STATE OF NEW YORK
________________________________________________________________________
6331
2019-2020 Regular Sessions
IN SENATE
June 5, 2019
___________
Introduced by Sen. PARKER -- (at request of the Energy Research Develop-
ment Authority) -- read twice and ordered printed, and when printed to
be committed to the Committee on Rules
AN ACT to amend the public authorities law, the public service law and
the real property law, in relation to the green jobs-green New York
on-bill energy efficiency payment program
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraph (a) of subdivision 5 of section 1896 of the
2 public authorities law, as added by section 1 of part DD of chapter 58
3 of the laws of 2012, is amended to read as follows:
4 (a) For each loan issued for qualified energy efficiency services that
5 is to be repaid through an on-bill recovery mechanism[, the New York
6 state energy research and development authority shall record, pursuant
7 to article nine of the real property law, in the office of the appropri-
8 ate recording officer, a declaration with respect to the property
9 improved by such services of the existence of the loan and stating the
10 total amount of the loan, the term of the loan, and that the loan is
11 being repaid] through a charge on an electric or gas meter associated
12 with the property, the on-bill recovery loan agreement shall allow for
13 the purchaser or transferee to agree through written express assumption
14 provided in accordance with the terms of the on-bill recovery loan that
15 he or she is responsible for future on-bill recovery charges, and in the
16 absence of such written express assumption, the original seller,
17 transferor, or current loan holder of the subject property shall contin-
18 ue to be responsible for payment of such remaining charges through
19 direct billing and payment to the New York state energy research and
20 development authority, or its agent. [The declaration shall further
21 state that it is being filed pursuant to this section and, unless fully
22 satisfied prior to sale or transfer of the property, the loan repayment
23 utility meter charge shall survive changes in ownership, tenancy, or
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD09105-02-9
S. 6331 2
1 meter account responsibility and, until fully satisfied, shall consti-
2 tute the obligation of the person responsible for the meter account.
3 Such declaration shall not constitute a mortgage and shall not create
4 any security interest or lien on the property. Upon satisfaction of the
5 loan, the authority shall file a declaration of repayment pursuant to
6 article nine of the real property law.]
7 § 2. Paragraph (d) of subdivision 2 of section 66-m of the public
8 service law, as added by chapter 388 of the laws of 2011, is amended to
9 read as follows:
10 (d) unless fully satisfied prior to sale or transfer, that (i) the
11 on-bill recovery charges for any services provided at the customer's
12 premises shall survive changes in ownership, tenancy or meter account
13 responsibility if the New York state energy research and development
14 authority shall have recorded a declaration pursuant to article nine of
15 the real property law with respect to such property for the existence of
16 an on-bill recovery loan, and (ii) that arrears in on-bill recovery
17 charges at the time of account closure or meter transfer shall remain
18 the responsibility of the incurring customer, unless expressly assumed
19 by a subsequent purchaser of the property subject to such charges;
20 § 3. Paragraph (a) of subdivision 4 of section 242 of the real proper-
21 ty law, as added by chapter 388 of the laws of 2011, is amended to read
22 as follows:
23 (a) Any person, firm, company, partnership or corporation offering to
24 sell real property which is subject to a green jobs-green New York
25 on-bill recovery charge pursuant to title nine-A of article eight of the
26 public authorities law and which provides that such charge shall survive
27 changes in ownership, tenancy or meter account responsibility if not
28 fully satisfied prior to sale or transfer, shall provide written notice
29 to the prospective purchaser or the prospective purchaser's agent, stat-
30 ing as follows: "This property is subject to a green jobs-green New York
31 on-bill recovery charge". Such notice shall also state the total amount
32 of the original charge, the payment schedule and the approximate remain-
33 ing balance, a description of the energy efficiency services performed,
34 including improvements to the property, and an explanation of the bene-
35 fit of the green jobs-green New York qualified energy efficiency
36 services. Such notice shall be provided by the seller prior to accepting
37 a purchase offer; provided that such notice is not necessary if the loan
38 agreement provides that upon sale or transfer of the subject property
39 the purchaser or transferee is only responsible for on-bill recovery
40 charges after sale or transfer if he or she agrees through written
41 express assumption provided in accordance with the terms of the on-bill
42 recovery loan agreement, and in the absence of such assumption, the
43 original seller, transfer, or current loan holder of the subject proper-
44 ty shall be responsible for payment of such remaining charges through
45 direct billing and payment to the New York state energy research and
46 development authority, or its agent.
47 § 4. This act shall take effect on the thirtieth day after it shall
48 have become a law and shall apply to any eligible applications on or
49 after such date.