THE PORT AUTHORITY OF NY & NJ

Press Release Article


NYPA AND THE PORT AUTHORITY OF NY & NJ ANNOUNCE AGREEMENT TO PROMOTE RENEWABLE ENERGY IN ORANGE COUNTY

Date: Sep 28, 2010
Press Release Number: 64-2010

WHITE PLAINS—New York Power Authority (NYPA) President and Chief Executive Officer Richard M. Kessel and the Port Authority of New York and New Jersey today announced a major development in promoting renewable energy in Orange County.

On Tuesday, the NYPA Board of Trustees authorized an agreement between the Power Authority and Taylor Biomass Energy for the purchase of Renewable Energy Credits (RECs) and other environmental attributes produced from approximately 20.2 megawatts (MW) of generation at a soon-to-be constructed biomass facility in the Town of Montgomery. The purchase of the environmental attributes is on behalf of the Port Authority of NY & NJ, one of NYPA's governmental customers in New York City.

"The Port Authority is a long-time electricity customer of NYPA's and this most recent agreement is yet another step in working toward advancing the state's "45 by 15" plan for 45 percent of its electricity needs to be met through improved energy efficiency and clean renewable energy by the year 2015," Kessel said. "The purchase of Renewable Energy Credits is of pivotal importance in supporting and developing renewable energy resources."

"When the Port Authority took over Stewart Airport in 2007, we made a commitment not only to the facility, but to the region and our impact there. Together with our federal and local partners, we have worked hard to make Taylor Biomass a reality. The purchase of 163,000 megawatt hours of environmental attributes annually through 2032 will ensure the project's viability, providing a major economic boost for the region and helping the Port Authority meet its own clean energy goals," said Chris Ward, Executive Director of the Port Authority of NY & NJ.

"In 2008, the Port Authority became the first public entity in the region to set a goal of carbon neutrality by recognizing both our opportunity and responsibility to be an environmental steward. Through this project, we will acquire 20,000 carbon offsets annually which will further advance our sustainability policy and help make our region a less-polluted place to live and work," said Bill Baroni, Deputy Executive Director of the Port Authority of NY & NJ.

"This multimillion dollar contract with the Port Authority will help create jobs and ensure that the commercialization of technology developed at the Taylor Biomass facility is successful. It will inspire other companies to follow their lead, which in turn will lead to more job creation and economic development," said Sen. Chuck Schumer. "It will also set up an important link between Stewart Airport, one of the Hudson Valley's historical engines of economic growth, and the renewable energy sector, one of the future engines of economic growth"

"This is fantastic news for Orange County and the Hudson Valley," said Sen. Kirsten Gillibrand, a member of the Senate Environment & Public Works Committee. "New York is a leader in the development of green jobs, and the advancement of the Taylor Biomass project will help to create a model for other communities to advance waste to energy solutions that create good jobs, save energy costs, and help protect our environment."

"The partnership between the Port Authority of New York and New Jersey (PANYNJ) and the Taylor Biomass Montgomery project here in the Hudson Valley stands as the kind of synergy that is created when business leaders look forward with the intention of creating green jobs and conserving energy," said Rep. John Hall (NY-19). "The Renewable Energy Credits and carbon offsets that PANYNJ will receive with the opening of Taylor Biomass clean energy generating plant will result in lower costs to consumers and taxpayers as well, proving once again that it pays to go green."

"The Port Authority of NY & NJ deserves a great deal of credit and thanks for its leadership and investment at Stewart Airport and its commitment to make the operations of the Airport carbon-neutral," said Rep. Maurice Hinchey. "Furthering its sustainability goals, this agreement with NYPA will benefit the environment while also providing a critical boost to the Taylor Biomass Energy project in Montgomery and our region's economy."

Orange County Executive Edward A. Diana said, "As the Taylor Biomass project continues to move towards an environmentally friendly future with sustainable energy and reduced greenhouse emissions, Orange County looks forward to working with them and the Port Authority on this breakthrough business model."

RECs, like other environmental attributes, are tradable energy commodities that represent proof that electricity was generated from an eligible renewable energy resource. Renewable energy projects may include solar, wind, landfill gas, waste-to-energy and other clean sources of power.

In January, NYPA issued a Request for Proposals (RFP) for environmental attributes representing up to 25 MW of generation from renewable energy generators not yet in operation. After reviewing the received proposals, NYPA, through consultation with the Port Authority, determined that Taylor Biomass was the only physical-supply bidder that met the stated criteria of the RFP, for a stable and economically competitive price, while also contributing environmental benefits and economic development to the community in and around the Stewart International Airport. The airport, in New Windsor, is operated by the Port Authority of NY & NJ.

The Taylor Biomass generation facility, which is scheduled to begin construction in mid-November, will be a first-of-its-kind combined-cycle generator, fueled by the gas output from sorted and non-recyclable portions of waste and woody biomass collected in Orange County. The generating facility will create 85 permanent positions, as well as 110 temporary construction jobs. The purchase-and-sale agreement with Taylor Biomass will be for 20 years, beginning on the commercial operation date of the plant, which is targeted for Oct. 1, 2012.

The separate agreement that the Power Authority and the Port Authority will enter into for the resale of the environmental attributes will coincide with the term of the NYPA agreement with Taylor Biomass.

The Power Authority meets the electricity needs of Port Authority facilities in New York City under a long-term agreement that expires in 2017.

About NYPA:

¦ The New York Power Authority uses no tax money or state credit. It finances its operations through the sale of bonds and revenues earned in large part through sales of electricity. ¦ NYPA is a leader in promoting energy efficiency, new energy technologies and electric transportation initiatives. ¦ It is the nation's largest state public power organization, with 17 generating facilities in various parts of New York State and more than 1,400 circuit-miles of transmission lines. ¦ Nearly 80 percent of the electricity it produces is clean renewable hydropower. Its lower-cost power production and electricity purchases support hundreds of thousands of jobs throughout the state. ¦ For more information, www.nypa.gov

About the Port Authority of NY & NJ:

The Port Authority of New York and New Jersey operates many of the busiest and most important transportation links in the region. They include John F. Kennedy International, Newark Liberty International, LaGuardia, Stewart International and Teterboro airports; AirTrain JFK and AirTrain Newark; the George Washington Bridge and Bus Station; the Lincoln and Holland tunnels; the three bridges between Staten Island and New Jersey; the PATH (Port Authority Trans-Hudson) rapid-transit system; Port Newark; the Elizabeth-Port Authority Marine Terminal; the Howland Hoo