Senate Bill S4490A

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

                                 4490--A

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                              April 6, 2011
                               ___________

Introduced  by Sens. MAZIARZ, GRISANTI, PARKER -- read twice and ordered
  printed, and when printed to be committed to the Committee  on  Energy
  and  Telecommunications -- committee discharged, bill amended, ordered
  reprinted as amended and recommitted to said committee

AN ACT to amend the public service law, the public authorities law,  the
  real  property  law,  the administrative code of the city of New York,
  the emergency tenant protection act of nineteen seventy-four  and  the
  emergency  housing  rent  control law, in relation to establishing the
  green jobs-green New York on-bill financing program

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

  Section  1. Subdivision 2 of section 18-a of the public service law is
amended by adding a new paragraph (h) to read as follows:
  (H) ON-BILL FINANCING CHARGES BILLED PURSUANT TO  SECTION  SIXTY-SIX-M
OF  THIS  CHAPTER  SHALL BE EXCLUDED FROM ANY DETERMINATION OF A UTILITY
COMPANY'S GROSS OPERATING REVENUES DERIVED FROM INTRASTATE UTILITY OPER-
ATIONS FOR PURPOSES OF THIS SECTION.
  S 2. Section 33 of the public service law is amended by adding  a  new
subdivision 6 to read as follows:
  6.  IN  THE  EVENT THAT THE RESPONSIBILITY FOR MAKING UTILITY PAYMENTS
HAS BEEN ASSUMED BY OCCUPANTS OF A MULTIPLE DWELLING PURSUANT TO  SUBDI-
VISION  FIVE OF THIS SECTION, SUCH OCCUPANTS SHALL NOT BE BILLED FOR ANY
ARREARS OF ON-BILL FINANCING CHARGES BILLED  AS  SET  FORTH  IN  SECTION
SIXTY-SIX-M  OF  THIS  CHAPTER, WHICH SHALL REMAIN THE RESPONSIBILITY OF
THE INCURRING CUSTOMER.
  S 3. Section 34 of the public service law is amended by adding  a  new
subdivision 3-a to read as follows:
  3-A.  IN  THE  EVENT THAT AN OCCUPANT OF A TWO-FAMILY DWELLING MAKES A
UTILITY PAYMENT PURSUANT TO SUBDIVISION  THREE  OF  THIS  SECTION,  SUCH
OCCUPANTS  SHALL  NOT  BE  BILLED  FOR  ANY ARREARS OF ON-BILL FINANCING
CHARGES BILLED AS SET FORTH IN  SECTION  SIXTY-SIX-M  OF  THIS  CHAPTER,
WHICH SHALL REMAIN THE RESPONSIBILITY OF THE INCURRING CUSTOMER.
  S  4.  Subdivision 1 of section 41 of the public service law, as added
by chapter 713 of the laws of 1981, is amended to read as follows:

              

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10711-04-1

S. 4490--A                          2

  1.  Notwithstanding  any  other  provision  of  law,  EXCEPT   SECTION
SIXTY-SIX-M  OF THIS CHAPTER, no utility corporation or municipality may
charge a residential customer for gas  or  electric  service  which  was
rendered  more than six months prior to the mailing of the first bill to
the  customer  for such service unless the failure of the corporation or
municipality to bill sooner was not due to the  neglect  of  the  corpo-
ration or municipality or was due to the culpable conduct of the custom-
er.  If  the customer remains liable for such service, the utility shall
permit payments to be made under an installment payment plan,  provided,
however,  that the utility or municipality may require prompt payment if
the non-billing resulted from the culpable conduct of the customer.  Any
such  installment  payment  plan  may provide for a downpayment of up to
one-half of the amounts due from the customer, or three  months  average
billing, whichever is less.
  S  5.  Section 42 of the public service law is amended by adding a new
subdivision 3 to read as follows:
  3. THE RIGHTS AND RESPONSIBILITIES OF  RESIDENTIAL  CUSTOMERS  PARTIC-
IPATING  IN  GREEN  JOBS-GREEN  NEW  YORK  ON-BILL FINANCING PURSUANT TO
SECTION SIXTY-SIX-M OF THIS CHAPTER SHALL BE SUBSTANTIALLY COMPARABLE TO
THOSE OF GAS AND ELECTRIC CUSTOMERS NOT PARTICIPATING IN SUCH FINANCING,
AND CHARGES FOR ON-BILL FINANCING SHALL BE TREATED AS CHARGES FOR UTILI-
TY SERVICE FOR THE PURPOSE OF THIS ARTICLE, PROVIDED THAT:
  (A) ALL DETERMINATIONS AND SAFEGUARDS RELATED TO THE  TERMINATION  AND
RECONNECTION  OF SERVICE SHALL APPLY TO ON-BILL FINANCING CHARGES BILLED
BY A UTILITY COMPANY PURSUANT TO SUCH SECTION;
  (B) IN THE EVENT THAT THE RESPONSIBILITY FOR MAKING  UTILITY  PAYMENTS
HAS BEEN ASSUMED BY OCCUPANTS OF A MULTIPLE DWELLING PURSUANT TO SECTION
THIRTY-THREE  OF  THIS  ARTICLE OR BY OCCUPANTS OF A TWO-FAMILY DWELLING
PURSUANT TO SECTION THIRTY-FOUR OF THIS ARTICLE,  SUCH  OCCUPANTS  SHALL
NOT  BE  BILLED  FOR  ANY  ARREARS  OF  ON-BILL FINANCING CHARGES OR ANY
PROSPECTIVE ON-BILL FINANCING CHARGES, WHICH SHALL REMAIN THE  RESPONSI-
BILITY OF THE INCURRING CUSTOMER;
  (C)  DEFERRED  PAYMENT  AGREEMENTS PURSUANT TO SECTION THIRTY-SEVEN OF
THIS ARTICLE SHALL BE AVAILABLE TO CUSTOMERS  PARTICIPATING  IN  ON-BILL
FINANCING  ON THE SAME TERMS AS OTHER CUSTOMERS, AND THE UTILITY COMPANY
SHALL RETAIN THE SAME DISCRETION TO DEFER TERMINATION OF SERVICE AS  FOR
ANY OTHER DELINQUENT CUSTOMER;
  (D)  WHERE  A  CUSTOMER HAS A BUDGET BILLING PLAN OR LEVELIZED PAYMENT
PLAN PURSUANT TO SECTION  THIRTY-EIGHT  OF  THIS  ARTICLE,  THE  UTILITY
COMPANY  SHALL  RECALCULATE  THE PAYMENTS UNDER SUCH PLAN TO REFLECT THE
EFFECTS OF INSTALLING ENERGY EFFICIENCY MEASURES AS SOON AS  PRACTICABLE
AFTER  RECEIPT  OF  INFORMATION ON THE ENERGY AUDIT AND QUALIFIED ENERGY
EFFICIENCY SERVICES SELECTED;
  (E) LATE PAYMENT CHARGES ON UNPAID ON-BILL FINANCING CHARGES SHALL  BE
DETERMINED  AS PROVIDED IN THIS SECTION, OR AS OTHERWISE CONSENTED TO BY
THE CUSTOMER IN THE AGREEMENT FOR  GREEN  JOBS-GREEN  NEW  YORK  ON-BILL
FINANCING  AND  ANY SUCH CHARGES SHALL BE REMITTED TO THE NEW YORK STATE
ENERGY RESEARCH AND DEVELOPMENT AUTHORITY;
  (F) NOTWITHSTANDING THE PROVISIONS  OF  SECTION  FORTY-THREE  OF  THIS
ARTICLE,  WHEN A COMPLAINT IS RELATED SOLELY TO WORK PERFORMED UNDER THE
GREEN JOBS-GREEN NEW YORK  PROGRAM  OR  TO  THE  APPROPRIATE  AMOUNT  OF
ON-BILL FINANCING CHARGES, THE UTILITY COMPANY SHALL ONLY BE REQUIRED TO
INFORM THE CUSTOMER OF THE COMPLAINT HANDLING PROCEDURES OF THE NEW YORK
STATE  ENERGY  RESEARCH  AND  DEVELOPMENT  AUTHORITY, WHICH SHALL RETAIN
RESPONSIBILITY FOR HANDLING SUCH COMPLAINTS, AND SUCH  COMPLAINTS  SHALL

S. 4490--A                          3

NOT  BE  DEEMED  TO  BE  COMPLAINTS  ABOUT  UTILITY SERVICE IN ANY OTHER
COMMISSION ACTION OR PROCEEDING; AND
  (G)  BILLING  INFORMATION  PROVIDED  PURSUANT TO SECTION FORTY-FOUR OF
THIS ARTICLE SHALL INCLUDE INFORMATION  ON  GREEN  JOBS-GREEN  NEW  YORK
ON-BILL FINANCING CHARGES, INCLUDING THE BASIS FOR SUCH CHARGES, AND ANY
INFORMATION  OR  INSERTS  PROVIDED BY THE NEW YORK STATE ENERGY RESEARCH
AND DEVELOPMENT AUTHORITY RELATED THERETO. IN ADDITION, AT LEAST ANNUAL-
LY THE AUTHORITY SHALL PROVIDE THE UTILITY COMPANY WITH INFORMATION  FOR
INCLUSION OR INSERTION IN THE CUSTOMER'S BILL THAT SETS FORTH THE AMOUNT
AND  DURATION OF REMAINING ON-BILL FINANCING CHARGES AND THE AUTHORITY'S
CONTACT INFORMATION AND PROCEDURES  FOR  RESOLVING  CUSTOMER  COMPLAINTS
WITH SUCH CHARGES.
  S  6.  Section 43 of the public service law is amended by adding a new
subdivision 4 to read as follows:
  4. WHEN A COMPLAINT IS RECEIVED BY THE UTILITY COMPANY THAT IS RELATED
TO WORK PERFORMED UNDER THE GREEN JOBS-GREEN NEW YORK PROGRAM OR TO  THE
APPROPRIATE  AMOUNT  OF  ON-BILL  FINANCING CHARGES, THE UTILITY COMPANY
SHALL ONLY BE REQUIRED TO INFORM THE CUSTOMER OF THE COMPLAINT  HANDLING
PROCEDURES OF THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHOR-
ITY,   WHICH   SHALL   RETAIN  SOLE  RESPONSIBILITY  FOR  HANDLING  SUCH
COMPLAINTS, AND SUCH COMPLAINTS SHALL NOT BE  DEEMED  TO  BE  COMPLAINTS
ABOUT UTILITY SERVICE IN ANY OTHER COMMISSION ACTION OR PROCEEDING.  THE
UTILITY  COMPANY  SHALL NOT TERMINATE, DISCONNECT OR SUSPEND THE CUSTOM-
ER'S SERVICE FOR NON-PAYMENT OF THE ON-BILL FINANCING CHARGES DURING THE
PENDENCY OF THE COMPLAINT AND UNTIL FIFTEEN  DAYS  AFTER  THE  NEW  YORK
STATE  ENERGY  RESEARCH  AND  DEVELOPMENT  AUTHORITY INFORMS THE UTILITY
COMPANY THAT THE COMPLAINT HAS BEEN RESOLVED.
  S 7. Paragraph (d) of subdivision  6  of  section  65  of  the  public
service  law, as added by chapter 204 of the laws of 2010, is amended to
read as follows:
  (d) for installation of capital improvements and fixtures  to  promote
energy  efficiency upon the request and consent of the customer, INCLUD-
ING BUT NOT LIMITED TO THE PERFORMANCE OF  QUALIFIED  ENERGY  EFFICIENCY
SERVICES  FOR  CUSTOMERS  PARTICIPATING  IN  GREEN  JOBS-GREEN  NEW YORK
ON-BILL FINANCING PURSUANT TO SECTION SIXTY-SIX-M OF THIS ARTICLE.
  S 8. 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 FINANCING PROGRAM.  1.  (A)
THE  COMMISSION  SHALL  REQUIRE  EACH UTILITY COMPANY TO PROVIDE FOR THE
BILLING AND COLLECTION OF ON-BILL CHARGES FOR PAYMENT OF OBLIGATIONS  OF
ITS  CUSTOMERS  TO  THE  GREEN  JOBS-GREEN  NEW YORK REVOLVING LOAN FUND
ESTABLISHED PURSUANT TO TITLE NINE-A OF  ARTICLE  EIGHT  OF  THE  PUBLIC
AUTHORITIES  LAW.  TO  THE MAXIMUM EXTENT PRACTICABLE, UTILITY COMPANIES
SHALL UTILIZE EXISTING ELECTRONIC  DATA  INTERCHANGE  INFRASTRUCTURE  OR
OTHER  EXISTING  BILLING  INFRASTRUCTURE  TO IMPLEMENT THEIR BILLING AND
COLLECTION RESPONSIBILITIES UNDER THIS SECTION.
  (B) EXCEPT AS PARTICIPATION MAY BE LIMITED BY PARAGRAPH  (G)  OF  THIS
SUBDIVISION,  THIS  PROGRAM SHALL BE AVAILABLE TO CUSTOMERS WHO HAVE MET
THE STANDARDS ESTABLISHED BY THE NEW  YORK  STATE  ENERGY  RESEARCH  AND
DEVELOPMENT  AUTHORITY  FOR PARTICIPATION IN THE ON-BILL FINANCING MECH-
ANISM UNDER THE GREEN JOBS-GREEN NEW YORK PROGRAM AND WHO HAVE  EXECUTED
A  WRITTEN  AGREEMENT  FOR  THE  DELIVERY OF QUALIFIED ENERGY EFFICIENCY
SERVICES UNDER SUCH PROGRAM AND A NOTE OBLIGATING THE CUSTOMER TO  REPAY
THE  NEW  YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY FOR FUNDS
LOANED TO THE CUSTOMER FOR SUCH QUALIFIED  ENERGY  EFFICIENCY  SERVICES;

S. 4490--A                          4

PROVIDED,  HOWEVER,  THAT  SUCH  CUSTOMERS MUST BE THE UTILITY COMPANY'S
CUSTOMER OF RECORD TO WHICH SUCH ON-BILL FINANCING CHARGES WILL APPLY.
  (C)  FOLLOWING  THE  EXPIRATION OF THE CANCELLATION PERIOD PROVIDED IN
SUBDIVISION FOUR OF SECTION EIGHTEEN HUNDRED NINETY-SIX  OF  THE  PUBLIC
AUTHORITIES  LAW,  THE  NEW  YORK  STATE ENERGY RESEARCH AND DEVELOPMENT
AUTHORITY SHALL IDENTIFY TO THE APPROPRIATE UTILITY COMPANY EACH CUSTOM-
ER WHO HAS RECEIVED A LOAN TO BE REPAID THROUGH  THE  ON-BILL  FINANCING
MECHANISM  AND  THE  AMOUNT  OF EACH MONTHLY LOAN REPAYMENT INSTALLMENT.
EACH UTILITY COMPANY SHALL BILL ITS CUSTOMER THAT HAS OBTAINED  A  GREEN
JOBS-GREEN NEW YORK LOAN FOR ENERGY EFFICIENCY IMPROVEMENTS FROM THE NEW
YORK  STATE  ENERGY RESEARCH AND DEVELOPMENT AUTHORITY THE AMOUNT DUE AS
THE ON-BILL FINANCING CHARGES, COMPRISING  THE  MONTHLY  INSTALLMENT  ON
SUCH  LOAN  AND  ANY  LATE PAYMENT CHARGES THEREON DESIGNATED BY THE NEW
YORK STATE ENERGY RESEARCH AND DEVELOPMENT  AUTHORITY.  AT  THE  UTILITY
COMPANY'S  OPTION, THE ON-BILL FINANCING CHARGES MAY BE BILLED SEPARATE-
LY.
  (D) THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY SHALL
DETERMINE WHETHER THE CUSTOMER'S UTILITY COMPANY WILL BILL  THE  ON-BILL
FINANCING  CHARGES  BASED ON THE RELATIVE DOLLAR VALUES OF THE PROJECTED
ENERGY SAVINGS BY ENERGY TYPE. BILLING AND COLLECTION SERVICES SHALL  BE
AVAILABLE  WITHOUT REGARD TO WHETHER THE ENERGY OR FUEL DELIVERED BY THE
UTILITY COMPANY IS THE CUSTOMER'S PRIMARY  ENERGY  SOURCE.  THE  ON-BILL
FINANCING  CHARGES SHALL BE COLLECTED ON BILLS FROM THE CUSTOMER'S ELEC-
TRIC CORPORATION UNLESS THE QUALIFIED ENERGY EFFICIENCY SERVICES AT  THE
CUSTOMER'S  PREMISES  RESULTS  IN  MORE  PROJECTED ENERGY SAVINGS ON THE
CUSTOMER'S GAS BILL THAN ON THE ELECTRIC BILL, IN WHICH CASE THE ON-BILL
FINANCING CHARGES SHALL BE COLLECTED ONLY ON THE CUSTOMER'S  GAS  CORPO-
RATION BILLS.
  (E)  GREEN JOBS-GREEN NEW YORK ON-BILL FINANCING, IMPLEMENTATION PLAN.
(I) FOR THE PURPOSES OF CARRYING OUT THE REQUIREMENTS OF  THIS  SECTION,
THE  COMMISSION  SHALL  ISSUE AN ORDER MANDATING A COLLABORATIVE PROCESS
BETWEEN THE COMMISSION, THE NEW YORK STATE ENERGY RESEARCH AND  DEVELOP-
MENT  AUTHORITY AND UTILITY COMPANIES, TO DEVELOP THE RULES, REGULATIONS
AND PRACTICES REQUIRED BY SUBPARAGRAPH (II) OF THIS PARAGRAPH, IN  ADDI-
TION  TO THE PROCESS AND RULES FOR ONGOING RECOVERY.  SUCH COLLABORATIVE
PROCESS SHALL LAST NINETY DAYS, AFTER WHICH TIME UTILITY COMPANIES SHALL
SUBMIT A FINAL IMPLEMENTATION PLAN TO THE COMMISSION WITHIN THIRTY DAYS.
THE COMMISSION SHALL THEREAFTER APPROVE, DENY OR MODIFY SUCH PLAN WITHIN
SIXTY DAYS. IF A PLAN IS DISAPPROVED,  THE  UTILITY  COMPANY  WILL  HAVE
THIRTY  DAYS  TO  MEET THE REQUIREMENTS OF APPROVAL. FOLLOWING APPROVAL,
UTILITY COMPANIES SHALL IMPLEMENT THE PROGRAM WITHIN EIGHT  MONTHS.  NOT
LESS  THAN ONE MONTH BEFORE THE DEADLINE FOR COMPLIANCE WITH IMPLEMENTA-
TION OF THE PROGRAM, A UTILITY COMPANY MAY REQUEST IN WRITING  THAT  THE
COMMISSION  GRANT,  FOR  GOOD CAUSE, AN EXTENSION OF TIME, NOT TO EXCEED
TWO MONTHS, IN ORDER FOR SUCH UTILITY COMPANY TO IMPLEMENT THE  PROGRAM.
THE  COMMISSION  SHALL APPROVE OR DENY SUCH REQUEST WITHIN FIVE BUSINESS
DAYS, AND SHALL SPECIFY THE LENGTH OF THE ADDITIONAL TIME  PROVIDED,  UP
TO TWO MONTHS, HOWEVER ONLY ONE EXTENSION OF TIME MAY BE APPROVED BY THE
COMMISSION.
  (II)  THE  COMMISSION  SHALL,  IN CONSULTATION WITH THE NEW YORK STATE
ENERGY RESEARCH AND DEVELOPMENT AUTHORITY AND UTILITY COMPANIES, PROMUL-
GATE RULES AND REGULATIONS  THAT  ESTABLISH  BUSINESS  PRACTICES  TO  BE
EMPLOYED BY THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY
AND  UTILITY  COMPANIES  IN  ADMINISTERING THE ON-BILL FINANCING PROGRAM
INCLUDING, BUT NOT LIMITED TO: BILLING, PAYMENT  PROCESSING,  COLLECTION
OF ON-BILL FINANCING CHARGES, NOTICE OF TERMINATION REQUIREMENTS, CONDI-

S. 4490--A                          5

TIONS  UNDER WHICH UTILITY COMPANIES MAY APPLY TO THE COMMISSION FOR ANY
ONGOING COST RECOVERY, AND CONDITIONS UPON  WHICH  THE  NEW  YORK  STATE
ENERGY  RESEARCH  AND  DEVELOPMENT  AUTHORITY  MAY  AUTHORIZE  THE REIN-
STATEMENT  OF  SERVICE  OR  THE  OPENING  OF  A NEW UTILITY ACCOUNT BY A
CUSTOMER WHOSE UTILITY ACCOUNT HAS BEEN  TERMINATED  FOR  NONPAYMENT  OF
ON-BILL  FINANCING  CHARGES.  RULES  AND  REGULATIONS PROMULGATED BY THE
COMMISSION CONCERNING ANY REQUEST FOR ONGOING COST RECOVERY SHALL DIRECT
UTILITY COMPANIES TO FILE INFORMATION BEFORE THE COMMISSION FOR  CONSID-
ERATION  OF  THE REQUEST, AND THE COMMISSION SHALL MAINTAIN ITS RIGHT TO
APPROVE, DENY OR MODIFY SUCH REQUEST.
  (F) IN ADMINISTERING THE GREEN JOBS-GREEN NEW YORK  ON-BILL  FINANCING
PROGRAM, THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY IS
DIRECTED  TO MAKE REIMBURSEMENTS TO UTILITY COMPANIES FOR REASONABLE AND
NECESSARY  COSTS  ASSOCIATED  WITH  THE  IMPLEMENTATION  OF  THE   GREEN
JOBS-GREEN NEW YORK ON-BILL FINANCING PROGRAM.
  (G)  EACH  UTILITY  COMPANY  SHALL  LIMIT  THE NUMBER OF CUSTOMERS WHO
PARTICIPATE IN THE GREEN JOBS-GREEN NEW YORK ON-BILL  FINANCING  PROGRAM
TO  NO  MORE  THAN ONE AND ONE-HALF PERCENT OF ITS TOTAL CUSTOMERS.  THE
NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY MAY,  FOLLOWING
A  REVIEW  OF  THE  PROGRAM  OVER  A  PERIOD OF NOT LESS THAN THIRTY-SIX
MONTHS, BASED UPON DATA FROM THE REPORTING  REQUIREMENT  OF  SUBDIVISION
THREE  OF SECTION EIGHTEEN HUNDRED NINETY-NINE OF THE PUBLIC AUTHORITIES
LAW, PETITION THE COMMISSION TO INCREASE THE NUMBER OF CUSTOMERS WHO MAY
PARTICIPATE IN THE GREEN JOBS-GREEN NEW YORK ON-BILL  FINANCING  PROGRAM
TO  NOT  MORE  THAN  TWO  AND  ONE-HALF  PERCENT OF EACH UTILITY'S TOTAL
CUSTOMERS.
  (H) THE COMMISSION MAY SUSPEND OR TERMINATE A UTILITY COMPANY'S OFFER-
ING OF THE ON-BILL FINANCE CHARGE PROVIDED THAT THE COMMISSION  MAKES  A
FINDING  THAT THERE IS A SIGNIFICANT INCREASE IN UTILITY SERVICE DISCON-
NECTIONS THAT THE COMMISSION  DETERMINES  IS  DIRECTLY  RELATED  TO  THE
ON-BILL CHARGE, OR A FINDING OF OTHER GOOD CAUSE.
  (I)  FIFTEEN  PERCENT  OF  THE  ENERGY  SAVINGS  REALIZED FROM CAPITAL
IMPROVEMENTS AND FIXTURES FINANCED BY THE NEW YORK STATE ENERGY RESEARCH
AND DEVELOPMENT AUTHORITY LOANS UNDER THE GREEN JOBS-GREEN NEW YORK LOAN
PROGRAM PURSUANT TO SUBDIVISION TWO OF SECTION EIGHTEEN HUNDRED  NINETY-
SIX  OF  THE  PUBLIC  AUTHORITIES LAW, IN THE UTILITY COMPANIES' SERVICE
TERRITORIES SHALL BE CREDITED TO THE APPROPRIATE ELECTRIC  CORPORATION'S
AND/OR  GAS  CORPORATION'S  ENERGY  SAVINGS  TARGETS  ESTABLISHED BY THE
COMMISSION IN THE ENERGY EFFICIENCY PORTFOLIO STANDARD PROCEEDING.
  (J) UTILITY COMPANIES MAY TERMINATE UTILITY SERVICE FOR NON-PAYMENT OF
SUCH ON-BILL FINANCING CHARGES SUBJECT TO THE  RIGHTS  OF  THE  CUSTOMER
ESTABLISHED UNDER ARTICLE TWO OF THE PUBLIC SERVICE LAW EXCEPT THE RIGHT
TO  HAVE PAYMENT OF ARREARS OF INSTALLMENTS OF ON-BILL FINANCING CHARGES
SUBJECT TO A DEFERRED PAYMENT AGREEMENT UNDER  SECTION  THIRTY-SEVEN  OF
THIS CHAPTER.
  (K) THE RESPONSIBILITIES OF THE UTILITY COMPANY SHALL BE LIMITED SOLE-
LY TO PROVIDING BILLING, PAYMENT PROCESSING, AND COLLECTION SERVICES FOR
ON-BILL  CHARGES  AS  DIRECTED BY THE NEW YORK STATE ENERGY RESEARCH AND
DEVELOPMENT AUTHORITY.
  (L) A CUSTOMER REMITTING LESS THAN THE TOTAL AMOUNT DUE  FOR  ELECTRIC
AND/OR  GAS  SERVICES  AND  ON-BILL  FINANCING  CHARGES  SHALL HAVE SUCH
PARTIAL PAYMENT  FIRST  APPLIED  AS  PAYMENT  FOR  ELECTRIC  AND/OR  GAS
SERVICES AND ANY REMAINING AMOUNT WILL BE APPLIED TO THE ON-BILL FINANC-
ING  CHARGE, WHETHER SUCH CHARGE IS INCLUDED ON THE UTILITY BILL OR BILL
SEPARATELY.

S. 4490--A                          6

  (M) WHEN THE CUSTOMER'S UTILITY ACCOUNT  AT  THE  UTILITY  COMPANY  IS
CLOSED,  THE  BALANCE  OF  THE CUSTOMER'S GREEN JOBS-GREEN NEW YORK LOAN
INCLUDING ANY CHARGES IN ARREARS SHALL BE DUE AND OWING, AND  COLLECTION
SHALL  BE  THE  RESPONSIBILITY OF THE NEW YORK STATE ENERGY RESEARCH AND
DEVELOPMENT  AUTHORITY.    AFTER  THE  CUSTOMER'S UTILITY ACCOUNT AT THE
UTILITY  COMPANY  IS  CLOSED,  ALL  PAYMENT  PROCESSING  AND  COLLECTION
SERVICES  FOR  ON-BILL CHARGES SHALL BE CONDUCTED BY OR ON BEHALF OF THE
NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT  AUTHORITY  IN  A  MANNER
CONSISTENT  WITH  THE  RIGHTS,  DUTIES  AND OBLIGATIONS OF EVERY UTILITY
COMPANY SUBJECT TO THE JURISDICTION OF THE COMMISSION UNDER  THIS  ARTI-
CLE, AND ARTICLES TWO AND FOUR-A OF THIS CHAPTER.
  (N)  UNLESS  OTHERWISE  PRECLUDED  BY  LAW, PARTICIPATION IN THE GREEN
JOBS-GREEN NEW YORK ON-BILL FINANCING PROGRAM SHALL NOT AFFECT A CUSTOM-
ER'S ELIGIBILITY FOR ANY REBATE OR INCENTIVE OFFERED BY A UTILITY COMPA-
NY. UTILITY COMPANIES MAY MAKE AVAILABLE TO CUSTOMERS WHO RECEIVED GREEN
JOBS-GREEN NEW YORK ON-BILL FINANCING  PROGRAM  LOANS  ANY  REBATES  FOR
ELIGIBLE  ENERGY  EFFICIENCY  MEASURES AVAILABLE TO CUSTOMERS WHO DO NOT
RECEIVE SUCH LOANS.
  (O) THE COMMISSION SHALL NOT APPROVE ANY APPLICATION FOR  THE  CONVER-
SION  TO  SUBMETERING OF ANY MASTER METER THAT IS SUBJECT TO ANY ON-BILL
FINANCING CHARGES.
  2. (A) QUALIFIED ENERGY EFFICIENCY SERVICES REPAID THROUGH AN  ON-BILL
RECOVERY MECHANISM SHALL BE CONSIDERED A SPECIAL ENERGY PROJECT PURSUANT
TO SECTION EIGHTEEN HUNDRED FIFTY-ONE OF THE PUBLIC AUTHORITIES LAW. THE
NEW  YORK  STATE  ENERGY RESEARCH AND DEVELOPMENT AUTHORITY SHALL SECURE
EVERY LOAN ISSUED FOR SUCH SERVICES THAT ARE TO  BE  REPAID  THROUGH  AN
ON-BILL  RECOVERY  MECHANISM WITH A MORTGAGE UPON THE REAL PROPERTY THAT
IS IMPROVED BY SUCH SERVICES.  SUCH MORTGAGE SHALL BE RECORDED  PURSUANT
TO SECTION TWO HUNDRED NINETY-ONE-D OF THE REAL PROPERTY LAW.
  (B)  ALL  TERMS AND PROVISIONS OF A GREEN JOBS-GREEN NEW YORK MORTGAGE
PURSUANT TO THIS SUBDIVISION SHALL BE SUBJECT  AND  SUBORDINATE  TO  THE
LIEN  OF  ANY  MORTGAGE  OR  MORTGAGES  BY A BANK, CREDIT UNION OR OTHER
INSTITUTIONAL LENDER. WHEN A SUBSEQUENT PURCHASER  OF  THE  PROPERTY  IS
GRANTED  A  MORTGAGE,  THE  GREEN  JOBS-GREEN NEW YORK MORTGAGE SHALL BE
SUBORDINATE TO THE TERMS OF THAT MORTGAGE.
  (C) THE MORTGAGEE SHALL NOT RETAIN ANY RIGHT  TO  ENFORCE  PAYMENT  OR
FORECLOSE UPON THE PROPERTY.
  (D)  THE GREEN JOBS-GREEN NEW YORK MORTGAGE SHALL BE EXEMPT FROM STATE
MORTGAGE RECORDING TAXES AND LOCAL RECORDING TAXES.
  S 9. Sections 1020-hh, 1020-ii and 1020-jj of the  public  authorities
law,  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 ON-BILL RECOVERY. 1.  WITHIN ONE
HUNDRED FIFTY DAYS OF THE EFFECTIVE DATE OF THIS SECTION, THE  AUTHORITY
SHALL  ESTABLISH  A PROGRAM TO PROVIDE FOR THE BILLING AND COLLECTION OF
ON-BILL RECOVERY CHARGES FOR PAYMENT OF OBLIGATIONS OF ITS CUSTOMERS  TO
THE  GREEN  JOBS-GREEN NEW YORK REVOLVING LOAN FUND ESTABLISHED PURSUANT
TO TITLE NINE-A OF ARTICLE EIGHT OF THIS CHAPTER. SUCH PROGRAM SHALL  BE
CONSISTENT  WITH THE STANDARDS SET FORTH IN SUBDIVISION THREE OF SECTION
FORTY-TWO AND SECTION SIXTY-SIX-M OF THE  PUBLIC  SERVICE  LAW.  TO  THE
MAXIMUM  EXTENT  PRACTICABLE,  FUNDING AVAILABLE FROM THE NEW YORK STATE
ENERGY RESEARCH AND DEVELOPMENT AUTHORITY SHALL BE  UTILIZED  TO  DEFRAY
ANY  COSTS  ASSOCIATED  WITH ELECTRONIC DATA INTERCHANGE IMPROVEMENTS OR
OTHER COSTS OF INITIATING AND IMPLEMENTING THIS PROGRAM.    BILLING  AND

S. 4490--A                          7

COLLECTION  SERVICES  SHALL COMMENCE AS SOON AS PRACTICABLE AFTER ESTAB-
LISHMENT OF THE PROGRAM.
  2.  THE  AUTHORITY  MAY  SUSPEND  ITS OFFERING OF THE ON-BILL RECOVERY
CHARGE PROVIDED THAT, AFTER CONDUCTING A PUBLIC HEARING,  THE  AUTHORITY
MAKES  A FINDING THAT THERE IS A SIGNIFICANT INCREASE IN UTILITY SERVICE
ARREARS OR DISCONNECTIONS THAT  THE  AUTHORITY  DETERMINES  IS  DIRECTLY
RELATED  TO  THE  ON-BILL  RECOVERY  CHARGE,  OR A FINDING OF OTHER GOOD
CAUSE.
  S 10. Section 1896 of the public authorities law, as added by  chapter
487 of the laws of 2009, is amended to read as follows:
  S 1896. Green jobs-green New York revolving loan fund. 1. (a) There is
hereby  created  a  green  jobs-green  New York revolving loan fund. The
revolving loan fund shall consist of:
  (i) all moneys made available for the purpose of  the  revolving  loan
fund pursuant to section eighteen hundred ninety-nine-a of this title;
  (ii)  payments  of  principal and interest, INCLUDING ANY LATE PAYMENT
CHARGES, made pursuant to loan or financing agreements entered into with
the authority or its designee pursuant to this section; and
  (iii) any interest earned by the investment of moneys in the revolving
loan fund.
  (b) The revolving loan fund shall consist of two accounts:
  (i) one account which shall be maintained for monies to be made avail-
able to provide loans to finance the cost of approved  qualified  energy
efficiency  services  for residential structures and multi-family struc-
tures, and
  (ii) one account which shall be maintained for monies  made  available
to  provide loans to finance the cost of approved qualified energy effi-
ciency services for non-residential structures. The initial  balance  of
the residential account established in [clause] SUBPARAGRAPH (i) of this
paragraph shall represent at least fifty percent of the total balance of
the  two  accounts.  The authority shall not commingle the monies of the
revolving loan fund with any other monies of the authority  or  held  by
the  authority,  nor  shall  the  authority commingle the monies between
accounts. Payments of principal, interest and fees  shall  be  deposited
into  the  account  created  and  maintained for the appropriate type of
eligible project.
  (c) In administering such program, the  authority  is  authorized  and
directed to:
  (i)  use  monies made available for the revolving loan fund to achieve
the purposes of this section by section eighteen  hundred  ninety-nine-a
of  this  title, including but not limited to making loans available for
eligible projects;
  (ii) enter into contracts with one or  more  program  implementers  to
perform such functions as the authority deems appropriate; [and]
  (iii)  ESTABLISH  AN ON-BILL RECOVERY MECHANISM FOR REPAYMENT OF LOANS
FOR THE PERFORMANCE OF QUALIFIED ENERGY EFFICIENCY SERVICES FOR ELIGIBLE
PROJECTS IN THE FORM OF A CHARGE APPEARING ON THE PARTICIPATING  CUSTOM-
ER'S  UTILITY  BILL  PROVIDED THAT SUCH ON-BILL RECOVERY MECHANISM SHALL
PROVIDE FOR THE UTILIZATION OF ANY ON-BILL RECOVERY PROGRAMS ESTABLISHED
PURSUANT TO SECTION SIXTY-SIX-M OF THE PUBLIC SERVICE  LAW  AND  SECTION
ONE THOUSAND TWENTY-HH OF THIS CHAPTER;
  (IV)  ESTABLISH  STANDARDS  FOR CUSTOMER PARTICIPATION IN SUCH ON-BILL
FINANCING MECHANISM,  INCLUDING  STANDARDS  FOR  RELIABLE  UTILITY  BILL
PAYMENT,  CURRENT  GOOD  STANDING  ON ANY MORTGAGE OBLIGATIONS, AND SUCH
ADDITIONAL STANDARDS AS THE AUTHORITY DEEMS NECESSARY; PROVIDED THAT  IN
ORDER  TO PROVIDE BROAD ACCESS TO ON-BILLING FINANCING THE AUTHORITY MAY

S. 4490--A                          8

MAINTAIN DIFFERENT STANDARDS FOR DIFFERENT CATEGORIES OF CUSTOMERS WHICH
SHALL BE PRUDENT AND, TO THE FULLEST EXTENT PRACTICABLE,  SHALL  INCLUDE
PARTICIPATION  BY CUSTOMERS WHO ARE LESS LIKELY TO HAVE ACCESS TO TRADI-
TIONAL SOURCES OF FINANCING;
  (V) PROVIDE ALL CUSTOMERS WHO ENTER INTO A LOAN PURSUANT TO THIS TITLE
WITH  ADEQUATE  DISCLOSURES  AS PROVIDED FOR IN SUBDIVISION FOUR OF THIS
SECTION; AND
  (vi) exercise such other powers as are necessary for the proper admin-
istration of the program, INCLUDING AT THE DISCRETION OF THE  AUTHORITY,
ENTERING  INTO AGREEMENTS WITH APPLICANTS AND WITH SUCH STATE OR FEDERAL
AGENCIES AS NECESSARY TO DIRECTLY RECEIVE REBATES AND  GRANTS  AVAILABLE
FOR  ELIGIBLE  PROJECTS  AND  APPLY SUCH FUNDS TO REPAYMENT OF APPLICANT
LOAN OBLIGATIONS.
  2. (a) The authority shall provide financial assistance in the form of
loans for the performance of qualified energy  efficiency  services  for
eligible projects on terms and conditions established by the authority.
  (b)  Loans  made  by  the  authority pursuant to this section shall be
subject to the following limitations:
  (i) eligible projects shall meet cost effectiveness  standards  devel-
oped by the authority;
  (ii)  loans  shall  not exceed thirteen thousand dollars per applicant
for approved qualified energy efficiency services for residential struc-
tures, and twenty-six thousand dollars per applicant for approved quali-
fied  energy  efficiency  services   for   non-residential   structures,
PROVIDED,  HOWEVER,  THAT  THE  AUTHORITY MAY PERMIT A LOAN IN EXCESS OF
SUCH AMOUNTS IF THE TOTAL COST OF ENERGY EFFICIENCY MEASURES FINANCED BY
SUCH LOAN WILL ACHIEVE A PAYBACK PERIOD OF FIFTEEN YEARS OR LESS, BUT IN
NO EVENT SHALL ANY SUCH LOAN EXCEED  TWENTY-FIVE  THOUSAND  DOLLARS  PER
APPLICANT  FOR  RESIDENTIAL  STRUCTURES  AND  FIFTY THOUSAND DOLLARS PER
APPLICANT FOR NON-RESIDENTIAL STRUCTURES; and  for  multi-family  struc-
tures  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)  NO  FEES OR PENALTIES SHALL BE CHARGED OR COLLECTED FOR PREPAY-
MENT OF ANY SUCH LOAN; 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.
  In determining whether to make a loan, and the amount of any loan that
is  made,  the authority is authorized to consider whether the applicant
or borrower has received, or is eligible to receive,  financial  assist-
ance and other incentives from any other source for the qualified energy
efficiency  services  which would be the subject of the loan.  IN DETER-
MINING WHETHER A LOAN WILL ACHIEVE A PAYBACK PERIOD OF FIFTEEN YEARS  OR
LESS  PURSUANT TO SUBPARAGRAPH (II) OF THIS PARAGRAPH, THE AUTHORITY MAY
CONSIDER THE AMOUNT OF THE LOAN TO BE  REDUCED  BY  THE  AMOUNT  OF  ANY
REBATES  FOR QUALIFIED ENERGY EFFICIENCY SERVICES RECEIVED BY THE APPLI-
CANT OR BY THE AUTHORITY ON BEHALF OF AN APPLICANT.
  (c) Applications for financial assistance  pursuant  to  this  section
shall  be reviewed and evaluated by the authority or its designee pursu-
ant to eligibility and qualification requirements  and  criteria  estab-
lished by the authority. The authority shall establish standards for (i)
qualified energy efficiency services, and (ii) measurement and verifica-
tion  of  energy savings. Such standards shall meet or exceed the stand-
ards used by the authority for similar  programs  in  existence  on  the
effective date of this section.

S. 4490--A                          9

  (d)  The  amount  of  a  fee  paid  for an energy audit provided under
section eighteen hundred ninety-five of this title may be added  to  the
amount  of a loan that is made under this section to finance the cost of
an eligible project conducted in response to such energy audit. In  such
a  case,  the  amount  of the fee may be reimbursed from the fund to the
borrower.
  (E) IN ESTABLISHING AN ON-BILL FINANCING MECHANISM:
  (I) THE COST-EFFECTIVENESS OF AN ELIGIBLE PROJECT SHALL  BE  EVALUATED
SOLELY  ON  THE BASIS OF THE COSTS AND PROJECTED SAVINGS TO THE APPLYING
CUSTOMER, USING STANDARD ENGINEERING ASSESSMENTS AND PRIOR BILLING  DATA
AND USAGE PATTERNS;
  (II)  THE  AUTHORITY  SHALL ESTABLISH A PROCESS FOR RECEIPT AND RESOL-
UTION OF CUSTOMER COMPLAINTS CONCERNING ON-BILL CHARGES AND FOR ADDRESS-
ING DELAYS AND DEFAULTS IN CUSTOMER PAYMENTS; AND
  (III) THE AUTHORITY MAY LIMIT THE AVAILABILITY OF LIGHTING MEASURES OR
HOUSEHOLD APPLIANCES THAT ARE NOT PERMANENTLY AFFIXED TO REAL PROPERTY.
  3. THE AUTHORITY SHALL EVALUATE THE COST-EFFECTIVENESS OF THE  ON-BILL
FINANCING MECHANISM ON AN ON-GOING BASIS.
  (A)  IN  CONDUCTING  SUCH EVALUATION, THE AUTHORITY SHALL REQUEST EACH
CUSTOMER TO PROVIDE INFORMATION ON ANY IMPROVEMENTS OR MODIFICATIONS  TO
THE  PREMISES,  USE  OF  THE  PREMISES OR ENERGY CONSUMING APPLIANCES OR
EQUIPMENT OF ANY TYPE THAT MAY SIGNIFICANTLY AFFECT ENERGY USAGE.
  (B) AT A MINIMUM THE AUTHORITY SHALL COLLECT AND MAINTAIN  INFORMATION
FOR  DATES  PRIOR  TO  THE  PERFORMANCE  OF  QUALIFIED ENERGY EFFICIENCY
SERVICES, TO ESTABLISH A BASELINE, AND FOR DATES COVERING  A  SUBSEQUENT
TIME  PERIOD  TO  MEASURE  THE EFFECTIVENESS OF SUCH MEASURES. SUCH DATA
SHALL BE CORRELATED WITH INFORMATION FROM THE ENERGY AUDIT AND ANY OTHER
RELEVANT INFORMATION, INCLUDING INFORMATION ON LOCAL WEATHER CONDITIONS,
AND SHALL BE USED TO EVALUATE  THE  ON-BILL  FINANCING  PROGRAM  AND  TO
IMPROVE  THE  ACCURACY  OF  PROJECTIONS  OF COST-EFFECTIVENESS ON AN ON-
GOING BASIS. AN ANALYSIS OF SUCH DATA SHALL BE INCLUDED  IN  THE  ANNUAL
REPORT PREPARED PURSUANT TO SECTION EIGHTEEN HUNDRED NINETY-NINE OF THIS
TITLE.
  (C) ALL PERSONALLY IDENTIFIABLE INFORMATION COLLECTED BY THE AUTHORITY
SHALL  BE  CONFIDENTIAL.  THE  AUTHORITY SHALL COLLECT AND AGGREGATE AND
PUBLISH ON THE AUTHORITY WEBSITE SUCH INFORMATION AS DESCRIBED IN  PARA-
GRAPH  (B) OF THIS SUBDIVISION IN A MANNER THAT WILL FACILITATE THE OPEN
TRANSMISSION OF INFORMATION REGARDING THE BEST  PRACTICES  OF  QUALIFIED
ENERGY EFFICIENCY SERVICES.
  (D)  QUALIFIED  ENERGY  EFFICIENCY  SERVICES REPAID THROUGH AN ON-BILL
RECOVERY MECHANISM SHALL BE CONSIDERED A SPECIAL ENERGY PROJECT PURSUANT
TO SECTION EIGHTEEN HUNDRED FIFTY-ONE OF  THIS  ARTICLE.  THE  NEW  YORK
STATE  ENERGY RESEARCH AND DEVELOPMENT AUTHORITY SHALL SECURE EVERY LOAN
ISSUED FOR SUCH SERVICES THAT ARE TO BE REPAID THROUGH AN ON-BILL RECOV-
ERY MECHANISM WITH A MORTGAGE UPON THE REAL PROPERTY THAT IS IMPROVED BY
SUCH SERVICES.  SUCH MORTGAGE SHALL BE RECORDED PURSUANT TO SECTION  TWO
HUNDRED NINETY-ONE-D OF THE REAL PROPERTY LAW.
  (E)  ALL  TERMS AND PROVISIONS OF A GREEN JOBS-GREEN NEW YORK MORTGAGE
PURSUANT TO THIS SUBDIVISION SHALL BE SUBJECT  AND  SUBORDINATE  TO  THE
LIEN  OF  ANY  MORTGAGE  OR  MORTGAGES  BY A BANK, CREDIT UNION OR OTHER
INSTITUTIONAL LENDER. WHEN A SUBSEQUENT PURCHASER  OF  THE  PROPERTY  IS
GRANTED  A  MORTGAGE,  THE  GREEN  JOBS-GREEN NEW YORK MORTGAGE SHALL BE
SUBORDINATE TO THE TERMS OF THAT MORTGAGE.
  4. (A) ANY PERSON, FIRM, COMPANY, PARTNERSHIP, OR CORPORATION  INCLUD-
ING,  BUT  NOT  LIMITED TO, THE AUTHORITY, OFFERING TO PROVIDE CUSTOMERS
WITH A LOAN FOR THE PURPOSES OF UNDERTAKING AN ENERGY-EFFICIENT  PROJECT

S. 4490--A                         10

PURSUANT  TO THE PROGRAM SHALL PROVIDE, IN WRITING, TO SUCH CUSTOMER, IN
CLEAR AND CONSPICUOUS TERMS: (I) THE FINANCIAL  AND  LEGAL  OBLIGATIONS,
RISKS,  IMPACTS,  AND  CONSEQUENCES  OF ACCEPTING SUCH LOAN RESPONSIBIL-
ITIES,  INCLUDING THE OBLIGATION TO PROVIDE OR CONSENT TO THE CUSTOMER'S
UTILITY COMPANY PROVIDING THE AUTHORITY INFORMATION ON THE  SOURCES  AND
QUANTITIES  OF  ENERGY  USED IN THE CUSTOMER'S PREMISES AND ANY IMPROVE-
MENTS OR MODIFICATIONS TO THE PREMISES, USE OF THE  PREMISES  OR  ENERGY
CONSUMING  APPLIANCES  OR  EQUIPMENT  OF ANY TYPE THAT MAY SIGNIFICANTLY
AFFECT ENERGY USAGE; (II) NOTIFICATION THAT THE ON-BILL FINANCING CHARGE
WILL BE BILLED BY SUCH CUSTOMER'S UTILITY COMPANY AND  THAT  FAILURE  TO
PAY  SUCH  ON-BILL  FINANCING CHARGE MAY RESULT IN THE CUSTOMER'S HAVING
ITS ELECTRICITY AND/OR GAS TERMINATED  FOR  NON-PAYMENT,  PROVIDED  THAT
SUCH  UTILITY  COMPANY  FOLLOWS  THE  REQUIREMENTS OF ARTICLE TWO OF THE
PUBLIC SERVICE LAW WITH RESPECT TO RESIDENTIAL CUSTOMERS; (III)  NOTIFI-
CATION  THAT INCURRING SUCH LOAN TO UNDERTAKE ENERGY-EFFICIENCY PROJECTS
MAY NOT RESULT IN LOWER MONTHLY ENERGY COSTS OVER TIME, BASED  ON  ADDI-
TIONAL FACTORS THAT CONTRIBUTE TO MONTHLY ENERGY COSTS; (IV) THE PROGRAM
IS  OPERATED  BY  THE AUTHORITY AND IT IS THE SOLE RESPONSIBILITY OF THE
AUTHORITY TO HANDLE CONSUMER INQUIRIES AND  COMPLAINTS  RELATED  TO  THE
OPERATION AND LENDING ASSOCIATED WITH THE PROGRAM, PROVIDED FURTHER THAT
THE  AUTHORITY  SHALL  PROVIDE  A  MECHANISM  TO  RECEIVE  SUCH CONSUMER
INQUIRIES AND COMPLAINTS.
  (B) ANY PERSON ENTERING INTO A GREEN JOBS-GREEN NEW  YORK  LOAN  SHALL
HAVE  THE  RIGHT  TO  CANCEL  ANY  CONTRACT FOR CAPITAL IMPROVEMENTS AND
FIXTURES TO PROMOTE ENERGY EFFICIENCY PURSUANT  TO  THE  PROGRAM  ESTAB-
LISHED  BY  SECTION  EIGHTEEN  HUNDRED  NINETY-SIX  OF  THIS TITLE UNTIL
MIDNIGHT OF THE FIFTH BUSINESS DAY  FOLLOWING  THE  DAY  ON  WHICH  SUCH
PERSON SIGNS SUCH CONTRACT.
  S  11. The opening paragraph of section 1899 of the public authorities
law, as added by chapter 487 of the laws of 2009, is amended to read  as
follows:
  No  later  than  October  first, two thousand ten and October first of
each year thereafter, the president of  the  authority  shall  issue  an
annual  report  to  the governor, the temporary president of the senate,
the speaker of the assembly, the minority leader of  the  senate  [and],
the  minority  leader of the assembly, THE PUBLIC SERVICE COMMISSION AND
THE PARTICIPATING UTILITY COMPANIES concerning  the  authority's  activ-
ities  related to the green jobs - green New York program created pursu-
ant to this title. Such report shall include, but not be limited to  the
following information:
  S  12. Subdivision 3 of section 1899 of the public authorities law, as
added by chapter 487 of the laws of 2009, is amended to read as follows:
  3. The status of the authority's activities and  outcomes  related  to
section  eighteen  hundred  ninety-six  of this title. Such report shall
include, but not be limited to: (a)  the  number  of  persons  who  have
applied for and received financial assistance through the revolving loan
fund;  (b)  the  revolving loan fund account balances; (c) the number of
loans in default; [and] (d) the amount and nature of the costs  incurred
by the authority for the activities described in paragraph (c) of subdi-
vision one of section eighteen hundred ninety-six of this title; (E) THE
AUTHORITY'S  ACTIVITIES  AND OUTCOMES RELATED TO ESTABLISHING AN ON-BILL
FINANCING MECHANISM, INCLUDING THE NUMBER OF PERSONS  WHO  HAVE  APPLIED
FOR  AND  WHO  HAVE  RECEIVED FINANCIAL ASSISTANCE THAT UTILIZES ON-BILL
FINANCING AND THE RESULTS OF THE EVALUATION PROGRAM  PERFORMED  PURSUANT
TO  SUBDIVISION  THREE  OF  SECTION  EIGHTEEN HUNDRED NINETY-SIX OF THIS
TITLE; (F) THE AMOUNT EXPENDED  BY  THE  AUTHORITY  IN  SUPPORT  OF  THE

S. 4490--A                         11

PROGRAM  AND  THE  PURPOSES FOR WHICH SUCH FUNDS HAVE BEEN EXPENDED; (G)
THE NUMBER OF CUSTOMERS PARTICIPATING IN THE PROGRAM, SEPARATELY STATING
THE NUMBER OF RESIDENTIAL AND NON-RESIDENTIAL CUSTOMERS AND THE  AMOUNTS
FINANCED;  (H)  THE NUMBER OF PROGRAM PARTICIPANTS WHO ARE IN ARREARS IN
THEIR UTILITY ACCOUNTS FOR ELECTRIC AND/OR GAS SERVICE; (I)  THE  NUMBER
OF  PROGRAM  PARTICIPANTS  WHO ARE IN ARREARS IN THEIR ON-BILL FINANCING
CHARGE PAYMENTS; (J) THE NUMBER OF PROGRAM  PARTICIPANTS  WHOSE  UTILITY
SERVICE  HAS  BEEN  TERMINATED FOR NON-PAYMENT; (K) A DESCRIPTION OF THE
GEOGRAPHIC DISTRIBUTION OF LOANS MADE; (L) AN  ESTIMATE  OF  THE  ENERGY
SAVINGS  RESULTING FROM THIS PROGRAM; AN ESTIMATE OF THE AVERAGE PROJECT
COST IN EACH COUNTY IN THE STATE;  AND  (M)  IN  CONSULTATION  WITH  THE
DEPARTMENT  OF  LABOR,  AN  ESTIMATE  OF THE NUMBER OF JOBS CREATED AS A
DIRECT RESULT OF THIS PROGRAM, BY REGION AND JOB TYPE.
  S 13. 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.  (A) PRIOR TO THE SIGNING BY
THE BUYER OF A BINDING CONTRACT OF SALE FOR REAL  PROPERTY  THAT  HAS  A
GREEN  JOBS-GREEN  NEW YORK MORTGAGE OBLIGATION, THE PROSPECTIVE GRANTOR
SHALL PRESENT TO THE  PROSPECTIVE  GRANTEE  A  DISCLOSURE  NOTICE  WHICH
STATES  THE  FOLLOWING:    "THIS DISCLOSURE NOTICE IS INTENDED TO INFORM
PROSPECTIVE PURCHASERS THAT THE REAL PROPERTY THEY ARE ABOUT TO  ACQUIRE
IS  SUBJECT  TO A GREEN JOBS-GREEN NEW YORK MORTGAGE." SUCH NOTICE SHALL
ALSO STATE THE TOTAL AMOUNT OF THE ORIGINAL CHARGE, THE PAYMENT SCHEDULE
AND THE APPROXIMATE REMAINING BALANCE, A DESCRIPTION OF THE ENERGY EFFI-
CIENCY SERVICES PERFORMED, INCLUDING IMPROVEMENTS TO THE  PROPERTY,  AND
AN EXPLANATION OF THE BENEFIT OF THE GREEN JOBS-GREEN NEW YORK QUALIFIED
ENERGY EFFICIENCY SERVICES.
  (B) ANY PROSPECTIVE OR ACTUAL PURCHASER WHO HAS SUFFERED A LOSS DUE TO
A  VIOLATION OF THIS SUBDIVISION SHALL BE ENTITLED TO RECOVER ANY ACTUAL
DAMAGES INCURRED FROM THE SELLER OF SAID REAL PROPERTY.
  (C) WHERE THE PURCHASER RECEIVES THE GREEN JOBS-GREEN  NEW  YORK  LOAN
DISCLOSURE  PURSUANT  TO  THIS  SUBDIVISION  PRIOR TO THE SIGNING BY THE
PURCHASER OF A BINDING CONTRACT OF SALE FOR THE PURCHASE OF  RESIDENTIAL
REAL PROPERTY, ANY PERSON WHO IS LICENSED AS A REAL ESTATE BROKER, ASSO-
CIATE  REAL  ESTATE BROKER OR REAL ESTATE SALESPERSON UNDER SECTION FOUR
HUNDRED FORTY-A OF THIS CHAPTER AND WHO IS ACTING IN A FIDUCIARY CAPACI-
TY FOR EITHER A BUYER OR A SELLER OF  RESIDENTIAL  REAL  PROPERTY  SHALL
HAVE  FULFILLED THEIR DISCLOSURE OBLIGATION PURSUANT TO THIS SUBDIVISION
AND SHALL NOT BE REQUIRED TO PROVIDE  ANY  FURTHER  INFORMATION  TO  THE
BUYER  OR  SELLER OF THE RESIDENTIAL REAL PROPERTY REGARDING INFORMATION
RELATING TO THE GREEN JOBS-GREEN  NEW  YORK  LOAN  PROGRAM  PURSUANT  TO
SUBDIVISION  TWO  OF  SECTION  EIGHTEEN HUNDRED NINETY-SIX OF THE PUBLIC
AUTHORITIES LAW.
  S 14. Section 1891 of the public authorities law is amended by  adding
a new subdivision 16 to read as follows:
  16.  "RURAL  ELECTRIC  COOPERATIVE" MEANS A RURAL ELECTRIC COOPERATIVE
ESTABLISHED PURSUANT TO THE RURAL ELECTRIC COOPERATIVE LAW.
  S 15. Subdivision 1 of section 1894 of the public authorities law,  as
added by chapter 487 of the laws of 2009, is amended to read as follows:
  1.  The  authority shall issue one or more program opportunity notices
or requests for proposals to solicit applications from  partnerships  or
consortia   comprised  of  constituency-based  organizations  which  can
connect community members to the program, including facilitating  aware-
ness  of the program and enrollment, and (a) distribution utilities, (b)
contractors that have signed enforceable agreements  to  meet  standards

S. 4490--A                         12

set  by  the authority, including standards for local hiring and pre-ap-
prenticeship and  apprenticeship  and  other  labor-management  training
program participation, (c) workforce development organizations that will
recruit  unemployed  individuals, and provide training and job placement
in conjunction with contractors pursuant  to  section  eighteen  hundred
ninety-seven  of  this  title;  and/or  (d)  organized  trades and their
certification or apprenticeship programs.  The authority  shall  specif-
ically  solicit applications that propose to demonstrate the feasibility
of innovative financing mechanisms, including but not limited to  appli-
cations  undertaken  in  partnership  with  distribution  utilities that
propose to demonstrate the feasibility of on-bill financing. The  public
service  commission  and  other  appropriate  agencies are authorized to
coordinate with the authority and applicants in  developing  and  imple-
menting  proposed  demonstrations  of  innovative  financing mechanisms.
NOTWITHSTANDING THE FOREGOING, THE AUTHORITY SHALL, IN COOPERATION  WITH
RURAL  ELECTRIC  COOPERATIVES,  DEVELOP  AND  ISSUE  ONE OR MORE PROGRAM
OPPORTUNITY NOTICES OR REQUESTS FOR PROPOSALS  TO  SOLICIT  APPLICATIONS
FOR  FUNDING  UNDER  THIS  PROGRAM FROM RURAL ELECTRIC COOPERATIVES THAT
PROPOSE TO: PROMOTE  ENERGY  EFFICIENCY,  ENERGY  CONSERVATION  AND  THE
INSTALLATION OF CLEAN ENERGY TECHNOLOGIES; REDUCE ENERGY CONSUMPTION AND
ENERGY  COSTS;  REDUCE  GREENHOUSE  GAS  EMISSIONS;  SUPPORT SUSTAINABLE
COMMUNITY DEVELOPMENT; OR CREATE GREEN JOB OPPORTUNITIES.
  S 16. Subparagraph (g) of paragraph 1  of  subdivision  g  of  section
26-405 of the administrative code of the city of New York, as amended by
chapter 749 of the laws of 1990, is amended to read as follows:
  (g) There has been since July first, nineteen hundred seventy, a major
capital  improvement required for the operation, preservation or mainte-
nance of the structure. A MAJOR CAPITAL IMPROVEMENT SHALL NOT INCLUDE AN
ELIGIBLE PROJECT UNDER THE GREEN JOBS-GREEN NEW YORK PROGRAM BY THE  NEW
YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY, ESTABLISHED PURSU-
ANT  TO  TITLE NINE-A OF ARTICLE EIGHT OF THE PUBLIC AUTHORITIES LAW. An
adjustment under this subparagraph [(g)] shall be in  an  amount  suffi-
cient to amortize the cost of the improvements pursuant to this subpara-
graph [(g)] over a seven-year period; or
  S  17.  Paragraph 6 of subdivision c of section 26-511 of the adminis-
trative code of the city of New York, as amended by chapter 116  of  the
laws of 1997, is amended to read as follows:
  (6)  provides  criteria whereby the commissioner may act upon applica-
tions by owners for increases in  excess  of  the  level  of  fair  rent
increase  established under this law provided, however, that such crite-
ria shall provide (a) as to hardship applications, for  a  finding  that
the level of fair rent increase is not sufficient to enable the owner to
maintain  approximately  the same average annual net income (which shall
be computed without regard to debt service, financing costs  or  manage-
ment  fees)  for the three year period ending on or within six months of
the date of an application pursuant to such criteria  as  compared  with
annual  net income, which prevailed on the average over the period nine-
teen hundred sixty-eight through nineteen hundred seventy,  or  for  the
first three years of operation if the building was completed since nine-
teen  hundred  sixty-eight  or  for the first three fiscal years after a
transfer of title to a new owner provided the new owner can establish to
the satisfaction of the commissioner that he or she  acquired  title  to
the  building as a result of a bona fide sale of the entire building and
that the new owner is unable to obtain requisite records for the  fiscal
years  nineteen  hundred  sixty-eight  through  nineteen hundred seventy
despite diligent efforts to obtain same from predecessors in  title  and

S. 4490--A                         13

further  provided that the new owner can provide financial data covering
a minimum of six years under his or  her  continuous  and  uninterrupted
operation  of  the building to meet the three year to three year compar-
ative  test  periods  herein provided; and (b) as to completed building-
wide major capital improvements, for a finding  that  such  improvements
are deemed depreciable under the Internal Revenue Code and that the cost
is  to  be  amortized over a seven-year period, based upon cash purchase
price exclusive of  interest  or  service  charges.    A  MAJOR  CAPITAL
IMPROVEMENT  SHALL NOT INCLUDE AN ELIGIBLE PROJECT UNDER THE GREEN JOBS-
GREEN NEW YORK PROGRAM BY THE NEW YORK STATE ENERGY RESEARCH AND  DEVEL-
OPMENT  AUTHORITY, ESTABLISHED PURSUANT TO TITLE NINE-A OF ARTICLE EIGHT
OF THE PUBLIC AUTHORITIES LAW. Notwithstanding anything to the  contrary
contained  herein,  no  hardship increase granted pursuant to this para-
graph shall, when added to the annual gross rents, as determined by  the
commissioner, exceed the sum of, (i) the annual operating expenses, (ii)
an  allowance for management services as determined by the commissioner,
(iii) actual annual mortgage debt service (interest and amortization) on
its indebtedness to a  lending  institution,  an  insurance  company,  a
retirement  fund or welfare fund which is operated under the supervision
of the banking or insurance laws of the state of New York or the  United
States,  and (iv) eight and one-half percent of that portion of the fair
market value of the property which exceeds the unpaid  principal  amount
of  the  mortgage indebtedness referred to in subparagraph (iii) of this
paragraph. Fair market value for the purposes of this paragraph shall be
six times the annual gross rent. The collection of any increase  in  the
stabilized  rent  for any apartment pursuant to this paragraph shall not
exceed six percent in any year from the  effective  date  of  the  order
granting  the  increase over the rent set forth in the schedule of gross
rents, with collectability of any dollar excess above  said  sum  to  be
spread forward in similar increments and added to the stabilized rent as
established or set in future years;
  S 18.  Paragraph 3 of subdivision d of section 6 of section 4 of chap-
ter  576  of  the  laws  of  1974,  constituting  the  emergency  tenant
protection act of nineteen seventy-four, as amended by  chapter  749  of
the laws of 1990, is amended to read as follows:
  (3)  there has been since January first, nineteen hundred seventy-four
a major capital improvement required for the operation, preservation  or
maintenance  of  the  structure.  A  MAJOR CAPITAL IMPROVEMENT SHALL NOT
INCLUDE AN ELIGIBLE PROJECT UNDER THE GREEN JOBS-GREEN NEW YORK  PROGRAM
BY  THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY, ESTAB-
LISHED PURSUANT TO TITLE 9-A OF ARTICLE 8 OF THE PUBLIC AUTHORITIES LAW.
An adjustment under this paragraph shall be in an amount  sufficient  to
amortize  the cost of the improvements pursuant to this paragraph over a
seven-year period, or
  S 19. The second undesignated paragraph of paragraph (a)  of  subdivi-
sion 4 of section 4 of chapter 274 of the laws of 1946, constituting the
emergency housing rent control law, as amended by chapter 21 of the laws
of  1962,  clause  5  as  amended by chapter 253 of the laws of 1993, is
amended to read as follows:
  No application for adjustment of maximum rent based upon a sales price
valuation shall be filed by the landlord under this  subparagraph  prior
to  six  months from the date of such sale of the property. In addition,
no adjustment ordered by the commission  based  upon  such  sales  price
valuation  shall  be  effective  prior to one year from the date of such
sale. Where, however, the assessed valuation of the  land  exceeds  four
times  the  assessed  valuation of the buildings thereon, the commission

S. 4490--A                         14

may determine a valuation of the property equal to five times the equal-
ized assessed valuation of the  buildings,  for  the  purposes  of  this
subparagraph. The commission may make a determination that the valuation
of  the  property  is  an  amount different from such equalized assessed
valuation where there is a request for  a  reduction  in  such  assessed
valuation  currently pending; or where there has been a reduction in the
assessed valuation for the year next preceding the effective date of the
current assessed valuation in effect at the time of the  filing  of  the
application.  Net  annual return shall be the amount by which the earned
income exceeds the operating expenses of the property,  excluding  mort-
gage  interest  and  amortization, and excluding allowances for obsoles-
cence and reserves, but including an allowance for depreciation  of  two
per  centum  of the value of the buildings exclusive of the land, or the
amount shown for depreciation of the buildings in  the  latest  required
federal income tax return, whichever is lower; provided, however, that
  (1)  no  allowance for depreciation of the buildings shall be included
where the buildings have been fully depreciated for federal  income  tax
purposes or on the books of the owner; or
  (2)  the  landlord  who owns no more than four rental units within the
state has not been fully  compensated  by  increases  in  rental  income
sufficient  to  offset  unavoidable  increases  in property taxes, fuel,
utilities, insurance and repairs  and  maintenance,  excluding  mortgage
interest  and  amortization,  and excluding allowances for depreciation,
obsolescence and reserves, which have occurred since  the  federal  date
determining  the  maximum  rent or the date the property was acquired by
the present owner, whichever is later; or
  (3) the landlord operates a hotel or rooming house or owns  a  cooper-
ative  apartment  and  has  not  been  fully compensated by increases in
rental income from the controlled housing accommodations  sufficient  to
offset  unavoidable  increases  in property taxes and other costs as are
allocable to such controlled housing accommodations, including costs  of
operation  of such hotel or rooming house, but excluding mortgage inter-
est and amortization, and excluding allowances for  depreciation,  obso-
lescence and reserves, which have occurred since the federal date deter-
mining the maximum rent or the date the landlord commenced the operation
of the property, whichever is later; or
  (4)  the  landlord  and  tenant voluntarily enter into a valid written
lease in good faith with respect to  any  housing  accommodation,  which
lease  provides  for  an  increase  in the maximum rent not in excess of
fifteen per centum and for a term of not less  than  two  years,  except
that  where such lease provides for an increase in excess of fifteen per
centum, the increase shall  be  automatically  reduced  to  fifteen  per
centum; or
  (5)  the  landlord  and  tenant  by mutual voluntary written agreement
agree to a substantial increase or  decrease  in  dwelling  space  or  a
change  in the services, furniture, furnishings or equipment provided in
the housing accommodations; provided that an owner shall be entitled  to
a  rent  increase  where  there  has  been a substantial modification or
increase of dwelling space or an increase in the services, or  installa-
tion  of  new  equipment or improvements or new furniture or furnishings
provided in or  to  a  tenant's  housing  accommodation.  The  permanent
increase  in  the  maximum  rent  for the affected housing accommodation
shall be one-fortieth of the total cost  incurred  by  the  landlord  in
providing  such  modification  or  increase in dwelling space, services,
furniture, furnishings or equipment, including the cost of installation,
but excluding finance charges provided further  that  an  owner  who  is

S. 4490--A                         15

entitled  to  a rent increase pursuant to this clause shall not be enti-
tled to a further rent increase based upon the installation  of  similar
equipment,  or  new  furniture  or furnishings within the useful life of
such  new  equipment,  or  new furniture or furnishings. The owner shall
give written notice to the commission of any such adjustment pursuant to
this clause; or
  (6) there has been, since March  first,  nineteen  hundred  fifty,  an
increase  in  the rental value of the housing accommodations as a result
of a substantial rehabilitation of the building or housing accommodation
therein which materially adds to the value of  the  property  or  appre-
ciably  prolongs  its  life, excluding ordinary repairs, maintenance and
replacements; or
  (7) there has been since March first, nineteen hundred fifty, a  major
capital  improvement required for the operation, preservation or mainte-
nance of the structure. A MAJOR CAPITAL IMPROVEMENT SHALL NOT INCLUDE AN
ELIGIBLE PROJECT UNDER THE GREEN JOBS-GREEN NEW YORK PROGRAM BY THE  NEW
YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY, ESTABLISHED PURSU-
ANT TO TITLE 9-A OF ARTICLE 8 OF THE PUBLIC AUTHORITIES LAW; or
  (8)  there  has  been  since  March  first, nineteen hundred fifty, in
structures containing  more  than  four  housing  accommodations,  other
improvements  made  with the express consent of the tenants in occupancy
of at least seventy-five  per  centum  of  the  housing  accommodations,
provided,  however,  that  no  adjustment granted hereunder shall exceed
fifteen per centum unless the tenants have agreed to a higher percentage
of increase, as herein provided; or
  (9) there has been, since  March  first,  nineteen  hundred  fifty,  a
subletting  without  written consent from the landlord or an increase in
the number of adult occupants who are not members of the immediate fami-
ly of the tenant, and the landlord has not been compensated therefor  by
adjustment  of  the  maximum rent by lease or order of the commission or
pursuant to the federal act; or
  (10) the presence  of  unique  or  peculiar  circumstances  materially
affecting  the  maximum  rent  has  resulted  in a maximum rent which is
substantially lower than the rents generally prevailing in the same area
for substantially similar housing accommodations.
  S 20. This act shall take effect immediately; provided, however,  that
the  amendments  to  section  26-405 of the city rent and rehabilitation
law, made by section sixteen of this act, shall remain in full force and
effect only as long as the public emergency requiring the regulation and
control of residential rents and evictions  continues,  as  provided  in
subdivision  3  of section 1 of the local emergency housing rent control
act; provided further that the amendments to section 26-511 of the  rent
stabilization law of nineteen hundred sixty-nine, made by section seven-
teen  of this act, shall expire on the same date as such law expires and
shall not affect the expiration of such law as  provided  under  section
26-520 of such law; provided further that the amendments to section 6 of
the  emergency  tenant  protection act of nineteen seventy-four, made by
section eighteen of this act, shall expire on the same date as such  act
expires  and  shall not affect the expiration of such act as provided in
section 17 of chapter 576 of the laws of 1974; and further provided that
the amendments to section 4 of the emergency housing rent  control  law,
made  by  section nineteen of this act, shall expire on the same date as
such law expires and shall not affect the  expiration  of  such  law  as
provided  in  subdivision  2  of section 1 of chapter 274 of the laws of
1946.