New Jersey offshore wind project faces turbine problems

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.
Sep 03, 2024 View in browser
 
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By Marie J. French and Ry Rivard

Good morning and welcome to a special post-Labor Day 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 in the last two weeks.

Driving the day

OFFSHORE WIND CHALLENGES — POLITICO’s Ry Rivard: Another New Jersey offshore wind project is facing significant uncertainty, again imperiling Gov. Phil Murphy’s clean energy and “green economy” goals. Leading Light Wind, a partnership of Invenergy and co-developer energyRe, is asking state utilities regulators to pause its project while it shops for turbines, the engines that help turn wind into electricity.

As a result, the backers of the largest offshore wind project ever approved in New Jersey do not know how they will generate the power they promised to deliver or how much it will cost. In January, the state Board of Public Utilities tried to reset the state’s then-ailing offshore wind industry by green-lighting ratepayer subsidies for a pair of projects that would provide enough power for 1.8 million homes. The 2,400-megawatt Leading Light Wind project was the larger and costlier of the two. A smaller, 1,342-megawatt project by TotalEnergies subsidiary Attentive Energy still appears to be on track.

STATE ENERGY PLAN KICKS OFF: Gov. Kathy Hochul is finally undertaking a new State Energy Plan after years of delay. The last comprehensive energy plan was completed in 2015 and it was only modified slightly to incorporate the state’s climate law in 2020. That 3-page amendment did not follow the extensive process required every four years by the energy planning law and Hochul’s administration has also failed to issue biennial reports required by the law. The focus for energy planning has instead been on the Climate Action Council, which developed a roadmap for achieving the state’s 40 percent emissions reduction from 1990 levels by 2030 target. The Public Service Commission has also taken a lead role in implementing the renewable energy target of 70 percent renewable by 2030, which Hochul’s officials don’t expect to meet on time.

“We recognize that the landscape is significantly different than it was when the State Energy Plan was last updated due to the growing clean energy market, the challenges created by the global pandemic, supply chain issues and increasing energy demands,” Hochul said in a statement. “Planning for the future necessitates a fresh look to gauge in real-time where we are and where we need to be, while maintaining current momentum and reconfirming our commitment to the clean energy transition.”

The current State Energy Plan process was codified in law under Gov. David Paterson in 2009, although several plans were issued prior to that under previous versions of the law and the concept dates back to before electricity deregulation. (Gov. George Pataki eliminated the state’s energy office that issued the plans for years in 1995, as he pushed to inject competition into the electric sector.) Today’s process calls for utilities, energy generators and state agencies to provide information about energy forecasts and plans, transmission assets, electric price forecasts for consumers, gas price forecasts and policies to achieve the state’s goals.

The board is primarily composed of Hochul’s officials, and she also appointed SUNY Chancellor John King. Speaker Carl Heastie and Senate Majority Leader Andrea Stewart-Cousins also get to appoint a representative.

The State Energy Planning Board will meet on Sept. 9 to release a draft scope of issues that will be covered in the plan and take public comments. The goal is for the board to finalize a plan in December 2025 with a 15-year outlook, which would presumably incorporate the state’s 2040 target for a zero emissions electric grid. A draft would be issued for public comment and hearings held in the summer of next year. — Marie J. French

HAPPY TUESDAY MORNING: 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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AROUND NEW YORK

— The New York Times investigates… secret” swimming holes in upstate New York.

Around New Jersey

— New Jersey was among states to petition for four PFAS to be listed as hazardous to restrict air pollution from the chemicals.

What you may have missed

UTILITY BILL CREDITS — POLITICO's Ry Rivard: More than a quarter million New Jersey utility customers will receive $175 off their gas or electric bills in September, the Murphy administration announced. The one-time bill credit will automatically be issued to 278,000 customers in low-income households that generally qualify for other forms of public assistance. Eligible customers will see credits on their gas or electric bill, but not both. This program is expected to cost about $51 million total and was approved by the state’s Board of Public Utilities in May, though some kind of payout plan has been in the works since 2022. Money for bill credits comes from the state’s clean energy program, which is funded by ratepayer fees.

RENEWABLE RESPONSE DROPS OFF: NYSERDA got bids from developers for just 38 large-scale renewable projects in response to the latest solicitation, according to an update quietly posted on its website. This is a drop from prior years and highlights the uncertainty for developers as the state struggles to reset its portfolio after many project cancellations. The bids total 3.5 gigawatts of capacity, according to the authority. The deadline for bids was Aug. 8.

The response this round is less robust than last year’s solicitation, which drew proposals for 57 projects — including 51 that had previously held agreements with NYSERDA — totaling 5 gigawatts. NYSERDA announced tentative awards in April to 24 projects totaling 2.4 gigawatts, some of which may be completed as early as 2025. Cost details have not been released. Contracts are expected to be finalized in the coming months.

Previous rounds, before the wave of cancellations, were also more competitive. The 2021 solicitation got bids for 56 projects totaling more than 6 gigawatts of capacity, with more than 60 bids received in 2020 and 42 in 2019.

The lackluster response could signal a challenge for keeping the state on track to meet the statutory 70 percent renewable by 2030 target — even three years late, as NYSERDA has acknowledged is more likely. Hitting that level in 2033 largely relies on offshore wind coming online, but it also calls for NYSERDA to procure about 5,600 gigawatt hours of new renewables each year until 2029 to account for possible attrition. The awarded project announced in April of this year fell below that level. — Marie J. French

MORE AIR MONITORING QUESTIONS: The Department of Environmental Conservation’s effort to engage communities on air pollution faced skepticism and concern from advocates who represent those communities at a meeting Tuesday. DEC published dense, difficult to navigate and interpret “Story Maps” with data from a yearlong, hyper-local air monitoring effort in 10 disadvantaged communities in New York earlier this month.

“If we're having trouble navigating our way through it, then our aunties are going to have trouble,” said Elizabeth Yeampierre, director of UPROSE, a Brooklyn-based environmental justice group.

The intent was to avoid an unwieldy document and allow community input on the priority areas to address pollution, officials said in response to concerns raised by members of the Climate Justice Working Group. “What we tried to do was to develop something that was more interactive,” said Adriana Espinoza, DEC’s deputy commissioner for equity and justice. “That way, it's not New YorkState producing a 200-page PDF that draws the conclusion about the air that you breathe every day. … I hear you, that maybe we overcomplicated it.”

The available data includes potential stationary sources of pollution, like wastewater treatment plants, dry cleaners and auto shops. It also highlights the major impact of mobile sources: buses, trucks and cars. But there’s not much analysis of what the largest contributors are or granular information that could inform future mitigation strategies. DEC in July told Manhattan community members that the initial data demonstrated poor air quality near coal- and wood-fired pizza ovens New York City has pushed to regulate, for example, but that’s not mentioned in the Story Maps. — Marie J. French

ELUSIVE EJ ADVISORY GROUP: Gov. Kathy Hochul’s administration says legislative leaders are the ones dragging their feet on establishing a long-delayed environmental justice advisory group linked to the state’s climate law. The permanent Environmental Justice Advisory Group was intended to create a “model” environmental justice policy for state agencies to implement — with a statutory deadline of January 2021. The group is required to have appointees from the governor, majority and minority legislative leaders, with representatives from community-based organizations, businesses with air or other permits, local governments and environmental experts or members of the public.

Nominations from the Legislature to the group are “outstanding,” DEC spokesperson Cecilia Walsh said in response to questions. Hochul has made “several” appointments, which have not been publicized, and the final members will be released when “all members of the group are empaneled,” she said.

Spokespeople for Assembly Speaker Carl Heastie and Senate Majority Leader Andrea Stewart Cousins did not respond to multiple requests for comment. — Marie J. French

THE STATION AGE — POLITICO’s Ry Rivard: A $50 million plan to overhaul an NJ Transit station in Bloomfield is being derailed by a state historic preservation council.

The Historic Sites Council recommended last week the state Department of Environmental Protection deny approval needed to rehab the century-old station.

Part of the dispute involves NJ Transit’s plans to make the station compliant with the federally mandated Americans with Disabilities Act. The council said the transit agency’s accessibility plans would interfere with the historic station, which the council praised “as a distinguished example of Proto-Modern architecture that includes Beaux-Arts elements.” The council has offered its own accessibility options.

 

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