Amd Art 5-L Head, SS119-ee, 119-ff & 119-gg, Gen Muni L
 
Provides for a municipal sustainable energy financing program; changes municipal sustainable energy loan program; promote the deployment of renewable energy systems and energy efficiency measures throughout the state.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A11243
SPONSOR: Castelli
 
TITLE OF BILL: An act to amend the general municipal law, in relation
to the municipal sustainable energy financing program
 
PURPOSE: Municipal sustainable energy financing program.
 
SUMMARY OF PROVISIONS: Section 1; The article heading of article 5-L
of the general municipal law is revised to "Municipal Sustainable Energy
Financing Program," replacing the word "loan" with "financing."
Section 2: Section 119-ee of the general municipal law is amended to
expand the legislative findings and declaration to more fully describe
the public purposes that will be fulfilled by establishing Municipal
Sustainable Energy Financing Programs including the development of new
industries and new jobs; fostering a cleaner environment; helping to
avoid future energy shortages; and enabling the state and municipal
corporations to reduce its reliance on sources of energy that have a
negative impact on air quality, thereby contributing to the health and
well-being of the people of the state; and to declare that it is neces-
sary for the Authority and municipal corporations to play a critical
role in providing cost-effective financing for the large-scale installa-
tion of renewable energy systems and energy efficiency measures.
Section 3: Section 119-ff of the general municipal law is amended to'
add definitions for the following terms: assessment district and govern-
ing body, energy efficiency improvement as it applies to one to four
family residential properties
Section 4: Section 119-gg of the general municipal law is amended to
expand the permissible funding sources for sustainable energy financing
programs established by municipal corporations having the power to
enforce delinquent tax liens; to permit the Authority to enter into
contracts with municipal corporations with mutually determined terms and
conditions allows municipal corporations to enter into such other
contracts with third parties as may be necessary or appropriate to
implement their sustainable energy financing programs; to permit cities
with populations of one million persons or more to establish their own
lists of cost effective energy efficiency improvements, for different
building types; to permit cities with populations of one million persons
or more to establish their own systems for verifying the installation
and performance of renewable energy systems and energy efficiency
improvements financed by their sustainable energy financing programs; to
replace the term "appraised real property value" with the term "fair
market value of the real property, as determined by the municipal corpo-
ration;" and to clarify that municipal corporations are authorized 'to
assess real property located within their jurisdictions benefited by
improvements financed by their respective sustainable energy financing
programs. Also allows any county, town, city or village to enter into
agreements with a municipal corporation and/or the Authority relating to
the administrative functions of a sustainable energy financing program,
including incorporating assessment charges on tax bills, determining
fair market values, providing notifications when such assessments have
not been paid and collecting unpaid assessments. New subparagraphs 10,
11 and 12 are added to provide an appropriate procedural mechanism for
municipal corporations to follow in order to establish assessment
districts in connection with sustainable energy financing programs; to
ensure that participation in any sustainable energy financing district
is entirely voluntary on the part of property Owners; and to clarify
that nothing in Article S-L shall prevent a town from electing to
proceed with any program under Section 209-i of the Town Law, respec-
tively.
Section 5: States the effective date.
 
JUSTIFICATION:; To address the issue of global climate change and
greenhouse gas emissions in the town of Bedford, the town embarked on an
effort to reduce energy demand from existing buildings to allow the town
to meet statewide energy efficiency goals.
To assist residents and businesses within the town by making energy
efficiency improvements more affordable and to promote the installation
and utilization of these improvements, it became necessary to create a
program to help finance the cost of these energy efficiency improvements
which was adopted by the Legislature in May of 2009.
In November 2049 the legislature passed S66004A/A44004A, which allows
municipalities to establish sustainable energy financing programs using
a Federal grant opportunity.
In April 2010 the United States Department .of Energy (DOE) awarded $40
million to a joint application submitted by the Authority, New York City
and the Town of Bedford, to create sustainable energy financing
programs. This single award was the largest of any application for this
pool of DOE funds in the nation.
Given the small window of time allocated in the existing legislation,
the Governor's office and the legislature were unable to fully consider
alternative sustainable energy financing mechanisms. As a result the
existing statute limits available funding sources for these municipal
loan programs only to federal grants or federal credit support. Thus.,
the existing statute must be amended to expand permissible funding
sources for sustainable energy financing programs beyond federal assist-
ance or credit Support.
The DOE funding opportunity required applicants to commit to leverage
any federal funds awarded under the grant program at least 5:1 with
funding from other sources. The NYSERDA/NYC/Town of Bedford application
proposed to comply with that leverage requirement through the use of
private capital and funds available under the Green Jobs Green New York
program.
Unless the existing legislation is amended to expand funding sources
programs established by the NYSERDA, New York City and Bedford grant may
not be able to comply with the leverage requirements of the DOE grant
program.
Also an important procedural mechanism included established clean energy
assessment districts under this legislation. This will provide munici-
palities with a clear process to follow in setting up their programs by
providing the public with notice, an opportunity to participate in the
process, and ensure that participation remains entirely voluntary for
property owners.
Many cities, towns, villages and counties across New York State are very
excited about establishing sustainable energy financing programs to
finance clean energy retrofits in their communities, but their hands are
tied by the existing legislation's restriction of funding sources to
federal grants or credit support.
The existing legislation must be amended to allow municipalities across
the New York state to move forward using funding from NYSERDA and other
appropriate sources to create sustainable energy financing programs.
 
FISCAL IMPLICATIONS: None to the State.
 
EFFECTIVE DATE:; This act shall take effect immediately.