S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5974--A
     Cal. No. 667
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              March 24, 2023
                                ___________
 
 Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
   printed to be committed to the Committee on  Energy  and  Telecommuni-
   cations  --  reported  favorably from said committee, ordered to first
   and second report, ordered to a third  reading,  amended  and  ordered
   reprinted, retaining its place in the order of third reading
 
 AN  ACT to amend the general municipal law, in relation to the municipal
   sustainable energy loan program
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section  119-ee of the general municipal law, as added by
 chapter 497 of the laws of 2009, is amended to read as follows:
   § 119-ee. Legislative findings and declaration. The legislature  finds
 and declares, AND AS REAFFIRMED IN THE NEW YORK STATE CLIMATE LEADERSHIP
 AND  COMMUNITY  PROTECTION  ACT,  that  it is the policy of the state to
 achieve statewide energy efficiency and renewable energy  goals,  reduce
 ECONOMY-WIDE  greenhouse gas emissions and mitigate the effect of global
 climate change, and advance a clean energy economy; and that to  achieve
 such policy and goals the state must promote the deployment of renewable
 energy systems [and], energy efficiency measures, WATER EFFICIENCY MEAS-
 URES, AND RESILIENCY IMPROVEMENTS throughout the state; THAT MEASURES TO
 ACHIEVE  REDUCTIONS  IN ENERGY USE, REDUCE EMISSIONS, AND SCALE DISTRIB-
 UTED SOLAR ENERGY AND BENEFICIAL ELECTRICAL EQUIPMENT IN RESIDENTIAL AND
 COMMERCIAL BUILDINGS, SPECIFICALLY  HAVE  BEEN  IDENTIFIED  AS  CRITICAL
 AREAS  FOR  INVESTMENT  TO  ACHIEVE THESE GOALS; and that municipalities
 would fulfill an important public purpose  by  [providing]  FACILITATING
 MARKET-BASED  FINANCING loans to property owners for the installation of
 renewable energy systems [and], energy efficiency measures, WATER  EFFI-
 CIENCY MEASURES, AND RESILIENCY IMPROVEMENTS.
   §  2. Section 119-ff of the general municipal law, as amended by chap-
 ter 184 of the laws of 2020, is amended to read as follows:
   § 119-ff. Definitions. For purposes of this article:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD10455-02-3
 S. 5974--A                          2
 
   1. "Authority" means the New York state energy research  and  develop-
 ment  authority,  as  defined  by  subdivision  two  of section eighteen
 hundred fifty-one of the public authorities law, or its successor.
   2.  "Credit support" means and includes direct loans, letters of cred-
 it, loan guarantees, and insurance products;  and  the  purchase  of  or
 commitment  to  purchase,  or  the  sale  of or commitment to sell, debt
 instruments, including subordinated securities.
   3. "Energy audit" means a formal evaluation of the energy  consumption
 OR CARBON INTENSITY of a permanent building or structural improvement to
 real  property, conducted by a contractor certified by the authority, or
 certified by a certifying entity approved by the authority for  purposes
 of this article, for the purpose of identifying appropriate energy effi-
 ciency  improvements  that  could  be  made  to or incorporated into the
 construction of the property AND DETERMINING THE  USEFUL  LIFE  OF  SUCH
 IMPROVEMENTS.  AN  ENERGY  AUDIT MAY DOCUMENT ANCILLARY IMPROVEMENTS AND
 RELATED COSTS THAT ARE REQUIRED FOR THE ENERGY  EFFICIENCY  IMPROVEMENTS
 TO PROCEED AND FURTHER SHALL DOCUMENT EXPECTED ENERGY SAVINGS, SECONDARY
 OR SOCIETAL BENEFITS SUCH AS REDUCTIONS IN GREENHOUSE GAS EMISSIONS, AND
 ANY OTHER ENVIRONMENTAL, ECONOMIC AND PUBLIC HEALTH CO-BENEFITS, INCLUD-
 ING  THOSE  ENUMERATED  IN  THE SCOPING PLANS AND RELATED VALUES CREATED
 PURSUANT TO ARTICLE SEVENTY-FIVE OF THE ENVIRONMENTAL CONSERVATION  LAW.
 A municipal corporation may, by local law, provide for the certification
 of such QUALIFYING contractors based upon criteria at least as stringent
 as  the [state-wide] STATEWIDE criteria for certification adopted by the
 authority for purposes of this article.
   4. "Energy efficiency improvement" means any improvement to real prop-
 erty, whether as a component of the new construction of a building or as
 the renovation or retrofitting of an existing building  DESIGNED  to  A.
 reduce  energy consumption[, such as window and door replacement, light-
 ing, caulking, weatherstripping, air sealing,  insulation,  and  heating
 and  cooling system upgrades, and similar improvements, determined to be
 cost-effective pursuant to criteria established  by  the  authority]  OR
 GREENHOUSE GAS EMISSIONS, B. EXCEED REQUIRED ENERGY CODE REQUIREMENTS AT
 THE TIME OF PROJECT PERMITTING, OR C. MEET ANOTHER BUILDING DESIGN STAN-
 DARD  FOR  ENERGY  OR  CARBON  PERFORMANCE  AS DEEMED APPROPRIATE BY THE
 AUTHORITY. However, "energy efficiency improvement"  shall  not  include
 [lighting  measures  or]  household  appliances that are not permanently
 fixed to real property.
   5. "Municipal corporation" means a county, town, city or village.
   6. "QUALIFYING CONTRACTOR" MEANS A CONTRACTOR CERTIFIED BY THE AUTHOR-
 ITY, OR CERTIFIED BY A CERTIFYING ENTITY APPROVED BY THE  AUTHORITY  FOR
 PURPOSES  OF THIS ARTICLE, AND RETAINED BY THE OWNER OF REAL PROPERTY OR
 THEIR DESIGNEE.
   7. "Real property" means any property, an interest in which is  or  is
 eligible  to  be  recorded  or  registered  on  municipal land ownership
 records by the possessor of such interest.
   [7.] 8. "Renewable energy system" means an  energy  generating  system
 for  the  generation of electric or thermal energy, to be used primarily
 at such property, except when the owner of real property is a commercial
 entity, by means of solar thermal, solar photovoltaic, wind, geothermal,
 anaerobic digester gas-to-electricity systems, fuel  cell  technologies,
 or  other  renewable  energy  technology  approved  by the authority not
 including the combustion or pyrolysis of solid waste.
   [8.] 9. "Renewable energy system feasibility study"  means  a  written
 study,  conducted  by a contractor certified by the authority, or certi-
 fied by a certifying entity approved by the authority  for  purposes  of
 S. 5974--A                          3
 
 this article, for the purpose of determining the feasibility of install-
 ing  a  renewable  energy  system  AND THE USEFUL LIFE OF SUCH SYSTEM. A
 RENEWABLE  ENERGY  SYSTEM  FEASIBILITY  STUDY  MAY  DOCUMENT   ANCILLARY
 IMPROVEMENTS  AND  RELATED  COSTS  THAT  ARE REQUIRED FOR THE RENEWABLES
 ENERGY SYSTEM TO PROCEED AND  FURTHER  SHALL  DOCUMENT  EXPECTED  ENERGY
 SAVINGS, SECONDARY OR SOCIETAL BENEFITS SUCH AS REDUCTIONS IN GREENHOUSE
 GAS  EMISSIONS,  AND ANY OTHER ENVIRONMENTAL, ECONOMIC AND PUBLIC HEALTH
 CO-BENEFITS, INCLUDING THOSE ENUMERATED IN THE SCOPING PLANS AND RELATED
 VALUES CREATED PURSUANT TO ARTICLE  SEVENTY-FIVE  OF  THE  ENVIRONMENTAL
 CONSERVATION LAW. A municipal corporation may, by local law, provide for
 the  certification of such QUALIFYING contractors based upon criteria at
 least as stringent as the [state-wide] STATEWIDE  criteria  for  certif-
 ication adopted by the authority for purposes of this article.
   10.  "RESILIENCY  IMPROVEMENT"  MEANS  IMPROVEMENTS  TO REAL PROPERTY,
 WHETHER AS A COMPONENT OF THE NEW CONSTRUCTION OF A BUILDING OR  AS  THE
 RENOVATION OR RETROFITTING OF AN EXISTING BUILDING, DESIGNED TO INCREASE
 THE  RESILIENCE  OF  A QUALIFYING PROPERTY, INCLUDING AIR QUALITY, FLOOD
 MITIGATION, STORMWATER MANAGEMENT,  BENEFICIAL  ELECTRIFICATION,  ENERGY
 STORAGE  AND  MICROGRIDS,  ALTERNATIVE  VEHICLE CHARGING INFRASTRUCTURE,
 FIRE OR WIND RESISTANCE OR INUNDATION ADAPTATION.
   11. "RESILIENCY FEASIBILITY STUDY" MEANS A WRITTEN STUDY CONDUCTED  BY
 A  CONTRACTOR  CERTIFIED  BY THE AUTHORITY, OR CERTIFIED BY A CERTIFYING
 ENTITY APPROVED BY THE AUTHORITY FOR PURPOSES OF THIS ARTICLE,  FOR  THE
 PURPOSE  OF  DETERMINING  THE  FEASIBILITY  OF  INSTALLING  A RESILIENCY
 IMPROVEMENT AND THE USEFUL LIFE OF SUCH IMPROVEMENT. A RESILIENCY FEASI-
 BILITY STUDY MAY DOCUMENT ANCILLARY IMPROVEMENTS AND RELATED COSTS  THAT
 ARE  REQUIRED  FOR  THE  RENEWABLES ENERGY SYSTEM TO PROCEED AND FURTHER
 SHALL DOCUMENT EXPECTED COST SAVINGS  FOR  THE  SUBJECT  REAL  PROPERTY,
 SECONDARY  OR  SOCIETAL  BENEFITS SUCH AS ENHANCED COMMUNITY RESILIENCY,
 AND ANY OTHER ENVIRONMENTAL, ECONOMIC  AND  PUBLIC  HEALTH  CO-BENEFITS,
 INCLUDING  THOSE  ENUMERATED  IN  THE  SCOPING  PLANS AND RELATED VALUES
 CREATED PURSUANT TO ARTICLE SEVENTY-FIVE OF THE ENVIRONMENTAL  CONSERVA-
 TION  LAW.  A  MUNICIPAL  CORPORATION MAY, BY LOCAL LAW, PROVIDE FOR THE
 CERTIFICATION OF SUCH QUALIFYING  CONTRACTORS  BASED  UPON  CRITERIA  AT
 LEAST  AS  STRINGENT AS THE STATEWIDE CRITERIA FOR CERTIFICATION ADOPTED
 BY THE AUTHORITY FOR PURPOSES OF THIS ARTICLE.
   12. "WATER EFFICIENCY IMPROVEMENT" MEANS ANY IMPROVEMENT TO REAL PROP-
 ERTY, WHETHER AS A COMPONENT OF THE NEW CONSTRUCTION OF A BUILDING OR AS
 THE RENOVATION AND RETROFITTING OF AN EXISTING BUILDING, TO REDUCE WATER
 CONSUMPTION AND PROMOTE WATER CONSERVATION AND STORAGE, SUCH AS  LO-FLOW
 DEVICES,  RESTRICTORS,  WATER RECAPTURE AND RECYCLING SYSTEMS, AND RAIN-
 FALL CAPTURE AND STORAGE SYSTEMS.
   13. "WATER EFFICIENCY STUDY" MEANS A WRITTEN  STUDY,  CONDUCTED  BY  A
 CONTRACTOR  CERTIFIED  BY  THE  AUTHORITY,  OR CERTIFIED BY A CERTIFYING
 ENTITY APPROVED BY THE AUTHORITY FOR PURPOSES OF THIS ARTICLE,  FOR  THE
 PURPOSE  OF  DETERMINING  THE FEASIBILITY OF INSTALLING WATER EFFICIENCY
 IMPROVEMENTS AND THE USEFUL LIFE OF SUCH IMPROVEMENTS. A WATER EFFICIEN-
 CY STUDY MAY DOCUMENT ANCILLARY IMPROVEMENTS AND RELATED COSTS THAT  ARE
 REQUIRED  FOR  THE RENEWABLES ENERGY SYSTEM TO PROCEED AND FURTHER SHALL
 DOCUMENT EXPECTED WATER SAVINGS, SECONDARY OR SOCIETAL BENEFITS SUCH  AS
 RECAPTURE,  RECYCLING, AND STORAGE, AND ANY OTHER ENVIRONMENTAL, ECONOM-
 IC, AND PUBLIC HEALTH CO-BENEFITS, INCLUDING  THOSE  ENUMERATED  IN  THE
 SCOPING  PLANS  AND  RELATED VALUES CREATED PURSUANT TO ARTICLE SEVENTY-
 FIVE OF THE ENVIRONMENTAL CONSERVATION LAW. A MUNICIPAL CORPORATION MAY,
 BY LOCAL LAW, PROVIDE FOR THE CERTIFICATION OF SUCH QUALIFYING  CONTRAC-
 S. 5974--A                          4
 
 TORS BASED UPON CRITERIA AT LEAST AS STRINGENT AS THE STATEWIDE CRITERIA
 FOR CERTIFICATION ADOPTED BY THE AUTHORITY FOR PURPOSES OF THIS ARTICLE.
   §  3. Section 119-gg of the general municipal law, as added by chapter
 497 of the laws of 2009, subdivisions 1 and 6 as amended by chapter  320
 of the laws of 2017, is amended to read as follows:
   §  119-gg. Sustainable energy loan program. 1. The legislative body of
 any municipal corporation may, by local  law,  establish  a  sustainable
 energy  loan  program  using  federal grant assistance or federal credit
 support or monies from the state of New York or any state  authority  as
 defined  by section two of the public authorities law available for this
 purpose.
   2. Such program may [make] FACILITATE loans  to  the  owners  of  real
 property located within the municipal corporation to finance the instal-
 lation  of  renewable  energy  systems [and], energy efficiency improve-
 ments, WATER EFFICIENCY IMPROVEMENTS, RESILIENCY  IMPROVEMENTS,  related
 energy  audits  and  renewable  energy system FEASIBILITY STUDIES, WATER
 EFFICIENCY STUDIES, AND RESILIENCY IMPROVEMENT feasibility studies,  and
 the  verification  of the installation of such systems and improvements.
 No municipal corporation shall make such a loan to an owner of  property
 that  has received a loan from another municipal corporation pursuant to
 this article.
   3. Each such  local  law  establishing  the  sustainable  energy  loan
 program  shall  provide  for  the criteria for making such loans and the
 terms and conditions for repayment of such loans. [The sustainable ener-
 gy loan program shall use such lists of cost effective energy efficiency
 improvements for different building types as are approved by the author-
 ity.]
   4. The municipal corporation shall verify and report on the  installa-
 tion and performance of renewable energy systems [and], energy efficien-
 cy  improvements, WATER EFFICIENCY IMPROVEMENTS, AND RESILIENCY IMPROVE-
 MENTS financed by the loan program  in  such  form  and  manner  as  the
 authority may establish.
   5.  [Every]  NOTWITHSTANDING  SUBDIVISION THREE OF THIS SECTION, EVERY
 loan made under the sustainable energy loan program shall be repaid over
 a term not to exceed the weighted average of the  useful  life  of  such
 systems  and  improvements  as determined by the [municipal corporation.
 The municipal  corporation  shall  set]  QUALIFYING  CONTRACTOR  IN  THE
 RELATED  ENERGY  AUDIT, RENEWABLE ENERGY SYSTEM FEASIBILITY STUDY, WATER
 EFFICIENCY STUDY, OR RESILIENCY IMPROVEMENT FEASIBILITY STUDY AND  THERE
 SHALL  BE  a  fixed  rate of interest for the repayment of the principal
 amount of each loan at the time the loan is made.
   6. NOTWITHSTANDING SUBDIVISION THREE OF THIS SECTION:
   a. For loans made to an owner of real property that  is  a  commercial
 entity, not-for-profit organization, or entity other than an individual,
 [the  municipal  corporation shall have the authority to impose require-
 ments on the maximum amount that may  be  borrowed  through  such  loan,
 which  may  consider  factors  including but not limited to the property
 value,  projected  savings,  project  cost,  and  existing  indebtedness
 secured  by such property] AT THE TIME OF EXECUTION OF A LOAN, THE PRIN-
 CIPAL AMOUNT OF SUCH LOAN, EXCLUDING  INTEREST,  SHALL  NOT  EXCEED  THE
 LESSER  OF  THIRTY-FIVE PERCENT OF THE APPRAISED REAL PROPERTY VALUE, AS
 STABILIZED OR AS COMPLETE, OR THE ACTUAL COST  OF  INSTALLING  RENEWABLE
 ENERGY  SYSTEMS,  ENERGY EFFICIENCY IMPROVEMENTS, WATER EFFICIENCY MEAS-
 URES AND RESILIENCY  IMPROVEMENTS,  INCLUDING  THE  COSTS  OF  NECESSARY
 EQUIPMENT,  MATERIALS,  AND  LABOR,  FINANCING  COSTS, THE COSTS OF EACH
 RELATED ENERGY AUDIT  AND  RENEWABLE  ENERGY  SYSTEM,  WATER  EFFICIENCY
 S. 5974--A                          5
 
 STUDY,  AND  RESILIENCY  IMPROVEMENT  FEASIBILITY STUDY, AND THE COST OF
 VERIFICATION OF SUCH RENEWABLE  ENERGY  SYSTEM  AND  ENERGY  EFFICIENCY,
 WATER EFFICIENCY, AND RESILIENCY IMPROVEMENTS.
   b.  For  loans made to an owner of real property who is an individual,
 the principal amount of each such loan, excluding  interest,  shall  not
 exceed the lesser of ten percent of the appraised real property value or
 the  actual cost of installing the renewable energy system [and], energy
 efficiency  improvements,  WATER  EFFICIENCY  MEASURES  AND   RESILIENCY
 IMPROVEMENTS, including the costs of necessary equipment, materials, and
 labor,  FINANCING  COSTS,  the costs of each related energy audit [and],
 renewable energy system feasibility study, WATER EFFICIENCY  STUDY,  AND
 RESILIENCY  IMPROVEMENT  FEASIBILITY STUDY, and the cost of verification
 of such renewable energy system and energy efficiency,  WATER  EFFICIEN-
 CY, AND RESILIENCY improvements.
   C.  AT  THE  TIME OF EXECUTION OF A LOAN, THE PRINCIPAL AMOUNT OF EACH
 SUCH LOAN, EXCLUDING INTEREST, PLUS ANY OTHER DEBT SECURED BY  THE  REAL
 PROPERTY, SHALL NOT EXCEED NINETY PERCENT OF THE APPRAISED REAL PROPERTY
 VALUE, AS STABILIZED OR AS COMPLETE.
   D. THE OWNER OF A COMMERCIAL REAL PROPERTY SHALL PROVIDE THE MUNICIPAL
 CORPORATION WITH THE WRITTEN CONSENT, EXECUTED BY EACH HOLDER OF A MORT-
 GAGE  OR DEED OF TRUST ON THE PROPERTY SECURING INDEBTEDNESS ON THE REAL
 PROPERTY AT THE TIME OF EXECUTION OF A LOAN, INDICATING CONSENT  TO  THE
 LIEN  PLACED  ON THE REAL PROPERTY PURSUANT TO SUBDIVISION EIGHT OF THIS
 SECTION AND THAT IT DOES NOT CONSTITUTE AN EVENT OF  DEFAULT  UNDER  THE
 MORTGAGE OR DEED OF TRUST.
   7.  No  such  loan  shall  be  made for energy efficiency improvements
 unless determined to be appropriate through an energy  audit,  [and]  no
 such  loan shall be made for a renewable energy system unless determined
 to be feasible through a renewable energy system feasibility  study,  NO
 SUCH  LOAN SHALL BE MADE FOR WATER EFFICIENCY MEASURES UNLESS DETERMINED
 TO BE APPROPRIATE THROUGH A WATER EFFICIENCY STUDY, AND NO LOAN SHALL BE
 MADE FOR  RESILIENCY  IMPROVEMENTS  UNLESS  DETERMINED  TO  BE  FEASIBLE
 THROUGH  A RESILIENCY FEASIBILITY STUDY. UPON RECEIPT OF A CERTIFICATION
 FROM A QUALIFYING CONTRACTOR  CONDUCTING  THE  ENERGY  AUDIT,  RENEWABLE
 ENERGY  FEASIBILITY  STUDY, WATER EFFICIENCY STUDY, OR RESILIENCY FEASI-
 BILITY STUDY THAT THE PROPOSED IMPROVEMENTS ARE APPROPRIATE AND  SATISFY
 THE  CRITERIA  SET FORTH BY THE AUTHORITY, A MUNICIPAL CORPORATION SHALL
 ALLOW THE FINANCING OF THE FULL COST OF IMPROVEMENTS AND RELATED FINANC-
 ING AND ANCILLARY COSTS THAT  ARE  THE  SUBJECT  OF  THE  CERTIFICATION,
 SUBJECT ONLY TO THE LIMITS SET FORTH IN SUBDIVISION SIX OF THIS SECTION.
   8.  The  loan  made  under  the  sustainable energy loan program shall
 constitute a lien upon the real property benefitted by such  loan  PRIOR
 TO  ALL LIENS OTHER THAN LIENS FOR REAL PROPERTY TAXES, MUNICIPAL CHARG-
 ES, OR ANY OTHER MUNICIPAL LIENS.
   9. The municipal corporation may  require  the  loan  made  under  the
 sustainable  energy  loan  program  to  be  repaid by the property owner
 through a charge on the real property  benefitted  by  such  loan.  Such
 charge  shall  be on the real property and shall be levied and collected
 at the same time and in the same manner  as  municipal  taxes,  provided
 that  such  charge  shall  be  separately  listed  on  the tax bill, and
 provided further that in the event such charge should not be paid  in  a
 timely manner, no other municipal corporation shall be required to cred-
 it or otherwise guarantee the amount of such unpaid charge to the munic-
 ipal   corporation   which  authorized  the  loan,  notwithstanding  any
 provision of law to the contrary. TO THE EXTENT ANY SUCH CHARGE  IS  NOT
 PAID  WHEN  DUE,  THE DELINQUENT CHARGE MAY BE ENFORCED OR FORECLOSED TO
 S. 5974--A                          6
 
 THE EXTENT OF ANY UNPAID INSTALLMENT PAYMENTS. IN ANY EVENT OF  ENFORCE-
 MENT,  INCLUDING FORECLOSURE, THE BALANCE OF THE LIEN SHALL NOT ACCELER-
 ATE AND SHALL SURVIVE JUDGMENT. THE PROCEEDS RECEIVED IN  AN  ACTION  TO
 ENFORCE  AN UNPAID OR DELINQUENT CHARGE SHALL BE PAID FIRST TO OUTSTAND-
 ING REAL PROPERTY TAXES, MUNICIPAL CHARGES, OR OTHER MUNICIPAL LIENS.
   § 4. The New York state  energy  research  and  development  authority
 shall  publish revised guidelines for energy efficiency improvements and
 renewable energy systems in accordance with this act within 120 days  of
 the  effective  date of this act, and shall publish guidelines for water
 efficiency and resiliency improvements within 360 days of the  effective
 date  of this act. Such revised guidelines shall be effective as soon as
 adopted, however each sustainable energy loan program may process appli-
 cations received prior to the adoption date pursuant to existing  guide-
 lines  published  by  the authority. Notwithstanding the foregoing, each
 sustainable energy loan program may  apply  the  revised  guidelines  to
 energy  efficiency  improvements,  renewable energy systems, water effi-
 ciency improvements, and resiliency improvements placed  in  service  on
 the  subject  real  property  within  three  years  of  the  date of the
 execution of a loan made under  the  sustainable  energy  loan  program.
 Prior to publishing guidelines, the authority shall conduct public meet-
 ings to provide opportunities for public comment.
   § 5. This act shall take effect immediately.