senate Bill S6639

Signed by Governor

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

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed by Governor
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actions

  • 07 / Mar / 2012
    • REFERRED TO ENVIRONMENTAL CONSERVATION
  • 27 / Mar / 2012
    • 1ST REPORT CAL.463
  • 28 / Mar / 2012
    • 2ND REPORT CAL.
  • 29 / Mar / 2012
    • ADVANCED TO THIRD READING
  • 19 / Apr / 2012
    • PASSED SENATE
  • 19 / Apr / 2012
    • DELIVERED TO ASSEMBLY
  • 19 / Apr / 2012
    • REFERRED TO ENVIRONMENTAL CONSERVATION
  • 07 / May / 2012
    • SUBSTITUTED FOR A9786
  • 07 / May / 2012
    • ORDERED TO THIRD READING CAL.532
  • 07 / May / 2012
    • PASSED ASSEMBLY
  • 07 / May / 2012
    • RETURNED TO SENATE
  • 21 / May / 2012
    • DELIVERED TO GOVERNOR
  • 31 / May / 2012
    • SIGNED CHAP.65

Summary

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

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Bill Details

See Assembly Version of this Bill:
A9786
Versions:
S6639
Legislative Cycle:
2011-2012
Law Section:
Environmental Conservation Law
Laws Affected:
Amd §17-1909, En Con L

Sponsor 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.

view bill text
                    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.

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