NYC to spend billions to cut greenhouse gases

By Joan Gralla

NEW YORK (Reuters) - New York City will spend $2.3 billion to cut greenhouse gas emissions from municipal buildings and operations by 30 percent in 30 years, Mayor Michael Bloomberg said on Monday.

The city aims to cut 1.68 million metric tons of carbon dioxide equivalents a year from 2006 levels by 2017, with measures ranging from improved heating and cooling systems to fixing methane leaks at water treatment plants and using that gas to run electric generation equipment.

"The city is doing its part, I hope the private sector follows our example and finds conservation savings of their own," Bloomberg said in a statement. The city's government consumes about 6.5 percent of the city's total energy use, and 10 percent of its peak electricity demand.

"It's a cost that, as we know, is likely to grow as energy prices never seem to stop climbing," Bloomberg said at a news conference, saying he believes the city can achieve the results with existing technology.

Bloomberg said the city should break even on its investments, on an annual cash flow basis, by 2013.

"By 2015, we project we will have saved more on our energy bills than we will have spent on all our planned investments to that point," Deputy Mayor Ed Skyler said.

The program will partly be funded with 10 percent of the city's energy budget -- about $100 million in the current fiscal year.

Improved heating, cooling and ventilation systems in city buildings will be used to accomplish 57 percent of the total reductions, Bloomberg said in a statement.