Establishes the New York state clean energy tech production program as a self-directed program for industrial, commercial and large users in order to stimulate the growth and adoption of more efficient use of energy, greater use of advanced energy management products, deeper penetration of renewable energy resources, wider deployment of "distributed" energy resources, and storage.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A10716
SPONSOR: Rules (Woerner)
 
TITLE OF BILL:
An act to amend the public service law, in relation to establishing the
New York state clean energy tech production program
 
PURPOSE OF THE BILL:
The purpose of this bill is to direct the Public Service Commission to
establish a self-direct program for its industrial, commercial, and
large users. This will stimulate the growth and adoption of more ener-
gy-efficient practices, greater use of advanced energy management
products, deeper penetration of renewable energy resources (such as
wind, solar, geothermal, and anaerobic digestion), and wider deployment
of "distributed" energy resources, (such as micro grids, roof-top solar,
fuel cells and other on-site power supplies).
 
SUMMARY OF PROVISIONS:
Section 1 directs the commission to commence a proceeding to establish a
self-direct program for its industrial, commercial and large users.
Section 2 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.
Section 3 requires the commission to provide a report on or before the
first day of January to the Governor, Temporary President of the Senate,
Speaker of the Assembly, and the Minority Leader of the Assembly and the
Senate on the "Clean Energy Tech Production Program."
Section 4 establishes the effective date.
 
JUSTIFICATION:
New York's energy policy is continuing to recognize the value of energy
efficiency. The State has dedicated significant amounts of ratepayer
collections and other assessments to encourage adoption of greater effi-
ciency measures.
Large energy users, such as industrial facilities and institutional
campuses, have a very significant interest to invest in energy efficien-
cy. Such investments lower their operating costs and utility bills, as
well as stabilize their future rates.
Some of the most cost-effective efficiency programs are those designed
for large energy users. 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'. Due to their unique needs, large energy customers are
often unable to meet the demands, requirements, or parameters of the
State-established programs.
This legislation will have significant 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 do not often meet their needs or disproportionately
benefit other rate classes.
All fifty 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:
New Bill.
 
FISCAL IMPLICATIONS:
None.
 
EFFECTIVE DATE:
Immediately.
{1} A.Chittum and S.Nowak, Money Well Spent: 2010 Industrial Energy
Efficiency Program Spending (Washington, DC:ACEEE,2012).