SUFFOLK COUNTY LEGISLATURE

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SUFFOLK COUNTY LEGISLATURE

• BUDGET REVIEW OFFICE
• Prepared for State University at Farmingdale
• Earth Day Event April 21st 22nd
• Subject Energy Awareness
• Prepared by Joseph Schroeder, Energy
  Specialist

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Changing the Culture of Energy Use

• ENERGY POLICY FOR COUNTY OWNED FACILITIES
• (August 2002)
• A self-directed energy policy focused on
  significantly increasing the energy efficiency of
  existing County owned buildings
• ENERGY STAR LABELING PROGRAM
• Res. 351-03 (May 2003)
• Promotes emissions reduction by requiring the
  County to purchase or lease available Energy
  Star labeled products

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Suffolk County Legislation Renewable Energy

• SOLAR PHOTOVOLTAIC SYSTEM
• Res. 189-05 (March 2005) Support Development
  of End Market
• Install a 40 kW solar photovoltaic system in
  partnership with the New York State Energy
  Research and Development Authority (NYSERDA).
  Purpose To build public awareness of renewable
  energy technologies. (Police HQ and Yaphank Farm)
• PROMOTING RENEWABLE POWER DEVELOPMENT
• Res. 236-05 (April 2005) Support Development
  of End Market
• This resolution requires the County to
  participate in local utilitys (LIPA) Green
  Choice Program
• PURCHASING GREEN POWER
• Res. 349-05 (April 2005) Support Development
  of End Market
• The County established a goal to purchase 25 of
  it annual energy use from non-polluting renewable
  energy technologies, by 2010
• ELECTING AN EXEMPTION FROM SALES AND COMPENSATING
  USE TAXES FOR RECEIPTS FROM RETAIL SALES OF, AND
  CONSIDERATION GIVEN OR CONTRACTED TO BE GIVEN
  FOR, SOLAR ENERGY SYSTEMS EQUIPMENT
• Res. 956 05 (December 2005) Support
  Development of End Market
• Receipts from sales of and consideration given
  or contracted to be given for, or for the use of,
  property and services exempt from state sales and
  compensating use taxes pursuant to subdivision
  (ee) of section 1115 of the NEW YORK TAX LAW,
  shall also be exempt from sales and compensating
  use taxes imposed in this jurisdiction

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Stationary and Mobile Emission Reductions

• PILOT PROGRAM UTILIZING BIO-DIESEL
• Res. 1286-04 (December 2004) Support
  Development of End Market
• Intended to reduce tailpipe emissions from
  County fleet vehicles and create a local demand
  for bio-diesel and other alternative fuels.
• COUNTY POLICY TO ENCOURAGE THE LOCAL MANUFACTURE
  OF BIO-DIESEL
• Res. 529-05 (June 2005) Support Development of
  End Market
• To promote the local manufacture of bio-diesel
  in order to assist the proliferation of its use
  both as a motor fuel and stationary plant fuel.
• REQUIRING THE USE OF BIO-DIESEL FUEL IN THE
  SUFFOLK COUNTY FLEET TO REDUCE EMISSIONS, IMPROVE
  AIR QUALITY AND PROMOTE THE USE OF ALTERNATIVE
  FUELS
• Res. 555-07 (June 2007) Support Development of
  End Market
• Requires the systematic conversion of the entire
  Suffolk County diesel fueled vehicle fleet to B20
  fuel operation by no later than December 31, 2008
  (Extended to December 31, 2009).

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Recent Suffolk County InitiativesTo Create a
Sustainable End Market Promote Self-Reliance

• IMPLEMENTING LEADERSHIP IN ENERGY AND ENVIRONMENT
  DESIGN (LEED) FOR FUTURE COUNTY CONSTRUCTION
  PROJECTS
• Res. 126-2006 (February 2006)
• The resolution intends that the LEED Building
  Rating System (2.1) be applied to capital
  building projects that require the expenditure of
  
• 1 million or more (2008 updated to LEED 2.2).
• Suffolk Countys first LEED Projects
• Scully Estate, Islip Existing Construction
  (Historical Restoration)
• SCPD Fourth Precinct, Smithtown New
  Construction
• ENERGY EDUCATION
• SCCC Operating Budget Amendment (August 2007)
• Funding for Academic Curriculum in Energy, a
  collaborative effort between Suffolk County
  Community College and State University at
  Farmingdale.
• To promote and advance academic degree programs
  in energy for both professional and
  non-professional track students. In 2009
  expanded to include Stony Brook University.
• Provisions for Continuing Education Programs with
  Local School Districts.

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Suffolk County InitiativesIn Discussion

• Alternative Fuel Vehicles and Fueling
  Infrastructure in Cooperation with Greater Long
  Island Clean Cities Coalition
• Federal Stimulus First Round Applications due
  May 29, 2009
• Conceptually alternate fuels strategy may
  include
• Biodiesel (B20)
• Plug-in and Conventional Hybrid
• Compressed Natural Gas (CNG)
• Inter-Municipal Clean Energy Council
• Initial Funding through Federal Stimulus
• Proposes to establish a Council of Policymakers
  to establish a regional energy policy and unified
  strategy for implementation.
• Stationary Energy Use (i.e. municipal and private
  sector facilities)
• Mobile Energy Use (i.e. alternate fuel vehicles
  and fueling facilities, mass transit, other)
• Inter-Municipal Fuel Purchasing Agreements
• Proposes to establish a Suffolk County Contract
  for the purchase of energy commodity
  specifically, natural gas.

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Influences Driving Interest in Energy and Green
Projects

• Environmental Concerns
• Clean Air, Clean Water, Global Warming
• Social Concerns
• Quality of Life (influenced by affordability)
• Project Development in Poorer Communities
• Energy Supply
• Growing Dependence on Foreign Sources
• Local Supply Issues
• Energy Pricing
• Global Influence on Commodity Markets
• Local Influences on Retail Pricing

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Electric Utility Industry(From One Stop Shopping
to Unbundled Services)

• Virtual Speed-of-Light System
• Source Orange Rockland Utilities, Inc.
• Phase I Decentralized Edison Plants
• Direct Current (DC) technology that limited
  effective transmission distance.
• Phase II Central Bulk Power Monopoly Model
• Economies of Scale extend affordable power to
  population
• Utilities earn guaranteed Rate of Return on
  Investment

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Day Ahead Bid ProcessSource Cold Snap Task
Force Update, ISO-New England

• The Highest Bid Price for Electric Generation
  Sets the Daily Market Price

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Deregulation On National LevelSource LIPA
Energy Plan 2004-2013
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BlackoutAugust 14, 2003

• Private investment in new transmission cables has
  not been made because
• Existing cables operating at or over capacity and
  have little to no debt service so have high
  profit margins
• New cables would result in reduced transmission
  on older cables and service over new cables
  with high debt service would not be as profitable
  thereby reducing profits overall.
• Testimony before U.S. Congress by Regional
  Transmission Operator of Ontario Canada

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Interregional Nature of Energy

• NYS PSC Backstop Provision the New York State
  Public Service Commission has issued a policy
  statement that regulates the recovery of PSC
  approved private sector investment in new
  generation, transmission cables, and/or
  demand-side initiatives.
• http//www3.dps.state.ny.us/pscweb/WebFileRoom.nsf
  /Web/E6730BE16EE137D185257435006770A1/File/301_07
  e1507_final.pdf?OpenElement

Source GE Power Systems Energy Consulting
NYS RPS Phase I Reliability Report
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Natural Gas Supply

• U.S. Natural Gas Pipeline Network

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Natural GasPipeline Supply to Long Island

• Millennium Pipeline
• Approximately 182 miles of 30 inch diameter steel
  pipeline - 15,000 horsepower compressor station
  capable of transporting up to 525,000 decatherms
  of natural gas per day.
• Centerpiece of a larger project involving
  expansion of the existing Empire, Algonquin, and
  Iroquois pipelines.
• One of the main benefits of the Millennium
  project is that the new pipeline is replacing
  aging infrastructure.
• Source Millennium Pipeline Company, LLC

• Existing Proposed Pipelines
• Iroquois IGTS Eastern Long Island to Shoreham
  being reconsidered
• Iroquois Expansion Project upgrade of existing
  pipeline to Northport - 200 mill Btu/day
• Islander East 260 mill Btu/day
• Tennessee Gas Pipeline (El Paso Company)

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Natural Gas Winter StorageTo Balance Supply
Demand it is necessary to store natural gas in
the summer to meet winter demand.

• In a typical year over 2 trillion cubic feet of
  natural gas are injected into storage between
  late spring and early fall.
• Competing Demand
• Most of the additional power generation capacity
  in the last decade has been from construction of
  natural gas fired plants.
• Natural gas consumption for power generation
  peaks in the summer.
• Natural gas consumption by the power sector
  indicates a trend for more gas to be used for
  power generation in the winter as well, (and)
• The volume of natural gas used for base load
  rather than peaking has doubled in the last
  decade.
• Rate and Volume of Storage
• A hot summer can diminish the rate of injection
  to storage that is needed to meet peak winter
  demand.
• An early or cold winter can reduce storage to the
  point that prices rise on concern that there will
  be insufficient supply later in the heating
  season.
• Source James Williams, Energy Economist

• Typical Natural Gas Storage Facilities
• Natural Gas Storage Locations

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Energy Demand Cycles(Profile of Suffolk County
Facilities)
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Access to Long Island Natural Gas Pipelines

• Natural Gas Supply and Capacity Priority

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There are gas transmission constraints in New
England from all geographic directions.
Northeast Gas Association, May 2004
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New York Mercantile Exchange (NYMEX) Commodity
Price History
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NYMEX Closing Price HistoryYear-over-Year

• Economic analyses typically project annual energy
  price escalation at 3-5.
• 1 Barrel of Crude Oil 5,800,000 Btu (5.8
  million Btu)

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NYMEX Monthly Price History(2005-2009 Ytd)

• Current OPEC Target Price of Crude Oil is
  approximately 60-70 per barrel

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OPEC Price Control Modeled on Texas Railroad
Commission

• For decades the Texas Railroad Commission and
  the various agencies that regulated oil
  production in large producing states successfully
  controlled the world price of oil. They did so
  by limiting the production of individual wells.
  Each well had a maximum allowable production with
  actual production in any given month set at some
  percentage of the maximum. This was successful
  until 1970 when Texas no longer had any spare
  capacity. It is no surprise that two of the
  individuals responsible for the formation of OPEC
  had intensely studied the Railroad Commission and
  its methods.
• As an old West Texas oilman once put it. The
  difference between the Railroad Commission and
  OPEC is that OPEC doesnt have any Texas Rangers.
  True power within OPEC is the ability to destroy
  prices. We think that the Saudis are now playing
  the role of a Texas Ranger. They have almost 3
  million barrels per day of spare capacity in that
  gun belt around their waist. The next meeting is
  scheduled for May 28, by then we should know if
  they are successful in the role of enforcer.
• James L. Williams, Energy Economist
• WTRG Economics

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Electricity, Natural Gas, Fuel Oil Long Island
Retail Price Sample(1991-2009 Ytd)

• Based on Actual Suffolk County Expenditures for
  Energy
• 1 kWh 3,413 Btu X 1 hour
• 1 Therm 100,000 Btu
• 1 Gallon 2 Fuel Oil 138,500 Btu

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Electric Utility BillingCommodity vs
Transportation

• LIPA Rate 281
• Delivery System Charges Transportation of
  Electricity

• LIPA Rate 285
• Power Supply Charges Energy Commodity
• (Fuel Purchased Power Other Fixed Costs)

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Natural Gas Utility Billing Commodity vs
Transportation

• Natural Gas Provided by
• KeySpan (KEDLI) / National Grid
• Gas Delivery Cost
• PSC Approved Recovery of Investment the Cost to
  Deliver
• Gas Supply Cost
• Cost of Commodity
• Long-term Contracts
• Near-term Contracts
• Spot Market Purchase
• Winter Storage Cost
• Mitigated by Off-System Sales

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Ratepayer Funded Utility BasedEnergy
Efficiency Programs

• Revenue Decoupling The Public Service
  Commission allows utilities to recover lost
  revenues resulting from ratepayer funded
  efficiency and conservation programs as an
  incentive for utilities to promote energy
  efficiency and conservation.

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Existing Buildings

• Building Assessment
• Identify Deficiencies before Prescribing Remedy
• Would you go to the pharmacist before going to
  the doctor?
• Set Order of Priority for Improvements but -
  Evaluate Cost/Benefit in the Aggregate
• Each measure diminishes the effectiveness of the
  next, but
• Bundling measures can leverage greater gain.
• Looking Marvelous is NOT better than being
  Marvelous!
• Avoid sexy technologies on an Energy Pig!

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Design and Construction

• Proper Planning
• Consider Alternatives in Design Phase
• There is no single technology best suited for all
  applications
• Own the Planning Process
• Trade and Designer Bias can Undermine Design
  Innovation
• Building Commissioning
• Is it being built as designed?
• Does it work as intended?

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Interest In Green Buildings From Many Sectors

• Goals
• Improve Energy Use Profile
• Reduce Operating Costs and/or Avoid Future Cost
  Increases
• Occupant Health Firefighter Safety
• ASHRAE Fresh Air and Indoor Air Quality
  Guidelines
• Proposed PV standards in California require area
  for roof venting and electrical connection markers

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Getting the Message Out About Green Building
Constructionwww.nysfirechiefs.com
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Interdisciplinary Collaboration is the best way
to build consensuswww.nysfirechiefs.com