NYISO Comprehensive Reliability Plan

On November 29, 2023 the New York Independent System Operator (NYISO) released its 2023-2032 Comprehensive Reliability Plan (CRP).  This is a key part of New York’s reliability planning process and addresses the Climate Leadership & Community Protection Act (Climate Act) net zero transition mandate for the 70% renewable energy by 2030 and the zero-emissions grid by 2040.  The report includes recommendations that are odds with climate activists’ demands.  This post summarizes recommendations related to the Climate Act.

I have followed the Climate Act since it was first proposed, submitted comments on the Climate Act implementation plan, and have written over 350 articles about New York’s net-zero transition.  I have devoted a lot of time to the Climate Act because I believe the ambitions for a zero-emissions economy embodied in the Climate Act outstrip available renewable technology such that the net-zero transition will do more harm than good by increasing costs unacceptably, threatening electric system reliability, and causing significant unintended environmental impacts.  The opinions expressed in this post do not reflect the position of any of my previous employers or any other organization I have been associated with, these comments are mine alone.

Overview

The Climate Act established a New York “Net Zero” target (85% reduction and 15% offset of emissions) by 2050.  It includes an interim 2030 reduction target of a 40% reduction by 2030 and a requirement that all electricity generated be “zero-emissions” by 2040. The Climate Action Council (CAC) is responsible for preparing the Scoping Plan that outlines how to “achieve the State’s bold clean energy and climate agenda.”  In brief, that plan is to electrify everything possible using zero-emissions electricity. The Integration Analysis prepared by the New York State Energy Research and Development Authority (NYSERDA) and its consultants quantifies the impact of the electrification strategies.  That material was used to develop the Draft Scoping Plan.  After a year-long review, the Scoping Plan recommendations were finalized at the end of 2022.  In 2023 the Scoping Plan recommendations are supposed to be implemented through regulation, PSC orders, and legislation. 

In order to ensure that the onslaught of regulations and orders is feasible the NYISO follows its reliability planning process.  The press release for the 2023-2032 Comprehensive Reliability Plan (CRP) says that it “highlights growing risks to electric system reliability, including: projected increases in peak demand due to electrification of the transportation and building sectors; additional generator deactivations; delayed implementation of planned infrastructure projects; and extreme weather.” It is a part of the NYISO reliability planning process that “sets forth a plan to maintain a reliable bulk electric grid based on expected changes and conditions over a ten-year planning period.”  It is issued every two years.  The report and appendices are available from the NYISO.

Press Release Highlights

In this section I will annotate the points made in the press release.  The first paragraph after the introduction notes:

In addition to rising demand due to continued electrification, several large commercial projects in upstate New York are in development and are forecasted to significantly increase energy use over the planning period.  Further, state legislation enacted last year will require the phase-out of the New York Power Authority’s small natural gas plants located in New York City by December 31, 2030. If demand on the grid grows at a rate greater than the buildout of new generation and transmission, reliability deficiencies could arise within the CRP’s ten-year planning period. 

Electrification of the transportation and building sectors is a direct consequence of the Climate Act plan to reduce greenhouse gas emissions (GHG) by electrifying everything possible.  The building and transportation sectors are the two largest sectors of emissions.  There is no question that replacing energy used by direct combustion of fossil fuels with electricity will increase loads.  NYISO is particularly concerned that this transition will not only increase the loads but also shift the peak loads from summer to winter and affect the daily load patterns as well.

The electric grid is an incredibly complex system best left to experts.  The hubris of the progressive wing of the Democratic majority in the New York State Legislature that they should get involved in power planning is blatant pandering to favored constituencies.  The NYPA legislation is a case in point.  Phasing out the New York Power Authority’s small natural gas plants in New York City by any date certain is a risk that is major issue in the CRP.  Increasing load on one hand and retiring generation at the same time is a primary risk identified in the report.

The press release explains how the problem can be addressed:

The potential risks and resource needs identified in the CRP may be resolved by new capacity resources coming into service, construction of additional transmission facilities, increased energy efficiency, integration of distributed energy resources and/or growth in demand response participation.

I do not think that there are any surprises in these recommendations.  It is imperative to build more, connect more, and reduce load to the extent possible but electrification of buildings and transportation means we cannot expect much help there.

The press release highlights risks related to deployment of new resources:

“Our latest report demonstrates the continued importance of the NYISO’s in-depth planning process and the need to closely monitor the rapidly changing electric grid,” said Zach Smith, Vice President, System and Resource Planning.  “In this CRP, we highlight several risk factors that could adversely affect system reliability in the months and years ahead.”

The plan underscores the importance of the timely completion of planned transmission projects – primarily the Champlain Hudson Power Express (CHPE) project – to maintain system reliability. Without the CHPE project in service by May 2026 or other offsetting solutions, reliability margins within New York City would be deficient beginning in 2026.

I cannot over-emphasize how important the NYISO planning process is during this transition.  It is the most prominent process to introduce reality.  Unfortunately, I am concerned that the transition to weather-dependent resources that cannot be dispatched and do not provide ancillary transmission support services is unprecedented and that even the experts at the NYISO will be unable to anticipate all the possible problems.  This could result in blackouts that will be more impactful than any of the potential impacts of a tweak to climatic conditions due to GHG emissions.

In the politicized energy policy environment of New York the NYISO cannot come out and say that risking the reliability of New York City’s electric grid by counting on a specific transmission project is unacceptable. Underscoring the importance of “timely completion” really means we should not make any changes to the existing system until the Champlain Hudson Power Express project is complete.  In addition there are risks to the technology.  I have heard anecdotal evidence that there have been issues with underwater electric cables connecting Long Island to the mainland that lasted longer than expected.  CHPE is mostly underwater from Quebec to New York City but there are above ground lines in Quebec that are even more liable to disruptions.

The strategy to electrify everything will shift the peak load from summer to winter.  This introduces additional issues:

Transition from a summer peaking system to a winter peaking system also poses challenges to grid reliability. This shift, driven by the electrification of the building and transportation sectors, is forecasted to occur within ten years. A winter peaking system introduces new reliability concerns, particularly around fuel availability for gas-fired generators. Based on a recent assessment of New York’s fuel and energy security, the CRP states the following:

Preliminary results of the 2023 Fuel and Energy Security study demonstrate that NYISO will need to rely significantly on dual-fuel generation resources to support winter system reliability into the next decade and changes to the resource mix may complicate system operations during multi-day cold snap conditions. The frequency and severity of projected potential loss of load events grow over the modeling time horizon as the generation mix evolves and the demand for electricity increases.

One of the prominent claims of the Scoping Plan is that the “zero-emissions” electric grid of the future will be “diverse”.  Nothing could be further from the truth.  The ugly secret of wind and solar resources is that their output is correlated.  The CRP notes: “Solar resources will have little to no output during the evening and nighttime hours and reduced output due to cloud cover, while wind resources can experience significant and sustained wind lulls. Periods of reduced renewable output will occur for short durations due to cloud cover or changes in wind speed and for prolonged periods across a daily/seasonal cycle.”  The CRP does not point out that wind lulls frequently occur over the entire state which magnifies the difficulties.

The New York generating system used to be more diverse than today.  New York regulated coal-firing out of business but the coal plants could store on-site fuel.  Natural gas is cheaper and has less environmental impact, but it is also used for home heating and thus subject to curtailment.  New York has significant oil-fired resources that have the advantage that they can be store oil on-site.  The reference to dual-fuel generation refers to the ability of certain facilities to burn oil and natural gas so that they can provide power when natural gas is curtailed.

The press release closes with the following:

Given the rapid pace of change on the bulk electric system, the NYISO will continue to monitor these and other developments to determine whether changing system resources and conditions could impact the reliability of the New York electric grid.

The competitive wholesale electricity markets administered by the NYISO are an essential tool to mitigate risks on the electric system, as well as facilitate the transition of the grid to increased renewables and decarbonization as required under state law.  The competitive markets continue to evolve and adapt to guide and attract new market entry and retention of resources that support reliability. 

The NYISO is a product of the de-regulated electric system that depends on markets.  I am not as optimistic as NYISO that the markets will succeed as suggested.  Energy developers have to be consider the risks and rewards of all the investments they make.  One of the problems in New York City is that the in-city peaking power plants are old.  I know that many of the facilities had plans to re-power with new and much cleaner units and had all the permits in place to build them. However, market uncertainties led to the decision not to build them.  Without expensive guaranteed subsidies I expect that this will be the case for renewable developments.  That sounds less and less like a de-regulated system to me.

Key Reliability Risk Takeaways

The CRP Executive Summary outlines the reliability risks.  There is an important caveat:

The CRP’s finding of no long-term reliability violations reflects the Reliability Planning Process assumptions, which are set in accordance with applicable reliability design criteria and NYISO’s procedures. There are, however, risk factors that could adversely affect system reliability over the planning horizon. These risk factors may arise for several reasons including climate, economic, regulatory, and policy drivers.

The ultimate concern is whether the risk factors are so problematic that it is appropriate to consider if a implementation pause is in order.  It is de rigor to say that climate will affect the availability of electricity, but they are really talking about extreme weather not climate. There are economic issues associated with the renewable developers that could slow or cancel developments,  The Hochul Administration is trying to remove all regulatory barriers but the Federal Energy Regulatory Commission, New York State Reliability Council, New York Public Service Commission, and even the NYISO have regulatory requirements that can affect implementation particularly on the arbitrary schedule of the Climate Act. 

The following list of key risks are all the result of the Climate Act net-zero transition.  In this overview I will include some brief comments.

The CRP is concerned with the speed of change in the electric grid.  Unsaid in the following is that there are no in-kind replacements available for the NYPA small gas plants.  Legislators may think that replacement is only a matter of political will, but reality is different.

The pace of generation retirements has exceeded the pace of resource additions to date. Should this trend continue, reliability needs will be identified both locationally and statewide. For example, retirement of the NYPA small gas plants without adequate replacement would result in a deficiency in New York City of more than 600 MW.

The list includes concerns related to the CHPE project which I addressed earlier:

The reliability of the grid is heavily reliant on the timely completion of planned transmission projects, chiefly the CHPE project. Without the CHPE project in service or other offsetting changes or solutions, the reliability margins would be deficient for the ten-year planning horizon.

The Climate Act transition to electrified heating and transportation is unprecedented. 

There is a clear upward trend forecasted in peak demand over the next ten years, with significant uncertainty driven by electrification of heating and transportation coupled with the development of multiple high-electric demand facilities (e.g., microchip fabrication and data centers). As the demand on the grid grows at a rate greater than the build out of generation and transmission, deficiencies could arise within the ten-year planning horizon.

The NYISO is making their best estimates of the effect on peak load but the estimates are uncertain.  Another big concern is the potential addition of major high demand facilities.  At the top of the list of high demand facilities is the proposed Micron chip fabrication plant near Syracuse which is expected to need as much power as Vermont and New Hampshire combined.

Another key risk is imported power:

New York’s current reliance on neighboring systems is expected to continue through the next ten years. Without emergency assistance from neighboring regions, New York would not have adequate resources throughout the next ten years.

Extreme weather has always been the biggest threat to reliability.  This risk is also listed:

Extreme events, such as heatwaves or storms, pose a threat to grid reliability throughout the planning horizon and could result in deficiencies to serve demand statewide, especially in New York City. This outlook could improve as more resources and transmission are added to New York City.

The CRP links imported power and extreme events.  The document states that:

Statewide resource adequacy during these extreme events relies on neighboring regions for assistance during emergencies. Grid analysis demonstrates that New York would not have adequate resources throughout the next ten years if not for emergency assistance. Such emergency assistance assumes availability of resources from neighboring systems to send power to New York in an event that New York resources are inadequate. The NYISO will maintain interregional collaboration with neighboring systems to monitor the availability of emergency assistance as the resource mix transitions throughout the entire Eastern Interconnection.

I think the extent of the reliance on imported power represents a new paradigm.  It is not clear to me that it is in the best interests of New York to be dependent upon other jurisdictions.  This is especially true as the dependency upon wind and solar resources increases throughout the Eastern Interconnection.  The fact is that the winter worst-case coldest temperature extreme events are associated with low wind and solar resource availability.  The under appreciated problem is that the extent of the low resource availability during those events goes beyond adjacent systems.  Those systems may not be able to provide emergency support even if they wanted to.

There is an unmentioned reliability risk with the potential for devasting consequences.  Projections for future New York electrical energy generation (MWh) call for offshore wind to provide between 15 and 20% of the annual energy needs of the grid.  If a category 4 hurricane hits the offshore wind farms, then a significant fraction of the wind turbines could be damaged or destroyed.  Replacing them in a timely fashion would be a huge problem.

The problems of a winter-peaking system are another reliability risk.  I cannot add anything to the CRP summary:

The New York statewide grid is projected to become a winter-peaking system in the mid-2030s, primarily driven by electrification of space heating and transportation. The New York statewide grid is reliable for normal weather in the winter for the next ten years, but deficiencies would arise as early as winter 2027-2028 for an extreme 1-in-100-year winter cold snap coupled with a shortage of gas fuel supply. This deficiency would grow to a 6,000 MW shortfall by winter 2032-2033. Additional deactivations of dual-fuel generation beyond what is planned will exacerbate the winter reliability risk.

The final reliability risk addresses changes to the planning process:

Planning for the more extreme system conditions of heatwaves, cold snaps, and fuel availability is currently beyond established design criteria. However, several reliability organizations are investigating whether applicable reliability rules and design criteria should be revised to account for these events.

I am disappointed that the CRP did not mention the link between low wind energy resource availability and heatwaves and cold snaps.  Large and intense atmospheric high-pressure systems lead to the most extreme temperatures and cause light winds over enormous areas.  The reliability organizations are just getting their heads around the ramifications of the magnitude, duration, and extent of these events.  They have not addressed the effect on design criteria.  One of the primary criteria today is the loss of load expectation over a ten-year period.  If analysis determines that once every fifteen years that the expected availability of wind resources requires additional support, that means a new planning horizon. 

The unaddressed issue is where do you stop.  A 15-year criterion could require a substantial investment for some resource that will only be used once every fifteen years.  The problem is that you must make the investment because the weather conditions that cause the problem will occur- it is only a question of time.  If the investments are not made, then electricity won’t be available and a catastrophic blackout will occur.  In February 2021, the Texas electric grid failed to provide sufficient energy when it was needed.  The storm was the worst energy infrastructure failure in Texas history and 4.5 million homes and residences were without power, at least 246 people died, and total damages were at least $195 billion. 

Conclusion

The North American electric power grid has been described as the  largest machine in the world.  Incredibly all the fossil, hydro, and nuclear generating stations in the Eastern Interconnection from Saskatchewan to Florida, Oklahoma to Nova Scotia are connected and work together. It relies on the ability of operators to constantly match load demand with generation output.  In order to provide 60 Hz power, the generating turbines are synchronized to run at 3600 revolutions per minute.  Operators keep the voltages as constant as possible in the entire area but have the advantage that those turbines provide inertia, and they can dispatch generating resources as necessary.

The CRP raises important reliability issues, but I think it does not fully convey the magnitude of the proposed “zero-emissions” transition challenge.  The success of the existing power grid and the benefits of affordable and reliable power it provides developed over decades.  Converting the existing system to one that relies on weather-dependent resources and does not inherently provide the ancillary services such as inertia that are inherent to the turbines relied on presently is a massive challenge.  Meeting the ”zero-emission” by 2040 schedule mandated by politicians without relying on nuclear energy exacerbates that challenge.  It is not politically correct for the NYISO to call out this challenge in detail or to explicitly suggest that it is not possible without enormous reliability risks.  I have no such restraints.  Unless the Climate Act mandates are modified and the schedule changed, blackouts will result, and people will freeze to death in the dark;

Ellenbogen: New York State’s Energy Transition

Richard Ellenbogen recently gave an important presentation on New York State’s Energy Transition that details his concerns with the net -zero mandate of the Climate Leadership and Community Protection Act (CLCPA).  I think it is important that his message gets out to all New Yorkers. 

Unfortunately, the presentation is very detailed to avoid issues with those people who have a monetary interest in this process and the climate zealots who will undoubtedly disagree with the findings and recommendations.  This makes the video over two hours long and very dense.  This is beyond the attention span of most people.  I tried to address that problem by highlighting what I think are the primary points with links to the corresponding sections of the video.

Ellenbogen is the President [BIO] Allied Converters and frequently copies me on emails that address various issues associated with the CLCPA.  I have published other articles by him and a description of his keynote address to the Business Council of New York 2023 Renewable Energy Conference Energy titled: “Energy on Demand as the Life Blood of Business and Entrepreneurship in the State -video here:  Why NY State Must Rethink Its Energy Plan and Ten Suggestions to Help Fix the Problems.” There are only a few people in New York that are trying to educate people about the risks of the CLCPA with as much passion as I am but Richard certainly fits that description.  He comes at the problem as an engineer who truly cares about the environment and how best to improve the environment without unintended consequences.  He has spent an enormous amount of time honing his presentation summarizing the problems he sees but most of all the environmental performance record of his business shows that he is walking the walk.  

CLCPA Overview

The CLCPA established a New York “Net Zero” target (85% reduction and 15% offset of emissions) by 2050.  It includes an interim 2030 reduction target of a 40% reduction by 2030 and a requirement that all electricity generated be “zero-emissions” by 2040. The Climate Action Council (CAC) is responsible for preparing the Scoping Plan that outlines how to “achieve the State’s bold clean energy and climate agenda.”  In brief, that plan is to electrify everything possible using zero-emissions electricity. The Integration Analysis prepared by the New York State Energy Research and Development Authority (NYSERDA) and its consultants quantifies the impact of the electrification strategies.  That material was used to develop the Draft Scoping Plan.  After a year-long review, the Scoping Plan recommendations were finalized at the end of 2022.  In 2023 the Scoping Plan recommendations are supposed to be implemented through regulation and legislation.  Ellenbogen’s presentation focuses on these proposed implementation programs.

Presentation Introduction

The Introduction to the presentation explains:

The following video has been made as a public service for the citizens of New York State.  The speakers have no monetary interest in the fossil fuel industry or in any of the equipment manufacturers related to the energy transition.  The rental of the Pelham Picture House, used for the presentation, was covered at their personal expense.

Ellenbogen sent me an email that described the presentation.  He wrote:

The video has some major differences from the presentation that was done as the keynote presentation at the Business Council of NY State Renewable Energy Conference as recent events have made it more apparent that the NY State Energy plan has major flaws in its logic.  Those issues were not unexpected, however watching them occur in real time has made addressing the problems an imperative. Things are not going to get better.

There are several parts of the presentation.  Two videos were running prior to the presentation while people were entering the theater. One is a video describing the products his company makes and how his facility has been made more energy efficient. The second video explains sustainability at Allied Converters and how it has kept them in business despite New York’s high energy prices.  The presentation video itself includes an 8-minute introduction that that used these slides.  The rest of the video is an 80-minute presentation  (slide deck) followed by 45 minutes of questions and answers.

Ellenbogen notes:

The presentation is long because it is very detailed.  It was done that way because everyone that has a monetary interest in this process, along with the climate zealots, is going to try and disparage the information contained in the presentation so I tried to cover all of the issues to avoid that as much as possible.

I am very aware of problems related to trying to describe the intricacies and problems with the CLCPA transition.  It is related to one of my pragmatic environmentalist principles namely the BS Asymmetry Principle described by Alberto Brandolini: “The amount of energy necessary to refute BS is an order of magnitude bigger than to produce it.”  Richard and I must delve into the details to respond to the flaws of the CLCPA.  This is necessary but it also makes it difficult for people to handle the amount and complexity of information needed to explain flaws.  I tried to highlight what I think are the key points in the presentation with links to the corresponding section of the video in case readers do not have the time to listen to the whole thing.

Key Points

In the Introduction Ellenbogen presents an overview of the CLCPA and some of the problems.  A recurring theme in the presentation is that other jurisdictions, especially Germany.  that have been trying to do the same thing as planned in the CLCPA are not doing so well.  Ignoring their experience is risky. He argues that the CLCPA is a fantasy for the following reasons:

  1. Lack of energy to support the plan,
  2. The renewables needed cannot be installed on the mandated schedule,
  3. Costs to excecute the plan will be much greater than other emission reduction strategies,
  4. The plan will increase GHG emissions more than other strategies, and
  5. There are logic errors in the analyses.

John Ravitz from the Business Council of Westchester County collaborated with Ellenbogen to organize the presentation.  During his introduction he argued that we all want a better environment, but we have to do it the right way.  He emphasized the need to have honest conversations about how to get there.  I agree with all those points.  He also said something that confirmed what I had long suspected.  He pointed out that the CLCPA legislation was passed “in the dead of night” at the end of the session and “I guarantee you that 99.9% of the members of the New York State Legislature did not read the bill.”  He said they did not understand the schedule issues and unintended consequences that could happen.

The presentation itself starts with more background of what Ellenbogen did at his business and how that background worries him about the proposed plan to meet the CLCPA mandates. 

There are only two issues where I have substantially different opinions than Ellenbogen.  While I can agree that reducing emissions is a good thing I do not believe that greenhouse gas emission reductions will have any effect on extreme weather.  I toyed with including a more detailed argument for my belief and a response to Ellenbogen’s comments in this regard but I do not want to detract from the main point that the CLCPA is bad policy.

My concerns about the implementation of the CLCPA are very similar to Ellenbogen, but we are not exactly aligned.  One of his big departures from the narrative of the CLCPA acolytes is that he sees a place for new natural gas combined cycle turbines.  That is heresy to those who insist on zero emissions.  I agree with Rich on that, but I think the use of existing fossil-fired generating units is appropriate too because many units have installed additional controls, have lower emissions than in the past, and still fulfill critical reliability services.  There is no question that until the New York independent System Operator (NYOSO) determines those units can be shut down they have to remain available.  However, I believe that it may be appropriate to keep some of those units on standby longer than anyone else admits at this point because wind and solar resources availability during worst-case conditions is a much bigger problem than most people realize.  Those old units can be an insurance policy for those rare and relatively short-term events.

His description of the Complex Problem Conundrum is particularly important.  In the rush to reach zero the Climate Act does not account for likely ratepayer reactions.  If you force people to use something that is more expensive and does not work as well they may resort to alternatives that are even worse.   

Another important discussion explains why New York State energy policy is a mess.  He argues and I agree that political interference in the technical issues associated with operating a reliable and affordable electric energy system cannot end well.  It cannot be emphasized enough that a realistic cost/benefit analysis has not been done.  The Hochul Administration has never provided detailed documentation for the costs and expected emission reductions for the specific control strategies that are included in the Scoping Plan.  That should be the first component of an honest conversation.  His discussion goes on to list many of the obstacles to implementation that are also prime topics for conversations. 

I agree with Ellenbogen’s description of obstacles that must be overcome.  He points out that we are not learning from others and that “Insanity is doing the same thing over and over and expecting different results.”

I have written about the statement by Robert W. Howarth, Ph.D., the David R. Atkinson Professor of Ecology & Environmental Biology supporting the adoption of the Scoping Plan. Howarth claims to be an author of the CLCPA and was a member of the Climate Action Council. Ellenbogen addresses the academic article that Howarth co-authored that is the basis of the Climate Act presumption that no new technology is needed for the electric system transition and that the mandated schedule is possible. Because he is a graduate of Cornell, Ellenbogen felt it was necessary to explain his reasoning in his email:

To anyone at Cornell or Stanford that has a problem with the presentation at the 47 minute mark, I stand behind what I said.  There is information in those documents that was false in 2013 and that has been proven by the fact that in 2023, the technologies that they claimed were readily available then still don’t exist in a form that can be used on the utility system, but this document is being used as the basis for NY State Energy policy and people may die as a result.

Later in the presentation he references work by Cornell engineers that says the transition plan that is the basis of the CLCPA will fail.  It is really troubling that Ellenbogen and the power system experts at Cornell have not been able to influence New York energy policy away from the mis-guided and refuted academic paper co-authored by a biologist.   

The CLCPA will affect the way we heat our homes. Ellenbogen has personal experience with heat pumps and does a good job explaining why the focus on heat pumps as a solution by NYSERDA will fail.  He points out problems that have been observed in Germany in the following slide.

The CLCPA will also affect the way we cook.  The usual suspects have been vilifying natural gas stoves and the presentation addresses this component of the net-zero transition.   He argues that the health impact claims are not worth the paper they are printed on and the tradeoff between benefits and costs is poor.

In order to explain why the Integration Analysis is fantasy he provides background information on the difference between power and energy and why capacity factors are important.  Ellenbogen repeatedly states that “I am not anti-renewable but you have to look at the numbers and be realistic”.  The power, energy, and capacity factor numbers affect the viability of a renewable energy powered electric grid.

He describes the analysis in the Scoping Plan for the CLCPA as fantasy.  The Power, energy, and capacity factor estimates in the Integration analysis are not realistic.  I love the description of the 20 GW of zero-carbon firm resource as “unicorn generation” because “you are as likely to see it as you are to see a unicorn.”  Everyone except Howarth and his acolytes believes that this zero-carbon firm resource is needed to address infrequent periods of extended low wind and solar resource availability.  The energy transition requires this new technology, but the State has unrealistic expectations for implementing it.

Ellenbogen’s presentation presents a rational alternative to the fantasies of the CLCPA implementation plan.  He looks at the electrical load necessary to replace the energy used for applications other than electric generation – heating, cooking, hot water, and transportation and concludes that on-site combustion of natural gas should have a role.  The Cornell study of energy storage shows a much higher estimate of amount needed and that increases costs significantly. 

For the cost of the storage needed you could build 6 or 7 nuclear plants that would produce dispatchable power and would last 60 years.  Wind and solar life expectancy is on the order of 20 years and batteries half of that which makes this transition strategy is much more expensive.  He notes that implementation costs are already starting to show up in rate cases and this will only continue.  His arguments for alternatives also point out that batteries will increase emissions until all the generation is zero-emissions.

Ellenbogen has refined his analysis over time.  I think his arguments to leave on-site combustion in place are particularly persuasive.  It is more efficient to use on-site generation.  He advocates for increased use of electric vehicles and allowing this generation frees up energy for them which means less generation is required.  He also recommends a pragmatic approach to reduce CO2 emissions from utility-scale co-generation.  The productivity in greenhouses increases substantially at higher CO2 levels and the CO2 is taken up by the plants.  I vaguely recall a plan to build greenhouses at the industrial park where the Micron chip fabrication plant is planned.  Using a co-generation power plant to provide the electricity needed by that facility, using the waste heat for fabrication processes, and supplying the CO2 to the greenhouses addresses multiple problems and reduces overall costs.

Finally, he makes recommendations to reduce personal utility costs and short- and long-term changes to the New York energy plan.  It is no surprise that energy efficiency is important for personal utility cost reductions.  For the energy plan he suggests the following short-term recommendations:

  1. Do not electrify buildings that run on natural gas,
  2. Focus heat pump deployment away from buildings that run on natural gas,
  3. Upgrade the grid infrastructure to support the electrification requirements,
  4. Increase support for electric vehicle infrastructure including grid support,
  5. Do not install large amounts of battery storage until renewable generation increases,
  6. Repower older generating plants with higher efficiency combined cycle natural gas units,
  7. Develop technologies other than electrolysis to generate green hydrogen,
  8. Focus natural gas resources on combined heat and power systems,
  9. Allow Micron to build a 2 GW combined cycle co-generation facility,
  10. Figure out how the utilities can install and interconnect the planned offshore wind,
  11. Set up pilot projects for greenhouse agriculture to ascertain values, and
  12. Authorize the establishment of pyrolysis projects for the elimination of plastic waste and organic waste and for generation of hydrogen that can be used to improve power plant efficiency.

In the long term he suggests adding 12 GW of nuclear to the generating system.

He concludes that New York should use common sense solutions to keep the lights on because when fantasies meet reality, reality always wins.  He notes that the CLCPA actually is hindering greenhouse gas emission efforts, risks reliability and will affect affordability. In the following slide he urges people to contact their State Senators and Assemblypersons to modify or repeal the CLCPA.

Q&A

If you are interested in the questions and answers they start at this point.  The session got heated when someone who subscribes to all of the CLCPA narrative talking points that Ellenbogen dismantled in his presentation asked why wind and solar alone can’t work and claimed nuclear has no place.  It got so bad that someone in the audience piped in and said if you cannot provide numbers supporting your position like Ellenbogen did then sit down because you wasting our time. 

Caveat

Ellenbogen has invested enormous time and energy into this presentation because of his personal conviction that the current plan is not a good idea.  He writes:

Keep in mind that I have no monetary interest in this but I have a huge problem with the questionable or deceptive at best, and  negligent at worst, science being used to justify these policies.  I have spent thousands of hours researching the details and have attended all of the meetings in Albany and elsewhere at my personal expense, both in time and money, as well as paying for the rental of the Picture House, along with John Ravitz.

Conclusion

Ellenbogen points out that the societal benefits are calculated as if New York is in a vacuum.  The fact is that completely eliminating New York greenhouse gas emissions will not have a meaningful effect on any of the impacts ascribed to climate change because the state’s total emissions are so small that they will be subsumed by emission increase elsewhere across the globe in a matter of weeks. He goes to great lengths so point out that he is not anti-renewable energy resources.  These points and others that disparage the CLCPA transition plan do not mean that we should not do something to reduce GHG emissions.  However, we should not “make up fantasies to justify it” or avoid honest conversations about how best to implement a transition to lower emissions.  It is time to honestly talk about the implications of this law.

Ellenbogen has the ear of many people at the agencies in Albany and unofficially they agree with his concerns.  Unfortunately, they are not in the position to say anything publicly because the CLCPA is a law and the agencies have been weaponized to support the political ambitions of the Administration in the last decade.  Speaking out of line with narrative is not a good career move for technical staff at the agencies.  Privately they admit that it will take a Texas-style blackout disaster to change the direction of the net-zero transition. The February 2021 Texas electric grid failure was the worst energy infrastructure failure in Texas history resulting in over 4.5 million homes and residences losing power in very cold weather, over 245 people dying and total damages of at least $195 billion. 

Remember that New York energy experts are warning that unless something is done this type of disaster is inevitable here. I prepared this summary of the presentation because I think it is important to educate New Yorkers.  I reiterate Ellenbogen’s recommendation: contact your State Senators and Assemblypersons to modify or repeal the CLCPA.  Contact the Governor’s Office so that the Administration gets the word that the loud environmental organizations are not the only ones concerned about this law.  Pass on this presentation to others who will be affected by this fantastical energy policy and encourage them to speak up.  It is too risky, we cannot afford it, and the plans are unsupportable.

Climate Act Misinformation: Cost Effectiveness Value of Societal Effects

Today I found a perfect example of Hochul Administration misinformation.  The New York State Energy Research & Development Authority (NYSEDA) Tier 4 renewable energy solicitation prepared Appendix C Cost Analysis document to support the petition by developers of four proposed offshore wind projects and 86 land-based renewable projects.   The claims made for the societal benefits of greenhouse gas emission reductions that are used to claim that various components of the net-zero transition mandated by the New York Climate Leadership & Community Protection Act (Climate Act) have greater benefits than costs are based on inaccurate methods.  This post explains the problem with the methodology used by New York State.

I have followed the Climate Act since it was first proposed, submitted comments on the Climate Act implementation plan, and have written over 350 articles about New York’s net-zero transition.  I have devoted a lot of time to the Climate Act because I believe the ambitions for a zero-emissions economy embodied in the Climate Act outstrip available renewable technology such that the net-zero transition will do more harm than good by increasing costs unacceptably, threatening electric system reliability, and causing significant unintended environmental impacts.  The opinions expressed in this post do not reflect the position of any of my previous employers or any other organization I have been associated with, these comments are mine alone.

Overview

The Climate Act established a New York “Net Zero” target (85% reduction and 15% offset of emissions) by 2050.  It includes an interim 2030 reduction target of a 40% reduction by 2030 and a requirement that all electricity generated be “zero-emissions” by 2040. The Climate Action Council (CAC) is responsible for preparing the Scoping Plan that outlines how to “achieve the State’s bold clean energy and climate agenda.”  In brief, that plan is to electrify everything possible using zero-emissions electricity. The Integration Analysis prepared by the New York State Energy Research and Development Authority (NYSERDA) and its consultants quantifies the impact of the electrification strategies.  That material was used to develop the Draft Scoping Plan.  After a year-long review, the Scoping Plan recommendations were finalized at the end of 2022.  In 2023 the Scoping Plan recommendations are supposed to be implemented through regulation and legislation. 

Obviously, it is important to consider whether the costs that will be incurred for the net-zero transition are lower than the benefits.  The Hochul Administration narrative claims that the costs of inaction for the net zero Climate Act transition outweigh the costs of action. I have been arguing for years that the statement is nothing more than a slogan and it is misleading because it does not include all the costs of the transition.  My analyses of costs found that there are several necessary program costs not included by the Administration. The benefits claimed are the focus of this post.  The analysis of the benefits that I submitted as a comment to the Scoping Plan shows that they over-estimated the benefits in several ways and incorrectly calculated the benefits.  The Climate Action Council never responded to my comments.  This post will summarize my comments and show the effect of the flawed methodology on the cost-effectiveness analyses in the Appendix C Cost Analysis document.

Societal Benefits

The NYSEDA Tier 4 renewable energy solicitation (“Tier 4 Solicitation”) awarded contracts for two transmission projects.  Clean Path New York (CPNY) and the Champlain Hudson Power Express (CHPE) The projects are:

Expected to deliver 18 million megawatt-hours of clean energy per year to New York City, or more than a third of the City’s annual consumption. During their construction and operation, the projects are expected to generate close to $6 billion in overall net societal benefits statewide, inclusive of greenhouse gas reductions and air quality improvements, and over $8 billion in economic development, including investments in disadvantaged communities.

I am only going to address the societal benefits of greenhouse gas reductions in this article.  For a complete discussion of societal benefits used to justify the Scoping Plan and these projects, I refer you to my Scoping Plan Benefits Comments.  I summarize  some of the details I provided for the greenhouse gas reduction benefits discussion below.

The largest benefits claimed for the Scoping Plan and the Tier 4 Solicitation are related to avoided societal costs from GHG emissions.  These benefits are calculated using the Social Cost of Carbon (SCC) or Value of Carbon.  This is a measure of the avoided costs for estimated global warming impacts out to the year 2300 resulting from a reduction of one ton of today’s emissions.  Models are used to project the benefits of reducing GHG emissions on future global warming impacts including those on agriculture, energy, and forestry, as well as sea-level rises, water resources, storms, biodiversity, cardiovascular and respiratory diseases, and vector-borne diseases (like malaria), and diarrhea. 

Richard Tol describes the value of greenhouse gas emission reductions thusly: “In sum, the causal chain from carbon dioxide emission to social cost of carbon is long, complex, and contingent on human decisions that are at least partly unrelated to climate policy. The social cost of carbon is, at least in part, also the social cost of underinvestment in infectious disease, the social cost of institutional failure in coastal countries, and so on.”  Clearly, the Social Cost of Carbon price is subject to value judgements. It is strongly affected by the choice of impacts included and by the assumptions made for the discount rate.  New York’s choices all maximize the value used.      

Flawed Methodology

The methodology used by New York agencies to calculate societal benefits relies on the New York Department of Environmental Conservation Value of Avoided Carbon GuidanceThe Guidance includes a recommendation how to estimate emission reduction benefits.  In the section entitled “Estimating the emission reduction benefits of a plan or goal” an example is included that states:

The net present value of the plan is equal to the cumulative benefit of the emission reductions that happened each year (adjusted for the discount rate). In other words, the value of carbon is applied to each year, based on the reduction from the no action case, 100,000 tons in this case. The Appendix provides the value of carbon for each year. For example, the social cost of carbon dioxide in 2021 at a 2% discount rate is $127 per metric ton. The value of the reductions in 2021 are equal to $127 times 5,000 metric tons, or $635,000; in 2022 $129 times 10,000 tons, etc. This calculation would be carried out for each year and for each discount rate of interest.

I believe that the guidance approach is wrong because it applies the social cost multiple times for each ton reduced.  It is inappropriate to claim the cumulative benefits of an annual reduction of a ton of greenhouse gas over any lifetime or to compare it with avoided emissions. The value of carbon for an emission reduction is based on all the damage that occur from the year that ton of carbon is reduced out to 2300.  Clearly, using cumulative values for this parameter is incorrect because it counts those values over and over.  I contacted social cost of carbon expert Dr. Richard Tol about my interpretation of the use of lifetime savings and he confirmed that “The SCC should not be compared to life-time savings or life-time costs (unless the project life is one year)”. 

For the record I have made this argument in several different proceedings and with one exception my comments have been ignored.  I pushed for an explanation long enough for the comment that I submitted on the Value of Avoided Carbon Guidance that I did get a response.  There wasn’t any explanation why Dr. Tol and I were wrong.  The reason was “We ultimately decided to stay with the recommendation of applying the Value of Carbon as described in the guidance as that is consistent with how it is applied in benefit-cost analyses at the state and federal level.”

Impact on Claimed Benefits

Appendix C to the Tier 4 Petition describes how the societal benefits were calculated.  It states: “net carbon value provided by the Project is quantified as the difference in carbon emissions between the scenarios with and without Tier 4 on an annual basis, multiplied by respective the social cost of carbon (SCC) per ton of carbon emissions”.  In other words, they used models to project the GHG emissions with and without the Tier 4 projects and then multiplied the difference in emissions by the SCC value.  To their credit they do make a conservative assumption: “Both scenarios are set up in the analysis to achieve New York’s goal of 100% carbon-free generation by 2040, so by 2040 the difference in carbon emissions between the two scenarios reduces to zero.”

Using this methodology, the Public Service Commission Order Approving Contracts for Purchase of Tier 4 RECs claims that:

NYSERDA and Staff estimate that the combination of the CPNY and HQUS projects would provide a societal benefit of between $2.3 and $5.8 billion, using a net present value based on 2021 dollars.

There is no documentation that lists the annual emission reduction projections used and which SCC values were used so I cannot reproduce their estimates.  I made an estimate of the societal benefits of these two Tier 4 transmission projects.  The NYSEDA Tier 4 renewable energy solicitation claims that the projects will “deliver 18 million megawatt-hours of clean energy” per year.   Assuming this energy displaces electric generating units that in 2022 emitted CO2 at a rate of 0.51 tons per MWH, I calculate an emission reduction of 8.35 million metric tons.  Using the 2030 value of carbon at a 3% discount rate the societal benefit is $0.53 billion which is an order of magnitude less than the higher societal benefit claimed.

Conclusion

This post re-iterates a point that I have been making for years.  The Hochul Administration has contrived higher estimates for societal greenhouse gas emission benefits to the point where their valuation is much higher than other jurisdictions.  This manipulation has not been sufficient to “prove” that societal benefits were greater than the costs for various Climate Act transition programs.  To maximize benefits, the State inappropriately applies the Social Cost of Carbon to multiple years rather than once.  This is akin to saying that because I lost five pounds ten years ago I can claim that I lost 50 pounds.  The advocates of the Climate Act transition are the first to claim that they “follow the science” but the reality is that the biased analyses, selective choice of assumptions, and dodgy calculation methods represent misinformation of the highest order.

Articles of Note November 26, 2023

Sometimes I just don’t have time to put together an article about specific posts I have read about the net-zero transition and climate change that I think are relevant.  This is a summary of posts that I think would be of interest to my readers.

I have been following the Climate Leadership & Community Protection Act (Climate Act) since it was first proposed and most of the articles described are related to it. I have devoted a lot of time to the Climate Act because I believe the ambitions for a zero-emissions economy embodied in the Climate Act outstrip available renewable technology such that the net-zero transition will do more harm than good. The opinions expressed in this article do not reflect the position of any of my previous employers or any other company I have been associated with, these comments are mine alone.

Videos

Here are links to some interesting videos:

Mark Mills gives a lecture titled Green energy – folly or the future?

Scott Tinker An Honest & Sensible Conversation about Global Energy

Mike Shellenberger A Pro-Human Environmental Policy

Bjorn Lomborg How to fix climate change. But Smartly.

Climate Discussion Nexus – Sea Level Change

Failed Projections

Andrew Follett writes in the National Review that We’ve Had Six Years Left to Save the World for the Past 50 Years.  Follett describes numerous examples of failed predictions of the apocalypse such as “Harvard biologist George Wald warning shortly before the first Earth Day in 1970 that civilization would end within 15 to 30 years ‘unless immediate action is taken against problems facing mankind’.”  He concludes:

The Washington Post may not remember the drumbeat of failed predictions made by environmentalists over the course of the past half century, but apocalyptic rhetoric is nothing new in the cultlike echo chamber of eco-activists and extremist environmental-science scholars. Countless predictions that the end is nigh have been around for the past several decades. Don’t give away all your savings just yet.

What Will it Take?

A frequent topic of conversation I have with people who understand the electric system is when will the madness of this deeply flawed reckless transformation of the electric system fall apart.  Francis Menton at the Manhattan Contrarian has been writing about the inevitable collision of zero-emissions dreams with reality for a couple of years.  His latest article points out that elections in Argentina and Holland featured wins by politicians who do not subscribe to the insanity.  Neither has enough support to ensure a reversal but it is an encouraging sign.  The other notable event is that investors are not investing in sustainable stocks and funds as they once did.  It is turning out that even with government subsidies that wind and solar projects are not making profits.  He concludes:

The best thing to end the wind/solar craziness will be to have one or two jurisdictions fail spectacularly as a lesson to everyone else.  I wouldn’t have wanted my own New York to volunteer for that role, but that may be what’s happening.

If Renewables are so Cheap?

Kevin Roche explains the problem.  If renewable energy is so supposedly cheap, why does it take such huge subsidies to produce it?  For the record I don’t think the subsidies shown in include the costs for energy storage required when the wind is not blowing and the sun is not shining, the magical dispatchable emissions-free resource needed when there are extended periods of low renewable resource availability, and all the ancillary transmission support services not provided by wind and solar generation.

State Differences In Energy Costs

In addition to infeasibility the energy transition will certainly raise costs.  This article documents the difference between states that have green energy mandates and those that do not.  Seven of the top eight continental states (including New York} in terms of highest average retail electricity prices in 2023 have some sort of green energy mandates.  “The differences in electricity costs are stark, with the costs of a kilowatt hour in California, Massachusetts, Rhode Island and Connecticut more than doubling the costs of the same unit in states like Idaho, Wyoming, Utah and Oklahoma” that do not have mandates.

Fifth National Climate Assessment

Climate Discussion Nexus – If Only They Were Just in It For The Money:

The Manhattan Contrarian offers a skeptical look at America’s new “Fifth National Climate Assessment” produced by a bureaucratic hydra consisting of 14 major agencies all united in believing that humanity is setting the sky on fire and the only way to stop it is for all 14 of them to get a whole lot more money. But while the problem of asking bureaucracies whose existence depends on there being a climate crisis to investigate whether there is a climate crisis is obvious enough, an even deeper problem is what happens when those bureaucracies turn to known zealots to do the writing. After all, if the corruption were merely mercenary we could, in principle, bribe them to dismiss the alarm as a hoax, in the unlikely event skeptics could ever raise the necessary funds. But at its core this crowd isn’t interested in money or, for that matter, science. As Roger Pielke Jr. exclaimed in irritation “How did Project Drawdown, The Nature Conservancy and Stripe get to write the overview chapter on climate for the US NCA?” Everyone would object, he notes, if people from known skeptical organizations were put in charge of the writing process. Yet when employees of climate advocacy organizations are handed control over the writing process we are supposed to pretend the result will be anything other than propaganda.

Making Sense of the Politics of Extreme Climate Projections

Roger Pielke Jr. describes the dynamics behind climate policy analyses in an article related to the previous one.  He describes recent work that you will not hear in the mainstream media because it indicates that the worst-case projections relied on as rationale for the Climate Act are less likely.  This does not mean that we should not do something, but it reinforces my belief that we have time to make sure that the net-zero transition policies will not do more harm than good.

Yet Another issue with Offshore Wind

In order to build the offshore wind facilities necessary for the Climate Act transition, an entire industry has to be developed.  It is not just making the turbine blades and the supporting structures but also the construction equipment to install everything.  To complicate things more, the Jones Act requires that the equipment shipped out of US ports be transported on ships built, owned, and operated by US citizens and that complicates offshore wind construction.  This article explains that the “arms race” among manufacturers to build ever bigger offshore wind turbines means that the ship builders have issues.  They build for one size and somebody wants to install an even bigger one by the time the ship starts work.  “We will get to a certain point where there is a limit,” he said, “purely due to practicality.”

Zero-Emissions Electric System Demonstration of Feasibility

I believe that single biggest flaw in the Climate Leadership & Community Protection Act (Climate Act) net zero transition is the failure to include a feasibility analysis.   I agree with Francis Menton, the Manhattan Contrarian, that the ultimate test would be a demonstration project to determine the feasibility of a fully wind/solar/battery electric generation system.  This post describes a series of articles by Ed A. Reid, Jr. at the Right Insight blog describing what he believes should be included in a grid-scale demonstration project.

I have followed the Climate Act since it was first proposed, submitted comments on the Climate Act implementation plan, and have written over 350 articles about New York’s net-zero transition.  I have devoted a lot of time to the Climate Act because I believe the ambitions for a zero-emissions economy embodied in the Climate Act outstrip available renewable technology such that the net-zero transition will do more harm than good by increasing costs unacceptably, threatening electric system reliability, and causing significant unintended environmental impacts.  The opinions expressed in this post do not reflect the position of any of my previous employers or any other organization I have been associated with, these comments are mine alone.

Overview

The Climate Act established a New York “Net Zero” target (85% reduction and 15% offset of emissions) by 2050.  It includes an interim 2030 reduction target of a 40% reduction by 2030 and a requirement that all electricity generated be “zero-emissions” by 2040. The Climate Action Council (CAC) is responsible for preparing the Scoping Plan that outlines how to “achieve the State’s bold clean energy and climate agenda.”  In brief, that plan is to electrify everything possible using zero-emissions electricity. The Integration Analysis prepared by the New York State Energy Research and Development Authority (NYSERDA) and its consultants quantifies the impact of the electrification strategies.  That material was used to develop the Draft Scoping Plan.  After a year-long review, the Scoping Plan recommendations were finalized at the end of 2022.  In 2023 the Scoping Plan recommendations are supposed to be implemented through regulation, PSC orders, and legislation. 

The Problem

In my opinion a feasibility analysis that addresses reliability, affordability, and cumulative environmental impacts should be a prerequisite for the proposed changes to the New York energy plan.  State leaders claim that the Scoping Plan is sufficient, but I disagree.  The Scoping Plan lists various control strategies that it claims meets the Climate Act requirements but no where does it document the expected costs, emission reductions, and assumption for the components of the control strategies in sufficient detail to verify the total costs necessary to determine expected costs to New Yorkers.  It does not even include projected ratepayer costs or an affordability standard.  Even though Climate Action Council members claimed that the Scoping Plan adequately addressed reliability, and some went so far as to say that no new technology was needed, the reality is that the New York Independent System Operator (NYISO) has raised many unaddressed reliability issues.  Furthermore, the NYISO, the Integration Analysis and the New York State Public Service Commission (PSC) agree to the need to “identify innovative technologies to ensure reliability of a zero-emissions electric grid”.  The most recent cumulative environmental impact assessment does not include between 20% and 40% more onshore wind, about twice as much offshore wind, and over three times as much distributed and utility-scale solar projected in the Scoping Plan.  In addition, no previous cumulative environmental impact analysis considered the impacts of massive energy storage facilities or the “zero-carbon firm resource” that the Integrated Analysis presumes will be provided by hydrogen resources. 

The NYISO is responsible for keeping the lights on in New York.  They have a very sophisticated resource adequacy modeling process and are required to provide regular reliability assessments.  There are staff dedicated to addressing those requirements and I have a lot of respect for their skill and body of knowledge.  They have been analyzing the electric system for many years and have a great understanding of the current electric system.  However, I have enough modeling experience and background to still be skeptical that the existing resource adequacy process will be able to address all the inter-related components and unintended consequences of the transition to an electric system that relies on weather-dependent and inverter-based resources.  As a result, I worry that some combination of circumstances will occur that causes unexpected reactions that will result in blackouts despite their best efforts.  We know that an electric grid that relies on nuclear and hydro “zero-emissions” resources will work.  What is needed is a demonstration project that can be used to test whether wind, solar, and energy storage resources can work and refine the resource adequacy modeling to address those resources.

Reid’s Renewable Demonstration

Ed Reid agrees with this need and writes “I believe it is essential that at least one large scale demonstration of a completely freestanding renewable plus storage powered grid be conducted under carefully controlled conditions.”  Even if such a project was implemented, he points out an important caveat: the long duration storage or alternative “zero-carbon firm resource” cannot be tested because neither resource is currently commercially available.

He proposes a demonstration for a selected zone within the grid. His proposal would only consider sources within the zone isolated from external sources of power and incorporate storage initially using “pseudo-storage” by tracking exports from the isolated zone and what is needed from outside the isolated zone. He suggests an iterative development process whereby:

The demonstration managers would be able to import electricity from external sources if required to avoid demonstration grid failure but would then be required to install additional generation capacity or contract for more pseudo-storage to avoid a repeat of the imminent grid failure condition. The demonstration managers should not be permitted to deliver electricity outside the demonstration zone, other than to pseudo-storage.

His first demonstration project article concludes:

It might be ideal to site the demonstration zone in the metropolitan Washington, DC area to assist agencies of the federal government and federal legislators to understand the various issues with a renewable plus storage grid in real time and work to resolve them in a timely fashion.

In the next article Reid argues that transparency should be a key component of the demonstration.  He proposes that the first step be complete documentation describing the generation and energy storage resources within the demonstration zone.  He goes on to explain:

The next step in the process would be the initial design of the renewable plus storage system to replace the existing conventional, dispatchable fossil generation resources. This would include designation of the types and capacities of the wind and solar generators, plus designation of the capacities and delivery rates of short, intermediate and long duration storage to be installed or simulated by pseudo-storage.

After a period of testing, the wind, solar, and energy storage resources “would be used to meet the contemporaneous demand of the grid and to charge both actual and pseudo-storage”.  The reporting system would track all the generation and energy usage.  He suggests that in order to address the affordability component that “all renewable generation and storage resources installed in the demonstration zone be capitalized at their full cost, with no federal or state incentives of any kind”.  

Market costs also must be tracked. 

He concludes the second article:

These approaches to the demonstration should assure that the demonstration zone facilities would be designed to be a reliable and flexible renewable electric system and that the electricity costs in the demonstration zone would representative of a renewable plus storage grid on a national scale.      

The third article suggests a reporting format for the renewable plus storage demonstration proposed.  If you are interested in those details, I refer you to the article.

The fourth article raises an important point about the ultimate viability of renewable energy plus storage electric system.  Climate Act accounting requirements mandate that fossil-fired generating resources include upstream emissions.  Reid points out that a true “zero-emissions” electric system should also eliminate emissions in the supply chain.  He argues:

The supply chain begins with the use of electric mining equipment to mine the raw materials required to fabricate the wind, solar and storage components of the renewable plus storage grid in US mines and the use of electric transportation to move these raw materials to the manufacturing facilities at which the components of the system would be fabricated. The fabrication of the components would occur in US plants using electric processing equipment.

The steel and cement required for installation of the system components would also be produced in US plants. In the case of the calcining of limestone to produce cement, carbon capture and storage (CCS) systems would be required to capture the CO2 released from the limestone.

Preparation of the installation sites for the wind and solar generators and the storage systems would be performed by US manufactured electric earthmoving equipment. The system components would be transported to the installation sites by US manufactured electric trucks or electrified trains and erected using US manufactured electric cranes.

Considering supply chain emissions introduces much more complexity.  He argues that all the claims about clean energy job creation ignore the current reality that the “current supply chains for wind turbines, solar collectors and storage batteries, all of which currently require mining and processing of minerals in Asia and Africa and frequently rely on foreign manufacture, particularly of solar collectors and wind turbines” has many jobs outside of the United States.  My concern is that it is not only the jobs but also there are lower environmental and safety considerations.  Finally, there is a moral aspect because the “mining and processing jobs in Asia and Africa and the manufacturing jobs in Asia reputedly rely on child, forced and prison labor”.

Conclusion

I think there is a clear need for a feasibility demonstration project.  Attempting to convert the current electric system that has evolved over decades to a system relying on significantly different resources by 2040 is such an enormous challenge that I think it is inappropriate to rely on modeling to check feasibility.  Reid describes a feasibility demonstration on a utility-scale.  Menton has argued for a smaller project:

Before embarking on “net zero” for a billion people, how about trying it out in a place with, say, 10,000, or 50,000, or 100,000 people.  See if it can actually work, and how much it will cost.  Then, if it works at reasonable cost, start expanding it.

While there are some large jurisdictions that have achieved very low-carbon grids, they did not do so by relying on underperforming intermittent wind and solar generation.  Instead, they achieved low emissions by using high-capacity-factor firm resources—namely hydropower and nuclear. To my knowledge no jurisdiction has demonstrated the ability to achieve “zero-emissions” using wind, solar, and energy storage.  Ideally a large-scale test such as the one proposed by Reid should be done before New York goes any further.  However, I think that even the small-scale demonstration proposed by Menton would show that the Climate Act “zero-emissions” electric system is infeasible on reliability and affordability grounds.

I believe that the fatal flaw of all “green” technologies is that they do not work all the time.  “On average”, “in general”, or for “many people”, it may be possible to argue that electric vehicles, heat pumps, or renewable generation technologies are feasible.  However, when the criteria are raised to include 24-7, 365 reliability and overall affordability with all the hidden costs included, then these technologies fail to deliver.  The only way I will be convinced otherwise is if there is a demonstration project that proves otherwise.

America’s Largest-Ever Investment in Renewable Energy

On October 24, 2023, Governor Kathy Hochul announced “the largest state investment in renewable energy in United States history” including three offshore wind and 22 land-based renewable energy projects “totaling 6.4 gigawatts of clean energy, enough to power 2.6 million New York homes and deliver approximately 12 percent of New York’s electricity needs once completed.” These projections are needed to implement the New York Climate Leadership & Community Protection Act (Climate Act).  This post looks behind the hype and what it really means.

I have followed the Climate Act since it was first proposed, submitted comments on the Climate Act implementation plan, and have written over 350 articles about New York’s net-zero transition.  I have devoted a lot of time to the Climate Act because I believe the ambitions for a zero-emissions economy embodied in the Climate Act outstrip available renewable technology such that the net-zero transition will do more harm than good by increasing costs unacceptably, threatening electric system reliability, and causing significant unintended environmental impacts.  The opinions expressed in this post do not reflect the position of any of my previous employers or any other organization I have been associated with, these comments are mine alone.

Overview

The Climate Act established a New York “Net Zero” target (85% reduction and 15% offset of emissions) by 2050.  It includes an interim 2030 reduction target of a 40% reduction by 2030 and a requirement that all electricity generated be “zero-emissions” by 2040. The Climate Action Council (CAC) is responsible for preparing the Scoping Plan that outlines how to “achieve the State’s bold clean energy and climate agenda.”  In brief, that plan is to electrify everything possible using zero-emissions electricity. The Integration Analysis prepared by the New York State Energy Research and Development Authority (NYSERDA) and its consultants quantifies the impact of the electrification strategies.  That material was used to develop the Draft Scoping Plan.  After a year-long review, the Scoping Plan recommendations were finalized at the end of 2022.  In 2023 the Scoping Plan recommendations are supposed to be implemented through regulation and legislation.  In addition, New York must contract with developers to provide the enormous wind and solar resources necessary for a zero-emission grid.

If it’s failing, double down

One of the rules Irina Slav  argues that the net-zero transition leadership climate crusaders follow is  “If it’s failing, double down”.  New York’s transition has not reached the point where we have performance data that shows that renewables cannot deliver the promises of Climate Act advocates.  However, Hochul’s announcement for more new contracted projects when existing projects under development have begged for renegotiation  is a perfect example of this rule.

In mid-October the Public Service Commission denied requests by European energy firms Orsted, Equinor, BP and other renewable developers to charge customers billions of dollars more under future power sale contracts for four offshore wind and 86 land-based renewable projects.  “These projects must be financially sustainable to proceed,” Molly Morris, president of Equinor Renewables Americas, told Reuters, noting Equinor and BP will “assess the impact of the state’s decision on these projects.”   Soon thereafter Governor Hochul announced a “10-Point Action Plan to Expand the Renewable Energy Industry and Support High-Quality Clean Jobs in New York State”.  A couple of weeks later New York State Energy Research & Development Authority (NYSERDA)  described  what was included in the doubling down “largest-ever investment in renewable energy”.  According to the announcement, “Three offshore wind and 22 land-based renewable energy projects totaling 6.4 gigawatts will power 2.6 million New York homes and deliver 12% of New York’s electricity needs in 2030”.  This post unpacks these claims and looks at the projects themselves.

Offshore Wind Projects

The NYSERDA offshore wind project page describes the results of NYSERDA’s third competitive offshore wind solicitation:

NYSERDA provisionally awarded three projects totaling 4,032 MW, enough to power 2 million homes: Attentive Energy One (developed by TotalEnergies, Rise Light & Power, and Corio Generation), Community Offshore Wind (developed by RWE Offshore Renewables and National Grid Ventures), and Excelsior Wind (developed by Vineyard Offshore).

There is no question that this project award is a key component of the net-zero transition.  One of the legal mandates of the Climate Act is 9,000 MW of offshore wind by 2035.  The Scoping Plan Integration Analysis projects offshore wind capacity of 6,200 MW by 2030 and 9,000 MW by 2035. The capacity in these projects is 45% of the mandate.  NYSERDA claims these projects are supposed to provide about ten percent of New York’s electricity load, but I estimate that the energy produced is closer to 9% in 2030.

The Solicitation Awards Fact Sheet explains that the combined portfolio of projects is expected to:

  • Generate enough renewable, locally-produced energy to power more than 2 million homes, or approximately 10 percent of New York’s electricity load.
  • Deliver $3.4 billion in commitments to Disadvantaged Communities, in alignment with New York’s Climate Act goals.
  • Contribute more than $85 million to support wildlife and fisheries research, mitigation, and enhancement.
  • Deliver over $100 million to training New York’s workforce to build and service offshore wind projects.
  • Commit nearly $300 million to Minority and Women Owned Business Enterprises (MWBEs) and Service-Disabled Veteran Owned Businesses (SDVOBs).
  • Reduce greenhouse gas emissions by 7 million metric tons annually, the equivalent of taking over 1.6 million cars off the road every year.
  • Provide billions of dollars in public health benefits resulting from reduced exposure to harmful pollutants—including fewer episodes of illness and premature death, fewer days of school or work missed, less disruption of business, and lower health care costs.
  • Commit to purchase more than $500 million in U.S. iron and steel and to include Project Labor Agreements, labor peace agreements, and prevailing wages.

The expectations for these projects cover a wide range of benefits to favored constituencies.  The Climate Act mandates that at least 35% of the investments support Disadvantaged Communities but just how that is calculated is unresolved.  I worry that funding the transition is going to be expensive enough without diluting the efficiency with this type of mandate.  I wish I could say that the $85 million to support wildlife and fisheries research will cover the costs to monitor the effect of construction on whales but I am not optimistic that will be the case.  There is no question that the trades workforce has to be expanded for all the construction projects, but I am not sure throwing money at it is going to create incentives for people to choose those careers.  The money towards specific businesses is transparent pandering to a political constituency and increases the difficulties of the transition. NYSERDA claims 7 million metric tons of reductions per year, but I estimate 3.9 million metric tons.  The claim for billions of public health benefits does not stand up to scrutiny.  The final $500 million commitment is another transparent appeal to a political constituency, this time organized labor.

The NYSERDA 2022 solicitation page provides information about costs to New Yorkers:

All three projects are anticipated to enter commercial operation by 2030. The average bill impact for customers over the life of the projects will be approximately 2.73 percent, or about $2.93 per month. The weighted average strike price of the awarded offshore wind projects over the life of the contracts is $96.72 per megawatt hour in 2023 (real) dollars, which equates to a nominal weighted average strike price of $145.07 per megawatt hour. The strike prices comprising the weighted average cited above are subject to certain adjustments in accordance with the terms of the awarded contracts, including, in some cases, adjustments based on certain price indices, interconnection costs and/or receipt of qualifying federal support.

The $2.93 for these offshore wind resources needed for the net-zero transition does not tell the whole cost impact story.  The Hochul Administration has not owned up to the costs for all the other offshore projects, or the costs for the onshore wind resources, solar energy resources, the energy storage resources, and the dispatchable emissions-free resources that make up the supply component of future electric bills.  Nor have they explained the cost impacts on the delivery component costs of future electric bills that will be needed to pay for the transmission and distribution electric system upgrades needed to get the renewable energy where it is needed. 

The offshore wind industry is new and requires development of infrastructure and supply chain support.  The announcement also includes this: 

Delivering on Governor Hochul’s commitment to make New York State a hub for the U.S. offshore wind supply chain, this procurement includes continued support for offshore wind turbine manufacturing, which leverages over $2 in privately committed capital for every $1 of New York public funding.

NYSERDA is also awarding $300 million in state investment to enable the development of two supply chain facilities including nacelle manufacturing and assembly by GE Vernova, along with blade manufacturing developed by LM Wind Power Blades USA, both planned for New York’s Capital Region. This investment has the capacity to supply almost one-third of the total regional demand for offshore wind by 2035, which will unlock $968 million in public and private funding, create 1,700 direct and indirect jobs backed by prevailing wage and project labor agreements, and result in over $3 billion in direct spending in the State. Additionally, these projects also align with available federal tax credits, enabling future savings to New York’s ratepayers.

This is another buried cost of the Climate Act transition.  They brag that they are leveraging over $2 in privately committed capital for every $1 of New York public funding.  I see that as a 33% subsidy.  The rest of the discussion is another example of political pandering.

New York’s Land-Based Renewable Energy Procurement

The NYSERDA announcement also described other projects included in the procurement:

In addition, New York also announced its latest round of conditional land-based large-scale renewable awards, which are comprised of 14 new solar projects, six wind repowering projects, one new wind project, and one return-to-service hydroelectric project, totaling a combined 2,410 megawatts – enough new renewable generation to power over 560,000 New York homes annually for at least 20 years. These projects are expected to spur over $4 billion in direct investments and create over 4,100 good-paying short- and long-term jobs across New York State.

As shown in the following table there are four sets of projects in the procurement.  There are 14 solar projects totaling 1,495 MW, six wind project repowering projects totaling 612 MW, a new 298 MW wind project, and a 5 MW hydropower project.

The Large-scale Renewables 2022 Renewable Energy Standard Solicitation summary states:

NYSERDA awarded 22 large-scale renewable energy projects from the 2022 Renewable Energy Standard solicitation. The awarded projects are located throughout New York, including one paired with a utility-scale energy storage facility. Planned to be operational by 2028, these projects are expected to spur over $4 billion of direct investment and will create more than 4,100 short- and long-term jobs in development, construction, and operations and maintenance. Payments under these awards will not commence until projects have begun commercial operation after having obtained all required permits and local approvals.

The description of these projects leaves out some relevant points.  These awards do not guarantee the projects will be built because not all the projects have completed applications and given the volatility of the supply chains and inflation the developers may decide not to proceed if they think they cannot make money.  All these are intermittent sources and require energy storage to guarantee that the energy can be used when it is needed.  Of the total of 2,410 MW proposed the only energy storage facility included is only for 20 MW capacity and I could not find out how much energy (MW-hours) were planned.  Somebody else is going to have to subsidize these projects for the energy storage necessary to keep the lights on.  The description talks about the direct investments and job creation but neglects to point out that the largest solar project is not in New York State so the job creation does not accrue to New York.

The Solicitation summary goes on to claim:

As these projects proceed, NYSERDA will continue to work with their developers, other State agencies, and stakeholders to preserve and protect New York’s valuable agricultural and environmental resources as part of the project development process. Once operational, these projects will add 2,410 megawatts of new renewable capacity and are expected to generate enough clean energy to power more than 560,000 homes each year and reduce carbon emissions by more than 2 million metric tons annually, the equivalent to taking over 440,000 cars off the road every year.

The claim that NYSERDA will work with the developers to “preserve and protect New York’s valuable agricultural and environmental resources as part of the project development process is a hollow gesture.  As I have said many times there is no implementation plan that formally protects those resources and until a plan that explicitly protects farmland and cumulative environmental resources is implemented this is all just talk.  My estimate of the carbon dioxide reduction is consistent with the 2 million metric ton projection.  Finally, note that these projects will provide 3.1% of the expected load in 2030.

Finally, the cost impacts are described:

The average bill impact for customers over the life of the projects will be approximately 0.31 percent, or about $0.32 per month. The weighted average strike price of the awarded projects over the life of the contracts is $60.93 per megawatt hour in 2023 (real) dollars, which equates to a nominal weighted average strike price of $80.96 per megawatt hour. The strike prices comprising the weighted averages cited above are subject to certain adjustments in accordance with the terms of the awarded contracts based on certain price indices

There is a ramification of the six wind repowering projects that affect 612 MW of capacity.  All six projects came online in 2008.  I found a description that said:

Operational since 2009, Altona Wind is a project to which AES is excited to bring new life. The repowering of the wind park will incorporate significant component and control systems replacement with design improvements, resulting in greater energy production and improved energy reliability and availability. Repowering will ensure continued, significant economic benefits to the local community via HCA (Host Community Agreements) and PILOT (Payments in Lieu of Taxes) agreements.

This is notable because the Integration Analysis did not retire any of the existing wind resources in its projections.  It appears that the total costs out to 2050 should include repowering costs every 15 to 20 years.  The failure to incorporate that nuance means that the cost projections that NYSERDA claims show that benefits outweigh the costs are biased low.

Conclusion

The political theater associated with the “largest state investment in renewable energy in United States history” hides real problems. My experience with every aspect of the Climate Act is that detailed examination uncovers more uncertainty related to reliability.  A key consideration renewable resources is energy storage but only one of the 22 projects included any energy storage (20 MW of storage to 2,410 MW of generating capacity with no estimate of energy ,MWh, storage capability). There is no feasibility analysis that demonstrates that the current approach will work.  Instead, the only plan appears to be contract for as many resources as possible and hope it all works.  Coupled with the aspects of the transition plan that are designed to appeal to particular political constituencies regardless of their effectiveness relative to the transition, this approach is doomed.

My other concern is costs.  To their credit the announcements did include an expected cost to consumers totaling $3.25 per month for 12% of the energy needs in 2030. Assuming the costs for the remaining energy needs are the same, the increase in costs jumps to over $27 per month just for energy supply.  The Hochul Administration has never provided all the costs to consumers for the Climate Act or provided details of the costs and expected emission reductions associated with the Scoping Plan control strategies.  I have found that the Integration Analysis used to develop the Scoping Plan assumed that renewable development costs would decrease over time.  Recent events have shown that is not happening.  In addition, the fact that a renewable developer has a contract to repower wind turbines demonstrates that the Integration Analysis presumption that replacements out to 2050 were not needed is wrong.  Therefore, the costs will be much higher than claimed.

Despite the lack of a feasibility analysis and the flawed cost estimates the Hochul Administration is racing ahead doubling down that someday the reliability issues will be resolved and the costs will fall.  I think the New York electric system is headed to a reliability and affordability crisis.

City & State’s Clean Energy Summit

I attended City & State’s Clean Energy in New York Summit – New York’s Path to Sustainability (the “Summit”) on November 16, 2023 with Francis Menton author of the Manhattan Contrarian blog.  The summit was organized “to discuss opportunities that NY’s ambitious energy strategy created for new investment” and the two of us were the only ones who were skeptical of the whole business.  This post compares Menton’s description of the meeting and the “official” description with my personal observations.

The only reason for the Summit is the Climate Leadership & Community Protection Act (Climate Act).  I have followed the Climate Act since it was first proposed, submitted comments on the Climate Act implementation plan, and have written over 350 articles about New York’s net-zero transition.  I have devoted a lot of time to the Climate Act because I believe the ambitions for a zero-emissions economy embodied in the Climate Act outstrip available renewable technology such that the net-zero transition will do more harm than good by increasing costs unacceptably, threatening electric system reliability, and causing significant unintended environmental impacts.  The opinions expressed in this post do not reflect the position of any of my previous employers or any other organization I have been associated with, these comments are mine alone.

Overview

The Climate Act established a New York “Net Zero” target (85% reduction and 15% offset of emissions) by 2050.  It includes an interim 2030 reduction target of a 40% reduction by 2030 and a requirement that all electricity generated be “zero-emissions” by 2040. The Climate Action Council (CAC) is responsible for preparing the Scoping Plan that outlines how to “achieve the State’s bold clean energy and climate agenda.”  In brief, that plan is to electrify everything possible using zero-emissions electricity. The Integration Analysis prepared by the New York State Energy Research and Development Authority (NYSERDA) and its consultants quantifies the impact of the electrification strategies.  That material was used to develop the Draft Scoping Plan.  After a year-long review, the Scoping Plan recommendations were finalized at the end of 2022.  In 2023 the Scoping Plan recommendations are supposed to be implemented through regulation, PSC orders, and legislation. 

According to their webpage, “City & State is the premier media organization dedicated to covering New York’s local and state politics and policy. Our in-depth, non-partisan coverage serves New York’s leaders every day as a trusted guide to the issues impacting New York.” The Summit was billed as: their “first ever Clean Energy in NY Summit to discuss opportunities that NY’s ambitious energy strategy created for new investment.”  The description went on: “Panels will focus on large-scale renewable projects; the future of large-scale renewable procurement activity both onshore and offshore; the financial incentives to develop resources in vulnerable communities; as well as the emerging activity in hydrogen hubs, transportation decarbonization, and the state’s very active storage procurement market.”  In my opinion “non-partisan” coverage would make a concerted attempt to balance the enthusiasm of proponents of the new investment with some recognition of the challenges of the proposed transition but there were very few of that type of questions for the panelists.

I characterize this as a pep rally for the true believers and climate grifter industry.  The slick booklet containing the program for the Summit outlined the program, included speaker biographies, and included advertising blurbs for the sponsors.  A comparison of the sponsors and participant panelists, moderators, and remarks made by sponsors confirms that participants were chosen mostly based on sponsorship.  Ony the New York State Laborers Union, Anbaric transmission developers, and the New York renewable trade group Alliance for Clean Energy Solutions New York sponsors did not participate in the Summit.  The remaining participants were from New York State agencies, New York City agencies, other renewable developers, media representatives, or politicians.

This post will describe the “official” version of the meeting with Menton’s description and my thoughts.

City & State Overview

The meeting program had a keynote address and five panels.  The panels included “New York’s Path to Achieve its Clean Energy Goals”, Leading the Way in Offshore Wind”, “Achieving Climate Smart Communities”, “New York’s Energy: Impact, Economic Development + Workforce”, and “Protecting New York from Climate Threats and Reducing Carbon Emissions”.  There were four opportunities for “remarks” that gave the sponsors an opportunity to give their spiels and an inordinate amount of time was spent going over the panelist backgrounds.  As as a result there was little meat in the panel discussions.

The City & State description of the meeting gives a good flavor of the meeting.  The article states:

Clint Plummer, the CEO of Rise Light & Power, led off the discussion on the city’s clean energy transition efforts by addressing Gov. Kathy Hochul’s 10-point action plan to tackle inflationary pressures on project implementation. “The administration of Gov. Kathy Hochul implemented a 10-point plan in which they are delivering on New York’s transition with major new clean energy projects and investments in the supply chain,” he said. “So we not only are able to deliver projects today, but we do it with jobs that are based right here in New York state. And we do it in a way that mitigates against the volatility of the global supply chain.”

A truly non-partisan summit would have raised questions about these claims.  There was very little discussion of the magnitude of the issues mentioned.  For example, the Rise Light & Power business model is to offer everything that superficially meets the net-zero transition resource development narrative that fits its business model and ignore all the other resources necessary for a reliable electric grid as somebody else’s problem.  His comments check all the boxes for the Hochul Administration narrative but did little else.

When he introduced Doreen Harris, he said there is “nobody I trust more” to lead the transition.  After watching the net-zero transition roll out over the last several years, I have the exact opposite view. She claimed that there is a plan for implementation, but the Scoping Plan is only a list of control strategies with no demonstration of feasibility.  She also referenced the 10-point plan saying: “Talk about a major commitment to clean energy that was made at a moment in which we need to demonstrate that commitment to action.”  She went on:

With investments in renewable infrastructure rising, Harris also addressed concerns over existing contracts. “The elephant in the room is what is going to happen with the existing contracts that we have,” she said. “I want you to know, very soon, you will see some next steps we’ll be taking to address the ultimate challenges that they face. The Public Service Commission’s denial of the industry petitions is one that we obviously reacted very quickly to, knowing that we need these projects to move forward, not only in an affordable way, but in a competitive way.”

Her reference to doing something very soon was the announcement later that day that the existing contracts would be put out to be re-bid.  I described this in a recent post concluding that allowing the contact costs to be revised guarantees that the costs will be increased substantially.  The primary reason I distrust Harris is her claim to be concerned about affordability because under her oversight of the Scoping Plan, there has not been a full accounting of costs, no admission of expected consumer costs, and no documentation of the current status of energy poverty in New York.  The only affordability response by Harris has been that the costs of inaction are more than the costs of action, which I have repeatedly shown is a misleading and inaccurate claim both in Scoping Plan comments that were never addressed and in articles on my blog.

Manhattan Contrarian Description

Francis Menton did not pull any punches describing his thoughts on the Summit.  I encourage everyone to read his account.  He correctly points out that none of the substantive issues associated with the net-zero transition were mentioned, much less considered.  He says it was “essentially all mindless happy talk.” 

Menton highlights the happy talk slogans that were used frequently by all the speakers. He provided some quotes by Gregory Lampman, the Director of Offshore Wind at NYSERDA.  (“We’re the leader. . . .  We have a bias toward action. . . .  long term sustainability . . . something we can be proud of”).  My notes include the following from John O’Leary of the Governor’s Office: “laboratory for democracy”, “pivotal moment in time”, and “confidence in ability to move forward”.  These kinds of comments were the rule and not the exception.

My Observations

One aspect of the keynote presentation by Harris annoyed me but also led to the only positive aspect of any the panelist’s remarks.  NYSERDA has a whole department dedicated to public presentations and press releases all of which must be approved by the Hochul Administration.  The keynote presentation threw in the line “Who doesn’t love heat pumps” which drew applause and, to his ever-lasting credit, boos from Francis Menton. I was encouraged later in the program when Carrie Woerner, an assemblywoman from Glens Falls, managed to respond to the implication that heat pumps are a universal solution with no down sides. She basically quoted material from the James Hanley heat pump article about costs and the likelihood that people will switch to resistance furnaces instead of heat pumps because of the cost. 

I took a bunch of notes, but it would be a waste of time to bother to document all the biased comments, inaccurate arguments, and appeals to the preferred political constituencies during the day.  They far outweighed any mentions of potential concerns.  This was not an opportunity for the developers and affected entities to discuss possible problems and how they could be resolved.

Conclusion

Menton and I agree that this was nothing more than a revival meeting for the camp followers of the “clean energy miracle solution for the climate change threat” cult. I don’t think many outside the cult understand how immense the political support for this cult is and how the amount of money involved surely keeps the whole scam going. 

Menton concludes that:

It is completely clear that the people running New York’s supposed energy transition do not have the slightest hint of competence.  I suppose that’s for the better, because people who were actually competent could keep the charade going for a much longer time.  With this crowd, the collapse will come sooner, although not nearly soon enough.

I agree that this eventually has to collapse with or without competent advocates.  Unfortunately,  I fear that it will be so far in the future that the damages from the inane energy policy will cause irreparable harm to New York.

New York Ten Point Plan Contract Renegotiation

On October 6, 2023 the New York State Public Service Commission (PSC) turned down the request by renewable energy developers to renegotiate their contracts and there was a fleeting hope that New York State was coming to grips that there was a realization that the costs associated with the Climate Leadership & Community Protection Act (Climate Act) net zero transition could be prohibitive.  However, that hope was tempered on October 12, 2023 when Governor Hochul announced “the release of a new 10-Point Action Plan to expand and support the growing large-scale renewable energy industry in New York.”  On November 16, 2023, Hochul announced that the contracts for offshore wind and land-based renewable energy projects would be re-opened for adjustments on an expedited basis and any hope that affordability would actually be a consideration evaporated.  This post explains my concerns.

I have followed the Climate Act since it was first proposed, submitted comments on the Climate Act implementation plan, and have written over 350 articles about New York’s net-zero transition.  I have devoted a lot of time to the Climate Act because I believe the ambitions for a zero-emissions economy embodied in the Climate Act outstrip available renewable technology such that the net-zero transition will do more harm than good by increasing costs unacceptably, threatening electric system reliability, and causing significant unintended environmental impacts.  The opinions expressed in this post do not reflect the position of any of my previous employers or any other organization I have been associated with, these comments are mine alone.

Overview

The Climate Act established a New York “Net Zero” target (85% reduction and 15% offset of emissions) by 2050.  It includes an interim 2030 reduction target of a 40% reduction by 2030 and a requirement that all electricity generated be “zero-emissions” by 2040. The Climate Action Council (CAC) is responsible for preparing the Scoping Plan that outlines how to “achieve the State’s bold clean energy and climate agenda.”  In brief, that plan is to electrify everything possible using zero-emissions electricity. The Integration Analysis prepared by the New York State Energy Research and Development Authority (NYSERDA) and its consultants quantifies the impact of the electrification strategies.  That material was used to develop the Draft Scoping Plan.  After a year-long review, the Scoping Plan recommendations were finalized at the end of 2022.  In 2023 the Scoping Plan recommendations are supposed to be implemented through regulation, PSC orders, and legislation.  The comments described follow a recent decision by the PSC to deny petitions seeking to amend contracts with renewable energy projects. 

My major concern with this issue is the impact on consumer prices.  Consumer electric prices are too complicated to fully explain here but there are two things to keep in mind.  In New York electric bills are separated into two components: ““supply” and “delivery”.  When the renewable energy costs are increased it will affect the supply component of utility bills.  The New York Independent System Operator (NYSISO) explains that “Household electricity bills include supply, transmission, distribution, and other charges approved by New York State. ‘Supply’ charges in a typical retail electric consumer bill reflect procurement costs that vary by utility and are influenced by the wholesale cost of producing electricity.”  The wholesale price is made up of multiple components and electricity costs will be directly affected by the renegotiation of renewable energy contracts but note that this price varies by region.  According to the Potomac Economics 2022 State of the Market Report for the New York ISO Markets, the average wholesale all-in price in 2022 averaged ~$70/MWh in Western and Central New York, ~$55/MWh in Northern New York, ~$110/MWh in the Capital region, ~$105/MWh in the Lower Hudson Valley and New York City, and ~$125/MWh on Long Island.

Request for Renewable Energy Contract Renegotiation

In June 2023 a group of offshore wind developers and a state renewable energy trade association sought to renegotiate their contracts requesting billions of dollars in additional funding from consumers for four proposed offshore wind projects and 86 land-based renewable projects. The developers claimed that “unexpected and unforeseeable rise in inflation and supply chain costs and constraints associated with, among other things, the COVID-19 pandemic and the Russian invasion of Ukraine.”  They also stated that the increased costs have eroded internal rates of return and have therefore caused many in-development projects with NYSERDA awards to no longer be economically viable under existing contract pricing terms.

On October 12, 2023 the Public Service Commission (PSC) turned down the request to address the cost issues explaining that they “opted to preserve the robust competitive bidding process that provides critically needed renewable energy resources to New York in the fairest and most cost-effective manner that protects consumers.”  Times Union writer Rick Karlin summarized:

At issue was a request in June by ACE NY, as well as Empire Offshore Wind LLC, Beacon Wind LLC, and Sunrise Wind LLC, which are putting up the offshore wind tower farms.

All told, the request, which was in the form of a filing before the PSC, represented four offshore wind projects totaling 4.2 gigawatts of power, five land-based wind farms worth 7.5 gigawatts and 81 large solar arrays.

All of these projects are underway but not completed. They have already been selected and are under contract with the New York State Energy Research and Development Authority, or NYSERDA, to help New York transition to a clean power grid, as called for in the Climate Leadership and Community Protection Act, approved by the state Legislature and signed into law in 2019.

  • Developer response to the PSC decision suggested that “a number of planned projects will now be canceled, and their developers will try to rebid for a higher price at a later date — which will lead to delays in ushering in an era of green energy in New York”. Karlin also quotes Fred Zalcman, director of the New York Offshore Wind Alliance: “Today’s PSC decision denying relief to the portfolio of contracted offshore wind projects puts these projects in serious jeopardy.”

In my opinion, New York ratepayers dodged a bullet when these requests were turned down.  The Supplemental Comments of Multiple Intervenors and the Municipal Electric Utilities Association of New York State on the developer request for renegotiation found that “Using the changes in strike price presented in NYSERDA’s comments together with public information available in the OSW Petitioners’ respective OREC Agreements, it now appears that the OSW Petitioners collectively are requesting an additional $37.7 billion of customer funding above and beyond the value of their existing contracts (and excluding the relief requested in the petitions filed by ACENY, Clean Path NY, and CHPE)”. I excerpted estimates from Table 1. Estimated Cost Impact of Offshore Wind Petitions below.

Table 1. Estimated Cost Impact of Offshore Wind Petitions Excerpt

 OriginalAdjustedTotal
 Strike PriceStrike PriceIncremental
 ($/MWh)($/MWh)Cost ($)
Empire Wind 1$118.38$159.64$6,195,189,000
Empire Wind 2$107.50$177.84$13,382,065,422
Beacon Wind$118.00$190.82$14,461,855,386
Sunrise Wind$110.37$139.99$3,600,148,090

Note that the PSC decision to reject the requests was based on concerns related to the competitive bidding process and not the expected $37.7 billion increase in costs described here.

October Announcement

On October 24, 2023, Governor Hochul announced the results of NYSERDA’s third competitive renewable energy solicitation:

The conditional awards include three offshore wind and 22 land-based renewable energy projects totaling 6.4 gigawatts of clean energy, enough to power 2.6 million New York homes and deliver approximately 12 percent of New York’s electricity needs once completed. When coupled with two marquee offshore wind blade and nacelle manufacturing facilities, this portfolio of newly announced projects is expected to create approximately 8,300 family-sustaining jobs and spur $20 billion in economic development investments statewide, including developer-committed investments to support disadvantaged communities.  

For the offshore wind resources, NYSERDA provisionally awarded three projects totaling 4,032 MW, enough to power 2 million homes: Attentive Energy One (developed by Total Energies, Rise Light & Power, and Corio Generation), Community Offshore Wind (developed by RWE Offshore Renewables and National Grid Ventures), and Excelsior Wind (developed by Vineyard Offshore).  I found the following description of the expected bill impacts:

All three projects are anticipated to enter commercial operation by 2030. The average bill impact for customers over the life of the projects will be approximately 2.73 percent, or about $2.93 per month. The weighted average strike price of the awarded offshore wind projects over the life of the contracts is $96.72 per megawatt hour in 2023 (real) dollars, which equates to a nominal weighted average strike price of $145.07 per megawatt hour. The strike prices comprising the weighted average cited above are subject to certain adjustments in accordance with the terms of the awarded contracts, including, in some cases, adjustments based on certain price indices, interconnection costs and/or receipt of qualifying federal support.

Ten Point Plan

Within a week of the PSC decision to reject contract renegotiation, the Hochul Administration responded with a 10-Point Renewable Energy Action Plan to “expand the renewable energy industry and support high-quality jobs clean jobs in New York State”.  It included two actions directly related to the potential that these renewable projects could get cancelled.  The first action said that the New York State Research & Development Authority (NYSERDA) will “address the directives issued in the October 2023 Public Service Commission (PSC) Order and will assess the impacts on its large-scale renewables contracted portfolio in an expedited manner.”  The second action announced that:

NYSERDA will launch an accelerated renewable energy procurement process for both offshore and onshore renewable energy projects, aiming to backfill any contracted projects which are terminated. The process will be guided by core principles, including prioritizing competition, simplifying bid requirements, incorporating inflation indexing, applying critical labor protections, and collaborating with industry to optimize the accelerated procurement timing, all while coordinating with ongoing transmission planning initiatives.

Consistent with the ten point plan announcement, on November 16, 2023 Governor Kathy Hochul announced that “expedited offshore wind and land-based renewable energy solicitations as part of New York’s 10-Point Action Plan to bolster its growing large-scale renewable industry.”   The new requests for proposals will be released on November 30, 2023, with bids due in January 2024. The new solicitation will be open to all bidders, including those with existing contracts. This would allow the companies to re-offer their planned projects at higher prices and exit their old contracts. In my opinion, I believe every developer will go back out seeking a contract that increases their payouts so we may not have dodged the bullet.

United Kingdom Offshore Wind

In the United Kingdom there is annual auction for companies hoping to build big offshore windfarms which awards contracts to generate renewable electricity for 15 years at a set price.  The starting price for this year’s auction was set at £44 per MWh ($54.81 per MWh) but no one submitted bids.  According to the Guardian:

The companies had warned ministers repeatedly that the auction price was set too low for offshore windfarms to take part after costs in the sector soared by about 40% because of inflation across their supply chains.

The UK Government recently increased the strike price for the next auction to £73 per MWh ($90.93), up 66%.  Energy Security Secretary Claire Coutinho said: 

The UK is home to the world’s five largest offshore wind farms projects.  Today we have started the process of our latest Contracts for Difference auction for renewables, opening in March next year.  We recognise that there have been global challenges in this sector and our new annual auction allows us to reflect this.  This is a vital part of our plan to have enough homegrown clean energy, bringing bills down for families and strengthening our energy independence.

I think there are two points to consider from this The first is that there is no assurance that the 67% increase is enough to get developers to bid. The second is that New York developers are under the same pressures so the projected offshore wind cost decreases included in the Climate Action Plan are unlikely.

Discussion

I recognize that the Climate Act mandates the net-zero transition, but I do not believe that means that the transition is unconditional.  I am very disappointed that the Hochul Administration has not made the expected net-zero transition costs transparent and established affordability thresholds.  In the absence of that guidance, the PSC should define their expectations for rates that are just and reasonable.  The PSC Order Denying Petitions Seeking to Amend Contracts with Renewable Energy Projects suggested that there are affordability conditions that must be considered.  On page 39 of this order, it states:

We recognize that PSL §66-p(2) adds the pursuit of the 70 by 2030 and Zero Emissions by 2040 Targets to the Commission’s obligations but do not read the provisions of the more recent statute as superseding the Commission’s longstanding mandate to ensure that rates are just and reasonable. There is no indication in the statutory language or history that the legislature intended such a result, which could have the undesirable effect of driving ratepayer costs so high as to put the entire program at risk. To the contrary, the legislature provided the Commission with significant discretion under PSL §66-p(2) regarding how to establish the program to implement the 70 by 2030 and Zero Emissions by 2040 Targets by authorizing the Commission to “address impacts of the program on safe and adequate electric service in the state under reasonably foreseeable conditions,” as well as to “modify the obligations of jurisdictional load serving entities and/or the targets” based on consideration of such factors.

In addition, I believe that another provision of New York Public Service Law  § 66-p. “Establishment of a renewable energy program” includes safety valve conditions.  Section §66-p (4) states “The commission may temporarily suspend or modify the obligations under such program provided that the commission, after conducting a hearing as provided in section twenty of this chapter, makes a finding that the program impedes the provision of safe and adequate electric service; the program is likely to impair existing obligations and agreements; and/or that there is a significant increase in arrears or service disconnections that the commission determines is related to the program”.  The reference to a significant increase in arrears or service disconnections clearly is an implied affordability requirement.

Conclusion

The most recent information on the cost of offshore wind raises legitimate cost concerns.  Offshore wind is expected to provide 9% of the generating capacity and 14% of the electric energy produced by 2030 but at what cost?  The average bill impact for the recently announced offshore wind projects is $2.93 per month.  I project that when the original four offshore wind projects get new contracts it will add another $3.60 to consumer bills.  The $6.53 for the offshore wind resources needed for the net-zero transition does not include the costs for the onshore wind resources, solar energy resources, the energy storage resources, and the dispatchable emissions-free resources that make up the supply component of future electric bills.  It also does not include the delivery component costs of future electric bills that will be needed to pay for the transmission and distribution electric system upgrades.  The Propel NY transmission line recently approved to get 3,000 MW of offshore wind into the New York grid is expected to cost $3.28 billion.  That is just the start of those costs. In addition, consumers will be expected to pay to electrify their home heating, cooking, and hot water systems and purchase electric vehicles. 

Governor Hochul recently said. “We remain committed in powering our state with affordable, zero-emission and reliable electricity.”  Her Administration has yet to document the expected costs of the net-zero transition to consumers or detail the total expected costs.  In order for New Yorkers to test her commitment for affordable electricity, I think it is well past time that the numbers are provided so that we can decide whether the costs are in fact affordable ourselves.  I have no doubt that her idea of “affordable” and mine are not the same.

My fleeting hope that the Hochul Administration had realized that the costs of the net-zero transition are going to be unsustainable when the PSC refused to renegotiate renewable energy contracts has been dashed.  Last week’s announcement that the contracts would be re-opened so that the contact costs can be revised guarantees that the costs will be increased substantially.

Coalition Calls for Rethinking of Energy Plan

A coalition of community-based environmental groups and a few individuals, including me, recently filed comments with the New York Public Service Commission (PSC).  Our comments called for reconsideration of the PSC’s plan for reducing power plant emissions principally with large-scale renewables to meet the mandates in the New York Climate Leadership & Community Protection Act (Climate Act).  This post describes the submitted comments.

I have followed the Climate Act since it was first proposed, submitted comments on the Climate Act implementation plan, and have written over 350 articles about New York’s net-zero transition.  I have devoted a lot of time to the Climate Act because I believe the ambitions for a zero-emissions economy embodied in the Climate Act outstrip available renewable technology such that the net-zero transition will do more harm than good by increasing costs unacceptably, threatening electric system reliability, and causing significant unintended environmental impacts.  The opinions expressed in this post do not reflect the position of any of my previous employers or any other organization I have been associated with, these comments are mine alone.

Overview

The Climate Act established a New York “Net Zero” target (85% reduction and 15% offset of emissions) by 2050.  It includes an interim 2030 reduction target of a 40% reduction by 2030 and a requirement that all electricity generated be “zero-emissions” by 2040. The Climate Action Council (CAC) is responsible for preparing the Scoping Plan that outlines how to “achieve the State’s bold clean energy and climate agenda.”  In brief, that plan is to electrify everything possible using zero-emissions electricity. The Integration Analysis prepared by the New York State Energy Research and Development Authority (NYSERDA) and its consultants quantifies the impact of the electrification strategies.  That material was used to develop the Draft Scoping Plan.  After a year-long review, the Scoping Plan recommendations were finalized at the end of 2022.  In 2023 the Scoping Plan recommendations are supposed to be implemented through regulation, PSC orders, and legislation.  The comments described follow a recent decision by the PSC to deny petitions seeking to amend contracts with renewable energy projects. 

Coalition Calls for Rethinking of Energy Plan

All Otsego recently described the comments submitted by an ad hoc coalition.  The submittal was filed to the Proceeding on Motion of the Commission to Implement a Large-Scale Renewable Program and a Clean Energy Standard, Case Number:15-E-0302.  The following listed parties submitted the comments: Glen Families Allied for the Responsible Management of Land (GlenFARMLand), Protect Columbia, Farmersville United, Freedom United, Litchfield United, Flyway Defense, No Big Wind, Centerville’s Concerned Citizens, Concerned Citizens of Rushford, Save Sauquoit Valley Views, StopCricketValley, Protect Orange County, Cattaraugus County Legislator Ginger D. Schroder, Esq, Gary Abraham, Esq., Roger Caiazza, David Sunderwith, and Greg Woodrich.

The All Otsego article provides a good summary of the comments:

TOWN OF COLUMBIA—A coalition of community-based environmental groups around the state filed comments with the New York Public Service Commission last week, calling for a reconsideration of the PSC’s plan for reducing power plant emissions principally with large-scale renewables.

According to the press release, the coalition is comprised of environmentally-minded people participating in the review of large-scale renewable energy projects around the state. The coalition points to physical constraints on the ability of wind and solar to contribute to carbon emission reductions and energy analysts who project that the electric grid will become less reliable as more intermittent renewables are connected. Backup power plants to ensure grid reliability and extensive infrastructure changes are needed to utilize wind and solar energy, coalition members contend, saying these are not warranted given the environmental damage renewables cause, along with potential health and safety hazards associated with the projects, including their battery storage systems.

“Large-scale renewables are being sited on prime agricultural land and are clearing thousands of acres of forests,” according to Ginger Schroder, a Cattaraugus County legislator and member of the coalition.

Schroder pointed to the 100-square-mile project area needed for the proposed Alle-Catt wind farm in western New York.

“Renewables require massive amounts of land, not only for sprawling solar and wind projects, but also for all of the additional transmission, storage, and backup generation needed. These are destroying communities,” Schroder said.

Steve Helmin with GlenFARMLand in the Town of Glen said, “Small rural communities across New York are being targeted as a result of poor planning and over-zealous expectations. The commission needs to step back and review what can work to meet our climate goals.”

Coalition member Nathan Seamon, with Protect Columbia in the Town of Columbia, added, “Since the passage of the Climate Leadership and Community Protection Act, New York State has moved from a 60 percent carbon-free grid in 2019 to one that is only 50 percent carbon-free today. Meanwhile, energy costs—for both natural gas and electricity—continue to rise.

“Upstate communities have been robbed of robust environmental review and fair tax revenue from underperforming industrial solar and wind projects which they are forced to host. How this makes any sense should be baffling to anyone who has paid attention to this over the past several years,” Seamon said.

The group is calling on the PSC to support a jobs and cost analysis of an energy transition that uses a diverse set of technologies, including nuclear and expanded hydropower, compared to one that relies on intermittent, unreliable, and environmentally unsound wind and solar.

“The Public Service Commission needs to put the words ‘leadership’ and ‘community’ back into the Climate Leadership and Community Protection Act,” coalition members insist. “Real climate leadership requires solutions that work in the real world and that do not destroy communities in the process.”

The 22-page document filed with the PSC on November 2 concludes: “…by respecting communities and embracing a balanced energy plan that supports the expansion of all carbon-free resources—including those capable of generating reliable electricity within an energy-dense footprint—the state can meet its climate goals, protect the environment and natural beauty of New York, and meet the needs of a vibrant economy. We urge the Commission to exercise its authority to help New York chart a course that accomplishes the latter.”

Can the State Respond?

Advocates for the Climate Act and the renewable energy developers argue that the energy transition must proceed no matter what because the Climate Act law says so.  However the recent PSC Order Denying Petitions Seeking to Amend Contracts with Renewable Energy Projects suggested that there are conditions that must be considered.  On page 39 of this order, it states:

We recognize that PSL §66-p(2) adds the pursuit of the 70 by 2030 and Zero Emissions by 2040 Targets to the Commission’s obligations but do not read the provisions of the more recent statute as superseding the Commission’s longstanding mandate to ensure that rates are just and reasonable. There is no indication in the statutory language or history that the legislature intended such a result, which could have the undesirable effect of driving ratepayer costs so high as to put the entire program at risk. To the contrary, the legislature provided the Commission with significant discretion under PSL §66-p(2) regarding how to establish the program to implement the 70 by 2030 and Zero Emissions by 2040 Targets by authorizing the Commission to “address impacts of the program on safe and adequate electric service in the state under reasonably foreseeable conditions,” as well as to “modify the obligations of jurisdictional load serving entities and/or the targets” based on consideration of such factors.

I believe that another provision of New York Public Service Law  § 66-p. “Establishment of a renewable energy program” includes safety valve conditions.  Section §66-p (4) states “The commission may temporarily suspend or modify the obligations under such program provided that the commission, after conducting a hearing as provided in section twenty of this chapter, makes a finding that the program impedes the provision of safe and adequate electric service; the program is likely to impair existing obligations and agreements; and/or that there is a significant increase in arrears or service disconnections that the commission determines is related to the program”. 

The PSC has a longstanding mandate to provide safe and adequate electric service.  The comments submitted describe many of the problems with the plan to use intermittent wind and solar resources that I believe will inevitably lead to unsafe and inadequate electric service.  I think that there are mechanisms that can be used to respond to the comments.  However, it is an open question whether the Hochul Administration will risk the wrath of the environmentalist constituency in the progressive left wing of her party and admit that implementation of the Climate Act may not be affordable and has unacceptable risks to reliability.

Discussion

I was asked to join the coalition late in the game so did not have a chance to provide comments to modify anything in the text.  Had I had a voice in the development of the text I would have pointed out that the claim that the New York State Department of Environmental Conservation (DEC) has not provided a Generic Environmental Impact Statement solar and wind development is incorrect.  They have done that evaluation, but it was completed in 2019 and does not consider the much larger number of wind turbines and solar panels that the Scoping Plan projects are necessary for the net-zero transition.  The cumulative ecological impact of the current plan due to its extremely low energy density and permanence of extensive infrastructure still needs to be evaluated. 

My only other quibble is the implication that fossil fuels should not be considered in the future.  Reliance on weather dependent wind and solar resources must address extreme variability in resource availability.  If that constraint is handled incorrectly, then electric energy will run out at the worst possible time.  The challenge of developing a dispatchable emissions-free resource to handle this possibility is immense.  The worst part, in my opinion, is that any long-duration storage option must push the physics envelope so this technology may be impossible.  Even if that challenge is overcome, the comments point out that the projected resources are on the order of the existing fossil fuel system resources and the expectation is that they will be used infrequently.  For example, if the future system is designed to provide support for a once in twenty-year event, then some portion of this resource will only be used every twenty years.  I cannot see any way to overcome the economics needed to pay the huge costs for this entirely new and untested resource such that it would be viable.  In order to address the problem, I think that retaining fossil fired resources for this rare but impactful event makes sense.  Even if the State came to its senses and developed nuclear resources as proposed in the comments, some share of reliable fossil resources probably makes economic sense.  The incremental global warming impact of those rarely fossil-fired resources would be insignificant.

Conclusion

The comments urge the PSC to “exercise its authority to avoid this tragedy by conducting substantive engineering, economic, and logistical analyses that should have occurred long before now.”  Obvious problems in other jurisdictions should be addressed now rather than wished away.  New York should also learn from places that successfully decarbonized. Throughout the world, “large economies that have achieved very low-carbon grids did so not by relying on underperforming intermittent generation, but instead by using high-capacity-factor firm resources—namely hydropower and nuclear—which are capable of producing abundant, reliable energy.”

Prioritizing Justice in New York State Climate Policy

This article was also published at Watts Up With That

In September Resources for the Future released Prioritizing Justice in New York State Climate Policy: Cleaner Air for Disadvantaged Communities which is described as an investigation of local air quality impacts on disadvantaged communities from implementation of the New York Climate Leadership & Community Protection Act (Climate Act).  I submitted it to the wider audience at Watts Up With That because the topic is relevant for other jurisdictions as well as New York for two reasons.    Firstly, environmental justice is a component of the Climate Act and many other current GHG emissions reduction initiatives, and this document explains the rationale behind its inclusion. Secondly, it is a disturbing example of the machinations and cherry picking associated with the scientific justification of the demands of environmental justice advocates.

I have followed the Climate Act since it was first proposed, submitted comments on the Climate Act implementation plan, and have written over 350 articles about New York’s net-zero transition.  I have devoted a lot of time to the Climate Act because I believe the ambitions for a zero-emissions economy embodied in the Climate Act outstrip available renewable technology such that the net-zero transition will do more harm than good by increasing costs unacceptably, threatening electric system reliability, and causing significant unintended environmental impacts.  The opinions expressed in this post do not reflect the position of any of my previous employers or any other organization I have been associated with, these comments are mine alone.

Overview

The Climate Act established a New York “Net Zero” target (85% reduction and 15% offset of emissions) by 2050.  It includes an interim 2030 reduction target of a 40% reduction by 2030 and a requirement that all electricity generated be “zero-emissions” by 2040. The Climate Action Council (CAC) is responsible for preparing the Scoping Plan that outlines how to “achieve the State’s bold clean energy and climate agenda.”  In brief, that plan is to electrify everything possible using zero-emissions electricity. The Integration Analysis prepared by the New York State Energy Research and Development Authority (NYSERDA) and its consultants quantifies the impact of the electrification strategies.  That material was used to develop the Draft Scoping Plan.  After a year-long review, the Scoping Plan recommendations were finalized at the end of 2022.  In 2023 the Scoping Plan recommendations are supposed to be implemented through regulation and legislation.  Environmental Justice advocates are providing input to the development of the regulations and legislation.

The report was prepared by Resources for the Future (RFF).  They are an independent, nonprofit research institution in Washington, DC.  The mission for Resources for the Future is to “improve environmental, energy, and natural resource decisions through impartial economic research and policy engagement.”  They claim to be committed to being the “most widely trusted source of research insights and policy solutions leading to a healthy environment and a thriving economy.”  RFF is a 501(c) non-profit organization and has to file a Form 990 Return of Organization Exempt fFrom Income Tax report.  According to the 2021 report, they employed 98 people, had a total revenue of $13 million, had a payroll of  $10.7 million, and had fundraising expenses totaling $1.2 million in fiscal year 2021.

The publication announcement for the report says:

Our country and New York State (NYS) in particular are striving to meet the interrelated challenges of decarbonization and environmental justice. Historically unjust systems and policies have led to a disproportional air pollution burden on low-income communities and communities of color. As a result, the federal and NYS governments have resolved to meet their climate goals while improving air quality conditions in disadvantaged communities.

Bringing together leading environmental justice advocates, economic researchers, public health scientists, and air quality modelers, Resources for the Future (RFF) and the New York City Environmental Justice Alliance (NYC-EJA) along with researchers at Yale, UC Davis, and Northeastern University have partnered to investigate local air quality impacts on disadvantaged communities from implementation of the NY Climate Leadership and Community Protection Act (CLCPA). Specifically, we compare two sets of policies, both in line with the statutory requirements of the law but differing in their ambition and the degree to which they focus on aiding disadvantaged communities, with a business-as-usual (control) case in 2030. One policy case (inspired by recommendations of the Climate Action Council, CAC) models what the New York State government may implement, which includes policies discussed in other jurisdictions and proposed by New York policymakers. The other case (representing what many stakeholders recommend) was crafted by a team led by NYC-EJA and included many environmental and climate justice advocates in New York, who prioritized community protection and directing benefits to marginalized communities. We modeled the impact of policies on the electric power, on-road transportation, ports, and residential building sectors; the effects these policies have on emissions of direct fine particulate matter (PM2.5) and its precursors nitrogen oxides, sulfur dioxide, and volatile organic compounds (NOx, SO2, and VOCs); and the resulting PM2.5 concentrations experienced by disadvantaged communities and nondisadvantaged communities alike.

Environmental Justice

In the last few years environmental justice considerations have been incorporated into many proposed environmental policies.  Addressing the alleged existential threat of climate change is embroiled in politics and proponents for political net-zero transition legislation incorporate components designed to appeal to specific constituencies.  For example, every press release associated with the Climate Act touts all the well-paying jobs created to appeal to trade unions.  New York’s Climate Act included the environmental justice component to cater to its advocacy constituency.  The Section 1 introduction to the report explains:

One of the most prominent examples of justice-oriented climate policy is New York State’s recent climate law, the Climate Leadership and Community Protection Act (CLCPA). As the state moves to implement this groundbreaking law, rigorous research and analysis are needed to shed light on policy design options that can achieve the dual goals of cutting GHG emissions and improving air quality and other public health outcomes for “disadvantaged communities,” as defined by the state. This requirement is the motivation for this study.

The Introduction to the report lays out the environmental justice problem:

As a result of historically unjust systems and policies, the neighborhoods where low-income communities and communities of color live, work, learn, and play are often sites for or affected by polluting infrastructure, vehicle congestion, and other environmental hazards. Racist systems and policies along with economic discrimination continue to diminish the health and quality of life of communities of color and low-income communities and make them more at risk to other hazards like climate change (Peña-Parr 2020; Donaghy et al. 2023). As fossil fuel consumption and pollution have increased exponentially over the past century, not only has the climate change outlook worsened, but vulnerable communities have also disproportionally suffered injury, disease, death, displacement, and loss of property because of these same trends (Resnik 2022).

I do not dispute that disadvantaged communities have suffered historically disproportionate impacts of environmental pollution.  I agree that something should be done about it, but I worry that the only thing that will placate the most vocal of the environmental justice advocates is zero impacts without any consideration of tradeoffs.  The last sentence exemplifies my concern.  Conflating fossil fuel consumption and pollution increases with vulnerable community impacts ignores all the health and quality of life improvements that accompanied the increased use of fossil fuels over the last century.  There is no acknowledgement of the tremendous improvements in environmental quality over the last 50 years nor are there any reservations that the “zero-emissions” solutions bandied about simply move the emissions elsewhere and that those impacts could be much worse than the impacts described in this report.  Unfortunately, I think this is normal for environmental justice advocacy so similar arguments will eventually influence environmental policy elsewhere.

New York Climate Policy and Environmental Justice Landscape

Section 2 of the document notes that the Climate Act “explicitly sets goals for environmental and climate justice— addressing the disinvestment and disproportionate environmental burdens that communities of color and low-income communities have experienced.” The preamble to the Act states that “actions undertaken by New York State to mitigate GHG emissions should prioritize the safety and health of disadvantaged communities, control potential regressive impacts of future climate change mitigation and adaptation policies on these communities and prioritize the allocation of public investments in these areas.”

Importantly the Climate Act requires reductions in greenhouse gas emissions (GHG) but also refers to  co-pollutants.  It specifically directs the New York State Department of Environmental Conservation (DEC) to “ensure that activities undertaken to comply with the regulations do not result in a net increase in co-pollutant emissions or otherwise disproportionately burden disadvantaged communities”.  Advocates claim that this requires state regulations to prioritize air quality in disadvantaged communities.  Environmental burdens are not supposed to be shifted from wealthier communities to lower-income, minority communities. The Act also established the Climate Justice Working Group (CJWG) that was tasked with establishing criteria for identifying disadvantaged communities and representing environmental justice priorities throughout the various stages of CLCPA implementation. Finally, there is a stipulation that 35 to 40 percent of the benefits and investments go to disadvantaged communities.

The EJ sub-section notes:

Historically, low-income communities and communities of color have been systematically disinvested from, with racist policies and practices such as redlining used to value certain neighborhoods and residents above others (Hoffman et al. 2020). These policies and systems have caused wealth and resource gaps that endure to this day, investing in quality-of-life improvements in wealthier areas while pushing polluting industries into lower-income communities (Hoffman et al. 2020; Nardone et al. 2020; Schell et al. 2020).  We see these disparities reflected in the location of power plants, transportation depots, and city parks. The impacts of this unequal investment are clear in public health data, with environmentally driven poor health outcomes like asthma most prevalent in EJ communities (New York City Department of Health and Mental Hygiene 2020).

I have concerns with this summary.  On the face of it, it appears that the solution for these policies is to shut down the power plants and transportation depots and replace them with parks.  Needless to say, space is at a tremendous premium in New York City.  It is easy to say shut down the power plants and transportation depots, but they serve critical support functions.  There are no viable replacement technologies available that do not require space so it is not clear how this can be accomplished to comply with this.

The primary analysis in this report is related to air quality health outcomes with an emphasis on asthma and other respiratory problems.  The presumption is that the poor health outcomes are driven by outdoor environmental burdens.  However, there are so many confounding factors associated with asthma and respiratory illnesses (e.g. smoking) that this is a weak presumption.  Nonetheless, EJ stakeholders are demanding that the climate change solutions be done in “a way that centers racial and economic justice, addressing this history of abuse” and are focusing on air pollution.

RFF Research

The RFF research “seeks to inform” the policies that phase out behaviors and technologies that generate GHG emissions.  Their analysis analyzed the GHG and air pollution impacts of three policy cases:

  1. A business-as-usual (BAU) case, meant to represent what would happen to emissions and air quality without the actions contemplated in the two policy cases;
  2. The stakeholder policy case (SPC), meant to reflect EJ policy priorities; and
  3. The Climate Action Council-inspired policy case (CPC), meant to reflect a plausible set of policies coming out of the state’s scoping plan process, which defines the policy goals and tools that ought to be used to meet the legal requirements of the Climate Act.

The RFF analysis evaluates policy outcome differences between disadvantaged communities and non disadvantaged communities.  They calculated a metric they call the climate health and vulnerability index and compare that to a map of EJ impacts.  The primary air quality metric used is Particulate Matter with diameters that are 2.5 microns or smaller (PM2.5) also known as inhalable particulates.

 RFF summarizes the approach: “Using this EJ screen and map, we track the effects of changing PM2.5 concentrations on disadvantaged and other communities.”  They go on to claim:

Several characteristics of our research set it apart from other research efforts. Our contribution to examining the outcomes of decarbonization policies on EJ communities at a state level is unique. Additionally, we use a combination of behavioral models and one of the most sophisticated air quality models to assess and trace the consequences of the two policy cases for disadvantaged communities (DACs) and non-DACs. Further, mapping these results visually at the 4km2 scale gives readers an unprecedented ability to assess and understand the geographic distribution of results.

Figure 1 from the document outlines the evaluation process.  I noted that this document is a disturbing example of the machinations and malfeasance associated with the scientific justification for the environmental justice impacts advocates are using to justify their demands.  Each one of these components has flaws that make the results questionable at best.

Policy Cases

My primary concern with machinations is related to the assumptions and biases of the modelers used to differentiate between the policy cases described before.  Each of the policy cases includes numerous control strategy policies.  The report notes:

Not all these policies are explicitly mentioned in the scoping plan. Our modeling work is based on behavioral responses to economic policies, so we had to add detail and specificity to policies where none existed. The CAC-Inspired Policy Case represents one reasonable interpretation of how the priorities in the scoping plan may be executed. The details were established using a mix of New York policy proposals, examples from other state and federal climate policy proposals, and feedback from New York policy experts.

There are concerns with this description because there are so many opportunities to tailor the results to the desired outcome.  The modeling is based on “behavioral responses” which boils down to someone saying, for example, there is a fuel price increase that will make public transit attractive to commuters.  The choice of that price point and the number of affected commuters is pure speculation. Even the choice of policies makes a difference and adding policies not explicitly addressed in the scoping plan is problematic.  The scoping plan policies were developed over a couple of years, so it is unlikely that the scooping plan missed any viable options.  Finally, the stakeholder policy case includes policies that appeal to the advocates but have little connection to reality.  For example, “more ambitious ZEV goals for 2030 in the medium and heavy-duty vehicle sector” sound nice but converting trucks is so difficult that doing it faster is unlikely.

Model Emission Changes

The RFF analysis addressed the emissions projections with three analyses.  The report describes the: Economic Modeling Results, which describes estimated changes in energy demand and technology adoption across our modeled sectors; Greenhouse Gas, PM2.5, and Precursor Emissions Results, which describes estimated emissions changes in our modeled sectors; and Location of Emissions Changes, which describes the location of estimated changes in PM2.5 emissions.  If projected emissions are wrong. then the air quality impacts cannot be correct.  Developing an inventory of emissions for the modeling domain is an enormous effort and there are many opportunities to tailor results to a desired outcome.

The economic modeling results illustrate how behavior presumptions affect the results:

Compared with the BAU, the policy cases also increase the average fuel economy of on-road vehicles by about 15 percent.  The largest difference between the policy cases is in fuel consumption, which is driven by the different prices on carbon emissions. Fuel consumption is about 6 percent lower in the CPC and 12 percent lower in the SPC compared with the BAU. The SPC reduces fuel consumption more than the CPC because of its higher carbon price.

This another example of model assumption bias affecting the results.  The elasticity of fuel consumption relative to higher carbon price is certainly open to a wide range of interpretations. 

Another opportunity for biased reasoning comes when emission rates are chosen for GHG emissions.  The report addresses carbon dioxide and methane GHG emissions not only within the state but also upstream.  The document states “This methane leakage rate for natural gas implies that approximately 2.4 percent of natural gas leaks.”  That quote references a study from 2013, and then claims that the number has stood up well considering other (more recent) reports.  That number is typically of emissions reported by the Environmental Defense Fund from research they did in the Permian Basin, which is the leakiest of all the basins because the main output of the wells is liquid, and the gas is just an annoying byproduct that gets (poorly) flared.  The Appalachian shales like the Utica and the Marcellus have much lower leakage rates, and the National Energy Technology Lab (NETL) estimates that 88% of the natural gas burned in the Northeast U.S, comes from those two shale plays.  NETL shows Appalachian leak rates for the entire value chain at about 0.5%.  Furthermore, ONE Future companies collect and report data that shows that total value chain numbers are also less than 0.5%.  This means that RFF air quality projections associated with methane are 3.8 times higher than projections using the appropriate values for New York.

To its credit, the report emphasizes the difference between emissions and air quality impacts.  EJ advocates frequently overlook the distinction.  The report explains:

To get at this geography of pollution (and related disparities in pollution exposure), we begin by studying where emissions occur—emissions from burning fossil fuels (and some waste and biomass) to generate electricity, heat homes, and power heavy trucks and passenger vehicles on New York roads. Identifying the location of emissions is a prerequisite for determining where pollution ultimately settles (after being mixed and morphed in the atmosphere), which is how we determine the geography of air quality and associated public health implications, discussed below. It is important for the reader to make a clear distinction between emissions and air quality—a distinction we will continue to discuss.

Model Air Quality

Even though the report appropriately describes the difference between emissions and air quality impacts, I have problems with the analysis. The purpose of the analysis is to determine impacts to disadvantaged communities, but the spatial scale used for the inventory and modeling analysis is too coarse to accurately represent what is happening at the neighborhood level.  The report admits that this is a problem:

We also acknowledge that important boundaries to our research may influence the interpretation of the results. For example, our air quality modeling is at a 4km2 grid resolution, which in some cases is larger than a DAC boundary. We use one of the most advanced air quality models for our estimates, which incorporates detailed representations of atmospheric science and chemical processes. We have selected a spatial resolution that preserves the accuracy of that model. To aid in the interpretation of our work, we describe the limitations and caveat for our analysis in Appendix G, including a small error in the transportation emissions used as an input in the air quality model.

The authors can brag all they want about the capabilities of the model and its detailed representation, but the fact is that it is not suited to projecting what is happening on a neighborhood level.  The model they use predicts regional air quality impacts at a 32 km2 grid cell resolution, they interpolated those observations down to a 4km2 grid, and claim to be able to reasonably predict down to a disadvantaged community neighborhood.  Also note that they are only predicting annual averages.  For the reasons mentioned and many others, I do not accept that this only affects interpretation of the results.  Based on decades of air quality modeling experience I think the analysis uses an invalid methodology so I am not even going to present the results.

Discussion

Here is the thing, the report admits as much.  Appendix G. Research Limitations and Caveats in the report admits that there are limitations to the analysis.  It notes that “When modeling community exposure to air pollution, it is ideal to have the most geographically granular analysis possible, given that actual pollution exposure may vary at a level as granular as a city block.  Nonetheless, they present results.

The level of effort necessary to accurately estimate representative air quality burdens in disadvantaged community neighborhoods is immense.  The air quality model used by RFF is appropriate for regional analyses but that is just one component of localized air quality burdens.  At the neighborhood level, emissions and air quality impacts must be broken down to small spatial and temporal scales.  When predicting emissions at the community level details that cannot be incorporated into regional models for particulates must be included. For example, on a regional level the emissions from a char-grilling restaurant do not matter but in the neighborhood they might.  Because of the justified importance of this issue this is an area of active research.  I am confident that there will be surprises coming for the advocacy community when improved source attribution results are incorporated into policy making.  Spoiler alert – it is not the peaking power plants so vilified by the advocates.  Unless the problem sources are correctly identified, the problem cannot be solved.

Conclusion

I published this here because it foreshadows what I believe will be used to justify EJ demands elsewhere.  The RFF report explains the rationale behind the inclusion of EJ considerations. While I acknowledge that it is appropriate to minimize impacts to disadvantaged communities that have disproportionate impacts, I suspect that resolution is going to be more about emotional arguments than air quality impact science.  As a result, trying to get any new source permitted or renewing existing source permits is going to be more difficult.

I also wanted to highlight the machinations needed to justify the proposed responses.  I described a few of the issues with the modeling approach used but could have provided many more.  RFF all but admits that their modeling approach is inappropriate, but the caveats will not be mentioned when the results are used by the EJ advocate audience.  In addition, there is an inordinate opportunity for modeling assumptions to tailor the results to the preconceived answer desired including cherry picking input references.  As a result, I think the results have no value and did not describe them.  Nevertheless, this report will be referenced and used as justification for onerous permit requirements for any facility that might affect EJ communities.