NY Econ Dev L § 262 (2021)
2021 New York Laws COM - Economic Development Law Article 14 - Office of Waste Prevention Services 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.