News From Governor Paterson - Week of 9/29/2008

category:Government and Politics posted:September 30th, 2008

Governor Patterson Has Vetoed 171 Bills, Saving New York Taxpayers $531.7 Million Over Next Two Years

Governor David A. Paterson has saved taxpayers $531.7 million over the next two years by vetoing bills that would have added significant costs to the State budget after it was enacted in April without identifying spending reductions to pay for them. In addition to preventing unaffordable growth to the State General Fund that would exacerbate next year’s projected multi-billion dollar budget gap, the 171 vetoes he has issued since June will save money for local governments, as well.

“These tough fiscal times call for tough decisions,” said Governor Paterson. “While I have signed hundreds of bills into law that will help improve the lives of our citizens in the areas of education, health care and public safety, I felt it was absolutely critical to veto bills that increased taxpayer costs beyond what we can afford in these challenging times.”

Governor Paterson added: “Many of the bills I vetoed are worthy projects with laudable goals. But in the face of this current fiscal crisis, we must begin immediately to adjust our budget priorities to reflect the new economic reality we must confront.”

Since he took office in March, Governor Paterson has worked with the Legislature repeatedly to reduce state spending to protect the State’s finances. These measures include spending cuts the Governor and Legislature implemented in April and July totaling more than $1.3 billion, a hard hiring freeze, and an extraordinary special session of the Legislature in August that enacted savings of $1 billion over two years.

At the end of August, the Division of the Budget projected that the State faces a $5.4 billion deficit in 2009-10 and a $24.4 billion deficit over the next three years. Governor Paterson is currently reviewing recent revenue collections and will be meeting with Legislative leaders on Friday to discuss the recent turmoil on Wall Street’s impact on the State budget. The Division of Budget is also scheduled to release a new Financial Plan at the end of October that will provide official updated fiscal projections for the remainder of the current fiscal year and future years.

Release of the Port Authority Report on the Rebuilding of the World Trade Center Site

“Seven years ago, we witnessed the most tragic day in our State’s history, when nearly 3,000 people were killed in the brutal attacks at the World Trade Center. While our city has recovered, we have not rebuilt. Families cannot mourn at a memorial for those innocent and brave men, women and children killed on that day. Business cannot return to its full capacity without a new transportation center. And the buildings that brought tens of thousands of workers to Lower Manhattan have not been rebuilt. When I took office in March, this complex project was shamefully off-track. That’s why shortly after I took office I asked the Port Authority to do a complete audit of the schedule and budgets for rebuilding the World Trade Center site.

“Today, we have a roadmap for transforming 16 acres of Ground Zero back into a robust area ready for business, transportation and tourism. I thank Port Authority Executive Director Chris Ward and Port Authority Board Chairman Anthony Coscia for their work on this comprehensive report. Over the past three months, Chris and his staff put all options on the table. They asked the hard questions. They made tough but practical decisions. And thanks to their hard work, I am proud to say that we have resolved the 15 fundamental issues that have stalled this project. As a result, we now know what we’re going to build; who’s going to build it; when it’s going to be finished; and how much it’s going to cost. We not only have deadlines for each project, we have multiple milestones for each one. I will hold the Port Authority accountable for hitting these milestone dates.

“We have solutions for the 15 major obstacles to the success of the project. These include:
- A simplified World Trade Center Transportation Hub that retains architect Santiago Calatrava’s vision, but delivers schedule and cost savings and increased transportation capacity;
- A construction solution that will allow the Memorial to open for the 10^th anniversary of September 11^th, in 2011;
- A strategy to construct Greenwich Street – the front door for Towers 2, 3 and 4 and a key access point to the Memorial – years before anticipated in June;
- Decisions on a series of issues that will give the Port Authority greater control over delivery of the Vehicle Security Center, which will serve as a key access point to all of the commercial development on the WTC site.
“We still have challenges to overcome. While we have made significant progress since June, this remains the most complex construction project in the world. New challenges will inevitably arise. But I am confident that—if we are candid, honest and accountable every step of the way—we will succeed in achieving what the people of New York deserve: a fully rebuilt site on an acceptable schedule and within an acceptable budget. Once again, my thanks to Chris Ward for his leadership, and I look forward to reaching our first milestones.”

Congressional Passage of Amtrak Reauthorization Bill

“Our highways and our airports are crowded to capacity. If we are to realize our full potential for growth in the 21st century, and if we are to move people quickly and in an energy-efficient way, there is only one realistic option: increasing the use of passenger rail.

“This is a good bill for states. The legislation authorizes $1.9 billion over five years for an intercity passenger rail capital grant program for which only the states are eligible. It also authorizes $1.5 billion over five years for high-speed rail grants, for which New York may apply.

“As the first New York State rail plan in over twenty years nears completion, it is essential to have the federal government and Amtrak as partners to complete the projects needed to provide reliable, frequent and higher-speed passenger rail service across our state.

“I applaud the Congress for passing this long-awaited legislation to reauthorize funding for Amtrak and federal rail programs. It will be a positive step forward for our state and our nation if this bill is signed into law."

Statement From Governor David A. Paterson on Congress' Approval of Full Liheap Funding

“The federal government’s commitment of $476 million in Low-Income Home Energy Assistance Program (LIHEAP) funds to New York will enable New York’s Home Energy Assistance Program (HEAP) to deal with what is expected to be a winter with significantly increased demand for aid in home heating bills for low-income families, senior citizens and the disabled. Congress’ action will significantly boost efforts to provide relief to cash-strapped New Yorkers unsure about how they will afford to heat their homes this winter heating season.

“New York State has already taken strong action to help at-risk residents get through this winter, and state agencies have come together to collaborate in an unprecedented fashion in addressing this vital issue. Earlier this month, the Office of Temporary and Disability Assistance (OTDA) announced significant increases in eligibility and benefits levels for the HEAP program, and raised the maximum grant to $800, the amount needed to guarantee eligible households a fuel delivery.

“I would like to thank Senator Schumer, Senator Clinton and the rest of our Congressional delegation for their hard work to secure additional funding to help vulnerable New Yorkers heat their homes this winter in the face of record-high energy costs. Now, President Bush must approve this measure, and I urge him to do so immediately.”

Changes to New York’s 2008-09 HEAP program being implemented by OTDA include:
- Increasing income eligibility to the maximum level permitted by federal level (for example, $45,312 per year for a family of four);

- Increasing regular and emergency benefits to $800 for delivered fuel customers, to enable them to purchase a minimum delivery of fuel given price increases, and raising the maximum regular benefit to $585 for all other customers; and

- Waiving the face-to-face application requirement for most applicants for emergency benefits
Additionally, New York State is working on number of fronts to improve energy efficiency and provide additional bill assistance to help lower energy bills this winter, including: - An emergency utility summit held yesterday by the Department of Public Service to discuss utility budget billing programs, community outreach efforts and other options for making bill payment easier, and consider enhancements to termination policies to reduce the likelihood of service disruptions during cold weather months;

- A $32 million increase in the amount of low-income funding, approved by the Public Service Commission (PSC) and provided by local utility companies and the New York State Energy Research and Development Authority (NYSERDA), to improve the energy efficiency of homes. NYSERDA will also spend an additional $2 million this winter to help more New Yorkers reduce their energy use while also keeping their homes heated; - $18.8 million for energy efficiency in the Con Edison and National Grid gas service territories; this funding, approved by the PSC, will provide efficiency services that will help to reduce natural gas bills for New York families, particularly low-income households, this winter; - A $5 million “Weatherization Blitz” offered by the New York Power Authority (NYPA), to customers served by municipal electric systems throughout Upstate New York. NYPA will distribute “do-it-yourself” kits and energy savings tip sheets to residents through these utilities that could result in energy savings in the upcoming months; - $10 million has been made available by the Long Island Power Authority (LIPA) to its low-income senior customers for direct bill payment assistance. In addition, LIPA will be expanding its support for improved energy efficiency in homes for all of its customers on Long Island and in New York City; and - Coordinating outreach and energy efficiency programs and services across State agencies to ensure better cooperation, flexibility, administrative efficiency and simplicity among government services.
In addition, the Governor’s Office is hosting the annual Winter Fuels Outlook meeting on Tuesday, September 30, 2008 at the State Capitol, bringing industry together with government to assess the outlook for energy prices and availability of supplies in the coming winter months.

Governor Patterson Hails Nation's First Global Warming Cap and Trade Auction A Success

Governor David A. Paterson today heralded the first auction for the Regional Greenhouse Gas Initiative (RGGI) as a success, setting an example for other states and the nation to follow. Governor Paterson opened the nation’s first-ever auction of carbon dioxide allowances when he and New Jersey Governor Jon S. Corzine rang the ceremonial bell at the New York Mercantile Exchange in Manhattan on Thursday, launching the nation’s most serious initiative yet to reduce emissions of greenhouse gases. All of the 12.6 million allowances offered on September 25th were sold at a clearing price of $3.07 per allowance, generating nearly $40 million of funding for investment in energy efficiency, clean and renewable energy technologies and strategies that reduce carbon dioxide.

“The result of this auction sends a clear signal that supporting investment in improved energy efficiency and clean and renewable energy technologies is prudent and fiscally sound. Demand was high and fears of low-ball bidding did not come to pass. Instead, RGGI has used market forces to set a price on carbon,” said Governor Paterson. “This is a strong indication that when New York participates in our first auction in December, it will also be a success. I hope our bold actions here will prove to be a turning point in the fight against global climate change.”

There were 59 entities from the energy, financial and environmental sectors bidding in the auction, indicating a robust interest in the first of many carbon dioxide allowance auctions. They sought 51.8 million allowances - four times the available supply for this first auction. Total revenue from the auction was $38.6 million, which will be distributed to the six RGGI states that offered allowances for sale during the first auction - Connecticut, Maine, Maryland, Massachusetts, Rhode Island and Vermont.

New York State is on track to participate in the next quarterly allowance auction. The regulations promulgated by the Department of Environmental Conservation and the New York State Energy Research and Development Authority (NYSERDA) will be final next week. New York State will offer about 13.1 million tons for an auction expected to be held on December 17, 2008. Based on the September results, New York could realize approximately $40 million in proceeds. Proceeds from the auction will go toward energy efficiency, alternative energy generation technologies, clean and renewable energy and other initiatives in each of the ten participating states: New York, Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, Rhode Island and Vermont.

By putting a price on carbon dioxide pollution through the RGGI auction, power plants will now have a financial incentive to reduce pollution.

Pete Grannis, New York State Commissioner of Environmental Conservation and Chair of the Regional Greenhouse Gas Initiative, Inc., said: “The ten RGGI states have demonstrated great leadership in coming together to offer this first carbon cap-and-trade system, and the smooth completion of the initial auction is proof that the RGGI is leading the nation in the battle against climate change. RGGI’s example shows that an open and competitive carbon market can be implemented.”

Garry Brown, Chairman of the New York State Public Service Commission, said: “We are pleased with the successful achievement of this initial auction and the signal it sends about the ability of states to collaborate. I applaud Governor Paterson on his efforts to marshal the State’s resources to combat the threat of global warming and reduce the effects of greenhouse gases.”

Vice President for Programs for NYSERDA, Bob Callender, said: “The success of the auction is a testament to the collaborative efforts of the states that comprise RGGI. Governor Paterson has made fighting global climate change one of the hallmarks of his administration and we look forward to working with our partners to develop and implement the programs that will reduce the emissions of greenhouse gases in New York State.”

About the Regional Greenhouse Gas Initiative

The ten Northeast and Mid-Atlantic states participating in RGGI have designed the first market-based, mandatory cap-and-trade program in the U.S. to reduce greenhouse gas emissions. Under RGGI, these ten states have established a cap or limit on the total amount of carbon dioxide pollution that power plants can emit into the air. Power plants over 25 megawatts that emit carbon dioxide must obtain pollution allowances to do so. These allowances, which are available by auction, give the power plants permission to emit carbon dioxide. The cumulative emissions of all carbon allowances may not exceed the amount set by the cap. Over time, the carbon cap is lowered incrementally, thus bringing down carbon emission levels. Participating states will stabilize power sector carbon dioxide emissions at the capped level through 2014. The cap will then be reduced by 2.5 percent in each of the four years from 2015 through 2018, for a total reduction of 10 percent. This approach will limit the region’s total contribution to atmospheric greenhouse gas levels.

For more information about RGGI, visit: http://www.rggi.org.