EDWARDS PULLS IN OUTSIDE INCOME — POLITICO’s Marie J. French: A member of New York’s utility regulator is working for a business group whose membership includes utilities, offshore wind developers, solar companies and others with dealings before the commission. Tracey Edwards, a member of the Public Service Commission and a Democrat who was nominated to the post by then-Gov. Andrew Cuomo in 2019, reported the relationship as a consultant for the Long Island Association in her 2022 financial disclosure form as part of her outside consulting firm work. She’s the only commissioner to report any significant private income, according to POLITICO’s review of all seven commissioners’ 2022 filings. And she recently recused herself on several votes without any explanation. Commissioners do not always disclose a reason for recusing themselves. The Long Island Association’s board includes executives from National Grid; PSEG Long Island; Equinor, Eversource Energy and Orsted, who are offshore wind developers seeking increased subsidies from the PSC. Other board members include Covanta; AT&T; EmPower Solar; AFL-CIO and large energy users, including Brookhaven National Laboratory, hospitals and universities. The Public Service Commission exercises vast authority over the state’s electric, gas, water and telecommunications companies. “It creates enormous potential conflicts of interest,†New York Public Interest Research Group executive director Blair Horner said. Stacey Sikes, a spokesperson for the Long Island Association, clarified that Edwards' firm, Strategic Pathways, was retained through a grant received by the LIA Foundation, which has a separate board from the association itself, to develop an inclusive economic growth plan for Long Island, in partnership with the Long Island African American Chamber of Commerce and Long Island Hispanic Chamber of Commerce. Edwards reported between $150,000 and $250,000 in income from Strategic Pathways, and between $100,000 to $150,000 from TAE Inc. Her salary as a commissioner, which statutorily is a full-time position, is $170,000. NY, NJ AND OTHERS WANT BIDEN TO HELP OFFSHORE WIND — Democratic governors in six Northeastern states, including New York and New Jersey, are begging President Joe Biden to help save the American offshore wind industry. Biden, as well as the governors, have pinned many of their clean energy and climate change hopes on offshore wind. But the industry is struggling to finance projects, citing what industry boosters say are unforeseeable economic factors, like inflation and supply chain issues. For months, energy companies have gone hat in hand to governors and utility regulators asking for more money so they can start building the turbines they have already promised to deliver. Now, the governors are taking the hat to the president, who is counting on offshore wind farms to produce at least enough power for 10 million American homes by the end of the decade. “Absent intervention, these near-term projects are increasingly at risk of failing,†the governors wrote Biden in a letter dated Wednesday but released Thursday. The governors — New York Gov. Kathy Hochul, New Jersey Gov. Phil Murphy, Massachusetts Gov. Maura Healey, Maryland Gov. Wes Moore, Connecticut Gov. Ned Lamont and Rhode Island Gov. Dan McKee — asked Biden and other top administration officials for three things: They want the Biden administration to make it easier for companies to get tax incentives available under the Inflation Reduction Act, which can help offset 40 percent of a wind project’s capital costs. Orsted, perhaps the biggest company in the wind energy world, has said it’s counting on getting 40 percent for several of its projects, including what would be New Jersey’s first offshore wind farm. But, so far, the guidance it’s getting from IRS and Treasury officials would make available 30 percent incentives. As a result, Orsted is delaying or threatening to delay projects. The governors want Biden to speed up permitting. There have long been worries that the Bureau of Ocean Energy Management and other federal agencies don’t have the staff to quickly process multiple major projects at once. “Slow permitting timelines have the potential to severely limit our ability to grow the clean energy economy at the pace necessary to meet the decarbonization goals science requires,†the governors wrote.†There have also been local obstacles to permitting, including legal wrangling over transmission lines in states, including New Jersey. The governors also want to change how much lease revenue the federal government gets from wind developers. Current federal law requires that all revenue generated from offshore wind leases beyond state waters be returned to the federal government. “The lease revenue is a cost to offshore wind developers, meaning that states’ electricity ratepayers will bear the cost of leases for projects that ultimately interconnect into states’ electric grids,†the governors wrote. “A portion of these revenues should be re-distributed back to the proximate States that bear these costs as proposed by the bipartisan Reinvesting in Shoreline Economies and Ecosystems (RISEE) Act.†— Ry Rivard UTILITY THERMAL NETWORKS STILL PENDING — POLITICO’s Marie J. French: The Public Service Commission did not approve any utility thermal network pilots Thursday, but it laid out a process to move proposals forward while scrutinizing costs and other issues. Thermal energy networks can connect multiple buildings, such as on a college campus, with pipes and pumps that utilize energy from wastewater, geothermal boreholes, lakes and other sources to provide heating and cooling services. Environmental groups and labor unions pushed for the legislation driving the commission’s action. The law envisioned faster action by the commission to move pilots forward, but the PSC has made clear it won’t act without a thorough review of proposals given the potential costs to ratepayers — a growing concern. — Also at the meeting: The commission also approved a draft environmental impact statement for a proposed increase to the state’s energy storage subsidies. The environmental review is now available for public comment. Two commissioners, Diane Burman and John Howard, voted against the order issuing the draft environmental document. Burman said some issues were not fully addressed. Howard specifically raised concerns about a lack of consideration or analysis for the impacts of lithium extraction in other countries, fire risks of battery storage facilities and end-of-life issues with opposition to battery recycling facilities in New York. BUS HEADACHES — POLITICO’s Ry Rivard: New Jersey transportation officials are being handed another headache — private bus companies are cutting routes and leaving commuters stranded unless the state steps in. Since spring, three bus operators have announced they are pulling back routes, mostly in North Jersey, raising alarm bells for Gov. Phil Murphy, the mayors of the state’s two largest cities and Rep. Mikie Sherrill (D-N.J.), among other elected officials. Now, NJ Transit may have to fill the gap, even as the agency is stretched thin and heading toward a fiscal cliff. “We take it very seriously,†Murphy said during a radio interview this week. “We do not want transit deserts.†FIORDALISO REMEMBERED — At a packed memorial service in Trenton’s War Memorial on Wednesday, Gov. Phil Murphy, top BPU officials and family remembered Joe Fiordaliso, the New Jersey Board of Public Utilities president who died last week. “During his nearly two decades with the BPU, he literally pioneered our state's transition to a clean energy economy,†Murphy said. Like every other speaker at the service — including one of Fiordaliso’s six grandchildren, his son and his newly-named successor as BPU president, Christine Guhl-Sadovy — the governor wore a “wind pin,†a lapel pin depicting a wind turbine, of the kind Fiordaliso often wore. Guhl-Sadovy, who Murphy picked as BPU president this week, remembered her time as the agency’s chief of staff under Fiordaliso in personal and professional terms. “Joe was like my work dad – he was everyone’s work dad,†she said. Staffers recalled that he called or sent emails to every one of them on their birthdays. Sometimes, when people didn’t want to get their ideas shot down by Guhl-Sadovy,, they would arrive early — Fiordaliso was known to be in his Trenton office by 7 a.m. despite commuting from Livingston, N.J. — to try to get past her. His son, Joseph A. Fiordaliso, a former transportation official and head of a government affairs firm, alluded to how his father worked to the end, despite health issues, including getting COVID last fall. Comparing his father to Thurman Munson — a catcher on his father’s favorite team, the Yankees, in the 1960s and 1970s — the son said, “Like dad, he played hurt, but he never complained.†Fiordaliso, who was known for his sense of humor, got a postmortem ribbing from Murphy, a Red Sox fan, who joked that as crushed as everyone was by his death, Fiordaliso still “had a better year than his Yankees.†— Ry Rivard  GORDON JOINS LOBBYING FIRM — Bob Gordon, the former New Jersey state senator and Board of Public Utilities commissioner and current NJ Transit board member, is now a lobbyist. Gordon recently joined Stevens & Lee Public Affairs — joining a team led by Skip Cimino, former executive director of the Assembly Majority Office. The firm is one of several different firms that are part of The Stevens & Lee Companies. “He will be a huge asset to the firm as we help our clients address issues at the intersection of government and business,†Cimino said in a statement. Gordon said he’s sought to shape public policy in New Jersey and the institutions that affect the quality of life in our state throughout his career. The firm, he said, “offers an opportunity to continue my work on clean energy initiatives, public infrastructure, transportation policy and other areas of interest, while serving our clients and building a first-class public affairs firm.†The firm represents the state chapter of Associated Builders and Contractors, NextEra Energy Resources, South Jersey Industries, among others, according to the state Election Law Enforcement Commission. — Ry Rivard EJ POLICIES BACKED WITH AIR QUALITY RESEARCH — POLITICO’s Marie J. French: A new analysis shows better air quality improvements for communities historically overburdened with pollution under a suite of policies supported by environmental justice groups compared to one aligned with the state’s likely policy plan. The new in-depth analysis released Wednesday was done by Resources for the Future, a nonprofit research group, and the New York City Environmental Justice Alliance. NYC-EJA has been advocating for climate action that center communities of color and low-income neighborhoods for decades. Environmental justice advocates hope the comparison strengthens the case for state policymakers to implement the more aggressive proposals. “When we chose more ambitious policies, we tended to see greater decreases in emissions,†said Victoria Sanders, a research analyst for NYC-EJA and one of the authors of the paper. “If we continue with bold action, we should anticipate greater improvements.†The state’s ambitious climate law requires a 40 percent reduction in greenhouse gas emissions by 2030 from 1990 levels and an 85 percent reduction by 2050. Policymakers are still grappling with how to achieve that and how to pay for programs to get there. The law also explicitly calls for at least 35 percent of clean energy funds to benefit disadvantaged communities — those most vulnerable to the effects of climate change and historically overburdened with pollution — and for policies to prioritize reductions of health-harming co-pollutants in those communities. The modeling also shows increases in pollution in some disadvantaged communities under the state policy pathway, a major concern for environmental justice groups. “GETTING 97 DONE†— POLITICO’s Janaki Chanda: The Adams administration rolled out long-awaited details Tuesday on how it will enforce a landmark 2019 law to cut building emissions — while allowing flexibility to owners who are out of compliance when caps go into effect next year. The plan is branded “Getting 97 Done.†SENATE REPUBLICANS ATTACK WIND, BPU PRESIDENT — New Jersey Senate Republicans continued attacking Senate Democrats and Gov. Phil Murphy administration on clean energy policy, calling as a caucus on Democrats to return to Trenton to hold an emergency vote “to ensure that no more subsidies†go to offshore wind developers. There is no chance such a thing would happen, but the Republicans are clearly hoping to make hay of public opposition to offshore wind with legislative elections weeks away. The former head of the Republican caucus, Steve Oroho (R-Sussex), was key to advancing a previous subsidy bill for Orsted, the company expected to build the state’s offshore wind farm. (Oroho helped the bill get out of the committee, though he voted against it on the floor.) But even with those state subsidies, the company has pushed back the date it expects to have the project up and running and is pushing the federal government to award it tax incentives before the company will make a final decision to proceed with the project, known as Ocean Wind 1. Republicans also attacked Murphy’s pick to lead the Board of Public Utilities, Christine Guhl-Sadovy, a current board member who as an administration staffer helped develop the governor’s clean energy master plan. “Governor Murphy will go to great extremes to implement his costly and overly aggressive energy disaster plan. Even if it means moving further and further to the left with a hand-picked activist to run the BPU,†Sen. Michael Testa (R-Cumberland) said in a statement. Republicans unsuccessfully tried to block her appointment to the board earlier this year. Murphy can name her its president — to replace Joe Fiordaliso, who died last week — without Senate approval. A Murphy spokesperson did not respond to a request for comment. — Ry Rivard FORMER BPU STAFFER TO LEAD BOARD — Christine Guhl-Sadovy, one of the newest members of the New Jersey Board of Public Utilities but a veteran staffer of the agency, will become the board’s president following the death last week of Joe Fiordaliso. Guhl-Sadovy was confirmed to the board in May despite Republican opposition, which stemmed from her work as one of the agency’s top staffers who worked on Gov. Phil Murphy’s clean energy master plan. She is someone who knows her way around the agency as the former chief of staff under Fiordaliso. Fourteen state Senate Republicans voted against her selection. Murphy named her the board’s president on Monday, a posting that does not need Senate approval. “I am deeply saddened by the passing of my dear friend Joe Fiordaliso, but will do everything I can to honor his legacy as BPU president,†Guhl-Sadovy said in a statement. “Thank you to Gov. Murphy for entrusting me with this responsibility. I look forward to continuing to serve the people of New Jersey in this role, and making the planet healthier for my son, Joe’s grandchildren, and all NewJerseyans.†Fiordaliso often cited his grandchildren when he pushed for clean energy and climate change-related policies. Fiordaliso’s son, Joseph A. Fiordaliso, commended Murphy’s selection of Guhl-Sadovy in a statement released by Murphy’s office. Guhl-Sadovy replaced former state Sen. Bob Gordon on the board earlier this year. Her nomination was paired with Republican Marian Abdo, an attorney for the energy company NRG who has since had to recuse herself from votes because of that former work. The BPU is a five-person board of full-time members that must have no more than three members of one political party and whose members make $175,000 a year, as much as the governor. The board currently has four members, two Republicans and two Democrats. The New Jersey Globe, citing unnamed sources, said an aide to the governor may be nominated to the board following this fall’s election. — Ry Rivard GATEWAY UNDERWAY — The bi-state Gateway Development Commission awarded two contracts Monday needed to build a newtrain tunnel across the Hudson River, part of the regional Gateway Project to improve passenger rail in the Northeast. The contracts are for a new overpass in North Bergen, N.J., to carry Tonnelle Avenue over the future railroad right-of-way for the train tunnel. Naik Consulting Group, P.C. will provide expert professional construction management and related technical services, while Conti Civil, LLC will be responsible for construction of the project, known as the Tonnelle Avenue Bridge and Utility Relocation Project. Each bit of progress locks in the tunnel project, proofing it against an election that could put project foes Donald Trump or Chris Christie in the White House. — Ry Rivard BOEM ADVANCES EMPIRE WIND: The Bureau of Ocean Energy Management on Monday finalized its environmental review for the Empire Wind project off the New York coast. The final EIS sets up a final decision this fall for what could be the fifth utility-scale offshore wind project approved by the Biden administration. — James Bikales |