The Real Green New Deal - by John Rynne

There are a lot of misconceptions about the Green New Deal. It’s became a political hot potato when it was presented in the House of Representatives as a non-binding resolution in early 2019. The fact is the basis of the Green New Deal started well over a decade ago. I call it the Real Green New Deal. The one that was presented in 2019 was over the top with a radical plan and large drawbacks. The Real Green New Deal has spurred on huge technology advances in energy and battery storage technology.

As an example, in semi-rural Genesee County (Batavia) between Buffalo and Rochester, the high tech Science and Technology Advanced Manufacturing Park (STAMP) is under way which has been in the planning stages for at least a decade in the Town of Alabama. 1366 Technologies was going to be the main occupant which was going to produce components for solar panels. However, the failure to secure a $150 million Federal Department of Energy loan resulted in the company relocating the plant outside the U.S. In spite of this, the STAMP plan continues. LeChase Construction Services was to be the contractor for the Phase I water work around the STAMP site. The overall STAMP project provides the potential to create 11,500 high tech jobs. The 2020-2021 budget for the Genesee County Economic Development Center (CGEDC) includes $25.5 million for the continuing development of Phase I and Phase II. Plug Power Inc. plans to build a $232.7 million green energy technology facility on a 29.884-acre site. Recently, the Genesee County Economic Development Center will consider approving final incentive for a $345 million solar project in the Town of Byron and construction of a campus-wide substation at the Science and Technology Advanced Manufacturing Park. Next Era Energy Inc. is planning this project which will be called the Excelsior Energy Center to be located in multiple agricultural properties in the Town of Byron. It will be building a solar generation system and a four-hour energy storage system that will be interconnected with the electric grid. A 20-year PILOT program is estimated to generate payments of over $45.2 million in a 20-year term.

Plug Tower Inc. is planning to invest $55 million toward a campus wide substation at the STAMP site which will enable 100% renewable reliable electricity less than current rates to future tenants in partnership with the New York Power Authority and National Grid. This is in addition to the $232.7 million green energy technology that they have already planned. Forefront Power LLC (Elba Solar) reportedly will invest $9.7 million to build a community solar project on Norton Rd. in the Town of Elba. This project will contribute an estimated $518,803 over a 15-year period to the tax base. There are also plans by BW Solar for a proposed community solar project on Oak Orchard Rd. in the Town of Elba which will cost approximately $7.326 million. In addition, Solar Liberty in the Town of Pembroke is planning a $7.7 million project for solar energy. In Genesee County, farmland currently rents in the range of $125/acre annually. Solar array sites reportedly rent for $1,000-$1,200 per acre. This is only one small county, but it represents not the exception but the rule for many semi-rural counties.

Many of these are community-scale arrays are defined as those that generate 20 megawatts or less; most of which are 5 megawatts of power. A megawatt is equal to 1 million watts or 1,000 kilowatts. 1 megawatt of solar panels will generate energy for more than 1,000 houses per year. The average U.S. home consumes 7,200 kilowatts in a year. There are currently 145,000 community-scale solar arrays in New York State that are producing 2,800 megawatts. Solar panel arrays and wind turbines have sprung up in most of the 62 counties in New York State and across the country. Genesee County is just a microcosm of the big picture.

The shadow of the Real Green New Deal will continue to grow. Exxon Mobil which is one of the largest fossil fuel providers in the world has a 12-person board. Last month, two anti-fossil fuel activists were elected to the board. The continued relative low fossil fuel costs will challenge the feasibility of the Real Green New Deal. Thus, there will be some continued skepticism. Even the Real Green New Deal movement will have its setbacks. However, it’s far better than what was presented in the House of Representatives in early 2019.

In summary, the Real Green New Deal will be an enhancement to capitalism and real estate. It will not be a danger as long as there is a slow phase out of fossil fuels and the fast phase out of subsidies to the solar and wind industry.

John Rynne, MAI, SRA, is the president and owner of Rynne, Murphy & Associates, Inc., Rochester, N.Y.