ENERGY USERS GATHER:
New York’s policymakers want to cast a broad net to lessen the blow of charging for emissions for companies that use significant amounts of energy and are exposed to trade pressures, they said Thursday. But much is still up in the air. A coalition of large energy users that includes the state’s university system, Wegmans and several upstate manufacturers gathered in Saratoga on Thursday and got an update — of sorts — on the state’s “cap and invest” policy. One of the issues
officials are working through, as they continue to promise draft regulations by the end of this year for the cap-and-trade style program, is how to define the “energy intensive and trade exposed” industries that will get free allowances. Companies will have to meet both criteria, said NYSERDA’s Vlad Gutman-Britten. “For a very long time, the great majority of the costs of compliance for [these industries] will be offset,” he said. He said the state wants to take a “protective and cautious” approach and cast a wide net to define these companies.
“We’ll know much more in the future about how the program is impacting households, how it is affecting businesses and there will be time for adjustments,” Gutman-Britten said. “We want to be very cautious because there are clear trade-offs between the benefits provided to business and industrial folks in the state of New York and household impacts.” Another pressing question for business
leaders making long-term plans is when “cap and invest” may begin. State officials have said they want to see the program start in 2025. But with draft regulations not expected until later this year and a lengthy public comment period stretching into 2025, there’s not much clarity on the timeline.
“It could play out in a couple of ways,” said Mike Sheehan, assistant director of the division of air resources at DEC. He said it would be difficult for the state to start the compliance period, during which allowances have to be purchased, while the public comment period is ongoing. The state is assessing options, Sheehan said. The Citizens Budget Commission is pushing for a more
detailed analysis of the impacts of the “cap and invest” program on households and industries. More information is expected when the draft regulations are released, a NYSERDA spokesperson said. The current price ceiling contemplated would not achieve the state’s goals, absent significant additional policies. “Our pursuit of those targets in the long term is a multifaceted strategy,” Gutman-Britten said. CBC thinks the 2030 target
needs to be reconsidered. Multiple intervenors have pushed for the state to reconsider its 2030 renewable electricity target, as well. During the conference Thursday, Gavin Donohue of Independent Power Producers of New York Inc., which represents power plants including fossil fuel, nuclear and renewables, also urged changes. “We need to look at the dates,” he said. “We need to look at the law and see if its really realistic.” The Business Council of New York State is also pushing for changes to the law.
Gov. Kathy Hochul’s deputy secretary for energy John O’Leary said there has been progress on the climate law’s targets, pointing to a completed offshore wind project, under construction transmission line, build-out of distributed solar and other signals.
“The climate act has its targets … and as the governor says again and again, the state is seriously committed to achieving these goals,” O’Leary said. He invited input from the large energy users as the administration crafts its 2025 agenda that will seek to balance affordability and economic development priorities amid the clean energy transition. — Marie J. French ENERGY EFFICIENCY:
The New Jersey Board of Public Utilities is holding a special meeting on Oct. 30 to consider state-mandated three-year energy efficiency programs for PSE&G, Atlantic City Electric Company, Jersey Central Power & Light, Rockland Electric Company, South Jersey Gas, Elizabethtown Gas and New Jersey Natural Gas. Utility spending could increase by billions of dollars
across the state, with the expectation that more efficient energy use will ultimately offset the relatively small rate increases on customers’ bills. But the potential approval comes amid increased attention by lawmakers on incremental rate increases that have added up to higher and higher bills. The higher rates from these programs would pay for demand response, decarbonization and other efficiency projects. — Ry Rivard TRAIN TOUR —
POLITICO's Ry Rivard: Amtrak and New Jersey Transit have not yet gotten to the bottom of problems with their trains and tracks that upended commutes this summer, causing massive headaches and political blowback. That means problems could crop up again next summer. And the summer after that.
That was the frustrating takeaway from a Wednesday tour that five members of New Jersey’s congressional delegation took on a special train from New York Penn Station to New Brunswick, New Jersey. “I don’t think anybody feels like we are at the point where we can say to you today that we have a plan for next summer,” Rep. Mikie Sherrill told reporters outside the New Brunswick train station.
This summer saw the worst month of performance on New Jersey Transit, which operates along tracks owned by Amtrak, since Democratic New Jersey Gov. Phil Murphy took office in 2018. BUDGET WATCHDOG BACKS CLIMATE LAW CHANGES— POLITICO’s Marie J. French:
A prominent business-aligned budget watchdog said in a report Wednesday morning that New York won’t be able to achieve its 2030 emissions goals — and needs to reconsider key parts of the state’s climate law. The Citizens Budget Commission wants Gov. Kathy Hochul’s administration and lawmakers to weaken the 2030 goal to slash emissions 40 percent from 1990 levels and change how emissions are counted under the landmark climate law.
“I don't think this is a mystery. Looking how far away we are from our renewable goals, which are obviously tied to the emission reduction goals — and we're not going to meet it,” said Andrew Rein, president of the Citizens Budget Commission. Overall, as of 2021, the state had only reduced emissions 10 percent from the 1990 baseline. Why it matters: CBC
released a report Wednesday focused on Hochul’s flagship “cap and invest” proposal, which would charge companies for emissions and then invest the proceeds into clean energy programs and rebates to consumers who would see higher gas prices and energy bills. Hochul’s administration is considering a cap on the price charged for emissions, but implementing such a cap would mean the state won’t achieve its climate goals
without putting additional policies in place. That has alarmed environmental advocates and has led Rein to the conclusion that the state won’t be able to achieve the 2030 goals. CBC has concerns about the affordability of the program as currently proposed and even more so if it were designed to achieve the 2030 target. Instead, the group wants the state to change the target so the cap-and-trade style program would be more effective and less costly. They’re also pushing for more detailed estimates of the program’s cost on households and businesses.
MTA BUDGET GAPS ARE BACK — MTA’s budget gaps are back, according to a new report from New York State Comptroller Thomas DiNapoli. “A year ago, the MTA was looking forward to a period of solid fiscal health, but its financial condition has quickly turned from stable back to uncertain,” DiNapoli said in a statement.
There are several problems, the comptroller’s office found, including paid ridership that has not rebound as quickly as expected since the pandemic. About half the people who ride buses are not paying fares and real estate-related tax revenues are below projections. According to the report
, released Wednesday morning, a budget gap of over $200 million could start this year and increase to more than $650 million by 2028. These gaps could end up being much larger — $3 billion in 2028 — if fare evasion continues running rampant, revenue expected from casinos is delayed and other macroeconomic factors turn against the MTA. These woes
, which affect the $19 billion annual operating budget, are related to other gaps in the MTA’s multi-year infrastructure budget. Gov. Kathy Hochul put a giant hole in the current five-year capital plan when she announced a “pause” on the money-making congestion pricing plan, which would have begun collecting enough tolls this summer to pay for $15 billion in repairs and upgrades. Instead, without the money, the MTA is going to have to suck several hundred million dollars a year out of its operating budget to pay for maintenance and borrowing-related costs.
A year ago, fixing the MTA’s problems was one of Hochul’s major accomplishments. Now, the MTA’s problems are another one of her many headaches. — Ry Rivard BREAKING WIND NEWS —POLITICO’s Matt Friedman:
According to a poll of 616 New Jersey voters by the William J. Hughes Center for Public Policy at Stockton University, just 17 percent said a candidate’s views on offshore wind energy would influence their vote a “great deal,” compared with 41 percent who said it would influence it “somewhat,” and 37 percent who said it would not affect their vote. “No matter which side of the issue voters land on, they seem to agree that it’s not a top priority,” said Hughes Center Research Director Alyssa Maurice. “The opposition to offshore wind is particularly vocal and well-organized in New Jersey, but the poll shows that for most voters
this issue doesn’t move the needle much.” CON ED BUS PILOT:
The state’s largest utility has inked a deal with a bus company to fund a dozen electric school buses in Brooklyn. Con Edison signed an agreement with First Student, a leading school transportation company, last week to provide $9 million from ratepayers to support the buses that will have solar panels on top and be able to supply power back into the electric grid. They’ll replace diesel buses and charge at a depot with a 500-kilowatt solar array and a 2-megawatt battery. First Student hails
the project as a “vehicle-to-everything” project with managed charging and the ability to supply electric capacity when electric demand peaks and potentially a backup power supply for emergency services. “Harnessing electricity from First Student electric school bus batteries to create an emissions-free smart energy hub that can serve a community during peak demand while turbocharging America’s fight against climate change is truly revolutionary,” said First Student CEO and President John Kenning. The company has more than 1,800 vehicles in New York City. The Brooklyn site is also getting $720,000 from NYSERDA vouchers for 6 retrofit electric buses.
First Student has gotten federal and state funding for electrifying 102 buses in six other school districts in New York state. Con Ed also sees the project as a chance to get additional data about the operations of electric school buses as the state and city press toward electrification goals. New York state requires all school buses purchased to be electric in 2027, with some waivers, to support electrifying the entire fleet by 2035. — Marie J. French
NEW YORK OFFSHORE WIND FIELD NARROWS — POLITICO’s Marie J. French:
New York state is now down to three options in its latest attempt to secure offshore wind projects that would help it meet its renewable energy goals. Attentive Energy, an offshore wind developer, last month submitted a project backed by French energy giant TotalEnergies, New York City fossil fuel plant owner Rise Light and Power, and Corio Generation. The developer has now withdrawn its bid, said Damian Bednarz, managing director of Attentive Energy. “Attentive Energy commends
the State’s steadfast support of offshore wind and will continue to evaluate market conditions and future opportunities as they arise,” Bednarz said in a statement. “As Attentive Energy continues to advance opportunities from our lease area, we remain committed to deploying offshore wind and contributing toward our region’s shared economic and environmental goals.” The withdrawal of the project leaves New York with fewer options to achieve its near-term renewable energy targets as it carries out a fifth procurement process. None of the proposed projects are expected to be fully online by the 2030 deadline for the state to get 70 percent of its
electricity from renewables.
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