New York State System Benefits Charge (SBC) –

NGA Center for Best PracticesApril 29, 2004Bob Callender

Vice President for Programs NYSERDA

NYSERDA Overview

• Established in 1975 by State Legislature• Mission: To identify solutions to State’s

energy challenges in ways that benefit the State’s economy and environment

• Forge public/private partnerships with businesses, municipalities, residents, and other energy stakeholders to accomplish this goal

NYSERDA Responsibilities• Research & Development• Energy Planning and Analysis• Coordination of State’s Energy Issues• Manage West Valley Nuclear Clean-up• Public Awareness of Energy Efficiency• Development of Saratoga Technology +

Energy Park – STEP• System Benefits Charge Administrator

% of Ratepayer Contributions by Service Area

NMPC25.52%

NYSEG13.56%

O&R3.57%

RG&E2.48%

CHG&E4.36%

Con Edison50.51%

% of Program Funds Encumbered by Service Area

O&R2.78%

RG&E3.86%

CHG&E4.08%

Con Edison46.00%

NMPC30.94%

NYSEG12.34%

Collections and Distributions Total 8 year budget = $932.1 million

SBC Order’s Public Policy Goals

• Improve system-wide reliability and increase peak electricity reductions through end user efficiency actions

• Improve energy efficiency and access to energy options for under served customers

• Reduce the environmental impacts of energy production and use

• Facilitate competition in the electricity markets to benefit end-users

Objectives to Achieve Policy Goals• Reduce peak electricity demand

• Improve energy efficiency and reduce electricity use by all sectors

• Save money for consumers, businesses, and institutions

• Reduce the environmental impacts of energy use• Foster long-term market changes to sustain and

grow benefits• Develop next generation efficient end-use

technologies

Major Program Accomplishments• Reduced annual statewide electric energy

requirements by 1,000 Gwh• Peak Demand Reductions of 870 MW

permanent/ callable• Enhanced electric system reliability with 100

Gwh of renewable resources • Produced $140 million a year in energy bill

reductions• Reduced air pollution by: 1,000 tons of Nox,

1,750 tons of SO2, and 800,000 tons of CO2• Leveraged $3 of private project investment for

every $1 of SBC funds

Four Major Program Areas

• Business and Institutional Energy Efficiency

• Residential Energy Affordability• Low-Income Energy Affordability• Research and Development

Business and Institutional Energy Efficiency

Business and Institutional Energy Efficiency Program Area Budget (in millions)Total Program Area Budget = $355.4 million

New Construction Peak Load Reduction

Technical Assistance

C/I Performance

Municipal Water/Wastewater Loan Fund

Energy Management

Energy Efficient Products

$138.438.9%

$37.010.4%

$10.52.9%

$79.422.3% $42.7

12.0%

$2.80.8%

$12.33.4%

$32.29.1%

Source: NYSERDA

Town of Amherst (CIPP)• Project Cost -$7

million • 11 million kWh/yr

savings• $1.1 million

NYSERDA incentive• Cost Savings-

$875,000 annually• ESCO- Siemens

Building Technologies

NYS DOT – New Construction Program

• NYS Department of Transportation Equipment Management Shop

• An incentive of $195,961• Geothermal Heat Pump System, High

Efficiency Windows, Direct Digital Control Energy Management System, a 30 KW Photovoltaic System, and High Efficiency Fluorescent Fixtures and Occupancy Sensors

• Project will benefit from 123,627 kWh/per year in reduced energy consumption, and $18,205 per year in energy cost savings

Erie County – Technical Assistance Program

• $20,000 in NYSERDA matching funds for county-wide energy efficiency planning

• Facilitated $4 million in facility upgrades

• Created $1 million in energy bill savings for the County

• An additional $500,000 was paid in installation incentives from NYSERDA

Residential Energy AffordabilityResidential Energy Efficiency Program Area Budget (in millions)

Total Program Area Budget = $165.2 million

Other

General Outreach and Education

Keep Cool

Small Homes

Multifamily Buildings and Homes

Energy Star Products

Program Marketing

$22.613.7%

$27.616.7%

$20.212.2%

$44.226.8%

$29.417.8%

$6.23.8%

$15.09.1%

Source: NYSERDA

Home Performance with Energy Star

• Home Performance with Energy Star® has created an industry infrastructure through certifying contractors to conduct home energy assessments

• The awareness of Energy Star® and the Home Energy Rating System is unprecedented

Low-Income Energy AffordabilityLow-Income Program Area Budget (in millions)

Total Program Area Budget = $119.6 million

Awareness

Coordination (LIFE)

Aggregation (Buying Strategies)

Direct Installation

Assisted Home Performance

AMP

$26.622.2%

$9.98.2%

$3.73.1%

$2.82.3%

$0.510.4%

$76.263.7%

Source: NYSERDA

Low-Income Energy Affordability

• Low-Income Assisted Multi-family Buildings Program (AMP) has created a new way to address Multi-family housing

• The program provides technical assistance, financial packaging, consumption awareness, and sub-metering opportunities to dramatically decrease energy consumption

Research and DevelopmentResearch and Development Program Area Budget (in millions)

Total Program Area Budget = $210.8 million

Renewable Wholesale

Renewable End-Use

Next Generation R&D

Other

DG/CHP

EMEP

Source: NYSERDA

$57.227.1%

$67.131.8%

$12.76.0%

$22.710.8%

$29.614.0%

$21.510.2%

Research and Development

• Contracted $7 million for production incentives towards the operation of 41.5 MW of wind power

• An additional $15 million in incentives will be provided for another 4 wind projects - over 450 MW of wind power is expected to be developed under the Program

• Three PV Practitioner Training Institutes offering a 210 hour program in installation and repair

• Trained installers can sit for National certification program that is now available

Program Evaluation Efforts• Efforts continue to be in accordance with

NYSERDA/DPS/PSC Memorandum of Understanding

• An independent effort working with all stakeholders

• SBC Advisory Group continues to act as the Independent Program Evaluator of record

• Advisory Group was active in contractor selection and developing the scope of work

Solicitation & Contracting Process

• Competitive Solicitations

• Outreach Efforts

• Evaluation Process

• Streamlined Contracting Process

SBC Statistics

• 140 Solicitations Issued

• 8549 Contract Awards (Plus 2,300 contract modifications and/or Task Order Changes)

• 13,400 Invoices Processed for Fiscal Year 03-04 (A Decrease From Previous Year)

• 49,000 incentives processed for Keep Cool RAC Bounty and P.O.P. Washer Purchases