S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  6639

                            I N  S E N A T E

                              March 7, 2012
                               ___________

Introduced  by Sen. GRISANTI -- (at request of the Environmental Facili-
  ties Corporation) -- read twice and ordered printed, and when  printed
  to be committed to the Committee on Environmental Conservation

AN  ACT  to amend the environmental conservation law, in relation to the
  special powers of the New York state environmental  facilities  corpo-
  ration

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Paragraph a of subdivision 3  of  section  17-1909  of  the
environmental conservation law, as amended by chapter 279 of the laws of
2009, is amended to read as follows:
  a.  The corporation is authorized to promulgate regulations, developed
in consultation with the commissioner and the director of  the  division
of  the  budget,  for  the  purpose of carrying out its responsibilities
under this section, including establishing criteria  and  standards  for
determining  the amount of financial assistance to a municipality for an
eligible project. To the extent financial assistance to  a  municipality
for an eligible project is provided as a loan from the proceeds of bonds
or  notes  of the corporation, the amount of an allocation applicable to
the portion of such eligible project financed with such loan  shall  be,
subject to such maximum financial limitations as may otherwise be neces-
sary and prescribed by the commissioner and the director of the division
of  the  budget,  thirty-three  and  one-third  percent of the principal
amount of such loan outstanding at any time for such  eligible  project,
to  the  extent reasonably practicable, and subject to such deviation as
may be necessary, in connection with the administration  and  investment
of  moneys  in  the  fund,  unless  allocations in differing amounts are
necessary to preclude a determination by the commissioner or the  corpo-
ration  pursuant  to paragraph e of subdivision eight of this section or
unless an allocation in a differing amount is required for an innovative
technology demonstration project; provided, however, that in the case of
any municipality which has, during the period commencing on June  first,
nineteen  hundred  ninety-two  and  ending  on September thirtieth, [two
thousand twelve] TWO THOUSAND FIFTEEN, (i) submitted an application  for

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

                                                           LBD14245-01-2

S. 6639                             2

financial assistance in the form of such a loan for an eligible project,
which  application  has been accepted by the corporation, (ii) closed on
such loan, and (iii) commenced construction of  such  eligible  project,
the  allocation  applicable to the portion of such project financed with
such loan shall be, subject to  maximum  financial  limitations  as  may
otherwise be necessary and prescribed by the commissioner and the direc-
tor  of  the  division  of  the  budget,  fifty percent of the principal
balance outstanding on such loan at any time for such eligible  project,
to  the  extent reasonably practicable, and subject to such deviation as
may be necessary, in connection with the administration  and  investment
of  moneys  in  the  fund,  unless  allocations in differing amounts are
necessary to preclude a determination by the commissioner or the  corpo-
ration  pursuant  to paragraph e of subdivision eight of this section or
unless an allocation in a differing amount is required for an innovative
technology demonstration project.
  S 2. Paragraph e of subdivision 8 of section 17-1909 of  the  environ-
mental  conservation law, as amended by chapter 279 of the laws of 2009,
is amended to read as follows:
  e. Federal capitalization grants are provided in the form of a  letter
of credit or draws under capitalization grant agreements and the commis-
sioner  or  the  corporation determines, consistent with the purposes of
the fund, that providing  financial  assistance  from  the  proceeds  of
corporation bonds or notes would delay receipt of moneys from the feder-
al government under the Federal Water Pollution Control Act.
  The interest rate charged on any loan made by the corporation pursuant
to  this subdivision shall be no more than two-thirds of the market rate
of interest otherwise applicable thereto, provided, however, that in the
case of any municipality which has, during the period commencing on June
first, nineteen hundred ninety-two and ending  on  September  thirtieth,
[two thousand twelve] TWO THOUSAND FIFTEEN, (i) submitted an application
for  financial  assistance  in  the  form of a loan from the corporation
pursuant to this subdivision, for an eligible project, which application
has been accepted by the corporation, (ii)  closed  on  such  loan,  and
(iii) commenced construction of such eligible project, the interest rate
charged  on  such loan shall be no more than one-half of the market rate
otherwise applicable thereto.
  S 3. This act shall take effect immediately.