If there is one thing that New York”™s economy does not need today, it is deliberate government policies that will promote higher prices and unemployment with few or any benefits. Yet, that is precisely what the state Department of Environmental Conservation (DEC) has chosen to do with a misguided proposal relating to cooling towers for large industrial facilities along the Hudson and other water bodies.
New York”™s waterways have undergone a rebirth since the enactment of the Clean Water Act and other policy changes going back decades. Indeed, the benefits have been enormous.
The DEC is contending though that power plants in particular and other large facilities are killing large amounts of fish eggs, larvae and some actual fish. However, the vast majority of fish eggs die naturally from numerous naturally-occurring challenges. Many also question the degree to which the fish population will increase if more fish eggs are protected by cooling towers.
Against this backdrop the DEC has put forth a radical idea:Â $8.5 billion in changes to power plants and other large industrial facilities for what is termed “best technology available” for cooling water intake structures.
These funds will largely come out of electricity users”™ pockets. Higher electricity costs are often the tipping point for businesses to put the brakes on new hiring or even to institute layoffs. And some electricity generators have already said they will have to close their plants as it will not be economically viable to make the changes. Thus, there will be more layoffs and with less electricity on the market, prices will head up even further.
It is very disconcerting that the DEC has not done a study nor does it have an economic model about how many jobs will be lost and how much higher prices will go if it enacts this policy. In fact, a group of 14 business and labor leaders including myself recently urged the DEC to examine these issues before proceeding ahead.
In addition, with the electricity supply tight in New York, there are questions about how the closure of plants could impact reliability, especially downstate. Albany should place a moratorium on its policy until at least thorough studies about the impact to jobs, prices and reliability are determined.
There are reasonable alternatives to what the DEC is demanding. At Indian Point, for example, the DEC”™s proposal would require the construction of two Yankee Stadium-size facilities at a cost of $1 billion. This would degrade the banks of the Hudson and lead to more particulate air pollution. Furthermore, the towers would not be built and operational for at least a decade.
Entergy has proposed a $100 million wedgewire screen project that would save about 90 percent as many fish eggs and larvae as anticipated under the DEC cooling tower approach. This would be online years earlier than cooling towers and as such save far more fish eggs and larvae than if the DEC proposal were adopted. It would also avoid scarring of the Hudson”™s landscape and lower particulate and other air pollution emissions as Indian Point would not need to shut down nearly a year, and be replaced with fossil fuels, in order for this construction work to proceed.
The last thing that New York businesses and consumers need today is an unnecessary $8.5 billion or more financial loss with minimal if any benefits. The DEC should revisit its proposed policy and work with the business and labor community to find more sensible solutions for both the economy and the environment.
Dr. Marsha Gordon is president and CEO of The Business Council of Westchester. Reach her at MGordon@westchesterny.org.
