Proposed NYS Clean Energy Standards

Note:  The deadline for public comment to the NYS Public Service Commission on the CES is June 6.  There are public hearings on the CES on May 27 in Kingston and May 31 in Manhattan.

 

Last summer, when Governor Cuomo issued the final Clean Energy Standards, the public had a look at how green the State’s goals are. It sets three significant goals for the year 2030.

 

 

In December, Governor Cuomo called for the New York Public Service Commission to establish a Clean Energy Standard to ensure that the 50% renewable energy and 40% Green House Gas emissions reduction targets would be achieved. 

 

The 50% renewable energy mandate establishes New York as a national leader in the fight against climate change by significantly reducing the State’s emissions of greenhouse gas emissions and other pollutants, and improving the health of New Yorkers. Increasing New York’s renewables will also create new industries and jobs and bring billions of dollars of direct economic investment right here in New York State. Renewable development also promotes fuel diversity, protects ratepayers from volatile gas prices, and creates energy security and independence for New York residents. 

 

Last January, the Public Service Commission released a White Paper for development and implementation of the Clean Energy Standard. (Case 15-E-0302). This includes scheduling technical conferences in March, and public hearings across the State in April.  

 

The Clean Energy Standard’s White Paper currently consists of three tiers: Tier 1 is dedicated to new renewable energy sources, Tier 2 is designed to maintain existing renewable energy sources, and Tier 3 is intended to provide temporary subsidies to the nuclear industry with the purpose of maintaining these resources while New York’s renewables continue to develop. It is important to note that the White Paper does not count nuclear energy as a renewable source in the Clean Energy Standards and consequently it will not be included in the calculation of the 50% renewable energy target by 2030.  

 

The Atlantic Chapter, and a number of other environmental groups, are delivering comments and calling for our members to participate in the April and May public hearings. Our highest priority is to make sure that the 50% goal is achieved  and that there are strong measures adopted to ensure that there are enforcement mechanisms that require the utilities and the State to achieve the 50% target.  Consequently the Atlantic Chapter supports Alternative Compliance Payments where utilities would be charged for failing to meet annual renewable targets. Alternative Compliance Payment funds would then be used to procure more renewable generation or to reduce the soft costs of renewable development, such as siting and permitting issues. 

 

Additionally, the Chapter is calling for a separate offshore wind tier within the Clean Energy Standard as an incentive for the development of this enormous yet untapped renewable resource. Offshore wind development will establish New York as a regional hub, creating thousands of jobs and billions of dollars of economic investment, as well as being the only large-scale renewable resource in close proximity to New York City and Long Island where the energy is needed most. Deploying offshore wind will be necessary to ensure that the State meets the 50% target as well as New York City’s goal to power 100% of the city’s operations with renewable energy by 2030. 

 

The Atlantic Chapter is also asking that energy efficiency targets be set for the utilities in order to further bring the cost of the program down.  

 

To be sure of a strong start for the Clean Energy Standard, the Atlantic Chapter and its allies recommend strong initial targets to create incentives for the marketplace, and take advantage of the expiring federal Production Tax Credit and Investment Tax Credit. For maximum economic benefit for New York State, all investments should stay in New York and not rely on electricity produced by Canadian hydro dams.  We also support the use of long-term Power Purchase Agreements as the best contracting mechanism for minimizing costs while also demonstrating to renewable developers New York’s commitment to its 2030 goals.  

 

Concerning the nuclear Tier 3, the Sierra Club strongly opposes a nuclear tier under the banner of the Clean Energy Standard.  Nuclear energy is not clean, nor is it renewable.  The, Clean Energy Standard should not include funds that would otherwise be used to develop renewable energy. 

 

The Atlantic Chapter calls on our members to speak out during comment periods and at public hearings in favor of the importance of renewable energy goals for the State. Click here for suggested written comments and talking points for the scheduled hearings in April/May.