S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    454
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              January 9, 2023
                                ___________
 
 Introduced  by  M.  of A. L. ROSENTHAL, CARROLL, COLTON -- read once and
   referred to the Committee on Environmental Conservation
 
 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-v to read as follows:
   §  1285-V.  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. THIS PROGRAM SHALL BE
 KNOWN AS THE DIESEL EMISSIONS REDUCTION PROGRAM AND HEREAFTER  SHALL  BE
 KNOWN AS "THE PROGRAM".
   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.
                                                            LBD00864-01-3
              

 A. 454                              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.
   (G) "FINANCIAL ASSISTANCE TO ELIGIBLE RECIPIENTS"  MEANS  ANY  ONE  OR
 MORE OF THE FOLLOWING:
   (I)  MAKING  LOANS  TO  ELIGIBLE  RECIPIENTS  FOR  ELIGIBLE  PROJECTS,
 PROVIDED SUCH LOANS (A) ARE MADE AT MARKET OR BELOW MARKET RATES, (B) DO
 NOT HAVE A FINAL MATURITY OF MORE THAN THE PERIOD OF PROBABLE USEFULNESS
 AS SET FORTH IN THE LOCAL FINANCE LAW, AND (C) HAVE PRINCIPAL AND INTER-
 EST PAYMENTS WHICH COMMENCE NOT LATER THAN ONE YEAR  AFTER  INSTALLATION
 OF THE ELIGIBLE PROJECT;
   (II)  BUYING OR REFINANCING DEBT OBLIGATIONS OF ELIGIBLE RECIPIENTS AT
 MARKET OR BELOW MARKET RATES;
   (III) 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;
   (IV) PROVIDING A SOURCE OF REVENUE OR SECURITY FOR PAYMENT OF  PRINCI-
 PAL  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;
   (V)  PROVIDING INTEREST RATE SUBSIDY ALLOCATIONS TO SUBSIDIZE LOANS TO
 ELIGIBLE RECIPIENTS MADE FROM THE PROCEEDS OF THE CORPORATION'S BONDS OR
 NOTES;
   (VI) PROVIDING GRANTS AND PRINCIPAL FORGIVENESS;
   (VII) 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.
   3. (A) THERE IS HEREBY ESTABLISHED IN THE CUSTODY OF THE CORPORATION A
 FUND  TO BE KNOWN AS THE STATE DIESEL EMISSIONS REDUCTION REVOLVING LOAN
 FUND (HEREAFTER KNOWN AS "THE FUND"). MONEYS IN THE STATE  DIESEL  EMIS-
 SIONS  REDUCTION  REVOLVING LOAN FUND SHALL BE 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. MONEYS IN THE STATE DIESEL EMISSIONS REDUCTION  REVOLVING  LOAN
 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-SEV-
 EN--NINETY-EIGHT  APPROPRIATIONS, OR SUBSEQUENT 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 APPROPRIATIONS, OR  SUBSEQUENT  REAP-
 A. 454                              3
 
 PROPRIATION FOR SUCH PROJECT PURSUANT TO SECTION 56-0607 OF THE ENVIRON-
 MENTAL 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 STATE DIESEL EMISSIONS REDUCTION REVOLVING LOAN FUND OR OTHERWISE
 TRANSFERRED  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
 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 STATE DIESEL EMISSIONS REDUCTION REVOLVING LOAN 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
 A. 454                              4
 
   (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.
   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 TWENTY-FOUR, 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
 A. 454                              5
 
 COMMITTEE, THE CHAIRMAN OF THE ASSEMBLY WAYS AND  MEANS  COMMITTEE,  THE
 DIRECTOR  OF  THE  DIVISION  OF THE BUDGET AND THE GOVERNING BODY OF THE
 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  REPORTS
 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 DISCERNIBLE OR ESTIMATED PUBLIC HEALTH BENEFIT  BROUGHT  ABOUT
 BY THESE DIESEL EMISSIONS REDUCTIONS.
   §  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:
 § 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-V  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.
   §  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-V  OF  THE  PUBLIC
 A. 454                              6
 
 AUTHORITIES LAW, TO DISTRIBUTE MONIES FOR THE RETROFITTING OF HEAVY DUTY
 DIESEL ENGINE VEHICLES.
   §  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:
 § 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-V OF THE PUBLIC AUTHORITIES LAW.
   § 5. This act shall take effect immediately.