What's happening
This bill amends the municipal sustainable energy loan program to expand funding sources and set different loan limits for commercial and individual property owners.
Why it matters
Expands funding sources for sustainable energy loans. By allowing municipalities to use not just federal funds, but also state funds and resources from state authorities, the bill could make more money available for property owners to access loans for energy efficiency and renewable energy projects.
Differentiates loan limits based on property owner type. Commercial entities, nonprofits, and other organizations will have their loan limits set by the municipality based on factors like property value, savings, project cost, and existing debt, offering greater flexibility and potentially larger project financing compared to individuals.
Maintains stricter limits for individuals. Individual property owners remain subject to a clear maximum—loans cannot exceed 10% of property value or the actual project cost—providing consumer protection and reducing the risk of over-leveraging.
May encourage broader participation in clean energy upgrades. By tailoring loan terms to different owner types and increasing funding sources, the bill could help accelerate adoption of renewable energy and energy efficiency improvements across both residential and commercial sectors.
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Who cares
Headline styles
Fund Clean Energy Loans
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Signed chap.320
- Delivered to governor
- Returned to senate
- Passed assembly
- Ordered to third reading rules cal.400
- Substituted for A7394A
- Referred to ways and means
- Delivered to assembly
- Passed senateVote 63–0
- Advanced to third reading
- 2nd report cal.
- Amended 5990a
Show 2 earlier actions
- 1st report cal.1353
- Referred to energy and telecommunications
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Fund Green Energy Loans
Assembly Floor Calendar · Sponsor Amy Paulin
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5990--A Cal. No. 1353
2017-2018 Regular Sessions
IN SENATE
May 9, 2017
Introduced by Sen. GRIFFO -- read twice and ordered printed, and when printed to be committed to the Committee on Energy and Telecommunications -- 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
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 Assembly, do enact as follows:
Section 1. Subdivision 6 of section 119-ff of the general municipal law, as added by chapter 497 of the laws of 2009, is amended to read as follows:
6. "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.
§ 2. Subdivisions 1 and 6 of section 119-gg of the general municipal law, as added by chapter 497 of the laws of 2009, are amended to read as follows:
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.
6. [The] 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 requirements on the maximum amount that may be borrowed through such
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11056-05-7
S. 5990--A 2
loan, which may consider factors including but not limited to the property value, projected savings, project cost, and existing indebtedness secured by such property.
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, including the costs of necessary equipment, materials, and labor, the costs of each related energy audit and renewable energy system feasibility study, and the cost of verification of such renewable energy system and energy efficiency improvements.
§ 3. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the general municipal law, in relation to the municipal sustainable energy loan program
Purpose or general idea of bill
To address challenges that have arisen in the municipal sustainable energy loan program.
Summary of specific provisions
Section one amends subdivision 6 of section 119-ff of the general municipal law to remove the requirement that the renewable energy system be used primarily at such property when the owner of the real property is a commercial entity.
Section two amends section 119-gg of the general municipal law to allow the municipal sustainable energy loan program to be established using monies available from the state or any state authority as defined by section two of the public authorities law. This section also provides that 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 requirements on the maximum amount that maybe borrowed.
Section three provides the effective date.
Justification
The municipal sustainable energy loan program, also known as property assessed clean energy or "PACE," provides financing to property owners for the installation of renewable energy systems and energy efficiency measures, which is repaid as a charge on the municipal property tax bill.
Since the first PACE- financed project was completed in 2015, three barriers have been identified that have prevented the program from reaching its full potential. First, the statute requires that renewable energy must be "used primarily at such property," which has prevented the use of PACE for remote net-metered and community solar projects. Second, the statute requires the municipality to use federal grants or federal credit support to fund the loan program. However, federal assistance is not always available, or often has restrictions attached to it, which has prevented additional municipalities from participating in the program. Third, the statute requires that the amount of the loan shall not exceed ten percent of the appraised value of the real property. While this is not a problem in areas of the state with high property values, in many upstate communities, this ten percent cap prevents valuable projects from moving forward. The bill would create a more flexible standard to apply only for commercially-owned property.
Removing these three barriers will enable the PACE program to expand, financing more renewable energy and energy efficiency projects. It is a valuable tool for helping the State reach its renewable energy goals, and with these modifications, more properties will be able to use it.
Prior legislative history
This is a new bill.
Fiscal implication
None. EFFECTIVE DATE : Immediate.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.