In the News-New York State
New York Rejects Offshore Wind, Onshore Renewables Request for Contract Rate Adjustments
The New York State Public Service Commission (Commission) yesterday denied petitions filed by a group of offshore wind developers and a state renewable energy trade association seeking $12 billion in additional funding for four proposed offshore wind projects and 86 land-based renewable projects.
In its unanimous decision, the Commission opted to preserve the State’s competitive bidding process, denying the developers’ requests for post-contract adjustment relief to offset increased costs.
“The requested amendments to the contracts would have provided adjustments outside of the competitive procurement process; such relief is fundamentally inconsistent with long-standing Commission policy,” said Commission Chair Rory M. Christian. “The Commission has repeatedly stated that competition in the procurement process is necessary to protect ratepayers and provides the soundest approach to mobilize the industry to achieve our critical State goals dependably and cost-effectively, and we do so again through today’s action.”
In response to the denial, New York’s labor, business, and environmental organizations united to “express dismay” and request that the administration act quickly to minimize the damage and find other ways to facilitate vital wind, offshore wind, and solar energy projects throughout the state, particularly ones that will support a union workforce, pay prevailing wages, and utilize project labor agreements.
“Today’s decision by the Public Service Commission breaks the trust that we have been building with our members and the developers that invested time and resources in New York’s clean energy economy. This is not just disappointing; it is a devastating blow to the future clean energy economy in New York. We hope to get some clarity on a potential expedited rebidding process in the coming days so that we can still salvage as many of these projects as possible.” said Vincent Albanese, Director of Policy and Public Affairs at the New York State Laborers’ Organizing Fund, in the New York League of Conservation Voters’ statement.
The denied petitions were submitted by Empire Offshore Wind LLC and Beacon Wind LLC, Sunrise Wind LLC, and the Alliance for Clean Energy New York, Inc. (ACENY). The petitions were seeking adjustment to Renewable Energy Credit (REC) and Offshore Wind REC (OREC) purchase and sales agreements entered with NYSERDA to address recent inflationary pressures that are impacting project economics.
The projects seeking higher payments represent 25 percent of the forecast electricity demand in 2030. DPS staff estimated that consumer bill increases would be as high as 6.7 percent for residential customers and as high as 10.5 percent for commercial or industrial customers, depending on the utility. The original contracts totaled $10 billion.
PSC Chair Christian asserted that the State would continue to move forward with investments in clean energy. In addition, he explained that the State is not canceling the contracts and it is the decision of the developers to cancel their contracts.
“These projects are not everything. They do not represent the entirety of our efforts to fight climate change,” Chair Christian said. “They’re one part of our portfolio, and as with any portfolio, different assets produce different results…To the developers: We have a deal,” Christian said. “We expect all developers, no matter how large, to abide by their commitments.”
Governor Hochul Announces New 10-Point Action Plan to Expand the Renewable Energy Industry and Support Clean Jobs in New York State
Following the Public Service Commission decision to deny rate adjustments to current contracted offshore wind & renewable energy developers, Governor Kathy Hochul released a new 10-Point Action Plan to expand and support the large-scale renewable energy industry in New York.
“Strong, continued support for expanding the renewable energy sector is critical to realizing the full potential of our green economy and protecting New Yorkers from the climate crisis,” Governor Hochul said. “This 10-point action plan underscores our commitment to addressing challenges that this sector is experiencing all across the country and hardens our resolve to ramp up our efforts in providing affordable and clean energy to all New Yorkers.”
The 10-point Action Plan details a series of benchmarks and activities slated for the coming months, offering insight into how the Governor’s Administration plans to overcome recent macroeconomic and inflationary challenges that have impacted the renewable energy sector.
ACTION 1: Announce Offshore Wind and Onshore Renewables Awards in the Near Future
NYSERDA will announce an award of offshore and onshore renewable energy projects along with major supply chain investments.
ACTION 2: Execute on Public Service Commission Order and Assess Renewables Portfolio Status NYSERDA will address the directives issued in the October 2023 Public Service Commission (PSC) Order. The impacts on its large-scale renewables contracted portfolio will be assessed.
ACTION 3: Launch Accelerated Competitive Procurements
NYSERDA will launch an accelerated renewable energy procurement process for both offshore wind and onshore renewables. This aims to backfill any contracted projects that are terminated. The process will be guided by core principles, including prioritizing competition, simplifying bid requirements, incorporating inflation indexing, applying critical labor protections, and collaborating with the industry.
ACTION 4: Leverage Federal Support and Partnerships New York State
New Yord State will actively engage with the Federal government to bring forward market solutions, including establishing a Memorandum of Understanding (MOU) with the U.S. Department of Energy (DOE) Loan Programs Office to access low-cost financing.
ACTION 5: Build Transmission Infrastructure
New York State is investing and actively planning a buildout of transmission infrastructure across the State including $4.4 billion in 62 local transmission projects to support clean energy integration in upstate areas and $4.1 billion in transmission upgrades to integrate offshore wind and increase reliability for Long Island and New York City.
ACTION 6: Build the Offshore Wind Supply Chain
New York State is investing $700 million in offshore wind supply chain infrastructure and working with other states and federal agencies to collaborate and reduce costs through a U.S. supply chain.
ACTION 7: Build the Clean Energy Workforce
Starting in 2024, the New York Power Authority will contribute up to $25 million annually to the Department of Labor for renewable energy training, ensuring a Just Transition for energy workers. In addition, NYSERDA is putting workforce development, inclusion, and equity in the forefront of New York’s large scale renewables industry.
ACTION 8: Plan for Next Phase of Offshore Wind Deployment
New York State’s Offshore Wind Master Plan 2.0 will provide a plan for the future of offshore wind development, including in deeper waters, that will allow for the expansion of the industry and ability to meet regional development targets.
ACTION 9: Engage in Active Industry Outreach and Dialogue
New York State will increase industry outreach following the PSC order through roundtable discussions.
ACTION 10: Advance Public Engagement and Outreach
New York State is committed to fostering public engagement and outreach, transparency, and collaboration.
In the News-New York City
Adams Administration’s New Front In War On Rats: Containerize Trash At Nearly All Residential Buildings In NYC
New York City Mayor Eric Adams and New York City Department of Sanitation (DSNY) Commissioner Jessica Tisch this week launched a plan to containerize waste at approximately 95 percent of residential properties across the five boroughs.
Beginning in the fall of 2024, buildings with nine or fewer residential units will be required to place all trash in secure containers, and in specific, official NYC Bins beginning in the summer of 2026.
The official NYC Bins will be available from a vendor through a request for proposal process that begins today, with prices capped substantially lower than they would be in retail stores.
According to Mayor Adams, the multi-phase strategy will get black bags off of New York City streets, reclaim public space, and improve quality of life for all New Yorkers.
The new residential garbage containerization rule will cover all 765,000 New York City buildings with nine or fewer units. It follows Mayor Adams and Commissioner Tisch’s expansion of containerization rules to containerize all commercial waste. Between the commercial containerization effort and these new residential rules, 70 percent of the city’s trash is headed into containers.
The Adams administration is also advancing a plan to containerize residential trash in the remaining 5 percent of buildings, which have 10 or more units. Containers for the largest buildings will go on the street — though many large buildings have loading docks and will not require containers. This on-street container approach is being piloted on 10 residential blocks and at 14 schools in Hamilton Heights, Manhattan, and developments in this process will be the subject of future announcements.
The official NYC Bins will be designed for mechanized collection. DSNY will retrofit or replace hundreds of collection trucks, adding mechanical tippers compatible with the new bins. This upgrade will speed up collection and minimize the possibility of street mess from manual collection.
The selected vendor will be required to have bins available when the residential rule goes into effect in the fall of 2024 and to be able to supply all bins — including replacements as needed — by the full implementation date in the summer of 2026.
Comptroller DiNapoli: Wall Street First Half Profits Total $13 Billion, Down From 2022
Wall Street’s 2023 first half profits of $13 billion were down 4.3% from the same period last year but tracked the industry’s return to pre-pandemic levels of revenue after record profits in 2020 and 2021, according to State Comptroller Thomas DiNapoli’s annual report on the performance of New York City’s securities industry.
“The securities industry’s two years of record profits helped stabilize New York’s economy in difficult times,” Comptroller DiNapoli said. “Since then the industry has maintained profits consistent with pre-pandemic levels. But these are volatile times in America and globally, and Wall Street’s relatively stable profits and employment levels could change quickly. Further declines could weaken New York’s tax revenue from the securities industry and have repercussions for our state and city budgets.”
Securities industry performance is traditionally measured by the pretax profits of the broker/dealer operations of New York Stock Exchange (NYSE) member firms. There are now 132 member firms, down from more than 200 in 2007, before the global financial crisis.
In 2022, the city’s securities industry profits of $25.8 billion were a 55.8% drop from the previous year, but they were on par with pre-pandemic performance when annual profits averaged $22.3 billion from 2015 to 2019. That trend continued through the first half of 2023. If the rate of decline in profits in the first half of 2023 holds steady for the rest of the year, annual profits could fall to $24.7 billion, from $25.8 billion in 2022. However, economic uncertainties could cause profits to decline even more in the second half, the Comptroller said.
As the Federal Reserve has tightened monetary policy to fight inflation, the industry has seen a 46% decline in revenue from commissions and underwriting activities over the past two years, due to the higher cost of credit and a significant fall off in debt and equity issuances and mergers and acquisitions. Financial firms’ interest expenses were seven times higher in 2022 than in 2021.
According to the Comptroller, market expectations are generally that interest rates will remain elevated for some time, which could further increase borrowing costs and reduce market activity. However, conditions could change rapidly given the uncertainties of the current geopolitical situation, the political turmoil in Washington and changes in inflation and employment.
After two years of record highs, bonuses have declined alongside profits. In March, Comptroller DiNapoli’s office estimated the bonus pool for 2022 was $33.7 billion, 21% smaller than the previous year. The average pay for securities industry workers in New York City, including bonuses, was $497,420 in 2022, which was the second highest on record after 2021’s peak of $516,520 ($548,040 when adjusting for inflation).
Comptroller DiNapoli’s office estimates Wall Street was responsible for $5.4 billion in city tax collections during its Fiscal Year (CFY) 2023, down 16% from its record high of $6.4 billion in 2022. The majority of the $5.4 billion (74%) came in personal income tax collections, which accounted for 23% of the city’s total personal income tax collections.
According to the Comptroller, New York state relies more heavily than the city on tax collections from Wall St. because of its greater dependence on personal income taxes. The industry accounted for $28.8 billion (27.4%) of all tax collections in State Fiscal Year (SFY) 2023, which ended March 31, 2023. About 89% of this came through personal income taxes.
In 2021, the most recent year for which county-level data is available, the securities industry was responsible for 16.4% of New York City’s and 7.3% of the state’s total gross product.
Briefs
New York Leaders Advance Legislation to Protect Children Online
Governor Kathy Hochul, New York Attorney General Letitia James, State Senator Andrew Gounardes, and Assemblymember Nily Rozic this week announced new legislation to regulate social media usage by minors. The bills prohibit minors from accessing addictive feeds without parental consent and prohibit online platforms from collecting and sharing their personal data without consent.
Bill #1: Stop Addictive Feeds Exploitation (SAFE) for Kids Act
The SAFE for Kids Act will require social media companies to restrict the addictive features on their platforms. Currently, platforms supplement the content that users view from the accounts they follow by serving them content from accounts they do not follow or subscribe to. However, algorithmic feeds have been shown to be addictive because they prioritize content that keeps users on the platform longer. Addictive feeds are correlated with an increase in the amount of time that teens and young adults spend on social media and significant negative mental health outcomes for minors. To address this problem, the legislation will:
- Provide users under 18 with a default chronological feed from users they already follow – the same way that social media feeds functioned before the advent of addictive feeds.
- Allow parents to block access to social media platforms for minors between the hours of 12:00 a.m. and 6:00 a.m. and limit the total number of hours per day.
- Prohibit social media platforms from sending notifications to minors from 12:00 a.m. and 6:00 a.m. without parental consent.
- Authorize the Office of the Attorney General (OAG) to bring an action to enjoin or seek damages or civil penalties of up to $5,000 per violation.
Bill #2: The New York Child Data Protection Act
To protect children’s privacy, the New York Child Data Protection Act will prohibit all online sites from collecting, using, sharing, or selling personal data of anyone under the age of 18, unless they receive informed consent or unless doing so is strictly necessary for the purpose of the website. For users under 13, this informed consent must come from a parent. The bill authorizes the Office of the Attorney General to enforce the law and may enjoin, seek damages, or civil penalties of up to $5,000 per violation.
PEF to State Senate: Fix Tier 6 and Increase Compensation to Attract and Retain State Workers
Public Employees Federation (PEF) Vice President Randi DiAntonio testified before the Senate’s Civil Service and Pension Committee this week, urging the state to reform pension plans; fix compensation and the lag payroll system; and combat bullying in the workplace to attract much-needed talent.
“Since 2021, the state has lost 16,858 employees due to attrition,” she told the committee. “This is the highest level of attrition recorded in the decade…”
“Staff are fleeing state employment,” Vice President DiAntonio continued. “We hear it from our members: they can earn more in the private sector. Our members are frustrated they can’t do their jobs effectively or efficiently due to the lack of staff and they are tired of being overworked and undercompensated.”
According to PEF, lack of staffing at New York agencies profoundly inhibits the state’s delivery of public services – from public safety, to support programs for the incarcerated, to appropriate care for the most at-risk residents, to the safety of roads and bridges, and much more.
PEF asserts that Tier 6 does not provide incentives to remain in state service and offers the following improvements: reduce the mandatory contribution for Tier 6 members to 3%; reinstitute the 2% FAS calculation at 20 years of service (currently it’s 1.5%); and reduce retirement eligibility from age 62 OR age 55 with 30 years of service.
New Coalition to Weigh in on Seneca Gaming Compact Negotiations
The non-native casinos and racinos in the Finger Lakes and Western New York regions and unions representing their employees have launched a coalition to weigh in the Gaming Compact negotiations between the State and the Seneca Nation of Indians.
The Fair Compact for All Coalition includes representatives from del Lago Resort and Casino, Finger Lakes Gaming and Racetrack, Hamburg Gaming and Batavia Downs. It asserts that the gaming market is saturated, and the State Comptroller has warned that oversaturation threatens the benefits existing gaming facilities generate for their host areas.
According to the Coalition, the facilities employ more than 3,500 New Yorkers, the majority of whom are union members, and pay close to $180 million in annual state gaming taxes. Rochester Workers United, Horsemen’s Benevolent Protective Association, Delaware North, OTB, and Churchill Downs are also members of the Coalition.
Earlier this year, the Senecas and the State reached an agreement on a Compact. However, enabling legislation stalled in the Assembly when it was released that the deal would have allowed the Senecas to open a casino in the Rochester area. Any agreement on the Compact requires the approval of the State, Seneca Nation, and the federal government. The current Gaming Compact expires on December 9th.
Comptroller DiNapoli: Mobile Sports Betting Adds to State Revenue, While Calls to Problem Gambling Hotline Rise as Gaming Expansion Continues
State collections from the taxes on mobile sports betting totaled $727.4 million in State Fiscal Year (SFY) 2022-2023 and have continued to grow in the first quarter of the current fiscal year, according to a report by State Comptroller Thomas DiNapoli. With the legalization of mobile sports betting, the New York State Gaming Commission noted a 26% increase in problem gambling-related calls to the Office of Addiction Services and Supports (OASAS) from 2021 to 2022.
“Gaming has significantly expanded in the state in the last several years,” Comptroller DiNapoli said. “With the ease and 24/7 availability of mobile betting apps, problem gambling and addiction are poised to increase. More attention should be devoted to understanding the implications of mobile sports betting, particularly on young New Yorkers.”
In 2022-23 state revenues from lottery sales and taxes on gaming revenues grew to $4.8 billion. The increase is primarily from the implementation of new forms of gaming rather than from increased consumption of existing ones.
Comptroller DiNapoli also noted that collections from the taxes on gaming revenues of the commercial casinos have yet to return to SFY 2019-20 levels. In addition, New York’s gaming industry has not recovered from 2020 losses of approximately 3,400 jobs. Employment in 2022 was nearly 20% lower than its pre-pandemic level.
Court Rules the NY Commission on Ethics in Lobbying & Government May Continue Its Work During Appeal Process
The Supreme Court Appellate Division in Albany this week issued a stay to allow the State’s Ethics Commission to continue its work as the court considers a challenge to a Supreme Court Ruling that found the Commission unconstitutional.
Commission Chairman Frederick Davie and Executive Director Sanford Berland issued a joint statement saying the order would allow the panel to “continue its work and fulfill its mission as the appeal works its way through the judicial process.”
In September Albany Supreme Court Justice Thomas Marcelle ruled that the Ethics Commission, enacted as part of the 2022-2023 State Budget, violates the state Constitution by operating without sufficient oversight from the governor.
Mayor Adams Launches Greenway Expansion In Five Outer Borough Corridors
The Adams Administration this week launched an expansion of New York City’s greenways – filling gaps in the outer-borough greenway network to create 60 miles of greenway corridors. Through this expansion, the Adams administration will build more than 40 miles of new protected bike infrastructure and explore improvements to existing infrastructure along the corridors in Queens, Staten Island, Brooklyn, and the Bronx.
Queens Waterfront, Gantry Plaza State Park to Little Bay Park (16 miles): This corridor will close gaps in cycling routes from Long Island City and Astoria to East Elmhurst and College Point, Queens.
Historic Brooklyn, Coney Island to Highland Park (12 miles): This planning process will explore new connections to the United States’ oldest bike lanes on Ocean and Eastern Parkways, addressing gaps in the greenway network running from the southern tip of Brooklyn at Coney Island to the Brooklyn/Queens border.
Staten Island Waterfront, Goethals Bridge to Verrazzano Bridge (10 miles): This greenway will provide a safe east-west cycling and walking route across the entire North Shore of Staten Island.
South Bronx, Randall’s Island Park to SUNY Maritime (15 miles): From Randall’s Island eastward, the greenway will simplify and improve safety for commutes to industrial job centers like Hunts Point.
Southern Queens, Spring Creek Park to Brookville Park (seven miles): The Southern Queens Greenway will provide access to John F. Kennedy International Airport (JFK), complementing work by the Port Authority of New York/New Jersey.
Coming Up
New York State
Tuesday, October 17th
To Discuss Retention and Recruitment for Civil Service Jobs in New York State, the New York State
Pension Fund, Pensions, and Civil Service Benefits
New York State Senate Standing Committee on Civil Service and Pensions
Senate Hearing Room, 250 Broadway, 19th Floor, New York, 10 a.m.
Thursday, October 19th
Autism Spectrum Disorders Advisory Board Meeting
New York State Office for People with Development Disabilities
Empire State Plaza, Meeting Room 1, Albany, 11 a.m.
The Impact of Artificial Intelligence on the Workforce
Assembly Standing Committee on Labor & Science and Technology
Roosevelt Hearing Room C, Legislative Office Building, 2nd Floor, Albany, 10 a.m.
New York City
Monday, October 16th
Committee on Environmental Protection, Resiliency and Waterfronts, Council Chambers, 1 p.m.
Oversight – DEP’s Management of Noise Complaints.
Tuesday, October 17th
Subcommittee on Zoning and Franchises, 250 Broadway – Committee Room, 16th Floor, 11 a.m.
Committee on Land Use, 250 Broadway – Committee Room, 16th Floor, 1 p.m.
Wednesday, October 18th
Committee on Immigration, Council Chambers – City Hall, 10 a.m.
Oversight – Legal Services for Asylum Seekers in New York City.
Committees on Criminal Justice & Hospitals, Committee Room – City Hall, 1 p.m.
Oversight – Outposted Therapeutic Housing Units.
Committees on Education & Higher Education, Council Chambers – City Hall, 1 p.m.
Oversight – Seal of Biliteracy in DOE High Schools and at CUNY.
Thursday, October 19th
Committee on Finance, Committee Room – City Hall, 10 a.m.
City Council, Council Chambers – City Hall, 1:30 p.m.
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