Public Hearing - January 27, 2020

                                                                  1

 1   BEFORE THE NEW YORK STATE SENATE FINANCE
     AND ASSEMBLY WAYS AND MEANS COMMITTEES
 2   ----------------------------------------------------

 3              JOINT LEGISLATIVE HEARING

 4             In the Matter of the
           2020-2021 EXECUTIVE BUDGET ON
 5           ENVIRONMENTAL CONSERVATION

 6   ----------------------------------------------------

 7                              Hearing Room B
                                Legislative Office Building
 8                              Albany, New York

 9                              January 27, 2020
                                11:04 a.m.
10

11   PRESIDING:

12              Senator Liz Krueger
                Chair, Senate Finance Committee
13
                Assemblywoman Helene E. Weinstein
14              Chair, Assembly Ways & Means Committee

15   PRESENT:

16              Senator James L. Seward
                Senate Finance Committee (RM)
17
                Assemblyman Edward P. Ra
18              Assembly Ways & Means Committee (RM)

19              Senator Todd Kaminsky
                Chair, Senate Committee on
20               Environmental Conservation

21              Assemblyman Steve Englebright
                Chair, Assembly Committee on
22               Environmental Conservation

23              Senator Jen Metzger
                Chair, Senate Committee on Agriculture
24
                                                          2

 1   2020-2021 Executive Budget
     Environmental Conservation
 2   1-27-20

 3   PRESENT:    (Continued)

 4              Assemblywoman Donna A. Lupardo
                Chair, Assembly Committee on
 5               Agriculture

 6              Senator Jose M. Serrano
                Chair, Senate Committee on Cultural
 7                Affairs, Tourism, Arts and Recreation

 8              Assemblyman Daniel J. O'Donnell
                Chair, Assembly Committee on
 9               Tourism, Parks, Arts and
                 Sports Development
10
                Assemblyman Michael J. Cusick
11              Chair, Assembly Committee on Energy

12              Assemblyman Harvey Epstein

13              Senator John Liu

14              Assemblywoman Patricia Fahy

15              Assemblyman Robert Carroll

16              Assemblyman Dan Stec

17              Senator Thomas F. O'Mara

18              Assemblyman Steven Otis

19              Assemblywoman Didi Barrett

20              Senator Joseph P. Addabbo, Jr.

21              Assemblywoman Barbara S. Lifton

22              Senator Anna M. Kaplan

23              Senator Elizabeth O'C. Little

24              Assemblywoman Deborah J. Glick
                                                     3

 1   2020-2021 Executive Budget
     Environmental Conservation
 2   1-27-20

 3   PRESENT:    (Continued)

 4              Senator Brad Hoylman

 5              Assemblyman Jeffrion L. Aubry

 6              Senator Robert G. Ortt

 7              Assemblywoman Carrie Woerner

 8              Assemblyman William Colton

 9              Assemblyman Anthony D'Urso

10              Senator Phil M. Boyle

11              Assemblyman Billy Jones

12              Assemblywoman Marianne Buttenschon

13              Senator Robert Jackson

14              Assemblyman Felix W. Ortiz

15              Assemblyman Philip A. Palmesano

16              Assemblyman John T. McDonald III

17              Senator George M. Borrello

18              Assemblyman Chris Tague

19              Assemblyman Charles D. Fall

20              Assemblyman Colin Schmitt

21              Senator Patty Ritchie

22              Assemblyman Mark Walczyk

23

24
                                                                 4

 1   2020-2021 Executive Budget
     Environmental Conservation
 2   1-27-20

 3                    LIST OF SPEAKERS

 4                                       STATEMENT   QUESTIONS

 5   Basil Seggos
     Commissioner
 6   NYS Department of
      Environmental Conservation            17        25
 7
     Erik Kulleseid
 8   Commissioner
     NYS Office of Parks, Recreation
 9    and Historic Preservation             195      203

10   Richard A. Ball
     Commissioner
11   NYS Department of Agriculture
      and Markets                           231      236
12
     John B. Rhodes
13   Chair
     NYS Public Service Commission
14       -and-
     Alicia Barton
15   President & CEO
     NYSERDA                                299      311
16
     Anne Reynolds
17   Executive Director
     Alliance for Clean Energy
18    New York                              377

19   Peter M. Iwanowicz
     Executive Director
20   Environmental Advocates
      of New York                           382
21
     Jessica Ottney Mahar
22   NY Policy Director
     The Nature Conservancy                 389      394
23

24
                                                                5

 1   2020-2021 Executive Budget
     Environmental Conservation
 2   1-27-20

 3                    LIST OF SPEAKERS, Continued

 4                                     STATEMENT    QUESTIONS

 5   Patrick McClellan
     NYS Policy Director
 6   New York League of Conservation
      Voters                             399         404
 7
     Resa A. Dimino
 8   Senior Consultant
     Resource Recycling Systems          408
 9
     Jeff Jones
10   Consultant
     Center for Creative Land
11    Recycling                          413

12   Adrienne Esposito
     Executive Director
13   Citizens Campaign for
      the Environment                     418        424
14
     Roger Downs
15   Conservation Director
     Sierra Club Atlantic Chapter        427
16
     Jeff Williams
17   Director of Public Policy
     New York Farm Bureau                433         437
18
     David Grusenmeyer
19   Executive Director
     NY Farm Viability Institute         442
20
     Samantha Levy
21   NY Policy Manager
     American Farmland Trust             446         451
22
     Liz Moran
23   Environmental Policy Director
     Charlie Olver
24   Public Policy Associate
     NYPIRG                              460         465
                                                                6

 1   2020-2021 Executive Budget
     Environmental Conservation
 2   1-27-20

 3                    LIST OF SPEAKERS, Continued

 4                                    STATEMENT     QUESTIONS

 5   Jeremy Cherson
     Legislative Advocacy Manager
 6   Riverkeeper
         -and-
 7   Andy Bicking
     Director of Public Policy
 8   Scenic Hudson                       467         477

 9   Meme Hanley
     Program Manager
10   Land Trust Alliance
         -and-
11   Kathy Moser
     Senior VP for Parks and Policy
12   Open Space Institute                479          485

13   Kevin Chlad
     Director, Government Relations
14   The Adirondack Council
         -and-
15   Peter Bauer
     Executive Director
16   Protect the Adirondacks
         -and-
17   Michael Barrett
     Executive Director
18   Adirondack Mountain Club            488         494

19   Erin Tobin
     VP for Policy and Preservation
20   Preservation League of NYS          497         501

21   Will Cote
     Parks Program Director
22   Parks & Trails New York             504

23

24
                                                                  7

 1   2020-2021 Executive Budget
     Environmental Conservation
 2   1-27-20

 3                      LIST OF SPEAKERS, Continued

 4                                      STATEMENT     QUESTIONS

 5   Margaret Gorman
     Senior Director,
 6    Northeast Region
     Omar Terrie
 7   Director, Plastics
      Food Packaging Group
 8   American Chemistry Council            511         515

 9   Mark Dunlea
     Chair
10   Green Education and
      Legal Fund                           519
11
     Erin McGrath
12   Policy Manager
     Audubon New York                      524         531
13
     Philip M. DeGaetano
14   NY Commissioner
     Interstate Environmental
15    Commission                           533

16

17

18

19

20

21

22

23

24
                                                      8

 1          CHAIRWOMAN KRUEGER:    If everybody

 2   could take their seats, we're going to get

 3   ready to started.

 4          Hi, good morning.    My name is Liz

 5   Krueger.   I'm chair of the New York State

 6   Senate Finance Committee.    And the Senate is

 7   cochairing -- chairing this hearing today; we

 8   take turns between the Assembly and the

 9   Senate each hearing.

10          Today is the first of 13 hearings

11   conducted by the joint fiscal committees of

12   the Legislature regarding the Governor's

13   proposed budget for state fiscal year 2021.

14   These hearings are conducted pursuant to the

15   New York State Constitution and Legislative

16   Law.

17          Today the Senate Finance Committee and

18   Assembly Ways and Means Committee will hear

19   testimony concerning the Governor's proposed

20   budget for the Department of Environmental

21   Conservation; the Office of Parks, Recreation

22   and Historic Preservation; the Department of

23   Agriculture and Markets; the Public Service

24   Commission; and the New York State Energy
                                                      9

 1   Research and Development Authority.

 2         Following each testimony there will be

 3   some time for questions from the chairs of

 4   the fiscal committees -- which is Ways and

 5   Means in the Assembly, Finance in the

 6   Senate -- as well as other legislators who

 7   have joined us today.

 8         I will next introduce members of the

 9   Senate, and Assemblymember Helene Weinstein,

10   chair of the Assembly Ways and Means

11   Committee, will introduce members of the

12   Assembly.   In addition, James Seward, ranking

13   member of the Senate Finance Committee, will

14   introduce members of his conference.

15         Before those introductions, I would

16   like to welcome our testifiers today:

17   Basil Seggos, commissioner of the Department

18   of Environmental Conservation;

19   Erik Kulleseid, commissioner of the Office of

20   Parks, Recreation and Historic Preservation;

21   Richard Ball, commissioner of the Department

22   of Ag and Markets; John Rhodes, chair of the

23   Public Service Commission; and Alicia Barton,

24   president and CEO of the New York State
                                                     10

 1   Energy Research and Development Authority.

 2         I want to just highlight some of the

 3   rules for all of these hearings.   Everybody

 4   staring at the dais, and those of us on the

 5   dais looking out, can all see these clocks

 6   that right now are marked 10 minutes.

 7   Government representatives get 10 minutes to

 8   present their testimony.   Others, members of

 9   the public, get five minutes.   When we have

10   panels, it's some combination, and we'll

11   announce them and the clock will be set.

12         When the clock stops, please you stop,

13   including my colleagues here.   Because when

14   you are asking questions where the chairs of

15   the appropriate matching committee get

16   10 minutes and the rest of the people get

17   five minutes, that's for your question plus

18   the answers.

19         So be succinct.    Understand that what

20   you may want to do is say "Perhaps you can't

21   get me all the answers right now, you can

22   follow up in writing."

23         So also for all government officials,

24   we ask that any submissions in writing based
                                                      11

 1   on answering questions go to both the people

 2   who ask and the Finance and Ways and Means

 3   chairs, so we can make sure that they are put

 4   up online with all of the testimony.

 5         Testimony will all be up online, and

 6   we've made some improvements in the

 7   website that should make it easier to access

 8   and read.   So even if you didn't get your

 9   request in to testify on time or -- hold on

10   to your seats, the last train home is 5:00

11   and we're going to be going until 8:00 and

12   you realize, I can't stay -- that's okay,

13   just let us know that you can't stay for your

14   appointed testimony.

15         Your testimony is still being

16   distributed to all members and still up

17   online for anyone to follow up and read.

18         So I wish we could condense these

19   hearings to a nine-to-five model, but that's

20   not how life works.    And we certainly

21   understand many of you will sit here for many

22   hours, and we appreciate that and appreciate

23   your contributions.    But every year somebody

24   comes running up going, "Oh, my God, no, I
                                                      12

 1   missed the last train."     There are options

 2   for you if that's going to be the story.

 3         Because we have such tight limits on

 4   time, do not read us your testimony.

 5   Highlight in bullet-point format the key

 6   issues you want to make sure we get.     Every

 7   year we say this; every year somebody goes

 8   "Uh-huh" and then proceeds to attempt to read

 9   eight pages of testimony in five minutes.

10   Trust me, it doesn't work.     It doesn't work

11   in 10 minutes, either.

12         So highlight.   We all have your

13   testimony.   We all have been elected to our

14   positions, and so I'm going to take the leap

15   that means we can all read and will do so.

16         So you stay focused on the key points.

17   You want to make sure you are using your time

18   wisely.   And please, please, please, even

19   though you're hearing me and some of you are

20   just going to say, "No, I'm just going to

21   read anyway," Helene and I will cut you off

22   at the time limit.   And so if you made your

23   most important point on page 8, no one's ever

24   going to hear you say it.
                                                     13

 1         With that, I'm going to introduce my

 2   colleagues who I see here from the Senate

 3   Democrats and allow Senator Seward to

 4   introduce his members.

 5         We have Joe Addabbo, John Liu, Brad

 6   Hoylman, Jen Metzger, Anna Kaplan, Todd

 7   Kaminsky.

 8         Senator Seward.

 9         SENATOR SEWARD:    Thank you, Senator

10   Krueger.

11         I'm pleased to introduce members of my

12   conference who are here today:   Our ranking

13   member on the Environmental Conservation

14   Committee, Senator Phil Boyle, as well as

15   Senator Betty Little.

16         And right at the outset, before our

17   hearings begin, I want to say very, very

18   briefly that I am pleased to participate on

19   behalf of my conference as the ranking member

20   of the Finance Committee in the Senate; I'm

21   pleased to participate in these budget

22   hearings again this year.

23         I think it's important for us to

24   recognize the fact that as we put together
                                                     14

 1   this year's State Budget, we do not do so in

 2   a vacuum.   There are some storm clouds out

 3   there that I think we need to deal with as

 4   part of this budget, if not before:   The

 5   $6 billion deficit, the fact that the Census

 6   Bureau came out toward the end of last year

 7   with a report that says that New York State

 8   leads the nation in outmigration of people,

 9   and also the fact that, in my opinion, the

10   bail reforms and other criminal justice

11   reforms of last year went way too far in

12   making our communities less safe.

13         And I'm hoping that as we finalize a

14   new State Budget, that we can close the

15   deficit without simply resorting to new taxes

16   and fees or cost shifts to local governments,

17   that we can deal with this outmigration issue

18   by finding ways to make our state a more

19   affordable place to live with additional

20   economic opportunities.   And if we don't do

21   it before the budget's passed, I'm hoping

22   that it's very, very important that we have

23   repeal and reworking of the bail reforms and

24   the other criminal justice reforms.
                                                       15

 1         So that would be my goal through the

 2   process this year.    I look forward to the

 3   testimony of not only our state officials,

 4   but various other stakeholders.

 5         CHAIRWOMAN KRUEGER:     Ways and Means

 6   Chair Helene Weinstein.

 7         CHAIRWOMAN WEINSTEIN:     Thank you, Liz.

 8         I would just reemphasize all of the

 9   information that Senator Krueger mentioned

10   about the running of these hearings to the

11   members.   I would just remind members that we

12   do not, as members, have props, and to remind

13   people who are either witnessing the hearings

14   by participating, sitting here or potentially

15   being a witness, that we don't -- we prohibit

16   the use of signs or demonstrations so we can

17   get through the hearings as speedily as

18   possible so that the people at the end of the

19   hearing are able to have a full audience of

20   members and to be able to listen and absorb

21   your comments also.

22         So I'm very pleased to be here to

23   joint Senator Krueger and the other members

24   of the Ways and Means Committee and the
                                                      16

 1   Finance Committee for the beginning of our

 2   budget hearings on the Governor's Executive

 3   Budget.

 4         I particularly want to welcome our new

 5   ranking member, Assemblyman Ed Ra, who's been

 6   a long-standing member of the Ways and Means

 7   Committee and has taken over now as the

 8   ranker and will be participating in the

 9   hearings.

10         Before he introduces the members of

11   his conference who are here, let me just take

12   a moment to introduce the members of the

13   Assembly who have joined us.    So we have

14   Mr. Englebright, chair of our EnCon

15   Committee; Mr. Cusick, chair of our Energy

16   Committee; Assemblywoman Lifton, Assemblyman

17   Otis, Assemblyman Epstein, Assemblywoman

18   Fahy, Assemblyman Colton, and Assemblyman

19   Carroll.

20         So with that, Mr. Ra, if you'd like to

21   introduce your members.

22         ASSEMBLYMAN RA:     Thank you very much.

23   Happy to be here alongside Chair Weinstein

24   and Chair Krueger.
                                                        17

 1            It is my first hearing as the ranking

 2   member, so I thank the chair for her help,

 3   and I look forward to spending lots of

 4   quality time together in the next few weeks.

 5            I just want to welcome our two members

 6   that are here right now, Dan Stec, who is the

 7   ranking member on the Environmental

 8   Conservation Committee, and Assemblyman Chris

 9   Tague.

10            CHAIRWOMAN KRUEGER:    Okay, thank you.

11            So our first testifier is Basil

12   Seggos, commissioner, New York State

13   Department of Environmental Conservation.

14            COMMISSIONER SEGGOS:   Good morning,

15   Chairwoman Krueger, Chairwoman Weinstein, and

16   other members of the Legislature.     It's good

17   to be with you again.    My name is Basil

18   Seggos.    I'm the commissioner of the DEC.

19   And with me today are Jeff Safranko, deputy

20   commissioner for administration, and Jay

21   McLaughlin, who is the director of

22   legislative affairs at DEC.

23            And I heard your instructions last

24   week, I submitted my testimony for the
                                                       18

 1   record, so I just have a few bullet points

 2   for you here today.

 3           First off, a bit of a mea culpa.    I

 4   told you at this time last year it would be

 5   my last budget hearing.    Well, I'm back at

 6   it.   I decided I wanted to do another one,

 7   maybe more.   So it's good to see you all

 8   again in this position.

 9           Look, in all honesty, I decided to

10   stay because I think I've got the best job in

11   New York State government.    I've got the best

12   staff, the most committed environmental

13   governor in America.   And right now we have

14   literally in front of us the most important

15   time on our hands.    And that was no time to

16   leave the fight, so that's why I decided to

17   stay.

18           The environment has become a pressing

19   concern once again 50 years later, now

20   globally.   And now looking back on the

21   actions of the last 12 months, I'm pretty

22   confident I made the right decision.

23           So I'll just say this at the outset,

24   and I'm entirely confident of this.    There's
                                                        19

 1   no state doing what New York is doing for the

 2   environment and for the climate crisis.      And

 3   I look back over the nine years that I've

 4   been part of the administration, working for

 5   the Governor, and in partnership with you

 6   all, at some of our accomplishments on air

 7   quality, water quality, environmental

 8   infrastructure, renewable energy and

 9   addressing toxic waste -- and also, very

10   importantly, responding forcefully to severe

11   storms and saving lives.

12         All of what we've done over the last

13   nine years, in partnership with you, has

14   protected this state.   And this aggressive

15   and early action, really which we started in

16   2011, set us up very well to protect against

17   the trade winds coming out of Washington.

18   And there's no secret now that Trump is in

19   full retreat on environmental issues.    I

20   mean, look at the newspaper any day and

21   there's a new change.

22         My view is that New York is the

23   perfect contrast to that.   And as the

24   Governor led off his State of the State and
                                                      20

 1   his budget address recognizing this, the

 2   planet is facing the most grave threat ever

 3   in climate change, and we must act.

 4         You'll hear today from both me and all

 5   of my fellow commissioners about the year

 6   ahead and the years ahead.    Last year we,

 7   with you, enacted the most ambitious climate

 8   law in the nation, and now it's incumbent

 9   upon us to accelerate all of our work to

10   install renewable energy across the state,

11   get off of fossil fuels, and restore our

12   landscape -- and restore our landscape so

13   that we can get ready for the effects of

14   climate change.

15         And that's really the essence of what

16   the Governor was talking about the other day,

17   this $33 billion, five-year commitment to

18   fight the climate crisis.    And part of that

19   $33 billion is the "Restore Mother Nature"

20   Bond Act, $3 billion bond act, which in my

21   view is an investment in the future.   We are

22   projecting upwards of $50 billion of damage

23   to the state from severe weather over the

24   next 10 years.    So I think a $3 billion down
                                                      21

 1   payment in protecting the state, protecting

 2   landscapes, protecting communities from

 3   flooding, and rebuilding habitat, expanding

 4   parks, is a wise investment and will put us

 5   in a much better place.

 6         We also, as part of our budget, as you

 7   know, have another year of $300 million EPF,

 8   another $500 million towards the $3 billion

 9   Clean Water Infrastructure Act, a ban on

10   polystyrene foam -- which are the packing

11   peanuts and single-service food products -- a

12   stronger wetlands law, and continuing our

13   $1 billion Superfund.

14         DEC's budget would increase to

15   $464.7 million, and our staffing would

16   increase to 3,162.   And that's very

17   important.   That's up 250 since my first year

18   as commissioner.   So --

19         (Interruption from protesters.)

20         CHAIRWOMAN KRUEGER:    {Inaudible.}

21         (Interruption continuing.)

22         CHAIRWOMAN KRUEGER:    Okay.   Guys,

23   you're welcome to take the protest outside --

24         (Interruption continuing).
                                                              22

 1            CHAIRWOMAN KRUEGER:        Okay.   Everybody,

 2   you can go back to your seats and listen, or

 3   you can leave.    The folks protesting don't

 4   get to testify later.       Okay?

 5            (Interruption continuing.)

 6            CHAIRWOMAN KRUEGER:        Guys, come on.

 7   Okay, everybody agreed to stop, but you're

 8   not stopping, so the State Police are coming.

 9            (Loud chanting continues as protesters

10   exit.)

11            COMMISSIONER SEGGOS:       I still have six

12   minutes left on my counter.

13            (Laughter.)

14            CHAIRWOMAN KRUEGER:        We've been joined

15   by Senator Robert Jackson and Senator Julia

16   Salazar.

17            And we've also been joined by

18   Assemblywoman Deborah Glick and Assemblywoman

19   Jo Anne Simon, so there's more people to

20   listen to the remainder of your testimony.

21   Thank you.

22            (Loud chanting.)

23            CHAIRWOMAN KRUEGER:        All right, done.

24   Go.   Bye.   Go yell at the Governor.
                                                        23

 1         (Laughter.)

 2         COMMISSIONER SEGGOS:     So I said I have

 3   six minutes left, Senator.     I think I might

 4   take that -- I will not.

 5         I am glad I came back.     And listen,

 6   this is really a final note.    This is our

 7   fiftieth year as an agency.    We were founded

 8   the first Earth Day when people just like

 9   that were complaining about the damage done

10   to our environment and the lack of action at

11   the federal and state level and every level,

12   for that matter.

13         So yes, this year I intend to fully

14   celebrate that progress that we've made over

15   the last 50 years.   But my focus, the

16   Governor's focus, frankly, is in looking

17   forward.    I don't begrudge the protesters and

18   what they brought to the room today.     I might

19   quibble with some of their facts and their

20   language.    But they are voicing I think what

21   we've all seen now internationally:    Fear.

22   Since their governments have let them down,

23   they need an outlet for their voices.

24         I actually tend to stand with them in
                                                       24

 1   some ways, that we need to completely rethink

 2   the way we are approaching the environment,

 3   approaching the world, and approaching our

 4   societies.   Because you know what?   It's been

 5   the 10 hottest years on record.   There are

 6   fires burning in Australia, there's droughts

 7   all across the world, there's floods

 8   impacting communities.   They're right.     And

 9   we all should take that to heart.

10          And I know the Governor is.    And I

11   know that to have the Governor do, in this

12   budget and this State of the State, what he

13   has done to prioritize environmental spending

14   so that in the long run New York exists as a

15   state, is exactly what should be done right

16   now.   So I think we use their energy, we

17   clarify the facts, clarify the numbers and

18   use some better language.

19          But I'm looking forward to having a

20   good exchange with you today, looking forward

21   to your questions, and I turn it over to you.

22   Thank you.

23          CHAIRWOMAN KRUEGER:   Thank you.   Ready

24   for questions?
                                                      25

 1         COMMISSIONER SEGGOS:   Absolutely.

 2   Thank you.

 3         CHAIRWOMAN KRUEGER:    Okay, we'll start

 4   out with Senator Todd Kaminsky, the chair of

 5   Environmental Conservation for the Senate.

 6         SENATOR KAMINSKY:   Hi, Commissioner.

 7   How are you?

 8         COMMISSIONER SEGGOS:   Good, Senator.

 9         SENATOR KAMINSKY:   I just want to ask

10   you about the Climate Action Council.   We

11   obviously thought it was a priority enough to

12   want to do it before the end of last session,

13   and yet it has not taken shape.   So can you

14   tell us where we are, what the future holds,

15   how soon they'll be meeting and getting their

16   work done?

17         COMMISSIONER SEGGOS:   Sure.   And we'll

18   be making our appointments shortly on that.

19         You know, when the Governor signed the

20   law last year, we actually began working

21   immediately.   Both Co-Chair Alicia Barton and

22   I assembled our teams in the 10 other

23   agencies that are involved in the Climate

24   Action Council to begin putting a framework
                                                       26

 1   in place to meet the law.

 2           We know that once January 1st hit this

 3   year that 2020 is going to be an extremely

 4   busy year on the Climate Action Council.     We

 5   intend to have our first meeting as soon as

 6   possible after the final appointments are

 7   made.   We'll probably meet on a regular basis

 8   throughout the course of this year.

 9           We have a very tight time frame to

10   turn around a draft scoping plan and then

11   obviously a final scoping plan in 2022.

12           You know, our efforts last year,

13   primarily through NYSERDA, to make an

14   offshore wind commitment, solar across the

15   state -- and you see within this budget an

16   extraordinary statement of the Governor's

17   intent to keep investing in projects, not to

18   wait for necessarily the scoping plan, but to

19   begin that work immediately.

20           I, for one, am looking forward to this

21   body convening.   It's a fantastic body.   The

22   appointments have been very strong.   And we

23   will -- we'll be meeting and talking shortly.

24           SENATOR KAMINSKY:   Do you know when
                                                       27

 1   you'll have nominees -- do you know when

 2   you'll have appointees for the -- the

 3   Governor's office will have appointees?

 4          COMMISSIONER SEGGOS:     Very shortly.

 5          SENATOR KAMINSKY:    With respect to the

 6   bond act, I think there's a lot of excitement

 7   behind that, but I think there's a lot of

 8   questions about what is in and what is not

 9   in.   Can you give us some guidance on

10   projects you think fall into it, what

11   projects would fall out of it, and how we go

12   about thinking throughout the budget process

13   how we tighten that up so voters have a good

14   idea what their votes and what our state's

15   money will be going toward?

16          COMMISSIONER SEGGOS:     Sure.   The

17   language that the Governor used in the budget

18   was broad, but we specified some categories

19   of projects that we think would address the

20   core need.    Right?   The damage done from

21   flooding, loss of habitat around the state,

22   the need to improve our state and prepare for

23   the future.

24          So things like tidal wetland
                                                      28

 1   restoration, increasing by thousands of acres

 2   tidal wetlands along Long Island and New York

 3   City.   Freshwater wetlands upstate, in

 4   conjunction with the proposed freshwater

 5   wetlands line that we'll talk about today.

 6   Reconnecting streams.   Right?   So many

 7   streams around New York State that are

 8   horribly flooded are cut off because of

 9   either old dams or culverts.     We'd like to

10   remove as many of those as possible and

11   restore thousands of miles of stream.

12           Our fish hatcheries are in a state

13   of -- well, some of them are in relatively

14   good shape, but some are not.    And we need a

15   long-term investment in our fish hatcheries.

16           And those are the kinds of

17   categories -- you know, land acquisition.

18   Obviously, putting a focus on land

19   acquisition for the purpose of resiliency

20   will be a core focus of this.    And making

21   sure that when we look at the bond act and

22   what it can bring, what we're asking

23   ultimately the voters to approve is

24   integrating the bond act into all of our
                                                      29

 1   other programs.   And it's a very important

 2   point because we have a $300 million EPF,

 3   we've got the Clean Water Infrastructure Act

 4   that we worked on together.   We've got the

 5   Superfund law that we have.   We have NY Works

 6   at DEC and other agencies.

 7         So I think integrating all of those

 8   other programs into the bond act, really

 9   around the bond act, makes for a very

10   comprehensive approach.

11         SENATOR KAMINSKY:    And do you agree

12   that in light of being on the front lines of

13   climate change, storm surge, having issues

14   with tidal wetlands, habitat restoration,

15   et cetera, that Long Island will qualify --

16   should qualify for a number of projects

17   coming out of the bond act to help it deal

18   with the very problems it's meant to address?

19         COMMISSIONER SEGGOS:    Oh, no doubt

20   about it, Senator.   I mean, I joined right

21   before Superstorm Sandy and saw the damage

22   done down there, and now we've been

23   rebuilding for the last eight years there.

24         You know, the water quality conditions
                                                       30

 1   on Long Island, the loss of tidal habitat,

 2   the loss of some open space in some areas --

 3   I mean, those are all the kinds of things

 4   that we would look to focus on.   And

 5   certainly Long Island, with the number of

 6   problems that it has environmentally and the

 7   population that is down there, we would be

 8   focusing significant attention down there.

 9         SENATOR KAMINSKY:   I appreciate that.

10         One of the things also mentioned in

11   the language is a study about Nassau County

12   studying the feasibility of having access to

13   New York City water, in light of emerging

14   contaminants and other things.

15         But many of us have searched for this

16   study in the budget and have not found it.

17   So I'm hoping you'll be able to tell us what

18   funding might be available for the study, how

19   long you think it should take, and what it

20   involves.   Because there's a lot of interest

21   on Long Island, but it's kind of hard to find

22   details on it.

23         COMMISSIONER SEGGOS:   Right.     So this

24   is something that DEC and DOH will jointly
                                                       31

 1   work on.   There's no specific preparation in

 2   the budget for it, but we have the resources

 3   within our existing Clean Water

 4   Infrastructure Act and other pots that we

 5   would draw upon to conduct the study.

 6         I agree it's an important study.     At a

 7   bare minimum, looking at the possibility, the

 8   long-term possibility of tapping into the

 9   New York City system would provide great

10   redundancy for Long Island, and also solving

11   some issues with contamination in certain

12   water districts.   But that will be a good

13   study, and we'll get that going very quickly,

14   understanding that it's a priority for

15   Long Islanders.

16         SENATOR KAMINSKY:   Thank you.    I hope

17   we can get more clarity, as the budget

18   process develops, over that.

19         With respect to Styrofoam and the

20   polystyrene ban in the budget, there's also

21   language in there that I had concern with

22   that says we're going to ban this and future

23   studies and bans, depending on what DEC

24   believes needs to be banned.
                                                      32

 1           Can you tell us what authority you're

 2   seeking in the budget and what that would

 3   mean?   Would that mean that if that is

 4   granted, that anything DEC decides and

 5   studies is a product that is dangerous to

 6   New York, you could just ban it without

 7   legislative authority?

 8           COMMISSIONER SEGGOS:    Well, as the

 9   polystyrene being, yes, banned, we're looking

10   at authority through the Legislature to be

11   able to treat -- to ban single-use

12   polystyrenes -- you know, cups, plates and so

13   forth -- as well as packaging materials.

14           And seeking broader authority to be

15   able to ban other items that may present a

16   challenge for us from a landfill perspective,

17   human health perspective, or pollution in the

18   long term.   It wouldn't be something that DEC

19   would do without any kind of -- on its own

20   administrative authority.      We would look

21   obviously through the regulatory process to

22   make a very public process through any future

23   items that we would like to get out of the

24   waste stream.
                                                      33

 1         And I think in a way it's designed to

 2   accelerate our efforts to reduce the impacts

 3   of waste here in New York State and allow us

 4   to be a little more nimble with how we

 5   approach things like the plastic bag ban last

 6   year, this year it's polystyrene, but there

 7   may be other issues in the future where we

 8   need to move quickly and more effectively.

 9         SENATOR KAMINSKY:   Okay.   With respect

10   to extended producer responsibility, I was

11   personally happy to see the carpets and

12   mattresses in here.   But I do believe that in

13   light of issues that we are having with

14   glass, with our MRFs having financial strain,

15   that we could do a lot more of a robust EPR

16   effort like they're done in other countries

17   and beginning in other parts of the state.

18   So I'd like to get your thoughts on your

19   willingness to do that or your openness to

20   working with the Legislature to establish a

21   more robust form of extended producer

22   responsibility.

23         COMMISSIONER SEGGOS:   Well, listen,

24   thank you, Senator.   And I think we're
                                                       34

 1   obviously more than willing to work with you

 2   on any ideas that you have.

 3           The idea of extended producer

 4   responsibility approaching waste streams like

 5   that is a really important one.    We know that

 6   it works with carpets and mattresses, for

 7   example.   California, Rhode Island,

 8   Connecticut do that very effectively, and

 9   they put the burden really back on the

10   manufacturer as opposed to on the consumer,

11   which has a very important function of

12   incentivizing reduction of waste and using

13   recycled material.

14           So if we can get that done this year

15   and obviously get that massive amount of

16   waste out of the waste stream --

17   surprisingly, it's a million mattresses a

18   year and like 120,000 pounds of carpet that's

19   going to our overly taxed landfills already.

20   So any work we can do to reduce those streams

21   and others, we would be appreciative of that

22   authority.

23           SENATOR KAMINSKY:   Okay, I appreciate

24   that.
                                                       35

 1         And with respect to some issues

 2   surrounding the Bottle Bill, do you agree

 3   with the statement that there's massive fraud

 4   surrounding the Bottle Bill that New York can

 5   do more to combat?

 6         COMMISSIONER SEGGOS:     There's no

 7   question that there's fraud surrounding the

 8   Bottle Bill.   We've got I think something

 9   upwards of a thousand investigations over the

10   last five years on the Bottle Bill --

11   71 consent orders, $1.2 million in fines and

12   penalties.

13         So it is a significant issue.     We have

14   our Environmental Conservation Police

15   Officers, both uniformed and undercover, on a

16   number of investigations as we speak.    And I

17   need to treat that significantly.     That's

18   money that should be going to New Yorkers and

19   it's not.    Fraud is -- I wouldn't

20   characterize it as rampant, but it's there

21   and we have to deal with it.

22         SENATOR KAMINSKY:    Okay.   And lastly,

23   a last question surrounding the Adirondacks.

24   Can you give us assurances that the
                                                         36

 1   stewardship money for rebuilding and

 2   reconstituting trails is going to be there at

 3   the end of the day to help those repairs in

 4   light of the overuse, as opposed to being

 5   swept up in the budget process into other

 6   areas?

 7            COMMISSIONER SEGGOS:   Absolutely.   One

 8   of my top priorities.    I mean, you see the

 9   Adirondacks getting this incredible amount of

10   use right now.    And it's a good thing; I'd

11   like to say publicly it's a good thing for

12   the Adirondacks to get that use, but we have

13   to make sure that when people get there it's

14   safe for them and the trails aren't being

15   damaged.

16            So yes, that's the purpose of the

17   increase in stewardship.   I want to get

18   sustainable trail crews out there.     We think

19   by -- through this proposal we have the

20   opportunity to triple our effectiveness on

21   trail building this coming year, when you

22   match up the new crews that we're proposing

23   with existing crews we have and some of the

24   student crews that are out there.
                                                      37

 1          It's something we have to do.    We've

 2   got to meet this challenge of increased use

 3   and make sure people have safe trips up in

 4   the woods and they want to come back because

 5   the trails are in good shape.    And that's

 6   a -- it's a top priority of mine.

 7          SENATOR KAMINSKY:   Thank you.   I look

 8   forward to working with Chairman Englebright

 9   and you during this budget process to get

10   good things done for our state.

11          COMMISSIONER SEGGOS:    Thank you.

12          CHAIRWOMAN KRUEGER:     Thank you.

13          Assembly.

14          CHAIRWOMAN WEINSTEIN:    Thank you.

15          We're going to go to the chair of our

16   EnCon Committee, Assemblyman Steve

17   Englebright.

18          ASSEMBLYMAN ENGLEBRIGHT:    Thank you,

19   Madam Chair.

20          Good morning, Commissioner.

21          COMMISSIONER SEGGOS:    Good morning,

22   sir.

23          ASSEMBLYMAN ENGLEBRIGHT:    I have a

24   number of questions that come from your
                                                        38

 1   testimony and the budget.    But the first

 2   question, does your agency have the staffing

 3   resources that it needs to fulfill all of its

 4   permitting and oversight obligations and to

 5   carry out this budget?

 6         COMMISSIONER SEGGOS:     Absolutely.     I

 7   mean, since I came into this job in 2015,

 8   late 2015, we're actually up by 250 staff.

 9         Those increases the Governor tied to

10   the evolution of this job, that DEC in 2015

11   is much different than DEC in 2020.    We've

12   taken on the Climate Leadership Act; the REDI

13   Commission up on Lake Ontario, which is

14   rebuilding the shorelines up there; the Clean

15   Water Infrastructure Act; Superfund.

16         I mean, we have been making increases

17   to match the changes in the agency, the

18   changes in the field.    And I have no doubt

19   that we have the staff right now to carry out

20   this mission.

21         ASSEMBLYMAN ENGLEBRIGHT:    I'm looking

22   at an optimist.

23         COMMISSIONER SEGGOS:     You have to be.

24         ASSEMBLYMAN ENGLEBRIGHT:    I would note
                                                      39

 1   that you've lost almost a third of the

 2   personnel in your agency over the last

 3   decade, and your obligations have increased,

 4   and as you rightly just pointed out.     And

 5   we're now looking at taking on the world,

 6   literally, in the sense of the climate change

 7   challenge.

 8         So I would just urge you to take

 9   another look at that aspect of the budget,

10   the personnel aspect.   I believe we would be

11   receptive to a conversation to add personnel,

12   but I don't believe that we can do that if

13   you tell us that you don't need anybody,

14   everything is just swell.

15         COMMISSIONER SEGGOS:    Well, I don't

16   want to say we don't need anybody.    In fact,

17   this budget does have an increase of 47

18   staff, and that's to be applied to the

19   Climate Leadership Act work, which will be

20   significant on this agency, as well as the

21   REDI Commission.   Again, these are natural

22   resource folks, attorneys and whatnot, to

23   help us rebuild the shoreline in a

24   sustainable way on the north coast.
                                                        40

 1           So we do have an increase this year in

 2   the budget.   I'm grateful for that.

 3           ASSEMBLYMAN ENGLEBRIGHT:   Thank you.

 4           Is there a reason to be concerned

 5   about the long-term fiscal health of the EPF?

 6   And within that context, why does language in

 7   the Executive Budget again -- surprisingly,

 8   after last year -- allow for EPF money to be

 9   used for personnel services?    Do we really

10   have to revisit this again?

11           COMMISSIONER SEGGOS:   Well, as to the

12   long-term financial health of the EPF, I

13   don't believe there's a reason to be

14   concerned at all about it.     When I first came

15   in, it was -- we were celebrating a

16   $5 million increase, from 134 to 139.    Now we

17   have a $300 million EPF; we've had that every

18   year.   The Governor has talked about it

19   repeatedly.   I understand that, you know,

20   this is really a top priority for the entire

21   environmental community, and we'll keep doing

22   that.

23           As to the second part of your

24   question, personal services, I mean, we're
                                                     41

 1   proposing a nominal application of personal

 2   services to the EPF for the purposes of staff

 3   that work on EPF issues.   So, much in line

 4   with how we apply staff to the Clean Water

 5   Infrastructure Act, Superfund, NY Works,

 6   other capital pots, that helps us more

 7   effectively run those programs.

 8         ASSEMBLYMAN ENGLEBRIGHT:    The CLCPA

 9   requires state agencies and authorities to

10   invest no less than 35 percent of the overall

11   benefits of certain spending to disadvantaged

12   communities.   How much funding does the

13   Executive Budget contain for this purpose?

14         COMMISSIONER SEGGOS:    Well, as you

15   know, moving forward, the Governor has said

16   we have a $33 billion five-year plan on

17   climate.   The Climate Leadership Act will

18   require us to ensure that the benefits of our

19   spending accrue at least 35 percent, with a

20   goal of 40 percent in disadvantaged

21   communities.

22         Now, this year as we now convene as a

23   climate council, we have a couple of jobs

24   ahead of us:   First, defining the
                                                         42

 1   disadvantaged communities and, second, begin

 2   establishing a way to track how we spend

 3   those dollars so in fact that will be done in

 4   a transparent process through the CLCPA.      And

 5   that will be a way in which we will meet

 6   those targets.

 7           Now, this budget, as you know, we

 8   through the Environmental Protection Fund

 9   have had an environmental justice line.     That

10   line has been very well subscribed for the

11   last few years.   That will be a $7 million

12   line, and we'll ensure that that spending

13   gets done and gets integrated, frankly, with

14   some of the work that will be coming out of

15   the climate leadership -- the Climate Action

16   Council.

17           So it's a core component of the CLCPA,

18   and we'll make sure that it gets done this

19   year.

20           ASSEMBLYMAN ENGLEBRIGHT:   I'd like to

21   follow up.   Senator Kaminsky's first question

22   was about how you are going to go about

23   implementing the CLCPA in the larger sense.

24   And I think that I'd just like to dovetail
                                                     43

 1   with that a little bit.

 2         You've mentioned that you have a

 3   five-year program.   How does that fit into

 4   the CLCPA?   What's the context, I guess, of

 5   your goal-setting within the context of the

 6   goals that are statutory?

 7         And you have mentioned the $33 billion

 8   for renewable energy, but the largest -- and

 9   of course that's a good start, but the

10   largest sources of emissions are vehicles and

11   buildings.   Those two together are something

12   approaching three-quarters of the problem.

13         It's convenient to go after renewable

14   energy, because we regulate it very heavily

15   and so we have a good handle on it.   It's

16   also a good place to start because the basis

17   of everything really needs to be

18   electricity-based.   So I'm not questioning

19   the wisdom of beginning there, but I am

20   wondering whether you can give us some

21   specifics as to how you're going to

22   tactically and strategically approach

23   knocking back these challenges that we have

24   of air emissions.
                                                        44

 1         COMMISSIONER SEGGOS:       Sure.   Well, I

 2   couldn't agree with you more.     I use the term

 3   "renewable energy" in a generic sense.

 4   Obviously, if you unpack the $33 billion in

 5   the way the Governor did on the slide during

 6   the State of the State, it recognizes that

 7   front and center.   The MTA is transitioning

 8   its fleet towards renewables, the Governor --

 9         ASSEMBLYMAN ENGLEBRIGHT:      They're

10   buying diesels.

11         COMMISSIONER SEGGOS:       The Governor

12   will be -- will be --

13         ASSEMBLYMAN ENGLEBRIGHT:      The MTA is

14   buying like 25 diesel locomotives.

15         COMMISSIONER SEGGOS:       Well, I'm

16   talking about buses.    And --

17         ASSEMBLYMAN ENGLEBRIGHT:      I'm talking

18   about the diesel locomotives.     I'm very

19   dismayed about that.

20         COMMISSIONER SEGGOS:       There's

21   $1.5 billion for electric buses and charging

22   stations.   That's what's being projected.

23   And a number of other really important

24   things -- EVolve NY.    Again, my counterparts
                                                       45

 1   will talk about that.    That's upstate fleets,

 2   moving upstate bus fleets to renewables, it's

 3   the top five largest upstate bus fleets --

 4   25 percent by 2025, 100 percent by 2035.

 5          I think the -- to get to the essence

 6   of your question at the outset was, you know,

 7   the $33 billion, how will that dovetail

 8   nicely with the CLCPA.    I think very

 9   importantly it gets us off immediately, while

10   the work of the CAC is underway -- the

11   calendar of the CAC is sort of a

12   two-plus-year lifetime.    We're talking about

13   beginning the investments we need to make,

14   transportation, renewables, and then have the

15   CAC create this whole government scoping

16   plan, whole economy scoping plan so that we

17   can take into such things as, you know, how

18   we keep our farms sustainable and how we keep

19   our land sustainable.    Really, the entire

20   economy and how it looks and how it feels.

21          So that's the intersection between the

22   two.   To have the resources right away, as

23   opposed to just be talking for two years, is

24   an amazing place to be in right now.     And to
                                                      46

 1   have the Governor stand up and say

 2   $33 billion will be set aside for this and

 3   directed towards this -- in this day and age,

 4   with a $6 billion deficit and what's

 5   happening at the federal level, is an

 6   incredible statement of the state's

 7   commitments.

 8         ASSEMBLYMAN ENGLEBRIGHT:   Thank you.

 9         I just want to compliment the Governor

10   for leading his budget presentation with the

11   environment and compliment our legislative

12   leaders for leading with the environment in

13   our hearing here today.

14         COMMISSIONER SEGGOS:   Absolutely.

15         ASSEMBLYMAN ENGLEBRIGHT:   Mr. --

16   President Trump has assaulted wetlands within

17   the last week.   Are you open to a

18   conversation with legislative leaders to see

19   what we can do to make sure that we don't

20   slide backwards in wetlands protection and

21   take action in that direction?

22         COMMISSIONER SEGGOS:   Absolutely.    In

23   fact we have a proposal in front of you now

24   to amend the Environmental Conservation Law
                                                           47

 1   to strengthen wetlands protections.         In fact

 2   by removing the mapping obligation, that

 3   immediately gives rise to the possibility of

 4   about a million additional acres of wetlands

 5   that are larger wetlands, and gives us a

 6   chance to also add wetlands of unusual

 7   importance locally that are less than 12.4

 8   acres.

 9            So yes, we are alarmed at what

10   happened at the federal level and yes, we are

11   very much open to a conversation with you as

12   to how to plug that hole.

13            ASSEMBLYMAN ENGLEBRIGHT:    I appreciate

14   that, Commissioner.    Thank you very much.

15            Thank you.

16            CHAIRWOMAN WEINSTEIN:     Thank you.

17            We just have to --

18            CHAIRWOMAN KRUEGER:     There was a

19   little clock something, but you got your

20   10 minutes all together.

21            CHAIRWOMAN WEINSTEIN:     Right.

22            Before we move on to Senate

23   questioners, we have a number of

24   Assemblymembers that have joined us:
                                                       48

 1   Assemblyman D'Urso, Assemblyman McDonald,

 2   Assemblywoman Buttenschon, Assemblywoman

 3   Griffin, Assemblywoman Barrett, and

 4   Assemblyman Fall.

 5         So while they get the clock set, we'll

 6   move on to the Senate.

 7         CHAIRWOMAN KRUEGER:     And actually

 8   we've been joined by Senator May as well.

 9         And when we get the clock set, which

10   will be for five minutes, for Senator Boyle.

11         CHAIRWOMAN WEINSTEIN:     Just a couple

12   more members.

13         CHAIRWOMAN KRUEGER:     Certainly.

14         CHAIRWOMAN WEINSTEIN:     So a couple of

15   members who have joined us.    Assemblyman

16   Schmitt, Assemblyman Walczyk, and Assemblyman

17   Aubry I just saw walk in.

18         Thank you.    So now on to the Senate.

19         CHAIRWOMAN KRUEGER:     That's okay.   So

20   I want to give Senator Boyle back his

21   11 seconds --

22         (Laughter.)

23         SENATOR BOYLE:     That's okay.   I won't

24   take that long.
                                                         49

 1            CHAIRWOMAN KRUEGER:    Thank you.

 2   Senator Phil Boyle --

 3            SENATOR BOYLE:   Thank you, Madam

 4   Chairwoman.

 5            CHAIRWOMAN KRUEGER:    -- the ranker for

 6   EnCon.

 7            SENATOR BOYLE:   Thank you.

 8            Thank you, Commissioner, and thank you

 9   for coming.

10            COMMISSIONER SEGGOS:   Thank you,

11   Senator.    Good to see you.

12            SENATOR BOYLE:   I wasn't going to ask

13   this question, but in light of the recent

14   protests, are we looking at a Green New Deal

15   for New York State?    Or how would you feel

16   about something on a state version of what

17   they're talking on the federal level?

18            COMMISSIONER SEGGOS:   Well, I think we

19   have that, frankly.    I think -- we worked

20   last year with you very closely to pass the

21   nation's most aggressive climate law.

22   There's no doubt about it, that it puts the

23   state on a very ambitious course to reduce

24   our carbon emissions.
                                                       50

 1            And what we're talking about now is

 2   backing that up with substantial investments.

 3   So the exchange I just had with Assemblyman

 4   Englebright I think is part and parcel with

 5   that.    We need to -- we need to have this, we

 6   need to have the Climate Action Council

 7   present an economy-wide plan for the state.

 8   But we don't need to wait for that to begin

 9   making those announcements.

10            In fact, the very day that the

11   Governor signed the law down in New York

12   City, we also announced the offshore wind --

13   the very exciting offshore wind announcement.

14            So I think we do have a Green New Deal

15   for New York.    I think the Climate Leadership

16   Act -- the CLCPA is appropriately ambitious,

17   in that it requires us to look really

18   economy-wide and really leave no sector

19   behind.

20            And also how do we capitalize on the

21   opportunities of this movement.   Right?   This

22   is an amazing jobs opportunity for New York

23   State.    There are working groups that we'll

24   be forming under the Climate Action Council
                                                      51

 1   that will advise us on that, how we protect

 2   jobs in New York, how we grow jobs in

 3   New York.   And in my view that is a Green

 4   New Deal.   When you can present to the people

 5   jobs and a healthy environment and lead the

 6   nation, that's a pretty good deal.

 7         SENATOR BOYLE:   Thank you.    And those

 8   of us on Long Island are very excited about

 9   the offshore wind initiative, so thank you

10   very much for that.

11         COMMISSIONER SEGGOS:     Thank you.

12         SENATOR BOYLE:   Regarding the

13   $3 billion "Restore Mother Nature" Bond

14   Act -- I know you talked a little bit about

15   it -- have you had discussions about actual

16   projects yet or -- can you speak to that, or

17   is it still in the works?

18         COMMISSIONER SEGGOS:     Well, I mean,

19   certainly aware of the kinds of projects that

20   we could fund with this.    Obviously the

21   projects need to be bondable, so they need to

22   be durable and they need to last.

23         My view on this is the Governor has

24   put some goalposts out there, right --
                                                       52

 1   restoring habitat, protecting against

 2   flooding, putting shellfish in the water at a

 3   more aggressive rate.     But we need to hear

 4   from the public as well.    I think what's been

 5   really effective, under the Governor's

 6   leadership, has been such things like the

 7   REDI Commission, where we heard locally what

 8   the problems were, the REDC, that model of

 9   kind of bottoms-up thinking.

10         The idea for, again, approaching the

11   voters with this in November is we need to be

12   able to communicate what this bond act means

13   for them.   So talking locally about this will

14   be very important for all of us.     And I'm

15   confident that the way that the language has

16   been put in there in a somewhat general way

17   gives us the flexibility to do an enormous

18   amount of work with it.

19         SENATOR BOYLE:    Okay.    And a little

20   bit of a parochial issue, my entire Senate

21   district is within a couple of miles of the

22   Great South Bay.   And your initiative of

23   200 million shellfish, do you have a time

24   frame for that or what you're --
                                                      53

 1          COMMISSIONER SEGGOS:    For the

 2   shellfish initiative?

 3          SENATOR BOYLE:   Yeah, exactly.

 4          COMMISSIONER SEGGOS:    Well, that's

 5   rolling.   I mean, we had --

 6          SENATOR BOYLE:   About ending it.   Any

 7   idea when it would be finished or --

 8          COMMISSIONER SEGGOS:    We are actually

 9   proposing to double the shellfish initiative.

10   So we've done a significant amount of

11   planting all across Long Island already,

12   reaching 200 million plantings, and the

13   Governor has said that he wants to reach

14   400 now.   And that would be part of the

15   "Restore Mother Nature" Bond Act.

16          SENATOR BOYLE:   Okay, great, thank

17   you.

18          And lastly, obviously the Governor a

19   number of years ago, five or six years ago,

20   had a moratorium on fracking through

21   executive order, and now it's in the

22   legislative aspect through the budget.     Is

23   there a reason that you decided, after six

24   years, to go through legislation?
                                                        54

 1           COMMISSIONER SEGGOS:     Well, I think

 2   hindsight has proven that we were right to do

 3   this.   If you look at the damage done to

 4   other states and their watersheds, the

 5   communities, and how disruptive fracking has

 6   been, we decided back then to -- for a

 7   variety of reasons, health and environmental,

 8   to say no.

 9           And I think this is a statement of the

10   state's position that there is no place for

11   fracking in New York State, that gas should

12   be kept in the ground and we need to protect

13   our watersheds and our communities.      So this

14   is an attempt to make this permanent.

15           SENATOR BOYLE:   Okay.    Thank you,

16   Commissioner.

17           COMMISSIONER SEGGOS:     Thank you.

18           SENATOR BOYLE:   Thank you.

19           CHAIRWOMAN KRUEGER:      Assembly.

20           CHAIRWOMAN WEINSTEIN:     Assemblywoman

21   Lifton.

22           ASSEMBLYWOMAN LIFTON:      Thank you.

23           Good morning, Commissioner.

24           COMMISSIONER SEGGOS:     Good morning.
                                                       55

 1         ASSEMBLYWOMAN LIFTON:      I'm going to

 2   have to talk to whoever runs the state

 3   government.   The acoustics in here are still

 4   problematic, I think.   I can understand my

 5   colleagues well, I -- I don't know whether

 6   it's whether you speak -- do you come from

 7   New York City, Mr. Seggos? -- whether you

 8   speak quickly, like many of my New York City

 9   colleagues do.

10         COMMISSIONER SEGGOS:    I'll slow down.

11         ASSEMBLYWOMAN LIFTON:    It's just that

12   you're trying to say a lot quickly, so I'm

13   missing some of your answers, so I apologize

14   that I may be a bit redundant.

15         COMMISSIONER SEGGOS:    There's more of

16   an echo this year, yeah.

17         ASSEMBLYWOMAN LIFTON:    And it could be

18   my aging ears, of course, too.    That's always

19   an issue.

20         Mr. Commissioner, I'm sitting here,

21   I'm not out there in front of you or in the

22   aisles, but I share the deep concern and

23   worry that was demonstrated by the

24   New Yorkers who came to protest this morning
                                                        56

 1   and let their voices be heard.    And I'm a

 2   little frustrated that we're not already

 3   seeing appointments.

 4         I know this was asked, but I didn't

 5   quite hear your answer.    This bill got signed

 6   last year, in June.    Is there some reason for

 7   the delay on appointments and getting this

 8   Climate Action Council actually meeting and

 9   working?

10         COMMISSIONER SEGGOS:     We'll be

11   making -- as I told the Senator, we'll be

12   making those appointments very shortly.    And

13   as soon as --

14         ASSEMBLYWOMAN LIFTON:      Like this week,

15   maybe, we'll see some --

16         COMMISSIONER SEGGOS:     I don't know

17   whether it's going to be this week or next,

18   but we'll be making the appointments very

19   quickly and then, shortly thereafter,

20   convening our first meeting.    So that's my

21   intent.

22         ASSEMBLYWOMAN LIFTON:     Is there any

23   date set yet for the first meeting?

24         COMMISSIONER SEGGOS:     We don't have a
                                                        57

 1   date set.     Obviously we'll have to reach out

 2   to gauge the schedules of all the appointees,

 3   some of whom will be traveling from far away.

 4            ASSEMBLYWOMAN LIFTON:    Okay.   Again,

 5   we all agree this is an urgent matter, and we

 6   want to take leadership here in New York and

 7   show that leadership in everything we do, I

 8   hope.

 9            HABs.   You know, I'm from the Finger

10   Lakes.    Cayuga Lake is my big lake there, and

11   I'm hearing like a lot of concern still, I

12   mean ongoing, about the HABs issue -- in

13   fact, growing concern.     We had severe

14   outbreaks again this summer, we had to shut

15   down beaches, waterways, recreational

16   activities were interrupted, homeowners are

17   very -- are unhappy and concerned.

18            And what I'm understanding is that we

19   still -- the DEC keeps telling us they're

20   going to have a TMDL for us, we were told end

21   of October.      It's my understanding, am I

22   right, that we really can't go ahead, it's --

23   we really don't have a plan in place, people

24   aren't able to do specific, discrete,
                                                         58

 1   concerted work until we have that TMDL for

 2   our lake.    And I assume -- I don't know how

 3   many other lakes this applies to; many, I

 4   assume.     Tell me -- can you tell me when

 5   we're going to get the TMDL for Cayuga Lake,

 6   first of all, and maybe speak to it a little

 7   more broadly in it -- maybe why it takes so

 8   long, apparently, to do these things.

 9            COMMISSIONER SEGGOS:    Mm-hmm.   And I

10   did check with my staff last week about the

11   TMDL in Cayuga Lake.    We are probably a

12   couple of weeks away from putting that out

13   for comment.    TMDLs are, by their nature,

14   extraordinarily complicated and intensive, so

15   they take a bit more than, say, a

16   nine-element plan, which is another approach

17   to a waterway.

18            ASSEMBLYWOMAN LIFTON:    I'm sorry, what

19   did you call that?

20            COMMISSIONER SEGGOS:    The nine-element

21   plans.    For example, we have one of those

22   underway on --

23            ASSEMBLYWOMAN LIFTON:    Skaneateles.

24            COMMISSIONER SEGGOS:    -- Skaneateles,
                                                        59

 1   exactly.

 2         A TMDL is far more intensive.      It uses

 3   much more data and, you know, presents really

 4   a pollution budget for a waterway.     That's

 5   not to say that we're not trying to get that

 6   out as quickly as possible.   But really in

 7   the next couple of weeks you'll see something

 8   on that.   We'll let you know.

 9         ASSEMBLYWOMAN LIFTON:      Is that data

10   all stuff DEC is collecting or -- I know we

11   have some people, some groups out there,

12   not-for-profits, that are collecting data.

13   Is that data coming into DEC, and is that

14   being used at DEC?

15         COMMISSIONER SEGGOS:    We would seek to

16   bring in as much data as is possible.    And

17   ultimately if it passes quality assurance,

18   quality controls in the way that it was

19   collected and presented and analyzed, then it

20   would meet our criteria for review.

21         I would say, just more generally on

22   harmful algal blooms, it's something that

23   we're taking extraordinarily seriously.    We

24   launched the harmful algal bloom summits a
                                                      60

 1   couple of years ago, which guided our

 2   investments around the state.

 3         We've now made $187 million worth of

 4   watershed protection investments specifically

 5   for HABs across the state.    We've also been

 6   pioneering some new technologies to use when

 7   a HAB happens, that we can quickly hit it and

 8   respond to it and reduce the threat.

 9         This is not just a New York problem,

10   it's a national issue.   I don't think there's

11   a state doing for HABs what we're doing at

12   this stage.   But, you know, until we address

13   climate change and severe weather, I think

14   we're still going to be behind the eightball

15   on HABs.   Getting these investments out there

16   quickly, protecting watersheds, improving

17   septic systems, wastewater, and working with

18   farms -- all of that work is going to have to

19   come into play in the coming year.

20         ASSEMBLYWOMAN LIFTON:     We're going to

21   have to put up with this problem for a lot

22   longer, it sounds like you're saying.

23         COMMISSIONER SEGGOS:    For the TMDLs?

24         ASSEMBLYWOMAN LIFTON:     For the HABs.
                                                     61

 1         COMMISSIONER SEGGOS:    Oh, no, I --

 2   listen, I think HABs are going to be a

 3   problem for many waterways nationally.      I

 4   think that in New York we -- based on the

 5   monies that we've been able to get through

 6   the Legislature and the Clean Water

 7   Infrastructure Act, through the Environmental

 8   Protection Fund, that we're going to put

 9   these watersheds that have persistent

10   problems in a much better place.   The TMDL

11   will help to get us there on Cayuga.

12   Skaneateles, like the same problems that

13   we're seeing there, I believe we can address

14   more quickly because we have the strength of

15   the Legislature and the budget behind us, not

16   just the science on knowing where it happens

17   and when it happens.

18         ASSEMBLYWOMAN LIFTON:     Thank you,

19   Commissioner.

20         COMMISSIONER SEGGOS:    Thank you.

21         CHAIRWOMAN WEINSTEIN:    Thank you.

22         Senate?

23         CHAIRWOMAN KRUEGER:     Thank you.

24         Senator John Liu.
                                                       62

 1         SENATOR LIU:      Thank you, Madam Chair.

 2         Good morning, Commissioner.

 3         COMMISSIONER SEGGOS:      Good morning,

 4   Senator.

 5         SENATOR LIU:      I remember a year ago

 6   you did say it was going to be your last

 7   hearing.   And I was thankful for your

 8   service.

 9         COMMISSIONER SEGGOS:      Thank you.

10         SENATOR LIU:     Now you're back,

11   congratulations -- or should I offer you my

12   deepest condolences?

13         COMMISSIONER SEGGOS:     (Laughing.)

14   It's congratulations.

15         SENATOR LIU:     In any event, I do have

16   a few questions for you.    By the way, I want

17   to say that your legislative affairs staff --

18   absolutely phenomenal.

19         COMMISSIONER SEGGOS:     Excellent.

20         SENATOR LIU:     So you should give them

21   a raise.

22         COMMISSIONER SEGGOS:     Okay, will do.

23         SENATOR LIU:     All right.   With regard

24   to the EPF, I guess some of the money that
                                                      63

 1   used to be for operating costs to pay staff,

 2   that's now been shifted into the capital

 3   fund.   Is that a good idea?   I mean, what's

 4   going on there?

 5           COMMISSIONER SEGGOS:   So there are a

 6   number of capital funds that we have at DEC:

 7   Clean Water Infrastructure Act, NY Works,

 8   Superfund.    And we apply the staff that work

 9   on those projects -- some of the staff -- to

10   those funds.

11           And the same approach would -- we're

12   asking the authority to put the same approach

13   in play here with the EPF to a nominal level.

14   EPF, $300 million, serves a number of

15   functions around the state.    Our staff are

16   deeply invested in carrying out the mission

17   of the EPF.    And I think it's entirely

18   appropriate to have those staff who are doing

19   that work being paid for by the EPF.

20           SENATOR LIU:   All right.   But the

21   staff are doing the same -- they're doing the

22   same thing they've been doing, it's just that

23   now they're going to be paid for out of

24   capital funds instead of operating expenses.
                                                      64

 1         COMMISSIONER SEGGOS:   That's right.

 2         SENATOR LIU:   So, I mean, some

 3   skeptics would call that a budget gimmick.

 4   Not necessarily of your doing, but just

 5   overall, it's kind of a budget gimmick.

 6         COMMISSIONER SEGGOS:   Well, listen,

 7   I -- if it's appropriate for the other

 8   capital pots, and I think that it is entirely

 9   appropriate for the other capital pots, I

10   think it should be appropriate for the

11   Environmental Protection Fund.   Which, again,

12   we've -- when I first started was

13   $134 million, now 300 million.   We're doing

14   more with it than ever, and those monies are

15   going out all across the state for really

16   important purposes down in Queens and really

17   everywhere.

18         So -- so I think -- you know, I

19   understand what you're saying, but I

20   respectfully think it's a -- is a wise use of

21   those monies.

22         SENATOR LIU:   Okay.   My colleagues

23   have already asked you about the adequacy of

24   the budget for your agency, and you've stated
                                                     65

 1   that you're happy.   I guess you can't really

 2   say anything else.   I understand your

 3   situation there.

 4         COMMISSIONER SEGGOS:    I am happy.

 5         SENATOR LIU:    I mean, I -- look, I

 6   think many of us are concerned, myself

 7   included, that the charge for the DEC is

 8   growing, and rightfully so.   We have -- you

 9   know, the new law is in my opinion ambitious,

10   although, you know, not everybody is happy

11   with the pace of progress so far.   But

12   nonetheless, it's a lot more for the DEC to

13   deal with.

14         So, I mean, is there really enough

15   staffing even with the additional 47

16   full-time equivalents?

17         COMMISSIONER SEGGOS:    Senator, I

18   honestly couldn't be happier with this

19   budget.    I mean, to be --

20         SENATOR LIU:    You could not be

21   happier.

22         COMMISSIONER SEGGOS:    I could not be

23   happier.   We have -- if this budget goes

24   forward as is, we would be up almost
                                                       66

 1   250 staff since the day I first took office.

 2   And our budget itself growing, you know,

 3   $464 million this year now.    Capital,

 4   $7.3 billion.    I mean, those -- unimaginable

 5   back in 2011 during the first fiscal crunch.

 6         And now we have another fiscal crunch,

 7   and yet the Governor has said this still

 8   means enough to him to put those dollars into

 9   this agency.    That's a reflection, I think,

10   of the priority that the Governor has put on

11   the environment.    It's a priority of mine for

12   sure, to make sure that we have enough staff

13   and enough money to carry out our programs.

14   And we're doing it, frankly, better -- we

15   just have a better approach, a more efficient

16   approach.

17         SENATOR LIU:     Okay.   I mean,

18   $1.8 billion is a significant chunk of

19   change.     Is -- does the $1.8 billion include

20   any money that your agency collects in fines

21   and penalties?

22         COMMISSIONER SEGGOS:     You're talking

23   about the $1.8 billion that I mentioned

24   earlier for climate?
                                                         67

 1         SENATOR LIU:     Well, no, I'm talking

 2   about your overall agency budget of

 3   $1.8 billion from the All Funds

 4   appropriations.     Does that include amounts

 5   that DEC collects from fines?

 6         COMMISSIONER SEGGOS:     It should be an

 7   All Funds number, but -- I'm not sure I

 8   entirely understand the question.

 9         SENATOR LIU:     Well, okay.     Let me ask

10   it a different way.    The DEC levies

11   significant amounts of fines on businesses,

12   on homeowners as well.

13         COMMISSIONER SEGGOS:      We do have a

14   robust program to enforce the law, there's no

15   question about it.

16         SENATOR LIU:     And those fines that are

17   levied by the DEC, do they come back not to

18   the DEC or do they go into state coffers?

19         COMMISSIONER SEGGOS:     No, they go into

20   the General Fund.

21         SENATOR LIU:     All right.     So they do

22   not contribute at all to DEC.

23         COMMISSIONER SEGGOS:      No.

24         SENATOR LIU:     Okay.   Thank you, Madam
                                                         68

 1   Chair.    I'll come back for seconds.

 2            CHAIRWOMAN KRUEGER:     Thank you.

 3            Assembly.

 4            CHAIRWOMAN WEINSTEIN:    We go now to

 5   the ranker on EnCon, Assemblyman Stec.

 6            ASSEMBLYMAN STEC:    Thank you, Chair.

 7            Can you hear me, Commissioner?

 8            COMMISSIONER SEGGOS:    I can.

 9            ASSEMBLYMAN STEC:    I'm personally glad

10   that you're back again.

11            COMMISSIONER SEGGOS:    Thank you,

12   Assemblyman.

13            ASSEMBLYMAN STEC:    So thank you, thank

14   you for your service.    And I echo my

15   colleague's sentiments; your staff is

16   fantastic.    So thank you.

17            Last fall the Republican Assembly

18   Conference held hearings around the state

19   regarding our Task Force on Clean Water, and

20   one of the complaints that we consistently

21   heard in these hearings is that the

22   application process for clean water

23   infrastructure is too long and too

24   complicated for a lot of the smaller
                                                     69

 1   municipalities, and also expensive.

 2         So we'd like to see this streamlined.

 3   But I was wondering if you'd heard any

 4   similar complaints and what you might suggest

 5   could be done to improve the process and what

 6   your office could do to help make that an

 7   easier process for these smaller

 8   municipalities.

 9         COMMISSIONER SEGGOS:     Sure.

10   Assemblyman, I think we have -- it's not the

11   first time we've heard that.    And I think

12   when we hear about issues in smaller

13   municipalities that they're having with the

14   application process -- whether it's DEC, DOH,

15   for that matter, or it's the Environmental

16   Facilities Corporation, which processes most

17   of those applications -- we try to lean

18   forward and make the call, not wait for the

19   application.   It can be in a meeting.   Find

20   ways to speed things up, make sure that the

21   application we get is complete, which

22   historically we'd get incomplete applications

23   that would delay things.

24         We're trying to be customer-centric in
                                                      70

 1   this, in that, you know, they are the

 2   customer looking to us for help and we want

 3   to make sure we get that money out the door

 4   that we -- that you have made available to

 5   us.   So if there are creative ways in which

 6   we can do that more effectively, I'd be all

 7   ears.   I believe it would be an operational

 8   thing within DEC.

 9           We also have been putting out

10   engineering planning grants more effectively

11   through our WQIP line in the EPF.   Those

12   planning grants, frankly, are perfect for

13   smaller municipalities, right?   Because to

14   get the big dollars for a big upgrade, you

15   need the engineering designs for it.    So the

16   planning grants actually are a good chance

17   for the smaller ones to get into a pipeline,

18   get a good plan prepared by a consultant, and

19   ultimately get the physical construction

20   grant at the end of the day.

21           So please work -- tell me, you know,

22   which one -- it doesn't have to be here, but

23   you can tell me which ones are in need of

24   more assistance, and we can get them into a
                                                        71

 1   better pipeline.

 2           ASSEMBLYMAN STEC:   Well, thank you for

 3   that.   And I certainly will, but I also

 4   suspect that, you know, for every one that

 5   I'm aware of, there's dozens more that -- you

 6   know, that are asking similar questions.     But

 7   I appreciate your answer.

 8           In that same vein, we've seen reports

 9   that call for the need in capital investment

10   for water and wastewater over the next decade

11   to be approximately $40 billion each, water

12   and wastewater.    Certainly that doesn't all

13   need to be state dollars.    But there's been a

14   migration, since the Clean Water Act in 1972,

15   where the federal government initially had

16   been funding 75 percent of a lot of this, and

17   now over the course of the years there's been

18   fewer federal dollars, fewer state dollars

19   available, and now all this infrastructure

20   that was constructed in the '70s and '80s is

21   aging out and in need of major upgrade.

22           What steps do you think that we can do

23   at the state and perhaps at the federal level

24   to try to secure more dollars, as I mean,
                                                     72

 1   $80 billion of capital improvements to

 2   critical infrastructure like water and

 3   wastewater is an awful lot to -- for small

 4   local municipalities to be looking at without

 5   help.

 6           COMMISSIONER SEGGOS:   Yup, no doubt.

 7   No doubt that the burden has shifted to the

 8   states, all states, to carry that forward.

 9           But we have a good story to tell in

10   New York.   I mean, we worked together on the

11   Clean Water Infrastructure Act.   Those

12   dollars never existed in the past -- it was

13   all loans for 20 or -- for almost 30 years,

14   we were saying to all municipalities, go

15   apply for low-interest loans at EFC.      And

16   many of them did.   Many of them could not.

17   But now the grant program has opened that up

18   significantly.

19           I mean, I've got, over the last five

20   years, $1.5 billion in grants have gone out,

21   with total project costs of $4.7 billion --

22   and that's in addition to another $11 billion

23   in loans.   So we've got almost 15 -- almost

24   $16 billion in the last five years that have
                                                        73

 1   gone out for wastewater infrastructure.    You

 2   keep carrying that forward, as we intend to

 3   do, that's going to make a significant dent

 4   in the overall delta, right, between total

 5   project needs and what we're able to provide.

 6   If you're doing that over 10 or 20 years, I

 7   think we're going to modernize New York's

 8   wastewater infrastructure in that process.

 9            ASSEMBLYMAN STEC:   Well, thank you for

10   that.

11            One last question I'll try to get in.

12   I want to ask about -- I would view it as a

13   contradiction in policy on the one hand

14   regarding fuel, transported fuel in the

15   state.    Certainly trucking fuel is expensive

16   and has a large carbon footprint compared to

17   pipelines that would move fuel a lot more

18   efficiently and a lot more environmentally

19   friendly.    But there's a contradiction there

20   that we're not embracing pipelines.

21            Can you comment on that or explain

22   that?    And that's my last question.   Thank

23   you.

24            CHAIRWOMAN WEINSTEIN:   If you just
                                                        74

 1   want to -- a short answer.

 2         COMMISSIONER SEGGOS:    Sure.   Okay.

 3         I think they're two very different

 4   things.   First of all, our need to address

 5   emissions from the trucking -- really, the

 6   transportation industry, is very high.       You

 7   know, it is, as one of the commentators

 8   mentioned, the largest source of emissions in

 9   New York State.   And we've been putting

10   monies behind that and certainly, as part of

11   the $33 billion that some of the other

12   commissioners can talk about today, directing

13   those dollars into modernizing fleets, making

14   trucks more efficient or getting trucks,

15   frankly, off of those kinds of fuels.

16         And pipelines are an entirely

17   different situation.   I mean, our authority

18   to look at a pipeline is narrowly constrained

19   to the wetlands, water quality impact in

20   trenching through rivers and streams.    I

21   mean, that's literally all we look at.

22         We take that very seriously.      I mean,

23   for a state that has endured significant

24   legacy contamination issues in drinking
                                                         75

 1   water, that's how we -- we apply our

 2   authority very aggressively on all projects

 3   that could impact water quality.

 4            ASSEMBLYMAN STEC:   Thank you.

 5            COMMISSIONER SEGGOS:    Thank you.

 6            CHAIRWOMAN WEINSTEIN:    Thank you.

 7            Senate.

 8            CHAIRWOMAN KRUEGER:    Thank you.

 9            Senator Seward.

10            SENATOR SEWARD:   Thank you, Madam

11   Chair.

12            Commissioner, good to see you again,

13   and your team.

14            COMMISSIONER SEGGOS:    Good to see you.

15            SENATOR SEWARD:   I wanted just to

16   drill down a bit further on the $3 billion

17   bond act, the "Restore Mother Nature" Bond

18   Act.   I know you've talked about some broad

19   outlines in terms of types of projects, and

20   also a process of seeking public input in

21   terms of important projects.

22            But would you anticipate at some time,

23   prior to going before the voters asking their

24   approval in the November elections, that we
                                                        76

 1   will have and the voters will have some

 2   specific projects that they know what they're

 3   going to get for this $3 billion in

 4   borrowing?

 5         COMMISSIONER SEGGOS:   Senator, yes.     I

 6   think that will probably be how we end up

 7   talking to the voters about this.   Right?

 8   You need to put these in real terms, and real

 9   terms that people can understand, either the

10   lack of green space, the lack of

11   environmental protections, or, in the case of

12   Irene and Lee, you know, these valleys that

13   were heavily damaged and how perhaps Restore

14   Mother Nature can help to restore those

15   functions.

16         So I'll leave the campaigning to a

17   different time, because I think it is a --

18   it's a good question.   Obviously we need to

19   work with you to get it done in the budget;

20   then, beyond that, working with the Governor

21   on how an effective campaign could then be

22   communicated to the voters so that they say

23   yes come November.

24         SENATOR SEWARD:   I am encouraged with
                                                     77

 1   the flood mitigation efforts in terms of

 2   stream work to avoid some of the flooding

 3   we've seen, to clean the upstate region due

 4   to streams.   I know right in Schoharie

 5   County, for example -- it goes back to 2011,

 6   and I know there's a meeting, I think on

 7   Friday, with some of the Schoharie County

 8   officials with some members of your staff to

 9   discuss further ways that the state could be

10   helpful there.   That's been an ongoing

11   problem and issue.

12         But that was nine years ago, and we're

13   hoping that we can get some help either --

14   even before or as part of this bond act.

15   That would be encouraging.    Because Mother

16   Nature did a job on some of these communities

17   and these streams --

18         COMMISSIONER SEGGOS:    She did, yup.

19         SENATOR SEWARD:     -- and we need to

20   help restore Mother Nature in the Schoharie

21   Valley.

22         I just wanted to also follow up on the

23   Climate Action Council.   Would you

24   anticipate -- are there going to be business
                                                     78

 1   representatives, private-sector business

 2   representatives on the council to help

 3   provide -- and also, would there be some

 4   cost-benefit analysis?   And would you

 5   anticipate coming back to the Legislature for

 6   any additional consideration by the

 7   Legislature in some of these recommendations

 8   of the council?

 9         COMMISSIONER SEGGOS:     Thank you for

10   asking that.

11         So absolutely.     Even on the Climate

12   Council itself, we believe that some of the

13   appointments made thus far actually have

14   represented certain industries in the past.

15         There are various workgroups

16   underneath the Climate Action Council --

17   agriculture and forestry, power generation,

18   energy-intensive and trade-exposed

19   industries.    All of those workgroups, as

20   they're going to be appointed by the Climate

21   Action Council, would represent exactly what

22   you're talking about:    The impacts to

23   businesses, the opportunities for businesses,

24   the chance to bring in, you know, new
                                                        79

 1   business into New York State, new sectors

 2   into New York State.

 3           So I think the economy and business

 4   and jobs will factor in very extensively into

 5   what we talk about -- a just transition

 6   workforce as well -- just to make sure that

 7   we are, when we transition the economy,

 8   taking into account the potential impacts to

 9   existing jobs and industries.

10           SENATOR SEWARD:   Yes, I couldn't agree

11   more.   Their input is I think critical --

12           COMMISSIONER SEGGOS:    Agreed.

13           SENATOR SEWARD:    -- to the future and

14   also to help with the change in the economy

15   and the new jobs and opportunities that would

16   be out there.

17           One final question, and this is on the

18   polystyrene single-use plastic container ban

19   that's in the budget.     Following up on -- in

20   terms of businesses, has the department met

21   with business groups to discuss this in terms

22   of how many businesses would be impacted?     Is

23   there a workable way to go about doing this?

24           COMMISSIONER SEGGOS:   We have started
                                                       80

 1   early engagement with the stakeholder groups,

 2   businesses on one side, other businesses that

 3   have an interest in filling the void with

 4   alternatives to polystyrene, as well as some

 5   of the groups out there that want to see this

 6   ban go into effect and appreciate the

 7   environmental and health benefits of that.

 8            And that's something we would

 9   continue -- as we get through the legislative

10   session with this and go into regulations,

11   we'd be doing even more intensive outreach.

12            CHAIRWOMAN KRUEGER:    Assembly.

13            CHAIRWOMAN WEINSTEIN:    Assemblywoman

14   Glick.

15            ASSEMBLYWOMAN GLICK:    Thank you,

16   Commissioner.    A few questions.

17            Number one the forests in New York are

18   under tremendous stress.    Part of it is

19   climate change; species of certain trees are

20   feeling those effects.   In addition, there

21   are invasive species.    Around the New York

22   City Watershed, there are a lot of hemlocks.

23   They are being attacked by an invasive

24   species.    If they die, we will see more
                                                        81

 1   sedimentation of the New York City

 2   reservoirs.

 3         What is the agency doing to deal with

 4   this threat, not just there, but further

 5   north that are going to impact lakes,

 6   et cetera?

 7         COMMISSIONER SEGGOS:      I couldn't agree

 8   with you more, Assemblywoman, about the

 9   threats.   The hemlock woolly adelgid, a pest

10   that will undoubtedly look to the trees in

11   the New York City Watershed.

12         The New York City Watershed is the

13   gold standard in watershed protection and has

14   very well funded protective measures that

15   have been taken into account there over the

16   last 20 years.

17         My view is these are -- would be smart

18   investments from the city to prioritize --

19   the City of New York to prioritize the

20   protection of those trees.     Because they've

21   spent all this money in protecting the actual

22   water itself and buying land and setting

23   aside land.   If the trees go, you're right,

24   the sedimentation then increases and the
                                                      82

 1   water quality goes down.   We want to avoid

 2   this filtration issue of -- you know, the

 3   multi-billion-dollar filtration plant that

 4   EPA would force the city to put in place.

 5         This would fit right into it, in my

 6   view, and we stand ready to provide technical

 7   expertise.   And we've been looking at this

 8   very closely, our natural resource folks,

 9   over the last few years as this threat has

10   begun to materialize even more.

11         ASSEMBLYWOMAN GLICK:     Well, I look

12   forward to getting more detailed information

13   from your staff on what you're doing.

14         I think today you're having a hearing

15   in the city on the regulations for the

16   plastic bag ban.    I would just like to point

17   out to you that it seems like there's the

18   thought of a thickness standard.    That is

19   very problematic.    What we'll wind up with

20   aren't the elimination of plastic bags, we'll

21   wind up with thicker bags that are more

22   problematic to the environment.    So I would

23   hope we would not go down that route.

24         Forty percent of the state-owned
                                                        83

 1   buildings are SUNY buildings.     If we're going

 2   to attack climate change and try to upgrade

 3   facilities, what is the department

 4   recommending to the Governor in terms of

 5   providing support to SUNY in order for them

 6   to make improvements in their aging

 7   facilities, which obviously are not up to

 8   snuff in terms of trying to be as renewable

 9   as possible?

10            COMMISSIONER SEGGOS:   We certainly

11   recognize that buildings, as someone

12   mentioned earlier, are a significant source

13   of energy demand and an opportunity for us to

14   do better.

15            Respectfully, I'll let NYSERDA and the

16   other energy agencies discuss those plans on

17   buildings, green buildings, and the interplay

18   with the SUNY system.    No question they have

19   a huge footprint, and a big opportunity for

20   all of us to chip away at it.    I have a

21   meeting scheduled actually with Chancellor

22   Johnson to talk about a number of issues, and

23   this will be one of the things that we talk

24   about.
                                                       84

 1         ASSEMBLYWOMAN GLICK:   Well, I would

 2   hope when we eventually get folks on this

 3   advisory board that they would take into

 4   consideration all of the aspects of the state

 5   facilities that could in fact help us move

 6   more quickly to address climate change.

 7         Finally, there are the recent reports

 8   that out-of-state brine from fracked sources

 9   is being used on our roads when we need to do

10   weather-related protection for vehicles.

11   What's the story, and are we allowing that to

12   be used in our state?

13         COMMISSIONER SEGGOS:   Thank you for

14   raising that.

15         I can say definitively that no brine

16   is coming into New York State from any

17   fracking and being used on our roads.    I know

18   that that's been said, but for the record,

19   it's not happening.

20         ASSEMBLYWOMAN GLICK:   Thank you.    I

21   have to run to a meeting; I hope to be back

22   while you're still answering questions.

23         (Laughter).

24         ASSEMBLYWOMAN GLICK:   Thank you very
                                                         85

 1   much.

 2            CHAIRWOMAN WEINSTEIN:     Senate?

 3            CHAIRWOMAN KRUEGER:     Thank you.

 4            Senator Jen Metzger.

 5            SENATOR METZGER:   Thank you, Madam

 6   Chair.

 7            And thank you, Commissioner, for

 8   answering -- being here to answer all these

 9   questions.

10            COMMISSIONER SEGGOS:    Sure, thank you.

11            SENATOR METZGER:   So just starting out

12   wearing my Agriculture Committee chair hat,

13   the farmland protection funding was reduced

14   by a million dollars.    From my perspective,

15   it should be going in the other direction.

16   Farmers are under -- or just land is under

17   intense pressure, development pressure -- can

18   you guys hear me?    So farmland is under

19   intense development pressure.      Agriculture

20   also has a huge role to play in sequestering

21   greenhouse gas emissions, and it's very

22   important from a climate perspective to

23   protect farmland.

24            So could you please give us some
                                                       86

 1   information about the reasoning behind that

 2   cut?   And do you expect increased funding

 3   under the "Restore Mother Nature" Bond Act?

 4          COMMISSIONER SEGGOS:   Sure.    I'll let

 5   Commissioner Ball maybe answer specifically

 6   about the specific EPF number.

 7          No question about it that farmlands

 8   play a huge role not just for carbon

 9   sequestration, but in and of themselves, the

10   economy.   We are losing our farmland in

11   New York State, unfortunately, as we are

12   really nationwide.   The Clean Water

13   Infrastructure Act -- just a couple of

14   programs to bring your attention to -- has

15   actually directed significant monies, I don't

16   know the number offhand right now, but into

17   buffering around farms, farmland protection,

18   manure storage, lagoon upgrades and things

19   along those regards.

20          And then the Restore Mother Nature,

21   you've heard the Governor talk about the

22   landscape, protecting the landscape.    And

23   certainly farms are on the landscape and have

24   not just a carbon footprint but an
                                                         87

 1   opportunity to remain as-is and not lose

 2   their status and become, you know, shopping

 3   malls or development projects.

 4         So, you know, the EPF is a very

 5   important tool, but there are other very

 6   effective tools to also protect farms.        And

 7   thankfully the Legislature gave us those

 8   tools over the last few years.

 9         SENATOR METZGER:    Okay, thank you.

10   I'm going to put on what I like to call my

11   climate commonsense hat for a moment.     I

12   appreciate your comments that we really need

13   to rethink everything in light of the climate

14   crisis that we face.   I was absolutely

15   thrilled with the passage of the CLCPA and

16   that your department is going to be playing

17   the lead role in implementation.

18         My question is, would you agree that

19   given the aggressive goals of the CLCPA to

20   achieve a carbon-free energy system by 2040,

21   with an interim goal of 70 percent, that it

22   would be imprudent to approve permits for

23   fossil fuel generation, including CPV and

24   Danskammer, which have a useful life span of
                                                        88

 1   50 years or more?    And if you could use

 2   legislative tools to help your department

 3   deny such permits, feel free to share your

 4   thoughts about that.

 5            COMMISSIONER SEGGOS:   I can't weigh in

 6   on the market incentive behind making those

 7   investments.

 8            What I can say is the state has

 9   clearly stepped out and said that by 2040

10   those types of generation sources will not

11   exist.    So the law right now requires us to

12   process permits, and we do so as aggressively

13   as possible.    And if something comes in front

14   of us and they check every box, there are

15   constraints for that.    Right?   And we also

16   need to make sure that we are generating

17   enough power until we make those changes over

18   the next, you know, 20 years exactly.

19            So our goals I don't believe are in

20   conflict with the permitting underway.      I

21   think that the industry will be looking very

22   closely at the work of the Climate Action

23   Council and the scoping plan that's put

24   together, to evaluate whether or not it makes
                                                       89

 1   sense from a market perspective or if there

 2   are other directions that they as investors

 3   or developers should be heading, such as

 4   towards renewables.

 5         SENATOR METZGER:    Okay, thank you.    I

 6   am concerned about exactly the market signal

 7   that's sent if such permits are approved, in

 8   addition to the impacts on health and the

 9   environment.

10         I think I'm out of time.    Right?

11   Okay, thank you very much.

12         COMMISSIONER SEGGOS:    Thank you.

13         CHAIRWOMAN KRUEGER:     Assembly.

14         CHAIRWOMAN WEINSTEIN:    We now go to

15   our Ways and Means ranker, Assemblyman Ra.

16         ASSEMBLYMAN RA.    Thank you.

17         Thank you, Commissioner.    I just have

18   a few questions about a few different areas,

19   starting with the Mother Nature Bond Act and

20   the provisions regarding money being

21   allocated potentially for renewable energy

22   projects, site preparation, construction.

23   How would that work in terms of Article X

24   provisions?    Would they be fully applicable,
                                                       90

 1   streamlined in any way, in terms of awarding

 2   those projects?

 3            COMMISSIONER SEGGOS:   I don't know

 4   that there's a deliberate connection between

 5   the language in the proposed environmental

 6   bond act and what the Governor had sketched

 7   out during the session -- the budget

 8   presentation on Article X.

 9            There's no question that the bond act

10   can be helpful in setting aside some space

11   that might be needed or otherwise, you know,

12   improving infrastructure to help with the

13   delivery of renewables into New York State.

14   But I think those are two separate things.

15            The Article X reform that the Governor

16   sketched out very briefly recognizes that

17   that permitting process right now is not

18   working and we as a state need to do better

19   to get projects through that pipeline much

20   faster.    The five-to-ten-year period frankly

21   is going to be a massive bottleneck for the

22   state if we're going to meet our renewables

23   goals.

24            So finding a way to accelerate that --
                                                       91

 1   again, my colleagues from the other agencies

 2   can speak about that more effectively.     But

 3   from my view, I see the goals, I see the

 4   timeline, and I see a process that frankly is

 5   a bit broken.

 6            ASSEMBLYMAN RA:   And I guess on a

 7   different topic, but along the same lines of

 8   streamlining, in terms of the Clean Water

 9   Infrastructure Act, you know, we're making

10   continued increased investments in that,

11   which I think we all think is a positive

12   thing.    You know, in these first few years of

13   that, do you see the need for any changes in

14   that process in terms of having things

15   approved?    I know we've -- our conference had

16   a task force that we did around the state

17   talking to, you know, municipalities and

18   other stakeholders just in terms of what they

19   see their needs going forward and, you know,

20   what investments we need to make.    And

21   certainly making sure projects that come in

22   that are going to meet the goals of the Clean

23   Water Infrastructure Act, getting them

24   approved in a timely fashion is certainly
                                                      92

 1   part of that.

 2         COMMISSIONER SEGGOS:   Well, I will

 3   agree with you, it's been an extraordinary

 4   undertaking and a fantastic law itself, the

 5   fact that we have now this fund to provide,

 6   you know, necessary dollars for all these

 7   plants and systems across the state.

 8         As Assemblyman Stec mentioned, you

 9   know, there are ways in which we can help

10   some of the smaller municipalities through

11   that process.   In my view, that's an

12   administrative issue on our end that we can

13   find ways in which to help coach applicants

14   through and provide grants, or at least steer

15   them towards competitive pots of smaller

16   grants that enable them to get engineering

17   plans together.   I think that is the sweet

18   spot, perhaps, because the funding has been

19   really extraordinary.   And EFC, Environmental

20   Facilities Corporation, has done just a

21   fantastic job on the loan side in marrying up

22   those grant pots with the loan pots so that

23   you can present a complete opportunity for

24   all these municipalities.
                                                        93

 1            So there may be some things we can do

 2   around the edges, but we're extraordinarily

 3   happy that again this year is another

 4   $500 million towards clean water.       And I

 5   imagine that will be carrying forward for a

 6   while.

 7            ASSEMBLYMAN RA:   Thank you.    My last

 8   question, and it relates to the Styrofoam

 9   ban, I'm just wondering, in terms of the

10   language, how we would handle -- my

11   understanding is there are -- I've heard two,

12   then I heard four, possibly, manufacturers of

13   these type of products in New York State, and

14   how they would be impacted in terms of their

15   ability to do business in other states,

16   whether they would still be permitted to

17   manufacture those items and ship them out of

18   state or would the ban prevent them from

19   doing that?

20            COMMISSIONER SEGGOS:   Absolutely, the

21   businesses that are currently producing

22   polystyrene will be able to continue

23   producing that and sell it to outside

24   markets.    There's also a two-year phase-in
                                                     94

 1   that I'm hoping that over this phase-in

 2   period we can help to move these

 3   businesses -- and I don't have the exact

 4   number -- but move them towards alternatives

 5   that can be sold here in New York.    Because

 6   there will be then a great demand here in

 7   New York State, a great business opportunity

 8   right here in New York, to produce the

 9   non-polystyrene alternative.

10         So that's really the essence of the

11   phase-in, is giving that ability for the

12   market to adjust, but also for us to work

13   with them directly on that.

14         ASSEMBLYMAN RA:   All right.    Thank

15   you, Commissioner.

16         COMMISSIONER SEGGOS:     Thank you.

17         CHAIRWOMAN WEINSTEIN:     Thank you.

18         Senate?

19         CHAIRWOMAN KRUEGER:      Thank you.

20         First off, we've been joined by

21   Senator O'Mara.

22         And the next up for questions is

23   Senator Anna Kaplan.

24         SENATOR KAPLAN:   Thank you,
                                                     95

 1   Chairwoman.

 2          Commissioner, I want to thank you and

 3   also thank Governor Cuomo in our fight

 4   against climate change and wanting to make

 5   New York State a leader, and for also

 6   proposing the "Restore Mother Nature" Bond

 7   Act.   As you said, this is really an

 8   important investment for all of us, and we

 9   need to do everything possible in our fight

10   against climate change.

11          So my question to you is about

12   beginning to invest in electric-vehicle

13   charging infrastructure, and particularly for

14   schools.   We know that we need to transition

15   private vehicles over to electric in pretty

16   short order, but there just isn't

17   infrastructure to support charging stations

18   yet.

19          Will the bond funding include money to

20   invest in our charging infrastructures for

21   schools and for our residents?

22          COMMISSIONER SEGGOS:   As is currently

23   written, the bond act does not have a direct

24   impact on that.   But separately in the
                                                        96

 1   budget, which NYSERDA and DPS can talk about

 2   later, there is an effort now to increase

 3   charging infrastructure as well as the

 4   incentives tied to the purchase of electric

 5   vehicles.

 6         We've done a great job over the last

 7   eight years in pushing people towards EVs.     I

 8   think we're in the top three states in the

 9   U.S. on that.   The Governor, as you may have

10   seen at the budget briefing, has now brought

11   in a Nobel laureate to help us reshape the

12   system from the EV -- the EV structure system

13   as well as top to bottom how those these

14   vehicles are purchased.

15         And the monies would ultimately come

16   out of probably not the Restore Mother Nature

17   Bond Act, but out of other energy funds that

18   are being shaped now.

19         SENATOR KAPLAN:     Okay.   The second

20   part of that is, the school buses are huge

21   emitters of carbon, not to mention the diesel

22   engines that produce a lot of noise and

23   require a lot of maintenance, and the cost

24   that is charged to our schools.    I think this
                                                        97

 1   would be really a good investment for our

 2   schools and for our residents.

 3         There are countless benefits of

 4   switching our schools, so maybe you could

 5   really find some funding for this, for our

 6   schools to be able to make their transition

 7   to electrical vehicles.   And also possibly

 8   making investment in our schools in the

 9   buildings, whether it's solar or thermal,

10   whatever that we can do to help them make

11   that transition.

12         COMMISSIONER SEGGOS:     Agreed.   There's

13   so many reasons to treat our schools with

14   some care here, because students are the most

15   vulnerable populations of all.    And in fact

16   that was one of the reasons why we dedicated

17   a significant portion of funding through the

18   Volkswagen settlement towards the purchase of

19   clean buses.

20         And again, there are a number of

21   efforts underway at NYSERDA, DPS, and NYPA to

22   provide money to schools to go solar,

23   incentives to go geothermal.    The work of the

24   Climate Action Council will certainly look at
                                                      98

 1   that sector and ways in which the state can

 2   be helpful in providing more funds for that

 3   very significant footprint statewide, all the

 4   schools.

 5           SENATOR KAPLAN:   Thank you.

 6           COMMISSIONER SEGGOS:    Thank you.

 7           CHAIRWOMAN KRUEGER:     Assembly.

 8           CHAIRWOMAN WEINSTEIN:    Assemblywoman

 9   Fahy.

10           ASSEMBLYWOMAN FAHY:     Thank you,

11   Madam Chair.

12           And good morning, Commissioner, thank

13   you for -- or good afternoon, thank you for

14   being here.    Really appreciated a whole host

15   of your comments, and I want to make a couple

16   of comments on that and then I've got just a

17   couple of questions.

18           One, really appreciate that this is at

19   the top of the State of the State and the

20   budget and that the focus is very real and

21   the multipronged approach that you are

22   taking.    Also very appreciative to see the

23   staffing increases in the budget this year,

24   it's very encouraging.    Also want to mention
                                                     99

 1   really appreciated the numbers that you've

 2   put in in the State of the State Book that

 3   you know I'm going to keep repeating, and

 4   that is the $26 billion that this state has

 5   spent on weather-related disasters just since

 6   2011, and the 50 billion that you project.

 7         Which will lead me into a couple of my

 8   questions, but prior to those couple of

 9   questions I also want to mention a couple of

10   things.   I want to keep working with you on

11   this issue at the Coeymans -- in Coeymans

12   regarding the LaFarge plant.    I know we've

13   had some good conversations.    You'll be

14   seeing a letter from me about these tires and

15   how we -- the waste or the possible burning

16   of these used tires.   So we'll keep talking

17   about how we can grow new markets for those

18   used tires.

19         I also understand -- I was out when

20   fracked gas came up, and I'd like to

21   follow up with you.    I understand there's

22   some conflicting data or reports about

23   whether fracked gas is still being

24   imported -- the waste is being imported into
                                                         100

 1   the state.   So I'd welcome following up with

 2   you on that.

 3         Back to the need and the disasters.       I

 4   really am appreciative that the Governor has

 5   been out there with this $3 billion bond

 6   proposal.    And as you know, I had mentioned

 7   the need for a bond a couple of months ago in

 8   one of our last hearings on the environment.

 9   My only question is given some of the very

10   serious needs, and given that we haven't had

11   one in almost 25 years, is this enough?

12         I really appreciate the focus on

13   resiliency and the Mother Nature, but

14   wondering if we need -- I think, I would

15   contend we need to go further and take full

16   advantage of this opportunity with

17   retrofitting and energy efficiency,

18   electrification that we've heard mentioned.

19   And as you know, I'm very focused on

20   SUNY/CUNY.

21         Can you talk about what the need is

22   and how we ended up with the $3 billion?

23   Again, putting my cards right out there that

24   I'd like to go beyond that.
                                                        101

 1         COMMISSIONER SEGGOS:       Well, thank you

 2   for raising that.      And, listen, I'll leave

 3   the numbers to a higher level to sort out.

 4         I will say this, though.      The fact

 5   that, again, we're in a financial crunch

 6   right now and we have the Governor proposing

 7   not just hundreds of millions but $3 billion

 8   as a bond act is a representation of how

 9   serious this is.    And the fact that it's

10   additive to all of our other programs -- the

11   clean water programs, the Superfund, NY

12   Works, EPF -- again underscores how serious

13   this issue is for this administration.

14         And as to whether it is enough, well,

15   I think there are no dollars now.     And we're

16   doing quite a bit now.     And I think with the

17   $3 billion additional, we'll be able to

18   transform the state.      I view it as an

19   investment.   Right?

20         I mean, again, you picked out of the

21   book those numbers -- $26 billion of damage

22   that the state and feds have paid for here in

23   New York from severe weather over the last

24   few years, 50 billion we're projecting
                                                       102

 1   looking forward over 10.    You either make

 2   these investments now or you're going to pay

 3   a lot more in the future.      And it's a

 4   testament to the Governor's commitment here

 5   and the fact that he's experienced those

 6   storms viscerally, and being able to

 7   translate that into actual policy here for

 8   the state is a great thing.

 9            ASSEMBLYWOMAN FAHY:    Thank you,

10   Commissioner.    I appreciate that, and I

11   agree, it's incredibly encouraging.      I just

12   want to make sure while we're going down this

13   road we do as much as needed, especially with

14   the extraordinary demand.

15            And part of that demand is my last

16   question:    Water infrastructure.   I know we

17   haven't had any updated reports, but I do

18   feel like every other day we're seeing a new

19   report about water -- the contaminants in our

20   water.    So it seems as if the demand and the

21   need is growing.

22            Can you talk a little bit about what

23   the established need is?    And of course I too

24   would like to see this as part of this
                                                       103

 1   bonding, to go a little further.    Not

 2   dismissing at all the great inroads that we

 3   have made with the investments -- I agree

 4   with your word, the investments that we have

 5   made in our water to date.     But can you talk

 6   about what the need is going forward?

 7           COMMISSIONER SEGGOS:   Sure.   Well,

 8   again, thanks to the Legislature and thanks

 9   to the Governor's foresight on this, I mean,

10   we have a head start on this issue.

11           Several years ago we did the

12   billion-dollar Superfund reauthorization,

13   which helped us to address so many problems

14   across the state as they emerged -- as the

15   science became more apparent, as things like

16   Hoosick Falls emerged, we were able to apply

17   those dollars and to fix a real problem

18   locally.

19           Wastewater infrastructure, neglected

20   for 30 years in New York State -- we

21   collectively made up our minds that we needed

22   to fix that, so we got $2.5 billion behind

23   that.   And again, as I mentioned earlier,

24   $15.8 billion in projects over the last
                                                         104

 1   five years.    I mean, we can point to that as

 2   a real success story.    Moving forward, we've

 3   got $500 million again this year as a

 4   proposal from the Governor into the

 5   Clean Water Infrastructure Act.

 6            And the idea about all of these

 7   different funding sources is to try to do our

 8   best to integrate all of them into something

 9   cohesive, right?    Not treat them as one-offs,

10   but something cohesive.

11            The bond act, yes, has a focus on the

12   environment, on clean water, on drinking

13   water.    But if you pay to restore habitat in

14   a certain area, that has dual benefits.      It's

15   also restoring water quality.     So we can make

16   single investments that have multiple

17   purposes, and that's really the idea behind

18   having something that's well-crafted,

19   well-envisioned, but also integrated to all

20   the other pots.

21            ASSEMBLYWOMAN FAHY:    Thank you,

22   Commissioner, and thank you, Chair.

23            COMMISSIONER SEGGOS:   Thank you.

24            CHAIRWOMAN KRUEGER:    Thank you.
                                                      105

 1         Senate, Betty Little.

 2         SENATOR LITTLE:   Thank you.

 3         Thank you, Commissioner, for

 4   continuing to be commissioner.    You do a

 5   great job, and I enjoy working with you,

 6   that's for sure.

 7         (Audio interruption.)

 8         SENATOR LITTLE:   I too saw many things

 9   in the budget that are --

10         CHAIRWOMAN KRUEGER:     We've been

11   interrupted by the impeachment.   Hold on one

12   second, Betty.

13         (Discussion off the record.)

14         CHAIRWOMAN KRUEGER:     Sorry, Betty.

15   Yell at Senator Seward later.

16         SENATOR LITTLE:   Thank you.   There are

17   many, many things in the budget that are good

18   for the North Country, and I truly appreciate

19   what the Governor has put forward here.

20         The additional positions that you

21   have, I would hope some of them would go to

22   my absolute favorite DEC people, the Forest

23   Rangers.   We have talked about the need for

24   additional Forest Rangers for a number of
                                                       106

 1   years, since we have so much more state land

 2   being added.    But their work, as noted in the

 3   newspapers -- they seem to do a report week

 4   by week of the dangerous, risky work that

 5   they do in saving people, helping people find

 6   their way out and avoiding death.    So really

 7   appreciate them.

 8         The one thing that they need -- I know

 9   we've combined them with the Environmental

10   Conservation Officers, but what I hear from

11   them is the need for an absolutely strict

12   list of what they do differential from

13   Environmental Conservation Officers.    They do

14   not want to be enforcement officers, they

15   want to be the people who go to fires, who go

16   to lost people, lost animals, all kinds of

17   things that they have worked on.    So I would

18   ask you just to continue that.

19         The tourism in the Adirondacks has

20   increased greatly.    There are more and more

21   hikers.     I hate the word "trail overuse."

22   I'd rather see "trail popularity," it's more

23   positive.    But is there any money in this

24   $55.2 million capital that would help with
                                                      107

 1   the hiking center that we have plans for and

 2   being proposed for at Marcy Field in Keene?

 3   Where people could go and find out, you know,

 4   you don't have to use the popular trails, let

 5   us tell you about some other trails in the

 6   Adirondacks -- how you get there, where you

 7   park your car, and all of that.

 8            So hopefully -- you don't have to

 9   answer right now, but I'm putting in a plug

10   for that money.

11            And then the second thing you have

12   that I thought was good too is this

13   partnership between Clarkson and SUNY ESF on

14   the algae blooms, which is totally necessary.

15   But one area of concern that has concerned me

16   more lately is Lake Champlain.    And I know,

17   you know, we blame Vermont and Vermont blames

18   New York and all of that.   But is there

19   anything real that's being done with Vermont?

20            Because boats -- we've worked so hard

21   on invasive species and keeping the boats

22   clean and all that, keeping it out of our

23   lakes.    But Lake Champlain has plenty of

24   invasives as well as the algae blooms.
                                                       108

 1           COMMISSIONER SEGGOS:   Well, I would

 2   blame Vermont.

 3           SENATOR LITTLE:   I would too, but --

 4           COMMISSIONER SEGGOS:   My former chief

 5   of staff is now over there running things,

 6   so --

 7           SENATOR LITTLE:   Yeah, I see a lot of

 8   that.

 9           COMMISSIONER SEGGOS:   But listen,

10   we're talking on a regular basis with Vermont

11   about the problem of Lake Champlain.    I mean,

12   in all truth, the amount of nutrients coming

13   into that lake is far more from the Vermont

14   side than from the New York side.    They just

15   have a different -- they have a different

16   history of managing the watershed over there.

17           And we work jointly on the issue of

18   invasives.   I mean, too many invasive species

19   have gotten into that water body.    There's

20   some pockets on the lake where you have

21   harmful algal blooms, also where we on our

22   side have been spending a considerable amount

23   of money.    And it's a jewel of a lake; you

24   want to see that there's a long-term future.
                                                         109

 1         From what I understand from the

 2   Vermont side, they are taking it seriously.

 3   They had a referendum, unfortunately not

 4   passed in a recent election.    But, you know,

 5   we stand ready on our side to provide the

 6   funds we need to protect that watershed.       It

 7   is quite a place.

 8         SENATOR LITTLE:    Well, we have people

 9   on our side, along the shoreline, many

10   beautiful homes, paying high taxes and all,

11   that have put in swimming pools because they

12   can't even swim in the lake, yet they're part

13   of the lake.   They can go in a boat and find

14   someplace.    But other than that, they have no

15   use for it.

16         Is there any idea of having a working

17   group formed from New York and Vermont to

18   really sit down and make some progress here?

19         COMMISSIONER SEGGOS:     We actually,

20   thankfully, do have a working group, and we

21   have regular communication with our partners

22   in Vermont.    Also with EPA Region 2, going

23   back many years -- the region's got a role to

24   play in this as well as Region 1.
                                                           110

 1         So yes, there is a forum for us to

 2   work these issues out.    Ultimately it comes

 3   down to money.   And the Vermont side has

 4   indicated a willingness to do that.     They've

 5   got to find the resources to do it, though.

 6         SENATOR LITTLE:     Thank you.    It's

 7   something that really needs to be done.        But

 8   thanks again for all your work.

 9         COMMISSIONER SEGGOS:     Thank you,

10   Senator.   And I'm going to miss you.

11   Congratulations on a great career.

12         SENATOR LITTLE:     Well, thank you.      I'm

13   going to miss this too, but it's time.      So

14   thank you.

15         CHAIRWOMAN KRUEGER:     Maybe she'll do

16   what you do.   She said it was her last budget

17   hearing, but who knows.    Who knows in Albany.

18         (Laughter.)

19         COMMISSIONER SEGGOS:     Come to DEC.

20         UNIDENTIFIED MEMBER:     Don't tell Stec,

21   though.

22         (Laughter.)

23         CHAIRWOMAN KRUEGER:     Okay, sorry.

24         Assembly?
                                                      111

 1           CHAIRWOMAN WEINSTEIN:    Thank you.

 2           Assemblyman Epstein.

 3           ASSEMBLYMAN EPSTEIN:    Thank you for

 4   being here.    I just have a couple of quick

 5   questions.    Sorry about my voice, it's the

 6   time of year, I guess, for all of us.

 7           I notice that we gave $2.4 million in

 8   this past budget for composting, to expand

 9   composting statewide.    And really most

10   counties across the state have done an

11   inadequate job doing that.      I'm wondering,

12   why don't we reprioritize that, make it a

13   higher priority to get composting done

14   statewide, because so much of our

15   compostables go into landfills and it's

16   really adding to greenhouse gases.

17           COMMISSIONER SEGGOS:    Couldn't agree

18   more.   And the Legislature did a great job

19   last year passing that organics legislation,

20   which we'll be rolling out over the next

21   couple of years.   And you see downstate

22   communities doing a pretty good job of it,

23   New York City and Long Island opening up

24   markets.   There's good talk upstate, places
                                                      112

 1   like Rochester, where you have Wegmans on the

 2   front end on organics legislation.

 3           So agree with you, it's an important

 4   aspect of our work and will be over the next

 5   couple of years.   And we'll ultimately have

 6   one of the most effective programs in the

 7   nation.

 8           ASSEMBLYMAN EPSTEIN:   Well, we've

 9   heard from municipalities saying they don't

10   have enough support from the state to roll

11   them out.

12           You mentioned Long Island, and we

13   heard from counties on Long Island saying

14   they just can't do it, they don't have the

15   resources, they're already strapped for cash.

16   I know where my mother lives in Nassau County

17   there's no ability for her to compost

18   anywhere.

19           COMMISSIONER SEGGOS:   Well, I would

20   say that they should reach out to us for

21   help.   You know, Composting is a big

22   opportunity, it's a huge waste stream.   We've

23   got a significant amount of money going to

24   municipal recycling grants, waste reduction
                                                       113

 1   grants.   You know, we have the organics

 2   legislation coming up, we have reform of our

 3   solid waste law, which is known as Part 360,

 4   which we're constantly adapting to make

 5   composting and other waste streams done more

 6   effectively here in the state.

 7           But the EPF provides good resources.

 8   There may be other resources that the

 9   municipalities could tap into.     And I think

10   just if you are hearing of any -- and to all

11   of you, if you're hearing of any

12   municipalities that need assistance, please

13   have them reach out to me and my staff and

14   we'll help them through it.

15           ASSEMBLYMAN EPSTEIN:   Great.

16           I want to turn your attention to

17   electric vehicles.   We heard earlier about

18   that.   And so how many electric vehicles does

19   the state have on its -- in its vehicle --

20   like how many -- what percentage of vehicles

21   do you have that are electric?

22           COMMISSIONER SEGGOS:   You mean within

23   the state fleet?

24           ASSEMBLYMAN EPSTEIN:   The state fleet.
                                                       114

 1         COMMISSIONER SEGGOS:     I don't have

 2   that number, but I can get that for you.

 3         ASSEMBLYMAN EPSTEIN:     Will you get the

 4   number and the percentage of overall

 5   vehicles, and the plan to move away from --

 6   move towards electric vehicles.

 7         The other question is about charging

 8   stations and making them publicly available.

 9   So we -- like we have here in the LOB, we

10   have charging stations for electric vehicles.

11   But if you drive around Albany, there's no

12   place to charge your car.   If you go to

13   New York City, there are no publicly

14   available charging stations.

15         So we want to move people to using

16   electric vehicles, but they can't charge

17   their car in any publicly available -- I'm

18   wondering what the state's going to do to

19   encourage people to use electric vehicles

20   when they can't just charge their car

21   publicly.

22         COMMISSIONER SEGGOS:     Sure.   And I'll

23   defer largely to my energy counterparts to

24   answer that question, because I know they
                                                       115

 1   have programs underway right now, which is --

 2   you know, the Governor had talked about in

 3   brief during his address, which is to ensure

 4   that we've got charging stations in every

 5   county, we've got enough charging stations

 6   out there.

 7          ASSEMBLYMAN EPSTEIN:   But publicly

 8   available charging stations --

 9          COMMISSIONER SEGGOS:   Publicly

10   available, that's right.

11          ASSEMBLYMAN EPSTEIN:   -- Is different

12   than charging stations.

13          COMMISSIONER SEGGOS:   That's right,

14   yup.   And I know -- listen, on the Thruway,

15   at least, that's a big buildout.    NYPA's been

16   helping the Thruway Authority with that and

17   making sure that there are enough

18   fast-charging stations there.

19          So it's something we've certainly

20   recognized is a crucial factor.    I don't want

21   to call it a bottleneck because it isn't a

22   bottleneck yet.   But we know we have to build

23   out the infrastructure to be able to invite

24   the number of EVs we want to sell in this
                                                        116

 1   state.

 2            ASSEMBLYMAN EPSTEIN:   Yeah, thank you.

 3            I want to turn you quickly to the bond

 4   act.   And just -- we've heard a lot from --

 5   I'm from the city, we've heard from the city

 6   that while the $3 billion is a good start, it

 7   really doesn't let the municipalities, like

 8   New York City, deal with the resiliency they

 9   believe their priorities are.     I'm wondering

10   how you'll work with municipalities like

11   New York City.    You know, we lived through

12   Sandy and there are specific decisions

13   they're making about what they need to do.

14   Why not let the cities drive the resiliency

15   that has to be done in those locations?

16            COMMISSIONER SEGGOS:   Absolutely.   I

17   think, again, this is going to be a

18   bottoms-up approach.    We'll be working with

19   the entire state, all communities, all

20   stakeholder groups, to come up with a plan to

21   increase resiliency, to reduce flood damage,

22   to improve habitat.

23            New York City is a perfect example

24   where you have a huge population and a
                                                         117

 1   shoreline that is not built for sea level

 2   rise or extreme weather.    So that would be

 3   one of our focal points for sure.

 4          ASSEMBLYMAN EPSTEIN:    Great, I

 5   appreciate that.

 6          And lastly -- I know I'm running out

 7   of time -- just the cuts for capital for

 8   animal shelters.    I mean, clearly, there's a

 9   need for it.   We've been using the money

10   every year.    The need for expanded locations

11   for animals.   I'm a little concerned about

12   the capital cut there.

13          COMMISSIONER SEGGOS:    Okay.    That -- I

14   don't believe that's within DEC's budget at

15   all.   But we'll take the question and make

16   sure that you get an answer on it.      Okay,

17   thanks.

18          CHAIRWOMAN WEINSTEIN:    Thank you.

19          CHAIRWOMAN KRUEGER:     Thank you.

20          Senator Brad Hoylman.

21          SENATOR HOYLMAN:    Thank you.    Thank

22   you, Madam Chair.    I believe this is on.

23          Nice to see you, Commissioner.       Thank

24   you.
                                                         118

 1            COMMISSIONER SEGGOS:   Senator.

 2            SENATOR HOYLMAN:   Is it on?

 3            CHAIRWOMAN KRUEGER:    Some of them work

 4   better than others.

 5            Oh, we've been joined by Senator

 6   Borrello.    Welcome to your first hearing.

 7            Brad, did you get one that you think

 8   works?

 9            SENATOR HOYLMAN:   Yes, I think I got

10   one that works.    I can hear an echo.     And

11   just think, Senator Krueger, you only have

12   two more weeks of these hearings.

13            I wanted to ask you, Commissioner,

14   about the Diesel Emission Reduction Act.

15   It's a question I've asked a number of years.

16   You know, we as Legislature passed it

17   13 years ago, but just last year we finally

18   stopped delaying the implementation of it,

19   which will mean that all state vehicles and

20   vehicles operating under contract with state

21   agencies will now have to be compliant with

22   those guidelines.

23            Could you tell us what the current

24   compliance rate is for these vehicles and
                                                       119

 1   what your forecast is?

 2           COMMISSIONER SEGGOS:   Sure.   Good

 3   news.   We are over 98 percent, 99 percent

 4   right now for the state fleet.    The number is

 5   a bit less than that on the contractor side,

 6   but the number's been going up considerably.

 7   I mean, it really has been over the last

 8   three years, but more so over the last year.

 9   I can get you the exact number on the

10   contractor fleets, but there's been a big

11   spike in the last year.

12           SENATOR HOYLMAN:   That's really good

13   to hear.   I'm glad we finally got that

14   implemented.

15           I wanted to also ask you about the

16   cleanup of the Hudson River.    And obviously

17   the state has a lawsuit against the EPA

18   regarding EPA's responsibility to finish

19   cleaning up the PCB contamination.

20           Are there other measures the state

21   could be taking to require remediation in the

22   meantime as that lawsuit winds its way

23   through the courts?

24           COMMISSIONER SEGGOS:   Good question.
                                                        120

 1   So GE is on the hook really for this

 2   pollution.    We needed the EPA, frankly years

 3   ago, to keep GE in the water.    And

 4   unfortunately they were allowed to go, and

 5   then you had a change of administrations,

 6   which frankly I had held out some hope for in

 7   the beginning because of some of the public

 8   pronouncements about their commitment to

 9   holding GE accountable.     Since then it's gone

10   in the wrong direction, and we were forced to

11   go to court to challenge the agency on their

12   decision-making.

13            I want to keep the burden on GE.

14   They've got the deep pockets.    What EPA has

15   done is unforgivable.    They're projecting,

16   you know, 70-plus years before people can eat

17   fish safely out of the river.

18            SENATOR HOYLMAN:   Seventy.

19            COMMISSIONER SEGGOS:   Seventy-plus

20   years.

21            And to the EPA, they believe that

22   that's acceptable under federal law.    We

23   totally disagree, that they have the power to

24   compel the company to get back in the water
                                                        121

 1   if necessary.     We believe it's necessary to

 2   address the remaining PCBs that are in the

 3   water in the Upper Hudson and to begin

 4   studying the Lower Hudson, so we know how far

 5   the contamination actually went.

 6           Did it go down as far as New York

 7   City?   Well, possibly.    We know that there

 8   are hot spots in the Upper Hudson and in this

 9   area of the Hudson River.

10           But while we have the EPA on notice, I

11   want to keep GE on the hook for that.    And

12   there may be things we can turn to beyond

13   that.   But our obligation is to make the

14   polluter pay in this instance.

15           SENATOR HOYLMAN:    Is there testing

16   done of the Lower Hudson for PCB

17   contamination?

18           COMMISSIONER SEGGOS:    Some testing was

19   done over the years, some inconsistent

20   testing, that we were able to get it to --

21   well, DEC did and others did, incidental to

22   other cleanups.    We had heard some positive

23   indications of some willingness to look at

24   the lower river, but we haven't seen any
                                                         122

 1   results yet, certainly not out of the EPA.

 2         SENATOR HOYLMAN:    And finally, in my

 3   last seconds, I think the budget proposes to

 4   move $5 million out of EPF and to supplant

 5   that with off-budget RGGI funds.     Is that

 6   just a case of robbing Peter to pay Paul?      It

 7   doesn't seem like there's an overall increase

 8   in environmental budget funds.

 9         COMMISSIONER SEGGOS:    Yeah, so there's

10   actually a deposit from RGGI into the EPF of

11   $5 million for climate purposes within RGGI.

12   And as you know, there are EPF programs,

13   about $20 million worth of EPF programs that

14   fund climate work.   And we would seek to have

15   RGGI help to pay for that work.

16         SENATOR HOYLMAN:    Thank you.

17         COMMISSIONER SEGGOS:    Thank you.

18         CHAIRWOMAN KRUEGER:     Thank you.

19         Assembly.

20         CHAIRWOMAN WEINSTEIN:      Assemblyman

21   Carroll.

22         ASSEMBLYMAN CARROLL:    Thank you,

23   Madam Chair.

24         Good afternoon, Commissioner Seggos.
                                                      123

 1         COMMISSIONER SEGGOS:    Afternoon.

 2         ASSEMBLYMAN CARROLL:    My first set of

 3   questions revolve around the Williams

 4   Pipeline.    I was very happy to see that the

 5   DEC rejected the permit for the Williams

 6   Pipeline last May.   As you know, they have

 7   reapplied.

 8         And my question is, the DEC rejected

 9   the 401 quality permit last year.     The fact

10   that the company has reapplied, can you tell

11   us if there's any reason to think the DEC

12   won't once again permanently deny this

13   permit?

14         COMMISSIONER SEGGOS:    Well, I won't

15   get ahead of the final determination, which

16   is due in May.

17         I will tell you, as I mentioned

18   earlier, that with any pipeline application

19   that comes across, given their nature, how

20   disruptive they can be to the natural

21   environment -- again, noting that our water

22   quality certificate is really our primary or

23   sole jurisdiction over that review.    We take

24   those very seriously.   And in this day and
                                                         124

 1   age when you see damage to water quality

 2   impacting lives on a regular basis, we have

 3   to provide the strictest possible scrutiny of

 4   those applications.

 5         So twice denied, twice reapplied.        We

 6   understand our obligations, and the clock is

 7   ticking on it.

 8         ASSEMBLYMAN CARROLL:     Understanding

 9   that you don't want to get ahead of the

10   application, but to your knowledge has

11   anything changed about the project?

12         COMMISSIONER SEGGOS:     There may -- I'd

13   have to check with my staff as to whether or

14   not any modifications have been made.    The

15   reapplication -- I haven't seen the

16   reapplication materials, but that's something

17   that's now with us.   And we'll be, obviously

18   within the time period allotted, making sure

19   the best experts at the agency have given it

20   their hardest look.

21         ASSEMBLYMAN CARROLL:     Thank you.

22         Switching gears, Senator Metzger had

23   asked about this previously.    Looking at the

24   aggressive goals of the CLCPA, do you
                                                        125

 1   agree -- in just your opinion -- that the

 2   state should stop permitting fossil fuel

 3   projects to meet those goals?

 4         COMMISSIONER SEGGOS:    Well, listen,

 5   I'm in a unique position.    Right?   I'm the

 6   state's regulator when it comes to the

 7   environment.   I can't supplant my personal

 8   opinion for my obligation to process permits.

 9   I mean, that's the bottom line.

10         Do I believe that the state has to get

11   off of fossil fuel?   Absolutely.     I firmly

12   believe that we have an existential crisis on

13   our hands.   But I can't say that -- you know,

14   that we won't process permits.

15         ASSEMBLYMAN CARROLL:    So if 2040 is

16   the goal that's stated in the CLCPA, what do

17   you think would be a reasonable goal for the

18   DEC to stop accepting permits?

19         COMMISSIONER SEGGOS:    Well, I think

20   this is going to come to the Climate Action

21   Council.   And the scope of work that the

22   Climate Action Council develops will guide

23   the state over the next 20 or 30 years.     That

24   is going to send market signals to developers
                                                       126

 1   as to whether or not it makes sense to make

 2   those kinds of investments here in New York

 3   State.

 4            ASSEMBLYMAN CARROLL:   But don't you

 5   think a bright line would send the best

 6   market signal?

 7            COMMISSIONER SEGGOS:   Well, I think

 8   the brightest line would come out of the most

 9   thorough process, and that's what the

10   Legislature gave us through the Climate

11   Leadership Act.

12            ASSEMBLYMAN CARROLL:   Well, why don't

13   we flip it.    Instead of approving permits,

14   what about the decommissioning of current

15   fossil fuel plants?    When -- do you think

16   there's a year that we need to decommission

17   all of these plants by?

18            COMMISSIONER SEGGOS:   Well, certainly

19   by what the law laid out, 2040.

20            ASSEMBLYMAN CARROLL:   2040.   So all

21   will be decommissioned by 2040.

22            COMMISSIONER SEGGOS:   All will be

23   decommissioned by 2040.

24            ASSEMBLYMAN CARROLL:   Thank you so
                                                        127

 1   much, Commissioner.

 2           COMMISSIONER SEGGOS:    Thank you.

 3           CHAIRWOMAN KRUEGER:     All right?

 4           CHAIRWOMAN WEINSTEIN:    Yes.    Senate.

 5           CHAIRWOMAN KRUEGER:     Thank you.

 6           Senator Robert Jackson.

 7           SENATOR JACKSON:   Thank you.

 8           Good morning, everyone.

 9           COMMISSIONER SEGGOS:    Morning,

10   Senator.

11           SENATOR JACKSON:   I mean good

12   afternoon.

13           So, Commissioner, I was listening to

14   your response to Brad regarding GE.      And my

15   question is, is it necessary for DEC or

16   another agency to file a lawsuit against the

17   federal government?   Because based on the

18   readings here that I have is that the

19   information that the feds are having is not

20   true.   There's still an environmental

21   situation there, so it's necessary to file a

22   lawsuit.   Am I right or am I wrong?

23           COMMISSIONER SEGGOS:    You're

24   absolutely right.   In fact, we did file that
                                                       128

 1   lawsuit.   So we're in court now with the EPA

 2   over this very matter.

 3         And yeah, you're absolutely right, the

 4   job was never done.   They signed off on it

 5   and moved along before they had analyzed

 6   appropriately the data that's out there

 7   showing a continued problem.

 8         SENATOR JACKSON:     So where -- you feel

 9   that from an agency's point of view that the

10   State of New York must file a lawsuit in

11   order to protect the people of New York

12   State, you feel that is an absolutely

13   necessary part of the process?

14         COMMISSIONER SEGGOS:     Certainly in

15   this instance when we've exhausted all

16   other avenues.   Right?   We made a --

17   provided -- right before the change of

18   administrations provided a mountain of data

19   showing a continued problem.    And now with

20   the new administration for three years, I've

21   worked hard to have science be the guide,

22   have the data be the guide, and ultimately

23   the EPA disregarded the data, went a

24   different direction, and then forced us to
                                                      129

 1   sue in court.

 2         SENATOR JACKSON:     Okay.   I expected

 3   your response, because that's clearly an

 4   appropriate response.   And I thank you for

 5   doing that, because I'm just questioning some

 6   other things in other areas, which is not

 7   DEP, but dealing with education and lawsuits

 8   involved in that.

 9         But let me just say on that subject.

10   I did not see anything in your presentation

11   talking about education of our youth and the

12   people of New York State in order so all of

13   us will be engaged in the process of cleaning

14   up our environment.    Obviously the rally and

15   march that occurred in New York City with

16   Greta and New York, obviously it's extremely

17   important.

18         Do you plan on having a partnership

19   with the State Education Department and other

20   agencies in order to educate the populace of

21   the necessity to move forward with this as

22   quickly as possible?

23         COMMISSIONER SEGGOS:     Absolutely.   I

24   mean, I'm proud to say that we have one of
                                                      130

 1   the biggest Facebook and Twitter and

 2   Instagram followings in all of state

 3   government.

 4         Obviously that's not the only way to

 5   communicate with our youth.   We have a great

 6   camp program, we're opening up nature centers

 7   around the state, getting kids out there on I

 8   Love My Park Day with the Parks Department.

 9   I mean, these are all the ways in which we

10   will make stewards of the future.

11         And I think honestly, my view, the

12   bond act -- and the Governor has said this as

13   well -- the bond act is a chance to talk to

14   the people and make sure that, you know, we

15   are engaging everybody in this process of

16   restoring Mother Nature and making people

17   feel like even in their neighborhoods,

18   wherever they are, they have a chance to

19   weigh in and say, yeah, I've got some

20   blighted area, I want it improved.

21         SENATOR JACKSON:   So I was at the

22   signing of the Climate Leadership and

23   Community Protection Act, but there were

24   people outside that were demonstrating.    And
                                                        131

 1   I went up to them and talked to them, and

 2   they said that the goal as set by the

 3   Governor was not aggressive enough or

 4   asserted enough, that we needed to reach that

 5   goal by 2030.

 6            What's your opinion on that?   Quickly,

 7   if you don't mind.

 8            COMMISSIONER SEGGOS:   Sure.   Well,

 9   listen, I think the New York Times called it,

10   right, the most ambitious climate law of any

11   developed --

12            SENATOR JACKSON:   In the country.

13            COMMISSIONER SEGGOS:   -- state or

14   nation, for that matter.    So I think we

15   collectively, with the Legislature, nailed it

16   last year and now it's on us to put in place

17   this really ambitious program to meet the

18   goals.

19            I think what you hear is the

20   sentiment, as I mentioned in the beginning,

21   of people being afraid, being fearful of the

22   future, seeing terrible leadership at the

23   federal level and wanting to speak out.       I

24   don't begrudge them that.    But I think we're
                                                      132

 1   giving them real answers and actual real

 2   programs here in New York.

 3           SENATOR JACKSON:   And finally, you

 4   were here this morning when a demonstration

 5   occurred and they handed this out to all of

 6   the Senators at least up here, and

 7   Assemblymembers.

 8           What did you think of the

 9   demonstration that they had here in front of

10   you and in front of us this morning?

11           COMMISSIONER SEGGOS:   Well, as I

12   mentioned, right, when they cleared the room,

13   I don't begrudge their protests.    I feel for

14   them.   And I feel for where we are as a

15   planet with the damage that's been done to

16   the environment and the trend lines that

17   we're on in terms of climate change.

18           Again, I would maybe use some

19   different language in a public setting, but I

20   think the sentiment, the voice that they have

21   is a powerful one.   And I hope that all folks

22   in New York understand that New York

23   completely agrees, this is an issue that has

24   to be dealt with, is being dealt with, and
                                                      133

 1   you have a Governor that has leaned forward

 2   unlike any governor in the U.S., certainly

 3   any governor ever in New York.

 4         So I'm optimistic for the future.

 5         SENATOR JACKSON:   Thank you.

 6         COMMISSIONER SEGGOS:     Thank you.

 7         CHAIRWOMAN KRUEGER:      Thank you.

 8         Assembly.

 9         CHAIRWOMAN WEINSTEIN:     Assemblyman

10   Schmitt.

11         ASSEMBLYMAN SCHMITT:     Thank you.

12         Thank you, Commissioner, for being

13   here today.

14         COMMISSIONER SEGGOS:     Thank you.

15         ASSEMBLYMAN SCHMITT:     I represent New

16   Windsor and the area around Stewart, which

17   has faced PFOS/PFOA contamination.     I mean,

18   obviously, you know, there's been a great

19   working relationship with DEC, DOH and a lot

20   of the local communities in combating that

21   within my district and my region.

22         Is there any further update that you

23   can provide, any further funding mechanisms

24   that we should be expecting?    Obviously we
                                                      134

 1   have a lot of communities with water crises,

 2   pressures.   The Intermunicipal Water

 3   Infrastructure Grant program was very helpful

 4   to several of my communities.   We've gone

 5   over some of the concerns already with other

 6   questions regarding the process.   But if you

 7   could just elaborate on some of those things.

 8         COMMISSIONER SEGGOS:   Sure, I'd be

 9   happy to.

10         And one of the things I'm really proud

11   of, actually, is the way we responded in New

12   Windsor and Newburgh to that PFAS crisis.

13         As you know right now, obviously the

14   communities are drinking clean water.

15   There's water coming out of the Catskill

16   Aqueduct when it's operating that the state's

17   paying for -- and, when it's not, out of the

18   redundant ponds and lakes in the area that

19   are PFOS-free.

20         We put in place a

21   multi-million-dollars, tens of millions of

22   dollars system to provide a long -- well,

23   let's call it an intermediate to long-term

24   treatment option for Lake Washington.   And we
                                                      135

 1   know that system is going to work, we've been

 2   testing it online.    It was really

 3   well-designed, unlike anything that I've

 4   seen, certainly, in the U.S.    And it's --

 5   really right now we're going to have to talk

 6   to the communities to put them at ease about

 7   drinking the water out of a treated system,

 8   which is in my view a perfectly acceptable

 9   way to operate.

10         My view long-term is we've got to

11   prevent this material coming off the air base

12   in the first place.    DOD has been incredibly

13   slow to the ball -- not just here,

14   nationwide.   They've got a huge problem

15   nationally on PFOS in drinking water.     And,

16   you know, they did put in place some measures

17   to prevent ongoing discharges into one of the

18   holding ponds below the base.   They've been

19   just slow to the ball.

20         Their scope of work is limited.      You

21   know, they don't -- they're not as aggressive

22   as -- frankly, as we are.    And that's

23   surprising, because it's their pollution,

24   it's not ours.    But we understand our role.
                                                     136

 1   And in New Windsor installing lines to

 2   connect folks in their houses -- or private

 3   treatment systems in their own houses has

 4   been very effective.   And I appreciate your

 5   partnership in that area as well.

 6         ASSEMBLYMAN SCHMITT:    Absolutely.

 7         Getting to that point, the

 8   preservation and conservation of critical

 9   land, water recharge areas, et cetera, is of

10   paramount concern to those communities and

11   communities across my district.

12         Unfortunately, the Governor vetoed PDR

13   legislation for the Town of Chester this past

14   year, which really devastated the community.

15   They're very upset by that.   We've also had

16   countywide legislation that's passed the

17   Assembly, it's been held up in the Senate.

18         Would we be able to get a commitment

19   from you to work with the Legislature and the

20   Governor's office to not veto these items in

21   the future, and whether a stopgap measure

22   between future legislative resolution --

23   maybe we can open up a little bit more stream

24   of funding given we have the increased
                                                     137

 1   development pressures and these water

 2   contamination concerns.

 3         COMMISSIONER SEGGOS:    Listen,

 4   absolutely -- I would suggest this.     Why

 5   don't we set up a talk and go through the

 6   funds, the sources of funding that are

 7   available for watershed protection.

 8         Because that was one of the elements

 9   of the Clean Water Infrastructure Act when we

10   passed it, setting aside enough money so that

11   we do source-water protection programs and

12   actual acquisition of land.   We spent

13   $36 million I think through the Clean Water

14   Infrastructure Act over the last three years

15   on land preservation, and that's to protect

16   water quality.

17         So if there's particularly vulnerable

18   watersheds in your district and they're not

19   getting the funding they need, please have

20   them reach out to us -- and that certainly

21   goes for all folks in the room here -- reach

22   out to us and we'll help coach them through

23   the application process.

24         ASSEMBLYMAN SCHMITT:    Great.
                                                        138

 1            And real quick, before time is up,

 2   hunting and the outdoor sporting enthusiast

 3   activities in the Hudson Valley, a very

 4   passionate part of life for many people.

 5   New York State has had great R3 success, I

 6   believe, especially compared to other states.

 7            You know, one thing I see is access is

 8   regularly cited as one of the primary reasons

 9   that lapsed hunters no longer participate or

10   do not look to be reactivated.     Do you have

11   any ongoing -- we've had some positive news

12   with announcements this year, the last

13   hunting system, with some additional state

14   lands.    Are there any additional programs

15   that we should expect announcements on or

16   ways that we can collaborate going forward on

17   the access piece of R3?

18            COMMISSIONER SEGGOS:   Certainly.   And

19   the "Restore Mother Nature" Bond Act would be

20   a fantastic funding source for open space and

21   lands -- again, making those single

22   investments that have dual purposes.    Setting

23   aside watersheds to protect water may also be

24   fantastic hunting spots.
                                                       139

 1         We do have an access improvement

 2   program, both through NY Works and EPF, to

 3   improve access to our back country.   As

 4   somebody who went out eight times this year

 5   and got nothing, I'm looking forward to what

 6   access might come in the future.    But it's a

 7   top priority of mine, top priority of the

 8   agency's, and certainly the Governor.

 9         ASSEMBLYMAN SCHMITT:    Thank you,

10   Commissioner.   And look forward to having you

11   down in Orange County next season with me.

12         CHAIRWOMAN WEINSTEIN:     Thank you.

13         Senate?

14         COMMISSIONER SEGGOS:    Thank you.

15         CHAIRWOMAN KRUEGER:     Thank you.

16         Senator May is next.

17         I'm just trying to coordinate.       When

18   are you scheduled to protest?

19         (Laughter.)

20         CHAIRWOMAN KRUEGER:     Because you take

21   time away from everyone else, so I don't want

22   you to interrupt Senator May.

23         UNIDENTIFIED SPEAKER:     We're not here

24   to protest.   We're here to enforce and
                                                      140

 1   reinforce that we need money in the budget --

 2           CHAIRWOMAN KRUEGER:    I appreciate

 3   that.   That's why people come to testify.

 4   Okay?   Okay.   But the other folks took a

 5   couple of minutes, so I was just trying to

 6   estimate.

 7           Senator May, do you want to get

 8   started?

 9           SENATOR MAY:    Yes, thank you,

10   Madam Chair.

11           And thank you, Commissioner.

12           I do want to turn back to waste

13   issues, and starting with fracking waste.

14   You talked about that there's not fracking

15   waste coming in to be used in place of road

16   salt.   But my information is 635,000 tons of

17   fracking waste have been brought in from

18   Pennsylvania and sent to landfills,

19   especially upstate, where I represent.     And

20   Rolling Stone just did an expose about just

21   how toxic fracking waste can be and how

22   radioactive it is.     But DEC has so far not

23   chosen to regulate it as hazardous waste.

24           Is that on your radar?   Is that
                                                       141

 1   something that you're planning to do?

 2            COMMISSIONER SEGGOS:   It is,

 3   absolutely.

 4            And let me make sure I clarify

 5   something here.    There is no toxic fracking

 6   waste coming into New York State from any

 7   state.    What Pennsylvania had been sending in

 8   to New York State to a few landfills was

 9   drill cuttings, which is rock and dirt.

10            And I know those numbers have gone

11   down significantly.     As fracking has started

12   to dry up in Pennsylvania, there are fewer

13   wells being drilled.    I don't have the most

14   recent numbers.

15            But again, just to clarify, this is

16   not anything but rock and dirt from when the

17   wells themselves are drilled.

18            SENATOR MAY:   Okay, I have different

19   information, but I'll follow up with you

20   about that later.

21            COMMISSIONER SEGGOS:   Please.

22            SENATOR MAY:   Let me ask also about

23   the waste tire fee.     We all pay a couple of

24   dollars every time we buy a new tire; it must
                                                       142

 1   have mounted up to billions of dollars at

 2   this point.    Where does that money go?

 3            COMMISSIONER SEGGOS:   Well, it goes

 4   primarily into remediating waste tire piles.

 5   And there originally was at least 60 million

 6   tires known.    And over the years, we've been

 7   chipping away at the piles that are out

 8   there.

 9            I'm not sure how many tires are left.

10   We estimate something in the range of 2 to

11   4 million.    And that's what that money goes

12   towards, is remediating those really

13   complicated piles, which in some cases are

14   way out in the woods, grown over, and present

15   a public health problem when it comes to, you

16   know, water ponding within the tires.

17            And there's also -- we also have staff

18   that are on that fund that are implementing

19   the fund itself.

20            SENATOR MAY:   Is there a fund that is

21   transparent that, you know, we can sort of

22   check up on and see where that money has --

23            COMMISSIONER SEGGOS:   Sure, we'd be

24   happy -- I think somebody asked me this last
                                                           143

 1   year, and we presented some data on that.        Be

 2   happy to share that with you.

 3           SENATOR MAY:    Okay, great.    Thank you.

 4           Now, upstate we have a lot of flooding

 5   issues; we've talked about that a little bit

 6   so far.     But can you just say where in the

 7   budget money is for addressing flooding, say

 8   in the Mohawk Valley?     Is that -- I don't

 9   think it's the Clean Water Infrastructure

10   fund.   Are you estimating the bond act would

11   partly go to that.

12           COMMISSIONER SEGGOS:    Sure.    We --

13   following Hurricanes Irene and Lee, we

14   started to conduct these engineering analyses

15   of some priority water bodies in the

16   Mohawk Valley and found -- you know, based on

17   that engineering, we were able to front-load

18   projects.    Right?   We had ready, on the

19   shelf, engineering that a project -- and

20   Utica, Whitesboro, is a perfect example of

21   that.

22           Since then, we've done -- we are in

23   the midst of 41 other priority water bodies

24   around the state.      We're studying engineering
                                                         144

 1   issues surrounding flooding on those.     The

 2   "Restore Mother Nature" Bond Act would

 3   absolutely be designed to address those

 4   persistent flooding problems.     And we would

 5   look to the Mohawk Valley, which has had

 6   problems for years with flooding.

 7         Now, we also -- separately, NYPA, as

 8   you know, New York Power Authority, has

 9   proposed a reimagining of the canal system.

10   One of the big changes would be the reduction

11   in flooding of the Mohawk Valley.

12         So between what we're prepared to do

13   through our funding -- EPF, Clean Water

14   Infrastructure Act, Restore Mother Nature --

15   and what NYPA is going to do, I think you'll

16   see some significant changes within the next

17   few years on the Mohawk.

18         SENATOR MAY:    Great.    And the last

19   lightning-round question.      So one of the -- a

20   lot of the municipalities want to be able to

21   dredge waterways that run through them and

22   tend to flood.   And I hear all kinds of

23   conflicting information about whether that's

24   a good idea.
                                                       145

 1         Does DEC have a position on that?

 2         COMMISSIONER SEGGOS:     Well, listen, I

 3   think anytime you dredge a stream, it's

 4   usually not a good thing because what you do

 5   is you take away the natural function of the

 6   stream to slow the water down by spreading it

 7   out, and you create a flume.    And we saw some

 8   municipalities doing that right before Irene

 9   and Lee, and that actually exacerbated the

10   damage downstream.

11         So what we've been saying is don't

12   trench streams.   You can remove material from

13   streams, like logs.   Don't trench a stream.

14   Don't remove the rocks, don't straighten it

15   out, because you're inviting disaster.

16         And that's in fact what we're trying

17   to do in Whitesboro, which was take a flume

18   stream and restore the flood plain so that

19   you're slowing the flow of water coming

20   through there.

21         We do plenty of dredging projects in

22   calm water, whether it's lakes -- Lake

23   Ontario, we're -- the Governor mentioned,

24   through the REDI program, we're doing a big
                                                            146

 1   dredging initiative to deepen some of the

 2   harbors that had silted in over the years.

 3   And that's common-sense economics and

 4   environment.

 5            SENATOR MAY:   Thank you.

 6            CHAIRWOMAN KRUEGER:     Thank you.

 7            COMMISSIONER SEGGOS:     Thanks.

 8            CHAIRWOMAN KRUEGER:     Assembly.

 9            CHAIRWOMAN WEINSTEIN:    Assemblyman

10   Tague.

11            ASSEMBLYMAN TAGUE:    Good morning,

12   Commissioner.    Good afternoon.

13            First of all, I just want to thank you

14   for your dedicated service, not just to our

15   state but our country.

16            COMMISSIONER SEGGOS:    Thank you.

17            ASSEMBLYMAN TAGUE:     And I want to

18   thank you for being a man of your word.         Last

19   year at this hearing I asked you for an

20   in-person meeting, and you came to my office

21   and we had a great discussion.

22            So I'm going to put you on the spot

23   and ask you if we can do the same thing again

24   in the future.
                                                          147

 1           COMMISSIONER SEGGOS:     Absolutely.

 2           ASSEMBLYMAN TAGUE:    And I appreciate

 3   that.

 4           And I want to thank you for your

 5   staff, too, for doing an awesome job working

 6   together with my staff.      So thank you.

 7           My first question is -- well, actually

 8   not a question, but a statement.     I want to

 9   reiterate the same comments that

10   Senator Seward made with regards to the

11   Schoharie Valley stream-bank project.        And I

12   appreciate our discussions that we had last

13   year.   As you know, the county is still

14   struggling with that project.     And as we move

15   forward, I would say that Schoharie County

16   was probably the hardest hit county during

17   Irene and Lee.

18           And, you know, it's a very touchy

19   situation in that community, and whatever you

20   folks can do to continue to work with us to

21   help get that problem taken care of.

22           Secondly, in your remarks earlier you

23   discussed a measure, $33 billion being thrown

24   into the state.   I'm just wondering, do we
                                                       148

 1   have a system in place or a process in place

 2   that's going to hold this accountable, to

 3   make sure that the money that we're spending

 4   is going in the right place and that we're

 5   being successful?

 6         COMMISSIONER SEGGOS:     The short answer

 7   is yes, we have to.   I mean, those projects,

 8   the projects we envision through that

 9   incredible down payment -- I mean, offshore

10   wind, 9 billion of the 33 billion dollars,

11   that's a very public process.

12         And, you know, you're going to see

13   over the course of the next few years an

14   incredible buildout of that.    I'll let

15   NYSERDA address some of the specifics with

16   it.

17         Same things on land-based renewables.

18   You know, $6 million in land-based

19   renewables.   Some of those projects being

20   constrained by that existing Article X

21   process, which needs reform.    We need to be

22   able to get those projects, solar and wind,

23   through much more quickly.

24         The Green Bank, as you know, is a
                                                       149

 1   public process as well.    And the work that we

 2   do through the "Restore Mother Nature" Bond

 3   Act will absolutely be transparent.   It would

 4   involve, frankly, everyone here and all the

 5   voters in the state.

 6         ASSEMBLYMAN TAGUE:     Okay, thank you

 7   very much.   I appreciate that.

 8         I also just wanted to touch base with

 9   you again in the budget.   I did not notice

10   whether we increased our maintenance budget

11   with capital projects that have been done in

12   the past.    And we discussed this in our

13   meeting.    You know, just in my district

14   alone, Kaaterskill Falls, DEC did a wonderful

15   job up in the park with the trails.   But as

16   you know, outdoor projects, maintenance is

17   needed.

18         So I'm hoping that if extra money has

19   not been put in the budget for that

20   maintenance, then I think that it would --

21   also, my friends from the Adirondacks would

22   also be happy with making sure that we have

23   enough maintenance money in our budget to

24   take care of these places that are frequented
                                                        150

 1   by other New Yorkers and, by the way, people

 2   from other states and other countries.

 3         And that also brings me to there was a

 4   lot of discussion by Senator Little and my

 5   good friend Assemblyman Stec with regards to

 6   the Adirondacks.   I just want to put a throw

 7   in for the Catskills, where I represent.     And

 8   the Catskills are a great place, and

 9   hopefully we will get some funding in that

10   area too for tourism with regards to nature.

11         And lastly, Assemblywoman Fahy had

12   brought up the issue with tires, and I just

13   wanted to touch on that.    I want to commend

14   you, and I continue to support the

15   department's robust permitting process with

16   use of alternative fuels.    Many states across

17   our nation and even other countries have

18   approved alternative fuels, including tires,

19   and it may be a way to get rid of different

20   items that we're still holding onto that

21   we're not quite sure what to do with.

22         So I want to commend you, I want to

23   thank you for your time this morning.    And I

24   too am glad that you're back, and looking
                                                         151

 1   forward to having our meeting again.        Thank

 2   you.

 3          COMMISSIONER SEGGOS:    Great.   I look

 4   forward to the meeting as well.

 5          Certainly the Catskills, a big

 6   priority.   We're putting money into the

 7   visitor center right there on Route 28, or

 8   proposing to through the budget.    Our

 9   stewardship numbers are up as well.     Within

10   the EPF, we have NY Works funds going into

11   the Catskills, so that's a significant

12   portion of what we do.

13          And on to maintenance as well, it's

14   also an EPF stewardship and NY Works

15   function, and we've gotten good support from

16   the Governor and the Division of Budget now

17   for the last five years on that front.

18          ASSEMBLYMAN TAGUE:    Thank you.

19          COMMISSIONER SEGGOS:    Thank you.

20          CHAIRWOMAN WEINSTEIN:    Senate.

21          CHAIRWOMAN KRUEGER:     Thank you.

22          Senator Tom O'Mara.

23          SENATOR O'MARA:   Thank you,

24   Senator Krueger.
                                                      152

 1          Good afternoon, Commissioner.

 2          COMMISSIONER SEGGOS:   Senator.

 3          SENATOR O'MARA:   Thank you for your

 4   patience and your diligence in testifying

 5   here today.   Thank you for coming to meet

 6   with me last week and discussing some issues

 7   in general.

 8          I've got a few questions for you with

 9   regards to the polystyrene ban.   And

10   basically, have you looked at the

11   manufacturers that are in New York State and

12   the roughly 2,000 manufacturing jobs in

13   New York State, between food service

14   containers and Styrofoam packing peanuts?

15   And you've mentioned in your testimony about

16   repurposing these facilities.   Where are you

17   in that process?

18          COMMISSIONER SEGGOS:   Well, very early

19   on.   The proposed ban has just been set forth

20   by the Governor.

21          And again, it's not so much we would

22   repurpose the facilities but ultimately help

23   them open up new product lines that would be

24   acceptable here in New York State.   Again,
                                                      153

 1   they would still be able to sell polystyrene

 2   foam out of state, they're still capable of

 3   producing polystyrene foam for non-single-use

 4   purposes, such as in building materials and

 5   whatnot.

 6         But if there are alternatives -- and

 7   we know there are, compostable materials that

 8   can be used for single use that don't need to

 9   be thrown into landfills or cause health

10   problems -- we will help those businesses

11   over the next two years.   I mean, if this

12   goes into effect -- if this gets through the

13   budget and then becomes law, it doesn't go

14   into effect for two years.   And that two-year

15   period will be a significant amount of time

16   for us to help to transition the industry.

17         SENATOR O'MARA:    There's additional

18   language that I think Senator Kaminsky

19   mentioned earlier about giving the department

20   authority to review and limit or ban other

21   alternative products to the polystyrene food

22   containers or peanuts.

23         Why would one of these manufacturers

24   want to get into another product line that
                                                       154

 1   you may ban down the road on them?    And this

 2   language gives you authority to promulgate

 3   these regulations without coming back to the

 4   Legislature.

 5         COMMISSIONER SEGGOS:     Well, we would

 6   never do that.   Let me tell you why.   Because

 7   banning polystyrene is for a variety of very

 8   important reasons.   First of all, it contains

 9   benzene.   Polystyrene itself, styrene, is a

10   health hazard, a known carcinogen.

11         Secondly, they're single-use.      They

12   clog the waste stream.   New York City itself,

13   29,000 tons I believe last year of

14   polystyrene, single-use, disposed of in

15   landfills.   Incredibly expensive.

16         Those are the kinds of public health

17   and environmental products that we need to

18   get out of our waste stream.    That would be

19   the -- where we would turn within that

20   authority in the future, to the extent that

21   we see other types of products that are

22   presenting with similar kinds of problems.

23         And again, it would be done through

24   regulation, a very public process, public
                                                      155

 1   hearing, public comment.   And, you know, we

 2   know that by running these types of

 3   initiatives through a very robust regulatory

 4   process, it's an effective way to engage the

 5   public on it.

 6         SENATOR O'MARA:     Who in the industry,

 7   of the companies that are here in New York,

 8   has the department consulted with in this

 9   process?

10         COMMISSIONER SEGGOS:     I couldn't tell

11   you firsthand.    I know my staff has been

12   doing outreach.    And we will be doing

13   significantly more outreach over the coming

14   weeks and months as we start to put the

15   goalposts around this proposal.

16         SENATOR O'MARA:     I want to, you know,

17   applaud the Governor here on his effort on

18   product stewardship and what you mentioned,

19   product stewardship on mattresses and

20   carpeting, which is a great step and I think

21   builds upon what we've done with e-waste and

22   last year with paint stewardship.

23         Why wouldn't a stewardship program for

24   polystyrene be pursued?    My understanding is
                                                        156

 1   the industry would have interest in setting

 2   something up similar to a paint stewardship

 3   program to recycle and reuse this, rather

 4   than put it into the waste stream.

 5         COMMISSIONER SEGGOS:     Right.   Well, my

 6   understanding is that polystyrene is very

 7   difficult to recycle, unlike carpets or

 8   mattresses or any of the other products like

 9   e-waste that we worked on together a few

10   years ago, which are more easily recyclable

11   and have greater value.

12         It's much more difficult to put that

13   kind of value on things like packaging

14   peanuts and other types of polystyrene, which

15   just inherently are usually dirtier and

16   harder to handle when they get back, much

17   move contaminated.

18         SENATOR O'MARA:     I'm out of time, but

19   I would just encourage the department's

20   caution in moving forward when we're dealing

21   with 2,000 manufacturing jobs in the state

22   that are extremely important to our economy

23   in making these decisions of, you know,

24   totally banning a certain product.      But
                                                       157

 1   thank you.

 2         COMMISSIONER SEGGOS:     Thank you,

 3   Senator.

 4         CHAIRWOMAN KRUEGER:      Thank you.

 5         Assembly.

 6         CHAIRWOMAN WEINSTEIN:     Thank you.

 7         We've been joined by Assemblyman

 8   O'Donnell, chair of our Tourism Committee.

 9         And for a question, we go to

10   Assemblyman Colton.

11         ASSEMBLYMAN COLTON:      Thank you,

12   Commissioner, for your perseverance in

13   answering questions throughout the morning

14   and now the early afternoon.

15         COMMISSIONER SEGGOS:     Thank you,

16   Assemblyman.

17         ASSEMBLYMAN COLTON:      I was pleased to

18   note how the Governor clearly did state the

19   graveness of the climate change problem and

20   did talk about it right up-front in his

21   budget.    But there's a lot of frustrations,

22   especially by those who have been working on

23   the issue, as we saw at the beginning of this

24   hearing, because it's such an enormous
                                                      158

 1   challenge and we really are so -- at the

 2   early stages of dealing with it.      It's a

 3   worldwide challenge, really.

 4          I think one of the things that, you

 5   know, is important is that we come up with as

 6   much specifics as possible.    Now, last year

 7   we passed the CLCPA, which I think gives us a

 8   good foundation.

 9          (Loud applause from audience.)

10          ASSEMBLYMAN COLTON:    I think that

11   gives us a good foundation for dealing with

12   it.   But it's important that we begin to get

13   that up and running as quickly as possible.

14   I understand it has to be done properly, but

15   we do need to get it up and running.

16          (Loud applause from audience.)

17           CHAIRWOMAN KRUEGER:    We're on a time

18   limit, so we're asking people not to applaud.

19   You know (gesturing).    Thank you.

20          (Laughter.)

21          ASSEMBLYMAN COLTON:    Now, there's a

22   couple of specific things that I just would

23   like to question on.    One of them is the

24   whole issue of charging stations.     In order
                                                       159

 1   to be able to really get to 100 percent

 2   renewable energy, cars and transportation are

 3   going to be a critical part of that.

 4            Has there been some -- and, you know,

 5   there has been some -- the Thruway proposal I

 6   think is very good, but I think we have to go

 7   much beyond that.    Has there been any thought

 8   of ways to develop a private/public

 9   partnership in terms of encouraging charging

10   stations and fast-charging stations to be

11   implemented in as many parking lots as

12   possible and to get everyone's cooperation?

13   And what incentives might be needed in order

14   to accomplish that?

15            COMMISSIONER SEGGOS:   Yes.   I mean,

16   absolutely.    I'll have NYSERDA and DPS get

17   into that more after me, because it's more in

18   their wheelhouse than it is in mine.

19            But the Governor has noted, you know,

20   the extreme increase in EVs here in New York

21   State.    We're in the top three states.    But

22   we've got to do more to build out the

23   infrastructure, because I think we see a

24   future where everyone is driving an EV.     I
                                                      160

 1   expect that to be part of what the Climate

 2   Action Council comes up with.   If we don't

 3   start making these investments now in the

 4   infrastructure, obviously we'll be behind the

 5   eightball.

 6         But this is a great growth opportunity

 7   for New York State.    The NYPA-Thruway

 8   Authority investment is a good one.   We've

 9   started to do it more.   As you note, here in

10   this building, in this parking lot, there are

11   now charging stations.   My office parking lot

12   has a charging station as well.   Those are

13   great for state facilities, but we need to

14   make them available to the general public.

15   And I encourage you to ask my counterparts

16   from NYSERDA and NYPA and DPS some of the

17   specifics on what they're up to on that.

18         ASSEMBLYMAN COLTON:    Yeah.   Because I

19   think one of the things is we have to get out

20   in front of the ball on this issue, and on

21   many of the environmental issues.    So thank

22   you for that answer.

23         Also, in terms of the Williams

24   Pipeline, I also was pleased with the way DEC
                                                      161

 1   has handled this issue and the way the

 2   Governor has handled it in terms of

 3   National Grid.   Many of my constituents were

 4   very badly impacted by the denial of service

 5   to new accounts.

 6         Is there any legislation that may be

 7   needed or any way that we can change the

 8   process so that one of the things that should

 9   be considered in permitting or in approving

10   permits is the issue of the state's target of

11   renewable energy by -- you know, I was one of

12   the ones who think we should do it by 2030 --

13   but 2045 -- 2040, 2045.   Is there any changes

14   that we might make to the authority of the

15   agency to be able to consider the state's

16   energy policy in terms of converting to

17   renewable energy?

18         COMMISSIONER SEGGOS:   Well, listen, I

19   think what you all did last year with the

20   Governor to enact the world-known climate law

21   is going to be a fantastic opportunity for us

22   to chart out what we need to do

23   legislatively, regulatorily and

24   administratively to meet those goals.
                                                        162

 1           So I think you've already done that.

 2   What we need to do is get the meetings going

 3   this year as quickly as possible and begin

 4   pumping out ideas to both the Executive, the

 5   agencies and the Legislature as to how we can

 6   meet these goals.

 7           ASSEMBLYMAN COLTON:    And I appreciate

 8   that.   My time is up.   But as I said, this is

 9   very urgent and I appreciate your answers and

10   the Governor's comments on this.

11           COMMISSIONER SEGGOS:   Thank you, sir.

12           CHAIRWOMAN KRUEGER:    Thank you.   And

13   do me a favor, just turn around so everyone

14   will see that you saw.

15           (Laughter.)

16           COMMISSIONER SEGGOS:   (Turning.)

17           (Audience waving signs.)

18           COMMISSIONER SEGGOS:   Hi, everybody.

19   Thanks for coming.

20           CHAIRWOMAN KRUEGER:    Thank you.

21           And, I'm sorry, I'm just going to bat

22   cleanup a little bit for the Senate.     Is this

23   on?   I think it is.   Yes, thank you.   Thank

24   you, everyone, for their patience.
                                                         163

 1         I know there were some questions by

 2   Senator May about the fracking and that the

 3   Governor wants to make the moratorium

 4   permanent, which we're very excited about.

 5   But why did he not include gel fracking as

 6   well as liquid fracking in the language?      Gel

 7   propane fracking.   Thank you,

 8   Senator Metzger.

 9         COMMISSIONER SEGGOS:    Yeah, good

10   question.   I mean, we're proposing to ban

11   fracking permanently.   Whether or not that

12   should extend to propane gel, I can't comment

13   at this time.   But there are I don't believe

14   any pending applications of propane gel

15   fracking in front of the agency.   There was

16   at one point, I think it -- I'd have to check

17   with my team to see whether or not it exists

18   any longer.

19         But we would have concerns with

20   putting propane gel in the ground for the

21   purposes of fracking.

22         CHAIRWOMAN KRUEGER:    So I would

23   suggest you take a look at the bill

24   Senator Metzger and I have introduced, and
                                                        164

 1   the language in it.    Because we think that is

 2   the language that should be in Article VII

 3   language.     It would -- it just seems common

 4   sense, why would we want to inject petroleum

 5   products into the ground to bring natural gas

 6   out?     The whole thing is sort of a double

 7   whammy for us, so to speak.

 8            COMMISSIONER SEGGOS:   Be happy to take

 9   a look at it.

10            CHAIRWOMAN KRUEGER:    Thank you.

11            COMMISSIONER SEGGOS:   Thanks.

12            CHAIRWOMAN KRUEGER:    So sometime in

13   the next -- let's see, how much time do you

14   have.    Under the CLCPA, DEC has until the end

15   of the year to conduct a rulemaking to

16   establish a social cost of carbon for the

17   state.    When do you expect the regulatory

18   process to commence, and what models will DEC

19   be using to look at to inform the process?

20            COMMISSIONER SEGGOS:   Well, the

21   regulatory process is underway at DEC right

22   now.    It has been for some time.   So we hit

23   the ground running right when the law passed

24   so we can turn that around to the public
                                                      165

 1   through the regulatory rulemaking process.

 2         And I expect at some point, probably

 3   in the spring, summer, that will be out in

 4   draft form and folks will have a chance to

 5   see how we've come up with the various

 6   numbers we do.

 7         CHAIRWOMAN KRUEGER:    How much money do

 8   you think the state needs to invest on an

 9   annual basis to make sure that we're meeting

10   our Climate Action Plan targets over the next

11   several years?

12         COMMISSIONER SEGGOS:   It's a good

13   question.   I mean, I think the number that's

14   been put out there, again, is a number that

15   didn't exist at all -- certainly not five

16   years ago, not a year ago.   We're talking

17   about making those investments in a strategic

18   way, building into it the bond act monies,

19   integrating all the spending that's going on

20   at NYPA, NYSERDA, DPS, all the private

21   investments.

22         I don't think we know the number yet,

23   what is needed on an annual basis.   But I

24   think what we have in front of us now is a
                                                          166

 1   significant down payment towards what we know

 2   we will need.    We need the Climate Action

 3   Council to do its work, present us with the

 4   scoping plan, present us with the vision for

 5   the future for the economy-wide investments.

 6   And I think that will inform really what's

 7   needed on an annual basis.

 8            We want to get ahead of that by

 9   tapping into the offshore wind movement,

10   getting those turbines built.    Same thing

11   upstate on solar and on on-shore wind.        So

12   this is a -- it's an exciting time to be part

13   of an administration that is leading so

14   boldly on this.

15            CHAIRWOMAN WEINSTEIN:   Thank you.    And

16   then last, so I'm from New York City, so

17   we're particularly concerned downstate about

18   the fact that there is a study going on, a

19   New York/New Jersey harbor and tributary

20   study.    The state has to pick up 25 percent

21   of the $20 million cost for the Army Corps of

22   Engineers.    There are any number of people

23   who have been concerned that various

24   proposals being made by that group might
                                                       167

 1   flood one section of the region to save

 2   another section.

 3         So how is DEC engaging in this

 4   process, considering I think most of us think

 5   none of New York ought to flood?

 6         COMMISSIONER SEGGOS:   I would agree.

 7         CHAIRWOMAN KRUEGER:    Particularly if

 8   you're spending that kind of money to try to

 9   come up with a plan to avoid that.

10         COMMISSIONER SEGGOS:   I would agree.

11   And listen, that's an Army Corps process.    We

12   are the local sponsor for the study itself.

13   I don't think anyone would disagree that we

14   need to study alternatives to the current

15   system, which right now leaves all of lower

16   New York really exposed -- Long Island,

17   New York City -- to storm surges.    We see in

18   Sandy our sea level rise.

19         So we clearly need to think big.    You

20   know, the one that got the most attention

21   last week at the presidential level with, you

22   know, the proposal for a huge storm wall that

23   costs $119 billion -- listen, that's one of

24   five alternatives, maybe there's more than
                                                        168

 1   five alternatives out there.     We've got to

 2   throw everything against the wall and see

 3   what makes sense.

 4            And ultimately, you're absolutely

 5   right, no section of New York City, no

 6   section of New York should be allowed to

 7   flood.     But we have to take, you know, the

 8   most aggressive steps to understand what our

 9   options are.     And I'm not sure we've weighed

10   in specifically on one alternative or

11   another.

12            I happen to think that $119 billion

13   for a wall doesn't make a lot of sense if

14   there are better alternatives.     But I need to

15   see all those alternatives and then, you

16   know, we'd be coming back, you know, to the

17   Army Corps with our preferred alternative.

18            CHAIRWOMAN KRUEGER:    And so is DEC

19   participating?

20            COMMISSIONER SEGGOS:   Oh, absolutely.

21            CHAIRWOMAN KRUEGER:    Because I don't

22   want New Jersey to win because they went to

23   the meetings.

24            COMMISSIONER SEGGOS:   New York always
                                                          169

 1   beats New Jersey, come on.

 2           (Laughter.)

 3           COMMISSIONER SEGGOS:    We are

 4   absolutely at the table.    I mean, we're at

 5   the table with our New Jersey counterparts.

 6   They flooded during Sandy as well.       They lost

 7   lives during Sandy as well.      We have a

 8   shared -- a harbor, shared waterfront.       We

 9   need to work jointly with them, with the

10   Army Corps, on solutions.

11           So whatever system is put in place,

12   whatever system we agree on is going to be

13   something that protects lives in both states.

14           CHAIRWOMAN KRUEGER:     Thank you very

15   much.

16           COMMISSIONER SEGGOS:    Thank you,

17   Senator.

18           CHAIRWOMAN KRUEGER:     Assembly.

19           CHAIRWOMAN WEINSTEIN:    Assemblyman

20   Otis.

21           ASSEMBLYMAN OTIS:   Hi, Commissioner,

22   how are you doing?

23           COMMISSIONER SEGGOS:     Good.   Good to

24   see you.
                                                     170

 1         ASSEMBLYMAN OTIS:   Nice to see you.

 2         There were a lot of comments today

 3   about the water infrastructure spending,

 4   which is tremendous.   And people -- you

 5   didn't have an opportunity to mention, but

 6   that 2019 was a watershed year because it was

 7   the first year that the municipal water

 8   grants amount exceeded the EPF, 300 million.

 9   And so that is testimony to how the program

10   has grown.

11         And so the two things I'd like to

12   share today and ask you a question about is,

13   number one, what we're hearing is the need is

14   going to continue.   And the need is out

15   there, municipalities are getting their

16   projects together.   And so the fact that

17   there's funding going forward is great.

18         It's also a model -- when I look at

19   the language in the bond act proposal and the

20   different kinds of things we're trying to

21   protect, there is a thread and maybe an

22   opportunity to grow a different kind of water

23   funding, and that is stormwater funding.

24   Because a lot of the things we're trying to
                                                        171

 1   protect in the bond act are impacted by the

 2   quantity of stormwater and the quality of

 3   stormwater.

 4           So your thoughts about using the bond

 5   act as an opportunity to grow some of our

 6   existing programs or create new programs to

 7   deal with the stormwater needs of

 8   municipalities.     One program that is a small

 9   program that maybe we could grow is the Green

10   Innovation Grant Program, which has been at

11   15 million for a few years.    Great innovative

12   projects come out of that.     And maybe that is

13   one vehicle by which we can -- like we grew

14   the wastewater and drinking water programs in

15   the last few years, maybe we can grow some

16   assistance to municipalities for stormwater

17   through that or other things that we come up

18   with.

19           So your thoughts about that and

20   feeding the bond act money in that direction.

21           COMMISSIONER SEGGOS:   Sure.   Thank you

22   for raising that.    Absolutely.   I think it's

23   central to the bond act concept, is the idea

24   of better controlling water.     Right?   That's
                                                     172

 1   the problem that we sustain with climate

 2   change and severe storms, is flooding,

 3   primarily.

 4          So how do we slow the flow of water

 5   off the landscape, how do we contain more of

 6   it?   And it's not typically through creating

 7   lots of huge concrete structures, it's by

 8   creating more green space and being smarter

 9   about how we channel stormwater.

10          So I think absolutely, all of these

11   things that we're talking about with habitat,

12   reconnecting streams, dams, even shellfish,

13   restoring some of the natural functions of

14   the planet here in New York, would involve

15   stormwater controls.

16          And we would look to where the

17   problems are locally across the state --

18   Westchester or anywhere else where you have

19   lots of runoff problems -- and see what we

20   can do to put those public monies towards

21   that public purpose of -- and then you

22   benefit from all the habitat improvements as

23   well, so it's really -- it's an all-in

24   approach.
                                                       173

 1          ASSEMBLYMAN OTIS:   Thank you for the

 2   good work of DEC and EFC on these matters.

 3   And I also thank you that in the Governor's

 4   budget is a proposal to give you more

 5   flexibility for lending to higher-needs

 6   communities for water projects.     I have a

 7   bill on that, so I'm happy that I have one

 8   less bill I have to pass because it's in the

 9   budget.   So thank you.

10          COMMISSIONER SEGGOS:    Great.   Thank

11   you.

12          CHAIRWOMAN WEINSTEIN:    Senate.

13   Senator Ortt.

14          CHAIRWOMAN KRUEGER:     Thank you.

15   Senator Ortt.

16          SENATOR ORTT:   Thank you,

17   Commissioner.

18          I just have two quick questions.     One

19   is a point of clarification on the ban on

20   Styrofoam.   Does that extend to incoming

21   shipments, whether they be from outside of

22   New York, wherever it was, or does that only

23   extend to New York-based companies and things

24   originating from the state?
                                                           174

 1            COMMISSIONER SEGGOS:      So you get a

 2   package from Amazon or something that comes

 3   from another state that contains polystyrene,

 4   that would not be banned.        It would be banned

 5   only if it's being generated here in the

 6   state.    Right?

 7            So a product being sent for shipment

 8   from, you know, Buffalo-Niagara to Albany

 9   couldn't put polystyrene into it.

10            SENATOR ORTT:   And if somebody from

11   Buffalo is shipping something to Ohio, it

12   also would apply, though; correct?

13            COMMISSIONER SEGGOS:      That would

14   apply, yes.

15            SENATOR ORTT:   Okay.     And the only

16   reason I raise it, of course, is because

17   invariably it adds a potential burden, cost,

18   onto New York State companies that they do

19   not, you know, have to share with

20   competitors.    So that's just a concern of

21   mine.

22            And then on Lake Ontario, I know

23   you're very well aware of the flooding and

24   such that has occurred the last several
                                                       175

 1   years.    Forgetting, you know, the Plan 2014

 2   for a second and the IJC and sort of, you

 3   know, the debate over the impact of rainfall

 4   versus Plan 2014, what is the DEC doing, I

 5   guess in the short term, to assist homeowners

 6   who live along Lake Ontario when it comes to

 7   permits, when it comes to work, when it comes

 8   to, you know, a shoreline stabilization,

 9   things of that nature?

10            Obviously there's been a lot of focus

11   on the money that the state has put in there,

12   emergency management personnel.    You know,

13   ESD has been involved.   I mean, a lot of

14   other agencies, clearly.   But, you know,

15   obviously from a day-to-day, the DEC has a

16   lot of impact and oversight over that

17   shoreline.

18            What is your department or your agency

19   doing in the short term to assist homeowners

20   as we go forward, if this is the new normal?

21   If this is the new normal, what can we do

22   together with our homeowners to make it

23   easier for them to protect their properties?

24            COMMISSIONER SEGGOS:   Right.   And
                                                          176

 1   before I go there, I gave you the wrong

 2   information.    If the product is going out of

 3   state, polystyrene, we can't regulate state

 4   to state, interstate commerce issues.       So

 5   just to be clear.

 6            SENATOR ORTT:   Okay.

 7            COMMISSIONER SEGGOS:    So if it was

 8   going into another state.

 9            SENATOR ORTT:   So it would be

10   interstate.

11            COMMISSIONER SEGGOS:    Interstate,

12   right.    Correct.

13            SENATOR ORTT:   Okay, got it.    Okay,

14   thank you.

15            COMMISSIONER SEGGOS:    Okay.    So yeah,

16   flooding on Lake Ontario, the St. Lawrence

17   River, has been something that we have -- as

18   you know, we've spent time with you on this.

19   A significant issue the last two out of three

20   years.    High water right now, I'm looking at

21   potential high water again in the coming

22   months.    So something that's honestly on the

23   front of my mind as we start to pivot

24   towards, in these calm winter months, towards
                                                      177

 1   what we have to do in the summer.

 2         On the permitting side, I put in place

 3   a general permit last year, an expedited

 4   permitting review to get all the shoreline

 5   work done quickly.   Not just the big projects

 6   that we are looking at through the REDI

 7   Commission, which I know you are well aware

 8   of and a part of, but all of the little

 9   projects along the way.   How do we, you know,

10   incentivize fast reviews and get things done

11   on a more comprehensive basis.

12         And honestly, over the last two flood

13   cycles we've got thousands of permits through

14   DEC in, you know, as little as 24 to 48 hours

15   for rebuilding in kind.

16         What the Governor talked about last

17   year, last summer in particular, and then

18   into the fall when we made the REDI

19   announcements -- was preparing for the

20   future.   Because I think what we're seeing

21   now is an enormous amount of water in the

22   whole system, not just Lake Ontario.

23   Lake Erie is higher than ever.   And then if

24   you keep going up the Great Lakes, there's
                                                       178

 1   more and more water.

 2         So we're expecting that this is going

 3   to be maybe the new normal.   We've got to

 4   rebuild the entire shoreline over time.    The

 5   projects that the Governor announced in the

 6   spring set us towards some significant

 7   success -- $300 million on I think

 8   113 projects.   Municipal projects getting,

 9   you know, critical infrastructure out of the

10   floods' ways and then getting, you know,

11   other public infrastructure protected and

12   rebuilt.

13         Homeowners, you know, right now my

14   focus is on ensuring with either Homeland

15   Security or other agencies that we have the

16   materials in place right now, or will before

17   the next floodwaters rise, to protect those

18   houses again.   And people are going to need

19   to make assessments as to, you know, what

20   kinds of improvements they need on their

21   houses.    I know there are other agencies that

22   can answer the housing questions.

23         But we're leaning forward on this,

24   Senator.   We don't want permitting to be a
                                                        179

 1   barrier to someone improving one's house.

 2   And honestly it's all I think about come May

 3   when we're going to be having --

 4           SENATOR ORTT:   Me too.

 5           COMMISSIONER SEGGOS:    I know, you

 6   think that too.     And a lot of us are, you

 7   know, fully engaged in this really until the

 8   floods subside.

 9           SENATOR ORTT:   Thank you very much for

10   your answers, Commissioner.

11           COMMISSIONER SEGGOS:    Thank you so

12   much.

13           CHAIRWOMAN KRUEGER:     Thank you.

14           Assembly.

15           CHAIRWOMAN WEINSTEIN:     Assemblyman

16   O'Donnell.

17           ASSEMBLYMAN O'DONNELL:     Good

18   afternoon.

19           As we've learned in my lifetime, it's

20   not nice to fool Mother Nature.     And I'm very

21   curious about the "Restore Mother Nature"

22   Bond Act.    It's rather grandly named.      And

23   included in that is the creation of two new

24   parks along Hudson River.
                                                      180

 1         So how did you come up with the idea

 2   on the locations for those, and what is the

 3   time frame that you imagine?

 4         COMMISSIONER SEGGOS:     Great question.

 5   If I could have you ask that to my friend

 6   Erik Kulleseid, commissioner of Parks, who

 7   will be helping to build those projects out.

 8   He has served as the ideas behind that.   I

 9   know it came out of the communities as well.

10         ASSEMBLYMAN O'DONNELL:     So are you

11   just delivering the money to them and they're

12   going to be the people who put the park

13   together?

14         COMMISSIONER SEGGOS:     Well, the money

15   would come obviously from the voters through

16   the budget to all state agencies for projects

17   or to municipalities, however -- you know,

18   however it ends up getting finalized.

19         But in that case the acquisition of

20   land, the preparation of land to become a

21   state park, that would be, if it was -- if it

22   gets through, would be at the direction of

23   the Parks Department.

24         ASSEMBLYMAN O'DONNELL:     And what is
                                                           181

 1   the price tag for that?

 2            COMMISSIONER SEGGOS:   I'm not sure.     I

 3   know that certainly Erik would have a better

 4   sense of it.

 5            ASSEMBLYMAN O'DONNELL:   Okay.   Would

 6   the Parks Department have access to other

 7   resources from the "Restore Mother Nature"

 8   Bond Act other than the creation of these two

 9   parks?

10            COMMISSIONER SEGGOS:   Absolutely.   And

11   in fact both DEC and Parks, as well as many

12   other agencies, we all have our existing

13   funding sources, some of which have been

14   well-developed over the years.     This new one

15   would be additive to our existing funding

16   sources and frankly would allow, to the

17   extent that the funds are appropriated for

18   any purposes at our agencies, would allow us

19   to do far more than ever to ensure that our

20   open spaces are protected and the habitats

21   restored and there's access opportunities for

22   communities that have been cut off for so

23   many years from nature.

24            ASSEMBLYMAN O'DONNELL:   So there's a
                                                      182

 1   lot of focus on moving away, on reducing

 2   New York State's carbon footprint, obviously.

 3   The people who were standing up before would

 4   probably say we're way behind on that.     And

 5   so the question I have is, do you have plans

 6   to expand -- let's just use as an example

 7   solar on state lands, whether they be

 8   parklands or, more importantly, when I was

 9   Corrections chair, I went to 38 prisons, and

10   there's a lot of open land there where you

11   could easily put solar panels.

12         And the other benefit would be you

13   could then create a training program for

14   inmates to learn how to install them and fix

15   them so when they get out of prison they have

16   a skill that's much more 21st-century

17   marketable than other skills and would work

18   better for many of the people who are there.

19         So is there any plans to try to get

20   correctional facilities, state parks and

21   other state lands to increase the solar

22   footprint?

23         COMMISSIONER SEGGOS:   Well, that's a

24   great idea about using our prisons for these
                                                        183

 1   reasons and these purposes.

 2            Absolutely.   We would think, you know,

 3   what lands are the most appropriate for the

 4   buildout of this expanded network of

 5   renewable solar and wind.     There's an

 6   enormous amount of land out there -- whether

 7   it's in state hands or not, I can't say --

 8   but brownfields, Superfund sites, industrial

 9   sites, former industrial sites, quarries, you

10   know, on and on and on.     Impacted land that

11   we will look to build out and prioritize.

12            We'd look to the Climate Action

13   Council for some advice on this, but this is

14   absolutely one of the things we would be

15   looking at.    You know, at certainly some

16   parks.    Parks have good administrative

17   buildings and other spaces that we can use

18   for renewables, solar.

19            I would prefer not to get into the

20   business of, you know, putting renewables on

21   truly virgin space, green space, because I

22   think we have a significant portion of land

23   that's already heavily impacted.

24            And your concept of working with DOCCS
                                                       184

 1   to both do some job training, on-the-site job

 2   training there, as well as using the roof

 3   space and open space, is a good idea.

 4         ASSEMBLYMAN O'DONNELL:      Well, I thank

 5   you for that compliment.     Maybe if you were

 6   to go across the street and not tell anyone I

 7   came up with it, maybe it has a chance on

 8   making it happen.    Okay?

 9         COMMISSIONER SEGGOS:      Nobody's here

10   right now.   No one's watching.

11         ASSEMBLYMAN O'DONNELL:      Okay.   Thank

12   you very much.

13         COMMISSIONER SEGGOS:      Thanks.

14         CHAIRWOMAN WEINSTEIN:       Thank you.

15         I just have a couple of questions that

16   amazingly haven't yet been gotten to.     And

17   really just to follow up maybe in a little

18   detail of some of the members that did raise

19   questions about the Clean Water

20   Infrastructure Act of 2017.

21         I know that 200 million was set aside

22   for projects in the New York City watershed,

23   north of New York City, and that projects

24   were identified.    Has the funding gone out to
                                                      185

 1   those projects?   And if not, when can we

 2   expect it?

 3         COMMISSIONER SEGGOS:    I don't believe

 4   the funding has gone out yet.   I know there's

 5   been communications between the city and

 6   state about those monies.

 7         My understanding is that they're

 8   nearing a point at which the funds will be

 9   released.    I can give you some specifics on

10   that probably this week and let you know what

11   the latest is.    But I think there's been

12   positive back-and-forth.

13         CHAIRWOMAN WEINSTEIN:     And then maybe

14   just a quick update on the status of the

15   other various components of the Clean Water

16   Act, the obligations, other disbursements

17   made so far, and how much remains unobligated

18   of the original $2.5 billion.

19         COMMISSIONER SEGGOS:    I did not bring

20   the detailed numbers.   I'd be happy to get

21   that to you.   You know, there are a number of

22   specific pots, obviously, that were set aside

23   for specific purposes, and I can get that to

24   you this week also.
                                                         186

 1            By and large, the funding sources are

 2   heavily subscribed.    We have great

 3   competition for those dollars, and usually

 4   oversubscription.     So I would venture to say

 5   at this point that most of those funds are

 6   either out the door or are allocated already

 7   toward specific projects.    But I can get you

 8   the actual breakdown.

 9            CHAIRWOMAN WEINSTEIN:   That would be

10   great.

11            And is there a spending plan for the

12   new 500 million that's in this year's

13   Executive Budget?

14            COMMISSIONER SEGGOS:    I think we would

15   look to continue certainly the municipal

16   grants, the grants that have been going out

17   the door -- you know, continue

18   proportionally, as we have the last five

19   years.

20            So that the -- we don't envision

21   changing any of the language within the law.

22   It's been very effective.    It's -- whether

23   it's intermunicipal or whether it's just

24   straight-up WIIA grants, again, all very
                                                          187

 1   popular programs.    And we talked earlier

 2   today, obviously, about some of the ways in

 3   which we can help some of the smaller

 4   municipalities tap into those pots, and I

 5   think that might be more of my focus in the

 6   short term.

 7            CHAIRWOMAN WEINSTEIN:     Thank you.

 8   That concludes the Assembly's questions.

 9            Oh, I am mistaken.     Mr. Palmesano, who

10   has joined us, had a question.

11            ASSEMBLYMAN PALMESANO:    Thank you,

12   Madam Chairwoman.

13            Thank you, Commissioner, for your

14   time.    I know it's been a long day --

15            COMMISSIONER SEGGOS:     Thank you.

16            ASSEMBLYMAN PALMESANO:     -- I kind of

17   got here on the back end, and so I had a

18   couple of questions to ask you regarding the

19   CLCPA.    I've had plenty of discussion with my

20   friend and colleague back here

21   Mr. Englebright over the past years on the

22   issue.

23            Thirty-three -- I'm going to try to

24   get a couple of questions in one because of
                                                     188

 1   the time.   Thirty-three billion is certainly

 2   an ambitious and costly spending, investment,

 3   however you want to refer to it.   This is

 4   going to be picked up by the taxpayers,

 5   ratepayers, the farmers, the manufacturers,

 6   who are going to be assessed with higher

 7   utility costs and taxes along the way,

 8   correct?

 9         COMMISSIONER SEGGOS:   Well,

10   Assemblyman, I'll have you, if you can, raise

11   the ratepayer question to either the

12   Department of Public Service or NYSERDA.

13         ASSEMBLYMAN PALMESANO:   I'll do that.

14         COMMISSIONER SEGGOS:   My understanding

15   is that they have answers for how those

16   particular funds, those pots of funds, would

17   be applied and paid for.

18         Part of the $33 billion, as we've

19   talked about today, is the "Restore Mother

20   Nature" Bond Act, which again is more within

21   DEC's purview.   Those are -- or those

22   ultimately, if the voters say yes, it would

23   be coming out of -- it would be, yes, from

24   the taxpayer.
                                                     189

 1         ASSEMBLYMAN PALMESANO:   I do have a

 2   question on that too.   Given that the CLCPA

 3   only affects New York State and given that

 4   New York State only contributes 0.5 percent

 5   of the total carbon emissions in the world

 6   and only 3.3 percent of the total carbon

 7   emissions in the United States, what

 8   significant impact is this really going to

 9   have on the total carbon emissions that we're

10   having going out in the world when Russia,

11   China, India, Pennsylvania, Ohio,

12   North Carolina aren't participating?

13         And how will we also deal with the

14   impact of carbon leakage when these

15   businesses, manufacturers, farmers leave

16   New York -- because there's no place for them

17   to do business here anymore because of the

18   costs that we talked about that you've

19   acknowledged -- are going to be going to

20   other states, and then if you don't have

21   strict regulations, the carbon leakage is

22   going to get up.

23         So what have we actually accomplished?

24   Is it that you just think that we're going
                                                         190

 1   to -- the Governor thinks we're just going to

 2   lead the country and the world in this and

 3   that other places are going to keep following

 4   suit and follow us right along the way?       And

 5   if your answer to that question is yes, I

 6   have a bridge to sell you a little further

 7   south from here that's only going to cost no

 8   more than $4 billion.

 9         COMMISSIONER SEGGOS:     Well,

10   respectfully, I think if we don't step out,

11   no one's going to.   I mean, we have a federal

12   government that's in full retreat.     They

13   walked away from the Paris Accords, which

14   would have frankly done internationally

15   what -- the problem that you're tapping into.

16         And I think the Governor saw this

17   coming a few years ago when the President

18   pulled out of the Paris Climate Accords,

19   starting the U.S. Climate Alliance with

20   California and other states.    Now it's more

21   than half the U.S. population subject to the

22   U.S. Climate Alliance, and all states having

23   made a commitment to do perhaps not as much

24   as New York has proposed to do or committed
                                                     191

 1   to do, but nonetheless picking up and working

 2   collaboratively on that.

 3         There are other programs that we do

 4   multistate that address that exact problem.

 5   One of them is RGGI, the Regional Greenhouse

 6   Gas Initiative.   The CLCPA, the Climate

 7   Action Council is going to look at issues of

 8   carbon leakage, issues of collaboration with

 9   other states.   I mean, there are a lot of

10   initiatives underway, multistate initiatives,

11   that the Climate Action Council will probably

12   take up and recommend thumbs up or down for

13   New York.

14         We are entirely mindful of carbon

15   leakage creating problems here in New York

16   that ultimately push carbon elsewhere or push

17   jobs out of the state.   The way that the law

18   was drafted, in my view, was really effective

19   in recognizing the coming problems if you

20   don't do this right.

21         So bringing in a workforce component,

22   bringing in a jobs components, recognizing

23   all sectors of the economy needed to be part

24   of putting this scoping plan together, I
                                                     192

 1   think ultimately is going to put the state

 2   out in a leadership position, but we're not

 3   going to be alone because other states see

 4   that we're going to start tapping into a

 5   massive jobs opportunity here.   And that's

 6   really, for me, what I think the big legacy

 7   of this is going to be, is yes, we're leading

 8   the state towards a green economy, a green --

 9   fewer emissions, but we're moving it towards

10   a greener economy, which I think is going to

11   be sustainable for decades to come.

12         ASSEMBLYMAN PALMESANO:     Thank you.

13         And on the issue of carbon emissions,

14   I'm not here saying that we shouldn't be

15   doing something.   My concern was that it

16   seems like we're doing it alone and the

17   impact it's going to have.

18         But when we talk about carbon

19   emissions, the New York Independent System

20   Operator puts out a report annually.   And is

21   it not a fact from the reports, and it's been

22   documented, over the past 20 years carbon

23   emissions have decreased because of natural

24   gas replacing coal and oil and dirtier
                                                       193

 1   burning fuels by -- you know, with New York

 2   City replacing all the oil boilers and

 3   dirtier burning fuels?    Because of natural

 4   gas, carbon emissions have actually went down

 5   in the state, but now it seems like this

 6   administration is trying to push away from

 7   natural gas altogether, and it just seems

 8   like the wrong approach to me.

 9           COMMISSIONER SEGGOS:   No question that

10   carbon emissions have gone down.    Our mass

11   transit infrastructure has been more

12   effective.   The recent Greenhouse Gas

13   Initiative has produced incredible results on

14   lowering emissions.

15           We need to think a lot bigger than

16   that.   Obviously, that's what we've done with

17   the climate law from last year, which looks

18   at challenging us to go even farther on the

19   issue of renewable power but also looks

20   economy-wide.   Again, we talked earlier about

21   transportation being the largest source of

22   emissions in the state.    That's something we

23   clearly have to focus on.

24           We also have to look at our lands,
                                                        194

 1   look at our farmlands to make sure that

 2   they're part of the solution as well and

 3   benefiting from wherever we end up.

 4          So that's -- to me, I feel like we are

 5   more than on the right track and we've got

 6   the Governor behind us with an incredible

 7   commitment of money.   Thank you.

 8          ASSEMBLYMAN PALMESANO:    Thank you,

 9   Commissioner.

10          CHAIRWOMAN KRUEGER:    Thank you.   I

11   believe that ends your required appearance

12   before us.   Only three hours, that's not so

13   bad.

14          COMMISSIONER SEGGOS:   Not too bad.

15          CHAIRWOMAN KRUEGER:    Right?

16          COMMISSIONER SEGGOS:   Yeah.    Thank you

17   very much.

18          CHAIRWOMAN KRUEGER:    Right.   Three

19   hours plus two demonstrations.    Thank you

20   very much all for your attendance.     And as

21   you get up and move along, we're going to

22   invite Erik Kulleseid, who is the

23   commissioner of the New York State Office of

24   Parks, Recreation and Historic Preservation,
                                                        195

 1   to replace you.

 2           And for those on the panel, it might

 3   be a good time to stretch your legs for a few

 4   minutes.

 5           (Brief recess taken.)

 6           CHAIRWOMAN KRUEGER:     All right,

 7   everybody, if you would take your seats.       I

 8   know it's hard to imagine anything more

 9   exciting than Basil Seggos for three hours,

10   but I am convinced that Erik Kulleseid can be

11   just as exciting in less than three hours.

12           (Laughter.)

13           COMMISSIONER KULLESEID:    That would be

14   good.

15           CHAIRWOMAN KRUEGER:     So please.

16           Hello, welcome.

17           COMMISSIONER KULLESEID:    Good

18   morning -- good afternoon.

19           CHAIRWOMAN KRUEGER:     No, it's not

20   morning, it's afternoon.   And those of you

21   who have the schedule, you see that we have a

22   very full agenda through the night, so get

23   comfortable.    Get popcorn.

24           Okay.
                                                     196

 1          COMMISSIONER KULLESEID:   Thank you.

 2          Good afternoon, Chairwoman Krueger,

 3   Chairwoman Weinstein, Senator Serrano,

 4   Assemblyman O'Donnell, and distinguished

 5   members of the State Legislature.   Thank you

 6   for inviting me to discuss Governor Cuomo's

 7   Executive Budget proposal.

 8          I'm honored to be here today

 9   representing Governor Cuomo on behalf of the

10   Office of Parks, Recreation and Historic

11   Preservation.   And mind you, it's no small

12   perk to be here during the daylight hours

13   this year, in contrast to past years when

14   doing lonely evening testimony in front of

15   you all.

16          I believe I have the best job in state

17   government, overseeing New York's 250 state

18   parks, historic sites, golf courses, boat

19   launches and recreational trails, visited by

20   more than 74 million people each year.   In a

21   time of too much division, parks and public

22   lands are our common ground.   They are the

23   lands, refuges, open spaces that belong to us

24   all.
                                                     197

 1         The Executive Budget provides for

 2   excellent stewardship for the lands entrusted

 3   to our care.   It provides stable funding to

 4   maintain core agency functions, including

 5   22 new park-level staff for maintenance and

 6   safety, continues the Environmental

 7   Protection Fund at its historic high,

 8   proposes a $3 billion bond act for

 9   environmental projects, and provides

10   $110 million for our capital budget.

11         The capital allocation will continue

12   the Governor's NY Parks 2020 initiative to

13   reverse decades of decline and neglect in our

14   parks, and to transform and modernize them

15   for the 21st century.   While there is still

16   much more to do, we've made amazing progress.

17   Since the Governor launched this historic

18   investment with your support, we have

19   initiated more than 900 improvement projects

20   across the state, completed more than

21   $1 billion in work with public and private

22   funds, and built visitorship by 35 percent.

23         Highlights from the last year include

24   completing the $100 million transformation of
                                                      198

 1   Roberto Clemente State Park in the South

 2   Bronx; opening the largest state park in

 3   New York City, in Brooklyn, named after civil

 4   rights pioneer Shirley Chisholm; opening

 5   Camp Junior in Harriman State Park; and then

 6   others like revitalizing the marina at

 7   Sampson State Park, opening a new visitor

 8   center at Walkway Over the Hudson, and

 9   revitalizing the amphitheater at the

10   Saratoga Performing Arts Center.

11         This year, New York will also launch

12   Restore Mother Nature, the nation's most

13   aggressive program for habitat restoration,

14   open space protection and flood reduction,

15   funded in part by a $3 billion environmental

16   bond act.    This initiative is crucial to our

17   state park system, which encompasses more

18   than 300 miles of shoreline along the

19   Great Lakes, Atlantic Ocean and tidal

20   estuaries.   Significantly, the bond act would

21   fund two new state parks:   A 508-acre former

22   quarry in Kingston offering dramatic Hudson

23   River views and an extraordinary restoration

24   opportunity; and a Hudson Eagles State
                                                     199

 1   Recreation Area that would upgrade five state

 2   boat launches to create better water access

 3   between Albany and Hudson.   If you've ever

 4   spotted eagles out the river side of a

 5   New York City to Albany train, you've seen

 6   this area.

 7         The Governor's response to climate

 8   change also includes a proposed Solar Energy

 9   Corps to train young New Yorkers to build

10   solar energy arrays and install solar energy

11   equipment at State Park and DEC facilities.

12   This will not only save operating dollars,

13   but it will provide green training to young

14   students from underserved communities and

15   support our goal of making our parks

16   50 percent electric-energy-neutral by 2025.

17         By fully funding the EPF, the

18   Executive Budget will enhance our stewardship

19   and protection of the state's natural and

20   cultural resources and connect parks and

21   people with more education and access.   This

22   year's budget increases EPF funding for the

23   very successful "Connect Kids" program, an

24   initiative to bring more youth to our parks
                                                      200

 1   and create the next generation of

 2   environmental stewards.   Since 2016,

 3   approximately 300,000 students have visited

 4   state parks, historic sites and DEC

 5   facilities thanks to the program, with a

 6   30 percent increase in 2019.

 7         The budget also includes EPF funding

 8   to continue the successful Friends Groups

 9   Capacity Grants program, providing grants to

10   friends groups that support state parks,

11   historic sites and DEC lands.   A survey by

12   Parks & Trails New York found that our

13   76 friends groups in one year raised more

14   than $17 million for the state park system

15   through individual and corporate

16   contributions, grants, programs and more;

17   attracted an estimated $3.2 million in

18   volunteer labor; and hosted, on average,

19   35 programs annually which brought in nearly

20   700,000 visitors.

21         We are nearing completion of the

22   Empire State Trail, a 750-mile biking and

23   walking trail spanning New York State.   State

24   Parks, the Hudson River Valley Greenway, and
                                                      201

 1   many state and local government partners are

 2   undertaking 60 construction projects to

 3   complete the trail by this coming December,

 4   2020.

 5           Our Division for Historic Preservation

 6   leads the nation in the number and diversity

 7   of historic preservation listings.   In 2019,

 8   we added nearly 4800 properties across

 9   28 counties to the National Register of

10   Historic Places, qualifying them for the

11   New York State Rehabilitation Tax Credit

12   Program and state and federal grant programs.

13           New York State leads the nation in

14   encouraging private investment in

15   revitalization of historic buildings.    In

16   total, since 2011 the program has

17   incentivized more than $6.5 billion in

18   historic resource redevelopment, upstate and

19   downstate alike.

20           State Parks is looking forward to a

21   momentous year in 2020.   We will complete the

22   second phases of Shirley Chisholm State Park

23   and Camp Junior; we will open new visitor

24   centers at Minnewaska State Park Preserve and
                                                     202

 1   the Purple Heart Hall of Honor; we will cut

 2   the ribbon on the Jones Beach Energy and

 3   Nature Center; and we will open the

 4   reconfigured main entrance to Niagara Falls

 5   State Park connecting it much better to the

 6   center city of Niagara Falls.

 7         I do encourage you to come out and

 8   visit our parks in the coming year and to see

 9   in person the amazing public service we

10   provide.   On summer weekends many of our

11   parks fill to capacity with family picnics,

12   high spirits on the playgrounds, splashing in

13   the waves, and laughter beside the campfire.

14         Thank you for your support for

15   New York's magnificent natural and historic

16   places and the millions of people who benefit

17   from them.   I look forward to working with

18   you in the coming year to make the park

19   system the best it can be.

20         Thank you.

21         CHAIRWOMAN KRUEGER:    Thank you.

22         And I neglected to say this was your

23   first time testifying before us as the

24   commissioner, and so welcome.
                                                      203

 1         COMMISSIONER KULLESEID:    Thank you.

 2         CHAIRWOMAN KRUEGER:    And I didn't even

 3   point out that you read your testimony --

 4   which I told everyone not to do -- because it

 5   was clear you were going to make it in the

 6   10 minutes.   So if you actually write short

 7   testimony, you can pull that off.

 8         Our first questioner will be Senator

 9   Serrano, who's the chair of the Committee on

10   Tourism, Parks, et cetera, et cetera.    He

11   will get 10 minutes.   Assemblymember Danny

12   O'Donnell will also get 10 minutes.   Then

13   everyone else after that will get five

14   minutes.

15         Senator Serrano.

16         SENATOR SERRANO:    Thank you very much,

17   Chairwoman.

18         And Commissioner, it's great to be

19   with you and all of our colleagues here

20   talking about an issue that I'm very excited

21   about, as you are, and all of us who care

22   about parks and open spaces and the wonderful

23   things that it brings to our community

24   throughout New York State.
                                                        204

 1            I was listening to your testimony and

 2   I'm excited to learn of -- you know, I've

 3   heard in the Governor's budget presentation

 4   about the bond act and a large acquisition of

 5   additional land for the purpose of expanding

 6   parks.    And I just want a little bit of

 7   clarity on this issue.    Public access being

 8   so important, overcrowding being such an

 9   issue, sort of a good problem to have that

10   there is such excitement and continued

11   increase in park usership year over year.

12            Do you see this bond act and this

13   acquisition as creating more public access?

14   And how will that work out between DEC lands

15   and parklands to address public access?

16            COMMISSIONER KULLESEID:   First of all,

17   the Kingston acquisition is in the city of

18   Kingston, 500 acres with a mile of Hudson

19   River waterfront.    Obviously that's a rarity;

20   it's actually a mile of riverfront without

21   the train tracks, so it provides a rare

22   opportunity to increase public access.      That

23   is indeed one of our objectives, as with a

24   35 percent increase in visitorship we need to
                                                         205

 1   keep figuring out how to receive more people

 2   with the visitors that are coming.

 3            And I think, you know, as an agency we

 4   are very well positioned to deal with large

 5   numbers.    A lot of our parks are destinations

 6   with facilities that draw large numbers.        I

 7   think we've done a good job of, if we need

 8   to, hardening trails at Bear Mountain.      If

 9   you've been up the new trail at the front of

10   Bear Mountain, it's magnificent and it was

11   really hardened in response to high, high

12   visitation.    So I see us as really receiving

13   a lot of that population and figuring out how

14   to do it.

15            SENATOR SERRANO:   That's good.   Thank

16   you.

17            A couple of other items I wanted to

18   mention.    The proposed Park Police merger

19   with State Police, how do you envision that

20   sort of working out?   And, you know, how will

21   that continue to address public safety in the

22   parks?

23            COMMISSIONER KULLESEID:   So I think

24   your last point is where we are.     This is
                                                      206

 1   really about public safety.   You know, as we

 2   welcome 74 million people to our parks, we

 3   have more events, our events are getting

 4   larger, we have concert venues, policing in

 5   the 21st century has obviously become much

 6   more complicated.   So merging our force into

 7   the State Police force really makes a lot of

 8   sense for providing public safety in this day

 9   and age.

10           We already have a strong relationship

11   with State Police, we partner with them an

12   awful lot.   They help us at some of our big

13   events.    So I'm optimistic that we will come

14   up with a great solution that takes care of

15   our force and that also takes care of public

16   safety.

17           SENATOR SERRANO:   Thank you.

18           And one final item, Commissioner.

19   You've heard me speak often about the

20   transformative effect that parks had on my

21   life.   And as a youngster growing up in

22   New York City, in the South Bronx, being

23   fortunate enough to be able to go to summer

24   camp in the summer gave me a level of
                                                       207

 1   exposure and things that I carry with me to

 2   this day.    You know, really good things were

 3   set in motion from that experience.

 4            I know that not all kids get that

 5   opportunity, and my fear is that over the

 6   years we see less and less of these

 7   group-style summer camps, that the

 8   opportunities -- which is a very finite

 9   window of opportunity with children at a

10   certain age -- to give them that level of

11   exposure to all the wonders of nature and the

12   great outdoors, I fear that we're not able to

13   do that because of the loss of summer camps

14   as I knew them back in the late '70s, early

15   '80s.

16            And I know that there's a lot of

17   different reasons why that has happened.     I

18   think Camp Junior at Harriman State Park is a

19   shining example of sort of reversing that

20   trend.    And I know you were very instrumental

21   in making that happen, doing exactly what I

22   think these summer camps -- they are the

23   remedy for a lot of what is problematic about

24   summer in the city at times.
                                                      208

 1           Connect Kids to Parks I know is a very

 2   successful program.   Can you speak to

 3   additional ways or, using that as a vehicle,

 4   to get more youth from the inner city or from

 5   any part of New York State to have that

 6   immersion that they need?

 7           COMMISSIONER KULLESEID:   So I would

 8   say on the one hand -- so as you know, in the

 9   Governor's proposed budget we propose to

10   double Connect Kids, to really enable us to

11   reach more people, to continue to get those

12   funds out and get more kids into the parks.

13           I think yes, Camp Junior is exactly

14   that.   We are going to double the capacity of

15   that camp this year, so it's going -- we're

16   going to be much great capacity for kids from

17   the Bronx to get up to that area.   We're also

18   working with foundations in the Buffalo area

19   to buy sports equipment to be able to have

20   programs in the ring parks around Buffalo.

21           So we are constantly looking at this,

22   and we'd love to partner with you and keep

23   really looking forward to figure out how can

24   we create partnerships in other ways to
                                                       209

 1   receive more and more kids into the parks.

 2   And a lot of that obviously is continuing our

 3   capital investment, particularly in those

 4   parks around New York City, which are

 5   destinations.    Right?   The places where you

 6   went as a kid, to make sure that they are as

 7   good as they can be for receiving urban

 8   dwellers.

 9         SENATOR SERRANO:     I can imagine a lot

10   of the infrastructure is aging.    The camps in

11   and around places like Harriman State Park

12   are probably very, very old, built a very

13   long time ago.   And, you know, all of

14   these -- Camp Junior, obviously, being a good

15   example of being able to renovate and do all

16   the things needed to bring these places up to

17   code so that they're effective.

18         But again, I appreciate what you say.

19   I think that, you know, any opportunity that

20   we can get to get more and more kids

21   involved, to get them involved in a real way

22   in our parks, is wonderful.    And again, I

23   appreciate all that you're doing, and I thank

24   you for your testimony today, commissioner.
                                                         210

 1            COMMISSIONER KULLESEID:    Thank you.

 2            CHAIRWOMAN KRUEGER:     Thank you.

 3            Assembly.

 4            CHAIRWOMAN WEINSTEIN:     Assemblyman

 5   O'Donnell.

 6            ASSEMBLYMAN O'DONNELL:    Good

 7   afternoon, Commissioner.   Nice to see you

 8   again.

 9            This "Restore Mother Nature" Bond Act,

10   which is creating two new state parks, how

11   were those locations chosen?

12            COMMISSIONER KULLESEID:    In the case

13   of the Kingston site, an opportunity

14   presented to acquire a 500-acre quarry.       And

15   in this case it really was something where,

16   you know, it was an opportunity -- one of

17   those opportunities that comes along very

18   rarely.

19            In the case of Hudson Eagles, it's

20   actually been a concept that's been punted

21   around, kicked around for actually a decade,

22   probably, now.   But we have an opportunity

23   through this to create access -- to enhance

24   access, water-based access, to what is a
                                                       211

 1   pretty special stretch of the river, as you

 2   know yourself, I think.    I think I don't need

 3   to tell you the --

 4         ASSEMBLYMAN O'DONNELL:     I'm a little

 5   downriver from there, but yes, I do

 6   appreciate the river.

 7         Did you consult with the local

 8   electeds about making these decisions?

 9         COMMISSIONER KULLESEID:     In both of

10   those cases, yes.

11         ASSEMBLYMAN O'DONNELL:     Okay.   And

12   this Executive likes to have different

13   regions compete against each other -- Buffalo

14   against Long Island.    So was there any

15   thought given to whether or not this is an

16   appropriate balanced use to the money, that

17   they're going right there?    I mean, everybody

18   up here will tell you that wherever they

19   represent or wherever they live is

20   underserved in a certain kind of way.      I'm

21   not against this, I'm just wondering whether

22   or not that was in your thought process.

23         COMMISSIONER KULLESEID:     I think you

24   look at these as exemplars, right, that these
                                                       212

 1   are examples of where this bond act money can

 2   go.   They happen to be projects that were

 3   teed up and ready to go.

 4          But I imagine that as we go over the

 5   course of this -- of the development of the

 6   bond act that many other deserving projects

 7   will be identified statewide, and I think

 8   there obviously is every intent of having

 9   that money spent statewide.

10          ASSEMBLYMAN O'DONNELL:    And what is

11   your expectation for what it will take to --

12   the cost, excuse me, of this?

13          COMMISSIONER KULLESEID:    We have --

14   it's too early to speculate.     We've got

15   appraisals pending on the property, and then

16   it will be -- you know, really depending on

17   the bond act, will be determined whether

18   there's funding to actually build it out.

19          ASSEMBLYMAN O'DONNELL:    So the

20   possibility exists that there's not enough

21   money in the bond act to build it out?

22          COMMISSIONER KULLESEID:    No, that's

23   not true --

24          ASSEMBLYMAN O'DONNELL:    No, that's not
                                                        213

 1   the possibility?

 2         COMMISSIONER KULLESEID:     No.   There's

 3   plenty of money in the bond act to build it

 4   out, yes.

 5         ASSEMBLYMAN O'DONNELL:    Right.   But --

 6         COMMISSIONER KULLESEID:     We will

 7   tailor to it -- you know, we --

 8         ASSEMBLYMAN O'DONNELL:    Yeah, but when

 9   we read words like "dedicated," that kind of

10   means like nothing, right?   I mean, so what

11   exactly -- what is the commitment that the

12   money is going to be used for this individual

13   purpose?

14         COMMISSIONER KULLESEID:     An exact

15   amount has not been committed to either the

16   Kingston project or the boat launch project.

17   We have -- there are some ranges in it.      You

18   know, it really depends on, you know, what

19   level of amenities you build into these

20   places, do you keep it a passive park.

21   There's a lot of decisions that haven't been

22   made yet.

23         ASSEMBLYMAN O'DONNELL:    Unlike Senator

24   Serrano, I never went to summer camp, but I
                                                       214

 1   did learn to swim at Robert Moses State Park,

 2   which I'm eternally grateful for, although I

 3   think they should change the name.

 4         But I'm curious about the namings of

 5   these parks.   So how is that going to happen,

 6   and who is going to be involved?

 7         COMMISSIONER KULLESEID:     The naming --

 8   you mean for the Hudson Eagles and for the

 9   park in Kingston?

10         ASSEMBLYMAN O'DONNELL:    The new -- the

11   new Kingston one, yes.

12         COMMISSIONER KULLESEID:     Yeah, yeah,

13   yeah, yeah, yeah.   You know, we've opened a

14   number of parks in the last few years, right?

15   We have Buffalo Harbor State Park, which kind

16   of suggests where it is.   We've opened

17   Shirley Chisholm -- obviously was named after

18   a leading figure from Brooklyn and from

19   really national -- of national stature.

20         You know, names have not been chosen.

21   It could be named after natural features, it

22   could be named after people, but none of that

23   has really been determined yet.

24         ASSEMBLYMAN O'DONNELL:    Well, I would
                                                      215

 1   really hope that the naming would be

 2   connected to where it is and the locality of

 3   there, not, you know, a rich donor who sends

 4   some checks.   Do you understand?

 5         COMMISSIONER KULLESEID:     Yup.

 6   Exactly.

 7         ASSEMBLYMAN O'DONNELL:     The solar

 8   electricity by 2030 was supposed to be

 9   receiving 50 percent under you.     What is

10   happening with that?

11         COMMISSIONER KULLESEID:     So we have

12   already taken a number of parks off the grid

13   on Long Island, and we are now pending --

14   looking at a whole -- taking our entire

15   Taconic region off the grid sometime in the

16   next year.   We actually have contracts to

17   move ahead with that.    And we will continue

18   to aggressively pursue that.

19         And we find that these Solar

20   Conservation Corps is a neat way to do it.

21   It's great training.    We put it in our parks

22   and it's actually been -- they've been

23   fantastic, you know, learning projects and

24   have really done a great job of putting us in
                                                        216

 1   the forefront of this, getting off the grid.

 2           ASSEMBLYMAN O'DONNELL:    And is it your

 3   intention going forward when you build new

 4   parks that they be off the grid as well?

 5           COMMISSIONER KULLESEID:     The agency

 6   would -- we would like to be off the grid,

 7   yes.

 8           ASSEMBLYMAN O'DONNELL:    Okay.   I just

 9   want to thank you.   I think parks are very

10   important, and your work is terrific.      I

11   would like to encourage you and the second

12   floor to invite the local elected officials

13   and the chairs of the relevant committees to

14   events that occur in them.      And certainly --

15   I'm not certain who represents Kingston, but

16   if he or she were not -- the Assemblymember

17   were not to be consulted or not to be invited

18   to participate in the ribbon-cutting, that

19   would make me very angry.

20           COMMISSIONER KULLESEID:    We will make

21   sure that happens.

22           ASSEMBLYMAN O'DONNELL:    Thank you very

23   much.

24           CHAIRWOMAN WEINSTEIN:     Thank you.
                                                       217

 1            Senator Seward.

 2            SENATOR SEWARD:   Thank you.

 3            And Commissioner, it's good to see you

 4   again.

 5            COMMISSIONER KULLESEID:   Good to see

 6   you.   Thank you.

 7            SENATOR SEWARD:   As I read the

 8   Executive's budget proposal, it calls for the

 9   hiring of 22 traders, generalists and scalers

10   for the park system.   What would the duties

11   of these workers be under those titles, and

12   what is the need for these 22 new slots?

13            COMMISSIONER KULLESEID:   Well,

14   obviously you're familiar with our parks.

15   Our parks, especially in Western New York,

16   are characterized by these dramatic,

17   beautiful gorges, some of the most beautiful

18   gorges -- Robert Treman and Letchworth,

19   Niagara Gorge.    And all those gorges are made

20   of rock that gets loose in the freeze-thaw of

21   winter, and so every year we send crews out

22   to just dislodge the loose rock and make the

23   place -- make sure the places are safe for

24   the public.    And that happens every year.
                                                       218

 1         So it's scalers, really allowing us to

 2   do that effectively statewide, because that's

 3   what a scaler does.    And then, you know, we

 4   have a -- it's a large system, it's got a lot

 5   of use, and we are -- now we've been

 6   investing in it, it really makes sense to

 7   build our trades capacity to maintain the

 8   investment that the state has made in these

 9   parks over the last eight years.

10         SENATOR SEWARD:     Well, that second

11   point is a good problem to have.    You're

12   popular.

13         COMMISSIONER KULLESEID:     Yes.

14         SENATOR SEWARD:    Which is great.

15         There is a proposed -- another round

16   of NY Works infrastructure program, I think

17   it's $112.5 million.

18         COMMISSIONER KULLESEID:     Correct.

19         SENATOR SEWARD:    What projects will

20   these funds be going towards?

21         COMMISSIONER KULLESEID:     Those are the

22   lists we're developing now, you know, we will

23   be developing through the budget process, and

24   by the spring season we'll be able to sort of
                                                       219

 1   release those.    But right now that project is

 2   in development.

 3         SENATOR SEWARD:    I noted -- and we've

 4   had a discussion about the funds from the

 5   proposed bond act, the Restore Mother Earth

 6   Bond Act, going toward two new state parks.

 7   And I would just take this opportunity to

 8   point out right in my home area we have the

 9   Robert Riddell State Park, which is close to

10   2,000 acres that were donated by this family

11   to the state for a new state park -- this was

12   a number of years ago.   And it's located

13   right at the Cooperstown exit of I-88.    So

14   particularly in the summer months it's a very

15   highly visible and traveled area.

16         And I have -- even though there have

17   been some minimal investments at the Riddell

18   State Park, I would just urge you to take a

19   look at how we could as a state do more there

20   at that particular park.   It could -- it's --

21   it could be -- it's exposed to so many

22   visitors and New Yorkers that visit

23   Cooperstown and that area.    We expect a big

24   crowd this year with Derek Jeter going into
                                                       220

 1   the Hall of Fame.

 2         And I just think we just have not, as

 3   a state, given enough attention to this park

 4   to help it reach its full potential on behalf

 5   of the people of the state.    But now we're

 6   going out and purchasing additional land for

 7   two new state parks when my point is perhaps

 8   we have not invested in what we already have

 9   in terms of parks.

10         So I'd be very, very happy to work

11   with you.   It's in the central region, this

12   particular park.    I'd be very happy to work

13   with you on ways that we could better utilize

14   those close to 2,000 acres on behalf of the

15   people of the State of New York and those

16   that visit our state.

17         COMMISSIONER KULLESEID:     Thank you for

18   that comment.   And we'd be more than happy to

19   sit down and talk to you.   As you know, we

20   think -- we want to do some improvements

21   there, certainly to make it a little bit

22   better for the public to get in there.

23         SENATOR SEWARD:     Okay, thank you.

24         CHAIRWOMAN WEINSTEIN:     Assemblyman
                                                       221

 1   Englebright.

 2         ASSEMBLYMAN ENGLEBRIGHT:     Thank you.

 3   Thank you, Madam Chair.

 4         Commissioner, first, I just want to

 5   say congratulations, I know that you have

 6   dedicated your life to the parks.   And it's

 7   gratifying that the Governor had the wisdom

 8   to take that lifetime of commitment and to

 9   recognize it and to appoint you.

10         COMMISSIONER KULLESEID:    Thank you.

11         ASSEMBLYMAN ENGLEBRIGHT:     I just have

12   two questions today.

13         You mentioned the Empire State Trail.

14   The portion that has not been really

15   scheduled for completion within the time

16   frame that you mentioned is the Long Island

17   section.   Are you, first, aware of that?   And

18   are you willing to roll up your sleeves and

19   find a way to include coastal New York and

20   the coastal plain province within the Empire

21   State Trail?

22         COMMISSIONER KULLESEID:    I am aware of

23   the Long Island initiative, and I believe we

24   gave the Trust for Public Land a grant this
                                                       222

 1   past cycle to help them really finish out the

 2   plan, the conceptual planning for an

 3   extension of the Empire State Trail into

 4   Long Island.   So I think we were -- we're

 5   supporting sort of advancing work on that.

 6          ASSEMBLYMAN ENGLEBRIGHT:   So you're

 7   already doing some of the advanced work?

 8          COMMISSIONER KULLESEID:    I believe

 9   that we gave them a grant in December.     I'll

10   get back to you, but I believe that we gave

11   them a grant in December.

12          ASSEMBLYMAN ENGLEBRIGHT:   Okay, thank

13   you.

14          And my second question, there are two

15   great state park systems in the state that

16   the state is intimately involved with.    One

17   is obviously directly in your control.    The

18   second is the zoos, botanical gardens and

19   aquariums galaxy of parks.

20          They're not officially state parks;

21   they are, however, all not-for-profit

22   organizations and they work in many ways in

23   parallel to what State Parks does.     And the

24   ZBGA program, funded through the EPF, largely
                                                       223

 1   comes through your agency.

 2           I've always wondered if it's possible

 3   for those two parallel in the universe park

 4   systems to coordinate more closely in terms

 5   of marketing, in terms of the common history.

 6   I know that you're already sort of moving in

 7   that direction in some places, such as

 8   Sonnenberg Gardens, which is now a state

 9   park.   But I'm just wondering if you're open

10   to exploring ways to have an even stronger

11   alliance with the zoos, botanical gardens and

12   aquariums of the state.

13           COMMISSIONER KULLESEID:   Very much so.

14   And I think that obviously they are -- the

15   support for them in the EPF is a great --

16   shows great state confidence in those

17   institutions and their importance to

18   environmental programming and education in

19   the state.   And we actually host a couple of

20   them.

21           But I think very much we are -- we

22   would love to have those close conversations

23   and improve those relationships.   Always

24   looking for those.   We need our partners to
                                                      224

 1   do things, and our partners are great assets

 2   for us.

 3         ASSEMBLYMAN ENGLEBRIGHT:    My Speaker

 4   represents where the two largest institutions

 5   in the state are, in the Bronx.

 6         COMMISSIONER KULLESEID:     They're big.

 7         ASSEMBLYMAN ENGLEBRIGHT:    They occupy

 8   the heart of the Bronx.   So I'm -- I share

 9   with him a concern about those two

10   organizations.

11         Thank you for your answers.

12         CHAIRWOMAN WEINSTEIN:    Thank you.

13         Senator Metzger.

14         SENATOR METZGER:    Thank you, Madam

15   Chairwoman.

16         Can you hear me?

17         COMMISSIONER KULLESEID:     I can hear

18   you, but I'm not sure anyone else can.

19         SENATOR METZGER:    I have the worst

20   time with these things.

21         First, I just want to thank you and

22   really thank the State Parks Commission,

23   because my district benefits hugely from the

24   state parks we have.   We feel very rich in
                                                         225

 1   that department.   It's great for our economy,

 2   great for our quality of life, and great for

 3   the environment.

 4           I wanted to just ask you -- we started

 5   a conversation last year about electric

 6   vehicle charging infrastructure at parks.       I

 7   love to see that you have this renewable

 8   program, I think it's great.      It would be

 9   great to integrate that with charging

10   infrastructure.    It will bring more visitors

11   to the parks.   It's kind of a perfect

12   marriage, because people are looking for

13   things to do while they're charging their

14   electric vehicles.   And we need this

15   infrastructure across the state, and you have

16   parks across the state.   So I wanted to see

17   if there's been any more thought given to

18   that.

19           COMMISSIONER KULLESEID:    You know, we

20   are doing that -- we just did the parking

21   lots at Niagara Falls, I believe, where we

22   had electric charging stations.

23           Clearly, as this program gets rolled

24   out and we're building these EV stations all
                                                            226

 1   across the state, our parks are where they

 2   should be.    I'm hoping we have them at

 3   Minnewaska coming up.    But they're huge

 4   opportunities, yes.

 5            SENATOR METZGER:   Okay.    All right.

 6   Thank you very much.

 7            CHAIRWOMAN WEINSTEIN:      Thank you.

 8            Assemblywoman Glick.

 9            ASSEMBLYWOMAN GLICK:    Nice to see you

10   here.    Thank you.

11            I know that there has been this

12   attempt to add some additional resources to

13   State Parks and do more capital

14   infrastructure.    The -- there is a lake in

15   Harriman Park that was very highly used and

16   it's -- since Sandy, it's been unusable.          So

17   I'm just wondering where that is.       I mean,

18   it's a -- for people who live in the City of

19   New York, it's a great retreat, but it has

20   been closed, primarily, for the last several

21   years.

22            So (A) what is the timeline on that?

23   I realize you have a lot of parks all over.

24   But this was one of those, and one would
                                                        227

 1   think that maybe some of the federal dollars

 2   could have been used to rebuild that.

 3            COMMISSIONER KULLESEID:   I think

 4   you're talking about Lake Sebago.

 5            ASSEMBLYWOMAN GLICK:   Yeah, yeah.

 6            COMMISSIONER KULLESEID:   Yeah.   So

 7   Sebago has been closed since Irene and Lee; I

 8   think there were some drainage problems

 9   there.    It will take quite a significant

10   amount of capital.    We are actually looking

11   at that as a potential place to expand

12   capacity -- to restore capacity in the Lower

13   Hudson Valley.    But we also have an enormous

14   pool at FDR, in Yorktown, that is also very

15   heavily used by people from New York City.

16   We have to restore it, we have to redo it.

17            But it actually is very much one of

18   the places I'm very interested in looking at

19   closely to rebuild the capacity in the

20   State Parks system.

21            ASSEMBLYWOMAN GLICK:   Well, it used to

22   be -- it wasn't just people who could drive,

23   it was like groups that would take

24   schoolkids.    And, you know, so it was to get
                                                        228

 1   them out of the city entirely, to actually

 2   see a different type of expansive nature.    So

 3   it was sort of a key area.

 4            And the only other thing I would ask

 5   is I know DEC has what look like -- I guess

 6   it's DEC management areas; they look like

 7   parks.    And I'm just wondering what the

 8   connection is to -- there are places like

 9   Bear Spring, in Delaware County.    It's a

10   camping site.    I used to camp in state parks

11   in the Adirondacks, so this looked the same.

12            And I'm just wondering, how is it

13   decided that some are DEC and some are Parks,

14   and what synergy is there between the two?

15            COMMISSIONER KULLESEID:   So for

16   camping in particular, obviously, we put out

17   a joint camping guide every year, right?     And

18   when you make reservations, it's through the

19   same program.    So for camping, it is pretty

20   seamless.

21            It is true that outside the Blue Line

22   they tend to be run by State Parks, and

23   inside the Blue Line they tend to be run by

24   DEC.   That's really the only distinction
                                                         229

 1   between them.

 2         ASSEMBLYWOMAN GLICK:    Okay, thank you.

 3         CHAIRWOMAN WEINSTEIN:     I have one I

 4   think final question on behalf of the -- from

 5   the panel.

 6         In your testimony you note that

 7   visitorship in the state parks is up by

 8   35 percent since -- I guess 2013, right?

 9         COMMISSIONER KULLESEID:     2011, yeah.

10         CHAIRWOMAN WEINSTEIN:    So during that

11   same time, if I'm not mistaken, the operating

12   funding for the agency has remained

13   relatively flat.    Have you been able -- does

14   that allow you to deal with this new third

15   increase of visitors?   Should you have -- do

16   you need more?   Is that adequate funding?     Do

17   you need more, and what would you do if there

18   was more support?

19         COMMISSIONER KULLESEID:    We have

20   adequate funding.   One of the things we've

21   been doing with this capital is we are

22   investing in ways to reduce our expenses.      So

23   the solar initiative obviously is great for

24   the planet, but it's also good for us because
                                                        230

 1   it reduces our expenses.   A lot of our new

 2   facilities, we are being -- we are building

 3   them, we're restoring them at much more

 4   sustainable levels, replacing light fixtures

 5   and then restructuring.

 6            But we are -- it's -- you know,

 7   obviously we are -- it's -- we are lean, but

 8   we've really found there are opportunities

 9   within the agency to make improvements to

10   management that we've been able to make it

11   work and really welcome, you know, 20 million

12   more people than we used to with the same

13   staff.    And we are also happy to have the

14   extra 22 employees proposed to be added to

15   our force.

16            CHAIRWOMAN WEINSTEIN:   Thank you

17   for -- thank you for your testimony, being

18   here today.

19            COMMISSIONER KULLESEID:   Thank you.

20   Thank you.

21            CHAIRWOMAN WEINSTEIN:   Next we will be

22   hearing from Richard Ball, commissioner,

23   New York State Department of Agriculture and

24   Markets.
                                                      231

 1         We were joined a short while ago by

 2   Assemblywoman Lupardo, chair of the

 3   Assembly's Agriculture Committee.

 4         CHAIRWOMAN KRUEGER:     Is Commissioner

 5   Ball here?   Ah, there he is up there.     Our

 6   eyes aren't that good.   Walk carefully.

 7         (Pause.)

 8         CHAIRWOMAN KRUEGER:     Good afternoon.

 9         COMMISSIONER BALL:    Good afternoon.

10         CHAIRWOMAN KRUEGER:     Hello,

11   Commissioner Ball.   Welcome today.

12         COMMISSIONER BALL:    Good to be here.

13         CHAIRWOMAN KRUEGER:     We tell everyone

14   you have 10 minutes.    If you can avoid

15   actually reading the testimony and just

16   giving us your highlights -- but you have

17   very short testimony, so I'd bet money you

18   could get through it in the 10 minutes

19   anyway.

20         COMMISSIONER BALL:    I'll get it done

21   in five, how does that sound?

22         (Laughter.)

23         CHAIRWOMAN KRUEGER:     Gives us more

24   time to question you.
                                                      232

 1         COMMISSIONER BALL:     Are you prepared?

 2         CHAIRWOMAN KRUEGER:     Mm-hmm.

 3         COMMISSIONER BALL:     Okay.

 4         Good afternoon, Chairwoman Krueger,

 5   Chairwoman Weinstein, Senator Metzger,

 6   Assemblywoman Lupardo, members of the

 7   Agricultural Committees, and elected

 8   officials.    I am honored to present my

 9   testimony on the fiscal year '21 Executive

10   Budget for the Department of Agriculture and

11   Markets.

12         Despite continued uncertainties at the

13   federal level and in the marketplace, the

14   state's agricultural community is making

15   progress, thanks to the Governor's dedication

16   to the industry and to our partnerships with

17   all of you.

18         The Executive Budget recommends

19   $190 million for the department, an increase

20   from last year, showing strong commitment to

21   the agricultural industry.    These funds will

22   allow us to execute our essential functions

23   while implementing innovative programs that

24   promote agriculture in New York.
                                                      233

 1         Importantly, this year's Executive

 2   Budget addresses our industry's concerns and

 3   provides clarity on the Farm Laborers Fair

 4   Labor Practices Act by expanding the

 5   definition of "extended family."

 6         It also confronts climate change,

 7   continuing Environmental Protection Fund

 8   funding at $300 million.   For our department,

 9   that means $55 million to support farmland

10   protection, climate change mitigation, water

11   quality improvement, and invasive species

12   programs.

13         Building on that, the Executive Budget

14   proposes the $3 billion "Restore Mother

15   Nature" Bond Act, which will also expand

16   on-farm best practices and agricultural

17   nutrient management programs.

18         We're pleased that the Executive

19   Budget proposes $27.4 million in local

20   assistance, to ensure the future of New York

21   agriculture.   These dollars will support key

22   programs that provide specialized technical

23   assistance, research, agricultural education,

24   workforce development, and marketing
                                                      234

 1   initiatives for agriculture.

 2           For example, we are continuing to fund

 3   historic investments in the New York FFA

 4   program.   The results have been very

 5   impressive.   New York FFA had the highest

 6   membership increase in the country in 2019.

 7           To expand opportunities for new

 8   farmers, the department will also be

 9   convening a workgroup this year committed to

10   increasing diversity in the farming community

11   of New York State.

12           Through the Taste NY and NYS Grown &

13   Certified programs, Governor Cuomo continues

14   to prioritize the promotion of locally grown

15   and produced foods.   New York State Grown &

16   Certified has done a tremendous job of

17   helping farmers and small businesses answer

18   the demand from consumers for fresh, local

19   food.   In three years, we have seen the

20   program grow to over 3,000 farms on over

21   775,000 acres of farmland.

22           A proposed blue-ribbon task force will

23   build on the New York State Grown & Certified

24   program and look at produce traceability to
                                                     235

 1   provide consumers with more information about

 2   the source of the food that they eat.

 3         The Executive Budget also provides

 4   $1.5 million for our Farm to School program,

 5   bringing more fresh local food to children

 6   and connecting our farmers to new markets.

 7         The department performs crucial

 8   regulatory functions that help safeguard our

 9   plants and animals and ensure the safety of

10   New York's food supply.   The number of

11   establishments requiring our inspection is

12   ever-increasing.   The Executive Budget

13   provides a much-needed boost of support with

14   the addition of staff, including inspectors

15   for the Industrial Hemp Agricultural Research

16   Pilot Program, who will be on the front lines

17   of our food safety, public health and plant

18   health efforts.

19         Finally, the New York State Fair has

20   shattered attendance records for four years

21   straight.   In 2019, the fair welcomed over

22   1.3 million guests.   This year's budget

23   proposes $5 million to extend the fair's run,

24   allowing more visitors than ever to
                                                        236

 1   experience New York agriculture.      In

 2   addition, $15 million will be used to

 3   continue to modernize the grounds and

 4   encourage year-round use.

 5           The proposed fiscal year 2021

 6   Executive Budget moves our agricultural

 7   industry forward.     As the development of a

 8   State Budget is a partnership with you in the

 9   Legislature, we look forward to hearing your

10   priorities and working with you in the year

11   to come.

12           So thank you.   How'd I do?

13           CHAIRWOMAN KRUEGER:    Thank you.   That

14   was less than five.

15           Senator Metzger, the chair of the

16   Agriculture Committee.

17           SENATOR METZGER:   Thank you,

18   Madam Chairwoman.

19           And thank you so much, Commissioner

20   Ball.   And I just want to express my

21   appreciation for all that you do for

22   New York's farms.   You are a real champion of

23   our agricultural sector.

24           The importance of agriculture in
                                                      237

 1   New York cannot be overstated.   It generates

 2   5.7 billion in gross income, it employs

 3   55,000 workers.   And when you consider the

 4   multiplier effects, its economic impact is

 5   upwards of $45 billion.   And beyond the

 6   economics, it is so important to the quality

 7   of life of all New Yorkers.   Agriculture is

 8   critical to our food security, to addressing

 9   climate change and preserving the environment

10   and open spaces, and to preserving thriving

11   rural communities.

12         There are a lot of good things in this

13   budget that you've drawn attention to.     I'm

14   also concerned that there's close to

15   $5 million in proposed cuts from the previous

16   year that I think is going to be very

17   important to restore.

18         I'd like to ask -- focus on a few

19   questions.   I want to start off first with

20   the -- a welcome addition to the budget,

21   which is 40 new full-time positions, which I

22   think is fantastic.   If you could just talk

23   about where this new staff will be deployed,

24   what they'll be working on.
                                                         238

 1            COMMISSIONER BALL:   Sure.   Yeah,

 2   they're various parts of the agency.      Fifteen

 3   will be at the State Fairgrounds, because

 4   we're moving that into a year-round

 5   enterprise more and more, and we've had a lot

 6   of attrition over there in the last five

 7   years.    So some of those people are going

 8   there.

 9            Some of the new FTEs are going to be

10   in our lab, as we need to do more lab

11   testing -- for example, industrial hemp

12   issues.    We've got some in dairy.   As you

13   know, we inspect all the dairy processing

14   plants.    We have over 400 plants in New York

15   State right now.   And we've got some going in

16   plant as well.

17            SENATOR METZGER:   Okay.   Now, you

18   know, we have a wonderful and growing hemp

19   industry, which I just put the legislation in

20   place to really facilitate some really

21   dynamic growth in that area.     And I want to

22   just make sure that we'll have staffing

23   levels that are adequate to support that

24   growth in that.
                                                        239

 1         COMMISSIONER BALL:      You bet.

 2         SENATOR METZGER:     You feel confident

 3   that we do.

 4         COMMISSIONER BALL:      I do.   I do.

 5         SENATOR METZGER:     Okay.    I want to

 6   turn now just to the "Restore Mother Nature"

 7   Bond Act and ask you, you know, in your dream

 8   world for agriculture, what would you like to

 9   see some of that funding go toward for

10   agriculture?   I can think of many needs

11   personally; I would like to hear what you

12   think it should be used for.

13         COMMISSIONER BALL:    Well, we're just

14   getting started on all these.      But I want to

15   make very clear that we're going to look very

16   closely at nutrient management on farms.

17   That's going to be the lion's share of what

18   we hope to get out in agriculture from this

19   bond act.   And I think our soil health

20   initiatives are going to complement very well

21   that theory and those acts.

22         So we're just getting started on this.

23   There's going to be a lot of time for input

24   from you and from us.   But that's where I see
                                                         240

 1   that going.

 2         SENATOR METZGER:     I expressed concern

 3   earlier to Commissioner Seggos about the

 4   proposed cut of a million dollars to the

 5   Farmland Protection Program.     I think that's

 6   a very bad idea.   I feel that, if anything,

 7   that that funding should be increased.      And I

 8   wanted to see if you saw any opportunities in

 9   this bond act to make up for that loss and

10   even perhaps increase that funding.

11         COMMISSIONER BALL:    Sure.   And I

12   appreciate that concern very much.    We've had

13   a great record of continued funding for

14   farmland preservation, and we're now ranked

15   in the top five in the country in that

16   regard.   In fact, last year we hit a

17   milestone with 175,000 acres that have been

18   preserved.

19         But if you look beneath the surface --

20   number one, we do have some reappropriations

21   available to us that we'll utilize.     But I

22   think, more importantly, if you look beneath

23   the surface you'll notice that we did a Dairy

24   Transitions Program last year.    In addition
                                                     241

 1   to the funding for farmland preservation, we

 2   did a specialized $30 million dedication of

 3   dairy transition, targeting dairy farms

 4   looking to transition to the next generation,

 5   looking to transition to a different crop,

 6   looking to transition to more efficient

 7   methods on their farm.    We awarded those

 8   within a year.

 9         On top of that, we redid the Dairy

10   Transitions Program, put out a second round,

11   and we also, looking around at other types of

12   farms, non-dairy farms that were suffering

13   from some of the trade, you know, challenges

14   that the industry broad has faced with

15   Canada, Mexico, China, et cetera.    And we

16   looked at non-dairy farms also transitioning

17   to a different crop, different way of doing

18   business.   And we put $14 million into that

19   program.

20         So yeah, we did cut 1 million, but

21   we've added 34 million.

22         SENATOR METZGER:     Okay.   And then I

23   think I have time for another question.

24         You've been a real champion of Farm to
                                                        242

 1   School, which is just such an enormous

 2   opportunity for our farmers.     I know

 3   Harvest New York has played an important role

 4   there.     It's now been moved out of the

 5   budget.     If you could just talk about what's

 6   happening with the Harvest New York program a

 7   little bit.     It looks like it's out of the ag

 8   budget, correct?    And --

 9            COMMISSIONER BALL:   That's a great

10   program.     As I mentioned earlier, though, I

11   have to say that this budget for agriculture

12   is a process.     The Executive gets to put

13   forward his Executive Budget, and then the

14   Senate and the Assembly come together with

15   their table money and we work out a budget

16   for all of agriculture.

17            I remember as a farmer coming here to

18   Albany in 2012, for example.     The Executive

19   Budget for Agriculture Aid to Localities was

20   $5 million.     Last year we got, in the

21   Department of Agriculture, the biggest budget

22   for agriculture we have ever gotten in the

23   history of New York State.     And this year

24   it's essentially the same.     We're talking
                                                        243

 1   about 27.5 million.    And actually the

 2   Executive portion of the budget amounts to

 3   89 percent of agriculture's funding to

 4   localities.

 5         So we've got some other great programs

 6   out there, and we certainly look forward to

 7   working with all of you.   You are out in your

 8   district, you're in your region, and you hear

 9   what's really important to your farmers.     And

10   we're happy to talk with you and think about

11   the things that need additional funding in

12   this budget.    But we're off to a great start,

13   from my estimation as the Commissioner of

14   Agriculture, by the support we have from this

15   Governor.

16         SENATOR METZGER:     Thank you very much,

17   Commissioner.

18         COMMISSIONER BALL:    You bet.

19         CHAIRWOMAN KRUEGER:      Assembly.

20         CHAIRWOMAN WEINSTEIN:     We've been

21   joined by Assemblywoman Woerner.

22         And we go to our Agriculture Chair

23   Donna Lupardo for questions.

24         ASSEMBLYWOMAN LUPARDO:     Thank you very
                                                       244

 1   much.

 2           Well, greetings.

 3           COMMISSIONER BALL:    Greetings.   Good

 4   to see you.

 5           ASSEMBLYWOMAN LUPARDO:    Good to see

 6   you and everyone who's working with you.

 7           I'm glad you mentioned what a banner

 8   year we had last year, because we worked very

 9   hard to raise the importance of agriculture

10   and raise the profile.     I think we're going

11   to have an even better year this year because

12   of the understanding about how integrated

13   agriculture is really into not only the

14   economic health of upstate, but throughout

15   the whole state.

16           And I want to just point out that last

17   year the Legislature passed -- I think it may

18   have been unanimously -- the creation of an

19   agricultural investment task force.    And I

20   think what we were trying to say there, even

21   though the bill was vetoed, what we were

22   trying to say is that the discussion of

23   agriculture should be integrated in with some

24   of the other departments where we are
                                                        245

 1   typically siloed -- State Ed; Empire State

 2   Development; DOT, even; DEC.     And some of the

 3   topics that I think we would have gotten into

 4   with that really I think is where we are now,

 5   a turning point.

 6            And I was hoping you could maybe

 7   briefly explain to my colleagues who are very

 8   interested in reaching our climate goals, how

 9   agriculture might play a role in developing

10   more specific ecological farming practices.

11   I think people would be very inspired to know

12   what we could deliver if we were more

13   actively engaged in the conversation.

14            COMMISSIONER BALL:   Well, thank you.

15   That's a big subject.    It's a great one,

16   though.

17            I have to say that when I first was

18   asked by the Governor to take this role on,

19   he asked me to be a part of a team.    That was

20   the word he used:    "I want you to join the

21   team."    And I have to say that I've always

22   felt like a team member when I meet with the

23   rest of the cabinet, talk to the other

24   agencies, the other commissioners.
                                                       246

 1            As a matter of fact, the first thing

 2   we undertook at the Department of Agriculture

 3   that very first year was something we called

 4   the silo workgroup.    And I invited in all the

 5   commissioners from every department in state

 6   government that regulated agriculture in any

 7   way.     So it was a lot of people, and it was

 8   great.    But we all sat at the same table and

 9   I think formed a great relationship with our

10   farm community, made some progress at

11   breaking down those silos.

12            So today, as we look at the challenges

13   ahead of us, particularly with regards to

14   climate, I would say our relationship with

15   DEC, our relationship with NYSERDA, our

16   relationship with the Public Service

17   Commission has never been better than it is

18   today.    And so when we look at the climate

19   challenges, we talk to each other and we are

20   actually meeting on a regular basis with each

21   other to look at those opportunities.

22            I'm particularly excited about

23   climate, because every day, you know, for

24   farming, since I was 18 years old, I've seen
                                                      247

 1   the changes and the evolution and the way we

 2   take care of our soils, the way we manage the

 3   issues around climate.   We've had

 4   unfortunately, just in the last few years,

 5   the worst drought in the history of New York

 6   State, one of the worst wet years in the

 7   history of New York State, flooding in

 8   various parts of our state.   And so I think

 9   our opportunity is to make sure that as we go

10   forward with regards to climate resiliency,

11   agriculture is at the table and we advantage

12   our farmers.

13         ASSEMBLYWOMAN LUPARDO:    Let me ask you

14   a couple of quick budget questions and then

15   we might go back and talk about this a little

16   bit further.

17         COMMISSIONER BALL:    Okay.

18         ASSEMBLYWOMAN LUPARDO:    So in the new

19   positions, has anyone ever recently requested

20   an additional position in the animal industry

21   section?   We are faced with a lot of public

22   demand for increased inspections, pet store

23   awareness, breeders.   Is that something that

24   is a need in your agency that should be
                                                       248

 1   addressed potentially in new positions?

 2         COMMISSIONER BALL:    Right now, in

 3   Animal, we're in pretty good shape.   We have

 4   probably the best vet in the country,

 5   Dr. Smith, and he's got a great team of

 6   people there.

 7         The concerns I have there are more

 8   in-house, in the office, managing the

 9   requests of documents.   But we've got an

10   excellent team out in the field,

11   veterinarians.   They're able to keep up with

12   the job as it's currently subscribed to us.

13         But the challenges we've had have been

14   internal and processing licenses and things

15   like that.   So we've dealt with that.

16         ASSEMBLYWOMAN LUPARDO:     Thanks.

17         On the farm labor law, so I see the

18   Governor has put in a change regarding the

19   definition of "family member."    I'm sure

20   you're aware that there are some other

21   definitions that we would also like looked at

22   regarding some of the other categories --

23   salaried worker, managerial, secretarial.    Is

24   that something we might be able to achieve in
                                                          249

 1   the 30-day amendments, or are you optimistic

 2   that's part of the conversation?

 3         COMMISSIONER BALL:     I am.    And I

 4   believe we can get there on that.      Going to

 5   the third level of consanguinity is an

 6   important fix initially.    I think some more

 7   additional discussions need to be held around

 8   the salaried workers, et cetera.      But I'm

 9   quite confident that we can get there.        It's

10   important to us at the department, obviously

11   important to the industry.    I would have to

12   add it's very important to the Governor's

13   office and also to the Commissioner of Labor.

14   We're going to get there.

15         ASSEMBLYWOMAN LUPARDO:     Right.    And of

16   course there are some other issues under

17   discussion as well --

18         COMMISSIONER BALL:     Yeah.

19         ASSEMBLYWOMAN LUPARDO:     -- that we can

20   talk about another time.

21         On the State Fair, the appropriation

22   of additional capital funding.       I've been

23   approached by some groups who aren't

24   typically in the conversation about
                                                        250

 1   improvements.    And I was wondering how will

 2   you solicit feedback or how might someone

 3   who's not necessarily at the table be a

 4   voice?    How might I, how might we better

 5   communicate with you about some of the needs

 6   of -- capital needs at the fair?       I mean,

 7   what's our best route?

 8            COMMISSIONER BALL:   Sure.    That

 9   appropriation is going to be obviously

10   ongoing maintenance.   We've grown the fair,

11   we've grown the building site, we've improved

12   a tremendous number of things.       We've got

13   electrical upgrades, safety upgrades that

14   continue to happen.    And so that's where that

15   funding's going to go.

16            But you have my email address, and you

17   have the record for sending the most number

18   of emails to me in a day.

19            ASSEMBLYWOMAN LUPARDO:   Usually around

20   midnight.

21            COMMISSIONER BALL:   Yes.    And that's

22   okay.    Please do that, avail yourself of

23   that.    So --

24            ASSEMBLYWOMAN LUPARDO:   I will do
                                                         251

 1   that.

 2           The Childhood Nutrition Program, your

 3   notes said that -- an additional 1.5 million

 4   for the Farm to School Program.      Did you mean

 5   new money, or that's the appropriation split

 6   between two agencies?

 7           COMMISSIONER BALL:   It's $1.5 million

 8   for Farm to School.    So half of that comes

 9   from State Ed, half of that comes from us.

10           ASSEMBLYWOMAN LUPARDO:   Obviously a

11   big passion -- for you, for me.      It's

12   something we would like to see ramped up.

13           Do you think there would be some

14   willingness to -- again, on the silo side of

15   the conversation -- bring the two main

16   agencies together to potentially address some

17   of the bureaucratic difficulties that

18   sometimes emerge when you have two agencies

19   co-managing a program?   I was hoping we could

20   work out a way of perhaps streamlining some

21   of the challenges people have told us about.

22   And I'm sure you know what I'm talking about.

23           COMMISSIONER BALL:   Sure.    We'd be

24   very open to that.    You know, bureaucracies
                                                         252

 1   tend to be very much about process.      But

 2   we're trying to actually look at what we do

 3   at the Department of Agriculture in terms of

 4   how do we change somebody's life in New York

 5   every day for the better, not just continuing

 6   the process.

 7         So that's a challenge the Governor

 8   gives to all commissioners, I know, not just

 9   me, but that we actually move the ball

10   forward.   We'd be happy to do that.

11         ASSEMBLYWOMAN LUPARDO:    I have a

12   little bit of time left.   I want to talk

13   about industrial hemp.

14         We have -- surprising -- we have an

15   oversupply.    I think we may have issued a few

16   too many permits, or people didn't have

17   correct markets set up in advance.      The price

18   has plummeted, people have a lot of material

19   that they can't sell.    I think this

20   underscores the need to get Empire State

21   Development a little bit more in the loop.

22         To that end, I see Grow-NY is a

23   potential vehicle to have that conversation

24   or, in some other place, to bring that group
                                                        253

 1   together.    Because I think some unwise

 2   decisions are being made or, on the other

 3   hand, funding is not being released because,

 4   again, the silo between Ag & Markets and SED

 5   may not have been there as well as it might

 6   have been at the beginning stages of what

 7   we've done.

 8            But now we've got farmers in crisis,

 9   products being held back, projects falling

10   through.    So I was just wondering if hemp

11   industry might get in on the Grow-NY or if

12   you have a vastly different plan for those

13   funds.

14            COMMISSIONER BALL:   Well, I think this

15   is an evolving issue, as you know.     We

16   have -- the market is very exciting, as you

17   know, but it's in a rough patch right now, I

18   think, without solid markets.     So we had

19   quite a lot of industrial hemp grown without

20   a market, without a consumer, on speculation,

21   which is challenging.

22            We've had some regulatory uncertainty.

23   We went from one version of regulation and

24   licensing to another version of regulation
                                                        254

 1   and licensing, and now we're looking at an

 2   interim final rule.    And so we've had a

 3   moving target with regards to how we operate

 4   here.

 5           But I think in New York State we have

 6   an excellent plan.    In New York our pilot

 7   research program I think is correct.       We've

 8   got a good hemp bill now to work from.        I

 9   think we're setting up for the long haul,

10   with the appropriate amount of research and

11   dedication to the varieties we're going to

12   need.   So I think we're in a good place going

13   forward.

14           I'm going to Washington tomorrow, I'll

15   meet with FDA tomorrow, and I'll be back

16   there a couple of weeks later to continue

17   this conversation.    We need USDA and FDA on

18   the same page with us.

19           ASSEMBLYWOMAN LUPARDO:    Thanks a lot.

20   Thanks for your work.

21           COMMISSIONER BALL:    Thank you.

22           CHAIRWOMAN WEINSTEIN:    Thank you.

23           Senate?

24           CHAIRWOMAN KRUEGER:     Senator Seward.
                                                        255

 1            SENATOR SEWARD:   Thank you, Madam

 2   Chair.

 3            And Commissioner and constituent, it's

 4   good to see you once again.

 5            COMMISSIONER BALL:   Good to see you,

 6   neighbor.

 7            SENATOR SEWARD:   I wanted to return to

 8   a discussion on the State Fair and the

 9   proposed additional five days of the fair.

10   And I'm sure you're aware by now of some of

11   the concerns of our county fairs where there

12   is overlap.    I'm aware of Erie County

13   objecting.    Over the weekend one of my local

14   counties, Delaware County, is very concerned

15   about the overlap.

16            The overlap does complicate life for,

17   you know, the exhibitors, 4Hers and others.

18   Usually if they do well at the county fair,

19   they can go on to the State Fair, that type

20   of thing.    As well as vendors and others that

21   are involved in the county fairs and also the

22   State Fair, which usually sort of rounds out

23   the season for us in terms of fairs in

24   New York State.
                                                         256

 1         Was there any consideration of this

 2   overlap and what that would mean in

 3   unintended consequences?   And is there a way

 4   that that can be mitigated in some way?

 5         COMMISSIONER BALL:       Yes, thanks,

 6   appreciate the question.   And obviously

 7   there's -- it generated some concern.      But

 8   yes, our director of the State Fair, Troy

 9   Waffner, has already reached out to every one

10   of the county fairs that are affected here,

11   and to the vendors.   And to the livestock

12   folks who are showing.   They're actually

13   meeting together on Friday.      We're going to

14   accommodate all their needs.      If someone is a

15   vendor who typically has been, for example,

16   in two fairs, the county fair and the

17   State Fair, we're going to allow them -- save

18   them space and move them in.      At the

19   appropriate time, we're going to let them

20   come in.   Things like that.

21         We're not rearranging livestock shows

22   so the children who are -- or young people

23   who are exhibiting at a county fair don't

24   have to stop and run off to the county fair
                                                        257

 1   because -- or the State Fair because it

 2   started five days earlier.

 3            So we have a pathway forward, I think,

 4   to mitigate the concerns that everyone has.

 5   And I think frankly, you know, we've seen

 6   such growth at the State Fair in terms of

 7   representing and connecting agriculture to

 8   more people than ever.     We're excited about

 9   continuing that effort, and we certainly are

10   going to mitigate any harm that the county

11   fairs may feel.    I think it's going to be

12   worked out.    Troy is doing an excellent job

13   there.

14            SENATOR SEWARD:   Well, that's good to

15   hear, and I hope it works out to everyone's

16   satisfaction.

17            COMMISSIONER BALL:   Yeah, I feel very

18   confident.

19            SENATOR SEWARD:   I also wanted to

20   follow up on the discussion on the hemp.      As

21   you know, we did some major hemp reforms in

22   New York State to reintroduce this product

23   here in New York.

24            And can you elaborate in terms of what
                                                     258

 1   the activities of the department are now and

 2   will be in terms of helping to cultivate and

 3   enhance this -- I think it could be described

 4   as an emerging opportunity for us here in

 5   New York State.

 6          COMMISSIONER BALL:   Yeah, I think it

 7   still has a lot of excitement and a lot of

 8   potential.   I don't think we've really

 9   touched it all yet, so I'm still optimistic

10   about it.

11          But at the Department of Agriculture

12   we're going to retain the licensing of

13   growing industrial hemp in New York State.

14   We'll stay in that role; that's what we do

15   well and understand.   When it comes to CBD

16   and processing, that is going to be moving

17   over to Department of Health, where it

18   belongs, and eventually to the Office of

19   Cannabis Management, which I think is the

20   Governor's plan ultimately and I think a good

21   one.

22          So we're going to retain our interest

23   in the growers and the farming and the seed

24   production and the research, et cetera, to
                                                     259

 1   keep this crop viable.   When you get to the

 2   health side of things and daily recommended

 3   allowances and that sort of thing, that

 4   rightfully belongs somewhere else.

 5          SENATOR SEWARD:   Thank you.

 6          CHAIRWOMAN KRUEGER:     Thank you.

 7          Assembly.

 8          CHAIRWOMAN WEINSTEIN:    Assemblyman

 9   O'Donnell.

10          ASSEMBLYMAN O'DONNELL:    Good

11   afternoon, Commissioner.   Very nice to meet

12   you.

13          I'm going to confine my questions to

14   the two areas of the budget that relate to

15   where my committee is.   The first has to do

16   with Taste NY.

17          So I have to admit to you I was a

18   great skeptic of that program, but I have to

19   assure you that every time I drive here on

20   the Taconic I stop there and get my ginger

21   yogurt from the Old Chatham Sheepherding

22   Company.   And I really like it.   I really,

23   really like it.

24          So there seems to be a limited cost to
                                                         260

 1   it, though, right?    The properties are

 2   generally owned by us.    So is it profitable,

 3   Taste NY.

 4         COMMISSIONER BALL:      Yes.   But it's a

 5   startup, of course.    It's a marketing

 6   program.    But last year I think we sold

 7   $18 million worth of New York agricultural

 8   products from 1200 producers, roughly, around

 9   the state.

10         So it's working out really well.       It's

11   been an unqualified success in my book.      You

12   stopped at our number-one store, Todd Hill.

13   Well-run, well-managed and, for the amount of

14   square footage in that store, it amazes me

15   how much product they move.

16         ASSEMBLYMAN O'DONNELL:     Well, the

17   people who work there are lovely.     But that's

18   the only real expense is employees, right?

19   Other than electricity.

20         So who has control over the buildings?

21   Is that you or is that somebody else?

22         COMMISSIONER BALL:     It depends on the

23   location.    You know, we've got welcome

24   centers as well around the state.     Some are
                                                      261

 1   operated through DOT, some are operated

 2   through other entities.    But it depends on

 3   who's there.

 4         Our role in those stores and welcome

 5   centers is frankly getting the product there

 6   with the growers and getting someone to

 7   operate those facilities.    Which has largely

 8   been done, so far, through Cornell

 9   Cooperative Extension.

10         ASSEMBLYMAN O'DONNELL:     So I'm

11   concerned about moving that out of your

12   jurisdiction.   I mean, the economic

13   development is the place where things are

14   sent so we can no longer find out what goes

15   on.

16         And that's what my experience is, and

17   I am troubled by the constantly moving things

18   that are important that are working into

19   someone else's pool so they get to play with

20   the money, rather than the Legislature

21   getting to do its job.    That's just a

22   commentary.

23         The State Fair.     I went a couple of

24   years ago, I had a great time.    I'd never
                                                          262

 1   been there before.   I mean, for a Long Island

 2   kid, the State Fair is kind of far away.        I

 3   went for Gay Day.    It was a lot of fun.     They

 4   had a marching band and a parade.

 5            And all I want to say is I'm happy

 6   capital money is being put in.      I think you

 7   need to get to work with the tourism folks

 8   because LGBT tourism is a billion-dollar

 9   industry.

10            COMMISSIONER BALL:    Billion, with a B?

11            ASSEMBLYMAN O'DONNELL:    Billion.

12   Okay?    And so they like to show up at things.

13   And so if you can really amp that up, you may

14   actually get more people at the State Fair

15   for whenever those events are.      And I'd be

16   more than happy to assist you with drag

17   queens and other things should you need to do

18   that to make Gay Day a more popular

19   destination.    Thank you.

20            COMMISSIONER BALL:    Thanks for the

21   offer.    Appreciate it.

22            CHAIRWOMAN KRUEGER:    Senator Ortt.

23            SENATOR ORTT:   Good afternoon,

24   Commissioner.
                                                     263

 1         Changing gears -- I only have five

 2   minutes, so I'm going to ask both my

 3   questions, and then I would just ask that you

 4   answer them in whatever order you would like.

 5         One is -- and we've talked about this

 6   briefly in my office, but I would like to ask

 7   you and get your answer before the committee

 8   here on the record -- if you can provide just

 9   an update on the Wage Board, specifically,

10   the component of the Farm Fair Labor Act last

11   year, and where the department is with the

12   rollout of that law.   Because obviously

13   there's a significant impact to the budgets

14   of a lot of our farmers, as you well know.

15         And then the other question I had,

16   under the Governor's proposed recreational

17   marijuana plan, who would be able to grow --

18   and, you know, there's always been a concern

19   that if the state decided who it would be, it

20   would be limited and that it would be

21   basically replacing Big Tobacco with Big

22   Corporate Marijuana, so to speak, and that

23   there wouldn't be an opportunity for small

24   family farms -- which make up the bulk of my
                                                         264

 1   district -- to, you know, be able to be a

 2   part of whatever comes out of this process.

 3            So if you could comment on that as

 4   well.

 5            COMMISSIONER BALL:   Sure.   I'll tackle

 6   that one first since it's right in front of

 7   my mind.

 8            Technically, who would be responsible

 9   for that would be initially Department of

10   Health and then the Office of Cannabis

11   Management, which is the ultimate end goal, I

12   think, of the Governor.

13            So I'll just -- in talking about that,

14   the Governor pulled together all of the

15   agencies that had any piece, any interest in

16   adult use marijuana, medical, however it was.

17   So I'm talking, you know, the State Police,

18   Ag & Markets, Health, but also the Office of

19   Child and Family Services and Addiction.       So

20   there was quite a gang of us around the

21   table.

22            And the charge to all of us was how

23   to -- if New York was going to go down this

24   route, let's make sure we think of every
                                                        265

 1   perspective from every agency about how this

 2   would work properly.   So having said that it

 3   would be the responsibility of the Department

 4   of Health and the responsibility of the

 5   Office of Cannabis Management, ultimately, we

 6   all will have input into how that happens,

 7   how that happens in the neighborhood.

 8           And from my standpoint, making sure

 9   this is an opportunity for our growers, not

10   just foreign growers or foreign suppliers,

11   but for New York State growers, is going to

12   be on the top of my list.

13           With regards to the Wage Board, that

14   is up to the Commissioner of Labor to decide

15   the third person on the Wage Board.   In the

16   current law as it stands, that happens very

17   soon, in March.   We talk daily.   It is her

18   decision.   We have great input there, we have

19   a great conversation, and getting this right

20   is important to her, it's important to me,

21   it's important to the Governor's office as

22   well.

23           So I really don't know the answer.     I

24   can't give you an answer today about the
                                                         266

 1   Wage Board except to say that it's of great

 2   sensitivity to the grower community and to

 3   us.

 4          SENATOR ORTT:   Do you see it -- is it

 5   on-track to make a determination in March?

 6          COMMISSIONER BALL:      I'm very satisfied

 7   with the conversations that we're having at

 8   this point.

 9          SENATOR ORTT:   And so on the other

10   question on the -- so obviously I guess my

11   take-away, though, is that as of right now,

12   we don't have the final details on who would

13   be able to be growing or not growing -- we

14   don't have those specifics, is that a

15   fair --

16          COMMISSIONER BALL:    That's correct,

17   yes.

18          SENATOR ORTT:   Okay.     Thank you very

19   much, Commissioner.

20          COMMISSIONER BALL:      Thank you.

21          CHAIRWOMAN KRUEGER:      Assembly.

22          CHAIRWOMAN WEINSTEIN:      Assemblywoman

23   Woerner.

24          ASSEMBLYWOMAN WOERNER:     Thank you.
                                                      267

 1          Commissioner, always a pleasure to see

 2   you.

 3          COMMISSIONER BALL:    Great to see you,

 4   thank you.

 5          ASSEMBLYWOMAN WOERNER:    I have a

 6   number of questions.   I'll go through them

 7   one at a time, though.

 8          The first one is related to farmland

 9   conservation, I notice that there's a slight

10   decrease in the amount of money allocated to

11   farmland conservation.   And I'm just curious

12   in terms of is there -- it was such a small

13   decrease that I'm just curious whether that's

14   a sign that you're seeing less of a demand

15   for farmland conservation or it was a

16   budget-balancing activity.

17          COMMISSIONER BALL:    Yeah, there's not

18   less demand at all.

19          And I think -- I don't see this as a

20   retreat.   Please don't see that as a retreat

21   either.    We actually had substantial

22   increases last year.   We've consistently been

23   at this level.   I'm confident we'll stay in

24   this neighborhood.    We've got some
                                                       268

 1   reappropriations that I'm comfortable with.

 2            And if you look back -- lift a layer

 3   up, the Dairy Transitions Program was, you

 4   know, a great addition to farmland

 5   preservation.    We put out $30 million and

 6   then put out a second round.      And we also

 7   added an additional non-dairy round for other

 8   farms that were affected by trade, the

 9   economy, debt, things of that nature, to open

10   it up to a broader audience, $14 million.

11            So I think we still take farmland

12   preservation very seriously in New York

13   State.

14            ASSEMBLYWOMAN WOERNER:   Okay, thank

15   you.

16            When we were here in October or

17   November for the budget oversight hearing,

18   the Cornell veterinarian highlighted that

19   Salmonella Dublin is still a critical threat

20   to the dairy herds.    And I notice that in the

21   Executive Budget Salmonella Dublin is not

22   included in what the Executive Budget funds.

23            Again, is that -- is the state's

24   veterinarian in concurrence with Cornell's
                                                      269

 1   veterinarian that we do need to fund the

 2   Salmonella Dublin work, or is there some

 3   disagreement about that?

 4          COMMISSIONER BALL:   No, we're going to

 5   need your help on that one.   That's a

 6   critically important issue from my

 7   perspective.   I think we did well with the

 8   Executive Budget to get everything funded

 9   that we did, but we're going to need some

10   help from the Assembly and the Senate to get

11   everything across the finish line.   It is a

12   partnership and a process, and, you know,

13   it's a great point.

14          That diagnostic lab at Cornell is one

15   of the best in the country, and Dr. Elvinger

16   works very closely with Dr. Smith.   And

17   they're both, in my estimation, the top two.

18          ASSEMBLYWOMAN WOERNER:   Great, thank

19   you.

20          I notice that the Taste of NY funding,

21   which last year was 1.1 million, and the

22   agriculture economic development promotion

23   dollars, which were I think a million dollars

24   last year, those two line items appear to
                                                           270

 1   have been combined into a single

 2   appropriation for agriculture promotion.        Is

 3   that -- am I correct in understanding that?

 4           COMMISSIONER BALL:    I don't think so.

 5   Am I missing something?      Did we just

 6   simply -- we had some funding for Taste, for

 7   example, at ESD last year.      We had 1.1 on our

 8   line.   That's been moved to ESD.     They have

 9   the wallet, and that made sense, they're

10   still the funder.

11           ASSEMBLYWOMAN WOERNER:    Okay.    So

12   we're then increasing the appropriation for

13   promotion?

14           COMMISSIONER BALL:    For Grow-NY?

15           ASSEMBLYWOMAN WOERNER:    Well, I'm

16   looking at the one that says services and

17   expenses of programs to promote agriculture

18   economic development.

19           COMMISSIONER BALL:    Okay.   That's

20   Grow-NY.

21           ASSEMBLYWOMAN WOERNER:    Okay.

22           COMMISSIONER BALL:    So Grow-NY is a

23   fund that we've been managing for many years

24   that helps in off-cycles between budgets.        We
                                                           271

 1   were able to accomplish some things with

 2   that.

 3            For example, when we learned that

 4   federally the SNAP benefit for farmers market

 5   nutrition coupons would no longer function

 6   with software, we stepped in and filled that

 7   gap for the whole country, actually.

 8            Vital Brooklyn was funded out of that

 9   pot of money.    A number of things that we do

10   at the department to get us through a budget

11   cycle.    It's not something we need to

12   appropriate every year; it carries us for

13   typically several sessions.    But when we

14   have a --

15            ASSEMBLYWOMAN WOERNER:   We need an

16   extra million in that fund?

17            COMMISSIONER BALL:   Yes.   Yeah.   To

18   replace what we've spent.

19            ASSEMBLYWOMAN WOERNER:   Okay.   And

20   then my last question has to do with the

21   on-farm health and safety program

22   administered by Mary Imogene Bassett

23   Hospital.

24            That used to be tractor rollover.      And
                                                           272

 1   what's -- tractor rollover has -- is not

 2   there, but now we have on-farm health and

 3   safety programs.    Can you tell me what you

 4   envision there?

 5            COMMISSIONER BALL:    Yeah, it's just a

 6   bigger scope right there.      That's NYCAM.     We

 7   work particularly closely with NYCAM, they're

 8   the leaders in the country, as far as I'm

 9   concerned, in on-farm health and training for

10   farmers, training for farmworkers, fitting of

11   respirators and the rollover project is under

12   there.    We're just making it a bigger

13   program.

14            ASSEMBLYWOMAN WOERNER:    Okay.    Great,

15   thank you so much.

16            COMMISSIONER BALL:    Oh, gosh, thank

17   you.

18            CHAIRWOMAN WEINSTEIN:    Senate?

19            CHAIRWOMAN KRUEGER:     Thank you.

20            Hi, Commissioner.    Just a couple of

21   questions.

22            So I like the State Fair also.       I had

23   a great time this summer.      Will you please

24   stop telling those children they can get the
                                                        273

 1   pigs to go in a straight line?    It doesn't

 2   matter how many hours they try to get them in

 3   a straight line, they're just not going to do

 4   it.

 5         (Laughter.)

 6         CHAIRWOMAN KRUEGER:      It was quite

 7   amusing to me to watch that.

 8         But that wasn't my really serious

 9   question.    So we know that we are a state of

10   small family farms and we have been losing

11   them over the years.   Are we steady now, are

12   we continuing to lose?   Are we actually

13   seeing anyone new coming into farming?     Where

14   is the future going?

15         COMMISSIONER BALL:    If you look at the

16   national ag statistics numbers, I don't think

17   there's anything that leapt off the page at

18   me that we didn't see coming.    We know that

19   farms tend to be getting a little bit larger

20   in size.    We know that many -- actually,

21   statistically, about 23 percent of our farms

22   do not have a next generation identified on

23   the farm.

24         And we further know that with regards
                                                            274

 1   to the recent trade challenges between the

 2   United States and our foreign consumers --

 3   China and Mexico, Canada and European Union,

 4   to name a few specifics -- we lost 3,000

 5   dairy farms in the U.S. in 2018 because of

 6   those trade issues, period.

 7            So we're seeing some right-sizing, I

 8   think.    We have -- that's a challenge.     On

 9   the other hand, I see a huge interest in

10   agriculture.    I've been able to speak to

11   groups at SUNY Cobleskill and SUNY

12   Morrisville and Cornell.   The number of young

13   people interested in agriculture is amazing.

14            And I was talking this morning with a

15   group.    You know, 1 percent of us are engaged

16   in production agriculture in the country.         In

17   New York, 1 percent of us feed the other

18   99 percent.    But if you think about the food

19   system, we think a little bigger.    We think

20   about logistics, transportation, food safety,

21   blockchain technology, drone technology.

22   Then suddenly we're talking about 23 percent

23   of the jobs in the country.    Suddenly you're

24   talking about 43 million people that work in
                                                        275

 1   the food system.    And suddenly we're not a

 2   minority.    Suddenly we're thinking a little

 3   bit differently.

 4         So I think identifying, in my mind, as

 5   I get around farms in the state, I see we

 6   don't have enough workers on the farms.      I

 7   see we don't have enough middle management,

 8   enough senior management, enough young

 9   ownership in our food and beverage processing

10   industries, dairy plants.    We need more

11   skills.     So I think our challenge really,

12   then, is to connect career paths in the food

13   system to not just college kids, where we do

14   a great job of educating them when we get

15   them to Cornell or our land grant system, but

16   in junior high school, grade school,

17   connecting the dots towards a defined career

18   path that will bring you to an opportunity.

19         So having said all of that, I'm

20   excited about the number of small farms.       I

21   see that growing.    I'm excited about the

22   number of women on farms.    And frankly,

23   that's only because nationally they figured

24   out how to count women.    They have been on
                                                       276

 1   farms, but now we're getting credit for that.

 2         I see the number of Hispanic farmers

 3   growing.    One I'm very concerned about and we

 4   highlighted it in the Governor's State of the

 5   State and budget, is minorities on farms,

 6   particularly black farmers.   And so we're

 7   going to put together a workgroup to increase

 8   the diversity and the opportunities for them

 9   to be involved in agriculture.    We have

10   nationally, unfortunately, a checkered past

11   with regards to federal programs that have

12   actually worked to their detriment.   But

13   we've already been listening, we've already

14   had several meetings with farmers in those

15   categories, and I'm excited about working

16   together.    And we will probably reach out to

17   you for some help.

18         CHAIRWOMAN KRUEGER:     Thank you.

19         So I was reading a report that said

20   that because of the trade policies of the

21   Trump administration, there had been real

22   harm done to farms, but that programs of the

23   USDA that apparently didn't even go through

24   Congress doubled the amount that American
                                                       277

 1   farms were getting compared to what they've

 2   lost.   So they were getting two for one from

 3   the federal government for dollars they lost

 4   in being able to sell because of our foreign

 5   trade policies.

 6           Are we seeing any of those wins in

 7   New York?    Even though personally that's not

 8   how I would like to see agriculture economics

 9   growing, with non-proven, non even perhaps

10   legal federal subsidy programs.     Are we

11   getting our share of what apparently

12   Washington is currently handing out all over

13   the place?

14           COMMISSIONER BALL:    I'm going to give

15   a thoughtful answer, I hope.     No, we're not

16   getting our share.

17           And I would say frankly, from the

18   New York growers' standpoint, and I suspect

19   nationally, farmers would much rather have a

20   customer than a subsidy from taxpayers --

21           CHAIRWOMAN KRUEGER:    I agree.

22           COMMISSIONER BALL:    -- because they

23   lost a customer.

24           So particularly with regards to us in
                                                      278

 1   New York, Canada and Mexico, Mexico buys

 2   25 percent of our dairy exports and Canada is

 3   our biggest trading partner.    And China

 4   occupies the headlines in all of this because

 5   they're so large.   But for us in New York,

 6   what we do in trade with Canada and Mexico

 7   dwarfs what we do with China.

 8         So building a relationship with

 9   another country, with a buyer in another

10   country, takes many years in just that, the

11   building of a relationship.    And when it's

12   severed, many times it's hard to put that

13   back together again because they find other

14   sources, and so you're cultivating

15   relationships and beginning anew.

16         We would much rather have the

17   customers than the small amount of trade

18   mitigation money.   By and large the largest

19   portion of the trade mitigation money --

20   we've seen two rounds, they're talking about

21   a third round -- went to five states in the

22   Midwest, largely to commodity crops.

23         We saw some in dairy here, and it was

24   helpful.   But at a time when they were losing
                                                          279

 1   a dollar a hundredweight because of the trade

 2   challenges, they were getting back about

 3   11 cents.    So clearly, much better to have

 4   the customer than have a small amount of

 5   return.

 6            So this is something that's ongoing,

 7   and I think being able to be involved and

 8   represent New York State at the tri-national

 9   accord, since I've been commissioner, where

10   those conversations happen about ironing out

11   so-called irritants between the countries --

12   tariffs, et cetera -- I feel like the new

13   USMCA program is a step forward for

14   agriculture and fixes some of the challenges

15   that NAFTA had for us in agriculture.         So I

16   think optimistically, with that regard,

17   agriculture, in mind, I think that's a step

18   forward.    The sooner it gets ratified and

19   implemented and we get rid of those tariffs,

20   the better off we're going to be.

21            CHAIRWOMAN KRUEGER:     Thank you.

22            Assembly?

23            CHAIRWOMAN WEINSTEIN:    Assemblywoman

24   Glick.
                                                       280

 1         COMMISSIONER BALL:     Hi.

 2         ASSEMBLYWOMAN GLICK:     Hi,

 3   Commissioner.

 4         COMMISSIONER BALL:     Great to see you.

 5         ASSEMBLYWOMAN GLICK:     Good to see you.

 6         I think you said that there are some

 7   areas in which we're seeing some new forms

 8   coming on board.    Are they in a particular

 9   sector?   Are they doing more vegetables

10   rather than dairy, or is there a mix?

11         COMMISSIONER BALL:    I think dairy is

12   in a rightsizing.    We are seeing, you know, a

13   lot of farmers exit because of the impact of

14   four very difficult years for them, and

15   perhaps not another generation there.   But

16   there's still optimism in dairy, there's

17   still young people starting out in dairy.

18         But I think the largest growth we've

19   seen is in small farms and vegetables, small

20   fruits, the farm-to-table movement, the

21   growth of CSAs, farmer markets, those kinds

22   of things.   It's a sober market, it's a

23   mature market, but there's optimism there.

24   And we're seeing innovative niche marketing
                                                          281

 1   happening in a lot of places.

 2            ASSEMBLYWOMAN GLICK:     Green markets in

 3   New York City, is that a program that the

 4   department interfaces with the city on, and

 5   is there expansion?     Ten years ago we had one

 6   big market; now we've got, in my district,

 7   three.     The biggest one is actually there

 8   Monday, Wednesday, Friday and Saturday;

 9   that's at Union Square.       That's the biggest

10   one. But we now have one down in Tribeca on

11   the weekend and one in the West Village on

12   the weekend, and I think there's a small one

13   by City Hall, which is also in my district,

14   during the week.

15            So I'm just wondering, is that

16   something that either Taste of NY or Grow is

17   interfacing with to help the city figure out

18   who they can connect with to expand the

19   offerings at these markets?

20            COMMISSIONER BALL:    Yeah, that's been

21   a -- you know, we've got more farmers'

22   markets in New York than anywhere in the

23   country.     So that's not going to change, I

24   don't think.     It's going to adjust itself a
                                                      282

 1   little bit, but I think we have over 150 in

 2   New York City.

 3            So we work very closely with GrowNYC;

 4   they're the largest manager of farmers'

 5   markets in New York City.   There are other

 6   groups that manage farmers' markets there.

 7   But I see that as a very direct-to-consumer,

 8   exciting -- it's very good for those growers,

 9   who are largely not really large growers but,

10   you know, family farms doing a good job

11   there.

12            Grown & Certified I think is a way to

13   highlight, you know, what they're doing and

14   add more clarity to that.   At the same time

15   we're seeing growth in aggregators, not just

16   CSAs, not just farmers' markets.    We're

17   seeing growth in food boxes, people

18   interested in -- this is a particular

19   interest of ours at the Department of Health,

20   Department of Agriculture, is we have

21   neighborhoods that don't have farmers'

22   markets or even grocery stores -- South

23   Bronx, for example.    Ironically, home to the

24   Hunts Point market, the biggest terminal
                                                        283

 1   market in the world.   But people there don't

 2   have access to all the things that we grow.

 3         So we're actually putting a shovel in

 4   the ground this spring on a 120,000-square-

 5   foot food hub in the South Bronx, to be that

 6   place where New York product can be

 7   distributed through food boxes with GrowNYC's

 8   help, and get to some of those other

 9   neighborhoods.

10         As you know, every borough in New York

11   is bigger than any city we have upstate.     And

12   so figuring out how to distribute the food,

13   get it to the people who want it -- the good

14   news is that there's more interest in

15   New York food today.   The Grown &

16   Certified program is highlighting good things

17   about New York agriculture, and people want

18   to find it.   And so I think we're driving

19   people to those markets.

20         So this past December, I was in

21   New York City at the Javits Center.    I cut

22   the ribbon on the largest -- second-largest

23   produce show in the country.   We had the

24   biggest presence of buyers from all over the
                                                      284

 1   world and the biggest presence of growers

 2   from New York ever.   And -- so there's not

 3   just one avenue for this, there's many

 4   avenues.   But I see it growing.

 5         ASSEMBLYWOMAN GLICK:    Just quickly,

 6   there continues to be the concern, obviously,

 7   of having to deal with pests and therefore

 8   pesticides, but also the damage to the bee

 9   and pollinator.   What's the position of the

10   department on how those are balanced?    There

11   are some types of pesticides that seem to be

12   disrupting pollinators more than others.

13         COMMISSIONER BALL:    I got a chance as

14   commissioner to go to Washington a few years

15   ago, for my first trip there, and I met with

16   EPA and I met with the administration at that

17   time about pollinator plans and how we

18   correctly deal with the challenge in

19   pollinators that the whole country and the

20   whole world is seeing.   And came back and

21   talked to the commissioner at DEC, and

22   together we cochaired a pollinator workgroup,

23   because we wanted to dive into this.

24         There was a lot of knee-jerk reactions
                                                       285

 1   to the challenges of pollinators -- you know,

 2   ban this, ban that, stop doing this, stop

 3   doing that.   But we actually assembled quite

 4   a group of people from all the communities,

 5   environmental groups, grower groups, and

 6   decided that in New York we would dive into

 7   this problem in a big way.    We created a

 8   pollinator task force, we created a

 9   pollinator plan for New York State, what's

10   going on in New York State.

11         So half a million dollars from

12   New York State went to -- through us --

13   300,000 to Cornell to establish a tech team

14   to actually dive into what is the issue.     We

15   know we have forage issues, we know we have

16   pesticide issues, we know we have insect

17   virus stress, climate change issues.   What is

18   it that's going on here?

19         And they're doing great work, we've

20   learned great things.   And we've been able to

21   identify -- it's not as simple as banning a

22   particular pesticide -- as a matter of fact,

23   I would say very calmly and with great

24   confidence that public enemy number one for
                                                        286

 1   pollinators is the Varroa mite, which is

 2   growing like crazy.

 3            CHAIRWOMAN WEINSTEIN:    Thank you.

 4            CHAIRWOMAN KRUEGER:     Assembly.

 5            CHAIRWOMAN WEINSTEIN:     We have

 6   Assemblyman Jones.

 7            ASSEMBLYMAN JONES:    Commissioner, how

 8   are you.

 9            COMMISSIONER BALL:    Assemblyman, good

10   to see you.

11            ASSEMBLYMAN JONES:    Good to see you

12   again.    I'm sure it's good to see me as well,

13   yes.

14            (Laughter.)

15            ASSEMBLYMAN JONES:    He says that with

16   a little bit of a smirk, but we're actually

17   very good friends, and I thank you for

18   everything that you've done for the farming

19   industry.

20            A few things as regarding the budget,

21   some things that weren't in there.       And I'm

22   going to go in particular with our dairy

23   farmers.    And I'm going to make a statement,

24   and I want you to elaborate on what is in
                                                       287

 1   this budget in particular to help our dairy

 2   farmers.    Because for reasons that you've

 3   stated, and we've all stated in the past,

 4   they're really suffering right now.   We have

 5   this new farm labor bill that's putting the

 6   crunch on more and more of our dairy farmers,

 7   our farmers all over, but in particular dairy

 8   as well.

 9         What do you see here in the budget

10   that will be of a benefit to our dairy

11   farmers?    I know we've talked about the USMCA

12   agreement, and although that's an encouraging

13   sign for our dairy industry, I think everyone

14   can agree that it's not going to be a total

15   fix-all.

16         Also, there are other areas we're

17   talking about.   Even in our own state we're

18   not expanding markets for milk and dairy

19   products.    When we talk about flavored bans

20   in New York City and other areas of the

21   state, I honestly can't understand that, but

22   that's another issue that I would ask your

23   department to help us out with as well.

24         But what do you see in this budget,
                                                       288

 1   moving forward, in particular that helps our

 2   dairy farmers and helps the dairy industry?

 3         COMMISSIONER BALL:    Well, thanks for

 4   that question.   That's a big question, of

 5   course.   That's more than a five-minute job,

 6   but I'll do my best.

 7         First of all, with USMCA, we are

 8   fixing the Class 6/Class 7 challenge with

 9   Canada.   That's going to enable dry powder to

10   be sold fairly around the world, and

11   currently they've been undercutting us in a

12   very difficult way.    Probably Class 6/Class 7

13   pricing instituted by Canada a few years ago

14   affected probably $60 million of milk, over

15   300 trailerloads that went in that direction,

16   which is not going there now.   So that's big.

17         A couple of things.     As you know, we

18   have a Milk Marketing Advisory Council.    It's

19   our dairy cooperatives, Cornell University

20   with their dairy economists, dairy farmers.

21   And we're in the same room, and we throw all

22   these issues out and say what can we do.

23         A couple of things we're focusing on.

24   One is Farm to School and school milk.     In
                                                      289

 1   the budget, you know, we have the No Student

 2   Goes Hungry program, the Farm to School

 3   programs.    But we officially recognize, this

 4   year, NY Thursdays.   We started this program

 5   in New York City school food, 1200 schools in

 6   New York City, where we celebrate what's on

 7   the plate from New York.

 8         And so we're pulling together a group,

 9   very successful, every Thursday they

10   celebrate New York -- obviously, the question

11   is why not Friday, why not Monday, why not

12   Tuesday.    But we're taking this around the

13   state, pulling together a group to look at

14   projects that will increase the share of

15   New York products, particularly dairy, in our

16   schools.

17         We're going to put a pilot program out

18   about getting rid of the half-pints that you

19   and I grew up with -- very little imagination

20   in the creation of that half-pint; looks

21   pretty much the same as it did when we were

22   in school -- and looking at bulk milk

23   dispensers, keeping it colder, keeping it

24   fresher, saving money for the schools, things
                                                        290

 1   like that.

 2         So school milk and getting more school

 3   milk, not less school milk.    We've seen a

 4   decline in fluid milk consumption.    So I

 5   think that's, you know, something we're going

 6   to continue to look at.

 7         We still continue to work with Empire

 8   State Development on our processing plants.

 9   We're doing a good job with cheese, we're

10   doing a good job with yogurt, we're doing a

11   good job with cottage cheese, et cetera.      So

12   as our plants age in New York, we need to

13   continue to upgrade them, keep them

14   competitive.   So those are things we look at

15   with both the Dairy Promotion Order Board and

16   our partners at Empire State Development, and

17   we've been able to put $50 million into dairy

18   plants in the last two years.

19         ASSEMBLYMAN JONES:    I would -- I have

20   to put a plug in for a few programs that I

21   didn't see in the budget.

22         COMMISSIONER BALL:    Okay.

23         ASSEMBLYMAN JONES:      One, the Northern

24   New York Agricultural Development Program,
                                                           291

 1   helps farmers, helps all farmers and dairy

 2   farmers as well, with the best land

 3   practices, helps them operate in the most

 4   efficient manner possible now.    So I have to

 5   put in a plug for that program.

 6         COMMISSIONER BALL:    Great program.

 7         ASSEMBLYMAN JONES:    And I will say,

 8   going back to the flavored milk ban, I think

 9   I can name 1,000 things right now that are

10   worse for our children than flavored milk.        I

11   cannot see that that is a good thing.      It's

12   certainly not a good thing for the dairy

13   industry.   And chocolate milk actually is

14   good for our kids.   Thank you.

15         CHAIRWOMAN WEINSTEIN:    Senate?

16         CHAIRWOMAN KRUEGER:     Thank you.

17         We have one additional Senator,

18   Senator Ritchie, who showed up just in time

19   to ask you a question, Commissioner Ball.

20         COMMISSIONER BALL:    Senator.

21         SENATOR RITCHIE:   Good afternoon,

22   Commissioner.

23         I just wanted to follow up on

24   Assemblyman Jones's question on Northern
                                                      292

 1   New York Ag Development.   That and Harvest NY

 2   are two programs that have really helped the

 3   North Country and two programs that were not

 4   funded.   So I'm just wondering, in the final

 5   hours, if you and your department will be

 6   looking for some kind of regional balance to

 7   make sure, at a time when our farmers are

 8   just hanging on, to make sure those programs

 9   like Northern New York Ag Development and

10   Harvest NY are somehow included in the final

11   budget.

12         COMMISSIONER BALL:    You bet.    Let's

13   continue that conversation.   Look forward to

14   working with both of you to get those in

15   there, absolutely.   Good programs.

16         SENATOR RITCHIE:     Thank you.

17         CHAIRWOMAN KRUEGER:     Thank you.

18         Assemblymember.

19         CHAIRWOMAN WEINSTEIN:     Assemblyman

20   Palmesano.

21         ASSEMBLYMAN PALMESANO:    Thank you,

22   Commissioner, for being here.   Sorry, I

23   didn't mean to startle you.

24         A number of us have cited a lot of
                                                       293

 1   concerns with the Farm Labor Act that was

 2   passed last year, the impact it's going to

 3   have on our agricultural community,

 4   especially those of us who represent rural

 5   upstate areas.   I know it's still kind of

 6   early, but are you getting any initial

 7   feedback with the 60 hours overtime and the

 8   impact that's already having on our

 9   agricultural community whatsoever?

10         COMMISSIONER BALL:     We had, as you

11   know, as this was being contemplated in the

12   last session, I think we saw a tremendous

13   effort by the entire agricultural community.

14   They pulled themselves together, the veg

15   growers, the fruit growers, dairy farmers,

16   Farm Bureau, into Grow-NY.

17         They lobbied all of you, and we spent

18   a lot of time together.   And I think they got

19   comfortable with the notion of an overtime at

20   60 hours, they got comfortable with the idea

21   of some of the other issues that were coming

22   forward in that bill.   They're uncomfortable

23   with some of the last-minute changes to the

24   bill and some of the language issues.    But by
                                                         294

 1   and large I think the industry benefited from

 2   coming together and having those real

 3   conversations with all of you.

 4            We continue to have conversations with

 5   the Department of Labor and the Governor's

 6   office and the industry.      I'm encouraged that

 7   we're going to get the details of this

 8   correct.

 9            ASSEMBLYMAN PALMESANO:    I was

10   encouraged you're saying that you have

11   consistent input with the Department of Labor

12   commissioner relative to the Farm Labor Wage

13   Board.    Do you expect that to continue as we

14   move forward in more of an official -- will

15   they have hearings, as far as the department

16   actually testifying, or will it be more just

17   a consulting with them along the way?

18            COMMISSIONER BALL:    I think we've

19   cultivated an excellent relationship there,

20   and I just can't see in the crystal ball, you

21   know, what the exact details are going to be

22   like, but I know that our opinions are

23   welcome and we're going to continue to work

24   towards getting this right.
                                                      295

 1         ASSEMBLYMAN PALMESANO:     Commissioner,

 2   as you know, agriculture is the number-one

 3   industry in our state.   Ninety-eight percent

 4   of the farms in New York State are

 5   family-owned farms.   Over the past five

 6   years, we lost 20 percent of our dairy farms.

 7   Farm labor costs as a percentage of that

 8   farming continues to be a very big challenge

 9   for our agriculture community.

10         Even prior -- before passing the

11   minimum wage bill several years ago, farm

12   labor costs as a percentage of net farm

13   income in the country was 36 percent, but in

14   New York State it was 63 percent.    And we've

15   continued to see net farm income decline as

16   farm labor costs rise and then with the

17   legislation we passed.

18         Obviously -- you have to agree that

19   obviously New York State is at a very

20   competitive disadvantage to our neighboring

21   states who don't have the regulations and

22   challenges that we have.   And when you throw

23   into play the property tax burden, especially

24   the proposal the Governor has made this year,
                                                      296

 1   in his budget this year, which would look to

 2   shift Medicaid costs to counties and lifting

 3   that cap, which would be a devastating burden

 4   to our agricultural community, to our

 5   farmers, as property taxes are a very high

 6   cost to our agricultural community -- as my

 7   colleague mentioned, what do you see bold --

 8   is there anything bold coming from the

 9   administration, from the Governor that's

10   going to help our agricultural community?

11   Because all's I see is things that continue

12   to hurt our agriculture industry.

13         And I know many of my colleagues are

14   very supportive of this, I get it.    The only

15   thing I want to just reiterate, with no

16   farms --

17         COMMISSIONER BALL:   No food.

18         ASSEMBLYMAN PALMESANO:    -- there's no

19   farm labor.   With no farms, there's no food.

20   And I just wish we could be really cognizant

21   of that and see some more bold policies,

22   because I am concerned with what's happened

23   over the past few years.

24         And, again, the Governor's proposal on
                                                     297

 1   the Medicaid issue that will lift that cap

 2   and shift that cost directly to counties,

 3   which is going to be borne by the property

 4   tax burden, which will be devastating to the

 5   agricultural community and our farmers as

 6   well, our family farmers, 98 percent of which

 7   are family-owned farms.

 8         I just wonder if you have any comments

 9   on that.

10         COMMISSIONER BALL:   Well, obviously I

11   live in a rural community, and so rural

12   development is a personal issue for us.

13   Agriculture occupies all the space in rural

14   communities, so.

15         I understand your concerns.   I can't

16   speak too directly to the Medicaid issues,

17   other than there is a need for the local

18   people to be involved in the whole process,

19   not just the state.   So I think that's the

20   effort and the point of the Governor's

21   Medicaid re-look there.

22         With regards to the agricultural

23   industry, I think, you know, our job is to

24   look at connecting the dots.   You know, we
                                                       298

 1   have some of the best growers in the country

 2   in New York State.    We have the best land

 3   grant system for education in agriculture in

 4   the country.   We have water.    We've got good

 5   land, good resources, and we have the biggest

 6   marketplace in the world.    So most of my

 7   efforts are going to be directed at how do we

 8   advantage our farmers, in a challenging

 9   economy and a mature market, to take full

10   advantage of it.

11         And I'm excited about this year.       I

12   know there's a lot of things to worry about,

13   but I still personally would not farm

14   anywhere else in the country.

15         ASSEMBLYMAN PALMESANO:      Thank you,

16   Commissioner, for what you do.     Appreciate

17   it.

18         CHAIRWOMAN KRUEGER:       Thank you,

19   Commissioner Ball.    Thank you for being with

20   us here today.   This is the end of our

21   questioning of you.

22         COMMISSIONER BALL:     I was just getting

23   warmed up.

24         CHAIRWOMAN KRUEGER:       It doesn't mean
                                                      299

 1   you won't get follow-up questions from every

 2   member here, and you'll be happy to answer

 3   them, I'm sure.

 4         I'm going to call up together, as a

 5   panel, the New York State Public Service

 6   Commission, Chair John Rhodes, and NYSERDA,

 7   Alicia Barton, president and CEO, because

 8   we've decided that the kinds of questions

 9   that will be asked pretty much go to both of

10   you, and that way you will each be able to

11   testify and then, when questions come at you,

12   you'll figure out who's the best person to

13   answer.

14         (Discussion off the record.)

15         CHAIRWOMAN KRUEGER:    Good afternoon.

16         Since we called you up as a panel, you

17   can flip a coin to decide which of you wishes

18   to testify first.

19         PSC CHAIR RHODES:   Do you want to go?

20         NYSERDA PRESIDENT BARTON:      Sure, I'd

21   be happy to.

22         CHAIRWOMAN KRUEGER:    Okay.   Make sure

23   that the microphone is turned on, and get it

24   as close as you can.   Because unfortunately
                                                        300

 1   the microphone system sort of fades in and

 2   out in here, so sometimes we're having

 3   trouble understanding the people -- and

 4   sometimes people are having trouble

 5   understanding us.    So we're doing our best

 6   with trying to adjust it.

 7            NYSERDA PRESIDENT BARTON:   How do I

 8   sound?

 9            CHAIRWOMAN KRUEGER:   I think that's

10   good.    Great.

11            NYSERDA PRESIDENT BARTON:   Let me know

12   if I need to adjust.

13            And -- well, good afternoon, Chair

14   Krueger, Chair Weinstein, all the members of

15   the committees.     Thank you for the

16   opportunity to be here today.    And I know

17   you're focused on keeping opening remarks

18   brief, and I'll be sure to do that.

19            Again, I'm Alicia Barton, president

20   and CEO of NYSERDA, and I look forward to

21   continuing to work with the Legislature on

22   the many critical climate and energy issues

23   facing our state and nation.

24            Governor Cuomo's unprecedented
                                                       301

 1   commitment to fighting climate change has

 2   fundamentally reshaped how we think about the

 3   climate crisis in New York.   We have set our

 4   sights on long-term targets to decarbonize

 5   our economy, coupled with immediate actions

 6   to tackle climate change and grow a clean

 7   energy economy.

 8         The Executive Budget will continue

 9   New York's record as the most aggressive

10   climate leader in the nation through a

11   $33 billion, five-year plan to tackle climate

12   change head-on.   As you know, the Climate

13   Leadership and Community Protection Act is

14   now our law of the land, and it sets the

15   standard for other states to follow.    The act

16   codifies Governor Cuomo's nation-leading

17   targets, including a major ramp-up of

18   renewable energy and a mandate to

19   dramatically reduce emissions.

20         Thank you for your partnership in

21   putting New York on this path, which will

22   drive continued investment and clean energy

23   and ensure that the benefits of clean energy

24   accrue to disadvantaged communities, create
                                                       302

 1   tens of thousands of new jobs, improve public

 2   health and the environment, and attract

 3   billions of dollars in private investment.

 4            NYSERDA is already rapidly advancing

 5   the pathways that will grow our clean energy

 6   economy in every region of the state.    For

 7   example, critical to achieving our 70 percent

 8   renewable energy goal is the development of

 9   9,000 megawatts of offshore wind, which will

10   generate clean energy while creating a

11   once-in-a-generation new industry that will

12   generate economic benefits throughout the

13   state.

14            Our work took a giant step forward

15   last year with the announcement of NYSERDA's

16   first offshore wind awards that will generate

17   nearly 1700 megawatts of clean renewable

18   electricity and represent the nation's

19   largest offshore wind awards to date.    During

20   this year's State of the State address,

21   Governor Cuomo announced that NYSERDA will

22   issue its second solicitation for offshore

23   wind in 2020, which is expected to yield an

24   additional 1,000 megawatts of clean power.
                                                       303

 1         On land, NYSERDA's work to advance

 2   New York's renewable energy market continues

 3   to grow, with over 2700 megawatts of solar,

 4   wind and storage installed since 2011 and

 5   more than 6,000 megawatts contracted and

 6   under development.   The Governor recently

 7   announced that NYSERDA has selected an

 8   additional 21 large-scale renewable projects

 9   for contracts, which will create over 2,000

10   short- and long-term jobs.

11         In total, NYSERDA has now awarded

12   contracts to 67 land-based wind and solar

13   projects, creating $9.5 billion in direct

14   investment all over the state.   Through pilot

15   and host community agreements, these projects

16   will also directly benefit host communities

17   upstate and downstate.

18         But we also acknowledge that we must

19   accelerate our progress towards getting these

20   projects built.   As the Governor stated in

21   his 2021 budget address, we can and will do

22   better when it comes to construction

23   timelines for renewable energy projects.     We

24   are committed to not only setting goals but
                                                      304

 1   to actually achieving them and achieving them

 2   faster than any other state.

 3         We have made great progress on

 4   distributed solar.   Our NY-Sun program has

 5   made New York a national leader, and 2019 was

 6   our most productive year yet.   We are well on

 7   our way to achieving our target of

 8   6,000 megawatts, and we recently crossed the

 9   2,000-megawatt mark for installed projects.

10   Since 2011, NY-Sun has spurred incredible

11   growth while cutting the costs of solar in

12   half, leveraging $4 billion in private

13   investment, and creating nearly 12,000 jobs.

14         We are similarly proud of our work to

15   support the increased deployment of energy

16   efficiency and clean heating and cooling

17   solutions, and NYSERDA plans to invest

18   approximately $200 million to complement

19   utility incentive programs and create a

20   statewide clean heating and cooling market

21   framework.   This initiative will save

22   consumers more than $13 billion on energy

23   bills and reduce 3 million metric tons of

24   carbon pollution.    We will also commit to an
                                                      305

 1   additional $30 million for heat pumps for

 2   low- and moderate-income New Yorkers to help

 3   ensure healthy and affordable energy

 4   solutions for those New Yorkers.

 5         Finally, we must continue to address

 6   emissions from the transportation sector,

 7   which is the largest producer of greenhouse

 8   gas emissions in our state.    In the State of

 9   the State, the Governor announced that we

10   will convene a blue ribbon task force to grow

11   the electric vehicle sector.    This will

12   complement NYSERDA's Drive Clean rebate

13   program and the state's Charge Ready program

14   as critical components to transform our

15   transportation sector.

16         So as you can see, clean energy is

17   already increasing on a rapid trajectory

18   across our state.   The Executive Budget

19   recommends up to $22.7 million for NYSERDA to

20   support critical research and development and

21   new clean energy businesses.    This funding

22   also supports the state's energy planning

23   functions, such as the state greenhouse gas

24   inventory and other purposes authorized in
                                                     306

 1   the enabling legislation.

 2         In conclusion, I am extraordinarily

 3   proud of NYSERDA's leadership in advancing

 4   clean energy solutions on behalf of the

 5   Governor and on behalf of the people of this

 6   great state.   We know the nation and the

 7   world will be watching, and our actions will

 8   serve to cement New York's position as a

 9   leader in clean energy, environmental

10   protection, and the fight against climate

11   change.

12         This concludes my opening remarks.

13   Thank you very much.

14         CHAIRWOMAN KRUEGER:     Thank you.

15         Now John Rhodes will testify, and then

16   we will ask you both questions together.

17         PSC CHAIR RHODES:     Well, thank you.

18         Good afternoon, Chair Krueger, Chair

19   Weinstein, and other distinguished members.

20   My name is John Rhodes, and I am CEO of the

21   Department of Public Service and chair of the

22   Public Service Commission.

23         The commission's jurisdiction extends

24   over investor-owned utilities, including six
                                                     307

 1   major electric/gas utilities, five major gas

 2   utilities, and three major private water

 3   companies.   It also has jurisdiction over

 4   small telephone companies, hundreds of water

 5   companies, municipal electric utilities,

 6   cable companies, power generators and energy

 7   service companies.   The department, which is

 8   the staff arm of the commission, also

 9   provides regulatory oversight and review of

10   LIPA and its service provider

11   PSEG-Long Island.

12         Our top priorities in fiscal year

13   '20-'21 include continuing Governor Cuomo's

14   nation-leading climate plan, which includes a

15   mandate for a carbon-free electric system;

16   modernizing our utility systems; and ensuring

17   affordable energy for all New Yorkers,

18   especially for our most vulnerable citizens.

19   This plan is putting the state on a path to

20   economy-wide carbon neutrality.

21         This year the commission expects to

22   decide several major rate cases.   This

23   important review will be informed by the

24   in-depth analysis of department professional
                                                      308

 1   staff, including engineers, accountants,

 2   economists, and analysts, to ensure a clear

 3   and transparent assessment of the benefits

 4   and costs of utility investments.   It's our

 5   job, and I can't stress this enough, to

 6   protect customers over the short and the long

 7   term, and thus ensure safe and reliable

 8   service at just and reasonable rates while

 9   protecting the environment.

10         The recent Con Ed decision provides a

11   good example of this process.   In that

12   decision, backed by strong stakeholder

13   support, the commission significantly reduced

14   the original rate request, protected

15   low-income consumers, strengthened energy

16   efficiency efforts, and advanced important

17   climate change initiatives, and ensured

18   stronger enforcement of the liability

19   commitments.

20         There are many issues that will be

21   addressed by the department in the coming

22   fiscal year.   Reliability is paramount.   The

23   department's investigation into last summer's

24   Con Ed service interruptions in Manhattan and
                                                      309

 1   Brooklyn that left more than 106,000 electric

 2   customers without power is nearing

 3   completion.    If we determine that Con Ed

 4   failed to provide safe and adequate service,

 5   we will hold their shareholders responsible

 6   to compensate customers.

 7         Since we last met, the department has

 8   created two new offices to focus on emergency

 9   preparedness and regulatory enforcement.

10   Given past experiences of severe-weather

11   events and their impact on the electric

12   system, the commission established the Office

13   of Resiliency and Emergency Preparedness,

14   dedicated to ensuring that the state's

15   utilities prepare for and respond

16   appropriately to severe weather and other

17   emergency events.

18         The department has also added a new

19   Enforcement Unit dedicated to ensuring

20   compliance with the Public Service Law and

21   regulations.   These efforts have borne fruit.

22   Last month, the department secured a

23   $10.5 million settlement with New York State

24   Electric & Gas Corp. and Rochester Gas &
                                                     310

 1   Electric Corp., following those companies'

 2   failures to adequately prepare for and

 3   restore service after storms in 2018, our

 4   largest ever for a utility failing to follow

 5   procedures related to an emergency response.

 6         At my direction, department staff will

 7   build on our landmark energy affordability

 8   proceeding to ensure that we reach every

 9   New Yorker in need.   This initiative today

10   provides nearly 2 million low-income

11   New Yorkers with $248 million in direct cost

12   relief each year, and limits energy costs for

13   low-income New Yorkers to no more than

14   6 percent of household income -- half of what

15   many of these New Yorkers had been paying.

16         We will build on the state's success

17   in driving record investment in large-scale

18   renewable energy development by working with

19   NYSERDA to obtain at least 9 gigawatts of

20   offshore wind power and continue the annual

21   Renewable Energy Standard solicitations for

22   onshore resources to achieve the 70 percent

23   renewable electricity by 2030 and 100 percent

24   clean electricity by 2040 goals that are
                                                     311

 1   mandated by the CLCPA.

 2         As called for in the Governor's State

 3   of the State proposal, the department, in

 4   conjunction with the Department of State,

 5   will develop new rules to make clear what

 6   regulated telecom companies need to do to

 7   ensure consumers using landline phones are

 8   not harassed by robocalls.   These new rules

 9   will include penalties for landline phone

10   companies that fail to protect consumers from

11   this scourge.

12         In the telecom sector, we continue to

13   focus on infrastructure modernization and

14   oversee investment in broadband buildout to

15   help achieve Governor Cuomo's vision for

16   universally available high-speed broadband.

17         We are positioned to deliver on our

18   core mission and to meet the Governor's

19   ambitious agenda.

20         This concludes my remarks.   I welcome

21   your questions.

22         CHAIRWOMAN KRUEGER:    Thank you.

23         All right.    Senator Todd Kaminsky.

24         SENATOR KAMINSKY:   Thank you.
                                                     312

 1         Chairman Rhodes, I'd like to first

 2   direct your attention to a critical issue on

 3   Long Island -- that is American Water.

 4   American Water has failed the customers on

 5   Long Island who have seen skyrocketing bills

 6   and, in comparison to those receiving

 7   municipal water sometimes down the block or

 8   in the next town, find it incomprehensible

 9   that the Public Service Commission approved

10   rate hikes so high, especially without the

11   information to let them know when a certain

12   amount of water they're using will trigger a

13   much higher rate.

14         People are incredulous, they're

15   dumfounded, and they want to know how this

16   could be -- especially since in many cases

17   the water is still brown, still causes lots

18   of problems for them, and they're having a

19   really difficult time with this company.

20   Some have suggested municipalization; others

21   want to know whether Liberty, the new company

22   coming in, is going to do any better.

23         But I would like to begin with you and

24   to just ask whether the Public Service
                                                        313

 1   Commission, which you chair, wants to show an

 2   interest in providing relief and helping the

 3   customers on Long Island who are beleaguered

 4   by American Water.

 5         PSC CHAIR RHODES:    Absolutely.   That's

 6   our mission.   We agree with you that the

 7   experience over the past couple of years has

 8   been not what it needs to be.   And we've been

 9   working with the company to make things

10   better.

11         That said, the proposed acquisition

12   that you mention of American Water's assets

13   in New York by Liberty, presents an

14   opportunity for a reset.   A transaction of

15   that nature has to be approved by the

16   Public Service Commission to go forward.     The

17   standard for us to say yes is, is it in the

18   public interest?   The parameters of what the

19   public interest looks like are pretty clear

20   from the facts that you know.   They have to

21   include better rates for customers.   They

22   have to include better engagement with

23   customers, just the interaction with the

24   utility.   They have to include preservation
                                                         314

 1   of the conservation policy, which we think

 2   are -- which we know are important long-term.

 3         And you mentioned information.

 4   Clearly there's a need, if we're going to

 5   have customers be able to manage their water

 6   bills and usage, they need an information

 7   infrastructure, advanced water metering.      And

 8   we expect this transaction to be an

 9   opportunity to reset things in those

10   directions.

11         You mentioned municipalization.

12   Should I go there for a minute or --

13         SENATOR KAMINSKY:   Look, I -- if you'd

14   like, of course.   Look, I'm certainly

15   heartened to hear that you want to be part of

16   the solution in helping give people financial

17   relief who have been, you know, the victims

18   of American Water practices.   So that's

19   certainly good to hear.

20         PSC CHAIR RHODES:   So on

21   municipalization, we don't take a position on

22   specific situations like this.    We simply

23   note that these are questions that come up

24   from time to time.   They're complicated.     And
                                                       315

 1   the one thing we do urge is that there's a

 2   carefully study of the costs and the benefits

 3   of such a move.    And to the extent that

 4   there's -- whatever technical assistance that

 5   we can contribute, of course we'll do that.

 6         SENATOR KAMINSKY:    Okay.   Well, I look

 7   forward to working with you on this.    The

 8   days of seniors receiving $250, $300 water

 9   bills on -- who have fixed incomes -- needs

10   to be behind us.   And I'm heartened by your

11   words today, and I'll hold you to it, and I

12   look forward to working with you on this.

13         PSC CHAIR RHODES:    Thank you, sir.

14         SENATOR KAMINSKY:    I'd like to now

15   turn to the issue of the Long Island Power

16   Authority tax certiorari proceedings,

17   especially with the community I represent,

18   Island Park, with respect to the Barrett

19   Power Plant.   The deal that LIPA has on the

20   table now I think would be devastating to the

21   residents.   It would skyrocket their school

22   taxes and leave their community in an

23   extremely crippled position after having been

24   exposed to this polluting, you know, fossil
                                                         316

 1   fuel plant for many decades.

 2         I can't imagine in a budget of our

 3   size, especially when we're talking about

 4   transitioning plants to a new green economy,

 5   and with all the money going into that, that

 6   we can't do better and have LIPA want to help

 7   this community more, a community that is full

 8   of good people who were devastated by Sandy,

 9   a hardscrabble town where people are trying

10   to get by.   A tax increase of this size would

11   be devastating, and we cannot just let it

12   happen.

13         As somebody who is -- you know, who

14   oversees so much of this process, I think we

15   cannot just write off these plants and these

16   communities as something of a bygone era.

17   We've got to work together to help them.      And

18   with all the money in the budget and all the

19   regulatory power you possess, I'd like to ask

20   you to be part of the solution and help us

21   move to a better place.

22         PSC CHAIR RHODES:    So thanks.   Again,

23   this is a tough issue.    You know, I, like

24   you, I think see two issues here.   One
                                                       317

 1   relates to the local tax funding and the

 2   future of that.    That's one where we don't

 3   weigh in.    It's a litigated matter, it's in

 4   settlement now.    And we're also not in a

 5   position to really weigh in on budget

 6   discussions.

 7            The second issue is one about solution

 8   finding, and particularly as it relates to is

 9   there a future for the plant, which if I were

10   in your constituents' shoes, I'd have some

11   question marks about, you know, where is that

12   going.

13            And we know that part of the

14   settlement under discussion is the creation

15   of a community advisory board, if I have the

16   name right.    That is an obvious vehicle for

17   dealing with just these kind of issues and --

18   I can speak for, you know, for my agency and,

19   you know, the good officers of LIPA -- have

20   them be part of the solution in trying to

21   come up with answers for that future.

22            But maybe my colleague has something

23   also to offer.

24            NYSERDA PRESIDENT BARTON:   Sure.
                                                      318

 1   Well, thank you for raising these very good

 2   questions, Chairman Kaminsky.   And, you know,

 3   this is obviously a critically important

 4   issue in your district; I imagine other

 5   colleagues of yours have similar questions.

 6          And we believe that thinking

 7   thoroughly and proactively about the future

 8   of these facilities is a central part of the

 9   work we need to do in implementing the

10   Climate Leadership and Community Protection

11   Act.   As you know, Mr. Chairman, the law does

12   create a just transition working group, for

13   example, so that communities, labor, workers,

14   others have a direct seat at the table to

15   participate in crafting solutions as we look

16   forward to this energy transition that,

17   again, will be impacting this facility in

18   your district but facilities across the state

19   as well.

20          Already, not waiting for that work to

21   start, in this year's State of the State

22   address Governor Cuomo directed NYSERDA to

23   make available direct grant assistance to

24   communities that are grappling with trying to
                                                      319

 1   understand reuse options and what can be the

 2   future of these facilities.

 3         I know in the case of Barrett there

 4   have been discussions about potentially

 5   energy storage or offshore wind injection,

 6   and we believe those are issues we really

 7   should get to the bottom of and we should be

 8   looking for every opportunity as we go

 9   through this transition to find those types

10   of solutions where we can seek to repower

11   facilities with renewable energy where

12   possible -- but in any event, where it may

13   not be possible, to work directly with the

14   communities and the impacted workers to help

15   them understand their options and think about

16   the future.

17         SENATOR KAMINSKY:   Okay.   I think it's

18   important that nobody gets left behind.   And

19   I have tremendous concerns that that -- of

20   what the settlement would do to Island Park,

21   and I think this budget, the next few months

22   we have, we should use as an opportunity to

23   address that.   And I appreciate your

24   willingness to work with me on that.
                                                      320

 1         To Ms. Barton, a question about

 2   anaerobic digesters and whether the energy

 3   they create can be -- or whether you're

 4   amenable to discussing whether that could be

 5   included in the CLCPA going forward.   I think

 6   it was an omission that should be addressed

 7   in light of our wanting to use that form of

 8   energy going forward.   But if it's left out,

 9   it's obviously not going to send the signals

10   it needs to develop that.

11         And I was wondering what you thought

12   about that.

13         NYSERDA PRESIDENT BARTON:    Yeah, thank

14   you for raising that important issue as well.

15         I think one thing that is absolutely

16   clear is that with the level of ambition

17   under the Climate Leadership and Community

18   Protection Act, we need to be open-minded

19   about a wide range of solutions.   And NYSERDA

20   has historically separated anaerobic

21   digestion facilities and believes that there

22   is a lot of ability for that technology and

23   those projects to contribute to the state's

24   climate goals.   So we would absolutely be
                                                          321

 1   open to discussing those issues with you.

 2            Again, obviously, that would involve

 3   the houses and the Executive coming together.

 4   But from our perspective, we're very open to

 5   that conversation.

 6            SENATOR KAMINSKY:   Thank you very

 7   much.

 8            CHAIRWOMAN KRUEGER:   Thank you.

 9            Now we turn to Assemblymember Michael

10   Cusick, the chair of the Energy Committee.

11            ASSEMBLYMAN CUSICK:   Thank you.

12            Thank you, Chair Rhodes,

13   President Barton.    Thank you for being here

14   today.    And also it's been a pleasure working

15   with you in the last year or so on energy

16   issues throughout the state.     So again, thank

17   you for your service.

18            Chair Rhodes, I'll start with the PSC.

19   I have a couple of questions on the budget

20   proposal given by the Governor last week.       In

21   the presentation the Governor made a proposal

22   about revamping Article X.     I know there's

23   nothing specific yet, but there's talk of

24   maybe 30-day amendments and all.
                                                      322

 1         But would you be able to just talk to

 2   us a little bit about what do you see as the

 3   primary problems that exist currently that

 4   might be getting addressed in this budget?

 5         PSC CHAIR RHODES:   The simple answer

 6   is that the ambitions that we as a state have

 7   and the Governor has require us to be more

 8   certain and swifter in getting large-scale

 9   renewable energy projects and associated

10   energy transmission upgrades through the

11   siting process.

12         We've got ambitions, and we're not

13   fast enough to meet those ambitions, and

14   that's the job.

15         ASSEMBLYMAN CUSICK:   Okay.   But as of

16   right now, is it safe to say there are no

17   specifics yet to be -- that you could

18   announce here today at the hearing?

19         PSC CHAIR RHODES:   There are none.    I

20   can assure you the Governor has the state's

21   energy team and other agencies working

22   full-out on the issue.

23         ASSEMBLYMAN CUSICK:   Okay.   And we can

24   expect something in the next 30 days?
                                                        323

 1           PSC CHAIR RHODES:   I believe that's

 2   the commitment that you heard from the

 3   Governor's office.

 4           ASSEMBLYMAN CUSICK:   Okay.   Thank you.

 5           In November, Chair, you and I had

 6   spoken and we spoke about the issue of

 7   staffing and that DPS has 10 employees

 8   exclusively focused on the Article X issues.

 9   Can you provide an update on the specific

10   staffing at DPS on these issues, the

11   Article X issues?

12           PSC CHAIR RHODES:   I'll have to get

13   back to you.   The numbers I recall are a

14   little bit higher.

15           I think we have 14 full-time and

16   28 folks all in that are working on this, and

17   that's not including the folks at other

18   agencies, principally Environmental

19   Conservation, that are also engaged in this

20   task.   But we'll get you those numbers.

21           ASSEMBLYMAN CUSICK:   Okay, I'd

22   appreciate that.

23           Also in the language of the budget

24   there was a Part C -- a Part Z, I'm sorry, Z
                                                       324

 1   as in zebra.    This new language would allow

 2   DPS staff to undertake administrative

 3   investigations and commence enforcement

 4   proceedings against regulated public utility

 5   corporations.     Can the PSC point to specific

 6   examples now that this language would be

 7   needed for?

 8         PSC CHAIR RHODES:     Well, in general

 9   it's a fact that the PSC has been faced with

10   increased opportunities for enforcement in

11   recent years.    I can go through the litany of

12   incidents -- East Harlem, Riley/Quinn storms,

13   the Rochester windstorm, Charter, a series of

14   operator qualification and other gas safety

15   issues and multiple gas utilities, New York

16   American Water.

17         And the pace of severity of those have

18   put -- have drawn our attention to the fact

19   that we in fact lack some of the enforcement

20   mechanisms that other agencies have as

21   standard practice.    And this text basically

22   aligns us with the practice at other

23   enforcement agencies and allows us to

24   initiate and get going on these
                                                       325

 1   investigations in a much more straightforward

 2   manner.

 3         ASSEMBLYMAN CUSICK:    And in this plan,

 4   is there specifics on how DPS would keep the

 5   public informed?   Is there a mechanism in

 6   place --

 7         PSC CHAIR RHODES:   These are public --

 8   these are publicly transparent processes.

 9   It's really going -- you know, it's path of

10   going through -- issuing a notice of

11   violation, which can be done by staff rather

12   than a more intricate staff prepares

13   commission to develop an order to show cause

14   and the like.

15         But the transparency with the public

16   and the ability to get to the truth, you

17   know, in an open way is in fact enhanced.

18         ASSEMBLYMAN CUSICK:    Thank you.   Thank

19   you, Chair.

20         President Barton, in the language of

21   the budget on the bond act, the "Restore

22   Mother Nature," there is language in there

23   that expands the use -- it says that -- along

24   with other examples, it says expand the use
                                                    326

 1   of renewable energy to mitigate climate

 2   change.

 3         Can you -- how would renewable energy

 4   be expanded, in your words?   What would be

 5   some of the specifics that it would be

 6   expanded, based on this language?

 7         NYSERDA PRESIDENT BARTON:     Sure.

 8   Well, you know, as I think my colleague

 9   Commissioner Seggos testified a little

10   earlier today, there is a lot in development

11   in regards to the specifics of how the bond

12   act will be presented to voters and

13   identifying the projects that would be

14   funded.

15         Certainly we can think of no shortage

16   of needs for investments in renewable energy

17   and other types of clean energy solutions --

18   energy efficiency and the like.   And so all

19   of that is within the purview of what the

20   Governor's office and, you know, my

21   colleagues in the various agencies that will

22   be working on the bond act will be looking

23   at.

24         You know, again, that's against the
                                                      327

 1   context of course of the entire Executive

 2   Budget commitment to $33 billion over five

 3   years, which I just have to say stands as an

 4   extraordinary commitment to investing in

 5   renewable energy.    I am not aware of another

 6   state that is making these types of

 7   significant investments.   New York clearly is

 8   standing out as a leader in investing in

 9   renewable energy and clean energy solutions

10   of all kinds, and in investing in

11   climate-related investments like those that

12   could be supported under the "Restore Mother

13   Nature" Bond Act.

14         So, you know, again, happy to talk

15   about the details of what NYSERDA is

16   planning, and we do look forward to working

17   with many of you to see that bond act passed.

18         ASSEMBLYMAN CUSICK:     Great.   You

19   brought up the commissioner of DEC, who

20   testified earlier.   My colleague Assemblyman

21   Englebright asked the question about staff,

22   and there was language in this budget that

23   would have NYSERDA authorized to transfer up

24   to $4 million to the General Fund for
                                                        328

 1   climate-change-related services.     Which we in

 2   the Assembly understand that would include

 3   27 new DEC employees that would specifically

 4   be going towards these climate change

 5   services.

 6         We didn't get specifics from the

 7   commissioner then.   Do you have any specifics

 8   as to what these employees would be working

 9   on?

10         NYSERDA PRESIDENT BARTON:    Well,

11   again, I can confirm, yes, that's the

12   Executive Budget proposes that $4 million

13   transfer, and it would support the work of --

14         ASSEMBLYMAN CUSICK:     And 27 employees,

15   is that the correct number?

16         NYSERDA PRESIDENT BARTON:    I don't

17   believe it was tied to a specific head count.

18   And actually I would have to defer to DEC on

19   how that funding happens.   NYSERDA is

20   essentially a pass-through for that

21   collection from utility bills and then

22   transfer to the General Fund.

23         But I do understand that it would

24   support the Climate Office's work.    We
                                                        329

 1   obviously have a lot to do and not a lot of

 2   time to do it in, in order to start making

 3   the ambitions of the Climate Leadership and

 4   Community Protection Act a reality.    But I do

 5   have to defer the specific questions about

 6   the head count and what those individuals

 7   will be working on to DEC as the agency that

 8   would be, you know, overseeing those

 9   individuals.

10         ASSEMBLYMAN CUSICK:    Okay.    Thank you.

11         Thank you.

12         CHAIRWOMAN KRUEGER:    Thank you.    Thank

13   you very much.

14         Senator Little -- welcome back,

15   Senator Little.   But Senator Seward I think

16   had some questions first.

17         SENATOR SEWARD:    Thank you,

18   Madam Chair.

19         And speaking of chairs, Chair Rhodes

20   and Ms. Barton, thank you for being here.

21         I wanted to return to the --

22   Mr. Rhodes, the discussion on the expanded

23   administrative investigations on the part of

24   your agency.   Can you kind of run through
                                                     330

 1   the -- more specifically, I mean, what would

 2   change under these proposed rules?   What

 3   additional powers would you have?

 4         PSC CHAIR RHODES:    So the principal

 5   change is really the initiation of the

 6   investigations.   Right?   So it would -- the

 7   basis for all this is that regulated

 8   companies have an obligation, unqualified, to

 9   comply with the regulations and the orders of

10   the commission.

11         So the scope of the enforcement is

12   unchanged.   Have they done that, and have

13   they done that to protect the consumers

14   and -- just and reasonable rates, and safe

15   and adequate service, and all that stuff.

16         At issue is do we -- how do we

17   initiate those investigations.   And the

18   process that we currently have in place is

19   slow and takes a set of steps -- requires us

20   to go through a set of steps that other

21   agencies do not have.   And it just is more

22   efficacious to have staff, which are the

23   knowledgeable folks that are able to judge

24   whether there's a reasonable chance that a
                                                      331

 1   gas safety violation has occurred, to

 2   initiate the investigation in a very

 3   straightforward manner, not losing anything

 4   in the way of transparency and due process

 5   and the like, but simply to get going on the

 6   investigation rather than having a

 7   multi-month cycle before that can happen.

 8         SENATOR SEWARD:   Okay.   Thank you.

 9         I wanted to hear your reaction to the

10   proposal on the net neutrality rules for

11   internet providers.   If large users like

12   these movie-streaming services no longer have

13   the ability to purchase faster service, will

14   this slow down the streaming for the average

15   user who subscribes to those types of

16   services?   This seems to be an expanding part

17   of the market.

18         PSC CHAIR RHODES:   So net neutrality

19   is an interesting and complicated topic --

20         SENATOR SEWARD:   We've got less than

21   two minutes.

22         PSC CHAIR RHODES:   Pardon?

23         SENATOR SEWARD:   We've got less than

24   two minutes for your reply.
                                                      332

 1         PSC CHAIR RHODES:    The bedrock of

 2   progress that we've seen in all of these

 3   industries, including these fast-moving

 4   technology ones, is that competition is the

 5   friend of consumer service.

 6         And net neutrality is a way of

 7   leveling the playing field and enhancing

 8   competition, which over the long run, across

 9   classes of consumers, is the best way to

10   drive competition, which then in turn is the

11   best way to drive cost down and value up for

12   customers.    That's the fundamental policy

13   proposition that's behind this policy, and it

14   makes sense.

15         SENATOR SEWARD:    Have your staff at

16   the PSC or anyone else, for that matter,

17   looked at that issue of whether it's going to

18   slow down the streaming for the average user?

19         PSC CHAIR RHODES:    We have, but we can

20   take another look and report back to you on

21   that issue.

22         SENATOR SEWARD:    Okay, thank you.

23         One quick question on the broadband

24   expansion that was cited here.    That is
                                                      333

 1   certainly a critical issue, particularly in

 2   the more rural areas of our state.    We

 3   continue to hear complaints that people do

 4   not have broadband yet.   And can you describe

 5   what this broadband expansion is going to

 6   look like?    Are we going to have another

 7   round of funding or require these other

 8   servers to reach more customers?

 9         PSC CHAIR RHODES:    So the agreement

10   with Charter calls for Charter to fully serve

11   the originally committed 145,000.    So -- may

12   I continue?    So that's -- so that's in

13   process.

14         It requires the company to make a

15   contribution to some funding that could

16   further serve additional customers.   And ESD

17   and the BPO is constantly in the business of

18   assessing the completeness of its side of the

19   bargain -- of the program.

20         I do note that one of the frequent

21   complaints is that townships, municipalities,

22   you know, have a hard time or say they have a

23   hard time on finding out whether they're even

24   in the plan.   There's a process for doing
                                                         334

 1   that.   It does call for the township to sign

 2   a confidentiality agreement with the company,

 3   because it is competitive information.       That

 4   doesn't need to be a burden, and we can help

 5   with that.

 6           SENATOR SEWARD:   Thank you.   Thank

 7   you.

 8           CHAIRWOMAN KRUEGER:   Thank you.

 9           Assembly.

10           ASSEMBLYMAN CUSICK:   Yes.

11           Assemblyman Ra.

12           ASSEMBLYMAN RA:   Thank you.

13           I want to go back to the topic that my

14   colleague Senator Kaminsky had brought up,

15   New York American Water.

16           I represent a portion of the Sea Cliff

17   service area up on the North Shore.    And

18   certainly many of the same issues that

19   Senator Kaminsky's constituents have dealt

20   with, mine have as well, as well as my

21   colleagues that represent the rest of that

22   service area.

23           I know that there are a few community

24   groups now and a few elected officials,
                                                      335

 1   including myself, who have written to the PSC

 2   asking for, you know, enhanced opportunities

 3   for public comment on this sale.   I think

 4   everybody would be very happy to have that

 5   entity out of their lives, but by the same

 6   token as Senator Kaminsky mentioned, they

 7   want to hopefully move towards municipal

 8   water in the future.   I know that's not, you

 9   know, something that you can take a position

10   on at this point.

11           But how is the PSC approaching getting

12   adequate public comment on this sale to

13   ensure that these ratepayers are protected?

14   Because they've been through this before, as

15   these service areas have turned over in the

16   past.

17           PSC CHAIR RHODES:   The basic

18   architecture of the process starts with a

19   petition or an application by the company for

20   this transaction.   And that then opens up the

21   season for public comment.

22           And the always available mode for

23   public comment is for written comment into a

24   docket on this proceeding, and it's our
                                                     336

 1   experience that concerned stakeholders have

 2   found that a very effective method.

 3         In issues like this, there is also

 4   often a case to be made for public hearings

 5   in the relevant geography.   Literally

 6   speaking, it's too early for us to have an

 7   opinion on that, but I understand that that

 8   would be a very welcome approach in this

 9   case, and we will think about it very

10   seriously.

11         ASSEMBLYMAN RA:    Okay, thank you.

12         And I would certainly again

13   encourage the department to consider that,

14   because there's a lot of -- obviously, as

15   you're aware, there are a number of groups

16   that have been very involved, they've done a

17   good job of notifying the public of what's

18   going on.    But I still think many -- you

19   know, as we've gone through the rate

20   proceedings and stuff like that in the past,

21   didn't necessarily -- weren't necessarily

22   aware of what was going on and felt like they

23   missed an opportunity for public comment.

24         So thank you for that.
                                                       337

 1            PSC CHAIR RHODES:   Thank you for the

 2   reminder, yeah.

 3            ASSEMBLYMAN RA:   One other question I

 4   had.     The provisions regarding 5G and the

 5   siting or the permitting process, really --

 6   any thoughts on how does this look in other

 7   states?     Have other states done this to

 8   streamline this process?     Has it cut out the

 9   opportunity locally for input and

10   participation in siting of these facilities?

11            PSC CHAIR RHODES:   So the department

12   pays attention to where its jurisdiction

13   goes, which is really related to the assets

14   owned by the local utilities, telephone and

15   power.    And think of a pole, and you've

16   pretty much got it right.

17            ASSEMBLYMAN RA:   Sure.

18            PSC CHAIR RHODES:   And we have

19   implemented a set of practices that are at --

20   kind of leading edge nationally in terms of

21   speeding the process, more definite cost

22   estimates, time certain for simple

23   attachments of the small cells to the tower.

24            We don't reach into where the
                                                        338

 1   structures are municipally owned; that's

 2   something where we don't go.     But we could

 3   work with a municipal that's interested in

 4   it.   And we can certainly -- if your question

 5   is about kind of talking about when 5G will

 6   get to which zip code, we can engage with you

 7   on that.

 8            ASSEMBLYMAN RA:   No, it's more so that

 9   I have many villages, towns who have I think

10   taken a very different approach with the

11   companies into how they've worked with them

12   in addressing constituent concerns and

13   things.

14            PSC CHAIR RHODES:   Can we engage with

15   you on that?

16            ASSEMBLYMAN RA:   Yes, that would be

17   great.    Thank you.

18            CHAIRWOMAN KRUEGER:   Thank you.

19            Senator Ortt.

20            SENATOR ORTT:   Good afternoon to you

21   both.

22            I think this is more directed towards

23   you, Mr. Rhodes, but obviously either one can

24   jump in.    I have two questions.   The first
                                                     339

 1   revolves around Article X.

 2         As I'm sure you're both aware, there

 3   have been more projects -- which is by design

 4   with the Governor's energy policy and the

 5   policies of this administration -- to drive

 6   more renewable projects, and as a result more

 7   projects in the Article X pipeline.   To my

 8   knowledge, though, the intervenor funds,

 9   which are set aside -- I think it's 350 per

10   megawatt -- I don't believe that number has

11   gone up, meaning the amount of money set

12   aside for those funds has not increased, even

13   though the projects, the number of projects

14   where you would have to dip into your

15   intervenor funds, could be increasing.

16         Is there any change in this year's --

17   in the Governor's budget proposed to the

18   intervenor funds?

19         NYSERDA PRESIDENT BARTON:    So thank

20   you for raising that issue.   And, you know,

21   as has been discussed, the Governor's made

22   clear there's a number of things that need to

23   be fixed about that process, and that's the

24   proposal that we will anticipate to come.
                                                          340

 1            I think questions like the ones you're

 2   asking are ones that we'd certainly be

 3   willing to follow up with you and understand,

 4   you know, how that works in terms of --

 5   particularly if you've seen certain

 6   communities that have not been able to get

 7   the funds that they need to participate.         I

 8   think it's a good time to put a lot of

 9   different solutions on the table, and so be

10   happy to follow up with you on that.

11            SENATOR ORTT:   Thank you.   That would

12   be great.

13            Because there are -- I have a number

14   of these projects that are being proposed,

15   and there is one community specifically I've

16   already spoken to that those funds have been

17   exhausted.    Or, you know, that that was

18   their -- what they were told, so -- and we

19   can follow up, you know, through my office

20   directly as far as the specifics on that,

21   but --

22            NYSERDA PRESIDENT BARTON:    We'll do

23   that, yes.

24            SENATOR ORTT:   That would be great.
                                                     341

 1         And then the other question I had, the

 2   Climate Leadership and Community Protection

 3   Act does not define nuclear energy as a

 4   renewable source.   Which means that under

 5   that act, nuclear would be, you know, removed

 6   from the New York energy portfolio going

 7   forward.

 8         I guess my question is -- and I know

 9   this question has been asked in regard to

10   other forms of energy.   But what -- without

11   nuclear in the portfolio, what is the amount

12   of solar or wind or other types of renewable

13   that we would need to replace, you know, that

14   source of energy?   And what do we lose from

15   the grid -- you know, how much does nuclear

16   contribute today, and how much -- I guess how

17   much do we lose and then how many other types

18   of -- you know, whether it's wind or solar --

19   will be needed to replace that loss of

20   energy?

21         NYSERDA PRESIDENT BARTON:   So thank

22   you for raising an important issue about how

23   do we -- how do we go about the important

24   business of actually hitting these targets.
                                                      342

 1   They are very ambitious.   And, you know, we

 2   certainly have given a lot of thought to

 3   that.

 4           And I want to also highlight that the

 5   law directs the Public Service Commission to

 6   undertake proceedings to look at how do we

 7   meet these targets, 70 percent renewable

 8   energy by 2030.    And I would want to draw a

 9   distinction where the law also requires a

10   hundred percent zero emissions energy by

11   2040.   Which I think that's, you know, to the

12   heart of the question you're asking about the

13   role of nuclear.

14           And, you know, we do anticipate that

15   NYSERDA will be bringing, you know, these

16   matters to the Public Service Commission, as

17   directed under the law, to make these, you

18   know, very specific types of determinations

19   about what do we anticipate for the role of

20   various resources.

21           I want to also point out that as I

22   think you're probably aware, NYSERDA

23   currently administers the state Zero Emission

24   Credit program, which has long recognized
                                                      343

 1   nuclear as a source of zero emissions

 2   electricity and in recognition of the

 3   important contribution to the state's overall

 4   portfolio.

 5         When we look ahead to those numbers,

 6   you know, we do see that, you know, we I

 7   think are blessed as a state to have a

 8   significant head start on zero emissions

 9   energy.    We have, in addition to the nuclear

10   fleet, a significant installed base of

11   hydroelectricity, and we have recently

12   embarked in the last few years on, again,

13   what I think is an unprecedented and

14   unmatched nationally campaign to spur the

15   development of new renewable energy.

16         We will need all of those resources

17   available over the long term in order to hit

18   these targets that are called out in the act.

19         SENATOR ORTT:    Thank you very much,

20   Commissioner.

21         CHAIRWOMAN KRUEGER:     Thank you.

22         Assembly.

23         ASSEMBLYMAN CUSICK:     Assemblymember

24   Carroll.
                                                      344

 1            ASSEMBLYMAN CARROLL:   Thank you,

 2   Chair.

 3            Good afternoon.   Following up on the

 4   Senator's question.    So last year the

 5   Governor signed the CLCPA, and in that of

 6   course there is the benchmark to get

 7   70 percent of our energy from renewable

 8   sources by 2030.

 9            If we exclude hydro, how much energy

10   are we currently getting from wind and solar?

11            PSC CHAIR RHODES:   About four and a

12   half.

13            ASSEMBLYMAN CARROLL:   And that's our

14   only renewable source, is that correct, if

15   you exclude hydro?

16            PSC CHAIR RHODES:   That's generating

17   as of today, that's right.

18            ASSEMBLYMAN CARROLL:   So what do we

19   have to do in the next 10 years to actually

20   hit 70 percent if we're not going to build

21   any more hydroelectric dams because they

22   destroy rivers, if we're not going to build

23   any more nuclear power plants because they're

24   too expensive, and only 4 percent of our
                                                       345

 1   energy currently comes from wind and solar?

 2           NYSERDA PRESIDENT BARTON:   John?

 3           PSC CHAIR RHODES:   We can both answer.

 4           The quick answer is we are on the

 5   ramp -- sorry, NYSERDA is on the ramp to

 6   building the level of renewables that we

 7   need.   Alicia can take you through the track

 8   record of the last three years of

 9   solicitations and how they are building to

10   it.

11           And I will just go on the record as

12   touting the virtues of energy efficiency in

13   terms of bringing -- you know, bringing the

14   amount of electricity that we need down.    The

15   new Efficiency NY order that we did in

16   January calls for a 3 percent annual

17   reduction, which is a meaningful bringing in

18   of the targets.

19           So this is doable and --

20           ASSEMBLYMAN CARROLL:   So what are the

21   benchmarks?   So let's say -- let's pretend we

22   reduce consumption by 3 percent over 10 years

23   and that saves -- you're saying that would

24   save about 30 percent of our energy costs?
                                                      346

 1   And then what would be the benchmark so every

 2   year when we come to this hearing and we ask

 3   how much more solar and wind have we actually

 4   produced, what are the benchmarks we should

 5   be looking at?

 6         NYSERDA PRESIDENT BARTON:     So I'd say

 7   a couple of things.   And I appreciate the

 8   rigorous focus on how we're doing and how

 9   fast we're going to get there.    It's

10   critically important.   And that's the work

11   that we're doing each and every day at

12   NYSERDA.    And I think we're making very

13   strong progress.   I'll give you a couple of

14   examples.

15         So I know you're thinking about, you

16   know, 2030, 70 percent, how do you hit that.

17   Obviously we are starting from a smaller base

18   of wind and solar, but hydroelectricity will

19   contribute to that 70 percent.

20         In addition --

21         ASSEMBLYMAN CARROLL:    It's about

22   20 percent, right?

23         NYSERDA PRESIDENT BARTON:    No, it's

24   actually -- it's actually more than that.
                                                         347

 1   It's probably about 23.

 2           ASSEMBLYMAN CARROLL:     Twenty-three,

 3   okay.

 4           NYSERDA PRESIDENT BARTON:     And again,

 5   my colleague's comments about energy

 6   efficiency are important.      We do believe that

 7   with energy efficiency efforts we will be

 8   reducing the overall load.

 9           If you look at the procurements --

10           ASSEMBLYMAN CARROLL:     How much will we

11   reduce the overall load?

12           NYSERDA PRESIDENT BARTON:     Well, there

13   are a range of projections for that, for

14   example.   But if we fast-forward from today

15   to that hypothetical 2030 mix, the current

16   generating renewable electricity -- so that's

17   the hydro plus wind and solar and other

18   forms -- we believe that will be at about

19   30 percent.   So again, that's the -- that's

20   how we get from, you know, a little bit less

21   than that today to 30 percent then, because

22   load will be coming in.

23           If you look at the procurements that

24   NYSERDA has --
                                                        348

 1           ASSEMBLYMAN CARROLL:   That's by 2030.

 2           NYSERDA PRESIDENT BARTON:    By 2030.

 3           ASSEMBLYMAN CARROLL:   So you're saying

 4   that we're going to only double the amount of

 5   wind and solar we currently have, if we have

 6   20 --

 7           NYSERDA PRESIDENT BARTON:    No, no, no,

 8   I'm sorry --

 9           ASSEMBLYMAN CARROLL:   No?

10           NYSERDA PRESIDENT BARTON:    Please

11   excuse me, let me correct that if I misspoke.

12   That's only what's existing, those numbers

13   that you were asking about before.

14           In terms of what's in the pipeline and

15   already under development, already under

16   contract to NYSERDA, that is an additional

17   15 percent on top of that 30 percent that I

18   just indicated.   Which means we do have to go

19   out and get another 25 percent in order to

20   hit the 70 percent target.

21           The procurements that we've undertaken

22   are truly historic and we have put under

23   contract --

24           ASSEMBLYMAN CARROLL:   I don't mean to
                                                     349

 1   cut you off, but I have 45 seconds.

 2            So just so I know, currently under

 3   construction -- not in the pipeline, not

 4   permitted, but shovels in the ground, people

 5   working on wind or solar sites today, how

 6   many wind and solar sites that are under

 7   construction right now are over 25 megawatts?

 8            NYSERDA PRESIDENT BARTON:   So there

 9   are two wind farms upstate that have started

10   site preparations, have broken ground in that

11   way and they are under construction.       We

12   anticipate more of those large-scale projects

13   will go to construction later this year.

14            In addition, we --

15            ASSEMBLYMAN CARROLL:   How many

16   megawatts are those two projects?

17            NYSERDA PRESIDENT BARTON:   They are

18   approximately, all together, about 200

19   megawatts.

20            And we also anticipate another

21   approximately 500 megawatts of solar to go

22   forward to construction during the year

23   ahead.    And as we've said already, we are

24   committed as a state to undertaking the
                                                         350

 1   changes needed to make sure we accelerate

 2   those projects through the pipeline to

 3   construction to completion and generation.

 4          ASSEMBLYMAN CARROLL:     Will either of

 5   you be able to get us those benchmark

 6   numbers?

 7          PSC CHAIR RHODES:    Yes.

 8          ASSEMBLYMAN CARROLL:     Okay.   Thank

 9   you.

10          ASSEMBLYMAN CUSICK:     Thank you.   Thank

11   you, Mr. Carroll.

12          CHAIRWOMAN KRUEGER:     Thank you.

13          I'm actually going to take chair

14   privilege to jump in here, because I actually

15   thought that Assemblymember Carroll's

16   questions were really getting to the meat of

17   what I also was interested in.

18          And again, I don't think anybody wants

19   to play gotcha.    We know what we have to do

20   in this state.    Right?   We have to

21   exponentially speed up our movement to

22   renewable energy.    We've mandated it in law,

23   but more relevantly, we all know what the

24   data is if we and everybody else don't
                                                       351

 1   exponentially speed up what we're doing.

 2         So we talked about -- somebody else

 3   raised the question about siting barriers,

 4   and the Governor's budget language allows you

 5   more flexibility to deal with siting power

 6   plants.     Now, I've been here for 18 years,

 7   and most of the problems with siting power

 8   plants is communities didn't want polluting

 9   power plants in their neighborhoods.    So now

10   we're talking about needing to site

11   non-polluting power plants.

12         So do you think there are specific

13   changes we need to make that will actually

14   ensure we can get new renewable energy plants

15   sited and built much faster than our current

16   schedule?

17         NYSERDA PRESIDENT BARTON:     Well, yes.

18   I mean, the Governor has made clear that we

19   have to make a number of changes.    And he has

20   directed us that we need to think big and

21   move fast and really put solutions on the

22   table to make sure that we can follow through

23   on converting, again, the pipeline of

24   renewable energy projects -- which is
                                                       352

 1   extremely large, and there are projects in

 2   development all over the state that have been

 3   awarded contracts to go forward, and now we

 4   need to figure out how to get them through

 5   the siting process to construction.

 6         That's the proposal that will come

 7   forward with additional details.

 8         CHAIRWOMAN KRUEGER:     And siting is not

 9   just about power plants, it's also about a

10   modern energy grid that can ensure that

11   siting -- more likely in upstate New York,

12   where there's more land and more renewable

13   options, but then getting it onto a grid that

14   brings it down to New York City and

15   Long Island where there's fewer giant open

16   fields and spaces to build energy.

17         So are we also moving forward with

18   modernization and expansion of our grid,

19   preparing for transmission of renewable

20   energy from north to south?

21         NYSERDA PRESIDENT BARTON:     Yes,

22   absolutely.

23         PSC CHAIR RHODES:   Yeah.    I mean, the

24   Governor mentioned a couple of things in his
                                                      353

 1   remarks really relating to existing rights of

 2   way, which is really the first place you'd go

 3   look to expand the transmission capacity.

 4   That's also, obviously, a lesser siting

 5   challenge because a lot of the prework has

 6   already been done.   So that's the first place

 7   to go look.

 8         Related to that, there's a set of work

 9   that he's asked us to take on that relates to

10   working with utilities, because not all of

11   the release of renewable energy comes from

12   the bulk transmission, there are lesser

13   levels of the transmission grid that also can

14   be de-bottlenecked, if you will.   And so

15   we're looking at that.   And, you know,

16   that's -- those are the action items that we

17   know right now.

18         NYSERDA PRESIDENT BARTON:    May I just

19   add a brief addendum to also say that while

20   certainly we will need to look at all of

21   those solutions, when we think about, you

22   know, what a -- what this new future grid

23   state looks like with all of this renewable

24   energy and the historic challenges that we
                                                     354

 1   still continue to have and need to tackle

 2   about moving energy upstate to downstate, I

 3   can't help but point out, you know, the

 4   significant solution that offshore wind

 5   provides in bringing a substantial portion of

 6   the potential new electricity load directly

 7   into the downstate load centers, as well as

 8   some of the historic investments we are

 9   making in energy storage projects, which will

10   help really just remake how the grid

11   operates, much more flexibly and much more

12   resiliently, over time.

13         CHAIRWOMAN KRUEGER:   So when utilities

14   decide what they're going to invest in for

15   their infrastructure and to sell us fuel,

16   they look at what's likely to happen in a PSC

17   rate case and how much money they'll be able

18   to charge or get reimbursed back over time.

19         So considering we know we need to

20   charge forward on green energy and walk away

21   from our old failed models, are we ensuring

22   now, through PSC policy, that when somebody

23   comes to you for a rate case involving

24   expenditures on new gas-fired power plants
                                                      355

 1   and infrastructure that a utility rate case

 2   for them won't incentivize them to think, oh,

 3   I can get this money back over 40 years?

 4         Because we don't want them in business

 5   for 40 years with old models of energy, so

 6   why would we lead them to believe that the

 7   Public Service Commission is going to provide

 8   them with the rate increases to pay their

 9   costs over 40 years?   I may have said that

10   question backwards, but I think you

11   understood.

12         PSC CHAIR RHODES:   So on the renewable

13   electricity front, I -- I'll just state that

14   I don't think it's workable for the utilities

15   one by one to identify the grid upgrades that

16   they see that could be good for that

17   renewable energy grid.

18         I think they need to be responding to

19   information that is coming from state

20   agencies, from statewide plans, based on an

21   understanding of where the renewable energy

22   pipeline is and where it's going to be and

23   how it's going to come on-stream.   So we need

24   to lead the utilities in some of their
                                                      356

 1   capital planning around the renewable

 2   electricity.

 3         I'm sorry, the acoustic issues that

 4   you promised showed up, but I believe you

 5   also talked about gas infrastructure and kind

 6   of a 40-year asset life.   That's -- it's hard

 7   to see how that squares with the CLCPA.   And

 8   we are aware of the discrepancy and would

 9   like to work on -- with you on how to deal

10   with that.

11         CHAIRWOMAN KRUEGER:    So you agree that

12   we do have a problem out there to deal with.

13         PSC CHAIR RHODES:    We have work to be

14   done, yes, ma'am.

15         CHAIRWOMAN KRUEGER:    Okay, thank you.

16   I have two minutes left, sorry.

17         Changing to RGGI, so in 2018 the

18   Governor announced amendments to New York's

19   RGGI that would lower and tighten the

20   emissions caps by 2030, eliminate the

21   loophole that allows certain peaking power

22   plants to avoid compliance with RGGI.   New

23   York State has until the end of this year to

24   update RGGI regulations to reflect the 2017
                                                       357

 1   multi-state agreement in order to remain in

 2   the program.

 3           So given all of that, what's the

 4   timeline for us to adopt our new RGGI

 5   regulations?   Will the amended regulations be

 6   aligned and consistent with CLCPA?    And since

 7   NYSERDA has not updated its RGGI regulations

 8   in over a decade, is there a plan to do so

 9   anytime soon, given we have all these other

10   deadlines for RGGI?

11           NYSERDA PRESIDENT BARTON:   Well, yes.

12   We will meet the requirement to meet the

13   plant program revision by the end of the

14   year.   And that will require NYSERDA to

15   update our regulations.   I don't have a

16   specific timeline in terms of a month, but we

17   will -- you know, of when that will go

18   public, but we will -- we are advancing that

19   and we will certainly do it in time to meet

20   the public input requirements and then put

21   the plans in place by the deadline.

22           In addition, yes, the Climate

23   Leadership and Community Protection Act is

24   the law of the land, so the revisions will
                                                        358

 1   certainly need to comport with the

 2   requirements of the CLCPA.

 3          CHAIRWOMAN KRUEGER:    Great.   Thank you

 4   both very much.    And I give it back to the

 5   Assembly.

 6          ASSEMBLYMAN CUSICK:    Assemblymember

 7   Palmesano.

 8          ASSEMBLYMAN PALMESANO:   Yes, thank

 9   you.

10          The first thing -- I had a couple of

11   questions.    The first thing I want to do is I

12   want to comment on something that was brought

13   up; I don't really need you to address it

14   right away.    And then I'll get to the

15   question that I really want to get to.

16          Regarding Article X, in the discussion

17   it was talked -- I know you mentioned,

18   Chairman Rhodes, about wanting to hurry to

19   get these projects moving in the pipeline.     I

20   hope this is not done at the cost of local

21   input and local voices being part of that

22   process, because Article X was to ensure

23   local input as members of that board.

24          Because I'm aware of a number of
                                                       359

 1   examples where -- in my district and around

 2   my district where the local people who were

 3   recommended to our leadership in the Senate

 4   and the Assembly were not appointed to those

 5   boards, were not part of those decisions and

 6   basically removed.   So I hope this going

 7   forward does not take that away, and we hope

 8   we work to ensure there is local

 9   representation and their voices are part of

10   that process because to do so would be an

11   insult and be wrong, especially when all

12   these projects are being built upstate.     And

13   not every community welcomes solar farms and

14   windmills, they can be divisive, and

15   especially when that power is being provided

16   to provide energy downstate.

17         So you don't have to address that

18   right now, I just want to make sure we have

19   improved local input.

20         One thing I wanted to get to is with

21   the PSC.   And I know Part Z expands the PSC's

22   authority to penalize the utility by giving

23   PSC the ability to impose, quote, unquote,

24   other required relief in addition to
                                                      360

 1   financial penalties.   It also removes PSC's

 2   obligation to hold a hearing before the

 3   imposition of a civil penalty, and instead

 4   gives the PSC authority to review and approve

 5   any penalties recommended by the DPS.   So

 6   instead of the PSC holding a hearing and

 7   undertaking the investigatory actions itself,

 8   now DPS performs these duties and makes

 9   recommendations to the PSC.

10         Another area that I have concern about

11   is the removal of the word, quote, unquote,

12   reasonably, in relation to the imposition of

13   financial penalties when PSC determines a gas

14   or electric corporation has failed to

15   reasonably comply with a statute, regulation,

16   or PSC orders.   To me, it seems like that

17   allows no room for flexibility in compliance

18   where it might be needed, especially in the

19   case of a storm or a natural disaster or an

20   act of God.

21         So my question, I'll just wrap it up,

22   what is the rationale for transferring the

23   authority from the PSC to the DPS?   Secondly,

24   what other -- what is meant by "other
                                                      361

 1   required relief" in the form of penalties

 2   compared to the current penalties that are

 3   set forth in Public Service Law 25A?    So who

 4   pays these penalties, and is the scope of

 5   business impacted by that broadened as well?

 6         And then the final question is, what

 7   is the intent and reasons for striking the

 8   word "reasonably" from the statute to take

 9   away that flexibility?

10         PSC CHAIR RHODES:    So the purpose of

11   these changes is really efficacy.   It's not

12   any diminishment of process.    You know,

13   that's a point I made earlier, and I still

14   think it's important.

15         You asked another question, then you

16   asked about reasonably.   But I've lost track

17   of the second --

18         ASSEMBLYMAN PALMESANO:    About other

19   required relief than the penalties.    Because

20   it says now they can impose other required

21   relief in addition to the current penalties

22   that are set forth under Public Service Law.

23         What additional other required relief

24   are we talking about?    More penalties or
                                                       362

 1   fines?    What are we talking about?

 2            PSC CHAIR RHODES:   I believe we're

 3   talking about remedial actions by the utility

 4   in order to -- you know, really more in the

 5   nature of if you had inadequate protocols for

 6   operator qualifications in a gas safety

 7   circumstance, what are you doing to remedy

 8   those?

 9            ASSEMBLYMAN PALMESANO:   Okay.

10            PSC CHAIR RHODES:   But I can get you

11   more detail on it.

12            On the point of "reasonably," a

13   regulated utility has an unambiguous duty to

14   comply with the regulations, particularly as

15   they pertain to, you know, the protection of

16   customer safety.    And that's just a standard

17   that other agencies have, and this is -- this

18   is a removal of unnecessary ambiguity.

19            Finally, the point of who pays, it's

20   the shareholder.    It's not the customer.

21   That's the very essence of an enforcement

22   action or of a penalty action.

23            ASSEMBLYMAN PALMESANO:   Well, I think

24   ultimately the customer does pay.
                                                     363

 1         If you want to talk about paying real

 2   quick, $33 billion Climate Action Plan --

 3   will not that $33 billion be borne by the

 4   taxpayer, the ratepayer, the farmer, the

 5   manufacturer, with the subsidies that are

 6   going to be put in place for the development

 7   of all these new policies and plans?    That

 8   will be borne by the taxpayer and ratepayer

 9   of the state, correct?

10         PSC CHAIR RHODES:   They -- they are

11   investments in a system that's better, and

12   they are investments that take the place of

13   business-as-usual investments.   The status

14   quo is not free.

15         So I just -- I don't agree that the

16   $33 billion is somehow an additional cost on

17   consumers that wouldn't have happened

18   otherwise.   And in fact it's foundational to

19   our policies that we bring in new technology,

20   that we bring in competition and that we

21   bring in other people's money, investors that

22   are besides the utilities, in order to get

23   the resources deployed and the cost down and

24   the speed up.
                                                      364

 1         That's -- that's foundational to what

 2   we're doing.

 3         CHAIRWOMAN KRUEGER:   Thank you.

 4         We're jumping to the Senate.    Senator

 5   Betty Little.

 6         SENATOR LITTLE:   Thank you.    Thank

 7   you, Mr. Chairman.

 8         (Mic problems; off the record.)

 9         SENATOR LITTLE:   Chairman Rhodes,

10   thank you.

11         We're talking about getting all

12   renewables, 70 percent by 2030.   In the

13   North Country we have a lot of wind towers

14   and we have a lot of really big solar

15   projects that are taking place now, but

16   transmission lines we don't have.    And some

17   of that power, to my understanding, is even

18   going to New England -- going east, rather --

19   because there's no way for it to come down.

20         And the Governor mentioned

21   transmission lines in his address.    Is there

22   an actual plan to bring it down on the

23   eastern side and -- from the area where we

24   have these things?
                                                     365

 1         (Pause.)

 2         SENATOR LITTLE:   That sounds like a

 3   no.

 4         PSC CHAIR RHODES:   Alicia's agency and

 5   my agency are working together on a study

 6   that's identifying the needed transmission to

 7   bring the renewable energy generation from

 8   where it is generated to where it's needed to

 9   be.

10         So the plan is in the making.     The

11   study is going to address just those kinds of

12   questions that you're posing to us, which are

13   absolutely appropriate and right.

14         SENATOR LITTLE:    Thank you.   I look

15   forward to working on that.

16         My favorite renewable is hydro, and it

17   doesn't get much respect, truthfully.   And

18   yet it is probably the oldest renewable, the

19   most renewable and cleanest.   And yet we

20   don't offer any incentives to improve these

21   small hydro plants.   I have a number of them

22   in my district, and they could be doing so

23   much more for our area and for the energy

24   that we need.
                                                        366

 1         Do you have a plan for that, or is

 2   there a way to incentivize them to become

 3   more efficient, even, and improve some of

 4   their things, their equipment?

 5         NYSERDA PRESIDENT BARTON:   Yes.     Thank

 6   you for the question, Senator, and thank you

 7   also for your service and your longstanding

 8   support of renewable energy like these

 9   hydroelectric facilities.

10         There's a few things.   One is that

11   through the current NYSERDA solicitations,

12   where hydroelectric facilities want to

13   increase their capacity, they are eligible to

14   participate and we have awarded projects in

15   the past to upgrade hydro facilities to get

16   additional output.

17         Beyond that, and a quite recent

18   development, NYSERDA actually filed a

19   petition at the Public Service Commission

20   today to also look at -- to request that the

21   commission consider a mechanism to allow

22   existing renewables to participate in an

23   auction for contracts, similar to what we

24   have offered for new renewables or so-called
                                                          367

 1   Tier 1 renewables.

 2            So we'd certainly be happy to follow

 3   up with your office and explain the proposal

 4   that we've made, which of course will be

 5   taken under consideration by the Public

 6   Service Commission, and the public will have

 7   an opportunity to weigh in.

 8            And as I said before, I think, you

 9   know, the ambition of the act means we have

10   to look hard at all solutions, and that's

11   what we're committed to doing.

12            SENATOR LITTLE:   Thank you.

13            Just in the past year we had a bill

14   that would have given some incentive for

15   hydro, and yet it was vetoed.    Is there a way

16   or do you have ideas how we could improve on

17   that to make it so that it could become

18   effective?

19            NYSERDA PRESIDENT BARTON:      Yes.   And

20   my apologies, Senator, if I wasn't quite

21   clear.

22            So the bill that you're referring to

23   that was vetoed was sent with a message,

24   actually, for agencies like NYSERDA to
                                                      368

 1   develop other solutions.   And our response to

 2   that was filed today at the Public Service

 3   Commission with this proposal that would

 4   essentially allow for existing projects to

 5   bid into a NYSERDA auction to get a contract.

 6         SENATOR LITTLE:   But I didn't realize

 7   that was a result of the veto.

 8         NYSERDA PRESIDENT BARTON:      It is a

 9   result.

10         SENATOR LITTLE:   Thank you.

11         NYSERDA PRESIDENT BARTON:     And again,

12   I'd be happy to walk you through the

13   proposal.

14         SENATOR LITTLE:   Okay, good.    I just

15   did want to talk to you particularly about a

16   NYSERDA program that helped private ski

17   areas, and they were allowed to buy new

18   equipment, better equipment, more efficient

19   equipment -- used less water, did all kinds

20   of great things.   And thank goodness we did

21   that, with the lack of snow this year, that

22   the ski areas are able to really function.

23   So many of them appreciated that.    And it

24   wasn't an awful lot of money, but I think it
                                                      369

 1   started out at 5 and they ended up spending

 2   more than 5 million because you had so many

 3   applications.

 4         I would just like to see if we could

 5   do that again.

 6         NYSERDA PRESIDENT BARTON:        Well, I

 7   appreciate your positive comments on the

 8   success of that funding program, and of

 9   course it's --

10         SENATOR LITTLE:     It started with John

11   Rhodes, though.    That's why he's smiling.

12         (Laughter.)

13         NYSERDA PRESIDENT BARTON:     I'm sorry,

14   we couldn't hear you --

15         SENATOR LITTLE:     I'm sorry, I said I

16   started that idea with John when he was at

17   NYSERDA, that's why.

18         PSC CHAIR RHODES:    I think it's a

19   great program, but I want you to take all the

20   credit, Senator.

21         (Laughter.)

22         CHAIRWOMAN KRUEGER:     Thank you.

23         SENATOR LITTLE:     Thank you.

24         CHAIRWOMAN KRUEGER:     The Assembly's
                                                        370

 1   done, so Senator Rachel May to close.

 2         SENATOR MAY:     Thank you, Madam Chair,

 3   and thank you both for your testimony.

 4         I apologize I was late coming in.       So

 5   I have three questions; if any of them has

 6   been covered already, just tell me to move

 7   on.

 8         So the first one is about VDER --

 9   Darth Vader -- the value of distributed

10   energy resources that was used to replace net

11   metering.   I understand there were some

12   tweaks to it.    Can you tell me, is net

13   metering going to come back?    What is the

14   status of VDER?

15         PSC CHAIR RHODES:    So what there is

16   now -- and I'm just going to get processy for

17   just a second.    But what there is now is

18   there's a white paper that's out for comment,

19   and it's a proposal that tries to develop

20   next-generation VDER.    The main thing about a

21   white paper is that it's an opportunity for

22   comment, so this is -- this is something

23   that's still in the oven and being baked

24   rather than already baked.
                                                     371

 1         The white paper, which was done

 2   jointly between Alicia's agency and mine,

 3   tried to strike the smartest balance it could

 4   between a couple of objectives.   One is to

 5   make sure that the really welcome increase of

 6   solar, including rooftop solar, didn't create

 7   undue burdens on other households.   And the

 8   other was to make sure that we did not impede

 9   but rather reinforced the momentum in the

10   market for solar.

11         And the proposal that's out there was

12   one that was worked with all parties, and the

13   solar industry backed the issuance of the

14   white paper.   You know, they used -- you

15   know, they kind of commend where we ended up

16   as a proposal.   I don't like to predict the

17   future, but I'm sure they'll have comments in

18   this cycle and suggest some improvements.

19         But this is a balanced, reasonable

20   proposal that moves us towards a more

21   sustainable future for solar, one that I

22   think is going to -- I don't know what the

23   growth has been in the past year, but it's

24   not slowing down.
                                                       372

 1         SENATOR MAY:   Okay.    Thank you.

 2         The second question is about broadband

 3   and the broadband buildout.   I was glad to

 4   see there was money for that in the budget,

 5   has been my understanding.    But is that going

 6   to be done without using satellite access?

 7   Because people are really unhappy with the

 8   satellite internet option.

 9         PSC CHAIR RHODES:    So we understand

10   that the customer read that HughesNet, the

11   satellite solution, is not at the speed,

12   et cetera, of broadband.   You know, the

13   priority is to get some kind of service to

14   everybody but then of course to really keep

15   the whole state moving towards the Governor's

16   vision of high-speed broadband for everybody.

17         So that's -- we'd be happy to engage

18   with you on that.

19         SENATOR MAY:   Great.

20         PSC CHAIR RHODES:    But we're aware --

21   we, together with our colleagues at ESD and

22   the Broadband Program Office, are aware of

23   that issue.

24         SENATOR MAY:   I appreciated your
                                                       373

 1   testimony at our hearing about rural

 2   broadband.

 3            And my last question is about green

 4   jobs.    So we all want to create green jobs,

 5   but what are you doing to steer those jobs

 6   toward people of color, toward communities

 7   that have been hurt by climate change already

 8   or otherwise don't typically get access?

 9            NYSERDA PRESIDENT BARTON:   Yes, thank

10   you for raising such a critically important

11   issue.    And that is a significant priority

12   for our efforts.    I'll say, you know, a

13   couple of things.

14            One is that we are making historic

15   investments in workforce training to allow

16   workers to enter the clean energy industry.

17   Already we have 160,000 workers in that

18   industry in New York State, and it's one of

19   the fastest-growing parts of our state's

20   economy.    That's a bright spot.

21            But as you say, we can't be unaware of

22   the need to be proactive in reaching out to

23   particularly historically disadvantaged

24   communities of many different kinds.    So
                                                          374

 1   through NYSERDA's workforce solicitations, we

 2   do give preference to projects that will

 3   directly support priority populations.     And

 4   that's not only disadvantaged communities and

 5   minorities, but also previously incarcerated

 6   or displaced power plant workers.    There's a

 7   relatively long list of workers that would

 8   fit that definition.

 9         It's -- it's something that we have

10   made a central priority under the Governor's

11   leadership, and we would welcome the

12   opportunity to continue to work with you to

13   make sure we have all the best ideas on how

14   to go about that.

15         SENATOR MAY:     Thank you.   And are you

16   tracking the success of that?   Is that

17   something that's transparent that we can look

18   up or find out about?

19         NYSERDA PRESIDENT BARTON:      Yes, so

20   some of the data is early.    You know, these

21   programs are offered on a rolling basis.       But

22   my understanding is that through, for

23   example, the programs that we'd offered over

24   the last year, which are going to
                                                        375

 1   dramatically ramp up in the next year and the

 2   years after, that we did see relatively good

 3   success.

 4         In one of our programs I believe we

 5   were approaching close to 50 percent of the

 6   applications supporting in some way, shape or

 7   form, you know, these priority populations.

 8         SENATOR MAY:   Terrific.    Thank you.

 9         NYSERDA PRESIDENT BARTON:       I'd be

10   happy to follow up with more information.

11         CHAIRWOMAN KRUEGER:     We would love you

12   to follow up with her afterwards.

13         NYSERDA PRESIDENT BARTON:       Thank you.

14         CHAIRWOMAN KRUEGER:     Senator Seward is

15   going to walk you out and ask you one more

16   question --

17         SENATOR SEWARD:   I'll call your

18   office.

19         (Laughter.)

20         CHAIRWOMAN KRUEGER:     Okay.   We want to

21   thank you for your time here with us this

22   afternoon.

23         NYSERDA PRESIDENT BARTON:       Thank you

24   for everyone's cooperation.
                                                         376

 1            PSC CHAIR RHODES:   Thank you.

 2            CHAIRWOMAN KRUEGER:    Thank you.

 3            And for those of you following along

 4   on the TV Guide, we are now still on page 1,

 5   but we are finished with our government

 6   representatives, which means each person or

 7   group of people will be called down for

 8   five minutes' testimony maximum.       We tend to

 9   keep questions shorter at this time of the

10   evening.

11            And we will call up several so other

12   people can get in line.      So the first up is

13   Alliance for Clean Energy, Anne Reynolds,

14   executive director.

15            But if Peter Iwanowicz from

16   Environmental Advocates wants to get closer

17   to the front so he's ready -- I think he

18   might have his deputy with him.     And then

19   Jessica Mahar from The Nature Conservancy,

20   also to be in the room and ready to move

21   along.

22            And I know everyone has sat here all

23   day, and I appreciate it.      We have too.   And

24   everyone's testimony will go up online.       And
                                                          377

 1   again, we really start to urge you, if you

 2   start to read, I'm going to take the paper

 3   away from you and say do it on your own,

 4   because you can.

 5            So welcome.

 6            MS. REYNOLDS:   Thank you.    Is this on?

 7            Hi.   My name is Anne Reynolds.     I'm

 8   with a group called Alliance for Clean Energy

 9   of New York.    If you're not familiar --

10            CHAIRWOMAN KRUEGER:    Bring the

11   microphone a little closer to your mouth,

12   sorry.    Thanks.

13            MS. REYNOLDS:   How's this?

14            CHAIRWOMAN KRUEGER:    Better.

15            MS. REYNOLDS:    Hello again.     My name

16   is Anne Reynolds.      I'm with the Alliance for

17   Clean Energy of New York.      We are an

18   organization made up of both environmental

19   organizations and companies that are engaged

20   in renewable energy development and energy

21   efficiency in New York State.

22            So we have companies, for example,

23   that own existing hydro or existing wind or

24   are attempting to invest and build projects
                                                     378

 1   in New York, distributed and community-sized

 2   and grid-sized solar, offshore wind and

 3   land-based wind, fuel cells, sustainable

 4   biomass, energy efficiency.

 5         So I really do appreciate the

 6   opportunity to speak to you for five minutes.

 7   And I realized I forgot to start the timer.

 8         So on January 21st the Governor did

 9   his budget speech and started with energy and

10   environment and climate and mentioned

11   something that ACE has been working on, which

12   is the difficulty in the permitting process

13   for renewable energy projects.   And we heard

14   today Commissioner Seggos I believe used the

15   term "The process is broken," which I was

16   heartened to hear because as renewable energy

17   developers, we have been trying to make that

18   point to our partners in state government.

19         We absolutely need to have projects

20   reviewed and permitted faster, and we need to

21   have additional planning and permitting for

22   transmission to move the new clean energy

23   around the state to the places where it's

24   needed.   We really can't, in our view,
                                                     379

 1   achieve the goals of the law that you passed

 2   last year without that happening.

 3          I do note that there were not, as was

 4   said, amendments to Article X or specific

 5   language submitting to the Governor's

 6   Executive Proposal, so we are waiting on the

 7   edge of our seats to see -- and I'm basing

 8   this on a tweet from Rich Azzopardi that

 9   there will be amendments to the law submitted

10   in the 30-day period.

11          So since I don't know what is

12   proposed, it's difficult for me to comment on

13   it.   But I will say simply that if the

14   process is dramatically redesigned, that

15   would be a positive thing if it results in

16   additional projects, but it would be very

17   important not to undermine the projects that

18   have been under development in New York.

19   Some of these companies have spent five, six,

20   seven, eight, nine years and invested

21   millions of dollars in the sites that they've

22   chosen.

23          So we would hope and expect that the

24   process could be improved to speed up those
                                                       380

 1   projects and bring those to fruition.     You

 2   heard from the president of NYSERDA how many

 3   are under contract with NYSERDA now, and

 4   those are the projects that I'm talking

 5   about.    So we would want to keep those moving

 6   even as we get some creative ideas for how we

 7   could get projects certified, permitted,

 8   reviewed faster.

 9            The Governor also described a total

10   five-year commitment to climate change of

11   $33 billion, and that figure as I understand

12   it is a combination of the proposed bond act

13   and previously announced funds.   But many of

14   them are not part of the General Fund, so are

15   off-budget.    But it is still important for us

16   to mention how important they are, how

17   important those programs are.

18            It is, for example, the contracts with

19   NYSERDA, the 20-year contracts with NYSERDA

20   to sell the renewable energy credits that

21   allow projects to get financed and allow

22   projects to get built.   So those programs

23   funded by the RGGI money and through

24   ratepayers through the Green Bank, the Clean
                                                     381

 1   Energy Fund, and the recent energy efficiency

 2   commitments that were made via issuance of

 3   the Public Service Commission order just this

 4   month, are all very important.   They're

 5   programs that ACE supports.   And they're

 6   important pieces of the overall strategy to

 7   reach the greenhouse gas emission goals in

 8   the new law and to transition New York to a

 9   100 percent clean energy future.

10          I want to mention that ACE New York

11   enthusiastically supports the proposal to

12   increase staffing at the Department of

13   Environmental Conservation -- by my reading,

14   at least 47 positions -- to implement the

15   Climate Leadership and Community Protection

16   Act.   We hope that some of those

17   positions are dedicated to processing

18   applications for renewable energy projects.

19   Of course we don't know.   But then even a

20   cursory reading of the law that you all

21   passed last year shows that DEC has a lot of

22   work to do, so we hope that those new

23   positions are supported.

24          (Timeclock sounds.)
                                                       382

 1         CHAIRWOMAN KRUEGER:      And in

 2   closing ...

 3         (Laughter.)

 4         MS. REYNOLDS:    Okay.   So in closing,

 5   I'm happy to talk about specific changes to

 6   Article X, but I know I don't have time.     I

 7   think my main point is there should be some.

 8   And if we are to meet the goals in the

 9   exciting law that you passed last year, we

10   need to build wind and solar projects.

11         CHAIRWOMAN KRUEGER:      Thank you.

12         Any questions?     We've all done our job

13   well here.    Thank you very much.

14         MS. REYNOLDS:    Thank you.

15         CHAIRWOMAN KRUEGER:      Okay, next up.

16         And again, please, everyone, you can

17   reach out to the advocates afterwards and

18   follow up with them.   They, trust me, will be

19   reaching out to us.

20         Peter Iwanowicz, from Environmental

21   Advocates of New York.

22         MR. IWANOWICZ:     So great, so thank you

23   for being here so late into the evening.    And

24   thank you for doing what you do every week.
                                                         383

 1   I'm looking around the dais, and most of you

 2   travel at least two hours every week to get

 3   here and two hours to get back.    So thanks

 4   for your service.    Thanks for what you do for

 5   the people of New York State.

 6           So this year we marked the

 7   50th anniversary of the first Earth Day.      The

 8   people are marching, they're protesting, as

 9   we saw earlier, and they're marching and

10   protesting because the cost of inaction on

11   climate change is enormous.

12           Let me just give you a simple figure.

13   When we look at climate change, the social

14   cost to us here in New York State alone each

15   year is $10.2 billion.   This flows directly

16   from the social cost of climate analysis, and

17   that has actually been around since 2012.      So

18   I know there was talk about it earlier; the

19   social cost of carbon is not a new figure,

20   and for New York State it's $10.2 billion a

21   year.

22           It's staggering when you think of

23   this.   And a good way to address this is a

24   good state budget.   So here's -- really
                                                         384

 1   quickly -- all the things we'd like you to

 2   address in the Executive's proposal, and to

 3   change.

 4            First, we call on the State Budget to

 5   establish a $1 billion climate fund.     And if

 6   you're paying a lot of attention to math,

 7   that's just 10 percent of what our annual

 8   costs are, the social costs of carbon.       This

 9   fund will build the necessary infrastructure

10   for clean energy, it will enhance access to

11   clean transportation, and it would deliver

12   resources to help communities in the state's

13   workforce transition completely off of fossil

14   fuels.

15            We also call on you to reject the

16   Executive proposed transfer of 23 billion in

17   RGGI funds to support general tax credits.

18   Some of these have been around way before

19   RGGI was even conceived or implemented.

20            We also ask you to reject the

21   5 million in additional RGGI funds that are

22   going to support the Environmental Protection

23   Fund.    As Senator Hoylman rightly pointed out

24   earlier, and we agree, this is really robbing
                                                     385

 1   Peter to pay Paul.

 2          And also one thing you can do in this

 3   budget is to end the RGGI raids once and for

 4   all.   We actually call on the Legislature to

 5   include language in the budget that will

 6   direct NYSERDA to amend its RGGI regulations

 7   to align with the equity goals and mandates

 8   of the CLCPA.   We heard from Alicia Barton

 9   that they are heading down that direction;

10   let's mandate it in law.

11          I'm going to move ahead quickly to the

12   environmental bond act, because there are

13   other items in our climate testimony, but in

14   the interests of time, I'm going to focus on

15   the bond act next.

16          So first, it's been nearly a quarter

17   of a century since we did an environmental

18   bond act.   It's time to put one before the

19   voters again.   I actually want to ask you to

20   pull the bond act out of the budget

21   discussions and do it outside.   You did that

22   last year with climate, and it was a good

23   result because you had more time and energy

24   to focus on the bond act, and you should do
                                                      386

 1   that again.   It's important to do a bond act,

 2   but it's not a requirement to do it within

 3   the context of a budget negotiation.

 4         Also a $3 billion bond act should go

 5   for restoring habitat, reducing flood risk

 6   and other key clean water programs.    If you

 7   find that you want to advance a $5 billion

 8   bond act, well, we won't oppose that at

 9   all -- in fact, we encourage you to do it.

10   You could include an additional billion

11   dollars that would go into clean water

12   programs, particularly to fund the

13   replacement of lead water pipes, which is a

14   huge problem for New York.   And you could

15   also spend an additional billion dollars

16   quite simply on electrification for electric

17   vehicles, setting up that publicly charging

18   infrastructure.

19         So there's two key ways to get to a

20   $5 billion bond act after you address the

21   $3 billion one.

22         Clean water programs, as we heard

23   earlier today, there's a huge demand.    And

24   while the $500 million last year was a great
                                                       387

 1   addition, and the $500 million this year is

 2   going to be great, you could literally spend

 3   {snapping fingers} like that a billion

 4   dollars on shovel-ready projects that could

 5   put New Yorkers to work and clean our water.

 6   So we encourage you to do that.

 7         On the issue of solid waste, we

 8   support the Executive's proposal to ban

 9   polystyrene containers in packaging.    And we

10   also urge the Legislature to consider broader

11   policies that will expand efforts to reduce

12   plastic pollution such as a ban on other

13   single-use plastics.

14         We applaud the Governor's inclusion of

15   stewardship programs for carpet and

16   mattresses.   But at least when you look at

17   these stewardship programs, we encourage you

18   to reduce the front-end toxicity.   Make

19   products that are cleaner; it will make them

20   easier to recycle.   So reduce the toxins in

21   mattresses and carpets to begin with.

22         And then finally let me close by just

23   reiterating our position on the EPF.    We urge

24   you to support the Governor's proposed
                                                       388

 1   $300 million level, but urge you to look

 2   forward to expanding that, so in five years

 3   from now we have a $500 million EPF.

 4         Please reject the staffing offloads

 5   into the APPF.   That doesn't belong in a

 6   capital program.   That's what operation

 7   budgets are for.   And also reject the RGGI

 8   transfer of $5 million.    We're not expanding

 9   the EPF; we shouldn't nickel-and-dime other

10   important programs.

11         And finally, the DEC needs more staff.

12   I think that's plain.     You know it, I know

13   it, the commissioner probably knows it but he

14   can't say so.

15         CHAIRWOMAN KRUEGER:      Thank you.   And

16   thank you for staying within the five

17   minutes.

18         Any questions?    Thank you very much.

19         MR. IWANOWICZ:    My pleasure.

20         CHAIRWOMAN KRUEGER:      Next we have

21   Jessica Ottney Mahar from The Nature

22   Conservation.

23         And up on deck, if they want to come

24   closer to the front, League of Conservation
                                                        389

 1   Voters and Resource Recycling Systems.

 2           MS. OTTNEY MAHAR:   Thank you,

 3   everyone, for the time here today.     I'm

 4   Jessica Ottney Mahar.   I'm the director of

 5   policy and strategy with The Nature

 6   Conservancy here in New York.

 7           And I want to start out by saying

 8   thank you because last year was a really

 9   historic year for our environment.     We were

10   thrilled to work with you on so many

11   things -- thank you -- including the passage

12   of nation-leading climate legislation.       And

13   we're ready to get back to work again this

14   year.

15           I sent in a really long written

16   testimony which I'm not even going to attempt

17   to read from, but happy to talk to you in

18   more detail later on.

19           I wanted to start out with the

20   Environmental Protection Fund.    We have been

21   grateful for bipartisan legislative support

22   for this program for the entire time it's

23   existed, and we really appreciate how much

24   legislators support all of the different
                                                       390

 1   programs within the EPF.

 2            Last year you all worked really hard

 3   to fight back against a proposal to offload

 4   agency staff costs into the EPF.

 5   Unfortunately, that fight is going to have to

 6   happen again.    The Governor's budget proposes

 7   unlimited use of the EPF for agency staff

 8   costs.    Despite what has been said today,

 9   there's absolutely no limitation on the

10   amount of money that could be removed from

11   capital funds and projects in communities to

12   pay for agency staffing.

13            Now, The Nature Conservancy really

14   supports the addition of staffing at our

15   environmental agencies, but we shouldn't have

16   to take money out of the EPF and open the EPF

17   to unlimited spending for that purpose in

18   order to refill our agency staffing levels.

19   So we ask that you once again push back and

20   oppose that proposal.

21            We do support the $300 million

22   appropriation again this year.     That's a

23   historic high for the EPF.    And again, we

24   really support the Legislature's support for
                                                        391

 1   that and want to make sure that the funding

 2   continues to grow in the future.

 3          As Peter mentioned, there's a proposed

 4   transfer of $5 million from RGGI into the

 5   EPF.   We oppose that.   And we're also

 6   concerned at The Nature Conservancy about

 7   cuts to the Land Conservation Program, which

 8   used to be a $60 million program in New York

 9   State and is now being cut down to 30, just

10   half of what it once was when the EPF was

11   $255 million.    So we have concerns over that

12   cut as well as the cut to the Zoos, Botanical

13   Gardens and Aquaria program.

14          And I wanted to voice some support for

15   a new program within the land conservation

16   line, which is for land trusts to work with

17   private forest landowners to do permanent

18   protection through conservation easements on

19   their land.     The Nature Conservancy is really

20   supportive of land trusts having those grants

21   to support that work.    They're on the ground

22   in communities working with landowners, and

23   that will be permanent forest conservation,

24   which is really important going forward.
                                                     392

 1         I also wanted to just call your

 2   attention to the New York Protected Areas

 3   Database, which is a really geeky thing that

 4   we need to make sure things like renewable

 5   energy siting happen right.    That's in the

 6   state land stewardship line.

 7         And then I also want to talk about the

 8   bond act, which The Nature Conservancy

 9   strongly supports.   It's been almost a

10   quarter-century since we had one.   We really

11   agree with the intent around a bond act to

12   support issues like flooding and flood

13   prevention in our communities and protecting

14   natural resources that our communities and

15   future generations depend on.

16         So really appreciate the fact that

17   we're talking about this finally, the first

18   time since 1996.   And we've been working on

19   these in other states around the country, so

20   we believe the voter support will be there,

21   based both on public opinion research and our

22   experience working with voters.

23         We would just ask that you think about

24   framing it in a way that will compel voters
                                                      393

 1   and that will be understandable to voters.

 2   In particular, the ballot question that

 3   voters are going to have to look at is going

 4   to be very important.    So as you write that,

 5   which will be legislated, we really need to

 6   be careful about how that's worded.

 7         And then lastly, I'll just say that

 8   The Nature Conservancy is excited about the

 9   proposal to further protect our wetlands in

10   New York State.    We're concerned about the

11   "Waters of the U.S." ruling at the federal

12   level and the implications it has for clean

13   water and habitat.   And we believe that the

14   proposal in the budget, while it's different

15   than some of the legislation that has been

16   proposed in the past, deserves a serious look

17   and we hope that you give it consideration

18   and conversation.

19         And with that, I'll leave 30 seconds

20   on the clock and open it up to questions.

21         CHAIRWOMAN KRUEGER:     Great.

22         Senate?     Assembly.

23         ASSEMBLYMAN CUSICK:     Yes.

24   Assemblymember Glick.
                                                      394

 1         ASSEMBLYWOMAN GLICK:    Thank you very

 2   much for your testimony.   I have one

 3   question.

 4         In how many locales are you working

 5   with landowners, property owners who are

 6   facing flooding?   I see that you reference

 7   Mastic Beach, but clearly there are lots of

 8   places on the South Shore of Staten Island

 9   and obviously other places.   So in how many

10   locales are you actually working?

11         MS. OTTNEY MAHAR:    So yeah, thank you

12   for that question.

13         So we have teams working on the ground

14   in a number of places, both actively and in

15   the past, and it's in different functions.

16   So in places like Mastic Beach we've done

17   work where we've actually worked with willing

18   sellers to buy out properties and return

19   those properties to a functioning wetland,

20   for example.   We're doing some work like that

21   in Staten Island right now as well.

22         And then in other areas, like on the

23   shoreline of Lake Ontario or in the

24   Southern Tier -- and in the Southern Tier, in
                                                        395

 1   fact, we did so with support through the

 2   Environmental Protection Fund -- we've been

 3   working with communities to do planning so

 4   that they can think about the problems that

 5   are causing their flooding, especially at a

 6   regional level beyond their own municipal

 7   borders, and then work together on plans and

 8   actually come up with lists of projects that

 9   might be fundable through something like a

10   bond act.

11         So we've had a number of projects in

12   different places throughout the state, and

13   it's kind of ebbed and flowed.   In the

14   Adirondacks we're working with communities on

15   replacing culverts.   There are a lot of

16   culverts that blew out during Hurricane Irene

17   and really destroyed the only roadway that

18   got people from one place to another.     It was

19   a serious public health and safety concern.

20         What we've learned in a lot of the

21   state is a lot of these culverts, where they

22   create pinch points and blow out during

23   storms, they're also ripe for opening up

24   hundreds of miles of fish habitat, which is
                                                       396

 1   great for the fish and great for the

 2   fishermen.

 3            So we've been working in communities

 4   in the Adirondacks and in the Hudson Valley

 5   on that, and we're now prioritizing culverts

 6   that need to be replaced in places like Long

 7   Island.    And then our partners, like soil and

 8   water conservation districts, are doing

 9   similar prioritizations in other areas of the

10   state.

11            ASSEMBLYWOMAN GLICK:   Thanks very

12   much.

13            MS. OTTNEY MAHAR:   I'd be happy to

14   follow up with your office as well if you

15   have more questions on that.

16            CHAIRWOMAN KRUEGER:    Great.   Thank

17   you.    And we also have a question by

18   Senator May.

19            SENATOR MAY:   Thank you.   Yeah, that

20   pretty much answered my question, but I was

21   wondering, just to extend it, have you done

22   watershed-level planning or facilitated,

23   helped groups get started to do that?

24            MS. OTTNEY MAHAR:   Yeah, so we had a
                                                      397

 1   program called Flood Smart Communities, and

 2   the goal of that program -- and I talk a

 3   little bit about it in the testimony.     And,

 4   Senator, I can come in and give you a fuller

 5   briefing.   One of the examples of this was

 6   along the shoreline of Lake Ontario in

 7   Greece, Parma and Hilton, and we did a second

 8   phase with support from the EPF which

 9   Senator O'Mara secured several years ago in

10   Southern Tier communities.

11         So kind of watershed-level planning in

12   these areas that are flooding.   Again,

13   thinking about both the problems and the

14   solutions and how strategies both within and

15   beyond the municipal boundaries could

16   contribute to solving those problems.

17         And, you know, the issue with flooding

18   is it's really -- the cause is different in

19   all these areas.   And so really taking a look

20   and figuring out at the community level what

21   both the problem is and kind of what that

22   community, what they want their future to

23   look like is really important.

24         And I think as we think about the bond
                                                      398

 1   act, we also have to be thinking about how to

 2   leverage programs in the EPF and other

 3   programs that exist to ensure that

 4   communities are able to do that planning

 5   prior to just throwing projects out there, so

 6   that we really understand what the impact of

 7   the projects that we'll be funding will be

 8   down the road.

 9         SENATOR MAY:      One thing I've heard

10   about is kind of the shift to larger-scale

11   corn farming has been one of the real

12   problems with causing more erosion and more

13   runoff from the land.    And I don't know if

14   you've worked with farmers at all.

15         MS. OTTNEY MAHAR:     We haven't worked

16   on corn, but we are working in the

17   Finger Lakes right now on some ag projects

18   with farmers in reducing nutrients and

19   thinking how, you know, we can work with them

20   on projects that they support and also can

21   reduce some of the nutrient inputs into the

22   Finger Lakes.

23         SENATOR MAY:   Great.     Thank you.

24         CHAIRWOMAN KRUEGER:      Okay, thank you
                                                        399

 1   very much.   Appreciate it.

 2         MS. OTTNEY MAHAR:     Thank you.

 3         CHAIRWOMAN KRUEGER:      Our next

 4   testifier, New York League of Conservation

 5   Voters, followed by Resource Recycling

 6   Systems, followed by Center for Creative Land

 7   Recycling.

 8         MR. McCLELLAN:      Thank you.   And thank

 9   you to all the members who are still here.

10         My name is Pat McClellan, and I'm the

11   state policy director for the New York League

12   of Conservation Voters.

13         We strongly support the $3 billion

14   environmental bond act.    Investments in

15   nature-based resiliency serve a dual purpose

16   of mitigating the impact of climate change on

17   our communities while also protecting

18   wildlife and natural spaces.

19         It's been almost 25 years since the

20   last environmental bond act, and the focus on

21   flood protection and climate mitigation here

22   is clear value for money because every

23   one dollar spent on mitigation saves the

24   state about $6 down the road in responding to
                                                     400

 1   floods and other natural disasters.

 2         We do hope that as the budget is

 3   discussed and developed over the next two

 4   months that the Legislature and the Governor

 5   can work together on some more specific

 6   language and dollar figures for what the bond

 7   act can go towards.

 8         While it's not directly connected to

 9   the bond act, we do also support Part TT of

10   the TED Article VII legislation relating to

11   wetlands.   This would eliminate some costly

12   and outdated red tape that prevents DEC from

13   protecting vulnerable wetlands.   If we're

14   going to spend $3 billion on natural

15   restoration projects through this bond act,

16   including wetlands restoration, we really

17   should make sure that DEC has the appropriate

18   tools that they need to protect the wetlands

19   that we already have before they're

20   endangered in the first place.

21         On funding, I'll just echo what

22   Jessica and Peter said about the EPF, that

23   we're thrilled that it's at $300 million for

24   a fifth year in a year, but that using any
                                                     401

 1   portion of the EPF for staffing needs is not

 2   an appropriate use of a capital fund.

 3          And we recognize that it's a tight

 4   year in the budget, but we do think that the

 5   state should start moving in the direction

 6   of, over the next five years, gradually

 7   increasing the EPF to $500 million in size.

 8          Outside of the EPF, and hopefully paid

 9   for out of the General Fund, we are thrilled

10   that the Governor has proposed new staff for

11   DEC and for the Parks Department.   It's long

12   overdue.

13          We're also pleased that the Executive

14   Budget is continuing to allocate more funding

15   for clean water, and we support Part KK of

16   the Article VII legislation which would help

17   communities that are receiving zero interest

18   loans have a longer payback period so that

19   it's easier to access.

20           On recycling and waste issues, there

21   are a number of things we wanted to weigh in

22   on.   First, we need to get rid of materials

23   that can't be recycled or responsibly

24   disposed of.   That's why we supported the
                                                       402

 1   plastic bag ban last year, and that's why we

 2   support the proposal to ban polystyrene foam

 3   containers and packaging this year.

 4         But we also need to shift

 5   responsibility for recycling and safe

 6   disposal of materials that are difficult and

 7   expensive from local governments and

 8   taxpayers to the manufacturers of those

 9   products.    So we support the proposals in the

10   Executive Budget to create extended producer

11   responsibility laws that cover mattresses and

12   carpeting.

13         We're happy that there's also a

14   proposal to charge DEC with identifying other

15   product types that could be covered by EPR,

16   but the Legislature shouldn't wait for that

17   process to take place.   There are actions

18   that can be taken this year, including EPR

19   legislation for packaging, for instance.     So

20   we'd urge you to move forward with that even

21   as we wait for DEC to hopefully identify some

22   other material types where it makes sense to

23   apply this model.

24         And finally, we need to make our
                                                      403

 1   existing recycling programs work better,

 2   which in part means developing markets that

 3   are worth it for local governments to

 4   participate in.

 5         You know, I'm sure you know that many

 6   municipalities in the state are considering

 7   dropping glass from their recycling programs

 8   entirely because it's become so expensive.

 9   So we are pleased that the Governor announced

10   in the State of the State a Center of Glass

11   Innovation to research some new ways to

12   reduce and recycle glass.

13         But we think that the state should

14   also move forward with a minimum

15   post-recycled content requirement for new

16   packaging.   And that is similar to a proposal

17   that was put forward last year as part of an

18   Expanded Bottle Bill proposal by

19   Senator Kaminsky and Assemblymember

20   Englebright.   We think that that

21   post-recycled content requirement can be

22   pursued independently.

23         We're enthusiastic about potential

24   reforms to Article X.    As others have said,
                                                        404

 1   if the current process is not working, it's

 2   not going to let us get where we want to go

 3   on energy.    So we eagerly await further

 4   details of what the Governor is proposing.

 5            And then, finally, I wanted to touch

 6   on transportation.    There's a lot of

 7   low-hanging fruit here that the state should

 8   pursue.    So legalizing e-bikes and

 9   e-scooters, which, you know, it seems like

10   everyone is finally in agreement on now.

11            And there are two other programs to

12   raise revenue to decarbonize transportation

13   that the state should pursue.     One is the

14   Transportation and Climate Initiative.       The

15   other is a low carbon fuel standard, which I

16   would be happy to discuss in greater detail,

17   and it is discussed in greater detail in my

18   written testimony that I submitted.

19            Thank you.

20            CHAIRWOMAN KRUEGER:    Thank you.

21            Senate, any questions?   Assembly?

22            Harvey Epstein.

23            ASSEMBLYMAN EPSTEIN:   Sorry for my

24   voice.    But thank you for your testimony.
                                                      405

 1         I want to know more about -- I know,

 2   I'm sorry.    Just where are you on the

 3   composting?    It seems like we haven't moved

 4   forward enough on composing statewide.    And

 5   what do you think we need to do to get

 6   municipalities -- like New York City, we're

 7   moving forward, but the rest of the state is

 8   really far behind in getting a real

 9   composting program off the ground.    And what

10   do you think about how we do that in a more

11   productive way?

12         MR. McCLELLAN:    Yeah, I think the one

13   thing that I would like to see DEC kind of

14   report out on -- or actually I believe it's

15   NYSERDA who had conducted a study on this in

16   2017 in advance of the first time that that

17   food mandate had been proposed -- is looking

18   at what the capacity in the state is, how

19   many anaerobic digesters and other facilities

20   that are capable of accepting organic waste

21   are there really.   Because that's the big

22   hindrance to doing mandates.

23         And while it's great that, you know,

24   so many individuals and individual nonprofits
                                                      406

 1   in this state are committed to recycling

 2   their food waste, we're not really going to

 3   move the needle until we have curbside

 4   collection in more municipalities and

 5   mandates covering more institutional

 6   generators of waste.

 7            But you can't really put those

 8   mandates in place and you can't really do

 9   curbside pickup unless the capacity is there.

10   And so the state needs to be reporting

11   regularly on whether or not that capacity is

12   there.

13            And, you know, I think that a

14   low-carbon fuel standard as well, which would

15   basically require that the dirtiest fuel

16   importers in the state -- so gasoline and

17   diesel, basically -- to purchase credits from

18   clean-fuel providers.    That would include

19   renewable biofuels, which is one of the

20   possible uses of an anaerobic digester.

21            And we think that a program like that

22   would also help to spur the development of

23   more digesters in the state.    Which, by the

24   way, on a kind of side note, would have a lot
                                                     407

 1   of benefit for dairy farmers.

 2         ASSEMBLYMAN EPSTEIN:    And then just

 3   one other question around -- you know, with

 4   diesel and car fumes and trying to move to

 5   electric vehicles, it seems like we are

 6   starting or seem to be behind in our state

 7   fleet of vehicles as well as trying to get

 8   people privately to be able to get

 9   rechargeable cars -- there are tax credits in

10   place, but not publicly available charging

11   stations.   How do we move forward on that?

12         MR. McCLELLAN:   Yeah, I mean -- so I

13   think that the question of getting it to

14   scale is one of funding.   You know, I do

15   think that private markets are beginning to

16   step in, but certainly not at the speed or

17   scale that they need to to hit the aggressive

18   targets that we need to.

19         So again, the Transportation and

20   Climate Initiative, which would be an

21   interstate compact that New York has actively

22   participated in conversations on but has not

23   committed to joining -- that could raise

24   potentially over a billion dollars a year for
                                                        408

 1   clean transportation projects, including mass

 2   transit and electric vehicle charging

 3   stations.

 4         And then similarly, we think it would

 5   be complementary to also pursue an LCFS, in

 6   which case, you know, one of the eligible

 7   participants in the market that would sell

 8   credits to dirty fuel providers would be

 9   electric charging installers.      So that, you

10   know, functionally Exxon is paying for the

11   installation of electric vehicle charging

12   stations.

13         CHAIRWOMAN KRUEGER:      Okay.   Thank you

14   very much for your testimony tonight.

15         MR. McCLELLAN:     Thank you.

16         CHAIRWOMAN KRUEGER:      Next up we have

17   Resource Recycling Systems, followed by

18   Center for Creative Land Recycling, followed

19   by Citizens Campaign for the Environment.

20         And again, I think some people got on

21   the train already.    We'll see.

22         Hi.

23         MS. DIMINO:     Hi.   My name is Resa

24   Dimino.     I'm with Resource Recycling Systems.
                                                      409

 1   We are a mission-driven recycling

 2   consultancy.   And I'm here today on behalf of

 3   a consortium of companies that collect,

 4   process and recycle carpet.

 5         We're very pleased to see the

 6   Governor's Executive Budget including

 7   language to create an extended producer

 8   responsibility program for carpet, and we're

 9   here to support that.

10         According to the DEC, less than

11   1 percent of the carpet in New York State is

12   recycled every year.    And sending all that

13   carpet to landfill or waste-to-energy

14   facilities is not only a waste of money, in

15   that local governments and businesses are

16   paying to dispose of it, but also squanders

17   valuable natural resources.

18         Carpet recycling offers a good

19   opportunity to reduce greenhouse gases,

20   create jobs, and keep materials circulating

21   in the economy to improve sustainability.

22   Unfortunately, though, the economics of

23   carpet recycling are not self-sustaining, so

24   in order for carpet recycling to work in
                                                     410

 1   New York, we need EPR policy for financing.

 2         EPR programs require carpet producers

 3   to pay the cost of collection and processing

 4   of carpeting.   It's sort of like the

 5   "polluter pays" principle applied to carpet;

 6   the producers pay those costs.   Those costs

 7   essentially get passed on to consumers, so

 8   the people who use carpet ultimately pay for

 9   its recovery at the end of its life.

10         Despite the fact that carpet has some

11   value and there's real environmental benefit

12   in recovering it, nationally only about

13   5 percent is recovered -- and as I said, in

14   New York, only 1 percent.   The only place

15   that's got a reasonably decent carpet

16   recycling rate is California, where they have

17   California EPR legislation.   Their rate has

18   gone up to about 24 percent and is still

19   moving up, and there's a demand for all the

20   carpet that's being collected and processed

21   in that program.

22         We estimate that within about

23   four years, New York could get to 25 percent

24   carpet recycling.   And if we did that, we
                                                      411

 1   would be able to reduce greenhouse gas

 2   emissions by 33,000 metric tons of carbon

 3   equivalent, create about a thousand jobs, and

 4   save more than $4 million a year in waste

 5   disposal costs.   And we think those benefits

 6   will only go up over time.

 7         It's important to understand why we

 8   can't recycle carpet in New York today and

 9   why we need this EPR policy.   Even though

10   there's a demand for the carpet that's

11   collected -- more than 90 percent of the

12   materials in carpet are currently recyclable

13   and have end markets, but the prices paid for

14   that material aren't enough to cover the cost

15   of collection and processing and

16   transportation.

17         And so these materials have to compete

18   with virgin plastics, which are very low

19   priced, and other commodities that are very

20   inexpensive.   The incentive that EPR provides

21   levels the playing field so that we can

22   offset the higher processing costs that these

23   carpet recyclers face and allow them to

24   compete for markets and keep this material in
                                                         412

 1   circulation.

 2           The carpet recyclers are private

 3   businesses.    They'd love a market-based

 4   solution.    Unfortunately, there's none on the

 5   horizon.    Several of the carpet companies are

 6   ready to come to New York, they're ready to

 7   build facilities here, create jobs here, and

 8   help the state meet greenhouse gas reduction

 9   and waste reduction goals.      And we hope that

10   you will work with us to take advantage of

11   the policy opportunity here to bring these

12   businesses to New York State.      It's really a

13   win/win.

14           CHAIRWOMAN KRUEGER:     Thank you.

15           Senate?   Assembly?    We appreciate your

16   testimony.

17           MS. DIMINO:   Thank you.

18           CHAIRWOMAN KRUEGER:     And you'll be the

19   first person to testify on carpet recycling

20   ever.   Thank you.

21           (Laughter.)

22           CHAIRWOMAN KRUEGER:     Center for

23   Creative Land Recycling.      Hello, Jeff Jones.

24           Next up, for people tracking, Citizens
                                                      413

 1   Campaign for the Environment.   And then we

 2   have the Sierra Club and the New York

 3   Farm Bureau, if people want to get closer to

 4   the front.

 5         MR. JONES:    Good evening,

 6   Senator Krueger and other Senators and

 7   Assemblymembers.   My name is Jeff Jones.

 8         Jean Hamerman, the director of

 9   strategic initiatives for the Center for

10   Creative Land Recycling, could not be here

11   today, and I am happy to step in.

12         I appreciate very much, as someone who

13   has spent the day with you, your endurance

14   and your commitment.   And appreciate this

15   opportunity to say a few words.

16         I may be about to set a record.     We

17   have been talking all day about very big

18   issues, billions of dollars -- at least

19   hundreds of millions of dollars -- and I ask

20   to speak to you today about $2 million.     So

21   I'll be quick.

22         The Brownfield Opportunity Areas

23   program is one line in the Environmental

24   Protection Fund.   It is proposed this year at
                                                      414

 1   $2 million, which is where it has spent most

 2   of the last six or seven years, which is a

 3   reasonable amount for the -- we call it BOA,

 4   the Brownfield Opportunity Areas program.

 5           I just want to call it to your

 6   attention because it's been such a successful

 7   program in New York but it's so little known.

 8   It was created in 2003, when the Legislature

 9   created its package of brownfield cleanup

10   laws.   And although we are not talking about

11   urban revitalization of brownfield cleanups

12   to the extent that we did some years ago, the

13   fact that the Brownfield Cleanup Program --

14   the BCP, the big gorilla in the brownfield

15   cleanup room -- is expiring at the end of

16   2022 makes me think that we'll probably be

17   having this conversation a few more times.

18           But specifically to BOA.   There was a

19   problem in the way that urban redevelopment

20   was being conducted in New York, and that was

21   that the communities that were most impacted

22   by contaminated lands, especially urban

23   lands, did not have a seat at the table about

24   what the future of their neighborhoods was
                                                      415

 1   going to be.

 2         This is in some ways similar to the

 3   conversation we're having about impacted

 4   neighborhoods in relation to the climate

 5   crisis.   So the Brownfield Opportunity Areas

 6   program put money in the hands of local

 7   community members to have a say in the future

 8   of their communities.

 9         And if you take a look at the

10   testimony and the communities that today are

11   benefiting from the Brownfield Opportunity

12   Areas program, you'll see how it has

13   actually, although it was an idea that was

14   created and championed in the environmental

15   justice movement, it has become a major tool

16   for economic development across the state,

17   with -- I would say particularly in some of

18   the upstate municipal areas.

19         The way the program was set up, there

20   were stages, and eventually the final stage

21   was the creation of a plan which was then to

22   be designated by the Secretary of State.   And

23   in 2009 there were amendments that allow BOA

24   projects that have been designated -- when a
                                                       416

 1   developer develops consistent with that

 2   program, they get a tax credit, an additional

 3   tax credit.

 4         And I want to call your attention to

 5   that because there are now 57 designated BOAs

 6   across the state.    In every regional economic

 7   development -- REDC region, there are

 8   designated BOAs.    Six of them have reached

 9   the stage where the Secretary of State has

10   said, Okay, you qualify for these tax

11   credits.

12         Revitalizing downtowns is critical on

13   a number of different levels.    And if there's

14   any question about this -- and this is sort

15   of the main point I wanted to make.   You as a

16   legislature have supported the Governor's

17   proposal for the Downtown Revitalization

18   Initiative, DRI, a much bigger program,

19   $100 million a year.   It's in this year's

20   budget too.   And what happens -- that's where

21   the "Hunger Games" meme comes from,

22   competition between different communities.

23         Nevertheless, we are now ready to

24   start the fifth round of DRI.    That means a
                                                      417

 1   number of urban projects will qualify for a

 2   $10 million redevelopment grant.   In the

 3   first year of the program, the first

 4   10 projects that won DRIs, half of them

 5   started out as BOAs.   Why was that?   Because

 6   that's what allowed communities that didn't

 7   necessarily have the resources to hire

 8   planners or developers to actually compete

 9   successfully.   And so now, now that we've had

10   four complete rounds, with another one to go,

11   a quarter of all DRI awards have gone to

12   projects that started as BOAs.

13         And with my 15 seconds that I have, I

14   would just say it's a very valuable

15   $2 million that's embedded within the

16   Environmental Protection Fund, and the Center

17   for Creative Land Recycling and many of our

18   allies hope that you will support it when the

19   time comes.   Thank you.

20         (Timeclock chimes.)

21         CHAIRWOMAN KRUEGER:    Perfect timing.

22   Thank you.

23         So you got it, everybody?    Two million

24   dollars, they want to keep it, they'd love to
                                                          418

 1   get more -- we're probably not giving them

 2   more.

 3           Thank you for coming and testifying,

 4   Jeff.

 5           Any other questions?    All right --

 6           MR. JONES:    Can I take these paper

 7   clips and recycle them?

 8           (Laughter.)

 9           MR. JONES:    Thank you.

10           CHAIRWOMAN KRUEGER:    Goodbye.

11           Citizens Campaign for the Environment,

12   the indubitable Adrienne Esposito, executive

13   director.

14           Followed by, again, Sierra Club,

15   Roger Downs, and New York Farm Bureau,

16   Jeff Williams.

17           Good evening.

18           MS. ESPOSITO:   Good evening.     And

19   thank you to all of you who are sticking it

20   out, your endurance and fortitude is

21   well-appreciated.

22           My name is Adrienne Esposito.      I'm the

23   executive director of Citizens Campaign for

24   the Environment.     We are a 120,000 member
                                                      419

 1   organization throughout all of New York State

 2   and also Connecticut.

 3         I'm going to make a couple of quick

 4   points, and I'm going to talk quickly because

 5   the clock literally is ticking.

 6         The first thing is water.     Thank you.

 7   I just want to say I know you don't hear this

 8   often enough, but thank you for the Water

 9   Infrastructure Improvement Act.   When you

10   opened up that act as a line item in the

11   New York State Budget back in 2015, it really

12   started something big.   It started out small

13   with $50 million, then it inched up to

14   $75 million, and before we know it, in 2017

15   you allocated $2.5 billion -- 500 million

16   last year, and another proposal of adding

17   500 million this year.

18         That has been a huge success.     Right?

19   The sewer infrastructure, drinking water

20   infrastructure, the pipes don't fix

21   themselves.   We have to do it.   So I want to

22   urge you to continue and build on that

23   success.

24         It's my job to say thank you but also
                                                        420

 1   to ask you for more, and so I shall.    We're

 2   asking for $1 billion for water

 3   infrastructure in that line item this year.

 4          When the previous estimate of how much

 5   it would cost New York State to upgrade

 6   sewage treatment plants and drinking water

 7   was crafted, that was before we even knew

 8   about emerging contaminants -- 1,4-dioxane,

 9   PFOA, PFOS.     Now we have the added burden and

10   will be looking at more emerging contaminants

11   this year that will be right around the

12   corner for us to filter out.

13          So we can't sit back and rest on this

14   success; we have to keep pushing forward.

15   Clean water protection, public health

16   protection, we ask that you please give it

17   the highest priority, as you have.    Thank

18   you.

19          The second thing is wetlands.    We're

20   thrilled to see in the Governor's budget the

21   12.4 acres for mapping will now be only

22   educational, not jurisdictional.    Which means

23   all wetlands, 12.4 acres, will be protected.

24   That's great.
                                                     421

 1           But members of the Senate and the

 2   Assembly, this could actually be the year

 3   that we actually protect wetlands one acre or

 4   more.   Because 12.4 acres is not an

 5   ecological threshold, it's a political

 6   compromise.

 7           So on the one hand I have gone to I

 8   don't even know how many meetings where we're

 9   talking about nature-based solutions to

10   flooding, flood control, preserving wetlands,

11   restoring wetlands, reconstructing wetlands.

12   That's great.   On the other hand, we have a

13   policy that only protects wetlands

14   12.4 acres.   So if it's 11 acres, ah, we

15   don't care.   That doesn't make sense.   That

16   actually is counterproductive.

17           So if we want nature-based solutions

18   and we want to protect communities from

19   flooding, let's not allow wetlands to be

20   developed upon.

21           The third thing I want to mention is

22   glass recycling, just very quickly.    We've

23   heard over and over again that we cannot

24   recycle glass, we don't recycle glass.    The
                                                        422

 1   truth be known, where I live they don't pick

 2   it up anymore.    You bring it to a special

 3   drop-off.     You wash your cans, then you drop

 4   it off -- then you know what they do with it?

 5   They grind it up and put it in the landfill

 6   as a liner.    That's not recycling.

 7            So until we actually have a glass

 8   market, a glass recycling center in New York,

 9   that's when we'll recycle glass.     That's

10   something that could be put into the

11   environmental bond act.    That would be a good

12   capital expense, as I'm being told what's

13   being looked for in the bond act.      Helps

14   solve one of the key municipal waste

15   challenges that we have right now.

16            Another thing is the EPF.   I just want

17   to reiterate we stand with our colleagues in

18   the environmental community.     Please again,

19   Senate and Assemblymembers, let's fight

20   against offloading DEC staff into the EPF.

21   Once that door is open, it's not going to

22   close.    We need to keep the EPF as solid as

23   it is.    It's our only area where we protected

24   the environment and we need to keep it as
                                                       423

 1   such.

 2           Two other quick things.    Please stand

 3   strong with the Styrofoam ban.     I know those

 4   jobs that are in New York State are

 5   important, but jobs must transition.     Just

 6   like when we used to produce phone books and

 7   now we don't, or rotary phones, or even

 8   typewriters, and now we don't.     Those jobs

 9   transition.    As society changes and evolves,

10   the jobs must change and evolve.    We don't

11   stunt the evolution of society, but rather we

12   change the jobs to meet new societal needs.

13           I live in a county that bans

14   Styrofoam.    We're all good, we're all fine.

15   We can do it as a state.

16           And last but definitely not least --

17   this relates to what Senator Kaminsky had

18   asked earlier -- there's supposed to be, but

19   there isn't, a small tiny little literally

20   drop in the bucket in the budget of $200,000

21   to study water sharing between New York City

22   and Nassau County.   New York City has a

23   surplus of 1 billion gallons per day that

24   they would like to share; Nassau County has a
                                                      424

 1   deficit in the county.   Sharing water would

 2   allow us to fight saltwater intrusion and

 3   have a more sustainable water supply.

 4         Please, if we could put the $200,000

 5   in the budget where it belongs, it would mean

 6   a lot to 1.5 million people.

 7         Thank you very much.

 8         CHAIRWOMAN KRUEGER:      Thank you,

 9   Adrienne.

10         Questions from the Senate?      From the

11   Assembly?

12         ASSEMBLYMAN CUSICK:      Yes.

13   Assemblymember Ra.

14         ASSEMBLYMAN RA:    Thank you, Adrienne.

15   Good to have you here.

16         MS. ESPOSITO:   Hi, Assemblyman.

17         ASSEMBLYMAN RA:    Thank you for

18   sticking it out with us.

19         MS. ESPOSITO:   It was close, but I did

20   it.

21         ASSEMBLYMAN RA:    Just a quick

22   question.   Back in the fall you had come out

23   and testified when we had our Water Quality

24   Task Force, and one of the things we were
                                                       425

 1   obviously talking about that night was

 2   1,4-dioxane and treatment and costs and all

 3   that.

 4            And obviously there's been some

 5   developments in the situation since then,

 6   both in terms of some additional funding

 7   going to our local water districts and also

 8   the regulation and time that the water

 9   districts were asking for in terms of putting

10   new technologies online to deal with that

11   issue.

12            So any thoughts as to where we are now

13   versus then?    Obviously funding is going to

14   continue to be an issue, to make sure that

15   districts can, you know, comply with the new

16   regulations.    But any further thoughts on

17   where we ended up with the regulations?

18            MS. ESPOSITO:   Well, I have to say,

19   you know, funding and technology will mean --

20   will be a challenge.     But I have to

21   compliment the New York State Department of

22   Health and the Drinking Water Task Force for

23   their solution, which is to give a two-year

24   extension for some water suppliers who can
                                                       426

 1   prove that they're doing due diligence in

 2   being able to filter 1,4-dioxane but they

 3   still need two more years to comply.      And

 4   then if really they need it, they can do one

 5   more year.

 6         So water suppliers asked for a

 7   seven-year leeway or grace period, and the

 8   Department of Health said no, gave them two

 9   years and a potential three years.     So I

10   thought that the system that was crafted, as

11   best as my knowledge about it, is reasonable

12   and I think is good enough for the water

13   suppliers.   It helps the public feel more

14   secure that we're aggressively seeking clean,

15   safe, healthy water for them.

16         ASSEMBLYMAN RA:    Thank you.

17         CHAIRWOMAN KRUEGER:    Thank you.

18         I want to thank you for pointing out

19   the correlation between our need to change

20   our business practices in order for the

21   planet to survive.

22         And again, the assurance that I think

23   got lost sometimes today, that people will

24   have new jobs in a new green sector.    So just
                                                       427

 1   because you might find yourselves no longer

 2   working in a polluting industry, it doesn't

 3   mean there won't be new jobs you've never

 4   heard of yet in the industries we are

 5   creating at breakneck speed if we think we're

 6   going to last.

 7           MS. ESPOSITO:   That's exactly right.

 8   I mean, we need to change.    We're supposed to

 9   change as a species, and our jobs have to

10   change with those -- you know, with our

11   ability to evolve.

12           CHAIRWOMAN KRUEGER:   Thank you.

13           MS. ESPOSITO:   Thank you.

14           CHAIRWOMAN KRUEGER:   Thank you very

15   much.

16           Okay, we are now up to Roger Downs,

17   the Sierra Club, followed by the Farm Bureau,

18   followed by the Farm Viability Institute.

19           Hi, Roger.

20           MR. DOWNS:   Hi, how are you.

21           Senator Krueger, esteemed committee

22   members, thank you for allowing the Sierra

23   Club at this time to provide testimony.

24           Last year the New York State
                                                     428

 1   Legislature and Governor Cuomo made history

 2   by passing the strongest climate change

 3   legislation in the country, putting the

 4   Empire State on a path to a carbon-neutral

 5   society by 2050.    This ambitious vision of

 6   reaching 100 percent renewable energy by 2040

 7   in a way that prioritizes and uplifts

 8   disadvantaged communities now has to be met

 9   with the even more daunting task of

10   implementation.

11            These next few months and years will

12   test whether we have the resolve to make

13   transformative change out of our ambitious

14   goals.    The Sierra Club finds a lot to be

15   optimistic about in the 2020 Executive

16   Budget, and has great confidence that the

17   Senate and Assembly can build upon these

18   commitments to methodically reduce greenhouse

19   gas emissions, build equity and resiliency in

20   our communities, and clean up our

21   environment.

22            I'd like to quickly touch upon a few

23   priority issues.   We celebrate a continued

24   fully funded EPF at 300 million but express
                                                     429

 1   concern, along with everyone else, for the

 2   appropriations language that opens the door

 3   to unlimited offloads from the General Fund

 4   to pay for staffing costs.

 5         We support augmenting DEC staff by at

 6   least 47 to accommodate new climate law

 7   responsibilities, but we'd like to see a

 8   five-year plan to see that number rise to 250

 9   by 2025.

10         We herald codifying the historic

11   fracking ban but hope the final Article VII

12   language will mirror the Metzger-Krueger

13   language to include oil wells and a ban on

14   fracking that also includes gel propane as a

15   fracking fluid.

16         We applaud Governor Cuomo's off-budget

17   commitments to grow electric vehicle

18   infrastructure, but feel that the Legislature

19   should enact a sales tax exemption for EVs

20   and augment the $2,000 EV rebate to fill the

21   gap left by the Trump administration's

22   unwillingness to renew sunsetting federal tax

23   credits.

24         And we'd also really like to see the
                                                     430

 1   Legislature get more involved in the

 2   Transportation Climate Initiative.    I think

 3   we really need your voices on that agreement.

 4         Certainly we support the ban on

 5   polystyrene -- this is something of course

 6   that Senator Krueger started -- and the EPR

 7   for carpets and mattresses.

 8         But with my time, I would like to just

 9   dig into the issue of reforming and

10   strengthening wetland protections.    It's an

11   understated yet significant environmental

12   offering in the Executive Budget.

13         For the past two decades New York has

14   been entangled in the federal legal debate

15   over what constitutes a wetland and who has

16   the authority to protect them.   Recently

17   efforts by the Trump administration to roll

18   back Obama-era clean water rules has only

19   intensified the need for New York to clarify

20   how we as a state regulate freshwater

21   wetlands, one of our most valuable and

22   misunderstood resources.

23         New Yorkers rely on swamps, fens, bogs

24   and wet meadows to filter pollutants from our
                                                       431

 1   waterways, recharge our aquifers, and absorb

 2   catastrophic floods.    Yet there often appears

 3   to be little public awareness that we are

 4   filling, dredging and draining wetlands at an

 5   alarming rate -- at least until we find our

 6   neighborhoods underwater and our public water

 7   supplies contaminated.

 8         Currently, as Adrienne said, for a

 9   wetland to be subject to regulations under

10   New York State law, it must be delineated on

11   existing freshwater wetland maps prepared by

12   DEC after lengthy public comment.   But most

13   of these maps haven't been updated in over

14   20 years, making them woefully incomplete,

15   and the amendment process can be

16   time-consuming and overly burdensome in

17   administrative costs.

18         There are hundreds of thousands of

19   acres of wetlands in high-development areas

20   in New York that are not on official maps but

21   desperately require protection.    Governor

22   Cuomo's proposal would remove the

23   jurisdictional barriers that these maps have

24   created and allow DEC to immediately protect
                                                      432

 1   and regulate wetlands if they meet the basic

 2   scientific definition of these critical

 3   habitats, featuring hydrophilic plants and

 4   hydric soils.

 5          And as Commissioner Seggos said

 6   earlier, this could amount to more than a

 7   million acres more than what we're regulating

 8   now.

 9          And I just, you know, want to conclude

10   that, you know, for years the Sierra Club has

11   campaigned to pass the Clean Water

12   Protection/Flood Prevention Act.     This

13   legislation would move the jurisdictional

14   wetland barrier down to one acre.    And I

15   really encourage the Legislature to move in

16   that direction to see what we can do in

17   negotiation, but don't let this opportunity

18   pass us by.

19          And I think this is a really nice

20   complement to the bond act.   And I think that

21   clean water and healthy ecosystems are a

22   cornerstone of any thriving economy.    And we

23   hope you support inclusion of this essential

24   reform to wetlands in the budget.
                                                          433

 1           Thank you.

 2           CHAIRWOMAN KRUEGER:     Thank you.

 3   Everybody's got it perfectly timed tonight.

 4           MR. DOWNS:   I was a little over.

 5           CHAIRWOMAN KRUEGER:     That was pretty

 6   good.

 7           Any Senate questions?     Any Assembly

 8   questions?

 9           Thank you very much, Roger.

10   Appreciate it.

11           MR. DOWNS:   Thank you.

12           CHAIRWOMAN KRUEGER:     Okay.   All right,

13   now we have the Farm Bureau, the New York

14   Farm Viability Institute, New York Wine and

15   Grape Foundation, American Farmland Trust --

16   we've got a theme going here.

17           Hello.

18           MR. WILLIAMS:   Good evening.    I'm Jeff

19   Williams, the director of public policy at

20   New York Farm Bureau.    We're going to switch

21   this to the agricultural portion of the

22   budget hearing.

23           New York Farm Bureau, for those who

24   don't know, is a trade association that
                                                        434

 1   represents farmers in the state.    We have a

 2   extremely diverse industry in New York.    We

 3   are not like the Midwest with just corn and

 4   soybean; we have a tremendously diverse

 5   industry, which you'll hear from the speakers

 6   behind me.

 7         What you'll probably also hear is the

 8   fact that farming in this state -- and

 9   frankly globally -- is depressed.    New York

10   farmers in the last couple of years have lost

11   about a billion dollars in farm revenue.     The

12   dairy industry particularly is hurting

13   greatly after five years of pricing

14   downturns.   And part of that, frankly, is the

15   high labor costs in New York State.   Last

16   year with the Farm Labor Bill being passed,

17   that only contributed to the problems that we

18   have with paying workers in this state.

19         But that said, the budget for

20   agriculture is quite widespread and matches

21   our diverse industry.   We really depend on

22   funding for animal health and animal health

23   research -- public health, frankly, that

24   stems from that -- workforce development,
                                                      435

 1   farm safety, migrant childcare, and research

 2   and promotion on a whole host of agricultural

 3   commodities.

 4         Those research and promotion programs

 5   are housed in the Ag & Markets budget, in the

 6   Aid to Localities.   That section really is

 7   our Empire State development.   Other

 8   businesses go to ESDC for support; we go to

 9   the Ag & Markets, in that budget, for

10   economic support.

11         We're really pleased that the Governor

12   has primed the pump for the second straight

13   year for funding many of these programs,

14   either fully or partially, and we're very

15   thankful for that.   Last year, if you recall,

16   that was all in a lump sum.    This year he

17   actually broke it out to make it easier for

18   you all, hopefully, to restore program

19   funding.

20         And I'm just going to name a few

21   programs that we really care about that need

22   funding in the final budget:    North Country

23   Agricultural Research; Christmas Tree

24   Research; Turf Grass; Farm Viability;
                                                       436

 1   Harvest NY; Vegetable Research; PRO-DAIRY,

 2   with an expansion of funding for

 3   environmental projects.     Those are programs

 4   that our industry really depends upon.

 5         You heard a lot about the EPF, and we

 6   too rely on the EPF for farmland protection

 7   and non-source-point water pollution

 8   programming, pollinator protection, climate

 9   research.   So we are aligned with our

10   environmental brothers and sisters on making

11   sure that we have a fully funded EPF and

12   staffing is not paid for out of the EPF.

13         I mentioned the Farm Labor Bill that

14   was passed into statute last year.    We are

15   desperately seeking some clarification in

16   language and, frankly, funding to help

17   farmers offset the costs.    And the Governor

18   has heard our plea and has included a number

19   of our requests in his proposed budget,

20   especially expanding the definition of family

21   to be included in the bill to the third

22   degree of consanguinity.     He also included a

23   refundable tax credit for investment in

24   farms, to bring them up to 21st-century
                                                     437

 1   standards of efficiency, and increasing

 2   funding for farmworker housing and the

 3   revolving loan fund through DHCR.

 4         We're still looking for some other

 5   fixes and changes in funding investments, for

 6   a change in law to allow salaried workers in

 7   agriculture who meet the salary tests for

 8   management to continue to be paid salary, in

 9   salary.   And also doubling the farmworker

10   retention tax credit that was implemented as

11   part of the minimum wage increase for farms,

12   to help again offset the costs of paying

13   workers an added amount starting this year.

14         That is my testimony.   I'd be happy to

15   answer any questions if you wish.

16         CHAIRWOMAN WEINSTEIN:   Thank you.

17         Any questions?

18         Senator Seward.

19         SENATOR SEWARD:   Yes, thank you.

20         Mr. Williams, you opened the door a

21   bit on the farmworkers bill from last year.

22   Could you -- by the way, I just want to start

23   by saying that our farmers are I think one of

24   our first and most ardent protectors of the
                                                      438

 1   environment, and very great environmental

 2   stewards.     And I think it's good for the

 3   environment if we keep our farmers farming.

 4         MR. WILLIAMS:     Amen.

 5         SENATOR SEWARD:     But can you describe

 6   what kind of effects are you hearing from

 7   your members in your industry that the

 8   Farmworkers Fair Labor Act has had on your

 9   members?

10         MR. WILLIAMS:     Yeah, we actually

11   canvassed a number of different farm owners,

12   at the request of the Division of Budget and

13   the Governor's office, talking about the

14   impact of the bill or the law on farms, in

15   order to make the case for some of the

16   inclusions he has in his budget.

17         And of the vegetable growers, apple

18   growers and dairy producers, the cost impact

19   has added -- it ranges, but between 50,000

20   and $100,000 per year per farm.    And when

21   farmers, especially dairy farmers, aren't

22   making any money, that's obviously very

23   concerning.

24         I know of one extremely prominent
                                                       439

 1   long-time farm family who of course is

 2   complying with these regulations and the law,

 3   but they themselves are on food stamps

 4   because they can't afford anything else.

 5         SENATOR SEWARD:   So what measures have

 6   some of them taken, you know, to compensate

 7   for the effects of the law?

 8         MR. WILLIAMS:   It's still early.    We

 9   haven't, obviously, gotten to the summer

10   growing season.   But they're looking at

11   trying to add workers, if they can, to keep

12   people below the overtime threshold.    But the

13   labor is so tight in New York State and

14   across the country for farmworkers, it's very

15   hard to do.

16         They're looking at transitioning to

17   less labor-intensive crops.   And I know apple

18   growers are thinking about getting out of the

19   business and doing something else.     They can

20   use mechanized machinery to harvest.    There's

21   really -- that's really what I've been

22   hearing lately.   And some, frankly, are

23   considering exiting the business.

24         SENATOR SEWARD:   If I heard you
                                                     440

 1   correctly, it appears you anticipate that a

 2   farm laborer will be working fewer hours in

 3   2020 than they did in 2019.   I mean, is that

 4   a correct assessment of one of the impacts?

 5         MR. WILLIAMS:   Much to the chagrin of

 6   the actual farm employees.    It's gotten

 7   around the country that really you don't want

 8   to go to New York because your hours will be

 9   limited, and they're looking for jobs

10   elsewhere.

11         SENATOR SEWARD:   So that could very

12   well lead this year to fewer migrant workers

13   coming to New York to service our farmers?

14         MR. WILLIAMS:   Correct.

15         SENATOR SEWARD:   One final question.

16         You know, when we get into the

17   collective bargaining parts of that act from

18   last year, do you think that the average

19   lifelong farmer is prepared to handle

20   collective bargaining, particularly when they

21   may be up against, you know, career labor

22   union lawyers and organizers?

23         MR. WILLIAMS:   We've done our honest

24   best to try to educate as many people as
                                                         441

 1   possible by doing road shows, meetings,

 2   training sessions with lawyers.      But we touch

 3   probably 20 percent of the farms out there.

 4           Farms don't have HR departments, they

 5   don't have counsel's office.    This is a whole

 6   new environment to them.   They are more

 7   equipped than they were last year, but they

 8   are still poorly equipped in order to deal

 9   with negotiating or having a labor union on

10   the farm.

11           SENATOR SEWARD:   Well, I appreciate

12   your candor in answering my questions.     And

13   as I said earlier, we've got to keep our

14   farmers farming.   That's good for the

15   environment.

16           MR. WILLIAMS:   Thank you.

17           CHAIRWOMAN WEINSTEIN:   Thank you.

18   Thank you.   Thank you for your testimony

19   here.

20           Before we call the -- I'm going to ask

21   the New York Farm Viability Institute to come

22   down, David Grusenmeyer, executive director.

23           And I wanted to acknowledge that

24   Assistant Speaker Felix Ortiz joined the
                                                        442

 1   committee some time ago.

 2         MR. GRUSENMEYER:      Thank you.   I want

 3   to thank the Senate and Assembly for this

 4   opportunity.

 5         I'm David Grusenmeyer, executive

 6   director of the Farm Viability Institute.     We

 7   are an independent nonprofit dedicated to

 8   helping farmers become more profitable and

 9   improve the long-term economic viability and

10   sustainability of our state's farms, the food

11   system, and the communities which they serve.

12         Since 2005 the institute has received

13   a legislative appropriation to fund a

14   competitive grant program serving all

15   agricultural production sectors in geographic

16   regions of the state.   We appreciate the

17   Legislature's confidence in the organization

18   and have worked hard to meet the

19   highest-priority needs as well as emerging

20   threats and opportunities of New York

21   agriculture.

22         The NYFVI board is happy to say that

23   we have not disappointed.    As a conservative

24   estimate, we have documented a more than
                                                       443

 1   $7 return to farm businesses for every dollar

 2   reimbursed to our projects.   Much of this

 3   success is attributed to our rigorous

 4   proposal review and selection process that is

 5   focused on farmer involvement.    We currently

 6   have over 100 farmers reviewing 56 proposals

 7   submitted this year from 25 different

 8   organizations requesting over $5.5 million.

 9         In the past, these review panels have

10   guided the institute to fund many innovative

11   and high-priority projects.   We funded

12   pollinator work before there was a Pollinator

13   Protection Plan for New York.    We have funded

14   soil health projects since 2005, our first

15   year in operation.   And over the years we

16   have invested over $3.6 million in

17   41 projects that had soil health components.

18         In 2017 we supported research to help

19   develop alternatives to chlorpyrifos for

20   cabbage maggot control.

21         In a project also started in 2017 that

22   was recently completed, we funded the

23   development of an algorithm to reduce the use

24   of antimicrobials in dairy.   The result was a
                                                      444

 1   60 percent reduction in antibiotic use on the

 2   demonstration farms.   Now we are following up

 3   with three demonstration projects to roll the

 4   practice out to more farms.    By the end of

 5   2020 we hope to have 40,000 cows being

 6   managed using this protocol.

 7         We are currently funding projects

 8   studying the use of ultraviolet light as a

 9   nonchemical control for diseases and insects

10   in vegetables and hops.

11         I wanted to cite just a few examples;

12   there are many more.

13         We're also prioritizing building

14   connections and collaboration between

15   researchers in different institutions,

16   including Cornell, University at Buffalo,

17   RIT, RPI, University at Albany, to more

18   effectively address ag research needs.

19   Currently the farmers on our review panels

20   and our board of directors have commented on

21   the high quality of the 2020 pool of

22   proposals.   It's shaping up to be a very

23   competitive year.

24         With level funding from last year, we
                                                     445

 1   will only able to fund 15 or 16 of the

 2   proposals submitted, leaving on the table

 3   lots of important high-priority work that

 4   would help farmers in their struggles to

 5   produce the high-quality food we've become

 6   accustomed to.

 7         This concludes my remarks.   I'm happy

 8   to answer any additional questions or provide

 9   additional information.

10         CHAIRWOMAN WEINSTEIN:    Questions?

11   Questions?   There are no questions.

12         Thank you for being here.    And your

13   testimony, as is all of the testimony that's

14   provided to the members, is circulated not

15   only to the members who are here but to all

16   the members of the relevant committees.

17   Thank you for being here.

18         MR. GRUSENMEYER:    Thank you.

19         CHAIRWOMAN WEINSTEIN:    Is the

20   New York Wine and Grape Foundation here?    I

21   heard they may have left.   I guess not.

22         American Farmland Trust, Samantha

23   Levy, New York policy manager.

24         MS. LEVY:   Good evening.   Thank you
                                                         446

 1   all very much for still being here, and thank

 2   you for the opportunity to testify.

 3            My name is Samantha Levy.   I am

 4   New York policy manager for American Farmland

 5   Trust.    For those of you that don't know us,

 6   we're a national nonprofit working to save

 7   the land that sustains us.

 8            So we've heard a little bit about the

 9   challenges that our farmers are facing.     In

10   New York we've lost the equivalent of

11   5,000 farms since 1980.    But we've taken a

12   lot of really important actions to stem that

13   tide in past budgets, and I'd like to thank

14   you so much for your support for those

15   programs.

16            I'm going to speak about a few

17   programs now in this year's State Budget,

18   just to help address some of the challenges

19   that we're facing.    I'm sure you've heard me

20   say before that our farmers are aging.      About

21   a third of our farmers are over the age of

22   65, and that represents just under 2 million

23   acres of farmland that will change hands over

24   the next decade as our senior farmers retire.
                                                     447

 1   And when that farmland changes hands, it

 2   becomes vulnerable to being lost to

 3   development.

 4         So some of the important programs that

 5   we fund here in the State Budget, like the

 6   Farmland Protection Program and the EPF, and

 7   Farmland for a New Generation in the

 8   agriculture budget, have been very important

 9   and will continue to be important in the

10   future.

11         So first I'll talk about the Farmland

12   Protection Program.   This is an immensely

13   popular program that permanently protects

14   farmland while investing in farm businesses,

15   securing our local food supply for folks in

16   New York City and elsewhere, while also

17   helping to pass farms to the next

18   generation and helping to combat climate

19   change.

20         We just celebrated a milestone of

21   75,000 acres protected, but it's not nearly

22   enough.   And on page 4 of my testimony --

23   which is quite long, so I'm not reading it --

24   but on page 4 of my testimony you'll see a
                                                         448

 1   list there of hundreds of farmers across

 2   New York interested in protecting their

 3   farmland and competing for a limited amount

 4   of funds.

 5         Now, earlier Senator Metzger and

 6   Assemblywoman Woerner asked questions of the

 7   commissioners about a $1 million proposed cut

 8   to the Farmland Protection Program.    Given

 9   the high level of demand for this program and

10   the important actions that it takes to help

11   our farmers, we're really hoping that that

12   funding will be restored to $20 million from

13   17, where it was proposed by the Governor.

14   It was at $20 million a couple of years back.

15         We think this is really important.       We

16   also, like many of our partners, don't

17   support the language.   And thank you so much

18   for your work last year to ensure that the

19   EPF funds all go towards these projects and

20   not towards agency expenses.

21         And then finally, the bond act.     We do

22   think that farmland protection is an

23   opportunity that we should explore in the

24   bond act.   Right now it's not included in the
                                                       449

 1   language.   So we just wanted to bring that to

 2   your attention, given the high level of

 3   demand for these funds.

 4         Second, Farmland for a New Generation.

 5   I'd like to thank so many of you for your

 6   support -- Senator May, Assemblywoman Fahy --

 7   for your support for this program.    This is a

 8   partnership between AFT, the Department of Ag

 9   & Markets, and many organizations across the

10   state to help diverse farmers find land in

11   New York and senior farmers to pass their

12   land to the next generation.

13         It has two components, a resource

14   center and land-linking website, and then a

15   network of organizations across the state

16   called regional navigators, who are there to

17   give one-on-one help to farmers to find land

18   or to senior farmers to plan to pass their

19   land on to the next generation.

20         And within one year we've had immense

21   success with this program.     Over 13,000 have

22   visited the website, over 1500 have received

23   one-on-one support, and we've produced

24   36 matches so far, spanning nearly 900 acres.
                                                    450

 1   And that includes GrowNYC as a regional

 2   navigator in New York City, and they're

 3   helping farmers establish new businesses in

 4   the city and in upstate New York as well.

 5         We're relying on your support again

 6   this year.   We're asking for $600,000 --

 7   200,000 for the resource center and then

 8   400,000 to support increased demand for

 9   regional navigators.   We now have 27 -- we

10   had 20 -- and they're instrumental in making

11   matches.

12         Finally, Farm to School.   I know I

13   only have 30 seconds left, but it's so

14   important.   Today we released a big report.

15   We've been evaluating the 30 percent

16   initiative and we've been doing a lot of

17   research on that.   I won't go into what the

18   program does, and there are findings in my

19   testimony on page 8-12.   You can find the

20   full report online.

21         But essentially, if we provide schools

22   with the right support this year, our

23   research shows that 72 percent of schools

24   feel confident they'll increase their
                                                        451

 1   purchases of New York food to 30 percent by

 2   2024.   And that would cause $150 million

 3   spent at the farm gate by schools and

 4   increase access to healthy local food for

 5   over 700,000 students.   And there are

 6   recommendations in my budget for how we can

 7   achieve that right support this year.

 8           Thank you.

 9           CHAIRWOMAN WEINSTEIN:   Thank you.

10           Assemblyman Ortiz.

11           ASSEMBLYMAN ORTIZ:   Thank you, Madam

12   Chairwoman.

13           I just would like to really commend

14   you because finally I'm hearing talk about

15   Farm to School.   I happen to be the

16   legislator who passed that bill, Farm to

17   School, and I'm very proud of that bill.       I

18   do believe that we need to do more.

19           And I see the progress of the piece of

20   legislation and I think that schools have

21   managed to begin to do their own farming,

22   which I'm very proud.    My own district, in

23   Sunset Park and Red Hook and Park Slope, we

24   do have some of the gardens that we began to
                                                        452

 1   put together.   And it's as a result of the

 2   Farm to School bill that I passed many years

 3   ago.

 4           So it's great to see the fruit of the

 5   seed that we put in the ground, and I commend

 6   you for continuing to do this work and the

 7   vision to make sure our children continue to

 8   be healthy.

 9           Thank you very much.

10           MS. LEVY:   Yeah, thank you.   And may I

11   just quickly say that school gardens are so

12   helpful when it comes to Farm to School and

13   teaching kids about where their food comes

14   from, not just the supermarket, but from the

15   ground and from farms.

16           And this report really does

17   research the new 30 percent initiative which

18   builds on the actions that you've taken, and

19   really helps unlock the potential for our

20   schools to spend more money on food from

21   New York farms and feed kids with that

22   healthy local food.

23           ASSEMBLYMAN ORTIZ:   Thank you very

24   much.
                                                      453

 1         CHAIRWOMAN WEINSTEIN:      Thank you.

 2         Senator May.

 3         SENATOR MAY:    Oh, yeah, thank you.

 4         Thank you, Sam.   So I'm sure you're

 5   aware of the research that shows that certain

 6   food choices have outsized impact on carbon

 7   emissions and climate change.    And I'm

 8   wondering if -- because I hear this from --

 9   especially from young people a lot about

10   this, so I wonder if that is translating into

11   changes in consumer behavior in terms of what

12   commodities people are buying.

13         And do you think about helping, say,

14   beef or pork or even dairy farmers transition

15   into lower-carbon options if the demand is

16   shifting?

17         MS. LEVY:    Yeah, there are a lot of

18   questions there.   Certainly we are working to

19   help our farmers adopt soil health practices

20   and more regenerative farming practices --

21   things like planting cover crops, reducing

22   their tillage in the field to reduce the

23   release of carbon into the atmosphere -- and

24   continuing to help farmers with rotational
                                                      454

 1   grazing projects.

 2         I can't speak too much on consumer

 3   demand.   I know that there are shifts

 4   happening in consumption of food based on

 5   some of these concerns.   When I look at

 6   Farm to School, because that's what I can

 7   speak to at this moment -- you know, for

 8   instance, Buffalo Public Schools, while they

 9   did increase their purchasing of ground beef

10   to make the 30 percent for burgers, they also

11   increased their purchasing of fresh fruits

12   and vegetables.   They doubled their

13   purchasing from -- jeez, now I'm going to say

14   maybe 10,000 off.   But I think that they

15   increased their purchasing to $700,000 from

16   $300,000 as part of this initiative.

17         So I think that because in New York we

18   grow the full plate -- you know, in addition

19   to meat and dairy we also grow fruits and

20   vegetables -- that these types of

21   initiatives, Buy New York initiatives, can

22   help in that direction.

23         SENATOR MAY:   Great.   And can you also

24   comment -- you know that we're -- the Rural
                                                        455

 1   Resources Commission is working on Farm to

 2   Institution, so going beyond the schools to

 3   SUNY campuses and state hospitals and nursing

 4   homes and other institutions.    Is that

 5   something that you see the capacity to

 6   support?

 7            MS. LEVY:   Yeah, absolutely.   We're

 8   really excited that you're interested in

 9   looking at SUNYs and to other institutions to

10   purchase more New York-grown food.

11            In my testimony I mention that we lead

12   the collaborative initiative Farm to

13   Institution-New York State.     We've done a lot

14   of research on what institutions are spending

15   on New York-grown food, and particularly our

16   SUNYs.

17            So we think that one of the main

18   things we can do is to set up a network of

19   farm-to-institution coordinators.    We're

20   focusing on farm-to-school, but they really

21   can serve to help other institutions too,

22   across the state, who have really helped

23   schools become so successful in Farm to

24   School.
                                                          456

 1           And so building -- creating that

 2   support network, but then building off of

 3   that network to increase farm-to-institution

 4   purchases to hospitals and SUNYs and others

 5   will be really important in future years.

 6   But a first step is to build on this

 7   initiative and create that support network

 8   across the state to start making those

 9   connections.

10           SENATOR MAY:   Great, thank you.

11           MS. LEVY:   Yeah, thank you.

12           CHAIRWOMAN WEINSTEIN:    Assemblywoman

13   Fahy.

14           ASSEMBLYWOMAN FAHY:     Thank you.   Thank

15   you, Madam Chair.

16           You covered a lot in your short

17   testimony.   I just have a quick question.

18   We've read a lot these last few days about

19   the Trump administration proposing some -- it

20   sounds like rather serious changes in the

21   school lunch program.    And I'm wondering if

22   that impacts any of the Farm to School

23   programs that you've made -- that we've made

24   such tremendous progress on, not only with
                                                     457

 1   healthier food but certainly food that is

 2   locally grown.

 3         Are you impacted by any of these

 4   proposed changes at the federal level?

 5         MS. LEVY:    Yeah, undoubtedly we are a

 6   national leader in this, in farm-to-school

 7   and then also, in that way, helping to

 8   increase healthy food for kids and schools.

 9         I don't think -- to answer your

10   question directly, I don't think that those

11   proposed changes will have a real impact on

12   our schools' ability to purchase

13   New York-grown food.   But I do -- you know,

14   because of course, like I said, we grow the

15   full plate in New York State.   So I think

16   schools will still be able to buy

17   New York-grown food even with those proposed

18   changes.

19         However, you know, we do want our

20   schools to purchase more fresh and minimally

21   processed foods.   So anything that we can do

22   there to help them either in this proposal or

23   thinking to future proposals will be really

24   important.
                                                        458

 1            But one of the most important things

 2   that we can look at from a state law

 3   perspective, from a federal law perspective,

 4   is really the procurement regulations.       And

 5   this is going to get a little weedy.    But our

 6   schools really need to follow an immense

 7   amount of regulations when it comes to how

 8   they procure their food -- federal, state and

 9   local.    And that was one of the main things

10   we found in this report was following this

11   patchwork of regulations really hamstrings

12   them to be able to spend their food dollars

13   at New York State farms.

14            So I didn't get to say this in my

15   testimony, but the Governor did propose

16   language in the TED bill, on page 262, to

17   increase the flexibility schools have to

18   spend food dollars at local farms.    I won't

19   go into all the details, but basically it

20   increases the small-purchase threshold, which

21   is lower in New York than the federal

22   threshold at $250,000.   Schools can spend

23   more dollars on food from New York farms that

24   way.
                                                          459

 1            ASSEMBLYWOMAN FAHY:     Thank you.

 2            I just would appreciate it if you'd

 3   keep us posted on this, because of the

 4   weakening of the standards at the federal

 5   level on the quality of the school lunch

 6   program.    I want to make sure that it doesn't

 7   lead to any rollback in the momentum that you

 8   have on the Farm to School.       Thank you.

 9            MS. LEVY:   We'll keep our eye on it.

10            ASSEMBLYWOMAN FAHY:     Thank you.

11            Thank you, Madam Chair.

12            CHAIRWOMAN WEINSTEIN:     Thank you for

13   being here.

14            MS. LEVY:   Thank you.

15            CHAIRWOMAN KRUEGER:     Thank you.

16            CHAIRWOMAN WEINSTEIN:     So next we have

17   Elizabeth Moran, environmental policy

18   director, New York Public Interest Research

19   Group.

20            CHAIRWOMAN KRUEGER:     And then for

21   people who want to move up front, Riverkeeper

22   and Scenic Hudson will be a panel after

23   Elizabeth Moran.

24            CHAIRWOMAN WEINSTEIN:     And whoever
                                                        460

 1   else is with Elizabeth.        So just identify

 2   yourself first.

 3            MS. MORAN:   Yes, absolutely.

 4            So my name is Liz Moran.     Thank you.

 5   Good evening.    Pleased to be testifying

 6   today.    My name is Liz Moran, I'm the

 7   environmental policy director for NYPIRG, the

 8   New York Public Interest Research Group, and

 9   I am joined by --

10            MS. OLVER:   Charlie Olver, a policy

11   associate from NYPIRG as well as a student

12   from SUNY New Paltz.

13            MS. MORAN:   Great.

14            So this year will mark the

15   50th anniversary of Earth Day, making this

16   year's budget and legislative session a

17   particularly critical one to show New Yorkers

18   as well as the rest of the country what it

19   means to truly lead on protecting public

20   health and the environment.       And this is

21   especially important as we're in the midst of

22   a global climate crisis.       As we speak,

23   Australia is seeing wildfires that are

24   unparalleled.    And additionally, recently we
                                                     461

 1   found that the past decade was the hottest on

 2   record.   Which is why it's so important that

 3   we now make record investments in our

 4   environment.

 5         So the proposed "Restore Mother

 6   Nature" Bond Act is a very important

 7   proposal, but we are strongly recommending

 8   that funding is increased to this proposal.

 9   We concur with some of our colleagues that a

10   minimum of a $5 billion investment should be

11   bonded for the purposes of protecting our

12   wetlands, fighting climate change.

13         Additionally, like the 1986 bond act,

14   we think that there should be more

15   specificity in terms of how the program is

16   delineated.

17         And we also are strongly encouraging

18   that the Legislature consider a "polluter

19   pays" approach to this.   The bond act should

20   not be paid back by the public, it should

21   fall upon the polluters responsible for our

22   climate crisis:   The fossil fuel industry.

23   There's legislation that is carried by

24   Senator Krueger and Assemblyman Cahill that
                                                      462

 1   would end fossil fuel subsidies in New York

 2   State.    And that's just one way that this

 3   could be done, amongst a number of ways we

 4   could hold polluters accountable, the payback

 5   for this bond act.

 6            There are several other issues in the

 7   budget related to fighting climate change and

 8   protecting water quality and fighting plastic

 9   pollution.    One of these is the ban on

10   fracking in statute.   We made the right move

11   in 2015 to ban this dangerous practice and

12   have since affirmed our decision that it was

13   the right one to make.

14            But we think that this ban could be

15   strengthened.    We do think the volume that's

16   listed should be lowered from 300,000 to

17   80,000 gallons.    And we need to make sure

18   that it's not just water fracking that is

19   included in this ban; it should also apply

20   towards propane gel.

21            But not only does that need to be

22   addressed.    New York State still has a

23   problem with fracking waste.    Fracking waste

24   was one of the many reasons why here in
                                                       463

 1   New York we banned fracking, and yet we still

 2   accept hundreds of thousands of tons of

 3   fracking waste every year.

 4         CHAIRWOMAN KRUEGER:      I just want to

 5   make sure you know it's five minutes for the

 6   two of you, so you want to make sure you

 7   leave her some time.

 8         MS. MORAN:   Yes, I got it.

 9         CHAIRWOMAN KRUEGER:      Okay, thank you.

10         MS. MORAN:   Thank you.

11         So despite this, we still accept

12   fracking waste from Pennsylvania.    And

13   there's a way that we can address this, and

14   that's by closing a loophole known as the

15   hazardous waste loophole.    Legislation to do

16   this passed with broad support in the Senate

17   last year, and we strongly encourage the

18   Assembly to do so this year.

19         I'd be happy to address some of the

20   comments made by Commissioner Basil Seggos

21   today at another time.

22         And to conclude my portion, we

23   strongly support addressing polystyrene, and

24   we think that also could be strengthened to
                                                      464

 1   include rigid polystyrene, prepackaged food,

 2   and we don't believe there should be hardship

 3   exemptions.   We also think it could go into

 4   effect faster by 2021.

 5           And I'm concluding by turning this

 6   over to Charlie to talk about why we are

 7   advocating for $1 billion to be invested in

 8   the Clean Water Infrastructure Act.

 9           MS. OLVER:   So 20 billion gallons of

10   raw sewage and polluted stormwater overflows

11   into the New York Harbor every year --

12   1.2 billion gallons are discharged into the

13   Hudson from the Capital Region alone

14   annually.   And last year 7.2 million gallons

15   of sewage overflowed from Newburgh in one

16   instance, in a 48-hour period.

17           As a Westchester native my summers

18   revolved around swimming in the Hudson.    I

19   was in that river no less than 20 times a

20   year.   How many accidental gulps must I have

21   taken, you know?

22           Sewage overflows have been regarded as

23   just that thing that happens every year, but

24   this cannot remain as just that thing that
                                                         465

 1   happens.   Safe drinking water is one of our

 2   most fundamental needs, and a new $1 billion

 3   allotment towards water quality is necessary

 4   to not only protect our rivers but to protect

 5   citizens from harmful contaminants, algal

 6   blooms and sewage overflows, as New York

 7   consistently faces these issues statewide.

 8         CHAIRWOMAN KRUEGER:     Thank you.    Thank

 9   you both very much.

10         MS. MORAN:      Thank you.

11         CHAIRWOMAN KRUEGER:     Thank you.    Any

12   questions?   Appreciate it.

13         CHAIRWOMAN WEINSTEIN:        Assemblyman

14   Englebright has a question.

15         CHAIRWOMAN KRUEGER:      Oh, excuse me.

16         ASSEMBLYMAN ENGLEBRIGHT:       So thank you

17   for your testimony.

18         I agree that the ballot question on

19   the environment is too small at 3 billion.

20   Are you planning on issuing a statement

21   calling for the larger amount?

22         MS. MORAN:    Yes.   We as part of our

23   testimony have called for a minimum of

24   5 billion to go into the "Restore Mother
                                                       466

 1   Nature" Bond Act.

 2         ASSEMBLYMAN ENGLEBRIGHT:     I think it

 3   would be very helpful, because you play the

 4   role of a very important third-party

 5   validator.   So I hope that you do that.      I

 6   hope you bring the conversation into

 7   conjunction with your fellow environmental

 8   organizations, and that we have a consensus

 9   emerge.

10         The Nature Conservancy has shown us

11   that the $5 billion, with their poll, is

12   viable.   So I look forward to seeing the

13   paper that you're going to issue on that.

14         Thank you.

15         MS. MORAN:    Thank you.

16         CHAIRWOMAN WEINSTEIN:      Thank you.

17         CHAIRWOMAN KRUEGER:     Thank you.

18         Next we have New York Riverkeeper and

19   Scenic Hudson in a panel.

20         Evening.

21         MR. CHERSON:   Good evening.

22         CHAIRWOMAN KRUEGER:     You get to choose

23   who goes first.

24         MR. BICKING:    I've never met this guy
                                                        467

 1   before --

 2            MR. CHERSON:   Never.

 3            MR. BICKING:   -- but I like to be nice

 4   to strangers.

 5            (Laughter.)

 6            MR. CHERSON:   Never heard of Scenic

 7   Hudson.

 8            (Laughter.)

 9            CHAIRWOMAN KRUEGER:     All right.

10            MR. CHERSON:   My name is Jeremy

11   Cherson.    I am the legislative advocacy

12   manager for Riverkeeper.    And thank you so

13   much for the opportunity to present here

14   today.

15            Riverkeeper protects the Hudson River

16   and the drinking water supply for millions of

17   New Yorkers.    And I agree with so much of

18   what my colleagues in the environmental

19   community have said here today.      We are very

20   supportive of the bond act and the goals and

21   categories laid out in the Governor's

22   proposal.

23            To answer Mr. Englebright's question

24   from earlier, I think Riverkeeper would be
                                                        468

 1   fully supportive of an increased bond act,

 2   given some of the needs that we face.

 3         One of the issues that you'll see in

 4   the appendices of our testimony is a look at

 5   the species decline in the Hudson River.      We

 6   looked at 19 species, and almost all of them

 7   are in decline, one of which is extirpated

 8   from the Hudson.   The only species that we

 9   looked at that is doing somewhat well is the

10   Atlantic sturgeon, and that's it.   All the

11   other ones are declining due to overharvest,

12   climate change.    And even the striped bass is

13   suffering, one of the most important fishes

14   for the sportsmen community.

15         So one of the things that we really

16   agree with our allies within the

17   environmental community is the need to

18   understand how the money is going to be spent

19   in the different categories.   I think that's

20   going to be very important in order to sell

21   the public on the need for this bond act, and

22   the importance of natural solutions to

23   flooding and future climate impacts.

24         And we're also very supportive -- like
                                                      469

 1   Roger Downs gave a very deep dive into

 2   Part TT of the TED Article VII on the

 3   wetlands change.   We've been very supportive

 4   for years on Mr. Englebright's bill to reduce

 5   the threshold to one acre, and we still call

 6   for that change.   It is needed, particularly

 7   with what the Trump administration has done

 8   just last week with the "Waters of the U.S."

 9   rule.

10           We have no idea what the Army Corps is

11   now going to have jurisdiction over in

12   New York.   Whereas, the Army Corps used to

13   step in and protect smaller wetlands, they

14   may no longer do so.   And so it's going to be

15   a challenge for New York to make sure we

16   don't lose those acres of wetlands that are

17   important -- because one acre of wetland can

18   hold a million gallons of water.   And so

19   that's vital as storms get more intense and

20   more rain falls.

21           I also want to get to a great question

22   you asked, Senator Krueger, of Commissioner

23   Seggos on the Army Corps HAT study.   We have

24   been calling for DEC to get more involved in
                                                     470

 1   that study and to put their thumb on the

 2   scale in regards to the alternatives that the

 3   Army Corps has laid out, including that over

 4   $100 billion sea gate that was proposed and

 5   President Trump tweeted about.    It's deadly

 6   serious.

 7         The Army Corps is only able to look at

 8   impacts on the environment directly at the

 9   building site of those gates.    They cannot

10   look at the environmental impacts beyond the

11   building site.   So all the fish that come up

12   the Hudson River from the ocean -- the

13   striped bass, the herring, the eels -- that

14   impact to our economy isn't looked at.    The

15   backup of sewage from the 20 billion gallons

16   that's released every year into New York

17   Harbor, getting backed up behind those gates,

18   they can't look at that.

19         And so for DEC to not come out and say

20   that they have a preferred alternative after

21   the Army Corps has been looking at this for

22   years, and the DEC is paying for 25 percent

23   of a $20 million study, that's just

24   unacceptable.    And we need to be calling on
                                                       471

 1   DEC to get more involved and to alert the

 2   public in the state that these studies are

 3   happening and to get engaged and to make

 4   their voices heard.

 5         I also want to thank the Legislature

 6   for the work on the Clean Water

 7   Infrastructure Act over the years.     Adrienne

 8   was spot-on that it started with a trickle

 9   and now it's a flood.   And we have to keep

10   that going.   We have so much need.   We have

11   communities in the Hudson River, the

12   Hudson 7, which is seven communities in the

13   Mid-Hudson Valley, 100,000 people that get

14   their drinking water from the Hudson, that

15   are working together and pooling resources to

16   protect their water quality and using funds

17   from the Clean Water Infrastructure Act to

18   not only improve their wastewater systems,

19   but also to improve their drinking water

20   systems and the quality of drinking water to

21   their residents.   So thank you, and we urge

22   you to supercharge that funding line.

23         Thank you.

24         CHAIRWOMAN KRUEGER:    Thank you.   Next?
                                                       472

 1   We'll ask questions, if we have questions,

 2   after you both speak.

 3            MR. BICKING:   Sounds good.

 4            Thank you for the opportunity to

 5   speak.    And congratulations on making 2019 a

 6   banner year for the environment in so many

 7   ways.    There's much to celebrate.

 8            I think where we are with 2020 is

 9   we're kicking off with clear vision, and

10   we're very excited.     By way of introduction

11   Scenic Hudson works across most sectors of

12   the environment, including conservation,

13   climate, energy development, contamination

14   reduction, stormwater management,

15   agriculture, habitat restoration, parks, and

16   yes, even community and economic development.

17            But to keep things brief, I will focus

18   my comments right now on the bond act and the

19   Environmental Protection Fund.

20            The bond act is a huge opportunity for

21   all of us to leave a legacy for our children,

22   grandchildren and future generations.    As

23   you've heard, it's likely to have strong

24   support provided your leadership, in
                                                      473

 1   collaboration with the Governor, is in place.

 2   In your conversations with the Executive, we

 3   encourage you to clarify project types and

 4   allocations to major categories and final

 5   legislative language, but also be sensitive

 6   and understand we want to achieve some

 7   balance and some flexibility in the fund so

 8   we can respond to future challenges that we

 9   may not quite be aware of yet.

10            We also echo that it's important to

11   get the messaging right and to make sure that

12   the bond referendum language in particular

13   can be easily understood by voters.

14            Two projects in the proposed bond act

15   stand out that we have been in conversation

16   with the Executive about, I'd like to talk

17   about.    First, the Hudson Eagles State

18   Recreation Area, spanning from Hudson to

19   Rensselaer linear park, reaching many

20   underserved communities in this stretch of

21   the Hudson Valley where we really need more

22   public access.    Old boat launches, old parks

23   are literally crumbling.   There's

24   infrastructure there that really needs to be
                                                      474

 1   updated, and the time has come for a

 2   coordinated, multi-agency approach to fixing

 3   that problem.

 4         And second, habitat restoration.     The

 5   Hudson River has been damaged in many ways

 6   over the years, and I'm glad to say that the

 7   DEC, working with partners, has developed a

 8   habitat restoration plan for the river that

 9   is ready to be implemented provided the

10   capital is in place.

11         With respect to the Environmental

12   Protection Fund, you know the difference

13   $300 million can make, and I thank you for

14   previous years' appropriations and ask you to

15   consider this the baseline investment in this

16   year's budget to complement the bond act.

17         I also echo the request to reverse the

18   proposal to use the capital fund in the EPF

19   for staff and would like to note some of the

20   cuts that do exist for the Open Space Land

21   Acquisition line and Farmland Preservation

22   lines and ask that you make restorations

23   where appropriate.

24         We also would like to note that
                                                       475

 1   ecosystem services in the Hudson Valley from

 2   open space are valued at $3.5 billion alone,

 3   just in the Mid-Hudson region, but yet

 4   two-thirds of that land remains unprotected.

 5   So let's just think about that for a moment.

 6   What legacy would we be leaving for future

 7   generations if we leave two-thirds of our

 8   open space -- and the many benefits it

 9   brings -- unprotected?

10         Specific to the EPF, in conjunction

11   with bond act funding, there is in the

12   Executive Budget a proposed new 500-acre

13   state park in Kingston, Ulster County.     This

14   land is currently owned by Scenic Hudson, and

15   we are very excited for a collaboration with

16   State Parks to protect over a mile of

17   waterfront, really put it towards public use

18   in State Parks' hands.   And this is really a

19   great opportunity.   It's within walking

20   distance of many residents of the City of

21   Kingston, and really an incredible

22   opportunity for the people who live there.

23         And second, the Governor has proposed

24   in his State of the State book a State Park
                                                     476

 1   Expansion and Upgrade Initiative that will

 2   target 4,000 acres of land in the Mid-Hudson

 3   region next to seven state parks.    This

 4   includes the purchase of the 945-acre

 5   Scofield Ridge property in the Hudson

 6   Highlands in Putnam and Dutchess Counties,

 7   also owned by Scenic Hudson.   State Parks'

 8   acquisition of this will add this land to the

 9   Hudson Highlands State Park and leverage

10   federal dollars from the Highlands

11   Conservation Act.

12         In closing, I would also like to point

13   out two new subcategories in the EPF that do

14   not compete with existing funds that are very

15   important.   That is the new Land Trust

16   Alliance Conservation Easement Program,

17   largely focused on forests, as well as the

18   State Land Stewardship/New York Natural

19   Heritage Program Protected Area Database,

20   very important baseline information and data

21   to help conservation professionals around the

22   state do their job.

23         So with that, I appreciate your

24   historic leadership and really look forward
                                                       477

 1   to working with you this year on many issues.

 2         Thank you.

 3         CHAIRWOMAN KRUEGER:     I have one Senate

 4   question, thank you.

 5         I know it's not necessarily addressed

 6   in the budget, but what's happening with the

 7   polluted areas of the Hudson where GE pulled

 8   out before they completed the assignment?   Is

 9   there any good news, anything happening?

10         MR. BICKING:     That's a great question.

11   I noted that that question was asked from

12   Senator Hoylman earlier today to

13   Commissioner Seggos.   And there is

14   contamination in hotspots that remain in the

15   Upper Hudson.   It remains a grave concern to

16   Scenic Hudson and Riverkeeper and many of our

17   partners.   We continue to pressure the EPA to

18   do something about it.

19         The state's Attorney General and

20   Governor should be commended for the lawsuit

21   that they have filed to try to reverse that.

22   We do note that there may still be

23   opportunities for the state to get involved

24   and find ways to reduce contaminants in that
                                                     478

 1   region through some targeted cleanup of their

 2   own.   That's something we would very much

 3   like to explore, and we have chatted a little

 4   bit with the DEC about.

 5          I'll also note that the natural

 6   resource damage claim and assessment has been

 7   ongoing with the -- between the DEC and the

 8   federal trustees.     The timeline for coming

 9   out with kind of the next step in that

10   process is not entirely clear, but we really

11   look forward to that and we would expect that

12   the trustees would identify a very large

13   settlement dollar amount for the

14   Upper Hudson, something on par with the

15   Deepwater Horizon settlement in the Gulf.

16          MR. CHERSON:    And we have also asked

17   for over two years for the EPA Region 2 to

18   initiate a full study of the Lower Hudson,

19   because some data that we've collected has

20   found that as you get farther away from the

21   cleanup effort that was done north of the

22   Capital Region, the effectiveness goes down

23   as you move downriver.

24          CHAIRWOMAN KRUEGER:     That's why we
                                                           479

 1   should have addressed it at the time it

 2   happened, as opposed to still be dealing with

 3   it.   And yes, it points to the obvious that

 4   this funny thing about air and water, it

 5   moves.    It doesn't stick in one place for us

 6   to do something about it.

 7            Any Assembly questions?

 8            CHAIRWOMAN WEINSTEIN:     No.

 9            CHAIRWOMAN KRUEGER:     Thank you very

10   much both for being here tonight.        Appreciate

11   it.

12            MR. CHERSON:    Thank you.

13            MR. BICKING:    Thank you.

14            CHAIRWOMAN KRUEGER:     Our next panel,

15   the Land Trust Alliance and the Open Space

16   Institute.

17            And then if people are looking at

18   their scorecard, that will be followed by a

19   panel of three groups from the Adirondacks.

20            MS. HANLEY:    Good evening.    My name is

21   Meme Hanley.    I'm the New York program

22   manager for the Land Trust Alliance.        On

23   behalf of the state's land trusts and their

24   champions, thank you for your leadership and
                                                       480

 1   commitment to protecting open space.

 2         I wanted to start with a little bit of

 3   background on who land trusts are and what

 4   they do.   Land trusts are nonprofit

 5   organizations that as all of or part of their

 6   mission actively work to conservative land or

 7   steward land.     We have about 85 in New York

 8   State, and they are making a sizable impact

 9   in our communities.     They've helped to

10   conserve 2.7 million acres.    They have 10,000

11   active volunteers.    And they are serving more

12   people in more places than ever before.

13         Today land trusts working in rural,

14   suburban and urban areas and are identifying

15   ways land trusts can have tangible benefits

16   to their communities.    Land trusts have the

17   local knowledge, technical expertise and

18   commitment to perpetuity that makes them

19   excellent partners to the state and to

20   municipalities.

21         So to ensure these gains continue, and

22   to give all New Yorkers the best chance for a

23   healthy environment, it is imperative that we

24   adequately fund the EPF.    Thank you for your
                                                      481

 1   commitment to $300 million -- or we hope for

 2   your commitment for $300 million, and we hope

 3   you will work to increase this to 500 million

 4   by 2025.

 5           Now I'd like to highlight two

 6   important issues within the EPF:

 7   appropriations for open space and staffing.

 8   Appropriations for open space and land

 9   conservation are a cornerstone of the EPF.

10   This funding should reflect the needs and the

11   priorities of our state.   We are concerned

12   that the Executive Budget reduces this

13   allocation from $33 million to $30 million.

14   This action is building upon cuts from

15   previous years, and the consequences are

16   adding up.   We hope you will work to restore

17   this funding to its historic levels over

18   time.

19           Staffing at state agencies must also

20   increase, but not as part of the EPF.    These

21   funds are intended and have always been used

22   for capital expenditures, not for operating

23   expenses of the state.

24           So now to our specific requests.
                                                        482

 1         First, the Conservation Partnership

 2   Program.   Continued investment will advance

 3   the state's conservation objectives with

 4   projects that are developed locally and

 5   supported broadly.

 6         The CPP is a model of efficiency.      It

 7   has tangible impacts for communities and

 8   directly advances the Open Space Plan.      And

 9   it has awarded grants exceeding $19 million,

10   but it has leveraged at least $20 million in

11   local matching funds.   It has supported the

12   protection of tens of thousands of acres and

13   touched probably as many lives.

14         So knowing this, I hope you will

15   continue funding the CPP at $2.5 million.     In

16   addition to my written testimony, you'll find

17   a few recent project highlights and a full

18   list of the 90 organizations that have

19   participated over the years.

20         So moving on to farmland, by working

21   with land trusts to conserve ag lands across

22   the state, the EPF has helped preserve an

23   important part of our economy and a way of

24   life for farm families.   As farmers grow
                                                          483

 1   older and issues of farm succession become

 2   even more acute, your work to ensure our

 3   farms stay in production is vitally

 4   important.

 5         So we urge you to ensure this work

 6   continues and ensure that it is well-funded

 7   at $20 million.

 8         We also see the need to begin

 9   protecting forests as a complement to our

10   farmland efforts.    The reasons are

11   straightforward.    Forests store carbon

12   dioxide, they filter water, they provide jobs

13   and they provide important habitat for

14   wildlife and recreation for people.

15         And while we have large, publicly

16   owned forests, 75 percent of forests in

17   New York are privately owned.    These lands

18   are owned by families who are now facing some

19   of the same challenges as farmers.      Their

20   lands are at risk for conversions at a time

21   when New Yorkers need them most.       Forests are

22   our first line of defense in a changing

23   climate, and these are risks not felt just by

24   forest owners, these are risks for all
                                                      484

 1   New Yorkers.

 2         So the proposed Conservation Easement

 3   Program for land trusts would be a meaningful

 4   and efficient step in addressing this

 5   problem.   We urge you to fund the

 6   Conservation Easement Program at $3 million.

 7         MS. MOSER:    I'm going to cut in really

 8   quickly.   I'm Kathy Moser.   I'm senior vice

 9   president at the Open Space Institute for

10   parks and policy.

11         One of the things that makes the

12   Open Space Institute unique in our parks

13   program is that we are going to invest

14   $10 million of private money on public lands

15   in 2020.   And we are incentivized, and our

16   donors are as well, by some of the grant

17   programs in the Environmental Protection

18   Fund, so we appreciate it being at

19   $300 million.

20         We also are very supportive of the

21   Mother Nature Bond Act.   We'd like to see

22   more details from the Governor's office

23   before we can judge whether or not $3 billion

24   is enough money, and so we look forward to
                                                      485

 1   working with the Legislature and the

 2   Governor's office to detail some of those

 3   issues.

 4         And then of course, you know, in the

 5   budget there's 47 staff for DEC and 22 for

 6   State Parks.    I'd like to hope that this is

 7   the beginning of an increase for those state

 8   agencies that are really desperate.    People

 9   have been talking about the new wetlands laws

10   and how many more staff are going to be

11   needed to make sure that New York is

12   protecting those wetlands.

13         So I'll stop there.

14         CHAIRWOMAN KRUEGER:     I know I have at

15   least one question.    I think you were trying

16   to answer it.    So you believe that the

17   Governor's bond act should provide funding

18   for the conservation work you were discussing

19   both for forestland and farmland.   It seems

20   to me a natural, with something you're

21   calling the Mother Nature Bond Act.

22         But is it your understanding that

23   these kinds of programs would be included and

24   could be expanded under that funding?
                                                       486

 1          MS. MOSER:    That's our understanding,

 2   especially land that would help with

 3   mitigation of flooding with resiliency.

 4          I think the thing that we all have to

 5   be careful about is a bond act is supposed to

 6   be used for anything that has a 10-year life

 7   span or more.    You know, so there's been talk

 8   about things that don't qualify.

 9          So I think that's one of the things

10   that we're going to have to work on with the

11   Governor's office, is what does qualify for a

12   bond act.   But land certainly would.

13          CHAIRWOMAN KRUEGER:     Thank you.

14          Assembly?

15          CHAIRWOMAN WEINSTEIN:    Assemblyman

16   Englebright.

17          ASSEMBLYMAN ENGLEBRIGHT:    Yes, thank

18   you.

19          Are -- I didn't see you actually

20   mention this; I'm sure you're aware that the

21   Executive Budget is proposing cuts to land

22   preservation.    I hope you take a strong

23   position on that in your communications to

24   the Executive.
                                                       487

 1           MS. MOSER:   Right, that's in our

 2   written testimony.   But Meme mentioned it as

 3   well.

 4           It's been as high as $66 million

 5   annually, and now it's down to 30, and

 6   there's some programs put in that line item

 7   as well.   So it's been reduced.

 8           ASSEMBLYMAN ENGLEBRIGHT:   It has, and

 9   it shouldn't.    And we still have something to

10   say about that if our third-party validators

11   get active, so I'm urging you to do so.

12           And regarding state lands, I'm hoping

13   that we can move toward a new category or

14   subcategory of state land, possibly certain

15   state forests, as designated pollinator

16   preserves or reserves.   Obviously we really

17   have a need to do that, given the problems

18   that our pollinators are experiencing.      And

19   so I'd love to work with you guys on that as

20   we go forward.

21           MS. MOSER:   I would just add, it's one

22   thing to buy the land, but for pollinators

23   you really need to do some stewardship on the

24   land as well to make sure that you have the
                                                      488

 1   right species that the pollinators need.

 2         ASSEMBLYMAN ENGLEBRIGHT:      Yes.

 3   Absolutely.    Thank you for your testimony.

 4         CHAIRWOMAN WEINSTEIN:     Thank you.

 5         CHAIRWOMAN KRUEGER:     Thank you both.

 6         MS. HANLEY:     Thank you.

 7         CHAIRWOMAN KRUEGER:     Thank you for

 8   being with us this evening.

 9         Our next panel, again as I mentioned,

10   it's three organizations representing

11   interests in the Adirondack Park -- the

12   Adirondack Council, Protect the Adirondacks,

13   and Adirondack Mountain Club.      And you all

14   can decide in what order you wish to go.

15         And for people who are still following

16   the TV Guide version of our day, Preservation

17   League of New York State will be next up

18   after the panel, then Parks & Trails

19   New York.    I'll stop there for now.

20         Good evening.

21         MR. CHLAD:     Okay, thanks so much.

22   I'll go first.   Kevin Chlad, director of

23   government relations for the Adirondack

24   Council.    Just a couple of points from our
                                                     489

 1   written testimony.

 2          The Governor's done great work

 3   promoting our Adirondack Park, with a

 4   25 percent increase in visitors since 2011.

 5   That's over 12.5 million visitors every year

 6   now.   And as a result of that trend, we're

 7   seeing impacts to our natural resources, to

 8   visitor safety, and to the wilderness

 9   experience that people are driving long

10   distances to have.

11          And so therefore we are challenged by

12   success, and there are a few opportunities in

13   this budget to address that.   The Governor

14   recently acknowledged that there are limits

15   to what the resources can withstand, and

16   there's a -- the DEC recently announced a

17   High Peaks Strategic Advisory Group that will

18   come up with comprehensive solutions to

19   address the high use we're seeing in the

20   High Peaks and elsewhere in the Adirondacks,

21   but those solutions are going to require

22   funding and staffing.

23          And so with that I'll just note that

24   we support an EPF of at least $300 million as
                                                        490

 1   we work towards a $500 million EPF in 2025.

 2   We do oppose the proposed language to offload

 3   staffing expenses under the EPF.    We also

 4   similarly oppose the transfer of RGGI

 5   allowance proceeds, auction proceeds to the

 6   EPF for EPF purposes.   Greenhouse gas

 7   reductions and climate resiliency work should

 8   go hand in hand and shouldn't go head to

 9   head.

10           And we support the state land

11   stewardship line increase in there.     There is

12   a subcategory that we support, but we also

13   want to support funding for wilderness

14   preservation and stewardship under that

15   category.

16           And with the bond act, we support the

17   $3 billion that have been proposed, but we

18   believe that the Legislature should take a

19   much closer look at adding specificity to the

20   allocation of resources, and stewardship is

21   where we should look to allocate some of

22   those resources.

23           CHAIRWOMAN KRUEGER:   Hi.

24           MR. BARRETT:   Hi, good evening.
                                                      491

 1   Michael Barrett, executive director for the

 2   Adirondack Mountain Club.

 3            We too commend the Governor on the

 4   $300 million proposed for the EPF.    We would

 5   like to see dedicated funds for stewardship

 6   for trails in the High Peaks, that we think

 7   that is very important, particularly as we

 8   look at high-use issues.

 9            We were very pleased to see 16

10   proposed staff to DEC for enforcement.      We

11   really hope that some of those are for Forest

12   Ranger positions.    You know, the Forest

13   Rangers, as you well know, provide for the

14   care, custody and control of 5 million acres

15   of DEC-administered public lands.    They are

16   responsible for twice the amount of acreage

17   as they were 50 years ago.    The Adirondacks,

18   which they cover, is 6 million acres, but we

19   only have 50 rangers.    By comparison,

20   Yellowstone is 2.2 million, a third of the

21   Adirondacks, and they have 330 full-time

22   rangers.    So we really hope for an increase

23   there.

24            The last issue I'm going to talk
                                                          492

 1   about -- and Senator Krueger, you've been the

 2   leader on this last year -- is the issue of

 3   ticks.     The Executive proposed budget does

 4   not include any funding.     We're asking for

 5   $1.5 million for education, prevention and

 6   treatment for ticks.

 7            Here's the issue.   Twenty-five years

 8   ago it just used to be an issue for the Lower

 9   Hudson Valley.    Now it's statewide.     It's the

10   perfect storm for ticks -- the seasons are

11   longer, there's more ticks, there's more

12   strains.     And the reason why it's so urgent

13   now is because of the prevalence in the

14   Adirondacks.

15            Paul Smith's College has found that

16   85 percent of the ticks in the Adirondacks

17   are now carrying Lyme and that the Lyme rate

18   has increased twentyfold in the Adirondacks

19   in just 13 years.     As we continue to

20   encourage people to get outdoors,

21   particularly in our North Country, we have to

22   protect them.     We can protect them with more

23   Forest Rangers and tick prevention.

24            Thank you.
                                                        493

 1            MR. BAUER:   Thank you very much.

 2            Peter Bauer, Protect the Adirondacks.

 3   And I'd like to echo the comments of my

 4   colleagues.    We are also supportive of the

 5   $300 million EPF.     We think the EPF should be

 6   expanded over the next several years.

 7            We are supportive of the increase in

 8   state stewardship funds.    As we've heard from

 9   many here today, use is at an all-time high

10   in the High Peaks.    Our trail system was

11   built in the years and the decades right

12   after the Civil War.    Many of these trails

13   have been in use for the last 150 years, and

14   they're hammered.

15            We need to build a sustainable trail

16   network in the High Peaks that are safe, that

17   protect our environment and uphold our

18   wilderness values.    The state has begun to

19   make an investment, a down payment in that

20   respect, but there's much more that we need

21   to do.

22            Just to echo some of the brief

23   comments that we've heard today.     We support

24   the wetlands changes critical to the wetlands
                                                     494

 1   systems in the Adirondack Park.      We don't

 2   believe any state position should be funded

 3   out of the Environmental Protection Fund.

 4            We oppose the RGGI raid.   We agree

 5   that there needs to be more dollars for

 6   climate change.

 7            In the bond act, we look for greater

 8   specificity as far as where this money is

 9   going.    Open space protection, forest

10   protection are vital and must be a major part

11   of this bond act.      And we certainly would

12   look to expand the scope of this bond act

13   well above $3 billion because we think

14   there's a solid case for money spent today

15   will reap billions of dollars of savings and

16   benefit down the road.

17            So thank you very much for your time

18   today.

19            CHAIRWOMAN KRUEGER:    Thank you.

20   Senate?    Assembly?   Is that a yes, Steve?

21            Steve Englebright from the Assembly.

22            ASSEMBLYMAN ENGLEBRIGHT:   Thank you

23   for your comments.

24            The bond act is one thing that I'm
                                                        495

 1   particularly focused on.    We've been waiting

 2   for an opportunity.    The Governor is giving

 3   us an opportunity.    I'm hoping that he will

 4   be open to some of the suggestions that you

 5   and others have made here today.

 6         I'm hoping also that as we attempt to

 7   follow through on what you're suggesting in

 8   terms of the devil in the details, will

 9   you -- my question is will you provide us

10   with some suggested project criteria and

11   guidelines that we could review and hopefully

12   help translate into some of the details that

13   are not yet fully formed?

14         MR. CHLAD:     Absolutely, Assemblyman.

15   And you've heard a common theme here from all

16   three of us that stewardship is a priority

17   right now in the Adirondacks.

18         And one thing that I could point to --

19   and my colleagues may have other things to

20   recommend as well.    But on page 2 of our

21   testimony we have the six best management

22   practices for wilderness management, and that

23   presents a comprehensive vision for how we

24   should be managing our wilderness lands.     And
                                                        496

 1   so there are lots of ideas, just thinking

 2   holistically about what we need to do, in

 3   those six best management practices from

 4   which we can draw a lot of different detailed

 5   proposals for the bond act.

 6         ASSEMBLYMAN ENGLEBRIGHT:    We would

 7   welcome a chance to look over your

 8   suggestions.

 9         MR. BAUER:    One of the best benefits

10   for bond act spending we think is open space

11   protection.    And that will have enormous

12   benefits for climate change down the road.     A

13   mature forest, a forest that is able to grow

14   over the next 200, 300 years, you know, is a

15   wonderful carbon sink.   So we think an

16   investment of $500 million, $600 million in

17   open space protection in forest systems in

18   New York is certainly merited.

19         ASSEMBLYMAN ENGLEBRIGHT:     Thank you

20   very much.

21         MR. BAUER:    Thank you.   Thank you,

22   Chairman.

23         CHAIRWOMAN KRUEGER:     Thank you very

24   much, gentlemen.
                                                        497

 1            Next we have Parks & Trails

 2   New York -- I'm sorry, Preservation League of

 3   New York State.    Forgive me.     Are you here?

 4   All right.

 5            Then Parks & Trails get ready to come

 6   up afterwards.    Then we have the American

 7   Chemistry Council for a change of theme.

 8            (Laughter.)

 9            MS. TOBIN:    Good evening.   Thank you

10   so much for allowing me an opportunity to

11   speak.    My name is Erin Tobin.    I'm vice

12   president for policy and preservation at the

13   Preservation League of New York State.

14            Thank you, Chairwoman Krueger and

15   Chairwoman Weinstein and other members of the

16   Senate and Assembly who are here and may be

17   listening.    The Preservation League is

18   New York's only statewide historic

19   preservation nonprofit organization, and I'm

20   here today to talk about historic

21   preservation, to support several of the

22   proposals in the Executive Budget, including

23   the budgets for the New York State Office of

24   Parks, Recreation and Historic Preservation
                                                      498

 1   and the New York State Council on the Arts.

 2   Although I know their hearing is later, since

 3   I'm speaking now, I wanted to put in a good

 4   word for them.

 5           Also echoing the many comments about

 6   the $300 million allocation for the

 7   Environmental Protection Fund.   And of course

 8   we also agree that funds should not be

 9   diverted for agency staff.   And we would love

10   to see that fund expanded to $500 million by

11   2025.

12           We're also supportive of the expansion

13   of the prevailing wage regulations that's in

14   the Governor's TED budget bill, with

15   exemptions for historic preservation projects

16   and small nonprofit organizations.

17           And I want to note with the prevailing

18   wage that it's really the projects that are

19   under $5 million, the nonprofits with gross

20   annual revenue under $5 million, and most

21   especially projects receiving tax benefits

22   related to historic rehabilitation -- it's

23   really important that they are able to retain

24   their economic development momentum and
                                                     499

 1   continue to revitalize our communities.

 2         And then I want to voice our support

 3   for the legislatively proposed improvements

 4   to our State Historic Tax Credit.   And my

 5   written testimony is missing one of the other

 6   bills, but I'll send revised testimony.

 7         But the two improvements to the State

 8   Historic Tax Credit that we're seeking is the

 9   ability to directly transfer those credits,

10   which is mirrored in the allowed

11   transferability of the New York State

12   Low Income Housing Tax Credit, and then also

13   increasing the State Historic Tax Credit from

14   20 percent to 30 percent for small projects,

15   which are those under $5 million.   And those

16   are both reflected in bills in the Assembly

17   and Senate.

18         And we are so very appreciative to

19   both the Assembly and the Senate for their

20   support of those two improvements, as well as

21   others which we achieved last year thanks to

22   the Legislature and the Governor, and we hope

23   that we can move forward on one or both of

24   those in this next budget cycle.
                                                      500

 1          We also appreciate the increase of

 2   capital funds for the Office of Parks,

 3   Recreation and Historic Preservation.    Our

 4   State Parks also house many historic sites,

 5   and those sites need a lot of restoration.

 6   We're very encouraged that State Parks is

 7   undertaking a survey of its buildings so that

 8   there can be a focus on maintenance and

 9   rehabilitation of the historic buildings

10   owned by Parks.

11          The testimony we submitted also

12   includes comments on the Governor's proposed

13   Reimagine the Canals initiative reflected in

14   his budget presentation, and it notes how

15   historic preservation can and should play a

16   key role in the Clean Energy Fund and our

17   state's response to climate change.

18          I'm going to again echo my nonprofit

19   colleagues here calling for more specificity

20   in the Governor's proposed $3 billion bond

21   act.   In particular, we believe that that

22   bond act should include funding for the

23   historic preservation as prior environmental

24   bonds have.   If we are to save open space, if
                                                        501

 1   we are to preserve wetlands, we also must

 2   promote and incentivize continued and

 3   adaptive use of our existing buildings.     It's

 4   a missing piece in this bond act proposal.

 5            Thank you for your time and attention

 6   today, and thank you for inviting the

 7   Preservation League to testify.    We are happy

 8   to provide additional information on this

 9   testimony and any other historic preservation

10   issue at the committee's request.

11            CHAIRWOMAN KRUEGER:   Thank you.

12            So I do have one quick question -- or

13   it's probably not quick, so you can get back

14   to me.    So you described in your testimony

15   that there is a task force that had

16   recommended changes to the canal system.

17            MS. TOBIN:   Yes.

18            CHAIRWOMAN KRUEGER:   And the Governor

19   sort of swept it in with his announcement

20   about something for the Erie Canal, but I

21   don't understand.     So apparently what that

22   task force you referenced recommended and

23   what the Governor recommended is not the

24   same.
                                                          502

 1         But so perhaps not for tonight, but if

 2   you could share with my office what you think

 3   the right answers are for continuing and

 4   finding new value for canal systems.       Because

 5   I think he talked about Power Authority

 6   putting 30 million into the Erie Canal.

 7   Which is a large sum of money and might be

 8   justified, but I don't understand what he

 9   intends to use it for.

10         MS. TOBIN:     We would be happy to share

11   that information.    We think it's great to

12   invest in our canal.   We think we can meet

13   the environmental goals while maintaining our

14   historic authentic canal system.

15         CHAIRWOMAN KRUEGER:     Thank you.

16         Anyone else?

17         CHAIRWOMAN WEINSTEIN:     Assemblyman

18   Englebright.

19         ASSEMBLYMAN ENGLEBRIGHT:      Did you see

20   the opinion piece in today's New York Times

21   on historic preservation?

22         MS. TOBIN:     Yes, I sure did.

23         ASSEMBLYMAN ENGLEBRIGHT:      Did it light

24   your hair on fire?   It did mine.
                                                          503

 1         MS. TOBIN:    (Laughing.)   It felt a

 2   little bit like clickbait.

 3         I would say that along with many of my

 4   preservation colleagues around the state and

 5   the nation, we've been preparing a response

 6   to that.

 7         And indeed the Preservation League --

 8   that Times editorial notes the challenges

 9   with solar panels on historic buildings.        We

10   actually have on our website resources for

11   owners of historic buildings who wish to

12   place solar panels on their historic

13   structures and do so in a sensitive way.

14         The preservation community is very

15   supportive of renewable energy.   We actually

16   put together a panel for our statewide

17   preservation conference that included Scenic

18   Hudson.    We've talked to NYSERDA.   So we're

19   very supportive of renewable energy.     That

20   editorial was -- presented one very extreme

21   viewpoint which we take issue with.

22         ASSEMBLYMAN ENGLEBRIGHT:    It's the

23   lead editorial today.

24         MS. TOBIN:    Yes.
                                                     504

 1         ASSEMBLYMAN ENGLEBRIGHT:      It is

 2   extreme.   It says such things as historic

 3   preservation and practice is not about

 4   preserving history, it's about preserving the

 5   lifestyle of affluent urban elite.

 6         That's not consistent with our tax

 7   program in this state, it's not consistent

 8   with the history of our preservation efforts.

 9   And it shouldn't be what shapes our

10   commitment to historic preservation in this

11   budget.

12         So thank you for your testimony today.

13         MS. TOBIN:    Absolutely.    Thank you.

14         CHAIRWOMAN WEINSTEIN:       Thank you.

15         CHAIRWOMAN KRUEGER:    Thank you.

16         Next up, New York Parks & Trails.

17   Again, followed by American Chemistry

18   Council, followed by Green Education and

19   Legal Fund.

20         MR. COTE:    Good evening.

21         CHAIRWOMAN KRUEGER:    Good evening.

22         MR. COTE:    Thank you, distinguished

23   members of the Senate and the Assembly, for

24   giving me the opportunity to speak with you
                                                     505

 1   all tonight on behalf of Parks & Trails

 2   New York.

 3         My name is Will Cote.    I'm the parks

 4   program director.   And since 1985, Parks &

 5   Trails New York has been the state's leading

 6   organization working to preserve and enhance

 7   a network of parks, historic sites and

 8   greenways for New Yorkers to enjoy.    Our

 9   network of dedicated park and trail

10   supporters is nearly 40,000 strong.

11         And tonight I want to talk to you

12   about supporting aspects of the Governor's

13   Executive Budget, which does include

14   important funding for New York's park system,

15   trails system, and shared green spaces.

16         Specifically, we thank the Governor

17   and encourage support from the Senate and

18   Assembly for $110 million in capital funding

19   for state parks and historic sites, and

20   $300 million for the Environmental Protection

21   Fund, which specifically includes $1 million

22   for the park and Trail Partnership Program

23   Grant, a capacity-building grant program for

24   grassroots friends groups.
                                                      506

 1         We encourage the Legislature to

 2   include the $110 million for New York Parks

 3   2020 capital funding for the Office of Parks,

 4   Recreation and Historic Preservation.     This

 5   investment in state parks infrastructure will

 6   continue to tackle the backlog of needed

 7   repairs and advance the revitalization of the

 8   New York State parks system.     And we

 9   appreciate that OPRHP's operations budget has

10   held relatively steady despite difficult

11   fiscal situations.

12         With visitation of more than

13   79 million, the commitment to protect our

14   parks and environment should be extended to

15   funding agency staff.   Targeted increases to

16   support day-to-day operations will allow the

17   agency to better fulfill its mission to

18   provide safe and enjoyable recreational

19   opportunities for New Yorkers.    We request

20   that the Senate and Assembly support the

21   Governor's call to add new staffing positions

22   at OPRHP, ensuring that residents and

23   visitors alike have access to quality

24   education and guidance and inspiration as to
                                                        507

 1   how best protect and enjoy our environment

 2   for the future.

 3         We also ask that you support the

 4   Environmental Protection Fund at

 5   $300 million.   We do applaud the Governor's

 6   commitment to that and obviously would

 7   encourage future growth of that fund into the

 8   future.

 9         Within the EPF, the Executive Budget

10   includes $1 million for the New York State

11   Park and Trail Partnership Program.    This is

12   a capacity-building grants program for

13   grassroots organizations or friends groups

14   that support, strengthen and improve the

15   state's parks, trails, historic states and

16   public lands.     Since 2015, 83 grants totaling

17   $1.8 million have been awarded, with funds

18   going towards innovative educational

19   programs, capital projects and

20   capacity-building undertakings, enabling

21   organizations to become more effective,

22   leverage more volunteer power, and ultimately

23   lead to even greater economic benefits,

24   improved access to outdoor resources, and
                                                     508

 1   healthier communities.

 2         I'd also like to point out that this

 3   year, as we prepare to announce our fifth

 4   round of awardees in March, we recognize the

 5   value this opportunity has for our

 6   volunteer-led groups.    We received 53

 7   applications requesting a total of $2 million

 8   during this round of applications, double the

 9   available funding that is available.

10         This response confirms the

11   effectiveness of the program, and we're proud

12   to be administering this matching grant in

13   partnership with OPRHP, DEC and grassroots

14   groups across the state.

15         Also worth mentioning is that we're

16   pleased to see increased funding for the

17   Connect Kids initiative, which provides

18   transportation to parks, nature and

19   environmental education centers for children

20   in K-12 education programs.   This gives

21   schoolkids a chance to experience nature and

22   the environment as well as provide students

23   an opportunity to share in the stewardship of

24   our natural resources.
                                                      509

 1            And we encourage the Legislature to

 2   approve this proposed funding expansion to

 3   $2 million, ensuring that even more young

 4   people are exposed to the beauty of nature

 5   and the importance of conservation across the

 6   state.

 7            The Governor's proposal includes

 8   language that would allow the use of EPF

 9   monies for agency staff salaries.    Like my

10   colleagues previously, this language -- I

11   would like to reiterate that the Legislature

12   has prevented this in the past, and we would

13   continue to urge them to do this as well.

14            The "Restore Mother Nature" Bond Act.

15   We encourage the Legislature to support the

16   proposed "Restore Mother Nature" Bond Act,

17   will fund environmental resource resiliency

18   through the preservation of open space,

19   restoring wetlands, waterways and wildlife

20   habitats, as well as facilitate the creation

21   of new recreational opportunities, many of

22   which have been discussed tonight.

23            In conclusion, I'd like to thank you

24   for the opportunity to testify today.    Parks
                                                         510

 1   and Trails New York looks forward to working

 2   with the Senate, the Assembly and the

 3   Governor to keep up the momentum for State

 4   Parks, solidifying New York's conservation

 5   legacy and strengthening the network of

 6   parks, trails and greenways across the state.

 7          CHAIRWOMAN KRUEGER:     Okay.   Any

 8   questions?   Thank you very much for your

 9   testimony tonight.

10          Okay, apparently the American

11   Chemistry Council is not with us --

12          UNIDENTIFIED SPEAKER:    Oh, no, yes, we

13   are.

14          CHAIRWOMAN KRUEGER:     Oh, excuse me.   I

15   just got a note saying not.

16          Well, come on down.     Did you submit

17   written testimony?

18          MS. GORMAN:   We did.

19          CHAIRWOMAN KRUEGER:     Okay.   If we

20   don't find it tonight, we'll get it to -- oh,

21   they've got it with them.    Very good.

22          Sorry about that.    I had just been

23   handed a note saying you weren't here.

24          MS. GORMAN:   That's okay.
                                                      511

 1         Good evening.     My name is Margaret

 2   Gorman.    I am the senior director for the

 3   Northeast region for the American Chemistry

 4   Council.   And with me tonight is my colleague

 5   Omar Terrie.   He is the director of our

 6   plastics and food packaging group at ACC.

 7         We are going to limit our testimony

 8   tonight to the polystyrene ban language that

 9   is in the budget proposal that proposes to

10   ban polystyrene in New York State.

11         Because the language is so broad, our

12   first concern are the manufacturing industry

13   in New York State.   We have identified almost

14   2,000 jobs that would be directly impacted by

15   this proposal, ranging across 10 sites in

16   New York, from Middletown, New York to

17   Buffalo, Albany, Rochester, Syracuse,

18   Canandaigua and more.

19         Three sites alone produce over

20   1400 jobs and also produce polystyrene food

21   service.   These three sites alone pay

22   $2.3 million in state taxes and contribute

23   $47 million in payroll.

24         There's been a lot of discussion about
                                                      512

 1   the job impact today, but one additional

 2   thing that I did want to bring to you is that

 3   the language is so broad in the budget it

 4   does bring in an impact to other public

 5   sectors.   The language includes a ban on

 6   schools -- so your elementary schools, your

 7   high schools, your colleges, your community

 8   colleges and local governments.

 9         There was a fiscal study previously

10   done on how that impact would be on schools,

11   for example, and elementary schools.   Because

12   the product is -- the alternative

13   products are two to four times more, it would

14   cost $25 million to elementary schools alone.

15   Municipalities, $10 million.

16         So looking at that and going into

17   alternative product, it is certainly going to

18   impact the public sector and the private

19   sector, ranging from hospitals to

20   restaurants, not-for-profits, fraternal

21   organizations and others.

22         Most food service packaging is not

23   recycled or composted within New York State's

24   existing recycling infrastructure.   So what
                                                       513

 1   is the solution?    Instead of a ban, ACC is

 2   strongly supportive of solutions that finance

 3   infrastructure investment.    We strongly

 4   support a food service packaging fee that

 5   would be paid by manufacturers that could

 6   fund these solutions as well as finance

 7   statewide recycling.

 8         I want to stress that it will not just

 9   be on polystyrene, it will be on all the

10   alternative food service products.

11         I'm going to conclude my testimony at

12   this point and turn it over to Omar.

13         MR. TERRIE:    Good afternoon, everyone.

14         Concerning the recyclability of

15   polystyrene, polystyrene is being recycled in

16   New York State.    Right here in Albany County

17   at a company in Cohoes, they are taking both

18   packaging material as well as food service

19   and recycling polystyrene into a polystyrene

20   insulation foam to be used in homes.    As we

21   all know, on the building construction side

22   polystyrene is an excellent insulator.      And

23   so we're looking to that as an example to be

24   able to increase getting food service out of
                                                       514

 1   the landfill and into a program where it can

 2   go to be recycled and help with insulating

 3   homes.

 4            In addition, polystyrene is being

 5   recycled in Madison County as well.

 6            Concerning the landfill issue, I know

 7   that that is a great deal of concern to

 8   everyone.    I did take note earlier today that

 9   Commissioner Seggos stated that around

10   29,000 pounds of polystyrene were going to

11   landfill.    When I looked on the DEC website,

12   it says that has a capacity of 7.9 million

13   pounds per year.    So when you take the 29,000

14   and divide it by the 7.9 million, that is

15   0.3 percent of the waste stream that is

16   polystyrene that, according to the

17   commissioner, is going to the landfill.

18            So this legislation, it impacts jobs

19   to divert 0.3 percent when it's (A) a

20   recyclable product, and (B) all the

21   alternatives are going to greatly increase

22   the cost of -- to schools and to

23   restaurateurs.

24            But at the same time alternatives --
                                                      515

 1   like polystyrene itself, frankly -- need

 2   additional infrastructure in order to be

 3   recycled.   A lot of the alternatives are

 4   going to be what is classified as compostable

 5   food service.   And those compostable food

 6   service alternatives do need what's

 7   considered an industrial compostable facility

 8   in order to be recycled.   New York currently

 9   lacks that infrastructure.

10           With that, I'll close.   I'm going to

11   allow questions.

12           CHAIRWOMAN WEINSTEIN:    Assemblyman

13   Englebright.

14           ASSEMBLYMAN ENGLEBRIGHT:   So you guys

15   were probably still in elementary school when

16   this issue came before the Suffolk County

17   Legislature and when I was a member of that

18   body.   I had brown hair in those days, and I

19   had bell bottoms.   And I was the primary

20   sponsor of the legislation that you're

21   probably familiar with, which was the first

22   in the nation on this topic.

23           I don't want to go over the whole

24   thing today, but it led to the longest
                                                        516

 1   hearing in the history of the Suffolk

 2   Legislature.   The hearing was more than

 3   two years.   We finally got to a point where

 4   we took the vote, and then I was elected

 5   here.

 6           And you guys went to my colleagues in

 7   my absence and successfully said the same

 8   things that you've just said today, and you

 9   promised them that if they would only make it

10   a voluntary program instead of a compulsory

11   law, that you would make sure that there was

12   widespread recycling of polystyrene.      And so

13   they said, Oh, okay.   And then you guys

14   didn't follow through.

15           And so here we are quarter of a

16   century later, and our landfills in fact, as

17   Commissioner Seggos has properly said, are

18   filling up, and we have a really chaotic

19   situation.   And you're back with the same old

20   refrain:   Trust us, let's recycle, oh, please

21   don't do such a restrictive law.

22           So I'm going to enjoy this

23   conversation, because I've been waiting for

24   it for all of these years.   I've been here
                                                      517

 1   now 28, 29 years.   I've been anticipating

 2   that at some point we would return to this.

 3   I promise you I am ready to strongly support

 4   what the Governor has put forward, and I

 5   believe he is on the right track.    And your

 6   track record as an industry in the county

 7   that I still live in is dreadful.

 8         By the way, that law that I did as a

 9   county legislator, to the best of my

10   knowledge it's still on the books.    But it's

11   voluntary.   And it hasn't worked.   And the

12   recycling premise that you have put before us

13   today has to somehow reconcile with that

14   failed history.

15         Thank you for your testimony.     I look

16   forward to this conversation as we go

17   forward.

18         CHAIRWOMAN WEINSTEIN:    Assemblyman Ra.

19         ASSEMBLYMAN RA:   Thank you for your

20   testimony.

21         Just a couple of questions in terms of

22   the industry and the manufacturers in

23   New York State.

24         One would be any idea or information
                                                      518

 1   you can get us in terms of the percentage of

 2   the business that is done in New York State

 3   as opposed to, you know, sending the

 4   materials out of state?

 5           MS. GORMAN:   That's a good question.

 6   I do know at least two.    One that has a

 7   thousand jobs in Canandaigua, 90 percent of

 8   those sales are in New York State.     Another

 9   one in Cohoes, about 75 jobs, 75 percent of

10   the sales are in New York State.     Just to

11   give an example.

12           ASSEMBLYMAN RA:   Okay.   And then the

13   other --

14           MS. GORMAN:   I can follow up with the

15   rest.

16           ASSEMBLYMAN RA:   Okay.   Please do.

17           And the other question is in terms of

18   those manufacturers, what portion of their

19   business is the sale of materials that would

20   be banned by this?

21           MS. GORMAN:   The exact percentages we

22   don't have.    But I do know that, you know,

23   some of these facilities, primarily

24   polystyrene.
                                                        519

 1         MR. TERRIE:   Yeah, the 10 facilities

 2   that my colleague mentioned, they are

 3   directly impacted by this ban if it were to

 4   go into effect.   Now, they do have other

 5   facilities that make other materials, but the

 6   10 that we listed are the ones that would be

 7   impacted.

 8         ASSEMBLYMAN RA:   Thank you.

 9         CHAIRWOMAN KRUEGER:    Thank you.    Thank

10   you very much.

11         MS. GORMAN:   Thank you.

12         Our next testifier is Green Education

13   and Legal Fund, Mark Dunlea, followed by

14   Audubon New York, followed by the Interstate

15   Environmental Commission.   Followed by

16   tomorrow.

17         (Laughter.)

18         MR. DUNLEA:    Thank you for staying

19   here so late.

20         I just wanted to follow up on the

21   comments made by Assemblymember Englebright.

22   I think the first joint protest that my wife

23   and I jointly organized was in 1981, two

24   blocks from here, when there used to be a
                                                      520

 1   McDonald's.   And it was against Styrofoam.

 2   Very glad that we've got rid of Styrofoam

 3   here in Albany County, and look forward to

 4   success at the state level.

 5         I'm speaking today on behalf of the

 6   Green Education and Legal Fund.   I'm also a

 7   member of the steering committee at

 8   350 New York City.   I help coordinate

 9   legislative issues for the People of Albany

10   United for Safe Energy.    And I'm part of the

11   Action Committee for Extinction Rebellion of

12   the Capital District.

13         I've appreciated the comments made

14   this evening which shows the serious level

15   that the Legislature attaches to the climate

16   change.   Unfortunately, the situation is

17   actually much worse.    The IPCC has warned

18   that we have 11 years left for unprecedented

19   coordinated action on climate change.    A few

20   months ago a Harvard study said no, that

21   timeline is probably closer to five years.

22   And then right before the recent conference

23   in Spain, a number of the most prominent

24   climate scientists in Europe came out and
                                                      521

 1   said, actually, we worry that we've already

 2   passed the tipping point.

 3         We need to act a whole lot faster than

 4   we're acting.   I particularly responded to

 5   the comments made by Assemblymember Carroll

 6   that the reality is that New York State only

 7   has 4.5 percent of the state's electricity

 8   coming from wind and solar.   That's

 9   4.5 percent 17 years after Governor Pataki

10   set goals for renewable energy.

11         In order to hit the 70 percent by

12   2030, we're going to have to hit that

13   4.5 percent -- that took us 17 years -- on an

14   annual basis.

15         I have a lot of skepticism about the

16   pronouncement from the Governor that we're

17   investing $33 billion over the next

18   five years on renewable energy.   I'd like to

19   see that documented.   I had a consultant

20   position this summer trying to document how

21   much the state is spending on renewable

22   energy.   Talked to everybody -- the Governor,

23   the State Comptroller, legislative staff,

24   NYSERDA, Public Service Commission.    No one
                                                      522

 1   could give a firm answer.

 2          The closest, most definitive answer

 3   was $190 million.   If you look at some of the

 4   financial audits of NYSERDA, maybe it's

 5   closer to 400 to 500 million.   That's a lot

 6   different than the 6 billion that they're

 7   claiming they're spending on an annual basis.

 8          We started off this hearing at 11 a.m.

 9   this morning with some of my colleagues from

10   the Campaign for a Green New Deal doing a

11   little chanting to get the excitement level

12   up.   They were calling for a $10 billion

13   investment in the Green New Deal.   We hope

14   you support that.

15          We also hope that you support the

16   $1 billion that a somewhat quieter group from

17   New York Renews is encouraging.

18          On the $33 billion, if that's true, we

19   want to see how much of that complies with

20   the goal of 35 percent of that $33 billion

21   being dedicated to disadvantaged communities.

22          Senator Krueger asked a question about

23   how is RGGI complying with CLCPA.   One of the

24   things I was very curious about in the CLCPA
                                                        523

 1   was the repeated reference to the social cost

 2   of carbon.   The Governor used the social cost

 3   of carbon to provide the $7.6 billion nuclear

 4   bailout.   That's about -- I think $45 a ton

 5   was the figure he's using.    Right now RGGI is

 6   at $6 a ton.    So if now the state policy is

 7   $45 a ton for carbon, how are we raising RGGI

 8   from $6 a ton to $45?

 9         Certainly applaud Senator Krueger and

10   the rest of the Senate Democrats for their

11   leadership on trying to divest the state

12   pension funds from fossil fuels.    We would

13   recommend you include that in the

14   State Budget.    I started testifying 20 years

15   ago about a state carbon tax when Senator

16   Owen Johnson wanted to know why we thought

17   carbon was bad, since trees like it so much.

18   But we do hope we advance that.

19         Expand the Bottle Bill.     Do the ban on

20   fracking, making it permanent.     Deal with the

21   issue of fracking waste.

22         On Sheridan Avenue, we want to applaud

23   you last year for stopping the new

24   fracked-gas turbines that they were going to
                                                       524

 1   use for a microgrid.    However, we still have

 2   six gas boilers there.   And we hope you'll go

 3   to the next step and actually move to make

 4   this whole system renewable energy, how we

 5   heat and cool the state energy complex --

 6   which they're presently continuing to -- we

 7   are requesting the $600,000 for a feasibility

 8   study on how we can go to renewable energy to

 9   heat and cool these buildings, particularly

10   looking at geothermal.

11         And I have a lot more to say, but my

12   time is up.   And thank you for staying so

13   late to listen to us.

14         CHAIRWOMAN KRUEGER:     Thank you.

15         CHAIRWOMAN WEINSTEIN:     Thank you.

16         CHAIRWOMAN KRUEGER:     Questions?   Then

17   thank you very much, Mark.    Appreciate it.

18         All right, now we have the Audubon

19   New York -- Society of New York, right?      I

20   thought "Society" was in there somewhere.

21   And then followed by the Interstate

22   Environmental Commission.

23         MS. McGRATH:     Well, good evening, and

24   thank you very much for the opportunity to
                                                       525

 1   testify.    I am Erin McGrath.   I'm the policy

 2   manager for Audubon New York, which is the

 3   state program of the National Audubon

 4   Society.    I am here testifying on behalf of

 5   our 85,000 members, our 27 chapters, and our

 6   seven centers and sanctuaries.

 7         Audubon's mission is to protect birds

 8   and the places they need, and we have enjoyed

 9   a longstanding and productive relationship

10   with New York State.   And we thank you all

11   for supporting our mission.

12         This year's budget is very exciting.

13   We're very pleased to see the inclusion of

14   3 billion for the "Restore Mother Nature"

15   Bond Act.    This funding supports projects

16   that are very special to Audubon that promote

17   habitat restoration, improve coastal

18   resiliency, and aid climate adaptation

19   efforts.    These are good for birds and the

20   places they need, as well as our local

21   communities that depend on them.

22         Investments in eco-based restoration

23   provide multiple benefits, including

24   increased habitat for wildlife, more
                                                     526

 1   sustainable fisheries, opportunities for

 2   recreation and tourism, and increased

 3   resiliency in the face of climate change.

 4         We ask that the Legislature support

 5   the creation of the bond act and dedicate a

 6   portion of the funding to protecting the

 7   habitat of endangered and threatened species,

 8   restoring our salt marshes, improving the

 9   resiliency of our Great Lakes, and managing

10   our forests for improved water quality and

11   flood control.

12         We are also interested to see the

13   Executive Budget proposal that proposes to

14   streamline the siting and development process

15   for renewable energy.   Wind and solar are

16   clean sources of energy that have few

17   negative impacts, and we're very supportive

18   of their development, but we need to make

19   sure that while we're developing these

20   projects that we're making sure that we don't

21   harm the environment and particularly

22   endangered and threatened species.

23         These projects do have the potential

24   to negatively affect wildlife through direct
                                                       527

 1   mortality and habitat degradation, but there

 2   are a lot of things we can do to prevent

 3   that.

 4           We recognize that identifying

 5   locations for renewable energy is very

 6   challenging.    We have very few transmission

 7   lines coming from upstate to downstate, and

 8   we need to figure out how to get all of the

 9   renewable energy up there to down here.     But

10   we do recommend that while we're looking at

11   that, that we do our part to protect

12   endangered and threatened wildlife.     We can

13   minimize the negative impacts by doing

14   thorough site inspections, avoiding high-risk

15   areas, and committing to adequate mitigation

16   for unavoidable risk.

17           So what this really means is that we

18   need the state to partner with us and work

19   with us from the beginning.   We would ask the

20   state to convene an environmental technical

21   working group that can advise on the location

22   of priority renewable energy sites and also

23   the development of the associated

24   procurements.    We know this works because we
                                                         528

 1   used it for the offshore wind procurements

 2   that are currently in place.     That was a very

 3   successful partnership, and we believe that

 4   it would also benefit land-based renewable

 5   projects.

 6         We also recommend that the state

 7   develop a mitigation fund to address impacts

 8   on threatened and endangered species.    We

 9   know that project developers are struggling

10   with mitigation efforts, and we want to help

11   them to make the best of that.    So we believe

12   if we set up this mitigation fund and connect

13   project developers with groups like Audubon

14   and other wildlife conservation societies, we

15   can actually accelerate the deployment of

16   renewable energy while protecting our

17   wildlife as well.

18         We were also very thrilled to see that

19   New York State is stepping up to protect our

20   wetlands.   I know my colleagues spoke at

21   length on this, but wetlands are really where

22   you can get a lot of bang for your buck.      You

23   can protect threatened and endangered

24   species, you can improve water quality, you
                                                      529

 1   can control flooding -- it's a great place to

 2   spend your dollars.

 3         But when we're doing that, especially

 4   under the bond act and other proposed

 5   initiatives, we need to make sure we're

 6   targeting all of the state's wetlands.     And

 7   right now the DEC can't regulate the

 8   majority -- much of our wetlands because of

 9   the mapping requirement.

10         So we strongly support the effort to

11   drop the maps and only use them for

12   educational purposes.   We think this is

13   really important in light of the rollback of

14   the "Waters of the United States" rule and

15   will ensure that New York State remains a

16   leader in protecting the environment.

17         And last but not least, we were

18   pleased to see that there is still

19   $300 million for the EPF in light of the

20   state's deficit.   This funding supports

21   really critical programs, and we think it

22   will work hand in hand with the bond act as

23   we work to support the environment.

24         In particular, we'd like to call out
                                                        530

 1   the ZBGA line because it provides critical

 2   funding for our Audubon Centers and

 3   Sanctuaries.   Without this funding, our

 4   educational programming would suffer and

 5   impact the communities that rely on us to

 6   educate their children about the environment

 7   and also get a few minutes off.

 8         Within the EPF, we are also asking the

 9   Legislature to support the Regenerate

10   New York program, funding for the Delaware

11   River Basin Commission, and funding for the

12   Ocean and Great Lakes Program.

13         And I'll close by echoing my

14   colleagues in saying that we do oppose using

15   the EPF for staffing.   We believe that that's

16   critically important and that the DEC and

17   Parks have as much funding and staff as they

18   need, but we don't believe that should be

19   coming from dedicated capital funding.     So we

20   hope we can find an alternate solution to

21   using the EPF for staffing.

22         CHAIRWOMAN KRUEGER:     Thank you.

23         MS. McGRATH:   Thank you.

24         CHAIRWOMAN KRUEGER:     Any questions?
                                                      531

 1         Steve Englebright.

 2         ASSEMBLYMAN ENGLEBRIGHT:   First I just

 3   want to say thank you for what you do every

 4   day, for not just the birds but the people of

 5   New York who benefit from your many programs

 6   and activities.

 7         I am very concerned about the ZBGA

 8   program and I'm pleased that you spoke to the

 9   this -- urging us to increase the line.   The

10   last time I looked, it was about $16 million.

11   The Executive is proposing to cut it, if I'm

12   remembering correctly, by $2 million.

13         MS. McGRATH:   That's correct.

14         ASSEMBLYMAN ENGLEBRIGHT:   That is a

15   savage cut.   And when Commissioner Kulleseid

16   was here before, I pointed out the obvious,

17   which is that there are two great parks

18   systems in the state.   One is the State Parks

19   system by name itself, and the other is the

20   galaxy of more than a hundred organizations

21   that are zoos or botanical gardens,

22   aquariums, nature preserves, including the

23   Audubon -- Montezuma Audubon Center in

24   Savannah, the Constitution Marsh in Garrison,
                                                         532

 1   and next to Theodore Roosevelt's grave, the

 2   TR Sanctuary, the first bird sanctuary of

 3   National Audubon in America.

 4            You don't protect those and make more

 5   available to the public by cutting.     So

 6   please -- we're going to do what we can to

 7   reopen this question, but please communicate

 8   with your fellow organizations.      We need a

 9   unified front in order to be successful in

10   restoring this funding -- and, as you rightly

11   suggest, increasing it.

12            MS. McGRATH:   Of course.   And we're

13   definitely looking forward to working with

14   the Legislature to restore that funding.

15   It's very critical to us and critical to all

16   of our partners.    So we'll be working closely

17   with you.

18            ASSEMBLYMAN ENGLEBRIGHT:    Thank you

19   again.

20            MS. McGRATH:   Thank you.

21            CHAIRWOMAN KRUEGER:    Thank you very

22   much.    Appreciate your staying all this time.

23            And last but not least, the Interstate

24   Environmental Commission.      I'm going to guess
                                                      533

 1   you are Phillip as opposed to Evelyn.

 2         MR. DeGAETANO:    I am.

 3         CHAIRWOMAN KRUEGER:     Nice to see you

 4   tonight.

 5         That was a leap, thank you.

 6         MR. DeGAETANO:    It's nice to be here,

 7   and thank you for staying so late.

 8         I'm Philip DeGaetano.     I'm a recently

 9   appointed commissioner to the Interstate

10   Environmental Commission.   And obviously I

11   have a lot to learn about how to get into an

12   earlier slot on your testimony.

13         And I want to thank you,

14   Senator Krueger, Assemblywoman Weinstein,

15   Senator Kaminsky, Assemblyman Englebright,

16   and members of the Legislature for allowing

17   me the opportunity to testify on behalf of

18   the Interstate Environmental Commission.

19         The IEC joins with others who have

20   testified today in commending the Governor

21   and the Legislature for continuing to

22   demonstrate, through the budget, the

23   commitment to protecting New York's

24   environment.   The funding appropriated
                                                     534

 1   through the budget actions demonstrates

 2   New York's understanding of the need to

 3   invest in resources in order to protect and

 4   restore New York's environment.

 5         The IEC is a tristate water pollution

 6   control agency similarly committed to

 7   protecting and conserving and restoring

 8   New York's environment, particularly in water

 9   quality.   Our written testimony provides

10   details of the diverse array of activities

11   that the commission is involved in in the IEC

12   district, which is centered in New York

13   Harbor but includes Long Island Sound, the

14   North Shore embayments, South Shore Estuary,

15   the Hudson River, and portions of Connecticut

16   and New Jersey.

17         Our capabilities are that we have and

18   are developing and would hope to expand at

19   the commission aligned with the priorities

20   highlighted in the Governor's Revive Mother

21   Nature initiatives.   These include expanding

22   our monitoring and analytical services

23   capabilities at our laboratory for nutrients,

24   cytotoxins associated with harmful algal
                                                     535

 1   blooms, expanding continuous monitoring in

 2   New York Harbor and Long Island Sound,

 3   exploring eelgrass restoration sites, and

 4   developing microbial source tracking

 5   techniques to identify sources of pathogens

 6   entering and degrading our waterways.

 7         The commission operates a certified

 8   lab at the College of Staten Island on

 9   Staten Island.   The laboratory is fully

10   certified by the New York State Health

11   Department, and the laboratory is dedicated

12   to producing technically defensible

13   environmental data through sound science and

14   a comprehensive quality assurance program.

15         While the majority of our funding

16   comes from other sources, primarily federal

17   Clean Water Act grants, state funding is

18   critical to enable the commission to meet its

19   level of effort funding state resources

20   that's necessary to match these funds.     In

21   2019 the IEC was awarded just over a million

22   dollars in federal funds for Section 106.

23   And in order to maintain this eligibility, we

24   have to maintain a state match of $214,000 to
                                                          536

 1   be funded through a cooperative agreement

 2   with each of the member states, of which

 3   New York's share is 45 percent.

 4            So we're calling your attention today

 5   to the fact that the Executive Budget as

 6   proposed only includes $41,600 for the

 7   Interstate Environmental Commission.        And in

 8   order to meet the 45 percent share for

 9   New York, that would have to be increased to

10   $96,323.    This level of funding is critical

11   to ensure IEC's continued eligibility to

12   receive the federal funds.

13            So on behalf of the IEC, I'd like to

14   thank you for your attention and this

15   opportunity to testify before you this

16   evening.    Thank you.

17            CHAIRWOMAN KRUEGER:     Any questions?

18            We appreciate your staying this late

19   for us.    Thank you very much.

20            MR. DeGAETANO:    Thank you, and good

21   night.

22            CHAIRWOMAN KRUEGER:     And this

23   officially ends the first budget hearing of

24   the 2020-'21 cycle.       The EnCon hearing is
                                                   537

 1   over, and we will be back in this room

 2   starting at 9:30 tomorrow morning, and we

 3   will get to Transportation and the MTA.

 4         Thank you, everyone.   Thank you for

 5   all staying.

 6         ASSEMBLYMAN ENGLEBRIGHT:   Thank you.

 7         (Whereupon, at 7:56 p.m., the budget

 8   hearing concluded.)

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