Energy - New York State

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1 Energy - New York State Overview U.S. federal vs. state policy legal and constitutional framework Energy and environmental regulation in New York New York State energy picture Renewable energy goals Renewable energy hydroelectric wind biomass solar Benefits and trade-offs

2 The role of federal vs. state governments in energy policy: U.S. division of authority states generally more powerful than federal government in determining terms of access to energy for their citizens. Federal government has supremacy for interstate commerce and international affairs; federal lands management States play major role in environmental standards, land use, and business regulation Compare Canada, Australia, Mexico, Great Britain, France Examples/Issues: LA Department of Water and Power established 1902 and engaged in electricity distribution in U.S. federal electricity law left in place extensive state regulation of the energy sector Offshore drilling controversy states like California have banned offshore drilling; others permit it Kyoto Protocol some states have developed aggressive carbon dioxide emissions reductions goals Electricity prices in Massachusetts almost twice as high as in Arizona A rizona major pricing differences occur from region to region in North America Series of North American electricity blackouts, culminating in Ohio Ohio problem leading to August 2003 crisis affecting 50 million people and causing $6 billion in economic losses California s s severe energy crisis; Alaskan natural gas pipeline uncertainties; ies; safety and security of LNG facilities

3 New York State: Resources and Consumption (EIA Summary) New York has minor reserves of oil and gas, found primarily in the far western part of the State approaching Lake Erie. Although New York s fossil fuel resources are limited, the State possesses considerable renewable energy potential. Several powerful rivers, including the Niagara and the Hudson, provide New York with some of the greatest hydropower resources in the Nation, and New York s Catskill and Adirondack Mountains offer substantial wind power potential. Parts of New York are densely forested, allowing for potential fuelwood (biomass) harvesting. Abandoned and marginal farmland provides potential for increased bioenergy production Although New York s total energy consumption is among the highest in the United States, energy intensity and per capita energy consumption are among the lowest, due in part to the region s widely used mass transportation systems. The commercial and residential sectors lead State energy demand, while the transportation sector is also a major consumer

4 New York Quick Facts The New York Harbor area between New York and New Jersey has a petroleum bulk terminal storage capacity of over 75 million barrels, making it the largest petroleum product hub in the Northeast. New York produces more hydroelectric power than any other State east of the Rocky Mountains. The 2,353-megawatt Robert Moses Niagara plant, harnessing power from the Niagara River, is one of the largest hydroelectric facilities in the world. Per capita energy consumption in New York is among the lowest in the Nation due in part to its widely used mass transportation systems. During the Northeast Blackout of August 2003, almost the entire State lost power and all four of New York's nuclear plants were shut down. A proposed pipeline could transport up to 10 million gallons of ethanol per day from production facilities in the Midwest to terminals in the Northeast, including New York Harbor.

5 New York State Energy Agencies Public Service Commission: The Department of Public Service has a broad mandate to ensure that all New Yorkers have access to reliable and low-cost utility services. The Department is the staff arm of the Public Service Commission. The Commission regulates the state's electric, gas, steam, telecommunications,and water utilities. The Commission also oversees the cable industry. The Commission is charged by law with responsibility for setting rates and ensuring that adequate service is provided by New York's utilities. In addition, the Commission exercises jurisdiction over the siting of major gas and electric transmission facilities and has responsibility for ensuring the safety of natural gas and liquid petroleum pipelines. New York State Department of Environmental Conservation: "To conserve, improve and protect New York's natural resources and environment and to prevent, abate and control water, land and air pollution, in order to enhance the health, safety and welfare of the people of the state and their overall economic and social well-being." DEC's goal is to achieve this mission through the simultaneous pursuit of environmental quality, public health, economic prosperity and social well-being, including environmental justice and the empowerment of individuals to participate in environmental decisions that affect their lives. New York State Energy Research and Development Authority: Use innovation and technology to solve some of New York's most difficult energy and environmental problems in ways that improve the State's economy. We place a premium on objective analysis, as well as collaboration, reaching out to solicit multiple perspectives and share information. We are committed to public service, striving to be a model of what taxpayers want their government to be: effective, flexible, responsive, and efficient. New York State Power Authority: We're the country's largest state-owned, nonprofit power organization, producing some of the cheapest electricity in North America. Our 18 generating facilities and over 1,400 circuit-miles of transmission lines produce the power to help sustain more than 400,000 jobs statewide. We are a national leader in promoting energy efficiency and the use of renewable-fuel and clean-energy technologies. Public Utility Corporations:

6 New York State Energy Plan New Yorkers continue to face numerous serious energy and environmental challenges that impact all facets of their lives. Issues of major concern include high energy costs, continuing reliance on imported fuels, aging energy infrastructure, and climate change. In March 2008, Governor David A. Paterson issued Executive Order 2 directing the creation of a State Energy Plan stating that "...the development, implementation, and periodic review of a sensible comprehensive energy plan will enable the State to determine its future energy needs and facilitate a deliberate, efficient, and cost-effective means of meeting those needs." To create the new State Energy Plan, the Governor convened the State Energy Planning Board to conduct the planning process,which will culminate in recommendations that, when implemented, will keep New York at the forefront among the states in providing its residents with reliable, economical, and clean energy resources. Draft 2009 State Energy Plan: Objectives and Strategies Assessments Energy Efficiency Assessment Renewable Energy Assessment Electricity Assessment Resources and Markets Modeling Natural Gas Assessment Petroleum Assessment Coal Assessment Energy Demand and Price Forecasts Issue Briefs Energy Infrastructure Siting New Energy Infrastructure Energy Costs and Economic Development Health, Energy Production and Energy Use Environmental Justice Transportation Climate Change Environmental Impact and Regulation of Energy Systems Regional Collaboration Supporting Documents Electricity Modeling Assumptions Electricity Modeling Output Files Natural Gas Modeling Results GHG Emissions Inventory and Forecasts Electric System Reliability Analysis Energy Price and Demand Annual Long-Term Forecast

7 New York State Renewable Energy Portfolio Standard A Renewable Portfolio Standard (RPS) is a policy that seeks to increase the proportion of renewable electricity used by retail customers. New York State s goal is to reach 25% by NYSERDA is responsible for getting to 24% of the ultimate 25% goal. The remaining 1% is expected to come from individuals and businesses who choose to pay a premium on their electricity bill to support renewable energy.

8 Hydroelectric Power Benefits and Environmental Tradeoffs Benefits High Capacity Factor Minimal or no carbon emissions during operation Water supply, flood control, navigation, recreation Industrial development Pump-storage adds capacity for peak loads Environmental Tradeoffs Ecosystem impacts Discharge patterns altered Coldwater discharge fish habitat Spawning of anadromous fish Flooding of forest and wetlands Changes in water chemistry Wetlands methane emission Carbon dioxide emission cement Earthquakes Economic impacts Loss of farmland Industrial concentration Cultural Impacts Loss of residences

9 Niagara St. Lawrence Raquette Sacandaga

10 Sacandaga Reservoir Scandaga River dam at Conklinville, NY Flood control on lower Hudson Water supply for navigation Electric power generation Three villages flooded; 1500 residents displaced Loss of farmland Gooley Dam on upper Hudson Gorge was proposed in 1960 s never completed

11 Gooley Dam Controversy, 1969

12 Raquette River Development 1956 Dams form 6 impoundments Electric power generation Significant impact on local tax base Employment Recreation Flood Control Loss of coldwater habitat Loss of wild/scenic river

13 Moses-Saunders Power Dam St. Lawrence River - Massena-Cornwall Power generation aluminum smelting Navigation St. Lawrence Seaway Industrial concentration fluoride pollution Native American community nearby Flooding of island farmland 600 residents Fish spawning migration

14 Niagara River Power Development Robert Moses Power Plant 2300 MW among largest in world Pump storage provides peak capacity Industrial development Industrial concentration Impact on tourism

15 A Renewable Portfolio Standard (RPS) is a policy that seeks to increase the proportion of renewable electricity used by retail customers. New York State s goal is to reach 25% by NYSERDA is responsible for getting to 24% of the ultimate 25% goal. The remaining 1% is expected to come from individuals and businesses who choose to pay a premium on their electricity bill to support renewable energy

16 Wind Power Benefits and Environmental Tradeoffs Benefits Minimal or no carbon emissions during operation Land use impacts minimal Positive impact on local economy Ecotourism Environmental Tradeoffs Ecosystem impacts Birds and bats Minor loss of agricultural land Shadow flicker Noise Economic impacts Viewscape property values Low capacity factor Cultural Impacts

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26 Maple Ridge Australia Impacts - noise Shadow Flicker

27 Woody Biomass Benefits and Environmental Tradeoffs Benefits: Can be carbon neutral High capacity factor in thermal steam electric systems Use of waste byproducts from agriculture or forest products industry Small business suppliers in forest products industries Conversion of marginal or abandoned farmlands for cropped biomass Farm income new product market Infrastructure and feedstock for biofuels (awaiting technology for cellulosic ethanol) Environmental Tradeoffs: Ecosystem impacts Forest systems degraded if non-sustainable practices used Erosion, lost of habitat Economic impacts Could compete for fiber and timber, raising prices for other products

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40 Solar (in New York??) Benefits and Environmental Tradeoffs Benefits: Carbon neutral Use of roof space so minimal land use in urban areas Minimal environmental concerns with careful manufacturing Passive solar thermal systems Environmental Tradeoffs: Ecosystem impacts Land use Competition with agricultural land Economic impacts Low capacity factor Non-competitive cost

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42 ...but cost still hovers around $0.30 per kwh with low capacity factpor

43 NYPA's 100-MW Solar PV Initiative Solar Energy for Your Schools, Government Buildings and Municipal Facilities This an exciting time for clean energy in New York! Governor Paterson has established an ambitious 45x15 goal that calls for 45% of New York s electricity to come from energy efficiency and renewable resources by In support of the Governor s goals, NYPA is launching a 100 MW Solar PV Initiative that will result in hundreds of schools, government buildings and municipal facilities throughout New York State going solar at no upfront cost of their own. As part of the Initiative, NYPA is inviting public and private schools, government buildings and businesses throughout the state to serve as Host Sites for a roof- or groundmounted solar photovoltaic (PV) array. The solar array will be installed at no upfront cost to the facility, and will provide participating facilities with fixed-price solar energy for 20 years along with protection from future energy price increases. The solar array installation will supply electricity to the facility throughout the year; when not needed, excess solar power may flow to the surrounding community through the local utility meter. The local utility will deduct this excess energy from the facility's electric bill, making the Initiative a win-win for both the facility and the community! As an additional benefit, the solar array offers exciting educational opportunities in a variety of subject areas as students and community members learn about the importance of clean, renewable energy alternatives. Performance of the solar array will be measured and documented on a centralized website - providing excellent educational opportunities for students, educators and the general public.

44 Costs of electricity Wind 8 cents per KWH Photovoltaics 30 cents per KWH Biomass 7 cents per KWH Landfill gas - 7 cents per KWH Geothermal 8 cents per KWH Small hydro 8 cents per KWH Tidal - 12 cents per KWH Nuclear 8 cents per KWH Coal 4.5 cents per KWH