2010 STATE OF THE STATE

Clean Energy Highlights

January 6, 2010 (ALBANY) - Today Governor David Paterson gave his second State of the State address, in which he outlined his plans to initiate major fiscal and ethics reform in New York State. In addition to reform efforts, Paterson also presented his plans to guide the State out of the current financial crisis by supporting economic development in growth industries like clean energy and advanced technology.

Governor Paterson's long-standing support for clean energy and energy efficiency is well known, and ACE NY was pleased to have him reiterate that commitment in today's speech. Some highlights of Paterson's plans for supporting the clean energy economy in 2010 are outlined below.

• Excelsior Jobs Program: The Excelsior Jobs program, which will replace the Empire Zones program, is geared toward fostering job growth in the high tech and clean energy industries. The Program's incentives include the following:

• Expanded Research and Development Tax Credit. Currently, the credit is only available to businesses investing in capital equipment. The definition of the credit will be broadened to allow the use of credit to encourage additional categories of investment.

• Enhanced Investment Tax Credit (ITC). The current ITC will be expanded to support capital investment in target firms such as clean energy technology, biotechnology, finance and manufacturing industries.

• New Jobs Incentive. Again targeting clean energy technology, biotechnology, finance and manufacturing industries, firms that create and maintain a set number of new jobs in New York for five years will receive tax credits for a portion of the payroll costs associated with those new jobs.

• Manufacturing Legacy Program: The Governor plans to take steps to revive New York's manufacturing base by re-purposing or expanding underutilized industrial facilities for participation in the clean energy supply chain. NYSERDA will offer assistance with this process and also launch programs to improve the energy efficiency and emissions profiles of existing manufacturing facilities. Furthermore, NYPA will offer low-cost financing to its economic development customers for clean energy retrofits, and LIPA will seek to redevelop the Shoreham nuclear facility for clean energy manufacturing.

• Leading the Nation to a Clean Energy Economy: In line with the recent adoption of the New York State Energy Plan, Governor's Paterson's plans for supporting further development of in-State renewable energy supplies include:

• Expanding opportunities to improve energy efficiency,
• Submitting legislation to allow for successful implementation of New York's net metering law,
• Submitting legislation to establish a statewide power plant siting process,
• Working with NYSERDA to support at least two large-scale RPS solicitations,
• Working with NYPA to issue a 100 MW solar RFP,
• Working with LIPA and the Long Island-NYC Offshore Wind Collaborative to issue an offshore wind RFP,
• Developing an inventory of State-owned properties suitable for clean energy installations, and
• Providing financial incentives through NYSERDA to encourage the use of bioheating, solar thermal and geothermal systems.

• Energy Infrastructure: The Governor intends to take the following steps in 2010 to evaluate energy infrastructure needs and facilitate investment:

• Prepare a Climate Action Plan that will outline how the State can reduce its greenhouse gas emissions by 80% by the year 2050,
• Inventory existing transportation corridor rights-of-way that could be used for new energy infrastructure, and
• Commence smart grid demonstrations in NYC and Long Island.

Governor Paterson's plan also calls for supporting innovation in the field of renewable energy through coordinated research and accelerated commercialization of clean energy technologies; making clean energy job training standard curriculum in SUNY and CUNY schools; and dedicating EEPS funding to pathways out of poverty programs that train unskilled workers for clean energy jobs. Other highlights include a call for better coordination on energy strategy between the State, local governments, and communities, and plans to reform the Power for Jobs program.

ACE NY looks forward to working with the Governor and his staff on implementing the strategies and goals outlined in today's address. ACE NY's Executive Director, Carol E. Murphy, has also been invited to serve on an advisory panel to the Governor's Climate Action Council, which held its initial kick-off meeting on January 5, 2010 in NYC. An open public meeting is scheduled for January 25, 2010 from 7-9 p.m. in Albany.  

To read the press release accompanying the State of the State address, please click on the following URL: http://www.ny.gov/governor/press/press_01061001.html.