S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10611
 
                           I N  A S S E M B L Y
 
                                May 9, 2018
                                ___________
 
 Introduced by M. of A. STERN, ENGLEBRIGHT -- (at request of the Environ-
   mental  Facilities  Corporation)  --  read  once  and  referred to the
   Committee on Environmental Conservation
 
 AN ACT to amend the environmental conservation law, in relation to water
   pollution control revolving fund agreements
 
   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 326 of the laws of
 2015, 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 thou-
 sand [eighteen] TWENTY-ONE, (i) submitted an application  for  financial
 assistance  in  the  form  of such a loan for an eligible project, which
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD14346-01-8

 A. 10611                            2
 
 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 director of the
 division of the budget, fifty percent of the principal balance outstand-
 ing on such loan at any time for such eligible project,  to  the  extent
 reasonably  practicable,  and subject to such deviation as may be neces-
 sary, 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 corporation pursuant
 to paragraph e of subdivision eight of this section or unless  an  allo-
 cation  in  a  differing amount is required for an innovative technology
 demonstration project.
   § 2. Paragraph e of subdivision 8 of section 17-1909 of  the  environ-
 mental  conservation law, as amended by chapter 326 of the laws of 2015,
 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  [eighteen]  TWENTY-ONE,  (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.
   § 3. This act shall take effect immediately.