HOCHUL DINES ENVIRONMENTAL LEADERS: Gov. Kathy Hochul took the pulse of New York’s environmental community on issues ranging from implementation of the state’s climate law to efforts to address coastal resiliency in an informal setting last week. Attendees were generally pleased to get a chance to share their priorities with the governor and her staff, and they were complimentary of the effort to bring them together. “It was just a more substantive conversation than you normally get to have,” said Adrienne Esposito, executive director of Citizens Campaign for the Environment. Esposito was among the 30 outside, non-administration attendees as Hochul hosted representatives of key environmental groups along with the heads of several agencies and authorities for dinner on April 29 at the Executive Mansion. Key executive chamber staff John O’Leary, deputy secretary for energy and environment and Ashley Dougherty, assistant secretary for environment, were also present. The heads of seven energy and environmental authorities and agencies, plus the director of the Office of Renewable Energy Siting, were in attendance: NYPA, LIPA, NYSERDA, DEC, PSC, Park and the EFC. “The governor was very present and really spoke with passion about her commitment to the environment, and it was really quite inspirational,” said Ned Sullivan, president of Scenic Hudson. “The administration was clear that … adaptation and resilience are part of management of state parks and are living laboratories for implementation of good sound land management practices that will be consistent with climate change.” Hochul and her officials solicited input on the rollout of the cap-and-invest program, which is poised to increase fossil fuel costs for consumers with a portion offset by a rebate and proceeds invested in the transition to clean energy. They also asked for feedback on implementation of the climate law, with some recognition of the hurdles faced in achieving those goals, and the future of the environmental bond act. “I think it’s important that the governor took the time to bring a number of environmental leaders together,” said New York League of Conservation Voters president and CEO Julie Tighe. “We weren’t being called in to be yelled at, which was how it would often happen in previous administrations.” One suggestion raised by some attendees was for Hochul to designate a “climate czar” to focus on the implementation of the Climate Leadership and Community Protection Act, which is nearing its five-year anniversary. “We have to understand that this isn't just the role of DEC or NYSERDA, that there are elements across all of these agencies,” said Peggy Shepard, co-founder and executive director of WE ACT for Environmental Justice. “If there's nobody there to teach old dogs new tricks, who's holding the hands of these agencies to get the implementation right?” — Marie J. French JOBS WANTED — POLITICO’s Ry Rivard: Gov. Phil Murphy's office must sign off on nearly every state worker hired, a practice that is receiving scrutiny after two cabinet secretaries acknowledged concerns about the process. It also raises questions about controversial hires Murphy or his top aides have tried to distance themselves from since the Democrat took office in 2018. Those include a known criminal, a former campaign aide accused of sexual assault and an employee who used antisemitic language. The governor’s office declined to comment on those specific cases. This level of oversight would appear to give the governor's office the power to micromanage every level of state government. It dates to a process put in place by then-Gov. Jon Corzine nearly a decade and a half ago, when a recession prompted a hiring freeze that required approval from the governor’s office for each new hire. But the practice has remained in place in the years since — yet was little known until a Senate budget hearing this week for the Department of Environmental Protection and the Department of Agriculture. Under questioning from Republican lawmakers, Agriculture Secretary Ed Wengryn said having to send every job finalist to the governor’s office is “clearly” holding up hiring. DEP Commissioner Shawn LaTourette called the process “dated.” “I think there may be some legacy bureaucracy that never remedied itself,” he said. TRANSIT BUDGETS MEET BURBS — POLITICO’s Ry Rivard: The nation’s largest mass transit systems are edging closer to solving their post-pandemic budget crises, but one thing is standing in their way: the suburbs. After several years of incomplete recovery from a massive ridership drop, federal relief money is running out for systems in New York, Washington, Philadelphia and other major cities. That means long-looming fiscal cliffs are at hand, prompting talk of massive fare hikes, devastating service cuts and new taxes or fees. But historic tensions between urban needs and suburban wants are colliding, as fixes for transit systems depend on approval from elected officials — and their voters — who live outside the central business districts most transportation systems were designed to serve. Speaking of … While New York lawmakers helped stabilize the MTA’s operating budget last year, state Comptroller Thomas DiNapoli is worried about growing risks to its capital funding because of delays, uncertainties and lawsuits around congestion pricing. A new report from his office worries about revenue from the congestion tolls failing to arrive as expected. The MTA hopes to begin collecting money in late June, though several lawsuits are challenging various aspects of the tolling plan. Under one bad scenario, the comptroller said there could be a $25 billion funding gap in the MTA’s next five-year capital program. “The MTA’s capital program is critical to winning riders back to public transportation and increasing fare revenue,” DiNapoli said in a statement. “When capital projects are delayed, repairs and upgrades are put off, causing parts of the system to deteriorate further.” — Ry Rivard END-OF-SESSION ROUNDUP — POLITICO’s Marie J. French: Environmental advocates have long to-do lists for lawmakers as the session draws to a close in Albany, but they’re competing with dozens of other legislative priorities. Many green groups are planning to keep the pressure on Assembly Democrats to pass a gas transition bill, but the distance between the Assembly’s budget proposal and what environmental groups want may prove too large to bridge in the scant weeks remaining. The session is slated to end June 6. Beyond NY HEAT, which would end subsidies for new gas hookups and enable plans to transition entire neighborhoods off gas, environmental groups are also pressing for movement on other bills. Conservation-focused groups are pushing for measures promoting wildlife crossings, making state buildings more bird-friendly and extending a tax break for green roofs in New York City. Environmental groups are variously prioritizing a transition plan for fossil fuel plants, waste reduction bills and measures to limit “forever chemicals” in some consumer products. “Some of them are low-hanging fruit that could’ve passed at the beginning of session,” said Adrienne Esposito, executive director of the Citizens Campaign for the Environment. “If they want an easy win but also a meaningful win right before the election, we’d like to see the Legislature pass some of the PFAS bills.” EXTREME HEAT DRIVES WORKER INJURIES: A new report from the New York State Insurance Fund shows that the risk of worker injury claims increases dramatically with higher temperatures, a growing concern as the planet warms up due to climate change. The analysis of 95,000 claims shows that a heat index over 80 degrees meant a 45 percent increase in the likelihood of claims. NYSIF is the state’s largest workers’ compensation insurer, providing coverage for employers to pay out claims when an employee is injured on the job. The fund is also launching a new voluntary climate action pilot for hospitals insured by NYSIF. If they commit to a net zero emissions by 2050 goal and enhance their resiliency to extreme weather, they’ll get a discount on their premiums. Premium credits of up to $1 million per policy are available, Gov. Kathy Hochul announced Wednesday. “This pilot program will incentivize hospitals to reduce their environmental impact and create a safer and healthier New York,” Hochul said. — Marie J. French DRIP DROP — New Jersey’s top environmental regulator, Shawn LaTourette, is worried congressional earmarks are depriving states of long-term money for water upgrades. The concerns, which LaTourette has harbored for a while, are shared by other environmental officials across the nation in red and blue states alike. The basic concern is that Congress is taking money meant for state-revolving funds for clean water and drinking water infrastructure and using it instead for earmarks. Some of those earmarks are for water projects, but, as of last year, New Jersey has received millions less for clean water projects overall each year since Congress brought back earmarks, according to the Council of Infrastructure Financing Authorities. “Congressional earmarks at the federal level nationally are being drained from the state revolving funds, which mean the congressionally-directed spending is reducing the overall amount of money the state of New Jersey receives and therefore our cost share is less but this presents a bit of a fiscal cliff for the state revolving funds,” LaTourette told lawmakers during a Tuesday state Senate hearing on his department’s budget. State officials across the country have been urging Congress to either stop diverting the money or come up with more money to make up for the money that has been diverted. In some ways, the issue is tension over who controls the purse strings. Members of Congress would likely argue they hear from their constituents about needs and the earmarks help fill them. The issue has been somewhat in the background because some state officials are likely loath to criticize specific projects in their states that receive earmarks. But, overall, the concern is that by not following formulas and more technical methods of handing out the money that states use, some communities are likely to be left behind and that the revolving funds, which issue low-interest or interest-free loans, will have far less buying power over time to help build more new infrastructure. — Ry Rivard RAW MILK — During New Jersey Senate budget hearings, Secretary of Agriculture Ed Wengryn said he’d be willing to have conversations about a bill allowing the sale of raw milk in the state — with certain conditions. The comments, in response to questions from Sen. Michael Testa, a South Jersey Republican, came with some caveats from the state’s top farm official but touched on a niche issue that tends to divide states and politicians with a libertarian streak from public health officials. “I look at how different states run their programs and I believe you can test and monitor enough to bring a safe product to market,” he said. “It's going to take time and investment by the state.” He called it a “consumer choice,” like eating raw oysters, that will only benefit a few of the state’s 40 dairy farms. Wengryn said he’d need to have a “long, deep conversation” with the state’s health commissioner too and joked, “I may get fired tomorrow now.” But, on a more serious note, he’s been asked during legislative budget hearings several times about bird flu being found in milk. Remnants of the virus are considered harmless thanks to pasteurization. “It seems to be whenever we discuss raw milk, something happens in that community,” he said. — Ry Rivard BIG WIND — Sen. Michael Testa provoked another strong reaction during an exchange with New Jersey Department of Environmental Protection Commissioner Shawn LaTourette about offshore wind. Testa pressed the DEP head on studies of offshore wind the agency is planning. LaTourette said the studies would not “undermine the scientific conclusion already” that surveying for offshore wind has not harmed whales. Testa then said that “some would argue” the DEP was like “Phillip Morris researching the effect of cigarettes.” LaTourette immediately took umbrage. “That’s sort of an offensive statement, right? I gotta call a spade a spade, senator,” LaTourette said. “You’re likening your public health and environmental agency to Big Tobacco? It’s a little offensive.” Testa said his remarks weren’t meant to be offensive. — Ry Rivard SENATE MOVES EARTH DAY BILLS: A belated celebration of Earth Day in the New York Senate means the passage of several environmental measures, with uncertain prospects for passage as the session careens toward a close. “Our words are only as good as our actions, which is why it's imperative that we modernize our energy systems, protect our clean drinking water and address climate change,” said Senate Majority Leader Andrea Stewart-Cousins at a press conference. Among the bills slated for passage today is the Climate Change Superfund measure, which would charge fossil fuel companies for historical emissions that have contributed to climate change. The measure would raise $3 billion annually for investments to adapt to climate impacts in New York, but it doesn’t have support from Assembly leaders or Hochul. “Taxpayers shell out hundreds of millions of dollars a year on just trying to mediate and repair damage caused by climate change,” said state Sen. Liz Krueger, a Manhattan Democrat who sponsors the bill. “We continue to pass our bills and we continue conversations and I'm sure they'll be moving on things too,” said Stewart-Cousins when asked about what conversations she’d had with Assembly Speaker Carl Heastie about the Climate Superfund bill and NY HEAT. “So we will get there.” Other bills the Senate plans to pass, versions of which passed last year and died in the Assembly, include state Sen. Pete Harckham’s measure (S2994) to phase out No. 4 fuel oil in buildings by 2028; his expansion of the food scrap donation program (S5331); state Sen. Nathalia Fernandez’s measure (S3328) to require more fence-line monitoring of air emissions at industrial sites; state Sen. Brad Holyman-Sigal’s measure (S1535) to require EV chargers at some state parking lots and garages and his proposal to ban PFAS in anti-fogging sprays and wipes (S992); state Sen. Leroy Comrie’s wildlife crossing bill (S4198); and state Sen. Jose Serrano’s bill to prohibit gas drilling on state lands (S724). A spokesperson for the Assembly Democrats did not provide a list of environmental bills planned for a vote in the chamber this week. — Marie J. French — The New York Assembly did pass the EV charging measure on Tuesday. The food donation measure slated for Senate passage is also on a key Wednesday committee agenda in the Assembly. ASSEMBLY MOVES ON WASTE: New York Assembly Democrats moved two bills to tackle New York’s waste problems out of key committees on Tuesday, but there are still hurdles ahead. Assemblymember Deborah Glick said she expected both the packaging reduction measure, previously the extended producer responsibility bill, and an expansion of the state’s bottle deposit system to get floor votes “at some point.” But the two bills still need to be discussed in conference and also has to go through the Rules Committee. The measures were not on an initial Rules agenda posted for Wednesday. During committee meetings, Republican Assemblymembers raised concerns about the cost to consumers of the proposals and the additional burden on wineries and liquor store owners that haven’t previously had to accept bottle returns. Glick emphasized that waste from packaging and un-recycled beverage containers is already costing municipalities money. “The notion that taxpayers aren’t already paying for the disposal of this material is erroneous,” Glick said. She noted that the efforts to reduce packaging are phased in over time. “There are stepped rates and dates,” Glick said during the committee meeting. “The less they use, the less they pay.” The Senate Democrats have not advanced the two measures as swiftly toward a floor vote. The bottle bill measure (S237) is still in the Environmental Conservation Committee and the packaging reduction bill (S4246) is in the Finance Committee. Sen. Pete Harckham, who sponsors the packaging bill, indicated there was still work on the bill to be done. “We are still making the sausage,” he said at a press conference on Tuesday. “We have made numerous changes. We are open to more changes.” Harckham said the priority is to get a bill that will be signed by the governor and implemented. “Plastic polluters should foot the bill for plastic pollution, not the New Yorkers suffering from plastic’s many negative health and climate impacts,” said Judith Enck, president of Beyond Plastics and former U.S. EPA regional administrator. The packaging bill faces opposition from the plastics industry, business groups, the National Supermarket Association, Teamsters Local 812, and others. A coalition of 57 groups that said it represents 100,000 jobs in the state sent an opposition memo dated May 7, raising concerns about the definition of toxic substances that would exclude materials from being recyclable, bans on more chemicals from packaging and the exclusion of “advanced recycling. The letter also raises concerns about the timelines in the bill. “There has not been a dialogue with stakeholders, cost analysis or completed market impact studies to determine the feasibility or practicality of these mandates,” the memo states. — Marie J. French ICYMI: PACK IT UP, PACK IT IN: Business organizations and environmental groups are locked in a battle over a measure that’s meant to reduce packaging waste. Environmental advocates who have pressed for the bill over the last several years contend it’s necessary to reduce landfill waste. Business entities, however, contend the provisions would be too expensive and onerous to enforce. Both sides are jockeying for an advantage in the final weeks of the legislative session, which is scheduled to end June 6. The Business Council pointed to a study from York University in Toronto that found the measure, if enacted, would lead to $1 billion in annual costs for packaging producers over the next five years that would be passed on to consumers. At the same time, the lobby group later today will release a survey conducted for its research arm that found a plurality of New Yorkers want a balance between environmental improvements and the cost for consumers. Ken Pokalsky, the group’s vice president, called the current packaging reduction measure “unworkable.” “It differs significantly from what other states have adopted, pushing too far and too fast on source reduction; it bans essential materials used in packaging and seems more punitive than productive,” Pokalsky said. “We believe New Yorkers want a more balanced recycling law. Supporters of the bill, meanwhile, are pointing to the potential savings for local governments. They estimate about 5 million tons of packaging waste is generated in the state every year. Environmental groups have enlisted the backing of local officials, including New York City Comptroller Brad Lander and Ulster County Executive Jen Metzger, and highlighted the cost of solid waste disposal. The price tag for waste disposal in New York City stands at $477 million. “This legislation will reduce plastic packaging while shifting the financial burden from taxpaying consumers to companies to collect, sort, and manage their own packaging waste,” Lander said. — Nick Reisman — A vote on the measure is expected today in the Senate Environmental Conservation Committee and in the Assembly’s Ways and Means and Codes, setting it up for a potential floor vote. The move to place the issue on a public committee agenda led Ross Eisenberg, president of America Plastic Makers, to accuse lawmakers of trying to “sneak” the bill through. “We urge the bill sponsors to pause immediately before the damage is done and improve the bill by adopting some of the innovative solutions they’ve received from experts across the state,” he said in a statement. BOTTLE BILL BATTLE: Civic groups, redemption center owners and workers gathered outside in the sun at the Capitol with bags full of bottles. The message in those bottles? Lawmakers should act to increase the deposit on returnable bottles and expand the law to cover more types of beverage containers — including hard cider, non-carbonated teas and other beverages, wine and spirits. Owners of beverage redemption centers, dealing with a flat handling fee per container since 2009, say they’re facing an existential crisis. Costs for labor and other expenses have risen while that fee, set in law, has remained the same. “Redemption centers are expected to run their business on the same margins as in 2009 and that’s unacceptable,” said Martin Naro, president of the Empire State Redemption Center. Cardboard gravestones listed redemption centers that have closed in recent years. One redemption center owner was dressed as the Grim Reaper with a plastic scythe and a death note for beverage centers from the state. — Marie J. French
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