making the shift to a clean energy economy in new york

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Making the Shi, to a Clean Energy Economy in New York Jen Metzger, CoDirector Ci=zens for Local Power ci$zensforlocalpower.com

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Page 1: Making the Shift to a Clean Energy Economy in New York

Making  the  Shi,  to  a  Clean  Energy  Economy  in  New  York  

Jen  Metzger,  Co-­‐Director  Ci=zens  for  Local  Power  

 

ci$zensforlocalpower.com  

Page 2: Making the Shift to a Clean Energy Economy in New York

•  Dedicated  to  transi$oning  to  a  locally-­‐based  clean  energy  economy  in  the  Mid-­‐Hudson  Region.    

•  Undertakes  research,  educa$on,  advocacy,  and  project  coordina$on  at  local  to  state  levels.  

•  Supports  community  engagement  in  energy  decision-­‐making  to  strengthen  local  economies,  mi$gate  climate  change,  and  increase  resilience.  

Who  we  are  

Page 3: Making the Shift to a Clean Energy Economy in New York

New  York’s  Energy  Vision  does  not  include  fossil  fuel  infrastructure  

Page 4: Making the Shift to a Clean Energy Economy in New York

●  NY  carbon  emissions  reduc$on  targets:  40%  by  2030  and  80%  by  2050  below  1990  levels.  

 ●  Phase  out  coal  power  plants  by  2020    ●  50%  Renewable  energy  in  electricity  and  23%  reduc$on  in  energy  consump$on  in  building  stock  by  2030  

NYS  climate  change  commitments  

Page 5: Making the Shift to a Clean Energy Economy in New York

 ●  Electricity  is  a  “premium”  fuel,  easily  converted  to  

light,  heat,  and  useful  work  of  all  kinds  via  motors  &  electronics    

 ●  No  combus$on  at  point  of  use  (safer  &  easier:  

remember  the  coal-­‐fired,  steam-­‐powered  washing  machine?)  

 ●  Our  current  dependence  on  fossil  fuels  for  

transporta$on  and  hea$ng  will  decline  as  use  of  electricity-­‐dependent  technologies  spreads.  

   

   

A  growing  role  for  electricity  in  NY’s  clean  energy  future  

Page 6: Making the Shift to a Clean Energy Economy in New York

Source:  Mid-­‐Hudson  Regional  Sustainability  Plan  

Free  Ulster  County  EV  charging  sta=ons  support  EV  market  &  encourage  tourism  

MH  Region  Fuel  Use  (2010)  

Tomorrow’s  fuel  mix  will  look  very  different  from  today  

By  sector   Percent  Transporta$on   50%  

Residen$al   25%  

Commercial   18%  

Industrial   7%  

By  fuel  type   Percent  Petroleum   47%  

Natural  Gas   30%  

Electricity   18%  

Other   5%  

Coal   1%  UC  County  ExecuEve  Mike  Hein  and  

Environmental  Coordinator  Amanda  LaValle  

Page 7: Making the Shift to a Clean Energy Economy in New York

Manda$ng  “clean”  energy  procurement  to  meet  the  50  by  30  goal  (addi$onal  33,700  GWh  of  renewable  energy).      As  proposed,  will  require  u$li$es  &  ESCOs  to  procure  a  defined  %  of  electricity  annually  from  each  of  3  “$ers,”  beg.  in  2017:  ●  Tier  1:  new  renewable  resources  ●  Tier  2:  exis$ng  renewable  resources  ●  Tier  3:  nuclear  power  (keeping  Ginna  and  Fitzpatrick  plants  

on  line)            

Coming  in  June  2016:  New  Clean  Energy  Standard  

Page 8: Making the Shift to a Clean Energy Economy in New York

•     Centralized  –   Big  (can  be  up  to  4,000  MW)  –   Remote,  requires  transmission  –  wastes  energy    –   High  voltage  to  squeeze  big  power  into  ligle  wires  

 •     Decentralized  or  “Distributed  Genera=on”  

–   Smaller  (typically  under  2  MW;  avg.  home,  5  kW)  –   Mul$ple  sources  located  near  users  –  conserves  energy  –   Lower  voltage  

Genera=on  of  electric  power  

Page 9: Making the Shift to a Clean Energy Economy in New York

Distributed  Genera=on  -­‐  “behind  the  meter”  

Page 10: Making the Shift to a Clean Energy Economy in New York

●  NYS  PSC  proceeding  launched  in  2014.    ●  Seeks  to  shij  NY  to  a  more  distributed  energy  

system  relying  on  renewable  energy,  energy  efficiency,  and  demand  management  (“distributed  energy  resources”  or  “DER”).  

 ●  Goal  is  to  to  create  a  cleaner,  more  efficient,  

more  resilient  and  more  affordable  energy  system.  

 

Reforming  the  Energy  Vision  Ini=a=ve  (“The  REV”)  

Page 11: Making the Shift to a Clean Energy Economy in New York

Shi,ing  to  a  Distributed  Energy  System  

The  Future  of  Energy  

Centralized  Power  Yesterday  

Clean,  Local  Power  Tomorrow  

Page 12: Making the Shift to a Clean Energy Economy in New York

•  Growing  peak  demand  increases  costs  and  threatens  reliability  

 •  An$quated  infrastructure  requiring  approx.  $30  

billion  to  upgrade  over  next  10  yrs.    •  Skyrocke$ng  growth  in  natural  gas  dependence.  

Old  system  is  unsustainable  

Page 13: Making the Shift to a Clean Energy Economy in New York

1. Customer  knowledge  &  tools  to  effec$vely  manage  total  energy  bill.  

2. Expanded  market  for  DER  products  and  services.  

3. Systemwide  efficiency.  4. Fuel  and  resource  diversity.  5. System  reliability  and  resiliency.  6. Reduc$on  of  carbon  emissions.    

6  PSC  REV  objec=ves  

Page 14: Making the Shift to a Clean Energy Economy in New York

• REV  ini$a$ve  opens  real  opportuni$es  for  communi$es  to  move  toward  a  cleaner,  more  locally-­‐based  energy  system.    

 • Numerous  REV-­‐related  PSC  proceedings  underway  on  specific  topics.  

The  opportuni=es  

Page 15: Making the Shift to a Clean Energy Economy in New York

PSC  order  on  community  net-­‐metering    

•  In  July  2015,  PSC  enabled  community  shared  renewables  in  NYS    

•  Mul$ple  customers  can  net-­‐meter  from  single  off-­‐site  facility.  

•  Allows  access  to  renewable  benefits  by  renters,  low  &  moderate  income  customers,  and  homeowners  whose  proper$es  are  poorly  sited  for  renewable  energy.  

A  big  step  forward  for  local  power  

Page 16: Making the Shift to a Clean Energy Economy in New York

Community  Choice  Aggrega=on  A  Path  to  Local  Power  

Page 17: Making the Shift to a Clean Energy Economy in New York

The Vision Photo  credit:  Ins$tute  for  Local  Self  Reliance  

Page 18: Making the Shift to a Clean Energy Economy in New York

The  Vision  

An  equitable,  sustainable  energy  economy  that  provides  green  jobs  and  renewable  

ownership  opportuni$es  to  our  residents  and  businesses,  and  a  more  resilient  energy  system  with  greater  democra$c  control.  

This  is  a  moment  of  unprecedented  opportunity.    

THE  KEY:  Community  Choice  Aggrega=on  (CCA).  

Page 19: Making the Shift to a Clean Energy Economy in New York

CCA  in  a  Nutshell    CCA allows municipalities to aggregate the buying power of individual customers:  •  to secure alternative energy supply contracts;  •  to develop energy programs tailored to community

needs and goals.

The CCA replaces the utility as the default supplier of electricity. •  Customers who previously purchased supply through the

utility can choose to “opt-out” and remain with the utility. •  Customers already enrolled with a different energy supplier

can “opt in” to the CCA.  

Page 20: Making the Shift to a Clean Energy Economy in New York

•  CCA customers are afforded the same protections as those who “opt-out” of the CCA contract, plus clean supply and enhanced energy services.  

 

CCA  in  a  Nutshell  (con=nued)  •  The CCA recovers administrative costs through the rates,

not through taxes.  

Page 21: Making the Shift to a Clean Energy Economy in New York

1990s: First invented in Massachusetts, the primary objective was to keep rates down through group purchasing.  

The  Evolu=on  of  CCA  

CCA  “1.0”  

CCA  “2.0”  

2010s: Lower and stable rates still important, but primary focus is on community-wide energy planning to build resilience, reduce carbon emissions, & grow local economy.  

CCAs currently exist in 1,300 communities across six states, including MA, CA, NJ, OH, IL, and RI.  

Now it’s coming to New York.  

Page 22: Making the Shift to a Clean Energy Economy in New York

•  CCAs  study  the  energy  landscape  unique  to  their  region:  – Acquire  data  from  the  u$lity  – Map  the  distributed  resource  poten$al  –  Iden$fy  opportuni$es  for  DER  that  are  most  cost-­‐effec$ve  for  customers;  

•  CCAs  develop  programs  to  facilitate  investments  by  residents,  businesses,  and  others.  

CCA:  A  Pathway  to  a  Distributed  Energy  System  

Page 23: Making the Shift to a Clean Energy Economy in New York

Why CCA?

Page 24: Making the Shift to a Clean Energy Economy in New York

CCA:  Summary  of  Benefits  

Clean  Energy  &  Resiliency  

Local  Economic  Growth  &  Good  Jobs  

Long-­‐Term  Rate  Stability  &  Compe$$ve  Costs  

Local  Control  &  Accountability  

Page 25: Making the Shift to a Clean Energy Economy in New York

•  New  York  depends  on  energy  imports  for  92%  of  its  energy  requirements.    

•  For  every  $1  million  invested,  17  jobs  are  created  due  to  efficiency,  14  for  solar,  compared  to  only  5  for  natural  gas.    

•  Facilitate  investment  by  businesses  to  lower  energy  costs.  

•  Lower  energy  costs  frees  up  income  to  be  spent  in  the  local  economy,  genera$ng  more  local  wealth.  

Economic  Development  

Page 26: Making the Shift to a Clean Energy Economy in New York

JOBS

Page 27: Making the Shift to a Clean Energy Economy in New York

Local  Ownership  =  Greater  Economic  Impact  

Page 28: Making the Shift to a Clean Energy Economy in New York

Source:  US  Dept.  of  Energy    

CCA  Savings  

Page 29: Making the Shift to a Clean Energy Economy in New York

Fossil  Fuel  Price  Vola=lity  

Page 30: Making the Shift to a Clean Energy Economy in New York

CCA  Benefits:  Resiliency  

Page 31: Making the Shift to a Clean Energy Economy in New York

Sonoma  Clean  Power:  Case  Study  

–  Provide  cost  compe==ve  electric  services  

–  S=mulate  and  sustain  the  local  economy  

–  Reduce  GHG  emissions  –  Stabilize  rates  –  Energy  reliability  

•  Goals  are  developed  through  a  public  process.  

Page 32: Making the Shift to a Clean Energy Economy in New York

Sonoma  Clean  Power:  The  Ins=tu=on  

•  A  public  authority  created  to  administer  the  CCA.  •  Can  enter  into  contracts  for  energy  supply  &  issue  revenue  bonds  to  finance  customer  programs.  

•  Municipali$es  join  via  local  law  and  resolu$on,  and  par$cipate  in  its  governance.  

•  Administered  by    small  staff  under  a  Chief  Execu$ve  Officer  that  reports  to  Governing  Board.  

•  Financed  through  rates,  not  taxes.    

Page 33: Making the Shift to a Clean Energy Economy in New York

SCP:  Residen=al  Rates  

Page 34: Making the Shift to a Clean Energy Economy in New York

•  Net  Green:  Enhanced  Net  Metering  •  ProFIT:  Feed-­‐in-­‐Tariff  to  encourage  the  construc$on  of  new  clean  genera$on  (less  than  1  MW).    

•  Virtual  Net  Green:  An  apartment  building  with  solar  could  be  shared  with  all  residents,  offseqng  a  por$on  of  each  apartment’s  electricity  needs.    

SCP:  Programs  

Page 35: Making the Shift to a Clean Energy Economy in New York

•  A  PSC-­‐approved  Westchester  CCA  pilot  has  recently  secured  lower  cost  energy  supply  than  ConEd  for  both  a  “brown”  and  “green”  op$on.    

•  PSC  Order  enabling  CCA  statewide  is  expected  in  late  spring  or  early  summer.  

•  Other  on-­‐going  REV  proceedings  will  impact  the  shij  to  a  locally-­‐based  clean  energy  economy.  

Status  of  CCA  in  NYS  

Page 36: Making the Shift to a Clean Energy Economy in New York

•  U$li$es  and  other  powerful  economic  interests  seek  to  influence  REV  to  their  benefit.  

 •  Heavy  reliance  on  market  to  achieve  policy  goals.  

 •  Need  to  ensure  more  effec$ve  par$cipa$on  by  under-­‐represented  groups,  the  public.  

The  challenges  

Page 37: Making the Shift to a Clean Energy Economy in New York

•  A statewide coalition of community-based organizations and grassroots groups, including CLP.

•  Mission: To advance a just and

participatory transition to a resilient, localized, and democratically controlled clean energy economy in New York State.

The  Energy  Democracy  Alliance  

Page 38: Making the Shift to a Clean Energy Economy in New York

What  you  can  do  to  support  a  local  clean  energy  economy  

•  Become  informed  and  get  involved!  Check  out  resources  on  the  Energy  Democracy  Alliance  and  Ci$zens  for  Local  Power  websites:  

energydemocracyny.org  &  ci=zensforlocalpower.com  •  Sign  up  for  CLP’s  newslegers  and  ac$on  alerts  on  the  website.  

•  Agend  &  comment  on  the  record  at  the  PSC’s  upcoming  CES  hearing.    

•  Go  to  dps.ny.gov  and  submit  comments  in  REV,  CES  and  CCA  proceedings.  

Page 39: Making the Shift to a Clean Energy Economy in New York

What  you  can  do  to  support  a  local  clean  energy  economy  

●  Join  local  community  &  environmental  groups  and  municipal  volunteer  commissions.  

 ●  Explore  opportuni$es  for  local  clean  energy  planning,  community  renewable  projects  and  CCA  forma$on.  

Page 40: Making the Shift to a Clean Energy Economy in New York

Thank  You!  

ci=zensforlocalpower.com