New York's climate mandates face uncertain future
And the state's utility regulator has an eye on New Jersey's recent actions to benefit ratepayers.
Good afternoon — It’s Wednesday and Data Privacy Day.
In today’s CapCon:
New York’s renewable energy mandates face an uncertain future amid multiple avenues that could lead to their suspension.
New York’s utility regulator is considering if the state could replicate actions recently taken in New Jersey to benefit ratepayers.
Democrats rallied at the state Capitol Wednesday for new immigrant protections after Alex Pretti’s killing in Minnesota but the timing is unclear.
State Senate Republicans released a report with their conference’s proposals to lower the state’s cost of living Wednesday.
Here’s what’s happening at the state Capitol Thursday, including a potential point of interest at tomorrow’s budget hearing.
A new bill seeks to index the state’s income tax rates to inflation.
Names in today’s CapCon: Gov. Kathy Hochul, Rory Christian, Peter Harckham, Amanda Lefton, Mikie Sherrill, Alex Pretti, Pat Fahy, Michelle Hinchey, Rob Ortt, Dan Clark, Betty A. Rosa, Kamar H. Samuels, Andrew Gounardes, Luis Sepulveda
🚨 Event with Gov. Kathy Hochul: We’re hosting a live conversation with Gov. Kathy Hochul on Feb. 2 next month in the Albany area. If you’re a paid subscriber to CapCon, you can find the link to RSVP below in today’s newsletter.
News and information on New York’s state budget and negotiations around it.
⚡ New York’s energy and emissions mandates could be derailed this year
At the start of the year, a new group called the Coalition for Safe and Reliable Energy quietly filed a petition with state energy regulators with an extraordinary request.
The coalition asked the state Public Service Commission to exercise a section of state law that allows it to suspend or modify the renewable energy mandates established by the state’s Climate Leadership and Community Protection Act.
That’s New York’s landmark climate law that requires the state to reduce its carbon emissions by transitioning away from energy generated from fossil fuels in favor of renewable sources.
That includes a mandate that at least 70% of the energy produced in New York come from renewable sources by 2030. The state has already conceded that it doesn’t expect to meet that deadline.
The coalition argued in its petition that utility companies will raise costs for consumers if they’re forced to finance new infrastructure to accommodate a rapid increase in the use of electricity, which is an expected result of the state’s strategy.
“Renewable energy development has not kept pace with generator retirements, which has resulted in declining reliability margins across New York, jeopardizing electric reliability and safe and adequate service,” they wrote.
That problem could be solved, they wrote, if the commission deploys a one-sentence safety valve that lawmakers tucked into the Climate Act when it passed in 2019.
That section of the law allows the commission to hold a public hearing to examine if the state’s renewable energy transition “impedes the provision of safe and adequate electric service.” If the commission finds that it does, it can suspend those mandates.
The coalition has an interest in that outcome. It’s comprised of several economic development, building and business groups, including the Business Council of New York State.
Their request entered its next phase Wednesday when the commission issued a notice soliciting public comment on whether such a hearing should be held.
Those are due by March 30 — one day before the state budget is due, though that’s largely coincidental because the standard public comment period is 60 days.
Public Service Commission Chair Rory Christian was asked about the petition at today’s state budget hearing on Gov. Kathy Hochul’s proposals related to energy and environmental conservation.
“We’re not at liberty to discuss those as they’re under evaluation and I don’t want to necessarily create a conflict that may adversely affect the future decision,” he said.
🔥 But Hochul could preempt that process with her own plan
When the state Legislature convened this year’s legislative session, lawmakers were informed that Hochul was interested in reevaluating the climate law’s requirements.
State Environmental Conservation Chair Peter Harckham used his opportunity to question state Department of Environmental Conservation Commissioner Amanda Lefton about Hochul’s plans on the law.
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