New York's Senator
CHARLES E. SCHUMER

FOR IMMEDIATE RELEASE May 28, 2001

SCHUMER: NEW PROGRAM COULD SAVE NEW YORKERS $150 THIS YEAR WHEN
THEY BUY NEW AIR CONDITIONERS

Senator Unveils Plan To Improve and Expand Little-Known Program That Rewards Consumers Who Replace Old Air Conditioners With Energy Efficient Ones Schumer Calls on Bush to Reverse Decision to Roll Back Air Conditioning Efficiency Standards; Both Changes Combined Could Save Thousands of Megawatts of Electricity

Standing in front of the air conditioner section at PC Richards , US Senator Charles E. Schumer today unveiled a new plan to expand and restructure a new, little-known program which pays New Yorkers to trade in their old air conditioners for new, energy efficient models, and called to double the bounty the program pays to consumers. Schumer said that expansion of the program could save New York City and Long Island households $150 this year when they buy new air conditioners and over $800 in total energy costs, as well as ease pressure on locals power grids, reduce air pollution and potentially help stave off blackouts.

"Aging air conditioners race through electricity and push New Yorkers' sky high summertime energy bills even higher," said Schumer. "While New York's 'Keep Cool' program is a great idea, few people know about it and it's not nearly as easy to participate in as it could - and should - be. By publicizing and improving the program and doubling the bounty for consumers from $75 to $150, we can convince thousands of New Yorkers to trade in their old, inefficient air conditioners for new ones. And in the process, we'll save consumers hundreds of dollars and ease demand on local power grids that are already pushed to the brink."

New York's new "Keep Cool" program, administered by New York State Energy Research and Development Authority (NYSERDA), currently offers consumers a $75 rebate when they trade in their old air conditionersfor more efficient models that feature the "Energy Star" label. But because the program is underfunded and poorly publicized, only 700 New Yorkers participated in the program last year, even though Energy Star air conditioners save consumers money and reduce energy consumption.

Although NYSERDA hopes to replace 25,000 old conditioners with Energy Star units this summer, that number still represents only a small portion of air conditioners sold every year in New York State and a fraction of the estimated 4-5 million air conditioning currently installed in households statewide. In 1996, the most recent year numbers are available, for example, 440,700 units were sold statewide.

In an effort to dramatically increase participation in the program, Schumer called on NYSERDA to double the bounty paid to consumers from $75 to $150, and called on the State to provide the program with direct state funding for the increased bounty, instead of funding it from the Service Benefits Charge: a fee charged to transmission and distribution companies. In addition to the increased reward, Schumer offered a host of suggestions to improve the program's administration and boost participation, including:

1. Improving promotion of the program through increased use of television commercials, Internet, radio advertisements, promotional materials, public service announcements, and print ads, as well as publicizing the program at popular venues such as beaches and ballparks.
2. Streamlining the rebate process by providing consumers with their rebate check when they turn in their old air conditioner, rather than forcing them to wait 4-6 weeks for their old unit to be processed.
3. Expanding the number of places where consumers can drop off old units. The current program only allows consumers to exchange their old air conditioners at a fraction of the locations where they can buy the new, Energy Star units. In Manhattan, for example, 24 retailers sell Energy Star air conditioners, but only two process old units and participate in the rebate program.
4. Instituting a pickup service for old units so that consumers don't have to go through the hassle of transporting their old unit to participating locations.
5. Investigating the idea of enacting a tax holiday for air conditioning, similar to those offered for clothing and apparel to increase public awareness of the program and encourage more consumers to trade in their old units.

Schumer also highlighted the energy savings achievable from increasing participation in the program. While last year's program only saved .14 megawatts (MW) of electricity, this year's program, with 25,000 participants, is expected to save 5 MW of electricity, which could be the difference between reliable power and a flickering light on extremely hot days. If the program expanded to serve 250,000 participants, energy demand would be reduced by 50 megawatts (MW)- savings which could provide power grids in New York City and across the state with an important cushion during times of peak energy usage. The ten new temporary generators being installed in New York City each produce approximately 50 megawatts of power.

In addition to the changes to the state program, Schumer called on the Bush Administration to boost its effort to make all air conditioners more efficient. The Clinton Administration issued new standards last year that would require air conditioning manufacturers to increase the energy efficiency of all new units by 30% by 2006. The move was intended to combat dramatic increases in energy use, which has risen over 35% in the residential sector since 1987 and is expected to rise over 50% by 2006. The product of years of evaluation and consultation, the new standards have broad support, from officials in Texas, California and Washington to several electric utilities to consumer groups. Specifically, Schumer urged Bush not to scale back energy efficiency standards approved last year by the Clinton Administration that would require new air conditioners to be 30 percent more efficient than the current minimum standard. Bush has announced that he would reduce the increase to 20 percent, even though the new standards have even been endorsed by air conditioner maker Goodman Manufacturing.

"This decision sacrifices thousands of megawatts of power, and in the wake of California and on the brink of a national energy crisis, the last thing we should do is roll back standards that would decrease energy consumption and lower costs for consumers in New York and across the nation," said Schumer. "When keeping the higher standard is even supported by the nation's second-largest air conditioning manufacturer, it's clear that we need tougher standards to help keep prices down and power flowing."

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