Numerous reports and studies show that New York's energy supply will be sufficient through 2020; however, now is the time to plan for additional resources and update our aging energy infrastructure.
The Legislature's adopting and Governor Cuomo's signing of the Power NY Law is a critical step toward creating a positive business environment, fostering economic growth, and ensuring the future of the state's electric system reliability.
New York went more than eight years without a power plant siting law. While the suffering economy has led to reduced electricity demand, this new law comes at the right time as our power needs are beginning to resurge.
Not having a siting law hampered the state's economic growth and has contributed to New York being labeled inhospitable to business.
The new law creates a streamlined process for power plant siting of any fuel type within 12 months -- a guaranteed timeline that provides certainty for investment.
In addition, plants looking to repower can have their plans reviewed within six months if they fulfill certain environmental requirements.
With new Environmental Protection Agency rules to curb air emissions on the way, some plants may be subject to closure. The EPA estimates that an upcoming rule on air toxics and mercury will result in a loss of 10,000 megawatts -- or almost 1 percent of the generating capacity in the United States.
These new rules further the need for repowering, so that generators can reduce their emissions and provide more electricity sooner than new resources can be built and brought online. Building a new power plant can take a number of years and involves research and development, permitting, various approvals and financing.
Some may fear that the Power NY Act will lead to new power plants springing up all over the state, but it can allow for a simpler repowering process that will make good use of existing sites while sparing current greenfields.
Here in the Capital Region, a great example is the Bethlehem Energy Center, which was repowered in 2002 under the previous power plant siting law. BEC's owner, PSEG Power New York, LLC, received approval from the siting board within seven months to replace the existing 400-megawatt Albany Steam Station with a new 750-megawatt combined-cycle facility.
The upgrades to the site not only allowed for increased power production but also drastically reduced the intake of Hudson River water and levels of impingement and entrainment of fish and larvae. The plant has increased efficiency by 18 percent and as a result produces significantly less air emissions. The success of BEC's repowering shows that a facility can be upgraded to be more efficient, reliable and environmentally friendly.
Some opponents of the law have argued that the siting regulations take away the home rule authority of local municipalities; however, the law provides for a siting board that includes local representatives. Additionally, new or repowering proposals will not be reviewed under the new Article 10 siting process outlined in the Power NY Law until the state Department of Environmental Conservation has promulgated regulations in the areas of environmental justice, cumulative impact analysis, and a carbon dioxide emission performance standard for new generating facilities. With 12 months to complete those regulations and a six- to 12-month review period, the public has an opportunity to participate in the siting and review process.
Ultimately, this law will improve our infrastructure, enhance the reliability of the electric systems, and most importantly, attract needed jobs and investment to New York.