A 11556: Directs NYSERDA to issue a request for proposals to identify cities, towns, or villages that are interested in participating in municipal-level energy efficiency and weatherization pilot projects to help decrease residential energy usage and reduce future capital costs for utilities; directs NYSERDA to identify three pilot areas focusing on the ability to replicate projects elsewhere and the costs and benefits to ratepayers both in the affected area and in the rest of the utility service territory.

  
  STATE OF NEW YORK ________________________________________________________________________ 11556  IN ASSEMBLY June 1, 2026 ___________ Introduced by COMMITTEE ON RULES -- (at request of M. of A. Conrad) -- read once and referred to the Committee on Energy AN ACT in relation to directing the New York state energy and develop- ment authority to establish pilot programs addressing energy efficien- cy and weatherization The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. 1. The Legislature hereby finds that energy efficiency 2 programs are one of the most effective methods of conserving energy and 3 helping to avoid the need for costly electric plant upgrades. 4 2. The energy efficiency and weatherization utility program budgets 5 between 2026 and 2030 are expected to be an estimated $3.8 billion. To 6 maximize the impact of these funds, energy efficiency and weatherization 7 programs must be used efficiently, and projects resulting from these 8 funds must be welcomed by the local community. Municipal involvement 9 will also help facilitate the coordinated development of larger-scale 10 residential energy efficiency and weatherization projects that result in 11 significant decreases in overall energy usage in local utilities, easing 12 the burden on the electric grid and helping to decrease the need for 13 future capital expenditures. 14 3. Given the wide range of energy efficiency and weatherization 15 programs and the variety of funding sources, ensuring that energy effi- 16 ciency and weatherization funds are spent as effectively and efficiently 17 as possible requires a careful review of existing federal, state and 18 utility-funded resources and the involvement of municipal governments to 19 leverage those resources and provide local knowledge. 20 4. To ensure these resources are used effectively, the legislature 21 finds it prudent to direct the New York state energy research and devel- 22 opment authority to coordinate activity between municipalities, the 23 public service commission and local utilities in the advancement of 24 large-scale municipal-level energy efficiency residential weatherization 25 pilot projects. 26 § 2. 1. (a) Within six months after the effective date of this act, 27 the New York State energy research and development authority, hereinaft- EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD16037-01-6 
 A. 11556 2 1 er NYSERDA, shall issue a request for proposals to identify cities, 2 towns, or villages that are interested in participating in municipal- 3 level energy efficiency and weatherization pilot projects to help 4 decrease residential energy usage and reduce future capital costs for 5 utilities. Energy efficiency and weatherization shall include, but not 6 be limited to: application or installation of weatherstripping, caulk- 7 ing, sealant and other materials around doors, windows, and other areas 8 of a building for the purpose of insulating or sealing openings in the 9 building envelope and within the building to mitigate energy loss; ther- 10 mostat upgrades; roof, chimney, fireplace and roof vent repair, insofar 11 as such repairs are necessary to mitigate energy loss or resolve ener- 12 gy-system related health and safety issues; repair and replacement of 13 storm windows, permanent windows; addition of insulation to exterior 14 walls or ceilings; and other similar projects identified by NYSERDA as 15 promoting residential energy efficiency or weatherization. 16 (b) The goal of the pilot projects shall be to create easily repli- 17 cated large-scale energy efficiency and weatherization projects that can 18 be implemented in urban, suburban, and rural parts of the state that 19 result in savings to utility customers in such areas and help decrease 20 the local utility's projected capital expenses. 21 (c) When reviewing municipal responses to the request for proposal, 22 NYSERDA shall consider: (i) areas of municipalities within disadvantaged 23 communities as defined in article seventy-five of the environmental 24 conservation law; (ii) areas of municipalities with electric grid 25 constraints or a high concentration of leak prone pipes; (iii) areas of 26 municipalities with high concentrations of older residential buildings, 27 and residential buildings with poorly insulated building envelopes; and 28 (iv) the geographic proximity of buildings proposed to be part of the 29 pilot project. 30 2. (a) After reviewing the municipal responses, NYSERDA shall identify 31 three targeted pilot areas, focusing on the ability to replicate 32 projects elsewhere and the costs and benefits to ratepayers both in the 33 affected area and in the rest of the utility service territory. 34 (b) In each of the three identified targeted pilot areas, NYSERDA, in 35 consultation with the city, town, or village, shall: (i) conduct, or 36 have conducted, energy audits, including but not limited to identifying 37 air leaks, examining insulation, inspecting all heating and cooling 38 systems and ductwork, and inspecting electrical wiring and identifying 39 electrical capacity, using existing resources; (ii) outline the scope of 40 work to be conducted based on such audits, and the estimated cost of 41 such projects; (iii) complete, or have completed, such work first using 42 funding from existing weatherization or energy efficiency programs or 43 funding, including but not limited to, EmPower+, funding for green reha- 44 bilitation projects, and programs administered by electric corporations, 45 gas corporations or combination electric and gas corporations; and (iv) 46 in the event that existing funding is not sufficient, request the public 47 service commission to initiate a proceeding to pay for necessary energy 48 efficiency and weatherization costs, not otherwise eligible to be paid 49 for by existing federal or state programs, or programs within the utili- 50 ty service territories of the selected municipalities. 51 (c) Any such proceeding initiated pursuant to this subdivision 52 designed to pay for energy efficiency and weatherization costs not 53 covered by existing programs, shall only authorize the collection of 54 funds in an amount less than or equal to the amount saved by the munici- 55 pal-level energy effective residential weatherization pilot projects 56 resulting from estimated avoided utility capital investments or other 
 A. 11556 3 1 means. When evaluating the NYSERDA request, the public service commis- 2 sion shall ensure that any such request would not negatively impact the 3 safe and reliable operation of the local distribution system and would 4 not result in a net increase in costs to ratepayers. 5 3. The pilot projects shall be subject to the provisions of section 6 224-d of the labor law. 7 4. Following completion of the three pilot projects, NYSERDA shall 8 issue a report to be posted on its website, which shall include an 9 outline of the pilot projects, the outcomes of such projects, including 10 projected energy savings, a cost-benefit analysis of whether increasing 11 the number of residential participants increased beneficial outcomes, 12 and an evaluation related to implementing municipal-level energy effi- 13 ciency residential weatherization projects, as well as recommendations 14 for changes to existing programs, and actions to facilitate future 15 large-scale energy efficiency projects. Such report shall also detail 16 what costs of the pilot projects were covered by programs existing prior 17 to the effective date of this act and what costs were not covered by 18 such programs; and any other information deemed relevant by NYSERDA. 19 § 3. Within one year of the effective date of this act, the public 20 service commission shall initiate a proceeding to conduct a review of 21 the utilization, spending levels, and eligible items covered by existing 22 energy efficiency and weatherization programs available to residential 23 customers. Such review shall be completed within six months and include 24 all programs administered by utility corporations, state agencies, and 25 authorities. In the course of this review, the commission shall evaluate 26 the efficacy and adoption rates of such programs, the three pilot 27 programs enacted by NYSERDA pursuant to section one of this act, and 28 evaluate modifications to such programs to increase adoption rates while 29 balancing ratepayer costs. Additionally, in the course of this review 30 such commission shall evaluate the merits of consolidating utility and 31 state administered energy efficiency and weatherization programs and 32 whether consolidation would result in increased adoption rates. 33 § 4. This act shall take effect immediately.