N.Y. Economic Development Law § 262: New York state agricultural wastewater energy conservation loan program

§ 262. New York state agricultural wastewater energy conservation loan

program. 1. Definitions. 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 business involved

in food processing which employs less than five hundred workers or has

gross annual sales of less than ten million dollars and which owns the

building to be improved with the proceeds of a program loan or which has

a lease or management agreement for the building.

c. "Food processors" shall mean businesses engaged in the processing

of vegetables, fruits, meats, dairy products or other food products.

d. "Loan" or "program loan" shall mean a loan from the department or a

cooperating financing institution pursuant to an agreement with the

department as part of the New York state agricultural wastewater energy

conservation loan program.

e. "Program" shall mean the New York state agricultural wastewater

energy conservation loan program.

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

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

g. "Wastewater treatment project" shall mean the acquisition,

construction, alteration, repair or improvement of a building, fixtures,

machinery or equipment constituting a facility which provides treatment

of wastewater to improve its quality and which reduces energy

consumption provided that: (i) the cost of such improvement will be

returned in savings in energy costs within a period of not less than one

year nor more than ten years as identified in an energy audit; (ii) work

on such improvement commenced after submittal of an application under

the program; and (iii) such construction, alteration, repair or

improvement is permissible under federal requirements and court

decisions applicable to overcharge funds appropriated to this program.

2. Agricultural wastewater treatment energy conservation loans. The

department is hereby authorized to utilize monies appropriated to this

program for the purpose of providing loans, principal reductions, loan

guarantees and interest subsidies for wastewater treatment for

businesses engaged in food processing.

3. 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 by 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, if such uses are permissible under the conditions

applicable to the appropriated overcharge funds. 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 this section.

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

agreements and agreements in connection with loans made pursuant to this

section shall provide that: (a) the maximum loan per applicant shall be

two hundred fifty thousand dollars; (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 with program applicants shall provide for a post installation

inspection, as deemed necessary by the department.

5. Technical feasibility study. The department shall require the

applicant to submit a technical feasibility study. All technical

feasibility studies must include the cost of implementation, a

construction schedule and expected energy savings.

6. 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 f of subdivision one of this section.

7. 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.

8. Implementation. In implementing the program, the department shall

promulgate rules and regulations formulated after consultation with the

department of environmental conservation, the energy office and the

superintendent of financial services. 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.