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Now that New York has its first on-time (and reduced) budget in years, businesses and developers need to look at what it means. Most important for those in the energy field, it's important to understand "Recharge New York" (RNY) the replacement for the often-extended Power For Jobs (PFJ) program. The problem with extended programs is that business can't make investment decisions based on incentives that are here one day and gone the next. So the new Recharge New York program is important.

First, it does extend PFJ one more time, until June 2012. Then it doubles the amount of electricity available, to 910MW. This will come from a mix of NYPA hydropower resources and market power. This low-cost power will be available on 7-year contracts, providing substantial assurance of long-term electricity price for businesses that rely on it. Applications for the program will be reviewed by the Economic Development Power Allocation Board to ensure that the program will create and retain jobs in New York.

Just as important, the new program provides consideration for current PFJ participants who may not be eligible for the new program, giving them a four-year transitional discount as they are moved out of the program. Very fair.

For once, our leaders seemed to understand: economic development in New York is constantly hampered by high energy costs, but it is just as hampered by the uncertainty of incentive programs. It's impossible to make an investment when the critical financial component may be pulled away from a project. Recharge New York looks like a significant, permanent assurance of support for developing business and jobs in New York.

For more details, take a look at the Governor's bill memo, and keep an eye out for news about the program from the New York Power Authority.

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Often, we hear from clients who are well underway with project planning, have heard there are incentives and good reasons for making renewables part of their project - but they've already ordered their backup power, they've already set up their power purchase, they've already constrained the site. So in the end, despite best intentions, the best they'll end up with is some supplementary solar or high-efficiency appliances. They've missed the opportunity to green the project, and they've missed out on the long-term savings they could achieve.