John Williams

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Update on New York States Legal Efforts to
Address Climate Change in 2009
John Williams Director, Energy Analysis NYSERDA
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• Climate science tells us what we need to
  accomplish
• Reduce GHG emissions by at least 80 percent from
  1990 levels by 2050

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• Proposed Legislation
• A.7572 (Sweeney)/ S.4315 (Thompson)
• Global Warming Pollution Control Act
• References 80 by 50 recommendation of IPCC
• Creates incremental schedule for reductions
• 20 by 20
• 30 by 25
• 40 by 30
• 80 by 50
• Compatibility with existing programs
• Adaptation Strategies

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• Proposed Legislation
• A.6321 (Sweeney)/ S.2764 (Thompson)
• Climate Change Solutions Program Act
• Recognizes extant cap-and-trade program
• Directs funds from auction proceeds
• Greenhouse Gas Emissions Reduction Program
• Energy Efficiency Program
• Renewable Energy Program
• Clean Air Technology Program
• A.7017 (Gianaris)
• Climate Change Solutions Fund

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• Proposed Legislation
• A.249 (Magnarelli)/ S.4917 (Thompson)
• Greenhouse Gases Management RD Act
• A.3419 (Sweeney)/ S. 5689 (Thompson)
• State agency reporting on GHG emissions
• Various program bills
• Smart Growth, CCS pilot, Energy
  Efficiency/Renewable Energy, Municipal Loans,
  etc.
• A.5877B (Cahill)/ S.2501B (Parker)
• Article 6 Energy Law Energy Planning
• Chapter 433

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NYS Commitment

• Policies
• Executive Order 24 (Climate Action Plan)
• Executive Order 2 (State Energy Plan)
• Clean Energy Policy (45 by 15)
• Programs
• Regional Greenhouse Gas Initiative (RGGI)
• Renewable Portfolio Standard (RPS)
• Efficiency Programs (SBC, EEPS)

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Governor Patersons Executive Order 24

• Establishes 80 by 50 Goal
• Creates a Climate Action Council
• 13 State Agencies 2 Executive Chamber
• Directs Council to prepare a Climate Action Plan
• Draft Plan prepared by September 30, 2010
• Greenhouse Gas Inventory
• Mitigation and Adaptation strategies across all
  economic sectors, including industry,
  transportation, agriculture, building
  construction and energy production
• Life-cycle Analyses of activities on public and
  private sectors
• Recommend and advise on legal/regulatory/policy
  issues

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Governor Patersons Executive Order 2

• Creates an Energy Planning Board
• 9 State Agencies 2 Executive Chamber
• Directs Board to prepare a State Energy Plan
• Draft Plan August 10, Comments October 19,
  Final Plan end of 2009
• 10-year forecasts of supply/demand for
  electricity, natural gas, coal, petroleum
• Public health and environmental impacts
• Greenhouse Gas Inventory
• All agencies shall, unless otherwise restricted
  by applicable law, give due consideration to and
  be guided by the Energy Plan in their
  decision-making

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Total Greenhouse Gas Emissions for New York, 2007
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CO2 from Fuel Combustion by End Use Sector, 2007
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Draft New York State Energy Plan

• 5 Policy Objectives
• Assure reliable energy and transportation systems
• Support energy and transportation systems that
  significantly reduce greenhouse gas emissions
• Address affordability and improve economic
  competitiveness
• Reduce health and environmental risks of energy
  production and use
• Improve energy independence and fuel diversity

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Draft New York State Energy Plan

• 5 Key Strategies to achieving Energy Plan
  objectives
• Produce, deliver and use energy more efficiently
• Support development of in-state energy supplies
  (renewable resources)
• Invest in energy and transportation
  infrastructure
• Stimulate innovation in the clean energy economy
• Engage others in achieving the States policy
  objectives

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Clean Energy Policy

• 45 by 15 Goal
• 15 x 15 -- Reduce electricity consumption 15
  below projected by 2015
• 30 x 15 -- Thirty percent of electricity sold in
  NYS will come from qualifying renewable energy
  sources by 2015
• Summing up to
• 45 x 15 Goal -- Initiative to meet 45 of NYS
  electricity needs through improved energy
  efficiency and clean renewable energy by 2015

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Energy Climate Programs

• NYS Programs Focusing on Energy and Climate
• Regional Greenhouse Gas Initiative (RGGI)
• CO2 Budget Trading Program (Part 252)
• CO2 Allowance Auction Program (Part 507)
• Renewable Portfolio Standard (RPS)
• Energy Efficiency Programs (SBC, EEPS)
• System Benefits Charge
• Energy Efficiency Portfolio Standard

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Regional Greenhouse Gas Initiative (RGGI)

• 10 state agreement
• Cap and reduce carbon emissions
• Focus on power sector
• Distribute allowances via auction
• Invest proceeds in EE, renewable energy and
  other consumer benefits

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CO2 Budget Trading Program6 NYCRR Part 242

• Started January 1, 2009
• Regional cap 188 million tons CO2 per year
• New York budget 64.3 million tons
• Stabilize through 2014
• Reduce 10 by 2018

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CO2 Budget Trading Program6 NYCRR Part 242

• Three-year compliance periods
• Compliance obligation at end of period
• Banking of allowances allowed
• Offsets can be used for up to 3.3 of compliance
• Some set-asides (e.g. voluntary renewables, long
  term contracts)

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CO2 Allowance Auction Program 21 NYCRR Part 507

• Energy Efficiency and Clean Energy Technology
  Account
• Auction Eligibility and Participation
  Requirements
• Notice Requirements
• Auction and Secondary Market Monitoring
• Investigate potential for collusion, market power
  and/or price manipulation

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CO2 Allowance Auction Program 21 NYCRR Part 507
Part 507.4(d)) states that proceeds from the sale
of allowances will be used to . . . promote
and implement programs for energy efficiency,
renewable or non-carbon emitting technologies,
and innovative carbon emissions abatement
technologies with significant carbon reduction
potential. Part 507.4(e) requires NYSERDA to
at least annually, convene an advisory group
of stakeholders representing a broad array of
energy and environmental interests to adviseon
how to best utilize said funds
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Operating Plan Funding Target Areas

• Residential, Commercial, Industrial (On-site
  Energy Use)
• Power Supply and Delivery
• Transportation
• Agriculture, Forestry and Waste Management
• Multidisciplinary Initiatives

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Renewable Portfolio Standard

• Established by Public Service Commission Order
  Regarding Retail Renewable Portfolio Standard,
  issued and effective September 24, 2004 (Case
  03-E-1088)
• Goal 25 of the power consumed in the state to
  come from renewable sources by 2013
• NYS Register Notice (Oct. 1, 2008) 30 by 15
• NY RPS was adopted in 2004 as a policy goal to
• Stimulate economic development
• Improve the environment
• Pursue energy independence

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RPS Program

• Main Tier
• Grid Connected resources Wind, biomass, small
  hydro
• Total new capacity (at end 2009) 1400
• Resource Type (15 Hydro 4 Biomass11 Wind)
• Wind Installed
• 1300 MW installed
• gt 8000 MW in pipeline
• Customer-sited Tier
• Distributed resources solar PV, small wind,
  fuel cells, anaerobic digesters
• PV 15.5 MW installed or contracted 442 of
  original program target
• 16 Biogas-to-Electricity facilities 21
  additional projects under development

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Energy Efficiency

• System Benefits Charge (SBC)
• Established by Public Service Commission
• Order Regarding Competitive Opportunities for
  Electric Service, issued and effective May 20,
  1996 (Case 94-E-0952)
• Order and Opinion Concerning System Benefits
  Charge Issues, issued and effective January 30,
  1998 (Case 94-E-0952)
• Public benefits program investing 175M annually
• Energy Efficiency (Residential/Commercial/Industri
  al)
• Low Income
• Research Development
• Activities include
• Market Transformation
• General Awareness Campaigns

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Energy Efficiency

• Energy Efficiency Portfolio Standard (EEPS)
• Established by Public Service Commission Order
  Establishing Energy Efficiency Portfolio Standard
  and Approving Programs, issued and effective
  June 23, 2008 (Case 07-M-0548)
• Resource acquisition program to help achieve the
  15 x15 goal
• 330 Million annually
• Focused on
• Better integrating energy efficiency into utility
  operations
• Improving the cost effectiveness of EE projects
  to save kWh

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Thank you

• www.nyserda.org