The Department of Environmental Conservation (DEC) is responsible for
conserving and improving the State's natural resources and environment,
as well as controlling water, land and air pollution, to enhance the
health, safety and general welfare of New York State's residents. DEC
responsibilities also include administering previous environmental bond
act funds, and administering the State's Environmental Protection Fund
(EPF).
The Department is included in the Transportation, Economic Development
and Environmental Conservation appropriation bill.
State Operations
The Executive proposes 3,301 full-time equivalent (FTE) positions in State
Fiscal Year (SFY) 2003-04, a net decrease of 234 positions below SFY
2002-03 levels, attributed to an early retirement incentive within the
Department. This net decrease results from the attrition of 171 General
Fund FTE's, combined with the attrition of 63 Special Revenue Funds
Other FTE's.
The Executive proposes State Operations General Fund appropriations
totaling $99,321,000 in State Fiscal Year (SFY) 2003-04, reflecting a net
decrease of $9,715,500 or 8.9 percent, from SFY 2002-03 levels. Included
in this decrease are the following:
- an $8.6 million personal service decrease resulting from the
reduction of 241 FTE positions; including $4.7 million related to
half-year savings from the reduction of 171 positions from an
early retirement incentive within the Department, $3.9 million
related to full-year savings from 70 positions shifted to Special
Revenue-Other Funds and Capital Projects Funds within the Department
(40 are shifted to the Environmental Protection Fund (EPF), seven
to the Clean Water State Revolving Loan Fund (CWSRF), 18 to the
Environmental Regulatory Account and five to the Mined Land
Reclamation Account);
- a $1.3 million nonpersonal service net decrease in the Operations
Program resulting from General Fund leasing cost shifts totaling
$1.6 million: $330,000 to the Low Level Radioactive Waste Account;
$500,000 to the Conservation Fund; $500,000 to the Oil Spill Fund;
and $255,000 to the Recreation Account. These cost shifts are offset
by a $300,000 increase for vehicle financing, real property leases,
electricity, telecommunications and supplies; and
- a $100,000 nonpersonal service increase for inflationary costs
and a $100,000 increase for Maintenance Undistributed Funds in the
Environmental Enforcement Program, for costs related to the New York
City watershed agreement.
The Executive proposes State Operations Special Revenue Other appropriations
totaling $211,331,800, a net decrease of $16,292,400 or 7.2 percent. This
decrease is primarily related to the elimination of $28,000,000 from the
Site Investigation and Construction Account of the Hazardous Waste Remedial
Fund which reflects the proposed transfer of Superfund administration costs
(254 positions) to a new Capital Projects Fund, the Remedial Program Transfer
Fund (see Remediation Programs section below). This decrease is partially
offset by $11.7 million of increases from the following:
- $2.5 million from the Waste Tire Management and Recycling Account
to fund a new Waste Tire Management Program (see new Environmental
Fee Increases section below);
- $1.1 million from the shift of 18 FTE positions from the General
Fund to the Environmental Regulatory Account and inflationary costs;
- $1.1 million related to nonpersonal service cost shifts from the
General Fund Operations Program to the Indirect Account;
- $500,000 in the Environmental Enforcement Conservation Fund
Account for technologies to increase law enforcement productivity.
This increase corresponds to a reduction in overtime law enforcement
personal service costs;
- $500,000 increase in the Operations Conservation Fund Account
related to the shift of General Fund lease costs;
- $400,000 increase from the shift of seven positions from the
General Fund to the Clean Water State Revolving Loan Fund (CWSRF) and
inflationary increases;
- $300,000 from the shift of four positions from the General Fund
to the Mined Land Reclamation account and inflationary increases;
- $300,000 related to a shift in General Fund nonpersonal service
costs to the Low Level Radioactive Waste Account as well as
inflationary increases. These costs will be funded from New York
State Energy Research and Development Authority (NYSERDA) payments
from monies rebated to New York from the Federal government;
- $300,000 increase in the Forest Program Natural Resources Account
for the full-year cost of seven positions associated with oil and
gas lease expansion;
- $200,000 increase in the Forest and Lands Recreation Account to
reflect a shift of non-personal service costs from the General Fund;
- $100,000 for the Conservationist Magazine associated with an
anticipated increase in the subscriber base;
- $4,400,000 in personal service and fringe benefit costs for
inflation and contractual services; and
- $100,000 decrease in Maintenance Undistributed funds in the
Forest and Lands Program Natural Resources Account for the U.S.
Forest Service Forest Inventory and Analysis Program.
The Executive also proposes a State Operations Special Revenue Fund Federal
appropriation of $86,928,000 in SFY 2003-04, a decrease of $6,441,000 or
6.9 percent from SFY 2002-03 levels. This decrease is attributed to the
following Federal environmental conservation grant changes:
- $5,100,000 decrease in Lands and Forests Grants;
- $3,800,000 decrease in Water Grants;
- $500,000 decrease in Air Resources Grants;
- $200,000 decrease in Solid Waste Grants;
- $200,000 decrease in Indirect Grants;
- $1,800,000 increase in Fish, Wildlife, and Marine Grants; and
- $1,600,000 increase in Conservation Spills Management Grants.
Conservation Fund
The Executive proposes a total of $47,005,000 from the main account of
the Conservation Fund in SFY 2003-04, an increase of $1,859,700 or 4
percent from SFY 2002-03 levels. This increase is attributable to fishing
and hunting license fee increases enacted as part of the SFY 2002-03 State
budget. This level maintains funding of $1,600,000 for costs associated
with the operation and maintenance of the Department's automated computer
license system, and $1,000,000 for the Return a Gift to Wildlife Program.
Other Conservation Fund appropriations include:
- $77,000 from the Guides License Account unchanged from SFY 2002-03
levels;
- $100,000 from the Habitat Account for the improvement and development
of public access for wildlife-related recreation and study, unchanged
from SFY 2002-03 levels;
- $210,000 from the Surf Clam/Ocean Quahog Account, unchanged from SFY
2002-03 levels;
- $206,000 from the Migratory Bird Account, unchanged from SFY 2002-03
levels; and
- $2,265,000 from the Marine Resources Account, reflecting a reduction
of $80,000 in funding for the Department's Lobster Trap Tag Program.
Environmental Fees
The Executive recommends several environmental fee increases and the
imposition of new fees projected to generate $44,850,000 in SFY 2003-04 and
$67,350,000 on a full annual basis. These proposals would:
- impose a new $2.50 per tire fee on all new tire sales. Revenue from
this fee would support a new Waste Tire Management Program (see Waste Tire
Management section below), generating $22,500,00 in SFY 2003-04 and
$45,000,000 in SFY 2004-05. This fee would provide General Fund relief
of $20,000,000 in SFY 2003-04 and $42,500,000 on a full annual basis;
- create a new Hazardous Waste Generator Surcharge, which would be
deposited into a new Remedial Program Transfer Fund (see Remediation
Programs section below). This new surcharge would range from $4,000
up to $360,000 per facility each year and is estimated to result in
additional annual revenues of $18,100,000;
- increase State Pollution Discharge Elimination (SPDES) fees on power
plants and industrial facilities. Current fees are $40,000 for power
plants and range from $375 to $37,500 for industrial facilities. Under
the Governor's proposal, fees would increase to $50,000 for power plants
and range from $475 to $47,500 for industrial facilities, resulting in
additional annual revenues of $1,500,000;
- double Petroleum Bulk Storage (PBS) facility registration fees. The
current range of $50 - $250 for five years would increase to $100 - $500,
resulting in additional annual revenues of $1,300,000. Currently PBS
facility registration fees are deposited into the Oil Spill Fund. The
Governor proposes transferring these funds to a new Remedial Program
Transfer Fund (see Remediation Programs section below).
- increase fees for underground and surface mining. Current fees range
from $1,200 to $2,000 per acre. Under the Governor's proposal this range
would be increased to $1,500 to $4,000 per acre, resulting in additional
annual revenues of $750,000;
- increase various user fees at DEC campgrounds and facilities. These
non-statutory fee increases are anticipated to result in additional annual
revenues of $500,000; and
- increase by over 50 percent existing oil, gas and solution mining
depth fees resulting in additional annual revenues of $200,000. Current
fees which are partially based upon the depth of the well drilled, range
from $125 to $2,625 per 500 feet.
Waste Tire Management Program
The Executive proposes Article VII legislation to create a new Waste Tire
Management Program. This Program would create a funding source and mechanism
for abating existing scrap tire stockpiles and develop in-State markets for
recycling stockpiled, and newly generated, waste tires.
This Program would be funded by a new fee of $2.50 per tire on new tire
sales. It is anticipated that this fee will result in revenues of
$22,500,000 in SFY 2003-04 and $45,000,000 on a full annual basis. The
Governor's proposal deposits these funds into the General Fund for budget
relief and transfers $2,500,000 to the Waste Tire Management and Recycling
Account for abatement of non-compliant waste tire stockpiles, market
development, demonstration projects, research, education, capital investments
and administrative costs.
Aid to Localities
The Executive proposes total local assistance funding of $461,000 in SFY
2003-04, a net decrease of $4,049,030 or 89.8 percent, below SFY 2002-03
levels. This net decrease is attributable to the following:
- an $11,000 appropriation for the Village of Pulaski to construct
sewer collection systems, reflecting a $4,700 increase above SFY
2002-03 levels;
- a $450,000 appropriation for Adirondack Landfills (Essex and
Hamilton Counties), reflecting no change from SFY 2002-03 levels;
- a $2,624,230 decrease related to the elimination of funding for
local assistance grants from the Community Projects Fund;
- a $1,057,000 decrease related to the transfer of funding for the
State's participation in various water commissions (Interstate
Environmental, Susquehanna River Basin, Ohio River Basin, New England
Interstate, Delaware River Basin, and Great Lakes) to the Environmental
Protection Fund (EPF);
- a $200,000 decrease related to the elimination of funding for
Cornell Community Integrated Pest Management; and
- a $172,500 decrease related to the elimination of funding for the
Town of North Elba/ORDA Promotion.
Capital Projects
The Executive recommends Capital Projects Fund appropriations totaling
$505,154,000 in SFY 2003-04, a $133,723,000 or 20.9 percent decrease from
SFY 2002-03. This net decrease is a result of the following:
- a $142,481,000 decrease in appropriations from the 1996 Clean
Water/Clean Air Bond Act. The unappropriated portion of the $1.75
billion authorized by the Bond Act was appropriated in SFY 2002-03.
An appropriation of $2,527,000 is recommended from the Bond Act
Implementation Fund to maintain support for staff;
- a $125,000,000 decrease in appropriations from the Environmental
Protection Fund. A total of $250,000,000 was appropriated in SFY
2002-03, including a $125,000,000 enhancement appropriation from SFY
2001-02 which was not included in the SFY 2001-02 enacted Budget;
- a $3,066,000 decrease in Capital Project Fund appropriations.
This funding includes capital support for various infrastructure
improvement projects at State campground facilities, education centers
and other sites, as well as various shore protection and flood
control projects;
- a $23,840,000 increase in Capital Projects Fund - Advance
appropriations. This is mainly attributable to a new advance
appropriation of $25,000,000 for remedial and monitoring work at
inactive hazardous waste disposal sites;
- a new $105,000,000 appropriation from the Governor's proposed
Remedial Program Transfer Fund (see Remediation Programs section
below);
- a $10,866,000 decrease in appropriations from the 1965 Pure
Waters (PWA) and 1972 Environmental Quality Bond Acts (EQBA). A
total of $20,025,000 was included in SFY 2002-03 for new and
redirected funds. The Governor proposes $9,159,000 in additional
PWA ($8,168,000) and EQBA (991,000) appropriations in SFY 2003-04
to support Long Island Sound Comprehensive Management Plan projects
and to implement wastewater treatment improvement projects in small
upstate communities;
- a $7,670,000 increase in Federal Capital Projects Fund
appropriations. Of this amount, $4,045,000 is attributable to an
increase in federal capitalization grants for the Clean Water State
Revolving Fund (CWSRF) from $146,825,000 to $150,870,000. The
remaining amount is attributed to $2,500,000 in new Federal Forest
Legacy Program grants and a $1,350,000 increase in Federal Marine
Resources funding, offset by a decrease of $225,000 in federal grants
for the Clean Vessel Act Pumpout Grant Program;
- a $809,000 increase in appropriations from the Capital Projects
Fund for the CWSRF State match. The Governor proposes a total of
$30,174,000 for this purpose, supported by bonds issued by the
Environmental Facilities Corporation (EFC); and
- $11,000,000 in new appropriation authority from the Capital
Projects Fund for operational services of the Department, supported
by EFC bonds.
Environmental Infrastructure Bonding
The Executive proposes to authorize the use of proceeds from bonds issued
by EFC to support $128,000,000 in DEC programs as follows:
- $10,000,000 for the Onondaga Lake Cleanup Project;
- $11,000,000 for DEC Capital Projects expenditures;
- $43,000,000 in projects supported by the Environmental
Protection Fund; and
- $64,000,000 for the identification, classification, investigation
and remediation of inactive hazardous waste disposal sites.
In order to accommodate these costs, the Governor proposes to increase EFC's
bond cap for environmental infrastructure projects from $135,000,000 to
$277,000,000. This authorization also permits EFC to issue bonds to support
the West Valley Demonstration Project. It is anticipated that EFC would
issue $181,000,000 in State appropriation-backed bonds in SFY 2003-04, which
also includes the SFY 2003-04 State match for the CWSRF and reappropriations
for environmental infrastructure projects authorized in SFY 2002-03.
Remediation Programs
The Executive proposes a new $138,000,000 Remedial Program Transfer Fund,
which would be supported as follows:
- $64,000,000 from State taxpayer supported bonds to be issued by the
Environmental Facilities Corporation;
- $5,000,000 from the General Fund;
- $13,000,000 in existing Superfund fees (Generator Fees and Special
Assessments);
- $5,100,000 in Superfund Cost Recoveries;
- $18,100,000 from a new Hazardous Waste Generator Surcharge; and
- $33,000,000 in Oil Spill Fund revenues, including $25,300,000 in
existing Petroleum Fees; $6,500,000 in Petroleum Cost Recoveries and
$1,300,000 from an increase in Petroleum Bulk Storage Fees.
Under this new Program, the statutory Inactive Hazardous Waste Disposal
Site (State Superfund) and Oil Spill Programs would be merged with the
Department of Environmental Conservation's administrative Voluntary Cleanup
Program (which would be codified), to create a single set of clean-up
standards. This would be accomplished through Article VII legislation
which, generally,
would:
- include "hazardous substances" within the definition of
"hazardous waste";
- create various liability releases and exemptions;
- establish new standards for level of clean-up;
- establish a new Brownfield Redevelopment Area Program; and
- provide funding sources and financial incentives.
The Executive proposes to transfer $33,000,000 from the new Transfer Fund to
support the Oil Spill Program (currently supported 100 percent by industry
sources), equivalent to the amount of revenues redirected from the Oil Spill
Fund to the new Transfer Fund. The remaining $105,000,000 would be utilized
to support the Governor's revised Superfund Program and Voluntary Cleanup
Program (VCP), as follows:
- $90,000,000 for Superfund projects;
- $8,000,000 to support the Voluntary Cleanup Program; and
- $7,000,000 for citizen participation and Brownfield Redevelopment Area
grants.
In addition to codification of the VCP, the Governor proposes amendments to the
Environmental Restoration Program of the 1996 Clean Water/Clean Air Bond Act
through Article VII legislation. Specifically the legislation would:
- eliminate the ownership before investigation requirement;
- increase the State share to 90 percent and 100 percent for
"off-site" contamination;
- allow municipalities to leverage Federal or other assistance to fund
their 10 percent share;
- permit municipal cost recovery prior to State reimbursement and
eliminate the profit-sharing requirement;
- allow the State not to recover its costs from responsible parties
whose liability arises solely from ownership of the property after
hazardous waste was disposed of at the property; and
- allow interim remedial measures to be used in non-emergency cases
without public participation and without requiring full cleanup of
contamination.
Environmental Protection Fund
The Executive recommends appropriations totaling $125,000,000 from the
Environmental Protection Fund (EPF) for SFY 2003-04. The Governor proposes
these appropriations as lump-sum amounts for each of the Accounts within the
EPF which, if enacted, would provide no statutory guidance on the allocation
of funds to be spent on each EPF category.
In addition, the Executive proposes numerous new project categories and
amendments to the EPF statute (see Article VII section below). The Executive's
proposed allocations for the EPF include $34,150,000 in cost shifts and the
addition of new purposes. The Executive proposes to support $43 million of
EPF disbursements in SFY 2003-04 with EFC bonds. In addition, the Executive
proposes to sweep $20,000,000 from the EPF for General Fund relief.
Although the appropriations are presented as lump-sums, the Governor
maintains that in SFY 2003-04, the EPF would be allocated as follows
(categories in italics are new programs and/or offloads):
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