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Industry Leader Interview: Paul Tonko

e-FFICIENCY NEWS: The New York State Energy Research and Development Authority (NYSERDA) is an interesting and unique organization. Can you tell us a little about the history and function of NYSERDA and your role as President and CEO?

Tonko: NYSERDA is a public benefit corporation that was created in 1975 by State legislation. NYSERDA has been cited by the U.S. Department of Energy as being among the best government research organizations in North America. Our broad range of activities include: monitoring energy consumption and emissions; extensive research and development; administering energy-efficiency programs and assistance to residents, businesses, and industries; and managing the Western New York Nuclear Service Center at West Valley.

NYSERDA’s workforce is comprised of very talented, dedicated and expert individuals, each deeply committed to creating an efficient and clean energy future.

We are primarily funded by a system benefits charge on electric utility customers. With that funding, NYSERDA has developed a sophisticated portfolio of programs under the New York Energy $mart umbrella. This portfolio encompasses public awareness campaigns, consumer education, the development of competitive markets for energy efficiency, energy services infrastructure, and incentives to help customers with the cost of energy-efficiency improvements.

NYSERDA’s management of this program enables a holistic, expert and efficient application while preserving the ability to programmatically meet changing societal and energy needs. Our unique approach toward delivering energy efficiency employs this holistic philosophy. Our multi-faceted efficiency programs work to spur deployment of innovative solutions, transform market demand, develop the supporting workforce, grow the use of high performance buildings, educate retailers, contractors and consumers, and support residential, commercial, municipal, industrial and academic sectors.

Our research and development programs are designed to “stock the shelves” with an array of new and next generation technologies. The programs help move technologies from prototype to commercialization, spur innovation, mitigate technology development risk, promote advances to next generation systems and implement demonstration projects.

NYSERDA also administers the renewable portfolio standard (RPS) which has as its goal to increase the proportion of renewable electricity used by New York consumers to at least 25% by 2013. Through the RPS, NYSERDA stimulates and supports a myriad of projects that include hydropower, wind, biomass, solar, hydrogen and other emerging technologies.
Through all we do, we measure and evaluate for effectiveness, and retain the flexibility to make midcourse corrections as needed.

Our mission is to use innovation and technology to solve some of New York's most difficult energy and environmental problems while improving the State’s economy. As President and CEO, I am responsible for carrying out that mission, ensuring that the State meets its ambitious energy goals, and keeping NYSERDA at the forefront of energy research and development.

e-FFICIENCY NEWS: You were appointed to lead NYSERDA in July, 2007. How would you rate your first few months on the job and what is your vision for this organization in 2008 and beyond?

Tonko: My time thus far at NYSERDA has been both challenging and rewarding, and I do not expect that to change. It is a very exciting time to be focused on addressing our pressing energy issues. Now, more than ever, people are becoming sensitized to our shared energy challenges and calling for new energy thought, policy and solutions. Governor Spitzer’s administration has resoundingly responded and is committed to moving forward and transforming our energy economy. And NYSERDA is playing a prominent role in these activities.

Our state and nation are faced with a deepening energy and environmental crisis. With that in mind, NYSERDA’s vision is to be a catalyst for change-enabling New Yorkers to realize affordable energy, a growing and vibrant economy, greater energy independence, and a cleaner environment.

Certainly, the challenges are large and many. We need to reduce energy use through energy efficiency. We have to transition our energy reliance toward renewable and indigenous energy resources. We must reduce our dependence on imported energy, which exports dollars and leaves us more vulnerable to energy supply disruptions and price volatility. Additionally, our exported dollars should be kept right here in New York and used to invest in furthering our energy resources and supporting local economic development. We need to coordinate the complementary nature of energy, environmental and economic development policies. This requires us to take a holistic approach to energy, economic development, the environment and the critical fourth “e”--education. In short, we must significantly improve energy efficiency while building a supply base which shifts away from fossil based fuels and toward renewables, and do this with a socially and environmentally responsible strategy.

It is my vision that NYSERDA continues to work toward solutions which aggressively address New York State’s energy challenges and goals. We have embraced Governor Spitzer’s noble plan to reduce statewide electricity use by 15 percent by the year 2015 by bringing to bear our analytical and technical expertise and nationally acclaimed programs. Through the renewable portfolio standard (RPS), we are working to increase the sources of non-polluting, renewable energy in the State to at least 25% by the year 2013. Additionally, we are participating in the Regional Greenhouse Gas Initiative (RGGI) to reduce carbon emissions by electric generation.

e-FFICIENCY NEWS: As winter approaches and fuel and energy prices continue to rise, many people are concerned about paying their utility bills. What can average citizens do to help offset the high cost of energy?

Tonko: We are all feeling the pressures of rising energy costs, particularly as winter has arrived. According to the most recent statistics, the average home heating oil price in New York State is $3.37, up thirty-four cents from last year at this time. With prices like these, we are all seeking ways to offset the high cost of energy.

The average consumer can follow a few simple energy savings tips to help with their high utility costs:

  • Use a programmable thermostat with your heating system to automatically lower the temperature at night or when no one is home.
  • Add insulation, caulking and weather-stripping around doors, attic access, windows, outlets and any area that can let the cold air in and the warm air out.
  • Make sure floor and wall vents are not blocked by draperies, furniture, or rugs.
  • Keep blinds and drapes of sun-exposed windows open in the daytime and closed at night.
  • Lower your water heater temperature to 120 degrees. For added savings, have your water heater wrapped with an insulation blanket by your heating/plumbing contractor.
  • Purchase ENERGY STAR® products which use less energy and help you save money.
  • When decorating for the holiday season, businesses and residents should use energy-efficient holiday lighting. Look for light-emitting diode (LED) holiday lights that are constructed from solid-state chips that convert electricity into light without using a filament or glass bulb. They can burn for up to 100,000 hours, enough to last through more than 11 holiday seasons. They produce almost no heat, rarely burn out, will not overload household circuits and come in a variety of lengths, sizes, colors and styles.

In addition, NYSERDA offers various programs for residents to make their homes more energy efficient and reduce their utility bills. Those who are interested in learning more about these programs and additional energy savings tips are invited to visit our website, www.getenergysmart.org.

e-FFICIENCY NEWS: If the Congress is unsuccessful in passing an energy bill this year, what do you believe can and should be done at the federal level to encourage greater energy efficiency?

Tonko: The federal government can lead by example by making federal buildings and vehicle fleets more energy efficient. Greater investment in research and development for innovative energy solutions could be made, as well as investment in renewable energy technologies to help reduce our dependence on fossil fuel and help the nation move closer to energy independence. Having said that, I am hopeful that a sound and balanced energy plan will come to fruition.

e-FFICIENCY NEWS: In your experience are state and local energy-efficiency programs such as building codes, low-income assistance, and targeted consumer education and awareness campaigns more successful and manageable than similar efforts by the federal government?

Tonko: Collaboration between state and local energy-efficiency programs and the federal government is necessary to sustain our energy and environmental efforts. The key is coordination of initiatives, which complement each other toward a defined goal and bringing the necessary resources to bear on these activities.

e-FFICIENCY NEWS: Where do you see the greatest opportunity for growth and success in the area of energy efficiency over the next 3-5 years?

Tonko: NYSERDA has been conducting a full inventory of current programs, including activity and participation levels, program infrastructures in place, and efficiency savings to date, along with opportunities to expand the energy-efficiency efforts to achieve New York’s 15x15 goal. As a result, many of the programs within the current portfolio are well positioned to ramp up quickly and can serve significantly more customers. Over the next several years, these “fast track” efforts can be expanded to produce additional efficiency savings in the commercial, industrial and residential sectors. Examples of several areas that we are focusing on include, more aggressive lighting upgrades for commercial and multifamily tenants, sustainable energy practices of building commissioning and benchmarking, and industrial process and productivity improvements. These energy- efficiency programs will be designed with the longer term goal of creating a sustainable clean energy industry and innovation economy in New York to foster job creation.

Large opportunities for efficiency also lie within the transportation sector and it is important that we continue to invest in solutions and make appropriate policy choices to increase fuel economy. The growing interest in hybrid technology shows that Americans are interested in going further on a gallon of gas. Innovations such as plug-in hybrids will allow us to use the electric infrastructure in an efficient manner to power our vehicles in the future.

I must underscore how critical education is to achieving and sustaining our energy and environment goals. We will require workers with the skills to construct the new and retrofit the existing infrastructure—I call them “green collar” workers. We must train and re-train the workforce of today and tomorrow for that highly skilled workforce to build and maintain these new energy systems.

The importance of university-based research and academics in the development of new and alternative technologies cannot be overstated—especially given our urgent need to accelerate research and development. We need engineers, design specialists and scientists, among others, who will make production more efficient and cleaner as well as develop that next innovative solution.

NYSERDA is partnering with academia at all levels to help build the infrastructure to support a new efficient and clean energy economy.

e-FFICIENCY NEWS: The issue of climate change has prompted a number of Northeast and Mid-Atlantic States to form the Regional Greenhouse Gas Initiative (RGGI). How has NYSERDA been involved in this effort?

Tonko: The RGGI has as its goal the reduction of greenhouse gases, including carbon and methane. NYSERDA has been involved with this effort by contributing our expertise and developing the carbon auction system. Important facets of the RGGI is the ability to trade and sell carbon offsets, which would secure additional revenues that can be invested in programs to further reduce carbon emissions. By working together in collaborations such as the RGGI, we are investing in the future of our environment.

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