BILL NUMBER: S4945

SPONSOR: PARKER
 
TITLE OF BILL:

An act to amend the state finance law, in relation to establishing a
clean air account; and making an appropriation therefor

 
PURPOSE:

This bill will increase the Environmental Protection Fund (EPF) from
$250 million to $300 million. This additional $50 million will be used
to create a new Clean Air Account. This $50 million would be allocated
as follows:

1. $35 million to upgrade the dirtiest School boilers in the State

(Approximately 14 boilers per year);

2. $5 million for grants to School in Clean Air Non-Attainment Areas to
pay for the increased cost of Ultra Low Sulfur Diesel; and

3. $10 million to fund the initial costs of conversion to bio-fuels.
              

(In many cases, switching to a Bio-Fuel mixture requires the oil tank to
be cleaned out. If the tank is not cleaned, the Bio-Fuel will push the
tanks sludge into the boiler or furnace, which can inflict severe
damage).

 
SUMMARY OF PROVISIONS:

Section 1: Paragraph a of subdivision 2 of section 92-s of the state
finance law, as amended by section 1 of part U of chapter 58 of the laws
of 2016, is amended.

Section 2: Paragraph (f) of subdivision 6 of section 92-s of the state
finance law is relettered paragraph (g) and a new paragraph (f) is
added.

Section 3: The sum of fifty million dollars (50,000,000), or so much
thereof as may be necessary, is hereby appropriated to the department of
environmental conservation out of any moneys in the state treasury in
the general fund to the credit of the clean air account.

Section 4: This act shall take effect immediately.

 
EXISTING LAW:

The EPF is almost entirely funded by the Real Estate Transfer Tax
(RETT). Revenues from the RETT have grown from $371 million in SFY
2001-02 to $950 million in 2006-07. It is realistic to expect that the
RETT will continue to grow in the coming years.

The General Fund received no direct deposit of real estate transfer tax
receipts in 2006-07 nor will it in 2007-08. However, the balance of the
Clean Water/Clean Air Fund, not needed for debt service, is transferred
to the General Fund. In 2006-07 and 2007-08, it is expected that $682
million and $559.9 million, respectively, will be transferred to the
General Fund.
During 2006-07, the statutory amount of real estate transfer tax
receipts to be deposited in to the Environmental Protection Fund was
$147 million. During 2007-08, the statutory amount of real estate'
transfer tax receipts to be deposited in to the Environmental Protection
Fund will be up to $237 million.

 
JUSTIFICATION:

According to a May 1, 2007 report of the American Lung Association of
New York, entitled State of the Air: 2007, fourteen of New York's thir-
ty-two counties that have air pollution monitors, received failing
grades. According to the report, residents of all regions of New York
State breathe air with dangerously high levels of both particulate
matter and ozone.

Additionally, The American Lung Association of New York State concluded
that "Twenty-nine percent of all New York City emissions come from heat-
ing fuel - more than the amount from vehicle traffic and power plants
combined." Additionally, the use of bio-fuels in old school boilers will
significantly reduce the particulate pollution that leads to higher
asthma incidence.

 
LEGISLATIVE HISTORY:

2021-22: Referred to Finance (S4993)

2019-20: Referred to Finance (S.4752)

2017-18: REFERRED TO FINANCE (S.5049)

2013-14: Referred to Finance (S.2417)

2011-12: Referred to Finance (S.1766)

2009-10: Referred to Finance (S.1146)

2007-08: Referred to Finance (S.6105)

 
FISCAL IMPLICATIONS:

This bill will divert $50 million in RETT revenues from the General Fund
to the EPF.

 
LOCAL FISCAL IMPLICATIONS:

This bill will save school districts money in two ways: 1) it provides
State funding for the upgrade of their inefficient heating systems; and
2) energy costs will be lower for school districts that upgrade to more
efficient heating systems.

 
EFFECTIVE DATE:
Immediately.