Future of Energy: 5 takeaways from our panel in New York City

Did someone forward you this email? Sign up here for a 30-day free trial.

New York’s energy future is far from decided and, in some ways, is less clear now than it was six months ago.

Gov. Kathy Hochul and Democrats in the state Legislature approved changes in this year’s state budget to New York’s mandates to reduce emissions from fossil fuels and how those efforts are measured.

If you’re a regular reader of this newsletter, you already know the details. The mandates were originally put in place under the Climate Leadership and Community Protection Act of 2019.

New York will now work toward reducing emissions 60% by 2040. The original mandate to achieve a 40% reduction by 2030 is no longer binding.

But a lot can happen between now and then and the state doesn’t yet have a firm plan for how it will achieve the new 2040 target, which has an escape hatch built in to allow flexibility if it’s not considered feasible by then.

That’s why Hochul and lawmakers have also now written into law that the state will promulgate regulations in 2028 to achieve the 2040 target. That same year, the state’s Climate Action Council, is set to reconvene.

There’s a lot on the table in the energy landscape that could be considered as part of the state’s strategy to reduce emissions by then. But New York also already finds itself in a tricky situation in terms of its current energy mix.

Our panel of experts discussed where the state’s energy sector stands and where top policymakers could go from here at the Hearst Tower in New York City Thursday.

I was joined by New York Independent Systems Operator CEO Richard Dewey; New York League of Conservation Voters President Julie Tighe; Independent Power Producers of New York President Gavin Donohue; Business Council of New York State Vice President Ken Pokalsky; and Chris Casey, utility regulatory director of New York for the Natural Resources Defense Council.

Here are five takeaways from our panel discussion, which will soon be available on our podcast feed.

1. What could the 2028 regulations look like?

The big question Hochul will face in two years’ time is what regulations her administration will seek to chart a path toward furthering efforts to reduce emissions.

Part of why Hochul said she pushed for changes this year is because of a lawsuit brought against her administration over its failure to promulgate regulations that were due in 2024 to help achieve the 2030 mandate.

That means there’s a lot riding on whatever her administration comes up with 2028.