S T A T E O F N E W Y O R K
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5605
2011-2012 Regular Sessions
I N A S S E M B L Y
February 24, 2011
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Introduced by M. of A. BRENNAN, ORTIZ, STEVENSON -- Multi-Sponsored by
-- M. of A. COLTON, ENGLEBRIGHT, JACOBS, McENENY, P. RIVERA, 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.
LBD00981-01-1
A. 5605 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. 5605 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.