Cindy Carr, Sierra Club, cindy.carr@sierraclub.org
Ben Kuebrich, Alliance for a Green Economy, ben@agreeny.org
Ben Siegel, PUSH Buffalo, ben@pushbuffalo.org
ALBANY, NY -- Today, the New York State Public Service Commission (PSC) declined to approve the 20-year long-term gas plan from National Fuel Gas Distribution Corporation of Western New York (NFG), requiring a number of modifications including ending incentives for gas expansion, proposing a gas demand response program, and developing pilot projects to compare cold-climate air-source heat pumps and hybrid heating systems. However, the order failed to rule on the appropriateness of numerous aspects of NFG’s plan including its limited contribution to the emission reductions required by New York’s climate law. The PSC also failed to rule on the outsized role of alternative fuels such as “renewable” natural gas and hydrogen in NFG’s plan and how to properly account for the emissions of these fuels.
NFG’s plan was the first filed in response to the PSC’s 2022 order directing all gas utilities to submit long-term plans detailing how they plan to decarbonize their business models to meet the climate goals set forth in the state’s Climate Leadership and Community Protection Act (CLCPA). The CLCPA mandates that the state reduce greenhouse gas emissions (mainly carbon dioxide and methane) 40 percent below 1990 levels by 2030 and 85 percent below 1990 levels by 2050.
Last week, the Massachusetts Department of Public Utilities released a landmark ruling rejecting Massachusetts utilities’ plans to implement many of the same components found in NFG’s plan including hybrid heating systems that retain the gas system as a backup and customer investment in so-called “renewable” natural gas and hydrogen as viable solutions for decarbonizing the methane gas system.
In response to today’s order, groups issued the following statements:
“Today's order requires some of the much-needed revisions to National Fuel Gas’ dangerous plan, but falls far short of the level of leadership and guidance demanded on the future of gas in New York,” said David Alicea, Sierra Club New York Field Manager. “Just last week, Massachusetts showed that utility regulators can stand up to gas utilities and protect utility customers by rejecting their false solutions like biogas and hybrid heating systems. In contrast, by punting most critical decisions, today’s decision stands to cost New Yorkers hundreds of millions of dollars in wasteful spending and jeopardize the health of our communities. We need the PSC and Governor Hochul to protect ratepayers and implement the CLCPA by putting a clear end to gas utilities’ business-as-usual practices.”
“After multiple rounds of input from community members, advocates, and researchers, we are pleased to see that the commission did not rubber-stamp a plan that would be both costly for customers and disastrous for the climate,” said Ben Kuebrich, Public Advocate for Alliance for a Green Economy. “At the same time, we are concerned that the order will allow National Fuel to further delay meaningful climate action. National Fuel’s long-term plan demonstrated their blatant disregard for the Climate Act, using a series of unsupported and biased assumptions in support of a plan that suited their financial interests. The PSC’s modifications rely on National Fuel to run pilots that test some of their assumptions, but robust oversight will be needed to ensure that National Fuel does not further corrupt the process. As we wait another three years for National Fuel’s updated long-term plan, millions may be spent on false solutions and unnecessary gas infrastructure. The PSC is not acting with the urgency required of this moment.”
"PUSH Buffalo is disappointed and dismayed by the Public Service Commission's lack of leadership in deciding today to order National Fuel Gas to implement, with modifications, the final long-term gas plan the company submitted earlier this year. PUSH spent the last several months canvassing marginalized communities and speaking with National Fuel customers in Buffalo to raise awareness about the various ways National Fuel's plan would undermine the Climate Law's emission reduction goals while wasting our money on maintaining a dirty and dangerous gas system. Hundreds of residents voiced their opposition to the long-term plan and signed public comment cards. Most described fears around the health and well-being of themselves and their loved ones and a desire to transform the energy system to be more just and equitable. Frontline communities in our region deserve bold, progressive leadership from state utility regulators and a check on the monopoly power of gas utilities like National Fuel," said Rev. Dr. Majadi Baruti, Climate Justice Organizer at PUSH Buffalo.
About the Sierra Club
The Sierra Club is America’s largest and most influential grassroots environmental organization, with millions of members and supporters. In addition to protecting every person's right to get outdoors and access the healing power of nature, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information, visit www.sierraclub.org.