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Energy Sector Strategy Summit
Summary Report, March 4, 2004 Executive Summary Over 80 representatives from labor, the environmental justice and environmental communities, business, government, philanthropy, and academia came together on March 4 at the District Council of Carpenters to discuss the future of energy in New York City. The meeting was based on the national model of the Apollo Alliance (www.apolloalliance.org) - a broad coalition of labor unions, environmentalists, civil rights activists, progressive businesses, and government officials - and built upon countless initiatives spearheaded by the stakeholders in the room.
Specific themes emerging from the meeting are as follows:
In collaboration with other interested stakeholders, the CLC will also begin working on a number of research projects to support an energy independence/job creation agenda. Research projects include: A list of meeting attendees is included as an attachment, and a detailed summary of the event is described below. OPENING After Steve McInnis of the Carpenters welcomed participants, Ed Ott, Director of Public Policy at the NYC Central Labor Council, provided an overview for the summit, explaining that in order for New York City to maintain its competitive edge, we must seize this opportunity to invest in high performance buildings in a way that is socially, economically, and environmentally just. Doing so, he explained, would create jobs and revitalize the manufacturing sector while changing the nature of energy consumption and production in the city. Ed also challenged participants to work with government to create incentives for this emerging market, and indicated that government - as well as labor and other constituencies with access to capital - can shape their investment patterns to fuel this growth. The public sector also has a huge role to play, as highlighted by the way we build schools, hospitals, parks, transportation infrastructure, and other public services and amenities.PANEL: Keeping our Edge as the Preeminent Global City: Meeting Energy Needs, Creating Good Jobs, and Fostering Smart Community Development Mark Williams, Political Director of Utility Workers Local 1-2, was the first to speak on the panel. Mark's presentation, "NYC's Energy Needs", highlighted that New York's energy infrastructure is in need of repair and expansion, and that deregulation of the industry - a promised panacea to these problems - has not delivered an efficient, reliable, stable industry with family sustaining jobs. Mark stressed that increased utility costs are a tax on working New Yorkers, levied at the expense of profiting companies. Elizabeth Yeampierre, Executive Director of UPROSE, spoke next about "Ensuring that Economic Development is Done Equitably." Elizabeth's presentation focused on how communities of color have been overburdened by environmental injustice, and looked at how the environmental justice and labor movements are united in their quest for smart community development and job creation. Sustainability in communities of color is essential for a thriving future, she explained, and issues of waste, energy, transportation, brownfields, and water need to be addressed equitably. Elizabeth linked local economic development with education and training, job creation, profit retention, and healthy work environments, and challenged the group to extend economic benefits and reduce environmental injustice in communities of color. Presenting the findings from the Mayor's Energy Task Force, Gil Quiniones of the NYC Economic Development Corporation, spoke next. Taking a slightly different approach than Mark Williams, Gil explained that the Task Force - which consisted of business, industry, government, non-profit, and consumer representatives - found that New York City has enough energy at this time but not enough transmission to bring in outside power. Therefore the Task Force found that the City needs 2,600 Megawatts of new electricity resources by 2008, which will be generated through a combination of new and repowered plants, transmission lines, and distributed resources. Gil stressed that we can in fact meet this challenge of demand growth by 2008. And government can serve as a model in meeting these needs by managing its own electricity use wisely. The full Task Force report and its 28 recommendations can be found at www.nycedc.com. Showing how high performance buildings are actually built, Jim Cavanaugh of the Battery Park City Authority spoke about the innovations exemplified by the Solaire, and how such a building can be used as a model to fuel the market. Jim explained that all new buildings in Battery Park City are adhering to green guidelines in order to establish a process for environmentally responsible buildings. The Solaire, he explained, is 35% energy efficient - 67% at its peak - and 5% of the energy is generated by the building itself. Indoor air quality is enhanced through environmentally sound window pains and occupant controls, and water conservation, energy efficient air conditioning, use of natural light, and waste recycling are promoted by the building's design and products. Jim stressed that in building high performance buildings, space needs to be provided for future energy technologies, such as on-site fuel cells, and that we should focus on producing building materials locally if possible. Joseph Littman of NYSERDA concluded the panel with a presentation entitled "Promoting Alternative Energy Usage in New York City." NYSERDA is the state energy research and development authority, and employees 220 individuals in Buffalo, New York City, and Albany. NYSERDA promotes energy efficiency and is looking to reduce energy consumption and needs throughout the state. One way NYSERDA is pursuing this agenda is by creating a market for high performance buildings, working in collaboration with the Battery Park City Authority and others. One specific project provides incentives for energy efficient air conditioners and has already transformed this part of the market. NYSERDA, Joe indicated, understands that communities of color must be included in this process. Panel Discussion/Questions Several themes emerged from the discussion that followed the panel:
"Does it make sense to increase energy conservation incentives and increased upgrading of existing capacity rather than adding new capacity?" "Could the 'sustainable guidelines' from Battery Park City be met for affordable housing? Must the development be able to market at luxury prices?" "We've heard a lot about 'clean' air. What about radiation free air? Like those coal-based energy plants we heard about in Ohio, nuclear power plants not only pose a risk to the communities they are in, but also to wherever the wind blows the radiation? How will we eliminate the need for these plants too?" "Increasing renewable sources of energy inevitably requires more decentralized energy sources. What can the PSC/state do to facilitate decentralization in terms of backup rates and net metering or buy-back requirements?" "Can't we address the issue of energy by building new transmission lines not only increasing voltage; by fostering distributive energy; and by making sure workers' needs are integrated into these strategies?" These questions/comments highlight additional research and public policy issues that we must address moving forward. THE APOLLO ALLIANCE MODEL Joel Rogers, Apollo Alliance founder and Professor at the University of Wisconsin, presented the Apollo Alliance model: to unite labor, environmental and environmental justice movements, government, and progressive businesses in order to achieve energy efficiency in ways that create good jobs in neighborhoods traditionally excluded from economic growth. Joel explained that a large part of the Apollo model is messaging, and that the leading Democratic candidates all supported the Apollo agenda. Currently alliances are being established in Washington, California, and Wisconsin around an agenda supporting high performance buildings, industrial retention, and mass transit advocacy and smart growth. Bracken Hendricks, Executive Director of the Apollo Alliance, framed the discussion as building an energy movement based on good jobs and social justice. Bracken explained that the goal is to knit together local leadership that can shift the economic development discussion. The Apollo Ten Point agenda centers on job creation, community investment, and clean energy. Such an agenda, he argued, is central for industrial job creation and can offer a century of work. The Apollo Alliance has been endorsed by 17 international unions, environmental groups, civil rights organizations, and a number of progressive businesses. PANEL RESPONDENTS Carlton Brown of Full Spectrum NY, a developer of affordable housing, responded to the panel by explaining "Why We Build Green and the Challenges We Face: A Developers Perspective." Carlton insisted that we can in fact build green in urban environments, and that residents of low-income neighborhoods can have access to clean air, water, and a sustainable environment. Carlton develops affordable housing and is currently working in Harlem and Bed-Sty. The main challenges to building green are not related to technology but rather due to traditions in the way government, business, and labor operate. Carlton challenged labor - whose prime constituency can not afford to live in New York City - to look towards job creation, not solely job protection. To close he shared a story: when he wanted to use high performance windows for a new project, he had to have them shipped from Wisconsin because manufacturers have not yet realized that a market for these products exists in NYC. Patty Noonan, Partnership for NYC, spoke about energy and economic development opportunities in NYC, as seen by the business community. Patty stressed that promoting high performance buildings and a reduction in the city's energy needs is an economic development opportunity. However, she stressed that in order to ensure that affordable housing benefits from green building technologies, new financing strategies must be employed to bridge the "split incentive" that makes it difficult for developers to pay the upfront incremental cost, while savings over time accrue to homeowners. Patty also expressed an interest in using the city's intellectual capital and universities to identify and create jobs in the energy sector, thus diversifying the city's economy. John Krieble of the NYC Department of Design and Construction provided an overview of his agency, explaining that they are responsible for building all citywide facilities, aside from schools, hospitals, and water pollution facilities. Because of this role, John indicated, DDC has been establishing sustainable design guidelines promoting low toxicity and mandating waste protocols. Five DDC pilot projects using these standards are being conducted throughout the city. More information is available on the DDC website, found at www.nyc.gov After a brief discussion about opportunities for collaboration, which will be addressed at the end of this section, Brandon Mitchell, NYC Office of the Comptroller, spoke about how public sector investment can fuel market growth. In order to facilitate this process, Brandon indicated that we need much more research - we need to find and then question the manufacturers of high performance building products to understand their operations. We need to research both the market's supply and demand side. Currently the city's job projections focus on niche industries such as jewelry construction and waste management. Research is needed - which can guide and shape investment patterns - showing that NYC can capitalize on a high-performance building sector in order to keep its competitive edge. Andy Padian of Steven Winter Associates spoke about the emerging market of high performance buildings and how the sector can help NYC maintain its status as a global city. Andy's main point was that although building high performance buildings is not rocket-science, the business community tends to be opposed to it. Affordable housing in NYC uses five times more energy per square foot than the average American home, and we must help these buildings become more comfortable and less wasteful. Builders, he indicated, need to work with the engineers and architects to specify water, floor, air circulation, and other energy efficient processes and products. If we capture this market, Andy agreed with other respondents that we will a) have a huge source of new jobs and b) produce significantly less waste. For instance, the largest export out of NYC is newspaper, which we can manufacture locally as an insulation product. Mark Harari of phbCatalyst Group was the final speaker and offered the "Construction Manager's Perspective." He explained that high performance buildings need to be promoted both in policy and on the ground, and that all the stakeholders around the table need to work together to facilitate this process most effectively. He stressed that while NYC is always a global leader and a paradigm of urban living - a place where density, technology, and diversity all merge - we should look to Europe for both policy and building innovations in the energy sector. We have an opportunity to become a global leader in this field if we develop Ground Zero, the Far West Side, and the outer boroughs in a sustainable way. He closed the panel by reminding the audience that innovation bears risk but so does doing things the old way. OPEN DISCUSSION Overwhelmingly, the group indicated that the diverse stakeholders around the table need to work together to produce an energy agenda that supports high-performance buildings, nurtures new industry, creates good jobs for city residents, and reduces the city's energy needs. Clearly doing so is a major investment of time and resources but an investment that the group indicated is well worth it. We've already learned from the High Performance Building Initiative, facilitated by Alan Zerkin, that financing, insurance, and building codes make it difficult to build green in NYC. The group indicated that incentives and public policy -- fueled by changes in codes, regulations, and legislation -- can spur the market. This is not to overlook, however, that using existing incentives to build schools and other public investments in a sustainable way can prime the pump. For instance, Tria Case reported that the University of Buffalo is currently using NYSERDA funds to install solar panels on its buildings, and that the Bronx Community College is seeking to do the same. A major opportunity for collaboration identified by the group concerns assessing the market for manufacturers with a goal of launching a marketing and public relations campaign to entice manufacturers to New York City. To do so, we would need to examine both the market's supply and demand, and we would need to understand where the jobs currently exist and how other cities are nurturing green manufacturing jobs. We need to show that there is an expanding market share in New York City. Establishing local procurement policies can help link product to market. We also need to ensure appropriate citing of production. Redeveloping brownfield sites would be an excellent option, creating jobs and cleaning up neighborhoods that need it the most. The group also realized that promoting high performance buildings is part of something larger: creating jobs and environmental sustainability. For this reason, the ideas and collaborative model discussed at the meeting can be used for other related initiatives such as recycling/reusing garbage, manufacturing and installing solar panels, and accessing our waterfront to produce and transport goods. Participants recognized that the process in which we work together is also important. By using the Apollo Alliance model, several participants suggested, we can articulate our own sustainable development agenda, and politicize it in the 2005 mayoral and 2006 gubernatorial elections. Working with the city's unions and the offices of both the NYC and NYS Comptroller - among other stakeholders - to shape pension fund investments was suggested by many (including the unions and NYC Comptroller's Office) as an environmental planning strategy. CLOSING and NEXT STEPS Ed Ott summarized the meeting by indicating that the ideas expressed have the potential to become a massively popular solution to the city's problems. He cautioned, however, that these goods ideas can not negatively impact low-income neighborhoods: how things get done is as important as what gets done. Such a mindset, he explained, is what makes labor and the environmental justice movements such strong and natural allies. One next step will be to organize tours of high performance buildings. Ed indicated that the Labor Council will try to serve as a catalyst in this process because if the city doesn't rebuild itself in a competitive way, working New Yorkers will continue to lose. Government has spent the last generation making it harder to be poor, and the technologies and ideas expressed at this meeting can make it easier for the working people of New York City. |