S 734: 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.

  
  STATE OF NEW YORK ________________________________________________________________________ 734 2025-2026 Regular Sessions  IN SENATE (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: 1 Section 1. The public authorities law is amended by adding a new 2 section 1018 to read as follows: 3 § 1018. Energy project revolving loan program. 1. For the purposes of 4 this section, the following terms shall have the following meanings: 5 (a) "Program" means the energy project revolving loan program estab- 6 lished pursuant to this section. 7 (b) "Eligible energy project" means a zero-emission energy generation 8 project. 9 (c) "Energy producing entity" means a public entity, not-for-profit 10 entity, or utility, proposing a zero-emission energy generation project. 11 "Energy producing entity" shall include, but not be limited to, the 12 power authority of the state of New York. 13 (d) "Project labor agreement" means a pre-hire collective bargaining 14 agreement between the authority, or a third party on behalf of the 15 authority, and a bona fide building and construction trade labor organ- 16 ization establishing the labor organization as the collective bargaining 17 representative for all persons who will perform work on a public work 18 project, and which provides that only contractors and subcontractors who 19 sign a pre-negotiated agreement with the labor organization can perform 20 project work. 21 2. The authority, in collaboration with the Green Bank, a division of 22 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 1 authorized and directed to establish an energy project revolving loan 2 program to provide zero-percent interest or low-percent interest loans, 3 in accordance with subdivision four of this section, to energy producing 4 entities to finance eligible energy projects. Notwithstanding the 5 provisions of any law to the contrary, state financial assistance in the 6 form of a loan may be provided for costs of eligible projects for capi- 7 tal costs related to such projects. 8 3. The authority shall issue a competitive request for proposals from 9 energy producing entities to receive loans under the program for eligi- 10 ble energy projects. The authority shall make a determination as to the 11 energy producing entities to be awarded state financial assistance under 12 this section, and the amount of such financial assistance. In making 13 such determinations, the authority shall conduct a cost-benefit analy- 14 sis, comparing the potential occurrence of such project against the 15 baseline of such project not occurring, to determine the overall bene- 16 fits of such proposed energy project to the state and to ratepayers. An 17 eligible energy project shall be proven to be beneficial to the state 18 and to ratepayers in order for financial assistance to be awarded for 19 such project. The authority shall also consider the probability of 20 completion of such eligible energy project in making such determi- 21 nations, in order to ensure a high probability of completion of eligible 22 energy projects for which financial assistance is awarded. 23 4. Financial assistance awarded under subdivision three of this 24 section shall be provided from the energy project revolving loan fund 25 established under section ninety-nine-ss of the state finance law. Such 26 financial assistance shall be awarded in the form of a loan, with a 27 zero-interest or low-interest rate, to be determined by the agency. In 28 determining such interest rates and loan structures, the authority shall 29 have the goal of covering all costs related to the operation of the 30 program, without seeking to maximize additional profits. 31 5. An energy producing entity awarded a loan under this section shall 32 return the full amount of such loan and any interest due thereupon to 33 the program upon completion of the eligible energy project for which 34 such loan was awarded. An energy producing entity shall obtain permanent 35 financing for an eligible energy project from a source other than the 36 program for any remaining debt no later than five years after initially 37 receiving a loan under this section. Funds received by the energy 38 producing entity from the program shall be returned to the energy 39 project revolving loan fund established under section ninety-nine-ss of 40 the state finance law. 41 6. All eligible energy projects subject to this section shall be 42 deemed public work and subject to and performed in accordance with arti- 43 cles eight and nine of the labor law. Each contract for such eligible 44 energy project shall contain a provision that such projects may only be 45 undertaken pursuant to a project labor agreement. All contractors and 46 subcontractors associated with such work shall be required to utilize 47 apprenticeship agreements as defined by article twenty-three of the 48 labor law. 49 § 2. The state finance law is amended by adding a new section 99-ss to 50 read as follows: 51 § 99-ss. Energy project revolving loan fund. 1. There is hereby estab- 52 lished in the joint custody of the state comptroller and the commission- 53 er of taxation and finance a special fund to be known as the "energy 54 project revolving loan fund". 55 2. The energy project revolving loan fund shall consist of all monies 56 appropriated, credited, or transferred thereto from the general fund or 
 S. 734 3 1 any other source pursuant to law, including the repayment of loans 2 provided under section one thousand eighteen of the public authorities 3 law. 4 3. Moneys of the account, when allocated, shall be available to the 5 chief executive officer of the power authority of the state of New York 6 to make loans pursuant to section one thousand eighteen of the public 7 authorities law. 8 § 3. This act shall take effect on the ninetieth day after it shall 9 have become a law. Effective immediately, the addition, amendment and/or 10 repeal of any rule or regulation necessary for the implementation of 11 this act on its effective date are authorized to be made and completed 12 on or before such effective date.