S T A T E   O F   N E W   Y O R K
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                                   6335
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               April 5, 2023
                                ___________
 
 Introduced  by  M. of A. STIRPE, 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.
                                                            LBD03804-01-3
              

 A. 6335                             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
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   (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. Subdivision 1 of section 16-m of section 1 of chapter 174 of  the
 laws  of  1968, constituting the New York state urban development corpo-
 ration act, is amended by adding a new paragraph (p) to read as follows:
   (P) 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.