Latest news with #NewYork&NewJerseyEnergy
Politico
a day ago
- Business
- Politico
Rate relief politics
Presented by 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. Driving the day RATE RELIEF POLITICS — Immediately after the Murphy administration unveiled its $430 million utility rate relief plan last week at a press conference flanked by Democratic lawmakers, Republican lawmakers who were not there began jumping on the plan as a kind of an election year political gimmick. But, reading between the lines of their statements, Republicans seemed not to actually oppose the plan, which will knock from $100 to $250 off electric bills in coming months, depending on a ratepayer's income. Senate Republican Leader Anthony Bucco said his criticism isn't of the plan, it's of the problem the plan is meant to address. 'They have to do something,' he said in an interview. 'But we shouldn't be in this position to begin with. And don't call it relief — it's really not relief — they are taking it from the taxpayers and giving it back to them.' What Bucco means is that money for rate relief package comes from charges and fees that utility customers have paid or will pay in some form or another. In a written press release the governor's office was clear about where the money is coming from — the state Clean Energy Fund, the state Board of Public Utilities' share of Regional Greenhouse Gas Initiative proceeds and the Solar Alternative Compliance Payment account, which is funded by payments from utilities that didn't buy enough solar energy credits. Normal customers might be forgiven for not knowing what any of that means, but the Republican criticism is that the rate relief plan is basically a rebate program, though that's the way many government aid programs work. From the Democrats' point of view, by using money that wasn't intended for rate relief — like RGGI and Clean Energy Fund money, in particular — the administration was able to cushion the blow of rising rates without drawing on general fund dollars that could soon be needed for other unexpected costs. 'We have larger issues coming up,' Senate President Nick Scutari said, specifically naming holes in the state budget that could come from cuts the Republican Congress is looking to make to Medicaid. In the near term, the fight over how the rate relief plan is paid for is a sub-fight in the larger one Republicans are itching to have with Democrats over the Murphy administration's clean energy policies, which relied heavily on decarbonizing the grid by boxing out natural gas and relying on an offshore wind industry that hasn't materialized. Murphy, Scutari and Assembly Speaker Craig Coughlin all acknowledged there is a supply-demand problem facing New Jersey and that the rate relief is only a short-term fix for long-term issues. Notably, when they asked about what to do, they talked about solar, nuclear and, in Murphy's case, offshore wind. Former Senate President Steve Sweeney, who is running for governor, put out a statement urging the state, and by implication his former colleagues still in government, to 'embrace all forms of energy,' including natural gas. Republicans have been saying this for a while, but Bucco said Democrats 'conduct their business in an echo chamber' and are not open to talking. Still, Sweeney is not alone among Democrats. Assemblymember Wayne DeAngelo, the Mercer County Democrat who oversees the chamber's utilities committee, has also talked about the need for gas. It's still an open question if New Jersey will go that route, and that is going to be another main tension as Republicans look to use energy policy and power prices in the general election to elect lawmakers and perhaps even a governor who could undo Murphy's clean energy policies. — Ry Rivard TRUMP FUNDING GATEWAY — The Trump administration is recommending $700 million in the 2026 budget for the Hudson River train tunnel, the $16 billion project to bolster the connection between New York and New Jersey. The funding recommendation by the Federal Transit Administration is a sign that President Donald Trump is no longer attempting to upend the Gateway program, as he did by slow rolling it during his first term. Elements of the tunnel project are already under construction and employing union workers. According to a recent Regional Plan Association report, the Gateway program could generate 'close to $445 billion in economic benefits' in coming decades. — 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. 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 York — Some Long Island residents oppose battery storage, Propel transmission project. — The Times Union takes on biosolids spread on farmland. — Canadian wildfire smoke worsens air quality. — Sen. Chuck Schumer raises concern about summer LI-HEAP benefits. — Trees are under threat from invasive species. What you may have missed TORRES TALKS: Rep. Ritchie Torres is keeping a close eye on the mayor's race as he mulls a run for governor in 2026 and promotes an 'abundance' agenda. And while he remains a steadfast supporter of Andrew Cuomo, he criticized the ex-governor's decision to shutter a nuclear plant during his Albany tenure. While Torres praised Cuomo as an effective governor and 'one of the greatest builders of infrastructure in the 21st century,' there's one major decision he says was a mistake: shutting down the Indian Point nuclear plant, which he said led to more greenhouse gas emissions. 'I feel like there's a growing recognition in the Democratic Party that we undervalued the role of nuclear in decarbonizing,' Torres said. Cuomo defended his decision, pointing to the safety risks of a terrorist attack or earthquake to the plant located near a major population center. 'Do you understand the danger that Indian Point poses? It would be catastrophic if anything happened at Indian Point,' Cuomo told reporters. Cuomo said he supported nuclear power upstate. The governor backed massive subsidies to keep those plants open. Torres said he had a 'bias' toward clean energy, although he didn't completely rule out gas power plants to maintain the reliability of the electric grid. Torres sees permitting as a major barrier for clean energy in New York. Earlier this week, he sent a letter to Hochul, Adams and Trump celebrating a Supreme Court decision limiting federal environmental reviews. 'As an abundance Democrat, there is a presumption against rules and regulations that inhibit the building of new clean energy, affordable housing and infrastructure,' Torres said. — Marie J. French $430M FOR NJ RATE RELIEF — POLITICO's Ry Rivard: New Jersey Gov. Phil Murphy's administration is providing customers with $430 million in electric bill rate relief, a sum that the Democrat and his allies in the Legislature acknowledge is only a short-term solution for rising energy costs. The relief package includes $100 for all 3.9 million residential ratepayers in the state and another $150 for low- and moderate-income ratepayers. SLIMMED-DOWN GAS MEASURE — POLITICO's Marie J. French: Democratic lawmakers in New York are planning to include major changes to a gas transition bill that are aimed at addressing regional concerns and clearing the way for its passage. Planned amendments to the NY HEAT Act, which were obtained by POLITICO and are not yet final, include renaming the bill and allowing more flexibility for gas utilities to opt out of the transition. Limits on gas utilities expanding their service territory and language on a 6 percent affordability goal are also on the chopping block. 'There's still some changes as we speak,' said Democratic Sen. Liz Krueger, who's sponsoring the bill. SENATE MOVES MORE UTILITY BILLS: New York Senate Democrats passed another handful of utility measures aimed at reining in rate increases and expanding customer protections on Thursday. The push reflects mounting frustration with rate hikes, as another utility is expected to file a proposed increase in the coming months and several are pending before the Public Service Commission. The bills join several others on utility regulation the Senate passed in January that haven't moved in the Assembly. Only one from that earlier tranche is headed to the governor's desk — Sen. Michelle Hinchey's and Assemblymember Jonathan Jacobson's measure to limit and standardize estimated billing by utilities. The package slated for passage on Thursday includes Sen. Leroy Comrie's expanded requirement for utilities to notify customers of proposed rate hikes. Currently, utilities are required to publish in local newspapers and send notices in bills. The Department of Public Service also posts on their website. This would require utilities to additionally text or email customers. That's moving in Assembly committees and is sponsored by Assemblymember Zohran Mamdani, who is running for New York City mayor. The Senate also passed a bill allowing the commission to consider non-economic damages when penalizing utilities. Hinchey also shepherded through a measure to change the Public Service Commission by expanding it to eight members with another with consumer advocacy experience. An even number of commissioners raises the theoretical possibility of a tie vote. Her bill also bars utility employees from serving on the commission for two years. Hinchey also has a measure to require more reporting on planned capital expenditures by utilities, including specific details about projects. The rate case process includes substantial information about proposed utility capital spending, which is scrutinized by the DPS and other parties. That bill has already passed the Assembly and will head to the governor's desk. Sen. Shelly Mayer, who has slammed Con Ed's proposed rate hike, also advanced a bill to extend the time period for rate cases from 11 to 14 months. That could alleviate rate compression when utilities are entitled to recover revenues deferred during a lengthy settlement process. Mayer also proposed returning 100 percent of excess returns earned by utilities over their authorized return on equity to ratepayers. Currently, shareholders get to keep a portion while the rest is returned to customers. Policymakers view this as encouraging utilities to be as efficient as possible and preserving benefits for customers. Other bills advanced include notification requirements if customers exceed a certain cost of usage (S8062) and a 24/7 toll-free number to report outages, which utilities already maintain, according to the department (S6200). The package does little to address significant drivers of rate hikes cited by Public Service Commission members and utility officials including investments to maintain and upgrade the systems — in some cases driven by growing electrification supported by state policies — and local property taxes on new and existing infrastructure. Con Ed, the largest taxpayer in New York City, estimates that a third of customer bills go toward paying taxes. 'What we're saying is that we need transparency, we need accountability,' said Senate Majority Leader Andrea Stewart-Cousins. 'Until we get that, until we have the Public Service Commission work on consumers' behalf, not just listening to the utility, I think we'll be at a better point.' 'We're trying to save the planet as well as save access to utilities,' said Stewart-Cousins. Hinchey also noted that gas utilities are investing heavily in their systems, including expanding the system. 'We know a lot of this is also fossil fuel infrastructure,' she said. Mayer said a significant portion of Con Ed's proposed rate hike is improving their existing system, not moving to renewables. 'Obviously they need to upgrade their existing structure, but we're trying to strike a balance here with the investment in renewables at the same time,' she said. Utilities don't build renewable generation, but do have to upgrade their systems to accommodate growing amounts of distributed renewable energy and more electric demand from EVs and building heating. The PSC has also approved billions in transmission projects to support the climate law. Upstate United, a business group, criticized Senate Democrats for failing to acknowledge costs driven by the climate law. The group backs a bill sponsored by Comrie to break out costs from state policies on utility bills. ''While it may be politically convenient to obscure the cost of government mandates buried in a utility bill, what everyday New Yorkers need is a better explanation of the factors driving up the cost of energy supply and delivery. New Yorkers deserve transparency, not finger-pointing,' said Justin Wilcox, Upstate United's executive director. — Marie J. French ATLANTIC SHORES' 'RESET' — Atlantic Shores asked the Board of Public Utilities to terminate the formal project award it received in 2021. The offshore wind farm, a joint venture of Shell and French energy company EDF, was the first in the state to receive all the federal permits necessary to build but for several years it struggled to make its project pencil out, citing supply chain issues and inflation. A petition filed this week with the BPU blames the Trump administration for canceling a necessary permit and asks the state to considered the project canceled. But the company is not giving up on building a wind farm off the New Jersey coast and called the current era a 'reset period' after which it hopes a version of the project can be built. 'This filing marks the closing of a chapter, but not the end for Atlantic Shores,' CEO Joris Veldhoven said in a statement. The project was in trouble before Trump took office and then things got worse. Gov. Phil Murphy's administration decided in February not to provide financial backing to new offshore wind projects. Atlantic Shores had previously said it needed more money to make its project work; by closing that door, Murphy killed the project, a decision even some of the governor's environmental allies have questioned. Atlantic Shores' messaging contrasts with Danish energy giant Orsted's behavior in 2023, which was to abruptly kill two wind farms planned in the state and then try to get out of paying a fee for backing out of one of the projects. Atlantic Shores' arrangement with the state, which predated the one Orsted was fighting over, does not include a penalty for exiting. Indeed, it was inked in an era of exuberance about offshore wind that has proven at very least premature if not unfounded. As Atlantic Shores notes in its filing, every single offshore wind deal between 2019 and 2022 in New Jersey, New York and Massachusetts resulted in projects either being canceled or renegotiated. Even though the offshore wind industry is on shaky ground, Murphy still seems to be confident it will eventually happen. At an unrelated event on Thursday, the governor pointedly talked about the wind industry — where every project ever approved in New Jersey is dead or delayed — in the present tense. 'We have — still, I'm going to use the present tense because we haven't given up — we have the largest offshore wind program in America,' he said. — Ry Rivard REVENGE OF THE COWS: Republican lawmakers and dairy farmers are slamming what they call a 'crazy' idea to cap the number of cows allowed on dairy farms. The proposal, advanced by New York City Democrats and environmental groups, would prohibit new permits for dairy farms with more than 700 cows. 'We're going to force these folks out and force those cows to be relocated to other states,' said Republican state Sen. George Borrello, referring to the measure's potential fallout. Milk is big business in New York, which ranks fifth in the U.S. in production. Dairy is the largest part of the state's agricultural industry too, and the state is supporting new dairy processing facilities. But dairies have also been going out of business over the past decade, facing rising costs and thin margins. The number of cows in the state, meanwhile, hasn't dropped. Lawmakers and environmental groups supporting the bill, including Food and Water Watch and Third Act, say they want to protect family farms and the environment. 'These farms, known as CAFOs, prioritize profit over the well-being of animals and the health of our environment, cramming thousands of animals into confined spaces,' said Democratic Assemblymember Linda Rosenthal, who's sponsoring the bill. CAFO stands for concentrated animal feeding operation. Assemblymember Chris Tague, a Republican from Schoharie, called it the 'most ridiculous bill' he's ever seen. Expanding dairy operations is often the only way for families to keep their operations financially viable, he said. The measure is also a non-starter for key upstate Democratic lawmakers. 'I am disappointed that a bill like this was introduced without consulting anyone involved in the dairy industry,' said Democratic Assemblymember Donna Lupardo, chair of the agriculture committee. 'These hard-working men and women are some of the best stewards of the land I know.' — Marie J. French ALL ELECTRIC EXEMPTION DEBATED: The 'reasonableness' of potential exemptions to New York's requirements barring fossil fuels in most new buildings is still being defined. The compromise on all-electric buildings, passed in 2023, required the Public Service Commission to decide how a utility could determine a building is exempt when 'electric service cannot be reasonably provided by the grid.' This caveat was key to getting utility buy-in and Assembly Democrats to sign off on the measure, but environmental advocates worried whether it would gut the effectiveness of the bill aimed at limiting the expansion of the gas system. Those worries are coming into sharper relief as advocates, utilities and others respond to the Department of Public Service's proposed exemption guidelines, which recommends an exemption if necessary grid upgrades are estimated to take more than 18 months longer than providing traditional gas and electric service. The law's mandate for buildings under seven stories is set to take effect at the beginning of next year. Environmental groups in comments filed Tuesday argue this 18-month exemption is too broad and not fully justified. The Environmental Defense Fund said the commission should instead consider the actual additional time beyond a customer's requested date of interconnection and require developers to use technology to reduce electricity demand that might drive longer timelines. 'Though it is important to allow utilities to maintain grid reliability, the Commission can adopt a reasonableness standard that is narrow in scope while ensuring stable grid capacity,' the group wrote in its comments. Gas-only utilities National Fuel, Corning and Liberty Utilities joined with the New York State Builders Association to say the state should also provide exemptions based on costs. If the cost of electric-only exceeds traditional gas and electric costs, then an exemption should be permitted, they argue. The utilities and builders cite concerns about the affordability and demand for housing. An 18-month delay is also too long, they argue. 'If timeline, cost and uncertainty of building in New York become too great, developers and builders may turn to other states where these issues are not present,' they warn. 'To help avoid these unintended but very real consequences, when determining reasonableness for purposes of the Grid Exemption the Commission should consider all relevant factors where full electrification could render a project infeasible, including cost burdens that would price homes out of the reach of New York households and timing concerns associated with the availability and installation of electric infrastructure and equipment.' The state's joint utilities — Con Edison, National Grid, Central Hudson and NYSEG/RG&E — support the 18-month criteria. They also ask that developers seeking an exemption bear all the costs of required studies. The joint utilities indicate a cost-based exemption would be difficult to implement given variation in costs across different utilities. It would also require evaluating costs of both types of hookups. 'Requiring new service requests to evaluate costs based on both all-electric connections and electric/fossil fuel connections would require more resources, extend project timelines, and increase costs,' the utilities wrote in their comments. There's no timeline for the commission to make a decision, although clarity will be needed before the end of the year. The state's building codes council has also not finalized the new requirements for the coming year. — Marie J. French PSE&G MOVES AHEAD — New Jersey's largest utility is rolling out billing changes aimed at protecting electric customers from worst-case scenarios caused by rising rates. PSE&G now won't shut off service to low-income and other qualified customers by extending existing winter shut-off protections to include summer months (now through the end of September). The company is also suspending reconnection fees. Both ideas were floated last month by Gov. Phil Murphy's office and don't require Board of Public Utilities approval. 'There is now widespread recognition that New Jersey needs more power generation to address the forecasted energy supply-demand imbalance,' PSE&G President Kim Hanemann said in a statement. 'PSE&G is not the cause of the 17 percent rise in electric rates, but we can support our customers by advancing critical solutions. These actions should help relieve a burden to families and communities just as the weather is getting warmer and electricity usage hits its peak. We encourage our customers to reach out to us if they are struggling to pay their bill so we can help them access the solutions available.' PSE&G and other utilities are still waiting for the BPU to take up a broader change that would cushion summer bill spikes by deferring parts of those bills and having customers pay them back throughout the year. The plan resembles existing 'level' billing options that customers can choose to get. All these measures are designed to help take the edge off the new rates that took effect Sunday and are expected to increase the average residential power bill by $25 per month — but more in the summer months for many customers. Republicans have blasted the deferred payment concept, first proposed by the BPU, as a political stunt to help Democrats when they face voters this fall. — Ry Rivard NYISO PUSHES GAS FOR RELIABILITY — POLITICO's Marie J. French: The state's grid operator has escalated its warnings that new renewables aren't coming online fast enough to meet growing energy demand, explicitly backing additional fossil fuel plants to keep the lights on. The New York Independent System Operator has for years warned about shrinking reliability margins — the cushion of available generation to keep ACs humming and factories running. With new economic development projects, data centers and other large loads hooking up to the grid, those warnings have taken on new urgency. 'We must consider all options for investing in the grid to provide for reliability and certainty at the most efficient cost,' wrote NYISO President and CEO Rich Dewey in the annual Power Trends report released Monday.
Politico
27-05-2025
- Automotive
- Politico
Clean car rollback backlash
Presented by Good morning and welcome to a special weekly Tuesday 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. BACKUP PLAN — POLITICO's Camille Von Kaenel: A group of blue states that signed on to California's self-imposed electric vehicle mandate are banding together in the wake of Congress' vote to strip California of the ability to set its own vehicle emissions standards. The governors of New York, New Jersey and other states announced Friday they were joining California to form an 'Affordable Clean Cars Coalition.' In the announcement, the governors blamed the federal government for 'creating needless chaos,' but notably avoided any policy commitments, belying the cold feet several of the states developed this spring over the mandate. 'We will continue collaborating as states and leveraging our longstanding authority under the Clean Air Act, including through state programs that keep communities safe from pollution, create good-paying jobs, increase consumer choice, and help Americans access cleaner and more affordable cars,' the governors said in a joint statement. ICYMI, as our Jordain Carney and Alex Guillen reported, the Senate voted Thursday to nix a California emission standards waiver after Republicans effectively skirted guidance from their own rules-keeper that the Biden-era action did not qualify for reversal using the Congressional Review Act process. The waivers at issue are the gas car ban, the zero-emission trucks rule and a rule requiring diesel trucks to reduce NOx emissions. California is planning to sue. Time's a'wasted: This is the latest move by the Trump administration that effectively negates years of contentious policy discussions that consumed blue state politicians, policymakers, lobbyists and reared their head during the 2023 legislative elections. The bureaucracy is acutely aware of this. Something caught my eye in one of the legal filings from blue states in their lawsuit against Trump's offshore wind halt: The New Jersey Board of Public Utilities said its offshore wind work requires year-round support from a team of approximately eight employees. According to the filing, 'The team spends approximately 30% of its time for half of each year preparing to issue a solicitation for OSW energy generation projects, and, for the remaining half of the year, roughly 40-60% of its time on reviewing developer bids submitted in response to a solicitation.' — Ry Rivard HAPPY TUESDAY 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. What we're watching this week: TUESDAY — Congestion pricing is in court again, and so is the use of presidential power. U.S. District Court Judge Lewis Liman will hold a hearing on motions for preliminary junctions by the MTA to prevent the Trump administration from taking sweeping actions to cut funding to New York, 10 a.m. in Courtroom 15C, 500 Pearl St., New York. — Sens. Kevin Parker and Pete Harckham and Assemblymember Carrie Woerner along with groups supporting the Clean Fuels coalition, 10 a.m., 4th floor lobby, Capitol, Albany. — Acting DEC Commissioner Amanda Lefton appears for a confirmation hearing with the Senate and Environmental Conservation committees, 12:30 p.m., Room 124, Capitol. — The New York State Energy Planning Board meets to talk about gas system planning, 2 p.m., Empire State Plaza, Meeting Room 6, Albany. WEDNESDAY — MTA board and committee meetings begin at 8:30 a.m. — Sen. Pete Harckham and solar advocates hold a rally for rooftop and community solar, including support for the Accelerate Solar for Affordable Power ('ASAP') Act, 11 a.m., Million Dollar Staircase, Capitol Building, Albany. Around New York — E-bike traffic enforcement concerns. — MTA funding plan becomes political talking point. — Some Rochester area voters rejected electric school bus proposals. — New York City lawmakers propose banning new large-scale dairy farms. — ICYMI: LIPA abandoned its search for a new grid operator, with the board of trustees instead voting to extend PSEG's contract. — OPINION: Sen. James Sanders, who just recently sent a representative to a rally to oppose a Con Ed rate hike, supports the utility's spending on grid upgrades (which are paid for by ratepayers) and the Propel NY project. Around New Jersey — New Jersey sinkholes are a reminder of a mining past. What you may have missed NYPA RENEWABLE PIPELINE UPDATE: The New York Power Authority plans to bid three large-scale solar and wind projects totaling 800 megawatts into an upcoming NYSERDA solicitation. NYPA will also submit a 130-megawatt storage project into NYSERDA's upcoming large-scale storage solicitation. 'We continue to add,' said NYPA President and CEO Justin Driscoll during a board meeting last week. He also said NYPA will issue an updated renewable plan with an additional 3,000 megawatts of projects that are still in the 'fatal flaw' due diligence stage. Advocates for an even more aggressive buildout of renewables, Public Power NY, want the authority to move more quickly. — Marie J. French SOLAR INDUSTRY CHALLENGES SUBSIDY CUT: The state's top solar industry group asked the Public Service Commission to reconsider a decision to cut the budget for subsidies as federal threats loom. The New York Solar Energy Industries Association filed a petition for rehearing last week, arguing the commission's decision to redirect $217 million away from distributed solar violated legal notice requirements and impedes progress to achieve the state's climate law. The commission cited growing affordability concerns in reducing the budget for solar, which is on track to meet the state's 10 gigawatt goal under budget. The commission should reconsider 'in light of the significant risk that the federal government will eliminate or phase out federal clean energy tax credits,' the petition states. 'This change in federal policy, precipitated by the November 2024 federal elections, constitutes a clear change in circumstance, creating significant attrition risk for the 3.3-gigawatt pipeline of projects with reserved NY-Sun incentives that are not yet operational.' — Marie J. French NYSERDA HIDES RENEWABLE COST IMPACTS: The administration of a governor who promised a 'new era of transparency' is rolling back years of previous policy to hide the costs of new renewable energy projects. NYSERDA, the state's clean energy agency, refused to provide POLITICO with details of the pricing for 26 new renewable energy projects announced on Wednesday. The authority has previously provided that information for all new renewable awards, including offshore wind projects. The total lack of price information leaves consumers and businesses in the dark about how much they'll pay in the future for these renewables on their utility bills. It thwarts any comparison to previous awards, including those developers canceled after the state rejected their requests for higher payments. NYSERDA spokesperson Tania Allard said in an email the information would only be released once the projects are 'commercially operational.' All 26 of the projects announced are expected to be online by 2029. Twenty-three of the awarded projects previously held NYSERDA contracts, meaning they're likely farther along in the development process. 'NYSERDA is modifying its approach to announcing awarded Tier 1 contracts to better align itself with industry standards and other NYSERDA programs/portfolios and avoid releasing information that does not reflect actual ratepayer costs,' Allard said. 'NYSERDA will release pricing details of awarded projects on the Large-Scale Renewables Open NY database once they are commercially operational.' NYSERDA serves as the central procurement agency for the state's renewable energy goals. The authority contracts with renewable developers, agreeing to pay for the 'renewable energy credits' generated by new solar, wind or hydropower resources. The contracts allow developers to secure financing and move forward with building the projects. NYSERDA doesn't start paying developers until the projects come online. Costs for the RECs are then recovered from utility ratepayers across New York. The 26 awards totaled 2.5 gigawatts of capacity and 5,000 gigawatt hours of annual production. That's enough to power about 670,000 homes, but falls far short of the pace of renewable buildout needed to stay close to meeting New York's 70 percent renewable target three years late. Policymakers have already acknowledged the state won't meet it by the 2030 deadline in New York's climate law. The authority released cost information for awards announced less than six months ago. That slate of projects had a nominal weighted average strike price — essentially, the total revenue from energy prices and the subsidies paid by NYSERDA a developer will earn — of $94.73 per megawatt hour and projected bill impacts of 70 cents per month. NYSERDA released cost information about new offshore wind awards for projects that had canceled their earlier contracts. That showed average bill impacts for the same new energy infrastructure more than doubling on a percentage basis. Even developers might be disappointed by NYSERDA's newfound reticence, since such cost information is indeed hard to find in other markets. 'It's very hard to find [renewable energy contract] pricing in any other market,' said Marguerite Wells, executive director of the Alliance for Clean Energy New York. Wells noted that the bill impacts could change due to attrition. 'You can announce all the prices you want, but if nothing is getting built at that price, you're not learning anything anyway,' she said. The lack of pricing information comes amid rising concern, including from Gov. Kathy Hochul, about the cost of the state's transition to renewables. Previously, New York's energy leaders would herald declining costs for new renewable contracts. Now, it will be impossible for the public to know whether costs are coming down until the projects are built. Business groups and ratepayer advocates have been pushing for more transparency, not less, about the state's climate law programs. The Public Service Commission hasn't released an update on the costs of climate law policies — a report that was supposed to be annual — since the inaugural one in July 2023. Given lawmakers' scrutiny of economic development programs, 'you'd think they would be demanding to know what our renewable energy investments cost,' said Ken Pokalsky of The Business Council of New York State. 'That should be a major concern,' Pokalsky said about the lack of cost information. 'Lay the numbers on the table, so we know and we can make informed decisions about these programs.' NYSERDA's new policy also raises questions about the database for renewable contracts, which includes cost information for projects that have been awarded but not yet built from previous rounds. The authority last year stopped announcing details of tentative awards until contracts were signed by developers, but this is the first time NYSERDA has withheld cost information once awards have been finalized. — Marie J. French BPU TALKS BUT DOESN'T ACT — The New Jersey Board of Public Utilities, as previously reported, didn't take up any measures to mitigate upcoming electric rate increases. Because of procedural issues, the board is unlikely to take any action on the plans they requested from utilities to cushion the rate increases until next month, after the increases have begun on June 1. 'We are still evaluating all possible actions,' BPU President Christine Guhl-Sadovy said during a board meeting last week. She also noted the subsidies for nuclear power plants are coming off ratepayer bills in June. — Ry Rivard CAUCUS PACKAGING COST CONCERNS — POLITICO's Marie J. French: Some lawmakers are heeding the affordability drumbeat from business groups opposed to an aggressive waste reduction measure. A few Democratic lawmakers, mainly members of the influential Black, Puerto Rican, Hispanic and Asian Legislative Caucus, have signed on in recent weeks to competing 'extended producer responsibility' legislation backed by the plastics industry and other business interests. UPSTATE GROUP QUESTIONS TRANSMISSION COSTS — POLITICO's Marie J. French: A Long Island transmission upgrade — originally approved to unlock more offshore wind — has escaped the federal wrecking ball targeting such projects. But the upgrade developers' disavowal of offshore wind has drawn cost concerns from an upstate business group. That's because the new transmission lines will be paid for by ratepayers statewide based on their electricity use, instead of those who benefit most paying a greater share. ANTI-PLASTICS AD BUY: Proponents of a measure to limit packaging and plastic waste are launching a five-figure digital ad buy as the legislation session winds down. Beyond Plastics announced the ads would target people in Albany as well as key Assembly and Senate districts. The ads link plastics to reproductive health issues and highlight potential savings for local governments from reduced waste disposal costs. The Packaging Reduction and Recycling Infrastructure Act passed the Senate last year but didn't come to a vote in the Assembly. It's a top priority for the chairs of the environmental conservation committees in both chambers. 'We need this bill to come to the floor in both houses for a vote,' said Judith Enck, president of Beyond Plastics and former U.S. Environmental Protection Agency regional administrator. 'Plastic polluters should be on the hook for the mess they're making.' The plastics and chemical industry, along with business groups, oppose the bill. They've raised concerns about costs and feasibility, warning that consumers might not be able to get food packaged the way they're currently used to. — Marie J. French LET'S MAKE AN ENERGY DEAL: Gov. Kathy Hochul may have poked a hole in New York's longstanding pipeline blockade. The governor celebrated the revival of one critically endangered energy resource as President Donald Trump allowed the Empire Wind 1 offshore wind project to restart construction, POLITICO Pro reported. It faced uncertainty after the White House ordered the company to stop work on the fully permitted project last month. Hochul also alluded obliquely to working with the federal government and private companies on 'new energy projects that meet the legal requirements under New York law.' The governor told Newsday's The Point that she indicated to Trump she was willing to approve pipelines if they met state and federal requirements. Interior Secretary Doug Burgum hours later praised Hochul in a post on X for her openness to new gas infrastructure. 'I am encouraged by Governor Hochul's comments about her willingness to move forward on critical pipeline capacity,' he wrote. 'Americans who live in New York and New England would see significant economic benefits and lower utility costs from increased access to reliable, affordable, clean American natural gas.' There was no explicit offshore wind for pipeline tradeoff, according to Hochul's office. 'No deal was reached on any gas pipeline,' said Hochul spokesperson Paul DeMichele. Still, the remarks raised alarm for some environmental advocates who want Hochul to keep the door closed to new gas pipelines, which they argue undermine the state's climate law. 'If she goes down the path of exploring or, God forbid, approving pipelines, she should know that New Yorkers will make her life miserable until she's compelled to do the right thing,' said Laura Shindell, New York director at Food and Water Watch. While New York's anti-fracking movement hasn't been as active in recent years, advocates spent years hounding former Gov. Andrew Cuomo at nearly every public event to block hydraulic fracturing and pipelines. Trump has repeatedly raised the idea of building a pipeline through New York, including reviving the Constitution Pipeline. Williams Co. dropped plans for that project in 2020, years after New York first denied a permit because of water quality concerns. There are no pending new interstate pipeline applications in New York state. Hochul last year approved a project to increase the amount of natural gas flowing along an existing pipeline. State regulators said there was a reliability need for the additional supply. Business leaders support more access to natural gas. 'We need more natural gas, and it should be available to businesses that want to expand,' said Matt Cohen, president and CEO of the Long Island Association. Some environmental advocates — basking in the glow of a rare offshore wind victory — shrugged off the pipeline issue, given the likelihood of staunch public opposition, the yearslong process and legal requirements in New York. 'We knew when Trump was elected that he was 'drill baby drill,'' said Adrienne Esposito, executive director of Citizens Campaign for the Environment. 'We know he thinks he's the greatest dealmaker since sliced bread. If or when there's something proposed, it will be reviewed — and gas pipelines take years to permit.' Environmental advocates, union leaders and other supporters hailed the restart of the Empire Wind project as a major victory for the governor and New York's economy. It took an all-hands effort including Long Island Republicans, business groups, labor unions and even New York City Mayor Eric Adams to salvage the project. Hochul was on the phone with Trump three times over the weekend, pushing for it to restart. Adams sought to take some credit for the victory as well, citing a May 9 meeting with the president in D.C. Adams, a registered Democrat, is running for reelection as an independent after losing support from voters wary of his hands-off attitude toward Trump. 'They can say 'I did it.' I want to say 'New York, got it,'' Adams said. 'So if she wants to say it was because she was strong and fought for it, 'Hey, great, governor!' All I know is that when I sat down in the Oval Office, I shared with him how important this project was and what it meant. I know the letters that we sent, I know the conversations we had behind the scenes. I know that as long as you continue to talk to someone and reason with them, sometimes you win, sometimes you won't.' — Marie J. French HOCHUL'S WIND WIN — POLITICO's Marie J. French: President Donald Trump's administration ended weeks of uncertainty about the fate of a New York offshore wind project, allowing construction to resume after the developer threatened to pull the plug. Gov. Kathy Hochul announced that Trump agreed to allow Equinor's Empire Wind to resume construction after her intense lobbying effort for the project. The Norwegian energy giant days earlier indicated it would soon cancel the investment altogether if it couldn't continue work. 'I knew this critical project needed to move forward and have spent weeks pushing the federal government to rescind the stop work order to allow the workers to return and ensure this important source of renewable power could come to fruition,' Hochul said in a statement. BPU RATE RELIEF DELAY — The New Jersey Board of Public Utilities is missing a self-imposed deadline to provide rate relief plans to state power customers. The board, which meets Wednesday for its final scheduled board meeting in May, is not planning to take up electric utilities' plans to help cushion the blow of rate increases that kick in on June 1. In April, the board asked companies for ideas about how to spread out the cost of the $25 per month rate hikes, especially given high summer use that will cause even larger-than-average bill spikes. In April, one of the agency's top staffers recommended that the board implement the proposals before the start of the 2026 energy year on June 1. The board seems almost certain to miss that deadline. That could feed into the perceptions that came up during a recent Assembly Budget Committee hearing for the BPU that Gov. Phil Murphy's administration did not do enough to prepare for energy price hikes that have become a major political issue. The delay appears to be at least partially procedural. The utilities submitted their plans earlier this month. PSE&G, the state's largest utility, submitted a plan then updated it last week in light of some fresh comments by Murphy's office about what the governor would like to see utilities do. Because of the updated filing, the board needs more time to review. PSE&G's plan wouldn't have taken effect until July 1 anyway. PSE&G's plan is to offer temporary bill credits to customers in July, August and September and then collect back the credited amount from October through May 2026. When the board first asked for the plans, at its April 23 meeting, the intention of agency staff was to have the plans in place before June 1, though board member Zenon Christodoulou acknowledged there 'are a lot of details that need to be worked out in a very short period of time.' Democratic lawmakers, including Speaker Craig Coughlin, have been keeping an eye on the options that utilities come up with, while Republicans have accused the Murphy administration of trying to hide the higher rates ahead of the fall elections. — Ry Rivard
Politico
03-03-2025
- Business
- Politico
Energy master plans on the move
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. Quick Fix BPU GETS READY FOR EMP — The New Jersey Board of Public Utilities is preparing to release a draft of the Murphy administration's much-anticipated energy master plan, the key document meant to guide Gov. Phil Murphy's energy policies. The plan update has been repeatedly delayed: The first hearings on what was being called the 2022 energy master plan were expected to begin in 2023, then the plan was rebranded as the 2024 master plan and, of course, it's now March 2025. But the BPU put out a notice on Friday that it would hold a public meeting about the draft plan on March 13. 'The 2024 EMP will serve as a whole-of-government progress report on the goals and strategies in the 2019 EMP, outline the changing landscape of State and federal support for climate action, and determine the basis for the development of actionable next steps to reduce GHG emissions and maximize clean energy uptake economy-wide,' the BPU notice said. 'The 2024 EMP will be a public-facing document that incorporates progress information acquired through inter-agency collaboration and stakeholder feedback to build upon the 2019 EMP and will help New Jersey reach its goal of 100% clean energy by 2035, amongst other key clean energy and climate goals and benchmarks including health impact analyses and data center growth assessments.' In January, BPU Commissioner Zenon Christodoulou publicly worried about a consultant hired to do the state's energy master plan. — Ry Rivard GAS BAN IN NEW BUILDINGS ADVANCES — POLITICO's Marie J. French: A state council forged ahead Friday with a new building and energy code proposal that includes a ban on fossil fuel equipment in most new buildings. The state Fire Prevention and Building Code Council approved releasing the draft codes for public comment at its meeting Friday morning. The proposal includes provisions requiring that, starting next year, most smaller new buildings forgo fossil fuel appliances in favor of electric heat pumps, hot water heaters and stoves. Gov. Kathy Hochul heralded the new requirements when they were passed by lawmakers in 2023 as part of the budget. The law bans fossil fuel combustion in most new buildings under seven stories starting in 2026, with larger buildings covered starting in 2029. Environmental advocates had raised concerns the building code council was slow-walking the requirements after a canceled meeting last year. The proposed new codes do not delay the ban on fossil fuels, but they don't include requirements supported by environmentalists to require EV charging infrastructure, energy storage and solar at new buildings. — The Department of Public Service staff filed a white paper the day before the council's meeting on how to implement an exemption included at the behest of Assembly Democrats for buildings if the electric utility says there isn't enough capacity to support all-electric new construction. 'A secretary's notice will be sent out shortly and the SAPA comment period will start soon,' DPS spokesperson Jim Denn said in a statement. 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. What we're watching this week: MONDAY — The New Jersey Senate Legislative Oversight Committee will receive testimony from invited guests 'to discuss preparing New Jersey for the increasing energy demands of artificial intelligence,' 10 a.m. — The New York State Energy Planning Board meets to finalize the scope for the upcoming and long overdue state energy plan, 2 p.m., NYS Department of Environmental Conservation, 625 Broadway, Public Assembly Room 129 A & B, Albany. TUESDAY — The Department of Public Service holds a technical and procedural conference on Con Ed's proposed gas rate hike, 10:30 a.m., virtual. — The Department of Public Service holds more hearings on the transmission siting regulations under the RAPID Act, 1 and 5 p.m. in Buffalo and 6 p.m. in Watertown. WEDNESDAY — The Department of Public Service holds more hearings on the transmission siting regulations under the RAPID Act, 1 and 5 p.m. in Rochester and 5 p.m. in Plattsburgh. Around New York — STORAGE ON ICE: The town of Brookhaven won't advance permitting for any additional battery storage until the state releases new fire safety rules, the town's supervisor told Newsday. Two have already entered construction and will adhere to the new codes. The town of Hempstead approved a moratorium, which the town's attorney said would likely face a legal challenge. — Hochul hasn't put forward any plan to deal with title insurance issues for state land acquisition, despite a vague promise in her State of the State policy agenda. — Deal reached with auto dealer who cut down vegetation on property bordering creek feeding Onondaga Lake without required permits. — Despite a complete lack of any plans or proposals to build them, the Buffalo Common Council is considering a resolution against wind turbines in Lake Erie. — New York City eyes warehouse regulations. Around New Jersey — A dispute over a trash transfer station and pickup delays in Lakewood. — Fire risks examined. What you may have missed CONGRESSMEMBERS CHALLENGE CLEAN CAR RULES: A bipartisan group of New York's federal delegation is pushing Gov. Kathy Hochul to reconsider the state's implementation of rules aimed at boosting EV sales. They warn that the rules — which New York lawmakers passed into law and are aligned with California's clean car regulations that have an imperiled federal waiver — threaten consumers and auto dealers. 'Many New Yorkers, especially those in rural and underserved areas, will be left without affordable options if the supply of internal combustion engine (ICE) and hybrid vehicles diminishes as the mandate progresses,' warns the letter signed by Republican Reps. Nick Langworthy, Claudia Tenney, Nicole Malliotakis, Mike Lawler and Nick LaLota, and Democratic Reps. Tim Kennedy, John Mannion and Joe Morelle. They want Hochul to slow down implementation of the EV sales requirements. The letter contains claims that the Department of Environmental Conservation has declared 'misleading,' including that dealers will be required to sell one EV for every two gas cars. New York's rules (and California's) place a requirement on manufacturers, not dealerships, to sell increasing amounts of electric vehicles — starting with 35 percent of sales for model year 2026 and up to 100 percent by 2035. Manufacturers can purchase credits from other carmakers that sold more EVs to comply with the requirements, according to DEC. But dealers have raised concerns that manufacturers will stop sending them gas cars unless they sell enough EVs to meet the mandates, even if consumers aren't interested. DEC sent a letter to car manufacturers earlier this month seeking to reassure them, citing federal uncertainty. The department emphasized that automakers would have three years before the agency would require companies to make up any deficits from model year 2026. 'A manufacturer will not need to resolve a 2026 MY deficit until the conclusion of the 2029 MY,' wrote Tom Berkman, DEC's deputy commissioner and general counsel. Berkman said the agency is committed to work with carmakers to 'ease any compliance burdens' including exercising enforcement discretion and working with California and other states 'to counter any harmful impacts of the current federal administration on New York state.' Berkman indicates dealers have raised concerns about Trump's policies including tariffs making it more difficult to meet the EV requirements. Interim DEC Commissioner Sean Mahar assured lawmakers last month that the department would be flexible on the California-aligned rules for trucks and heavy-duty vehicles as well. — Marie J. French NYISO: NOT IT! — The independent operator of New York's electric grid is preparing contingency plans if tariffs on imports from Canada go into effect and impact its operations. But the official stance of the organization responsible for keeping the lights on is that the tariffs don't apply to electricity — and if they do, it's not their problem. 'The duties do not appear to apply to Canadian electricity and, if they are, the [New York Independent System Operator] is not the responsible party to implement the tariffs or to remit payments to the U.S. government,' the NYISO said in a statement on its website earlier this week. Nevertheless, the NYISO plans to file plans today for how to implement and collect a tariff on electricity imports with federal regulators as they continue to seek clarity. President Donald Trump has delayed 25 percent tariffs on Canadian and Mexican imports — 10 percent on energy — until at least March 4, but he's caused some confusion and signaled another potential delay. 'NYISO will not implement its proposed tariff revisions unless relevant federal authorities decide that the NYISO must pay duties on Canadian electricity,' the grid operator stated. (NYISO's tariff governs its operation of the grid and energy markets. Changes need approval from the Federal Energy Regulatory Commission. Confusing, we know.) Energy experts expect tariffs will have an upward pressure on utility bills due to rising material costs on the distribution side. Tariffs on electricity imports would also impact New Yorkers' bills, as the state imports from Canada and relies on the neighboring grids to ensure reliability. — Marie J. French MUSK FACTOR LOOMS IN DIRECT SALES FIGHTS — POLITICO's Marie J. French: Elon Musk is taking Washington by storm, but in statehouses controlled by Democrats on both coasts, his lobbyists are facing a frigid welcome. Tesla's ability to sell electric vehicles directly to consumers remains restricted in several states where the deeply entrenched franchise dealership model prevails. Musk's company has lobbied to be allowed to set up its own sales locations in those states over the last few years — with only limited success. WHERE DOES THE WIND BLOW? HOCHUL ADMIN DEMANDS PROOF: Gov. Kathy Hochul's administration wants the owner of the largest fossil fuel plant in New York City to justify an offshore wind transmission line the company says is key to transitioning to renewables. The Department of Public Service filed a 'motion to compel' in the permitting process for the Queensboro Renewable Express project on Wednesday. The motion seeks to force Queensboro Development to provide information about what offshore wind projects the transmission project would deliver energy from. 'When an applicant for a certificate proposes to transmit power from a specific source, the applicant provides the locations and details of interconnecting generators,' the motion states. The Public Service Commission must have this information to make a finding of need and other determinations required to issue a permit under Article 7, the department argues. It's admittedly an obscure filing. But it sets the stage for Hochul's utility regulator to move to dismiss or delay the permitting process for the Queensboro project, which doesn't have a deal with an offshore wind project to supply power. Queensboro Development is a subsidiary of Ravenswood owner Rise Light and Power. The transmission line to deliver offshore wind is one piece of a sweeping, multi-phase plan to transition New York City's largest fossil fuel power plant as New York seeks to achieve its climate goals. The company sought approval for the project in 2022, when they filed an Article 7 application for 18.5 miles of transmission in New York waters to an interconnection point at the power plant in Queens. The project could bring 2.6 gigawatts of offshore wind into New York City. The transmission line proposal and shutting down some fossil fuel turbines at the Ravenswood site were part of an offshore wind project that almost secured a NYSERDA contract before three large tentative contracts were canceled in April 2024. Rise owns a stake in Attentive Energy One, an offshore wind project also backed by Total Energies and Corio Generation. The project withdrew from the latest NYSERDA offshore wind solicitation before finalizing a bid and its future is uncertain. Queensboro argued information about where the energy for the line would come from was not relevant. 'There will be commercial agreements in place prior to the commencement of construction,' the company wrote in response to the department's questions. The company pointed to the PSC approval for the Champlain Hudson Power Express before it had a state contract, but DPS staff shot back that Canadian hydropower was always the expected source of energy on the line. The project lacked an offtake agreement to finance the line for years, however, until it secured a NYSERDA contract under Hochul. But the prospect of substantial amounts of new offshore wind coming online in the next several years, beyond projects that already have their own plans for hooking into the grid, are dimming by the day. Trump has expressed open hostility to offshore wind and ordered a review of permitting that may even ensnare an onshore transmission project aimed at allowing more offshore wind on Long Island. Still, project backers say the PSC should still review the transmission line's plan. 'We urge the Commission to continue its crucial work reviewing projects like this one and — when the merits of the project justify it — issue permits so that they can proceed,' wrote Robert Fruedenberg, vice president of the Regional Plan Association's energy and environmental programs, in a comment submitted Wednesday to the department. 'Any delay could signal an erosion of the State's support for renewable energy, indicate an abandonment of its leadership role, and threaten its ability to meet climate targets.' Another backer of the project, former New York City Council member Costa Constantinides, told POLITICO he hopes Hochul sees the benefit of the transmission line. 'I think this governor is the climate governor,' he said. 'The governor herself believes that New York State needs to do its part so I have faith in her that she wants to move forward.' A spokesperson for Rise declined to comment. — Marie J. French ICYMI: CONGESTION TROLLING — POLITICO's Ry Rivard: Call it congestion trolling. Gov. Kathy Hochul flew down from Albany on Wednesday for an MTA board meeting to continue her attack on President Donald Trump's move to kill the Manhattan toll program. During her noon appearance in Midtown, the governor held up and flipped through a presentation her staff made for Trump as if she were at the head of an elementary school classroom instead of the MTA board table. ILA DEAL: Dockworkers ratified a contract with the shipping industry, said the union that represents tens of thousands of East and Gulf coast longshore workers. The approval, which was expected, came after a brief pre-election strike that won the union huge wage increases and weeks after reaching a deal about the use of technology at ports. Harold Daggett, the head of the International Longshoremen's Association, continued to praise President Donald Trump's role in resolving the disputes that threatened to upend the economy. In a social media post, Trump congratulated the union and thanked them for their 'overwhelming support in the Presidential Election.' He added, 'Slowing down automation, just a little bit, is an OK thing to do!!!' The shipping industry had already ratified the contract and it's expected that the new agreement will be signed the week of March 10 and go into effect after that. — Ry Rivard NJ TRANSIT GETS MONEY BUT SO DOES SURPLUS — The largest new spending in Gov. Phil Murphy's budget proposal, unveiled on Tuesday, is $815 million to fill the long-anticipated hole at NJ Transit. In the current budget year, which began last summer, the governor levied a 'corporate transit fee' on the state's largest businesses to raise money for the transit agency, but the governor is planning to use the $1 billion being collected this year to pad the surplus. The New Jersey Business and Industry Association, which represents businesses who pay the tax, praised the proposed budget (for FY '26) for planning to spend the money collected for transit on transit, but questioned the use of the $1 billion being collected in the current budget year (FY '25). In a statement, industry association CEO Michele Siekerka said: '$1 billion collected from our largest job creators last year still remains in surplus and therefore open for purposes other than NJ Transit. Our business community deserves clarity on the use of that money as it was intended for NJ Transit.' On X, Colleen Wilson wonders what happened to Senate budget committee chair Paul Sarlo's pledge last year that 'every dollar' from the fee would go to NJ Transit. State lawmakers, who are already questioning some of the $1.2 billion in tax and fee increases Murphy proposed, might see the transit revenue as a tempting pot of money to tap for their own priorities, but a senior Murphy administration official said that corporate transit funds would go to NJ Transit and would not be considered negotiable with the Legislature. Alex Ambrose, a policy analyst at New Jersey Policy Perspective, said the language dedicating money from the corporate fee to transit 'needs to be stronger' to avoid 'raids,' but her group does not have a problem with the way the money is being spent now. Murphy also mentioned clean energy — but not offshore wind, which was a prominent feature of previous major speeches but is now in a stupor, with every wind project approved by the state dead or delayed in some way. Instead, he singled out growth in the state's solar industry and also highlighted hundreds of millions of dollars raised by the Regional Greenhouse Gas Initiative. — Ry Rivard ICYMI: NEW DEC CHIEF NOMINATED: Hochul has officially nominated Amanda Lefton as commissioner of the Department of Environmental Conservation. Lefton works for an offshore wind developer and has a long history in Albany. She was also with the Biden administration as the head of the Bureau of Ocean Energy Management, which oversees offshore wind permitting among other duties. Lefton's expected nomination was first reported by POLITICO last month. If confirmed by the Senate, she'll replace interim DEC Commissioner Sean Mahar, who took the helm after Basil Seggos departed last year. Hochul's choice drew praise from environmental groups, including the New York League of Conservation Voters and Environmental Advocates NY. 'Governor Hochul made an excellent choice in nominating my friend,' said Julie Tighe, president of NYLCV. 'Amanda's time as director of BOEM — during which she helped usher in a new era for offshore wind energy — combined with her prior work in the state government, private and non-profit sectors makes her well suited to help New York take bold climate action and protect our air, water and open space.' State Sen. Pete Harckham, who chairs the Environmental Conservation Committee, said he looked forward to the vetting process. The Senate has not yet set a timeline to consider Lefton's nomination. Hochul on Monday also announced the nomination of two acting agency heads to permanent posts. She put forward Denise Miranda as the commissioner of the State Division of Human Rights and Willow Baer as commissioner of the State Office for People With Developmental Disabilities. — Marie J. French BUDGET DECARBONIZATION PUSH: A coalition backed by environmental groups, labor unions and industry stakeholders is pushing for Gov. Kathy Hochul and lawmakers to fund $200 million in decarbonization projects on college campuses and in an upstate city. The Upgrade NY campaign, which includes the New York League of Conservation Voters, the Building Decarbonization Coalition and the New York State AFL-CIO, sent a letter to Hochul last week laying out its request. The groups have a specific list of 'thermal energy network' projects they want the state to fund. 'These emissions-free infrastructure projects connect multiple buildings using an underground network of water-filled pipes and can scale up to serve entire neighborhoods and multi-building campuses,' the letter says. The money could come from Hochul's proposed $1 billion for climate mitigation projects, although the governor's budget plans indicate that money could take five years to spend. The Upgrade NY campaign wants $68 million to support the University at Buffalo campus in decarbonizing by building an emissions-free heating and cooling network on the university's South campus. The SUNY school was recently awarded $12 million in environmental bond act funding. Those funds are earmarked for a geothermal well field under a parking lot and heat pump equipment at a building slated to undergo a gut renovation. Eventually, with more funding, other buildings would be connected to the system as they're renovated. 'We have to bring those on as money becomes available, and in a phased-in way that limits disruption,' said Ryan McPherson, the university's chief sustainability officer. McPherson said the university is exploring all its options for fully funding its long-term decarbonization plan. He said it's a positive sign that Hochul allocated $100 million for SUNY and $50 million for CUNY from the bond act to fund campus decarbonization. 'This is the first time that I have seen designated funding for decarbonization work across the SUNY campuses, and I think that's the really hopeful thing, because you can't just cannibalize the deferred maintenance money,' McPherson said. The Upgrade NY coalition's other funding asks are $50 million for a thermal network at SUNY Purchase, $55 million for a geothermal system at University at Albany on its downtown campus, $19 million for Jamestown's Board of Public Utilities for a thermal loop utilizing heat from waste water, $5 million for geothermal energy at Stony Brook University's campus libraries and $3 million for the SUNY headquarters. Even with the governor's proposed $1 billion, the investment needed to reduce building emissions is enormous, said Lisa Dix, New York director for the Building Decarbonization Coalition. 'We need a lot more, which is why we need cap and invest,' Dix said. Hochul punted on regulations to implement the economy-wide cap-and-trade program she previously endorsed, delaying their release and any potential revenues and costs. 'It is a delay, and I hope that she continues to stay on track, that the regulations get completed and that we look at first thing, first stop next year, program funding,' Dix said. — Marie J. French CALIFORNIA FOLLOWS — POLITICO's Blanca Begert: A bill that would require major oil companies to pay fees to cover climate damages based on their past emissions was reintroduced in California on Friday. California Sen. Caroline Menjivar and Assemblymember Dawn Addis introduced the Make Polluters Pay Climate Superfund Act in both houses of the Legislature.
Politico
24-02-2025
- Business
- Politico
New head looks to keep Gateway on track
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. Quick Fix NEW GATEWAY HEAD LOOKS TO STAY ON TRACK — Thomas Prendergast, the new head of the Gateway Development Commission, is looking to keep one of the nation's largest public works projects on track. Gateway — the bi-state agency building $16 billion train tunnels between New York and New Jersey — is getting its expenses reimbursed by the federal government and there aren't signs it's in the crosshairs of the Trump administration's cost-cutting moves. Prendergast is a systems engineer by training and takes over a project that is advancing in separate pieces, with parts of the project advancing on both sides of the Hudson River, all leading to a pair of train tunnels that will boost the connection between the two states and, in turn, the Northeast. A former head of the New York MTA, Prendergast views transportation as something that traditionally has bipartisan support. 'Transportation, by nature, has been bipartisan my entire career, and whenever I went down to Washington, no matter where I was, we saw that bipartisan support, so I'm confident that it will still be there,' he said. 'It's important for the economy. It's important for the people that live in those regions to be able to not only get to work, but to do what they want to do in terms of living.' Of course, there are exceptions even for the very project he's working on: Republican Gov. Chris Christie killed a previous version of the project and President Donald Trump turned the tunnels into a bit of a grudge match. Prendergast said he's monitoring what is happening in Washington. 'Am I aware of the fact that there's a new administration in place and we need to make sure that the justifications that we have used in the past to be able to support the project are on par with what the current administration is?' he said. 'So to be aware of what the current administration is and its feelings about the project, it goes without saying I have to be aware of that.' The project is meant to provide a second set of tunnels connecting Manhattan to the mainland. An existing set of tunnels is over a century old and showing their age. When the new tunnels are built and the old ones rehabbed, there will be four tracks in and out of Manhattan, allowing more people to come and go more easily. — Ry Rivard CONGESTION PRICING FIGHT: New York Gov. Kathy Hochul defended her state's congestion pricing program in New York City on Sunday, reaffirming her commitment to legally challenge President Donald Trump's recent move to strike the program's federal approval, POLITICO's Amanda Friedman reports. Trump met with Hochul for more than an hour on Friday to discuss the Manhattan toll program, POLITICO's Nick Reisman reports. The Democratic governor also spoke with the president about immigration and energy policies during the Oval Office meeting, a spokesperson for the governor confirmed Saturday. Meanwhile, the program remains alive. Though Trump said congestion pricing is dead, his administration says the toll in Manhattan is still alive for another month. To allow for an 'orderly cessation,' the Federal Highway Administration said late last week that the tolling program must stop collecting tolls by March 21, according to a letter obtained Friday by POLITICO's 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. What we're watching: TUESDAY— New Jersey Gov. Phil Murphy gives his annual budget address, 3 p.m. — The New York Senate Energy and Telecommunications Committee has NYISO's Kevin Lanahan appear and take questions from lawmakers, 11:30 a.m., Room 124, Capitol Building, Albany. — The Department of Public Service holds more hearings on regulations to implement the 'RAPID Act,' 1 and 5 p.m. at Stony Brook University and Broome County Public Library. — The International Longshoremen's Association is expected to vote on the contract proposal that ended a strike last fall. WEDNESDAY— The Department of Public Service holds more hearings on regulations to implement the 'RAPID Act,' 1 and 6 p.m. Nassau County Legislature. THURSDAY— The Department of Public Service holds more hearings on regulations to implement the 'RAPID Act,' 1 and 6 p.m., NYS Department of Public Service, New York City, and Town of Poughkeepsie Town Hall. FRIDAY— The state's Fire Prevention and Building Code Council meets to discuss changes to the rules for new construction to comply with the state's ban on fossil fuel combustion for some new buildings starting next year, 10 a.m., various locations and online. Around New Jersey — A Camden metal recycler blames battery for a blaze that spurred scores of evacuations. — A bill to protect workers from heat is moving. What you may have missed FOES BEYOND TOLLS — POLITICO's Ry Rivard and Erica Orden: New York's fight to save a Manhattan toll plan sets up a court battle between the Trump administration and one of the president's major legal foes, Roberta Kaplan. Perhaps no attorney bedeviled President Donald Trump in his many legal cases more than Kaplan, who was previously best known for winning the Supreme Court case forcing the federal government to recognize same-sex marriage. Kaplan represents E. Jean Carroll, who won multimillion-dollar civil judgments from a pair of juries after they found Trump liable for sexually abusing and defaming her. He continues to assert his innocence and contest the awards. Kaplan is also counsel for the New York Metropolitan Transportation Authority in its bid to save congestion pricing from Trump's attempt to kill it. The MTA hired Kaplan long before Trump was reelected and she helped the transit agency beat back a series of legal challenges to the tolls even before they took effect in January. NJLCV BACKS SHERRILL — POLITICO's Daniel Han: Rep. Mikie Sherrill, a Democrat running for governor, said Wednesday that she supports Gov. Phil Murphy's clean energy goal for the state by 2035 — suggesting a continuation of one of Murphy's marquee environmental initiatives. EPA UNFREEZES SOME CLIMATE MONEY — POLITICO's E&E's Jean Chemnick: EPA has unfrozen nearly all of its climate grants. As of early Thursday afternoon, the Greenhouse Gas Reduction Fund was the only exception. Awardees of other EPA grant programs under the 2022 climate law found Tuesday and Wednesday that they could access the federal government's portal to receive funds, several told POLITICO'S E&E News. The same was true for recipients of an infrastructure law grant program that helps school districts buy clean school buses. Grantees were granted anonymity to speak out of fear of reprisals. All those programs had been frozen — with one brief interruption — since Jan. 28. EPA said the pause would allow for a 'review' of the programs. CORPS PULLS BACK PERMITTING LIST — POLITICO's Annie Snider: The Army Corps of Engineers is revising a list of more than 600 energy projects that could get fast-tracked permitting under President Donald Trump's declaration of an energy emergency. The Corps, which issues Clean Water Act permits for projects that impact wetlands, posted a list of projects to its permitting dashboard last week tagged with the president's executive order as the emergency 'event' that would qualify them for expedited permitting. OFFSHORE WIND HOPES PERSIST: New York isn't giving up on offshore wind as a potential industrial revival for the Hudson River. The state awarded a small amount to the Orange County Industrial Development Authority to advance the potential for the aging Roseton power plant site to be marketed to companies — with a focus on 'targeting offshore wind supply chain companies.' The $500,000 award is from Gov. Kathy Hochul's FAST NY fund, which pays for utility upgrades and other improvements to make sites more 'shovel ready' as local officials seek to attract companies. 'The site provides unique assets, including direct access to existing power transmission, rail, heavy infrastructure, and existing maritime infrastructure with direct access to the Hudson River,' Hochul's announcement states. NYSERDA previously awarded another Orange County group funding to study the potential to reuse the site of the existing Roseton and Danskammer fossil fuel plants in the Newburgh area. The latest Empire State Development funding will focus on 'unused acreage' at the Roseton facility, ESD spokesperson Matt Gorton told POLITICO. 'There's some thought that, given the location, there may be some synergistic uses for the location's unused portion,' he said. The money will help fund an environmental review, plus engineering and site design. The Port of Albany, meanwhile, is reconsidering its offshore wind focus for the Beacon Island site that was supposed to host a massive tower manufacturing facility for the industry. Hochul awarded nearly $19 million to the port to continue investing in the unused, 85-acre site where trees and vegetation were cleared to make way for foundations. Hochul's administration is still sitting on her much-heralded $500 million for the offshore wind supply chain that was appropriated in 2022. Some of that could have gone to a GE blade manufacturing facility in the Albany area — if that deal hadn't collapsed along with three potential offshore wind projects. With NYSERDA delaying its latest round of awards, the state's offshore wind hopes are in dire straits. Federal funds and approvals for wind-related projects are also in peril. — Marie J. French
Politico
18-02-2025
- Politics
- Politico
EPA Region 2 head arrives
Good morning and welcome to the weekly Tuesday 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. QUICK FIX EPA REGION 2 HEAD ARRIVES: Mike Martucci, a former New York state lawmaker from the Hudson Valley, is energized about his new job as head of the EPA regional office that includes New York and New Jersey and effusively praised his agency's career civil servants in a Valentine's Day interview. But he doesn't know how many of them he'll be overseeing after the Trump administration finishes its efforts to make a leaner federal workforce. In an interview on Friday morning, hours before the Trump administration announced layoffs across the agency, Martucci was praising the region's career staff who he has been meeting during his first two weeks or so on the job. 'I found a group of incredible professionals, scientists, engineers, attorneys — folks that understand their work so well at the highest levels,' he said. 'And it's really just a privilege to be working with them, learning about the issues that the entire region faces and how we address those issues together, because I intend on approaching this job cooperatively with our career partners. They are the subject matter experts.' Later that day, the EPA office in Washington said it had fired hundreds of people, cuts that were expected to affect regional offices. 'What I do know is that when that all nets off, our focus is going to be exactly what the mission of this agency is, which is to make sure that we've got the cleanest air, the cleanest land and the cleanest water,' he said. 'What that actually means in terms of staffing levels and numbers, I do not know.' In terms of his priorities, he said he's still getting up to speed on some of the issues and is waiting on some direction, but he's connected with the environmental commissioners in New York and New Jersey. 'The challenge is large and requires all of us to work together,' Martucci said. — Concern about the cuts: Martucci's predecessor, Lisa Garcia, who led the regional office during the Biden administration, said in an interview that she worries the cuts the Trump administration is making are 'not very strategic and well-thought out' and could hurt the EPA. She said Elon Musk's effort to slash the federal workforce could end up being at odds with President Donald Trump's agenda, because the people with the expertise to carry it out could be lost. Garcia, who helped lead environmental justice efforts during the Obama administration, also defended that policy push, which has been targeted by the Trump administration. The office's roots go back to the first Bush administration in 1992 and it now contains EPA staff whose job is to interact with communities across the country. Without those people, Garcia said, other people may be forced to pick up the slack in ways that don't make sense. 'Are you going to have your lawyers answer the 1-800 number and talk to the communities? Are you going to have your geologist go out to the community and understand what the complaint was and what the concern is?' she said. — Ry Rivard and Marie J. French HAPPY TUESDAY 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. PROPEL IN PERIL: A more than $3 billion transmission project to accommodate new offshore wind plugging into the downstate electric grid is at risk from federal permitting scrutiny. The Propel NY project, backed by the New York Power Authority and NY Transco, needs approvals from the U.S. Army Corps of Engineers. A Corps official expressed uncertainty about how the project's review may move forward given Trump's executive order on wind permits during a call last week with state officials and developers, according to two people familiar with the conversation who requested anonymity due to the private nature of the discussions. A spokesperson for the Army Corps did not respond to a request for comment. 'The Propel NY Energy project remains under review by the Army Corps of Engineers and other permit agencies working toward a mid-2026 construction start,' said Shannon Baxevanis, a spokesperson for NY Transco, which is owned by the unregulated arms of New York's investor-owned electric utilities. The scrutiny by the Army Corps as they navigate Trump's directives puts a question mark on the timeline and future of federal approvals needed for the sprawling project. Propel NY involves four new substations and 90 miles of new underground and underwater transmission lines including three new connections between Long Island's grid and the rest of the state. It's a key project to support New York's offshore wind goals — which are already teetering — and a significant investment for NYPA, the nation's largest state-owned utility. The project was selected by the state's independent grid operator in 2023 after a competitive process. Trump issued an executive order pausing approvals for wind projects pending a review of permitting practices on Jan. 20. The U.S. Army Corps of Engineers temporarily halted reviews of 168 renewable energy projects but lifted that pause earlier this month. But the resumption of permitting did not apply to 'wind and wind-related projects,' according to the Army Corps. The Propel NY project is not linked to any specific offshore wind project but is designed to unlock the full benefits of at least 3,000 megawatts of offshore wind plugging into Long Island's grid. Without the upgrades, new offshore wind projects might not be able to deliver their full output to the entire state. Baxevanis emphasized the project would have other benefits including for reliability and resiliency. NYISO spokesperson Kevin Lanahan also didn't mention 'offshore wind' in a statement on the project. 'The Propel New York project would ultimately benefit energy consumers by providing transmission capability to deliver at least 3,000 megawatts while offering New Yorkers greater access to diverse and efficient resources,' Lanahan said. 'It will also provide effective flexibility under a wide range of operating conditions.' When Propel NY was approved, New York had more than four gigawatts of offshore wind in active development. Now, the state has one small project operating and two contracted projects totaling about 1,700 megawatts. — Marie J. French UTILITY BILLS COULD BE HIT BY TARIFFS — POLITICO's Marie J. French: President Donald Trump's planned tariffs pose a risk to New York utility bills — just as Gov. Kathy Hochul struggles to find levers to keep those costs down. New York imports electricity and gas from Canada, and broad tariffs could also hit equipment utilities buy to upgrade their systems. Trump paused implementation of a planned broad 25 percent tariff on Mexican and Canadian imports, and a 10 percent tariff on Canadian energy products, until March 6. 'This is a wild card, because we're not sure whether there will be tariffs or what the sizes are,' said Public Service Commission Chair and Department of Public Service CEO Rory Christian. The commission regulates the state's electric, gas and water utilities. Here's what we're watching: TUESDAY — The Department of Public Service holds a hearing on regulations to implement the 'RAPID Act,' 1 p.m. and 5 p.m., Hudson Valley Community College, Bulmer Telecommunications Center , 80 Vandenburgh Ave., Troy. WEDNESDAY — The Department of Public Service holds another hearing on regulations to implement the 'RAPID Act,' 1 p.m. and 6 p.m., Senator John H. Hughes State Office Building, Main Conference Room, 333 East Washington Street, Syracuse. Around New York — COMMENT CALL: The Department of Public Service wants comments on NYPA's petition to build the Clean Path transmission project and pass costs on to ratepayers. — SOLAR UPDATE: NYSERDA informed solar companies they'll add some incentives for solar in upstate and Con Edison, but plans to phase out incentives after about $12 million in funding for 79 megawatts of capacity is exhausted, according to NYSEIA. — Long Island town supervisors want the state to classify waste-to-energy plants as 'zero emissions.' The state's climate plan acknowledges existing combustion facilities may be needed to avoid higher emissions from transporting and landfilling waste. The Public Service Commission has an open proceeding to define 'zero emissions' electricity sources. — Canadian visitors may opt to avoid the Adirondacks amid tensions over tariffs and comments by Trump. — Union is reviewing contract offer from National Grid. — People in New York City aren't composting despite universal rollout. — Assembly Transportation Committee chair slams lack of chargers for trucks along Thruway: 'Not only is this not a plan. This borders on ridiculous,' he said. — Adirondack Park Agency reviews herbicide used in Lake George. — The New York Daily News takes on the issue of New York City's property taxes raising Con Ed utility bills, writing in an editorial: 'New Yorkers, from Hochul on down, direct their ire to Con Ed instead of the City Council and the mayor who set the property tax rates. That way the property taxes can be kept lower for residences and businesses, but since everyone uses electricity, it's a backdoor way to still collect the money for the city government.' — Westchester County officials blasted Con Ed's rate hikes. What you may have missed FIRE FEUD — POLITICO's Ry Rivard and Marie J. French: In the wake of California's devastating wildfires, New Jersey's governor is worried neighboring New York is unprepared to fight fires along their shared border. Gov. Phil Murphy used a Thursday press conference on wildfire readiness to say New York's lack of a state fire service is 'beyond belief.' The comments come just three months after firefighters from both states struggled to contain a 5,000-acre blaze along their forested border in the northern part of New Jersey. The November fire, which started near the state border, burned for two weeks before it was contained. Murphy, a Democrat, called his state's own 60-person statewide Forest Fire Service a 'gem' and lambasted New York for not having a similar agency. 'We were battling some serious fires on the New York state border and it was, fair to say, incredibly challenging because they don't have what we have,' he said. 'You think that's crazy? New York's got almost 20 million people — they don't have a state forest fire service and that made that really hard and I would argue it took longer to get that under control because of that than it otherwise should have.' ZELDIN ON OFFSHORE WIND: EPA Administrator Lee Zeldin, a former congressman from Long Island who environmentalists hold out some hope of persuading to support offshore wind, largely quashed that idea. 'I support President Trump, and I'm committed to implementing his orders, his direction on this front,' Zeldin told POLITICO's Emily Ngo. 'Personally, I've long believed in an all-of-the-above approach towards energy.' 'I've long advocated against the desire in a state like New York to put ourselves in a box of relying so much on something like offshore wind that we cannot achieve dates that are set in New York statute without causing extreme economic pain for New Yorkers who can least afford it,' Zeldin said. New York Republicans have long been critical of the state's climate law that requires emissions to be cut dramatically over the coming decades and requires 9 gigawatts of energy from offshore wind by 2035. Zeldin said there are 'many, far smarter ways' to bring economic opportunity to New York state. 'We should be enthusiastically, on a bipartisan basis, both sides of the aisle, tapping into all of these different other forms of energy that New Yorkers are demanding,' Zeldin said. The EPA head said the U.S. has reduced emissions 'for decades.' Emissions were about 3 percent below 1990 levels in 2022, down from a high of 15 percent above the 1990 baseline in 2007, according to the EPA. Zeldin appeared to reference the growth in use of natural gas over coal and oil, which has largely driven emissions reductions in the power sector, including in New York state. Gov. Kathy Hochul called out Zeldin in late January, questioning what he would do about the economic impact of losing offshore wind projects in New York. The governor had pinned hopes for thousands of jobs on the industry, but Trump has committed to blocking new leases and halted permitting. Hopes for the industry are now in tatters, as New Jersey doesn't plan to make any deals for new projects. New York hasn't made new awards as scheduled, citing federal uncertainty, and further delays risk developers backing out of their proposed pricing. The state has one operating wind project supplying Long Island and two others poised to move forward this year. A federal halt to new projects could set New York even further off course from achieving its 70 percent renewable electricity target. Officials already have acknowledged that won't be achieved by the 2030 deadline, and delays to a massive buildout of offshore wind mean it will be further behind schedule. — Marie J. French CLIMATE COLLISION: Environmental activists disrupted the normally staid proceedings of the state's Public Service Commission three times Thursday. It wasn't a rate hike they were protesting, but the decision by Gov. Kathy Hochul's Department of Environmental Conservation to approve a pipeline project. The long-awaited decision was a significant test for Hochul on the state's climate law. It's the first major decision acknowledging that the state's approval will lead to increased emissions but greenlighting it anyway to address reliability concerns. 'There's no reason for it. It's environmentally damaging and it goes against' the state's climate law, said Bill Kish, a Dutchess County resident who attended the commission meeting. 'I realize you can override that act, however that's no excuse for you and the governor to build new gas infrastructure right now.' The Department of Environmental Conservation issued air permits for the Iroquois Enhancement by Compression, or 'ExC,' project last week. The project involves upgrades to two compressor stations in New York that will increase pressure and thus the flow of natural gas on the already existing Iroquois pipeline. During the commission meeting, the protesters moved toward the dais where commissioners sit at the front of the room. Stanchions separating the public from the commissioners were knocked over. Department staff stood up to physically block the protesters. State troopers on the scene ordered advocates to leave if they did not want to be arrested. PSC Chair Rory Christian told the protesters he would speak to them but not during the meeting. — Marie J. French NJ RATE HIKES — POLITICO's Ry Rivard: Electric prices are set to skyrocket in New Jersey this summer. Customers will be paying about $25 more per month for power starting in June, the New Jersey Board of Public Utilities said on Wednesday. The high bills are likely to play into the governor's race that will be in full swing for the June primary. HOCHUL PAUSES NYPA RATE HIKES: Gov. Kathy Hochul has ordered the New York Power Authority to rethink increases to 'the lowest rates in the nation' for some of its hydropower customers. NYPA, which the governor effectively controls, last year proposed rate increases amounting to a tripling in electricity costs in 2028 for some of its customers that benefit from low-cost hydropower, including 51 municipal and cooperative electric utilities. The increased costs are driven by investments in the St. Lawrence and Niagara hydroelectric dams, which NYPA is entitled by law to recover from customers. 'Too many New Yorkers are already falling behind on their energy bills and I will do everything in my power to reign [sic] in these astronomical costs,' Hochul said in a statement on Wednesday. 'While I recognize the Power Authority's critical importance in providing invaluable, clean, baseload power from its large hydroelectric power plants Upstate, I expect NYPA to go back to the drawing board, shelve this existing proposal, and figure out a better way forward.' Just a day earlier, Hochul similarly told Con Ed to withdraw its rate hike proposal. But Hochul has far more power over NYPA. 'At Governor Hochul's request, NYPA will move to withdraw the 2025 proposed rate increase,' said NYPA spokesperson Lindsay Kryzak. 'We understand that New Yorkers are struggling right now, and we intend to make every effort to collaborate with our customers and stakeholders to find a way forward.' The NYPA board of trustees approved starting a public comment process for the increases, which are spread over four years and drop off in the fifth year, at their December meeting. The rate hikes were set to go into effect in July 2025. Republican lawmakers, many of whom represent areas with municipal power providers benefiting from NYPA allocations, have sharply criticized the hikes and urged Hochul to reconsider the increases. Unlike utility rate hikes, these increases are for supply costs and not the distribution infrastructure delivering the power. NYPA last increased the rates in 2014 at the end of a three year rate increase. NYPA is currently 'under collecting' from these customers by about $25 million, according to the authority. The current electric rate is just under $13 per megawatt hour. The proposed increase would have been about 30 percent each year for four years, then a drop of 30 percent down to about $24 in 2029. New York market rates are forecast to be above $40 per megawatt hour through 2028, according to NYPA. Customer bills would not have tripled, since the supply from NYPA is only a portion of the bill. One municipal utility estimated monthly bills for the average residential customer would rise $9 per month in the fourth year. The proposed rate increase is driven in part by a massive $1.6 billion investment to modernize the Niagara power plant, which Hochul toured and touted in 2021. The authority held public hearings on the increases and was accepting public comments. NYPA may return to its board with a plan that takes longer to phase in the increases and recover its costs. Republican Sen. George Borrello, who has criticized the proposed rate hike, took credit for Hochul's decision to halt the process. 'Once Governor Hochul saw the extent of opposition, she put the brakes on it — something she should have done from the start,' he said in a statement. 'This fight isn't over. We must remain vigilant to ensure NYPA doesn't revive this misguided proposal down the road and that New Yorkers continue to have access to reliable, low-cost energy.' The head of a group representing several municipal utilities that are hydroelectric customers praised Hochul and NYPA for the halt. 'At a time when New Yorkers are facing increasing costs across the board, this rate suspension demonstrates a commitment to protecting ratepayers from additional financial strain and keeping New York affordable,' said Dave Leathers, president of the New York Association of Public Power and general manager of the Jamestown Board of Public Utilities. The association 'looks forward to ongoing conversations to ensure NYPA's hydroelectric facilities remain operating and providing clean, reliable energy while keeping rates affordable.' — Marie J. French TOLLS ARE GOOD FOR BUSINESS — POLITICO's Ry Rivard and Nick Reisman: New York City's business community is trying to make a deal on congestion tolls with the city's most famous businessperson. President Donald Trump pledged during his campaign to kill the new fee to enter Manhattan's business district during his first week in office. But even as he continues to publicly toy with plans to eliminate federal approval of the $9 tolls, he's hesitating — thereby creating an opening for a persuasion campaign to either box him in or bargain. HOCHUL SLAMS CON ED RATE HIKE — POLITICO's Marie J. French: Continuing her affordability crusade, Gov. Kathy Hochul is pulling out a time-honored political playbook: bash the utility. Hochul called Con Ed's proposed rate increase 'unconscionable' on Tuesday and urged the state's top utility regulator to reject it. The utility proposed an increase of more than 10 percent for gas and electric customers last month. NJT WORRIES – POLITICO's Ry Rivard: The new head of NJ Transit said Wednesday the agency is worried about losing $300 million a month it relies on from the federal government. As the Trump administration tries to slash spending, CEO Kris Kolluri said his goals for the agency must be understood within 'the context of what is happening in the federal government.' BUDGETING A BILLION: A portion of Gov. Kathy Hochul's $1 billion climate fund should be directed to two existing environmental programs, said Assembly Environmental Conservation Committee Chair Deborah Glick. She suggested $100 million each could be earmarked to boost the funding levels for clean water infrastructure and the Environmental Protection Fund. Hochul proposed $500 million for water infrastructure and $400 million for the EPF in her executive budget, keeping levels stagnant. Environmental groups and other advocates have pushed for additional resources. 'Some of it should be targeted in the existing programs,' Glick said. 'Obviously the governor could find money.' The Manhattan Democrat expressed little appetite for a legislative response to the governor's delay of 'cap and invest' regulations. 'We're not going to meet our goal, that's clear,' Glick said of the state's 2030 emissions reduction target. 'The reality is you set aggressive goals and sometimes you don't meet them — that doesn't mean you should set lower goals.' One of Glick's priorities this session is to pass measures restricting the use of PFAS, after a few bills that appeared poised for passage were blown off track by Hochul's congestion pricing delay last session. 'We have to get a couple of these umbrella bills done,' Glick said. 'We have almost no time to waste and we have a hostile takeover of the government in Washington.' Environmental and public health advocates are prioritizing measures to ban PFAS in many consumer and household products from dental floss to cleaning products (S187), cosmetics and personal care products (A2054/S2057) and in menstrual products (A1502/S1548). — Marie J. French PLASTICS PLAN: A bill that would dramatically change New Jersey's relationship with plastic cleared the Senate Environment and Energy Committee on Monday. The bill would ban plastics with certain toxic chemicals in them, including PFAS, and force companies to halve their use of plastic packaging over the next decade and then help pay for recycling of what remains. The Packaging Product Stewardship Act is meant to tackle plastic as a public health crisis amid increasing research that finds the human body is filled with plastics and that these particles could be making us ill. The bill (S3398) is championed by committee Chair Bob Smith, a Middlesex County Democrat. Versions of the bill have been the subject of about eight hearings before it cleared committee on a 3-2 party line to face an uncertain future in an election year. A few other states have similar plans. A similar bill has advanced in New York's legislature, which Judith Enck, head of the group Beyond Plastics, hopes will create regional momentum and a critical mass for changes to the industry. — Ry Rivard
