NETFLIX EXEMPTION — POLITICO’s Ry Rivard: 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.”
OFFSHORE WIND TRANSMISSION TERMINATED — POLITICO’s Marie J. French: President 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.
— On the 2035 target: "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," said Liz Grisaru, a senior adviser for policy at the department, during the meeting. 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."
— Reactions: The New York League of Conservation Voters’ Julie Tighe said the group is “deeply disappointed” by the decision. “While the federal government continues to undermine progress on clean energy, New York should be doubling down on our commitment to become energy independent, not stalling it,” she said in a statement. “These lines take many years to plan, permit, and build — by kicking the can now, we’re risking falling behind in our clean energy transition and driving up costs in the future.” Natural Resources Defense Council’s Chris Casey also found the decision “deeply disappointing.”
“Rather than stepping back, the state should be continuing low-cost, high-value work — such as completing the grid operator’s cost benefit analysis, selecting the most effective project, and advancing state-level approvals — to position New York to move quickly once federal barriers ease,” he said in a statement.
The Alliance for Clean Energy New York and the New York Offshore Wind Alliance, which pushed for work to continue on the transmission project, issued a more milquetoast comment: “Offshore wind projects can take more than a decade to develop, spanning far beyond state and federal election cycles. We encourage New York State to continue developing infrastructure in the near-term that will enable new generation to come online, addressing reliability and affordability for New Yorkers.”
ENERGY ASSISTANCE EXPANDED — POLITICO’s Marie J. French: More 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.
— Also at the PSC: The 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 Rochester transmission project to improve reliability … Central Hudson will have to start demand response programs and non-pipeline alternatives under a gas planning order.
NEXT GOVERNOR COULD EASILY REMAKE BPU — POLITICO’s Ry Rivard: New Jersey’s next governor could quickly remake state energy policy after taking office by filling three seats on the powerful five-seat Board of Public Utilities.
The board has been down a member for more than a year and a second vacancy opened Wednesday following the abrupt departure of Republican member Marian Abdou, who said she was leaving to tend to her family.
A third spot could open next March, when Democratic commissioner Zenon Christodoulou’s term expires.
That means unless Gov. Phil Murphy, a term-limited Democrat, can get the Senate to quickly approve a pair of new members, his successor will be able to totally reshape the board during their first months in office. A Murphy spokesperson said the governor expects to fill the vacancies during the lame-duck legislative session after the election in collaboration with the Senate.
UTILITY CALL CENTER LAW UNCERTAIN — POLITICO’s Marie J. French: The fate of a union-backed measure to keep and expand utility customer service jobs in New York is uncertain after a federal court ruling.
GREENWAY — Gov. Phil Murphy broke ground on a new rails-to-trails greenway to connect Newark and Jersey City. In the bed of an old Norfolk Southern line, the trail for bikes and pedestrians will eventually extend for nine miles through parts of Essex and Hudson counties. The first mile, which is in Newark and expected to be completed by the end of 2026, will cost about $65 million. It will be the first new state park in decades.
Brendan Gill, an Essex County commissioner who championed the project, said it took 15,000 letters to Murphy and other officials to get going and had been under discussion for well over a decade. “There was excuse after excuse after excuse as to why this project was never going to happen,” he said.
Sen. Teresa Ruiz, who represents Newark, described the toxins and shabbiness of the area when it was an abandoned rail line and said, “imagine the good of what this open space can do.” — Ry Rivard |
