S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    795
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                              January 4, 2017
                                ___________
 
 Introduced by Sen. ALCANTARA -- 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.
   §  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-aa to read as follows:
   § 16-AA. 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.
                                                            LBD00012-01-7
              

 S. 795                              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 THE STATE, WITH PRINCIPAL BUSINESS
 OPERATIONS LOCATED IN THE 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. 795                              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.
   §  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-AA OF THIS ACT FOR ENERGY
 EFFICIENCY PROJECTS AND ADVANCED ENERGY TECHNOLOGIES.
   § 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.