EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02457-02-5
S. 641--A 2
(f) While existing energy efficiency programs administered by the New
York state energy research and development authority and some utilities
are available for low- to moderate-income (LMI) customers, there are
some gaps in coverage, including LMI tenants who do not live in build-
ings covered by existing LMI programs, individuals who do not qualify as
LMI customers, rental properties, and where existing programs do not
remove or mitigate up-front financial burdens for customers;
(g) Weatherization efforts can provide significant benefits to disad-
vantaged and other communities through the reduction of energy usage and
decreases in greenhouse gas emissions;
(h) Weatherization and energy efficiency projects can promote strong
economic development and good jobs for local residents, including resi-
dents in disadvantaged communities;
(i) Utilities' access to capital and to a trusted workforce able to
effectively execute projects, and experience with implementing energy
efficiency programs specifically, positions them well to develop and
implement programs to weatherize residential buildings; and
(j) It is therefore the intent of the legislature to remove legal
barriers to utility development of weatherization programs and require
the public service commission to authorize utilities to immediately
commence piloting the development and implementation of targeted utility
weatherization pilot programs to further the goals of the CLCPA.
§ 3. The public service law is amended by adding a new section 66-x to
read as follows:
§ 66-X. NEIGHBORHOOD SCALE WEATHERIZATION AND ELECTRIFICATION READ-
INESS. 1. AS USED IN THIS SECTION:
(A) "BUILDING" MEANS A RESIDENTIAL BUILDING OR THE RESIDENTIAL UNITS
LOCATED WITHIN A NON-RESIDENTIAL BUILDING;
(B) "BUILDING ENVELOPE" MEANS THE ASSEMBLIES, COMPONENTS AND MATERIALS
OF A BUILDING THAT FORM THE THERMAL BARRIER BETWEEN THE INTERIOR SPACE
OF THE BUILDING AND THE EXTERIOR ENVIRONMENT, INCLUDING BUT NOT LIMITED
TO WALLS, FLOORS, ROOFING, FOUNDATION, WINDOWS AND DOORS;
(C) "PRE-WEATHERIZATION WORK" MEANS ANY MEASURES NECESSARY TO PREPARE
THE BUILDING FOR AIR SEALING AND INSULATION INCLUDING WORK THAT
ADDRESSES APPLICABLE CODE AND/OR SAFETY REQUIREMENTS THAT ARISE DURING,
ARE IDENTIFIED AS A RESULT OF, OR THAT WOULD IMPEDE THE SUCCESSFUL
COMPLETION OF THE WEATHERIZATION WORK BEING PERFORMED, AND SHOULD
INCLUDE IDENTIFICATION OF ELECTRIFICATION-READY WORK;
(D) "ELECTRIFICATION-READY WORK" MEANS THAT (I) BRANCH CIRCUITS,
CONDUIT AND/OR RACEWAY, WIRING, JUNCTION BOXES, AND RECEPTACLES FOR
FUTURE ELECTRIC EQUIPMENT OR APPLIANCES ARE PROPERLY LABELED AND
INSTALLED, AS APPLICABLE; (II) PHYSICAL SPACE IS RESERVED FOR FUTURE
ELECTRIC EQUIPMENT OR APPLIANCES; AND (III) ELECTRICAL CAPACITY AND
RESERVED PHYSICAL SPACE FOR CIRCUIT BREAKERS IN THE MAIN ELECTRICAL
SERVICE PANEL ARE PROPERLY LABELED;
(E) "NEIGHBORHOOD SCALE WEATHERIZATION AND ELECTRIFICATION-READY
PROJECT" MEANS A PROJECT IMPLEMENTED BY A GAS CORPORATION, ELECTRIC
CORPORATION OR COMBINATION GAS AND ELECTRIC CORPORATION TO IMPROVE THE
INTEGRITY OF A SERIES OF BUILDING ENVELOPES IN CLOSE GEOGRAPHIC PROXIMI-
TY FOLLOWING OUTREACH TO ALL BUILDINGS WITHIN A TARGETED PILOT AREA,
THAT MAY INCLUDE BUT NOT BE LIMITED TO, LOCATING AND SEALING AIR LEAKS,
INCREASING INSULATION, WEATHERSTRIPPING WINDOWS AND DOORS AND MOISTURE
CONTROL SUCH AS INSTALLING ATTIC VENTS, AND PRE-WEATHERIZATION AND/OR
ELECTRIFICATION-READY WORK;
(I) SUCH PROJECTS SHALL (A) NOT INCLUDE THE PURCHASE AND INSTALLATION
OF APPLIANCES, INCLUDING BUT NOT LIMITED TO, BOILERS AND HOT WATER HEAT-
S. 641--A 3
ERS; (B) LEVERAGE ALL LOCAL, STATE, AND FEDERAL FUNDING AVAILABLE AND
WORK IN COLLABORATION WITH NEW YORK STATE ENERGY RESEARCH AND DEVELOP-
MENT AUTHORITY, THE DIVISION OF HOMES AND COMMUNITY RENEWAL, REGIONAL
ENERGY HUBS, AND OTHER PARTNERS; (C) BE COMPLETED AT NO COST TO THE
INDIVIDUAL BUILDING OWNER; (D) INCLUDE PRE-WEATHERIZATION WORK, TO THE
EXTENT PRACTICABLE AND COST EFFECTIVE. IF SUCH PRE-WEATHERIZATION WORK
IS NOT PRACTICABLE AND COST EFFECTIVE, IT MAY BE COMPLETED AT COST TO
THE INDIVIDUAL BUILDING OWNER IN ADVANCE OF THE NEIGHBORHOOD SCALE
WEATHERIZATION AND ELECTRIFICATION-READY PROJECT; (E) BE IN CLOSE
GEOGRAPHIC PROXIMITY WITH A GOAL OF PERFORMING WORK ON CONTIGUOUS BUILD-
INGS, ON A BLOCK-BY-BLOCK OR NEIGHBORHOOD BASIS. ONCE A TARGETED PILOT
AREA HAS BEEN APPROVED BY THE COMMISSION FOR SUCH PROJECT, NO BUILDINGS
WITHIN THAT AREA SHALL BE BYPASSED FOR SUCH PROJECT WITHOUT JUST CAUSE;
SUCH PROPOSED BUILDING OMISSIONS, AND THE CAUSE FOR THEM, SHALL BE
PRESENTED TO THE COMMISSION, WHO MAY APPROVE OR DISAPPROVE OF SUCH OMIS-
SIONS ON A CASE-BY-CASE BASIS. THE NEED FOR PRE-WEATHERIZATION WORK,
AND/OR WEATHERIZATION WORK SHALL NOT BE ACCEPTED AS JUSTIFICATION FOR
BYPASSING A BUILDING. IF THERE ARE NEARBY BUILDINGS THAT, DUE TO ENVI-
RONMENTAL OR INFRASTRUCTURE-RELATED FACTORS, CAN BE INCORPORATED INTO A
PROJECT IN A REASONABLE, UNBURDENSOME MANNER, THESE BUILDINGS MAY BE
INCLUDED IN SUCH PROJECT'S PROPOSAL, AND THE COMMISSION MAY APPROVE OR
DISAPPROVE OF A NON-CONTIGUOUS BUILDING'S INCLUSION ON A CASE-BY-CASE
BASIS; AND
(II) THE GAS CORPORATION, ELECTRIC CORPORATION OR COMBINATION GAS AND
ELECTRIC CORPORATION SHALL SHARE INFORMATION ABOUT ELECTRIFICATION READ-
INESS WITH THE BUILDING OWNER, WHO MAY THEN CHOOSE WHETHER TO HAVE ELEC-
TRIFICATION-READY WORK COMPLETED AS PART OF THE NEIGHBORHOOD SCALE
WEATHERIZATION AND ELECTRIFICATION PROJECT;
(F) "TARGETED PILOT AREAS" MEANS THE SPECIFIC GEOGRAPHIC REGIONS
SELECTED FOR THE IMPLEMENTATION OF EACH NEIGHBORHOOD SCALE WEATHERIZA-
TION AND ELECTRIFICATION-READY PILOT PROGRAM. TARGETED PILOT AREAS SHALL
BE DETERMINED BY EACH GAS CORPORATION, ELECTRIC CORPORATION OR COMBINA-
TION GAS AND ELECTRIC CORPORATION. THE BOUNDARIES OF TARGETED PILOT
AREAS SHALL BE DRAWN WITH THE GOAL OF PERFORMING WORK ON CONTIGUOUS
PROPERTIES ON A BLOCK-BY-BLOCK OR NEIGHBORHOOD BASIS;
(G) "ENERGY AUDIT" MEANS A REVIEW OF EACH BUILDING WITHIN A SERIES OF
CONTIGUOUS BUILDINGS FOR THE PURPOSE OF BUILDING A WEATHERIZATION AND
ELECTRIFICATION-READY STRATEGY WHICH INCLUDES, BUT IS NOT LIMITED TO,
IDENTIFYING AIR LEAKS, EXAMINING INSULATION, INSPECTING ALL HEATING AND
COOLING SYSTEMS AND DUCTWORK, AND INSPECTING ELECTRICAL WIRING AND IDEN-
TIFYING ELECTRICAL CAPACITY. SUCH AUDIT SHALL BE ALIGNED WITH INDUSTRY
STANDARDS AS IDENTIFIED BY THE DEPARTMENT. DOCUMENTATION OF DENIAL OF
ACCESS TO A BUILDING TO COMPLETE THE REVIEW SHALL QUALIFY AS COMPLETION
FOR PURPOSES OF THIS SECTION;
(H) "PROJECT LABOR AGREEMENT" SHALL MEAN A PRE-HIRE COLLECTIVE
BARGAINING AGREEMENT BETWEEN A GAS CORPORATION, ELECTRIC CORPORATION,
COMBINATION OF GAS AND ELECTRIC CORPORATION OR A THIRD PARTY ON BEHALF
OF SUCH CORPORATION OR CORPORATIONS, AND A BONA FIDE BUILDING AND
CONSTRUCTION TRADE LABOR ORGANIZATION ESTABLISHING THE LABOR ORGANIZA-
TION AS THE COLLECTIVE BARGAINING REPRESENTATIVE FOR ALL PERSONS WHO
WILL PERFORM WORK ON A PUBLIC WORK PROJECT, AND WHICH PROVIDES THAT ONLY
CONTRACTORS AND SUBCONTRACTORS WHO SIGN A PRE-NEGOTIATED AGREEMENT WITH
THE LABOR ORGANIZATION CAN PERFORM PROJECT WORK. ALL CONTRACTORS AND
SUBCONTRACTORS ASSOCIATED WITH THIS WORK SHALL BE REQUIRED TO UTILIZE AN
APPRENTICESHIP AGREEMENT AS DEFINED IN ARTICLE TWENTY-THREE OF THE LABOR
LAW; AND
S. 641--A 4
(I) "COST-EFFECTIVE" MEANS DETERMINING WHETHER THE COSTS OF MATERIALS
AND THEIR INSTALLATION FOR THE ENERGY EFFICIENCY AND ELECTRIFICATION-
READY MEASURES FOR A PROJECT WILL BE RECOVERED THROUGH (I) SAVINGS IN
ENERGY COSTS OVER THE DESIGN LIFE OF THE RELEVANT BUILDINGS; (II)
AVERTED COSTS RELATED TO REDUCED DEMAND ON ENERGY SYSTEMS AND THE ENERGY
GRID INCLUDING THE AVOIDANCE OF COSTS RELATED TO EXPANDING OR MAINTAIN-
ING ENERGY INFRASTRUCTURE; (III) SECONDARY EFFECTS, INCLUDING, BUT NOT
LIMITED TO, REDUCTIONS IN GREENHOUSE GAS EMISSIONS AND OTHER POLLUTANTS;
AND (IV) SOCIETAL BENEFITS, INCLUDING, BUT NOT LIMITED TO, AVERTED
HEALTH COSTS, WORKFORCE DEVELOPMENT, AND THE BENEFITS OF MITIGATING
DISPROPORTIONATE ENVIRONMENTAL BURDENS ON DISADVANTAGED COMMUNITIES.
2. THE COMMISSION SHALL INITIATE A PROCEEDING WITHIN THREE MONTHS OF
THE EFFECTIVE DATE OF THIS SECTION TO SUPPORT THE DEVELOPMENT OF NEIGH-
BORHOOD SCALE WEATHERIZATION AND ELECTRIFICATION-READY PROJECTS FOR THE
PURPOSE OF MEETING THE GREENHOUSE GAS EMISSIONS AND EQUITY GOALS OF THE
CLIMATE LEADERSHIP AND COMMUNITY PROTECTION ACT (CLCPA).
3. WITHIN SIX MONTHS OF THE EFFECTIVE DATE OF THIS SECTION, EACH GAS
CORPORATION, ELECTRIC CORPORATION, OR COMBINATION GAS AND ELECTRIC
CORPORATION SHALL SUBMIT TO THE COMMISSION FOR REVIEW AND APPROVAL AT
LEAST ONE AND UP TO TEN NEIGHBORHOOD SCALE WEATHERIZATION AND ELECTRIFI-
CATION-READY PROJECTS. SUCH PROJECTS MAY BE SUBMITTED JOINTLY BY CORPO-
RATIONS OPERATING IN THE SAME TERRITORY. IF SUCH PROJECTS ARE SUBMITTED
JOINTLY, EACH JOINTLY SUBMITTED PROJECT SHALL BE CONSIDERED ONE HALF OF
A PROJECT FOR EACH CORPORATION FOR PURPOSES OF MEETING SUCH REQUIREMENT
OF SUBMITTING AT LEAST ONE AND UP TO TEN PROJECTS. AT LEAST FORTY
PERCENT OF PROJECTS SHALL BE IN TARGETED PILOT AREAS LOCATED WITHIN
DISADVANTAGED COMMUNITIES AS IDENTIFIED BY THE CLIMATE JUSTICE WORKING
GROUP. EVERY PROPOSED PROJECT SHALL BE DEVELOPED TO REDUCE SYSTEM COSTS
AND AVOID THE POTENTIAL FOR INFRASTRUCTURE INVESTMENTS, SUCH AS BY
REDUCING DEMAND IN CONSTRAINED AREAS, AVOIDING COSTLY WIRE OR PIPELINE
UPGRADES OR REPLACEMENTS, REDUCING PEAK DEMAND, OR OTHER SUCH COST
REDUCTION MEASURES. THE PROJECTS SHALL BE VARIED IN TYPE OF REGION AND
BUILDING TYPOLOGY, TO THE EXTENT POSSIBLE. THE NEIGHBORHOOD SCALE WEATH-
ERIZATION AND ELECTRIFICATION-READY PROJECTS SHALL BE POSTED ON THE
COMMISSION'S WEBSITE AND BE SUBJECT TO A PUBLIC COMMENT PERIOD OF NO
FEWER THAN SIXTY DAYS. ALL PROJECTS SUBMITTED TO THE COMMISSION SHALL
INCLUDE, BUT NOT BE LIMITED TO, THE FOLLOWING: (A) THE BUILDINGS AND
CUSTOMERS ELIGIBLE FOR THE PROPOSED PROJECT, WHICH SHALL INCLUDE A
DESCRIPTION OF HOW THE PROPOSED PROJECT FILLS EXISTING GAPS RELATED TO
LOW- TO MODERATE-INCOME CUSTOMERS AND OTHER CUSTOMERS IN TARGETED PILOT
AREAS; (B) A STAFFING PLAN IDENTIFYING THE WORKFORCE AND SPECIFIC WORK
TO BE PERFORMED; (C) MAPS OF THE LOCATIONS OF THESE PROJECTS, WHICH
SHOULD TARGET CONTIGUOUS PROPERTIES OVER ENTIRE STREET BLOCKS; (D)
PROPOSED TOTAL ANNUAL COSTS OF THE PROJECT; (E) PROJECTED ANNUAL GREEN-
HOUSE GAS EMISSIONS REDUCTIONS RESULTING FROM THE PROPOSED PROJECTS; AND
(F) THE PROJECTED SAVINGS ON INFRASTRUCTURE INVESTMENT FROM THE
REDUCTION IN USAGE. IN DEVELOPING PROJECTS, A GAS CORPORATION, ELECTRIC
CORPORATION, OR COMBINATION ELECTRIC AND GAS CORPORATION SHALL COORDI-
NATE WITH OTHER UTILITY PARTICIPANTS AND THE NEW YORK STATE ENERGY
RESEARCH AND DEVELOPMENT AUTHORITY.
4. WITHIN ONE YEAR OF THE EFFECTIVE DATE OF THIS SECTION, THE COMMIS-
SION SHALL DETERMINE WHETHER IT IS IN THE PUBLIC INTEREST TO APPROVE OR
MODIFY SUCH NEIGHBORHOOD SCALE WEATHERIZATION AND ELECTRIFICATION-READY
PROJECTS AND SHALL ISSUE AN ORDER DIRECTING THE IMPLEMENTATION OF SUCH
PROJECTS. IN DETERMINING WHETHER A PROJECT IS IN THE PUBLIC INTEREST,
THE COMMISSION SHALL CONSIDER WHETHER SUCH PROJECT: (A) FACILITATES
S. 641--A 5
ENERGY RELIABILITY AND REDUCES ENERGY COSTS FOR CUSTOMERS IN TARGETED
PILOT AREAS; (B) SUPPORTS THE STATE'S ACHIEVEMENT OF THE CLIMATE JUSTICE
AND GREENHOUSE GAS EMISSIONS REDUCTION GOALS OF THE CLCPA; AND (C)
PROMOTES JOB TRAINING AND WORKFORCE DEVELOPMENT.
5. THE GAS CORPORATION, ELECTRIC CORPORATION, OR COMBINATION GAS AND
ELECTRIC CORPORATION SHALL COLLECT DATA TO INFORM STRATEGIES FOR THE
NEIGHBORHOOD SCALE WEATHERIZATION AND ELECTRIFICATION-READY PROJECTS.
SUCH DATA SHALL INCLUDE:
(A) FOR EVERY ELIGIBLE BUILDING: (I) IF APPLICABLE, THE NUMBER OF
VACANT UNITS AND REASON FOR VACANCY, IF ASCERTAINABLE; AND (II) WHETHER
AN ENERGY AUDIT WAS AGREED TO.
(B) FOR BUILDINGS THAT HAVE UNDERGONE ENERGY AUDITS: (I) AGE, TYPE,
AND ESTIMATED RETIREMENT DATE OF HEATING SOURCE OR HEATING SYSTEM; (II)
ANY DEFERRED MAINTENANCE, INCLUDING, BUT NOT LIMITED TO: ROOF REPAIRS,
VERMICULITE IN ATTIC, KNOB-AND-TUBE WIRING, MOLD IN ATTIC, WATER IN
BASEMENT, ASBESTOS TAPE IN BASEMENT, AND ASBESTOS SHINGLES; AND (III)
THE RESULTS OF THE ENERGY AUDIT. SUCH DATA SHALL BE ANONYMIZED AND
AGGREGATED BY ZIP CODE AND BE MADE AVAILABLE ON SUCH GAS CORPORATION,
ELECTRIC CORPORATION, OR COMBINATION GAS AND ELECTRIC CORPORATION'S
WEBSITE.
6. THE COMMISSION SHALL AUTHORIZE EACH GAS CORPORATION, ELECTRIC
CORPORATION OR COMBINATION GAS AND ELECTRIC CORPORATION TO FULLY RECOVER
IN THE CONTEXT OF RATE OR OTHER DULY AUTHORIZED PROCEEDINGS THE COSTS
ASSOCIATED WITH EACH SUCH CORPORATION'S NEIGHBORHOOD SCALE WEATHERIZA-
TION AND ELECTRIFICATION-READY PROJECT. EACH CORPORATION MAY ALSO
UTILIZE ADDITIONAL SOURCES OF FUNDING, INCLUDING, BUT NOT LIMITED TO,
FUNDING PROVIDED BY THE STATE. EACH GAS CORPORATION, ELECTRIC CORPO-
RATION OR COMBINATION GAS AND ELECTRIC CORPORATION SHALL DEFER ANY UNRE-
COVERED EXPENSES ASSOCIATED WITH AN APPROVED OR MODIFIED NEIGHBORHOOD
SCALE WEATHERIZATION AND ELECTRIFICATION-READY PROJECT AS A REGULATORY
ASSET PENDING A SUBSEQUENT RATE OR OTHER DULY AUTHORIZED PROCEEDING. ALL
UNRECOVERED EXPENSE BALANCES SHALL ACCRUE CARRYING CHARGES AT SUCH
CORPORATION'S PRE-TAX APPROVED RATE OF RETURN.
7. EACH GAS, ELECTRIC, OR COMBINATION GAS AND ELECTRIC CORPORATION
SHALL REPORT TO THE COMMISSION, ON A QUARTERLY BASIS, AND UNTIL
COMPLETION OF THE NEIGHBORHOOD SCALE WEATHERIZATION AND ELECTRIFICA-
TION-READY PROJECT OR ENHANCED NEIGHBORHOOD SCALE WEATHERIZATION AND
ELECTRIFICATION-READY PROJECTS AS DETERMINED BY THE COMMISSION, THE
STATUS OF EACH PROJECT. THE COMMISSION SHALL POST AND MAKE PUBLICLY
AVAILABLE SUCH REPORTS ON ITS WEBSITE. THE REPORT SHALL INCLUDE, BUT NOT
BE LIMITED TO: (A) PROJECTS COMPLETED; (B) BARRIERS TO IMPLEMENTATION,
IF ANY; (C) COSTS OF THE PROJECTS; (D) NUMBER OF JOBS RETAINED, CREATED
OR ENHANCED BY THE PROJECTS; AND (E) ANY OTHER SUCH INFORMATION THE
COMMISSION DEEMS TO BE IN THE PUBLIC INTEREST.
8. ANY NEIGHBORHOOD SCALE WEATHERIZATION AND ELECTRIFICATION-READY
PROJECTS APPROVED OR MODIFIED UNDER THIS SECTION SHALL REQUIRE THAT
ENERGY AUDITS ARE CONDUCTED BY EMPLOYEES OF THE GAS CORPORATION, ELEC-
TRIC CORPORATION, OR COMBINATION GAS AND ELECTRIC CORPORATION REPRES-
ENTED BY A BONA FIDE LABOR ORGANIZATION OF JURISDICTION THAT IS ACTIVELY
ENGAGED IN REPRESENTING THE GAS CORPORATION, ELECTRIC CORPORATION, AND
COMBINATION GAS AND ELECTRIC CORPORATION EMPLOYEES. THE USE OF CONTRAC-
TORS IS PROHIBITED EXCEPT AS NECESSARY FOR TRAINING OR IMPLEMENTATION OF
THE PROJECTS.
9. EVERY NEIGHBORHOOD SCALE WEATHERIZATION AND ELECTRIFICATION-READY
PROJECT SHALL BE SUBJECT TO A PROJECT LABOR AGREEMENT.
§ 4. This act shall take effect immediately.