With state officials pushing for 70% of the state's energy to come from renewable energy sources by 2030, utilities are scrambling for ways to meet the goal. The overall target is to reduce the state's carbon-based emissions by 40% by the end of the decade, compared with 1990 levels.
Exactly how the state will reach those goals hasn't been decided, but a 22-member panel called the Climate Action Council is expected to release a report that provides a preliminary outline of that path by the beginning of next year.
Regardless of what it says, it likely will mean significant changes to the state's utility industry — and for consumers.
It means pushing energy efficiency for consumers — both for the way buildings are designed and insulated to higher standards for the furnaces and appliances found inside.
It means looking for new energy sources beyond the current renewable mainstays, such as solar and wind power. One possibility is mixing hydrogen — which can be refined from water — into natural gas.
It means making changes to the existing electricity transmission system to make it easier to add new sources of renewable energy.
It means shifting from gasoline-powered vehicles to building the extensive network of charging stations that will be needed if those carbon-fueled cars and trucks are replaced by electric vehicles. It likely means developing a plan to phase out appliances and heating systems powered by fossil fuels.
But to get there, the path will be shaped by decisions that will be made in the coming years. And there isn't broad agreement on how to get there.
"There are different views on how much we should electrify and how fast we should electrify," said Donna DeCarolis, the president of National Fuel's utility business. "Most presume that, by 2030, if your furnace breaks, you're going to electrify."
Utility officials are pushing for an approach that uses the existing infrastructure, especially for natural gas, that would continue to use the network of underground pipelines that they already own. In their vision, the pipes would carry natural gas mixed with hydrogen to reduce harmful emissions. That would save money, they said.
But others, including some environmental groups, want to move more forcefully away from carbon-based fuels, including natural gas, and more aggressively toward a more fully electrified future.
That could include a ban on new or repowered fossil-fuel powered electric generation and moving away from conventional natural gas delivery systems. Environmentalists are targeting natural gas use because of its methane emissions.
The state took a big step away from fossil fuels last week when the Department of Environmental Conservation refused to allow two downstate power plants fueled by natural gas to be upgraded.
"Both would be inconsistent with New York's nation-leading climate law, and are not justified or needed for grid reliability," DEC Commissioner Basil Seggos said in a tweet announcing the decision, which was quickly praised by Gov. Kathy Hochul. "We must shift to a renewable future."
Environmentalists hailed the ruling. "We are at a pivotal moment in the fight against the fossil fuel industry, and New York is showing true leadership in rejecting dirty energy and committing to the clean, renewable energy system all people deserve," said Allison Considine, NY Campaign Representative with the Sierra Club.
Utilities and energy producers, however, view natural gas an important bridge fuel, with an extensive infrastructure in place, until the state has built a renewable energy infrastructure to handle the new fuel sources that will be coming online.
"The DEC's decisions to deny permits sends a chilling signal that the business climate needed to develop technologies is at risk," said Gavin Donohue, the president and CEO of the New York Independent Power Producers.
No matter what path the state takes, though, it won't be cheap. The upstate utility systems are aging and need billions in investment to keep up with today's demands, let alone tomorrow's.
"We're going to need to make a lot of changes," said Carl Taylor, the president of New York State Electric & Gas Corp. "It's going to take a lot of investment."
Energy efficiency is going to be a big part of the developing program to reduce the state's carbon emissions. The idea: Using less energy means burning less carbon-emitting fuels. Reducing consumption could cut emissions in half.
"A lot of our investments are going to be focused on getting our customers to use less of our product," said Rudy Wynter, the president of National Grid's New York operations.
The New York Power Authority, for instance, is starting a demonstration project next month to measure the potential for substituting renewable hydrogen for a portion of the natural gas that is used to generate electricity at a Long Island power plant. It's part of the effort to determine whether hydrogen can be a viable fuel in reducing carbon emissions.
But some of the investments will be aimed at getting New Yorkers to use a different kind of utility product.
National Grid, for instance, is funding a program to install 16,000 electric vehicle charging stations across upstate by 2025 in anticipation of a wave of electric vehicles hitting the roads. The company already has installed 200 stations in Western New York through the program and is in the process of building another 200, Wynter said.
Much of the discussion over the next year will center around a plan being prepared by the Climate Action Council, which is expected to release a draft proposal by Jan. 1 that will outline ways to improve energy efficiency, increase electrification and encourage the use of low-carbon fuels in business and industry.
"Next year is going to be important. There's going to be a whole lot of public comment," said DeCarolis, a member of the 22-member climate council.
Cost and affordability is another issue that overhangs the process. Replacing appliances or upgrading heating systems will be costly.
"We know there are going to be more costs, but we don't know what those costs are and who's going to pay for them," DeCarolis said.
Those costs could be a big burden on low-income households, eventually faced with the prospect of installing heat pumps or other more environmentally friendly appliances.
"The folks who have the money and can afford the transition, that's the easier part," NYSEG's Taylor said. "What's it going to cost, and how are we going to ensure that all customers are going to get the benefit of the transition?"
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