Establishes the green affordable pre-electrification program to assist owners and tenants in residential properties in curing structural and building code defects which render the properties ineligible for improvements or projects relating to energy savings, green-house gas emissions reductions, climate change adaptation and resiliency project grants; establishes the energy efficiency and electrification interagency coordination group to coordinate between certain energy efficiency programs.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A2101A
SPONSOR: Kelles TITLE OF BILL:
An act to amend the private housing finance law, in relation to estab-
lishing the green affordable pre-electrification program and the energy
efficiency and electrification interagency coordination group
PURPOSE OR GENERAL IDEA OF BILL:
to fill the gap that exists because residential buildings sometimes need
certain types of rehabilitation work before they can be eligible for
funding for programs relating to energy efficiency and weatherization
and to improve coordination across related programs so more low and
moderate income people can benefit from these programs
SUMMARY OF PROVISIONS:
Sec. 1- adds a new Article 33 to the private housing finance law to
establish a green affordable pre-electrification program, to be adminis-
tered by the Division of Housing and Community Renewal in consultation
with NYSERDA, in order to fund and provide technical assistance for
projects to address structural deficiencies or code violations or other
problems in residential buildings thereby making such buildings eligible
for municipal, state or federal funding for residential energy efficien-
cy, electrification, weatherization, installation of insulation, and
resiliency programs; gives priority to projects in disadvantaged commu-
nities; provides for labor protections and tenant protections for pre-e-
lectrification projects under the program; establishes an Energy Effi-
ciency & Electrification interagency Coordination Group to facilitate
the interagency coordination of both renovations required prior to ener-
gy efficiency and electrification measures and of the energy efficiency
& electrification measures themselves;
Sec. 2 - effective date
A-print of the bill shifts the program from NYSERDA to DHCR and estab-
lishes the energy efficiency and electrification interagency coordi-
nation group
JUSTIFICATION:
According to the New York State Department of Environmental Conserva-
tion, emissions from the construction and operation of buildings
comprised 32% of the State's total greenhouse gas emissions (GHGs) in
2022. Of this total, the combustion of fossil fuels in residential
buildings accounted for 34%, with an additional 33% deriving from emis-
sions from imported fuels.
Electrification of existing buildings is key to the reduction of these
GHGs and the achievement of the CLCPA's goal of an 85% reduction in
statewide GHG emissions from 1990 levels by 2050. Per the New York State
Climate Action Council, "switching from fossil fuels to heat pumps for
heating and hot water will immediately and significantly reduce GHG
emissions and criteria pollutants from buildings". To reach this target,
NYSERDA analysis shows the state must electrify 250,000 buildings per
year. The State of New York is already investing substantial amounts
toward electrifying residential buildings, having committed $250 million
over five years to a Climate Friendly Homes Fund which intends to elec-
trify 10,000 homes.
However, a significant portion of the State's building stock is old and
in disrepair, blocking its access to building decarbonization and resi-
liency assistance. Units in 5- to 50-unit buildings constitute nearly
20% of the housing stock in New York State, almost 70% of the tenants in
these buildings are low- and moderate-income, and more than 1,3 million
units in such properties are heated by non-electric equipment that is
over 15 years old and nearing or beyond replacement age. These buildings
may have inadequate electrical systems to handle the installation of
high-efficiency heat pumps, and/or envelope issues that would reduce the
efficiency of electrification strategies, and/or environmental hazards
like mold, lead-based paint, or asbestos which must be addressed before
electrification can begin.
State and federal energy efficiency and weatherization programs do not
cover the cost to make prerequisite upgrades addressing structural defi-
ciencies or mitigating health and safety issues. Thus, there is a crit-
ical need to support such improvements for the state to adequately
decarbonize the building sector towards our climate goals.
This bill would close the gap in current programs by funding prerequi-
site upgrades not currently supported by existing funding programs, and
help make it possible for our State to meet its climate goals. It would
assist low-to-moderate (LMI) households to overcome the barriers to
weatherizing and/or electrifying their homes, finally enabling them to
take advantage of weatherization and electrification assistance provided
through Next Energy NY, the Clean Energy Fund, and the Federal Inflation
Reduction Act.
PRIOR LEGISLATIVE HISTORY:
A9170 of 2023-24 - referred to Corporations, Authorities and Commissions
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
State fiscal impact to be determined; no local impact.
EFFECTIVE DATE:
Immediately
