S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9417
 
                             I N  S E N A T E
 
                               May 25, 2022
                                ___________
 
 Introduced  by  Sen. KRUEGER -- read twice and ordered printed, and when
   printed to be committed to the Committee on Environmental Conservation
 
 AN ACT to amend the  environmental  conservation  law,  in  relation  to
   establishing  the climate change adaptation cost recovery program; and
   to amend the state  finance  law,  in  relation  to  establishing  the
   climate change adaptation fund

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. This act shall be known and may be cited  as  the  "climate
 change superfund act".
   §  2.  Legislative  findings.  The  legislature finds and declares the
 following:
   1. Climate change, resulting primarily from the combustion  of  fossil
 fuels,  is  an immediate, grave threat to the state's communities, envi-
 ronment, and economy. In addition to mitigating the further  buildup  of
 greenhouse  gases, the state must take action to adapt to certain conse-
 quences of climate change that are irreversible,  including  rising  sea
 levels,  increasing temperatures, extreme weather events, flooding, heat
 waves, toxic  algal  blooms  and  other  climate-change-driven  threats.
 Maintaining New York's quality of life into the future, particularly for
 young  people,  who  will experience greater impacts from climate change
 over their lifetimes, will be one of  the  state's  greatest  challenges
 over  the  next  three  decades.  Meeting  that challenge will require a
 shared commitment of purpose and huge investments  in  new  or  upgraded
 infrastructure.
   2.  New  York has previously adopted programs now in place - the inac-
 tive hazardous waste disposal site (state superfund) program and the oil
 spill fund - to remediate environmental damage to lands and waters based
 on the principle that, where  possible,  the  entities  responsible  for
 environmental  damage  should  pay  for  its cleanup. No similar program
 exists yet for the pollution of the atmosphere by greenhouse gas buildup
 as a result of burning fossil fuels.
   3. Based on decades of research it is now possible to  determine  with
 great  accuracy  the  share of greenhouse gases released into the atmos-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD15432-03-2
 S. 9417                             2
 
 phere by specific fossil fuel companies over the last 70 years or  more,
 making  it possible to assign liability to and require compensation from
 companies commensurate with their emissions during a given time period.
   4.  It  is the intent of the legislature to establish a climate change
 adaptation cost recovery program that will require companies  that  have
 contributed  significantly  to  the  buildup  of  climate change-driving
 greenhouse gases in the atmosphere to bear a proportionate share of  the
 cost  of  infrastructure investments required to adapt to the impacts of
 climate change in New York state.
   5. a. The obligation to pay under the program is based on  the  fossil
 fuel companies' historic contribution to the buildup of greenhouse gases
 that  is  largely  responsible  for climate change. The program operates
 under a standard of strict liability; companies are required to pay into
 the fund because the use of their  products  caused  the  pollution.  No
 finding of wrongdoing is required.
   b. Nonetheless, the legislature recognizes that the actions of many of
 the  biggest  fossil  fuel  companies  have been unconscionable, closely
 reflecting the strategy of denial, deflection, and  delay  used  by  the
 tobacco  industry.  In  spite  of  the information provided by their own
 scientists that  the  continued  burning  of  fossil  fuels  would  have
 catastrophic  results, these companies hid the truth from the public and
 actively spread false information that the science of climate change was
 uncertain when in fact it was beyond controversy.  This  breach  of  the
 public  trust  was  breathtaking  in  its scope and consequences, and it
 continues to this day.
   c. In 2022, the fossil fuel industry has taken  advantage  of  several
 overlapping  global crises to earn immense profits, charging record high
 prices while aggressively rejecting any responsibility for the costs  of
 its  business activities. While all the profits accrue to the companies,
 all of the costs of climate change are paid  by  taxpayers.  This  is  a
 market failure that needs to be addressed through policy change.
   5. Payments by historical polluters into the climate change adaptation
 cost  recovery  program would be used for new or upgraded infrastructure
 needs such as sea walls, storm  water  drain  system  upgrades  and  air
 conditioning  in  public  buildings,  including school buildings, all of
 which are necessary to protect the public safety and welfare in the face
 of the growing impacts of climate change. At least 35%  of  the  overall
 benefits of program spending would go to climate change adaptive infras-
 tructure projects that directly benefit disadvantaged communities.
   6. This act is not intended to intrude on the authority of the federal
 government  in  areas  where it has preempted the right of the states to
 legislate. This act is remedial  in  nature,  seeking  compensation  for
 damages resulting from the past actions of polluters.
   §  3.  The  environmental  conservation law is amended by adding a new
 article 76 to read as follows:
                                ARTICLE 76
              CLIMATE CHANGE ADAPTATION COST RECOVERY PROGRAM
 SECTION 76-0101. DEFINITIONS.
         76-0103. THE CLIMATE CHANGE ADAPTATION COST RECOVERY PROGRAM.
 § 76-0101. DEFINITIONS.
   FOR THE PURPOSES OF THIS ARTICLE THE FOLLOWING TERMS  SHALL  HAVE  THE
 FOLLOWING MEANINGS:
   1.  "APPLICABLE  PAYMENT DATE" MEANS SEPTEMBER THIRTIETH OF THE SECOND
 CALENDAR YEAR FOLLOWING THE YEAR IN WHICH THIS ARTICLE IS  ENACTED  INTO
 LAW.
 S. 9417                             3
 
   2.  "CLIMATE  CHANGE ADAPTIVE INFRASTRUCTURE PROJECT" MEANS AN INFRAS-
 TRUCTURE PROJECT DESIGNED TO AVOID, MODERATE, OR REPAIR DAMAGE CAUSED BY
 CLIMATE CHANGE. SUCH PROJECTS INCLUDE BUT ARE NOT LIMITED TO THE  BUILD-
 ING  OF  SEA  WALLS AND COASTAL DEFENSES; UPGRADING STORM WATER DRAINAGE
 SYSTEMS; MAKING DEFENSIVE UPGRADES TO ROADS, BRIDGES, SUBWAYS, AND TRAN-
 SIT  SYSTEMS;  PREPARING  FOR  AND  RECOVERING FROM HURRICANES AND OTHER
 EXTREME WEATHER EVENTS; RELOCATING, ELEVATING,  OR  RETROFITTING  SEWAGE
 TREATMENT PLANTS VULNERABLE TO FLOODING; INSTALLING AIR CONDITIONING AND
 OTHER UPGRADES AND RETROFITS IN PUBLIC BUILDINGS, INCLUDING SCHOOLS; AND
 RESPONDING  TO  TOXIC  ALGAE  BLOOMS,  LOSS OF AGRICULTURAL TOPSOIL, AND
 OTHER CLIMATE-DRIVEN ECOSYSTEM THREATS TO FORESTS, FARMS AND FISHERIES.
   3. "COAL" SHALL HAVE THE SAME DEFINITION AS IN SECTION  1-103  OF  THE
 ENERGY LAW.
   4.  "CONTROLLED  GROUP" MEANS TWO OR MORE ENTITIES TREATED AS A SINGLE
 EMPLOYER UNDER SECTION 52(A) OR (B) OR SECTION  414(M)  OR  (O)  OF  THE
 INTERNAL  REVENUE  CODE.  IN APPLYING SUBSECTIONS (A) AND (B) OF SECTION
 52, SECTION 1563 OF THE INTERNAL REVENUE CODE SHALL BE  APPLIED  WITHOUT
 REGARD TO SUBSECTION(B)(2)(C). FOR PURPOSES OF THIS ARTICLE, ENTITIES IN
 A  CONTROLLED GROUP ARE TREATED AS A SINGLE ENTITY FOR PURPOSES OF MEET-
 ING THE DEFINITION OF RESPONSIBLE PARTY AND ARE  JOINTLY  AND  SEVERALLY
 LIABLE FOR PAYMENT OF ANY COST RECOVERY DEMAND OWED BY ANY ENTITY IN THE
 CONTROLLED GROUP.
   5.  "COST RECOVERY DEMAND" MEANS A CHARGE ASSERTED AGAINST A RESPONSI-
 BLE PARTY FOR COST RECOVERY PAYMENTS UNDER THE PROGRAM  FOR  PAYMENT  TO
 THE FUND.
   6. "COVERED GREENHOUSE GAS EMISSIONS" MEANS, WITH RESPECT TO ANY ENTI-
 TY,  THE TOTAL QUANTITY OF GREENHOUSE GASES RELEASED INTO THE ATMOSPHERE
 DURING THE COVERED PERIOD, EXPRESSED IN METRIC TONS  OF  CARBON  DIOXIDE
 EQUIVALENT, RESULTING FROM THE USE OF FOSSIL FUELS OR PETROLEUM PRODUCTS
 EXTRACTED, PRODUCED, REFINED, OR SOLD BY SUCH ENTITY.
   7.  "COVERED  PERIOD"  MEANS  THE PERIOD THAT BEGAN JANUARY FIRST, TWO
 THOUSAND AND ENDED ON DECEMBER THIRTY-FIRST, TWO THOUSAND EIGHTEEN.
   8. "CRUDE OIL" MEANS OIL OR PETROLEUM OF ANY KIND  AND  IN  ANY  FORM,
 INCLUDING BITUMEN, OIL SANDS, HEAVY OIL, CONVENTIONAL AND UNCONVENTIONAL
 OIL,  SHALE  OIL,  NATURAL  GAS LIQUIDS, CONDENSATES, AND RELATED FOSSIL
 FUELS.
   9. "ENTITY" MEANS ANY INDIVIDUAL, TRUSTEE, AGENT, PARTNERSHIP, ASSOCI-
 ATION, CORPORATION, COMPANY,  MUNICIPALITY,  POLITICAL  SUBDIVISION,  OR
 OTHER LEGAL ORGANIZATION, INCLUDING A FOREIGN NATION, THAT HOLDS OR HELD
 AN OWNERSHIP INTEREST IN A FOSSIL FUEL BUSINESS DURING THE COVERED PERI-
 OD.
   10.  "FOSSIL  FUEL" SHALL HAVE THE SAME DEFINITION AS IN SECTION 1-103
 OF THE ENERGY LAW.
   11. "FOSSIL FUEL BUSINESS" MEANS A BUSINESS ENGAGING IN THE EXTRACTION
 OF FOSSIL FUELS OR THE REFINING OF PETROLEUM PRODUCTS.
   12. "FUEL GASES" SHALL HAVE THE SAME DEFINITION AS IN SECTION 1-103 OF
 THE ENERGY LAW.
   13. "FUND" MEANS THE CLIMATE CHANGE ADAPTATION FUND ESTABLISHED PURSU-
 ANT TO SECTION NINETY-SEVEN-K OF THE STATE FINANCE LAW.
   14. "GREENHOUSE GAS" SHALL HAVE THE  SAME  DEFINITION  AS  IN  SECTION
 75-0101 OF THIS CHAPTER.
   15.  "NOTICE  OF COST RECOVERY DEMAND" MEANS THE WRITTEN COMMUNICATION
 INFORMING A RESPONSIBLE PARTY OF THE AMOUNT OF THE COST RECOVERY  DEMAND
 PAYABLE TO THE FUND.
   16.  "PETROLEUM PRODUCTS" SHALL HAVE THE SAME DEFINITION AS IN SECTION
 1-103 OF THE ENERGY LAW.
 S. 9417                             4
 
   17. "PROGRAM"  MEANS  THE  CLIMATE  CHANGE  ADAPTATION  COST  RECOVERY
 PROGRAM ESTABLISHED UNDER SECTION 76-0103 OF THIS ARTICLE.
   18. "QUALIFYING EXPENDITURE" MEANS AN AUTHORIZED PAYMENT FROM THE FUND
 IN  SUPPORT OF A CLIMATE CHANGE ADAPTIVE INFRASTRUCTURE PROJECT, INCLUD-
 ING ITS OPERATION AND MAINTENANCE, AS DEFINED BY THE DEPARTMENT.
   19. "RESPONSIBLE PARTY" MEANS ANY ENTITY (OR A SUCCESSOR  IN  INTEREST
 TO  SUCH ENTITY DESCRIBED HEREIN), WHICH, DURING ANY PART OF THE COVERED
 PERIOD, WAS ENGAGED IN THE TRADE OR BUSINESS OF EXTRACTING  FOSSIL  FUEL
 OR  REFINING CRUDE OIL AND IS DETERMINED BY THE DEPARTMENT TO BE RESPON-
 SIBLE FOR MORE THAN ONE BILLION TONS OF  COVERED  GREENHOUSE  GAS  EMIS-
 SIONS. THE TERM RESPONSIBLE PARTY SHALL NOT INCLUDE ANY PERSON WHO LACKS
 SUFFICIENT  CONNECTION  WITH THE STATE TO SATISFY THE NEXUS REQUIREMENTS
 OF THE UNITED STATES CONSTITUTION.
 § 76-0103. THE CLIMATE CHANGE ADAPTATION COST RECOVERY PROGRAM.
   1. THERE IS HEREBY ESTABLISHED A CLIMATE CHANGE ADAPTATION COST RECOV-
 ERY PROGRAM ADMINISTERED BY THE DEPARTMENT.
   2. THE PURPOSES OF THE PROGRAM SHALL BE THE FOLLOWING:
   A. TO SECURE COMPENSATORY PAYMENTS FROM RESPONSIBLE PARTIES BASED ON A
 STANDARD OF STRICT LIABILITY TO PROVIDE A SOURCE OF REVENUE FOR  CLIMATE
 CHANGE ADAPTIVE INFRASTRUCTURE PROJECTS WITHIN THE STATE.
   B. TO DETERMINE PROPORTIONAL LIABILITY OF RESPONSIBLE PARTIES PURSUANT
 TO SUBDIVISION THREE OF THIS SECTION;
   C.  TO  IMPOSE  COST RECOVERY DEMANDS ON RESPONSIBLE PARTIES AND ISSUE
 NOTICES OF COST RECOVERY DEMANDS;
   D. TO ACCEPT AND COLLECT PAYMENT FROM RESPONSIBLE PARTIES;
   E. TO IDENTIFY CLIMATE CHANGE ADAPTIVE INFRASTRUCTURE PROJECTS;
   F.  TO  DISPERSE  FUNDS  TO  CLIMATE  CHANGE  ADAPTIVE  INFRASTRUCTURE
 PROJECTS; AND
   G.  TO  ENSURE  THAT  AT  LEAST  THIRTY-FIVE  PERCENT OF THE QUALIFIED
 EXPENDITURES FROM THE  PROGRAM  SHALL  GO  TO  CLIMATE  CHANGE  ADAPTIVE
 INFRASTRUCTURE  PROJECTS THAT DIRECTLY BENEFIT DISADVANTAGED COMMUNITIES
 AS DEFINED IN SECTION 75-0101 OF THIS CHAPTER.
   3. A. A RESPONSIBLE PARTY SHALL BE STRICTLY LIABLE, WITHOUT REGARD  TO
 FAULT,  FOR  A SHARE OF THE COSTS OF CLIMATE CHANGE ADAPTIVE INFRASTRUC-
 TURE PROJECTS, INCLUDING THEIR OPERATION AND MAINTENANCE,  SUPPORTED  BY
 THE FUND.
   B.  WITH  RESPECT  TO EACH RESPONSIBLE PARTY, THE COST RECOVERY DEMAND
 SHALL BE EQUAL TO AN AMOUNT THAT BEARS THE SAME RATIO TO THIRTY  BILLION
 DOLLARS  AS  THE  RESPONSIBLE PARTY'S APPLICABLE SHARE OF COVERED GREEN-
 HOUSE GAS EMISSIONS BEARS TO THE AGGREGATE APPLICABLE SHARES OF  COVERED
 GREENHOUSE GAS EMISSIONS OF ALL RESPONSIBLE PARTIES.
   C. THE APPLICABLE SHARE OF COVERED GREENHOUSE GAS EMISSIONS TAKEN INTO
 ACCOUNT UNDER THIS SECTION FOR ANY RESPONSIBLE PARTY SHALL BE THE AMOUNT
 BY  WHICH  THE  COVERED  GREENHOUSE  GAS  EMISSIONS ATTRIBUTABLE TO SUCH
 RESPONSIBLE PARTY EXCEEDS ONE BILLION METRIC TONS.
   D. WHERE AN ENTITY OWNS A MINORITY INTEREST IN ANOTHER ENTITY  OF  TEN
 PERCENT  OR  MORE,  THE  CALCULATION OF THE ENTITY'S APPLICABLE SHARE OF
 GREENHOUSE GAS EMISSIONS TAKEN INTO ACCOUNT  UNDER  THIS  SECTION  SHALL
 INCLUDE  THE  APPLICABLE  SHARE  OF  GREENHOUSE GAS EMISSIONS TAKEN INTO
 ACCOUNT UNDER THIS SECTION BY THE ENTITY IN WHICH THE RESPONSIBLE  PARTY
 HOLDS  A MINORITY INTEREST, MULTIPLIED BY THE PERCENTAGE OF THE MINORITY
 INTEREST HELD.
   E. IN DETERMINING THE AMOUNT OF GREENHOUSE GAS EMISSIONS  ATTRIBUTABLE
 TO  ANY  ENTITY, AN AMOUNT EQUIVALENT TO NINE HUNDRED FORTY-TWO AND ONE-
 HALF METRIC TONS OF  CARBON  DIOXIDE  EQUIVALENT  SHALL  BE  TREATED  AS
 RELEASED  FOR  EVERY MILLION POUNDS OF COAL ATTRIBUTABLE TO SUCH ENTITY;
 S. 9417                             5
 
 AN AMOUNT EQUIVALENT TO FOUR HUNDRED  THIRTY-TWO  THOUSAND  ONE  HUNDRED
 EIGHTY  METRIC  TONS  OF  CARBON  DIOXIDE EQUIVALENT SHALL BE TREATED AS
 RELEASED FOR EVERY MILLION BARRELS OF CRUDE  OIL  ATTRIBUTABLE  TO  SUCH
 ENTITY;  AND  AN  AMOUNT EQUIVALENT TO FIFTY-THREE THOUSAND FOUR HUNDRED
 FORTY METRIC TONS OF CARBON  DIOXIDE  EQUIVALENT  SHALL  BE  TREATED  AS
 RELEASED FOR EVERY MILLION CUBIC FEET OF FUEL GASES ATTRIBUTABLE TO SUCH
 ENTITY.
   F.  THE  COMMISSIONER  MAY ADJUST THE COST RECOVERY DEMAND AMOUNT OF A
 RESPONSIBLE PARTY REFINING PETROLEUM PRODUCTS (OR WHO IS A SUCCESSOR  IN
 INTEREST TO SUCH AN ENTITY) IF SUCH RESPONSIBLE PARTY ESTABLISHES TO THE
 SATISFACTION  OF  THE  COMMISSIONER  THAT A PORTION OF THE COST RECOVERY
 DEMAND AMOUNT WAS ATTRIBUTABLE TO THE REFINING OF CRUDE OIL EXTRACTED BY
 ANOTHER RESPONSIBLE PARTY (OR WHO IS A SUCCESSOR IN INTEREST TO SUCH  AN
 ENTITY) THAT ACCOUNTED FOR SUCH CRUDE OIL IN DETERMINING ITS COST RECOV-
 ERY DEMAND AMOUNT.
   G.  PAYMENT  OF  A  COST  RECOVERY DEMAND SHALL BE MADE IN FULL ON THE
 APPLICABLE PAYMENT DATE UNLESS A RESPONSIBLE  PARTY  ELECTS  TO  PAY  IN
 INSTALLMENTS PURSUANT TO PARAGRAPH H OF THIS SUBDIVISION.
   H.  A  RESPONSIBLE  PARTY  MAY  ELECT  TO PAY THE COST RECOVERY DEMAND
 AMOUNT IN NINE ANNUAL INSTALLMENTS, TWENTY PERCENT OF THE TOTAL  DUE  IN
 THE  FIRST  INSTALLMENT  AND TEN PERCENT OF THE TOTAL DUE IN EACH OF THE
 FOLLOWING EIGHT INSTALLMENTS. IF AN ELECTION IS MADE  UNDER  THIS  PARA-
 GRAPH,  THE  FIRST  INSTALLMENT  SHALL BE PAID ON THE APPLICABLE PAYMENT
 DATE AND EACH SUBSEQUENT INSTALLMENT SHALL BE PAID ON THE SAME  DATE  AS
 THE APPLICABLE PAYMENT DATE IN EACH SUCCEEDING YEAR.
   I.  IF THERE IS ANY ADDITION TO THE ORIGINAL AMOUNT OF THE COST RECOV-
 ERY DEMAND FOR FAILURE TO TIMELY PAY ANY INSTALLMENT REQUIRED UNDER THIS
 SUBDIVISION, A LIQUIDATION OR SALE OF SUBSTANTIALLY ALL  THE  ASSETS  OF
 THE  RESPONSIBLE PARTY (INCLUDING IN A PROCEEDING UNDER U.S. CODE: TITLE
 11 OR SIMILAR CASE), A CESSATION OF BUSINESS BY THE  RESPONSIBLE  PARTY,
 OR  ANY  SIMILAR  CIRCUMSTANCE, THEN THE UNPAID BALANCE OF ALL REMAINING
 INSTALLMENTS SHALL BE DUE ON THE DATE OF SUCH EVENT (OR IN THE CASE OF A
 PROCEEDING UNDER U.S. CODE: TITLE 11 OR SIMILAR CASE, ON THE DAY  BEFORE
 THE  PETITION  IS  FILED). THE PRECEDING SENTENCE SHALL NOT APPLY TO THE
 SALE OF SUBSTANTIALLY ALL OF THE ASSETS OF  A  RESPONSIBLE  PARTY  TO  A
 BUYER  IF  SUCH BUYER ENTERS INTO AN AGREEMENT WITH THE DEPARTMENT UNDER
 WHICH SUCH BUYER IS LIABLE FOR THE REMAINING INSTALLMENTS DUE UNDER THIS
 SUBDIVISION IN THE SAME MANNER AS IF SUCH  BUYER  WERE  THE  RESPONSIBLE
 PARTY.
   4.  WITHIN ONE YEAR OF THE EFFECTIVE DATE OF THIS ARTICLE, THE DEPART-
 MENT SHALL PROMULGATE SUCH REGULATIONS AS ARE  NECESSARY  TO  CARRY  OUT
 THIS ARTICLE, INCLUDING BUT NOT LIMITED TO:
   A.  ADOPTING  METHODOLOGIES USING THE BEST AVAILABLE SCIENCE TO DETER-
 MINE RESPONSIBLE PARTIES AND THEIR APPLICABLE SHARE  OF  COVERED  GREEN-
 HOUSE GAS EMISSIONS CONSISTENT WITH THE PROVISIONS OF THIS ARTICLE;
   B.  REGISTERING  ENTITIES  THAT  ARE  RESPONSIBLE  PARTIES  UNDER  THE
 PROGRAM;
   C. ISSUING NOTICES OF COST  RECOVERY  DEMAND  TO  RESPONSIBLE  PARTIES
 INFORMING  THEM  OF  THE COST RECOVERY DEMAND AMOUNT; HOW AND WHERE COST
 RECOVERY DEMANDS CAN BE PAID; THE POTENTIAL CONSEQUENCES  OF  NONPAYMENT
 AND  LATE  PAYMENT; AND INFORMATION REGARDING THEIR RIGHTS TO CONTEST AN
 ASSESSMENT;
   D. ACCEPTING PAYMENTS FROM, PURSUING COLLECTION EFFORTS  AGAINST,  AND
 NEGOTIATING SETTLEMENTS WITH RESPONSIBLE PARTIES; AND
   E. ADOPTING PROCEDURES FOR IDENTIFYING CLIMATE CHANGE ADAPTIVE INFRAS-
 TRUCTURE PROJECTS ELIGIBLE TO RECEIVE QUALIFYING EXPENDITURES, INCLUDING
 S. 9417                             6

 LEGISLATIVE  BUDGET  APPROPRIATIONS,  ISSUANCE OF REQUESTS FOR PROPOSALS
 FROM LOCALITIES AND NOT-FOR-PROFIT AND COMMUNITY  ORGANIZATIONS,  GRANTS
 TO  PRIVATE  INDIVIDUALS,  OR OTHER METHODS AS DETERMINED BY THE DEPART-
 MENT,  AND  FOR  DISPERSING MONEYS FROM THE FUND FOR QUALIFYING EXPENDI-
 TURES. TOTAL QUALIFYING EXPENDITURES SHALL BE ALLOCATED IN SUCH A WAY AS
 TO ENSURE AT LEAST THIRTY-FIVE PERCENT  OF  THE  QUALIFIED  EXPENDITURES
 FROM  THE  PROGRAM  SHALL  GO  TO CLIMATE CHANGE ADAPTIVE INFRASTRUCTURE
 PROJECTS THAT DIRECTLY BENEFIT DISADVANTAGED COMMUNITIES AS  DEFINED  IN
 SECTION 75-0101 OF THIS CHAPTER.
   5.  THE  DEPARTMENT,  THE  DEPARTMENT OF TAXATION AND FINANCE, AND THE
 ATTORNEY GENERAL ARE HEREBY AUTHORIZED TO ENFORCE THE PROVISIONS OF THIS
 ARTICLE.
   6. THE DEPARTMENT OR THE DEPARTMENT  OF  TAXATION  AND  FINANCE  SHALL
 PROVIDE  AN OPPORTUNITY TO BE HEARD TO ANY RESPONSIBLE PARTIES THAT SEEK
 TO CONTEST A COST RECOVERY DEMAND. DETERMINATIONS MADE  IN  FAVOR  OF  A
 PETITIONER  AFTER SUCH HEARING SHALL BE FINAL AND CONCLUSIVE. A DETERMI-
 NATION IN FAVOR OF THE STATE MAY BE APPEALED UNDER ARTICLE SEVENTY-EIGHT
 OF THE CIVIL PRACTICE LAW AND RULES.
   7. MONEYS RECEIVED FROM COST RECOVERY DEMANDS SHALL  BE  DEPOSITED  IN
 THE CLIMATE CHANGE ADAPTATION FUND ESTABLISHED PURSUANT TO SECTION NINE-
 TY-SEVEN-K OF THE STATE FINANCE LAW.
   8.  A.  THE  DEPARTMENT SHALL CONDUCT AN INDEPENDENT EVALUATION OF THE
 CLIMATE CHANGE ADAPTATION COST RECOVERY PROGRAM.  THE  PURPOSE  OF  THIS
 EVALUATION IS TO DETERMINE THE EFFECTIVENESS OF THE PROGRAM IN ACHIEVING
 ITS PURPOSES AS DEFINED IN SUBDIVISION TWO OF THIS SECTION.
   B.  SUCH  EVALUATION  SHALL BE PROVIDED TO THE GOVERNOR, THE TEMPORARY
 PRESIDENT OF THE SENATE AND THE SPEAKER OF THE  ASSEMBLY  ON  OR  BEFORE
 JANUARY  FIRST  OF  THE SECOND CALENDAR YEAR FOLLOWING THE YEAR IN WHICH
 THIS ARTICLE IS ENACTED INTO LAW, AND ANNUALLY ON  OR  BEFORE  SEPTEMBER
 THIRTIETH THEREAFTER.
   C.  ANY ENTITY CONTRACTED BY THE DEPARTMENT TO CONDUCT SUCH EVALUATION
 SHALL RECEIVE PROMPT PAYMENT OF ALL MONEYS DUE UPON COMPLETION  OF  SUCH
 EVALUATION.
   §  4. The state finance law is amended by adding a new section 97-k to
 read as follows:
   § 97-K. CLIMATE CHANGE ADAPTATION FUND. 1. THERE IS HEREBY ESTABLISHED
 IN THE CUSTODY OF THE COMPTROLLER AND THE COMMISSIONER OF  TAXATION  AND
 FINANCE  A  SPECIAL  REVOLVING  FUND  TO BE KNOWN AS THE "CLIMATE CHANGE
 ADAPTATION FUND" FOR THE PURPOSE OF RECEIVING MONEYS THROUGH COST RECOV-
 ERY DEMANDS AND ISSUING FUNDS FOR QUALIFYING  EXPENDITURES  PURSUANT  TO
 THE CLIMATE CHANGE ADAPTATION COST RECOVERY PROGRAM ESTABLISHED IN ARTI-
 CLE SEVENTY-SIX OF THE ENVIRONMENTAL CONSERVATION LAW.
   2.  NO  MONIES  SHALL BE EXPENDED FROM THE FUND FOR ANY PROJECT EXCEPT
 QUALIFYING EXPENDITURES PURSUANT TO THE PROGRAM, INCLUDING THEIR  OPERA-
 TION  AND  MAINTENANCE,  AS  WELL  AS  REASONABLE  COSTS INCURRED BY THE
 DEPARTMENT OF ENVIRONMENTAL CONSERVATION FOR ADMINISTERING THE PROGRAM.
   3. REVENUES IN THE FUND SHALL  BE  KEPT  SEPARATE  AND  SHALL  NOT  BE
 COMMINGLED  WITH  ANY  OTHER MONEYS IN THE CUSTODY OF THE COMPTROLLER OR
 THE COMMISSIONER OF TAXATION AND FINANCE. ALL DEPOSITS OF SUCH  REVENUES
 SHALL,  IF REQUIRED BY THE COMPTROLLER, BE SECURED BY OBLIGATIONS OF THE
 UNITED STATES OR OF THE STATE HAVING A MARKET VALUE EQUAL AT  ALL  TIMES
 TO  THE  AMOUNT  OF  SUCH DEPOSITS AND ALL BANKS AND TRUST COMPANIES ARE
 AUTHORIZED TO GIVE SECURITY FOR SUCH DEPOSITS. ANY SUCH REVENUES IN SUCH
 FUND MAY, UPON THE DISCRETION OF THE COMPTROLLER, BE INVESTED  IN  OBLI-
 GATIONS  IN  WHICH  THE  COMPTROLLER IS AUTHORIZED TO INVEST PURSUANT TO
 SECTION NINETY-EIGHT-A OF THIS ARTICLE.
 S. 9417                             7
 
   4. ALL PAYMENTS OF MONEYS FROM THE FUND SHALL BE MADE ON THE AUDIT AND
 WARRANT OF THE COMPTROLLER.
   § 5. Availability of additional remedies. Nothing in this act shall be
 deemed  to preclude the pursuit of a civil action or other remedy by any
 person. The remedies provided in this  act  are  in  addition  to  those
 provided by existing statutory or common law.
   §  6.  Severability. If any word, phrase, clause, sentence, paragraph,
 section, or part of this act shall be adjudged by any court of competent
 jurisdiction to be invalid, such judgment shall not affect,  impair,  or
 invalidate the remainder thereof, but shall be confined in its operation
 to the word, phrase, clause, sentence, paragraph, section, or part ther-
 eof  directly  involved  in the controversy in which such judgment shall
 have been rendered.
   § 7. Construction. This act, being necessary for the  general  health,
 safety,  and  welfare  of  the  people of this state, shall be liberally
 construed to effect its purpose.
   § 8. This act shall take effect immediately.