2012
Compiled by Tom Lake, Hudson River Estuary Program Naturalist
New York State Department of Environmental Conservation

OVERVIEW
The river simmered this week as day after day of 90+ degree air temperatures had the estuary, in many places, exceed 80 degrees Fahrenheit. While this is not atypical, the fact that it is occurring this early in the summer is surprising.

HIGHLIGHT OF THE WEEK
blue_heron7/17 - Wappinger Creek, HRM 67.5: I took a dawn walk along the Wappinger Creek and was rewarded with an encounter between a great blue heron and a blue crab. The heron grabbed the crab from the creek but seemed to have a bit of trouble swallowing it. The blue_heron_2bird threw the crab on the bank five or six times to subdue it; each time it would pick the crab up and hold it in its bill for a few seconds before throwing it again. As the heron tried to swallow, the crab seemed to get stuck in its mouth and the bird leaned forward as though to “spit” it out. After struggling with it, the great blue finally managed to swallow the crab and I watched as it slowly went down the heron's throat.
- Jamie Collins
(photos by Jamie Collins)
NATURAL HISTORY NOTES  
7/13 - Town of Poughkeepsie: We were patiently waiting and looking for the two immature eagles from NY62, but neither heard nor saw them. However, in the time we spent watching and listening, we saw about 30 bluebirds flitting along the edges of the forest. We decided it was well worth the time spent.
- Tom Lake, T.R. Jackson

7/13 - Croton-on-Hudson, HRM 35: I watched a couple of goldfinches this morning fluttering around through the flowers, chasing each other. One flew to the shasta daisies, perched on the stem up near the flower head, and the entire stalk slowly dipped to the ground as the bird wobbled to hang on. (This reminded me of that wonderful Robert Frost poem "Birches.") The entire performance was delightful except that the flower remained bent, the stalk broken by the arching.
- Robin Fox

7/14 - Ulster County, HRM 78: I was mountain-biking on Minnewaska Ridge on the Upper Awosting carriage road when I saw a large snake on the road. Unlike the black racers we see all the time, this snake was very thick with what looked like a pinched tail. I got a little closer and saw that it was a timber rattlesnake, my first one. It was about three feet long and moving very slowly across the carriage road. I assume the heat was really slowing the snake down; I gave it all the time it needed to cross the road.
- Scott Craven

7/14 - Brooklyn, New York City: Three brown pelicans were spotted and photographed from Calvert Vaux Park this morning. They were soaring over the shoreline and eventually came down in the middle of Gravesend Bay where they sat for 15 minutes before disappearing. This was a Brooklyn first for me.
- Alex Wilson

[I realize that this is bit of a stretch for the Hudson River watershed, but I just could not resist a brown pelican sighting. We do not get many. Tom Lake.]

7/15 - Staatsburg, HRM 86: Late this afternoon I saw two of our cats sitting on the front walk staring very intently at our roof. I walked outside to see what they were looking at: There were three black vultures walking around on our roof. They wandered around for a bit and then all three hopped up to the top of our chimney and perched there for a while. It appeared that they were a mated pair and their fledgling, as one of the birds was lacking the light tip on its beak and had wisps of light gray down still sticking out from between its wing feathers.
- David Lund

7/15 - Norrie Point, HRM 85: Despite the stifling heat, sixteen anglers showed up to participate in our monthly fishing program. The action was slow throughout the three hours, with 28 fish of five species. Elizabeth Athanasiou and Steve Bryun each caught a ten-inch white perch as the highlights. Monarchs, tiger swallowtails, and mourning cloaks danced around us most of the time and an immature bald eagle was perched out on Esopus Island. The river was 81 degrees F.
- Ryan Coulter, Tom Lake

7/15 - Piermont, HRM 25: An American avocet, a wading shorebird normally seen on the coast, and infrequently in our area at that, was spotted on Piermont Pier.
- Evan Mark

7/15 - Upper Bay, New York Harbor: I led an Audubon tour around Governor's Island today. We saw all four common gull species (ring-billed, herring, laughing, black-backed), as well as double-crested cormorants and a few fly-by least sandpipers. The highlight was the thriving breeding colony of common terns on two unused piers on the Buttermilk Channel side of the island. We counted at least 34 chicks on one pier, and 20 on another. The chicks looked to be 2-3 weeks old, with downy bodies but well-grown flight feathers. They were in little clusters of twos and threes, the typical clutch size. The strangest sight was three baby terns sheltering from the sun in an abandoned old phone booth on the pier. The adults were coming and going with small fish in their bills.
- Gabriel Willow

[Common terns have been breeding on Governor's Island for at least three summers. In June 2011, I led some bird walks on Governor's Island as part of a science festival and the terns were there then. I also heard that they were there in 2010 and perhaps earlier. Joe DiCostanzo.]

7/16 - Ulster Park, HRM 85: I heard my first katydids today, at least two weeks early.
- Bill Drakert

7/16 - Millbrook, HRM 82: The morning after the deluge (strong thunderstorms dropped two inches of rain), tiger swallowtails, monarchs, mourning cloaks, and other butterflies were looking to every puddle and pool for a drink.
- Tom Lake, T.R. Jackson

7/16 - Putnam Valley, HRM 55.5: While outside in the early twilight just after sundown, I counted 17 barn swallows lined up on the ridge line of the roof and nine more still flying around. Most were immatures. They all tucked into the basement stairwell roost as the fireflies were starting. What was especially nice was that some would fly within ten feet of me and none would make an alarm call. Quite a delight!
- Nancy P Durr

7/17 - Albany, HRM 145: The air temperature reached 99 degrees F today, a record high for the date.
- National Weather Service

7/17 - Brooklyn, New York City: We launched a small boat just before sunrise near the headwaters of the Gowanus Canal and passed through fuel slicks, possibly from tugs pushing a work barge or sandhogs building the new flushing tunnel for the canal, and entered into Gowanus Bay. We came upon ten-foot circles of water in which the bay churned with fish, probably menhaden being pursued by a predator. As the sun rose, a black-crowned night heron fled its perch from a pier adjacent to the Amerada Hess fuel terminal. This is the same pier where a juvenile minke whale attempted to beach itself in 2007. Common terns darted about amidst a crowded field of orange-necked barn swallows.
- Robert Sullivan

7/17 - Manhattan, HRM 5: The air temperature reached 97 degrees F today, just one degree off the record high for the date.
- National Weather Service

7/18 - Poughkeepsie, HRM 75.5: We electro-shocked a 125-foot-long stretch at the mouth of the Fall Kill below the first falls. Three passes yielded 69 eels 103-699  millimeters [mm] long. Other species included blue crab, crayfish, rock bass, red-breast sunfish, bluegill, brown bullhead, and - surprisingly - a ten-inch-long brown trout. We had an odd occurrence when a groundhog fell out of a tree and landed with a loud "whump" just a few feet from where we were recording data about the fish. It sat there for a minute and then slowly waddled off.
- Chris Bowser, Sarah Mount, Zoraida Maloney

7/18 - Hathaway's Glen, HRM 63: It was not yet 5:00 AM, barely first light, still an hour from sunrise, and the air already had a warm, humid closeness (the day would later reach 96 degrees F). The beach at Hathaways's Glen is the terminus of a small, cold water brook that spills down the fall line into a short run to the river. The inland reach of the river is only a couple of hundred feet in length. The river shallows just outside the brook were 80 degrees. Less than 200 feet upstream, in a small pool in the shade of cottonwoods and box elders, the water was 71 degrees.
Despite not finding a single blade of submerged aquatic vegetation, we still caught a net full of fish. Among them were many young-of-the-year fishes such as Atlantic needlefish (100 mm), blueback herring (44-46 mm) alewives (62-68 mm), striped bass (44-52 mm), spottail shiners (30-32 mm), hogchokers (42-44 mm), and white perch (20-44 mm). Others in the seine included red-breast and pumpkinseed sunfish, adult spottail shiners (105-110 mm), tessellated darters, and male banded killifish in full breeding regalia.
- Tom Lake, A. Danforth

[Young-of-the-year aptly describes the multitude of recently hatched fauna found in the Hudson River each summer and fall. The progeny of shad, river herring, striped bass, white perch, blue crabs, shrimp, jellyfish, and many others, are present by the millions. So many references are made of their presence that scientists abbreviate the phrase to YOY. Tom Lake.]

7/18 - Hudson Valley: In 16 of the last 21 days, the air temperature has reached 90 degrees F or more in the Hudson River Valley.
- National Weather Service
SUMMER 2012 NATURAL HISTORY PROGRAMS  
Note: There may be times this summer, through August, when the weekly Hudson River Almanac is delivered on a more staggered schedule. However, all weeks will be covered.

July-October 2012 Canoe Trips with NYSDEC's Hudson River Estuarine Research Reserve
Paddle with NYSDEC staff naturalists and learn about tide marsh ecology, Hudson River research, and challenges facing estuarine habitats. These educational canoe trips will occur at selected sites along the Hudson River Estuary and are provided free for the general public. For information: 845-889-4745 x109.
To register go to http://www.eventbrite.com/event/386439852F

August 11 - 9:00 AM to Noon
Family Fishing Day. For all ages; free use of rods, reels and bait. Norrie Point Environmental Center, Staatsburg [Dutchess County]. Wheelchair accessible. Free. For information: 845-889-4745 x109 orlake@sunydutchess.edu
HUDSON RIVER MILES 
The Hudson is measured north from Hudson River Mile 0 at the Battery at the southern tip of Manhattan. The George Washington Bridge is at HRM 12, the Tappan Zee 28, Bear Mountain 47, Beacon-Newburgh 62, Mid-Hudson 75, Kingston-Rhinecliff 95, Rip Van Winkle 114, and the Federal Dam at Troy, the head of tidewater, at 153. The tidal section of the Hudson constitutes a bit less than half the total distance – 315 miles – from Lake Tear of the Clouds to the Battery. Entries from points east and west in the watershed reference the corresponding river mile on the mainstem.

TO CONTRIBUTE YOUR OBSERVATIONS OR TO SUBSCRIBE  
The Hudson River E-Almanac is compiled and edited by Tom Lake and emailed weekly by DEC's Hudson River Estuary Program. Share your observations by e-mailing them to trlake7@aol.com . To sign up to receive the E-Almanac (or to unsubscribe), send an email message to hrep@gw.dec.state.ny.us and write E-Almanac in the subject line.

Weekly issues are archived at http://www.dec.ny.gov/lands/25611.html . The DEC website's search engine can find species, locations, and other data in the archives.

The Hudson River Estuary Program has an e-newsletter! Stay connected by subscribing to RiverNet, which covers projects, events and actions related to the Hudson and its watershed.www.dec.ny.gov/lands/76018.html

Discover New York State Conservationist - the award-winning, advertisement-free magazine focusing on New York State's great outdoors and natural resources. Conservationist features stunning photography, informative articles and around-the-state coverage. For a free, no-obligation issue go tohttp://www.dec.ny.gov/pubs/conservationist.html
Copies of past issues of the Hudson River Almanac, Volumes II-VIII, are available for purchase from the publisher, Purple Mountain Press, (800) 325-2665, or email purple@catskill.net
 

dolphinCompiled by Tom Lake, Hudson River Estuary Program Naturalist

New York State Department of Environmental Conservation

 

OVERVIEW 

There was a wide range of impressive events this week. Among them was the fledging of the NY62 eagle nestlings, a bottlenose dolphin in the Hudson River off Manhattan's west side, and a summer solstice that arrived with record-setting air temperatures.

 

HIGHLIGHT OF THE WEEK  

6/15 - Town of Hyde Park, HRM 82: It was nearly dusk when I spotted a skunk running along a brush line. I thought maybe the skunk had been hit or mauled because it looked as though it was running sideways and it had a "rolling" motion that seemed almost wave-like. Luckily, it was a mother skunk with six to eight babies running alongside, jumping on top of and in front of her and causing the different movements and motions. I watched them go about fifty feet then disappear into the woods.

- Michael Paul

 

NATURAL HISTORY NOTES  

6/15 - Town of Poughkeepsie: Day 80. The nestlings in NY62 were stubbornly holding their perches. When life gets too easy for them, that is to say ample food and adequate shelter, they are reluctant to leave. The adults were not around today while I was there but no doubt slip in and out a couple of times early and late with food.

- Tom McDowell, Tom Lake

 

6/15 - Fort Montgomery, HRM 46.5: The youngsters from the local mockingbird nest have fledged; they're buzzing around with stubby little tails and they only seem to be able to go in a straight line. I hope the local peregrines don't get them.

- Scott Craven

 

6/16 - Town of Poughkeepsie: Day 81. The nestlings were still clinging to the nest tree. They have also become increasingly vocal as they grow impatient with the sporadic food deliveries. Both of them were looking out to the river and calling every 30-40 seconds. Ultimately, hunger is the strategy the adults use to inspire the nestlings to become fledglings.

- Tom Lake

 

6/16 - Lake Hill, HRM 100: The wild turkeys have scooped out a sandy depression in our backyard where they like to take dust baths, presumably to help get rid of mites and other parasites. Today, my daughter and I watched as a cottontail rabbit hopped over to the depression and also started taking a dust bath. I had never before seen a rabbit do that. It was funny to watch the bunny lying with its white belly up in the air and its feet kicking up plumes of dust. I wondered if they it do it for the same reason as the turkeys.

- Reba Wynn Laks, Bayla Laks

 

6/16 - Crugers, HRM 39: We visited Ogilvie's Pond at dusk in hopes of seeing the great blue heron. Sure enough, we spotted it among the spatterdock on the far side of the pond. As we watched it through binoculars we were amazed to see four little masked faces right behind it. As the heron stood, frozen in its spot, two of the raccoons joined the others that were romping around in the brush behind. The raccoons and heron seemed comfortable with their arrangement.

- Dorothy Ferguson, Bob Ferguson

 

6/16 - Yonkers, HRM 18: We spotted a foot-long Atlantic needlefish swimming close to the surface at the confluence of the Sawmill River and the Hudson. The carp have been taking advantage of the fish ladder incorporated into the lower waterfall of our daylighting project on the Sawmill River. Eight carp in the 16-20-inch range were seen this week in the upper pool. The only way they could have gotten there was by using the fish ladder.
- Bob Walters, Dave Cassidy, the Science Barge crew

 

6/17 - Connelly, Ulster County, HRM 91.5: I heard louder than usual pecking noises at the cat food bowl and looked out to see two black vultures on my front porch eating dry cat food (blue jays, starlings and "ladderbacks" - red-bellied woodpeckers - all seem to be fond of it as well). They polished off the cat food and then hung around until I made too much noise at which point they flew off to land on my neighbor's roof. It was a surprise and up close encounter (four feet away), with my cats watching them nearby on the lawn.

- Lauren Swartzmiller

 

6/17 - Town of Poughkeepsie: In mid-morning the NY62 eagle nestlings, 82 days after hatching, became fledglings. At 11:15 AM, I followed the "passive" bird as it made its maiden flight - a short circle over the edge of a field - before clumsily crashing, unharmed, into the canopy of a tall white pine 200 feet north of the nest. I missed the "assertive" bird's first flight, but it was longer - across a wide field at least 600 feet to some riverside hardwoods where I lost it in the greenery. I could hear the adult(s) in the distance. It was a successful launch; I'm sure the adults have enough experience to handle things now.

- Tom Lake

 

[This mated pair (NY62) has been together for thirteen years and has now fledged eleven nestlings over twelve nesting seasons. The average time to fledge has been 77 days. The longest was 85 days in both 2002 and 2011 and the earliest was 69 (2006).Given our collective observations over the last 82 days, we suspect that the "assertive" nestling that fledged first is a male and the "passive" nestling that followed is a female (these are roles that will change dramatically over the next few years). While she seems less assured now, her sense of caution will serve her well throughout her life. Tom Lake. Photo by Tom McDowell.]

 

6/17 - Croton Point, HRM 34-35: We conducted three days of beach seining both for education and for stocking the Clearwater display aquaria at the Great Hudson River Revival. The most unusual catch was young-of-the-year spot (Leiostomus xanthurus), a saltwater panfish, not unusual in itself, but in the fact that we caught dozens of them, 60-80 millimeters [mm] long, all on the south shore of the point. The catch on the north shore was less impressive, with the star being a beautiful adult menhaden (bunker), 14 inches long. Salinity was about 6.0 parts per thousand on the south side of the Point.

- Eli Schloss, Chris Bowser, Beth Roessler, Dave Bragaitis, Danielle Laberge, Steve Stanne.

 

[Spot are a sporadic visitor to the Hudson estuary. Their colloquial name, Lafayette, honors the Marquis de Lafayette; his 1824 visit to New York City to be honored for his role on behalf of the colonies during the American Revolution coincided with unusually large numbers of these small drum in New York Harbor and the lower Hudson estuary. The drum family also includes freshwater drum, black drum, northern kingfish, croakers, weakfish, and silver perch. Most of them have highly specialized swim bladders that serve as sound-producing organs, hence the family name. Tom Lake, C. Lavett Smith.]

 

6/17 - Manhattan, HRM 8.0-2.0: At 2:00 PM, a dolphin was spotted swimming in the Hudson River off Harlem. Two hours later, it was seen again south near Chelsea. After looking at photos, our best guess is that it was the offshore variety (morphotype) of bottlenose dolphin.

- Kim Durham, Riverhead Foundation

 

[The bottlenose dolphin (Tursiops truncatus), often caricatured (see the Miami Dolphins NFL football team), is a marine mammal commonly seen "porpoising" along ocean beaches of the mid-Atlantic from late spring through early fall. Dolphins are rare in the estuary, however, and animals that do appear here may be disoriented. The Almanac has recorded a few bottlenose dolphin occurrences:

 

- In February 1996, Tim Long took photos from the Tappan Zee Bridge of an adult and a juvenile

bottlenose dolphin swimming upriver.

- On May 25, 1997, at Turkey Point (river mile 98), a 340 lb, eight-foot-long female bottlenose dolphin was rescued by NYSDEC and taken to the Aquarium for Wildlife Conservation in Brooklyn.

 

- On November 3, 2008, an offshore bottlenose dolphin was spotted in Peekskill Bay (river mile 43) and followed, through observations, upriver to Kingston (river mile 91) a week later. On November 26, the eight-foot-long dolphin was found dead hear Rhinecliff (river mile 88) confirming our suspicions that it had been ill.

 

To report a sighting of a healthy, sick, alive or dead marine mammal or sea turtle, contact The Riverhead Foundation at their emergency 24-hour Stranding Hotline phone number: (631) 369-9829. For more information on The Riverhead Foundation for Marine Research and Preservation, go to:http://www.riverheadfoundation.org/. Tom Lake.]

 

6/18 - Bearsville, Ulster County, HRM 101: It was mid-morning and I was entertaining two boys with cell phone photos of a local mama bear and her cub, when the five-year-old boy pointed out a huge black bear at the edge of his yard!

- Krista Munger

 

6/18 - Croton-on-Hudson, HRM 35: I looked out the window today to see three woodchucks ravaging my sugar snap peas! I tore out of the house hollering "Shoo, Shoo you horrid rodents!" It was probably not a permanent deterrent, but I sure scared them away. The nasty creatures tore down the pea vines, ate most of the peas and, while they were at it, the lettuce, parsley, cilantro, and arugula. Grrr and boo hoo.

- Robin Fox

 

6/19 - Town of Poughkeepsie: The entire NY62 family was there midday: the two adults and two fledglings. The female spent all afternoon in the nest tree while the male, after delivering a fish, came and went. The two fledglings were showing much ease with their new talents, flying from tree to tree and then returning to the nest for meals.

- Terry Hardy

 

6/19 - New Hamburg, HRM 67.5: I spotted the same large turtle on our driveway again today (see 6/13); she was sitting right in the center of the drive. Upon closer inspection I could see that she was a map turtle. Her carapace was 9-10 inches in length. Her plastron confirmed that she was a female map turtle. I moved her to the side of the drive and shortly thereafter she was lost in the underbrush.

- David Cullen

 

6/19 - Jersey City, NJ: It is my pleasure to go to the street when the "eyases" fledge [nestling peregrine falcons]. The three falcon nestlings were out on the ledges of the building on June 10. Six days later, they had almost all fledged, but not without tragedy. One fledgling was found dead on June 15 at 10 Exchange Place. This was most likely a collision with a window in the building. We verified two young birds on June 16, but only one a day later. We were treated to a 200 mph stoop by the adult female peregrine from the top of 101 Hudson. She caught a pigeon 30 feet overhead and circled low as the bird was big and heavy. She prepped it and delivered it to an already stuffed fledgling on 101 Hudson Street.

- Bonnie Talluto

 

6/20 - Lake Hill, HRM 100: In early evening, my friend Dan Goldman came upon a group of bears outside of his home. They were on the ground when first sighted - the cubs walking about on their hind legs and mama seated on her haunches. As mama rose up, the cubs went up a tall pine in the yard. She was patrolling the periphery of the lawn when I, unwittingly, approached the house and she saw me. As I was a long way from any shelter but the house, I made for the door in a wide sweep around her and she allowed me to pass. Shortly thereafter she was heard tipping the "bear-proof" garbage cans out on the road while the cubs remained in the tree. She returned an hour later to the bottom of the tree and the cubs came down. Then they all bounded away down the bank into the Beaverkill and disappeared. In the morning I saw tipped cans for more than a mile down Route 212.

- Krista Munger

 

6/20 - Town of Hyde Park, HRM 82: Bobcat sightings were a regular occurrence for about a decade; every year or so we even saw a mother and her kittens. But over the last couple of years, they've disappeared. Tonight, at dusk, I saw one running with a turkey poult in its mouth. I saw a wild turkey hen ten days ago with a good flock of at least ten poults. She now has just one left.

- Michael Paul

 

6/20 - Town of Poughkeepsie, HRM 75: The air temperature reached 96 degrees Fahrenheit today, a record high for the date. Combined with high humidity, it felt even hotter - the "heat index" was 106 degrees.

- National Weather Service

 

6/20 - Kowawese, HRM 59: The interval between first light and dawn can be such a beautifully serene time along the river. The Hudson Highlands were cloaked in haze, promising a sultry summer day. This was the summer solstice and the air temperature would later climb to 96 degrees. The river felt cool (76 degrees) as we hauled our seine and, as we beached the net, the meshes danced in the wet sand. We had caught a dozen hand-sized sunfish, half pumpkinseed and half redbreast. All were males in breeding colors and they took our breath away - the colors were exquisite. All had turquoise piping on their gill covers and, on the pumpkinseed, they extended over much of their head. The redbreast sunfish were flouting their fiery red-orange undersides and narrowly won the beauty contest.

- Tom Lake, A. Danforth

 

6/20 - New York City: On the first day of summer, the air temperature reached 98 degrees Fahrenheit, a record high for the date. The old record was 96.

- National Weather Service

 

6/20 - Newark, NJ: The air temperature reached 98 degrees Fahrenheit today, a record high for the date. The old record was 97.

- National Weather Service

 

IF YOU FIND A DEAD STURGEON 

If anyone comes upon a dead sturgeon either floating in the Hudson River or washed up on the shore, please notify the NYS DEC Region 3 Fisheries Unit by calling 845-256-3071 (Kathy Hattala) and 845-256-3073 (Amanda Higgs).

We need the following information:

- Specific location.

- Condition: really rotted or a fresh kill?

- Signs of trauma and, if present, where on the fish.

- Estimate (or measure) its total length (nose to tip of upper tail fin) or whatever is left of the carcass.

- Look for any external tags, usually a yellow streamer at or near the base of the dorsal fin; a second external mark might be that the left pelvic fin has been clipped off.

- A digital photo of the entire fish and any injury; a photo of the head and mouth (from below) to verify identification.

Leave the fish where it was found. Possession is not allowed by federal law. Please e-mail your information and photos to the Hudson River Fisheries Unit: r3hrf@gw.dec.state.ny.us

 

SUMMER 2012 NATURAL HISTORY PROGRAMS 


June 24 - 1:00 to 4:00 PM

Family Fishing Day. For all ages; free use of rods, reels and bait. Norrie Point Environmental Center, Staatsburg [Dutchess County]. Wheelchair accessible. Free. For information: 845-889-4745 x109 orlake@sunydutchess.edu

June 24 - 1:00 to 3:00 PM

Third annual public “shadless”shad bake at Riverdale Riverfest, Mount St. Vincent College, Bronx. Free samples of planked and smoked steelhead (rainbow) trout served at 2:00 PM. Questions: Tom Lakelake@sunydutchess.edu

July 15 - 10:00 AM to 1:00 PM

Family Fishing Day. For all ages; free use of rods, reels and bait. Norrie Point Environmental Center, Staatsburg [Dutchess County]. Wheelchair accessible. Free. For information: 845-889-4745 x109 orlake@sunydutchess.edu

July 19 - 2:00 PM

The Genesis of the Hudson Valley: From the Uplands to the River, from the Ice Age to Us.

Tom Lake, NYSDEC Hudson River Estuary Program Naturalist. Town of Ballston Community Library, Burnt Hills, NY [Saratoga County]. Free. Questions: 518-399-8174 x5.

July 19 - 7:00 PM

Hudson Valley Bald Eagles: Our Greatest Ecological Recovery. Tom Lake, NYSDEC Hudson River Estuary Program Naturalist. Hadley-Luzerne Public Library, Lake Luzerne, NY [Warren County]. Free. Questions: 518-696-3423.

July 21 - Fourth Annual Hudson River Day & Great Hudson River Fish Count

Numerous river and riverfront community events will span the length of the Hudson River Estuary from New York to Albany. Sponsored by NYSDEC Hudson River Estuary Program, Hudson Valley Greenway, and many other partners. For additional details, information on coordinating a Hudson River Day program, or participating in scheduled events contact Candi Sterling cmsterli@gw.dec.state.ny.us or visithttp://www.hudsonriverdayny.org/Home.aspx

At the following sites, river educators will be offering seining programs as part of the Great Hudson River Fish Count, sharing their results to get a snapshot of fish distribution in the estuary on River Day. If Almanac observations have made you curious about the Hudson’s fish life, these family friendly programs offer a great way to wade in and learn more. Programs are free unless otherwise noted.

Yonkers - Habirshaw Park [Westchester County], 3:00-5:00 PM. Vicky Garufi, Beczak Environmental Education Center. For info: (914)377-1900 x12.

Piermont - Flywheel Park [Rockland County], 12:00 noon-2:00 PM. Margie Turrin, Laurie Seeman, Gregg Mercurio, Lamont-Doherty Earth Observatory and Sparkill Watershed Alliance. For info:mkt@ldeo.columbia.edu or 845-729-8535

Cold Spring - Little Stony Point, Hudson Highlands State Park [Putnam County], 4:00-6:00 PM. Tom Lake, Hudson River Estuary Program Naturalist with Putnam-Highlands Audubon Society and Constitution Marsh Audubon Center and Sanctuary. For info: trlake7@aol.com

New Windsor - Kowawese Unique Area [Orange County], 9:00-10:00 AM. Michelle Diamanti, Hudson Highlands Nature Museum. Members of the Museum pay $5 adults, $3 children ages 3-12; non-members $7 adults, $5 children. For info: 845-534-5506 x204 or www.hhnaturemuseum.org

Beacon - Long Dock Park [Dutchess County], 9:30-10:30 AM. Susan Hereth, Scenic Hudson. For info, contact Anthony Coneski at aconeski@scenichudson.org or 845-473-4440 x273.

Staatsburg - Norrie Point Environmental Center [Dutchess County], 12 noon. Chris Bowser, Hudson River National Estuarine Research Reserve. For info: 845-889-4745 x104.

Kingston - Kingston Point Beach [Ulster County], 11:30 AM. Steve Noble, City of Kingston Parks and Recreation/Forsyth Nature Center. For info: 845-481-7336 or snoble@kingston-ny.gov

Athens - Cohotate Preserve [Greene County], 6:00-8:00 PM. Liz LoGuidice, Cornell Cooperative Extension of Greene County. For info: 518-622-9820 x33.


HUDSON RIVER MILES 
The Hudson is measured north from Hudson River Mile 0 at the Battery at the southern tip of Manhattan. The George Washington Bridge is at HRM 12, the Tappan Zee 28, Bear Mountain 47, Beacon-Newburgh 62, Mid-Hudson 75, Kingston-Rhinecliff 95, Rip Van Winkle 114, and the Federal Dam at Troy, the head of tidewater, at 153. The tidal section of the Hudson constitutes a bit less than half the total distance – 315 miles – from Lake Tear of the Clouds to the Battery. Entries from points east and west in the watershed reference the corresponding river mile on the mainstem.

 

TO CONTRIBUTE YOUR OBSERVATIONS OR TO SUBSCRIBE  

The Hudson River E-Almanac is compiled and edited by Tom Lake and emailed weekly by DEC's Hudson River Estuary Program. Share your observations by e-mailing them to trlake7@aol.com . To sign up to receive the E-Almanac (or to unsubscribe), send an email message to hrep@gw.dec.state.ny.us and write E-Almanac in the subject line.

Weekly issues are archived at http://www.dec.ny.gov/lands/25611.html . The DEC website's search engine can find species, locations, and other data in the archives.

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The New York State Energy Solutions Road Map

Executive Summary on Demand-Side Measures for Governor Andrew Cuomo

Introduction

Prepared by the

Northern Westchester Energy Action Consortium1

www.nweac.org

March 12, 2012

 

The Northern Westchester Energy Action Consortium (NWEAC)2 presents this Energy Solutions Road Map to foster concrete discussions about securing our state’s future economic development.

 

We believe our state’s energy policy must be a significant positive force in our economic development. Further, we have specific recommendations about changes in our state energy policies that–collectively, when adopted–will help unleash the potential of our state to drive private investment in economic development for decades.

 

From our close work with municipalities, state agencies, the US Department of Energy, and many private sector organizations, we reach several important conclusions.

 

First, many stakeholders in our economy share common objectives, such as (a) cost-effectively reducing consumption of fossil-fuels, while (b) retaining system reliability and (c) enhancing the contribution of renewable supply sources.

 

Second, however, few stakeholders have offered specific legislative and regulatory levers that will clearly accomplish these outcomes.

Third, several proven policy tools are available with abundant success elsewhere that New York can and should import or improve for statewide adoption.

The Energy Solutions Road Map is our Consortium’s effort to identify energy policies that do work elsewhere and show great promise for New York State. For policies that have been implemented in other states, New York has the opportunity to develop and adopt state enabling legislation or regulation that borrows from all the lessons learned elsewhere.

 

Our goals


To qualify and estimate the job creation and cost savings impacts of clean energy technology deployment on the demand side (energy efficiency, intelligent control of consumption and microgrid) and on the supply side (distributed generation and energy storage).

 

To delineate specific policy and regulatory tools that will achieve ubiquitous energy efficiency,

 

1 Contact: NWEAC Chair, Herb Oringel, herb@oringel.com 2 The Northern Westchester Energy Action Consortium (NWEAC) is a collaboration of 15 municipalities who banded

together in 2009 in order to share expertise and resources in pursuing reduction of greenhouse gas emissions and of future energy expenses. Our Consortium has been very successful in launching innovative programs for cost reductions for homeowners and for our local governments. For more on the Mid-Hudson Energy Solutions Road Map, see: http://www.nweac.org/2011/10/26/the-mid-hudson-regional-energy-solutions-road-map/

New York State Energy Solutions Road Map


Executive Summary on Demand-Side Measures nweac.org page 1control, storage and distributed generation, while enabling deep penetration of renewable energy

 

To enhance grid reliability and energy security using competition and local community aggregation/empowerment.

 

To motivate private sector funding to finance the demand side opportunities and engage energy consumers to achieve efficiency and savings.

 

 

Summary of our recommendations 

 

We strongly recommend the state pursue the following policy changes to unleash the market power of energy efficiency and demand response.

 

1. Community Choice Aggregation: Community choice aggregation (CCA) is a market-based energy solution that is revenue supported, not reliant on taxpayer subsidies, and a procurement framework that allows municipalities to procure and produce electricity to meet the collective load of their local residents and businesses.

 

2. Energy Efficiency Certificate: Energy Efficiency Certificate (EEC) is a private-sector incentive structure that requires all private-sector energy sales entities to buy efficiency certificates–in proportion to the amount of energy they sell.

 

3. Demand Response: Demand Response (DR) programs pay utility customers to temporarily reduce electricity consumption in response to supply conditions. Implementing three policy changes will greatly increase participation in DR programs statewide: (1) allow aggregation, (2) lower eligibility thresholds, and (3) establish floor prices for demand side resources.

This suite of policies is discussed in more detail below. They are mutually self-reinforcing and unlock the potential for significant private sector investment in our state’s energy security.

 

Part 1: Solution 1: Energy Efficiency Certificates for Base and Peak Load Reductions


The average home or business buys 20 to 30% more energy than it needs, due to inefficient heating, cooling and lighting systems, sub-standard insulation, inadequate air sealing, and aging appliances, pumps, and motors.

 

Benefit


Energy efficiency is the single most effective driver for economic development for two reasons: (1) efficiency measures often pay for themselves while reducing future operating costs, and (2) efficiency implementation is a proven jobs-creator with immediate results.

A well-designed Energy Efficiency Portfolio Standard (EEPS) will drive private investment in raising energy efficiency.

An effective EEPS needs more than an aspiration to increase efficiency and reduce future demand. It needs a requirement to do so. Creating a tradable Energy Efficiency Certificate as central the EEPS program will ensure private sector investment for achieving efficiency results.

 

Barriers


Many cost-effective energy efficiency upgrades are not being implemented. Why?

 

1. Efficiency financing is expensive. Creating commercial financing transactions is time- consuming, because:

 

(a) There is no asset to securitize in an upgrade project; (b) There is no common metric for a unit of efficiency achieved;

 

(c) The value of a unit of efficiency is unclear in discussions between energy services company and consumer; and

 

(d) Decision-makers lack a clear and trusted information source regarding the financial merits of an upgrade.

 

2. Motivation among end-users and building owner is diluted, because:

 

(a) Owner and tenant interests are often not conflicted between who pays for the upgrade and who pays for the utilities, a.k.a. the “split incentive” problem;

 

(b) Owner and tenant behavior is further misaligned between who controls the energy consumption and who pays for upgrades or utilities; and

 

(c) Finally, turnover in tenants and building owners leads to disincentives for long term investments.

 

3. Current energy efficiency incentive benefits and terms are confusing and remain a challenge to pursue, because:

 

(a) Multiple agencies and utilities offer consumers what appear to be overlapping programs or differing incentives for similar measures.

 

(b) Accessing incentive programs can be quite laborious, often requiring expertise the consumer may not be willing to pay for up front in the absence of a clear fiscal return; and

 

(c) Resulting incentives can be unpredictable or lower than expected, further discouraging participation.

 

4. Professional capacity in the energy efficiency service sector, while growing, remains challenged by several factors, including:

 

(a) Performance–such as completing high quality upgrades on time and on budget–remains uneven across the sector;

 

(b) The ability to communicate effectively with consumers as potential clients about upgrades and incentives remains uneven across the sector; and

 

(c) Labor force training, while improving, continues to lag behind the growth needs of the sector.

Four steps can and should be taken to overcome the barriers above. These steps collectively create an Energy Efficiency Certificate as a asset of a reasonably stable value with built-in market of private sector participants.

 

Step 1 of Solution 1: Empower local communities with Community Choice Aggregation

 Adopt enabling legislation that allows New York’s municipalities to create “opt- out” energy purchase contracts for all consumers of electricity.


In states; like New York, where electricity is deregulated and semi-deregulated, community choice aggregation (CCA) provides municipalities with access to the wholesale power market to meet their desired electricity supply portfolio, while still having the existing utility provide delivery and billing services. CCA works very effectively in California, Illinois, Massachusetts, Ohio, and Rhode Island.3

 

3 For more on CCA, visit: www.leanenergyus.org and www.galvinpower.org/sites/default/files/Community_Choice_Aggregation_Report_Final_1-4-11.pdf

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Community choice aggregation is:

 

1. A market-based energy solution that is revenue supported and not reliant on taxpayer subsidies; and

 

2. A procurement framework that allows municipalities to procure and produce electricity to meet the collective load of their local residents and businesses.

 

3. A form of public power in which communities choose power sources, but distribution is left to the incumbent utilities.

Specifically, under CCA, a single organization aggregates the choices by consumers to gain scale on price, achieve operational efficiencies, and be accountable to the state and consumer about the energy sources and prices.

 

Across all the states that have established CCA programs, we find the following common features:

 

CCA is enabled by state legislation.

CCA is an “opt out” program, meaning all local end-users are automatically enrolled, yet may opt out.

Local governments are the decision-makers regarding electricity supply and local program optimization (local renewable generation, feed in tariffs, local efficiency initiatives, local job creation).

Utilities remain as the delivery and billing partner.

Existing state regulations and environmental mandates apply, such as renewable portfolio standards, greenhouse gas reductions.

Taxpayers do not fund CCA programs. CCA programs are entirely funded by the existing end- users of the electricity

Successful CCA programs make local organizations much more aware of their own energy consumption patterns. Local CCA programs deal first hand with thousands of retail customers of energy. This new local knowledge leads directly to insights into achieving savings via energy demand reductions. CCA will empower localities to achieve unparalleled energy efficiency by, allowing localities to create their own efficiency funds that complement other funds, attracting private investment to create new efficiency upgrades and renewable power generation projects.

 

Step 2 of Solution 1: Create fungible assets with an Energy Efficiency Certificate program


Adopt an Energy Efficiency Certificate Program that creates a market, defines buyers and sellers, and establishes a tradable commodity with a reasonably stable value based on verifiable efficiency measures.


An Energy Efficiency Certificate is:

 

1. A private-sector incentive structure that requires all private-sector energy sales entities to buy efficiency certificates–in proportion to the amount of energy they sell; and

 

2. A commodity that may be created and sold by private or public sector entities that undertake efficiency measures.

An Energy Efficiency Certificate Program enables private sector organizations that undertake efficiencies to sell the credit for that efficiency to the entities that buy efficiency certificates. These commodities may also be called “white certificates.” Such efficiency certificates would be in addition to existing efficiency incentives parceled out with Public Service Commission approval.

 

New York State Energy Solutions Road Map

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EEC programs currently operate in Italy, the United Kingdom, Connecticut, Pennsylvania, and Nevada, and are expected soon in implemented in India and other nations in Europe.4


In an EEC program, the government sets a requirement for energy efficiency achieved by a date certain. The law generally defines who will be responsible for covering the cost of energy efficiency achieved. The marketplace then incorporates these definitions into its rules. Anyone who sells electricity to consumers has to buy electricity from power plants in order to serve the consumers they sell to. In addition to the electricity they buy, they have also to buy energy efficiency certificates.5


A truly effective Energy Efficiency Certificate Program has yet to emerge in the United States, but based on lessons learned elsewhere, New York could and should lead the way.

In sum, the steps include the following: 1. Create compliance buyers of efficiency certificates by establishing a New York EEC program,

refined by lessons learned from the existing EEC programs.6 2. Create peak demand reduction certificates, akin in structure to Peak Demand Reduction markets

in New England and in the Mid-Atlantic and Midwest (PJM Interconnect) states.7


The above steps create an asset–the Energy Efficiency Certificate–as well as common metrics to assess and verify the efficiency achieved. A good EEC program will overcome tenant/owner misalignments and split incentives by creating a fungible, transparent, valuable asset that survives the transfer of a property or tenancy.8

 


Step 3 of Solution 1: Provide a floor value for the certificates in the market

Use a state agency, for example, NYSERDA, as the collection, measurement, distribution and verification entity to fund minimal feed-in tariffs for energy efficiency and demand reduction.

 

Our third recommendation addresses an important factor often missing in other states’ programs: setting a floor value for the energy-related certificates.

From the perspective of state government, an Energy Efficiency Certificate program is the most cost- effective approach to achieving energy efficiency for both base and peak load demand. However, such market structures have created undesirable volatility in pricing.9 Such instability tends to lower private investment volume.

How does the state attract significant levels of private sector investment in a new efficiency certificate market?

The new step is to establish and fund a small tariff base for energy efficiency and demand reduction.

 

4 In our view, each of these existing EEC markets has one or more serious flaws that could be easily addressed in the careful design of a New York EEC market. 5 For example, if an efficiency standard is adopted requiring utilities to procure 5% of electricity sales from efficiency resources such demand reduction or combined heat and power, for every 100 energy units procured buyers of that energy will have to also purchase 5 energy efficiency certificates, each of which represents an upgrade to a facility that saves one unit of energy each year.

6 Beyond electric reduction, efficiency certificates could be a powerful tool if applied to heating oil consumption. We strongly recommend an EEPS be established for heating oil to enable efficiency certificates for reductions in heating oil consumption. 7 In our view, design nuance would address a. underpayment in each of these markets and b. over and under-estimates of demand relief provided in future years, in each of these markets.

8 The certificate remains with the property owner, if the property owner has not sold the certificate. If the property owner has sold the certificate, it remains with whoever bought it. 9 For example, the near collapse of the solar renewable energy credit (SREC) market in New Jersey is at least in part due to lack of minimum on the value of the commodity being traded.

 

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1. Establish minimal feed-in tariffs for energy efficiency and demand reduction, which creates a floor value for the certificates.10


2. Fund this new feed-in tariff by means of a small efficiency surcharge on all electricity bills, as is already done for the RPS/SBC programs in New York.

 

3. Use NYSERDA, or another state agency, as the collection, measurement, distribution and verification entity for the feed-in tariff.11

These feed-in tariffs should provide additional value for a certificate, creating a floor for the value of each energy efficiency certificate. This floor will encourage low-cost, private sector financing of upgrades and deeper participation in the EEC market. Conversely, lack of any floor will discourage private investment.

 

Step 4 of Solution 1: Simplify ownership rules for the certificate


Sort out the competition between rebates and market forces by ensuring that any government rebate does not require the facility owner to cede ownership of private market benefits (e.g. certificates) to the state or utility.


Currently, New York State (NYSERDA) and utility incentive contracts (whether rebates or performance payments, etc) contain “fine print” clauses that retain the energy credit for the state or utility. The state or utility then retires the credit upon completion of the incentive payment.

 

This claim against value of any future certificate market creates a real concern for any knowledgeable consumer or energy service provider.12

If New York establishes an energy efficiency or renewable energy certificate market, these same ownership restrictions in an incentive contract would create competition between the public and private sectors and would confuse all consumers.

 

Step 5 of Solution 1: Support local initiatives with coordinated, state-wide policy


Allow existing finance activities by New York State’s agencies to include investment in finance products being created by the energy efficiency investment the state already supports and promotes.


New York State has invested wisely and heavily in numerous energy efficiency programs that we

10 A Feed-in Tariff (FIT) generally refers to fixed per-unit payments, usually paid by the government for renewable energy generation. Here, we apply the same concept to fixed payments for units of energy efficiency documented and achieved, funded likely through a surcharge on all electricity bills. This approach differs from NYSERDA’s current rebate structure in that it requires no bureaucratic cost share or subjective burden to prove “additionality” to get the dollars. Subjective additionality is driven by good intentions, but is poor public policy. Instead, we can ensure that public funds drive truly additional efficiency by designing rigorous requirements for what constitutes efficiency achieved (e.g. efficiency beyond current code). Feed-in tariffs are often considered to be mutually exclusive of certificate markets (an exception is Sweden) and are often criticized by many who feel they over-pay to achieve renewable generation. Our approach is to provide minimal feed-in tariffs for efficiency, accomplishing the best of all worlds: (1) A cost effective application of the concept; (2) Assured private sector investment in efficiency; and (3) The flexibility to also introduce a certificate market, which enables cost-effective achievements of far more ambitious goals.

11 NYSERDA has a robust energy research capacity and serves to measure and verify actual efficiency performance for the state’s existing incentive programs. 12 Imagine this entirely plausible nightmare scenario: After New York adopts the Solar Jobs Bill, solar RECs rise in value to $300/MWh, spurring a jump in nearly cost-free photovoltaic installations that do not need further state incentives. Meanwhile, recently contracted NYSERDA projects (e.g. under PON 2156) cost those building owner scores of millions of dollars to install, yet leave these owner/investor ineligible to sell the RECs produced by that installation, because the state owns and retires them.

 

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believe will bring very positive results in saving building owners money and reducing energy demand.

However, a valuable opportunity exists for New York State to “put its money where its mouth is” here.

For example, Property Assessed Clean Energy (PACE) programs will continue to be established in New York. Such PACE programs will source capital from both traditional and non-traditional funders.

 

We recommend that New York State’s own agencies be authorized to invest in purchases of locally sourced PACE finance products. After all, these products will be originated through NYSERDA’s accepted underwriting standards and upgrade measures.13


Specifically, the Energy Improvement Corporation will roll out a pilot PACE program this year in Westchester County using federal and state funds.14 However, achieving real scale with such programs will require much more capital and produce a much greater public benefit than heretofore achievable.

The above five interlocking steps are strategies that ensure that all our sectors–public, for-profit (service, technology, financial), faith-based, institutional, community, and not for profit–are fully engaged with unified goals and standards, aligned incentives, and a common message about the value of energy efficiency to our economy.

 

Part 2: Solution 2: Demand Response: Enhancing local reliability and economic development

Demand Response (DR) programs pay utility customers to temporarily reduce electricity consumption in response to supply conditions.


When the electric delivery system is under stress or prices reach a specific threshold, DR program participants are asked to reduce their energy use. Energy storage or local and distributed low emissions generators (e.g. cogeneration) can also be activated at these moments of system stress or high prices.

 

Benefit


As demand response resources, energy storage and distributed generation are more localized than central generation. They tend to inject more economic activity into local economies. It is also often more cost-effective to pay local resources for demand reduction, than it is to pay centralized generators to increase production on fairly short notice.

In other words, grid operators find local resources valuable because they ensure grid reliability at the lowest possible cost. Reliable local resources also reduce the need to build new power plants.

 

Barriers

 

New York State has many pieces in place for a vibrant market structure to support local demand response resources. However, the New York Independent System Operator (NYISO) has spotlighted that participation in our demand response programs is limited primarily to large customers.

NYISO finds that current minimum thresholds for participating in the demand response programs

13 NYS PACE Enabling Legislation (GML 119 ee, ff, gg) already mandate Upgrade and Renewable Energy improvements be approved by NYSERDA

14 For more on Energy Improvement Corp, visit: www.energyimprovementcorp.org

 

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limit the ability of existing or proposed distributed generation and energy storage resources to participate in the state’s most valuable local reliability markets.

As a result, tens of thousands of New York’s business owners are currently ineligible to participate in the most valuable demand response markets, especially in the downstate region.

 

 

Step 1 of Solution 2: Change some rules governing current Demand Response Programs

Some minor changes in the current demand response rules would ensure New York offers the most vibrant market for local efficiency resources in the world.


We need no new legislation to improve participation in our existing demand response programs. The New York Independent System Operator (NYISO) and Public Service Commission (PSC) are the key regulatory decision-makers for demand response policy.

Specifically, we recommend changes in the existing rules governing our DR programs, as follows:

 

1. NYISO rules and PSC rulings should allow customers (and even communities) to aggregate their efficiency resources together to reach size thresholds dictated by the NYISO for all electricity market products. (See Community Choice Aggregation discussion above.)

 

2. The NYISO should lower size thresholds for all electricity market products to expand the pool of eligible participants.15

 

3. New York State (e.g. the NYISO or the legislature) should establish floor prices for demand side resources to attract private investment in building out energy control and storage capabilities.

 

In fact, regarding items 1 and 2 above, the NYISO has undertaken significant positive changes over the last five years that already move us toward allowing aggregation and lowering size threshold, with more rule changes coming over the next two years. These changes stem mainly from compliance with federal regulatory rulings, primarily Order #719 from the Federal Energy Regulatory Commission.

 

As with the need for a floor value for the Energy Efficiency Certificate, discussed above, the Demand Response resources will also need an established floor price per product in order to provide a stable business case for private sector investment in demand response technology.

 

Step 2 of Solution 2: Invest in local infrastructure for smart grid demand response programs

Extend NYSERDA’s existing Demand Response policy of subsidizing the cost of DR meter for large facilities to DR meters located in distribution loop with aggregated demand among smaller customers.


Even as the NYISO and PSC have begun to expand the pool of electricity customers eligible to access the electricity markets, NYSERDA has not quite caught up yet. When NYSERDA started to fund about 80% of the cost for DR meters for larger facilities, this incentive sparked the DR participation among large buildings.

 

Installing smart meters in every home or business would be quite expensive. It would be much less costly to provide every community with access to data from one or two sophisticated meters per

 

15 Participation in demand response is limited to customers who meet or exceed a minimum size of facility requirement, size of shed commitment requirement, or total shed load aggregated together in order to be eligible for DR. If the first and second minimums are eliminated, and the third is reduced to, say, 100kW for every DR product, a very large number of medium to smaller electricity customers could participate in DR programs.

 

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distribution loop. NYSERDA could subsidize some portion of the cost of these distribution loop meters to allow a business district of small to medium electricity customers to participate the demand response markets.

Such an investment by the state in local microgrid meters will allow and enable the following16:

1. Private enterprise will create collectives of small customers who will annually earn scores (perhaps hundreds) of millions of dollars by intelligent management of their energy consumption.

2. Private investment of hundreds of millions (perhaps billions) annually will finance new installations and upgrades of energy management systems, energy storage systems and distributed generation in homes and in small and medium commercial facilities.

3. High technology and service firms will migrate to New York, bringing jobs, primarily in energy storage, energy management systems, as well as in smart metering technology, installation, and maintenance.

4. The increase in the state's dynamic smart grid resources will allow for far deeper penetration and integration of intermittent renewable generation–primarily wind and solar–while enhancing regional and local grid reliability.

Next, we will discuss the potential impact on economic development of the solutions recommended above.

 

 

Part 3 Potential Outcomes & Impact on Jobs and the Economy


1. Reasonable Goals


We have built goals based on assessments of available cost-effective energy efficiency and demand response (FERC report, NYISO study of potential resources by sector). We use estimates of total cost-effectiveness, based on conservative assumptions of cost-effective upgrade opportunities. We have devalued the total projected benefit through estimating completion of only a percentage of these cost-effective opportunities.

Our proposed policy mix achieves 100% of the targeted energy efficiency, by definition. But not all the available cost-effective energy-efficiency projects will be completed. Therefore, the final mix of efficiencies will be achieved through an unknown mixture of cost-effective projects supplemented by other projects driven by personal commitment and comfort needs.

In our view, this mix is fine, because:

 

1. When a private individual funds an upgrade that is not cost effective, that upgrade is funded from disposable income and the investment clearly creates intangible benefits that are valuable to that private individual;

 

2. The cost-effective initiatives are clearly beneficial to society; and 3. All upgrades add value to our statewide base of facilities and housing.

While further quantitative assessment of the precise cost-effectiveness of this policy mix would prove valuable, we find that:

 

1. Directionally, the bulk of market data indicates that impacts and cost/benefits are clear; 2. There is no way to determine the precise cost-effectiveness, because this mix of policy will

 

16 For more on microgrids: see Hyams Mea (2010) Microgrids: an assessment of the value, opportunities, and barriers, to deployment in New York State. NYSERDA 10675 www.nyserda.ny.gov

 

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produce known energy efficiency with an unknown mix of upgrade projects that are determined by thousands of free market choices; and

 

3. Though the magnitude of job and economic gains are not yet precisely quantified, benefit to cost ratios for these policies are clearly better than for alternatives.

 

2. Implementing the above policy and regulatory levers, by 2024, we could reasonably and profitably require:


1,000 heretofore unplanned MWs of demand reduction in Zones G, H, I & J by 2018;17

4,000 heretofore unplanned gigawatt-hours (GWhs) of efficiency in Zones G, H, I & J by 2018;

3,000 heretofore unplanned MW's of demand reduction statewide by 2021 & 6,000 MW's reduced by 2024;

12,000 heretofore unplanned gigawatt-hours (GWhs) of efficiency state-wide by 2018, & 24,000 by 2024;

Building envelope upgrades to cost-effectively achieve 10% reduction in fossil fuel consumption, statewide.

 

3. These achievements will create:18


More than 70,000 jobs for one year by 2018;

More than 13,000 permanent jobs by 2018;

More than 200,000 jobs for one year, state-wide by 2021;

More than 30,000 permanent jobs by 2021;

More than 300,000 jobs for one year, state-wide by 2024;

More than 50,000 permanent jobs by 2024; and

Private sector investment in New York State’s energy efficiency infrastructure of more than $6 billion by 2018, more than $18 billion by 2021, and more than $40 billion by 2024.19


4. Additionally, the Mid Hudson region could lead the way by creating:


1,000 MWs of additional capacity demand response resources with 93%+ reliability, dispersed into every distribution loop, by 2018, in Zones G, H, I, J, & K;

500 MWs of reserves demand response resources with 93%+ reliability, dispersed into every distribution loop, by 2018, in Zones G, H, I, J, & K;

200 MWs of regulation demand response resources with 99%+ reliability, dispersed into every

 

17 We focus our projections on the NYISO control area zones in the Mid-Hudson Economic Development Region and New York City area, Zones G, H, I, J & K, because these zones will experience more growth than upstate zones over next decade. 18 Assumption: Each MW reduced injects $1.2 million annually in electric spend into the economy, creating 11 permanent jobs per million dollars saved annually. The 11 permanent jobs per million saved annually, is an extrapolation of the DOE’s direct jobs calculator that assesses the direct jobs value of $1 million spent, one-time: 11 one-year jobs. The capital cost of a MW saved is projected to be $6.6 million, assuming the average pay-back for energy reduction measures is 5.5 years. More conservative estimates of average pay-back will raise the estimate of jobs created as well as of investment attracted, while paybacks of up to ten years and beyond still justify the cost-effectiveness of efficiency and control investments.

19 This reflects the very conservative assumption that pay backs for energy efficiency will be reduced because low hanging fruit has been achieved. This is conservative because it assumes little or no technology development in the efficiency industry.

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distribution loop, by 2018, in Zones G, H, I, J, & K; and • Through private investment of more than $500 million.

 

5. Private investment in demand response initiatives would create:


Regional annual earnings and savings of more than $125 million;

More than 1,300 permanent jobs; and

More than 4,000 one-year jobs.

The policy initiatives related to energy efficiency and demand response that we propose cost nothing on net. They are simply transfers of dollars from one set of stakeholders to others.

 

6. Redistribution; a cost/benefit qualitative analysis and discussion


The policy initiatives related to energy efficiency and demand response that we propose cost nothing on net. They are simply transfers of dollars from one set of stakeholders to others.


Community Choice Aggregation will create hundreds of millions of dollars of annual electricity per unit savings for every economic sector throughout the state. CCA will also bring hundreds of millions of dollars of private investment in renewable generation (likely more upstate than down), fed by better utilization of federal tax credits, coupled with the tax benefits that the municipal sector enjoys.20

An Energy Efficiency Portfolio Standard (EEPS)–coupled with minimal feed-in tariffs for energy efficiency as a foundation for the value of an Energy Efficiency Certificate–will results in overarching transfer from sales of fossil fuels to disposable income in consumers’ pockets. The cost of fossil fuel is primarily exported outside the state, as is a substantial portion of power plant profits. Some of the retained disposable income will also be spent outside the state, but most of those retained dollars will be recirculated within New York.

Further, an EEPS does have some redistributive impact on ratepayers through the following individual effects:

 

Impact 1: An EEPS will create a slight per unit cost increases for all consumers from the efficiency benefit surcharge, just occurs now with the RPS/SBC surcharge.

 

Impact 2: This slight increase will be offset by per unit cost decreases for all consumers: When total consumption goes down, clearing prices go down due to the favorable changes in the supply/demand balance.

On net, an EEPS might create a transfer from those consumers who do nothing to enhance energy efficiency to those consumers who do something to upgrade their facility. On the other hand, it might not cost consumers anything, because the cost of Impact 1 could be more than offset by the savings from Impact 2.

Consumers who do upgrade their facility will certainly benefit. In addition to the offsetting impact outlined above, consumers who upgrade will see additional benefits:

 

Impact 3: Consumers who become more energy efficient will see total bill decreases, due to fewer units of energy purchased,

20 NWEAC is currently quantifying estimated savings, through a request for price quotations, to be issued to a subset of state electricity suppliers. Renewable investment market size is conservatively estimated based on proprietary internal business plans of suppliers focusing on CCA states. These could be better quantified through direct and formal NYS government contact with these business entities, contributing to a government study.

 

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Impact 4: Consumers who become more energy efficient will see earnings beyond savings, due to their being able to sell energy efficiency white certificates (under an effective EEPS program in New York).

If all consumers benefit from demand-side initiatives, then who pays?

The losers would be the centralized, fossil fuel power plants and their fuel suppliers from out of state and overseas. These traditional power plants would see the following impacts:

 

Impact 5: Decreased margins due to lower clearing costs (see #2 above); and

 

Impact 6: Decreased unit sales due to energy efficiency.

A heating oil EEPS would have slightly different impacts on oil suppliers. Oil companies would lose unit sales, but would transfer much of their focus into revenue-enhancing services that provide building efficiency. These building efficiency upgrades would add jobs and better utilize the maintenance sector of the state economy.

 

Democratizing "local reliability" markets–with community choice aggregation and microgrid metering for distribution loops–will benefit primarily small commercial and residential consumers of electricity, as larger consumers are already taking part in some of these markets.

Slightly more of the earnings in these markets will go to downstate consumers, because the ancillary services electricity markets are more lucrative downstate. However, we project these resources, and therefore earnings, will be located throughout the state.

Also, an inexpensive, clean and well-distributed ancillary services market will enable for supply-side policies that will benefit upstate more than downstate. A deeply committed renewable portfolio standard will create a powerful wind industry presence upstate.

 

New York State Energy Solutions Road Map

Executive Summary on Demand-Side Measures

nweac.org page 12

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Appendix: Some New York energy trends


Some energy demand facts and trends


Overall, the baseline forecasts for New York’s statewide energy demand have fallen from 2009 through 2011, largely due to the economic slowdown.21

Demand is less predictable today, perhaps due to global warming: 3 out of the last 4 summers have experienced “one summer in ten” levels of heat and humidity.

New York State is well behind in its 2015 energy efficiency goals, with some experts projecting that we will fall as much as 40% short of our 15% by 2015 goals.22

 

Some energy supply facts and trends


Centralized generation capacity is the current business-as-usual condition of our state and region’s energy system.

We lose two-thirds of the energy used in New York State for electricity generation due to being consumed by energy conversion itself or lost during transmission and distribution.

Only one-third of the energy we use generating electricity becomes power we can sell to end-users. Electricity generation is the state’s single largest consumer of energy. Since 2000, electricity rates in New York State have risen by 24 to 33%.23

 

Conclusions about current energy supply and demand trends

 

Siting large, centralized supply side power plants is enormously expensive and time consuming, with no guarantee to ratepayers of delivering cost-effective solutions.

Siting flexible, demand side solutions is both less expensive and less risky over the long-term than siting large- scale supply side plants.

Further, the short deployment cycle for flexible, demand side solutions means those investment produce results more quickly.

Energy efficiency gives New York the most impact for the least cost.

Public funding of demand side solutions funnels 100% of the costs and benefits back into the rate base. Public funding of supply side solutions does not.

The next 2 to 3 years are a good period for deploying any changes in either supply or demand, before demand increase accelerates again, especially in the more congested downstate electricity markets.

Our best current options for demand-side solutions are those require success in meeting a goal, rather than mere aspiration toward a goal: under the EEPS plan outlined above, each unit of energy efficiency will produce a certificate with predictable value.

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21 Conversely, the NYISO Gold Book 2011 shows very modest increases in the Mid‐Hudson zones of about one half of one percent per year between 2011 and 2021. These areas are reached through the limited transmission lines in the Mid‐Hudson region. For these reasons, the Mid‐Hudson region may be a good site for pilot projects for new energy policies.

22 Source: NYISO 2011 Gold Book; NYSERDA Patterns and Trends 2011 www.nyserda.ny.gov/Programs/Energy-Prices- Supplies-and-Weather-Data/Energy-Statistics.aspx 23 Source: NYISO 2011 Gold Book; NYSERDA Patterns and Trends 2011 www.nyserda.ny.gov/Programs/Energy-Prices- Supplies-and-Weather-Data/Energy-Statistics.aspx

 

New York State Energy Solutions Road Map

Executive Summary on Demand-Side Measures nweac.org page 13

 
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