A40004 Summary:

BILL NO    A40004A

SAME AS    Same as Uni. S66004-A

SPONSOR    Rules (Sweeney)

COSPNSR    Cahill, Englebright, Hevesi, Lupardo, Silver, Weisenberg, DelMonte,
           Lavine, Fields, Paulin, Nolan, Thiele, Farrell

MLTSPNSR   

Add Art 5-L SS119-ee - 119-gg, Gen Mun L

Authorizes municipalities to create a municipal sustainable energy loan program
using federal grant assistance or federal credit support available for such
purpose.

A40004 Actions:

BILL NO    A40004A

11/10/2009 referred to energy
11/16/2009 amend and recommit to energy
11/16/2009 print number 40004a
11/16/2009 reported referred to ways and means
11/16/2009 reported referred to rules
11/16/2009 reported 
11/16/2009 rules report cal.682
11/16/2009 substituted by s66004a
           S66004  AMEND=A  THOMPSON
           11/10/2009 REFERRED TO RULES
           11/16/2009 AMEND AND RECOMMIT TO RULES
           11/16/2009 PRINT NUMBER 66004A
           11/16/2009 ORDERED TO THIRD READING CAL.3
           11/16/2009 MESSAGE OF NECESSITY - 3 DAY MESSAGE
           11/16/2009 PASSED SENATE
           11/16/2009 DELIVERED TO ASSEMBLY
           11/16/2009 referred to energy
           11/16/2009 substituted for a40004a
           11/16/2009 ordered to third reading rules cal.682
           11/16/2009 ruling of chair on point of order
           11/16/2009 message of necessity - 3 day message
           11/16/2009 passed assembly
           11/16/2009 returned to senate
           11/17/2009 DELIVERED TO GOVERNOR
           11/19/2009 SIGNED CHAP.497

A40004 Votes:

A40004 Memo:

BILL NUMBER:A40004A

TITLE OF BILL:

An act to amend the general municipal law, in relation to authorizing
municipalities to create a municipal sustainable energy loan program

PURPOSE:

This legislation would authorize municipalities to create sustainable
energy loan programs to provide loans to property owners for the
installation of renewable energy systems and energy efficiency
measures.

SUMMARY OF PROVISIONS:

Section 1 of the bill would create a new Article 5-L of the General
Municipal Law entitled, "Municipal Sustainable Energy Loan Program."
The new article would consist of three new sections of the General
Municipal Law.

A new section 119-ee would set forth legislative findings and
declaration, including that it is the policy of New York State to
achieve statewide energy efficiency and renewable energy goals, reduce
greenhouse gas emissions and mitigate the effect of global climate
change, and advance a clean energy economy. This section would provide
further that to achieve such policy and goals the State must promote
the deployment of renewable energy systems and energy efficiency
measures throughout the state. In addition, it would provide that
municipalities would fulfill an important public purpose by providing
loans to property owners for the installation of renewable energy
systems and energy efficiency measures that advance these policies and
goals.

A new section 119-ff would define the following terms used in the
article: authority, credit support, energy audit, energy efficiency
improvement, municipal corporation, renewable energy system, and
renewable energy system feasibility study.

A new section 119-gg would authorize any municipality to establish a
new Sustainable Energy Loan Program using federal grant assistance or
federal credit support. The municipality would be authorized to make a
loan to a property owner to finance the installation of renewable
energy systems and energy efficiency improvements, related energy
audits and renewable energy system feasibility studies, and the
verification of the installation of such systems and improvements.

For purposes of energy audits and renewable energy system feasibility
studies, the bill would allow municipalities to either (1) utilize
lists of contractors certified by the New York State Energy Research
and Development Authority ("NYSERDA"), (2) utilize lists of
contractors certified by an entity (including the municipality)
approved by NYSERDA, or (3) adopt a local law providing for the
certification of contractors based on criteria that are at least as
stringent as the criteria adopted by NYSERDA. Similarly, nothing in
the bill would prevent a municipality from adopting a local law


providing for the certification of contractors that install renewable
energy systems or energy efficiency improvements or, alternatively,
from utilizing NYSERDA lists. However, the loan program would be
required to utilize any lists of cost effective energy efficiency
improvements for different building types that have been approved by
NYSERDA, and to verify and report on the installation and performance
of renewable energy systems and energy efficiency improvements
financed by the program.

Every loan under the program must be repaid over a term not to exceed
the weighted average of the useful life of the renewable energy
systems and energy efficiency improvements.  The principal amount of
the loan, excluding interest, would be limited to the lesser of (1)
ten percent of the appraised real property value; or (2) the combined
actual costs of (a) installing the renewable energy system and energy
efficiency improvements (including the costs of necessary equipment,
materials, and labor), (b) each related energy audit and renewable
energy system feasibility study, and ( c) verification of such
renewable energy system and energy efficiency improvements. The
municipal corporation would set a fixed rate of interest for the
repayment of the principal amount of the loan.

Energy efficiency improvements would qualify for a loan if they are
identified in an energy audit and are cost effective. Renewable energy
systems would qualify for a loan if they are determined to be feasible
through a renewable energy system feasibility study.

The municipality would have a lien on the real property that is
benefitted by such loan.  The municipality would have the option, but
would not be mandated to, require that the loan made under the
sustainable energy program be repaid by the property owner through a
charge on the real property benefitted by such loan. If the
municipality so chooses, such charge would be levied and collected at
the same time and in the same manner as municipal taxes. Such charge
would be separately listed on the tax bill. If the property owner
failed t6 pay the charge, the county would not be mandated to credit
or otherwise guarantee the amount of such unpaid charge to the
municipal corporation which authorized loan.

Section 2 of the bill would provide for an immediate effective date.

EXISTING LAW:

Chapter 409 of the laws of 2009 authorizes town refuse and garbage
districts to provide financing to residential property owners for
energy audits and energy efficiency improvements.  Chapter 344 of the
laws of 2009 authorizes the City of Binghamton to create a sustainable
energy loan program similar to this bill.  Chapter 336 of the laws
of2009 authorizes the Town of Bedford to create a sustainable energy
loan program similar to this bill. The General Municipal Law does not
currently-authorize municipalities to create programs similar to the
program contained in this bill.

LEGISLATIVE HISTORY:

This is a new bill.


STATEMENT IN SUPPORT:

Governor Paterson's 2009 State of the State address outlined his
aggressive plan to meet 45% of New York State's electricity needs
through clean renewable energy and improved energy efficiency by 2015
("45 by 15"). Enabling municipalities to promote and finance the
installation of renewable energy systems and energy efficiency
measures moves the State toward this important goal.

The Governor's "45 by 15" goal advances several policy objectives
important to New Yorkers, including the need to lower energy costs,
create jobs and stimulate the economy, improve energy reliability and
security, and reduce greenhouse gas emissions. By promoting and
facilitating the installation of renewable energy systems and energy
efficiency improvements at residential and commercial properties all
across the State, this bill will help the State achieve the "45 by 15"
goal and will substantially advance our energy policy objectives.

Moreover, several municipalities have begun to implement or are
seeking to implement sustainable energy loan programs. As local
government officials and residents alike seek ways to advance the
State's energy goals, several municipalities have launched programs
similar to the sustainable energy loan program authorized by this
bill. For example, the Town of Babylon has initiated a substantial
program on Long Island, and the City of Binghamton and the Town of
Bedford have obtained specific State legislation to initiate their
programs. This bill would authorize any municipality to enact a local
law to commence a program that advances the State's energy goals by
making energy efficiency improvements and renewable energy systems
more affordable to all property owners.

Finally, this bill would also assist local governments in applying for
funding made available through the American Recovery and Reinvestment
Act of 2009 ("ARRA"). The United States Department of Energy has
competitive grant opportunities available to local governments that
may be used to support sustainable energy loan programs. The State
improves its chance of obtaining such federal assistance with passage
of this bill because municipalities will be able to demonstrate that
they can leverage the federal funds through use of the sustainable
energy loan program, and maintain the program beyond the life of the
ARRA funds.

BUDGET IMPLICATIONS:

This bill would not have State budget implications.

EFFECTIVE DATE:

This bill would take effect immediately.