N.Y. Comp. Codes R. & Regs. tit. 17, § 15.8 – Procedures for funding and permit-granting where the department is not the lead agency.

(a) Where the department is notified by the lead agency that it has determined that the proposed action of the applicant is either type II or excluded, or has been determined by the lead agency to be an action which will not have a significant effect on the environment, the department may fund such action or grant such permit, as the case may be, and shall have no further obligation with respect to this Part. In the case of an action in a coastal area, the provisions of 19 NYCRR Part 600 may also apply and will, if applicable, be complied with by the department.
(b) Where the department is notified by the lead agency that the action is a major Federal action significantly affecting the quality of the human environment subject to the requirements of NEPA, the department shall follow those procedures necessary for its compliance with NEPA. Upon completion of the Federal FEIS, the department may fund such action or grant such permit, as the case may be, and shall have no further obligation with respect to this Part, provided that the department has:
1. (1) given consideration to the Federal FEIS; and
2. (2) prepared a record of decision in accordance with section 15.9 of this Part.
(c) Where the department is notified by the lead agency that it has determined that the proposed action of the applicant may have a significant effect on the environment and a Federal FEIS is not being prepared, the obligation of the department shall be to review and comment upon the DEIS. Upon the submission to the department by the lead agency of the FEIS for the proposed action of the applicant, the department may fund such action or grant such permit, as the case may be, provided that the department has:
1. (1) given consideration to the FEIS; and
2. (2) prepared a record of decision in accordance with section 15.9 of this Part.