Legislative Memos

Memorandum of Support - S.1549 (Parker)

IPPNY strongly supports S.1549 (Parker). This bill passed the Senate unanimously in 2021, and it would help meet the Climate Leadership and Community Protection Act’s (CLCPA) requirement of having a zero-emitting statewide electrical demand system by 2040 (100 by 40 target), while preserving electric system reliability, creating high quality jobs, and maintaining consumer affordability. Additionally, it would further the implementation of the Climate Action Council’s adopted Scoping Plan. The CLCPA mandates a transition away from fossil fuels, thus creating a need for new technologies, and it requires the NYS Public Service Commission (PSC) to designate what technologies qualify as zero emissions.

As the State’s economy electrifies to meet the CLCPA’s targets, the current electricity grid will need to be expanded at least three-fold. The invention and installation of a new class of technology that is both dispatchable (able to operate on demand whenever needed) and emissions-free – also known as dispatchable emissions-free resources (DEFRs) – will be necessary to meet the 100 by 40 target. The adopted Scoping Plan indicates the importance of identifying, exploring, evaluating, and supporting the development of DEFRs. More specifically, the Scoping Plan indicates that the PSC, in coordination with the New York State Energy Research and Development Authority, the NYS Department of Environmental Conservation, and other agencies “should identify, explore, evaluate, and support the development of dispatchable technologies and solutions as they emerge in support of the Climate Act’s requirements for a zero-emission electricity system by 2040 and for consistency with Section 7(2) and 7(3) of the Climate Act.”

This bill would require the PSC to establish a competitive program to foster the development of, and investment in, 1 gigawatt (GW) of zero emissions energy systems by 2030, to help reach the CLCPA’s 100 by 40 target. Importantly, this legislation does not specify what zero emissions energy systems should be and asks the PSC to determine what technologies should be eligible and to address costs. The program would create market signals for these technologies and associated fuels. Further, this legislation would also require the PSC to include within the program provisions of benefit to labor unions, along with an apprenticeship training program: the prevailing wage; project labor agreements; and Buy American provisions that were enacted for renewable energy systems.

This legislation would help begin to fill the technology gap that is needed to ensure the 100 by 40 target can be met reliably. The New York Independent System Operator (NYISO) has been consistent over the past three years that the State needs at least 27-45 GW of these resources by 2040 to keep the system reliable when no emissions from energy generation are allowed. The NYISO is the federally established entity that ensures electric system reliability requirements are met and that operates competitive wholesale electricity markets in this state.

In August of 2021, IPPNY, the NYS AFL-CIO, and the NYS Building & Construction Trades Council submitted a petition to the PSC to establish a competitive program to foster the development of, and investment in, 1 GW of zero emissions energy systems to help reach the 100 by 40 target, while also maintaining electric system reliability.

IPPNY submitted comments to the PSC in 2023 with an affidavit from Sargent & Lundy, which also participated in a technical conference in December of 2023. Sargent & Lundy, a world-renowned engineering firm, has identified DEFRs capable of “filling the gap” created by increased intermittent resources on New York’s electric grid and the retirement of existing fossil fueled resources. To transition away from fossil fuels while maintaining reliability, all solutions must be considered, including new and existing nuclear, hydrogen, renewable natural gas, and carbon capture and sequestration technologies. In February of 2024, IPPNY submitted comments on six legal questions that the PSC posed. In November of 2024, the Department of Public Service Staff released a proposal interpreting key terms under Section 66-p of the Public Service Law, and IPPNY’s provided comments on this proposal.

The PSC has made some progress, but more is required. Almost six years have passed since the CLCPA was enacted, and the IPPNY-Labor petition was submitted nearly five years ago. 2040 is only 15 years away. This legislation would help ensure that the resources needed are in place to enable the electrification of the economy, while maintaining reliability and affordability. 

For the reasons stated above, IPPNY strongly supports S.1549 (Parker).