2011 Annual Report - New York State Energy Research and Development Authority
New York State’s
Innovation Economy
Cleantech Thrives in New York
NYSERDA supported the Empire State Building’s
energy efficiency efforts, saving this iconic landmark
$4.4 million dollars in energy costs annually.
The Empire State Building image ® is a registered
trademark of ESBC and is used with permission.
Table of Contents
Letter from the Governor 1
Message from the President 2
Message from the Chairman of the Board 2
Cleantech Thrives in New York 3
Innovation Ecosystem: Creating 7
a Business-Friendly, Cleantech State
Cleantech Workforce Development 16
and Training Flourishes
Driving Demand for Energy Efficiency 20
Outreach and Education 31
NYSERDA Facts 34
Financial Statements 41
NYSERDA Board Members Joan McDonald
Commissioner
Vincent A. DeIorio, Esq. New York State Department of Transportation
NYSERDA Chairman Elizabeth W. Thorndike, Ph.D.
The DeIorio Law Firm, LLP Founder
George F. Akel, Jr. Center for Environmental Information, Inc.
President Michael J. Townsend
Akel Wholesale Grocery, Inc. Chairman
Garry A. Brown New York Power Authority
Chairman Mark A. Willis
Public Service Commission Resident Research Fellow
Kevin Burke NYU, Furman Center
Chairman and CEO
Consolidated Edison Company of New York
Robert B. Catell
Chairman
Advanced Energy Research and Technology Center (AERTC)
David D. Elliman
Chairman
Elmrock Capital, Inc.
Joseph Martens
Commissioner
New York State Department
of Environmental Conservation
MofetshseaSgteatferoomf NtheewGYoovrekrnor
Dear New Yorker,
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families in New York State
NrSeTYcAoSgREn®RitSiDouAns,’tsamsinouesctdcreEescsxeecnsetlillnyenptchreoromAuowgthainrtgdh.eaTnUhd.asStu.ipsEpsnoovrmitrieontnghmiennegenrtthgaalytPearfloflitcNeiceetnwiocnyYAhoargkveeenrgcsaycr’asnne2r0be1ed1pnEraoNtuioEdnRoafGl. Y
AansdwbeucsionnetsisneuseftuortmheorveretdouwcaerdenaenrgeywcNosetws aYnodrkd,evNeYloSpEcRleDanA, will continue to help residents
renewable energy solutions
for our future.
Sincerely,
Andrew M. Cuomo
Governor of the State of New York
NYSERDA Senior Staff
Francis J. Murray, Jr. Hal Brodie Thomas Lynch
President and CEO General Counsel Director of External Affairs
Robert G. Callender Paul J. Bembia Donald G. LaVada
Vice President for Operations Director of West Valley Site Management Director of Consumer Services
and Energy Services and Events Management
Jeffrey J. Pitkin Susan B. Moyer
Thomas R. Barone Treasurer and Internal Control Officer Director of Marketing and
Director of Energy Efficiency Services Economic Development
Stanley Brownell Bruce A. Cabana Katherine Muller
Facility Manager Information Security Officer Director of Communications
Michael T. Colgrove Cheryl L. Earley
Director of the New York City Office Director of Contract Management
Karen Hamilton Peter V. Mahar
Director of Residential Energy Controller and Assistant Treasurer
Services Program Mark B. Mitchell
Director of Internal Audit
Janet Joseph David M. Young
Vice President for Technology Chief Information Officer and
and Strategic Planning Director of Information Technology
Peter W. Douglas
Director of End-Use Application and
Innovation Department
Mark R. Torpey
Director of Clean Energy Research
and Market Development
John G. Williams
Director of Energy Analysis
1
Message from the President Message from
the Chairman
Energy efficiency remains the most cost-effective and environmentally sound strategy for of the Board
addressing New York’s energy, environmental, and economic development goals. Indeed,
capturing the full benefits of energy efficiency is a national, even global, challenge—one Governor Andrew Cuomo has called
that New York State is meeting every day through its investment in research, development, upon policy makers and business and
and innovation. industry leaders to make New York State
first in successful energy initiatives.
Governor Cuomo has emphasized the important role that innovation will play in fostering In just the past year, NYSERDA has
new investment, economic development, and job creation in New York. NYSERDA is responded with new programs that
supporting the Governor’s call for investment in innovation in many different ways: by help create jobs in renewable energy
helping New York businesses become more competitive through investment in energy- and Cleantech industries, while also
efficient equipment and industrial processes; by working in collaboration with New York making New York State a leader in
companies and research institutions to develop new energy technologies; by assisting environmental stewardship.
homeowners, businesses, and industries to make informed and economic choices;
by educating the general public and decision makers about the latest clean energy NYSERDA is in a unique position to help all
technologies and services; and by supporting training and workforce development New Yorkers participate in and achieve the
for the cleantech economy. State’s energy goals by clearly identifying
our energy problems and providing
Through partnerships with state and local governments, academia, and public creative and doable solutions. Staffed with
and private sector businesses, we provide credible energy-related information and dedicated, experienced, and responsive
financial support that organizations need to make critical energy planning and policy experts, NYSERDA helps homeowners,
decisions. This collaboration enables us to provide incentives for the development and communities, and the public and private
implementation of new technologies, ensuring our State’s leadership in energy efficiency sectors, make informed decisions for
while also providing high-tech, clean energy jobs. investing in energy-efficient technologies
and provides the financial support to
NYSERDA’s cleantech programs provide the tools that can transform a breakthrough encourage and assist them in making
invention into a viable new business. Cleantech programs can also be used to expand these important investments.
existing businesses and attract new investment in clean energy technology businesses
across New York State. By providing professional expertise, creative approaches to The current projects and programs
problem-solving, and unique funding resources, our goal is to be a catalyst for change outlined in this Annual Report reflect
and greater opportunity. Working with our colleagues in State government and our our dedication to continued and
partners in business and academia, and under the Governor’s leadership, the future of the exciting new research, to educating our
cleantech economy in New York is indeed bright. NYSERDA is committed to this vision. constituents about the latest energy-
efficiency information and technologies,
Francis J. Murray, Jr. to funding opportunities for sustainable
President & CEO change, and to supporting innovative
NYSERDA training programs for new and long-term
careers in the energy efficiency and
renewable energy fields.
Vincent A. Delorio, Esq.
NYSERDA Chairman
The Delorio Law Firm, LLP
2
Cleantech Thrives
in New York
3
Did You Know that New York:
• i s 2nd on the East Coast and 4th in the nation in clean energy leadership, based on more than
70 indicators addressing clean electricity, clean transportation, green buildings, clean energy
policy, and financial and human capital for cleantech (Source: Clean Edge)
• is 2nd in the nation in clean economy jobs (Source: Battelle/Brookings)
• is 3rd in the nation in clean energy patents (Source: Clean Energy Patent Growth Index)
• uses less energy per dollar of Gross State Product than any state in the nation
(Source: U.S. Energy Information Administration (EIA))
• uses less energy per capita than any state in the nation (Source: EIA)
Cleantech Thrives in New York demonstrations to move toward commercialization. As
a result, more than 200 products have moved to market
The state is making progress in building the ecosystem over the past 15 years. At the same time, we support
to nurture clean energy companies. Companies are New York’s cleantech economy by driving demand –
moving here, starting here and growing here, ultimately encouraging residents and businesses to choose energy
building a critical mass that attracts others. efficient and renewable technologies today and to
develop clean energy habits for a lifetime.
NYSERDA has invested $139 million by providing
financial assistance to 362 different clean energy During the 2010-2011 fiscal year, we worked with more
businesses. NYSERDA is a catalyst for the development than 180 private and public sector partners in product
of new technologies throughout all links of the Energy and business development efforts to advance energy
Innovation Chain – which begins with scientific innovation and technology in ways that improve New
research and market analysis and includes technology York’s economy and environment. At the same time, we
development and demonstration, business and market rolled out a number of new initiatives to help New Yorkers
development, market adoption and expansion, and choose to save energy in their daily lives. One initiative,
ultimately, standard practice. made possible as a result of the Green Jobs – Green NY
Legislation, enables NYSERDA to offer free and reduced-
We share the risk with early-stage companies, help cost energy audits and help a broad range of New
innovative ideas attract venture capital and give Yorkers reduce their energy costs.
promising businesses opportunities for pilots and
Energy Innovation Chain
Technology Business and Market Standard Practice
Development and Development
Demonstration
Scientific Research Market Adoption
and Market Analysis and Expansion
4
The year was one of great progress for NYSERDA NYSERDA Gets National Recognition
on many fronts. We consolidated, streamlined and
relaunched several programs to be increasingly NYSERDA has long been recognized nationally as
efficient, effective, and accountable. We made inroads a leader in energy efficiency, and 2010-2011 was
in market transformation, working with partners on the no exception. In April 2010, the U.S. Environmental
supply side, the delivery side, and the consumer side to Protection Agency recognized NYSERDA with the
broaden thinking about energy efficiency. We increased 2010 ENERGY STAR® Leadership in Housing Award,
emphasis on making sure that all NYSERDA projects and the ENERGY STAR Sustained Excellence Award.
are completed to high standards of quality and are In September 2010, New York was named a leading
taking a closer look at what we need to do to take our state for energy efficiency by the Center for American
promise to the customer to the next level. Progress, and NYSERDA’s energy efficiency and
combined heat and power programs received national
Economic benefits from our two main sources of recognition from the American Council for an Energy
funding – the System Benefits Charge (SBC) and the Efficient Economy.
Energy Efficiency Portfolio Standard (EEPS) –
reached significant milestones: In December 2010, NYSERDA won a special award
from the American Council for an Energy Efficient
• O ur programs led to more than $3.7 billion Economy for leadership in innovative ideas and research
dollars in cumulative energy bill savings. and development of energy efficiency concepts and
technologies. In February 2011, NYSERDA became the
• F or every $1 in SBC and EEPS funds spent, first government agency to be inducted into the Alliance
almost $2.5 in energy bill savings has been to Save Energy’s Energy Efficiency Hall of Fame.
realized by participating customers.
• T his all took place while adding approximately
zero net cost to non-participants due to the
price-lowering effect of the reduced energy
use on wholesale electric prices.
NYSERDA’s energy efficiency programs help protect Francis J. Murray, Jr. accepts a national award from the
New York’s environment. For example, the energy saved American Council for an Energy Efficient Economy (ACEEE).
in 2010 via SBC- and EEPS-funded efficiency projects
would have resulted in the emission of 2,130 tons of NOx,
4,180 tons of SO2, and 2.2 million tons of CO2. This
is the equivalent of taking 445,000 cars off our streets
during the year. The energy efficiency improvements
made through these programs last for many years,
so the benefits will continue for years to come.
5
Actions taken this year set up New York for an even brighter future. Going forward,
NYSERDA will be measuring our success against the following metrics.
Efficient Use of Energy Diverse/Renewable Energy Clean Energy Economy A Cleaner Environment Satisfied Customers
Electricity (MWh) saved
due to improved energy Electricity (MWh) produced Impacts of product Emission reductions due Contract processing time
efficiency in New York’s from renewable sources development activities: to NYSERDA’s energy (median time to process):
buildings and facilities efficiency, renewable, and
Fossil fuels (MMBtu) saved Number of operating 1) A nnual product sales diverse energy programs: 1) Contracts awarded from
due to improved energy renewable resource solicitations
efficiency in New York’s installations 2) N umber of products in 1) CO2 equivalent emission
buildings and facilities the market as a result of reductions (annual tons) 2) O pen enrollment incentives
Number of New York Electricity (kWh) produced previous technology and
households served from combined heat and business development 2) N OX emission reductions 3) Direct contracts
Number of commercial and power (CHP) sources investment (annual tons)
industrial customers served 4) M odifications/task order
Energy bill savings: Number of operating 3) C hange in GSP as a 3) S O2 emission reductions
1) D ollars in energy bill CHP installations result of R&D product (annual tons) Invoice payment:
development, expressed
savings realized by Petroleum displacement as a ratio of GSP Energy–related 1) N umber of invoices paid
participating customers (gallons) in transportation impact to NYSERDA environmental policies within 30 days
2) R atio of energy bill sector investment in R&D informed by NYSERDA
savings realized by product development reports/studies 2) P ercent of payments
participating customers Number of jobs created or made within 30 days
per energy-efficiency retained as a result of net 4) Number of jobs created
dollar spent by NYSERDA macroeconomic activity or retained as a result
Number of jobs created or stimulated by NYSERDA’s of net macroeconomic
retained as a result of net renewable energy activities activity stimulated
macroeconomic activity by R&D product
stimulated by NYSERDA’s development activities
energy efficiency activities
5) Number of new energy-
6 efficiency and renewable
energy products in
development
Funding leveraged by
NYSERDA’s investment
Dollars invested by
NYSERDA in business
development activities
Number of clean energy
businesses receiving
financial assistance
Number of patents, UL
listing certifications, license
agreements, copyrights
and other knowledge
certifications
Number of workers trained
in clean energy sectors
Innovation Ecosystem:
Creating a Business-Friendly,
Cleantech State
7
In New York and around the world, we are challenged Our incubators are located in Brooklyn, Stony Brook,
to help transform the way we produce and use energy, Albany, Syracuse, Rochester and Buffalo, and NYSERDA
and New York is taking a leadership role by encouraging is expecting to invest a total of $1.5 million in each
and creating an innovative business ecosystem to help incubator through 2015.
cleantech thrive here.
Since the start of the program in July 2009, NYSERDA has
A business ecosystem is a loose network of suppliers, provided approximately $2.7 million to six Clean Energy
distributors, outsourcing firms, makers of related Business Incubators statewide. The services, mentorship
products or services, technology providers, and a host and programming made possible by this support have
of other organizations. By investing in companies that helped startup companies in these incubators to raise
are making products for a cleantech future, NYSERDA is $25.8 million in private investment capital and garner an
helping to build an ecosystem of energy innovation – and additional $10.1 million in federal funding.
helping to grow New York’s economy in the process.
Filling the Gap Between Incubator Sites in New York State
Idea and Product
Getting a good idea for an innovative new product
is often the way successful businesses begin, but it
is a long road between concept and production. As
NYSERDA’s role in promoting the clean-energy business
community has matured, we have taken a greater role in
helping young companies move through the early stages
of development, by providing funding, expertise, and
perhaps most importantly, connecting business owners
with others who can help a young business succeed.
For the earliest stages of a new company, NYSERDA has
funded six incubators that provide physical space, expert
mentoring, and other support to early-stage businesses.
8
Our incubators work with a total of 72 companies, which have brought more
than 20 products to market in the past year.
2010-2011 Incubator Highlights: To assist companies that are beyond the “incubator”
concept, NYSERDA began two new programs this
• A t the New York City Accelerator for a Clean and year. The Entrepreneur-in-Residence Program links
Renewable Economy (NYC ACRE), four companies— a seasoned entrepreneur with up-and-coming tech
ThinkEco, Ecologic Solutions, Wind Products Inc. and companies to provide mentoring and coaching. The
Ecological—“graduated” this year, moving to larger Cleantech Execs Program offers a short, MBA-level
space within New York State. curriculum to seasoned executives seeking to have their
businesses enter the clean-energy marketplace.
• N YSERDA’s Syracuse Incubator at The Tech Garden
helped attract U.S. headquarters for two international In addition, NYSERDA has worked this year to expand
companies—ProTerra LED, a Canadian company its connection to venture capitalists (VCs) beyond
specializing in solid-state lighting, and SunEnergy New York State, as well as to grow the knowledge in the
Europe, a German company that specializes in venture capital world about the cleantech environment
photovoltaic installation. here and the many programs available to help fledgling
businesses grow. In doing this, we increase opportunities
• i CLEAN, an incubator at the University at Albany’s to bring entrepreneurs and VCs together for investment in
College of Nanoscale Science and Engineering, New York-based businesses.
attracted Group4 Labs, a manufacturer of high-tech
computer wafers from California’s Silicon Valley. The
company will operate in both Albany and Syracuse and
has the potential to grow hundreds of jobs in the state.
9
Helping Grow
New York’s Renewable
Energy Options
The future of energy innovation is happening right here
in New York State, and NYSERDA is at the forefront.
NYSERDA has contributed funds to encourage large
wind farms and small wind turbines at private homes.
We have invested in million-dollar combined heat and
power projects, which use natural gas or other fuels
to create power and heat that is reused, resulting in
far more efficiency and taking pressure off the grid.
Through solar incentives and support for accredited
training programs for PV system installation, we have
developed a solar market with 242 trained installers
(up 30 percent from the previous year) and now have
photovoltaic systems across New York State that are
producing 30,000 megawatt hours of electricity. And we
have partnered with dozens of companies working on
high-tech solutions to today’s energy needs.
In all cases, these NYSERDA investments leverage
private funds, driving the state’s clean-energy economy
and creating jobs, reducing our greenhouse gas
emissions, and leading to a cleaner future.
10
All of our partnerships are important, but a few stand out this year.
In May, NYSERDA signed a $2 million contract with million in incentives, which leveraged another $68 million
Beacon Power Corp. to support construction of an in private investment for a variety of combined heat
energy-storage plant in Stephentown that will provide and power plants. Combined heat and power facilities
more stable, reliable and efficient electric grid operation. generate electricity on-site as well as make use of the
Beacon’s 20 MW flywheel energy storage plant is heat created by burning natural gas or other fuels,
designed to balance power demands by absorbing creating a far more efficient source of power. In 2010-
electricity from the grid when there is too much, 2011, the CHP program funded 26 different projects
and storing it as kinetic energy in a matrix of flywheel for industrial or other uses.
systems. When there is not enough power to meet
demand, the flywheels inject energy back into the grid, NYSERDA provided $5 million in seed money to the
thus helping to maintain reliability. U.S. Photovoltaic Manufacturing Consortium (PVMC)
at SUNY Albany’s College of Nanoscale Science and
NYSERDA has also been working with Ioxus Inc., an Engineering. PVMC is an industry-driven research and
Oneonta-based company that created ultracapacitors, development initiative to accelerate the development,
which are electrical storage devices that can store manufacturing, and commercialization of next-
energy for a short time to help extend the life of batteries. generation copper indium gallium selenide (CIGS) thin
NYSERDA provided $1.5 million in funding to Ioxus last film PV manufacturing technologies. Part of the U.S.
year, and the company has seen so much growth that it Department of Energy’s $110 million SunShot program,
recently moved into a new, larger headquarters. the consortium will establish manufacturing development
facilities that PV companies and researchers can use
Another ongoing program helps grow the number of for product prototyping, demonstration, and pilot-scale
combined heat and power (CHP) projects in the state, manufacturing to evaluate and validate CIGS thin film and
especially in New York City. NYSERDA invested $20 PV manufacturing technologies.
Beacon Power Corp.’s energy-storage
plant in Stephentown
11
NYSERDA is also looking for ways to increase the In addition to these large-scale projects, NYSERDA
amount of clean energy added to the grid. In January, makes it more affordable for consumers to generate
NYSERDA and the state Public Service Commission their own power from wind, solar, and other renewable
announced that $250 million from the renewable portfolio energy sources, so they can reduce their electric bills
standard (RPS) would be available for large-scale while promoting clean energy. This also helps sustain
renewable energy projects using wind, hydroelectric, the infrastructure of distributors, installers and other
biomass, or other clean-energy resources. renewable energy companies, strengthening New York’s
cleantech economy and providing opportunities for
Before this solicitation, the RPS had funded 39 large- job creation.
scale renewable electricity generators that are expected
to produce enough electricity to provide 3.9 million Since its inception, the RPS has proven to be an
megawatt-hours of renewable energy per year. These exceptional value for clean energy in New York State.
include three biomass facilities, one landfill biogas Approximately 39% of NYSERDA’s RPS target is under
operation, 21 hydroelectric upgrades, and 14 wind farms. contract with 29% of the total RPS budget, stretching
each dollar as far as it will go.
12
SUCCESS STORY
Wind Turbine Program Saves Monthly Electric Costs
Frank Kunnumpurath’s electric bill used to run between
$400 and $500 a month. The 46-year-old LaFayette
resident, who lives on a hilltop home with his wife, two
children and a variety of wild fowl, uses electricity for hot
water, cooking, power needs, and to run his geothermal
system. Located about a half-hour from Syracuse, his
homestead routinely sees winds faster than forecast for the
region. Kunnumpurath applied for, and received, funding
under NYSERDA’s popular Customer-Sited Wind Turbine
Incentive Program. Since 2008, NYSERDA’s wind incentives
have provided 61 consumers with funding totaling $1.8
million. Kunnumpurath was awarded a $27,000 incentive,
enough to fund more than a third of the turbine cost. In
July 2010, he hired a contractor to install a 10-kilowatt,
100-foot-high unit. “NYSERDA’s incentive made it possible
to do this,” he said. “And it pays off.” In October, NYSERDA
launched yet another round of funding, which so far has
attracted nearly 25 applications.
13
Aerial view of Saratoga Technology +
Energy Park® (STEP®)
Promoting Clean-Energy and maintenance, and clean-room operations skills.
Businesses and Jobs at STEP® TEC-SMART is also used to introduce K-12 students to
the increasing high-tech jobs available in New York.
Saratoga Technology + Energy Park® (STEP®), located
in Malta next to the soon-to-open GLOBALFOUNDRIES Learning from Nature
Fab 8 facility, was created in 2001 to attract clean-energy
and environmental companies. Today, STEP is home Taking advantage of nature through renewable energy is
to 12 business partners. This year, the park passed a one thing; learning from nature is another. Biomimicry is
milestone when it reached more than 300 employees defined as intentionally looking to nature for inspiration
and began planning construction of its fourth building – for manmade products. For example: the lotus flower
a 90,000-square-foot space for offices and light has inspired non-toxic stain guards, a shark’s fin inspired
industrial use. a low-friction racing swimsuit, and a termite mound in
Africa inspired the creation of a massive shopping center
In April, 2010, Hudson Valley Community College opened and office building that uses complex air channels to stay
its Training and Education Center for Semiconductor cool in the heat without air conditioning.
Manufacturing and Alternative and Renewable
Technologies (TEC-SMART) facility at the STEP campus. This year, NYSERDA began promoting biomimicry
The $13.5 million teaching facility and meeting space through a two-year program that allows New York State
is used to teach college students such skills as solar manufacturers to participate in free workshops and
electric system installation, wind turbine installation consulting on the subject. We are working with Terrapin
Bright Green, a leading environmental consultancy,
and the Biomimicry Guild, which links biologists with
companies developing new products. By investigating
natural solutions to new manufacturing problems,
biomimicry may present new opportunities for
clean-energy innovations.
14
Partnering for Power In March, NYSERDA invested $1 million in NYSEG,
a member of the Smart Grid Consortium, for the
NY-BEST engineering design of a compressed-air energy storage
facility near Watkins Glen. The facility would pump air into
The New York Battery and Energy Storage Technology a sealed salt cavern, and the release of that compressed
(NY-BEST) consortium was established in 2010 to air would generate electricity, allowing for the storage of
maximize the state’s academic and scientific resources energy created by renewable sources during times of
and help technology move from lab to market. low demand.
Membership has grown to more than 70 companies,
universities, federal labs, and end-users. Transportation
In 2010, NY-BEST awarded $8 million to 27 projects The transportation sector is responsible for about
related to energy storage. That funding leveraged three-fourths of the state’s petroleum consumption, and
an additional $7 million in additional funds from 40 percent of greenhouse gas emissions in the state.
other sources. NYSERDA has partnered with dozens of companies
around the state, working on ways to reduce the
Smart Grid Consortium environmental impact of transportation around New York.
The New York State Smart Grid Consortium is a We have funded dozens of clean-energy transportation
partnership of New York utilities, universities, industry, projects, ranging from a company from Brooklyn making
and government working to develop a smart energy electric motorcycles to a business in Rochester making
grid. The consortium promotes technologies that better insulation for refrigerated trucks. This year,
improve system reliability, security, and efficiency while NYSERDA funds coupled with dollars from the New York
encouraging clean-energy power and conservation. State Department of Transportation, helped to create
Improving electric system efficiency helps reduce more efficient truck inspection stations in the Capital
environmental impacts and avoid price increases Region, cleaner diesel engines in Syracuse, and a more
associated with aging infrastructure. aerodynamic truck trailer in Potsdam.
Aerodynamic truck at
Clarkson University, Potsdam
15
Cleantech Workforce
Development and Training
Flourishes
16
Workforce development and training is the foundation for a successful
cleantech economy.
Expanding Training Infrastructure
NYSERDA’s workforce training initiatives grew significantly during 2010, as we trained the largest number of people
of any year to date. We expanded the cleantech training infrastructure across the state and equipped 6,144 New
Yorkers with the skills required to advance in their careers or enter new jobs in the energy efficiency and renewable
energy sectors.
Workforce Development Trained Workers
3500
3000
2500
2000
1500
1000
500
0
2000 2002 2004 2006 2008 2010
CEEBS Renewable Energy Workforce Commercial Industrial Energy Efficiency
In addition, we now have more than 50 training partners that offer hundreds of programs in building science, energy
efficiency, photovoltaics, solar thermal, wind energy, fuel cells, geothermal, and anaerobic digestion.
New York training facilities that came on board this year are located across the state, in Albany, Alfred, Baldwinsville,
Bronx, Buffalo, Dryden, Long Island City, Morrisville, New Paltz, Newark, New York,
Plattsburgh, Schenectady, Syracuse, Utica and West Seneca.
Energy Efficiency and Renewable
Energy Training Facility Locations
Sites that were open before April 1, 2010
Sites that were opened between April 1, 2010
and March 31, 2011
17
SUCCESS STORY
Green Jobs Training at The Altamont Progam
The Altamont Program, a subsidiary of Peter Young Housing Industries and
Treatment, began a “Green Jobs” training program a year ago that taught basic
weatherization skills, but found that participants needed help with job-readiness
skills, math for the construction industry, and literacy skills in order to succeed in
the marketplace. Financial assistance from NYSERDA’s Career Pathways program
filled these gaps by funding training in these areas and others, including a course
in understanding the green industry sector. NYSERDA also pays for a job coach/
internship coordinator, transportation to and from internships, tools and equipment.
“There’s a lot of interest in this program,” said Jackie Gentile, chief operating officer, The Altamont Program. “It’s
exciting for our population to be part of the green industry. They see it as a career path. The NYSERDA funding
enables us to provide the foundation so participants can be successful and move up quickly.”
New Program Focuses on Disadvantaged Workers
One especially innovative workforce development Career Pathways helps workers develop the necessary
expansion this year was the introduction of training basic skills to prepare them for more technical training
initiatives aligned with NYS Department of Labor classes. NYSERDA put in place 20 Career Pathways
Career Pathways for Disadvantaged Workers. contracts, funding training for more than 1,900 people
Through this program, NYSERDA partners with —many of whom were unemployed and on public
community-based organizations, environmental assistance. With the addition of Career Pathways
justice advocacy groups and New York State agencies training, NYSERDA now supports the full continuum
to identify training needs and develop training for of workforce development training from basic
minority, low-income, displaced and disadvantaged construction skills and work readiness to technical
New Yorkers. skills training, internships and apprenticeships, and
professional certification.
NYSERDA Workforce Development Continuum
Internships and Professional
Apprenticeships Certification
4 4 4Work Readiness
Technical Skills
NYSERDA Launches Solar Thermal Energy Training
NYSERDA expanded statewide training initiatives for renewable energy technologies to more than 3,295 participants
during 2010, including opportunities in photovoltaics, solar thermal, wind energy, geothermal, and anaerobic digesters.
One area of expansion was solar thermal energy training, launched in concert with NYSERDA’s new solar thermal
incentive program. We signed on four partners to develop solar energy training classes, add solar thermal modules to
existing energy-efficiency training, and more.
18
Bringing Quality Standards SUCCESS
to Energy Training STORY
This year, we completed alignment of every training SUNY Ulster Clean
program and certification with nationally-recognized Energy Technology
performance standards and industry requirements. Training Program Leads
We also expanded Building Operator Certification to New Company
(BOC®) training, a competency-based training and
certification program that offers facilities personnel Although he only recently began his career in the
the improved job skills and knowledge to transform solar industry, Doug Hertz says that he has “always
workplaces to be more comfortable, energy-efficient been environmentally conscious and fascinated by
and environmentally friendly. The BOC credential is technology.” Hertz began looking into photovoltaic
recognized by employers across the country as a sign installation while he was doing restorations on historic
of the value that certified facilities management homes, when he “realized there was a large void in PV
personnel can bring to their organizations. installers in our area and the few there weren’t doing up
to the [best] level.” He spent about six months talking to
With the leadership of our training partner, CUNY Institute people in the industry, became North American Board
for Urban Systems and the Building Performance Lab, of Certified Energy Practitioners (NABCEP)-certified
and support from employer partners in the commercial through the SUNY Ulster Clean Energy Technology
real estate sector, NYSERDA has provided BOC training Training (CETT) program and formed his company,
for members of the International Union of Operating Sunrise Solar Solutions. Hertz cites the CETT program
Engineers Local 94, who have improved the operational as “very useful.”
efficiency of their buildings between 10 and 15 percent,
immediately reducing energy costs.
NYSERDA Sponsors
National Clean
Energy Workforce
Education
Conference
Bringing the promise
of cleantech to market
starts with a qualified
workforce. NYSERDA sponsored the fourth annual
National Clean Energy Workforce Education Conference
in March in Saratoga Springs, gathering nearly 500
representatives from community colleges, vocational
high schools, four-year schools, industry-sponsored
training programs, labor and apprenticeship programs,
government agencies, workforce development boards,
credentialing bodies, utilities, and others.
Participants came from 29 states, and approximately 90
experts from New York and across the country shared
the latest and best knowledge on a wide range of topics.
19
Driving Demand for
Energy Efficiency
20
Cleantech in its largest sense means more than
developing new, clean technologies and products that
use less energy and pollute less, and a knowledgeable
workforce. It also means taking advantage of existing
technologies and products to reduce energy use.
In 2010, NYSERDA made great strides in the latter
through its long-standing residential and commercial/
industrial market transformation, technical support and
awareness programs. Despite a tepid economy, New
York homeowners and businesses continued to invest
in energy efficiency measures that helped them use
less energy and cut their energy costs.
In addition, we launched New York’s first solar thermal
incentive program to encourage homeowners and
businesses to replace electric hot water heaters with
solar hot water heaters and the Green Residential
Building Program to spur building and certification
of new green homes and major green renovations
to existing homes in the state. We streamlined
the application approval process for photovoltaic
incentives from months to weeks, and we won the
single largest Better Buildings grant from the U.S.
Department of Energy—$40 million—to support
financing for home energy savings improvements.
21
SUCCESS
STORY
Low-Income Family
Cuts Energy Costs,
Increases Comfort
through EmPower
New York
NYSERDA’s EmPower New York program provided
funds to an Upstate New York family for attic
insulation, several hours of blower-door assisted
air sealing, and a programmable thermostat. The
contractor, accredited by the Building Performance
Institute, reduced air leakage paths above 15
recessed lights, repaired the bathroom vent, and
vented the dryer to the outside. In addition, NYSERDA
funded high-efficiency lighting.
The family reports that the house is quieter as well
as less drafty, and NYSERDA estimates that the
household will save $670 a year in the cost of home
heating oil and $60 in electricity bills annually.
22
Residents Realize Energy Savings
For residents, one highlight of the year was the roll-out EmPower New York (EmPowerSM) serves households
of Green Jobs–Green New York (GJGNY) in November. with incomes below 60 percent of state median income
GJGNY provides New Yorkers with access to free or and pays for 100 percent of the approved work scope
reduced-cost energy audits, energy efficiency installation to reduce home energy usage and cut costs. During
services (through NYSERDA’s Home Performance with 2010, EmPower provided electricity demand reduction
ENERGY STAR® program), low-cost financing, and and home energy performance improvements to more
pathways to training for various green-collar careers. than 6,334 low-income households. From an average
investment of $1,247 per household by NYSERDA,
During the last quarter of the fiscal year, shortly residents are realizing an annual energy cost savings
after the launch of GJGNY, 2,116 New York State of $212.
homeowners completed energy efficiency retrofits.
That was 33 percent more than during those same Residential energy-efficiency improvements made under
months of the previous fiscal year, and 45 percent Home Performance with ENERGY STAR have grown
more than the year before that. significantly since that program’s inception 10 years ago.
This year, 2011, is on its way to being a stellar one with
The low-income component of Home Performance more than 2,000 retrofits from January through March.
with ENERGY STAR accounted for approximately 20
percent of all 2010 projects, helping increase savings
for New York households with income levels at or below
80 percent of the state median income or area median
income, whichever is higher.
23
Multifamily Program Emissions Reduction Program (in support of New York
Relaunches City legislation calling for a phase-out of #6 fuel oil) and
Multifamily Geothermal Program.
NYSERDA relaunched the Multifamily Performance
Program in September 2010 after strengthening and In addition to eliminating hundreds of thousands of
streamlining it so the sector could contribute its share tons of carbon emissions over 10 years, the Multifamily
to the state’s goal to reduce statewide electricity usage Program helps cleantech thrive in New York by involving
by 15 percent by 2015. During the last quarter of the buildings with five or more living units in pilots and
fiscal year (January, February, March 2011), we rolled demonstrations of new technology being developed by
out three new multifamily programs – Electric Reduction New York State companies.
in Master-Metered Buildings, Multifamily Carbon
SUCCESS STORY
Multifamily Building Demonstrates
Cleantech Controls Product
Coordinated management of room air conditioners through smart-building systems represents a savings opportunity
for multifamily, master-metered buildings and a resource for demand response at system peak. NYSERDA began a
project last year with Jefferson Towers, a multifamily cooperative building in New York City, to demonstrate that smart-
building systems can provide centralized building energy management and occupant comfort by coordinating how
room air conditioners run. The project replaced 230 of the building’s room air conditioners with networked units and a
smart-building system that can optimize comfort while minimizing electricity demand. It will be tested in summer 2011.
24
NYSERDA Helps
Commercial/Industrial Sector
Reduce Operating Costs
Commercial and industrial customers took the idea
of cleantech to heart this year, improving their bottom
lines by reducing operating costs through energy
and process efficiency improvements. NYSERDA
provides best practices and information, targeted
energy analysis, and financial incentives for project
implementation in the commercial and industrial
sector through our Energy Efficiency Services Group
(EES). Direct incentives and targeted energy analysis
supported more than 3,375 projects statewide during
2010, representing a 185 percent increase in program
participation from 2008.
Cumulative energy savings for projects completed
in 2010 totaled 365,150 MWh, helping customers
reduce their operating costs by over $40 million.
The average simple payback for projects participating
in these programs is six years. Demonstrating
good stewardship of public funds for New York State,
EES exceeded its energy savings goals for System
Benefits Charge (SBC) III well in advance and still
has considerable dollars available for additional
companies in 2011.
Annual Electric Savings (GWh) for Businesses, School Districts, Municipalities,
Colleges and Hospitals Participating in NYSERDA Programs
4500
4000
3500
3000
2500
2000
1500
1000
500
0
2002 2004 2006 2008 2010
Total Installed GWh Savings Total Encumbered GWh Savings
25
During 2010, EES streamlined processes for commercial/ approximately $110 million, with 98 percent
industrial customers, including fast-tracking projects of program funds obligated for the municipal,
and improving project delivery. The group also focused university, school and hospital sectors. Projects
on managing delivery of New York’s time-sensitive include energy efficiency, renewable technologies,
federal stimulus dollars from the American Recovery and clean fleet.
and Reinvestment Act (ARRA) and brought eight Energy
Efficiency Portfolio Standard (EEPS) programs up • Eighteen ARRA projects were funded for solar
and running. thermal, dual-axis tracking systems and high-
efficiency biomass. These advanced technologies
NYSERDA’s comprehensive program design ensured a are receiving advanced measurement and
dramatic increase in incentive dollars going to schools verification to help inform future program
and municipalities this year to help alleviate the impacts configurations. Two of these technologies are
of these tax-levying sectors on tax payers. Highlights for manufactured within New York State: 1) Advanced
these targeted sectors include the following: Climate Technologies in Schenectady is
manufacturing a staged-combustion/gasification
• F or the more than 1,000 participating schools, the wood boiler that uses sensors to optimize the
average school in NYSERDA’s free benchmarking oxygen in the combustion chamber (the equivalent
program has reduced energy use by 22 percent of going from a carbonator to fuel injection in a
per square foot since 2002-2003. This is the car engine). This improves the boiler’s efficiency
single largest controllable budget category for by up to 10 percent and reduces the amount
school districts. of particles emitted by up to 80 percent over
conventional boilers. 2) SolarNovar in Plattsburgh
• The K-12 Sector has received $22.5 million through has developed the ground-mounted, dual-axis
the American Recovery and Reinvestment Act solar tracking system for solar thermal hot
administered through NYSERDA. This is in addition water systems.
to $60 million in SBC funds that the sector has
received since the inception of the program. • Twenty two projects received almost $2 million
of ARRA funds to develop climate action plans
• S ix hundred and forty-five projects were funded for municipalities.
by ARRA monies. These projects received
SUCCESS STORY
Large Financial Services Firm Cuts Operating
Costs, Saves Energy
TIAA-CREF, a financial services organization with $453 billion in combined assets under management, has improved
the comfort, reliability, and efficiency of its headquarters building by replacing aging chillers with Trane high-efficiency
chillers, upgrading its cooling towers, and installing an ice thermal storage system. The thermal storage system shifts
energy use to off-peak hours, saving approximately $765,000 per year in operating costs, energy use and demand
charges. The project, which qualified for a $219,000 incentive from NYSERDA, is generating a 25 percent internal rate
of return for TIAA-CREF. In addition, the efficiency improvements are avoiding 6.1 million pounds of carbon dioxide
emissions – the equivalent of removing 560 cars from the road.
26
New Program Cuts Costs for Industrial Processes
While helping to reduce costs in New York State is a In addition, we have continued to address a major
priority, preserving and expanding the economic engine challenge for efficiency projects—getting them to
of the manufacturing industry in the state is also a vital significantly exceed the minimum efficiency required by
NYSERDA goal. One program created in the past two the New York State Energy Conservation Construction
years, the Industrial Process and Efficiency Program, Code. NYSERDA recognized 23 new construction
kicked into high gear this year to do just that. projects with High Performance Building plaques this
year. The plaques are presented to participants whose
The Industrial and Process Efficiency Program works to new construction and major renovation projects are
provide performance-based incentives to manufacturers designed to perform at least 30 percent better than the
and data centers implementing cost-saving energy New York State Energy Conservation Construction
efficiency and process improvements. Program Code through improved energy efficiency and building
applications and savings in the first three months of 2011 energy management.
have nearly exceeded the entire program performance
of 2010. To date, we have received more than 250 In an effort to provide improved reporting and streamline
applications, which will save more than 130,000 MWh customer access to program incentives, a new
and 600,000 MMBtus of natural gas annually. This was operations group was created. The operations group
achieved despite the lagging economic factors in the verifies data accuracy and, to automate the process, has
industrial sector. developed online application forms for New Construction
and Existing Facilities.
Annual Electric Savings (MWh) to Industrial and Manufacturing Processes NYSERDA provides incentives to the
Participating in New NYSERDA Industrial Process Efficiency Program commercial and industrial sector to make
energy efficiency projects more affordable,
400,000 as well as enhance competitiveness and
350,000 cut costs for businesses, touching every
300,000 sector of the economy, including retail,
250,000 manufacturing, hospitality, health care,
200,000 agricultural, commercial, and others.
150,000
100,000
50,000
0
Jul 09
Sep 09
Nov 09
Jan 10
Mar 10
May 10
Jul 10
Sep 10
Nov 10
Jan 11
Mar 11
27
Energy-Savings Incentives Help
Agricultural Sector Compete
Three commercial/industrial areas that received special
attention this year were agriculture, data centers, and
healthcare. Governor Andrew Cuomo launched a
new initiative to help farmers across the state reduce
their energy use, save on operating costs, and cut
greenhouse gas emissions through more efficient
use of energy.
Through NYSERDA, farmers obtained access to $3.2
million in financial incentives to support 75 percent of
the cost of electricity and gas efficiency investments.
The program was so popular, that the $3.2 million—
provided on a first-come, first-served basis —was
gone within a few months.
28
SUCCESS STORIES
RiverBay Corporation Cuts Costs
with On-Site Generation
RiverBay Corporation manages the CoOp City campus,
a 15,000-unit complex with 60,000 residents, located in
the Bronx. RiverBay Corporation is participating in the
NYSERDA Combined Heat and Power (CHP) Performance
Program. The CHP system consists of two 12.5 MW
combustion turbines and a 13 MW steam turbine. This
system will be used for complex heating, cooling, domestic
hot water, and electricity needs.
This project will save RiverBay Corporation approximately
$15 million annually. NYSERDA has committed a $2 million
incentive for this system, which is expected to generate
160,000,000 kWh/yr and offset summer peak demand
by 19 MW.
IBM Data Centers
Improve Efficiency
IBM® wanted to improve the efficiency of its data centers
in New York. It found that it can earn 12 cents/kWh saved
through NYSERDA Industrial and Process Efficiency
program (IPE) incentives for projects in Endicott and
Poughkeepsie locations with 186,000 square feet of data
center space. These locations provide for 7.6 MW of IT load
serving both internal IBM users and commercial hosting
clients. The company estimates it will realize annual energy
savings in excess of 9 million kWh upon project completion.
With NYSERDA IPE incentives of $1,084,800 offsetting
the cost of these capital improvements, the payback of
the project improves by over a year. By providing such a
meaningful difference in project payback periods, these
incentives allow IBM to plan additional work over the course
of the two-year project. In addition, using this experience,
IBM is developing a repeatable methodology to help clients
with their own data center energy-efficiency projects.
29
Partnership with Con Edison Leads to
Data Center Energy Use Reductions
New York State contains the second highest
concentration of data centers in the country, and
energy consumption from data centers continues
to grow. With many data centers reaching capacity,
businesses are faced with either optimizing their
operations or designing and building newer, more
efficient facilities.
A partnership between NYSERDA and Con Edison
provided data center customers in the Con Edison
service territory with technical assistance and financial
incentives to improve energy efficiency. The $10
million in funding is expected to generate as much as
$8 million in annual energy savings for this energy-
intensive segment.
Partnership with National Grid to
Help Hospitals Cut Energy Use,
Reduce Operating Costs
NYSERDA and National Grid launched “Energy
Efficiency for Health” this year, a powerful new
partnership to help National Grid’s hospital customers
across New York State reduce operating costs through
investments in energy efficiency, freeing up funds for
patient services and establishing their leadership in
energy efficiency and sustainability.
Under the new initiative, National Grid and NYSERDA
are working together to provide hospitals with
individualized, targeted technical assistance, as well
as up to $10 million in funding for energy efficiency
initiatives that will generate as much as $5 million in
annual energy savings.
30
Outreach and Education
31
The long-term and permanent changes in energy Reaching More Consumers 1321
consumption patterns cannot occur unless there are
permanent changes in consumer behavior. Consumers The Energy Smart Products Program is an ongoing
need to understand the value, implications, and benefits partnership between NYSERDA, retailers around the
of the buying choices they make. Growing consumer state and manufacturers of low-energy-use appliances,
demand for energy-efficient products, buildings, and lighting, and other products. While 2010-11 proved a
renewable resources will ensure a responsive supply trying time for retailers due to belt-tightening nationwide,
chain; changing consumer behaviors will result in this program experienced substantial growth.
decreased energy consumption and more effective use
of energy resources. By expanding the reach of the program in the areas of
lighting, consumer electronics, and HVAC products,
Tapping Grassroots Strength NYSERDA vastly increased the public’s exposure to
energy-efficient products. This year, NYSERDA signed
NYSERDA’s Energy $mart Communities Program on 353 stores that sell lighting products, 50 stores that
(E$C) provides outreach, education, and promotion sell electronics, and 12 new manufacturing partners.
of NYSERDA programs to residents, businesses,
institutions, municipalities, and industrial companies Partner Growth
of New York State. The E$C Coordinators develop
networks of strategic partners throughout 10 regions of 2010
the state. This year, NYSERDA doubled the number of
coordinators, now totaling 23 throughout the state. 2009 1008
E$C coordinators are grassroots organizers who help 2008 946
match energy project needs with funding opportunities
from NYSERDA or other sources. They conduct 2007 628
seminars, speak at local events and otherwise use
direct outreach to promote energy efficiency, renewable Number of storefronts
energy, and economic development.
Thanks to NYSERDA’s program efforts, sales of compact
This year, E$C coordinators increased their efforts to help fluorescent lights (CFLs) by our partners more than
early-stage companies and clean-energy entrepreneurs doubled during 2010, to 3.4 million from 1.4 million in
access NYSERDA business assistance initiatives. The the previous year. That equates to an estimated annual
E$C program, now nearly a decade old, has created energy savings of 215 million kilowatt hours.
more than 600 local partnerships with economic
development groups, chambers of commerce, industry This year also saw New Yorkers embrace energy
organizations, and homeowners associations. efficiency in their homes through New York’s Great
Appliance Swap-Out, a rebate initiative to encourage
consumers to replace their older, less energy efficient
appliances with new ENERGY STAR® appliances and
to recycle the ones they discarded. Working through
NYSERDA retailer partners across the state, 165,148
New Yorkers replaced 80,638 refrigerators, 82,616
clothes washers, 4,242 freezers and 2,370 dishwashers
during the Swap-Out. More than 70 percent of the old
refrigerators and clothes washers were recycled.
32
SUCCESS STORY
Boosting Awareness and Use of ENERGY STAR®
Products on Main Street
Sheehan’s Appliance, owned by BlakeAnne Sheehan
and her husband Chris, is located in the scenic town of
Baldwinsville, in Central New York. It has been in the family
since 1972. In 1999, the couple first became involved in
NYSERDA’s ENERGY STAR program, and they have not
looked back. “Most people actually ask for ENERGY STAR
these days, so the best way to get our customers into the
showroom is to promote them,” said Mrs. Sheehan. “The
advertising incentives we get from the NYSERDA program
allow us to do that, and it helps us to sell more ENERGY
STAR products.” Maximizing the potential benefit to their
business, Sheehan’s has also participated in NYSERDA’s
market share incentive program for ENERGY STAR clothes
washer sales, always surpassing the sales needed to earn
the incentive.
Taking further advantage of NYSERDA incentives, the
Sheehans also distribute an ENERGY STAR direct mailer to
their customers twice a year featuring a one-day-only sale
on everything in the store. “We get a huge response every
time,” said Mrs. Sheehan.
33
NYSERDA Facts
34
NYSERDA’s Promise to New Yorkers:
New Yorkers can count on NYSERDA for objective,
reliable, energy-related solutions delivered by accessible
dedicated professionals.
Mission: Advance innovative energy solutions in ways that improve New York’s
economy and environment.
Vision: Serve as a catalyst—advancing energy innovation and technology,
transforming New York’s economy, and empowering people to choose clean
and efficient energy as part of their everyday lives.
Core Values: Objectivity, integrity, public service, and innovation.
35
Portfolios
NYSERDA programs are organized into five portfolios, each representing a complementary group of offerings with
common areas of energy-related focus and similar objectives. Portfolios allow NYSERDA to clearly convey the focus
of our programs to public and private entities and stakeholders.
Energy Efficiency & Renewable Programs that inventions of new energy technologies alone is not
sufficient, NYSERDA takes a three-pronged approach
NYSERDA’s Energy Efficiency & Renewable programs that considers technical, business, and regulatory
help New York’s residents and businesses become more issues - in parallel - to increase the rate of innovation and
energy efficient, save money, and access renewable accelerate the commercialization process. Includes:
energy options and energy-saving new products. These Technology Research & Development, STEP®, and
programs build the market infrastructure to help deliver Business Development.
clean energy to New Yorkers and they increase market
potential of commercially available energy efficiency Energy Education & Workforce Development
and renewable energy technologies in New York State.
Program delivery focuses on the residential, commercial NYSERDA’s Energy Education & Workforce Development
(including institutional and municipal) and industrial, programs help build a workforce and a public, including
transportation, and power sectors. NYSERDA’s “whole the next-generation of New York consumers, ready
building” programs for existing structures ensure that to lead in the delivery and adoption of clean energy
building and home owners, including tenants, make solutions. NYSERDA’s Workforce Development &
decisions based on a comprehensive view of their Training Program focuses on building the infrastructure
options, while NYSERDA’s new building programs necessary to support technical training of workers in
support the continued growth of energy efficient building energy efficiency and renewable energy, with a focus
practices, and work to transform New York’s building on new and advanced technologies. As part of this
industry. Income-eligible programs as well as financing effort, NYSERDA endorses third-party, independent
through Green Jobs – Green NY help make energy accreditation of training programs, certification of
efficiency more accessible to all New Yorkers. Includes: instructors, and certification of technology installers.
Residential, Commercial & Industrial, Multifamily Homes, Energy Education Programs provide educators across
Codes & Standards, Renewable Portfolio Standard, the state with tools to encourage students to learn and
Transportation, and Green Jobs – Green NY. help build New York’s clean energy future. In addition,
NYSERDA offers consumers statewide education on
Energy Technology Innovation & Business the benefits of energy efficiency and renewable energy
Development resources, ways to reduce energy consumption through
simple changes at home and work, and information
NYSERDA’s Innovation & Business Development to support purchasing decisions related to energy-
programs foster the demonstration of advanced consuming products, such as lighting and appliances.
technologies and the growth of a clean energy Includes: Workforce Development & Training Programs,
eco-system in New York. NYSERDA brings together K-12 Schools, and Outreach & Education.
strategic public and private partners to support clean
energy entrepreneurs across the state and accelerate Energy & the Environment
the development and commercial introduction of
emerging clean-energy technologies in New York. NYSERDA’s Energy & the Environment programs support
Achieving transformative breakthroughs in technology research to better understand and mitigate the impacts
that can help New York State meet its energy and climate of energy production and use on our environment.
challenges requires innovation in a broad range of Initiatives focus on monitoring and understanding
technologies across all sectors of New York’s economy energy-related environmental impacts and finding
– transportation, manufacturing, power generation, solutions that both improve energy performance and
buildings (residential, commercial, and multifamily), and the environment. NYSERDA manages a number of
energy delivery infrastructure. In addition, recognizing initiatives with local and regional partners, designed to
36
increase energy sustainability and reduce environmental the effects of NYSERDA’s clean energy programs in
impacts, including the State’s administration of the an evolving energy landscape. Maintaining objectivity
Regional Greenhouse Gas Initiative program. Includes: in its analysis of program options and activities is key
Environmental Research, Sustainability Planning, West to ensuring the success of NYSERDA’s data, planning
Valley Site, and Regional Initiatives. and policy functions; such objectivity ensures that
NYSERDA’s reputation among stakeholders as an honest
Energy Data, Planning & Policy arbiter in policy deliberation and program performance is
maintained at the highest possible level. Includes: Energy
NYSERDA‘s Energy Data, Planning & Policy activities Assurance, Tracking & Assessing Energy Markets, Energy
seek to ensure that New York State policymakers Planning & Forecasting, Policy & Program Development,
and stakeholders have a solid foundation of objective and Program Evaluation.
information and data upon which decisions can be
made. NYSERDA provides support across a spectrum of
program activities designed to maintain energy systems
reliability, analyze energy policy scenarios, and quantify
Primary Sources of NYSERDA
Funding in Fiscal Year 2010–2011
System Benefits Charge (SBC) Renewable Portfolio Standard (RPS)
Established by the New York State Public Service A clean-energy initiative through which NYSERDA invests
Commission (PSC), the SBC funds public policy initiatives in the renewable energy industry to develop infrastructure,
not expected to be adequately addressed by New York’s reach market potential, and overcome the steep learning
competitive electricity markets, including energy programs curve typical of new industries.
targeting efficiency measures, research and development,
and the low-income sector. Clean Air Interstate Rule (CAIR)
Energy Efficiency Portfolio Standard (EEPS) Pursuant to New York State Department of Environmental
Conservation (DEC) regulations, NYSERDA was
An energy efficiency initiative to reverse the pattern of allocated and authorized to sell 10 percent of New York’s
ever-increasing energy use in New York by reducing budget of both “seasonal” and “annual” program nitrous
electric usage 15 percent of projected levels by 2015, oxide allowances. NYSERDA is using CAIR Funds
it is considered one of the most aggressive efficiency to establish the New York Battery and Energy Storage
programs in the nation. (NY-BEST) Consortium.
Regional Greenhouse Gas Initiative (RGGI) Statutory Funds
The first market-based, mandatory cap-and-trade The statutory program is a section 18-a appropriation
program in the U.S. to reduce greenhouse gas emissions. that levies a rate payer charge on the intrastate sale
New York State participates along with nine other of gas and electricity. Proceeds are directed to the
Northeast and Mid-Atlantic states. NYSERDA R&D program where they are used to support
energy-related programs relevant to all fuels and/or are
American Recovery and Reinvestment Act (ARRA) not geographically limited. This program supports
research activities including transportation, environmental,
Known as the Federal Stimulus Act. NYSERDA invests and non-electric heating.
ARRA funds to create clean energy jobs and promote
investment and consumer spending in energy efficiency
in New York.
37
West Valley Demonstration Project
West Valley Site Management Program
Reaches Milestones
NYSERDA has a major environmental responsibility Several major milestones were completed by NYSERDA
through its stewardship of the West Valley site in and DOE in 2010 that will allow the agencies to make
Cattaraugus County. NYSERDA’s West Valley Site significant progress on the cleanup over the next several
Management Program (WVSMP) works with the U.S. years. These milestones include:
Department of Energy (DOE) to conduct the West
Valley Demonstration Project (WVDP), a high-level • Agreement by NYSERDA and DOE on a phased
radioactive waste solidification, decontamination, and approach for WVDP decommissioning activities;
decommissioning demonstration project. The unique
state and federal partnership at West Valley was created • C ompletion of a Final Environmental Impact
by the U.S. Congress in 1980 through the passage of the Statement (EIS) on WVDP decommissioning
West Valley Demonstration Project Act. The WVSMP and the removal or management of the remaining
is also responsible for the safe management of the facilities at the Center;
remainder of the 3,300-acre Center, including the
shut-down State-Licensed Disposal Area (SDA), • Approval by the U.S. District Court of a Consent
a 15-acre disposal facility that contains 2.4 million cubic Decree that settles litigation filed by New York
feet of radioactive waste that was disposed in the 1960s State in 2006 against DOE and the federal
and 1970s. government in regard to cost responsibilities
at the Center. This agreement settles decades
of disagreement;
• A greement by NYSERDA and DOE on a process
for further evaluating technical issues identified
by NYSERDA through review of the
decommissioning EIS.
38
NYSERDA’s Own Sustainability Efforts
As we carry out our mission to help improve New Transportation
York’s economy and environment by advancing energy
solutions, NYSERDA is also simultaneously working to • E ncourage biking, walking, carpooling, and using public
ensure our business operations are sustainable. From transportation to get to work
the choices we make about our building systems to our
procurement practices, NYSERDA has taken steps to • M aintain a fleet of seven hybrid or electric vehicles for
reduce our energy and water usage, decrease waste employee business-related travel (two plug-in hybrids,
production, and minimize costs. three hybrid vehicles, two flex-fuel vehicles)
• A ctively promote tele- and video-conferencing for
business travel reduction
We believe that regular performance assessments are Waste Reduction
one of the most important ways to help organizations
track their energy efficiency and sustainability • E lectronically distribute daily news clips relating to
achievements. To help track our own achievements, NYSERDA to staff and board members
NYSERDA annually updates our headquarters building
benchmark within the Environment Protection Agency’s • Purchase green office products, such as unbleached
(EPA) Portfolio Manager. Portfolio Manager is an paper towels, 100 percent recycled office paper,
interactive energy management tool that tracks and recycled-content paper products, etc.
assesses energy and water consumption, and compares
those results to a national database. In 2010, NYSERDA • E liminated the practice of mailing solicitation
once again earned an ENERGY STAR building label* announcement notices and other large reports, and
as we did each year since 2007. disseminate electronically instead
Our employees and our sustainability committee, • Encourage all staff to electronically view and transfer
SustaiNYSERDA, take great pride in doing our part documents
to make our state a more eco-friendly place to live,
work, and enjoy. The following are ongoing and • Respond to the majority of Freedom of Information Law
implemented activities: requests (FOIL) electronically
Energy • S end the majority of our Board and Committee meeting
agendas and supporting documents electronically
• I nstituted quarterly inspections of our building to ensure
it is performing efficiently and to identify/address any • Set computer printer options to double-sided print
areas of concern • Switched from a source separation recycling program
• I nstalled energy efficient products and equipment, to a single-stream recycling program, and created
including a new HVAC system, LED lighting, motion detailed signage to educate staff
sensors, and exhaust fan timers
Water
• Use Energy Saving settings on printers and copiers
• E ncourage energy savings practices by employees, • U se ground water for irrigation on NYSERDA property
instead of municipal water
such as turning off computers, lights, and other
external devices Toxins
• When contracting, prioritize entities that use
low-VOC (volatile organic compound) paints
and organic products
• P urchase low-VOC carpeting and office furniture
• Support alternative pest management systems
(such as Integrated Pest Management) that minimize
the use of pesticides and non-native species
39
NYSERDA Program and Service Areas
Executive/Administration Energy Analysis
- Communications - State Energy Plan
- Consumer Services & Events Management - Energy Assurance & Contingency Planning
- Contract Management - Energy Modeling & Forecasting
- Counsel - Policy & Program Development
- Facility & Administrative Services - Program Evaluation
- Finance & Accounting
- Governmental Affairs Energy Efficiency Services
- Human Resources
- Information Technology & Security - Business Partners
- Internal Audit - Data Centers
- Marketing & Economic Development - Distributed Generation
- Electric Demand Management
Clean Energy Research & Market - Existing Facilities
Development - FlexTech, Power & Process
- Industrial Processes
- Transportation & Power Systems - New Construction & Green Buildings
- Energy Markets & Power Delivery - NYS Energy Codes & Appliance Standards
- Environment & Energy Resources - Regulatory Affairs & Strategic Planning
End-Use Application & Innovation Green Jobs - Green New York
(EUAI) Department
Residential Energy Services Program
- Manufacturing Technology Development & On-Site
- Community & Market Support
Power Applications - Energy Education in Schools
- ENERGY STAR® Products
- Buildings Research & Development - Green Residential Building Program
- Home Performance with ENERGY STAR® (1-4 family)
- Innovation & Business Development - Low-Income Affordability Programs
• A ssisted Home Performance with ENERGY STAR®
• EmPower New York
• Low-Income Forum on Energy
- New York ENERGY STAR® Homes (1-4 family and
low-rise multi-unit new construction)
- Photovoltaic & Solar Thermal
- Workforce Development
Saratoga Technology + Energy Park® (STEP®)
West Valley Site Management Program
40
Financial Statements
March 31, 2011
41
New York State Energy Research and Development Authority (A Component Unit of the State of
New York)
Table of Contents
March 31, 2011
Responsibility for Financial Reporting Page
Independent Auditors’ Report 413
Management’s Discussion and Analysis 424
Government-wide Financial Statements 435
Statement of Net Assets 591
Statements of Activities 5120
Governmental Fund Financial Statements
Balance Sheet 5131
Statement of Revenue, Expenditures and Changes in Fund Balances 5142
Agency Fund Financial Statements
Statement of Fiduciary Net Assets 5153
Notes to Financial Statements 5164
Required Supplementary Information (unaudited): 6297
Schedule of Funding Progress for Other Postemployment Benefit Plans
42
RESPONSIBILITY FOR FINANCIAL REPORTING
Management is responsible for the preparation, integrity and objectivity of the financial statements of the New
York State Energy Research and Development Authority (the Authority), as well as all other information
contained in the Authority’s Annual Report. The financial statements of the Authority for the fiscal year
ending March 31, 2011 were prepared in conformity with accounting principles generally accepted in the
United States of America. Financial information contained elsewhere in the Annual Report is consistent with
the financial statements. The Board of the Authority adopted these financial statements and the Annual Report
at a meeting on June 20, 2011.
The Authority maintains a system of internal controls, the objectives of which are to provide reasonable
assurance as to the proper authorization and recording of transactions, the safeguarding of Authority assets, the
compliance with applicable laws and regulations, and the reliability of financial records for preparing financial
statements. The internal control structure is subject to periodic review by management, internal audit staff and
the independent auditors. No internal control system can provide absolute assurance that errors and
irregularities will not occur due to the inherent limitations of the effectiveness of internal controls; however,
management strives to maintain a balance, recognizing that the cost of such system should not exceed the
benefits derived.
The Authority’s financial statements have been audited by Lumsden & McCormick, LLP, independent auditors
appointed by the Members of the Authority. Management has made available to the independent auditors all
the financial records and related data of the Authority, as well as providing access to all the minutes of the
meetings of the Board and its standing committees. The independent auditors periodically meet directly with
the Audit and Finance Committee of the Board, which is comprised of Members who are not employees of the
Authority.
The independent audit included obtaining an understanding of the internal control structure, tests of
accounting records, and other procedures which the independent auditors considered necessary in order to
express an opinion as to the fairness of the presentation of the financial statements. No material weaknesses in
internal control or any condition of non-compliance with applicable laws, regulations or policy were noted by
the independent auditors. The unqualified independent auditors’ report attests that the financial statements are
presented fairly, in all material respects, in accordance with accounting principles generally accepted in the
United States of America.
Francis J. Murray, Jr. Jeffrey J. Pitkin
President and Treasurer and
Chief Executive Officer Chief Financial Officer
1
43
INDEPENDENT AUDITORS' REPORT
Members of the Authority
New York State Energy Research and Development Authority
We have audited the accompanying financial statements of the governmental activities and each major fund
of the New York State Energy Research and Development Authority (the Authority) (a component unit of
the State of New York), as of and for the year ended March 31, 2011, which collectively comprise the
Authority's financial statements as listed in the table of contents. These financial statements are the
responsibility of the Authority's management. Our responsibility is to express opinions on these financial
statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards, issued by
the Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe that our audit
provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective
financial position of the governmental activities and each major fund of the Authority, as of March 31, 2011,
and the respective changes in financial position for the year then ended in conformity with accounting
principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated June 20, 2011, on our
consideration of the Authority's internal control over financial reporting and on our tests of its compliance
with certain provisions of laws, regulations, contracts, grant agreements, and other matters. The purpose of
that report is to describe the scope of our testing of internal control over financial reporting and compliance
and the results of that testing, and not to provide an opinion on internal control over financial reporting or
on compliance. That report is an integral part of an audit performed in accordance with Government Auditing
Standards and should be considered in assessing the results of our audit.
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis and the schedule of funding progress for other postemployment benefits on pages 3
through 8 and page 27 be presented to supplement the basic financial statements. Such information,
although not a part of the basic financial statements, is required by the Governmental Accounting Standards
Board, who considers it to be an essential part of financial reporting for placing the basic financial statements
in an appropriate operational, economic, or historical context. We have applied certain limited procedures to
the required supplementary information in accordance with auditing standards generally accepted in the
United States of America, which consisted of inquiries of management about the methods of preparing the
information and comparing the information for consistency with management’s responses to our inquiries,
the basic financial statements, and other knowledge we obtained during our audit of the basic financial
statements. We do not express an opinion or provide any assurance on the information because the limited
procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
June 20, 2011 2
44
New York State Energy Research and Development Authority
(A Component Unit of the State of New York)
Management’s Discussion and Analysis
For the Year Ended March 31, 2011
Unaudited
The following Management’s Discussion and Analysis (MD&A) of New York State Energy Research and Development
Authority’s (NYSERDA) financial performance provides an overview of NYSERDA’s financial activities for the fiscal year
ended March 31, 2011. The information contained in the MD&A should be considered in conjunction with the information
presented as part of NYSERDA’s Basic Financial Statements as presented. Following this MD&A are the basic financial
statements of NYSERDA with the notes thereto that are essential to a full understanding of the data contained in the
financial statements. NYSERDA’s basic financial statements have the following components: (1) government-wide financial
statements; (2) government fund financial statements; (3) agency fund statements; and (4) notes to the financial statements.
The government-wide financial statements are designed to provide readers with a broad overview of NYSERDA’s finances
in a manner similar to a private-sector business. The Statement of Net Assets presents information on all of NYSERDA’s
assets and liabilities, and the difference between the two is reported as net assets. The Statement of Activities presents
information showing how NYSERDA’s net assets change during each fiscal year. All changes in net assets are reported as
soon as the underlying event giving rise to the change occurs, regardless of the timing of the related cash flows. Thus,
revenues and expenses are reported in the statement for some items that will result in cash flows in future fiscal periods.
The government-wide financial statements present information about NYSERDA as a whole. All of the activities of
NYSERDA are considered to be governmental activities.
Governmental fund financial statements focus on near-term inflows and outflows of resources, as well as on balances of
resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term
financing requirements. Because the focus of governmental funds is narrower than that of the government-wide statements,
it is useful to compare the information presented for governmental activities in the government-wide financial statements.
By doing so, the reader may better understand the long-term impact of the government’s near-term financing decisions.
Both the governmental fund balance sheet and the governmental statement of revenues, expenditures, and changes in fund
balances provide a reconciliation to facilitate the comparison between governmental funds and governmental activities.
Agency funds are used to account for resources held for the benefit of parties outside the government. Agency funds are
not reflected in the government-wide financial statements because the resources of those funds are not available to support
NYSERDA’s programs. The notes to the financial statements provide additional information that is essential for a full
understanding of the information provided in the government-wide and governmental fund financial statements.
CONDENSED FINANCIAL INFORMATION
The following condensed financial information is presented from NYSERDA’s government-wide financial statements:
(Amounts in thousands)
Summary of Net Assets March 31, March 31, % Change
Cash and investments 2011 2010 2011-2010
Capital assets 22.7%
Other assets $925,858 754,322 (7.9%)
14,495 15,732 12.0%
31,107 27,765 21.8%
Total assets 971,460 797,819 1.2%
Long-term liabilities 7,091 7,009 9.0%
Other liabilities 93,309 8.5%
101,705 182.7%
Total liabilities 108,796 100,318 (4.1%)
Net Assets: 1,138 24.0%
3,216 13,890 23.7%
Unrestricted 13,327
Invested in capital assets, net of debt 846,121 682,473
Restricted $862,664 697,501
Total Net Assets
Total assets increased $173.6 million (21.8%) primarily due to a $171.5 million (22.7%) increase in cash and investments.
This increase was principally due to scheduled collections from utilities in the New York Energy $mart and Renewable
Portfolio Standard programs, which exceeded disbursements for expenses, as well as proceeds received from the sale of
emission allowances for the Regional Greenhouse Gas Initiative (RGGI). In addition, other assets increased $3.3 million
3
45
New York State Energy Research and Development Authority
(A Component Unit of the State of New York)
Management’s Discussion and Analysis
For the Year Ended March 31, 2011
Unaudited
(12.0%) due to increases in accounts receivable balances due to the timing of expenditures and billings of reimbursable
grants and due to an increase resulting from loans issued through the Green Jobs-Green New York program.
Total liabilities increased $8.5 million (8.5%). Long-term liabilities increased $0.08 million (1.2%) primarily due to an
increase in compensated absences due to larger sick leave accrual balances for current employees as well as an increase in the
estimated value of accumulated sick leave for retirees to cover their share of post employment healthcare costs. Other
liabilities increased $8.4 million (9.0%) primarily due to a $7.2 million net increase in the Con Edison payable and a $0.9
million increase in deferred revenue resulting from the receipt of an American Recovery and Reinvestment Act payment for
the establishment of a loan loss reserve under the Green Jobs Green New York loan program and partially offset by the
recognition of revenue for settlement funds received from the NYS Department of Environmental Conservation in the
prior year. The net increase in the Con Edison Payable was the result of a $5.4 million net increase in net payments due
Con Edison for program funding advances not committed in the Demand Reduction program and an increase of $2.7
million in payments due under the Gas Efficiency program for advances not committed at March 31, 2011 offset in part by
a net decrease in the estimated amount due under the terms of a settlement agreement related to the RGGI program.
Net assets, the difference between NYSERDA’s assets and its liabilities, increased overall by 23.7% from $697.5 million to
$862.7 million. Restricted net assets (unexpended funds received for particular specified programmatic purposes) increased
24.0% to $846.1 million. Unrestricted net assets, (which can be used to finance operations without constraints established
by debt covenants, enabling legislation, or other legal requirements), increased 182.7% to $3.2 million, principally due to
unanticipated bond closing fees NYSERDA received for refunding certain utility bonds and from general variances in
operating revenues and expenses of unrestricted funds.
Summary of Changes in Net Assets (Amounts in thousands) March 31, % Change
from Operating Results March 31, 2010 2011-2010
Program Revenues: 2011
(35.6%)
State Appropriations $31,915 $49,583 6.9%
System Benefits Charge Funding 289,913 271,095 44.6%
Renewable Portfolio Standard 126,012 87,171
Allowance Proceeds 98,958 125,904 (21.4%)
Third-party reimbursements 19,434 (68.4%)
Federal grants 6,133 11,999 431.2%
Investment income 63,744 10,105
Other Program Revenue 11,481 13.6%
General Revenues (Investment income) 6,642 6,252 6.2%
Total Revenues 560 (1.6%)
Expenses: 551 9.1%
Salaries and Benefits 635,349 582,103 13.7%
Program Expenditures 15.3%
Other Operating Costs 38,381 33,750 (1.9%)
Depreciation 413,871 358,957 5.7%
NY State Assessments 38.6%
Payment to NYS 5,376 5,480 (100.0%)
1,795 1,699 (5.5%)
Total Expenses 10,763 7,763 95.6%
Increase in Net Assets 90,000
- 497,649
470,186 $84,455
$165,163
4
46
New York State Energy Research and Development Authority
(A Component Unit of the State of New York)
Management’s Discussion and Analysis
For the Year Ended March 31, 2011
Unaudited
System Revenues State Expenses
Benefits appropriation
Charge Third-party Program
45.6% 5.0% funding expenditures
1.0%
Allowance 88.0%
Proceeds
Investment Salaries &
15.6% income benefits
1.9%
8.2%
Federal grants NYS
10.0% assessments
2.3%
Other Renewable Depreciation Other
1.1% Portfolio 0.4% operating costs
Standard 1.1%
19.8%
Total Revenue increased 9.1% from $582.1 million to $635.4 million. State appropriation revenue decreased $17.7 million
(35.6%) primarily as a result of a non-recurring appropriation recognized in FY2009-10 for the construction of a building at
the Saratoga Technology and Energy Park (“STEP”) and a reduction in State Capital Budget appropriation revenues
provided for energy/environmental programs due to a decrease in expenditures during the current fiscal year as compared
to the prior year. System Benefits Charge revenue increased $18.8 million (6.9%) due to higher scheduled collections plus
approximately $7.4 million in net additional energy efficiency funding approved by the Public Service Commission in
various Orders issued under the Energy Efficiency Portfolio Standard proceedings. Renewable Portfolio Standard revenue
increased $38.8 million (44.6%) as a result of utility assessment collections transferred to NYSERDA pursuant to payment
schedules approved by the PSC. Allowance proceeds decreased by $26.9 million (21.4%) primarily due to allowances being
sold at a lower average price and less allowances sold than in the prior year. Third party reimbursements decreased by $13.3
million (68.4%), principally from a decrease in program funding for the administration of multiple gas efficiency programs.
Federal grants revenue increased by $51.7 million (431.2%), primarily due to the timing of American Recovery and
Reinvestment Act (“ARRA”) and other grant expenditures. Total investment income increased by $1.4 million (13.6%),
primarily from an increase in fair market value of investments as a result of changes in market interest rates since the date
the investments were purchased. Other Program Revenues increased by $0.4 million (6.2%) primarily due to non-recurring
revenues for bond closing fees NYSERDA received for refunding certain utility bonds and by an increase in recoupment
revenue offset in part by a reduction in New York Energy $mart program fees.
Total Expenses decreased 5.5% from $497.6 million to $470.2 million. Salaries and benefits increased $4.6 million (13.7%).
Salaries increased $1.3 million (5.5%) primarily due to performance-based salary increases and payments made during the
fiscal year and from an increase in full time equivalents due to filling vacant positions throughout the fiscal year. Fringe
benefits increased $3.3 million (32.3%) primarily due to an increase in pension expense and an increase in the cost associated
with NYSERDA’s postemployment healthcare benefits.. Program Expenditures increased $54.9 million (15.3%) primarily
due to increased expenditures funded through the American Recovery and Reinvestment Act Stimulus grant funds and the
Regional Greenhouse Gas Initiative program. Other Operating Costs decreased $0.1 million (1.9%) primarily from a
decrease in information technology costs associated with the implementation of NYSERDA’s financial management system.
The NY State assessment increased by $3 million (38.6%) over the prior year. NYSERDA made a $90 million payment to
New York State from RGGI allowance proceeds in fiscal year 2009-10 under the State’s deficit reduction legislation. No
payment was required in fiscal year 2010-11.
FINANCIAL ANALYSIS OF FUNDS
Total fund balances for the Governmental Funds increased from $688.8 million to $855.3 million as further described
below:
The New York Energy $mart fund balance, which accounts for the New York Energy $martSM Program funded
through the System Benefits Charge, increased from $360.8 million to $433.4 million due to scheduled collections
including an increase in System Benefits Charge funding authorized by the State Public Service Commission (PSC) for
5
47
New York State Energy Research and Development Authority
(A Component Unit of the State of New York)
Management’s Discussion and Analysis
For the Year Ended March 31, 2011
Unaudited
new programs authorized by the PSC under the Energy Efficiency Portfolio proceedings, which was received, but not
yet spent.
The Renewable Portfolio Standard fund balance increased from $81.7 million to $131.0 million principally as a result of
funds received, but not yet spent.
The RGGI fund balance increased from $43.6 million to $73.3 million principally as a net result of additional allowance
proceeds collected but not yet spent. During the fiscal year $43.7 million was transferred to the GJGNY fund towards
the $112 million funding transfer required in legislation.
The GJGNY fund was established pursuant to legislation enacted in October 2009, to be funded by RGGI
Fund proceeds in the amount of $112 million. The fund balance increased from $68.3 million to $109.2 million
principally from a transfer from the RGGI fund in the amount of $43.7 million.
The Other Programs fund balance decreased from $134.4 million to $108.4 million due primarily to expenditures in the
Con Edison Demand Reduction and Gas Efficiency program with no corresponding program revenues since the
programs are winding down.
CAPITAL ASSET AND DEBT ADMINISTRATION
NYSERDA maintains land, buildings, and furniture and equipment in various locations for its corporate purposes. Total
capital assets as of March 31, 2011 were $14.5 million, net of accumulated depreciation. Capital asset additions for the fiscal
year ended March 31, 2011 were approximately $0.6 million, primarily for technology equipment upgrades and land
improvements at STEP.
Total long-term liabilities increased from $7.0 million to $7.1 million primarily due to an increase in compensated absences
due to larger sick leave accrual balances for current employees as well as an increase in the estimated value of accumulated
sick leave for retirees to cover their share of post employment healthcare costs. The increases were mostly offset by
decreases in mortgage and capital lease obligation debt due to scheduled principal payments.
NYSERDA also issues tax-exempt bonds on a conduit basis on behalf of utility companies to finance certain eligible
projects. As of March 31, 2011, approximately $3.5 billion of bonds are outstanding. These bonds are non-recourse bonds
and as such are not included in NYSERDA’s financial statements.
ECONOMIC FACTORS
A substantial portion of NYSERDA’s annual revenues are derived from sources, whose collection schedules, pursuant to
Orders of the PSC, are currently scheduled to expire as follows: System Benefits Charge funds January 2014, Energy
Efficiency Portfolio Standard (collected through the System Benefits Charge) January 2015, and Renewable Portfolio
Standard funds October 2024.
On behalf of the State, NYSERDA manages the Western New York Nuclear Service Center (West Valley), the site of a
former plant for reprocessing used nuclear fuel. Depending upon the clean-up options selected and agreement on cost
sharing with the federal government, these costs could be substantial. It is anticipated that New York State’s share of future
costs for the West Valley site will be provided by New York State to NYSERDA and will not impact NYSERDA’s current
funding. As permitted by GASB 49, Accounting and Financial Reporting for Pollution Remediation Obligations, no liability has been
recorded in NYSERDA’s financial statements for this contingency due to the expected recoveries from New York State.
NYSERDA’s programs are impacted by a number of factors including, but not limited to, general economic conditions,
energy prices, energy system reliability, and energy technology advancements.
6
48
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