S T A T E   O F   N E W   Y O R K
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                                 5536--A

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                            February 28, 2013
                               ___________

Introduced  by  M.  of  A. GABRYSZAK, FINCH, MILLMAN, SCHIMMINGER, KOLB,
  BENEDETTO, TITUS, CAHILL, JAFFEE, COLTON, LUPARDO, WEISENBERG, ROBERTS
  --  Multi-Sponsored  by  --  M.  of  A.  ABBATE,   BARCLAY,   BOYLAND,
  BROOK-KRASNY,  CROUCH, GUNTHER, KATZ, P. LOPEZ, MAGEE, MAISEL, MARKEY,
  McDONOUGH, McKEVITT, PEOPLES-STOKES, RAMOS, SKARTADOS, SWEENEY, TITONE
  -- read once and referred  to  the  Committee  on  Small  Business  --
  reported  and referred to the Committee on Ways and Means -- 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 New York state innovative energy and environ-
  mental technology program

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Legislative  intent.  The  legislature  hereby  finds and
declares that the success of innovative energy and  environmental  tech-
nology-oriented  businesses  with  growth  potential is essential to the
continued economic health and security of New York state. It is  further
found  that  the development of new products to assist mature industries
undergoing dramatic changes or facing increasing international  competi-
tion  with  reducing energy costs and complying with environmental regu-
lations, can serve to retain, and even increase, employment.    However,
commercialization  of  these  products  is  restrained as numerous small
businesses are limited by lack of early stage financing.
  Therefore, the legislature seeks to provide early stage funds,  via  a
grants program, to stimulate the creation of a substantial number of new
businesses and jobs in the energy and environmental sector.
  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:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02297-03-3

              

A. 5536--A                          2

  S 16-W. NEW YORK STATE INNOVATIVE ENERGY AND ENVIRONMENTAL  TECHNOLOGY
PROGRAM. 1. DEFINITIONS. AS USED IN THIS SUBSECTION, THE FOLLOWING WORDS
AND TERMS SHALL HAVE THE FOLLOWING MEANINGS:
  (A)  "INNOVATIVE  ENERGY  TECHNOLOGIES" SHALL MEAN ALL METHODS USED TO
PRODUCE, DISTRIBUTE, CONSERVE AND STORE ENERGY  BY  METHODS  WHICH  HAVE
SIGNIFICANT  POTENTIAL FOR COMMERCIALIZATION, WITH EMPHASIS ON RENEWABLE
ENERGY SOURCES INCLUDING, BUT NOT LIMITED TO, SOLAR, WIND,  FUEL  CELLS,
ADVANCED HYDROELECTRIC, AND BIOMASS POWER CONVERSION TECHNOLOGIES.
  (B)  "INNOVATIVE  ENVIRONMENTAL  TECHNOLOGIES" SHALL MEAN TECHNOLOGIES
THAT  ADVANCE  SUSTAINABLE  DEVELOPMENT  BY  REDUCING  RISK,   ENHANCING
COST-EFFECTIVENESS,  IMPROVING PROCESS EFFICIENCY, AND CREATING PRODUCTS
AND PROCESSES THAT ARE ENVIRONMENTALLY BENEFICIAL OR  BENIGN  AND  WHICH
HAVE SIGNIFICANT POTENTIAL FOR COMMERCIALIZATION. EMERGING ENVIRONMENTAL
TECHNOLOGIES  INCLUDE,  BUT  ARE  NOT  LIMITED  TO: AIR, WATER, AND SOIL
POLLUTION CONTROL; SOLID AND TOXIC WASTE MANAGEMENT;  SITE  REMEDIATION;
AND ENVIRONMENTAL MONITORING AND RECYCLING.
  (C)  "SMALL BUSINESSES" SHALL MEAN AN INDEPENDENTLY OWNED AND OPERATED
BUSINESS THAT MEETS ALL OF THE FOLLOWING CONDITIONS:  (I)  HEADQUARTERED
IN  THE  STATE,  AND PRINCIPAL BUSINESS OPERATIONS LOCATED IN THE STATE;
(II) EMPLOYS ONE HUNDRED OR LESS PERSONS, EIGHTY  PERCENT  OF  WHOM  ARE
EMPLOYED  WITHIN  THE  STATE ON A FULL-TIME BASIS; AND (III) INVOLVED IN
DEVELOPING INNOVATIVE ENERGY AND ENVIRONMENTAL TECHNOLOGIES.
  (D) "ELIGIBLE COSTS" SHALL MEAN COSTS ASSOCIATED WITH WORKING  CAPITAL
NEEDS,  THE ACQUISITION OR UPGRADING OF EQUIPMENT, OR LEASEHOLD IMPROVE-
MENTS NECESSARY FOR COMMERCIALIZATION OF THE PRODUCT, DEVICE, TECHNIQUE,
SYSTEM OR PROCESS; PROVIDED THAT NO OTHER SOURCE OF FUNDS  IS  AVAILABLE
UNDER  TERMS,  INTEREST  RATES, OR OTHER CONDITIONS THAT WOULD ALLOW THE
PROJECT TO PROCEED SUCCESSFULLY. ELIGIBLE COSTS SHALL EXCLUDE ANY  COSTS
INCURRED PRIOR TO THE EFFECTIVE DATE OF THIS SECTION.
  2.  THE  CORPORATION IS AUTHORIZED, WITHIN AVAILABLE APPROPRIATIONS IN
THE EMPIRE STATE  ECONOMIC  DEVELOPMENT  FUND  ESTABLISHED  PURSUANT  TO
SECTION  SIXTEEN-M  OF THIS ACT OR FROM ANY OTHER FUNDS APPROPRIATED FOR
THE PURPOSE SET OUT IN THIS SECTION, TO AWARD CAPITAL GRANTS  OF  UP  TO
ONE  HUNDRED  THOUSAND  DOLLARS  TO SMALL BUSINESSES, FOR THE PURPOSE OF
ENCOURAGING AND SUPPORTING INNOVATIVE ENERGY AND ENVIRONMENTAL TECHNOLO-
GY DEVELOPMENT AND COMMERCIALIZATION ACROSS THE STATE. SUCH GRANTS SHALL
BE AWARDED ON A COMPETITIVE BASIS TO SMALL BUSINESS APPLICANTS  RESPOND-
ING TO REQUESTS FOR PROPOSALS ISSUED BY THE CORPORATION.
  3.  GRANTS  AND  CONTRACTS  MADE  BY  THE CORPORATION PURSUANT TO THIS
SECTION SHALL BE SUBJECT TO THE FOLLOWING:
  (A) GRANTS SHALL NOT EXCEED ONE HUNDRED THOUSAND DOLLARS PER YEAR;
  (B) THE CORPORATION MAY NOT ENTER INTO MORE THAN ONE GRANT PER YEAR TO
A SMALL BUSINESS; AND
  (C) GRANTS PROVIDED BY THE CORPORATION MAY ONLY BE USED  FOR  ELIGIBLE
COSTS.
  4.  APPLICATIONS  FOR  GRANTS  AUTHORIZED  UNDER  THIS  SECTION  SHALL
DESCRIBE THE PRODUCT, DEVICE, TECHNIQUE, SYSTEM OR PROCESS WHICH  IS  TO
BE DEVELOPED, INCLUDING:
  (A) A MARKET ASSESSMENT;
  (B) AN EXPLANATION OF ITS TECHNICAL VALUE;
  (C)  MEASURABLE  OUTCOMES  RESULTING  FROM  ITS  MANUFACTURE AND SALE,
INCLUDING THE ESTIMATED NUMBER OF JOBS TO BE CREATED  AND  RETAINED  AND
THE SALARY LEVELS OF SUCH JOBS;
  (D)  AN  ESTIMATED  TIMELINE  FOR BRINGING IT TO MARKET, WITH PROPOSED
STARTING AND COMPLETION DATES AND BENCHMARKS; AND

A. 5536--A                          3

  (E) A BUDGET FOR ITS DEVELOPMENT AND MARKETING THAT DESCRIBES HOW  THE
GRANT  WILL BE USED, WHY THE GRANT FROM THE CORPORATION IS ESSENTIAL AND
CANNOT BE OBTAINED FROM OTHER SOURCES, AND SOURCES AND AMOUNTS OF  OTHER
FUNDS TO BE USED IN ITS DEVELOPMENT, MARKETING AND DISTRIBUTION.
  5.  THE  CORPORATION  SHALL,  IN  CONSULTATION WITH THE NEW YORK STATE
ENERGY RESEARCH AND DEVELOPMENT AUTHORITY AND THE DEPARTMENT OF ENVIRON-
MENTAL CONSERVATION, DEVELOP CRITERIA TO BE  USED  IN  EVALUATING  GRANT
APPLICATIONS. SUCH CRITERIA SHALL INCLUDE, BUT NOT BE LIMITED TO:
  (A)  ECONOMIC IMPACT AS MEASURED BY SUCH VARIABLES AS POTENTIAL REVEN-
UE, JOB CREATION, EFFECT ON THE LOCAL ECONOMY,  GLOBAL  COMPETITIVENESS,
AND, PURCHASES FROM IN-STATE SUPPLIERS;
  (B) ABILITY OF THE APPLICANT TO LEVERAGE OTHER FUNDS;
  (C) FINANCIAL COMMITMENT OF THE APPLICANT;
  (D) TECHNICAL FEASIBILITY;
  (E)  LIKELIHOOD  THAT  THE ECONOMIC BENEFITS WILL BE MANIFEST WITHIN A
SIX- TO TWELVE-MONTH PERIOD, BUT AT MOST WITHIN THREE YEARS; AND
  (F) LIKELIHOOD OF THE PRODUCT, DEVICE, TECHNIQUE, SYSTEM OR PROCESS TO
RESULT IN IMPROVEMENTS TO PUBLIC HEALTH, QUALITY OF LIFE,  THE  ENVIRON-
MENT, HUMAN OR BUSINESS PERFORMANCE OR ECONOMIC PRODUCTIVITY.
  6.  THE  CORPORATION SHALL, ON OR BEFORE SEPTEMBER FIRST, TWO THOUSAND
FOURTEEN AND ANNUALLY THEREAFTER, SUBMIT A REPORT TO THE  GOVERNOR,  THE
TEMPORARY  PRESIDENT  OF  THE SENATE AND THE SENATE MINORITY LEADER, THE
SPEAKER OF THE ASSEMBLY, AND THE MINORITY LEADER OF  THE  ASSEMBLY,  THE
CHAIRPERSONS  OF  THE SENATE FINANCE COMMITTEE AND THE ASSEMBLY WAYS AND
MEANS COMMITTEE, AND TO ANY OTHER MEMBER OF THE  LEGISLATURE  REQUESTING
SUCH  REPORTS  ON  THE EFFECTIVENESS AND ACCOMPLISHMENTS OF THE NEW YORK
STATE INNOVATIVE ENERGY AND  ENVIRONMENTAL  TECHNOLOGY  GRANTS  PROGRAM.
SUCH  REPORT SHALL INCLUDE FOR EACH GRANT AWARDED, THE NAME AND LOCATION
OF THE RECIPIENT, A  DESCRIPTION  OF  THE  PRODUCT,  DEVICE,  TECHNIQUE,
SYSTEM OR PROCESS BEING COMMERCIALIZED, THE AMOUNT AND USE OF THE GRANT,
THE  TOTAL  PROJECT  COST,  THE IMPACT OF THE PROJECT ON THE RECIPIENT'S
BUSINESS, THE NUMBER OF JOBS CREATED OR RETAINED, AND SUCH OTHER  INFOR-
MATION AS THE CORPORATION SHALL DEEM APPROPRIATE.
  7.  NOTHING  IN THIS SECTION SHALL REQUIRE THE CORPORATION TO DISCLOSE
ANY MATTERS INVOLVING CONFIDENTIAL INTELLECTUAL PROPERTY OR  WORK  PROD-
UCT,  WHETHER  PATENTABLE  OR NOT, INCLUDING ANY FORMULA, PLAN, PATTERN,
PROCESS, TOOL, MECHANISM, COMPOUND, PROCEDURE, PRODUCTION DATA OR COMPI-
LATION OF INFORMATION, WHICH IS NOT PATENTED, BUT WHICH IS KNOWN ONLY TO
CERTAIN INDIVIDUALS WHO ARE USING IT TO FABRICATE, PRODUCE  OR  COMPOUND
AN  ARTICLE  OF TRADE OR SERVICE HAVING COMMERCIAL VALUE AND WHICH GIVES
ITS USER AN OPPORTUNITY TO OBTAIN A BUSINESS ADVANTAGE OVER  COMPETITORS
WHO DO NOT KNOW IT OR USE IT.
  S 3. This act shall take effect immediately.