S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1909
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             January 17, 2019
                                ___________
 
 Introduced  by  Sen.  FUNKE  -- 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 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  sectors  of  New
 York's economy.
   §  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. NEW YORK STATE INNOVATIVE ENERGY AND ENVIRONMENTAL TECHNOLOGY
 PROGRAM. 1. DEFINITIONS. AS USED IN THIS SECTION,  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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD06351-02-9

 S. 1909                             2
 
 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 16-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 ENCOUR-
 AGING AND SUPPORTING  INNOVATIVE  ENERGY  AND  ENVIRONMENTAL  TECHNOLOGY
 DEVELOPMENT AND COMMERCIALIZATION ACROSS THE STATE. SUCH GRANTS SHALL BE
 AWARDED  ON  A COMPETITIVE BASIS TO SMALL BUSINESS APPLICANTS RESPONDING
 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 FIFTY 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
   (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-

 S. 1909                             3
 
 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
 TWENTY 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.
   § 3. This act shall take effect immediately.