Bill S6639-2011

Relates to special powers of the New York State environmental facilities corporation

Relates to special powers of the New York State environmental facilities corporation.

Details

Actions

  • May 31, 2012: SIGNED CHAP.65
  • May 21, 2012: DELIVERED TO GOVERNOR
  • May 7, 2012: returned to senate
  • May 7, 2012: passed assembly
  • May 7, 2012: ordered to third reading cal.532
  • May 7, 2012: substituted for a9786
  • Apr 19, 2012: referred to environmental conservation
  • Apr 19, 2012: DELIVERED TO ASSEMBLY
  • Apr 19, 2012: PASSED SENATE
  • Mar 29, 2012: ADVANCED TO THIRD READING
  • Mar 28, 2012: 2ND REPORT CAL.
  • Mar 27, 2012: 1ST REPORT CAL.463
  • Mar 7, 2012: REFERRED TO ENVIRONMENTAL CONSERVATION

Meetings

Votes

VOTE: COMMITTEE VOTE: - Environmental Conservation - Mar 27, 2012
Ayes (13): Grisanti, Johnson, LaValle, Little, Marcellino, Maziarz, O'Mara, Young, Avella, Espaillat, Perkins, Serrano, Stewart-Cousins
Excused (1): Oppenheimer

Memo

BILL NUMBER:S6639

TITLE OF BILL:

An act to amend the environmental conservation law, in relation to the special powers of the New York state environmental facilities corporation

PURPOSE OF THE BILL:

The bill would extend the State Water Pollution Control Revolving Fund ("Fund" or "CWSRF") fifty percent subsidy through September 30, 2015.

SUMMARY OF PROVISIONS:

Section 1 of the bill would amend Environmental Conservation Law ("ECL") § 17-1909, subd. 3 to extend from September 30, 2012 through September 30, 2015, the provisions of law applicable to the fifty percent subsidy available to recipients of CWSRF financings.

Section 2 of the bill would amend ECL § 17-1909, subd. 8 to make changes in the law to conform to the amendment made by section 1 of the bill.

Section 3 of the bill would make the bill effective immediately upon enactment.

EXISTING LAW:

The CWSRF is funded through Federal capitalization grants pursuant to the Federal Water Quality Act of 1987, and requires State matching funds equal to twenty percent of the Federal capitalization grants. The Environmental Facilities Corporation ("EFC"), which implements the Fund, may allocate a portion of the Federal capitalization grants and State matching component to provide interest rate subsidies to recipients.

Currently, during the period commencing June 1, 1992 and, as extended, ending September 30, 2012, recipients qualify for a fifty percent subsidy in connection with the financing if they (i) submit an application for a CWSRF financing, which application is accepted by EFC; (ii) close on the CWSRF financing; and (iii) commence construction of the project related to the financing. If this enhanced 50% interest rate subsidy is not extended, the statutory authority to provide an interest rate subsidy will revert to the existing one-third interest rate subsidy, effective October 1, 2012.

PRIOR LEGISLATIVE HISTORY:

The fifty percent subsidy was added by Chapter 645 of the Laws of 1992, and has been extended since that time as follows: L.1995, c.231; L.1996, c.447; L. 1998, c.414; L.2000, c.135; L.2003, c.148; L.2006, c.533; L.2009, c.279.

STATEMENT IN SUPPORT:

EFC, together with the NYS Department of Environmental Conservation, administers the Clean Water State Revolving Fund, created by Chapter 565 of the Laws of 1989. The CWSRF was established to provide financial assistance to recipients, including municipalities, to acquire, construct and upgrade eligible water pollution control projects. In 1992, the CWSRF subsidy level was increased to fifty percent for qualified recipients. The increased subsidy, together with EFC's interest-free short-term financing program, stimulated communities to begin their Clean Water projects and, in particular, upgrades of sewage treatment facilities. Additionally, this two-tiered program of interest-free short-term financings and a fifty percent long-term subsidy created jobs and provided an environmental benefit.

BUDGET IMPLICATIONS:

The State match is a condition to the receipt of any Federal capitalization grant and has no impact on the State budget.

LOCAL IMPACT:

EFC's ability to offer subsidized financings to municipalities at a fifty percent subsidy level assists communities in financing environmentally significant projects in the most cost-effective manner.

EFFECTIVE DATE:

The bill would take effect immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 6639 IN SENATE 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
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.

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