S T A T E   O F   N E W   Y O R K
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                                  4279

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            February 2, 2009
                               ___________

Introduced  by M. of A. CROUCH, KOLB, BURLING, BARCLAY, HAWLEY -- Multi-
  Sponsored by -- M. of A. BACALLES, FINCH, OAKS, RAIA -- read once  and
  referred to the Committee on Agriculture

AN  ACT  to  amend  the public authorities law, in relation to providing
  incentives for the installation of anaerobic manure digesters on agri-
  cultural operations to convert trapped methane from manure into energy

  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 1860-b to read as follows:
  S 1860-B. ANAEROBIC DIGESTERS REVOLVING FUND PROGRAM. 1. (A)  NOTWITH-
STANDING  THE  PROVISIONS OF ANY GENERAL OR SPECIAL LAW TO THE CONTRARY,
THE NEW YORK STATE ENVIRONMENTAL FACILITIES CORPORATION SHALL  UNDERTAKE
TO PROVIDE FINANCIAL ASSISTANCE FOR AGRICULTURAL PURPOSES TO SUPPORT THE
PLANNING,  DEVELOPMENT AND CONSTRUCTION OF ANAEROBIC MANURE DIGESTERS IN
ACCORDANCE WITH THE PROVISIONS OF THIS SECTION.
  (B) THERE IS HEREBY ESTABLISHED IN THE  CUSTODY  OF  THE  AUTHORITY  A
SPECIAL  FUND  TO  BE  KNOWN  AS THE ANAEROBIC DIGESTERS REVOLVING FUND.
MONEYS IN THE ANAEROBIC DIGESTERS REVOLVING  FUND  SHALL  BE  SEGREGATED
FROM  ALL  OTHER  FUNDS OF OR IN THE CUSTODY OF THE AUTHORITY SUBJECT TO
ANY RIGHTS OF HOLDERS OF NEW YORK STATE ENVIRONMENTAL FACILITIES  CORPO-
RATION BONDS OR NOTES ISSUED FOR THE PURPOSES OF THIS SECTION. MONEYS IN
THIS  FUND  SHALL ONLY BE USED IN ACCORDANCE WITH THE PROVISIONS OF THIS
SECTION.  THE MONEYS IN SUCH FUND SHALL BE APPLIED TO OR  PAID  OUT  FOR
AUTHORIZED  PURPOSES OF SUCH FUND ON THE DIRECTION OF THE CHAIRPERSON OF
THE AUTHORITY, OR SUCH OTHER PERSON AS THE AUTHORITY SHALL AUTHORIZE  TO
MAKE  SUCH  DIRECTION, IN CONSULTATION WITH THE DIRECTOR OF THE DIVISION
OF THE BUDGET AND THE COMMISSIONER OF AGRICULTURE AND MARKETS.
  2. IN ORDER TO EFFECTUATE THE PURPOSES OF THIS SECTION, THE  AUTHORITY
MAY  EXTEND  CREDIT  TO OR ON BEHALF OF AN AGRICULTURAL FACILITY FOR THE
CONSTRUCTION OR ACQUISITION OF A PROJECT, OR FOR THE  REIMBURSEMENT  FOR

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06971-01-9
              

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COSTS INCURRED BY AN AGRICULTURAL FACILITY IN CONNECTION WITH A PROJECT,
PROVIDED SUCH AGRICULTURAL FACILITY HAS RECEIVED A COMMITMENT TO RECEIVE
FROM  A  LENDER  A  LOAN OR OTHER FINANCIAL ASSISTANCE ACCEPTABLE TO THE
AUTHORITY.  IN  THE  EXERCISE  OF  THE POWERS GRANTED IN THIS SECTION IN
CONNECTION WITH A PROJECT FOR AN AGRICULTURAL  FACILITY,  THE  AUTHORITY
MAY  REQUIRE  THE  INCLUSION  IN  ANY  CONTRACT, LOAN AGREEMENT OR OTHER
INSTRUMENT OF SUCH PROVISIONS FOR THE FINANCING OF SUCH PROJECT AND SUCH
OTHER FINANCIAL AND OTHER COVENANTS AS MAY APPLY  TO  SUCH  AGRICULTURAL
FACILITIES AS THE AUTHORITY MAY DEEM DESIRABLE AND/OR APPROPRIATE AND TO
DO  ALL  THINGS  NECESSARY  TO  EXECUTE ANY INSTRUMENT IN CONNECTION AND
DESIRABLE WITH SUCH FINANCING.
  3. IN CONNECTION WITH THE ISSUANCE OF  ANY  BOND  OR  NOTE  ISSUED  IN
CONNECTION  WITH  OR FOR THE ANAEROBIC DIGESTERS REVOLVING FUND PROGRAM,
THE AUTHORITY MAY FIX AND COLLECT ANY FEES AND  CHARGES,  INCLUDING  BUT
NOT  LIMITED  TO REIMBURSEMENT OF ALL COSTS OF FINANCING INCURRED BY THE
AUTHORITY, AS THE AUTHORITY SHALL DETERMINE TO BE REASONABLE.
  4. IN CONNECTION WITH THE EXTENSION OF CREDIT AND THE  ISSUANCE  OF  A
BOND  OR  NOTE  FOR  THE  CONSTRUCTION  OR  ACQUISITION  OF A PROJECT AS
PROVIDED IN THIS SECTION, AN AGRICULTURAL FACILITY SHALL SUBMIT  TO  THE
AUTHORITY  AN  APPLICATION  FOR  THE  EXTENSION OF CREDIT OR A LOAN. THE
AUTHORITY MAY DENY SUCH APPLICATION FOR ANY REASON IT DEEMS  APPROPRIATE
IN THE PUBLIC INTEREST.
  5. ANY BONDS OR NOTES ISSUED TO FINANCE THE PROVISIONS OF THIS SECTION
SHALL BE SPECIAL LIMITED OBLIGATIONS OF THE AUTHORITY PAYABLE SOLELY OUT
OF  THE  REVENUE  DERIVED FROM ANY LOAN OR FINANCE AGREEMENT, DEBT OBLI-
GATION OR SALES CONTRACT,  COLLATERAL  OR  OTHER  PROPERTY  RECEIVED  IN
CONNECTION  WITH  THE  ANAEROBIC  DIGESTERS  REVOLVING FUND PROGRAM. ALL
ASSETS AND LIABILITIES CREATED THROUGH THE ISSUANCE OF  BONDS  OR  NOTES
UNDER  THIS  SECTION SHALL BE SEPARATE FROM ALL OTHER ASSETS AND LIABIL-
ITIES OF THE NEW YORK STATE ENVIRONMENTAL FACILITIES CORPORATION.    THE
NEW  YORK STATE ENVIRONMENTAL FACILITIES CORPORATION SHALL HAVE NO MORAL
OR LEGAL OBLIGATION OR LIABILITY TO ANY AGRICULTURAL FACILITY  OR  OTHER
PERSON  UNDER  THIS  SECTION  EXCEPT  AS  EXPRESSLY  PROVIDED BY WRITTEN
CONTRACT.  NO FUNDS IN THE ANAEROBIC DIGESTERS  REVOLVING  FUND  PROGRAM
MAY BE COMMINGLED WITH ANY OTHER FUNDS OF THE AUTHORITY.
  6.  (A)  THE  AUTHORITY  SHALL  PROMULGATE  REGULATIONS,  DEVELOPED IN
CONSULTATION WITH THE COMMISSIONER OF AGRICULTURE AND MARKETS,  FOR  THE
PURPOSE OF CARRYING OUT ITS RESPONSIBILITIES UNDER THIS SECTION, INCLUD-
ING  ESTABLISHING  THE CRITERIA AND STANDARDS FOR EVALUATING THE PROJECT
TO BE FINANCED AND THE ELIGIBILITY OF THE AGRICULTURAL FACILITY.
  (B) THE AUTHORITY SHALL CONSULT WITH THE COMMISSIONER  OF  AGRICULTURE
AND  MARKETS  REGARDING  PROMOTION  OF  THE  PROGRAM  AND AGRICULTURALLY
RELATED QUESTIONS REGARDING THE PROGRAM OR APPLICATIONS.
  S 2. Paragraph (a) of subdivision 1 of  section  1290  of  the  public
authorities  law,  as  amended  by  chapter  366 of the laws of 2004, is
amended to read as follows:
  (a) The corporation shall have power and  is  hereby  authorized  from
time  to  time to issue its negotiable or non-negotiable bonds and notes
in conformity with applicable provisions of the uniform commercial  code
in  such  principal amount, as, in the opinion of the corporation, shall
be necessary to provide sufficient funds  for  achieving  its  purposes,
including the acquisition and construction, operation and maintenance of
sewage  treatment works, sewage collecting systems, solid waste disposal
facilities, storm water collecting systems, water management facilities,
air pollution control facilities, the removal, disposal and  remediation
of  petroleum storage tanks and the remediation of the sites thereof and

A. 4279                             3

any other project or projects authorized pursuant to the  provisions  of
this  title, and paying the cost thereof; the making of loans to persons
and, for purposes  of  sections  twelve  hundred  eighty-five-j,  twelve
hundred  eighty-five-m  and  twelve  hundred eighty-five-o of this title
only, to any municipality or recipient for such purposes; the making  of
loans,  providing of financing or extension of credit to or on behalf of
beginning farmers for purposes of section twelve  hundred  eighty-five-r
of  this  title  only;  THE  MAKING  OF LOANS, PROVIDING OF FINANCING OR
EXTENSION OF CREDIT TO OR  ON  BEHALF  OF  AGRICULTURAL  FACILITIES  FOR
PURPOSES  OF  SECTION EIGHTEEN HUNDRED SIXTY-B OF THIS CHAPTER ONLY; the
financing of the  design,  acquisition,  construction,  improvement  and
installation  of all or any portion of Riverbank Park, provided however,
that any such bonds or notes issued to finance Riverbank Park shall only
be issued in such principal amount as  shall  be  necessary  to  provide
sufficient  funds  for  the  repayment  of amounts disbursed pursuant to
appropriations or reappropriations under chapter fifty-four of the  laws
of  nineteen hundred ninety-one including any subsequent reappropriation
of the unexpended balance of such appropriations or reappropriations for
the purpose of Riverbank Park, plus an amount  sufficient  to  fund  any
debt service reserve fund established by the corporation for the purpose
of  Riverbank  Park  and  to  provide  for the payment of fees and other
charges and expenses of the corporation in connection  with  such  bonds
and notes, which principal amount shall constitute the statutory ceiling
on  the  amount  of bonds and notes that can be issued for such purpose;
the financing of all or any portion of  any  state  park  infrastructure
project or reimbursement of the state for expenditures relating thereto,
plus  an amount to provide for the payment of fees and other charges and
expenses of the corporation in connection with such bonds and notes; the
provision of funds to the state for any amounts  contributed  or  to  be
contributed  to the water pollution control revolving fund, the pipeline
for jobs fund or the drinking water revolving  fund  provided,  however,
that  any  such  bonds  or  notes  issued  to provide funds to the water
pollution control revolving fund, the pipeline  for  jobs  fund  or  the
drinking  water  revolving  fund  shall only be issued in such principal
amount as shall be necessary to provide sufficient funds for the  repay-
ment  of  amounts disbursed pursuant to any appropriation or reappropri-
ation enacted for the pipeline for jobs fund or for the payment  of  the
state  match  for  federal capitalization grants for the water pollution
control revolving fund or the drinking water  revolving  fund,  plus  an
amount  sufficient  to fund any debt service reserve fund and to provide
for fees, charges and other costs of issuance,  which  principal  amount
shall  constitute the statutory ceiling on the amount of bonds and notes
that can be issued for such purpose; the financing of any  environmental
infrastructure  projects  authorized  by  section twelve hundred eighty-
five-p of this title; the purchase of municipal  bonds  and  notes,  and
bonds  and  notes  of  a  state  agency,  the payment of the cost of any
project, the payment of interest on bonds and notes of the  corporation,
the  establishment  of  reserves  to  secure  such  bonds and notes; the
provision of working capital and all other expenditures  of  the  corpo-
ration incident to and necessary or convenient to carry out its purposes
and powers;
  S 3. This act shall take effect on the one hundred twentieth day after
it shall have become a law.