Directs NYSERDA to issue a request for proposals to identify cities, towns, or villages that are interested in participating in municipal-level energy efficiency and weatherization pilot projects to help decrease residential energy usage and reduce future capital costs for utilities; directs NYSERDA to identify three pilot areas focusing on the ability to replicate projects elsewhere and the costs and benefits to ratepayers both in the affected area and in the rest of the utility service territory.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A11556
SPONSOR: Rules (Conrad) TITLE OF BILL:
An act in relation to directing the New York state energy and develop-
ment authority to establish pilot programs addressing energy efficiency
and weatherization
PURPOSE OR GENERAL IDEA OF BILL:
NYSERDA will implement and fund 3 competitive pilot programs throughout
the state address improved energy efficiency and weatherization. The
energy efficiency and weatherization utility program budgets between
2026 and 2030 are expected to be an estimated $3.8 billion. To maximize
the impact of these funds, energy efficiency and weatherization programs
must be used efficiently, and projects resulting from these funds must
be welcomed by the local community. Municipal involvement will also help
facilitate the coordinated development of larger-scale residential ener-
gy efficiency and weatherization projects that result in significant
decreases in overall energy usage in local utilities, easing the burden
on the electric grid and helping to decrease the need for future capital
expenditures.
SUMMARY OF PROVISIONS:
Section 1 & 2 Establishes purpose and intent. Section 3: Review of
federal, State, and utility provided resources and establishes proce-
dures for village and municipal collaboration. Section 4: To ensure
these resources are used effectively, the legislature directs the New
York state energy research and development authority to coordinate
activity between municipalities, the public service commission and local
utilities in the advancement of large-scale municipal-level energy effi-
ciency residential weatherization pilot projects. The remainder of this
section stipulates how the pilot projects will be reviewed and the
criteria each should address. 2. (a) After reviewing the municipal
responses, NYSERDA shall identify 2 three targeted pilot areas, focusing
on the ability to replicate 3 projects elsewhere and the costs and bene-
fits to ratepayers both in the affected area and in the rest of the
utility service territory. (b) In each of the three identified targeted
pilot areas, NYSERDA, in consultation with the city, town, or village,
shall: (i) conduct, or have conducted, energy audits, including but not
limited to identifying air leaks, examining insulation, inspecting all
heating and cooling systems and ductwork, and inspecting electrical
wiring and identifying electrical capacity, using existing resources;
(ii) outline the scope of work to be conducted based on such audits, and
the estimated cost of such projec ts; (iii) complete, or have completed,
such work first using funding from existing weatherization or energy
efficiency programs or funding, including but not limited to, EmPower+,
funding for green rehabilitation projects, and programs administered by
electric corporations, gas corporations or combination electric and gas
corporations; and (iv) in the event that existing funding is not suffi-
cient, request the public service commission to initiate a proceeding to
pay for necessary energy efficiency and weatherization costs, not other-
wise eligible to be paid for by existing federal or state programs, or
programs within the utility service territories of the selected munici-
palities. (c) Any such proceeding initiated pursuant to this subdivision
designed to pay for energy efficiency and weatherization costs not
covered by existing programs, shall only authorize the collection of
funds in an amount less than or equal to the amount saved by the munici-
pal-level energy effective residential weatherization pilot projects
resulting from estimated avoided utility capital investments or other
means. When evaluating the NYSERDA request, the public service commis-
sion shall ensure that any such request would not negatively impact the
safe and reliable operation of the local distribution system and would
not result in a net increase in costs to ratepayers. The pilot projects
shall be subject to the provisions of section 5 224-d of the labor law.
JUSTIFICATION:
Energy efficiency programs are one of the most effective methods of
conserving energy and helping to avoid the need for costly electric
plant upgrades. This bill creates the process for NYSERDA to award three
large-scale residential energy efficiency and weatherization projects
that result in significant decrease in overall energy usage in local
utilities, easing the burden on the electric grid and helping to
decrease the need for future capital out expenditures. The bill also
provides a mechanism for the public service commission to review funding
levels if the caps are exceeded. This will ensure that ratepayers will
not be negatively impacted by the projects implementation.
PRIOR LEGISLATIVE HISTORY:
New bill
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
To Be determined
EFFECTIVE DATE:
This act will take effect immediately.
