S T A T E   O F   N E W   Y O R K
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                                  7006

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                              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:

  Section 1. Subdivision 2 of section 18-a of the public service law  is
amended by adding a new paragraph (h) to read as follows:
  (H) ON-BILL RECOVERY CHARGES BILLED PURSUANT TO SECTION SIXTY-SIX-M OF
THIS  CHAPTER  SHALL  BE  EXCLUDED FROM ANY DETERMINATION OF AN ENTITY'S
GROSS OPERATING REVENUES DERIVED FROM INTRASTATE UTILITY OPERATIONS  FOR
PURPOSES OF THIS SECTION.
  S  2.  Section 42 of the public service law is amended by adding a new
subdivision 3 to read as follows:
  3. THE RIGHTS AND RESPONSIBILITIES OF  RESIDENTIAL  CUSTOMERS  PARTIC-
IPATING  IN  GREEN  JOBS-GREEN  NEW  YORK  ON-BILL  RECOVERY PURSUANT TO
SECTION SIXTY-SIX-M OF THIS CHAPTER SHALL BE SUBSTANTIALLY COMPARABLE TO
THOSE OF GAS AND ELECTRIC CUSTOMERS NOT PARTICIPATING  IN  SUCH  ON-BILL
RECOVERY,  AND  CHARGES FOR ON-BILL RECOVERY SHALL BE TREATED AS CHARGES
FOR UTILITY SERVICE FOR THE PURPOSE OF THIS ARTICLE, PROVIDED THAT:
  (A) ALL DETERMINATIONS AND SAFEGUARDS RELATED TO THE  TERMINATION  AND
RECONNECTION  OF  SERVICE SHALL APPLY TO ON-BILL RECOVERY CHARGES BILLED
BY A UTILITY PURSUANT TO SUCH SECTION;
  (B) IN THE EVENT THAT THE RESPONSIBILITY FOR MAKING  UTILITY  PAYMENTS
HAS BEEN ASSUMED BY OCCUPANTS OF A MULTIPLE DWELLING PURSUANT TO SECTION
THIRTY-THREE  OF  THIS  ARTICLE OR BY OCCUPANTS OF A TWO-FAMILY DWELLING
PURSUANT TO SECTION THIRTY-FOUR OF THIS ARTICLE,  SUCH  OCCUPANTS  SHALL
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

PROSPECTIVE ON-BILL RECOVERY CHARGES, WHICH SHALL REMAIN  THE  RESPONSI-
BILITY OF THE INCURRING CUSTOMER;
  (C)  DEFERRED  PAYMENT  AGREEMENTS PURSUANT TO SECTION THIRTY-SEVEN OF
THIS ARTICLE SHALL BE AVAILABLE TO CUSTOMERS  PARTICIPATING  IN  ON-BILL
RECOVERY  ON  THE  SAME  TERMS AS OTHER CUSTOMERS, AND THE UTILITY SHALL
RETAIN THE SAME DISCRETION TO DEFER TERMINATION OF SERVICE  AS  FOR  ANY
OTHER DELINQUENT CUSTOMER;
  (D)  WHERE  A  CUSTOMER HAS A BUDGET BILLING PLAN OR LEVELIZED PAYMENT
PLAN PURSUANT TO SECTION THIRTY-EIGHT OF THIS ARTICLE, THE UTILITY SHALL
RECALCULATE THE PAYMENTS  UNDER  SUCH  PLAN  TO  REFLECT  THE  PROJECTED
EFFECTS  OF INSTALLING ENERGY EFFICIENCY MEASURES AS SOON AS PRACTICABLE
AFTER RECEIPT OF INFORMATION ON THE ENERGY AUDIT  AND  QUALIFIED  ENERGY
EFFICIENCY SERVICES SELECTED;
  (E) ON-BILL RECOVERY CHARGES SHALL NOT BE SUBJECT TO THE PROVISIONS OF
SECTION FORTY-ONE OF THIS ARTICLE;
  (F)  LATE  PAYMENT CHARGES ON UNPAID ON-BILL RECOVERY CHARGES SHALL BE
DETERMINED AS PROVIDED IN THIS SECTION, AND ANY SUCH  CHARGES  SHALL  BE
REMITTED  TO THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORI-
TY;
  (G) NOTWITHSTANDING THE PROVISIONS  OF  SECTION  FORTY-THREE  OF  THIS
ARTICLE,  WHEN A COMPLAINT IS RELATED SOLELY TO WORK PERFORMED UNDER THE
GREEN JOBS-GREEN NEW YORK  PROGRAM  OR  TO  THE  APPROPRIATE  AMOUNT  OF
ON-BILL  RECOVERY  CHARGES, THE UTILITY SHALL ONLY BE REQUIRED TO INFORM
THE CUSTOMER OF THE COMPLAINT HANDLING PROCEDURES OF THE NEW YORK  STATE
ENERGY  RESEARCH AND DEVELOPMENT AUTHORITY, WHICH SHALL RETAIN RESPONSI-
BILITY FOR HANDLING SUCH COMPLAINTS, AND SUCH COMPLAINTS  SHALL  NOT  BE
DEEMED  TO  BE  COMPLAINTS ABOUT UTILITY SERVICE IN ANY OTHER COMMISSION
ACTION OR PROCEEDING; AND
  (H) BILLING INFORMATION PROVIDED PURSUANT  TO  SECTION  FORTY-FOUR  OF
THIS  ARTICLE  SHALL  INCLUDE  INFORMATION  ON GREEN JOBS-GREEN NEW YORK
ON-BILL RECOVERY CHARGES, INCLUDING THE BASIS FOR SUCH CHARGES, AND  ANY
INFORMATION  OR  INSERTS  PROVIDED BY THE NEW YORK STATE ENERGY RESEARCH
AND DEVELOPMENT AUTHORITY RELATED THERETO.  IN ADDITION, AT LEAST  ANNU-
ALLY THE AUTHORITY SHALL PROVIDE THE UTILITY WITH INFORMATION FOR INCLU-
SION  OR INSERTION IN THE CUSTOMER'S BILL THAT SETS FORTH THE AMOUNT AND
DURATION OF REMAINING  ON-BILL  RECOVERY  CHARGES  AND  THE  AUTHORITY'S
CONTACT  INFORMATION  AND  PROCEDURES  FOR RESOLVING CUSTOMER COMPLAINTS
WITH SUCH CHARGES.
  S 3. Paragraph (d) of subdivision  6  of  section  65  of  the  public
service  law, as added by chapter 204 of the laws of 2010, is amended to
read as follows:
  (d) for installation of capital improvements and fixtures  to  promote
energy  efficiency upon the request and consent of the customer, INCLUD-
ING BUT NOT LIMITED TO THE PERFORMANCE OF  QUALIFIED  ENERGY  EFFICIENCY
SERVICES  FOR  CUSTOMERS  PARTICIPATING  IN  GREEN  JOBS-GREEN  NEW YORK
ON-BILL RECOVERY PURSUANT TO SECTION SIXTY-SIX-M OF THIS ARTICLE.
  S 4. The public service law is amended by adding a new section 66-m to
read as follows:
  S 66-M. GREEN JOBS-GREEN NEW  YORK  ON-BILL  RECOVERY.    1.  (A)  THE
COMMISSION  SHALL  REQUIRE  EACH  GAS  AND  ELECTRIC CORPORATION TO 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 NEW YORK REVOLVING LOAN FUND ESTABLISHED  PURSUANT  TO  TITLE
NINE-A  OF  ARTICLE  EIGHT  OF THE PUBLIC AUTHORITIES LAW. TO THE EXTENT
PRACTICABLE, GAS AND ELECTRIC CORPORATIONS SHALL UTILIZE EXISTING  ELEC-
TRONIC DATA INTERCHANGE INFRASTRUCTURE OR OTHER EXISTING BILLING INFRAS-

A. 7006                             3

TRUCTURE  TO  IMPLEMENT  THEIR  BILLING  AND COLLECTION RESPONSIBILITIES
UNDER THIS SECTION. TO THE MAXIMUM EXTENT PRACTICABLE, ELECTRIC AND  GAS
CORPORATIONS  SHALL  UTILIZE  FUNDING  AVAILABLE FROM THE NEW YORK STATE
ENERGY RESEARCH AND DEVELOPMENT AUTHORITY TO DEFRAY ANY COSTS ASSOCIATED
WITH ELECTRONIC DATA INTERCHANGE IMPROVEMENTS OR OTHER COSTS OF INITIAT-
ING  AND  IMPLEMENTING  THIS PROGRAM. WITHIN SIXTY DAYS OF THE EFFECTIVE
DATE OF THIS SECTION, THE COMMISSION SHALL REQUIRE ALL ELECTRIC AND  GAS
CORPORATIONS  TO  FILE  TARIFFS  TO  IMPLEMENT  BILLING  AND  COLLECTION
SERVICES FOR GREEN JOBS-GREEN NEW YORK  RECOVERY  CHARGES  FOR  ELIGIBLE
CUSTOMERS  WITHIN  THEIR  SERVICE  TERRITORIES. WITHIN ONE HUNDRED FIFTY
DAYS OF THE EFFECTIVE DATE OF  THIS  SECTION  AND  CONSISTENT  WITH  THE
REQUIREMENTS  OF  THE STATE ADMINISTRATIVE PROCEDURE ACT, THE COMMISSION
SHALL TAKE FINAL ACTION ON SUCH TARIFFS AND SHALL PROVIDE  THAT  BILLING
AND  COLLECTION  SERVICES  UNDER  SUCH TARIFFS SHALL COMMENCE AS SOON AS
PRACTICABLE THEREAFTER.
  (B) TO ENSURE PROPER PROGRAM DESIGN AND IMPLEMENTATION, EACH  ELECTRIC
AND  GAS  CORPORATION  SHALL INITIALLY LIMIT THE NUMBER OF CUSTOMERS WHO
PAY A GREEN JOBS-GREEN NEW YORK ON-BILL RECOVERY  CHARGE  AT  ANY  GIVEN
TIME  TO  NO  MORE THAN THREE PERCENT OF ITS TOTAL CUSTOMERS, ON A FIRST
COME, FIRST SERVED BASIS. PRIOR TO REACHING SUCH  LIMIT,  THE  NEW  YORK
STATE  ENERGY  RESEARCH  AND  DEVELOPMENT  AUTHORITY  SHALL PETITION THE
COMMISSION TO REVIEW SAID LIMIT, AND THE COMMISSION SHALL INCREASE  SUCH
LIMIT  UNLESS  THE  COMMISSION FINDS THAT THE PROGRAM HAS CAUSED SIGNIF-
ICANT HARM TO THE ELECTRIC OR GAS COMPANY OR ITS RATEPAYERS.
  (C) THE COMMISSION MAY SUSPEND AN ELECTRIC OR GAS CORPORATION'S  OFFER
OF  THE  ON-BILL  RECOVERY  CHARGE  PROVIDED  THAT THE COMMISSION, AFTER
CONDUCTING A HEARING AS PROVIDED IN  SECTION  TWENTY  OF  THIS  CHAPTER,
MAKES  A  FINDING  THAT:  (I) THERE IS A SIGNIFICANT INCREASE IN UTILITY
SERVICE ARREARS OR DISCONNECTIONS  THAT  THE  COMMISSION  DETERMINES  IS
DIRECTLY  RELATED  TO  THE  ON-BILL  RECOVERY CHARGE, OR (II) OTHER GOOD
CAUSE.
  (D) THE ON-BILL RECOVERY CHARGE SHALL BE COLLECTED ON  THE  BILL  FROM
THE  CUSTOMER'S  ELECTRIC  CORPORATION UNLESS THE QUALIFIED ENERGY EFFI-
CIENCY SERVICES AT THAT CUSTOMER'S PREMISES  RESULT  IN  MORE  PROJECTED
ENERGY  SAVINGS  ON  THE  CUSTOMER'S GAS BILL THAN THE ELECTRIC BILL, IN
WHICH CASE THE ON-BILL RECOVERY CHARGE SHALL BE COLLECTED ON THE CUSTOM-
ER'S GAS CORPORATION BILL.
  2. TARIFFS FOR THE COLLECTION AND BILLING OF ON-BILL RECOVERY  CHARGES
SHALL PROVIDE:
  (A) THAT BILLING AND COLLECTION SERVICES SHALL BE AVAILABLE TO CUSTOM-
ERS  WHO HAVE MET THE STANDARDS ESTABLISHED BY THE NEW YORK STATE ENERGY
RESEARCH AND DEVELOPMENT AUTHORITY  FOR  PARTICIPATION  IN  THE  ON-BILL
RECOVERY  MECHANISM UNDER THE GREEN JOBS-GREEN NEW YORK PROGRAM AND HAVE
EXECUTED AN AGREEMENT FOR THE PERFORMANCE OF QUALIFIED ENERGY EFFICIENCY
SERVICES UNDER SUCH PROGRAM; PROVIDED,  HOWEVER,  THAT  FOR  RESIDENTIAL
PROPERTIES  ANY  SUCH  CUSTOMER MUST HOLD PRIMARY OWNERSHIP OR REPRESENT
THE PRIMARY OWNER OR OWNERS OF  THE  PREMISES  AND  HOLD  PRIMARY  METER
ACCOUNT  RESPONSIBILITY  OR  REPRESENT  THE PRIMARY HOLDER OR HOLDERS OF
METER ACCOUNT RESPONSIBILITY FOR ALL METERS TO WHICH SUCH ON-BILL RECOV-
ERY CHARGES WILL APPLY;
  (B) THAT THE RESPONSIBILITIES OF THE ELECTRIC OR GAS  CORPORATION  ARE
LIMITED  TO PROVIDING BILLING AND COLLECTION SERVICES FOR ON-BILL RECOV-
ERY CHARGES AS DIRECTED BY THE AUTHORITY;
  (C) THAT THE RIGHTS  AND  RESPONSIBILITIES  OF  RESIDENTIAL  CUSTOMERS
PAYING  ON-BILL  RECOVERY CHARGES SHALL BE GOVERNED BY THE PROVISIONS OF
ARTICLE TWO OF THIS CHAPTER;

A. 7006                             4

  (D) UNLESS FULLY SATISFIED PRIOR TO SALE OR  TRANSFER,  THAT  (I)  THE
ON-BILL  RECOVERY  CHARGES  FOR  ANY SERVICES PROVIDED AT THE CUSTOMER'S
PREMISES SHALL SURVIVE CHANGES IN OWNERSHIP, TENANCY  OR  METER  ACCOUNT
RESPONSIBILITY, AND (II) THAT ARREARS IN ON-BILL RECOVERY CHARGES AT THE
TIME  OF ACCOUNT CLOSURE OR METER TRANSFER SHALL REMAIN THE RESPONSIBIL-
ITY OF THE INCURRING CUSTOMER, UNLESS EXPRESSLY ASSUMED BY A  SUBSEQUENT
PURCHASER OF THE PROPERTY SUBJECT TO SUCH ON-BILL RECOVERY CHARGES;
  (E)  THAT  UNDERPAYMENTS  OF  BILLS SHALL BE ALLOCATED BETWEEN ON-BILL
RECOVERY CHARGES AND OTHER CHARGES IN THE SAME PROPORTION  SUCH  CHARGES
COMPRISE OF THE OVERALL BILL TOTAL;
  (F)  BILLING AND COLLECTION SERVICES SHALL BE AVAILABLE WITHOUT REGARD
TO WHETHER THE ENERGY OR FUEL DELIVERED BY THE UTILITY IS THE CUSTOMER'S
PRIMARY ENERGY SOURCE;
  (G) UNLESS OTHERWISE PRECLUDED BY  LAW,  PARTICIPATION  IN  THE  GREEN
JOBS-GREEN  NEW  YORK  PROGRAM SHALL NOT AFFECT A CUSTOMER'S ELIGIBILITY
FOR ANY REBATE OR INCENTIVE OFFERED BY A UTILITY; AND
  (H) ANY OTHER PROVISIONS NECESSARY TO  PROVIDE  FOR  THE  BILLING  AND
COLLECTION OF ON-BILL RECOVERY CHARGES.
  3. THE COMMISSION SHALL NOT APPROVE ANY APPLICATION FOR THE CONVERSION
TO  SUBMETERING  OF  ANY  MASTER  METER  WHICH IS SUBJECT TO ANY ON-BILL
RECOVERY CHARGES.
  S 5. Sections 1020-hh, 1020-ii and 1020-jj of the  public  authorities
law,  as  renumbered  by chapter 433 of the laws of 2009, are renumbered
sections 1020-ii, 1020-jj and 1020-kk and a new section 1020-hh is added
to read as follows:
  S 1020-HH.  GREEN JOBS-GREEN NEW YORK ON-BILL RECOVERY. 1.  WITHIN ONE
HUNDRED FIFTY DAYS OF THE EFFECTIVE DATE OF THIS SECTION, THE  AUTHORITY
SHALL  ESTABLISH  A PROGRAM TO PROVIDE FOR THE BILLING AND COLLECTION OF
ON-BILL RECOVERY CHARGES FOR PAYMENT OF OBLIGATIONS OF ITS CUSTOMERS  TO
THE  GREEN  JOBS-GREEN NEW YORK REVOLVING LOAN FUND ESTABLISHED PURSUANT
TO TITLE NINE-A OF ARTICLE EIGHT OF THIS CHAPTER. SUCH PROGRAM SHALL  BE
CONSISTENT  WITH THE STANDARDS SET FORTH IN SUBDIVISION THREE OF SECTION
FORTY-TWO AND SECTION SIXTY-SIX-M OF THE  PUBLIC  SERVICE  LAW.  TO  THE
MAXIMUM  EXTENT  PRACTICABLE,  FUNDING AVAILABLE FROM THE NEW YORK STATE
ENERGY RESEARCH AND DEVELOPMENT AUTHORITY SHALL BE  UTILIZED  TO  DEFRAY
ANY  COSTS  ASSOCIATED  WITH ELECTRONIC DATA INTERCHANGE IMPROVEMENTS OR
OTHER COSTS OF INITIATING AND IMPLEMENTING THIS PROGRAM.    BILLING  AND
COLLECTION SERVICES UNDER SUCH TARIFFS SHALL COMMENCE AS SOON AS PRACTI-
CABLE AFTER ESTABLISHMENT OF THE PROGRAM.
  2.  THE  AUTHORITY  MAY  SUSPEND  ITS OFFERING OF THE ON-BILL RECOVERY
CHARGE PROVIDED THAT, AFTER CONDUCTING A PUBLIC HEARING,  THE  AUTHORITY
MAKES  A FINDING THAT THERE IS A SIGNIFICANT INCREASE IN UTILITY SERVICE
ARREARS OR DISCONNECTIONS THAT  THE  AUTHORITY  DETERMINES  IS  DIRECTLY
RELATED  TO  THE  ON-BILL  RECOVERY  CHARGE,  OR A FINDING OF OTHER GOOD
CAUSE.
  S 6. Section 1896 of the public authorities law, as added  by  chapter
487 of the laws of 2009, is amended to read as follows:
  S 1896. Green jobs-green New York revolving loan fund. 1. (a) There is
hereby  created  a  green  jobs-green  New York revolving loan fund. The
revolving loan fund shall consist of:
  (i) all moneys made available for the purpose of  the  revolving  loan
fund pursuant to section eighteen hundred ninety-nine-a of this title;
  (ii)  payments  of  principal and interest, INCLUDING ANY LATE PAYMENT
CHARGES, made pursuant to loan or financing agreements entered into with
the authority or its designee pursuant to this section; and

A. 7006                             5

  (iii) any interest earned by the investment of moneys in the revolving
loan fund.
  (b) The revolving loan fund shall consist of two accounts:
  (i) one account which shall be maintained for monies to be made avail-
able  to  provide loans to finance the cost of approved qualified energy
efficiency services for residential structures and  multi-family  struc-
tures, and
  (ii)  one  account which shall be maintained for monies made available
to provide loans to finance the cost of approved qualified energy  effi-
ciency  services  for non-residential structures. The initial balance of
the residential account established in [clause] SUBPARAGRAPH (i) of this
paragraph shall represent at least fifty percent of the total balance of
the two accounts. The authority shall not commingle the  monies  of  the
revolving  loan  fund  with any other monies of the authority or held by
the authority, nor shall the  authority  commingle  the  monies  between
accounts.  Payments  of  principal, interest and fees shall be deposited
into the account created and maintained  for  the  appropriate  type  of
eligible project.
  (c)  In  administering  such  program, the authority is authorized and
directed to:
  (i) use monies made available for the revolving loan fund  to  achieve
the  purposes  of this section by section eighteen hundred ninety-nine-a
of this title, including but not limited to making loans  available  for
eligible projects;
  (ii)  enter  into  contracts  with one or more program implementers to
perform such functions as the authority deems appropriate; [and]
  (iii) ESTABLISH AN ON-BILL RECOVERY MECHANISM FOR REPAYMENT  OF  LOANS
FOR THE PERFORMANCE OF QUALIFIED ENERGY EFFICIENCY SERVICES FOR ELIGIBLE
PROJECTS  IN THE FORM OF A CHARGE APPEARING ON THE PARTICIPATING CUSTOM-
ER'S UTILITY BILL PROVIDED THAT SUCH ON-BILL  RECOVERY  MECHANISM  SHALL
PROVIDE FOR THE UTILIZATION OF ANY ON-BILL RECOVERY PROGRAMS ESTABLISHED
PURSUANT  TO  SECTION  SIXTY-SIX-M OF THE PUBLIC SERVICE LAW AND SECTION
ONE THOUSAND TWENTY-HH OF THIS CHAPTER;
  (IV) ESTABLISH STANDARDS FOR CUSTOMER PARTICIPATION  IN  SUCH  ON-BILL
RECOVERY  MECHANISM,  INCLUDING  STANDARDS  FOR  RELIABLE  UTILITY  BILL
PAYMENT, CURRENT GOOD STANDING ON ANY MORTGAGE OBLIGATIONS,  ALTERNATIVE
MEASURES  OF  CREDIT  WORTHINESS  AND  SUCH  ADDITIONAL STANDARDS AS THE
AUTHORITY DEEMS NECESSARY; PROVIDED  THAT  IN  ORDER  TO  PROVIDE  BROAD
ACCESS TO ON-BILL RECOVERY, THE AUTHORITY SHALL INCLUDE PARTICIPATION BY
CUSTOMERS  WHO  ARE LESS LIKELY TO HAVE ACCESS TO TRADITIONAL SOURCES OF
FINANCING; AND
  (V) exercise such other powers as are necessary for the proper  admin-
istration  of the program, INCLUDING AT THE DISCRETION OF THE AUTHORITY,
ENTERING INTO AGREEMENTS WITH APPLICANTS AND WITH SUCH STATE OR  FEDERAL
AGENCIES  AS  NECESSARY TO DIRECTLY RECEIVE REBATES AND GRANTS AVAILABLE
FOR ELIGIBLE PROJECTS AND APPLY SUCH FUNDS  TO  REPAYMENT  OF  APPLICANT
LOAN OBLIGATIONS.
  2. (a) The authority shall provide financial assistance in the form of
loans  for  the  performance of qualified energy efficiency services for
eligible projects on terms and conditions established by the authority.
  (b) Loans made by the authority pursuant  to  this  section  shall  be
subject to the following limitations:
  (i)  eligible  projects shall meet cost effectiveness standards devel-
oped by the authority;
  (ii) loans shall not exceed thirteen thousand  dollars  per  applicant
for approved qualified energy efficiency services for residential struc-

A. 7006                             6

tures, and twenty-six thousand dollars per applicant for approved quali-
fied   energy   efficiency   services  for  non-residential  structures,
PROVIDED, HOWEVER, THAT THE AUTHORITY MAY PERMIT A  LOAN  IN  EXCESS  OF
SUCH AMOUNTS IF THE TOTAL COST OF ENERGY EFFICIENCY MEASURES FINANCED BY
SUCH LOAN WILL ACHIEVE A PAYBACK PERIOD OF FIFTEEN YEARS OR LESS, BUT IN
NO  EVENT  SHALL  ANY  SUCH LOAN EXCEED TWENTY-FIVE THOUSAND DOLLARS PER
APPLICANT FOR RESIDENTIAL STRUCTURES  AND  FIFTY  THOUSAND  DOLLARS  PER
APPLICANT  FOR  NON-RESIDENTIAL  STRUCTURES; and for multi-family struc-
tures loans shall be in amounts determined by the  authority,  provided,
however,  that  the  authority shall assure that a significant number of
residential structures are included in the program; [and]
  (iii) NO FEES OR PENALTIES SHALL BE CHARGED OR COLLECTED  FOR  PREPAY-
MENT OF ANY SUCH LOAN; AND
  (IV)  loans  shall be at interest rates determined by the authority to
be no higher than necessary to make the provision of the qualified ener-
gy efficiency services feasible.
  In determining whether to make a loan, and the amount of any loan that
is made, the authority is authorized to consider whether  the  applicant
or  borrower  has received, or is eligible to receive, financial assist-
ance and other incentives from any other source for the qualified energy
efficiency services which would be the subject of the loan.   IN  DETER-
MINING  WHETHER A LOAN WILL ACHIEVE A PAYBACK PERIOD OF FIFTEEN YEARS OR
LESS PURSUANT TO SUBPARAGRAPH (II) OF THIS PARAGRAPH, THE AUTHORITY  MAY
CONSIDER  THE  AMOUNT  OF  THE  LOAN  TO BE REDUCED BY THE AMOUNT OF ANY
REBATES FOR QUALIFIED ENERGY EFFICIENCY SERVICES RECEIVED BY THE  APPLI-
CANT OR BY THE AUTHORITY ON BEHALF OF AN APPLICANT.
  (c)  Applications  for  financial  assistance pursuant to this section
shall be reviewed and evaluated by the authority or its designee  pursu-
ant  to  eligibility  and qualification requirements and criteria estab-
lished by the authority. The authority shall establish standards for (i)
qualified energy efficiency services, and (ii) measurement and verifica-
tion of energy savings. Such standards shall meet or exceed  the  stand-
ards  used  by  the  authority  for similar programs in existence on the
effective date of this section.
  (d) The amount of a fee  paid  for  an  energy  audit  provided  under
section  eighteen  hundred ninety-five of this title may be added to the
amount of a loan that is made under this section to finance the cost  of
an  eligible project conducted in response to such energy audit. In such
a case, the amount of the fee may be reimbursed from  the  fund  to  the
borrower.
  (E) IN ESTABLISHING AN ON-BILL RECOVERY MECHANISM:
  (I)  THE  COST-EFFECTIVENESS OF AN ELIGIBLE PROJECT SHALL BE EVALUATED
SOLELY ON THE BASIS OF THE COSTS AND PROJECTED SAVINGS TO  THE  APPLYING
CUSTOMER,  USING STANDARD ENGINEERING ASSESSMENTS AND PRIOR BILLING DATA
AND USAGE PATTERNS; PROVIDED HOWEVER THAT BASED  UPON  THE  MOST  RECENT
CUSTOMER  DATA  AVAILABLE,  ON  AN ANNUALIZED BASIS, THE MONTHLY ON-BILL
REPAYMENT AMOUNT FOR A PACKAGE OF MEASURES SHALL NOT EXCEED  ONE-TWELFTH
OF THE SAVINGS PROJECTED TO RESULT FROM THE INSTALLATION OF THE MEASURES
PROVIDED  FURTHER  THAT NOTHING HEREIN SHALL BE CONSTRUED TO PROHIBIT OR
PREVENT CUSTOMERS WHOSE PRIMARY HEATING ENERGY SOURCE IS FROM  DELIVERA-
BLE FUELS FROM PARTICIPATING IN THE PROGRAM;
  (II)  THE  AUTHORITY  SHALL ESTABLISH A PROCESS FOR RECEIPT AND RESOL-
UTION OF CUSTOMER COMPLAINTS CONCERNING ON-BILL RECOVERY CHARGES AND FOR
ADDRESSING DELAYS AND DEFAULTS IN CUSTOMER PAYMENTS; AND
  (III) THE AUTHORITY MAY LIMIT THE AVAILABILITY OF LIGHTING MEASURES OR
HOUSEHOLD APPLIANCES THAT ARE NOT PERMANENTLY AFFIXED TO REAL PROPERTY.

A. 7006                             7

  3. THE AUTHORITY SHALL EVALUATE THE COST-EFFECTIVENESS OF THE  ON-BILL
RECOVERY  MECHANISM ON AN ON-GOING BASIS.  (A) IN CONDUCTING SUCH EVALU-
ATION, THE AUTHORITY SHALL REQUEST EACH CUSTOMER TO PROVIDE:
  (I)  INFORMATION ON ENERGY USAGE AND/OR PERMISSION TO COLLECT INFORMA-
TION ON ENERGY USAGE FROM UTILITIES AND OTHER RETAIL VENDORS,  INCLUDING
BUT  NOT  LIMITED  TO  INFORMATION REQUIRED TO BE FURNISHED TO CONSUMERS
UNDER ARTICLE SEVENTEEN OF THE ENERGY LAW;
  (II) INFORMATION ON OTHER SOURCES OF ENERGY  USED  IN  THE  CUSTOMER'S
PREMISES; AND
  (III) INFORMATION ON ANY IMPROVEMENTS OR MODIFICATIONS TO THE PREMISES
THAT MAY SIGNIFICANTLY AFFECT ENERGY USAGE INCLUDING INFORMATION REGARD-
ING  ENERGY  USAGE PRIOR TO AND SUBSEQUENT TO ANY QUALIFIED ENERGY EFFI-
CIENCY SERVICES COMPLETED.
  (B) AT A MINIMUM THE AUTHORITY SHALL COLLECT AND MAINTAIN  INFORMATION
FOR  DATES  PRIOR  TO  THE  PERFORMANCE  OF  QUALIFIED ENERGY EFFICIENCY
SERVICES, TO ESTABLISH A BASELINE, AND FOR DATES COVERING  A  SUBSEQUENT
TIME  PERIOD  TO  MEASURE  THE EFFECTIVENESS OF SUCH MEASURES. SUCH DATA
SHALL BE CORRELATED WITH INFORMATION FROM THE ENERGY AUDIT AND ANY OTHER
RELEVANT INFORMATION, INCLUDING INFORMATION ON LOCAL WEATHER CONDITIONS,
AND SHALL BE USED TO EVALUATE THE USE OF ON-BILL RECOVERY AND TO IMPROVE
THE ACCURACY OF PROJECTIONS OF COST-EFFECTIVENESS ON AN ON-GOING  BASIS.
AN ANALYSIS OF SUCH DATA SHALL BE INCLUDED IN THE ANNUAL REPORT PREPARED
PURSUANT TO SECTION EIGHTEEN HUNDRED NINETY-NINE OF THIS TITLE.
  (C)  ALL  INFORMATION COLLECTED BY THE AUTHORITY SHALL BE CONFIDENTIAL
AND SHALL BE USED EXCLUSIVELY FOR THE PURPOSES OF THIS SUBDIVISION.
  4.  (A) QUALIFIED ENERGY EFFICIENCY SERVICES REPAID THROUGH AN ON-BILL
RECOVERY MECHANISM SHALL BE CONSIDERED A SPECIAL ENERGY PROJECT PURSUANT
TO SECTION EIGHTEEN HUNDRED FIFTY-ONE OF  THIS  ARTICLE.  THE  NEW  YORK
STATE  ENERGY RESEARCH AND DEVELOPMENT AUTHORITY SHALL SECURE EVERY LOAN
ISSUED FOR SUCH SERVICES THAT ARE TO BE REPAID THROUGH AN ON-BILL RECOV-
ERY MECHANISM WITH A MORTGAGE UPON THE REAL PROPERTY THAT IS IMPROVED BY
SUCH SERVICES.  SUCH MORTGAGE SHALL BE RECORDED PURSUANT TO SECTION  TWO
HUNDRED NINETY-ONE-D OF THE REAL PROPERTY LAW.
  (B)  ALL  TERMS AND PROVISIONS OF A GREEN JOBS-GREEN NEW YORK MORTGAGE
PURSUANT TO THIS SUBDIVISION SHALL BE SUBJECT  AND  SUBORDINATE  TO  THE
LIEN  OF  ANY  MORTGAGE  OR  MORTGAGES  BY A BANK, CREDIT UNION OR OTHER
INSTITUTIONAL LENDER. WHEN A SUBSEQUENT PURCHASER  OF  THE  PROPERTY  IS
GRANTED  A  MORTGAGE,  THE  GREEN  JOBS-GREEN NEW YORK MORTGAGE SHALL BE
SUBORDINATE TO THE TERMS OF THAT MORTGAGE.
  S 7. Subdivision 3 of section 1899 of the public authorities  law,  as
added by chapter 487 of the laws of 2009, is amended to read as follows:
  3.  The  status  of the authority's activities and outcomes related to
section eighteen hundred ninety-six of this  title.  Such  report  shall
include,  but  not  be  limited  to:  (a) the number of persons who have
applied for and received financial assistance through the revolving loan
fund; (b) the revolving loan fund account balances; (c)  the  number  of
loans  in default; [and] (d) the amount and nature of the costs incurred
by the authority for the activities described in paragraph (c) of subdi-
vision one of section eighteen hundred ninety-six of this title; AND (E)
THE AUTHORITY'S ACTIVITIES  AND  OUTCOMES  RELATED  TO  ESTABLISHING  AN
ON-BILL  RECOVERY  MECHANISM,  INCLUDING  THE NUMBER OF PERSONS WHO HAVE
APPLIED FOR AND WHO HAVE RECEIVED  FINANCIAL  ASSISTANCE  THAT  UTILIZES
ON-BILL  RECOVERY  AND  THE  RESULTS OF THE EVALUATION PROGRAM PERFORMED
PURSUANT TO SUBDIVISION THREE OF SECTION EIGHTEEN HUNDRED NINETY-SIX  OF
THIS TITLE;

A. 7006                             8

  S  8.  Section 242 of the real property law is amended by adding a new
subdivision 4 to read as follows:
  4.  DISCLOSURE  PRIOR  TO  THE  SALE OF REAL PROPERTY TO WHICH A GREEN
JOBS-GREEN NEW YORK ON-BILL RECOVERY CHARGE  APPLIES.  (A)  ANY  PERSON,
FIRM, COMPANY, PARTNERSHIP OR CORPORATION OFFERING TO SELL REAL PROPERTY
WHICH  IS SUBJECT TO A GREEN JOBS-GREEN NEW YORK ON-BILL RECOVERY CHARGE
PURSUANT TO TITLE NINE-A OF ARTICLE EIGHT OF THE PUBLIC AUTHORITIES  LAW
SHALL  PROVIDE  WRITTEN  NOTICE  TO  THE  PROSPECTIVE  PURCHASER  OR THE
PROSPECTIVE PURCHASER'S AGENT, STATING AS  FOLLOWS:  "THIS  PROPERTY  IS
SUBJECT  TO  A  GREEN JOBS-GREEN NEW YORK ON-BILL RECOVERY CHARGE". SUCH
NOTICE SHALL ALSO STATE THE TOTAL AMOUNT OF  THE  ORIGINAL  CHARGE,  THE
PAYMENT SCHEDULE AND THE APPROXIMATE REMAINING BALANCE, A DESCRIPTION OF
THE  ENERGY EFFICIENCY SERVICES PERFORMED, INCLUDING IMPROVEMENTS TO THE
PROPERTY, AND AN EXPLANATION OF THE BENEFIT OF THE GREEN JOBS-GREEN  NEW
YORK  QUALIFIED  ENERGY  EFFICIENCY  SERVICES.    SUCH  NOTICE  SHALL BE
PROVIDED BY THE SELLER PRIOR TO ACCEPTING A PURCHASE OFFER.
  (B) ANY PROSPECTIVE OR ACTUAL PURCHASER WHO HAS SUFFERED A LOSS DUE TO
A VIOLATION OF THIS  SUBDIVISION  IS  ENTITLED  TO  RECOVER  ANY  ACTUAL
DAMAGES  INCURRED  FROM THE PERSON OFFERING TO SELL OR SELLING SAID REAL
PROPERTY.
  S 9. Subparagraph (g) of paragraph  1  of  subdivision  g  of  section
26-405 of the administrative code of the city of New York, as amended by
chapter 749 of the laws of 1990, is amended to read as follows:
  (g) There has been since July first, nineteen hundred seventy, a major
capital  improvement required for the operation, preservation or mainte-
nance of the structure. A MAJOR CAPITAL IMPROVEMENT SHALL NOT INCLUDE AN
ELIGIBLE PROJECT UNDER THE GREEN JOBS-GREEN NEW YORK PROGRAM BY THE  NEW
YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY, ESTABLISHED PURSU-
ANT  TO  TITLE NINE-A OF ARTICLE EIGHT OF THE PUBLIC AUTHORITIES LAW. An
adjustment under this subparagraph [(g)] shall be in  an  amount  suffi-
cient to amortize the cost of the improvements pursuant to this subpara-
graph [(g)] over a seven-year period; or
  S  10.  Paragraph 6 of subdivision c of section 26-511 of the adminis-
trative code of the city of New York, as amended by chapter 116  of  the
laws of 1997, is amended to read as follows:
  (6)  provides  criteria whereby the commissioner may act upon applica-
tions by owners for increases in  excess  of  the  level  of  fair  rent
increase  established under this law provided, however, that such crite-
ria shall provide (a) as to hardship applications, for  a  finding  that
the level of fair rent increase is not sufficient to enable the owner to
maintain  approximately  the same average annual net income (which shall
be computed without regard to debt service, financing costs  or  manage-
ment  fees)  for the three year period ending on or within six months of
the date of an application pursuant to such criteria  as  compared  with
annual  net income, which prevailed on the average over the period nine-
teen hundred sixty-eight through nineteen hundred seventy,  or  for  the
first three years of operation if the building was completed since nine-
teen  hundred  sixty-eight  or  for the first three fiscal years after a
transfer of title to a new owner provided the new owner can establish to
the satisfaction of the commissioner that he or she  acquired  title  to
the  building as a result of a bona fide sale of the entire building and
that the new owner is unable to obtain requisite records for the  fiscal
years  nineteen  hundred  sixty-eight  through  nineteen hundred seventy
despite diligent efforts to obtain same from predecessors in  title  and
further  provided that the new owner can provide financial data covering
a minimum of six years under his or  her  continuous  and  uninterrupted

A. 7006                             9

operation  of  the building to meet the three year to three year compar-
ative test periods herein provided; and (b) as  to  completed  building-
wide  major  capital  improvements, for a finding that such improvements
are deemed depreciable under the Internal Revenue Code and that the cost
is  to  be  amortized over a seven-year period, based upon cash purchase
price exclusive of  interest  or  service  charges.    A  MAJOR  CAPITAL
IMPROVEMENT  SHALL NOT INCLUDE AN ELIGIBLE PROJECT UNDER THE GREEN JOBS-
GREEN NEW YORK PROGRAM BY THE NEW YORK STATE ENERGY RESEARCH AND  DEVEL-
OPMENT  AUTHORITY, ESTABLISHED PURSUANT TO TITLE NINE-A OF ARTICLE EIGHT
OF THE PUBLIC AUTHORITIES LAW. Notwithstanding anything to the  contrary
contained  herein,  no  hardship increase granted pursuant to this para-
graph shall, when added to the annual gross rents, as determined by  the
commissioner, exceed the sum of, (i) the annual operating expenses, (ii)
an  allowance for management services as determined by the commissioner,
(iii) actual annual mortgage debt service (interest and amortization) on
its indebtedness to a  lending  institution,  an  insurance  company,  a
retirement  fund or welfare fund which is operated under the supervision
of the banking or insurance laws of the state of New York or the  United
States,  and (iv) eight and one-half percent of that portion of the fair
market value of the property which exceeds the unpaid  principal  amount
of  the  mortgage indebtedness referred to in subparagraph (iii) of this
paragraph. Fair market value for the purposes of this paragraph shall be
six times the annual gross rent. The collection of any increase  in  the
stabilized  rent  for any apartment pursuant to this paragraph shall not
exceed six percent in any year from the  effective  date  of  the  order
granting  the  increase over the rent set forth in the schedule of gross
rents, with collectability of any dollar excess above  said  sum  to  be
spread forward in similar increments and added to the stabilized rent as
established or set in future years;
  S  11. Paragraph 3 of subdivision d of section 6 of section 4 of chap-
ter 576 of the laws of 1974 constituting the emergency tenant protection
act of nineteen seventy-four, as amended by chapter 749 of the  laws  of
1990, is amended to read as follows:
  (3)  there has been since January first, nineteen hundred seventy-four
a major capital improvement required for the operation, preservation  or
maintenance  of  the  structure.   A MAJOR CAPITAL IMPROVEMENT SHALL NOT
INCLUDE AN ELIGIBLE PROJECT UNDER THE GREEN JOBS-GREEN NEW YORK  PROGRAM
BY  THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY, ESTAB-
LISHED PURSUANT TO TITLE 9-A OF ARTICLE 8 OF THE PUBLIC AUTHORITIES LAW.
An adjustment under this paragraph shall be in an amount  sufficient  to
amortize  the cost of the improvements pursuant to this paragraph over a
seven-year period, or
  S 12. The second undesignated paragraph of paragraph (a)  of  subdivi-
sion 4 of section 4 of chapter 274 of the laws of 1946, constituting the
emergency housing rent control law, as amended by chapter 21 of the laws
of  1962,  clause  5  as  amended by chapter 253 of the laws of 1993, is
amended to read as follows:
  No application for adjustment of maximum rent based upon a sales price
valuation shall be filed by the landlord under this  subparagraph  prior
to  six  months from the date of such sale of the property. In addition,
no adjustment ordered by the commission  based  upon  such  sales  price
valuation  shall  be  effective  prior to one year from the date of such
sale. Where, however, the assessed valuation of the  land  exceeds  four
times  the  assessed  valuation of the buildings thereon, the commission
may determine a valuation of the property equal to five times the equal-
ized assessed valuation of the  buildings,  for  the  purposes  of  this

A. 7006                            10

subparagraph. The commission may make a determination that the valuation
of  the  property  is  an  amount different from such equalized assessed
valuation where there is a request for  a  reduction  in  such  assessed
valuation  currently pending; or where there has been a reduction in the
assessed valuation for the year next preceding the effective date of the
current assessed valuation in effect at the time of the  filing  of  the
application.  Net  annual return shall be the amount by which the earned
income exceeds the operating expenses of the property,  excluding  mort-
gage  interest  and  amortization, and excluding allowances for obsoles-
cence and reserves, but including an allowance for depreciation  of  two
per  centum  of the value of the buildings exclusive of the land, or the
amount shown for depreciation of the buildings in  the  latest  required
federal  income  tax return, whichever is lower; provided, however, that
(1) no allowance for depreciation of the  buildings  shall  be  included
where  the  buildings have been fully depreciated for federal income tax
purposes or on the books of the owner; or (2) the landlord who  owns  no
more  than four rental units within the state has not been fully compen-
sated by increases in rental income  sufficient  to  offset  unavoidable
increases  in property taxes, fuel, utilities, insurance and repairs and
maintenance, excluding mortgage interest and amortization, and excluding
allowances for  depreciation,  obsolescence  and  reserves,  which  have
occurred since the federal date determining the maximum rent or the date
the  property  was acquired by the present owner, whichever is later; or
(3) the landlord operates a hotel or rooming house or owns a cooperative
apartment and has not been fully  compensated  by  increases  in  rental
income  from  the controlled housing accommodations sufficient to offset
unavoidable increases in property taxes and other costs as are allocable
to such controlled housing accommodations, including costs of  operation
of  such  hotel  or  rooming  house, but excluding mortgage interest and
amortization, and excluding allowances  for  depreciation,  obsolescence
and reserves, which have occurred since the federal date determining the
maximum  rent  or  the  date the landlord commenced the operation of the
property, whichever is later; or (4) the landlord and tenant voluntarily
enter into a valid written lease in good faith with respect to any hous-
ing accommodation, which lease provides for an increase in  the  maximum
rent not in excess of fifteen per centum and for a term of not less than
two  years,  except  that  where  such lease provides for an increase in
excess of fifteen  per  centum,  the  increase  shall  be  automatically
reduced  to fifteen per centum; or (5) the landlord and tenant by mutual
voluntary written agreement agree to a substantial increase or  decrease
in dwelling space or a change in the services, furniture, furnishings or
equipment provided in the housing accommodations; provided that an owner
shall  be entitled to a rent increase where there has been a substantial
modification or increase  of  dwelling  space  or  an  increase  in  the
services, or installation of new equipment or improvements or new furni-
ture  or furnishings provided in or to a tenant's housing accommodation.
The permanent increase in the maximum  rent  for  the  affected  housing
accommodation  shall  be  one-fortieth of the total cost incurred by the
landlord in providing such modification or increase in  dwelling  space,
services,  furniture,  furnishings  or  equipment, including the cost of
installation, but excluding finance charges  provided  further  that  an
owner  who  is entitled to a rent increase pursuant to this clause shall
not be entitled to a further rent increase based upon  the  installation
of  similar equipment, or new furniture or furnishings within the useful
life of such new equipment, or new furniture or furnishings.  The  owner
shall  give  written  notice  to  the  commission of any such adjustment

A. 7006                            11

pursuant to this clause; or (6) there has been, since March first, nine-
teen hundred fifty, an increase in  the  rental  value  of  the  housing
accommodations as a result of a substantial rehabilitation of the build-
ing  or housing accommodation therein which materially adds to the value
of the property or appreciably prolongs  its  life,  excluding  ordinary
repairs, maintenance and replacements; or (7) there has been since March
first,  nineteen hundred fifty, a major capital improvement required for
the operation, preservation or maintenance of  the  structure.  A  MAJOR
CAPITAL  IMPROVEMENT  SHALL  NOT  INCLUDE  AN ELIGIBLE PROJECT UNDER THE
GREEN JOBS-GREEN NEW YORK PROGRAM BY THE NEW YORK STATE ENERGY  RESEARCH
AND  DEVELOPMENT AUTHORITY, ESTABLISHED PURSUANT TO TITLE 9-A OF ARTICLE
8 OF THE PUBLIC AUTHORITIES LAW; or  (8)  there  has  been  since  March
first,  nineteen  hundred fifty, in structures containing more than four
housing accommodations, other improvements made with the express consent
of the tenants in occupancy of at least seventy-five per centum  of  the
housing  accommodations,  provided,  however, that no adjustment granted
hereunder shall exceed fifteen per centum unless the tenants have agreed
to a higher percentage of increase, as herein provided; or (9) there has
been, since March first, nineteen hundred fifty,  a  subletting  without
written  consent from the landlord or an increase in the number of adult
occupants who are not members of the immediate family of the tenant, and
the landlord has not been compensated  therefor  by  adjustment  of  the
maximum  rent  by  lease  or  order of the commission or pursuant to the
federal act; or (10) the presence of unique  or  peculiar  circumstances
materially  affecting  the  maximum  rent has resulted in a maximum rent
which is substantially lower than the rents generally prevailing in  the
same area for substantially similar housing accommodations.
  S  13. This act shall take effect immediately; provided, however, that
the amendments to section 26-405 of the city rent and rehabilitation law
made by section nine of this act shall remain in full force  and  effect
only  as  long  as  the  public  emergency  requiring the regulation and
control of residential rents and evictions  continues,  as  provided  in
subdivision  3  of section 1 of the local emergency housing rent control
act; provided further that the amendments to section 26-511 of the  rent
stabilization  law of nineteen hundred sixty-nine made by section ten of
this act shall expire on the same date as such law expires and shall not
affect the expiration of such law as provided under  section  26-520  of
such law, as from time to time amended; provided further that the amend-
ments  to  section  6 of the emergency tenant protection act of nineteen
seventy-four made by section eleven of this act shall expire on the same
date as such act expires and shall not affect the expiration of such act
as provided in section 17 of chapter 576 of the laws of  1974,  as  from
time  to  time  amended;  and  further  provided  that the amendments to
section 4 of the emergency housing rent  control  law  made  by  section
twelve of this act shall expire on the same date as such law expires and
shall not affect the expiration of such law as provided in subdivision 2
of section 1 of chapter 274 of the laws of 1946.