Gore criticizes carbon capture

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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

INCONVENIENT TRUTH — Former Vice President Al Gore is deeply skeptical of technologies to remove greenhouse gases from the atmosphere.

“It’s a fraud,” Gore said during a Saturday speech in New York City to his network of climate activists. “Seriously. They are way better at capturing politicians than they are at capturing emissions.”

He panned direct air capture and carbon capture and sequestration. He left open the chance for a technological breakthrough, but he portrayed both technologies as fossil fuel industry frauds that are not solutions to climate change.

The speech was at a Manhattan training conference for allies of the Climate Reality Project. New Jersey first lady Tammy Murphy is a member of the group’s board.

“Why are universities declaring carbon capture the most important thing to research?” he said during the two-hour speech built on his “Inconvenient Truth” presentation but updated with more climate-influenced disasters and personal outrage.

In an interview with reporters after the speech, Gore said if Donald Trump gets a second term, “technological tailwinds,” like the declining cost of wind and solar, will continue to push the “sustainability revolution,” but climate policy will stagnate, as it did after Trump first took office in 2017.

“Yes, the progress will continue,” Gore said. “But our chance to accelerate that progress to the levels that are necessary to really solve this crisis would be taken away if an anti-climate president came into office.”

Gore demurred on questions about the 2024 elections, like the effect of third-party candidates on presidential elections, given his experience in races with Ross Perot and Ralph Nader. “I don’t know,” he said.

But, asked about vulnerable Democrats shying away from President Joe Biden’s climate policies, he said, “I would say that there’s some things more important than winning reelection — and helping to ensure the survival of human civilization is probably one of them.”

Gore — who is younger than Trump and Biden but had to leave the Apple board because of age limits the company sets for its directors — joked about the presidential race, “I’m too young for this fight.” — Ry Rivard

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Around New York

— SCOPE: The Department of Environmental Conservation is finally inching forward on a late environmental impact statement for cryptocurrency mining operations in New York.

— Watertown treatment plant costs rise.

— Gannett examines the Hudson River’s past and future as a shipping corridor.

— FDNY makes criminal arrest of shop owner for improper e-bike battery storage.

— Monroe County legislators voted down funds for a study of replacing RG&E with a public utility.

— The New York Times discovers heat pumps.

— A new report finds limited access to solar incentives for low-income homeowners as the industry lobbies for refundable tax credits and a higher level of support.

— Water rates in the Buffalo area may be impacted by new EPA PFAS limits.

Around New Jersey

— A dead whale’s autopsy is out.

— Some Jersey Shore homes are at risk.

Here’s what we’re watching this week:

MONDAY

— The New Jersey Assembly Budget Committee holds a budget hearing for NJ Transit and other transportation agencies, at noon.

WEDNESDAY

— The New Jersey Board of Public Utilities meets at 10 a.m.

THURSDAY

— The Public Service Commission meets, 10:30 a.m.

What you may have missed

IF NOT THE BUSINESS TAX … New Jersey’s top transportation officials appeared before the state Senate Budget and Appropriations Committee on Thursday and fielded questions about Gov. Phil Murphy’s plan to fill the remainder of NJ Transit’s looming budget gap — the day after the agency raised fares to help close the shortfall.

Murphy’s plan is to raise taxes on the state’s largest businesses. The business community is gearing up to fight the plan, which faces an uncertain path through the Legislature, especially the Assembly.

In the Senate, at least one lawmaker seemed to be bracing himself for the business tax plan falling apart, and a search for other revenue. Murphy’s plan is a “very unpopular move, in some’s view,” said Sen. John Burzichelli, a South Jersey Democrat.

Burzichelli asked the state’s acting DOT commissioner, Fran O’Connor, about how much money the state turnpike authority was sending NJ Transit. About $400 million a year, O’Connor said.

“Is that the right number and is there more to be gotten there?” Burzichelli said.

Sen. Linda Greenstein asked if the state could get any money from New York’s Metropolitan Transportation Authority, which is raising money by charging drivers into parts of Manhattan, a congestion tolling plan Murphy has sued to block. O’Connor said that is something New Jersey had wanted but, “I’m assuming by our lawsuit, discussions didn’t go well.”

In an exchange with NJ Transit CEO Kevin Corbett, Burzichelli expressed support for sending the agency more money, but he wasn’t sure where the money would come from.

“What works for one state — it’s more really, frankly, of a political decision what’s acceptable,” Corbett said. Twice during exchanges with lawmakers, Corbett noted that sales taxes are used to fund transit systems in other places. One advantage, he said, is that sales tax revenue increases with inflation.

Whatever happens, Corbett made clear what would happen if his agency doesn’t get more money to close the $900 million budget gap expected to open up next summer: “very dramatic potential cuts.” — Ry Rivard

PFAS RULES A NEW REALITY: New federal regulations to limit the toxic “forever chemicals” in drinking water are likely to prompt significant changes in New Jersey water policy, increasing costs for ratepayers and prompting more local governments to sell their water systems to investor-owned utilities.

The Biden administration’s new regulation, as our colleague Annie Snider explains, represents the most significant upgrade in the safety of the nation’s drinking water in three decades and fulfills one of President Joe Biden’s key public health promises. But it comes with a $1.5 billion annual price tag nationwide, at least some of which will be footed by ratepayers.

New Jersey already had limits in place on the chemicals, known as PFAS and PFOA, but the federal limits are stricter. Utilities have five years to come into compliance with the federal rules. In New Jersey, utilities already have a sense of the problems they face, because of existing testing requirements. According to state data, dozens of community water systems serving several hundred thousand people have violated the state’s PFAS rules, though a number of them have come back into compliance.

New Jersey American Water, the state’s largest water utility, will likely have to upgrade all seven of its surface water treatment plants, company president Mark McDonough told POLITICO.

It’s unclear how much this will end up costing customers. The company is part of national legal action against companies that made the chemicals. Though the settlement dollars won’t be enough to pay for the cleanup. McDonough said, “We believe that perpetrators of the contamination should be held responsible for the need to clean it.”

The company also wants any federal or state money to help water utilities comply with the regulations to be available to investor-owned utilities. Sometimes private companies are ineligible for such government loans and grants. But in New Jersey, where private water utilities serve about 40 percent of the state, the issue will be particularly acute if federal money isn’t available and the costs are borne by ratepayers.

The regulation will also prompt more local governments to think about selling their public systems. PFAS regulations were among the looming costs that prompted the City of Salem, New Jersey, to sell its system to New Jersey American for $18 million. The company promised to create a “robust capital improvement plan” to deal with the chemicals.

Other towns may now consider making similar sales. “We’ve certainly had conversations with a number of folks about the challenge this creates,” McDonough said.

The state Board of Public Utilities, which regulates private water utilities as well as some public ones, is going to have to reckon with more utilities asking for higher rates to comply with the costs of the regulations. The board, for instance, in February approved a 16 percent rate increase of $120 per year for Middlesex Water Company customers in part based on the company’s need to pay for PFAS-related upgrades.

Gov. Phil Murphy praised the new PFAS regulation but is aware of at least some of the challenges the limits create. “While PFAS present a continuing challenge to New Jersey’s water supplies, added support from President Biden’s Bipartisan Infrastructure Law has enabled New Jersey to provide its water systems with the low-cost financing needed to make upgrades that will reduce PFAS exposure, protect the health of New Jersey families, and ensure that businesses who too rely upon clean water continue to thrive in the Garden State,” the governor said in a statement. — Ry Rivard

— Rockland County officials praised the decision by EPA.

NJ TRANSIT FARE HIKE — POLITICO’s Ry Rivard: New Jersey Transit’s board on Wednesday unanimously approved double-digit fare increases starting this summer and automatic annual increases for years to come.

The 15 percent fare increases will help close a $100 million budget gap in the coming budget year, but will plug only a small chunk of the $900 million gap that opens up next summer. The increases help avoid immediate service cuts and take effect July 1. But the transit agency’s long-term outlook remains unclear.

Gov. Phil Murphy has a plan to increase taxes on the state’s largest businesses to fill the rest of the budget hole, but the business community is gearing up to fight the plan, which faces an uncertain path through the Legislature, especially the Assembly.

GRID RATE HIKE AGREEMENT FILED — POLITICO’s Marie J. French: National Grid gas customers on Long Island and in New York City are set to be hit with more than 30 percent bill increases over three years. The Public Service Commission will review the increases included in a joint proposal released Tuesday. The rate hikes are supported by the utility, New York City, the Department of Public Service staff and the Environmental Defense Fund.

National Grid serves 1.9 million customers in Brooklyn, Staten Island and part of Queens and on Long Island. Rate cases are where utility regulators exercise their power to direct what investments should be prioritized and how much the company can make from their customers. This is Grid’s second downstate rate case since passage of the Climate Leadership and Community Protection Act. It includes millions in spending on maintaining gas infrastructure, including hooking up new customers, as well as funding affordability and efficiency programs.

— More reactions: Supporters of a measure to limit subsidies for new hookups and provide greater authority for the PSC to direct utilities to pursue neighborhood-wide electrification efforts highlighted the continued costs for new customers and associated investments. “The new National Grid rate hike proposal demonstrates why it is so important for Assembly Speaker Carl Heastie to come together with Governor Hochul and the State Senate to figure out how to finally pass the NY HEAT Act in full, and bring New Yorkers the cleaner heat and lower bills we need,” said Jessica Azulay, director of Alliance for a Green Economy, in a statement.

HELP WANTED FOR NEW YORK’S BIG CLIMATE JOB — POLITICO’s Marie J. French: New York is looking for a leader to help implement the state’s climate law — a monumental task with huge consequences for the state’s residents. Department of Environmental Conservation Commissioner Basil Seggos is slated to depart Friday. Sean Mahar, the current executive deputy commissioner, will step into the role on an interim basis, according to Gov. Kathy Hochul’s office. A national search is still underway to hire the next DEC commissioner after Seggos held the post for nearly nine years, Hochul spokesperson Katy Zielinski said in a statement.

Democratic Sen. Pete Harckham, who chairs the Environmental Conservation Committee, said the next commissioner will play a pivotal role in the climate fight. “It’s things like climate change but also other things like air permits, co-pollutants, environmental justice,” Harckham said. “You need someone who is going to be seen by all the advocates as a champion but also has management experience.” Selecting someone familiar with the complexities of New York’s laws and regulations, with established relationships, makes sense, Harckham said. “You can bring someone in from from out of state who can be brilliant, but it just takes them that much longer to learn the lay of the land,” he said.

Some of the names floated from New York’s deep bench of environmental expertise: Julie Tighe, Amanda Lefton, Sean Mahar, Carter Strickland and Lem Srolovic.

CAUCUS PUSHES ON ENERGY ISSUES: Ensuring affordability while taking bold steps to address the climate crisis that disproportionately impacts many communities they represent is a priority for the NYS Black, Puerto Rican, Hispanic and Asian Legislative Caucus. Assemblymember Michaelle Solages, a Democrat from Nassau County and chair of the influential caucus, laid out some of the ways lawmakers could support those goals in an interview last month with Playbook.

The central question facing policymakers is how to fund the state’s climate efforts while preventing unpalatable costs for consumers. “There are a lot of groups I see that are saying these laws are hurting New Yorkers. They’re costing too much. And it’s unfortunate because the cost of the climate crisis is already high in so many communities, including communities of color,” Solages said.

“We have high rates of asthma. When flooding happens, we can’t afford to rebuild, and so we get displaced. And so at the end of the day, the cost is so high. We need to ensure that we’re being smart about the transition, but also not afraid of being bold.”

Solages said the caucus supports the Climate Change Superfund measure, which seeks to charge fossil fuel companies for historical emissions from the fuels they sold, and a low-carbon fuel standard for the transportation sector. Some environmental justice groups oppose the clean fuel standard, questioning whether it would ensure emissions reduction quickly for the communities they advocate for.

Solages sees it as a beneficial policy for heavy-duty vehicles that will be on the roads for years to come with less impact on individual consumers. “It won’t cost the ratepayers at the end of the day,” Solages said. The low-carbon fuel standard in California has added to gas prices, although proponents argue there’s not a significant correlation between low-carbon fuel credit costs and gasoline costs.

New York has few levers to lower emissions from planes given federal preemption. Some airlines have supported the clean fuel standard in New York to create a market for lower emissions fuels that would dovetail with their own climate pledges. Solages said she lives near John F. Kennedy Airport with planes flying overhead. “I’m breathing in these dirty fuels, and if there was an opportunity to get a less dirty fuel, you know, I would take it,” she said. Hochul included a proposal to study a clean fuel standard for the transportation sector in her State of the State policy agenda. The Senate has passed the measure, but the Assembly has not advanced it.

The NY HEAT Act, the legislative measure to cap energy bills as a percent of income, would end subsidies for new gas hookups and expand the Public Service Commission’s authority to decommission parts of the gas system, is also a caucus priority. Solages said they’re urging some type of compromise or resolution to get it passed. The issue hasn’t yet been resolved in budget negotiations. “This is the time that we need to just urge our leadership to be brave about the climate crisis and look at ways that we can ensure that we are transitioning to electric, but also not creating a disadvantaged situation for the ratepayers,” Solages said.

The caucus is also supportive of the $200 million for low-income ratepayers to help with utility bills. They also back more funding for electric school buses to help districts with the up-front expenses. — Marie J. French

EV JUMP — Electric vehicle advocates are heartened by a jump in the number of EVs on the road in New Jersey, up by nearly 92,000 vehicles last year to 154,000 total — a figure that includes hybrids. That puts the state “within reach” of Gov. Phil Murphy’s goal of having 330,000 electric vehicles on the road by 2025, said ChargEVC, an industry lobbying group.

The figures are from just-updated data by the New Jersey Department of Environmental Protection.

“This trend puts the ambitious 2025 goal of 330,000 vehicles well within our grasp,” the industry group, led by CEO Pam Frank said in a statement.

Frank used the numbers to repeat warnings about state-imposed cost increases proposed by Murphy, including a new $250 annual registration fee he signed into law recently and a plan to end the sales tax holiday on EVs that is pending in his budget proposal. — Ry Rivard