Hecate Energy Cider Solar Permit Approval

The New York Office of Renewable Energy Siting (ORES) approved Hecate Energy’s permit for the 500-megawatt (MW) Cider Solar Farm on July 25, 2022.  Because this is the first permit issued by ORES for a project that’s application was initially filed with the new state office under the Section 94-c rules it is worth a look.  If this is any indication of how the State is going to permit all projects going forward I don’t think it will be in the best interests of the State.

New York’s Climate Leadership and Community Protection Act (Climate Act) Act establishes a “Net Zero” target (85% reduction and 15% offset of emissions) by 2050.  I have written extensively on implementation of the Climate Act.  Everyone wants to do right by the environment to the extent that efforts will make a positive impact at an affordable level.  My analysis of the Climate Act shows that the ambitions for a zero-emissions economy outstrip available renewable technology such that the transition to an electric system relying on wind and solar will do more harm than good.  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.

New York Permitting Requirements

New York’s Article Ten process defines the permitting requirements for all large-scale electric generating new construction or expansion.  It includes extensive and time-consuming public notification and public participation requirements.  The 2011 revisions to the Article Ten law were intended to speed things up but were largely ineffective in that regard.  In early April 2020, NYS passed the Accelerated Renewable Energy Growth and Community Benefit Act (AREGCBA) as part of the 2020-21 state budget.  The legislation was intended to ensure that renewable generation is sited in a timely and cost-effective manner.  

AREGCBA established the Office of Renewable Energy Siting (ORES) which is housed within the Department of State.  It will “consolidate the environmental review of major renewable energy facilities and provide a single forum to ensure that siting decisions are predictable, responsible, and delivered in a timely manner along with opportunities for input from local communities”.  All large-scale, renewable energy projects 25 megawatts or larger will be required to obtain a siting permit from the Office of Renewable Energy Siting for new construction or expansion.  However, during the transition developers can decide to finish their Article Ten permit application rather than convert to the new program.  The AREGCBA application requirements are intended to primarily speed the process up but there is a provision that makes the opportunity for input from local communities a sham.  In particular, ORES can find any local zoning code to be “unreasonably burdensome in view of CLCPA targets and the environmental benefits of the Facility” and simply over-ride the requirement.  The very first permitting decision over-rode a local noise ordinance.

New York Solar Development Background

I became aware of the particular issues of utility-scale solar development on agriculture after I had a couple of people contact my blog describing issues that they had and suggested that I look into the issue.  The problems that they raised are real, the solutions are available, but in the rush to develop as many renewable resources as quickly as possible the State of New York has dropped the ball on responsible utility-scale solar development.  Given the massive amount of projected utility-scale solar generation capacity required to meet Climate Act goals the rush to develop solar projects could easily lead to the permanent loss of significant amounts of prime farmland that will hurt farming communities and endanger Climate Act strategies to sequester carbon in soil. 

In my opinion if you are going to develop solar on the scale necessary, then there should be a plan for responsible siting. There is a policy option roadmap for the proposed 10 GW of distributed solar development.  However, there is not an equivalent set of policies for utility-scale solar development.   Given the magnitude of the potential impacts to prime farmland I submitted a comment to the Climate Action Council recommending that they impose 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. Not surprisingly there has been no response.

I described a workshop “What’s the Deal with Renewable Energy & Agriculture?” co-hosted by New Yorkers for Clean Power (NYCP) and Alliance for Clean Energy NY (ACENY) that discussed the compatibility of solar energy development and agriculture in New York State.  In my opinion, all the speakers were advocating responsible solar development that minimizes the use of the best agricultural farmland soils.  Whatever your position is with respect to the industrial solar development that to me is a key requirement.  If a project meets all the New York State Department of Agriculture and Markets (Ag and Markets) guidelines and the ORES requirements then, given the current state law mandating massive buildouts of solar energy, the application should be approved.

There are Ag and Markets guidelines that have been described in prepared testimony by Michael Saviola from the Department of Agriculture and Markets that I believe represent best practices and should be mandatory going forward.  In particular, “The Department’s goal is for projects to limit the conversion of agricultural areas within the Project Areas, to no more than 10% of soils classified by the Department’s NYS Agricultural Land Classification mineral soil groups 1-4, generally Prime Farmland soils, which represent the State’s most productive farmland.”   In a post on the Garnet Energy Center, I explained that the permit decision for that facility will be a litmus test to see if the State is going to protect farming communities.  The Saviola testimony clearly demonstrates that the proposed project is inappropriate because “the facility will result in or contribute to a significant and adverse disproportionate agricultural impact upon the local farming community”.  Unfortunately, a nearby similar solar project was approved despite the fact that the Ag and Markets testimony noted that for the Trelina Solar Project “The Department estimates that greater than 68% of the of the limits of disturbance includes the conversion of farmland classified as Prime Farmland Soil” which clearly exceeds the Department goal.

Solar developers are quick to point out that a landowner gets revenue when a solar project is developed.  However, when land is taken out of production it will reduce farm jobs and the economic activity may be improved during construction but once the facility is operational there are very few economic benefits to essential local businesses.  Furthermore, taking the land out of production may make other farmers who have been renting that land to make their operations viable will not be able to support the investments they have made in facilities, livestock, or equipment.  

Hecate Energy Cider Solar

According to the website summary the Cider Solar Farm will be a 500-megawatt photovoltaic solar facility capable of supplying 920,000 MWh (21% capacity factor).  It will use photovoltaic panels on tracking structures that follow the sun throughout the day to optimize power production.  It will be located in the towns of Elba and East Oakfield, Genesee County, NY.  For those unfamiliar with the area, it is pretty flat, fertile and great for farming. Unfortunately it is also good for cheap solar development.

The application materials are available on the Department of Public Service website.  The siting permit for the facility describes the project: 

The Project components will be located on a Project Site of approximately 4,650 acres, comprised of 67 parcels of leased private land owned by 31 land holding entities. The total Project Footprint is approximately 2,452 acres, which includes both temporary and permanent disturbance and comprises the limit of disturbance (LOD).

The proposed Solar Facility will directly contribute significantly to New York State’s Climate Leadership and Community Protection Act (CLCPA) targets by producing up to 500 MW of emissions-free, low-cost, renewable solar energy to New York’s energy market. The Facility will produce enough zero-emissions energy to power more than 125,000 homes in NYS. The Facility will also create job opportunities, support economic growth, and protect the public health, safety and environment by significantly reducing greenhouse gas emissions. Without limitation, the Facility will result in a reduction of over 400,000 tons of greenhouse gas emissions in New York State (DMM Item No. 35, Exhibit 2 Overview and Public Involvement, September 3, 2021, at 2).

It all sounds wonderful but the more you read the more issues come up.  The fact is that ORES can just do whatever it wants despite the concerns of the locals:

Executive Law § 94-c(5)(e) provides that a Siting Permit may only be issued if the Office makes a finding that the proposed Facility, together with any applicable Uniform Standards and Conditions, Site Specific Conditions, and compliance filings set forth in the Permit would comply with applicable laws and regulations. In making this determination, the Office may elect not to apply, in whole or in part, any local law or ordinance which would otherwise be applicable if it makes a finding that, as applied to the proposed Facility, it is unreasonably burdensome in view of the CLCPA targets and the environmental benefits of the proposed Facility.

In compliance with Executive Law § 94-c(5)(e), the Office has considered, without limitation, the proposed Facility’s contribution of up to 500 MW toward New York State’s CLCPA targets, and the environmental benefits of producing enough zero-emissions energy to power more than 125,000 homes in New York State and reduce greenhouse gas emissions by at least 400,000 tons in the State.

The Permittee has requested that the Office elect not to apply the following provisions of local law or ordinance. The Office hereby determines not to apply, in whole or in part, the following local law or ordinance provisions, which when applied to the proposed Facility, are unreasonably burdensome in view of the CLCPA targets and the environmental benefits of the proposed Facility. In making the determinations herein, the Office has balanced the proposed Facility’s competing impacts to multiple resources, and considered the Permittee’s proposed measures to avoid, minimize or mitigate those impacts to the maximum extent practicable, while ensuring protection of the environment and consideration pertinent social, economic and environmental factors.

Bottom line is that ORES over-ruled the Towns of Elba and Oakfield zoning ordinances that were“unreasonably burdensome” for the developer.  A quick skim through the response to comments reveals a similar attitude to dismiss any local issues and concerns.  For example, in response to a question about the impact of the project on property values the response was:

While § 94-c of the Executive Law does not require consideration of impacts on adjacent or nearby property values, it does require the Permittee to identify the relevant area of environmental concern and propose measures to avoid, minimize, or mitigate to the maximum extent practicable, potential significant adverse environmental impacts of the Facility.

Agricultural Resources

Exhibit 15: Agricultural Resources describes the zoning, farmland classifications, and infrastructure in the area, maps of the resources, and plans for agriculture, remediation, and co-utilization.  It defines three study areas in the Glossary of Terms.  The “Project Area” refers to the Project Site and surrounding/adjacent land totaling approximately 7,518 acres.  The “Project Footprint” refers to the limit of temporary and permanent disturbance within the Project Site caused by the construction and operation of all components of the Project totaling approximately 2,452 acres.  The “Project Site” refers to those privately owned parcels under option to lease, purchase, easement or other real property interests with the Applicant in which all project components will be sited totaling approximately 4,650 acres.

Exhibit 15 includes an assessment of agricultural land use within five miles of the Project Site.  In the discussion of the lands within certified NYS agricultural districts the text states: “The Project Area includes a total of approximately 7,845 acres, while the Project Site includes approximately 4,650 acres, and the Project Footprint is comprised of approximately 2,452 acres.”  Note that the Project Area in the Glossary (7,518) and in this paragraph are not the same. 

The section in this exhibit titled “Farmland Classification Mapping” lists landcover class data. 

According to NLCD data, the dominant landcover class in the Project Site is active agriculture, followed by forestland. Agricultural lands in the Project Site are comprised of active agricultural land (both row crops and mowed/maintained hayfields) and there are numerous family and commercial farms and farm structures in the Project Site. Row crops comprise approximately 68% (3,143 acres) of the Project Site, and less than 1% (23 acres) of the total Project Site is maintained hayfields. Additionally, there is approximately 3.5% (161 acres) of the Project Site where the dominant land cover is grasslands or pasturelands.

Relative to agricultural soils, the Project Site includes approximately 41% (1,912 acres) of land classified as Prime Farmland, 27% (1,252 acres) as Prime Farmland if Drained, 19% (891 acres) as Farmland of Statewide Importance, and 13% (596 acres) as Not Prime Farmland (Natural Cooperative Soil Survey 2020). A map of the existing farmland classifications within the broader Project Area is included as Figure 15-3: Prime Farmlands and Drainage Features. A discussion of how the Project will avoid or minimize impacts to agricultural production areas and the effects the Project has on use of the land for future farming operations is included in Section (b)(3) of this Exhibit.

There is another section “Active Agricultural Businesses and Related Infrastructure” that describes local farming.  It notes that the “Project Site is located within Genesee County Agricultural District #2 and includes approximately 3,166 acres (68%) of land designated as actively farmed.”  There are 11 farms within the Project Site and six non-participating farms within the Project Area but not within the Project Site. 

The “Potential Construction Impacts and Methods to Facilitate Farming During Construction” section gets to the core of my concern:

Potential impacts to agricultural land during construction will occur primarily from equipment movement and the installation of Project components including solar panels, mounting posts, inverters, access roads, buried electrical collection lines, temporary construction laydown areas and the substation. Most of these impacts will displace farming practices on agricultural lands during the operational life of the Project, while some construction activities will only create temporary disturbances to farming activities.

Although the solar panels and maintained areas, i.e., those areas within the fenceline not covered by panels or another project component, will cover approximately 2,178.9 acres total and 2,159 acres of active agricultural land, only 0.9 acres of permanent ground disturbance will occur for the installation of racking systems and associated steel posts. The Project’s racking system will be pile-driven to minimize subsurface ground disturbance. Areas under panel arrays would be taken out of agricultural production during the operational life of the Project, estimated to be a maximum of 30 years. Once Project construction has been completed, a native seed mixture will be used as ground cover to enable soil recovery, replenish soil nutrients and mitigate soil erosion. The Project will avoid using pesticides and herbicides, to the extent practicable,1 and surface grading will be limited to the minimal amount necessary to accommodate panel areas, access road and substation areas. A total of 2,159 acres of land will be removed from agricultural use during the operational life of the project. However, once decommissioned, agricultural land sited within the Project Footprint will be restored and able to return to its prior land use condition.

In my opinion this text removes any doubt that State policy is renewable energy is the priority over agriculture.  Recall that the Department of Ag and Markets goal is for projects “to limit the conversion of agricultural areas within the Project Areas, to no more than 10% of soils classified by the Department’s NYS Agricultural Land Classification mineral soil groups 1-4, generally Prime Farmland soils, which represent the State’s most productive farmland.”  The text does not present their numbers so that an easy comparison can be made.  The 4,650 acre Project Site is 41% Prime Farmland (1,912 acres) and another 27% (1,252 acres) would be Prime Farmland if drained.  The Ag and Markets goal is for the Project Area but no soil classification data are presented for that category.  The text admits that the solar panels and maintained areas of this project “will cover approximately 2,178.9 acres total and 2,159 acres of active agricultural land”.  It stands to reason farmers would actively cultivate Prime Farmland.  In that case the project is converting 88% of the Prime Farmland in the Project Site to solar panels and maintained areas.  There is no scenario where this project meets the Ag and Markets goal.

Discussion

There is plenty of land that could be used for solar farms that is not actively farmed prime farmland.  The New York State Department of Environmental Conservation Forests website states that forests cover 18.6 million acres of the state’s 30.2 million acres.  The New York Farm Bureau says that according to the United States Department of Agriculture 2017 Ag Census, there were 33,438 farms in New York State and 6,866,171 acres in production.  The following table is a summary of data in the Farmland Class of Soil Map Units in New York

Obviously, there is a desperate need for a development plan or there will be impacts on the viability of New York’s agriculture industry.  The question that the State has to answer is how much farmland can be converted to solar sprawl without impacting the agricultural sector.  Exhibit 15 argued that this is not permanent conversion but Department of Ag and Markets testimony has argued, correctly in my opinion, that when the panels reach their end of useful life they will be replaced with a new set of panels.  ORES apparently does not consider the Department of Ag and Markets solar siting goal on prime farmland a requirement and recent Article Ten proceedings have also ignored it. 

I have been following a number of solar projects and the project areas can be used to derive a first-order approximation of future land area needed as shown in the following table.  The project footprint using these numbers is 5.25 acres per MW.  At the current rate 67% of those acres are prime farmland. 

The cumulative effects are the primary concern.  Exhibit 15 includes an assessment of other local renewable projects within five miles of this project:

Based upon a review of the New York State Department of Public Service and ORES websites, as if the time of this Application, there are three proposed renewable energy facilities located in Genesee County and neighboring Orleans County. These include the 280-MW Excelsior Energy Center in the Town of Byron located approximately two (2) miles east; the 200-MW Orleans Solar Project in the towns of Barre and Shelby located approximately three (3) miles northwest; and the 200-MW Heritage Wind Project in the Town of Barre located approximately one and a half (1.5) miles north.

Based on the first order approximations from the previous table another 2,520 acres will be converted to glass, copper and steel solar sprawl and we will lose another 1,680 acres of prime farmland.  Eleven farms sold out to Hecate Energy for the Cider Solar project so we can expect to lose another ten for the two other solar projects.  How many customers can the local suppliers of farm materials and equipment afford to lose before they go out of business?

The Draft Scoping Plan had three scenarios for future solar resource development.  The total solar resources projected were between 41,420 and 43,432 MW in 2040.  There is a target for 10,000 MW of distributed solar so for an upper bound assume that utility-scale solar resources of at least 31,420 MW will be needed by 2040.  That equates to solar sprawl covering 164,961 acres and the loss of a large number of farmers.

Conclusion

It was difficult for me to write this post because I was so upset at the blatant disregard for agricultural issues evident in the decision to permit this facility.  There is plenty of land available that is not on prime farmland that can be used for solar development.  Until there is a state policy that codifies the Department of Ag and Markets guidance for solar development, out-of-state developers will come in and plop down these facilities where it is easiest and cheapest for them to build.  It would be even better for the State to develop a siting policy that incorporates that guidance and other factors so that development is as effective as possible.  I have little faith that the Climate Action Council will address this these needs

Europe’s Green Experiment

There are two glaring deficiencies in the implementation process for New York’s Climate Leadership and Community Protection Act (Climate Act): lack of detail about the costs to implement the transition to net zero and disregarding the experiences of other jurisdictions.  This post summarizes the current situation of the European plan to meet the same target as New York.  The Global Warming Policy Foundation just released a report entitled Europe’s Green Experiment – A Costly Failure in Unilateral Climate Policy.  I believe the Climate Action Council should explain how New York’s plan could possibly avoid the issues identified in this report in their Final Scoping Plan.

Everyone wants to do right by the environment to the extent that efforts will make a positive impact at an affordable level.  I have written extensively on implementation of New York’s Climate Act because I believe the ambitions for a zero-emissions economy embodied in the Climate Act outstrip available renewable technology such that it will do more harm than good.  The opinions expressed in this post are based on my extensive meteorological education and background and 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.

In section 16 of the Climate Act § 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.  The remainder of this article describes why I believe the European experience should be considered by the Climate Action Council.

Europe’s Green Experiment

John Constable wrote the new report describing the economic impact of European green policies. The European Climate Law:

…..raises the EU’s 2030 emissions reduction target to at least 55% from 40% and makes climate neutrality by 2050 legally binding.  The Climate Law is part of the European Green Deal, the EU’s roadmap towards climate neutrality. To reach its climate goal, the European Union has come up with an ambitious package of legislation known as “Fit for 55 in 2030. It comprises 13 interlinked revised laws and six proposed laws on climate and energy.

Constable writes:

These policies were built on a long-standing interest in renewable energy flows, stretching back into the 1930s but first prominent in response to the oil shocks of the 1970s. After 1990, this interest crystallised as demanding targets for levels of renewable energy in final energy consumption, starting in earnest in 2009, and the Emissions Trading Scheme, which began in 2005. These policy instruments were supported by a concerted and extensive program of public communications and supplementary environmental regulation, such as the Large Combustion Plant Directive of 2001, and its successor the Industrial Emissions Directive of 2016, both intended to address industrial release of harmful substances.

This general environmental effort has been tremendous, but the results are still poorly understood by the public upon whom the experiment has been performed. A host of pertinent questions hang in the air unanswered:

Have the EU member states reduced their emissions?

Have they reduced them in a cost-effective manner?

Are the policies setting an economically compelling example to other countries?

Has a self-supporting and internationally competitive green economy emerged in Europe?

Is Europe a leading developer of low carbon technologies?

How much has the green experiment cost?

Have there been any unintended consequences?

Can it continue?

What has been learned?

The report contains 14 sections that are all relevant to New York’s plans:

  • The Emissions Trading Scheme
  • Growth in renewable energy
  • Conventional electricity generation
  • Renewable heat and cooling
  • Renewable transport fuel
  • Total renewable energy progress
  • Costs and benefits
  • Energy efficiency
  • Energy prices in the EU
  • Energy production, consumption and productivity
  • Emissions in the EU
  • Green jobs and other jobs
  • Has the EU learned from its experiment?
  • The energy transition illusion and the future of European prosperity

I recommend that anyone interested in potential issues with New York’s plans read the report.  I am only going to summarize a few of the findings listed in the summary.

The section on the European Union Emissions Trading Scheme is relevant because the Climate Action Council has setup a subgroup to consider a carbon pricing scheme for New York.  The report notes that:

The Phase 3 of the European Union Emissions Trading Scheme (EU ETS) ran from 2013–2021 has added €78 billion to consumer costs in the bloc, with the annual cost now amounting to about €17 billion.  In 2020, EU member states paid €1.2 billion of ETS revenue to electro-intensive industries to compensate them for cost increases caused by the ETS itself in 2019. This amounts to about 12% of total ETS costs in that year and is clear evidence that the ETS has a detrimental effect on competitiveness. Germany paid €546 million, some 17% of its ETS revenue.

I see no reason to expect that similar costs to consumers will also occur if New York sets up a similar scheme.

The summary description of electricity, gas and transport fuel prices should be a cautionary tale.  It is impossible to compare the Draft Scoping Plan cost projections with the results observed because there is insufficient detail in the Draft Scoping Plan.  The report compares European Union (EU) energy costs to the world’s largest economies in the G20.  It found that in the period 2008 to 2018:

Electricity prices to households in the EU have been 80% above those in the G20.  Electricity prices to industries in the EU have been about 30% above those in the G20.  Gas prices to households in the EU have been approximately double those in the G20.  Gas prices to industries in the EU have been between 20% and 30% above those in the G20.  Diesel prices in the EU have been approximately 10% to 40% above those in the G20.  Petrol prices in the EU have been approximately 30% to 50% above those in the G20.  The EU’s underlying wholesale prices for electricity and gas were similar to those in the G20, and for both petrol and diesel the EU’s wholesale prices were below those in the G20, both indicating that the EU’s higher energy prices are due to policy.

I believe that the results shown for conventional generation capacity and system load factor will be replicated in New York.  The summary states:

In the period 1990–2020, total EU electricity generation capacity has nearly doubled due to growth in renewables, while thermal capacity, which remains essential to system stability, has declined sharply due to regulation and lack of investment signals.  Electricity industry productivity has fallen because the enlarged generation fleet serves a smaller demand. In 1990 the EU’s generation fleet load factor was approximately 56%, but by 2020 this has fallen to 37%.

In a recent post on the carbon pricing subgroup I noted that New York’s investments in emissions abatement costs have been very high so far.  The report notes:

Carbon dioxide abatement costs in the EU are on average several times greater than even high-end estimates of the social cost of carbon ($100/tCO2e), indicating that the economic harm of the EU’s mitigation policies is greater than is the climate change it aims to prevent.

One of the big claims in the Draft Scoping Plan is that the transition plan will provide jobs.  However, the results in Europe suggest that may not work out as proposed.  The summary of green industrial growth explains that:

Employment in the European wind and solar industries has contracted sharply since 2008, with the Spanish industry falling from over 200,000 jobs in 2008 to under 50,000 in 2021, and the German industry halving from over 60,000 to under 30,000 full-time equivalent jobs. Despite a small absolute increase in employment, the EU’s share of global renewables industry employment has fallen from 20% in 2012 to 13% in 2021, and the bloc has substantial presence only in those areas of low-carbon technology, such as biomass, where there is little international competition.  Subsidised deployment in Europe has failed to give European industries a secure position in the world markets for renewable energy equipment. The field is now dominated by China.

Conclusion

Constable concludes: “In spite of the overwhelmingly negative results from Europe’s green experiment 1990 to 2021, the EU Commission appears to have learned nothing; it has announced still more ambitious targets for low-carbon energy, and has even promised to reduce energy consumption still further, in spite of the obvious dangers.”  He suggests that “policy correction is inevitable but entails significant reductions in European standards of living”.  I agree with him that this will be the case in New York. 

The Climate Action Council should explain to the residents of New York why their plan will not result in the problems that have been observed in Europe.  If they cannot do that then this ideological experiment should be put on hold until they can prove otherwise.

Resource Adequacy Modeling for a High Renewable Future

In the process of preparing an article about the New York State Reliability Council (NYSRC) Executive Committee approval of the Extreme Conditions Whitepaper on July 8, 2022, I found a reference to a very nice report Resource Adequacy Modeling for a High Renewable Future.  The report provides important background information necessary to understand the NYSRC whitepaper so my first thought was to include a summary of the report in the NYSRC post.  It made the article too long so this post focuses exclusively on the background paper.

Everyone wants to do right by the environment to the extent that efforts will make a positive impact at an affordable level.  I have written extensively on implementation of New York’s Climate Leadership and Community Protection Act (Climate Act) because I believe the ambitions for a zero-emissions economy embodied in the Climate Act outstrip available renewable technology such that it will do more harm than good.  This post also addresses the mis-conception of many on the Climate Action Council that an electric system with zero-emissions is without risk.  The opinions expressed in this post are based on my extensive meteorological education and background and 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.

Resource Adequacy Modeling for a High Renewable Future

The National Regulatory Research Institute (NRRI) is the research arm of the National

Association of Regulatory Utility Commissioners (NARUC).  NRRI provides research, training, and technical support to State Public Utility Commissions. The June 2022 report “Resource Adequacy Modeling for a High Renewable Future “gives an excellent overview of electric resource adequacy planning as performed today and describes what they think will be needed in the future.

Traditional Resource Adequacy Planning

The report describes traditional resource adequacy planning:

Electric utilities have used the resource planning process for decades to develop long-term, least-cost generation supply plans to serve expected customer demand. Resource adequacy planning ensures that a system has enough energy generation throughout the year to serve demand with an acceptably low chance of shortfalls.  Resource adequacy is measured by the metrics described in Figure 1.  Reliability metrics provide an indication of the probability of a shortfall of generation to meet load (LOLP), the frequency of shortfalls (LOLE and LOLH), and the severity of the shortfalls (EUE and MW Short).

The industry has traditionally framed resource adequacy in terms of procuring enough resources (primarily generation) to meet the seasonal peak load forecast, plus some contingency reserves to address generation and transmission failures and/or derates in the system.  This approach and the metric used to define it is called the “reserve margin.”  Planners establish a reserve margin target based on load forecast uncertainty and the probability of generation outages. Required reserve margins vary by system and jurisdiction, but planners frequently target a reserve margin of 15 percent to 18 percent to maintain resource adequacy. Figure 2 shows the standard conceptualization of a load duration curve, rank ordering the level of a power system’s load for each hour of the year from highest to lowest on an average or median basis in a typical weather year. The installed reserve margin is a margin of safety to cover higher than expected load and/or unexpected losses in generation capacity due to outages.

Pechman, C. Whither the FERC, National Regulatory Research Institute. January 2021, available at http://pubs.naruc.org/ pub/46E267C1-155D-0A36-3108-22A019AB30F6.

New York resource planning analyses use the “one day in ten years,” criteria (LOLE), meaning that load does not exceed supply more than 24 hours in a 10-year period, or its equivalent metric of 2.4 hours loss of load hours (LOLH) per year. This analysis is performed at the “bal­ancing authority” (BA) level. In the past New York BAs were vertically integrated utilities with defined service terri­tories. After deregulation this responsibility passed to the state’s independent system operator (ISO).  The region covered now includes many utility service territories.  More importantly the New York Independent System Operator (NYISO) has to develop market or compliance-based rules to main­tain sufficient system capacity which adds another layer of complexity.  BA’s typically conduct resource adequacy analysis based on their own load and resources. The NYISO does their resource adequacy planning using resources within its geographic region or have firm transmission deliverability into the New York Control Area (NYCA).  There is another complication in the state.  New York City has limited transmission connectivity so there are specific reliability requirements for the amount of in-city generation that has to be operating and other rules to prevent blackouts.

The report goes on to note:

The standard metrics shown in Figure 1are generally reported as mean values of simulated power system outcomes over a range of potential future states, but planners also need to understand and plan for the worst-case outcomes and associated probability of such outcomes. Figure 3shows the mean and percen­tile values for loss of load hours for a power system over a three-year period.

In Figure 3,on average, the power system is resource adequate, remaining below the target of 2.4 hours per year. However, if the power system planner were more risk averse, she might want to bring a higher percentile line under the 2.4-hour target. She would need to add more firm capacity, adding to customer cost. The 95th percentile is the worst-case outcome, providing addi­tional information on the upper bound risk of outages for a given portfolio. Only power systems with no recourse to import energy in a shortage, such as an island, would consider planning to the 95th percentile due to its high cost.

The report’s traditional planning section concludes with this:

Resource adequacy planning is fundamentally con­cerned with low probability events and planning for average outcomes; although a common practice, this planning is not sufficient and increasingly risky with more uncertain supply, such as renewables. In the past, planners only needed to worry about unusually high loads or high forced outages. Now, they must worry about unusually high loads during periods of unusually low renewable output and limited storage duration. Adding supply uncertainty and, as we discuss later, more extreme weather, compounds risks and thus requires a fundamental rethinking of planning for low probability, high impact tail events.

Problems with Traditional Resource Planning with a High-Renewable System

Despite the fact that the NYISO and the consultants for the Integration Analysis that provides the framework for the Climate Act Draft Scoping Plan have identified a serious resource adequacy problem, there are vocal members of the Climate Action Council who claim there are no reliability concerns for the future 100% zero-emissions New York electric grid.  However, analyses have shown otherwise.  E3 in their presentation to the Power Generation Advisory Panel on September 16, 2020 noted that firm capacity is needed to meet multi-day periods of low wind and solar output.  The NYISO Climate Change Phase II Study also noted that those wind lull period would be problematic in the future.

The NRRI report opens the discussion of the new problems that have to be addressed:

With weather emerging as a fundamental driver of power system conditions, planning for resource ade­quacy with high renewables and storage becomes an exercise in quantifying and managing increasing uncer­tainty on both the supply and demand side of the equation. On the load side, building electrification, electric vehicle adoption, and expected growth in customer-sited solar and storage are likely to have pronounced effects on future electric consumption. Uncertain load growth and changing daily consump­tion patterns increase the challenge of making sure that future resources can serve load around the clock. Simply modeling future load based on past load with added noise does not characterize uncertainty from demand side changes.

The report goes on to explain that supply-side changes create a need for new modeling approaches.  In particular, the traditional system consists mostly of dispatchable resources that operators can control as necessary to keep the generation matched with the load.  In the future the system will be comprised mostly of resources with limited or no dispatchability. Table 1 compares past approaches with current needs.  Note that weather impacts need to be “Incorporated as a structural variable driving system demand, renewable generation, and available thermal capacity”. 

There is another fundamental change.  In the past the resource adequacy modeling could use average annual generation profiles to meet expected loads.  In the future, there will have to be: “multiple renewable generation simulations using historical generation and weather data”. The modeling scenarios will need to meet future expected resource development and maintain the correlation

between renewable availability and load.  In particular, the highest and lowest temperatures and thus the expected high loads are typically associated with large high-pressure systems that have low wind speeds and thus low wind resource availability.

The NRRI report shows an approach that addresses these concerns in Figure 5.  The report notes:

Weather, primarily in the form of temperature, but potentially including insola­tion, humidity, wind speed, etc., drives simulations of renewable generation and customer load. Generation outage simulations can be modeled as random (the traditional approach) or as correlated with extreme heat or cold events. Once the simulations are in place, models can compute multiple future paths on an hour-by-hour basis to determine when load cannot be fully served with the available resources. For every hour of the model time horizon, there are independent simulations of load, renewables, and forced outages to determine if load shedding must occur. If a particular model contains 100 simulations and four show a lack of resources to serve load for a particular hour, the hour in question would have a loss of load probability of 0.04 (4/100).

In my opinion, the weather drivers have to be carefully considered.  In my Comment on Renewable Energy Resource Availability  on the Draft Scoping Plan, I explained why an accurate and detailed evaluation of renewable energy resource availability is crucial to determine the generation and energy storage requirements of the future New York electrical system.  I showed that there is a viable approach using over 70 years of data that could robustly quantify the worst-case renewable energy resources and provide the information necessary for adequate planning. 

The problem however is what will be the worst case?  The NRRI report brings up the issue of energy storage:

Energy storage presents a unique challenge in re­source adequacy models. Unlike traditional resources, storage devices such as batteries, compressed air, or pumped-hydro act as both load and generation de­pending on whether they are charging or discharging. Modern resource adequacy models need to simulate this behavior when determining the capability of en­ergy storage to serve load during periods of resource scarcity. What state of charge should we expect for energy storage at times when the storage is truly needed? Are batteries likely to be fully charged at 6:00 PM on a weekday in August? What about grid charging versus closed systems where batteries must charge from a renewable resource? At the high end of renew­able penetration, how much storage would be required to cover Dunkelflaute, the “dark doldrums,” that occur in the winter when wind ceases to blow for several days. Questions surrounding the effective load-carrying capability of energy storage significantly increase the complexity in modeling resource adequacy.

The worst-case meteorology has to consider the energy storage resource.  The worst-case may not be the lowest amount of wind and solar resources over a few days.  Instead, it could be an extended period of conditions that prevent battery re-charging.  I suspect that the long-term historical records will be used to identify potential problems and then a set of scenarios based on different meteorological regimes will be developed that can be used to address the questions raised in the previous paragraph.

The NRRI report explains how this might work:

Figure 6 provides an illustration of modeling the use of batteries in resource adequacy. The figure shows bat­tery storage in blue, load in orange, and the available thermal generation in grey. When load exceeds thermal generation, the system is forced to rely on battery discharge for capacity. If the event lasts long enough to fully discharge the battery, the green line (generation minus load) will turn negative, indicating a load shed event.

The report goes on to explain how the modeling analysis is done.  It notes that:

Simulations of random variables fit Monte Carlo meth­ods by creating multiple future time series of the ran­dom variables, while maintaining correlation across time within variables (if wind is high in hour 1, it will likely be high in hour 2) and correlations between the variables, such as the strong relationship between temperature and load. If wind tends to be higher in the spring and fall, the simulations will exhibit that trend. Monte Carlo applications differ dramatically between resource adequacy models, with some models using a sequential approach that solves the model in hourly steps whereas others use techniques that solve the models quickly without stepping through each hour. Accurate representation of energy storage in resource adequacy models necessitates sequential solution techniques to account for the time dependencies for storage state of charge inherent in models.

I believe it is necessary to use the worst-case meteorological scenarios as the primary driver of these simulations.  In other words, the Monte Carlo weather parameter adjustments should be small increments on top of the observed values.  The report is talking primarily about correlations in time but spatial correlations are a critical wind resource availability consideration too. 

The NRRI report addresses my concerns.

When using the Monte Carlo approach with weather as a fundamental driver, individual simulations represent independent futures for weather, load, and renewables. Realistic simulations maintain the statistical properties of the underly­ing resource and correlation be­tween resources and load. For example, if historic data show no correlation between load and wind generation, the simulations should maintain this relationship unless a reasonable expectation exists for correlations to change in the future

However, they use simple examples of the load and resource correlations.  There are those that believe that because the wind is always blowing somewhere that transmission upgrades will ensure reliability.  However, if during the worst-case conditions New York has to rely on wind resources in Iowa because the high-pressure system is huge, that may not be practical.  I cannot over-emphasize the need for an analysis that simulates wind and solar resource availability over wide areas.  As the report notes analyses that fail to replicate the proper correlation between wind, solar, and load for the electric grid can underestimate the risk of load shedding.

The report goes on to explain other adjustments to traditional resource planning that will be necessary to address a high renewable future.  That discussion is beyond the scope of my concern.  The report concludes:

The electric grid is transitioning quickly from a system of large, dispatchable generators to a system reliant on high levels of variable renewable energy, energy storage, and bi-directional flow. Against this backdrop, analytical tools used for decision making regarding resource adequacy are more important than ever and those tools need to evolve to meet the modern grid challenges outlined in this paper. Models based in realistic weather-driven simulations more accurately capture the risk of load shedding due to inadequate generation. Simulations derived from historical data ensure models include load and generation patterns as well as correlations among resources and the ability to adjust to future climate conditions. Models that do not account for these factors may lead to decisions that underinvest in resources or invest in the wrong re­sources. Recent events in California and Texas indicate the importance of getting these projections right to keep the grid reliable.

To model resource adequacy in future power systems with high penetration of renewables, we recommend several enhancements in modeling tools and tech­niques. Modeling tools should simulate key structural variables and allow for validation of the simulations by benchmarking against the historical data used to create the simulations. While maintaining statistical properties derived from historical data, simulations should also include future expectations of load growth along with changes in seasonal and daily load shapes. Genera­tion-forced outage simulations should include the possibility of correlated outages from extreme weather. Finally, climate change will drive more weather events in the power system and this risk should be accounted for in the models, at least in the form of sensitivity cases or stress tests.

Conclusion

I found this report to be a very useful description of the particulars of electric grid reliability analysis now and in the future.  It is clear that the transition to a high renewable future introduces issues that could cause problems.

Finally, this report and other similar studies always claim that climate change should be considered in future analyses.  As I will explain in my future article on the NYSRC Extreme Conditions Whitepaper I believe that the most important future weather concern is that changing the resource mix to one relying upon weather-dependent wind and solar generation is the critical vulnerability that has to be addressed.  I think that the trend of extreme weather events due to greenhouse gas concentrations in the atmosphere is much smaller than natural variability.  Therefore, using a long record of data for evaluation will cover most of the potential future variability.  Unfortunately, recent major blackouts due to extreme weather suggest that we haven’t even been able to plan for the past.  So far New York has avoided such a blackout either due to more stringent standards and better policy development or luck.

Easily Solvable

A different version of this article was posted at Watts Up With That.

Just when I think that the climate-related madness cannot get any shoddier something comes up even worse.  The American Meteorological Society (AMS) Council adopted a special statement on 8 July 2022 in response to the Supreme Court decision West Virginia vs. EPA that takes the level of climate change hysteria to a whole new level.

New York’s Climate Leadership and Community Protection Act (Climate Act) plans to reach net-zero by 2050 that are outlined in the Draft Scoping Plan fully align with the material in this Statement.  I submitted comments on the Plan and have written extensively on implementation of New York’s response to that risk because I don’t agree that the alleged problem can be solved simply and affordably. 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.

Special Statement of the American Meteorological Society

The AMS is deeply concerned by the United States’ inadequate response to climate change and the dangers it poses to the nation and all life. This inadequacy is illustrated most recently–but by no means only–through the Supreme Court decision West Virginia v. EPA.

Climate change is a highly solvable problem and the available solutions offer tremendous opportunity for societal advancement and climate protection. We applaud the many people throughout the country who are working constructively to tackle climate change, including many government officials, politicians, members of the public, scientists, and members of the business community.

All people should know that:

1. Climate change is extraordinarily dangerous to humanity and all life

> Climate is a basic life-support system for people and all life.

> Global climate changes occurring now are larger and faster than any humanity is known to have endured since our societal transition to agriculture.

> The physical characteristics of the planet, biological systems and the resources they provide, and social institutions we have created all depend heavily on climate, are central to human well-being, and are sensitive to climate change.

2. People are changing climate

> Multiple independent lines of scientific evidence confirm that people bear responsibility.

> The warming effect of our greenhouse gas emissions is demonstrated through laboratory experiments, evidence from past changes in climate on Earth, and the role of greenhouse gasses on other planets.

> The patterns of climate change occurring now match the characteristics we expect from our greenhouse gasses and not the other potential drivers of change: the sun, volcanoes, aerosols, changes in land-use, or natural variability.

3. The scientific conclusions summarized here result from decades of intensive research and examination

> The scientific evidence has been assessed comprehensively by independent scientific institutions and independent experts that consider all evidence.

> Accuracy is central to credibility for scientific institutions such as the U.S. National Academy of Sciences, the American Meteorological Society, and American Association for the Advancement of Science, all of which have assessed climate science.

> No broadly contradictory assessments from credible scientific organizations exist.

4. Solutions are available and highly promising–a serious reason for optimism.

> Greenhouse gas emissions are an economically harmful market failure. Those who emit pollution to the atmosphere shift the costs of climate damage onto everyone, including future generations. Making emitters pay for all the costs of their use of our atmosphere would help correct this failure and thereby improve economic well-being.

> Regulatory approaches can speed the adoption of best practices, require broadly beneficial technologies, promote public interest, and enhance equity and fairness.

> As a result, reducing greenhouse gas emissions can increase climate security, national security, the well-being of biological systems, and economic vitality.

> Existing and emerging technologies such as roof-top solar, electric vehicles, and electric heat pumps can reduce greenhouse gas emissions, improve air quality in our homes and cities, and often provide superior products or services.

> Building our resilience to climate impacts (adaptation) makes communities stronger and better able to deal with both existing vulnerabilities and emerging threats.

People are changing climate and it poses serious risks to humanity. There are a wide range of response options that are well understood, many of which would be broadly beneficial. We will need to work together to harness human ingenuity to address climate change. Therein lies an even greater opportunity for humanity. If we can address our climate problem, we will have a new template for the wide range of challenges and opportunities facing us at this point in the 21st century.

Discussion

Tony Heller writing at Real Climate Science eviscerated the “Climate change is extraordinarily dangerous to humanity and all life” statement.  He showed that natural disasters are decreasing and life expectancy has doubled since fossil fuel use has become widespread across the globe.  Willis Elsenbach’s post Where is the Climate Emergency is a more comprehensive rebuttal to this statement.  My comments on similar claims in the Draft Scoping Plan also argued that if you actually look at the data that these threats are unsupportable.

I stopped being a member of the AMS in 2012 when the organization ranked advocacy above science. I tried to argue that their approach was wrong but the responses back showed that they were not interested in toning down their advocacy.  The arguments supporting the “People are changing climate” statement appear to be talking points for the public.  Near the end of the Trump Administration a series of short, easily understandable brochures that support the general view that there is no climate crisis or climate emergency, and pointing out the widespread misinformation being promoted by alarmists through the media were prepared.  The following brochures address the other side of these arguments:

The section “The scientific conclusions summarized here result from decades of intensive research and examination” is a direct appeal to authority.  The recent Global Warming Golden Goose article summarizes the follow the money trail that suggests that the scientific institutions we are supposed to trust are not necessarily interested in only scientific truth and enlightenment.  It amuses me that the first ones to scream that deniers are on the payroll of big oil are most likely to be directly benefiting from big green funding organizations.

The next section “Solutions are available and highly promising” shows an amazing lack of self-awareness.  The point of the previous section was that you should trust only the “experts”. Why in the world would anyone expect that the American Meteorological Society has expertise in energy solutions.  The vague, content-free arguments are a joke to anyone who has spent any time looking at the tremendous technological difficulties associated with running today’s society using intermittent and diffuse wind and solar or even follows today’s energy issues.  Any proposed transition plan that does not list nuclear power at the top of the list is not credible because that is the only source of dispatchable emissions-free electricity that can be scaled up. I also have to wonder whether the authors follow current energy news. My feed of followed websites this weekend had articles on copper shortages that will preclude the net zero by 2050 transition, the amount of solar panels needed for the transition, the German net-zero transition is running out of energy, and the current Texas heat wave is straining power supplies so much that electric car owners are being asked to charge off-peak. My Draft Scoping Plan comments focused on the many instances where New York’s plan to transition to net-zero is anything but easy.  All of these issues invalidate the claim that the climate threat is “easily solvable”. 

Once upon a time I was proud to be a member of the American Meteorological Society.  This policy statement is so embarrassing I don’t want to admit I was associated with a scientific organization that could publish something this far detached from reality.   Unfortunately, it will undoubtedly be used by advocates to “prove” that something can be done.  In my opinion I have no doubts that the suggested solutions will cause more harm than good.

Manifesto for a New Prime Minister – Climate Act Lesson from Great Britain

Over the past several months I have been preparing comments on the Draft Scoping Plan for the  Climate Leadership and Community Protection Act (Climate Act) which is New York’s version of the United Kingdom Net Zero plan.  Recently Paul Homewood published Manifesto for a New Prime Minister that offered a plan to address the fact that while polls say the public is in favor of Net Zero, they also show that they don’t want to pay for it.  Homewood’s manifesto does not propose to cancel Net Zero.  Instead, he proposes recommendations to modify it.  I suggest that adapting this manifesto to New York is appropriate now because the impacts seen in Great Britain are inevitable here.

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.

MANIFESTO FOR 2022

Paul Homewood’s Manifesto for a New Prime Minister lists 16 policy actions that he believes would reverse course from what he describes as a “hard left eco agenda in the British Net Zero plan.  I have attached the Manifesto to the end of this post.  In the following I offer my annotated comments to the manifesto.

In the Preamble Homewood describes the problem and his recommendations.

It is gradually dawning on the public just how ruinously expensive and suicidal the Net Zero project is going to be.  Sadly though, Net Zero is embedded across all the main political parties, throughout the establishment and the media. There is therefore no realistic chance that it will be abandoned anytime soon.  However, there are a number of things which could and should be done, that would effectively put the brakes on Net Zero and help to reduce some of the costs already being incurred by the public because of climate policy.

Implementation of the New York Climate Act has just started so the public has not had any direct experience on costs yet.  Moreover, the cost information in the Draft Scoping Plan is notably vague and what is provided is misleading.  The New York situation is similar inasmuch as the establishment is firmly behind the Climate Act and I fear that if push came to shove that the Republicans would not come out to completely repudiate it.  Instead, the ideas embodied in the Manifesto might be acceptable.

Homewood proposes two fundamental principles:

All government actions regarding Net Zero should be consistent with two fundamental principles:

1) Policy should be affordable, both for the public and government finances.

2) Decarbonization in future should not be at a faster rate than the rest of the world.

I wholeheartedly agree with these.  Affordability has to be a primary concern.  I argued in my comments that the implementation program should be conditional based on a standard of affordability.  It is also hard to argue that our action should not be considered in the context of the rest of the world.  New York emissions are less than half a percent of global emissions so action on our own will not affect global warming.  Therefore, it is only logical that our implementation should be tied somehow to global actions.  I believe it would be far better for New York to invest in the development of zero-carbon technology that costs less than to try to use today’s wind, solar, and energy storage technology.

Homewood describes 16 policy actions in his manifesto:

1) All Carbon Budget targets should be suspended.

The Climate Act has similar targets and they should also be suspended or made contingent upon meeting certain standards of affordability, reliability and environment impacts.

2) The proposed ban on gas boilers should be postponed until alternatives are cost competitive

New York has not reached the point where natural gas, fuel oil, and propane fired furnace bans have been enacted.  New York should prove its affordability case before passing legislation banning those furnaces.

3) The proposed ban on petrol/diesel cars should also be postponed, until:

a) Alternatives are cost competitive

b) Solutions are found for the millions of drivers without off-street parking

c) A nationwide charging network is established, with sufficient capacity and at no cost to the public purse

d) The electricity grid and distribution network has been upgraded

These are appropriate conditions for electric vehicle implementation in New York.

4) Immediately abolish carbon pricing and the UK Emissions Trading System, which is already driving up power prices.

The Climate Action Council is debating carbon pricing schemes at this time.  Carbon pricing legislation was proposed last year but failed to advance to a vote given the opposition.  This year New York State suspended the gas tax which is entirely inconsistent with the plan to raise fuel costs.

5) Implement an Intermittency Tax for wind and solar generators, so that they bear the cost of standby and grid balancing, instead of electricity consumers.

The market rules for wind and solar generators are still under development in New York.  It is only a matter of time until this becomes an issue.  In my opinion, the market price paid to generators should be made a function of dispatchability.  Full price should only be paid to those generators that are fully dispatchable.

6) Implement a Windfall Tax on all recipients of Renewable Obligation Certificates, who currently benefit from high wholesale power prices in addition to ROCs, which currently cost consumers £6bn a year. The revenue to be used to offset ROC costs currently added to electricity bills.

7) End all constraint payments to wind farms

I am not conversant whether New York policies are similar and would need to be addressed.

8) Put a stop to all new subsidies for renewable energy

If it is so wonderful and so cheap why would new subsidies be required anyway?

9) Fully commit to a long tern future for North Sea oil and gas, necessary to encourage development. This must include a recognition of the need for substantial amounts of natural gas in the medium term.

10) End the ban on fracking, and lift all unnecessary restrictions which were previously in place.

In the context of the global energy crisis a case can be made that New York’s failure to permit natural gas pipelines to New England is the not in the best interest of national security because New England is dependent upon Russian natural gas due to lack of supply.  The Draft Scoping Plan makes references to trying to reduce dependency upon out-of-state fuel supplies but ignores the fact that the ban on fracking precludes New York from developing its own in-state supply.

11) Extend the life of existing coal power plants.

New York has closed its last coal plant and now the energy innumerates are clamoring to shut down all fossil fuel plants.  That would be a disastrous policy.

12) Fast track mini nuclear development.

I endorse the recommendations of New York Energy and Climate Advocates who call for including nuclear power in the Draft Scoping Plan recommendations. Personally I think the most promising approach is small modular reactors.

13) Immediately approve the Cumbria coal mine

There is no New York coal mining.

14) Guarantee that no new taxes will be raised, designed to “encourage” consumers away from high carbon consumption. In particular, no new tax on meat or gas.

I agree with this recommendation.

15) Put an immediate stop on plans to force landlords to meet higher energy efficiency and low-carbon standards

There are similar plans in New York that will increase costs to those least able to afford them.  I agree with this limitation.

16) Put an end to plans to ban mortgages for homes which don’t meet energy efficiency and low-carbon standards.

There is nothing like this in New York but the state also hasn’t legislated a policy to force homeowners to meet energy efficiency and low-carbon standards yet either.

Homewood concludes with a description of the financial impacts of the recommendations.  He claims that his suggestions for carbon pricing, intermittency tax, windfall tax, and constraint payments would provide total savings of £9.9 billion and would reduce average household energy bills by £366 a year.  New York has not provided any estimates of average household energy bill impacts.  I believe the inevitable costs for the Climate Act would be multiples of that household cost.

Conclusion

I want to re-emphasize the point that polls in the United Kingdom say the public is in favor of Net Zero but they also show that they don’t want to pay for it.  I convinced that the majority of New Yorkers are not even aware of the Climate Act.  Even if people know about the Climate Act, they cannot find cost information because it is being withheld, obscured, and covered up.  As a result, New York is not as far along as Great Britain in facing up to the inevitable problems with affordability that have been observed at every jurisdiction where zero-emission transitions have been attempted.

The Climate Act has a mandate to the Climate Action Council to consider what is happening in other jurisdictions.  If the Climate Action Council considers what is happening in the United Kingdom and Germany at this time the necessity for conditional implementation would be obvious.   In my opinion, the desirability of these recommendations may not be obvious now but over time it will become clear that this is the way to go.

MANIFESTO FOR 2022

Preamble

It is gradually dawning on the public just how ruinously expensive and suicidal the Net Zero project is going to be.

Sadly though, Net Zero is embedded across all the main political parties, throughout the establishment and the media. There is therefore no realistic chance that it will be abandoned anytime soon.

However, there are a number of things which could and should be done, that would effectively put the brakes on Net Zero and help to reduce some of the costs already being incurred by the public because of climate policy.

Fundamental Principles

All government actions regarding Net Zero should be consistent with two fundamental principles:

1) Policy should be affordable, both for the public and government finances.

2) Decarbonization in future should not be at a faster rate than the rest of the world.

Policy Actions

The following actions are therefore proposed:

1) All Carbon Budget targets should be suspended.

2) The proposed ban on gas boilers should be postponed until alternatives are cost competitive

3) The proposed ban on petrol/diesel cars should also be postponed, until:

a) Alternatives are cost competitive

b) Solutions are found for the millions of drivers without off-street parking

c) A nationwide charging network is established, with sufficient capacity and at no cost to the public purse

d) The electricity grid and distribution network has been upgraded

4) Immediately abolish carbon pricing and the UK Emissions Trading System, which is already driving up power prices.

5) Implement an Intermittency Tax for wind and solar generators, so that they bear the cost of standby and grid balancing, instead of electricity consumers.

6) Implement a Windfall Tax on all recipients of Renewable Obligation Certificates, who currently benefit from high wholesale power prices in addition to ROCs, which currently cost consumers £6bn a year. The revenue to be used to offset ROC costs currently added to electricity bills.

7) End all constraint payments to wind farms

8) Put a stop to all new subsidies for renewable energy

9) Fully commit to a long tern future for North Sea oil and gas, necessary to encourage development. This must include a recognition of the need for substantial amounts of natural gas in the medium term.

10) End the ban on fracking, and lift all unnecessary restrictions which were previously in place.

11) Extend the life of existing coal power plants.

12) Fast track mini nuclear development.

13) Immediately approve the Cumbria coal mine

14) Guarantee that no new taxes will be raised, designed to “encourage” consumers away from high carbon consumption. In particular, no new tax on meat or gas.

15) Put an immediate stop on plans to force landlords to meet higher energy efficiency and low-carbon standards

16) Put an end to plans to ban mortgages for homes which don’t meet energy efficiency and low-carbon standards.

Financial Impact

Many of the above actions could be speedily introduced and would have an immediate impact on energy bills.

For instance:

  • Carbon pricing – £1.4bn
  • Intermittency tax – £2.0bn
  • Windfall Tax – £6.4bn
  • Constraint payments – £0.1bn

A total saving of £9.9 billion would reduce average household energy bills by £366 a year.

Climate Act Misinformation

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.  At the May 26 Climate Action Council meeting the topic of misinformation came up.  I found that discussion troubling and the proposed response unacceptable.

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 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.

The May 26, 2022 Climate Action Council meeting  (recording) included an agenda item for Council members to describe their impressions of comments made at the public hearings  I think the public hearings  was the first time that opinions from outside the echo chamber of Albany politics and climate advocacy were heard by Council members.  Unfortunately, the reaction to those objections was dismissive.  This article lists examples of explicit Council claims about misinformation and misunderstandings in the public hearing presentations.  I note that there are inconsistencies between their remarks about what they think is in the Draft Scoping Plan and what is actually in it.   In particular there are issues with the Council remarks regarding reliability of the projected future electric grid, heat pumps, and jobs. 

Propaganda

The members of the Council that were most concerned about misinformation also argued that a public information campaign was needed so that the “correct” story could be heard.  I argue below that it is important that the public outreach present a balanced overview of all of the issues so that the public can decide for themselves.  Otherwise, the public information effort will just be propaganda.

I follow a blog that had a recent article about human language and persuasion that included a good summary of propaganda.  The article, A Serf’s Primer on Human Language, described the contents of Joseph Goebbels diary (translated by Louis Lochner).  The diary describes the basic principles of propaganda:

  • Avoid abstract ideas – appeal to the emotions.
  • Constantly repeat just a few ideas.
  • Give only one side of an argument.
  • Constantly criticize your opponent.

I do not believe that there is any parallel between the motives of the Nazi party to indoctrinate a country to accept the evils of that regime and the Climate Action Council’s public information campaign.  However, I do want to point out that propaganda can pervert any public decision-making processes.  Therefore, the plan for public information should avoid unintentionally using these principles.

Misinformation and Misunderstandings

Two Council members talked about misinformation and misunderstandings but did not describe specific examples.  Basil Seggos discussed his thoughts starting at 19:50 of the recording and brought up the subject of public engagement.  He admitted that when they got out into public that they gained a better appreciation of the scale of the challenge.  He said it was tough to communicate the challenges but when on to say there is lots of “misinformation and misunderstanding but also lots of excitement and support”.  Raya Salter (speaking at 37:27 of the recording) claimed that there are two lobbying groups: paid advocacy community and the paid misinformation community.  She said there were well-funded efforts to spread the misinformation and that there is no voice challenging it.  I think these remarks represent criticism of the opponents of the plan and those who support it in principle but think that adjustments and alternatives would improve it.

Another topic for misinformation according Council member comments was concerns about the reliability of an electric system that relies on wind and solar.  Paul Shepson (starting at 23:39 of the recording said:

Mis-representation I see as on-going.  One of you mentioned the word reliability.  I think the word reliability is very intentionally presented as a way of expressing the improper idea that renewable energy will not be reliable.  I don’t accept that will be the case.  In fact, it cannot be the case for the CLCPA that installation of renewable energy, the conversion to renewable energy, will be unreliable.  It cannot be.

Robert Howarth, starting at 32:52 of the recording) picked up on the same issue.  He said that fear and confusion is based on mis-information but we have information to counter that and help ease the fears.  He stated that he thought reliability is one of those issues: “Clearly one can run a 100% renewable grid with reliability”, although he did admit it had to be done carefully.  Two quotes from a recent New York Independent System Operator presentation directly contradict them: “Significant uncertainty is related to cost / availability of Dispatchable Emissions Free Resource IDEFR) technologies, as well as regulatory definition of ‘zero-emissions’ compliant technologies” and “Some scenarios do not represent realistic system performance but are helpful in identifying directional impacts and sensitivity to key variables”.  I have explained that is as close as a technical report can come to saying this won’t work as you can get without actually saying it.  Advocates for renewable energy solutions constantly repeat the argument that the technology works but don’t address the arguments from those who point out all the issues.

Disparaging speaker remarks about heat pumps for heating electrification were also described as misinformation.  Robert Howarth (starting at 32:52 of the recording) said that another area for misinformation is heating with heat pumps. He has one and has repeatedly said that his works.  He went on to say that “Anyone who says otherwise is just misinforming”.  He concluded that there are forces out there that are working to counter our messages with misinformation.  He hit three out of four propaganda principles: Constantly repeat just a few ideas, give only one side of an argument, and criticize your opponent.

Robert Rodriguez (starting at 43:25 of the recording) also addressed heat pumps.  He said that the Council has to communicate directly with homeowners and rate payers about what this means.  He claimed that the misinformation campaign listed four different numbers for home electrification and was using hyperbole about the impacts to scare senior citizens.  This appeals to emotions because the opposition is scaring senior citizens.

I want to make a specific point about the Rodriguez claim that four different cost estimates for home electrification means it has to be misinformation.  I showed in my comments that there are two types of heat pumps and two levels of building shell improvements in the Integration Analysis.  As a result, there are four cost estimates in the Draft Scoping Plan.  Furthermore, there are issues related to expectations for those estimates. My reading is that depending on where you live you could have a comfortable home with the cheaper air source heat pump and a basic building shell in some areas of the state like Long Island but in the coldest areas like Lake Placid, you might need to go with the more expensive ground source heat pump and the more expensive deep building shell.  I think the Council should address the following before casting aspersions on those who are raising issues:

  • How are homeowners expected to know what building shell upgrades will be needed to maintain comfort and safety in the winter?
  • Today as long as the structure was compliant with the code at the time of construction it can legally exist and does not have to be upgraded when exchanging hands. What are you going to recommend to drive the changes in building codes necessary to force building shell upgrades? 
  • If homeowners have the option to choose to use supplemental electric resistance heating over the more expensive building shell upgrades will the distribution system be able to handle the extra load when needed the most?
  • In the event of a prolonged winter outage (for example due to an ice storm) what is the plan to prevent people from freezing in the dark?

Paul Shepson (starting at 22:05 of the recording) picked up on the misunderstanding and misinformation label in his comments about job losses. He said that speakers worried about potential loss of jobs were misinformed because they apparently think that job impacts would be immediate.  He said that the transition will be gradual, giving lots of people lots of time to adjust, re-train and so on.    Labeling comments as misinformation and then giving one side of the argument is certainly an unintentional bit of propaganda.

There wasn’t a oft-repeated reference to the appeal to emotions principle during this meeting only because there wasn’t a recent storm.  After every extreme weather event affecting New York over the last two years, the subsequent Climate Action Council meeting made the emotional argument that it was surely a sign of climate Armageddon.  I cannot imagine that the public education program would not also rely on that approach.

Voices of Reason

I was encouraged that there were some rational comments from a couple of the Council members.  Dennis Eisenbach, (starting at 51:09 of the recording) felt it was necessary to speak up because he said he was “starting to get concerned about some of the comments made by some Council members”.  He said that: “It is almost like we are dismissing critical input maybe because we don’t agree with it or doesn’t flow naturally in what we are trying to do with the scoping plan document so that concerns me a little bit.”  He suggested that “If there are issues that are out there brought up by the public or whoever brought them up that kind of like create a misunderstanding or misleading premise let’s develop a frequently asked questions section of our plan”.  He concluded: “I don’t want us to be in a position that we are determining what is valid and what is not valid from the eyes of the individuals trying to provide input because if you want to shut down input this is a good way of doing it”.  I agree with his comments. 

Rose Harvey (starting at 46:52 of the recording) pointed out that information labeled as misleading might not be misinformation.  She said these topics are so complex that it is easy to not understand everything.  She admitted she doesn’t understand everything Council members are saying.  I think that is a key admission.  Some of the more vocal Council members talk a good game but there is no indication that they have the background and experience to have an educated opinion on some of the topics they so confidently talk about. 

Conclusion

I have no doubts whatsoever that the intent of most of those Council members asking for a public information campaign was to sell the plan by only giving one side of the story.  The outreach will appeal to emotions and repeat a limited number of points.  I would not be surprised at all if the outreach manages to criticize anyone who has raised issues.  That is unacceptable.

Instead, I think what is needed is transparency to instill public confidence.  The universal question everyone has is how much is this going to cost me.  For example, relative to home heating with heat pumps, the public information campaign should address the points mentioned above so that homeowners understand the range of potential impacts on costs.  I repeatedly made the point in my Draft Scoping Plan comments that the Final Scoping Plan should 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.  That way, and only that way, will the Climate Action Council avoid misinformation itself, meet its obligation to provide full disclosure of costs and benefits, and avoid unintentional cost propaganda.