NY State Senate Bill 2025-S734

Current Bill Status - In Senate Committee Energy And Telecommunications Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2025	referred to energy and telecommunications

2025-S734 (ACTIVE) - Details

Current Committee:: Senate Energy And Telecommunications
Law Section:: Public Authorities Law
Laws Affected:: Add §1018, Pub Auth L; add §99-ss, St Fin L

2025-S734 (ACTIVE) - Summary

Establishes an energy project revolving loan program and energy project revolving loan fund to encourage the development of renewable energy generating projects by awarding financial assistance for certain zero-emission energy generation projects.

2025-S734 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S734

SPONSOR: MAY
 
TITLE OF BILL:

An act to amend the public authorities law and the state finance law, in
relation to establishing an energy project revolving loan program and
energy project revolving loan fund

 
PURPOSE:

To create a revolving loan program for zero-emission energy projects

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 adds a new section 1018 to the public authorities low to
establish the energy project revolving loan program

Section 2 adds a new section 99-ss to establish the energy project
revolving loan fund

Section 3 establishes the effective date of the bill

 
JUSTIFICATION:

The pace of New York State's energy transition to fight climate change
and fulfill its Climate and Community Protection Act goals has been much
discussed. One key factor decreasing the pace at which new zero-emission
energy can be brought onto the grid is the cost of financing.

The cost of financing, or interest rates, is often referred to as the
"fuel" of renewable energy; since solar and wind don't have traditional
ongoing fuel costs, the price of financing largely determines the cost
of energy output. One natural resources firm estimated that the cost of
a 2% increase in interest rate increases the cost of a renewable energy
project by about 20%.

By driving down the cost of borrowing by creating a revolving loan fund
for energy construction, New York state can create more viable energy
projects while reducing the costs to consumers of energy, a win-win.
This strategy would work well in conjunction with the Build Public
Renewables Act, enabling the pipeline of energy projects identified by
the New York Power Authority to be created faster.

Revolving funds work by issuing loans at cheaper rates than typical
market rate loans for energy construction financing. Once the project is
completed, project owners are then able to obtain permanent financing at
a cheaper rate. The owners then pay the original loan back to the
revolving loan fund, ready to be used again. We believe this is a
prudent use of public dollars to create a virtuous cycle of investment
well into the future.

 
LEGISLATIVE HISTORY:

New bill

 
FISCAL IMPLICATIONS:

Subject to appropriation
 
EFFECTIVE DATE:
Immediately
1 https://heatmap.news/economy/federal-reserve-interest-rates-energy

2025-S734 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    734
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 8, 2025
                                ___________
 
 Introduced  by  Sen.  MAY  --  read  twice and ordered printed, and when
   printed to be committed to the Committee on  Energy  and  Telecommuni-
   cations
 
 AN ACT to amend the public authorities law and the state finance law, in
   relation  to establishing an energy project revolving loan program and
   energy project revolving loan fund
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The  public  authorities  law  is amended by adding a new
 section 1018 to read as follows:
   § 1018. ENERGY PROJECT REVOLVING LOAN PROGRAM. 1. FOR THE PURPOSES  OF
 THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   (A)  "PROGRAM"  MEANS THE ENERGY PROJECT REVOLVING LOAN PROGRAM ESTAB-
 LISHED PURSUANT TO THIS SECTION.
   (B) "ELIGIBLE ENERGY PROJECT" MEANS A ZERO-EMISSION ENERGY  GENERATION
 PROJECT.
   (C)  "ENERGY  PRODUCING  ENTITY" MEANS A PUBLIC ENTITY, NOT-FOR-PROFIT
 ENTITY, OR UTILITY, PROPOSING A ZERO-EMISSION ENERGY GENERATION PROJECT.
 "ENERGY PRODUCING ENTITY" SHALL INCLUDE, BUT  NOT  BE  LIMITED  TO,  THE
 POWER AUTHORITY OF THE STATE OF NEW YORK.
   (D)  "PROJECT  LABOR AGREEMENT" MEANS A PRE-HIRE COLLECTIVE BARGAINING
 AGREEMENT BETWEEN THE AUTHORITY, OR A  THIRD  PARTY  ON  BEHALF  OF  THE
 AUTHORITY,  AND A BONA FIDE BUILDING AND CONSTRUCTION TRADE LABOR ORGAN-
 IZATION ESTABLISHING THE LABOR ORGANIZATION AS THE COLLECTIVE BARGAINING
 REPRESENTATIVE FOR ALL PERSONS WHO WILL PERFORM WORK ON  A  PUBLIC  WORK
 PROJECT, AND WHICH PROVIDES THAT ONLY CONTRACTORS AND SUBCONTRACTORS WHO
 SIGN  A PRE-NEGOTIATED AGREEMENT WITH THE LABOR ORGANIZATION CAN PERFORM
 PROJECT WORK.
   2. THE AUTHORITY, IN COLLABORATION WITH THE GREEN BANK, A DIVISION  OF
 THE  NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY, IS HEREBY
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD03086-01-5
 S. 734                              2
 
 AUTHORIZED AND DIRECTED TO ESTABLISH AN ENERGY  PROJECT  REVOLVING  LOAN
 PROGRAM  TO PROVIDE ZERO-PERCENT INTEREST OR LOW-PERCENT INTEREST LOANS,
 IN ACCORDANCE WITH SUBDIVISION FOUR OF THIS SECTION, TO ENERGY PRODUCING
 ENTITIES  TO  FINANCE  ELIGIBLE  ENERGY  PROJECTS.  NOTWITHSTANDING  THE
 PROVISIONS OF ANY LAW TO THE CONTRARY, STATE FINANCIAL ASSISTANCE IN THE
 FORM OF A LOAN MAY BE PROVIDED FOR COSTS OF ELIGIBLE PROJECTS FOR  CAPI-
 TAL COSTS RELATED TO SUCH PROJECTS.
   3.  THE AUTHORITY SHALL ISSUE A COMPETITIVE REQUEST FOR PROPOSALS FROM
 ENERGY PRODUCING ENTITIES TO RECEIVE LOANS UNDER THE PROGRAM FOR  ELIGI-
 BLE  ENERGY PROJECTS. THE AUTHORITY SHALL MAKE A DETERMINATION AS TO THE
 ENERGY PRODUCING ENTITIES TO BE AWARDED STATE FINANCIAL ASSISTANCE UNDER
 THIS SECTION, AND THE AMOUNT OF SUCH  FINANCIAL  ASSISTANCE.  IN  MAKING
 SUCH  DETERMINATIONS,  THE AUTHORITY SHALL CONDUCT A COST-BENEFIT ANALY-
 SIS, COMPARING THE POTENTIAL OCCURRENCE  OF  SUCH  PROJECT  AGAINST  THE
 BASELINE  OF  SUCH PROJECT NOT OCCURRING, TO DETERMINE THE OVERALL BENE-
 FITS OF SUCH PROPOSED ENERGY PROJECT TO THE STATE AND TO RATEPAYERS.  AN
 ELIGIBLE  ENERGY  PROJECT  SHALL BE PROVEN TO BE BENEFICIAL TO THE STATE
 AND TO RATEPAYERS IN ORDER FOR FINANCIAL ASSISTANCE TO  BE  AWARDED  FOR
 SUCH  PROJECT.  THE  AUTHORITY  SHALL  ALSO  CONSIDER THE PROBABILITY OF
 COMPLETION OF SUCH ELIGIBLE  ENERGY  PROJECT  IN  MAKING  SUCH  DETERMI-
 NATIONS, IN ORDER TO ENSURE A HIGH PROBABILITY OF COMPLETION OF ELIGIBLE
 ENERGY PROJECTS FOR WHICH FINANCIAL ASSISTANCE IS AWARDED.
   4.  FINANCIAL  ASSISTANCE  AWARDED  UNDER  SUBDIVISION  THREE  OF THIS
 SECTION SHALL BE PROVIDED FROM THE ENERGY PROJECT  REVOLVING  LOAN  FUND
 ESTABLISHED  UNDER SECTION NINETY-NINE-SS OF THE STATE FINANCE LAW. SUCH
 FINANCIAL ASSISTANCE SHALL BE AWARDED IN THE FORM  OF  A  LOAN,  WITH  A
 ZERO-INTEREST  OR  LOW-INTEREST RATE, TO BE DETERMINED BY THE AGENCY. IN
 DETERMINING SUCH INTEREST RATES AND LOAN STRUCTURES, THE AUTHORITY SHALL
 HAVE THE GOAL OF COVERING ALL COSTS RELATED  TO  THE  OPERATION  OF  THE
 PROGRAM, WITHOUT SEEKING TO MAXIMIZE ADDITIONAL PROFITS.
   5.  AN ENERGY PRODUCING ENTITY AWARDED A LOAN UNDER THIS SECTION SHALL
 RETURN THE FULL AMOUNT OF SUCH LOAN AND ANY INTEREST  DUE  THEREUPON  TO
 THE  PROGRAM  UPON  COMPLETION  OF THE ELIGIBLE ENERGY PROJECT FOR WHICH
 SUCH LOAN WAS AWARDED. AN ENERGY PRODUCING ENTITY SHALL OBTAIN PERMANENT
 FINANCING FOR AN ELIGIBLE ENERGY PROJECT FROM A SOURCE  OTHER  THAN  THE
 PROGRAM  FOR ANY REMAINING DEBT NO LATER THAN FIVE YEARS AFTER INITIALLY
 RECEIVING A LOAN UNDER  THIS  SECTION.  FUNDS  RECEIVED  BY  THE  ENERGY
 PRODUCING  ENTITY  FROM  THE  PROGRAM  SHALL  BE  RETURNED TO THE ENERGY
 PROJECT REVOLVING LOAN FUND ESTABLISHED UNDER SECTION NINETY-NINE-SS  OF
 THE STATE FINANCE LAW.
   6.  ALL  ELIGIBLE  ENERGY  PROJECTS  SUBJECT  TO THIS SECTION SHALL BE
 DEEMED PUBLIC WORK AND SUBJECT TO AND PERFORMED IN ACCORDANCE WITH ARTI-
 CLES EIGHT AND NINE OF THE LABOR LAW. EACH CONTRACT  FOR  SUCH  ELIGIBLE
 ENERGY  PROJECT SHALL CONTAIN A PROVISION THAT SUCH PROJECTS MAY ONLY BE
 UNDERTAKEN PURSUANT TO A PROJECT LABOR AGREEMENT.  ALL  CONTRACTORS  AND
 SUBCONTRACTORS  ASSOCIATED  WITH  SUCH WORK SHALL BE REQUIRED TO UTILIZE
 APPRENTICESHIP AGREEMENTS AS DEFINED  BY  ARTICLE  TWENTY-THREE  OF  THE
 LABOR LAW.
   § 2. The state finance law is amended by adding a new section 99-ss to
 read as follows:
   § 99-SS. ENERGY PROJECT REVOLVING LOAN FUND. 1. THERE IS HEREBY ESTAB-
 LISHED IN THE JOINT CUSTODY OF THE STATE COMPTROLLER AND THE COMMISSION-
 ER  OF  TAXATION  AND  FINANCE A SPECIAL FUND TO BE KNOWN AS THE "ENERGY
 PROJECT REVOLVING LOAN FUND".
   2. THE ENERGY PROJECT REVOLVING LOAN FUND SHALL CONSIST OF ALL  MONIES
 APPROPRIATED,  CREDITED, OR TRANSFERRED THERETO FROM THE GENERAL FUND OR
 S. 734                              3
 
 ANY OTHER SOURCE PURSUANT TO  LAW,  INCLUDING  THE  REPAYMENT  OF  LOANS
 PROVIDED  UNDER  SECTION ONE THOUSAND EIGHTEEN OF THE PUBLIC AUTHORITIES
 LAW.
   3.  MONEYS  OF  THE ACCOUNT, WHEN ALLOCATED, SHALL BE AVAILABLE TO THE
 CHIEF EXECUTIVE OFFICER OF THE POWER AUTHORITY OF THE STATE OF NEW  YORK
 TO  MAKE  LOANS  PURSUANT TO SECTION ONE THOUSAND EIGHTEEN OF THE PUBLIC
 AUTHORITIES LAW.
   § 3. This act shall take effect on the ninetieth day  after  it  shall
 have become a law. Effective immediately, the addition, amendment and/or
 repeal  of  any  rule  or regulation necessary for the implementation of
 this act on its effective date are authorized to be made  and  completed
 on or before such effective date.

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Senate Bill S734

Sponsored By

Current Bill Status - In Senate Committee Energy And Telecommunications Committee

2025-S734 (ACTIVE) - Details

2025-S734 (ACTIVE) - Summary

2025-S734 (ACTIVE) - Sponsor Memo

2025-S734 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S734

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Sponsored By

Rachel May

Current Bill Status - In Senate Committee Energy And Telecommunications Committee

2025-S734 (ACTIVE) - Details

2025-S734 (ACTIVE) - Summary

2025-S734 (ACTIVE) - Sponsor Memo

2025-S734 (ACTIVE) - Bill Text download pdf

Comments