Res 0593-2026

Res. No. 593 ..Title Resolution calling upon the Governor to sign S.1335-B/A.5404-B, legislation that would expand authorizing language for the Commercial Property Assessed Clean Energy (“C-PACE”) Program to include water improvements, resiliency improvements, and in cities with a population of 1 million or more, the use of low carbon intensity building components ..Body By Council Members Gennaro, Abreu, Krishnan, Hankerson, Restler, Brewer and Wilson Whereas, In 2019, the New York State (“NYS” or “State”) legislature passed the Climate Leadership and Community Protection Act (“CLCPA”), committing NYS to a net-zero carbon economy by 2050, 100 percent zero emission electrical generation by 2040, a 40 percent reduction from 1990 levels in statewide greenhouse gas emissions by 2030, and 70 percent renewable energy by 2030; and Whereas, Local Law 97 of 2019 (“Local Law 97”) requires New York City (“NYC” or “City”) greenhouse gas emissions to be reduced by 80 percent compared to 2005 levels by 2050, and sets increasingly stringent emissions limits over several compliance periods; and Whereas, The first Local Law 97 compliance period, which ends in 2029, sets emissions limits on the top 20 percent of emitters and expands to the top 75 percent of carbon intensive buildings during the second compliance period, with increasingly stringent emissions limits aimed at achieving net-zero carbon emissions from the building sector by 2050; and Whereas, Because several of the renewable energy projects that were expected to come online during the first Local Law 97 compliance period and reduce the carbon intensity of the City’s electric grid have been stalled or canceled, property owners may need additional tools to meet Local Law 97 and CLCPA emissions reduction obligations; and Whereas, Property assessed clean energy (“PACE”) financing programs allow municipal corporations, such as counties, towns, cities, or villages, to offer financing for energy efficiency upgrades to property owners, which the owners agree to repay via a special assessment placed on their annual property tax bill; and Whereas, Commercial PACE (“C-PACE”) financing programs may provide funds to commercial properties, multi-family residential properties, non-profit properties, or industrial buildings, while the less common residential PACE (“R-PACE”) financing programs generally cover single-family homes; and Whereas, PACE financing can be useful for property owners because it can be used to cover 100 percent of the upfront cost of energy efficiency upgrades, with repayment occurring in installments over the useful life of the equipment installed; and Whereas, Tying the payback period to the useful life of the equipment can mean a longer timeframe for repayment, lower annual or semi-annual payments, and potentially lower interest rates, making upgrades more accessible to property owners; and Whereas, PACE programs require enabling legislation to be passed at the State level permitting their creation, and authorizing legislation to be passed by local governments seeking to establish such programs; and Whereas, The State’s current enabling legislation authorizes PACE lenders to offer financing only for renewable energy systems and certain energy efficiency measures when they are permanently fixed to the property, and would not allow for property owners to seek such financing for building improvements related to water infrastructure, resiliency measures, or the use of low carbon building components; and Whereas, Although the State’s enabling legislation makes clear that the rationale behind establishing a PACE financing program is to help achieve statewide energy efficiency and renewable energy goals, reduce greenhouse gas emissions, and mitigate the worst effects of climate change, it prohibits PACE lenders from financing many types of building improvements that could advance these goals; and Whereas, S.1335-B, sponsored by State Senator Kevin Parker and passed in the NYS Senate, and companion bill A.5404-B, sponsored by Assembly Member Steve Stern and passed in the NYS Assembly, seek to amend the State’s enabling legislation in order to allow PACE financing for qualifying water and resiliency improvements, and in cities with a population over 1 million, for the use of low carbon intensity building components during the construction of new buildings and during the renovation or retrofitting of existing buildings; and Whereas, The bill would define “qualifying water improvements” as those that reduce water consumption, promote water conservation and storage, manage stormwater, resist flooding, or mitigate contamination in potable water systems; and Whereas, The bill would further define “qualifying resiliency improvements” as improvements that would enable a building, structure, or occupants of a building to withstand or recover quickly from extreme weather events such as floods, high winds, tornados, extreme temperatures, heavy rainfall, sea level rise, or wildfires, or improvements designed to improve energy storage, establish microgrids, expand electric vehicle charging infrastructure, or improve indoor air quality; and Whereas, The bill would also expand the definition of “energy efficiency improvements” from interventions that reduce energy consumption to also include improvements that reduce greenhouse gas emissions; now, therefore, be it Resolved, That the Council of the City of New York calls upon the Governor to sign S.1335-B/A.5404-B, legislation that would expand authorizing language for the Commercial Property Assessed Clean Energy (“C-PACE”) Program to include water improvements, resiliency improvements, and in cities with a population of 1 million or more, the use of low carbon intensity building components. NRC LS#24536 7/14/26