S T A T E   O F   N E W   Y O R K
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                                  11618

                          I N  A S S E M B L Y

                              July 6, 2010
                               ___________

Introduced  by COMMITTEE ON RULES -- (at request of M. of A. Brodsky) --
  read once and referred to the Committee on Environmental Conservation

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:

  Section 1. The public authorities law  is  amended  by  adding  a  new
section 1285-s to read as follows:
  S  1285-S.  DIESEL  EMISSIONS REDUCTION PROGRAM. 1. THE CORPORATION IS
AUTHORIZED TO UNDERTAKE A PROGRAM TO  PROVIDE  FINANCIAL  ASSISTANCE  TO
STATE  AGENCIES  AND  ELIGIBLE  RECIPIENTS  TO ENCOURAGE AND SUPPORT THE
PURCHASE OF NEW AND RETROFITTING OF  EXISTING  HEAVY  DUTY  VEHICLES  IN
ACCORDANCE WITH THE PROVISIONS OF THIS SECTION.
  2.  AS  USED  IN  THIS SECTION, THE FOLLOWING TERMS HAVE THE FOLLOWING
MEANINGS:
  (A) "BEST AVAILABLE RETROFIT TECHNOLOGY" SHALL HAVE THE  SAME  MEANING
AS  SUCH TERM IS DEFINED IN SECTION 19-0323 OF THE ENVIRONMENTAL CONSER-
VATION LAW AND REGULATIONS PROMULGATED THEREUNDER.
  (B)  "COMMISSIONER"  SHALL  MEAN  THE  COMMISSIONER  OF  ENVIRONMENTAL
CONSERVATION.
  (C)  "ELIGIBLE  PROJECT"  SHALL  MEAN  A  PROJECT FOR THE PURCHASE AND
INSTALLATION OF BEST AVAILABLE RETROFIT TECHNOLOGY FOR HEAVY DUTY  VEHI-
CLES,  INCLUDING  THE  RETROFIT OF VEHICLES REQUIRED PURSUANT TO SECTION
19-0323 OF THE ENVIRONMENTAL CONSERVATION LAW, AND NONROAD  VEHICLES  AS
DEFINED BY 42 USC SECTION 7550.
  (D)  "ELIGIBLE RECIPIENT" SHALL MEAN ANY PERSON, MUNICIPALITY OR STATE
AGENCY SUBJECT TO SECTION 19-0323 OF THE ENVIRONMENTAL CONSERVATION  LAW
AND  ANY PERSON, MUNICIPALITY OR STATE AGENCY THAT IS AN ELIGIBLE ENTITY
PURSUANT TO THE ENERGY POLICY ACT OF  2005  DIESEL  EMISSIONS  REDUCTION
PROGRAM.
  (E)  "HEAVY  DUTY VEHICLE" OR "VEHICLE" SHALL HAVE THE SAME MEANING AS
SUCH TERM IS DEFINED IN SECTION 19-0323 OF THE  ENVIRONMENTAL  CONSERVA-
TION LAW.

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

                                                           LBD11624-05-0

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  (F)  "RETROFIT"  SHALL  MEAN THE ADDITION OF NEW OR ENHANCED POLLUTION
CONTROL AFTER TREATMENT EQUIPMENT TO DIESEL ENGINES, UPGRADING A  DIESEL
ENGINE  TO  A  CLEANER  CONFIGURATION,  AND  EARLY  REPLACEMENT OF OLDER
ENGINES WITH NEWER CLEANER ENGINES.
  3. (A) THERE IS HEREBY ESTABLISHED IN THE CUSTODY OF THE CORPORATION A
FUND  TO  BE  KNOWN  AS  THE  DIESEL EMISSIONS REDUCTION REVOLVING FUND.
MONEYS IN THE DIESEL EMISSIONS REDUCTION REVOLVING FUND SHALL BE  SEGRE-
GATED  FROM  ALL  OTHER  FUNDS  OF  OR IN THE CUSTODY OF THE CORPORATION
SUBJECT TO ANY RIGHTS OF HOLDERS OF CORPORATION BONDS  OR  NOTES  ISSUED
FOR  THE  PURPOSES  OF  THIS  SECTION.    MONEYS IN THE DIESEL EMISSIONS
REDUCTION REVOLVING FUND SHALL ONLY  BE  USED  IN  ACCORDANCE  WITH  THE
PROVISIONS  OF  THIS  SECTION PROVIDED, HOWEVER, THAT AN AMOUNT OF UP TO
FOUR PERCENT OF THE FUND MAY BE UTILIZED ANNUALLY BY THE CORPORATION  TO
PAY FOR COSTS OF ADMINISTERING THE FUND.
  (B) THE FUND SHALL CONSIST OF THE FOLLOWING:
  (I)  NOTWITHSTANDING  ANY  LAW  TO  THE  CONTRARY,  UP TO FOUR MILLION
DOLLARS     FROM     STATE     FISCAL     YEAR     NINETEEN      HUNDRED
NINETY-SEVEN--NINETY-EIGHT APPROPRIATIONS, OR SUBSEQUENT REAPPROPRIATION
FOR  SUCH  PROJECT  PURSUANT  TO  SECTION  56-0603  OF THE ENVIRONMENTAL
CONSERVATION LAW, UP TO FOUR MILLION  DOLLARS  FROM  STATE  FISCAL  YEAR
NINETEEN  HUNDRED  NINETY-SEVEN--NINETY-EIGHT  APPROPRIATIONS, OR SUBSE-
QUENT REAPPROPRIATION FOR SUCH PROJECT PURSUANT TO  SECTION  56-0605  OF
THE  ENVIRONMENTAL  CONSERVATION LAW, UP TO TWO MILLION DOLLARS FROM THE
STATE FISCAL YEAR NINETEEN HUNDRED NINETY-SEVEN--NINETY-EIGHT  APPROPRI-
ATIONS,  OR  SUBSEQUENT  REAPPROPRIATION  FOR  SUCH  PROJECT PURSUANT TO
SECTION 56-0607 OF THE ENVIRONMENTAL CONSERVATION LAW;
  (II) ALL MONEYS APPROPRIATED FOR THE PAYMENT OF THE  COSTS  OF  DIESEL
EMISSIONS  REDUCTION ACTIVITIES AND EQUIPMENT PURSUANT TO SECTION ONE OF
CHAPTER FIFTY-FIVE OF THE LAWS OF TWO THOUSAND SEVEN, AS  REAPPROPRIATED
BY  CHAPTER  FIFTY-FIVE  OF THE LAWS OF TWO THOUSAND NINE, AND AS MAY BE
SUBSEQUENTLY REAPPROPRIATED;
  (III) ALL MONEYS APPROPRIATED BY THE STATE LEGISLATURE FOR THE PURPOSE
OF THE DIESEL EMISSIONS REDUCTION REVOLVING  FUND  OR  OTHERWISE  TRANS-
FERRED  BY  THE STATE FOR DEPOSIT THEREIN BY THE COMPTROLLER AS REQUIRED
BY LAW;
  (IV) PAYMENTS OF PRINCIPAL AND INTEREST MADE  BY  ELIGIBLE  RECIPIENTS
PURSUANT  TO  LOAN OR OTHER AGREEMENTS ENTERED INTO PURSUANT TO SUBDIVI-
SION SIX OF THIS SECTION; PROVIDED, HOWEVER, IF SUCH LOANS WERE FINANCED
BY THE ISSUANCE OF BONDS OR NOTES OF THE CORPORATION,  DEPOSIT  OF  SUCH
PAYMENTS  INTO THE FUND SHALL BE SUBJECT TO THE RIGHTS OF THE HOLDERS OF
SUCH BONDS OR NOTES TO RECEIVE SUCH MONIES;
  (V) INVESTMENT EARNINGS ON AMOUNTS IN THE FUND;
  (VI) ANY OTHER PAYMENTS RECEIVED FROM RECIPIENTS PURSUANT TO A LOAN OR
OTHER AGREEMENT MADE PURSUANT TO SUBDIVISION SIX  OF  THIS  SECTION  FOR
COSTS OF MANAGING AND ADMINISTERING THE PROGRAM; AND
  (VII)  THE  PROCEEDS  OF  BONDS OR NOTES ISSUED BY THE CORPORATION FOR
PURPOSES OF PROVIDING FINANCIAL ASSISTANCE TO ELIGIBLE RECIPIENTS.
  (C) ADDITIONALLY, THE FOLLOWING SOURCES  MAY  BE  DEPOSITED  INTO  THE
FUND, SUBJECT TO APPROPRIATION OR TRANSFER:
  (I)  ALL  OR  A  PORTION  OF  MONEYS PAID TO THE STATE PURSUANT TO ANY
FUTURE REAUTHORIZATION, REAPPROPRIATION, EXTENSION OR EXPANSION  OF  THE
FEDERAL  DIESEL EMISSION REDUCTION ACT OR ADOPTION OF ANY FEDERAL ACT OF
SUBSTANTIALLY SIMILAR PURPOSE;
  (II) ALL OR A  PORTION  OF  MONEYS  PAID  TO  THE  STATE  PURSUANT  TO
SUBSECTION THREE OF STATE AND TRIBAL ASSISTANCE GRANTS INCLUDED IN TITLE
VII OF THE AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009; AND

A. 11618                            3

  (III) ANY OTHER MONEYS PAID TO THE STATE FOR DEPOSIT IN THE FUND.
  4.  MONEYS  IN  THE  DIESEL  EMISSIONS REDUCTION REVOLVING FUND MAY BE
INVESTED AS PROVIDED IN  SUBDIVISION  FOUR  OF  SECTION  TWELVE  HUNDRED
EIGHTY-FOUR  AND SUBDIVISION SIX OF SECTION TWELVE HUNDRED EIGHTY-FIVE-J
OF THIS TITLE.
  5. MONEYS OF THE FUND SHALL BE  AVAILABLE  ONLY  FOR  DISTRIBUTION  TO
ELIGIBLE  PROJECTS PURSUANT TO THIS SECTION THAT ARE APPROVED IN CONSUL-
TATION WITH THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION. THE DEPARTMENT
OF ENVIRONMENTAL CONSERVATION SHALL, IN  CONSULTATION  WITH  THE  CORPO-
RATION, DEVELOP GUIDANCE FOR SELECTION OF ELIGIBLE PROJECTS, WHICH SHALL
ESTABLISH  ELIGIBILITY  CRITERIA FOR DISTRIBUTION OF MONEYS CONTAINED IN
THE FUND CONSISTENT WITH THE PROVISIONS OF THIS SECTION. SUBJECT TO  ANY
APPLICABLE  FEDERAL  REQUIREMENTS,  PRIORITY  SHALL  BE  GIVEN  TO THOSE
PROJECTS THAT WILL UTILIZE BEST AVAILABLE RETROFIT TECHNOLOGY AND:
  (A) ARE SUBJECT TO THE REQUIREMENTS OF SECTION 19-0323 OF THE ENVIRON-
MENTAL CONSERVATION LAW;
  (B) MAXIMIZE PUBLIC HEALTH BENEFITS;
  (C) PROVIDE THE MOST COST-EFFECTIVE EXPENDITURE  OF  FUNDS,  INCLUDING
REDUCTIONS IN DIESEL EMISSIONS PER DOLLAR EXPENDED; AND
  (D) SERVE AREAS IN NEW YORK THAT ARE:
  (I)  IN  NON  ATTAINMENT  OF  THE NATIONAL AMBIENT AIR QUALITY PRIMARY
STANDARDS ESTABLISHED FOR PARTICULATE MATTER OR OZONE;
  (II) ENVIRONMENTAL JUSTICE AREAS AS DESIGNATED BY  THE  DEPARTMENT  OF
ENVIRONMENTAL CONSERVATION; OR
  (III)  IMPACTED BY HIGHER LEVELS OF VEHICLE TRAFFIC; OR INDUSTRIAL AND
COMMERCIAL AREAS INCLUDING BUT NOT LIMITED  TO  PORTS,  AIRPORTS,  TRUCK
STOPS, RAIL YARDS, TERMINALS AND DISTRIBUTION CENTERS.
  6.  MONEYS  IN THE FUND SHALL BE APPLIED BY THE CORPORATION TO PROVIDE
FINANCIAL ASSISTANCE TO ELIGIBLE RECIPIENTS FOR ELIGIBLE PROJECTS AND TO
PROVIDE FOR THE ADMINISTRATIVE AND MANAGEMENT COSTS OF THE  PROGRAM.  AS
USED IN THIS SECTION "FINANCIAL ASSISTANCE TO ELIGIBLE RECIPIENTS" MEANS
ANY ONE OR MORE OF THE FOLLOWING:
  (A)  MAKING  LOANS  TO  ELIGIBLE  RECIPIENTS  FOR  ELIGIBLE  PROJECTS,
PROVIDED SUCH LOANS (I) ARE MADE AT MARKET OR BELOW MARKET  RATES,  (II)
DO NOT HAVE A FINAL MATURITY OF MORE THAN THE PERIOD OF PROBABLE USEFUL-
NESS AS SET FORTH IN THE LOCAL FINANCE LAW, AND (III) HAVE PRINCIPAL AND
INTEREST PAYMENTS WHICH COMMENCE NOT LATER THAN ONE YEAR AFTER INSTALLA-
TION OF THE ELIGIBLE PROJECT;
  (B)  BUYING  OR REFINANCING DEBT OBLIGATIONS OF ELIGIBLE RECIPIENTS AT
MARKET OR BELOW MARKET RATES;
  (C) GUARANTYING, OR PURCHASING INSURANCE OR OTHER  CREDIT  ENHANCEMENT
FOR ELIGIBLE RECIPIENT OBLIGATIONS WHERE SUCH ACTION WOULD IMPROVE CRED-
IT MARKET ACCESS FOR OR REDUCE INTEREST RATES ON SUCH ELIGIBLE RECIPIENT
OBLIGATIONS;
  (D) PROVIDING A SOURCE OF REVENUE OR SECURITY FOR PAYMENT OF PRINCIPAL
AND INTEREST ON BONDS OR NOTES ISSUED BY THE CORPORATION IF THE PROCEEDS
OF THE SALE OF SUCH BONDS OR NOTES WILL BE DEPOSITED IN THE FUND;
  (E)  PROVIDING INTEREST RATE SUBSIDY ALLOCATIONS TO SUBSIDIZE LOANS TO
ELIGIBLE RECIPIENTS MADE FROM THE PROCEEDS OF THE CORPORATION'S BONDS OR
NOTES;
  (F) PROVIDING GRANTS AND PRINCIPAL FORGIVENESS;
  (G) USING INVESTMENT EARNINGS ON MONEYS IN THE FUND TO  PAY,  PURSUANT
TO  SUBDIVISION  SEVEN OF THIS SECTION, THE COSTS OF THE CORPORATION AND
THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION OF ADMINISTERING AND MANAG-
ING THE PROGRAM DESCRIBED IN THIS SECTION.

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  7. (A) NOTWITHSTANDING ANY PROVISIONS OF  LAW  TO  THE  CONTRARY,  THE
CORPORATION SHALL DISTRIBUTE MONEYS CONTAINED IN THE FUND AS FOLLOWS:
  (I)  UNTIL  MARCH THIRTY-FIRST, TWO THOUSAND ELEVEN, TWENTY PERCENT OF
THE FUND SHALL BE USED TO PROVIDE  GRANTS  TO  STATE  AGENCIES  FOR  THE
RETROFITTING OF VEHICLES SUBJECT TO SECTION 19-0323 OF THE ENVIRONMENTAL
CONSERVATION LAW;
  (II)  THE  REMAINDER  OF  THE  FUND SHALL BE USED TO PROVIDE FINANCIAL
ASSISTANCE TO ELIGIBLE RECIPIENTS FOR ELIGIBLE PROJECTS  THAT  MEET  THE
GOAL  OF  EMISSIONS  REDUCTION IN ACCORDANCE WITH THE PROVISIONS OF THIS
SECTION AND IN ACCORDANCE WITH ANY APPLICABLE FEDERAL REQUIREMENTS.
  8. ELIGIBLE RECIPIENTS MAY SUBMIT APPLICATIONS TO THE  CORPORATION  IN
SUCH  MANNER AS THE CORPORATION DIRECTS. ALL APPLICATIONS SHALL INCLUDE,
AT A MINIMUM, THE FOLLOWING INFORMATION:
  (A) ANY INFORMATION REQUIRED TO  DEMONSTRATE  ELIGIBILITY  TO  RECEIVE
FEDERAL ASSISTANCE UNDER ANY FEDERAL PROGRAM LISTED IN SUBDIVISION THREE
OF THIS SECTION;
  (B)  CALCULATION  OF  THE EXTENT TO WHICH INSTALLATION OF THE PROPOSED
PROJECT WILL REDUCE DIESEL EMISSIONS;
  (C) THE AIR QUALITY DESIGNATION OF THE AREA IN WHICH VEHICLES PROPOSED
TO BE RETROFITTED OR REPLACED OPERATE;
  (D) EXTENT TO WHICH THE PROPOSED PROJECT MEETS THE  PRIORITY  CRITERIA
OF SUBDIVISIONS FOUR AND FIVE OF THIS SECTION; AND
  (E) ANY OTHER INFORMATION THAT THE CORPORATION REQUIRES.
  9.  THE  CORPORATION,  IN CONSULTATION WITH THE DEPARTMENT OF ENVIRON-
MENTAL CONSERVATION, IS AUTHORIZED TO:
  (A) CONSULT WITH ANY OTHER STATE AGENCY OR PUBLIC AUTHORITY WHICH  THE
CORPORATION  DEEMS APPROPRIATE IN THE DEVELOPMENT OF THE DIESEL RETROFIT
EMISSIONS REDUCTION PROGRAM DEVELOPED PURSUANT TO THIS SECTION; AND
  (B) PREPARE, IN CONSULTATION WITH SUCH AGENCIES AND  AUTHORITIES,  AND
MAKE AVAILABLE TO THE PUBLIC, DIESEL EMISSIONS REDUCTION PROGRAM MANUALS
AND  BROCHURES FOR THE PURPOSE OF ENSURING THAT THE STANDARDS AND CRITE-
RIA APPLICABLE TO THE PROGRAM ARE AVAILABLE TO PERSONS WHO MAY  WISH  TO
PARTICIPATE IN THE PROGRAM, TO FACILITATE THE GOALS OF THE PROGRAM.
  10.  IN ADDITION TO THE POWERS GRANTED TO THE CORPORATION ELSEWHERE IN
THIS CHAPTER, THE CORPORATION MAY MAKE LOANS TO ELIGIBLE RECIPIENTS  FOR
PURPOSES  OF FINANCING ELIGIBLE PROJECTS FOR WHICH THE FUND MAY BE USED,
SUBJECT TO THE LIMITATIONS OF SUBDIVISION SEVEN  OF  THIS  SECTION,  MAY
ACCEPT THE OBLIGATIONS OF ANY MUNICIPALITY AS SECURITY FOR THE REPAYMENT
OF  A  LOAN  TO  AN  ELIGIBLE  RECIPIENT, AND MAY ASSIGN AND PLEDGE SUCH
ELIGIBLE RECIPIENT OBLIGATIONS AND LOAN AGREEMENTS FOR  THE  BENEFIT  OF
THE  HOLDER OF OBLIGATIONS OF THE CORPORATION FROM THE PROCEEDS OF WHICH
SUCH LOANS ARE MADE. LOAN PROCEEDS  MAY  BE  DISBURSED  TO  AN  ELIGIBLE
RECIPIENT  IN ACCORDANCE WITH SUCH RESTRICTIONS AS MAY BE IMPOSED BY THE
CORPORATION IN CONNECTION WITH SUCH LOAN OR OBLIGATIONS  OF  THE  CORPO-
RATION  FROM  THE  PROCEEDS  OF  WHICH SUCH LOAN IS MADE. IN THE EVENT A
MUNICIPALITY SHALL FAIL TO MAKE ANY PAYMENT DUE THE CORPORATION PURSUANT
TO ANY LOAN AGREEMENT, FINANCING AGREEMENT, OR OTHER OBLIGATION  OF  THE
MUNICIPALITY  SOLD  TO  THE  CORPORATION  OR  ISSUED AS SECURITY FOR THE
UNDERTAKING OF THE MUNICIPALITY THEREUNDER, THE CORPORATION SHALL CERTI-
FY TO THE COMPTROLLER, AND NOTIFY THE CHAIRMAN  OF  THE  SENATE  FINANCE
COMMITTEE,  THE  CHAIRMAN  OF THE ASSEMBLY WAYS AND MEANS COMMITTEE, THE
DIRECTOR OF THE DIVISION OF THE BUDGET AND THE  GOVERNING  BODY  OF  THE
MUNICIPALITY  THAT  SUCH  MUNICIPALITY  HAS FAILED TO MAKE SUCH PAYMENT.
SUCH CERTIFICATE SHALL BE IN SUCH FORM  AS  MAY  BE  DETERMINED  BY  THE
CORPORATION  PROVIDED SUCH CERTIFICATE SHALL SPECIFY THE EXACT AMOUNT OF
DEBT SERVICE AND SURCHARGE, IF  APPLICABLE,  REQUIRED  TO  SATISFY  SUCH

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MUNICIPALITY'S  UNPAID OBLIGATION. THE COMPTROLLER, UPON RECEIPT OF SUCH
CERTIFICATE FROM THE CORPORATION, IS AUTHORIZED TO  AND  SHALL,  TO  THE
EXTENT  NOT  OTHERWISE  PROHIBITED  BY  LAW  AND  SUBJECT  TO  ANY OTHER
PROVISION  OF  LAW  PROVIDING FOR WITHHOLDING OF PAYMENTS TO THE MUNICI-
PALITY WHICH TAKE PRECEDENCE OVER THIS SUBDIVISION, WITHHOLD  FROM  SUCH
MUNICIPALITY  THE NEXT SUCCEEDING PAYMENTS OF STATE AID OR LOCAL ASSIST-
ANCE OTHERWISE PAYABLE TO IT TO THE EXTENT NECESSARY TO MEET THE  CERTI-
FIED AMOUNT OF DEBT SERVICE AND SURCHARGE, IF APPLICABLE, DUE THE CORPO-
RATION  AND  SHALL  IMMEDIATELY  PAY  OVER  TO THE CORPORATION AS A DEBT
SERVICE PAYMENT ON BEHALF OF SUCH MUNICIPALITY THE AMOUNT SO WITHHELD.
  11. NO LATER THAN JANUARY THIRTY-FIRST  OF  EACH  CALENDAR  YEAR,  THE
CORPORATION  SHALL SUBMIT TO THE GOVERNOR, THE LEGISLATURE AND THE COMP-
TROLLER A DETAILED REPORT OF EXPENDITURES OF  THE  FUND.    SUCH  REPORT
SHALL INCLUDE AT A MINIMUM:
  (A) AN ACCOUNTING OF MONEYS PAID INTO THE FUND FROM STATUTORY SOURCES;
  (B) AN ACCOUNTING OF MONEYS EXPENDED FOR PURPOSES OF ADMINISTERING THE
FUND;
  (C)  AN  ACCOUNTING  OF  ALL  MONEYS  PAID OUT OF THE FUND TO ELIGIBLE
PROJECTS, ARRANGED BY PROJECT, STATUTORY PRIORITY LEVEL AND AREA OF  THE
STATE;
  (D)  AN  ESTIMATION  OF  THE AMOUNT OF DIESEL EMISSIONS REDUCED BY THE
INSTALLATION OF ELIGIBLE PROJECTS FINANCED BY THE FUND; AND
  (E) ANY DISCERNABLE OR ESTIMATED PUBLIC HEALTH BENEFIT  BROUGHT  ABOUT
BY THESE DIESEL EMISSIONS REDUCTIONS.
  S  2.  Section 56-0603 of the environmental conservation law, as added
by chapter 413 of the laws of 1996, is amended to read as follows:
S 56-0603. State clean-fueled vehicle projects.
  1.  The office of general services is authorized, consistent with  the
strategy  developed pursuant to subdivision three of section two hundred
one-a of the executive law, to conduct a project to acquire clean-fueled
vehicles [and to  develop  and  acquire  the  associated  infrastructure
including  depot  construction],  AND  THE  NEW YORK STATE ENVIRONMENTAL
FACILITIES CORPORATION IS AUTHORIZED,  CONSISTENT  WITH  SECTION  TWELVE
HUNDRED  EIGHTY-FIVE-S  OF  THE  PUBLIC  AUTHORITIES  LAW, TO DISTRIBUTE
MONIES FOR THE RETROFITTING OF HEAVY DUTY DIESEL ENGINE VEHICLES.
  2.  For the purposes of this section, the term "clean-fueled  vehicle"
shall  mean  any motor vehicle as defined in section one hundred twenty-
five of the vehicle and traffic law, that  uses  electricity,  including
electricity  generated  from  solar  energy,  either stored or generated
on-board, as its primary motive force, or that is fueled  by  compressed
natural gas, propane, methanol, hydrogen or ethanol.
  S  3.  Subdivision 1 of section 56-0605 of the environmental conserva-
tion law, as added by chapter 413 of the laws of  1996,  is  amended  to
read as follows:
  1.  The  New  York  state energy research and development authority in
cooperation with the department of transportation OR THE NEW YORK  STATE
ENVIRONMENTAL FACILITIES CORPORATION is authorized to make state assist-
ance  payments  to  "clean-fueled  buses  projects"  AND  IS AUTHORIZED,
CONSISTENT WITH SECTION  TWELVE  HUNDRED  EIGHTY-FIVE-S  OF  THE  PUBLIC
AUTHORITIES LAW, TO DISTRIBUTE MONIES FOR THE RETROFITTING OF HEAVY DUTY
DIESEL ENGINE VEHICLES.
  S  4.  Section 56-0607 of the environmental conservation law, as added
by chapter 413 of the laws of 1996, is amended to read as follows:
S 56-0607. Other air quality projects.
  Of monies received by the state from the sale of bonds pursuant to the
Clean Water/Clean Air Bond Act of 1996, up  to  twenty  million  dollars

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($20,000,000)  shall  be  available  for  disbursements  for air quality
projects pursuant to this section.
  The  commissioner is authorized in consultation with other state agen-
cies as may be necessary, to make state assistance payments or to  enter
into  contracts  in the name of the state for projects that will enhance
the quality of the state's environment  and  the  state's  air  quality,
INCLUDING  COOPERATION  WITH THE NEW YORK STATE ENVIRONMENTAL FACILITIES
CORPORATION, TO DISTRIBUTE MONIES FOR THE  RETROFITTING  OF  HEAVY  DUTY
DIESEL   ENGINE   VEHICLES,   CONSISTENT  WITH  SECTION  TWELVE  HUNDRED
EIGHTY-FIVE-S OF THE PUBLIC AUTHORITIES LAW.
  S 5. This act shall take effect immediately.