A recently signed law expands New York City's solar property tax abatement. This four year tax abatement allows for the construction of solar generating systems with residential and commercial buildings in the city. Building owners would end up saving more than $62,000 per year. The new legislation expands the abatement from 20% to 30% starting in 2024.
Noah Ginsburg, executive director of the New York Solar Energy Industries Association, said this can help make up any lost progress in the city's goal to reach 1-gigawatt of solar by 2030.
"The city has made some good progress toward that goal, but I don't think they were on track to achieve that goal necessarily," Ginsburg said. "This expanded incentive we think puts us more on track to hit that goal. Our forecast is that this will help close that gap by about 95 megawatts, give or take."
While this bill has its own benefits, it can boost other climate legislation in the city. A bill has recently been proposed by City Councilmember Sandy Nurse to get 100 megawatts of solar on city-owned buildings by 2025. By 2030, the bill expands that target to 150 megawatts into private buildings.
Despite the benefits it poses, the abatement was only extended to 2034, at which point legislation will have to extend it again. Ginsburg said that is due to keeping the city's funding in line with federal programs, and added there are plans to introduce a bill to strengthen the state's residential solar tax credit.
"So, anywhere in New York State, today, if you install solar panels on your home, you're entitled to a tax credit of up to 25% of the cost of the system," he explained. "That incentive is capped at $5,000 per household, and that cap hasn't increased since 2006."
Ginsburg noted this proposed legislation would be an inflation adjustment to the incentive cap, and hopes to see the bill before the State Legislature in next year's session.
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While lawmakers and environmental groups strive to lower vehicle emissions and the nation's carbon footprint, many truckers see unrealistic timeframes for new Environmental Protection Agency rules for heavy-duty truck emissions.
Some believe the EPA's push is an attempt to force people into buying electric vehicles, despite the cost and lack of a national charging infrastructure for commercial vehicles.
John Boesel is CEO of the nonprofit CALSTART, which he said has come up with a roadmap to achieving such a network. Boesel is convinced the nation needs to move faster to make an impact on climate change.
"In the future," he said, "we can see a society where we have trucks rolling around with zero emission and zero noise, truck drivers being much happier driving an electric truck, and benefiting communities that have been hard hit by diesel pollution and emissions."
Boesel said today's fleets are exposed to the volatility of the global oil markets, but that would change if they're powered by hydrogen or electricity. He added the Biden administration has an opportunity to make progress in supporting communities that have been disproportionately affected by diesel trucking and pollution.
Hilary Lewis, steel director at Industrious Labs, a group working to decarbonize heavy industry, said Detroit is well positioned to lead on "clean steel" and vehicles, with its robust supply chain and manufacturing capacity. She said the Inflation Reduction Act provides funding for clean steel facilities.
"The auto industry, they have a huge stake in the future of clean steel," she said. "If they were to wake up one day and decide, 'We need clean steel, we need to reduce the embodied emissions of our vehicle,' that would send a huge market signal to steel companies."
Ryan Gaul, president for commercial vehicles at Workhorse, which manufactures EVs in the Midwest, said decarbonizing supply chains has been a priority for a while now, but when it comes to making heavy-duty electric trucks, the regulations are what's missing.
"EVs are a competitive technology; that range is not really a problem anymore, and the benefits of the transition to EV have great effects - not just for the environment, but also for the creation of jobs," said Gaul. "Now, what we're doing in our company is, we're bringing jobs back to the Midwest."
Gaul said he also thinks investment in the public sector would help speed up the transition.
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Just as New York State prepares for its first offshore wind farm to come online, a new report predicted the state will not meet its climate goals.
The Public Power New York report showed, despite great progress, the state will not meet its 2030 clean-energy targets. In October, Gov. Kathy Hochul announced a multibillion-dollar investment in renewable energy projects which would accomplish 70% of the state's goal.
Patrick Robbins, coordinator of the New York Energy Democracy Alliance, described some of the factors at play.
"One answer is a kind of uneven marketplace for financial investment when you're looking at renewable energy," Robbins explained. "There was a number of contracts and leases that fell apart for utility-scale renewables, just in the last two months, here in New York."
He also cited supply chain issues and increased costs for construction materials. Some renewable energy developers canceled projects because their contracts were negotiated prior to the pandemic. But Robbins is confident New York can make up lost ground, and pointed out the New York Power Authority is taking advantage of Inflation Reduction Act funds for renewable energy projects.
While the pandemic may have slowed New York's progress on its climate goals, it is not the entire issue. Robbins emphasized there is more than enough blame to go around. He argued the state could have done plenty of things differently since the goals were set in the Climate Leadership and Protection Act.
"The support from the state itself has really been uneven at best," Robbins contended. "Especially, actually, at the time of the CLCPA's passage. When you're not talking about a strong and dependable state partner, there's only really so much you can do."
Over the next year, Robbins stressed he and other climate activists hope to educate legislators and the public about New York's climate goals and what more could be done to achieve them.
Though 2030 may not be the year the goals are met, Robbins is confident they are within reach. He said the timeline depends on Gov. Hochul and the New York Power Authority's board.
"I am confident that, if the governor and the NYPA board craft an ambitious implementation plan for 2025 and see that through, we will usher in a new era in New York's energy generation that can set a positive example for the country and the world," Robbins added.
Plenty of legislation has passed in recent years to ensure the state moves closer to its goals. However, lawmakers have said some bills like the New York HEAT Act failed due to competing priorities in the budget process.
Disclosure: The Sane Energy Project and Energy Democracy Alliance contribute to our fund for reporting on Climate Change/Air Quality, Energy Policy, Environmental Justice, and Social Justice. If you would like to help support news in the public interest,
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Utilities and government agencies in the U.S. are carrying out plans to transition to cleaner electricity sources. To avoid being left behind, rural communities, including in Minnesota, are leveraging federal resources to expand their power portfolios.
The topic was part of a recent congressional briefing hosted by the Rural Power Coalition.
Sen. Tina Smith, D-Minn., took part, saying investments from the Inflation Reduction Act provide grants and loans to rural electric co-ops, so they can purchase or develop renewable energy systems. There is also funding for municipal utilities and tribal governments.
"These voluntary, technology-neutral programs put rural electricity providers on the path to unleash clean energy for the communities that they serve in a way that works best for them," Smith explained.
Smith noted recent applications are likely to surpass available funds, underscoring strong demand from smaller communities to diversify energy sources. Rural electric co-ops have had a harder time competing with investor-owned utilities in the decarbonization movement, in part because of being locked into coal contracts. In Minnesota, co-ops serve roughly one-third of the state.
Gabriel Chan, associate professor of public policy at the University of Minnesota and co-director of the Electric Cooperative Innovation Center, spoke in the briefing. He said the extra federal support allows co-ops to scale up clean energy production while still managing their existing debt.
"This ensures that the energy transition can move at a rapid pace," Chan pointed out. "While also ensuring that the transition happens on an affordable and reliable path."
He suggested keeping costs lower for the energy transition in rural areas puts their local economies in a better position. According to the National Rural Electric Cooperative Association, such operations serve more than 90% of counties experiencing persistent poverty.
Disclosure: The Rural Power Coalition contributes to our fund for reporting on Budget Policy & Priorities, Energy Policy, Environment, and Rural/Farming Issues. If you would like to help support news in the public interest,
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