senate Bill S5286A

2013-2014 Legislative Session

Relates to the green jobs-green New York on-bill energy service company energy efficiency payment program

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Archive: Last Bill Status - Passed Senate


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

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jun 17, 2014 referred to energy
delivered to assembly
passed senate
Jun 09, 2014 amended on third reading (t) 5286a
Mar 04, 2014 advanced to third reading
Mar 03, 2014 2nd report cal.
Feb 27, 2014 1st report cal.185
Jan 08, 2014 referred to energy and telecommunications
May 15, 2013 referred to energy and telecommunications

Votes

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Feb 27, 2014 - Energy and Telecommunications committee Vote

S5286
8
0
committee
8
Aye
0
Nay
2
Aye with Reservations
0
Absent
0
Excused
0
Abstained
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Committee Vote: Feb 27, 2014

aye wr (2)

Bill Amendments

Original
A (Active)
Original
A (Active)

S5286 - Bill Details

Current Committee:
Law Section:
Public Service Law
Laws Affected:
Add §66-n, Pub Serv L; amd §242, RP L

S5286 - Bill Texts

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Relates to the Green jobs-green New York on-bill energy service company energy efficiency payment program to permit financing for energy efficient services through utility company billing.

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BILL NUMBER:S5286 REVISED 2/20/14

TITLE OF BILL: An act to amend the public service law, the public
authorities law and the real property law, in relation to the green
jobs-green New York on-bill energy service company energy efficiency
payment program

PURPOSE OR GENERAL IDEA OF BILL: To establish an on-bill financing
mechanism for Energy Services Corporations (ESCO's) in the State of
New York in order to promote efficiency upgrades for residential and
small commercial customers that will result in the creation of green
jobs and reductions in emissions.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1 of the bill amends the public service law to include
definitions of new terms in connection with the green jobs-green New
York on-bill energy service company energy efficiency payment program
(the "payment program").

Section 2 amends the public service law in relation to the
determination of a utility company's gross operating revenue derived
from intrastate operations.

Section 3 amends the public service law with respect to a complaint
process in the payment program.

Section 4 amends the public service law with respect to service
charges.

Section 5 amends the public service law to add a new section
establishing the "Green jobs-green New York on bill energy service
company energy efficiency payment program".

Section 6 of the bill amends the public authorities law to add a new
section establishing the "Green jobs-green New York on-bill energy
service company energy efficiency payment program".

Section 7 of the bill amends the public authorities law to amend and
add definitions of certain terms.

Sections 8 - 11 of the bill amend sections of the public authorities
law relating to the purpose and administration of the program.

Section 12 of the bill amends the real property law with respect to
disclosure requirements in connection with the payment program.

Section 13 is the effective date.

JUSTIFICATION: In 2009, the Legislature adopted the landmark "Green
Jobs Green New York Act" to spur the development of green collar jobs,
increase installation of energy efficiency systems and improve our
environment. In 2011, the Legislature took a further step when it
established the on-bill recovery program at NYSERDA. Unfortunately the
potential that was contemplated in those two programs has not been
realized since the uptake has not met expectations.


The goal of this bill, like that of the Green Bank that has been
authorized by the Public Service Commission, is to leverage the
experience and skills of the private sector to promote efficiency and
create green jobs. Energy Service Companies (ESCO's) are in the
business of marketing and selling efficiency services, and they are
highly motivated to do so, since they are reliant on private sector
investment and capital. This bill would create an ESCO on-bill
recovery mechanism on a customer's utility bill. This mechanism will
make payback simpler for the customer and also demonstrate to the
customer that the energy savings effectuated by the efficiency
upgrades are allowing for the loan to be paid back, with the savings,
thereby not increasing the customer's monthly utility bill. Once the
loan is repaid, the customer will enjoy a lower bill permanently as a
result.

This bill does not require any investment of money from NYSERDA or any
state agency. The money committed in 2009 and 2011 would remain right
where it is now All this bill does is allow an ESCO to sell efficiency
products to customers as they do now, while providing the customer
with the easiest method to repay the loan on their utility bill. The
bill also allows the utility companies reasonable recovery of costs
from the ESCO for any costs incurred and refers any and all customer
complaints to the ESCO for resolution. Unleashing the private sector
by allowing an on-bill financing mechanism for ESCO efficiency
upgrades will allow New York State to more readily meet its emissions
reduction goals and allow the original intent of the 2009 and 2011
statutes to be more readily carried out - without investing a dime of
taxpayer money or proceeds from the Regional Greenhouse Gas Initiative
carbon auction. This bill represents a win-win for the environment,
the economy, and customers.

PRIOR LEGISLATIVE HISTORY: This is a new bill.

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: None.

EFFECTIVE DATE: This act shall take effect immediately.

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

                                  5286

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              May 15, 2013
                               ___________

Introduced  by  Sen. MAZIARZ -- read twice and ordered printed, and when
  printed to be committed to the Committee on  Energy  and  Telecommuni-
  cations

AN  ACT  to amend the public service law, the public authorities law and
  the real property law, in relation to the green  jobs-green  New  York
  on-bill energy service company energy efficiency payment program

  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
two new subdivisions 28 and 29 to read as follows:
  28. THE TERM "GREEN JOBS-GREEN NEW YORK ON-BILL ENERGY SERVICE COMPANY
ENERGY  EFFICIENCY  PAYMENT  PROGRAM" OR "PAYMENT PROGRAM," WHEN USED IN
THIS CHAPTER, MEANS A PAYMENT CHARGE APPEARING ON  THE  MONTHLY  UTILITY
BILL  OF A UTILITY CUSTOMER WHO ELECTS TO PARTICIPATE IN THE GREEN JOBS-
GREEN NEW YORK ENERGY SERVICE COMPANY ENERGY EFFICIENCY PAYMENT  PROGRAM
PURSUANT  TO  SECTION  SIXTY-SIX-N  OF  THIS CHAPTER AND TITLE NINE-A OF
ARTICLE EIGHT OF THE PUBLIC AUTHORITIES LAW WITH A PARTICIPATING  ENERGY
SERVICE  COMPANY  FOR  PAYMENT AND SERVICE COSTS ASSOCIATED WITH CAPITAL
IMPROVEMENTS UNDER THAT PROGRAM THROUGH SUCH A PAYMENT CHARGE.
  29. THE TERM "PARTICIPATING ENERGY SERVICE COMPANY"  MEANS  AN  ENTITY
ELIGIBLE TO PROVIDE ENERGY SERVICES TO END-USE CUSTOMERS USING THE TRAN-
SMISSION  AND  DISTRIBUTION  SYSTEM  OF  A  UTILITY CORPORATION AND THAT
PROVIDES  QUALIFIED  ENERGY  EFFICIENCY  SERVICES  THROUGH   THE   GREEN
JOBS-GREEN  NEW  YORK  ON-BILL  ENERGY SERVICE COMPANY ENERGY EFFICIENCY
PAYMENT PROGRAM CONSISTENT WITH NATIONALLY RECOGNIZED EFFICIENCY  STAND-
ARDS,  OR  EFFICIENCY  STANDARDS ESTABLISHED BY THE AUTHORITY, THAT WILL
INCREASE THE ENERGY EFFICIENCY AND CONSERVATION OF AN EXISTING STRUCTURE
UNDER THE PROGRAM.
  S 2. Subdivision 2 of section  18-a  of  the  public  service  law  is
amended by adding a new paragraph (i) to read as follows:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10998-02-3

S. 5286                             2

  (I)  ON-BILL  PAYMENT  AND  SERVICE CHARGES BILLED PURSUANT TO SECTION
SIXTY-SIX-N OF THIS CHAPTER SHALL BE EXCLUDED FROM ANY DETERMINATION  OF
A  UTILITY  COMPANY'S  GROSS  OPERATING REVENUES DERIVED FROM INTRASTATE
UTILITY OPERATIONS FOR PURPOSES OF THIS SECTION.
  S  3.  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  ON-BILL  ENERGY
SERVICE  COMPANY  ENERGY  EFFICIENCY PAYMENT PROGRAM THE UTILITY COMPANY
SHALL ONLY BE REQUIRED TO INFORM THE CUSTOMER OF THE COMPLAINT  HANDLING
PROCEDURES  OF  THE  PARTICIPATING  ENERGY  SERVICE COMPANY, WHICH SHALL
INDEPENDENTLY 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.
  S 4. Paragraph (d) of subdivision  6  of  section  65  of  the  public
service  law,  as amended by chapter 388 of the laws of 2011, 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 recovery pursuant to section sixty-six-m of this article AND THE
INSTALLATION AND SERVICE OF ENERGY  EFFICIENCY  SERVICES  FOR  CUSTOMERS
PARTICIPATING  IN  THE  GREEN JOBS-GREEN NEW YORK ON-BILL ENERGY SERVICE
COMPANY  ENERGY  EFFICIENCY  PAYMENT   PROGRAM   PURSUANT   TO   SECTION
SIXTY-SIX-N OF THIS ARTICLE.
  S 5. The public service law is amended by adding a new section 66-n to
read as follows:
  S 66-N. GREEN JOBS-GREEN NEW YORK ON-BILL ENERGY SERVICE COMPANY ENER-
GY  EFFICIENCY  PAYMENT  PROGRAM.  1. (A) THE COMMISSIONER 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  ENERGY  SERVICE COMPANY ENERGY EFFICIENCY PAYMENT
PROGRAM ESTABLISHED PURSUANT TO THIS SECTION AND 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)  THIS  PROGRAM SHALL BE AVAILABLE TO CUSTOMERS WHO HAVE EXECUTED A
WRITTEN AGREEMENT  FOR  THE  DELIVERY  OF  QUALIFIED  ENERGY  EFFICIENCY
SERVICES FROM A PARTICIPATING ENERGY SERVICE COMPANY; PROVIDED, HOWEVER,
THAT  SUCH CUSTOMERS MUST BE THE UTILITY COMPANY'S CUSTOMER OF RECORD TO
WHICH SUCH ON-BILL PAYMENT CHARGES WILL APPLY.
  (C) EACH PARTICIPATING ENERGY SERVICE COMPANY SHALL  IDENTIFY  TO  THE
APPROPRIATE  UTILITY  COMPANY  EACH  CUSTOMER WHO HAS EXECUTED A WRITTEN
AGREEMENT WITH THE ENERGY SERVICE COMPANY FOR THE PROVISION OF QUALIFIED
ENERGY EFFICIENCY SERVICES THROUGH THE ON-BILL PAYMENT MECHANISM AND THE
AMOUNT OF EACH MONTHLY PAYMENT. EACH UTILITY COMPANY  SHALL  BILL  THEIR
CUSTOMERS  THAT  HAS  OBTAINED  ENERGY  EFFICIENCY  IMPROVEMENTS  FROM A
PARTICIPATING ENERGY SERVICE COMPANY  THE  AMOUNT  DUE  AS  THE  ON-BILL
PAYMENT.
  (D)  THE  ON-BILL PAYMENT SHALL BE COLLECTED ON BILLS FROM THE CUSTOM-
ER'S  ELECTRIC  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

S. 5286                             3

THE  CASE  THE  ON-BILL  PAYMENT  CHARGES SHALL BE COLLECTED ONLY ON THE
CUSTOMER'S GAS CORPORATION BILLS.
  2. FOR PURPOSES OF CARRYING OUT THE REQUIREMENTS OF THIS SECTION, EACH
UTILITY  COMPANY SHALL SUBMIT AN IMPLEMENTATION PLAN FOR THE GREEN JOBS-
GREEN NEW YORK ON-BILL ENERGY SERVICE COMPANY ENERGY EFFICIENCY  PAYMENT
PROGRAM  WITHIN  ONE  HUNDRED  TWENTY DAYS OF THE EFFECTIVE DATE OF THIS
SECTION TO THE COMMISSION. SUCH PLAN SHALL  INCLUDE  AN  EXPLANATION  OF
ESTIMATED  COSTS  ASSOCIATED  WITH IMPLEMENTATION OF THE ON-BILL PAYMENT
PROGRAM, AS WELL AS A SHOWING THAT  THE  UTILITY  COMPANY  WILL  UTILIZE
EXISTING  ELECTRONIC  DATA  INTERCHANGE INFRASTRUCTURE OR OTHER EXISTING
BILLING INFRASTRUCTURE TO THE MAXIMUM EXTENT PRACTICABLE. THE COMMISSION
SHALL MAKE AN APPROVAL DETERMINATION WITHIN NINETY DAYS  OF  SUBMISSION.
IF  SUCH  APPROVAL  IS DENIED, THE UTILITY COMPANY WILL HAVE THIRTY DAYS
AFTER THE NOTICE OF DISAPPROVAL TO MEET THE REQUIREMENTS  FOR  APPROVAL.
EACH  UTILITY  COMPANY  SHALL  IMPLEMENT  THE  GREEN JOBS-GREEN NEW YORK
ON-BILL ENERGY SERVICE COMPANY ENERGY EFFICIENCY PAYMENT PROGRAM  WITHIN
SIX MONTHS OF APPROVAL BY THE COMMISSION.
  (A)  IN  ADMINISTERING  THE  GREEN JOBS-GREEN NEW YORK ON-BILL PAYMENT
PROGRAM, THE PARTICIPATING ENERGY SERVICE COMPANY SHALL MAKE  REIMBURSE-
MENTS TO UTILITY COMPANIES FOR REASONABLE AND NECESSARY COSTS ASSOCIATED
WITH THE IMPLEMENTATION AND MAINTENANCE OF THE GREEN JOBS-GREEN NEW YORK
ON-BILL ENERGY SERVICE COMPANY PAYMENT PROGRAM.
  (B) THE COMMISSION MAY SUSPEND OR TERMINATE A UTILITY COMPANY'S OFFER-
ING  OF THE ON-BILL PAYMENT PROVIDED THAT THE COMMISSION MAKES A FINDING
THAT THERE IS A SIGNIFICANT INCREASE IN UTILITY  SERVICE  DISCONNECTIONS
THAT  THE  COMMISSION  DETERMINES  IS  DIRECTLY  RELATED  TO THE ON-BILL
PAYMENT, OR A FINDING OF OTHER GOOD CAUSE.
  (C) ONE HUNDRED PERCENT OF THE ENERGY EFFICIENT SAVINGS REALIZED  FROM
THE  IMPLEMENTATION  OF QUALIFIED ENERGY EFFICIENCY SERVICES IMPLEMENTED
THROUGH ENERGY SERVICE COMPANY ENERGY EFFICIENCY PAYMENT PROGRAMS IN THE
UTILITY COMPANIES' SERVICE TERRITORIES SHALL BE CREDITED TO  THE  APPRO-
PRIATE  ELECTRIC  CORPORATION'S  AND/OR GAS CORPORATION'S ENERGY SAVINGS
TARGETS ESTABLISHED BY THE COMMISSION IN THE ENERGY EFFICIENCY PORTFOLIO
STANDARD PROCEEDING.
  (D) UTILITY COMPANIES MAY TERMINATE UTILITY SERVICE FOR NON-PAYMENT OF
ON-BILL PAYMENT CHARGES SUBJECT TO THE RIGHTS  OF  THE  CUSTOMER  ESTAB-
LISHED  UNDER  ARTICLE  TWO  OF  THIS  CHAPTER  EXCEPT THE RIGHT TO HAVE
PAYMENT OF ARREARS OF INSTALLMENTS OF ON-BILL PAYMENT CHARGES SUBJECT TO
A DEFERRED PAYMENT AGREEMENT UNDER SECTION THIRTY-SEVEN OF THIS CHAPTER.
  (E) THE RESPONSIBILITIES OF THE UTILITY COMPANY SHALL BE LIMITED SOLE-
LY TO PROVIDING BILLING, PAYMENT PROCESSING, AND COLLECTION SERVICES FOR
ON-BILL PAYMENTS.
  (F) THE COMMISSION, IN CONJUNCTION WITH EACH UTILITY AND EACH  PARTIC-
IPATING  ENERGY  SERVICE  COMPANY, SHALL AUTHORIZE A PURCHASE OF RECEIV-
ABLES PROGRAM FOR EACH UTILITY COMPANY AT A DISCOUNT RATE EQUAL  TO  THE
UTILITY'S  ACTUAL  UNCOLLECTIBLE  RATE FOR THE GREEN JOBS-GREEN NEW YORK
ON-BILL ENERGY SERVICE COMPANY ENERGY EFFICIENCY PAYMENT  PROGRAM.  THIS
DISCOUNT  RATE SHALL BE OFFSET FROM THE MONTHLY PAYMENTS A UTILITY MAKES
TO A  PARTICIPATING  ENERGY  SERVICE  COMPANY.  THIS  PROGRAM  SHALL  BE
DESIGNED  TO ENSURE THAT A UTILITY IS NOT AT RISK FOR ANY BAD DEBT ASSO-
CIATED WITH THE GREEN JOBS-GREEN NEW YORK ON-BILL ENERGY SERVICE COMPANY
ENERGY EFFICIENCY PAYMENT PROGRAM.
  (G) WHEN THE CUSTOMER'S UTILITY ACCOUNT  AT  THE  UTILITY  COMPANY  IS
CLOSED,  ANY  CHARGES  IN ARREARS SHALL BE DUE AND OWING, AND COLLECTION
SHALL BE THE RESPONSIBILITY OF THE PARTICIPATING ENERGY SERVICE COMPANY.

S. 5286                             4

  (H) UNLESS OTHERWISE PRECLUDED BY  LAW,  PARTICIPATION  IN  THE  GREEN
JOBS-GREEN  NEW  YORK  ON-BILL  ENERGY SERVICE COMPANY ENERGY EFFICIENCY
PAYMENT PROGRAM SHALL NOT AFFECT A CUSTOMER'S ELIGIBILITY FOR ANY REBATE
OR INCENTIVE OFFERED BY A UTILITY COMPANY. UTILITY  COMPANIES  MAY  MAKE
AVAILABLE  TO  CUSTOMERS  WHO  PARTICIPATE  IN AN ENERGY SERVICE COMPANY
ENERGY EFFICIENCY PAYMENT PROGRAM ANY REBATES FOR ELIGIBLE ENERGY  EFFI-
CIENCY  MEASURES  AVAILABLE  TO CUSTOMERS WHO DO NOT PARTICIPATE IN SUCH
PROGRAMS.
  (I) THE COMMISSION SHALL NOT APPROVE ANY APPLICATION FOR  THE  CONVER-
SION  TO  SUBMETERING OF ANY MASTER METER THAT IS SUBJECT TO ANY ON-BILL
PAYMENT CHARGES.
  S 6. Section 1020-kk of the public authorities law, as  renumbered  by
chapter 388 of the laws of 2011, is renumbered section 1020-ll and a new
section 1020-kk is added to read as follows:
  S  1020-KK.  GREEN  JOBS-GREEN NEW YORK ON-BILL ENERGY SERVICE COMPANY
ENERGY EFFICIENCY PAYMENT PROGRAM. 1. FOR PURPOSES OF CARRYING  OUT  THE
REQUIREMENTS OF THIS TITLE, THE AUTHORITY SHALL SUBMIT AN IMPLEMENTATION
PLAN  FOR  THE  GREEN JOBS-GREEN NEW YORK ON-BILL PAYMENT PROGRAM WITHIN
ONE HUNDRED TWENTY DAYS OF THE EFFECTIVE DATE OF  THIS  SECTION  TO  THE
PUBLIC  SERVICE  COMMISSION.  SUCH  PLAN SHALL INCLUDE AN EXPLANATION OF
ESTIMATED COSTS ASSOCIATED WITH IMPLEMENTATION OF  THE  ON-BILL  PAYMENT
PROGRAM,  AS  WELL AS A SHOWING THAT THE AUTHORITY WILL UTILIZE EXISTING
ELECTRONIC DATA INTERCHANGE INFRASTRUCTURE  OR  OTHER  EXISTING  BILLING
INFRASTRUCTURE  TO THE MAXIMUM EXTENT PRACTICABLE.  IN ADMINISTERING THE
GREEN JOBS-GREEN NEW YORK ON-BILL ENERGY SERVICE  COMPANY  ENERGY  EFFI-
CIENCY  PAYMENT  PROGRAM, THE PARTICIPATING ENERGY SERVICE COMPANY SHALL
MAKE REIMBURSEMENTS TO THE AUTHORITY FOR REASONABLE AND NECESSARY  COSTS
ASSOCIATED WITH THE IMPLEMENTATION AND MAINTENANCE OF THE JOBS-GREEN NEW
YORK  ON-BILL  ENERGY  SERVICE COMPANY PAYMENT PROGRAM. THE RESPONSIBIL-
ITIES OF THE AUTHORITY SHALL BE LIMITED  SOLELY  TO  PROVIDING  BILLING,
PAYMENT  PROCESSING,  AND  COLLECTION SERVICES FOR ON-BILL PAYMENTS. THE
COMMISSION, IN CONJUNCTION WITH  EACH  UTILITY  AND  EACH  PARTICIPATING
ENERGY  SERVICE  COMPANY,  SHALL  AUTHORIZE  A  PURCHASE  OF RECEIVABLES
PROGRAM FOR THE AUTHORITY AT A DISCOUNT RATE EQUAL  TO  THE  AUTHORITY'S
ACTUAL  UNCOLLECTIBLE  RATE  FOR  THE  GREEN JOBS-GREEN NEW YORK ON-BILL
ENERGY SERVICE COMPANY ENERGY EFFICIENCY PAYMENT PROGRAM. THIS  DISCOUNT
RATE  SHALL BE OFFSET FROM THE MONTHLY PAYMENTS THE AUTHORITY MAKES TO A
PARTICIPATING ENERGY SERVICE COMPANY.  THIS PROGRAM SHALL BE DESIGNED TO
ENSURE THAT A UTILITY IS NOT AT RISK FOR ANY BAD  DEBT  ASSOCIATED  WITH
THE  GREEN  JOBS-GREEN  NEW  YORK  ON-BILL ENERGY SERVICE COMPANY ENERGY
EFFICIENCY PAYMENT PROGRAM. THE PUBLIC SERVICE COMMISSION SHALL MAKE  AN
APPROVAL  DETERMINATION  WITHIN NINETY DAYS OF SUBMISSION. IF THE PUBLIC
SERVICE COMMISSION DOES NOT APPROVE  OF  THE  IMPLEMENTATION  PLAN,  THE
AUTHORITY  WILL HAVE THIRTY DAYS AFTER THE NOTICE OF DISAPPROVAL TO MEET
THE REQUIREMENTS FOR FINAL APPROVAL. UPON  THE  PUBLIC  SERVICE  COMMIS-
SION'S  APPROVAL, THE AUTHORITY SHALL IMPLEMENT THE GREEN JOBS-GREEN NEW
YORK ON-BILL PAYMENT PROGRAM WITHIN SIX MONTHS. 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, THE AUTHORITY SHALL UTILIZE EXISTING ELEC-
TRONIC DATA INTERCHANGE INFRASTRUCTURE OR OTHER EXISTING BILLING INFRAS-
TRUCTURE TO IMPLEMENT  THEIR  BILLING  AND  COLLECTION  RESPONSIBILITIES
UNDER THIS SECTION.
  2.  THE  AUTHORITY  MAY  SUSPEND  ITS  OFFERING OF THE ON-BILL PAYMENT
CHARGE PROVIDED THAT THE AUTHORITY MAKES  A  FINDING  THAT  THERE  IS  A
SIGNIFICANT INCREASE IN UTILITY SERVICE DISCONNECTIONS THAT THE AUTHORI-

S. 5286                             5

TY  DETERMINES  IS DIRECTLY RELATED TO THE ON-BILL PAYMENT, OR A FINDING
OF OTHER GOOD CAUSE.
  S  7.  The  opening paragraph of subdivision 12 of section 1891 of the
public authorities law, as added by chapter 487 of the laws of 2009,  is
amended and a new subdivision 16 is added to read as follows:
  12.  "Qualified  energy efficiency services" means a modification to a
structure, based on recommendations FROM A PARTICIPATING ENERGY  SERVICE
COMPANY  THAT  WILL INCREASE THE ENERGY EFFICIENCY AND CONSERVATION OF A
STRUCTURE; OR AS contained  in  an  energy  audit  performed  under  the
program  created under section eighteen hundred [ninety-two] NINETY-FIVE
of this title; or as otherwise  approved  by  the  authority,  which  is
consistent with NATIONALLY RECOGNIZED EFFICIENCY STANDARDS, OR EFFICIEN-
CY standards established by the authority, that will increase the energy
efficiency  and conservation of an existing structure, including but not
limited to:
  16. "PARTICIPATING ENERGY SERVICE COMPANY" MEANS AN ENTITY ELIGIBLE TO
PROVIDE ENERGY SERVICES TO END-USE CUSTOMERS USING THE TRANSMISSION  AND
DISTRIBUTION SYSTEM OF A UTILITY CORPORATION AND THAT PROVIDES QUALIFIED
ENERGY EFFICIENCY SERVICES THROUGH THE GREEN JOBS-GREEN NEW YORK ON-BILL
ENERGY SERVICE COMPANY ENERGY EFFICIENCY PAYMENT PROGRAM CONSISTENT WITH
NATIONALLY  RECOGNIZED  EFFICIENCY  STANDARDS,  OR  EFFICIENCY STANDARDS
ESTABLISHED BY THE AUTHORITY, THAT WILL INCREASE THE  ENERGY  EFFICIENCY
AND CONSERVATION OF AN EXISTING STRUCTURE UNDER THE PROGRAM.
  S  8.  Subdivision 6 of section 1892 of the public authorities law, as
added by chapter 487 of the laws of 2009, is amended to read as follows:
  6. use innovative financing, LEASING, PAYMENT AND  SERVICE  mechanisms
to  finance AND MAKE PAYMENTS FOR energy efficiency improvements through
energy cost savings.
  S 9. Subdivision 3 of section 1893 of the public authorities  law,  as
added by chapter 487 of the laws of 2009, is amended to read as follows:
  3.  enter  into  contracts  with  one  or more program implementers to
perform such functions as the authority deems appropriate; [and]
  S 10. Subdivision 4 of section 1893 of the public authorities  law  is
renumbered  subdivision  5  and  a new subdivision 4 is added to read as
follows:
  4. ENCOURAGE AND PROMOTE  PRIVATE  SECTOR  INVESTMENT  AND  GREEN  JOB
EMPLOYMENT  OPPORTUNITIES  THROUGH APPLICANT IMPLEMENTATION OF QUALIFIED
ENERGY EFFICIENCY SERVICES  BY  ENERGY  SERVICE  COMPANIES  THROUGH  THE
ESTABLISHMENT  OF  AN ON-BILL LEASING OR PAYMENT MECHANISM FOR APPLICANT
PAYMENTS TO ENERGY SERVICE COMPANIES FOR THE  INSTALLATION,  UTILIZATION
AND  SERVICE  OF QUALIFIED ENERGY EFFICIENCY SERVICES PROVIDED THAT SUCH
ON-BILL PAYMENT MECHANISM SHALL  PROVIDE  FOR  THE  UTILIZATION  OF  ANY
ON-BILL  PROGRAMS  ESTABLISHED  PURSUANT  TO  SECTION SIXTY-SIX-N OF THE
PUBLIC SERVICE LAW AND SECTION ONE THOUSAND TWENTY-KK OF  THIS  CHAPTER;
AND
  S  11. Subdivision 1 of section 1895 of the public authorities law, as
added by chapter 487 of the laws of 2009, is amended to read as follows:
  1. The program shall make available to applicants who ARE ELIGIBLE  TO
PARTICIPATE  IN  THE  GREEN JOBS-GREEN NEW YORK ON-BILL RECOVERY PROGRAM
PURSUANT TO SECTION SIXTY-SIX-N OF THE PUBLIC SERVICE LAW AND  would  be
eligible  to  apply  for  financial assistance under this section energy
audits performed by certified auditors or  auditors  using  commonly-em-
ployed energy auditing tools and technologies, as determined appropriate
by  the  authority.  The  authority  shall  be authorized to dedicate an
appropriate portion of program funds allocated for the funding of energy
audits pursuant to section eighteen hundred ninety-nine-a of this  title

S. 5286                             6

to non-residential properties that are occupied or used by a small busi-
ness or not-for-profit corporation with ten or fewer employees.
  S  12. Section 242 of the real property law is amended by adding a new
subdivision 5 to read as follows:
  5. DISCLOSURE PRIOR TO THE SALE OF REAL  PROPERTY  TO  WHICH  A  GREEN
JOBS-GREEN  NEW  YORK  ON-BILL  ENERGY SERVICE COMPANY ENERGY EFFICIENCY
PAYMENT APPLIES. (A) ANY PERSON, FIRM, COMPANY,  PARTNERSHIP  OR  CORPO-
RATION  OFFERING TO SELL REAL PROPERTY WHICH IS SUBJECT TO A GREEN JOBS-
GREEN NEW YORK ON-BILL ENERGY SERVICE COMPANY ENERGY EFFICIENCY  PAYMENT
PURSUANT  TO TITLE NINE-A OF ARTICLE EIGHT OF THE PUBLIC AUTHORITIES LAW
AND SECTION SIXTY-SIX-N OF THE PUBLIC SERVICE LAW SHALL PROVIDE  WRITTEN
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  ENERGY SERVICE COMPANY ENERGY EFFICIENCY
PAYMENT." SUCH NOTICE SHALL STATE THE PAYMENT SCHEDULE, A DESCRIPTION OF
THE ENERGY EFFICIENCY SERVICES INSTALLED AND SERVICES PROVIDED,  AND  AN
EXPLANATION  OF  THE  BENEFIT OF THE GREEN JOBS-GREEN NEW YORK QUALIFIED
ENERGY EFFICIENCY SERVICES. SUCH NOTICE SHALL BE PROVIDED BY THE  SELLER
PRIOR TO ACCEPTING A PURCHASE OFFER.
  (B) ANY PROSPECTIVE OR ACTUAL PURCHASER WHO HAS SUFFERED A LOSS DUE TO
A  VIOLATION  OF  THIS  SUBDIVISION  IS  ENTITLED  TO RECOVER ANY ACTUAL
DAMAGES INCURRED FROM THE PERSON OFFERING TO SELL OR SELLING  SAID  REAL
PROPERTY.
  S 13. This act shall take effect immediately.

S5286A (ACTIVE) - Bill Details

Current Committee:
Law Section:
Public Service Law
Laws Affected:
Add §66-n, Pub Serv L; amd §242, RP L

S5286A (ACTIVE) - Bill Texts

view summary

Relates to the Green jobs-green New York on-bill energy service company energy efficiency payment program to permit financing for energy efficient services through utility company billing.

view sponsor memo
BILL NUMBER:S5286A

TITLE OF BILL: An act to amend the public service law and the real
property law, in relation to establishing on-bill energy services compa-
ny energy efficiency payment program

PURPOSE OR GENERAL IDEA OF BILL: To establish an on-bill financing mech-
anism for Energy Services Corporations (ESCO's) in the State of New York
in order to promote efficiency upgrades for residential and small
commercial customers that will result in the creation of green jobs and
reductions in emissions.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1: Amends the public service law to add a new section 66-n that
directs the Public Service Commission to require combined gas and elec-
tric utility companies to provide a program to allow ESCO's to utilize
on-bill financing pursuant to a written contract and regulations of the
commission Requires each combined gas and electric utility company to
submit an implementation plan for approval by the commission requires
the credits from such program to be applied to each utilities targets
pursuant to the energy efficiency portfolio standard and allows for
suspension of the program pursuant to a hearing and direction of the
commission. Lays out the specific requirements of the program as it
relates to bill payments, processing, and handling of accounts in
arrears and Defines qualified energy efficiency services and participat-
ing energy services company.

Section 2: Amends the Real Property tax law to require property disclo-
sure before purchase of any property subject to a loan pursuant to this
program.

Section 3: Sets forth the effective date.

JUSTIFICATION: In 2009, the Legislature adopted the landmark "Green Jobs
Green New York Act" to spur the development of green collar jobs,
increase installation of energy efficiency systems and improve our envi-
ronment. In 2011, the Legislature took a further step when it estab-
lished the on-bill recovery program at NYSERDA. Unfortunately the poten-
tial that was contemplated in those two programs has not been realized
since the uptake has not met expectations.

The goal of this bill, like that of the Green Bank that has been author-
ized by the Public Service Commission, is to leverage the experience and
skills of the private sector to promote efficiency and create green
jobs. Energy Service Companies (ESCO's) are in the business of marketing
and selling efficiency services, and they are highly motivated to do so,
since they are reliant on private sector investment and capital. This
bill would create an ESCO on-bill recovery mechanism on a customer's
utility bill. This mechanism will make payback simpler for the customer
and also demonstrate to the customer that the energy savings effectuated
by the efficiency upgrades are allowing for the loan to be paid back,

with the savings, thereby not increasing the customer's monthly utility
bill. Once the loan is repaid, the customer will enjoy a lower bill
permanently as a result.

This bill does not require any investment of money from NYSERDA or any
state agency. The money committed in 2009 and 2011 would remain right
where it is now All this bill does is allow an ESCO to sell efficiency
products to customers as they do now, while providing the customer with
the easiest method to repay the loan on their utility bill The bill also
allows the utility companies reasonable recovery of costs from the ESCO
for any costs incurred and refers any and all customer complaints to the
ESCO for resolution. Unleashing the private sector by allowing an
on-bill financing mechanism for ESCO efficiency upgrades will allow New
York State to more readily meet its emissions reduction goals and allow
the original intent of the 2009 and 2011 statutes to be more readily
carried out - without investing a dime of taxpayer money or proceeds
from the Regional Greenhouse Gas Initiative carbon auction. This bill
represents a win-win for the environment, the economy, and customers.

PRIOR LEGISLATIVE HISTORY: This is a new bill.

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: None.

EFFECTIVE DATE: This act shall take effect immediately.

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

                                 5286--A
    Cal. No. 185

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              May 15, 2013
                               ___________

Introduced  by  Sen. MAZIARZ -- read twice and ordered printed, and when
  printed to be committed to the Committee on  Energy  and  Telecommuni-
  cations  --  recommitted  to  the Committee on Energy and Telecommuni-
  cations in accordance with Senate Rule 6, sec. 8 -- reported favorably
  from said committee, ordered to first and second report, ordered to  a
  third  reading,  amended and ordered reprinted, retaining its place in
  the order of third reading

AN ACT to amend the public service law and the  real  property  law,  in
  relation  to establishing on-bill energy services company energy effi-
  ciency payment program

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

  Section  1.  The public service law is amended by adding a new section
66-n to read as follows:
  S 66-N.   ON-BILL ENERGY SERVICES COMPANY  ENERGY  EFFICIENCY  PAYMENT
PROGRAM.  1. (A) THE COMMISSION SHALL REQUIRE EACH COMBINED ELECTRIC AND
GAS UTILITY TO PROVIDE A PROGRAM FOR THE BILLING AND THE  REMITTANCE  OF
PAYMENTS RECEIVED FOR THE PAYMENT OF CONTRACTUALLY OBLIGATED PAYMENTS OF
ITS  PARTICIPATING  CUSTOMERS  FOR ENERGY EFFICIENCY PROGRAMS AS DEFINED
HEREIN PROVIDED BY A NEW YORK ENERGY SERVICES COMPANY  AND  APPROVED  BY
THE COMMISSION. TO THE MAXIMUM EXTENT PRACTICABLE, COMBINED ELECTRIC AND
GAS  UTILITIES  SHALL  UTILIZE  EXISTING  BILLING  PROCESSES ESTABLISHED
PURSUANT TO TITLE NINE-A OF ARTICLE EIGHT OF THE PUBLIC AUTHORITIES LAW.
  (B) THIS PROGRAM SHALL BE AVAILABLE TO CUSTOMERS WHO  HAVE  A  WRITTEN
CONTRACT  PROVIDING  FOR ON-BILL PAYMENT FOR QUALIFIED ENERGY EFFICIENCY
SERVICES PROVIDED HOWEVER, THAT SUCH  CUSTOMERS  MUST  BE  THE  COMBINED
ELECTRIC  AND  GAS  UTILITIES'  CUSTOMER OF RECORD TO WHICH SUCH ON-BILL
PAYMENT CHARGES WILL APPLY.
  (C) THE COMMISSION SHALL PROMULGATE REGULATIONS TO IMPLEMENT A PROGRAM
PURSUANT TO THIS SECTION WHICH SHALL INCLUDE BUT NOT BE LIMITED  TO  THE
FOLLOWING: A REQUIREMENT FOR A CONTRACT BETWEEN THE PARTICIPATING ENERGY

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10998-04-4

S. 5286--A                          2

SERVICES  COMPANY  AND  CUSTOMER  WHICH INCORPORATES A SPECIFIC AUTHORI-
ZATION BY THE CUSTOMER OF THE ON-BILL PAYMENT MECHANISM, A HOLD HARMLESS
PROVISION APPLICABLE TO THE COMBINED ELECTRIC AND GAS UTILITY  FROM  ANY
LIABILITY  ARISING FROM THE CONTRACT BETWEEN THE ENERGY SERVICES COMPANY
AND  CUSTOMER,  ESTABLISHING  PARTICIPATION  REQUIREMENTS   FOR   ENERGY
SERVICES  COMPANIES,  ESTABLISHING  A  METHOD  FOR  NOTIFICATION  BY THE
PARTICIPATING ENERGY SERVICES COMPANY TO THE COMBINED ELECTRIC  AND  GAS
UTILITY  AND  THE COMMISSION OF THE CUSTOMER AGREEMENT TO PARTICIPATE IN
THE PROGRAM AND THE BILLING AMOUNT FOR THE ON-BILL PAYMENT,  A  SCHEDULE
FOR  REMITTANCE  OF FUNDS RECEIVED FROM ON-BILL PAYMENTS, AND SUCH OTHER
REGULATIONS REQUIRED FOR IMPLEMENTATION.
  (D) A COMBINED ELECTRIC AND GAS  UTILITY  SHALL  NOT  BE  REQUIRED  TO
PROVIDE ON-BILL PAYMENT FOR SERVICES THAT ARE NOT QUALIFIED ENERGY EFFI-
CIENCY SERVICES.
  (E)  ON-BILL  PAYMENT CHARGES BILLED PURSUANT TO THIS SECTION SHALL BE
EXCLUDED FROM ANY DETERMINATION OF A UTILITY COMPANY'S  GROSS  OPERATING
REVENUES  DERIVED  FROM  INTRASTATE  UTILITY  OPERATIONS FOR PURPOSES OF
SECTION EIGHTEEN-A OF THIS CHAPTER.
  (F) WHEN A COMPLAINT IS RECEIVED BY A COMBINED ELECTRIC AND GAS UTILI-
TY COMPANY THAT IS RELATED TO WORK PERFORMANCE IN CONNECTION WITH QUALI-
FIED ENERGY EFFICIENCY  SERVICES  BY  A  PARTICIPATING  ENERGY  SERVICES
COMPANY  SUCH  UTILITY  COMPANY  SHALL  ONLY  BE  REQUIRED TO DIRECT THE
CUSTOMER TO CONTACT THE ENERGY SERVICES COMPANY AND INFORM THE  CUSTOMER
TO  CONTACT  THE  COMMISSION  IF A RESOLUTION CANNOT BE REACHED WITH THE
ENERGY SERVICES COMPANY. SUCH COMPLAINTS  SHALL  NOT  BE  DEEMED  TO  BE
COMPLAINTS ABOUT THE UTILITY SERVICE OR ENERGY SERVICE COMPANY'S COMMOD-
ITY SERVICE IN ANY OTHER COMMISSION ACTION OR PROCEEDING.
  (G)  THE COMBINED ELECTRIC AND GAS UTILITY SHALL NOT BE LIABLE FOR ANY
ACTIONS OR DAMAGES ARISING OUT OF  THE  CONDUCT,  WHETHER  NEGLIGENT  OR
INTENTIONAL, OF A PARTICIPATING ENERGY SERVICES COMPANY AND SUCH COMPANY
SHALL  INDEMNIFY  AND  HOLD  HARMLESS  THE UTILITY AGAINST LIABILITY FOR
DAMAGE CONTRIBUTED TO, CAUSED BY, OR RESULTING FROM  THE  NEGLIGENCE  OR
OTHER CULPABLE CONDUCT OF THE PARTICIPATING ENERGY SERVICES COMPANY.
  (H) A COMBINED ELECTRIC AND GAS UTILITY MAY PROVIDE MARKETING SERVICES
TO  A  PARTICIPATING  ENERGY  SERVICES  COMPANIES FOR COMPENSATION TO BE
AGREED UPON BETWEEN THE PARTIES.
  2. FOR PURPOSES OF CARRYING OUT THE REQUIREMENTS OF THIS SECTION, EACH
COMBINED ELECTRIC AND GAS UTILITY SHALL SUBMIT AN IMPLEMENTATION PLAN TO
THE COMMISSION WITHIN ONE HUNDRED TWENTY DAYS OF A REQUEST BY AN  ENERGY
SERVICES  COMPANY APPROVED BY THE COMMISSION. SUCH PLAN SHALL INCLUDE AN
EXPLANATION OF THE ESTIMATED COSTS FOR  IMPLEMENTATION  OF  THE  ON-BILL
PAYMENT PROGRAM PROVIDED FOR IN THIS SECTION.
  (A)  THE  PARTICIPATING  ENERGY  SERVICES  COMPANY SHALL REIMBURSE THE
COMBINED ELECTRIC AND GAS UTILITY THROUGH A DEDUCTION FROM  ITS  MONTHLY
REMITTANCES  OF THE REASONABLE AND NECESSARY COSTS OF THE IMPLEMENTATION
AND MAINTENANCE  OF  THE  ON-BILL  ENERGY  SERVICES  COMPANY  EFFICIENCY
PAYMENT  PROGRAM  AS  APPROVED  BY THE COMMISSION ON AN ANNUAL BASIS. TO
ENSURE PROPER PROGRAM DESIGN AND IMPLEMENTATION, A COMBINED ELECTRIC AND
GAS UTILITY SHALL DURING THE INITIAL YEAR OF OPERATION LIMIT THE  NUMBER
OF  PARTICIPATING  CUSTOMERS  TO NO MORE THAN THREE PERCENT OF ITS TOTAL
CUSTOMERS ON A FIRST-COME, FIRST-SERVED BASIS. PRIOR  TO  REACHING  SUCH
LIMIT  THE  COMMISSION SHALL REVIEW THE AFORESAID LIMIT, AND THE COMMIS-
SION SHALL INCREASE SUCH LIMIT PROVIDED THAT THE  COMMISSION  FINDS  THE
PROGRAM HAS NOT CAUSED SIGNIFICANT HARM TO THE COMBINED ELECTRIC AND GAS
UTILITY OR ITS CUSTOMERS.

S. 5286--A                          3

  (B) THE COMMISSION MAY SUSPEND OR TERMINATE A UTILITY COMPANY'S OFFER-
ING  OF  THE  ON-BILL  PAYMENT AFTER NOTICE AND HEARING PURSUANT TO THIS
SECTION PROVIDED THAT THE COMMISSION MAKES A FINDING EITHER  THAT  THERE
IS  NOT SUFFICIENT USAGE TO JUSTIFY THE COST, OR A FINDING OF OTHER GOOD
CAUSE.
  (C)  ONE HUNDRED PERCENT OF THE ENERGY EFFICIENT SAVINGS REALIZED FROM
THE IMPLEMENTATION OF QUALIFIED ENERGY EFFICIENCY  SERVICES  IMPLEMENTED
THROUGH  ENERGY  SERVICES  COMPANY ENERGY EFFICIENCY PAYMENT PROGRAMS IN
THE COMBINED ELECTRIC AND GAS UTILITY SERVICE TERRITORIES SHALL BE CRED-
ITED TO THE APPROPRIATE UTILITY'S ENERGY SAVINGS TARGETS ESTABLISHED  BY
THE COMMISSION IN THE ENERGY EFFICIENCY PORTFOLIO STANDARD PROCEEDING.
  3.  SCHEDULES  FOR  BILLING AND REMITTANCE OF ON-BILL RECOVERY CHARGES
SHALL PROVIDE:
  (A) THAT BILLING AND REMITTANCE SERVICES SHALL BE AVAILABLE TO CUSTOM-
ERS THAT HAVE MET  ANY  STANDARDS  ESTABLISHED  BY  THE  COMMISSION  FOR
PARTICIPATION  IN THE ON-BILL RECOVERY PURSUANT TO THIS SECTION AND HAVE
EXECUTED A CONTRACT AS REQUIRED HEREIN; PROVIDED HOWEVER,  FOR  RESIDEN-
TIAL  PROPERTIES ANY SUCH CUSTOMER MUST HOLD PRIMARY OWNERSHIP OR REPRE-
SENT THE PRIMARY OWNER OR OWNERS OF THE PREMISES OR REPRESENT THE PRIMA-
RY HOLDER OR HOLDERS OF METER ACCOUNT RESPONSIBILITY FOR ALL  METERS  TO
WHICH SUCH ON-BILL RECOVERY CHARGES WILL APPLY.
  (B)  THE  RESPONSIBILITIES  OF  THE  COMBINED ELECTRIC AND GAS UTILITY
SHALL BE LIMITED SOLELY TO PROVIDING  BILLING,  PAYMENT  PROCESSING  AND
REMITTANCE SERVICES FOR ON-BILL PAYMENTS.
  (C) UNLESS OTHERWISE PRECLUDED BY LAW OR THE COMMISSION, PARTICIPATION
IN  THIS  PROGRAM  SHALL  NOT  AFFECT THE CUSTOMERS' ELIGIBILITY FOR ANY
REBATE OR OTHER INCENTIVE OFFERED BY A COMBINED ELECTRIC AND GAS  UTILI-
TY.
  (D)  ANY  CHARGES  IN  ARREARS WHICH ARE DUE AND OWING, THE COLLECTION
THEREOF SHALL BE THE SOLE RESPONSIBILITY  OF  THE  PARTICIPATING  ENERGY
SERVICES COMPANY.
  (E)  A  CUSTOMER REMITTING LESS THAN THE TOTAL AMOUNT DUE FOR ELECTRIC
AND/OR GAS SERVICES AND ON-BILL RECOVERY CHARGES  SHALL  HAVE  ANY  SUCH
PARTIAL  PAYMENT  FIRST  APPLIED  AS  PAYMENT  FOR  ELECTRIC  AND/OR GAS
SERVICES AND THE REMAINDER THEREOF  SHALL  BE  APPLIED  TO  THE  ON-BILL
RECOVERY CHARGE.
  (F)  BILLING AND REMITTANCE SERVICES SHALL BE AVAILABLE WITHOUT REGARD
TO WHETHER THE ENERGY DELIVERED BY THE UTILITY IS THE CUSTOMER'S PRIMARY
ENERGY SOURCE.
  (G) THE COMMISSION SHALL NOT APPROVE ANY APPLICATION FOR  THE  CONVER-
SION  TO  SUBMETERING OF ANY MASTER METER THAT IS SUBJECT TO ANY ON-BILL
PAYMENT CHARGES.
  4. FOR PURPOSES OF THIS SECTION THE FOLLOWING TERMS ARE DEFINED AS:
  (A) "QUALIFIED ENERGY EFFICIENCY SERVICES" MEANS THE  INSTALLATION  OR
UPGRADE  OF SYSTEMS, EQUIPMENT, OR TECHNOLOGIES BASED ON RECOMMENDATIONS
FROM A PARTICIPATING ENERGY SERVICES COMPANY OR  AN  ENERGY  AUDIT  THAT
WILL  INCREASE  THE ENERGY EFFICIENCY AND CONSERVATION OF A STRUCTURE OR
REDUCE THE COST OR CONSUMPTION OF ENERGY, INCLUDING BUT NOT LIMITED TO:
  (I) INSTALLATION, REPLACEMENT, OR MODIFICATION OF HEATING  OR  COOLING
SYSTEMS OR MAJOR COMPONENTS OF SUCH SYSTEMS;
  (II) INSTALLATION, REPLACEMENT, OR MODIFICATION OF WATER HEATERS;
  (III) INSTALLATION, REPLACEMENT, OR MODIFICATION OF THERMAL SOLAR HEAT
OR HOT WATER SYSTEMS;
  (IV)  INSTALLATION,  REPLACEMENT,  OR  MODIFICATION OF THERMOSTATS AND
OTHER HEATING OR COOLING SYSTEM CONTROL AND COMMUNICATIONS TECHNOLOGIES;

S. 5286--A                          4

  (V)  INSTALLATION,  REPLACEMENT,  OR  MODIFICATION   OF   TECHNOLOGIES
DESIGNED TO FACILITATE DEMAND RESPONSE OR MORE EFFICIENT USE OF ENERGY;
  (VI)  FUEL  SWITCHING  TO CONVERT AN ELECTRICALLY HEATED BUILDING TO A
MORE EFFICIENT HEATING SOURCE PROVIDED THAT SIGNIFICANT ENERGY COST-SAV-
INGS CAN BE DEMONSTRATED PURSUANT TO STANDARDS APPROVED BY  THE  COMMIS-
SION; OR
  (VII)  INSTALLATION  OF  ENERGY TECHNOLOGIES ELIGIBLE FOR NET METERING
PURSUANT TO SECTION SIXTY-SIX J OF THIS ARTICLE.
  (B) "PARTICIPATING ENERGY SERVICES COMPANY" MEANS AN ENTITY  WHICH  IS
REGISTERED  WITH THE COMMISSION AND APPROVED TO PROVIDE QUALIFIED ENERGY
EFFICIENCY SERVICES AS DEFINED IN THIS SUBDIVISION TO END-USE  CUSTOMERS
USING  THE  TRANSMISSION  AND DISTRIBUTION SYSTEM OF A COMBINED ELECTRIC
AND GAS UTILITY.
  S 2. Section 242 of the real property law is amended by adding  a  new
subdivision 5 to read as follows:
  5.  DISCLOSURE PRIOR TO THE SALE OF REAL PROPERTY TO WHICH THE ON-BILL
ENERGY SERVICES COMPANY  ENERGY  EFFICIENCY  PAYMENT  APPLIES.  (A)  ANY
PERSON,  FIRM, COMPANY, PARTNERSHIP OR CORPORATION OFFERING TO SELL REAL
PROPERTY WHICH IS SUBJECT TO THE ON-BILL ENERGY SERVICES COMPANY  ENERGY
EFFICIENCY PAYMENT PURSUANT TO SECTION SIXTY-SIX-N OF THE PUBLIC SERVICE
LAW  SHALL  PROVIDE  WRITTEN  NOTICE TO THE PROSPECTIVE PURCHASER OR THE
PROSPECTIVE PURCHASER'S AGENT, STATING AS  FOLLOWS:  "THIS  PROPERTY  IS
SUBJECT  TO  THE  ON-BILL  ENERGY  SERVICES  COMPANY  ENERGY  EFFICIENCY
PAYMENT." SUCH NOTICE SHALL STATE THE PAYMENT SCHEDULE AND A DESCRIPTION
OF THE ENERGY EFFICIENCY SERVICES INSTALLED AND SERVICES PROVIDED.  SUCH
NOTICE  SHALL  BE  PROVIDED  BY THE SELLER PRIOR TO ACCEPTING A PURCHASE
OFFER.
  (B) ANY PROSPECTIVE OR ACTUAL PURCHASER WHO HAS SUFFERED A LOSS DUE TO
A VIOLATION OF THIS  SUBDIVISION  IS  ENTITLED  TO  RECOVER  ANY  ACTUAL
DAMAGES  INCURRED  FROM THE PERSON OFFERING TO SELL OR SELLING SAID REAL
PROPERTY.
  S 3. This act shall take effect on the one hundred eightieth day after
it shall have become a law.

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