HOTTER, SOONER — POLITICO’s Marie J. French: New York’s largest utility has revised its forecast of climate change impacts on its electric system — forecasting a quicker increase in extreme temperatures and heavy rainfall events. Con Edison will submit its latest climate change vulnerability study to the Public Service Commission on Friday, updating results from a 2019 report with a grim recognition that the impacts of burning fossil fuels are being felt more acutely and quickly than previously expected. High temperature days exceeding 95 degrees are expected to occur in 2030 at a frequency of 17 days annually — an estimate previously not expected until 2040, according to the study. “That's the most stark new finding,†Con Ed president and CEO Tim Cawley said in an interview. “I think it points to the fact that we need to stay at this in terms of mitigating and studying.†Precipitation projections also increased, elevating the likelihood of deluges that could overwhelm New York City’s stormwater system. Sea level rise predictions did not change. The projections and data were provided by NYSERDA in partnership with Columbia University and the study was performed by Con Edison with support from ICF, a consulting firm. The research was provided to POLITICO ahead of the filing Friday. HEAT PUMP REUP: Gov. Kathy Hochul joined Maine Gov. Janet Mills and Washington Gov. Jay Inslee to announce a U.S. Climate Alliance commitment to heat pumps, but there wasn’t much new on that front for New York watchers. Hochul highlighted the $200 million in this year’s state budget for the EmPower+ program, which NYSERDA is administering. It provides up to $10,000 for some energy efficiency projects and, if a home meets certain standards, heat pumps. “They can add insulation, energy efficient appliances, clean energy, and how about heat pumps? That's what we're going for. It's all about the heat pumps today, right?†Hochul said. New York’s building codes council is also crafting regulations to ban fossil fuels in most new buildings beginning in 2026. More interestingly, New York also committed to “exploring†two potentially controversial proposals. One is a “clean heat standard,†which would require suppliers of heating services including gas utilities to buy or earn credits tied to lower-carbon heating options. Similar in concept to a low-carbon fuel standard for transportation, that could incentivize electrification and district heating but, depending on the design, could also support renewable natural gas and green hydrogen for heating. That would face staunch opposition from environmental justice advocates and some other environmental groups. “The state needs to prioritize electrification. That means heat pumps, that means district thermal, first and foremost,†said Earthjustice New York policy director Liz Moran. “We cannot be incentivizing false solutions like RNG and hydrogen.†National Fuel Gas, a gas-only utility that has opposed electrification-only policies for buildings, has pushed for a clean heat standard. The other is one included in the state’s climate plan and backed by Hochul last year: zero-emissions standards for building heating and hot water equipment. That would amount to a ban on the sale of new fossil fuel furnaces or water heaters. Hochul proposed a similar measure in her budget but got shot down by lawmakers. Based on the broad authority in the state’s climate law, the Department of Environmental Conservation could enact such appliance standards since they’re included in the state’s climate plan. A spokesperson for the governor did not respond to questions about the next steps in “exploring†either policy but said details would be released later. — Marie J. French NYC COUNCIL MEMBERS BACK NY HEAT: Eleven New York City Council members signed a letter pushing Gov. Kathy Hochul to include a measure to cap utility bills for low-income residents and stop subsidizing new gas hookups in her 2024 budget proposal. “New York cannot lead the nation on climate and energy policy if we continue forcing New Yorkers to pour money into the fracked gas system that’s killing them,†the letter says. NY HEAT was a major priority for some environmental groups last session and had support from Senate Democrats. Hochul has not backed the measure and top Assembly lawmakers have also expressed concern about the proposal’s costs to other ratepayers and impact to gas customers. Advocacy groups are stepping up efforts to push Hochul to back their priorities in the upcoming budget season. — Marie J. French — About that budget… “ The state Budget Division is ordering state agencies to freeze spending in most cases for the coming fiscal year amid ballooning budget deficits,†Joe Spector reports. TIME FOR SOME LAWSUIT PROBLEMS — POLITICO’s Ry Rivard: Two months after New Jersey sued to block New York from tolling drivers coming into parts of Manhattan, very little has happened in the case. But now, attorneys for Gov. Phil Murphy’s administration worry it's moving so slowly that New York’s final congestion pricing plans will be decided or even in place before New Jersey gets its day in court. The federal government also wants to exchange legal briefings with New Jersey until next March, just before tolls are supposed to be in place in May. Randy Mastro, the well-connected attorney who is representing the state, decried that timeline in a recent legal filing, arguing March is “the eve of the project’s anticipated start date†next spring, when tolling is expected to begin in May or so. “This once again appears to be a delay tactic meant to make congestion pricing a fait accompli,†Mastro wrote in a Sept. 15 filing. The federal government denies it is dragging its feet and argues it needs the time and that New Jersey’s desire to move quickly is “unrealistic and inefficient.†SUPERFUND, SUPER DELAY — There are more delays to a $150 million deal proposed last year to settle the federal government’s claims against 85 companies accused of contaminating the Lower Passaic River. On Wednesday, a federal magistrate scheduled an Oct. 16 hearing to handle the federal government’s request to delay revealing whether it wants to finalize the proposed settlement, something that was supposed to happen later this week. The delays are just the latest in the long-running fight over who pays for the cleanup. A report found the bulk of the cleanup costs should be borne by Occidental Chemical Corp. The company, known as OxyChem, is fighting the settlement, of which it is not part. The Passaic River has been on the federal list of toxic Superfund sites since the mid-1980s, and continued conflict may mean no end to the cleanup is in sight. — Ry Rivard HOCHUL BOOSTS CHPE: Gov. Kathy Hochul celebrated a major transmission project to bring clean energy in New York City — but she hasn’t taken a stance on the developer’s push for more ratepayer subsidies. Hochul attended the ceremonial construction kickoff for the Champlain Hudson Power Express’ converter station in Astoria, alongside her top climate officials, the Quebe Premier and project officials. This is the second time Hochul has attended a construction event for the 339-mile transmission line, which is scheduled to enter commercial operation in May 2026. “This means that we are on the cusp of a transformation,†Hochul said, after popping on a hat emblazoned with “CHPE,†the nickname for the project. “That is one now not of thinking about the future and planning how we need to transition, but it's saying that the future has arrived. “ Any higher price for the clean energy benefits of the project will have an impact on New York City, as well. The city agreed to purchase credits from this project and another transmission line, also seeking increased payments, to cover the electricity use of its buildings. New York City hasn’t weighed in formally on the Champlain Hudson request, which was submitted after the other asks. Department of Environmental Protection Commissioner Rohit T. Aggarwala said the company’s claims should be scrutinized. “I think the Public Service Commission has to balance the fact that we need that clean power — the Champlain Hudson Express, the [other transmission line] Clean Path, the offshore wind — we need all of it,†he said. “I’m sure that some of the concerns are real, but you’re right, CHPE is under construction. So this isn’t something about ‘Oh, if they get more money, we should get more money to have larger profit margins.’ It should be only if your costs actually increased, should the PSC consider that.†Hochul did not take questions at the Champlain Hudson event, and a spokesperson declined to comment on the subsidy request. Champlain Hudson announced the first awards from its $40 million Green Economy Fund, with a total of $750,000 to four programs: Pathways to Apprenticeship, Stacks + Joules, Nontraditional Employment for Women, and the NYC District Council of Carpenters Apprenticeship Journeyman Retraining Educational & Industry Fund (AJREIF). Karp Strategies is administering the fund and another round of submissions for programs outside New York City will be sought in early 2024. — Marie J. French and Jason Beeferman LT GOV DROPS BY BPU — New Jersey Lt. Gov. Tahesha Way on Monday dropped by the first Board of Public Utilities meeting since the death of President Joe Fiordaliso. Way offered memories of Fiordaliso, as did the remaining four board members, including new President Christine Guhl-Sadovy. Board member Zenon Christodoulou vowed to continue Fiordaliso’s fight for clean energy policies by thinking about “what Joe would do.†Bulk denials of solar companies: The BPU also rejected requests by over a dozen solar developers for extensions that would allow them to receive subsidizes from the transitional solar incentive program. Board member Christodoulou said the board and its staff had been as accommodating as possible. For months, the board has been bedeviled by requests for extensions from solar developers seeking extensions to qualify for subsidies, at time admonishing them while also giving them leeway. — Ry Rivard BRIDGE OVER TROUBLED TRACKS — When Phil Murphy was campaigning for governor, he heard from Newark officials about hopes to build a pedestrian bridge in Newark to reconnect parts of the city divided by tracks and roadways. On Tuesday, the governor announced officials were a step closer to building the bridge, which would connect two parks — Peter Francisco and Mulberry Commons — and a new train hall at Newark Penn Station. Newark Mayor Ras Baraka said the bridge, which would cross over numerous train tracks and McCarter Highway, would change the “center of gravity†in the city and help fill social, political and economic gaps created by the roads and tracks. Some money for the bridge would come thanks to in part of a pair of laws, S3507 from 2019 and S3656 from 2022, that allow the city to add surcharges to parking lots. Sen. Teresa Ruiz, an Essex County Democrat who sponsored both bills, said the bills would provide millions of dollars to help build the bridge. While officials did a ceremonial groundbreaking Tuesday, construction has yet to begin and, when it does, the bridge is expected to take a year and a half or two years. Murphy said the project would be as transformative as Boston’s Big Dig, which helped reconnect parts of the city separated by roads, but without that project’s infamous costs and delays. — Ry Rivard | 
