Keep Clean Energy Funds Out of Annual Budget Battle
by Robert J. Moore, Executive Director, Environmental Advocates of NY

In last week’s budget proposal, the New York State Legislature included a shortsighted plan to grab control of the state’s clean energy funds. This ploy would subject clean energy programs to the politically charged, backroom deal-making we know as the state budget process.

Legislators who are proponents for controlling these funds say that appropriating the monies will increase transparency and accountability. They are either unfamiliar with the state’s budget process or have other ideas.

Moving clean energy funds into the state budget is a mistake and Governor Pataki would be correct to veto this proposal. No other state appropriates the funding for programs like these, in order to guarantee longterm funding and contracts.

In 2006, New York will invest almost $200 million in renewable energy and energy efficiency. These funds are managed by the New York State Energy Research and Development Authority (NYSERDA). Recent audits by the state comptroller’s office note NYSERDA’s responsible and transparent fiscal management.

Clean energy funds come to NYSERDA by means of the System Benefit Charge (approximately $175 million) and the Renewable Portfolio Standard ($24 million). Revenue is generated through a surcharge on our electricity bills—about a dollar for most consumers—a small investment for the big benefits New York receives from NYSERDA’s efforts.

New York’s clean energy investment has reduced electricity use by more than 1,400,000 megawatt hours and cut peak demand by the equivalent of three large coal-fired power plants.

Our investment has reduced annual emissions by 1,280 tons of nitrogen oxide, 2,320 tons of sulfur dioxide, and 1,000,000 tons of carbon dioxide. The carbon dioxide reduction is equivalent to removing 200,000 automobiles from New York’s roadways.

Since their inception energy efficiency measures supported by these funds have saved New Yorkers an estimated $195 million, per year. Savings will increase to $420-435 million at full implementation.

NYSERDA’s efforts are also attracting hundreds of millions of dollars to Central and Western New York. Projects like the Maple Ridge Wind Farm in Lewis County are being built—bringing jobs and revenue to upstate communities while reducing air pollution and providing a hedge against rising energy costs.

The legislature’s desire to control the state’s clean energy funds puts all of this at risk.

Renewable energy companies choose where to build their projects. Consistent and predictable funding is a strong incentive to bring projects, and the jobs they provide, to New York. However, if these funds are subjected to the uncertainties of the state budget process, clean energy companies will question whether their long-term contracts are safe from the whims of the legislature—and individual legislators.

Many organizations have concerns with the legislature’s plan—the State Builder’s Association, Independent Power Producers of New York, labor unions, clean energy companies, environmental organizations, and others. NYS Senator David Patterson and members of the Senate have added their voices to those concerned about the appropriation of these funds.

Governor Pataki would be right to veto this measure, and he would have the support of millions of New Yorkers. In the end, the legislature is acting to increase its power, rather than to bring clean power to New York—and the jobs and benefits that come with it. New Yorkers need and deserve a safe, renewable energy future. With continued investment and oversight from a proven agency like NYSERDA, we are well on our way.

by Robert J. Moore, Executive Director, Environmental Advocates of NY

4/4/06