S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8802
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             November 25, 2019
                                ___________
 
 Introduced by M. of A. THIELE -- read once and referred to the Committee
   on Small Business
 
 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-bb to read as follows:
   §  16-BB.  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,
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD06074-01-9

 A. 8802                             2
 
 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;
   (C) PROCESS IMPROVEMENT MEASURES THAT REDUCE MANUFACTURING ENERGY  USE
 ON A COST-PER-UNIT BASIS; AND

 A. 8802                             3
 
   (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-BB  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.