by Bob Ciesielski
New York’s energy future is being reshaped by the Public Service Commission’s proposed Reforming the Energy Vision (REV) plan. Additionally, NYSERDA, which has up to now been responsible for the state’s renewable energy and energy efficiency development, is also asking for comments to its Clean Energy Fund (CEF) proposal.
The Chapter and the Beyond Coal Campaign submitted comments about the CEF on December 8. Both the REV and CEF propose a transition to a market-based model for the development of renewable energy and energy efficiency.
The Sierra Club applauds NYSERDA’s proposed 10-year, $5 billion commitment to New York’s clean energy economy and its call for a “significant reduction in greenhouse gas (GHG) emissions from New York’s energy sector” in its CEF proposal. However, a number of concerns have been addressed by the Sierra Club in its most recent CEF submission:
■ New York should adopt enforceable 50% renewable energy and 20% energy efficiency targets by 2025, including interim goals. The current Renewable Portfolio Standard (RPS) calls for 30% of the state’s energy to be supplied by renewable sources but will expire at the end of 2015.
This voluntary program will not reach its 2015 goal. If a market-based model handled by private utilities is to replace the RPS, there must be enforceable goals, including penalties, should the utilities fail to meet renewable energy installation goals.
■ Neither the REV nor the CEF have addressed the large-scale development of renewables essential to achieving New York’s greenhouse reduction goals. NYSERDA has not budgeted any of its CEF resources for renewable energy development beyond 2015.
The Sierra Club is calling for a separate fast-track proceeding to determine the near-term future of large-scale renewable development.
At this point, the costs of solar and wind energy are competitive with fossil fuels and nuclear sources. However, if a solicitation procedure for installing renewables is not implemented, renewable energy in New York will be hampered. The state should provide for flexible contracting policies for renewables, along with 20-year contracts to ensure market stability.
One flexible contracting mechanism successfully used on Long Island is the feed-in-tariff (FIT), which permits renewable energy production by homeowners, small businesses, multi-unit buildings, farmers, industrial units, and utilities.
■ It is important to define the term “clean energy.” The CEF proposal interchanges the terminology for reducing greenhouse gases (GHG) with language concerning the reduction of carbon (CO2) emissions. The discussion sidesteps the effects of the extremely potent GHG methane on climate change. Methane is at least 86 times more potent a GHG than CO2 in the first 20 years of its release into the atmosphere.
We are concerned that the fracking gas industry will use this confusion of language to claim that it is reducing GHG merely because methane combustion releases somewhat less CO2 than other fossil fuels.
“Clean energy” should therefore be defined as that provided by solar, wind, small-scale hydro, and heat-transfer geothermal. All fossil fuels, especially methane gas derived from fracking, and also nuclear sourced energy, should not be considered “clean” energy. The use of the CEF to subsidize the further use of fossil fuels, especially the development of a methane gas infrastructure, would be completely contrary to the goal of reduced GHG emissions.
■ NYSERDA is recommending a phaseout of the systems benefit charge (SBC) on utility bills, which currently funds the state’s renewable energy and energy efficiency programs. The Atlantic Chapter is requesting that current funding levels be maintained.
We are also requesting that clean energy funds be earmarked solely for renewable energy development and energy efficiency, and not be arbitrarily transferred to the state’s newly formed Green Bank. Performance objectives for the development of renewable energy and efficiency by the Green Bank should be set and measured before further monetary transfers from the CEF are made.
■ The Sierra Club supports NYSERDA’s proposal to fully fund NYSun. The proposed solar manufacturing facility at Riverbend in Buffalo, recently announced by Governor Cuomo and funded by $750 million in state funds, has resulted in an additional $5 billion of investments by the solar manufacturer, and the prospect of 3,000 jobs in the Buffalo area.
■ We urge approval of the Deepwater wind farm proposed off of Montauk, which would supply some 200 MW of renewable energy to eastern Long Island. NYSERDA expects to release another amended version of the CEF in February, with additional public comments to be made in March.
Bob Ciesielski, a member of the Niagara Group, chairs the Chapter’s energy committee.