N.Y. COM Law § 262 — New York Code / Act COM / Article 14 / Section 262
New York state agricultural wastewater energy conservation loan program
Status: in_force

§ 262. New York state agricultural wastewater energy conservation loan\nprogram. 1. Definitions. As used in this section, unless a different\nmeaning clearly appears from the context, the term:\n  a. "Financing institution" shall mean and include all banks, trust\ncompanies, savings banks, savings and loan associations and credit\nunions, whether incorporated, chartered, organized or licensed under the\nlaws of this state, any other state of the United States or the federal\ngovernment. This term may also include public authorities, public\nbenefit corporations, units of local government, domestic insurance\ncompanies and not-for-profit corporations, which make loans for\nimprovements for the benefit of eligible applicants.\n  b. "Eligible applicant" or "applicant" shall mean: a business involved\nin food processing which employs less than five hundred workers or has\ngross annual sales of less than ten million dollars and which owns the\nbuilding to be improved with the proceeds of a program loan or which has\na lease or management agreement for the building.\n  c. "Food processors" shall mean businesses engaged in the processing\nof vegetables, fruits, meats, dairy products or other food products.\n  d. "Loan" or "program loan" shall mean a loan from the department or a\ncooperating financing institution pursuant to an agreement with the\ndepartment as part of the New York state agricultural wastewater energy\nconservation loan program.\n  e. "Program" shall mean the New York state agricultural wastewater\nenergy conservation loan program.\n  f. "Region" shall mean one or more of the economic development regions\ncreated pursuant to section 5-127 of the energy law.\n  g. "Wastewater treatment project" shall mean the acquisition,\nconstruction, alteration, repair or improvement of a building, fixtures,\nmachinery or equipment constituting a facility which provides treatment\nof wastewater to improve its quality and which reduces energy\nconsumption provided that: (i) the cost of such improvement will be\nreturned in savings in energy costs within a period of not less than one\nyear nor more than ten years as identified in an energy audit; (ii) work\non such improvement commenced after submittal of an application under\nthe program; and (iii) such construction, alteration, repair or\nimprovement is permissible under federal requirements and court\ndecisions applicable to overcharge funds appropriated to this program.\n  2. Agricultural wastewater treatment energy conservation loans. The\ndepartment is hereby authorized to utilize monies appropriated to this\nprogram for the purpose of providing loans, principal reductions, loan\nguarantees and interest subsidies for wastewater treatment for\nbusinesses engaged in food processing.\n  3. a. Interest subsidies. The department may enter into cooperative\nagreements with one or more cooperating financial institutions within\nthe state to offer loans for the purposes of this section by eligible\napplicants at a rate that is no more than seventy-five percent of the\nprime interest rate. Such interest rate shall initially be five percent.\n  b. Principal reductions and loan guarantees. The department shall be\nauthorized to utilize monies appropriated to this program for the\npurpose of providing principal reductions and loan guarantees for\neligible applicants, if such uses are permissible under the conditions\napplicable to the appropriated overcharge funds. Such principal\nreduction shall be limited to not more than fifty percent of the amount\neligible for a loan through the program as is provided in this section.\n  4. Loan agreements and agreements in connection with loans. Loan\nagreements and agreements in connection with loans made pursuant to this\nsection shall provide that: (a) the maximum loan per applicant shall be\ntwo hundred fifty thousand dollars; (b) loans or agreements in\nconnection with loans shall be made only after an application has been\nmade to the department, the department has approved the technical merits\nof the proposed improvement and the department has notified the\ncooperating financial institutions of its approval and the amount of\ninterest or principal reduction or of the approval of a loan guarantee\nupon the loan to be funded pursuant to such agreement; and (c) loan\nagreements with program applicants shall provide for a post installation\ninspection, as deemed necessary by the department.\n  5. Technical feasibility study. The department shall require the\napplicant to submit a technical feasibility study. All technical\nfeasibility studies must include the cost of implementation, a\nconstruction schedule and expected energy savings.\n  6. Apportionment of monies. The commissioner shall apportion the\nmonies appropriated for this program for the purpose of providing loans,\ninterest subsidies, loan guarantees and principal reductions to\napplicants within each of the regions of the state identified in\nparagraph f of subdivision one of this section.\n  7. Reapportionment of funds. The department may reapportion the funds\navailable for loans, interest subsidies, loan guarantees or principal\nreductions for applicants within any region for use in one or more of\nthe other regions upon finding that participation in the program within\nthe former region would not be adversely affected, and that there exists\nin the latter region or regions inadequate funds to satisfy the demand\nfor program participation. In any fiscal year of the state the amount of\nfunds available to applicants within any region may be reduced by not\nmore than twenty-five percent of the total amount apportioned for such\nregion. A copy of the department's finding shall be given to the\nchairman of the senate finance committee and the chairman of the\nassembly ways and means committee.\n  8. Implementation. In implementing the program, the department shall\npromulgate rules and regulations formulated after consultation with the\ndepartment of environmental conservation, the energy office and the\nsuperintendent of financial services. Such rules and regulations may\ninclude, but not be limited to, requirements for applications and\nsupporting materials and criteria for the selection of cooperating\nfinancial institutions.\n