September 20, 2005
ENVIRONMENTAL ADVOCATES OF NEW YORK
NEW YORK PUBLIC INTEREST RESEARCH GROUP
SIERRA CLUB ATLANTIC CHAPTER

New York’s Leaders Should Offer Real Energy Solutions
Investing in efficiency saves consumers money and prevents pollution; Repealing the gas tax doesn’t guarantee savings.

Albany, NY — Calling Senate proposals in the face of high gasoline prices and projected heating costs a “mixed bag”, environmental groups suggest solutions that wisely invest in efficiency measures that save consumers money and reduce air pollution. Current air pollution levels prevent millions of New Yorkers from breathing healthy air in the 30 counties that continue to fail U.S. EPA clean air standards.

Christine Vanderlan of Environmental Advocates stated, “Efficiency and conservation measures save money and avoid pollution. It is important to offer temporary relief from high prices, but these measures don’t solve the root cause of high energy bills.”

“If there is a tax windfall from the gasoline price spike,” states John Stouffer of the Sierra Club Atlantic Chapter, “it should be used to help State residents realize permanent reductions in their energy costs by using energy more efficiently in home heating, lighting and appliances.”

“Rolling back the state sales tax on gasoline will not help consumers,” said Jason K. Babbie of NYPIRG, “New Yorkers need real solutions to drive the price of fuels down like renewables, energy efficiency and conservation.”

Legislation recently introduced in the Senate is a mixed bag, including some positive concepts and other measures that tend to provide tax relief without addressing the fundamental causes of high energy prices.

Thumbs Down: One proposal would give a bigger tax break to hybrid S.U.V.s than to vehicles that are much more fuel efficient, such as the Toyota Prius. If the goal is to encourage fuel economy, this measure falls far short. New York has a tax credit for alternative fueled vehicles that could be extended or otherwise improved, but this approach is backtracking.

Thumbs Down: Production tax credits for ethanol and biodiesel are not targeted to the most efficient and beneficial fuels. Ethanol from corn may require more energy to produce than the fuel provides, a net loss for efficiency. The measure should specify increased production of the alternative fuel and be limited to cellulosic ethanol to make this more than a corporate giveaway.

Thumbs Down: The proposal to backdate the tax credit for fuel cell electric generating equipment, passed earlier this year, is a waste of taxpayer money. Any new purchase of this efficient technology is already covered by the current credit.

Thumbs Down: Repealing the gas tax doesn’t necessarily guarantee savings at the pump and doesn’t address the root causes of dramatic price spikes.

Thumbs Up: Tax-free weeks for energy efficient appliances is the type of measure that can educate the public and encourage actions to increase efficiency. We support this solution.

Thumbs Up: Refundable personal income tax credits for upgrades to home heating systems, also included in S.5972, can be a powerful incentive to increase efficiency and is a measure we support.

Many excellent policies to reduce both costs and pollution have been left out of the Senate proposals:

Thumbs Up:

• Require state procurement of transportation fleets to use energy efficient vehicles or cleaner fuels.
• Supplement federal grants for New York residents that are eligible for the low income Home Energy Assistance Program (HEAP).
• Expand efficiency services available to New York State residents and make higher efficiency products more widely available.
• Create an energy efficiency program for customers of natural gas utilities similar to that available for customers of electric utilities.
• Require that replacement tires for vehicles are labeled with their efficiency rating and that these tires achieve the efficiency ratings of new tires.
• Increase incentives for development of alternative fuels and sources of electric generation.
• Expand the percentage of an electric utility’s demand that they are required to accept in net metering agreements.
• Expand net metering eligibility to both residential and commercial wind installations and fuel cells.
• Provide support for refining, storage and applications for bio-diesel.