internal political tensions in New York's energy policy

There are some elements emerging in New York State's energy policy and politics that are not easily reconcilable --- even though the government of the state is under the control of one political party. It is not one big happy family.

You can see these internal tensions just by reading the several paragraphs below taken from this week's POLITICO Weekly New York & New Jersey Energy.

Here is a short list of key points in play and some obvious conclusions:

• Governor Hochul is blasting the Trump administration for undercutting renewable energy development. Of course, as she must.
• The Governor counters this pull back of support by insisting that New York will press forward on its own to get as many wind and solar projects built while federal tax credits are still available.
• At the same time the Governor is advocating for new nuclear power development in New York because, a least, she seems to understand that New York will get left behind if it cannot supply ample and reliable baseload power for emerging high tech manufacturing and data processing enterprises.
• This is clearly a tacit admission that wind and solar power – no matter how much of it New York deploys – is never going to be adequate in meeting 21^st century power needs.
• Note that New York (NYSERDA) is hosting a second nuclear power “summit” in Syracuse --- happening yesterday and today.
• Undeterred, the most left leaning members of New York’s Congressional delegation are urging (demanding) that Hochul pull out all the stops to get wind and solar projects built in New York now and going forward, regardless of declining federal support, and to keep renewable power development as the foremost energy goal for the state.
• The Governor has enlisted the New York Power Authority (NYPA) to be the developer and owner of new nuclear power generation – in some kind of partnership arrangement with private nuclear power plant builders.
• Influential and politically aggressive green advocacy groups, and some key members of the state legislature, are dead set against any pivot toward nuclear power in New York.
• Green advocacy groups know that nuclear power is a threat to them. Nuclear power is the non-emitting power that has the reliability and capacity to displace, not supplement, most fossil fuel generation and wind and solar altogether. Expect to see hostility to nuclear power intensify in New York if New York politicians continue to move closer to it.
• And to double down, these same hard left green activists are insisting that New York shift away from private wind and solar developers, who move too slowly (or not at all without federal subsidies), and turn over the buildout of renewables to NYPA --- making renewable energy a fully state owned and operated function. They also insist without hesitation that the cost of this buildout is a cost that must be shouldered by New York ratepayers – without the benefit of any federal support if that is necessary. No complaints. No more excuses.
• While it is hard to know what any politician deep down really believes about anything, it is a fact that Governor Hochul (and Senator Schumer, by the way) are both facing political pressures -- that may become outright challenges -- from the hard left (and very green) flank of their own party.
• The hard green left is a potent political force in New York. No Democrat politician seeking election or reelection to statewide office can afford to alienate that constituency.
• So – we can expect to see plenty or pro-wind and solar rhetoric and gestures in New York between now and November 2026. That much for sure. How much real action we will see will ultimately come down to money. As federal subsidy money dries up to support renewables, what is the extent to which New York utility ratepayers will be expected, as a practical political matter, to make up the difference?

 

from Monday’s POLITICO Weekly New York & New Jersey Energy:

NYSERDA SEEKS MORE RENEWABLES — POLITICO’s Marie J. French: New York’s energy agency launched its latest request for new large-scale solar and wind projects on Friday.

NYSERDA requested bids for new projects that will get ratepayer subsidies when they’re built for supporting New York’s renewable energy targets. Gov. Kathy Hochul simultaneously ordered state agencies including the Department of Environmental Conservation, whose new wetland regulations have raised concerns from developers, to accelerate permitting for renewables.

Hochul’s administration is rushing to have more projects start construction so they can qualify for expiring federal tax incentives. President Donald Trump’s spending bill earlier this year accelerated the phaseout of subsidies for new renewables.

Wind and solar projects that don’t begin before July 2026 or enter service by the end of 2027 won’t get key tax credits that make the projects less expensive for developers to build.

“While the federal government takes us backward on energy policy, New York will not be thwarted in its commitment to clean energy,” Hochul said in a statement. “By directing our state agencies to move projects across the finish line, we are seizing every opportunity to leverage federal incentives, reduce costs for ratepayers, and build a more resilient, sustainable and reliable energy grid.”

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— New York’s two-day summit on advanced nuclear kicks off, 10:30 a.m., Marriott Syracuse Downtown. Anti-nuclear advocates hold a protest and “people’s meeting,” 11 a.m., 100 E Onondaga St., Syracuse.

*HOUSE MEMBERS NUDGE NYPA: The state’s Democratic House members want the New York Power Authority to press forward with even more renewables, urging support for a 15-gigawatt buildout. Reps. Alexandria Ocasio-Cortez and Paul Tonko organized a letter to NYPA offering praise for the authority’s efforts so far, bemoaning federal headwinds and urging the authority to step up even more.

“As a public entity leveraging public financing, NYPA is uniquely suited to weather expiring federal tax credits and tightening supply chains,” states the letter also signed by Reps. Dan Goldman, Jerry Nadler, Grace Meng, Yvette Clarke and Nydia Velázquez. “As you continue to expand upon your strategic plans in this and future years, we urge NYPA to continue ramping up renewable development to meet New York’s energy goals. We stand ready in Congress to support this effort.”

NYPA has already closed public comments on its updated draft strategic plan, which is scheduled for full board approval in December. The update doubled the authority’s pipeline of renewables projects to 7 gigawatts. But that expansion has not satisfied some advocates who originally campaigned for NYPA to get the ability to build new renewables. They say 15 GWs is needed to support New York’s behind-schedule goals. — Marie J. French

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THIS TIME YOU CAN CALL IT THE NUCLEAR SUMMIT: Last year’s energy summit in Syracuse wasn’t all about nuclear, but this year it is. Gov. Kathy Hochul’s administration is holding the “Advanced Nuclear NY Summit” in the upstate city about an hour’s drive from two of the state’s nuclear power plants and near the site of one of the state’s largest proposed private investment in its history — the Micron semiconductor manufacturing facility. Unlike last year’s publicly advertised event, announced with fanfare by the governor’s office a month ahead of time, this one has been shared less widely.

The event will feature remarks from top state energy officials, large energy users and nuclear technology companies. Discussions will “explore how New York can play a pivotal role in developing the U.S. supply chain and to educate and train a world class workforce ready to support advanced nuclear projects both domestically and internationally,” according to the event description. “The 2025 Summit will also examine in-state economic development priorities and how advanced nuclear will play a significant role in meeting those growing energy demands.”

The summit comes as New York is not on track to meet its renewable energy goals, set in the 2019 climate law. New York’s energy officials have pivoted toward nuclear as a low-carbon option as the renewable buildout falters amid federal antipathy and other challenges. Hochul has raised concerns about the cost of meeting the law’s targets and is focused on increasing energy supply as a way to bring down costs.

Last year the state released a draft blueprint for the technology as Hochul embraced the prospect. A master plan is still in the works. Earlier this year she ordered the New York Power Authority to build 1 gigawatt of new nuclear. The authority hasn’t yet released any request for proposals or information to seek partners for that project.

Green energy advocates who oppose nuclear energy due to concerns about waste, safety and environmental impacts got wind of the summit and plan to protest outside. “While Hochul hangs out with executives and lobbyists, we'll be outside hosting a People's Meeting on the truth behind nuclear energy: the threats it creates to our wallets, health, and planet, the disproportionate damage to Indigenous communities, and what we should be doing instead,” wrote the Alliance for a Green Economy in an email blast. A spokesperson for the governor did not confirm Hochul’s attendance at the summit. — Marie J. French

KRUEGER ON CLIMATE: FOLLOW TEXAS: New York Sen. Liz Krueger called on New Yorkers to fight back against the federal government on environmental policy, a running theme of this year’s Climate Week.

When it comes to states seeking renewable energy sources, there’s no better example than Texas. “I'm busy reading what other states are doing, and who we should be following on this issue is Texas,” Krueger said during an ACE NY Climate Week event Thursday. Texas is moving faster on solar, wind and geothermal, all the while moving off of oil and gas.

“Despite perhaps the politics of that state, the one thing they need to make sure they keep doing is building more sustainable energy,” Krueger said.

Krueger talked up her bill to end the 100-foot rule and new legislation to ease regulatory burdens on solar balconies.

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HOCHUL’S BILLION: Gov. Kathy Hochul’s Climate Week announcement on Wednesday was an offering of some new details about the $1 billion for climate included in the state budget passed earlier this year. That includes specific funding for three state campus “thermal energy network” projects that advocates had been pushing her to support. The budget included $200 million for these types of projects.

Hochul announced $68 million for the University at Buffalo, $50 million for SUNY Purchase and $22 million for Stony Brook from the Sustainable Future program. “It’s a really big announcement because this money is actually now going to go and flow, and we’re going to be able to start the next tranche of thermal energy networks on campuses,” said Lisa Dix, the Building Decarbonization Coalition’s state director.

“We’re moving money — $1 billion is nothing to sneeze at,” Dix said. “People need to see state leadership like this.” The governor also announced $150 million for a new program by New York State Homes and Community Renewal to help homeowners and renters make energy efficiency upgrades, including installing heat pumps.

Many of the other details in Hochul’s announcement about how that money would be spent were already in the law. She also specified that all $200 million, including for renewable projects, will be allocated to NYPA to assist with their efforts to build new solar and wind projects.

Some environmental groups praised Hochul’s movement of these funds. Others pushed for more. Renewable Heat Now called on the governor to boost the amount for the EmPower program, which is poised to scale back work due to a drop in funding by the state. NY Renews called for Hochul to release the cap-and-invest regulations, which Hochul has delayed with no clear timeline. The governor proposed the $1 billion as an immediate funding source for climate projects after punting on cap and invest. — Marie J. French