LBD15284-01-4
S. 7594 2
S 2. Article 8 of the public authorities law is amended by adding a
new title 9-B to read as follows:
TITLE 9-B
COMMERCIAL ON-BILL REPAYMENT PROGRAM
SECTION 1900. SHORT TITLE.
1901. DEFINITIONS.
1902. PURPOSE.
1903. ADMINISTRATION BY THE AUTHORITY.
1904. COMMERCIAL ON-BILL REPAYMENT PROGRAM.
1905. ADVISORY COUNCIL.
1906. ANNUAL REPORTING.
1907. FUNDS, ADMINISTRATION AND EVALUATION AND COORDINATION.
S 1900. SHORT TITLE. THIS TITLE SHALL BE KNOWN AND MAY BE CITED AS THE
"COMMERCIAL ON-BILL REPAYMENT ACT OF 2014".
S 1901. DEFINITIONS. AS USED IN THIS TITLE, THE FOLLOWING TERMS SHALL
HAVE THE FOLLOWING MEANINGS:
1. "APPLICANT" MEANS A PERSON WHO OWNS, LEASES OR MANAGES AN ELIGIBLE
STRUCTURE OR A PORTION OF SUCH ELIGIBLE STRUCTURE AND WHO HAS THE
AUTHORITY TO CONTRACT FOR THE PROVISION OF QUALIFIED CLEAN ENERGY
IMPROVEMENTS TO SUCH ELIGIBLE STRUCTURE OR PORTION OF SUCH ELIGIBLE
STRUCTURE.
2. "AUTHORITY" SHALL HAVE THE SAME MEANING AS IN SUBDIVISION TWO OF
SECTION EIGHTEEN HUNDRED FIFTY-ONE OF THIS ARTICLE.
3. "COMMERCIAL STRUCTURE" MEANS A BUILDING OTHER THAN A NON-RESIDEN-
TIAL STRUCTURE, MULTI-FAMILY STRUCTURE, OR RESIDENTIAL STRUCTURE.
4. "DISTRIBUTION UTILITY" MEANS A COMBINATION ELECTRIC AND GAS CORPO-
RATION HAVING ANNUAL REVENUES IN EXCESS OF TWO HUNDRED MILLION DOLLARS
AND THE LONG ISLAND POWER AUTHORITY.
5. "MULTI-FAMILY STRUCTURE" MEANS A MULTI-FAMILY STRUCTURE AS SUCH
TERM IS DEFINED IN SECTION 1891 OF THE PUBLIC AUTHORITIES LAW.
6. "NON-RESIDENTIAL STRUCTURE" MEANS A NON-RESIDENTIAL STRUCTURE AS
SUCH TERM IS DEFINED IN SECTION EIGHTEEN HUNDRED NINETY-ONE OF THIS
CHAPTER.
7. "ELIGIBLE PROJECT" MEANS QUALIFIED CLEAN ENERGY IMPROVEMENTS FOR AN
ELIGIBLE STRUCTURE.
8. "ELIGIBLE STRUCTURE" MEANS (A) A COMMERCIAL STRUCTURE OR (B) A
NON-RESIDENTIAL STRUCTURE.
9. "OBR AGREEMENT" MEANS A STANDARD WRITTEN AGREEMENT EXECUTED BY A
DISTRIBUTION UTILITY CUSTOMER OF RECORD WITH RESPECT TO THE SUBJECT
PROPERTY, THE OWNER OF THE SUBJECT PROPERTY AND AN OBR PARTNER OR ITS
AGENT GOVERNING THE TERMS OF AN OBR OBLIGATION.
10. "OBR MASTER SERVICER" MEANS AN ENTITY RETAINED BY THE AUTHORITY TO
IMPLEMENT THE TASKS SET FORTH IN SECTION NINETEEN HUNDRED FOUR OF THIS
TITLE.
11. "OBR MASTER SERVICER AGREEMENT" MEANS AN AGREEMENT DEVELOPED BY
THE AUTHORITY AS PROVIDED IN SECTION NINETEEN HUNDRED FOUR OF THIS
TITLE.
12. "OBR OBLIGATION" MEANS AN OBLIGATION TO REPAY A FINANCING PROVIDED
TO A UTILITY CUSTOMER FOR THE INSTALLATION OF AN ELIGIBLE PROJECT PURSU-
ANT TO AN ON-BILL REPAYMENT PROGRAM. AN OBR OBLIGATION WILL EXIST WHERE
A FINANCING PURSUANT TO AN OBR AGREEMENT HAS BEEN APPROVED BY THE OBR
MASTER SERVICER AND HAS NOT BEEN SATISFIED.
13. "OBR PARTNER" MEANS A PERSON OR ENTITY PROVIDING FINANCING FOR
QUALIFIED CLEAN ENERGY IMPROVEMENTS PURSUANT TO THE COMMERCIAL ON-BILL
REPAYMENT PROGRAM WHICH ENTERS INTO AN OBR MASTER SERVICER AGREEMENT.
OBR PARTNERS MAY INCLUDE, BUT ARE NOT LIMITED TO, BANKS, SAVINGS AND
S. 7594 3
LOAN INSTITUTIONS, CREDIT UNIONS, PROJECT DEVELOPERS, OR ENERGY SERVICE
COMPANIES. FINANCING MAY BE PROVIDED IN THE FORM OF A LOAN, LEASE, POWER
PURCHASE AGREEMENT, ENERGY SERVICE AGREEMENT, OR OTHER FINANCING STRUC-
TURE APPROVED BY THE AUTHORITY.
14. "ON-BILL REPAYMENT CHARGE" MEANS A CHARGE, CONSTITUTING REPAYMENT
OF ALL OR A PORTION OF ANY OBR OBLIGATION, THAT IS INCLUDED ON A UTILITY
BILL.
15. "PROGRAM" MEANS THE COMMERCIAL ON-BILL REPAYMENT PROGRAM CREATED
BY THIS TITLE.
16. "QUALIFIED CLEAN ENERGY IMPROVEMENTS" MEANS IMPROVEMENTS, INCLUD-
ING CLEAN ENERGY RESOURCES SUCH AS ENERGY EFFICIENCY, RENEWABLE ENERGY,
COMBINED HEAT AND POWER, DEMAND RESPONSE, AND ANY OTHER LOW-CARBON ENER-
GY TECHNOLOGY REASONABLY DESIGNATED BY THE AUTHORITY, THAT ARE PERMA-
NENTLY AFFIXED TO REAL PROPERTY AND MEET COST EFFECTIVENESS STANDARDS
ESTABLISHED BY THE AUTHORITY.
17. "RESIDENTIAL STRUCTURE" MEANS A RESIDENTIAL STRUCTURE AS SUCH TERM
IS DEFINED IN SECTION EIGHTEEN HUNDRED NINETY-ONE OF THIS CHAPTER.
S 1902. PURPOSE. THERE IS HEREBY CREATED A COMMERCIAL ON-BILL REPAY-
MENT PROGRAM. THE PURPOSE OF THE PROGRAM IS TO:
1. PROMOTE ENERGY EFFICIENCY, ENERGY CONSERVATION AND THE INSTALLATION
OF CLEAN ENERGY TECHNOLOGIES;
2. REDUCE ENERGY CONSUMPTION AND ENERGY COSTS;
3. REDUCE GREENHOUSE GAS EMISSIONS;
4. CREATE GREEN JOB OPPORTUNITIES; AND
5. PROMULGATE A REPLICABLE, SCALABLE APPROACH TO FINANCING CLEAN ENER-
GY PROJECTS FOR THE PURPOSE OF ANIMATING THE MARKET FOR SUCH PROJECTS
AND ACCELERATING THE FLOW OF CAPITAL INTO SUCH PROJECTS.
S 1903. ADMINISTRATION BY THE AUTHORITY. WITHIN THREE HUNDRED DAYS OF
THE EFFECTIVE DATE OF THIS TITLE, THE AUTHORITY IS HEREBY AUTHORIZED AND
DIRECTED TO ESTABLISH AND ADMINISTER THE COMMERCIAL ON-BILL REPAYMENT
PROGRAM. THE AUTHORITY SHALL IMPLEMENT THE PROGRAM IN CONSULTATION WITH
THE DEPARTMENT OF PUBLIC SERVICE, THE POWER AUTHORITY OF THE STATE OF
NEW YORK, THE LONG ISLAND POWER AUTHORITY, THE DEPARTMENT OF ECONOMIC
DEVELOPMENT AND THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION.
S 1904. COMMERCIAL ON-BILL REPAYMENT PROGRAM. 1. (A) THERE IS HEREBY
CREATED A COMMERCIAL ON-BILL REPAYMENT PROGRAM.
(B) IN ADMINISTERING SUCH PROGRAM, THE AUTHORITY IS AUTHORIZED AND
DIRECTED TO:
(I) ENTER INTO CONTRACTS WITH ONE OR MORE PROGRAM IMPLEMENTERS TO
PERFORM SUCH FUNCTIONS AS THE AUTHORITY DEEMS APPROPRIATE;
(II) RETAIN THE SERVICES OF A MASTER SERVICER;
(III) DEVELOP, IN CONSULTATION WITH THE DISTRIBUTION UTILITIES AND THE
DEPARTMENT OF PUBLIC SERVICE, AN OBR MASTER SERVICER AGREEMENT THAT
INCLUDES, BUT IS NOT LIMITED TO, PROVISIONS REGARDING THE FOLLOWING:
(1) PROTOCOLS FOR COMMUNICATION BETWEEN AND AMONG THE OBR PARTNERS,
THE DISTRIBUTION UTILITIES AND THE OBR MASTER SERVICER;
(2) APPROVAL BY THE MASTER SERVICER OF OBR AGREEMENTS, UPON SUBMISSION
OF CONFORMING AGREEMENTS BY OBR PARTNERS ALONG WITH CERTIFICATION BY A
LICENSED ENGINEER THAT THE WORK SCOPE FINANCED UNDER THE OBR AGREEMENT
CONFORMS WITH STANDARDS SET BY THE AUTHORITY AND THAT THE WORK WAS
COMPLETED AND CERTIFICATION BY THE OBR PARTNER THAT THE NOTICE REQUIRED
BY PARAGRAPH (B) OF SUBDIVISION TWO OF THIS SECTION WAS DELIVERED TO THE
APPLICANT;
(3) BILLING AND COLLECTION OF ON-BILL REPAYMENT CHARGES BY THE
DISTRIBUTION UTILITIES AND PAYMENT OF SUCH CHARGES TO THE OBR PARTNERS;
(4) DEFAULTS IN PAYMENT BY APPLICANTS;
S. 7594 4
(5) HANDLING OF DISPUTES AND COMPLAINTS BY PARTICIPANTS IN THE COMMER-
CIAL OBR PROGRAM, PROVIDED THAT WITH RESPECT TO DISPUTES AND COMPLAINTS
INVOLVING OBR OBLIGATIONS RELATING TO ELIGIBLE STRUCTURES OTHER THAN
COMMERCIAL STRUCTURES, THE AUTHORITY SHALL BE RESPONSIBLE FOR RESOLVING
SUCH COMPLAINTS AND DISPUTES, AND THAT WITH RESPECT TO DISPUTES AND
COMPLAINTS INVOLVING OBR OBLIGATIONS RELATING TO COMMERCIAL STRUCTURES,
SUCH MATTERS SHALL BE ADDRESSED THROUGH BINDING ARBITRATION.
(6) PAYMENT OF A FEE BY THE OBR PARTNER WITHIN THIRTY DAYS OF INITI-
ATION OF AN ON-BILL REPAYMENT CHARGE OF ONE HUNDRED DOLLARS PER OBR
OBLIGATION TO THE DISTRIBUTION UTILITY IN WHOSE SERVICE TERRITORY SUCH
CUSTOMER IS LOCATED TO HELP DEFRAY THE COSTS THAT ARE DIRECTLY ASSOCI-
ATED WITH IMPLEMENTING THE PROGRAM;
(7) PAYMENT OF A FEE BY THE OBR PARTNER WITHIN THIRTY DAYS OF THE
INITIATION OF THE ON-BILL REPAYMENT CHARGE TO THE AUTHORITY TO HELP
DEFRAY THE COSTS THAT ARE DIRECTLY ASSOCIATED WITH THE PROGRAM;
(8) PAYMENT OF A FEE BY THE OBR PARTNER WITHIN THIRTY DAYS OF INITI-
ATION OF THE ON-BILL REPAYMENT CHARGE OF ONE QUARTER OF ONE PERCENT OF
THE AMOUNT OF THE OBR OBLIGATION TO THE DISTRIBUTION UTILITY IN WHOSE
SERVICE TERRITORY SUCH CUSTOMER IS LOCATED TO HELP DEFRAY THE COSTS THAT
ARE DIRECTLY ASSOCIATED WITH THE PROGRAM;
(9) PAYMENT OF A FEE BY THE OBR PARTNER TO THE MASTER SERVICER AS
REQUIRED BY THE AGREEMENT BETWEEN THE AUTHORITY AND THE MASTER SERVICER;
AND
(10) PAYMENT OF A FEE BY THE OBR PARTNER TO THE MASTER SERVICE AS
REQUIRED BY THE AGREEMENT BETWEEN THE AUTHORITY AND THE MASTER SERVICER
FOR FEES ASSOCIATED WITH RECORDING THE DECLARATION AND SATISFACTION OF
THE OBR OBLIGATION.
(IV) ESTABLISH GUIDANCE CONCERNING QUALIFIED CLEAN ENERGY IMPROVE-
MENTS;
(V) ESTABLISH COST EFFECTIVENESS STANDARDS FOR SUCH IMPROVEMENTS. THE
COST-EFFECTIVENESS OF AN ELIGIBLE PROJECT SHALL BE EVALUATED SOLELY ON
THE BASIS OF THE COSTS AND PROJECTED SAVINGS TO THE APPLYING CUSTOMER OR
SUCH OTHER PARTY AS MAY STEP INTO THE SHOES OF THE APPLYING CUSTOMER,
USING AN ENGINEERING PROCESS THAT INCORPORATES BEST PRACTICES AS DETER-
MINED BY THE AUTHORITY FOR (1) STANDARD BASELINING, INCLUDING PRIOR
BILLING DATA AND USAGE PATTERNS, (2) SAVINGS PROJECTIONS, (3) DESIGN,
CONSTRUCTION AND COMMISSIONING; (4) OPERATIONS, MAINTENANCE AND MONITOR-
ING, AND (5) MEASUREMENT AND VERIFICATION; 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 INSTALLA-
TION OF THE MEASURES PROVIDED FURTHER THAT NOTHING HEREIN SHALL BE
CONSTRUED TO PROHIBIT OR PREVENT CUSTOMERS WHOSE PRIMARY HEATING ENERGY
SOURCE IS FROM DELIVERABLE FUELS FROM PARTICIPATING IN THE PROGRAM; AND
(VI) ESTABLISH REQUIREMENTS FOR ONGOING DISCLOSURE TO THE AUTHORITY OF
(A) SELECTED DATA CONCERNING THE ENERGY, ENVIRONMENTAL AND FINANCIAL
OUTCOMES OF QUALIFIED ENERGY PROJECTS IMPLEMENTED WITH FINANCING
PROVIDED THROUGH THE COMMERCIAL OBR PROGRAM AND (B) ALL INFORMATION THAT
THE AUTHORITY SHALL BE REQUIRED TO INCLUDE IN ITS ANNUAL REPORT TO THE
GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE
ASSEMBLY, THE MINORITY LEADER OF THE SENATE AND THE MINORITY LEADER OF
THE ASSEMBLY CONCERNING THE AUTHORITY'S ACTIVITIES RELATED TO THE
COMMERCIAL ON-BILL REPAYMENT PROGRAM AS SET FORTH IN SECTION NINETEEN
HUNDRED SEVEN OF THIS TITLE; AND
(VII) EXERCISE SUCH OTHER POWERS AS ARE NECESSARY OR CONVENIENT FOR
THE PROPER ADMINISTRATION OF THE PROGRAM, INCLUDING, AT THE DISCRETION
S. 7594 5
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 OBR OBLIGATIONS.
2. (A) APPLICANTS SEEKING TO PARTICIPATE IN THE COMMERCIAL OBR PROGRAM
SHALL ARRANGE TO OBTAIN, FROM OBR PARTNERS, FINANCING FOR QUALIFIED
CLEAN ENERGY IMPROVEMENTS. EACH OBR PARTNER SHALL ESTABLISH ITS OWN
CREDIT STANDARDS FOR SUCH FINANCING; AND THE AUTHORITY SHALL ESTABLISH A
PROCESS FOR RECEIPT AND RESOLUTION OF CUSTOMER COMPLAINTS CONCERNING
ON-BILL REPAYMENT CHARGES ARISING FROM OBR OBLIGATIONS RELATING TO
ELIGIBLE STRUCTURES OTHER THAN COMMERCIAL STRUCTURES AND FOR ADDRESSING
DELAYS AND DEFAULTS IN CUSTOMER PAYMENTS WITH RESPECT TO SUCH OBR OBLI-
GATIONS.
(B) PRIOR TO THE APPROVAL BY THE AUTHORITY OF EACH OBR AGREEMENT
ENTERED INTO BY AN APPLICANT PURSUANT TO THIS SECTION, THE OBR PARTNER
SHALL CAUSE TO BE PROVIDED TO EACH APPLICANT PROPOSING TO INCUR SUCH OBR
OBLIGATION A NOTICE STATING, IN CLEAR AND CONSPICUOUS TERMS:
(I) THE FINANCIAL AND LEGAL OBLIGATIONS AND RISKS OF PUTTING IN PLACE
THE OBR OBLIGATION, INCLUDING THE OBLIGATION TO PROVIDE OR CONSENT TO
THE CUSTOMER'S UTILITY PROVIDING THE AUTHORITY INFORMATION ON THE SOURC-
ES AND QUANTITIES OF ENERGY USED IN THE CUSTOMER'S PREMISES AND ANY
IMPROVEMENTS OR MODIFICATIONS TO THE PREMISES, USE OF THE PREMISES OR
ENERGY CONSUMING APPLIANCES OR EQUIPMENT OF ANY TYPE THAT MAY SIGNIF-
ICANTLY AFFECT ENERGY USAGE;
(II) THAT THE ON-BILL REPAYMENT CHARGE WILL BE BILLED BY SUCH CUSTOM-
ER'S UTILITY COMPANY AND THAT FAILURE TO PAY SUCH ON-BILL REPAYMENT
CHARGE MAY RESULT IN THE CUSTOMER HAVING HIS OR HER ELECTRICITY AND/OR
GAS SERVICE TERMINATED FOR NON-PAYMENT;
(III) THAT PERFORMANCE OF THE QUALIFIED CLEAN ENERGY IMPROVEMENTS MAY
NOT RESULT IN LOWER MONTHLY ENERGY COSTS OVER TIME, BASED ON ADDITIONAL
FACTORS THAT CONTRIBUTE TO MONTHLY ENERGY COSTS; AND
(IV) (1) IN THE CASE OF OBR OBLIGATIONS RELATING TO ELIGIBLE PROJECTS
PERFORMED ON ELIGIBLE STRUCTURES OTHER THAN COMMERCIAL STRUCTURES, THAT
IT IS THE SOLE RESPONSIBILITY OF THE AUTHORITY TO HANDLE CONSUMER
INQUIRIES AND COMPLAINTS RELATED TO THE OPERATION AND LENDING ASSOCIATED
WITH THE PROGRAM, PROVIDED FURTHER THAT THE AUTHORITY SHALL PROVIDE A
MECHANISM TO RECEIVE SUCH CONSUMER INQUIRIES AND COMPLAINTS.
(2) IN THE CASE OF OBR OBLIGATIONS RELATING TO ELIGIBLE PROJECTS
PERFORMED ON COMMERCIAL STRUCTURES, THAT ALL DISPUTES RELATED TO THE
OPERATION AND FINANCING ASSOCIATED WITH THE PROGRAM SHALL BE SUBJECT TO
ARBITRATION, AS PROVIDED IN THE OBR MASTER AGREEMENT.
3. THE AUTHORITY SHALL MAKE AVAILABLE TO THE PUBLIC, ON AN ANONYMIZED
BASIS, SELECTED DATA CONCERNING THE ENERGY, ENVIRONMENTAL AND FINANCIAL
OUTCOMES OF QUALIFIED ENERGY PROJECTS IMPLEMENTED WITH FINANCING
PROVIDED THROUGH THE COMMERCIAL OBR PROGRAM.
4. (A) FOR EACH OBR OBLIGATION THAT IS APPROVED BY THE AUTHORITY, THE
NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY SHALL RECORD OR
CAUSE TO BE RECORDED, PURSUANT TO ARTICLE NINE OF THE REAL PROPERTY LAW,
IN THE OFFICE OF THE APPROPRIATE RECORDING OFFICER, A DECLARATION WITH
RESPECT TO THE PROPERTY IMPROVED BY SUCH SERVICES OF THE EXISTENCE OF
THE OBR OBLIGATION AND STATING THE TOTAL AMOUNT OF THE OBR OBLIGATION,
THE TERM OF THE OBR OBLIGATION, AND THAT THE OBR OBLIGATION IS BEING
REPAID THROUGH A CHARGE ON AN ELECTRIC OR GAS METER ASSOCIATED WITH THE
PROPERTY. THE DECLARATION SHALL FURTHER STATE THAT IT IS BEING FILED
PURSUANT TO THIS SECTION AND, UNLESS FULLY SATISFIED PRIOR TO SALE OR
TRANSFER OF THE PROPERTY, THE OBR OBLIGATION SHALL SURVIVE CHANGES IN
S. 7594 6
OWNERSHIP, TENANCY, OR METER ACCOUNT RESPONSIBILITY AND, UNTIL FULLY
SATISFIED, SHALL CONSTITUTE THE OBLIGATION OF THE PERSON RESPONSIBLE FOR
THE METER ACCOUNT. SUCH DECLARATION SHALL NOT CONSTITUTE A MORTGAGE AND
SHALL NOT CREATE ANY SECURITY INTEREST OR LIEN ON THE PROPERTY. UPON
SATISFACTION OF THE OBR OBLIGATION, THE AUTHORITY SHALL FILE A DECLARA-
TION OF REPAYMENT PURSUANT TO ARTICLE NINE OF THE REAL PROPERTY LAW.
(B) THE RECORDING OFFICER SHALL RECORD SUCH DECLARATIONS IN THE SAME
BOOK, PROVIDED UNDER SECTION THREE HUNDRED FIFTEEN OF THE REAL PROPERTY
LAW, IN WHICH SUCH RECORDING OFFICER RECORDS DEEDS.
S 1905. ADVISORY COUNCIL. 1. THE AUTHORITY SHALL ESTABLISH A COMMER-
CIAL ON-BILL REPAYMENT ADVISORY COUNCIL TO ADVISE THE AUTHORITY ON THE
CREATION AND IMPLEMENTATION OF THE PROGRAM. THE COUNCIL SHALL CONSIST
OF:
(A) THE PRESIDENT OF THE AUTHORITY; THE SECRETARY OF STATE; ; THE
CHAIR OF THE DEPARTMENT OF PUBLIC SERVICE; THE PRESIDENT OF THE POWER
AUTHORITY OF THE STATE OF NEW YORK; THE PRESIDENT OF THE LONG ISLAND
POWER AUTHORITY; THE COMMISSIONER OF ECONOMIC DEVELOPMENT; THE COMMIS-
SIONER OF ENVIRONMENTAL CONSERVATION; OR THE DESIGNEES OF SUCH PERSONS;
AND
(B) UNIONS, INCLUDING BUILDING TRADES AND PROPERTY SERVICES;
LARGE-SCALE CONSTRUCTION CONTRACTORS; INVESTMENT MARKET EXPERTS; FINAN-
CIAL MARKET EXPERTS; ENVIRONMENTAL NON-GOVERNMENTAL ORGANIZATIONS; AND
REAL ESTATE EXPERTS.
2. THE PRESIDENT OF THE AUTHORITY SHALL SERVE AS THE CHAIR OF THE
COUNCIL.
S 1906. ANNUAL REPORTING. 1. NO LATER THAN OCTOBER FIRST, TWO THOU-
SAND FIFTEEN AND OCTOBER FIRST OF EACH YEAR THEREAFTER, THE PRESIDENT OF
THE AUTHORITY SHALL ISSUE AN ANNUAL REPORT TO THE GOVERNOR, THE TEMPO-
RARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY, THE MINORITY
LEADER OF THE SENATE AND THE MINORITY LEADER OF THE ASSEMBLY CONCERNING
THE AUTHORITY'S ACTIVITIES RELATED TO THE COMMERCIAL ON-BILL REPAYMENT
PROGRAM CREATED PURSUANT TO THIS TITLE. SUCH REPORT SHALL INCLUDE, BUT
NOT BE LIMITED TO THE FOLLOWING INFORMATION:
2. THE STATUS OF THE AUTHORITY'S ACTIVITIES AND OUTCOMES RELATED TO
SECTION NINETEEN HUNDRED FOUR OF THIS TITLE. SUCH REPORT SHALL INCLUDE,
BUT NOT BE LIMITED TO:
(A) THE NUMBER OF PERSONS WHO HAVE APPLIED FOR OBR OBLIGATIONS TO BE
ESTABLISHED THROUGH THE PROGRAM;
(B) THE NUMBER OF OBR OBLIGATIONS IN DEFAULT;
(C) THE AMOUNT AND NATURE OF THE COSTS INCURRED BY THE AUTHORITY FOR
THE ACTIVITIES DESCRIBED IN PARAGRAPH (B) OF SUBDIVISION ONE OF SECTION
NINETEEN HUNDRED FOUR OF THIS TITLE;
(D) THE AUTHORITY'S ACTIVITIES AND OUTCOMES RELATED TO ESTABLISHING
THE COMMERCIAL ON-BILL REPAYMENT MECHANISM, INCLUDING THE NUMBER OF
PERSONS WHO HAVE APPLIED THE OPPORTUNITY TO UTILIZE ON-BILL REPAYMENT
AND THE RESULTS OF THE EVALUATION PROGRAM PERFORMED PURSUANT TO SUBDIVI-
SION THREE OF SECTION NINETEEN HUNDRED FOUR OF THIS TITLE;
(E) THE AMOUNT EXPENDED BY THE AUTHORITY IN SUPPORT OF THE PROGRAM AND
THE PURPOSES FOR WHICH SUCH FUNDS HAVE BEEN EXPENDED;
(F) THE NUMBER OF CUSTOMERS PARTICIPATING IN THE PROGRAM AND THE
AMOUNTS FINANCED PURSUANT TO OBR AGREEMENTS WITH RESPECT TO WHICH OBR
OBLIGATIONS HAVE BEEN ESTABLISHED;
(G) THE NUMBER OF PROGRAM PARTICIPANTS WHO ARE IN ARREARS IN THEIR
UTILITY ACCOUNTS FOR ELECTRIC AND/OR GAS SERVICE;
(H) THE NUMBER OF PROGRAM PARTICIPANTS WHO ARE IN ARREARS IN THEIR
ON-BILL REPAYMENT CHARGE PAYMENTS;
S. 7594 7
(I) THE NUMBER OF PROGRAM PARTICIPANTS WHOSE UTILITY SERVICE HAS BEEN
TERMINATED FOR NON-PAYMENT;
(J) A DESCRIPTION OF THE GEOGRAPHIC DISTRIBUTION OF OBR OBLIGATIONS
MADE;
(K) AN ESTIMATE OF THE ENERGY SAVINGS RESULTING FROM THIS PROGRAM; AND
(L) AN ESTIMATE OF THE AVERAGE PROJECT COST.
S 1907. FUNDS, ADMINISTRATION AND EVALUATION AND COORDINATION. THE
AUTHORITY IS AUTHORIZED TO ACCEPT, AS AGENT OF THE STATE, ANY GIFT,
GRANT, DEVISE OR BEQUEST, WHETHER CONDITIONAL OR UNCONDITIONAL, INCLUD-
ING BUT NOT LIMITED TO FEDERAL GRANTS, AND TO USE MONIES MADE AVAILABLE
FOR THE PROGRAM FROM ANY PUBLIC OR PRIVATE SOURCE, FOR THE PURPOSE OF
ADMINISTERING AND EVALUATING THE EFFECTIVENESS OF THE PROGRAM AS SET
FORTH IN SECTION [X1] THROUGH SECTION [X7] OF THIS TITLE, INCLUSIVE.
S 3. Subdivision 4 of section 1855 of the public authorities law, as
amended by chapter 487 of the laws of 2009, is amended to read as
follows:
4. To make rules and regulations governing the exercise of its corpo-
rate powers and the fulfillment of its corporate purposes under this
title [and title] AND TITLES nine-A AND NINE-B of this article, which
shall be filed with the department of state in the manner provided by
section one hundred two of the executive law.
S 4. Paragraph (h) of subdivision 2 of section 18-a of the public
service law, as amended by section 2 of part A of chapter 173 of the
laws of 2013, is amended by to read as follows:
(h) On-bill recovery charges billed pursuant to section sixty-six-m of
this chapter AND ON-BILL REPAYMENT CHARGES BILLED PURSUANT TO SECTION
SIXTY-SIX-N 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 5. Paragraph (d) of subdivision 6 of section 65 of the public
service law, as amended by chapter 388 of the laws of 2011, 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 (I) to the performance of qualified energy efficien-
cy services for customers participating in green jobs-green New York
on-bill recovery pursuant to section sixty-six-m of this article; OR
(II) THE PERFORMANCE OF QUALIFIED ENERGY CLEAN ENERGY IMPROVEMENTS FOR
CUSTOMERS PARTICIPATING IN THE COMMERCIAL ON-BILL REPAYMENT PROGRAM
PURSUANT TO SECTION SIXTY-SIX-N OF THIS ARTICLE.
S 6. The public service law is amended by adding a new section 66-n to
read as follows:
S 66-N. COMMERCIAL ON-BILL REPAYMENT PROGRAM. 1. (A) THE COMMISSION
SHALL, WITHIN FORTY-FIVE DAYS OF THE EFFECTIVE DATE OF THIS SECTION,
COMMENCE A PROCEEDING TO INVESTIGATE THE IMPLEMENTATION BY EACH COMBINA-
TION ELECTRIC AND GAS CORPORATION HAVING ANNUAL REVENUES IN EXCESS OF
TWO HUNDRED MILLION DOLLARS OF A BILLING AND COLLECTION SERVICE FOR
ON-BILL REPAYMENT CHARGES IN PAYMENT OF OBLIGATIONS OF ITS CUSTOMERS
PURSUANT TO THE COMMERCIAL ON-BILL REPAYMENT PROGRAM ESTABLISHED PURSU-
ANT TO TITLE NINE-B OF ARTICLE EIGHT OF THE PUBLIC AUTHORITIES LAW AND,
WITHIN ONE HUNDRED FIFTY DAYS OF THE EFFECTIVE DATE OF THIS SECTION, THE
COMMISSION SHALL MAKE A DETERMINATION ESTABLISHING THE BILLING AND
COLLECTION PROCEDURES FOR SUCH ON-BILL REPAYMENT CHARGES. THE DEPARTMENT
SHALL CONSULT WITH THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT
AUTHORITY IN THE PREPARATION OF ITS RECOMMENDATIONS TO THE COMMISSION
FOR SUCH DETERMINATION. THE COMMISSION SHALL REQUIRE SUCH ELECTRIC AND
S. 7594 8
GAS CORPORATIONS TO OFFER BILLING AND COLLECTION SERVICES FOR COMMERCIAL
ON-BILL REPAYMENT CHARGES FOR ELIGIBLE CUSTOMERS WITHIN THREE HUNDRED
DAYS OF THE EFFECTIVE DATE OF THIS SECTION. TO THE EXTENT PRACTICABLE,
SUCH ELECTRIC AND GAS CORPORATIONS SHALL UTILIZE EXISTING ELECTRONIC
DATA INTERCHANGE INFRASTRUCTURE OR OTHER EXISTING BILLING INFRASTRUCTURE
TO IMPLEMENT THEIR BILLING AND COLLECTION RESPONSIBILITIES UNDER THIS
SECTION.
(B) THE COMMISSION MAY SUSPEND SUCH AN ELECTRIC AND GAS CORPORATION'S
PARTICIPATION IN THE COMMERCIAL ON-BILL REPAYMENT PROGRAM PROVIDED THAT
THE COMMISSION, AFTER CONDUCTING A HEARING AS PROVIDED IN SECTION TWENTY
OF THIS CHAPTER, MAKES A FINDING THAT THERE IS A SIGNIFICANT INCREASE IN
ARREARS OR UTILITY SERVICE DISCONNECTIONS THAT THE COMMISSION DETERMINES
IS DIRECTLY RELATED TO ON-BILL REPAYMENT CHARGES, OR A FINDING OF OTHER
GOOD CAUSE. ANY SUSPENSION PURSUANT TO THIS SUBDIVISION SHALL NOT AFFECT
SUCH ELECTRIC AND GAS CORPORATION'S OBLIGATIONS WITH RESPECT TO ANY
EXISTING OBR OBLIGATIONS OUTSTANDING AT THE TIME OF SUCH SUSPENSION,
INCLUDING THE CONTINUED COLLECTION OF ALL ON-BILL REPAYMENT CHARGES
RELATED THERETO.
(C) THE ON-BILL REPAYMENT CHARGE SHALL BE COLLECTED ON THE BILL FROM
THE CUSTOMER'S ELECTRIC CORPORATION UNLESS THE QUALIFIED CLEAN ENERGY
IMPROVEMENTS AT THAT CUSTOMER'S PREMISES RESULT IN MORE PROJECTED ENERGY
SAVINGS ON THE CUSTOMER'S GAS BILL THAN THE ELECTRIC BILL, IN WHICH CASE
SUCH CHARGE SHALL BE COLLECTED ON THE CUSTOMER'S GAS CORPORATION BILL.
2. SCHEDULES FOR THE COLLECTION AND BILLING OF ON-BILL REPAYMENT
CHARGES SHALL PROVIDE:
(A) THAT BILLING AND COLLECTION SERVICES SHALL BE AVAILABLE TO ALL
CUSTOMERS WHO HAVE MET THE STANDARDS ESTABLISHED BY THE NEW YORK STATE
ENERGY RESEARCH AND DEVELOPMENT AUTHORITY FOR PARTICIPATION IN THE
COMMERCIAL ON-BILL REPAYMENT PROGRAM AND HAVE EXECUTED AN OBR AGREEMENT
FOR THE PERFORMANCE OF QUALIFIED CLEAN ENERGY IMPROVEMENTS UNDER SUCH
PROGRAM AND HAVE ESTABLISHED AN OBR OBLIGATION PURSUANT TO SECTION NINE-
TEEN HUNDRED FOUR OF THE PUBLIC AUTHORITIES LAW;
(B) THAT THE RESPONSIBILITIES OF SUCH ELECTRIC AND GAS CORPORATION ARE
LIMITED TO PROVIDING BILLING AND COLLECTION SERVICES FOR ON-BILL REPAY-
MENT CHARGES AS DIRECTED BY THE AUTHORITY;
(C) UNLESS FULLY SATISFIED PRIOR TO SALE OR TRANSFER, THAT (I) THE
ON-BILL REPAYMENT 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 REPAYMENT CHARGES AT
THE TIME OF ACCOUNT CLOSURE OR METER TRANSFER SHALL REMAIN THE RESPONSI-
BILITY OF THE INCURRING CUSTOMER, UNLESS EXPRESSLY ASSUMED BY A SUBSE-
QUENT PURCHASER OF THE PROPERTY SUBJECT TO SUCH CHARGES;
(D) WITH RESPECT TO A CUSTOMER ACCOUNT WITH AN ELECTRIC AND GAS CORPO-
RATION THAT HAS BEEN CLOSED AND IN WHICH ARREARAGES EXIST, INCLUDING AN
ARREARAGE WITH RESPECT TO AN ON-BILL REPAYMENT CHARGE, THE COMMISSION
MAY ADOPT RULES PROVIDING THAT AFTER A PERIOD OF TIME TO BE DETERMINED
BY THE COMMISSION, THE SHARE OF TOTAL ARREARAGE THAT IS ATTRIBUTABLE TO
THE ON-BILL REPAYMENT CHARGE MAY BE DEEMED, AS OF A DATE CERTAIN, TO BE
AN OBLIGATION OWED DIRECTLY TO THE OBR PARTNER AND NOT TO THE ELECTRIC
AND GAS CORPORATION;
(E) WITH RESPECT TO A CUSTOMER REMITTING LESS THAN THE TOTAL AMOUNT
DUE FOR ELECTRIC AND/OR GAS SERVICES AND ON-BILL REPAYMENT CHARGES, THE
AUTHORITY MAY REQUIRE THAT PAYMENTS BE ALLOCATED TO THE UTILITY AND THE
OBR PARTNER IN ACCORDANCE WITH A WATERFALL, SUCH WATERFALL TO BE
DESIGNED WITH AN OBJECTIVE OF NOT INCREASING UTILITY BAD DEBT EXPENSE,
WITH PRIORITY IN THE WATERFALL BEING GIVEN TO PAST-DUE AMOUNTS IN
S. 7594 9
ACCORDANCE WITH THE BILLING PERIOD DURING WHICH ANY SUCH AMOUNTS WERE
ACCRUED, WITH NO ALLOCATIONS OF ARREARAGES OR CURRENT CHARGES BEING MADE
TO EITHER THE UTILITY OR THE OBR PARTNER WHILE ARREARAGES OF EITHER TYPE
FROM ANY EARLIER BILLING PERIOD REMAIN OUTSTANDING, AND, WITH RESPECT TO
CHARGES THAT ACCRUED DURING THE SAME BILLING PERIOD, ALLOCATIONS TO THE
UTILITY IN RESPECT OF ANY NON-OBR CHARGES IN ALL CASES BEING MADE AHEAD
OF ALLOCATIONS TO THE OBR PARTNER FOR ANY OBR CHARGES
(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 COMMERCIAL
ON-BILL REPAYMENT PROGRAM SHALL NOT AFFECT A CUSTOMER'S ELIGIBILITY FOR
ANY REBATE OR INCENTIVE OFFERED BY A UTILITY OR THE NEW YORK STATE ENER-
GY RESEARCH AND DEVELOPMENT AUTHORITY; AND
(H) ANY OTHER PROVISIONS NECESSARY TO PROVIDE FOR THE BILLING AND
COLLECTION OF ON-BILL REPAYMENT CHARGES.
S 7. Sections 1020-ii, 1020-jj and 1020-kk of the public authorities
law, as renumbered by chapter 388 of the laws of 2011, are renumbered
sections 1020-jj, 1020-kk and 1020-ll and a new section 1020-ii is added
to read as follows:
S 1020-II. COMMERCIAL ON-BILL REPAYMENT. 1. WITHIN THREE HUNDRED DAYS
OF THE EFFECTIVE DATE OF THIS SECTION, THE AUTHORITY SHALL ESTABLISH A
PROGRAM TO PROVIDE FOR THE BILLING AND COLLECTION OF ON-BILL REPAYMENT
CHARGES FOR PAYMENT OF OBLIGATIONS OF ITS CUSTOMERS TO THE COMMERCIAL
ON-BILL REPAYMENT PROGRAM ESTABLISHED PURSUANT TO TITLE NINE-B OF ARTI-
CLE EIGHT OF THE PUBLIC AUTHORITIES LAW. SUCH PROGRAM SHALL BE CONSIST-
ENT WITH THE STANDARDS SET FORTH IN SECTION SIXTY-SIX-N OF THE PUBLIC
SERVICE LAW. BILLING AND COLLECTION SERVICES UNDER SUCH TARIFFS SHALL
COMMENCE AS SOON AS PRACTICABLE AFTER ESTABLISHMENT OF THE PROGRAM.
2. THE AUTHORITY MAY SUSPEND ITS OFFERING OF THE ON-BILL REPAYMENT
CHARGE PROVIDED THAT THE AUTHORITY MAKES A FINDING THAT THERE IS A
SIGNIFICANT INCREASE IN ARREARS OR UTILITY SERVICE DISCONNECTIONS THAT
THE AUTHORITY DETERMINES IS DIRECTLY RELATED TO SUCH CHARGE, OR A FIND-
ING OF OTHER GOOD CAUSE.
S 8. Section 242 of the real property law is amended by adding a new
subdivision 5 to read as follows:
5. DISCLOSURE PRIOR TO THE SALE OF REAL PROPERTY TO WHICH A COMMERCIAL
ON-BILL REPAYMENT CHARGE APPLIES. (A) ANY PERSON, FIRM, COMPANY, PART-
NERSHIP OR CORPORATION OFFERING TO SELL REAL PROPERTY WHICH IS SUBJECT
TO A COMMERCIAL ON-BILL REPAYMENT CHARGE PURSUANT TO TITLE NINE-B OF
ARTICLE EIGHT OF THE PUBLIC AUTHORITIES LAW SHALL PROVIDE WRITTEN NOTICE
TO THE PROSPECTIVE PURCHASER OR THE PROSPECTIVE PURCHASER'S AGENT, STAT-
ING AS FOLLOWS: "THIS PROPERTY IS SUBJECT TO A COMMERCIAL ON-BILL REPAY-
MENT CHARGE". SUCH NOTICE SHALL ALSO INCLUDE, AS AN ATTACHMENT, THE OBR
AGREEMENT GOVERNING THE COMMERCIAL ON-BILL REPAYMENT OBLIGATION, INCLUD-
ING ANY MODIFICATIONS THERETO, A DESCRIPTION OF THE CLEAN ENERGY
IMPROVEMENTS PERFORMED, INCLUDING IMPROVEMENTS TO THE PROPERTY, AND AN
EXPLANATION OF THE BENEFIT OF THE COMMERCIAL ON-BILL REPAYMENT QUALIFIED
CLEAN ENERGY 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. 7594 10
S 9. section 291-j of the real property law, as added by section 2 of
part DD of chapter 58 of the laws of 2012, is amended to read as
follows:
S 291-j. Recording of declarations by the New York state energy
research and development authority. 1. Pursuant to subdivision five of
section eighteen hundred ninety-six of the public authorities law, the
New York state energy research and development authority shall record or
cause to be recorded, in the office of the appropriate recording offi-
cer, a declaration evidencing the existence of a loan as described ther-
ein and, upon satisfaction of such loan, such authority shall file a
declaration of repayment and full satisfaction of the loan repayment
utility meter charge. The recording officer shall record such declara-
tions in the same book, provided under section three hundred fifteen of
the real property law, in which such recording officer records deeds.
2. PURSUANT TO SUBDIVISION FOUR OF SECTION NINETEEN HUNDRED FOUR OF
THE PUBLIC AUTHORITIES LAW, THE NEW YORK STATE ENERGY RESEARCH AND
DEVELOPMENT AUTHORITY SHALL RECORD OR CAUSE TO BE RECORDED, IN THE
OFFICE OF THE APPROPRIATE RECORDING OFFICER, A DECLARATION EVIDENCING
THE EXISTENCE OF AN OBR OBLIGATION AS DESCRIBED THEREIN AND, UPON SATIS-
FACTION OF SUCH OBR OBLIGATION, SUCH AUTHORITY SHALL FILE A DECLARATION
OF REPAYMENT AND FULL SATISFACTION OF THE OBR OBLIGATION. THE RECORDING
OFFICER SHALL RECORD SUCH DECLARATION IN THE SAME BOOK, PROVIDED UNDER
SECTION THREE HUNDRED FIFTEEN OF THIS ARTICLE, IN WHICH SUCH RECORDING
OFFICER RECORDS DEEDS.
S 10. This act shall take effect immediately.