S00322 Summary:

BILL NOS00322
 
SAME ASNo same as
 
SPONSORAVELLA
 
COSPNSRADDABBO
 
MLTSPNSR
 
Add S1285-s, Pub Auth L; amd SS56-0603, 56-0605 & 56-0607, En Con L
 
Establishes the diesel emissions program and the diesel emissions reduction revolving fund; supplements such fund through federal diesel emission reduction act funds in addition to other state funds.
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S00322 Actions:

BILL NOS00322
 
01/09/2013REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS
01/08/2014REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS
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S00322 Floor Votes:

There are no votes for this bill in this legislative session.
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S00322 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                           322
 
                               2013-2014 Regular Sessions
 
                    IN SENATE
 
                                       (Prefiled)
 
                                     January 9, 2013
                                       ___________
 
        Introduced  by  Sen.  AVELLA -- read twice and ordered printed, and when
          printed to be committed to the Committee on Corporations,  Authorities
          and Commissions
 
        AN ACT to amend the public authorities law and the environmental conser-

          vation  law,  in  relation  to establishing the state diesel emissions
          reduction revolving loan fund
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  The  public  authorities  law  is amended by adding a new
     2  section 1285-s to read as follows:
     3    § 1285-s. Diesel emissions reduction program. 1.  The  corporation  is
     4  authorized  to  undertake  a  program to provide financial assistance to
     5  state agencies and eligible recipients  to  encourage  and  support  the
     6  purchase  of  new  and  retrofitting  of existing heavy duty vehicles in
     7  accordance with the provisions of this section.
     8    2. As used in this section, the following  terms  have  the  following
     9  meanings:

    10    (a)  "Best  available retrofit technology" shall have the same meaning
    11  as such term is defined in section 19-0323 of the environmental  conser-
    12  vation law and regulations promulgated thereunder.
    13    (b)  "Commissioner"  shall  mean  the  commissioner  of  environmental
    14  conservation.
    15    (c) "Eligible project" shall mean  a  project  for  the  purchase  and
    16  installation  of best available retrofit technology for heavy duty vehi-
    17  cles, including the retrofit of vehicles required  pursuant  to  section
    18  19-0323  of  the environmental conservation law, and nonroad vehicles as
    19  defined by 42 USC section 7550.
    20    (d) "Eligible recipient" shall mean any person, municipality or  state

    21  agency  subject to section 19-0323 of the environmental conservation law
    22  and any person, municipality or state agency that is an eligible  entity
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02181-01-3

        S. 322                              2
 
     1  pursuant  to  the  Energy  Policy Act of 2005 Diesel Emissions Reduction
     2  Program.
     3    (e)  "Heavy  duty vehicle" or "vehicle" shall have the same meaning as
     4  such term is defined in section 19-0323 of the  environmental  conserva-
     5  tion law.
     6    (f)  "Retrofit"  shall  mean the addition of new or enhanced pollution

     7  control after treatment equipment to diesel engines, upgrading a  diesel
     8  engine  to  a  cleaner  configuration,  and  early  replacement of older
     9  engines with newer cleaner engines.
    10    3. (a) There is hereby established in the custody of the corporation a
    11  fund to be known as  the  diesel  emissions  reduction  revolving  fund.
    12  Moneys  in the diesel emissions reduction revolving fund shall be segre-
    13  gated from all other funds of or  in  the  custody  of  the  corporation
    14  subject  to  any  rights of holders of corporation bonds or notes issued
    15  for the purposes of this  section.    Moneys  in  the  diesel  emissions
    16  reduction  revolving  fund  shall  only  be  used in accordance with the

    17  provisions of this section provided, however, that an amount  of  up  to
    18  four  percent of the fund may be utilized annually by the corporation to
    19  pay for costs of administering the fund.
    20    (b) The fund shall consist of the following:
    21    (i) notwithstanding any law  to  the  contrary,  up  to  four  million
    22  dollars  from  state  fiscal year nineteen hundred ninety-seven--ninety-
    23  eight appropriations, or subsequent  reappropriation  for  such  project
    24  pursuant to section 56-0603 of the environmental conservation law, up to
    25  four million dollars from state fiscal year nineteen hundred ninety-sev-
    26  en--ninety-eight  appropriations, or subsequent reappropriation for such
    27  project pursuant to section 56-0605 of  the  environmental  conservation

    28  law,  up  to  two  million  dollars  from the state fiscal year nineteen
    29  hundred ninety-seven--ninety-eight appropriations, or  subsequent  reap-
    30  propriation for such project pursuant to section 56-0607 of the environ-
    31  mental conservation law;
    32    (ii)  all  moneys  appropriated for the payment of the costs of diesel
    33  emissions reduction activities and equipment pursuant to section one  of
    34  chapter  fifty-five of the laws of two thousand seven, as reappropriated
    35  by chapter fifty-five of the laws of two thousand nine, and  as  may  be
    36  subsequently reappropriated;
    37    (iii) all moneys appropriated by the state legislature for the purpose
    38  of  the  diesel  emissions  reduction revolving fund or otherwise trans-

    39  ferred by the state for deposit therein by the comptroller  as  required
    40  by law;
    41    (iv)  payments  of  principal and interest made by eligible recipients
    42  pursuant to loan or other agreements entered into pursuant  to  subdivi-
    43  sion six of this section; provided, however, if such loans were financed
    44  by  the  issuance  of bonds or notes of the corporation, deposit of such
    45  payments into the fund shall be subject to the rights of the holders  of
    46  such bonds or notes to receive such monies;
    47    (v) investment earnings on amounts in the fund;
    48    (vi) any other payments received from recipients pursuant to a loan or
    49  other  agreement  made  pursuant  to subdivision six of this section for

    50  costs of managing and administering the program; and
    51    (vii) the proceeds of bonds or notes issued  by  the  corporation  for
    52  purposes of providing financial assistance to eligible recipients.
    53    (c)  Additionally,  the  following  sources  may be deposited into the
    54  fund, subject to appropriation or transfer:
    55    (i) all or a portion of moneys paid  to  the  state  pursuant  to  any
    56  future  reauthorization,  reappropriation, extension or expansion of the

        S. 322                              3
 
     1  federal Diesel Emission Reduction Act or adoption of any federal act  of
     2  substantially similar purpose;
     3    (ii)  all  or  a  portion  of  moneys  paid  to  the state pursuant to

     4  subsection three of State and Tribal Assistance Grants included in Title
     5  VII of the American Recovery and Reinvestment Act of 2009; and
     6    (iii) any other moneys paid to the state for deposit in the fund.
     7    4. Moneys in the diesel emissions  reduction  revolving  fund  may  be
     8  invested  as  provided  in  subdivision  four  of section twelve hundred
     9  eighty-four and subdivision six of section twelve hundred  eighty-five-j
    10  of this title.
    11    5.  Moneys  of  the  fund  shall be available only for distribution to
    12  eligible projects pursuant to this section that are approved in  consul-
    13  tation with the department of environmental conservation. The department
    14  of  environmental  conservation  shall,  in consultation with the corpo-

    15  ration, develop guidance for selection of eligible projects, which shall
    16  establish eligibility criteria for distribution of moneys  contained  in
    17  the  fund consistent with the provisions of this section. Subject to any
    18  applicable federal  requirements,  priority  shall  be  given  to  those
    19  projects that will utilize best available retrofit technology and:
    20    (a) are subject to the requirements of section 19-0323 of the environ-
    21  mental conservation law;
    22    (b) maximize public health benefits;
    23    (c)  provide  the  most cost-effective expenditure of funds, including
    24  reductions in diesel emissions per dollar expended; and
    25    (d) serve areas in New York that are:

    26    (i) in nonattainment of the National Ambient Air Quality primary stan-
    27  dards established for particulate matter or ozone;
    28    (ii) environmental justice areas as designated by  the  department  of
    29  environmental conservation; or
    30    (iii)  impacted by higher levels of vehicle traffic; or industrial and
    31  commercial areas including but not limited  to  ports,  airports,  truck
    32  stops, rail yards, terminals and distribution centers.
    33    6.  Moneys  in the fund shall be applied by the corporation to provide
    34  financial assistance to eligible recipients for eligible projects and to
    35  provide for the administrative and management costs of the  program.  As
    36  used in this section "financial assistance to eligible recipients" means

    37  any one or more of the following:
    38    (a)  making  loans  to  eligible  recipients  for  eligible  projects,
    39  provided such loans (i) are made at market or below market  rates,  (ii)
    40  do not have a final maturity of more than the period of probable useful-
    41  ness as set forth in the local finance law, and (iii) have principal and
    42  interest payments which commence not later than one year after installa-
    43  tion of the eligible project;
    44    (b)  buying  or refinancing debt obligations of eligible recipients at
    45  market or below market rates;
    46    (c) guarantying, or purchasing insurance or other  credit  enhancement
    47  for eligible recipient obligations where such action would improve cred-

    48  it market access for or reduce interest rates on such eligible recipient
    49  obligations;
    50    (d) providing a source of revenue or security for payment of principal
    51  and interest on bonds or notes issued by the corporation if the proceeds
    52  of the sale of such bonds or notes will be deposited in the fund;
    53    (e)  providing interest rate subsidy allocations to subsidize loans to
    54  eligible recipients made from the proceeds of the corporation's bonds or
    55  notes;
    56    (f) providing grants and principal forgiveness;

        S. 322                              4
 
     1    (g) using investment earnings on moneys in the fund to  pay,  pursuant
     2  to  subdivision  seven of this section, the costs of the corporation and

     3  the department of environmental conservation of administering and manag-
     4  ing the program described in this section.
     5    7.  Notwithstanding  any provisions of law to the contrary, the corpo-
     6  ration shall distribute moneys contained in the fund as follows:
     7    (a) until March thirty-first, two thousand fourteen, twenty percent of
     8  the fund shall be used to provide  grants  to  state  agencies  for  the
     9  retrofitting of vehicles subject to section 19-0323 of the environmental
    10  conservation law; and
    11    (b)  the  remainder  of  the  fund  shall be used to provide financial
    12  assistance to eligible recipients for eligible projects  that  meet  the
    13  goal  of  emissions  reduction in accordance with the provisions of this

    14  section and in accordance with any applicable federal requirements.
    15    8. Eligible recipients may submit applications to the  corporation  in
    16  such  manner as the corporation directs. All applications shall include,
    17  at a minimum, the following information:
    18    (a) Any information required to  demonstrate  eligibility  to  receive
    19  federal assistance under any federal program listed in subdivision three
    20  of this section;
    21    (b)  Calculation  of  the extent to which installation of the proposed
    22  project will reduce diesel emissions;
    23    (c) The air quality designation of the area in which vehicles proposed
    24  to be retrofitted or replaced operate;
    25    (d) Extent to which the proposed project meets the  priority  criteria

    26  of subdivisions four and five of this section; and
    27    (e) Any other information that the corporation requires.
    28    9.  The  corporation,  in consultation with the department of environ-
    29  mental conservation, is authorized to:
    30    (a) consult with any other state agency or public authority which  the
    31  corporation  deems appropriate in the development of the diesel retrofit
    32  emissions reduction program developed pursuant to this section; and
    33    (b) prepare, in consultation with such agencies and  authorities,  and
    34  make available to the public, diesel emissions reduction program manuals
    35  and  brochures for the purpose of ensuring that the standards and crite-
    36  ria applicable to the program are available to persons who may  wish  to

    37  participate in the program, to facilitate the goals of the program.
    38    10.  In addition to the powers granted to the corporation elsewhere in
    39  this chapter, the corporation may make loans to eligible recipients  for
    40  purposes  of financing eligible projects for which the fund may be used,
    41  subject to the limitations of subdivision seven  of  this  section,  may
    42  accept the obligations of any municipality as security for the repayment
    43  of  a  loan  to  an  eligible  recipient, and may assign and pledge such
    44  eligible recipient obligations and loan agreements for  the  benefit  of
    45  the  holder of obligations of the corporation from the proceeds of which
    46  such loans are made. Loan proceeds  may  be  disbursed  to  an  eligible

    47  recipient  in accordance with such restrictions as may be imposed by the
    48  corporation in connection with such loan or obligations  of  the  corpo-
    49  ration  from  the  proceeds  of  which such loan is made. In the event a
    50  municipality shall fail to make any payment due the corporation pursuant
    51  to any loan agreement, financing agreement, or other obligation  of  the
    52  municipality  sold  to  the  corporation  or  issued as security for the
    53  undertaking of the municipality thereunder, the corporation shall certi-
    54  fy to the comptroller, and notify the chairman  of  the  senate  finance
    55  committee,  the  chairman  of the assembly ways and means committee, the
    56  director of the division of the budget and the  governing  body  of  the


        S. 322                              5
 
     1  municipality  that  such  municipality  has failed to make such payment.
     2  Such certificate shall be in such form  as  may  be  determined  by  the
     3  corporation  provided such certificate shall specify the exact amount of
     4  debt  service  and  surcharge,  if  applicable, required to satisfy such
     5  municipality's unpaid obligation. The comptroller, upon receipt of  such
     6  certificate  from  the  corporation,  is authorized to and shall, to the
     7  extent not  otherwise  prohibited  by  law  and  subject  to  any  other
     8  provision  of  law  providing for withholding of payments to the munici-
     9  pality which take precedence over this subdivision, withhold  from  such
    10  municipality  the next succeeding payments of state aid or local assist-

    11  ance otherwise payable to it to the extent necessary to meet the  certi-
    12  fied amount of debt service and surcharge, if applicable, due the corpo-
    13  ration  and  shall  immediately  pay  over  to the corporation as a debt
    14  service payment on behalf of such municipality the amount so withheld.
    15    11. No later than January thirty-first  of  each  calendar  year,  the
    16  corporation  shall submit to the governor, the legislature and the comp-
    17  troller a detailed report of expenditures of  the  fund.    Such  report
    18  shall include at a minimum:
    19    (a) An accounting of moneys paid into the fund from statutory sources;
    20    (b) An accounting of moneys expended for purposes of administering the
    21  fund;

    22    (c)  An  accounting  of  all  moneys  paid out of the fund to eligible
    23  projects, arranged by project, statutory priority level and area of  the
    24  state;
    25    (d)  An  estimation  of  the amount of diesel emissions reduced by the
    26  installation of eligible projects financed by the fund; and
    27    (e) Any discernable or estimated public health benefit  brought  about
    28  by these diesel emissions reductions.
    29    §  2.  Section 56-0603 of the environmental conservation law, as added
    30  by chapter 413 of the laws of 1996, is amended to read as follows:
    31  § 56-0603. State clean-fueled vehicle projects.
    32    1.  The office of general services is authorized, consistent with  the
    33  strategy  developed pursuant to subdivision three of section two hundred

    34  one-a of the executive law, to conduct a project to acquire clean-fueled
    35  vehicles [and to  develop  and  acquire  the  associated  infrastructure
    36  including  depot  construction],  and  the  New York state environmental
    37  facilities corporation is authorized,  consistent  with  section  twelve
    38  hundred  eighty-five-s  of  the  public  authorities  law, to distribute
    39  monies for the retrofitting of heavy duty diesel engine vehicles.
    40    2.  For the purposes of this section, the term "clean-fueled  vehicle"
    41  shall  mean  any motor vehicle as defined in section one hundred twenty-
    42  five of the vehicle and traffic law, that  uses  electricity,  including
    43  electricity  generated  from  solar  energy,  either stored or generated
    44  on-board, as its primary motive force, or that is fueled  by  compressed

    45  natural gas, propane, methanol, hydrogen or ethanol.
    46    §  3.  Subdivision 1 of section 56-0605 of the environmental conserva-
    47  tion law, as added by chapter 413 of the laws of  1996,  is  amended  to
    48  read as follows:
    49    1.  The  New  York  state energy research and development authority in
    50  cooperation with the department of transportation or the New York  state
    51  environmental facilities corporation is authorized to make state assist-
    52  ance  payments  to  "clean-fueled  buses  projects"  and  is authorized,
    53  consistent with section  twelve  hundred  eighty-five-s  of  the  public
    54  authorities law, to distribute monies for the retrofitting of heavy duty
    55  diesel engine vehicles.

        S. 322                              6
 

     1    §  4.  Section 56-0607 of the environmental conservation law, as added
     2  by chapter 413 of the laws of 1996, is amended to read as follows:
     3  § 56-0607. Other air quality projects.
     4    Of monies received by the state from the sale of bonds pursuant to the
     5  Clean  Water/Clean  Air  Bond  Act of 1996, up to twenty million dollars
     6  ($20,000,000) shall be  available  for  disbursements  for  air  quality
     7  projects pursuant to this section.
     8    The  commissioner is authorized in consultation with other state agen-
     9  cies as may be necessary, to make state assistance payments or to  enter
    10  into  contracts  in the name of the state for projects that will enhance
    11  the quality of the state's environment  and  the  state's  air  quality,
    12  including  cooperation  with the New York state environmental facilities

    13  corporation, to distribute monies for the  retrofitting  of  heavy  duty
    14  diesel  engine  vehicles, consistent with section twelve hundred eighty-
    15  five-s of the public authorities law.
    16    § 5. This act shall take effect immediately.
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