Good morning and welcome to the weekly 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.\n\nThe accelerated phaseout of federal tax credits for clean energy has increased uncertainty for state efforts to bolster renewables. States are delaying procurements of new renewables, including offshore wind and solar, as they evaluate the energy impacts of the One Big Beautiful Bill Act. Energy experts and policymakers expect consumer costs to be higher due to policy changes in the GOP megabill. “Those costs will certainly increase, not just from short term supply shocks and the loss of federal tax credits but also from the uncertainty,” said Julia Hoos, an energy analyst with Aurora Energy Research.\n\nWhy it matters: New York, New Jersey and other Northeast states have ambitious renewable energy goals. Democratic leaders were already signaling delays in meeting them after rising costs led to canceled contracts before President Donald Trump’s election, but the looming end of federal support elevates the uncertainty and potential for missed milestones. “These goals were based on, predicated on, offshore wind and solar really emerging as primary energy sources,” Gov. Kathy Hochul told reporters on July 11. “But I have to deal with the reality that with a president that’s hostile to those interests — and has told me directly that — how do we pretend that the goals will be met when all the incentives to invest in those industries has dissipated?”\n\nThe embattled operator of the nation’s largest electric grid agreed to hear from concerned governors’ offices next week following a bipartisan letter from state leaders questioning whether it has its act together. In recent days, 10 governors, including three Republicans, have questioned the direction taken by PJM Interconnection LLC, which runs the grid and energy market for 13 states and Washington, D.C. the grid operator would make time at the July 23 PJM Members Committee meeting to hear from the governors’ representatives, who are expected to urge the grid operator to fill two seats on its nine-seat board with people handpicked by the states. On Wednesday, the governors of Delaware, Illinois, Kentucky, Maryland, Michigan, New Jersey, Pennsylvania, Tennessee and Virginia told PJM it is On Thursday, Ohio Gov. Mike DeWine, a Republican, sent PJM a separate letter saying he supported his fellow governors’ position. While blue states have long criticized PJM, the bipartisan criticism is perhaps the most serious political threat to PJM in its decades of existence. In a letter to governors, Mills — a former energy industry executive and consultant — defended his organization’s record and said PJM is keeping the lights on “through some of the most challenging circumstances that any grid operator, anywhere, has faced.”\n\nThe New Jersey Department of Environmental Protection is expected to publish substantially amended coastal building rules i . The Department of Public Service holds public statement hearings on the Propel NY transmission project on Long Island, 1 and 6 p.m., Knights of Columbus, 81 Sea Cliff Ave., Glen Cove. The Department of Public Service holds public statement hearings on the Con Edison rate hike proposal, 6 p.m., JCC of Staten Island. The Department of Environmental Conservation holds a on the draft cryptocurrency environmental impact report, 2 p.m. The New York State Energy Planning Board meets to vote on a draft energy plan, 1 p.m., Empire State Plaza, Meeting Room 6, Albany. The Department of Public Service holds public statement hearings on the Propel NY transmission project on Long Island, 1 and 6 p.m., Nassau County Legislature. The PJM Members Committee is expected to hear complaints from governors’ representatives, The Department of Environmental Conservation holds a on the draft cryptocurrency environmental impact report, 4 p.m.\n\nThis is a project of super-importance to the Trump administration, and I was honored to be asked to do it. Syracuse.com explores whether blocking gas-fired power plants . OPINION: NYSERDA President and CEO Doreen Harris touts , plus a nascent idea for a new nuclear plant upstate. NJ Transit’s new budget “calls for $980 million in fare revenue, but NJ Transit has failed to make its fare revenue goals for the past nine years,” . Netflix is getting a major exemption from New Jersey’s new coastal flood rules after months of lobbying over permitting issues at the sprawling former Army base it is working to redevelop. The carve-out will allow one of Democratic Gov. Phil Murphy’s pet projects — a $1 billion film and television studio — to avoid complying with climate change regulations his administration has been working on since before the pandemic. Changes to the draft rules show the administration plans to exempt film studios, like Netflix, that have partnerships with the state’s Economic Development Authority. Netflix is planning to build 12 soundstages at Fort Monmouth, a 292-acre former Army installation in Eatontown and Oceanport, New Jersey. State Sen. Declan O’Scanlon, a Republican who represents the area, said he’s “thrilled” Netflix got the carve-out but said every coastal development project should get the same level of “deliberation and fair consideration.” The governor called changes to the flood rule a compromise. “This is a classic situation where you’re trying to get the right balance,” Murphy told reporters Tuesday in Newark. In lobbying disclosures from this year and last year, Netflix reported lobbying the DEP “regarding environmental permitting issues related to the development of the former United States Army Base named Fort Monmouth.” The company also reported lobbying Eric Brophy, the governor’s deputy chief of staff for economic development, about “DEP flood report rules.”\n\nPresident Donald Trump’s quest to stop “windmills” in the ocean has led New York to abandon a major transmission project intended to support offshore wind. The decision to cancel the proposed investment is an acknowledgment that New York will not meet its 2035 offshore wind target given Trump’s indefinite pause on permitting for the technology. Offshore wind is fundamental to the state’s efforts to reduce greenhouse gas emissions. Public Service Commission Chair Rory Christian criticized federal attacks on the industry and said the commission’s decision was necessary to protect ratepayers. The commission canceled the process to select a transmission plan during its regular monthly meeting Thursday. Staff does not expect any additional generation to be developed in the New York Bight until federal policy changes, and even if the federal government resumes its support of the industry in a few years, projects will likely not be operational by 2035. After the meeting, DPS spokesperson Jim Denn said “while the goals will be difficult to achieve by 2035, it is possible more offshore wind projects could come online by then depending on whether there are any shifts in federal policy.”\n\nMore utility customers in New York will receive bill discounts under an expanded affordability program approved Thursday. The Public Service Commission voted to expand eligibility for the state’s “energy affordability program” to moderate-income residents. The move is expected to provide financial assistance to an additional 1.6 million households. “With this expanded policy, we expand our reach to more households — households who had previously been excluded from this vital support because they didn’t meet legacy criteria — even though they were still struggling to pay their bills,” said Public Service Commission Chair Rory Christian. “More New Yorkers will be able to afford to keep the lights on.” Utility costs have been raising affordability concerns, with Gov. Kathy Hochul slamming proposed rate hikes and customer advocates pointing to the high number of people unable to pay their bills. The expanded program was required by the state budget passed in 2023 as lawmakers sought to address those concerns.\n\nThe commission took steps to hold utilities accountable for delays and problems with community solar credits and billing. New performance metrics could penalize utilities, although the commission only adopted two of six proposed measures. That was partly due to a recognition that complaints about consolidated billing have declined in recent years and that any costs to improve utility billing systems would be passed on to ratepayers. “I think these provisions are going to encourage the right behavior from utilities and also, compensate customers if utility behavior is not aligned with our expectations,” Christian said. About 224,000 customers across the state are enrolled in community distributed generation programs, according to Department of Public Service staff. The commission also authorized the utilities to increase the fee utilities collect from community solar projects from 1 percent to 1.5 percent to cover their costs to comply with the order .… The commission also approved a to improve reliability … Central Hudson will have to under a gas planning order.

Tax credit whiplash

The phaseout of federal tax credits for clean energy has increased uncertainty for state efforts to bolster renewables, with New York and New Jersey delaying procurements of offshore wind and solar projects. Bipartisan criticism of PJM Interconnection LLC has intensified, while New Jersey amends coastal building rules and Netflix secures an exemption from flood regulations. New York cancels an offshore wind transmission project due to federal policy changes, and an expanded energy affordability program benefits moderate-income households.