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Politico
2 days ago
- Business
- Politico
New York moves to electrify buildings
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. NEW YORK MOVES TOWARD ELECTRIFYING NEW BUILDINGS: The state's code council signed off on new rules requiring buildings to forgo fossil fuels starting next year. The State Fire Prevention and Building Code Council approved the new code on Friday, more than two years after the provisions were included in the state budget. 'Buildings have 40 percent of our state emissions so by cutting out building emissions, this is going to be an incredible step forward for our environmental goals,' said Assemblymember Emily Gallagher, who championed the issue in the Legislature, at a virtual press conference celebrating the latest step. 'This was a real battle to get passed.' The new code requires new single-family homes, small commercial buildings and new residential construction with seven stories or less to be electrified starting next year. All buildings will face the same requirements in 2029, with some exceptions. Environmental groups supported the new rules, which align with the state's emissions reduction plans. Business groups, the fossil fuel industry and homebuilders oppose the new requirements. 'Every new mandate adds cost, delays projects, and prices thousands of New York families out of the market,' said Mike Fazio, executive vice president of the New York State Builders Association. 'A one-size-fits-all electrification mandate ignores the diversity of New York's housing markets, climate zones, and infrastructure capacity, and working families will pay the price.' The statewide rules were based on New York City's local law mandating electrification in new buildings. Environmentalists also celebrated a recent legal victory. A federal judge for New York's Northern District rejected arguments from homebuilders, the propane industry and others that the state's new building requirements are preempted by federal law. The plaintiffs in that case plan to appeal the ruling, their lawyer said. In California, a federal appeals court blocked Berkeley's ban on new gas buildings based on a federal preemption argument. Another outstanding issue is a statutory provision directing the utility regulator to define an exemption for buildings where electric service 'cannot be reasonably provided by the grid.' This caveat was key to getting utility buy-in and for Assembly Democrats to sign off on the measure, but environmental advocates worried it might weaken the mandate. 'The [Department of Public Service] is trying to find that spot where they're not undermining the intent of the law and really saving this exemption for situations where it's just unreasonable to electrify new construction,' said Michael Hernandez, Rewiring America's New York policy director. The current proposal, which hasn't yet been finalized by the commission, would limit exemptions to when electric service for a fully electric option would take 18 months longer than providing traditional electric and gas service. — Marie J. French SIERRA CLUB FIGHTS FOR ANDY'S FARM — The New Jersey chapter of the Sierra Club is on the same side as the Trump administration in a fight to stop an affordable housing project in Cranbury. In a lengthy statement on Friday afternoon, the club waded into the fight over Andy's Farm, which the town plans to seize through eminent domain to make way for scores of affordable housing units. 'Using eminent domain to kick a family off of their farm that they have owned for generations is despicable,' said Taylor McFarland, the Sierra Club chapter's conservation and program manager. 'Cranbury needs to do a better job of finding suitable locations for affordable housing. There is no excuse. This is a massive overreach by the Township to unjustly seize land that has been in a family since 1850, displacing their livelihood and erasing their history. It is an abuse of power that sets a slippery slope for towns trying to meet their affordable housing mandates.' The farm fight has rallied conservatives and members of the MAGA movement, including Agriculture Secretary Brooke Rollins who said in a social media post last month that 'the Biden-style government takeover of our family farms is over.' — 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. Editor's Note: Want to receive this newsletter every weekday? Subscribe to POLITICO Pro. You'll also receive daily policy news and other intelligence you need to act on the day's biggest stories. Here's what we're watching this week: MONDAY— The MTA's committees meet, starting at 8:30 a.m. — The Gateway Development Commission meets, 4 World Trade Center, 23rd Floor, 11 a.m. — A virtual press conference, hosted by NRDC, to announce a legal petition demanding EPA to step in because New York State and the City of Syracuse 'have failed to address the city's lead water crisis,' 1 p.m. TUESDAY— The New York Power Authority board of trustees meets, 9 a.m. WEDNESDAY— The MTA board meets, 9 a.m. — New Jersey BPU holds a virtual stakeholder meeting on the readoption of Electric Discount Energy Competition Act-related rules, 10 a.m. — The Nuclear Innovation Alliance releases a new guide for state policymakers, with discussion about New York's plans, 11 a.m., virtual. AROUND NEW YORK — New York's climate law is on trial. — The heat here and distant wildfires hammer your lungs. Around New Jersey — Sen. Andy Kim visited the South Jersey Port in Paulsboro — we used to call it the 'wind port' — and said he 'met with EEW CEO Charlie Lamb to discuss how regional stakeholders and EEW can work together to maximize the port's potential and drive South Jersey's growth.' The offshore wind industry that was supposed to anchor the port, and EEW's presence is, of course, in dire straits. — Will the next governor keep funding NJ Transit as Murphy has? What you may have missed DEVELOPERS RESET AFTER OFFSHORE WIND ORDER: The Public Service Commission's decision to halt work on a transmission project to support offshore wind has developers who were competing for the job eyeing their options. The commission last week terminated a selection process for transmission infrastructure to connect nearly 5,000 megawatts of offshore wind to New York City's grid. The commission cited concerns about ratepayer costs and lack of federal support making it unlikely that the project would be needed on the timeframe initially envisioned. Bidders and stakeholders have 30 days from the PSC's decision to challenge it by filing a petition for rehearing. One developer — Viridon — is considering its next steps. 'This decision was extremely disappointing to anyone concerned about downstate reliability, affordability and the future of clean energy in New York,' said Basil Seggos, a former New York DEC commissioner whose clients now include Viridon. 'Trump deserves the lion's share of blame due to his pause on wind. But the PSC acted too quickly and rashly, ignoring its own ability to modify the process and leaving the state — and ratepayers — with fewer energy planning options in a time of spiking demand. The Commission should quickly reconvene to get this planning process back on track.' Others were more circumspect. PJM HITS CAP WITH CAPACITY PRICE — POLITICO's Ry Rivard: The nation's largest power market will see another increase in wholesale electricity prices — but utility customers are unlikely to face the type of dramatic spike next summer like the one they're paying for now. Power prices in PJM Interconnection's latest capacity auction increased by 22 percent to $329 per megawatt day, a level PJM said it expects to translate to a year-over-year increase of a 1.5 to 5 percent in some customers' bills, depending on their state. Consumers in some areas could see a drop in retail rates when they take effect next summer, PJM added. 'While the PJM auction results reach new highs and reflects PJMs flawed market design, due to some changes that NJBPU advocated for, we don't anticipate a comparable bill impact as we did this summer at this time,' New Jersey Board of Public Utilities President Christine Guhl-Sadovy said in a statement. The capacity market auction, which locks down power supplies for the coming year in the energy market for 13 states and Washington, D.C., has drawn increased scrutiny since rates surged by more than $200 last year to hit $270/MWd. That drove dramatic, double-digit rate increases for customers, including a $25 per month bill increase in New Jersey that caused political uproar. PSEG, the owner of New Jersey's largest utility, said Tuesday it does not expect a major rate increase because of the new PJM auction results. The new capacity price is $59 more than last year, an increase that showed the ongoing constraints on energy supplies across the region. The figure is also bumping up against the price cap PJM agreed to following pressure from Pennsylvania's Democratic Gov. Josh Shapiro. Many market watchers expected bids from power generators to come in as high as possible — and they did. That cap goes away, though, after the next auction later this year. That will create major uncertainty about how far prices could surge in coming years, especially given rising demand for power from artificial intelligence data centers and bottlenecks in building the natural gas and nuclear power plants that President Donald Trump is seeking. PJM HEARS FROM GOVS — The region's governors are continuing their pressure campaign against PJM. On Wednesday, as a representative spoke at a PJM meeting about their bosses' concerns, the governors announced a conference in September to consider 'necessary organizational and mission changes in PJM governance.' NEW ENERGY PATHWAYS — POLITICO's Marie J. French: Gov. Kathy Hochul's administration sees no reasonable way for New York to achieve its climate law targets on schedule. NYC LOSING MORE FOSSIL PLANTS: A fleet of floating fossil fuel units that run on the hottest days to keep the lights on plan to retire next year as their profits drop. ArcLight's Alpha Generation, which owns the barge-mounted peaker plants, filed retirement notices with the state's independent grid operator earlier this month for the Narrows and Gowanus plants, proposing to shut down in July next year. The 1970s combustion turbines have high emissions rates when they run and were targeted for retirement by regulations under former Gov. Andrew Cuomo. Gowanus and Narrows proposed shutting down during the summer to comply but have been kept online year-round by the New York Independent System Operator to ensure reliability. They're not expected to be needed after the 1,250-megawatt Champlain Hudson Power Express, a transmission line to bring power from Canada into the city, is completed next year. The arrival of that additional energy, subsidized through a contract with NYSERDA, is expected to help clean up the city's grid. The new resource is also expected to lower electricity prices — and thus, profits for existing fossil generators. 'With the entry of CHPE next summer, we expect market prices to be insufficient to support continued operations,' said Matt Schwall, director of regulator affairs at AlphaGen. The deactivation notice filed with the NYISO kicks off a review by the grid operator to check whether New York City's grid can still meet demand without these combustion turbines, even under the most stressful conditions. That could lead to the units being kept online longer by the NYISO, but is not expected under current forecasts. 'To the extent the barges are retained for reliability beyond CHPE's entry, it reflects that the value of these dispatchable assets has not been reflected in market prices,' Schwall said. The owner of the two Brooklyn plants (formerly known as Astoria Generating Company and Eastern Generation) previously made plans for the future based on the shifting winds of state policy. The company proposed shutting down the 32 Narrows barge units while repowering the Gowanus facility with eight more efficient combustion turbines in 2018, but dropped that proposal after Gov. Kathy Hochul's administration rejected permits for similar gas projects due to the state's climate goals. The company instead prioritized battery storage opportunities, although those haven't moved toward construction given a need for contracts or other financial support. While the power industry is watching with interest Hochul's shifting stance toward more openness to natural gas and its potential role in the state's energy future, none have yet moved to apply for a new gas plant permit. Given the reliance of new resources in New York (right now, renewables and storage) on out-of-market subsidies, it appears that private developers are so far unwilling to risk the yearslong process without additional signals from the state. The two barge sites do offer potential advantages for future power infrastructure, Schwall said. 'Given the critical electric and fuel interconnections, there is opportunity at these sites for a second life, both in the form of energy storage and repowered gas generation to support system reliability and the state's renewable goals,' he said. 'We are hopeful the state will invite and support such investments.' — Marie J. French DEP FLOOD RULE DEETS — The New Jersey Department of Environmental Protection on Monday released 273 pages of amendments to and responses to comment about its sprawling package of coastal flood rules. Netflix details too: In response to a request from POLITICO, the department released a public comment letter CSG Law wrote on behalf of Netflix, which received a carve out for its $1 billion plan to redevelop Fort Monmouth into a film and television studio. John Valeri Jr., an attorney who is representing Netflix, wrote last November that if the company had to comply with the flood rules 'significant portions of the property dedicated for future development, including studios, may not be achievable.' In particular, certain buildings would have to be elevated or flood-proofed, which would be an 'extremely expensive enterprise, and was never considered as part of Netflix's decision' or is 'not generally an option for Netflix, particularly their stages, because the activity must rest on solid ground.' — Ry Rivard
Politico
21-07-2025
- Business
- Politico
Tax credit whiplash
Good morning and welcome to the weekly Monday edition of the New York & New Jersey Energy newsletter. We'll take a look at the week ahead and look back on what you may have missed last week. TAX CREDIT WHIPLASH — POLITICO's Marie J. French and Ry Rivard: The accelerated phaseout of federal tax credits for clean energy has increased uncertainty for state efforts to bolster renewables. States are delaying procurements of new renewables, including offshore wind and solar, as they evaluate the energy impacts of the One Big Beautiful Bill Act. Energy experts and policymakers expect consumer costs to be higher due to policy changes in the GOP megabill. 'Those costs will certainly increase, not just from short term supply shocks and the loss of federal tax credits but also from the uncertainty,' said Julia Hoos, an energy analyst with Aurora Energy Research. Why it matters: New York, New Jersey and other Northeast states have ambitious renewable energy goals. Democratic leaders were already signaling delays in meeting them after rising costs led to canceled contracts before President Donald Trump's election, but the looming end of federal support elevates the uncertainty and potential for missed milestones. 'These goals were based on, predicated on, offshore wind and solar really emerging as primary energy sources,' Gov. Kathy Hochul told reporters on July 11. 'But I have to deal with the reality that with a president that's hostile to those interests — and has told me directly that — how do we pretend that the goals will be met when all the incentives to invest in those industries has dissipated?' PJM TO HEAR FROM GOVERNORS — POLITICO's Ry Rivard: The embattled operator of the nation's largest electric grid agreed to hear from concerned governors' offices next week following a bipartisan letter from state leaders questioning whether it has its act together. In recent days, 10 governors, including three Republicans, have questioned the direction taken by PJM Interconnection LLC, which runs the grid and energy market for 13 states and Washington, D.C. PJM board Chair David Mills said Friday the grid operator would make time at the July 23 PJM Members Committee meeting to hear from the governors' representatives, who are expected to urge the grid operator to fill two seats on its nine-seat board with people handpicked by the states. On Wednesday, the governors of Delaware, Illinois, Kentucky, Maryland, Michigan, New Jersey, Pennsylvania, Tennessee and Virginia told PJM it is facing an 'unprecedented crisis of confidence.' On Thursday, Ohio Gov. Mike DeWine, a Republican, sent PJM a separate letter saying he supported his fellow governors' position. While blue states have long criticized PJM, the bipartisan criticism is perhaps the most serious political threat to PJM in its decades of existence. In a letter to governors, Mills — a former energy industry executive and consultant — defended his organization's record and said PJM is keeping the lights on 'through some of the most challenging circumstances that any grid operator, anywhere, has faced.' HAPPY MONDAY MORNING: Let us know if you have tips, story ideas or life advice. We're always here at mfrench@ and rrivard@ And if you like this letter, please tell a friend and/or loved one to sign up. Want to receive this newsletter every weekday? Subscribe to POLITICO Pro. You'll also receive daily policy news and other intelligence you need to act on the day's biggest stories. Here's what we're watching this week: MONDAY — The New Jersey Department of Environmental Protection is expected to publish substantially amended coastal building rules i n the New Jersey Register. TUESDAY — The Department of Public Service holds public statement hearings on the Propel NY transmission project on Long Island, 1 and 6 p.m., Knights of Columbus, 81 Sea Cliff Ave., Glen Cove. — The Department of Public Service holds public statement hearings on the Con Edison rate hike proposal, 6 p.m., JCC of Staten Island. — The Department of Environmental Conservation holds a hearing on the draft cryptocurrency environmental impact report, 2 p.m. WEDNESDAY — The New York State Energy Planning Board meets to vote on a draft energy plan, 1 p.m., Empire State Plaza, Meeting Room 6, Albany. — The Department of Public Service holds public statement hearings on the Propel NY transmission project on Long Island, 1 and 6 p.m., Nassau County Legislature. — The PJM Members Committee is expected to hear complaints from governors' representatives, 3 p.m. — The Department of Environmental Conservation holds a hearing on the draft cryptocurrency environmental impact report, 4 p.m. Around New York — 'This is a project of super-importance to the Trump administration, and I was honored to be asked to do it,' Andy Byford told City & State. — explores whether blocking gas-fired power plants was a mistake. — OPINION: NYSERDA President and CEO Doreen Harris touts programs to help New Yorkers save on energy bills, plus a nascent idea for a new nuclear plant upstate. Around New Jersey — NJ Transit's new budget 'calls for $980 million in fare revenue, but NJ Transit has failed to make its fare revenue goals for the past nine years,' Larry Higgs reports. What you may have missed NETFLIX EXEMPTION — POLITICO's Ry Rivard: Netflix is getting a major exemption from New Jersey's new coastal flood rules after months of lobbying over permitting issues at the sprawling former Army base it is working to redevelop. The carve-out will allow one of Democratic Gov. Phil Murphy's pet projects — a $1 billion film and television studio — to avoid complying with climate change regulations his administration has been working on since before the pandemic. Changes to the draft rules show the administration plans to exempt film studios, like Netflix, that have partnerships with the state's Economic Development Authority. Netflix is planning to build 12 soundstages at Fort Monmouth, a 292-acre former Army installation in Eatontown and Oceanport, New Jersey. State Sen. Declan O'Scanlon, a Republican who represents the area, said he's 'thrilled' Netflix got the carve-out but said every coastal development project should get the same level of 'deliberation and fair consideration.' The governor called changes to the flood rule a compromise. 'This is a classic situation where you're trying to get the right balance,' Murphy told reporters Tuesday in Newark. In lobbying disclosures from this year and last year, Netflix reported lobbying the DEP 'regarding environmental permitting issues related to the development of the former United States Army Base named Fort Monmouth.' The company also reported lobbying Eric Brophy, the governor's deputy chief of staff for economic development, about 'DEP flood report rules.' OFFSHORE WIND TRANSMISSION TERMINATED — POLITICO's Marie J. French: President Donald Trump's quest to stop 'windmills' in the ocean has led New York to abandon a major transmission project intended to support offshore wind. The decision to cancel the proposed investment is an acknowledgment that New York will not meet its 2035 offshore wind target given Trump's indefinite pause on permitting for the technology. Offshore wind is fundamental to the state's efforts to reduce greenhouse gas emissions. Public Service Commission Chair Rory Christian criticized federal attacks on the industry and said the commission's decision was necessary to protect ratepayers. The commission canceled the process to select a transmission plan during its regular monthly meeting Thursday. — On the 2035 target: 'Staff does not expect any additional generation to be developed in the New York Bight until federal policy changes, and even if the federal government resumes its support of the industry in a few years, projects will likely not be operational by 2035,' said Liz Grisaru, a senior adviser for policy at the department, during the meeting. After the meeting, DPS spokesperson Jim Denn said 'while the goals will be difficult to achieve by 2035, it is possible more offshore wind projects could come online by then depending on whether there are any shifts in federal policy.' — Reactions: The New York League of Conservation Voters' Julie Tighe said the group is 'deeply disappointed' by the decision. 'While the federal government continues to undermine progress on clean energy, New York should be doubling down on our commitment to become energy independent, not stalling it,' she said in a statement. 'These lines take many years to plan, permit, and build — by kicking the can now, we're risking falling behind in our clean energy transition and driving up costs in the future.' Natural Resources Defense Council's Chris Casey also found the decision 'deeply disappointing.' 'Rather than stepping back, the state should be continuing low-cost, high-value work — such as completing the grid operator's cost benefit analysis, selecting the most effective project, and advancing state-level approvals — to position New York to move quickly once federal barriers ease,' he said in a statement. The Alliance for Clean Energy New York and the New York Offshore Wind Alliance, which pushed for work to continue on the transmission project, issued a more milquetoast comment: 'Offshore wind projects can take more than a decade to develop, spanning far beyond state and federal election cycles. We encourage New York State to continue developing infrastructure in the near-term that will enable new generation to come online, addressing reliability and affordability for New Yorkers.' ENERGY ASSISTANCE EXPANDED — POLITICO's Marie J. French: More utility customers in New York will receive bill discounts under an expanded affordability program approved Thursday. The Public Service Commission voted to expand eligibility for the state's 'energy affordability program' to moderate-income residents. The move is expected to provide financial assistance to an additional 1.6 million households. 'With this expanded policy, we expand our reach to more households — households who had previously been excluded from this vital support because they didn't meet legacy criteria — even though they were still struggling to pay their bills,' said Public Service Commission Chair Rory Christian. 'More New Yorkers will be able to afford to keep the lights on.' Utility costs have been raising affordability concerns, with Gov. Kathy Hochul slamming proposed rate hikes and customer advocates pointing to the high number of people unable to pay their bills. The expanded program was required by the state budget passed in 2023 as lawmakers sought to address those concerns. — Also at the PSC: The commission took steps to hold utilities accountable for delays and problems with community solar credits and billing. New performance metrics could penalize utilities, although the commission only adopted two of six proposed measures. That was partly due to a recognition that complaints about consolidated billing have declined in recent years and that any costs to improve utility billing systems would be passed on to ratepayers. 'I think these provisions are going to encourage the right behavior from utilities and also, compensate customers if utility behavior is not aligned with our expectations,' Christian said. About 224,000 customers across the state are enrolled in community distributed generation programs, according to Department of Public Service staff. The commission also authorized the utilities to increase the fee utilities collect from community solar projects from 1 percent to 1.5 percent to cover their costs to comply with the order .… The commission also approved a Rochester transmission project to improve reliability … Central Hudson will have to start demand response programs and non-pipeline alternatives under a gas planning order. NEXT GOVERNOR COULD EASILY REMAKE BPU — POLITICO's Ry Rivard: New Jersey's next governor could quickly remake state energy policy after taking office by filling three seats on the powerful five-seat Board of Public Utilities. The board has been down a member for more than a year and a second vacancy opened Wednesday following the abrupt departure of Republican member Marian Abdou, who said she was leaving to tend to her family. A third spot could open next March, when Democratic commissioner Zenon Christodoulou's term expires. That means unless Gov. Phil Murphy, a term-limited Democrat, can get the Senate to quickly approve a pair of new members, his successor will be able to totally reshape the board during their first months in office. A Murphy spokesperson said the governor expects to fill the vacancies during the lame-duck legislative session after the election in collaboration with the Senate. UTILITY CALL CENTER LAW UNCERTAIN — POLITICO's Marie J. French: The fate of a union-backed measure to keep and expand utility customer service jobs in New York is uncertain after a federal court ruling. GREENWAY — Gov. Phil Murphy broke ground on a new rails-to-trails greenway to connect Newark and Jersey City. In the bed of an old Norfolk Southern line, the trail for bikes and pedestrians will eventually extend for nine miles through parts of Essex and Hudson counties. The first mile, which is in Newark and expected to be completed by the end of 2026, will cost about $65 million. It will be the first new state park in decades. Brendan Gill, an Essex County commissioner who championed the project, said it took 15,000 letters to Murphy and other officials to get going and had been under discussion for well over a decade. 'There was excuse after excuse after excuse as to why this project was never going to happen,' he said. Sen. Teresa Ruiz, who represents Newark, described the toxins and shabbiness of the area when it was an abandoned rail line and said, 'imagine the good of what this open space can do.' — Ry Rivard
Politico
14-07-2025
- Business
- Politico
Labor cheers Hochul on energy approach
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. LABOR CHEERS HOCHUL ENERGY APPROACH — POLITICO's Marie J. French: Gov. Kathy Hochul's 'all of the above' approach to meet New York's increasing energy needs has been slammed by environmental groups. But the Democrat's recent embrace of new nuclear energy and growing openness to gas pipelines has exhilarated many in the labor movement — particularly those who have long worried the state's transition to clean energy would harm their members. 'We are appreciative of the fact that she's taking a second look at these issues,' said John Samuelsen, president of Transport Workers Union International, which represents over 160,000 workers including some in the utility industry. 'She's probably going to have a heart attack if she reads me saying that. It's probably the first positive thing I've said about Hochul publicly in years.' The Democratic governor faces a potentially tough reelection fight next year, including a progressive primary challenge from her own lieutenant governor and two Republican members of Congress eyeing campaigns. Hochul wants to run on delivering affordability and energy costs are a key piece of that message, although environmentalists say the costs of nuclear and gas infrastructure will ultimately raise bills. Her rhetoric aligns with a national shift among Democrats who are struggling to implement ambitious climate policies with near-term price tags for consumers. Hochul's shift on energy policy includes continuing to subsidize renewables while also announcing plans to build a new nuclear plant in New York and expressing openness to gas pipelines and power plants. The moves largely align with what some labor unions, particularly in the energy sector, have wanted to see since passage of New York's 2019 climate law. HARD ROAD ALONE: Gov. Kathy Hochul echoed a longtime talking point of New York Republicans and business groups on the state's climate law Friday — they have argued New York shouldn't bear the brunt of costs of climate action when the state's emissions are only a fraction of the global problem. 'We are very focused on making sure that we do our part, but other states have to play a role as well — you think about that — so one state cannot solve the climate crisis,' Hochul told reporters at an event on weather related disasters. It's part of an ongoing rhetorical shift by Hochul, who has for years been raising concerns about the cost of the state's climate law for New York residents while saying she's still committed to making progress. The governor earlier this month touted how she is 'slowing down' the climate law because of affordability concerns. On Friday, she blamed President Donald Trump, who took office months after her own officials acknowledged they wouldn't meet the near-term 2030 renewable goal. 'Those goals remain. They're statutory. I believe we'll hit many of them, especially our longer term ones,' Hochul said. 'Unfortunately, because of decisions made in Washington, I believe that there'll be a setback in some of the initiatives.' The president's reconciliation bill included major cuts and quicker phase-outs for renewable energy tax credits. 'These goals were based on, predicated on, offshore wind and solar really emerging as primary energy sources, but I have to deal with the reality [of a] president that's hostile to those interests,' Hochul said. 'I'm just dealing in reality here.' — Marie J. French HAPPY MONDAY MORNING: Let us know if you have tips, story ideas or life advice. We're always here at mfrench@ and rrivard@ And if you like this letter, please tell a friend and/or loved one to sign up. Want to receive this newsletter every weekday? Subscribe to POLITICO Pro. You'll also receive daily policy news and other intelligence you need to act on the day's biggest stories. Here's what we're watching this week: TUESDAY — The New York Power Authority board of trustees audit committee meets, 8:30 a.m. THURSDAY — The Public Service Commission meets, 10:30 a.m. Around New York — Assistant forest ranger found dead after being missing for more than a week, prompting questions about DEC's system to keep track of rangers in the field. — The New York Times examinesLocal Law 97 in the mayoral race. — The Buffalo News highlights NYPA's Niagara Power Project investments. — Onshore wind and solar developers are racing against the clock to start – and possibly finish – construction to secure federal tax credits, but many hurdles remain, New York Focus' Colin Kinniburgh reports. Under construction offshore wind projects aren't impacted, but solar and battery projects face challenges, Newsday's Mark Harrington reports. — Possible mountain lion sighting in Rochester sparks fascination, concerns. — The Gothamist highlights New York's Mesonet weather forecasting system. Around New Jersey — Soaring bills prompt questions from New Jersey residents. — Rising heat raises pregnancy risks. What you may have missed GASSING UP ASSEMBLY DEMS: A climate advocacy group plans to run a digital campaign thanking Assembly Democrats who voted for the elimination of the '100-foot rule.' The measure, if Gov. Kathy Hochul signs it, would end subsidies for a portion of the cost of new gas hookups that are currently paid by all ratepayers. The change only affects residential buildings, and would make it more expensive for new or existing homes to connect to the natural gas system. It was an incremental step in environmentalists' efforts to transition the state off gas — and the only part of a more sweeping measure that garnered enough support in the Assembly to come to a vote. Spring Street Climate Fund is spending five figures on the digital ads. The straightforward 'thank you' for 'ending the 100-foot rule: cleaner heat and lower bills' will run for all 83 Assembly Democrats who voted for the measure in the final days of session in Albany. Spring Street earlier in the session said they'd run ads against Assembly Democrats they viewed as holdouts against the broader gas transition measure, NY HEAT, if it was not included in the budget. That spurred backlash from some Assemblymembers, including one co-sponsor who took her name off the bill. That plan was dropped and Assembly Democrats held several conferences to discuss the measure. Ultimately, they passed the standalone elimination of the 100-foot rule. 'Assembly members from all over New York voted for a climate bill that will save money for utility customers, and their constituents should know that,' said John Raskin, president of Spring Street Climate Fund, in a statement. 'Holding lawmakers accountable isn't just about letting constituents know when their representatives are doing wrong. When lawmakers vote for bills that will help their constituents, people in their district need to know.' Supporters of the 100-foot-rule measure say it's fair to make those hooking up to the system pay for the full cost of new pipeline and that the change will ultimately save ratepayers money. Opponents of eliminating the 100-foot rule argue it could raise the cost of new homes and are planning their campaign to push Hochul to veto the bill. The governor previously backed the change, although she didn't include it in her budget proposal this year. Business groups, homebuilders, labor unions representing workers on the gas system, gas-only utility National Fuel Gas and other fossil fuel companies oppose eliminating the rule. New Yorkers for Affordable Energy, which is backed by National Fuel Gas and others, will pressure the governor to reject the measure. — Marie J. French DEMOCRATS RETREAT ON CLIMATE — POLITICO's Jeremy B. White and Camille von Kaenel: Donald Trump is coming for California's signature climate policies — and so is California. Stung by the party's sweeping losses in November and desperate to win back working-class voters, the Democratic Party is in retreat on climate change. Nowhere is that retrenchment more jarring than in the nation's most populous state, a longtime bastion of progressive politics on the environment. NORTHEAST CARBON TRADING EXTENDED — POLITICO's Marie J. French: The nation's oldest cap-and-trade program will further ratchet down emissions from power plants in the Northeast under new targets agreed to by 10 states. The planned updates to the Regional Greenhouse Gas Initiative, or RGGI, released earlier this month will reduce the cap for carbon emissions from the power sector by at least 60 percent in 2037 compared to the 2025 level. Environmental advocates praised the step forward after lengthy negotiations among the states. The plan to extend the cap-and-trade program will continue emissions reductions since the bipartisan multistate agreement launched in 2009. Environmental advocates see it as evidence of crucial state leadership on climate as President Donald Trump rolls back federal initiatives. 'This new announcement … further demonstrates the critical role states can and will continue to play on climate and clean energy leadership, and despite the setbacks at the federal level, it's a prime example of how we can continue to make progress,' said Jackson Morris, the Natural Resources Defense Council's director of state power sector policy. NUCLEAR COST CONCERNS — POLITICO's Debra Kahn: Nuclear power is a political winner — but not a money saver… The hippies are dying out, and with them the memories of Shoreham, San Onofre, V.C. Summer, Three Mile Island and other nuclear plants that didn't pan out, suffered radiation leaks or otherwise closed before their time (although they live on, in many cases, in electric bills). Amid a broader global flirtation with the technology, Democrats across the country, driven by demand projections as well as climate concerns, are now joining Republicans in pushing for a nuclear resurgence — and there hasn't been a partisan backlash. BIG BATTERY BET: While major generation projects, like offshore wind farms, have stalled in New Jersey, the state is starting to bet big on batteries. Clean energy advocates hope that by storing power when demand is down and it's cheaper, the state can shave down the price spikes in the PJM market. Moira Cyphers, who directs the trade group's eastern state affairs for American Clean Power, which is backing the storage push, said there are 1.2 GW of near-term projects that could be ready to go in 2-4 years and 3.7 GW in later years, according to self-reported numbers from its members and a look at the PJM queue. The New Jersey Board of Public Utilities and the Legislature have both recently advanced major energy storage program. The BPU in June approved the first phase of what officials hope will be 2 GW by 2030, including 350 MW in projects awarded by the end of the year — goals that are in line with something Gov. Phil Murphy's administration has previously wanted. Even as the agency's clean energy money is being taken in Murphy's budget, the BPU has $125 million to spend on storage from the settlement with Orsted, though the wind industry thinks it shouldn't all be spent on batteries. Lawmakers also sent Murphy a bill that requires the BPU to run a transmission-scale energy storage program with at least $60 million in annual incentives for developers and sets a target of 1 GW by the end of 2026. Its sponsors include the chairs of both energy-related committees in the Legislature, Assemblymember Wayne DeAngelo and Sen. Bob Smith. Cyphers said Maryland is doing a similar push that comes as states try to 'stretch capacity on the grid.' Right now there is about 100 MW of storage in New Jersey compared to much larger capacity in states with lots of wind and solar, like 2 GW in Arizona, 9 GW in Texas and 12 GW in California. — Ry Rivard NY GOP CALLS FOR 'ENERGY EMERGENCY': New York Republican lawmakers want Gov. Kathy Hochul to declare a state of emergency and suspend the state's 2019 climate law. Senate Republicans sent a letter to the governor on Thursday calling for immediate action 'in response to escalating reliability concerns surrounding our electric grid and the rapidly rising energy costs burdening New York ratepayers.' The letter says the state mandates for electrification and more renewables are raising energy bills and increasing strain on the grid. 'Legislation stemming from the [climate law], including mandates for electric vehicles, electric school buses, electric buildings, the repeal of the '100-foot rule,' and a Cap-and-Invest program risks overloading the grid at a time when demand is growing and reliable energy supply is increasingly constrained,' the letter states. The letter notes the New York Independent System Operator issued energy warnings when operating reserves fell to lower than usual levels earlier this summer. The warnings were part of a new system set up this year and the NYISO indicated there was still enough energy to meet the state's needs. The grid operator has warned of tightening reliability margins statewide, although its latest long-term forecast did not find a shortfall. The governor, at a diner in western New York earlier this month, said she was 'slowing down' the climate law's implementation. 'We cannot accomplish what those objectives were back before I became governor in a timeframe that's gonna not hurt ratepayers,' she said. 'Utility costs are a huge burden on families and I'll do whatever I can to relieve — alleviate that.' Hochul has already indicated the state is not on track to meet the near-term goals in the Climate Leadership and Community Protection Act. Her administration has delayed enforcement of the state's electric vehicle sales mandate, punted indefinitely on implementing 'cap and invest' and signed a budget allowing more flexibility for school districts to electrify their fleets. The state has only reduced emissions by about 9.4 percent from 1990 levels as of the most recent data, and is not on track to reduce emissions by 40 percent until at least 2036. The climate law calls for hitting that level by 2030. The Republicans' letter cites a high-end cost estimate from the state's climate plan as a 'conservative' estimate of the CLCPA's costs — about $340 billion in 2020 dollars. Hochul officials have previously said the societal benefits outweigh the costs, based on that modeling. The benefits include avoiding greenhouse gas emissions and health savings, which won't show up on people's utility bills. They also cite New York's high residential electricity rates, which are about 47 percent higher than the national average, according to federal data. New Yorkers use less electricity than residents of other states. A recently released NYSERDA analysis found New York households spend less than the national average on energy — including utilities and transportation. 'We further advocate for an 'all-of-the-above' energy policy that does not rely solely on wind and solar but also embraces dependable energy sources,' the Senate Republican letter says. Hochul has publicly embraced additional energy sources, including new nuclear energy and her administration has also expressed more openness to natural gas power plants in recent weeks. 'The Governor has made it clear she's taking an all-of-the-above approach to energy that prioritizes affordability, reliability, and sustainability,' said Ken Lovett, a spokesperson for Hochul. 'Rather than grandstanding, these legislators would be better off spending their time pushing back against the massive cuts their colleagues in Washington pushed through that will devastate their communities here in New York.' Rollbacks of federal incentives for clean energy are likely to raise costs for New York ratepayers to achieve the state's climate goals. State analysts previously estimated the Inflation Reduction Act could lower New York's costs to achieve its targets by $70 billion or nearly 20 percent through 2050. Major components of that Biden-era legislation are being canceled or phased out more quickly under President Donald Trump's 'One Big Beautiful Bill.' NYSERDA hasn't yet completed an analysis of the impacts. 'NYSERDA is still reviewing the Federal Reconciliation Bill and its impacts, but the new law puts thousands of jobs at risk and could cut billions in funding and impact overall market momentum,' said authority spokesperson Kate Muller. 'This bill undermines New York State's demonstrated leadership in advancing clean energy technologies as a part of an all-of-the-above energy strategy including investments in wind, solar, hydroelectric, and nuclear power to create a clean, affordable, and reliable energy grid.' Environmental advocates want to see Hochul step up investments in renewables and clean energy in response to Trump's cuts. NY Renews executive director Stephan Edel said New York should move forward with 'cap and invest,' a cap-and-trade style program to charge for pollution and invest the money in transitioning off fossil fuels. Edel said Hochul shouldn't leave that revenue source on the table. 'If we're losing the production tax credit, if we're losing federal incentives, the state either has to say we're just not going to make meaningful efforts or it has to put some money down,' he said. — Marie J. French
Politico
07-07-2025
- Politics
- Politico
Environmental groups slam gas push
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. ENVIRONMENTAL GROUPS PUSH BACK ON GAS PLANTS: Environmentalists slammed conclusions by the state's independent grid operator that new or repowered fossil fuel units may be needed for reliability. The New York Independent System Operator indicated in its most recent 'Power Trends' report — a summary of previous analysis with additional context designed to keep policymakers and the public informed about the electric grid — that repowering gas plants should be considered given growing demand and a slow buildout of renewables. But environmental groups — Earthjustice, Environmental Defense Fund, Evergreen Action and WE ACT for Environmental Justice — want Gov. Kathy Hochul's administration to reject calls for more gas power. 'It seems that NYISO is irresponsibly seeking to create a false narrative that New York needs new gas generation, even though there is no evidence to support that claim,' says a letter sent from the groups to Hochul and state officials. The NYISO's most recent reliability analysis that the 'Power Trends' report is based on did not find a statewide reliability issue, based on new large loads being flexible enough to turn off when needed. It did identify reliability problems in New York City if NYPA retires its natural gas peakers. But the grid operator has repeatedly been raising concerns about the narrowing margins for reliability and the aging fossil fuel fleet. The letter also criticizes the lengthy interconnection timelines for renewables, saying that resources take 6 to 7 years to connect. That aligns with findings from the Lawrence Berkeley National Laboratory, but may not take into account delays caused by developers changing project design, choosing to wait for state contracts or permits, or other factors out of the NYISO's control. NYISO spokesperson Kevin Lanahan said the grid operator has made significant improvements in recent years to reduce interconnection timelines. The targeted timeline for the current process is 1.6 years. 'We continue to meet with all stakeholders, including Earthjustice and EDF, through our open governance process to identify further improvements to interconnection while also maintaining reliability of the electric grid,' he said. ''Power Trends' suggests that the repowering of all aging resource types — renewable and fossil — be examined to determine the opportunity for capacity additions, efficiency, and carbon reductions,' Lanahan said. 'Doing so may help bridge New York to its climate goals.' Although the letter calls on Hochul to reject gas power plants, her administration has also warmed to the idea that gas will continue to be needed to meet demand from large new factories upstate and electrification of vehicles and buildings. Hochul officials referred to the NYISO's findings as part of the state's energy planning process, which modeled a pathway that involves continued reliance on fossil fuel energy and repowering of aging fossil fuel power plants. One scenario includes potentially relying on gas beyond the state's statutory 2040 deadline for zero emission electricity. 'The plan is talking about wind, solar, energy storage and also repowering aging combustion power plants as a way to move from here to there, as well as the contribution … of emissions free resources that are dispatchable like advanced nuclear,' said NYSERDA President and CEO Doreen Harris last month. The governor announced plans for NYPA to build at least 1 gigawatt of new nuclear power. — Marie J. French ICYMI: NJ TRANSIT CASES GO TO SCOTUS — POLITICO's Ry Rivard: A pair of bus accidents is prompting the Supreme Court to reckon with the scope of state entities' immunity from lawsuits. The court on Thursday agreed to hear two cases involving NJ Transit, which is being sued in Pennsylvania and New York state court after its buses allegedly hit people outside the borders of its home base Garden State. The high court sees a novel legal issue in the otherwise routine personal injury claims — which is partly of its own making. In 2019, it ruled 5-4 that one state cannot be sued in another state's courts without the first state's consent. The ruling left unclear where to draw the line on which state entities get such immunity, leaving open a question about entities like state hospitals, student loan servicers and public transit providers. Attorneys in the personal injury cases argued NJ Transit isn't actually entitled to a state's immunity, even though the transit agency was created by the state. NJ Transit said lawsuits should be brought against it in New Jersey state court because that's where it is based. HAPPY MONDAY MORNING: Let us know if you have tips, story ideas or life advice. We're always here at mfrench@ and rrivard@ And if you like this letter, please tell a friend and/or loved one to sign up. Want to receive this newsletter every weekday? Subscribe to POLITICO Pro. You'll also receive daily policy news and other intelligence you need to act on the day's biggest stories. Here's what we're watching this week: TUESDAY — The Department of Public Service holds in-person public hearings on Con Ed's rate hike request, 1 p.m., Borough of Manhattan Community College, and 6 p.m., Cortlandt Town Hall. WEDNESDAY — The Department of Public Service holds in-person public hearings on Con Ed's rate hike request, 1 p.m., Brooklyn Borough Hall, and 6 p.m., Westchester County Center. THURSDAY — The Department of Public Service holds in-person public hearings on Con Ed's rate hike request, 1 p.m., C.W. Mixon Center, 112-50 Springfield Blvd., Queens Village, and 6 p.m, Residence Inn — Marriott Meeting Rooms A and B, 1776 Eastchester Road, Bronx. Around New York — National Grid is installing smart meters in western New York. — Drone sightings of sharks shut down beaches in New York. Around New Jersey — Threats to the Delaware River watershed. — Court decision upholds compressor station project permit. What you may have missed PIPELINE TEST — POLITICO's Marie J. French: Gov. Kathy Hochul faces a major decision on a new pipeline supported by President Donald Trump to bring more natural gas into the New York City region. The Department of Environmental Conservation declared the application for a water quality permit for the Northeast Supply Enhancement Project complete on Wednesday. The pipeline would run 24 miles from New Jersey, across the Raritan Bay, to connect to the pipeline system in the Rockaways. The state told federal agencies last month it would make a decision on the project by Nov. 30, in compliance with an accelerated timeline under a Trump executive order. The DEC declined to schedule any public hearings at this stage, a move sure to spark pushback from environmental advocates. — National Grid filed an updated long-term gas plan Wednesday, highlighting reliability and cost savings for customers if NESE is built. 'National Grid is committed to fulfilling our responsibility to provide safe, reliable, and affordable energy to our customers,' said Sally Librera, president of National Grid New York. 'This addendum to our Gas System Long-Term Plan outlines critical investments necessary to ensure our gas network continues to operate dependably and supports the region's growing energy needs.' — NEW JERSEY LEG: The New Jersey Department of Environmental Protection said it has received land use and air permit applications from Transcontinental Gas Pipeline Co. for the portion of its proposed Northeast Supply Enhancement pipeline in the Garden State. A DEP spokesperson said most of the permits have a 120-day total permit review window but a Freshwater Wetlands permit does not have a statutory deadline. Several New Jersey towns have passed resolutions opposing the project, according to the Sierra Club, which also opposes it. — Ry Rivard PORTAL NORTH — Sen. Cory Booker (D-N.J.) toured the Portal North Bridge project on Wednesday morning along with top officials from NJ Transit and Amtrak. The bridge, which is part of the larger Gateway program and sits between Jersey City and Newark, will replace an old bridge over the Hackensack River that creates a chokepoint for trains moving around New Jersey and in and out of New York City. After a bruising fight over the megabill this week that Booker strongly opposes, he sounded a bipartisan note about the bridge. President Donald Trump green-lit the bridge during his first administration after lobbying from Gov. Phil Murphy and it's since gotten billions of dollars in federal money. 'I didn't stop and ask one hardhat whether they voted for me or not, whether they voted for which party or not,' Booker said following a tour of the construction site. 'This is about Americans working together to get great things done, to build projects that serve all of America.' The bridge is expected to be finished in fall 2027 with one track in service in 2026. — Ry Rivard DEP MULLS COASTAL RULES CHANGE — POLITICO's Ry Rivard: The Murphy administration is reconsidering parts of the sprawling package of coastal building rules meant to cope with rising sea levels. It's unclear what amendments the Department of Environmental Protection might make, but Commissioner Shawn LaTourette has publicly shown he's open to changes. At a recent public event, he said he was 'not allergic' to amendments. Lobbyists on both sides of the issue are now expecting a new draft of the rules. One of the biggest flashpoints is the assumed amount of sea level rise that developers should prepare for. The original draft rule assumes, using scientists' projections, that sea levels will rise by 5 feet by the end of the century — a major threat to development and tourism along the state's 130 miles or so of coastline. That concerns environmental groups supporting the rule, including the state chapter of the Sierra Club and the New Jersey League of Conservation Voters. Advocates from both groups are worried that revising the rule could delay its final adoption. Gov. Phil Murphy is term-limited and leaves office in January. 'We are concerned because the clock is ticking,' said Anjuli Ramos-Busot, the state Sierra Club director. Ray Cantor, a representative of the Business and Industry Association, has helped organize opposition to the rule package, including a plane that flew over the Jersey Shore last summer carrying a sign that warned about the rule. He's also waiting to see what the DEP does. 'Until we know what they are going to do, our concerns remain,' he said. PORTAL NORTH SETTLEMENT — NJ Transit paid $450,000 to settle a lawsuit brought by a former engineer who alleged he was fired for raising concerns about the design of the Portal North bridge, the most expensive project in the transit agency's history. Mohammed Nasin, who was the chief of construction management for the rail bridge, alleged in an early 2024 lawsuit that he'd found design defects, including track settlement issues. The settlement happened earlier this year, on Jan. 22, but was below the threshold that requires NJ Transit board approval. It was, however, disclosed to lawmakers in May after Sen. Michael Testa, a Cumberland County Republican, asked about the litigation during back and forths over the budget. In a written response to Testa, NJ Transit revealed the settlement. The agency said Portal North is 'on time and on budget, with Amtrak scheduled to take over construction of track, catenary and other systems in the coming months. The bridge project is scheduled to be completed in the fall of 2027. The Portal Bridge project has an excellent safety record.' John Chartier, an NJ Transit spokesperson, said in an email to POLITICO that the $450,000 included back pay and attorneys' fees. 'There was no admission of liability by NJ Transit and there was a confidentiality clause in the settlement,' he said. An attorney for Nasim, Paula Dillon, declined to comment. — Ry Rivard RATE HIKE PROPOSED — POLITICO's Marie J. French: Two major upstate gas and electric utilities owned by Avangrid want to raise customer bills more than 20 percent. New York State Electric and Gas and Rochester Gas and Electric filed their rate proposals on Monday, arguing they need to recover costs for storm recovery, unpaid bills and compliance with new in-state call center requirements. NYSEG serves nearly 1 million electricity customers and 270,000 gas customers. RG&E serves 386,000 electricity customers and 320,000 natural gas customers. The two companies are owned by Avangrid, whose parent company is Spanish energy giant Iberdrola. Utility rate hikes have become a political flashpoint as affordability remains top of mind for policymakers in New York. Gov. Kathy Hochul criticized the rate increase proposals. The two utilities 'must find a way to avoid these unacceptably high rate hikes,' she said in a statement. 'I am calling on the Department of Public Service to scrutinize these proposals to ensure these companies have the resources to keep our energy grid going but are not making additional profit off the backs of ratepayers.' BUDGET BASH — A pair of New Jersey Senate Democrats offered modest criticism of the state budget's diversion of $190 million from the Board of Public Utilities' clean energy fund to prop up NJ Transit and the state budget surplus. Sen. Andrew Zwicker gave a brief floor speech about the diversion before his chamber approved the $58.8 billion budget deal on Monday afternoon, which Gov. Phil Murphy signed late Monday night. Zwicker said he understood the move but that the state needs to use the clean energy money to help get clean air, clean water and better energy prices. 'It is critically important that we make those investments moving forward,' Zwicker said. In an interview, Sen. Bob Smith, who chairs the Senate's energy committee, said there is a 'tenuous connection' between clean energy funding and NJ Transit, since getting cars off the road is good for the environment. But that connection, Smith said, is 'not as strong as building new energy storage or building windmills or making our grid more flexible.' The senators were not alone or loudest to lament term-limited Murphy's final budget. Environmental groups also criticized the clean energy fund transfers, and both the attorney general and state comptroller, two members of Murphy's own Cabinet, slammed other non-environmental aspects of the budget. At a BPU meeting on Monday afternoon, none of the four members ventured to justify the money being taken from their budget, but they also did not criticize it. 'This budget is reflecting an additional diversion from the clean energy fund, but it is not reflecting a cutting of programs,' board President Christine Guhl-Sadovy said in the entity's sole remark about the budget deal. — Ry Rivard A BRIGHT SPOT — Both chambers have passed a bill to ease permitting of solar projects (S4100/A5264). 'We should put people over paperwork so we can get more solar on our rooftops and more savings for ratepayers in our wallets — that's a win for our environment, our electric grid and for all of us,' Sen. John McKeon, a Democrat, said in a statement. Smith also said that both houses have passed legislation to provide $60 million to help with battery storage projects. That bill comes after a recently-approved BPU battery storage program that is funded with $125 million in money from the settlement with Orsted, the energy company that canceled a pair of offshore wind farms in the state. — Ry Rivard
Politico
23-06-2025
- Politics
- Politico
All eyes on the Assembly
Good morning and welcome to the weekly Monday edition of the New York & New Jersey Energy newsletter. We'll take a look at the week ahead and look back on what you may have missed last week. ALL EYES ON THE ASSEMBLY — POLITICO's Marie J. French: Any chance that New York lawmakers will make significant progress on tackling climate change this legislative session rests with Assembly Democrats — a concerning prospect for frustrated environmental advocates. The Senate has left Albany for the session, but the Assembly plans to linger for a few days this week. Several environmental proposals remain pending, including a sweeping measure aimed at reducing plastic and packaging waste and two options to limit gas infrastructure. These are the same issues that remained in the final days of last year's session. Then, the Assembly pivoted to pass the Climate Superfund measure to charge fossil fuel companies for past pollution. This year, environmental groups are pressuring the Assembly to step up on implementing more policies to support the state's climate law. 'The Senate did their job last night — again — to do something about our high energy bills. We are paying too much for pipelines we don't need,' said Jessica Azulay, executive director of the Alliance for a Green Economy. 'They have three days to act, and we are watching,' Azulay said of the Assembly. 'If they don't act, we're all in for a long, hot summer.' The Senate passed two different gas transition measures — leaving the choice of whether to allow phasing out gas service for existing homes to the Assembly. The more modest measure is an elimination of the '100-foot rule' for gas. That rule requires other ratepayers to subsidize a portion of the cost of new hookups, reducing upfront costs for those getting new gas service. — The incremental step — the 100-foot rule elimination for gas — is poised to pass in the Assembly, according to two lawmakers. It was moved to the Ways and Means committee on Sunday afternoon, teeing it up for an eventual floor vote. — The packaging reduction measure appears to be falling short, and newly announced opposition from the statewide AFL-CIO may doom the bill this year. 'Unions are not opposed to improving New York's recycling system. But are concerned that this bill goes too far, too fast, and targets the wrong materials,' a press release from industry-backed New Yorkers for Better Recycling states. PENNEAST DECISION DRAMA — The New York Times' weekend dive into Supreme Court Justice Amy Coney Barrett leads with this example: 'Soon after Justice Barrett arrived at the court she began surprising her colleagues. Chief Justice John G. Roberts Jr. assigned her to write a majority opinion — among her first — allowing the seizure of state property in a pipeline case, according to several people aware of the process. But she then changed her mind and took the opposite stance, a bold move that risked irritating the chief justice.' The story doesn't name-check the 2021 PennEast decision, but our POLITICO colleague Alex Guillén reported at the time that, 'Legal experts have been gossiping that someone in the majority switched sides late in the game in the PennEast ruling.' — Ry Rivard HAPPY MONDAY MORNING: Let us know if you have tips, story ideas or life advice. We're always here at mfrench@ and rrivard@ And if you like this letter, please tell a friend and/or loved one to sign up. Here's what we're watching: WEDNESDAY— The New Jersey Board of Public Utilities meets and is expected to discuss electric utilities' plans to cushion rate increases, 10 a.m. Editor's Note: Want to receive this newsletter every weekday? Subscribe to POLITICO Pro. You'll also receive daily policy news and other intelligence you need to act on the day's biggest stories. Around New Jersey — Former BPU Commissioner Mary-Anna Holden in an op-ed: 'Instead of chasing artificial deadlines and politically popular incentives, our leaders should be focused on real-world physics and economics. This means revisiting the Energy Master Plan, rethinking electrification mandates and supporting a balanced generation mix that includes reliable, low-emission sources like natural gas and nuclear while continuing to develop meaningful renewables at a pace our infrastructure can handle.' — Tesla, for one reason or another, is storing lots of cars at the Quaker Bridge Mall. — Weekend blaze in Wharton State Forest is mostly contained. What you may have missed AIMING AT THE BOTTOM LINE — New Jersey lawmakers advanced a trio of bills Thursday aimed at cutting into utility company profits. The bills — S4260, S4304 and S4519 — all cleared the Senate Economic Growth committee. They each aim to reduce power companies' return on equity, which hovers around 10 percent in the state. Two of the bills basically urge the state Board of Public Utilities to rein in profits, but do not set any caps on companies' returns. A third bill, Sen. Andrew Zwicker's S4519, could quantitatively dent profits by removing a special .5 percent return companies are currently eligible for thanks to convoluted federal regulations. Some utilities get this special 'RTO adder' for building transmission projects if they have not formally joined a regional transmission organization, like PJM. Zwicker's bill would require utilities to join PJM, thus disqualifying their projects for the adder. For PSEG, the adder means that the company's return on equity for transmission projects is 10.4 percent, rather than 9.9 percent. The state's ratepayer watchdog, Brian Lipman, testified in support of the bill. He cited previous comments by outgoing FERC Chair Mark Christie who called the adder 'FERC candy' taken from ratepayers and given to transmission companies. The companies argue that without the incentive, there would be fewer transmission projects, which would hurt grid reliability. Joseph Checkley, the head of IBEW Local 94, which represents 3,300 PSEG workers, testified that the union will have less work and fewer apprenticeships if the bill passes. The union, utilities and some Republican lawmakers also said the bill doesn't address the root problem facing the state right now, which is lack of generation causing price spikes. Utilities are also concerned that the bill would force them to join PJM at a time when Democrats have been trying to get leverage over PJM. PSEG senior vice president Rick Thigpen said in a statement that 'we've heard many public officials criticize the shortcomings of PJM and this bill would force us to remain in that very RTO.' 'While not RTO specific, this bill would mandate that we either remain in PJM or pursue an option of joining a different RTO or creating one from scratch — two options that would be unnecessarily expensive for customers,' Thigpen said. 'This comes at a time when affordability is a top concern and we should be focusing on supporting our customers in the near-term and expanding electric supply in the long-term to enhance resource adequacy.' Zwicker, a Somerset County Democrat, modeled the bill on a recent move by Ohio to get rid of the adder. Also, realistically, he said New Jersey cannot leave PJM anytime soon. 'I would argue that we need leverage, true, but that leverage doesn't exist because we have no other option,' Zwicker said in an interview. While industry groups generally oppose all the bills aimed at curbing return on equity, PSEG said it supported Burlington County Democratic Sen. Troy Singleton's bill (S4260) that would prevent utilities from making 'excess profits.' 'Excess profits is not something we're in support of,' Thigpen told lawmakers during a lengthy hearing. Thigpen said the company would be willing to submit to new annual reviews of its rates. Right now, reviews typically accompany rate cases. Sen. Joseph Pennacchio, a Morris County Republican, wondered if the bill was even needed, since the BPU already examines utilities' finances. 'From my understanding, if the BPU is doing a good job, we're going to be saving nothing,' he said. Another bill without a hard cap, S4304, requires the BPU to allow utilities only the 'lowest reasonable return.' None of the bills increase the energy supply available to the state, which lawmakers from both parties agree is the only long-term solution to price spikes. Separately, a bill to explore the role that nuclear power should play in the state cleared the Senate Energy and Environment Committee. The bill (S220) was sponsored by Pennacchio and Sen. Bob Smith, the Middlesex County Democrat who chairs that committee. — Ry Rivard ASSEMBLY GETS OPTIONS ON GAS: The New York Senate is moving two options on efforts to limit the expansion of the state's gas system. One is a repeal of what's known as the '100-foot rule,' which requires other customers to subsidize portions of new gas hookups. If enacted, this would require developers to pay the full cost of building out infrastructure to connect to the gas system. Opponents argue this would raise new home costs and provide minimal savings to existing customers since selling more gas spreads out costs and the investments are paid off over decades. Supporters of slashing the subsidy say it runs counter to the state's climate goals and eliminates added costs from new hookups that contribute to rate increases. The other option is a scaled back but still ambitious planning proposal to begin dismantling sections of the gas system. This renamed NY HEAT bill, dubbed the 'Customer Savings and Reliability Act,' also includes changes to the 100-foot rule. But it goes much further, allowing the Public Service Commission and utilities to involuntarily remove customers from the gas system after 2030 with several guardrails including extensive public engagement, some support in the affected area, and alternatives being provided at 'no cost.' It's not clear whether Assembly Democrats will move this broader measure, although it has won over some lawmakers. Repeal of the 100-foot rule has even more support. Opponents of NY HEAT have pushed back on the updated measure. 'They simply want fewer people on the gas system, so they want to make it more expensive,' said Republican Assemblymember Phil Palmesano at a Thursday press conference. He promised a four-hour debate if Assembly Democrats bring the updated NY HEAT bill to the floor. Business groups are also opposed, despite specific protections for their gas service in the bill. 'As you remove users from the system, you increase the cost to users who have no choice,' said Ken Pokalsky, with the Business Council of New York State. Proponents of a planned gas transition say customers will switch to electric alternatives anyway. The proposed planning process offers a more managed shift than the status quo, with opportunities for savings from avoided gas infrastructure savings, they say. 'As my staff and I engage more closely with the Con Ed rate cases impacting our district, I can see more clearly than ever the urgency of ending the 100-foot rule,' said Democratic Assemblymember Dana Levenberg. 'We cannot hope to bring down utility costs while still requiring utilities to maintain vast networks of gas pipelines.' — Marie J. French BIOSOLIDS MORATORIUM ADVANCES: The Senate also passed a five-year moratorium on using biosolids — from wastewater and industrial sources — as fertilizer, topsoil or mulch. The bill also looks to be moving in the Assembly. Supporters are concerned about PFAS contamination from the waste, pointing to Maine, where farmland was contaminated by the practice. The state's operators of wastewater treatment plants are concerned. A five-year ban on spreading biosolids on land would remove a key option to dispose of the waste product, according to the New York Water Environment Association. 'There is inadequate capacity in New York State landfills for this volume of additional biosolids, as many have limited space and biosolids often must be mixed with other debris to provide structural integrity within the landfill operational cells,' the group wrote in a letter on the bill. — Marie J. French PSC GREENLIGHTS TRANSMISSION UPGRADES: The Public Service Commission approved more transmission upgrades linked to increased load, including from electric vehicle charging fleets and other plans. These 'urgent upgrades' need to get started more quickly than would happen if they waited for approval through a rate case, the commission decided at Thursday's meeting. The approved projects total $636 million in costs and will enable 642 megawatts of electrification upgrades — which Department of Public Service staff said was under the 'industry standard' cost of $1 million per megawatt. The 29 projects approved include $439.9 million for five Con Ed projects including to allow for electric vehicle charging at Zerega Avenue and Hunt's Point. Utilities had proposed 65 projects totaling $1.9 billion in costs. The projects that weren't approved are expected to be considered through rate case proceedings. 'We are not taking steps to subject ourselves to near-term risks in the future, we're looking to address long-term opportunities and by doing that we limit the costs, we make our investments more efficient and we make them most importantly more effective,' said Public Service Commission Chair Rory Christian at the meeting. 'This process increases transparency as well because frankly it's hard for many people to engage in rate cases. And this gives a one-stop opportunity for people to examine the various electrification efforts underway throughout the state.' — Marie J. French WAIVER GOODBYE — POLITICO's Alex Nieves: President Donald Trump moved Thursday to eliminate California's nation-leading vehicle emissions standards, upending strict rules that had become a template for other states, including New York and New Jersey, to realize their greenhouse gas ambitions. COLUMN ON WAIVER — POLITICO's Debra Kahn: It's a far cry from the bipartisan consensus that reigned when President Richard Nixon famously signed the Clean Air Act, which set federal air pollution levels for the first time but gave California permission to continue going further, owing to its decade-plus of vehicle emissions rules aimed at the smoggy Los Angeles basin. EMISSIONS DISCLOSURE CONCERNS — POLITICO's Marie J. French: Business groups are preemptively ramping up opposition to a climate emissions disclosure bill in the frantic last days of session. Led by the Business Council of New York State, industry groups are warning lawmakers against New York's version of a greenhouse gas reporting bill that's mired in legal and regulatory delays in California. There's some concern from opponents that the measure could become the last-minute 'environmental thing' lawmakers move before leaving Albany. ACE'S RATE RELIEF — Atlantic City Electric has a plan to help customers deal with rising power prices. The plan resembles one already submitted by PSE&G and is likely to mirror what other utilities in the state will do, though some of the actions may require Board of Public Utilities approval. ACE said it will stop disconnecting eligible customers' service from July through September. Gov. Phil Murphy previously suggested utilities take this step and PSE&G has already announced it would. ACE also plans to allow for longer repayment terms for residential customers, up to 24 months, and will submit a plan to the BPU that would give customers a deferred credit on their July and August bills that would be recovered without interest over a six-month period. 'While utility companies in New Jersey do not generate their own energy, do not set the price of electricity, and do not profit from the supply cost increases that took effect June 1, we fully understand that rising energy costs stemming from PJM's 2024 Capacity Auction are a challenge for our customers,' the company said in a statement. — Ry Rivard FALL SHOWDOWN SET — Republican Jack Ciattarelli and Democrat Mikie Sherrill are set to square off this fall in the New Jersey general election, setting up a showdown over Gov. Phil Murphy's clean energy legacy. The Associated Press called the races for both candidates Tuesday night, not long after polls closed. Sherrill's campaign has promised to push for 100 percent clean energy, the same goal Murphy ran on and won, and picked up endorsements from the Sierra Club and New Jersey League of Conservation Voters. Ciattarelli has blasted the governor's 'obsession with windmills' for driving up electric prices. Ciattarelli began his speech with criticism of Murphy's offshore wind goals. 'We will adopt a rational energy policy that lowers people's monthly electric bills and stops the Democrats from putting those damn wind farms off our Jersey Shore,' he said. He also criticized overdevelopment, something he's previously blamed the Sierra Club for ignoring. Whether wind will be a potent issue for voters, of course, remains to be seen. In her victory speech on Tuesday night, Sherrill framed her campaign as a test of President Donald Trump's policies, though she mentioned Ciattarelli's position on Hurricane Sandy relief and, in a statement after the speech, pledged to 'slash the cost of utilities' by taking 'control of our energy future.' In 2023, Republican legislative campaigns tried to make the environment a wedge issue, but largely failed when Democrats picked up seats in Trenton. Arguably some of those Democrats ran away from Murphy's clean energy plans and, in the years since, lawmakers have not had the stomach to turn the governor's clean energy goals into binding law. There are some reasons why energy issues may be more potent this year, though. The biggest is that energy policy choices have demonstrably and significantly driven up people's power bills. A $25 per month rate increase took effect on June 1. Democrats blame the regional grid operator, PJM; Republicans blame Murphy's focus on offshore wind projects that are dead or delayed. — Ry Rivard NEW GAS TRANSITION MEASURE: Democratic lawmakers introduced a new bill aimed at limiting the expansion and transitioning parts of the gas system. The re-branded new bill is the 'Customer Savings and Reliability Act.' The slimmed down, not-HEAT Act removes provisions around a 6 percent affordability target for energy bills and still eliminates the 100-foot rule to subsidize new gas hookups. For a neighborhood transition project to move forward after 2030, 50 percent of impacted customers would have to agree to get off the gas system. Installation of alternative equipment — electric heat pumps, hot water and cooking systems — would have to be at no cost to customers. Importantly, a utility can opt out of the process. 'It addresses people's concerns,' said Assemblymember Jo Anne Simon, the sponsor of the old NY HEAT and the new bill. 'A transition plan would have to be cheaper … we increase the number of hearings.' Simon said she's 'very hopeful' about the bill's prospects given the revisions. 'It will accomplish the goals of transitioning,' she said. Environmental groups including the New York League of Conservation Voters, Earthjustice, Alliance for a Green Economy and WE ACT for Environmental Justice endorsed the new version. The measure 'would reduce costs for ratepayers, advance region-specific utility planning to decarbonize buildings at a neighborhood-scale, and provide responsible, cost-effective alternatives for heating, cooling and hot water,' the memo states. NY HEAT's staunchest opponents are still opposed, particularly New Yorkers for Affordable Energy, which is backed by labor, pipeline companies and National Fuel. 'It's a blueprint for higher costs and unreliable service,' the group's opposition memo states. One of its members predicts layoffs if the 100-foot rule is eliminated, raising costs for developers seeking new gas hookups since they'll have to pay the full costs rather than being subsidized by other customers. — Marie J. French CORRECTION: Assemblymember John McDonald said local governments would be involved in a new process under a revised gas transition measure. 'It's common sense, moves in the right direction, including local governments and residents in the process,' McDonald said. BLET'S MAKE A DEAL — The union of engineers whose strike idled NJ Transit trains in May voted to ratify a deal that will raise wages to 'over $50 per hour,' the Brotherhood of Locomotive Engineers and Trainmen said Tuesday. The union said its members had overwhelmingly voted to approve the seven-year deal, which replaces one that expired before the pandemic. 'This agreement gives us the pay raises we needed, but also was done without a major hit to NJT's budget and should not require a fare hike for passengers,' union leader Tom Haas said in a statement. The head of NJ Transit, CEO Kris Kolluri, said in a statement he was pleased by the vote. The union's rank and file had previously voted down another deal, teeing up the strike that resulted in this agreement. — Ry Rivard
