S T A T E O F N E W Y O R K
2013-2014 Regular Sessions
I N S E N A T E
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
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:
Section 1. The legislature hereby finds and declares that the state's
chronically high energy costs are often cited as a key factor for why
New York-based businesses and New York-made products are not competitive
in national and global markets. The legislature further finds that the
state's economic expansion is tied to the growth and development of
small businesses. By reducing a primary cost component in a rapidly
growing sector of the state's economy, those businesses are rendered
more competitive, and thus help to better secure New York-based jobs. In
addition, thriving businesses and communities will augment the tax base,
which in distressed communities is disproportionately lower than in
other areas of the state.
Therefore, the legislature seeks to provide funds to reduce high ener-
gy costs, via a zero or low interest loan, or loan interest rate
reduction program for energy efficiency projects to stimulate the growth
and development of small businesses and jobs in New York state.
S 2. Section 1 of chapter 174 of the laws of 1968, constituting the
New York state urban development corporation act, is amended by adding a
new section 16-v to read as follows:
S 16-V. SMALL BUSINESS ENERGY LOAN PROGRAM. 1. DEFINITIONS. FOR THE
PURPOSE OF THIS SECTION:
(A) "AUTHORITY" SHALL MEAN THE NEW YORK STATE ENERGY RESEARCH AND
DEVELOPMENT AUTHORITY AS DEFINED IN SECTION 1851 OF THE PUBLIC AUTHORI-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
S. 1739 2
(B) "ECONOMICALLY DISTRESSED AREAS" SHALL MEAN AREAS AS DETERMINED BY
THE CORPORATION, MEETING CRITERIA INDICATIVE OF ECONOMIC DISTRESS,
INCLUDING CONSIDERATION OF UNEMPLOYMENT RATE; RATE OF EMPLOYMENT CHANGE;
NUMBERS AND PERCENTAGES OF LOW-INCOME PERSONS; PER CAPITA INCOME AND PER
CAPITA REAL PROPERTY WEALTH; SUCH OTHER INDICATORS OF DISTRESS AS THE
CORPORATION SHALL DETERMINE. ECONOMICALLY DISTRESSED AREAS MAY INCLUDE
DESIGNATIONS SUCH AS CITIES, MUNICIPALITIES, BLOCK NUMBERING AREAS, AND
(C) "LOAN FUND" SHALL MEAN THE SMALL BUSINESS ENERGY LOAN FUND ESTAB-
LISHED PURSUANT TO THIS SECTION.
(D) "SMALL BUSINESSES" SHALL MEAN BUSINESSES WHICH MEET THE FOLLOWING
CRITERIA: (I) INDEPENDENTLY OWNED AND OPERATED, AND NOT DOMINANT IN
THEIR FIELD, (II) HEADQUARTERED IN NEW YORK STATE, WITH PRINCIPAL BUSI-
NESS OPERATIONS LOCATED IN NEW YORK STATE, AND (III) EMPLOYS ONE HUNDRED
OR LESS PERSONS.
2. (A) THE CORPORATION, WITH THE ASSISTANCE OF THE AUTHORITY, SHALL
ESTABLISH A SMALL BUSINESS ENERGY LOAN FUND TO PROVIDE ZERO OR LOW
INTEREST LOANS AND LOAN INTEREST RATE REDUCTIONS TO SMALL BUSINESSES IN
ECONOMICALLY DISTRESSED AREAS FOR ENERGY EFFICIENCY PROJECTS AND
ADVANCED ENERGY TECHNOLOGIES.
(B) IN ORDER TO BE ELIGIBLE TO PARTICIPATE IN THIS LOAN PROGRAM, SMALL
BUSINESSES IN ECONOMICALLY DISTRESSED AREAS MUST HAVE AN ENERGY AUDIT
PROVIDED THROUGH THE AUTHORITY'S ENERGY AUDIT PROGRAM THAT HELPS SMALL
BUSINESSES MAKE INFORMED ELECTRICAL ENERGY DECISIONS AND IMPLEMENT ENER-
GY EFFICIENCY STRATEGIES. TECHNOLOGIES IDENTIFIED IN SUCH AUDIT SHALL
BECOME ELIGIBLE TECHNOLOGIES FOR WHICH MONIES FOR THE LOAN FUND MAY BE
3. (A) THE CORPORATION SHALL, WITHIN AVAILABLE APPROPRIATIONS, PROVIDE
FINANCIAL ASSISTANCE FROM THE LOAN FUND TO ELIGIBLE SMALL BUSINESSES IN
ECONOMICALLY DISTRESSED AREAS.
(B) THE CORPORATION IS AUTHORIZED TO PROVIDE ZERO OR LOW INTEREST
LOANS FROM THE LOAN FUND FOR ELIGIBLE IMPROVEMENTS. TO BE ELIGIBLE FOR
SUCH LOANS, A SMALL BUSINESS IN AN ECONOMICALLY DISTRESSED AREA SHALL
IDENTIFY AN ELIGIBLE IMPROVEMENT PROJECT AND PROVIDE NECESSARY DOCUMEN-
(C) (I) THE CORPORATION IS AUTHORIZED TO PROVIDE LOAN INTEREST RATE
REDUCTIONS FROM THE LOAN FUND FOR ELIGIBLE IMPROVEMENTS. TO BE ELIGIBLE
FOR AN INTEREST RATE REDUCTION, A SMALL BUSINESS IN AN ECONOMICALLY
DISTRESSED AREA SHALL: (1) IDENTIFY AN ELIGIBLE IMPROVEMENT PROJECT AND
PROVIDE NECESSARY DOCUMENTATION, AND (2) RECEIVE A LOAN COMMITMENT FROM
A PARTICIPATING LENDER, INCLUDING BANKS, CREDIT UNIONS, COMMUNITY DEVEL-
OPMENT FINANCIAL INSTITUTIONS, AND FARM CREDIT ASSOCIATIONS.
(II) THE CORPORATION IS AUTHORIZED TO BUY DOWN THE PARTICIPATING LEND-
ER'S INTEREST RATE BY UP TO FOUR HUNDRED BASIS POINTS OR FOUR PERCENT
THROUGH THE LOAN FUND. SUCH INTEREST RATE REDUCTIONS SHALL BE AVAILABLE
FOR THE LESSER OF TEN YEARS OR THE LIFE OF THE LOAN.
(D) LOANS PROVIDED BY THE CORPORATION OR ISSUED BY A PARTICIPATING
LENDER SHALL NOT EXCEED ONE HUNDRED THOUSAND DOLLARS.
4. ENERGY EFFICIENCY IMPROVEMENTS ELIGIBLE FOR ZERO OR LOW INTEREST
LOANS OR LOAN INTEREST RATE REDUCTIONS THROUGH THE LOAN FUND SHALL
INCLUDE, BUT NOT BE LIMITED TO:
(A) PRE-QUALIFIED MEASURES THAT ARE PROVEN COST EFFECTIVE INVESTMENTS
WHICH REDUCE ENERGY USE;
(B) CUSTOM MEASURES THAT PAY FOR THEMSELVES IN TEN YEARS THROUGH
REDUCED ENERGY USE;
S. 1739 3
(C) PROCESS IMPROVEMENT MEASURES THAT REDUCE MANUFACTURING ENERGY USE
ON A COST-PER-UNIT BASIS; AND
(D) RENEWABLE TECHNOLOGIES THAT USE THE SUN, WIND, WATER OR GROUND TO
GENERATE HEAT OR POWER.
5. APPLICATIONS FOR ASSISTANCE PURSUANT TO THIS SECTION SHALL BE
REVIEWED AND EVALUATED BY THE CORPORATION IN COOPERATION WITH THE
AUTHORITY PURSUANT TO ELIGIBILITY REQUIREMENTS AND CRITERIA SET FORTH IN
THE RULES AND REGULATIONS PROMULGATED BY THE CORPORATION.
6. THE CORPORATION AND THE AUTHORITY SHALL SUBMIT AN ANNUAL WRITTEN
REPORT TO THE SPEAKER OF THE ASSEMBLY AND THE TEMPORARY PRESIDENT OF THE
SENATE IDENTIFYING THE NUMBER OF BUSINESSES ASSISTED THROUGH THE LOAN
FUND PROGRAM, AND THE TYPES OF IMPROVEMENTS IMPLEMENTED AND ENERGY COST
SAVINGS REALIZED BY THE SMALL BUSINESSES ASSISTED BY THIS PROGRAM.
S 3. Paragraph (m) of subdivision 1 of section 16-m of section 1 of
chapter 174 of the laws of 1968, constituting the New York state urban
development corporation act, as added by chapter 467 of the laws of
2011, is amended and a new paragraph (o) is added to read as follows:
(m) Assistance to businesses that conduct basic, applied or transla-
tional research that leads to the development of products that improve
human health or agriculture and that require approval by the federal
food and drug administration, in order to create or expand facilities,
in accordance with good manufacturing practice regulations, that will
create or retain more than fifty jobs. For purposes of this paragraph,
good manufacturing practice regulations refers to those regulations
promulgated by the United States Food and Drug Administration under the
authority of the Federal Food, Drug and Cosmetic Act[.];
(O) LOANS, LOAN GUARANTEES, INTEREST SUBSIDY GRANTS AND DIRECT GRANTS
TO SMALL BUSINESSES UNDER SECTION SIXTEEN-V OF THIS ACT FOR ENERGY EFFI-
CIENCY PROJECTS AND ADVANCED ENERGY TECHNOLOGIES.
S 4. This act shall take effect immediately, provided, however, that
the amendments to section 16-m of the urban development corporation act
made by section three of this act shall not affect the expiration of
such section and shall expire and be deemed repealed therewith.