We will provide incentives
and reduce barriers to renewable energy and pilot emerging
technologies
Renewable energy is derived from emission-free and seemingly
unlimited sources such as solar, wind, and hydroelectric
power. Over the long-term, renewable energy has the
potential to play a significant role in our energy supply.
(See case study on facing page: Tidal Power in New York
City)
New York State is a leader in renewable power, with
extensive hydroelectric and wind resources already located
upstate, and several major wind farms currently under
development. The State has also committed to ensure
that 25% of its energy comes from renewable sources
by 2013.
Today, New York City receives over 6% of its electricity
from the State's renewable energy resources. In addition,
the City recently committed to purchase 20 MW of wind
for City government operations starting in 2008. This
agreement helped support the development of a second
phase of a 107 MW wind farm upstate. New York City consumers
also have the opportunity to further support the market
for upstate wind and other renewables by selecting green
power as their energy source.
If we expand our reliance on renewable energy, we could
help secure our energy supply, reduce our greenhouse
gas emissions and improve air quality.
Solar energy
Of all the renewable energy sources, solar currently
has the greatest potential to generate electricity within
the five boroughs. The technology is commercially available,
our abundant roofs offer ample space for panels, and
solar energy is most available when the city needs it
most-during hot, sunny days.
Estimates of solar potential by Columbia University,
the City University of New York, and NYSERDA range from
6,000 MW to over 15,000 MW, with one study claiming
solar can contribute 18% of peak load by 2022. But solar
energy is still not as cost-effective as gas-fired electricity.
And New York City is uniquely expensive: our taller
buildings require more wires and cranes to carry equipment
to rooftops, while extensive interconnection requirements
and inspections delay implementation. For these reasons,
installed costs for solar are approximately 30% higher
than in New Jersey and 50% higher than in Long Island.
As a result, even with incentives from the Federal
government and the State, the City has only been able
to achieve 1.1 MW of solar capacity. To ensure solar
meets its long-term potential to contribute more significantly
to our supply, we must employ a range of strategies
to develop a more competitive market.
We will create a property tax abatement for solar
panel installations
In order to spur the market in the private sector and
help achieve needed economies of scale to bring down
prices, New York City will offer a property tax abatement
for solar installations. The incentive will cover 35%
of installation costs for the first three years of the
program, with the incentive scaling back to 20% in years
four and five. The graduated structure of this incentive
will grant early adopters greater benefits, ensuring
that a market is established.
In addition, the City will study the cost-effectiveness
of solar electricity when evaluated under a Real Time
Pricing scenario. The City will also support the construction
of the city's first carbon neutral building. This building,
located along the East River, will be powered primarily
by solar energy.
Progress (as of 4/22/08):
In the legislation that the City submitted to Albany
in May, the Administration included language for a
solar property tax abatement. The City will continue
to advocate for enactment of this measure. The City
expects the State Legislature will approve this tax
change before the end of the Albany legislative session
in June.
In Spring 2008, the US Department of Energy (US DOE)
designated NYC a Solar America City and awarded the
City funding and technical assistance for solar programming.
As part of Solar Cities, the Mayor's Office, NYCEDC
and CUNY are working with the National Renewable Energy
Lab (NREL) on a series of studies, including the cost
effectiveness of solar when evaluated on real-time
pricing basis. Other studies will identify solutions
to improve the interconnection process, obtain accurate
data on the extent solar can help with peak load management,
study where solar installations could be most useful
to the grid, and strategies to incorporate solar into
emergency planning. NREL and the City plan to release
RFPs for these studies in Summer 2008.
Progress (as of 10/22/08):
On August 9, the Governor signed Bill No. A11202, providing a four-year property tax abatement installation for the installation of photovoltaic panels. The City is undergoing its rule-making process to implement this initiative.
We will increase use of solar energy in City buildings
through creative financing
Since City facilities are not eligible for NYSERDA incentives
or tax credits, the economics for public solar projects
are even more difficult than in the private sector.
In order to facilitate solar projects on City buildings,
we will release an RFP to attract private solar developers
to build, own, operate, and maintain the panels on City
buildings. The City will enter into a long-term contract
with the developer to purchase the solar energy generated
by these panels.
Progress (as of 4/22/08):
The City has released an RFP for a solar developer
to purchase, install, own, and operate 2 MW of solar
capacity, in exchange for a long-term power purchase
agreement with the City. Over the next few months,
the City will receive bidder proposals, select a developer,
finalize a contract, and enter into a power purchase
agreement.
The architects have completed the schematic design
of the city's first carbon-neutral building, Solar
Two. However, due to City budget constraints, this
funding for this project has been deferred.
Progress (as of 10/22/08):
On April 8, the Mayor released an RFP for a contractor
to supply 2 megawatts of solar power to City buildings
in exchange for a long-term power purchase agreement.
Bids are due October 23.
We will work with the State to eliminate barriers
to increasing the use of solar energy in the city
To further promote solar energy, the City will work
with the State Legislature and the PSC to reduce two
existing barriers: the amount of solar that can be connected
to the grid, currently capped at 8.1 MW, and the amount
of excess power that can be sold back to the grid, currently
limited to 10 KW of residential power.
Progress (as of 10/22/08):
On August 5, the Governor signed Bill No. A11582/S8481,
changing the net-metering limit from 10 kilowatts to
2 megawatts and allowing non-residential properties
to take advantage of opportunities to provide wind energy
back to the utility grid in exchange for a credit against
their own usage.
Methane and organic waste
Our garbage and sewage offer both potential and perils.
If used productively, organic waste or biomass can provide
a plentiful source of energy, producing as much as 450
MW-or the equivalent of a medium-sized power plant.
Handled improperly, it can add significantly to our
greenhouse gas emissions through the production of methane-which
is 21 times as potent a greenhouse gas as CO2.
New York City's three main sources of methane include
its current solid waste, its former landfills, located
within the city, and its sewage treatment plants. Currently,
some of this methane is captured and either flared-burned
and converted into less potent CO2-or used to create
energy. But much of it still escapes into the atmosphere.
That's why New York City will work to maximize the
safe, cost-effective extraction of useful energy from
its organic waste streams and minimize the methane and
CO2 emissions associated with waste.
Progress (as of 4/22/08):
In both Spring and Fall 2007, the City supporting legislation
that would increase the opportunity to sell solar electricity
back to the grid (net-metering) and to increase net-metering
caps. The City will continue to work with stakeholders
for passage of a bill. In addition, the City continues
to participate in the New York State Renewable Energy
Task Force, which released a report in February 2008
with recommendations to support an updated net metering
bill, expand Renewable Portfolio Standard funding, and
expand solar R&D and support for manufacturers in
the State. As part of the Solar America City program,
NREL is assisting the City in studies to identify solutions
to improve the interconnection process, obtain accurate
date on the extent solar can help with peak load management,
study where solar installations could be most useful
to the grid, and strategies to incorporate solar into
emergency planning. NREL and the City plan to reduce
RFPs for these studies in Summer 2008.
We will pilot one or more technologies for producing
energy from solid waste
The City's recently approved Solid Waste Management
Plan (SWMP) called for the evaluation of alternative
waste technologies for converting organic waste into
usable energy. Out of 43 technologies studied, two offered
superior environmental performance and cost-effectiveness-anaerobic
digestion and thermal processing. We will launch pilot
projects to test both of these technologies for broader
application.
The City is also pursuing a pilot in the Hunts Point
Food Distribution Center. In 2004, the City commissioned
a study to investigate the feasibility of on-site organic
waste recovery at the Food Distribution Center in the
Hunts Point neighborhood of the Bronx. The study concluded
that it is feasible to site an anaerobic digestion facility
that would provide a reasonably priced organics recovery
option. The facility would create jobs for the Hunts
Point community, generate a renewable energy source
and a marketable compost product, and reduce exports
of waste to out-of-state disposal facilities with associated
truck emissions. The City will work with stakeholders
to learn more about the potential for such a facility
in Hunts Point, including more exact costs of a potential
organics recovery facility. To do so, the City will
issue an RFP to target the short list of firms identified
in the feasibility analysis, and set specific operational
and economic parameters for a facility.
Progress (as of 4/22/08):
In 2007, the Administration and City Council designated
members to the Citywide Siting Task Force to create
a structure to evaluate potential sites for an alternative
waste technology pilot project. The First meeting
of the Citywide Siting Task Force will convene in
the first quarter of 2008. The City and the Task Force
will review potential sites and will report findings
to the City Council in the next six months. The City
is also drafting a scope of work for a second phase
feasibility study for an anaerobic digestion (AD)
pilot project at the Hunts Point Food Distribution
Center. In addition, the City is drafting an RFP for
a potential AD pilot project, and pending second phase
feasibility and community support, and based on Citywide
Siting Task Force site approval, will begin drafting
an RFP for potential alternative waste technology
pilot. The City expects to select a vendor for the
AD pilot by 2008.
We will end methane emissions from sewage treatment
plants and expand the use of digester gas
When wastewater is processed in a sewage treatment plant,
it produces digester gas, which contains methane and
CO2. Currently, roughly 60% of New York City's digester
gas is collected and used to create energy via fuel
cells, most of which is used to power the sewage treatment
plant itself, another 25% is flared, and the remaining
15%-the equivalent of 165,000 tons of CO2-escapes. Over
the next three years, the City will end all methane
emissions from sewage processing, and will work to expand
the use of digester gas for energy production.
Progress (as of 4/22/08):
DEP has embarked on a two-year program to contain
all methane from its waste water treatment plants
and is designing a process to analyze several projects
that could use methane to create energy, including
at Owls Head Wastewater Treatment Plant, where the
City has completed an engineering design for a demonstration
project. DEP will continue its program to contain
all methane and will further evaluate the Owls Head
project.
Progress as of (10/22/08):
In the Long-Term Plan for Reducing Energy Consumption
from Municipal Buildings and Operations released July
7, the City's Energy Conservation Steering Committee
identified and is moving forward to implement methane
capture projects at a total investment of $35 million
over ten years. These projects will result in an annual
greenhouse gas emissions reduction of 265,648 metric
tons.
We will study the expansion of gas capture and energy
production from existing landfills
Beginning in the 1970s, some of the methane from Fresh
Kills has been processed and marketed as natural gas,
generating revenue for the City. Since the original
gas collection system was installed, new technologies
have emerged, the cost of natural gas has skyrocketed,
and the City has committed to a greenhouse gas reduction
target of 30%. Given these changes, the City will initiate
a study to explore the feasibility of generating more
energy from its landfill gas, and it will review the
standards regarding methane capture and flaring at the
city's existing landfills every five years to see whether
they should be amended to support the City's greenhouse
gas reduction goal.
Progress as of (4/22/08):
The City will initiate a study to explore the feasibility
of generating more energy from the gas from its in-city
landfills.
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