EnviroPolitics Blog

Just months after contentious approval, nuclear subsidies under review by New Jersey utility regulators

In April, Board of Public Utilities awarded $300 million in annual surcharges on utility customers’ bills to aid three PSEG plants; officials are taking a fresh look at the subsidies

salem nuclear power plant — Salem nuclear power plant

TOM JOHNSON reports for NJ Spotlight – September 5, 2019

Less than half a year after the state awarded lucrative ratepayer subsidies to keep three nuclear power plants from closing, regulatory officials are beginning to explore whether the subsidies should be extended, or perhaps reduced.

In April, the New Jersey Board of Public Utilities approved roughly $300 million in new annual surcharges on utility customers’ bills to prevent Public Service Enterprise Group from prematurely retiring the Salem I and II units and Hope Creek nuclear plants on Artificial Island in South Jersey.

The decision has had huge implications for New Jersey’s long-term energy policy. Controversy over the subsidies led the Legislature to approve the incentives only after approval was tied to a companion bill promoting clean-energy initiatives, including measures to boost energy efficiency, offshore wind, and solar. All of this was done before the administration of Gov. Phil Murphy adopted a new energy master plan, laying out a blueprint to achieve ambitious clean-energy and climate goals.

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PSEG argued the plants, providing 90 percent of the state’s carbon-free electricity, would be shuttered within three years unless it received the financial incentives because of a steep drop in energy prices. The company yesterday, along with a handful of consultants, claimed at a BPU hearing in New Brunswick that the financial challenges facing the units are even bigger now than last spring when the initial subsidies were awarded.

Joseph Accardo, vice president of regulatory affairs and deputy general counsel of PSEG, said the plants should retain the subsidies at the same level, given the state of energy markets, which have seen prices paid to power suppliers continue to drop.

Under pressure from natural gas

Cheap natural gas has flooded the market, analysts said, increasing uncertainty about the economic viability of the nuclear units. Nuclear energy provides about 40 percent of New Jersey’s electricity, about the same as gas-fired power plants provide.

Without carbon-free power from the three nuclear units, New Jersey will never achieve the Murphy administration’s goals of 100 percent clean energy by 2050, according to Ed Salmon, chair of the New Jersey Energy Coalition and a former president of the BPU.

Those subsidies, dubbed zero-emission credits (ZECs), are scheduled to end in May 2022, but the proceeding initiated yesterday is designed to determine not only whether to extend them, but also whether to reduce what ratepayers pay.

In approving the subsidies last April, at least two of the five BPU commissioners expressed concerns at the price set by legislators in a law authorizing the program. The law allows the agency to reduce the subsidies once they expire; the current subsidies last only three years. The BPU cannot increase the incentives, according to the law.

Only the New Jersey Division of Rate Counsel questioned whether the subsidies need to continue, and at the same level during the initial stakeholder meeting in New Brunswick. The Rate Counsel had opposed the initial granting of the subsidies and appealed the issue in court.

An argument for reducing the subsidies

“Ratepayers are not an endless source of capital,’’ said Brian Lipman, a litigator in the Rate Counsel’s office. “ZEC subsidies are going to have a major impact on ratepayers.’’

He suggested the board explore reducing the size of the zero-emission credits, based on actions at other levels that could increase prices consumer pay for both energy and ensuring there is enough capacity to keep the lights on.

But others defended the subsidies, arguing they are far less than what customers in New York and Illinois are paying to avert the early closing of nuclear power plants in their states.

“Without these ZECs, these plants face uncertain economic conditions in a market flooded by fracked natural gas,’’ said John Kotek, a vice president of the Nuclear Energy Institute.

Frank Huntowski of the Northbridge Group agreed. The financial conditions of the three nuclear power plants in New Jersey and other units in the PJM Interconnection do not merit a reduction in the ZECs, he said. (PJM operates the power grid stretching from the Eastern Seaboard to Illinois, serving more than 55 million customers.)

No one at the hearing raised the issue of just how long the New Jersey plants will continue receiving the financial incentives. At the time BPU awarded the ZECs, it generally was assumed the subsidies would continue for up to 10 years.

However, in modeling done by BPU staff and consultants on a new draft energy master plan, projections seem to indicate the plants will remain open until 2050 — well beyond the expiration of their licenses, which begin to end in 2036, and then later in the next decade.

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Bucks, Montgomery County Pa. Democrats stump for legislation to encourage solar, limit carbon emissions

By Kyle Bagenstose, Bucks County Courier-Times
Posted Sep 4, 2019 at 3:45 PMUpdated Sep 4, 2019 at 5:20 PM

At a press conference in Abington, Democratic state lawmakers connected climate change to Hurricane Dorian and other global events as they promoted bills to increase the state’s use of solar energy while placing a cap on carbon emissions.

State Democratic lawmakers from around the region gathered in Abington’s Crestmont Park on Wednesday to promote energy legislation they say is crucial to halting global climate change and protecting local communities.

“This is the only planet we have. There’s no plan B planet,” said state Sen. Art Haywood, D-4, of Cheltenham. “This event is to make sure we’re clear about the challenge and what we can do to respond.”

The news conference was originally billed as a jointly hosted event by Haywood and state Sen. Steve Santarsiero, D-10, of Lower Makefield, to promote Senate Bill 600, which would require Pennsylvania’s power grid to use 30% solar energy by 2030. Santarsiero was unable to attend the event as he recovers from a bout of pneumonia, his office said, but other legislators connected the bill to recent events, including Hurricane Dorian’s devastation of the Bahamas.

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“Think of the people who are suffering in the Bahamas. It looks like half that island is destroyed,” said U.S. Rep. Madeleine Dean, D-4, of Abington. “Everybody from the pope, to the Pentagon, to prisoners tell you this is an extraordinary threat to our future. We ought to be listening.”

Weather records show that Dorian is the fifth Category 5 hurricane to form in the Atlantic since 2016, which is the first time such storms have formed in four consecutive years since record-keeping began in the 19th century.

Joe Webster, D-150, of Collegeville, also noted the military’s focus on climate change. A U.S. Air Force Academy graduate and retired colonel, Webster pointed to a 2010 report by the U.S. Joint Forces Command that placed climate change among the top security challenges facing the military.

“The migration patterns we’re seeing of displaced peoples all over the world, in Africa and the Middle East, is due to climate change,” Webster said.

Webster also noted that Navy ships in Norfolk, Virginia, are floating several feet higher than they used to, resulting in issues with proper entry onto the vessels.

Haywood said S.B. 600 would work by modifying the state’s Alternative Energy Portfolio Standards, which requires energy generators and distributors to use a certain percentage of alternative energy sources. The bill would up solar requirements from 8% to 30% by 2030 and direct the Pennsylvania Utility Commission to study the benefits of a renewable energy storage program.

Democrats also worked to frame the bill as good for the economy and families, as Haywood claimed an outside study showed it would create 7,500 jobs across the state. Mark Bortman, owner of solar installation company Exact Solar in Newtown Township, also said he supported the bill.

“If we’re able to get this through, it will put Pennsylvania back in the leadership for climate action,” Bortman said. “Going forward, there’s going to be more jobs in renewable energy than fossil fuels.”

Bortman said New Jersey has 30% more jobs in renewable energy than Pennsylvania, despite having 30% fewer people.

Haywood also touted the legislation as bipartisan, as it was co-introduced by state Sen. Tom Killion, R-9, of Delaware County. However, the state legislature’s website still lists Killion as the only Republican co-sponsor since its April introduction. The bill is currently in the Consumer Protection & Professional Licensure Committee, which is chaired by state Sen. Tommy Tomlinson, R-6, of Bensalem.

Democratic lawmakers and leaders from environmental groups also previewed a more robust legislative effort Wednesday, saying they planned to introduce a carbon “cap” bill this fall that would work to place a limit on carbon emissions in Pennsylvania. The state is currently the fourth-largest emitter of carbon dioxide, behind only California, Texas, and Florida, according to the U.S. Energy Information Administration.

According to press materials released at the event, the bill — the Climate Change Mitigation and Energy Transition Act — will seek to cut carbon emissions 90% by 2040.

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Are you going? Plenty of new listings on our Enviro-Events Calendar

Below is just one of a host of events recently posted or coming to Enviro-Events Calendar. If you are interested in energy and environmental issues, classes, forums, seminars, webinars, and social networking opportunities you should subscribe.

Everybody wants to know:
How can I handle my food waste???

At the NJ Composting Council Organics Waste Management Summit we’re excited to share case studies and experiences from companies addressing the challenge that’s on every resident, business and municipalities mind: How can I handle my food waste?

Just last week Governor Murphy issued a conditional veto on a food waste billed aimed at large generators. While we hope an improved bill will pass soon, all stakeholders must be ready.

Strategies must be in place to capitalize on this opportunity for economic growth, job growth and reduction in environmental harm from not just large generators but at a local lev! With that in mind we’re delighted to host the Curbside and Community Organics Pickup/Drop Off panel.

Speaking on this panel will be:

Eileen Banyra, founder of Community Compost Co., is a city planner turned soil farmer. CCC collects and processes food scraps from Northern NJ, selling the compost to a diverse set of customers including Whole Foods.

Greg McCarron, Vice President of SCS Engineers. SCS has extensive experience designing facilities of all sizes, including decentralized composting facilities designed to handle community-wide and town-wide food scraps and organic materials, and can provide solutions to your community’s needs for organics management.

Brett Hoyt, VP of Sales and Marketing for Sustainable Generation. Their Gore Cover, ASP bunker systems are only the final step in the communities he’s seen establish food waste programs and will share those case studies. Get your tickets to the Organics Summit today!
Know a municipality that needs a PO order? please contact us immediately. Copyright © 2019 NJ Composting Council, All rights reserved.

Check out plenty of other great events on Enviro-Events Calendar. While you’re there, use the form in the upper-right corner to be notified of all future updates. A great community service at no cost. Spread the word!

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NJ enacts changes to landmark 2009 site remediation law

Paul M. Hauge, an attorney in the Gibbons law firm’s Environmental Department, details changes recently made to New Jersey’s site-remediation law. This may be of interest to Licensed Site Remediation Professionals, developers, and property owners.

By Paul M. Hauge

In 2009, in the face of a significant backlog of sites that were stuck in the Department of Environmental Protection (DEP) pipeline, the New Jersey Legislature dramatically changed the process of site remediation in the Garden State with the enactment of the Site Remediation Reform Act (SRRA). The SRRA partially outsourced DEP’s review role by authorizing “private” oversight of cleanups by Licensed Site Remediation Professionals (LSRPs). On August 23, 2019, Governor Murphy signed new legislation that made further adjustments to the changes wrought by the SRRA.

The legislation (L. 2019, c. 263), which sailed through both legislative chambers without a single opposing vote, makes a number of changes to the LSRP program, as well as other changes affecting parties responsible for conducting remediation projects.

Amendments Affecting LSRPs

Removal of unoccupied structures from list of areas that must be addressed as an “immediate environmental concern.”
Expansion of LSRP duties to report immediate environmental concerns and previously unreported discharges.
A slight relaxation of licensing requirements for individuals who may have temporarily left the workforce for personal reasons.
Clarification of prior acts and punishments that will disqualify a person from obtaining an LSRP license.
Tightening of LSRPs’ oversight responsibilities to ensure that non-LSRPs do not effectively perform work reserved for LSRPs.
Requiring an affidavit of merit from any party who sues an LSRP for malpractice or negligence.

Amendments Affecting Parties Responsible for Conducting Remediation

Clarification that…

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Isabel Chou joins Widels Marx as partner

Windels Marx has announced the arrival of Partner Isabel D. Chou, resident in the New Brunswick, NJ office. Isabel’s practice focuses on affordable housing, redevelopment, municipal and nonprofit law.

A news release describes her as experienced with the complex structuring and financing of affordable housing and redevelopment projects using federal, state and local government subsidy and incentive programs. She has worked with a range of public housing authorities, municipalities and private developers in the transformation of outdated publicly- and privately-run multifamily housing projects.

Robert J. Luddy, Managing Partner, who has led the firm’s expansion in recent years with lawyers focused in intellectual property, real estate, finance, corporate, bankruptcy, trusts and estates, and probate litigation, said of Isabel’s arrival, “We are committed to deepening our existing strengths and diversifying our practice mix in areas suited to our clients’ needs. We welcome Isabel and particularly her affordable housing, redevelopment and nonprofit experience.”

Prior to becoming a lawyer, Chou spent ten years in nonprofit program management and organizational development, primarily focused on children’s health and education advocacy. She continues to serve as an active committee volunteer for various nonprofit organizations around the country, including the Waterfront Project, a free legal clinic in Hudson County, New Jersey, and the Ricci Institute for Chinese-Western Cultural History at the University of San Francisco in California.

Chou received her J.D. from Rutgers University in Newark, where she was also an editor of the Rutgers Law Review; her M.P.A. from the University of San Francisco; and her B.A. from the University of California, Berkeley. She was a law clerk to the Honorable Carmen Messano in the Appellate Division of the New Jersey Superior Courts.

She is licensed to practice in New Jersey and New York.

Windels Marx now has 143 lawyers firmwide, of which 75 lawyers are licensed to practice in New Jersey and 131 in New York.

If your firm has news of likely interest to our readers, send it to editor@enviropolitics.com for our consideration.

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Beto’s Last Chance at a 2020 Revival

From The Lede in the Texas Observer

After five months mired in the day-to-day grind of a struggling presidential campaign, the El Paso massacre shook something loose in Beto O’Rourke.

After spending more than a week grieving with his fellow El Pasoans, O’Rourke emerged to recast his presidential bid with an expression of “what the fuck?” sentiment reminiscent of his Senate run. In a speech earlier this month, he declared that he was now running with the primary purpose of confronting Trump and his willful provocation of racial violence.

By making Trump’s racism, guns, and immigration the central focus of his presidential campaign and traveling to states that are usually ignored in the primaries, O’Rourke is leaving behind the conventional, inside-the-lines approach that has resulted in his consistent polling below 3 percent.

The spontaneous, just-do-what-feels-right shift—the kind that tends to give campaign operatives and donors the cold sweats—is a callback to the sort of anti-conformist political instincts that helped elevate him to the presidential race in the first place. But will this earnest crusade jumpstart his campaign?

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