NY State Senate Bill 2017-S5990A

Senate Bill S5990A

Signed By Governor

2017-2018 Legislative Session

Relates to funding the sustainable energy loan program and disbursements therefrom

download bill text pdf

Archive: Last Bill Status - Signed by Governor

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Sep 13, 2017	signed chap.320
Sep 01, 2017	delivered to governor
Jun 19, 2017	returned to senate passed assembly ordered to third reading rules cal.400 substituted for a7394a
Jun 13, 2017	referred to ways and means delivered to assembly passed senate
Jun 06, 2017	advanced to third reading
Jun 05, 2017	2nd report cal. amended 5990a
May 24, 2017	1st report cal.1353
May 09, 2017	referred to energy and telecommunications

Votes

- Jun 13, 2017 - Floor Vote
  S5990A
  
  63
  
  Aye
  
  0
  
  Nay
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 13, 2017
      
      aye (63)
      
      Addabbo Jr.
      
      Akshar
      
      Alcantara
      
      Amedore
      
      Avella
      
      Bailey
      
      Benjamin
      
      Bonacic
      
      Boyle
      
      Breslin
      
      Brooks
      
      Carlucci
      
      Comrie
      
      Croci
      
      DeFrancisco
      
      Diaz
      
      Dilan
      
      Felder
      
      Flanagan
      
      Funke
      
      Gallivan
      
      Gianaris
      
      Golden
      
      Griffo
      
      Hamilton
      
      Hannon
      
      Helming
      
      Hoylman-Sigal
      
      Jacobs
      
      Kaminsky
      
      Kennedy
      
      Klein
      
      Krueger
      
      LaValle
      
      Lanza
      
      Larkin
      
      Latimer
      
      Little
      
      Marcellino
      
      Marchione
      
      Montgomery
      
      Murphy
      
      O'Mara
      
      Ortt
      
      Parker
      
      Peralta
      
      Persaud
      
      Phillips
      
      Ranzenhofer
      
      Ritchie
      
      Rivera
      
      Robach
      
      Sanders Jr.
      
      Savino
      
      Serino
      
      Serrano
      
      Seward
      
      Squadron
      
      Stavisky
      
      Stewart-Cousins
      
      Tedisco
      
      Valesky
      
      Young
  May 24, 2017 - Energy And Telecommunications Committee Vote
  S5990A
  
  11
  
  Aye
  
  0
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Energy And Telecommunications Committee Vote: May 24, 2017
      
      aye (11)
      
      Comrie
      
      Croci
      
      Dilan
      
      Griffo
      
      Kennedy
      
      Little
      
      O'Mara
      
      Ortt
      
      Parker
      
      Peralta
      
      Ritchie

Bill Amendments

Original

A (Active)

2017-S5990 - Details

See Assembly Version of this Bill:: A7394
Law Section:: General Municipal Law
Laws Affected:: Amd §§119-ff & 199-gg, Gen Muni L

2017-S5990 - Summary

Permits private funding of the sustainable energy loan program and authorizes the municipal corporation to impose requirements on disbursements therefrom.

2017-S5990 - Sponsor Memo

                                 BILL NUMBER:  S5990

 TITLE OF BILL :  An act to amend the general municipal law, in
relation to the municipal sustainable energy loan program

 PURPOSE :

To address challenges that have arisen in the municipal sustainable
energy loan program.

 SUMMARY OF PROVISIONS :

Section one amends subdivision 6 of section 119-ff of the general
municipal law to remove the requirement that the renewable energy
system be used primarily at such property.

Section two amends section 119-gg of the general municipal law to
allow the municipal sustainable energy loan program to be established
using monies available from any public or private source. This section
also provides that loans made to an owner of real property that is a
commercial entity, not-for-profit organization, or entity other than
an individual, the municipal corporation shall have the authority to
impose requirements on the maximum amount that may be borrowed.

Section three provides the effective date.

 JUSTIFICATION :

The municipal sustainable energy loan program, also known as property
assessed clean energy or "PACE," provides financing to property owners
for the installation of renewable energy systems and energy efficiency
measures, which is repaid as a charge on the municipal property tax
bill.

Since the first PACE- financed project was completed in 2015, three
barriers have been identified that have prevented the program from
reaching its full potential. First, the statute requires that
renewable energy must be "used primarily at such property," which has
prevented the use of PACE for remote net-metered and community solar
projects. Second, the statute requires the municipality to use federal
grants or federal credit support to fund the loan program.  However,
federal assistance is not always available, or often has restrictions
attached to it, which has prevented additional municipalities from
participating in the program. Third, the statute requires that the
amount of the loan shall not exceed ten percent of the appraised value
of the real property. While this is not a problem in areas of the
state with high property values, in many upstate communities, this ten
percent cap prevents valuable projects from moving forward. The bill
would create a more flexible standard to apply only for
commercially-owned property.

Removing these three barriers will enable the PACE program to expand,
financing more renewable energy and energy efficiency projects. It is
a valuable tool for helping the State reach its renewable energy
goals, and with these modifications, more properties will be able to
use it.

 LEGISLATIVE HISTORY :

New bill.

 FISCAL IMPLICATIONS :

None.

 EFFECTIVE DATE :
Immediate.

2017-S5990 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5990
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                                May 9, 2017
                                ___________
 
 Introduced  by  Sen.  GRIFFO -- read twice and ordered printed, and when
   printed to be committed to the Committee on  Energy  and  Telecommuni-
   cations
 
 AN  ACT to amend the general municipal law, in relation to the municipal
   sustainable energy loan program
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subdivision  6 of section 119-ff of the general municipal
 law, as added by chapter 497 of the laws of 2009, is amended to read  as
 follows:
   6. "Renewable energy system" means an energy generating system for the
 generation  of electric or thermal energy, [to be used primarily at such
 property,] by means of solar thermal, solar photovoltaic, wind, geother-
 mal, anaerobic digester gas-to-electricity systems, fuel cell  technolo-
 gies, or other renewable energy technology approved by the authority not
 including the combustion or pyrolysis of solid waste.
   §  2.  Subdivisions 1 and 6 of section 119-gg of the general municipal
 law, as added by chapter 497 of the laws of 2009, are amended to read as
 follows:
   1. The legislative body of any municipal  corporation  may,  by  local
 law,  establish  a  sustainable  energy loan program using federal grant
 assistance or federal credit support OR MONIES AVAILABLE FROM ANY PUBLIC
 OR PRIVATE SOURCE available for this purpose.
   6. [The] A. FOR LOANS MADE TO AN OWNER OF  REAL  PROPERTY  THAT  IS  A
 COMMERCIAL  ENTITY, NOT-FOR-PROFIT ORGANIZATION, OR ENTITY OTHER THAN AN
 INDIVIDUAL, THE MUNICIPAL CORPORATION SHALL HAVE THE AUTHORITY TO IMPOSE
 REQUIREMENTS ON THE MAXIMUM AMOUNT THAT MAY  BE  BORROWED  THROUGH  SUCH
 LOAN,  WHICH MAY CONSIDER FACTORS INCLUDING BUT NOT LIMITED TO THE PROP-
 ERTY VALUE, PROJECTED SAVINGS, PROJECT COST, AND  EXISTING  INDEBTEDNESS
 SECURED BY SUCH PROPERTY.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11056-01-7

 S. 5990                             2
 
   B.  THE  principal amount of each such loan, excluding interest, shall
 not exceed the lesser of ten percent  of  the  appraised  real  property
 value  or  the actual cost of installing the renewable energy system and
 energy efficiency improvements, including the costs of necessary  equip-
 ment,  materials,  and labor, the costs of each related energy audit and
 renewable energy system feasibility study, and the cost of  verification
 of such renewable energy system and energy efficiency improvements.
   § 3. This act shall take effect immediately.

2017-S5990A (ACTIVE) - Details

See Assembly Version of this Bill:: A7394
Law Section:: General Municipal Law
Laws Affected:: Amd §§119-ff & 199-gg, Gen Muni L

2017-S5990A (ACTIVE) - Summary

Permits private funding of the sustainable energy loan program and authorizes the municipal corporation to impose requirements on disbursements therefrom.

2017-S5990A (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S5990A

 TITLE OF BILL :  An act to amend the general municipal law, in
relation to the municipal sustainable energy loan program

 PURPOSE OR GENERAL IDEA OF BILL :

To address challenges that have arisen in the municipal sustainable
energy loan program.

 SUMMARY OF SPECIFIC PROVISIONS :

Section one amends subdivision 6 of section 119-ff of the general
municipal law to remove the requirement that the renewable energy
system be used primarily at such property when the owner of the real
property is a commercial entity.

Section two amends section 119-gg of the general municipal law to
allow the municipal sustainable energy loan program to be established
using monies available from the state or any state authority as
defined by section two of the public authorities law. This section
also provides that loans made to an owner of real property that is a
commercial entity, not-for-profit organization, or entity other than
an individual, the municipal corporation shall have the authority to
impose requirements on the maximum amount that maybe borrowed.

Section three provides the effective date.

 JUSTIFICATION :

The municipal sustainable energy loan program, also known as property
assessed clean energy or "PACE," provides financing to property owners
for the installation of renewable energy systems and energy efficiency
measures, which is repaid as a charge on the municipal property tax
bill.

Since the first PACE- financed project was completed in 2015, three
barriers have been identified that have prevented the program from
reaching its full potential. First, the statute requires that
renewable energy must be "used primarily at such property," which has
prevented the use of PACE for remote net-metered and community solar
projects. Second, the statute requires the municipality to use federal
grants or federal credit support to fund the loan program.  However,
federal assistance is not always available, or often has restrictions
attached to it, which has prevented additional municipalities from
participating in the program. Third, the statute requires that the
amount of the loan shall not exceed ten percent of the appraised value
of the real property. While this is not a problem in areas of the
state with high property values, in many upstate communities, this ten
percent cap prevents valuable projects from moving forward. The bill
would create a more flexible standard to apply only for
commercially-owned property.

Removing these three barriers will enable the PACE program to expand,
financing more renewable energy and energy efficiency projects. It is
a valuable tool for helping the State reach its renewable energy
goals, and with these modifications, more properties will be able to
use it.

 PRIOR LEGISLATIVE HISTORY :

This is a new bill.

 FISCAL IMPLICATION :

None.
 EFFECTIVE DATE :
Immediate.

2017-S5990A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5990--A
     Cal. No. 1353
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                                May 9, 2017
                                ___________
 
 Introduced  by  Sen.  GRIFFO -- read twice and ordered printed, and when
   printed to be committed to the Committee on  Energy  and  Telecommuni-
   cations  --  reported  favorably from said committee, ordered to first
   report, amended on first  report,  ordered  to  a  second  report  and
   ordered reprinted, retaining its place in the order of second report
 
 AN  ACT to amend the general municipal law, in relation to the municipal
   sustainable energy loan program
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subdivision  6 of section 119-ff of the general municipal
 law, as added by chapter 497 of the laws of 2009, is amended to read  as
 follows:
   6. "Renewable energy system" means an energy generating system for the
 generation  of  electric or thermal energy, to be used primarily at such
 property, EXCEPT WHEN THE OWNER OF REAL PROPERTY IS A COMMERCIAL ENTITY,
 by means of solar thermal, solar photovoltaic, wind, geothermal, anaero-
 bic digester gas-to-electricity  systems,  fuel  cell  technologies,  or
 other  renewable energy technology approved by the authority not includ-
 ing the combustion or pyrolysis of solid waste.
   § 2. Subdivisions 1 and 6 of section 119-gg of the  general  municipal
 law, as added by chapter 497 of the laws of 2009, are amended to read as
 follows:
   1.  The  legislative  body  of any municipal corporation may, by local
 law, establish a sustainable energy loan  program  using  federal  grant
 assistance  or  federal  credit  support OR MONIES FROM THE STATE OF NEW
 YORK OR ANY STATE AUTHORITY AS DEFINED BY  SECTION  TWO  OF  THE  PUBLIC
 AUTHORITIES LAW available for this purpose.
   6.  [The]  A.  FOR  LOANS  MADE TO AN OWNER OF REAL PROPERTY THAT IS A
 COMMERCIAL ENTITY, NOT-FOR-PROFIT ORGANIZATION, OR ENTITY OTHER THAN  AN
 INDIVIDUAL, THE MUNICIPAL CORPORATION SHALL HAVE THE AUTHORITY TO IMPOSE
 REQUIREMENTS  ON  THE  MAXIMUM  AMOUNT THAT MAY BE BORROWED THROUGH SUCH
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD11056-05-7

 S. 5990--A                          2
 
 LOAN, WHICH MAY CONSIDER FACTORS INCLUDING BUT NOT LIMITED TO THE  PROP-
 ERTY  VALUE,  PROJECTED SAVINGS, PROJECT COST, AND EXISTING INDEBTEDNESS
 SECURED BY SUCH PROPERTY.
   B.  FOR  LOANS MADE TO AN OWNER OF REAL PROPERTY WHO IS AN INDIVIDUAL,
 THE principal amount of each such loan, excluding  interest,  shall  not
 exceed the lesser of ten percent of the appraised real property value or
 the  actual  cost  of  installing the renewable energy system and energy
 efficiency improvements, including the  costs  of  necessary  equipment,
 materials, and labor, the costs of each related energy audit and renewa-
 ble  energy  system  feasibility  study, and the cost of verification of
 such renewable energy system and energy efficiency improvements.
   § 3. This act shall take effect immediately.

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