[HISTORY: Adopted by the Board of Trustees of the Village
of Croton-on-Hudson as indicated in article histories. Amendments
noted where applicable.]
[Adopted 2-19-2013 by L.L. No. 2-2013; 1-2-2018 by L.L. No. 1-2018]
A.Â
It is the policy of both the Village of Croton-on-Hudson and the
State of New York to achieve energy efficiency and renewable energy
goals, reduce greenhouse gas emissions, mitigate the effect of global
climate change, and advance a clean energy economy. The Village finds
that it can fulfill this policy by providing property-assessed clean
energy financing to property owners for the installation of renewable
energy systems and energy efficiency measures. This chapter establishes
a program that will allow the Energy Improvement Corporation (EIC),
a local development corporation, acting on behalf of the Village,
pursuant to the municipal agreement to be entered into between the
Village and EIC pursuant to Article 5-G of the New York General Muncipal
Law (the municipal agreement), to make funds available to qualified
property owners that will be repaid by such property owners through
charges on the real properties benefited by such funds, thereby fulfilling
the purposes of this article and fulfilling an important public purpose.
B.Â
The Village of Croton-on-Hudson is authorized to implement this Energize
NY Benefit Financing Program pursuant to the Municipal Home Rule Law
and Article 5-L of the New York General Municipal Law.
C.Â
This article shall be known and may be cited as the "Energize NY
Benefit Financing Program Law of the Village of Croton-on-Hudson."
For purposes of this article, and unless otherwise expressly
stated or unless the context requires, the following terms shall have
the meanings indicated:
The New York State Energy Research and Development Authority,
as defined by Subdivision two of § 1851 of the Public Authorities
Law, or its successor.
The Energy Improvement Corporation, a local development corporation,
duly organized under § 1411 of the Not-For-Profit Corporation
Law, authorized hereby on behalf of the Village of Croton-on-Hudson
to implement the Energize NY Benefit Financing Program by providing
funds to qualified property owners (as defined in this article) and
providing for repayment of such funds from monies collected by the
Village Tax Collecting Officer as a charge to be levied on the real
property and collected in the same manner and same form as the Village
taxes.
A formal evaluation or assessment of the energy consumption
of a permanent building or structural improvement to real property,
conducted by a contractor certified by the Authority, or certified
by a certifying entity approved by the Authority, for the purpose
of identifying appropriate energy efficiency improvements that could
be made to the property.
Any renovation or retrofitting of a building to reduce energy
consumption, such as window and door replacement, lighting, caulking,
weatherstripping, air sealing, insulation, and heating and cooling
system upgrades, and similar improvements, determined to be cost effective
pursuant to criteria established by the Authority, not including lighting
measures or household appliances that are not permanently fixed to
real property.
An owner of residential or commercial real property located
within the boundaries of the Village of Croton-on-Hudson that is determined
to be eligible to participate in the Energize NY Benefit Financing
Program under the procedures for eligibility set forth under this
article.
An energy-generating system for the generation of electric
or thermal energy, to be used primarily at such property, except when
the qualified property owner is a commercial entity, in which case
the system may be used for other properties in addition to the subject
property, 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.
A written study, conducted by a contractor certified by the
Authority, or certified by a certifying entity approved by the Authority,
for the purpose of determining the feasibility of installing a renewable
energy system.
A.Â
An Energize NY Benefit Financing Program is hereby established by
the Village of Croton-on-Hudson, whereby EIC, acting on its behalf
pursuant to the municipal agreement, may provide funds to qualified
property owners in accordance with the procedures set forth under
this article, to finance the acquisition, construction and installation
of renewable energy systems and energy efficiency improvements and
the verification of the installation of such systems and improvements.
B.Â
For funds provided to a qualified property owner which is a commercial
entity, not-for-profit organization, or entity other than an individual,
EIC shall have the authority to impose requirements on the maximum
amount of funds to be provided, which may consider factors including
but not limited to the property value, projected savings, project
cost, and existing indebtedness secured by such property.
C.Â
For financings made to a qualified property owner who is an individual,
the funds provided shall not exceed the lesser of 10% percent of the
appraised value of the real property where the renewable energy systems
and/or energy efficiency improvements will be located, or the actual
cost of installing the renewable energy systems and/or energy efficiency
improvements, including the costs of necessary equipment, materials,
and labor and the cost of verification of such systems and improvements.
A.Â
Any property owner in the Village may submit an application to EIC
on such forms as have been prepared by EIC and made available to property
owners on the website of EIC and at the Village Clerk's offices.
B.Â
Every application submitted by a property owner shall be reviewed by EIC acting on behalf of the Village, which shall make a positive or negative determination on such application based upon the criteria for making a financing enumerated in § 114-5 of this article. EIC may also request further information from the property owner where necessary to aid in its determination.
C.Â
If a positive determination on an application is made by EIC acting on behalf of the Village, the property owner shall be deemed a qualified property owner and shall be eligible to participate in the Energize NY Benefit Financing Program in accordance with the procedure set forth under § 114-6 of this article; provided that in no case shall a property owner that has received funds from another municipal corporation for the acquisition, construction and installation of energy efficiency improvements and/or renewable energy systems be deemed a qualified property owner.
Upon the submission of an application, EIC, acting on behalf
of the Village, shall make a positive or negative determination on
such application based upon the following criteria for the making
of a financing:
A.Â
The proposed energy efficiency improvements and/or renewable energy
systems are determined to be cost effective based on guidelines issued
by the Authority;
B.Â
The property owner may not be in bankruptcy and the property may
not constitute property subject to any pending bankruptcy proceeding;
C.Â
The amount financed under the Energize NY Benefit Financing Program
shall be repaid over a term not to exceed the weighted average of
the useful life of renewable energy systems and energy efficiency
improvements to be installed on the property as determined by EIC;
D.Â
Sufficient funds are available from EIC to provide financing to the
property owner;
E.Â
The property owner is current in payments on any existing mortgage;
F.Â
The property owner is current in payments on any existing real property
taxes and has been current on real property taxes for the previous
three years; and
G.Â
Such additional criteria, not inconsistent with the criteria set
forth above, as the Village, or EIC acting on its behalf, may set
from time to time.
A.Â
A qualified property owner may participate in the Energize NY Benefit
Financing Program through the execution of an Energize NY finance
agreement made by and between the qualified property owner and EIC,
acting on the behalf of the Village (the Energize NY Finance Agreement).
B.Â
Upon execution of the Energize NY finance agreement, the qualified property owner shall be eligible to receive funds from EIC, acting on behalf of Village, for the acquisition, construction, and installation of qualifying renewable energy systems and energy efficiency improvements, provided the requirements of § 114-7 of this article have been met.
A.Â
No funds shall be made available for energy efficiency improvements unless determined to be appropriate through an energy audit as defined in § 114-2.
B.Â
No funds shall be made available for a renewable energy system unless determined to be feasible through a renewable energy system feasibility study as defined in § 114-2.
C.Â
The cost of such energy audit and/or renewable energy system feasibility
study shall be borne solely by the property owner but may be included
in the financed amount if the work is approved.
The Energize NY finance agreement between the qualified property
owner and EIC, acting on behalf of the Village, shall set forth the
terms and conditions of repayment in accordance with the following:
A.Â
The principal amount of the funds paid to the qualified property
owner hereunder, together with the interest thereon, shall be paid
by the property owner as a charge on his or her property tax bill
and shall be levied and collected at the same time and in the same
manner as Village property taxes, provided that such charge shall
be separately listed on the tax bill. The Village shall make payment
to EIC or its designee in the amount of all such separately listed
charges within 30 days of the date the payment is due to be made to
Village.
B.Â
The term of such repayment shall be determined at the time the Energize
NY finance agreement is executed by the property owner and EIC, provided
that in no case shall the term exceed the weighted average of the
useful life of the systems and improvements as determined by EIC acting
on behalf of the Village.
C.Â
The rate of interest for the charge shall be fixed by EIC, acting
on behalf of the Village, at the time the Energize NY finance agreement
is executed by the property owner and EIC.
D.Â
The charge shall constitute a lien upon the real property benefited
by the Energize NY Benefit Financing Program as set forth in Article
5-L of the General Municipal Law and shall run with the land. A transferee
of title to the benefited real property shall be required to pay any
future installments, including interest thereon.
A.Â
EIC shall be responsible for verifying and reporting to the Village
on the installation and performance of renewable energy systems and
energy efficiency improvements financed by such program.
B.Â
The Village shall verify and report on the installation and performance
of renewable energy systems and energy efficiency improvements financed
by the Energize NY Benefit Financing Program in such form and manner
as the Authority may establish.
[Adopted 7-13-2015 by L.L. No. 5-2015]
A.Â
It is the policy of both the Village of Croton-on-Hudson and the
State of New York to reduce costs and provide cost certainty for the
purpose of economic development, to promote deeper penetration of
energy efficiency and renewable energy resources such as wind and
solar, and wider deployment of distributed energy resources as well
as to examine the retail energy markets and increase participation
of and benefits for residential and small commercial customers in
those markets. Among the policies and models that may offer benefits
in New York is community choice aggregation, which allows local governments
to determine the default supplier of electricity and natural gas on
behalf of its residential and small commercial customers.
B.Â
The purpose of this CCA Program is to allow participating local governments,
including the Village of Croton-on-Hudson, to procure energy supply
service for their residential and small commercial customers, who
will have the opportunity to opt out of the procurement, while maintaining
transmission and distribution service from the existing distribution
utility. This article establishes a program that will allow the Village
of Croton-on-Hudson to put out for bid the total amount of natural
gas and/or electricity being purchased by local residential and small
commercial customers. bundled customers will have the opportunity
to have more control to lower their overall energy costs, to spur
clean energy innovation and investment, to improve customer choice
and value, and to protect the environment; thereby, fulfilling the
purposes of this article and fulfilling an important public purpose.
C.Â
The Village of Croton-on-Hudson is authorized to implement this Community
Choice Aggregation (Energy) Program pursuant to Section 10(1)(ii)(a)(12)
of the New York Municipal Home Rule Law; and State of New York Public
Service Commission Case No. 14-M-0564, Petition of Sustainable Westchester
for Expedited Approval for the Implementation of a Pilot Community
Choice Aggregation Program within the County of Westchester, Order
Granting Petition in Part (issued February 26, 2015) as may be amended,
including subsequent orders of the Public Service Commission issued
in connection with or related to Case No. 14-M-0564 (collectively,
the "Order"). Order shall also mean orders of the Public Service Commission
related to State of New York Public Service Commission Case No. 14-M-0224,
Proceeding on Motion of the Commission to Enable Community Choice
Aggregation Programs (issued December 15, 2014) to the extent that
orders related to Case No. 14-M-0224 enable actions by the Village
not otherwise permitted pursuant to orders related to Case 14-M-0564;
provided, however, that in the event of any conflict between orders
from Case No. 14-M-0564 and orders from Case No. 14-M-0224, orders
from Case No. 14-M-0564 shall govern the CCA Program.
D.Â
This Chapter shall be known and may be cited as the "Community Choice
Aggregation (Energy) Program Law of the Village of Croton-on-Hudson."
For purposes of this article, and unless otherwise expressly
stated or unless the context otherwise requires, the terms in this
article shall have the meanings employed in the State of New York
Public Service Commission's Uniform Business Practices or, if
not so defined there, as indicated below:
Residential and small commercial customers of electricity
or natural gas ("fuels") who are purchasing the fuels from the distribution
utility.
A municipal energy procurement program, which replaces the
incumbent utility as the default supplier for all bundled customers
within the Village of Croton-on-Hudson.
Owner or controller of the means of distribution of the natural
gas or electricity that is regulated by the Public Service Commission.
New York State Public Service Commission.
Non-residential customers as permitted by the Order.
Energy service companies (ESCOs) that procure electric power
and natural gas for bundled customers in connection with this article
or, alternatively, generators of electricity and natural gas or other
entities who procure and resell electricity or natural gas.
A not-for-profit organization comprised of member municipalities
in Westchester County, New York.
A.Â
A Community Choice Aggregation (Energy) Program is hereby established
by the Village of Croton-on-Hudson, whereby the Village shall work
together with Sustainable Westchester to implement the CCA Program
to the full extent permitted by the Order, as set forth more fully
herein. The Village's role under the CCA Program involves the
aggregating of the electric and/or natural gas supply of its residents
and the entering into a contract with one or more suppliers for supply
and services. Under the CCA Program, the operation and ownership of
the utility service shall remain with the distribution utility.
B.Â
The Village's participation in a CCA Program constitutes neither
the purchase of a public utility system, nor the furnishing of utility
service. The Village will not take over any part of the electric or
gas transmission or distribution system and will not furnish any type
of utility service, but will instead negotiate with suppliers on behalf
of participating residential and small commercial customers.
C.Â
In order to implement the CCA Program, the Village will adopt one
or more resolutions that outline the process of and conditions for
participation in the CCA Program, including but not limited to signing
a contract for a compliant bid with one or more suppliers, all as
consistent with the article and the Order.
D.Â
The Public Service Commission supervises retail markets and participants
in these markets through legislative and regulatory authority and
the Uniform Business Practices, which includes rules relating to the
eligibility of participating ESCOs, the operation by which ESCOs provide
energy services, and the terms on which customers may be enrolled
with ESCOs.
A.Â
As permitted by the Order, the Village may request from the Distribution
Utilities aggregated customer information by fuel type and service
classification on a rolling basis.
B.Â
Sustainable Westchester, on behalf of the Village, shall issue one
or more requests for proposals to suppliers to provide energy to participants
and may then award a contract in accordance with the CCA Program.
C.Â
Sustainable Westchester or the Village if the Village so chooses,
will then request individual customer data from the distribution utility
in accordance with the CCA Program.
D.Â
Sustainable Westchester or the Village if the Village so chooses,
and the selected supplier will then notify bundled customers of the
contract terms and their opportunity to opt out of the CCA Program.
E.Â
In accordance with and for purposes of the Order, Consolidated Edison
Company of New York, Inc. will provide to Sustainable Westchester
aggregate and customer-specific data (including usage data, capacity
tag obligations, account numbers, and service addresses) of all bundled
customers in the Village not currently enrolled with an ESCO.
F.Â
Sustainable Westchester and the Village will protect customer information
as required by law, subject to the Order and the limitations of the
New York State Freedom of Information Law.
A.Â
The Village or in conjunction with the ESCO will notify its residential
and small commercial customers, by letter notice, of the Village's
decision to establish the CCA Program, of the contract terms with
an ESCO, and of the opportunity to opt out of the CCA Program.
B.Â
The letter notice will be sent to each customer at the address provided
by the distribution utility and explain the CCA Program and the material
provisions of the ESCO contract, identify the methods by which the
customer can opt out of the CCA Program, and provide information on
how the customer can access additional information about the CCA Program.
C.Â
The opt-out period shall be twenty (20) days.
D.Â
CCA Program bundled customers, upon enrollment, will receive a welcome
letter that will explain the customers' options for canceling
the enrollment if they believe they were enrolled incorrectly or otherwise
decide to withdraw from the CCA Program in favor of another Supplier.
The welcome letter also will explain that residential customers are
entitled to the added protection of the mandated three-day rescission
period as detailed in Section 5(B)(3) of the Uniform Business Practices.
A.Â
Sustainable Westchester shall be responsible for filing an annual
report with the Public Service Commission, which identifies the number
of customers enrolled in the CCA Program by municipality and customer
class, the number of customers who returned to utility service or
service with another supplier during the reporting period, and the
average cost of commodity supply by month for the reporting period.