Res. No. 2195

Resolution calling on the New York State Assembly to pass Assembly Bill 187, the New York State Senate to introduce and pass similar legislation, and the Governor to sign such legislation into law, providing New Yorkers with greater incentives to install renewable energy generating equipment.

By Council Members Garodnick, Barron, Brewer, Fidler, Jackson, James, Koppell, Mark-Viverito, Mendez, Nelson, Sanders Jr., Stewart, White Jr., Mealy and Lappin

                     Whereas, New York has great potential to increase its production of renewable energy using wind, solar, and other technologies; and

Whereas, Renewable energy generation equipment often entails a high initial investment, which may take many years to pay for itself through the energy it generates; and

Whereas, A large network of small renewable energy generators, however, would immediately benefit the City and the State of New York by decreasing the stress on the electricity grid, reducing our dependence on fossil fuels and reducing carbon emissions; and

Whereas, New York State currently provides a variety of incentives designed to encourage investment in renewable energy generating technology in the form of rebates for equipment and tax abatements for its purchase; and

Whereas, Incentives for the initial purchase of equipment, however, do not guarantee that an investment in renewable energy generating equipment will be profitable; and

Whereas, An alternative incentive known as a “feed-in tariff” is used to encourage investment in renewable energy generating equipment in a number of places, including Germany, Ireland, Spain, and the Canadian province of Ontario; and

Whereas, A feed-in tariff requires utilities to connect renewable energy generating equipment to the electricity grid and to purchase the energy it produces at a guaranteed rate that is high enough to make renewable energy equipment reasonably, but not excessively, profitable; and

Whereas, Feed-in tariffs have been extremely successful in encouraging the production of renewable energy, with Germany’s feed-in tariff doubling the country’s production of renewable energy the first year in which it was implemented and Ontario meeting its ten-year goal for renewable energy production within the first year of its feed-in tariff taking effect; and

Whereas, A feed-in tariff is a more cost-effective subsidy for renewable energy than rebates at the time of equipment purchase because the cost is paid in small increments over a long period of time rather than in a large initial subsidy for the purchase of equipment; and

Whereas, The addition of large quantities of renewable energy to New York’s electricity grid could reduce peak demand and preclude the need for additional large-scale generating facilities, thus reducing ratepayer electricity costs over the long term; and

Whereas, Assembly Bill 187 would require electric utilities to connect renewable energy generating equipment to the electricity grid, establish a feed-in tariff, and set a rate schedule sufficient to support investment in renewable energy generating equipment; now, therefore, be it

                     Resolved, That the Council of the City of New York calls upon the New York State Assembly to pass Assembly Bill 187, the New York State Senate to introduce and pass similar legislation, and the Governor to sign such legislation into law, providing New Yorkers with greater incentives to install renewable energy generating equipment.

LS# 7670

STW

8/28/09