NY Energy L § 5-127 (2021)
2021 New York Laws ENG - Energy Article 5 - State Energy Office; Organization and Powers, Functions and Duties 5-127 - New York State Business Energy Conservation Loan Program.

§ 5-127. New York state business energy conservation loan program.  1. As used in this section, unless a different meaning clearly appears from the context, the term:   a. "Agri-business"  shall  mean  (i)  an  individual,  partnership  or corporation involved  in  farm  production  which  (1)  has  had  twenty thousand  dollars  or more in gross farm production related sales in the twelve-month period prior to the submission of a program application, or from which at least fifty percent of the applicant's income was  derived during  such  period,  or (2) if the applicant has not been in operation for the prior twelve-month period, certifies that sales are projected in excess of twenty thousand dollars, or at  least  fifty  percent  of  the applicant's  income  is  projected  to  be derived, from farm production during the next twelve-month period; or (ii) a business involved in food processing.   b. "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.   c. "Eligible applicant" or "applicant"  shall  mean  (i)  a  small  to medium size business or a not-for-profit corporation that is a veteran's organization  which  employs less than five hundred workers or has gross annual sales of less than ten million dollars, or (ii) an agri-business, and which is the owner or which has  a  lease  or  management  agreement extending  beyond  the  loan term of a building located within the state for which an eligible energy conservation improvement is made,  provided that   the   commissioner  may  qualify  this  definition  by  rule  and regulation.   d. "Eligible energy conservation improvement" or  "improvement"  shall mean  the  construction, alteration, repair or improvement to a building or equipment affixed to, contained in or on the grounds of the  building 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.   e. "Energy  audit" shall mean a process which identifies and specifies the energy and cost savings which  are  likely  to  be  realized  by  an eligible energy conservation improvement.   f. "Loan"  or  "program  loan"  shall  mean  a  loan  from a financing institution pursuant to an agreement with the office as part of the  New York state business energy conservation loan program.   g. "Program"   shall   mean   the   New  York  state  business  energy conservation loan program.   h. "Region" shall mean one  or  more  of  the  following  named  areas comprised of the counties indicated:  (1)   Buffalo-Rochester:   Cattaraugus,   Chautauqua,  Erie,  Genesee, Livingston, Monroe, Niagara, Ontario, Orleans,  Seneca,  Wayne,  Wyoming and Yates counties;  (2)   Syracuse-Southern   Tier:  Allegany,  Broome,  Cayuga,  Chemung, Chenango,  Cortland,  Delaware,  Madison,  Onondaga,   Oswego,   Otsego, Schuyler, Steuben, Tioga and Tompkins counties;  (3)   Central-Northern:  Albany,  Clinton,  Essex,  Franklin,  Fulton, Hamilton, Herkimer, Jefferson, Lewis,  Montgomery,  Oneida,  Rensselaer, Saratoga,  Schenectady,  Schoharie,  St. Lawrence, Warren and Washington counties;  (4)  Westchester-Mid-Hudson:  Columbia,  Dutchess,   Greene,   Orange, Putnam, Rockland, Sullivan, Ulster and Westchester counties;  (5) Long Island: Nassau and Suffolk counties;  (6) New York City: the five counties comprising the city of New York.   2. The commissioner is hereby authorized and directed to establish the New  York  state  business energy conservation loan program. The program shall  facilitate  below  market  interest  rate  loans   by   financing institutions   within   the   state  for  eligible  energy  conservation improvements made to eligible applicants as hereinafter provided.   3.  The  commissioner  may  enter  into  cooperative  agreements  with financing  institutions  within  the  state  for  the financing with the institution's own assets of eligible energy conservation improvements by eligible applicants at a rate that is at least twenty-five percent below the prime interest rate. Such interest  rate  shall  initially  be  five percent.  The  commissioner  shall  agree  to  utilize such funds as are appropriated to this program and the earnings produced on such funds  to underwrite  interest  subsidies on loans made to eligible applicants, if not inconsistent with federal requirements and court decisions directing the payment of petroleum overcharge funds to the state. Such  agreements shall  provide  that:  (i)  the maximum loan per applicant shall be five hundred thousand dollars, except that the commissioner may increase  the maximum  loan  amount  up  to  one million dollars for specific types of improvements by rule and regulation, (ii) the duration of the loan shall not to exceed ten years, (iii) program loans shall be made only after an application has been made to the office, the  office  has  approved  the technical merits of the proposed improvement and the office has notified the  financing  institution  of  its approval and the amount of interest reduction upon the loan to be funded pursuant  to  such  agreement,  and (iv)  loan  agreements  with program applicants shall provide for a post installation inspection, as deemed necessary by the office.   4. The commissioner shall apportion the moneys appropriated  for  this program  for  the  purpose of providing interest subsidies to applicants within each of the six regions of the state identified in paragraph g of subdivision one of this section based on the ratio,  calculated  by  the commissioner, which reflects:   a.  the  volume  of  refined  petroleum  products consumed within that region during the period beginning  September  first,  nineteen  hundred seventy-three,   and  ending  January  twenty-eighth,  nineteen  hundred eighty-one, compared to   b. the volume of refined petroleum products consumed  within  the  six regions during such period.   Such  calculation  shall  be  made  by the commissioner upon estimates determined by him in reliance upon reasonably available information.   The commissioner may reapportion  the  funds  available  for  interest subsidies  for  applicants  within any region under this subdivision 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 commissioner's finding  shall be  given  to  the  chairman  of  the  senate  finance committee and the chairman of the assembly ways and means committee.   5.  In  addition  to  the authority granted under subdivision three of this section, the commissioner shall be  authorized  to  utilize  monies appropriated   to  this  program  for  the  purpose  of  providing  loan guaranties and principal reductions for  eligible  applicants,  if  such uses are permissible under the conditions applicable to the appropriated overcharge funds. Principal reductions shall be limited to the amount of the  interest  subsidy which would otherwise be available to an eligible applicant under subdivision three of this section.   6. In implementing the program, the commissioner is authorized to take such action as he deems necessary and appropriate which may include  but not  be  limited to the promulgation of rules and regulations formulated after consultation with the energy research and  development  authority, the  department  of  commerce  and the department 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 financing institutions.