1. New York State System Benefits Charge (SBC) – NGA Center for Best Practices April 29, 2004 Bob Callender Vice President for Programs NYSERDA

2. 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

3. 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

4. Collections and Distributions Total 8 year budget = $932.1 million

5. 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

6. 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

7. 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

8. Four Major Program Areas Business and Institutional Energy Efficiency Residential Energy Affordability Low-Income Energy Affordability Research and Development

9. Business and Institutional Energy Efficiency

10. 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

11. 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

12. 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

13. Residential Energy Affordability

14. 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

15. Low-Income Energy Affordability

16. 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

17. Research and Development

18. 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

19. 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

20. Solicitation & Contracting Process Competitive Solicitations Outreach Efforts Evaluation Process Streamlined Contracting Process

21. 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