Section 5-127. New York state business energy conservation loan program


Latest version.
  • 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.