2006 New York Code - 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 banking. 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.