S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10574
 
                           I N  A S S E M B L Y
 
                               June 20, 2024
                                ___________
 
 Introduced  by  COMMITTEE  ON RULES -- (at request of M. of A. Rozic) --
   read once and referred to the Committee on Environmental Conservation
 
 AN ACT to amend the public authorities law, the environmental  conserva-
   tion  law  and the public health law, in relation to the allocation of
   funds from the clean water state revolving  fund    and  the  drinking
   water revolving fund by the environmental facilities corporation
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph (a) of subdivision 1 of  section  1285-j  of  the
 public  authorities  law, as amended by chapter 262 of the laws of 2007,
 is amended to read as follows:
   (a) The corporation shall undertake and provide assistance in  support
 of  the program to make financial assistance available to municipalities
 to encourage and support the planning, development and  construction  of
 municipal  water  pollution  control  projects  in  accordance  with the
 provisions of this section, section 17-1909 of the environmental conser-
 vation law, and to  make  financial  assistance  available  to  eligible
 borrowers  through  linked  deposits  made  in  accordance  with article
 sixteen of the state finance law. MONEYS OF THE FUND SHALL BE  ALLOCATED
 TO  MUNICIPALITIES FOR ELIGIBLE PROJECTS IN PROPORTION TO THE POPULATION
 OF SUCH MUNICIPALITY AND SHALL NOT BE SUBJECT TO A DOLLAR AMOUNT LIMITA-
 TION.
   § 2. Paragraph g of subdivision 1 of section 17-1909 of  the  environ-
 mental  conservation law, as amended by chapter 262 of the laws of 2007,
 is amended to read as follows:
   g. "Intended use plan" means the plan prepared pursuant to subdivision
 two of this section, identifying the intended uses of the amounts avail-
 able in the fund, including but not limited to:  (i)  a  list  of  those
 projects  for  construction  of  publicly  owned  treatment works on the
 priority list developed pursuant to subdivision  two  of  this  section;
 (ii)  a  list  of projects developed pursuant to subdivision two of this
 section anticipated to  be  financed  by  the  fund  through  the  water
 pollution  control  linked  deposit  program; (iii) a description of the
 short and long term goals and objectives of the fund;  (iv)  information
 on  the  activities  to be supported, including a description of project
 categories, discharge requirements under  the  Federal  Water  Pollution
 Control  Act,  terms  of  financial  assistance,  and eligible borrowers
              

 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD14236-01-4
 A. 10574                            2
 
 pursuant to the water pollution control linked deposit  program  served;
 (v)  the  criteria and method established for the distribution of funds;
 and (vi) the amount of moneys from the fund[, not to exceed ten  million
 dollars annually,] to be made available for linked loans under the water
 pollution  control  linked  deposit program during the period covered by
 such intended use plan.
   § 3. Paragraph a of subdivision 3 of section 17-1909 of  the  environ-
 mental  conservation law, as amended by chapter 259 of the laws of 2021,
 is amended to read as follows:
   a. The corporation is authorized to promulgate regulations,  developed
 in  consultation  with the commissioner and the director of the division
 of the budget, for the purpose  of  carrying  out  its  responsibilities
 under  this  section,  including establishing criteria and standards for
 determining the amount of financial assistance to a municipality for  an
 eligible project; PROVIDED, HOWEVER, THAT SUCH REGULATIONS SHALL PROVIDE
 THAT  MONEYS OF THE FUND SHALL BE ALLOCATED TO MUNICIPALITIES FOR ELIGI-
 BLE PROJECTS IN PROPORTION TO THE POPULATION OF  SUCH  MUNICIPALITY  AND
 SHALL NOT BE SUBJECT TO A DOLLAR AMOUNT LIMITATION. To the extent finan-
 cial assistance to a municipality for an eligible project is provided as
 a  loan  from  the  proceeds  of  bonds or notes of the corporation, the
 amount of an allocation applicable  to  the  portion  of  such  eligible
 project financed with such loan shall be, subject to such maximum finan-
 cial  limitations  as  may  otherwise be necessary and prescribed by the
 commissioner and the director of the division  of  the  budget,  thirty-
 three  and  one-third  percent  of  the  principal  amount  of such loan
 outstanding at any time for such eligible project, to the extent reason-
 ably practicable, and subject to such deviation as may be necessary,  in
 connection with the administration and investment of moneys in the fund,
 unless  allocations  in  differing  amounts  are necessary to preclude a
 determination by the commissioner or the corporation pursuant  to  para-
 graph  e of subdivision eight of this section or unless an allocation in
 a differing amount is  required  for  an  innovative  technology  demon-
 stration  project;  provided,  however,  that in the case of any munici-
 pality which has, during the period commencing on June  first,  nineteen
 hundred ninety-two and ending on September thirtieth, two thousand twen-
 ty-four,  (i)  submitted  an application for financial assistance in the
 form of such a loan for an eligible project, which application has  been
 accepted  by  the  corporation,  (ii)  closed  on  such  loan, and (iii)
 commenced construction of such eligible project, the allocation applica-
 ble to the portion of such project financed with  such  loan  shall  be,
 subject  to  maximum financial limitations as may otherwise be necessary
 and prescribed by the commissioner and the director of the  division  of
 the  budget,  fifty percent of the principal balance outstanding on such
 loan at any time for such eligible project,  to  the  extent  reasonably
 practicable,  and  subject  to  such  deviation  as may be necessary, in
 connection with the administration and investment of moneys in the fund,
 unless allocations in differing amounts  are  necessary  to  preclude  a
 determination  by  the commissioner or the corporation pursuant to para-
 graph e of subdivision eight of this section or unless an allocation  in
 a  differing  amount  is  required  for  an innovative technology demon-
 stration project.
   § 4. Subdivision 1 of section  1162  of  the  public  health  law,  as
 amended  by  chapter  134  of  the  laws  of 2007, is amended to read as
 follows:
   1. The corporation is authorized to promulgate regulations,  developed
 in  consultation  with the commissioner and the director of the division
 A. 10574                            3
 
 of the budget, for the purpose  of  carrying  out  its  responsibilities
 under  this  title,  including  establishing  criteria and standards for
 determining the amount and kind of financial assistance to  a  recipient
 for an eligible project. To the extent financial assistance to a recipi-
 ent  for  an  eligible project is provided from the proceeds of bonds or
 notes of the corporation, the amount of an allocation applicable to  the
 portion of such eligible project financed with such financial assistance
 shall  be  determined  by  the corporation in accordance with such regu-
 lations, if any; PROVIDED, HOWEVER, THAT SUCH REGULATIONS SHALL  PROVIDE
 THAT  MONEYS OF THE FUND SHALL BE ALLOCATED TO MUNICIPALITIES FOR ELIGI-
 BLE PROJECTS IN PROPORTION TO THE POPULATION OF  SUCH  MUNICIPALITY  AND
 SHALL NOT BE SUBJECT TO A DOLLAR AMOUNT LIMITATION.
   §  5.  Paragraph  (b) of subdivision 1 of section 1285-m of the public
 authorities law, as added by chapter 134 of the laws of 2007, is amended
 to read as follows:
   (b) There is hereby established in the custody of  the  corporation  a
 special fund to be known as the drinking water revolving fund. Except as
 otherwise  provided  by  this  paragraph,  moneys  in the drinking water
 revolving fund shall be segregated from all other funds  of  or  in  the
 custody  of  the  corporation subject to any rights of holders of corpo-
 ration bonds or notes issued for the purposes of this section.    Moneys
 in  the  drinking  water revolving fund shall only be used in accordance
 with the provisions of this section and title four of article eleven  of
 the public health law; provided that, in addition, to the extent permit-
 ted by federal or state law, moneys in the drinking water revolving fund
 may be transferred to and used for the purposes authorized for the water
 pollution  control  revolving  fund,  and  moneys in the water pollution
 control revolving fund may be transferred to and used for  the  purposes
 authorized  for  the  drinking water revolving fund.   The moneys in the
 drinking water revolving fund shall  be  applied  to  or  paid  out  for
 authorized  purposes of such fund in accordance with subdivision four of
 this section and title four of article eleven of the public health  law.
 To the extent approved by the commissioner of health and the commission-
 er  of  environmental conservation and notwithstanding the provisions of
 paragraph (a) of this subdivision, moneys in the drinking water  revolv-
 ing  fund  and in the water pollution control revolving fund may be held
 together; provided that all such moneys are segregated  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;  provided  further,  that  the  corporation shall establish and
 maintain or cause there to be established and  maintained  a  system  of
 tracking the application of such moneys to the purposes of this section.
 The  corporation  may establish within the drinking water revolving fund
 additional accounts or subaccounts and specify any conditions applicable
 to the transfer of moneys between such  accounts  or  subaccounts.  With
 respect  to  each  eligible project, the corporation shall establish and
 maintain a record of the allocation provided for  the  benefit  of  such
 project  in accordance with the terms of the applicable financing agree-
 ment. MONEYS OF THE FUND SHALL BE ALLOCATED TO MUNICIPALITIES FOR ELIGI-
 BLE PROJECTS IN PROPORTION TO THE POPULATION OF  SUCH  MUNICIPALITY  AND
 SHALL NOT BE SUBJECT TO A DOLLAR AMOUNT LIMITATION.
   § 6. This act shall take effect immediately.