New York Business Community Starting To Wake Up About The Coming Energy Train Wreck

In 2018 New York’s voters suddenly elected a far more left-wing legislature than we had previously had, particularly the State Senate (the Assembly having already been deep in the progressive camp). Taking office in 2019, the new legislators quickly got to work seeing how much destruction they could wreak in a short period of time.

One product of their efforts was what we call the Climate Leadership and Community Protection Act (CLCPA), enacted in July 2019. The point of the CLCPA was to have New York State rescue the climate and save the planet, which supposedly was going to be accomplished by imposing mandates for eliminating hydrocarbon fuels from the energy system of this one little state. It seems that nobody had pointed out to the very earnest legislators that New York represents only a small fraction of 1% of world CO2 emissions, the total elimination of which would barely be noticed in the overall world carbon balance. But the point was not necessarily to make any noticeable impact on world carbon emissions, so much as to show our virtue and our “leadership” by destroying our own wealth as an example to others, or something like that. Of most immediate consequence in the CLCPA were mandates for the electricity system, that 70% of our electricity must come from “renewables” by 2030 (“70x30”) and 100% from “zero-carbon” sources by 2040 (“100x40”).

Well, here we are in 2026 — 7 years down and only 4 to go toward the 70x30 mandate — and we have made almost no progress in “de-carbonizing” the electricity system. It is obvious to any thinking person that the 70x30 mandate has become a joke (to the extent that that was not obvious from the outset). But there is the mandate written in black and white in a statute. Is anything to be done?

Actually, there is a way out. Buried in the CLCPA there is a provision that was added as Section 66-P(4) of the Public Service Law. That provision gives the Public Service Commission the ability to “suspend or modify” the obligations of the CLCPA if it conducts a hearing, and after that hearing makes one of several findings, such as that suspending or modifying the mandates is required to maintain “safe and adequate” electric service, or that the mandates are causing a significant increase in customer arrears or service disconnections. Here is relevant text of the Act:

The commission may temporarily suspend or modify the obligations under such program provided that the commission, after conducting a hearing . . . makes a finding that the program impedes the provision of safe and adequate electric service; the program is likely to impair existing obligations and agreements; and/or that there is a significant increase in arrears or service disconnections that the commission determines is related to the program.

As readers here know, during 2025, I, along with a small group of colleagues (Roger Caiazza, Richard Ellenbogen and Constantine Kontogiannis), started efforts to try to get the PSC to pay attention and invoke this provision. One of the things we did was to intervene in a rate proceeding initiated by the utility (Con Edison) serving New York City and Westchester County. I have reported on that intervention on several occasions, for example here and here. Another thing we did was to intervene in another PSC proceeding, this one with the number 22-M-0149, called “Assessing Implementation of and Compliance with the Requirements and Targets of the Climate Leadership and Community Protection Act.” Here is a link to the filing of my colleagues and myself in that proceeding.

As this process has gone on, there has been an aspect that is completely surreal. Here we are, four very knowledgeable guys, watching a complete train wreck unfold before our eyes, something of huge consequence to every New Yorker, and particularly to every business operating here. And yet the entire effort to avert the train wreck has been carried out by four individuals on their own time and with their own money, with no interest of any kind shown by the thousands of businesses who are in the cross-hairs of the state climate zealots. I have long thought that that would eventually have to end.

Three days ago, it finally did. On January 6, a large group of trade associations and businesses in New York State, calling themselves the Coalition for Safe and Reliable Energy (Coalition), filed a Petition in proceeding 22-M-0149, calling on the PSC to hold a hearing on whether to suspend or modify the mandates of the CLCPA. The Coalition makes clear its own position that the mandates must be suspended.

My excellent colleague Roger Caiazza, always alert for these kinds of things, already put up a post about this filing at his blog Pragmatic Environmentalist of New York.

The Coalition’s Petition lists some 34 members, mostly broad-based trade associations. However, they are not randomly selected. All but two have addresses in what we call “upstate” New York, in other words, the part of the State North of New York City. (Of the remaining two, one — the National Federation of Independent Businesses — is based in Washington, D.C., while the other — Northeast Hearth, Patio, and Barbecue Association — is based in Massachusetts.). Not a single member gives an address in New York City (about 43% of the State’s population) or Long Island (about 15% of the State’s population). Most of the addresses are from places like Buffalo, Rochester, Syracuse, Albany and Binghamton. To be fair, there is one member — the Business Council of New York State — that, although based in Albany, represents businesses throughout the State, including major national businesses in New York City. Still, the absence of the New York City business community from this Petition is striking.

The Coalition’s Petition makes obvious points that echo what my colleagues and I have long been saying, and that the business community should have been screaming about for years. At least some substantial portion of that community is now starting to wake up. My main comment is that the Petition is much too soft on the morons running state energy policy, trying to feign general support for the goals of the CLCPA while pretending that they are just seeking some teensy, weensy postponements.

I’ll give you some excerpts from the Petition, with interspersed comments. From page 1-2:

Recent evidence suggests that the Renewable Energy Program, and its associated renewable energy targets, may impede the provision of safe and adequate electric service and upset the necessary balance of reliable, economic and sustainable energy in New York State. This evidence justifies commencement of the hearing process in PSL § 66-p (4), which will allow the Commission to determine whether the temporary suspension or modification of the Renewable Energy Program obligations is necessary to ensure the continued provision of safe and adequate electric service.

Actually, the recent evidence does not merely “suggest” that the CLCPA mandates “may impede” the functioning of the electrical system, but rather definitively establishes that the entire program is infeasible and impossible.

From page 2:

Recent data from the Commission demonstrates that New York will not achieve - or even come close to achieving - the 70% target by 2030. In addition, recent developments at the federal level impacting clean energy are likely to have a negative impact on renewable energy in the near term.

That’s a huge understatement, but we’ll take it. From page 3:

The inability of New York to develop the amount of renewable energy generation necessary to meet the 70% target by 2030, the increasing retirement of aging fossil-fuel generators due to the CLCPA, and the uncertainty surrounding the development of resources necessary to meet the zero emissions target by 2040, presents a reliability concern.

“Presents a reliability concern”? How about, instead, “this is completely delusional, can’t possibly work, and is putting all New Yorkers in serious danger”?

And from page 23:

The Coalition is generally supportive of the continued pursuit of renewable energy generation – but not at the expense of grid reliability and safe, adequate and affordable electric service. The inability to timely develop renewable generation and keep up with forecast demand necessitates keeping all options on the table, including existing fossil-fuel generation.

They just can’t stop themselves from continuing to pay lip service to the “pursuit of renewable energy generation.” I would say that the time for engaging in that fantasy has long passed.

Anyway, to the Coalition for Safe and Reliable Energy, I say, welcome to the fray! I look forward to working with you, and with the many others who will soon be joining this effort as the Climate Act nonsense falls apart.