Gov. Hochul and the State of the State

By Jeff Jones, Alliance for Clean Energy New York

Standing before a packed Assembly Chamber on Tuesday, Jan. 9 Governor Kathy Hochul delivered her third State of the State Address. Covering a broad range of issues, including mental health, the state’s affordable housing crisis, and additional reforms to New York’s criminal justice system, she also offered a range of proposals that will impact implementation of the state’s ambitious agenda to address the climate crisis and build the clean energy economy.

New York is now in its fifth year since passage of the Climate Leadership and Community Protection Act (CLCPA). Acting in accordance with the law early last year, the Climate Action Council released its plan for achieving the CLCPA’s clean energy mandates. While the governor did not explicitly refer to the law in her address, her mostly technical proposals reflect real world issues that will need to be resolved to continue forward progress toward CLCPA goals. These include relocating the Office of Renewable Energy Siting (ORES) to the Department of Public Service (DPS), where a more robust organizational and staff infrastructure, and streamlined communication will hopefully help move the project permitting process forward at a faster pace.

The stakes could not be higher for getting renewable energy projects permitted and built in New York. “In the wake of the recent news that more than 90 percent of the NYSERDA clean energy projects that were awarded contracts, but not completed, have rejected their contracts due to inflation, the industry is in a major reset phase in New York,” said Anne Reynolds, former ACE NY Executive Director. “Reaching 70% by 2030 is at grave risk.”

The Alliance for Clean Energy (ACE NY) member organizations recognize that the permitting process has become more efficient with the creation of ORES, but changes do need to be made to continue a pipeline of projects going from planning to permitting to construction to completion.

To deliver increasing sources of clean energy to a modernized electric grid, especially downstate, transmission upgrades are needed for renewables deployment. “The renewable energy industry truly appreciates that Governor Hochul is recognizing the importance of transmission permitting,” Reynolds said. “ACE NY looks forward to reviewing the details of a new and improved permitting process for transmission.”

The Governor also proposed the launch of a Clean Transportation Standard (CTS) study. ACE NY will be working for passage of the full CTS as part of its legislation agenda this year.

ACE NY also applauds the announcement of increased funding for projects in the state’s Climate Smart Communities program. Previously, ACE NY has advocated for state sales tax exemptions to reduce the costs of three important items needed to meet the goals of New York’s climate plan: electric vehicles, heat pumps, and battery energy storage. The organization continues to advocate that these measures are included in the Governor’s Executive Budget, currently scheduled for release on Jan. 16. The clean energy industry is enthusiastically supportive of innovative policies to support virtual power plants, affordable community solar, and utility rates that control costs for owners of electric vehicles and heat pumps.

These topics, mentioned in the State of the State address, are all the subject of Public Service Commission proceedings. With the Governor scheduled to nominate several new PSC members in 2024, this underscores the need for a full complement of climate-conscious and engaged Commissioners.

For more information, see the ACE NY 2024 Goals, and 2024 Legislative Priorities.

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Taking the Heat, and How it Got this Way