Section 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 banks. 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.