| | | | |  | | By Ry Rivard | | Presented by |  | | | 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.
| | | | WHAT ZELDIN MEANS FOR EPA — POLITICO’s Alex Guillén, Josh Siegel and Ry Rivard: Lee Zeldin had stopped by Anne’s Pancakes in Elmira, New York, during his unsuccessful run for governor in 2022 when the power blinked out. But the flapjacks kept coming — because the small-town diner’s stove was fueled by natural gas. “We were able to continue our wonderful pancake breakfast without electricity,” his running mate, Alison Esposito, told POLITICO last week. For the two Republicans, this was a lesson about American energy, said Esposito, who unsuccessfully challenged Rep. Pat Ryan (D-N.Y.) in this year's election. It’s a lesson that will mean a whole lot more now that President-elect Donald Trump has picked Zeldin to run the Environmental Protection Agency. Over the past four years, the Biden administration has been trying to wean the nation off fossil fuels, even as oil and gas production reaches record levels despite those efforts. A key part of that climate agenda flowed through EPA, which issued regulations to curb emissions from power plants, cars and trucks, and the oil and gas sector. Despite living in a cerulean-blue state, Zeldin has experience pushing back on Democratic policies that have driven up energy costs in New York, said Joe Borelli, the minority leader of the New York City council and a longtime friend of Zeldin’s. During his gubernatorial run, Zeldin pledged to block Democrats’ New York City congestion pricing plan, which Hochul halted earlier this year before resurrecting it after the election in a reduced form. PRICING MATH — POLITICO’s Ry Rivard: Gov. Kathy Hochul pitched her new congestion plan as 40 percent less expensive for commuters but promised it would still fulfill a state law requiring the tolls to support $15 billion in borrowing for the Metropolitan Transit Authority. Earlier this year, the MTA said a $15-per-car tolling plan would raise enough money to borrow the billions needed to pay for a multi-year infrastructure program. On Thursday, Hochul’s administration said it can do the same amount of borrowing with $9 tolls. There are at least two ways the Hochul administration appears to be making sense of the math. First, they can always raise tolls later to make up any shortfalls. Of course, this suggests the lower toll now is a bit of a wink and nod — or maybe even bait and switch. That said, the nature of tolls is to keep going up. (At practically the same time Hochul was releasing her plan, the Port Authority of New York and New Jersey was unveiling its own plan to raise tolls on its bridges and tunnels by 68 cents in January.) Second, the MTA and state could structure their borrowing in certain ways to make the $15 billion happen with lower upfront revenue. This hasn’t been fully explained, though more detailed plans submitted to the federal government for its approval or that might be presented next week to the MTA board may shed clearer light on how this could work. 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. Want to receive this newsletter every weekday? Subscribe to POLITICO Pro . You’ll also receive daily policy news and other intelligence you need to act on the day’s biggest stories.
| | | | 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: MONDAY — The MTA board and committees meet, with Gov. Kathy Hochul’s new congestion pricing plan certain to come up, starting at 9 a.m. — NYPA hearing on renewables, 10 a.m.-12 p.m., 6-8 p.m., Albany Capital Center, 55 Eagle St., Albany. — Rally of commuter members, labor and electeds calling on Hochul to build more renewables at 5 p.m., Albany Capital Center, ahead of a NYPA hearing on renewables. TUESDAY
— The Delaware River Basin Commission holds a special hearing on rough conditions, 1:30 p.m. THURSDAY
— The New Jersey Board of Public Utilities meets, 11 a.m.
| | | | The lame duck session could reshape major policies before year's end. Get Inside Congress delivered daily to follow the final sprint of dealmaking on defense funding, AI regulation and disaster aid. Subscribe now. | | | | | | | — RELEASE: NYSERDA on Friday “announced the issuance of a Request for Information to gauge market interest in activities to develop advanced nuclear energy technologies in New York State. Through this RFI, NYSERDA seeks to identify entities that are currently pursuing or interested in a potential role in advanced nuclear energy development. Responses will help inform next steps following the Future Energy Economy Summit held in September at Governor Kathy Hochul’s direction. Today's announcement demonstrates the State’s continued commitment to remain at the forefront of emerging technologies to support the advancement of renewable energy resources and foster continued economic development.” — FDNY creates task force about brush fires.
| | | | A message from Community Offshore Wind:   | | | | | — NJ.com: “A mile-long wall could keep the rising ocean out of this Jersey Shore town. But residents don’t want it.”
| | CONGESTION PRICING IS BACK, FOR NOW — POLITICO’s Nick Reisman and Ry Rivard: Gov. Kathy Hochul resurrected a politically risky toll plan Thursday to start charging drivers entering parts of Manhattan $9 during peak hours — an idea that drew derision from President-elect Donald Trump. Known as congestion pricing , the program is expected to be leveraged by the Metropolitan Transportation Authority to access $15 billion in bonds and pay for infrastructure projects for the region’s decrepit bus and subway system. “Years and years of disinvestment in the MTA ends today,” the Democratic governor said Thursday during a news conference at her Manhattan office, taking action after stalling the controversial plan in June to spare her fellow Democrats in the state’s battleground House races. In a statement released by his transition team, Trump blasted tolls’ impact on working people. “Not only is this a massive tax to people coming in, it is extremely inconvenient from both driving and personal booking keeping standards,” Trump said. “It will be virtually impossible for New York City to come back as long as the congestion tax is in effect.” Democrats, including New Jersey Gov. Phil Murphy and swing seat lawmakers, also remain opposed. Murphy portrayed Hochul’s decision — and any attempt by the outgoing Biden White House to green-light it — as a political mistake. “All of us need to listen to the message that voters across America sent last Tuesday, which is that the vast majority of Americans are experiencing severe economic strains and still feeling the effects of inflation,” Murphy said in a statement. “There could not be a worse time to impose a new $9 toll on individuals who are traveling into downtown Manhattan for work, school, or leisure.” In a feisty statement Thursday evening , the MTA responded to Murphy’s comments: “It’s hard to take advice from Gov. Murphy, who has overseen the total collapse of his state’s mass transit system,” John J. McCarthy, the MTA’s top spokesperson said. “New Jersey has been involved in the congestion relief process all along, even before they sued New York. If Gov. Murphy wants to mess around with transit, he should start by making the trains run, so his own constituents have a way to get to jobs, healthcare, and everywhere else from his side of the river.” MONEY FOR AMTRAK, NJ TRANSIT — Rep. Frank Pallone, the New Jersey Democrat, announced $112 million to replace aging Amtrak and NJ Transit infrastructure in New Jersey. The money, from Biden administration grants, includes $18.6 million to upgrade the signal system between New Brunswick and Elizabeth, $13.4 million for catenary modernization across a 23-mile stretch in northern New Jersey and $80 million for upgrades at the Kearny Substation. These kinds of projects are meant to prevent the disruptions commuters faced this summer that Pallone has pressed Amtrak and NJ Transit to prevent. Issues related to the catenaries (overhead wires that power trains) and other electrical issues were “major factors” in those disruptions Pallone told reporters during a call on Thursday morning. He is still awaiting results of an investigation into this summer’s Amtrak-NJ Transit problems. “I’m not sure there’s going to be a smoking gun,” Pallone said. “I think the answer is to replace the system.” — Ry Rivard
| | | | Policy change is coming—be the pro who saw it first. Access POLITICO Pro’s Issue Analysis series on what the transition means for agriculture, defense, health care, tech, and more. Strengthen your strategy. | | | | | |
SPEAKING OF TOLLS — POLITICO’s Ry Rivard: The Port Authority of New York and New Jersey is looking to raise tolls by $1 over the next three years.
The proposal would increase tolls by 25 cents on Jan. 5 and add further 25-cent increases in 2026, 2027 and 2028. The increases would apparently be in addition to automatic inflation-based hikes the authority already does. It’s unclear what the total effect will be on the toll. Right now, drivers pay $15.38 to enter New York during rush hour via the Lincoln and Holland tunnels, the George Washington, Bayonne and Goethals bridges, and the Outerbridge Crossing. The agency said the increases were necessary “to repair the damage done to the agency’s finances due to lost revenues during the Covid-19 pandemic and support ambitious capital spending for redevelopment and repair of Port Authority’s interstate transportation network.” DROUGHT WARNING — Gov. Phil Murphy declared a drought watch in New Jersey. The measure is intended to increase public awareness. “New Jersey is experiencing unprecedented weather conditions—as a result of climate change—that require us to take these precautionary measures now,” Murphy said in a statement. “It can be challenging to adjust our daily habits, but it is imperative that we all work together, heed the guidance to conserve water, and use the utmost caution outdoors to reduce the risk of wildfire as dry conditions continue statewide.” — Ry Rivard AI — A report to the governor on AI finds the technology “has both the potential to support environmental sustainability and to have an environmental cost, particularly from its high energy demands.” On the plus side, generative AI can be used “in ways that benefit the environment, such as supporting precision agriculture and yield management, improving the efficiency of low-emissions autonomous vehicles, and enabling smart rail operations for public transportation. At the same time, the energy and water consumption and/or use for computing, data storage, and training of AI models can be extensive. … The State remains committed to its goal of 100% clean electricity by 2035 and will continue to engage energy experts to inform action.” NJ PACT — 110 business groups, including the Business and Industry Association and Farm Bureau, are calling for the DEP to withdraw a coastal flooding rule. The letter, sent last week, calls the rule package “extreme, unworkable, and harmful to affordable housing, our commercial development sector, and urban development and redevelopment.”
| | | | 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. | | | | | | | Follow us on Twitter | | | | Follow us | | | | |
