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Energy Committee Update:
State of the State 2018

January 4, 2018
Staff Contact: Darren Suarez

The following is a brief aggregation of Governor Cuomo’s 2018 State of the State initiatives related to energy matters. Very few of the proposed initiatives will require legislation (divestment) and only a few will may need regulatory changes (offshore wind, energy storage). The blurbs below are largely taken directly from the SOS and do not necessarily reflect the position of The Business Council or its members. After receiving input from membership, The Business Council will formulate an appropriate response to each initiative, provided that The Business Council has and continues to oppose mandated divestment.  

Smart Street Lighting

The State of the State indicated that the New York Power Authority will lead an interdisciplinary and interagency initiative with the New York State Energy Research and Development Authority, the Department of Public Service, the Department of Environmental Conservation, the Department of State and other State agencies to offer a one-stop-shop solution for municipalities to replace inefficient streetlights with LEDs and provide technical expertise on design, procurement and construction, along with financing and guidance on Internet of Things (IOT) devices that allow streetlights to function as part of a Smart City. NYPA will also explore modifications to existing street lighting utility tariffs in order to allow for greater cost savings from lighting conversions. 

Energy Storage

Governor Cuomo announced an initiative to deploy 1,500 megawatts of energy storage by 2025. To achieve this goal and build on the recently signed Energy Storage Deployment legislation (A.6571), Governor Cuomo is directing state energy agencies and authorities to work together during 2018 to generate a pipeline of storage projects through utility procurements, to advance regulatory changes in utility rates and wholesale energy markets, to incorporate storage into criteria for large scale renewable procurements, and to reduce regulatory barriers. The Governor also announced a commitment of at least $200 million from the NY Green Bank for storage-related investments to help drive down costs and to strategically deploy energy storage to where the grid needs it most. Finally, the Governor is directing NYSERDA to invest at least $60 million through storage pilots and activities to reduce barriers to deploying energy storage (e.g., permitting, customer acquisition, interconnection, financing costs).

Offshore Wind

Governor Cuomo has committed New York State to procure at least 800 megawatts of offshore wind power between two solicitations to be issued in 2018 and 2019, resulting in enough clean, renewable energy to power 400,000 New York households. These solicitations will be the first in a set schedule to reach the 2.4 gigawatt by 2030 target. In addition, Governor Cuomo is directing the NYSERDA to invest $15 million in clean energy workforce development and infrastructure advancement to train workers including offshore wind construction, installation, operation, maintenance, design and associated infrastructure. To attract private investment in port infrastructure and supply chain activities, Governor Cuomo is also directing NYSERDA to work with Empire State Development and other State agencies to determine the most promising public and private offshore wind port infrastructure investments. 

Divestment

Governor Cuomo’s called upon the Common Fund to cease all new investments in entities with significant fossil fuel-related activities. In addition, Governor Cuomo announced that his office will work with the Office of the Comptroller to create an advisory committee of financial, economic, scientific, business and workforce representatives as a resource for the Common Retirement Fund to develop a de-carbonization roadmap to invest in opportunities to combat climate change and support the clean tech economy while assessing financial risks and protecting the Fund. The Governor called upon the Fund to dedicate a meaningful portion of the Fund's portfolio to investments that directly promote clean energy.

ZEVs

Governor Cuomo will launch Charge NY 2.0 in 2018, which will drive the build-out of EV charging infrastructure and promote ZEV-capable roadways and destinations across New York. Under Charge NY 2.0, New York State will:

Repair Puerto Rico

To aid in the redevelopment Puerto Rico, the Puerto Rico Energy Resiliency Work Group was created. The work group is composed of experts from the New York Power Authority, Long Island Power Authority, ConEdison, PSEG, Edison International, Electric Power Research Institute, Smart Electric Power Alliance, U.S. Department of Energy, and national labs. The project, known as Build Back Better: Reimagining and Strengthening the Power Grid of Puerto Rico, created a blueprint for rebuilding a more resilient, sustainable grid hardened to withstand future storms. In 2018, New York State will help implement the blueprint to create a new energy system for Puerto Rico that sets a global example for cost, resilience, sustainability, and customer engagement and empowerment. 

 

Darren Suarez | Director of Government Affairs
The Business Council of New York State, Inc.
111 Washington Avenue, Suite 400 | Albany, NY 12210
Tel. 518.465.7511 ext. 206| Fax 518.465.4389 
darren.suarez@bcnys.org | www.bcnys.org