Bill S5286A-2013

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

Relates to the Green jobs-green New York on-bill energy service company energy efficiency payment program to permit financing for energy efficient services through utility company billing.

Details

Actions

  • Jun 17, 2014: referred to energy
  • Jun 17, 2014: DELIVERED TO ASSEMBLY
  • Jun 17, 2014: PASSED SENATE
  • Jun 9, 2014: AMENDED ON THIRD READING (T) 5286A
  • Mar 4, 2014: ADVANCED TO THIRD READING
  • Mar 3, 2014: 2ND REPORT CAL.
  • Feb 27, 2014: 1ST REPORT CAL.185
  • Jan 8, 2014: REFERRED TO ENERGY AND TELECOMMUNICATIONS
  • May 15, 2013: REFERRED TO ENERGY AND TELECOMMUNICATIONS

Calendars

Votes

Memo

BILL NUMBER:S5286A

TITLE OF BILL: An act to amend the public service law and the real property law, in relation to establishing on-bill energy services company energy efficiency payment program

PURPOSE OR GENERAL IDEA OF BILL: To establish an on-bill financing mechanism for Energy Services Corporations (ESCO's) in the State of New York in order to promote efficiency upgrades for residential and small commercial customers that will result in the creation of green jobs and reductions in emissions.

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 electric 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 participating energy services company.

Section 2: Amends the Real Property tax law to require property disclosure 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 environment. In 2011, the Legislature took a further step when it established the on-bill recovery program at NYSERDA. Unfortunately the potential 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 authorized 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.


Text

STATE OF NEW YORK ________________________________________________________________________ 5286--A Cal. No. 185 2013-2014 Regular Sessions IN SENATE May 15, 2013 ___________
Introduced by Sen. MAZIARZ -- read twice and ordered printed, and when printed to be committed to the Committee on Energy and Telecommuni- cations -- recommitted to the Committee on Energy and Telecommuni- cations in accordance with Senate Rule 6, sec. 8 -- reported favorably from said committee, ordered to first and second report, ordered to a third reading, amended and ordered reprinted, retaining its place in the order of third reading AN ACT to amend the public service law and the real property law, in relation to establishing on-bill energy services company energy effi- ciency payment program THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The public service law is amended by adding a new section 66-n to read as follows: S 66-N. ON-BILL ENERGY SERVICES COMPANY ENERGY EFFICIENCY PAYMENT PROGRAM. 1. (A) THE COMMISSION SHALL REQUIRE EACH COMBINED ELECTRIC AND GAS UTILITY TO PROVIDE A PROGRAM FOR THE BILLING AND THE REMITTANCE OF PAYMENTS RECEIVED FOR THE PAYMENT OF CONTRACTUALLY OBLIGATED PAYMENTS OF ITS PARTICIPATING CUSTOMERS FOR ENERGY EFFICIENCY PROGRAMS AS DEFINED HEREIN PROVIDED BY A NEW YORK ENERGY SERVICES COMPANY AND APPROVED BY THE COMMISSION. TO THE MAXIMUM EXTENT PRACTICABLE, COMBINED ELECTRIC AND GAS UTILITIES SHALL UTILIZE EXISTING BILLING PROCESSES ESTABLISHED PURSUANT TO TITLE NINE-A OF ARTICLE EIGHT OF THE PUBLIC AUTHORITIES LAW. (B) THIS PROGRAM SHALL BE AVAILABLE TO CUSTOMERS WHO HAVE A WRITTEN CONTRACT PROVIDING FOR ON-BILL PAYMENT FOR QUALIFIED ENERGY EFFICIENCY SERVICES PROVIDED HOWEVER, THAT SUCH CUSTOMERS MUST BE THE COMBINED ELECTRIC AND GAS UTILITIES' CUSTOMER OF RECORD TO WHICH SUCH ON-BILL PAYMENT CHARGES WILL APPLY. (C) THE COMMISSION SHALL PROMULGATE REGULATIONS TO IMPLEMENT A PROGRAM PURSUANT TO THIS SECTION WHICH SHALL INCLUDE BUT NOT BE LIMITED TO THE FOLLOWING: A REQUIREMENT FOR A CONTRACT BETWEEN THE PARTICIPATING ENERGY
SERVICES COMPANY AND CUSTOMER WHICH INCORPORATES A SPECIFIC AUTHORI- ZATION BY THE CUSTOMER OF THE ON-BILL PAYMENT MECHANISM, A HOLD HARMLESS PROVISION APPLICABLE TO THE COMBINED ELECTRIC AND GAS UTILITY FROM ANY LIABILITY ARISING FROM THE CONTRACT BETWEEN THE ENERGY SERVICES COMPANY AND CUSTOMER, ESTABLISHING PARTICIPATION REQUIREMENTS FOR ENERGY SERVICES COMPANIES, ESTABLISHING A METHOD FOR NOTIFICATION BY THE PARTICIPATING ENERGY SERVICES COMPANY TO THE COMBINED ELECTRIC AND GAS UTILITY AND THE COMMISSION OF THE CUSTOMER AGREEMENT TO PARTICIPATE IN THE PROGRAM AND THE BILLING AMOUNT FOR THE ON-BILL PAYMENT, A SCHEDULE FOR REMITTANCE OF FUNDS RECEIVED FROM ON-BILL PAYMENTS, AND SUCH OTHER REGULATIONS REQUIRED FOR IMPLEMENTATION. (D) A COMBINED ELECTRIC AND GAS UTILITY SHALL NOT BE REQUIRED TO PROVIDE ON-BILL PAYMENT FOR SERVICES THAT ARE NOT QUALIFIED ENERGY EFFI- CIENCY SERVICES. (E) ON-BILL PAYMENT CHARGES BILLED PURSUANT TO THIS SECTION SHALL BE EXCLUDED FROM ANY DETERMINATION OF A UTILITY COMPANY'S GROSS OPERATING REVENUES DERIVED FROM INTRASTATE UTILITY OPERATIONS FOR PURPOSES OF SECTION EIGHTEEN-A OF THIS CHAPTER. (F) WHEN A COMPLAINT IS RECEIVED BY A COMBINED ELECTRIC AND GAS UTILI- TY COMPANY THAT IS RELATED TO WORK PERFORMANCE IN CONNECTION WITH QUALI- FIED ENERGY EFFICIENCY SERVICES BY A PARTICIPATING ENERGY SERVICES COMPANY SUCH UTILITY COMPANY SHALL ONLY BE REQUIRED TO DIRECT THE CUSTOMER TO CONTACT THE ENERGY SERVICES COMPANY AND INFORM THE CUSTOMER TO CONTACT THE COMMISSION IF A RESOLUTION CANNOT BE REACHED WITH THE ENERGY SERVICES COMPANY. SUCH COMPLAINTS SHALL NOT BE DEEMED TO BE COMPLAINTS ABOUT THE UTILITY SERVICE OR ENERGY SERVICE COMPANY'S COMMOD- ITY SERVICE IN ANY OTHER COMMISSION ACTION OR PROCEEDING. (G) THE COMBINED ELECTRIC AND GAS UTILITY SHALL NOT BE LIABLE FOR ANY ACTIONS OR DAMAGES ARISING OUT OF THE CONDUCT, WHETHER NEGLIGENT OR INTENTIONAL, OF A PARTICIPATING ENERGY SERVICES COMPANY AND SUCH COMPANY SHALL INDEMNIFY AND HOLD HARMLESS THE UTILITY AGAINST LIABILITY FOR DAMAGE CONTRIBUTED TO, CAUSED BY, OR RESULTING FROM THE NEGLIGENCE OR OTHER CULPABLE CONDUCT OF THE PARTICIPATING ENERGY SERVICES COMPANY. (H) A COMBINED ELECTRIC AND GAS UTILITY MAY PROVIDE MARKETING SERVICES TO A PARTICIPATING ENERGY SERVICES COMPANIES FOR COMPENSATION TO BE AGREED UPON BETWEEN THE PARTIES. 2. FOR PURPOSES OF CARRYING OUT THE REQUIREMENTS OF THIS SECTION, EACH COMBINED ELECTRIC AND GAS UTILITY SHALL SUBMIT AN IMPLEMENTATION PLAN TO THE COMMISSION WITHIN ONE HUNDRED TWENTY DAYS OF A REQUEST BY AN ENERGY SERVICES COMPANY APPROVED BY THE COMMISSION. SUCH PLAN SHALL INCLUDE AN EXPLANATION OF THE ESTIMATED COSTS FOR IMPLEMENTATION OF THE ON-BILL PAYMENT PROGRAM PROVIDED FOR IN THIS SECTION. (A) THE PARTICIPATING ENERGY SERVICES COMPANY SHALL REIMBURSE THE COMBINED ELECTRIC AND GAS UTILITY THROUGH A DEDUCTION FROM ITS MONTHLY REMITTANCES OF THE REASONABLE AND NECESSARY COSTS OF THE IMPLEMENTATION AND MAINTENANCE OF THE ON-BILL ENERGY SERVICES COMPANY EFFICIENCY PAYMENT PROGRAM AS APPROVED BY THE COMMISSION ON AN ANNUAL BASIS. TO ENSURE PROPER PROGRAM DESIGN AND IMPLEMENTATION, A COMBINED ELECTRIC AND GAS UTILITY SHALL DURING THE INITIAL YEAR OF OPERATION LIMIT THE NUMBER OF PARTICIPATING CUSTOMERS TO NO MORE THAN THREE PERCENT OF ITS TOTAL CUSTOMERS ON A FIRST-COME, FIRST-SERVED BASIS. PRIOR TO REACHING SUCH LIMIT THE COMMISSION SHALL REVIEW THE AFORESAID LIMIT, AND THE COMMIS- SION SHALL INCREASE SUCH LIMIT PROVIDED THAT THE COMMISSION FINDS THE PROGRAM HAS NOT CAUSED SIGNIFICANT HARM TO THE COMBINED ELECTRIC AND GAS UTILITY OR ITS CUSTOMERS.
(B) THE COMMISSION MAY SUSPEND OR TERMINATE A UTILITY COMPANY'S OFFER- ING OF THE ON-BILL PAYMENT AFTER NOTICE AND HEARING PURSUANT TO THIS SECTION PROVIDED THAT THE COMMISSION MAKES A FINDING EITHER THAT THERE IS NOT SUFFICIENT USAGE TO JUSTIFY THE COST, OR A FINDING OF OTHER GOOD CAUSE. (C) ONE HUNDRED PERCENT OF THE ENERGY EFFICIENT SAVINGS REALIZED FROM THE IMPLEMENTATION OF QUALIFIED ENERGY EFFICIENCY SERVICES IMPLEMENTED THROUGH ENERGY SERVICES COMPANY ENERGY EFFICIENCY PAYMENT PROGRAMS IN THE COMBINED ELECTRIC AND GAS UTILITY SERVICE TERRITORIES SHALL BE CRED- ITED TO THE APPROPRIATE UTILITY'S ENERGY SAVINGS TARGETS ESTABLISHED BY THE COMMISSION IN THE ENERGY EFFICIENCY PORTFOLIO STANDARD PROCEEDING. 3. SCHEDULES FOR BILLING AND REMITTANCE OF ON-BILL RECOVERY CHARGES SHALL PROVIDE: (A) THAT BILLING AND REMITTANCE SERVICES SHALL BE AVAILABLE TO CUSTOM- ERS THAT HAVE MET ANY STANDARDS ESTABLISHED BY THE COMMISSION FOR PARTICIPATION IN THE ON-BILL RECOVERY PURSUANT TO THIS SECTION AND HAVE EXECUTED A CONTRACT AS REQUIRED HEREIN; PROVIDED HOWEVER, FOR RESIDEN- TIAL PROPERTIES ANY SUCH CUSTOMER MUST HOLD PRIMARY OWNERSHIP OR REPRE- SENT THE PRIMARY OWNER OR OWNERS OF THE PREMISES OR REPRESENT THE PRIMA- RY HOLDER OR HOLDERS OF METER ACCOUNT RESPONSIBILITY FOR ALL METERS TO WHICH SUCH ON-BILL RECOVERY CHARGES WILL APPLY. (B) THE RESPONSIBILITIES OF THE COMBINED ELECTRIC AND GAS UTILITY SHALL BE LIMITED SOLELY TO PROVIDING BILLING, PAYMENT PROCESSING AND REMITTANCE SERVICES FOR ON-BILL PAYMENTS. (C) UNLESS OTHERWISE PRECLUDED BY LAW OR THE COMMISSION, PARTICIPATION IN THIS PROGRAM SHALL NOT AFFECT THE CUSTOMERS' ELIGIBILITY FOR ANY REBATE OR OTHER INCENTIVE OFFERED BY A COMBINED ELECTRIC AND GAS UTILI- TY. (D) ANY CHARGES IN ARREARS WHICH ARE DUE AND OWING, THE COLLECTION THEREOF SHALL BE THE SOLE RESPONSIBILITY OF THE PARTICIPATING ENERGY SERVICES COMPANY. (E) A CUSTOMER REMITTING LESS THAN THE TOTAL AMOUNT DUE FOR ELECTRIC AND/OR GAS SERVICES AND ON-BILL RECOVERY CHARGES SHALL HAVE ANY SUCH PARTIAL PAYMENT FIRST APPLIED AS PAYMENT FOR ELECTRIC AND/OR GAS SERVICES AND THE REMAINDER THEREOF SHALL BE APPLIED TO THE ON-BILL RECOVERY CHARGE. (F) BILLING AND REMITTANCE SERVICES SHALL BE AVAILABLE WITHOUT REGARD TO WHETHER THE ENERGY DELIVERED BY THE UTILITY IS THE CUSTOMER'S PRIMARY ENERGY SOURCE. (G) THE COMMISSION SHALL NOT APPROVE ANY APPLICATION FOR THE CONVER- SION TO SUBMETERING OF ANY MASTER METER THAT IS SUBJECT TO ANY ON-BILL PAYMENT CHARGES. 4. FOR PURPOSES OF THIS SECTION THE FOLLOWING TERMS ARE DEFINED AS: (A) "QUALIFIED ENERGY EFFICIENCY SERVICES" MEANS THE INSTALLATION OR UPGRADE OF SYSTEMS, EQUIPMENT, OR TECHNOLOGIES BASED ON RECOMMENDATIONS FROM A PARTICIPATING ENERGY SERVICES COMPANY OR AN ENERGY AUDIT THAT WILL INCREASE THE ENERGY EFFICIENCY AND CONSERVATION OF A STRUCTURE OR REDUCE THE COST OR CONSUMPTION OF ENERGY, INCLUDING BUT NOT LIMITED TO: (I) INSTALLATION, REPLACEMENT, OR MODIFICATION OF HEATING OR COOLING SYSTEMS OR MAJOR COMPONENTS OF SUCH SYSTEMS; (II) INSTALLATION, REPLACEMENT, OR MODIFICATION OF WATER HEATERS; (III) INSTALLATION, REPLACEMENT, OR MODIFICATION OF THERMAL SOLAR HEAT OR HOT WATER SYSTEMS; (IV) INSTALLATION, REPLACEMENT, OR MODIFICATION OF THERMOSTATS AND OTHER HEATING OR COOLING SYSTEM CONTROL AND COMMUNICATIONS TECHNOLOGIES;
(V) INSTALLATION, REPLACEMENT, OR MODIFICATION OF TECHNOLOGIES DESIGNED TO FACILITATE DEMAND RESPONSE OR MORE EFFICIENT USE OF ENERGY; (VI) FUEL SWITCHING TO CONVERT AN ELECTRICALLY HEATED BUILDING TO A MORE EFFICIENT HEATING SOURCE PROVIDED THAT SIGNIFICANT ENERGY COST-SAV- INGS CAN BE DEMONSTRATED PURSUANT TO STANDARDS APPROVED BY THE COMMIS- SION; OR (VII) INSTALLATION OF ENERGY TECHNOLOGIES ELIGIBLE FOR NET METERING PURSUANT TO SECTION SIXTY-SIX J OF THIS ARTICLE. (B) "PARTICIPATING ENERGY SERVICES COMPANY" MEANS AN ENTITY WHICH IS REGISTERED WITH THE COMMISSION AND APPROVED TO PROVIDE QUALIFIED ENERGY EFFICIENCY SERVICES AS DEFINED IN THIS SUBDIVISION TO END-USE CUSTOMERS USING THE TRANSMISSION AND DISTRIBUTION SYSTEM OF A COMBINED ELECTRIC AND GAS UTILITY. S 2. Section 242 of the real property law is amended by adding a new subdivision 5 to read as follows: 5. DISCLOSURE PRIOR TO THE SALE OF REAL PROPERTY TO WHICH THE ON-BILL ENERGY SERVICES COMPANY ENERGY EFFICIENCY PAYMENT APPLIES. (A) ANY PERSON, FIRM, COMPANY, PARTNERSHIP OR CORPORATION OFFERING TO SELL REAL PROPERTY WHICH IS SUBJECT TO THE ON-BILL ENERGY SERVICES COMPANY ENERGY EFFICIENCY PAYMENT PURSUANT TO SECTION SIXTY-SIX-N OF THE PUBLIC SERVICE LAW SHALL PROVIDE WRITTEN NOTICE TO THE PROSPECTIVE PURCHASER OR THE PROSPECTIVE PURCHASER'S AGENT, STATING AS FOLLOWS: "THIS PROPERTY IS SUBJECT TO THE ON-BILL ENERGY SERVICES COMPANY ENERGY EFFICIENCY PAYMENT." SUCH NOTICE SHALL STATE THE PAYMENT SCHEDULE AND A DESCRIPTION OF THE ENERGY EFFICIENCY SERVICES INSTALLED AND SERVICES PROVIDED. SUCH NOTICE SHALL BE PROVIDED BY THE SELLER PRIOR TO ACCEPTING A PURCHASE OFFER. (B) ANY PROSPECTIVE OR ACTUAL PURCHASER WHO HAS SUFFERED A LOSS DUE TO A VIOLATION OF THIS SUBDIVISION IS ENTITLED TO RECOVER ANY ACTUAL DAMAGES INCURRED FROM THE PERSON OFFERING TO SELL OR SELLING SAID REAL PROPERTY. S 3. This act shall take effect on the one hundred eightieth day after it shall have become a law.

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