BILL NUMBER: S7321

SPONSOR: STEC
 
TITLE OF BILL:

An act to amend the public service law, in relation to directing the
public service commission to conduct a full cost benefit analysis of the
technical and economic feasibility of renewable energy systems in the
state of New York and to compare such directly with other methods of
electricity generation

 
PURPOSE:

This bill directs the Public Service Commission to conduct a full cost-
benefit analysis of the various technical and economic aspects (includ-
ing secondary and tertiary effects) of renewable energy systems in New
York State and the deployment thereof.

 
SUMMARY OF PROVISIONS:

Section 1 amends the Public Service Law by adding a new section (66-s)
to direct that a supplemental study of the costs, benefits and technical
              

& economic feasibility of meeting Climate Leadership and Community
Protection Act (CLCPA) targets be conducted within a specific timeframe.

Subsection 1 describes the timeframe, both initial and recurring, for
this study.

Subsection 2 directs that such study shall include a full cost/benefit
analysis assessing the following, including, but not limited to:

* The current state of technology in place for electric generation as of
the date of the study, as well as new and emerging generation methods;

* The impact of CLCPA renewable energy target compliance on electricity
wholesale prices, delivery rates and total bills that energy consumers
in this state will pay, including indirect energy costs.  This analysis
would include the impacts of subsidies to site land-based and offshore
renewable energy projects, the build-out of the electric infrastructure
to receive and transmit renewable power, subsidies of energy storage
projects, and the addition of new loads associated with deep electrifi-
cation efforts in the residential, commercial, industrial and transpor-
tation sectors. This analysis shall address both short-term and long-
term maintenance costs;

* Direct and indirect costs associated with the transition to heating
and cooling provided by heat pumps powered by renewable energy systems;

* The current civilian state of the art in nuclear reactor technology
and the role such technology could play in the transition to a cleaner,
more reliable, and more resilient energy portfolio in New York state;

* The impact of renewable energy systems on the reliability of the elec-
tric system in this state. Among other things, the study shall address
voltage sags and how reliability shall be maintained when solar and wind
resources are not generating power. Such study also shall address how
reliability will be maintained if fast-ramping gas-fired generation is
phased out;

* Costs and logistical issues associated with end-of-life disposal of
renewable energy system components;

* Costs (both short-term and long-term) associated with building-out and
maintaining adequate energy storage/battery capacity for periods when
renewable energy systems are intermittent;

* Direct and indirect transportation costs associated with such matters
as charging station infrastructure, a moratorium on gas pipeline
construction, and over-the-road transport of goods, such as perishable
agricultural products;

* The impact of CLCPA compliance on natural gas market prices, delivery
rates and total bills that energy consumers in this state will pay.  The
analysis shall address both short-term and longterm maintenance costs;

* The impact of CLCPA compliance on the reliability of the natural gas
system in this state and especially its ability to support manufacturing
processes for which today there are no known replacement fuels. Among
other scenarios, the study shall examine the extent to which: many
manufacturers utilize and depend upon natural gas for process purposes;
restaurant and food service industries rely extensively on natural gas
service for cooking, due to the ability of gas ranges and ovens to heat
foods more evenly than their electric counterparts; natural gas is used
for heating in 46% of households in the Northeast; and reliable and
affordable heating and other services supplied by natural gas will be
maintained for all of these energy consumers if natural gas use is
phased-out in New York;

* Clarification of the impact of CLCPA compliance on industrial use of
fossil fuels; and

* Examination of the land use implications of major renewable electric
generating facilities in the State, both from the standpoint of tourism
and this state's tourism-based economic sectors, and potential effects
on the viability of agriculture in this state.

Subsection 3 directs that the study be built upon expertise already at
the disposal of the PSC, DPS and Climate Action Council.

Subsection 4 directs the Department of Public Service to contract with
an independent, competitively selected consultant to undertake the
study.

Subsection 5 directs the Department to consult with any outside entities
necessary to assist with the study.

Subsection 6 directs that a report be published containing the study's
findings, and directs that said report be transmitted to Legislative
leadership within a specific timeframe.

Subsection 7 authorizes the Long Island Power Authority (LIPA) and the
New York Power Authority (NYPA) to make voluntary contributions to the
study, if desired.

Subsection 8 provides the authority for, and a timeframe for, the
promulgation of regulations based upon recommendations contained within
the report.
Section 2 provides the effective date for this legislation.

 
JUSTIFICATION:

As the Climate Action Council (CAC) continues its work on the implemen-
tation of the Climate Leadership and Community Protection Act (CLCPA)
there have been many projections regarding the significant economic and
fiscal implications of full CLCPA implementation; some estimates show it
will cost individuals, families, farmers and businesses billions of
dollars per year through increased taxes, utility/electric rates/ bills
and home and business conversion and retrofit costs.

History has shown us time and again that attempts to capitalize upon
and/or mandate the use of emergent technologies always results in belat-
ed realizations that such technological developments aren't the unal-
loyed goods they were originally purported to be; Mandating technolog-
ical transitions based upon soundbites and the 24/7 news cycle (and,
substantially, little else) is shortsighted and unwise. Green technolo-
gies are anything but green in teinis of the materials, costs, and meth-
ods used in construction and production, but currently any discussion of
adverse economic, environmental and societal impacts from these technol-
ogies is met with derision and/or the attempted personal & professional
destruction of those who bring these issues forward.

Given the wide-ranging impact the CLCPA will have on families and busi-
nesses, it has become clear that a full, transparent, and detailed proc-
ess must take place to provide the public with a full accounting of the
true and actual financial costs the full implementation of the CLCPA
will have on state residents and businesses.

While the objective of cleaner air, cleaner water and a more healthful
environment is laudable, such objectives must be balanced with the ener-
gy needs of a stable, thriving first-world economy, which is and will
remain dependent upon both a diverse energy mix and a guaranteed,
affordable and reliable supply of on-demand electrical power. The need
for, and maintenance of, a reliable electrical grid and the sources to
supply it are only going to increase over time, and heretofore insuffi-
cient attention has been paid to how reliance upon renewables (specif-
ically wind- and solar-powered generation facilities) will affect the
reliability and cost of the electrical grid as well as land use across
the state, in addition to many other factors at play.

With these concerns in mind, it is essential that the State require that
the totality of its efforts to comply with CLCPA mandates undergo a
complete cost/benefit analysis, undertaken by a third-party independent
consultant, before recommendations to implement the CLCPA mandates take
effect.

 
LEGISLATIVE HISTORY:

New bill

 
FISCAL IMPLICATIONS:

Minimal administrative costs to the State pursuant to contracting for a
third party consultant to undertake the study.

 
EFFECTIVE DATE:
This act shall take effect immediately.