Bill Text: NY A09841 | 2017-2018 | General Assembly | Introduced
Bill Title: Relates to the state's electric system energy efficiency framework; establishes a program for energy efficient development.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2018-02-14 - referred to corporations, authorities and commissions [A09841 Detail]
Download: New_York-2017-A09841-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 9841 IN ASSEMBLY February 14, 2018 ___________ Introduced by M. of A. CUSICK, FAHY -- read once and referred to the Committee on Corporations, Authorities and Commissions AN ACT to amend the public service law, in relation to the state's elec- tric system energy efficiency framework The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Short title. This act shall be known and may be cited as 2 the "New York Electric Efficiency Jobs Act". 3 § 2. Legislative findings and intent. The legislature hereby finds and 4 determines: 5 1. New York has long held a leadership role among the states in 6 achieving efficiency savings in its electricity sector. Yet, its current 7 electric energy efficiency achievements are inadequate to generate the 8 amount of savings necessary to achieve the state's clean energy and 9 climate goals in as cost-effective a manner as possible, to reduce the 10 cost of energy for the state's energy customers. New York's most recent 11 state energy plan calls for the achievement of several goals by 2030, 12 including a twenty-three percent decrease in energy consumption from 13 buildings, fifty percent renewable energy supply, and forty percent 14 reduction of greenhouse gas emissions from 1990 levels. If New York does 15 not significantly increase the amount of savings it achieves through 16 electric energy efficiency, reaching these goals will be significantly 17 more difficult, if not impossible. As the Public Service Commission has 18 recognized, energy efficiency "is the cheapest and most effective manner 19 to reduce carbon emissions in the energy sector." It also reduces over- 20 all capacity charges and helps avoid the need for costly utility infras- 21 tructure upgrades. In other words, New York's current underinvestment in 22 energy efficiency results in higher utility bills for New Yorkers than 23 is necessary. Public utilities and other market participants have not 24 been given the market signals necessary to aggressively reduce energy 25 usage. 26 2. Energy efficiency investment creates clean energy jobs, as 27 evidenced by the 2017 United States Energy and Employment Report 28 published by the United States Department of Energy, which shows that EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD13281-02-8A. 9841 2 1 New York's energy efficiency market has generated 110,582 energy effi- 2 ciency jobs across the state. The number represents 5.1 percent of all 3 energy efficiency jobs nationwide. Most energy efficiency jobs in New 4 York state are found in energy star and efficient lighting firms, 5 followed by high efficiency heating, ventilation, and air conditioning 6 services. 7 3. Demonstrating leadership with respect to energy efficiency will 8 drive even greater clean energy job growth in the state, helping to 9 reverse recent trends of workforce reductions seen in many of New York's 10 communities, and increase the competitiveness of the state, by not only 11 increasing job opportunities for electricians, engineers and contrac- 12 tors, but also reducing the overall energy costs in the state, bringing 13 down the cost of living and the cost of doing business and generating 14 economic activity across the state. The United States economy has grown 15 significantly since 2007, even while electricity consumption has been 16 flat, in large part attributable to energy efficiency gains. According 17 to Bloomberg New Energy Finance, "the key policy story of the past 18 decade has been the uptake of EERS (Energy Efficiency Resource Stand- 19 ards) in the U.S. state targets," leading to increased investment in 20 efficiency and job growth. 21 4. Cost-effective energy efficiency investment directly results in 22 lower electricity use and lower electricity bills, and also reduces 23 total statewide energy demand, peak demand, and distribution system 24 investment needs. Thus, a well-deployed energy efficiency program will 25 provide worthwhile benefits to both the individual bill payers partic- 26 ipating in it and collectively to all bill payers. 27 5. Under the current system, New York is achieving significantly lower 28 amounts of annual incremental savings through energy efficiency than the 29 amounts being achieved in other states. The American Council for an 30 Energy-Efficient Economy estimates that New York achieved only approxi- 31 mately 1.05 percent annual incremental savings in 2015, as compared to 32 annual incremental savings of 2.91 percent in Rhode Island, 2.74 percent 33 in Massachusetts, 2.01 percent in Vermont, and 1.95 percent in Califor- 34 nia (which recently set a goal of four percent annual incremental 35 savings). The Clean Energy Standard Order issued by the Public Service 36 Commission on August 1, 2016, estimated the amount of new incremental 37 renewable energy required to meet its fifty percent renewable energy 38 supply target by assuming 1.4 percent annual incremental savings through 39 energy efficiency. Should the state continue on its current trajectory 40 and thus fail to achieve the Clean Energy Standard's assumed level of 41 savings, far more renewable energy will be required to meet the state's 42 2030 goal than the amount currently being planned for. In other words, 43 the state is falling behind the trajectory of combined energy efficiency 44 and renewable energy needed to achieve the 50 by '30 target, which may 45 become difficult or impossible to achieve, or significantly more costly, 46 if the state's energy efficiency framework is not adjusted soon. New 47 York has the ability to achieve its laudable State Energy Plan goals, 48 but only if the current energy efficient framework is redesigned to 49 capture more of the state's energy efficiency potential. 50 6. The Public Service Commission has expressed conviction regarding 51 the vital importance of energy efficiency in its "Reforming the Energy 52 Vision" (REV) proceeding and has taken steps to advance energy efficien- 53 cy through the work of the Clean Energy Advisory Council. However, more 54 is needed. REV does not yet have any mechanism to fund energy efficiency 55 procurement or catalyze the private sector to invest significant capital 56 in energy saving measures. Effective and appropriate economic signalsA. 9841 3 1 have not been provided consistently to all the utilities or to other 2 parties to pursue all cost-effective efficiency measures. 3 7. It is imperative that New York provide leadership to the nation on 4 energy efficiency, not only to protect New Yorkers and lower electricity 5 bills, but to respond to the serious threatened rollback of bedrock 6 energy efficiency programs at the federal level, including the Home 7 Energy Assistance Program, the Weatherization Assistance Program, and 8 energy star. This leadership will provide critical assistance to low-in- 9 come customers and providers of affordable housing while also enabling 10 energy management solutions for all types of customers and providing a 11 broad range of benefits to all income levels. 12 8. Accordingly, the overlying intent of this act is to provide a clear 13 regulatory framework for energy efficiency to better serve the constitu- 14 ency of New York state and as a model for other states. This legislation 15 will help invigorate the market for energy investments foreseen by REV, 16 incent significantly greater amounts of private capital to be invested 17 in energy efficiency, thereby supporting job growth, increasing electric 18 grid efficiency, reducing emissions, and lowering customers' bills. 19 § 3. The public service law is amended by adding a new section 66-p to 20 read as follows: 21 § 66-p. New York energy efficiency development program. 1. For 22 purposes of this section "cost-effective" shall mean generating benefits 23 that outweigh cost, including, but not limited to, generating more in 24 electricity cost savings and other benefits than costs over a specified 25 period of time, as determined by the commission. 26 2. Notwithstanding any other provision of law to the contrary, includ- 27 ing, but not limited to, any order, rule or regulation promulgated 28 pursuant to this chapter, the public authorities law, and/or the state 29 administrative procedure act, the commission, in consultation with the 30 New York state energy research and development authority, shall adopt a 31 program within one hundred twenty days of the effective date of this 32 section. The program shall: 33 (a) Establish a robust annual incremental minimum savings mandate for 34 each utility for the years two thousand nineteen to two thousand twen- 35 ty-two that provides for annual incremental increases in energy savings 36 of at least 0.4 percent of total electricity load served by that utility 37 until at least two percent minimum annual savings is achieved; 38 (b) Study, identify, and establish appropriate long-term annual, bien- 39 nial, or triennial incremental targets that achieve all cost-effective 40 electric energy efficiency savings levels for each utility for the years 41 two thousand twenty-three to two thousand thirty, which shall be updated 42 every three years to allow for necessary adjustments in such targets; 43 and 44 (c) Provide a clear and consistent funding framework for electric 45 energy efficiency that applies to all the state's utilities and allows 46 them to: make investments in electric energy efficiency as a system 47 resource; earn incentives for significant savings achievements, as 48 prescribed in the commission's order adopting a ratemaking and utility 49 revenue model policy framework dated May nineteenth, two thousand 50 sixteen; and, catalyze private market investment in electric energy 51 efficiency. The funding framework must allow utilities to recover the 52 costs of meeting the minimum mandates set forth in paragraph (a) of this 53 subdivision. 54 § 4. Severability clause. If any provision of this act is, for any 55 reason, declared unconstitutional or invalid, in whole or in part, by 56 any court of competent jurisdiction, such portion shall be deemed sever-A. 9841 4 1 able, and such unconstitutionality or invalidity shall not affect the 2 validity of the remaining provisions of this act, which remaining 3 provisions shall continue in full force and effect. 4 § 5. This act shall take effect immediately.