assembly Bill A7611B
Ellen C. Jaffee
Dennis H. Gabryszak
- In Committee
- On Floor Calendar
- Passed Senate
- Passed Assembly
- Delivered to Governor
- Signed/Vetoed by Governor
Authorizes counties, cities, towns and villages to establish green loans programs to provide financing to residential property owners for the purchase and installation of solar energy generating systems and/or wind energy generating systems on such property, and/or for the costs of the performance of an energy efficiency analysis of the dwelling on such property and the completion of energy efficiency improvements upon such dwelling by a licensed contractor; such loans shall be repaid from an annual tax levy on the property; a property owner shall be eligible for only one such loan.
TITLE OF BILL: An act to amend the general municipal law, in relation
to establishing the green loans program to provide financing for the
purchase and installation of residential solar and wind energy generat-
ing systems, and for the performance of improvements to improve the
energy efficiency of residential dwellings
PURPOSE OR GENERAL IDEA OF THE BILLof : authorizes municipalities to
establish green loans programs to provide financing to residential prop-
erty owners for solar and wind energy generating systems and authorizes
the establishment of green homes programs to conduct residential energy
SUMMARY OF PROVISIONS: Defines municipality, residential real property,
residential solar energy generating system and residential wind. energy
generating system. The governing body of any municipality may, by local
law or ordnance, establish a green loans and green homes program. Such a
program shall provide municipal loans and financing to owners of resi-
dential real property within such municipality for all costs or any
portion of the costs of purchasing and installing a residential solar
energy generating system and/or a residential wind energy system upon
the residential real property; and/or the cost of the performance of an
energy efficiency analysis of the dwelling upon residential real proper-
ty and the completion of energy efficiency improvements upon such dwell-
ing by a licensed contractor.
Each such local law or ordinance shall provide for -he terms and condi-
tions for the awarding and repayment of loans and financing for residen-
tial soar energy generating systems and residential wind energy systems;
provided, that all such loans and financing shall be repaid by means of
twenty equal, annual charges imposed upon the subject residential real
property at the same time other municipal real property taxes are
imposed. Every loan issued pursuant to this section shall be subject to
a fixed rate of interest established at the time of the granting of such
Each such local law or ordinance shall provide for terms and conditions
for the awarding and repayment of loans and financing for the perform-
ance of energy efficiency analyses of dwelling upon residential real
property and the completion of energy efficiency improvements upon such
dwellings by certified contractors; provided, that all such loans and
financing shall be repaid at an annual rate equal to the annual energy
savings to the owner of the residential real property as a result of the
energy efficiency improvements performed with the proceeds of the loans
or financing and shall be paid at the same time other municipal real
property taxes are imposed. Every loan issued pursuant to this section
shall be subject to a fixed rate of interest established at the time of
the granting of such loan.
JUSTIFICATION: In his annual State of the State address, Governor Pater-
son outlines his aggressive plan to meet 45% of New York State's elec-
tricity needs through clean renewable energy and improved energy effi-
ciency by 2015. Installation of solar and wind energy systems can be
cost effective for many residential property owners with the existing
state and federal subsidies, yet there are three major obstacles to
widespread adoption of these technologies and this legislation addresses
them at minimal expense to the State. These obstacles are:
the high upfront cost,
the ability to amortize the cost over 20 years,
and, the possibility that those costs will not be recovered when the
property is sold.
By providing access to low cost capital through "Green Loans", the
taxpayers of New York will have access to lower cost capital than they
might realize with traditional financing and preserve their home equity
for other purposes. By amortizing the cost over 20 years, the annual
cost will be less than annual savings, and by attaching the cost to a
property tax, thereby eliminating the risk of recovering the expense
when ownership of the property is transferred. By relying on the credit
worthiness of the municipality and not the homeowner, "Green Loans" can
spark the renewable energy sector and make significant step :oward meet-
ing our goals of "45 by 15".
LEGISLATIVE HISTORY: New bill.
FISCAL IMPLICATIONS: None.
EFFECTIVE DATE: This act shall take effect immediately.
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