Passage Of Power NY Act Caps Major Year For Energy Policy In New York State

Legislature Acted on Power Plant Siting, On Bill Recovery, Power For Jobs, Net Metering and Solar Energy

June 24, 2011

(Albany) Assembly Energy Committee Chair Kevin Cahill (D – Ulster, Dutchess) announced the passage of legislation to reauthorize and improve the Article X power plant siting law, provide for an on-bill recovery program for Green Jobs-Green New York customers, and identify strategies to increase solar energy generation in New York. The bill caps off a year of major progress in energy policy in which the Legislature also overhauled the long stalled Power For Jobs program and passed significant expansions of the state’s net metering laws.

“The Legislature took bold actions this year in terms of encouraging new markets for solar energy, reforming the Power For Jobs program, expanding net metering, providing homeowners and small businesses access to new energy efficiency opportunities and enacting a new power plant siting law,” said Assemblymember Kevin Cahill, Chair of the Assembly Energy Committee. “We have made great strides in changing our energy policies for the better. New York is now a national leader when it comes to energy efficiency, the development and deployment of renewable resources and the creation of a framework from which we can build a new energy economy.”

POWER PLANT SITING (ARTICLE X)

The Power NY bill (A8510), passed this week, will put in place a new power plant siting law for the first time since it expired in 2003. The bill reflects the Assembly’s commitment to protecting host communities and the surrounding environment from the potential harmful effects of new power plants. Under the legislation, any proposals for the siting of facilities that generate at least 25 megawatts - down from the previous 80-megawatt threshold - would require a detailed analysis of potential health and environmental impacts. Additionally, environmental justice concerns will be reviewed by a newly created siting board, which will include representation of local appointees selected by legislative leaders from a pool of candidates submitted by locally elected officials. To ensure further environmental protections, the legislation directs the Department of Environmental Conservation to promulgate standards to regulate power plant emissions, including carbon dioxide, mercury and sulfur dioxide. The bill also significantly enhances community participation through the provision of intervenor funds that can be used to assess the application and provide meaningful contributions to the process.

“New York has gone without power plant siting law for nearly a decade,” said Assemblymember Cahill. “This new, permanent law strikes an appropriate balance between protecting public health and the environment and giving industry the certainty they need to develop new power plants to meet the demands of our recovering economy.”

GREEN JOBS GREEN NEW YORK ON BILL RECOVERY

The bill will also boost the Green Jobs Green New York Program by directing NYSERDA to coordinate with electric and gas utilities to offer energy efficiency loans to homeowners and small businesses to be paid back through their utility bills, a practice commonly known as “on-bill recovery.” Individuals that take advantage of this option can obtain upfront financing to make energy efficiency improvements and use the energy cost savings to pay off the loan through their utility bill.

"On-bill recovery provides the perfect compliment to the energy efficiency financing options already offered through the Green Jobs Green New York Program,” said Assemblymember Cahill. “The upfront costs associated with making buildings more energy efficient often times get in the way of making these common sense investments. This is another tool homeowners and small businesses can utilize to lower their energy costs without increasing their monthly expenses.”

SOLAR ENERGY

The final provision of the Power NY Act directs NYSERDA to conduct a comprehensive analysis of the costs and environmental benefits of achieving the goal of 2,500 megawatts of in-state solar generation by 2020 and 5,000 megawatts by 2025. The study mirrors the targets included in the Solar Industry Development and Jobs Act (A.5713-B), a market-based approach that will accelerate investments in solar power throughout New York. Assemblymember Cahill believes the results of the NYSERDA study will lay the ground work for passage of the bill early next year.

“New York has a huge untapped potential for solar energy, particularly in the hot summer months when electricity demand peaks,” said Assemblymember Cahill. “This innovative program will compliment our already successful efforts at promoting wind, biomass and hydro power. I am confident that NYSERDA will confirm that this is cost effective solution that will allow us to meet our energy needs with clean, renewable power while creating new economic opportunities throughout the state.”

RECHARGE NEW YORK

Earlier in the session, after the commencement of a long series of public hearings, roundtable discussions and negotiations, the legislature acted on legislation to create the Recharge New York Program, a groundbreaking approach designed to help businesses meet their energy needs in the most efficient manner possible. The new permanent program will provide 910 megawatts of low cost economic development power to responsible businesses across the state in return for enforceable commitments for job creation targets, capital investments and energy efficiency improvements.

"High energy costs will no longer stand in the way of businesses investing in New York. We finally have the tools we need to retain the anchors of our communities and attract new ventures," said Assemblymember Cahill. "We heard time and again from industry and economic development leaders that the old approach was not working. The Recharge New York Program will help meet the energy needs of employers while providing New Yorkers with the assurance that their resources are being used efficiently and effectively.”

EXPANSION OF NET METERING

The legislature also passed numerous pieces of legislation amending New York’s net metering laws, which were expanded in 2008 to give non-residential customers the ability to net meter renewable power generating systems of up to two megawatts in size. The most significant (Chapter 35 of the Laws of 2011) lets farm and non-residential customers more efficiently utilize renewable energy resources by allowing the use of remote net-metering when their generating equipment is not immediately adjacent to the location of their electricity use. Bills were also passed (A 7765-A and A28-A) to expand the technologies eligible for net metering to include fuel cell and micro hydroelectric generation.

“Collectively, these bills mark another important step toward making renewable energy systems a cost effective solution for businesses and not-for-profits,” said Assemblymember Cahill. “Net metering is boosting our new energy industry and creating jobs. As a state, we are embracing the many environmental, public health, economic development and energy security benefits of clean on-site generation.”

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