New York
Incentives/Policies for Renewables & Efficiency
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Last DSIRE Review: 08/18/2009
| Incentive Type: |
Public Benefits Fund |
| State: |
New York |
| Eligible Efficiency Technologies: |
Yes; specific technologies not identified
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| Eligible Renewable/Other Technologies: |
Solar Water Heat,
Solar Space Heat,
Solar Thermal Electric,
Photovoltaics,
Landfill Gas,
Wind,
Biomass,
Hydroelectric,
Geothermal Electric,
Fuel Cells,
CHP/Cogeneration,
Daylighting,
Anaerobic Digestion,
Tidal Energy,
Wave Energy,
Ocean Thermal,
Ethanol,
Methanol,
Biodiesel
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| Applicable Sectors: |
Commercial,
Industrial,
Residential,
Nonprofit,
Schools,
Local Government,
Utility,
State Government,
Fed. Government,
Multi-Family Residential,
Low-Income Residential,
Institutional
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| Types: | Energy efficiency, R&D (includes renewables), low-income assistance |
| Total Fund: | $1.87 billion (1998-2011) |
| Charge: | Each utility must collect a sum equal to 1.42% of its 2004 revenue and submit this sum to NYSERDA annually. The percentage may be adjusted slightly each year based on updated utility revenue. |
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Web Site: |
http://www.dps.state.ny.us/sbc.htm
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Authority 1:
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New York PSC Opinion No. 96-12 (Cases 94-E-0952 et al.)
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| Date Enacted: | 05/20/1996 |
| Date Effective: | 05/20/1996 |
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Authority 2:
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New York PSC Order (Case 94-E-0952)
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| Date Enacted: | 01/26/2001 |
| Date Effective: | 01/26/2001 |
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Authority 3:
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New York PSC Order (Case 05-M-0090)
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| Date Enacted: | 12/21/2005 |
| Date Effective: | 12/21/2005 |
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Summary:
New York's system benefits charge (SBC), established in 1996 by the New York Public Service Commission (PSC), supports energy efficiency, education and outreach, research and development, and low-income energy assistance. To support the SBC program, the state's six investor-owned electric utilities collect funds from customers through a surcharge on customers' bills. Each year from 2006-2011, each utility must collect and remit to the New York State Energy Research and Development Authority (NYSERDA) a sum equal to 1.42% of the utility's 2004 revenue. This percentage may be adjusted slightly each year based on updated utility revenue.
The SBC program is administered by NYSERDA and funds the New York Energy $mart Program and other programs to improve the state's transmission and distribution infrastructure. The program goals include improving system-wide reliability and increasing peak-electricity reductions through end-user efficiency actions; improving energy efficiency and access to energy options for underserved customers; reducing the environmental impacts of energy production and use; and facilitating competition in electricity markets to benefit end-users. Individual program solicitations can be found by visiting the Energy $mart web page, as well as the NYSERDA Current Funding Opportunities web page. Only customers that pay the SBC are eligible for assistance through the programs it funds.*
In December 2005, the PSC extended the SBC for an additional five years -- through June 30, 2011 -- and increased annual funding from approximately $150 million to $175 million. Under this order, of the $896 million (includes expected interest earnings) to be collected during this five-year period, $427 million is allocated to peak load, energy efficiency, and outreach and education; $182 million is allocated to R&D (including renewables); and $190 million is allocated to low-income energy assistance. The balance of fund expenditures will support administration, evaluation and fees. Click here for a copy of the SBC III Operating Plan.
The DPS has the authority to adjust program priorities and to shift funds to address emerging energy challenges. Current budget figures, such as those found in the 2008 Evaluation Report, reflect budget re-allocations as well as significant carryover of unspent funds from earlier years.
Although SBC funds may be used to support renewable-energy infrastructure, the program no longer provides financial incentives for most renewable-energy systems, most of which are instead eligible for funding under the Customer-Sited Tier of the state renewable portfolio standard (RPS). However, SBC funding may be available for technologies that are ineligible for RPS funding, or for efforts that support training, education, or market development of RPS-eligible technologies.
Background
Initial funding totaled $234 million from 1998-2001 for energy-efficiency programs, R&D projects (including renewables), low-income energy assistance (including weatherization), and environmental disclosure activities. In January 2001, funding was expanded to $750 million total through June 30, 2006. A full policy history can be found on the PSC website listed at the top of this page.
*Customers of the Long Island Power Authority (LIPA), the New York Power Authority (NYPA), municipal utilities, and electric cooperatives do not qualify for incentives under this program. The NYPA and LIPA both offer separate energy conservation programs for their customers.
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Contact:
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William Saxonis
New York State Department of Public Service
Agency Building 3, Empire State Plaza
Albany, NY 12223
Phone: (518) 474-5368
E-Mail: william_saxonis@dps.state.ny.us
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