NY State Senate Bill 2021-S7893

Archive: Last Bill Status - In Senate Committee Energy And Telecommunications Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 18, 2022	referred to energy and telecommunications

2021-S7893 (ACTIVE) - Details

Current Committee:: Senate Energy And Telecommunications
Law Section:: Public Service Law
Laws Affected:: Ren §53 to be §54, add §53, Pub Serv L
Versions Introduced in Other Legislative Sessions:: 2023-2024: S7028
2025-2026: S7588

2021-S7893 (ACTIVE) - Summary

Relates to application requirements for private or government entities that wish to provide electric service converting residential rental buildings from being mass-metered to submetered.

2021-S7893 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S7893

SPONSOR: CLEARE
 
TITLE OF BILL:

An act to amend the public service law, in relation to converting resi-
dential rental buildings from being mass-metered to submetered

 
PURPOSE OR GENERAL IDEA OF BILL:

To provide for a transparent procedure by which a private or government
entity applying for submeter a residential rental building shall make
certain facts of the building known that pertain to its energy efficien-
cy, require minimum improvements to the building for energy efficiency,
and provide for tenant input as the application is considered by the
Public Service Commission.

 
SUMMARY OF SPECIFIC PROVISIONS:

The public service law is amended to:

- Provide that a master-metered residential rental building may be

converted to submetering if a private or government entity providing
electric services files an application with the Public Service Commis-
sion and meets the conditions of this act;

- Requires the applicant to include in the application a procedure for
written notification to tenants of the proposal to submeter within 30
days of the application, the notification shall include: a summary of
the information provided to the commission, inform the tenants that a
public comment period has commenced, and indicate the length of that
comment period; the address and telephone number of the nearest Commis-
sion office; the date, time, and location of a public hearing set by the
Commission to hear testimony from the public; where on the Commission
website the entire application can be viewed and how a free copy can be
requested by mail as well as providing a toll free number for making
such requests; a statement stating any economic advantages of submeter-
ing at the premises; a description of the submetering service that will
be installed; the method of calculating utility rates for tenants,
including information about the utility's tariffed residential rate for
directly metered service; describe compliant procedures and tenant
protections consistent with the Home Energy Fair Practice Act; demon-
strate that arrangements have been made with the local social services
department to continue to provide electric service upon acceptance of
utility assistance grants.

- Requires the Commission hold a public hearing near the residential
building at least 30 days prior to the conditional and final approval or
denial of the submetering application;

- Requires the applicant to provide to include in their application to
the Commission: findings of a study commissioned by the applicant of the
thermal characteristics of the building; records of the last twenty-four
months of electrical usage and charges; the projected submetered rates
that the current usage rate for the various dwelling types that exist in
the building; a plan to replace all non-energy star rated appliances
provided by the applicant to energy-star rated appliances;


- The applicant shall pay all the costs of an independent energy
consultant chosen by the tenants if a group of at least 50% of the
tenants request such analysis and at least 3 bids are received by the
applicant;

 
JUSTIFICATION:

In 1951, the Public Service Commission prohibited all residential elec-
tric sub-metering, calling the practice "parasitic." That decision was
held up in courts (Campo Corp. v. Feinberg, 279 App.  Div. 302 (3d Dept.
1952) affirmed 303 N.Y.995 (1952). As a consequence, utilities were
directed by the PSC to adopt electric tariffs broadly prohibiting the
resale of utility service. The previously permitted landlord sub-meter-
ing was converted to direct utility metering.

Subsequently, the practice of sub-metering was again allowed by the PSC
on a case by case basis, mainly for residential cooperative and condo-
minium projects, where tenants have an ownership and governance inter-
est. Public service commission regulations and numerous orders have
allowed landlords waivers from the general prohibition against resale of
utility service contained in commission regulations and utility tariffs.
As a result, landlords are being allowed to be monopoly providers of
electric service to their captive tenants.  Also, in many instances the
state division of housing and community renewal has allowed landlords
who previously rented with utility service included in the rent to
change the terms of leases so as to shift responsibility for payment of
electric charges from landlords to tenants.

To safeguard the rights of tenants, it is important to ensure that the
submetering application process is transparent and affords affected
residents the opportunity to comment on the application as well as
ensuring that the thermal characteristics of the building are known,
deficiencies in energy efficiency are reasonably mitigated, and that
there are checks in place to safeguard against tenants being unduly
burdened from unjust and unreasonable submetered charges.

 
FISCAL IMPLICATIONS:

To be determined

 
EFFECTIVE DATE:
Immediately

2021-S7893 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7893
 
                             I N  S E N A T E
 
                             January 18, 2022
                                ___________
 
 Introduced  by  Sen.  CLEARE -- read twice and ordered printed, and when
   printed to be committed to the Committee on  Energy  and  Telecommuni-
   cations
 
 AN  ACT to amend the public service law, in relation to converting resi-
   dential rental buildings from being mass-metered to submetered
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Section 53 of the public service law is renumbered section
 54 and a new section 53 is added to read as follows:
   § 53. RESIDENTIAL RENTAL BUILDING  SUBMETERING.  1.  A  MASTER-METERED
 RESIDENTIAL  RENTAL  BUILDING  MAY  BE CONVERTED TO BE SUBMETERED IF THE
 OWNER OF THE BUILDING FILES AN APPLICATION TO CONVERT  THE  BUILDING  TO
 SUBMETERING WITH THE COMMISSION, PROVIDED THAT:
   (A)  THE  APPLICANT  APPLYING  TO  PROVIDE SUBMETERED ELECTRIC SERVICE
 INCLUDES WITH THE APPLICATION A  PROCEDURE  FOR  NOTIFYING  IN  WRITING,
 WITHIN  THIRTY  DAYS  OF FILING THE APPLICATION WITH THE COMMISSION, ALL
 TENANTS OF RECORD OF THE PROPOSAL TO SUBMETER. THE NOTIFICATION SHALL:
   (I) INCLUDE A SUMMARY OF THE INFORMATION PROVIDED TO THE COMMISSION;
   (II) INFORM TENANTS THAT A PUBLIC COMMENT PERIOD HAS COMMENCED;
   (III) STATE THE DATE AFTER WHICH COMMENTS DIRECTED TO  THE  COMMISSION
 WILL NO LONGER BE ACCEPTED;
   (IV) PROMINENTLY DISPLAY THE ADDRESS AND TELEPHONE NUMBER OF THE NEAR-
 EST PUBLIC SERVICE COMMISSION OFFICE;
   (V)  STATE  THE  DATE, TIME, AND LOCATION OF THE PUBLIC HEARING SET BY
 THE COMMISSION TO HEAR TESTIMONY FROM THE PUBLIC;
   (VI) DIRECT THE  TENANT  WHERE  ON  THE  PUBLIC  SERVICE  COMMISSION'S
 WEBSITE  THE  ENTIRE  APPLICATION CAN BE VIEWED, AS WELL AS TO PROVIDE A
 TOLL-FREE TELEPHONE NUMBER AND ADDRESS FROM WHICH A TENANT OF RECORD MAY
 REQUEST A COPY OF THE COMPLETE APPLICATION TO BE MAILED TO  SUCH  TENANT
 AT NO COST TO THE TENANT;
   (VII)  INCLUDE  A  STATEMENT SUBSTANTIATING ANY ECONOMIC ADVANTAGES OF
 SUBMETERING OVER DIRECT UTILITY METERING AT THE PREMISES PROPOSED TO  BE
 SUBMETERED;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03028-01-1

 S. 7893                             2
 
   (VIII)  INCLUDE  A DESCRIPTION OF THE TYPE OF SUBMETERING SYSTEM TO BE
 INSTALLED AND A VALIDATION OF ITS RELIABILITY AND ACCURACY;
   (IX)  STATE  THE  METHOD  AND  BASIS FOR CALCULATING RATES TO TENANTS,
 WHICH SHALL INCLUDE A  MAXIMUM  RATE  PROVISION  PREVENTING  CHARGES  TO
 TENANTS  FROM  EXCEEDING THE TARIFFED RATES AND CHARGES FOR SERVICE FROM
 THE LOCAL DISTRIBUTION UTILITY;
   (X) STATE COMPLAINT PROCEDURES AND TENANT PROTECTIONS CONSISTENT  WITH
 THE HOME ENERGY FAIR PRACTICES ACT; AND
   (XI)  DEMONSTRATE  THAT  SATISFACTORY ARRANGEMENTS HAVE BEEN MADE WITH
 THE LOCAL DEPARTMENT OF SOCIAL SERVICES TO  PROVIDE  CONTINUED  ELECTRIC
 SERVICE  UPON  ACCEPTANCE OF VENDOR PAYMENT OF UTILITY ASSISTANCE GRANTS
 IN ACCORDANCE WITH THE STATE PLAN FOR REGULAR AND EMERGENCY HOME  ENERGY
 ASSISTANCE  UNDER  SECTION  NINETY-SEVEN OF THE SOCIAL SERVICES LAW, THE
 EMERGENCY UTILITY ASSISTANCE PROGRAM UNDER SECTION ONE  HUNDRED  THIRTY-
 ONE-S  OF  THE  SOCIAL  SERVICES  LAW,  AND  IN  ACCORDANCE  WITH  OTHER
 PROVISIONS OF THE SOCIAL SERVICES LAW OR REGULATIONS OF  THE  OFFICE  OF
 TEMPORARY  AND  DISABILITY  ASSISTANCE  RELATING  TO  UTILITY ASSISTANCE
 PAYMENTS.
   (B) THE COMMISSION HOLDS A PUBLIC HEARING AT A LOCATION NEAR THE RESI-
 DENTIAL RENTAL BUILDING AT LEAST THIRTY DAYS PRIOR  TO  THE  CONDITIONAL
 AND FINAL APPROVAL OR DENIAL OF THE SUBMETERING APPLICATION.
   (C) THE APPLICANT INCLUDES WITH THE APPLICATION:
   (I)  FINDINGS  OF A STUDY COMMISSIONED BY THE APPLICANT OF THE THERMAL
 CHARACTERISTICS OF THE BUILDING;
   (II) RECORDS OF THE LAST TWENTY-FOUR MONTHS OF  ELECTRICAL  USAGE  AND
 CHARGES;
   (III) THE PROJECTED SUBMETERED RATES AT THE CURRENT USAGE RATE FOR THE
 VARIOUS DWELLING UNIT TYPES THAT EXIST IN THE BUILDING;
   (IV)  A  PLAN TO REPLACE ALL NON-ENERGY STAR RATED APPLIANCES PROVIDED
 BY THE APPLICANT TO THE TENANTS WITH ENERGY STAR RATED APPLIANCES.
   (D) THE APPLICANT PAYS ALL COSTS OF AN INDEPENDENT ENERGY ANALYSIS  OF
 THE  BUILDING BY ONE OF THE CONSULTANTS CHOSEN BY THE TENANTS IF A GROUP
 OF AT LEAST FIFTY PERCENT OF THE TENANTS OF RECORD REQUEST SUCH ANALYSIS
 AND THE GROUP OF TENANTS PROVIDES TO THE APPLICANT AT LEAST  THREE  BIDS
 FROM CONSULTANTS WHO CAN PERFORM SUCH ANALYSIS.
   2.  (A)  ALL  APPLICATIONS  FILED  PURSUANT  TO THE PROVISIONS OF THIS
 SECTION SHALL BE SUBJECT TO A TWO-TIERED APPROVAL PROCESS BY THE COMMIS-
 SION. INITIAL APPROVAL OF AN APPLICATION, IF GRANTED BY THE  COMMISSION,
 SHALL  BE  GRANTED FOR A PERIOD OF ONE YEAR, AT WHICH TIME, THE APPROVAL
 SHALL AUTOMATICALLY EXPIRE; PROVIDED THAT, WITHIN THREE MONTHS PRIOR  OR
 SUBSEQUENT  TO  THE EXPIRATION OF THE GRANT OF CONDITIONAL APPROVAL, THE
 APPLICANT MAY FILE FOR REVIEW OF THE  APPLICATION  FOR  THE  PURPOSE  OF
 OBTAINING  FINAL  APPROVAL  OF THE APPLICATION. ANY APPLICANT FILING FOR
 REVIEW FOR FINAL APPROVAL OF AN APPLICATION SHALL SUBMIT TO THE  COMMIS-
 SION  A  LISTING  OF  THE  ACTUAL METERED USAGE RATES AND CHARGES TO THE
 TENANTS DURING THE PERIOD OF THE CONDITIONAL APPROVAL  OF  THE  APPLICA-
 TION.
   (B) ANY APPLICANT WHOSE APPLICATION FOR CONDITIONAL APPROVAL IS DENIED
 BY  THE COMMISSION MAY RE-FILE AN APPLICATION NO EARLIER THAN SIX MONTHS
 FOLLOWING THE DENIAL OF THE APPLICATION BY THE COMMISSION.
   (C) THE COMMISSION SHALL PROVIDE WRITTEN NOTICE TO AN APPLICANT OF ITS
 DECISION REGARDING APPLICATIONS WITHIN THIRTY DAYS OF THE PUBLIC HEARING
 REQUIRED BY SUBDIVISION ONE OF THIS SECTION. ALL DENIALS OF APPLICATIONS
 SHALL STATE THE REASONS FOR THE DENIAL, SHALL SPECIFY THE  MEASURES  THE
 APPLICANT MUST TAKE TO QUALIFY FOR APPROVAL OF THE APPLICATION AND SHALL
 ADVISE  THE APPLICANT OF HIS OR HER RIGHT TO INVESTIGATION AND REVIEW OF
 S. 7893                             3
 
 THE DENIAL OF THE APPLICATION IF THE APPLICANT CONSIDERS SUCH DENIAL  TO
 BE WITHOUT JUSTIFICATION.
   §  2.  The  public  service  commission shall promulgate any rules and
 regulations necessary for the implementation of this act on  its  effec-
 tive date.
   § 3. This act shall take effect immediately.

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Senate Bill S7893

Sponsored By

Archive: Last Bill Status - In Senate Committee Energy And Telecommunications Committee

Actions

2021-S7893 (ACTIVE) - Details

2021-S7893 (ACTIVE) - Summary

2021-S7893 (ACTIVE) - Sponsor Memo

2021-S7893 (ACTIVE) - Bill Text download pdf

Comments

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Sponsored By

Cordell Cleare

Archive: Last Bill Status - In Senate Committee Energy And Telecommunications Committee

Actions

2021-S7893 (ACTIVE) - Details

2021-S7893 (ACTIVE) - Summary

2021-S7893 (ACTIVE) - Sponsor Memo

2021-S7893 (ACTIVE) - Bill Text download pdf

Comments