Bill S4954B-2009

Authorizes municipalities to establish green loans programs to provide financing to residential property owners for solar and wind energy generating systems

Authorizes counties, cities, towns and villages to establish green loans programs to provide financing to residential property owners for the purchase and installation of solar energy generating systems and/or wind energy generating systems on such property and/or for the cost of the performance of an energy efficiency analysis of the dwelling on such property and the completion of energy efficiency improvements upon such dwelling by a licensed contractor; such loans shall be repaid from an annual tax levy on the property; a property owner shall be eligible for only one such loan.

Details

Actions

  • May 12, 2010: referred to energy
  • May 12, 2010: DELIVERED TO ASSEMBLY
  • May 12, 2010: PASSED SENATE
  • Mar 15, 2010: ADVANCED TO THIRD READING
  • Mar 11, 2010: 2ND REPORT CAL.
  • Mar 10, 2010: 1ST REPORT CAL.246
  • Jan 6, 2010: REFERRED TO LOCAL GOVERNMENT
  • Jul 16, 2009: COMMITTED TO RULES
  • Jul 9, 2009: AMENDED ON THIRD READING (T) 4954B
  • Jun 8, 2009: ADVANCED TO THIRD READING
  • Jun 4, 2009: 2ND REPORT CAL.
  • Jun 4, 2009: AMENDED (T) 4954A
  • Jun 3, 2009: 1ST REPORT CAL.618
  • Apr 27, 2009: REFERRED TO LOCAL GOVERNMENT

Votes

VOTE: COMMITTEE VOTE: - Local Government - Mar 10, 2010
Ayes (7): Stewart-Cousins, Oppenheimer, Valesky, Thompson, Johnson C, Little, Bonacic
Excused (1): Morahan

Memo

 BILL NUMBER:  S4954B

TITLE OF BILL : An act to amend the general municipal law, in relation to establishing the green loans program to provide financing for the purchase and installation of residential solar and wind energy generating systems, and for the performance of improvements to improve the energy efficiency of residential dwellings

PURPOSE OR GENERAL IDEA OF THE BILL : Authorizes municipalities to establish green loans programs to provide financing to residential property owners for solar and wind energy generating systems and authorizes the establishment of green homes programs to conduct residential energy audits.

SUMMARY OF PROVISIONS : Defines municipality, residential real property, residential solar energy generating system and residential wind energy generating system. The governing body of any municipality may, by local law or ordinance, establish a green loans and green homes program. Such a program shall provide municipal loans and financing to owners of residential real property within such municipality for all costs or any portion of the costs of purchasing and installing a residential solar energy generating system and/or a residential wind energy system upon the residential real property; and/or the cost of the performance of an energy efficiency analysis of the dwelling upon residential real property and the completion of energy efficiency improvements upon such dwelling by a licensed contractor.

Each such local law or ordinance shall provide for the terms and conditions for the awarding and repayment of loans and financing for residential solar energy generating systems and residential wind energy systems; provided, that all such loans and financing shall be repaid by means of twenty equal, annual charges imposed upon the subject residential real property at the same time other municipal real property taxes are imposed. Every loan issued pursuant to this section shall be subject to a fixed rate of interest established at the time of the granting of such loan.

Each such local law or ordinance shall provide for the terms and conditions for the awarding and repayment of loans and financing for the performance of energy efficiency analyses of dwelling upon residential real property and the completion of energy efficiency improvements upon such dwellings by certified contractors; provided, that all such loans and financing shall be repaid at an annual rate equal to the annual energy savings to the owner of the residential real property as a result of the energy efficiency improvements performed with the proceeds of the loans or financing and shall be paid at the same time other municipal real property taxes are imposed. Every loan issued pursuant to this section shall be subject to a fixed rate of interest established at the time of the granting of such loan.

JUSTIFICATION : In his annual State of the State address, Governor Paterson outlines his aggressive plan to meet 45% of New York State's electricity needs through clean renewable energy and improved energy efficiency by 2015. Installation of solar and wind energy systems can be cost effective. for many residential property owners with the existing state and federal subsidies, yet there are three major obstacles to widespread adoption of these technologies and this legislation addresses them at minimal expense to the State. These obstacles are: the high upfront cost, the ability to amortize the cost over 20 years, and, the possibility that those costs will not be recovered when the property is sold.

By providing access to low cost capital through "Green Loans", the taxpayers of New York will have access to lower cost capital than they might realize with traditional financing and preserve their home equity for other purposes. By amortizing the cost over 20 years, the annual cost will be less than annual savings, and by attaching the cost to a property tax, thereby eliminating the risk of recovering the expense when ownership of the property is transferred. By relying on the credit worthiness of the municipality and not the homeowner, "Green Loans' can spark the renewable energy sector and make significant step toward meeting our goals of "45 by 15".

LEGISLATIVE HISTORY : New bill.

FISCAL IMPLICATIONS : None.

EFFECTIVE DATE : This act shall take effect immediately.

Text

STATE OF NEW YORK ________________________________________________________________________ 4954--B Cal. No. 618 2009-2010 Regular Sessions IN SENATE April 27, 2009 ___________
Introduced by Sens. THOMPSON, FOLEY -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government -- reported favorably from said committee, ordered to first report, amended on first report, ordered to a second report and ordered reprinted, retaining its place in the order of 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 establishing the green loans program to provide financing for the purchase and installation of residential solar and wind energy generating systems, and for the performance of improvements to improve the energy effi- ciency of residential dwellings THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The general municipal law is amended by adding a new section 96-c to read as follows: S 96-C. GREEN LOANS PROGRAM. 1. FOR THE PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING DEFINITIONS: A. "MUNICIPALITY" MEANS A COUNTY, CITY, TOWN OR VILLAGE. B. "RESIDENTIAL REAL PROPERTY" MEANS REAL PROPERTY HAVING AN OWNER OCCUPIED DWELLING UNIT THEREON. C. "RESIDENTIAL SOLAR ENERGY GENERATING SYSTEM" MEANS AN ARRANGEMENT OR COMBINATION OF COMPONENTS INSTALLED ON RESIDENTIAL REAL PROPERTY THAT UTILIZES SOLAR RADIATION TO PRODUCE ENERGY DESIGNED TO PROVIDE HEATING, COOLING, HOT WATER AND/OR ELECTRICITY. SUCH TERM SHALL NOT INCLUDE EQUIPMENT THAT IS PART OF A NON-SOLAR ENERGY SYSTEM. D. "RESIDENTIAL WIND ENERGY GENERATING SYSTEM" MEANS AN ARRANGEMENT OR COMBINATION OF COMPONENTS INSTALLED ON RESIDENTIAL REAL PROPERTY, INCLUDING POWER CONDITIONING EQUIPMENT, DESIGNED TO PROVIDE ELECTRICITY OR MECHANICAL ENERGY THROUGH THE PROCESS OF CONVERTING WIND ENERGY INTO
MECHANICAL AND/OR ELECTRIC ENERGY, AND STORING OR DISTRIBUTING SUCH ENERGY. 2. THE GOVERNING BODY OF ANY MUNICIPALITY MAY, BY LOCAL LAW OR ORDI- NANCE, ESTABLISH A GREEN LOANS PROGRAM PURSUANT TO THIS SECTION USING MONIES MADE AVAILABLE FROM FEDERAL GRANTS AND OTHER MONIES THAT MAY BE USED FOR THE PURPOSES OF THIS PROGRAM. SUCH A PROGRAM SHALL PROVIDE MUNICIPAL LOANS AND FINANCING TO OWNERS OF RESIDENTIAL REAL PROPERTY WITHIN SUCH MUNICIPALITY FOR ALL COSTS OR ANY PORTION OF THE COSTS OF PURCHASING AND INSTALLING A RESIDENTIAL SOLAR ENERGY GENERATING SYSTEM AND/OR A RESIDENTIAL WIND ENERGY SYSTEM UPON THE RESIDENTIAL REAL PROP- ERTY; AND/OR THE COSTS OF THE PERFORMANCE OF AN ENERGY EFFICIENCY ANALY- SIS OF THE DWELLING UPON RESIDENTIAL REAL PROPERTY AND THE COMPLETION OF ENERGY EFFICIENCY IMPROVEMENTS UPON SUCH DWELLING BY A CERTIFIED CONTRACTOR. 3. EACH SUCH LOCAL LAW OR ORDINANCE SHALL PROVIDE FOR THE TERMS AND CONDITIONS FOR THE AWARDING AND REPAYMENT OF LOANS AND FINANCING FOR RESIDENTIAL SOLAR ENERGY GENERATING SYSTEMS AND RESIDENTIAL WIND ENERGY SYSTEMS; PROVIDED, THAT ALL SUCH LOANS AND FINANCING SHALL BE REPAID BY MEANS OF TWENTY EQUAL, ANNUAL CHARGES IMPOSED UPON THE SUBJECT RESIDEN- TIAL REAL PROPERTY AT THE SAME TIME OTHER MUNICIPAL REAL PROPERTY TAXES ARE IMPOSED. EVERY LOAN ISSUED PURSUANT TO THIS SECTION SHALL BE SUBJECT TO A FIXED RATE OF INTEREST ESTABLISHED AT THE TIME OF THE GRANTING OF SUCH LOAN. 4. EACH SUCH LOCAL LAW OR ORDINANCE SHALL PROVIDE FOR THE TERMS AND CONDITIONS FOR THE AWARDING AND REPAYMENT OF LOANS AND FINANCING FOR THE PERFORMANCE OF ENERGY EFFICIENCY ANALYSES OF DWELLINGS UPON RESIDENTIAL REAL PROPERTY AND THE COMPLETION OF ENERGY EFFICIENCY IMPROVEMENTS UPON SUCH DWELLINGS BY LICENSED CONTRACTORS; PROVIDED, THAT ALL SUCH LOANS AND FINANCING SHALL BE REPAID AT AN ANNUAL RATE EQUAL TO THE ANNUAL ENERGY SAVINGS TO THE OWNER OF THE RESIDENTIAL REAL PROPERTY AS A RESULT OF THE ENERGY EFFICIENCY IMPROVEMENTS PERFORMED WITH THE PROCEEDS OF THE LOANS OR FINANCING AND SHALL BE PAID AT THE SAME TIME OTHER MUNICI- PAL REAL PROPERTY TAXES ARE IMPOSED. EVERY LOAN ISSUED PURSUANT TO THIS SECTION SHALL BE SUBJECT TO A FIXED RATE OF INTEREST ESTABLISHED AT THE TIME OF THE GRANTING OF SUCH LOAN. 5. A MUNICIPALITY SHALL NOT PROVIDE LOANS OR FINANCING PURSUANT TO THIS SECTION TO AN OWNER OR OWNERS OF RESIDENTIAL REAL PROPERTY THAT HAVE RECEIVED A LOAN OR FINANCING FROM ANOTHER MUNICIPALITY PURSUANT TO THIS SECTION. S 2. This act shall take effect immediately.

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