Chapter 114

ARTICLE I ARTICLE II Energize NY Benefit Financing Program Community Choice Aggregation (Energy) Program § 114-1. Legislative findings; intent and purpose; authority. § 114-10. Legislative findings; intent and § 114-2. Definitions. purpose; authority. § 114-3. Establishment of Energize NY § 114-11. Definitions. Benefit Financing Program. § 114-12. Establishment of a Community § 114-4. Procedures for eligibility. Choice Aggregation (Energy) § 114-5. Application criteria. Program. § 114-6. Opt-in, Energize NY finance § 114-13. Procedures for eligibility; agreement. customer data sharing. § 114-7. Energy audit; renewable energy § 114-14. Choice of energy supplier; opt- system feasibility study. out notice and procedure. § 114-8. Terms and conditions of § 114-15. Verification and reporting. repayment. § 114-9. Verification and report. ARTICLE I Energize NY Benefit Financing Program [Adopted 2-19-2013 by L.L. No. 2-2013; 1-2-2018 by L.L. No. 1-2018] § 114-1. Legislative findings; intent and purpose; authority. A. 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. 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. This article shall be known and may be cited as the "Energize NY Benefit Financing Program Law of the Village of Croton-on-Hudson." § 114-2. Definitions. For purposes of this article, and unless otherwise expressly stated or unless the context requires, the following terms shall have the meanings indicated: AUTHORITY — The New York State Energy Research and Development Authority, as defined by Subdivision two of § 1 of the Public Authorities Law, or its successor. EIC — The Energy Improvement Corporation, a local development corporation, duly organized under § 1 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. ENERGY AUDIT — 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. ENERGY EFFICIENCY IMPROVEMENT — 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. QUALIFIED PROPERTY OWNER — 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. RENEWABLE ENERGY SYSTEM — 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. RENEWABLE ENERGY SYSTEM FEASIBILITY STUDY — 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. § 114-3. Establishment of Energize NY Benefit Financing Program. A. 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. 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. 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. § 114-4. Procedures for eligibility. A. 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. 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. 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. § 114-5. Application criteria. 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. The proposed energy efficiency improvements and/or renewable energy systems are determined to be cost effective based on guidelines issued by the Authority; B. The property owner may not be in bankruptcy and the property may not constitute property subject to any pending bankruptcy proceeding; C. 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. Sufficient funds are available from EIC to provide financing to the property owner; E. The property owner is current in payments on any existing mortgage; F. 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. 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. § 114-6. Opt-in, Energize NY finance agreement. A. 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. 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. C. The Energize NY finance agreement shall include the terms and conditions of repayment set forth under § 114-8 of this article. § 114-7. Energy audit; renewable energy system feasibility study. A. 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. 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. 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. § 114-8. Terms and conditions of repayment. 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. 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. 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. 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. The charge shall constitute a lien upon the real property benefited by the Energize NY Benefit Financing Program as set forth in Article5-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. § 114-9. Verification and report. A. 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. 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. ARTICLE II Community Choice Aggregation (Energy) Program [Adopted 7-13-2015 by L.L. No. 5-2015] § 114-10. Legislative findings; intent and purpose; authority. A. 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. 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. 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-0 and orders from Case No. 14-M-0224, orders from Case No. 14-M-0564 shall govern the CCA Program. D. This Chapter shall be known and may be cited as the "Community Choice Aggregation (Energy) Program Law of the Village of Croton-on-Hudson." § 114-11. Definitions. 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: BUNDLED CUSTOMERS — Residential and small commercial customers of electricity or natural gas ("fuels") who are purchasing the fuels from the distribution utility. COMMUNITY CHOICE AGGREGATION PROGRAM or CCA PROGRAM — 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. DISTRIBUTION UTILITY — Owner or controller of the means of distribution of the natural gas or electricity that is regulated by the Public Service Commission. PUBLIC SERVICE COMMISSION — New York State Public Service Commission. SMALL COMMERCIAL — Non-residential customers as permitted by the Order. SUPPLIERS — 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. SUSTAINABLE WESTCHESTER — A not-for-profit organization comprised of member municipalities in Westchester County, New York. § 114-12. Establishment of a Community Choice Aggregation (Energy) Program. A. 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. 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. 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. 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. § 114-13. Procedures for eligibility; customer data sharing. A. 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. 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. 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. 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. 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. 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. § 114-14. Choice of energy supplier; opt-out notice and procedure. A. 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. 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. The opt-out period shall be twenty (20) days. D. 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. § 114-15. Verification and reporting. A. 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. § 114-15 ENERGY CONSERVATION CROTON-ON-HUDSON CODE § 115-1