Plugged In To Energy & Telecom
Coverage of Energy and Telecommunication News & Policy Across New York State
March 22, 2023
What’s Inside
- Assembly and Senate Release One House Budget Proposals
- Public Service Commission Meeting Review
- NYSERDA Announces Agreements on Two Municipally Owned Sites for Renewable Energy Development
- Building Decarbonization Coalition Releases Report on the Future of Gas in New York State
- Legislative Update
- Regulatory Update
- In The News
Assembly and Senate Release One House Budget Proposals
The Senate and Assembly released their own budget proposals this week, taking positions on the Governor’s proposal and highlighting their own priorities. Over the course of the next two weeks, the three sides will negotiate toward a final budget deal, with an April 1st deadline as the target. Both houses are proposing to spend significantly more than the Governor proposed. Highlights of each proposal included below:
Assembly One House
The Assembly proposes an All Funds budget of $232.9 billion for State Fiscal Year (SFY) 2023-24, which is $5.9 billion or 2.6 percent over the Executive proposal. This is largely attributed to $2.1 billion in restorations of the Executive proposed actions in Medicaid; and commitments to School Aid, Higher Education, Housing, Medicaid, a human services Cost of Living Adjustment, Indigent legal representation, aid to local governments, and various programs.
Energy and Telecommunication highlights include:
Energy Affordability and EmPower Plus Appropriations
The Assembly included both of the Governor’s proposed $200 million appropriations for the Energy Affordability Program and the EmPower Plus Program. In addition to supporting both appropriations, they also inserted new Article VII language designed to place guardrails around each program, as follows:
EmPower Plus Program New Language
Creates parameters for the EmPower Plus program by providing that both renters and homeowners are eligible to participate in the program and enumerates a non-exclusive list of improvements that the program may provide for (installation of high-efficiency lighting, attic and wall insulation, residential household decarbonization, including building electrification, refrigerator and freezer replacement, water efficient showerheads, or an electric bill credit from a renewable energy system not to exceed fifteen dollars per month). The proposal also requires NYSERDA to report to the legislature on the progress of the program each year.
Energy Affordability Program New Language
The Assembly also includes a new proposal designed to create parameters for the Energy Affordability Program by requiring DPS, in coordination with the energy affordability workgroup, to create a program that will require utilities to ensure that eligible low-income and moderate-income residential customers are provided with a benefit that ensures their energy burden does not exceed six percent of income. Requires utilities to ensure that those participating in the EmPower Plus Program, and that electrify their homes through that program, do not exceed an energy burden of more than six percent of their income. In these circumstances, DPS is authorized to impose a cap on energy usage, which must be evaluated each year.
Next Generation 911 Appropriation
The Assembly accepted the Governor’s proposal to provide $20 million in funding for the Department of Homeland Security and Emergency Services for use in awards to local governments for Next Generation 911 improvements and upgrades.
Governor’s NYPA Owned Renewables Proposal
The Assembly intentionally omitted the Governor’s proposal to authorize NYPA to develop, build, and own renewable energy projects from their one-house proposal. They did include language in their resolution that generally is supportive of allowing other entities, including NYPA, to develop, build, and own renewable energy projects.
Governor’s Cap and Invest Proposal
The Assembly intentionally omitted the Governor’s Cap and Invest language. This omission would not prevent the Executive from creating such a program as authority already exists under the CLCPA.
Governor’s All Electric Buildings Proposal
The Assembly modified the Governor’s proposal by only applying the ban to new buildings. The ban would take effect for new buildings seven stories or less beginning December 31, 2025. For new buildings greater than seven stories, the ban would take effect beginning December 31, 2028. This requirement hinges on the DPS, in consultation with NYISO, determining that the electric power grid infrastructure is sufficient to support the new electrical load in that region. Allows for exceptions including for emergency backup power, occupancy by a commercial food establishment, laboratory, laundromat, hospital or other medical facility, critical infrastructure such as backup power for wastewater treatment facilities, agricultural buildings, a manufactured home, or a crematorium. The bill also creates various deadlines for electrification of State-Owned Facilities. The bill does not explicitly state that local laws may be more stringent.
Governor’s Assessment on Cable Television Companies and Public Utilities
The Assembly modified the Governor’s proposal by extending for one year rather than making these assessments permanent.
Governor’s Authorization for NYPA to Procure and Sell Power
The Assembly intentionally omitted the Governor’s extension until June 30, 2044, of NYPA’s current authority to procure and sell power to its customers. NYPA’s current authority is not due to expire until next year (June 30, 2024).
NYSERDA’s Special Assessment
The Assembly accepted the Governor’s proposal to extend NYSERDA’s authority to continue financing its energy research, development, and demonstration program; its energy policy and planning program; the Fuel NY Program; and climate change related expenses of the Department of Environmental Conservation from a special assessment on gas and electric corporations. This authorization does not include funding for the University of Rochester’s Laboratory for Laser Energetics as it has in previous years, instead providing an appropriation in Aid to Localities for U of R’s LLE.
Governor’s Wind and Solar Valuation Model Proposal
The Assembly accepted the Governor’s proposal to clarify that the adoption of the solar and wind energy system appraisal model is not subject to the State Administrative Procedure Act.
Governor’s Data Privacy Protections for Abortion Access Proposal
The Assembly intentionally omitted the Governor’s proposal which would prevent persons or entities headquartered or incorporated in New York from sharing information with out-of-state law enforcement agencies, whether civil or criminal, of individuals seeking abortion care in New York State.
New Senate Article VII Proposals
Unlike the Assembly, which inserted very few of their own proposals into their one-house budget bill, the Senate included numerous new Article VII proposals. Among those affecting energy or telecommunications include the following:
“Climate Change Superfund Act”
The Senate includes a new proposal to establish a Climate Change Cost Recovery Program that would require fossil fuel companies to pay for past greenhouse gas contributions (As proposed in S.2129). The proposal would require fossil fuel companies in the state to pay $75 billion over a 25-year period for their share of total greenhouse gas emissions during the years of 2000 to 2018.
Fossil fuel companies that would have to participate are any entity that was engaged in the trade or business of extracting fossil fuel or refining crude oil and is determined by DEC to be responsible for more than one billion tons of covered greenhouse gas emissions between 2000 and 2018. Such companies would have to pay into the Program based on how much their company is responsible for the overall greenhouse gas emissions.
The standard applied is strict liability so no finding of wrongdoing would be required. Monies from the program will be deposited into a Climate Change Adaptation Fund and Community Protection Fund.
“NY Home Energy Affordable Transition (HEAT) Act”
The Senate includes a proposal to align the Public Service Law with the emission reduction mandates of the CLCPA, ensure a transition from the gas distribution system to a renewable system for heating and hot water, eliminate entitlement for new gas connections, and cap the energy burden of low-income households to 6% of their income (As proposed in S.2016).
“NYCHA Utility Accountability Act”
The Senate includes a new proposal which is named the NYCHA utility accountability act. The proposal is a heavily modified version of S.220 Myrie and does not include any utility corporation fines for delayed restoration. Instead, the proposal requires that where there is a disruption in the NYCHA’s provision of heat, water, gas, or electricity service to any tenant, NYCHA is required to, at a minimum, reduce the amount of rent to be paid the tenant for the following month by the greater of either (a) seventy-five dollars per month, on a prorated daily basis for each day such tenant experienced a disruption of heat, water, gas, or electricity service; or (b) the amount equal to ten percent of such tenant’s prorated daily cost of rent for each day such tenant experienced a disruption of heat, water, gas, or electricity service.
Reporting on Utility Customer Arrears
The Senate includes a new proposal that would requires utility corporations to report to the PSC copious and granular data regarding utility customer arrears and other information associated with such customers. The PSC is then required to provide a report, within 180 days of the effective date and an update one year later, detailing the information reported by the utilities. Each utility is given 90 days from the effective date to provide the required information to the PSC. Within 180 days of the effective date, the PSC shall require that utilities and/or municipalities establish appropriate financial assistance programs, allowing for the payback of customer arrears resulting from the COVID-19 state of emergency through twenty-four month or thirty-six month payment plans.
Annual Reporting on State Climate Expenditures
The Senate includes a new proposal requiring the Executive to report to the legislature annually an agency climate expenditure report which contains a comprehensive estimate and summary of spending to achieve the state climate goals for each individual agency and for the state as a whole, broken down for each individual climate goal.
Protections for Class C Streams
The Senate includes a new proposal adding “Class C” waterways, those that support fisheries and are suitable for non-contact activities, to the list of waterways protected by the state, for which the disturbance of such would require Department of Environmental Conservation (DEC) permitting. Currently, permitting is required for any project that may disturb a Class A or Class B waterway, which are waterways that support drinking water or contact activities, such as swimming. The practical effect of the bill will be to require DEC water permitting for any project, construction, installation, or improvement near any watercourse in the state.
This proposal, unlike previously vetoed iterations of the standalone bill, provides for an exemption for soil and water conservation districts which have entered into a written memoranda of understanding with the department establishing the plan of operation to be followed in carrying out projects or work affecting such water courses so as to afford proper protection to the public beneficial uses of such water courses. Soil and water conservation districts were opposed to the previous version of the bill.
Residential Solar Tax Credits
The Senate includes a new proposal to expand the maximum credit for the solar energy system equipment credit from $5,000 to $10,000, to allow the credit to include costs of storage systems installed, to make the credit refundable for new businesses (As proposed in S.3596), and to make conforming changes to the geothermal energy systems credit.
Public Service Commission Meeting Review
The Public Service Commission held session last week, voting on several regular agenda items which were presented to and discussed by the commission as well as approving a lengthy consent agenda. Among the highlights include the following actions:
Denial of Cost Recovery for National Grid’s Greenpoint Liquified Natural Gas Plan
The PSC denied full cost recovery for National Grid’s LNG project in Greenpoint, Brooklyn. The project would have installed two additional vaporizers at the Greenpoint Liquified Natural Gas facility in Brooklyn. According to DPS staff and an independent study, the is project is not necessary to meet a reasonable forecast of peak demand at this time. According to the study, the project is not projected to be needed to meet demand until the winter of 2028-29, leaving open the possibility that the PSC reconsiders the petition at a later date.
The project would also need to be granted air permits by the Department of Environmental Conservation in order to move forward, however, the DEC decided to wait for the PSC to determine need prior to making a decision on the air permits.
The PSC did provide for partial cost recovery of $10.5 million in design, engineering, permitting, and the costs of the independent consulting company, but not the remaining $38.8 million in other costs incurred to date. It is unknown if National Grid will move forward despite being unable to recover costs, however, it is widely assumed that they will not as the DEC is unlikely to grant air permits after the PSC has determined the project is not yet needed.
Some commission members indicated they expected this issue to come back before them in the future. Commissioner Diane Burman, who voted against the order, said she was concerned about future system reliability. Commissioner John Howard, who voted for the order, noted that an increased forecast for demand could lead to the project coming back up more quickly. Both commissioners pointed to the strain faced by gas system over Christmas last year, which led utilities and the New York city mayor to ask customers to curtail usage amid cold temperatures. The project would provide a cushion of reliability in such circumstances.
Gas Safety Initiative
The PSC initiated a new proceeding to provide a systemic means for gas utility companies to review, examine, and report on their use of a particular type of component in their distribution systems known as a ‘tapping tee.’ In mid-2018, the National Transportation Safety Board (NTSB) issued a Safety Recommendation Report regarding the installation of PermaLock Tapping Tees in various utility gas distribution systems. The NTSB report was derived from the federal Board’s investigation of a fatal accident involving a leak, explosion, and fire in Millersville, Pennsylvania as well as other incidents in Tennessee and Pennsylvania.
This new proceeding requires gas distribution companies in New York State to confirm their receipt of the NTSB Report, whether or not the companies currently use the PermaLock Tapping Tees in their gas systems, and, if so, the extent of such use. The Department and Commission will evaluate each company’s response to determine appropriate follow-up steps.
Extends Inservice Date for Energy Storage Resources and Maximum Length of Contracts
The PSC extended the inservice date for energy storage resources and the maximum length of contracts for storage procurements by New York’s major utilities. The inservice date was extended at request of the utilities from December 31, 2025, to no later than December 31, 2028. Also extended was the maximum dispatch rights contract duration, from “up to ten years” to “up to fifteen years,” also at the request of the utilities.
In the approval order, the PSC determined that this action would help facilitate the Energy Storage Order’s directive for the Joint Utilities to competitively procure a minimum of 350 MW of qualified energy storage dispatch rights contracts.
New Mid-Hudson Region Area Code Takes Effect
The PSC announced that beginning March 24, 2023, customers in the 845-area code region requesting new mobile or landline telephone service, an additional line, or a move in the location of their service, may be assigned a number in the new 329-area code. The new area code will provide additional phone numbers for residents and businesses in the existing 845-area code region.
The area code overlay requires consumers to continue to dial 10 digits for local calls (area code + 7-digit telephone number) in the 845/329 area or 1+10 digits for calls to other area code regions. Customers in the 845-area code have already been completing local calls by dialing 10 digits since the July 16, 2022, national implementation of the 988 Suicide and Crisis Lifeline.
NYSERDA Announces Agreements on Two Municipally Owned Sites for Renewable Energy Development
NYSERDA announced agreements on two municipally owned sites for potential renewable energy development. Under these memorandums of understanding (MOU), NYSERDA through its Build-Ready Program will work closely with Tompkins County in the Southern Tier and Orange County in the Hudson Valley, to explore the feasibility of developing renewable energy projects on otherwise underutilized lands.
The first MOU was executed by NYSERDA and Tompkins County following a resolution passed by the County Legislature in relation to a closed solid waste landfill which was nominated by the County for participation in the Build-Ready Program. The 112-acre site will potentially host a large-scale renewable solar energy project on the capped landfill and adjacent area.
The second MOU was executed by NYSERDA with Orange County and is the first step to investigating and completing necessary due diligence and community engagement. Located on the County’s former landfill, which closed in 1992, the municipally owned site spans 420 acres and is under consideration for hosting a large-scale solar project.
Doreen M. Harris, President and CEO of NYSERDA said:
Building Decarbonization Coalition Releases Report on the Future of Gas in New York State
The Building Decarbonization Coalition released a report which supports building electrification. The report concludes that that without policy changes, customers who remain on the gas system could see monthly bills rise to $8,000 in 2050 if 90 percent of customers leave the system.
The report considers different scenarios for the future of New York’s gas system that comply with the state’s climate law and assigns projected costs with each.
The first scenario considers continued reliance on the pipeline system while decarbonizing with renewable natural gas. The estimated annual cost is about $13,000 annually in 2050 compared to about $3,000 today, mainly driven by RNG costs.
The second scenario considered is a patchwork of electrification policies with local governments and individuals driving the decision to electrify. This leads to the highest potential estimated costs for consumers — more than $100,000 annually in 2050 — as some customers leave the gas system and those left behind bear increasing costs.
The third scenario considered is a hybrid electrification option with the gas system decarbonized with alternative fuels and maintained at its current size. The report finds that this would have the lowest ratepayer cost for remaining customers – but with the cost still much higher than today’s gas bills — about $9,000 annually.
Not surprisingly, the report does not analyze the potential costs of the coalition’s preferred option of a managed downscaling of the gas system alongside increasing electrification.
Recommendations included in the report urge the PSC to clarify issues around the role of hydrogen and renewable natural gas and take a more comprehensive approach to gas planning in ongoing proceedings, rather than a piecemeal approach with each utility filing their own plans using their own analysis methods.
The Building Decarbonization Coalition includes the following known members; Daikin North America (a heat pump company), Pacific Gas and Electric Company (California based utility), East Bay Community Energy (California based CCA), Peninsula Clean Energy (California based CCA), Ferguson (heat pump distributor), Rheem (heat pump manufacturer), Google (Tech company), Salesforce (customer relationship management software company), SMUD (California based municipal utility), Johnson Controls (building technology company), Los Angeles Department of Water and Power, Southern California Edison (California based utility), NYSERDA, and Sunrun (solar and battery storage company).
Legislative Update
State Assembly Agendas (Bills of Interest)
_________________________________________________________________
Consumer Affairs and Protection (ROZIC)
10:30 AM, Tuesday, March 21, 2023
Room 942 LOB
The committee meeting will be broadcast on the NYS Assembly website
A.2118 Dinowitz – An act to amend the general business law, in relation to arbitration organizations
A.5517 Rozic – An act to amend the general business law, in relation to safeguarding abortion access through data privacy protection
_______________________________________________________________
Corporations, Authorities and Commissions (ZEBROWSKI)
11:30 AM, Tuesday, March 21, 2023
Room 423 LOB
The committee meeting will be broadcast on the NYS Assembly website
A.3164 Magnarelli – An act to amend chapter 62 of the laws of 2003, amending the public service law relating to establishing the New York telecommunications relay service center, in relation to extending certain provisions of such center
A.4587 Paulin – An act to amend the public service law, in relation to requiring telephone companies to disclose information to subscribers regarding the backup power solution for their voice service equipment; and providing for the repeal of such provisions upon expiration thereof
_______________________________________________________________
Real Property Taxation (WILLIAMS)
10:00 AM, Tuesday, March 21, 2023
Room 623 LOB
The committee meeting will be broadcast on the NYS Assembly website
A.1293 Williams – An act to amend the real property tax law, in relation to requiring every assessing unit to conduct a revaluation of assessment at least every eight years
State Senate Agendas (Bills of Interest)
Senate Standing Committee on Finance
Senator Liz Krueger, Chair
11:00 AM, Tuesday, March 21, 2023
Room 124 CAP
Committee meetings can be viewed on the NYS Senate website.
S.1293 Parker – An act directing the department of public service to prepare a written report on the affordability of utility services
S.3354 Skoufis – An act to amend the executive law, in relation to conducting investigations into the administration and enforcement of the New York state uniform fire prevention and building code and the New York state energy conservation construction code
S.4131 Mannion – An act to amend the tax law, in relation to personal income tax credit for residential solar energy systems
________________________________________________________________
Bills Passed Last Week
Passed Assembly Only:
N/A
Passed Senate Only:
S.1179 Harckham/No Same As – Provides an exemption from requirements for the alienation of parkland for renewable energy generating projects with a generating capacity not exceeding two megawatts and which are located above real property currently used for vehicle parking.
S.1316 Parker/A.5328 Cunningham – Relates to requiring the establishment of utility customer financial assistance programs and arrears reporting; requires utilities to report to the public service commission on customers who are in arrears due to the COVID-19 pandemic and to establish financial assistance programs of 24 or 36 months for customers to pay back their arrears.
S.1804 Addabbo/A.4895 Ardila – Requires gas and electric corporations to provide sixty days’ notice to customers whenever there is a service rate or charge increase.
S.3365 Harckham/A.3946 Fahy – Requires the disclosure of insurance information, including the name of the insurance company, the amount of coverage and what is covered under their plan, on permit applications for the construction of pipelines upon any freshwater wetlands.
Passed Both:
A.606 Fahy/S.2222 Harckham – Requires the department of environmental conservation to post draft strategies and methodology developed no later than July 1, 2024; requires at least one public hearing and posting of the final goal strategies and methodology on such department’s website. Chapter Amendment
State Register
Power Authority of the State of New York
- Rates for the Sale of Power and Energy (Proposed)
Public Service Commission
- Notice of Intent to Submeter Electricity and Waiver Request (Proposed)
- Modifications to the Electric Vehicle Make-Ready Program (Proposed)
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