Provides small businesses with grants of up to $100,000 to commercialize energy and environmental technology innovations and ideas in-state to stimulate economic development.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A7307
SPONSOR: Solages TITLE OF BILL:
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
PURPOSE OF BILL::
The purpose of this bill is to provide for early stage financing of
small environmental technology businesses.
SUMMARY::
Section 1. Legislative intent.
Section 2. Amends section 1 of chapter 174 of the laws of 1968, consti-
tuting the New York state urban development corporation act, by adding a
new section 16-bb.
Section 3. Sets the effective date.
JUSTIFICATION::
The success of innovative energy and environmental technology-oriented
businesses with growth potential is essential to the continued economic
health and security of New York State. The development of new products
to assist mature industries that are undergoing dramatic changes or
facing increasing international competition with reducing energy costs
and complying with environmental regulations can serve to retain, and
even increase employment. However, commercialization of these products
is constrained as numerous small businesses are limited by lack of early
stage financing. This legislation seeks to provide early stage funding
to stimulate the creation of a substantial number of new businesses and
jobs in the energy and environmental sector.
RACIAL JUSTICE IMPACT:
TBD.
GENDER JUSTICE IMPACT:
TBD.
LEGISLATIVE HISTORY::
2021-22: A9309; reported referred to ways and means.
2020: A4874 (Pichardo) - Enacting clause stricken
2019: A2310 (Pichardo) - Referred to small business
2017: A6110 (Pichardo) - Vetoed
2015: A5932-A (Pichardo) - Passed Assembly
2014: A.8900-A (Pichardo) - Passed Assembly
2013: A.5536-A (Gabryszak)- Passed Assembly
2011-2012: A.5149-B (Gabryszak) - Passed Assembly
2009-2010: A.2261 (Stirpe) - Passed Assembly
2007-2008: A.8437-A (Stirpe) - Passed Assembly
2005-2006: A.6758-A (Cohen) Passed Assembly
FISCAL IMPLICATIONS::
TBD.
EFFECTIVE DATE::
This act would take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
7307
2023-2024 Regular Sessions
IN ASSEMBLY
May 17, 2023
___________
Introduced by M. of A. SOLAGES, SAYEGH, TAYLOR, REYES, STIRPE,
DE LOS SANTOS -- 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 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:
1 Section 1. Legislative intent. The legislature hereby finds and
2 declares that the success of innovative energy and environmental tech-
3 nology-oriented businesses with growth potential is essential to the
4 continued economic health and security of New York state. It is further
5 found that the development of new products to assist mature industries
6 undergoing dramatic changes or facing increasing international competi-
7 tion with reducing energy costs and complying with environmental regu-
8 lations, can serve to retain, and even increase, employment. However,
9 commercialization of these products is restrained as numerous small
10 businesses are limited by lack of early stage financing.
11 Therefore, the legislature seeks to provide early stage funds, via a
12 grants program, to stimulate the creation of a substantial number of new
13 businesses and jobs in the energy and environmental sectors of New
14 York's economy.
15 § 2. Section 1 of chapter 174 of the laws of 1968, constituting the
16 New York state urban development corporation act, is amended by adding a
17 new section 16-bb to read as follows:
18 § 16-bb. New York state innovative energy and environmental technology
19 program. 1. Definitions. As used in this section, the following words
20 and terms shall have the following meanings:
21 (a) "Innovative energy technologies" shall mean all methods used to
22 produce, distribute, conserve and store energy by methods which have
23 significant potential for commercialization, with emphasis on renewable
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD06481-02-3
A. 7307 2
1 energy systems as defined in section sixty-six-p of the public service
2 law.
3 (b) "Innovative environmental technologies" shall mean technologies
4 that advance sustainable development by reducing risk, enhancing cost-
5 effectiveness, improving process efficiency, and creating products and
6 processes that are environmentally beneficial or benign and which have
7 significant potential for commercialization. Emerging environmental
8 technologies include, but are not limited to: air, water, and soil
9 pollution control; solid and toxic waste management; site remediation;
10 and environmental monitoring and recycling.
11 (c) "Small businesses" shall mean an independently owned and operated
12 business that meets all of the following conditions: (i) headquartered
13 in the state, and principal business operations located in the state;
14 (ii) employs one hundred or less persons, eighty percent of whom are
15 employed within the state on a full-time basis; and (iii) involved in
16 developing innovative energy and environmental technologies.
17 (d) "Eligible costs" shall mean costs associated with working capital
18 needs, the acquisition or upgrading of equipment, or leasehold improve-
19 ments necessary for commercialization of the product, device, technique,
20 system or process; provided that no other source of funds is available
21 under terms, interest rates, or other conditions that would allow the
22 project to proceed successfully. Eligible costs shall exclude any costs
23 incurred prior to the effective date of this section.
24 2. The corporation is authorized, within available appropriations in
25 the empire state economic development fund established pursuant to
26 section sixteen-m of this act or from any other funds appropriated for
27 the purpose set out in this section, to award capital grants of up to
28 one hundred thousand dollars to small businesses, for the purpose of
29 encouraging and supporting innovative energy and environmental technolo-
30 gy development and commercialization across the state. Such grants shall
31 be awarded on a competitive basis to small business applicants respond-
32 ing to requests for proposals issued by the corporation.
33 3. Grants and contracts made by the corporation pursuant to this
34 section shall be subject to the following:
35 (a) grants shall not exceed one hundred thousand dollars per year;
36 (b) the corporation may not enter into more than one grant per year to
37 a small business; and
38 (c) grants provided by the corporation may only be used for eligible
39 costs.
40 4. Applications for grants authorized under this section shall
41 describe the product, device, technique, system or process which is to
42 be developed, including:
43 (a) a market assessment;
44 (b) an explanation of its technical value;
45 (c) measurable outcomes resulting from its manufacture and sale,
46 including the estimated number of jobs to be created and retained and
47 the salary levels of such jobs;
48 (d) an estimated timeline for bringing it to market, with proposed
49 starting and completion dates and benchmarks; and
50 (e) a budget for its development and marketing that describes how the
51 grant will be used, why the grant from the corporation is essential and
52 cannot be obtained from other sources, and sources and amounts of other
53 funds to be used in its development, marketing and distribution.
54 5. The corporation shall, in consultation with the New York state
55 energy research and development authority and the department of environ-
A. 7307 3
1 mental conservation, develop criteria to be used in evaluating grant
2 applications. Such criteria shall include, but not be limited to:
3 (a) economic impact as measured by such variables as potential reven-
4 ue, job creation, effect on the local economy, global competitiveness,
5 and, purchases from in-state suppliers;
6 (b) ability of the applicant to leverage other funds;
7 (c) financial commitment of the applicant;
8 (d) technical feasibility;
9 (e) likelihood that the economic benefits will be manifest within a
10 six- to twelve-month period, but at most within three years; and
11 (f) likelihood of the product, device, technique, system or process to
12 result in improvements to public health, quality of life, the environ-
13 ment, human or business performance or economic productivity.
14 6. The corporation shall, on or before September 1, 2024 and annually
15 thereafter, submit a report to the governor, the temporary president of
16 the senate and the senate minority leader, the speaker of the assembly,
17 and the minority leader of the assembly, the chairpersons of the senate
18 finance committee and the assembly ways and means committee, and to any
19 other member of the legislature requesting such reports on the effec-
20 tiveness and accomplishments of the New York state innovative energy and
21 environmental technology grants program. Such report shall include for
22 each grant awarded, the name and location of the recipient, a
23 description of the product, device, technique, system or process being
24 commercialized, the amount and use of the grant, the total project cost,
25 the impact of the project on the recipient's business, the number of
26 jobs created or retained, and such other information as the corporation
27 shall deem appropriate.
28 7. Nothing in this section shall require the corporation to disclose
29 any matters involving confidential intellectual property or work prod-
30 uct, whether patentable or not, including any formula, plan, pattern,
31 process, tool, mechanism, compound, procedure, production data or compi-
32 lation of information, which is not patented, but which is known only to
33 certain individuals who are using it to fabricate, produce or compound
34 an article of trade or service having commercial value and which gives
35 its user an opportunity to obtain a business advantage over competitors
36 who do not know it or use it.
37 § 3. This act shall take effect immediately.
