WHALE DEATHS MENTION CUTS OFFSHORE WIND SUPPORT — POLITICO’s Matt Friedman: A political fight over whale deaths and offshore wind appears to resonate with the public in New Jersey, with support for wind farms dropping substantially when whale deaths are mentioned in the same question. A Fairleigh Dickinson University poll released Thursday morning found that before whale deaths were mentioned, New Jerseyans reported being split on whether the state should allow the development of the offshore wind farms, with 39 percent opposed and 35 percent in favor. But when the question was posed with mention of the dead whales and dolphins that have washed up on New Jersey beaches in recent months, opposition jumped to 46 percent and support dropped to 28 percent. “The argument that the wind farms are hurting cute, smart animals just craters support,” said poll director Dan Cassino. “People concerned about the environment want to have green energy, but put that up against dolphins, and the dolphins are going to win every time.” REMINDER: There is no evidence of a link between the whale deaths and offshore wind work, POLITICO’s Ry Rivard reported. POWER PRODUCERS CONFAB: Concerns about how the state will meet its 2040 goal of “zero emissions” electricity continue to be raised by energy industry players, including fossil fuel plant owners and labor leaders. Policymakers, owners of existing power plants, including fossil fuels, wind, solar and hydropower, and developers of new projects and technologies aimed at meeting the state’s climate goals gathered in Albany on Wednesday. NYSERDA president and CEO Doreen Harris told attendees at the Independent Power Producers of New York, Inc., conference that planning for the 2040 goal needed to start. She cited the updated energy storage policy being developed by the Public Service Commission and also highlighted the state’s pursuit of federal funding for hydrogen. “We also need a tremendous number of resources that we don’t have advancing at scale across our state,” she said. “We have to keep our options open,” said Assemblymember Didi Barrett, who chairs the Energy Committee and sponsors an IPPNY-backed measure kickstarting a regulatory process to define “zero emissions” and set up incentives for technologies to meet the goal. Sen. Kevin Parker sponsors the measure (A6340/S2585) in that chamber and it is a top priority for IPPNY again this session. It could lead to support for hydrogen combustion, carbon capture and storage and renewable natural gas — all major concerns for environmental justice groups. Barrett’s open dialogue with IPPNY members was on full display. IPPNY president and CEO Gavin Donohue praised her engagement on putting “guardrails” around the New York Power Authority’s ability to build new renewables. Barrett has been criticized by supporters of the predecessor to that budget measure and attacked by some environmental advocates for introducing a measure that would change the state’s climate law accounting to shift the focus away from methane and open the door for a greater role for the natural gas system than contemplated in the state’s climate plan. Barrett also highlighted a measure (A2888) that would give communities more input on siting new renewables. “We’re not going to get to these goals by bullying people, by shaming people, by calling people names, by lying,” she said. “All of those things are happening now. I’ve been at the receiving end of all those.” The discussion including Barrett also touched on the enacted measure to ban fossil fuels in most new buildings. “I appreciate what the Assembly has done. … it got watered down,” Sen. Mario Mattera (R-Suffolk County) said about the ban. “The reality is we did not ban gas stoves,” Barrett said. “We really spoke about grid reliability in this budget. We are not forcing things on communities that aren’t ready to carry through with it. We have to work together to ensure the grid is reliable.” The IPPNY conference also included a panel on “dispatchable emissions free resources,” which the state’s grid operator and consultants for the state have identified a huge need for to meet the 2040 goal for electricity and 2050 net-zero emissions mandate in the state’s climate law. “While the state has created an extensive program to support renewable sources, it has not developed a similar system for alternative clean energy projects,” said John Murphy, international representative for the United Association of Journeyman and Apprentices of the Plumbing and Pipe Fitting Industry, on that panel. “Like other forms of energy, zero emission sources require public subsidies, especially in the early stages to become feasible.” Bloom Energy’s Ivor Castelino touted solutions like biogas-powered fuel cells that can capture gas from landfills and wastewater treatment instead of flaring it. Hydrogen options were also discussed. —Marie J. French LAWMAKERS SPLIT ON CAP AND INVEST ACTION — POLITICO’s Marie J. French: Democratic lawmakers have not yet settled on their role in New York’s plan to limit and charge for pollution across the economy. While Gov. Kathy Hochul’s administration works on regulations to implement the cap-and-trade program, dubbed “cap and invest” by policymakers, the Legislature hasn’t agreed on how or whether to shape the program’s rules. With a month remaining in the scheduled legislative session, it's not clear lawmakers will take up a broader role in cap-and-trade before the regulations are due to be finalized at the end of the year. “We institutionally believe there should be some guardrails,” said Sen. Pete Harckham (D-Westchester County), the chair of the Environmental Conservation Committee of the Senate Democratic position. “Timing is short; this is all moving very fast.” Democratic lawmakers, particularly from suburban and upstate areas, are sensitive to potential cost increases that will be driven by cap-and-trade. Fuel wholesalers and utilities are expected to pass the cost of purchasing the allowances on to customers. “That’s going to matter in my district. It’s going to matter across the state,” said Assemblymember Amy Paulin (D-Westchester County) about the potential increase in costs floated by the Hochul administration. “So, hopefully, they use what regulatory power they have to keep the rates as low as possible to protect as many utility ratepayers as possible — and this is an important step, so everyone is going to be monitoring.” FROM THE NOTEBOOK: "It was really about how do we make it so that people can still live in their homes, get to their jobs — but it's not free," said Kathryn Garcia, Hochul's director of state operations at a post-budget Citizens Budget Commission event when asked about the rebates for cap and invest. "Even when you start to think about giving some of it back to people to ease the pain, it's still going to be much higher. You will still be incentivized not to do things that use a lot of fossil fuels." OFFSHORE WIND TRANSMISSION DECISION INCHES FORWARD: The state’s independent grid operator is closing in on the selection of a project that will cost New York ratepayers statewide in support of achieving the offshore wind mandates in the climate law. The New York Independent System Operator on Monday posted a draft of its evaluation of projects that meet the Long Island offshore wind transmission need identified by the Public Service Commission. The commission decided in May 2022 that the costs of this bulk system project, unlike previous ones, would be divvied up solely based on electricity used by each utility rather than a majority being paid by the beneficiaries of the new transmission lines. That means upstate ratepayers are likely to see bigger increases on a percentage basis because they have lower bills than downstate customers, even though the costs are spread equally. The NYISO draft report, which is not a final decision on which project will be selected to move forward in the process, gives the highest rank to a transmission solution developed by Propel NY, a team that includes NYPA and Transco, which is owned by subsidiaries of the state’s investor-owned utilities. The NYISO staff recommends the organization’s board of directors select one of the Propel NY projects. The total cost of that solution, which involves three new high-voltage transmission lines on Long Island, is estimated at nearly $3.3 billion. The potential economic benefits, including reducing curtailment of future offshore wind projects and less need for upstate solar buildout, are on par with the costs, according to the NYISO evaluation. The draft will be discussed at a May 11 NYISO working group meeting. — Marie J. French FOSSIL FUEL TRANSITION BLUEPRINT PUSHED: Labor unions and real estate developers are joining environmental groups and others to back a bill that would require more planning and a transition for workers as fossil fuel plants are shuttered to meet New York’s climate goals. “While our organizations may not always agree on everything, we are united in steadfast support for this critical climate initiative,” states a memo issued by groups including the Utility Workers Union of America Local 1-2, NY Renews, the Real Estate Board of New York, NYLCV, Sierra Club and others. The Just Energy Transition Act, S2935, requires NYSERDA to study options to close, replace and redevelop at least 4 gigawatts of fossil fuel plants by 2030 with a focus on renewable options and priority for peaker plants that operate infrequently. The study would also include recommended options for a competitive program for renewable, energy storage and transmission options that can replace the plants and provide reliable backup power. NY Renews wrote in a memo that the bill “closes the door for false solutions to become a part of the competitive options to transition fossil fuel power plants.” The timeline in the bill is short, with a study due within 180 days and a new proceeding to kick off at the PSC 90 days later. The PSC would then be required to issue an implementation order, after public input and process, by July 30, 2024. State agencies are already working on a blueprint due this year on plans to retire New York City fossil fuel plants, after direction from Hochul in her 2022 State of the State. — Marie J. French
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