NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A6731
SPONSOR: Stern PURPOSE OR GENERAL IDEA OF BILL:
To expand the C-PACE program to include projects related to climate and
resiliency goals.
SUMMARY OF PROVISIONS:
Section one updates the legislative intent of the commercial property
assessed clean energy program (C-PACE) to reflect the goals of the
Climate Leadership and Community Protection Act (CLCPA).
Section two updates C-PACE definitions to include new uses of CPACE for
resiliency and water efficiency improvements. This section also clari-
fies existing study and audit requirements for existing C-Pace projects.
Section three removes the cost effectiveness standard to increase the
type of projects eligible for C-PACE funding and imposes financing
requirements to ensure the value of the property can be maintained.
This section also requires consent of the municipality for funding of
the project.
Section four of this bill requires new energy efficiency improvement
guidelines from NYSERDA to facilitate this new legislation.
Section five provides the effective date.
JUSTIFICATION:
The C-PACE was enacted more than ten years ago and this legislation
represents critical updates to keep up with our changing climate and
newly enacted climate goals. Since enactment seventy-one municipalities
across the State have passed local laws allowing for C-PACE financing in
their communities, representing investments of over $200 million. These
changes will allow for new types of projects that will be required for
compliance with the CLCPA and since C-PACE are privately funded will be
done at no costs to the taxpayers.
Commercial property owners routinely seek financing for improvements
that are consistent with the State's energy and climate goals and which
are not required by law, but that are not deemed 'cost-effective'- for
example beneficial electrification, renewable energy, storage, and deep
energy efficiency. This removal of "cost effectiveness" will allow these
projects to qualify for C-PACE financing. In the past 3 years, several
states, including Connecticut, Wisconsin, Massachusetts and others have
either amended their enabling statutes to remove cost-effectiveness
rand/or published program guidelines that attach C-PACE financing of new
buildings to the achievement of simple energy performance or design
standards.
With New York's ambitious climate and resiliency goals, it is critical
that C-PACE is utilized to its fullest potential. C-PACE has proven to
be a valuable tool to fund energy efficiency retrofits throughout the
state, however enabling C-PACE to fund the full cost of energy efficien-
cy, renewable energy, and resiliency will accelerate the adoption of
these projects ahead of mandated building codes. If we as a state want
buildings to incorporate technologies and standards that will hasten
decarbonization, then it is paramount we re-examine how 'cost effective-
ness' is impeding the adoption of C-PACE financing.
PRIOR LEGISLATIVE HISTORY:
New bill.
FISCAL IMPLICATIONS:
None to the state.
EFFECTIVE DATE:
This act shall take effect immediately.
