New York Emissions-Reduction Bill Would Push Natural Gas Out of Power Sector

SEATTLE (Oil Monster): The New York State Senate overnight Tuesday into Wednesday passed a bill that codifies the goal of achieving net-zero greenhouse gas emissions by 2050 through steep power emissions cuts and a 100% emissions-free power by 2040. Specific impacts on natural gas-fired generators will unfold through regulation, but the law would significantly alter the state's power system and make gas generation illegal by 2040, experts said Wednesday.

"This will mandate a transition to a much cleaner power generation fuel mix and ultimately zero emissions," Miles Farmer, senior attorney with environmental group Natural Resources Defense Council, told S&P Global Platts.

The New York State Assembly is expected to vote on the legislation Wednesday, and if passed, Governor Andrew Cuomo is expected it sign it into law.

"The law sends a message to power generation investors in New York that clean energy is the technology of the future," Farmer said.

The legislation called the New York State Climate Leadership and Community Protection Act includes two features that will impact the power sector. First it creates a framework to meet the economy-wide zero emissions by 2050 goal that the Department of Environmental Conservation is responsible for administering.

Second is a strengthening of the existing Clean Energy Standard and the Public Utilities Commission is responsible for implementing those measures with the New York State Energy Research and Development Authority. That involves a process to strengthen existing goals of 50% renewable energy by 2030 to 70% renewables by 2030, while setting a path toward 100% zero power sector emissions by 2040.

The law creates a Climate Action Council and road map to achieve the goals that include policy work on energy efficiency, regulations for heat pumps and building upgrades that will ultimately lead to burning less fossil fuel in buildings, a state official said in a phone call.

The DEC is finalizing a rule that will limit emissions from 3,300 MW of peaking unit capacity in the state and "something similar" could be advanced for gas-fired power plants, the official said, even though that is not directly part of this legislation.

 Courtesy: www.spglobal.com