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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

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

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

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

(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.