By Rebecca Martin
A proposed 250-megawatt battery energy storage facility in the Town of Ulster is drawing increased scrutiny from local residents and officials. The project would install lithium-ion batteries housed in 14-foot-tall containers across nearly 12 acres of the former John A. Coleman Catholic High School property adjacent to the City of Kingston and Town of Hurley. There are many names being mentioned, but our understanding – based on the application submitted to the Town of Ulster – is that the project is called the Alcazar Energy Storage Project. It is being developed by U.S.-based Terra-Gen (Vice President Mark Turner), a subsidiary of Masdar , the renewable energy company owned by the Abu Dhabi government, and funded by the international clean energy investor Alcazar Energy. You should inquire who is who. It’s all pretty confusing.
On June 18, the Town of Ulster hosted a public meeting where dozens of residents raised concerns about the project’s safety, transparency, and potential environmental and financial impacts at the end of the meeting. At the end of the meeting, Hurley Town Supervisor Mike Boms, representing the neighboring community that borders the project site, asked important questions – something great to hear. You can listen to the public comments starting at approximately 54:42 in the audio file available in the Google Doc files linked above.
Virtual Community Meeting Scheduled for July 2
In response to public pressure, Alcazar Energy (the project applicant) has scheduled a virtual community meeting on Tuesday, July 2 at 7:00 p.m. to discuss potential adverse impacts of the project on residents in Ulster, Hurley, and the City of Kingston. Questions can be submitted in advance to: info@ulstercleanenergy.com . Terra-Gen Vice President Mark Turner is expected to respond live.
While this meeting is a welcome opportunity for engagement, it would have been far more beneficial if held before the developer submitted their application, which triggered the formal environmental review process under SEQR. Early engagement could have helped shape the project in a way that better reflects community needs and concerns.
Backtrack on SEQR: Concerns Emerge Over Review Process
On May 15, the Town of Ulster declared its intent to serve as lead agency for the project’s environmental review under the State Environmental Quality Review Act (SEQR). However, this step was taken before confirming all involved agencies were properly identified in the Environmental Assessment Form (EAF).
Under SEQR, any government agency not listed in the EAF can be excluded from the review process, even if they have decision-making authority over permits or financial incentives.
The Town is now completing Parts 1, 2, and 3 of the EAF, steps often reserved for the end of the review process just before issuing a Negative Declaration (a finding of no significant impact).
This project clearly meets SEQR’s legal threshold for issuing a Positive Declaration, which requires preparing a full Draft Environmental Impact Statement (DEIS) and initiating a public scoping process. The scoping process is vital for public input, and to identify and evaluate potential significant environmental impacts, such as battery fire safety, emergency response, and other risks. Under SEQR, the presence of just one potential significant adverse impact is enough to trigger a Positive Declaration.
A Positive Declaration also ensures the public can formally shape the scope of environmental studies, keeping the process transparent and accountable. While SEQR customarily allows for a 30-day public scoping period, given the size and complexity of this project, the public should advocate for an extended 90-day scoping period to ensure sufficient time for review and input.
For a simple explanation of SEQR, read “The SEQR Cookbook” a process overseen by the New York State Department of Environmental Conservation (NYSDEC). The process requires state and local government agencies to consider the environmental impacts of their actions (the project) during their decision-making process.
PILOT Concerns: Who Pays, Who Decides?
Community members should use the July 2 meeting to ask critical financial and procedural questions. Chief among them: Does Terra-Gen plan to apply for a Payment-in-Lieu-of-Taxes (PILOT) agreement through the Ulster County Industrial Development Agency (UCIDA)?
If so, why is UCIDA missing from the Environmental Assessment Form (EAF)? SEQR requires that all involved agencies be disclosed at the outset, and omitting UCIDA could exclude tax-related impacts from the formal environmental review.
Even more significantly, if the PILOT deviates from New York State’s standard PILOT schedule – as many large energy projects do – then the City of Kingston Board of Education should likely be listed as an involved agency, since school districts are entitled to approve or reject deviated PILOTs.
In addition, New York State Energy Research and Development Authority (NYSERDA) may also be involved if public energy incentives are sought. A 2019 PV Magazine article identified over $8 million in NYSERDA incentives initially offered to a previous developer (GlidePath) for a nearby site, though smaller in scale (25MW). Whether those incentives are still available or being pursued by Terra-Gen remains unclear and should be addressed.
Strategic Siting: Are Standalone Batteries the Best Fit?
Critics point out that battery storage projects this large are most effective when co-located with major renewable energy generation, such as large wind farms. Terra-Gen is already developing:
Yet this proposed battery facility is not located near any such generation. In Ulster County, we have been focused on developing more local solar farms, but they are intermittent and typically consumed on-site, meaning there’s little excess to store and shift during overnight hours. Without a viable renewable energy source to pair with, some question the value of a large standalone battery facility in the Town of Ulster (and especially lithium-ion) if they rely on fossil-fuel-generated grid electricity during peak times.
Take Action
Before moving forward, the Town of Ulster should send the EAF back to Alcazar for revisions to include all relevant agencies such as potential UCIDA, the City of Kingston School District, NYSERDA, and others. The Town should then issue a Positive Declaration under SEQR, recognizing the clear potential for significant environmental impacts, and approve a 90-day public scoping process. These critical steps guarantee a thorough environmental review, meaningful public involvement, and proper consideration of all impacts. SEQR’s effectiveness depends on strict adherence to these requirements to protect the community’s health, safety, and well-being.
Key Questions to Ask Terra-Gen
- Will Terra-Gen apply for a PILOT through UCIDA? If yes, why is UCIDA missing from the EAF?
- Since the project site is within the City of Kingston School District, which would be affected by any deviated PILOT impacting school tax revenues, why is the school district not listed as an involved agency in the EAF?
- Why are other likely involved agencies like NYSERDA omitted? If Terra-Gen is pursuing grants, subsidies, or renewable energy credits through NYSERDA, why are these programs and the agency not disclosed in the EAF?
Questions for the Town of Ulster as Lead Agency
- Under SEQR, a Positive Declaration must be issued if there is potential for even one significant adverse environmental impact. Given the scale and nature of this project, isn’t a Positive Declaration clearly warranted?
- Will the Town commit to a 90-day public scoping period to provide the community with adequate time and opportunity to shape the scope of the environmental review and ensure all concerns are fully addressed?
The SEQR process may seem intimidating at first, but if you break it down into smaller steps, it’s actually quite easy to understand. If you have any questions about how it works, I can try to help. Feel free to call me at 845-750-7295.
We support battery storage and want to see more renewable energy in our community, but it must be done correctly. Your voice matters. Keep working with your elected officials to ensure transparency, accountability, and a thorough environmental review before this project moves forward.
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