Sunday, December 20, 2009

Get a better deal on wind farm PILOT by JOHN P. GAUS

At a recent meeting of the Jefferson County Legislature, our senior executive for the Jefferson County Industrial Development Agency and the lawyer for the Galloo Island Wind Farm project developer explained why they want the county to rush to pass a gigantic tax break for the developer before knowing all of the important facts. The developer needs the attractive deal from Jefferson County residents to help his bankers on Wall Street.

Before using rural taxpayer dollars to help Wall Street bankers, the county and JCIDA need to do more work. At a minimum we must ensure 1)that we get the best economic deal possible; 2)that the project complies with the law; 3)that the developer won't use eminent domain to seize our neighbors' property; 4)that we minimize the negative impacts to property values and waterfront communities, and 5)that we consider the alternatives to this type of industrial development.

BEST ECONOMIC DEAL

The project as currently planned is likely a bad deal for Jefferson County. The only way to know for sure is to analyze the developer's detailed project models and review the same information that the developer has provided to its own investors. After all, our community is very much being asked to invest with our tax dollars and resources.

The deal for Jefferson County should be commensurate with the project's value to its other investors. The deal should let Jefferson County taxpayers share in the monetizeable value that the developer receives as a result of our tax break.

The deal should also seek a share of the 30 percent federal incentive in the form of town and county project equity, seek a share of the value of the New York State Energy Research and Development Authority incentives, not waive taxes on the sale of the transmission line, and tie increased revenue to our taxpayers to total project revenue and/or sale value of the project instead of to power prices where power is already at an excess.

STOP EMINENT DOMAIN

Eminent domain should only be used when the taking of land is absolutely necessary for the public good. This project is not necessary for our public good. Our region already runs at a power excess. Our region also already produces the vast majority of renewable power in New York state through the St. Lawrence Seaway Power Project, our many small hydro dams and the wind power already in the north country.

This project is a money grab for the developers made available to the developer as a result of massive subsidies. As the project is not required and arguably bad for our environment, we cannot allow it to utilize eminent domain against our neighbors.

COMPLY WITH LAW

There a number of ways that the current environmental impact statement on file for the project is likely not compliant with the law. First, the State Environmental Quality Review must consider the cumulative impact analysis when:

Part 617.7(c)(1)(xii) "two or more related actions undertaken, funded or approved by an agency, none of which has or would have a significant impact on the environment, but when considered cumulatively would meet one or more of the criteria in this subdivision."

A cursory read of the impact statement demonstrates this has not been done with respect to the New York Power Authority plan to put turbines in the water, the other planned projects in the north country or with respect to the planned transmission line which has been separated from the wind power project as a technicality and for convenience. This is wrong.

The environmental impact study is also deficient with respect to its environmental justice analysis, the state Department of Environmental Conservation Open Space Plan, petroleum and chemical bulk storage permitting, and the socioeconomic impact of the planned use of eminent domain which the developer does not acknowledge in the document.

MINIMIZE NEGATIVE IMPACT

The project as currently planned does not seek to minimize environmental or community impact. The transmission line is planned at over four times its required capacity. Many believe this is to allow for turbines to be placed in the water. We should seek to have the transmission line built only as required and get a written guarantee from the developer that turbines will never be allowed in the water in any future expansion to the Galloo Island project.

Additionally, we should demand the Federal Aviation Administration lighting plan for the project be changed. The plan could forbid towers in the water, minimize towers on the east side of the island, make the area a no-fly zone to do away with need for intrusive lights, or choose lights that point up with a nonintrusive wavelength.

If we do not improve the FAA lighting plan, the eastern end of the lake will look like JFK airport at morning, dusk and night. This will decrease property values, hurt tourism and damage our waterfront community businesses.

CONSIDER ALTERNATIVES

There are renewable energy and other economic development alternatives that may be much better than the wind power projects currently planned. Such projects likely require less in subsidy, create more benefit for our community and create more long-term jobs. Examples of these projects include agricultural scale wind for dairies and greenhouses.

Our local dairy industry is in crisis, and we produce little of our own food. If 500 households in Northern New York were able to buy all local food, there would be a greater net cash impact on our community annually than the Galloo Island pilot payments. Other project opportunities include biomass digesters and biomass farming, particularly willow plantations. Such development would produce environmental benefits, more jobs and more base-load power than Galloo Island.

We should investigate positive alternative development for the long-term good of our community. There is no need to rush into industrial wind power. If the planned wind power project are truly good project, they will still be good project 24 months from now. If we do this, we should take our time and do it right. Hasn't Wall Street hurt rural American enough already?

The writer is an owner of Golden Technology Management, a Potsdam firm that invests in commercializing renewable energy technology.

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