N.Y. ENG Law § 5-127 — New York Code / Act ENG / Article 5 / Section 5-127
New York state business energy conservation loan program
Status: in_force

§ 5-127. New York state business energy conservation loan program.  1.\nAs used in this section, unless a different meaning clearly appears from\nthe context, the term:\n  a. "Agri-business" shall mean (i) an individual, partnership or\ncorporation involved in farm production which (1) has had twenty\nthousand dollars or more in gross farm production related sales in the\ntwelve-month period prior to the submission of a program application, or\nfrom which at least fifty percent of the applicant's income was derived\nduring such period, or (2) if the applicant has not been in operation\nfor the prior twelve-month period, certifies that sales are projected in\nexcess of twenty thousand dollars, or at least fifty percent of the\napplicant's income is projected to be derived, from farm production\nduring the next twelve-month period; or (ii) a business involved in food\nprocessing.\n  b. "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.\n  This term may also include public authorities, public benefit\ncorporations, units of local government, domestic insurance companies\nand not-for-profit corporations, which make loans for improvements for\nthe benefit of eligible applicants.\n  c. "Eligible applicant" or "applicant" shall mean (i) a small to\nmedium size business or a not-for-profit corporation that is a veteran's\norganization which employs less than five hundred workers or has gross\nannual sales of less than ten million dollars, or (ii) an agri-business,\nand which is the owner or which has a lease or management agreement\nextending beyond the loan term of a building located within the state\nfor which an eligible energy conservation improvement is made, provided\nthat the commissioner may qualify this definition by rule and\nregulation.\n  d. "Eligible energy conservation improvement" or "improvement" shall\nmean the construction, alteration, repair or improvement to a building\nor equipment affixed to, contained in or on the grounds of the building\nwhich reduces energy consumption provided that: (i) the cost of such\nimprovement will be returned in savings in energy costs within a period\nof not less than one year nor more than ten years as identified in an\nenergy audit, (ii) work on such improvement commenced after submittal of\nan application under the program, and (iii) such construction,\nalteration, repair or improvement is permissible under federal\nrequirements and court decisions applicable to overcharge funds\nappropriated to this program.\n  e. "Energy audit" shall mean a process which identifies and specifies\nthe energy and cost savings which are likely to be realized by an\neligible energy conservation improvement.\n  f. "Loan" or "program loan" shall mean a loan from a financing\ninstitution pursuant to an agreement with the office as part of the New\nYork state business energy conservation loan program.\n  g. "Program" shall mean the New York state business energy\nconservation loan program.\n  h. "Region" shall mean one or more of the following named areas\ncomprised of the counties indicated:\n  (1) Buffalo-Rochester: Cattaraugus, Chautauqua, Erie, Genesee,\nLivingston, Monroe, Niagara, Ontario, Orleans, Seneca, Wayne, Wyoming\nand Yates counties;\n  (2) Syracuse-Southern Tier: Allegany, Broome, Cayuga, Chemung,\nChenango, Cortland, Delaware, Madison, Onondaga, Oswego, Otsego,\nSchuyler, Steuben, Tioga and Tompkins counties;\n  (3) Central-Northern: Albany, Clinton, Essex, Franklin, Fulton,\nHamilton, Herkimer, Jefferson, Lewis, Montgomery, Oneida, Rensselaer,\nSaratoga, Schenectady, Schoharie, St. Lawrence, Warren and Washington\ncounties;\n  (4) Westchester-Mid-Hudson: Columbia, Dutchess, Greene, Orange,\nPutnam, Rockland, Sullivan, Ulster and Westchester counties;\n  (5) Long Island: Nassau and Suffolk counties;\n  (6) New York City: the five counties comprising the city of New York.\n  2. The commissioner is hereby authorized and directed to establish the\nNew York state business energy conservation loan program. The program\nshall facilitate below market interest rate loans by financing\ninstitutions within the state for eligible energy conservation\nimprovements made to eligible applicants as hereinafter provided.\n  3. The commissioner may enter into cooperative agreements with\nfinancing institutions within the state for the financing with the\ninstitution's own assets of eligible energy conservation improvements by\neligible applicants at a rate that is at least twenty-five percent below\nthe prime interest rate. Such interest rate shall initially be five\npercent. The commissioner shall agree to utilize such funds as are\nappropriated to this program and the earnings produced on such funds to\nunderwrite interest subsidies on loans made to eligible applicants, if\nnot inconsistent with federal requirements and court decisions directing\nthe payment of petroleum overcharge funds to the state. Such agreements\nshall provide that: (i) the maximum loan per applicant shall be five\nhundred thousand dollars, except that the commissioner may increase the\nmaximum loan amount up to one million dollars for specific types of\nimprovements by rule and regulation, (ii) the duration of the loan shall\nnot to exceed ten years, (iii) program loans shall be made only after an\napplication has been made to the office, the office has approved the\ntechnical merits of the proposed improvement and the office has notified\nthe financing institution of its approval and the amount of interest\nreduction upon the loan to be funded pursuant to such agreement, and\n(iv) loan agreements with program applicants shall provide for a post\ninstallation inspection, as deemed necessary by the office.\n  4. The commissioner shall apportion the moneys appropriated for this\nprogram for the purpose of providing interest subsidies to applicants\nwithin each of the six regions of the state identified in paragraph g of\nsubdivision one of this section based on the ratio, calculated by the\ncommissioner, which reflects:\n  a. the volume of refined petroleum products consumed within that\nregion during the period beginning September first, nineteen hundred\nseventy-three, and ending January twenty-eighth, nineteen hundred\neighty-one, compared to\n  b. the volume of refined petroleum products consumed within the six\nregions during such period.\n  Such calculation shall be made by the commissioner upon estimates\ndetermined by him in reliance upon reasonably available information.\n  The commissioner may reapportion the funds available for interest\nsubsidies for applicants within any region under this subdivision for\nuse in one or more of the other regions upon finding that participation\nin the program within the former region would not be adversely affected,\nand that there exists in the latter region or regions inadequate funds\nto satisfy the demand for program participation. In any fiscal year of\nthe state, the amount of funds available to applicants within any region\nmay be reduced by not more than twenty-five percent of the total amount\napportioned for such region. A copy of the commissioner's finding shall\nbe given to the chairman of the senate finance committee and the\nchairman of the assembly ways and means committee.\n  5. In addition to the authority granted under subdivision three of\nthis section, the commissioner shall be authorized to utilize monies\nappropriated to this program for the purpose of providing loan\nguaranties and principal reductions for eligible applicants, if such\nuses are permissible under the conditions applicable to the appropriated\novercharge funds. Principal reductions shall be limited to the amount of\nthe interest subsidy which would otherwise be available to an eligible\napplicant under subdivision three of this section.\n  6. In implementing the program, the commissioner is authorized to take\nsuch action as he deems necessary and appropriate which may include but\nnot be limited to the promulgation of rules and regulations formulated\nafter consultation with the energy research and development authority,\nthe department of commerce and the department of financial services.\nSuch rules and regulations may include but not be limited to\nrequirements for applications and supporting materials and criteria for\nthe selection of cooperating financing institutions.\n