New York Energy $mart^SM Program

New York's public benefit program was established by order of the New York State Public Service Commission (PSC) in January 1998. The first three-year, $175 million program, funded by the System Benefits Charge (SBC), ensured that certain consumer programs and general public policy goals were continued through the State's transition to a competitive electric market. NYSERDA was chosen by the PSC to administer the New York Energy $mart^SM Program.

The initial policy goals of the program were to promote competitive markets for energy efficiency services, and to provide direct benefits to electricity ratepayers and/or to be of clear economic benefit to the people of New York. The New York Energy $mart^SM Program portfolio was designed to meet the diverse needs of the State's energy consumers by stimulating the demand for energy-efficient products and services, and renewable resource technologies.

The SBC and New York Energy $mart^SM Program was renewed in 2001 for a five-year period at a funding level of approximately $150 million annually. Today's New York Energy $mart^SM Program has grown more dynamic, not only continuing to meet consumer interests but expanding to green energy issues as outlined in the State Energy Plan, Governor Pataki's Executive Order 111, and the Renewable Portfolio Standard.

Under NYSERDA's current operating plan, the five-year $750 million SBC II allocation has been specified for the following goals: $436.3 million for energy efficiency programs, including $16.5 million for special consumer education and outreach programs; $113.7 million for low-income energy affordability programs; and nearly $200 million for research and development projects, with a focus on promoting renewable resources, distributed electric generation, and combined heat and power installations.

Programmatically, NYSERDA has sought to address these priority energy issues through four major interest areas: Energy Efficiency; Economic Development; Environmental Enhancement and Protection; and Securing an Energy Future. To date, some 2,700 projects in more than 40 individual programs have been funded by the SBC and made available through the New York Energy $mart^SM Program.

What has the New York Energy $mart Program meant to New York State?

In the last five years, the New York Energy $mart^SM Program has created a wealth of economic and environmental benefits:

• Approximately $198 million in annual energy savings
• 4,200 jobs retained or created
• A leverage of $2.50 in private investment for every New York Energy $mart Program dollar spent
• 1,400 GWh saved per year
• 860 MW in reduced demand
• Fuel savings of 3.3 TBtu
• Annual carbon dioxide reduction equivalent to 200,000 fewer cars
• 1,300 farms benefited from the New York Energy $mart^SM Program
• Significant annual greenhouse gas emission reduction (in tons)
  • Nitrogen oxides (NO_x) – 1,280
  • Sulfur dioxides (SO_x) – 2,320
  • Carbon dioxide (CO₂) – 1,000,000

Because of the successes achieved in lowering energy costs, reducing pollution and helping to create and retain jobs, the New York Energy $mart^SM Program has received national and international recognition. Along with a long list of awards and acknowledgments, including a Local Public Service Announcement Emmy Award, NYSERDA was proud to have been awarded at ENERGY STAR Corporate Commitment Award in 2005 – the first in the nation to a public agency for its ENERGY STAR programs.

Indeed, NYSERDA's innovative programs, as well as its custom-designed analytical and measurement practices, have been used by other states and countries as a model for their emerging public benefit programs. New Yorkers can take great pride in the accomplishments of NYSERDA and the New York Energy $mart^SM Program – helping to secure a brighter energy future for the Empire State for just pennies a day.

On December 21, 2005, the PSC issued an Order (Case 05-M-0900, In the Matter of the System Benefits Charge III, Order Continuing the System Benefits Charge (SBC) and the SBC-funded Public Benefit Programs) continuing the SBC program through June 30, 2011 and increasing the funding level to $175 million per year. The Order provided a thorough Review of comments from stakeholders and presented recommendations for continuing and modifying existing the existing program to more effectively serve the interests of the State. The Order required NYSERDA to prepare a five-year Operating Plan for SBCIII (503kb .pdf), which the NYS Department of Public Service staff approved on March 3, 2006.

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© 2004 New York State Energy Research and Development Authority