S T A T E O F N E W Y O R K
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5998
2009-2010 Regular Sessions
I N A S S E M B L Y
February 23, 2009
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Introduced by M. of A. THIELE -- read once and referred to the Committee
on Local Governments
AN ACT to amend the general municipal law and the local finance law, in
relation to financing of the installation of renewable energy sources
or energy efficient improvements in the Peconic Bay region
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 2-A to read as follows:
ARTICLE 2-A
FINANCE OF THE INSTALLATION OF RENEWABLE ENERGY SOURCES OR
ENERGY EFFICIENCY IMPROVEMENTS IN THE PECONIC BAY REGION
SECTION 27. LEGISLATIVE FINDINGS.
27-A. DEFINITIONS.
27-B. CONTRACTUAL ASSESSMENTS.
27-C. REPORT.
27-D. PURCHASE AND INSTALLATION.
27-E. LIENS.
S 27. LEGISLATIVE FINDINGS. THE LEGISLATURE FINDS THAT ENERGY CONSERVA-
TION EFFORTS, INCLUDING THE PROMOTION OF ENERGY EFFICIENCY IMPROVEMENTS
TO RESIDENTIAL, COMMERCIAL, INDUSTRIAL, OR OTHER REAL PROPERTY ARE
NECESSARY TO ADDRESS THE ISSUE OF GLOBAL CLIMATE CHANGE.
THE UPFRONT COST OF MAKING RESIDENTIAL, COMMERCIAL, INDUSTRIAL, OR
OTHER REAL PROPERTY MORE ENERGY EFFICIENT PREVENTS MANY PROPERTY OWNERS
FROM MAKING THOSE IMPROVEMENTS. TO MAKE THOSE IMPROVEMENTS MORE AFFORDA-
BLE AND TO PROMOTE THE INSTALLATION OF THOSE IMPROVEMENTS, IT IS NECES-
SARY TO AUTHORIZE A PROCEDURE FOR AUTHORIZING ASSESSMENTS TO FINANCE THE
COST OF ENERGY EFFICIENCY IMPROVEMENTS.
THE LEGISLATURE DECLARES THAT A PUBLIC PURPOSE WILL BE SERVED BY A
PILOT PROGRAM AUTHORIZING A CONTRACTUAL ASSESSMENT PROGRAM THAT PROVIDES
THE GOVERNING BODY OF ANY TOWN IN THE PECONIC BAY REGION WITH THE
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02990-01-9
A. 5998 2
AUTHORITY TO FINANCE THE INSTALLATION OF DISTRIBUTED GENERATION RENEWA-
BLE ENERGY SOURCES AND ENERGY EFFICIENCY IMPROVEMENTS THAT ARE PERMA-
NENTLY FIXED TO RESIDENTIAL, COMMERCIAL, INDUSTRIAL, OR OTHER REAL PROP-
ERTY.
IT IS ALSO THE INTENT OF THE LEGISLATURE THAT THIS ARTICLE SHALL BE
USED TO FINANCE THE INSTALLATION OF DISTRIBUTED GENERATION RENEWABLE
ENERGY SOURCES OR ENERGY EFFICIENCY IMPROVEMENTS THAT ARE PERMANENTLY
FIXED TO RESIDENTIAL, COMMERCIAL, INDUSTRIAL, OR OTHER REAL PROPERTY.
THIS ARTICLE SHALL NOT BE USED TO FINANCE FACILITIES FOR PARCELS WHICH
ARE UNDERGOING DEVELOPMENT. THIS ARTICLE SHALL NOT BE USED TO FINANCE
THE PURCHASE OR INSTALLATION OF APPLIANCES THAT ARE NOT PERMANENTLY
FIXED TO RESIDENTIAL, COMMERCIAL, INDUSTRIAL, OR OTHER REAL PROPERTY.
ASSESSMENTS MAY BE LEVIED PURSUANT TO THIS ARTICLE ONLY WITH THE FREE
AND WILLING CONSENT OF THE OWNER OF EACH LOT OR PARCEL ON WHICH AN
ASSESSMENT IS LEVIED AT THE TIME THE ASSESSMENT IS LEVIED.
S 27-A. DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE, THE FOLLOWING
TERMS SHALL HAVE THE FOLLOWING MEANINGS:
1. "LOCAL GOVERNMENT" SHALL MEAN A TOWN IN THE PECONIC BAY REGION.
2. "GOVERNING BOARD" SHALL MEAN THE TOWN BOARD.
3. "PECONIC BAY REGION" SHALL MEAN THE TOWNS OF EAST HAMPTON RIVER-
HEAD, SHELTER ISLAND, SOUTHAMPTON, AND SOUTHOLD, IN THE COUNTY OF
SUFFOLK.
4. "RENEWABLE ENERGY SOURCES AND ENERGY EFFICIENT IMPROVEMENTS" SHALL
MEAN SOLAR THERMAL, PHOTOVOLTAIC, WIND, HYDROELECTRIC, GEOTHERMAL,
GEOTHERMAL GROUND SOURCE HEAT, TIDAL ENERGY, WAVE ENERGY, OCEAN THERMAL,
AND FUEL CELLS UTILIZING RENEWABLE FUELS AND IMPROVEMENTS WHICH RESULT
IN ENERGY CONSERVATION AND EFFICIENCY.
S 27-B. CONTRACTUAL ASSESSMENTS. 1. THE GOVERNING BOARD OF ANY LOCAL
GOVERNMENT MAY DETERMINE THAT IT WOULD BE IN THE PUBLIC INTEREST TO
DESIGNATE AN AREA WITHIN THE LOCAL GOVERNMENT, WHICH MAY ENCOMPASS THE
ENTIRE LOCAL GOVERNMENT OR A LESSER PORTION, WITHIN WHICH THE LOCAL
GOVERNMENT AND PROPERTY OWNERS MAY ENTER INTO CONTRACTUAL ASSESSMENTS TO
FINANCE THE INSTALLATION OF RENEWABLE ENERGY SOURCES OR ENERGY EFFICIEN-
CY IMPROVEMENTS THAT ARE PERMANENTLY FIXED TO REAL PROPERTY PURSUANT TO
THIS ARTICLE.
2. THE GOVERNING BOARD SHALL MAKE THESE DETERMINATIONS BY ADOPTING A
LOCAL LAW. THE LOCAL LAW SHALL INCLUDE A STATEMENT THAT THE LOCAL
GOVERNMENT PROPOSES TO MAKE CONTRACTUAL ASSESSMENT FINANCING AVAILABLE
TO PROPERTY OWNERS, SHALL IDENTIFY THE KINDS OF RENEWABLE ENERGY SOURCES
OR ENERGY EFFICIENCY IMPROVEMENTS THAT MAY BE FINANCED, SHALL DESCRIBE
THE BOUNDARIES OF THE AREA WITHIN WHICH CONTRACTUAL ASSESSMENTS MAY BE
ENTERED INTO, AND SHALL BRIEFLY DESCRIBE THE PROPOSED ARRANGEMENTS FOR
FINANCING THE PROGRAM. THE LOCAL LAW SHALL STATE THAT IT IS IN THE
PUBLIC INTEREST TO FINANCE THE INSTALLATION OF RENEWABLE ENERGY SOURCES
OR ENERGY EFFICIENCY IMPROVEMENTS, OR BOTH, PURSUANT TO SUBDIVISION ONE
OF THIS SECTION IF APPLICABLE. THE LOCAL LAW SHALL DIRECT THE PREPARA-
TION OF A REPORT PURSUANT TO SECTION TWENTY-SEVEN-C OF THIS ARTICLE.
S 27-C. REPORT. THE REPORT REQUIRED BY SECTION TWENTY-SEVEN-B OF THIS
ARTICLE SHALL CONTAIN ALL OF THE FOLLOWING:
1. A MAP SHOWING THE BOUNDARIES OF THE TERRITORY WITHIN WHICH CONTRAC-
TUAL ASSESSMENTS ARE PROPOSED TO BE OFFERED.
2. A DRAFT CONTRACT SPECIFYING THE TERMS AND CONDITIONS THAT WOULD BE
AGREED TO BY A PROPERTY OWNER WITHIN THE CONTRACTUAL ASSESSMENT AREA AND
THE LOCAL GOVERNMENT.
3. A STATEMENT OF LOCAL GOVERNMENT POLICIES CONCERNING CONTRACTUAL
ASSESSMENTS INCLUDING ALL OF THE FOLLOWING:
A. 5998 3
(A) IDENTIFICATION OF TYPES OF RENEWABLE ENERGY SOURCES, OR ENERGY
EFFICIENCY IMPROVEMENTS THAT MAY BE FINANCED THROUGH THE USE OF CONTRAC-
TUAL ASSESSMENTS.
(B) IDENTIFICATION OF A LOCAL GOVERNMENT OFFICIAL AUTHORIZED TO ENTER
INTO CONTRACTUAL ASSESSMENTS ON BEHALF OF THE LOCAL GOVERNMENT.
(C) A MAXIMUM AGGREGATE DOLLAR AMOUNT OF CONTRACTUAL ASSESSMENTS.
(D) A METHOD FOR SETTING REQUESTS FROM PROPERTY OWNERS FOR FINANCING
THROUGH CONTRACTUAL ASSESSMENTS IN PRIORITY ORDER IN THE EVENT THAT
REQUESTS APPEAR LIKELY TO EXCEED THE AUTHORIZATION AMOUNT.
4. A PLAN FOR RAISING A CAPITAL AMOUNT REQUIRED TO PAY FOR WORK
PERFORMED PURSUANT TO CONTRACTUAL ASSESSMENTS. THE PLAN MAY INCLUDE
AMOUNTS TO BE ADVANCED BY THE LOCAL GOVERNMENT THROUGH FUNDS AVAILABLE
TO IT FROM ANY SOURCE. THE PLAN MAY INCLUDE THE SALE OF A BOND OR BONDS
OR OTHER FINANCING RELATIONSHIP. THE PLAN SHALL INCLUDE A STATEMENT OF
OR METHOD FOR DETERMINING THE INTEREST RATE AND TIME PERIOD DURING WHICH
CONTRACTING PROPERTY OWNERS WOULD PAY ANY ASSESSMENT. THE PLAN SHALL
PROVIDE FOR ANY RESERVE FUND OR FUNDS. THE PLAN SHALL PROVIDE FOR THE
APPORTIONMENT OF ALL OR ANY PORTION OF THE COSTS INCIDENTAL TO FINANC-
ING, ADMINISTRATION, AND COLLECTION OF THE CONTRACTUAL ASSESSMENT
PROGRAM AMONG THE CONSENTING PROPERTY OWNERS AND THE LOCAL GOVERNMENT.
5. A REPORT CONCERNING THE ADDITIONAL FEES, IF ANY, THAT WILL BE
CHARGED FOR INCORPORATING THE PROPOSED CONTRACTUAL ASSESSMENTS INTO THE
ASSESSMENTS OF THE GENERAL TAXES OF THE LOCAL GOVERNMENT ON REAL PROPER-
TY AND A PLAN FOR FINANCING THE PAYMENT OF THOSE FEES.
S 27-D. PURCHASE AND INSTALLATION. NOTWITHSTANDING ANY OTHER PROVISION
OF THIS ARTICLE, UPON THE WRITTEN CONSENT OF AN AUTHORIZED LOCAL GOVERN-
MENT OFFICIAL, THE PROPOSED ARRANGEMENTS FOR FINANCING THE PROGRAM
PERTAINING TO THE INSTALLATION OF RENEWABLE ENERGY SOURCES OR ENERGY
EFFICIENCY IMPROVEMENTS THAT ARE PERMANENTLY FIXED TO REAL PROPERTY MAY
AUTHORIZE THE PROPERTY OWNER TO PURCHASE DIRECTLY THE RELATED EQUIPMENT
AND MATERIALS FOR THE INSTALLATION OF DISTRIBUTED GENERATION RENEWABLE
ENERGY SOURCES OR ENERGY EFFICIENCY IMPROVEMENTS AND TO CONTRACT DIRECT-
LY FOR THE INSTALLATION OF RENEWABLE ENERGY SOURCES OR ENERGY EFFICIENCY
IMPROVEMENTS THAT ARE PERMANENTLY FIXED TO THE PROPERTY OWNER'S RESIDEN-
TIAL, COMMERCIAL, INDUSTRIAL, OR OTHER REAL PROPERTY.
S 27-E. LIENS. ASSESSMENTS LEVIED PURSUANT TO THIS ARTICLE, AND THE
INTEREST AND ANY PENALTIES THEREON SHALL CONSTITUTE A LIEN AGAINST THE
LOTS AND PARCELS OF LAND ON WHICH THEY ARE MADE, UNTIL THEY ARE PAID.
ARTICLE ELEVEN OF THE REAL PROPERTY TAX LAW APPLIES TO THE LEVY AND
COLLECTION OF ASSESSMENTS LEVIED PURSUANT TO THIS ARTICLE, INSOFAR AS
THOSE PROVISIONS ARE NOT IN CONFLICT WITH THE PROVISIONS OF THIS ARTI-
CLE, INCLUDING, BUT NOT LIMITED TO, THE COLLECTION OF ASSESSMENTS IN THE
SAME MANNER AND AT THE SAME TIME AS THE GENERAL TAXES OF THE LOCAL
GOVERNMENT ON REAL PROPERTY ARE PAYABLE AND ANY PENALTIES AND REMEDIES
AND LIEN PRIORITIES IN THE EVENT OF DELINQUENCY AND DEFAULT.
S 2. Paragraph a of section 11.00 of the local finance law is amended
by adding a new subdivision 104 to read as follows:
104. RENEWABLE ENERGY SOURCES OR ENERGY EFFICIENCY IMPROVEMENTS. THE
ACQUISITION AND INSTALLATION OF RENEWABLE ENERGY SOURCES OR ENERGY EFFI-
CIENCY IMPROVEMENTS AS PROVIDED FOR IN ARTICLE TWO-A OF THE GENERAL
MUNICIPAL LAW, THIRTY YEARS.
S 3. This act shall take effect on the one hundred eightieth day after
it shall have become a law.