A. 5404--C 2
§ 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.
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
of a permanent building or structural improvement to real property,
conducted by a QUALIFYING 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
efficiency improvements that could be made to or incorporated into the
construction of the property. [A municipal corporation may, by local
law, provide for the certification of such contractors based upon crite-
ria at least as stringent as the state-wide 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 to reduce energy
consumption[, such as window and door replacement, lighting, caulking,
weatherstripping, air sealing, insulation, and heating and cooling
system upgrades, and similar improvements,] OR GREENHOUSE GAS EMISSIONS
AS determined [to be cost-effective pursuant to criteria established] by
the authority, WHICH SHALL AT A MINIMUM INCLUDE CONSIDERATIONS OF COST-
EFFECTIVENESS. However, "energy efficiency improvement" shall not
include lighting measures or household appliances that are not perma-
nently fixed to real property.
5. "FEASIBILITY STUDY" MEANS A WRITTEN STUDY OF ENERGY NEEDS, WATER
USAGE OR NEEDS, OR RESILIENCY NEEDS, CONDUCTED BY A QUALIFYING CONTRAC-
TOR FOR THE PURPOSE OF IDENTIFYING APPROPRIATE AND FEASIBLE PERMANENT
BUILDING OR STRUCTURAL IMPROVEMENT TO REAL PROPERTY OF RENEWABLE ENERGY
SYSTEMS, QUALIFYING WATER IMPROVEMENTS, QUALIFYING RESILIENCY IMPROVE-
MENTS OR, IN RELATION TO REAL PROPERTY LOCATED WITHIN A CITY WITH A
POPULATION OF ONE MILLION OR MORE AN EVALUATION OF CARBON OR GREENHOUSE
GAS REDUCTION NEEDS FOR LOW CARBON INTENSITY BUILDING COMPONENT IMPROVE-
MENTS, THAT COULD BE MADE TO OR INCORPORATED INTO THE CONSTRUCTION OF
THE PROPERTY.
6. "LOW CARBON INTENSITY BUILDING COMPONENT IMPROVEMENT" MEANS ANY
PERMANENTLY AFFIXED IMPROVEMENT TO REAL PROPERTY, WHETHER AS A COMPONENT
OF THE NEW CONSTRUCTION OF A BUILDING OR AS THE RENOVATION OR RETROFIT-
TING OF AN EXISTING BUILDING, TO REDUCE THE CARBON OR OTHER GREENHOUSE
GAS EMISSIONS OF THOSE COMPONENTS OR THE IMPROVED PROPERTY, AS DETER-
MINED BY THE AUTHORITY, WHICH IN ADDITION TO ANY EXPECTED ENERGY
SAVINGS, REDUCTIONS IN GREENHOUSE GAS EMISSIONS, AND ANY OTHER ENVIRON-
MENTAL, ECONOMIC, AND PUBLIC HEALTH BENEFITS, SHALL AT A MINIMUM INCLUDE
CONSIDERATIONS OF COST-EFFECTIVENESS. HOWEVER, "LOW CARBON INTENSITY
BUILDING COMPONENTS" SHALL NOT INCLUDE MEASURES THAT ARE NOT PERMANENTLY
FIXED TO REAL PROPERTY.
7. "Municipal corporation" means a county, town, city or village.
8. "QUALIFYING WATER 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, PROMOTE WATER CONSERVATION AND STORAGE, MANAGE STORMWATER,
RESIST FLOODING, AND MITIGATE CONTAMINATION IN POTABLE WATER SYSTEMS, AS
A. 5404--C 3
DETERMINED BY THE AUTHORITY, WHICH IN ADDITION TO ANY EXPECTED ENERGY
SAVINGS, REDUCTIONS IN GREENHOUSE GAS EMISSIONS, AND ANY OTHER ENVIRON-
MENTAL, ECONOMIC, AND PUBLIC HEALTH BENEFITS, SHALL AT A MINIMUM INCLUDE
CONSIDERATIONS OF COST-EFFECTIVENESS. HOWEVER, "QUALIFYING WATER
IMPROVEMENTS" SHALL NOT INCLUDE MEASURES THAT ARE NOT PERMANENTLY FIXED
TO REAL PROPERTY.
[6.] 9. "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.] 10. "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 OR THE INSTALLATION
OF ENERGY STORAGE, MICROGRIDS, OR VEHICLE CHARGING INFRASTRUCTURE.
[8. "Renewable energy system 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 arti-
cle, for the purpose of determining the feasibility of installing a
renewable energy system. A municipal corporation may, by local law,
provide for the certification of such contractors based upon criteria at
least as stringent as the state-wide criteria for certification adopted
by the authority for purposes of this article.]
11. "GREENHOUSE GAS EMISSIONS" MEANS ALL EMISSIONS, ATTRIBUTABLE TO
ANY PERMANENT BUILDING OR STRUCTURAL IMPROVEMENT TO REAL PROPERTY, OF
"GREENHOUSE GASES" AS DEFINED IN SUBDIVISION SEVEN OF SECTION 75-0101 OF
THE ENVIRONMENTAL CONSERVATION LAW.
12. "QUALIFYING CONTRACTOR" MEANS A CONTRACTOR THAT IS: (A) CERTIFIED
BY THE AUTHORITY, OR CERTIFIED BY A CERTIFYING ENTITY APPROVED BY THE
AUTHORITY FOR PURPOSES OF THIS ARTICLE, OR (B) CERTIFIED BY A MUNICI-
PALITY PURSUANT TO LOCAL LAW THAT INCORPORATES CRITERIA AT LEAST AS
STRINGENT AS THE STATEWIDE CRITERIA FOR CERTIFICATION ADOPTED BY THE
AUTHORITY, TO CONDUCT AN ENERGY AUDIT AND A FEASIBILITY STUDY.
13. "QUALIFYING RESILIENCY IMPROVEMENTS" MEANS IMPROVEMENTS TO REAL
PROPERTY, A COMPONENT OF THE NEW CONSTRUCTION OF A BUILDING, OR THE
RENOVATION OR RETROFITTING OF AN EXISTING BUILDING, THAT IS DESIGNED TO
ENHANCE THE ABILITY OF THE BUILDING TO WITHSTAND OR RECOVER QUICKLY FROM
DISRUPTION FROM THE CURRENT AND FUTURE HAZARDS OF EXTREME WEATHER
EVENTS, INCLUDING BUT NOT LIMITED TO FLOODS, HIGH WINDS, TORNADOS,
EXTREME TEMPERATURE, HEAVY RAINFALL, SEA LEVEL RISE AND WILDFIRES, AS
DETERMINED BY THE AUTHORITY, WHICH IN ADDITION TO ANY EXPECTED ENERGY
SAVINGS, REDUCTIONS IN GREENHOUSE GAS EMISSIONS, AND ANY OTHER ENVIRON-
MENTAL, ECONOMIC, AND PUBLIC HEALTH BENEFITS, SHALL AT A MINIMUM INCLUDE
CONSIDERATIONS OF COST-EFFECTIVENESS. HOWEVER, "QUALIFYING RESILIENCY
IMPROVEMENTS" SHALL NOT INCLUDE MEASURES THAT ARE NOT PERMANENTLY FIXED
TO REAL PROPERTY.
§ 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
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defined by section two of the public authorities law available for this
purpose.
2. Such program may make loans to the owners of real property located
within the municipal corporation to finance the installation of renewa-
ble energy systems [and], energy efficiency improvements, QUALIFYING
WATER IMPROVEMENTS, AND QUALIFYING RESILIENCY IMPROVEMENTS, AND IF SUCH
REAL PROPERTY IS LOCATED WITHIN A CITY WITH A POPULATION OF ONE MILLION
OR MORE, LOW CARBON INTENSITY BUILDING COMPONENTS, related energy audits
and [renewable energy system] 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.
A. The sustainable energy loan program shall use such lists of [cost
effective] energy efficiency improvements for different building types
as are approved by the authority.
B. THE QUALIFYING WATER IMPROVEMENTS, QUALIFYING RESILIENCY IMPROVE-
MENTS, AND IF SUCH REAL PROPERTY IS LOCATED WITHIN A CITY WITH A POPU-
LATION OF ONE MILLION OR MORE, LOW CARBON INTENSITY BUILDING COMPONENTS,
SHALL USE SUCH LISTS FOR COMMERCIAL BUILDING TYPES AS ARE APPROVED BY
THE AUTHORITY.
C. EACH SUCH LOCAL LAW MAY PROVIDE CRITERIA FOR QUALIFYING CONTRACTORS
THAT MAY CONDUCT ENERGY AUDITS OR FEASIBILITY STUDIES IN THE MUNICI-
PALITY, PROVIDED THAT SUCH CRITERIA ARE AT LEAST AS STRINGENT AS THE
CRITERIA ESTABLISHED BY THE AUTHORITY.
4. The municipal corporation shall verify and report on the installa-
tion and performance of renewable energy systems [and], energy efficien-
cy improvements, QUALIFYING WATER IMPROVEMENTS, AND QUALIFYING RESILIEN-
CY IMPROVEMENTS, AND, IF APPLICABLE LOW CARBON INTENSITY BUILDING
COMPONENT IMPROVEMENTS, financed by the loan program in such form and
manner as the authority may establish.
5. 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 corpo-
ration. The municipal corporation shall [set] APPROVE a fixed rate of
interest for the repayment of the principal amount of each loan at the
time the loan is made.
6. 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.
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.
A. 5404--C 5
C. FOR LOANS TO AN OWNER OF REAL PROPERTY THAT IS A COMMERCIAL ENTITY,
THE PRINCIPAL AMOUNT OF SUCH LOAN, EXCLUDING INTEREST, SHALL, IN NO
EVENT, EXCEED THIRTY-FIVE PERCENT OF THE APPRAISED REAL PROPERTY VALUE
INCLUSIVE OF THE FINANCED IMPROVEMENTS AS ESTABLISHED BY AN APPRAISAL
ACCEPTED BY THE MUNICIPAL CORPORATION; PROVIDED, HOWEVER, THAT THE TOTAL
DEBT ON ANY SUCH REAL PROPERTY AFTER THE EXECUTION OF A LOAN PURSUANT TO
THIS ARTICLE SHALL NOT EXCEED NINETY PERCENT OF THE APPRAISED REAL PROP-
ERTY, INCLUSIVE OF THE FINANCED IMPROVEMENTS AS ESTABLISHED BY AN
APPRAISAL ACCEPTED BY THE MUNICIPAL CORPORATION.
D. FOR ALL LOANS, THE OWNER OF THE REAL PROPERTY SHALL PROVIDE THE
MUNICIPAL CORPORATION, PRIOR TO APPROVAL OF SUCH LOAN, WITH THE WRITTEN
CONSENT OF EACH HOLDER OF A MORTGAGE, LIEN, OR DEED OF TRUST ON SUCH
REAL PROPERTY, INCLUDING CONSENT TO THE CHARGE AND LIEN PLACED ON THE
REAL PROPERTY PURSUANT TO THIS ARTICLE, THE PRIORITY OF SUCH LIEN, AND
IF APPLICABLE, A STATEMENT THAT THE CHARGE AND LIEN 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, QUALIFYING WATER
IMPROVEMENTS, OR QUALIFYING RESILIENCY IMPROVEMENTS OR, IF SUCH REAL
PROPERTY IS LOCATED WITHIN A CITY WITH A POPULATION OF ONE MILLION OR
MORE, LOW CARBON INTENSITY BUILDING COMPONENT IMPROVEMENTS, unless
determined to be feasible through a [renewable energy system] feasibil-
ity study; PROVIDED, HOWEVER, THAT NO SUCH LOAN SHALL BE MADE FOR A
QUALIFYING LOW-CARBON INTENSITY IMPROVEMENT WITHOUT AN APPROPRIATE ENGI-
NEERING STUDY IN ACCORDANCE WITH CRITERIA DEVELOPED BY THE AUTHORITY.
8. AN ENERGY AUDIT SHALL COMPLY WITH ALL REQUIREMENTS ESTABLISHED BY
THE AUTHORITY AND SHALL DOCUMENT: (A) IMPROVEMENTS AND RELATED COSTS
THAT ARE REQUIRED FOR THE ENERGY EFFICIENCY IMPROVEMENTS TO PROCEED; AND
(B) EXPECTED ENERGY SAVINGS, ANY EXPECTED REDUCTIONS IN GREENHOUSE GAS
EMISSIONS, AND ANY OTHER ENVIRONMENTAL, ECONOMIC AND PUBLIC HEALTH BENE-
FITS EXPECTED FROM THE INSTALLATION OF THE IMPROVEMENTS, INCLUDING THOSE
ENUMERATED IN THE SCOPING PLANS AND RELATED VALUES CREATED PURSUANT TO
ARTICLE SEVENTY-FIVE OF THE ENVIRONMENTAL CONSERVATION LAW; AND (C) ANY
OTHER CRITERIA THE AUTHORITY MAY SPECIFY.
9. A FEASIBILITY STUDY SHALL COMPLY WITH ALL REQUIREMENTS ESTABLISHED
BY THE AUTHORITY AND SHALL DOCUMENT: (A) IMPROVEMENTS AND RELATED COSTS
THAT ARE REQUIRED FOR THE RENEWABLE ENERGY SYSTEM, QUALIFYING WATER
IMPROVEMENTS, OR QUALIFYING RESILIENCY IMPROVEMENTS OR, IF SUCH REAL
PROPERTY IS LOCATED WITHIN A CITY WITH A POPULATION OF ONE MILLION OR
MORE PERSONS, LOW CARBON INTENSITY BUILDING COMPONENT IMPROVEMENTS, TO
PROCEED; AND (B) EXPECTED ENERGY SAVINGS, ANY EXPECTED REDUCTIONS IN
GREENHOUSE GAS EMISSIONS, AND ANY OTHER ENVIRONMENTAL, ECONOMIC AND
PUBLIC HEALTH BENEFITS EXPECTED FROM THE INSTALLATION OF THE IMPROVE-
MENTS; AND (C) ANY OTHER CRITERIA THE AUTHORITY MAY SPECIFY.
10. The loan made under the sustainable energy loan program shall
constitute a lien upon the real property benefitted by such loan.
[9.] 11. 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, SHALL BE PAYABLE BY THE PROPERTY
OWNER REGARDLESS OF TAX-PAYING OR TAX-EXEMPT STATUS, and shall be levied
and collected at the same time and in [the same] A manner [as] CONSIST-
ENT WITH THE MANNER GENERALLY APPLIED TO 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
A. 5404--C 6
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.
§ 4. The New York state energy research and development authority is
authorized to develop, update, or revise, and make public all relevant
guidelines, criteria, or other requirements related to the implementa-
tion and administration of article 5-L of the general municipal law, as
amended by this act; provided, further that, no municipal corporation
shall issue or approve a new sustainable energy loan including a quali-
fying water improvement, qualifying resiliency improvement, or low
carbon intensity building components as defined by such article prior to
the publication of such updated program guidelines, criteria, or other
requirements.
§ 5. This act shall take effect immediately; provided, however, that
sections one, two, and three of this act shall take effect on the one
hundred twentieth day after it shall have become a law. Effective imme-
diately, the addition, amendment and/or repeal of any rule or regulation
necessary for the implementation of this act on its effective date are
authorized to be made and completed on or before such effective date.