Memorandum of Strong Support - S.402-A (Parker) / A.1235-A (Bichotte Hermelyn)
S.402-A (Parker) / A.1235-A (Bichotte Hermelyn) - AN ACT to amend the public authorities law, in relation to creating a revolving loan fund through the New York state energy research and development authority for the purpose of building renewable and energy storage systems scaled to function as microgrids to power housing owned by the New York city housing authority
The Independent Power Producers of New York, Inc. (IPPNY) is New York’s premier trade association dedicated to representing the largest fleet of clean energy generators in New York State and companies involved in: the competitive power supply industry; the development of electric generating facilities; the generation, sale, and marketing of electric power; and natural gas transmission facilities. IPPNY Member companies produce the majority of New York's electricity, utilizing all sources such as: wind, solar, hydro, energy storage, natural gas, low sulfur oil, waste-to-energy, biomass, and nuclear.
IPPNY strongly supports S.402-A (Parker) / A.1235-A (Bichotte Hermelyn). This bill advances the goals of the Climate Leadership and Community Protection Act (CLCPA) by both increasing the use of renewable energy and energy storage and benefiting low-income energy consumers. The legislation fosters the role of New York Power Authority (NYPA) in making these services available to its customer, the New York City Housing Authority (NYCHA), and provides equity and justice to NYCHA tenants that for too long have been without basic services, especially at the risk of their health and safety during the winter. The legislation relies on competitive procurement to provide renewable energy, energy storage, and basic services.
NYPA and the New York State Energy Research and Development Authority (NYSERDA) would cooperate to issue competitive Requests for Proposals (RFP) for private independent power producers to develop renewable energy systems and energy storage for NYCHA, consistent with the State’s policies to implement the CLCPA through the Clean Energy Standard. NYSERDA would establish a revolving loan fund to provide zero percent interest loans to NYCHA for the construction and installation of these systems and storage scaled to function as microgrids for NYCHA. The microgrids would help support increased beneficial electrification.
The legislation also would direct NYPA to expand its efforts to fund the long-overdue restoration of energy services, including but not limited to electricity, heating, ventilation, cooling, steam or hot water, to NYCHA tenants pursuant to energy performance contracts through a competitive procurement process. This provision would restore basic equity that everyone deserves.
Proposals have been made for a Green New Deal for NYCHA, and this bill would accelerate efforts to make that a reality. The New York Green Bank supports the reduction of the risk of investment in low-income multi-family housing, and this legislation is consistent with that approach. The Green Bank is providing a financing pathway for multifamily affordable housing (including loans for clean energy generation) and assisting with electrification. NYCHA, NYPA, NYSERDA, and the Green Bank can work together to find the best way forward to issue RFPs for investment at NYCHA and to have the investment risk reduced by the Green Bank.
For these reasons stated above, IPPNY strongly supports S.402-A (Parker) / A.1235-A (Bichotte-Hermelyn).
