Good morning and welcome to the Monday edition of the New York & New Jersey Energy newsletter. We’ll take a look at the week ahead and look back on what you may have missed last week.

STATE BUILDING DECARBONIZATION PUSH — POLITICO’s Marie J. French: An alliance of unions and environmental groups has returned after scoring a victory last year with a new target: shovel-ready plans to decarbonize the biggest state-owned energy gobblers.

The coalition has already made major progress by getting both the Assembly and Senate to include their proposal to require decarbonization of state-owned buildings in their one-house budget plans. That includes mandating the completion of shovel-ready plans to eliminate on-site fossil fuel use at the 15 biggest polluters by April 2025, with a focus on large-scale geothermal and other thermal energy networks.

Union leaders backing the plan say it will ensure there’s a steady flow of work to enable hiring more people from low-income and minority communities, particularly those most impacted by pollution and climate change. It will also ensure workers who today work in the fossil fuel industry — including installing and maintaining new gas pipelines and equipment — see a path forward as the state moves toward its climate goals, they say.

“Thermal energy networks provide that transition for the very workers that install fossil fuel systems and appliances today,” said John Murphy, international representative for the United Association of Journeyman and Apprentices of the Plumbing and Pipe Fitting Industry. “While there’s never a perfect transition, this is as close as it gets to a promising transition for so many workers in that industry.”

The UpgradeNY campaign has the backing of the AFL-CIO and the New York State Building and Construction Trades Council. Environmental groups including the New York League of Conservation Voters and Building Decarbonization Coalition are also involved.

RELIABILITY STICKING POINT FOR GAS BUILDING BAN: Concerns raised by longtime opponents of a proposal to require new buildings to move away from fossil fuels are emerging as a major sticking point for getting the policy in the state budget. One of New York’s largest utilities is backing a mandate to electrify new buildings as part of the state budget — as long as it includes provisions considering the capacity of the electric system.

National Grid, which opposed the proposal to require all new buildings to electrify last year, has shifted gears in its advocacy as Democratic lawmakers have made clear they support beginning the state’s transition off fossil fuels. “National Grid recognizes the importance of electrification of new buildings,” said Huck Montgomery, director of policy and strategy at the gas and electric utility that supplies gas to Long Island and portions of New York City and electricity to 1.6 million upstate customers. “The evidence really does show that electrification of new buildings is an optimal way to achieve the transition … and the scoping plan was very clear that this is the preferred strategy.”

Montgomery said the utility wants to see the final deal include something similar to the Assembly’s version of the new construction provision. The Assembly measure would require the state Department of Public Service to make a determination for specific regions and projects as to whether there’s enough electric capacity available before the mandate for new construction could move forward. That information would then be shared with municipalities to make determinations about siting new buildings, but it’s not clear what local governments could do in the face of a statewide building code.

“It’s really framing our concerns and our priorities in terms of recognizing the diversity of the state and that what works in one part of the state is not necessarily going to work the same way in another part of the state,” said Assemblymember Didi Barrett (D-Columbia County), who chairs the Energy Committee. “How it actually plays out in terms of what municipalities can do is still to come.”

State law already requires the utility regulator to ensure safe and reliable service, with electric utilities required to provide service to new customers in their territory if it is requested. Supporters of the bill are concerned about the Assembly provision, although it’s not clear what effect it would have.

Michael Hernandez, the New York policy director with Rewiring America, called it a “poison pill.” He said it potentially imposes an additional unnecessary hurdle before the requirements can go into effect. “All new buildings currently constructed are already being hooked up to the electrical grid without the need for DPS, [the state’s independent grid operator] and local governments to determine load capacity for each permit,” he said. “The status quo should not change simply because the building will not have fossil fuel combustion systems installed in them.” — Marie J. French

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Here’s what we’re watching in the week ahead:

MONDAY

— Faith leaders and environmental groups including NY Renews and NYPIRG, join Sen. Pete Harckham to push for provisions in the Senate one-house budget proposal, noon, Million Dollar Staircase, Albany.

TUESDAY

— NY Renews holds an advocacy day and rally in Albany as the clock ticks down for the state budget.

— New York’s siting board holds a meeting about an amendment for the Flint Mine Solar project, 10:30 a.m.

— The New York Senate Energy Committee meets and hears from Houtan Moaveni, executive director of the New York State Office of Renewable Energy Siting, 11 a.m., Room 124 in the Capitol, Albany.

WEDNESDAY

— The Department of Public Service hosts virtual public statement hearings on the Con Edison rate hike joint proposal, 1 p.m. and 6 p.m.

THURSDAY

— The Department of Public Service hosts the second day of virtual public statement hearings on the Con Edison rate hike joint proposal, 1 p.m. and 6 p.m.

FRIDAY

— Budget deadline: New York’s fiscal year ends. Deal or no deal? Some big climate policies hang in the balance.

— Canada has increased its commitment to the Great Lakes, but concern remains.

— Rochester group pushes public takeover of RG&E, presses for implementation study funding from local governments.

— The impending closure of the ReEnergy wood burning plant that supplies Fort Drum is alarming local businesses that support its operation.

— The Times Union highlights plans to restore channels alongside the Hudson River at Schodack Island.

— New Jersey is suing Dow Chemical and others over 1,4-dioxane pollution.

— The construction industry is attacking a green alternative proposal for the NJ Transit plant.

— A member of Congress wants to make sure new EVs have AM radio.

DEP CANCELS LIBERTY PARK PLAN UNVEILING — The New Jersey Department of Environmental Protection task force was prepared to publicly reject major commercial development in Liberty State Park and present its alternate plans to the public Thursday night. But amid criticism from a group tied to the billionaire owner of a nearby golf course, the DEP canceled its meeting, giving a nonsensical reason that the public unveiling of its plans might draw “significant public interest.”

Anjuli Ramos-Busot, the director of the state chapter of the Sierra Club, said that reason didn’t hold up. “When you have a lot of public participation, what you don’t do is cancel an event to reschedule,” she said. “What you do is add events to accommodate everybody’s interest.” She said Gov. Phil Murphy should make sure DEP presents its plans.

The plans DEP was set to unveil come months after billionaire Paul Fireman’s golf course lobbied for a law to encourage new development at Liberty State Park in Jersey City. Fireman once sought to redevelop part of New Jersey’s most visited park to expand the course at his Liberty National Golf Club.

A group that has received money from Fireman, Liberty State Park for All, wrote a letter to DEP criticizing the plans the agency was set to unveil with detailed renderings that would have allowed people to visualize the park without major commercial development. That letter criticized DEP for rejecting major new development in the park. The task force’s report, obtained by POLITICO, says such ideas were “discussed” but not endorsed by the task force.

The effect of canceling this week’s event means that renderings by another Fireman-backed group, the People’s Park Foundation, are the ones that most people following the issue have seen, potentially skewing the debate between what’s there now — swaths of neglected park land — with a Fireman-backed vision for the future that includes a waterfront amphitheater and a quarter-million-square-foot recreation center with an NHL-sized hockey rink.

“Billionaires have thin skin, DEP’s proposal of recreation and natural restoration doesn’t square with the stadium and Fireman is obviously pushing for massive commercialization,” said Doug O’Malley, the head of Environment New Jersey, one of the group’s fighting Fireman. An attorney for Liberty State Park for All did not respond to a voicemail seeking comment. A PR firm that has done work for People’s Park Foundation also did not respond to a request for comment. — Ry Rivard

NYPA RENEWABLES PUSH: Advocates for a measure to reshape the New York Power Authority joined lawmakers in the War Room in the Capitol on Thursday to press for inclusion of their version of the proposal in the final budget deal.

Supporters of the Build Public Renewables Act are pushing to include labor standards, an accelerated timeline to close down NYPA’s fossil units, mandates for NYPA to develop new projects if the state is falling short of its 70 percent renewable by 2030 target and changes to its governance structure, among other priorities.

“We are very close to getting this done in the budget,” said Assemblymember Bobby Carroll (D-Brooklyn), who sponsors the bill. “Four years ago I don’t think people thought we could revolutionize NYPA — and we’re on that precipice.” Assembly leadership last year did not bring the measure to a vote as some key committee chairs expressed concerns about the proposal. NYPA leadership also opposed the bill but has backed Gov. Kathy Hochul’s narrower, less aggressive version.

The Senate passed the measure for the second year in a row early this session. The Assembly did not include the bill in its one-house budget proposal but rather made a statement of general support for the idea, with backing for the labor standards and mandate to build that was missing from Hochul’s pitch.

Supporters of the bill are not satisfied with the Assembly position that leaves out a 2030 date for NYPA to shut its fossil fuel plants. The authority has set a goal for 2035, which Hochul’s vision would codify. “It’s a slap in the face to environmental justice communities,” said Patrick Robbins, a coordinator with the New York Energy Democracy Alliance. “We don’t see why they should have to live with [the pollution] for longer.” They’re also concerned that without changes to expand NYPA’s board and reduce the governor’s influence any final deal would be ineffective. — Marie J. French

NEW BUILDING GAS BAN MOMENTUM BUILDS — POLITICO’s Marie J. French: A major first step to tackle the largest source of planet-warming emissions in New York appears within reach as the clock ticks down on the state’s budget process. The governor and Democratic lawmakers have all backed versions of a first-in-the-nation measure to phase out fossil fuel combustion equipment — furnaces, water heaters, clothes dryers and stoves — in most new buildings. New York would be the first to take this step through legislative action. A deal has not been finalized to ensure passage, but advocates are cautiously optimistic it will get included in the final three-way agreement.

“We are a national leader on this. All eyes are on us and a lot of other states … are looking to what New York does,” said Pat McClellan, policy director at the New York League of Conservation Voters. “If we prove it can be done and we have the political will to do this, it’s going to open the floodgates for other states to take action.” New York’s landmark climate law mandates a steep reduction in emissions in the coming years, with a target of net-zero by 2050. Electrifying new and existing buildings is a key policy endorsed by the state’s Climate Action Council set up to plan for the transition.

The proposals face opposition from fossil fuel companies, business groups and homebuilders. Some upstate Democratic lawmakers have concerns about the plan and are sensitive to questions from their constituents about the perceived cost and reliability of electric heating options. “I would prefer that we incentivize electric buildings, either through tax credits or other proposals, rather than forcing it as an issue because there’s a lot of concern and angst in particular in western New York,” said Assemblymember Monica Wallace (D-Lancaster). “We shouldn’t necessarily ban people from pursuing other options if that’s what they want.”

LEGISLATIVE LEADERS PRESSURE MURPHY ON POWER PLANT — In a new plea aimed at New Jersey Gov. Phil Murphy, the Senate Majority Leader and chair of the Assembly Budget Committee are urging the state to scale back plans for a gas-fired power plant in Newark. The letter — signed by all members of legislative District 29, including Sen. Teresa Ruiz (D-Essex) and Assemblymember Eliana Pintor Marin (D-Essex) — is the latest from powerful North Jersey politicians who oppose the Passaic Valley Sewerage Commission’s plans to build a $180 million backup power plant in the city. Newark Mayor Ras Baraka has also come out against the project, which critics say would be another polluting project in a city already burdened by polluting industries.

The lawmakers also singled out an under-the-radar engineering issue that the sewer agency, which is a state agency, does not appear to have seriously dealt with: Whether upgrades by PSE&G have negated the original justification for the power plant, which is being built because of a lengthy outages from Hurricane Sandy. By all accounts, PSE&G’s system is far more reliable now — it has spent hundreds of millions of dollars in the area to ensure redundancy and reliability — and it didn’t suffer major outages when the remnants of Hurricane Ida passed through the state in 2021. “Shouldn’t we be looking at what improvements have been made and what if anything needs to be added to this?” Ruiz said in an interview. The sewer agency has also not looked at coordinating its efforts with another state agency, New Jersey Transit, which is planning to build its own power plant — which is likely to burn gas — just a few miles away. — Ry Rivard

BUILDINGS AWARDS: NYSERDA doled out more money to new multifamily buildings making strides in low-carbon technology. The authority awarded $13.5 million to 14 demonstration projects across the state as part of the third round of the “Buildings of Excellence Competition.” Winning developers agree to provide cost and design data so that NYSERDA can analyze and distribute it to help promote more new multifamily buildings to reduce emissions. Fifty six percent of the units to be constructed are for low- and moderate-income residents. The program is funded by utility ratepayers as part of the Clean Energy Fund. — Marie J. French

BPU REMAKE HICCUP — POLITICO’s Ry Rivard: Republicans on Monday held up Gov. Phil Murphy’s two nominations to the state Board of Public Utilities because of concerns that both nominees would rapidly move to ban the use of natural gas in the state.

The nominees are longtime Murphy administration official Christine Guhl Sadovy and Marian Abdou, an attorney for the energy company NRG. Both cleared the Senate Judiciary Committee on Monday but didn’t have enough support from Republicans to get a same-day floor vote.

Some of the harshest questions during a confirmation hearing were for Abdou, a Republican. Abdou, a Basking Ridge resident, has the support of her home district senator, Jon Bramnick (R-Union), who called her the “least political person I’ve ever met” based on a recent meeting. “You knew nothing about the politics, nothing about the process — actually nothing about the whales, nothing about the windmills and nothing about electrifying the entire state of New Jersey,” Bramnick said. “So I felt that was a good start.” But other Republicans were concerned about the political cipher, who few people in Trenton seem to know. Abdou has little record of political involvement or donations to political causes or candidates. Anthony Bucco (R-Morris) said he had “major” and “severe” concerns about Abdou’s unknown positions on issues, like whether the state can and should stop burning natural gas in coming decades.