N.Y. Economic Development Law § 261: New York state waste prevention program

§ 261. New York state waste prevention program. 1. As used in this

section, unless a different meaning clearly appears from the context,

the term:

a. "Financing institution" shall mean and include all banks, trust

companies, savings banks, savings and loan associations and credit

unions, whether incorporated, chartered, organized or licensed under the

laws of this state, any other state of the United States or the federal

government. This term may also include public authorities, public

benefit corporations, units of local government, domestic insurance

companies and not-for-profit corporations, which make loans for

improvements for the benefit of eligible applicants.

b. "Eligible applicant" or "applicant" shall mean: a small to medium

size business or nonprofit organization which employs less than five

hundred workers or has gross annual sales of less than ten million

dollars.

c. "Waste" shall have the same meaning as is found in the following

sections of the environmental conservation law: subdivision one of

section 27-0701, subdivision two of section 19-0107 and subdivision five

of section 17-0105 of the environmental conservation law. Such term

shall also include hazardous waste that appears on the list or satisfies

the characteristics of hazardous waste promulgated pursuant to section

27-0903 of the environmental conservation law. Such term shall not

include source, special nuclear or by-product material as defined in the

atomic energy act of 1954, as amended.

d. "Secondary materials" shall mean material recovered from or

otherwise destined for the waste stream, including but not limited to,

post-consumer material, industrial scrap material and overstock or

obsolete inventories from distributors, wholesalers and other companies

as defined in rules and regulations promulgated by the commissioner in

consultation with the commissioner of environmental conservation but

such term does not include those materials and by-products generated

from, and commonly reused within, an original manufacturing process.

e. "Feasibility study" shall mean a technical or economic analysis of

the feasibility of specific applications of waste prevention

technologies or practices or both.

f. "Waste prevention technologies" shall mean any technology employed

to prevent wastes or to process secondary materials for use or reuse but

shall not include technology employed for incineration of waste nor the

processing of waste for use as refuse derived fuel.

g. "Region" shall mean one or more of the economic development regions

created pursuant to section 5-127 of the energy law.

h. "Eligible project" shall mean actions taken by or on behalf of a

New York business involving the acquisition, construction, alteration,

repair or improvement of a building, fixtures, machinery or equipment,

provided that such project results in:

(i) source reduction or material substitution, provided that the

substitution of one hazardous substance, product or nonproduct output

for another does not result in the creation of a new risk,

(ii) in-process recycling,

(iii) recycling or reuse of non-hazardous solid wastes,

(iv) increased energy efficiency,

(v) conservation of the use of water or other natural resources

improvements in process economics,

(vi) elimination of the purchase of materials, the production of which

for the use of said firm would result in more waste or resource

consumption, or

(vii) other practices or technologies that reduce the use of hazardous

materials or otherwise improve air or water quality.

The term "eligible project" shall also include actions taken by or on

behalf of a business to support costs of equipment, and/or the

acquisition and/or rehabilitation of real property or structures located

or to be located in the state related to the collecting, sorting, and

packaging of empty beverage containers as such terms are defined in

title ten of article twenty-seven of the environmental conservation law.

Such actions shall be eligible for state assistance payments under the

beverage container assistance program pursuant to section 27-1018 of the

environmental conservation law.

The term "eligible project" shall not include end of pipe pollution

control technologies or practices where such controls or practices are

designed primarily to achieve compliance with the environmental

conservation law or regulations promulgated pursuant thereto, or energy

recovery or incineration, or out-of-process recycling or reuse of

hazardous waste or hazardous substances.

2. The department shall design and implement a waste prevention

program, which shall promote economic development through environmental

improvement. A high priority for services and assistance provided by or

available to the department shall be to improve the economic and

environmental performance of business through waste prevention.

3. The department shall consult with other agencies as appropriate on

these projects.

4. In carrying out the activities to implement the waste prevention

program, the department shall, to the extent practicable, within amounts

appropriated therefor:

a. collect and maintain information identifying existing manufacturers

within New York state that utilize secondary materials as raw materials

in their manufacturing process;

b. collect, maintain, and provide information to potential users

identifying existing processors of secondary materials within and

outside New York state and items within the waste stream having the

capability for utilization as inputs in processing activities;

c. maintain, provide and market a compilation of existing programs

providing incentives for new or expanded business enterprises which

could be utilized by the secondary materials processing industry;

d. promote the utilization of such incentives for new or expanded

business enterprises which process or utilize secondary materials to

locate in New York state;

e. promote incentives for existing businesses to expand their

utilization of secondary materials and their adoption of waste

prevention technologies and practices;

f. identify special needs and problems facing the secondary materials

processing industry and implementation of waste prevention within New

York state;

g. contact institutions, organizations and commercial enterprises that

are potential consumers of secondary materials and products manufactured

with secondary materials; urging their expanded consumption of secondary

materials and products and establishing markets for such secondary

materials and products through the use of letters of intent and such

other techniques as the commissioner may deem appropriate;

h. conduct market surveys of the potential consumers of secondary

materials and products manufactured with secondary materials;

i. conduct surveys to determine the potential supply of secondary

materials in the state;

j. evaluate the relationship between estimated supply and likely

demand for recovered materials in order to target the department's

efforts to bring about utilization of (i) materials for which supply

exceeds demand to the greatest degree; (ii) materials which would have

the greatest impact on the waste stream if recovered or recycled; and

(iii) materials for which a market can most readily be obtained;

k. develop and facilitate the establishment of markets necessary for

implementation of solid waste management programs;

l. provide information concerning local and regional markets for

secondary materials;

m. assist manufacturers interested in expansion or location of their

facilities or processes within the state with such governmental liaison

matters as siting, zoning, licensing, permitting, funding and other

expansion or location tasks through coordination with the relevant state

and local agencies;

n. identify federal incentives and policies designed to promote such

manufacturing industries;

o. provide other technical assistance to assist businesses in reducing

the amount of waste generated by their processes and productively use or

provide for the productive use of others of wastes which are generated;

p. assist vehicle dismantlers interested in maximizing the utilization

of secondary materials as raw materials in the manufacturing process;

and

q. conduct such other activities as may be appropriate to the intent

and purpose of this section.

5. The department shall fund feasibility studies for testing of waste

prevention technologies or practices or both to reduce the amount of

waste and to promote energy and resource conservation by the adoption of

such technologies or practices by small and medium sized firms in New

York state.

6. Applications. a. The department shall receive applications for

feasibility studies on a competitive basis. Funding shall be provided in

not less than two rounds annually.

b. Applications shall be evaluated based on criteria including but not

limited to the following:

(i) preliminary technical and economic feasibility of the project;

(ii) management ability and commitment to the project;

(iii) financial need;

(iv) the potential for applying the results of the project to other

business enterprises; and

(v) potential cost savings to the business and environmental benefits

to the state.

c. Technical feasibility. The department may consult with other state

agencies, concerning the technical feasibility of the process.

d. Total cost of studies. The state's share of the cost of individual

studies conducted through the program shall not exceed eighty percent of

the total cost or two hundred thousand dollars, whichever is less.

7. Waste prevention financing. The department is hereby authorized to

utilize monies appropriated to the program for the purpose of providing

loans, principal reductions, loan guarantees and interest subsidies for

waste prevention projects for eligible applicants.

8. a. Interest subsidies. The department may enter into cooperative

agreements with one or more cooperating financial institutions within

the state to offer loans for the purposes of this section to eligible

applicants at a rate that is no more than seventy-five percent of the

prime interest rate. Such interest rate shall initially be five percent.

b. Principal reductions and loan guarantees. The department shall be

authorized to utilize monies appropriated to this program for the

purpose of providing principal reductions and loan guarantees for

eligible applicants. Such principal reduction shall be limited to not

more than fifty percent of the amount eligible for a loan through the

program as is provided in subdivision nine of this section.

9. Loan agreements and agreements in connection with loans. Loan

agreements and agreements in connection with loans made pursuant to

subdivision seven of this section shall require that: (a) the maximum

loan per applicant shall be five hundred thousand dollars or no more

than fifty percent of the total project cost, whichever is less; (b)

loans or agreements in connection with loans shall be made only after an

application has been made to the department, the department has approved

the technical merits of the proposed improvement and the department has

notified the cooperating financial institutions of its approval and the

amount of interest or principal reduction or of the approval of a loan

guarantee upon the loan to be funded pursuant to such agreement; and (c)

loan agreements or agreements in connection with loans with program

applicants shall provide for a post installation inspection, as deemed

necessary by the department.

10. Technical feasibility study. The department shall require the

applicant to submit a technical feasibility study which identifies and

analyzes in detail the waste prevention projects which the applicant

wishes to implement. All feasibility studies must include the cost of

implementation, a construction schedule and, a description of how the

project will minimize, reduce or eliminate the generation of wastes, use

or reuse wastes, increase energy efficiency or water conservation,

improve air or water quality and/or improve process economics.

11. Apportionment of monies. The commissioner shall apportion the

monies appropriated for this program for the purpose of providing loans,

interest subsidies, loan guarantees and principal reductions to

applicants within each of the regions of the state identified in

paragraph h of subdivision one of this section.

12. Reapportionment of funds. The department may reapportion the funds

available for loans, interest subsidies, loan guarantees or principal

reductions for applicants within any region for use in one or more of

the other regions upon finding that participation in the program within

the former region would not be adversely affected, and that there exists

in the latter region or regions inadequate funds to satisfy the demand

for program participation. In any fiscal year of the state the amount of

funds available to applicants within any region may be reduced by not

more than twenty-five percent of the total amount apportioned for such

region. A copy of the department's finding shall be given to the

chairman of the senate finance committee and the chairman of the

assembly ways and means committee.

13. Implementation. In implementing this program, the department shall

promulgate rules and regulations. Such rules and regulations may

include, but not be limited to, requirements for applications and

supporting materials and criteria for the selection of cooperating

financial institutions. Such rules and regulations shall also provide in

all agreements for financial assistance for immediate repayment of all

such financial assistance plus interest and penalties if any portion of

a project as defined by paragraph i of subdivision one of this section

is transferred out of New York state.

14. Reports. Beginning on January first, nineteen hundred eighty-nine,

the commissioner shall make an annual report to the governor and the

legislature which shall include, at a minimum, the status of the

activities undertaken pursuant to paragraphs a, c, d, e, f, i, j and k

of subdivision four of this section, the status of any other activities

undertaken pursuant to this article, and recommendations for programs or

policies that will further the objectives of expanding the utilization

of secondary materials recovered for reuse within the state. The

provisions of this subdivision shall not be deemed to require or

authorize the disclosure of confidential information or trade secrets.

This report may be consolidated with the report required by subdivision

four of section two hundred sixty-three of this article.

15. Evaluation. The department shall submit to the director of the

division of the budget, the chairman and ranking minority member of the

senate finance committee and the chairman and ranking minority member of

the assembly ways and means committee an evaluation of this program

prepared by an entity independent of the department. Such evaluation

shall be submitted by September first, nineteen hundred ninety and by

September first, every two years thereafter.