Skip to content

Pragmatic Environmentalist of New York

Balancing the risks and benefits of environmental initiatives

  • Home
  • Menu
  • About
  • Contact
  • Citizen’s Guide to the Climate Act Page
  • Twitter
  • Facebook
  • Google+
  • GitHub
  • WordPress.com
Pragmatic Environmentalist of New  York

Category: Climate Act Comments Submitted

Climate Action Council Response to Comments Is Worse Than I Thought


The Climate Leadership and Community Protection Act (Climate Act) has a legal mandate for New York State greenhouse gas emissions to meet the ambitious net-zero goal by 2050.  I have not posted recently on the Climate Action Council response to Draft Scoping Plan comments because I have been on vacation and have not bothered to follow the most recent meetings.  Based on what I observed at the September 29 meeting (presentation and recording), there appears to be no consideration of any comments that are inconsistent with the Hochul administration transition narrative.

Everyone wants to do right by the environment to the extent that they can afford to and not be unduly burdened by the effects of environmental policies.  I submitted comments on the Climate Act implementation plan and have written extensively on New York’s net-zero transition because I believe the ambitions for a zero-emissions economy embodied in the Climate Act outstrip available renewable technology such that this supposed cure will be worse than the disease.  The opinions expressed in this post 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.

Climate Act Background

The Climate Act establishes a “Net Zero” target (85% reduction and 15% offset of emissions) by 2050. The Climate Action Council is responsible for preparing the Scoping Plan that will “achieve the State’s bold clean energy and climate agenda”.  They were assisted by Advisory Panels who developed and presented strategies to the meet the goals to the Council.  Those strategies were used to develop the integration analysis prepared by the New York State Energy Research and Development Authority (NYSERDA) and its consultants that tried to quantify the impact of the strategies.  That material was used to write a Draft Scoping Plan that was released for public comment at the end of 2021. The Climate Action Council states that it will revise the Draft Scoping Plan based on comments and other expert input in 2022 with the goal to finalize the Scoping Plan by the end of the year.

Last May I posted an article describing the composition, responsibilities and consideration requirement mandates in the Climate Act related to the Climate Action Council.  Based on the activities of the Council from the start of 2022 I believe that the Climate Action Council is going through the motions of addressing public comments.  If the public comments were truly going to be considered then I think it would have been appropriate to make comment distillation an on-going process from the get go.  At the time I also said I didn’t see why the comments had not been posted to the website.  It would be relatively easy to just provide a list of comments as they were received and there is no reason why they couldn’t also list the comments in some broad categories.  As I write this on October 9, 2022 three months after the close of the comment period the comments have not been posted to https://climate.ny.gov/ as promised last May.  This post highlights further indications of the gameplan from the September 29, 2022 Climate Action Council meeting.

Reliability

I have spent enough time educating myself about the operations of the electric grid over the last 40 years that I am well aware of reliability challenges for the New York electric system.  More importantly, I know people who are subject matter experts and they all share my concerns that the Integration Analysis and the Draft Scoping Plan have not adequately addressed the feasibility of the transition in the mitigation scenarios.  On the other hand, some of the more vocal members of the Council have downplayed reliability as a concern and have gone so far to claim that those concerns are misinformation. 

I have previously written that the Climate Action Council has not confronted reliability issues raised by New York agencies responsible for keeping the lights on.  The first post (New York Climate Act: Is Anyone Listening to the Experts?) described the New York Independent System Operator (NYISO) 2021-2030 Comprehensive Reliability Plan (CRP) report (appendices) released late last year and the difficulties raised in the report are large. The second post (New York Climate Act: What the Experts are Saying Now) highlighted results shown in a draft presentation for the 2021-2040 System & Resource Outlook that all but admitted meeting the net-zero goals of the Climate Act are impossible on the mandated schedule.  Recently I wrote about the “For discussion purposes only” draft of the 2021-2040 System & Resource Outlook report described in the previous article and the concerns raised.  Most recently, I detailed the differences between the Resource Outlook and the Draft Scoping Plan Integration Analysis and recommended that those differences be reconciled in a public forum.

At the September 29 Climate Action Council meeting Gavin Donohue asked about dispatchable emissions-free resources (DEFR) at 1:05:25 of the meeting recording.  DEFR refers to a generating resource that can provide power as needed to keep the lights on.  It is a critical component but there is no commercially available resource that meets the specifications.  The main point of my articles described in the previous paragraph is that the organizations responsible for electric system reliability have raised questions that have not been addressed including DEFR viability.  Donohue apparently agrees with me and asked about the risks of not specifying exactly how DEFR will be used in the transition and how that could affect costs.  The response by the lead modeler, Carl Mas, was that they did look at it at the end of last year and found that the costs would change.  He acknowledged that it has not been resolved whether the hydrogen would be used in combustion turbines or in fuel cells and that should be resolved.  Donohue pressed him that it needs to be resolved as part of the process.  Mas said that it was a previous sensitivity from last year and it is “good to bring it back up”.

Later in the same meeting Dennis Elsenbeck pointed out (2:58:40 of the meeting recording)  that the NYISO Resource Outlook raised issues that haven’t been addressed in the Draft Scoping Plan.  He asked how do we reconcile what the subject matter experts are saying versus what’s in the scoping document.  He also asked if that is a conversation that we need to have during this process or are we beyond that?  The Climate Action Council Executive Director, Sarah Osgood, said “it would be interesting to hear from other council members and said she didn’t know if the modeling analyses were comparable. She said that “at this late stage” it might be difficult to compare the analyses and wasn’t sure whether it would be worthwhile. 

Carl Mas said they could determine whether there is enough time to do at least a little side by side analysis of some of the key issues.  At this point he said there is uncertainty as to, for example, imports vary between the analyses.  He noted that the NYISO did adopt one of the Integration Analysis load scenarios in their analysis.  He said the Integration Analysis team worked very hard to ensure that there was “at least some commonality between the scenarios”.  He did admit that not all aspects were similar but suggested that they might be able to find some time to evaluate differences between scenarios and the projections. 

Elsenbeck pointed out that stakeholders outside of the Hochul Administration see the NYISO reports and “the first thing that comes to mind is my resiliency is going to go to hell”.  He said the Council could just not look the other way.  Mas responded that there is agreement that by 2040 there is a need for firm dispatchable resources but ignored the implications of the state’s reliability depending on an unproven resource.  Then he went on to claim that it is critical to work with the NYISO.  Elsenbeck then pointed out that the Council is going to be voting on a Final Scoping Plan that has not been fully vetted with the NYISO.

In my opinion, these conversations are very troubling.  At no time during his presentation or his questions did the Integration Analysis lead modeler mention any issues raised in the stakeholder comments.  Were it not for the fact that my comments and the comments submitted by the NYISO and New York State Reliability Council did raise substantive issues I would have to believe that all the stakeholder comments agree that the unelected bureaucrats who have no reliability responsibilities have produced a perfect transition plan that can guide the future New York energy system. 

Sarah Osgood’s response to the Elsenbeck question is especially troubling.  The Executive Director of the Climate Action Council didn’t know if the generation resource modeling analyses critical to the success of the transition plan were comparable to the analyses by the NYISO.  She said that “at this late stage” it might be difficult to compare the analyses and wasn’t sure whether it would be worthwhile.  This demonstrates an astounding lack of awareness by the Climate Action Council leadership that has frittered away months without addressing this issue.  Now they claim they cannot reconcile the results because it is too late.  You can bet the ranch that when this implodes that the NYISO will be blamed for not speaking up. 

Integration Analysis

Carl Mas gave an update on the Integration Analysis at 24:25 of the meeting recording.  Ostensibly the updates address the impact of the Inflation Reduction Act (IRA) as well as analyses that look at a high fuel price sensitivity and a high technology cost sensitivity.  In order to prove the benefits are greater than the costs the focus is on the net benefits metric especially as it relates to their societal cost benefit test. 

The following slide summarizes the IRA integration analysis update.  The modeling addresses two key aspects: what IRA funds may be available that could come to New York to offset costs and to translate that into how it “layers into our net benefit or overall analysis”.  I interpret that to mean that because of the emphasis on net benefits that means that the analysis assumes that IRA funds directly offset New York costs so the net benefits increase. 

The modeling updates purportedly will also consider the ramifications of IRA funding on adoption technologies.  For example, the IRA might fund more electric vehicle subsidies so that the adoption rate will increase.  One of my criticisms of the Draft Scoping Plan is that there are enormous presumptions that the public will acquiesce to, for example, purchase more expensive and less suitable electric vehicles simply because the Climate Act says they have to.  Any increase in adoption levels because there is more money available increase this type of speculation level further.

While I have not listened to every minute of every meeting, I am pretty sure that Carl Mas has not suggested that there were any relevant stakeholder comments on the Integration Analysis that need to be addressed.  I provided extensive comments on the Integration Analysis cost–benefit analysis and recommended that the Integration Analysis provide the costs, benefits, and expected emission reductions for every control measure proposed.  There are three possibilities why those comments have not been raised: the comment reviewers never provided any relevant comments to the modelers, the comments were received and have been ignored, or that they won’t be mentioned until the end so the response will be there is insufficient time to address them.  All three excuses are unacceptable given the responsibilities of the Climate Action Council that are mandated in the Climate Act.

Implementation

Based on comments from the leadership of the Climate Action Council their perception of the Scoping Plan is that it is just an outline of how the future energy system will transition to meet the net-zero targets.  I have heard repeated suggestions that particular implementation issues didn’t need to be addressed as part of this process because there will be an opportunity for stakeholder input when regulations are proposed that implement the changes needed.  The announcement that New York is going to implement a 100% zero-emission vehicle mandate by 2035 raises the question whether that is an appropriate approach.

At 12:29 of the meeting recording Jared Snyder announced that on the morning of this meeting that Governor Hochul announced that the Department of Environmental Conservation “will adopt the Advanced Clean Car rule by the end of the year.  That rule will require all sales of light-duty cars and trucks to be zero emissions by 2035 which means that all vehicles have to be either battery electric of fuel cell powered.  He said “that rule implements legislation that Governor Hochul signed a year ago in September 2021 that required 100% sales of electric vehicles by 2035”.  He also said that “it implements a recommendation of the Draft Scoping Plan to adopt the advanced clear cars rulemaking”.   

This portends what I predict will be the future for the regulatory process.  In this instance there is a law in place that mandates going forward whatever the cost, whatever the impacts, and whatever the feasibility.  What I think will happen is that when other regulations are proposed the rationale will be “it was a recommendation in the Scoping Plan so it has to be done” whatever the cost, impacts, or feasibility.  The fact that the Scoping Plan did not address the cost, impacts, or feasibility is immaterial to this line of reasoning and will be conveniently forgotten in the response to comments.

Response to Questions

The focus of the Hochul Administration response to comments has been on the concerns of the Climate Justice Working Group (CJWG) and particular members of the Climate Action Council.  For example, at 22:28 of the meeting recording Peter Iwanowicz asked about the New York State Thruway Service Area Redesign and Redevelopment Project that is presently underway.  He asked if anyone in the administration could give the Council an idea what’s going on with respect to fast charging at the Thruway rest stops stating: “I was personally blown away at driving into one of the newly reopened ones to see no electric vehicle charging there”.  He went on to say that “it’s pretty shocking to me, one as a member of the Council but two as an EV driver not to see chargers in the newly reopened station charging”. 

On the list of issues confronting the state’s energy transition this is pretty low on the priority list.  We have already seen the leadership of the Council claim that there is too little time to reconcile the electric grid projections made by the NYISO with the Integration Analysis.  Nevertheless, a Council member thinks that it is appropriate to cut into the precious little time available for the Council to consider the entirety of the energy transition with his personally biased question.  More importantly this is just an example of a recurring theme throughout the Scoping Plan process.  Any question from the CJWG and certain members of the Council gets a response no matter how removed from the issue at hand. 

In this case the response was “Let us get back to you”.  Left unsaid is we don’t have that information at our finger tips because we are trying to consider the entirety of the energy system.  The ultimate response may suggest that this is indicative of a bigger problem but I bet that the Administration answer will not raise that type of issue.  I will address this in more detail in a future post but a quick read of the summary of the New York State Thruway Service Area Redesign and Redevelopment Project shows that the Frequently Asked Questions explains that they are working on it:

Additionally, under direct guidance and consultation with the New York Power Authority (NYPA), Empire plans to implement a passenger vehicle electric charging program at all Service Areas to further New York’s goals of reducing emissions and expanding electric vehicle infrastructure across the State.

Conclusion

From what I have seen at the recent Climate Action Council meetings the promise to consider public stakeholder comments on the Draft Scoping Plan is being ignored.  There is no indication that the Hochul Administration intends to reconcile the differences in the generating resource projections in the Integration Analysis and any of the NYISO reports or the risks involved in depending upon a resource that is not currently available.  It is scary that the leadership of the Climate Action Council does not even appear to comprehend that addressing those issues would be appropriate and even if they can be convinced now, they will plead that there is insufficient time.  Furthermore, it is not clear to me that the Administration even intends to tell Council members that there any comments that question any of the fundamental assertions in the Draft Scoping Plan.

It is clear that the Hochul Administration’s primary goal in the Integration Analysis is political posturing – in particular to “prove’ that the benefits are greater than the costs.  It is also clear that the leadership of the Council is catering to particular members of the Climate Action Council that represent the interests of political supporters.  Given that Council legal mandate is to prepare a plan “achieve the State’s bold clean energy and climate agenda” the focus should be on that instead.

The legal mandate for the Scoping Plan is that it “shall inform the state energy planning board’s adoption of a state energy plan”.  The Climate Action Council membership is generally lacking the background, experience, and education to inform technical matters such as the fuel mix of the future generating system. Thomas Sowell said “It is hard to imagine a more stupid or more dangerous way of making decisions than by putting those decisions in the hands of people who pay no price for being wrong”.  To ignore the analyses of the subject matter experts who are responsible for reliability is insane.

As noted in this article I have written multiple articles about the differences in generating resource projections and dependency upon the magical dispatchable emissions-free resource.  When I submitted my draft scoping plan comments that explained why I believe the differences between the Draft Scoping Plan and the NYISO analyses have to be addressed in a public forum I thought it inconceivable that the response to comments would ignore the state’s experts.  At no time did I believe that the response to comments would meaningfully address my personal comments but ignoring the state’s experts is why I believe the response to comments is going to be worse than I thought possible.

Author rogercaiazzaPosted on October 9, 2022February 20, 2023Categories Climate Act Comments Submitted, Climate Act Scoping Plan, Climate Action Council2 Comments on Climate Action Council Response to Comments Is Worse Than I Thought

New York Independent System Operator Draft Scoping Plan Comments

The Climate Leadership and Community Protection Act (Climate Act) has a legal mandate for New York State greenhouse gas emissions to meet the ambitious net-zero goal by 2050.  The comment period for the Draft Scoping Plan that outlines how to meet that goal recently ended.  Here I describe comments submitted by the New York State Independent System Operator (NYISO). 

Everyone wants to do right by the environment to the extent that they can afford to and not be unduly burdened by the effects of environmental policies.  I submitted comments on the Plan and have written extensively on implementation of New York’s response to that risk because I believe the ambitions for a zero-emissions economy embodied in the Climate Act outstrip available renewable technology such that this supposed cure will be worse than the disease.  The opinions expressed in this post 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.

Climate Act Background

The Climate Act establishes a “Net Zero” target (85% reduction and 15% offset of emissions) by 2050. The Climate Action Council is responsible for preparing the Scoping Plan that will “achieve the State’s bold clean energy and climate agenda”.  They were assisted by Advisory Panels who developed and presented strategies to the meet the goals to the Council.  Those strategies were used to develop the integration analysis prepared by the New York State Energy Research and Development Authority (NYSERDA) and its consultants that tried to quantify the impact of the strategies.  That material was used to write a Draft Scoping Plan that was released for public comment at the end of 2021. The Climate Action Council states that it will revise the Draft Scoping Plan based on comments and other expert input in 2022 with the goal to finalize the Scoping Plan by the end of the year.

New York State Independent System Operator

The predecessor organization to the  NYISO was created after the Northeast Blackout of 1965.  New York’s seven investor-owned utility companies established the New York Power Pool (NYPP), to address the reliability problems exposed by the blackout.  In the 1990s New York’s electric system was de-regulated and the Federal Energy Regulatory Commission (FERC) recommended the formation of independent entities to manage energy transmission and generation and the NYISO was established to replace the NYPP.  Because the change to the wholesale electricity market is the reason for their existence, the NYISO unquestioningly supports market driven responses to any problem.  This is evident in their Draft Scoping Plan comments.

The NYISO manages the electric system.  They have to balance the instantaneous supply of electricity between the generators and customers across the state in the de-regulated electricity market.   They manage the supply of power and maintain the frequency across the state and with their connections to other operating systems.  In addition, the NYISO has to plan for future changes to the system.  At this time the biggest factor for change is the Climate Act so their comments are important to understand.

Comments on Draft Scoping Plan Recommendations

The NYISO comments included comments on four aspects of future power generation strategies:

  • Fossil Generator Retirements Must Be Coordinated with Replacement Resources,
  • Accelerate Growth of Renewable Generation and Other Resources,
  • Storage Provides Value and Must Work in Concert with Generation, and
  • Interconnection Process Improvements

The NYISO comments emphasized that the drive to retire fossil-fired generating units has to be coordinated with replacements. They explained (their emphasis added) that:

A sufficient fleet of new generation resources that satisfy the CLCPA, with the appropriate reliability attributes, must be available before the existing, traditional generators retire voluntarily or are forced out of service. An essential step to facilitate the orderly transition from traditional generators to emission-free electricity is promulgation of environmental regulations with defined milestones and ample lead time for new resource development. For example, firm regulatory milestones that define emission limits to be achieved on specified dates and compliance plan obligations that require generators to describe their approach to compliance give the NYISO planning processes essential information to consider and share with stakeholders.

NYISO is very concerned that Administration policy appears to build as many renewables as possible and shut down as much fossil infrastructure at the same time without a strategic plan.  The comments stated:

Proposing environmental regulations with defined milestones to facilitate the CLCPA mandates would help protect electric system reliability by allowing the existing reliability processes to more accurately review and evaluate reliability needs. The Draft Scoping Plan provides that the DEC should assess regulatory options to reduce emissions from fossil generators to the maximum extent practicable to achieve the requirements of the CLCPA while maintaining electric system reliability. The DEC should examine all potential regulatory options, including new regulations and/or permit requirements or amendment of current regulations and/or permitting requirements, to determine the most efficient, effective, and enforceable format to achieve the determined emissions reduction targets and the CLCPA requirements. The process should include effective mechanisms for input and comments from stakeholders prior to a formal proposal under the State Administrative Procedures Act, similar to the process used in promulgating the DEC “Peaker Rule,” 6 NYCRR Subpart 227-3

The NYISO strongly encourages the DEC and other state agencies to pursue new or amended regulations to implement emissions reductions in an orderly, predictable manner. The process should include effective mechanisms for input and comments from stakeholders prior to a formal proposal. This exact approach proved effective when the DEC developed the Peaker Rule in 2018-2019.

NYISO commented on the pace of accelerated growth of renewable generation and other resources necessary to meet the timeline and targets of the Climate Act. 

New resources will be necessary to serve load and provide reliability services in place of the generators that will retire. The Draft Scoping Plan contemplates accelerating the growth of large-scale renewable generation, offshore wind generation, distributed generation, and distributed energy resources. This growth is envisioned, in part, through recommendations that the state accelerate adoption of innovative technologies and programs that increase hosting capacity such as flexible interconnection, hybrid systems, and coupling resources with energy storage or controlled load.

NYISO makes the point that even the Draft Scoping Plan recognizes that wind, solar, and energy storage are inadequate to meet the requirements of a zero emissions electric system in 2040.

The Draft Scoping Plan also correctly observes that dispatchable and emissions-free resources, with operating characteristics similar to fossil generators, will be equally, if not more important, to protect consumers from electric service interruptions. It states:

“The current system is heavily dependent on existing fossil fueled resources to maintain reliability. To ensure reliability and that generation is available when needed, dual fuel capability currently provides oil back up during periods of high gas and electric demand. To replace these units, dispatchable and emissions-free resources will be needed to balance the system and must be significant in capacity, be able to come on-line quickly, and be flexible enough to meet rapid, steep ramping needs. The importance of developing large amounts of dispatchable generation is echoed in the Power Grid Study, Pathways Study, and NYISO Grid-in Transition and Climate Change Study.”

There is an additional complication that is often overlooked outside of the industry.  NYISO not only has to figure out how the infrastructure has to be changed to meet the Climate Act requirements they also have to design market mechanisms that will induce the development of the required infrastructure.

The NYISO supports the State’s consideration of how the wholesale markets can work in conjunction with financial incentives, e.g., Clean Dispatch Credits (“CDC”) or a renewable energy credit (“REC”)-like product, to increase the number of new flexible resources interconnecting to the electric grid. Such salable attributes could encourage new technologies that run on storable fuels, as opposed to wind or solar energy. Incentives could also encourage storage resources to possess the capability to charge from the grid, regardless of whether they are coupled with generation or load resources. The option, or technical capability, to charge from the wholesale electric grid improves provision of reliability services by increasing the overall ability of resources to inject or withdraw energy from the grid and lowers overall prices for consumers when the storage resource charges at a lower cost.

The NYISO commented that storage provides value and must work in concert with generation.  Their comments stated:

The Draft Scoping Plan observes that a portfolio of energy storage technologies will be needed to support balancing the intermittency of energy production as more weather-dependent renewable energy generation connects to the grid. Existing and newer, long-duration, storage will be needed to maintain reliability as the state approaches 2040. This suite of storage technologies, however, will be needed well before 2040 to reach the State’s energy policy goals.

The comments also provide an explanation why storage requirements are complicated.

While storage is a critical part of the future resource fleet, it is only capable of being part of the solution. The electric system will require electricity production to reliably meet demand across a wide range of conditions, every day of the year. Battery storage resources can help to fill in short term reductions in renewable resources output, but extended periods of low- or zero-renewable resource output will rapidly deplete the short duration storage capabilities of existing battery technologies. The resource fleet must include generators that operate on storable fuels in addition to renewable resources and batteries. At times, renewable resource production may be insufficient to serve other load and to provide the charging capability needed for the large levels of storage expected to enter the system.  These circumstances could extend the periods when storage resources are unable to supply energy to serve load. A successful transition requires replacing the reliability contributions of the existing fleet of generation as their performance capabilities will be no less essential in a future grid than they are today.

The concerns about market mechanisms for energy storage devices are also included in the comments:

The NYISO seeks the lowest production costs for consumers. To allow the markets to seek the lowest production cost, all technologies that can support the system needs must be able to participate. The NYISO regularly reviews market rules to accommodate participation of new and emerging resources, such as energy storage resources through market participation. When the capabilities of a particular technology require changes to existing market rules, the NYISO has evolved its markets and its Tariffs to accommodate participation along the lines of the Draft Scoping Plan description of expanding wholesale market eligibility participation rules for new policy resources. For example, in 2020, the NYISO implemented a participation model for energy storage resources (“ESRs”) and, in 2021, the NYISO expanded the participation model to accommodate co-located resources consisting of a combination of storage and other generating technologies, such as wind or solar. The NYISO integrated ESRs as supply resources in both instances, not as providers of transmission service.  Although ESRs, like other resources, can be dispatched to prevent an overload of a transmission facility, they do not change the thermal capability of a transmission facility and, therefore, do not change the ratings of transmission facilities. Like other types of suppliers, ESRs can provide dispatchable services to help mitigate transmission constraints and can serve load to meet local reliability needs and defer infrastructure investments.

The electric grid has been described as the world’s largest machine because the generators and users are all connected. The NYISO comments address interconnection process improvements:

To support development of new generation resources, the Draft Scoping Plan recommends that the state speed up the pace of processing interconnection applications and emphasize the need for right-sizing human resources at utilities to mitigate delays in application processing. Interconnection rules that support grid reliability, along with siting and other regulatory processes that facilitate timely review and consideration of projects, are necessary to effectively respond to the rapid growth of projects being developed in response to the state’s clean energy policies. The NYISO is committed to continue working with stakeholders to assess how its processes can be enhanced to better manage the increasing volume of resources while still providing the critical reliability analysis needed.

An underlying premise of the NYISO comments is the insinuation that there are significant logistical issues associated with schedule.  The comments describe changes to the process for connecting new generating sources to the grid:

The NYISO’s generation interconnection study process identifies potential adverse reliability impacts associated with new resources interconnecting to FERC jurisdictional distribution and transmission. The process, which requires significant coordination among the NYISO, facility developers, and affected transmission owners, identifies necessary system upgrades and their estimated costs to protect electric system reliability. This allows investors to make more informed investment decisions. To facilitate the dramatically increasing number of interconnection requests, the NYISO has been working with stakeholders to implement improvements to the interconnection study process. NYISO completed a comprehensive redesign of the interconnection study process in 2019. The redesign offers greater flexibility and expedited study options to developers seeking the necessary information to interconnect to the grid. The enhancements have proven effective in accelerating the interconnection study process.

The numbers for new projects are notable:

The improvements were applied for the first time to the Class Year 2019, the largest in the NYISO’s history, with 66 projects representing 7,254 MW of capacity, and helped the NYISO to bring the Class Year process to closure in record time. Since 2019, the number of new interconnection requests has continued to increase, reaching 197 requests per year and 387 projects with ongoing interconnection studies at the end of 2021.

Nonetheless, more changes are needed:

The NYISO continues to review and improve its interconnection process, including a current initiative under discussion with stakeholders regarding improved coordination between the various interconnection processes. In addition, the NYISO anticipates significant additional interconnection process changes will be required in later 2022 and 2023 prompted by FERC’s Notice of Proposed Rulemaking regarding Improvements to Generator Interconnection Procedures and Agreements (Docket No. RM22-14-000). Given the volume of interconnection requests it is imperative to further streamline interconnection processes.

My primary concern is generation but of course the NYISO has to also worry about transmission and distribution strategies for the use of diffuse renewable resources.  The NYISO comments described their concerns:

The Draft Scoping Plan recommends that the state expand electricity transmission and distribution systems to support energy delivery, and, building on the Power Grid Study, continue research, development, and demonstration (“RD&D”) and rapid deployment of advanced grid technology. The transmission-focused efforts should strive to alleviate transmission system bottlenecks to allow for better deliverability of renewable energy throughout the state and unbottle constrained resources to allow more hydro and/or wind imports and the ability to reduce system congestion. In addition, the Draft Scoping Plan encourages optimized utilization of existing transmission capacity and rights of way by utilities to accelerate investments in their local systems. These actions will facilitate renewables development and enhance the electrification of transportation and grow safety and resiliency.

The rest of the comments described the planning processes used.  I mentioned the NYISO’s unwavering support of market mechanisms to solve any electric system issue.  There are descriptions how public policy requirements are addressed with public planning.  Similarly, they address economic issues associated with transmission constraints. 

Relative to the Climate Act the most important planning process is related to reliability.  There is a good summary of the process that they use.

NYISO reliability planning processes evaluate reliability needs that are arising due to a shifting resource mix, as higher-emitting, controllable fossil generators deactivate and new renewable, intermittent generation, and other clean energy supply resources enter service. The NYISO’s reliability processes form a baseline system that identifies transmission and resources expected to enter into service, and transmission that is needed to maintain reliability. Additional transmission infrastructure needed for public policy requirements, like the CLCPA, build on these reliability analyses and solutions.

The NYISO comments seems to be satisfied that the Draft Scoping Plan adequately addresses the NYISO reliability planning process:

The Draft Scoping Plan recommends that the State conduct established biennial evaluations to assess the state of bulk power system reliability in consultation with the NYISO and the New York State Reliability Council. The NYISO supports this recommendation and agrees that ongoing evaluations and transmission system reliability planning are critical to maintaining an energy secure and sustainable system for New York. The NYISO has established processes that should be used to support the Draft Scoping Plan recommendation. The NYISO’s reliability planning processes identify reliability risks and, if found, include actions such as solicitations of transmission and resource solutions needed to maintain reliable electric service. These processes are designed to provide the baseline reliable system on which to build the grid of the future, integrating renewable resources and storage to attain the requirements of state climate change laws. The frequency and structure of these planning studies allow the NYISO and stakeholders to regularly review study assumptions and scenarios based on up-to-date operational experience. Review of the State’s power system performance in conformance with established operations requirements will be critically important throughout the clean energy transition.

The reference for this commitment (footnote 37) is:

Draft Scoping Plan at p. 171 (“Continual Evaluation: The State should conduct established biennial evaluations to assess the state of bulk power system reliability in consultation with the federally designated electric bulk system operator (NYISO) and the State and federally jurisdictional entity the New York State Reliability Council. These evaluations should ascertain if any program adjustments are needed to ensure continued safe and adequate electric service. They should be informed by the review of the State’s power system performance in conformance with established operations requirements and by relevant studies including the NYISO’s Reliability Needs Assessment”). 

There are two issues related to this continual evaluation requirement.  First and foremost, I believe that this evaluation should be a prerequisite for any implementation regulations. Once the Scoping Plan is complete it is the guideline for the New York’s energy planning but regulations have to be developed to implement the changes.  It is inappropriate to start implementing rules if the organization responsible for reliability has reservations about continued safe and adequate electric service. Secondly, I am not privy to the discussions between the NYISO and the Administration and neither are most members of the Climate Action Council.  To this point no one on the Council has spoken up to reign in the loudest ideological voices who believe the reductions have to be instituted no matter what, that the intent of the Climate Act is to ban all combustion sources, and that there are no reliability issues related to an electric system that depends upon renewable energy.

The NYISO resource adequacy comments are at odds with the vocal ideologues.  The comments emphasize that all options have to be considered at this time:

The Draft Scoping Plan recommends that the State and the NYISO examine all resource adequacy options and continue to improve compensation for resource adequacy contributions. It specifically calls for the state to continue working with the NYISO “on market enhancements that facilitate the resource transition, support investment, minimize costs to consumers, eliminate buyer- side mitigation (BSM) for Climate Act resources, and meet reliability.” The NYISO is continuously evaluating the accuracy and robustness of its underlying resource adequacy models, reliability metrics and probabilistic tools, and updating them to incorporate changing characteristics of the power system and resource fleet. The NYISO welcomes the opportunity to continue working on these efforts with the state and to build on the recent success of the comprehensive mitigation reform effort.

The only concession made by the Climate Action Council to the reliability concerns of the state’s experts and organizations who are responsible for keeping the lights on was a listening session last summer.  The NYISO comments summarize the issues:

The combination of solar, wind, and today’s battery storage technologies are not sufficient on their own to provide the services necessary to support reliability on the power grid. The resource adequacy challenge becomes attracting and retaining sufficient resources, including flexible resources, to maintain reliable service. The NYISO-administered energy and ancillary service markets alone do not provide enough revenue to attract sufficient investment to maintain adequate resources for system reliability. Thus, capacity markets provide and will need to continue to provide an additional revenue stream to support adequate investment to maintain the required levels of resource adequacy. As the fleet transforms and new challenges emerge, ongoing efforts will be needed to ensure that together the energy, ancillary service, and capacity market designs continue to support adequate investment.

The final comment I want to mention discusses the markets that are critical to achieving the Climate Act.  It is only possible to fully comprehend the magnitude of the challenge of a zero-emissions electric system if you understand the markets described.  I have seen no indication that the majority of the Council members have that knowledge.

The NYISO supports reliability primarily through three complementary markets: energy, ancillary services, and capacity. Wholesale electricity markets have successfully delivered efficiency gains on the grid and cleaner energy production, making them an effective platform for reflecting public policy and technological influences efficiently and reliably. In these markets, energy, regulation, and operating reserves are simultaneously procured to meet demand while respecting transmission limits. The NYISO has a proven record of enabling the entry of new technologies into the state’s competitive wholesale electricity markets consistent with state public policy objectives. The NYISO-administered wholesale energy markets are critical to successfully fulfilling the mission and goals of reliability and economic efficiency while also shifting investment risk from ratepayers to asset owners and serving as an effective platform for achieving New York State environmental objectives. As such, the NYISO is actively engaging stakeholders and policymakers in developing plans to meet the future challenges expected to arise from a grid characterized with high levels of energy supply from intermittent renewable and Distributed Energy Resources (“DER”).

Conclusion

It is telling that the NYISO comments had to emphasize the point that it is not good policy for the state to force fossil generator retirements until appropriate replacement generating resources are available.  Unfortunately, state agencies are promulgating policies that are not consistent with this obvious point.  The NYISO comments state the obvious point that an enormous quantity of renewable resources is going to have to be developed and point out that energy storage will be needed.  The comments also point out that dispatchable and emissions-free resources will be needed to balance the system.  Unfortunately, the comments do not explain the difficulty and challenge of developing this new resource and the risk of relying on this technology for a future electric system.

Never forget that the Climate Act is all about politics. It is evident that there are reliability concern disconnects between the public face of the Administration, the Climate Action Council scoping plan development, and the NYISO.  In order to address the problems raised by the NYISO the Administration is going to have to burst the bubbles of one or more of the pet positions of some of the Climate Act’s fervent supporters and their organizations.  The alternative is putting the state’s residents at unacceptable reliability risks.

Author rogercaiazzaPosted on September 20, 2022February 19, 2023Categories Climate Act Comments SubmittedLeave a comment on New York Independent System Operator Draft Scoping Plan Comments

New York State Reliability Council Draft Scoping Plan Comments

The Climate Leadership and Community Protection Act (Climate Act) has a legal mandate for New York State greenhouse gas emissions to meet the ambitious net-zero goal by 2050 and the comment period for the Draft Scoping Plan that outlines how to meet that goal recently ended.  Here I describe comments submitted by New York State Reliability Council.  This is another instance in which the experts are not explicitly saying this is nuts but a little bit of reading between the lines indicates that they believe the proposed Climate Act transition will end badly.

Everyone wants to do right by the environment to the extent that they can afford to and not be unduly burdened by the effects of environmental policies.  I submitted comments on the Plan and have written extensively on implementation of New York’s response to that risk because I believe the ambitions for a zero-emissions economy embodied in the Climate Act outstrip available renewable technology such that it will adversely affect reliability, impact affordability, risk safety, affect lifestyles, and will have worse impacts on the environment than the purported effects of climate change in New York.  New York’s Greenhouse Gas (GHG) emissions are less than one half one percent of global emissions and since 1990 global GHG emissions have increased by more than one half a percent per year.  Moreover, the reductions cannot measurably affect global warming when implemented.   The opinions expressed in this post 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.

Climate Act Background

The Climate Act establishes a “Net Zero” target (85% reduction and 15% offset of emissions) by 2050. The Climate Action Council is responsible for preparing the Scoping Plan that will “achieve the State’s bold clean energy and climate agenda”.  They were assisted by Advisory Panels who developed and presented strategies to the meet the goals to the Council.  Those strategies were used to develop the integration analysis prepared by the New York State Energy Research and Development Authority (NYSERDA) and its consultants that tried to quantify the impact of the strategies.  That material was used to write a Draft Scoping Plan that was released for public comment at the end of 2021. The Climate Action Council states that it will revise the Draft Scoping Plan based on comments and other expert input in 2022 with the goal to finalize the Scoping Plan by the end of the year.

New York State Reliability Council

The New York State Reliability Council (NYSRC) is the other organization that has reliability responsibilities in New York.  According to their Draft Scoping Plan comments:

The NYSRC was established to promote and preserve the reliability of the New York State Power System by developing, maintaining and, from time to time, updating the reliability rules (“Reliability Rules”) that govern the NYISO’s operation of the state’s bulk power system. The NYSRC develops Reliability Rules in accordance with standards, criteria and regulations of North American Reliability Corporation (“NERC”), Northeast Power Coordinating Council (“NPCC”), FERC, the Commission, and the Nuclear Regulatory Commission  The NYISO/NYSRC Agreement provides that the NYISO and all entities engaged in transactions on the New York State power system must comply with the Reliability Rules adopted by the NYSRC.  The NYSRC Reliability Rules have been adopted by the New York State’s Public Service Commission under its Public Service Law authority prescribing reliability rules necessary to ensure safe and adequate service.

Installed Reserve Margin

The standard for the required generating capacity relative to the expected load is called the Installed Reserve Margin.  The NYSRC comments on the Draft Scoping Plan defined the standard and talked about the expected changes in what is required now and what is expected in the future:

One of the major responsibilities of the NYSRC is to set the annual Installed Reserve Margin (IRM) for the New York Power System. The IRM is the reserve resource capacity over and above that required to meet peak load and is needed to maintain minimum levels of reliability in New York. This is necessary based on the recognition that the availability of generation resources may be limited by forced outages or loss of fuel supply, including periods with little to no sun or wind. Typical unavailability figures for fossil fueled generation in New York is in the order of ~15% (~85% availability) largely based on forced outage performance.

NYSRC determined that the IRM for the 2022 – 2023 capability year is 19.6% and that IRM was adopted by the New York Public Service Commission for the New York Control Area on March 16, 2022 (Case 07-E-0088).

The table shows the increase in required reserve capacity from 22,577 MW (78.15% IRM) in 2025 to 102,517 MW (205.94% IRM) in 2050. These numbers need to be pondered in perspective. To supply a forecasted peak load of 49,780 MW in 2050, 152,297 MW of capacity will be needed, roughly 3 times the peak load at that time. The corresponding numbers for 2030 are that for a peak load of 29,640 MW, a capacity of 68,244 MW is needed, more than twice as much. Given that the 2020 installed capacity is 44,023 MW, around 22,000 MW of additional capacity must be built in the next 7-8 years.

NYSRC Comments

The NYSRC comments included an illustration of the magnitude of future resource requirements based on the Draft Scoping Plan for Scenario 3, Annex 2.  The following table shows the amount and type of installed capacity required to meet Climate Act goals and meet NYSRC’s resource adequacy reliability criterion of 1-day-in-10-years. The text in red was added to demonstrate the total installed capacity, the peak load, the required reserve capacity and the IRM for the years 2025 through 2050.

The comments describe the ramifications of these results:

The table shows the increase in required reserve capacity from 22,577 MW (78.15% IRM) in 2025 to 102,517 MW (205.94% IRM) in 2050. These numbers need to be pondered in perspective. To supply a forecasted peak load of 49,780 MW in 2050, 152,297 MW of capacity will be needed, roughly 3 times the peak load at that time. The corresponding numbers for 2030 are that for a peak load of 29,640 MW, a capacity of 68,244 MW is needed, more than twice as much. Given that the 2020 installed capacity is 44,023 MW, around 22,000 MW of additional capacity must be built in the next 7-8 years. 

The analysis makes a couple of assumptions:

The table assumes that intermittent generation capacity from wind and solar resources increases from 13,319 MW in 2025 to 96,629 MW in 2050.

The table also assumes that the magnitude of new technology requirements for Zero-Carbon Firm Resource (RNG, green hydrogen or other) increases from 5,489 MW in 2035 to 25,359 MW in 2050. Long-Term Battery Storage or other increases from 1,500 MW in 2025 to 19,212 MW in 2050. None of these technologies presently exist commercially for utility scale application.

It is politically impossible for these experts to explain that not only do these technologies not exist commercially but there are physical limitations that suggest that a commercially viable and affordable resource like this may never be developed.  The reality is that this is not just a stretch, it is a massive leap in technology.

The NYSRC comments go on to explain that there are other implementation factors that complicate the transition that the Draft Scoping Plan cavalierly claims will happen because of political will:

Some of the new renewable resources will be located behind the meter at retail levels (i.e.. solar PV, batteries, and EV charging). This will also require investment in distribution system automation to protect reliability, cyber-security and public safety. The role of the Distribution System Operator will become even more critical in this complex operating environment.

I think that the observation that the logistics of building the infrastructure necessary to meet the Climate Act goals is particularly important:

The amount of new generation that needs to be built to maintain system reliability in a zero-carbon environment is sobering. This change represents an unprecedented increase in capital investment in resource capacity along with a corresponding increase in transmission and distribution capacity. Further, this transition must be managed during a time of high inflation, and supply chain delays, permitting challenges, and high demand for renewable resource equipment, not just in New York, but around the globe.

There is another technical issue.  My comments on the electric system transition pointed out that it is not clear if the Draft Scoping Plan considered ancillary services.  The NYSRC comments explain:

One other aspect that must be kept in mind is that renewables and storage devices work internally with direct current (DC) and must ultimately be interconnected to a grid that works with alternating current (AC). To accomplish this, devices called inverters that transform DC into AC and vice versa are used. These inverter-based resources (IBR) are starting to be used in increasing numbers in the USA and it is becoming clear through actual reliability impact events that more work is still necessary with respect to the reliability of IBRs, and standards need to be adopted for a reliable transition.

I found no mention of this issue in the Draft Scoping Plan spreadsheets of inverter costs.  Finally, it is telling that the NYSRC notes that there will be a learning curve for operating a system based on intermittent and diffuse renewables. 

Furthermore, even if we build all this capacity on time, operating a system largely based on renewable resources is not the same as operating the system of today. The performance and responsiveness of existing generation must be emulated to keep the lights on. We have no experience in operating a bulk power system that we will need to operate by 2030 and beyond.

The fact is that New York’s current stringent reliability rules are based on hard learned experience.  It is incredibly optimistic to think that the system will make the transition without unanticipated issues that result in blackouts.

NYSRC Recommendations

One of the things that I think is most important is a feasibility study.  As a result, I was hearted by the NYSRC recommendation that “the proposed Climate Action Council strategy be reviewed for application in the short-term based upon practical considerations for the period 2025 to 2030”.  The NYSRC comments list the rationale for this review:

Practical considerations affecting the availability, schedule and operability for new interconnections include: interconnection standards; site availability; permitting; resource equipment availability; regulatory approval; large volume of projects in NYISO queue and study process; scalability of long-term battery storage and other technologies; operational control; impact of extreme weather; consideration of a must run reliability need for legacy resources. In addition, the pace of transportation and building electrification, the timing of any natural gas phase-out and their impact on the electric T&D system must also be carefully studied from technical, economic and environmental perspectives. Together, these practical considerations require the development of reliable zero emission resources to be conscientiously sequenced and timed in the near term (through 2030) to ensure broader GHG reductions in all sectors beyond 2030.

It is noted that delaying or changing a CLCPA goal would be preferable to the risk of a wide scale blackout and associated public safety concerns if it should ever appear that the implementation of the CLCPA’s goals may pose a significant risk to electric system reliability, including the potential risk of a system-wide blackout,

In conclusion, there are many unknowns in the transition to CLCPA’s goals. The risks of not reaching a goal in the time required is real. The CAC and all participants in the transition to an emissions free grid need to stay alert to the critical importance of keeping the system functioning within reliability criteria. Each time that an existing unit must retire or stop operating through some regulatory action, there is a need to confirm that reliability criteria will still be met without that unit.

Conclusion

I have written several articles pointing out that the Climate Action Council is not listening to the experts.  The first post (New York Climate Act: Is Anyone Listening to the Experts?) described the NYISO 2021-2030 Comprehensive Reliability Plan (CRP) report (appendices) released late last year.  The difficulties raised in the report are so large that I raised the question whether any leader in New York was listening to this expert opinion.  The second post (New York Climate Act: What the Experts are Saying Now) highlighted results shown in a draft presentation for the 2021-2040 System & Resource Outlook that all but admitted meeting the net-zero goals of the Climate Act are impossible on the mandated schedule.  Finally, I described the “For discussion purposes only” draft of the 2021-2040 System & Resource Outlook report described in the previous article.  This report highlights multiple feasibility concerns that must be addressed to have any hope of this working, shows that implementation on the schedule proposed will be very difficult and highlights the need for implementation planning. 

The NYSRC comments reiterate all the points mad by the NYISO, The organizations responsible for the relatability of the New York electric grid have raised numerous technological issues that must be addressed going forward for the transition.  Unfortunately, the loudest voices on the Climate Action Council have said that anyone saying there are issues related to using renewable resources are misinforming the public and no leaders on the Council have spoken up to reign in those statements.  If Climate Act implementation to net-zero does not address the issues raised then blackouts are inevitable.

Author rogercaiazzaPosted on September 13, 2022February 19, 2023Categories Climate Act Comments Submitted, Ultimate problem of resource availabilityLeave a comment on New York State Reliability Council Draft Scoping Plan Comments

Climate Action Council Economywide Strategies Subgroup

New York’s Climate Leadership and Community Protection Act (Climate Act) mandates that a scoping plan be developed to guide the next Energy Plan.  In order to address particular draft scoping plan issues three subgroups have been setup to address particular issues.  This article describes my initial impression of the economywide strategies subgroup.  I am not sure why they did not simply refer to these strategies as carbon pricing mechanisms because that is what they are talking about.

Everyone wants to do right by the environment to the extent that they can afford to and not be unduly burdened by the effects of environmental policies.  I submitted comments on the Plan and have written extensively on implementation of New York’s response to that risk because I believe the ambitions for a zero-emissions economy embodied in the Climate Act outstrip available renewable technology such that it will adversely affect reliability, impact affordability, risk safety, affect lifestyles, and will have worse impacts on the environment than the purported effects of climate change in New York.  New York’s Greenhouse Gas (GHG) emissions are less than one half one percent of global emissions and since 1990 global GHG emissions have increased by more than one half a percent per year.  Moreover, the reductions cannot measurably affect global warming when implemented.   The opinions expressed in this post 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.

Climate Act Background

The Climate Act establishes a “Net Zero” target (85% reduction and 15% offset of emissions) by 2050. The Climate Action Council is responsible for preparing the Scoping Plan that will “achieve the State’s bold clean energy and climate agenda”.  They were assisted by Advisory Panels who developed and presented strategies to the meet the goals to the Council.  Those strategies were used to develop the integration analysis prepared by the New York State Energy Research and Development Authority (NYSERDA) and its consultants that tried to quantify the impact of the strategies.  That material was used to write a Draft Scoping Plan that was released for public comment at the end of 2021. The public comment period on the Draft ended on July 1.

In order to address particular Draft Scoping Plan issues three Climate Action Council subgroups have been setup to address the following issues:

  • Economywide strategies
  • Alternative Fuels
  • Gas System Transition

Each subgroup is supposed to develop a better understanding of their topic, focus on implementation issues, and then provide information to the full Council so that it can be incorporated into the Final Scoping Plan.

Public Comments

The Climate Action Council states that it will revise the Draft Scoping Plan based on comments and other expert input in 2022 with the goal to finalize the Scoping Plan by the end of the year.  According to remarks made at the July 11, 2022 Climate Action Council meeting about 35,000 comments were submitted.  If the Council were to truly consider public comments, then the comment review process would have been on-going.  The State claims that they did not do that so it will be some time before the Council will start getting information from those submitted comments.  It is unimaginable that the Council members will be able to review all the comments so it is very likely that they will rely on summaries written by agency staff. 

It appears that each subgroup is taking a different approach to considering public comments relative to their topic.  The alternative fuels workplan hopes to discuss public comments at their fifth meeting on July 27 and hope to finalize their framework at their eighth meeting in early September.  The economywide strategies workplan holds off discussion of public comments until the sixth meeting on August 22.  That is one meeting before the final scheduled meeting.  The gas system transition workplan does not even mention public comment consideration.  In my opinion, the alternative fuels workgroup is at least trying to consider public input.  The economywide strategies workgroup is only paying lip service to public input despite the fact that the Draft Scoping Plan posed specific questions about the proposed strategies in the Plan.  The alternative fuels workgroup does not apparently even want to consider public input. 

Expert Input

The Climate Action Council has stated that it will revise the Draft Scoping Plan based on other expert input in 2022.  I think there is a problem with their perception of expert input.  The Climate Act itself is based on the opinionated expertise of the authors.  Their expertise was over-confident, proscriptive, biased, and naïve.  They over confidently presumed that a net-zero transition was simply a matter of political will.  The law includes proscriptive mandates for specific amounts of different renewable energy technology.  There is a bias against the only scalable, dispatchable, zero-emissions generating resource – nuclear power.  The law naïvely assumes that untested technology will be available to meet their arbitrary schedule. 

If it was apparent that the Council intended to incorporate unbiased outside expertise then I would not be worried.  It is not surprising this is not the case given that some members were actively involved in the development of the language of the law so they apparently think that they don’t need any input from experts that may disagree with their pre-conceived notions.  My biggest concerns are reliability and affordability.  There is no workgroup addressing reliability and some vocal members have flatly stated that reliability in an electric grid that relies on renewables is not an issue.  The deference of the Council leadership to these ideologues who haven’t the background, education or experience to have a worthwhile opinion on that subject is disappointing and the apparent lack of urgency to engage with the experts who do have that expertise is frightening.

I am only going to discuss the economywide strategies subgroup.  In my comments on economywide strategies I made the point that that the relevant chapter was written to address specific issues raised by the Climate Action Council.  The Draft Scoping Plan only considers three economy-wide approaches and not the possibility that not doing anything like this might be the better choice. As a result, the chapter gets bogged down into details about specific issues raised by council members rather than looking at whether the theory of a price on carbon has worked well in practice. 

Economywide Strategies

According to the June 27, 2022 meeting presentation: “This subgroup will provide further evaluation and guidance regarding the three economy-wide approaches identified in the Draft Scoping Plan.” 

At their second meeting, the results of a New York State Energy Research & Development Authority and Resources for the Future analysis were presented.  Members of the Workgroup should keep in mind that the NYSERDA-RFF Carbon Pricing Project: Lessons Learned from the Literature Review and Policy Design Experience presentation is not a critical review of carbon pricing approaches.  Instead, it describes the theory without regard to issues and summarizes three ways to implement a carbon pricing scheme.  There are warning signs that should be highlighted and there are some misconceptions included in the presentation.

The first slide in the New York Policy Context section poses the question why jurisdictions pursue carbon pricing.  It claims that “Pricing provides an efficient market signal to reduce emissions” and goes on to argue that:

  • Does not require policy makers to pick technologies and creates incentives for private actors to make clean investments and reduce fossil fuel use
  • Provides cost-effective implementation by investing in low-cost emissions reductions
  • Internalizes the environmental cost of emissions in economic decisions
  • Carbon pricing involves price stability that yields a behavioral response that is three times greater than market-driven price variations of the same magnitude (Andersson 2019). 

The presentation claims that jurisdictions pursue carbon pricing because it “does not require policy makers to pick technologies and creates incentives for private actors to make clean investments and reduce fossil fuel use”.  However, the later Carbon Fee versus Emissions Cap slide states “Recent emissions cap programs have opted for a cap-and-invest model which directs carbon revenues toward program-related investments to accelerate emissions reductions”.  Directing carbon revenues explicitly picks technologies contradicting this “benefit”.  In my Draft Scoping Plan comments, I quoted Paul Homewood who made the point that “The only logical reason for a carbon tax is to reduce emissions. Such a tax might help to reduce energy consumption, but only at punitive levels, because energy demand is so inelastic.”  Keep in mind that there aren’t any cost-effective retrofit technologies to reduce greenhouse gas emissions so the only way to reduce fossil fuel use is to convert energy consumption to a less emitting resource or reduce use.

The presentation claims that jurisdictions pursue carbon pricing because it “Provides cost-effective implementation by investing in low-cost emissions reductions”.  One of the underlying presumptions in any carbon price program is that the funds received will be spent effectively.   I have evaluated the results of the investments made by regulatory agencies to date in RGGI measured as the cost per ton reduced.  The RGGI states have been investing investments of RGGI proceeds since 2008 but their investments to date are only directly responsible for less than 5% of the total observed reductions.  Furthermore, from the start of the program in 2009 through 2017, RGGI has invested $2,527,635,414 and reduced annual CO2 emissions 2,818,775 tons.  The resulting cost efficiency, $897 per ton reduced, far exceeds the Social Cost of Carbon (SCC) that represents the value of reducing CO2 today to prevent climate change damages in the future. 

Finally, the presentation claims that jurisdictions pursue carbon pricing because it “Internalizes the environmental cost of emissions in economic decisions”.  The Draft Scoping Plan avoided societal costs from GHG emissions are the largest benefits claimed.   In my comments on the Plan benefits I included a description of the SCC and the caveats associated with the alleged benefits.  The methodology calculates the benefits out to 2300 so they will accrue to the next 11 generations.  Jurisdictions that cannot afford investment in resilient agriculture, sea-level rise mitigation, and disease prevention have larger impacts so the benefits will accrue to them rather than New York.  The bottom line is that the costs are real but the internalized environmental benefits are mostly imaginary and will not accrue to New York in any event.

Misconceptions

There are misconceptions in two claims that carbon pricing has been successful that need to be addressed for a full understanding of economywide strategies.

The first claim states that “Murray and Maniloff (2015) find that RGGI has driven about half of the region’s emission reductions in the power sector since the program’s inception”.  I disagree with conclusion.  The Murray and Maniloff analysis relied on econometric modeling that assumes that compliance with the program is made more efficient by an allowance acquisition program that resembles commodities markets.  In reality, based on my experience in the utility allowance trading business and discussions with my peers, the vast majority of companies treat allowance acquisition as simply a tax.  Allowances are purchased in the auctions or on the secondary market based on short-term compliance needs.  The over-riding concern is compliance and there is no efficiency gain due to the market.

In my opinion the Murray and Maniloff analysis assumed that companies would do things to reduce their CO2 emissions rather than just buying allowances as a tax.  However, the only thing that affected sources could do is to improve combustion efficiency to use less fuel.  Fuel costs are the over-riding driver for operating costs so plants have already looked into this and probably made the efficiency changes that they could afford so there were few opportunities left to become more efficient.  In addition, EPA’s New Source Review program can penalize old facilities that make efficiency improvements because they are concerned that they those improvements could extend the life of a higher emitting facility.  Based on my experience and discussions with colleagues in the industry affected generating units did not do anything to explicitly control emissions for RGGI compliance.  More importantly when this analysis observed facilities shutting down, they claimed that was due to RGGI.  In fact, all the facilities that I am familiar with would have shut down even if RGGI were not in effect.  For all these reasons I do not accept this reference as credible evidence for RGGI success.

There are two ways to determine why the emission reductions occurred using data and observations. The first way to determine why emissions dropped over this period is to evaluate the emissions data.  I queried the database at EPA Clean Air Markets Division data and maps  and downloaded emissions, load and heat rate data for the nine RGGI states for the years 2000-2018.  In order to determine what fuel was used I had to use these data instead of the data in the RGGI system because the EPA data includes fuel type information.  This means that there are differences in the annual totals because the EPA data set has more units in it.  Prior to the start of RGGI I had to ask for data from “all programs” and for consistency kept that constraint even after the start of RGGI. 

The RGGI Nine-State EPA Clean Air Markets Division Annual Emissions Data by Primary Fuel Type table lists load and CO2 mass data from 2006 to 2018.  In order to establish a baseline, I used the average of the three years prior to the start of the program.  The CO2 mass and load from coal-fired units went down over 80% from the baseline to 2018.  The RGGI states have a relatively high concentration of residual oil-fired units and load and CO2 mass went down nearly as much.  Diesel and other oil-fired units went down over 50%.  On the other hand, natural gas firing loads went up 35% and CO2 mass went up 43%.  Because natural gas firing has much lower CO2 per MWhr emission rates the total CO2 mass went down 41% from my baseline to 2018.  Because fuel prices are the primary driver of unit operations and because the RGGI allowance price was relatively small in comparison to the fuel price differential of natural gas relative to coal and oil I conclude that the primary driver of RGGI region CO2 emission reductions was fuel switching not RGGI.

The second way to determine the effect of RGGI is to use RGGI’s own information.  The Investment of RGGI Proceeds in 2017 report tracks the investment of the RGGI proceeds and the benefits of these investments throughout the region. I recently calculated that the total annual reductions since the start of the program were: 4,014,410 MWh of electricity use avoided, 9,824,199 MMBtu of fossil fuel use avoided, and 2,818,775 short tons of CO2 emissions avoided.  The total reduction in load from the baseline until 2018 is 51,098,013 MWh so the direct investments of RGGI auction proceeds were responsible for 7.9% of the observed reduction in load.  The total reduction in CO2 from the baseline until 2018 is 52,202,198 tons so the direct investments of RGGI auction proceeds were responsible for only 5.4% of the observed emissions reduction. 

The second claims that “Carbon pricing involves price stability that yields a behavioral response that is three times greater than market-driven price variations of the same magnitude (Andersson 2019)”.  The abstract states “This quasi-experimental study is the first to find a significant causal effect of carbon taxes on emissions, empirically analyzing the implementation of a carbon tax and a value-added tax on transport fuel in Sweden”.    This analysis modeled emission reductions with and without the carbon tax and then had to “disentangle” the carbon tax and the extension of a value-added tax to include gasoline and diesel.  Based on my findings for RGGI this kind of modeling is prone to prove the pre-conceived notions of the researcher.  He claims that this is the first quasi-experimental study to find a significant causal effect of a carbon tax on emissions.  However, he admits and the NYSERDA-RFF presentation neglects to point out that:

This result is in contrast to earlier empirical studies that find no effect from the Swedish carbon tax on domestic transport CO2 emissions (Bohlin 1998, Lin and Li 2011), and the estimated reduction is 40 percent larger than an earlier simulation study finds (Ministry of the Environment and Energy 2009). In fact, my finding differs from all earlier empirical studies of carbon taxes, which find that the taxes have had very small to no effect on CO2 emissions in the countries that implemented them (Bohlin 1998, Bruvoll and Larsen 2004, and Lin and Li 2011).

Discussion

I believe that the answer to the Scoping Plan has always been in the back of the book.  There never has been any intention to incorporate comments to revise the Draft Scoping Plan that did not comport with the Hochul Administration’s idea of what their political base wants.  The first Climate Action Council meeting of the year was not held until the beginning of March thus wasting two months.  There was no plan to process submitted comments on an on-going basis because there was no perceived need to address inconvenient comments.  The “plan” to address comments promises to address them all but I predict that many substantive criticisms will essentially be ignored.  The comment will be acknowledged but not addressed.

They are going through the motions with respect to the subgroups too.  The three subgroups ostensibly will provide the rest of the Council their considered opinions of the issues and, I presume, recommendations on how to proceed.  I am a student of market-based air pollution control programs so I am most familiar with the economywide strategies topic.  Everybody who volunteered to be on this subgroup has a vested interest in adding carbon pricing to the recommendations for the Final Scoping Plan.  They got a briefing from NYSERDA and RFF who both are biased towards the approach.  I showed that their briefing presentation was prejudiced.  There are unmentioned issues with carbon pricing and at least one of the examples described selectively chose results that supported their pre-conceived conclusions and ignored contrary evidence.

The economywide strategies subgroup workplan does not plan to consider public comments until their sixth meeting despite the fact that there was a specific request for comments on the economywide strategies chapter.  The Draft Scoping Plan chapter on the topic was written to cater to Council member comments and suggestions and I showed above that the presentation did not suggest that there might be issues associated with a carbon pricing scheme.  As a result, I believe that the final recommendation will reflect the agendas of Council members rather than the best interests of New York.  However, I think that their recommendations may not be in the back of the book.

Conclusion

Based on my experience and observations of trading programs the only way for a carbon pricing scheme to actually reduce emissions is to set the price at punitive levels.  Consider that in the most recent legislative session the Climate and Community Investment Act  intended to provide funding for the Climate Act never made it out of committee.  At this time there is $2.3 billion in utility debt statewide and one in six households is more than two months behind on utility bills.  When gasoline prices went up this year the Governor suspended motor fuel and diesel motor fuel taxes because:

“Fuel prices have surged in recent months, hurting working families and small businesses the most, and it is crucial that we provide New Yorkers relief,” Governor Hochul said. “By suspending certain fuel taxes for the next seven months, New York is providing some $609 million in direct relief to New Yorkers — a critical lifeline for those who need it most. At a time when families are struggling because of economic headwinds and inflation, we will continue to take bold action to reduce the economic burden on New Yorkers and get money back in their pockets.”

I cannot imagine a scenario in which the proponents of carbon pricing can ever sneak a scheme through that would have a high enough cost to actually reduce carbon emissions without immediate political pushback.  The answer in the back of the book for economywide strategies is most likely pay lip service to it but don’t do anything that will give political ammunition to the opposition.

Finally, note that I did submit a letter to subgroup members based largely on this material.  I do not expect any response but if I do hear something I will update this post.

Author rogercaiazzaPosted on July 15, 2022February 19, 2023Categories Climate Act, Climate Act Cap & Invest, Climate Act Comments SubmittedLeave a comment on Climate Action Council Economywide Strategies Subgroup

Climate Act Comments by New York Energy and Climate Advocates

The Climate Leadership and Community Protection Act (Climate Act) has a legal mandate for New York State greenhouse gas emissions to meet the ambitious net-zero goal by 2050 and the comment period for the Draft Scoping Plan that outlines how to meet that goal recently ended.  Here I describe comments submitted by New York Energy and Climate Advocates.

Everyone wants to do right by the environment to the extent that they can afford to and not be unduly burdened by the effects of environmental policies.  I submitted comments on the Plan and have written extensively on implementation of New York’s response to that risk because I believe the ambitions for a zero-emissions economy embodied in the Climate Act outstrip available renewable technology such that it will adversely affect reliability, impact affordability, risk safety, affect lifestyles, and will have worse impacts on the environment than the purported effects of climate change in New York.  New York’s Greenhouse Gas (GHG) emissions are less than one half one percent of global emissions and since 1990 global GHG emissions have increased by more than one half a percent per year.  Moreover, the reductions cannot measurably affect global warming when implemented.   The opinions expressed in this post 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.

Climate Act Background

The Climate Act establishes a “Net Zero” target (85% reduction and 15% offset of emissions) by 2050. The Climate Action Council is responsible for preparing the Scoping Plan that will “achieve the State’s bold clean energy and climate agenda”.  They were assisted by Advisory Panels who developed and presented strategies to the meet the goals to the Council.  Those strategies were used to develop the integration analysis prepared by the New York State Energy Research and Development Authority (NYSERDA) and its consultants that tried to quantify the impact of the strategies.  That material was used to write a Draft Scoping Plan that was released for public comment at the end of 2021. The Climate Action Council states that it will revise the Draft Scoping Plan based on comments and other expert input in 2022 with the goal to finalize the Scoping Plan by the end of the year.

New York Energy and Climate Advocates

 New York Energy & Climate Advocates (NYECA) is a non-profit, volunteer-based organization of scientists, engineers, environmentalists, business professionals, and advocates for social justice who understand the reality of climate change and the moral imperative for timely action employing effective solutions that work in the real world.  Keith Schue, Technical Advisor, MS Electrical Engineering, and Leonard Rodberg, PhD Professor Emeritus of Urban Studies Queens College/CUNY, Co-Director Community Studies of New York, Inc. submitted an impressive set of comments. 

The comments are organized into six sections:

  1. An unrealistic approach to a very real problem,
  2. System-level realities of grid decarbonization,
  3. Errors and oversights,
  4. Consequences of failure,
  5. Designing a decarbonization plan that works , and
  6. Recommendations

The cover letter summarizes the comments:

We acknowledge the substantial effort which has gone into adoption of the Climate Leadership and Community Protection Act (CLCPA), analysis that has been performed by NYSERDA, and numerous meetings that have been convened by the Climate Action Council and various working groups. We are also grateful for the public hearing process which has allowed interested parties to provide comment. However, our organization is deeply concerned that the scoping plan drafted by the Council will not meet the CLCPA’s aggressive goals. As we will demonstrate, the unrealistic and technically flawed plan which has been proposed sets New York up for failure with respect to its decarbonization objectives, ultimately perpetuating the state’s reliance on fossil fuels. In doing so, it also threatens to prolong the exposure of environmental justice communities to pollution, unduly burden ratepayers, and hurt the state economically.

Respectfully, our concern stems from the fact that NYSERDA and the Climate Action Council have cast aside important “tools in the toolbox”, thereby turning a difficult task into one that, from a practical standpoint, becomes impossible. No form of energy is without impact and the technical potential of some carbon-free sources are limited. However, addressing the climate crisis requires an unbiased, science-based review of all viable technologies without prejudice. The draft plan fails to do this.

As we discuss, by downplaying the value of New York’s reliable fleet of nuclear plants and ignoring the potential of expanding nuclear power in state (and to a lesser degree hydro), the draft is left contemplating implausible scenarios—constructs which rely on unrealistic amounts of intermittent generation, massive battery storage, and an unbelievable network of hydrogen-based firm backup capacity, comparable to the total capacity of fossil fuel plants in the state today. Further, by relying on substantial amounts of imported electricity, a dubious exchange of energy with other regions to meet real-time demand, and copious amounts of materials produced elsewhere in the world, the draft plan undermines claims that its proposed approach serves as a model of sustainability for the nation or world. Perhaps most concerning is that the draft scoping plan turns a blind eye to clear warnings of how the strategy it has put forth—as seen in both California and Germany—falls apart in practice, and the danger which that failure poses to New York’s environment, its economy, and energy security.

To be clear, we support the state’s goal of carbon-free electricity by 2040. We also believe that it is achievable—but not with the plan which has been proposed.

This article summarizes the sections of NYECA’s comments.  The overall theme is that making nuclear power a significant contributor to New York’s total electricity portfolio will be the only credible way forward for decarbonization.  The summaries are brief and I recommend checking out the document itself because the presentation was outstanding. 

An unrealistic approach to a very real problem

The comments focus on the electric sector because “the burning of fossil fuels for electricity is a major contributor to greenhouse gas emissions, and because—as the Council and NYSERDA admit—successful decarbonization will require the beneficial electrification of other sectors, which in turn requires generating even more electricity.”  This section describes the challenge by showing where the current electrical energy comes from and how much is needed.  In the future the load is going to grow and all the energy generated using fossil fuels (around 40%) will have to be replaced by zero-emissions generating resources.

I liked the way the Draft Scoping Plan approach was described.  They presented the following figure that shows the proposed deployment of generating resources.

NYSERDA Scenario 3 Electricity Generation Capacity (MW)

The comments explain:

As seen above, NYSERDA’s plan relies upon a very rapid and dramatic expansion of generation capacity and storage. Whereas NYSERDA predicts a doubling of demand between 2020 and 2050, the amount of carbon-free capacity to meet that demand—which translates into physical equipment that must be built and deployed—would need to increase nearly nine-fold. The fundamental reason for this is because the Climate Action Council’s draft plan relies overwhelmingly on underperforming resources with low capacity factors. The DC capacity factor of photovoltaic solar panels within upstate New York is only about 14%-16%. Likewise, onshore wind in the state has an average capacity of only 26% based on NYISO data.

Then this section describes the issues associated with the wind and solar resources projections:

NYSERDA’s assumptions about capacity factor and other flaws in the plan are discussed in the next section of these comments. However, even if one ignores those issues, at face value the agency’s own figures reveal that the scale and pace of deployment for solar, wind, and other necessary support infrastructure being contemplated defies reality, exceeding rates anywhere on the globe. Neither NYSERDA nor DEC attempt to quantify the physical impacts of such an endeavor, including the amount of land conversion involved, material requirements, transmission, or the logistics of supply chains and construction. Nevertheless, as discussed below, NYSERDA’s estimates of required capacity are sufficient to gauge whether the proposed plan passes the straight-face test. It does not.

I could not agree more.  The rest of this section provides examples of the proposed deployment resources that are worth a look.  It concludes: ”By relying overwhelmingly on low-capacity-factor intermittent sources, which in turn require massive amounts of storage, backup generation, and transmission, the proposed plan not only invites failure, but also puts New York’s economy and ratepayers at risk while maximizing harm to the environment.”

System-level realities of grid decarbonization

This section emphasizes the importance of having dispatchable resources available to keep the lights on.  I have found it hard to make this complex concept user-friendly and I think the authors did a good job on it. 

The section defines the required resource as ““Firm” generation, meaning baseload or dispatchable generation capable of delivering electricity whenever needed, is a primary component of every electric grid on Earth, whether it has a high-carbon, low-carbon, or zero-carbon content.”  It goes on to show that the places that have successfully decarbonized have done so using nuclear power or hydropower, both sources of “firm” generation.

The comments then explain that grid instability is an issue with intermittent resources.  As the penetration of these resources increases an entire additional layer of facilities and infrastructure to make, store, and transport energy is needed.  This is the dispatchable, emissions-free resource (DEFR).  The case is persuasively made that nuclear energy reduces costs for deep decarbonization programs. 

The comments then use the findings of the New York Independent System Operator (NYISO) Phase II Climate Change Impact and Resilience Study to highlight issues with the Draft Scoping Plan.  My comments made the same point that “It is concerning that NYSERDA’s analysis differs so much from that of NYISO, the entity charged with maintaining the state’s electric grid. We believe NYSERDA must reconcile its work with NYISO’s Phase II report and provide a substantive explanation of differences to the Climate Action Council and public.”  This section explains that “NYISO leaves no doubt about the difficulties created by relying so heavily upon intermittent sources” using three examples.

Errors and oversights

This section described six issues that describe specific errors, oversights, and omissions which prevent it from serving as dependable framework for the ultimate scoping plan. I hope that the Climate Action Council reads this section because it describes the problems well and they are issues that should be addressed in the revisions for the Final Scoping Plan.  I believe that these issues are important and if the Council blows them off that it will prove that the public stakeholder process is no more than a token process to create the appearance of accepting public input pursuant to the Climate Act  instead of an earnest attempt to incorporate public stakeholder recommendations.

The six issues described are:

  1. Dubious use of imports/exports
  2. Unrealistic capacity factors
  3. Necessary replacement of renewable infrastructure
  4. Transmission
  5. Curtailment
  6. Inefficient backup generation

The first three all affect the projections of the resources needed.  Imports are used as a resource that fills in where needed but the comments explain the weaknesses in their assumptions.  The capacity factor is a measure of the availability of a generating resource and the Draft Scoping Plan assumes unrealistically high values.  It is assumed that no renewable infrastructure constructed before 2050 needs to be replaced, but that is unrealistic.  The end result from these issues is that the Draft Scoping Plan underestimates the resources needed and thus the costs.  The comments also point out that wind turbines and solar panels are more susceptible to extreme weather than nuclear power plants so there is a huge risk incurred by depending predominantly upon them.

The comments note that “Other than stating frequently that transmission improvements are needed, the draft scoping plan provides no substantive discussion of how much or what kind of new transmission infrastructure must be built”.  The comments go on to note that the documentation for the Draft Scoping Plan “does not address major transmission upgrades and new corridor projects that will be necessary between zones, including long-range transmission to bring electricity downstate from upstate wind and solar projects, or into the state from outside New York”.

The particular curtailment problem described in these comments refers to periods of time when the output from wind and solar resources are greater than the power needed on the grid and has to be cut back to reduce stress on the grid.  The comments explain that the NYISO has determined that in order reduce wasting this power more transmission has to be built.  The Draft Scoping Plan “essentially ignores the problem and broadly assumes that all ‘excess’ electricity from renewables can be directed to the operation of electrolyzers for hydrogen production.”  The problem is that they just assume that can be done and don’t prove it is feasible. 

The final issue raised is inefficient backup generation.  The comments note:

An issue often overlooked by energy models is the extent to which the inefficient “partnering” of intermittent sources with dispatchable generation affects emissions in a dynamic system. One cannot simply subtract new renewable generation on a watt-hour basis from prior fossil-fuel generation and assume that carbon-emissions decline proportionally.

The comments explain that relying on intermittent renewables may require partnering with simply-cycle generators that respond rapidly but are less efficient than combined-cycle plants, or running gas plants in “hot-standby”. In the real world, these techniques can erode the carbon-reducing benefits of having renewables in a system.

Consequences of failure

The main point of this section is that there is plenty of evidence that “demonstrate that decarbonization plans which are over reliant on intermittent generation are least reliable, least affordable, and most likely to fail.”  In my comments I made the point that there is specific language in the Climate Act that requires the Council to consider what is happening at other jurisdictions.  This section shows that in California and Germany where renewables have been promoted at the same time nuclear power is being phased out higher costs and lower reliability have resulted. 

The comments go on to show that we are already seeing similar issues subsequent to the retirement of 2,100 MW of zero-emissions at Indian Point over the last several years.  The following figure shows how the energy produced at Indian Point was mostly replaced with fossil fuels and net imports.  The claim that renewable energy and efficiency has made up for the retirement is false.

New York Electricity Generation including Behind-the Meter Solar (TWh)

May 2019 – April 2020 / May 2020 – April 2021 / May 2021 – April 2022

The comments go on to show that emission rates have increased commiserate with the use of more fossil fuels.  In addition, costs have gone up too.  The conclusion to this section sums it up:

The inconvenient truth is that in the three years since adoption of the CLCPA, New York took an enormous step backwards on fighting climate change and environmental justice. We can expect the same to occur if the licenses of New York’s upstate nuclear plants are not renewed. New York should learn from past mistakes, not repeat them.

Designing a decarbonization plan that works

I agree with these comments that argue that the Draft Scoping Plan as proposed cannot realistically succeed.  The NYECA plan emphasizes proven technology so it has a much better chance of success.

The following quote is a good summary:

Solar and wind pose two fundamental problems: (1) low energy density, which affects the sheer volume of materials, land, and infrastructure required to produce electricity; and (2) intermittency, which interferes with the delivery of energy when it is actually needed, making the integration of such sources into the grid increasingly difficult as more are deployed. The greatest mistake that New York can make is to underestimate the difficulty that these two factors present. An effective solution will be one that avoids them.

This section points out that “rather than assembling a multitude of intermittent low-capacity-factor generators plus massive battery storage in an effort to provide most of this aggregate continuous energy, a far more efficient use of generating capacity would be to incorporate a much smaller set of firm generators with high-capacity-factor that are capable of running continuously, or nearly so.”  They go on to point out that nuclear and hydropower work well for this purpose. 

Instead of relying on firm generation as merely “backup” to intermittent wind and solar, NYECA proposes making advanced nuclear power (in addition to existing nuclear and hydropower) the backbone of a reliable carbon-free electric grid. Wind, solar, and storage would also be part of their strategy, although at more modest, realistically achievable levels.

Their approach has two big advantages over the Draft Scoping Plan:

  • “It avoids an excessive, unrealistic, and unwelcomed buildout of solar and wind, massive battery plants and imposing new transmission infrastructure—thereby saving farmland and nature”.
  • “It avoids a tremendous amount of additional dispatchable zero-emission capacity for “backup” generation.”

The remainder of the section fleshes out details of their decarbonization strategy, including an example of how the total amount installed capacity in the future could be significantly reduced by deploying advanced nuclear power starting in the 2030’s instead of industrial-scale solar. Further information about issues associated with trying to use hydrogen, biogas and carbon sequestration are included. Finally, there is a very nice summary of the current state of nuclear technology options available, life-cycle impacts of nuclear compared to other generating technologies, and safety and human health.  I think it is a very persuasive argument that not only should existing nuclear be included in the Final Scoping Plan but that it should also include new nuclear.

Recommendations

There are six recommendations in these comments.  I will briefly summarize them below but strongly recommend reading the comments themselves.

  1. “Remove prejudicial bias against zero-carbon solutions” explains why it is important to eliminate the bias against nuclear power that is present in the Draft Scoping Plan.
  2. “Consider Alternative Scenarios with greater role for firm carbon-free generation, including the comprehensive analysis of impacts” makes the point that when all the impacts and costs are considered that nuclear deserves a bigger role in the Final Scoping Plan.
  3. “Provide explicit support for sustaining existing firm carbon-free resources, including nuclear power” is a direct response to the irrational demands of some members of the Council to shut down existing nuclear.
  4. “Invest in new technology, including nuclear power” suggests that given the promise of new technology, including nuclear that additional funding is entirely appropriate.
  5. “Establish an effective structure for climate action” recommends that adjustments to the membership of the Council be made because of parochial biases of some of its members preclude a fair treatment of these recommendations. The comments also recommend improvements to the process moving forward
  6. Evaluation of Environmental Impacts and Mitigation recommends a better assessment of cumulative environmental impacts and specific mitigation measures to limit the sprawl of wind and solar projects.

Pragmatic Comment

One of the advantages of these comments is that they are consistent with the zero-emissions mandate of the Climate Act.  I personally don’t think that getting to “zero” emissions is a good thing because it adds so much cost, complexity, and risk that the disadvantages outweigh the advantages. 

In order to be consistent with the Climate Act insistence on “zero” emissions these comments preclude the use of natural gas.  I started working for the Niagara Mohawk Power Corporation in 1981 and I found a spreadsheet that lists the 1984 emissions for the four generating plants at Dunkirk, Buffalo, Oswego, and Albany.  In that year the totals from those four plants were: sulfur dioxide emissions totaled 136,684 tons at a rate of 2.0 lb per mmBtu, nitrogen oxide emissions totaled 37,221 tons at a rate of 0.56 lb per mmBtu and carbon dioxide emissions totaled 12,530,220 tons at a rate of 187 lb per mmBtu.  In 2021 the statewide total emissions were sulfur dioxide emissions totaled 1,570 tons at a rate of 0.01 lb per mmBtu, nitrogen oxide emissions totaled 8,718 tons at a rate of 0.04 lb per mmBtu and carbon dioxide emissions totaled 28,550,157 tons at a rate of 118 lb per mmBtu.  Those reductions occurred because coal and residual oil generation has been replaced by natural gas generation.  I submit that those reductions are close enough to zero that all the wind, solar, energy storage, and zero-emissions dispatchable resource infrastructure necessary to go to zero are unwarranted. 

If it were up to me, the pragmatic future energy system would go all in for natural gas with one important restriction.  Natural gas has so many unique and useful characteristics that make it so valuable that using it for baseload electricity production is inappropriate.  Thankfully there are two proven technologies that have zero emissions that can be used for that purpose.  Of course, I am talking about nuclear and hydro.  I should also point out that until such time that someone can show me the health impacts associated with the observed reductions in emissions and ambient air quality that occurred over my career are proportional to the projected impacts used to demonize natural gas, then I remain unconvinced that eliminating natural gas use is warranted.

Conclusion

NYECA comments make a convincing case that the proposed plans have serious issues.  They explain why a system that relies on wind, solar, and energy storage and excludes nuclear as a major component hasn’t worked elsewhere and won’t work here.  Fatal flaws in the Draft Scoping Plan recommendations and documentation are described.  However, they do present an alternative consistent with the Climate Act targets that addresses many of those problems using proven technology.  The NYECA comments conclude: “If New York’s Climate Action Council is serious about decarbonizing the electricity sector in the next seventeen years, it will embrace “firm” carbon-free power, not just as “backup” to a bloated buildout of underperforming intermittent generators, but as a significant contributor of energy to the state’s electric portfolio.”  I agree completely with that conclusion.

Author rogercaiazzaPosted on July 9, 2022February 19, 2023Categories Climate Act Comments Submitted2 Comments on Climate Act Comments by New York Energy and Climate Advocates

Draft Scoping Plan Electric System Comments

The Climate Leadership and Community Protection Act (Climate Act) has a legal mandate for New York State greenhouse gas emissions to meet the ambitious net-zero goal by 2050.  In response to the request for comments on the Draft Scoping Plan I submitted 26 comments on specific issues primarily related to subjects raised at this blog before the end of the comment period on July 1.  This article sums up the comments I submitted related to the electric system.

Everyone wants to do right by the environment to the extent that they can afford to and not be unduly burdened by the effects of environmental policies.  I have written extensively on implementation of New York’s response to that risk because I believe the ambitions for a zero-emissions economy embodied in the Climate Act outstrip available renewable technology such that it will adversely affect reliability, impact affordability, risk safety, affect lifestyles, and will have worse impacts on the environment than the purported effects of climate change in New York.  New York’s Greenhouse Gas (GHG) emissions are less than one half one percent of global emissions and since 1990 global GHG emissions have increased by more than one half a percent per year.  Moreover, the reductions cannot measurably affect global warming when implemented.   This page documents all the comments that I submitted as part of the Climate Leadership and Community Protection Act implementation process. The opinions expressed in this post 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.

Climate Act Background

The Climate Act establishes a “Net Zero” target (85% reduction and 15% offset of emissions) by 2050. The Climate Action Council is responsible for preparing the Scoping Plan that will “achieve the State’s bold clean energy and climate agenda”.  They were assisted by Advisory Panels who developed and presented strategies to the meet the goals to the Council.  Those strategies were used to develop the integration analysis prepared by the New York State Energy Research and Development Authority (NYSERDA) and its consultants that quantified the impact of the strategies.  That material was used to write Draft Scoping Plan that was released for public comment at the end of 2021. The Climate Action Council will revise the Draft Scoping Plan based on comments and other expert input in 2022 with the goal to finalize the Scoping Plan by the end of the year.

My electric system  comments addressed a few Draft Scoping Plan electric system issues. This is one of the topics that I did not address all the things that I thought needed to be raised.  I just ran out of time.

I believe that the ultimate problem is that the Climate Act presumed that converting the electric grid from its current reliance on fossil fuels to provide reliable electricity when needed most was just a matter of political will.  However, the New York Independent System Operator (NYISO) Power Trends 2022 report notes: “Long-duration, dispatchable, and emission-free resources will be necessary to maintain reliability and meet the objectives of the CLCPA. Resources with this combination of attributes are not commercially available at this time but will be critical to future grid reliability.”   The Draft Scoping Plan projects that the long-duration, dispatchable, and emission-free resource capacity requirement is about the same as the current fossil-fired generating capacity.  This is an enormous challenge and the cavalier way it is addressed in the Draft does not inspire confidence that the Integration Analysis electric system projections are viable.

Capacity Costs

I estimated the costs for the projected generating capacity described in the Draft Scoping Plan Integration Analysis.  I used the following sources of data to calculate the capital costs for the generating capacity (MW) additions projected in the Draft Scoping Plan.  The Integration Analysis lists projected installed capacity values for 2020 and for the Reference Case and Scenarios 1-4 for 2040 in the IA-Tech-Supplement-Annex-2-Key-Drivers-Outputs spreadsheet.  My primary source for cost information was U.S. Energy Information Administration (EIA)  Cost and Performance Characteristics of New Generating Technologies, Annual Energy Outlook 2022.   EIA does not provide costs for hydrogen electrolyzers so I used data in the “Hydrogen” tab in the IA-Tech-Supplement-Annex-1-Input-Assumptions spreadsheet for electrolyzers, infrastructure, and transportation.  The input data, calculations and results are included in the attached Caiazza Electric System Comment Spreadsheet

Although my estimate of the overnight cost to develop the resources needed to transition to a zero-emissions electric system in 2040 are generally consistent with the Appendix G Figure 48 net present value of system expenditures, there are differences.  I estimate that the Reference Case capital costs are only $82.5 billion and that the mitigation scenarios range from $220 billion to $400 billion. That difference is undoubtedly due to what resources are in the Draft Scoping Plan Reference Case that I excluded because they are not business-as-usual. 

I compared the capital costs (2020 $/kW) in the IA-Tech-Supplement-Annex-1-Input-Assumptions spreadsheet Resource Costs tabs against the EIA Table 1: Cost of new central station electricity generating technologies.  Table A-3 in Addendum 1 shows that with the exception of the capital costs for large hydro and a gas-fired combined cycle unit in Upstate New York all the other technology costs are lower and, in some cases, much lower in the Integration Analysis.  Table 1 lists the percentage difference between Integration Analysis (IA) and comparable Energy Information Administration (EIA) estimates for New York City and Long Island (NYCW) and Upstate New York (NYUP).  If my comparison interpretation is correct then these differences are outrageous.  The capital costs for offshore wind are half of the EIA costs.  While there may be some interpretation of the battery energy storage cost that can explain why EIA costs are five times higher, I don’t think there is any interpretation issue with the hydrogen fuel cell technology that is five times higher in New York City and four times higher Upstate.  The Climate Action Council must explain why the Draft Scoping Plan numbers are so high for these technologies.

Table 1: Percentage Difference Between Integrated Analysis Base Capital Costs and EIA  Cost and Performance Characteristics of New Generating Technologies, Annual Energy Outlook 2022 Costs

The Draft Scoping Plan does not provide sufficient documentation to reconcile all the differences.  My estimates only include the capital costs for the projected generating resources and do not include transmission ancillary services that must be included for a true estimate of the total costs to go to zero-emissions generation.  In order to fully predict the costs of the Scoping Plan, the Climate Action Council should insist that the authors of the Integration Analysis provide more detailed explanations.

Reference Case Misdirection

The Integration Analysis that provides the numbers used in the Draft Scoping Plan misleads readers with its definition of the Reference Case.  Policy modeling like this compares projections for future mitigation scenarios against a business-as-usual case future projection.   The definition used in the Integration Analysis “includes a business-as-usual forecast plus implemented policies”.  The Climate Act mandates “9 gigawatts (GW) of offshore wind electric generation by 2035”.  I believe it is unacceptable to include those resources in the Reference Case. In my benefits are greater than costs comment I showed that the after correcting for other improperly categorized sectors from this mis-leading approach projects net-zero transition costs are between $295 billion and $316 greater than the benefits but the cost numbers in these comments show that the costs are increased to between $363 and $372 greater than the benefits.  The Climate Action Council should insist that the Final Scoping Plan describe all the control measures, provide the assumptions used for the strategies, the expected costs and expected emission reduction for each measure for the Reference Case, the Advisory Panel scenario and the three mitigation scenarios.  Then the public would be able to decide for themselves which costs associated with “already implemented” programs are appropriate. 

Retirement Sleight of Hand 

In a different comment I showed that the Integration Analysis incorrectly assumed that no wind, solar, and energy storage projects would reach their end of useful life and thus not have to be replaced between before 2050. In this comment I quantified costs associated with that approach.  I showed that in 2040 incorporating retirements would increase costs by at least 6%.  However, costs jump considerably when costs to 2050 are considered.  For example, my projected cost for Scenario 4 in 2040 is $399,530 million but the cost to replace all the equipment that ages out between 2020 and 2050 is $304,428 million.  I also showed that the biomass and wind capacity factors are biased high.  The observed statewide average wind capacity is trending down since 2015 and that effect is not addressed in the Draft Scoping Plan.  The Climate Action Council should ensure that the Final Scoping Plan addresses these issues

Conclusion

The ultimate goal of the Scoping Plan is to inform the Energy Plan that is supposed to outline how New York state policy will guide future energy use.  Unfortunately, the Scoping Plan is just a list of policies that are projected to reduce emissions consistent with the Climate Act mandates.  There is no proof-of-concept feasibility analysis that shows how those policies will work together to provide reliable electricity to power the energy needs of the state.  The costs are hidden in a black box that only provides limited information. 

It will be fascinating to see how the Council responds to the requests for more information.  I hope that the Council will insist that the final iteration of the Integration Analysis will be compatible with the projections and analysis performed by the NYISO and others.  Failure to do so will not end well.

Author rogercaiazzaPosted on July 7, 2022February 19, 2023Categories Climate Act, Climate Act Comments Submitted, Climate Act Scoping PlanLeave a comment on Draft Scoping Plan Electric System Comments

Overview of My Comments on the Draft Scoping Plan Comment

The Climate Leadership and Community Protection Act (Climate Act) has a legal mandate for New York State greenhouse gas emissions to meet the ambitious net-zero goal by 2050.  In response to the request for comments on the Draft Scoping Plan I submitted 26 comments on specific issues primarily related to subjects raised at this blog before the end of the comment period on July 1.  This article sums up the comments I submitted as described in my executive summary comment.

Everyone wants to do right by the environment to the extent that they can afford to and not be unduly burdened by the effects of environmental policies.  I have written extensively on implementation of New York’s response to that risk because I believe the ambitions for a zero-emissions economy embodied in the Climate Act outstrip available renewable technology such that it will adversely affect reliability, impact affordability, risk safety, affect lifestyles, and will have worse impacts on the environment than the purported effects of climate change in New York.  New York’s Greenhouse Gas (GHG) emissions are less than one half one percent of global emissions and since 1990 global GHG emissions have increased by more than one half a percent per year.  Moreover, the reductions cannot measurably affect global warming when implemented.   This page documents all the comments that I submitted as part of the Climate Leadership and Community Protection Act implementation process. The opinions expressed in this post 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.

Climate Act Background

The Climate Act establishes a “Net Zero” target (85% reduction and 15% offset of emissions) by 2050. The Climate Action Council is responsible for preparing the Scoping Plan that will “achieve the State’s bold clean energy and climate agenda”.  They were assisted by Advisory Panels who developed and presented strategies to the meet the goals to the Council.  Those strategies were used to develop the integration analysis prepared by the New York State Energy Research and Development Authority (NYSERDA) and its consultants that quantified the impact of the strategies.  That material was used to write Draft Scoping Plan that was released for public comment at the end of 2021. The Climate Action Council will revise the Draft Scoping Plan based on comments and other expert input in 2022 with the goal to finalize the Scoping Plan by the end of the year.

I have been following the Climate Leadership and Community Protection Act (Climate Act) process since it started.  I used information published on my blog to submit 26 comments on various aspects of the Draft Scoping Plan since the comment period opened.  This post summarizes the executive summary comment I submitted that highlights the most important points that I think the members of the Climate Action Council should know about the Draft Plan.  Given the breadth and scope of the Climate Act transition and the Draft Scoping Plan it is unreasonable to expect that any Council member could devote enough time to evaluating it to understand the substantive nuances that have not been forthcoming from the authors of the Integration Analysis or the leadership of the Climate Action Council.

Summary of Key Recommendations

I believe that the Climate Action Council has lost sight of its primary objective to inform the next Energy Plan in the context of its Climate Act mandates as specified in § 75-0103.  Instead of focusing on specific technical issues, the Council should be considering how to address those mandates in their review of the Draft Scoping Plan that will inform the state energy plan. 

The Council should be defining criteria for safe and adequate electric service, impairing existing obligations, and increase in arrears or service disconnections for Climate Act implementation.  I recommend that those conditions be established up front, implementation plans should be evaluated against those criteria, implementation only proceed if the conditions are met, and then tracked during implementation to see if they are being maintained.  I think the safe and adequate electric service requirement means that the most important thing that has to be done before the Scoping Plan is finalized is to reconcile the NYISO projections for future resource capacity with the Integration Analysis projections. 

The final Climate Action Council mandate that needs to be considered is section 16 of § 75-0103 where there is a requirement to consider efforts at other jurisdictions.  Every jurisdiction that has attempted to transition their energy system away from fossil fuels to wind and solar has seen significant price increases that significantly affected affordability.  As a first step, I recommended that the Climate Action Council establish criteria for affordability.  My comments point out that there have been recent issues at other jurisdictions that affect both reliability and affordability that should be considered by the Council.

The Climate Act specifies that the costs and benefit have to be publicly available.  There is no breakdown of costs within sectors that is needed to evaluate the validity of Integration Analysis cost estimates. I recommended that the Council address this mandate by defining what will meet this requirement. I think that the Final Scoping Plan must describe all control measures, assumptions used, the expected costs for those measures and the expected emission reductions for the Reference Case, the Advisory Panel scenario and the three mitigation scenarios. 

I believe that the Climate Action Council should develop criteria for schedule implementation. The Scoping Plan should establish the milestones and conditions that have to be met before any existing technology is dismantled.  The Integration Analysis and the Draft Scoping Plan zero-emissions electric grid transition plan depend on a long-duration, dispatchable, and emission-free resource that does not exist.  Another comment explains why there are reasons to believe that a commercially viable and affordable resource like this may never be developed.  I conclude that the Final Scoping Plan must include a conditional implementation schedule based on the availability of this resource.

In order to plan adequately for the amount of backup resources needed the worst-case intensity, duration, and frequency of occurrence for winter-time wind lulls has to be determined.  I believe that the best way to do that is to use the longest period of historical data as possible and it has not been used as far as I can tell.  My comment made specific recommendations for this analysis.

The reality is that the benefits are imaginary but the costs are real and the Integration Analysis that provides the basis of the Draft Scoping Plan consistently over-states benefits and under-estimates the costs such that the claim that the benefits are greater than the costs is incorrect.

The Climate Action Council should address the feasibility of the Integration Analysis control measures as part of the Final Scoping Plan.  Nuclear power is the only scalable dispatchable emissions-free generating resource that has been proven to work so the Final Scoping Plan should include a Scenario that takes advantage of those capabilities. 

Carbon pricing is a great theory but in practice there are practical considerations that make it a poor choice for funding decarbonization efforts.  I explained why I believe carbon pricing will always be a regressive tax and list a number of practical reasons that carbon pricing will not work as theorized.  I recommend that this proposal be dropped.

Based on my evaluation of electric vehicles and other strategies, the final Scoping Plan has to a feasibility analysis for all the control measures showing how this could possibly work.  It is not enough to simply say they will work.

One of my biggest concerns about the massive transition to diffuse wind and solar generating resources is the cumulative effect on agriculture and the environment.  The Final Scoping Plan must include proposed thresholds for unacceptable cumulative environmental impacts based on an analysis of all the impacts of the resources projected in the Draft Scoping Plan.   

The following sections provide link to each comment submitted with a brief description.

Goal of Scoping Plan and Council Mandates

I believe that the Climate Action Council has lost sight of its primary objective to inform the next Energy Plan in the context of its Climate Act mandates. In § 75-0103. New York State Climate Action Council (11) the goal of the scoping plan is spelled out:

The council shall on or before two years of the effective date of this article, prepare and approve a scoping plan outlining the recommendations for attaining the statewide greenhouse gas emissions limits in accordance with the schedule established in section 75-0107 of this article, and for the reduction of emissions beyond eighty-five percent, net zero emissions in all sectors of the economy, which shall inform the state energy planning board’s adoption of a state energy plan in accordance with section 6-104 of the energy law. The first state energy plan issued subsequent to completion of the scoping plan required by this section shall incorporate the recommendations of the council.

I submitted comments that explained that there are specific Climate Act mandates are related to expertise, an implementation safety valve, costs and benefits documentation, and consideration of the experiences of other jurisdictions.  Instead of focusing on specific technical issues, the Council should be considering how to address those mandates in their review of the Draft Scoping Plan that will inform the state energy plan. 

My primary concern is reliability. In that context expertise is an issue. Section 2 of § 75-0103 notes that “at large members shall include at all times individuals with expertise in issues relating to climate change mitigation and/or adaptation, such as environmental justice, labor, public health and regulated industries.”  It is extremely telling that energy sector expertise is not mentioned as a specific criterion, unless you assume that regulated industries refer to the energy utilities.  At the May 26, 2022 Climate Action Council meeting some members of the Council stated that concerns about reliability with a 100% renewable grid were mis-information.  This directly contradicts the experts who authored the New York Independent System Operator (NYISO) Power Trends 2022 report that notes: “Long-duration, dispatchable, and emission-free resources will be necessary to maintain reliability and meet the objectives of the CLCPA. Resources with this combination of attributes are not commercially available at this time but will be critical to future grid reliability.” 

There are members of the Climate Action Council who believe that the energy transition must proceed no matter what because the law says so.  However, New York Public Service Law  § 66-p. “Establishment of a renewable energy program” includes a safety valve condition:  “(4) 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”.  I believe that instead of getting bogged down in details of specific technologies, the Council should be defining criteria for safe and adequate electric service, impairing existing obligations, and increase in arrears or service disconnections for Climate Act implementation.  I recommend that those conditions be established up front, implementation plans should be evaluated against those criteria, implementation only proceed if the conditions are met, and then tracked during implementation to see if they are being maintained.

I think New York Public Service Law  § 66-p. is a clear mandate to address reliability.  Therefore, the most important thing that has to be done before the Scoping Plan is finalized is to reconcile the NYISO projections for future resource capacity with the Integration Analysis projections.  It is also critical that the Final Scoping Plan include reliability provisions acceptable to the NYISO and New York State Reliability Council are established that meet the safety valve provisions in § 66-p.

My background as a meteorologist led me to comment on the analyses done to date for the worst-case renewable resource availability because I believe address this is a critical reliability issue.  No electric grid proposal that relies primarily on wind and solar resources can plan adequately for the amount of backup resources unless the worst-case intensity, duration, and frequency of occurrence for winter-time wind lulls is known.  I believe that the best way to do that is to use the longest period of historical data as possible and it has not been used as far as I can tell.  My comment made specific recommendations for this analysis.

I am also very concerned about affordability.  Every jurisdiction that has attempted to transition their energy system away from fossil fuels to wind and solar has seen significant price increases that significantly impact those who can afford them the least.  As a first step, I recommend that the Climate Action Council establish criteria for affordability. 

There is a related affordability Council mandate. In section 14,b of § 75-0103 the Climate Act specifically states that the costs and benefits analysis must:

“Evaluate, using the best available economic models, emission estimation techniques and other scientific methods, the total potential costs and potential economic and non-economic benefits of the plan for reducing greenhouse gases, and make such evaluation publicly available.” 

This information is not currently available.  There is no breakdown of costs within sectors that is needed to evaluate the validity of Integration Analysis cost estimates. I recommend that the Council address this mandate by defining what will meet this requirement. In my opinion in order to fulfill this obligation, the Final Scoping Plan must describe all control measures, assumptions used, the expected costs for those measures and the expected emission reductions for the Reference Case, the Advisory Panel scenario and the three mitigation scenarios. 

Additional information was made available in May describing the cost methodologies.  I found this additional documentation describes the calculation methodology but little else.  I note that electrification of home heating is dependent upon building shell improvements.  This recently provided documentation does not provide sufficient information to understand how typical homeowners will be affected by that control measure.  Providing net system costs relative to the Reference Case is not sufficient because stakeholders don’t know the total costs.

The final Climate Action Council mandate is section 16 of § 75-0103 where there is a requirement to consider efforts at other jurisdictions: “The council shall identify existing climate change mitigation and adaptation efforts at the federal, state, and local levels and may make recommendations regarding how such policies may improve the state’s efforts.”  There has been very little discussion of efforts at other jurisdictions.  My comments point out that there have been recent issues at other jurisdictions that affect both reliability and affordability that should be considered by the Council.

I believe that the Climate Action Council should develop criteria for schedule implementation. A collective crossing of fingers that a new technology will maintain existing standards of reliability and affordability is inappropriate. I submitted a comment that explained that the Department of Environmental Conservation’s decision to disapprove two proven interim solutions eliminates reliability options when there is no other commercially proven option available.  The Scoping Plan should establish the milestones and conditions that have to be met before any existing technology is dismantled.  The Integration Analysis and the Draft Scoping Plan zero-emissions electric grid transition plan depend on a long-duration, dispatchable, and emission-free resource that does not exist.  Another comment explains why there are reasons to believe that a commercially viable and affordable resource like this may never be developed.  I conclude that the Final Scoping Plan must include a conditional implementation schedule based on the availability of this resource.

Costs and Benefits

Climate Action Council members and the public should be aware of the games played to be able to conclude that “The cost of inaction exceeds the cost of action by more than $90 billion”.   The reality is that the benefits are imaginary but the costs are real and the Integration Analysis that provides the basis of the Draft Scoping Plan consistently over-states benefits and under-estimates the costs (here, here, and here) . 

I did an extensive analysis of the claimed benefits.  The plan claims $235 billion societal benefits for avoided greenhouse gas emissions.  I estimate those benefits should be no more than $60 billion.  The Scoping Plan gets the higher benefit by counting benefits multiple times.  If I lost 10 pounds five years ago, I cannot say I lost 50 pounds but that is what the Draft Scoping Plan says.  Correcting that mis-characterization reduces the benefits below the costs. 

There are issues with the other benefit claims.  The Scoping Plan claims air quality improvement benefits range between $100 billion and $172 billion.  These benefits are due to an air quality improvement for PM2.5 of 0.35 µg/m3 that is supposed to “avoid tens of thousands of premature deaths, thousands of non-fatal heart attacks, thousands of other hospitalizations, thousands of asthma-related emergency room visits, and hundreds of thousands of lost workdays”. However, the modeled impacts rely on a linear no-threshold model.  The observed PM2.5 reduction in New York City since 2005-2007 is 5.6 µg/m3 and that is 16 times higher than the projected decrease due to the Climate Act.  Using the linear no-threshold model that means that we should be able to observe sixteen times tens of thousands of premature deaths, sixteen times thousands of non-fatal heart attacks, sixteen times thousands of other hospitalizations, sixteen times thousands of asthma-related emergency room visits, and sixteen times hundreds of thousands of lost workdays.  When the Climate Action Council and Final Scoping Plan verifies that these reductions have been observed I will accept these benefits.  Benefits are also claimed for active transportation but the Final Scoping Plan benefits should be revised to take into account the number of places where this might work. The majority of the health benefits from energy efficiency interventions in Low and Middle Income (LMI) homes are the result of “non-energy interventions” and should not be included in the Final Scoping Plan that covers energy interventions

The key point regarding the Draft Scoping Plan benefit/cost claim is that there is a caveat that the comparison is relative to the Reference Case.  It is very rarely mentioned but it makes all the difference.  Instead of using a business-as-usual case for comparing impacts, the Integration Analysis defines the Reference Case to include already “implemented” strategies.  That approach excludes legitimate Climate Act costs by mis-categorizing initiatives such as the 2035 zero-emission vehicle legislation and the 9 GW of off-shore wind mandate in the Climate Act as part of the business-as-usual Reference case. This raises the Reference Case costs relative to the mitigation scenarios so that the final costs are under-estimated.  If the costs to convert to zero-emissions vehicles and the off-shore wind are properly accounted for, the costs exceed the benefits by at least an order of magnitude.

Time limitations and lack of documentation prevented me from providing many specific comments on plans for the electric system.  I evaluated the capital costs for generating resources in the different scenarios and concluded that in order to fully verify the costs of the Scoping Plan, the Climate Action Council should insist that the authors of the Integration Analysis provide more detailed analyses.

I commented that the retirement assumptions for wind, solar, and energy storage need to be changed to reflect expected lifetimes of those technologies.  This mis-characterization reduces costs on the order of 40%.  A key technology for reliability is the dispatchable, emissions-free resource.  The place-holder for this resource is hydrogen in one form or other.  My concern is that the Plan does not provide enough reliable documentation to support the speculated use of hydrogen as the technology for this critical resource.  My comments describe specific issues that need to be explicitly addressed in the Final Scoping Plan if the Climate Action Council is to make a compelling argument that hydrogen technology will keep the lights and heat on when needed most. 

I compared the capital costs (2020 $/kW) in the IA-Tech-Supplement-Annex-1-Input-Assumptions spreadsheet Resource Costs tabs against the EIA Table 1: Cost of new central station electricity generating technologies.  I show that with the exception of the capital costs for large hydro and a gas-fired combined cycle unit in Upstate New York all the other technology costs are lower and, in some cases, much lower in the Integration Analysis.  If my comparison interpretation is correct then these numbers are outrageous.  The capital costs for offshore wind are half of the EIA costs.  While there may be some interpretation of the battery energy storage cost that can explain why EIA costs are five times higher, I don’t think there is any interpretation issue with the hydrogen fuel cell technology that is five times higher in New York City and four times higher Upstate.  The Climate Action Council must explain why the Draft Scoping Plan numbers are so high for these technologies.

Scenario Comments

There was a specific request for comments on the three mitigation scenarios.  There are significant technical issues that have to be addressed to maintain current standards of reliability and affordability.  There are technologies in all the sectors that are included in all the mitigation scenarios of the Draft Scoping Plan that are not commercially available at this time but will critical to the transition requirements.  As a result of these technical constraints, I believe that mitigation scenario 2, Strategic Use of Low-Carbon Fuels should be the recommended path forward for the Final Scoping Plan simply because it relies on fewer untested technologies.

My comments on the scenarios showed that the Integration Analysis documentation for the control strategies in the three mitigation scenarios is inadequate.  There isn’t sufficient information about each control measure to be able to compare emission reductions, costs, and viability to be able to meaningfully comment on the components of the mitigation scenarios.  More importantly, the Draft Scoping Plan does not include a feasibility analysis that explains how the control measures will work in the Climate Act transition plan.  The strategies are simply listed and the citizens of New York are expected to believe that the projected emissions reductions will occur.  The Climate Action Council should address the feasibility of the Integration Analysis control measures as part of the Final Scoping Plan.

Additional time for comments would have been needed for me to provide extensive scenario specifics for key sectors.  I did manage to spend a lot of time trying to figure out how electrification of residential heating was supposed to work and how the mitigation scenarios were different.  The primary difference for new heat pump sales for the scenarios is the ramp rate.  Scenarios 3 and 4 accelerate the deployment of heat pumps in 2030 by mandating early retirement of existing furnaces instead of waiting until their end of useful life.  It is easy to include this in a framework but there are at least a couple of implementation issues.  What criteria would be used to determine who would get stuck with the added expense for premature retirements?   Shouldn’t the affected owners get an additional subsidy to cover their costs?  Do those issues make this infeasible?  Without a feasibility analysis the Final Scoping Plan will be incomplete. The Climate Action Council needs to address these questions because this sector is a primary concern for homeowners.

My comments on the mitigation scenarios noted that Mark Mills made the point that “based on today’s physics and technology, the only path to an energy system with a material intensity lower than hydrocarbons would be one focused on nuclear fission.”  Given that nuclear power is also the only scalable dispatchable emissions-free generating resource that has been proven to work, the Final Scoping Plan should include a Scenario that takes advantage of those capabilities.  The Climate Action Council needs to address why this approach has not been considered.

Carbon Pricing

I also submitted a comment on the proposal for carbon pricing.  It is a great theory but in practice there are practical considerations that make it a poor choice for funding decarbonization efforts.  I explained why I believe carbon pricing will always be a regressive tax and list a number of practical reasons that carbon pricing will not work as theorized.  My comment also referenced an analysis in Canada that concluded: “There may be many reasons to recommend carbon pricing as climate policy, but if it is implemented without diligently abiding by the principles that make it work, it will not work as planned, and the harm to the Canadian economy could well outweigh the benefits created by reducing our country’s already negligible level of global CO2 emissions.”  Substitute New York for Canada and I believe this describes this policy option.  I recommend that this economy-wide proposal be abandoned. 

Transportation

I submitted a couple of comments on electric vehicles.  The emphasis in the first comment was my finding that the Integration Analysis is simply making assumptions about future zero-emissions transportation implementation strategies without providing adequate referenced documentation.  I provided numerous recommendations for additional documentation in these comments so that New Yorkers can understand what will be expected and how much it will cost.

As far as I can tell, the electric vehicle costs are based entirely on new vehicle sales. There is no acknowledgement that the used car market will likely change because of the cost of battery replacement.  Sellers will likely get less relative to new cars in the battery electric vehicle market.  Buyers may get a relative deal but will lose in the end when the batteries have to be replaced.  This is a particular concern for low and middle-income citizens who cannot afford new vehicles.

There is no bigger disconnect between the zero-emission vehicle (ZEV) proposed strategy and reality than the ZEV charging infrastructure requirements.  The biggest problem is that millions of cars will have to rely on chargers that cannot be dedicated for the owner’s personal use because the owners park on the street or in a parking lot.  In order to provide a credible ZEV strategy, the final Scoping Plan has to describe a plan how this could possibly work.  It is not enough to simply say it will work.

I also submitted a comment addressing electric vehicle costs.  the Integration Analysis vehicle cost projections rely on a single vehicle type for light-duty vehicles.  As a result the projections are not particularly useful for many vehicle owners.  The Climate Action Council should consider updating the Integration Analysis to better represent the types of vehicles used.

Impacts

One of my biggest concerns about the massive transition to diffuse wind and solar generating resources is the cumulative effect on agriculture and the environment.  I recommended that the Climate Action Council place a moratorium on the development of utility-scale solar projects until permitting requirements have been established for responsible solar siting and protection of prime farmlands.  The problem with cumulative environmental impacts.  The most recent environmental impact analysis only addressed a fraction of the total number of wind turbines and area covered by solar PV installations.  In addition, the environmental impacts of battery energy storage were not addressed.  It is impossible to project the impacts of the environmental impacts of the dispatchable emissions-free resource that it included in the capacity projections because a specific technology has not been specified.  My comments quantify the renewable energy resource difference between the most recent environment analysis and the Integration Analysis projections.

I recommended that the Department of Environmental Conservation propose thresholds for unacceptable environmental impacts.  I believe that without addressing this problem that it is likely that the environmental impacts from the massive wind and solar resource developments will have far worse impacts than those that can be ascribed to climate change.  For example, I project that at least 216 Bald Eagles could be killed every year when there are 9,445 MW of on-shore wind.  There were 426 occupied bald eagle nest sites in New York in 2017.  I am not a wildlife biologist but those numbers indicate to me that there will be major threats to the survivability of Bald Eagles in New York.  The Final Scoping Plan must include proposed thresholds for unacceptable environmental impacts like this.

I submitted comments that refuted many of the claims made in Section 2.1, Scientific Evidence of a Changing Climate, of the Draft Scoping Plan.  I argued that if documentation is not included that explicitly supports the claims made and contradicts my comments and the attachment, then I think those claims should be removed from the final Draft Scoping Plan.

I recommend that the Final Scoping Plan include a conditional schedule that considers the availability of necessary technology and potential impacts to reliability and affordability before implementing certain control measures.  I expect the response will be that because there is an “existential” threat due to climate change and we are seeing the effects of climate change now that we cannot wait to act.  I submitted comments that provide references by noted experts that explain why there isn’t a climate crisis and why the Draft Scoping Plan’s reliance on the Intergovernmental Panel on Climate Change summaries for policy makers is mis-placed.  I also explain that it is inappropriate to claim that every observed extreme weather event is evidence of climate change.  The risks of an unreliable and unaffordable electric system are far greater than the over-hyped risks of climate change in New York.

My final point for the Climate Action Council is that the Draft Scoping Plan does not quantify how New York’s net-zero transition will affect global warming.  My calculation shows that the expected impact on global warming would be an immeasurable 0.01°C by the year 2100.  If you cannot measure the change in temperature there is no way you can detect a change in the purported effects of that temperature change.  In addition, New York’s emissions are less than one half of one percent of global emissions and global emissions have been increasing by more than one half of one percent on average since 1990. Consequently, New York emission reductions will not have an appreciable effect on global warming.

Conclusion

I recommended that the Final Scoping Plan include an implementation schedule that is based on technological availability that maintains current standards of reliability affordability, and environmental protections.  I expect the emotional response will be that we cannot wait.  However, I submitted comments that explained that the claims of an imminent, inevitable climate catastrophe are ill-considered and it is inappropriate to claim that every observed extreme weather event is evidence of climate change.  The risks of an unreliable and unaffordable electric system are far greater than the over-hyped risks of climate change in New York.  Furthermore, because New York’s total emissions are less than one half of one percent of global emissions and total emissions have been increasing on average by more than one half of one percent per year anything New York does will get lost in the noise of global emissions changes.  A conditional schedule is the rational approach to address the many unresolved technological issues.

Author rogercaiazzaPosted on July 3, 2022February 18, 2023Categories Climate Act, Climate Act Comments Submitted, Climate Act Scoping Plan1 Comment on Overview of My Comments on the Draft Scoping Plan Comment

Draft Scoping Plan Transportation Incremental Benefits Associated with Scenario 4 Comment

The Climate Leadership and Community Protection Act (Climate Act) has a legal mandate for New York State greenhouse gas emissions to meet the ambitious net-zero goal by 2050.  This brief article describes a comment I submitted that was based on a post from last March.  The comment was trivial but raised some general issues relative to the way the Council is addressing comments.

Everyone wants to do right by the environment to the extent that they can afford to and not be unduly burdened by the effects of environmental policies.  I have written extensively on implementation of New York’s response to that risk because I believe the ambitions for a zero-emissions economy embodied in the Climate Act outstrip available renewable technology such that it will adversely affect reliability, impact affordability, risk safety, affect lifestyles, and will have worse impacts on the environment than the purported effects of climate change in New York.  New York’s Greenhouse Gas (GHG) emissions are less than one half one percent of global emissions and since 1990 global GHG emissions have increased by more than one half a percent per year.  Moreover, the reductions cannot measurably affect global warming when implemented.   This page documents all the comments that I submitted as part of the Climate Leadership and Community Protection Act implementation process. The opinions expressed in this post 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.

Climate Act Background

The Climate Act establishes a “Net Zero” target (85% reduction and 15% offset of emissions) by 2050. The Climate Action Council is responsible for preparing the Scoping Plan that will “achieve the State’s bold clean energy and climate agenda”.  They were assisted by Advisory Panels who developed and presented strategies to the meet the goals to the Council.  Those strategies were used to develop the integration analysis prepared by the New York State Energy Research and Development Authority (NYSERDA) and its consultants that quantified the impact of the strategies.  That material was used to write Draft Scoping Plan that was released for public comment at the end of 2021. The Climate Action Council will revise the Draft Scoping Plan based on comments and other expert input in 2022 with the goal to finalize the Scoping Plan by the end of the year.

Comments

The comment itself is a technical comment on a trivial problem and has no major bearing on Climate Act implementation.  However, it raises a pervasive issue that needs to be addressed.  All indications from the Climate Action Council meetings this year are that the plan for public involvement is simply going through the motions. There was no attempt to start identifying comments as they were submitted to determine if they rose to the level where the Council would have to address them specifically.  Instead, Council leadership has insisted that they can only respond once the comment period closes.   In addition, there is no provision for the kind of discrepancy documented here to be reconciled.  While this problem is not a big deal, the terrifying prospect is that the issues associated with reliability raised at last summer’s Reliability Planning Speaker Session could possibly be treated the same, that is to say ignored. 

Every time I have dug into the numbers, the Draft Scoping Plans numbers are not a reasonable estimate compared to my work. I have consistently found that the Scoping Plan costs estimates are biased high and the benefits proposed are biased low.  This is a specific example that shows that one of the conclusions for Scenario 4 is not correct.

In particular, this comment evaluated the transportation sector vehicle miles traveled difference between Scenarios 2 and 3 compared to Scenario 4 due to rail passenger improvements.  The Draft Scoping Plan claims that “Incremental reductions from enhanced in-state rail aligning with 125 MPH alternative detailed in Empire Corridor Tier 1 Draft EIS” will provide a reduction of 200 million light duty vehicle miles at a per unit cost of $6 per mile or $1.2 billion.  I estimate that the only valid cost for the difference between the rail alternatives is $8.4 billion and that it would only provide a reduction of 64.7 million miles.  While my estimate is for 2035, consistent with the Empire Corridor evaluation, and the Draft Scoping Plan is for 2050, I don’t think there is any question that the numbers are inconsistent.

Conclusion

I concluded that the Final Scoping Plan must provide more detailed documentation because there is little reason to trust the cost estimates in the Draft Scoping Plan because of the pervasive issues I have found.  I believe that the Final Scoping Plan documentation should provide sufficient information so that anyone can readily determine the costs and emission reductions for their particular concerns.  In my opinion in order to fulfill this obligation, the Final Scoping Plan must describe all control measures, assumptions used, the expected costs for those measures and the expected emission reductions for the Reference Case, the Advisory Panel scenario and the three mitigation scenarios. 

I have little hope that any of my comments will be considered much less acted upon.  The leadership of the Climate Action Council already has the answer from the back of book.  They are going through the motions of the public stakeholder process hoping that they can claim more people support the Draft Scoping Plan than don’t.  While comments from an individual like me may not be of consequence, the possibility that comments from the organizations responsible for reliability will also be dismissed does not portend well.

Author rogercaiazzaPosted on June 25, 2022February 18, 2023Categories Climate Act Comments SubmittedLeave a comment on Draft Scoping Plan Transportation Incremental Benefits Associated with Scenario 4 Comment

Climate Act Mandates that must be Considered in the Scoping Plan

The Climate Leadership and Community Protection Act (Climate Act) has a legal mandate for New York State greenhouse gas emissions to meet the ambitious net-zero goal by 2050.  To this point the Climate Action Council has failed to incorporate explicit Climate Act mandates related to expertise, an implementation safety valve, costs and benefits documentation, and consideration of the experiences of other jurisdictions.  This article describes my comment on the mandates.

Everyone wants to do right by the environment to the extent that they can afford to and not be unduly burdened by the effects of environmental policies.  I have written extensively on implementation of New York’s response to that risk because I believe the ambitions for a zero-emissions economy embodied in the Climate Act outstrip available renewable technology such that it will adversely affect reliability, impact affordability, risk safety, affect lifestyles, and will have worse impacts on the environment than the purported effects of climate change in New York.  New York’s Greenhouse Gas (GHG) emissions are less than one half one percent of global emissions and since 1990 global GHG emissions have increased by more than one half a percent per year.  Moreover, the reductions cannot measurably affect global warming when implemented.   This page documents all the comments that I submitted as part of the Climate Leadership and Community Protection Act implementation process. The opinions expressed in this post 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.

Climate Act Background

The Climate Act establishes a “Net Zero” target (85% reduction and 15% offset of emissions) by 2050. The Climate Action Council is responsible for preparing the Scoping Plan that will “achieve the State’s bold clean energy and climate agenda”.  They were assisted by Advisory Panels who developed and presented strategies to the meet the goals to the Council.  Those strategies were used to develop the integration analysis prepared by the New York State Energy Research and Development Authority (NYSERDA) and its consultants that quantified the impact of the strategies.  That material was used to write Draft Scoping Plan that was released for public comment at the end of 2021. The Climate Action Council will revise the Draft Scoping Plan based on comments and other expert input in 2022 with the goal to finalize the Scoping Plan by the end of the year.

Comments

My comment addressed four specific mandates in the Climate Act related to the Climate Action Council.  I have seen no sign that the Draft Scoping Plan will be evaluated with consideration of those mandates.  The Climate Act defines the composition and responsibilities of the Climate Action Council in § 75-0103 and I addressed the expertise, safety valve, costs and benefits, and consideration of other jurisdiction mandates.

Expertise

Section 2 of § 75-0103 notes that “at large members shall include at all times individuals with expertise in issues relating to climate change mitigation and/or adaptation, such as environmental justice, labor, public health and regulated industries.”  It is unreasonable to expect that all the members of the Climate Action Council will have the background, education, and experience to understand all the aspects of the net-zero energy transition but the ultimate product of the Scoping Plan is a set of recommendations that will inform the next Energy Plan so that expertise is needed.   Unfortunately of the 23 members of the Council only eight come from energy sector organizations or have some background in the energy sector.    

It is worrisome that some members who don’t have all that much background and experience still make flat statements that reliability is not a problem with a 100% renewable system.  The New York Independent System Operator’s 2022 Power Trends Report paints a different picture of the net-zero electric system stating flatly: “The New York grid faces unprecedented reliability challenges as the clean-energy transition gains momentum.”

Obviously, the experts responsible for maintaining current standards of reliability have to have the final say whether the recommendations for the New York Energy Plan are acceptable.  I strongly recommend that the Climate Action Council lay out a plan to work with the New York Independent System Operator (NYISO) and New York State Reliability Council experts to resolve differences between the electric generating projections in the Draft Scoping Plan and those made by the NYISO.

Safety Valve

The members of the Climate Action Council who think that there are not issues associated with reliability associated with a 100% renewable grid also believe that the energy transition must proceed no matter what because the law says so.  However, New York Public Service Law  § 66-p. “Establishment of a renewable energy program” includes a safety valve condition:  “(4) 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”. 

I recommend that the Council define the safety valve provisions for safe and adequate electric service, impairing existing obligations, and increase in arrears or service disconnections.  I recommend that those conditions be established up front and then be used to guide future development. Implementation plans should be evaluated against those criteria, proceed only if the conditions are met, and then tracked during implementation to see if they are being maintained.  How else is it possible to meet those criteria?

Costs and Benefits

In section 14,b of § 75-0103 the Climate Act specifically states that the costs and benefits analysis must: “Evaluate, using the best available economic models, emission estimation techniques and other scientific methods, the total potential costs and potential economic and non-economic benefits of the plan for reducing greenhouse gases, and make such evaluation publicly available.” 

This information is not currently available.  The only costs and benefits data support the claim in the Draft Scoping Plan that “The cost of inaction exceeds the cost of action by more than $90 billion”.  Initially, the only information provided in the supporting documentation was a series of figures as I documented in an article on my blog.  No numbers for the figures were provided.  It was not until May 29 that some of the numbers that were used in the Benefits and Costs chapter of Appendix G of the Draft Scoping Plan were made available.

However, the additional information provided does not meet the mandate to make the total potential costs and benefits publicly available.  There is no breakdown of costs within sectors that is needed to evaluate the validity of the estimates. I recommend that the Council address this mandate by defining what will meet this requirement. I believe that the Final Scoping Plan documentation should provide sufficient information so that anyone can readily determine the costs and emission reductions for their particular concerns.  In my opinion in order to fulfill this obligation, the Final Scoping Plan must describe all control measures, assumptions used, the expected costs for those measures and the expected emission reductions for the Reference Case, the Advisory Panel scenario and the three mitigation scenarios. 

Other Jurisdictions

In section 16 of § 75-0103 there is a mandate to consider efforts at other jurisdictions: “The council shall identify existing climate change mitigation and adaptation efforts at the federal, state, and local levels and may make recommendations regarding how such policies may improve the state’s efforts.”  There has been very little discussion of efforts at other jurisdictions.  The few times other jurisdictions were discussed it was mostly related to calls for greater aspirational goals.  I think that the emphasis should be on lessons learned so we can avoid the problems observed at other jurisdictions and that the scope should be expanded to include international jurisdictions that are trying to enact similar net-zero programs.

At the top of the list of problems at other jurisdictions that should be considered is the February 2021 Texas energy debacle.  For whatever reason the Texas electric system did not have enough generating resources available to meet the peak load requirements when Texans needed it most.  If New York’s implementation plan for net-zero leads to a similar situation where there isn’t enough energy available, then the result will be the same: massive costs and deaths due to a lack of heat.  The Climate Action Council must make sure that the Final Scoping Plan prevents this from happening.

I also recommend that the Council expand the scope.  There were recent reliability problems in Australia have to be considered so that similar problems do not occur in New York.  The United Kingdom and German affordability problems are also a concern that should be addressed by the Council.  If we do not learn from the experience of others than we are certainly doomed to make the same mistakes.

Conclusion

I am very disappointed that the leadership of the Climate Action Council has not addressed Council meetings on the safety valve provisions.  The existence of those conditions has not even been mentioned and it should have been when the suggestion was made that even there are no checks and balances on implementation programs.  As a result, the Final Scoping Plan may not be viable against reliability and affordability criteria.

This year subgroups have been established to address the natural gas transition, advanced fuels, and an economy-wide approach to fund the transition.  All these are important topics but the underlying and unaddressed issue is how to evaluate those strategies.    I believe that the evaluation criteria should be based on New York Public Service Law  § 66-p. “Establishment of a renewable energy program” safety valve conditions.  Unfortunately, the Council has not established any evaluation criteria.

Ultimately, the lack of focus suggests to me that the State is just going through the motions of the public stakeholder process and even the Climate Action Council deliberations.  The answer is in the back of the book and it would take a miracle to make meaningful changes to the Scoping Plan that detract from the narrative that meeting net-zero is only a matter of political will.

Author rogercaiazzaPosted on June 24, 2022February 18, 2023Categories Climate Act, Climate Act Comments Submitted, Climate Act Scoping Plan, Climate Action CouncilLeave a comment on Climate Act Mandates that must be Considered in the Scoping Plan

Climate Act Draft Scoping Plan Hydrogen Comment

The Climate Leadership and Community Protection Act (Climate Act) has a legal mandate for New York State greenhouse gas emissions to meet the ambitious net-zero goal by 2050.  Long-duration, dispatchable, and emission-free resources will be necessary to maintain reliability and meet the objectives of the Climate Act. This article describes my comments on the plans to use hydrogen to fulfill this requirement in the Draft Scoping Plan.

Everyone wants to do right by the environment to the extent that they can afford to and not be unduly burdened by the effects of environmental policies.  I have written extensively on implementation of New York’s response to that risk because I believe the ambitions for a zero-emissions economy embodied in the Climate Act outstrip available renewable technology such that it will adversely affect reliability, impact affordability, risk safety, affect lifestyles, and will have worse impacts on the environment than the purported effects of climate change in New York.  New York’s Greenhouse Gas (GHG) emissions are less than one half one percent of global emissions and since 1990 global GHG emissions have increased by more than one half a percent per year.  Moreover, the reductions cannot measurably affect global warming when implemented.   This page documents all the comments that I submitted as part of the Climate Leadership and Community Protection Act implementation process. The opinions expressed in this post 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.

Climate Act Background

The Climate Act establishes a “Net Zero” target (85% reduction and 15% offset of emissions) by 2050. The Climate Action Council is responsible for preparing the Scoping Plan that will “achieve the State’s bold clean energy and climate agenda”.  They were assisted by Advisory Panels who developed and presented strategies to the meet the goals to the Council.  Those strategies were used to develop the integration analysis prepared by the New York State Energy Research and Development Authority (NYSERDA) and its consultants that quantified the impact of the strategies.  That material was used to write Draft Scoping Plan that was released for public comment at the end of 2021. The Climate Action Council will revise the Draft Scoping Plan based on comments and other expert input in 2022 with the goal to finalize the Scoping Plan by the end of the year.

Comments

My comment addresses the use of hydrogen in some form or other as the Draft Scoping Plan placeholder technology for the Zero-Carbon Firm Resource or Dispatchable Emissions-Free Resource (DEFR) generally accepted as a complementary requirement when intermittent resources like wind and solar make up a significant portion of the electric grid resource mix.   Energy storage is required for intermittent resources but the cost for exclusive reliance on batteries is unacceptably high.  These resources are included to maintain reliability when the wind does not blow and the sun does not shine for long periods.  I concluded that the Final Scoping Plan has to do a much better job documenting the use of hydrogen for this resource to be considered credible. 

My comments summarize background information in the Draft Scoping Plan and from the New York Independent System Operator (NYISO).  I describe the Integration Analysis description of the Carbon-Free Electric Supply and the hydrogen costs provided in an Integration Analysis spreadsheet.  I also describe the on-going NYISO update to their System and Resource Outlook that addresses DEFR.  I used Francis Menton’s article, Hydrogen Is Unlikely Ever To Be A Viable Solution To The Energy Storage Conundrum, as the outline for the comments.  Mr. Menton graciously gave me permission to use his material freely, aka plagiarize his language.   

The NYISO Power Trends 2022 report sums up the challenge: “Long-duration, dispatchable, and emission-free resources will be necessary to maintain reliability and meet the objectives of the CLCPA. Resources with this combination of attributes are not commercially available at this time but will be critical to future grid reliability.”  The Draft Scoping plan speculates without sufficient justification that the “zero-carbon firm resource” projections for the future can be met using hydrogen in one form or another.  My concern is that the Plan does not provide enough reliable documentation to support the speculated use of hydrogen as the technology for this critical resource.  The comments describe specific issues that need to be explicitly addressed in the Final Scoping Plan if the Climate Action Council is to make a compelling argument that this technology will keep the lights and heat on when needed most.

The Draft Scoping Plan calls for the use of so-called “green hydrogen” whereby hydrogen is produced by a carbon-free process of electrolysis from water.  The first probem is that the costs for hydrogen produced using this technology are entirely speculative and by any reasonable basis of estimation will be extraordinaly high.  Compared to the cost of production using natural gas natural gas to produce hydrogen, “green” hydrogen will be more than five times more expensive.

I used a Seeking Alpha analysis to estimate the hydrogen needed if it was combusted to make electricity or used to power fuel cells.  For the NYISO and Integration Analysis scenarios I found that between 73 and 155 turbines sized at 288 MW would have to be dedicated for this resource application.  At this time the world’s largest hydrogen fuel cell is only 79 MW so between 266 and 566 fuels cells of that size would be required.

My analysis calculated the generation energy needed for electrolysis to support DEFR projections.  Scoping Plan Scenaro 2 requires 3,342 GWh of energy for DEFR and 12,812 GWh for electrolysis to produce the hydrogen to cover that requirementwhich is about half the projected imported wind total in 2040.  The Draft Scoping Plan emphasizes the use of solar over wind and it appears that the electrolysis requirements are covered by the solar generation projections.  Importantly, the NYISO draft Outlook Study projected DEFR requirements are an order of magnitude higher than the mitigation scenarios.  As a result, the energy needed for the hydrogen to cover that need (130,353 GWh) is more than the projected total solar, land-based wind, and wind import energy  (121,875 GWh) in 2040.  The Climate Action Council must reconcile the differences between these two estimates because of the ramifications on the energy needed for DEFR using green hydrogen.

The difference in projections also exacerbates the problem associated with the critical winter-time wind lull DEFR condition problem.  The mitigation scenarios call for much more solar capacity (43,432 MW) than the combined land-based wind, imported wind, and offshore wind (26,606 MW) capacity.  The Final Scoping Plan must ensure that an adequate amount of hydrogen is stored before the winter because the solar resource is so poor in the winter that it is unlikely that much, if any, replenishment during the winter can be expected.  It is also critically important that the worst-case wind lull is defined correctly because it if is not then there will not be sufficient hydrogen available to cover the DEFR resources and blackouts will occur.  The Climate Action Council must ensure the Final Scoping Plan addresses both of these issues to ensure a reliable electric system when it is needed the most.

There is a clear need for a feasibility analysis for the use of hydrogen as the DEFR.  For example, where will all the combustion turbines, electrolyzers, and fuel cells be located?  I suspect that there will be significant permitting issues with all the resources needed.  The capacity factors for this resource in the Draft Scoping Plan are 2% for all mitigation scenarios so there will be implentation issues.  In the exisitng system the generating sources designed for peaking power for this reliability requirement used the cheapest technology available (simple-cycle gas turbines) and a significant portion of the backup capacity is met by residual oil burning power plants.  Meeting this requirement in the future using the hydrogen DEFR resource will be using the most expensive generating technology available. 

There are numerous technical concerns that were not addressed in the Draft Scoping Plan. It is not clear whether the Draft Scoping Plan addressed the complex and energy intesive process of  compressing and liquifying hydrogen for storage and transport.  That will require large amounts of additional energy which may be additional cost not yet figured into the calculations.   I could not determine if the Draft Scoping Plan proposed to use the existing natural gas network in all or part.  Metal embrittlement caused by exposure to hydrogen will no doubt require major modifications and replacements for the existing infrastructure.  These costs must be clearly identified and  included in the Draft Scoping Plan.

Conclusion

There are members of the Climate Action Council that believe “the word reliability is very intentionally presented as a way of expressing the improper idea that renewable energy will not be reliable.”   The worst-case renewable availability period is expected to occur in the winter because solar resource availability is low because of the season, Great Lakes induced cloudiness, and the potential for snow on solar panels when there is a wind lull reducing that resource availability.  This is the particular period when the zero-carbon firm resource will be needed most.  The problem is exacerbated because those conditions are typically associated with the coldest weather of the year.  When the state’s heating and transportation systems convert to electricity the expectation is that maximum loads will occur during those periods.  These comments describe many implementation issues associated with using hydrogen for the zero-carbon firm resource not the least of which is using mostly solar PV as a dedicated source of the electrolyzer power.  I conclude that a feasibility analysis that address the questions raised is necessary.  Even better would be a demonstration project at large scale to show how a hydrogen-based power system would work and how much it would cost after including all of the extras and current unknowns not just for producing it but also for transporting it and handling it safely. 

I don’t know how much extra our energy would cost if we forcibly got rid of all hydrocarbons and shifted to wind and solar backed up by “green” hydrogen — and neither does anybody else.  An educated guess would be that the all-in cost of energy would get multiplied by something in the range of five to ten.  Yes, that would probably be a big improvement over trying to accomplish the same thing with batteries.  But it would still be an enormous impoverishment of the New Yorkers in the pointless quest to possibly shave a few hundredths of a degree off world average temperatures a hundred years from now.  

Not so long ago the idea that natural gas could be used a bridge fuel until these aspirational dispatchable emission-free resources could be tested at the scale needed, perform like a natural gas fired generating unit, and provide power at a similar cost, was generally accepted as a rational approach. The analogy for skipping the need for a bridge fuel is that the Climate Action Council wants to jump out of a perfectly good airplane without a parachute because they assume that the concept of a parachute will be developed, proven technically and economically feasible, and then delivered in time to provide a soft landing.  That cannot end well and this won’t either.

Author rogercaiazzaPosted on June 23, 2022February 18, 2023Categories Clean Energy Concerns, Climate Act Comments Submitted, Climate Act Scoping PlanLeave a comment on Climate Act Draft Scoping Plan Hydrogen Comment

Posts navigation

Page 1 Page 2 Next page

Search

Recent Posts

  • New York State Cap and Invest Politician BriefingMarch 23, 2023
    On January 10, 2023 New York Governor Kathy Hochul delivered her 2022 State of the State Address and provided legislation in her Budget Bill that proposed market-based Cap and Invest program.  Since then legislative amendments (Senate Bill 4008-B) to the Hochul Administration bill have been proposed.  I developed this briefing for politicians that provides specific … Continue reading "New York State Cap and Invest Politician Briefing"
  • NY Climate Act Cap and Invest Plan Going Off the RailsMarch 19, 2023
    One of my pragmatic interests is market-based pollution control programs. As part of New York’s budget process Governor Kathy Hochul announced a plan to use a market-based program to raise funds for Climate Leadership & Community Protection Act (Climate Act) implementation that is included in the Budget Bill.  I have looked at the language for … Continue reading "NY Climate Act Cap and Invest Plan Going Off the Rails"
  • Peaker Power Plants and Environmental InjusticeMarch 18, 2023
    The PEAK coalition has stated that “Fossil peaker plants in New York City are perhaps the most egregious energy-related example of what environmental injustice means today.”  The influence of this position on current New York State environmental policy has led to this issue finding its way into multiple environmental initiatives. However, the presumption of egregious … Continue reading "Peaker Power Plants and Environmental Injustice"
  • Climate Act and the Broken Window FallacyMarch 15, 2023
    One recurring narrative by proponents of the Climate Leadership & Community Protection Act (Climate Act) is that it will create significant economic activity.  However, it has always seemed counter-intuitive to me that all this economic activity requires subsidies but I have not been able to make that point well enough for an article.  A recent … Continue reading "Climate Act and the Broken Window Fallacy"
  • Climate Act Cap and Invest Program Numbers Do Not Add UpMarch 10, 2023
    One of my pragmatic interests is market-based pollution control programs. As part of New York’s budget process Governor Kathy Hochul announced a plan to use a market-based program to raise funds for Climate Leadership & Community Protection Act (Climate Act) implementation.  It has been touted as a solution for funding and compliance requirements because other … Continue reading "Climate Act Cap and Invest Program Numbers Do Not Add Up"

Categories

  • Accelerated Energy Growth & Community Benefit Act
  • Air Quality Issues
  • Clean Energy Concerns
  • Climate Act
  • Climate Act Cap & Invest
  • Climate Act Comments Submitted
  • Climate Act Costs & Benefits
  • Climate Act Electric Vehicles
  • Climate Act Environmental Impacts
  • Climate Act Feasibility
  • Climate Act Games
  • Climate Act Implementation Components
  • Climate Act Integration Analysis
  • Climate Act Legislation & Regulations
  • Climate Act Meetings
  • Climate Act NYS Reports
  • Climate Act Offshore Wind
  • Climate Act Overview
  • Climate Act Residential Heating
  • Climate Act Scoping Plan
  • Climate Action Council
  • Climate and Community Investment Act
  • Climate Change
  • Climate Justice Working Group
  • Comments to regulatory proceedings
  • Export
  • Global Warming
  • Guest Posts
  • National Grid 80 by 50
  • Natural Gas
  • Net Zero in Other Jurisdictions
  • New York Environmental Rights Amendment
  • New York State Energy
  • New York State Environmental Policy
  • NY Carbon Price Initiative
  • NY Climate & Community Protection Act
  • NY Green New Deal
  • Peaking Power Plants
  • PEONY Facebook Page
  • Pragmatic Environmentalist Principles
  • Regional Greenhouse Gas Initiative
  • Solar permitting
  • Transportation and Climate
  • Ultimate problem of resource availability
  • Uncategorized
  • Home
  • Menu
  • About
  • Contact
  • Citizen’s Guide to the Climate Act Page
  • Twitter
  • Facebook
  • Google+
  • GitHub
  • WordPress.com
Pragmatic Environmentalist of New York Blog at WordPress.com.
Pragmatic Environmentalist of New York
Blog at WordPress.com.
  • Follow Following
    • Pragmatic Environmentalist of New York
    • Join 115 other followers
    • Already have a WordPress.com account? Log in now.
    • Pragmatic Environmentalist of New York
    • Customize
    • Follow Following
    • Sign up
    • Log in
    • Report this content
    • View site in Reader
    • Manage subscriptions
    • Collapse this bar
 

Loading Comments...