Res. No. 1265-A

Resolution calling upon the appropriate federal and state agencies, and the public, to provide all natural gas supply projects, including the proposed Broadwater Energy Project, a fair and full review, in light of the important role that natural gas is projected to play in enhancing the reliability of energy resources, increasing diversity of supply sources, reducing energy price volatility, and protecting environmental and public health in New York City. 

By Council Member Gennaro and The Speaker (Council Member Miller)

Whereas, To ensure reliability, to promote economic growth, and to address environmental issues, the New York City Energy Policy Task Force (“Task Force”) projects a need for an additional 2,600 megawatts of new electricity resources by 2008; and

Whereas, The Task Force concluded that the best way to meet this new electricity need will be through a combination of new and repowered generation plants, transmission lines, and distributed resources, including increased investments in energy efficiency and demand reduction, and that natural gas pipelines and local gas, electric, and steam distribution, which are critical to electricity delivery, must also be enhanced; and

Whereas, New York currently pays some of the highest energy prices in the continental United States and can pay five to six times more for natural gas than the base price during peak consumption periods; and

Whereas, The New York City Metropolitan Region depends upon natural gas as a primary or secondary fuel for a significant portion of its power generation needs; and

Whereas, High prices for fuel used to generate electricity, which inevitably affect the cost of electricity, directly and adversely impact upon property owners, especially homeowners, and businesses in New York City, and threatens economic sustainability and growth in the City; and

Whereas, The New York State Energy Plan, issued by the New York State Energy Planning Board, forecasts demand for natural gas to increase forty percent by 2020 - mostly driven by electricity generation; and

Whereas, It will be difficult for North American supplies of natural gas to keep pace with projected North American demand by 2020; and

Whereas, The New York City Metropolitan Region is located at the end of the natural gas pipeline infrastructure and does not have sufficient local production or storage capacity for natural gas; and

Whereas, While much more can and must be done to promote the efficient use of electricity to address the region’s energy-related reliability, diversity, cost and environmental concerns, additional investments in natural gas supplies in the New York City metropolitan region are also acknowledged as a critical need; and

Whereas, The Task Force recommended that the City support development of additional interstate pipeline and gas supply projects in the metropolitan area and should particularly encourage gas projects that increase the number of inter-state pipeline interconnections into the City and supply sources to enhance reliability, increase diversity of supply sources, and reduce price volatility; and

Whereas, New sources of natural gas, the cleanest fuel available for fuel-burning power plants, would promote and achieve a cleaner and healthier environment, which is vital to the health of City residents in light of the fact that New York City suffers from some of worst ambient air quality conditions in the country; and

Whereas, The Broadwater Energy Project, a floating liquid natural gas storage and re-gasification facility to be located in Long Island Sound, has been proposed and would provide for significant new storage capacity and new supply to New York City through connections with the Iroquois Gas Transmission System; now, therefore, be it

Resolved, That the New York City Council calls upon the appropriate federal and state agencies, and the public, to provide all natural gas supply projects, including the proposed Broadwater Energy Project, a fair and full review, in light of the important role that natural gas is projected to play in enhancing the reliability of energy resources, increasing diversity of supply sources, reducing energy price volatility, and protecting environmental and public health in New York City. 

PCW 12-16-05

LS # 3775