“Recharge New York,” Comparison of 2011 and 2010 legislative proposals

Contact: Ken Pokalsky
March 8, 2011

Governor Cuomo has proposed legislation to create a permanent replacement for Power for Jobs and related energy cost benefit programs. This proposal, called “Recharge New York,” was included as part of the Governor’s proposed Executive Budget.

Provisions of this year’s proposal are mostly identical to 2010 legislation - S.8065 (Aubertine) – that was strongly supported by The Business Council and other business organizations, the Administration and NYPA, and that which passed the State Senate 59-2.

The following table compares last year’s legislation – S.8065 – with the Governor’s “Recharge NY” proposal.

The full text of the proposal is available here. (Go to www.budget.ny.gov/)

Please feel free to contact me for additional information, and to discuss any specific components of these proposals.

 

 

 

 ENERGIZE NY PROGRAM S.8065 (Aubertine / Maziarz) / Governor’s Program Bill RECHARGE NY Fiscal 2011-12 Executive Budget Article VII legislation
PROGRAM ADMINISTRATION
  • no change from current law
  • no change
PROGRAM DESIGN/SIZE TIMING
  • new program begins 7/1/2011
  • application process begins by 1/31/2011
  • 910 MW program, with 455 MW of NYPA hydro (current rural and domestic power) and a like amount of NYPA purchased power (purchasing thru competitive bidding or other mechanism.).
  • minimum 320 MW set side for recipients within current R&D service territories
  • minimum 200 MW set aside for new business and to support capital investment
  • up to 100 MW set aside for small business and non-profits
  • new program begins 7/1/2012
  • application process begins by 2/1/2012
  • size & composition of program remain the same; purchased power provisions modified to allow use of non-hydro NYPA sources; least cost requirement for acquisition of market power was deleted.
  • upstate set aside increased to 350 MW
  • clarifies that this 200MW set aside is available for expansion of in-state business
PROGRAM TRANSITION
  • existing PfJ, PfJ energy savings reimbursements and ECSB benefits extended thru 6/30/11
  • benefit equivalent to average per kwh benefit for the 12 months ending 5/15/2010
  • current program participants not receiving new benefits receive 2/3rd of value of current benefits 2011-12; 1/3rd of value of current benefit 2012-13
  • existing PfJ, PfJ energy savings reimbursements and ECSB benefits extended thru 6/30/12
  • transition benefit equivalent to average per kwh benefit for the 12 months ending 12/31/2010
  • current program participants not receiving new benefits receive 2/3rd of value of current benefits for period 7/1/12 to 6/30/14; 1/3rd of value of current benefit 7/1/14 to 6/30/16
BENEFITS
  • allocation of power, with equal parts NYPA hydro and NYPA purchased power
  • participants can opt out of the NYPA purchased power component prior to signing contract with NYPA
  • No change
CONTRACTS
  • up to seven years; participants can apply for extensions any time within 24 months of contract expiration, or earlier if approved by NYPA
  • requires periodic audits of program participants for compliance with job and investment commitments.
  • allocation may be reduced if participants actual metered demand is less than allocation.
  • No change
ELIGIBILITY
  • all business (excluding retail), including small business defined as normally utilizing minimum peak demand under 400kw
  • non-profit corporations (under NYS NFPC law)
  • current NYPA program participants must be in substantial compliance with contractual commitments
  • No change
CRITERIA
  • significance of power costs to the facility
  • extent that benefit will result in new investment
  • consistency with state and local development plans
  • jobs and payroll at facility
  • jobs created or retained, and willingness to commit to job targets
  • risk of facility closure or relocation and/or job loss
  • facility’s local economic significance
  • prior energy efficiency investments; willingness to do audits, participate in NYPA efficiency programs or make additional efficiency investments
  • consistency with state energy plan
  • potential competitive disadvantage for other in state business
  • for NFPs, whether they provide “critical services or substantial benefits” to community
  • mostly unchanged
  • modified to consider only strategies developed by newly proposed “regional economic development councils”
  • eliminated consideration of consistency with state energy plan
RURAL AND DOMESTIC POWER PROGRAM
  • NYPA funded residential rate subsidy program for current R&D recipients; $100 million in year one, dropping by $14 million per year
  • permanent NYPA financed low income resident rate subsidy programs of $30 million per year after year
  • $8 million/year set aside for current agricultural recipients of R&D power
  • subsidy program funding requires NYPA trustee approval
  • residential rate subsidy program modified to be $100 million for years 1 thru 3, $70 million in year 4, $50 million in year 5, and $30 million thereafter.
ENERGY AUDITS & REPORTS
  • No requirements
  • Facilities receiving RNY contracts required to implement an energy audit at least once every five years; requirement cap be waived for good cause by NYPA. Audit findings to be submitted to NYPA.
  • New provision requiring recipient to make facilities available to NYPA audits, and to provide NYPA with info on energy efficiency and energy-related projects.
OTHER PROVISIONS
  • directs NYPA to work with the PSC to recommend reduced utility power delivery costs for program participants
  • extends thru 2012 current tax credit for utilities for net loss of revenues under current PfJ program
  • Generally the same
  • Also permanently extends NYPA’s broadened authority to fund energy efficiency and clean energy programs for business (adopted as a temporary measure in 2009)