New York Laws
Article 5 - State Energy Office; Organization and Powers, Functions and Duties
5-127 - New York State Business Energy Conservation Loan Program.

(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 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.

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