BILL NUMBER:S2417

TITLE OF BILL:

An act to amend the state finance law, in relation to establishing a
clean air account; and making an appropriation therefor

PURPOSE:

This bill will increase the Environmental Protection Fund (EPF) from
$250 million to $300 million. This additional $50 million will be used
to create a new Clean Air Account. This $50 million would be allocated
as follows:

1. $35 million to upgrade the dirtiest School boilers in the State
(Approximately 14 boilers per year);

2. $5 million for grants to School in Clean Air Non-Attainment Areas
to pay for the increased cost of Ultra Low Sulfur Diesel; and

3. $10 million to fund the initial costs of conversion to bio-fuels.

(In many cases, switching to a Bio-Fuel mixture requires the oil tank
to be cleaned out. If the tank is not cleaned, the Bio-Fuel will push
the tanks sludge into the boiler or furnace, which can inflict severe
damage).
              

SUMMARY OF PROVISIONS:

Section 1. Amends paragraph a of subdivision 2 of Section 92-s of the
State Finance Law to create a new clean air account within the EPF.

§ 2. Amends paragraph (e) of subdivision 6 of Section 92-s of the
State Finance Law to provide that moneys from the Clean Air Account
shall be allocated as follows: $35 million to upgrade the dirtiest
School boilers in the State (Approximately 14 boilers per year); $5
million for grants to School in Clean Air Non-Attainment Areas to pay
for the increased cost of Ultra Low Sulfur Diesel; and $10 million to
fund the initial costs of conversion to bio-fuels.

§ 3. Provides for an appropriation of $50 million to the credit of the
Clean Air Account of the EPF.

§ 4. Effective immediately.

EXISTING LAW:

The EPF is almost entirely funded by the Real Estate Transfer Tax
(RETT). Revenues from the RETT have grown from $371 million in SFY
2001-02 to $950 million in 2006-07. It is realistic to expect that the
RETT will continue to grow in the coming years.

The General Fund received no direct deposit of real estate transfer
tax receipts in 2006-07 nor will it in 2007-08. However, the balance
of the Clean Water/Clean Air Fund, not needed for debt service, is
transferred to the General Fund. In 2006-07 and 2007-08, it is


expected that $682 million and $559.9 million, respectively, will be
transferred to the General Fund.

During 2006-07, the statutory amount of real estate transfer tax
receipts to be deposited in to the Environmental Protection Fund was
$147 million. During 2007-08, the statutory amount of real estate
transfer tax receipts to be deposited in to the Environmental
Protection Fund will be up to $237 million.

JUSTIFICATION:

According to a May 1, 2007 report of the American Lung Association of
New York, entitled State of the Air: 2007, fourteen of New York's
thirty-two counties that have air pollution monitors, received failing
grades. According to the report, residents of all regions of New York
State breathe air with dangerously high levels of both particulate
matter and ozone.

Additionally, The American Lung Association of New York State
concluded that "Twenty-nine percent of all New York City emissions
come from heating fuel - more than the amount from vehicle traffic and
power plants combined." Additionally, the use of bio-fuels in old
school boilers will significantly reduce the particulate pollution
that leads to higher asthma incidence.

LEGISLATIVE HISTORY:

01/09/13 REFERRED TO FINANCE
01/08/14 REFERRED TO FINANCE
2011-2012: Referred to Finance (S.1766)
2009-2010: Referred to Finance (S.1146)
2007-2008: Referred to Finance (S.6105)

FISCAL IMPLICATIONS:

This bill will divert $50 million in RETT revenues from the General
Fund to the EPF.

LOCAL FISCAL IMPLICATIONS:

This bill will save school districts money in two ways: 1) it provides
State funding for the upgrade of their inefficient heating systems;
and 2) energy costs will be lower for school districts that upgrade to
more efficient heating systems.

EFFECTIVE DATE:

Immediately.