Establishes the New York state clean energy tech production program

Section 2 of the bill establishes that the commission, in collaboration with the utilities and large industrial customers, shall develop, oversee and issue guidelines that establish rules and principles for the Self-Direct Program which shall include the following elements:

(a) Include a mechanism to recoup paid funds from self-direct customers if it is determined that funds contained in the Energy Savings Account were utilized erroneously or if planned energy efficiency savings did not actually occur.

(b) After seven years make any unused surcharges contained in the Energy Saving Account available for surcharges original purposes

(c) A method to measure and verify all claimed energy objectives, using the same standards for data collection as other existing and future clean energy surcharges.

(d) A requirement that a customer implementing a self-directed energy optimization plan provide every two years, a brief report documenting the measures taken to meet the goals of the self directed program.

Section 3 of the bill would require the commission to provide a report on the Clean Energy Technology Program.

Section 4 is the effective date.

Justification

New York's energy policy increasingly recognizing the value of energy efficiency. The State has dedicated significant amounts of ratepayer collections and other assessments to increasing the adoption of energy efficiency measures.

Large energy users, such as industrial facilities and institutional campuses, have a very significant interest to invest in energy

efficiency. Such investments lower their operating costs and utility bills and stabilize their future rates.

Some of the most cost-effective efficiency programs are those designed for large energy users.{1} The industrial sector saves more energy per program dollar than any other customer class but only a fraction of their industrial energy efficiency potential is addressed through current programs. Often large energy customers, due to their unique needs, do not meet the demands, requirements or parameters for the State-established programs.

This legislation will have significant positive benefits because eligible large customers still contribute funding toward energy efficiency programming but they may then direct those funds toward the design, implementation, and verification of energy-saving projects in their own facilities. This legislation will provide more customer control because traditional program offerings don't often meet their needs or disproportionately benefit other rate classes.

All 50 states implement ratepayer-funded energy programs. Sixteen states currently offer a self-direct provision for large customers. Twelve other states allow some or all large customers to completely opt out of paying for the energy efficiency resource.

Prior legislative history

This is a new bill.

Fiscal implications

The bill would have no impact on the State budget.

Effective date

The bill would be effective immediately. {1} A.Chittum and S.Nowak, Money Well Spent: 2010 Industrial Energy Efficiency Program Spending (Washington, DC:ACEEE,2012).