Bill Text: NY S01739 | 2013-2014 | General Assembly | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Provides zero and low interest loans or loan interest rate reduction for energy improvement projects to stimulate the growth and development of small businesses and jobs.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2014-05-08 - PRINT NUMBER 1739B [S01739 Detail]
Download: New_York-2013-S01739-Amended.html
Bill Title: Provides zero and low interest loans or loan interest rate reduction for energy improvement projects to stimulate the growth and development of small businesses and jobs.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2014-05-08 - PRINT NUMBER 1739B [S01739 Detail]
Download: New_York-2013-S01739-Amended.html
S T A T E O F N E W Y O R K ________________________________________________________________________ 1739--A 2013-2014 Regular Sessions I N S E N A T E (PREFILED) January 9, 2013 ___________ Introduced by Sens. ESPAILLAT, ADDABBO, MONTGOMERY -- read twice and ordered printed, and when printed to be committed to the Committee on Corporations, Authorities and Commissions -- recommitted to the Committee on Corporations, Authorities and Commissions in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the New York state urban development corporation act, in relation to creating the small business energy loan program THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: 1 Section 1. The legislature hereby finds and declares that the state's 2 chronically high energy costs are often cited as a key factor for why 3 New York-based businesses and New York-made products are not competitive 4 in national and global markets. The legislature further finds that the 5 state's economic expansion is tied to the growth and development of 6 small businesses. By reducing a primary cost component in a rapidly 7 growing sector of the state's economy, those businesses are rendered 8 more competitive, and thus help to better secure New York-based jobs. In 9 addition, thriving businesses and communities will augment the tax base, 10 which in distressed communities is disproportionately lower than in 11 other areas of the state. 12 Therefore, the legislature seeks to provide funds to reduce high ener- 13 gy costs, via a zero or low interest loan, or loan interest rate 14 reduction program for energy efficiency projects to stimulate the growth 15 and development of small businesses and jobs in New York state. 16 S 2. Section 1 of chapter 174 of the laws of 1968, constituting the 17 New York state urban development corporation act, is amended by adding a 18 new section 16-w to read as follows: 19 S 16-W. SMALL BUSINESS ENERGY LOAN PROGRAM. 1. DEFINITIONS. FOR THE 20 PURPOSE OF THIS SECTION: EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD02720-03-4 S. 1739--A 2 1 (A) "AUTHORITY" SHALL MEAN THE NEW YORK STATE ENERGY RESEARCH AND 2 DEVELOPMENT AUTHORITY AS DEFINED IN SECTION 1851 OF THE PUBLIC AUTHORI- 3 TIES LAW. 4 (B) "ECONOMICALLY DISTRESSED AREAS" SHALL MEAN AREAS AS DETERMINED BY 5 THE CORPORATION, MEETING CRITERIA INDICATIVE OF ECONOMIC DISTRESS, 6 INCLUDING CONSIDERATION OF UNEMPLOYMENT RATE; RATE OF EMPLOYMENT CHANGE; 7 NUMBERS AND PERCENTAGES OF LOW-INCOME PERSONS; PER CAPITA INCOME AND PER 8 CAPITA REAL PROPERTY WEALTH; SUCH OTHER INDICATORS OF DISTRESS AS THE 9 CORPORATION SHALL DETERMINE. ECONOMICALLY DISTRESSED AREAS MAY INCLUDE 10 DESIGNATIONS SUCH AS CITIES, MUNICIPALITIES, BLOCK NUMBERING AREAS, AND 11 CENSUS TRACTS. 12 (C) "LOAN FUND" SHALL MEAN THE SMALL BUSINESS ENERGY LOAN FUND ESTAB- 13 LISHED PURSUANT TO THIS SECTION. 14 (D) "SMALL BUSINESSES" SHALL MEAN BUSINESSES WHICH MEET THE FOLLOWING 15 CRITERIA: (I) INDEPENDENTLY OWNED AND OPERATED, AND NOT DOMINANT IN 16 THEIR FIELD, (II) HEADQUARTERED IN NEW YORK STATE, WITH PRINCIPAL BUSI- 17 NESS OPERATIONS LOCATED IN NEW YORK STATE, AND (III) EMPLOYS ONE HUNDRED 18 OR LESS PERSONS. 19 2. (A) THE CORPORATION, WITH THE ASSISTANCE OF THE AUTHORITY, SHALL 20 ESTABLISH A SMALL BUSINESS ENERGY LOAN FUND TO PROVIDE ZERO OR LOW 21 INTEREST LOANS AND LOAN INTEREST RATE REDUCTIONS TO SMALL BUSINESSES IN 22 ECONOMICALLY DISTRESSED AREAS FOR ENERGY EFFICIENCY PROJECTS AND 23 ADVANCED ENERGY TECHNOLOGIES. 24 (B) IN ORDER TO BE ELIGIBLE TO PARTICIPATE IN THIS LOAN PROGRAM, SMALL 25 BUSINESSES IN ECONOMICALLY DISTRESSED AREAS MUST HAVE AN ENERGY AUDIT 26 PROVIDED THROUGH THE AUTHORITY'S ENERGY AUDIT PROGRAM THAT HELPS SMALL 27 BUSINESSES MAKE INFORMED ELECTRICAL ENERGY DECISIONS AND IMPLEMENT ENER- 28 GY EFFICIENCY STRATEGIES. TECHNOLOGIES IDENTIFIED IN SUCH AUDIT SHALL 29 BECOME ELIGIBLE TECHNOLOGIES FOR WHICH MONIES FOR THE LOAN FUND MAY BE 30 AVAILABLE. 31 3. (A) THE CORPORATION SHALL, WITHIN AVAILABLE APPROPRIATIONS, PROVIDE 32 FINANCIAL ASSISTANCE FROM THE LOAN FUND TO ELIGIBLE SMALL BUSINESSES IN 33 ECONOMICALLY DISTRESSED AREAS. 34 (B) THE CORPORATION IS AUTHORIZED TO PROVIDE ZERO OR LOW INTEREST 35 LOANS FROM THE LOAN FUND FOR ELIGIBLE IMPROVEMENTS. TO BE ELIGIBLE FOR 36 SUCH LOANS, A SMALL BUSINESS IN AN ECONOMICALLY DISTRESSED AREA SHALL 37 IDENTIFY AN ELIGIBLE IMPROVEMENT PROJECT AND PROVIDE NECESSARY DOCUMEN- 38 TATION. 39 (C) (I) THE CORPORATION IS AUTHORIZED TO PROVIDE LOAN INTEREST RATE 40 REDUCTIONS FROM THE LOAN FUND FOR ELIGIBLE IMPROVEMENTS. TO BE ELIGIBLE 41 FOR AN INTEREST RATE REDUCTION, A SMALL BUSINESS IN AN ECONOMICALLY 42 DISTRESSED AREA SHALL: (1) IDENTIFY AN ELIGIBLE IMPROVEMENT PROJECT AND 43 PROVIDE NECESSARY DOCUMENTATION, AND (2) RECEIVE A LOAN COMMITMENT FROM 44 A PARTICIPATING LENDER, INCLUDING BANKS, CREDIT UNIONS, COMMUNITY DEVEL- 45 OPMENT FINANCIAL INSTITUTIONS, AND FARM CREDIT ASSOCIATIONS. 46 (II) THE CORPORATION IS AUTHORIZED TO BUY DOWN THE PARTICIPATING LEND- 47 ER'S INTEREST RATE BY UP TO FOUR HUNDRED BASIS POINTS OR FOUR PERCENT 48 THROUGH THE LOAN FUND. SUCH INTEREST RATE REDUCTIONS SHALL BE AVAILABLE 49 FOR THE LESSER OF TEN YEARS OR THE LIFE OF THE LOAN. 50 (D) LOANS PROVIDED BY THE CORPORATION OR ISSUED BY A PARTICIPATING 51 LENDER SHALL NOT EXCEED ONE HUNDRED THOUSAND DOLLARS. 52 4. ENERGY EFFICIENCY IMPROVEMENTS ELIGIBLE FOR ZERO OR LOW INTEREST 53 LOANS OR LOAN INTEREST RATE REDUCTIONS THROUGH THE LOAN FUND SHALL 54 INCLUDE, BUT NOT BE LIMITED TO: 55 (A) PRE-QUALIFIED MEASURES THAT ARE PROVEN COST EFFECTIVE INVESTMENTS 56 WHICH REDUCE ENERGY USE; S. 1739--A 3 1 (B) CUSTOM MEASURES THAT PAY FOR THEMSELVES IN TEN YEARS THROUGH 2 REDUCED ENERGY USE; 3 (C) PROCESS IMPROVEMENT MEASURES THAT REDUCE MANUFACTURING ENERGY USE 4 ON A COST-PER-UNIT BASIS; AND 5 (D) RENEWABLE TECHNOLOGIES THAT USE THE SUN, WIND, WATER OR GROUND TO 6 GENERATE HEAT OR POWER. 7 5. APPLICATIONS FOR ASSISTANCE PURSUANT TO THIS SECTION SHALL BE 8 REVIEWED AND EVALUATED BY THE CORPORATION IN COOPERATION WITH THE 9 AUTHORITY PURSUANT TO ELIGIBILITY REQUIREMENTS AND CRITERIA SET FORTH IN 10 THE RULES AND REGULATIONS PROMULGATED BY THE CORPORATION. 11 6. THE CORPORATION AND THE AUTHORITY SHALL SUBMIT AN ANNUAL WRITTEN 12 REPORT TO THE SPEAKER OF THE ASSEMBLY AND THE TEMPORARY PRESIDENT OF THE 13 SENATE IDENTIFYING THE NUMBER OF BUSINESSES ASSISTED THROUGH THE LOAN 14 FUND PROGRAM, AND THE TYPES OF IMPROVEMENTS IMPLEMENTED AND ENERGY COST 15 SAVINGS REALIZED BY THE SMALL BUSINESSES ASSISTED BY THIS PROGRAM. 16 S 3. Paragraph (m) of subdivision 1 of section 16-m of section 1 of 17 chapter 174 of the laws of 1968, constituting the New York state urban 18 development corporation act, as added by chapter 467 of the laws of 19 2011, is amended and a new paragraph (o) is added to read as follows: 20 (m) Assistance to businesses that conduct basic, applied or transla- 21 tional research that leads to the development of products that improve 22 human health or agriculture and that require approval by the federal 23 food and drug administration, in order to create or expand facilities, 24 in accordance with good manufacturing practice regulations, that will 25 create or retain more than fifty jobs. For purposes of this paragraph, 26 good manufacturing practice regulations refers to those regulations 27 promulgated by the United States Food and Drug Administration under the 28 authority of the Federal Food, Drug and Cosmetic Act[.]; 29 (O) LOANS, LOAN GUARANTEES, INTEREST SUBSIDY GRANTS AND DIRECT GRANTS 30 TO SMALL BUSINESSES UNDER SECTION SIXTEEN-W OF THIS ACT FOR ENERGY EFFI- 31 CIENCY PROJECTS AND ADVANCED ENERGY TECHNOLOGIES. 32 S 4. This act shall take effect immediately, provided, however, that 33 the amendments to section 16-m of the urban development corporation act 34 made by section three of this act shall not affect the expiration of 35 such section and shall expire and be deemed repealed therewith.