BILL NUMBER:S3206

TITLE  OF BILL:  An act to amend the public authorities law, in relation
to emerging technology industrial classifications for clean  environment
and energy technologies

PURPOSE  OR  GENERAL IDEA OF BILL:  The intent of this legislation is to
add clean environmental and energy technologies to the list of  emerging
industrial classifications in New York State.

SUMMARY  OF  SPECIFIC PROVISIONS:   A new subparagraph seven is added to
section 3102-e of the Public Authorities Law to read as follows:

(7) clean environment and energy technologies that involve new and inno-
vative pollution reduction methods, renewable resource energy generation
or storage, and energy efficiency measures such as smart grid, automated
or computerized energy control  systems  designed  to  deliver  electric
generation  to  the  end  use customer in an integrated manner using the
latest advances in digital and informational technology to improve elec-
tric system efficiency.

JUSTIFICATION:  The intent of this legislation is to add clean  environ-
mental  and energy technologies to the list of emerging industrial clas-
sifications in New York State. This classification will allow  entrepre-
neurs  and  business  involved  in  cutting edge clean environmental and
energy technologies to be certified as a "Qualified Emerging  Technology
              

Company" which would make them eligible for additional capital tax cred-
its and investment opportunities.

Currently,  for  a company to be certified as by the NYS Commissioner of
Tax and Finance for tax breaks as emerging  technology  company  (QETC),
the  industry must: (i) be as defined under section 3102-e of the public
authorities law (PAL);
(ii) be located in New York State; and,
(iii) have total annual product sales of $10 million or less.
The current emerging technologies under section 3102-e(1) (b) of the PAL
those technologies related to: advanced materials and processing;  engi-
neering,  production,  and  defense; electronic and photonic devices and
components; information and communication technologies; biotechnologies;
and, remanufactuting.
In New York State, significant investment is already being made by busi-
nesses and utilities, as well as the New York State Energy and  Research
Development  Authority  (NYSERDA),  the. Empire State Development Corpo-
ration (ESDC), the Public Service  Commission  (PSC),  the  Division  of
Housing  and Community Renewal (DHCR) and the New York. State Foundation
for Science, Technology and Innovation

(NYSTAR). In addition to State funding, there has  also  been  increased
funding  available  from the federal sources. This growth is expected to
create new business opportunities and integrate clean environmental  and
energy technologies, practices and services across all sectors.

While  significant investment is being made in New York, the State faces
the threat of falling behind in the race to develop the  clean  environ-
mental  and  energy  technologies  to  other  states such as California,
Connecticut, Maine, Maryland,  Massachusetts,  New  Jersey  as  well  as
several other states being to actively pursue supporting these technolo-
gies.  If  New  York State fails to aggressively promote these technolo-
gies, it would mean a significant loss of revenue, but  also  a  signif-
icant  job  loss  from  a  sector  that is actively working to train and
develop a skilled workforce capable of supporting these industries.

PRIOR LEGISLATIVE HISTORY:  2011-12: S.3371 - Commerce, Eco  Dev,  Small
Business 2010: S.8356 - Died in Rules

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:  None.

EFFECTIVE DATE:  This act shall take effect immediately.