Establishes the green jobs-green New York on-bill financing program to provide monies for the purposes of the green jobs-green New York program

Summary of specific provisions

Section 1. Amends the Public Service Law (PSL) to exclude on-bill financing charges from a public utility company's gross operating revenues derived from intrastate utility operations.

Sections 2 and 3. Amend PSL to clarify that multiple family and two-family dwellings occupants may not be billed for any arrears of another incurring customer under the on-bill financing program.

Section 4. Provides that on-bill financing would not be subject to the provision of the PSL disallowing utilities from charging for services rendered more than six months prior.

Section 5. Amends the PSL to clarify that the rights and responsibilities of residential customers participating in on-bill financing shall be comparable to customers who are not participating in the program.

Section 6. Amends the PSL provision on complaint handling procedures, designating NYSERDA as the point of contact for complaints, and provides that utilities shall not terminate, disconnect, or suspend the customer's service for non-payment during pendency of a complaint and until fifteen days after NYSERDA informs the utility that the complaint has been resolved.

Section 7. Amends the PSL section on safe and adequate service and reasonable charges to clarify that service charges for the installation of capital improvements and fixtures to promote energy efficiency under the on-bill financing program are permitted.

Section 8. Establishes "Green jobs-green New York on-bill financing" under new Section 66-m of the PSL. Specifically:

Subsection 1. Green jobs-green New York on-bill financing program.

o Directs the Public Service Commission (Commission) to require gas and electric corporations to provide for billing and collection of on-bill charges pursuant to GJ/GNY. Utilities shall utilize existing billing procedures to the maximum extent practicable.

o Customers must be the utility company's customer of record to participate. Customers must also meet standards established by NYSERDA and must have executed an agreement and signed a note for repayment to receive energy efficiency services.

o Describes the on-bill mechanism, gives NYSERDA the task of notifying the utility company of charges and directing the utility company to bill for those charges. Allows the utility company to generate a separate bill for on-bill charges.

o Establishes the timeline for implementation as follows: the Commission is directed to work with utility companies over a ninety day period to develop rules and regulations that establish business practices, after which period utility companies shall submit a final implementation plan to the Commission within thirty days. The commission must thereafter approve, deny, or modify that plan within sixty days, and if the plan is disapproved, the utility company will have an additional thirty days to meet the requirements for approval. Utilities must then implement the program within eight months. A utility company may request one extension of up to two months if needed, and the Commission may choose to approve, deny, or modify that request.

o Authorizes NYSERDA to make reimbursement to utility companies for reasonable and necessary costs associated with implementation.

o Limits participation to one and one half percent of each utility company's total customers. Also authorizes NYSERDA to petition the Commission after three years to, based on a review of the program, increase the percentage of customers who may participate to two and one half percent.

o Commission may suspend program if it finds there is a significant increase in disconnections directly related to on-bill charges, or upon a finding of other good cause.

o 15% of energy savings realized will be designated to EEPS goals.

o Utility companies may terminate utility service for non-payment of such on-bill financing charges subject to the rights of the customer established under Article two of the PSL, except that payment of arrears of installments of on-bill financing charges may not be subject to a deferred payment agreement.

o If the customer underpays, the partial payment is first applied as payment for electric and/or gas services, and any remaining amount is applied to the on-bill financing charge.

o When the customer's utility account is closed, the balance of the loan is due and owing and collection is the responsibility of NYSERDA, still subject to customer protections available to customers of utility companies.

o A customer's participation in GJ/GNY shall not affect eligibility for any rebate or incentive offered by a utility company. Enables utility companies to extend to nonparticipating customers the same rebates that participating customers would receive.

o Master meters subject to an on-bill financing charge cannot be converted to submetering.

Subsection 2. Green jobs-green New York mortgage obligation.

o Prompts NYSERDA to write a mortgage for every GJ/GNY loan.

o Makes the GJ/GNY mortgage subordinate to the lien of any other mortgage.

o The mortgagee has no right to enforce payment or to foreclose upon the property.

o The mortgage is exempt from all recording taxes.

Section 9. Authorizes the program to be administered by LIPA.

Section 10. Amends the Public Authorities Law to allow late payment charges to be deposited into the revolving loan fund. Authorizes NYSERDA to enter into agreements with utility companies to establish the on-bill mechanism, to establish standards for customer participation, to provide adequate disclosures to all customers (language included), and to enter into agreements with state and federal agencies to directly receive rebates and grants to apply such funds to repayment of applicant loan obligations. Permits certain loans in excess of $13,000, with an overall ceiling of $25,000 for residential structures and $50,000 for non-residential structures and a pay-back period of 15 years. Prohibits fees or penalties for prepayment of loans. Also authorizes NYSERDA to determine cost-effectiveness of eligible projects, to establish a process for receipt and resolution of customer complaints, the ability to limit the availability of lighting measures or household appliances not permanently affixed to real property, and to implement ongoing evaluation of the cost-effectiveness of the on-bill financing program. Also requires that NYSERDA provide all customers with adequate disclosures and allows customers to cancel a contract within five business days of signing.

Section 11. Amends the Public Authorities Law to require that an annual report by NYSERDA be submitted to the PSC and participating utility companies.

Section 12. Amends the Public Authorities Law to require specific information to be included in NYSERDA's annual report, such as the cost of the program, the number of customers participating, the number of participating customers in arrears, and a description of the geographic distribution of loans made.

Section 13. Amends the real Property Law to establish seller's duty to inform potential buyer via a disclosure notice that the property is subject to a Green Jobs-Green !'Sew York loan. Any actual losses due to violation of this provision may be recovered from seller.

Sections 14 and 15. Amends the Public Authorities Law to efine rural electric cooperative and directs authorities to, in cooperation with rural electric cooperatives, develop and issue program opportunity notices or requests for proposals to solicit applications for funding under this program that would promote energy efficiency.

Sections 16-19. Addresses protections in place for activities regulated through the Administrative Code of the City of New York, the Emergency Tenant Protection Act of 1974, and the Emergency Housing Rent Control Law.

Section 20. Act shall take effect immediately with provisions.

Justification

In 2009, the Legislature adopted the landmark "Green Jobs Green New York Act" to spur the development of green collar jobs, increase installations of energy efficiency systems and improve our environment.

Green Jobs/Green New York was designed to create tens of thousands of jobs in the energy efficiency sector, but, the program has yet to reach its full potential. Additional financing, payment, and service mechanisms are needed to ensure that more New Yorkers can take advantage of the benefits of the program.

This bill authorizes the establishment of the on-bill financing and payment mechanism by leveraging funds available to NYSERDA through the Regional Greenhouse Gas Initiative to provide low interest loans through private lenders. Importantly, this bill takes a measured approach, by placing a cap on the number of utility customers who can access the program, and grants greater flexibility to investor-owned utilities in the implementation of the mechanism. This bill also provides additional consumer protections, by adding disclosure statements in customer contracts, requiring notice of on-bill financing to potential property buyers, and by preserving those rights enjoyed by customers of utility companies throughout the process. This bill will begin to unlock the vast potential of green

jobs in New York State while reducing our carbon footprint, by implementing a new and innovative program that will spur job creation while requiring prudent safeguards and reporting requirements to ensure that the money invested in this program is in fact invested wisely.

Prior legislative history

This is a new bill.

Fiscal implications for state and local governments

None.

Effective date

This act shall take effect immediately, with provisions.