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Power Authority gets expanded role in energy projects

ALBANY — In a move seen as helping the state achieve its ambitious renewable energy targets, the New York Power Authority has received the green light to build and operate power generation stations including ones that convert wind and solar to electricity.

“We are well positioned to develop new renewable energy generation resources, in collaboration with our state partners, stakeholders and the private sector, to accelerate the state’s decarbonization journey while helping to prepare New York’s workforce for the clean energy transition with good-paying jobs,” Justin Driscoll, acting president of NYPA, said after the authorization was tucked into what is now the approved state budget.

The budget sets the stage for the authority to plan, design, develop, finance, construct, own, operate, maintain and improve renewable energy stations “either alone, or jointly with other entities,” according to the legislation.

But the expanded role for NYPA as the state moves to cut its reliance on fossil fuels isn’t coming without controversy.

“To me, this is a political response to a perceived problem,” Gavin Donohue, president of the Independent Power Producers of New York, told CNHI.

Donohue argued the private sector is prepared to make investments in green energy projects and is better equipped than NYPA to put them online.

He said he believes the legislation was approved because it was a high priority for lawmakers aligned with the Democratic Socialists at the statehouse and was advocated by Rep. Alexandria Ocasio-Cortez, D-Queens.

Advocates for the legislation said they had to overcome resistance by Gov. Kathy Hochul, whose administration eventually agreed to the measure dubbed the Build Public Renewables Act.

“An unprecedented movement of New Yorkers, unions, and environmental justice groups from Long Island to Buffalo came together to fight back against Hochul’s attempts to weaken the bill,” : Lee Ziesche, spokesman for the Public Power NY Coalition..”And together, we won.”

Ziesche acknowledged that a more robust version of the public power proposal was “weakened” during the negotiations between Hochul and lawmakers, with a proposed mandate to build new projects after 2035 removed from the legislation.

James Hanley, a senior policy analyst for the Empire Center for Public Policy, said the public power legislation is flawed, with most aggressive advocates being “socialists who hate private power because it gets a profit and they think profit is evil.”

“What they really want is to socialize all the power in New York, but they can’t get that so with this they are pushing NYPA for a little more action,” Hanley said. “But NYPA doesn’t have the ability to build renewable power on their own. They don’t have the in-house expertise because they have never done wind and solar. They will end up purchasing it on the market from private producers.”

Dennis Higgins, an Otego resident who tracks state energy policy, said the new legislation will likely have significant consequences for rural regions of New York.

Higgins said he is concerned the assessment model the state will use for energy projects will rob communities of their fair share of tax revenue and potentially allow NYPA to use eminent domain in the buildout of transmission lines, moves that would undermine home rule.

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