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

                                  1120

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced by Sens. MAZIARZ, MONTGOMERY -- read twice and ordered print-
  ed, 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 New York state innovative energy and environ-
  mental technology program

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1.  Legislative  intent.  The  legislature  hereby  finds  and
declares  that  the success of innovative energy and environmental tech-
nology-oriented businesses with growth potential  is  essential  to  the
continued  economic health and security of New York state. It is further
found that the development of new products to assist  mature  industries
undergoing  dramatic changes or facing increasing international competi-
tion with reducing energy costs and complying with  environmental  regu-
lations,  can  serve to retain, and even increase, employment.  However,
commercialization of these products  is  restrained  as  numerous  small
businesses are limited by lack of early stage financing.
  Therefore,  the  legislature seeks to provide early stage funds, via a
grants program, to stimulate the creation of a substantial number of new
businesses and jobs in the energy and environmental sector.
  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. NEW YORK STATE INNOVATIVE ENERGY AND ENVIRONMENTAL TECHNOLOGY
PROGRAM. 1. DEFINITIONS. AS USED IN THIS SUBSECTION, THE FOLLOWING WORDS
AND TERMS SHALL HAVE THE FOLLOWING MEANINGS:
  (A) "INNOVATIVE ENERGY TECHNOLOGIES" SHALL MEAN ALL  METHODS  USED  TO
PRODUCE,  DISTRIBUTE,  CONSERVE  AND  STORE ENERGY BY METHODS WHICH HAVE
SIGNIFICANT POTENTIAL FOR COMMERCIALIZATION, WITH EMPHASIS ON  RENEWABLE

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

                                                           LBD02297-01-3

S. 1120                             2

ENERGY  SOURCES  INCLUDING, BUT NOT LIMITED TO, SOLAR, WIND, FUEL CELLS,
ADVANCED HYDROELECTRIC, AND BIOMASS POWER CONVERSION TECHNOLOGIES.
  (B)  "INNOVATIVE  ENVIRONMENTAL  TECHNOLOGIES" SHALL MEAN TECHNOLOGIES
THAT  ADVANCE  SUSTAINABLE  DEVELOPMENT  BY  REDUCING  RISK,   ENHANCING
COST-EFFECTIVENESS,  IMPROVING PROCESS EFFICIENCY, AND CREATING PRODUCTS
AND PROCESSES THAT ARE ENVIRONMENTALLY BENEFICIAL OR  BENIGN  AND  WHICH
HAVE SIGNIFICANT POTENTIAL FOR COMMERCIALIZATION. EMERGING ENVIRONMENTAL
TECHNOLOGIES  INCLUDE,  BUT  ARE  NOT  LIMITED  TO: AIR, WATER, AND SOIL
POLLUTION CONTROL; SOLID AND TOXIC WASTE MANAGEMENT;  SITE  REMEDIATION;
AND ENVIRONMENTAL MONITORING AND RECYCLING.
  (C)  "SMALL BUSINESSES" SHALL MEAN AN INDEPENDENTLY OWNED AND OPERATED
BUSINESS THAT MEETS ALL OF THE FOLLOWING CONDITIONS:  (I)  HEADQUARTERED
IN  THE  STATE,  AND PRINCIPAL BUSINESS OPERATIONS LOCATED IN THE STATE;
(II) EMPLOYS ONE HUNDRED OR LESS PERSONS, EIGHTY  PERCENT  OF  WHOM  ARE
EMPLOYED  WITHIN  THE  STATE ON A FULL-TIME BASIS; AND (III) INVOLVED IN
DEVELOPING INNOVATIVE ENERGY AND ENVIRONMENTAL TECHNOLOGIES.
  (D) "ELIGIBLE COSTS" SHALL MEAN COSTS ASSOCIATED WITH WORKING  CAPITAL
NEEDS,  THE ACQUISITION OR UPGRADING OF EQUIPMENT, OR LEASEHOLD IMPROVE-
MENTS NECESSARY FOR COMMERCIALIZATION OF THE PRODUCT, DEVICE, TECHNIQUE,
SYSTEM OR PROCESS; PROVIDED THAT NO OTHER SOURCE OF FUNDS  IS  AVAILABLE
UNDER  TERMS,  INTEREST  RATES, OR OTHER CONDITIONS THAT WOULD ALLOW THE
PROJECT TO PROCEED SUCCESSFULLY. ELIGIBLE COSTS SHALL EXCLUDE ANY  COSTS
INCURRED PRIOR TO THE EFFECTIVE DATE OF THIS SECTION.
  2.  THE  CORPORATION IS AUTHORIZED, WITHIN AVAILABLE APPROPRIATIONS IN
THE EMPIRE STATE  ECONOMIC  DEVELOPMENT  FUND  ESTABLISHED  PURSUANT  TO
SECTION  SIXTEEN-M  OF THIS ACT OR FROM ANY OTHER FUNDS APPROPRIATED FOR
THE PURPOSE SET OUT IN THIS SECTION, TO AWARD CAPITAL GRANTS  OF  UP  TO
ONE  HUNDRED  THOUSAND  DOLLARS  TO SMALL BUSINESSES, FOR THE PURPOSE OF
ENCOURAGING AND SUPPORTING INNOVATIVE ENERGY AND ENVIRONMENTAL TECHNOLO-
GY DEVELOPMENT AND COMMERCIALIZATION ACROSS THE STATE. SUCH GRANTS SHALL
BE AWARDED ON A COMPETITIVE BASIS TO SMALL BUSINESS APPLICANTS  RESPOND-
ING TO REQUESTS FOR PROPOSALS ISSUED BY THE CORPORATION.
  3.  GRANTS  AND  CONTRACTS  MADE  BY  THE CORPORATION PURSUANT TO THIS
SECTION SHALL BE SUBJECT TO THE FOLLOWING:
  (A) GRANTS SHALL NOT EXCEED ONE HUNDRED THOUSAND DOLLARS PER YEAR;
  (B) THE CORPORATION MAY NOT ENTER INTO MORE THAN ONE GRANT PER YEAR TO
A SMALL BUSINESS; AND
  (C) GRANTS PROVIDED BY THE CORPORATION MAY ONLY BE USED  FOR  ELIGIBLE
COSTS.
  4.  APPLICATIONS  FOR  GRANTS  AUTHORIZED  UNDER  THIS  SECTION  SHALL
DESCRIBE THE PRODUCT, DEVICE, TECHNIQUE, SYSTEM OR PROCESS WHICH  IS  TO
BE DEVELOPED, INCLUDING:
  (A) A MARKET ASSESSMENT;
  (B) AN EXPLANATION OF ITS TECHNICAL VALUE;
  (C)  MEASURABLE  OUTCOMES  RESULTING  FROM  ITS  MANUFACTURE AND SALE,
INCLUDING THE ESTIMATED NUMBER OF JOBS TO BE CREATED  AND  RETAINED  AND
THE SALARY LEVELS OF SUCH JOBS;
  (D)  AN  ESTIMATED  TIMELINE  FOR BRINGING IT TO MARKET, WITH PROPOSED
STARTING AND COMPLETION DATES AND BENCHMARKS; AND
  (E) A BUDGET FOR ITS DEVELOPMENT AND MARKETING THAT DESCRIBES HOW  THE
GRANT  WILL BE USED, WHY THE GRANT FROM THE CORPORATION IS ESSENTIAL AND
CANNOT BE OBTAINED FROM OTHER SOURCES, AND SOURCES AND AMOUNTS OF  OTHER
FUNDS TO BE USED IN ITS DEVELOPMENT, MARKETING AND DISTRIBUTION.
  5.  THE  CORPORATION  SHALL,  IN  CONSULTATION WITH THE NEW YORK STATE
ENERGY RESEARCH AND DEVELOPMENT AUTHORITY AND THE DEPARTMENT OF ENVIRON-

S. 1120                             3

MENTAL CONSERVATION, DEVELOP CRITERIA TO BE  USED  IN  EVALUATING  GRANT
APPLICATIONS. SUCH CRITERIA SHALL INCLUDE, BUT NOT BE LIMITED TO:
  (A)  ECONOMIC IMPACT AS MEASURED BY SUCH VARIABLES AS POTENTIAL REVEN-
UE, JOB CREATION, EFFECT ON THE LOCAL ECONOMY,  GLOBAL  COMPETITIVENESS,
AND, PURCHASES FROM IN-STATE SUPPLIERS;
  (B) ABILITY OF THE APPLICANT TO LEVERAGE OTHER FUNDS;
  (C) FINANCIAL COMMITMENT OF THE APPLICANT;
  (D) TECHNICAL FEASIBILITY;
  (E)  LIKELIHOOD  THAT  THE ECONOMIC BENEFITS WILL BE MANIFEST WITHIN A
SIX- TO TWELVE-MONTH PERIOD, BUT AT MOST WITHIN THREE YEARS; AND
  (F) LIKELIHOOD OF THE PRODUCT, DEVICE, TECHNIQUE, SYSTEM OR PROCESS TO
RESULT IN IMPROVEMENTS TO PUBLIC HEALTH, QUALITY OF LIFE,  THE  ENVIRON-
MENT, HUMAN OR BUSINESS PERFORMANCE OR ECONOMIC PRODUCTIVITY.
  6.  THE  CORPORATION SHALL, ON OR BEFORE SEPTEMBER FIRST, TWO THOUSAND
FOURTEEN AND ANNUALLY THEREAFTER, SUBMIT A REPORT TO THE  GOVERNOR,  THE
TEMPORARY  PRESIDENT  OF  THE SENATE AND THE SENATE MINORITY LEADER, THE
SPEAKER OF THE ASSEMBLY, AND THE MINORITY LEADER OF  THE  ASSEMBLY,  THE
CHAIRPERSONS  OF  THE SENATE FINANCE COMMITTEE AND THE ASSEMBLY WAYS AND
MEANS COMMITTEE, AND TO ANY OTHER MEMBER OF THE  LEGISLATURE  REQUESTING
SUCH  REPORTS  ON  THE EFFECTIVENESS AND ACCOMPLISHMENTS OF THE NEW YORK
STATE INNOVATIVE ENERGY AND  ENVIRONMENTAL  TECHNOLOGY  GRANTS  PROGRAM.
SUCH  REPORT SHALL INCLUDE FOR EACH GRANT AWARDED, THE NAME AND LOCATION
OF THE RECIPIENT, A  DESCRIPTION  OF  THE  PRODUCT,  DEVICE,  TECHNIQUE,
SYSTEM OR PROCESS BEING COMMERCIALIZED, THE AMOUNT AND USE OF THE GRANT,
THE  TOTAL  PROJECT  COST,  THE IMPACT OF THE PROJECT ON THE RECIPIENT'S
BUSINESS, THE NUMBER OF JOBS CREATED OR RETAINED, AND SUCH OTHER  INFOR-
MATION AS THE CORPORATION SHALL DEEM APPROPRIATE.
  7.  NOTHING  IN THIS SECTION SHALL REQUIRE THE CORPORATION TO DISCLOSE
ANY MATTERS INVOLVING CONFIDENTIAL INTELLECTUAL PROPERTY OR  WORK  PROD-
UCT,  WHETHER  PATENTABLE  OR NOT, INCLUDING ANY FORMULA, PLAN, PATTERN,
PROCESS, TOOL, MECHANISM, COMPOUND, PROCEDURE, PRODUCTION DATA OR COMPI-
LATION OF INFORMATION, WHICH IS NOT PATENTED, BUT WHICH IS KNOWN ONLY TO
CERTAIN INDIVIDUALS WHO ARE USING IT TO FABRICATE, PRODUCE  OR  COMPOUND
AN  ARTICLE  OF TRADE OR SERVICE HAVING COMMERCIAL VALUE AND WHICH GIVES
ITS USER AN OPPORTUNITY TO OBTAIN A BUSINESS ADVANTAGE OVER  COMPETITORS
WHO DO NOT KNOW IT OR USE IT.
  S 3. This act shall take effect immediately.

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

                                 1120--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced by Sens. MAZIARZ, MONTGOMERY -- read twice and ordered print-
  ed, and when printed to be committed to the Committee on Corporations,
  Authorities  and Commissions -- reported favorably from said committee
  and committed to the Committee on  Finance  --  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 New York state innovative energy and environ-
  mental technology program

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Legislative  intent.  The  legislature  hereby  finds and
declares that the success of innovative energy and  environmental  tech-
nology-oriented  businesses  with  growth  potential is essential to the
continued economic health and security of New York state. It is  further
found  that  the development of new products to assist mature industries
undergoing dramatic changes or facing increasing international  competi-
tion  with  reducing energy costs and complying with environmental regu-
lations, can serve to retain, and even increase, employment.    However,
commercialization  of  these  products  is  restrained as numerous small
businesses are limited by lack of early stage financing.
  Therefore, the legislature seeks to provide early stage funds,  via  a
grants program, to stimulate the creation of a substantial number of new
businesses and jobs in the energy and environmental sector.
  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-w to read as follows:
  S 16-W. NEW YORK STATE INNOVATIVE ENERGY AND ENVIRONMENTAL  TECHNOLOGY
PROGRAM. 1. DEFINITIONS. AS USED IN THIS SUBSECTION, THE FOLLOWING WORDS
AND TERMS SHALL HAVE THE FOLLOWING MEANINGS:

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

                                                           LBD02297-02-3

S. 1120--A                          2

  (A)  "INNOVATIVE  ENERGY  TECHNOLOGIES" SHALL MEAN ALL METHODS USED TO
PRODUCE, DISTRIBUTE, CONSERVE AND STORE ENERGY  BY  METHODS  WHICH  HAVE
SIGNIFICANT  POTENTIAL FOR COMMERCIALIZATION, WITH EMPHASIS ON RENEWABLE
ENERGY SOURCES INCLUDING, BUT NOT LIMITED TO, SOLAR, WIND,  FUEL  CELLS,
ADVANCED HYDROELECTRIC, AND BIOMASS POWER CONVERSION TECHNOLOGIES.
  (B)  "INNOVATIVE  ENVIRONMENTAL  TECHNOLOGIES" SHALL MEAN TECHNOLOGIES
THAT  ADVANCE  SUSTAINABLE  DEVELOPMENT  BY  REDUCING  RISK,   ENHANCING
COST-EFFECTIVENESS,  IMPROVING PROCESS EFFICIENCY, AND CREATING PRODUCTS
AND PROCESSES THAT ARE ENVIRONMENTALLY BENEFICIAL OR  BENIGN  AND  WHICH
HAVE SIGNIFICANT POTENTIAL FOR COMMERCIALIZATION. EMERGING ENVIRONMENTAL
TECHNOLOGIES  INCLUDE,  BUT  ARE  NOT  LIMITED  TO: AIR, WATER, AND SOIL
POLLUTION CONTROL; SOLID AND TOXIC WASTE MANAGEMENT;  SITE  REMEDIATION;
AND ENVIRONMENTAL MONITORING AND RECYCLING.
  (C)  "SMALL BUSINESSES" SHALL MEAN AN INDEPENDENTLY OWNED AND OPERATED
BUSINESS THAT MEETS ALL OF THE FOLLOWING CONDITIONS:  (I)  HEADQUARTERED
IN  THE  STATE,  AND PRINCIPAL BUSINESS OPERATIONS LOCATED IN THE STATE;
(II) EMPLOYS ONE HUNDRED OR LESS PERSONS, EIGHTY  PERCENT  OF  WHOM  ARE
EMPLOYED  WITHIN  THE  STATE ON A FULL-TIME BASIS; AND (III) INVOLVED IN
DEVELOPING INNOVATIVE ENERGY AND ENVIRONMENTAL TECHNOLOGIES.
  (D) "ELIGIBLE COSTS" SHALL MEAN COSTS ASSOCIATED WITH WORKING  CAPITAL
NEEDS,  THE ACQUISITION OR UPGRADING OF EQUIPMENT, OR LEASEHOLD IMPROVE-
MENTS NECESSARY FOR COMMERCIALIZATION OF THE PRODUCT, DEVICE, TECHNIQUE,
SYSTEM OR PROCESS; PROVIDED THAT NO OTHER SOURCE OF FUNDS  IS  AVAILABLE
UNDER  TERMS,  INTEREST  RATES, OR OTHER CONDITIONS THAT WOULD ALLOW THE
PROJECT TO PROCEED SUCCESSFULLY. ELIGIBLE COSTS SHALL EXCLUDE ANY  COSTS
INCURRED PRIOR TO THE EFFECTIVE DATE OF THIS SECTION.
  2.  THE  CORPORATION IS AUTHORIZED, WITHIN AVAILABLE APPROPRIATIONS IN
THE EMPIRE STATE  ECONOMIC  DEVELOPMENT  FUND  ESTABLISHED  PURSUANT  TO
SECTION  SIXTEEN-M  OF THIS ACT OR FROM ANY OTHER FUNDS APPROPRIATED FOR
THE PURPOSE SET OUT IN THIS SECTION, TO AWARD CAPITAL GRANTS  OF  UP  TO
ONE  HUNDRED  THOUSAND  DOLLARS  TO SMALL BUSINESSES, FOR THE PURPOSE OF
ENCOURAGING AND SUPPORTING INNOVATIVE ENERGY AND ENVIRONMENTAL TECHNOLO-
GY DEVELOPMENT AND COMMERCIALIZATION ACROSS THE STATE. SUCH GRANTS SHALL
BE AWARDED ON A COMPETITIVE BASIS TO SMALL BUSINESS APPLICANTS  RESPOND-
ING TO REQUESTS FOR PROPOSALS ISSUED BY THE CORPORATION.
  3.  GRANTS  AND  CONTRACTS  MADE  BY  THE CORPORATION PURSUANT TO THIS
SECTION SHALL BE SUBJECT TO THE FOLLOWING:
  (A) GRANTS SHALL NOT EXCEED ONE HUNDRED THOUSAND DOLLARS PER YEAR;
  (B) THE CORPORATION MAY NOT ENTER INTO MORE THAN ONE GRANT PER YEAR TO
A SMALL BUSINESS; AND
  (C) GRANTS PROVIDED BY THE CORPORATION MAY ONLY BE USED  FOR  ELIGIBLE
COSTS.
  4.  APPLICATIONS  FOR  GRANTS  AUTHORIZED  UNDER  THIS  SECTION  SHALL
DESCRIBE THE PRODUCT, DEVICE, TECHNIQUE, SYSTEM OR PROCESS WHICH  IS  TO
BE DEVELOPED, INCLUDING:
  (A) A MARKET ASSESSMENT;
  (B) AN EXPLANATION OF ITS TECHNICAL VALUE;
  (C)  MEASURABLE  OUTCOMES  RESULTING  FROM  ITS  MANUFACTURE AND SALE,
INCLUDING THE ESTIMATED NUMBER OF JOBS TO BE CREATED  AND  RETAINED  AND
THE SALARY LEVELS OF SUCH JOBS;
  (D)  AN  ESTIMATED  TIMELINE  FOR BRINGING IT TO MARKET, WITH PROPOSED
STARTING AND COMPLETION DATES AND BENCHMARKS; AND
  (E) A BUDGET FOR ITS DEVELOPMENT AND MARKETING THAT DESCRIBES HOW  THE
GRANT  WILL BE USED, WHY THE GRANT FROM THE CORPORATION IS ESSENTIAL AND
CANNOT BE OBTAINED FROM OTHER SOURCES, AND SOURCES AND AMOUNTS OF  OTHER
FUNDS TO BE USED IN ITS DEVELOPMENT, MARKETING AND DISTRIBUTION.

S. 1120--A                          3

  5.  THE  CORPORATION  SHALL,  IN  CONSULTATION WITH THE NEW YORK STATE
ENERGY RESEARCH AND DEVELOPMENT AUTHORITY AND THE DEPARTMENT OF ENVIRON-
MENTAL CONSERVATION, DEVELOP CRITERIA TO BE  USED  IN  EVALUATING  GRANT
APPLICATIONS. SUCH CRITERIA SHALL INCLUDE, BUT NOT BE LIMITED TO:
  (A)  ECONOMIC IMPACT AS MEASURED BY SUCH VARIABLES AS POTENTIAL REVEN-
UE, JOB CREATION, EFFECT ON THE LOCAL ECONOMY,  GLOBAL  COMPETITIVENESS,
AND, PURCHASES FROM IN-STATE SUPPLIERS;
  (B) ABILITY OF THE APPLICANT TO LEVERAGE OTHER FUNDS;
  (C) FINANCIAL COMMITMENT OF THE APPLICANT;
  (D) TECHNICAL FEASIBILITY;
  (E)  LIKELIHOOD  THAT  THE ECONOMIC BENEFITS WILL BE MANIFEST WITHIN A
SIX- TO TWELVE-MONTH PERIOD, BUT AT MOST WITHIN THREE YEARS; AND
  (F) LIKELIHOOD OF THE PRODUCT, DEVICE, TECHNIQUE, SYSTEM OR PROCESS TO
RESULT IN IMPROVEMENTS TO PUBLIC HEALTH, QUALITY OF LIFE,  THE  ENVIRON-
MENT, HUMAN OR BUSINESS PERFORMANCE OR ECONOMIC PRODUCTIVITY.
  6.  THE  CORPORATION SHALL, ON OR BEFORE SEPTEMBER FIRST, TWO THOUSAND
FOURTEEN AND ANNUALLY THEREAFTER, SUBMIT A REPORT TO THE  GOVERNOR,  THE
TEMPORARY  PRESIDENT  OF  THE SENATE AND THE SENATE MINORITY LEADER, THE
SPEAKER OF THE ASSEMBLY, AND THE MINORITY LEADER OF  THE  ASSEMBLY,  THE
CHAIRPERSONS  OF  THE SENATE FINANCE COMMITTEE AND THE ASSEMBLY WAYS AND
MEANS COMMITTEE, AND TO ANY OTHER MEMBER OF THE  LEGISLATURE  REQUESTING
SUCH  REPORTS  ON  THE EFFECTIVENESS AND ACCOMPLISHMENTS OF THE NEW YORK
STATE INNOVATIVE ENERGY AND  ENVIRONMENTAL  TECHNOLOGY  GRANTS  PROGRAM.
SUCH  REPORT SHALL INCLUDE FOR EACH GRANT AWARDED, THE NAME AND LOCATION
OF THE RECIPIENT, A  DESCRIPTION  OF  THE  PRODUCT,  DEVICE,  TECHNIQUE,
SYSTEM OR PROCESS BEING COMMERCIALIZED, THE AMOUNT AND USE OF THE GRANT,
THE  TOTAL  PROJECT  COST,  THE IMPACT OF THE PROJECT ON THE RECIPIENT'S
BUSINESS, THE NUMBER OF JOBS CREATED OR RETAINED, AND SUCH OTHER  INFOR-
MATION AS THE CORPORATION SHALL DEEM APPROPRIATE.
  7.  NOTHING  IN THIS SECTION SHALL REQUIRE THE CORPORATION TO DISCLOSE
ANY MATTERS INVOLVING CONFIDENTIAL INTELLECTUAL PROPERTY OR  WORK  PROD-
UCT,  WHETHER  PATENTABLE  OR NOT, INCLUDING ANY FORMULA, PLAN, PATTERN,
PROCESS, TOOL, MECHANISM, COMPOUND, PROCEDURE, PRODUCTION DATA OR COMPI-
LATION OF INFORMATION, WHICH IS NOT PATENTED, BUT WHICH IS KNOWN ONLY TO
CERTAIN INDIVIDUALS WHO ARE USING IT TO FABRICATE, PRODUCE  OR  COMPOUND
AN  ARTICLE  OF TRADE OR SERVICE HAVING COMMERCIAL VALUE AND WHICH GIVES
ITS USER AN OPPORTUNITY TO OBTAIN A BUSINESS ADVANTAGE OVER  COMPETITORS
WHO DO NOT KNOW IT OR USE IT.
  S 3. This act shall take effect immediately.

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

                                 1120--B

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced by Sens. MAZIARZ, MONTGOMERY -- read twice and ordered print-
  ed, and when printed to be committed to the Committee on Corporations,
  Authorities  and Commissions -- reported favorably from said committee
  and committed to the Committee on  Finance  --  committee  discharged,
  bill  amended,  ordered  reprinted  as amended and recommitted to said
  committee -- 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 New York state innovative energy and environ-
  mental technology program

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1.  Legislative  intent.  The  legislature  hereby  finds  and
declares  that  the success of innovative energy and environmental tech-
nology-oriented businesses with growth potential  is  essential  to  the
continued  economic health and security of New York state. It is further
found that the development of new products to assist  mature  industries
undergoing  dramatic changes or facing increasing international competi-
tion with reducing energy costs and complying with  environmental  regu-
lations,  can  serve to retain, and even increase, employment.  However,
commercialization of these products  is  restrained  as  numerous  small
businesses are limited by lack of early stage financing.
  Therefore,  the  legislature seeks to provide early stage funds, via a
grants program, to stimulate the creation of a substantial number of new
businesses and jobs in the  energy  and  environmental  sectors  of  New
York's economy.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02297-04-3

              

S. 1120--B                          2

  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-w to read as follows:
  S  16-W. NEW YORK STATE INNOVATIVE ENERGY AND ENVIRONMENTAL TECHNOLOGY
PROGRAM. 1. DEFINITIONS. AS USED IN THIS SUBSECTION, THE FOLLOWING WORDS
AND TERMS SHALL HAVE THE FOLLOWING MEANINGS:
  (A) "INNOVATIVE ENERGY TECHNOLOGIES" SHALL MEAN ALL  METHODS  USED  TO
PRODUCE,  DISTRIBUTE,  CONSERVE  AND  STORE ENERGY BY METHODS WHICH HAVE
SIGNIFICANT POTENTIAL FOR COMMERCIALIZATION, WITH EMPHASIS ON  RENEWABLE
ENERGY  SOURCES  INCLUDING, BUT NOT LIMITED TO, SOLAR, WIND, FUEL CELLS,
ADVANCED HYDROELECTRIC, AND BIOMASS POWER CONVERSION TECHNOLOGIES.
  (B) "INNOVATIVE ENVIRONMENTAL TECHNOLOGIES"  SHALL  MEAN  TECHNOLOGIES
THAT   ADVANCE  SUSTAINABLE  DEVELOPMENT  BY  REDUCING  RISK,  ENHANCING
COST-EFFECTIVENESS, IMPROVING PROCESS EFFICIENCY, AND CREATING  PRODUCTS
AND  PROCESSES  THAT  ARE ENVIRONMENTALLY BENEFICIAL OR BENIGN AND WHICH
HAVE SIGNIFICANT POTENTIAL FOR COMMERCIALIZATION. EMERGING ENVIRONMENTAL
TECHNOLOGIES INCLUDE, BUT ARE NOT  LIMITED  TO:  AIR,  WATER,  AND  SOIL
POLLUTION  CONTROL;  SOLID AND TOXIC WASTE MANAGEMENT; SITE REMEDIATION;
AND ENVIRONMENTAL MONITORING AND RECYCLING.
  (C) "SMALL BUSINESSES" SHALL MEAN AN INDEPENDENTLY OWNED AND  OPERATED
BUSINESS  THAT  MEETS ALL OF THE FOLLOWING CONDITIONS: (I) HEADQUARTERED
IN THE STATE, AND PRINCIPAL BUSINESS OPERATIONS LOCATED  IN  THE  STATE;
(II)  EMPLOYS  ONE  HUNDRED  OR LESS PERSONS, EIGHTY PERCENT OF WHOM ARE
EMPLOYED WITHIN THE STATE ON A FULL-TIME BASIS; AND  (III)  INVOLVED  IN
DEVELOPING INNOVATIVE ENERGY AND ENVIRONMENTAL TECHNOLOGIES.
  (D)  "ELIGIBLE COSTS" SHALL MEAN COSTS ASSOCIATED WITH WORKING CAPITAL
NEEDS, THE ACQUISITION OR UPGRADING OF EQUIPMENT, OR LEASEHOLD  IMPROVE-
MENTS NECESSARY FOR COMMERCIALIZATION OF THE PRODUCT, DEVICE, TECHNIQUE,
SYSTEM  OR  PROCESS; PROVIDED THAT NO OTHER SOURCE OF FUNDS IS AVAILABLE
UNDER TERMS, INTEREST RATES, OR OTHER CONDITIONS THAT  WOULD  ALLOW  THE
PROJECT  TO PROCEED SUCCESSFULLY. ELIGIBLE COSTS SHALL EXCLUDE ANY COSTS
INCURRED PRIOR TO THE EFFECTIVE DATE OF THIS SECTION.
  2. THE CORPORATION IS AUTHORIZED, WITHIN AVAILABLE  APPROPRIATIONS  IN
THE  EMPIRE  STATE  ECONOMIC  DEVELOPMENT  FUND  ESTABLISHED PURSUANT TO
SECTION SIXTEEN-M OF THIS ACT OR FROM ANY OTHER FUNDS  APPROPRIATED  FOR
THE  PURPOSE  SET  OUT IN THIS SECTION, TO AWARD CAPITAL GRANTS OF UP TO
ONE HUNDRED THOUSAND DOLLARS TO SMALL BUSINESSES,  FOR  THE  PURPOSE  OF
ENCOURAGING AND SUPPORTING INNOVATIVE ENERGY AND ENVIRONMENTAL TECHNOLO-
GY DEVELOPMENT AND COMMERCIALIZATION ACROSS THE STATE. SUCH GRANTS SHALL
BE  AWARDED ON A COMPETITIVE BASIS TO SMALL BUSINESS APPLICANTS RESPOND-
ING TO REQUESTS FOR PROPOSALS ISSUED BY THE CORPORATION.
  3. GRANTS AND CONTRACTS MADE  BY  THE  CORPORATION  PURSUANT  TO  THIS
SECTION SHALL BE SUBJECT TO THE FOLLOWING:
  (A) GRANTS SHALL NOT EXCEED ONE HUNDRED THOUSAND DOLLARS PER YEAR;
  (B) THE CORPORATION MAY NOT ENTER INTO MORE THAN ONE GRANT PER YEAR TO
A SMALL BUSINESS; AND
  (C)  GRANTS  PROVIDED BY THE CORPORATION MAY ONLY BE USED FOR ELIGIBLE
COSTS.
  4.  APPLICATIONS  FOR  GRANTS  AUTHORIZED  UNDER  THIS  SECTION  SHALL
DESCRIBE  THE  PRODUCT, DEVICE, TECHNIQUE, SYSTEM OR PROCESS WHICH IS TO
BE DEVELOPED, INCLUDING:
  (A) A MARKET ASSESSMENT;
  (B) AN EXPLANATION OF ITS TECHNICAL VALUE;
  (C) MEASURABLE OUTCOMES  RESULTING  FROM  ITS  MANUFACTURE  AND  SALE,
INCLUDING  THE  ESTIMATED  NUMBER OF JOBS TO BE CREATED AND RETAINED AND
THE SALARY LEVELS OF SUCH JOBS;

S. 1120--B                          3

  (D) AN ESTIMATED TIMELINE FOR BRINGING IT  TO  MARKET,  WITH  PROPOSED
STARTING AND COMPLETION DATES AND BENCHMARKS; AND
  (E)  A BUDGET FOR ITS DEVELOPMENT AND MARKETING THAT DESCRIBES HOW THE
GRANT WILL BE USED, WHY THE GRANT FROM THE CORPORATION IS ESSENTIAL  AND
CANNOT  BE OBTAINED FROM OTHER SOURCES, AND SOURCES AND AMOUNTS OF OTHER
FUNDS TO BE USED IN ITS DEVELOPMENT, MARKETING AND DISTRIBUTION.
  5. THE CORPORATION SHALL, IN CONSULTATION  WITH  THE  NEW  YORK  STATE
ENERGY RESEARCH AND DEVELOPMENT AUTHORITY AND THE DEPARTMENT OF ENVIRON-
MENTAL  CONSERVATION,  DEVELOP  CRITERIA  TO BE USED IN EVALUATING GRANT
APPLICATIONS. SUCH CRITERIA SHALL INCLUDE, BUT NOT BE LIMITED TO:
  (A) ECONOMIC IMPACT AS MEASURED BY SUCH VARIABLES AS POTENTIAL  REVEN-
UE,  JOB  CREATION, EFFECT ON THE LOCAL ECONOMY, GLOBAL COMPETITIVENESS,
AND, PURCHASES FROM IN-STATE SUPPLIERS;
  (B) ABILITY OF THE APPLICANT TO LEVERAGE OTHER FUNDS;
  (C) FINANCIAL COMMITMENT OF THE APPLICANT;
  (D) TECHNICAL FEASIBILITY;
  (E) LIKELIHOOD THAT THE ECONOMIC BENEFITS WILL BE  MANIFEST  WITHIN  A
SIX- TO TWELVE-MONTH PERIOD, BUT AT MOST WITHIN THREE YEARS; AND
  (F) LIKELIHOOD OF THE PRODUCT, DEVICE, TECHNIQUE, SYSTEM OR PROCESS TO
RESULT  IN  IMPROVEMENTS TO PUBLIC HEALTH, QUALITY OF LIFE, THE ENVIRON-
MENT, HUMAN OR BUSINESS PERFORMANCE OR ECONOMIC PRODUCTIVITY.
  6. THE CORPORATION SHALL, ON OR BEFORE SEPTEMBER FIRST,  TWO  THOUSAND
FOURTEEN  AND  ANNUALLY THEREAFTER, SUBMIT A REPORT TO THE GOVERNOR, THE
TEMPORARY PRESIDENT OF THE SENATE AND THE SENATE  MINORITY  LEADER,  THE
SPEAKER  OF  THE  ASSEMBLY, AND THE MINORITY LEADER OF THE ASSEMBLY, THE
CHAIRPERSONS OF THE SENATE FINANCE COMMITTEE AND THE ASSEMBLY  WAYS  AND
MEANS  COMMITTEE,  AND TO ANY OTHER MEMBER OF THE LEGISLATURE REQUESTING
SUCH REPORTS ON THE EFFECTIVENESS AND ACCOMPLISHMENTS OF  THE  NEW  YORK
STATE  INNOVATIVE  ENERGY  AND  ENVIRONMENTAL TECHNOLOGY GRANTS PROGRAM.
SUCH REPORT SHALL INCLUDE FOR EACH GRANT AWARDED, THE NAME AND  LOCATION
OF  THE  RECIPIENT,  A  DESCRIPTION  OF  THE PRODUCT, DEVICE, TECHNIQUE,
SYSTEM OR PROCESS BEING COMMERCIALIZED, THE AMOUNT AND USE OF THE GRANT,
THE TOTAL PROJECT COST, THE IMPACT OF THE  PROJECT  ON  THE  RECIPIENT'S
BUSINESS,  THE NUMBER OF JOBS CREATED OR RETAINED, AND SUCH OTHER INFOR-
MATION AS THE CORPORATION SHALL DEEM APPROPRIATE.
  7. NOTHING IN THIS SECTION SHALL REQUIRE THE CORPORATION  TO  DISCLOSE
ANY  MATTERS  INVOLVING CONFIDENTIAL INTELLECTUAL PROPERTY OR WORK PROD-
UCT, WHETHER PATENTABLE OR NOT, INCLUDING ANY  FORMULA,  PLAN,  PATTERN,
PROCESS, TOOL, MECHANISM, COMPOUND, PROCEDURE, PRODUCTION DATA OR COMPI-
LATION OF INFORMATION, WHICH IS NOT PATENTED, BUT WHICH IS KNOWN ONLY TO
CERTAIN  INDIVIDUALS  WHO ARE USING IT TO FABRICATE, PRODUCE OR COMPOUND
AN ARTICLE OF TRADE OR SERVICE HAVING COMMERCIAL VALUE AND  WHICH  GIVES
ITS  USER AN OPPORTUNITY TO OBTAIN A BUSINESS ADVANTAGE OVER COMPETITORS
WHO DO NOT KNOW IT OR USE IT.
  S 3. This act shall take effect immediately.