coldwell banker cb - Watertown Daily Times
coldwell banker cb - Watertown Daily Times
coldwell banker cb - Watertown Daily Times
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PROGRESS 2008<br />
WATERTOWN DAILY TIMES Day,Month Sunday,March Date,Year 2,2008 C5 7<br />
Wind farm developers in Jefferson face gale of challenges<br />
FROM PAGE 5<br />
will be in that position — the<br />
Galloo Island project.<br />
The projects on the mainland<br />
must or have chosen to honor<br />
setbacks.<br />
James H. Madden, BP Alternative<br />
Energy project manager,<br />
said that distance is not a<br />
straight formula to wind resources<br />
as setbacks push a development<br />
back from the coast.<br />
“We’re trying to measure wind<br />
resources in different areas in<br />
the project,” he said. But he conceded<br />
that at a certain distance,<br />
setbacks could eliminate a project<br />
from the wind resource-rich<br />
land.<br />
Daniel E. DuBois, director of<br />
businesss development for Acciona,<br />
said that Acciona would<br />
honor the setbacks proposed in<br />
a zoning law amendment in<br />
May 2006 for its St. Lawrence<br />
Wind Farm. Even though the<br />
amendment was not passed, it<br />
included setbacks of 1,000 feet<br />
from nonparticipating residents’<br />
property lines, 1,250 feet<br />
from nonparticipating residents’<br />
homes, 750 from participating<br />
residents’ homes and<br />
1,500 feet from the village of<br />
Cape Vincent line.<br />
Most of the power produced<br />
by wind farms would be sold on<br />
the wholesale market in New<br />
York. New sources of power are<br />
in high demand after the 2003<br />
blackout that left much of the<br />
Northeast without electricity. A<br />
blackout in summer 2006 left<br />
western Queens without power<br />
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The Associated Press reported<br />
in January that Consolidated<br />
Edison, the utility that serves<br />
New York City and Westchester<br />
County, delivered a record<br />
amount of electricity in 2007.<br />
During the summer, use of electric<br />
power has increased 200<br />
megawatts each year. A<br />
megawatt is about enough power<br />
to supply 1,000 homes.<br />
The state’s renewable portfolio<br />
standards make Northern<br />
New York attractive to renewable<br />
energy developers. The<br />
New York State Energy Research<br />
and Development Authority is<br />
responsible for the program,<br />
which is encouraging the<br />
growth of renewable sources so<br />
they represent 25 percent of energy<br />
used by 2013.<br />
The authority is responsible<br />
for purchasing power produced<br />
by renewable sources. Power<br />
customers across the state pay a<br />
surcharge for renewable energy,<br />
which is the agency’s fees from<br />
the utilities passed on to consumers.<br />
The money goes to NY-<br />
SERDA, which rewards renewable<br />
energy producers with a<br />
credit or refund for each<br />
megawatt hour of renewable energy.<br />
During its first and second<br />
rounds of funding renewable<br />
power projects in 2006 and 2007,<br />
NYSERDA contracted with 26<br />
renewable energy generators.<br />
They were rated to produce 800<br />
megawatts and were estimated<br />
to produce almost 2.9 million<br />
megawatt hours in 2008. In the<br />
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second round, the agency<br />
agreed to pay $15 per megawatt<br />
hour.<br />
Paul W. Burdick, project director<br />
for AES, said the more renewable<br />
energy that is produced, the<br />
lower the power prices will be.<br />
“It’s a statewide benefit for power<br />
buyers,” he said.<br />
Anne V. Dalton, spokeswoman<br />
for the Public Service<br />
Commission, said that power<br />
consumers are seeing increasing<br />
surcharges for the program.<br />
For example, National Grid customers<br />
paid less than $2 in 2006,<br />
$3.30 in 2007 and will pay $4.95<br />
in 2008.<br />
“The reason the surcharge increases<br />
is that the targets each<br />
year increase,” she said. NYSER-<br />
DA is authorized to collect the<br />
renewable energy charge<br />
through 2013.<br />
A report released Monday by<br />
the state’s Renewable Energy<br />
Task Force said the RPS program<br />
could support 3,000 megawatts<br />
of wind energy, but 5,000<br />
megawatts have been proposed.<br />
Lt. Gov. David A. Paterson,<br />
who is the task force’s chairman,<br />
said that the program is receiving<br />
onlytwo-thirds of the money<br />
it needs. The Public Service<br />
Commission is conducting a<br />
study to determine the how<br />
much more money the program<br />
will need and how it should be<br />
collected.<br />
Besides the state program, the<br />
wind projects could benefit<br />
from the federal government’s<br />
production tax credits. This tax<br />
break will expire at the end of<br />
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2008 if it is not renewed. But as it<br />
stands now, a company receives<br />
a two cent per kilowatt hour tax<br />
break for 10 years.<br />
The tax credit was not voted<br />
into the economic stimulus<br />
package that was passed by the<br />
U.S. House of Representatives<br />
and the Senate on Feb. 7. But it is<br />
part of an energy tax break bill<br />
introduced Feb. 12 in the House.<br />
A wind farm must be built and<br />
producing energy before it can<br />
receive the tax break. None of<br />
the Jefferson County projects<br />
will be constructed before the<br />
end of the year, so they will be<br />
unable to benefit if the program<br />
is not renewed.<br />
While the developers of the<br />
local projects said they would<br />
not stop the development if the<br />
tax credits are lost, they all said it<br />
would hurt their projects. “It’s<br />
one of the main drivers for making<br />
renewable energy feasible,”<br />
Mr. Burdick said.<br />
Local payment-in-lieu-oftaxes<br />
agreements also ensure<br />
that developers can afford their<br />
wind projects. The county,<br />
towns and school districts in the<br />
project area receive a payment<br />
smaller than the amount property<br />
taxes would bring in from<br />
the developers.<br />
DEVELOPMENT BENEFITS<br />
Developers flaunt several<br />
benefits, from the concrete to<br />
the emotional.<br />
Job creation is one of the<br />
biggest benefits for the county.<br />
Galloo Island Wind Farm could<br />
create about 250 construction<br />
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jobs and 10 or 15 permanent operation<br />
jobs, according to Kim<br />
M. Sachtleben, project manager<br />
for Babcock & Brown, the investment<br />
firm backing the project.<br />
While she does not yet know<br />
whether they will hire all or most<br />
of the workers locally, she said,<br />
“It is always our first choice to<br />
get the workers locally.” Local<br />
hiring is better for the company,<br />
because it costs less. The workers<br />
in the construction phase<br />
would be potential candidates<br />
for the permanent, full-time operation<br />
jobs.<br />
Horse Creek Wind Farm in<br />
Clayton, developed by PPM Energy,<br />
will also create dozens of<br />
construction jobs and five to<br />
seven full-time operation positions.<br />
The St. Lawrence Wind Farm<br />
will bring between 75 and 100<br />
construction jobs and four to six<br />
full-time positions, Mr. DuBois<br />
said. It has already caused AES<br />
and Acciona to create a full-time<br />
job and a part-time internship<br />
to staff a Cape Vincent office.<br />
BP Alternative Energy’s Cape<br />
Vincent Wind Farm could bring<br />
between 150 and 200 construction<br />
jobs and five to 10 maintenance<br />
and adminstrative positions<br />
after construction is complete.<br />
Project manager James H.<br />
Madden said BP does not have<br />
control over the hiring pool —<br />
that is determined by the contractor<br />
for the job. But he expects<br />
there will be as many local<br />
electricians and workers hired<br />
as possible. “You need people<br />
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with the right skills for a very<br />
compressed time frame,” he<br />
said. “If we have two projects developed<br />
at the same time, the local<br />
market will be overwhelmed.”<br />
All of the developers are or will<br />
be negotiating tax breaks in payment-in-lieu-of-taxes<br />
and host<br />
community agreements. But after<br />
15 or 20 years, those agreements<br />
expire and the developers<br />
will pay full property taxes.<br />
Babcock & Brown also said<br />
their development would help<br />
Galloo Island. “Most of the island<br />
is not going to be disturbed,”<br />
Ms. Sachtleben said.<br />
The development would affect<br />
about 4 percent of the acreage,<br />
leaving about 1,920 acres as a<br />
“de facto nature preserve.”<br />
Ms. Sachtleben also pointed<br />
to environmental benefits for<br />
the Galloo Island project. Babcock<br />
& Brown’s preliminary estimates<br />
show that 17 billion gallons<br />
of fresh water will be conserved.<br />
That is the amount of<br />
water it would take to cool a<br />
power plant during one year.<br />
And, she said, the Galloo Island<br />
production will keep 1 million<br />
tons of carbon dioxide from<br />
being released in the atmosphere.<br />
Mr. DuBois said this green<br />
source of energy should give<br />
people an emotional reason for<br />
supporting wind farms. Residents<br />
will know “Jefferson<br />
County has done something to<br />
solve the greenhouse gas emissions<br />
crisis,” he said.<br />
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