Biden officials tout shaky NY offshore wind projects

POLITICO's must-read briefing informing the daily conversation among knowledgeable New Yorkers

Jul 07, 2023 View in browser   By Marie J. French, Joseph Spector and Hajah Bah Interior Secretary Deb Haaland in November 2021. | Susan Montoya Bryan/AP Photo Deb Haaland visited Albany to tout the "Bidenomics" benefits of offshore wind projects — even as the four in New York face major challenges in securing financing. On Thursday, President Joe Biden’s interior secretary joined Rep. Paul Tonko and the director of the Bureau of Ocean Energy Management for a press conference at an Albany offshore wind manufacturing project. Haaland highlighted the potential of the industry to create thousands of jobs in the state, and nationally. But developers of the four projects with New York contracts have said — due to higher-than-expected costs — they likely won’t move forward without bigger subsidies from ratepayers. The Port of Albany project toured by Haaland is an offshore wind tower manufacturing site for Norwegian energy company Equinor, which holds the majority of New York’s offshore wind contracts with an assist from BP. The project has had delays tied to permitting and lost out on some federal funds. The companies involved raised the alarm that cost increases from inflation required more subsidies late last year. Despite this, Haaland struck an upbeat tone Thursday. “Our country needs to move forward with offshore wind, and I believe the commitment I see from many people involved that we will get there,” she said. “The Inflation Reduction Act is a downpayment and we know we need to do more to move forward.” Haaland held a closed-press roundtable with local electeds, industry representatives and others before the media availability. John Williams, NYSERDA’s executive vice president for policy and regulatory affairs, participated in the discussion. “These are not issues New York State itself is going to be able to solve,” he told POLITICO. “We have to make sure we have all the systems set up to make sure … we don’t lose the opportunities the Inflation Reduction Act was intended to provide.” Williams said the near-term challenges facing the industry require a coordinated strategy with both federal and state involvement. “Seeing the Port of Expansion Project construction site firsthand reinforces the massive work going on,” said Richard Hendrick, the CEO of the Port of Albany in a statement. “The project is progressing in a phased approach to offset, but still moving forward in the face of a $350M funding gap.” Assemblymember Pat Fahy (D-Albany) said she personally raised concerns about funding for the Port of Albany project with the Interior secretary and Tonko at the roundtable event. “It's been a little bit of a rough road but everyone is hanging in there,” she said. “There’s a strong commitment that this is the future, and we have to make it work for all communities.” On the same day Haaland was highlighting New York’s role in the offshore wind industry, New Jersey Gov. Phil Murphy signed a bill boosting funding for investments in his state, declaring those ports the “foundation of our nation's entire wind industry.” HAPPY FRIDAY. WHERE’S KATHY? In Erie County with no public schedule. WHERE’S ERIC? In New York City with no public schedule. QUOTE OF THE DAY: “If Brad Lander decides to really go to war with the mayor, he can be so much more aggravating to him,” Democratic political strategist Chris Coffey told POLITICO’s Joe Anuta for this story about how the city comptroller has become Mayor Eric Adams’ archrival.   JOIN 7/11 FOR A TALK ON THE FAA’S FUTURE: Congress is making moves to pass the FAA Reauthorization Act, laying the groundwork for the FAA’s long-term agenda to modernize the aviation sector to meet the challenges of today and innovate for tomorrow. Join POLITICO on July 11 to discuss what will make it into the final reauthorization bill and examine how reauthorization will reshape FAA’s priorities and authorities. REGISTER HERE.     ABOVE THE FOLD HOUSING NUMBERS: The Adams administration is set to surpass its goal of creating or preserving at least 18,000 income-restricted homes in fiscal year 2023, according to city housing commissioner Adolfo Carrión Jr. The sum — which covers city-financed affordable housing production from last July through this past June — marks an increase from the roughly 16,000 affordable homes financed during fiscal year 2022. The total includes a massive deal to preserve affordability for nearly 2,500 rent-stabilized homes at the Flatbush Gardens complex in Brooklyn. “We set a goal this year to create and preserve at least 18,000 homes for New Yorkers at a time of desperate need for affordable housing,” Carrión said in a statement to POLITICO. “I’m happy to say we will exceed that goal.” The administration had lowered its production target from 25,000 units the prior fiscal year to 18,000 — amid economic headwinds that pushed up development costs, and staff shortages at the Department of Housing Preservation and Development that slowed financing deals. The department is currently tallying all the deals that closed in the last fiscal year and will release more details “in the coming weeks,” Carrión said. City-financed affordable housing production saw a 44 percent drop — from 29,388 homes to 16,428 — in fiscal year 2022, which included the first six months of Mayor Eric Adams’ term. Affordable housing production averaged about 25,000 units per year under former Mayor Bill de Blasio. — Janaki Chadha New York Attorney General Letitia James (D). | Spencer Platt/Getty Images ATTORNEY GENERAL FINDINGS: After years of questionable finances, the Association of Black, Puerto Rican, Hispanic and Asian Legislators will have to overhaul its finances. Attorney General Tish James on Thursday found it didn’t have proper governance and mishandled its scholarship program. The group won’t have to pay any fines, but James announced an agreement with the Association to resolve longstanding problems with its finances that centered around its annual caucus weekends in Albany. The Association, started in 1985 to help minority communities, didn’t have full-time employees or sufficient oversight, causing it "to suffer a breakdown in leadership and repeatedly file inaccurate financial audits and disclosures” to her office, James said. The group and its chairperson, Brooklyn Assemblymember Latrice Walker agreed to elect new directors to its board, adopt amended bylaws and formalize its scholarship program. — Joe Spector  WHAT CITY HALL IS READING The Mayor Had a Photo of a Fallen Officer. Was His Story About It True?, by The New York Times’ Emma G. Fitzsimmons: “[T]he weathered photo of Officer Venable had not actually spent decades in the mayor’s wallet. It had been created by employees in the mayor’s office in the days after Mr. Adams claimed to have been carrying it in his wallet. The employees were instructed to create a photo of Officer Venable, according to a person familiar with the request.” Plagued by staff shortage, NYC agency fails to make determinations in most discrimination cases, by The Gothamist’s Ishan Thakore Uber, DoorDash sue NYC over minimum-wage law, by Reuters’ Daniel Wiessner: “The companies filed separate complaints in New York state court claiming the law, which takes effect next week, is based on a misunderstanding of how the food delivery industry works. Relay Delivery also filed a lawsuit in the same court claiming the law will put the New York-based company out of business unless it raises the fees it charges to restaurants.” State and City Budgets Gamble on More Gains for the Very Richest, by THE CITY's Greg David WHAT ALBANY'S READING Hochul pumps brakes on legal weed sales at New York farmers’ markets, by New York Post’s Carl Campanile: "Marijuana farmers and sellers were hoping the Empire State would have drafted rules in time for the peak of the summer season — starting with the Fourth of July weekend, which is now in the rearview mirror." State comptroller to conduct forensic audit of Erie County Clerk's Office, by Buffalo News’ Sandra Tan Hochul: $500M in bridge and culvert funding heading to New York communities, by New York State Politics’ Nick Reisman: “‘New York’s infrastructure, especially at the local level, is among the oldest in the country, which makes investments like BRIDGE NY that harden our local infrastructure and invest in resiliency and sustainability so critically important to the Empire State's future,’ Department of Transportation Commissioner Marie Therese Dominguez said.” AROUND NEW YORK — New York received $670 million in federal funding to increase rural internet access. (Democrat and Chronicle) — A city bus collided with a tour bus in Manhattan, leaving at least 18 injured. (New York Daily News) — Inside the $100 billion bet that a postindustrial US city can reinvent itself as a high-tech hub. (MIT Technology Review)   SUBSCRIBE TO POWER SWITCH: The energy landscape is profoundly transforming. Power Switch is a daily newsletter that unlocks the most important stories driving the energy sector and the political forces shaping critical decisions about your energy future, from production to storage, distribution to consumption. Don’t miss out on Power Switch, your guide to the politics of energy transformation in America and around the world. SUBSCRIBE TODAY.     SOCIAL DATA BY DANIEL LIPPMAN HAPPY BIRTHDAY: Stuart Varney of Fox Business Network … Commerce’s Matt Hill … Marti Adams Baker … CNN’s Nia-Malika Henderson … Eleanor Clift … Randy James … The Messenger’s Sophie Tatum … (was Thursday): Jeffrey Gural ... Josh Lipson MEDIAWATCH — Jody Serrano is now a staff reporter on the tech team for The Messenger. She most recently was a reporter covering social media and online communities for Gizmodo. MAKING MOVES — Ryan Hughes has been named assistant VP at communications and marketing agency JConnelly. He most recently was senior manager at Hiltzik Strategies. Real Estate A New York Property Developer Explains Why Converting Offices to Apartments Is So Complex, by Bloomberg’s Isabel Webb Carey   Subscribe to the POLITICO Playbook family Playbook  |  Playbook PM  |  California Playbook  |  Florida Playbook  |  Illinois Playbook  |  Massachusetts Playbook  |  New Jersey Playbook  |  New York Playbook  |  Ottawa Playbook  |  Brussels Playbook  |  London Playbook View all our political and policy newsletters Follow us

To change your alert settings, please log in at https://www.politico.com/_login?base=https%3A%2F%2Fwww.politico.com/settings This email was sent to edwardlorilla1986.paxforex@blogger.com by: POLITICO, LLC 1000 Wilson Blvd. Arlington, VA, 22209, USA Please click here and follow the steps to unsubscribe.