S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7631
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               May 25, 2023
                                ___________
 
 Introduced  by M. of A. STERN -- read once and referred to the Committee
   on Energy
 
 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. Section 119-ee of the general municipal law,  as  added  by
 chapter 497 of the laws of 2009, is amended to read as follows:
   §  119-ee. Legislative findings and declaration. The legislature finds
 and declares, AND AS REAFFIRMED IN THE NEW YORK STATE CLIMATE LEADERSHIP
 AND COMMUNITY PROTECTION ACT, that it is the  policy  of  the  state  to
 achieve  statewide  energy efficiency and renewable energy goals, reduce
 ECONOMY-WIDE greenhouse gas emissions and mitigate the effect of  global
 climate  change, and advance a clean energy economy; and that to achieve
 such policy and goals the state must promote the deployment of renewable
 energy systems [and], energy efficiency measures, WATER EFFICIENCY MEAS-
 URES, AND RESILIENCY IMPROVEMENTS throughout the state; THAT MEASURES TO
 ACHIEVE REDUCTIONS IN ENERGY USE, REDUCE EMISSIONS, AND  SCALE  DISTRIB-
 UTED SOLAR ENERGY AND BENEFICIAL ELECTRICAL EQUIPMENT IN RESIDENTIAL AND
 COMMERCIAL  BUILDINGS,  SPECIFICALLY  HAVE  BEEN  IDENTIFIED AS CRITICAL
 AREAS FOR INVESTMENT TO ACHIEVE THESE  GOALS;  and  that  municipalities
 would  fulfill  an  important public purpose by [providing] FACILITATING
 MARKET-BASED FINANCING loans to property owners for the installation  of
 renewable  energy systems [and], energy efficiency measures, WATER EFFI-
 CIENCY MEASURES, AND RESILIENCY IMPROVEMENTS.
   § 2. Section 119-ff of the general municipal law, as amended by  chap-
 ter 184 of the laws of 2020, is amended to read as follows:
   § 119-ff. Definitions. For purposes of this article:
   1.  "Authority"  means the New York state energy research and develop-
 ment authority, as  defined  by  subdivision  two  of  section  eighteen
 hundred fifty-one of the public authorities law, or its successor.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10455-03-3
              

 A. 7631                             2
 
   2.  "Credit support" means and includes direct loans, letters of cred-
 it, loan guarantees, and insurance products;  and  the  purchase  of  or
 commitment  to  purchase,  or  the  sale  of or commitment to sell, debt
 instruments, including subordinated securities.
   3.  "Energy audit" means a formal evaluation of the energy consumption
 OR CARBON INTENSITY of a permanent building or structural improvement to
 real property, conducted by a contractor certified by the authority,  or
 certified  by a certifying entity approved by the authority for purposes
 of this article, for the purpose of identifying appropriate energy effi-
 ciency improvements that could be  made  to  or  incorporated  into  the
 construction  of  the  property  AND DETERMINING THE USEFUL LIFE OF SUCH
 IMPROVEMENTS. AN ENERGY AUDIT MAY DOCUMENT  ANCILLARY  IMPROVEMENTS  AND
 RELATED  COSTS  THAT ARE REQUIRED FOR THE ENERGY EFFICIENCY IMPROVEMENTS
 TO PROCEED AND FURTHER SHALL DOCUMENT EXPECTED ENERGY SAVINGS, SECONDARY
 OR SOCIETAL BENEFITS SUCH AS REDUCTIONS IN GREENHOUSE GAS EMISSIONS, AND
 ANY OTHER ENVIRONMENTAL, ECONOMIC AND PUBLIC HEALTH CO-BENEFITS, INCLUD-
 ING THOSE ENUMERATED IN THE SCOPING PLANS  AND  RELATED  VALUES  CREATED
 PURSUANT  TO ARTICLE SEVENTY-FIVE OF THE ENVIRONMENTAL CONSERVATION LAW.
 A municipal corporation may, by local law, provide for the certification
 of such QUALIFYING contractors based upon criteria at least as stringent
 as the [state-wide] STATEWIDE criteria for certification adopted by  the
 authority for purposes of this article.
   4. "Energy efficiency improvement" means any improvement to real prop-
 erty, whether as a component of the new construction of a building or as
 the  renovation  or  retrofitting of an existing building DESIGNED to A.
 reduce energy consumption[, such as window and door replacement,  light-
 ing,  caulking,  weatherstripping,  air sealing, insulation, and heating
 and cooling system upgrades, and similar improvements, determined to  be
 cost-effective  pursuant  to  criteria  established by the authority] OR
 GREENHOUSE GAS EMISSIONS, B. EXCEED REQUIRED ENERGY CODE REQUIREMENTS AT
 THE TIME OF PROJECT PERMITTING, OR C. MEET ANOTHER BUILDING DESIGN STAN-
 DARD FOR ENERGY OR CARBON  PERFORMANCE  AS  DEEMED  APPROPRIATE  BY  THE
 AUTHORITY.  However,  "energy  efficiency improvement" shall not include
 [lighting measures or] household appliances  that  are  not  permanently
 fixed to real property.
   5. "Municipal corporation" means a county, town, city or village.
   6. "QUALIFYING CONTRACTOR" MEANS A CONTRACTOR CERTIFIED BY THE AUTHOR-
 ITY,  OR  CERTIFIED BY A CERTIFYING ENTITY APPROVED BY THE AUTHORITY FOR
 PURPOSES OF THIS ARTICLE, AND RETAINED BY THE OWNER OF REAL PROPERTY  OR
 THEIR DESIGNEE.
   7.  "Real  property" means any property, an interest in which is or is
 eligible to be  recorded  or  registered  on  municipal  land  ownership
 records by the possessor of such interest.
   [7.]  8.  "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,
 anaerobic  digester  gas-to-electricity systems, fuel cell technologies,
 or other renewable energy  technology  approved  by  the  authority  not
 including the combustion or pyrolysis of solid waste.
   [8.]  9.  "Renewable  energy system feasibility study" means a written
 study, conducted by a contractor certified by the authority,  or  certi-
 fied  by  a  certifying entity approved by the authority for purposes of
 this article, for the purpose of determining the feasibility of install-
 ing a renewable energy system AND THE USEFUL  LIFE  OF  SUCH  SYSTEM.  A
 RENEWABLE   ENERGY  SYSTEM  FEASIBILITY  STUDY  MAY  DOCUMENT  ANCILLARY
 A. 7631                             3
 
 IMPROVEMENTS AND RELATED COSTS THAT  ARE  REQUIRED  FOR  THE  RENEWABLES
 ENERGY  SYSTEM  TO  PROCEED  AND  FURTHER SHALL DOCUMENT EXPECTED ENERGY
 SAVINGS, SECONDARY OR SOCIETAL BENEFITS SUCH AS REDUCTIONS IN GREENHOUSE
 GAS  EMISSIONS,  AND ANY OTHER ENVIRONMENTAL, ECONOMIC AND PUBLIC HEALTH
 CO-BENEFITS, INCLUDING THOSE ENUMERATED IN THE SCOPING PLANS AND RELATED
 VALUES CREATED PURSUANT TO ARTICLE  SEVENTY-FIVE  OF  THE  ENVIRONMENTAL
 CONSERVATION LAW. A municipal corporation may, by local law, provide for
 the  certification of such QUALIFYING contractors based upon criteria at
 least as stringent as the [state-wide] STATEWIDE  criteria  for  certif-
 ication adopted by the authority for purposes of this article.
   10.  "RESILIENCY  IMPROVEMENT"  MEANS  IMPROVEMENTS  TO REAL PROPERTY,
 WHETHER AS A COMPONENT OF THE NEW CONSTRUCTION OF A BUILDING OR  AS  THE
 RENOVATION OR RETROFITTING OF AN EXISTING BUILDING, DESIGNED TO INCREASE
 THE  RESILIENCE  OF  A QUALIFYING PROPERTY, INCLUDING AIR QUALITY, FLOOD
 MITIGATION, STORMWATER MANAGEMENT,  BENEFICIAL  ELECTRIFICATION,  ENERGY
 STORAGE  AND  MICROGRIDS,  ALTERNATIVE  VEHICLE CHARGING INFRASTRUCTURE,
 FIRE OR WIND RESISTANCE OR INUNDATION ADAPTATION.
   11. "RESILIENCY FEASIBILITY STUDY" MEANS A WRITTEN STUDY CONDUCTED  BY
 A  CONTRACTOR  CERTIFIED  BY THE AUTHORITY, OR CERTIFIED BY A CERTIFYING
 ENTITY APPROVED BY THE AUTHORITY FOR PURPOSES OF THIS ARTICLE,  FOR  THE
 PURPOSE  OF  DETERMINING  THE  FEASIBILITY  OF  INSTALLING  A RESILIENCY
 IMPROVEMENT AND THE USEFUL LIFE OF SUCH IMPROVEMENT. A RESILIENCY FEASI-
 BILITY STUDY MAY DOCUMENT ANCILLARY IMPROVEMENTS AND RELATED COSTS  THAT
 ARE  REQUIRED  FOR  THE  RENEWABLES ENERGY SYSTEM TO PROCEED AND FURTHER
 SHALL DOCUMENT EXPECTED COST SAVINGS  FOR  THE  SUBJECT  REAL  PROPERTY,
 SECONDARY  OR  SOCIETAL  BENEFITS SUCH AS ENHANCED COMMUNITY RESILIENCY,
 AND ANY OTHER ENVIRONMENTAL, ECONOMIC  AND  PUBLIC  HEALTH  CO-BENEFITS,
 INCLUDING  THOSE  ENUMERATED  IN  THE  SCOPING  PLANS AND RELATED VALUES
 CREATED PURSUANT TO ARTICLE SEVENTY-FIVE OF THE ENVIRONMENTAL  CONSERVA-
 TION  LAW.  A  MUNICIPAL  CORPORATION MAY, BY LOCAL LAW, PROVIDE FOR THE
 CERTIFICATION OF SUCH QUALIFYING  CONTRACTORS  BASED  UPON  CRITERIA  AT
 LEAST  AS  STRINGENT AS THE STATEWIDE CRITERIA FOR CERTIFICATION ADOPTED
 BY THE AUTHORITY FOR PURPOSES OF THIS ARTICLE.
   12. "WATER EFFICIENCY IMPROVEMENT" MEANS ANY IMPROVEMENT TO REAL PROP-
 ERTY, WHETHER AS A COMPONENT OF THE NEW CONSTRUCTION OF A BUILDING OR AS
 THE RENOVATION AND RETROFITTING OF AN EXISTING BUILDING, TO REDUCE WATER
 CONSUMPTION AND PROMOTE WATER CONSERVATION AND STORAGE, SUCH AS  LO-FLOW
 DEVICES,  RESTRICTORS,  WATER RECAPTURE AND RECYCLING SYSTEMS, AND RAIN-
 FALL CAPTURE AND STORAGE SYSTEMS.
   13. "WATER EFFICIENCY STUDY" MEANS A WRITTEN  STUDY,  CONDUCTED  BY  A
 CONTRACTOR  CERTIFIED  BY  THE  AUTHORITY,  OR CERTIFIED BY A CERTIFYING
 ENTITY APPROVED BY THE AUTHORITY FOR PURPOSES OF THIS ARTICLE,  FOR  THE
 PURPOSE  OF  DETERMINING  THE FEASIBILITY OF INSTALLING WATER EFFICIENCY
 IMPROVEMENTS AND THE USEFUL LIFE OF SUCH IMPROVEMENTS. A WATER EFFICIEN-
 CY STUDY MAY DOCUMENT ANCILLARY IMPROVEMENTS AND RELATED COSTS THAT  ARE
 REQUIRED  FOR  THE RENEWABLES ENERGY SYSTEM TO PROCEED AND FURTHER SHALL
 DOCUMENT EXPECTED WATER SAVINGS, SECONDARY OR SOCIETAL BENEFITS SUCH  AS
 RECAPTURE,  RECYCLING, AND STORAGE, AND ANY OTHER ENVIRONMENTAL, ECONOM-
 IC, AND PUBLIC HEALTH CO-BENEFITS, INCLUDING  THOSE  ENUMERATED  IN  THE
 SCOPING  PLANS  AND  RELATED VALUES CREATED PURSUANT TO ARTICLE SEVENTY-
 FIVE OF THE ENVIRONMENTAL CONSERVATION LAW. A MUNICIPAL CORPORATION MAY,
 BY LOCAL LAW, PROVIDE FOR THE CERTIFICATION OF SUCH QUALIFYING  CONTRAC-
 TORS BASED UPON CRITERIA AT LEAST AS STRINGENT AS THE STATEWIDE CRITERIA
 FOR CERTIFICATION ADOPTED BY THE AUTHORITY FOR PURPOSES OF THIS ARTICLE.
 A. 7631                             4
 
   §  3. Section 119-gg of the general municipal law, as added by chapter
 497 of the laws of 2009, subdivisions 1 and 6 as amended by chapter  320
 of the laws of 2017, is amended to read as follows:
   §  119-gg. Sustainable energy loan program. 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.
   2. Such program may [make] FACILITATE loans  to  the  owners  of  real
 property located within the municipal corporation to finance the instal-
 lation  of  renewable  energy  systems [and], energy efficiency improve-
 ments, WATER EFFICIENCY IMPROVEMENTS, RESILIENCY  IMPROVEMENTS,  related
 energy  audits  and  renewable  energy system FEASIBILITY STUDIES, WATER
 EFFICIENCY STUDIES, AND RESILIENCY IMPROVEMENT feasibility studies,  and
 the  verification  of the installation of such systems and improvements.
 No municipal corporation shall make such a loan to an owner of  property
 that  has received a loan from another municipal corporation pursuant to
 this article.
   3. Each such  local  law  establishing  the  sustainable  energy  loan
 program  shall  provide  for  the criteria for making such loans and the
 terms and conditions for repayment of such loans. [The sustainable ener-
 gy loan program shall use such lists of cost effective energy efficiency
 improvements for different building types as are approved by the author-
 ity.]
   4. The municipal corporation shall verify and report on the  installa-
 tion and performance of renewable energy systems [and], energy efficien-
 cy  improvements, WATER EFFICIENCY IMPROVEMENTS, AND RESILIENCY IMPROVE-
 MENTS financed by the loan program  in  such  form  and  manner  as  the
 authority may establish.
   5.  [Every]  NOTWITHSTANDING  SUBDIVISION THREE OF THIS SECTION, EVERY
 loan made under the sustainable energy loan program shall be repaid over
 a term not to exceed the weighted average of the  useful  life  of  such
 systems  and  improvements  as determined by the [municipal corporation.
 The municipal  corporation  shall  set]  QUALIFYING  CONTRACTOR  IN  THE
 RELATED  ENERGY  AUDIT, RENEWABLE ENERGY SYSTEM FEASIBILITY STUDY, WATER
 EFFICIENCY STUDY, OR RESILIENCY IMPROVEMENT FEASIBILITY STUDY AND  THERE
 SHALL  BE  a  fixed  rate of interest for the repayment of the principal
 amount of each loan at the time the loan is made.
   6. NOTWITHSTANDING SUBDIVISION THREE OF THIS SECTION:
   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 require-
 ments on the maximum amount that may  be  borrowed  through  such  loan,
 which  may  consider  factors  including but not limited to the property
 value,  projected  savings,  project  cost,  and  existing  indebtedness
 secured  by such property] AT THE TIME OF EXECUTION OF A LOAN, THE PRIN-
 CIPAL AMOUNT OF SUCH LOAN, EXCLUDING  INTEREST,  SHALL  NOT  EXCEED  THE
 LESSER  OF  THIRTY-FIVE PERCENT OF THE APPRAISED REAL PROPERTY VALUE, AS
 STABILIZED OR AS COMPLETE, OR THE ACTUAL COST  OF  INSTALLING  RENEWABLE
 ENERGY  SYSTEMS,  ENERGY EFFICIENCY IMPROVEMENTS, WATER EFFICIENCY MEAS-
 URES AND RESILIENCY  IMPROVEMENTS,  INCLUDING  THE  COSTS  OF  NECESSARY
 EQUIPMENT,  MATERIALS,  AND  LABOR,  FINANCING  COSTS, THE COSTS OF EACH
 RELATED ENERGY AUDIT  AND  RENEWABLE  ENERGY  SYSTEM,  WATER  EFFICIENCY
 STUDY,  AND  RESILIENCY  IMPROVEMENT  FEASIBILITY STUDY, AND THE COST OF
 A. 7631                             5
 
 VERIFICATION OF SUCH RENEWABLE  ENERGY  SYSTEM  AND  ENERGY  EFFICIENCY,
 WATER EFFICIENCY, AND RESILIENCY IMPROVEMENTS.
   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,  WATER  EFFICIENCY  MEASURES  AND   RESILIENCY
 IMPROVEMENTS, including the costs of necessary equipment, materials, and
 labor,  FINANCING  COSTS,  the costs of each related energy audit [and],
 renewable energy system feasibility study, WATER EFFICIENCY  STUDY,  AND
 RESILIENCY  IMPROVEMENT  FEASIBILITY STUDY, and the cost of verification
 of such renewable energy system and energy efficiency,  WATER  EFFICIEN-
 CY, AND RESILIENCY improvements.
   C.  AT  THE  TIME OF EXECUTION OF A LOAN, THE PRINCIPAL AMOUNT OF EACH
 SUCH LOAN, EXCLUDING INTEREST, PLUS ANY OTHER DEBT SECURED BY  THE  REAL
 PROPERTY, SHALL NOT EXCEED NINETY PERCENT OF THE APPRAISED REAL PROPERTY
 VALUE, AS STABILIZED OR AS COMPLETE.
   D. THE OWNER OF A COMMERCIAL REAL PROPERTY SHALL PROVIDE THE MUNICIPAL
 CORPORATION WITH THE WRITTEN CONSENT, EXECUTED BY EACH HOLDER OF A MORT-
 GAGE  OR DEED OF TRUST ON THE PROPERTY SECURING INDEBTEDNESS ON THE REAL
 PROPERTY AT THE TIME OF EXECUTION OF A LOAN, INDICATING CONSENT  TO  THE
 LIEN  PLACED  ON THE REAL PROPERTY PURSUANT TO SUBDIVISION EIGHT OF THIS
 SECTION AND THAT IT DOES NOT CONSTITUTE AN EVENT OF  DEFAULT  UNDER  THE
 MORTGAGE OR DEED OF TRUST.
   7.  No  such  loan  shall  be  made for energy efficiency improvements
 unless determined to be appropriate through an energy  audit,  [and]  no
 such  loan shall be made for a renewable energy system unless determined
 to be feasible through a renewable energy system feasibility  study,  NO
 SUCH  LOAN SHALL BE MADE FOR WATER EFFICIENCY MEASURES UNLESS DETERMINED
 TO BE APPROPRIATE THROUGH A WATER EFFICIENCY STUDY, AND NO LOAN SHALL BE
 MADE FOR  RESILIENCY  IMPROVEMENTS  UNLESS  DETERMINED  TO  BE  FEASIBLE
 THROUGH  A RESILIENCY FEASIBILITY STUDY. UPON RECEIPT OF A CERTIFICATION
 FROM A QUALIFYING CONTRACTOR  CONDUCTING  THE  ENERGY  AUDIT,  RENEWABLE
 ENERGY  FEASIBILITY  STUDY, WATER EFFICIENCY STUDY, OR RESILIENCY FEASI-
 BILITY STUDY THAT THE PROPOSED IMPROVEMENTS ARE APPROPRIATE AND  SATISFY
 THE  CRITERIA  SET FORTH BY THE AUTHORITY, A MUNICIPAL CORPORATION SHALL
 ALLOW THE FINANCING OF THE FULL COST OF IMPROVEMENTS AND RELATED FINANC-
 ING AND ANCILLARY COSTS THAT  ARE  THE  SUBJECT  OF  THE  CERTIFICATION,
 SUBJECT ONLY TO THE LIMITS SET FORTH IN SUBDIVISION SIX OF THIS SECTION.
   8.  The  loan  made  under  the  sustainable energy loan program shall
 constitute a lien upon the real property benefitted by such  loan  PRIOR
 TO  ALL LIENS OTHER THAN LIENS FOR REAL PROPERTY TAXES, MUNICIPAL CHARG-
 ES, OR ANY OTHER MUNICIPAL LIENS.
   9. The municipal corporation may  require  the  loan  made  under  the
 sustainable  energy  loan  program  to  be  repaid by the property owner
 through a charge on the real property  benefitted  by  such  loan.  Such
 charge  shall  be on the real property and shall be levied and collected
 at the same time and in the same manner  as  municipal  taxes,  provided
 that  such  charge  shall  be  separately  listed  on  the tax bill, and
 provided further that in the event such charge should not be paid  in  a
 timely manner, no other municipal corporation shall be required to cred-
 it or otherwise guarantee the amount of such unpaid charge to the munic-
 ipal   corporation   which  authorized  the  loan,  notwithstanding  any
 provision of law to the contrary. TO THE EXTENT ANY SUCH CHARGE  IS  NOT
 PAID  WHEN  DUE,  THE DELINQUENT CHARGE MAY BE ENFORCED OR FORECLOSED TO
 THE EXTENT OF ANY UNPAID INSTALLMENT PAYMENTS. IN ANY EVENT OF  ENFORCE-
 A. 7631                             6
 
 MENT,  INCLUDING FORECLOSURE, THE BALANCE OF THE LIEN SHALL NOT ACCELER-
 ATE AND SHALL SURVIVE JUDGMENT. THE PROCEEDS RECEIVED IN  AN  ACTION  TO
 ENFORCE  AN UNPAID OR DELINQUENT CHARGE SHALL BE PAID FIRST TO OUTSTAND-
 ING REAL PROPERTY TAXES, MUNICIPAL CHARGES, OR OTHER MUNICIPAL LIENS.
   §  4.  The  New  York  state energy research and development authority
 shall publish revised guidelines for energy efficiency improvements  and
 renewable  energy systems in accordance with this act within 120 days of
 the effective date of this act, and shall publish guidelines  for  water
 efficiency  and resiliency improvements within 360 days of the effective
 date of this act. Such revised guidelines shall be effective as soon  as
 adopted, however each sustainable energy loan program may process appli-
 cations  received prior to the adoption date pursuant to existing guide-
 lines published by the authority. Notwithstanding  the  foregoing,  each
 sustainable  energy  loan  program  may  apply the revised guidelines to
 energy efficiency improvements, renewable energy  systems,  water  effi-
 ciency  improvements,  and  resiliency improvements placed in service on
 the subject real  property  within  three  years  of  the  date  of  the
 execution  of  a  loan  made  under the sustainable energy loan program.
 Prior to publishing guidelines, the authority shall conduct public meet-
 ings to provide opportunities for public comment.
   § 5. This act shall take effect immediately.