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

                                  8388

                            I N  S E N A T E

                              June 28, 2010
                               ___________

Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
  printed to be committed to the Committee on Rules

AN ACT to amend the public service law, the public authorities law,  and
  the  real  property  law,  in  relation  to  green jobs-green New York
  on-bill financing

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

  Section  1.  Section  2 of the public service law is amended by adding
three new subdivisions 28, 29 and 30 to read as follows:
  28. THE TERM "CAPITAL IMPROVEMENTS  AND  FIXTURES  TO  PROMOTE  ENERGY
EFFICIENCY,"  WHEN  USED  IN THIS CHAPTER, MEANS REPAIRS AND UPGRADES TO
BUILDINGS, BUILDING SYSTEMS,  FIXTURES  AND  MAJOR  APPLIANCES  FOR  THE
PURPOSE  OF  REDUCING THE CONSUMPTION OF ELECTRICITY, GAS, OIL AND OTHER
FUELS, AS DEEMED ELIGIBLE UNDER THE GREEN JOBS-GREEN NEW YORK PROGRAM BY
THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT  AUTHORITY,  SUCH  AS
WINDOW  AND  DOOR REPLACEMENT, LIGHTING, CAULKING, WEATHERSTRIPPING, AIR
SEALING, INSULATION, AND HEATING AND COOLING SYSTEM UPGRADES, AND  SIMI-
LAR IMPROVEMENTS. WITH RESPECT TO ONE TO FOUR FAMILY RESIDENTIAL PROPER-
TIES,  THE  TERM  "ENERGY EFFICIENCY IMPROVEMENT" MAY INCLUDE ANY HEALTH
AND SAFETY RELATED REPAIRS THAT ARE REQUIRED TO BE MADE  IN  CONJUNCTION
WITH  OTHER  ENERGY EFFICIENCY IMPROVEMENTS IN ORDER TO CONFORM WITH THE
STANDARDS OF THE CERTIFYING ENTITY DESCRIBED IN SUBDIVISION FOUR OF THIS
SECTION, HOWEVER, WITH RESPECT TO THE GREEN JOBS-GREEN NEW YORK  ON-BILL
CHARGE  ESTABLISHED  PURSUANT  TO  SECTION  SIXTY-SIX-M OF THIS CHAPTER,
"CAPITAL IMPROVEMENTS AND FIXTURES TO PROMOTE ENERGY  EFFICIENCY"  SHALL
NOT  INCLUDE  LIGHTING  MEASURES  OR  HOUSEHOLD  APPLIANCES THAT ARE NOT
PERMANENTLY FIXED TO REAL PROPERTY.
  29. THE TERM "GREEN JOBS-GREEN NEW YORK ON-BILL CHARGE," WHEN USED  IN
THIS  CHAPTER, MEANS A CHARGE APPEARING ON THE MONTHLY UTILITY BILL OF A
UTILITY CUSTOMER WHO ELECTS TO PARTICIPATE IN THE GREEN  JOBS-GREEN  NEW
YORK  PROGRAM  AND  TO  FINANCE  CAPITAL IMPROVEMENTS UNDER THAT PROGRAM
THROUGH SUCH A CHARGE.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD17891-02-0

              

S. 8388                             2

  30. THE TERM "NYSERDA," WHEN USED IN THIS CHAPTER, MEANS THE NEW  YORK
STATE  ENERGY  RESEARCH  AND  DEVELOPMENT AUTHORITY, PURSUANT TO SECTION
EIGHTEEN HUNDRED FIFTY-TWO OF THE PUBLIC AUTHORITIES LAW.
  S  2.  Paragraph  (a)  of  subdivision  2  of section 32 of the public
service law, as added by chapter 713 of the laws of 1981, is amended  to
read as follows:
  (a) fails to pay charges for any service rendered during the preceding
twelve  months,  INCLUDING ANY GREEN JOBS-GREEN NEW YORK ON-BILL CHARGE,
provided however that the  commission  by  regulations  may  permit  the
termination of service for bills due for service rendered during periods
in  excess  of  twelve months where (i) there was a dispute between such
person and the utility corporation or municipality concerning  the  bill
during  the  twelve month period, (ii) delays in termination are not the
fault of the utility or were due to the culpable conduct of such person,
or (iii) such bills are necessary to adjust estimated bills; or
  S 3. Paragraph (b) of subdivision 6 of  section  18-a  of  the  public
service  law, as added by section 4 of part NN of chapter 59 of the laws
of 2009, is amended to read as follows:
  (b) The  temporary  state  energy  and  utility  service  conservation
assessment shall be equal to two percentum of the utility entity's gross
operating  revenues  derived  from  intrastate utility operations in the
last preceding calendar year, minus the amount, if any, that such utili-
ty entity is assessed pursuant to  subdivisions  one  and  two  of  this
section  for the corresponding state fiscal year period. With respect to
the Long Island power authority, the temporary state energy and  utility
service  conservation assessment shall be equal to one percentum of such
authority's gross operating revenues  derived  from  intrastate  utility
operations  in  the  last  preceding  calendar year. THE TEMPORARY STATE
ENERGY AND UTILITY SERVICE CONSERVATION ASSESSMENT SHALL NOT BE  APPLIED
TO  THE  GREEN  JOBS-GREEN  NEW YORK ON-BILL CHARGE BILLED AND COLLECTED
PURSUANT TO SECTION SIXTY-SIX-M  OF  THIS  CHAPTER.  No  corporation  or
person  subject  to the jurisdiction of the commission only with respect
to safety, or the power authority of the state of  New  York,  shall  be
subject  to  the temporary state energy and utility service conservation
assessment provided for under this subdivision. Utility  entities  whose
gross  operating  revenues  from  intrastate utility operations are five
hundred thousand dollars or less in the preceding  calendar  year  shall
not be subject to the temporary state energy and utility service conser-
vation  assessment.  The  minimum  temporary  state  energy  and utility
service conservation assessment to be billed to any utility entity whose
gross revenues from intrastate utility operations are in excess of  five
hundred  thousand  dollars  in  the preceding calendar year shall be two
hundred dollars.
  S 4.   Subdivision 6 of section 65  of  the  public  service  law,  as
amended  by chapter 713 of the laws of 1981 and paragraph (b-1) as added
by chapter 534 of the laws of 1982, is amended to read as follows:
  6. Service charges prohibited. Every gas corporation shall charge  for
gas supplied a fair and reasonable price. No such corporation shall make
or  impose  an additional charge or fee for service or for the installa-
tion of apparatus or the use  of  apparatus  installed,  except  that  a
charge may be made:
  (a)  where  entry, inspection or examination as authorized by subdivi-
sion nine of this section is denied;
  (b) for reconnecting the service to a person  or  corporation  if  the
service  to  such  person or corporation was disconnected, in accordance

S. 8388                             3

with  applicable  legal  requirements,  for  non-payment  of  bills  for
service; [or]
  (b-1) for expenses reasonably incurred as determined by the commission
in  cases  of  meter tampering and theft of service. Such expenses shall
include, but not be limited to, the cost of investigating, repairing and
replacing meters and pipes, and the cost of moving a meter and  install-
ing it in a secure location[.];
  (c)  for a remote meter reading device upon the request and consent of
the customer; OR
  (D) FOR CAPITAL IMPROVEMENTS AND FIXTURES TO PROMOTE ENERGY EFFICIENCY
PURSUANT TO THE PROGRAM ESTABLISHED IN PARAGRAPH (D) OF SUBDIVISION  ONE
OF SECTION EIGHTEEN HUNDRED NINETY-FOUR OF THE PUBLIC AUTHORITIES LAW.
  S 5. The public service law is amended by adding a new section 66-m to
read as follows:
  S  66-M.  GREEN  JOBS-GREEN NEW YORK ON-BILL CHARGE. 1. THE COMMISSION
SHALL REQUIRE ELECTRIC AND GAS CORPORATIONS TO FILE TARIFFS  TO  PROVIDE
FOR  THE  BILLING  AND  COLLECTION  OF GREEN JOBS-GREEN NEW YORK ON-BILL
CHARGES UTILIZED TO COLLECT PAYMENT OF OBLIGATIONS TO THE NYSERDA RETRO-
FIT  INVESTMENT  FUND  THAT  CUSTOMERS  UNDERTAKE  THROUGH   THE   GREEN
JOBS-GREEN  NEW  YORK  PROGRAM  "PROGRAM", ESTABLISHED PURSUANT TO TITLE
NINE-A OF ARTICLE EIGHT OF THE PUBLIC AUTHORITIES LAW. ELECTRIC AND  GAS
CORPORATIONS  SHALL SEEK FUNDING OPPORTUNITIES PROVIDED UNDER THE AMERI-
CAN RECOVERY AND REINVESTMENT ACT OF TWO THOUSAND NINE TO FUND OR OFFSET
COSTS ASSOCIATED WITH IMPLEMENTING THE PROGRAM. ELECTRIC AND GAS  CORPO-
RATIONS  SHALL  UTILIZE EXISTING ELECTRONIC DATA INTERCHANGE INFRASTRUC-
TURE OR OTHER EXISTING BILLING INFRASTRUCTURE TO IMPLEMENT THE  PROGRAM.
ELECTRIC AND GAS CORPORATIONS WILL BE PERMITTED TO RECOVER THROUGH RATES
THE  COSTS  OF  ALL  NECESSARY AND PRUDENT PROGRAM IMPLEMENTATION COSTS,
INCLUDING COSTS ASSOCIATED WITH  ELECTRONIC  DATA  INTERCHANGE  IMPROVE-
MENTS.    THE  COMMISSION  SHALL WITHIN FORTY-FIVE DAYS OF THE EFFECTIVE
DATE OF THIS SECTION REQUIRE ALL ELECTRIC, STEAM AND/OR GAS CORPORATIONS
TO FILE TARIFFS TO IMPLEMENT THE  PROGRAM  FOR  ALL  ELIGIBLE  CUSTOMERS
WITHIN  THEIR  RESPECTIVE  SERVICE  TERRITORIES  AND  ISSUE  A NOTICE OF
PROPOSED RULE-MAKING ON SUCH TARIFFS. THE  COMMISSION  SHALL  ACT  EXPE-
DITIOUSLY,  WITHIN  THE MINIMUM TIME PERIOD CONSISTENT WITH THE REQUIRE-
MENTS OF THE STATE ADMINISTRATIVE PROCEDURE ACT, TO ISSUE A FINAL  DECI-
SION REGARDING THE GREEN JOBS-GREEN NEW YORK TARIFFS.
  2. THE TARIFFS SHALL PROVIDE:
  (A)  THAT  FULL  ACCESS TO THE BENEFITS OF THE PROGRAM BE AVAILABLE TO
ALL CUSTOMERS THAT MEET STANDARDS FOR RELIABLE UTILITY BILL PAYMENT  AND
CURRENT  GOOD  STANDING  ON  ANY MORTGAGE OBLIGATIONS ON THE PREMISES AS
DETERMINED BY NYSERDA IN ITS CAPACITY AS MANAGER OF THE RETROFIT INVEST-
MENT FUND, AND WHO HOLD PRIMARY OWNERSHIP OR REPRESENT THE PRIMARY OWNER
OR OWNERS OF THE PREMISES, AND WHO HOLD PRIMARY METER ACCOUNT  RESPONSI-
BILITY  OR  REPRESENT  THE  PRIMARY  HOLDER  OR HOLDERS OF METER ACCOUNT
RESPONSIBILITY FOR ALL METERS TO WHICH AN ON-BILL  REPAYMENT  OBLIGATION
IS ATTACHED.
  (B)  THAT  THE  GREEN  JOBS-GREEN  NEW  YORK  ON-BILL  CHARGES FOR ANY
SERVICES PROVIDED AT THE CUSTOMER'S PREMISES SURVIVE CHANGES  IN  OWNER-
SHIP,  TENANCY, OR METER ACCOUNT RESPONSIBILITY, WITH ARREARS AT TIME OF
METER ACCOUNT CLOSURE OR METER TRANSFER REMAINING THE RESPONSIBILITY  OF
THE INCURRING CUSTOMER.
  (C)  THE  THE  PREMISES  OWNER  MAY NOT TRANSFER PRIMARY METER ACCOUNT
RESPONSIBILITY FOR THE INCURRING METER  TO  A  TENANT  WHILE  THE  GREEN
JOBS-GREEN NEW YORK ON-BILL CHARGES SURVIVE.

S. 8388                             4

  (D)  FOR THE DISCONNECTION OF SERVICE FOR NON-PAYMENT OF PROGRAM OBLI-
GATIONS, SUBJECT TO REQUIREMENTS OF ARTICLE TWO OF THIS CHAPTER.
  (E)  THAT  ELECTRIC AND GAS CORPORATIONS SHALL ONLY BE RESPONSIBLE FOR
BILLING AND COLLECTION OF GREEN JOBS-GREEN NEW YORK ON-BILL CHARGES  FOR
SPECIFIC  CUSTOMERS IN THE AMOUNTS AND TIME PERIODS DIRECTED BY NYSERDA,
AND FOR SUCCESSOR CUSTOMERS AT THE SAME PREMISES, WHEN ADVISED BY NYSER-
DA THAT:
  (I) THE SPECIFIC CUSTOMER HAS ENTERED INTO A WRITTEN REPAYMENT  AGREE-
MENT WITH NYSERDA TO PAY SUCH AMOUNTS FOR SUCH TIME PERIODS.
  (II)  THE  REPAYMENT  AGREEMENT  IS  CONSISTENT WITH THE PROVISIONS OF
TITLE NINE-A OF ARTICLE EIGHT OF THE PUBLIC  AUTHORITIES  LAW  AND  WITH
REGULATIONS PROMULGATED PURSUANT TO SUCH TITLE.
  (III)  THE PROGRAM INCLUDES A SUBSTANTIVE PLAN TO PROVIDE FOR CUSTOMER
SERVICE AND RESOLUTION OF CUSTOMER COMPLAINTS, AND TO ACCOUNT FOR DELAYS
AND DEFAULTS IN CUSTOMER PAYMENTS.
  (F) THAT THE UTILITY'S OBLIGATION TO COLLECT GREEN JOBS-GREEN NEW YORK
CUSTOMER REPAYMENTS DOES NOT RESTRICT THE UTILITY'S DISCRETION TO ESTAB-
LISH THE TERMS OF DEFERRED PAYMENT AGREEMENTS OR TO DEFER TERMINATION OF
SERVICE FOR DELINQUENT CUSTOMERS.
  (G) THAT UNDERPAYMENTS OF BILLS BY CUSTOMERS WITH GREEN JOBS-GREEN NEW
YORK ON-BILL CHARGES SHALL BE APPORTIONED BETWEEN THE  GREEN  JOBS-GREEN
NEW  YORK  ON-BILL  CHARGES  AND ALL OTHER CHARGES ON THE BILL, WITH THE
PERCENTAGE OF THE UNDERPAYMENT APPORTIONED TO THE GREEN  JOBS-GREEN  NEW
YORK  ON-BILL  CHARGE  EQUAL  TO THE PERCENTAGE THE GREEN JOBS-GREEN NEW
YORK ON-BILL CHARGE REPRESENTS OF THE TOTAL  BILL.  THAT  WITH  CUSTOMER
CONSENT,  THE  UTILITY  SHALL  PROVIDE  PRIOR  YEAR CUSTOMER BILLING AND
CONSUMPTION DATA TO NYSERDA. IN CASES  WHERE  CUSTOMER  CONSENT  IS  NOT
OBTAINED,  THE  UTILITY  MAY  PROVIDE  AGGREGATE  CENSUS TRACT DATA THAT
INCLUDES THE CUSTOMER'S ADDRESS.
  (H) THAT NYSERDA SHALL  BE  RESPONSIBLE  FOR  THE  RESOLUTION  OF  ANY
CUSTOMER COMPLAINTS REGARDING WORK PERFORMED PURSUANT TO THE PROGRAM AND
THE  DETERMINATION  OF WHETHER GREEN JOBS-GREEN NEW YORK ON-BILL CHARGES
SHOULD BE MODIFIED.  SUCH COMPLAINTS SHALL NOT  BE  COUNTED  IN  UTILITY
CUSTOMER SERVICE PERFORMANCE MECHANISMS APPROVED BY THE COMMISSION.
  (I)  THAT UTILITIES WILL PROVIDE ON THE CUSTOMER'S BILL AN EXPLANATION
OF THE BENEFIT OF THE GREEN JOBS-GREEN NEW YORK RETROFIT THAT INCLUDES A
CALCULATION OF THE AVOIDED COST OF FUEL BASED ON NYSERDA'S PROJECTION OF
SAVINGS OVER PRIOR USAGE ASSOCIATED WITH THE RETROFIT, THE CURRENT  UNIT
COST OF THE UTILITY FUEL, AND AN EXPLANATION THAT BILL LEVELS VARY BASED
ON  ACTUAL  USAGE  EVEN WHEN HOMES ARE UPGRADED TO USE ENERGY MORE EFFI-
CIENTLY.
  (J) THAT UTILITIES WILL INFORM CUSTOMERS AT THE TIME OF ACCOUNT  OPEN-
ING  AND AT LEAST ANNUALLY OF THE AMOUNT AND DURATION OF ANY GREEN JOBS-
GREEN NEW YORK ON-BILL CHARGES AT THE PREMISES FOR PREVIOUSLY  INSTALLED
ENERGY  EFFICIENCY  MEASURES, INCLUDING NYSERDA PROCEDURES FOR DISPUTING
SUCH CHARGES.
  (K) THAT  FOR  CUSTOMERS  WITH  A  LEVELIZED  BILLING  PLAN,  A  GREEN
JOBS-GREEN NEW YORK RETROFIT SHALL TRIGGER AN IMMEDIATE RECALCULATION OF
MONTHLY PAYMENTS UNDER SUCH PLAN, BASED ON NYSERDA PROJECTIONS OF ENERGY
SAVINGS  RESULTING  FROM  THE  INSTALLED  MEASURES  AND EFFECTIVE ON THE
CUSTOMER'S FIRST BILL WITHIN SIXTY DAYS OF COMPLETION OF THE RETROFIT.
  (L) THAT UTILITIES SHALL OFFER DEFERRED PAYMENT  AGREEMENTS  TO  GREEN
JOBS-GREEN  NEW  YORK CUSTOMERS ON THE SAME TERMS AS TO OTHER CUSTOMERS,
REGARDLESS OF THE APPORTIONMENT OF COLLECTED PAYMENTS  TO  BOTH  UTILITY
AND GREEN JOBS-GREEN NEW YORK CHARGES.

S. 8388                             5

  (M)  THAT  UTILITIES  MAY SIMULTANEOUSLY OFFER TO GREEN JOBS-GREEN NEW
YORK ON-BILL REPAYMENT CUSTOMERS ANY AVAILABLE  REBATES  FOR  INDIVIDUAL
RETROFIT  MEASURES, REGARDLESS OF WHETHER SUCH MEASURES ARE PERFORMED IN
THE COURSE OF A GREEN JOBS-GREEN NEW YORK RETROFIT.
  S  6.  Paragraph  (d)  of  subdivision 1 of section 1894 of the public
authorities law, as added by chapter 487 of the laws of 2009, is amended
and a new paragraph (e) is added to subdivision 1 to read as follows:
  (d)  organized  trades  and  their  certification  or   apprenticeship
programs.    The  authority shall specifically solicit applications that
propose to demonstrate the feasibility  of  innovative  financing  mech-
anisms, including but not limited to applications undertaken in partner-
ship  with distribution utilities that propose to demonstrate the feasi-
bility of on-bill financing. The public  service  commission  and  other
appropriate agencies are authorized to coordinate with the authority and
applicants  in  developing  and  implementing proposed demonstrations of
innovative financing mechanisms.  AN  ON-BILL  FINANCING  MECHANISM  FOR
INSTALLATION  OF  ENERGY  EFFICIENCY  MEASURES AND IMPROVEMENTS SHALL BE
ESTABLISHED AS FOLLOWS:
  (1) GREEN JOBS-GREEN NEW YORK PROGRAM  "PROGRAM"  RETROFITS  SHALL  BE
PERFORMED  IN  ACCORDANCE  WITH  RESEARCH-BASED,  INDUSTRY  STANDARDS AS
DETERMINED BY THE AUTHORITY;
  (2) PERFORMANCE OF RETROFIT WORK SHALL MEET STANDARDS FOR  CONTRACTING
AS DETERMINED BY THE AUTHORITY;
  (3) THE AUTHORITY SHALL ONLY PROVIDE ON-BILL FINANCING FOR PACKAGES OF
ENERGY  EFFICIENCY  MEASURES  THAT  IT  DETERMINES TO BE COST-EFFECTIVE.
PACKAGES OF ENERGY EFFICIENCY MEASURES SHALL  BE  DEEMED  COST-EFFECTIVE
IF:
  (A)  BASED UPON THE MOST RECENT CUSTOMER DATA AVAILABLE, ON AN ANNUAL-
IZED BASIS THE MONTHLY ON-BILL REPAYMENT AMOUNT FOR A PACKAGE  OF  MEAS-
URES DOES NOT EXCEED ONE-TWELFTH OF THE SAVINGS PROJECTED TO RESULT FROM
THOSE MEASURES; AND
  (B)  THE  SAVINGS  PROJECTIONS  ARE  BASED  UPON  STANDARDS SET BY THE
AUTHORITY AND THE ESTABLISHED CALCULATIONS FOR PROJECTING ENERGY SAVINGS
DURING AN ENERGY AUDIT ARE ADJUSTED BY THE AUTHORITY NO LESS THAN  BIAN-
NUALLY  USING  DATA FROM AUTHORITY EXPERIENCE WITH ITS ENERGY EFFICIENCY
PROGRAMS AND OTHER COMPARABLE PROGRAMS;
  A PORTION OF THE SAVINGS ACHIEVED BY THE RETROFIT, NOT NECESSARILY ALL
SAVINGS, WILL BE SAVINGS ON THE BILL PROVIDED BY THE UTILITY BILLING AND
COLLECTING THE MONTHLY ON-BILL REPAYMENT;
  (4) THE ON-BILL REPAYMENT PERIOD IS LIMITED SO THAT  THE  CUSTOMER  IS
NOT PAYING FOR MEASURES FOR WHICH THE USEFUL LIFE HAS EXPIRED;
  (5)  COST-EFFECTIVE  RETROFITS  SHALL  NOT BE LIMITED TO MEASURES THAT
SAVE ON THE FUEL DELIVERED BY THE UTILITY THAT IS PROVIDING THE  BILLING
AND COLLECTION SERVICES; AND
  (6)  CALCULATIONS  OF  COST-EFFECTIVENESS  WITH  USE PRICES REASONABLY
AVAILABLE TO THE CUSTOMER, AND COSTS AND SAVINGS TO PARTIES  OTHER  THAN
THE CUSTOMER WILL NOT BE USED TO DETERMINE COST-EFFECTIVENESS.
  (E)  FOR  DETERMINING  THE  COST-EFFECTIVENESS  OF THE PROGRAM, CALCU-
LATIONS SHALL CONSIST OF PROGRAM  EXPENDITURES  SUCH  AS  ADMINISTRATIVE
COSTS,  INTEREST  SUBSIDIES,  MARKETING,  AND  OTHER  COSTS EXCLUSIVE OF
CUSTOMER PAYMENTS, AS COMPARED WITH THE VALUE OF SOCIETAL  AND  ENVIRON-
MENTAL  BENEFITS, SUCH AS POLLUTION AVOIDED, JOBS CREATED, ENERGY SAVED,
IMPROVED NATIONAL SECURITY AND OTHER SOCIETAL BENEFITS.
  S 7. Section 1005 of the public authorities law is amended by adding a
new subdivision 17 to read as follows:

S. 8388                             6

  17. TO PROVIDE ITS MUNICIPAL CUSTOMERS WITH ACCESS  TO  FINANCING  FOR
ENERGY  EFFICIENCY  CAPITAL  IMPROVEMENTS,  BY  ESTABLISHING  AN ON-BILL
FINANCING MECHANISM FOR INSTALLATION OF ENERGY EFFICIENCY  MEASURES  AND
IMPROVEMENTS  IN COOPERATION WITH THE NEW YORK STATE ENERGY RESEARCH AND
DEVELOPMENT   AUTHORITY'S   ("NYSERDA")   IMPLEMENTATION  OF  THE  GREEN
JOBS-GREEN NEW YORK PROGRAM PURSUANT TO NYSERDA'S AUTHORITY UNDER  TITLE
NINE-A OF ARTICLE EIGHT OF THIS CHAPTER. THE ON-BILL FINANCING MECHANISM
SHALL BE ESTABLISHED AS FOLLOWS:
  (A)  GREEN  JOBS-GREEN  NEW  YORK PROGRAM "PROGRAM" RETROFITS SHALL BE
PERFORMED IN  ACCORDANCE  WITH  RESEARCH-BASED,  INDUSTRY  STANDARDS  AS
DETERMINED BY THE AUTHORITY;
  (B)  PERFORMANCE OF RETROFIT WORK SHALL MEET STANDARDS FOR CONTRACTING
AS DETERMINED BY THE AUTHORITY;
  (C) THE AUTHORITY SHALL ONLY PROVIDE ON-BILL FINANCING FOR PACKAGES OF
ENERGY EFFICIENCY MEASURES THAT  IT  DETERMINES  TO  BE  COST-EFFECTIVE.
PACKAGES  OF  ENERGY  EFFICIENCY MEASURES SHALL BE DEEMED COST-EFFECTIVE
IF:
  (1) BASED UPON THE MOST RECENT CUSTOMER DATA AVAILABLE, ON AN  ANNUAL-
IZED  BASIS  THE MONTHLY ON-BILL REPAYMENT AMOUNT FOR A PACKAGE OF MEAS-
URES DOES NOT EXCEED ONE-TWELFTH OF THE SAVINGS PROJECTED TO RESULT FROM
THOSE MEASURES; AND
  (2) THE SAVINGS PROJECTIONS  ARE  BASED  UPON  STANDARDS  SET  BY  THE
AUTHORITY AND THE ESTABLISHED CALCULATIONS FOR PROJECTING ENERGY SAVINGS
DURING  AN ENERGY AUDIT ARE ADJUSTED BY THE AUTHORITY NO LESS THAN BIAN-
NUALLY USING DATA FROM AUTHORITY EXPERIENCE WITH ITS  ENERGY  EFFICIENCY
PROGRAMS AND OTHER COMPARABLE PROGRAMS;
  (D) A PORTION OF THE SAVINGS ACHIEVED BY THE RETROFIT, NOT NECESSARILY
ALL  SAVINGS,  WILL  BE SAVINGS ON THE BILL PROVIDED BY THE AUTHORITY OR
OTHER ENTITY BILLING AND COLLECTING THE MONTHLY ON-BILL REPAYMENT;
  (E) THE ON-BILL REPAYMENT PERIOD IS LIMITED SO THAT  THE  CUSTOMER  IS
NOT PAYING FOR MEASURES FOR WHICH THE USEFUL LIFE HAS EXPIRED;
  (F)  COST-EFFECTIVE  RETROFITS  SHALL  NOT BE LIMITED TO MEASURES THAT
SAVE ON THE FUEL DELIVERED BY THE AUTHORITY OR  OTHER  ENTITY  PROVIDING
THE BILLING AND COLLECTION SERVICES; AND
  (G)  IN TESTS OF COST-EFFECTIVENESS, CALCULATIONS OF COSTS AND SAVINGS
WILL USE PRICES REASONABLY AVAILABLE TO  THE  CUSTOMER,  AND  COSTS  AND
SAVINGS TO PARTIES OTHER THAN THE CUSTOMER WILL NOT BE USED TO DETERMINE
COST-EFFECTIVENESS.
  (H) MUNICIPAL UTILITIES PROVIDING THIS SERVICE SHALL ADHERE TO CONSUM-
ER  PROTECTION  PROVISIONS PURSUANT TO ARTICLE TWO OF THE PUBLIC SERVICE
LAW.
  (I) STANDARDS FOR THE BILLING, COLLECTION AND  CONDITIONS  OF  SERVICE
RELATED TO GREEN JOBS-GREEN NEW YORK REPAYMENTS WILL ADHERE TO THE STAN-
DARDS  ESTABLISHED  IN  SUBDIVISION  TWO  OF  SECTION SIXTY-SIX-M OF THE
PUBLIC SERVICE LAW.
  (J) THE AUTHORITY SHALL ESTABLISH  SUCH  ON-BILL  FINANCING  MECHANISM
WITHIN FORTY-FIVE DAYS OF THE EFFECTIVE DATE OF THIS SUBDIVISION.
  S  8.  Sections 1020-hh, 1020-ii and 1020-jj of the public authorities
law, such sections as renumbered by chapter 433 of the laws of 2009, are
renumbered sections 1020-ii, 1020-jj and  1020-kk,  and  a  new  section
1020-hh is added to read as follows:
  S  1020-HH.  GREEN  JOBS-GREEN  NEW  YORK PROGRAM. THE AUTHORITY SHALL
PROVIDE ITS CUSTOMERS WITH ACCESS TO  FINANCING  FOR  ENERGY  EFFICIENCY
CAPITAL IMPROVEMENTS, BY ESTABLISHING AN ON-BILL FINANCING MECHANISM FOR
INSTALLATION  OF  ENERGY EFFICIENCY MEASURES AND IMPROVEMENTS IN COOPER-
ATION WITH THE NEW YORK STATE ENERGY RESEARCH AND  DEVELOPMENT  AUTHORI-

S. 8388                             7

TY'S ("NYSERDA") IMPLEMENTATION OF THE GREEN JOBS-GREEN NEW YORK PROGRAM
PURSUANT  TO  NYSERDA'S AUTHORITY UNDER TITLE NINE-A OF ARTICLE EIGHT OF
THIS CHAPTER.  THE ON-BILL FINANCING MECHANISM SHALL BE  ESTABLISHED  AS
FOLLOWS:
  (A)  GREEN  JOBS-GREEN  NEW  YORK PROGRAM "PROGRAM" RETROFITS SHALL BE
PERFORMED IN  ACCORDANCE  WITH  RESEARCH-BASED,  INDUSTRY  STANDARDS  AS
DETERMINED BY THE AUTHORITY;
  (B)  PERFORMANCE OF RETROFIT WORK SHALL MEET STANDARDS FOR CONTRACTING
AS DETERMINED BY THE AUTHORITY;
  (C) THE AUTHORITY SHALL ONLY PROVIDE ON-BILL FINANCING FOR PACKAGES OF
ENERGY EFFICIENCY MEASURES THAT  IT  DETERMINES  TO  BE  COST-EFFECTIVE.
PACKAGES  OF  ENERGY  EFFICIENCY MEASURES SHALL BE DEEMED COST-EFFECTIVE
IF:
  (1) BASED UPON THE MOST RECENT CUSTOMER DATA AVAILABLE, ON AN  ANNUAL-
IZED  BASIS  THE MONTHLY ON-BILL REPAYMENT AMOUNT FOR A PACKAGE OF MEAS-
URES DOES NOT EXCEED ONE-TWELFTH OF THE SAVINGS PROJECTED TO RESULT FROM
THOSE MEASURES; AND THE SAVINGS PROJECTIONS ARE BASED UPON STANDARDS SET
BY THE AUTHORITY AND THE ESTABLISHED CALCULATIONS FOR PROJECTING  ENERGY
SAVINGS  DURING  AN  ENERGY  AUDIT ARE ADJUSTED BY THE AUTHORITY NO LESS
THAN BIANNUALLY USING DATA FROM AUTHORITY  EXPERIENCE  WITH  ITS  ENERGY
EFFICIENCY PROGRAMS AND OTHER COMPARABLE PROGRAMS;
  (2) A PORTION OF THE SAVINGS ACHIEVED BY THE RETROFIT, NOT NECESSARILY
ALL  SAVINGS,  WILL  BE SAVINGS ON THE BILL PROVIDED BY THE AUTHORITY OR
OTHER ENTITY BILLING AND COLLECTING THE MONTHLY ON-BILL REPAYMENT;
  (3) THE ON-BILL REPAYMENT PERIOD IS LIMITED SO THAT  THE  CUSTOMER  IS
NOT PAYING FOR MEASURES FOR WHICH THE USEFUL LIFE HAS EXPIRED;
  (4)  COST-EFFECTIVE  RETROFITS  SHALL  NOT BE LIMITED TO MEASURES THAT
SAVE ON THE FUEL DELIVERED BY THE AUTHORITY OR  OTHER  ENTITY  PROVIDING
THE BILLING AND COLLECTION SERVICES; AND
  (5)  IN TESTS OF COST-EFFECTIVENESS, CALCULATIONS OF COSTS AND SAVINGS
WILL USE PRICES REASONABLY AVAILABLE TO  THE  CUSTOMER,  AND  COSTS  AND
SAVINGS TO PARTIES OTHER THAN THE CUSTOMER WILL NOT BE USED TO DETERMINE
COST-EFFECTIVENESS.
  (D)  STANDARDS  FOR  THE BILLING, COLLECTION AND CONDITIONS OF SERVICE
RELATED TO GREEN JOBS-GREEN NEW YORK REPAYMENTS WILL ADHERE TO THE STAN-
DARDS ESTABLISHED IN SUBDIVISION  TWO  OF  SECTION  SIXTY-SIX-M  OF  THE
PUBLIC SERVICE LAW.
  (E)  THE  AUTHORITY  SHALL  ESTABLISH SUCH ON-BILL FINANCING MECHANISM
WITHIN FORTY-FIVE DAYS OF THE EFFECTIVE DATE OF THIS SECTION.
  S 9. Subparagraphs (ii) and (iii) of paragraph (c) of subdivision 1 of
section 1896 of the public authorities law, as added by chapter  487  of
the laws of 2009, are amended to read as follows:
  (ii)  enter  into  contracts  with one or more program implementers to
perform such functions as the authority deems appropriate; [and]
  (iii) ENTER INTO AGREEMENTS WITH CUSTOMERS  AND  WITH  SUCH  STATE  OR
FEDERAL  AGENCIES  AS  NECESSARY  TO DIRECTLY CAPTURE REBATES AND GRANTS
AVAILABLE FOR INDIVIDUAL RETROFIT PROJECTS,  AND  APPLY  SUCH  FUNDS  TO
REPAYMENT OF CUSTOMER LOAN OBLIGATIONS; AND
  (IV) exercise such other powers as are necessary for the proper admin-
istration of the program.
  S  10.  Subparagraphs (ii) and (iii) of paragraph (b) of subdivision 2
of section 1896 of the public authorities law, as added by  chapter  487
of the laws of 2009, are amended to read as follows:
  (ii)  loans [shall not exceed thirteen thousand dollars per applicant]
for approved qualified energy efficiency services for residential struc-
tures SHALL BE LIMITED TO THE COST OF A  PROJECT  DEEMED  COST-EFFECTIVE

S. 8388                             8

WITHIN  A PERIOD OF FIFTEEN YEARS PLUS THE AMOUNT OF ANY GRANT OR REBATE
DIRECTLY RECEIVABLE BY THE AUTHORITY FOR SUCH  PROJECT,  and  SHALL  NOT
EXCEED  twenty-six thousand dollars per applicant for approved qualified
energy  efficiency  services  for  non-residential  structures,  and for
multi-family structures loans shall be  in  amounts  determined  by  the
authority,  provided,  however,  that  the authority shall assure that a
significant  number  of  residential  structures  are  included  in  the
program; [and]
  (iii)  THE CAPITAL AMOUNT TO BE REPAID BY THE CUSTOMER SHALL BE CALCU-
LATED AS THE TOTAL LOAN AMOUNT LESS ANY GRANT OR REBATE FROM  ANY  STATE
OR FEDERAL AGENCY DUE TO THE CUSTOMER PURSUANT TO THE RETROFIT UNDERTAK-
EN THROUGH THE PROGRAM, AND FOR WHICH NYSERDA HAS SECURED THE CUSTOMER'S
PERMISSION TO COLLECT FUNDS DIRECTLY FROM THE ISSUING AGENCY; AND
  (IV)  loans  shall be at interest rates determined by the authority to
be no higher than necessary to make the provision of the qualified ener-
gy efficiency services feasible.
  S 11. Section 242 of the real property law is amended by adding a  new
subdivision 4 to read as follows:
  4.  DISCLOSURE  PRIOR  TO  THE  SALE OF REAL PROPERTY TO WHICH A GREEN
JOBS-GREEN NEW YORK ON-BILL CHARGE APPLIES. ANY PERSON,  FIRM,  COMPANY,
PARTNERSHIP  OR  CORPORATION  OFFERING TO SELL REAL PROPERTY TO WHICH AN
ELECTRIC OR GAS GREEN JOBS-GREEN NEW YORK ON-BILL CHARGE APPLIES  PURSU-
ANT TO SECTION SIXTY-SIX-M OF THE PUBLIC SERVICE LAW SHALL PROVIDE WRIT-
TEN  NOTICE  TO THE PROSPECTIVE PURCHASER OR THE PROSPECTIVE PURCHASER'S
AGENT, STATING AS FOLLOWS:    "THIS  PROPERTY  IS  SUBJECT  TO  A  GREEN
JOBS-GREEN  NEW YORK ON-BILL CHARGE." THE NOTICE SHALL BE PROVIDED PRIOR
TO THE ACCEPTANCE OF AN OFFER TO PURCHASE SUCH REAL  PROPERTY  AND  MUST
STATE  THAT  THE  PURCHASER  MUST ACCEPT THE OBLIGATION TO PAY THE GREEN
JOBS-GREEN NEW YORK ON-BILL CHARGE,  AND  THAT  NEW  YORK  STATE  ENERGY
RESEARCH  AND  DEVELOPMENT AUTHORITY MUST IN WRITING OR BY EMAIL CERTIFY
RECEIPT OF WRITTEN ACCEPTANCE OF THE OBLIGATION BY PURCHASER, BEFORE THE
SALE CAN BE COMPLETED. IN ADDITION, SUCH NOTICE  SHALL  ALSO  STATE  THE
AMOUNT, TERM, AND PURPOSE OF THE ON-BILL CHARGE.
  S  12.  This act shall take effect immediately; provided, however, the
amendments to subdivision 6 of section 18-a of the public  service  law,
made  by  section  three of this act shall not affect the repeal of such
subdivision and shall be deemed repealed therewith.