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

                                  4620

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                             April 13, 2011
                               ___________

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

AN ACT to amend the public authorities law and the environmental conser-
  vation  law,  in  relation  to establishing the state diesel emissions
  reduction revolving loan fund

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  The  public  authorities  law  is amended by adding a new
section 1285-s to read as follows:
  S 1285-S. DIESEL EMISSIONS REDUCTION PROGRAM. 1.  THE  CORPORATION  IS
AUTHORIZED  TO  UNDERTAKE  A  PROGRAM TO PROVIDE FINANCIAL ASSISTANCE TO
STATE AGENCIES AND ELIGIBLE RECIPIENTS  TO  ENCOURAGE  AND  SUPPORT  THE
PURCHASE  OF  NEW  AND  RETROFITTING  OF EXISTING HEAVY DUTY VEHICLES IN
ACCORDANCE WITH THE PROVISIONS OF THIS SECTION.
  2. AS USED IN THIS SECTION, THE FOLLOWING  TERMS  HAVE  THE  FOLLOWING
MEANINGS:
  (A)  "BEST  AVAILABLE RETROFIT TECHNOLOGY" SHALL HAVE THE SAME MEANING
AS SUCH TERM IS DEFINED IN SECTION 19-0323 OF THE ENVIRONMENTAL  CONSER-
VATION LAW AND REGULATIONS PROMULGATED THEREUNDER.
  (B)  "COMMISSIONER"  SHALL  MEAN  THE  COMMISSIONER  OF  ENVIRONMENTAL
CONSERVATION.
  (C) "ELIGIBLE PROJECT" SHALL MEAN  A  PROJECT  FOR  THE  PURCHASE  AND
INSTALLATION  OF BEST AVAILABLE RETROFIT TECHNOLOGY FOR HEAVY DUTY VEHI-
CLES, INCLUDING THE RETROFIT OF VEHICLES REQUIRED  PURSUANT  TO  SECTION
19-0323  OF  THE ENVIRONMENTAL CONSERVATION LAW, AND NONROAD VEHICLES AS
DEFINED BY 42 USC SECTION 7550.
  (D) "ELIGIBLE RECIPIENT" SHALL MEAN ANY PERSON, MUNICIPALITY OR  STATE
AGENCY  SUBJECT TO SECTION 19-0323 OF THE ENVIRONMENTAL CONSERVATION LAW
AND ANY PERSON, MUNICIPALITY OR STATE AGENCY THAT IS AN ELIGIBLE  ENTITY

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07382-01-1

              

S. 4620                             2

PURSUANT  TO  THE  ENERGY  POLICY ACT OF 2005 DIESEL EMISSIONS REDUCTION
PROGRAM.
  (E)  "HEAVY  DUTY VEHICLE" OR "VEHICLE" SHALL HAVE THE SAME MEANING AS
SUCH TERM IS DEFINED IN SECTION 19-0323 OF THE  ENVIRONMENTAL  CONSERVA-
TION LAW.
  (F)  "RETROFIT"  SHALL  MEAN THE ADDITION OF NEW OR ENHANCED POLLUTION
CONTROL AFTER TREATMENT EQUIPMENT TO DIESEL ENGINES, UPGRADING A  DIESEL
ENGINE  TO  A  CLEANER  CONFIGURATION,  AND  EARLY  REPLACEMENT OF OLDER
ENGINES WITH NEWER CLEANER ENGINES.
  3. (A) THERE IS HEREBY ESTABLISHED IN THE CUSTODY OF THE CORPORATION A
FUND TO BE KNOWN AS  THE  DIESEL  EMISSIONS  REDUCTION  REVOLVING  FUND.
MONEYS  IN THE DIESEL EMISSIONS REDUCTION REVOLVING FUND SHALL BE SEGRE-
GATED FROM ALL OTHER FUNDS OF OR  IN  THE  CUSTODY  OF  THE  CORPORATION
SUBJECT  TO  ANY  RIGHTS OF HOLDERS OF CORPORATION BONDS OR NOTES ISSUED
FOR THE PURPOSES OF THIS  SECTION.    MONEYS  IN  THE  DIESEL  EMISSIONS
REDUCTION  REVOLVING  FUND  SHALL  ONLY  BE  USED IN ACCORDANCE WITH THE
PROVISIONS OF THIS SECTION PROVIDED, HOWEVER, THAT AN AMOUNT  OF  UP  TO
FOUR  PERCENT OF THE FUND MAY BE UTILIZED ANNUALLY BY THE CORPORATION TO
PAY FOR COSTS OF ADMINISTERING THE FUND.
  (B) THE FUND SHALL CONSIST OF THE FOLLOWING:
  (I) NOTWITHSTANDING ANY LAW  TO  THE  CONTRARY,  UP  TO  FOUR  MILLION
DOLLARS      FROM     STATE     FISCAL     YEAR     NINETEEN     HUNDRED
NINETY-SEVEN--NINETY-EIGHT APPROPRIATIONS, OR SUBSEQUENT REAPPROPRIATION
FOR SUCH PROJECT  PURSUANT  TO  SECTION  56-0603  OF  THE  ENVIRONMENTAL
CONSERVATION  LAW,  UP  TO  FOUR  MILLION DOLLARS FROM STATE FISCAL YEAR
NINETEEN HUNDRED NINETY-SEVEN--NINETY-EIGHT  APPROPRIATIONS,  OR  SUBSE-
QUENT  REAPPROPRIATION  FOR  SUCH PROJECT PURSUANT TO SECTION 56-0605 OF
THE ENVIRONMENTAL CONSERVATION LAW, UP TO TWO MILLION DOLLARS  FROM  THE
STATE  FISCAL YEAR NINETEEN HUNDRED NINETY-SEVEN--NINETY-EIGHT APPROPRI-
ATIONS, OR SUBSEQUENT  REAPPROPRIATION  FOR  SUCH  PROJECT  PURSUANT  TO
SECTION 56-0607 OF THE ENVIRONMENTAL CONSERVATION LAW;
  (II)  ALL  MONEYS  APPROPRIATED FOR THE PAYMENT OF THE COSTS OF DIESEL
EMISSIONS REDUCTION ACTIVITIES AND EQUIPMENT PURSUANT TO SECTION ONE  OF
CHAPTER  FIFTY-FIVE OF THE LAWS OF TWO THOUSAND SEVEN, AS REAPPROPRIATED
BY CHAPTER FIFTY-FIVE OF THE LAWS OF TWO THOUSAND NINE, AND  AS  MAY  BE
SUBSEQUENTLY REAPPROPRIATED;
  (III) ALL MONEYS APPROPRIATED BY THE STATE LEGISLATURE FOR THE PURPOSE
OF  THE  DIESEL  EMISSIONS  REDUCTION REVOLVING FUND OR OTHERWISE TRANS-
FERRED BY THE STATE FOR DEPOSIT THEREIN BY THE COMPTROLLER  AS  REQUIRED
BY LAW;
  (IV)  PAYMENTS  OF  PRINCIPAL AND INTEREST MADE BY ELIGIBLE RECIPIENTS
PURSUANT TO LOAN OR OTHER AGREEMENTS ENTERED INTO PURSUANT  TO  SUBDIVI-
SION SIX OF THIS SECTION; PROVIDED, HOWEVER, IF SUCH LOANS WERE FINANCED
BY  THE  ISSUANCE  OF BONDS OR NOTES OF THE CORPORATION, DEPOSIT OF SUCH
PAYMENTS INTO THE FUND SHALL BE SUBJECT TO THE RIGHTS OF THE HOLDERS  OF
SUCH BONDS OR NOTES TO RECEIVE SUCH MONIES;
  (V) INVESTMENT EARNINGS ON AMOUNTS IN THE FUND;
  (VI) ANY OTHER PAYMENTS RECEIVED FROM RECIPIENTS PURSUANT TO A LOAN OR
OTHER  AGREEMENT  MADE  PURSUANT  TO SUBDIVISION SIX OF THIS SECTION FOR
COSTS OF MANAGING AND ADMINISTERING THE PROGRAM; AND
  (VII) THE PROCEEDS OF BONDS OR NOTES ISSUED  BY  THE  CORPORATION  FOR
PURPOSES OF PROVIDING FINANCIAL ASSISTANCE TO ELIGIBLE RECIPIENTS.
  (C)  ADDITIONALLY,  THE  FOLLOWING  SOURCES  MAY BE DEPOSITED INTO THE
FUND, SUBJECT TO APPROPRIATION OR TRANSFER:
  (I) ALL OR A PORTION OF MONEYS PAID  TO  THE  STATE  PURSUANT  TO  ANY
FUTURE  REAUTHORIZATION,  REAPPROPRIATION, EXTENSION OR EXPANSION OF THE

S. 4620                             3

FEDERAL DIESEL EMISSION REDUCTION ACT OR ADOPTION OF ANY FEDERAL ACT  OF
SUBSTANTIALLY SIMILAR PURPOSE;
  (II)  ALL  OR  A  PORTION  OF  MONEYS  PAID  TO  THE STATE PURSUANT TO
SUBSECTION THREE OF STATE AND TRIBAL ASSISTANCE GRANTS INCLUDED IN TITLE
VII OF THE AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009; AND
  (III) ANY OTHER MONEYS PAID TO THE STATE FOR DEPOSIT IN THE FUND.
  4. MONEYS IN THE DIESEL EMISSIONS  REDUCTION  REVOLVING  FUND  MAY  BE
INVESTED  AS  PROVIDED  IN  SUBDIVISION  FOUR  OF SECTION TWELVE HUNDRED
EIGHTY-FOUR AND SUBDIVISION SIX OF SECTION TWELVE HUNDRED  EIGHTY-FIVE-J
OF THIS TITLE.
  5.  MONEYS  OF  THE  FUND  SHALL BE AVAILABLE ONLY FOR DISTRIBUTION TO
ELIGIBLE PROJECTS PURSUANT TO THIS SECTION THAT ARE APPROVED IN  CONSUL-
TATION WITH THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION. THE DEPARTMENT
OF  ENVIRONMENTAL  CONSERVATION  SHALL,  IN CONSULTATION WITH THE CORPO-
RATION, DEVELOP GUIDANCE FOR SELECTION OF ELIGIBLE PROJECTS, WHICH SHALL
ESTABLISH ELIGIBILITY CRITERIA FOR DISTRIBUTION OF MONEYS  CONTAINED  IN
THE  FUND CONSISTENT WITH THE PROVISIONS OF THIS SECTION. SUBJECT TO ANY
APPLICABLE FEDERAL  REQUIREMENTS,  PRIORITY  SHALL  BE  GIVEN  TO  THOSE
PROJECTS THAT WILL UTILIZE BEST AVAILABLE RETROFIT TECHNOLOGY AND:
  (A) ARE SUBJECT TO THE REQUIREMENTS OF SECTION 19-0323 OF THE ENVIRON-
MENTAL CONSERVATION LAW;
  (B) MAXIMIZE PUBLIC HEALTH BENEFITS;
  (C)  PROVIDE  THE  MOST COST-EFFECTIVE EXPENDITURE OF FUNDS, INCLUDING
REDUCTIONS IN DIESEL EMISSIONS PER DOLLAR EXPENDED; AND
  (D) SERVE AREAS IN NEW YORK THAT ARE:
  (I) IN NON ATTAINMENT OF THE  NATIONAL  AMBIENT  AIR  QUALITY  PRIMARY
STANDARDS ESTABLISHED FOR PARTICULATE MATTER OR OZONE;
  (II)  ENVIRONMENTAL  JUSTICE  AREAS AS DESIGNATED BY THE DEPARTMENT OF
ENVIRONMENTAL CONSERVATION; OR
  (III) IMPACTED BY HIGHER LEVELS OF VEHICLE TRAFFIC; OR INDUSTRIAL  AND
COMMERCIAL  AREAS  INCLUDING  BUT  NOT LIMITED TO PORTS, AIRPORTS, TRUCK
STOPS, RAIL YARDS, TERMINALS AND DISTRIBUTION CENTERS.
  6. MONEYS IN THE FUND SHALL BE APPLIED BY THE CORPORATION  TO  PROVIDE
FINANCIAL ASSISTANCE TO ELIGIBLE RECIPIENTS FOR ELIGIBLE PROJECTS AND TO
PROVIDE  FOR  THE ADMINISTRATIVE AND MANAGEMENT COSTS OF THE PROGRAM. AS
USED IN THIS SECTION "FINANCIAL ASSISTANCE TO ELIGIBLE RECIPIENTS" MEANS
ANY ONE OR MORE OF THE FOLLOWING:
  (A)  MAKING  LOANS  TO  ELIGIBLE  RECIPIENTS  FOR  ELIGIBLE  PROJECTS,
PROVIDED  SUCH  LOANS (I) ARE MADE AT MARKET OR BELOW MARKET RATES, (II)
DO NOT HAVE A FINAL MATURITY OF MORE THAN THE PERIOD OF PROBABLE USEFUL-
NESS AS SET FORTH IN THE LOCAL FINANCE LAW, AND (III) HAVE PRINCIPAL AND
INTEREST PAYMENTS WHICH COMMENCE NOT LATER THAN ONE YEAR AFTER INSTALLA-
TION OF THE ELIGIBLE PROJECT;
  (B) BUYING OR REFINANCING DEBT OBLIGATIONS OF ELIGIBLE  RECIPIENTS  AT
MARKET OR BELOW MARKET RATES;
  (C)  GUARANTYING,  OR PURCHASING INSURANCE OR OTHER CREDIT ENHANCEMENT
FOR ELIGIBLE RECIPIENT OBLIGATIONS WHERE SUCH ACTION WOULD IMPROVE CRED-
IT MARKET ACCESS FOR OR REDUCE INTEREST RATES ON SUCH ELIGIBLE RECIPIENT
OBLIGATIONS;
  (D) PROVIDING A SOURCE OF REVENUE OR SECURITY FOR PAYMENT OF PRINCIPAL
AND INTEREST ON BONDS OR NOTES ISSUED BY THE CORPORATION IF THE PROCEEDS
OF THE SALE OF SUCH BONDS OR NOTES WILL BE DEPOSITED IN THE FUND;
  (E) PROVIDING INTEREST RATE SUBSIDY ALLOCATIONS TO SUBSIDIZE LOANS  TO
ELIGIBLE RECIPIENTS MADE FROM THE PROCEEDS OF THE CORPORATION'S BONDS OR
NOTES;
  (F) PROVIDING GRANTS AND PRINCIPAL FORGIVENESS;

S. 4620                             4

  (G)  USING  INVESTMENT EARNINGS ON MONEYS IN THE FUND TO PAY, PURSUANT
TO SUBDIVISION SEVEN OF THIS SECTION, THE COSTS OF THE  CORPORATION  AND
THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION OF ADMINISTERING AND MANAG-
ING THE PROGRAM DESCRIBED IN THIS SECTION.
  7.  (A)  NOTWITHSTANDING  ANY  PROVISIONS  OF LAW TO THE CONTRARY, THE
CORPORATION SHALL DISTRIBUTE MONEYS CONTAINED IN THE FUND AS FOLLOWS:
  (I) UNTIL MARCH THIRTY-FIRST, TWO THOUSAND TWELVE, TWENTY  PERCENT  OF
THE  FUND  SHALL  BE  USED  TO  PROVIDE GRANTS TO STATE AGENCIES FOR THE
RETROFITTING OF VEHICLES SUBJECT TO SECTION 19-0323 OF THE ENVIRONMENTAL
CONSERVATION LAW;
  (II) THE REMAINDER OF THE FUND SHALL  BE  USED  TO  PROVIDE  FINANCIAL
ASSISTANCE  TO  ELIGIBLE  RECIPIENTS FOR ELIGIBLE PROJECTS THAT MEET THE
GOAL OF EMISSIONS REDUCTION IN ACCORDANCE WITH THE  PROVISIONS  OF  THIS
SECTION AND IN ACCORDANCE WITH ANY APPLICABLE FEDERAL REQUIREMENTS.
  8.  ELIGIBLE  RECIPIENTS MAY SUBMIT APPLICATIONS TO THE CORPORATION IN
SUCH MANNER AS THE CORPORATION DIRECTS. ALL APPLICATIONS SHALL  INCLUDE,
AT A MINIMUM, THE FOLLOWING INFORMATION:
  (A)  ANY  INFORMATION  REQUIRED  TO DEMONSTRATE ELIGIBILITY TO RECEIVE
FEDERAL ASSISTANCE UNDER ANY FEDERAL PROGRAM LISTED IN SUBDIVISION THREE
OF THIS SECTION;
  (B) CALCULATION OF THE EXTENT TO WHICH INSTALLATION  OF  THE  PROPOSED
PROJECT WILL REDUCE DIESEL EMISSIONS;
  (C) THE AIR QUALITY DESIGNATION OF THE AREA IN WHICH VEHICLES PROPOSED
TO BE RETROFITTED OR REPLACED OPERATE;
  (D)  EXTENT  TO WHICH THE PROPOSED PROJECT MEETS THE PRIORITY CRITERIA
OF SUBDIVISIONS FOUR AND FIVE OF THIS SECTION; AND
  (E) ANY OTHER INFORMATION THAT THE CORPORATION REQUIRES.
  9. THE CORPORATION, IN CONSULTATION WITH THE  DEPARTMENT  OF  ENVIRON-
MENTAL CONSERVATION, IS AUTHORIZED TO:
  (A)  CONSULT WITH ANY OTHER STATE AGENCY OR PUBLIC AUTHORITY WHICH THE
CORPORATION DEEMS APPROPRIATE IN THE DEVELOPMENT OF THE DIESEL  RETROFIT
EMISSIONS REDUCTION PROGRAM DEVELOPED PURSUANT TO THIS SECTION; AND
  (B)  PREPARE,  IN CONSULTATION WITH SUCH AGENCIES AND AUTHORITIES, AND
MAKE AVAILABLE TO THE PUBLIC, DIESEL EMISSIONS REDUCTION PROGRAM MANUALS
AND BROCHURES FOR THE PURPOSE OF ENSURING THAT THE STANDARDS AND  CRITE-
RIA  APPLICABLE  TO THE PROGRAM ARE AVAILABLE TO PERSONS WHO MAY WISH TO
PARTICIPATE IN THE PROGRAM, TO FACILITATE THE GOALS OF THE PROGRAM.
  10. IN ADDITION TO THE POWERS GRANTED TO THE CORPORATION ELSEWHERE  IN
THIS  CHAPTER, THE CORPORATION MAY MAKE LOANS TO ELIGIBLE RECIPIENTS FOR
PURPOSES OF FINANCING ELIGIBLE PROJECTS FOR WHICH THE FUND MAY BE  USED,
SUBJECT  TO  THE  LIMITATIONS  OF SUBDIVISION SEVEN OF THIS SECTION, MAY
ACCEPT THE OBLIGATIONS OF ANY MUNICIPALITY AS SECURITY FOR THE REPAYMENT
OF A LOAN TO AN ELIGIBLE RECIPIENT,  AND  MAY  ASSIGN  AND  PLEDGE  SUCH
ELIGIBLE  RECIPIENT  OBLIGATIONS  AND LOAN AGREEMENTS FOR THE BENEFIT OF
THE HOLDER OF OBLIGATIONS OF THE CORPORATION FROM THE PROCEEDS OF  WHICH
SUCH  LOANS  ARE  MADE.  LOAN  PROCEEDS  MAY BE DISBURSED TO AN ELIGIBLE
RECIPIENT IN ACCORDANCE WITH SUCH RESTRICTIONS AS MAY BE IMPOSED BY  THE
CORPORATION  IN  CONNECTION  WITH SUCH LOAN OR OBLIGATIONS OF THE CORPO-
RATION FROM THE PROCEEDS OF WHICH SUCH LOAN IS  MADE.  IN  THE  EVENT  A
MUNICIPALITY SHALL FAIL TO MAKE ANY PAYMENT DUE THE CORPORATION PURSUANT
TO  ANY  LOAN AGREEMENT, FINANCING AGREEMENT, OR OTHER OBLIGATION OF THE
MUNICIPALITY SOLD TO THE CORPORATION  OR  ISSUED  AS  SECURITY  FOR  THE
UNDERTAKING OF THE MUNICIPALITY THEREUNDER, THE CORPORATION SHALL CERTI-
FY  TO  THE  COMPTROLLER,  AND NOTIFY THE CHAIRMAN OF THE SENATE FINANCE
COMMITTEE, THE CHAIRMAN OF THE ASSEMBLY WAYS AND  MEANS  COMMITTEE,  THE
DIRECTOR  OF  THE  DIVISION  OF THE BUDGET AND THE GOVERNING BODY OF THE

S. 4620                             5

MUNICIPALITY THAT SUCH MUNICIPALITY HAS FAILED  TO  MAKE  SUCH  PAYMENT.
SUCH  CERTIFICATE  SHALL  BE  IN  SUCH  FORM AS MAY BE DETERMINED BY THE
CORPORATION PROVIDED SUCH CERTIFICATE SHALL SPECIFY THE EXACT AMOUNT  OF
DEBT  SERVICE  AND  SURCHARGE,  IF  APPLICABLE, REQUIRED TO SATISFY SUCH
MUNICIPALITY'S UNPAID OBLIGATION. THE COMPTROLLER, UPON RECEIPT OF  SUCH
CERTIFICATE  FROM  THE  CORPORATION,  IS AUTHORIZED TO AND SHALL, TO THE
EXTENT NOT  OTHERWISE  PROHIBITED  BY  LAW  AND  SUBJECT  TO  ANY  OTHER
PROVISION  OF  LAW  PROVIDING FOR WITHHOLDING OF PAYMENTS TO THE MUNICI-
PALITY WHICH TAKE PRECEDENCE OVER THIS SUBDIVISION, WITHHOLD  FROM  SUCH
MUNICIPALITY  THE NEXT SUCCEEDING PAYMENTS OF STATE AID OR LOCAL ASSIST-
ANCE OTHERWISE PAYABLE TO IT TO THE EXTENT NECESSARY TO MEET THE  CERTI-
FIED AMOUNT OF DEBT SERVICE AND SURCHARGE, IF APPLICABLE, DUE THE CORPO-
RATION  AND  SHALL  IMMEDIATELY  PAY  OVER  TO THE CORPORATION AS A DEBT
SERVICE PAYMENT ON BEHALF OF SUCH MUNICIPALITY THE AMOUNT SO WITHHELD.
  11. NO LATER THAN JANUARY THIRTY-FIRST  OF  EACH  CALENDAR  YEAR,  THE
CORPORATION  SHALL SUBMIT TO THE GOVERNOR, THE LEGISLATURE AND THE COMP-
TROLLER A DETAILED REPORT OF EXPENDITURES OF  THE  FUND.    SUCH  REPORT
SHALL INCLUDE AT A MINIMUM:
  (A) AN ACCOUNTING OF MONEYS PAID INTO THE FUND FROM STATUTORY SOURCES;
  (B) AN ACCOUNTING OF MONEYS EXPENDED FOR PURPOSES OF ADMINISTERING THE
FUND;
  (C)  AN  ACCOUNTING  OF  ALL  MONEYS  PAID OUT OF THE FUND TO ELIGIBLE
PROJECTS, ARRANGED BY PROJECT, STATUTORY PRIORITY LEVEL AND AREA OF  THE
STATE;
  (D)  AN  ESTIMATION  OF  THE AMOUNT OF DIESEL EMISSIONS REDUCED BY THE
INSTALLATION OF ELIGIBLE PROJECTS FINANCED BY THE FUND; AND
  (E) ANY DISCERNABLE OR ESTIMATED PUBLIC HEALTH BENEFIT  BROUGHT  ABOUT
BY THESE DIESEL EMISSIONS REDUCTIONS.
  S  2.  Section 56-0603 of the environmental conservation law, as added
by chapter 413 of the laws of 1996, is amended to read as follows:
S 56-0603. State clean-fueled vehicle projects.
  1.  The office of general services is authorized, consistent with  the
strategy  developed pursuant to subdivision three of section two hundred
one-a of the executive law, to conduct a project to acquire clean-fueled
vehicles [and to  develop  and  acquire  the  associated  infrastructure
including  depot  construction],  AND  THE  NEW YORK STATE ENVIRONMENTAL
FACILITIES CORPORATION IS AUTHORIZED,  CONSISTENT  WITH  SECTION  TWELVE
HUNDRED  EIGHTY-FIVE-S  OF  THE  PUBLIC  AUTHORITIES  LAW, TO DISTRIBUTE
MONIES FOR THE RETROFITTING OF HEAVY DUTY DIESEL ENGINE VEHICLES.
  2.  For the purposes of this section, the term "clean-fueled  vehicle"
shall  mean  any motor vehicle as defined in section one hundred twenty-
five of the vehicle and traffic law, that  uses  electricity,  including
electricity  generated  from  solar  energy,  either stored or generated
on-board, as its primary motive force, or that is fueled  by  compressed
natural gas, propane, methanol, hydrogen or ethanol.
  S  3.  Subdivision 1 of section 56-0605 of the environmental conserva-
tion law, as added by chapter 413 of the laws of  1996,  is  amended  to
read as follows:
  1.  The  New  York  state energy research and development authority in
cooperation with the department of transportation OR THE NEW YORK  STATE
ENVIRONMENTAL FACILITIES CORPORATION is authorized to make state assist-
ance  payments  to  "clean-fueled  buses  projects"  AND  IS AUTHORIZED,
CONSISTENT WITH SECTION  TWELVE  HUNDRED  EIGHTY-FIVE-S  OF  THE  PUBLIC
AUTHORITIES LAW, TO DISTRIBUTE MONIES FOR THE RETROFITTING OF HEAVY DUTY
DIESEL ENGINE VEHICLES.

S. 4620                             6

  S  4.  Section 56-0607 of the environmental conservation law, as added
by chapter 413 of the laws of 1996, is amended to read as follows:
S 56-0607. Other air quality projects.
  Of monies received by the state from the sale of bonds pursuant to the
Clean  Water/Clean  Air  Bond  Act of 1996, up to twenty million dollars
($20,000,000) shall be  available  for  disbursements  for  air  quality
projects pursuant to this section.
  The  commissioner is authorized in consultation with other state agen-
cies as may be necessary, to make state assistance payments or to  enter
into  contracts  in the name of the state for projects that will enhance
the quality of the state's environment  and  the  state's  air  quality,
INCLUDING  COOPERATION  WITH THE NEW YORK STATE ENVIRONMENTAL FACILITIES
CORPORATION, TO DISTRIBUTE MONIES FOR THE  RETROFITTING  OF  HEAVY  DUTY
DIESEL   ENGINE   VEHICLES,   CONSISTENT  WITH  SECTION  TWELVE  HUNDRED
EIGHTY-FIVE-S OF THE PUBLIC AUTHORITIES LAW.
  S 5. This act shall take effect immediately.