senate Bill S1739

Amended

Provides zero and low interest loans or loan interest rate reduction for energy improvement projects to stimulate the growth and development of small businesses

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 09 / Jan / 2013
    • REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS
  • 08 / Jan / 2014
    • REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS
  • 04 / Feb / 2014
    • AMEND AND RECOMMIT TO CORPORATIONS, AUTHORITIES AND COMMISSIONS
  • 04 / Feb / 2014
    • PRINT NUMBER 1739A
  • 08 / May / 2014
    • AMEND AND RECOMMIT TO CORPORATIONS, AUTHORITIES AND COMMISSIONS
  • 08 / May / 2014
    • PRINT NUMBER 1739B

Summary

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.

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Bill Details

Versions:
S1739
S1739A
S1739B
Legislative Cycle:
2013-2014
Current Committee:
Senate Corporations, Authorities And Commissions
Law Section:
New York State Urban Development Corporation Act
Laws Affected:
Add §16-v, amd §16-m, UDC Act
Versions Introduced in Previous Legislative Cycles:
2011-2012: S3014
2009-2010: A10474, A3945
2007-2008: A5494A

Sponsor Memo

BILL NUMBER:S1739

TITLE OF BILL:
An act
to amend the New York state urban development corporation act, in
relation to creating the small business energy loan program

PURPOSE OR GENERAL IDEA OF BILL:
A loan program would be established to expand on existing programs
operated by the New York State Energy Research Development Authority
to make energy audits and energy efficient technology implementation
more readily available to small businesses in economically distressed
areas. This
program would be structured according to the existing NYSERDA low
interest loan program, whereby small commercial businesses are
eligible to have certified energy audit specialists conduct energy
audits of the business and make recommendations for energy efficient
activities, upgrades and technology installations. If the business
chooses the energy efficient activities and technologies recommended
by the audit, the customer could access a low-interest loan fund to
reduce the cost of installing such measures.

SUMMARY OF SPECIFIC PROVISIONS:
This bill would establish a small business energy loan fund to provide
zero or low interest loans up to one hundred thousand dollars and
loan interest rate reductions to small businesses in economically
distressed areas for energy efficiency projects and advanced energy
technologies. 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 NYSERDA'S energy audit program
that helps small businesses make informed electrical energy decisions
and implement energy efficiency strategies.

JUSTIFICATION:
The state's chronically high energy costs are often cited by
businesses as a key factor for why New York-based businesses and New
York-made products are not competitive in national and global
markets. 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.

PRIOR LEGISLATIVE HISTORY:
2005-2006: A.8352
2007-2008: A.5494a (Passed Assembly & Died in Senate)

FISCAL IMPLICATIONS: Subject to appropriations.

EFFECTIVE DATE:
Upon enactment of the bill into law, with provisions.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  1739

                       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

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-
TIES LAW.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02720-01-3

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
CENSUS TRACTS.
  (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
AVAILABLE.
  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-
TATION.
  (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.

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