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

                                  3014

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            February 7, 2011
                               ___________

Introduced by Sen. ESPAILLAT -- 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-u to read as follows:
  S 16-U. 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.
                                                           LBD06306-01-1

              

S. 3014                             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. 3014                             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  (k) 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 section 4 of part FF of chapter
59  of  the laws of 2006, is amended and a new paragraph (l) is added to
read as follows:
  (k) Assistance for regional  partnership  proposals,  as  provided  in
subdivision 12 of section 3154 of the public authorities law[.];
  (L)  LOANS, LOAN GUARANTEES, INTEREST SUBSIDY GRANTS AND DIRECT GRANTS
TO SMALL BUSINESSES UNDER SECTION SIXTEEN-U 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.