What's happening
This bill extends the maximum term for school district energy performance contracts from eighteen to twenty-five years for guaranteed cost recovery.
Why it matters
School districts will have more flexibility to finance major energy efficiency projects, since a longer payback period (up to 25 years) allows for larger or more comprehensive upgrades that might not be affordable under an 18-year limit.
By extending the contract term, districts can potentially undertake projects with higher upfront costs—such as solar panels, HVAC overhauls, or building envelope improvements—since the energy savings over a longer period can cover the investment.
The change could make energy performance contracts more appealing to both schools and energy service companies, possibly increasing the adoption of green technologies and reducing long-term operational costs for schools.
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Extend School Energy Contracts
Plain English, a few words. Used as the page title.
Sponsors
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History
- Referred to education
- Referred to education
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.
Extend School Energy Contracts
In Assembly Committee · Education · Sponsor Judy Griffin
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5099
2019-2020 Regular Sessions
IN SENATE
April 9, 2019
Introduced by Sen. MARTINEZ -- read twice and ordered printed, and when printed to be committed to the Committee on Education
AN ACT to amend the education law, in relation to extending the time period for guaranteed recovery of energy performance contract costs from energy savings incurred by school districts
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subclause C of clause (i) of subparagraph 5 of paragraph i of subdivision 6 of section 3602 of the education law, as amended by section 1 of part F of chapter 383 of the laws of 2001, is amended to read as follows:
C. The energy performance contractor shall guarantee recovery of contract costs from energy savings realized by the school district during the term of the energy performance contract, which shall not exceed [eighteen] twenty-five years.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11119-01-9
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the education law, in relation to extending the time period for guaranteed recovery of energy performance contract costs from energy savings incurred by school districts
Purpose
This would extend the time period for energy performance contracts from 18 years to 25 years.
Summary of provisions
Section 1. Amend the statutory limit of energy performance contracts from 18 years to 25 years.
Section 2. Effective Date
Justification
Energy performance contracts have been a successful way for munici- palities and school districts to lower their costs while improving effi- ciency. Energy performance contracts use the projected savings from the performance contract to pay for the project, which is often significant- ly cheaper than the previous energy costs.
Current state law requires that energy performance contracts must guar- antee the recovery of contract costs from recovery savings during the term of the contract, which shall not exceed 18 years. This legislation would allow contracts to not exceed more than 25 years.
Federal government allows for contracts up to 25 years. This would provide parity for school districts to take advantage of energy perform- ance contracts up to 25 years.
Such a change would have numerous benefits such as energy efficiency and reducing operating costs. These contracts help schools avoid significant upfront costs and allow for reinvestments over time. Furthermore, contracts usually result in reduced maintenance costs and reduce the number of emergency repairs.
Prior legislative history
None.
Fiscal implications
To be determined.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.