Energy Efficiency and Housing Advisory Panel

September 30, 2020Meeting 2

Meeting ProceduresBefore beginning, a few reminders to ensure a smooth discussion:> Panel members should be on mute if not speaking.

> If using phone for audio, please tap the phone mute button.

> If using computer for audio, please click the mute button on the computer screen (1st visual).

> Video is encouraged for Panel members, in particular when speaking.

> In the event of a question or comment, please use the hand raise function (2nd visual). You can get to the hand raise button by clicking the participant panel button (3rd visual). The chair will call on members individually, at which time please unmute.

> If technical problems arise, please contact david.stern@its.ny.gov

Hand Raise

You'll see when your microphone is muted

The Advisory Panel welcomes public comments and questions both during and in between its meetings

> To submit feedback to Panel Members and agency staff during the meeting, members of the public can use the WebEx Q&A function located in the right bottom corner. • Comments and questions submitted through WebEx will be

aggregated and submitted to panel members to be included in deliberations.

> To submit feedback between Advisory Panel meetings, please email eehpanel@nyserda.ny.gov

Procedure for Public Input

Objective: Discuss the Panel’s scope and work plan to present to CAC in October

Agenda:> Discuss Refined Panel Scope

• Qualitative and quantitative assessment criteria

> Review and Input into Work Plan: Monthly overview> Review and Input into Work Plan: Core workstreams

• Subgroups• Public engagement• Cross-panel engagement

> NYS Policy Landscape for Energy Efficiency in Buildings

Meeting Objective and Agenda

Scope

6

EE&H Advisory Panel ScopeThe Panel will focus on inducing the investments in buildings that are needed to help achieve the CLCPA statewide emissions reductions targets, across the below three pillars of deep decarbonization in buildings. The Panel will develop buildings sector-focused recommendations for emission-reducing policies and actions to achieve approximately 31-39%* emission reduction in buildings by 2030 (and 85-93%* emission reduction by 2050), from 2016 levels. (*subject to refinement under new CLCPA accounting framework)

Energy Efficiency and Conservation

Building Electrification andLow Carbon Fuels

Decarbonizing Electricity Supply+ +

• High adoption rates of efficient building shell and weatherization measures

• Behavioral conservation, O&M, and smart devices

• Codes and standards improve efficiencies of new appliances

• Cross-panel work on codes

• Electrification of space heating (e.g., cold climate air source heat pumps, ground source heat pumps)

• Electrification of domestic hot water

• Cross-panel work on Bioenergy

• Flexible building loads improves grid management

• Cross-panel work with Power Generation, as zero-emissions electricity reduces indirect emissions of electrified heat and hot water

DRAFT

Cross-cutting consideration of embodied carbon and climate adaptation and resilience

7

The Panel will work to define the priority policies to induce investments in building efficiency and electrification at scale and present a list of recommendations for policies, programs, or actions, for consideration by the Climate Action Council for inclusion in the Scoping Plan. Recommendations will:• Address policies regarding new construction and retrofits for single family housing, multifamily housing and

commercial and institutional buildings• Consider impacts to property owners, building operators, tenants, and disadvantaged communities, including

with respect to cost-benefit, affordability, health, comfort, and productivity• Identify measures to make low-carbon projects cheaper and cost competitive• Quantitatively or qualitatively assess the number of buildings impacted by building type and associated

emissions reduction, public health benefits, economic benefits, and known implementation costs• Describe the implementation strategy, with attention to feasibility and commercial availability• Reflect external input as well as collaboration with: Power Generation, Land Use and Local Government,

Agriculture/Forestry, Just Transition Working Group, Climate Justice Working Group and EJ Advisory Group

EE&H Advisory Panel Scope (cont’d) DRAFT

Work Plan

9

Oct. 2020 Nov. 2020 Dec. 2020 Jan. 2021 Feb. 2021 Mar. 2021

Milestones Finalized Work Plan

Develop Recommendations

and Policies

Briefing for CAC and CJWG on

priority policies/ strategies

Public forum on strategies under

considerationContinue Review of Recommendations

Final Recommendations to

CAC

EE&H Panel Outcomes

• Level set on barriers, challenges

• Share and digest foundational resources

• Discuss high-potential mitigation strategies

• Identify needs for additional analysis, expert consultation, and cross-panel collaboration

• Identify priority policy actions

• Begin evaluation of actions based on assessment criteria

• First draft of high priority mitigation strategies and detailed actions for CAC consideration and CJWG review

• Report out on cross-sector collaboration

• Incorporate CAC and public feedback

• Report out on cross-sector collaboration

• Assess and finalize mitigation strategies and detailed actions

• Describe implementation requirements of actions

• Finalize recommendations to advance to CAC

• Complete recommendations template for each

Cross-panel collaboration

Identify topics for cross-sector collaboration

Seek input on policies/ strategies from CJWG & EJAB.

Workshop key topics with Power Gen.

Seek input on priority policies/ strategies under consideration

Briefings of Council

Present Work Plan; Review and align on criteria

Seek input on high potential policies/strategies and progress

towards Recommendations

Seek input from Council on progress

Present Recommendations

> Panel Subgroups• Advance development of recommendations specific to (1) single family housing, (2) multifamily

housing, and (3) commercial and institutional buildings• Identify relevant research, case studies, and expert consultation that can inform recommendations and

analysis

> Public Engagement• Review and aggregate public comments, distribute to appropriate subgroup to incorporate into work• Engage with outside experts: subgroups will bring in experts and input for each subsector• Welcome input/suggestions on technology, policies via EEHPanel@nyserda.ny.gov

- More engagement opportunities to come

> Cross-Panel Coordination• Identify one volunteer from the EE&H Panel to work with the Land Use and Local Government

Panel on resilience and adaption strategies• Identify specific subjects/topics/recommendations requiring cross-Panel collaboration

Discussion of Workstreams

Each subgroup should meet the week of October 5, with findings to be discussed as a group at the October Advisory Panel meeting.> Subgroups should address the following topics in October:

• "Level-setting" on state of the subsector, existing research, and potential case studies:- What are high-potential mitigation strategies? What are key challenges and barriers?- What foundational work is in hand or in progress that can be shared for the Panel to leverage?- Identify knowledge gaps, or work that is being done that we don’t yet have access to- What are promising strategies from NY or other jurisdictions?- What are the current experiences with implementing technologies or policies under panel consideration?- Identify specific topics for cross-panel engagement

• Develop strategies for additional engagement:- What topics might require us to consult with outside experts? Who might these experts be?- How should we organize engagement to gain input from key stakeholders (e.g., solution providers, building owners/consumers,

advocates and experts)

• Initial thoughts on policies, strategies, and actions – to be developed further in November.

Panel Subgroups: Near-term Expectations

Panel SubgroupsResidential: Single Family Residential: Multifamily Commercial & Institutional

Panel Members:• Daphany Rose Sanchez• Jamal Lewis• Sadie McKeown• Bill Nowak• Janet Joseph

Staff Members: Rachel Wieder*, Caitlin Norton, Kevin Manz, Emily Dean, Kevin Duerr-Clark, Simon McDonnell, Melina Stratos

*Staff lead for subgroup

Panel Members:• Daphany Rose Sanchez• Bret Garwood• Jamal Lewis• Sadie McKeown• Jin Jin Huang• Bill Nowak• Peggie Neville

Staff Members: Kelly Richardson*, Todd Crawford, Jodi Smits Anderson, Vanessa Ulmer, John Addario, Simon McDonnell, Melina Stratos, Heather Spitzberg

Panel Members:• Molly Dee-Ramasamy• Laura Vulaj• Gina Bocra• Jin Jin Huang• Dan Egan• Bill Nowak

Staff Members: John Lee*, Leslie Green, Vanessa Ulmer, Todd Crawford, John Raudenbush, Grace Woodard, Emma Gonzalez-Laders, Kevin Manz, Mike Cronin

New York Policy Landscape

New York State Clean Energy GoalsClimate Leadership and Community Protection Act (CLCPA)

35% - 40% of the benefits of state CLCPA investmentsmust flow to disadvantaged communities

14

2025 Statewide Energy Efficiency Target

15

> Enable market-based energy efficiency (EE) and building decarbonization> Accelerated and better coordinated energy efficiency programs> Drive deeper efficiency and greenhouse gas (GHG) emissions reductions in buildings> NYS Clean Heat – statewide support for building electrification> Statewide Low-and Moderate-Income (LMI) Portfolio> Build a skilled workforce> Lead by example in State buildings

> Broad-based impact via building codes and appliance standards

New Efficiency: New York Strategies

16

Acceleration and innovation in the portfolio of utility energy efficiency programs> Public Service Commission action (January 2020) more than doubles energy

savings goal across investor-owned utilities through 2025, relative to historic targets• $3.2 billion investment in energy efficiency and heat pump programs, across

incremental and reauthorized funding from 2020 to 2025• At least 20% of incremental electric and gas efficiency funding allocated to LMI

programs> Long Island Power Authority (LIPA) commits $500 million to energy efficiency

and heat pump programs from 2020 to 2025> Coordination of customer incentives and market development support among

the utilities and NYSERDA

Accelerated EE Programs

17

NYSERDA develops markets, supports innovation, and provides financing> Market development initiatives to enable the delivery of energy efficiency

and clean energy solutions, with a strong focus on decarbonizing buildings• Financial support, technical knowledge, data, education, and workforce training to

serve providers and customers• $1.2 billion investment from 2020 to 2025, with largest share of funds to initiatives

that benefit LMI households> Develop and demonstrate innovative technologies and strategies to

achieve deep energy savings and building electrification> Expand financing for energy efficiency market participants

NYSERDA’s Clean Energy Fund

18

NYS Clean Heat: Statewide Heat Pump Program> NYS Public Service Commission directive provides commitment through 2025

and statewide consistency> Coordinated investments to support 100,000+ homes and businesses to adopt

energy efficient heat pumps through 2025, and position the market for accelerated growth going forward• $454 million program for customer incentives administered by the investor-owned

utilities (2020-2025)• Additional LIPA incentive program for customers on Long Island• Additional $230 million in market development support from NYSERDA

Support for Building Electrification

19

Benefits for LMI Households

20

Statewide Low- and Moderate-Income PortfolioFramework to invest almost $1 billion through 2025 to advance energy efficiency for LMI households, including:

• To increase access to energy efficiency for LMI homeowners and renters

• To improve energy efficiency in affordable multifamily buildings

• For community-level engagement and capacity building with community-based organizations

• For developing clean heating and cooling solutions

More than doubling the current number of households that receive energy efficiency services

21

NYS HCR: An Overview• Includes one of the largest housing finance agencies

in the country• Oversees multifamily housing assets in every county

of NY State• More than 100,000 Project-Based and 45,000

Tenant-Based Section 8 Vouchers administered in 46 counties

• 27,000 Active SONYMA Mortgages.• HCR administers the largest rent regulation system

in the country• Community Renewal: leading the state’s investments

in community development and downtown revitalization

• Runs the largest residential energy conservation program in the country

22

NYS HCR: An OverviewSingle Family Multi-Family Rent

Regulatory Functions

• Provide mortgage financing for low-income and first-time homebuyers

• SONYMA Mortgage Assistance: Down payment assistance offered w/ waived .375% increase in interest rate when buying Energy Star Certified home

• WAP - Reduce energy/utility costs installing energy efficiency measures

• Preservation and construction of privately-owned affordable multifamily rental housing

• Climate Bond Initiative - Largest issuer of Climate Bonds in the world – nearly $2 billion in bonds issued

• WAP - Reduce energy/utility costs installing energy efficiency measures

• P+ Initiative: Targets certain HCR portfolios to fund deeper, more comprehensive energy retrofits than traditional WAP projects

• Design Guidelines Green Updates: New construction/substantial rehabilitation – 9% LIHTC energy requirements

• ~45k privately owned buildings and ~1 million rent stabilized/controlled units in NYC & surrounding counties

• These privately owned properties are subject to local municipal laws (including NYC LLs)

Accelerating energy efficiency in State facilities and construction to save energy, prove value, and catalyze market adoption of the best solutions> State agencies and authorities have an 11 TBtu energy savings target through 2025 –

supported and tracked under NYPA’s BuildSmart 2025 initiative> 19% of the goal has been achieved through NYPA-financed projects alone> Key strategies:

• Undertake and act on energy audits and energy master planning• Smart sequencing – upgrade building shell prior to the HVAC system• Statewide LED lighting retrofits• Intelligent building solutions• Annual benchmarking and disclosure for State buildings• Advance net-zero new construction in State buildings

Lead by Example in State Buildings

23

Building energy codes allow New York to harness market activity and the natural cycle of building upgrades to drive energy efficiency and carbon reduction> Above code programs such as NYStretch 2020 energy code> NYS Energy code training and resources for building practitioners and code

officials offered by DOS and NYSERDA

Advancement of new efficiency standards for products and appliances is another key policy lever to improve efficiency and emission reduction

Energy Codes and Standards

24

NYC Policy Landscape

NYC Buildings Emissions LawNew York City’s commitment to GHG reduction goals: 40 x 30 and 80 x 50

Local Law 97 in the Climate Mobilization Act (April 2019)> Sets carbon caps for energy use in NYC’s large buildings

(>25,000 square feet) from 2024> Covers nearly 60 percent of the city’s building area (>3 billion

square feet)> Carbon-intensive buildings will require comprehensive retrofits

or alternate compliance (renewable energy credits, emissions offsets)

> Alternate path of low-cost energy-savings measures for affordable housing and houses of worship

Other key policies> NYC adopted portions of the NYStretch Energy Code 2020> Benchmarking (LL84/133) and Energy Efficiency Grading (LL95)> Energy Audits and Retro-Commissioning (LL87)

SUPPORT FOR

BUILDINGS

• Low-interest loans available through a new PACE program

• Outreach, training, and technical assistance

• NYC Retrofit Accelerator & Community Retrofit NYC

• Utility and NYSERDA initiatives

Panel Discussion of Policy Landscape

Next Steps

> Any additional input on Work Plan requested by noon on Friday, October 2• Will be provided to the CAC on October 5

> Subgroups meet week of October 5> Panel members asked to share foundational & informational materials, via

SharePoint site and subgroups

Next Steps