I have been meaning to write a post about the energy climate content in the recently enacted state budget bill. Keith Schue prepared summary and graciously consented to let me post his work.
Keith has a master’s degree in engineering and worked in the private sector for fourteen years in hardware design. Before moving to New York, he was employed with the Florida Chapter of The Nature Conservancy on issues relating to the impacts of human development and infrastructure on ecosystems. He has been engaged in New York energy policy since 2010, and currently volunteers as a technical advisor for New York Energy & Climate Advocates. He has provided technical input on the federal Clean Power Plan, NYS Energy Plan, NYS Clean Energy Standard, NYS Scoping Plan for climate action, industry regulations, legislation, and various projects.
Unjust State-Mandated Appraising of Solar/Wind Projects
Part N within the Revenue budget bill mandates the use of an appraisal model that shortchanges communities by preventing local governments from receiving adequate tax revenue for the solar/wind projects forced upon them. It also explicitly interferes with active litigation filed by several towns which had argued that the model was developed in violation of the State Administrative Procedures Act (SAPA). Part N exempts the state model from SAPA with a back-dated effectivity, thereby rendering the litigation mute. This blatant disregard of home rule and due process was strongly opposed by numerous communities, contributing to growing unrest among upstate residents in both parties.
NYPA Authorization to Build Renewable Projects
Over the past few years, an ecosocialist far-left subset of climate activists have pushed for legislation requiring the government, through the New York Power Authority (NYPA), to build renewable energy projects. This has been based on a mistaken belief that the biggest problem facing the state is that solar/wind projects are simply not being built fast enough. However, those who understand energy realize that the biggest obstacles to solar/wind are system-related (transmission, storage, & reliable firm generation). Although there are ways that NYPA could help address these system-level issues, advocates of the Build Public Renewable Act (BPRA) have been myopically focused on the CLPA’s “renewable” quota. Various unintelligible versions of the BRPA were proposed. So eventually, succumbing to pressure, the Governor proposed her own version in this year’s budget. While still focused on the buildout of solar/wind, her bill was more sensibly written, granting NYPA authority without allowing it to be hijacked by ideological interests. Her proposal also established a Renewable Energy Access and Community Help (REACH) program to assist people within disadvantaged communities by providing bill credits tied to renewable energy generation.
The governor’s bill became the template for legislation adopted, but several changes were made to accommodate advocates of the BPRA. A requirement was added to prepare a biannual strategic plan tied to the state’s renewable energy targets, developed with input from various groups and subject to public comment. The benefits of REACH were targeted to low and middle-income people. Labor benefits were added, as well as a requirement to use mostly domestically made components–although this can be waived if doing so would cost more (which is likely). The legislation also requires that NYPA shut down the “small natural gas plants” (peakers) that it owns by 2030 (actually sooner than Hochul had proposed). But as pointed out in analysis by Fred Stafford, NYPA’s peakers are actually less polluting than many of those downstate which are privately owned. So, this could ironically benefit private power producers while increasing pollution. The legislation partially addresses this by allowing NYPA peakers to continue operating if more than “de minimis” emissions would otherwise occur in disadvantaged communities. But emission rates could still increase generally. New York will likely learn the hard way that a plan focused on intermittent solar/wind results in more use of peaker plants, not less. (Note: Stafford identifies himself as a socialist–which I am not–but I respect his technical prowess and understanding of energy.) The legislation also provides $25 Million in funding to the Dept of Labor for programs to help workers transition into renewable energy jobs.
Importantly, since NYPA is a state authority, it does not pay taxes. Therefore, any solar/wind projects that it builds will generate zero property tax revenue for local governments. The legislation vaguely says that NYPA’s strategic plan should consider ways of minimizing negative tax revenue impacts on municipalities and PILOT agreements, but nothing specific is actually required. Based on “willing seller” language, it appears that NYPA cannot use eminent domain to acquire property for renewable projects. But this is not so for transmission and a lot more will be needed to support a renewable buildout.
Electrification of Buildings
As covered by the media, there has been significant public uproar over building electrification mandates, heat pumps, and the possible banning of gas stoves. Apparently, the governor and legislature believe they have addressed this by limiting such mandates to NEW buildings. After 2025, new buildings 7 stories or less in height would be prohibited from installing fossil fuel equipment. After 2028, this prohibition would apply to new buildings generally. However, the legislation also includes a number of exceptions, such as for large commercial, restaurants, industry, manufactured homes, car washes, laundromats, hospitals, back-up generators, and critical infrastructure. Exceptions may also be granted by the PSC if adequate grid service is not reasonably available (which could be in a lot of places). For existing buildings, fossil fuel equipment can be used and replaced with new fossil fuel equipment indefinitely, for now.
In addition, the legislation requires that NYPA prepare decarbonization action plans for 15 of the highest-emitting state-owned facilities by January 2026, along with annual progress reports starting in 2025. Decarbonization would be required “to the extent practicable” and there does not appear to be a clear requirement for when such efforts must be complete. For this, decarbonization is defined as eliminating on-site combustion of fossil-fuels and co-pollutants except for back-up emergency generators and redundant systems, providing heating and cooling with thermal energy from non-combustion sources, and to the greatest extent feasible producing on-site electricity from renewables.
No Cap & Invest Program in Budget
The Climate Action Council recommended that the state create a Cap & Invest program (a version of Cap & Trade) to systematically reduce greenhouse gas emissions from sources statewide over time. Essentially, this involves setting a statewide cap on total emissions that gets reduced every year. Then emission allowances are auctioned off to emitters, with proceeds invested in various climate initiatives. The Governor and legislature included versions of Cap & Invest legislation within their respective budget proposals. However, no Cap & Invest legislation made it into the final budget. . DEC claims that it does not actually need legislative authority to create a Cap & Invest program, but this could depend on the extent of the program implemented. Cap & Invest was a major recommendation of the Climate Action Council, so it is unclear what will happen next. It may still be considered during the legislative session.
Creation of a Climate Action Fund
The budget creates a Climate Action Fund for the purpose of helping to compensate for the increased cost to New Yorkers of implementing climate action. The fund is divided into three different accounts: a Consumer Climate Action Account (at least 35%); an Industrial Small Business Climate Action Account (up to 3%); and a Climate Investment Account (at least 67%), with the last one having particular focus on disadvantaged communities. The legislation also requires that a Climate Affordability Study be prepared by January 2024 on the appropriate distribution and use of such funds. In the Governor’s proposal, money for the Climate Action Fund was to come from proceeds of a Cap & Invest program. But since no such program exists yet, it is unclear how the fund will be supported.
New York’s strange political process includes an annual legislative self-made crisis related to the budget which is just coming to a conclusion. This year the initial budget bills from the Governor, Senate and Assembly included significant policy aspects related to the Climate Leadership & Community Protection Act (Climate Act) that did not get included in the final budget bill but there are still some less impactful legislative proposals in the final draft I have seen. This post addresses the allocations for the proposed cap and invest program.
I have been following the Climate Act since it was first proposed. I submitted comments on the Climate Act implementation plan and have written over 300 articles about New York’s net-zero transition because I believe the ambitions for a zero-emissions economy embodied in the Climate Act outstrip available renewable technology such that the net-zero transition will do more harm than good. The opinions expressed in this post do not reflect the position of any of my previous employers or any other company I have been associated with, these comments are mine alone.
Climate Act Background
The Climate Leadership & Community Protection Act (Climate Act) established a New York “Net Zero” target (85% reduction and 15% offset of emissions) by 2050 and an interim 2030 target of a 40% reduction by 2030. The Climate Action Council is responsible for preparing the Scoping Plan that outlines how to “achieve the State’s bold clean energy and climate agenda.” In brief, that plan is to electrify everything possible and power the electric gride with zero-emissions generating resources by 2040. 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. That material was used to write a Draft Scoping Plan. After a year-long review the Scoping Plan recommendations were finalized at the end of 2022. In 2023 the Scoping Plan recommendations are supposed to be implemented through regulation and legislation.
Cap and Invest Overview
As part of the Hochul Administration’s plan to implement the Climate Leadership & Community Protection Act (Climate Act), a market-based pollution control program called ‘’cap and invest” was proposed earlier this year in legislation associated with the budget. The Assembly budget bill does not include any cap and invest provisions other than mandates for the use of the revenues collected. This overview gives context for those provisions.
The Climate Act Scoping Plan identified the need for a “comprehensive policy that supports the achievement of the requirements and goals of the Climate Act, including ensuring that the Climate Act’s emission limits are met.” It claimed that the policy would “support clean technology market development and send a consistent market signal across all economic sectors that yields the necessary emission reductions as individuals and businesses make decisions that reduce their emissions” and provide an additional source of funding. The authors of the Scoping Plan based these statements on the success of similar programs but did not account for the differences between their proposal and previous programs. The Assembly budget bill Part TT proposal is similarly flawed.
The cap and invest proposal is a variation of a pollution control program called cap and trade. In theory, placing a limit on pollutant emissions that declines over time will incentivize companies to invest in clean alternatives that efficiently meet the targets. These programs establish a cap, or limit, on total emissions. For each ton in the cap an allowance is issued. The only difference between these two programs is how the allowances are allocated. The Hochul Administration proposes to auction the allowances and invest the proceeds but, in a cap-and-trade program, the allowances are allocated for free. The intent is to reduce the total allowed emissions over time consistent with the mandates of the Climate Act and raise money to invest in further reductions.
The Environmental Protection Agency administers cap and trade programs for sulfur dioxide (SO2) and nitrogen oxides (NOx) that have reduced electric sector emissions faster, deeper, and at costs less than originally predicted. In the EPA programs, affected sources that can make efficient reductions can sell excess allocated allowances to facilities that do not have effective options available such that total emissions meet the cap. Also note that EPA emission caps were based on the feasibility of expected reductions from addition of pollution control equipment and a schedule based on realistic construction times.
However, there are significant differences between those pollutants and greenhouse gas pollutants that affect the design of the proposed cap and invest program. The most important difference is that both SO2 and NOx can be controlled by adding pollution control equipment or fuel switching. Fuel switching to a lower emitting fuel is also an option for carbon dioxide (CO2) emissions but there are no cost-effective control equipment options. Consequentially, CO2 emissions are primarily reduced by substitution of alternative zero-emissions resources. For example, in the electric sector replacing fossil-fired units with wind and solar resources. The ultimate compliance approach if there are insufficient allowances available is to limit operations.
New York State is already in a cap and invest program with an auction for CO2 emissions from the electric generating sector. Although significant revenues have been raised, emission reductions due to the program have been small. Since the Regional Greenhouse Gas Initiative started in 2009, emissions in nine participating states in the Northeast have gone down about 50 percent, but the primary reason was fuel switching from coal and residual oil to natural gas enabled by reduced cost of natural gas due to fracking. Emissions due to the investments from the auction proceeds have only been responsible for around 15 percent of the total observed reductions.
The Hochul Administration has not addressed the differences between existing market-based programs and the proposed cap and invest program. Although RGGI has provided revenues, the poor emission reduction performance has been ignored despite the need for more stringent reductions on a tighter schedule to meet the arbitrary Climate Act limits. The Hochul Administration has not done a feasibility analysis to determine how fast the wind and solar resources must be deployed to displace existing electric generation to make the mandated emission reductions. Worse yet, the Climate Act requires emission reductions across the entire economy and the primary strategy for other sectors is electrification, so electric load is likely to increase in the future.
In late March, the Hochul Administration proposed a modification to the Climate Act to change the emissions accounting methodology to reduce the expected costs of the cap and invest program. New York climate activists claimed that the change would eviscerate the Climate Act and convinced the Hochul Administration to delay discussion of this aspect of the cap and invest proposal. This cost issue will have to be resolved in the upcoming debate over the cap and invest program.
In addition, the Hochul Administration has proposed a rebate to consumers that will alleviate consumer costs and this is included in the final budget bill. This raises a couple of issues. The market-based control program intends to raise costs to influence energy choices, so if all the costs are offset there will not be any incentive to reduce consumer emissions by changing behavior. The other issue is that the auction proceeds are supposed to be invested to reduce emissions. If insufficient investments are made to renewable resources, then deployment of zero-emission resources to offset emissions from fossil generating units will not occur.
The final issue related to the cap and invest proposal is that it provides compliance certainty but you have to be careful what you wish for. The plan is to match the allowance cap with the Climate Act emission reduction mandates. As noted previously, there are limited options available to reduce CO2 emissions. The primary strategy will be developing zero-emissions resources that can displace emissions from existing sources. That implementation is subject to delays due to supply chain issues, permitting delays, and costs as well as other reasons that the state’s transition plan has ignored. Once all the other compliance alternatives are exhausted, the only remaining option is to reduce the availability of fossil fuel and its use. Worst case could mean no fuel for transportation, electricity generation or home heating if the allowances run out.
Part TT in Assembly Budget Bill
The primary purpose of this post is to address Part TT of the Assembly budget bill. The legislation proposes to amend Section 1854 of the Public Authorities Law by adding three new subdivisions 24, 25 and 26. I will only address the new § 99-qq. New York Climate Action Fund. Proceeds from the cap-and-invest auction are intended to go to the Climate Action Fund and the legislation mandates that the revenues must not be reallocated at the whim of the Administration. It requires the comptroller to setup the “following separate and distinct accounts”:
Consumer Climate Action Account;
Industrial Small Business Climate Action Account; and
Climate Investment Account.
The accounts have mandated allocations and purposes. The Consumer Climate Action Account is allocated 30% of the revenues collected and the money “shall be expended for the purposes of providing benefits to help reduce potential increased costs of various goods and services to consumers in the state.” The Industrial Small Business Climate Action Account is allocated no more than 3% for “the purposes of providing benefits to help reduce potential increased costs of various goods and services to industrial small businesses incorporated, formed or organized, and doing business in the state of New York.” The Climate Investment Account is allocated the remaining 67% for the purposes of assisting the state in transitioning to a less carbon intensive economy.
The Climate Investment Account has three components. The first component covers “purposes which are consistent with the general findings of the scoping plan prepared pursuant to section 75-0103 of the environmental conservation law” I presume that means investments in recommended strategies to reduce GHG emissions. The second component covers “administrative and implementation costs, auction design and support costs, program design, evaluation, and other associated costs”. The third component includes “measures which prioritize disadvantaged communities by supporting actions consistent with the requirements of paragraph d of subdivision three of section 75-0109 and of section 75-0117 of the environmental conservation law, identified through community decision-making and stakeholder input, including early action to reduce greenhouse gas emissions in disadvantaged communities.” Section 75-0117 states:
State agencies, authorities and entities, in consultation with the environmental justice working group and the climate action council, shall, to the extent practicable, invest or direct available and relevant programmatic resources in a manner designed to achieve a goal for disadvantaged communities to receive forty percent of overall benefits of spending on clean energy and energy efficiency programs, projects or investments in the areas of housing, workforce development, pollution reduction, low income energy assistance, energy, transportation and economic development, provided however, that disadvantaged communities shall receive no less than thirty-five percent of the overall benefits of spending on clean energy and energy efficiency programs, projects or investments and provided further that this section shall not alter funds already contracted or committed as of the effective date of this section.
Funding Allocations
I am particularly concerned with the funding allocations. Ultimately the cap and invest program is supposed to invest funds received in the recommended strategies to achieve the net-zero transition. The Climate Action Council’s Scoping Plan presumes that investors will make fund all the infrastructure necessary to reduce GHG emissions consistent with the Climate Act targets. However, unless subsidies are available, I do not think there will be sufficient private investment to develop all the necessary infrastructure. This legislation does not recognize this challenge.
The following table breaks down the allocations. The Consumer Climate Action Account is a gimmick. The state proposes to quietly take money on one hand and then turn around and loudly give some of it back on the other hand. Who gets what and has anyone bothered to figure out if the giveback makes anyone whole for the costs? The Industrial Small Business Climate Action Account is intended to appease the companies that will inevitably end up paying more to be less competitive. The Climate Act is supposed to rectify climate and environmental justice inequities and the offered solution is a 40% investment in affected communities. In the following table I assumed that the 40% would come out of the climate investment account. New York is already in the Regional Greenhouse Gas Initiative (RGGI) cap and invest program. In Fiscal Year 22-23, the RGGI operating plan costs for program administration, state cost recovery and the pro rata costs to RGGI Inc for things like auction services and market monitoring comprised 10.9% of the total expenses. I assumed those costs only relate to the Climate Investment Account. That leaves 49.1% for this account. Those are the Climate Investment Account revenues that can be invested in the infrastructure necessary to subsidize the infrastructure requirements for the net-zero transition.
Discussion
I support the intent of the proposed legislation to prevent using the revenues raised in the cap and invest auction for purposes other than its intended use. In the past, RGGI revenues have been overtly transferred to balance the budget and, as far as I am concerned, RGGI revenues are still used to cover inappropriate costs. However, the proposed legislation still undermines the GHG emission reduction potential of the cap and invest program.
In the previous table I broke down the allocations in the Climate Investment Account relative to the total revenues generated. When you apportion the 67% allocation to the Climate Investment Account between the three categories it does not appear that the authors of the legislation have accounted for the challenge of implementing the infrastructure necessary to make the reductions necessary. The administrative component will account for 7.3% of the total revenues. The investments in the disadvantaged communities are necessary to protect those least able to afford the inevitable increased cost of energy. However, the results from the NY RGGI funding status report indicate that energy efficiency, energy conservation, and other indirect emission reduction strategies are not very cost effective so despite revenues of 26.8% of the total I do not expect significant reductions. Most importantly, only 32.9% of the auction revenues will be available to subsidize the emission reduction strategies necessary to displace the use of fossil fuels and reduce GHG emissions.
The Hochul Administration and authors of this legislation apparently do not recognize the RGGI investment results that show that emissions due to the investments from the auction proceeds have only been responsible for around 15 percent of the total observed reductions. This is a challenge that should be a priority for investment planning. The allocation of less than a third of the total revenues shows that they don’t get it.
In addition, the Consumer Client Action account is intended to provide a rebate that will alleviate consumer costs. However, the market-based control program intends to raise costs to influence energy choices, so if all the costs are offset there will not be any incentive to reduce consumer emissions by changing behavior.
My biggest concern is the lack of recognition that the auction proceeds must be invested to reduce emissions. If insufficient investments are made to renewable resources development, then deployment of zero-emission resources to offset emissions from fossil generating units will not occur. The Scoping Plan and Integration Analysis provide no details for the total expected costs so we don’t know how much money has to be raised. The Hochul Administration has not detailed what assets are supposed to fund those costs nor provided a timeline for developing resources needed to meet the Climate Act emission reduction mandates.
Conclusion
The cap and invest proposal is a well-meaning but dangerous plan. It will increase the cost of energy in the state. If the costs are set such that the investments will produce the necessary emission reductions to meet the Climate Act targets, it is likely that the costs will be politically toxic. If the investments do not effectively produce emission reductions, then the compliance certainty feature will necessarily result in artificial energy shortage. Given all the uncertainties it is probably best to not pass any implementing legislation until there is time to discuss policy implications.
On April 4 I published an article about the Hochul Administration’s proposal to make some changes to the greenhouse gas emissions accounting approach in the Climate Leadership & Community Protection Act (Climate Act). After a “firestorm of opposition from environmentalists” the proposal to use a different global warming potential value was removed from budget negotiations but the topic will still be addressed later this year. This post provides information on this Climate Act component to try to clear up some misconceptions that I noticed in the recent dustup and to explain what the two methodologies mean to required emission reductions.
I have been following the Climate Act since it was first proposed. I submitted comments on the Climate Act implementation plan and written over 300 articles about New York’s net-zero transition because I believe the ambitions for a zero-emissions economy embodied in the Climate Act outstrip available renewable technology such that the net-zero transition will do more harm than good. The opinions expressed in this post do not reflect the position of any of my previous employers or any other company I have been associated with, these comments are mine alone.
Climate Act Background
The Climate Act established a New York “Net Zero” target (85% reduction and 15% offset of emissions) by 2050 and an interim 2030 target of a 40% reduction by 2030. The Climate Action Council is responsible for preparing the Scoping Plan that outlines how to “achieve the State’s bold clean energy and climate agenda.” In brief, that plan is to electrify everything possible and power the electric gride with zero-emissions generating resources by 2040. 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. That material was used to write a Draft Scoping Plan. After a year-long review the Scoping Plan recommendations were finalized at the end of 2022. In 2023 the Scoping Plan recommendations are supposed to be implemented through regulation and legislation.
Global Warming Potential
The recent controversy involved changes to the Greenhouse Gas (GHG) emissions accounting approach used by the Climate Act to account for methane or natural gas emissions. The Environmental Protection Agency (EPA) explains that the Global Warming Potential (GWP) was “developed to allow comparisons of the global warming impacts of different gases”. EPA explains that GHGs affect the rate at which energy from the surface escapes to space. The explanation notes:
Different GHGs can have different effects on the Earth’s warming. Two key ways in which these gases differ from each other are their ability to absorb energy (their “radiative efficiency”), and how long they stay in the atmosphere (also known as their “lifetime”).
The EPA explanation goes on to state:
Specifically, it is a measure of how much energy the emissions of 1 ton of a gas will absorb over a given period of time, relative to the emissions of 1 ton of carbon dioxide (CO2). The larger the GWP, the more that a given gas warms the Earth compared to CO2 over that time period. The time period usually used for GWPs is 100 years. GWPs provide a common unit of measure, which allows analysts to add up emissions estimates of different gases (e.g., to compile a national GHG inventory), and allows policymakers to compare emissions reduction opportunities across sectors and gases.
CO2, by definition, has a GWP of 1 regardless of the time period used, because it is the gas being used as the reference. CO2 remains in the climate system for a very long time: CO2 emissions cause increases in atmospheric concentrations of CO2 that will last thousands of years.
Methane (CH4) is estimated to have a GWP of 27-30 over 100 years (Learn why EPA’s U.S. Inventory of Greenhouse Gas Emissions and Sinks uses a different value.). CH4 emitted today lasts about a decade on average, which is much less time than CO2. But CH4 also absorbs much more energy than CO2. The net effect of the shorter lifetime and higher energy absorption is reflected in the GWP. The CH4 GWP also accounts for some indirect effects, such as the fact that CH4 is a precursor to ozone, and ozone is itself a GHG.
Nitrous Oxide (N2O) has a GWP 273 times that of CO2 for a 100-year timescale. N2O emitted today remains in the atmosphere for more than 100 years, on average.
Chlorofluorocarbons (CFCs), hydrofluorocarbons (HFCs), hydrochlorofluorocarbons (HCFCs), perfluorocarbons (PFCs), and sulfur hexafluoride (SF6) are sometimes called high-GWP gases because, for a given amount of mass, they trap substantially more heat than CO2. (The GWPs for these gases can be in the thousands or tens of thousands.)
EPA also explains that there are alternatives to using the 100-year GWP:
The United States primarily uses the 100-year GWP as a measure of the relative impact of different GHGs. However, the scientific community has developed a number of other metrics that could be used for comparing one GHG to another. These metrics may differ based on timeframe, the climate endpoint measured, or the method of calculation.
For example, the 20-year GWP is sometimes used as an alternative to the 100-year GWP. Just like the 100-year GWP is based on the energy absorbed by a gas over 100 years, the 20-year GWP is based on the energy absorbed over 20 years. This 20-year GWP prioritizes gases with shorter lifetimes, because it does not consider impacts that happen more than 20 years after the emissions occur. Because all GWPs are calculated relative to CO2, GWPs based on a shorter timeframe will be larger for gases with lifetimes shorter than that of CO2, and smaller for gases with lifetimes longer than CO2. For example, for CH4, which has a short lifetime, the 100-year GWP of 27–30 is much less than the 20-year GWP of 81–83.
Climate Act Global Warming Potential
The ideologues who wrote the Climate Act chose to use GWP measured over 20 years rather than 100-years. I believe that this was a deliberate choice to emphasize the “value” of methane and natural gas reductions. At the time the Act was passed this was a unique choice and since then only one jurisdiction (the state of Maryland) has chosen this approach. Everybody else, all the other states, the EPA, and the Intergovernmental Panel on Climate Change, all use GWP measured over 100 years. The proposal to change this accounting was greeted with vociferous opposition from New York’s environmental community because it was perceived as reducing the value of reductions of oil, gas, and bio-fuels.
If adopted, S6030 would cast New York’s newly-adopted climate plan into limbo by changing the figures that provide the foundation for its 400-plus pages of policy recommendations. It would also have brought New York’s accounting in line with the way methane is counted by most other states and the federal government — a method climate scientists say is outdated, and that underestimates the outsized impact that natural gas leaks and other major methane sources have on climate change.
If I had the time, I would respond to the entire article because it exemplifies the rationale of the NY environmental community relative to this issue. Unfortunately, there are too many issues on my plate to address all of it. However, the last sentence quoted above must be addressed. As I noted previously both the EPA and the IPCC use GWP-100. It is hypocritical for activists to demand that New York follow the “Science” as espoused by the IPCC except when it is inconvenient. The claim that “a method climate scientists say is outdated” cherry picks a limited number of scientists. In New York that would be Robert Howarth Ph.D. who has repeatedly claimed that he played a key role in the drafting of the Climate Act.
Dr. Howarth is a biogeochemist and ecosystem scientist who has assumed the mantle of venerated Climate Scientist™. Everything he says is taken as holy writ by New York climate activists. It is not clear to me why the David R. Atkinson Professor of Ecology & Environmental Biology at Cornell University is considered a climate scientist with impeccable qualifications that preclude any criticism of his arguments. I have no doubts of his expertise related to methane chemistry and the comparison to carbon dioxide in the laboratory. However, his understanding and that of the New York climate activist community, on the role of methane on global warming is flawed. I charitably ascribe his incorrect views to his lack of background in atmospheric physics. I have summarized the methane issues ignored by Howarth. It boils down to one issue that even the EPA description overlooks. The GWP values are based on laboratory molecular measurements which are only appropriate in that setting. In the atmosphere where the effect on global warming actually occurs, the relative differences between carbon dioxide and methane due to concentrations, the particular wavelengths affecting the out-going radiation, and the saturation effect all mean that carbon dioxide is much more important than methane. If considered properly the EPA and IPCC approach is appropriate and the use of the 20-year GWP is not justified as mandated in the Climate Act
New York State GHG Emissions Inventory GWP-20 and GWP-100
The primary purpose of this post is to document the differences between the emissions associated with the two global warming potential methodologies. The differences are being portrayed as hugely important. Marie French writes:
But the numbers — and previous work by state staff — show that New York would be required to take less aggressive action to slash greenhouse gasses if Gov. Kathy Hochul, despite dropping an immediate push for it Wednesday, ultimately cuts a deal with lawmakers to change the climate law, an effort first reported by POLITICO. “Overall, you’re saying we don’t need to reduce emissions as much,” said Bob Howarth, a Cornell University professor and member of the Climate Action Council that was set up to chart a path to achieving the state’s climate goals. “This is a big retrenchment from the climate goal, particularly on the use of natural gas.”
In order to look at the numbers I developed a spreadsheet that uses the NYS GHG emissions by Global Warming Potential for 20-year and 100-year time frames. The observed data from 1990 to 2020 are from the 2022 Statewide GHG Emissions Report and the associated data on Data NY for Statewide GHG Emissions.
My spreadsheet also makes projections for 2021-2030. I made some educated guesses for the 2021 and 2022 emissions. Electricity sector emissions in 2021 and 2022 are available from EPA. I assumed that the ratio of direct CO2 emissions to all the other GHG emissions in the sector for the last three years would be the same as for 2021 and 2022 to estimate the total electricity sector emissions. The emissions from all the other sectors are the average of the last three years. On the long list of unresolved questions is how the emission reduction target of 2030 will be apportioned amongst the different sectors. A portion of the agricultural and industrial sector emissions are off the table. Does that mean the other sectors have to produce reductions to make up the difference? For this analysis I just assumed that all sectors have to reduce their emissions 40% less than their 1990 baseline emissions. I assumed a linear reduction from 2022 to 2030 to estimate the annual emissions.
The total emissions shown in the following graph shows that GWP-20 values are significantly higher than GWP-100 values. In the baseline year of 1990 the total GWP-20 emissions were 404 million metric tons of carbon dioxide equivalent (MMT CO2e) and the GWP emissions were 314 MMT CO2e or 29% higher. In the last year of observed data, 2020, the GWP-20 emissions were 345 MMT CO2e and the GWP emissions were 245 MMT CO2e or 41% higher. Does that mean that changing to GWP-100 will the State can take less aggressive action to reduce emissions? Between 1990 and 2020 the total GWP-20 emissions dropped 15%. In order to meet the 2030 targets GWP-20 emissions will have to be reduced 29% almost double the reductions observed over 30 years. On the other hand, GWP-100 emissions dropped 23% between 1990 and 2020 and will “only” have to be reduced a further 22% to meet the
mandated reduction of 40% of total GHG emissions by 2030. It does appear that less aggressive action is needed but as shown below I don’t think the 2030 target is achievable for either accounting system.
One other feature of the plots needs to be discussed before we can address the question whether the target is likely for either accounting approach. The last year of observed emissions was 2020 and that value is sharply lower than the general trend because of the pandemic shutdown of society. I chose not to make any sophisticated attempt to adjust emissions for that outlier. However, note that emissions in 2021 are higher than 2019 despite the general downward trend. That is entirely due to the State’s misguided shutdown of Indian Point and the resulting increase in emissions.
To gain a perspective of the relative importance of sector specific emissions I list the emissions by sector for each GWP accounting methodology below:
One of my biggest concerns with the Scoping Plan is that it did not include a feasibility analysis. This is particularly troublesome with regards to the schedule for the mandated targets. If we consider the following graphs for each sector specifically looking at the rate of reductions required compared to historical emissions it does not appear to me that the targets are achievable.
I am most familiar with the electric sector. The following graph shows the GWP-20 and GWP-100 emissions for just that sector. The increased emissions associated with the shutdown of Indian Point and resulting fossil fuel generation emissions increase to replace that zero-emissions resource is clearly visible. The first reaction looking at the emission trends could be that the slope of both emission trajectories from 2006 to 2018 is roughly consistent with the trend necessary to meet the 2030 target from 2022 to 2300. There is a problem with that perception however. The observed reductions from 2006 to 2018 were primarily due to fuel switching away from coal and residual oil to natural gas. There are no more opportunities for fuel switching emission reductions. In order to reduce electric sector emissions, zero-emissions wind and solar resources must be deployed to displace fossil generation at the same time load is expected to increase due to the electrification of other sectors. I believe that the lack of a feasibility analysis to prove this is possible will prove problematic by 2030.
I am not familiar with the control strategies for other sectors but the same unsettling emission trajectory reduction rates are apparent. The biggest source of emissions using GWP-20 is buildings. Because GWP-20 accentuates the effect of natural gas, there will have to be a real concerted effort to switch existing building sector gas away from natural gas. In my opinion neither emission reduction trajectory rate looks realistic relative to historical emissions but the GWP-20 rate (31% between 2020 and 2030) is more unlikely.
Transportation is the next highest emitting sector for GWP-20 accounting and is greater than buildings for GWP-100. From 2010 to 2018 both emission trajectories were very similar. Clearly the emission reductions necessary in this decade are considerably faster than anything observed in the past. I am not aware of any indications that the public is ready to embrace electric vehicles at the rate necessary to meet this reduction trajectory.
The industrial sector emissions reductions have been steadily decreasing since the mid 1990’s. Unfortunately, that is more a reflection of the business climate of New York rather than any clean energy strategy. The Climate Act includes provisions that are supposed to prevent further reductions in this sector to save jobs but no details have been provided. This is another instance where it may be decided that other sectors must provide reductions so that the state GHG emissions meet the 2030 target.
The waste sector emissions trends are interesting. I did not try to figure out what was going on between 2008 and 2009 when there is an obvious step change in GWP-20 emissions from 43 MMT to 38 MMT CO2e. In my experience with emission inventories any change that drastic was caused by some error in my work. More importantly, a 30% emissions reduction (12.6 MMT CO2e) is required from 2020 to 2030 in order to meet the 40% reduction from the 1990 baseline mandate. Note, however that while the GWP-100 required emission reduction is only 4.6 MMT CO2e it still represents a 30% reduction. I am not aware of any control technology that can be expected to provide that kind of reduction.
I include the agricultural sector for completeness but caution that I don’t know how the emissions will be handled. I know that some emissions are exempt but exactly how many I do not know. In any event the effect of the methane bias is obvious. It also is obvious that expecting the agricultural sector to make its share of emission reductions is unlikely.
Discussion
I do not think the proponents of the Climate Act understand how difficult it is to reduce GHG emissions. In the electric sector the only readily available emission reduction approach is to switch to a lower emitting fuel. There are no more opportunities to fuel switch in New York and there is no add-on cost-effective control option available. As a result, the only control option left is to reduce operations. The Scoping Plan presumes that wind and solar will be deployed such that the fossil generators will be displaced as required by the Climate Act schedule. However, the Integration Analysis did not include a feasibility study to prove that would be possible while current reliability standards are maintained.
As difficult as it is for the electric sector to reduce GHG emissions, that is the sector where reductions are most feasible. In general, the problem with all the “clean energy” solutions is that they don’t work all the time and the time when they don’t work is the time, they are needed the most. For example, in the building sector, air source heat pumps are touted as the replacement for fossil-fired furnaces. Despite the claims that they work fine, there is a point when air source heat pumps do not provide sufficient heat in really cold weather. That issue can be addressed by upgrades to the building shell but that in turn requires upgrades to the ventilation system. In order to provide a system as resilient as a fossil-fired furnace the costs of all the additions to the home will be so great that they are not saving enough energy to make the investments cost effective. The Integration Analysis did not include a feasibility study to demonstrate what would be needed to maintain the same level of resiliency for residential home heating or any of the other components of the net zero transition.
When Governor Hochul tried to sneak in a fossil-fueled methane accounting method that would gut New York State’s Climate Act during the final push of budget negotiations, New York’s climate and environmental justice movement responded swiftly and powerfully. NY Renews is proud to stand with a movement that stopped—for now—changes to New York’s progressive 20-year methane accounting method as written in law.
Based on these numbers I don’t disagree that using the 100-year GWP makes the emission reductions less problematic. However, the emission reduction rate trajectories necessary to meet the 2030 40% reduction mandate are so much greater than anything in the past that I do not think the accounting approach is going to matter. As a result, the over-the-top rhetoric about the importance of the 20-year GWP accounting approach is unwarranted.
The Hochul Administration lost control of the Climate Action Council and allowed naïve and uneducated ideologues to control the narrative. The global warming potential issue is one example of a technical consideration that was chosen based on emotion rather than a full understanding of the ramifications. In this instance the one unarguable negative aspect of the 20-year GWP is that it precludes New York from joining any other emissions market program with other jurisdictions. If New York cannot join other jurisdictions, then they will have to develop all the infrastructure for their system on their own.
Inevitably, there will be another flash point issue. The lack of a feasibility analysis to prove that reductions at the rate necessary for any sector to meet the 2030 targets kicked the problem down the road. The insistence that the Climate Action Council could not consider a “plan B” if targets could not be met means there is no contingency plan in place. When the reality that the 2030 40% reduction mandate cannot be met becomes obvious that will incense New York’s climate and environmental justice movement who will undoubtedly demand that the targets must be met. As explained above the ultimate control strategy is to stop burning fossil fuels. Hochul will have to choose between keeping the lights on, gasoline obtainable at the pump, and natural gas available for homes against meeting the arbitrary emissions reduction mandate of the Climate Act.
According to Merriam-Webster a kerfuffle is a disturbance or commotion typically caused by a dispute or conflict and it perfectly describes the response to the Hochul Administration’s proposal to make some changes to the greenhouse gas emissions accounting approach in the Climate Leadership & Community Protection Act (Climate Act). It is being described as revisions that will gut the Climate Act and reward the evil fossil fuel industry. This post explains why I think it injects a bit of sanity in the transition plan but misconceptions abound on both sides of all the ramifications.
I have been following the Climate Act since it was first proposed and have submitted comments on the Climate Act implementation plan and written over 300 articles about New York’s net-zero transition because I believe the ambitions for a zero-emissions economy embodied in the Climate Act outstrip available renewable technology such that the net-zero transition will do more harm than good. The opinions expressed in this post do not reflect the position of any of my previous employers or any other company I have been associated with, these comments are mine alone.
Climate Act Background
The Climate Act established a New York “Net Zero” target (85% reduction and 15% offset of emissions) by 2050. The Climate Action Council is responsible for preparing the Scoping Plan that outlines how to “achieve the State’s bold clean energy and climate agenda.” In brief, that plan is to electrify everything possible and power the electric gride with zero-emissions generating resources by 2040. 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. That material was used to write a Draft Scoping Plan. After a year-long review the Scoping Plan recommendations were finalized at the end of 2022. In 2023 the Scoping Plan recommendations are supposed to be implemented through regulation and legislation.
Greenhouse Gas Emission Accounting System Revisions
– Reverts New York’s emissions accounting methodology to one using a one hundred year timeframe for assessing the global warming impact of emissions, moving away from the demanding accounting system mandated by the Climate Leadership and Community Protection Act. In doing so, this makes New York’s approach comparable to that employed by the IPCC, the U.S. Environmental Protection Agency, and the three other states – California, Oregon, and Washington – that have explicitly adopted a GHG accounting methodology.
– It specifically requires using full life-cycle analysis (using the Argonne Labs GREET model) for all systems resulting in GHG emissions in New York State, which will align the state with recent federal green incentive programs adopted in the Inflation Reduction Act. Access to those federal incentives will promote additional green energy investments in New York.
– Consistent with the use of full life-cycle analysis, it specifically requires the inclusion in the state’s emission inventory emissions related to the production and transmission of biofuels imported into New York State.
– It more appropriately measures the net emissions from renewable fuels, making these clearer alternative fuels available to New Yorkers at lower costs, by excluding from the state’s GHG inventory CO2 emissions from the combustion of biomass and biofuels. This approach is consistent with the United Nation’s Intergovernmental Panel on Climate Change’s accounting approach, and the GREET model, as these emissions were recently removed from the atmosphere and will be removed again in future growing seasons.
The Hochul Administration claims that changing the accounting methodology will also change the costs to consumers. Climate Action Council co-chairs Doreen Harris and Basil Seggos argued that:
“First and foremost, the governor is trying to maintain New York’s leadership on climate. It’s a core principle that she brought into office and we have been carrying that out for several years,” said Seggos.
But Gov. Hochul instructed both the DEC and NYSERDA to look at the affordability of Cap & Invest.
“We began running the numbers on that, based on some of the metrics being used by Washington state and some of our own, and revealed some…potentially extraordinary costs affiliated with the program,” Seggos explained. “So that’s really what this is. It isn’t a focus necessarily on methane itself, or any particular pollutant. It is how do we implement the CLCPA in a way that doesn’t put extraordinary costs on the pockets of New Yorkers.”
The task before DEC and NYSERDA is three-fold: To launch Cap & Invest, generate revenue to offset the cost of the transition and keep the whole system affordable.
The Climate Action Council’s scoping plan was released in December using the 20-year methane metrics. When asked if there had been a more recent analysis, NYSERDA’s Doreen Harris said yes.
“What the governor has asked us to do, and what we have now delivered, is an analysis around one piece (of the CLCPA), answering the question of how does one get from here to there,” Harris said. “This Cap & Invest proposal is an important part of not only capping emissions, but also investing revenues toward the change that we seek.”
Harris explained that under the CLCPA’s accounting framework, New Yorkers would be paying “substantially more out of their pockets, at the pump, to heat their homes and beyond.”
At the same time, she agreed that the original cost analysis of the transition by the Climate Action Council indicated that the benefits of action, using the 20-year methane metric, far outweighed the costs of the transition.
I don’t know what to make of these arguments. In the first place they offered no documentation to support it. In the second place Harris re-iterated the claim that “the benefits of action, using the 20-year methane metric, far outweighed the costs of the transition” without mentioning the caveat that the Scoping Plan only considered the costs of the Climate Act and not the costs of already implemented programs so the total costs of the transition were not considered in the claim. Importantly all the costs will directly affect New Yorkers but the benefits are societal benefits that provide indirect benefits. When all the costs and benefits are unraveled the Hochul Administration claim that the benefits out-weigh the costs are nothing more than a shell game. Finally, I think the Hochul Administration is worried about the ratepayer costs of the cap and invest program but that is only a revenue stream. The actual, and yet to be provided, costs are those associated with all the control strategies buried in the Scoping Plan recommendations. I am not sure how much of an effect, if any, the 20-year GWP accounting has on the amount of wind, solar, and energy storage resources needed for the net zero transition.
Activist Responses to the Proposed Revisions
In one word the response to the legislation has been “meltdown”. For example, NY Renews, a coalition of over 300 environmental, justice, faith, labor, and community groups that bills itself as the “force behind the nation’s most progressive climate law” had this to say:
S6030/A6039 is part of a larger pattern of attacks by the fossil fuel industry that threaten to sabotage New York’s nation-leading climate law, the Climate Leadership and Community Protection Act, and roll back hard-won standards for accurately accounting for the impacts of greenhouse gas emissions, particularly methane. If passed, the bill would change how the state measures methane and carbon dioxide emissions, pave the way for polluting corporations to emit without consequence, and harm the health and well-being of frontline community members who live, work, play, and pray in neighborhoods across NYS.
NY Renews unequivocally opposes the inclusion of this bill in the state budget and any deal that would include it. We’re calling on the state legislature to uphold the Climate Act as written into law and reject amendments that would threaten its power to protect and prepare New Yorkers facing the worst effects of the climate crisis.
Another example of the response is the April 3, 2023 “Save the CLCPA Action Party” webinar. It was an hour-long rally the troops to contact elected representatives. The meeting was in coordination with the Climate Action Now application that simplifies lobbying with actions in the app:
Like contacting your elected officials, emailing CEOs, or Tweeting at celebrities to step up – can be taken with just a few touches in just a few seconds. We’ve done all the work for you so that you don’t have to. Don’t know who your elected officials are? Give the app your location, and it will tell you. Don’t know how to contact them? The app has their phone numbers and Twitter handles. Don’t know what to tell them? We give you personalized, boilerplate messages that you can accept or modify.
As a result of the webinar 1500 messages were sent to elected representatives claiming that this legislation will eviscerate the Climate Act.
Finally, in an example of “if we don’t get our way we aren’t going to play” there was a Climate Act meeting boycott. On April 3, 2023 the Department of Environmental Conservation announced a meeting of the Climate Justice Working Group for the next day. This meeting was to include the approval of minutes from the previous meeting and a group discussion following the finalization of the disadvantaged communities criteria on March 27. All the Environmental Justice members of the Working Group boycotted or left the call because of this legislation so the call ended after only 45 minutes.
Discussion
I think this legislation introduces some rationality into the implementation process. There are no changes to the basic structure and objectives of the Climate Act so the claims of egregious harm of the proponents are unwarranted. The emission reduction targets and schedules stay the same but it will have several significant beneficial impacts.
The ideologues who wrote the Climate Act placed an inordinate emphasis on vilifying the use of natural gas to the point that they mandated a unique accounting methodology. Global warming potential (GWP) weighs the radiative forcing of a gas against that of carbon dioxide over a specified time frame so that it is possible to compare the effects of different gases. The Climate Act mandated the use of a 20-year GWP at the time when every other jurisdiction was using a 100-year GWP. One of the cornerstones of the Hochul Administration’s plan to fund the transition is a market-based program called cap and invest. If New York is ever to become a part of such a program with other jurisdictions it is necessary that our accounting is the same as everybody else.
There are effects on the achievability of the Climate Act reduction mandates relative to the use of the 100-year GWP rather than the 20-year GWP. It will reduce baseline and observed emissions on the order of 20 percent. It also shifts the emphasis on what needs to be controlled in each sector and the relative importance of sector emissions. I have no idea whether that makes achieving the targets easier or not.
I am intrigued by the provision that requires using full life-cycle analysis using the Argonne Labs Greenhouse gases, Regulated Emissions, and Energy use in Technologies (GREET) model. I am not familiar with that model but I believe that it is necessary for New York State’s cap and invest model to use standardized and replicable emissions accounting for the proposed cap and invest program. This model will likely fulfill that requirement.
Proponents of the proposed legislation claim that it will allow investors in New York to access significant federal tax incentives under the Inflation Reduction Act of 2022 (IRA) credits for clean fuel and clean hydrogen production, as these tax credit programs specifically require the use of the GREET model to determine climate impact scores. The discussion at the “Save the CLCPA Action Party” claimed that Senator Schumer had said that there was no link between the IRA and whether New York uses GWP-20 year accounting. I suspect that there is a technical issue here. If the IRA requires the use of GREET and GREET uses 100-year GWP, then I think it is an implicit requirement.
Ultimately NY Renews and its membership have an irrational hatred of methane that was exemplified by the 20-year GWP accounting methodology. During the “Save the CLCPA Action Party” each speaker argued that Dr. Robert Howarth’s vision of methane and the 20-year GWP accounting was correct and that he represented the best science on the subject. It is not clear to me why the David R. Atkinson Professor of Ecology & Environmental Biology at Cornell University is considered a climate scientist with impeccable qualifications that preclude any criticism of his arguments. His understanding of the role of methane on global warming is flawed. I charitably ascribe his incorrect views to his lack of background in atmospheric physics. I have summarized the methane issues ignored by Howarth. For starters, the measurements that quantify the difference between carbon dioxide and methane effects on radiative transfer are done on a molecule-to-molecule basis. The effect of those pollutants on global warming, which is the reason for the Climate Act, should account for the differences of those pollutants in the atmosphere not in the lab on a molecule-to-molecule basis. If the world outside a laboratory effects of concentrations in the atmosphere, the molecular weights instead of mass, the wavelengths where methane acts on outgoing radiation, and the saturation effect of GHG concentrations are considered correctly, the use of the 20-year GWP is not justified as mandated in the Climate Act.
Conclusion
On one hand it is encouraging to see that the Hochul Administration has recognized that their plans will have significant affordability impacts and are trying to do something about it. On the other hand, there still is no comprehensive accounting for their cost projections so we have to guess at the effects. In any event, the proposed legislation is a marked improvement over the existing Climate Act. If the goal is an ideologically pure green new deal then opposition is warranted. On the other hand, if the goal is to implement a GHG emissions reduction program that has an improved chance of actually working then it makes sense.
The following picture describes the Climate Act as it stands. As long as the State goes straight and does not have to consider what happens if we have to make a turn then it might work. When that does not happen there will be consequences.
I lost track of this proposed regulation so I did not let my New York readers know that there was the opportunity to comment on the proposed rulemaking that will incorporate the State of California’s Advanced Clean Cars into New York’s regulations. This is the implementing regulation for the state law to switch to zero emission vehicles. It is unlikely that it will do any good but it would be appropriate to comment and express any misgivings you have about the requirement for a battery electric vehicle. The comment deadline is 5 pm, Monday, March 6, 2023. Written comments may be submitted by e-mail to air.regs@dec.ny.gov. Put Part 218 in subject line.
This is another article about my evaluation of the Climate Act that I have written because I believe the ambitions for a zero-emissions economy embodied in the Climate Act outstrip available renewable technology such that the net-zero transition will do more harm than good. The opinions expressed in this post do not reflect the position of any of my previous employers or any other company I have been associated with, these comments are mine alone.
Part 218 Advanced Clean Cars
The rulemaking is described at the New York State Department of Environmental Conservation (DEC) Air Pollution Regulatory Revisions webpage. It explains that:
Emergency Rulemaking – Parts 200, General Provisions, and 218, Emissions Standards for Motor Vehicles and Motor Vehicle Engines. The emergency/proposed rulemaking will incorporate the State of California’s Advanced Clean Cars II (ACC II) regulation. The proposed amendments establish new zero emission vehicle (ZEV) and low emission vehicle (LEV IV) standards intended to reduce GHG (greenhouse gas) and NMOG + NOx (non-methane organic gas + oxides of nitrogen) emissions from light- and medium-duty on-road vehicles.
The ZEV amendments include an annual ZEV sales requirement for original equipment manufacturers (OEMs), minimum technical requirements, ZEV assurance measures, regulatory flexibilities, and simplified credit accounting. The proposed ZEV amendments will apply to 2026 and subsequent model year light-duty passenger cars (PC), light-duty trucks (LDT), and medium-duty passenger vehicles (MDPV). Starting with model year 2026, OEMs, will be required to deliver an increasing annual percentage of their sales that are ZEVs or PHEVs. This percentage requirement will start at 35% in model year 2026 and increase to 100% of sales for 2035 and subsequent model years. The proposed LEV IV amendments will apply to 2026 and subsequent model year PC, LDT, and medium-duty vehicles (MDV).
The Notice of Emergency Rulemaking will be available in the December 28, 2022 issues of the State Register and the Environmental Notice Bulletin. A virtual hearing is scheduled for March 1, 2023 at 1 pm. The comment deadline is 5 pm, Monday, March 6, 2023. Written comments may be submitted to NYSDEC, 625 Broadway, Albany, NY 12233-3254, ATTN: James Clyne, P.E., or by e-mail to air.regs@dec.ny.gov.
My Comments
For what it is worth I had been accumulating material for comments so I manage to put together something to submit. I include a link to my comments and describe them below. I submitted comments to the Department of Environmental Conservation (DEC) because the proposed rulemaking ignores feasibility, affordability, and life-cycle environmental impacts. The primary rationale for this emergency rulemaking is to implement the control strategy recommendations included in the Climate Leadership & Community Protection Act (Climate Act) Scoping Plan. The Climate Action Council deferred a feasibility analysis of reliability, affordability, and environmental impacts to the rule-making phase. The result of this irresponsible avoidance of responsibility is a regulation that could very well not be in the best interests of New York
New York agencies are begrudgingly following their mandates for public comments. In the past each rulemaking had its own web page with a bit more description. More importantly the web page would have links to each component of the regulatory package. Admittedly they often would only be in html format so trying to develop comments required downloading and reformatting. This proposed amendment refers to a single pdf format file Part 218 Advanced Clean Cars II (ACC II) that includes all the components in one massive file. If they wanted to encourage public input then they would have everything on a dedicated web page and include links to the pdf format components.
It gets worse because the rationale provided in the proposed amendment documentation is insulting. The program boils down to California did it so we can too. There is no consideration of the potential that circumstances in New York differ from California. The two-county Buffalo–Niagara Falls Metropolitan Statistical Area (MSA) had an estimated population of 1.1 million in 2020 and can be crippled by winter storms. Blizzard conditions with winds excess of 70 mph and heavy lake effect snow in the Buffalo area on Christmas Eve 2022 resulted in devastating impacts across the Buffalo area. Battery electric vehicles (BEV) mandated by this proposed rule do not do well in those conditions. Thirty-nine people died in this storm and more surely would have died if electric vehicles were the only option available. California has no similar major metropolitan areas subject to this type of extreme weather so relying on their analysis so suggesting that it will work here too is disingenuous at best.
The Climate Act mandates a full life-cycle analysis of fossil-fuel use. On the other hand, the life-cycle impacts of the so-called “zero -emissions” alternatives are ignored. BEVs may not have emissions when operating but the volume of materials needed to access the rare earth elements necessary for those technologies certainly have environmental impacts when mined and processed. The vehicles mandated by proposed Part 218 require between 1,000 and 2,000 percent more minerals to deliver the same amount of power and on the order of 400% more metals to manufacture the same vehicles. The consequence of this is that many more materials will be required. The Part 218 Regulatory Impact Statement should address where the materials necessary for BEVs come from and whether there will be sufficient quantities available for the New York transition.
I also addressed disposal of electric vehicles. The modern gas automobile is one of the most highly recycled products in human existence. After initial creation, each vehicle has an average life cycle of about 20 years. At that point it is dis-assembled and its parts are sold used in a global used parts chain, which is the most profitable part of the whole life cycle. In comparison, a Tesla has a plastic body, and a battery assembled from thousands of 18650-type cells, so it is extremely hard to recycle. The body can’t be recycled. According to recent Tesla documents the batteries are “valorized” by grinding them up and putting their waste in construction cement. In contrast, Toyota/Honda hybrid batteries are easily re-used and recycled.
The rationale for this action is that “zero-emissions” vehicles in New York are good for the planet. However, the proposed amendment simply exports emissions elsewhere. I referenced a horror story of the Indonesia Morowali Industrial Park where the danger and pollution involved in mining nickel is at a rapid pace to meet the demand for EVs. I asked how this proposed amendment comports to the environmental justice cornerstone of the Climate Act.
The regulatory documents associated with the Proposed Amendment do not address a critical feasibility problem. DEC has to address BEV charging requirements and existing on-street parking. Who is responsible for providing the on-street charging infrastructure for car owners that do not have a dedicated charging resource?
The proposed amendment mandates that starting with model year 2026, car makers, will be required to deliver an increasing annual percentage of their sales that are ZEVs or PHEVs. This percentage requirement will start at 35% in model year 2026 and increase to 100% of sales for 2035 and subsequent model years. Despite tremendous publicity and extensive subsidies nothing can obscure the fact that EVs remain extremely costly for consumers and offer unproven maintenance and reliability records. I will never buy a BEV because I cannot afford a car that does not offer the same flexibility and convenience as an ICE vehicle. Moreover, I do not want to deal with home charging infrastructure and the safety risk of Lithium-Ion battery chargers below my bed room. What happens when the public does not buy enough of these vehicles to meet those quotas?
Conclusion
This is another instance of a regulation that affects most New Yorkers but only a few are aware of its existence. I expect that the climate activists will mobilize their acolytes to submit comments supporting the rule-making. DEC will count the pro and con comments and consider implementation as a mandate from the public because more comments in favor than against will be submitted. If everyone was aware of this I am sure there number of people opposed would far outweigh the number in favor.
Worse is the complete disregard for rigor in the analysis. The primary rationale is “California said they could do it and we agree”. I did not spend sufficient time to develop comments on the California analysis but given the record of the state’s response to my comments it would only have been a waste of time.
I encourage readers to send a comment. I think it is sufficient to say that the state needs to prove that this is feasible, affordable, and doesn’t cause more environmental harm than good. They have not done that work so this should be delayed until they can prove their case.
I attended a town hall meeting for the 2023 Budget sponsored my New York State Assemblyman, Al Stirpe, to explain why I am opposed to any legislation in the budget supporting implementation of any aspect of the Climate Leadership and Community Protection Act (Climate Act). The meeting format did not lend itself to presenting anything as detailed as the comments I wanted to make. This post documents the Climate Act-related issues that came up at the meeting and the comments I wanted to make.
This is another article about my evaluation of the Climate Act that I have written because I believe the ambitions for a zero-emissions economy embodied in the Climate Act outstrip available renewable technology such that the net-zero transition will do more harm than good. Moreover, the costs will be enormous and hurt those least able to afford increased costs the most. I have worked over 40 years as an air pollution meteorologist in the electrical generating sector. After retirement, I served as Director of the Environmental Energy Alliance of New York, and later started the Pragmatic Environmentalist of New York blog that debates the challenges of balancing the risks and benefits of environmental issues. The opinions expressed in this post do not reflect the position of any of my previous employers or any other company I have been associated with, these comments are mine alone.
Everyone wants to do right by the environment to the extent that they can afford to and not be unduly burdened by the effects of environmental policies. New York environmental policies have lost sight of the need to balance the risks and benefits of environmental initiatives. I submitted comments on the Climate Act Scoping Plan and have prepared a layman’s summary of issues associated with the Climate Act. Those resources provide more backup to the references linked in the following.
Meeting Notes
Assemblyman Stirpe took an hour to go through the proposed legislative budget. He went through quite a bit of detail of all the components. The Climate Act component of the discussion was no more than five minutes of the presentation.
I got to the meeting a little early and there were people talking about the effects of the Climate Act, especially the electric vehicle mandate and the gas ban. Clearly, they were not in favor of either component. Someone in the audience made the point that most people still aren’t aware of the ramifications of the Climate Act and suggested that more outreach would have been appropriate. His response insinuated that people were getting wrong information from the fossil fuel interests. Several other people made comments that were skeptical of the rationale of an existential threat from climate change and others complained about components of the Climate Act.
Mr. Stirpe incorrectly responded to a couple of comments. To the climate change is not that big a deal comment he said he has been shoveling less snow and insinuated that climate change was to blame. I pointed out that he did not know the difference between weather and climate. Near the end of the meeting he insinuated that air quality has not improved much since 1970 and the first earth day. I was tempted to respond at the meeting but by that point everyone was tired and I thought he wouldn’t appreciate my response. The fact is that according to the EPA Air Quality Trends website Northeast air quality improvements from 2000 to 2021 have been significant:
Carbon monoxide has decreased 61%;
Nitrogen dioxide has decreased 35%;
Sulfur dioxide has decreased 90%;
Ozone has decreased 16%;
Particulate matter has decreased 31%; and
Inhalable particulate matter has decreased 43%.
Air quality is much better than it has been in the past. This misunderstanding is particularly problematic for a New York legislator because Environmental Justice activists have lobbied policymakers into accepting the PEAK coalition conclusion that “Fossil peaker plants in New York City are perhaps the most egregious energy-related example of what environmental injustice means today” and are putting tremendous pressure on the legislature to act. However, the analysis that forms the basis of that conclusion is flawed. The health impacts claimed in that analysis are for ozone and inhalable particulates that are secondary pollutants that form far downwind of the adjoining neighborhoods of peaking power plants.
My Climate Act Comments
I gave Assemblyman Stirpe a document with the following information.
I am opposed to any legislation implementing the Climate Act because the Hochul Administration has not done a feasibility analysis that proves that the Scoping Plan list of control strategies can maintain current levels of reliability, will be affordable, and will not do more environmental harm than good. I have written over 290 articles on my Pragmatic Environmentalist of New York blog about the Climate Act and I am convinced that the state is on a dangerous path.
New York greenhouse gas emissions are less than one half percent of global emissions per year but global greenhouse gas emissions have been increasing by more than one half percent per year on average since 1993. Anything we do will be supplanted by emissions elsewhere in less than a year. That does not mean we should not do something but it does mean that we can take the time to do it right.
The New York Independent System Operator recently published “Information for Policy Makers” that summarizes their activities “to design and implement the operations, planning and market enhancements necessary for the grid in transition.” I have noted that their work describes the situation well. New York electric gird is a complex system that has evolved over many years. It is a highly reliable system using proven hardware and procedures. Reliance on unprecedented levels of wind and solar has not been demonstrated successfully anywhere. The energy storage system technology to account for intermittent wind and solar has not been tested on the scale necessary for the proposed use. These facts make it an ill-conceived plan that will likely end in blackout. Furthermore, the rush to electrify everything is not safe. What will happen when everything has been converted to electricity and there is an ice storm?
The Scoping Plan does not include a detailed accounting of the costs to consumers. The administration claims that the costs of inaction are greater than the costs of action but that claim is misleading and inaccurate. It is misleading because the Scoping Plan costs of action only includes the costs of the Climate Act and do not include all the costs to meet the net-zero by 2050 target, including vehicle electrification. It is inaccurate because it double counts the societal benefits of reductions.
The Climate Act only accounts for fossil fuel life-cycle costs and environmental impacts while ignoring the lifecycle impacts of wind, solar, and energy storage technologies. Those “zero-emissions” resources may not have emissions when generating electricity but the volume of materials needed to access dilute wind and solar energy and the rare earth elements necessary for those technologies certainly have environmental impacts when mined and processed. The large number of wind turbines and solar panels will also create massive amounts of waste when they are retired. Furthermore, the cumulative environmental impacts of thousands of wind turbines and square miles of solar panels has not been evaluated for the levels proposed in the Scoping Plan.
Opposition to Following Legislation
My submittal noted that I oppose the following legislative proposals. I oppose all components of the NY Renews Climate Jobs, and Justice package including the Climate and Community Protection Fund as well as the following specific bills:
A4592/S2016 “NY Home Energy Affordable Transition Act”;Aligns utility regulation with state climate justice and emission reduction targets; repeals provisions relating to continuation of gas service; repeals provisions relating to the sale of indigenous natural gas for generation of electricity.
A4306/S732 DEC to establishes a carbon dioxide emissions price for electric generation from carbon-based fuel; creates a carbon dioxide emissions fund; distribute revenue to low-income individuals and communities and to support mass transit.
A920/S562 the “all-electric building act”; provides that the state energy conservation construction code shall prohibit infrastructure, building systems, or equipment used for the combustion of fossil fuels in new construction statewide no later than December 31, 2023 if the building is less than seven stories and July 1, 2027 if the building is seven stories or more.
A279/S4134“New York State Build Public Renewables Act”; requires the New York power authority to provide only renewable energy and power to customers; requires such authority to be the sole provider of energy to all state owned and municipal properties; requires certain New York power authority projects and programs pay a prevailing wage and utilize project labor agreements.
S4854/no same as. Requires agencies to develop recommendations regarding the establishment of microgrids at critical facilities.
A4393/S2007. Establishing a one hundred percent clean renewable energy system for electricity by two thousand thirty-four; such energy system shall include solar, wind, geothermal and tidal sources.
A4866/no same as. “fossil fuel facilities replacement and redevelopment blueprint act” requires NYSERDA, DPS and DEC to prepare a blueprint to guide the replacement and redevelopment of the oldest and most-polluting fossil fuel facilities and their sites by 2030.
A411/S3581 Declares a climate emergency and places a ban on fossil fuel infrastructure projects but shall not apply to repair or maintenance of existing infrastructure.
Support for following legislation:
I listed the following two legislative proposals as ones I think will help address my concerns.
S2030/no same as Directs the public service commission in consultation with NYSERDA to conduct a full cost benefit analysis of the technical and economic feasibility of renewable energy systems in the state of New York and to compare such directly with other methods of electricity generation within nine months after the effective date and every four years thereafter.
A4999/S2474 Directs the state energy planning board to conduct a study of the technical and economic feasibility of a one hundred percent renewable energy system and a reduction in greenhouse gas emissions.
Conclusion
I don’t think Assemblyman Stirpe understands just how poorly informed he is because of the mis-information in the Scoping Plan and the constant propaganda from the media and climate activists. I had offered in the past to give him a briefing but he refused. I do not expect to hear anything as a result of the comment I gave him. If did respond I would ask him to put pressure on the Hochul Administration to give a full accounting of the costs, do a feasibility study of the effects on electric system reliability and do a cumulative environmental impact analysis of the Scoping Plan recommendations for wind and solar resources. Until the Scoping Plan is proven to be feasible, it is inappropriate to support any implementing legislation.
According to a press release: “New York State Senate Republican Leader Rob Ortt, members of the Senate Republican Conference, and statewide energy stakeholders today unveiled a package of smart energy policies to pursue a cleaner energy future. The plan puts affordability and reliability first for New York ratepayers, in sharp contrast to some of the radical proposals coming out of Albany.” I am highlighting a link to the press conference where this is announced because Richard Ellenbogen did a masterful job explaining his concerns about the net-zero transition plan and they match my worries.
This is another article about the Climate Act implementation plan that I have written because I believe the ambitions for a zero-emissions economy embodied in the Climate Act outstrip available renewable technology such that the net-zero transition will do more harm than good. The opinions expressed in this post do not reflect the position of any of my previous employers or any other company I have been associated with, these comments are mine alone.
Background
The implementation plan for New York’s Climate Act “Net Zero” target (85% reduction and 15% offset of emissions) by 2050 is underway. At the end of 2022 the Climate Action Council completed a Scoping Plan that makes recommends strategies to meet the targets. The Hochul Administration is developing regulations and proposing legislation to respond to those recommendations in 2023.
Unfortunately, the Scoping Plan is just a conglomeration of control strategies that are projected to provide the emission reductions required. The Plan did not do any feasibility analyses or address any “what if” questions raised by the NYISO or anyone else for that matter. As a result, I am convinced that it will fail.
I recently published Richard’s analysis of New York’s energy storage plan as a guest post. Ellenbogen is the President of Allied Converters that manufactures food packaging. His facility is about 55,000 square feet and does a lot of manufacturing with heat to seal the bags, all electrically driven. The facility has solar panels and uses co-generation. He explains:
In 2008, the average energy cost per square foot for a commercial facility in Westchester was $1.80. We were at 16% of that 12 years later and even with the increases, we are at 62% of that 14 years later. That has been done while having a carbon footprint 30% – 40% lower than the utility system. The $1.80 per foot also included commercial office space and our operation is far more energy intensive than an office. We use energy extremely efficiently and as a result, our bills are much lower than everyone else.
NYS Senate Republican Conference for Smart Energy Solutions
The event was an announcement for “smarter energy solutions”. The Republicans are calling for several alternatives and affordable amendments to the state’s current course of action, including:
Independent cost studies and full transparency;
Supporting diverse energy sources;
Keeping needed power supply online to ensure the reliability of New York’s power grid; and
Repealing and opposing anti-market mandates on consumers.
Richard was introduced as during the press conference to describe his technical concerns. He explained that he was representing an engineer’s perspective of the Climate Act Scoping Plan. I think his comments are a nice short and sweet description of the underlying technical issues that make the net-zero transition a very risky proposition that will cost too much for the state to afford. His email to me said:
The following link is to my presentation at today’s Senate Republican Press Conference at the Capital in Albany. I want to thank them, and Senator Mattera in particular, for offering me the platform to present reality to a wider audience before State policy causes major damage to our energy systems, public health, and to the state economy.
During the question and answer period Richard said he made a power point presentation that explained his concerns about the proposed net-zero energy transition before the Climate Act was signed. That document and other information is available on his website.
Conclusion
There are a few minor issues I might quibble with but overall this is a great summary of the issues facing New York with this plan. I only hope that it wakes some people up.
Gov. Kathy Hochul’s proposed budget for fiscal year 2024 includes billions of dollars for climate-related funding but climate activists are not satisfied. This post highlights things they want to implement in the Climate Leadership and Community Protection Act (Climate Act). I also want to point out that these are only the acknowledged parts of the funding because there are major costs buried in the utility costs that won’t be counted by the Governor.
This is another article about the Climate Act implementation plan that I have written because I believe the ambitions for a zero-emissions economy embodied in the Climate Act outstrip available renewable technology such that the net-zero transition will do more harm than good. The opinions expressed in this post do not reflect the position of any of my previous employers or any other company I have been associated with, these comments are mine alone.
Even with its billions of dollars in climate-related funding, policy experts said Gov. Kathy Hochul’s proposed budget for fiscal year 2024 needs more vigor to meet the urgency of the climate emergency.
The article mentioned that the budget package includes specific items that will add costs. There is a proposal for a cap and invest program. To my knowledge the Hochul Administration has not admitted how much this is expected to cost. The Executive Budget would also add 231 new staff positions at the DEC to enact and enforce regulations for climate laws. The article notes that “The budget is sprinkled with incentives such as $200 million to start EmPower Plus, a program from the state’s energy research and development authority that will provide 200,000 low-income residents with free energy-efficiency solutions for their homes, such as insulation, electrification and energy-saving appliances.” I was not surprised by the statement in the introductory paragraph because I think costs will be enormous.
What did catch my attention were the comments by Julie Tighe, president of the New York League of Conservation Voters. “We know ultimately it’s going to take a lot more money to do that,” Tighe said. “It’s a good down payment to make sure that we’re starting to take action and helping people who are least able to afford it.” I want readers to know her vision:
The governor’s budget also includes big-ticket items like more than $9 billion for mass transit improvements, a historic amount that’s 10% more than last year. But the state continues to invest record amounts on infrastructure for modes of transportation that are responsible for 28% of the state’s greenhouse gas emissions, such as roads and bridges. Tighe contends that massive counterinvestments are needed to get New Yorkers to stop driving and use cleaner forms of transportation that are also affordable and viable alternatives.
“We can’t drive our way out of the climate crisis,” Tighe said. “We need people to take mass transit. We need people to be taking e-bikes and walking more and using regular bikes.”
An organization that is located at 30 Broad Street in New York City has mass transit options. For those of us that live in upstate New York public transit options are limited and e-bikes, walking and regular bikes are not a credible option in the winter even if there are no distance limitations.
It has been educational to watch the gas ban messaging unfold. The Gothamist explains:
The executive budget, for example, features a controversial gas ban for new buildings, except it doesn’t go as far as some state legislators and environmental experts think it could. The All-Electric Building Act — a state bill currently stalled in the Senate’s finance committee — would prohibit the use of fossil fuels in newly constructed buildings and require those structures to rely completely on the electrical grid on a faster timeline than the governor is recommending.
Hochul’s version also comes with many exemptions and later deadlines for switching from gas to electric in homes and buildings. Buildings are the state’s largest climate polluters, responsible for 32% of total greenhouse gas emissions. Experts have called the electrification of buildings “low-hanging fruit” when it comes to making an impact in mitigating global warming.
That sums up the climate activist position. But the reality is that they are a small, albeit loud, constituency. I suspect that the majority of those currently using gas want to continue using it. In response to concerns raised by those folks, there also has been a flurry of news articles worried that “misinformation is spreading about Governor Kathy Hochul’s plans with a phase-out of fossil fuel systems.” James Hanley eviscerates the Administration response to the gas stove ban:
As the old Marx Brothers joke goes, “Who are you going to believe, me or your own eyes?”
Doreen Harris, president and CEO of the New York State Energy Research and Development Authority, told lawmakers that she was setting the record straight, and that “We are not taking away gas stoves, as one example of perhaps misinformation we need to correct.”
But the Climate Action Council that she Co-Chaired produced a Climate Leadership and Community Protection Act (CLCPA) Scoping Plan – which she voted to approve – that says the state will in fact be taking away gas stoves.
It’s right there on page 190, in the chapter on buildings, for all the world to read.
So where’s the misinformation?
Indeed, where is the misinformation? My position is that much of the misinformation is coming from the Hochul Administration. Most of this is political gamesmanship where the exact wording of the legislative or regulatory proposal allows some wiggle room when confronted with an inconvenient question. In the instance of the gas stove ban she falls back on claiming that she only wants to ban gas in new homes and moves on before the Scoping Plan reference can be brought up. The biggest item of the Administration’s overt misinformation is the ultimate cost to get to the Climate Act target of net-zero by 2050. The Administration claim in the Scoping Plan is that the “costs of inaction are more than the costs of action”. Aside from the biases and exaggerations of the alleged benefits, the official line consistently ignores the caveat that the Scoping Plan costs only include the costs of the Climate Act itself and not the costs of “already implemented” programs that are necessary to get to net-zero by 2050. The already implemented programs include the following:
Growth in housing units, population, commercial square footage, and GDP
Federal appliance standards
Economic fuel switching
New York State bioheat mandate
Estimate of New Efficiency, New York Energy Efficiency achieved by funded programs: HCR+NYPA, DPS (IOUs), LIPA, NYSERDA CEF (assumes market transformation maintains level of efficiency and electrification post-2025)
Funded building electrification (4% HP stock share by 2030)
Corporate Average Fuel Economy (CAFE) standards
Zero-emission vehicle mandate (8% LDV ZEV stock share by 2030)
Clean Energy Standard (70×30), including technology carveouts: (6 GW of behind-the-meter solar by 2025, 3 GW of battery storage by 2030, 9 GW of offshore wind by 2035, 1.25 GW of Tier 4 renewables by 2030)
Needless to say when the costs of these programs are added to the Climate Act program costs, the costs of the actions necessary to get to the Climate Act net-zero by 2050 target far exceed the costs of inaction. Nonetheless, the climate activists want more funding:
“The governor’s budget proposal is lacking when it comes to ambitious climate funding,” said Elizabeth Moran, a New York policy advocate with EarthJustice, a nonprofit public interest environmental law organization. “There’s some funding there, but it’s far from what we know is needed.”
When it comes to carbon emissions from buildings, Hochul has planted some long-awaited policies in her budget, including a mandate for all-electric new construction that includes a few exemptions, such as commercial kitchens.
But the timeline is delayed relative to other state proposals and some local laws. For smaller buildings, Hochul’s plan would take effect in 2026. That differs from the All-Electric Building Act, which calls for the electrification of new smaller buildings by 2024. Likewise, New York City’s Local Law 97 wants to electrify any new building larger than 25,000 square feet by next year.
Hochul’s plan would delay this regulation for new commercial buildings until 2029. The All-Electric Building Act calls for implementation by July 2027. Facilities such as laundromats and hospitals would not be required to comply. Fossil fuels will continue to be used in backup generators.
I am opposed to any “all-electric” legislation or regulation because of safety: what happens when there is an extended electric outage? The article notes that the Adminstration tries to get around this by saying “fossil fuels will contine to be used in backup generators”. What is the percentage of fossil fuel sales for backup gnerators sold by suppliers? My guess is that it is a small fraction, at most 10%, of their sales. Is there any scenario where those suppliers will be able to remain viable when they lose 90% of their business?
Another example of the desires of climate activists is an accelerated schedule. It can be argued that the state’s leading climate activist is Robert W. Howarth, Ph.D., the David R. Atkinson Professor of Ecology & Environmental Biology at Cornell University. In his statement supporting his vote to approve the Scoping Plan, he reiterated his claim that he played a key role in the drafting of the Climate Act, developed the irrational methane requirements, and credited one politician for getting the Act passed. The article noted his desire and others that the phase-in should speed up:
Dr. Robert Howarth, a member of the Climate Action Council, said there is no reason to wait to require electric appliances in new construction, especially when they will have to be replaced in the case of heating and hot water, when laws take effect. Howarth said following the new regulations could save homeowners money in the long run while also cutting emissions faster. More than a third of building emissions come directly from natural gas use in cooking, heating and hot water. And a year does make a difference when the total leaks nationwide from turned-off gas stoves add up to the annual carbon dioxide emissions from half a million cars.
To speed up the transition, more incentives and assistance for homeowners in the budget could go a long way, said Dr. Gernot Wagner, a climate economist at Columbia Business School. Even homeowners who don’t qualify may also switch to electric as a result of wider adoption. The proposed $200 million for the EmPower program is a drop in the bucket when there are more than 7.5 million households in the state, and Tighe said assistance is needed for other homeowners, even large building owners, especially since New York is the country’s No. 1 user of heating oil.
Under Hochul’s proposal, new buildings can’t have cooking appliances that use fossil fuels such as natural gas. Existing buildings won’t be required to swap their gas stoves for electric models, even when purchasing replacements. By 2030, the governor would ban fossil fuel-powered heating or hot water equipment in homes.
The author of this article did not pick up on the fact that the Scoping Plan recommends that existing buildings will have to replace any fossil-fired appliance with an electric appliance starting in 2035. By then it will be somebody else’s problem and Hochul will be long gone.
Governor Hochul’s Executive Budget – Energy
The Gothamist article discussed two aspects of the electric energy system. Apparently because there isn’t enough interest by the private sector to build the infrastructure necessary for the net-zero transition, the Executive Budget proposed letting the public power operator get involved:
The Hochul is empowering the New York Power Authority to develop, finance, construct, own, operate and maintain renewable energy projects. This move will ensure that enough zero-emissions power sources are built. The governor is calling for the phaseout of electricity production from gas-fired peaker plants by 2035, and wants to support the training of a green power workforce.
The private sector and customers have traditionally shouldered the cost of renewable energy projects. They’re handled outside of the budget, mostly through renewable energy credits.
I have no opinion on the value of this approach but picking and choosing when the State depends on the market for electricity supply seems to be a slippery slope. The other aspect concerns transmission projects:
“The state budget does not include funding for transmission infrastructure,” said Jason Gough, deputy communications director for the governor’s office. “Utilities typically pay for the cost of power infrastructure, including transmission lines. These costs are passed to utility ratepayers through the delivery charge for electric service.”
Let me translate Gough’s comments. “These costs are passed to utility ratepayers through the delivery charge for electric service” means “The costs of the Administration’s policies that we won’t let the utility companies itemize for their ratepayers, are passed on so that the ratepayers will vent their anger at the utility companies rather than the Administration”. The next press release will say “The utility bill increase is not our fault, it is greedy industry’s fault.”
The article goes on:
But transmission lines and other infrastructure are needed to bring clean power to the downstate grid, which is mostly dependent on fossil fuels. New York City doesn’t have the space, Tighe said, to build enough solar and wind power. The absence of direct funding for this key infrastructure could hinder the city in reaching its goal of a zero-emission grid.
“New York City needs a lot more power lines going toward the city in order to enable the sort of clean energy transition, the rapid transition that is necessary now,” Wagner said. “Transmission is the biggest bottleneck to decarbonize New York state.”
Several days ago, I wrote about the hidden costs for this infrastructure. The New York Public Services Commission recently approved rate increases for this purpose in case 20-E-0197. The transmission upgrade projects will cost $4.4 billion to support 3.5 GW of renewable energy or $1.26 billion per GW. An additional 2.8 GW is expected by 2025 and another 4.1 GW by 2030 according to Scenario 2 of the Scoping Plan. At that rate, ratepayers will be on the hook for a total of $13.05 billion through 2030. It is disappointing to me that Upstate ratepayers are on the hook for bill impacts up to and exceeding twice the bill impacts of Con Ed ratepayers who need Upstate power to reach the goal of a zero-emission grid. If the Hochul Administration would stop pandering to her political base and have the courage to be responsible for these costs then they should be spread equitably over all the state.
The Gothamist article describes proposed policies for transportation:
Public transportation will receive a big boost in the proposed budget. The MTA could get around $8 billion, a 10% increase. The funds will address the revenue deficit incurred as a result of a drop in ridership during the pandemic. But Moran said additional financial support is needed for faster fleet electrification, and more of it.
For individual vehicle electrification, the DOT expects to receive $175 million from the federal government as part of the Infrastructure Investment and Jobs Act over the next five years to build fast charging stations along New York’s interstate highways.
Hochul has also included congestion pricing as a revenue stream to help fund the ailing transportation authority. Tighe applauded the measure as a “good incentive for people to stop driving in Manhattan.”
The governor’s proposal also wants to fund mass transit outside of New York City. It includes nearly $1 billion for non-MTA public transportation, including some bus electrification and rehabilitation of upstate light rail.
Affordability is important in making public transportation a viable alternative to driving, Tighe said.
As noted previously, climate activists are big proponents of public transit. Unfortunately, that is only a solution in urban areas. None of these proposals benefit rural Upstate New York.
Cleaner modes of transportation require more funding to substantially reduce emissions, Wagner said. New bike lanes and the expansion of car-free pedestrian areas would make an impact on reaching goals and encourage these commuting modes, he added. The budget proposal doesn’t specify how much money will go to these environmentally friendly travel alternatives, and there are no direct amounts either. But these projects can be funded through the state DOT’s small umbrella programs such as the Transportation Alternatives Program and clean air funding initiatives.
Other climate activist strategy favorites are bike lanes and pedestrian areas. One of the issues with these green solutions is that they don’t work all the time but the activists demand complete compliance. In the winter bike lanes in many parts of the state are dangerous and pedestrian areas challenging. Winter is also a reason that many Upstaters are reluctant to depend completely on battery electric vehicles.
“Is this [budget] going to set us on a completely different path commensurate with the challenge? No,” said Wagner. “It is doing a lot of good things. Not to be ungrateful, but I thought we all recognized that we are in a climate crisis here.”
New York’s Greenhouse Gas (GHG) emissions are less than one half one percent of global emissions and since 1990 global GHG emissions have increased by more than one half a percent per year. That does not mean that we should not do something but it does mean that even if there is a climate crisis New York cannot do anything about it alone. We must make sure that we are not doing more harm than good with the net-zero implementation.
Discussion
This is just a part of the legislative initiatives to meet the Climate Act targets. There are many member items also up for consideration. In addition, there are also regulatory initiatives. For example, the Department of Environmental Conservation is promulgating Part 218: Advanced Clean Cars II (ACC II) as part of the reckless push for all electric transportation. The emergency/proposed rulemaking will incorporate the State of California’s Advanced Clean Cars II (ACC II) regulation into New York’s existing rules.
My overarching problem with all these initiatives to meet the recommendations of the Scoping Plan is that the Integration Analysis that provided the background for the Plan did not include a feasibility analysis. The Integration Analysis is simply a list of potential control strategies with estimated emission reductions that when combined together provide the controlled emissions appropriate for the emission targets. There was no consideration of “what if and how about” questions like how are all the people who live in homes that have to park on the street going to be able to charge their cars? What if the magical solution necessary to keep the lights on called dispatchable emissions-free resources is not available on the schedule of the Climate Act. The Hochul Administration has not given consumers the expected costs or addressed the question what happens after everything is electrified and there is an ice storm.
Consider the feasibility of just one control strategy component. The article notes that NYSDOT expects funding of $175 million from the federal government as part of the Infrastructure Investment and Jobs Act over the next five years to build fast charging stations along New York’s interstate highways.. A gas station fuel pump costs about $20,000 and can serve a customer in less than six minutes. A 50-kilowatt fast DC charger costs about $100,000 and can serve an EV customer in about 30 minutes. The gas pump can serve five times as many customers for one-fifth of the capital cost of a high-speed charger. Think about the feasibility issues. The $175 million can only fund 1,750 fast chargers. The closest NYS Thruway service center to my home has ten automotive fuel pumps but is a small service center. Consider what would be needed to maintain the same level of refueling capacity. The service center would need 50 charging stations to provide the same amount of refueling capacity and I suspect that would blow through the $175 million for the 27 service centers on the NYS Thruway. The space available and energy needed for those chargers means physical upgrades are needed at the service centers. Throw in the fact that for a long time it will be necessary to provide gasoline too. Finally, the NYS Thruway is just under 500 miles and the total NYS interstate mileage is 1730 miles so the $175 million would provide recharging support for less than half the interstate mileage. The implementation logistics for this component of the electric vehicle requirement appear unrealistics so the onus should be on the State to prove that this can work. They have not done this for any of the control strategies included in the Scoping Plan.
If any reader has concerns similar to mine, I encourage you to contact your elected officials and demand answers to these “what if” and “how about” questions before they vote on or support any legislation related to the Climate Act. There are opportunities to comment on regulations. A virtual hearing is scheduled for March 1, 2023 at 1 pm for Part 218: Advanced Clean Cars II (ACC II). The comment deadline is 5 pm, Monday, March 6, 2023. Written comments may be submitted to NYSDEC, 625 Broadway, Albany, NY 12233-3254, ATTN: James Clyne, P.E., or by e-mail to air.regs@dec.ny.gov.
Conclusion
Climate activists like Robert Howarth and Julie Tighe are pushing the state down a road towards a canyon without a bridge. Howarth’s arguments that Mark Jacobson’s academic analysis of wind, water, and solar energy is proof that a net-zero transition is cost-effective and possible is misplaced. The reality is that the Climate Act is promoting a system with less stability, robustness, and reliability that will undoubtedly raise costs a lot.
It is not only the disconnect relative to technical limitations but the attitude of the activists that disappoints. Tighe said: “We can’t drive our way out of the climate crisis” relegating everyone in the State who must rely on driving because they have no viable alternative to second class citizenship. This is no less demeaning than Marie Antoinette’s infamous “Let them eat cake”. Unfortunately, it can only get worse. Now there are climate scientists who are arguing for rationing to fight climate change.
If the Hochual Administration wants to solve their alleged climate crisis then they have to come up with a solution that provides the developing world with the prosperity and quality of life that comes with abundant and cheap energy. It is immoral to deny them that right because the best adaptation strategies for extereme weather require prosperous societies. The onus is on New York to provide them with affordable emissions-free energy technology or get out of the way. At home, the only means left to avoid the Climate Act stampede that will destroy our existing reliable and affordable energy system is to speak up now and vote anyone who supports this out of office before the we go over the cliff.
The Climate Leadership and Community Protection Act (Climate Act) has a legal mandate for New York State greenhouse gas emissions to meet the ambitious net-zero goal by 2050. This article describes the comments I submitted to the Climate Action Council on Chapter 17: Economy-Wide Strategies. I am not sure why they did not refer to these as policies that effectively price GHG emissions because that is what they are talking about.
Everyone wants to do right by the environment to the extent that they can afford to and not be unduly burdened by the effects of environmental policies. I have written extensively on implementation of New York’s response to that risk because I believe the ambitions for a zero-emissions economy embodied in the Climate Act outstrip available renewable technology such that it will adversely affect reliability, impact affordability, risk safety, affect lifestyles, and will have worse impacts on the environment than the purported effects of climate change in New York. New York’s Greenhouse Gas (GHG) emissions are less than one half one percent of global emissions and since 1990 global GHG emissions have increased by more than one half a percent per year. Moreover, the reductions cannot measurably affect global warming when implemented. This page documents all the comments that I submitted as part of the Climate Leadership and Community Protection Act implementation process. The opinions expressed in this post do not reflect the position of any of my previous employers or any other company I have been associated with, these comments are mine alone.
Climate Act Background
The Climate Act establishes a “Net Zero” target (85% reduction and 15% offset of emissions) by 2050. The Climate Action Council is responsible for preparing the Scoping Plan that will “achieve the State’s bold clean energy and climate agenda”. They were assisted by Advisory Panels who developed and presented strategies to the meet the goals to the Council. Those strategies were used to develop the integration analysis prepared by the New York State Energy Research and Development Authority (NYSERDA) and its consultants that quantified the impact of the strategies. That material was used to write Draft Scoping Plan that was released for public comment at the end of 2021. The Climate Action Council will revise the Draft Scoping Plan based on comments and other expert input in 2022 with the goal to finalize the Scoping Plan by the end of the year.
I prepared this comment because my extensive experience with the Regional Greenhouse Gas Initiative has shown that there is a major disconnect between the theory of a carbon pricing program and reality. This disconnect is also evident in the NYISO carbon pricing initiative and the Draft Scoping Plan carbon pricing initiatives.
Summary
Based on the format of Section 17, it was written to address specific issues raised by the Climate Action Council. As a result, it gets bogged down into details about specific issues raised by council members rather than looking at the big picture. In theory, a price on carbon is a great idea. The Council has not considered the theory relative to their perceptions.
My overview comments explain why I believe carbon pricing will always be a regressive tax based on a post I did on carbon pricing. I also think that there are a number of practical reasons that carbon pricing will not work as theorized. Because a global program is impractical, leakage is always going to be a problem. All carbon pricing proposals need to address the problem that as carbon emissions go down revenues go down relative to the fact that reductions get more difficult and expensive as control efficiency increases. The Council members who support carbon pricing seem to be blissfully unaware of the realities of the energy market that are at odds to their theories. Based on observed results I think that indirect market signals are going to lead to less cost-effective reductions in the time frame necessary for the aggressive reduction rules. To date, carbon pricing for the electric sector only considers generation costs which leads to cost shifting the additional costs to supply electricity when and where it is needed to be covered outside the carbon pricing framework. Supporters under-estimate the very real problems of implementation logistics. My concerns about carbon pricing are supported by the recently completed a relevant study done by Regulatory Analysis Project (RAP): Economic Benefits and Energy Savings through Low-Cost Carbon Management for Vermont.
In addition to my practical concerns “A Practical Guide to the Economics of Carbon Pricing by Ross McKitrick defines how carbon pricing is supposed to work in theory. He explains that “First and foremost, carbon pricing only works in the absence of any other emission regulations.” The Guide goes to note “another important rule for creating a proper carbon-pricing system is to be as careful as possible in estimating the social cost of carbon”. He argues that “whatever the social cost of carbon is determined to be, the carbon price must be discounted below it by the marginal cost of public funds (MCPF) — that is, the economic cost of the government raising an additional dollar of tax, on top of what is already being raised”. The Draft Scoping Plan does not even recognize the importance of this aspect of carbon pricing. Finally, he notes that: “it needs to be remembered that carbon pricing works because it is a market-based policy: it works with market forces, not against them. He concludes: “There may be many reasons to recommend carbon pricing as climate policy, but if it is implemented without diligently abiding by the principles that make it work, it will not work as planned, and the harm to the Canadian economy could well outweigh the benefits created by reducing our country’s already negligible level of global CO2 emissions.”
Affordable Revenues
I think the Climate Action Council has to define affordable. In the absence of any numbers in the Draft Scoping Plan related to potential revenues I calculated my own estimates. The total New York State GHG emissions in 2019 are 379.43 million metric tons of CO2 equivalent. If the carbon price was set at the 2022 New York State Value of Carbon Guidance value of $129, then the economy wide cost would be $48.9 billion. I submit that is not affordable for any New Yorkers and could not possibly be designed to avoid regressive impacts.
Clearly, setting a carbon price for all New York emissions is unaffordable so the Climate Action Council should consider setting a price on different sectors. Table ES.2: 2019 New York State GHG Emissions is from the 2021 Statewide GHG Emissions Report and lists the emissions by sector.
I used this GHG emissions information and the 2022 value of carbon of $129 to look at several emission scenarios in the next table. Using the IA-Tech Supplement Annex 2 Emissions Key Drivers spreadsheet 2022 Gross State Product and population each scenario estimates the cost per month for each NYS resident and the cost as a fraction of the GSP. If all the emissions were included in the carbon pricing scheme the cost per resident would be $262.50 and the costs are 3.36% of the GSP. The Candidate scenario only includes the Energy and Industrial Processes and Product Use sectors reduces the costs slightly. The Combustion scenario only includes in-state combustion emissions and drops the total revenues by more than half. Finally, I excluded everything except the electric power sector. Those costs are still pretty high: $12.05 per person per month and 0.15% of the GSP.
The estimates of current (2019) emissions coupled with the New York value of carbon yield very high revenues. On October 26, 2021, the AP-NORC Center and the Energy Policy Institute at the University of Chicago (EPIC) released the results of a survey that claimed that a majority of Americans regard climate change as a problem of “high importance”. It also included survey questions asking whether respondents would support, oppose, or neither support or oppose a law that imposed “a fee on carbon to combat climate change”. The survey question asked “If the law passed, it would increase the average amount your household pays each month for energy, including electricity, heating gas, and gasoline or diesel for your car by a total of X dollars per month” where respondents were randomly assigned a $1, $10, $20, $40, $75, or $100 cost increase. For a $1 per month increase, 45% would support, 30% would oppose, and 25% would neither support or oppose. For a $100 per month increase, 20% would support, 62% would oppose, and 18% would neither support or oppose. Only 45% support $1 per month per household and $1 per month per person only provides revenues of $237 million. All of the projections in Table 2 estimate costs far higher than that level so I do not think the public perception of affordable will be met by any carbon pricing scheme that uses the New York value of carbon.
Another way to look at affordable costs is to set the costs per month per person and the costs relative to the GSP and see what revenues would be generated. The following table provides that information. All of the projected costs exceed the AP-NORC Center and EPIC survey category where 45% support $1 per month per household.
The Draft Scoping Plan provides no details to recommend what is affordable. Rather than getting bogged down in implementation issues, the Climate Action Council and the Climate Justice Working Group should address what is affordable. That recommendation is going to drive the specifications for all three of these carbon pricing approaches.
Conclusion
The theory of carbon pricing is embraced by leading economists. However, advocates for such a scheme in New York do not understand that the plans proposed are not like the theory. My comments showed that there are implementation issues and that the Draft Scoping Plan proposed pricing schemes do not match the theory. Ross McKitrick sums it up: “There may be many reasons to recommend carbon pricing as climate policy, but if it is implemented without diligently abiding by the principles that make it work, it will not work as planned, and the harm to the Canadian economy could well outweigh the benefits created by reducing our country’s already negligible level of global CO2 emissions.” Substitute New York for Canada and it describes the likely effect of the carbon pricing plans proposed.
In a couple of weeks, the comment period closes for the Draft Scoping Plan that outlines how New York is to achieve its Climate Leadership and Community Protection Act net zero ambitions. Despite the fact that any rational observer can only conclude that there is no real plan for a reliable electric system and the Plan provides very little cost information, environmental advocates have convinced the most progressive of the State’s legislators that it is not enough. On May 26 Assemblyman Jeffrey Dinowitz, Chair of the Assembly Codes Committee, and State Senator Liz Krueger, Chair of the Senate Finance Committee, along with environmental advocates and experts, announced the introduction of the Climate Change Superfund Act (S.9417). In brief it codifies the litigation against fossil fuel companies as a cash cow for adaptation programs.
In light of the billions of dollars in damages that New York State has suffered as a result of climate change, and the tens of billions more to come in future decades, this first-in-the-nation legislation will use the polluter-pays model exemplified by existing federal and state superfund laws to collect $30 billion over ten years for climate change adaptation from the parties most responsible for causing the climate crisis – fossil fuel companies.
Right now consumers are facing pain at the pump as well as in their gas and electric bills. At the same time, the oil and gas industry is raking in enormous profits.The Climate Change Superfund Act will claw back some of the oil and gas industry’s recent windfall profits and use them for adaptation costs that would otherwise be charged to state taxpayers. The program is designed to prevent such costs from being passed on to consumers.
“The climate crisis is here, right now, and it’s already causing billions of dollars in damage and a growing death toll in New York State,” said Senator Krueger. “We must begin to make the investments necessary not only to mitigate future climate change, but to adapt to and defend ourselves from the damage that’s already been done. The cost of inaction is inconceivable – in money, in lives, and in countless other ways. Nonetheless, there will be a large price-tag to the work we have to do, and it’s only fair that the companies who made the mess should pay for cleaning it up. The Climate Change Superfund Act is one critical piece of the puzzle of funding our state’s response to the climate emergency.”
“The damage done to our climate and to our communities from decades of corporate disregard for scientific evidence is irreparable and omnipresent,” said Assemblyman Dinowitz. “As we continue to take big steps towards a green future in order to mitigate the worst potential impacts from climate change, the Climate Change Superfund Act would be a vital resource to invest in adaptive and resilient infrastructure, and it is common sense to charge those who did the most damage to our climate for the costs of keeping people alive amidst our new climate reality.”
Rationale
Unfortunately, their rationale uses the same line of reasoning that was used to pass the Climate Act. Because “everybody” knows that climate change causes unusual weather and the climate and weather illiterate think anecdotes prove their case, they actually believe that New York has suffered billions in damages from climate change and not just weather.
The bill language says:
Climate change, resulting primarily from the combustion of fossil 6 fuels, is an immediate, grave threat to the state’s communities, environment, and economy. In addition to mitigating the further buildup of greenhouse gases, the state must take action to adapt to certain consequences of climate change that are irreversible, including rising sea levels, increasing temperatures, extreme weather events, flooding, heat waves, toxic algal blooms and other climate-change-driven threats. Maintaining New York’s quality of life into the future, particularly for young people, who will experience greater impacts from climate change over their lifetimes, will be one of the state’s greatest challenges over the next three decades. Meeting that challenge will require a shared commitment of purpose and huge investments in new or upgraded infrastructure.
Implementation
It is a holiday weekend and I have other things to do than to try to make sense of the implementation language in the proposed legislation. If ever get to the point where I can stomach looking into the plan, I will try to figure out how they account for the fact that New York’s total GHG emissions are less than half a percent of total global emissions. What share of global emissions is accountable for New York’s alleged problems? Shouldn’t that be somehow a function of New York emissions? I suspect the innumeracy of the authors of the legislation affects the plans and upon closer inspection will undermine the whole thing.
My impression skimming through the legislation is that this applies to fossil fuel production. Ronald Stein recently pointed out that the primary usage of crude oil is “to manufacture derivatives and fuels which are the ingredients of everything needed by economies and lifestyles to exist and prosper”. If I am right that this legislation covers fossil fuel production then how do they hope to address that aspect without unduly impacting consumers?
One last point. In another outstanding example of cluelessness, the underlying argument that the primary reason fuel prices have gone up is because the evil oil companies are making windfall profits. Somehow these energy market experts have convinced themselves that if this monstrosity ever gets enacted and withstands the inevitable lawsuits that the fossil fuel producers won’t simply pass the costs on to consumers. They say they are going to prevent that, but aside from yet another magical solution, I cannot imagine how that could ever work in favor of the consumer. At the same time these same politicians have enacted a holiday on fuel taxes because costs are too high.
The opinions expressed in this post do not reflect the position of any of my previous employers or any other company I have been associated with, these comments are mine alone.