October 6, 2008

Welcome to Environmental Advocates of New York’s online newsletter from the State Capital, your source for environmental news. We update you every other week with tidbits and observations carefully gleaned from the halls of the Capitol.

$3.07

Come January, that’s how much it will cost for a power plant to emit one ton of carbon dioxide pollution in any of the 10 states participating in the Regional Greenhouse Gas Initiative (RGGI).

A price of $3.07 per ton will generate as much as $200 million in new revenue for New York. Observers have called it the “goldilocks price.” Not too low to still provide an incentive for power plant owners to clean up their act. Not too low that it does not provide an incentive for power plant owners to clean up their act, not too high that it’s unlikely consumers will see much of difference in their bills.

Decisions now have to be made about how this money should best be used and we’ve got an idea. Investments in clean energy and efficiency will give the state the biggest bang for our RGGI buck while further reducing our contribution to this global problem.

Back on Thursday, September 25th, the governors of the 10 states participating in the RGGI met at the New York Mercantile Exchange to ring in the first auction of carbon dioxide emissions. And every last pollution allowance, or “carbon credit,” found a buyer. However, although New York has nearly finalized the rules and regulations to govern the state’s participation in the RGGI, a critical question remains unanswered—what will happen to auction revenues?

So far, the plan is to make a plan. That’s just not good enough for us.

There may be good explanation as to why the state agencies in the RGGI driver’s seat—the Department of Environmental Conservation (DEC) and the New York State Energy Research & Development Authority (NYSERDA)—have advanced only a vague description or two about where the auction proceeds will go. It wouldn’t be responsible for officials to start spending dollars they don’t have. New York won’t see any revenue until the next RGGI auction in December.

It’s also hard to know what to do until decision makers have a better sense of how much they’ll have to spend. While the current market price suggests that carbon credit sales will raise nearly $200 million per year, that figure could go higher or lower based on market conditions. Until decision makers have some better data on carbon credit price trends, caution is in order.

That being said, it would be far too easy for budgeteers to use this money to fill a rapidly growing crevasse in the state budget. If put to best use, RGGI auction revenues will save New Yorkers money while reducing energy use and power plant pollution.

And we’re not the only ones who feel that way. Click here to read an editorial in the New York Times and here to read an editorial in New York Newsday.

More Wind Power on the New York Energy Horizon

The New York Independent System Operator (NYISO) has introduced system and operating changes to better utilize   the state’s existing wind resources and pave the way for more clean, renewable power resources.

The changes will enhance power forecasting and help accommodate the variable nature of wind-powered generation, which has long been a challenge for the industry.

NYISO is one of the first in the country to implement such a forecasting method.

As of September 1, there were more than 700 megawatts of wind generating capacity in commercial operation in New York State. Wind capacity in New York is projected to grow to more than 1,200 MW by the summer of 2009. Proposed projects adding another 6,500 MW of wind capacity to be developed by 2011 are proceeding through the grid interconnection study process administered by NYISO.

Save the Date for the 2008 Advocate Awards

Join Environmental Advocates of New York in celebrating the state’s conservation heroes at the 2008 Advocates Awards on Tuesday, November 11^th in New York City. Click here for details.

Return of the Budgeteers

Governor David Paterson recently announced that he plans to call state lawmakers back to Albany for another round of blood letting/budget cutting on November 18.

With now 10 percent across-the-board cuts in place at state agencies, many cringe at the thought of what may happen next. In terms of the Department of Environmental Conservation (DEC), such cuts will only further endanger the health of our natural resources and mean fewer engineers, inspectors, scientists and other staff to oversee critical functions such as air and water quality monitoring.

The scary thing is that without the inspectors needed to enforce water pollution programs, we may not know what’s in the water until it’s too late. We’ll let you know just as soon as the details of “special session II” are confirmed.

Great Lakes Compact Signed into Law

President Bush signed the Great Lakes-St. Lawrence River Basin Water Resources Compact on Friday, the final step in a decade-long effort to protect the world’s largest freshwater source.

The signing of this bill puts into law an agreement among the eight states and two Canadian provinces surrounding the Great Lakes to regulate the use the lakes’ water.

After each state passed the Compact, the measure headed to Congress in June, where the U.S. Senate passed it in August, and the U.S. House of Representatives passed it last month.

Statewide Energy Bike Tour Coming Soon

As part of Energy Awareness Month, the New York Public Interest Research Group (NYPIRG), Environmental Advocates of New York and other environmental and civic organizations are organizing a bike tour and events across New York State to raise awareness about the need to take action against global warming. The events will be held between October 17th and the 25th at locations across the state.  At each event, we will hold a news conference and rally calling on federal and state legislative candidates to embrace a “clean energy agenda,” including at least an 80 percent reduction in greenhouse gas emissions by 2050, embracing clean energy sources such as wind and solar power, and increasing efforts toward energy efficiency and conservation. Look for Information about an event near you in Environmental Advocates’ next newsletter. If you are part of an organization that would like to endorse the tour, please email cleanenergytour@gmail.com.