S T A T E O F N E W Y O R K
________________________________________________________________________
11556
I N A S S E M B L Y
June 1, 2026
___________
Introduced by COMMITTEE ON RULES -- (at request of M. of A. Conrad) --
read once and referred to the Committee on Energy
AN ACT in relation to directing the New York state energy and develop-
ment authority to establish pilot programs addressing energy efficien-
cy and weatherization
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. 1. The Legislature hereby finds that energy efficiency
programs are one of the most effective methods of conserving energy and
helping to avoid the need for costly electric plant upgrades.
2. 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 energy 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.
3. Given the wide range of energy efficiency and weatherization
programs and the variety of funding sources, ensuring that energy effi-
ciency and weatherization funds are spent as effectively and efficiently
as possible requires a careful review of existing federal, state and
utility-funded resources and the involvement of municipal governments to
leverage those resources and provide local knowledge.
4. To ensure these resources are used effectively, the legislature
finds it prudent to direct the New York state energy research and devel-
opment authority to coordinate activity between municipalities, the
public service commission and local utilities in the advancement of
large-scale municipal-level energy efficiency residential weatherization
pilot projects.
§ 2. 1. (a) Within six months after the effective date of this act,
the New York State energy research and development authority, hereinaft-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD16037-01-6
A. 11556 2
er NYSERDA, shall 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. Energy efficiency and weatherization shall include, but not
be limited to: application or installation of weatherstripping, caulk-
ing, sealant and other materials around doors, windows, and other areas
of a building for the purpose of insulating or sealing openings in the
building envelope and within the building to mitigate energy loss; ther-
mostat upgrades; roof, chimney, fireplace and roof vent repair, insofar
as such repairs are necessary to mitigate energy loss or resolve ener-
gy-system related health and safety issues; repair and replacement of
storm windows, permanent windows; addition of insulation to exterior
walls or ceilings; and other similar projects identified by NYSERDA as
promoting residential energy efficiency or weatherization.
(b) The goal of the pilot projects shall be to create easily repli-
cated large-scale energy efficiency and weatherization projects that can
be implemented in urban, suburban, and rural parts of the state that
result in savings to utility customers in such areas and help decrease
the local utility's projected capital expenses.
(c) When reviewing municipal responses to the request for proposal,
NYSERDA shall consider: (i) areas of municipalities within disadvantaged
communities as defined in article seventy-five of the environmental
conservation law; (ii) areas of municipalities with electric grid
constraints or a high concentration of leak prone pipes; (iii) areas of
municipalities with high concentrations of older residential buildings,
and residential buildings with poorly insulated building envelopes; and
(iv) the geographic proximity of buildings proposed to be part of the
pilot project.
2. (a) After reviewing the municipal responses, NYSERDA shall identify
three targeted 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.
(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 projects; (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 reha-
bilitation 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 sufficient, request the public
service commission to initiate a proceeding to pay for necessary energy
efficiency and weatherization costs, not otherwise eligible to be paid
for by existing federal or state programs, or programs within the utili-
ty service territories of the selected municipalities.
(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
A. 11556 3
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.
3. The pilot projects shall be subject to the provisions of section
224-d of the labor law.
4. Following completion of the three pilot projects, NYSERDA shall
issue a report to be posted on its website, which shall include an
outline of the pilot projects, the outcomes of such projects, including
projected energy savings, a cost-benefit analysis of whether increasing
the number of residential participants increased beneficial outcomes,
and an evaluation related to implementing municipal-level energy effi-
ciency residential weatherization projects, as well as recommendations
for changes to existing programs, and actions to facilitate future
large-scale energy efficiency projects. Such report shall also detail
what costs of the pilot projects were covered by programs existing prior
to the effective date of this act and what costs were not covered by
such programs; and any other information deemed relevant by NYSERDA.
§ 3. Within one year of the effective date of this act, the public
service commission shall initiate a proceeding to conduct a review of
the utilization, spending levels, and eligible items covered by existing
energy efficiency and weatherization programs available to residential
customers. Such review shall be completed within six months and include
all programs administered by utility corporations, state agencies, and
authorities. In the course of this review, the commission shall evaluate
the efficacy and adoption rates of such programs, the three pilot
programs enacted by NYSERDA pursuant to section one of this act, and
evaluate modifications to such programs to increase adoption rates while
balancing ratepayer costs. Additionally, in the course of this review
such commission shall evaluate the merits of consolidating utility and
state administered energy efficiency and weatherization programs and
whether consolidation would result in increased adoption rates.
§ 4. This act shall take effect immediately.