Offshore wind binds submitted

Presented by Community Offshore Wind: 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.
Oct 21, 2024 View in browser
 
POLITICO Weekly NY & NJ Energy Logo

By Ry Rivard and Marie J. French

Presented by 

Community Offshore Wind

Good morning and welcome to the weekly Monday 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

OFFSHORE WIND BIDS SUBMITTED: New York’s energy experts now have the prices for 25 different proposals from four developers for offshore wind projects. The deadline for developers to submit prices was Friday at 3 p.m. NYSERDA is targeting a tight turnaround with award notifications by Nov. 8, although no public announcements are expected until 2025.

While information about the bids remains sparse, Community Offshore Wind announced it had submitted a colossal 2.8 gigawatt proposal as its largest submission. Community Offshore Wind is backed by National Grid Ventures and RWE. The mega-project, larger than the others submitted based on previously published information, would come online in phases with some power being injected to the grid as early as 2030 and full operation by 2032, according to the company. Community Offshore Wind paid a blistering $1.1 billion for the largest lease area in the New York Bight auction in 2022.

“That was always the plan, where we would be able to leverage the scale across that whole lease area, and deliver a multi-phase project, and so this proposal helps us to capture that,” said Doug Perkins, president of Community Offshore Wind. The company submitted multiple proposals and options, Perkins said. The larger project would likely deliver the lowest cost per megawatt hour of those proposals due to economies of scale. Community Offshore Wind would plug in the larger projects at both the Con Ed offshore wind hub in Brooklyn and the E.F. Barrett plant on Long Island.

The other developers proposing projects are Attentive Energy, backed by TotalEnergies, Rise Light and Power and Corio Generation; Vineyard Offshore, with backing from Copenhagen Infrastructure Partners; and Ørsted. — Marie J. French

MURPHY ON FATAL TRAIN ACCIDENT Gov. Phil Murphy called a fatal New Jersey Transit accident on Oct. 14 a “sad, tragic but fluke-ish situation.”

“I don't want to preempt an investigation of the specifics, but as a general matter, New Jersey Transit has never been as safe as it is today,” he said. “It was not that case when we first got into office. I'm proud of the fact that it's now, as I say, as safe as it's ever been.”

Because of an investigation and a pending lawsuit , the Murphy administration is not going into specifics. His office referred questions to the National Transportation Safety Board, which is known for thorough but sometimes lengthy investigations. While Murphy took a big political swing to fill a massive budget hole facing NJ Transit by raising taxes on large companies, he’s also still looking for $300 million in yearly cuts from the agency. It’s unclear whether the investigation will complicate attempts to make cuts to the agency’s operations. — Ry Rivard

NRC WANTS MORE HOLTEC INFO — The Nuclear Regulatory Commission wants more information from Holtec about its license termination request for Oyster Creek — a request regulators must agree to before the site can be released for future uses, other than dry cask storage. The NRC sent the company about 18 pages of follow-up requests for more information. The company now has six months to respond and there will be public hearings if and when the plan is accepted for formal review. A company spokesperson said the plan is “only required to be filed two years before” the termination, which the company scheduled for 2031, “so we will continue to provide more information to the NRC as a part of the process.” — Ry Rivard

HAPPY MONDAY 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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A message from Community Offshore Wind:

With the ability to deliver clean power from offshore wind to New Yorkers by 2030, Community Offshore Wind will strengthen local economies with $3B in economic activity; create hundreds of good-paying jobs; and invest $250M in the education programs and wraparound services New Yorkers need to pursue offshore wind careers, including the union workforce. At Community Offshore Wind, we’re empowering New York with wind. Learn more.

 

Here's what we're watching:

WEDNESDAY
— NYSERDA meets.

AROUND NEW YORK

— Estimate of state park economic impact: $5.6 billion.

— Bronx and Manhattan get water project money from bond act following funding drought.

Around New Jersey

— Wildfire watches follow drought warnings. A weekend blaze near Farny State Park was mostly contained Sunday evening.

What you may have missed

SOLAR SHINES ON: New York has achieved one of its near-term climate goals, installing 6 gigawatts of distributed solar a year ahead of a 2025 deadline in the state’s signature climate law. It’s a welcome bit of good news as other targets — for energy efficiency, storage and renewables — are not on track. Community solar has been the poster child of success for New York’s energy achievements, as relatively steady state subsidies through NY-Sun and declining costs have ensured the health of the industry. “Creating that certainty that allows the market to respond is a fundamental way we’re growing this market in New York,” NYSERDA President and CEO Doreen Harris said ahead of the announcement.

To mark the achievement, Harris was joined by other state officials, industry representatives and local dignitaries for a ceremonial ribbon cutting at a solar project in the town of New Scotland. Harris said efforts toward the state’s other climate goals continue. New York’s officials have indicated the state won’t be able to achieve a key 70 percent renewable electricity by 2030 goal. Some renewable developers have warned that backing away from the goal now would chill investor confidence in comments filed with the Public Service Commission. “What the review is intended to do is take a clear eyed view on where we are and what we can be doing to accelerate our progress. We’ve demonstrated this long term commitment to the renewable energy sector and that commitment will only continue to grow,” Harris said. “There’s nothing but upside when one looks at the load growth.”

Solar industry advocates and environmental groups have been pushing for Gov. Kathy Hochul’s administration to consider an even more aggressive target for solar, beyond the 10 gigawatt target currently set for 2030. They want Hochul to double that to 20 gigawatts by 2035. “We’re looking at those out years,” Harris said about that request. She said the State Energy Plan would examine the issue. “Go for it,” said Democratic Assemblymember Pat Fahy, a frequent advocate for environmental priorities who is running for state Senate. “I’ll worry about what kind of investment that takes later.” New York’s subsidies for community and distributed solar are funded by electric ratepayers. Fahy said the cost of climate change continues to rise with weather-related disasters. “We will either pay now or pay later,” she said. — Marie J. French

 

A message from Community Offshore Wind:

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BIG OIL TARGETED: Some progressive advocacy groups and some liberal politicians are pushing New York City’s prosecutors to take on fossil fuel companies. Public Citizen along with Fair and Just Prosecution released a memo Thursday that outlines a potential legal pathway under New York criminal law to charge fossil fuel companies with “reckless endangerment” for their role in causing climate change. The concept has backing from Sen. Brad Hoylman-Sigal, the chair of the Senate Judiciary Committee, Brooklyn Borough President Antonio Reynoso and New York City Council members Sandy Nurse and Carmen De La Rosa.

“The reason we have criminal law in this country is to protect us from dangerous actors that would do us harm,” said Aaron Regunberg, senior policy counsel with Public Citizen’s Climate Program.

Taking on Big Oil has been a focus for many Democratic prosecutors, including Attorney General Tish James, who unsuccessfully sued Exxon Mobil for fraud. California’s Attorney General sued fossil fuel companies for climate damages. Cities including New York have also sought compensation for the costs of increased flooding, hurricanes and other extreme weather.

But Public Citizen has suggested a new approach: The group wants New York City’s district attorneys to pursue a criminal case against “Big Oil.” That would make an argument from companies on federal pre-emption more difficult, among other advantages, Regunberg said.

“Prosecutors just have to show their conduct created a risk,” he said. “When you see how these companies conduct has already unquestionably increased the risk of catastrophic hurricanes, of lethal heat waves and other kinds of disaster, we think prosecutors really have everything they need to prove a case like this.”

The memo suggests prosecutors could charge fossil fuel companies individually or collectively – and even potentially their executives. A sentence of conditional discharge requiring changes to company actions or payment of restitution could result, the memo states.

The push comes as Gov. Kathy Hochul is considering a bill that would charge fossil fuel companies for their historic sales of oil and gas to pay for climate adaptation efforts. The Climate Superfund bill faces staunch opposition from the fossil fuel industry and New York’s leading business group. — Marie J. French

GRID RELIABILITY UPDATE — POLITICO’s Marie J. French: New York state isn’t expected to fall short of its electricity generation needs within the next decade — as long as large energy consumers that are expected to hook up to the system can pause operations when needed. That’s according to a nearly final report that looks at energy needs through 2034, which was released earlier this month by the state’s independent grid operator. The report also predicts there will be an electricity shortfall that needs to be addressed in New York City starting in 2033.

The New York Independent System Operator is responsible for the reliability of New York’s energy system and manages that by ensuring that enough generators — which include fossil fuel plants, nuclear, hydropower and the small but growing solar and wind sector — are available to provide enough power, even on the hottest or coldest days. The grid operator has been warning that reliability margins — the cushion of available generation compared to demand — are declining, and it has raised concerns about the slow pace of new resources coming online while gas generators retire. Shortfalls trigger requests for transmission or generation projects to fill any gap in power supply in order to avoid major outages.

An earlier version of the reliability report warned of a larger issue in New York City and a potential statewide reliability problem as new cryptocurrency mines, data centers, hydrogen producers and high-tech manufacturers were expected to juice demand while renewable development lagged. The forecast changed thanks to lower demand forecasts from utilities, as well as assurances from green hydrogen producers and crypto miners that they could shut down if energy demand spikes. “We've got to understand how they anticipate they're going to operate, and we've gotten some pleasing news that, yeah, they have some — certain facilities have some flexibility,” said NYISO spokesperson Kevin Lanahan.

GAS INVESTIGATION: The Public Service Commission took an initial step toward penalizing Central Hudson for a gas explosion last year in Wappinger Falls. The utility will have a chance to respond to the allegations as part of the PSC’s civil enforcement process.

— Also at the meeting: The commission got its usual update on winter preparedness of the gas and electric system. Additionally, the PSC also approved NYPA’s program for low-income electric customers that was part of last year’s budget deal. The governor’s office hailed the program, which will be aligned with Statewide Solar for All and the existing affordability program for low-income customers.

CONGESTION DELAY — A ruling on lawsuits aimed at restarting congestion pricing won’t happen before Election Day, after Hochul’s legal team requested a one-month delay on Tuesday.

Supreme Court Judge Arthur Engoron granted the request, which gives the governor until Nov. 15 to fully answer legal challenges to her “pause” of the tolling program.

The new deadline means the judge, who previously rejected the governor’s attempts to dismiss the lawsuits, won’t be in a position to order Hochul to move ahead with the tolls just days before the election. Such a ruling would have been an amazing development, since Hochul nixed the tolls amid worries about their unpopularity with voters.

The lawsuits were unveiled this summer by environmental groups, transit advocates and city Comptroller Brad Lander.

Attorneys for those groups did not oppose Hochul’s requested delay. A court filing said sides are not in settlement talks but the additional time may “allow the parties to identify ways to narrow the dispute and most expeditiously get the congestion pricing program back on track.” — Ry Rivard

COMMUTER COSTS — A new report by New York State Comptroller Thomas DiNapoli found that New YorkCity metropolitan area transportation costs rose by 56 percent over the past decade but remain below costs in other cities, largely because about half the city relies on public transit.

“City residents are fortunate to have a public transit system that operates around the clock to help keep some costs relatively low,” DiNapoli said in a statement. “City and state officials need to keep a close eye on transportation costs to ensure they remain affordable and help to offset higher costs of other household essentials.”

The costs — which include vehicle purchases, leases, maintenance, gasoline, insurance, and a range of other public and non-public transportation services — average out to nearly $13,000 a year per household and 14 percent of household spending. Nationally, transportation costs are about 17 percent of household spending.

Part of the reason for the increase: more car purchases and the use of taxis and other car services driving up the average costs. The share of households that used public transit for work declined in every borough from 2013 to 2023, with Brooklyn seeing a 10 point drop from 52 percent. — Ry Rivard

 

A message from Community Offshore Wind:

Empowering New York with wind means delivering real benefits for New York workers and families, and Community Offshore Wind will make it happen. Our project will reduce harmful emissions, creating healthier communities, and make New York’s electrical grid stronger and more resilient in the face of severe weather while providing the energy needed to support continued economic growth. Our investments in STEM education, job training and apprenticeships, and our strong partnerships with New York’s organized labor workforce, will prepare today’s workforce for the good-paying, family-sustaining clean energy jobs of tomorrow. And we’ll fund reduced-cost childcare and other supportive services to make sure New Yorkers have the resources to pursue careers in offshore wind. With the largest offshore wind proposal in the history of New York, Community Offshore Wind will bring unprecedented opportunity to New York. Learn more about our proposal here.

 
 

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