Creates a commercial on-bill repayment program

Title of bill

An act to amend the public authorities law, the public service law and the real property law, in relation to establishing the "Commercial on-bill repayment act of 2016"

Purpose

To authorize on-bill repayment for energy efficiency and distributed generation projects on commercial properties.

Summary of provisions

Section 1 of the bill outlines the legislative findings.

Section 2 of the bill amends the Public Authorities Law by adding a new title 9B to be known as the "Commercial On-Bill Repayment Program."

Section 3 amends the Public Authorities Law to allow NYSERDA to issue rules and regulations for Title 9-B, the "Commercial On-Bill Repayment Act of 2016."

Section 4 amends the Public Service Law to exclude on-bill recovery charges from any determination of a participating utility's gross operating revenues.

Section 5 amends the Public Service Law to allow, but not require, gas corporations to establish on-bill recovery charges for customers participating in the Commercial On-Bill Repayment program.

Section 6 amends the Public Service Law by adding a new section 66-0 to investigate program implementation. It also creates an Advisory Council to advise NYSERDA on the creation and implementation of the program.

Section 7 renumbers sections 1020-ii, 1020-jj and 1020-kk of the Public Authorities Law to 1020-jj, 1020-kk and 1020-ll and adds a new section 1020-ii which establishes a program to provide for the billing and collection of on-bill repayment charges for payment of obligation of its customers to the commercial on-bill repayment program.

Section 8 would amend the Real Property Law by requiring disclosure of the "Commercial On-bill Repayment Charge" upon sale of the property.

Section 9 would amend the Real Property Law to require NYSERDA to record the loan. Section 10 provides the effective date.

Justification

This legislation will create an on-bill repayment (OBR) program allowing consumers to finance energy efficiency and distributed generation projects on commercial properties. The up-front financing will be provided by private lenders and investors, at low rates of interest, and repaid over time as a part of the customer's utility bill.

On-bill repayment facilitates the financing of clean energy projects through the utility bill, which can allow for more affordable financing terms than would be otherwise available due to the security of utility bill payments. On-bill repayment will incentivize private investors to invest in clean energy improvements in New York, will stimulate the state's economy by creating jobs for contractors and other persons who complete new energy improvements, and attract clean energy manufacturing facilities and related jobs to the state. On-bill repayment has been available for residential customers since 2012. However, unlike the residential program, the commercial program will rely solely on private investment without the use of any taxpayer or ratepayer money.

Allowing on-bill repayment for commercial properties will result in more energy efficiency and distributed generation projects being completed, often at a larger scale than residential projects. This benefits the state by increasing clean energy production and reducing the need for emissions-producing power.

Legislative history

New in Senate/A. 10038 referred to Energy.

Fiscal implications

None.

Effective date

Immediate.