Bill Text: NY S06771 | 2017-2018 | General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relates to the state's electric system energy efficiency framework; establishes a program for energy efficient development.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2018-02-15 - PRINT NUMBER 6771A [S06771 Detail]
Download: New_York-2017-S06771-Introduced.html
Bill Title: Relates to the state's electric system energy efficiency framework; establishes a program for energy efficient development.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2018-02-15 - PRINT NUMBER 6771A [S06771 Detail]
Download: New_York-2017-S06771-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 6771 2017-2018 Regular Sessions IN SENATE June 16, 2017 ___________ Introduced by Sen. CARLUCCI -- read twice and ordered printed, and when printed to be committed to the Committee on Rules 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, reducing 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 23 percent decrease in energy consumption from buildings, 50 13 percent renewable energy supply, and 40 percent reduction of greenhouse 14 gas emissions from 1990 levels. If New York does not significantly 15 increase the amount of savings it achieves through electric energy effi- 16 ciency, reaching these goals will be significantly more difficult, if 17 not impossible. As the Public Service Commission has recognized, energy 18 efficiency "is the cheapest and most effective manner to reduce carbon 19 emissions in the energy sector." It also reduces overall capacity charg- 20 es and helps avoid the need for costly utility infrastructure upgrades. 21 In other words, New York's current underinvestment in energy efficiency 22 results in higher utility bills for New Yorkers than is necessary. 23 Public utilities and other market participants have not been given the 24 market signals necessary to aggressively reduce energy usage. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD13149-01-7S. 6771 2 1 2. Energy efficiency investment creates clean energy jobs, as 2 evidenced by the 2017 U.S. Energy and Employment Report published by the 3 U.S. Department of Energy, which shows that New York's energy efficiency 4 market has generated 110,582 energy efficiency jobs across the state. 5 That number represents 5.1 percent of all energy efficiency jobs nation- 6 wide. Most energy efficiency jobs in New York State are found in ENERGY 7 STAR and efficient lighting firms, followed by high efficiency heating, 8 ventilation, and air conditioning services. 9 3. Demonstrating leadership with respect to energy efficiency will 10 drive even greater clean energy job growth in the state, helping to 11 reverse recent trends of workforce reductions seen in many of New York's 12 communities; and, increase the competitiveness of the state by not only 13 increasing job opportunities for electricians, engineers, and contrac- 14 tors, but also reducing the overall energy costs in the state, bringing 15 down the cost of living and the cost of doing business and generating 16 economic activity across the state. The U.S. economy has grown signif- 17 icantly since 2007, even while electricity consumption has been flat, in 18 large part attributable to energy efficiency gains. According to Bloom- 19 berg New Energy Finance, "the key policy story of the past decade has 20 been the uptake of EERS (Energy Efficiency Resource Standards) in U.S. 21 state targets" leading to increased investment in efficiency and job 22 growth. 23 4. Cost-effective energy efficiency investment directly results in 24 lower electricity use and lower electricity bills, and also reduces 25 total statewide energy demand, peak demand, and distribution system 26 investment needs. Thus, a well-deployed energy efficiency program will 27 provide worthwhile benefits to both the individual bill payers partic- 28 ipating in it and collectively to all bill payers. 29 5. Under the current system, New York is achieving significantly lower 30 amounts of annual incremental savings through energy efficiency than the 31 amounts being achieved in other states. The American Council for an 32 Energy-Efficient Economy estimates that New York achieved only approxi- 33 mately 1.05 percent annual incremental savings in 2015, as compared to 34 annual incremental savings of 2.91 percent in Rhode Island, 2.74 percent 35 in Massachusetts, 2.01 percent in Vermont, and 1.95 percent in Califor- 36 nia (which recently set a goal of 4 percent annual incremental savings). 37 The Clean Energy Standard Order issued by the Public Service Commission 38 on August 1, 2016, estimated the amount of new incremental renewable 39 energy required to meet its 50 percent renewable energy supply target by 40 assuming 1.4 percent annual incremental savings through energy efficien- 41 cy. Should the state continue on its current trajectory and thus fail to 42 achieve the Clean Energy Standard's assumed level of savings, far more 43 renewable energy will be required to meet the state's 2030 goal than the 44 amount currently being planned for. In other words, the state is falling 45 behind the trajectory of combined energy efficiency and renewable energy 46 needed to achieve the 50 by '30 target, which may become difficult or 47 impossible to achieve, or significantly more costly, if the state's 48 energy efficiency framework is not adjusted soon. New York has the abil- 49 ity to achieve its laudable State Energy Plan goals, but only if the 50 current energy efficiency framework is redesigned to capture more of the 51 state's energy efficiency potential. 52 6. The Public Service Commission has expressed conviction regarding 53 the vital importance of energy efficiency in its "Reforming the Energy 54 Vision" (REV) proceeding and has taken steps to advance energy efficien- 55 cy through the work of the Clean Energy Advisory Council. However, more 56 is needed. REV does not yet have any mechanism to fund energy efficiencyS. 6771 3 1 procurement or catalyze the private sector to invest significant capital 2 in energy savings measures. Effective and appropriate economic signals 3 have not been provided consistently to all the utilities or to other 4 parties to pursue all cost-effective efficiency measures. 5 7. It is imperative that New York provide leadership to the nation on 6 energy efficiency, not only to protect New Yorkers and lower electricity 7 bills, but to respond to the serious threatened rollback of bedrock 8 energy efficiency programs at the federal level, including the Home 9 Energy Assistance Program, the Weatherization Assistance Program, and 10 ENERGY STAR. This leadership will provide critical assistance to low-in- 11 come customers and providers of affordable housing while also enabling 12 energy management solutions for all types of customers and providing a 13 broad range of benefits to all income levels. 14 8. Accordingly, the overlying intent of this act is to provide a clear 15 regulatory framework for energy efficiency to better serve the constitu- 16 ency of New York State and as a model for other states. This legislation 17 will help invigorate the market for energy investments foreseen by REV, 18 invest significantly greater amounts of private capital to be invested 19 in energy efficiency, thereby supporting job growth, increasing electric 20 grid efficiency, reducing emissions, and lowering customers' bills. 21 § 3. The public service law is amended by adding a new section 66-o to 22 read as follows: 23 § 66-o. New York energy efficiency development program. 1. Defi- 24 nitions. For the purpose of this section, the term "cost-effective," 25 means generating benefits that outweigh cost, i.e. generating more in 26 electricity cost savings and other benefits than costs over a specified 27 period of time, as determined by the commission; 28 2. Program for energy efficiency development. Notwithstanding any 29 other provision of law to the contrary, including, but not limited to, 30 any order, rule or regulation promulgated pursuant to the public service 31 law, the public authorities law, and/or the state administrative proce- 32 dure act, the commission, in consultation with the New York state energy 33 research and development authority, shall adopt a program within one 34 hundred twenty days of the effective date of this section. The program 35 shall: 36 (a) Establish a robust annual incremental minimum savings mandate for 37 each utility for the years two thousand eighteen -- two thousand twen- 38 ty-one that provides for annual incremental increases in energy savings 39 of at least 0.4 percent of total electricity load served by that utility 40 until at least two percent minimum annual savings is achieved; 41 (b) Study, identify, and establish appropriate long-term annual, bien- 42 nial, or triennial incremental targets that achieve all cost-effective 43 electric energy efficiency savings levels for each utility for the years 44 two thousand twenty-two -- two thousand thirty, which shall be updated 45 every three years to allow for necessary adjustments in such targets; 46 and 47 (c) Provide a clear and consistent funding framework for electric 48 energy efficiency that applies to all the state's utilities and allows 49 them to: make investments in electric energy efficiency as a system 50 resource; earn incentives for significant savings achievements (as was 51 prescribed in the commission's Order Adopting a Ratemaking and Utility 52 Revenue Model Policy Framework issued on May 19, 2016); and, catalyze 53 private market investment in electric energy efficiency. The funding 54 framework must allow utilities to recover the costs of meeting the mini- 55 mum mandates set forth in paragraph (a) of this subdivision.S. 6771 4 1 § 4. If any provision of this act is, for any reason, declared uncon- 2 stitutional or invalid, in whole or in part, by any court of competent 3 jurisdiction, such portion shall be deemed severable, and such unconsti- 4 tutionality or invalidity shall not affect the validity of the remaining 5 provisions of this act, which remaining provisions shall continue in 6 full force and effect. 7 § 5. This act shall take effect immediately.
