January 17, 2003—New York Gov. George Pataki recently announced a major statewide expansion of renewable energy. A renewables portfolio standard (RPS), will ensure that more electricity is generated from wind, biomass and other domestic, non-polluting, and renewable sources.
The American Wind Energy Association (AWEA) estimates that the Governors new initiative will also eventually generate $100 million dollars a year in income, local tax revenue, and jobs to farmers and communities that host wind power generators in New York.” Farmers earn income from leasing their “wind rights” and continue to grow crops up to the base of the turbines located on their land. The policy also will create thousands of construction jobs.
A renewable portfolio standard requires each retail electricity company to use renewable energy to supply a small percentage of the power consumed by homes and businesses. Renewable energy companies bid against each other competitively to provide the required renewable electricity supply.
The renewable portfolio standard will be established through action of the New York Public Service Commission, and will increase the percentage of electricity supplied by renewable generation to 25% by 2012. Most of the increase is expected to result from wind and biomass energy development. Renewables, including hydro-electric power, currently supply about 17% of electricity sold in NY. While some aspects of the policy will be worked out in Commission proceedings, NYs RPS is likely to resemble that established in Texas under former Governor George Bush, Jr. The Texas RPS caused a rapid increase in wind energy investment, and Texas is now the second-largest generator of wind power after California.
AWEA also estimates that the RPS policy adopted by Governor Pataki will reduce carbon dioxide emissions (a major greenhouse gas) by over 2 million tons per year. By replacing fossil generation that emits over 55,000 tons/year of acid rain and summer smog pollutants (sulfur dioxide and nitrogen oxide emissions) the RPS will help protect health and lower the cost of meeting NYs acid rain and smog control rules.
