S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  1620

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
  printed to be committed to the Committee on  Energy  and  Telecommuni-
  cations

AN  ACT in relation to establishing a plan to promote increased residen-
  tial use of energy efficient modalities

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Plan to promote increased use of energy efficient modali-
ties.  The president of the New York state energy research and  develop-
ment authority and the executive director of the dormitory authority, in
consultation with the chair of the public service commission, the presi-
dents  of  the  power authority of the state of New York and Long Island
power authority and responsible officials of one or more  private  elec-
tric  and  gas  utility  companies  that operate within the state, shall
establish a plan complying with section  two  of  this  act  to  promote
increased residential use of energy efficient modalities among customers
of  public and private electric and gas utilities within the state. Such
plan shall be completed not later than December 1, 2015.  The  completed
plan  shall  be  presented  to  the  boards of the New York state energy
research and development authority and the dormitory authority.  If  the
plan  is not approved by both such boards, the president of the New York
state energy research and development authority and the executive direc-
tor of the dormitory authority shall work with their  respective  boards
to  amend  the  plan so that the boards may approve the amended plan. If
both of the boards shall approve such plan, it shall be presented to the
director of the budget,  and  the  secretaries  of  the  senate  finance
committee  and  the assembly ways and means committee and to the ranking
minority member on each such committee. If the boards shall not  approve
a  plan  by  April  1,  2016, the president of the New York state energy
research and development authority shall so report to  the  director  of

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

                                                           LBD02769-01-3

S. 1620                             2

the budget, the temporary president of the senate and the speaker of the
assembly.
  S 2. Elements of a plan to promote increased residential use of energy
efficient modalities. The plan required to be established by section one
of this act shall contain the following elements:
  1.  An equipment and utilization plan. Such a plan shall favor renewa-
ble sources of energy and shall contain, at  a  minimum,  the  following
elements  separately for electrical energy efficiency, and gas and other
fossil fuel energy efficiency:
  (a) A description of energy efficient modalities to be promoted  under
the  plan,  which  description  may include specific individual items of
equipment, generic descriptions of types  of  equipment,  and  equipment
without descriptions except for quantitative energy use reduction goals.
  (b)  Criteria  by  which determinations can be made as to which energy
consumers may qualify for each of the selected energy efficient  modali-
ties,  individually  or by class. Such criteria shall be based on objec-
tive factors leading to the judgment that  such  consumers  can  benefit
from a specific modality.
  (c)  Criteria  for  establishing  a cost-benefit analysis for items or
types of equipment in various environments.
  2. A marketing plan. Such a plan should provide  overall  guidance  to
all  participants  of  the plan to assure appropriate penetration of the
available markets for each classification of equipment.
  3. A financing plan. Such a  plan  shall  contain  at  a  minimum  the
following elements:
  (a)  A plan for raising funds from private investors to allow residen-
tial consumers to purchase energy efficient modalities  favored  by  the
equipment and utilization plan, which funds can be repaid by the consum-
er in monthly installments in connection with their utility bills.
  (b)  A  plan  for  collection  and remittance of such monthly consumer
installment payments for the payment of bondholders.
  (c) A plan for assuring  repayment  to  bondholders  by  incorporating
strong  incentives to the consumer to make the necessary payments, or by
setting up a fund to cover expected defaults, or both.
  S 3. Pilot program implementation. 1. Not  earlier  than  ninety  days
after the submission of the plan required to be submitted by section one
of  this  act,  the dormitory authority and the New York energy research
and development authority shall begin to activate the  plan  to  promote
increased  residential  use  of  energy  efficient modalities as a pilot
program. The authorities shall enter into an agreement with one or  more
private or public utilities providing electric and/or gas service.  Such
agreement  shall  establish  marketing responsibilities for the approved
energy savings modalities,  require  the  utility  to  add  the  monthly
installment  payments for the acquisition by customers of the utility of
any approved energy efficient modalities and to collect and  remit  such
payments  as required by the agreement for the repayment of bonds issued
by the dormitory authority pursuant to section four  of  this  act.  The
agreement  shall  provide  for  an  appropriate administrative fee to be
withheld by the utility to compensate it for its services.  Such  agree-
ment  shall be limited to purchases of energy saving modalities during a
period not to exceed three years, provided, however, that the  agreement
shall  provide for servicing of accounts by the utility through the life
of the bonds issued by the dormitory authority pursuant to section  four
of this act.
  2.  Not  later  than  two  years  after the inception of the plan, the
dormitory authority and the New York state energy research and  develop-

S. 1620                             3

ment  authority  shall provide to the director of the budget, the secre-
taries of the senate finance  committee  and  assembly  ways  and  means
committee  and the ranking minority member of the senate finance commit-
tee  and  assembly  ways  and  means  committee  a  report detailing the
progress of the program during the first eighteen months of  its  opera-
tion. The authorities shall update the report for each three-month peri-
od following the first eighteen months.
  S 4. Dormitory authority bonds.  The dormitory authority may issue its
bonds and notes up to the maximum amount of five million dollars for the
purpose  of  financing  the  purchase  of energy efficient modalities by
consumers which bonds and notes shall be secured by a pledge of install-
ment payments due from the purchasers of energy efficient modalities and
payable through the cooperating utility.
  S 5. This act shall take effect immediately.