The Capital Region Energy Forum (New York State)
Statement of Capital Region Energy Forum (CREF)
on NYS Energy Policy
We at CREF believe that the current run-up in oil prices is strongly
related to the geologic fact that oil is a finite resource whose
exhaustion is now foreseeable. While future prices will likely
fluctuate dramatically, over the long run they will continue to
increase, signaling a major transition in the way we use energy. We see
this transition as the dominant driver for NY State Energy Policy
NY State should respond with policies that create an environment that
encourages action by individuals and businesses to accelerate this
transition and enhance our prosperity and security.
These policies would be focused on:
1. avoiding measures that might sound good but which really make the
problem worse,
2. conserving oil (and other forms of energy) in the near
term, and
3. preparing to use sustainable forms of energy to substitute for
limited fossil fuels. While some measures to implement these policies
can be expected to be of immediate benefit, most require time to become
effective. In all cases, the time to start is now.
A
top priority is to “do no harm” to market forces that in the absence of
government actions are directing businesses and citizens to use less
oil and seek substitutes.
Example actions
• Avoid measures, such as an oil sales
tax holiday,
that provide financial relief that increases with the amount of oil an
individual uses. Such measures act in exactly the wrong way,
decreasing rather than increasing the incentive to quickly move away
from oil dependence.
• Avoid subsidies and mandates for oil
alternatives
that would not need them if they are really effective.
Ethanol
from food crops appears to be in this category.
• Avoid policies that give the public the
impression that the energy crisis is temporary.
NYS
government should support conservation measures that save oil by
reducing oil-using activities and increasing the efficiency of oil use
in the remaining activities.
Example actions
• Provide leadership and communication to
the public
to reinforce the need and benefits of oil conservation and of energy
conservation in general. NY State Government should itself become a
model for energy efficiency in its vehicles and buildings.
• Provide incentives for energy efficient
buildings
including energy audit services and loan programs for high payoff
conservation investments such as insulation and replacement of energy
inefficient appliances.
• Support infrastructure development for
energy efficient public transportation.
• Implement car pooling collection points
and high
occupancy vehicle lanes, and flexible work policies that promote
telecommuting. Implement bicycle lanes and legalize electric supplement
bicycles.
• Improve freight rail services.
• Lower speed limits for better gas
mileage.
• Provide models for NYS communities to
change land
use patterns to be consistent with less demand for travel.
Even
with effective conservation, eventually sustainable energy resources
will be needed to substitute for oil and other limited energy
sources. We do not advocate NYS taking a primary role in
developing such resources, but NY state should prepare to use such
resources. Examples focus on electricity since it is the medium for
delivery for many sustainable energy technologies and NYS has
considerable influence over our electric infrastructure. NYS should
encourage the development of the Marcellus shale in Western New York
for natural gas that could be used to substitute for oil for
transportation.
Encourage smart metering by utilities that allows for
time of day pricing and feedback to customers.
• Encourage deployment of plug-in hybrid
cars that
eliminate the need for oil for short trips and when charged off-peak
will improve the utilization of existing capacity.
• Adopt a positive attitude toward
licensing of
off-shore and on-shore wind farms. Consider incentives for
solar
thermal and photovoltaic generation as those technologies become
practical. Experiment with storage technologies that complement wind
and solar.
• Encourage community based power
generation
partnerships that use regionally available renewable energy
• Adopt a positive attitude to some new
electric
generation based on nuclear, coal, and combustible waste, all with
concern for the effects on safety and global climate change.
This
latter position is based on the need for many options to deal with an
uncertain energy future.
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