NY Pub Auth L § 1896 (2021)
2021 New York Laws PBA - Public Authorities Article 8 - Miscellaneous Authorities Title 9-A - Green Jobs-Green New York Program 1896 - Green Jobs-Green New York Revolving Loan Fund.

§ 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  (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 available  to  provide  loans  to finance the cost of approved qualified energy efficiency services for residential structures  and  multi-family structures, and  (ii)  one  account which shall be maintained for monies made available to provide loans to  finance  the  cost  of  approved  qualified  energy efficiency  services for non-residential structures. The initial balance of the residential account  established  in  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;  (iii)  establish  an on-bill recovery mechanism for repayment of loans for the performance of qualified energy efficiency services for eligible projects 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, and such additional standards as the authority deems necessary; provided that  in order  to provide broad access to on-bill recovery, the authority shall, to the fullest extent  practicable,  consider  alternative  measures  of creditworthiness  that  are prudent in order to include participation by customers who are less likely to have access to traditional  sources  of financing;  (v)  to the extent feasible, make available on a pro rata basis, based on  the  number  of  electric  customers  within  the  utility   service territory,  to  combination  electric  and  gas  corporations that offer on-bill recovery pursuant to section sixty-six-m of the  public  service law  and  the  Long  Island power authority, up to five hundred thousand dollars to defray costs directly associated with changing  or  upgrading billing systems to accommodate on-bill recovery charges;  (vi)  within thirty days of closing of a loan to a customer, pay a fee of one hundred dollars per loan to  the  combination  electric  and  gas  corporation  in  whose  service territory such customer is located or to the Long Island power authority if  such  customer  is  located  in  the service  territory  of  that authority to help defray the costs that are directly associated with implementing the program;  (vii)  within  thirty  days  of closing of a loan to a customer, pay a servicing fee of one percent of  the  loan  amount  to  the  combination electric and gas corporation in whose service territory such customer is located  or  to  the  Long  Island  power  authority if such customer is located in the service territory of that authority to  help  defray  the costs that are directly associated with the program; and  (viii)  exercise  such  other  powers  as are necessary for the proper administration 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 developed by the authority;  (ii)  loans  shall  not exceed thirteen thousand dollars per applicant for  approved  qualified  energy  efficiency  services  for  residential structures,  and  twenty-six thousand dollars per applicant for approved qualified 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 structures  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;  (iii)  no  fees  or  penalties  shall  be  charged  or  collected  for prepayment 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 energy 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 assistance and other incentives from any other source for the  qualified energy  efficiency  services  which would be the subject of the loan. In determining 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 applicant 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 pursuant to eligibility  and  qualification  requirements  and  criteria established  by  the  authority. The authority shall establish standards for (i) qualified energy efficiency services, and (ii)  measurement  and verification  of energy savings. Such standards shall meet or exceed the  standards 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 deliverable fuels from participating in the program;  (ii)  the  authority  shall  establish  a  process  for  receipt   and resolution  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.  (f) Prior to or at the closing of each  loan  made  pursuant  to  this section,  the  authority  shall  cause  a  notice to be provided to each customer receiving such loan stating, in clear and conspicuous terms:  (i) the financial and legal obligations and risks  of  accepting  such loan responsibilities, including the obligation to provide or consent to the  customer's  utility  providing  the  authority  information  on the sources 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 significantly affect energy usage;  (ii) that the on-bill recovery charge will be billed by such  customer utility company and that failure to pay such on-bill recovery charge may result  in  the  customer  having  his  or  her  electricity  and/or gas terminated for non-payment, provided that such utility  company  follows the  requirements  of article two of the public service law with respect to residential customers;  (iii) that incurring such loan to undertake energy-efficiency projects may not result in  lower  monthly  energy  costs  over  time,  based  on additional factors that contribute to monthly energy costs;  (iv)  that the program is operated by the authority and 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.  (g) Any person entering into a loan agreement pursuant to this section shall have the right to cancel any such loan agreement until midnight of the fifth business day following the day on which such person signs such agreement provided the loan proceeds have not yet been disbursed.   3.  The authority shall evaluate the cost-effectiveness of the on-bill recovery  mechanism  on  an  on-going  basis.  (a)  In  conducting  such evaluation, the authority shall request each customer to provide:  (i)   information   on  energy  usage  and/or  permission  to  collect information 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.  (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  on-bill  recovery  program  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.  Qualified  energy  efficiency  services that have been paid for in whole or in part with the proceeds of a loan under this title  shall  be considered a special energy project pursuant to section eighteen hundred fifty-one of this article.   5.  (a)  For each loan issued for qualified energy efficiency services that is to be repaid through an on-bill recovery mechanism, the New York state energy research and development authority shall  record,  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 loan and stating the total amount of the loan, the term of the loan, and that the loan 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 loan repayment utility meter charge shall survive  changes  in  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 loan,  the  authority  shall file a declaration 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.