Committee Staff:        Richard Colón, Policy Analyst

                                                                                    Donna De Costanzo, Counsel

                                                                                    Veronica McNeil, Finance

                                                                                    Jonathan Rosenberg, Finance

                                                                                    Maria Alvarado, Communications

 

 

 

 

 

 

 

 

 

THE NEW YORK CITY COUNCIL

 

COMMITTEE ON ENVIRONMENTAL PROTECTION

JAMES F. GENNARO, CHAIRMAN

 

INFRASTRUCTURE DIVISION

MARCEL VAN OOYEN, LEGISLATIVE DIRECTOR

 

 

JUNE 23, 2004

 

 

Int. No. 374    By the Speaker (Council Member Miller) and Council Members Gennaro, Addabbo, Baez, Brewer, Clarke, Filder, Foster, Gentile, Gerson, James, Koppell, Liu, Lopez, Martinez, McMahon, Monserrate, Nelson, Palma, Quinn, Recchia, Reed, Sanders, Stewart, Vann and Weprin

 

Title:               A Local Law to amend the New York city charter, in relation to creating an energy shortage contingency plan.

 

Int. No. 375    By the Speaker (Council Member Miller) and Council Members Gennaro, Addabbo, Baez, Brewer, Clarke, Fidler, Foster, Gerson, Koppell, Liu, Lopez, Martinez, Monserrate, Nelson, Palma, Quinn, Reed, Sanders, Stewart and Weprin

 

Title:               A Local Law to amend the New York city charter, in relation to the creation of an energy office and public awareness city-wide of energy efficiency and conservation measures.

 

 

 

Int. No. 381    By Council Members Gennaro, Brewer, Clarke, Fidler, Gentile, Gerson, Liu, Lopez, Martinez, Nelson, Quinn, Recchia, Rivera, Vallone and Weprin

 

Title:               A Local Law to amend the administrative code of the city of New York, in relation to a survey regarding clean on-site power generation for city facilities.

 

Int. No. 382    By Council Members Gennaro, Brewer, Clarke, Gentile, Gerson, Koppell, Liu, Lopez, Martinez, Quinn, Stewart and Weprin

 

Title:               A Local Law to amend the administrative code of the city of New York, in relation to the creation of a program regarding building commissioning and energy efficiency and conservation training.

 

On Wednesday, June 23, 2004, the Committee on Environmental Protection will hold a hearing on Int. No. 374, which would amend the New York city charter, in relation to creating an energy shortage contingency plan, Int. No. 375, which would amend the New York city charter, in relation to the creation of an energy office and public awareness city-wide of energy efficiency and conservation measures, Int. No. 381, which would amend the Administrative Code of the City of New York, in relation to a survey regarding clean on-site power generation for city facilities, and Int. No. 382, which would amend the Administrative Code of the City of New York, in relation to the creation of a program regarding building commissioning and energy efficiency and conservation training. 

 

I.          Introduction

In August 2001, New York City’s energy demand reached record-setting levels when the Northeast experienced a major heat wave.[1]  That stress on New York’s electric system underscored the concern that the State’s energy supply might not be adequate to meet its demand.  The following month, the City of New York experienced a reduction in the demand for electricity following the September 11th terrorist attack on the World Trade Center.  However, as the City rebuilds and recovers from a sluggish economy, the demand by New York City customers for electricity is expected to exceed the amount of reliable supply as a result of an increase in the use of electrical devices.  According to several high-ranking officials and organizations, including Mayor Bloomberg, the New York State Attorney General, the New York State Business Council, the New York Building Congress and the Independent Power Producers of New York (IPPNY), without an increase in generating capacity to meet the demand and increased emphasis on energy efficiency, the City of New York could face brownouts and blackouts as well as price spikes.[2]  Energy experts have recommended several measures to address the potential power crisis, including the construction of new electric generating plants and an increase in energy efficiency and conservation measures.

            According to the New York Independent System Operator (NYISO), New York State will need an additional 5,000-----7,000 megawatts (MW) of electric generating capacity in the next five years “to enhance reliability and security, keep prices competitive, and benefit the environment.”[3]  Furthermore, NYISO contends that a “majority of these 5,000-plus MW should be built in the downstate and Long Island areas.”[4]  New York’s reliability requirements demand that a significant portion of electricity must be generated within the boundaries of New York City.  This is based on the “80 percent rule”, which requires that eighty percent of the City’s peak demand capacity be generated within City limits in order to maintain the reliability of the City’s electricity supply.  Also, the NYISO and the New York State Reliability Council (NYSRC) have established an 18% “capacity reserve margin”, which requires that a reserve equal to at least 18% of projected electricity demand be maintained to ensure system reliability.  “Of the 5,000 to 7,000 additional megawatts (MW) of generation originally recommended by the NYISO to be in place by 2008, more than 3,000 MW have already been built.”[5]  However, according to the NYISO, “New York City will not be able to meet its capacity requirement in 2009 unless new generation that is not already under construction comes on line; or scheduled retirements are deferred.”[6]  Additionally, the NYISO is forecasting that under normal weather conditions, the City’s demand is projected to reach 11,150 MW during the summer of 2004, of which 80%, or 8,920 MW, must be maintained from In-City requirements.[7]  Since the City has an expected supply of 9,188 MW for this summer, the City will have an excess of only 268 MW above the minimum locality requirement.[8]  However, under extreme weather conditions, the NYISO is projecting the City’s demand to reach 11,585 MW, of which 80%, or 9,268 MW, must be maintained from In-City requirements.[9]  Since, as previously mentioned, the City’s expected supply for the summer of 2004 is 9,188 MW, the City would be 80 MW below the minimum locality requirement.[10]  

            As previously mentioned, it is widely believed by high-ranking officials and organizations that new power plants will be needed to meet the projected additional capacity requirements.[11]  Prior to January 1, 2003, new electric power plants built in New York State with a generating capacity of 80 MW or more and existing power plants seeking to expand to provide a generating capacity of 80 MW or more were required to undergo a review and permitting process pursuant to Article X of the State Public Service Law.  Under that law, new and expanding facilities had to obtain a Certificate of Environmental Compatibility and Public Need from the New York State Public Service Commission’s (NYSPSC) State Board on Electric Generation Siting and the Environment (Siting Board).[12]  Since Article X expired at the end of 2002, new power plants must undergo a renewed permitting process pursuant to the State Environmental Quality Review Act (SEQRA), a process that, according to the New York City Energy Policy Task Force (“Task Force”), which was established in July of 2003 by Mayor Michael R. Bloomberg following a City energy issues meeting, “is far more cumbersome than with the Article X process in place.”[13]  More disturbing is NYISO’s contention that “[t]he future outlook for adequate, efficient and environmentally friendly generation is bleak.”[14]  The Task Force notes that financial markets have “created problems for developers of electric generation facilities since the bankruptcies of Enron, Mirant, PG&E’s National Energy Group, and NRG, as well as the financial distress of still more merchant developers and marketers.”[15]  In addition, the Task Force asserts that “[w]hile a number of developers remain active and financially sound (including subsidiaries of PSEG and KeySpan) and credit-worthy affiliates of such financial firms as Goldman Sachs and Kohlberg Kravitz Roberts & Co. are taking equity positions in new projects, it may be some time before the confidence of lenders returns to the sector.”[16]  According to the NYISO, “there is little evidence that serious consideration is being given to additional new generation in New York State, New York City, or on Long Island.  This dim outlook is due to a confluence of factors, which combine to produce market uncertainty and paralysis.”[17]  Several of the major negative drivers are:

·                    The expiration of New York’s Article X Siting Law.

·                    The Enron disclosures and the subsequent severe financial problems of merchant generation companies, effectively eliminating near-term financing of new merchant projects, including those that hold siting permits.

·                    Problems in New York (and the region’s) wholesale capacity markets and the institutional difficulties of entering into long-term power supply contracts further restrict generation developers’ and end use suppliers’ options.

·                    New state emissions standards may cause the retirement of existing generating facilities.[18]

 

Currently, there are sixteen (16) generation projects, subject to the New York State Article X Siting Law, that are either under construction, approved or have an application that is pending.[19]  These generation projects submitted applications prior to the expiration of Article X.[20]  However, the NYISO and the New York City Energy Policy Task Force have concluded that the market for future construction of additional new generation projects does not appear promising due to the aforementioned negative factors.

 

II.        The Electric System in New York State

In 1997, the energy industry in New York was deregulated, separating the generation of power from companies that own the power lines and establishing a market where electricity could be traded like any other commodity.  The intent of such deregulation was to lower prices and guarantee a sufficient supply of energy.[21]

            Deregulation of the energy industry has been criticized by some and lauded by others.  Critics contend that such deregulation obfuscates the lines of responsibility and accountability over vital measures such as the security of generating stations and transmission lines, and the expensive upkeep of the distribution network.  More optimistic about the energy deregulation is the NYISO, which notes that since deregulation of the energy market in New York, much progress has been made in establishing fair, efficient and competitive wholesale markets in the State.  The NYISO notes, however, that the disclosure surrounding the demise of Enron and the crumbling finances of many merchant-generating companies have combined to discourage investment in power facilities in New York and elsewhere.[22]  Therefore, the City must develop strategies for meeting current and future energy demands in order to “maintain its position as the financial, corporate and communications capital of the world.”[23]  The regional blackout of 2003 clearly reminded New Yorkers about how critical a constant stream of electricity is to the City’s economy and environment.

 

III.       The Blackout of 2003

            On the afternoon of Thursday, August 14, 2003, the State of New York experienced a loss of electrical service.  Other states that were directly affected by the electrical power failure – the largest power failure in United States history – were Michigan, Ohio, Pennsylvania, New Jersey, Connecticut, Vermont and Massachusetts.[24] Although it is widely held that a lack of generating capacity in New York State was not the cause of the Blackout of 2003, nevertheless, it impacted millions of people and resulted in adverse environmental impacts and serious economic losses for New York City.  The blackout was a reminder to all New Yorkers that the City must have a dependable source of electricity since electricity “makes much of the City’s daily functioning possible – from the vast underground transit system and the commuter rail network to the elevators that serve our high-rise buildings.”[25]

            The Office of the New York City Comptroller has estimated that New York City lost more than $1 billion dollars as a result of the blackout of 2003.[26]  The blackout also adversely impacted the City’s environment as a result of the extra trash, including food thrown out by restaurants and stores, which piled up on the streets of New York.  Furthermore, the power outage “caused water treatment plants and a pumping station to spew untreated water and sewage into New York area waters.”[27]  “By the time electricity was restored, 490 million gallons had spilled…causing beaches to close and posing health and environmental hazards”.[28]

 

IV.       Meeting Current and Future Energy Demands

            In light of the dim energy market outlook, the City must develop concrete strategies to meet current and future energy demands.  In 2003, according to the Task Force,

“New York City’s forecasted peak electricity demand was 11,020 megawatts.  By regulation and for reliability purposes, 8,816 MW, or 80% of that forecasted peak load, had to be supplied by capacity available in-City.  The available electricity supply capacity in the City exceeded the 80% requirement by only 71 MW.

 

In other words, New York City has adequate electricity resources today, but only by a slim margin.  A projected increase of approximately 1.5% annually in electricity demand in the next five years will necessitate new generation and transmission facilities and expanded distributed resources measures.  Additional resources will be required to assure market price stability, and old power plants will need to be retired and/or replaced with cleaner, more efficient facilities by 2008.”[29]

 

The Task Force has concluded that “the City will need 2,600 megawatts of new electricity resources by 2008 to ensure continued reliability, promote economic growth and address environmental issues.”[30]  This additional 2,600 megawatts of new electricity resources for the City is not to be confused with, as previously mentioned, the additional 5,000-----7,000 megawatts that, according to the NYISO, the State of New York must bring online by 2008.  According to the Task Force, the best way for the City to meet the goal of 2,600 megawatts of new electricity resources “will be through a combination of generation plants (both new and repowered), transmission lines, and distributed resources – including clean on-site generation and various methods of energy efficiency and demand reduction.”[31]  In addition, the Task Force concluded that “[n]atural gas pipelines and local electric, gas and steam distribution systems, which are critical to energy delivery, must also be enhanced,” and that the “City government should serve as a model by managing its own electricity use wisely.”[32] 

 

 

V.        Energy Conservation

 

            There are many energy conservation strategies that can play an important role in reducing energy use while also helping to ensure abundant energy supplies in the future.  To this end, the Council released, in July 2002, a report entitled “Saving Power, Saving Money: An Energy Efficiency Plan for New York City,” which recommended a number of ways in which the City could lead by example and conserve energy.  The Council also passed Local Law 37 of 2002, which amended the City’s Administrative Code by requiring the City to seek to purchase energy-using products that are more energy-efficient, and Local Law 30 of 2003, which amended the Code by providing more flexibility for agencies in meeting this goal.

Other strategies that can be employed as energy conservation measures include utilizing renewable energy, distributed generation, such as clean on-site power, and building commissioning.

 

VI.       Renewable Energy

According to Sterling Planet, an environmental energy company committed to creating a sustainable renewable energy market nationwide,

“[t]he U.S. relies on fossil fuels – coal, oil and natural gases – for 71% of electricity generation, with coal supplying more than half.  Nuclear power provides about 20%.  All of these energy sources draw from limited, nonrenewable resources that will eventually become either too expensive or too environmentally damaging to retrieve.  Even if these supplies were sustainable, combusted fossil fuels have considerable environmental impact, especially in terms of air quality.  On the other hand, green energy from renewable sources can help sustain and improve the planet.  Having little or no environmental impact, this energy comes from the sun, wind, plant and animal matter called biomass, geothermal energy and low-impact hydro (certified by the Low Impact Hydropower Institute).  These renewables make up about 2% of the nation’s current electric generation mix.”[33]

 

It is important to also note that “[t]he more renewable energy our nation uses, the less we’ll need energy from nonrenewable resources such as coal and oil.  And the more we’ll conserve those resources.”[34]

           

VII.     Distributed Generation

One energy efficiency and conservation alternative is the use of distributed generation.  Distributed generation is

“modular electric generation or storage located near the point of use. Distributed systems include microturbines, concentrating solar power and photovoltaic systems, wind turbines, and storage and control technologies. Distributed resources can either be grid-connected or operate independently of the grid.  In contrast to large, central station generating plants, distributed systems typically range from less than a kilowatt to tens of megawatts in size.”[35]

 

Currently, “[t]here are four main types of distributed generation applications:

Standby generation. Standby generators provide electricity during system outages until service can be restored.  This is essential at some facilities, such as hospitals, that require uninterrupted electric service.

Peak shaving
. Power costs vary hourly, depending on system demand and the availability of generation assets. Larger customers often pay time-of-use rates that convert these cost variations into daily and seasonal rate categories, such as on-peak, off-peak and shoulder rates. Distributed generation used during high-cost peak periods can reduce the overall cost of power. In turn, the electric supplier may be able to reduce the amount of power purchased during system peaks.

 

Remote/stand-alone generation. In isolated or remote applications, installing stand-alone distributed generation may be more economical than

getting connected to the grid.

 

Combined heat and power (cogeneration). In the process of converting fuel into electricity, a large amount of heat is created (on average, 2/3 of the fuel's energy content). Customers can use this heat if a power generation system is located onsite or near the customer's facility. Cogeneration increases efficiency, lowers greenhouse gas emissions and reduces energy costs. Cogeneration is best suited for moderate to high thermal use customers, such as process industries, hospitals, prisons, health clubs and laundries.”[36]

 

As a strong signal supporting the promotion of distributed generation in New York State, in April of 2003, the New York Public Service Commission (PSC) ordered the State’s major natural gas utilities “to file special delivery rates for nonresidential customers who operate their own gas-fired distribution generation (DG) units”[37] in order to provide incentives for more widespread use and lower costs of DG operators.  According to William M. Flynn, Esq., Chairman of the PSC, “As we encourage more development of efficient small power production facilities through fairer rates, we not only open up a valuable option for customers, but we also enhance our state’s economy.”[38]

 

VIII.    Building Commissioning

Another creative approach to energy conservation is the practice of building commissioning.  “Commissioning is the process of ensuring that building systems are designed, installed, functionally tested, and capable of being operated and maintained according to the owner's operational needs. Commissioning also can restore existing buildings to high productivity through renovation, upgrade and tune-up of existing systems.”[39]  The practice of Building Commissioning “is a relatively new field and standard procedures are still being defined.  Overall, the Building Commissioning process is intended to smooth the building turnover process, realize energy savings; assure indoor air quality (IAQ); improve system function, operation and maintenance (O&M); and increase thermal comfort.”[40]  The process of commissioning “starts at the beginning of the design process and culminates in the inspecting, testing, balancing and verifying that new building systems are operating properly and efficiently.”[41]  Benefits of commissioning include:

·                    Early detection of potential problems

·                    Fewer change orders

·                    Precise tune-up of HVAC systems and controls

·                    Better building documentation

·                    Trained building operators

·                    Shortened occupancy transition period

·                    Lower operation and maintenance cost

·                    Lower utility bills

·                    Healthy and comfortable work environment”[42]

 

The New York State Energy Research and Development Authority (NYSERDA) “promotes and supports better building design and construction practices such as commissioning.”[43]  Currently, NYSERDA is “offering several programs that are designed to encourage and standardize the commissioning market in New York,” such as NYSERDA’s New Construction Program, NYSERDA’s Flexible Technical Assistance, and NYSERDA’s Peak Load Reduction.[44]  “NYSERDA also provides information on the benefits of commissioning HVAC equipment in New York State.”[45]  According to the American Council for an Energy-Efficient Economy,

“Experience in New York and other parts of the country has shown that properly commissioning HVAC and control systems can result in significant energy savings and also produce other benefits such as reduced buildings operations problems and improved occupant comfort. Experience in other parts of the country show realized energy savings on commissioning projects in the range of 6% to 12% for new construction projects and 7% to 20% for existing buildings. If just half of the large commercial buildings in New York State (over 100,000 s.f.) were properly commissioned, and savings in these buildings averaged 10%, electricity savings would average approximately 1.35 billion kWh annually (plus additional natural gas and fuel oil savings).

Currently, several demand- and supply-side barriers hinder commissioning in New York. On the demand side, building owners, managers, and developers are unfamiliar with or skeptical about the benefits of commissioning, concerned about the perceived added cost of commissioning, concerned that commissioning could disrupt construction schedules, and unfamiliar with processes to best acquire quality commissioning services. On the supply side, there are only a few firms in New York with substantial commissioning experience - more need to be trained and then gain practical on-the-job experience.

The American Council for an Energy-Efficient Economy, Portland Energy Conservation, Inc., Engineering Economics, Inc., and the Building Commissioning Association are working with the New York State Energy Research and Development Authority to address these barriers through a program of education and technical assistance to both the purchasers and providers of commissioning services. The specific objectives of the project are to

 

Specific project activities include:

Expected outcomes from this project include: significant direct energy savings from the demonstration projects; increased building owner, developer, and manager understanding of and interest in commissioning; an increased number of New York firms that can provide or better-provide commissioning services; a functioning New York State/Northeast Building Commissioning Association; and initiation of efforts to consider formal state policies in New York to support building commissioning including building code and state facility requirements. In addition, given the role of New York firms as leaders in the national and international architectural and engineering communities, benefits will extend to other geographic areas. These project activities in New York will complement and add momentum to programs in other parts of the country.”[46]

“The bottom line is that commissioning improves a building’s asset value. Properly functioning buildings with reliable equipment kept in good condition are worth more than their uncommissioned counterparts. Commissioned systems and equipment retain their value longer. There is a higher demand for comfortable, healthy working space that promotes productivity. And systems that function properly use less energy, experience less downtime and require less maintenance, which save building owners money.”[47]

 

IV.       Analysis of Int. No. 374

Section one of Int. No. 374 amends the New York City Charter by adding new section 20, regarding the creation of an energy shortage contingency plan.  

Subdivision (a) of new section 20 requires that, by January 1, 2005, the Mayor assess the energy needs of the City and prepare and implement a contingency plan specifying actions to be taken to prevent and respond to shortages of energy to protect public health, safety, and welfare.  The plan shall include the following elements:

(1)   energy emergency response stages and corresponding guidelines regarding the declaration of each stage;

(2)   a communications structure by which information regarding energy emergencies and energy emergency response stages is shared with the public;

(3)   conservation strategies to reduce energy usage by City agencies and the private sector;

(4)   rules concerning energy usage and appropriate methods for enforcing such rules for each of the energy emergency response stages; and

(5)   coordination with appropriate State and City entities, such as the NYISO, the PSC, NYSERDA, the DSBS, the DEP and the EDC. 

The bill requires that the plan be submitted to the Speaker of the Council, the Public Advocate and the Comptroller immediately upon its completion.

Subdivision (b) of new section 20 requires that the Mayor review the plan required by subdivision (a) no later than January 1, 2008, and then no less often than every three years thereafter.  At those points, the Mayor shall revise the plan, as appropriate, and any such revision shall be completed within four months of any such review.

Subdivision (c) of new section 20 requires that, immediately upon completion of each review undertaken pursuant to subdivision (b), the Mayor shall submit to the Speaker of the Council, the Public Advocate and the Comptroller a revised plan and a letter explaining why revisions were made and determined to be necessary.  However, if the plan has not been revised, the Mayor shall submit a letter to that effect to the Speaker of the Council, the Public Advocate and the Comptroller, which shall include an explanation of why no revisions were made.

            Section two of the legislation states that it shall take effect immediately.

 

X.        Analysis of Int. No. 375

Section one of Int. No. 375 amends the New York City Charter by adding new section 20, which creates an energy office within the Mayor’s office.  At present, the Energy Department of Economic Development Corporation advises the City in energy policy issues. 

Subdivision (a) of new section 20 requires that, by January 1, 2005, an Office of Energy Policy is created in the Executive Office of the Mayor, which shall be headed by a director appointed by the Mayor.  

The Director of Energy Policy shall have the following powers and duties:

(1)   By September 1, 2005, develop a comprehensive energy policy for New York City, which shall be reviewed annually and revised, as necessary;

(2)   Beginning on September 1, 2005, and every two years thereafter, conduct an assessment of city-owned and leased facilities to determine their potential for energy efficiency improvements;

(3)   By September 1, 2005, develop and implement a City energy efficiency and conservation plan, which shall include measurable goals for reducing energy usage  by City agencies and a plan and implementation schedule for meeting such goals, which shall be submitted to the Speaker of the Council, the Public Advocate and the Comptroller immediately upon its completion;

(4)   Develop and implement policies and programs designed to encourage fuel and energy conservation and the use of alternatives to fossil fuels by the public and private sectors; and

(5)   Develop and implement programs to enhance public awareness of activities that will promote fuel and energy efficiency and conservation.

Subdivision (c) of new section 20 requires that, beginning January 1, 2006,  and every January 1st thereafter, the Director shall submit a report to the Mayor, the Speaker of the Council, the Public Advocate and the Comptroller, which shall detail the Office of Energy Policy’s progress in fulfilling each of the duties set forth in subdivision (b) of new section 20.  

Section two of the legislation amends subdivision 3 of section 1301 of the New York City Charter and provides that the Commissioner of Small Business Services shall have the power and the duty to assist in the planning, formulation, coordination and advancement of an energy policy for the City, rather than carrying out such functions directly.  In addition, the legislation eliminates the DSBS’ power and duty to analyze the energy and fuel needs of the City with respect to all kinds of energy, to prepare intermediate and long-range plans, goals and programs designed to meet such needs, and to establish priorities among them, since the new Office of Energy Policy would address these issues.  Finally, the legislation provides that the Commissioner of Small Business Services shall develop, implement and manage energy-related programs for economic development and other purposes in coordination with the Office of Energy Policy, rather than performing these tasks directly.

  Section three of Int. No. 375 amends subdivision (g) of section 1403 of the New York City Charter by requiring the Commissioner of Environmental Protection study, establish, organize, promote, coordinate and carry out policies, activities, projects and programs designed to encourage fuel and energy conservation, alternate sources of fuel and energy and encourage, stimulate and foster others to participate in such projects, programs and activities in coordination with the Office of Energy Policy, rather than by him or herself.

            Section four of the legislation states that it shall take effect immediately.

 

XI.       Analysis of Int. No. 381

            Section one of Int. No. 381 amends chapter two of title four of the Administrative Code of the City of New York by adding a new section 4-207 regarding a survey on clean on-site power generation for City facilities. 

            Subdivision (a) of new section 4-207 requires that by January 1, 2005, DCAS, in conjunction with the EDC and DOB, conduct a survey of all buildings owned by the City to determine whether clean on-site generation projects are appropriate for such facilities, which shall incorporate technical and financial considerations.  The term “clean on-site generation” means electric generation that is connected to the distribution level of the grid, is located at or near the intended place of use and produces fewer carbon dioxide emissions than a new combined-cycle natural-gas fired plant of similar capacity and may include cogeneration, solar power, wind power, anaerobic digesters, fuel cells and the use of microturbines. 

            Subdivision (b) of new section 4-207 requires that the survey is reviewed by the agencies listed in subdivision (a) of that section every two years and that it is updated, as appropriate, to reflect newly acquired facilities, changes in existing facilities and any circumstances that may alter the conclusions made in the original survey. 

            Subdivision (c) of new section 4-207 requires that the survey and updates shall be submitted to the Speaker of the Council within ten days of their completion.

            Section two of the legislation states that it shall take effect immediately.

 

 

 

XII.     Analysis of Int. No. 382

Section one of Int. No. 382 amends the Administrative Code of the City of New York by adding a new section 4-207 regarding the creation of a program concerning building commissioning and energy efficiency and conservation training.

..Body

            Subdivision (a) of new section 4-207 requires that, by January 1, 2005, DCAS, in conjunction with the EDC, DOB, DEP and any other appropriate agency develop and implement a building commissioning program for all City-owned buildings, which shall ensure that building systems operating within such buildings are doing so efficiently and according to their original design.

            Subdivision (b) of new section 4-207 requires that the program developed and implemented pursuant to subdivision (a) include training in energy efficiency and conservation for all building managers, building engineers, operations and maintenance staff and other appropriate City employees.  Such training shall, at a minimum, include the use of energy-efficient heating, ventilation and cooling systems, the reduction of electric lighting loads, energy-efficient building and building system upgrades, the incorporation of energy efficiency into planning processes and energy-efficient operations and maintenance practices. 

            Subdivision (c) of new section 4-207 requires that the program be reviewed every two years by the Mayor and agencies listed in subdivision (a) of that section and that it shall be updated, as appropriate.

            Subdivision (d) of new section 4-207 requires that, by January 1, 2006, and by January 1st of every two years thereafter, the Mayor shall provide a report to the Speaker of the Council, regarding the program, which shall, at a minimum, include an assessment of the building systems operating within each City-owned building, in accordance with subdivision (a).

            Section two of the legislation states that it shall take effect immediately.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Int. No. 374

By the Speaker (Council Member Miller) and Council Members Gennaro, Addabbo, Baez, Brewer, Clarke, Filder, Foster, Gentile, Gerson, James, Koppell, Liu, Lopez, Martinez, McMahon, Monserrate, Nelson, Palma, Quinn, Recchia, Reed, Sanders, Stewart, Vann and Weprin

 

..Title

A Local Law to amend the New York city charter, in relation to creating an energy shortage contingency plan.

..Body

 

Be it enacted by the Council as follows:

Section 1.  Chapter 1 of the New York city charter, is amended by adding thereto

a new § 20 to read as follows:

            §20. Energy shortage contingency plan. a. On or before January 1, 2005, the mayor shall assess the energy needs of the city and prepare and implement a contingency plan specifying actions to be taken to prevent shortages and to respond to shortages of energy to protect public health, safety, and welfare. This plan shall include, but not be limited to, the following: (1) energy emergency response stages and corresponding guidelines regarding the declaration of each stage; (2) a communications structure by which information regarding energy emergencies and energy emergency response stages is shared with the public; (3) conservation strategies to reduce energy usage by city agencies and the private sector; (4) rules concerning energy usage and appropriate methods for enforcing such rules for each of the energy emergency response stages; and (5) coordination with appropriate state and city entities, such as the new york state independent system operator, the public service commission, the new york state energy research and development authority, the department of small business services, the department of environmental protection and the economic development corporation.  This plan shall be submitted to the speaker of the council, the public advocate and the comptroller immediately upon its completion.

b. The mayor shall review the plan required by subdivision a of this section no later than January 1, 2008, and no less often than every three years thereafter, at which times the mayor shall revise such plan, as appropriate.  Any such revision shall be completed within four months of any review undertaken in accordance with this subdivision.

c. Immediately upon completion of each review undertaken pursuant to subdivision b of this section, the mayor shall submit to the speaker of the council, the public advocate and the comptroller a revised plan and a letter explaining why revisions were made and determined to be necessary, except that if the plan has not been revised, the mayor shall submit a letter to that effect to the speaker of the council, the public advocate and the comptroller, which shall include an explanation of why no revisions were made.

            §2. This local law shall take effect immediately.

DD

LS #654

5/26/04  5:58 p.m.

 

 

 

 

 

 

Int. No. 375

By the Speaker (Council Member Miller) and Council Members Gennaro, Addabbo, Baez, Brewer, Clarke, Fidler, Foster, Gerson, Koppell, Liu, Lopez, Martinez, Monserrate, Nelson, Palma, Quinn, Reed, Sanders, Stewart and Weprin

 

..Title

A Local Law to amend the New York city charter, in relation to the creation of an energy office and public awareness city-wide of energy efficiency and conservation measures.

..Body

 

Be it enacted by the Council as follows:

Section 1. Chapter 1 of the New York city charter is amended by adding thereto a

new § 20 to read as follows:

            §20. Office of Energy Policy.  a. By January 1, 2005, there shall be, in the executive office of the mayor, an office of energy policy.  The office shall be headed by a director who shall be appointed by the mayor.

            b. Powers and duties.  The director of the office of energy policy shall have the power and the duty to:

1.      by September 1, 2005, develop a comprehensive energy policy for New York city, 

which shall be reviewed annually and revised, as necessary;

2.      beginning on September 1, 2005 and every two years thereafter, conduct an

assessment of city-owned and leased facilities to determine their potential for energy efficiency improvements;

3.      by September 1, 2005, develop and implement a city energy efficiency and

conservation plan, which shall include measurable goals for reducing energy usage by city agencies and a plan and implementation schedule for meeting such goals, which shall be submitted to the speaker of the council, the public advocate and the comptroller immediately upon its completion;

4.      develop and implement policies and programs designed to encourage fuel and

energy conservation and the use of alternatives to fossil fuels by the public and private sectors; and

5.      develop and implement programs to enhance public awareness of activities that will

promote fuel and energy efficiency and conservation.

            c. Beginning January 1, 2006, and every January first thereafter, the director of the office of energy policy shall submit a report to the mayor, the speaker of the council, the public advocate and the comptroller, which shall detail the office of energy policy’s progress in fulfilling each of the duties set forth in subdivision b of this section and information concerning its implementation of each of those duties.

§2. Subdivision 3 of Section 1301 of the New York city charter is amended to read as follows:

3. With respect to energy matters, the commissioner shall have the power and duty:

            a. to assist in the planning, formulation, coordination and advancement of an [plan, formulate, coordinate and advance] energy policy for the city;

b. [to analyze the energy and fuel needs of the city with respect to all kinds of energy, to prepare intermediate and long-range plans, goals and programs designed to meet such needs, and to establish priorities among them;

            c.] to develop, implement and manage, in coordination with the office of energy policy, energy-related programs for economic development and other purposes, including, without limitation, the administration of the public utility service established by section 22-301 of the administrative code, and to exercise all of the functions, powers and duties of such public utility service; and

            [d] c. to perform such other responsibilities with respect to energy matters, including responsibilities delegated elsewhere by the charter, as the mayor shall direct.

§3. Subdivision g of Section 1403 of the New York city charter is amended to

read as follows:

g. Energy conservation and alternative fuels. The commissioner shall participate in formulating an energy policy for the city, including assessing the environmental costs and factors associated with all kinds of energy use and programs developed to meet energy needs. The commissioner shall, in coordination with the office of energy policy, study, establish, organize, promote, coordinate and carry out policies, activities, projects and programs designed to encourage fuel and energy conservation, alternate sources of fuel and energy and encourage, stimulate and [and] foster others to participate in such projects, programs and activities.

            §4. This local law shall take effect immediately.

 

DD 

5/26/04, 12:14 p.m.

LS #655

 

 

 

 

Int. No. 381

By Council Members Gennaro, Brewer, Clarke, Fidler, Gentile, Gerson, Liu, Lopez, Martinez, Nelson, Quinn, Recchia, Rivera, Vallone and Weprin

 

..Title

A Local Law to amend the administrative code of the city of New York, in relation to a survey regarding clean on-site power generation for city facilities.

..Body

 

Be it enacted by the Council as follows:

Section 1.  Chapter two of title four of the administrative code of the city of New York is amended by adding thereto a new section 4-207 to read as follows:

§ 4-207 Clean on-site power generation survey.  a. By January 1, 2005, the department of citywide administrative services, in conjunction with the economic development corporation and the department of buildings, shall conduct a survey of all buildings, structures or similar facilities owned by the city to determine whether clean on-site generation projects are appropriate for such facilities.  Such survey shall include, but not be limited to, the incorporation of technical and financial considerations.  For the purposes of this section only, the term “clean on-site generation” shall mean electric generation that is connected to the distribution level of the grid, is located at or near the intended place of use and produces fewer emissions of carbon dioxide than a new combined-cycle natural-gas fired power plant of similar capacity.  This term may include the generation of electricity through cogeneration, solar power, wind power, anaerobic digesters, fuel cells and the use of microturbines.

b. The survey required to be completed pursuant to subdivision a of this section shall be reviewed by the agencies listed in that subdivision every two years and shall be updated, as appropriate, to reflect newly acquired facilities, changes in existing facilities and any circumstances that may alter the conclusions made in such survey.

            c. The survey and updates required to be completed pursuant to subdivision a and subdivision b of this section shall be submitted to the mayor and the speaker of the council within ten days of their completion.

            §2.  This local law shall take effect immediately.

 

DD 5/24/04, 5:47 p.m.

LS # 303

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Int. No. 382

By Council Members Gennaro, Brewer, Clarke, Gentile, Gerson, Koppell, Liu, Lopez, Martinez, Quinn, Stewart and Weprin

 

..Title

A Local Law to amend the administrative code of the city of New York, in relation to the creation of a program regarding building commissioning and energy efficiency and conservation training.

..Body

 

Be it enacted by the Council as follows:

Section 1. The administrative code of the city of New York is amended by adding thereto a new section 4-207 to read as follows:

            § 4-207 Building commissioning, energy efficiency and conservation training. a. By January 1, 2005, the department of citywide administrative services, in conjunction with the economic development corporation, the department of buildings, the department of environmental protection and any other appropriate city office or agency, shall develop and implement a building commissioning program for all city-owned buildings, which shall ensure that the building systems operating within such buildings are doing so efficiently and according to their original design.

            b. The program required to be developed and implemented pursuant to subdivision a of this section shall include training in energy efficiency and conservation for all building managers, building engineers, operations and maintenance staff and other appropriate employees of the city of New York.  Such training shall include, but not be limited to, the use of energy-efficient heating, ventilation and cooling systems, the reduction of electric lighting loads, energy-efficient building and building system upgrades, the incorporation of energy efficiency into planning processes and energy-efficient operations and maintenance practices.

            c. The program required to be developed and implemented pursuant to subdivision a of this section shall be reviewed every two years by the mayor and the agencies listed in that subdivision and shall be updated, as appropriate.

            d. By January 1, 2006, and by January 1 of every two years thereafter, the mayor shall provide a report to the speaker of the council, regarding the program developed and implemented pursuant to subdivision a of this section, which shall include, but not be limited to, an assessment of the building systems operating within each city-owned building, in accordance with that subdivision.

            §2. This local law shall take effect immediately.

 

DD 5/24/04, 11:36 a.m.

LS # 303



[1] “Power Alert II: New York’s Persisting Energy Crisis”, Report by the New York Independent System Operator, March 27, 2002 (“Power Alert II”), p. 17.

[2] New York Building Congress “Electricity Outlook 2002” at www.buildingcongress.com/code/research-2002intro.htm, “NYS AG Spitzer and Business Leaders Agree That New York Needs More Electric Generation” at www.astoriaenergy.com/news/nymore.html, “Bloomberg Sees Need For More Power Plants In The City” at www.pulp.tc.html/archive_2002_7.html, and Gavin J. Donohue, “Electricity Crisis Looms in New York”, The Independent Power Producers of New York (IPPNY), November 19, 2002.

[3] Power Alert III: New York’s Energy Future,” Report by the New York Independent System Operator, May 2003 (“Power Alert III), p. 24.

[4] Id.

[5] New York Independent System Operator (NYISO), “Power Trends – New York’s Success & Unfinished Business,” A Report by the NYISO, May 2004, p. 7.

[6] Id. at p. 21.

[7] New York Independent System Operator (NYISO), Summer 2004 – NYCA & Locality Load and Capacity Outlook (as of March 30, 2004), p. 1.

[8] Id.

[9] Id.

[10] Id.

[11] See footnote 2 on page 3.

[12] NY PUB SERV, Ch. 48, Art. X; See also http://www.dps.state.ny.us/articlex_process.html.

[13] “New York City Energy Policy: An Electricity Resource Roadmap,” Report by the New York City Energy Policy Task Force, January 2004 (“New York City Energy Policy”), p. 24.

[14] Power Alert III, p. 10.

[15] New York City Energy Policy, p. 23.

[16] Id.

[17] Power Alert III, p. 11.

[18] Id.

[19] New York State Public Service Commission – The New York State Board on Electric Generation Siting and the Environment at http://www.dps.state.ny.us/articlex.htm.

[20] Article X shall “remain in full force and effect through Jan. 1, 2003, but to remain operative and continue in full force and effect with regard to applications filed on or before Dec. 31, 2002.”  N.Y. Public Service Law § 160 (McKinney 2000), Historical and Statutory Notes L.1992, c. 519 legislation. 

[21] Editorial Desk, Those Shocking Electric Bills, New York Times, August 8, 2000.

[22] “Power Alert III: New York’s Energy Future,” Report by the New York Independent System Operator, May 2003 (“Power Alert III”).  The NYISO also states that it, and its market participants, have adopted several measures intended to make the State’s wholesale markets more attractive to investors.  Merchant plants are owned and operated by independent power producers and generate electricity expressly for sale on the open, wholesale electricity market at market price.  http://www.nrc.gov/reading-rm/doc-collections/commission/secys/2001/secy2001-0207/2001-0207scy.pdf, p. 1.

[23] “New York City Energy Policy, p. 1.

[24] Patrick L. Anderson and Ilhan K. Geckil, Northeast Blackout Likely to Reduce US Earnings by $6.4 Billion, Anderson Economic Group (AEG), Lansing, Michigan, August 19, 2003, p. 1.

[25] New York City Energy Policy, p. 1.

[26] Patrick Healy, Suits and Pleas Look to Recoup Money Lost in the Blackout, New York Times, August 20, 2003; http://www.nytimes.com/2003/08/20/nyregion/20LIPA.html.

[27] Andrea Elliott, A Day to Wet a Toe or Two, but Not Much More, New York Times, August 20, 2003; http://www.nytimes.com/2003/08/20/nyregion/20BEAC.html.

[28] Andrea Elliott, Sewage Spill During Blackout Exposes a Lingering Problem, New York Times, August 28, 2003.