A07006 Summary:

BILL NOA07006
 
SAME ASNo same as
 
SPONSORCahill
 
COSPNSRLupardo, Rosenthal, Linares, Rivera P, Markey
 
MLTSPNSRLatimer
 
Amd SS18-a, 42 & 65, add S66-m, Pub Serv L; ren SS1020-hh - 1020-jj to be 1020-ii - 1020-kk, add S1020-hh, amd SS1896 & 1899, Pub Auth L; amd S242, RP L; amd SS26-405 & 26-511, NYC Ad Cd; amd S6, Emerg Ten Prot Act of 1974; amd S4, Emerg Hous Rent Cont L
 
Relates to green jobs-green New York on-bill recovery charges; provides that the public service commission shall require each gas and electric corporation file tariffs to provide for the billing and collection of on-bill recovery charges for payment of obligations of its customers to the green jobs-green NY revolving loan fund.
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A07006 Actions:

BILL NOA07006
 
04/07/2011referred to energy
04/13/2011reported referred to codes
06/17/2011reported referred to ways and means
06/20/2011reported referred to rules
06/20/2011reported
06/20/2011rules report cal.528
06/20/2011ordered to third reading rules cal.528
01/04/2012referred to energy
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A07006 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A7006
 
SPONSOR: Cahill
  TITLE OF BILL: An act to amend the public service law, the public authorities law, the real property law, the administrative code of the city of New York, the emergency tenant protection act of nineteen seven- ty-four and the emergency housing rent control law, in relation to green jobs-green New York on-bill recovery   PURPOSE OR GENERAL IDEA OF BILL: To establish an on-bill financing program for the "Green Jobs/Green New York" program established in chap- ter 487 of the laws of 2009.   SUMMARY OF SPECIFIC PROVISIONS: Section One amends the Public Service Law to exclude Green Jobs/Green New York (GJ-GNY) on-bill financing charges from any determination of a utility's gross operating revenues. Section Two amends the Public Service Law to clarify that the rights and responsibilities of residential ratepayers participating in the GJ-GNY program shall be comparable to ratepayers who are not participating in the program. Section Three amends the Public Service Law to allow for gas corpo- ration's to establish an on-bill finance charge for customers partic- ipating in the GJ-GNY program. Section Four would require utilities to file tariffs with the Public Service Commission (PSC) within 60 days of the effective date to provide for billing and collection of GJ-GNY on-bill charges. Additionally, utilities would be directed to use existing billing technologies to collect on-bill charges and seek out funding available from the New York State Energy Research and Development Authority (NYSERDA) for electronic data interchange improvements that would streamline the collection of on-bill charges. Tariff guidelines would specify that billing and collection services must be available to all ratepayers in current good standing on mortgage obligations of the GJ-GNY program and that a utili- ty's responsibilities under GJ-GNY are limited to billing and collection of on-bill charges. The guidelines would apply the rights and responsi- bilities provided in Article Two of the Public Service Law to GJ-GNY participants with on-bill repayment plans. The on-bill tariff guidelines would provide that in the case that in the event that arrears on in on-bill financing charges remain at the time of account closure or meter transfers the payment shall be assumed by the incurring customer unless expressly assumed by a subsequent purchaser of the property subject to GJ-GNY charges. Additionally, underpayment of bills would be allocated between on-bill financing charges and other charges in the same propor- tion that such charges comprise an overall bill total, Participation in GJ-GNY would not affect a gas and electric corporation customer's eligi- bility to for any rebate or incentive offered by the utility. Section Five would require the Long island Power Authority (LIPA) to establish a program for to provide, for the collection of on-bill charg- es. Section Six authorizes NYSERDA to establish an on-bill financing program for the billing and collection of charges incurred through participation in the GJ-GNY program. Section Seven requires NYSERDA to include information regarding the participation in on-bill financing programs in its annual GJ-GNY report to the governor and legislative leaders. Section Eight requires that prior to the signing of a contract of sale for a property that subject to a GJ-GNY loan, thereafter or real estate agent representing the seller of such property, present to the prospec- tive purchaser a notice of the existence the loan which details the amount of the original charge and any remaining charges. Section Nine requires that any person, firm, company, partnership or corporation offering to sell real property that is subject to the GJ-GNY on-bill charge shall provide a prospective purchaser written notice detailing the property's obligations to the program, the amount of the original charge, the payment schedule, remaining balance and description of energy efficiency service performed on the property. The notice must be provided by the seller prior to accepting a purchase offer. Section Ten amends the Administrative Code of New York City to specify that an eligible project under the GJ-GNY program shall not constitute a major capital improvement. Sections Eleven and Twelve amend the Emergency Tenant Protection Act to specify that an eligible project under the GJ-GNY program shall not constitute a major capital improvement.   PRIOR LEGISLATIVE HISTORY:; None.   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: None.   EFFECTIVE DATE: This act shall take effect immediately.
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A07006 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          7006
 
                               2011-2012 Regular Sessions
 
                   IN ASSEMBLY
 
                                      April 7, 2011
                                       ___________
 
        Introduced by M. of A. CAHILL -- read once and referred to the Committee
          on Energy
 
        AN  ACT to amend the public service law, the public authorities law, the
          real property law, the administrative code of the city  of  New  York,
          the  emergency  tenant protection act of nineteen seventy-four and the

          emergency housing rent control law, in relation  to  green  jobs-green
          New York on-bill recovery
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Subdivision 2 of section 18-a of the public service law  is
     2  amended by adding a new paragraph (h) to read as follows:
     3    (h) On-bill recovery charges billed pursuant to section sixty-six-m of
     4  this  chapter  shall  be  excluded from any determination of an entity's
     5  gross operating revenues derived from intrastate utility operations  for
     6  purposes of this section.
     7    §  2.  Section 42 of the public service law is amended by adding a new
     8  subdivision 3 to read as follows:
     9    3. The rights and responsibilities of  residential  customers  partic-

    10  ipating  in  green  jobs-green  New  York  on-bill  recovery pursuant to
    11  section sixty-six-m of this chapter shall be substantially comparable to
    12  those of gas and electric customers not participating  in  such  on-bill
    13  recovery,  and  charges for on-bill recovery shall be treated as charges
    14  for utility service for the purpose of this article, provided that:
    15    (a) all determinations and safeguards related to the  termination  and
    16  reconnection  of  service shall apply to on-bill recovery charges billed
    17  by a utility pursuant to such section;
    18    (b) in the event that the responsibility for making  utility  payments
    19  has been assumed by occupants of a multiple dwelling pursuant to section

    20  thirty-three  of  this  article or by occupants of a two-family dwelling
    21  pursuant to section thirty-four of this article,  such  occupants  shall
    22  not  be  billed  for  any  arrears  of  on-bill  recovery charges or any
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD08783-02-1

        A. 7006                             2
 
     1  prospective on-bill recovery charges, which shall remain  the  responsi-
     2  bility of the incurring customer;
     3    (c)  deferred  payment  agreements pursuant to section thirty-seven of
     4  this article shall be available to customers  participating  in  on-bill

     5  recovery  on  the  same  terms as other customers, and the utility shall
     6  retain the same discretion to defer termination of service  as  for  any
     7  other delinquent customer;
     8    (d)  where  a  customer has a budget billing plan or levelized payment
     9  plan pursuant to section thirty-eight of this article, the utility shall
    10  recalculate the payments  under  such  plan  to  reflect  the  projected
    11  effects  of installing energy efficiency measures as soon as practicable
    12  after receipt of information on the energy audit  and  qualified  energy
    13  efficiency services selected;
    14    (e) on-bill recovery charges shall not be subject to the provisions of
    15  section forty-one of this article;

    16    (f)  late  payment charges on unpaid on-bill recovery charges shall be
    17  determined as provided in this section, and any such  charges  shall  be
    18  remitted  to the New York state energy research and development authori-
    19  ty;
    20    (g) notwithstanding the provisions  of  section  forty-three  of  this
    21  article,  when a complaint is related solely to work performed under the
    22  green jobs-green New York  program  or  to  the  appropriate  amount  of
    23  on-bill  recovery  charges, the utility shall only be required to inform
    24  the customer of the complaint handling procedures of the New York  state
    25  energy  research and development authority, which shall retain responsi-
    26  bility for handling such complaints, and such complaints  shall  not  be

    27  deemed  to  be  complaints about utility service in any other commission
    28  action or proceeding; and
    29    (h) billing information provided pursuant  to  section  forty-four  of
    30  this  article  shall  include  information  on green jobs-green New York
    31  on-bill recovery charges, including the basis for such charges, and  any
    32  information  or  inserts  provided by the New York state energy research
    33  and development authority related thereto.  In addition, at least  annu-
    34  ally the authority shall provide the utility with information for inclu-
    35  sion  or insertion in the customer's bill that sets forth the amount and
    36  duration of remaining  on-bill  recovery  charges  and  the  authority's
    37  contact  information  and  procedures  for resolving customer complaints

    38  with such charges.
    39    § 3. Paragraph (d) of subdivision  6  of  section  65  of  the  public
    40  service  law, as added by chapter 204 of the laws of 2010, is amended to
    41  read as follows:
    42    (d) for installation of capital improvements and fixtures  to  promote
    43  energy  efficiency upon the request and consent of the customer, includ-
    44  ing but not limited to the performance of  qualified  energy  efficiency
    45  services  for  customers  participating  in  green  jobs-green  New York
    46  on-bill recovery pursuant to section sixty-six-m of this article.
    47    § 4. The public service law is amended by adding a new section 66-m to
    48  read as follows:
    49    § 66-m. Green jobs-green New  York  on-bill  recovery.    1.  (a)  The
    50  commission  shall  require  each  gas  and  electric corporation to file

    51  tariffs to provide for the billing and collection  of  on-bill  recovery
    52  charges  for  payment of obligations of its customers to the green jobs-
    53  green New York revolving loan fund established pursuant to title  nine-A
    54  of  article eight of the public authorities law. To the extent practica-
    55  ble, gas and electric corporations  shall  utilize  existing  electronic
    56  data interchange infrastructure or other existing billing infrastructure

        A. 7006                             3
 
     1  to  implement  their  billing and collection responsibilities under this
     2  section. To the maximum extent  practicable,  electric  and  gas  corpo-
     3  rations  shall  utilize funding available from the New York state energy

     4  research  and  development authority to defray any costs associated with
     5  electronic data interchange improvements or other  costs  of  initiating
     6  and  implementing  this program. Within sixty days of the effective date
     7  of this section, the commission  shall  require  all  electric  and  gas
     8  corporations  to  file  tariffs  to  implement  billing  and  collection
     9  services for green jobs-green New York  recovery  charges  for  eligible
    10  customers  within  their  service  territories. Within one hundred fifty
    11  days of the effective date of  this  section  and  consistent  with  the
    12  requirements  of  the state administrative procedure act, the commission
    13  shall take final action on such tariffs and shall provide  that  billing

    14  and  collection  services  under  such tariffs shall commence as soon as
    15  practicable thereafter.
    16    (b) To ensure proper program design and implementation, each  electric
    17  and  gas  corporation  shall initially limit the number of customers who
    18  pay a green jobs-green New York on-bill recovery  charge  at  any  given
    19  time  to  no  more than three percent of its total customers, on a first
    20  come, first served basis. Prior to reaching such  limit,  the  New  York
    21  state  energy  research  and  development  authority  shall petition the
    22  commission to review said limit, and the commission shall increase  such
    23  limit  unless  the  commission finds that the program has caused signif-
    24  icant harm to the electric or gas company or its ratepayers.

    25    (c) The commission may suspend an electric or gas corporation's  offer
    26  of  the  on-bill  recovery  charge  provided  that the commission, after
    27  conducting a hearing as provided in  section  twenty  of  this  chapter,
    28  makes  a  finding  that:  (i) there is a significant increase in utility
    29  service arrears or disconnections  that  the  commission  determines  is
    30  directly  related  to  the  on-bill  recovery charge, or (ii) other good
    31  cause.
    32    (d) The on-bill recovery charge shall be collected on  the  bill  from
    33  the  customer's  electric  corporation unless the qualified energy effi-
    34  ciency services at that customer's premises  result  in  more  projected
    35  energy  savings  on  the  customer's gas bill than the electric bill, in

    36  which case the on-bill recovery charge shall be collected on the custom-
    37  er's gas corporation bill.
    38    2. Tariffs for the collection and billing of on-bill recovery  charges
    39  shall provide:
    40    (a) that billing and collection services shall be available to custom-
    41  ers  who have met the standards established by the New York state energy
    42  research and development authority  for  participation  in  the  on-bill
    43  recovery  mechanism under the green jobs-green New York program and have
    44  executed an agreement for the performance of qualified energy efficiency
    45  services under such program; provided,  however,  that  for  residential
    46  properties  any  such  customer must hold primary ownership or represent

    47  the primary owner or owners of  the  premises  and  hold  primary  meter
    48  account  responsibility  or  represent  the primary holder or holders of
    49  meter account responsibility for all meters to which such on-bill recov-
    50  ery charges will apply;
    51    (b) that the responsibilities of the electric or gas  corporation  are
    52  limited  to providing billing and collection services for on-bill recov-
    53  ery charges as directed by the authority;
    54    (c) that the rights  and  responsibilities  of  residential  customers
    55  paying  on-bill  recovery charges shall be governed by the provisions of
    56  article two of this chapter;

        A. 7006                             4
 

     1    (d) unless fully satisfied prior to sale or  transfer,  that  (i)  the
     2  on-bill  recovery  charges  for  any services provided at the customer's
     3  premises shall survive changes in ownership, tenancy  or  meter  account
     4  responsibility, and (ii) that arrears in on-bill recovery charges at the
     5  time  of account closure or meter transfer shall remain the responsibil-
     6  ity of the incurring customer, unless expressly assumed by a  subsequent
     7  purchaser of the property subject to such on-bill recovery charges;
     8    (e)  that  underpayments  of  bills shall be allocated between on-bill
     9  recovery charges and other charges in the same proportion  such  charges
    10  comprise of the overall bill total;

    11    (f)  billing and collection services shall be available without regard
    12  to whether the energy or fuel delivered by the utility is the customer's
    13  primary energy source;
    14    (g) unless otherwise precluded by  law,  participation  in  the  green
    15  jobs-green  New  York  program shall not affect a customer's eligibility
    16  for any rebate or incentive offered by a utility; and
    17    (h) any other provisions necessary to  provide  for  the  billing  and
    18  collection of on-bill recovery charges.
    19    3. The commission shall not approve any application for the conversion
    20  to  submetering  of  any  master  meter  which is subject to any on-bill
    21  recovery charges.
    22    § 5. Sections 1020-hh, 1020-ii and 1020-jj of the  public  authorities

    23  law,  as  renumbered  by chapter 433 of the laws of 2009, are renumbered
    24  sections 1020-ii, 1020-jj and 1020-kk and a new section 1020-hh is added
    25  to read as follows:
    26    § 1020-hh.  Green jobs-green New York on-bill recovery. 1.  Within one
    27  hundred fifty days of the effective date of this section, the  authority
    28  shall  establish  a program to provide for the billing and collection of
    29  on-bill recovery charges for payment of obligations of its customers  to
    30  the  green  jobs-green New York revolving loan fund established pursuant
    31  to title nine-A of article eight of this chapter. Such program shall  be
    32  consistent  with the standards set forth in subdivision three of section
    33  forty-two and section sixty-six-m of the  public  service  law.  To  the

    34  maximum  extent  practicable,  funding available from the New York state
    35  energy research and development authority shall be  utilized  to  defray
    36  any  costs  associated  with electronic data interchange improvements or
    37  other costs of initiating and implementing this program.    Billing  and
    38  collection services under such tariffs shall commence as soon as practi-
    39  cable after establishment of the program.
    40    2.  The  authority  may  suspend  its offering of the on-bill recovery
    41  charge provided that, after conducting a public hearing,  the  authority
    42  makes  a finding that there is a significant increase in utility service
    43  arrears or disconnections that  the  authority  determines  is  directly

    44  related  to  the  on-bill  recovery  charge,  or a finding of other good
    45  cause.
    46    § 6. Section 1896 of the public authorities law, as added  by  chapter
    47  487 of the laws of 2009, is amended to read as follows:
    48    § 1896. Green jobs-green New York revolving loan fund. 1. (a) There is
    49  hereby  created  a  green  jobs-green  New York revolving loan fund. The
    50  revolving loan fund shall consist of:
    51    (i) all moneys made available for the purpose of  the  revolving  loan
    52  fund pursuant to section eighteen hundred ninety-nine-a of this title;
    53    (ii)  payments  of  principal and interest, including any late payment
    54  charges, made pursuant to loan or financing agreements entered into with
    55  the authority or its designee pursuant to this section; and

        A. 7006                             5
 

     1    (iii) any interest earned by the investment of moneys in the revolving
     2  loan fund.
     3    (b) The revolving loan fund shall consist of two accounts:
     4    (i) one account which shall be maintained for monies to be made avail-
     5  able  to  provide loans to finance the cost of approved qualified energy
     6  efficiency services for residential structures and  multi-family  struc-
     7  tures, and
     8    (ii)  one  account which shall be maintained for monies made available
     9  to provide loans to finance the cost of approved qualified energy  effi-
    10  ciency  services  for non-residential structures. The initial balance of
    11  the residential account established in [clause] subparagraph (i) of this
    12  paragraph shall represent at least fifty percent of the total balance of
    13  the two accounts. The authority shall not commingle the  monies  of  the

    14  revolving  loan  fund  with any other monies of the authority or held by
    15  the authority, nor shall the  authority  commingle  the  monies  between
    16  accounts.  Payments  of  principal, interest and fees shall be deposited
    17  into the account created and maintained  for  the  appropriate  type  of
    18  eligible project.
    19    (c)  In  administering  such  program, the authority is authorized and
    20  directed to:
    21    (i) use monies made available for the revolving loan fund  to  achieve
    22  the  purposes  of this section by section eighteen hundred ninety-nine-a
    23  of this title, including but not limited to making loans  available  for
    24  eligible projects;
    25    (ii)  enter  into  contracts  with one or more program implementers to
    26  perform such functions as the authority deems appropriate; [and]
    27    (iii) establish an on-bill recovery mechanism for repayment  of  loans

    28  for the performance of qualified energy efficiency services for eligible
    29  projects  in the form of a charge appearing on the participating custom-
    30  er's utility bill provided that such on-bill  recovery  mechanism  shall
    31  provide for the utilization of any on-bill recovery programs established
    32  pursuant  to  section  sixty-six-m of the public service law and section
    33  one thousand twenty-hh of this chapter;
    34    (iv) establish standards for customer participation  in  such  on-bill
    35  recovery  mechanism,  including  standards  for  reliable  utility  bill
    36  payment, current good standing on any mortgage obligations,  alternative
    37  measures  of  credit  worthiness  and  such  additional standards as the

    38  authority deems necessary; provided  that  in  order  to  provide  broad
    39  access to on-bill recovery, the authority shall include participation by
    40  customers  who  are less likely to have access to traditional sources of
    41  financing; and
    42    (v) exercise such other powers as are necessary for the proper  admin-
    43  istration  of the program, including at the discretion of the authority,
    44  entering into agreements with applicants and with such state or  federal
    45  agencies  as  necessary to directly receive rebates and grants available
    46  for eligible projects and apply such funds  to  repayment  of  applicant
    47  loan obligations.
    48    2. (a) The authority shall provide financial assistance in the form of
    49  loans  for  the  performance of qualified energy efficiency services for

    50  eligible projects on terms and conditions established by the authority.
    51    (b) Loans made by the authority pursuant  to  this  section  shall  be
    52  subject to the following limitations:
    53    (i)  eligible  projects shall meet cost effectiveness standards devel-
    54  oped by the authority;
    55    (ii) loans shall not exceed thirteen thousand  dollars  per  applicant
    56  for approved qualified energy efficiency services for residential struc-

        A. 7006                             6
 
     1  tures, and twenty-six thousand dollars per applicant for approved quali-
     2  fied   energy   efficiency   services  for  non-residential  structures,
     3  provided, however, that the authority may permit a  loan  in  excess  of
     4  such amounts if the total cost of energy efficiency measures financed by

     5  such loan will achieve a payback period of fifteen years or less, but in
     6  no  event  shall  any  such loan exceed twenty-five thousand dollars per
     7  applicant for residential structures  and  fifty  thousand  dollars  per
     8  applicant  for  non-residential  structures; and for multi-family struc-
     9  tures loans shall be in amounts determined by the  authority,  provided,
    10  however,  that  the  authority shall assure that a significant number of
    11  residential structures are included in the program; [and]
    12    (iii) no fees or penalties shall be charged or collected  for  prepay-
    13  ment of any such loan; and
    14    (iv)  loans  shall be at interest rates determined by the authority to
    15  be no higher than necessary to make the provision of the qualified ener-
    16  gy efficiency services feasible.

    17    In determining whether to make a loan, and the amount of any loan that
    18  is made, the authority is authorized to consider whether  the  applicant
    19  or  borrower  has received, or is eligible to receive, financial assist-
    20  ance and other incentives from any other source for the qualified energy
    21  efficiency services which would be the subject of the loan.   In  deter-
    22  mining  whether a loan will achieve a payback period of fifteen years or
    23  less pursuant to subparagraph (ii) of this paragraph, the authority  may
    24  consider  the  amount  of  the  loan  to be reduced by the amount of any
    25  rebates for qualified energy efficiency services received by the  appli-
    26  cant or by the authority on behalf of an applicant.
    27    (c)  Applications  for  financial  assistance pursuant to this section

    28  shall be reviewed and evaluated by the authority or its designee  pursu-
    29  ant  to  eligibility  and qualification requirements and criteria estab-
    30  lished by the authority. The authority shall establish standards for (i)
    31  qualified energy efficiency services, and (ii) measurement and verifica-
    32  tion of energy savings. Such standards shall meet or exceed  the  stand-
    33  ards  used  by  the  authority  for similar programs in existence on the
    34  effective date of this section.
    35    (d) The amount of a fee  paid  for  an  energy  audit  provided  under
    36  section  eighteen  hundred ninety-five of this title may be added to the
    37  amount of a loan that is made under this section to finance the cost  of
    38  an  eligible project conducted in response to such energy audit. In such
    39  a case, the amount of the fee may be reimbursed from  the  fund  to  the
    40  borrower.

    41    (e) In establishing an on-bill recovery mechanism:
    42    (i)  the  cost-effectiveness of an eligible project shall be evaluated
    43  solely on the basis of the costs and projected savings to  the  applying
    44  customer,  using standard engineering assessments and prior billing data
    45  and usage patterns; provided however that based  upon  the  most  recent
    46  customer  data  available,  on  an annualized basis, the monthly on-bill
    47  repayment amount for a package of measures shall not exceed  one-twelfth
    48  of the savings projected to result from the installation of the measures
    49  provided  further  that nothing herein shall be construed to prohibit or
    50  prevent customers whose primary heating energy source is from  delivera-
    51  ble fuels from participating in the program;

    52    (ii)  the  authority  shall establish a process for receipt and resol-
    53  ution of customer complaints concerning on-bill recovery charges and for
    54  addressing delays and defaults in customer payments; and
    55    (iii) the authority may limit the availability of lighting measures or
    56  household appliances that are not permanently affixed to real property.

        A. 7006                             7
 
     1    3. The authority shall evaluate the cost-effectiveness of the  on-bill
     2  recovery  mechanism on an on-going basis.  (a) In conducting such evalu-
     3  ation, the authority shall request each customer to provide:
     4    (i)  information on energy usage and/or permission to collect informa-

     5  tion on energy usage from utilities and other retail vendors,  including
     6  but  not  limited  to  information required to be furnished to consumers
     7  under article seventeen of the energy law;
     8    (ii) information on other sources of energy  used  in  the  customer's
     9  premises; and
    10    (iii) information on any improvements or modifications to the premises
    11  that may significantly affect energy usage including information regard-
    12  ing  energy  usage prior to and subsequent to any qualified energy effi-
    13  ciency services completed.
    14    (b) At a minimum the authority shall collect and maintain  information
    15  for  dates  prior  to  the  performance  of  qualified energy efficiency

    16  services, to establish a baseline, and for dates covering  a  subsequent
    17  time  period  to  measure  the effectiveness of such measures. Such data
    18  shall be correlated with information from the energy audit and any other
    19  relevant information, including information on local weather conditions,
    20  and shall be used to evaluate the use of on-bill recovery and to improve
    21  the accuracy of projections of cost-effectiveness on an on-going  basis.
    22  An analysis of such data shall be included in the annual report prepared
    23  pursuant to section eighteen hundred ninety-nine of this title.
    24    (c)  All  information collected by the authority shall be confidential
    25  and shall be used exclusively for the purposes of this subdivision.

    26    4.  (a) Qualified energy efficiency services repaid through an on-bill
    27  recovery mechanism shall be considered a special energy project pursuant
    28  to section eighteen hundred fifty-one of  this  article.  The  New  York
    29  state  energy research and development authority shall secure every loan
    30  issued for such services that are to be repaid through an on-bill recov-
    31  ery mechanism with a mortgage upon the real property that is improved by
    32  such services.  Such mortgage shall be recorded pursuant to section  two
    33  hundred ninety-one-d of the real property law.
    34    (b)  All  terms and provisions of a green jobs-green New York mortgage
    35  pursuant to this subdivision shall be subject  and  subordinate  to  the

    36  lien  of  any  mortgage  or  mortgages  by a bank, credit union or other
    37  institutional lender. When a subsequent purchaser  of  the  property  is
    38  granted  a  mortgage,  the  green  jobs-green New York mortgage shall be
    39  subordinate to the terms of that mortgage.
    40    § 7. Subdivision 3 of section 1899 of the public authorities  law,  as
    41  added by chapter 487 of the laws of 2009, is amended to read as follows:
    42    3.  The  status  of the authority's activities and outcomes related to
    43  section eighteen hundred ninety-six of this  title.  Such  report  shall
    44  include,  but  not  be  limited  to:  (a) the number of persons who have
    45  applied for and received financial assistance through the revolving loan
    46  fund; (b) the revolving loan fund account balances; (c)  the  number  of

    47  loans  in default; [and] (d) the amount and nature of the costs incurred
    48  by the authority for the activities described in paragraph (c) of subdi-
    49  vision one of section eighteen hundred ninety-six of this title; and (e)
    50  the authority's activities  and  outcomes  related  to  establishing  an
    51  on-bill  recovery  mechanism,  including  the number of persons who have
    52  applied for and who have received  financial  assistance  that  utilizes
    53  on-bill  recovery  and  the  results of the evaluation program performed
    54  pursuant to subdivision three of section eighteen hundred ninety-six  of
    55  this title;

        A. 7006                             8
 
     1    §  8.  Section 242 of the real property law is amended by adding a new
     2  subdivision 4 to read as follows:

     3    4.  Disclosure  prior  to  the  sale of real property to which a green
     4  jobs-green New York on-bill recovery charge  applies.  (a)  Any  person,
     5  firm, company, partnership or corporation offering to sell real property
     6  which  is subject to a green jobs-green New York on-bill recovery charge
     7  pursuant to title nine-A of article eight of the public authorities  law
     8  shall  provide  written  notice  to  the  prospective  purchaser  or the
     9  prospective purchaser's agent, stating as  follows:  "This  property  is
    10  subject  to  a  green jobs-green New York on-bill recovery charge". Such
    11  notice shall also state the total amount of  the  original  charge,  the
    12  payment schedule and the approximate remaining balance, a description of

    13  the  energy efficiency services performed, including improvements to the
    14  property, and an explanation of the benefit of the green jobs-green  New
    15  York  qualified  energy  efficiency  services.    Such  notice  shall be
    16  provided by the seller prior to accepting a purchase offer.
    17    (b) Any prospective or actual purchaser who has suffered a loss due to
    18  a violation of this  subdivision  is  entitled  to  recover  any  actual
    19  damages  incurred  from the person offering to sell or selling said real
    20  property.
    21    § 9. Subparagraph (g) of paragraph  1  of  subdivision  g  of  section
    22  26-405 of the administrative code of the city of New York, as amended by
    23  chapter 749 of the laws of 1990, is amended to read as follows:

    24    (g) There has been since July first, nineteen hundred seventy, a major
    25  capital  improvement required for the operation, preservation or mainte-
    26  nance of the structure. A major capital improvement shall not include an
    27  eligible project under the green jobs-green New York program by the  New
    28  York state energy research and development authority, established pursu-
    29  ant  to  title nine-A of article eight of the public authorities law. An
    30  adjustment under this subparagraph [(g)] shall be in  an  amount  suffi-
    31  cient to amortize the cost of the improvements pursuant to this subpara-
    32  graph [(g)] over a seven-year period; or
    33    §  10.  Paragraph 6 of subdivision c of section 26-511 of the adminis-
    34  trative code of the city of New York, as amended by chapter 116  of  the

    35  laws of 1997, is amended to read as follows:
    36    (6)  provides  criteria whereby the commissioner may act upon applica-
    37  tions by owners for increases in  excess  of  the  level  of  fair  rent
    38  increase  established under this law provided, however, that such crite-
    39  ria shall provide (a) as to hardship applications, for  a  finding  that
    40  the level of fair rent increase is not sufficient to enable the owner to
    41  maintain  approximately  the same average annual net income (which shall
    42  be computed without regard to debt service, financing costs  or  manage-
    43  ment  fees)  for the three year period ending on or within six months of
    44  the date of an application pursuant to such criteria  as  compared  with
    45  annual  net income, which prevailed on the average over the period nine-
    46  teen hundred sixty-eight through nineteen hundred seventy,  or  for  the

    47  first three years of operation if the building was completed since nine-
    48  teen  hundred  sixty-eight  or  for the first three fiscal years after a
    49  transfer of title to a new owner provided the new owner can establish to
    50  the satisfaction of the commissioner that he or she  acquired  title  to
    51  the  building as a result of a bona fide sale of the entire building and
    52  that the new owner is unable to obtain requisite records for the  fiscal
    53  years  nineteen  hundred  sixty-eight  through  nineteen hundred seventy
    54  despite diligent efforts to obtain same from predecessors in  title  and
    55  further  provided that the new owner can provide financial data covering
    56  a minimum of six years under his or  her  continuous  and  uninterrupted

        A. 7006                             9
 
     1  operation  of  the building to meet the three year to three year compar-

     2  ative test periods herein provided; and (b) as  to  completed  building-
     3  wide  major  capital  improvements, for a finding that such improvements
     4  are deemed depreciable under the Internal Revenue Code and that the cost
     5  is  to  be  amortized over a seven-year period, based upon cash purchase
     6  price exclusive of  interest  or  service  charges.    A  major  capital
     7  improvement  shall not include an eligible project under the green jobs-
     8  green New York program by the New York state energy research and  devel-
     9  opment  authority, established pursuant to title nine-A of article eight
    10  of the public authorities law. Notwithstanding anything to the  contrary
    11  contained  herein,  no  hardship increase granted pursuant to this para-
    12  graph shall, when added to the annual gross rents, as determined by  the

    13  commissioner, exceed the sum of, (i) the annual operating expenses, (ii)
    14  an  allowance for management services as determined by the commissioner,
    15  (iii) actual annual mortgage debt service (interest and amortization) on
    16  its indebtedness to a  lending  institution,  an  insurance  company,  a
    17  retirement  fund or welfare fund which is operated under the supervision
    18  of the banking or insurance laws of the state of New York or the  United
    19  States,  and (iv) eight and one-half percent of that portion of the fair
    20  market value of the property which exceeds the unpaid  principal  amount
    21  of  the  mortgage indebtedness referred to in subparagraph (iii) of this
    22  paragraph. Fair market value for the purposes of this paragraph shall be
    23  six times the annual gross rent. The collection of any increase  in  the
    24  stabilized  rent  for any apartment pursuant to this paragraph shall not

    25  exceed six percent in any year from the  effective  date  of  the  order
    26  granting  the  increase over the rent set forth in the schedule of gross
    27  rents, with collectability of any dollar excess above  said  sum  to  be
    28  spread forward in similar increments and added to the stabilized rent as
    29  established or set in future years;
    30    §  11. Paragraph 3 of subdivision d of section 6 of section 4 of chap-
    31  ter 576 of the laws of 1974 constituting the emergency tenant protection
    32  act of nineteen seventy-four, as amended by chapter 749 of the  laws  of
    33  1990, is amended to read as follows:
    34    (3)  there has been since January first, nineteen hundred seventy-four
    35  a major capital improvement required for the operation, preservation  or
    36  maintenance  of  the  structure.   A major capital improvement shall not

    37  include an eligible project under the green jobs-green New York  program
    38  by  the New York state energy research and development authority, estab-
    39  lished pursuant to title 9-A of article 8 of the public authorities law.
    40  An adjustment under this paragraph shall be in an amount  sufficient  to
    41  amortize  the cost of the improvements pursuant to this paragraph over a
    42  seven-year period, or
    43    § 12. The second undesignated paragraph of paragraph (a)  of  subdivi-
    44  sion 4 of section 4 of chapter 274 of the laws of 1946, constituting the
    45  emergency housing rent control law, as amended by chapter 21 of the laws
    46  of  1962,  clause  5  as  amended by chapter 253 of the laws of 1993, is
    47  amended to read as follows:
    48    No application for adjustment of maximum rent based upon a sales price

    49  valuation shall be filed by the landlord under this  subparagraph  prior
    50  to  six  months from the date of such sale of the property. In addition,
    51  no adjustment ordered by the commission  based  upon  such  sales  price
    52  valuation  shall  be  effective  prior to one year from the date of such
    53  sale. Where, however, the assessed valuation of the  land  exceeds  four
    54  times  the  assessed  valuation of the buildings thereon, the commission
    55  may determine a valuation of the property equal to five times the equal-
    56  ized assessed valuation of the  buildings,  for  the  purposes  of  this

        A. 7006                            10
 
     1  subparagraph. The commission may make a determination that the valuation
     2  of  the  property  is  an  amount different from such equalized assessed
     3  valuation where there is a request for  a  reduction  in  such  assessed

     4  valuation  currently pending; or where there has been a reduction in the
     5  assessed valuation for the year next preceding the effective date of the
     6  current assessed valuation in effect at the time of the  filing  of  the
     7  application.  Net  annual return shall be the amount by which the earned
     8  income exceeds the operating expenses of the property,  excluding  mort-
     9  gage  interest  and  amortization, and excluding allowances for obsoles-
    10  cence and reserves, but including an allowance for depreciation  of  two
    11  per  centum  of the value of the buildings exclusive of the land, or the
    12  amount shown for depreciation of the buildings in  the  latest  required
    13  federal  income  tax return, whichever is lower; provided, however, that
    14  (1) no allowance for depreciation of the  buildings  shall  be  included
    15  where  the  buildings have been fully depreciated for federal income tax

    16  purposes or on the books of the owner; or (2) the landlord who  owns  no
    17  more  than four rental units within the state has not been fully compen-
    18  sated by increases in rental income  sufficient  to  offset  unavoidable
    19  increases  in property taxes, fuel, utilities, insurance and repairs and
    20  maintenance, excluding mortgage interest and amortization, and excluding
    21  allowances for  depreciation,  obsolescence  and  reserves,  which  have
    22  occurred since the federal date determining the maximum rent or the date
    23  the  property  was acquired by the present owner, whichever is later; or
    24  (3) the landlord operates a hotel or rooming house or owns a cooperative
    25  apartment and has not been fully  compensated  by  increases  in  rental
    26  income  from  the controlled housing accommodations sufficient to offset
    27  unavoidable increases in property taxes and other costs as are allocable

    28  to such controlled housing accommodations, including costs of  operation
    29  of  such  hotel  or  rooming  house, but excluding mortgage interest and
    30  amortization, and excluding allowances  for  depreciation,  obsolescence
    31  and reserves, which have occurred since the federal date determining the
    32  maximum  rent  or  the  date the landlord commenced the operation of the
    33  property, whichever is later; or (4) the landlord and tenant voluntarily
    34  enter into a valid written lease in good faith with respect to any hous-
    35  ing accommodation, which lease provides for an increase in  the  maximum
    36  rent not in excess of fifteen per centum and for a term of not less than
    37  two  years,  except  that  where  such lease provides for an increase in
    38  excess of fifteen  per  centum,  the  increase  shall  be  automatically
    39  reduced  to fifteen per centum; or (5) the landlord and tenant by mutual

    40  voluntary written agreement agree to a substantial increase or  decrease
    41  in dwelling space or a change in the services, furniture, furnishings or
    42  equipment provided in the housing accommodations; provided that an owner
    43  shall  be entitled to a rent increase where there has been a substantial
    44  modification or increase  of  dwelling  space  or  an  increase  in  the
    45  services, or installation of new equipment or improvements or new furni-
    46  ture  or furnishings provided in or to a tenant's housing accommodation.
    47  The permanent increase in the maximum  rent  for  the  affected  housing
    48  accommodation  shall  be  one-fortieth of the total cost incurred by the
    49  landlord in providing such modification or increase in  dwelling  space,
    50  services,  furniture,  furnishings  or  equipment, including the cost of
    51  installation, but excluding finance charges  provided  further  that  an

    52  owner  who  is entitled to a rent increase pursuant to this clause shall
    53  not be entitled to a further rent increase based upon  the  installation
    54  of  similar equipment, or new furniture or furnishings within the useful
    55  life of such new equipment, or new furniture or furnishings.  The  owner
    56  shall  give  written  notice  to  the  commission of any such adjustment

        A. 7006                            11
 
     1  pursuant to this clause; or (6) there has been, since March first, nine-
     2  teen hundred fifty, an increase in  the  rental  value  of  the  housing
     3  accommodations as a result of a substantial rehabilitation of the build-
     4  ing  or housing accommodation therein which materially adds to the value
     5  of the property or appreciably prolongs  its  life,  excluding  ordinary
     6  repairs, maintenance and replacements; or (7) there has been since March

     7  first,  nineteen hundred fifty, a major capital improvement required for
     8  the operation, preservation or maintenance of  the  structure.  A  major
     9  capital  improvement  shall  not  include  an eligible project under the
    10  green jobs-green New York program by the New York state energy  research
    11  and  development authority, established pursuant to title 9-A of article
    12  8 of the public authorities law; or  (8)  there  has  been  since  March
    13  first,  nineteen  hundred fifty, in structures containing more than four
    14  housing accommodations, other improvements made with the express consent
    15  of the tenants in occupancy of at least seventy-five per centum  of  the
    16  housing  accommodations,  provided,  however, that no adjustment granted
    17  hereunder shall exceed fifteen per centum unless the tenants have agreed

    18  to a higher percentage of increase, as herein provided; or (9) there has
    19  been, since March first, nineteen hundred fifty,  a  subletting  without
    20  written  consent from the landlord or an increase in the number of adult
    21  occupants who are not members of the immediate family of the tenant, and
    22  the landlord has not been compensated  therefor  by  adjustment  of  the
    23  maximum  rent  by  lease  or  order of the commission or pursuant to the
    24  federal act; or (10) the presence of unique  or  peculiar  circumstances
    25  materially  affecting  the  maximum  rent has resulted in a maximum rent
    26  which is substantially lower than the rents generally prevailing in  the
    27  same area for substantially similar housing accommodations.
    28    §  13. This act shall take effect immediately; provided, however, that
    29  the amendments to section 26-405 of the city rent and rehabilitation law

    30  made by section nine of this act shall remain in full force  and  effect
    31  only  as  long  as  the  public  emergency  requiring the regulation and
    32  control of residential rents and evictions  continues,  as  provided  in
    33  subdivision  3  of section 1 of the local emergency housing rent control
    34  act; provided further that the amendments to section 26-511 of the  rent
    35  stabilization  law of nineteen hundred sixty-nine made by section ten of
    36  this act shall expire on the same date as such law expires and shall not
    37  affect the expiration of such law as provided under  section  26-520  of
    38  such law, as from time to time amended; provided further that the amend-
    39  ments  to  section  6 of the emergency tenant protection act of nineteen
    40  seventy-four made by section eleven of this act shall expire on the same
    41  date as such act expires and shall not affect the expiration of such act

    42  as provided in section 17 of chapter 576 of the laws of  1974,  as  from
    43  time  to  time  amended;  and  further  provided  that the amendments to
    44  section 4 of the emergency housing rent  control  law  made  by  section
    45  twelve of this act shall expire on the same date as such law expires and
    46  shall not affect the expiration of such law as provided in subdivision 2
    47  of section 1 of chapter 274 of the laws of 1946.
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