Add §1885, amd §1851, Pub Auth L; add §54, Pub Serv L; amd §242, RP L
 
Requires on-bill financing be an option for certain energy efficiency services; requires the disclosure of on-bill financing prior to the sale of real property.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A8270
SPONSOR: Burke
 
TITLE OF BILL:
An act to amend the public authorities law, the public service law, and
the real property law, in relation to requiring on-bill financing be an
option for certain energy efficiency services and requiring the disclo-
sure of on-bill financing prior to the sale of real property
 
PURPOSE OR GENERAL IDEA OF BILL:
This bill would make on-bill financing mandatory for anyone providing
energy efficiency services, including but not limited to solar panel
installation, insulation installation, geothermal, and other services
deemed appropriate by the public authority.
 
SUMMARY OF PROVISIONS:
Section 1 states that the public authorities law is amended by requiring
on-bill financing for any individual offering energy efficiency
services. Section 2 states that energy efficiency services shall mean a
modification to a structure approved by the authority which is consist-
ent with standards established by the authority and that will increase
the energy efficiency and conservation of a new or existing structure.
Section 3 states that any person, company, or municipality must also
offer on-bill financing for energy efficiency services. Section 4 states
that the owner of a property utilizing on-bill financing shall either
transfer on-bill financing to the new owner of the property upon sale or
shall pay off the remainder owed upon sale. Section 5 states that this
bill shall take effect on the first of January next succeeding the date
on which it shall have become a law.
 
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE):
N/A
 
JUSTIFICATION:
As climate change becomes a greater and greater threat to New York, the
need for-average, everyday citizens to become involved grows and grows.
Yet many-citizens who may want to live in a more climate conscious way
are barred from doing so by the cost of renovations. According to ar2022
Pew Research Center study, wile 39% of Americans expressed interest in
installing solar panels, only 8% have actually done so. More must be
done to break down these barriers to greater popular involvement in
climate activism, including in making'it easier to afford climate
improvements. This is where on-bill financing comes in; on-bill financ-
ing would make it so that the installation •of energy efficiency
services such as solar, geothermal, or other energy additions which
would decrease energy costs could be paid for using the savings incurred
by the installation of said services, and the payment would -simply come
from an individual's utility bill. This would make it so. that those
who wish to install energy efficiency services would not need to put
down several thousand dollars worth for a down payment, and could
instead pay back the installation service monthly through the savings
accrued by switching over to a less costly energy service such as solar.
This would make these energy efficiency services more prevalent, as more
citizens could afford installation of services reducing energy consump-
tion which would both help assist against climate change and reduce
overall costs for everyday New Yorkers.
 
PRIOR LEGISLATIVE HISTORY:
N/A
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
Click here to enter text.
 
EFFECTIVE DATE:
Click here to enter text.
STATE OF NEW YORK
________________________________________________________________________
8270
2023-2024 Regular Sessions
IN ASSEMBLY
November 15, 2023
___________
Introduced by M. of A. BURKE -- read once and referred to the Committee
on Corporations, Authorities and Commissions
AN ACT to amend the public authorities law, the public service law, and
the real property law, in relation to requiring on-bill financing be
an option for certain energy efficiency services and requiring the
disclosure of on-bill financing prior to the sale of real property
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The public authorities law is amended by adding a new
2 section 1885 to read as follows:
3 § 1885. On-bill financing option required. Any person who offers ener-
4 gy efficiency services shall offer on-bill financing for such services.
5 § 2. Section 1851 of the public authorities law is amended by adding a
6 new subdivision 12 to read as follows:
7 12. "Energy efficiency services" means a modification to a structure
8 approved by the authority which is consistent with standards established
9 by the authority and that will increase the energy efficiency and
10 conservation of a new or existing structure, including but not limited
11 to:
12 (a) application of weatherstripping, caulking, sealant and other mate-
13 rials around doors, windows, and other areas of a building for the
14 purpose of insulating or sealing openings in the building envelope and
15 within the building to mitigate energy loss;
16 (b) testing, repairing and replacing heating or cooling systems or
17 components of such systems;
18 (c) thermostat upgrades;
19 (d) water heater repair and replacement;
20 (e) roof, chimney, fireplace and roof vent repair, insofar as such
21 repairs are determined by an energy audit to be necessary to mitigate
22 energy loss or resolve energy system related health and safety issues;
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD13570-01-3
A. 8270 2
1 (f) repair and replacement of storm windows, permanent windows and
2 exterior doors;
3 (g) repair or replacement of major household appliances;
4 (h) installation of thermal solar heat or hot water systems;
5 (i) addition of insulation to exterior walls or ceilings;
6 (j) replacement of inefficient light bulbs and lighting fixtures and
7 systems;
8 (k) minor repairs that are necessary to ensure maximum efficiency from
9 the provision of energy efficiency services;
10 (l) installation of carbon monoxide detectors and indoor environmental
11 testing and mitigation deemed necessary as a result of the provision of
12 other energy efficiency services;
13 (m) fuel switching to convert an electrically-heated building to a
14 more efficient heating source provided that significant energy cost-sav-
15 ings can be demonstrated pursuant to standards established by the
16 authority;
17 (n) installation of energy technologies eligible for net energy meter-
18 ing pursuant to section sixty-six-j or sixty-six-l of the public service
19 law; and
20 (o) purchase and installation of geothermal energy systems.
21 § 3. The public service law is amended by adding a new section 54 to
22 read as follows:
23 § 54. On-bill financing option required. 1. Any person, corporation,
24 or municipality who offers energy efficiency services shall offer
25 on-bill financing for such services.
26 2. For the purposes of this section, the term "energy efficiency
27 services" means a modification to a structure approved by the department
28 which is consistent with standards established by the department and
29 that will increase the energy efficiency and conservation of a new or
30 existing structure, including but not limited to:
31 (a) application of weatherstripping, caulking, sealant and other mate-
32 rials around doors, windows, and other areas of a building for the
33 purpose of insulating or sealing openings in the building envelope and
34 within the building to mitigate energy loss;
35 (b) testing, repairing and replacing heating or cooling systems or
36 components of such systems;
37 (c) thermostat upgrades;
38 (d) water heater repair and replacement;
39 (e) roof, chimney, fireplace and roof vent repair, insofar as such
40 repairs are determined by an energy audit to be necessary to mitigate
41 energy loss or resolve energy system related health and safety issues;
42 (f) repair and replacement of storm windows, permanent windows and
43 exterior doors;
44 (g) repair or replacement of major household appliances;
45 (h) installation of thermal solar heat or hot water systems;
46 (i) addition of insulation to exterior walls or ceilings;
47 (j) replacement of inefficient light bulbs and lighting fixtures and
48 systems;
49 (k) minor repairs that are necessary to ensure maximum efficiency from
50 the provision of energy efficiency services;
51 (l) installation of carbon monoxide detectors and indoor environmental
52 testing and mitigation deemed necessary as a result of the provision of
53 other energy efficiency services;
54 (m) fuel switching to convert an electrically-heated building to a
55 more efficient heating source provided that significant energy cost-sav-
A. 8270 3
1 ings can be demonstrated pursuant to standards established by the
2 department;
3 (n) installation of energy technologies eligible for net energy meter-
4 ing pursuant to section sixty-six-j or sixty-six-l of this chapter; and
5 (o) purchase and installation of geothermal energy systems.
6 § 4. Subdivision 4 of section 242 of the real property law, as added
7 by chapter 388 of the laws of 2011, is amended to read as follows:
8 4. Disclosure prior to the sale of real property to which [a green
9 jobs-green New York] on-bill [recovery charge] financing applies. (a)
10 Any person, firm, company, partnership or corporation offering to sell
11 real property which is subject to a green jobs-green New York on-bill
12 recovery charge pursuant to title nine-A of article eight of the public
13 authorities law or any other on-bill financing shall provide written
14 notice to the prospective purchaser or the prospective purchaser's
15 agent, stating as follows: "This property is subject to a green jobs-
16 green New York on-bill recovery charge or another form of on-bill
17 financing". Such notice shall also state the total amount of the
18 original charge, the payment schedule and the approximate remaining
19 balance, a description of the energy efficiency services performed,
20 including improvements to the property, [and] an explanation of the
21 benefit of the [green jobs-green New York qualified] energy efficiency
22 services, and whether such on-bill financing will continue after the
23 sale is complete or if the seller will pay off any remaining balance.
24 Such notice shall be provided by the seller prior to accepting a
25 purchase offer.
26 (b) Any prospective or actual purchaser who has suffered a loss due to
27 a violation of this subdivision is entitled to recover any actual
28 damages incurred from the person offering to sell or selling said real
29 property.
30 § 5. This act shall take effect on the first of January next succeed-
31 ing the date on which it shall have become a law. Effective immediately,
32 the addition, amendment and/or repeal of any rule or regulation neces-
33 sary for the implementation of this act on its effective date are
34 authorized to be made and completed on or before such effective date.