S T A T E O F N E W Y O R K
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7459
I N S E N A T E
May 22, 2012
___________
Introduced by Sen. LAVALLE -- 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, the state finance
law and the public authorities law, in relation to water pollution
control linked loans; and to repeal section 104-a of the executive law
relating thereto
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraph g of subdivision 1 and paragraph e of subdivision
2 of section 17-1909 of the environmental conservation law, paragraph g
of subdivision 1 as amended and paragraph e of subdivision 2 as added by
chapter 262 of the laws of 2007, are amended to read as follows:
g. "Intended use plan" means the plan prepared pursuant to subdivision
two of this section, identifying the intended uses of the amounts avail-
able in the fund, including but not limited to: (i) a list of those
projects for construction of publicly owned treatment works on the
priority list developed pursuant to subdivision two of this section;
(ii) a list of projects developed pursuant to subdivision two of this
section anticipated to be financed by the fund through the water
pollution control linked deposit program; (iii) a description of the
short and long term goals and objectives of the fund; (iv) information
on the activities to be supported, including a description of project
categories, discharge requirements under the Federal Water Pollution
Control Act, terms of financial assistance, and eligible borrowers
pursuant to the water pollution control linked deposit program served;
(v) the criteria and method established for the distribution of funds;
and (vi) the amount of moneys from the fund, not to exceed [ten] FORTY
million dollars [annually,] to be made available for linked loans under
the water pollution control linked deposit program during the period
covered by such intended use plan. IN ADDITION, A PORTION OF THOSE
MONIES MAY BE USED TO PROVIDE GRANTS FOR RESIDENTIAL PROPERTIES THAT
MEET THE DEFINITION OF "AFFORDABLE WORKFORCE HOUSING" IN SECTION SIX
HUNDRED NINETY-NINE-A OF THE GENERAL MUNICIPAL LAW.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15844-01-2
S. 7459 2
e. For residential and small business on-site wastewater treatment
system projects funded through the water pollution control linked depos-
it program, [in consultation with the department of state,] the extent
to which the project will prevent an increase in nutrients in water
bodies or the extent to which the project will enhance AND PROTECT
GROUNDWATER, source water or watershed protection. PRIORITY SHALL BE
GIVEN TO THOSE RESIDENTIAL AND SMALL BUSINESS ON-SITE WASTEWATER TREAT-
MENT SYSTEM PROJECTS THAT MAY HAVE IMPAIRED OR CONTAMINATED OR ARE LIKE-
LY TO IMPAIR OR CONTAMINATE A SOLE SOURCE AQUIFER PRIMARY GROUNDWATER
RECHARGE AREA OR PRIMARY WATER SUPPLY AREA AS SUCH TERMS ARE DEFINED IN
SECTION 15-0514 OF THIS CHAPTER WITH PREFERENCE BASED ON PROJECTS THAT
WILL PROVIDE THE GREATEST IMPROVEMENT TO IMPAIRED WATER BODIES SUCH AS
THOSE IDENTIFIED IN THE DEPARTMENT'S WATER QUALITY ASSESSMENT PROGRAM
PURSUANT TO SECTION 303D OF THE FEDERAL CLEAN WATER ACT OR PROVIDE THE
GREATEST AMOUNT OF PROTECTION FOR WATER BODIES IN DANGER OF IMPAIRMENT.
S 2. Subdivisions 2, 3, 10 and 11 of section 236 of the state finance
law, as added by chapter 262 of the laws of 2007, are amended and three
new subdivisions 2-a, 3-a and 10-a are added to read as follows:
2. ["Eligible] PRIOR TO JANUARY FIRST, TWO THOUSAND THIRTEEN, "ELIGI-
BLE borrower" means any recipient, including any entity receiving or
eligible to receive an agricultural assessment pursuant to article twen-
ty-five-AA of the agriculture and markets law and any individual or
small business eligible to undertake an eligible project related to
residential and small business on-site wastewater treatment systems.
2-A. EFFECTIVE JANUARY FIRST, TWO THOUSAND THIRTEEN, "ELIGIBLE
BORROWER" MEANS ANY RECIPIENT, INDIVIDUAL OR SMALL BUSINESS ELIGIBLE TO
UNDERTAKE AN ELIGIBLE PROJECT RELATED TO RESIDENTIAL AND SMALL BUSINESS
ON-SITE WASTEWATER TREATMENT SYSTEMS.
3. ["Eligible] PRIOR TO JANUARY FIRST, TWO THOUSAND THIRTEEN, "ELIGI-
BLE project" shall mean a project for the implementation of a management
program established under section 319 of the Federal Water Pollution
Control Act related to agricultural operations, the upgrade or replace-
ment of residential and small business on-site wastewater treatment
systems with a system approved by the state or local department of
health, or the abandonment of residential and small business on-site
wastewater treatment systems [and] OR connection to a sewer, when a
sewer becomes available.
3-A. EFFECTIVE JANUARY FIRST, TWO THOUSAND THIRTEEN, "ELIGIBLE
PROJECT" SHALL MEAN A PROJECT FOR THE IMPLEMENTATION OF A MANAGEMENT
PROGRAM ESTABLISHED UNDER SECTION 319 OF THE FEDERAL WATER POLLUTION
CONTROL ACT RELATED TO THE UPGRADE OR REPLACEMENT OF RESIDENTIAL AND
SMALL BUSINESS ON-SITE WASTEWATER TREATMENT SYSTEMS WITH A SYSTEM
APPROVED BY THE STATE OR LOCAL DEPARTMENT OF HEALTH, OR THE ABANDONMENT
OF RESIDENTIAL AND SMALL BUSINESS ON-SITE WASTEWATER TREATMENT SYSTEMS
OR CONNECTION TO A SEWER, WHEN A SEWER BECOMES AVAILABLE.
10. ["Recipient"] PRIOR TO JANUARY FIRST, TWO THOUSAND THIRTEEN,
"RECIPIENT" means any person which is: (a) an individual or small busi-
ness which is eligible to undertake an eligible project related to resi-
dential and small business on-site wastewater treatment systems; or (b)
an entity receiving or eligible to receive an agricultural assessment
pursuant to article twenty-five-AA of the agriculture and markets law
which is eligible to undertake an eligible project; or (c) any two or
more of the foregoing which are acting jointly in connection with an
eligible project.
10-A. EFFECTIVE JANUARY FIRST, TWO THOUSAND THIRTEEN, "RECIPIENT"
MEANS ANY PERSON WHICH IS: (A) AN INDIVIDUAL OR SMALL BUSINESS WHICH IS
S. 7459 3
ELIGIBLE TO UNDERTAKE AN ELIGIBLE PROJECT RELATED TO RESIDENTIAL AND
SMALL BUSINESS ON-SITE WASTEWATER TREATMENT SYSTEMS; OR (B) ANY TWO OR
MORE OF THE FOREGOING WHICH ARE ACTING JOINTLY IN CONNECTION WITH AN
ELIGIBLE PROJECT.
11. "Residential and small business on-site wastewater treatment
system" means a system serving a residence or small business that
provides for the treatment and/or disposition of the combination of
human and sanitary waste with water [not exceeding one thousand gallons
per day].
S 3. Section 237 of the state finance law, as added by chapter 262 of
the laws of 2007, is amended to read as follows:
S 237. Establishment and purpose; water pollution control linked
deposit program authorization. The water pollution control linked depos-
it program is hereby created. The purpose of this program is to encour-
age and assist eligible borrowers within the state to undertake eligible
projects that reduce, control or prevent water pollution. The corpo-
ration is hereby authorized to use funds in the water pollution control
revolving fund established pursuant to section twelve hundred eighty-
five-j of the public authorities law not to exceed [ten] FORTY million
dollars [per fiscal year] for the water pollution control linked deposit
program.
S 4. Section 238 of the state finance law, as added by chapter 262 of
the laws of 2007, is amended to read as follows:
S 238. Linked loans. Linked loans shall be made by lenders pursuant to
the program only to eligible borrowers in connection with eligible
projects. No such loans shall be made after September thirtieth, two
thousand [eleven] TWENTY. The credit decisions for making a linked loan
shall be made solely by the lender.
S 5. Section 240 of the state finance law is amended by adding a new
subdivision 3 to read as follows:
3. THE CORPORATION SHALL PROVIDE NOTICE OF THE LINKED DEPOSIT PROGRAM
IN ITS WRITTEN MATERIAL AND ON ITS WEBSITE. THE CORPORATION SHALL
FURTHER NOTIFY MUNICIPALITIES OF THE AVAILABILITY OF THE PROGRAM FOR
ELIGIBLE BORROWERS.
S 6. Subdivision 2 of section 242 of the state finance law, as added
by chapter 262 of the laws of 2007, is amended to read as follows:
2. On or before February first, two thousand ten, and annually there-
after, the corporation shall submit to the governor, the temporary pres-
ident of the senate and the speaker of the assembly a report regarding
the activities of the programs. Such report shall include, but shall not
be limited to, the number and type of linked loans under each of the
programs and the amount thereof INCLUDING THE NUMBER OF RESIDENTIAL AND
SMALL BUSINESS ON-SITE WASTEWATER TREATMENT PROJECTS OR SEWER
CONNECTIONS MADE BY COUNTY, AND THE AMOUNTS THEREOF; the number and type
of lenders making linked loans and of borrowers receiving linked loans;
the geographic distribution of such lenders and borrowers; as well as
any information the corporation determines useful in evaluating the
benefits of the programs.
S 7. Section 243 of the state finance law, as added by chapter 262 of
the laws of 2007, is amended to read as follows:
S 243. Rules and regulations. The corporation [may] SHALL promulgate
rules and regulations necessary and reasonable for the operation of the
programs.
S 8. Section 104-a of the executive law is REPEALED.
S 9. The public authorities law is amended by adding a new section
1285-s to read as follows:
S. 7459 4
S 1285-S. WATER POLLUTION CONTROL LINKED LOANS. THE CORPORATION SHALL
ESTABLISH METHODS TO FACILITATE LOANS TO ELIGIBLE BORROWERS AND TO
DEVELOP EDUCATIONAL MATERIALS FOR ELIGIBLE BORROWERS ABOUT THE LOW-IN-
TEREST LOANS AVAILABLE THROUGH THE WATER POLLUTION CONTROL LINKED DEPOS-
IT PROGRAM, ESTABLISHED BY ARTICLE SIXTEEN OF THE STATE FINANCE LAW, AND
TO DEVELOP AN APPLICATION FORM TO BE PROVIDED TO LENDERS FOR LINKED
DEPOSIT LOAN REQUESTS. FOR RESIDENTIAL AND SMALL BUSINESS ON-SITE WASTE-
WATER TREATMENT SYSTEMS PROJECTS, THE CORPORATION SHALL REQUIRE OWNERS
OF SUCH SYSTEMS TO SUBMIT THE RESULTS OF INSPECTIONS OF SUCH SYSTEMS AT
THE TIME OF AN APPLICATION FOR FINANCIAL ASSISTANCE PURSUANT TO ARTICLE
SIXTEEN OF THE STATE FINANCE LAW. THE CORPORATION MAY PROMULGATE RULES
AND REGULATIONS NECESSARY AND REASONABLE FOR THE OPERATION OF THE
PROGRAM, INCLUDING BUT NOT LIMITED TO STANDARDS FOR THE INSPECTION OF
RESIDENTIAL AND SMALL BUSINESS ON-SITE WASTEWATER TREATMENT SYSTEMS.
S 10. This act shall take effect on the one hundred eightieth day
after it shall have become a law. Effective immediately, the addition,
amendment and/or repeal of any rule or regulation necessary for the
implementation of this act on its effective date is authorized to be
made on or before such date.