senate Bill S5286A

Relates to the green jobs-green New York on-bill energy service company energy efficiency payment program

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 15 / May / 2013
    • REFERRED TO ENERGY AND TELECOMMUNICATIONS
  • 08 / Jan / 2014
    • REFERRED TO ENERGY AND TELECOMMUNICATIONS
  • 27 / Feb / 2014
    • 1ST REPORT CAL.185
  • 03 / Mar / 2014
    • 2ND REPORT CAL.
  • 04 / Mar / 2014
    • ADVANCED TO THIRD READING
  • 09 / Jun / 2014
    • AMENDED ON THIRD READING (T) 5286A
  • 17 / Jun / 2014
    • PASSED SENATE
  • 17 / Jun / 2014
    • DELIVERED TO ASSEMBLY
  • 17 / Jun / 2014
    • REFERRED TO ENERGY

Summary

Relates to the Green jobs-green New York on-bill energy service company energy efficiency payment program to permit financing for energy efficient services through utility company billing.

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Bill Details

Versions:
S5286
S5286A
Legislative Cycle:
2013-2014
Current Committee:
Law Section:
Public Service Law
Laws Affected:
Add §66-n, Pub Serv L; amd §242, RP L

Sponsor Memo

BILL NUMBER:S5286A

TITLE OF BILL: An act to amend the public service law and the real
property law, in relation to establishing on-bill energy services compa-
ny energy efficiency payment program

PURPOSE OR GENERAL IDEA OF BILL: To establish an on-bill financing mech-
anism for Energy Services Corporations (ESCO's) in the State of New York
in order to promote efficiency upgrades for residential and small
commercial customers that will result in the creation of green jobs and
reductions in emissions.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1: Amends the public service law to add a new section 66-n that
directs the Public Service Commission to require combined gas and elec-
tric utility companies to provide a program to allow ESCO's to utilize
on-bill financing pursuant to a written contract and regulations of the
commission Requires each combined gas and electric utility company to
submit an implementation plan for approval by the commission requires
the credits from such program to be applied to each utilities targets
pursuant to the energy efficiency portfolio standard and allows for
suspension of the program pursuant to a hearing and direction of the
commission. Lays out the specific requirements of the program as it
relates to bill payments, processing, and handling of accounts in
arrears and Defines qualified energy efficiency services and participat-
ing energy services company.

Section 2: Amends the Real Property tax law to require property disclo-
sure before purchase of any property subject to a loan pursuant to this
program.

Section 3: Sets forth the effective date.

JUSTIFICATION: In 2009, the Legislature adopted the landmark "Green Jobs
Green New York Act" to spur the development of green collar jobs,
increase installation of energy efficiency systems and improve our envi-
ronment. In 2011, the Legislature took a further step when it estab-
lished the on-bill recovery program at NYSERDA. Unfortunately the poten-
tial that was contemplated in those two programs has not been realized
since the uptake has not met expectations.

The goal of this bill, like that of the Green Bank that has been author-
ized by the Public Service Commission, is to leverage the experience and
skills of the private sector to promote efficiency and create green
jobs. Energy Service Companies (ESCO's) are in the business of marketing
and selling efficiency services, and they are highly motivated to do so,
since they are reliant on private sector investment and capital. This
bill would create an ESCO on-bill recovery mechanism on a customer's
utility bill. This mechanism will make payback simpler for the customer
and also demonstrate to the customer that the energy savings effectuated
by the efficiency upgrades are allowing for the loan to be paid back,

with the savings, thereby not increasing the customer's monthly utility
bill. Once the loan is repaid, the customer will enjoy a lower bill
permanently as a result.

This bill does not require any investment of money from NYSERDA or any
state agency. The money committed in 2009 and 2011 would remain right
where it is now All this bill does is allow an ESCO to sell efficiency
products to customers as they do now, while providing the customer with
the easiest method to repay the loan on their utility bill The bill also
allows the utility companies reasonable recovery of costs from the ESCO
for any costs incurred and refers any and all customer complaints to the
ESCO for resolution. Unleashing the private sector by allowing an
on-bill financing mechanism for ESCO efficiency upgrades will allow New
York State to more readily meet its emissions reduction goals and allow
the original intent of the 2009 and 2011 statutes to be more readily
carried out - without investing a dime of taxpayer money or proceeds
from the Regional Greenhouse Gas Initiative carbon auction. This bill
represents a win-win for the environment, the economy, and customers.

PRIOR LEGISLATIVE HISTORY: This is a new bill.

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: None.

EFFECTIVE DATE: This act shall take effect immediately.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 5286--A
    Cal. No. 185

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              May 15, 2013
                               ___________

Introduced  by  Sen. MAZIARZ -- read twice and ordered printed, and when
  printed to be committed to the Committee on  Energy  and  Telecommuni-
  cations  --  recommitted  to  the Committee on Energy and Telecommuni-
  cations in accordance with Senate Rule 6, sec. 8 -- reported favorably
  from said committee, ordered to first and second report, ordered to  a
  third  reading,  amended and ordered reprinted, retaining its place in
  the order of third reading

AN ACT to amend the public service law and the  real  property  law,  in
  relation  to establishing on-bill energy services company energy effi-
  ciency payment program

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  The public service law is amended by adding a new section
66-n to read as follows:
  S 66-N.   ON-BILL ENERGY SERVICES COMPANY  ENERGY  EFFICIENCY  PAYMENT
PROGRAM.  1. (A) THE COMMISSION SHALL REQUIRE EACH COMBINED ELECTRIC AND
GAS UTILITY TO PROVIDE A PROGRAM FOR THE BILLING AND THE  REMITTANCE  OF
PAYMENTS RECEIVED FOR THE PAYMENT OF CONTRACTUALLY OBLIGATED PAYMENTS OF
ITS  PARTICIPATING  CUSTOMERS  FOR ENERGY EFFICIENCY PROGRAMS AS DEFINED
HEREIN PROVIDED BY A NEW YORK ENERGY SERVICES COMPANY  AND  APPROVED  BY
THE COMMISSION. TO THE MAXIMUM EXTENT PRACTICABLE, COMBINED ELECTRIC AND
GAS  UTILITIES  SHALL  UTILIZE  EXISTING  BILLING  PROCESSES ESTABLISHED
PURSUANT TO TITLE NINE-A OF ARTICLE EIGHT OF THE PUBLIC AUTHORITIES LAW.
  (B) THIS PROGRAM SHALL BE AVAILABLE TO CUSTOMERS WHO  HAVE  A  WRITTEN
CONTRACT  PROVIDING  FOR ON-BILL PAYMENT FOR QUALIFIED ENERGY EFFICIENCY
SERVICES PROVIDED HOWEVER, THAT SUCH  CUSTOMERS  MUST  BE  THE  COMBINED
ELECTRIC  AND  GAS  UTILITIES'  CUSTOMER OF RECORD TO WHICH SUCH ON-BILL
PAYMENT CHARGES WILL APPLY.
  (C) THE COMMISSION SHALL PROMULGATE REGULATIONS TO IMPLEMENT A PROGRAM
PURSUANT TO THIS SECTION WHICH SHALL INCLUDE BUT NOT BE LIMITED  TO  THE
FOLLOWING: A REQUIREMENT FOR A CONTRACT BETWEEN THE PARTICIPATING ENERGY

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10998-04-4

S. 5286--A                          2

SERVICES  COMPANY  AND  CUSTOMER  WHICH INCORPORATES A SPECIFIC AUTHORI-
ZATION BY THE CUSTOMER OF THE ON-BILL PAYMENT MECHANISM, A HOLD HARMLESS
PROVISION APPLICABLE TO THE COMBINED ELECTRIC AND GAS UTILITY  FROM  ANY
LIABILITY  ARISING FROM THE CONTRACT BETWEEN THE ENERGY SERVICES COMPANY
AND  CUSTOMER,  ESTABLISHING  PARTICIPATION  REQUIREMENTS   FOR   ENERGY
SERVICES  COMPANIES,  ESTABLISHING  A  METHOD  FOR  NOTIFICATION  BY THE
PARTICIPATING ENERGY SERVICES COMPANY TO THE COMBINED ELECTRIC  AND  GAS
UTILITY  AND  THE COMMISSION OF THE CUSTOMER AGREEMENT TO PARTICIPATE IN
THE PROGRAM AND THE BILLING AMOUNT FOR THE ON-BILL PAYMENT,  A  SCHEDULE
FOR  REMITTANCE  OF FUNDS RECEIVED FROM ON-BILL PAYMENTS, AND SUCH OTHER
REGULATIONS REQUIRED FOR IMPLEMENTATION.
  (D) A COMBINED ELECTRIC AND GAS  UTILITY  SHALL  NOT  BE  REQUIRED  TO
PROVIDE ON-BILL PAYMENT FOR SERVICES THAT ARE NOT QUALIFIED ENERGY EFFI-
CIENCY SERVICES.
  (E)  ON-BILL  PAYMENT CHARGES BILLED PURSUANT TO THIS SECTION SHALL BE
EXCLUDED FROM ANY DETERMINATION OF A UTILITY COMPANY'S  GROSS  OPERATING
REVENUES  DERIVED  FROM  INTRASTATE  UTILITY  OPERATIONS FOR PURPOSES OF
SECTION EIGHTEEN-A OF THIS CHAPTER.
  (F) WHEN A COMPLAINT IS RECEIVED BY A COMBINED ELECTRIC AND GAS UTILI-
TY COMPANY THAT IS RELATED TO WORK PERFORMANCE IN CONNECTION WITH QUALI-
FIED ENERGY EFFICIENCY  SERVICES  BY  A  PARTICIPATING  ENERGY  SERVICES
COMPANY  SUCH  UTILITY  COMPANY  SHALL  ONLY  BE  REQUIRED TO DIRECT THE
CUSTOMER TO CONTACT THE ENERGY SERVICES COMPANY AND INFORM THE  CUSTOMER
TO  CONTACT  THE  COMMISSION  IF A RESOLUTION CANNOT BE REACHED WITH THE
ENERGY SERVICES COMPANY. SUCH COMPLAINTS  SHALL  NOT  BE  DEEMED  TO  BE
COMPLAINTS ABOUT THE UTILITY SERVICE OR ENERGY SERVICE COMPANY'S COMMOD-
ITY SERVICE IN ANY OTHER COMMISSION ACTION OR PROCEEDING.
  (G)  THE COMBINED ELECTRIC AND GAS UTILITY SHALL NOT BE LIABLE FOR ANY
ACTIONS OR DAMAGES ARISING OUT OF  THE  CONDUCT,  WHETHER  NEGLIGENT  OR
INTENTIONAL, OF A PARTICIPATING ENERGY SERVICES COMPANY AND SUCH COMPANY
SHALL  INDEMNIFY  AND  HOLD  HARMLESS  THE UTILITY AGAINST LIABILITY FOR
DAMAGE CONTRIBUTED TO, CAUSED BY, OR RESULTING FROM  THE  NEGLIGENCE  OR
OTHER CULPABLE CONDUCT OF THE PARTICIPATING ENERGY SERVICES COMPANY.
  (H) A COMBINED ELECTRIC AND GAS UTILITY MAY PROVIDE MARKETING SERVICES
TO  A  PARTICIPATING  ENERGY  SERVICES  COMPANIES FOR COMPENSATION TO BE
AGREED UPON BETWEEN THE PARTIES.
  2. FOR PURPOSES OF CARRYING OUT THE REQUIREMENTS OF THIS SECTION, EACH
COMBINED ELECTRIC AND GAS UTILITY SHALL SUBMIT AN IMPLEMENTATION PLAN TO
THE COMMISSION WITHIN ONE HUNDRED TWENTY DAYS OF A REQUEST BY AN  ENERGY
SERVICES  COMPANY APPROVED BY THE COMMISSION. SUCH PLAN SHALL INCLUDE AN
EXPLANATION OF THE ESTIMATED COSTS FOR  IMPLEMENTATION  OF  THE  ON-BILL
PAYMENT PROGRAM PROVIDED FOR IN THIS SECTION.
  (A)  THE  PARTICIPATING  ENERGY  SERVICES  COMPANY SHALL REIMBURSE THE
COMBINED ELECTRIC AND GAS UTILITY THROUGH A DEDUCTION FROM  ITS  MONTHLY
REMITTANCES  OF THE REASONABLE AND NECESSARY COSTS OF THE IMPLEMENTATION
AND MAINTENANCE  OF  THE  ON-BILL  ENERGY  SERVICES  COMPANY  EFFICIENCY
PAYMENT  PROGRAM  AS  APPROVED  BY THE COMMISSION ON AN ANNUAL BASIS. TO
ENSURE PROPER PROGRAM DESIGN AND IMPLEMENTATION, A COMBINED ELECTRIC AND
GAS UTILITY SHALL DURING THE INITIAL YEAR OF OPERATION LIMIT THE  NUMBER
OF  PARTICIPATING  CUSTOMERS  TO NO MORE THAN THREE PERCENT OF ITS TOTAL
CUSTOMERS ON A FIRST-COME, FIRST-SERVED BASIS. PRIOR  TO  REACHING  SUCH
LIMIT  THE  COMMISSION SHALL REVIEW THE AFORESAID LIMIT, AND THE COMMIS-
SION SHALL INCREASE SUCH LIMIT PROVIDED THAT THE  COMMISSION  FINDS  THE
PROGRAM HAS NOT CAUSED SIGNIFICANT HARM TO THE COMBINED ELECTRIC AND GAS
UTILITY OR ITS CUSTOMERS.

S. 5286--A                          3

  (B) THE COMMISSION MAY SUSPEND OR TERMINATE A UTILITY COMPANY'S OFFER-
ING  OF  THE  ON-BILL  PAYMENT AFTER NOTICE AND HEARING PURSUANT TO THIS
SECTION PROVIDED THAT THE COMMISSION MAKES A FINDING EITHER  THAT  THERE
IS  NOT SUFFICIENT USAGE TO JUSTIFY THE COST, OR A FINDING OF OTHER GOOD
CAUSE.
  (C)  ONE HUNDRED PERCENT OF THE ENERGY EFFICIENT SAVINGS REALIZED FROM
THE IMPLEMENTATION OF QUALIFIED ENERGY EFFICIENCY  SERVICES  IMPLEMENTED
THROUGH  ENERGY  SERVICES  COMPANY ENERGY EFFICIENCY PAYMENT PROGRAMS IN
THE COMBINED ELECTRIC AND GAS UTILITY SERVICE TERRITORIES SHALL BE CRED-
ITED TO THE APPROPRIATE UTILITY'S ENERGY SAVINGS TARGETS ESTABLISHED  BY
THE COMMISSION IN THE ENERGY EFFICIENCY PORTFOLIO STANDARD PROCEEDING.
  3.  SCHEDULES  FOR  BILLING AND REMITTANCE OF ON-BILL RECOVERY CHARGES
SHALL PROVIDE:
  (A) THAT BILLING AND REMITTANCE SERVICES SHALL BE AVAILABLE TO CUSTOM-
ERS THAT HAVE MET  ANY  STANDARDS  ESTABLISHED  BY  THE  COMMISSION  FOR
PARTICIPATION  IN THE ON-BILL RECOVERY PURSUANT TO THIS SECTION AND HAVE
EXECUTED A CONTRACT AS REQUIRED HEREIN; PROVIDED HOWEVER,  FOR  RESIDEN-
TIAL  PROPERTIES ANY SUCH CUSTOMER MUST HOLD PRIMARY OWNERSHIP OR REPRE-
SENT THE PRIMARY OWNER OR OWNERS OF THE PREMISES OR REPRESENT THE PRIMA-
RY HOLDER OR HOLDERS OF METER ACCOUNT RESPONSIBILITY FOR ALL  METERS  TO
WHICH SUCH ON-BILL RECOVERY CHARGES WILL APPLY.
  (B)  THE  RESPONSIBILITIES  OF  THE  COMBINED ELECTRIC AND GAS UTILITY
SHALL BE LIMITED SOLELY TO PROVIDING  BILLING,  PAYMENT  PROCESSING  AND
REMITTANCE SERVICES FOR ON-BILL PAYMENTS.
  (C) UNLESS OTHERWISE PRECLUDED BY LAW OR THE COMMISSION, PARTICIPATION
IN  THIS  PROGRAM  SHALL  NOT  AFFECT THE CUSTOMERS' ELIGIBILITY FOR ANY
REBATE OR OTHER INCENTIVE OFFERED BY A COMBINED ELECTRIC AND GAS  UTILI-
TY.
  (D)  ANY  CHARGES  IN  ARREARS WHICH ARE DUE AND OWING, THE COLLECTION
THEREOF SHALL BE THE SOLE RESPONSIBILITY  OF  THE  PARTICIPATING  ENERGY
SERVICES COMPANY.
  (E)  A  CUSTOMER REMITTING LESS THAN THE TOTAL AMOUNT DUE FOR ELECTRIC
AND/OR GAS SERVICES AND ON-BILL RECOVERY CHARGES  SHALL  HAVE  ANY  SUCH
PARTIAL  PAYMENT  FIRST  APPLIED  AS  PAYMENT  FOR  ELECTRIC  AND/OR GAS
SERVICES AND THE REMAINDER THEREOF  SHALL  BE  APPLIED  TO  THE  ON-BILL
RECOVERY CHARGE.
  (F)  BILLING AND REMITTANCE SERVICES SHALL BE AVAILABLE WITHOUT REGARD
TO WHETHER THE ENERGY DELIVERED BY THE UTILITY IS THE CUSTOMER'S PRIMARY
ENERGY SOURCE.
  (G) THE COMMISSION SHALL NOT APPROVE ANY APPLICATION FOR  THE  CONVER-
SION  TO  SUBMETERING OF ANY MASTER METER THAT IS SUBJECT TO ANY ON-BILL
PAYMENT CHARGES.
  4. FOR PURPOSES OF THIS SECTION THE FOLLOWING TERMS ARE DEFINED AS:
  (A) "QUALIFIED ENERGY EFFICIENCY SERVICES" MEANS THE  INSTALLATION  OR
UPGRADE  OF SYSTEMS, EQUIPMENT, OR TECHNOLOGIES BASED ON RECOMMENDATIONS
FROM A PARTICIPATING ENERGY SERVICES COMPANY OR  AN  ENERGY  AUDIT  THAT
WILL  INCREASE  THE ENERGY EFFICIENCY AND CONSERVATION OF A STRUCTURE OR
REDUCE THE COST OR CONSUMPTION OF ENERGY, INCLUDING BUT NOT LIMITED TO:
  (I) INSTALLATION, REPLACEMENT, OR MODIFICATION OF HEATING  OR  COOLING
SYSTEMS OR MAJOR COMPONENTS OF SUCH SYSTEMS;
  (II) INSTALLATION, REPLACEMENT, OR MODIFICATION OF WATER HEATERS;
  (III) INSTALLATION, REPLACEMENT, OR MODIFICATION OF THERMAL SOLAR HEAT
OR HOT WATER SYSTEMS;
  (IV)  INSTALLATION,  REPLACEMENT,  OR  MODIFICATION OF THERMOSTATS AND
OTHER HEATING OR COOLING SYSTEM CONTROL AND COMMUNICATIONS TECHNOLOGIES;

S. 5286--A                          4

  (V)  INSTALLATION,  REPLACEMENT,  OR  MODIFICATION   OF   TECHNOLOGIES
DESIGNED TO FACILITATE DEMAND RESPONSE OR MORE EFFICIENT USE OF ENERGY;
  (VI)  FUEL  SWITCHING  TO CONVERT AN ELECTRICALLY HEATED BUILDING TO A
MORE EFFICIENT HEATING SOURCE PROVIDED THAT SIGNIFICANT ENERGY COST-SAV-
INGS CAN BE DEMONSTRATED PURSUANT TO STANDARDS APPROVED BY  THE  COMMIS-
SION; OR
  (VII)  INSTALLATION  OF  ENERGY TECHNOLOGIES ELIGIBLE FOR NET METERING
PURSUANT TO SECTION SIXTY-SIX J OF THIS ARTICLE.
  (B) "PARTICIPATING ENERGY SERVICES COMPANY" MEANS AN ENTITY  WHICH  IS
REGISTERED  WITH THE COMMISSION AND APPROVED TO PROVIDE QUALIFIED ENERGY
EFFICIENCY SERVICES AS DEFINED IN THIS SUBDIVISION TO END-USE  CUSTOMERS
USING  THE  TRANSMISSION  AND DISTRIBUTION SYSTEM OF A COMBINED ELECTRIC
AND GAS UTILITY.
  S 2. Section 242 of the real property law is amended by adding  a  new
subdivision 5 to read as follows:
  5.  DISCLOSURE PRIOR TO THE SALE OF REAL PROPERTY TO WHICH THE ON-BILL
ENERGY SERVICES COMPANY  ENERGY  EFFICIENCY  PAYMENT  APPLIES.  (A)  ANY
PERSON,  FIRM, COMPANY, PARTNERSHIP OR CORPORATION OFFERING TO SELL REAL
PROPERTY WHICH IS SUBJECT TO THE ON-BILL ENERGY SERVICES COMPANY  ENERGY
EFFICIENCY PAYMENT PURSUANT TO SECTION SIXTY-SIX-N OF THE PUBLIC SERVICE
LAW  SHALL  PROVIDE  WRITTEN  NOTICE TO THE PROSPECTIVE PURCHASER OR THE
PROSPECTIVE PURCHASER'S AGENT, STATING AS  FOLLOWS:  "THIS  PROPERTY  IS
SUBJECT  TO  THE  ON-BILL  ENERGY  SERVICES  COMPANY  ENERGY  EFFICIENCY
PAYMENT." SUCH NOTICE SHALL STATE THE PAYMENT SCHEDULE AND A DESCRIPTION
OF THE ENERGY EFFICIENCY SERVICES INSTALLED AND SERVICES PROVIDED.  SUCH
NOTICE  SHALL  BE  PROVIDED  BY THE SELLER PRIOR TO ACCEPTING A PURCHASE
OFFER.
  (B) ANY PROSPECTIVE OR ACTUAL PURCHASER WHO HAS SUFFERED A LOSS DUE TO
A VIOLATION OF THIS  SUBDIVISION  IS  ENTITLED  TO  RECOVER  ANY  ACTUAL
DAMAGES  INCURRED  FROM THE PERSON OFFERING TO SELL OR SELLING SAID REAL
PROPERTY.
  S 3. This act shall take effect on the one hundred eightieth day after
it shall have become a law.

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