New York State Energy Resources

1. New York State Energy Resources Marcus Doyle David Marye Mike Marziani Jimmy Perez

2. New York State • Uses of Energy • Sources of Energy • Environmental Issues / Externalities • Energy Mix • Future Projections

3. Uses of Energy

4. N.Y. vs Rest of the U.S.

5. Residential Use New York Residential Energy Usage, 2000

6. Industrial Use New York Industrial Energy Usage, 2000

7. Sources of Energy http://www.nyserda.org/sepsection1-1.pdf (page 5) http://www.eia.doe.gov/emeu/states/sep_use/eu/use_eu_ny.html Overall Energy Use Electricity Only

8. Natural Gas • Natural gas is primary source of electricity generation • New York is the fourth largest consumer of natural gas in the United States • New York has 315 billion cubic feet of natural gas reserves, 5,913 producing gas wells and 27,787 million cubic feet (mcf) of production in 2001. This production level is far less than the total natural gas consumption of 1,171,158 mcf in 2001 • All new planned generation (15,000 MW) is gas fired

9. Accounts for 28% of electricity production Second only to natural gas Most plants built in the early 1970’s No imminent license expirations Indian Point facility is one of the most controversial plants in the U.S. Nuclear Energy

10. Coal • New York does not have any coal mining operations or any known reserves • State has 16 coal electricity plants and 4000 MW of generating power • 8,955 thousand tons of coal were imported to New York in 2002 • Total usage represents only 1% of the coal used in the U.S. each year • Use in electricity generation relatively stable, all other uses declining

11. 4th Largest Petroleum consumer in the U.S. Single largest source of energy used in the state Ranks 28 of 31 of oil producing states Decreasing reliance over time in all but transportation Last major oil find was 1981 Latest oil production #’s were 452 bpd Petroleum http://www.nyserda.org/sepsection3-6.pdf (page 11)

12. Renewable Energy

13. Renewable EnergyHydroelectric • New York has 4440 MW of hydroelectric generating power • Uses nearly twice as much hydroelectric power than the average U.S. state • Largest user in the Northeast • 75% capacity comes from two large projects • 2160 MW Niagara Power Project • 912 MW St. Lawrence -Franklin D. Roosevelt Power Project

14. Coal Regulation • State and Federal Regulation • NY Acid Deposition and Control Act aimed at reducing SO2 emissions • Title IV of the federal Clean Air Act (CAA) Amendments of 1990 • Resulted in 50% reduction in SO2 from 1980 levels • Limits summer NOx emissions for coal plants - reductions of up to 75% from 1990 levels required for 2003 • Governor’s Acid Deposition Reduction (ADR) Program should result in regs requiring electricity generation plants to reduce SO2 emissions to 50% of that required by the federal CAA Amendments of 1990

15. 2002 New York State Energy Plan • Implemented and administered by the NY State Energy Research and Development Authority (NYSERDA) • Goals include: • Reducing primary energy use per unit of Gross State Product (GSP) 25% below the 1990 level by 2010 • Increasing renewable energy use as a percentage of primary energy use 50% by 2020 (from 10% to 15%) • Reducing greenhouse gas emissions 5% below 1990 levels by 2010 (10% below by 2020) • Increasing energy resource diversity in electricity generation

16. Promotion of Renewables • Executive Order 111 – Issued by Gov. Pataki to increase purchase of energy generated from specific renewable technologies • Goal of 10% of their energy requirements by 2005, and 20% by 2010 • Net Metering Law - Allows residential elect. customers to offset electricity use with power from renewable energy. • Provides 25% tax credit for purchase and installation cost of a qualifying renewable system • New York Environmental Disclosure Program- PSC requires electricity providers to include "environmental disclosure labeling” • Provides information about the percentage mix of fuels used to generate electricity sold to a given customer

17. Other Regulations • “Cap and trade” programs - patterned after existing programs • Regional strategy to reduce CO2 emissions from power plant • Based on commitment of 10 NE states • Set-Aside Program – • Funds set aside to provide financial incentives/awards for: • End-use electric energy efficiency measures • Renewable energy projects • Installation of control devices on fossil fuel-fired electricity generation sources • Greenhouse Gas (GHG) Task Force • Comprised of business, community, and government leaders. • Advise the Gov. on actions and policies to achieve GHG reductions across all sectors of the economy • Position NY as a national leader on these issues

18. Energy Mix http://www.nyserda.org/trends2003.pdf

19. Energy Mix • Disproportionately high nuclear, hydroelectric and natural gas • Moved from dependency on coal and oil to natural gas • Reduced petroleum as a share of primary energy from 52% in 1988 to 39% in 2002 • Only 11% of total energy requirements are met by resources produced within the State

20. Energy Mix Influences • Scarcity of coal • New natural gas generation facilities • Transportation price • Environmental concerns with hydrocarbon-based energy and clean energy incentives • Retirement of some coal and oil plants • 85% of its petroleum imports from foreign sources.

21. Energy Mix Effectiveness • 4% of the nation’s total primary energy consumption; 7% of the nation’s population. • Sulfur Dioxide (3,000 tons/sq. mile), Nitrogen Oxide (3,000 tons/sq. mile), and Carbon Dioxide (1.4 million tons/sq. mile) emissions rank 24th, 27th and 21st amongst states, respectively • Lack of coal – blessing in disguise?

22. Future • 2002 New York State Energy Plan • Natural gas growth of 1.5% annual through 2020 • Reduction in the use of coal (-1.0%) and petroleum (-.07%) • Increasing renewable energy use as a percentage of primary energy use 50%, from 10% of primary energy use currently, to 15% by 2020