New York State Leads the US in Geothermal HVAC Policy

March 18, 2015, NY-Geo Conference Skidmore College,Saratoga Springs, NY

Greg Hale, Senior Energy Advisor to Governor Cuomo  photo: John Ciovacco

“I draw a distinction between a lobbyist and an advocacy group. I would spend money on embracing NY-Geo and raise enough money for some staff to keep up the pressure. The next wave is upon us; get up on the board and surf this one!”

- Greg Hale- Senior Energy Advisor to Governor Cuomo

On March 18th, geothermal HVAC activist Bob Wyman lead a panel of NY State policy makers in a panel discussion in which policy was discussed as it related to implementation of GHP’s at the NY-Geo Conference in Skidmore College in Saratoga Springs, NY.  Bob pointed out in opening remarks that GHP’s effectively provide for elimination of combustion heating.  What is often missed is that electrical utilities are increasing their income due to increased base load demand in the form of electrical consumption during the winter-time. 

The following is a summary of the panel discussion.

Diane Burman; New York State's Public Service Commissioner
Photo; John Ciovacco

Diane Burman, NY Public Service Commissioner cited Case 14M-01-01 proceedings and documents related to Energy Vision.  These proceedings bring reform to energy practices.  Diane went on to say that these are perhaps the most dramatic of our day; groundbreaking and new. Governor Cuomo unveiled several new initiatives in what is one of the most significant plans to be unveiled so far.  Others in the US are watching to see what NY is doing and are likely to follow suit.  We need to engage and work with our renewable energy resources, including geothermal exchange to have a diverse Renewable Energy portfolio.

The Renewable Energy Vision (REV) gives customers a greater choice over their energy.  The core of REV is customer engagement.  Diane considers herself an optimistic cynic, because even though she lives and breathes energy, she wants it to be the right “temperature” at the right time. “It’s about making sure that were not imposing what we think is right; it’s more about what people want and giving them that.”

We are opening up access to what people want.  REV is changing the way utilities view energy; enabling changeover to new energy choices while maintaining energy stability. Commissions and rate making framework is to be revised.

We envision that the DSP is going to revise to achieve optimal means.  In order to be fully integrated, the commission took a step to adopt this framework.  Utilities are to no longer be the operator of the local grid, rather the managers.  The need for fuel diversity is a prime mover, and GHP’s are a primary solution, though not the only solution. There will be a lot more initiatives which work with folks on demonstration projects.  We want to showcase projects.  Diane asked industry to help with our collective sustainability.  Track I says we’re all in agreement. Track II is the means by which we to change rate recovery.  We are now challenging the utilities to meet these goals.  The negative comments about NYSERDA yesterday are no longer the case.  “We” are open to ask people to come to the table with real ideas. 

Panelists: Bob Wyman, Diane Burman, Anne Reynolds, Greg Hale

Next steps: 

1^st-Eliminate market barriers to displace fossil fuels.  

2^nd-Create incentives and combos like solar-geothermal. Make them “ever-present. 

3^rd- Educate consumers on the renewable attributes of geothermal.  Make geothermal part of their lives. 

4^th - Building owners need to understand how GHP‘s fit in with their energy plans. 

5^th – We need to identify how geothermal lines up with REV and implement integration efforts. 

6^th -is to work on way 

7^th  -We need to work on marketing efforts for full integration of GHP technologies.

Anne Reynolds; Anne got a geothermal education 101 from Bob Wyman.  Anne cited the need for policy entrepreneurs to support an emerging industry.  1- Getting involved. 2 -Making friends.  How can we stick ourselves into what’s going on?  Anne says that fuel neutrality is the key.  “FN” could lead to strategies of a whole building approach.

About REV; it’s about the electricity system.  It’s about giving the utilities new incentives, whether it’s peak load reduction or whatever.  We need to identify the ways that GHP’s fit in with performance based rate systems. New track is Large Scale RE.  She asks, “Is there an opportunity for that with GHP?”

Anne mentioned “USEPA 111D; achieving increasing clean power”. This could be an interesting alliance with utilities.

“ACE” is 9 years old; Members are solar, wind fuel cells and bio-gas. Serve as an industry association.  Our alliance with environmental organizations is a strength.  Common ground is found.

Interestingly, Anne suggested an alliance with the EV industry in befriending utilities and focusing on all electric power.  This will result in increased electrical consumption.

Winner of the "Top Job" for Geothermal in NY with Judges

Greg Hale- Senior Energy Advisor to Governor Cuomo: There are opportunities where GHP fits in perfectly with many of the new policies without any mention.  Show them how GHP advances their goals.  Price Signal: The market does not yet value long term price security, but it should. Should be able to lock in price certainty and get a value form the price signals.  GHP fuel cost advantage (electric) is certainly going forward.  We want to work from the ground up. The best way is through the community. Aggregate and multiple projects reduce the cost per install.  Greg recommends that we should work with municipalities to let them know the options. We will help to provide those resources.  GHP systems need to be a standard menu item here so that we can be part of providing “Community Choice Aggregation”.  CCA1.0 allows communities to procure their energy in bulk. CCA2.0 allows communities to design their overall RE goals. I think CCA is a very powerful tool for communities. It’s an opportunity to get engaged. Greg said, “I get it that GHP is an important piece of Net Zero”

This plan (I think CCA 1.0 and 2.0) will sail past 111D requirements.  DSM, GHP’s, Greenhouse targets planned will be most aggressive in the US.  GHP is a potent technology that will likely drive reductions at the lowest costs overall.

Greg recommends that the industry clearly show how well GHP technology works for MFH’s and reducing operating costs.

Closes with a comment about lobbyists- Greg says, “I draw a distinction between a lobbyist and an advocacy group. I would spend money on embracing NY-Geo and raise enough money for some staff to keep up the pressure.”  Surfing analogy; “The next wave is upon us; get up on the board and surf this one!”

Bob’s question to Diane: High costs; how to get the utilities to do this? The DSP is envisioned as the platform provider.  GHP community should be also talking to find out what works. 6 other states have 6 differing ideas. How can we change the current way we are working with energy. What can we build off of?  What are the key points in other successful programs? It’s going to be gradual.

Greg: GHP is a District Energy resource.  This is about electric side. This does not include gas or water. Does water want to invest in geo-exchange using existing piping? Perhaps doing a geothermal district off of an existing water system? (Great possibilities…JE speaking)

Bob to Anne; What are the similarities EV to GHP?; There is difficulty is DSM and reduction.  Bob cited the 111D proceedings. The two businesses are a mismatch; we don’t do it in the same metrics. Anne said that a/the carbon cap will generate revenue; We/the GHP industry needs to ensure that these (Carbon) revenues can be used for GHP industry. We also need to enusre that the state plan will implement with GHP integrated.

Comment: Citizens for Local Power; how are the utilities going to support this.  The state is doing a shift; turning over data for local use, etc.

Greg Hale's parting comment; "Fuel Neutrality (FN) will play into any and all electric technology; blending of Electric Efficiency with Thermal Efficiency. FN is the foundation.  This is at the heart of REV". –Greg Hale

Support NY-Geo and the geothermal industry at these links:
NY-Geo
National Geothermal Day 2015
IGSHPA (International Ground Source Heat Pump Association)
GEO (Geothermal Exchange Organization)

Jay Egg is a geothermal consultant, writer, and the owner of EggGeothermal. He has co-authored two textbooks on geothermal HVAC systems published by McGraw-HillProfessional. He can be reached at jayegg.geo@gmail.com