ENERGY CHAIRS ON BUDGET TANGO: New York Assembly Energy Committee Chair Didi Barrett and Senate Energy Committee Chair Kevin Parker are both optimistic about a deal to address siting transmission projects — and see energy affordability as a top priority in this year’s budget. Both the Senate and Assembly one-houses included some version of the governor’s proposal on moving the Office of Renewable Energy Siting into the Department of Public Service and giving the office authority over transmission lines. They also both included additional farmland protections. “We want to make sure there's as little disruption as possible,” said Barrett, a Democrat from Columbia County, earlier this month. “We want to find that balance between protecting our valuable farmland and food supply and obviously reaching our goals.” Parker, a Democrat from Brooklyn, said moving ORES will “theoretically, hopefully, preferable” speed up generation and transmission buildout needed to support the state’s climate law. “I’m hoping having an agency specifically in charge of transmission and being able to hold somebody’s feet to the fire on the issue is going to move it along faster,” he said. “I’m also hoping this reduces the amount of red tape to approve transmission projects.” Parker said transmission projects will help address concerns about the grid’s reliability and resiliency as the state electrifies more to achieve the climate law’s targets. The Assembly included $200 million specifically directed to help low-income New Yorkers with their utility bills. Last year’s budget also had $200 million for bill relief, but the money ended up being split among all residential ratepayers, blunting the individual impacts. Barrett said some utilities are coming up at the cost caps for their energy affordability programs and the Legislature has pushed measures to increase enrollment. “We've seen a need for new participants to be part of this,” she said. Barrett said she wants to ensure assistance for utility bills is available to people who are not low-income but may be one financial blow — like a car accident or health crisis — away from facing hardship. “Without additional funding, this would basically necessitate reduction in the benefits for all of the energy affordability program recipients and it would weaken the program's effectiveness,” Barrett said. Although the Senate did not include specific funding for utility assistance, they did include the NY HEAT proposal with a 6 percent cap on bills. Parker said he supports including additional funding in the final budget. “Low and moderate income New Yorkers need help. The economy is still tough for them and utility prices have been going up steadily, oftentimes due to global forces we have less control over,” he said. — Marie J. French UTILITY BACKS ENDING NEW GAS SUBSIDIES: The state’s largest combined gas and electric utility, Con Edison, is urging lawmakers and Hochul to agree on repealing subsidies for new gas hookups in this year’s budget. Con Ed circulated a memo to lawmakers this week. The elimination of the “100-foot rule,” which requires all ratepayers to subsidize a portion of the costs for hooking up new gas customers, was included in broader proposals backed by the Senate and the governor. The Assembly has also indicated some openness to ending the subsidies. “Consideration of the elimination of the 100-foot rule subsidy is a common thread amongst all three budget proposals,” the memo obtained by POLITICO states. “Eliminating the 100-foot rule subsidy will further encourage customers to adopt clean technologies such as heat pumps for their heating and cooling needs, and will reduce investment in a system that needs to reduce its footprint and throughput for the state to achieve its climate goals.” Con Ed has seen a drop in new gas hookups of 50 percent over 10 years, but the utility is required to provide new service on request, according to the memo. “Con Edison strongly supports the Senate, Assembly and Governor coming together this year to take this major step,” it states. The utility first publicly backed the elimination of the 100-foot rule in a previous policy comment to lawmakers in March 2023, when the company also broke ranks with other utilities to support a mandate to electrify new buildings. Elimination of the 100-foot rule is just one part of broader measures backed by Senate Democrats and Hochul to expand regulators’ authority to limit the expansion of the gas system and even, eventually, downsize it. National Fuel, a gas-only utility serving western New York, has opposed the push. National Grid, which serves gas customers downstate and both gas and electric customers upstate, does not oppose repeal of the 100-foot rule, “but we need to make sure it is implemented in an orderly way that prioritizes safety and reliability and preserves customer choice,” said spokesperson Karen Young. National Grid, however, does oppose legislative changes to allow the removal of existing customers from the gas network. — Marie J. French ALL ROADS LEAD TO RHODES (AGAIN) — POLITICO’s Marie J. French: Gov. Kathy Hochul selected an experienced New York energy official as an interim leader for the Long Island Power Authority, to the consternation of some board members. Hochul put forward John Rhodes, who most recently served as chief program officer at the Department of Public Service, as acting CEO of LIPA. The board of trustees confirmed him effective immediately in the role on Wednesday, little more than a week after longtime CEO Tom Falcone announced his resignation. TOLLS APPROVED, FATE UNCLEAR: New York’s MTA formally approved new tolls for drivers coming into Manhattan’s central business district south of 60th Street. The 11-1 vote on Wednesday was as anticlimactic as it is historic. The future of the tolling program is being challenged in court and remains uncertain. Following decades of debate and years of planning, congestion pricing – daytime tolls of $15 for many cars and more for trucks – is meant to attack traffic and pollution in the city and raise billions to invest in the region’s bus and subway system. Transit authority CEO Janno Lieber said the board's action was a “big day for the MTA, huge day for the region.” But there are five lawsuits in federal court trying to undo the day's accomplishment. Federal judges in New Jersey and New York are expected to hear arguments in those cases and rule on them before mid-June, when the MTA hopes to start charging tolls. Ironically, the lawsuits, including one brought by New Jersey Gov. Phil Murphy, allege the tolls will increase local air pollution in some neighborhoods as trucks clog certain roads to avoid tolls. "This is far from over and we will continue to fight this blatant cash grab,” Murphy said in a statement. The MTA expects air pollution to decline overall. The tolling plan also still needs perfunctory approval from the Biden administration. — Ry Rivard NEW UTILITY REGULATORS CONFIRMED: Gov. Kathy Hochul’s first nominees for the state’s powerful utility regulator were confirmed during the Senate session on Wednesday. They are Uchenna Bright, the Democratic nominee who has previously worked for the Natural Resources Defense Council, and Denise Sheehan, a Republican who was previously commissioner at the Department of Environmental Conservation. Bright will take former Gov. Andrew Cuomo aide John Howard’s seat, while Sheehan will fill Republican Diane Burman’s seat. Bright during her confirmation hearing emphasized the costs of climate change and the benefits of taking action to fight it. “We are giving New Yorkers more options, not less when we’re thinking about this transition we’re expanding the options for people to choose equipment,” Bright said. Sheehan expressed confidence that the state can meet its near-term energy and climate goals, but said the long term ones are more challenging. Sheehan, who has consulted for the battery storage industry’s main state trade group, noted major decisions facing the commission about the 2040 “zero emissions” goal for the electric sector. The annual salary for a member of the PSC is $170,000 and it is statutorily a full time position. A previous commissioner and current chair of the Long Island Power Authority, Tracey Edwards, made more than $250,000 from consulting work while on the PSC. Asked whether there should be limits on outside income for the commissioners, Senate Finance Committee Chair Liz Krueger said she’d have to look at the current rules. “I think there should be some, I just don’t know if there are, and if there aren’t, what we should do about it,” she said. The two confirmed appointees have 30 days to sign their public officer’s oath, required under the state’s ethics rules. The next commission meeting is April 18. “In their new positions, Uchenna Bright and Denise Sheehan will play a key role in ensuring a safe, reliable and affordable energy grid for all New Yorkers,” Hochul said in a statement. “Both Commissioners will bring unique and invaluable expertise to the PSC at a pivotal time for New York’s energy future.” — Marie J. French — ICYMI: A Q&A with longtime Public Service Commissioner Diane Burman. HOLTEC’S $1.5 BILLION GUARANTEE — POLITICO’s Kelsey Tamborrino: The Biden administration plans to issue a loan guarantee of up to $1.52 billion to restart a shuttered U.S. nuclear plant for the first time — underscoring the growing bipartisan support for the carbon-free energy source. GREEN AMENDMENT V. CONGESTION PRICING — POLITICO’s Ry Rivard:Two of New York’s biggest environmental policies are on a collision course. Foes of congestion pricing, the long-awaited plan to reduce traffic in Manhattan by charging drivers, are aiming to block the tolls using a constitutional amendment designed to protect the environment. NEW UTILITY REGULATORS PASS COMMITTEES: Gov. Kathy Hochul’s first two nominees to serve on the Public Service Commission were moved through Senate committees with little fanfare Tuesday. The full Senate is expected to take up the nominations today, said Senate Finance Committee Chair Liz Krueger. She said she’s optimistic about a third nominee coming soon from the governor, as well. “The Public Service Commission clearly needs a full group of commissioners to move forward on its important business,” she said. Republican senators pressed both nominees on the pace of the state’s energy transition, its costs and potential risks from moving away from natural gas. They ultimately voted against Uchenna Bright, the Democratic nominee who has previously worked for the Natural Resources Defense Council, while supporting Denise Sheehan, a Republican who was previously commissioner at the Department of Environmental Conservation. Bright currently works at E2, a platform for a national bipartisan group of business leaders who want to take action on climate. She will replace John Howard, a Democrat and former aide to Gov. Andrew Cuomo. She said she worked on policies like energy efficiency, building performance standards, programs to reduce emissions from the transportation sector, and reports about the benefits of the clean energy transition including economic activity and jobs. “I’ve been honored to be dedicated to people and the planet, and to rigorous analysis,” Bright said. As a commissioner, she said she wants to realize the promise of the state’s climate law and stay focused on the opportunity presented by a “well-planned and orderly” transition to clean energy. Bright emphasized the costs of the climate crisis. “We in New York are leading the way in ensuring that we fight back, including by making it more affordable by making sure we fortify our systems,” she said. In an exchange about the risk of businesses leaving New York because of high energy costs, Bright said there are issues the commission balances. “I see it as a long-term goal that takes planning and that’s not happening tomorrow but is absolutely urgent,” she said. “We want to make sure that we’re using resources that are not exacerbating the climate crisis. … We want to ensure that of course that all our resources are as reliable as possible.” Sheehan, who most recently worked as an adviser for the state’s storage industry trade group, will take longtime Commissioner Diane Burman’s seat. Sheehan said she began her career in public service at the Division of Budget. She led the effort to establish the Regional Greenhouse Gas Initiative while heading DEC. During the hearing, Sheehan said she’d like to see more regional efforts to address climate change. “It was different, it was a bipartisan effort. It’s disheartening to some degree that we lost that somewhere along the way,” she said. “There are more benefits to addressing climate change than disadvantages.” Both nominees were asked whether the state’s energy goals enshrined in law in the Climate Leadership and Community Protection Act were realistic. The two nominees will serve six-year terms until 2030, when the state is required to get 70 percent of its electricity from renewables. The climate law also sets a 2040 “zero emissions” target for the electric sector and emission reductions targets including net zero by 2050. “I characterize the goals as aggressive and ambitious,” Sheehan said. “The near-term ones are achievable, the long-term ones we have more work to do.” Bright said the goals are “realistic and attainable.” — Marie J. French SUNRISE WIND APPROVED — POLITICO’s Kelsey Tamborrino: The Interior Department approved the Sunrise Wind project on Tuesday — marking the seventh approval of a commercial-scale offshore wind project under President Joe Biden and a significant development for a project that previously faced viability concerns. The approval comes as developers of offshore wind projects along the East Coast are contending with rising costs that prompted several cancellations and challenged the Biden administration's offshore wind goals. SOLAR TAX BOOST PUSH: The state’s small-scale solar industry is pressing for a larger tax incentive that would also benefit people without tax liabilities. Lawmakers including Senate Environmental Conservation Committee Chair Pete Harckham and Assemblymember Latrice Walker joined solar industry officials and environmental advocates pushing for inclusion of the proposal in the budget. “There is an inequity here that folks with higher earning can get incentives for solar,” Harckham said. The Senate included the measure — and several other incentives for renewable energy technologies — in their one-house budget. It would double the solar tax credit to $10,000 and make it refundable, as well as expand it to cover storage components. The Assembly included a proposal to exempt some storage projects from sales tax. Walker said that refundability is key. “This right here is a bill that helps out low-income families,” Walker said. “New York’s key residential solar incentive has not been accessible for those families for far too long. Making the tax credit refundable will correct that error and expand access to the benefits of solar energy for those who need it most.” She said the Assembly prefers not to include policy in the budget, although the proposal has clear fiscal implications. The solar industry estimates the revenue impact would be about $31 million annually. While the solar industry recently celebrated hitting 5 gigawatts of distributed solar in New York, with 1 gigawatt installed last year, installers are facing higher costs and declining incentives from NYSERDA. “Deployment is a lagging indicator, “ said Noah Ginsburg, executive director of the New York Solar Energy Industries Association. “This is not a subsidy for our industry, it’s an incentive for homeowners.” — Marie J. French MURPHY SIGNS GAS TAX — POLITICO’s Dustin Racioppi: New Jersey drivers will pay more for gas starting this summer after Gov. Phil Murphy signed a bill Tuesday replenishing the state's Transportation Trust Fund supporting bridge and road work. The trust fund's renewal came with none of the drama from eight years ago, when then-Gov. Chris Christie shut down infrastructure projects during negotiations with Democratic lawmakers. SUPPLY CHAIN RIPPLES — POLITICO’s Ry Rivard and Peder Schaefer: The early-morning collision that wrecked the Francis Scott Key Bridge in Baltimore on Tuesday is threatening deep disruptions to the economy and travel. NYPA BOOSTS GLOBALFOUNDRIES: The New York Power Authority board of trustees is expected to approve more than 100 megawatts of low-cost hydropower and market-purchased power for GlobalFoundries. NYPA’s board meets Tuesday, and the agenda includes the 90 MW allocation from the authority’s “high load factor” program, which avoids some utility surcharges. It also modifies the board’s previously approved agreement for 15 MWs of low-cost hydropower from the ReCharge New York program, lowering the associated capital investment and job commitments. GlobalFoundries is expected to invest billions over the next 10 years to expand its semiconductor manufacturing operations in Saratoga County. The NYPA’s board agenda says the company’s investments would support the creation of 980 new jobs and $6.7 billion in capital spending. NYPA’s “high load factor” program has been increasingly used by the state to support large economic development projects, including green hydrogen plants, in recent years. — Marie J. French RENEWABLE RECORDS: New York’s electricity system set two different records for renewable generation over the past few weeks, the state’s independent grid operator announced. For wind, a new record was set on Saturday, March 9, during the 1 p.m. hour when wind projects generated 12 percent of load, or 2,176 megawatts. For solar, the newest record was set at noon on Tuesday, March 12, when 3,832 megawatts provided 21 percent of power on the New York grid. That includes both rooftop and utility-scale solar. Overall, a majority of New York’s electricity still comes from fossil fuels. In 2022, only about 5 percent of electricity used came from wind and solar. Hydropower provided 22 percent; nuclear about 21 percent; and fossil fuel plants generated about 51 percent, according to NYISO data. “These renewable generation numbers are exciting and underscore New York’s notable progress in growing a portfolio of wind and solar projects that will continue to hit new records as we advance toward our Climate Act goals,” said NYSERDA president and CEO Doreen Harris in a statement. The authority is working to reset its portfolio of new renewable resources and is short of having enough projects under contract to meet the 70 percent renewable by 2030 target. New awards for onshore renewables are expected to be announced next month. — Marie J. French A WARNING ABOUT NJ TRANSIT FIX — POLITICO’s Ry Rivard: During testimony before New Jersey’s Assembly Budget committee, a top legislative staffer warned lawmakers about the volatility of the tax Gov. Phil Murphy wants to raise funds for New Jersey Transit. | 
