New York regulators on Wednesday denied air permits for the Astoria and Danskammer Energy Center gas-fired generator projects, saying that the proposed facilities would not comply with the state’s climate law.

The projects “would be inconsistent with or would interfere with the statewide greenhouse gas emissions limits established in the Climate Leadership and Community Protection Act (CLCPA),” New York Department of Environmental Conservation Commissioner Basil Seggos said in a statement. Both developers “failed to demonstrate the need or justification” for their projects “notwithstanding this inconsistency,” he said.

The DEC issued draft air permits for both projects in July but asked for input on potential inconsistencies with the CLCPA.

Gov. Kathy Hochul applauded the decision.

“Climate change is the greatest challenge of our time, and we owe it to future generations to meet our nation-leading climate and emissions-reduction goals,” she said in a statement.

Danskammer Energy’s proposal sought to build a 536-MW natural gas-fired, combined cycle generation facility at the site of the existing 532-MW Danskammer Generating Station in Newburgh, N.Y. NRG Energy’s (NYSE:NRG) Astoria proposal included construction of a 437-MW simple cycle, dual-fuel peaking generator in Queens.

The department determined that the projects would be a new source of a “substantial amount” of direct and upstream GHG emissions, according to notices to Danskammer and NRG. In addition, the DEC said the projects would “constitute a new and long-term utilization of fossil fuels to produce electricity without a specific plan in place to comply with” the CLCPA.

As presented, the department said, the developers’ plans to meet the CLCPA’s requirement to be emission-free by 2040 are “uncertain and speculative in nature.”

NRG “simply assumes that, prior to 2040, the project will be able to utilize hydrogen, renewable natural gas or some other fuel that is considered zero-emissions under the climate act,” the DEC said, while Danskammer has not established the feasibility of using hydrogen or RNG from a supply or GHG emission perspective.

NRG is reviewing the state’s decision, according to Tom Atkins, vice president of development.

“It’s unfortunate that New York is turning down an opportunity to dramatically reduce pollution and strengthen reliable power for millions of New Yorkers at such a critical time,” Atkins said in a statement to NetZero Insider.

The Astoria project would have been fully convertible to green hydrogen in the future, according to Atkins.

“New Yorkers deserve both cleaner air and reliable energy to ensure the lights stay on for our small businesses, homes, schools and hospitals when they need it most,” he said. “That’s what this project would have delivered, and that’s what NRG had been fighting for along with labor leaders, the small business community and local Queens residents. We appreciate their support during this difficult process.”

The company, he said, is “deeply disappointed” in the department’s decision.

“NRG will continue to find ways to help New York achieve its emissions goals,” he said. “In the meantime, our current Astoria plant will continue to operate to help ensure the lights stay on in New York City, as that remains the most important thing.”

Danskammer Energy did not respond to a request for comment on the DEC’s decision.

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The DEC was “right to reject” the applications, Peter Iwanowicz, executive director of Environmental Advocates NY, said in a statement.

“This is a tremendous decision by DEC and another for the growing list of the Hochul administration’s actions that will provide clean air and a healthful environment for the 20 million people that call New York home,” he said.

The decision to deny the air permits “tees up similar outcomes” for other projects in the permitting process, such as the Gowanus repowering project in Brooklyn, Sierra Club said in a statement.

Astoria Generating, a wholly owned subsidiary of Eastern Generation, filed a plan with the New York Department of Public Service in 2018 to replace 32 oil and gas generating units at the 640-MW Gowanus facility with eight gas-powered units (Case 18-02956). Gowanus is sited on four floating barges moored in Gowanus Bay in Brooklyn.

“Gov. Hochul made clear that fracked gas power plants have no place in New York’s energy future, heeding the call of environmental justice and climate advocates and community members who organized tirelessly for this climate victory,” said Allison Considine, New York campaign representative with Sierra Club.

Given previous remarks by Seggos on the Danskammer project, the DEC’s decision was not surprising, according to a statement from State Sen. James Skoufis (D).

“I stand ready to partner with local communities, buildings trades and environmental stakeholders to put forward a project for the existing Danskammer site that both aligns with New York’s climate laws and serves the needs of our area,” he said.