senate Bill S322

2013-2014 Legislative Session

Establishes the diesel emissions retrofit program and fund

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Archive: Last Bill Status - In Committee


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

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 08, 2014 referred to corporations, authorities and commissions
Jan 09, 2013 referred to corporations, authorities and commissions

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S322 - Bill Details

Current Committee:
Senate Corporations, Authorities And Commissions
Law Section:
Public Authorities Law
Laws Affected:
Add §1285-s, Pub Auth L; amd §§56-0603, 56-0605 & 56-0607, En Con L
Versions Introduced in Previous Legislative Sessions:
2011-2012: S4620
2009-2010: S5071B

S322 - Bill Texts

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Establishes the diesel emissions program and the diesel emissions reduction revolving fund; supplements such fund through federal diesel emission reduction act funds in addition to other state funds.

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BILL NUMBER:S322

TITLE OF BILL: REVISED 12/10/12
An act
to amend the public authorities law and the environmental conservation
law, in relation to establishing the state diesel emissions reduction
revolving loan fund

PURPOSE OR GENERAL IDEA OF THE BILL:
To protect clean air and public health by providing help for public
and private truck fleets in New York State to retrofit their trucks
to reduce diesel emissions.

SUMMARY OF PROVISIONS:
This bill would establish a state diesel emissions reduction fund
under NYSERDA. The fund would be used to finance a retrofit program
for projects that employ best available retrofit technology to reduce
emissions from heavy duty diesel engine vehicles owned by state,
municipal and private entities.

JUSTIFICATION:
The Diesel Emissions Reduction Act of 2005 required heavy-duty
vehicles owned by the state or under contract with the state to use
ultra-low sulfur diesel fuel and to be fitted with best available
retrofit technologies to reduce tailpipe emissions. Diesel emissions
are a contributing factor to both ozone and fine particle pollution
problems in many NY communities. The 2005 Act provided no funding to
aid compliance. Many municipal and private fleets are out of
compliance and this bill provides resources to aid compliance.

LEGISLATIVE HISTORY:
2011-12: S.4620/A.5156 (Kavanaugh)
2009-10: S.5071-B (Thompson)

FISCAL IMPLICATIONS:
This bill would reallocate $13.2 million in unspent funds from the
1996 Clean Water/Clean Air Bond Act funds. Specifically, money is
available in the state clean-fueled vehicle projects, clean fueled
buses projects, and the other air quality projects categories under
Air Quality.

LOCAL FISCAL IMPLICATIONS:
This bill will help municipalities meet their obligations under the
Diesel Emissions Reduction Act of 2005.

EFFECTIVE DATE:
This act shall take effect immediately.

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

                                   322

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  Sen.  AVELLA -- read twice and ordered printed, and when
  printed to be committed to the Committee on Corporations,  Authorities
  and Commissions

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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02181-01-3

S. 322                              2

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.
  (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

S. 322                              3

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
  (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 NONATTAINMENT OF THE NATIONAL AMBIENT AIR QUALITY PRIMARY STAN-
DARDS 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;

S. 322                              4

  (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.
  7.  NOTWITHSTANDING  ANY PROVISIONS OF LAW TO THE CONTRARY, THE CORPO-
RATION SHALL DISTRIBUTE MONEYS CONTAINED IN THE FUND AS FOLLOWS:
  (A) UNTIL MARCH THIRTY-FIRST, TWO THOUSAND FOURTEEN, 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; AND
  (B)  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

S. 322                              5

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
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. 322                              6

  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
($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.

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