§ 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.