S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7953
 
                             I N  S E N A T E
 
                              March 13, 2018
                                ___________
 
 Introduced by Sen. O'MARA -- (at request of the Environmental Facilities
   Corporation) -- 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, 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

 S. 7953                             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.