BILL NUMBER:S3723

TITLE OF BILL:

An act to amend the environmental conservation law, in relation to
special assessments on hazardous wastes generated and hazardous waste
program fees

PURPOSE:

This proposal would waive payment of State hazardous waste fees for
sites participating in a municipal voluntary cleanup program that is
subject to a memorandum of understanding with the Department of
Environmental Conservation.

SUMMARY OF PROVISIONS:

This proposal would waive payment of State hazardous waste fees for
sites participating in a municipal voluntary cleanup program that is
subject to a memorandum of understanding with the Department of
Environmental Conservation.

JUSTIFICATION:

Under both local law and a memorandum of under- standing with the
State Department of Environmental Conservation, the City of New York
              

operates a voluntary brownfield cleanup program. The City voluntary
cleanup program is modeled closely on the State brown-field program
and it offers property owners and developers who agree to remediate
sites to State cleanup standards liability protection, City grants and
other incentives. To date, the City, working closely with the
Department of Environmental Conservation, has approved remedies for 86
properties, bringing needed jobs, investment and revitalization to
communities across the City.

Under the memorandum of understanding with the Department of
Environmental Conservation, the City program enrolls properties with
light to moderate levels of contamination. Nonetheless, a relative
handful of sites in the City program, when excavating soil for offsite
disposal, encounter hazardous waste which is then excavated and
disposed of offsite at permitted facilities. Because hazardous waste
is generated, site owners are assessed the state hazardous waste fee
of $130 per ton, which can amount to tens of thousands of dollars in
unanticipated project costs.

As a matter of policy, the State hazardous waste fee appropriately
discourages the generation of hazardous waste. However, when the fee
is applied to parties who volunteer to participate in a government-run
cleanup program, it provides a disincentive for property owners to
remediate their sites. Because of this, sites in the State brownfield
program are exempt from State hazardous waste fees. This amendment
would extend the waiver of hazardous waste fees to sites in the City
cleanup program. Any lost revenue to the State from the waiver would
likely be made up in income and sales tax generated from developments
that are built on sites remediated through the City cleanup program.


Accordingly, the Mayor urges the earliest possible favorable
consideration of this proposal by the Legislature.

LEGISLATIVE HISTORY:

New bill.

FISCAL IMPLICATIONS:

None

EFFECTIVE DATE:

Immediately.