Everyone wins on 'birds and bees' deal

Delivered every Monday by 10 a.m., New York & New Jersey Energy is your guide to the week’s top energy news and policy in Albany and Trenton.
Jan 02, 2024 View in browser
 
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By Marie J. French and Ry Rivard

Good morning and welcome to the special New Year's weekly edition of the New York & New Jersey Energy newsletter. We'll take a look at the week ahead and look back on what you may have missed last week.

QUICK FIX

EVERYONE WINS ON BEES: Gov. Kathy Hochul’s commitment to brokering compromise was on display with modifications publicly embraced by both environmental groups and industry opponents of the “Birds and Bees Act.” The changes include a two-year delay of the ban on neonicotinoid seed treatments and potential exemptions for farmers.

 The bill targets neonicotinoids in the soybean and corn farming industries. Known more broadly as “neonics,” they are a nicotine-based substance often laced in seeds to avoid more dangerous forms of insect control like crop dusting. Advocates allege that neonics are the reason for a falling bee population, while farmers say that they can’t work without them unless they are given a viable substitute.

Hochul has been sensitive to the concerns of farmers, and the agreement reached will have the Department of Environmental Conservation implement restrictions in 2029, two years later than in the bill as it was passed last year. Farmers will also have an option to apply for waivers, which will be effective for two years before they have to reapply, according to the industry. “This marks a significant improvement over the current status quo, in which the agency exercises no regulatory authority over neonic seed coatings,” the Natural Resources Defense Council wrote in its press release celebrating the win.

Meanwhile, an agreement wasn’t reached on a bill aimed at stopping state procurements from supporting any tropical deforestation, which was vetoed after legislative sponsors refused to agree to major changes backed by Hochul. POLITICO’s Allison Prang reports that Sen. Liz Krueger plans to reintroduce the measure this year. “This is not some esoteric issue for tree-huggers — the climate crisis and the biodiversity crisis threaten the very survival of human civilization," Krueger said. "The days when New York’s leaders can pretend that what goes on in another part of the world has no impact on us are long past." — Marie J. French

HAPPY TUESDAY MORNING: And happy New Year! We hope your holiday break was filled with family, friends and fun. Let us know if you have tips, story ideas or life advice. We're always here at mfrench@politico.com and rrivard@politico.com. And if you like this letter, please tell a friend and/or loved one to sign up.

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BUS MANDATE CONCERNS: One major priority for education officials this session will be flexibility on the zero-emission school bus mandate, POLITICO’s Katelyn Cordero reports. Brian Fessler, director of governmental relations at New York State School Boards Association, told her many of his members have concerns with the state’s goals to transition to zero-emission school buses saying they would like more flexibility regarding the state’s mandate. All new buses must be zero-emission by 2027, and the state’s entire school bus fleet should make the transition by 2035. “I think for more school board members, the challenge is the transition itself,” Fessler said. “The cost associated with that transition, the logistics and really trying to make sure our members have the answers to dozens of major questions that have popped up.”

CLEAN TRUCK DELAY — POLITICO’s Blanca Begert: California vehicle regulators are delaying enforcement of their first-in-the-nation purchasing mandate for zero-emission trucks because they don't yet have the Biden administration's permission to implement it. The California Air Resources Board said Thursday that it will not enforce its Advanced Clean Fleets regulation, parts of which take effect Monday, until EPA either issues a waiver letting it implement its stricter-than-federal rules under the Clean Air Act or says that a waiver isn't necessary.

— New York and New Jersey are both following California’s lead on the planned restrictions on fossil powered trucks. Both states adopted California’s rules in 2021.

INTERNET SUBSIDY AT RISK — POLITICO’s John Hendel: Washington is battling over whether to keep the [broadband subsidy] program going — potentially cutting off more than 22 million households from a subsidy they’ve come to rely on. It launched with bipartisan support in 2020, but is now trapped in a partisan war between Democrats who want to renew it, and Republicans worried it will let President Joe Biden take too much of a victory lap during a campaign year. Known officially as the Affordable Connectivity Program, the federal subsidy… is predicted to run out of money by April. And because of its unique launch — initially, as emergency pandemic relief signed by former President Donald Trump and later codified in Biden’s infrastructure law — it’s a large federal benefit with no long-term funding mechanism and no clear way to pay for it going forward.

— Hochul’s administration has aggressively promoted this program and urged New York residents to sign up for it to reduce their costs. More than 1.6 million New York households are enrolled in the program, receiving about $50 million in subsidies each month.

Here's what we're watching:

WEDNESDAY

— New York lawmakers return to Albany to kick off the 2024 legislative session.

— A virtual public hearing is held by the Department of Public Service on the Canisteo Wind project, 5:30 p.m.

Around New York

— Migrant shelter fast tracked by the city will be located near a toxic Gowanus site, The City reports.

— NYSERDA answered some questions from offshore wind developers about its ongoing solicitation, providing more clarity about timeline and requirements for economic benefits. The proposal submission deadline is Jan. 25, 2024.

— New York City will blow the deadline on its 2025 climate law goals.

— Hochul signed…  a bill banning wildlife hunting contests, a measure limiting how long utilities have to charge customers.

— A coalition of climate activists and local elected officials pushed the Climate Change Superfund bill in Albany.

— A lawsuit against a landfill citing the state’s Green Amendment is headed to an appellate division decision.

— Mastic Beach tries for a managed retreat from rising seas.

— Erosion on Fire Island is threatening a substation.

— ENERGY MOVES: Anne Reynolds is joining the American Clean Power Association as vice president of offshore wind in January. She previously was executive director of the Alliance for Clean Energy New York. Her last day at ACE NY is January 9.

Around New Jersey

— RELEASE: PSE&G filed for a rate hike of about 12 percent as part of the first combined gas and electric rate case for the utility in six years. The full filing is here.

— The Wall Street Journal highlights the costs of removing PFAS from water systems, including for a New Jersey community.

— New flood disclosure rules for homeowners and landlords have been finalized.

— Gannett breaks down Superfund sites in New Jersey.

What you may have missed

RENEWABLE CONTRACTS CANCELED — POLITICO’s Marie J. French: About 60 percent of the onshore renewable projects awarded contracts to support New York’s climate goals have canceled their agreements with NYSERDA. Since early December, 52 additional proposed renewable energy projects totaling 4.4 gigawatts of capacity have terminated their contracts, NYSERDA president and CEO Doreen Harris told POLITICO.

MURPHY BPU NOMINEE SCRUTINIZED — POLITICO’s Ry Rivard: New Jersey Gov. Phil Murphy’s nominee to join the state’s Board of Public Utilities, Michael Bange, said he needs more background before forming an opinion about offshore wind. Bange said he has a “strong water background” after a career at New Jersey American Water but was unable to give any details about the energy industry in response to a pair of questions from Sen. Michael Testa (R-Cumberland). The board oversees the state’s power, gas, private water and telecom utilities and is charged with carrying out the bulk of Murphy’s ambitious clean energy plans, including the rapid construction and regulation of offshore wind farms capable of powering millions of homes in the next decade.

NJ LAWMAKERS PUSH BACK CLEAN ENERGY BILL — POLITICO’s Ry Rivard: New Jersey’s nation-leading clean energy legislation is dead this year, but there is a plan to get it done early in 2024. A bill to put the state on the path to get 100 percent of its electricity from zero-carbon sources by 2035 — the most aggressive clean energy goal of any large state — stalled last month and won't get a vote this year.

“It’s not ready," said the bill's sponsor, Sen. Bob Smith (D-Middlesex), who chairs the Senate Environment and Energy Committee. But, he said, “it will be one of the first things we do in the next session." It's the second significant piece of legislation that had been expected to see movement in lame duck but won't. This week a long-stalled bill to ban smoking in casinos was pulled and isn't expected to return this year. The legislative session expires early next month, meaning bills must be reintroduced and go through the legislative process all over.

DEC BLOWS CRYPTO REPORT DEADLINE — POLITICO’s Marie J. French: New York’s environmental agency missed the deadline on a report on the state’s cryptocurrency mining industry as computers hunting the digital currency continue to operate across the state. Two gas-powered cryptocurrency plants are running and other large mining operations are still expanding, posing potential risks for the reliability of New York’s electric grid. One facility is getting low-cost power from NYPA and is slow in meeting job targets it signed up for.

Environmental advocates secured a moratorium on fossil-powered cryptocurrency mining last year, but existing plants were exempt. They hope a Department of Environmental Conservation report on the industry’s impacts will spur additional limits on the electricity-guzzling operations. The two-year moratorium on new fossil-powered cryptomining that Gov. Kathy Hochul signed in November 2022 required the DEC to report on the industry late last month. The agency blew past the deadline and is still working on its design, according to a spokesperson.

MORE CAP AND INVEST INPUT SOUGHT — POLITICO’s Marie J. French: Gov. Kathy Hochul’s administration is fine-tuning the details of a program to limit planet-warming pollution and achieve the state’s climate targets. The state released details Wednesday of the “cap and invest” program that would require fuel suppliers and other polluters to pay through an auction for the ability to emit greenhouse gases. The number of allowances available would decline each year, pushing more costs onto consumers. The early proposal includes mechanisms to cushion costs for ratepayers, however, such as refundable tax credits. “We ultimately need a program that will generate revenue but also is workable for New Yorkers,” Department of Environmental Conservation Commissioner Basil Seggos said in an interview with POLITICO.

MTA PUSHBACK — POLITICO’s Ry Rivard: New Jersey Gov. Phil Murphy’s administration used “misleading attacks in the press and threats of litigation” rather than the proper channels to object to congestion pricing, New York’s Metropolitan Transportation Authority told a federal court. In its lengthiest legal response to a New Jersey lawsuit aimed at blocking new tolls, the MTA argued that New Jersey resorted to “revisionist history” in its lawsuit, which alleges in part that the state didn’t have enough chances to weigh in on the tolling plan.

 

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