HomeMy WebLinkAboutLL 15 of 2022 Community Choice AggregationMom, RE We;
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Paulette Rosa
Town Clerk of Ithaca
Town's Clerk Office
215 N Tioga St
Ithaca NY 14850
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September 7, 2022
KATHY HOCHUL
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RE: Town of Ithaca, Local Law 15 2022, filed on August 312022
Dear Sir/Madam:
The above referenced material was filed by this office as indicated. Additional
local law filing forms can be obtained from our website, www.dos.ny.gov,
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Sincerely,
State Records and Law Bureau
(518) 473-2492
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A LOCAL LAW TO ESTABLISH A COMMUNITY CHOICE AGGREGATION
(ENERGY) PROGRAM IN THE TOWN OF ITHACA
Be it Enacted by the Town Board of the Town of Ithaca as follows:
Section 1. The Code of the Town of Ithaca is hereby amended to add a new Chapter 1.35
entitled "COMMUNITY CHOICE AGGREGATION (ENERGY) PROGRAM" that reads as
follows:
§ 135-1. Legislative Findings; Intent and Purpose; Authority.
A. The Town of Ithaca has long demonstrated its commitment to sustainability and
community -wide greenhouse gas reduction from energy use, transportation, land use and
waste management. The primary goal of the Green New Deal resolution, passed
unanimously by the Town Board in March of 2020, is to achieve an equitable transition to
carbon -neutrality Town -wide by 2030. The resolution calls for meeting the electricity needs
of Town government operations with 100% regionally sourced renewable electricity and
reducing emissions by 50% from the Town fleet of vehicles by 2025.
B. To meet reduction targets for greenhouse gas emissions, the Town will seek reductions for
all Addressable Carbon emissions associated with the community, including electricity use
in buildings, heating of buildings, energy for transportation, and solid- and sewer waste
exports.
C. To achieve the Town's 2030 goal, it may choose to accelerate the deployment of Distributed
Energy Resources (DER) such as photovoltaic panels and energy storage systems, as well
as to examine the retail energy markets and increase participation of "Eligible Consumers"
in those markets.
D. Community Choice Aggregation has the potential to enable greenhouse gas reductions from
electricity use in existing buildings while at the same time guaranteeing affordability and
minimizing risk associated with price volatility to Eligible Consumers.
E. Among the foremost policies and models to increase access to affordable community -wide
energy transition in the state of New York is Community Choice Aggregation ("CCA"),
which allows local governments to determine the supplier(s) of electricity on behalf of
Eligible Consumers, and provide a significant opportunity to diversify electricity supply
based on DER.
F. The purpose of CCA is to allow participating local governments to procure electricity and
gas supply service for Eligible Consumers, while maintaining transmission and distribution
service from the existing Distribution Utility.
Town of Ithaca CCA Local Law (Draft 8)
G. The purpose of the Town of Ithaca's CCA program is to administer the energy service in a
manner that expands access to solar and other local renewables and energy efficiency
technologies, by offering optional enrollment of Eligible Consumers in voluntary
investments in DER, with access to financial mechanisms including the .financial
mechanism developed under the City of Ithaca's Energy Efficiency Retrofitting and
Thermal Load Electrification program, approved by that City's Common Council.
H. This Chapter establishes a program ("CCA Program") that will allow the Town of Ithaca,
in conjunction with the City of Ithaca, as well as any other local governments in Tompkins
County which may elect to join the CCA Program at a later date, to work together using a
shared purchasing model to put out for bid the total amount of electricity and natural gas
being purchased by Eligible Consumers within the jurisdictional boundaries of participating
municipalities. The CCA Program will offer service to every Eligible Consumer in its
service territory, including Municipal Accounts, and will investigate opportunities to divert
municipal sewage and solid waste exports as potential feedstock sources of hydrogen for
use by DERs.
I. The Town of Ithaca is authorized to implement this CCA Program pursuant to Section
I0(1)(ii)(a)(12) of the New York Municipal Home Rule Law; and 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 April 21, 2016) as may be
amended, including subsequent orders of the Public Service Commission (PSC) issued in
connection with or related to Case No. 14-M-0224, to the extent that orders related to Case
No. 14-M-0224 enable actions by the Town of Ithaca.
J. This Chapter shall be known and may be cited as the "Community Choice Aggregation
(Energy) Program Law" of the Town of Ithaca.
§ 135-2. Definitions.
For purposes of this Chapter, and unless otherwise expressly stated or unless the context otherwise
requires, the terms in this Chapter 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:
ADDRESSABLE CARBON
Shall mean greenhouse gas emissions from electricity, heating, cooling, hot water,
transportation vehicles, sewer waste and solid waste.
AGGREGATED DATA
Shall mean aggregated and anonymized information including the number of Eligible
Consumers by service class, the aggregated peak demand (kW) (for electricity) by month
for the past twelve (12) months, by service class to the extent possible, and the aggregated
energy (kWh) for electricity or volumetric consumption for gas by month for the past twelve
(12) months by service class.
ASSISTANCE PROGRAM PARTICIPANTS (APPs)
Adopted 2022-08-22 Pg. 2
Shall mean low- and medium- income residents so designated by the Tompkins County
Department of Social Services.
BASIC SERVICE
Shall mean the default retail electricity and/or natural gas product received by all customers
who do not opt -out of the CCA Program.
CCA ADMINISTRATOR
Shall mean a third party designated by the Town of Ithaca which shall be duly authorized
to put out for bid the total amount of electricity and natural gas being purchased by Eligible
Consumers and the DERs that will be incorporated into the CCA Program. The CCA
Administrator shall be responsible for CCA Program organization, public outreach, data,
administration, procurement and communications
COOPERATIVE
Shall mean a group formed by building owners and residents who are Eligible Consumers
to invest mutually in onsite DERs.
CUSTOMER -SPECIFIC DATA
Shall mean energy account -specific information, personal data and utility data for all
Eligible Consumers in the municipality eligible for opt -out enrollment based on the terms
of the PSC CCA Order, and the CCA Program design, including the customer of record's
name, mailing address, telephone number, account number, and primary language, if
available, and any customer -specific alternate billing name, address, and phone number.
117.114 FEW : 91-11NUVIli
Shall mean an agreement between the Distribution Utility and the Town of Ithaca that
obligates each party to meet, collectively, (i) all national, state and local laws, regulations
or other government standards relating to the protection of information that identifies or
can be used to identify an individual Eligible Consumer with respect to the CCA
Administrator's or its representative's processing of confidential utility information; (ii)
the Distribution Utility's internal requirements and procedures relating to the protection of
information that identifies or can be used to identify individual Eligible Consumer with
respect to the CCA Administrator's or its representative's processing of confidential
utility information; and (iii) the PSC CCA Order and PSC rules, regulations and
guidelines relating to confidential data.
Shall mean supply service provided by the Distribution Utility to Eligible Consumers who
are not currently receiving service from an Energy Service Company (ESCO). Eligible
Consumers eligible for opt -out enrollment within the Town of Ithaca that receive Default
Service, and have not opted out, will be enrolled in the Program. Eligible Consumers
eligible for opt -in enrollment will be enrolled in the program according to its scheduled
energy supply contract renewals.
DISTRIBUTED ENERGY RESOURCES (DER)
Shall mean local renewable energy projects and energy efficiency measures, shared
renewables like community solar and Shares and Cooperatives, renewable heat and hot
Adopted 2022-08-22 Pg. 3
water systems, energy management, energy storage, microgrid projects, geothermal heat
loop projects, electric vehicles and charging systems, local renewable hydrogen fuel cells,
and other innovative Reforming the Energy Vision (REV) initiatives that optimize system
benefits, target and address load pockets/profile within the CCA Program's zone, and
reduce cost of service for Customers.
DISTRIBUTION UTILITY
Shall mean New York State Electric and Gas Corporation (NYSEG), or any successor
thereto.
ELIGIBLE CONSUMERS (Customers)
Shall mean consumers of electricity and/or natural gas who receive Default Service from
the Distribution Utility as of the Effective Date, or New Consumers that subsequently
become eligible to participate in the Program, at one or more locations within the
geographic boundaries of the CCA Program, except those consumers currently receiving
Default Service that have requested not to have their account information shared by the
Distribution Utility. All Eligible Consumers must reside or be otherwise located within the
geographic boundaries of the CCA Program, as such boundaries exist on the effective date
of the Energy Supply Agreement, where they will be offered basic service through several
enrollment mechanisms based on Public Service Commission rules, including opt -out and
opt -in depending on account size and type, and also be offered additional services requiring
an affirmative choice to invest in a local DER project.
ENERGY EFFICIENCY RETROFITTING AND THERMAL LOAD
ELECTRIFICATION PROGRAM
Shall mean the City of Ithaca's program along with financial partners to determine
potential energy efficiency improvements on residential and commercial buildings, and
provide financing for voluntary loans and leasing programs available to Eligible
Consumers in the City of Ithaca, as well as in the Town of Ithaca, to pay for efficiency
and electrification projects, with an emphasis on serving disadvantaged communities.
ENERGY LOAN ACCOUNT
Shall mean a Shares or Cooperative loan repayment account voluntarily subscribed by a
CCA Customer and administered and/or supervised by the CCA Administrator.
ENERGY SERVICES COMPANY (ESCO)
Shall mean an entity duly authorized to conduct business in the State of New York as an
ESCO.
ENERGY SUPPLY AGREEMENT
Shall mean an agreement between an energy consumer and an Energy Services Company
(ESCO) to provide electricity or gas service to the customer for a fixed or variable price.
For purposes of this chapter, the CCA Administrator would conduct a competitive
procurement on behalf of all Eligible Consumers and would enter into such agreement(s)
with an ESCO to provide power to all such Eligible Consumers in the community that elect
to receive service.
EQUITY
Adopted 2022-08-22 Pg. 4
Shall mean ownership benefits, financial and/or physical, from participating in voluntary
investments in local DER.
MUNICIPAL ACCOUNTS
Shall mean electricity and gas accounts that serve municipal government -related operations.
NEW CONSUMERS
Shall mean consumers of electricity that become Eligible Consumers after the effective date
of the Energy Supply Agreement, including those that opt -in or move into the Town of
Ithaca.
101301-IM'
Shall mean an affirmative decision of an Eligible Consumer, in addition to not opting -out
of the CCA Program as per Public Service Commission rules, to select a premium rate in
order to voluntarily invest in a local DER project in the form of Shares.
OPT -WITH
Shall mean an affinnative decision of an Eligible Consumer, in addition to not opting -out
of the CCA Program as per Public Service Commission rules, to select a premium rate in
order to voluntarily invest in a local DER project in the form of Cooperatives.
16111 11% N to] 16y.11% N 10NEWO[SIONCludy I N
Shall mean Eligible Consumers enrolled in the Program, either because they are consumers
who receive Default Service from the Distribution Utility as of the Effective Date and have
not opted out or are New Consumers.
PROGRAM ORGANIZER
Shall mean a designated local non-profit organization responsible for educating energy
users about participation in the CCA Program, and about participation in the program's
voluntary investment opportunities, as well as supporting the organization of Cooperatives
by neighbors. This group will typically secure participation from local governments and
engage in preliminary outreach and education around CCA.
=� �.,@ 111 1111
Shall mean the PSC's Order Authorizing Framework for Community Choice Aggregation
Opt -Out Program, issued on April 21, 2016 in Case 14-M-0224, "Proceeding on Motion of
the Commission to Enable Community Choice Aggregation Programs."
PUBLIC SERVICE COMMISSION (PSC)
Shall mean New York State Public Service Commission.
W1 off �Mbl
Shall mean units of ownership by a Customer in local DERs, whether in a nearby building
through individual enrollment in a designated CCA Shares premium rate and Energy Loan,
or onsite through a Cooperative enrollment in a designated CCA Cooperative premium rate
and Energy Loan account.
SUPPLIERS
Adopted 2022-08-22 Pg. 5
Shall mean (i) ESCOs that procure electric power and natural gas for Eligible Consumers
in connection with this Chapter, (ii) developers and operators of DERs, or other entities that
procure and resell electricity or natural gas or are involved in aspects of DERs.
§ 135-3. Establishment of a Community Choice Aggregation (Energy) Program.
A. A Community Choice Aggregation (Energy) Program is hereby established by the Town of
Ithaca, whereby the Town of Ithaca may implement a CCA Program to the full extent
permitted by the PSC CCA Order and this chapter, as set forth more fully herein.
B. The Town of Ithaca may act as aggregator for the sale of electric supply, gas supply, or both
to Eligible Consumers, and may enter into contracts with one or more Suppliers for energy
supply and other services on behalf of Eligible Consumers.
C. The Town of Ithaca may select a third party as CCA Administrator for such purpose to the
full extent permitted by the Order, as set forth more fully herein, and shall include a process
for other municipalities in Tompkins County to join the CCA Program.
D. Town of Ithaca may enter into an intermunicipal agreement with the City of Ithaca and other
municipalities in Tompkins County, and potentially municipalities in adjoining counties,
who join the CCA Program, for the purpose of sharing administrative resources to support
Eligible Consumers' access to the City's Solar Access, Building Electrification and
Decarbonization program resources, and shall include a process for other municipalities in
Tompkins County to offer their Eligible CCA customers such resources to join the CCA
Program
E. As detailed in the PSC CCA Order, the PSC will need to approve an Implementation Plan
before the CCA Program can begin operations. The Implementation Plan shall be prepared
for CCA Administrator and approved by the Town before it is submitted to the PSC for
approval. The Implementation Plan shall describe the program and its goals, plans for value-
added services, and DER voluntary investment options that will be included in requests for
proposals (RFPs) and/or power purchase agreements, contracts and/or bids, a public
outreach plan, and drafts of written communications with its residents, including opt -out
letters. The Plan must also include, when applicable, information on APP guaranteed
savings program and community distributed generation program implementation.
F. The CCA Administrator, may act as Energy Loan Account administrator to engage,
prequalify, list, and track the performance of the loan accounts of Eligible Consumers who
elect to voluntarily invest in DERs
G. The CCA Administrator may directly administer opt -out notification communications to
Eligible Consumers and may offer two additional options; (i) to "Opt -Up" for a loan to
purchase shares in a neighborhood DER project, and (ii) an option to "Opt -With"
neighbors in a Cooperative to own and operate onsite DERs.
H. The CCA Administrator may offer a premium product to any Eligible Consumer to
purchase Shares in DERs or to join with neighbors to form a Cooperative to directly own
and operate DERs.
Adopted 2022-08-22 Pg. 6
1. The CCA Administrator may create a system of credits or direct payments to compensate
each participant for such Equity and may transfer collected premium payments into the
Customer's Energy Loan Account to facilitate funding including through the City of
Ithaca's Energy Efficiency Retrofitting and Thermal Load Electrification Program, or
other sources.
J. The CCA Administrator may designate one or more Program Organizers to assist in the
education and engagement of Eligible Consumers and municipalities in Tompkins County
to participate in the CCA Program.
K. The Town of Ithaca may designate all. Town -owned properties and rights of way
available, where allowed by law, for accommodation and connection of DERs, including
microgrids, Electric Vehicle chargers, and geothermal micro districts, and authorizes the
Department of Public Works to develop protocols for DER access.
L. The Town of Ithaca may make up to 49% of equity in any municipally sited DERs
available for voluntary Share investments by Eligible Consumers.
M. The operation and ownership of the utility service shall remain with the Distribution Utility.
The Town of Ithaca's participation in a CCA Program constitutes neither the purchase of a
public utility system, nor the furnishing of utility service. The CCA Program shall 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 Eligible
Consumers.
§ 135-4. Eligibility.
A. All consumers within the Town of Ithaca, including residential and non-residential,
regardless of size, shall be eligible to participate in the CCA Program's Basic Service,
provided that different methods of enrollment are required to be used for different NYSEG
customer classifications.
B. All Participating Consumers that are members of New York State Electric & Gas (NYSEG)
SC 1 Residential Service, SC 6 General Service and Gas SC 1 Residential Service, SC 2
General Service shall be enrolled on an opt -out basis except for consumers (i) that are
already taking service from an ESCO, (ii) that have placed a freeze or block on their
account, or (iii) for whom inclusion in the CCA Program will interfere with a choice the
customer has already made to take service pursuant to a special rate. Those consumers may
be enrolled on an opt -in basis, alongside all other NYSEG service classifications, including
(i) for electricity service, SC2 General Service with Demand Metering, SC3 Primary
Service 25 KW or more, SC5 Outdoor Lighting Service, SC7 Large General Service with
Time -of -Use Metering, SC8 Residential - Day Night Service, SC9 General Service - Day
Night Service, SCIO Cogeneration or Small Power Production/Sale of Energy to the
Corporation, SC 1 Standby Service, SC12 Residential Service with Time -of -Use Metering,
SC13 Competitive Alternative Industrial Service and SC1.4 Large Economic Development
Service; and (ii), for gas service, SC3 Interruptible Sales Service, SC4 Natural Gas Motor
Vehicles, SC5 Seasonal Gas Cooling Service, SC6 Standby Sales Service, SCIO Non -
Adopted 2022-08-22 Pg. 7
Residential Distributed Generation Firm Sales Service, SC11 Residential Distributed
Generation Firm Sales Service. The Town of Ithaca may include all of its electricity and
natural gas accounts to participate as an opt -in customer in the CCA Program at the earliest
possible date, or for any smaller accounts eligible for opt -out enrollment, may participate
through the opt -out process.
C. New Consumers who's electric and/or gas NYSEG meters are eligible for opt -out
enrollment, including SC1 Residential Service 1 and SC6 General Services 6, shall be
enrolled in Basic Service on an opt -out basis. New Consumers whose meters are eligible
for opt -in service shall be offered service and enrolled on an opt -in basis.
D. The Town of Ithaca, through its CCA Administrator, will actively seek to offer service, on
an opt -out basis, to Low -to -Moderate -Income (LMI) residents who are Assistance Program
Participants (APPs) and are enrolled in products that comply with requirements for ESCO
service to APPs at the time of enrollment. The CCA Administrator will consult with local
and state social services program administrators in considering whether and how to include
APPs, specifically where social services organizations receive and pay the resident's energy
bill.
E. All Customers of the CCA Program shall be eligible to participate in Shares and
Cooperatives, provided that ability to participate shall depend upon the availability of DER
projects and financing.
F. The CCA Administrator, on behalf of the Town of Ithaca, shall issue one or more requests
for proposals to Suppliers to provide energy and related services to participants and may
then award a contract, in accordance with the CCA Program, and after consultation with
and authorization by the involved municipalities as per an intermunicipal agreement.
G. The CCA Administrator will request individual customer data for the accounts of Eligible
Consumers located within the jurisdictional boundaries of the Town of Ithaca from the
Distribution Utility in accordance with the CCA Program.
H. The CCA Administrator and the selected energy Supplier will notify Eligible Consumers of
the contract terms and their opportunity to opt out of the CCA Program.
1. In accordance with and for purposes of the Order, the existing Distribution Utility, New
York State Electric & Gas Corporation, will provide to the CCA Administrator aggregate
and customer -specific data (including usage data, capacity tag obligations, account
numbers, and service addresses) of all Eligible Customers in the Town of Ithaca not
currently enrolled with an ESCO.
J. The CCA Administrator and the Town of Ithaca will protect customer information as
required by law, subject to the Order and the limitations of the New York State Freedom of
Information Law.
§ 135-5. Opt -Out Process.
Adopted 2022-08-22 Pg. 8
A. An opt -out letter, printed on municipal letterhead, shall be mailed to Eligible Consumers
at least 30 days prior to Eligible Consumer enrollment. The opt -out letter shall include
information both on the CCA Program and the contracts signed with the selected ESCO
and/or DER provider(s), including specific details on rates, fees, services, contract terms,
cancellation fee, and methods for opting out of the CCA Program. The letter shall explain
that Eligible Consumers that do not opt -out will be enrolled in the CCA Program under
the contract terms and that information on those Eligible Consumers, including energy
usage data and Assistance Program Participant (APP) status, will be provided to the
ESCO and/or the DER providers. The opt -out letter shall also explain that the CCA
Administrator will be authorized to enroll Customers in DER projects through an Opt -Up
and Opt -With process as defined in this chapter, communicate such enrollment to the
Distribution Utility under relevant PSC-approved rules and tariffs so that Customers
signing up to participate in investment may receive applicable billing and credits from the
Distribution Utility, and communicate Opt -Up and Opt -With enrollment information to
the CCA Administrator for Energy Loan Account processing and management.
B. All Eligible Consumers shall have the option to opt -out of the CCA Program. Per the
Public Service Commission's CCA Framework Order, Customers will be permitted to
cancel CCA Program service any time before the end of the third billing cycle of a new
contract period without penalty or other charges.
C. Termination fees shall not be charged to Customers that cancel their CCA Program
service as a result of moving out of the service territory of the CCA Program.
§ 135-6. Opt -In Process.
Eligible Consumers with electric and/or gas accounts that are eligible for opt -in enrollment may
be offered service on an opt -in basis, based on capacity and opportunity, according to the supply
contract renewal schedule of the CCA Program.
§ 135-7. Customer Service.
Customers shall be provided customer service by the CCA Administrator, including a toll -free
telephone number available during normal business hours (9:00 A.M.- 5:00 P.M. Eastern Time,
Monday through Friday) to resolve concerns, answer questions, and transact business with respect
to the service received from the Supplier, as well as a secure customer -specific online account,
scheduled direct mail, and messages inserted into Town of Ithaca scheduled direct mail and public
notices.
§ 1.35-8. Data Protection Requirements.
A. Town of Ithaca departments and other CCA Program member municipalities involved in
supporting the CCA Program and Energy Loan Shares Service and Cooperative Service,
will share energy data and other data with its CCA Administrator to tailor DER products to
Eligible Customers, facilitate customer engagement, program administration, operation,
billing, and collection.
Adopted 2022-08-22 Pg. 9
B. The Town of Ithaca may request Aggregated Data and Customer -Specific Data from the
Distribution Utility provided, however, that this request for Customer -Specific Data is
limited to only those Eligible Consumers who did not opt -out once the initial opt -out period
has closed.
C. Customer -Specific Data shall be protected in a manner compliant with, collectively, (i) all.
national, state and local laws, regulations or other government standards relating to the
protection of information that identifies or can be used to identify an individual with respect
to the CCA Administrator's and Town of Ithaca's processing of confidential utility
information; (ii) the utility's internal requirements and procedures relating to the protection
of information that identifies or can be used to identify an individual with respect to the
Town of Ithaca or its representative's processing of confidential utility information; and
(iii) the PSC CCA Order and PSC rules, regulations and guidelines relating to confidential
data.
D. The Town of Ithaca will enter into a Data Security Agreement with the Distribution Utility
for the purpose of protecting customer data.
§ 135-9. Administration Fee.
The Town of Ithaca may collect, or cause to be collected, funds from Customer payments to pay
the designated CCA Administrator for administrative costs associated with running the CCA
Program. These fees will be included in any agreement signed with CCA Administrator and an
ESCO.
§ 135-1.0. Loan Account Management Fee.
The Town of Ithaca may collect, or cause to be collected, funds from Customer payments to pay
for administrative costs associated with running a DER Loan Account service.
§ 135-11. Reporting.
A. Annual reports shall be prepared by the CCA Administrator and filed with the Town Board
of the Town of Ithaca by March 31 of each year and cover the previous calendar year.
B. Annual reports shall include, at a minimum: number of Customers served; number of
Customers canceling during the year; number of complaints received; commodity prices
paid; value-added services provided during the year (e.g., installation of DER or other clean
energy services); and administrative costs collected. Information shall be broken down by
municipality, where applicable. The first report shall also include the number of Customers
who opted -out in response to the initial opt -out letter or letters.
C. If a CCA Program Energy Supply Agreement will expire less than one year following the
filing of the annual report, the report must identify current plans for soliciting a new
contract, negotiating an extension, or ending the CCA Program."
§1.35-12. Severability.
Adopted 2022-08-22 Pg. 10
The invalidity or unenforceability of any section, subsection, paragraph, sentence, clause,
provision, or phrase of the aforementioned sections, as declared by the valid judgment of any court
of competent jurisdiction, shall not affect the validity or enforceability of any other section,
subsection, paragraph, sentence, clause, provision, or phrase, which shall remain in full force and
effect.
§1.35-13. Effective Date.
This local law shall take effect immediately upon its filing with the New York State Secretary of
State.
Adopted 2022-08-22 Pg. 11