Bill Text: NY S00853 | 2019-2020 | General Assembly | Introduced
Bill Title: 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.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2020-01-08 - REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS [S00853 Detail]
Download: New_York-2019-S00853-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 853 2019-2020 Regular Sessions IN SENATE January 9, 2019 ___________ Introduced by Sen. BENJAMIN -- 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: 1 Section 1. The legislature hereby finds and declares that the state's 2 chronically high energy costs are often cited as a key factor for why 3 New York-based businesses and New York-made products are not competitive 4 in national and global markets. The legislature further finds that the 5 state's economic expansion is tied to the growth and development of 6 small businesses. By reducing a primary cost component in a rapidly 7 growing sector of the state's economy, those businesses are rendered 8 more competitive, and thus help to better secure New York-based jobs. In 9 addition, thriving businesses and communities will augment the tax base, 10 which in distressed communities is disproportionately lower than in 11 other areas of the state. 12 Therefore, the legislature seeks to provide funds to reduce high ener- 13 gy costs, via a zero or low interest loan, or loan interest rate 14 reduction program for energy efficiency projects to stimulate the growth 15 and development of small businesses and jobs in New York state. 16 § 2. Section 1 of chapter 174 of the laws of 1968, constituting the 17 New York state urban development corporation act, is amended by adding a 18 new section 16-bb to read as follows: 19 § 16-bb. Small business energy loan program. 1. Definitions. For the 20 purpose of this section: 21 (a) "Authority" shall mean the New York state energy research and 22 development authority as defined in section 1851 of the public authori- 23 ties law. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD06074-01-9S. 853 2 1 (b) "Economically distressed areas" shall mean areas as determined by 2 the corporation, meeting criteria indicative of economic distress, 3 including consideration of unemployment rate; rate of employment change; 4 numbers and percentages of low-income persons; per capita income and per 5 capita real property wealth; such other indicators of distress as the 6 corporation shall determine. Economically distressed areas may include 7 designations such as cities, municipalities, block numbering areas and 8 census tracts. 9 (c) "Loan fund" shall mean the small business energy loan fund estab- 10 lished pursuant to this section. 11 (d) "Small businesses" shall mean businesses which meet the following 12 criteria: (i) independently owned and operated, and not dominant in 13 their field, (ii) headquartered in the state, with principal business 14 operations located in the state, and (iii) employs one hundred or less 15 persons. 16 2. (a) The corporation, with the assistance of the authority, shall 17 establish a small business energy loan fund to provide zero or low 18 interest loans and loan interest rate reductions to small businesses in 19 economically distressed areas for energy efficiency projects and 20 advanced energy technologies. 21 (b) In order to be eligible to participate in this loan program, small 22 businesses in economically distressed areas must have an energy audit 23 provided through the authority's energy audit program that helps small 24 businesses make informed electrical energy decisions and implement ener- 25 gy efficiency strategies. Technologies identified in such audit shall 26 become eligible technologies for which monies for the loan fund may be 27 available. 28 3. (a) The corporation shall, within available appropriations, provide 29 financial assistance from the loan fund to eligible small businesses in 30 economically distressed areas. 31 (b) The corporation is authorized to provide zero or low interest 32 loans from the loan fund for eligible improvements. To be eligible for 33 such loans, a small business in an economically distressed area shall 34 identify an eligible improvement project and provide necessary documen- 35 tation. 36 (c) (i) The corporation is authorized to provide loan interest rate 37 reductions from the loan fund for eligible improvements. To be eligible 38 for an interest rate reduction, a small business in an economically 39 distressed area shall: (1) identify an eligible improvement project and 40 provide necessary documentation, and (2) receive a loan commitment from 41 a participating lender, including banks, credit unions, community devel- 42 opment financial institutions, and farm credit associations. 43 (ii) The corporation is authorized to buy down the participating lend- 44 er's interest rate by up to four hundred basis points or four percent 45 through the loan fund. Such interest rate reductions shall be available 46 for the lesser of ten years or the life of the loan. 47 (d) Loans provided by the corporation or issued by a participating 48 lender shall not exceed one hundred thousand dollars. 49 4. Energy efficiency improvements eligible for zero or low interest 50 loans or loan interest rate reductions through the loan fund shall 51 include, but not be limited to: 52 (a) Pre-qualified measures that are proven cost effective investments 53 which reduce energy use; 54 (b) Custom measures that pay for themselves in ten years through 55 reduced energy use;S. 853 3 1 (c) Process improvement measures that reduce manufacturing energy use 2 on a cost-per-unit basis; and 3 (d) Renewable technologies that use the sun, wind, water or ground to 4 generate heat or power. 5 5. Applications for assistance pursuant to this section shall be 6 reviewed and evaluated by the corporation in cooperation with the 7 authority pursuant to eligibility requirements and criteria set forth in 8 the rules and regulations promulgated by the corporation. 9 6. The corporation and the authority shall submit an annual written 10 report to the speaker of the assembly and the temporary president of the 11 senate identifying the number of businesses assisted through the loan 12 fund program, and the types of improvements implemented and energy cost 13 savings realized by the small businesses assisted by this program. 14 § 3. Paragraph (m) of subdivision 1 of section 16-m of section 1 of 15 chapter 174 of the laws of 1968, constituting the New York state urban 16 development corporation act, as added by chapter 467 of the laws of 17 2011, is amended and a new paragraph (o) is added to read as follows: 18 (m) Assistance to businesses that conduct basic, applied or transla- 19 tional research that leads to the development of products that improve 20 human health or agriculture and that require approval by the federal 21 food and drug administration, in order to create or expand facilities, 22 in accordance with good manufacturing practice regulations, that will 23 create or retain more than fifty jobs. For purposes of this paragraph, 24 good manufacturing practice regulations refers to those regulations 25 promulgated by the United States Food and Drug Administration under the 26 authority of the Federal Food, Drug and Cosmetic Act[.]; 27 (o) Loans, loan guarantees, interest subsidy grants and direct grants 28 to small businesses under section sixteen-bb of this act for energy 29 efficiency projects and advanced energy technologies. 30 § 4. This act shall take effect immediately, provided, however, that 31 the amendments to section 16-m of the New York state urban development 32 corporation act made by section three of this act shall not affect the 33 expiration of such section and shall expire and be deemed repealed ther- 34 ewith.
