senate Bill S66004A

Signed By Governor
2009-2010 Legislative Session

Authorizes municipalities to create a municipal sustainable energy loan program

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Archive: Last Bill Status - Signed by Governor


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Nov 19, 2009 signed chap.497
Nov 17, 2009 delivered to governor
Nov 16, 2009 returned to senate
passed assembly
message of necessity - 3 day message
ruling of chair on point of order
ordered to third reading rules cal.682
substituted for a40004a
referred to energy
delivered to assembly
passed senate
message of necessity - 3 day message
ordered to third reading cal.3
print number 66004a
amend and recommit to rules
Nov 10, 2009 referred to rules

Votes

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Bill Amendments

Original
A (Active)
Original
A (Active)

Co-Sponsors

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S66004 - Bill Details

See Assembly Version of this Bill:
A40004A
Law Section:
General Municipal Law
Laws Affected:
Add Art 5-L §§119-ee - 119-gg, Gen Mun L

S66004 - Bill Texts

view summary

Authorizes municipalities to create a municipal sustainable energy loan program using federal grant assistance or federal credit support available for such purpose.

view sponsor memo
BILL NUMBER: S66004

TITLE OF BILL :

An act to amend the general municipal law, in relation to authorizing
municipalities to create a municipal sustainable energy loan program


PURPOSE :

This legislation would authorize municipalities to create sustainable
energy loan programs to provide loans to property owners for the
installation of renewable energy systems and energy efficiency
measures.

SUMMARY OF PROVISIONS :

Section 1 of the bill would create a new Article 5-L of the General
Municipal Law entitled, "Municipal Sustainable Energy Loan Program."
The new article would consist of three new sections of the General
Municipal Law.

A new section 119-ee would set forth legislative findings and
declaration, including that it is the policy of New York State to
achieve statewide energy efficiency and renewable energy goals, reduce
greenhouse gas emissions and mitigate the effect of global climate
change, and advance a clean energy economy. This section would provide
further that to achieve such policy and goals the State must promote
the deployment of renewable energy systems and energy efficiency
measures throughout the state. In addition, it would provide that
municipalities would fulfill an important public purpose by providing
loans to property owners for the installation of renewable energy
systems and energy efficiency measures that advance these policies and
goals.

A new section 119-ff would define terms used in the article, including
"Authority," "Credit support," Energy audit," Energy efficiency
improvement," "Municipal corporation," "Renewable energy system," and
"Renewable energy system feasibility study."

A new section 119-gg would authorize any municipality to establish a
new Sustainable Energy Loan Program using federal grant assistance or
federal credit support. The municipality would be authorized to make
a loan to a property owner to finance the installation of renewable
energy systems and energy efficiency improvements, related energy
audits and renewable energy system feasibility studies, and the
verification of the installation of such systems and improvements.

The loan program would be required to utilize any lists of cost
effective energy efficiency improvements for different building types
that have been approved by the New York State Energy Research and
Development Authority, and to verify and report on the installation
and performance of renewable energy systems and energy efficiency
improvements financed by the program.

Every loan under the program must be repaid over a term not to exceed
the weighted average of the useful life of the renewable energy
systems and energy efficiency improvements. The principal amount of
the loan, excluding interest, would be limited to the lesser of (1)
ten percent of the appraised real property value; or (2) the combined
actual costs of (a) installing the renewable energy system and energy
efficiency improvements (including the costs of necessary equipment,
materials, and labor), (b) each related energy audit and renewable
energy system feasibility study, and ( c) verification of such
renewable energy system and energy efficiency improvements. The

municipal corporation would set a fixed rate of interest for the
repayment of the principal amount of the loan.

Energy efficiency improvements would qualify for a loan if they are
identified in an energy audit and are cost effective. Renewable energy
systems :would qualify for a loan if they are detennined to be
feasible through a renewable energy system feasibility study.

The municipality would have a lien on the real property that is
benefitted by such loan. The municipality would have the option, but
would not be mandated to, require that the loan made under the
sustainable energy program be repaid by the property owner through a
charge on the real property benefitted by such loan. If the
municipality so chooses, such charge would be levied and collected at
the same time and in the same manner as municipal taxes. Such charge
would be separately listed on the tax bill. If the property owner
failed to pay the charge, the county would not be mandated to credit
or otherwise guarantee the amount of such unpaid charge to the
municipal corporation which authorized loan.

Section 2 of the bill would provide for an immediate effective date.

EXISTING LAW :

Chapter 409 of the laws of2009 authorizes town refuse and garbage
districts to provide financing to residential property owners for
energy audits and energy efficiency improvements. Chapter 344 of the
laws of 2009 authorizes the City of Binghamton to create a sustainable
energy loan program similar to this bill. Chapter 336 of the laws of
2009 authorizes the Town of Bedford to create a sustainable energy
loan program similar to this bill. The General Municipal Law does not
currently authorize municipalities to create programs similar to the
program contained in this bill.

LEGISLATIVE HISTORY :

This is a new bill.

STATEMENT IN SUPPORT :

Governor Paterson's 2009 State of the State address outlined his
aggressive plan to meet 45% of New York State's electricity needs
through clean renewable energy and improved energy efficiency by 2015
("45 by 15"). Enabling municipalities to promote and finance the
installation of renewable energy systems and energy efficiency
measures moves the State toward this important goal.

The Governor's "45 by 15" goal advances several policy objectives
important to New Yorkers, including the need to lower energy costs,
create jobs and stimulate the economy, improve energy reliability and
security, and reduce greenhouse gas emissions. By promoting and
facilitating the installation of renewable energy systems and energy
efficiency improvements at residential and commercial properties all
across the State, this bill will help the State achieve the "45 by 15"
goal and will substantially advance our energy policy objectives.

Moreover, several municipalities have begun to implement or are
seeking to implement sustainable energy loan programs. As local
government officials and residents alike seek ways to advance the
State's energy goals, several municipalities have launched programs
similar to the sustainable energy loan program authorized by this
bill. For example, the Town of Babylon has initiated a substantial
program on Long Island, and the City of Binghamton and the Town of
Bedford have obtained specific State legislation to initiate their
programs. This bill would authorize any municipality to enact a local
law to commence a program that advances the State's energy goals by
making energy efficiency improvements and renewable energy systems
more affordable to all property owners.

Finally, this bill would also assist local governments in applying for
funding made available through the American Recovery and Reinvestment
Act of 2009 ("ARRA"). The United States Department of Energy has
competitive grant opportunities available to local governments that
may be used to support sustainable energy loan programs. The State
improves its chance of obtaining such federal assistance with passage
of this bill because municipalities will be able to demonstrate that
they can leverage the federal funds through use of the sustainable
energy loan program, and maintain the program beyond the life of the
ARRA funds.

BUDGET IMPLICATIONS :

This bill would not have State budget implications.

EFFECTIVE DATE :
This bill would take effect immediately.
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                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

    S. 4                                                        A. 4

                     Twentieth Extraordinary Session

                      S E N A T E - A S S E M B L Y

                            November 10, 2009
                               ___________

IN  SENATE -- Introduced by Sens. THOMPSON, AUBERTINE, BRESLIN, STACHOW-
  SKI, VALESKY, C. JOHNSON, FOLEY, PARKER -- (at request of  the  Gover-
  nor) -- read twice and ordered printed, and when printed to be commit-
  ted to the Committee on Rules

IN  ASSEMBLY -- Introduced by COMMITTEE ON RULES -- (at request of M. of
  A. Sweeney, Cahill,  Englebright,  Hevesi,  Lupardo,  Silver)  --  (at
  request of the Governor) -- read once and referred to the Committee on
  Energy

AN  ACT  to  amend the general municipal law, in relation to authorizing
  municipalities to create a municipal sustainable energy loan program

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1. The general municipal law is amended by adding a new arti-
cle 5-L to read as follows:
                               ARTICLE 5-L
                MUNICIPAL SUSTAINABLE ENERGY LOAN PROGRAM
SECTION 119-EE. LEGISLATIVE FINDINGS AND DECLARATION.
        119-FF. DEFINITIONS.
        119-GG. SUSTAINABLE ENERGY LOAN PROGRAM.
  S 119-EE. LEGISLATIVE FINDINGS AND DECLARATION. THE LEGISLATURE  FINDS
AND  DECLARES  THAT  IT  IS THE POLICY OF THE STATE TO ACHIEVE STATEWIDE
ENERGY EFFICIENCY AND RENEWABLE  ENERGY  GOALS,  REDUCE  GREENHOUSE  GAS
EMISSIONS  AND MITIGATE THE EFFECT OF GLOBAL CLIMATE CHANGE, AND ADVANCE
A CLEAN ENERGY ECONOMY; AND THAT TO ACHIEVE SUCH POLICY  AND  GOALS  THE
STATE MUST PROMOTE THE DEPLOYMENT OF RENEWABLE ENERGY SYSTEMS AND ENERGY
EFFICIENCY  MEASURES THROUGHOUT THE STATE; AND THAT MUNICIPALITIES WOULD
FULFILL AN IMPORTANT PUBLIC  PURPOSE  BY  PROVIDING  LOANS  TO  PROPERTY
OWNERS FOR THE INSTALLATION OF RENEWABLE ENERGY SYSTEMS AND ENERGY EFFI-
CIENCY MEASURES.
  S 119-FF. DEFINITIONS. FOR PURPOSES OF THIS ARTICLE:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
SA                                                         LBD12151-03-9

S. 4                                2                               A. 4

  1.  "AUTHORITY"  MEANS THE NEW YORK STATE ENERGY RESEARCH AND DEVELOP-
MENT AUTHORITY, AS  DEFINED  BY  SUBDIVISION  TWO  OF  SECTION  EIGHTEEN
HUNDRED FIFTY-ONE OF THE PUBLIC AUTHORITIES LAW, OR ITS SUCCESSOR.
  2.  "CREDIT SUPPORT" MEANS AND INCLUDES DIRECT LOANS, LETTERS OF CRED-
IT, LOAN GUARANTEES, AND INSURANCE PRODUCTS;  AND  THE  PURCHASE  OF  OR
COMMITMENT  TO  PURCHASE,  OR  THE  SALE  OF OR COMMITMENT TO SELL, DEBT
INSTRUMENTS, INCLUDING SUBORDINATED SECURITIES.
  3. "ENERGY AUDIT" MEANS A FORMAL EVALUATION OF THE ENERGY  CONSUMPTION
OF  A  PERMANENT  BUILDING  OR  STRUCTURAL IMPROVEMENT TO REAL PROPERTY,
CONDUCTED BY A CONTRACTOR CERTIFIED BY THE AUTHORITY, OR CERTIFIED BY  A
CERTIFYING  ENTITY  APPROVED BY THE AUTHORITY FOR PURPOSES OF THIS ARTI-
CLE, FOR  THE  PURPOSE  OF  IDENTIFYING  APPROPRIATE  ENERGY  EFFICIENCY
IMPROVEMENTS  THAT  COULD  BE  MADE TO THE PROPERTY.  IN ANY CITY WITH A
POPULATION OF ONE MILLION OR MORE, THE CITY MAY, BY LOCAL  LAW,  PROVIDE
FOR  THE  CERTIFICATION OF SUCH CONTRACTORS BASED UPON CRITERIA AT LEAST
AS STRINGENT AS THE STATE-WIDE CRITERIA FOR CERTIFICATION ADOPTED BY THE
AUTHORITY FOR PURPOSES OF THIS ARTICLE.
  4. "ENERGY EFFICIENCY IMPROVEMENT" MEANS AND INCLUDES  ANY  RENOVATION
OR  RETROFITTING  OF  A  BUILDING  TO REDUCE ENERGY CONSUMPTION, SUCH AS
WINDOW AND DOOR REPLACEMENT, LIGHTING, CAULKING,  WEATHERSTRIPPING,  AIR
SEALING,  INSULATION, AND HEATING AND COOLING SYSTEM UPGRADES, AND SIMI-
LAR IMPROVEMENTS, DETERMINED TO BE COST-EFFECTIVE PURSUANT  TO  CRITERIA
ESTABLISHED  BY  THE AUTHORITY. HOWEVER, "ENERGY EFFICIENCY IMPROVEMENT"
SHALL NOT INCLUDE LIGHTING MEASURES OR HOUSEHOLD APPLIANCES THAT ARE NOT
PERMANENTLY FIXED TO REAL PROPERTY.
  5. "MUNICIPAL CORPORATION" MEANS A COUNTY, TOWN, CITY OR VILLAGE.
  6. "RENEWABLE ENERGY SYSTEM" MEANS AN ENERGY GENERATING SYSTEM FOR THE
GENERATION OF ELECTRIC OR THERMAL ENERGY, TO BE USED PRIMARILY  AT  SUCH
PROPERTY,  BY MEANS OF SOLAR THERMAL, SOLAR PHOTOVOLTAIC, WIND, GEOTHER-
MAL, ANAEROBIC DIGESTER GAS-TO-ELECTRICITY SYSTEMS, FUEL CELL  TECHNOLO-
GIES, OR OTHER RENEWABLE ENERGY TECHNOLOGY APPROVED BY THE AUTHORITY NOT
INCLUDING THE COMBUSTION OR PYROLYSIS OF SOLID WASTE.
  7.  "RENEWABLE ENERGY SYSTEM FEASIBILITY STUDY" MEANS A WRITTEN STUDY,
CONDUCTED BY A CONTRACTOR CERTIFIED BY THE AUTHORITY, OR CERTIFIED BY  A
CERTIFYING  ENTITY  APPROVED BY THE AUTHORITY FOR PURPOSES OF THIS ARTI-
CLE, FOR THE PURPOSE OF DETERMINING  THE  FEASIBILITY  OF  INSTALLING  A
RENEWABLE  ENERGY SYSTEM.   IN ANY CITY WITH A POPULATION OF ONE MILLION
OR MORE, THE CITY MAY, BY LOCAL LAW, PROVIDE FOR  THE  CERTIFICATION  OF
SUCH  CONTRACTORS  BASED  UPON  CRITERIA  AT  LEAST  AS STRINGENT AS THE
STATE-WIDE CRITERIA FOR  CERTIFICATION  ADOPTED  BY  THE  AUTHORITY  FOR
PURPOSES OF THIS ARTICLE.
  S  119-GG. SUSTAINABLE ENERGY LOAN PROGRAM. 1. THE LEGISLATIVE BODY OF
ANY MUNICIPAL CORPORATION MAY, BY LOCAL  LAW,  ESTABLISH  A  SUSTAINABLE
ENERGY  LOAN  PROGRAM  USING  FEDERAL GRANT ASSISTANCE OR FEDERAL CREDIT
SUPPORT AVAILABLE FOR THIS PURPOSES.
  2. SUCH PROGRAM MAY MAKE LOANS TO THE OWNERS OF REAL PROPERTY  LOCATED
WITHIN  THE MUNICIPAL CORPORATION TO FINANCE THE INSTALLATION OF RENEWA-
BLE ENERGY SYSTEMS AND ENERGY EFFICIENCY  IMPROVEMENTS,  RELATED  ENERGY
AUDITS  AND RENEWABLE ENERGY SYSTEM FEASIBILITY STUDIES, AND THE VERIFI-
CATION OF THE INSTALLATION OF SUCH SYSTEMS AND IMPROVEMENTS.  NO MUNICI-
PAL CORPORATION SHALL MAKE SUCH A LOAN TO AN OWNER OF PROPERTY THAT  HAS
RECEIVED  A  LOAN  FROM  ANOTHER  MUNICIPAL CORPORATION PURSUANT TO THIS
ARTICLE.
  3.   EACH SUCH LOCAL LAW  ESTABLISHING  THE  SUSTAINABLE  ENERGY  LOAN
PROGRAM  SHALL  PROVIDE  FOR  THE CRITERIA FOR MAKING SUCH LOANS AND THE
TERMS AND CONDITIONS FOR REPAYMENT OF SUCH LOANS.  THE SUSTAINABLE ENER-

S. 4                                3                               A. 4

GY LOAN PROGRAM SHALL USE SUCH LISTS OF COST EFFECTIVE ENERGY EFFICIENCY
IMPROVEMENTS FOR DIFFERENT BUILDING TYPES AS ARE APPROVED BY THE AUTHOR-
ITY.
  4.  THE MUNICIPAL CORPORATION SHALL VERIFY AND REPORT ON THE INSTALLA-
TION AND PERFORMANCE OF RENEWABLE ENERGY SYSTEMS AND  ENERGY  EFFICIENCY
IMPROVEMENTS FINANCED BY THE LOAN PROGRAM IN SUCH FORM AND MANNER AS THE
AUTHORITY MAY ESTABLISH.
  5.  EVERY LOAN MADE UNDER THE SUSTAINABLE ENERGY LOAN PROGRAM SHALL BE
REPAID OVER A TERM NOT TO EXCEED THE WEIGHTED AVERAGE OF THE USEFUL LIFE
OF SUCH SYSTEMS AND IMPROVEMENTS AS DETERMINED BY THE  MUNICIPAL  CORPO-
RATION.    THE  MUNICIPAL CORPORATION SHALL SET A FIXED RATE OF INTEREST
FOR THE REPAYMENT OF THE PRINCIPAL AMOUNT OF EACH LOAN AT THE  TIME  THE
LOAN IS MADE.
  6.  THE  PRINCIPAL AMOUNT OF EACH SUCH LOAN, EXCLUDING INTEREST, SHALL
NOT EXCEED THE LESSER OF TEN PERCENT  OF  THE  APPRAISED  REAL  PROPERTY
VALUE  OR  THE ACTUAL COST OF INSTALLING THE RENEWABLE ENERGY SYSTEM AND
ENERGY EFFICIENCY IMPROVEMENTS, INCLUDING THE COSTS OF NECESSARY  EQUIP-
MENT,  MATERIALS,  AND LABOR, THE COSTS OF EACH RELATED ENERGY AUDIT AND
RENEWABLE ENERGY SYSTEM FEASIBILITY STUDY, AND THE COST OF  VERIFICATION
OF SUCH RENEWABLE ENERGY SYSTEM AND ENERGY EFFICIENCY IMPROVEMENTS.
  7.  NO  SUCH  LOAN  SHALL  BE  MADE FOR ENERGY EFFICIENCY IMPROVEMENTS
UNLESS DETERMINED TO BE APPROPRIATE THROUGH AN ENERGY AUDIT, AND NO SUCH
LOAN SHALL BE MADE FOR A RENEWABLE ENERGY SYSTEM UNLESS DETERMINED TO BE
FEASIBLE THROUGH A RENEWABLE ENERGY SYSTEM FEASIBILITY STUDY.
  8. THE LOAN MADE UNDER  THE  SUSTAINABLE  ENERGY  LOAN  PROGRAM  SHALL
CONSTITUTE A LIEN UPON THE REAL PROPERTY BENEFITTED BY SUCH LOAN.
  9.  THE  MUNICIPAL  CORPORATION  MAY  REQUIRE  THE LOAN MADE UNDER THE
SUSTAINABLE ENERGY LOAN PROGRAM TO  BE  REPAID  BY  THE  PROPERTY  OWNER
THROUGH  A  CHARGE  ON  THE  REAL PROPERTY BENEFITTED BY SUCH LOAN. SUCH
CHARGE SHALL BE ON THE REAL PROPERTY AND SHALL BE LEVIED  AND  COLLECTED
AT  THE  SAME  TIME  AND IN THE SAME MANNER AS MUNICIPAL TAXES, PROVIDED
THAT SUCH CHARGE SHALL  BE  SEPARATELY  LISTED  ON  THE  TAX  BILL,  AND
PROVIDED  FURTHER  THAT IN THE EVENT SUCH CHARGE SHOULD NOT BE PAID IN A
TIMELY MANNER, NO OTHER MUNICIPAL CORPORATION SHALL BE REQUIRED TO CRED-
IT OR OTHERWISE GUARANTEE THE AMOUNT OF SUCH UNPAID CHARGE TO THE MUNIC-
IPAL  CORPORATION  WHICH  AUTHORIZED  THE  LOAN,   NOTWITHSTANDING   ANY
PROVISION OF LAW TO THE CONTRARY.
  S 2. This act shall take effect immediately.

Co-Sponsors

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S66004A (ACTIVE) - Bill Details

See Assembly Version of this Bill:
A40004A
Law Section:
General Municipal Law
Laws Affected:
Add Art 5-L §§119-ee - 119-gg, Gen Mun L

S66004A (ACTIVE) - Bill Texts

view summary

Authorizes municipalities to create a municipal sustainable energy loan program using federal grant assistance or federal credit support available for such purpose.

view sponsor memo
BILL NUMBER: S66004A

TITLE OF BILL :

An act to amend the general municipal law, in relation to authorizing
municipalities to create a municipal sustainable energy loan program


PURPOSE :

This legislation would authorize municipalities to create sustainable
energy loan programs to provide loans to property owners for the
installation of renewable energy systems and energy efficiency
measures.

SUMMARY OF PROVISIONS :

Section 1 of the bill would create a new Article 5-L of the General
Municipal Law entitled, "Municipal Sustainable Energy Loan Program."
The new article would consist of three new sections of the General
Municipal Law.

A new section 119-ee would set forth legislative findings and
declaration, including that it is the policy of New York State to
achieve statewide energy efficiency and renewable energy goals, reduce
greenhouse gas emissions and mitigate the effect of global climate
change, and advance a clean energy economy. This section would provide
further that to achieve such policy and goals the State must promote
the deployment of renewable energy systems and energy efficiency
measures throughout the state. In addition, it would provide that
municipalities would fulfill an important public purpose by providing
loans to property owners for the installation of renewable energy
systems and energy efficiency measures that advance these policies and
goals.

A new section 119-ff would define the following terms used in the
article: authority, credit support, energy audit, energy efficiency
improvement, municipal corporation, renewable energy system, and
renewable energy system feasibility study.

A new section 119-gg would authorize any municipality to establish a
new Sustainable Energy Loan Program using federal grant assistance or
federal credit support. The municipality would be authorized to make a
loan to a property owner to finance the installation of renewable
energy systems and energy efficiency improvements, related energy
audits and renewable energy system feasibility studies, and the
verification of the installation of such systems and improvements.

For purposes of energy audits and renewable energy system feasibility
studies, the bill would allow municipalities to either (1) utilize
lists of contractors certified by the New York State Energy Research
and Development Authority ("NYSERDA"), (2) utilize lists of
contractors certified by an entity (including the municipality)
approved by NYSERDA, or (3) adopt a local law providing for the
certification of contractors based on criteria that are at least as
stringent as the criteria adopted by NYSERDA. Similarly, nothing in
the bill would prevent a municipality from adopting a local law
providing for the certification of contractors that install renewable
energy systems or energy efficiency improvements or, alternatively,
from utilizing NYSERDA lists. However, the loan program would be
required to utilize any lists of cost effective energy efficiency
improvements for different building types that have been approved by
NYSERDA, and to verify and report on the installation and performance
of renewable energy systems and energy efficiency improvements
financed by the program.

Every loan under the program must be repaid over a term not to exceed
the weighted average of the useful life of the renewable energy
systems and energy efficiency improvements. The principal amount of
the loan, excluding interest, would be limited to the lesser of (1)
ten percent of the appraised real property value; or (2) the combined
actual costs of (a) installing the renewable energy system and energy
efficiency improvements (including the costs of necessary equipment,
materials, and labor), (b) each related energy audit and renewable
energy system feasibility study, and ( c) verification of such
renewable energy system and energy efficiency improvements. The
municipal corporation would set a fixed rate of interest for the
repayment of the principal amount of the loan.

Energy efficiency improvements would qualify for a loan if they are
identified in an energy audit and are cost effective. Renewable energy
systems would qualify for a loan if they are determined to be feasible
through a renewable energy system feasibility study.

The municipality would have a lien on the real property that is
benefitted by such loan. The municipality would have the option, but
would not be mandated to, require that the loan made under the
sustainable energy program be repaid by the property owner through a
charge on the real property benefitted by such loan. If the
municipality so chooses, such charge would be levied and collected at
the same time and in the same manner as municipal taxes. Such charge
would be separately listed on the tax bill. If the property owner
failed to pay the charge, the county would not be mandated to credit
or otherwise guarantee the amount of such unpaid charge to the
municipal corporation which authorized the loan.

Section 2 of the bill would provide for an immediate effective date.

EXISTING LAW :

Chapter 409 of the laws of 2009 authorizes town refuse and garbage
districts to provide financing to residential property owners for
energy audits and energy efficiency improvements. Chapter 344 of the
laws of 2009 authorizes the City of Binghamton to create a sustainable
energy loan program similar to this bill. Chapter 336 of the laws of
2009 authorizes the Town of Bedford to create a sustainable energy
loan program similar to this bill. The General Municipal Law does not
currently authorize municipalities to create programs similar to the
program contained in this bill.

LEGISLATIVE HISTORY :

This is a new bill.

STATEMENT IN SUPPORT :

Governor Paterson's 2009 State of the State address outlined his
aggressive plan to meet 45% of New York State's electricity needs
through clean renewable energy and improved energy efficiency by 2015
("45 by 15"). Enabling municipalities to promote and finance the
installation of renewable energy systems and energy efficiency
measures moves the State toward this important goal.

The Governor's "45 by 15" goal advances several policy objectives
important to New Yorkers, including the need to lower energy costs,
create jobs and stimulate the economy, improve energy reliability and
security, and reduce greenhouse gas emissions. By promoting and
facilitating the installation of renewable energy systems and energy
efficiency improvements at residential and commercial properties all
across the State, this bill will help the State achieve the "45 by 15"
goal and will substantially advance our energy policy objectives.

Moreover, several municipalities have begun to implement or are
seeking to implement sustainable energy loan programs. As local
government officials and residents alike seek ways to advance the
State's energy goals, several municipalities have launched programs
similar to the sustainable energy loan program authorized by this
bill. For example, the Town of Babylon has initiated a substantial
program on Long Island, and the City of Binghamton and the Town of
Bedford have obtained specific State legislation to initiate their
programs. This bill would authorize any municipality to enact a local
law to commence a program that advances the State's energy goals by
making energy efficiency improvements and renewable energy systems
more affordable to all property owners.

Finally, this bill would also assist local governments in applying for
funding made available through the American Recovery and Reinvestment
Act of 2009 ("ARRA"). The United States Department of Energy has
competitive grant opportunities available to local governments that
may be used to support sustainable energy loan programs. The State
improves its chance of obtaining such federal assistance with passage
of this bill because municipalities will be able to demonstrate that
they can leverage the federal funds through use of the sustainable
energy loan program, and maintain the program beyond the life of the
ARRA funds.

BUDGET IMPLICATIONS :

This bill would not have State budget implications.

EFFECTIVE DATE :
This bill would take effect immediately.
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                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

    S. 4-A                                                    A. 4-A

                     Twentieth Extraordinary Session

                      S E N A T E - A S S E M B L Y

                            November 10, 2009
                               ___________

IN  SENATE -- Introduced by Sens. THOMPSON, AUBERTINE, BRESLIN, STACHOW-
  SKI, VALESKY, C. JOHNSON, FOLEY, PARKER, ESPADA -- (at request of  the
  Governor)  --  read  twice and ordered printed, and when printed to be
  committed to the Committee on  Rules  --  committee  discharged,  bill
  amended,  ordered reprinted as amended and recommitted to said commit-
  tee

IN ASSEMBLY -- Introduced by COMMITTEE ON RULES -- (at request of M.  of
  A.  Sweeney,  Cahill,  Englebright,  Hevesi, Lupardo, Silver, Bradley,
  Weisenberg, DelMonte) -- (at request of the Governor) -- read once and
  referred to the Committee on  Energy  --  committee  discharged,  bill
  amended,  ordered reprinted as amended and recommitted to said commit-
  tee

AN ACT to amend the general municipal law, in  relation  to  authorizing
  municipalities to create a municipal sustainable energy loan program

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The general municipal law is amended by adding a new  arti-
cle 5-L to read as follows:
                               ARTICLE 5-L
                MUNICIPAL SUSTAINABLE ENERGY LOAN PROGRAM
SECTION 119-EE. LEGISLATIVE FINDINGS AND DECLARATION.
        119-FF. DEFINITIONS.
        119-GG. SUSTAINABLE ENERGY LOAN PROGRAM.
  S  119-EE. LEGISLATIVE FINDINGS AND DECLARATION. THE LEGISLATURE FINDS
AND DECLARES THAT IT IS THE POLICY OF THE  STATE  TO  ACHIEVE  STATEWIDE
ENERGY  EFFICIENCY  AND  RENEWABLE  ENERGY  GOALS, REDUCE GREENHOUSE GAS
EMISSIONS AND MITIGATE THE EFFECT OF GLOBAL CLIMATE CHANGE, AND  ADVANCE
A  CLEAN  ENERGY  ECONOMY; AND THAT TO ACHIEVE SUCH POLICY AND GOALS THE
STATE MUST PROMOTE THE DEPLOYMENT OF RENEWABLE ENERGY SYSTEMS AND ENERGY
EFFICIENCY MEASURES THROUGHOUT THE STATE; AND THAT MUNICIPALITIES  WOULD

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD12151-05-9

S. 4-A                              2                             A. 4-A

FULFILL  AN  IMPORTANT  PUBLIC  PURPOSE  BY  PROVIDING LOANS TO PROPERTY
OWNERS FOR THE INSTALLATION OF RENEWABLE ENERGY SYSTEMS AND ENERGY EFFI-
CIENCY MEASURES.
  S 119-FF. DEFINITIONS. FOR PURPOSES OF THIS ARTICLE:
  1.  "AUTHORITY"  MEANS THE NEW YORK STATE ENERGY RESEARCH AND DEVELOP-
MENT AUTHORITY, AS  DEFINED  BY  SUBDIVISION  TWO  OF  SECTION  EIGHTEEN
HUNDRED FIFTY-ONE OF THE PUBLIC AUTHORITIES LAW, OR ITS SUCCESSOR.
  2.  "CREDIT SUPPORT" MEANS AND INCLUDES DIRECT LOANS, LETTERS OF CRED-
IT, LOAN GUARANTEES, AND INSURANCE PRODUCTS;  AND  THE  PURCHASE  OF  OR
COMMITMENT  TO  PURCHASE,  OR  THE  SALE  OF OR COMMITMENT TO SELL, DEBT
INSTRUMENTS, INCLUDING SUBORDINATED SECURITIES.
  3. "ENERGY AUDIT" MEANS A FORMAL EVALUATION OF THE ENERGY  CONSUMPTION
OF  A  PERMANENT  BUILDING  OR  STRUCTURAL IMPROVEMENT TO REAL PROPERTY,
CONDUCTED BY A CONTRACTOR CERTIFIED BY THE AUTHORITY, OR CERTIFIED BY  A
CERTIFYING  ENTITY  APPROVED BY THE AUTHORITY FOR PURPOSES OF THIS ARTI-
CLE, FOR  THE  PURPOSE  OF  IDENTIFYING  APPROPRIATE  ENERGY  EFFICIENCY
IMPROVEMENTS  THAT  COULD  BE  MADE TO THE PROPERTY.  A MUNICIPAL CORPO-
RATION MAY, BY LOCAL LAW, PROVIDE FOR THE CERTIFICATION OF SUCH CONTRAC-
TORS BASED UPON CRITERIA AT LEAST AS STRINGENT AS THE STATE-WIDE  CRITE-
RIA  FOR  CERTIFICATION  ADOPTED  BY  THE AUTHORITY FOR PURPOSES OF THIS
ARTICLE.
  4. "ENERGY EFFICIENCY IMPROVEMENT" MEANS AND INCLUDES  ANY  RENOVATION
OR  RETROFITTING  OF  A  BUILDING  TO REDUCE ENERGY CONSUMPTION, SUCH AS
WINDOW AND DOOR REPLACEMENT, LIGHTING, CAULKING,  WEATHERSTRIPPING,  AIR
SEALING,  INSULATION, AND HEATING AND COOLING SYSTEM UPGRADES, AND SIMI-
LAR IMPROVEMENTS, DETERMINED TO BE COST-EFFECTIVE PURSUANT  TO  CRITERIA
ESTABLISHED  BY  THE AUTHORITY. HOWEVER, "ENERGY EFFICIENCY IMPROVEMENT"
SHALL NOT INCLUDE LIGHTING MEASURES OR HOUSEHOLD APPLIANCES THAT ARE NOT
PERMANENTLY FIXED TO REAL PROPERTY.
  5. "MUNICIPAL CORPORATION" MEANS A COUNTY, TOWN, CITY OR VILLAGE.
  6. "RENEWABLE ENERGY SYSTEM" MEANS AN ENERGY GENERATING SYSTEM FOR THE
GENERATION OF ELECTRIC OR THERMAL ENERGY, TO BE USED PRIMARILY  AT  SUCH
PROPERTY,  BY MEANS OF SOLAR THERMAL, SOLAR PHOTOVOLTAIC, WIND, GEOTHER-
MAL, ANAEROBIC DIGESTER GAS-TO-ELECTRICITY SYSTEMS, FUEL CELL  TECHNOLO-
GIES, OR OTHER RENEWABLE ENERGY TECHNOLOGY APPROVED BY THE AUTHORITY NOT
INCLUDING THE COMBUSTION OR PYROLYSIS OF SOLID WASTE.
  7.  "RENEWABLE ENERGY SYSTEM FEASIBILITY STUDY" MEANS A WRITTEN STUDY,
CONDUCTED BY A CONTRACTOR CERTIFIED BY THE AUTHORITY, OR CERTIFIED BY  A
CERTIFYING  ENTITY  APPROVED BY THE AUTHORITY FOR PURPOSES OF THIS ARTI-
CLE, FOR THE PURPOSE OF DETERMINING  THE  FEASIBILITY  OF  INSTALLING  A
RENEWABLE  ENERGY  SYSTEM.    A MUNICIPAL CORPORATION MAY, BY LOCAL LAW,
PROVIDE FOR THE CERTIFICATION OF SUCH CONTRACTORS BASED UPON CRITERIA AT
LEAST AS STRINGENT AS THE STATE-WIDE CRITERIA FOR CERTIFICATION  ADOPTED
BY THE AUTHORITY FOR PURPOSES OF THIS ARTICLE.
  S  119-GG. SUSTAINABLE ENERGY LOAN PROGRAM. 1. THE LEGISLATIVE BODY OF
ANY MUNICIPAL CORPORATION MAY, BY LOCAL  LAW,  ESTABLISH  A  SUSTAINABLE
ENERGY  LOAN  PROGRAM  USING  FEDERAL GRANT ASSISTANCE OR FEDERAL CREDIT
SUPPORT AVAILABLE FOR THIS PURPOSE.
  2. SUCH PROGRAM MAY MAKE LOANS TO THE OWNERS OF REAL PROPERTY  LOCATED
WITHIN  THE MUNICIPAL CORPORATION TO FINANCE THE INSTALLATION OF RENEWA-
BLE ENERGY SYSTEMS AND ENERGY EFFICIENCY  IMPROVEMENTS,  RELATED  ENERGY
AUDITS  AND RENEWABLE ENERGY SYSTEM FEASIBILITY STUDIES, AND THE VERIFI-
CATION OF THE INSTALLATION OF SUCH SYSTEMS AND IMPROVEMENTS.  NO MUNICI-
PAL CORPORATION SHALL MAKE SUCH A LOAN TO AN OWNER OF PROPERTY THAT  HAS
RECEIVED  A  LOAN  FROM  ANOTHER  MUNICIPAL CORPORATION PURSUANT TO THIS
ARTICLE.

S. 4-A                              3                             A. 4-A

  3.   EACH SUCH LOCAL LAW  ESTABLISHING  THE  SUSTAINABLE  ENERGY  LOAN
PROGRAM  SHALL  PROVIDE  FOR  THE CRITERIA FOR MAKING SUCH LOANS AND THE
TERMS AND CONDITIONS FOR REPAYMENT OF SUCH LOANS.  THE SUSTAINABLE ENER-
GY LOAN PROGRAM SHALL USE SUCH LISTS OF COST EFFECTIVE ENERGY EFFICIENCY
IMPROVEMENTS FOR DIFFERENT BUILDING TYPES AS ARE APPROVED BY THE AUTHOR-
ITY.
  4.  THE MUNICIPAL CORPORATION SHALL VERIFY AND REPORT ON THE INSTALLA-
TION AND PERFORMANCE OF RENEWABLE ENERGY SYSTEMS AND  ENERGY  EFFICIENCY
IMPROVEMENTS FINANCED BY THE LOAN PROGRAM IN SUCH FORM AND MANNER AS THE
AUTHORITY MAY ESTABLISH.
  5.  EVERY LOAN MADE UNDER THE SUSTAINABLE ENERGY LOAN PROGRAM SHALL BE
REPAID OVER A TERM NOT TO EXCEED THE WEIGHTED AVERAGE OF THE USEFUL LIFE
OF SUCH SYSTEMS AND IMPROVEMENTS AS DETERMINED BY THE  MUNICIPAL  CORPO-
RATION.    THE  MUNICIPAL CORPORATION SHALL SET A FIXED RATE OF INTEREST
FOR THE REPAYMENT OF THE PRINCIPAL AMOUNT OF EACH LOAN AT THE  TIME  THE
LOAN IS MADE.
  6.  THE  PRINCIPAL AMOUNT OF EACH SUCH LOAN, EXCLUDING INTEREST, SHALL
NOT EXCEED THE LESSER OF TEN PERCENT  OF  THE  APPRAISED  REAL  PROPERTY
VALUE  OR  THE ACTUAL COST OF INSTALLING THE RENEWABLE ENERGY SYSTEM AND
ENERGY EFFICIENCY IMPROVEMENTS, INCLUDING THE COSTS OF NECESSARY  EQUIP-
MENT,  MATERIALS,  AND LABOR, THE COSTS OF EACH RELATED ENERGY AUDIT AND
RENEWABLE ENERGY SYSTEM FEASIBILITY STUDY, AND THE COST OF  VERIFICATION
OF SUCH RENEWABLE ENERGY SYSTEM AND ENERGY EFFICIENCY IMPROVEMENTS.
  7.  NO  SUCH  LOAN  SHALL  BE  MADE FOR ENERGY EFFICIENCY IMPROVEMENTS
UNLESS DETERMINED TO BE APPROPRIATE THROUGH AN ENERGY AUDIT, AND NO SUCH
LOAN SHALL BE MADE FOR A RENEWABLE ENERGY SYSTEM UNLESS DETERMINED TO BE
FEASIBLE THROUGH A RENEWABLE ENERGY SYSTEM FEASIBILITY STUDY.
  8. THE LOAN MADE UNDER  THE  SUSTAINABLE  ENERGY  LOAN  PROGRAM  SHALL
CONSTITUTE A LIEN UPON THE REAL PROPERTY BENEFITTED BY SUCH LOAN.
  9.  THE  MUNICIPAL  CORPORATION  MAY  REQUIRE  THE LOAN MADE UNDER THE
SUSTAINABLE ENERGY LOAN PROGRAM TO  BE  REPAID  BY  THE  PROPERTY  OWNER
THROUGH  A  CHARGE  ON  THE  REAL PROPERTY BENEFITTED BY SUCH LOAN. SUCH
CHARGE SHALL BE ON THE REAL PROPERTY AND SHALL BE LEVIED  AND  COLLECTED
AT  THE  SAME  TIME  AND IN THE SAME MANNER AS MUNICIPAL TAXES, PROVIDED
THAT SUCH CHARGE SHALL  BE  SEPARATELY  LISTED  ON  THE  TAX  BILL,  AND
PROVIDED  FURTHER  THAT IN THE EVENT SUCH CHARGE SHOULD NOT BE PAID IN A
TIMELY MANNER, NO OTHER MUNICIPAL CORPORATION SHALL BE REQUIRED TO CRED-
IT OR OTHERWISE GUARANTEE THE AMOUNT OF SUCH UNPAID CHARGE TO THE MUNIC-
IPAL  CORPORATION  WHICH  AUTHORIZED  THE  LOAN,   NOTWITHSTANDING   ANY
PROVISION OF LAW TO THE CONTRARY.
  S 2. This act shall take effect immediately.

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