine the good of what this open space can do.' — Ry Rivard
Politico
23-06-2025
- Politics
- Politico
All eyes on the Assembly
Good morning and welcome to the weekly Monday edition of the New York & New Jersey Energy newsletter. We'll take a look at the week ahead and look back on what you may have missed last week. ALL EYES ON THE ASSEMBLY — POLITICO's Marie J. French: Any chance that New York lawmakers will make significant progress on tackling climate change this legislative session rests with Assembly Democrats — a concerning prospect for frustrated environmental advocates. The Senate has left Albany for the session, but the Assembly plans to linger for a few days this week. Several environmental proposals remain pending, including a sweeping measure aimed at reducing plastic and packaging waste and two options to limit gas infrastructure. These are the same issues that remained in the final days of last year's session. Then, the Assembly pivoted to pass the Climate Superfund measure to charge fossil fuel companies for past pollution. This year, environmental groups are pressuring the Assembly to step up on implementing more policies to support the state's climate law. 'The Senate did their job last night — again — to do something about our high energy bills. We are paying too much for pipelines we don't need,' said Jessica Azulay, executive director of the Alliance for a Green Economy. 'They have three days to act, and we are watching,' Azulay said of the Assembly. 'If they don't act, we're all in for a long, hot summer.' The Senate passed two different gas transition measures — leaving the choice of whether to allow phasing out gas service for existing homes to the Assembly. The more modest measure is an elimination of the '100-foot rule' for gas. That rule requires other ratepayers to subsidize a portion of the cost of new hookups, reducing upfront costs for those getting new gas service. — The incremental step — the 100-foot rule elimination for gas — is poised to pass in the Assembly, according to two lawmakers. It was moved to the Ways and Means committee on Sunday afternoon, teeing it up for an eventual floor vote. — The packaging reduction measure appears to be falling short, and newly announced opposition from the statewide AFL-CIO may doom the bill this year. 'Unions are not opposed to improving New York's recycling system. But are concerned that this bill goes too far, too fast, and targets the wrong materials,' a press release from industry-backed New Yorkers for Better Recycling states. PENNEAST DECISION DRAMA — The New York Times' weekend dive into Supreme Court Justice Amy Coney Barrett leads with this example: 'Soon after Justice Barrett arrived at the court she began surprising her colleagues. Chief Justice John G. Roberts Jr. assigned her to write a majority opinion — among her first — allowing the seizure of state property in a pipeline case, according to several people aware of the process. But she then changed her mind and took the opposite stance, a bold move that risked irritating the chief justice.' The story doesn't name-check the 2021 PennEast decision, but our POLITICO colleague Alex Guillén reported at the time that, 'Legal experts have been gossiping that someone in the majority switched sides late in the game in the PennEast ruling.' — Ry Rivard HAPPY MONDAY MORNING: Let us know if you have tips, story ideas or life advice. We're always here at mfrench@ and rrivard@ And if you like this letter, please tell a friend and/or loved one to sign up. Here's what we're watching: WEDNESDAY— The New Jersey Board of Public Utilities meets and is expected to discuss electric utilities' plans to cushion rate increases, 10 a.m. Editor's Note: Want to receive this newsletter every weekday? Subscribe to POLITICO Pro. You'll also receive daily policy news and other intelligence you need to act on the day's biggest stories. Around New Jersey — Former BPU Commissioner Mary-Anna Holden in an op-ed: 'Instead of chasing artificial deadlines and politically popular incentives, our leaders should be focused on real-world physics and economics. This means revisiting the Energy Master Plan, rethinking electrification mandates and supporting a balanced generation mix that includes reliable, low-emission sources like natural gas and nuclear while continuing to develop meaningful renewables at a pace our infrastructure can handle.' — Tesla, for one reason or another, is storing lots of cars at the Quaker Bridge Mall. — Weekend blaze in Wharton State Forest is mostly contained. What you may have missed AIMING AT THE BOTTOM LINE — New Jersey lawmakers advanced a trio of bills Thursday aimed at cutting into utility company profits. The bills — S4260, S4304 and S4519 — all cleared the Senate Economic Growth committee. They each aim to reduce power companies' return on equity, which hovers around 10 percent in the state. Two of the bills basically urge the state Board of Public Utilities to rein in profits, but do not set any caps on companies' returns. A third bill, Sen. Andrew Zwicker's S4519, could quantitatively dent profits by removing a special .5 percent return companies are currently eligible for thanks to convoluted federal regulations. Some utilities get this special 'RTO adder' for building transmission projects if they have not formally joined a regional transmission organization, like PJM. Zwicker's bill would require utilities to join PJM, thus disqualifying their projects for the adder. For PSEG, the adder means that the company's return on equity for transmission projects is 10.4 percent, rather than 9.9 percent. The state's ratepayer watchdog, Brian Lipman, testified in support of the bill. He cited previous comments by outgoing FERC Chair Mark Christie who called the adder 'FERC candy' taken from ratepayers and given to transmission companies. The companies argue that without the incentive, there would be fewer transmission projects, which would hurt grid reliability. Joseph Checkley, the head of IBEW Local 94, which represents 3,300 PSEG workers, testified that the union will have less work and fewer apprenticeships if the bill passes. The union, utilities and some Republican lawmakers also said the bill doesn't address the root problem facing the state right now, which is lack of generation causing price spikes. Utilities are also concerned that the bill would force them to join PJM at a time when Democrats have been trying to get leverage over PJM. PSEG senior vice president Rick Thigpen said in a statement that 'we've heard many public officials criticize the shortcomings of PJM and this bill would force us to remain in that very RTO.' 'While not RTO specific, this bill would mandate that we either remain in PJM or pursue an option of joining a different RTO or creating one from scratch — two options that would be unnecessarily expensive for customers,' Thigpen said. 'This comes at a time when affordability is a top concern and we should be focusing on supporting our customers in the near-term and expanding electric supply in the long-term to enhance resource adequacy.' Zwicker, a Somerset County Democrat, modeled the bill on a recent move by Ohio to get rid of the adder. Also, realistically, he said New Jersey cannot leave PJM anytime soon. 'I would argue that we need leverage, true, but that leverage doesn't exist because we have no other option,' Zwicker said in an interview. While industry groups generally oppose all the bills aimed at curbing return on equity, PSEG said it supported Burlington County Democratic Sen. Troy Singleton's bill (S4260) that would prevent utilities from making 'excess profits.' 'Excess profits is not something we're in support of,' Thigpen told lawmakers during a lengthy hearing. Thigpen said the company would be willing to submit to new annual reviews of its rates. Right now, reviews typically accompany rate cases. Sen. Joseph Pennacchio, a Morris County Republican, wondered if the bill was even needed, since the BPU already examines utilities' finances. 'From my understanding, if the BPU is doing a good job, we're going to be saving nothing,' he said. Another bill without a hard cap, S4304, requires the BPU to allow utilities only the 'lowest reasonable return.' None of the bills increase the energy supply available to the state, which lawmakers from both parties agree is the only long-term solution to price spikes. Separately, a bill to explore the role that nuclear power should play in the state cleared the Senate Energy and Environment Committee. The bill (S220) was sponsored by Pennacchio and Sen. Bob Smith, the Middlesex County Democrat who chairs that committee. — Ry Rivard ASSEMBLY GETS OPTIONS ON GAS: The New York Senate is moving two options on efforts to limit the expansion of the state's gas system. One is a repeal of what's known as the '100-foot rule,' which requires other customers to subsidize portions of new gas hookups. If enacted, this would require developers to pay the full cost of building out infrastructure to connect to the gas system. Opponents argue this would raise new home costs and provide minimal savings to existing customers since selling more gas spreads out costs and the investments are paid off over decades. Supporters of slashing the subsidy say it runs counter to the state's climate goals and eliminates added costs from new hookups that contribute to rate increases. The other option is a scaled back but still ambitious planning proposal to begin dismantling sections of the gas system. This renamed NY HEAT bill, dubbed the 'Customer Savings and Reliability Act,' also includes changes to the 100-foot rule. But it goes much further, allowing the Public Service Commission and utilities to involuntarily remove customers from the gas system after 2030 with several guardrails including extensive public engagement, some support in the affected area, and alternatives being provided at 'no cost.' It's not clear whether Assembly Democrats will move this broader measure, although it has won over some lawmakers. Repeal of the 100-foot rule has even more support. Opponents of NY HEAT have pushed back on the updated measure. 'They simply want fewer people on the gas system, so they want to make it more expensive,' said Republican Assemblymember Phil Palmesano at a Thursday press conference. He promised a four-hour debate if Assembly Democrats bring the updated NY HEAT bill to the floor. Business groups are also opposed, despite specific protections for their gas service in the bill. 'As you remove users from the system, you increase the cost to users who have no choice,' said Ken Pokalsky, with the Business Council of New York State. Proponents of a planned gas transition say customers will switch to electric alternatives anyway. The proposed planning process offers a more managed shift than the status quo, with opportunities for savings from avoided gas infrastructure savings, they say. 'As my staff and I engage more closely with the Con Ed rate cases impacting our district, I can see more clearly than ever the urgency of ending the 100-foot rule,' said Democratic Assemblymember Dana Levenberg. 'We cannot hope to bring down utility costs while still requiring utilities to maintain vast networks of gas pipelines.' — Marie J. French BIOSOLIDS MORATORIUM ADVANCES: The Senate also passed a five-year moratorium on using biosolids — from wastewater and industrial sources — as fertilizer, topsoil or mulch. The bill also looks to be moving in the Assembly. Supporters are concerned about PFAS contamination from the waste, pointing to Maine, where farmland was contaminated by the practice. The state's operators of wastewater treatment plants are concerned. A five-year ban on spreading biosolids on land would remove a key option to dispose of the waste product, according to the New York Water Environment Association. 'There is inadequate capacity in New York State landfills for this volume of additional biosolids, as many have limited space and biosolids often must be mixed with other debris to provide structural integrity within the landfill operational cells,' the group wrote in a letter on the bill. — Marie J. French PSC GREENLIGHTS TRANSMISSION UPGRADES: The Public Service Commission approved more transmission upgrades linked to increased load, including from electric vehicle charging fleets and other plans. These 'urgent upgrades' need to get started more quickly than would happen if they waited for approval through a rate case, the commission decided at Thursday's meeting. The approved projects total $636 million in costs and will enable 642 megawatts of electrification upgrades — which Department of Public Service staff said was under the 'industry standard' cost of $1 million per megawatt. The 29 projects approved include $439.9 million for five Con Ed projects including to allow for electric vehicle charging at Zerega Avenue and Hunt's Point. Utilities had proposed 65 projects totaling $1.9 billion in costs. The projects that weren't approved are expected to be considered through rate case proceedings. 'We are not taking steps to subject ourselves to near-term risks in the future, we're looking to address long-term opportunities and by doing that we limit the costs, we make our investments more efficient and we make them most importantly more effective,' said Public Service Commission Chair Rory Christian at the meeting. 'This process increases transparency as well because frankly it's hard for many people to engage in rate cases. And this gives a one-stop opportunity for people to examine the various electrification efforts underway throughout the state.' — Marie J. French WAIVER GOODBYE — POLITICO's Alex Nieves: President Donald Trump moved Thursday to eliminate California's nation-leading vehicle emissions standards, upending strict rules that had become a template for other states, including New York and New Jersey, to realize their greenhouse gas ambitions. COLUMN ON WAIVER — POLITICO's Debra Kahn: It's a far cry from the bipartisan consensus that reigned when President Richard Nixon famously signed the Clean Air Act, which set federal air pollution levels for the first time but gave California permission to continue going further, owing to its decade-plus of vehicle emissions rules aimed at the smoggy Los Angeles basin. EMISSIONS DISCLOSURE CONCERNS — POLITICO's Marie J. French: Business groups are preemptively ramping up opposition to a climate emissions disclosure bill in the frantic last days of session. Led by the Business Council of New York State, industry groups are warning lawmakers against New York's version of a greenhouse gas reporting bill that's mired in legal and regulatory delays in California. There's some concern from opponents that the measure could become the last-minute 'environmental thing' lawmakers move before leaving Albany. ACE'S RATE RELIEF — Atlantic City Electric has a plan to help customers deal with rising power prices. The plan resembles one already submitted by PSE&G and is likely to mirror what other utilities in the state will do, though some of the actions may require Board of Public Utilities approval. ACE said it will stop disconnecting eligible customers' service from July through September. Gov. Phil Murphy previously suggested utilities take this step and PSE&G has already announced it would. ACE also plans to allow for longer repayment terms for residential customers, up to 24 months, and will submit a plan to the BPU that would give customers a deferred credit on their July and August bills that would be recovered without interest over a six-month period. 'While utility companies in New Jersey do not generate their own energy, do not set the price of electricity, and do not profit from the supply cost increases that took effect June 1, we fully understand that rising energy costs stemming from PJM's 2024 Capacity Auction are a challenge for our customers,' the company said in a statement. — Ry Rivard FALL SHOWDOWN SET — Republican Jack Ciattarelli and Democrat Mikie Sherrill are set to square off this fall in the New Jersey general election, setting up a showdown over Gov. Phil Murphy's clean energy legacy. The Associated Press called the races for both candidates Tuesday night, not long after polls closed. Sherrill's campaign has promised to push for 100 percent clean energy, the same goal Murphy ran on and won, and picked up endorsements from the Sierra Club and New Jersey League of Conservation Voters. Ciattarelli has blasted the governor's 'obsession with windmills' for driving up electric prices. Ciattarelli began his speech with criticism of Murphy's offshore wind goals. 'We will adopt a rational energy policy that lowers people's monthly electric bills and stops the Democrats from putting those damn wind farms off our Jersey Shore,' he said. He also criticized overdevelopment, something he's previously blamed the Sierra Club for ignoring. Whether wind will be a potent issue for voters, of course, remains to be seen. In her victory speech on Tuesday night, Sherrill framed her campaign as a test of President Donald Trump's policies, though she mentioned Ciattarelli's position on Hurricane Sandy relief and, in a statement after the speech, pledged to 'slash the cost of utilities' by taking 'control of our energy future.' In 2023, Republican legislative campaigns tried to make the environment a wedge issue, but largely failed when Democrats picked up seats in Trenton. Arguably some of those Democrats ran away from Murphy's clean energy plans and, in the years since, lawmakers have not had the stomach to turn the governor's clean energy goals into binding law. There are some reasons why energy issues may be more potent this year, though. The biggest is that energy policy choices have demonstrably and significantly driven up people's power bills. A $25 per month rate increase took effect on June 1. Democrats blame the regional grid operator, PJM; Republicans blame Murphy's focus on offshore wind projects that are dead or delayed. — Ry Rivard NEW GAS TRANSITION MEASURE: Democratic lawmakers introduced a new bill aimed at limiting the expansion and transitioning parts of the gas system. The re-branded new bill is the 'Customer Savings and Reliability Act.' The slimmed down, not-HEAT Act removes provisions around a 6 percent affordability target for energy bills and still eliminates the 100-foot rule to subsidize new gas hookups. For a neighborhood transition project to move forward after 2030, 50 percent of impacted customers would have to agree to get off the gas system. Installation of alternative equipment — electric heat pumps, hot water and cooking systems — would have to be at no cost to customers. Importantly, a utility can opt out of the process. 'It addresses people's concerns,' said Assemblymember Jo Anne Simon, the sponsor of the old NY HEAT and the new bill. 'A transition plan would have to be cheaper … we increase the number of hearings.' Simon said she's 'very hopeful' about the bill's prospects given the revisions. 'It will accomplish the goals of transitioning,' she said. Environmental groups including the New York League of Conservation Voters, Earthjustice, Alliance for a Green Economy and WE ACT for Environmental Justice endorsed the new version. The measure 'would reduce costs for ratepayers, advance region-specific utility planning to decarbonize buildings at a neighborhood-scale, and provide responsible, cost-effective alternatives for heating, cooling and hot water,' the memo states. NY HEAT's staunchest opponents are still opposed, particularly New Yorkers for Affordable Energy, which is backed by labor, pipeline companies and National Fuel. 'It's a blueprint for higher costs and unreliable service,' the group's opposition memo states. One of its members predicts layoffs if the 100-foot rule is eliminated, raising costs for developers seeking new gas hookups since they'll have to pay the full costs rather than being subsidized by other customers. — Marie J. French CORRECTION: Assemblymember John McDonald said local governments would be involved in a new process under a revised gas transition measure. 'It's common sense, moves in the right direction, including local governments and residents in the process,' McDonald said. BLET'S MAKE A DEAL — The union of engineers whose strike idled NJ Transit trains in May voted to ratify a deal that will raise wages to 'over $50 per hour,' the Brotherhood of Locomotive Engineers and Trainmen said Tuesday. The union said its members had overwhelmingly voted to approve the seven-year deal, which replaces one that expired before the pandemic. 'This agreement gives us the pay raises we needed, but also was done without a major hit to NJT's budget and should not require a fare hike for passengers,' union leader Tom Haas said in a statement. The head of NJ Transit, CEO Kris Kolluri, said in a statement he was pleased by the vote. The union's rank and file had previously voted down another deal, teeing up the strike that resulted in this agreement. — Ry Rivard
Politico
03-06-2025
- Automotive
- Politico
The other climate rule Trump's attacks are boosting
Presented by the Stop the Oil Shakedown Coalition. With help from Camille von Kaenel, Marie J. French and Caitlin Oprysko THE OTHER CLEAN-CAR LAW: New York lawmakers reeling from Congress' vote to kill California's electric vehicle mandate are eyeballing another Golden State rule to pick up the slack: the low-carbon fuel standard. Fair warning to Democrats considering this route: Things could get bumpy. A yearslong push in Albany to establish New York's version of the controversial program that sets emissions limits for transportation fuels is regaining steam in the wake of Senate votes last month to revoke a trio of EPA waivers that let California — and a dozen states that follow its lead — enforce stricter vehicle emissions standards. We're still waiting for President Donald Trump to sign the resolutions and kick off a court battle that Attorney General Rob Bonta has promised to wage, but New York enviros are already using the moment to lobby for LCFS standards, as POLITICO's Marie J. French reports. 'New York has to lead,' said Julie Tighe, president of the New York League of Conservation Voters, at a press conference last week. 'We cannot let four years go by without taking real action to transition away from fossil fuels, and Washington, D.C., is not going to help.' New York lawmakers don't need to look particularly hard to find out what sort of headaches they could be in store for if a bill from state Sen. Kevin Parker that would establish the state's clean fuel standard crosses the finish line. (That proposal is awaiting a hearing in New York's Senate Finance Committee and still faces an uphill battle to reach Gov. Kathy Hochul's desk.) Case in point: the bare-knuckled sparring on Friday between moderate Assemblymember Jasmeet Bains, a Bakersfield Democrat and potential 2026 challenger to Republican Rep. David Valadao, and the California Air Resources Board, which approved amendments last year (still pending approval by the state's Office of Administrative Law) to tighten the stringency of the program — and potentially raise gas prices. Bains called on CARB Chair Liane Randolph to resign after she said at a hearing last week on transportation fuels that the agency doesn't extrapolate on how much consumers pay at the pump because 'in many instances, that would be speculative.' 'It is outrageous the director would pursue such policies without even trying to analyze the impact on prices,' Bains said. The incident is part of the continued fallout from last year's messy reauthorization of the nearly 15-year-old program. The heated debate largely centered on concerns about the rule's potential to raise gas prices, and CARB did itself no favors by initially estimating a 47-cent per gallon hike, before walking that figure back. The backlash against Bains was swift, as Gov. Gavin Newsom and environmental groups rushed to Randolph's defense. 'What's outrageous is the Assemblymember's stunt as she gears up to run for Congress,' Newsom spokesperson Daniel Villaseñor said in a statement. Equally important, though, is who was missing from the defense. Business groups that oppose LCFS over affordability concerns, and environmental justice advocates who argue the state should focus on electrification rather than alternative fuels, were nowhere to be found. Assembly Speaker Robert Rivas — who established an oversight committee last month, headed by Assembly Transportation Chair Lori Wilson and Assemblymember David Alvarez, to study the LCFS' impact on prices — also stayed out of the squabble, and his spokespeople didn't respond to requests for comment. Those political dynamics are already shaping up in New York, where the state Senate passed an LCFS bill in 2022 that couldn't clear the Assembly. EJ groups came out against the bill last week, writing in a letter that New York can't 'invest in half-measures and failed solutions that burden environmental justice communities.' But New York businesses are backing Parker's bill. The Business Council of New York State, an Albany-based chamber of commerce with over 3,000 members, announced its support in April, arguing that an LCFS rule would allow the state to 'keep open all fuel and technology options' as it attempts to slash greenhouse gas emissions 85 percent from 1990 levels by 2050. — AN Did someone forward you this newsletter? Sign up here! SPEAKING OF GAS PRICES: Republican gubernatorial candidate Steve Hilton unveiled a plan Monday to lower energy and fuel prices based on dismantling California's climate programs. Hilton, a GOP television personality, released his energy platform the day before he's hosting a forum on fuel prices with former Democratic Majority Leader Gloria Romero, who registered as a Republican last year over issues like gas stove bans. Hilton's to-do list includes his party's top asks: ending the state's 2045 net-zero emissions goal, repealing LCFS and lowering the state gas tax. He's also advocating for nixing the cap-and-trade program Newsom and lawmakers are currently negotiating an extension of. — AN WATER TRUCE: San Diego and Los Angeles are ending 15 years of courtroom fights over the cost of water transfers, citing the need for greater flexibility and collaboration to handle unpredictable supplies caused by climate change. Under a settlement agreement announced Monday, the San Diego County Water Authority will pay the Metropolitan Water District of Southern California a fixed price for water transfers instead of a fluctuating one, which San Diego had repeatedly sued over. The settlement ends an acrimonious chapter in Southern California's water wars that had cost the two agencies tens of millions of dollars in legal fees and driven political battles across regional water boards. It also frees the San Diego County Water Authority — which is currently facing an existential threat because of lower-than-expected water sales — to cut deals with other water agencies to offload some of its unneeded water. San Diego has spent heavily in the past two decades on both importing and desalinating water. Other Southern California communities don't have that same luxury of abundant supplies, with both the Sierra Nevada snowpack and the Colorado River under strain. MWD Board chair Adán Ortega said at a press conference Monday that the settlement agreement would usher in 'a new era of regionalism' that the entire Southwest should recognize. — CvK EAST COAST FOIL: Florida's longtime cautionary tale on property insurance is changing — maybe. After years of massive losses, Florida insurers made a $207 million profit in 2024, Thomas Frank of POLITICO's E&E News reports. Private Florida-based insurers are returning, and the state-run insurer of last-resort, Citizens Property Insurance Corp., is shrinking. The AM Best credit ratings firm credits the turn-around to rate hikes that doubled the average premium between 2021 and 2023 and legal reforms that limited lawsuits by policyholders. California, meanwhile, still hasn't shrunk its own insurer of last-resort or brought back private insurers in any big way, despite setting the stage for increased rate hikes. A STEP TOO FAR: Senate Majority Leader John Thune sidestepped Senate Parliamentarian Elizabeth MacDonough to revoke California's vehicle emissions waivers, but he's not willing to do the same for Republicans' budget 'megabill.' 'We're not going there,' Thune said Monday when asked by reporters if overruling MacDonough is under consideration as the Senate crafts its own budget proposal. MacDonough will play the crucial role of deciding what polices can stay in the bill. Senate Minority Leader Chuck Schumer predicted that House GOP proposals, like a plan to place limits on the ability of federal judges to enforce contempt citations, will be booted. The parliamentarian question is going to follow Thune, who gave the thumbs-up for the unprecedented move to ignore MacDonough's opinion that Congress can't overturn EPA's waivers empowering California to enforce nation-leading emissions standards. — AN ON HIS OWN: Former Interior Secretary David Bernhardt is launching his own firm, he told POLITICO's Caitlin Oprysko. Bernhardt was also a longtime Brownstein Hyatt Farber Schreck lobbyist, including for Westlands Water District. The new Bernhardt Group will primarily provide strategic advice, but may do some lobbying work on an as-needed basis. Bernhardt declined to name any of the new firm's clients. But he said its work won't be limited to natural resources policy and could encompass a number of issues the firm's staff have been involved in, from telecom and privacy to financial services and appropriations. Read more from the interview as well as the full list of people joining him in POLITICO Influence. — The Trump administration is reversing course and keeping eight of the nine USDA field offices it planned to close in California open instead. — Analytics firm First Street forecasts Sacramento will experience some of the country's largest out-migration because of climate risks. — California Democrats want the Trump administration to restaff National Weather Service offices in Sacramento and Hanford that lost the ability to operate 24 hours a day.
