Relates to clean energy initiatives of New York power authority

Summary of provisions: Section 1 of the bill would add a new subdivi- sion 16 to PAL § 1005. Paragraph (a) of new subdivision 16 would provide and clarify that: (1) as deemed feasible and advisable by NYPA's trustees, NYPA may finance, design, develop, construct, implement and administer energy-related projects, programs and services for any public entity and customers of NYPA's low-cost power programs; (2) NYPA may consult standards and other criteria established or adopted by other organizations, including but not limited to the United States Green Building Council under its Leadership in Energy and Environmental Design (LEED) programs, the Green Building Initiative's Green Globes Rating System, and the American National Standards Institute; and (3) NYPA may use note and bond proceeds and other authority funds to finance projects and programs.

Paragraph (b) of new subdivision 16 would define terms applicable to this subdivision.

Paragraph (c) of new subdivision 16 would authorize public entities (which include any agency, public authority, public benefit corporation, public corporation, municipal corporation, school district, board of cooperative educational services, SUNY or CUNY four year college, or community college) to enter into energy services contracts with NYPA for energy-related projects, programs and services, provided that NYPA issues and advertises written requests for proposals from third-party providers of goods and services in accordance with its established procurement policies, procedures and guidelines. In addition, this provision provides that NYPA may not contract with a third-party provid- er if such provider is listed on a debarment list maintained and published in accordance with New York law.

Paragraph (d) of new subdivision 16 would: (1) authorize contracts for energy efficiency, clean energy, energy services and green building programs for up to thirty-five years duration, provided that the dura- tion of any such contract does not exceed the expected useful life of the facilities or equipment comprising such projects; (2) require contracts to contain a standard provision that such contracts are deemed executory only to the extent of the monies appropriated and available for the purpose of the contract; and (3) authorize public entities to grant NYPA access to property in order to allow the construction,

installation and operation of facilities and equipment provided as part of the energy projects, programs and services.

In the case of a school district or board of cooperative educational services, paragraph (d) of new subdivision 16 would provide that the regulations promulgated by the Commissioner of Education would continue to apply, except that a school district or board of cooperative educa- tional services may only enter into an energy services contract with NYPA for such maximum term as is prescribed in the regulations promul- gated by the Commissioner of Education, or for the useful life of the facilities or equipment being constructed, installed or operated, which- ever is less.

Paragraph (f) of new subdivision 16 would require NYPA to submit a report on the activities of the program to the Governor, Speaker of the Assembly, Temporary President of the Senate, Minority Leader of the Senate, Minority Leader of the Assembly, the Chair of the Senate Finance Committee, the Chair of the Assembly Ways and Means Committee, the Chair of the Assembly Energy Committee and the Chair of the Senate Energy Committee on or before January 31, 2012.

Section 2 of this bill would provide for an immediate effective date and for the expiration three years after it becomes law.

Existing law: NYPA is currently authorized by various State enactments relating to Petroleum Overcharge Restitution funds, the Clean Water/Clean Air Bond Act of 1996 and other laws to undertake energy efficiency and clean energy projects. PAL § 1005 was amended by Chapter 287 of the Laws of 2004 to authorize NYPA to make energy efficiency services and clean energy technologies available to public and nonpublic elementary and secondary schools throughout the State. Chapter 386 of the Laws of 2004 added a new subdivision 15 to PAL § 1005 authorizing NYPA to provide similar services to certain military installations in New York.

Legislative history: This is a new bill.

Statement in support: This bill would build upon the significant reductions in the consumption of energy and the contributions to a cleaner environment made possible by NYPA's energy efficiency, clean energy, energy service and sustainable building programs, and make it easier for public entities to implement such services and projects.

NYPA has invested more than $1 billion in energy-efficiency projects at publicly owned facilities in New York State since 1987, through direct implementation of projects and low-cost financing. Its energy services programs have resulted in more than 1,560 completed projects at 2,640 facilities, producing more than $102 million in annual taxpayer savings. Since their inception, these programs have reduced energy consumption in the State by over 900 gigawatt hours (GWh) and prevented the emission of approximately 824,987 tons of greenhouse gas emissions.

The expansion of NYPA's energy efficiency programs will also support the State's key energy conservation initiatives, including the State's "45 x 15" plan to meet 45 percent of its electricity needs through improved energy efficiency and renewable sources by the year 2015. NYPA's work with State agencies, departments and authorities also supports the goals of Executive Order No. 111, which requires agencies to reduce energy consumption, while shifting to on-site use of clean energy technologies.

This bill would also provide an efficient process for agencies, munici- palities, public authorities, public universities, public entities, and customers of NYPA's low-cost power programs to avail themselves of NYPA's expertise and financing, and authorize such entities to enter into contractual arrangements directly with NYPA, provided that NYPA issues and advertises a written request for proposals from third party providers of goods and services in accordance with NYPA's own procure- ment policies, procedures or guidelines.

This bill would also assist local governments in implementing energy conservation programs funded through the American Recovery and Reinvest- ment Act of 2009.

This bill would also clarify and confirm the authorization for NYPA's sustainable or high performance building program and activities. "Sustainable" refers to programs that are environmentally responsible and resource-efficient throughout a building's life-cycle. Sustainable building practices can substantially reduce environmental impacts, reduce operating costs, enhance building marketability, and improve indoor air quality for building occupants. Much of NYPA's work in the sustainable building area is associated with its energy efficiency/clean energy work. For example, NYPA replaced its chilled water plant at its offices in White Plains an energy efficiency measure, and implemented other measures that earned the facility LEED (Leadership in Energy and Environmental Design) Existing Building Gold status. The completed project is saving NYPA 4,704,764 kilowatt hours (kWh) per year of elec- tricity, amounting to a savings of $338,951 annually. The new equipment has reduced greenhouse gases by 3,034 tons per year, and mitigates the CFCs that would otherwise be in the refrigerants of the old chilled water plant.

Many of the public entities served by NYPA, such as the City of New York, Office of General Services, and State University of New York, wish to incorporate sustainable building program measures into the energy service work that NYPA provides. This legislation would make it clear that NYPA may provide all aspects of sustainable development services along with the other measures and services NYPA offers to program participants.

Budget implications This bill would result in savings to the General Fund and to public entities because implementation of energy efficiency and green building measures will reduce building operating expenses.

Effective date: This bill takes effect immediately and will expire three years after it becomes law.