On-bill recovery passed last year and will allow homeowners to easily repay energy efficiency improvement loans through their utility bills. The low-interest loans are part of the state’s new Green Jobs-Green NY program, administered by the New York State Energy Research and Development Authority (NYSERDA), which is using more than $100 million in Regional Greenhouse Gas Initiative funds to leverage up to $5 billion in private capital. Based on a policy blueprint that the Center for Working Families developed in 2008, the program aims to carry out energy efficiency improvements of one million New York homes and businesses and create 60,000 jobs over five years.
How On-Bill Works
Qualified homeowners first receive a comprehensive home energy assessment through the Home Performance with ENERGY STAR program to identify opportunities for cost-effective energy-efficiency improvements. Eligible home energy upgrades typically include insulation and air sealing, energy-efficient furnaces, boilers, water heaters, air conditioners, lighting fixtures and appliances. The homeowner then chooses a contractor accredited by the Building Performance Institute to make the improvements. Once the work is completed to the homeowner’s satisfaction, the state-managed private loan fund will then pay the contractor promptly. The homeowner will pay back the loan as a line item on his or her gas or electric bill, meaning that the utility company acts as a conduit for the repayment.
Two important notes: First, the annual bill cannot exceed the annual amount the homeowner saves in energy costs. Second, homeowners who use on-bill recovery will retain all utility consumer protections, including protections against utility shut-off and credit damage.
To begin the process of using on-bill recovery, homeowners can meet one-on-one with
Public Policy Education Fund (PPEF) staff and sign up for a free or reduced-cost certified home energy assessment. Weekly walk-in sessions are every Wednesday from 1:00—3:00pm and 4:00—6:00pm at the PPEF offices, 477 State Street in Binghamton. To make an appointment, contact PPEF’s Euphemia Martin at 607-723-0110 or
emartin@ppefny.org. More information is available at
http://www.upgradeupstate.org/SouthernTier.
“Everyone’s talking about green jobs as the path to economic recovery, and on-bill is what we needed to make that promise real,” said John Hutchings of the NYS Laborers and member of the Broome County Legislature. “Labor is already working closely with businesses, community groups and elected leaders to make implementation of Green Jobs-Green NY with on-bill recovery a huge success. It’s a win-win-win.”
“For all those homeowners tired of huge heating bills in the winter but unable to take out a personal loan, this program is for you,” said Jonny Norton, owner of Foam-It Insulation, a local BPI certified contractor. “Certified, qualified contractors will be paid by the state to make your home more energy efficient, and then you can make easy, small repayments over time on your monthly utility bill. Annual loan payments won’t exceed projected annual energy bill savings. No gimmicks, no tricks. This really is a no-brainer.”
On-bill recovery is not a personal loan in the traditional sense, as it is transferable to a new owner if the owner and the buyer agree. If this were not the case, the owner would have to pay off the loan before selling the house. On-bill recovery has proven to help expand market demand for home energy improvements in individual municipalities, but New York is the first state to pass this financing mechanism as part of a comprehensive, statewide policy to promote energy efficiency.
“I commend all our state leaders for listening to a broad coalition of labor, businesses and community groups and passing both on-bill recovery and the Green Jobs-Green NY program as a whole,” said Chris Burger of the
Binghamton Regional Sustainability Coalition/
Binghamton Rising. “It’s simple, brilliant and generates a triple win: creating local jobs that can’t be shipped overseas, reducing utility bills for local folks on limited budgets and improving environmental health.”
Workers in New York State and the region are already benefiting from the creation of green jobs by the energy efficiency retrofit industry. In Central NY and the Southern Tier, over 43% of workers in the construction trades are in green jobs working directly to help “buildings and facilities achieve greater energy efficiency, use new technologies or achieve other environmental sustainability goals”,
according to a 2010 survey conducted by the New York State Department of Labor. Of the construction firms with green jobs currently, 46% expect to increase the number of green jobs in their firm in the next year.
Assemblywoman Donna Lupardo (D-Endwell), a cosponsor and major proponent of the legislation, said,“On-bill recovery is a convenient and affordable way to save energy and money. Certified, qualified contractors will be paid upfront by the state to make homes more energy efficient. After, homeowners make easy, small repayments over time on their monthly utility bill.”
David Bradstreet, Cornell Cooperative Extension of Broome County Executive Director, said,“Cornell Cooperative Extension of Broome County is very pleased to be a partner in the Southern Tier Regional Green Jobs Green New York program, which expands our Educational and outreach capacity to promote the benefits of home energy improvements across our entire region. Now with on-bill recovery, these benefits will be accessible to even a larger group of homeowners in these difficult economic times. This is an example of what can be accomplished when a broad coalition of community partners work together. It generates a triple win: creating local jobs, reducing utility bills for local folks on limited budgets, and improving community environmental health.”
Patrick Dundon, owner of The Insulation Man, a local BPI certified contractor, said, “The increased affordability and convenience of home performance work through on-bill recovery saves homeowners money, reduces energy use, and creates much needed jobs right here in the Southern Tier.”
Janet Herzog, Broome County Community College Director of Workforce Development, said, “Broome Community College has been working with local business and the Workforce Investment Board training people in energy-efficiency programs such as Building Analyst, Envelope Professional and Heating Professional. Several local businesses are Building Performance Institute certified and ready to help homeowners reduce their energy bills. The on-bill recovery program will make it possible for more homeowners to take advantage of cost savings by improving their homes utilizing BPI certified contractors.”
Jim Mullins, Broome-Tioga BOCES Director of Instructional Programs, said, “I am excited about the opportunities that on-bill recovery provides for job creation in Broome County, and Broome-Tioga BOCES is ready to provide any training that is needed for this community.”
Additional Background
The City and its many partners above have been working for the last two years to advance three important elements necessary to build a strong energy-efficiency sector in the Southern Tier: strong consumer demand, a trained workforce and access to financing. The Green Jobs-Green NY Program, including on-bill recovery and the potential to leverage billions of dollars in private investment for loans, provides the financing piece of the puzzle, and Binghamton homeowners are strongly encouraged to participate.
To drive consumer demand, prepare the workforce and secure additional financing, Binghamton and its partners have taken the following proactive steps:
- Driving Consumer Demand via Education: The City is using $180,000 in federal funds to contract with Broome Cornell Cooperative Extension to carry out the Binghamton Energy Leadership Program (ELP), which was launched last May and has provided over 40 home energy assessments to residents throughout the City of Binghamton. This program emulates the successful community education effort developed and run by Tompkins Cornell Cooperative Extension for the last three years, a significant reason why Tompkins County now has residential retrofit rates 9 times higher than the state average.
A regional consortium—led by Public Policy Education Fund and including the City, Broome County Cooperative Extension, Tompkins County Cooperative Extension and the Binghamton Regional Sustainability Coalition—secured a nearly $280,000 grant from NYSERDA in 2011 to carry out a two-year outreach and awareness for Green Jobs-Green New York campaign, complementing the Binghamton ELP.
- Workforce Recruitment and Training: Many members of the regional consortium—including BOCES, BCC, Broome-Tioga Work Force NY, labor representatives and local contractors—have been working to create “Green Career Pathways,” a workforce recruitment and training strategy that will connect local residents with local jobs in the energy efficiency sector.
- Securing More Financing: Key members of this consortium were part of the Southern Tier Economic Regional Council Energy Workgroup, and secured support to list energy efficiency as a top priority in the region’s economic development plan. The Southern Tier Economic Council was the only region to submit a specific request for funding for energy-efficiency projects, and won $1 million to carry out an innovative energy efficiency plan for commercial and governmental buildings.
- City Government Leading by Example: Binghamton recently became the first municipality in Broome County to adopt an Energy Climate Action Plan following two years of community participation, research and analysis that provides more than 50 recommendations on how to meet the goal of reducing 2006 greenhouse gas levels by 25% by 2025.
To make an appointment to discuss the Green Jobs Green NY/On-bill Recovery Program, please contact Euphemia Martin of the Public Policy Education Fund at 607-723-0110 or emartin@ppefny.org
To learn more about the City’s efforts around energy-efficiency, please contact Tarik Abdelazim, Director of Planning, Housing and Community Development for the City of Binghamton, at tabdelazim@cityofbinghamton.com or 607-772-7028
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owners a great deal of money, while also making homes more comfortable, creating jobs, conserving scarce resources and protecting our shared environment. The state has passed oneof the most forward-thinking policies in the nation, and the Southern Tier is ready to be a leader on energy efficiency.”
