senate Bill S1739B

2013-2014 Legislative Session

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

download bill text pdf

Sponsored By

Archive: Last Bill Status - In Committee


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

do you support this bill?

Actions

view actions (6)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
May 08, 2014 print number 1739b
amend and recommit to corporations, authorities and commissions
Feb 04, 2014 print number 1739a
amend and recommit to corporations, authorities and commissions
Jan 08, 2014 referred to corporations, authorities and commissions
Jan 09, 2013 referred to corporations, authorities and commissions

Bill Amendments

Original
A
B (Active)
Original
A
B (Active)

Co-Sponsors

S1739 - Bill Details

See Assembly Version of this Bill:
A2587B
Current Committee:
Law Section:
New York State Urban Development Corporation Act
Laws Affected:
Add §16-x, amd §16-m, UDC Act
Versions Introduced in Previous Legislative Sessions:
2011-2012: S3014, A6712A
2009-2010: A10474, A3945

S1739 - Bill Texts

view 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.

view 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 full text
download pdf
                    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.

Co-Sponsors

S1739A - Bill Details

See Assembly Version of this Bill:
A2587B
Current Committee:
Law Section:
New York State Urban Development Corporation Act
Laws Affected:
Add §16-x, amd §16-m, UDC Act
Versions Introduced in Previous Legislative Sessions:
2011-2012: S3014, A6712A
2009-2010: A10474, A3945

S1739A - Bill Texts

view 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.

view sponsor memo
BILL NUMBER:S1739A

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 effi-
cient technology implementation more readily available to small busi-
nesses in economically distressed areas. This program would be struc-
tured according to the existing NYSERDA low interest loan program,
whereby small commercial businesses are eligible to have certified ener-
gy 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 busi-
ness 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 devel-
opment 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 full text
download pdf
                    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:

  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-w to read as follows:
  S 16-W. SMALL BUSINESS ENERGY LOAN PROGRAM. 1.  DEFINITIONS.  FOR  THE
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

  (A)  "AUTHORITY"  SHALL  MEAN  THE  NEW YORK STATE ENERGY RESEARCH AND
DEVELOPMENT AUTHORITY AS DEFINED IN SECTION 1851 OF THE PUBLIC  AUTHORI-
TIES LAW.
  (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;

S. 1739--A                          3

  (B)  CUSTOM  MEASURES  THAT  PAY  FOR  THEMSELVES IN TEN YEARS THROUGH
REDUCED ENERGY USE;
  (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-W 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.

Co-Sponsors

S1739B (ACTIVE) - Bill Details

See Assembly Version of this Bill:
A2587B
Current Committee:
Law Section:
New York State Urban Development Corporation Act
Laws Affected:
Add §16-x, amd §16-m, UDC Act
Versions Introduced in Previous Legislative Sessions:
2011-2012: S3014, A6712A
2009-2010: A10474, A3945

S1739B (ACTIVE) - Bill Texts

view 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.

view sponsor memo
BILL NUMBER:S1739B

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 riot 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 Lo better secure New York
based jobs.

PRIOR LEGISLATIVE HISTORY:

2005-2006: A.8352;
2007-2008: A.5494a, Passed Assembly & Died in Senate;
2009-2010: A.10474, Reported, Assembly Ways and Means;
2011-2012: A6712a, Reported, Assembly Ways and Means;
2013-2014: A2587-a, Reported, Assembly Calendar, recommitted to Small
Business

FISCAL IMPLICATIONS:

Subject to appropriations.


EFFECTIVE DATE:

Upon enactment of the bill into law.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 1739--B

                       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  --
  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:

  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-x to read as follows:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02720-05-4

S. 1739--B                          2

  S 16-X. 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.
  (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:

S. 1739--B                          3

  (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;
  (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-X 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 New York state  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 ther-
ewith.

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.