(i) source reduction or material substitution, provided that the substitution of one hazardous substance, product or nonproduct output for another does not result in the creation of a new risk,

(ii) in-process recycling,

(iii) recycling or reuse of non-hazardous solid wastes,

(iv) increased energy efficiency,

(v) conservation of the use of water or other natural resources improvements in process economics,

(vi) elimination of the purchase of materials, the production of which for the use of said firm would result in more waste or resource consumption, or

(vii) other practices or technologies that reduce the use of hazardous materials or otherwise improve air or water quality. The term "eligible project" shall not include end of pipe pollution control technologies or practices where such controls or practices are designed primarily to achieve compliance with the environmental conservation law or regulations promulgated pursuant thereto, or energy recovery or incineration, or out-of-process recycling or reuse of hazardous waste or hazardous substances. f. "State assistance payment" means the payment of monies by the state to municipalities, other governmental entities or non-profit organizations for undertaking, pursuant to contract, projects authorized by the environmental protection act which added this section to preserve, enhance, restore and improve the quality of the state's environment. g. "Waste" shall have the meaning provided in paragraph c of subdivision one of section two hundred sixty-one of this article. 2. Purpose. The department is authorized, within amounts appropriated, to design and implement a waste prevention program which shall promote economic development and environmental improvement. 3. Designation. The department shall be the agency responsible for providing assistance to applicants for the waste prevention program. 4. Technical assistance. The department is authorized to undertake the following activities including: a. identifying secondary material markets; b. serving as a clearinghouse of market information, market conditions and marketing strategies for such materials; and c. providing assistance to applicants for facilitating secondary materials market contracting arrangements. 5. Waste prevention state assistance payments. a. The department is authorized to provide, on a competitive basis, within amounts appropriated, state assistance payments to assist applicants in undertaking secondary materials market development or waste prevention activities. b. The department shall consider the following criteria in evaluating project applications:

(i) the ability of the applicant to achieve the goals of the project, including the ability to minimize, reduce, or eliminate the generation of wastes, use or reuse waste, increase energy efficiency and/or water conservation, improve air or water quality and/or improve process economics;

(ii) the appropriateness of the proposed project in fulfilling regional economic development and environmental improvement needs;

(iii) (iii) the economic and technical feasibility of the proposed project;

(iv) the commitment of the applicant to implement the short and long term goals of the proposed project; and

(v) the extent to which selection of the project would ensure, to the extent practicable, a regional distribution of projects across the state. c. State assistance payments shall not exceed fifty percent of the project cost; provided, however, that costs funded through other state waste prevention programs shall not be eligible for funding under this section. 6. Contracts for state assistance payments. The commissioner, in consultation with the commissioner of environmental conservation, may enter into contracts with applicants to provide state assistance payments toward the cost of secondary materials utilization or waste prevention projects. Such contracts shall include the following provisions:

(i) An estimate of the costs of the project as determined by the commissioner.

(ii) An agreement by the commissioner to make state assistance payments toward the cost of the project by periodically reimbursing the applicant during the progress of project development or following completion of the project as may be agreed upon by the parties.

(iii) An agreement by the applicant:

(1) to proceed expeditiously with and complete the project as approved by the commissioner;

(2) to continue operation of the project and not to dispose of the project or any portion thereof or change its use without the approval of the commissioner; and to not sell, lease or otherwise dispose of or use lands acquired under this section for any purpose inconsistent with the project under which such land is acquired;

(3) to operate and maintain the project in accordance with applicable law, rules and regulations;

(4) to provide for the payment of the applicant's share of the cost of the project;

(5) to repay, within one year of notification by the commissioner, any state assistance payment made toward the cost of the project or an equitable portion of such monies declared appropriate by the commissioner, if the applicant:

(A) fails to complete the project as approved,

(B) disposes of the project, or any portion thereof, without the prior written approval of the commissioner, or

(C) changes the use of the project, or any portion thereof, without the prior written approval of the commissioner. No repayment, however, shall be required where the commissioner determines that such failure, disposition or change of use was immediately necessary to protect public health and safety; and

(6) The department shall monitor the performance of each project and shall require periodic and annual reports, as applicable, regarding each secondary material utilization or waste prevention project at such time and in such manner as prescribed by the commissioner. The commissioner shall furnish a copy of such reports to the governor, the commissioner of environmental conservation, the majority leader of the senate and the speaker of the assembly. 7. Consultation. The commissioner may consult with other state agencies as appropriate in furthering the purpose of this section. 8. Implementation. In implementing this program, the department shall promulgate rules and regulations. Such rules and regulations may include, but not be limited to, requirements for applications and supporting materials. Such rules and regulations shall also provide in all agreements for financial assistance for immediate repayment of all such financial assistance plus interest and penalties if any portion of a project as defined by paragraph i of subdivision one of section two hundred sixty-one of this article is transferred out of New York state.