S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         3941
                              2015-2016 Regular Sessions
                                   I N  S E N A T E
                                   February 23, 2015
                                      ___________
       Introduced  by  Sen.  GRIFFO -- read twice and ordered printed, and when
         printed to be committed to the Committee on  Energy  and  Telecommuni-
         cations
       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 2015"
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. Legislative findings. The legislature  finds  and  declares
    2  that promoting widespread dissemination of energy conservation and clean
    3  energy  technologies  represents a clear and cost-effective strategy for
    4  building owners and occupants in New York state to curtail the  emission
    5  of  greenhouse  gases and harmful air contaminants, reducing the state's
    6  contribution to climate change, reducing dependence on fossil fuels, and
    7  creating green jobs to sustain and enhance our economy. However, lack of
    8  affordable and accessible financing for many owners of commercial build-
    9  ings has hindered progress in fully realizing the promise of these tech-
   10  nologies. On-bill repayment facilitates the financing  of  clean  energy
   11  projects  through  the utility bill, which can allow for more affordable
   12  financing terms than would be otherwise available due to the security of
   13  utility bill payments. On-bill repayment will incentivize private inves-
   14  tors to invest in clean energy improvements in New York, will  stimulate
   15  the  state's  economy by creating jobs for contractors and other persons
   16  who complete new energy improvements, and will reinforce the  leadership
   17  role  of  the  state in the new energy economy, thereby attracting clean
   18  energy manufacturing facilities and related jobs to the  state.  On-bill
   19  repayment  expands  access  to  clean energy upgrades without relying on
   20  public funding.
   21    Therefore, it is the intent of the legislature to enact a  "Commercial
   22  On-Bill  Repayment"  program  to  animate  the  market  for clean energy
   23  improvements and accelerate the flow of private capital into clean ener-
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD04873-04-5
       S. 3941                             2
    1  gy projects, and thus achieve significant reductions in  greenhouse  gas
    2  emissions  and  toxic  emissions well above the level of reductions that
    3  would be achieved through business as usual.
    4    S  2.  Article  8 of the public authorities law is amended by adding a
    5  new title 9-B to read as follows:
    6                                   TITLE 9-B
    7                    COMMERCIAL ON-BILL REPAYMENT PROGRAM
    8  SECTION 1900. SHORT TITLE.
    9          1901. DEFINITIONS.
   10          1902. PURPOSE.
   11          1903. ADMINISTRATION BY THE AUTHORITY.
   12          1904. COMMERCIAL ON-BILL REPAYMENT PROGRAM.
   13          1905. ADVISORY COUNCIL.
   14          1906. ANNUAL REPORTING.
   15          1907. FUNDS, ADMINISTRATION AND EVALUATION AND COORDINATION.
   16    S 1900. SHORT TITLE. THIS TITLE SHALL BE KNOWN AND MAY BE CITED AS THE
   17  "COMMERCIAL ON-BILL REPAYMENT ACT OF 2015".
   18    S 1901. DEFINITIONS. AS USED IN THIS TITLE, THE FOLLOWING TERMS  SHALL
   19  HAVE THE FOLLOWING MEANINGS:
   20    1.  "APPLICANT" MEANS A PERSON WHO OWNS, LEASES OR MANAGES AN ELIGIBLE
   21  STRUCTURE OR A PORTION OF  SUCH  ELIGIBLE  STRUCTURE  AND  WHO  HAS  THE
   22  AUTHORITY  TO  CONTRACT  FOR  THE  PROVISION  OF  QUALIFIED CLEAN ENERGY
   23  IMPROVEMENTS TO SUCH ELIGIBLE STRUCTURE  OR  PORTION  OF  SUCH  ELIGIBLE
   24  STRUCTURE.
   25    2.  "AUTHORITY"  SHALL  HAVE THE SAME MEANING AS IN SUBDIVISION TWO OF
   26  SECTION EIGHTEEN HUNDRED FIFTY-ONE OF THIS ARTICLE.
   27    3. "COMMERCIAL STRUCTURE" MEANS A BUILDING OTHER THAN  A  NON-RESIDEN-
   28  TIAL STRUCTURE, MULTI-FAMILY STRUCTURE, OR RESIDENTIAL STRUCTURE.
   29    4.  "DISTRIBUTION UTILITY" MEANS A COMBINATION ELECTRIC AND GAS CORPO-
   30  RATION HAVING ANNUAL REVENUES IN EXCESS OF TWO HUNDRED  MILLION  DOLLARS
   31  AND THE LONG ISLAND POWER AUTHORITY.
   32    5.  "MULTI-FAMILY  STRUCTURE"  MEANS  A MULTI-FAMILY STRUCTURE AS SUCH
   33  TERM IS DEFINED IN SECTION EIGHTEEN HUNDRED NINETY-ONE OF THIS ARTICLE.
   34    6. "NON-RESIDENTIAL STRUCTURE" MEANS A  NON-RESIDENTIAL  STRUCTURE  AS
   35  SUCH  TERM  IS  DEFINED  IN  SECTION EIGHTEEN HUNDRED NINETY-ONE OF THIS
   36  ARTICLE.
   37    7. "ELIGIBLE PROJECT" MEANS QUALIFIED CLEAN ENERGY IMPROVEMENTS FOR AN
   38  ELIGIBLE STRUCTURE.
   39    8. "ELIGIBLE STRUCTURE" MEANS (A) A  COMMERCIAL  STRUCTURE  OR  (B)  A
   40  NON-RESIDENTIAL STRUCTURE.
   41    9.  "OBR  AGREEMENT"  MEANS A STANDARD WRITTEN AGREEMENT EXECUTED BY A
   42  DISTRIBUTION UTILITY CUSTOMER OF RECORD  WITH  RESPECT  TO  THE  SUBJECT
   43  PROPERTY,  THE  OWNER  OF THE SUBJECT PROPERTY AND AN OBR PARTNER OR ITS
   44  AGENT GOVERNING THE TERMS OF AN OBR OBLIGATION.
   45    10. "OBR MASTER SERVICER" MEANS AN ENTITY RETAINED BY THE AUTHORITY TO
   46  IMPLEMENT THE TASKS SET FORTH IN SECTION NINETEEN HUNDRED FOUR  OF  THIS
   47  TITLE.
   48    11.  "OBR  MASTER  SERVICER AGREEMENT" MEANS AN AGREEMENT DEVELOPED BY
   49  THE AUTHORITY AS PROVIDED IN  SECTION  NINETEEN  HUNDRED  FOUR  OF  THIS
   50  TITLE.
   51    12. "OBR OBLIGATION" MEANS AN OBLIGATION TO REPAY A FINANCING PROVIDED
   52  TO A UTILITY CUSTOMER FOR THE INSTALLATION OF AN ELIGIBLE PROJECT PURSU-
   53  ANT  TO AN ON-BILL REPAYMENT PROGRAM. AN OBR OBLIGATION WILL EXIST WHERE
   54  A FINANCING PURSUANT TO AN OBR AGREEMENT HAS BEEN APPROVED  BY  THE  OBR
   55  MASTER SERVICER AND HAS NOT BEEN SATISFIED.
       S. 3941                             3
    1    13.  "OBR  PARTNER"  MEANS  A PERSON OR ENTITY PROVIDING FINANCING FOR
    2  QUALIFIED CLEAN ENERGY IMPROVEMENTS PURSUANT TO THE  COMMERCIAL  ON-BILL
    3  REPAYMENT  PROGRAM  WHICH  ENTERS INTO AN OBR MASTER SERVICER AGREEMENT.
    4  OBR PARTNERS MAY INCLUDE, BUT ARE NOT LIMITED  TO,  BANKS,  SAVINGS  AND
    5  LOAN  INSTITUTIONS, CREDIT UNIONS, PROJECT DEVELOPERS, OR ENERGY SERVICE
    6  COMPANIES. FINANCING MAY BE PROVIDED IN THE FORM OF A LOAN, LEASE, POWER
    7  PURCHASE AGREEMENT, ENERGY SERVICE AGREEMENT, OR OTHER FINANCING  STRUC-
    8  TURE APPROVED BY THE AUTHORITY.
    9    14.  "ON-BILL REPAYMENT CHARGE" MEANS A CHARGE, CONSTITUTING REPAYMENT
   10  OF ALL OR A PORTION OF ANY OBR OBLIGATION, THAT IS INCLUDED ON A UTILITY
   11  BILL.
   12    15. "PROGRAM" MEANS THE COMMERCIAL ON-BILL REPAYMENT  PROGRAM  CREATED
   13  BY THIS TITLE.
   14    16.  "QUALIFIED CLEAN ENERGY IMPROVEMENTS" MEANS IMPROVEMENTS, INCLUD-
   15  ING CLEAN ENERGY RESOURCES SUCH AS ENERGY EFFICIENCY, RENEWABLE  ENERGY,
   16  COMBINED HEAT AND POWER, DEMAND RESPONSE, AND ANY OTHER LOW-CARBON ENER-
   17  GY  TECHNOLOGY  REASONABLY  DESIGNATED BY THE AUTHORITY, THAT ARE PERMA-
   18  NENTLY AFFIXED TO REAL PROPERTY AND MEET  COST  EFFECTIVENESS  STANDARDS
   19  ESTABLISHED BY THE AUTHORITY.
   20    17. "RESIDENTIAL STRUCTURE" MEANS A RESIDENTIAL STRUCTURE AS SUCH TERM
   21  IS DEFINED IN SECTION EIGHTEEN HUNDRED NINETY-ONE OF THIS ARTICLE.
   22    S  1902.  PURPOSE. THERE IS HEREBY CREATED A COMMERCIAL ON-BILL REPAY-
   23  MENT PROGRAM. THE PURPOSE OF THE PROGRAM IS TO:
   24    1. PROMOTE ENERGY EFFICIENCY, ENERGY CONSERVATION AND THE INSTALLATION
   25  OF CLEAN ENERGY TECHNOLOGIES;
   26    2. REDUCE ENERGY CONSUMPTION AND ENERGY COSTS;
   27    3. REDUCE GREENHOUSE GAS EMISSIONS;
   28    4. CREATE GREEN JOB OPPORTUNITIES; AND
   29    5. PROMULGATE A REPLICABLE, SCALABLE APPROACH TO FINANCING CLEAN ENER-
   30  GY PROJECTS FOR THE PURPOSE OF ANIMATING THE MARKET  FOR  SUCH  PROJECTS
   31  AND ACCELERATING THE FLOW OF CAPITAL INTO SUCH PROJECTS.
   32    S  1903. ADMINISTRATION BY THE AUTHORITY. WITHIN THREE HUNDRED DAYS OF
   33  THE EFFECTIVE DATE OF THIS TITLE, THE AUTHORITY IS HEREBY AUTHORIZED AND
   34  DIRECTED TO ESTABLISH AND ADMINISTER THE  COMMERCIAL  ON-BILL  REPAYMENT
   35  PROGRAM.  THE AUTHORITY SHALL IMPLEMENT THE PROGRAM IN CONSULTATION WITH
   36  THE DEPARTMENT OF PUBLIC SERVICE, THE POWER AUTHORITY OF  THE  STATE  OF
   37  NEW  YORK,  THE  LONG ISLAND POWER AUTHORITY, THE DEPARTMENT OF ECONOMIC
   38  DEVELOPMENT AND THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION.
   39    S 1904. COMMERCIAL ON-BILL REPAYMENT PROGRAM. 1. (A) THERE  IS  HEREBY
   40  CREATED A COMMERCIAL ON-BILL REPAYMENT PROGRAM.
   41    (B)  IN  ADMINISTERING  SUCH  PROGRAM, THE AUTHORITY IS AUTHORIZED AND
   42  DIRECTED TO:
   43    (I) ENTER INTO CONTRACTS WITH ONE  OR  MORE  PROGRAM  IMPLEMENTERS  TO
   44  PERFORM SUCH FUNCTIONS AS THE AUTHORITY DEEMS APPROPRIATE;
   45    (II) RETAIN THE SERVICES OF A MASTER SERVICER;
   46    (III) DEVELOP, IN CONSULTATION WITH THE DISTRIBUTION UTILITIES AND THE
   47  DEPARTMENT  OF  PUBLIC  SERVICE,  AN  OBR MASTER SERVICER AGREEMENT THAT
   48  INCLUDES, BUT IS NOT LIMITED TO, PROVISIONS REGARDING THE FOLLOWING:
   49    (1) PROTOCOLS FOR COMMUNICATION BETWEEN AND AMONG  THE  OBR  PARTNERS,
   50  THE DISTRIBUTION UTILITIES AND THE OBR MASTER SERVICER;
   51    (2) APPROVAL BY THE MASTER SERVICER OF OBR AGREEMENTS, UPON SUBMISSION
   52  OF  CONFORMING  AGREEMENTS BY OBR PARTNERS ALONG WITH CERTIFICATION BY A
   53  LICENSED ENGINEER THAT THE WORK SCOPE FINANCED UNDER THE  OBR  AGREEMENT
   54  CONFORMS  WITH  STANDARDS  SET  BY  THE  AUTHORITY AND THAT THE WORK WAS
   55  COMPLETED AND CERTIFICATION BY THE OBR PARTNER THAT THE NOTICE  REQUIRED
       S. 3941                             4
    1  BY PARAGRAPH (B) OF SUBDIVISION TWO OF THIS SECTION WAS DELIVERED TO THE
    2  APPLICANT;
    3    (3)  BILLING  AND  COLLECTION  OF  ON-BILL  REPAYMENT  CHARGES  BY THE
    4  DISTRIBUTION UTILITIES AND PAYMENT OF SUCH CHARGES TO THE OBR PARTNERS;
    5    (4) DEFAULTS IN PAYMENT BY APPLICANTS;
    6    (5) HANDLING OF DISPUTES AND COMPLAINTS BY PARTICIPANTS IN THE COMMER-
    7  CIAL OBR PROGRAM, PROVIDED THAT WITH RESPECT TO DISPUTES AND  COMPLAINTS
    8  INVOLVING  OBR  OBLIGATIONS  RELATING  TO ELIGIBLE STRUCTURES OTHER THAN
    9  COMMERCIAL STRUCTURES, THE AUTHORITY SHALL BE RESPONSIBLE FOR  RESOLVING
   10  SUCH  COMPLAINTS  AND  DISPUTES,  AND  THAT WITH RESPECT TO DISPUTES AND
   11  COMPLAINTS INVOLVING OBR OBLIGATIONS RELATING TO COMMERCIAL  STRUCTURES,
   12  SUCH MATTERS SHALL BE ADDRESSED THROUGH BINDING ARBITRATION.
   13    (6)  PAYMENT  OF A FEE BY THE OBR PARTNER WITHIN THIRTY DAYS OF INITI-
   14  ATION OF AN ON-BILL REPAYMENT CHARGE OF  ONE  HUNDRED  DOLLARS  PER  OBR
   15  OBLIGATION  TO  THE DISTRIBUTION UTILITY IN WHOSE SERVICE TERRITORY SUCH
   16  CUSTOMER IS LOCATED TO HELP DEFRAY THE COSTS THAT ARE  DIRECTLY  ASSOCI-
   17  ATED WITH IMPLEMENTING THE PROGRAM;
   18    (7)  PAYMENT  OF  A  FEE  BY THE OBR PARTNER WITHIN THIRTY DAYS OF THE
   19  INITIATION OF THE ON-BILL REPAYMENT CHARGE  TO  THE  AUTHORITY  TO  HELP
   20  DEFRAY THE COSTS THAT ARE DIRECTLY ASSOCIATED WITH THE PROGRAM;
   21    (8)  PAYMENT  OF A FEE BY THE OBR PARTNER WITHIN THIRTY DAYS OF INITI-
   22  ATION OF THE ON-BILL REPAYMENT CHARGE OF ONE QUARTER OF ONE  PERCENT  OF
   23  THE  AMOUNT  OF  THE OBR OBLIGATION TO THE DISTRIBUTION UTILITY IN WHOSE
   24  SERVICE TERRITORY SUCH CUSTOMER IS LOCATED TO HELP DEFRAY THE COSTS THAT
   25  ARE DIRECTLY ASSOCIATED WITH THE PROGRAM;
   26    (9) PAYMENT OF A FEE BY THE OBR PARTNER  TO  THE  MASTER  SERVICER  AS
   27  REQUIRED BY THE AGREEMENT BETWEEN THE AUTHORITY AND THE MASTER SERVICER;
   28  AND
   29    (10)  PAYMENT  OF  A  FEE BY THE OBR PARTNER TO THE MASTER SERVICER AS
   30  REQUIRED BY THE AGREEMENT BETWEEN THE AUTHORITY AND THE MASTER  SERVICER
   31  FOR  FEES  ASSOCIATED WITH RECORDING THE DECLARATION AND SATISFACTION OF
   32  THE OBR OBLIGATION.
   33    (IV) ESTABLISH GUIDANCE CONCERNING  QUALIFIED  CLEAN  ENERGY  IMPROVE-
   34  MENTS;
   35    (V)  ESTABLISH COST EFFECTIVENESS STANDARDS FOR SUCH IMPROVEMENTS. THE
   36  COST-EFFECTIVENESS OF AN ELIGIBLE PROJECT SHALL BE EVALUATED  SOLELY  ON
   37  THE BASIS OF THE COSTS AND PROJECTED SAVINGS TO THE APPLYING CUSTOMER OR
   38  SUCH  OTHER  PARTY  AS MAY STEP INTO THE SHOES OF THE APPLYING CUSTOMER,
   39  USING AN ENGINEERING PROCESS THAT INCORPORATES BEST PRACTICES AS  DETER-
   40  MINED  BY  THE  AUTHORITY  FOR  (1) STANDARD BASELINING, INCLUDING PRIOR
   41  BILLING DATA AND USAGE PATTERNS, (2) SAVINGS  PROJECTIONS,  (3)  DESIGN,
   42  CONSTRUCTION AND COMMISSIONING, (4) OPERATIONS, MAINTENANCE AND MONITOR-
   43  ING,  AND  (5) MEASUREMENT AND VERIFICATION; PROVIDED HOWEVER THAT BASED
   44  UPON THE MOST RECENT CUSTOMER DATA AVAILABLE, ON  AN  ANNUALIZED  BASIS,
   45  THE MONTHLY ON-BILL REPAYMENT AMOUNT FOR A PACKAGE OF MEASURES SHALL NOT
   46  EXCEED ONE-TWELFTH OF THE SAVINGS PROJECTED TO RESULT FROM THE INSTALLA-
   47  TION  OF  THE  MEASURES  PROVIDED  FURTHER  THAT NOTHING HEREIN SHALL BE
   48  CONSTRUED TO PROHIBIT OR PREVENT CUSTOMERS WHOSE PRIMARY HEATING  ENERGY
   49  SOURCE IS FROM DELIVERABLE FUELS FROM PARTICIPATING IN THE PROGRAM; AND
   50    (VI) ESTABLISH REQUIREMENTS FOR ONGOING DISCLOSURE TO THE AUTHORITY OF
   51  (A)  SELECTED  DATA  CONCERNING  THE ENERGY, ENVIRONMENTAL AND FINANCIAL
   52  OUTCOMES  OF  QUALIFIED  ENERGY  PROJECTS  IMPLEMENTED  WITH   FINANCING
   53  PROVIDED THROUGH THE COMMERCIAL OBR PROGRAM AND (B) ALL INFORMATION THAT
   54  THE  AUTHORITY  SHALL BE REQUIRED TO INCLUDE IN ITS ANNUAL REPORT TO THE
   55  GOVERNOR, THE TEMPORARY PRESIDENT OF THE  SENATE,  THE  SPEAKER  OF  THE
   56  ASSEMBLY,  THE  MINORITY LEADER OF THE SENATE AND THE MINORITY LEADER OF
       S. 3941                             5
    1  THE ASSEMBLY  CONCERNING  THE  AUTHORITY'S  ACTIVITIES  RELATED  TO  THE
    2  COMMERCIAL  ON-BILL  REPAYMENT  PROGRAM AS SET FORTH IN SECTION NINETEEN
    3  HUNDRED SEVEN OF THIS TITLE; AND
    4    (VII)  EXERCISE  SUCH  OTHER POWERS AS ARE NECESSARY OR CONVENIENT FOR
    5  THE PROPER ADMINISTRATION OF THE PROGRAM, INCLUDING, AT  THE  DISCRETION
    6  OF THE AUTHORITY, ENTERING INTO AGREEMENTS WITH APPLICANTS AND WITH SUCH
    7  STATE  OR  FEDERAL AGENCIES AS NECESSARY TO DIRECTLY RECEIVE REBATES AND
    8  GRANTS AVAILABLE FOR ELIGIBLE PROJECTS AND APPLY SUCH FUNDS TO REPAYMENT
    9  OF APPLICANT OBR OBLIGATIONS.
   10    2. (A) APPLICANTS SEEKING TO PARTICIPATE IN THE COMMERCIAL OBR PROGRAM
   11  SHALL ARRANGE TO OBTAIN, FROM  OBR  PARTNERS,  FINANCING  FOR  QUALIFIED
   12  CLEAN  ENERGY  IMPROVEMENTS.  EACH  OBR  PARTNER SHALL ESTABLISH ITS OWN
   13  CREDIT STANDARDS FOR SUCH FINANCING; AND THE AUTHORITY SHALL ESTABLISH A
   14  PROCESS FOR RECEIPT AND RESOLUTION  OF  CUSTOMER  COMPLAINTS  CONCERNING
   15  ON-BILL  REPAYMENT  CHARGES  ARISING  FROM  OBR  OBLIGATIONS RELATING TO
   16  ELIGIBLE STRUCTURES OTHER THAN COMMERCIAL STRUCTURES AND FOR  ADDRESSING
   17  DELAYS  AND DEFAULTS IN CUSTOMER PAYMENTS WITH RESPECT TO SUCH OBR OBLI-
   18  GATIONS.
   19    (B) PRIOR TO THE APPROVAL BY  THE  AUTHORITY  OF  EACH  OBR  AGREEMENT
   20  ENTERED  INTO  BY AN APPLICANT PURSUANT TO THIS SECTION, THE OBR PARTNER
   21  SHALL CAUSE TO BE PROVIDED TO EACH APPLICANT PROPOSING TO INCUR SUCH OBR
   22  OBLIGATION A NOTICE STATING, IN CLEAR AND CONSPICUOUS TERMS:
   23    (I) THE FINANCIAL AND LEGAL OBLIGATIONS AND RISKS OF PUTTING IN  PLACE
   24  THE  OBR  OBLIGATION,  INCLUDING THE OBLIGATION TO PROVIDE OR CONSENT TO
   25  THE CUSTOMER'S UTILITY PROVIDING THE AUTHORITY INFORMATION ON THE SOURC-
   26  ES AND QUANTITIES OF ENERGY USED IN  THE  CUSTOMER'S  PREMISES  AND  ANY
   27  IMPROVEMENTS  OR  MODIFICATIONS  TO THE PREMISES, USE OF THE PREMISES OR
   28  ENERGY CONSUMING APPLIANCES OR EQUIPMENT OF ANY TYPE  THAT  MAY  SIGNIF-
   29  ICANTLY AFFECT ENERGY USAGE;
   30    (II)  THAT THE ON-BILL REPAYMENT CHARGE WILL BE BILLED BY SUCH CUSTOM-
   31  ER'S UTILITY COMPANY AND THAT FAILURE  TO  PAY  SUCH  ON-BILL  REPAYMENT
   32  CHARGE  MAY  RESULT IN THE CUSTOMER HAVING HIS OR HER ELECTRICITY AND/OR
   33  GAS SERVICE TERMINATED FOR NON-PAYMENT;
   34    (III) THAT PERFORMANCE OF THE QUALIFIED CLEAN ENERGY IMPROVEMENTS  MAY
   35  NOT  RESULT IN LOWER MONTHLY ENERGY COSTS OVER TIME, BASED ON ADDITIONAL
   36  FACTORS THAT CONTRIBUTE TO MONTHLY ENERGY COSTS; AND
   37    (IV) (1) IN THE CASE OF OBR OBLIGATIONS RELATING TO ELIGIBLE  PROJECTS
   38  PERFORMED  ON ELIGIBLE STRUCTURES OTHER THAN COMMERCIAL STRUCTURES, THAT
   39  IT IS THE SOLE  RESPONSIBILITY  OF  THE  AUTHORITY  TO  HANDLE  CONSUMER
   40  INQUIRIES AND COMPLAINTS RELATED TO THE OPERATION AND LENDING ASSOCIATED
   41  WITH  THE  PROGRAM,  PROVIDED FURTHER THAT THE AUTHORITY SHALL PROVIDE A
   42  MECHANISM TO RECEIVE SUCH CONSUMER INQUIRIES AND COMPLAINTS.
   43    (2) IN THE CASE OF  OBR  OBLIGATIONS  RELATING  TO  ELIGIBLE  PROJECTS
   44  PERFORMED  ON  COMMERCIAL  STRUCTURES,  THAT ALL DISPUTES RELATED TO THE
   45  OPERATION AND FINANCING ASSOCIATED WITH THE PROGRAM SHALL BE SUBJECT  TO
   46  ARBITRATION, AS PROVIDED IN THE OBR MASTER AGREEMENT.
   47    3.  THE AUTHORITY SHALL MAKE AVAILABLE TO THE PUBLIC, ON AN ANONYMIZED
   48  BASIS, SELECTED DATA CONCERNING THE ENERGY, ENVIRONMENTAL AND  FINANCIAL
   49  OUTCOMES   OF  QUALIFIED  ENERGY  PROJECTS  IMPLEMENTED  WITH  FINANCING
   50  PROVIDED THROUGH THE COMMERCIAL OBR PROGRAM.
   51    4. (A) FOR EACH OBR OBLIGATION THAT IS APPROVED BY THE AUTHORITY,  THE
   52  NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY SHALL RECORD OR
   53  CAUSE TO BE RECORDED, PURSUANT TO ARTICLE NINE OF THE REAL PROPERTY LAW,
   54  IN  THE  OFFICE OF THE APPROPRIATE RECORDING OFFICER, A DECLARATION WITH
   55  RESPECT TO THE PROPERTY IMPROVED BY SUCH SERVICES OF  THE  EXISTENCE  OF
   56  THE  OBR  OBLIGATION AND STATING THE TOTAL AMOUNT OF THE OBR OBLIGATION,
       S. 3941                             6
    1  THE TERM OF THE OBR OBLIGATION, AND THAT THE  OBR  OBLIGATION  IS  BEING
    2  REPAID  THROUGH A CHARGE ON AN ELECTRIC OR GAS METER ASSOCIATED WITH THE
    3  PROPERTY. THE DECLARATION SHALL FURTHER STATE THAT  IT  IS  BEING  FILED
    4  PURSUANT  TO  THIS  SECTION AND, UNLESS FULLY SATISFIED PRIOR TO SALE OR
    5  TRANSFER OF THE PROPERTY, THE OBR OBLIGATION SHALL  SURVIVE  CHANGES  IN
    6  OWNERSHIP,  TENANCY,  OR  METER  ACCOUNT RESPONSIBILITY AND, UNTIL FULLY
    7  SATISFIED, SHALL CONSTITUTE THE OBLIGATION OF THE PERSON RESPONSIBLE FOR
    8  THE METER ACCOUNT. SUCH DECLARATION SHALL NOT CONSTITUTE A MORTGAGE  AND
    9  SHALL  NOT  CREATE  ANY  SECURITY INTEREST OR LIEN ON THE PROPERTY. UPON
   10  SATISFACTION OF THE OBR OBLIGATION, THE AUTHORITY SHALL FILE A  DECLARA-
   11  TION OF REPAYMENT PURSUANT TO ARTICLE NINE OF THE REAL PROPERTY LAW.
   12    (B)  THE  RECORDING OFFICER SHALL RECORD SUCH DECLARATIONS IN THE SAME
   13  BOOK, PROVIDED UNDER SECTION THREE HUNDRED FIFTEEN OF THE REAL  PROPERTY
   14  LAW, IN WHICH SUCH RECORDING OFFICER RECORDS DEEDS.
   15    S  1905.  ADVISORY COUNCIL. 1. THE AUTHORITY SHALL ESTABLISH A COMMER-
   16  CIAL ON-BILL REPAYMENT ADVISORY COUNCIL TO ADVISE THE AUTHORITY  ON  THE
   17  CREATION  AND  IMPLEMENTATION  OF THE PROGRAM. THE COUNCIL SHALL CONSIST
   18  OF:
   19    (A) THE PRESIDENT OF THE AUTHORITY; THE SECRETARY OF STATE; THE  CHAIR
   20  OF THE DEPARTMENT OF PUBLIC SERVICE; THE PRESIDENT OF THE POWER AUTHORI-
   21  TY  OF  THE  STATE  OF  NEW YORK; THE PRESIDENT OF THE LONG ISLAND POWER
   22  AUTHORITY; THE COMMISSIONER OF ECONOMIC DEVELOPMENT; THE COMMISSIONER OF
   23  ENVIRONMENTAL CONSERVATION; OR THE DESIGNEES OF SUCH PERSONS; AND
   24    (B)  UNIONS,  INCLUDING  BUILDING  TRADES   AND   PROPERTY   SERVICES;
   25  LARGE-SCALE  CONSTRUCTION CONTRACTORS; INVESTMENT MARKET EXPERTS; FINAN-
   26  CIAL MARKET EXPERTS; ENVIRONMENTAL NON-GOVERNMENTAL  ORGANIZATIONS;  AND
   27  REAL ESTATE EXPERTS.
   28    2.  THE  PRESIDENT  OF  THE  AUTHORITY SHALL SERVE AS THE CHAIR OF THE
   29  COUNCIL.
   30    S 1906. ANNUAL REPORTING. 1.  NO LATER THAN OCTOBER FIRST,  TWO  THOU-
   31  SAND SIXTEEN AND OCTOBER FIRST OF EACH YEAR THEREAFTER, THE PRESIDENT OF
   32  THE  AUTHORITY  SHALL ISSUE AN ANNUAL REPORT TO THE GOVERNOR, THE TEMPO-
   33  RARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY, THE  MINORITY
   34  LEADER  OF THE SENATE AND THE MINORITY LEADER OF THE ASSEMBLY CONCERNING
   35  THE AUTHORITY'S ACTIVITIES RELATED TO THE COMMERCIAL  ON-BILL  REPAYMENT
   36  PROGRAM  CREATED  PURSUANT TO THIS TITLE. SUCH REPORT SHALL INCLUDE, BUT
   37  NOT BE LIMITED TO THE FOLLOWING INFORMATION:
   38    2. THE STATUS OF THE AUTHORITY'S ACTIVITIES AND  OUTCOMES  RELATED  TO
   39  SECTION  NINETEEN HUNDRED FOUR OF THIS TITLE. SUCH REPORT SHALL INCLUDE,
   40  BUT NOT BE LIMITED TO:
   41    (A) THE NUMBER OF PERSONS WHO HAVE APPLIED FOR OBR OBLIGATIONS  TO  BE
   42  ESTABLISHED THROUGH THE PROGRAM;
   43    (B) THE NUMBER OF OBR OBLIGATIONS IN DEFAULT;
   44    (C)  THE  AMOUNT AND NATURE OF THE COSTS INCURRED BY THE AUTHORITY FOR
   45  THE ACTIVITIES DESCRIBED IN PARAGRAPH (B) OF SUBDIVISION ONE OF  SECTION
   46  NINETEEN HUNDRED FOUR OF THIS TITLE;
   47    (D)  THE  AUTHORITY'S ACTIVITIES  AND OUTCOMES RELATED TO ESTABLISHING
   48  THE COMMERCIAL ON-BILL REPAYMENT  MECHANISM,  INCLUDING  THE  NUMBER  OF
   49  PERSONS  WHO  HAVE  APPLIED THE OPPORTUNITY TO UTILIZE ON-BILL REPAYMENT
   50  AND THE RESULTS OF THE EVALUATION PROGRAM PERFORMED PURSUANT TO SUBDIVI-
   51  SION THREE OF SECTION NINETEEN HUNDRED FOUR OF THIS TITLE;
   52    (E) THE AMOUNT EXPENDED BY THE AUTHORITY IN SUPPORT OF THE PROGRAM AND
   53  THE PURPOSES FOR WHICH SUCH FUNDS HAVE BEEN EXPENDED;
   54    (F) THE NUMBER OF CUSTOMERS  PARTICIPATING  IN  THE  PROGRAM  AND  THE
   55  AMOUNTS  FINANCED  PURSUANT  TO OBR AGREEMENTS WITH RESPECT TO WHICH OBR
   56  OBLIGATIONS HAVE BEEN ESTABLISHED;
       S. 3941                             7
    1    (G) THE NUMBER OF PROGRAM PARTICIPANTS WHO ARE  IN  ARREARS  IN  THEIR
    2  UTILITY ACCOUNTS FOR ELECTRIC AND/OR GAS SERVICE;
    3    (H)  THE  NUMBER  OF  PROGRAM PARTICIPANTS WHO ARE IN ARREARS IN THEIR
    4  ON-BILL REPAYMENT CHARGE PAYMENTS;
    5    (I) THE NUMBER OF PROGRAM PARTICIPANTS WHOSE UTILITY SERVICE HAS  BEEN
    6  TERMINATED FOR NON-PAYMENT;
    7    (J)  A  DESCRIPTION  OF THE GEOGRAPHIC DISTRIBUTION OF OBR OBLIGATIONS
    8  MADE;
    9    (K) AN ESTIMATE OF THE ENERGY SAVINGS RESULTING FROM THIS PROGRAM; AND
   10    (L) AN ESTIMATE OF THE AVERAGE PROJECT COST.
   11    S 1907. FUNDS, ADMINISTRATION AND  EVALUATION  AND  COORDINATION.  THE
   12  AUTHORITY  IS  AUTHORIZED  TO  ACCEPT,  AS AGENT OF THE STATE, ANY GIFT,
   13  GRANT, DEVISE OR BEQUEST, WHETHER CONDITIONAL OR UNCONDITIONAL,  INCLUD-
   14  ING  BUT NOT LIMITED TO FEDERAL GRANTS, AND TO USE MONIES MADE AVAILABLE
   15  FOR THE PROGRAM FROM ANY PUBLIC OR PRIVATE SOURCE, FOR  THE  PURPOSE  OF
   16  ADMINISTERING AND EVALUATING THE EFFECTIVENESS OF THE PROGRAM.
   17    S  3.  Subdivision 4 of section 1855 of the public authorities law, as
   18  amended by chapter 487 of the laws  of  2009,  is  amended  to  read  as
   19  follows:
   20    4.  To make rules and regulations governing the exercise of its corpo-
   21  rate powers and the fulfillment of its  corporate  purposes  under  this
   22  title  [and  title]  AND TITLES nine-A AND NINE-B of this article, which
   23  shall be filed with the department of state in the  manner  provided  by
   24  section one hundred two of the executive law.
   25    S  4.  Paragraph  (h)  of  subdivision 2 of section 18-a of the public
   26  service law, as amended by section 2 of part A of  chapter  173  of  the
   27  laws of 2013, is amended to read as follows:
   28    (h) On-bill recovery charges billed pursuant to section sixty-six-m of
   29  this  chapter  AND  ON-BILL REPAYMENT CHARGES BILLED PURSUANT TO SECTION
   30  SIXTY-SIX-O OF THIS CHAPTER shall be excluded from any determination  of
   31  an  entity's  gross  operating  revenues derived from intrastate utility
   32  operations for purposes of this section.
   33    S 5. Paragraph (d) of subdivision  6  of  section  65  of  the  public
   34  service  law,  as amended by chapter 388 of the laws of 2011, is amended
   35  to read as follows:
   36    (d) for installation of capital improvements and fixtures  to  promote
   37  energy  efficiency upon the request and consent of the customer, includ-
   38  ing but not limited (I) to the performance of qualified energy efficien-
   39  cy services for customers participating in  green  jobs-green  New  York
   40  on-bill  recovery  pursuant  to  section sixty-six-m of this article; OR
   41  (II) THE PERFORMANCE OF QUALIFIED ENERGY CLEAN ENERGY  IMPROVEMENTS  FOR
   42  CUSTOMERS  PARTICIPATING  IN  THE  COMMERCIAL  ON-BILL REPAYMENT PROGRAM
   43  PURSUANT TO SECTION SIXTY-SIX-O OF THIS ARTICLE.
   44    S 6. The public service law is amended by adding a new section 66-o to
   45  read as follows:
   46    S 66-O. COMMERCIAL ON-BILL REPAYMENT PROGRAM. 1.  (A)  THE  COMMISSION
   47  SHALL,  WITHIN  FORTY-FIVE  DAYS  OF THE EFFECTIVE DATE OF THIS SECTION,
   48  COMMENCE A PROCEEDING TO INVESTIGATE THE IMPLEMENTATION BY EACH COMBINA-
   49  TION ELECTRIC AND GAS CORPORATION HAVING ANNUAL REVENUES  IN  EXCESS  OF
   50  TWO  HUNDRED  MILLION  DOLLARS  OF  A BILLING AND COLLECTION SERVICE FOR
   51  ON-BILL REPAYMENT CHARGES IN PAYMENT OF  OBLIGATIONS  OF  ITS  CUSTOMERS
   52  PURSUANT  TO THE COMMERCIAL ON-BILL REPAYMENT PROGRAM ESTABLISHED PURSU-
   53  ANT TO TITLE NINE-B OF ARTICLE EIGHT OF THE PUBLIC AUTHORITIES LAW  AND,
   54  WITHIN ONE HUNDRED FIFTY DAYS OF THE EFFECTIVE DATE OF THIS SECTION, THE
   55  COMMISSION  SHALL  MAKE  A  DETERMINATION  ESTABLISHING  THE BILLING AND
   56  COLLECTION PROCEDURES FOR SUCH ON-BILL REPAYMENT CHARGES. THE DEPARTMENT
       S. 3941                             8
    1  SHALL CONSULT WITH THE NEW YORK STATE ENERGY  RESEARCH  AND  DEVELOPMENT
    2  AUTHORITY  IN  THE  PREPARATION OF ITS RECOMMENDATIONS TO THE COMMISSION
    3  FOR SUCH DETERMINATION. THE COMMISSION SHALL REQUIRE SUCH  ELECTRIC  AND
    4  GAS CORPORATIONS TO OFFER BILLING AND COLLECTION SERVICES FOR COMMERCIAL
    5  ON-BILL  REPAYMENT  CHARGES  FOR ELIGIBLE CUSTOMERS WITHIN THREE HUNDRED
    6  DAYS OF THE EFFECTIVE DATE OF THIS SECTION. TO THE  EXTENT  PRACTICABLE,
    7  SUCH  ELECTRIC  AND  GAS  CORPORATIONS SHALL UTILIZE EXISTING ELECTRONIC
    8  DATA INTERCHANGE INFRASTRUCTURE OR OTHER EXISTING BILLING INFRASTRUCTURE
    9  TO IMPLEMENT THEIR BILLING AND COLLECTION  RESPONSIBILITIES  UNDER  THIS
   10  SECTION.
   11    (B)  THE COMMISSION MAY SUSPEND SUCH AN ELECTRIC AND GAS CORPORATION'S
   12  PARTICIPATION IN THE COMMERCIAL ON-BILL REPAYMENT PROGRAM PROVIDED  THAT
   13  THE COMMISSION, AFTER CONDUCTING A HEARING AS PROVIDED IN SECTION TWENTY
   14  OF THIS CHAPTER, MAKES A FINDING THAT THERE IS A SIGNIFICANT INCREASE IN
   15  ARREARS OR UTILITY SERVICE DISCONNECTIONS THAT THE COMMISSION DETERMINES
   16  IS  DIRECTLY RELATED TO ON-BILL REPAYMENT CHARGES, OR A FINDING OF OTHER
   17  GOOD CAUSE. ANY SUSPENSION PURSUANT TO THIS SUBDIVISION SHALL NOT AFFECT
   18  SUCH ELECTRIC AND GAS CORPORATION'S  OBLIGATIONS  WITH  RESPECT  TO  ANY
   19  EXISTING  OBR  OBLIGATIONS  OUTSTANDING  AT THE TIME OF SUCH SUSPENSION,
   20  INCLUDING THE CONTINUED COLLECTION  OF  ALL  ON-BILL  REPAYMENT  CHARGES
   21  RELATED THERETO.
   22    (C)  THE  ON-BILL REPAYMENT CHARGE SHALL BE COLLECTED ON THE BILL FROM
   23  THE CUSTOMER'S ELECTRIC CORPORATION UNLESS THE  QUALIFIED  CLEAN  ENERGY
   24  IMPROVEMENTS AT THAT CUSTOMER'S PREMISES RESULT IN MORE PROJECTED ENERGY
   25  SAVINGS ON THE CUSTOMER'S GAS BILL THAN THE ELECTRIC BILL, IN WHICH CASE
   26  SUCH CHARGE SHALL BE COLLECTED ON THE CUSTOMER'S GAS CORPORATION BILL.
   27    2.  SCHEDULES  FOR  THE  COLLECTION  AND  BILLING OF ON-BILL REPAYMENT
   28  CHARGES SHALL PROVIDE:
   29    (A) THAT BILLING AND COLLECTION SERVICES SHALL  BE  AVAILABLE  TO  ALL
   30  CUSTOMERS  WHO  HAVE MET THE STANDARDS ESTABLISHED BY THE NEW YORK STATE
   31  ENERGY RESEARCH AND  DEVELOPMENT  AUTHORITY  FOR  PARTICIPATION  IN  THE
   32  COMMERCIAL  ON-BILL REPAYMENT PROGRAM AND HAVE EXECUTED AN OBR AGREEMENT
   33  FOR THE PERFORMANCE OF QUALIFIED CLEAN ENERGY  IMPROVEMENTS  UNDER  SUCH
   34  PROGRAM AND HAVE ESTABLISHED AN OBR OBLIGATION PURSUANT TO SECTION NINE-
   35  TEEN HUNDRED FOUR OF THE PUBLIC AUTHORITIES LAW;
   36    (B) THAT THE RESPONSIBILITIES OF SUCH ELECTRIC AND GAS CORPORATION ARE
   37  LIMITED  TO PROVIDING BILLING AND COLLECTION SERVICES FOR ON-BILL REPAY-
   38  MENT CHARGES AS DIRECTED BY THE AUTHORITY;
   39    (C) UNLESS FULLY SATISFIED PRIOR TO SALE OR  TRANSFER,  THAT  (I)  THE
   40  ON-BILL  REPAYMENT  CHARGES  FOR ANY SERVICES PROVIDED AT THE CUSTOMER'S
   41  PREMISES SHALL SURVIVE CHANGES IN OWNERSHIP, TENANCY  OR  METER  ACCOUNT
   42  RESPONSIBILITY,  AND  (II)  THAT ARREARS IN ON-BILL REPAYMENT CHARGES AT
   43  THE TIME OF ACCOUNT CLOSURE OR METER TRANSFER SHALL REMAIN THE RESPONSI-
   44  BILITY OF THE INCURRING CUSTOMER, UNLESS EXPRESSLY ASSUMED BY  A  SUBSE-
   45  QUENT PURCHASER OF THE PROPERTY SUBJECT TO SUCH CHARGES;
   46    (D) WITH RESPECT TO A CUSTOMER ACCOUNT WITH AN ELECTRIC AND GAS CORPO-
   47  RATION  THAT HAS BEEN CLOSED AND IN WHICH ARREARAGES EXIST, INCLUDING AN
   48  ARREARAGE WITH RESPECT TO AN ON-BILL REPAYMENT  CHARGE,  THE  COMMISSION
   49  MAY  ADOPT  RULES PROVIDING THAT AFTER A PERIOD OF TIME TO BE DETERMINED
   50  BY THE COMMISSION, THE SHARE OF TOTAL ARREARAGE THAT IS ATTRIBUTABLE  TO
   51  THE  ON-BILL REPAYMENT CHARGE MAY BE DEEMED, AS OF A DATE CERTAIN, TO BE
   52  AN OBLIGATION OWED DIRECTLY TO THE OBR PARTNER AND NOT TO  THE  ELECTRIC
   53  AND GAS CORPORATION;
   54    (E)  WITH  RESPECT  TO A CUSTOMER REMITTING LESS THAN THE TOTAL AMOUNT
   55  DUE FOR ELECTRIC AND/OR GAS SERVICES AND ON-BILL REPAYMENT CHARGES,  THE
   56  AUTHORITY  MAY REQUIRE THAT PAYMENTS BE ALLOCATED TO THE UTILITY AND THE
       S. 3941                             9
    1  OBR PARTNER IN  ACCORDANCE  WITH  A  WATERFALL,  SUCH  WATERFALL  TO  BE
    2  DESIGNED  WITH  AN OBJECTIVE OF NOT INCREASING UTILITY BAD DEBT EXPENSE,
    3  WITH PRIORITY IN THE  WATERFALL  BEING  GIVEN  TO  PAST-DUE  AMOUNTS  IN
    4  ACCORDANCE  WITH  THE  BILLING PERIOD DURING WHICH ANY SUCH AMOUNTS WERE
    5  ACCRUED, WITH NO ALLOCATIONS OF ARREARAGES OR CURRENT CHARGES BEING MADE
    6  TO EITHER THE UTILITY OR THE OBR PARTNER WHILE ARREARAGES OF EITHER TYPE
    7  FROM ANY EARLIER BILLING PERIOD REMAIN OUTSTANDING, AND, WITH RESPECT TO
    8  CHARGES THAT ACCRUED DURING THE SAME BILLING PERIOD, ALLOCATIONS TO  THE
    9  UTILITY  IN RESPECT OF ANY NON-OBR CHARGES IN ALL CASES BEING MADE AHEAD
   10  OF ALLOCATIONS TO THE OBR PARTNER FOR ANY OBR CHARGES;
   11    (F) BILLING AND COLLECTION SERVICES SHALL BE AVAILABLE WITHOUT  REGARD
   12  TO WHETHER THE ENERGY OR FUEL DELIVERED BY THE UTILITY IS THE CUSTOMER'S
   13  PRIMARY ENERGY SOURCE;
   14    (G) UNLESS OTHERWISE PRECLUDED BY LAW, PARTICIPATION IN THE COMMERCIAL
   15  ON-BILL  REPAYMENT PROGRAM SHALL NOT AFFECT A CUSTOMER'S ELIGIBILITY FOR
   16  ANY REBATE OR INCENTIVE OFFERED BY A UTILITY OR THE NEW YORK STATE ENER-
   17  GY RESEARCH AND DEVELOPMENT AUTHORITY; AND
   18    (H) ANY OTHER PROVISIONS NECESSARY TO  PROVIDE  FOR  THE  BILLING  AND
   19  COLLECTION OF ON-BILL REPAYMENT CHARGES.
   20    S  7.  Sections 1020-ii, 1020-jj and 1020-kk of the public authorities
   21  law, as renumbered by chapter 388 of the laws of  2011,  are  renumbered
   22  sections 1020-jj, 1020-kk and 1020-ll and a new section 1020-ii is added
   23  to read as follows:
   24    S  1020-II. COMMERCIAL ON-BILL REPAYMENT. 1. WITHIN THREE HUNDRED DAYS
   25  OF THE  EFFECTIVE DATE OF THIS SECTION, THE AUTHORITY SHALL ESTABLISH  A
   26  PROGRAM  TO  PROVIDE FOR THE BILLING AND COLLECTION OF ON-BILL REPAYMENT
   27  CHARGES FOR PAYMENT OF OBLIGATIONS OF ITS CUSTOMERS  TO  THE  COMMERCIAL
   28  ON-BILL  REPAYMENT PROGRAM ESTABLISHED PURSUANT TO TITLE NINE-B OF ARTI-
   29  CLE EIGHT OF THIS CHAPTER. SUCH PROGRAM SHALL  BE  CONSISTENT  WITH  THE
   30  STANDARDS  SET  FORTH  IN SECTION SIXTY-SIX-O OF THE PUBLIC SERVICE LAW.
   31  BILLING AND COLLECTION SERVICES UNDER SUCH  TARIFFS  SHALL  COMMENCE  AS
   32  SOON AS PRACTICABLE AFTER ESTABLISHMENT OF THE PROGRAM.
   33    2.  THE  AUTHORITY  MAY  SUSPEND ITS OFFERING OF THE ON-BILL REPAYMENT
   34  CHARGE PROVIDED THAT THE AUTHORITY MAKES  A  FINDING  THAT  THERE  IS  A
   35  SIGNIFICANT  INCREASE  IN ARREARS OR UTILITY SERVICE DISCONNECTIONS THAT
   36  THE AUTHORITY DETERMINES IS DIRECTLY RELATED TO SUCH CHARGE, OR A  FIND-
   37  ING OF OTHER GOOD CAUSE.
   38    S  8.  Section 242 of the real property law is amended by adding a new
   39  subdivision 5 to read as follows:
   40    5. DISCLOSURE PRIOR TO THE SALE OF REAL PROPERTY TO WHICH A COMMERCIAL
   41  ON-BILL REPAYMENT CHARGE APPLIES. (A) ANY PERSON, FIRM,  COMPANY,  PART-
   42  NERSHIP  OR  CORPORATION OFFERING TO SELL REAL PROPERTY WHICH IS SUBJECT
   43  TO A COMMERCIAL ON-BILL REPAYMENT CHARGE PURSUANT  TO  TITLE  NINE-B  OF
   44  ARTICLE EIGHT OF THE PUBLIC AUTHORITIES LAW SHALL PROVIDE WRITTEN NOTICE
   45  TO THE PROSPECTIVE PURCHASER OR THE PROSPECTIVE PURCHASER'S AGENT, STAT-
   46  ING AS FOLLOWS: "THIS PROPERTY IS SUBJECT TO A COMMERCIAL ON-BILL REPAY-
   47  MENT  CHARGE". SUCH NOTICE SHALL ALSO INCLUDE, AS AN ATTACHMENT, THE OBR
   48  AGREEMENT GOVERNING THE COMMERCIAL ON-BILL REPAYMENT OBLIGATION, INCLUD-
   49  ING ANY  MODIFICATIONS  THERETO,  A  DESCRIPTION  OF  THE  CLEAN  ENERGY
   50  IMPROVEMENTS  PERFORMED,  INCLUDING IMPROVEMENTS TO THE PROPERTY, AND AN
   51  EXPLANATION OF THE BENEFIT OF THE COMMERCIAL ON-BILL REPAYMENT QUALIFIED
   52  CLEAN ENERGY SERVICES. SUCH NOTICE SHALL BE PROVIDED BY THE SELLER PRIOR
   53  TO ACCEPTING A PURCHASE OFFER.
   54    (B) ANY PROSPECTIVE OR ACTUAL PURCHASER WHO HAS SUFFERED A LOSS DUE TO
   55  A VIOLATION OF THIS  SUBDIVISION  IS  ENTITLED  TO  RECOVER  ANY  ACTUAL
       S. 3941                            10
    1  DAMAGES  INCURRED  FROM THE PERSON OFFERING TO SELL OR SELLING SAID REAL
    2  PROPERTY.
    3    S  9. Section 291-j of the real property law, as added by section 2 of
    4  part DD of chapter 58 of the  laws  of  2012,  is  amended  to  read  as
    5  follows:
    6    S  291-j.  Recording  of  declarations  by  the  New York state energy
    7  research and development authority. 1. Pursuant to subdivision  five  of
    8  section  eighteen  hundred ninety-six of the public authorities law, the
    9  New York state energy research and development authority shall record or
   10  cause to be recorded, in the office of the appropriate  recording  offi-
   11  cer, a declaration evidencing the existence of a loan as described ther-
   12  ein  and,  upon  satisfaction  of such loan, such authority shall file a
   13  declaration of repayment and full satisfaction  of  the  loan  repayment
   14  utility  meter  charge. The recording officer shall record such declara-
   15  tions in the same book, provided under section three hundred fifteen  of
   16  the real property law, in which such recording officer records deeds.
   17    2.  PURSUANT  TO  SUBDIVISION FOUR OF SECTION NINETEEN HUNDRED FOUR OF
   18  THE PUBLIC AUTHORITIES LAW, THE  NEW  YORK  STATE  ENERGY  RESEARCH  AND
   19  DEVELOPMENT  AUTHORITY  SHALL  RECORD  OR  CAUSE  TO BE RECORDED, IN THE
   20  OFFICE OF THE APPROPRIATE RECORDING OFFICER,  A  DECLARATION  EVIDENCING
   21  THE EXISTENCE OF AN OBR OBLIGATION AS DESCRIBED THEREIN AND, UPON SATIS-
   22  FACTION  OF SUCH OBR OBLIGATION, SUCH AUTHORITY SHALL FILE A DECLARATION
   23  OF REPAYMENT AND FULL SATISFACTION OF THE OBR OBLIGATION.  THE RECORDING
   24  OFFICER SHALL RECORD SUCH DECLARATION IN THE SAME BOOK,  PROVIDED  UNDER
   25  SECTION  THREE  HUNDRED FIFTEEN OF THIS ARTICLE, IN WHICH SUCH RECORDING
   26  OFFICER RECORDS DEEDS.
   27    S 10. This act shall take effect immediately.