Relates to the green jobs-green New York on-bill energy service company energy efficiency payment program

Summary of specific provisions

Section 1: Amends the public service law to add a new section 66-n that directs the Public Service Commission to require combined gas and elec- tric utility companies to provide a program to allow ESCO's to utilize on-bill financing pursuant to a written contract and regulations of the commission Requires each combined gas and electric utility company to submit an implementation plan for approval by the commission requires the credits from such program to be applied to each utilities targets pursuant to the energy efficiency portfolio standard and allows for suspension of the program pursuant to a hearing and direction of the commission. Lays out the specific requirements of the program as it relates to bill payments, processing, and handling of accounts in arrears and Defines qualified energy efficiency services and participat- ing energy services company.

Section 2: Amends the Real Property tax law to require property disclo- sure before purchase of any property subject to a loan pursuant to this program.

Section 3: Sets forth the effective date.

Justification

In 2009, the Legislature adopted the landmark "Green Jobs Green New York Act" to spur the development of green collar jobs, increase installation of energy efficiency systems and improve our envi- ronment. In 2011, the Legislature took a further step when it estab- lished the on-bill recovery program at NYSERDA. Unfortunately the poten- tial that was contemplated in those two programs has not been realized since the uptake has not met expectations.

The goal of this bill, like that of the Green Bank that has been author- ized by the Public Service Commission, is to leverage the experience and skills of the private sector to promote efficiency and create green jobs. Energy Service Companies (ESCO's) are in the business of marketing and selling efficiency services, and they are highly motivated to do so, since they are reliant on private sector investment and capital. This bill would create an ESCO on-bill recovery mechanism on a customer's utility bill. This mechanism will make payback simpler for the customer and also demonstrate to the customer that the energy savings effectuated by the efficiency upgrades are allowing for the loan to be paid back,

with the savings, thereby not increasing the customer's monthly utility bill. Once the loan is repaid, the customer will enjoy a lower bill permanently as a result.

This bill does not require any investment of money from NYSERDA or any state agency. The money committed in 2009 and 2011 would remain right where it is now All this bill does is allow an ESCO to sell efficiency products to customers as they do now, while providing the customer with the easiest method to repay the loan on their utility bill The bill also allows the utility companies reasonable recovery of costs from the ESCO for any costs incurred and refers any and all customer complaints to the ESCO for resolution. Unleashing the private sector by allowing an on-bill financing mechanism for ESCO efficiency upgrades will allow New York State to more readily meet its emissions reduction goals and allow the original intent of the 2009 and 2011 statutes to be more readily carried out - without investing a dime of taxpayer money or proceeds from the Regional Greenhouse Gas Initiative carbon auction. This bill represents a win-win for the environment, the economy, and customers.

Prior legislative history

This is a new bill.

Fiscal implications for state and local governments

None.

Effective date

This act shall take effect immediately.