Is Kathy Hochul Reassessing Climate Policies? Sounds Like She Realizes She's Been Sold A Pig in A Poke

Guest Post by Roger Caiazza of Pragmatic Environmentalist of New York.

This is an intriguing development.  On August 5 Governor Hochul announced a Future Energy Economy Summit that will “gather feedback on strategies to accelerate renewable energy deployment and explore the potential role of next generation clean energy technologies.”  In this post I offer some thoughts on the reason for the summit and possible outcomes.

Overview

The Climate Act established a New York “Net Zero” target (85% reduction in GHG emissions and 15% offset of emissions) by 2050.  It includes an interim 2030 reduction target of a 40% GHG reduction by 2030, a 70% electric system renewable energy mandate by 2030, and a requirement that all electricity generated be “zero-emissions” resources by 2040. The Climate Action Council (CAC) was responsible for preparing the Scoping Plan that outlined how to “achieve the State’s bold clean energy and climate agenda.” 

The Integration Analysis prepared by the New York State Energy Research and Development Authority (NYSERDA) and its consultants quantifies the impact of the electrification strategies used to reduce greenhouse gas emissions.  That material was used to develop the Draft Scoping Plan outline of strategies.  After a year-long review, the Scoping Plan was finalized and approved by the CAC at the end of 2022.  Since then, the State has been trying to implement the Scoping Plan recommendations through regulations, Public Service Commission orders, and legislation.   

However, recent reports have raised problems with the implementation process and Hochul has threatened to pause the process due to costs.

Does Kathy Realize She Was Sold A “Pig in A Poke” or Not? Source: https://www.pexels.com/@cottonbro/

Announcement for Clean Energy Technology Summit

The press release for the Clean Energy Technology Summit stated:

Governor Kathy Hochul today announced New York State will convene global experts to discuss the role of next generation clean energy technologies and strategies to accelerate renewable energy deployment while collectively supporting economic development in New York.

The “Future Energy Economy Summit,” to be held on September 4-5, will convene relevant state agencies and authorities, global and federal leaders, power producers, technical experts, labor groups, environmental groups, business groups and other interested stakeholders.

The summit will explore how next generation clean energy technologies can support the establishment and expansion of commercial and industrial enterprises, as well as how the state can accelerate the deployment of dispatchable emissions-free resources that will be needed to bolster its notable and ongoing efforts to scale renewable energy.

Note the summit is only one day.  Registration is the only activity available the evening before the meeting.  After the obligatory political bragging that I am not going to include, the press release went on to say:

The Governor has appointed New York State Energy Research and Development Authority (NYSERDA) Board Chair, Richard Kauffman, to serve as chair of the summit with contributions from leadership and staff from NYSERDA, the Department of Public Service (DPS), Empire State Development (ESD), New York Power Authority (NYPA), Department of Environmental Conservation (DEC), Department of Health (DOH), Division of Homeland Security and Emergency Services (DHSES) and Department of Labor (DOL).

I find it troubling that there will be so many agencies involved in the summit.  The heavy involvement of different agencies suggests that his may end up being no more than a dog and pony show to highlight the Administration’s commitment to fighting climate change. 

Among the real issues that have to be addressed are those raised at last December’s technical conference entitled Zero Emissions by 2040 held as part of the Department of Public Service Proceeding 15-E-0302. 

The conference confirmed the need for a new category of generating resources called Dispatchable Emissions-Free Resources (DEFR) but there hasn’t been any public progress addressing this resource.  The problem is DEFR technologies simply do not exist yet on a commercial scale, and it is very unlikely that the they will be available when needed to meet the arbitrary Climate Act schedule.  There are hints in the next few sentences that the summit might be intended to address this problem.

New York State anticipates major growth in electric demand in coming years driven by historic economic development projects and the increased adoption of electrification technologies in the building and transportation sectors.

Building upon New York State’s unprecedented and continued commitment to scaling up and accelerating renewable energy such as offshore wind, hydropower, solar and onshore wind statewide, a key component of the summit will be gathering further input on technologies including next generation geothermal, advanced nuclear, clean hydrogen, long duration energy storage, as well as other emerging technologies.

The input received will inform State strategies in the use of these technologies to support economic development across the state and provide context for the Public Service Commission (Commission) proceeding that is investigating technologies that can help meet the 2040 zero-emissions electricity system target established through New York’s Climate Act.

The technologies mentioned, next generation geothermal, advanced nuclear, clean hydrogen, and long duration energy storage are all potential DEFR solutions.  The following paragraph reinforces the idea that the summit is intended to address the need to implement currently unavailable DEFR technologies.

NYSERDA and DPS staff are currently developing technology and economic studies of diverse generation technologies that could complement the state’s wide scale deployment of renewable energy and play an expanded role in a decarbonizing economy. These studies will gather information and examine technologies ranging from small modular nuclear reactors to long-duration energy storage technologies to grid-forming inverters. The studies will complement the outputs from this summit and inform the State’s options for future generation including through the Commission’s proceeding.

So far, the NYSERDA and DPS studies like the Scoping Plan are long on ambition and short on facts.  Worse, there hasn’t been any meaningful attempt to engage stakeholders by responding to comments submitted.  I worry that this summit is part of the packaging for whatever the Administration has already decided to do.  We can only wait and see what happens at this meeting.

Unfortunately, resolving the technological challenge for DEFR development and implementation is not the only implementation problem.  The Green New Deal aspect of the Climate Act mandates investments in disadvantaged communities, which complicates implementation.  While I agree that all the factors described in the following paragraph are important, I am worried that there is no mention of a feasibility analysis.  The presumption of the state is that once they set a goal, it will happen despite the lack of any evidence that it is possible.

This summit will address advancing key factors to develop these technologies’ supply chain investments in New York, workforce opportunities, and how these investments can be leveraged to support large load growth and low-carbon economic development across New York while benefiting disadvantaged communities. The summit will also inform the development of a blueprint to advance issues and considerations for the deployment of advanced nuclear power generation and potentially leverage federal funding programs, including but not limited to, nuclear planning grants.

Summit Agenda

The only information on the summit itself is the following list of sessions:

• Welcome Remarks and Morning Keynote

• State of Technology

• Status of Next Generation Energy Technologies

• Luncheon Keynote

• Insights from Large Consumers of Electricity

• Global Perspectives: Representatives from other states and nations who are pursuing advanced nuclear installations.

• New Nuclear Blueprint: Vet Draft Blueprint as framework for New Nuclear Master Plan

• Wrap up and Nest Steps

Tim Knauss described the meeting for Syracuse.com. 

Two of the five panel discussions at the daylong conference will be focused on “new nuclear” technology such as small advanced nuclear reactors, according to a draft agenda.

The meeting also will include discussions about accelerating the deployment of renewable power sources like wind and solar. And there will be a focus on developing new power sources that can be dispatched when renewable power falls short.

Knauss interviewed Doreen Harris, president and CEO of the New York State Energy Research and Development Authority.  She said the summit “will explore a wide variety of technologies for achieving a clean system” and went on to say:

At this point, nuclear power is a more mature technology than many alternatives, she said.

“It is actually a more, I’d say, advanced area of commercial viability, as opposed to some of the other resources that we see on the technical horizon at this point,’’ Harris said in an interview Monday.

NYSERDA plans to develop a roadmap for the potential deployment of new nuclear power, similar to the Offshore Wind Master Plan the authority crafted to guide development of that resource, Harris said. NYSERDA plans to gain expert feedback at the Syracuse summit to help prepare a policy for new nuclear power, she said.

“New nuclear is a resource that we see strong federal support for,’’ Harris said. And frankly, we see deployment of these technologies — such that it is, I would say, ripe for consideration. Is this a resource that New York would consider? But it’s not to say we have the answer to that.”

Discussion

Three recent reports all have suggested that reassessment is necessary.  The Public Service Commission (PSC) Clean Energy Standard Biennial Review Report found that the 70% renewable energy goal will likely not be achieved until 2033.  The New York State Comptroller Office Climate Act Goals – Planning, Procurements, and Progress Tracking audit found that the PSC and NYSERDA implementation plans did not comprise all essential components, including “assessing risks to meeting goals and projecting costs.”  The New York Independent System Operator (NYISO) 2023-2042 System & Resource Outlook described issues that threaten reliability and resilience of the current and future electric system.

As a result of these findings and perhaps pressure by the business community, the governor said the state’s climate goals are something she “would love to meet, but also the cost has gone up so much. I now have to step back and say, ‘What is the cost on the typical New York family?’ Just like I did with congestion pricing.”  The Department of Public Service Proceeding 15-E-0302 may also be influencing the Governor and precipitating the need for the summit. 

The fact is that reality is an energy policy that was promulgated by motivated politicians without a vetted analysis of the scope and schedule was never going to be successful.  This summit might be an attempt to provide political cover to broach the need for schedule adjustments and to consider alternatives that have thus far not been considered seriously in the implementation process. 

At the top of the list is the nuclear power that is the only technology that has a proven record of deep decarbonization success but most certainly cannot be deployed on the Climate Act schedule.  It will be interesting to see how legislators, the Big Green NGOs, and the renewable energy shills react to this development.  Will they acknowledge that nuclear is necessary for the Climate Act goals?  Stay tuned.

#ClimateAct #NewYork #Climate #NYC #Comptroller #NetZero #Risks #Hochul #ClimateReality #PSC

Roger Caiazza blogs on New York energy and environmental issues at Pragmatic Environmentalist of New York.  This post represents his opinion alone and not the opinion of his previous employers or any other company with which he has been associated. Roger has followed the Climate Leadership & Community Protection Act (Climate Act) since it was first proposed, submitted comments on the Climate Act implementation plan, and has written over 400 articles about New York’s net-zero transition.