Relates to a New York state three phase power revolving loan program

2 Co-sponsors

• Patrick M. Gallivan
• Kathleen A. Marchione

BILL NUMBER:S5199

Title of bill

An act to amend the state finance law, in relation to a New York state three phase power revolving loan program

Purpose

This bill establishes a revolving loan program to provide farmers throughout New York State with low interest loans so that they can upgrade their electricity to three phase power.

Summary of provisions

Section 1 adds a new section 97-u to the State Finance Law. 97-u establishing the New York State Three Phase Power Revolving Loan Program. The program will be carried out by the New York State Energy Research and Development Authority (NYSERDA) for the purpose of providing farmers with low interest loans to upgrade their electricity to three phase power.

This section also authorizes NYSERDA to promulgate the rules and regulations for the purpose of carrying out the provision of this act, including, an application process, standards for determining farmers' eligibility for a loam, standards for determining the priority of the three phase power project, standards for determining the amount of financial assistance to be provided to the farmer, and repayment periods and agreements.

Section 2 provides the effective date.

Justification

As technology continues to change and advance, so too does the need for steady and reliable electricity to support the changes and advances in technology. The farm is no exception. New and modern farm equipment requires steady and reliable electricity. The current form of electricity, single phase power, is no longer strong enough or reliable enough to support new and modern farm equipment. To remain competitive and be able to grow, farms are being faced with the need to upgrade the type of electricity that comes into their farm to three phase power. Three phase power provides three alternating currents that reach their instantaneous peak value at one third of a cycle from each other.

Upgrading to three phase power, however, is extremely expensive. It requires the installation of new lines and equipment that bring the three phase power from its current closest location to the farm. Farmers need financial assistance to help cover the cost of this necessary upgrade. This bill creates the New York State Three Phase Power Revolving Loan Program. This will provide farmers throughout New York State with low interest loans to help cover the cost of bringing three phase power to their farm.

Legislative history

New bill.

Fiscal implications

To be determined.

Effective date

This act shall take effect on the ninetieth day after it shall have become a law. Effective immediately, any rules and regulations necessary to implement the provisions of this act on its effective date are authorized to be promulgated on or before such date.