review of existing energy efficiency programs
TRANSCRIPT
Review of Existing Energy Efficiency Programs Pursuant to Chapter 57 of the Laws of 2014
Final Report May 2014
Review of Existing Energy Efficiency Programs Pursuant to Chapter 57 of the Laws of 2014
Prepared by:
New York State Department of Public Service
Albany, NY
and
New York State Energy Research and Development Authority
Albany, NY
May 15, 2014
Table of Contents Acronyms and Abbreviations .................................................................................................iii
Executive Summary ............................................................................................................ ES-1
1 Introduction ....................................................................................................................... 1
1.1 Greenhouse Gas Emissions and Energy Efficiency .................................................................... 2
1.2 Residential Heating and Cooling Systems .................................................................................. 3
2 Existing Energy Efficiency, Financing, and Conversion Programs .............................. 4
2.1 Utility-Administered Energy Efficiency Programs ........................................................................ 5
2.1.1 Residential Electric Energy Efficiency Programs .................................................................... 5
2.1.2 Residential Natural Gas Energy Efficiency Programs ............................................................. 6
2.1.3 Multifamily Electric Energy Efficiency Programs ..................................................................... 6
2.1.4 Multifamily Natural Gas Energy Efficiency Programs .............................................................. 6
2.2 NYSERDA-Administered Energy Efficiency Programs ............................................................... 7
2.2.1 Home Performance with ENERGY STAR® and Assisted Home Performance with ENERGY STAR® ................................................................................................................................... 7
2.2.2 Multifamily Performance Program ........................................................................................... 7
2.3 PSEG-LI Administered Energy Efficiency Programs ................................................................... 8
2.3.1 Cool Homes ............................................................................................................................. 8
2.3.2 Home Performance Direct ....................................................................................................... 8
2.3.3 Home Performance with ENERGY STAR ............................................................................... 8
2.4 Financing Initiatives ..................................................................................................................... 9
2.4.1 Green Jobs – Green New York Residential Financing............................................................ 9
2.4.2 Green Jobs – Green New York Multifamily Financing ............................................................ 9
2.4.3 NY Green Bank ..................................................................................................................... 10
2.5 Utility-Administered Fuel Oil to Natural Gas Conversion Programs .......................................... 10
2.6 Low-Income Energy Efficiency Programs .................................................................................. 11
3 New York City Department of Environmental Protection Regulations .........................12
4 Conclusion .......................................................................................................................13
Appendix A: Budget Bill S6357-D/A8557-D (Chapter 57) .................................................... A-1
Appendix B: Program Matrix ................................................................................................ B-1
Appendix C: Eligible Energy Efficiency Measures ............................................................. C-1
Appendix D: GJGNY Residential Financing ........................................................................ D-1
Appendix E: GJGNY Multifamily Financing......................................................................... E-1
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Acronyms and Abbreviations
AFUE Annual Fuel Utilization Efficiency Btu British thermal units Con Ed Consolidated Edison, Inc. DPS New York State Department of Public Service EDF Environmental Defense Fund EEPS Energy Efficiency Portfolio Standard GJGNY Green Jobs – Green New York HPwES Home Performance with ENERGY STAR IOU Investor-owned utility KEDLI Keyspan Energy Delivery- Long Island (National Grid) KEDNY Keyspan Energy Delivery- New York (National Grid) LIPA Long Island Power Authority MMBtu One million British thermal units MPP Multifamily Performance Program NFG National Fuel Gas NYC DEP New York City Department of Environmental Protection NYCEEC New York City Energy Efficiency Corporation NYS New York State NYSEG New York State Electric and Gas NYSERDA New York State Energy Research and Development Authority O&R Orange and Rockland Utilities PACE Property Assessed Clean Energy PM Particulate matter PSC New York State Public Service Commission PSEG- LI Public Service Enterprise Group, Incorporated-Long Island (LIPA) RG&E Rochester Gas and Electric RGGI Regional Greenhouse Gas Initiative
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Executive Summary The New York State Executive Budget for 2014-2015 includes bill S6357-D/A8557-D, enacted as Chapter 57 of
the Laws of 2014. Part EE of Chapter 57 directs the New York State Department of Public Service (DPS) and the
New York State Energy Research and Development Authority (NYSERDA) to review existing energy efficiency
programs to determine the extent to which funding or financing support is available to support energy efficiency
improvements to heating or cooling systems in the residential and multifamily sectors. The law also requires the
DPS and NYSERDA to assess whether existing programs would provide support to the replacement or improvement
of boilers regulated by the New York City Department of Environmental Protection (NYC DEP).
While the law establishes that no less than $15 million is required to assist residential building owners with the
installation of cleaner, more efficient heating and cooling technologies, a review of public purpose programs
administered by NYSERDA, PSEG-Long Island (PSEG-LI), and the State’s investor-owned utilities1 reveals that
approximately $294.3 million is available through 2015 to support these improvements across New York State. Of
the funds available, $114.3 million can be used to support the improvement or replacement of boilers regulated by
the NYC DEP.
The publicly-funded energy efficiency programs provide incentives to offset the cost of installing energy efficient
measures such as heating and cooling systems, controls, building envelope improvements, and domestic hot water
heating for the residential and multifamily sectors. Customers also have access to low-interest financing through
Green Jobs – Green New York (GJGNY).2 In addition, several utilities offer funds to support fuel oil to natural gas
conversions. The combination of measures that are supported through these programs is likely to contribute to the
improved efficiency by at least 10 percent over the equipment currently installed or reduce fuel usage by at least
10 percent over the equipment currently installed and lead to reductions in carbon emissions.
1 The investor-owned utilities that serve New York State include Central Hudson Gas and Electric Corporation (“Central Hudson”), Consolidated Edison of New York (“Con Edison”), National Fuel Gas Distribution Company (“National Fuel”), National Grid’s three companies (Niagara Mohawk, Keyspan Energy Delivery NY (“Keyspan New York”), and Keyspan Energy Delivery- LI (“Keyspan Long Island”), New York State Electric and Gas Corporation (“NYSEG”), Orange and Rockland Utilities (“Orange and Rockland”), Rochester Gas and Electric Corporation (“RG&E”), Corning Natural Gas Corporation (“Corning Gas”), and Enbridge St. Lawrence Gas (“St. Lawrence Gas”).
2 The Green Jobs – Green New York Act of 2009 required NYSERDA to establish a revolving loan fund an innovative financing mechanisms to provide loans to finance energy improvements for residential and multifamily buildings, as well as small businesses.
ES-1
The majority of currently available funds are from the Energy Efficiency Portfolio Standard (EEPS) and are
restricted to natural gas and electric efficiency. The New York State Public Service Commission (NYPSC)
has authorized funding for EEPS programs through 2015 and is expected to consider the future of clean energy
programs beyond 2015 in upcoming proceedings. While energy efficiency will result in a decrease in the amount
of energy consumed in the residential sector and play a role in emissions reductions, the greatest potential for
emission reductions is through fuel oil efficiency and fuel oil to natural gas conversions, however funding for
these measures is currently minimal. Fuel oil efficiency is currently supported through the Regional Greenhouse
Gas Initiative (RGGI). Several utilities provide specific customer incentives to convert from fuel oil to natural gas,
and NYSERDA can provide incentives for oil to gas conversions through its deployment programs, however the
number of eligible customers is limited to available funds and the customer’s proximity to natural gas infrastructure.
ES-2
1 Introduction On March 31, 2014, the New York State Executive Budget for 2014-2015 was signed into law. The Budget includes
budget bill S6357-D/A8557-D (Chapter 57 of the Laws of 2014), which contains legislation necessary to implement
the transportation, economic development, and environmental conservation budget for the 2014-2015 State fiscal
year. Part EE of the law considers the availability of funds to assist residential and multifamily building owners
with the installation of cleaner, more efficient heating and cooling technologies in the interest of environmental,
health, and energy benefits. As stated in the law, energy efficiency improvements and the conversion to cleaner
burning fuels can reduce carbon and particulate matter emissions.
The legislation identifies the need to use funds from public purpose programs, including those administered by the
New York State Energy Research and Development Authority (NYSERDA) and the utilities, to provide financial
assistance for efficiency improvements. The law states that a minimum of $15 million is required to support retrofits
to heating and cooling systems in the small residential and multifamily sectors.
The law directs the New York State Department of Public Service (DPS) and NYSERDA to:
• Review existing energy efficiency programs administered by utilities and NYSERDA to determine the extent to which funding or financing support is available to assist installing any improvement3 to a heating or cooling system in residential and multifamily buildings which will increase efficiency by at least 10 percent over the equipment currently installed or reduce fuel usage by at least 10 percent over the equipment currently installed and lead to a significant reduction in carbon emissions.
• Determine whether the existing efficiency programs would provide support for the replacement or improvement of boilers regulated by the New York City Department of Environmental Protection.
• Report the findings of such review to the Governor and to the legislature no later than 45 days after the effective date of the act.
This report provides a summary of the energy efficiency programs, financing initiatives, and fuel oil to natural gas
conversion programs that are administered by the investor-owned utilities,4 NYSERDA, and PSEG-LI (PSEG-LI).
The extent to which these programs provide support to replace or improve boilers regulated by the New York City
Department of Environmental Protection (NYC DEP) is also assessed.
3 The law indicates that such improvements include, but are not limited to the installation of a high efficiency boiler or furnace, an improvement to and/or replacement of a burner in a boiler, and any other improvement to a heating system.
4 The investor-owned utilities that serve New York include Central Hudson Gas and Electric Corporation (“Central Hudson”), Consolidated Edison of New York (“Con Edison”), National Fuel Gas Distribution Company (“National Fuel”), National Grid’s three companies (Niagara Mohawk, Keyspan Energy Delivery NY (“Keyspan New York”), and Keyspan Energy Delivery- LI (“Keyspan Long Island”), New York State Electric and Gas Corporation (“NYSEG”), Orange and Rockland Utilities (“Orange and Rockland”), Rochester Gas and Electric Corporation (“RG&E”), Corning Natural Gas Corporation (“Corning Gas”), and Enbridge St. Lawrence Gas (“St. Lawrence Gas”).
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1.1 Greenhouse Gas Emissions and Energy Efficiency
Residential and multifamily buildings account for 29% of the net energy consumption in New York State and nearly
17% of the greenhouse gas emissions from fuel combustion.5 When considering end use energy consumption, space
heating accounts for the majority of energy used in New York State’s residential buildings, at nearly 56%, while
cooling requires nearly 2% of energy consumed.6
Given that space heating represents the greatest energy consumption in this sector, it stands that home heating is the
largest contributor to greenhouse gas emissions in the residential sector, with 30% of households heating with fuel
oil and 54% using natural gas for heating.7 Table 1 provides the intensity of emissions by the predominant fuels
used for heating in New York State.
Table 1. Carbon Dioxide (CO2) and Particulate Matter (PM) Emissions by Heating Fuel
Fuel CO2 (lb/MMBtu)a
PM (lb/MMBtu)b
No. 6 Fuel Oil 165.57 0.050
No. 4 Fuel Oil 165.43 0.041
No. 2 Fuel Oil 163.05 0.024
Natural Gas 116.98 0.008 a U.S. Environmental Protection Agency, Emission Factors for Greenhouse Gas Inventories. April 2014
http://www.epa.gov/climateleadership/documents/emission-factors.pdf b New York City Department of Environmental Protection
The most effective way of decreasing energy consumption and greenhouse gas emissions in the residential sector
is through efficiency improvements. By using fuel more efficiently, homes can realize a decrease in energy intensity
and subsequently in emissions8. In addition to efficiency, converting from carbon intensive fuels such as fuel oil to
natural gas, where possible, for heating will reduce emissions including particulate matter, as indicated by the
emission intensities associated with those fuels in Table 1.
5 NYSERDA. 2011. "Patterns and Trends - New York State Energy Profiles: 1997-2011." 6 U.S Energy Information Administration. 2009. “Energy Consumption Survey” 7 American Community Survey, 5 Year Estimate, 2011 8 "Efficiency and Carbon Emissions." U.S. Energy Information Administration
http://www.eia.gov/emeu/efficiency/greenhouse_.htm
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1.2 Residential Heating and Cooling Systems
The performance of residential and multifamily heating and cooling systems depend on many factors including
the rating and sizing of the furnace, boiler, chiller, or central air conditioner; the distribution system; the building
envelope; and the effective use of controls. A properly sized heating or cooling system will run more efficiently;
distribution system improvements and duct sealing can increase distribution efficiency and reduce losses; controls
can optimize the performance of the heating or cooling system; and insulation and air sealing can reduce air leaks
and keep the conditioned air in the living space.
A recent review of a sample of currently operating residential boilers and furnaces9 found that on average, the
existing operating efficiency heating systems is 74%. Upgrading to higher efficiency heating systems,10 combined
with other efficiency upgrades will achieve the intent of Chapter 57, which is to increase the efficiency of heating
and cooling equipment by at least 10 percent. Similarly, it is likely that older cooling systems have lower efficiency
ratings and would result in comparable efficiency gains when upgraded.
9 Based on a sample of 4,000 NYSERDA energy efficiency projects from 2012 to 2014. 10 The minimum performance standard for furnaces funded through the Energy Efficiency Portfolio Standard is 90%
Annual Fuel Utilization Efficiency (AFUE), while for boilers, it is 82% AFUE, certain energy efficiency programs have higher performance standards.
3
2 Existing Energy Efficiency, Financing, and Conversion Programs Residential and multifamily building owners in New York State currently have access to a portfolio of nearly
$294.3 million in energy efficiency, financing, and fuel oil to natural gas conversion programs that offer financial
support for efficiency improvements to heating and cooling systems. These programs are administered by the New
York State Energy Research and Development Authority (NYSERDA), PSEG-LI, and the investor-owned utilities.
A summary of the available programs and associated budgets, by program category is provided in Table 2.
Table 2. Total Available Funds for Energy Efficiency and Conversion Programs for 2014 and 201511
Program Category Available Funds
2014 - 2015a
Residential Electricb $73,854,139
Residential Gas $78,952,241
Residential Fuel Oil $12,009,619
Multifamily Electric $47,622,859
Multifamily Natural Gas $57,983,492
Multifamily Fuel Oil $15,607,577
Fuel Oil to Natural Gas Conversions $8,295,000
Total $294,324,927 a The total program budgets include total program costs including incentives, implementation, administration,
evaluation, and marketing. b The Residential Electric category includes 2014 program budgets for PSEG- Long Island. 2015 budgets have
not been established as of the publication of this report. The energy efficiency programs are primarily funded through the Energy Efficiency Portfolio Standard (EEPS),
which targets electric and natural gas efficiency. The New York State Public Service Commission (PSC) has
authorized funding for EEPS programs through 201512 and is expected to consider the future of clean energy
programs beyond 2015 in upcoming proceedings. The EEPS programs are funded by a surcharge on utility bills
and are delivered by NYSERDA and the investor-owned utilities, with PSC authorized funding levels by program
offering. NYSERDA also delivers programs funded with proceeds from the Regional Greenhouse Gas Initiative
11 Details on specific energy efficiency programs included budgets are available in the Program Matrix, located in Appendix B.
12 On May 16, 2007 the Commission initiated the Energy Efficiency Portfolio Standard Proceeding in Case 07-M-0548. The Commission has authorized approximately $3 billion through December 31, 2015 to fund a portfolio of electric and natural gas energy efficiency programs through this proceeding.
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(RGGI) that target fuel oil, kerosene, and propane efficiency. The allocation of RGGI funds is based on quarterly
auctions of carbon allowances which are not predictable. As such, the fuel oil efficiency budgets for NYSERDA
are limited and uncertain for the future. In addition to EEPS and RGGI, PSEG-LI funds and administers several
programs that target electric energy efficiency for their customers.
These energy efficiency programs provide rebates or incentives for a variety of energy efficiency measures
or comprehensive energy efficiency projects that can contribute to improving the efficiency of heating and
cooling systems. Specific measures that can improve heating and cooling efficiency include high efficiency
furnaces, boilers, chillers and central air conditioners; distribution system improvements; controls; and envelope
improvements such as insulation and air sealing.13 Each of the efficiency programs listed in this report offer several
options for efficiency upgrades. Customers decide which specific measure or combination of measures is installed,
based on their specific needs and/or recommendations from energy service contractors.
Beyond incentives for efficiency upgrades, residential, and multifamily customers in New York State have the
opportunity to access low-interest financing through Green Jobs – Green New York. In addition, some utilities
offer incentives for fuel oil to natural gas conversions, which can result in substantial emissions reductions, as
well as energy bill savings.
The following sections provide an overview of the available programs that can improve the efficiency of residential
heating and cooling systems and funding through 2015.
2.1 Utility-Administered Energy Efficiency Programs14
2.1.1 Residential Electric Energy Efficiency Programs
2014 - 2015 Available Funding: $25.5 million
Central Hudson and Con Edison administer EEPS-funded electric energy efficiency programs that provide rebates
for the installation of energy efficient central air conditioning equipment, duct and air sealing, and programmable
thermostats. Central air conditioning equipment must meet minimum performance standards.
13 A comprehensive list of energy efficiency measures eligible for incentives is available in Appendix D. 14 The utility-funded programs are grouped by sector and targeted fuel. For detail on specific utility programs,
including budgets, see Appendix B.
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2.1.2 Residential Natural Gas Energy Efficiency Programs
2014 - 2015 Available Funding: $64.4 million
Central Hudson, Con Edison, Corning Gas, Keyspan Long Island, Keyspan New York, National Fuel, Niagara
Mohawk, NYSEG, Orange and Rockland, and RG&E, and St. Lawrence Gas administer EEPS-funded natural gas
energy efficiency programs for residential customers. These programs provide rebates for the installation of energy
efficient natural gas heating equipment for space and domestic hot water, as well as for additional measures that
reduce the consumption of natural gas. Heating systems must meet minimum performance standards.
2.1.3 Multifamily Electric Energy Efficiency Programs
2014 - 2015 Available Funding: $21.3 million
Con Edison, Niagara Mohawk, NYSEG, and RG&E offer electric energy efficiency programs for multifamily
buildings. These programs serve buildings with 5 to 50 units, except for Con Edison, which serves buildings with
5 to 75 units. The programs provide energy audits, rebates for high-efficiency measures, including measures that can
improve the performance of heating and cooling systems, as well as free installation of low-cost, in-unit measures.
2.1.4 Multifamily Natural Gas Energy Efficiency Programs
2014 - 2015 Available Funding: $27.6 million
Con Edison, Keyspan Long Island, Keyspan New York, and Niagara Mohawk administer EEPS-funded natural gas
energy efficiency programs for their multifamily customers. Con Edison and Keyspan New York serve buildings
with 5 to 75 units, and Keyspan Long Island and Niagara Mohawk serve buildings with 5 to 50 units. The efficiency
programs include a variety of energy efficient measures, including heating systems and controls. The installation of
heating systems requires minimum performance standards.
The Keyspan Long Island and Keyspan New York programs provide owners of multifamily buildings with technical
assistance and incentives for energy efficiency measures. The Niagara Mohawk program provides energy audits
and incentives for high-efficiency measures as well as the free installation of low-cost measures. The Con Edison
program provides energy audits and prescriptive rebates for common area spaces, building weatherization measures,
and free in-unit installation of low-cost measures. Con Edison also offers the Multifamily Low-Income program to
provide funding to the New York City Housing Authority and the Westchester County Housing Authority for
rebates on high efficiency gas heating equipment and weatherization measures.
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2.2 NYSERDA-Administered Energy Efficiency Programs
2.2.1 Home Performance with ENERGY STAR® and Assisted Home Performance with ENERGY STAR®
2014 - 2015 Available Funding: $79.4 million
The Home Performance with ENERGY STAR® (HPwES) program is a whole-house energy efficiency program
designed to reduce the energy consumption of New York State’s existing one-to-four family homes and low-rise
residential buildings. HPwES utilizes a network of Building Performance Institute (BPI) accredited contractors
to provide a Green Jobs – Green New York free or reduced cost home energy assessment to identify opportunities
for energy efficiency improvements within the home. Eligible measures include cost-effective heating and cooling
system upgrades, envelope improvements, efficiency improvements to domestic hot water heating, lighting
efficiency, and the installation of controls. Fuel oil to natural gas conversions are also incentivized through the
program. Heating and cooling systems supported through the program must meet minimum performance
requirements
HPwES offers a 10% cash-back incentive on the cost of the workscope; low- to moderate-income customers with
a household income of up to 80% of the Area Median Income (AMI) may qualify for an incentive of up to 50% of
the energy efficiency measures, up to $5,000 through the Assisted Home Performance with ENERGY STAR®
(AHPwES) program component. Customers can access low-interest financing through Green Jobs – Green
New York.
The programs are funded through EEPS for electric and natural gas efficiency, and through RGGI for efficiency
improvements for customers that heat with fuel oil, kerosene, and propane.
2.2.2 Multifamily Performance Program
2014 - 2015 Available Funding: $72.3 million
The Multifamily Performance Program (MPP) offers a comprehensive, whole building approach to energy
efficiency for multifamily buildings with five or more units throughout New York State. The MPP requires
building owners to save at least 15% whole building energy savings by developing a work scope and installing
upgrades identified within the scope. To participate, building owners must select a NYSERDA-approved
Multifamily Performance Partner to conduct a whole-building assessment. The assessment is used to identify
energy-saving potential and the most cost-effective strategy for achieving savings. The resulting Energy
Reduction Plan will outline a work scope for the building and detail energy savings attributable to the property.
Eligible measures include heating and cooling system upgrades, envelope improvements, efficiency improvements
to domestic hot water heating, lighting efficiency, and the installation of controls.
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Participants can select any combination of energy conservation measures to include in their work scope as long
as the measures and the work scope as a whole meet the program’s cost-effectiveness requirements. As the
building owner implements the Energy Reduction Plan and realizes energy savings, they are eligible for
NYSERDA incentives. Incentives come in the form of per unit payments and range from $500-$700 per unit for
market-rate properties and $800 - $1,000 for affordable-housing properties. Existing buildings that project at least
20% energy reduction in the Energy Reduction Plan may also be eligible for an additional performance payment.
The programs are funded through EEPS for electric and natural gas efficiency and through RGGI for efficiency
improvements for customers that heat with fuel oil, kerosene, and propane.
2.3 PSEG-LI Administered Energy Efficiency Programs15
2.3.1 Cool Homes
2014 - 2015 Available Funding: $7.4 million
The Cool Homes program seeks to improve the energy efficiency of residential heating, ventilation, and air
conditioning (HVAC) systems throughout Long Island. Through the assistance of a PSEG- LI -approved contractor,
residential account holders can apply for incentives associated with the installation of higher-efficiency HVAC
equipment including central air conditioners, furnace fans, and geothermal and air source heat pumps, as well
as ductless mini-split systems. Further, the program offers a rebate for the early retirement of inefficient central
air conditioning.
2.3.2 Home Performance Direct
2014 - 2015 Available Funding: $3.4 million
The Home Performance Direct (HPD) program conducts free, full-home audits with a LIPA-certified home
energy rater for (1) electric heated homes and (2) non-electric heated homes with central air conditioning and high
electricity usage. The HPD program provides free air and duct sealing measures and compact fluorescent light bulbs.
2.3.3 Home Performance with ENERGY STAR
2014 - 2015 Available Funding: $0.9 million
The Home Performance with ENERGY STAR (HPwES) program consists of a full-home audit, home energy rating
score, and possible incentives for new, efficient equipment. HPwES encourages installation of weatherization,
insulation, and other building shell measures through incentives for residential account holders.
15 Budgets provided for PSEG-LI administered programs are for 2014 only. The 2015 budgets for PSEG-LI programs have not been determined as of April 2014.
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2.4 Financing Initiatives
The Green Jobs – Green New York Act of 2009 established financing programs for residential, multifamily, and
small business/not-for-profit customers, while the Power NY Act of 2011 expanded on GJGNY and established the
mechanism for On-Bill Recovery (OBR) Financing Program to provide residential and small business/not-for-profit
customers with an option to finance energy improvements as a line-item on their utility bill. In addition, there are
opportunities where NY Green Bank could facilitate the installation of energy efficient upgrades.
2.4.1 Green Jobs – Green New York Residential Financing
NYSERDA offers two low-interest loan options on a statewide basis through GJGNY for residential energy
projects conducted through the HPwES program. The OBR Loan and the Smart Energy Loan options are available
for up to $13,000 per applicant, and up to $25,000 if the project meets a payback period of 15 years or less. Both
options offer repayment periods of 5, 10 or 15 years, and may be combined with other incentives.
The OBR Loan provides homeowners with the convenience of paying for energy improvements as a line-item
on their utility bill. If a borrower with an OBR Loan intends to sell the property, the OBR Loan obligation may be
transferred to the future purchaser, or can be satisfied as a condition of the sale. Participating utilities include Central
Hudson, Con Edison, PSEG-LI, Niagara Mohawk, Keyspan Long Island, Keyspan New York, NYSEG, Orange and
Rockland, and RG&E.
The Smart Energy Loan is an unsecured product that offers affordable interest rates and simple repayment options.
For specific information on the GJGNY residential financing options, refer to Appendix D.
2.4.2 Green Jobs – Green New York Multifamily Financing
NYSERDA’s GJGNY Multifamily Financing Program provides owners of multifamily buildings access to attractive
financing to install cost-effective energy improvements. The owner of any multifamily building consisting of five or
more units located anywhere in New York State is eligible to participate in the GJGNY Financing Program. To
access financing, buildings are required to receive a NYSERDA-approved analysis of their building systems.
Once the analysis and workscope has been approved by NYSERDA, the building owner (borrower) is eligible for
financing. NYSERDA’s share of the financing is limited to no more than 50% of the cost of the approved scope of
work minus any program incentives. NYSERDA’s share of the financing is capped at $5,000 per unit or $500,000
per project, whichever is less. NYSERDA will provide its share of the financing at 0% interest to the lender as
selected by the building owner.
For specific information on the GJGNY multifamily financing options, refer to Appendix E.
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2.4.3 NY Green Bank
As a financial institution operating at the wholesale level, NY Green Bank is open to working with private sector
intermediaries that are having success in the markets, including the installation of energy efficient heating and
cooling equipment, but whose success is limited by a lack of needed financing. There has been feedback from
the market that there are indeed many capital gaps in connection with residential and multifamily building energy
improvement projects. For potential deals that meet NY Green Bank’s investment mandate and underwriting
criteria, the ways in which NY Green Bank could motivate energy efficient upgrades include:
• Providing financial institutions or other funding parties with additional capital to encourage expansion in their lending activities—examples range from a larger variety of ownership structures, to a greater range of creditworthiness, to extended tenors or to an expanded set of capital improvements.
• Partnering with organizations, such as the Environmental Defense Fund (EDF), the New York City Energy Efficiency Corporation (NYCEEC), and the Energy Improvement Corporation, together with private sector capital providers, to develop and expand Property Assessed Clean Energy (PACE) financing.
• Acting as an intermediary, in partnership with experienced private sector developers, utility companies and lenders, to facilitate the flow of capital investments through on-bill recovery mechanisms or project aggregation mechanisms.
• Playing a role in providing transaction and efficiency performance data to the markets to further encourage investor understanding and confidence in the value of energy efficiency’s positive operating cost impacts. Data transparency can also facilitate the lending market to incorporate energy savings and improvements into underwriting standards, which can in turn encourage greater availability of credit and reduction in project and borrowing costs.
NY Green Bank issued its first solicitation on February 5, 2014, seeking proposals from private sector capital
providers and other clean energy industry participants to outline potential partnership arrangements with NY
Green Bank that would facilitate the financing and development of viable clean energy projects in New York State.
Although specific NY Green Bank activities depend on the identification of need by firms in the financial and clean
energy industries, scalable projects that benefit the residential and multifamily sectors are eligible for inclusion in a
potential financing arrangement.
2.5 Utility-Administered Fuel Oil to Natural Gas Conversion Programs
2014- 2015 Available Funding: $8.3 million
Rate plans for Con Edison, Niagara Mohawk, and KeySpan New York provide for incentives for residential,
multifamily, commercial, as well as existing cooking only customers who currently heat with oil, to convert to
natural gas heating. Eligible customers are able to combine conversion incentives with rebates or incentives offered
through efficiency programs to further offset the cost of the high efficiency natural gas heating equipment. Although
conversion funds are available to provide customer incentives to convert from heating oil to natural gas, the number
of eligible customers is limited to available funds and the customer’s proximity to gas infrastructure.
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2.6 Low-Income Energy Efficiency Programs
In addition to the energy efficiency, conversion, and financing initiatives outlined above, an additional $46.6 million
is available to support energy efficiency improvements for low-income consumers through 2015. The NYSERDA-
administered EmPower New York and the NFG-funded Residential Low-Income program provide energy efficiency
services for households at or below 60 percent of the State Median Income. Typical efficiency improvements
include insulation, air sealing, and the replacement of inefficient appliances and lighting. On a case-by-case basis,
these programs can repair or replace inoperable heating systems or provide for conversion from fuel oil to natural
gas systems.
Due to the size of the budget relative to the demand for efficiency improvements in low-income homes, heating
system replacements are not specifically targeted by these programs. The services that are provided can improve
the overall energy efficiency of the housing unit, however. As such, the budgets for these programs were not
considered in this program review.
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3 New York City Department of Environmental Protection Regulations The NYC DEP requires registration for the installation, alteration, or use of fuel burning equipment with a gross
input equal to or greater than 350,000 British thermal units (Btu), but less than 2.8 million Btu. Fuel burning
equipment that uses number 4 or number 6 fuel oil, or has a gross Btu input equal to or greater than 2.8 million Btu
require certificates to operate. Fuel burning equipment for small residential applications and equipment with a gross
input of less than 350,000 Btu have exemption from these regulations.
In support of the PlaNYC initiative16, New York City has recently enacted policies to regulate the use of large
boilers and transition large fuel burning equipment to cleaner burning fuel. Chapter 2 of Title 15 of the Rules of the
City of New York were amended in 2011 to prohibit the use of fuel oil grade numbers 4 and 6 in heat and hot water
boilers and burners. All buildings are required to phase out the use of number 4 and 6 fuel oil by 2030 in favor of
low sulfur number 2 fuel oil or natural gas. The exception to this rule is that building owners can continue to use
number 4 and 6 fuel oil if they demonstrate that the emissions will be no more than would be emitted by the
combustion of number 2 fuel oil on an annual basis.
With a threshold of 350,000 Btu, the NYC DEP regulations on boilers apply to larger, central systems most
commonly found in multifamily, commercial, institutional, and industrial buildings. Through 2015, the budget for
multifamily energy efficiency and conversion programs within the jurisdiction of the NYC DEP is approximately
$114.3 million17. The EEPS-funded multifamily programs18 can provide incentives to improve the efficiency of
existing boilers or for the purchase of natural gas fired boilers, after a fuel conversion has taken place. Similarly,
the NYSERDA MPP can provide incentives for efficiency upgrades to heating systems or the purchase of natural
gas fired boilers, provided that the upgrade occurs in the context of a comprehensive energy efficiency upgrade that
will reduce the building’s energy consumption by at least 15%. Multifamily customers can also access low-interest
financing through the GJGNY program. In addition, Con Edison and Keyspan New York offer incentives to
customers for converting fuel oil to natural gas conversions.
16 The PlaNYC initiative established the goal of reducing the city's greenhouse gas emissions by 30 percent below 2005 levels by 2030.
17 The budget of $114.3 million includes total program costs including incentives, implementation, administration, evaluation, and marketing.
18 The multifamily programs that serve the NYC DEP's jurisdiction are the Con Edison Multifamily Energy Efficiency Program (electric and natural gas), the Con Edison Multifamily Low Income Program (natural gas), the Con Ed fuel oil to natural gas conversion program, Keyspan New York Multifamily Energy Efficiency Program (natural gas), the Keyspan New York fuel oil to natural gas conversion program, and the NYSERDA Multifamily Performance Program (electric, natural gas, and oil). While the Con Edison and Keyspan New York programs are specifically administered within EPA’s jurisdiction, the NYSERDA Multifamily Performance Program is administered on a statewide basis.
12
4 Conclusion A review of the current suite of energy efficiency, financing, and fuel oil to gas conversion programs administered
by NYSERDA, PSEG-LI, and the investor-owned utilities finds that the currently available funding level of
$294.3 million for 2014 and 2015 surpasses the legislature's minimum funding threshold of $15 million outlined
in Chapter 57 to provide assistance to residential building owners to improve their heating and cooling systems.
Beyond financial incentives, residential and multifamily customers have access to low-interest financing through
Green Jobs – Green New York. Of the $294.3 million available, $114.3 million can be used to support the
improvement or replacement of boilers regulated by the NYC DEP.
The majority of these program funds are only available for natural gas or electric efficiency upgrades. To increase
fuel oil efficiency and reduce emissions in the residential sector, additional funding is needed for fuel oil efficiency
or fuel oil to natural gas systems conversions.
This review finds that the combination of measures for the residential and multifamily sectors that are supported
through these programs is likely to contribute to the improved efficiency by at least 10 percent over the equipment
currently installed or reduce fuel usage by at least 10 percent over the equipment currently installed and lead to
reductions in carbon emissions.
13
Appendix A: Budget Bill S6357-D/A8557-D (Chapter 57)
TRANSPORTATION, ECONOMIC DEVELOPMENT AND ENVIRONMENTAL CONSERVATION S6357-D/A8557-D (CHAPTER 57 OF THE LAWS OF 2014, PART EE)
Section 1. Legislative intent. The legislature recognizes the environmental health and energy benefits of increasing the efficiency of residential heating and cooling systems, and converting to cleaner fuel and more efficient heating and cooling systems that can reduce emissions of carbon and particulate matter that is two and one-half microns or less in width (commonly referred to as PM 2.5 emissions). The legislature also recognizes the need to use funds from public purpose programs, including those administered by the New York state energy research and development authority and utilities, in order to provide financial assistance to building owners seeking to install and improve heating and cooling retrofits. The legislature finds that no less than fifteen million dollars is required to assist residential building owners with the installation of cleaner, more efficient heating and cooling technologies.
§ 2. The department of public service and the New York state energy research and development authority shall review existing energy efficiency programs administered by utilities and/or such authority to determine the extent to which funding or financing support is available to assist installing any improvement to a heating or cooling system in residential and multi-family buildings which will increase efficiency by at least ten percent over the equipment currently installed or reduce fuel usage by at least ten percent over the equipment currently installed, and lead to a significant reduction in carbon emissions. Such improvements shall include, but are not limited to, the installation of a high efficiency boiler or furnace, an improvement to and/or replacement of a burner in a boiler, and any other improvement to a heating system. Such review shall determine whether the existing efficiency programs would provide support for the replacement or improvement of boilers regulated by the New York city department of environmental protection.
§ 3. The department of public service and New York state energy research and development authority shall report the findings of such review to the governor and to the legislature no later than 45 days after the effective date of this act.
§ 4. This act shall take effect immediately.
A-1
Appendix B: Program Matrix
Program Administratora Program Eligible Fuel Market Segment Funding Source Available Funds 2014-2015b
Central Hudson Residential Electric HVAC Electric 1-4 Family EEPS II $1,115,668
Residential Gas HVAC Natural Gas 1-4 Family EEPS II $628,635
Con Edison
Multifamily Low Income Natural Gas Multifamily (LI buildings)
EEPS II $4,111,966
Multifamily Energy Efficiency Program Electric Multifamily EEPS II $15,873,750
Residential Electric Program Electric 1-4 Family EEPS II $12,661,146
Multifamily Energy Efficiency Program Natural Gas Multifamily EEPS II $8,237,801
Residential HVAC Natural Gas 1-4 Family EEPS II $7,111,598
Fuel Oil to Natural Gas Conversion Natural Gas
1-4 Family, Multifamily, Commercial/Industrial Rate Case $2,930,000
Corning Gas Residential HVAC Program Natural Gas 1-4 Family EEPS II $551,054
Keyspan Long Island (National Grid)
Multifamily Energy Efficiency Program Natural Gas Multifamily EEPS II $713,435
Residential High-Efficiency Heating and Water Heating and Controls Program Natural Gas 1-4 Family EEPS II $10,405,552
Keyspan New York (National Grid)
Multifamily Energy Efficiency Program Natural Gas Multifamily EEPS II $7,433,723
Residential High-Efficiency Heating and Water Heating and Controls Program Natural Gas 1-4 Family EEPS II $13,293,405
Fuel Oil to Natural Gas Conversion Natural Gas 1-4 Family, Multifamily, Commercial/Industrial Rate Case $3,365,000
National Fuel Residential Rebate Program Natural Gas 1-4 Family EEPS II $7,648,906
Niagara Mohawk (National Grid)
Energy Wise Electric Program Electric Multifamily EEPS II $1,866,447
B-1
a. Utility-administered programs are available within the utility service territory, while the programs administered by NYSERDA are available statewide. b. The total available funds include total program costs including incentives, implementation, administration, evaluation, and marketing. The budgets for the PSEG-Long Island programs are
for 2014, 2015 budgets have not been established as of the publication of this report.
Program Administratora Program Eligible Fuel Market Segment Funding Source Available Funds 2014-2015b
Niagara Mohawk (National Grid)
Energy Wise Gas Program Natural Gas Multifamily EEPS II $2,600,935
Residential High-Efficiency Heating and Water Heating and Controls Program - Incremental Program
Natural Gas 1-4 Family EEPS II $15,505,151
Fuel Oil to Natural Gas Conversion Natural Gas 1-4 Family, Multifamily, Commercial/Industrial Rate Case $2,000,000
NYSEG Multi-family Energy Efficiency Program Electric Multifamily EEPS II $1,942,773
Residential Gas HVAC Natural Gas 1-4 Family EEPS II $3,070,811
NYSERDA
Multifamily Performance Program
Electric Multifamily EEPS II $26,334,708
Natural Gas Multifamily EEPS II $30,397,590
Fuel Oil Multifamily RGGI $15,607,577
Home Performance with ENERGY STAR
Electric 1-4 Family EEPS II $14,391,302
Natural Gas 1-4 Family EEPS II $6,984,786
Fuel Oil, Propane, Kerosene 1-4 Family RGGI $6,881,911
Assisted Home Performance with ENERGY STAR
Electric 1-4 Family EEPS II $33,923,022
Natural Gas 1-4 Family EEPS II $12,051,382
Fuel Oil, Propane, Kerosene
1-4 Family RGGI $5,127,706
Orange and Rockland Residential HVAC-G Rebate Program Natural Gas 1-4 Family EEPS II $1,540,159
PSEG Long Island (LIPA)
Home Performance with Energy Star Electric 1-4 Family PSEG Long Island (LIPA)
$986,000
Home Performance Direct Electric 1-4 Family $3,370,000
Cool Homes Electric 1-4 Family $7,407,000
RG&E Multi-family Energy Efficiency Program Electric Multifamily EEPS II $1,605,181
Natural Gas Multifamily EEPS II $4,488,041
St. Lawrence Gas Residential HVAC Rebate Program Natural Gas 1-4 Family EEPS II $160,802
$294,324,927
B-2
Appendix C: Eligible Energy Efficiency Measuresa Measure Category Measure Residential Multifamily
Appliance Dehumidifier Appliance Primary Refrigerator
Appliance - Control Advanced Power Strip Appliance Recycling Dehumdifier Appliance Recycling Refrigerator/Freezer
(Refrigerator Only)
Appliance Recycling Room Air Conditioner Building Shell Air Sealing Building Shell Door Sweep Building Shell Weather Stripping Building Shell Exterior Door
Building Shell Insulation Building Shell Window - Double Pane
DHW Air Source Heat Pump Water Heater DHW Domestic Hot Water Pipe Insulation DHW Domestic Hot Water Tank Wrap DHW Indirect Water Heater
DHW - Control Faucet Aerator DHW - Control Low-Flow Showerhead DHW - Control Water Heater Thermostat Setback
HVAC Air Source Heat Pump HVAC Central Air Conditioner HVAC Chiller HVAC Duct Sealing HVAC Electronically Commutated Motor (ECM) HVAC Ground Source Heat Pump HVAC Room Air Conditioner HVAC Space Heat Pipe Insulation HVAC Boiler HVAC Duct Insulation HVAC Furnace HVAC Heating System Repair/Replacement HVAC Steam Trap HVAC Thermostatic Radiator Valve
HVAC - Control Boiler Reset Control
C-1
Measure Category Measure Residential Multifamily
HVAC - Control Energy Management System HVAC - Control Programmable Thermostat
Lighting Relamping and Reballasting Lighting Fixture Lighting Lamp
Lighting - Control Interior Lighting Control Motor & Drives Motor Motor & Drives Variable Frequency Drive System
a This list contains the most common measures that are eligible for incentives in the residential and multifamily programs. Measures in bold font are most likely to contribute to the efficiency improvement of heating and cooling systems in residential and multifamily buildings.
C-2
Appendix D: GJGNY Residential Financing
D-1
D-2
Appendix E: GJGNY Multifamily Financing
E-1
NYSERDA, a public benefit corporation, offers objective information and analysis, innovative programs, technical expertise, and funding to help New Yorkers increase energy efficiency, save money, use renewable energy, and reduce reliance on fossil fuels. NYSERDA professionals work to protect the environment and create clean-energy jobs. NYSERDA has been developing partnerships to advance innovative energy solutions in New York State since 1975.
To learn more about NYSERDA’s programs and funding opportunities, visit
nyserda.ny.gov or follow us on Twitter, Facebook, YouTube, or Instagram.
The Department of Public Service has a broad mandate to ensure that all New Yorkers have access to reliable utility services. The Department is the staff arm of the Public Service Commission. The Commission regulates the state’s electric, gas, steam, telecommunications, and water utilities. The Commission is charged by law with responsibility for setting rates and ensuring that adequate service is provided by New York’s utilities. In addition, the Commission exercises jurisdiction over the siting of major gas and electric transmission facilities and has responsibility for ensuring the safety of natural gas and liquid petroleum pipelines. Bipartisan by law since 1970, the Commission consists of up to five members, each appointed by the Governor and confirmed by the State Senate for a term of six years, or to complete the unexpired term of a former Commissioner. The Chairman, designated by the Governor, is the chief executive officer of the Department of Public Service.
To learn more about Department of Public Service programs and funding
opportunities, visit dps.ny.gov.
New York State Energy Research and
Development Authority
17 Columbia CircleAlbany, New York 12203-6399
toll free: 866-NYSERDAlocal: 518-862-1090fax: 518-862-1091
New York State Department of Public Service
13 Empire State PlazaAlbany, New York 12223-1350
Helpline 1-800-342-3377
Review of Existing Energy Efficiency Programs Pursuant to Chapter 57 of the Laws of 2014
Final Report May 2014
State of New York Andrew M. Cuomo, Governor
New York State Energy Research and Development AuthorityRichard L. Kauffman, Chair | John B. Rhodes, President and CEO
New York State Department of Public ServiceAudrey Zibelman, Chair of the NYS Public Service Commission
GEN-NYSERDA-eebillS6357-D/A8557-D-r-1-v15/2014