Enacts the solar for schools act which provides grants for eligible school districts to purchase and install solar and geothermal power sources; defines terms; directs the New York state energy and research development authority to establish such grant program; provides for the repeal of such provisions upon the expiration thereof; makes an appropriation therefor.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A2720
SPONSOR: Shrestha TITLE OF BILL:
An act to amend the public authorities law, in relation to enacting the
"solar for schools act"; providing for the repeal of such provisions
upon expiration thereof; and making an appropriation therefor
PURPOSE OR GENERAL IDEA OF BILL:
To appropriate $500 million to NYSERDA to help public schools overcome
hurdles in accessing opportunities in the federal Inflation Reduction
Act by providing upfront complementary funds and technical assistance to
pursue photovoltaic, solar thermal, geothermal, and storage projects.
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 provides the short title for this act, which is the "Solar for
Schools Act."
Section 2 creates § 1885 in the public authorities law and subdivision 1
provides definitions. Subdivision 2 of Section 2 describes the
program's details. Public schools will be eligible to receive up to 50
percent of the project costs upfront from the State in addition to up to
60 percent of the funding from the Inflation Reduction Act's direct pay
provisions. Applications will include facility site assessments
performed by a qualified provider. NYSERDA will provide technical
assistance, publish a quarterly financial risk and savings report, and
create a rubric for awarding projects that includes geographic balance,
whether the applicant is located in a disadvantaged community, asthma
rates, etc. Projects will be deemed public work, must include a project
labor agreement, and require components to be made in substantial part
in the United States.
Section 3 appropriates $500 million to NYSERDA to the program.
Section 4 sets the effective date as July 1, 2025 and the sunset date as
10 years later.
JUSTIFICATION:
The direct pay provisions enshrined in the federal Inflation Reduction
Act (IRA) open a new era of public investment in clean energy, but
public schools struggle to access those funds because they cover only
30-60 percent of the total project cost, and the savings are paid back
over time. The state providing 50 percent of the total cost to schools
upfront who will apply for IRA benefits would leave them responsible for
only up to 20 percent.
As classrooms increasingly experience extreme temperatures and are now
required to have a maximum temperature of 88 degrees, the state also
needs to ensure as many of our schools as possible can unlock the bene-
fits of IRA to invest in clean geothermal projects that replace fossil-
based heating systems and add cooling functionality.
The inability to secure upfront costs and technical know-how should not
be the reasons why schools interested in clean energy are left out from
accessing the opportunities in IRA. National solar capacity quadrupling
at schools in the past ten years shows there is a burgeoning interest
among schools to utilize their spaces toward clean energy, create heal-
thy classrooms, and save money on high energy bills.
PRIOR LEGISLATIVE HISTORY:
This is a new bill.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
This bill allocates $500 million from the general fund for the solar for
schools program.
EFFECTIVE DATE:
This bill is effective immediately.
