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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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for eight days.<br />

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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315-788-1885<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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