S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         4339
                              2015-2016 Regular Sessions
                                 I N  A S S E M B L Y
                                   January 30, 2015
                                      ___________
       Introduced  by M. of A. BRENNAN, ORTIZ -- Multi-Sponsored by -- M. of A.
         COLTON, ENGLEBRIGHT -- read once and  referred  to  the  Committee  on
         Energy
       AN  ACT  to  amend  the public authorities law, in relation to providing
         that the power authority of the state of New York undertake and admin-
         ister energy conservation, cogeneration and load  management  programs
         for public corporation customers
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. Legislative findings and declaration. The legislature here-
    2  by finds and declares that a reduction in electric energy consumption by
    3  the public corporation electric customers of the power authority of  the
    4  state of New York in the metropolitan area of the city of New York would
    5  result  in savings to the public, a reduction in the consumption of fuel
    6  for electric generation and more efficient use of the power  authority's
    7  generation  resources.  The  legislature  also  finds  that reduction in
    8  demand by such customers would help defer the need for additional gener-
    9  ating capacity and that the public interest would be served by  granting
   10  to  the  authority  broad  legislative  authority to implement or expand
   11  conservation programs, such as but not limited to the  authority's  1986
   12  pilot  energy  conservation program, to all such customers. The legisla-
   13  ture therefore declares that the implementation of energy  conservation,
   14  cogeneration and load management programs on behalf of the public corpo-
   15  ration  electric  customers  in the metropolitan area of the city of New
   16  York is a matter of vital state concern, and further declares  that  the
   17  power  authority  of  the state of New York is the appropriate entity to
   18  implement such programs with the cooperation of its customers.
   19    S 2. The public authorities law is amended by  adding  a  new  section
   20  1005-b to read as follows:
   21    S  1005-B.  ENERGY  CONSERVATION,  COGENERATION  AND  LOAD  MANAGEMENT
   22  PROGRAMS;  PUBLIC  CORPORATION  CUSTOMERS.  NOTWITHSTANDING  ANY   OTHER
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD01711-01-5
       A. 4339                             2
    1  PROVISIONS  OF  LAW,  GENERAL OR SPECIAL, TO THE CONTRARY, THE AUTHORITY
    2  SHALL, IN ACCORDANCE WITH THE FOLLOWING PROVISIONS, UNDERTAKE AND ADMIN-
    3  ISTER ENERGY CONSERVATION, COGENERATION AND LOAD MANAGEMENT PROGRAMS FOR
    4  THE  PURPOSE  OF REDUCING THE DEMAND FOR AND/OR CONSUMPTION OF ENERGY IN
    5  THE BUILDINGS AND FACILITIES OF THE PUBLIC CORPORATION CUSTOMERS OF  THE
    6  AUTHORITY IN THE METROPOLITAN AREA OF THE CITY OF NEW YORK.
    7    1.  DEFINITIONS.    AS USED IN THIS SECTION, THE FOLLOWING TERMS SHALL
    8  HAVE THE FOLLOWING MEANINGS:
    9    (A) "CONSERVATION PLAN" MEANS A PROGRAM ESTABLISHED  AND  ADMINISTERED
   10  BY THE AUTHORITY PURSUANT TO THIS SECTION FOR ANY CONSUMER OR CONSUMERS.
   11    (B)  "COGENERATION" MEANS THE SIMULTANEOUS OR SEQUENTIAL PRODUCTION OF
   12  ELECTRICITY AND/OR USEFUL THERMAL ENERGY.
   13    (C) "CONSUMER" MEANS PUBLIC CORPORATION CUSTOMER.
   14    (D) "ENERGY AUDIT" MEANS A WRITTEN REPORT OF AN ON-SITE EVALUATION  OF
   15  A  BUILDING,  FACILITY  OR SYSTEM BY A QUALIFIED CONTRACTOR OR AUTHORITY
   16  PERSONNEL TO DETERMINE WHETHER AND TO WHAT EXTENT THE IMPLEMENTATION  OF
   17  ENERGY   CONSERVATION  MEASURES,  COGENERATION  FACILITIES  AND/OR  LOAD
   18  MANAGEMENT MEASURES OR PRACTICES WOULD REDUCE ELECTRIC DEMAND AND/OR THE
   19  CONSUMPTION OF ENERGY IN SUCH BUILDING, FACILITY, OR SYSTEM.
   20    (E) "FINANCIAL ASSISTANCE" MEANS  THE  PROVISION  OF  A  GRANT,  LOAN,
   21  REBATE  AND/OR  OTHER FINANCIAL INCENTIVE, ASSISTANCE OR ANY COMBINATION
   22  OF SUCH ASSISTANCE OR INCENTIVE TO A CONSUMER FOR THE IMPLEMENTATION  OF
   23  AN  ENERGY  CONSERVATION MEASURE OR MEASURES, COGENERATION FACILITIES, A
   24  LOAD  MANAGEMENT  MEASURE  OR  MEASURES,  OR  THE  TECHNICAL  ASSISTANCE
   25  REQUIRED IN CONNECTION WITH THE SAME.
   26    (F)  "PAYBACK PERIOD" MEANS THAT PERIOD OF TIME WITHIN WHICH THE ESTI-
   27  MATED INITIAL COST  OF  AN  ENERGY  CONSERVATION  MEASURE,  COGENERATION
   28  FACILITY  OR  LOAD  MANAGEMENT  MEASURE  WILL  BE  RECOVERED THROUGH THE
   29  SAVINGS GENERATED BY REDUCED ENERGY  DEMAND  AND/OR  ENERGY  CONSUMPTION
   30  RESULTING FROM INSTALLATION OF SUCH MEASURE.
   31    (G)  "PUBLIC  CORPORATION CUSTOMER" MEANS THE METROPOLITAN TRANSPORTA-
   32  TION AUTHORITY, THE PORT AUTHORITY OF NEW YORK AND NEW JERSEY, THE  CITY
   33  OF NEW YORK, THE STATE OF NEW YORK, AND OTHER PUBLIC CORPORATIONS WITHIN
   34  THE  METROPOLITAN  AREAS  OF THE CITY OF NEW YORK PURCHASING ELECTRICITY
   35  FROM THE AUTHORITY.
   36    (H) "TECHNICAL ASSISTANCE" MEANS  ASSISTANCE  TO  A  CONSUMER  (I)  TO
   37  CONDUCT  ENERGY AUDITS AND/OR SPECIALIZED STUDIES IDENTIFYING AND SPECI-
   38  FYING ENERGY SAVINGS AND RELATED COST SAVINGS  THAT  ARE  LIKELY  TO  BE
   39  REALIZED  AS  A  RESULT OF (A) MODIFICATION OF MAINTENANCE AND OPERATING
   40  PROCEDURES IN A BUILDING, FACILITY OR SYSTEM, OR (B) THE ACQUISITION AND
   41  INSTALLATION OF ONE OR MORE SPECIFIED ENERGY CONSERVATION,  COGENERATION
   42  AND/OR LOAD MANAGEMENT MEASURES IN SUCH BUILDING, FACILITY OR SYSTEM, OR
   43  (C)  BOTH,  (II)  THE PLANNING OR ADMINISTRATION OF SPECIFIC REMODELING,
   44  RENOVATION, REPAIR, REPLACEMENT, OR INSULATION PROJECTS RELATED  TO  THE
   45  INSTALLATION OF ENERGY CONSERVATION, COGENERATION AND/OR LOAD MANAGEMENT
   46  MEASURES  IN  SUCH BUILDING, FACILITY OR SYSTEM, AND (III) THE DRAWINGS,
   47  SPECIFICATIONS AND REFINED COST ESTIMATES OF ENERGY CONSERVATION  AND/OR
   48  LOCAL MANAGEMENT MEASURES RECOMMENDED IN THE AUDIT REPORT.
   49    2. CONSERVATION PLAN. (A) AFTER CONSULTATION AND AGREEMENT WITH PUBLIC
   50  CORPORATION CUSTOMER REPRESENTATIVES   AND THE STATE ENERGY RESEARCH AND
   51  DEVELOPMENT  AUTHORITY,  THE  AUTHORITY  SHALL ADOPT A CONSERVATION PLAN
   52  APPLICABLE, WITH SUCH VARIATIONS AS MAY BE  INDIVIDUALLY  WARRANTED,  TO
   53  ELIGIBLE   PUBLIC   CORPORATION  CUSTOMERS,    IN  ACCORDANCE  WITH  THE
   54  PROVISIONS OF THIS SECTION.
   55    (B) A CONSERVATION PLAN SHALL BE COST-EFFECTIVE, TAKING  INTO  ACCOUNT
   56  THE  ENVIRONMENTAL AND SOCIAL COSTS OF ENERGY USE, AND SHALL PROVIDE FOR
       A. 4339                             3
    1  TECHNICAL ASSISTANCE AND/OR FINANCIAL ASSISTANCE TO THE EXTENT NECESSARY
    2  AND AVAILABLE FOR THE IMPLEMENTATION OF  ENERGY  CONSERVATION  MEASURES,
    3  COGENERATION FACILITIES AND LOAD MANAGEMENT MEASURES.
    4    (C)  UPON  THE  REQUEST  OF AN ELIGIBLE PUBLIC CORPORATION CUSTOMER OR
    5  UTILITY THE AUTHORITY MAY, IN ITS SOLE DISCRETION, GRANT AN EXCEPTION TO
    6  THE ELIGIBLE PUBLIC CORPORATION CUSTOMER FROM ANY OF THE REQUIREMENTS OF
    7  A CONSERVATION PLAN UPON A SHOWING THAT COMPLIANCE  IS  NOT  TECHNICALLY
    8  FEASIBLE OR WOULD RESULT IN SEVERE ECONOMIC HARDSHIP.
    9    (D)  A  CONSERVATION  PLAN  SHALL CONTAIN PROVISIONS SETTING FORTH THE
   10  EFFECTIVE DATE AND TERM OF THE PLAN, THE CLASS OF CONSUMERS ELIGIBLE  TO
   11  PARTICIPATE, THE MAXIMUM ANNUAL EXPENDITURES ASSOCIATED WITH IMPLEMENTA-
   12  TION  OF  THE  PLAN,  THE  PAYBACK  PERIODS FOR THE ENERGY CONSERVATION,
   13  COGENERATION AND/OR LOAD MANAGEMENT MEASURES PROVIDED FOR IN  THE  PLAN,
   14  THE  TYPE  OF  TECHNICAL AND/OR FINANCIAL ASSISTANCE TO BE OFFERED UNDER
   15  THE PLAN, THE FINANCIAL AND/OR OTHER REQUIREMENTS WHICH A CONSUMER  MUST
   16  MEET TO QUALIFY FOR SUCH ASSISTANCE, THE TOTAL AMOUNT OF FUNDS AVAILABLE
   17  FOR  TECHNICAL  AND/OR FINANCIAL ASSISTANCE UNDER THE CONSERVATION PLAN,
   18  AND SUCH OTHER INFORMATION AND CRITERIA AS SHALL BE REQUIRED  TO  IMPLE-
   19  MENT THE PLAN.
   20    (E)  WHERE THE AUTHORITY DEEMS IT APPROPRIATE AND ADVISABLE TO PROVIDE
   21  TECHNICAL ASSISTANCE TO A CONSUMER, THE AUTHORITY SHALL ARRANGE FOR  THE
   22  APPROPRIATE  AUTHORITY  PERSONNEL, OR FOR ONE OR MORE QUALIFIED CONTRAC-
   23  TORS, TO PROVIDE SUCH ASSISTANCE TO THE CONSUMER. ALTERNATIVELY, IF  THE
   24  AUTHORITY  DEEMS IT PREFERABLE, THE AUTHORITY MAY PROVIDE SUCH FINANCIAL
   25  ASSISTANCE TO THE CONSUMER AS MAY  BE  NECESSARY  FOR  THE  CONSUMER  TO
   26  PROCURE,  ON  ITS  OWN,  SUCH  ASSISTANCE FROM A QUALIFIED CONTRACTOR OR
   27  CONTRACTORS APPROVED BY THE AUTHORITY.
   28    (F) THE AUTHORITY SHALL  ESTABLISH  SUCH  GUIDELINES,  PROCEDURES  AND
   29  CRITERIA  AS  IT  SHALL  DEEM  APPROPRIATE  AND ADVISABLE TO IMPLEMENT A
   30  CONSERVATION PLAN IN AN EFFECTIVE AND EFFICIENT MANNER.
   31    3. MAXIMUM PROGRAM EXPENDITURES. THE AUTHORITY  SHALL  SET  LIMITS  ON
   32  ANNUAL PROGRAM EXPENDITURES FOR TECHNICAL AND FINANCIAL ASSISTANCE TO BE
   33  AVAILABLE IN THE CONSERVATION PLAN OR PLANS ESTABLISHED PURSUANT TO THIS
   34  SECTION.
   35    4. PROGRAM COSTS, RECOVERY. THE AUTHORITY IS AUTHORIZED TO RECOVER, AS
   36  AN  ADDITIONAL  COST  OF  SERVICE FROM PUBLIC CORPORATION CUSTOMERS  ALL
   37  COSTS RELATED TO THE ADMINISTRATION  AND  PROMOTION  OF  THE  RESPECTIVE
   38  PROGRAMS  AND  THE  PROVISIONS  TO CUSTOMERS OF TECHNICAL ASSISTANCE AND
   39  FINANCIAL ASSISTANCE INCLUDING THE COSTS TO THE AUTHORITY  OF  ADVANCING
   40  FUNDS PENDING REIMBURSEMENT.
   41    5. RULES AND REGULATIONS. THE AUTHORITY SHALL ISSUE SUCH ORDERS, RULES
   42  AND  REGULATIONS  AS MAY BE NECESSARY OR APPROPRIATE FOR INTERPRETATION,
   43  IMPLEMENTATION OR ADMINISTRATION OF  THIS  SECTION,  INCLUDING  CRITERIA
   44  RELATING  TO  INSTALLATION  OF ENERGY CONSERVATION, COGENERATION OR LOAD
   45  MANAGEMENT MEASURES, AFTER CONSULTATION WITH THE NEW YORK  STATE  ENERGY
   46  RESEARCH  AND  DEVELOPMENT  AUTHORITY, THE PUBLIC SERVICE COMMISSION AND
   47  THE NEW YORK STATE FIRE PREVENTION AND BUILDING CODE COUNCIL.
   48    6. REPORTS. THE AUTHORITY SHALL REPORT IN ITS ANNUAL REPORT  REGARDING
   49  THE  PROGRESS  OF  THE IMPLEMENTATION OF THIS SECTION. SUCH REPORT SHALL
   50  INCLUDE, BUT NOT BE LIMITED TO,  THE  EFFECT  OF  THIS  SECTION  ON  THE
   51  CONSERVATION  OF  ENERGY  BY  CONSUMERS,  THE SPECIFIC TYPES OF PROGRAMS
   52  BEING CONDUCTED FOR SUCH CONSUMERS, THE COST SAVINGS TO SUCH  CONSUMERS,
   53  AND ANY PROBLEMS ENCOUNTERED WITH THE IMPLEMENTATION OF THIS SECTION.
   54    S 3.  This act shall take effect immediately.