Senate Bill S10631

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10631
 
                             I N  S E N A T E
 
                               June 1, 2026
                                ___________
 
 Introduced  by Sen. KAVANAGH -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 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
 S. 10631                            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
 S. 10631                            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.