Court orders New Jersey to reconsider OREC ruling

Spanish Market: Electricity, Emissions
18/08/14

New Jersey regulators must reconsider their decision to deny offshore renewable energy certificates (ORECs) to a 25MW project off the coast of Atlantic City.

The Appellate Division of the Superior Court of New Jersey said the state Board of Public Utilities (BPU) must reconsider the decision in light of a recent US Department of Energy grant to the Fishermen's Wind project.

The decision also requires the board to acknowledge that Fishermen's Energy proposed a price of $199.17/MWh, about $64 less than the price used by the agency to deny the ORECs, the company said today.

"This is a big win both for Fishermen's Energy and the state of New Jersey," company chief executive Chris Wissemann said.

The court decision was dated 8 August. Fishermen's Energy said it received the ruling late last week.

The board did not immediately respond to a request for comment.

The company took the board to court after the agency in April declined to reconsider the OREC decision. The board in March denied the company's application for ORECs on the grounds that the project would cost ratepayers too much. It said the company's OREC price of $263/MW was too high, while Fishermen's Energy said the ORECs would cost $199/MWh.

But the BPU said the lower price was dependent on the project receiving about $100mn in federal support, including a DOE grant and the investment tax credit, which expired last year.

DOE awarded $47mn to the project in May as part of a program to support offshore wind demonstration projects.

New Jersey's Offshore Wind Economic Development Act, which was enacted in 2010, requires the board to develop a program mandating that electricity suppliers buy ORECs to support 1,100MW of offshore wind projects.

The Fishermen's Energy project, which would be located offshore from Atlantic City, has already received most of its state and federal permits for construction. The OREC ruling is one of the last hurdles it needs to clear.

mb/ee

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02/06/26

UK government aims for GHG cuts of 87pc over 1990-2042

London, 2 June (Argus) — The UK government has set out plans for the country's seventh carbon budget, proposing a "science-led" greenhouse gas (GHG) emission reduction goal of 87pc in 2038-42, from 1990 levels, in line with advice from the independent advisory Climate Change Committee (CCC). Carbon budgets, which are legally-binding in the UK, cap the total GHG emissions that the UK can emit over five-year periods. The government has proposed a limit of 535mn t/CO2 equivalent (CO2e) in the 2038-42 period, including the UK's share of international aviation and shipping emissions, in line with the CCC's recommendation . This is "consistent with the Paris Agreement" and its most ambitious target to curb the global rise in temperature to 1.5°C above pre-industrial levels, the government said today. "Moving at pace to clean energy and net zero emissions is the best choice to reduce the exposure of UK families and businesses to more fossil fuel shocks", the government said. The net cost for the UK to reach net zero GHG emissions by 2050 is lower than "a single fossil fuel price shock", the CCC said in March . The government will publish a delivery plan, explaining how the seventh carbon budget will be met, "as soon as is reasonably practical after parliament has approved the budget", climate minister Katie White said today. The government highlighted recent moves to ramp up renewable energy and nuclear energy, to cut energy costs and improve energy security. The proposed seventh carbon budget "sends an economy-wide signal to investors and businesses, providing long-term certainty which will encourage investment and growth", White said. "The only way to protect family and business finances is to drive for clean homegrown power that we control", energy minister Ed Miliband said. The seventh carbon budget must be approved by both the upper and lower houses of UK parliament and set in law by the end of June. The UK has met its first three carbon budgets, reducing GHGs by 50pc over 1990-2022, largely through decarbonising the power sector and shutting down coal-fired power generation. The UK has a legally-binding target to reach net zero GHG emissions by 2050. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

US May factory activity quickens to 4-year high: ISM

01/06/26

US May factory activity quickens to 4-year high: ISM

Houston, 1 June (Argus) — US manufacturing activity expanded in May at the fastest pace in four years, with production and demand indicators growing, even as factory purchasing managers expressed concerns about the Iran war and rising prices. The manufacturing purchasing managers index rose to 54 in May, up from 52.7 in April and the highest since May 2022, the Institute for Supply Management (ISM) said in its latest survey results. Readings over 50 signal growth, while those below that level point to contraction. The new orders index rose to 56.8 in May, up from 54.1 in April, marking a fifth month of gains following four months of contraction. ISM said 25pc of respondents' comments were positive while 69pc were negative. The Iran war was mentioned in 42pc of comments and tariffs in 18pc. Price volatility was mentioned in 57pc of comments. "Despite the positive momentum for demand, sentiment remained dominated by the war in Iran," Oxford Economics said in a note on the ISM report. "The strait of Hormuz closure is driving up oil, fuel, and raw material costs, creating shipment delays and price hikes across industries." The production index rose by 0.9 to 54.3, ISM reported. The prices index slipped to 82.1, still in solid expansion. The employment index rose by 2.2 to 48.6, signaling a diminishing rate of contraction, with only half of respondents hiring. The supplier deliveries index was unchanged at 60.6 from April after rising in each of the prior five months. The unchanged reading marked continued slower deliveries, which is typical of improving economic activity and rising customer demand. Customers' inventories rose to 42.7 in May from 39.1, remaining "too low", according to ISM, which is considered a positive sign for future demand. The new export orders index rose by 2.7 points to 50.6, returning to growth, while the import index rose to 53 from 50.3. "Impact of Iran conflict starting to directly and negatively impact cost of supply chain," a transportation equipment survey respondent said. "Oil and related commodities are escalating in price." "The Middle East conflict is triggering shipment delays and uncertainties," a machinery respondent said. "Elevated gas prices and inflation will surely impact our purchases. However, over the last quarter, we've seen increased demand that was unexpected." By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

CARB adopts cap‑and‑invest changes: Update

30/05/26

CARB adopts cap‑and‑invest changes: Update

Updates with final vote and details throughout Houston, 29 May (Argus) — The California Air Resources Board (CARB) late Friday adopted amendments to the state's cap-and-invest program, though not without first reaching a compromise on the next steps for a contentious proposal to help industry reduce emissions. The 9–4 board vote begins the process of implementing the long-awaited changes to the program that sets a declining limit on greenhouse gas (GHG) emissions from sources like power plants and transportation fuels. The board approved its decision resolution after hours of debate, largely focused on a proposed decarbonization incentive program for industry, potential impacts on state revenues and the timeline for implementation. "When I was appointed chair, it was a few weeks after governor Gavin Newsom signed the cap-and-invest extension into law, and this was one of the items I was most looked forward to deliberating on," CARB chair Lauren Sanchez said. "Little did I know ... how difficult the trade-offs would be." One element that drew the most scrutiny was a CARB staff proposal to take 118.3mn metric tonnes of carbon allowances originally slated for removal and instead use them as industrial incentives under the proposed Manufacturing Decarbonization Investment (MDI) program. The MDI program was part of an updated amendments package staff released in April , which also proposed increasing allowance allocations to state utilities and industrial entities from the original January draft . At least four board members questioned whether the program would deliver guaranteed emissions reductions and they raised concerns about its potential impact on state revenues that fund emissions-reduction programs. "I'm looking not just for teeth, but bigger and sharper teeth in terms of making sure that this program does what it's supposed to do," former assembly member Miguel Santiago (D) said. However, removing the MDI program — or reverting to the agency's January proposal — would trigger additional regulatory requirements under state law, according to CARB deputy executive director Rajinder Sahota. Both options would require a new 15-day public comment period and could necessitate further analysis under the California Environmental Quality Act (CEQA) and other state laws. That extra time would make the agency's planned 1 September implementation deadline unattainable. If the board had decided to remove the MDI, the allocation levels for industry, utilities and auctions would have stayed consistent with the April proposal — meaning there would not be any increase to the proposed number of allowances for state auctions, Sahota said. However, reverting to the January version would cut free allocations to utilities and industrial sectors. "Which would result in impacts to utilities and industrial entities that they were very opposed to in the January proposal," CARB executive officer Steven Cliff said. Balacing politics, economics Staff have framed the April amendments as a response to mounting political and economic pressure, aimed at ensuring the cap-and-invest program delivers emissions reductions while reducing the risk of industries relocating to less-regulated states. Sanchez said she had some concerns with the proposal as well, but sought a compromise with members on language for the board's resolution that would allow for development of MDI guardrails. The final resolution directs staff to return to the board prior to issuing MDI allowances. That step will allow for additional analysis of board and public concerns and further deliberations, which could inform a future rulemaking for changes to MDI regulations, Sanchez said. Much of the day's debate focused on whether to move forward now to provide regulatory certainty and stabilize allowance values, or to take more time to evaluate the latest staff proposal, including the MDI program, and risk running out the one-year clock on finishing the rulemaking. Or, alternatively, take a path that straddles both options, and allows board members to retain authority over the design of the MDI. Despite the revisions to the resolution, four board members voted against the proposal, citing public concerns raised by speakers on Thursday about the MDI program and the limited ability to influence the final amendment package. "I don't think we should be backed into a corner and expected to vote ‘yes' on something we have serious reservations about and lots of unanswered questions about," board member Lynda Hopkins, a Sonoma County supervisor, said before casting her "no" vote. Ultimately, the measure passed not because of overwhelming support for the amendments, but due to concerns that further delays could undermine market certainty and disrupt industry planning if the agency had to start over. "I am going to support moving forward," said board member John Balmes, a professor of medicine at the University of California, San Francisco. "As much as I'd like to dump MDI — and, if it were up to me, I would." By Denise Cathey Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Ohio governor pauses data center tax breaks

29/05/26

Ohio governor pauses data center tax breaks

Houston, 29 May (Argus) — Ohio governor Mike DeWine (R) temporarily halted new data center tax exemptions after local media reports showed the incentives cost the state over $1bn in revenue last year . DeWine directed the tax credit authority to stop accepting new requests for exemptions while the legislature's Joint Data Center Committee examines the impact of data centers on local communities. The pause only applies to tax exemption requests and is not a ban on data center development, he said this week. The move is a reversal of sorts for the Republican governor who has been a supporter of data center investment and last year vetoed a legislative attempt to end the sales and use tax exemption, enacted in 2013. "What was estimated at $300 million in lost revenue is now $1.6 billion," state representative David Thomas (R) said on social media this week. "The legislature was not told of this cost until seeing it in the newspaper. I am strongly encouraging removing this sales tax exemption fully in Ohio Law." DeWine emphasized that data centers that have received tax exemptions reported more than $27bn in capital investment in Ohio last year. The tax credit pause comes as state and local governments in other high-growth markets take a more critical look at the rapid buildout of data centers. In neighboring Pennsylvania, governor Josh Shapiro (D) recently introduced Governor's Responsible Infrastructure Development (GRID) standards that tie tax incentives and fast-track permitting to stricter requirements on energy sourcing, grid costs and environmental performance. Opposition is also gaining strength in Texas, where counties and cities have moved to block or slow projects through moratoriums, zoning denials and new restrictions tied to water use and land use. The pushback, spanning both Republican- and Democratic-leaning areas, comes as regulators warn that data centers could drive electricity demand to more than quadruple in coming years. Ohio has the fifth-largest number of data centers in the country, with more than 200 facilities, according to the Office of the Ohio Consumers' Counsel. The rapid expansion has coincided with rising power costs, with Ohio households facing increases from 10-35pc last summer as regional grid operator, PJM Interconnection, paid dramatically more to secure future reserve capacity. By Jasmina Kelemen Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Local opposition builds to Texas data centers

28/05/26

Local opposition builds to Texas data centers

Houston, 28 May (Argus) — A wave of local efforts to slow or block data center projects is spreading across Texas, as communities push back against the rapid expansion of facilities expected to drive the state's next surge in electricity demand. Counties and cities have in recent months proposed or enacted moratoriums, denied zoning requests and imposed new restrictions, citing concerns over water use, grid strain, noise and the industrialization of rural areas. The local-level backlash has intensified since February, striking in even heavily Republican-leaning districts. Hill County, south of Dallas-Fort Worth, approved a moratorium targeting data centers and related infrastructure, prompting a lawsuit this week from developers seeking to invalidate the measure. Van Zandt County adopted a broader "green energy" moratorium, while similar proposals in Hays and Tom Green counties have been tabled following legal concerns. Hood County commissioners narrowly rejected a comparable measure. "You have counties adopting moratoriums over the objection of their own attorneys, who are saying they don't have the authority to do this," said Tina Nguyen, a litigation partner at Baker Botts, in a webinar Thursday. At the city level, San Marcos denied a rezoning request after hours of debate focused on water availability. Harlingen imposed a temporary ban on new applications, and San Angelo adopted new setback and noise requirements. Round Rock, by contrast, approved a project despite opposition. The opposition comes as Texas has become a leading hub for data center development tied to artificial intelligence, with regulators projecting electricity demand could more than quadruple by 2032. Texas currently has about 87 operating data centers and roughly 156 planned projects, positioning the state to overtake Virginia as the largest US data center market later this decade, according to industry figures presented by Baker Botts. Growing chorus of disapproval The local resistance is spilling into statewide politics and has begun to elicit rare bipartisan agreement in some corners. Texas Agriculture Commissioner Sid Miller recently called for a temporary statewide moratorium on new data center development, warning that the rapid growth of such facilities is straining the Lone Star State's resources. The three-term commissioner endorsed by President Donald Trump lost his Republican primary in March and will not stand for re-election. The Democratic challenger in the race has also advocated for a statewide moratorium. Legal experts suggest counties may lack the authority to impose broad development moratoriums, raising the likelihood of further court challenges. Developers are increasingly seeking injunctions to block enforcement, warning that even temporary delays can disrupt financing and timelines. Uncertainty created by the disputes could stymie project development as Texas regulators move to integrate a surge of large electricity users. Under a new process being finalized by the Electric Reliability Council of Texas (ERCOT), projects must certify they have secured all required local approvals or that none are needed to qualify for accelerated interconnection. "The problem is the rule doesn't distinguish between a lawful government action and an illegal one," said Juliana Sersen, a former ERCOT attorney and partner at Baker Botts. That dynamic could leave some projects unable to meet requirements if subject to local moratoriums, even if those restrictions are later overturned, she said. By Jasmina Kelemen Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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