S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7538--A
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               May 25, 2023
                                ___________
 
 Introduced by M. of A. SILLITTI -- read once and referred to the Commit-
   tee  on  Environmental  Conservation  --  committee  discharged,  bill
   amended, ordered reprinted as amended and recommitted to said  commit-
   tee
 
 AN  ACT  to  amend the public authorities law, in relation to the septic
   system replacement and sewer connection fund

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section 1285-u of the public authorities law, as added by
 section 9 of part T of chapter 57 of the laws of 2017, paragraph (a)  of
 subdivision 2 and subdivision 3 as amended by chapter 363 of the laws of
 2017, is amended to read as follows:
   §  1285-u.  Septic  system  replacement  AND SEWER CONNECTION fund. 1.
 Definitions. For purposes of this section:
   (a) "Cesspool" means a drywell that receives untreated sanitary  waste
 containing  human  excreta,  which  sometimes  has an open bottom and/or
 perforated sides.
   (b) "Fund"  means  the  state  septic  system  replacement  AND  SEWER
 CONNECTION fund created by this section.
   (c)  "Participating  county"  means  a county that notifies the corpo-
 ration that it seeks authority to administer a septic system replacement
 AND SEWER CONNECTION program within its municipal boundaries and  agrees
 to  abide  by  the program's goals, guidelines, eligibility requirements
 and reimbursement procedures and provide information to property  owners
 regarding program parameters including eligibility criteria.
   (d)  "Septic  system"  means  a system that provides for the treatment
 and/or disposition of the combination of human and sanitary  waste  with
 water  not  exceeding  one  thousand  gallons  per day, serving a single
 parcel of land, including residences and small businesses.
   (e) "Septic system project" means the replacement of a cesspool with a
 septic system, the installation, replacement  or  upgrade  of  a  septic

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11396-03-3
              

 A. 7538--A                          2
 
 system  or  septic system components, or installation of enhanced treat-
 ment technologies, including an advanced  nitrogen  removal  system,  to
 significantly and quantifiably reduce environmental and/or public health
 impacts  associated  with  effluent  from a cesspool or septic system to
 groundwater used as drinking water,  or  a  threatened  or  an  impaired
 waterbody.
   (f)  "Small  business"  means  any  business which is resident in this
 state, independently owned and operated, not dominant in its field,  and
 employing not more than one hundred individuals.
   (G)  "SEWER CONNECTION" MEANS THE PIPING CONNECTING A RESIDENTIAL HOME
 TO A MUNICIPAL SEWER SYSTEM AND EQUALIZATION FEES ASSOCIATED THEREWITH.
   2.  (a) There is hereby created the state  septic  system  replacement
 AND  SEWER  CONNECTION  fund,  which shall be administered by the corpo-
 ration to reimburse property owners or at the written request of a prop-
 erty owner, the septic system installer OR LICENSED  PLUMBER  contracted
 by  the  property  owner,  for up to fifty percent of the eligible costs
 incurred for  eligible  septic  system  projects  OR  RESIDENTIAL  SEWER
 CONNECTION PROJECTS, provided that no property owner shall be reimbursed
 more  than  ten  thousand  dollars  and  no  septic  system installer OR
 LICENSED PLUMBER may be reimbursed more than ten  thousand  dollars  per
 property.
   (b)  Eligible  costs  include  design  and  installation  costs, SEWER
 CONNECTION COSTS,  and  costs  of  the  system,  system  components,  or
 enhanced  treatment technologies, but shall not include costs associated
 with routine maintenance such as a pump out of a septic tank.
   (c) The department of environmental conservation, in consultation with
 the department of health and participating counties, shall from the list
 of participating counties establish priority geographic  areas  and,  in
 the  absence  of  county  information,  identify  eligible septic system
 projects OR RESIDENTIAL SEWER CONNECTION PROJECTS, based  on  an  area's
 vulnerability  to contamination, including the presence of a sole source
 aquifer, or known water quality impairment, population  density,  soils,
 hydrogeology, climate, and reasonable ability for septic system projects
 to  mitigate  water  quality  impacts.  The  department of environmental
 conservation may delegate to a participating county  the  identification
 of priority geographic areas.  The department of environmental conserva-
 tion,  in  consultation  with  participating  counties in which priority
 areas have been identified, shall determine the amount of money from the
 fund to be provided to  each  participating  county  based  on  density,
 demand  for  reimbursement from the fund and the criteria used to estab-
 lish the priority geographic  areas.    The  corporation  shall  publish
 information,  application  forms,  procedures and guidelines relating to
 the program on its website and in a manner that  is  accessible  to  the
 public.
   (d)  The corporation shall provide state financial assistance payments
 from the fund, from moneys appropriated by the legislature and available
 for that purpose, to  participating  counties  to  administer  a  septic
 system  replacement  AND  SEWER  CONNECTION  program  to support [septic
 system] projects within their municipal boundaries undertaken by proper-
 ty owners within their  municipal  boundaries.  Where  such  project  is
 located  in  a  priority geographic area identified by the department of
 environmental  conservation  as  threatened  or  impaired  by  nitrogen,
 including groundwater used as drinking water, such septic system project
 must reduce nitrogen levels by at least thirty percent.
   (e)  The  corporation  shall  make payments monthly to a participating
 county upon the receipt by the corporation of a certification  from  the
 A. 7538--A                          3
 
 participating  county  of  the  total  costs incurred by property owners
 within its municipal boundaries for septic system  OR  SEWER  CONNECTION
 projects   within   its  municipal  boundaries  that  are  eligible  for
 reimbursement from the fund.
   3.  (a) A participating county shall notify property owners who may be
 eligible to participate in the program.  Determinations  of  eligibility
 will  be made by the participating county based on the published program
 criteria and consideration of a property's location  in  relation  to  a
 waterbody, impacts to groundwater used as drinking water, and the condi-
 tion of the property owner's current septic system as determined by:
   (i) the county health department official; or
   (ii)  other  designated  authority  having  jurisdiction,  pursuant to
 septic inspections required by a municipal separate storm  sewer  system
 permit; or
   (iii)  a  septic contractor pursuant to the applicable county sanitary
 code provided, however, in cases where a property owner  has  authorized
 in writing such contractor to receive reimbursement directly, additional
 verification shall be required.
   (b)  An  owner  of  property served by a septic system or cesspool may
 apply to a participating county on an application substantially  in  the
 form provided by the corporation.
   (c) Property owners in participating counties must have signed a prop-
 erty  owner  participation agreement with the county before the start of
 the design phase to be eligible for reimbursement  from  the  fund.  The
 agreement  must be substantially in the form provided by the corporation
 and include, without limitation, the program's goals, guidelines, eligi-
 bility requirements and reimbursement procedures.
   (d) A property owner may apply for reimbursement of eligible costs  by
 submitting  to  the  participating  county  a reimbursement application,
 which must include at least:
   (i) a signed property owner participation agreement;
   (ii) a completed reimbursement application form substantially  in  the
 form provided by the corporation;
   (iii)  any applicable design approval for the septic system project OR
 SEWER CONNECTION PROJECT;
   (iv) description of all work completed;
   (v) cost documentation and invoice or invoices for eligible costs; and
   (vi) any written authorization for a septic system installer OR  PLUM-
 BER to receive reimbursement directly.
   (e)  Participating  counties  will  be responsible for reviewing their
 property owners' applications and approving, modifying  or  denying  the
 reimbursement requests as appropriate and issuing reimbursement payments
 to property owners from financial assistance payments made to the county
 from the fund.
   (f)  Participation  in  this program and the receipt of payments shall
 not prevent participating counties from providing additional  reimburse-
 ment to property owners.
   (g)  Subject  to the limitations of paragraph (d) of this subdivision,
 the county may set graduated incentive reimbursement  rates  for  septic
 system  projects  OR  SEWER  CONNECTION  PROJECTS  to maximize pollution
 reduction outcomes.
   4. On or before March first, two thousand nineteen, and annually ther-
 eafter, the corporation shall submit  to  the  governor,  the  temporary
 president of the senate and the speaker of the assembly a report regard-
 ing the program. Such report shall include, but shall not be limited to,
 the  number  and amount of grants provided, the number and amount of any
 A. 7538--A                          4
 
 grants denied, geographic distribution of such projects  and  any  other
 information the corporation determines useful in evaluating the benefits
 of the program.
   § 2.  This act shall take effect immediately.