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Infrastructure News - May 2006

Report Urges New Power Plants in New York

Industry groups beat the drum again on the risk of an energy supply shortage in New York and the need for power plant construction. Also, New Jersey plans to boost transportation infrastructure spending.

Power Plant Construction Again Urged

New York is still in dire need of significant new electricity resources to meet the demands of planned residential and commercial development, according to an updated report from the New York Building Congress on the region's power capacity.

The report by the organization's energy committee, in tandem with other area associations such as the Building and Construction Trades Council of Greater New York, the Real Estate Board of New York, and the Natural Resources Defense Council, found that the city will need between 6,000 to 7,000 MW of new supply over the next 20 years due to economic growth and a growing population. To meet the demand, the report argues for additional generating capacity and an expanded distribution infrastructure.

The report calls for construction of power plants, transmission and distribution facilities, and natural gas pipelines, as well as expanded use of onsite energy efficiency programs and renewable energy sources such as wind and solar power. It also recommends reintroducing mechanisms such as Article X, a state law that had streamlined siting procedures for new power plants but which expired in December 2002. The report blames the law's absence for a dearth in new plant projects.

According to the building congress report, total employment in New York City is expected to grow 20 percent over 2002 levels by 2025, while the city's population is expected to rise 16 percent over the same time period, with the largest gains expected in Queens. In addition, increased use of equipment such as air conditioners and computers has led to an average annual increase in energy demand of 1.5 percent, a trend expected to continue despite more efficient technologies.

Fifteen new projects are expected to require significant additional power capacity in the city by 2010, such as: large scale redevelopments of the World Trade Center site in Lower Manhattan and Queens West in Long Island City; office towers such as the New York Times and Goldman Sachs buildings in Manhattan; and infrastructure projects such as the Fulton Street Transit Center and several water pollution control and filtration plants. By 2025, 10 more major projects such as the East Side Access program to bring Long Island Rail Road trains to Grand Central Station and the Atlantic Yards mixed-use development in Brooklyn are expected to require 500 MW of additional power each.

Several active power plant projects are wrapping up in New York. An additional 1,000 MW is coming online with completion of the New York Power Authority's 500-MW Poletti Plant and a 500-MW plant developed by SCS, both in Astoria. In the pipeline are Reliant's 562-MW Phase I and II Repowering Project in Astoria and the 500-MW second phase for the SCS complex. The building congress report urges fast-track approvals for both.

Another report expected to outline the region's power needs is currently under development by the Bronx Borough President's office and the New York Affordable Reliable Electricity Alliance.

N.J. Transportation Trust Fund Gets Fix

New legislation in New Jersey has introduced several reforms that aim to improve fiscal management of the state's Transportation Trust Fund and will boost its size to $1.6 billion annually for the next five years.

Signed into law in late March by Gov. Jon Corzine, the plan restructures $1.8 billion in existing transportation bond debt. It also redirects 1.5 cents of the state's 10.5-cent gas tax and $12 million in toll road receipts to the fund. Other reforms limit the amount of funds for capital maintenance projects and establish an independent policy oversight board.

The resulting program will earmark $925 million annually for New Jersey Department of Transportation infrastructure projects and $675 million annually for New Jersey Transit infrastructure repairs and rolling stock. It also advances funding for major capital projects such as the Trans Hudson Express Tunnel, which would add two commuter rail tunnels under the Hudson River from New Jersey to Midtown Manhattan.

Tappan Zee Planning Advances

A trio of government agencies in New York is preparing to develop a Draft Environmental Impact Statement and to eventually recommend a locally preferred alternative among six potential long-term fixes for congestion on the Tappan Zee Bridge and the Interstate 287 corridor.

After several years of public review, the agencies narrowed the list to six alternatives last fall. The New York State Thruway Authority, Metropolitan Transportation Authority's Metro-North Railroad, and New York State Department of Transportation will now conduct further analysis of the chosen options in order to prepare a draft environmental impact statement required by federal law.

The seven-lane, 3.1-mi.-long Tappan Zee Bridge, connecting Westchester and Rockland counties over the Hudson River's widest point, carries an average of 135,000 vehicles daily, reaching 170,000 vehicles at peak times. Models created by the agencies project traffic volume on the bridge and surrounding corridor will rise 20 to 30 percent by 2020.

The six alternatives emerged from 150 initial proposals to improve the bridge.

The first two of the final six alternatives, expected to cost between $500 million and $700 million in 2004 dollars, retain the existing bridge but would make transportation corridor improvements. Both would fully redeck the structure but not change existing approaches or road alignments.

The remaining four alternatives all feature a new bridge, new cross-corridor rail service between Suffern in Rockland and Port Chester in Westchester, and highway improvements in Rockland County. Those options have costs of $5 billion to $14.5 billion in 2004 dollars, depending on the type and scope of the commuter rail tracks or light rail transit lines.

Among the rejected options were multibillion-dollar proposals to build a new tunnel under the Hudson.

More Aid for Manhattan Parks

The agency overseeing redevelopment of Lower Manhattan allocated nearly $20 million dollars for local parks earlier this year.

The Lower Manhattan Development Corp. board of directors assigned $19.5 million to redevelop or create parks and open spaces, adding to the $100 million in Lower Manhattan parkland money that the agency has already approved. Overall, the funds will allow the development of more than 135 acres of open space in a program also involving the New York City Department of Parks, local community boards, and the Arts Commission, together overseeing development on all of the parks.

The parks receiving the new money include James Madison, Canal Varick Laight, Sara D. Roosevelt, Pike/Allen St. Malls, Collect Pond Park, and Washington Market. The work entails renovation, planting, and installation of features such as drainage, water supply lines, fountains, lighting, and public toilets.

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