S T A T E   O F   N E W   Y O R K
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                                  3583

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            January 27, 2009
                               ___________

Introduced  by M. of A. BRENNAN, ORTIZ -- Multi-Sponsored by -- M. of A.
  COLTON,  ENGLEBRIGHT,  JACOBS,  McENENY,  SWEENEY  --  read  once  and
  referred to the Committee on Energy

AN  ACT  to  amend  the public authorities law, in relation to providing
  that the power authority of the state of New York undertake and admin-
  ister energy conservation, cogeneration and load  management  programs
  for public corporation customers

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

  Section 1. Legislative findings and declaration. The legislature here-
by finds and declares that a reduction in electric energy consumption by
the public corporation electric customers of the power authority of  the
state of New York in the metropolitan area of the city of New York would
result  in savings to the public, a reduction in the consumption of fuel
for electric generation and more efficient use of the power  authority's
generation  resources.  The  legislature  also  finds  that reduction in
demand by such customers would help defer the need for additional gener-
ating capacity and that the public interest would be served by  granting
to  the  authority  broad  legislative  authority to implement or expand
conservation programs, such as but not limited to the  authority's  1986
pilot  energy  conservation program, to all such customers. The legisla-
ture therefore declares that the implementation of energy  conservation,
cogeneration and load management programs on behalf of the public corpo-
ration  electric  customers  in the metropolitan area of the city of New
York is a matter of vital state concern, and further declares  that  the
power  authority  of  the state of New York is the appropriate entity to
implement such programs with the cooperation of its customers.
  S 2. The public authorities law is amended by  adding  a  new  section
1005-b to read as follows:
  S  1005-B.  ENERGY  CONSERVATION,  COGENERATION  AND  LOAD  MANAGEMENT
PROGRAMS;  PUBLIC  CORPORATION  CUSTOMERS.  NOTWITHSTANDING  ANY   OTHER

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05249-01-9
              

A. 3583                             2

PROVISIONS  OF  LAW,  GENERAL OR SPECIAL, TO THE CONTRARY, THE AUTHORITY
SHALL, IN ACCORDANCE WITH THE FOLLOWING PROVISIONS, UNDERTAKE AND ADMIN-
ISTER ENERGY CONSERVATION, COGENERATION AND LOAD MANAGEMENT PROGRAMS FOR
THE  PURPOSE  OF REDUCING THE DEMAND FOR AND/OR CONSUMPTION OF ENERGY IN
THE BUILDINGS AND FACILITIES OF THE PUBLIC CORPORATION CUSTOMERS OF  THE
AUTHORITY IN THE METROPOLITAN AREA OF THE CITY OF NEW YORK.
  1.  DEFINITIONS.    AS USED IN THIS SECTION, THE FOLLOWING TERMS SHALL
HAVE THE FOLLOWING MEANINGS:
  (A) "CONSERVATION PLAN" MEANS A PROGRAM ESTABLISHED  AND  ADMINISTERED
BY THE AUTHORITY PURSUANT TO THIS SECTION FOR ANY CONSUMER OR CONSUMERS.
  (B)  "COGENERATION" MEANS THE SIMULTANEOUS OR SEQUENTIAL PRODUCTION OF
ELECTRICITY AND/OR USEFUL THERMAL ENERGY.
  (C) "CONSUMER" MEANS PUBLIC CORPORATION CUSTOMER.
  (D) "ENERGY AUDIT" MEANS A WRITTEN REPORT OF AN ON-SITE EVALUATION  OF
A  BUILDING,  FACILITY  OR SYSTEM BY A QUALIFIED CONTRACTOR OR AUTHORITY
PERSONNEL TO DETERMINE WHETHER AND TO WHAT EXTENT THE IMPLEMENTATION  OF
ENERGY   CONSERVATION  MEASURES,  COGENERATION  FACILITIES  AND/OR  LOAD
MANAGEMENT MEASURES OR PRACTICES WOULD REDUCE ELECTRIC DEMAND AND/OR THE
CONSUMPTION OF ENERGY IN SUCH BUILDING, FACILITY, OR SYSTEM.
  (E) "FINANCIAL ASSISTANCE" MEANS  THE  PROVISION  OF  A  GRANT,  LOAN,
REBATE  AND/OR  OTHER FINANCIAL INCENTIVE, ASSISTANCE OR ANY COMBINATION
OF SUCH ASSISTANCE OR INCENTIVE TO A CONSUMER FOR THE IMPLEMENTATION  OF
AN  ENERGY  CONSERVATION MEASURE OR MEASURES, COGENERATION FACILITIES, A
LOAD  MANAGEMENT  MEASURE  OR  MEASURES,  OR  THE  TECHNICAL  ASSISTANCE
REQUIRED IN CONNECTION WITH THE SAME.
  (F)  "PAYBACK PERIOD" MEANS THAT PERIOD OF TIME WITHIN WHICH THE ESTI-
MATED INITIAL COST  OF  AN  ENERGY  CONSERVATION  MEASURE,  COGENERATION
FACILITY  OR  LOAD  MANAGEMENT  MEASURE  WILL  BE  RECOVERED THROUGH THE
SAVINGS GENERATED BY REDUCED ENERGY  DEMAND  AND/OR  ENERGY  CONSUMPTION
RESULTING FROM INSTALLATION OF SUCH MEASURE.
  (G)  "PUBLIC  CORPORATION CUSTOMER" MEANS THE METROPOLITAN TRANSPORTA-
TION AUTHORITY, THE PORT AUTHORITY OF NEW YORK AND NEW JERSEY, THE  CITY
OF NEW YORK, THE STATE OF NEW YORK, AND OTHER PUBLIC CORPORATIONS WITHIN
THE  METROPOLITAN  AREAS  OF THE CITY OF NEW YORK PURCHASING ELECTRICITY
FROM THE AUTHORITY.
  (H) "TECHNICAL ASSISTANCE" MEANS  ASSISTANCE  TO  A  CONSUMER  (I)  TO
CONDUCT  ENERGY AUDITS AND/OR SPECIALIZED STUDIES IDENTIFYING AND SPECI-
FYING ENERGY SAVINGS AND RELATED COST SAVINGS  THAT  ARE  LIKELY  TO  BE
REALIZED  AS  A  RESULT OF (A) MODIFICATION OF MAINTENANCE AND OPERATING
PROCEDURES IN A BUILDING, FACILITY OR SYSTEM, OR (B) THE ACQUISITION AND
INSTALLATION OF ONE OR MORE SPECIFIED ENERGY CONSERVATION,  COGENERATION
AND/OR LOAD MANAGEMENT MEASURES IN SUCH BUILDING, FACILITY OR SYSTEM, OR
(C)  BOTH,  (II)  THE PLANNING OR ADMINISTRATION OF SPECIFIC REMODELING,
RENOVATION, REPAIR, REPLACEMENT, OR INSULATION PROJECTS RELATED  TO  THE
INSTALLATION OF ENERGY CONSERVATION, COGENERATION AND/OR LOAD MANAGEMENT
MEASURES  IN  SUCH BUILDING, FACILITY OR SYSTEM, AND (III) THE DRAWINGS,
SPECIFICATIONS AND REFINED COST ESTIMATES OF ENERGY CONSERVATION  AND/OR
LOCAL MANAGEMENT MEASURES RECOMMENDED IN THE AUDIT REPORT.
  2. CONSERVATION PLAN. (A) AFTER CONSULTATION AND AGREEMENT WITH PUBLIC
CORPORATION CUSTOMER REPRESENTATIVES   AND THE STATE ENERGY RESEARCH AND
DEVELOPMENT  AUTHORITY,  THE  AUTHORITY  SHALL ADOPT A CONSERVATION PLAN
APPLICABLE, WITH SUCH VARIATIONS AS MAY BE  INDIVIDUALLY  WARRANTED,  TO
ELIGIBLE   PUBLIC   CORPORATION  CUSTOMERS,    IN  ACCORDANCE  WITH  THE
PROVISIONS OF THIS SECTION.
  (B) A CONSERVATION PLAN SHALL BE COST-EFFECTIVE, TAKING  INTO  ACCOUNT
THE  ENVIRONMENTAL AND SOCIAL COSTS OF ENERGY USE, AND SHALL PROVIDE FOR

A. 3583                             3

TECHNICAL ASSISTANCE AND/OR FINANCIAL ASSISTANCE TO THE EXTENT NECESSARY
AND AVAILABLE FOR THE IMPLEMENTATION OF  ENERGY  CONSERVATION  MEASURES,
COGENERATION FACILITIES AND LOAD MANAGEMENT MEASURES.
  (C)  UPON  THE  REQUEST  OF AN ELIGIBLE PUBLIC CORPORATION CUSTOMER OR
UTILITY THE AUTHORITY MAY, IN ITS SOLE DISCRETION, GRANT AN EXCEPTION TO
THE ELIGIBLE PUBLIC CORPORATION CUSTOMER FROM ANY OF THE REQUIREMENTS OF
A CONSERVATION PLAN UPON A SHOWING THAT COMPLIANCE  IS  NOT  TECHNICALLY
FEASIBLE OR WOULD RESULT IN SEVERE ECONOMIC HARDSHIP.
  (D)  A  CONSERVATION  PLAN  SHALL CONTAIN PROVISIONS SETTING FORTH THE
EFFECTIVE DATE AND TERM OF THE PLAN, THE CLASS OF CONSUMERS ELIGIBLE  TO
PARTICIPATE, THE MAXIMUM ANNUAL EXPENDITURES ASSOCIATED WITH IMPLEMENTA-
TION  OF  THE  PLAN,  THE  PAYBACK  PERIODS FOR THE ENERGY CONSERVATION,
COGENERATION AND/OR LOAD MANAGEMENT MEASURES PROVIDED FOR IN  THE  PLAN,
THE  TYPE  OF  TECHNICAL AND/OR FINANCIAL ASSISTANCE TO BE OFFERED UNDER
THE PLAN, THE FINANCIAL AND/OR OTHER REQUIREMENTS WHICH A CONSUMER  MUST
MEET TO QUALIFY FOR SUCH ASSISTANCE, THE TOTAL AMOUNT OF FUNDS AVAILABLE
FOR  TECHNICAL  AND/OR FINANCIAL ASSISTANCE UNDER THE CONSERVATION PLAN,
AND SUCH OTHER INFORMATION AND CRITERIA AS SHALL BE REQUIRED  TO  IMPLE-
MENT THE PLAN.
  (E)  WHERE THE AUTHORITY DEEMS IT APPROPRIATE AND ADVISABLE TO PROVIDE
TECHNICAL ASSISTANCE TO A CONSUMER, THE AUTHORITY SHALL ARRANGE FOR  THE
APPROPRIATE  AUTHORITY  PERSONNEL, OR FOR ONE OR MORE QUALIFIED CONTRAC-
TORS, TO PROVIDE SUCH ASSISTANCE TO THE CONSUMER. ALTERNATIVELY, IF  THE
AUTHORITY  DEEMS IT PREFERABLE, THE AUTHORITY MAY PROVIDE SUCH FINANCIAL
ASSISTANCE TO THE CONSUMER AS MAY  BE  NECESSARY  FOR  THE  CONSUMER  TO
PROCURE,  ON  ITS  OWN,  SUCH  ASSISTANCE FROM A QUALIFIED CONTRACTOR OR
CONTRACTORS APPROVED BY THE AUTHORITY.
  (F) THE AUTHORITY SHALL  ESTABLISH  SUCH  GUIDELINES,  PROCEDURES  AND
CRITERIA  AS  IT  SHALL  DEEM  APPROPRIATE  AND ADVISABLE TO IMPLEMENT A
CONSERVATION PLAN IN AN EFFECTIVE AND EFFICIENT MANNER.
  3. MAXIMUM PROGRAM EXPENDITURES. THE AUTHORITY  SHALL  SET  LIMITS  ON
ANNUAL PROGRAM EXPENDITURES FOR TECHNICAL AND FINANCIAL ASSISTANCE TO BE
AVAILABLE IN THE CONSERVATION PLAN OR PLANS ESTABLISHED PURSUANT TO THIS
SECTION.
  4. PROGRAM COSTS, RECOVERY. THE AUTHORITY IS AUTHORIZED TO RECOVER, AS
AN  ADDITIONAL  COST  OF  SERVICE FROM PUBLIC CORPORATION CUSTOMERS  ALL
COSTS RELATED TO THE ADMINISTRATION  AND  PROMOTION  OF  THE  RESPECTIVE
PROGRAMS  AND  THE  PROVISIONS  TO CUSTOMERS OF TECHNICAL ASSISTANCE AND
FINANCIAL ASSISTANCE INCLUDING THE COSTS TO THE AUTHORITY  OF  ADVANCING
FUNDS PENDING REIMBURSEMENT.
  5. RULES AND REGULATIONS. THE AUTHORITY SHALL ISSUE SUCH ORDERS, RULES
AND  REGULATIONS  AS MAY BE NECESSARY OR APPROPRIATE FOR INTERPRETATION,
IMPLEMENTATION OR ADMINISTRATION OF  THIS  SECTION,  INCLUDING  CRITERIA
RELATING  TO  INSTALLATION  OF ENERGY CONSERVATION, COGENERATION OR LOAD
MANAGEMENT MEASURES, AFTER CONSULTATION WITH THE NEW YORK  STATE  ENERGY
RESEARCH  AND  DEVELOPMENT  AUTHORITY, THE PUBLIC SERVICE COMMISSION AND
THE NEW YORK STATE FIRE PREVENTION AND BUILDING CODE COUNCIL.
  6. REPORTS. THE AUTHORITY SHALL REPORT IN ITS ANNUAL REPORT  REGARDING
THE  PROGRESS  OF  THE IMPLEMENTATION OF THIS SECTION. SUCH REPORT SHALL
INCLUDE, BUT NOT BE LIMITED TO,  THE  EFFECT  OF  THIS  SECTION  ON  THE
CONSERVATION  OF  ENERGY  BY  CONSUMERS,  THE SPECIFIC TYPES OF PROGRAMS
BEING CONDUCTED FOR SUCH CONSUMERS, THE COST SAVINGS TO SUCH  CONSUMERS,
AND ANY PROBLEMS ENCOUNTERED WITH THE IMPLEMENTATION OF THIS SECTION.
  S 3.  This act shall take effect immediately.