Transportation Advisory Panel Enabling Strategies Submitted to Climate Action Council

On July 18, 2019 New York Governor Andrew Cuomo signed the Climate Leadership and Community Protection Act (CLCPA), which establishes targets for decreasing greenhouse gas emissions, increasing renewable electricity production, and improving energy efficiency.  According to a New York State Department of Environmental Conservation (DEC) bulletin dated May 10, 2021, the Advisory Panels to the Climate Action Council have all submitted recommendations for consideration in the Scoping Plan to achieve greenhouse gas (GHG) emissions reductions economy-wide.   My posts describing and commenting on the strategies are all available here. This post addresses the Transportation Advisory Panel enabling strategy recommendations.

I have written extensively on implementation of the CLCPA closely because I believe the solutions proposed will adversely affect reliability and affordability, will have worse impacts on the environment than the purported effects of climate change, and cannot measurably affect global warming when implemented.   I briefly summarized the schedule and implementation CLCPA Summary Implementation Requirements.  I have described the law in general, evaluated its feasibility, estimated costs, described supporting regulationssummarized some of the meetings and complained that its advocates constantly confuse weather and climate in other articles.  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.

Transportation Advisory Panel Emissions

Although the presentations all follow the same format the details differ.  One of the more important components of the presentations is the emissions estimates and they all include a graphic showing historical emissions in 1990, “preliminary draft” emissions for 2018, and their projections for 2030 and 2050.  The 1990 emissions were defined in the Department of Environmental Conservation’s Part 496 regulations but the sectors used in that regulation are not comparable to this advisory panel’s sector.  In the following graph 1990 emissions are 100 million metric tons (MMt) of carbon dioxide equivalent[1] (CO2e) and 2018 preliminary draft emissions are 107 MMt.  Note that as other sectors decrease their emissions the relative percentage of transportation sector emissions to the total increases.


[1] The amount of carbon dioxide by mass that would produce the same global warming impact as the given mass of another greenhouse gas over a specific time frame, as determined by the IPCC, and as provided in Section 496.5 of this Part.

There are two emission reduction targets in the CLCPA: 40% reduction in GHG emissions by 2030 and 85% reduction in GHG Emissions by 2050.   The projected total reductions emission reduction goals for this advisory panel are a 16% reduction from 1990 by 2030 and a reduction of 77% by 2050. 

Transportation Advisory Panel Strategies

The meeting minutes will not be available until the June Climate Action Panel meeting.  According to the presentation, the advisory panel proposed the following enabling strategies:

  • Transition of vehicles/fleets to electric/zero-emission technologies.
  • Enhancing the availability, accessibility, reliability and affordability of public transportation.
  • Aligning and integrating transportation investments into land use/development to mitigate carbon emissions.
  • Implementing market-based strategies to impact travel decisions and finance investments in clean transportation.

The recommendations are available in a slide presentation.  I am not going to critique these strategies individually because it would take far too long.  Instead, I will comment on a few things with an emphasis on inconsistencies and implementation issues. 

The Transition to 100% zero-emission light duty vehicle sales enabling strategy exemplifies what I think is a major disconnect between the transportation planners and the public.  I have attended stakeholder meetings for the Transportation Climate Initiative and listened to the true believers explain that there are so many advantages to electric vehicles that if only the public understood everyone would buy into the technology.  However, even this strategy recognizes that “Lack of consumer awareness/interest and consumer concerns about technology & charging/fueling” are barriers to success.  The ultimate problem with all of the clean energy technologies is that they all only work most of the time.  Most of the time a light-duty electric vehicle might work well for me but several times a year I want to haul a big load in my mini-van several hundred miles and range anxiety is a very real concern.  My wife’s car is a regular sedan and again most of the time an electric vehicle would work.  However, several times a year we drive down to see my son’s family in Brooklyn.  The joke is that is takes four hours to get to the George Washington Bridge, another hour to get to Brooklyn and then an hour to park.  I do not foresee any time in the future when that trip will be a realistic option with an electric vehicle.  I am sure my personal reservations are similar to most people.

Another reservation mentioned in enabling solution is the “Potentially high cost of supporting charging and fueling infrastructure and Zero Emission Vehicle incentives”.  Under cost and funding considerations the strategy notes that “Nearly $1 billion in ratepayer and NYPA funding is already committed for EV charging station installations”.  I believe that this $1 billion charge to the ratepayer will be buried in bills so there is no direct accountability to this initiative.  While I do see electric charging stations around town, I don’t see a lot of them so this funding is no where near what is necessary to provide charging support in public spaces.  Moreover, what about the need to charge at home?  While the cost for a simple charger is not that great, a faster charger, which I understand is needed to completely charge a depleted battery, is much more expensive. 

The final reservation mentioned is that “Unmanaged charging could have significant costs for electric grid operators/ratepayers”.   I live in a development that is on the order of 60 years old.  It is very rare that there is a house with only one car and there are many homes with adult children living at home that have more.  The personal charging infrastructure is going to be a challenge and that much additional load, and don’t forget they want to electrify home heating too, is probably going to require upgrades to the local distribution system.    Again, it may work most of the time but when homeowners really need heat are they going to be able to charge their cars too.  Finally, the challenge for charging in a housing subdivision is small relative to charging at apartment buildings and other public spaces and that challenge is small relative to providing chargers for people who have to park on the street in cities.

Ronald Stein recently described California warning signs that agree with some of  my anecdotes about electric vehicles and highlight other issues:

One of the key components of these plans is anticipated benefits and impacts to disadvantaged communities.  For this mitigation strategy the strategy states:

Enhanced incentives for residents of disadvantaged communities are essential for faster ZEV adoption in disadvantaged communities. Incentives that support used ZEV purchases and EV charging at multifamily buildings can be especially effective at increasing ZEV adoption among underserved populations. Local ownership of EV charging stations and workforce development can support economic opportunities in disadvantaged communities.

I think this is another major disconnect between the members of the advisory panel and reality.  Many people in disadvantaged communities cannot afford a new vehicle whatever the incentive.  Another electric vehicle concern is the market for used cars relative to battery life.  The common perception is that replacing the batteries is a major cost not necessary in a conventional used car.  It is not clear how the CLCPA can subsidize new vehicle purchases, used vehicle purchases, and public EV charging support in disadvantaged communities and keep the option of personal mobility available.

There is another enabling mitigation strategy: “Transition to zero emission medium/heavy duty vehicles and non-road vehicles”.  The summary claims that the ease of implementation and cost is similar for this sector has the same emissions impact, ease of implementation, and cost as for light-duty vehicles.  I disagree with all three comparisons.  Diesel vehicle emissions are a primary cause of inhalable particulates in urban areas so eliminating those emissions has more value than a comparison only to GHG emissions which could be the same for light-duty vehicles and this sector.  Similar ease of implementation is absurd.  There are electric cars that are at least arguably competitive to regular cars.  There isn’t any similar level of technological availability for heavy duty trucks and given the limits of battery technology it is a very heavy lift to assume that a zero-emission technology will ever enable the same use of trucks as today.  If you don’t have the technology, how can you possibly project costs?  Furthermore, charging a fleet of medium or heavy-duty trucks is going to require a lot of energy at freight terminals and service centers so upgrades to the distribution system, likely including new substations, will be required at a significant cost.

From a personal standpoint the transportation initiative does not mention recreational vehicles.  Since my retirement I have traveled over 60,000 miles, visited 40 states and been on the road about 20% of the time with a motor coach.  I don’t see how that life-style will be possible in the net-zero world.  Anyone who has driven I-95 in the winter has noticed a steady stream of campers headed south.  Based on my experience many travel over 300 miles per day which I expect to be the limit of the electronic technology.  The batteries necessary for that operating range will undoubtedly reduce storage space which will not be popular.  Finally, there are very few campgrounds that have any apparent surplus of electricity.  Upgrading campgrounds is another hidden cost.

Improvements to public transportation are a big component of the enabling strategies: 

Identify implementable strategies to significantly enhance the availability; accessibility; reliability; and affordability of public transportation services with an emphasis on unserved/underserved communities.

A major problem with mass transit in all but the largest cities is that it is inconvenient.  Outside of New York City I believe that using public transit basically doubles travel time.  In the early 1900’s there was an extensive interurban trolley system in Upstate New York that basically met the proposed vision for the future.  In Syracuse you could go to Utica, Rochester, and Oswego on those systems.  They all failed by the 1930’s because even though folks had to drive on dirt roads with little heat in the winter and no cooling in the summer it was more convenient than taking a ride on a trolley.  To dream that people will willingly give up that convenience when many have remote car starters is magical thinking.

The enabling strategy becomes even more detached from reality when they include plans for transit-oriented development which is “the creation of compact, walkable, pedestrian-oriented, mixed-use communities centered around high-quality train systems”.  There may be some locations outside of New York City where this might work because high quality train, or rapid transit buses for that matter, can haul commuters to the city where there is a dense network of transit routes available that can take people to a variety of jobs.  Upstate cities have no similar concentration of transit-friendly jobs in the center cities so how can anyone expect that people would want to live in a community that actively discourages ownership and use of a personal vehicle that does not have easy access to work.

Ultimately, the goal of the public transit strategies is to reduce the need for personal automobiles.  There is a fundamental problem though because population density puts limits on transit system success.  If there aren’t enough people living along the transit service then revenues will be insufficient to make them viable.  In order to address there is a strategy to expand biking, walking, carpooling, ride-sharing, and micro-transit opportunities and another for automated vehicles for smart mobility.   The idea is that if there were a convenient option people would be willing to consider transferring from, for example, an express bus to an automated vehicle for locations too far to walk from the main stop.  Transferring between subway lines in New York City is only viable because of the frequency of service.  Scaling that concept down to upstate cities with less dense ridership is unlikely to succeed. 

Of course, the transit systems will have to be converted to zero-emission fleets too.  According to a friend in the business new diesel buses cost ~$500,00, a new compressed natural gas bus costs ~$550,000, and a new electric bus costs ~$1,000,000.  That does not include the cost of infrastructure which, especially for bus electrification, is a significant transition cost.  Furthermore, the enabling initiative suggests making public transit “more attractive, accessible and user-friendly” but adding options to provide those services can run another $60,000 per bus.

Most of the other advisory panels avoided much detail on funding mechanisms and just suggested that some form of government funding would be necessary.  This panel did address potential mechanisms but did not estimate costs.  The strategy for “financing and market-based policies” includes nine potential policies: facilitating private financing, cap & invest or carbon pricing, clean fuel standards, electrification freebates, curb pricing, congestion/variable/demand parking pricing, mileage-based user fees, tax increment financing/special assessment districts, and registration fees.  Note that this spring the Climate and Community Investment Act was proposed to, in large part, provide a funding mechanism for the CLCPA.  However, when asked about the potential to increase gasoline prices by 55 cents per gallon, the Governor Cuomo said: “You can’t do it that way. I understand the concept, and the concept, it makes sense. But how does it work? What’s the economic impact? You’d have to ask all those questions.”   I look forward to the scoping plan’s assessment of CLCPA costs because I don’t believe there is any way that the costs will be as low as 55 cents per gallon for the transportation enabling strategies.  When combined with all the other advisory panel strategies, costs will be extraordinary.

Conclusion

I have three concerns with the transportation enabling strategies: feasibility, affordability and reliability. 

According to preliminary data, the transportation sector was the second largest source of emissions in 2018.  The projected total emission reduction goals for this advisory panel are a 16% reduction from 1990 by 2030 compared to the CLCPA target of 40% and a reduction of 77% by 2050 compared to the goal of 85%.  I can only conclude that the failure to meet these goals means that the CLCPA targets are not feasible particularly because I suspect that the enabling initiatives over-estimate emission reduction effectiveness.

As noted above the costs were not included in the enabling strategies but considering the scope, they are sure to be large.  On May 24 and 25 2021 a European summit met to discuss their net-zero plans and observers expect that that they had to concede that these plans will be very expensive.  I expect the same affordability issues in New York.

The ultimate problem is that the proposed “solutions” only work most of the time and society expects energy options that work all the time.  One of the initiatives proposes to “Expand the availability of low carbon transportation modes (biking, walking, carpooling, ride-sharing, micro-transit) statewide” which is an example of the personal impacts of “it will work most of the time” thinking.  Biking and walking several months of the year is not only inconvenient but also dangerous whenever roads are covered with snow and ice.  Electric vehicles will work when the power is available but what happens when there is an ice storm blackout?  No heat and no way out are a dangerous combination.

New York Independent System Operator and the Climate Leadership and Community Protection Act

On July 18, 2019 New York Governor Andrew Cuomo signed the Climate Leadership and Community Protection Act (CLCPA), which establishes targets for decreasing greenhouse gas emissions, increasing renewable electricity production, and improving energy efficiency.  The Ney York Independent System Operator (NYISO) is the “organization responsible for managing New York’s electric grid and its competitive wholesale electric marketplace”.  This post addresses the relationship between the CLCPA and NYISO.

I have written extensively on implementation of the CLCPA closely because its implementation affects my future as a New Yorker.  I briefly summarized the schedule and implementation CLCPA Summary Implementation Requirements.  I have described the law in general, described the enabling strategies, evaluated its feasibility, estimated costs, described supporting regulationssummarized some of the meetings and complained that its advocates constantly confuse weather and climate in other articles.  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.

Background

The NYISO Frequently Asked Questions webpage explains how the organization originated.  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.  The NYPP “balanced electricity supply and demand, maintained transmission voltage, monitored system contingencies, managed operating reserves, and dispatched generation”. 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. “At the same time, the New York State Public Service Commission (PSC) established retail electric competition to allow customers to choose their electric supplier. The PSC supported the formation of competitive wholesale markets as the basis of retail choice, and approved restructuring plans by which utilities divested most of their power plants to competitive generation companies.”  In 1999, the NYISO was established to replace the NYPP.

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 market electricity is supplied by multiple types of agreements between the suppliers and the NYISO.  Some of the power is contracted by purchase power agreement contracts, some by day-ahead auctions, and the rest by real-time auctions that cover any additional power needed.  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 CLCPA. 

There are a few other relevant aspects in the NYISO description:

The NYISO is a not-for-profit, independent company unaffiliated with any state or federal agency or energy company. The NYISO is led by an independent Board of Directors. The NYISO’s federally-approved tariffs contain strict requirements for our Board of Directors and all employees to have no financial relationship with any of the companies that participate in our wholesale energy markets. The NYISO is dedicated to transparency in how we operate, the information we provide, and our role as an impartial system operator, planner, and broker of New York’s wholesale electricity markets.

The NYISO is accountable to both federal and state regulatory bodies and maintains compliance with nearly 1,000 reliability requirements. The NYISO’s independent Board of Directors collaborates with our stakeholders via a robust shared-governance process that facilitates input from interested stakeholders. The establishment of the NYISO created a system of shared governance that provides all market participants — from utility companies to electric generators — a voice in the operation and evolution of the marketplace.

Under the NYISO’s transparent, inclusive process, representatives from market participants have voting power to exercise responsibilities such as preparing the NYISO’s annual budget, reviewing and recommending candidates for Board vacancies, developing and adopting technical guidelines for operation of the bulk power system, and market design and system planning. NYISO stakeholders share responsibility with the NYISO Board to approve proposed changes to the NYISO’s governing documents, including its federally approved tariffs.

The NYISO’s description of their process and the very name suggest that they are independent of New York politics but that is not the case with the current administration.  In the following I will explain why I think that the NYISO is pulling its punches vis-à-vis the feasibility of the CLCPA.

NYISO and the Cuomo Administration

I am not an admirer of Governor Cuomo because my impression is that his administration has always been about his best interests.  Whenever any organization has disagreed with Cuomo’s energy agenda the response has been bluster and threats.  For example, when National Grid’s plan for natural gas supply in New York City contradicted Cuomo’s agenda, he threatened to revoke the operating license for National Grid if they did not comply with his plans.  Another example, is NRG Energy’s Dunkirk power plant which was deemed uneconomic and scheduled for closure.  For some political reason, Cuomo announced an agreement to repower the plant with natural gas.  In a de-regulated market making a grant to one facility to continue operations is sure to upset competitors and a lawsuit was filed.  In addition, certain rules have to be followed that include fee requirements and NRG decided to not pursue re-powering.  Cuomo’s response was to seek a PSC probe of the business decision.

This overt insistence on toeing the administration’s political agenda extends to all the agencies under his thumb.   The Department of Public Service (DPS) and Public Service Commission are supposed to be independent however this is not the case.  In the summer of 2019 a group of retired Department of Public Service employees submitted a letter that stated “Until the current administration, Governors have generally respected the plain language of the Public Service Law (PSL), which … safeguards the mission of the DPS to serve not political interests but the public interest.” The letter signed by fifteen retired department workers states: “Governor Andrew Cuomo, however, has not done so.”

Unfortunately, the NYISO is not immune to the Governor’s tactics. In a filing to the Public Service Commission, the NYISO noted that in order to meet Cuomo’s Clean Energy Standard, a predecessor regulation to the CLCPA, New York would have to install over 1,000 new miles of bulk transmission lines at great cost and effort which exposed one of the short-comings of the Governor’s clean energy agenda.  In response, Cuomo’s energy czar, Richard Kauffman, accused NYISO Director Brad Jones and his NYISO report as “misleading, incomplete, and grossly inaccurate…revealing an alarming lack of developed analysis into the imperative to address climate change…” Kauffman’s letter accused Jones of protecting fossil fuel generators and said that he was “dismayed by [Jones’] public comments.  

In this political climate it is not surprising that rather than standing up to the bully, the “independent” NYISO caved, Jones left, and was replaced by Rich Dewey.  Now the NYISO reports carefully word every document so as to not invoke the wrath of Cuomo’s bullies. 

NYISO Raison D’être

There is another aspect of the NYISO’s operations that colors their responses.  It is not surprising that the NYISO completely endorses the idea that wholesale electricity markets have the ability to solve any problems because that is the reason for their existence.  Unfortunately, I think some of their faith in market mechanisms is unwarranted.

I am not an expert on market design but I fear we are heading towards an energy crisis.  In a regulated market the Public Service Commission (PSC) tells the vertically integrated electric utilities to meet a specific mandate, the utilities develop a response, the PSC oversees their responses relative to reliability and affordability, and the necessary infrastructure gets built.  In New York’s de-regulated market, planners at the NYISO and various state agencies do the planning and then the NYISO and PSC develop “innovative market rules necessary to meet the objectives of the CLCPA” that they hope will engender market participants to build the necessary infrastructure. 

There are tremendous technological challenges converting from the current electric system to one dependent upon renewable energy sources and I am convinced that the only way unexpected kinks will be worked out is by trial and error.  The Texas electricity market design did not work well in February and I have no reason to expect that some new wrinkle introduced by relying on intermittent and diffuse renewable energy will only be resolved after the problem occurs. Robert Bradley recently explanation of what happened during the big freeze relative to the Texas electricity market and the difference between managed markets like New York’s wholesale electricity market and a “free market” supports my concern.

In addition, the problem may occur because the NYISO identifies a problem that the politicians who are running New York energy policy decide to ignore.  Of course, when it occurs the blame will be place on the NYISO.  In this regard Donn Dears book “The Looming Energy Crisis” provides a detailed description of potential problems that are a challenge to overcome and might require imposition of politically unpopular policies.  In the current political environment these issues are more likely than not.

Finally, I want to give an example where the market did not produce the obvious environmental solution.  New York State energy and environmental policy is more about optics than facts.  Nowhere is this more apparent than the recent spate of opinion pieces, reports, and even policy proposals related to peaking power plants.  In brief there are old simple cycle turbines in New York City that were built to provide reliable power during peak load periods.  However, there are old, inefficient and much dirtier than today’s technology.  In my opinion the continued operation of the old simple cycle turbines in New York City is the result of New York’s de-regulated market place.  I am absolutely sure that in a regulated environment the responsible utility would have made a case to the Department of Public Service that replacement with cleaner, more efficient generation was needed, the Department would have agreed,  and, after it was approved, the utility would have been guaranteed a reasonable return on their investment so the turbines would have been replaced.  However, in the de-regulated market there wasn’t a strong enough financial incentive to replace the old units.  Before I retired in 2010, I worked on two separate permit applications for new, efficient, and cleaner replacement power for one set of the old combustion turbines.  In both instances the permits were approved but the replacements were never built, apparently because the company decided that the business case was not strong enough to warrant the investment.  The fact is that sometimes the market signals are too weak to provide the desired result.

Conclusion

The point of this post is to document the importance of the NYISO but to also point out that their policies and recommendations are necessarily colored by their belief that markets are a viable solution to the challenges of the CLCPA energy transition and by the political climate of New York.  The NYISO has done a good job analyzing the challenges of the energy transition.  Unfortunately, many members of the CLCPA advisory panels and the Climate Action Council don’t understand, don’t want to understand, or choose to ignore the warnings in those analyses.  In my opinion, there are enough technical challenges in the transition that maintaining reliability will be a problem but the added challenge of designing some market mechanism to get the market to provide the resources necessary all but assures that reliability will become an issue. 

Finally, I sympathize with the NYISO position.  All their work not only has to fully explain the problems they identify but the wording has to pass a political optics text.  This means that all their reports have to toe the existential threat of climate change narrative without any suggestion that the potential risks to reliability, affordability, and environmental impacts of the proposed solutions far out-weigh the alleged impacts of climate change.  It is similar to the symbiotic relationship between the Egyptian plover and crocodile.  NYISO is performing a service to the state but you never know if the Cuomo crocodile is going to snap.

Energy-Intensive and Trade-Exposed Industries Advisory Panel Enabling Strategies Submitted to Climate Action Council

On July 18, 2019 New York Governor Andrew Cuomo signed the Climate Leadership and Community Protection Act (CLCPA), which establishes targets for decreasing greenhouse gas emissions, increasing renewable electricity production, and improving energy efficiency.  According to a New York State Department of Environmental Conservation (DEC) bulletin dated May 10, 2021, the Advisory Panels to the Climate Action Council have all submitted recommendations for consideration in the Scoping Plan to achieve greenhouse gas (GHG) emissions reductions economy-wide.   My posts describing and commenting on the strategies are all available here. This post briefly addresses the Energy-Intensive and Trade-Exposed Industries (EITE) Advisory Panel enabling strategy recommendations more for completeness than anything else.  Emissions are small, choices are few, and there is not much to see here.

I have written extensively on implementation of the CLCPA closely because its implementation affects my future as a New Yorker.  I briefly summarized the schedule and implementation CLCPA Summary Implementation Requirements.  I have described the law in general, evaluated its feasibility, estimated costs, described supporting regulationssummarized some of the meetings and complained that its advocates constantly confuse weather and climate in other articles.  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.

Energy-Intensive and Trade-Exposed Industries Advisory Panel Emissions

Although the presentations all follow the same format the details differ.  One of the more important components of the presentations is the emissions estimates and they all include a graphic showing historical emissions in 1990, “preliminary draft” emissions for 2018, and their projections for 2030 and 2050. 

The 1990 emissions were defined in the Department of Environmental Conservation’s Part 496 regulations but the sectors used in that regulation are not comparable to this advisory panel’s sector.  In the following graph 1990 emissions are 33 million metric tons (MMt) of carbon dioxide equivalent[1] (CO2e) and 2018 preliminary draft emissions are 16 MMt.  Note the breakdown of the emissions by process, imported fossil fuels, and fuel combustions with the explanation at the bottom of the graph.  The inclusion of imported fossil fuels makes comparison of these data with other emissions estimates impossible. 

The projections for 2030 and 2050 show reductions that exceed the CLCPA targets.  In 2030 the projected emissions are 55% less than 1990 as opposed to a target of 40% and the 2050 emissions are 91% compared to the target of 85%.  In a previous post I noted that industrial energy use was 47% reduced and that reflected the loss of New York industry rather than any improvement in GHG emissions efficiency in operations. 


[1] The amount of carbon dioxide by mass that would produce the same global warming impact as the given mass of another greenhouse gas over a specific time frame, as determined by the IPCC, and as provided in Section 496.5 of this Part.

EITE Strategies

According to the meeting minutes, the advisory panel proposed the following enabling strategies:

  • Industrial sectors within the Advisory Panel scope total a small share (less than 4%) of the State emissions;
  • The “heterogeneous” nature of industry may result in a higher cost per ton of emissions reduced;
  • Energy-Intensive and Trade-Exposed industries are likely to represent a high share of industrial sector emissions. These industries are highly sensitive to increased energy costs, that often cannot be passed along, which could cause them to leave the State, resulting in leakage;
  • Emissions will decline with decarbonization of the Power Generation sector; near-term opportunities will likely focus on energy efficiency, while most deep carbonization opportunities will occur further into the future as new technologies become more viable.

A brief translation of these strategies.  This is a small and declining sector.  The “heterogeneous” nature of industry refers to the fact that there are many different sources so economy of scale is not going to reduce costs.  Clearly the unilateral transition off fossil fuels will increase relative energy costs and industries will have to leave to survive.  The final bullet basically says this sector needs a magical solution to produce emission reductions and remain viable within the state.

The recommendations are available in a slide presentation.  I am not going to critique these strategies individually there is so little to address.

The summary slide describing the strategies states:

Mitigation strategies: Directly reduce emissions and contribute to the achievement of the GHG emission limits or carbon sequestration needed to achieve net zero, where applicable:

1.Provide financial incentives and technical assistance for the decarbonization of EITE sectors

2.Create procurement incentives for business to capitalize on low-carbon economic opportunities

Enabling initiatives: No direct emissions benefit, but enable or magnify the mitigation strategies, enhance climate justice, or just transition. (Examples: outreach, education, and awareness; capacity building; workforce development; and research and development.)

3.Identify and support technological innovation to enable deep industrial decarbonization

4.Workforce development training to support Energy-Intensive and Trade Exposed (EITE) industries

5.Increase the available data on industrial GHG emissions to help prioritize efforts and monitor progress

6.Provide economic incentives to grow the green economy

In brief, the mitigation strategies consist of subsidies to provide GHG reductions and incentives, aka further subsidies, for companies to join the grifters already lined up to save the world as long as someone else is paying for it.  If there is an existential climate crisis why are there any initiatives with no emission reduction benefits?

Conclusion

This sector is a relatively small actor relative to total New York GHG emissions.  Reductions in the sector have exceeded the CLCPA targets but only because the sector has become much smaller.

It seems pretty obvious that this advisory panel was a political ploy to placate the industrial sector.  Unfortunately, there is not much that can be done to reduce emissions significantly or prevent the remaining industries from fleeing the state out of necessity.

Waste Advisory Panel Enabling Strategies Submitted to Climate Action Council

On July 18, 2019 New York Governor Andrew Cuomo signed the Climate Leadership and Community Protection Act (CLCPA), which establishes targets for decreasing greenhouse gas emissions, increasing renewable electricity production, and improving energy efficiency.  According to a New York State Department of Environmental Conservation (DEC) bulletin dated May 10, 2021, the Advisory Panels to the Climate Action Council have all submitted recommendations for consideration in the Scoping Plan to achieve greenhouse gas (GHG) emissions reductions economy-wide.   My posts describing and commenting on the strategies are all available here. This post addresses the Waste Advisory Panel enabling strategy recommendations.

I have written extensively on implementation of the CLCPA closely because its implementation affects my future as a New Yorker.  I briefly summarized the schedule and implementation CLCPA Summary Implementation Requirements.  I have described the law in general, evaluated its feasibility, estimated costs, described supporting regulationssummarized some of the meetings and complained that its advocates constantly confuse weather and climate in other articles.  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.

Waste Emissions

Although the presentations all follow the same format the details differ.  One of the more important components of the presentations is the emissions estimates and they all include a graphic showing historical emissions in 1990, “preliminary draft” emissions for 2018, and their projections for 2030 and 2050.  Most of the presentations added numbers to the slides so that it was not necessary to try to estimate the numbers.  Such is not the case with the Waste panel presentation. 

Moreover, there are problems with the data presented..  The 1990 emissions were defined in the Department of Environmental Conservation’s Part 496 regulations.  According to Part 496 the 1990 Waste greenhouse gas emissions in 1990 by IPCC sector in Global Warming Potential over a twenty-year time frame (GWP20) totaled 52.88 million metric tons (MMt) of carbon dioxide equivalent[1] (CO2e) broken down as 3.03 MMt of CO2, 49.35 MMt of CH4 and 0.5 MMt of N2O. However, in the following graph the total is well above half the range between 50 and 60.  Assuming that the wastewater component is not included in Part 496 brings the numbers close.  The bigger problem is the claim that waste is 25% of the total in 1990 and 16% of the total in 2018.  I guess the waste emissions in 1990 are 57 MMt and I know the 1990 Part 496 total emissions are 409 so that works out to 14%.  I guess the waste emissions in 2018 are 55 MMt and I estimated that the sum of emissions from all the sides in the advisory panel presentations total 377 MMt and that works out to 15% for the waste % of total NY emissions.  It could be a simple typo but in the absence of numbers in the graphic, readers do not know.


There are two emission reduction targets in the CLCPA: 40% reduction in GHG emissions by 2030 and 85% reduction in GHG Emissions by 2050.   The projected total reductions emission reduction goals for the Waste Advisory Panel are a 17.6% reduction from 1990 by 2030 and a reduction of 70.5% by 2050. 

Waste Strategies

According to the meeting minutes, the advisory panel proposed the following enabling strategies:

  • Reducing methane generating wastes from disposal in landfills and combustors;
  • Identifying and reducing fugitive emissions at waste and water resource recovery facilities;
  • Reducing the need for new consumer products;
  • Ensuring proper end-of-life materials management, with a focus on solid waste management hierarchy;
  • Supporting domestic recycling facilities and markets for recovered resources, by emphasizing the highest and best use for recycling end products; and
  • No promotion of new fossil fuel energy infrastructure.

The recommendations are available in a slide presentation.  I am not going to critique these strategies individually because it would take far too long.  Instead, I will comment on a few things with an emphasis on inconsistencies and implementation issues. 

Clearly landfills have to be the target for reductions because it is the largest source.  The plan is to achieve the “aggressive goals of Beyond Waste, the New York State Solid Waste Management Plan (e.g., 90% paper recycling and 65% food waste diversion by 2030)”.  This program was adopted 12/27/10 but beyond mentioning that meeting the goals was necessary there was no further mention of the plan in the presentation or recommendations.  Under the “Ease of implementation” category for Initiative #1: Organic Waste Reduction and Recycling, there is the following description: “Easy; The technologies exist, the challenges are financial (e.g., investment & end markets), behavioral, and logistical (e.g., siting, etc.)”.  During the question-and-answer period of the presentation Anne Reynolds asked about the status of the goals of the over ten year old Beyond Waste Program as a means of assessing how difficult achievement of the recommendations presented today might be and Ms. Rowland noted that “the State is roughly one-third of the way to 90% on the paper recycling and traditional recyclables, with significant work left to do on organics, as only about 2-3% is diverted.”  In my opinion, the financial, behavioral, and logistical challenges defined as “easy” are not.  Note that many of the recommended initiatives require legislative and regulatory action to make these “easy” changes.

There are folks involved with this process that have convinced themselves, contrary to the text of the law, that the zero-emissions mandate refers to all emissions and not just GHG emissions.  I suspect that they are disappointed that the panel projects no reduction projected from existing combustor facilities will be needed to handle municipal solid waste remaining after reduction, reuse, and recycling strategies.

The advisory panel process and the Climate Action Council meetings provide a window into the hopes and dreams of the segment of the population that is driving the concept that the existential crisis of climate change can be solved simply by ending fossil fuel use as quickly as possible.  The “no promotion of new fossil fuel energy infrastructure strategy” is the result of their concerns. Many of the most vocal people in this process are as passionate about this cause as they are clueless about the complexity of the energy systems and tradeoffs of their purported solutions. Renewable natural gas is a very good example of the resulting problem. 

According to EPA:

Renewable natural gas is a term used to describe biogas that has been upgraded for use in place of fossil natural gas. The biogas used to produce RNG comes from a variety of sources, including municipal solid waste landfills, digesters at water resource recovery facilities (wastewater treatment plants), livestock farms, food production facilities and organic waste management operations.

The ultimate problem replacing fossil fuels with renewable wind and solar energy is providing power during periods when both resources are near zero.  In their presentation to the Power Generation Advisory Panel on September 16, 2020 E3 included the following slide that notes that during these periods “firm, zero emission resources, such as bioenergy, synthesized fuels such as hydrogen, hydropower, carbon capture and sequestration, and nuclear generation could provide a number of benefits”.  In my opinion, those benefits include keeping the lights on.

In light of the critical need for these firm, zero-emissions resources and the fact that the methane emissions from municipal solid waste landfills, digesters at water resource recovery facilities, livestock farms, food production facilities and organic waste management operations are a major percentage of the total emissions, it only seems logical to address both problems by developing those resources.  However, there are passionate ideologues that don’t agree.  The meeting minutes note “concern regarding renewable natural gas, suggesting that there is a limited opportunity for it to contribute to Climate Act goals and believes that efforts in this area benefit the source without contributing additional environmental benefits”. Another member “expressed his concerns about how to move ahead with biogas if it is combusted as this would clearly increase net co-pollutants locally, and suggested the Council consider applications for biogas that would not be combusted (such as fuel cell technology at wastewater treatment plants)”.   Nonetheless the panel’s enabling initiatives included biogas recovery and agency staff argued for its use. 

Most of the other strategies proposed identifying leaks and eliminating them.  As part of New York’s irrational war on methane the new leak detection technology that has identified many new sources of methane is considered a rationale for eliminating the use of natural gas instead of an opportunity to make the source of energy that enabled most of the observed GHG reductions since 1990 even better.  Because the residence time of methane is on the order of 12 years eliminating leaks has much value.

There is another aspect to the leak issue related to the cluelessness of some panel members.  One of the other panels has a strategy that includes a public relations campaign to remove the label “natural” from natural gas because they allege that the name was chosen for advertising purposes.  They presume that if the public only understood it was not natural then they would not be so likely to use it.  The problem with that of course is that it is called natural gas because it is a naturally occurring gas.  Wherever a geologic formation that contains natural gas is exposed to the air, natural gas can be released to the atmosphere.  For example, western New York’s Eternal Flame Falls has a vent that seeps natural gas, and someone, sometime lit it off.  It remains to be seen if this natural vent will be sealed off in the name of climate change mitigation but the bigger issue is what to do about all the other sources of naturally-occurring methane.         

Conclusion

There are consistency issues with some of the numbers presented that I could not reconcile.  Using the numbers provided, this sector generates under 15% of the total New York GHG emissions but it is notable that the strategies are only expected to reduce emissions 18% in 2030 as opposed to the target of 40% and only 71% in 2050 as opposed to the target of 85%.  Clearly, this panel recognizes that there are limits to what can be achieved even though the results are disappointing.

Even though the enabling strategies do not meet the CLCPA targets, the results of the 2010 Beyond Waste, the New York State Solid Waste Management Plan suggest that even these strategies may be too optimistic “as only about 2-3%” of food waste is diverted as opposed to the 65% goal.  The concession that no reduction is projected from existing combustor facilities needed to handle municipal solid waste remaining after reduction, reuse, and recycling strategies also suggests these are aspirational strategies.

The ideologues involved in this process hinder rational mitigation approaches.  Collecting and using methane wherever possible not only addresses an emissions problem but also helps address a major concern related to reliability.  It is scary that irrational concerns about using renewable natural gas were not cut off as untenable at the outset.  Another example is not recognizing that natural gas leak detection technology advances are an opportunity to reduce emissions from the resource that has provided most of the recent co-pollutant and CO2 emission reductions rather than a reason to eliminate its use.

[1] The amount of carbon dioxide by mass that would produce the same global warming impact as the given mass of another greenhouse gas over a specific time frame, as determined by the IPCC, and as provided in Section 496.5 of this Part.

Agriculture and Forestry Advisory Panel Enabling Strategies Submitted to Climate Action Council

On July 18, 2019 New York Governor Andrew Cuomo signed the Climate Leadership and Community Protection Act (CLCPA), which establishes targets for decreasing greenhouse gas emissions, increasing renewable electricity production, and improving energy efficiency.  According to a New York State Department of Environmental Conservation (DEC) bulletin dated May 10, 2021, the Advisory Panels to the Climate Action Council have all submitted recommendations for consideration in the Scoping Plan to achieve greenhouse gas (GHG) emissions reductions economy-wide.   My posts describing and commenting on the strategies are all available here. This post addresses the Agriculture and Forestry strategy recommendations.

I have written extensively on implementation of the CLCPA closely because its implementation affects my future as a New Yorker.  In this post I will briefly summarize the schedule and implementation components but I provide more details at CLCPA Summary Implementation Requirements.  I have described the law in general, evaluated its feasibility, estimated costs, described supporting regulations,  summarized some of the meetings and complained that its advocates constantly confuse weather and climate.  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.

Agriculture, Forestry and Other Land Use Emissions

According to Part 496 the 1990 Agriculture, Forestry and Other Land Use (AFOLU) greenhouse gas emissions in 1990 by IPCC in GWP20 totaled 17.13 million metric tons (MMt) of CO2e broken down as 0.05 MMt of CO2, 13.07 MMt of CH4 and 4.01 MMt of N2O. According to the presentation, in the 2018 preliminary draft emissions inventory there were a total of 24 MMt of CO2e.  In 1990 emissions from this sector were 4.2% of the state total and in 2018 they were 6.4%.

There are two emission reduction targets in the CLCPA: 40% reduction in GHG emissions by 2030 and 85% reduction in GHG Emissions by 2050.   The emission reduction goals for this advisory panel are a 15% reduction from current levels by 2030 and a reduction of 30% which is a return to 1990 levels by 2050.  There is an additional ambition of a 45% reduction by 2050.  Unfortunately, the panel estimates that emissions will be 20 MMt of CO2e in 2030 an increase of 3 MMt over 1990 emissions.  In 2050 two emission estimates are given that range from no change relative to 1990 to a 4 MMt of CO2e reduction in 2050 that is only a 24% decrease.

Note that the 85% reduction by 2050 target includes a goal to go net-zero.  In order to meet that goal this sector is supposed to increase carbon sequestration from the current level of 33 MMt of CO2e to 60 MMt of CO2e.  Included in the sequestration goal is for no net loss of forests from 1990 levels.  The pa

Agriculture and Forestry Strategies

According to the meeting minutes, the advisory panel proposed the following enabling strategies:

  • Agriculture: Agricultural Environmental Management (AEM) planning for climate mitigation/adaptation (“carbon farm planning”), benchmarking and monitoring of GHG mitigation, carbon sequestration and adaptation performance across applicable management areas of farms;
  • Avoided Land Conversion, bolstering local agricultural economies, and enhanced local       government planning for land conversion;
  • Forest Management: expanding funding for peer-reviewed climate and forest carbon research, developing and supporting workforce development and training programs, and developing forest- based outreach, education and marketing techniques;
  • Bioeconomy: expanding markets for sustainably-harvested durable wood products; sustainable biomass feedstock action plan for 2050 hard-to-decarbonize products; increasing market access for New York low-carbon products that achieve the climate and social justice goals of the Climate Act; financial and technical assistance for low-carbon product development; bio-based products research, development and demonstration; and net negative carbon dioxide removal.

I am not going to critique these strategies individually because it would take far too long.  Instead, I will comment on a few things with an emphasis on inconsistencies and implementation issues.  I made comments on the draft strategies and will note whether the panel addressed them.

One of the reasons that I don’t have time to critique the strategies is because the use of jargon would take so long to research.  For example, “carbon farm planning” is a new concept to me and the strategy recommendations did not explain what this means in this context.  An internet search finds this definition: “Carbon farming combines cutting-edge agricultural practices with the tools of ecological design to build healthy soil and profitable farms and ranches, as well as improving the rate at which carbon dioxide is removed from the atmosphere and converted to plant material and/or soil organic matter.”  Frankly trying to unravel what that means in the context of the CLCPA does not appeal.

The alternative manure management strategy is a mystery to me because § 75-0109, (2) (b) states “Include legally enforceable emissions limits, performance standards, or measures or other requirements to control emissions from greenhouse gas emission sources, with the exception of agricultural emissions from livestock.”  What is the point of alternative manure management if livestock emissions are exempt?  I made the comment and because there is no response to comments document, I have no idea what their rationale was to do this anyway. 

I agree that the enabling strategies of avoided forest conversion and avoided agricultural land conversion are important and should be included.  However, the CLCPA electric sector targets are going to require enormous amounts of solar and wind energy development.  I commented that this factor has to be addressed and it was not mentioned as an issue.  If there was a response to comments document then they would have had to explain why this was ignored.

Conclusion

This sector is a relatively small actor relative to total New York GHG emissions but it is notable that the strategies are expected to actually increase 2030 emissions from the 1990 baseline rather than reduce emissions consistent with the CLCPA target of a 40% reduction by 2030.  Clearly, this panel recognizes that there are limits to what can be achieved even though the results are disappointing.

There is a big flaw in two of the enabling strategies.  There is no recognition or plan to address the extraordinary buildout of wind generation projected by the Analysis Group – 35,200 MW compared to 5,905 MW in the last DPS impact statement that evaluated wind energy cumulative impacts. I extrapolated results from several projects to estimate the potential cumulative impacts and found that if all the wind projects are built on agricultural land, then between 12% and 56% of the agricultural lands will be covered with wind turbines.  Of course, it is more likely that wind turbines will be sited on ridge lines but that will affect forest land use.  Nonetheless that study also projected 39,262 MW of utility scale solar that will have to go somewhere.  The enabling strategies inexplicably do not address these potential impacts in their enabling strategies for avoided forest conversion and avoided agricultural land conversion.

Climate Leadership and Community Protection Act Advisory Panel GHG Emissions

On July 18, 2019 New York Governor Andrew Cuomo signed the Climate Leadership and Community Protection Act (CLCPA), which establishes targets for decreasing greenhouse gas emissions, increasing renewable electricity production, and improving energy efficiency.  According to a New York State Department of Environmental Conservation (DEC) bulletin dated May 10, 2021, the Advisory Panels to the Climate Action Council have all submitted recommendations for consideration in the Scoping Plan to achieve greenhouse gas (GHG) emissions reductions economy-wide.   Until this point, the State has not formally released its estimates of current GHG emissions but the strategies mention the GHG emissions for the baseline in 1990 and the most recent year, 2018, so we can estimate where New York stands.

I have written extensively on implementation of the CLCPA closely because its implementation affects my future as a New Yorker.  I summarized implementation details at CLCPA Summary Implementation Requirements.  I have described the law in general, evaluated its feasibility, estimated costs, described supporting regulations, listed the scoping plan strategies, summarized some of the meetings and complained that its advocates constantly confuse weather and climate.  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.

Background

In late 2020, the New York Department of Environmental Conservation (DEC) adopted Part 496 that defined the emissions limits for the CLCPA.  That law sets targets based on 1990 emissions and the regulation developed the emission inventory for 1990.  This year DEC will start producing an annual summary of current emissions but they have not released anything for public comment yet. 

According to a New York State Department of Environmental Conservation (DEC) bulletin dated May 10, 2021, the Advisory Panels to the Climate Action Council have all submitted recommendations for consideration in the Scoping Plan to achieve greenhouse gas (GHG) emissions reductions economy-wide and this is a “critical milestone to advance New York’s nation-leading Climate Law”.  A recent post summarizes the status of the implementation program and includes links to the recommendations themselves.  Buried in the strategies is a slide that lists the 1990 emissions, the current 2018 emissions and makes projections for 2030 and 2050 after the proposed strategies are adopted.  This post summarizes the 2018 emissions.

Discussion

I am very familiar with emissions from the power generation sector and know that there have been significant reductions.  However, the CLCPA mandates unique methods to calculate emissions including a requirement to include upstream emissions from fossil fuel extraction and I have no particular expertise relative to emissions from other sectors so I was unsure where the state stands relative to the CLCPA emissions.

I extracted the emissions from the presentations for the agriculture and forestry, energy-intensive and trade-exposed industries, power generation, energy efficiency and housing, waste and transportation advisory panel strategies presented to the Climate Action Council.  In 1990 total GHG emissions were 409 million metric tons (MMt) of CO2e and according to these preliminary estimates there were 377 MMt of CO2e in 2018.  This represents a reduction of only 7.8%.

NY Greenhouse Gas Emissions (MMt CO2e) in GWP20 by Advisory Panel Strategy Estimate

Advisory Panel19902018Difference% Difference
Agriculture and Forestry1724741.2%
Energy-Intensive and Trade-Exposed Industries3316-17-51.5%
Power Generation10060-40-40.0%
Energy Efficiency & Housing1031151211.7%
Waste5655-1-1.8%
Transportation10010777.0%
Total409377-32-7.8%

Emissions were available in six categories.  Three went down and three went up between 1990 and 2018.  In order to determine the viability of the emission reduction programs it is instructive to look at why power generation and the energy-intensive & trade-exposed industries emissions went down. 

Power generation emissions represent the largest mass reduction.  In March 2021, the New York State Energy Research and Development Authority published Patterns and Trends – New York State Energy Profiles: 2003-2017 that is “a comprehensive storehouse of energy statistics and data on energy consumption, supply sources, and price and expenditure information for New York State”.  It includes information on the primary consumption of energy for electricity generation by different types of generation that explains why GHG emissions have gone down so much.  In 1990 relatively high CO2 emitting coal and residual oil facilities generated 42% of the energy but in 2017 they only provided 1% an overall reduction of 98%.  Total energy for electric generation went down only 4% so other sources picked up the slack.  Natural gas use went up 68%, nuclear went up 76% and net imports went up nearly five times and wind and solar only contributed 25% relative to the increase in natural gas use.

The industry and waste reductions are much smaller.  The Pattern and Trends document also has information on the primary consumption of energy for the industrial sector.  Energy use in the industrial sector was reduced 47%.  I believe that simply shows the loss of New York industry.  The waste reduction was too small to worry about.

Conclusion

There are two emission reduction targets in the CLCPA: 40% reduction in GHG emissions by 2030 and 85% Reduction in GHG Emissions by 2050.  As of 2018 New York emissions have only been reduced by 8%.  I think it is pretty obvious that the likelihood that the state can meet those targets is very low simply by looking at these numbers.

It gets worse though.  Consider the three main sources of replacement power that displaced coal and residual oil in the power generation sector that caused the biggest emission reductions since 1990.  Coal has been outlawed and residual oil is close to de minimus levels so no further reductions are possible by fuel switching.  Nuclear had a big increase in power but that benefit will evaporate with the inexplicable decision to shut down Indian Point.  It does not seem to be good policy to rely on imported power from both a reliability and economic impact of displaced jobs standpoint.  Also of note is that the fuel switching to natural gas that occurred was despite New York policy that outlawed the technology that made that an economic switch.  There is a massive technological challenge to get further reductions of emissions in the power generation sector necessary to meet the CLCPA targets and the costs will be enormous.

It gets even worse when you consider that getting reductions in the other sectors not only face technological challenges and affordability limits but also require significant changes to lifestyles and personal choices.  Consider transportation: electric vehicles and public transit must be adopted by a significant fraction of the so far unsuspecting public. 

It may just be me but I am beginning to suspect that the reason that the 2018 emission inventory has not been released is because of the implications of these numbers.  I cannot imagine any way to meet the 2030 CLCPA targets that would not risk massive political repercussions.  It is in the best interests of the state to repeal the CLCPA.

Climate Leadership and Community Protection Act Status 12 May 2021

On July 18, 2019 New York Governor Andrew Cuomo signed the Climate Leadership and Community Protection Act (CLCPA), which establishes targets for decreasing greenhouse gas emissions, increasing renewable electricity production, and improving energy efficiency.  According to a New York State Department of Environmental Conservation (DEC) bulletin dated May 10, 2021, the Advisory Panels to the Climate Action Council have all submitted recommendations for consideration in the Scoping Plan to achieve greenhouse gas (GHG) emissions reductions economy-wide and this is a “critical milestone to advance New York’s nation-leading Climate Law”.  This post summarizes the status of the implementation program and includes links to the recommendations themselves.

I have written extensively on implementation of the CLCPA closely because its implementation affects my future as a New Yorker.  In this post I will briefly summarize the schedule and implementation components but I provide more details at CLCPA Summary Implementation Requirements.  I have described the law in general, evaluated its feasibility, estimated costs, described supporting regulations, listed the scoping plan strategies, summarized some of the meetings and complained that its advocates constantly confuse weather and climate.  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.

Background

The CLCPA establishes an implementation schedule for compliance with its targets.  In 2020 the law mandated that DEC establish the 2030 and 2050 statewide emission limits (Part 496) and determine a value of carbon for use by state agencies.  In addition, the Climate Action Council (CAC) had to be set up and start meeting.  According to the DEC bulletin:

The Climate Action Council is progressing according to the schedule included in the Climate Act and will now review the recommendations submitted by the seven advisory panels and the Just Transition Working Group to develop a draft Scoping Plan that will be released for public comment and the subject of six public hearings in 2022. The recommendations from the advisory panels, comprised of experts from across the State, will now be advanced into an integration analysis process, which will provide a cost-benefit assessment of the suite of strategies under consideration, accounting for the emissions reductions, job impacts, and health impacts of attaining the goals identified in the Climate Act. As required under the Climate Act, the final Scoping Plan will be posted online and delivered to the Governor and the Legislature in 2023, and DEC will release regulations to realize the emissions reductions from the plan’s strategies in 2024.

In order to “provide recommendations to the CAC on specific topics, in its preparation of the scoping plan, and interim updates to the scoping plan, and in fulfilling the council’s ongoing duties”, the CAC (§ 75-0103, 7) “shall convene advisory panels requiring special expertise and, at a minimum, shall establish advisory panels on transportation, energy intensive and trade-exposed industries, land-use and local government, energy efficiency and housing, power generation, and agriculture and forestry”.  Once the process started it became obvious that a waste was an issue so an additional panel was set up.

The recommendations will be submitted to New York State Energy Research & Development Authority consultants who will do the analysis work needed to prepare the draft scoping plan.  The CLCPA only notes that the draft scoping plan will be available next year, that there will be public hearings and that the final version is due during the year.  It will be interesting to see when the results of that work are released to the public and whether interim drafts are discussed with the advisory panels.

I will follow up with articles about the specific recommendations in future articles but in the meantime the presentations made describing the recommendations and the recommendations themselves are available:

Discussion

When I describe the recommendations in more detail in future articles, I will address specific issues related to implementation related to reliability, affordability, and environmental impacts.  In this status update I only want to raise some generic issues with the recommendation process to date.

My first concern is that the precautionary principle is driving the CLCPA recommendations.  Many members of the Advisory Panel and Climate Action Council want to eliminate risk.  For example, they maintain that the zero-emissions mandate of the CLCPA means that not only will there be no GHG emissions but no combustion emissions whatsoever.  Whether they don’t understand, don’t want to understand or understand but don’t care, the fact is that definition limits the technologies available to provide energy tremendously.  Coupled with the desire to use this law to address social justice concerns I worry that this will seriously risk current reliability standards.  As David Zaruk writes at the Risk Monger blog we have: “millennial militants preaching purpose from the policy pulpit, listening to a closed group of activists and virtue signaling sustainability ideologues in narrowly restricted consultation channels”.  The desire for no risk and addressing social justice concerns of many involved in the CLCPA process appears to over-ride the need for affordable and reliable power.

One of the common elements of the presentations was a claim that the advisory panels had an open process which considered public comments.  In 2010, New York prepared a similar Climate Action Plan that was intended to describe how the state could meet a GHG emissions reduction target of an 80% reduction target of 80% of 1990 levels by 2050.  In that process, it was possible for stakeholders to review the public comments submitted.  This process did not include any opportunity to see the comments submitted.  Moreover, it is not clear from the outside that members of the advisory panels were asked to review public comments and I am unaware of any support provided to them that included summaries of the public comments submitted.  I saw no indication whatsoever that any of my recommendations provided in comments were considered.  As a result, the claim that “we listened to care with every comment we received” is a hollow statement without proof.

The belief underpinning of the ideological agendas of many of the members of the advisory panels is that the transition to a zero-emissions energy system is simply a matter of political will.  I am convinced that many of the members simply don’t comprehend the technology issues that undermine that belief.  Worse, because they believe there are no barriers, then they also believe that the schedule can be accelerated.  As far as I could see none of the recommendations addressed logistical components of their recommendations in any detail.  For example in order to build the offshore wind facilities needed to meet the CLCA mandates “factories, ports, and ships required to make and deliver the turbines must first be planned, designed, funded, permitted, and constructed.”  As a result, the schedules in the recommendations are problematic and the suggestions that any aspects of the recommendations can be implemented immediately are absurd.

The biggest missing piece to the CLCPA story is the cost.  A 2017 study by economists at the University of Massachusetts-Amherst found that New York “will need an annual investment of about $31 billion per year in combined private and public spending to bring CO2 emissions down to 100 million tons by 2030.  I don’t expect that costs per ton reduced will improve so this is far less than what will be needed for the net-zero GHG emission target of the CLCPA.  Apparently we will have to wait until next year for cost estimates.

Conclusion

The “experts” who developed the advisory panel recommendations and the members of the Climate Action Council were all chosen because of who they knew rather than because of their expertise.  Worse most of them were chosen because their ideological biases conform to the Cuomo administration’s climate change green energy agenda.  Political interference in technology underpinning society rarely ends well and I have no doubts that this initiative will cause sky rocketing costs, catastrophic blackouts, and worse environmental impacts than the purported effects of climate change that the CLCPA is intended to prevent.  I will provide specific instances where their recommendations do not comport with reality in future articles.

Pragmatic Summary of the Climate and Community Investment Act

UPDATE 5/12/2021:  Contrary to my assertion, this legislation has not been passed by the New York Senate, it hasn’t even come up in committee yet in either house.

In the spring of 2021, the New York state Senate introduced and passed the Climate and Community Investment Act (CCIA).  At the time of this writing in early May 2021, the bill is being considered by the Environmental Committee of the Assembly.  Coming on the heels of the Texas energy debacle one might think that New York politicians would not propose any changes to energy and environmental laws until the causes of that disaster were understood or would at least make implementation contingent upon feasibility studies to determine if the ambitious goals of new legislation don’t risk a similar outcome in New York. Unfortunately, this summary of the proposed law shows that is not the case. 

I have written extensively about implementation of the Climate Leadership and Community Protection Act (CLCPA) because I believe it will adversely affect affordability and reliability as well as create more environmental harm than good. The CCIA will make those impacts worse.  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.

Background

The sponsor memo for this proposed regulation lists specific provisions in the proposed legislation.   I prepared an annotated version of the draft bill that includes internal links to the sections of the bill corresponding to those provisions.  The summary of Senate Bill S4264A states:

Enacts the climate and community investment act; prioritizes the allocation of public investments in disadvantaged communities; addresses climate change challenges through the expansion and growth of clean and renewable energy sources; adopts best value requirements for the solicitation, evaluation and award of renewable energy projects;  establishes a community just transition program; establishes a climate pollution fee and a household and small business energy rebate; and creates the climate and community investment authority.

I reviewed the sponsor memo for this proposed regulation in my overview post.  The memo describes the sections of the legislation. I prepared posts on the following sections of the proposed law:

This post will summarize all the sections of the proposed law.

The rationale for the legislation in the legislative findings in section 2 follows the premise of all the New York legislative and regulatory initiatives: there is a climate crisis, the effects of climate change are observable today, changes in greenhouse gas (GHG) concentrations due to humans are responsible for the observed climate changes, and New York action to reduce emissions will mitigate those effects.  I addressed these claims in my post and found much evidence that does not support those claims.  I also recently reviewed the state of the science related to the climate emergency and found that behind the façade of crying wolf about the alleged climate emergency there is a large body of evidence contradicting that claim.  Even though advocates dismiss any contradictory evidence there is a gaping hole in their rationale for the value of mitigation.  In the state of the science post I showed that the global warming impacts of New York emission reductions projected with the climate models being used to claim a climate emergency are simply too small to be measured, much less have an effect on any of the purported damages of greenhouse gas emissions.  In the context of global emissions New York’s efforts will be subsumed quickly by emissions increases in other countries that are morally obligated to provide the tangible benefits of affordable, abundant energy to their citizens by using fossil fuels. 

The rationale for the legislation claims that “Climate change especially heightens the vulnerability of disadvantaged communities including communities of color and low-income communities, which bear environmental and socioeconomic burdens as well as legacies of racial and ethnic discrimination”.  It goes on to claim that air pollution is another disproportionate burden, that Covid-19 was exacerbated by those burdens, and somehow even managed to relate these impacts to the George Floyd murder.  The authors of this legislation were surely affected by environmental justice advocate arguments that the disproportionate burdens of the environmental justice communities are exacerbated by power plants located in those communities as exemplified by articles like Fossil Fuel Phase Out Must Begin Where the Industry Has Hurt People the Most.  There are two fatal flaws in those arguments however.  They assume that there is no threshold for air pollution impacts which I believe is unsupportable.  With regards to power plants themselves the primary health effects are from ozone and inhalable particulates which are not directly emitted by power plants so local effects are unlikely.  As a result, the campaigns to retire power plants in disadvantaged communities is based on a mis-conception and will not have the desired effect.

Section 3 mandates a new air pollution pricing program by establishing a value of pollution and mitigation program.  The authors of this legislation have heard about the social cost of carbon and propose to implement a similar approach for other air pollutants.  I think this is deeply flawed because existing Clean Air Act regulations already address most of the concerns incorporated into a social costs approach.  The only missing component is a negative externality fee to cover the alleged social costs that is included in the CCIA.  The law mandates that New York will establish its own values but I have no doubts that the authors of the legislation don’t understand the effort needed to develop such a metric.  The CLCPA includes a value of carbon requirement and the Department of Environmental Conservation developed its own value but that effort depended upon extensive previous work on the Federal level.   There is nothing similar available for the other pollutants proposed in the legislation so that effort would have to start from scratch.

Section 8 establishes the Climate and Community Investment Authority. In general, I am not a fan of governmental agencies and I am particularly unimpressed with New York authorities.  The particular problem is that despite the dedication in New York authorities of staff members chosen because of their background and experience, their work is co-opted by managers chosen by politicians.  Over time and, particularly in the Cuomo Administration, the authorities no longer answer to the citizens of New York but to the agendas of the politicians.  Setting up a new authority for a specific agenda-driven program is a recipe for public policy that is not necessarily in the best interests of the state as a whole.  The mandated requirements for membership and operations exacerbate my concerns because they cater to the ideological preconceptions of the authors of the legislation.

The CLCPA does not include a provision to fund the efforts needed to implement the reductions necessary to meet the emissions targets.  Section 9 establishes a climate pollution fee presumably to address that need.  The authors of the legislation have proposed a complicated fee structure that includes an environmental integrity metric that adjusts the fee based on an arbitrary assessment of how they think the CLCPA reductions should be scheduled.  Inexplicably, there is no reference to the CLCPA mandated value of carbon and the proposed emissions fees are inconsistent with the calculated social cost values.

The legislative findings also argue that good jobs and a thriving economy should be a key concern of climate policy.  The bill includes provisions to establish responsible contracting, labor and job standards and worker protection; require prevailing wage for building service employees that are “employed in any building or facility that has received grants or tax abatements of one million or more”; and establish the climate change “just transition”.  The “just transition” slogan describes efforts to “ensure an equitable transition for New York’s workforce toward the State’s renewable energy future and will develop a forward-looking jobs report, identify workforce training needs, and assess opportunities to put former power plant sites to productive use”.  In my opinion all of these aspects of the law are included to cater to specific political demographics to engender support for the bill.

There is one aspect of the law that I completely support.  Section 4 of the bill amends the executive law to add a new section 184 to limit diversion of funds dedicated to the climate and community investment.  Too often in the past, funds that are supposed to be used for environmental control projects have been diverted to other politically expedient uses.

Discussion

I have previously described how the precautionary principle is driving the CLCPA mandates based on the work of David Zaruk, an EU risk and science communications specialist, and author of the Risk Monger blog.  His explanation that managing policy has become more about managing public expectations with consultations and citizen panels driving decisions describes the Advisory Panels to the Climate Action Council and the authors of this legislation.  He says now we have “millennial militants preaching purpose from the policy pulpit, listening to a closed group of activists and virtue signaling sustainability ideologues in narrowly restricted consultation channels”.  This legislation proposes to mandate that approach.  Instead of what they know, the Climate and Community Investment Authority directors will be determined by who they know.  Based on what happened during the CLCPA advisory panel process, the social justice concerns of many involved in the CCIA bureaucracy, including the most vocal, will be more important than providing the state affordable and reliable power.

This legislation will generate a lot of revenue with one estimate of $15 billion per year.  New York’s record investing the proceeds of the Regional Greenhouse Gas Initiative are often cited as an example of the value of New York’s support of clean and renewable energy.  The latest New York State Energy Research and Development Authority (NYSERDA) report New York’s RGGI-Funded Programs Status Report – Semiannual Report through June 30, 2020 describes the programs New York has set up to invest the proceeds from the Regional Greenhouse Gas Initiatives.  I found that NYSERDA supports 20 programs with associated CO2 reduction benefits and another 18 programs with no claimed CO2 reductions.  I compared the cost per ton reduced for those programs against the 2021 $127 New York Value of Carbon metric for cost effective investments.  Seventeen programs and the 18 programs with no claimed reductions do not meet this cost effectiveness standard.  I found that only 1.1% of the NYSERDA RGGI funds invested cost-effectively reduce CO2 emissions. This legislation has specifc mandates for Climate and Community Investment Authority funding including 33% for the “community just transition fund”, 30% for the “climate jobs and infrastructure fund”, 30% for the “low-income and small business and household energy rebate fund”, and 7% for the “worker community assurance fund”.  This will further dilute the cost effectiveness of emission reduction investments.

One of my biggest problems with this proposed legislation is mandates for specific information and programs that are already available elsewhere.  The value of pollution and mitigation program replicates the standards setting process of the Clean Air Act but proposes to go beyond that process and conjure up emission fees based on the social cost of carbon model.  There already is a pollutant emission fee and the effort necessary to develop social cost indices are clearly under-estimated.  The only rationale for these components of the legislation is disappointment that the existing programs don’t give the answers the authors want.

Conclusion

The rationale for the CCIA epitomizes the belief that manmade climate change is a factor in many of today’s societal problems.  Judith Curry describes and responds to the cover story, “Climate is Everything” in the April 26 issue of Time Magazine.  She concludes:

The ever-expanding narrative of climate change entrains a range of social values into the proposed solutions. The momentum of the climate change narrative leads to claims that there is a solution to many other societal problems within the climate change cause – an example is social justice in the context of the U.S. Green New Deal.  This link acts to energize both causes, and leverages the climate change narrative to blame or attack those opposed to the separate cause.  

Climate change has thus become a grand narrative in which human-caused climate change has become a dominant cause of societal problems. Everything that goes wrong then reinforces the conviction that that there is only one thing we can do prevent societal problems – stop burning fossil fuels. This grand narrative misleads us to think that if we solve the problem of manmade climate change, then these other problems would also be solved. This belief leads us away from a deeper investigation of the true causes of these problems. The end result is narrowing of the viewpoints and policy options that we are willing to consider in dealing with complex issues such as public health, weather disasters and national security. 

I leave it to readers to determine if their value judgements support the link between societal benefits and climate change mitigation but I believe that other risks must be considered.  For example, there are reliability risks.  The legislative findings note that Superstorm Sandy in 2012 “caused at least 53 deaths and $32 billion in damage in New York state”. It is notable that the February 2021 blackout in Texas caused similar impacts.  One disaster was caused by nature and many impacts of the other were caused by a failure in the planning for the electric energy system.  New York’s proposed energy transition goes well beyond the recent changes to the Texas energy system and risks a similar outcome unless all identified problems are addressed.

Energy cost affordability is another major risk.  WHAM reports that the carbon tax alone would bring in $2.3 billion a year and could increase gasoline costs 55 cents a gallon.  The sponsor, Senator Kevin Parker says: “We do believe that the benefits way outweigh the hurt that people may be feeling with this legislation”.   I believe the purported benefits are illusions.  Eliminating New York’s GHG emissions will not have any measurable effect on global warming and will be replaced by emissions elsewhere in the world in a matter of months.  The social cost benefits of carbon are numbers developed to “prove” cost-effectiveness but the reality is the costs are real and the benefits illusions.

A primary objective in this legislation is environmental justice.  I believe that if you want to protect the environment, you must fight poverty.  On a global level the poor are trying to make it from one day to the next and don’t have energy or resources for protecting the environment. They have poorer health outcomes, lower quality of life, shorter lives, and worse education.  In New York any additional costs of energy for this virtue-signaling legislation will increase energy poverty and exacerbate similar issues.  The fact that those costs in aspects of this legislation are for efforts that duplicate Clean Air Act programs is especially troubling.  My entire career has been related to air quality regulation and impacts and I am comfortable that the existing regulations are adequately protecting health and welfare.

To sum up the rationale for this law is that there is a climate crisis, the effects of climate change are observable today, changes in greenhouse gas (GHG) concentrations due to humans are responsible for the observed climate changes, and New York action to reduce emissions will mitigate those effects.  The most important takeaway from this post is that even if one accepts the premise that human emissions are affecting the climate in observable ways, New York’s contribution to the global greenhouse gas emissions is so small that eliminating New York’s GHG emissions will have no observable effect.  Given the enormous costs this means that this legislation is a poor deal for New Yorkers.

Climate and Community Investment Act – Value of Pollution and Mitigation Program

In the spring of 2021, the New York state Senate introduced the Climate and Community Investment Act (CCIA).  Coming on the heels of the Texas energy debacle one might think that New York politicians would not propose any changes to energy and environmental laws until the causes of that disaster were understood or would at least make implementation contingent upon feasibility studies to determine if the ambitious goals of this legislation don’t risk a similar outcome in New York. This post on the proposed amendment to Article 19 is one of a series of posts about this legislation.  Posts to date include an overview, summaries of the climate pollution fee and legislative findings, and a description of the Climate and Community Investment Authority.

I have written extensively about implementation of the Climate Leadership and Community Protection Act (CLCPA) because I believe it will adversely affect affordability and reliability as well as create more environmental harm than good. The CCIA will make those impacts worse.  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.

Background

The sponsor memo for this proposed regulation lists specific provisions in the proposed legislation.   I prepared an annotated version of the draft bill that includes internal links to the sections of the bill corresponding to those provisions.  The summary of Senate Bill S4264A states:

Enacts the climate and community investment act; prioritizes the allocation of public investments in disadvantaged communities; addresses climate change challenges through the expansion and growth of clean and renewable energy sources; adopts best value requirements for the solicitation, evaluation and award of renewable energy projects;  establishes a community just transition program; establishes a climate pollution fee and a household and small business energy rebate; and creates the climate and community investment authority.

Value of Pollution and Mitigation Program

This post describes the proposed amendment to Article 19 of the Environmental Conservation Law that adds a new title: Value of Pollution and Mitigation Program.  The title includes the following sections: methodology and valuation of pollution price index, implementation of fees, allocation of revenues,

inventory, transportation pollution, and reporting.  I will address each in turn.

The first section specifies a methodology for developing a pollution price index.  A year after the effective date of the law the Climate and Community Investment Authority is required to develop a social cost index and methodology for regulated pollutants. The Authority is supposed to consider, at a minimum: “(a) public health impacts, including but not limited to: loss of life, loss of welfare, and employment impacts; (b) impacts to public and private property, including agricultural property; (c) impacts to ecosystems and the ability of ecosystems to provide ecosystem services; and (d) the full life-cycle of impacts”. 

This apparently has its roots in the social cost of carbon approach to valuing social costs.  There are issues with this. In the first place, while there is no equivalent Federal pollution social price index, the National Ambient Air Quality Standards in the Clean Air Act address health and welfare impacts.  I believe that aside from the full life cycle of impacts requirement, these considerations are covered by the existing Clean Air Act process.  In addition, to do this right requires a significant investment of resources to attract the subject matter experts necessary to develop a defensible index.

The next section implements fees based on the social cost indices developed in the previous section.  New York already has a fee on regulated pollutants which are used to fund the Title V permitting process among other programs.  It is not clear to me whether the legislation proposes to levy fees on sources not currently required to report detailed emissions reports.  Note that as New York pollution has fallen the money necessary to maintain the permitting programs has become inadequate to cover those costs. 

The revenues generated by the fee are allocated to more than the Title V permitting program. The proposed legislation states that “forty percent of funds shall go to the environmental justice office of the authority; twenty percent of funds shall go to expanding, operating and maintaining the New York state Title V emissions inventory within the department; twenty percent of funds shall go to expanding, operating and maintaining air quality monitoring, including ambient air quality monitoring and point source monitoring within the department; and twenty percent of funds shall be allocated at the discretion of the authority, based on the needs of the authority”.  The proposal specifically states that “No funds shall be allocated to fund police, prisons or related infrastructure.”  The annual per ton fee is established under 6 NYCRR 482-2.  As of January 1, 2020 the fee per ton emitted ranges between $60 and $90 depending on the total emissions of the source.  If the revenues provide equivalent funding for the Title V program, then the overall rates would be five times higher.

In my post on the Climate and Community Investment Authority I included some estimates of the revenues expected from this law and necessary to implement the CLCPA.  According to this article, New York “will need an annual investment of about $31 billion per year in combined private and public spending to bring CO2 emissions down to 100 million tons by 2030, a 2017 study by economists at the University of Massachusetts-Amherst found.  That equates to two percent of the state GDP.  At a recent hearing a figure of $15 billion a year in revenues was mentioned.  WHAM reports that the carbon tax alone would bring in $2.3 billion a year.  According to the 2019 Title V emission inventory there were 41,084,926 tons of CO2 emitted and at $55 per ton that matches the news report.  However, the total air emissions excluding CO2 in the 2019 Title V inventory are only 79,082 tons.  The largest Title V permit fee is $90 per ton and that regulation caps the total tons.  Note that 79,082 tons times $90 is $35.6 million, far short of the $15 billion.  Therefore, in order to reach the $15 billion estimate the cost per ton of air pollutants would have to be $161,104 per ton.  I conclude that I have no idea what the revenues will be other than “a lot”.

In order to implement the fees affected sources have to report their emissions.   The Title V program already has an emissions reporting system in place.  The proposed law defines “Regulated air contaminant” as the following:

a. oxides of nitrogen;

b. volatile organic compounds;

c. sulfur dioxide;

d. particulate;

e. carbon monoxide;

f. any class I or II substance subject to a standard promulgated pursuant to section 7671 of the Act;

g. any other air contaminant for which a national ambient air quality standard has been promulgated;  or

h. any air contaminant that is regulated under section 7411 or 7412 (b) and (c) of the Act and which the commissioner has listed in regulation.  The department may use emergency rulemaking pursuant to subdivision six of section two hundred two of the state administrative procedure act if necessary, in order to timely list such air contaminants.

While most of the major pollutants are already included in the existing inventory, I am not sure that it includes them all.  One final note – DEC issues three types of air permits that have different reporting requirements.  The naïve response is that not requiring reports is a loophole that subjects citizens of the state to undue risk.  The reality is that there are so many small sources with so few total emissions that the time and effort necessary to report and process is unnecessary because there is no adverse risk.

There also is a provision in the law to “make the Title V emissions inventory more accessible to the public including, but not limited to, taking action to release the related data, analysis and assumptions of agency websites.”  Frankly until I researched this post, I was not aware that the data were available but a quick internet search found the Title V emissions inventory data which fulfills the criterion for a publicly available inventory. The analysis and assumptions criteria are more difficult to address.  I was responsible for submitting the emission statements and did the analysis because I had the background to do it.  It was the one reporting task that I dreaded every year because documenting the analysis and assumptions was tedious and difficult to do in sufficient detail so that the Department of Environmental Conservation (DEC) technical staff could understand how my numbers were derived.  This legal requirement reminds me of managers who would request information from different people until they got the answer they wanted or understood.  Unless the emissions are directly measured at a source, emissions are estimated by multiplying an activity factor (e.g., the amount of the substance used) times an Environmental Protection Agency emission factor (derived from emissions testing programs).  Is there really a need for the public to have that level of detail available?  Isn’t sufficient to rely on the technical staff at the DEC to review the submitted documentation and confirm that the submittals are reasonable? 

This title also addressed transportation pollution.  In addition to my experience developing emission factors and using stationary source emission inventories, I also worked with transportation emissions.  The transportation pollution aspects of this section entirely replicate the EPA Clean Air Act process apparently because the authors don’t like the current situation.  I have sympathy for their concerns because I believe that in urban areas transportation sources are the primary source of air pollution.  However, at the end of the day I doubt that this legislation can do anymore than what DEC is currently doing.  There has been a long history of California attempting to impose stricter emission limits than the national levels and continuous litigation and settlement to resolve the differences.  It could end up with car companies simply not offering cars in New York because of state limits and then the issue becomes one of enforcement at the borders to keep non-compliant cars out.

There also is a reporting requirement to document the implementation of the policies.  The report must address reduction effectiveness of the fees, an overview of social benefits, compliance costs, and administrative costs, whether the fees are “equitable, minimize costs and maximize the total benefits to the state”, and include recommendations for policy changes and future regulatory actions.  I agree that these are appropriate requirements but believe that it would be appropriate to do a feasibility report before implementing the requirements.  I don’t think that any added costs to energy can ever be “equitable” because energy use is inelastic and extra costs will always disproportionally impact those least able to pay the most.  A transparent and unbiased feasibility study could very well find other flaws that indicate that this agenda-driven is poor policy.  In my opinion, many of the “wish list” components of this law would not stand up to scrutiny.

Conclusion

The social costs of pollution mandate included in the legislation is a naïve requirement.  I believe that the authors heard about social costs someplace, thought it sounds good, believe it probably can be used to their advantage so they threw it into the regulation even though they don’t understand it fully.  I believe the concept, if not the jargon, is already included in the Clean Air Act.  The National Ambient Air Quality Standards are established based on health and welfare impacts at levels designed to protect the public.  The rationale for this mandate comes back to the authors’ belief that existing air quality regulations don’t give us the answer we want so we will make up our own regulations.

The social costs approach is also included because it justifies the need for a pollution fee.  Dr. Steven McKitrick evaluated carbon pricing policies in Canada that are the template for this approach.  He explained that “a beneficial outcome is not guaranteed” because certain rules must be observed in order for social cost pricing to reduce emissions without unduly hurting the economy.  He believes that social cost pricing only works in the absence of any other emission regulations. “If pricing is layered on top of an emission-regulating regime already in place (such as emission caps or feed-in-tariff programs), it will not only fail to produce the desired effects in terms of emission rationing, it will have distortionary effects that cause disproportionate damage in the economy.”   As I explained before, nearly everything in this legislation replicates existing programs with established emission limits.  The only exception is changing the pollutant fees to a flat fee to one indexed to a social cost parameter.

Ultimately, the Value of Pollution and Mitigation Program section of the CCIA replicates many aspects of existing programs in the Clean Air Act and New York regulations.  I think the authors don’t fully understand existing regulations or don’t care because they are not getting the answer they want which is zero impacts.  This law will impose reporting burdens and added costs to any sources that emit anything to the atmosphere and major commitments by NY agencies to implement a new regulatory reporting system.  I believe that those burdens are all redundant because existing programs address their concerns.  I also think that the authors do not understand the magnitude of the effort needed to develop air pollution social cost indices or that their plan will not work as they expect. 

Climate and Community Investment Authority

In the spring of 2021, the New York state Senate introduced the Climate and Community Investment Act (CCIA).  Coming on the heels of the Texas energy debacle one might think that New York politicians would not propose any changes to energy and environmental laws until the causes of that disaster were understood or would at least make implementation contingent upon feasibility studies to determine if the ambitious goals of this legislation don’t risk a similar outcome in New York. This is one of a series of posts about this legislation.  Posts to date include an overview and summaries of the climate pollution fee and legislative findings.

I have written extensively about implementation of the Climate Leadership and Community Protection Act (CLCPA) because I believe it will adversely affect affordability and reliability as well as create more environmental harm than good. The CCIA will make those impacts worse.  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.

Background

The sponsor memo for this proposed regulation lists specific provisions in the proposed legislation.   I prepared an annotated version of the draft bill that includes internal links to the sections of the bill corresponding to those provisions.  The summary of Senate Bill S4264A states:

Enacts the climate and community investment act; prioritizes the allocation of public investments in disadvantaged communities; addresses climate change challenges through the expansion and growth of clean and renewable energy sources; adopts best value requirements for the solicitation, evaluation and award of renewable energy projects;  establishes a community just transition program; establishes a climate pollution fee and a household and small business energy rebate; and creates the climate and community investment authority.

Climate and Community Investment Authority

This post describes a proposed addition to the Public Authorities Law that adds the Climate and Community Investment Authority (Authority).  The legislative findings explain the purpose of this authority:

21. It is in the interest of the state to establish a dedicated authority to ensure that New York’s climate goals are accomplished. Such an authority would be able to nimbly manage the proceeds from a polluter fee which will amass significant revenue and require ongoing management.  This authority would also disburse funds for clean energy community scale projects in a timely and efficient manner while employing best value procurement practices. In addition, a new authority would have the capacity to ensure prioritization of projects and funds for impacted communities, coordinate statewide emissions reduction strategies and assist impacted workers in a transition away from fossil fuels through specialized assistance programs

The Authority’s board of trustees establishes the following offices: environmental justice, household and small business energy rebates, climate jobs and infrastructure, community just transition, worker and community assurance, value of pollution and mitigation program, procurement, public engagement and independent ombudsperson, and any other offices as necessary.  Each office created by the authority shall: “Abide by the principles of environmental justice, including the federal executive order 12898 of 1994, relating to environmental justice, and the Jemez principles of democratic organizing. Such principles shall include: being inclusive; placing an emphasis on bottom-up organizing; letting people speak for themselves; working together in solidarity and mutuality; building just relationships among ourselves; and making a commitment to self-transformation.” 

The Board of Trustees consists of five trustees from state agencies, two appointees from the Governor, three from the temporary president of the Senate and three from the speaker of the Assembly.  At least one appointee must live in eight regions outside of New York City.  A minimum of three trustees “shall be representative of environmental justice communities” and one shall be a representative of a youth organization under the age of 21.  However, “All trustees appointed under this section shall have relevant experience in any or all of the following areas: utility, environmental justice, energy markets, energy systems, organized labor, workforce development, sustainable land use, transportation, and clean energy.” 

Comments

In general, I am not a fan of governmental agencies and I am particularly unimpressed with New York authorities.  The particular problem is that despite the dedication in New York authorities of staff members chosen because of their background and experience, their work is co-opted by managers chosen by politicians.  Over time and, particularly in the Cuomo Administration, the authorities no longer answer to the citizens of New York but to the agendas of the politicians.  Setting up a new authority for a specific agenda-driven program is a recipe for public policy that is not necessarily in the best interests of the state as a whole.

The legislative findings note that this authority “would be able to nimbly manage the proceeds from a polluter fee which will amass significant revenue and require ongoing management.”  It is not clear to me how a new authority with six agenda-driven offices could ever “nimbly” manage anything much less money.  Unfortunately, the nimble goal gets much less likely given the organizational mandates that dictate how decisions are supposed to be made. 

The reference to “significant” revenues is a key point for New Yorkers to understand.  In conversations with people familiar with Albany politics one of the major drivers of this law is to provide the funding needed for CLCPA target implementation.  So far, the Climate Action Council and its advisory panels have avoided mentioning any cost estimates.  However, according to this article, New York “will need an annual investment of about $31 billion per year in combined private and public spending to bring CO2 emissions down to 100 million tons by 2030, a 2017 study by economists at the University of Massachusetts-Amherst found.  That equates to two percent of the state GDP.  At a recent hearing a figure of $15 billion a year in revenues was mentioned.  WHAM reports that the carbon tax alone would bring in $2.3 billion a year and that measure could increase gas prices 55 cents a gallon and raise home heating costs 26%.  As egregious as these costs estimates are, the total cost of the CLCPA will likely be even more.

Each of the offices has a politically appointed director.  I am uncomfortable with this language:

Pursuant to authority duly delegated to him or her, a director from time to time shall hire, without regard to any personnel or civil service law, rule, or regulation of the state and in accordance with guidelines adopted by the board, such officers, employees and consultants, as they may require for the performance of their duties and shall prescribe the duties and compensation of each such officer, employee or consultant. Notwithstanding the provisions of any general, special or local law, the board may determine that, if any pension or retirement plan becomes inapplicable or is terminated, all or such class or classes of employees of the authority as the board may determine may elect to become members of the New York state employees’ retirement system on the basis of compensation payable to them by the authority.

Maybe it is just me but this seems to be a recipe for bureaucratic abuse.

Finally, there are 13 trustees all chosen because of who they know rather than what they know. They all are politically appointed and despite the requirement that they will have “relevant experience” that requirement rings hollow when one of the trustees is supposed to be under 21.  The only relevant experience for the child trustee that I can think of is membership in an environmental organization. 

Conclusion

New York’s record for clean energy development is not good because the cost per ton of CO2 reduced using the proceeds from the Regional Greenhouse Gas Initiative far exceeds the states social cost of carbon.  My impression is that some of the reason for that poor performance is because of the cost of New York bureaucracy.  This legislation would compound that problem significantly.  It will be a windfall for the politically connected and the crony capitalists but will just mean increased costs of living for the citizens of New York.