Assembly Bill A5509

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  5509

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            February 13, 2009
                               ___________

Introduced  by  M.  of  A. ERRIGO, BALL, FINCH, KOLB, McKEVITT, TOBACCO,
  TOWNSEND, WALKER -- Multi-Sponsored by -- M. of A. BACALLES,  BARCLAY,
  BURLING, CALHOUN, CONTE, MAYERSOHN, QUINN -- read once and referred to
  the Committee on Education

AN ACT to amend the state finance law and the education law, in relation
  to the New York state school energy efficiency fund; and providing for
  the repeal of such provisions upon expiration thereof

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

  Section 1. The state finance law is amended by adding  a  new  section
99-q to read as follows:
  S  99-Q.  NEW  YORK  STATE  SCHOOL ENERGY EFFICIENCY FUND. 1. THERE IS
HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE STATE COMPTROLLER AND THE
COMMISSIONER OF EDUCATION A SPECIAL FUND TO BE KNOWN AS  THE  "NEW  YORK
STATE SCHOOL ENERGY EFFICIENCY FUND".
  2.  THE  FUND SHALL CONSIST OF ONE PERCENT OF ALL TAXES COLLECTED FROM
THE SALE OF DISTILLATE AND RESIDUAL NON-RESIDENTIAL FUELS,  AS  PROVIDED
BY  SECTIONS  ONE HUNDRED EIGHTY-TWO AND ONE HUNDRED EIGHTY-TWO-A OF THE
TAX LAW, AND TRANSFERRED TO  SUCH  FUND  PURSUANT  TO  LAW,  ALL  MONIES
REQUIRED  BY  ANY  PROVISION  OF LAW TO BE PAID INTO OR CREDITED TO SUCH
FUND, AND ANY INTEREST EARNINGS WHICH MAY ACCRUE FROM THE INVESTMENT  OF
MONIES IN SUCH FUND. NOTHING CONTAINED IN THIS SECTION SHALL PREVENT THE
STATE  FROM  RECEIVING GRANTS, GIFTS OR BEQUESTS FOR THE PURPOSES OF THE
FUND AS DEFINED IN THIS SECTION  AND  DEPOSITING  THEM  INTO  SUCH  FUND
ACCORDING TO LAW.
  3.  THE COMMISSIONER OF EDUCATION SHALL PROMULGATE ANY NECESSARY RULES
AND REGULATIONS FOR THE APPLICATION AND DISTRIBUTION OF ANY FUNDS PURSU-
ANT TO THIS SECTION. THE COMMISSIONER OF EDUCATION SHALL ADMINISTER  THE
APPLICATION  BASED  GRANT PROGRAM AND DISTRIBUTE FUNDS TO SCHOOLS DURING
THE TWO THOUSAND TEN--TWO THOUSAND ELEVEN AND TWO  THOUSAND  ELEVEN--TWO
THOUSAND TWELVE SCHOOL YEARS.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05823-01-9
              

A. 5509                             2

  4.  THE  COMMISSIONER  OF EDUCATION SHALL DETERMINE THE AMOUNT OF EACH
GRANT BASED LARGELY UPON:
  (A)  THE AMOUNT THAT ACTUAL ENERGY COSTS EXCEED THE AMOUNT BUDGETED BY
THE SCHOOL DISTRICT;
  (B) THE EXTENT OF THE ENERGY CONSERVATION MEASURES TO BE TAKEN BY  THE
DISTRICT TO HELP REDUCE COSTS;
  (C)  THE  ABILITY  OF  THE  SCHOOL DISTRICT TO ABSORB INCREASED ENERGY
COSTS WITHOUT SIGNIFICANTLY REDUCING ACADEMIC PROGRAMS;
  (D) THE IMPACT OF HIGH ENERGY COSTS ON SCHOOL PROPERTY TAXPAYERS; AND
  (E) ANY OTHER CRITERIA DEEMED APPROPRIATE BY SUCH COMMISSIONER.
  5. MONEYS IN THE FUND FOR THE NEW YORK STATE SCHOOL DISTRICTS SHALL BE
KEPT SEPARATE AND SHALL NOT BE COMMINGLED WITH ANY OTHER MONEYS  IN  THE
CUSTODY OF THE COMMISSIONER OF EDUCATION AND THE COMPTROLLER.
  6.  MONEYS  IN  SUCH FUND SHALL BE EXPENDED ONLY TO THE NEW YORK STATE
SCHOOL DISTRICTS.
  7. ALL PAYMENTS FROM SUCH FUND SHALL BE  MADE  BY  THE  DEPARTMENT  OF
EDUCATION  AFTER  AUDIT  AND  WARRANT  OF  THE  COMPTROLLER  ON VOUCHERS
APPROVED BY THE COMMISSIONER OF EDUCATION OR HIS OR HER DESIGNEE.
  S 2. Section 408 of the education law  is  amended  by  adding  a  new
subdivision 7 to read as follows:
  7.  THE  COMMISSIONER MAY PROMULGATE RULES AND REGULATIONS RELATING TO
THE CONTRACTING OF ENERGY EFFICIENCY  IMPROVEMENTS  TO  EXISTING  SCHOOL
BUILDINGS INCLUDING LIGHTING IMPROVEMENTS, AIR CONDITIONING REPLACEMENT,
BOILER  UPGRADES,  TEMPERATURE  CONTROL  UPGRADES,  CHILLER  UPGRADES OR
REPLACEMENT, WINDOW REPLACEMENT  AND  INSULATION  UPGRADES.  SUCH  REGU-
LATIONS SHALL PROVIDE FOR AN APPRAISAL OF ESTIMATES OF THE COST OF RENO-
VATION,  CONSTRUCTION  AND NEW EQUIPMENT AS MAY BE NECESSARY AND LIMITA-
TIONS ON  THE  COST  OF  ACQUISITION  AND  RENOVATION,  IN  TAKING  INTO
CONSIDERATION  THE  OPERATING  COST SAVINGS. SUCH REGULATIONS SHALL ALSO
INCLUDE, BUT NOT BE LIMITED TO:
  A. COST ALLOWANCES FOR ENERGY EFFICIENCY IMPROVEMENTS SHALL NOT EXCEED
ONE HUNDRED PERCENT OF THE COST ALLOWANCES.
  B. IN CASES WHERE A CONTRACTOR GUARANTEES THE PAY BACK  ON  AN  ENERGY
EFFICIENCY  IMPROVEMENT  AS PART OF THE CONTRACT, THE PERIOD OF PROBABLE
USEFUL LIFE SHALL BE FOR THE LENGTH OF THE GUARANTEED PAY BACK.
  S 3. This act shall take effect immediately and shall  expire  and  be
deemed repealed July 1, 2012.