NEW YORK BUILDING CONGRESS
ENERGY COMMITTEE MEETING
FLEET BANK
345 Park Avenue
Wednesday, June 16, 2004
8:30 p.m.

SUMMARY OF DISCUSSION

Attendance:
John J. Gilbert III, Chairman, Richard T. Anderson, Stephen B. Bram, John A. Cavanagh, Marolyn Davenport, Kenneth A. Durr, Ashok Gupta, Howard Hirsch, Michael J. Lembo,
J. Robert Mann Jr., David J. Manning, Alton G. Marshal, Eugene R. McGrath, Louise M. Morman, Patricia Noonan, Gil C. Quiniones, Frances A. Resheske, William S. Roman, Jack Rudin, Howard Shapiro, Robert Vecchio.

Guests:
Frank Giallorenzo, William A. Harkins, James E. McMahon, Thomas L. McMahon, Bud Perrone, Rosemary Scanlon, Len Shapiro, Charles H. Thornton, Richard L. Tomasetti, Adam Victor.

Staff:
Cath A. DelliCarpini-Kruse, Maria Rybchevsky.

Chairman John Gilbert welcomed the committee members and guests. He asked for and received approval of the minutes of the Energy Committee meeting held on March 12, 2004.

Energy Needs for New York City’s Growth
At the last committee meeting, said Mr. Gilbert, it was decided to explore the longer-range energy needs of New York City, particularly in view of the many new economic development and infrastructure projects now being proposed.

Consultants William Harkins and Rosemary Scanlon briefed the committee on their initial findings. Using a Power Point presentation, copies of which were distributed at the meeting, they illustrated the largest projects being proposed, including the Freedom Tower, Goldman Sachs building, Atlantic Yards project, and New York Times building, and estimated that together these projects would require about 1,500 MW. Over the next twenty years, another 1,500 MW in energy growth can be anticipated as well, for a total of 3,000 MW.

Mr. Harkins said the need for electric capacity includes impending plant replacements and capacity for market stability as well as economic growth. He also described the need for infrastructure improvements.

The overall conclusion is that the City urgently needs new sources of supply and will not be able to grow without investment in power plants.

Mr. Harkins said the recommendations of the Mayor’s Task Force on Energy, released earlier this year, remain valid: financing power plants, Article X reauthorization, collaborative planning on infrastructure, zoning for utility facilities, and access to docks. Efforts on these recommendations should continue to be pursued.

The consultant team suggested the possibility of additional work to complete the 20-year inventory, take advantage of new economic forecasts, and reexamine the assumptions for plant replacement and capacity for market stability. This work could be continued on a regular basis, suggested Mr. Harkins.

In discussion, Mr. Gilbert stressed the importance of focusing on proposal development projects and how vulnerable they are to power availability. He said examples should be drawn from all five boroughs in order to emphasize the issue. Mr. McGrath suggested that all elected officials should be encouraged to press for infrastructure improvements. In that regard, the committee was reminded that the anniversary of last year’s blackout is coming on August 14, and the media will be focusing attention on energy at that time. Mr. Gilbert asked the consultants to complete their work for final review by the committee and possible publication and public release on or near that date.

Article X Coalition Bill
Howard Shapiro said a broadly-constituted coalition has prepared a compromise legislative proposal for reauthorization of Article X of the Public Service Law. He said the situation is growing ever more critical and requires resolution before the Legislature adjourns. The “coalition bill” was not authored by the Senate, Assembly or the Governor’s office but seeks support from all. Mr. Shapiro asked for the Energy Committee’s support.

Mr. Gilbert asked everyone to review the legislation as soon as possible. Mr. Gupta said NRDC wants Article X to be reauthorized and hopes that this compromise is not seen as a one-house bill.

Trans-Gas Project Redesign
Adam Victor presented a proposed redesign of the Trans-Gas project on the Williamsburg waterfront in Brooklyn. He said the redesign seeks to accommodate objections to the project, which has received a negative decision from the Administrative Law Judge of the Public Service Commission.

Consulting Engineer Charles Thornton described the revised underground plant design using display boards and handouts. He said the plant would generate sufficient revenue to finance an underground solution, which he estimated would only add about $25 million to the $1.5 billion project. He said it is totally feasible to have the project completed by 2008.

In discussion, Mr. Victor said he would like the Energy Committee to encourage the Bloomberg Administration to review the redesign. He also indicated that it is not clear what the redesign means for the Article X process.

After the Trans-Gas representatives left the meeting, the committee discussed the project’s feasibility and importance to the energy picture in New York City. It was agreed that the Bloomberg Administration should be asked to review the redesign. Mr. Gilbert also asked Marolyn Davenport to clarify the Real Estate Board’s position on the redesign.

Mr. Marshal urged the committee to be proactive on all three agenda items – the City’s long-range energy picture, Article X reauthorization and resolution of the Trans-Gas proposal.

Energy Committee Budget/Fund Raising
Mr. Anderson reported that fifteen committee members have responded favorably to the one-time request for funding this year’s committee budget. Almost $20, 000 has been raised in support of the $35-$40, 000 estimate of consultant and publication costs. He said the Building Congress will continue to provide administrative support for the committee.

Mr. Anderson thanked members of the Energy Committee for their financial assistance and encouraged members who have not yet contributed to do so. A report of income and expenditures will be circulated before the next meeting.

Adjournment
There being no further business, the meeting was adjourned at 10:15 a.m. with appreciation to Fleet Bank for hosting the meeting.

Prepared By,

Richard T. Anderson
President

P.S. Following the meeting, Joe Chan of Deputy Mayor Dan Doctoroff’s staff reported that
the Bloomberg Administration continues to be totally apposed to location the Trans-Gas project at the Williamsburg waterfront site, even with the underground design. He said the location is inconsistent with the Mayor’s waterfront plan and rezoning and simply does not work. The Mayor continues to support an appropriate location for Trans-Gas and is committed to working on new sources of energy supply within the City of New York.