GREEN GROUP TARGETS NY HEAT, CAP AND INVEST: The New York League of Conservation Voters has added shaping Gov. Kathy Hochul’s proposed “cap and invest” program to its priorities for 2024. The influential environmental group released their extensive 2024 agenda on Friday, teeing up some priorities for lawmakers and the governor as budget season begins. NYLCV wants to ensure the economy-wide program to limit emissions and raise revenue through auctions of allowances to pollute moves forward, said NYLCV president and CEO Julie Tighe. NYLCV will also prioritize NY HEAT, which targets gas system expansion and proactive downsizing, making it a top item for many groups after the environmental movement successfully pushed Hochul and lawmakers to pass a prohibition on gas in new buildings that takes effect in the coming years. The measure faces concerns from upstate and suburban Assembly Democrats. “Ratepayers are paying for expansion of a system that will be outdated in the not too distant future,” Tighe said. The Department of Public Service “can't change the way we're planning without a change in statute.” On the transportation front, NYLCV will push lawmakers to lift the cap on electric vehicle manufacturers' direct sales location for companies like Tesla, Lucid and Rivian. That’s a contentious issue which pits the environmental group against the influential dealership lobby and some labor groups. NYLCV is also again pushing a low carbon fuel standard, or clean fuel standard, for the transportation sector. That has the prospect of raising gas costs for consumers, a tricky proposition amidst debate over the “cap and invest” program’s impacts and policymakers’ laser focus on affordability. Tighe said the clean fuel standard and NY HEAT have the benefit of not hitting utility ratepayers. The clean fuel standard proposal also doesn’t envision added costs, beyond program administration, for the state. “One reason why a lot of the policies we're focusing on this year is not focused on ratepayers is because we know that there's a sensitivity,” she said. “I think that we'll see some policies passed because they can't come home and say they've done nothing to help the environment or fight climate change.”— Marie J. French — The renewable energy industry, represented by the Alliance for Clean Energy New York, also released their legislative priorities, which includes a sweeping bill from Energy Committee Chair Sen. Kevin Parker that covers a lot of ground. MTA VS. GOTTHEIMER — POLITICO's Ry Rivard: New York could end up collecting billions more in tolls than the state has previously said from its congestion pricing plan, one of the plan’s chief critics, New Jersey Democratic Rep. Josh Gottheimer, said Thursday. Gottheimer said math done by his staff — and strongly disputed by his critics — shows New York could rake in $3.4 billion a year in revenue from tolls. That’s far more than the $1 billion estimate New York officials have previously said is their goal to collect from commuters going into Manhattan’s central business district. The MTA, which has been sparring with Gottheimer for years, called his numbers "a joke" and for the first time released its own projections based on a tolling plan it advanced late last year, though the numbers lacked details. NYPA SOLICITS RENEWABLE INTEREST: The New York Power Authority wants to hear from developers and others about potentially partnering on new renewable projects. NYPA issued a formal “request for information” asking companies to share information about their operations and indicate whether they’d want to collaborate on renewable projects and what structure such a collaboration could take. They also asked questions about the feasibility of “domestic content” requirements, interest in agri-voltaics and existing state contracts. Responses are requested by February 7. “NYPA’s unique position as an innovative public utility allows us to bring our resource and experience to bear to build projects in timely, economical ways,” NYPA president and CEO Justin Driscoll said in a statement. “The results of this RFI will inform the Power Authority’s next steps, advancing a cohesive and efficient transition to a clean energy economy for New York State that will benefit all New Yorkers.” The RFI comes after NYPA released a required “conferral report” that lays the groundwork for additional work on a strategic plan over the next two years. The conferral report also committed NYPA to adding renewables equivalent to its peakers, which must be retired by 2030 unless there are reliability or emissions impacts. “NYPA intends to build out renewable generation equivalent to the capacity that will be lost by the ultimate retirement of its fossil fuel plants,” the conferral report states, citing a March 2023 report commissioned by the Public Power NY coalition that sought to block Driscoll from his post and crafted the original Build Public Renewables proposal. — Marie J. French MORE ON BEES — POLITICO’s Marie J. French: Gov. Kathy Hochul on Tuesday talked up a deal she brokered to soften proposed restrictions on a pesticide valued by farmers and abhorred by environmental advocates after being asked about “extreme” legislation passed by the Legislature. Hochul highlighted changes agreed to by the agriculture industry, environmental advocates and legislative sponsors to the “Birds and Bees” measure she signed in December. The measure is the first state law to target seeds treated with a class of pesticides known as neonicotinoids, which pose a risk to pollinators. “This was important legislation yet it was going to be very, very, very harmful to an industry which is one of our number one producers of output for the rest of the nation,” Hochul said at a New York City press conference on Tuesday. The proposal was opposed by the New York Farm Bureau, landscapers, golf courses and other industry groups. New York is not a top-ranked producer of corn, soybeans or wheat, according to federal data, which are the only seeds that will be restricted. The bill also bans the use of neonics for ornamental plants and turf, hence the concern from the golf and landscaping industry. OFFSHORE WIND CONTRACT NIXED — POLITICO’s Marie J. French: The developers of three of New York’s struggling offshore wind projects have terminated one of its contracts with the state and plans to seek a higher price for the Empire Wind 2 project. Equinor, along with its joint venture partner BP, has agreed with NYSERDA to cancel the contract for the project, citing rising costs due to inflation, interest rates and supply chain disruptions. The 1,260-megawatt project also faced challenges after a veto by Gov. Kathy Hochul that impacted its planned route to plug into the electric grid on Long Island. “Commercial viability is fundamental for ambitious projects of this size and scale,” said Molly Morris, president of Equinor Renewables Americas in a statement. “The Empire Wind 2 decision provides the opportunity to reset and develop a stronger and more robust project going forward.” New York’s early offshore wind projects, which electricity customers statewide will subsidize on their bills, requested higher payments than originally agreed to and were rebuffed by the state’s utility regulator last year. The fallout continues to threaten New York’s and President Joe Biden’s clean energy goals. DISADVANTAGED COMMUNITIES BENEFIT REPORTING: The Department of Environmental Conservation and NYSERDA released draft guidance on how state agencies will have to report on investments and benefits for disadvantaged communities. The deadline for comments is Feb. 23. The state’s landmark climate law required a minimum of 35 percent of the benefits of clean energy and energy efficiency investments to go toward disadvantaged communities — areas with high percentages of Black and brown residents, historically impacted by pollution, at risk from climate impacts and least able to adapt due to lower incomes. Defining what “benefits” means and how investments are tracked is a key issue for environmental justice advocates who pushed for the state’s Climate Leadership and Community Protection Act. — Marie J. French MORE WETLANDS PROTECTIONS: The deal on expanding wetlands protections struck as part of the 2022 budget negotiations is poised to start going into effect next year. DEC is seeking comment on how to implement the additional protections for wetlands of “unusual importance.” Specifically, the agency wants feedback on how to identify the wetlands that meet the criteria identified by lawmakers including vernal pools, those at risk of flooding or those of local or regional significance. DEC also proposed giving themselves 90 days to respond to requests to identify wetlands requiring protection and an appeals process for property owners to challenge their decision. — Marie J. French
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