S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1474
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              January 9, 2025
                                ___________
 
 Introduced by M. of A. DINOWITZ -- read once and referred to the Commit-
   tee on Environmental Conservation
 
 AN  ACT  to amend the environmental conservation law, in relation to the
   climate change adaptation cost recovery program and  requirements  for
   climate  change  adaptive  infrastructure projects; to amend the labor
   law, in relation to the use of funds from the climate  change  adapta-
   tion  fund  for  certain  climate  risk-related  and energy transition
   projects; to amend the tax law,  in  relation  to  the  disclosure  of
   certain  data  from  returns of petroleum or fossil fuel businesses to
   the department of environmental conservation or  the  New  York  state
   energy  research and development authority; to amend the state finance
   law, in relation to expenditure of funds from the climate change adap-
   tation fund; to repeal section 76-0105 of the environmental  conserva-
   tion  law,  relating to labor and job standards and worker protection;
   and to amend a chapter of the laws of 2024 amending the  environmental
   conservation  law  relating to establishing the climate change adapta-
   tion cost recovery program, and amending the state finance law  relat-
   ing to establishing the climate change adaptation fund, as proposed in
   legislative  bills  numbers  S.  2129-B  and A. 3351-B, in relation to
   legislative findings and severability
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Subdivisions 1, 5, paragraph c of subdivision 6 and subdi-
 visions 7 and 8 of section 2 of a chapter of the laws of  2024  amending
 the  environmental conservation law relating to establishing the climate
 change adaptation cost recovery program; and amending the state  finance
 law  relating  to  establishing  the  climate change adaptation fund, as
 proposed in legislative bills numbers  S.  2129-B  and  A.  3351-B,  are
 amended to read as follows:
   1.  Climate  change, resulting primarily from the combustion of fossil
 fuels, is an immediate, grave threat to the state's  communities,  envi-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02898-01-5
              

 A. 1474                             2
 
 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] HARMFUL  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,  huge  investments  in  new  or
 upgraded  infrastructure,  and  new  revenue  sources  to  pay for those
 investments.
   5. 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 BASED ON THE AMOUNT OF HISTORIC GREENHOUSE GAS EMISSIONS  ATTRIBUT-
 ABLE TO GREENHOUSE GAS-PRODUCING FOSSIL FUELS WHICH THEY ARE RESPONSIBLE
 FOR EXTRACTING AND REFINING, because the use of [their] products DERIVED
 FROM SUCH FOSSIL FUELS caused [the] SUCH pollution. No finding of wrong-
 doing is required.
   c.  The total assessment [rate] of [$3] $75 billion dollars [per year]
 represents a small percentage of the  extraordinary  cost  to  New  York
 State for repairing from and preparing for climate change-driven extreme
 events  over  the  next  25  years, and is designed to have a meaningful
 impact on the burden borne by New York State taxpayers for climate adap-
 tation while being sufficiently limited so as to not impose  a  punitive
 negative  impact on an industry in which just the three largest domestic
 oil and gas producers made a combined $85.6 billion in profits in  2023.
 Recent  science  has determined that the largest one hundred fossil fuel
 producing companies are responsible for more than 70% of  global  green-
 house  gas  emissions since 1988, and therefore bear a much higher share
 of responsibility for climate damage to New York State than  is  repres-
 ented by the $75 billion being assessed them.
   7.   A covered period of [2000-2018] 2000-2024 has been selected. Over
 70 percent of the total increase in greenhouse gas concentrations  since
 the  Industrial  Revolution  has  occurred  since  1950,  with  a marked
 increase in the rate of emissions after  the  year  2000.  By  2000  the
 science of climate change was well established, and no reasonable corpo-
 rate  actor could have failed to anticipate regulatory action to address
 its impacts. In addition, the data necessary to  attribute  proportional
 responsibility is very robust in the covered period.
   8.  This act is not intended to intrude on the authority of the feder-
 al government in areas where it has preempted the right of the states to
 legislate.  This  [act]  PROGRAM  is remedial in nature, seeking compen-
 sation for damages resulting from the past actions of polluters.
   § 2.  Section 76-0105 of the environmental conservation law, as  added
 by a chapter of the laws of 2024 amending the environmental conservation
 law relating to establishing the climate change adaptation cost recovery
 program; and amending the state finance law relating to establishing the
 climate change adaptation fund, as proposed in legislative bills numbers
 S.2129-B and A. 3351-B, is REPEALED.
   §  3.  Sections  76-0101 and 76-0103 of the environmental conservation
 law, as added by a chapter of the laws of  2024  amending  the  environ-
 mental  conservation  law  relating  to  establishing the climate change
 adaptation cost recovery program; and amending  the  state  finance  law
 A. 1474                             3
 
 relating to establishing the climate change adaptation fund, as proposed
 in  legislative bills numbers S. 2129-B and A. 3351-B, are amended and a
 new section 76-0105 is added to read as follows:
 § 76-0101. Definitions.
   For  the  purposes  of this article the following terms shall have the
 following meanings:
   1.  "AFFILIATE" MEANS, WITH RESPECT TO ANY SPECIFIED ENTITY, AN ENTITY
 THAT  DIRECTLY,  OR  INDIRECTLY  THROUGH  ONE  OR  MORE  INTERMEDIARIES,
 CONTROLS OR IS CONTROLLED BY, OR IS UNDER COMMON CONTROL WITH, THE ENTI-
 TY SPECIFIED.
   2.  "Applicable  payment  date"  means  [September thirtieth] DECEMBER
 THIRTY-FIRST of the [second] FOURTH calendar year following the year  in
 which this article is enacted into law.
   [2.]  3.  "Climate  change  adaptive  infrastructure project" means an
 infrastructure project FOR PURPOSES OF CLIMATE CHANGE ADAPTATION THAT:
   A. INCLUDES BUT IS NOT LIMITED TO PROJECTS designed to  avoid,  moder-
 ate,  repair, or adapt to negative impacts caused by climate change, and
 to assist communities,  households,  and  businesses  in  preparing  for
 future  climate change-driven disruptions. Such [projects] PROJECT TYPES
 include but are not limited to restoring coastal wetlands and developing
 other nature-based solutions and coastal  protections;  upgrading  storm
 water  drainage  systems;  making  defensive upgrades to roads, bridges,
 subways, and transit systems; preparing for and recovering  from  hurri-
 canes  and  other  extreme weather events; undertaking preventive health
 care programs and providing medical care  to  treat  illness  or  injury
 caused  by  the  effects  of  climate  change; relocating, elevating, or
 retrofitting [sewage] WASTEWATER treatment plants vulnerable  to  flood-
 ing;  installing  energy efficient cooling systems and other weatheriza-
 tion and energy efficiency upgrades and retrofits in public and  private
 buildings,  including schools and public housing; upgrading parts of the
 electrical grid to increase stability and resilience, including support-
 ing the creation of self-sufficient clean energy microgrids;  addressing
 urban  heat  island  effects  through  green spaces, urban forestry, and
 other interventions; and  responding  to  [toxic  algae]  HARMFUL  ALGAL
 blooms, loss of agricultural topsoil, and other climate-driven ecosystem
 threats to forests, farms, fisheries, and food systems; AND
   B.    IS  GUIDED  BY  THE PROJECT CRITERIA IDENTIFIED IN THE STATEWIDE
 CLIMATE CHANGE ADAPTATION AND RESILIENCE PLAN ADOPTED PURSUANT TO SUBDI-
 VISION SIX OF SECTION 76-0103 OF THIS ARTICLE.
   [3. "Coal" shall have the same definition as in section 1-103  of  the
 energy law.]
   4.    "CONTROL"  (INCLUDING  THE  TERMS CONTROLLING, CONTROLLED BY AND
 UNDER COMMON CONTROL WITH) MEANS THE POSSESSION, DIRECT OR INDIRECT,  OF
 THE  POWER  TO DIRECT OR CAUSE THE DIRECTION OF THE MANAGEMENT AND POLI-
 CIES OF AN ENTITY, WHETHER THROUGH THE OWNERSHIP OF  VOTING  SECURITIES,
 BY CONTRACT, OR OTHERWISE.
   5.  "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
 meeting  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] THAT ARE AFFILIATES OF EACH OTHER.
   [5.] 6. "COST RECOVERY AMOUNT" MEANS SEVENTY-FIVE BILLION DOLLARS.
 A. 1474                             4
 
   7.  "Cost  recovery  demand"  means  [a  charge  asserted against] THE
 PORTION OF THE COST RECOVERY AMOUNT DETERMINED BY THE DEPARTMENT  PURSU-
 ANT  TO THE PROGRAM TO BE OWED BY a responsible party [for cost recovery
 payments under the program] for payment to the fund.
   [6.]  8. "Covered greenhouse gas emissions" means, with respect to any
 entity, the total quantity of greenhouse [gases released into the atmos-
 phere during the covered period] GAS EMISSIONS, expressed in metric tons
 of carbon dioxide equivalent, as defined  in  section  75-0101  of  this
 chapter,  [including  but  not  limited  to releases of greenhouse gases
 resulting from the extraction, storage, production,  refinement,  trans-
 port, manufacture, distribution, sale, and use of fossil fuels or petro-
 leum  products  extracted,  produced,  refined,  or sold by such entity]
 ATTRIBUTABLE TO THE TOTAL AMOUNT OF FOSSIL FUELS EXTRACTED BY THAT ENTI-
 TY DURING THE COVERED PERIOD, AS WELL AS THE TOTAL AMOUNT OF  CRUDE  OIL
 REFINED  BY  THAT  ENTITY DURING THE COVERED PERIOD. FOR THE PURPOSES OF
 THIS ARTICLE, COVERED GREENHOUSE GAS EMISSIONS INCLUDE  THOSE  EMISSIONS
 ATTRIBUTABLE  TO  ALL  FOSSIL  FUEL EXTRACTION AND REFINING WORLDWIDE BY
 SUCH ENTITY AND ARE NOT LIMITED TO SUCH EMISSIONS WITHIN THE STATE.
   [7.] 9. "Covered period" means the period that  began  January  first,
 two thousand and ended on December thirty-first, two thousand [eighteen]
 TWENTY-FOUR.
   [8.]  10.  "Crude  oil"  means oil or petroleum of any kind and in any
 form, including bitumen, oil sands, heavy oil, conventional  and  uncon-
 ventional  oil, shale oil, natural gas liquids, condensates, and related
 fossil fuels.
   [9.] 11. "Entity" means any individual, trustee,  agent,  partnership,
 association,  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
 period. FOR PURPOSES OF THIS ARTICLE, ENTITIES IN A CONTROLLED GROUP ARE
 TREATED AS A SINGLE ENTITY FOR THE PURPOSES OF MEETING THE DEFINITION OF
 RESPONSIBLE  PARTY AND SHALL BE JOINTLY AND SEVERALLY LIABLE FOR PAYMENT
 OF ANY COST RECOVERY DEMAND OWED BY ANY ENTITY IN THE CONTROLLED GROUP.
   [10.] 12. "Fossil fuel" shall have the same definition as  in  section
 1-103 of the energy law.
   [11.]  13.  "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.]  14.  "Fund" means the climate change adaptation fund established
 pursuant to section ninety-seven-m of the state finance law.
   [14.] 15. "Greenhouse gas"  shall  have  the  same  definition  as  in
 section 75-0101 of this chapter.
   [15.] 16. "Nature-based solutions" shall mean projects that utilize or
 mimic  nature or natural processes and functions and that may also offer
 environmental, economic, and social benefits, while  increasing  resili-
 ence.  Nature-based solutions include both green and natural infrastruc-
 ture.
   [16.] 17. "Notice of cost recovery demand" means the written  communi-
 cation  informing AN ENTITY THAT THEY ARE a responsible party AND of the
 amount of the cost recovery demand payable to the fund.
   [17.] 18. "Petroleum products" shall have the same  definition  as  in
 section 1-103 of the energy law.
   [18.]  19. "Program" means the climate change adaptation cost recovery
 program established under section 76-0103 of this article.
 A. 1474                             5
 
   [19.] 20. "Qualifying expenditure" means  [an  authorized]  A  payment
 from  the  fund  in  support of a climate change adaptive infrastructure
 project, including its operation and  maintenance,  as  defined  by  the
 department.
   [20.]  21.  "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  responsible for more than one billion tons of covered greenhouse gas
 emissions. The term responsible party shall not include any  person  who
 lacks  sufficient  [connection]  CONTACTS  with the state to satisfy the
 [nexus requirements] DUE PROCESS CLAUSE of the United  States  Constitu-
 tion.
 § 76-0103. The climate change adaptation cost recovery program.
   1. There is hereby established a climate change adaptation cost recov-
 ery program TO BE 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.  SUCH PAYMENTS
 IN AGGREGATE SHALL TOTAL THE COST RECOVERY AMOUNT AND SHALL BE  DUE  AND
 PAYABLE ON THE APPLICABLE PAYMENT DATE.
   b.  To determine proportional liability of responsible parties FOR THE
 COST RECOVERY AMOUNT pursuant to subdivision three of this section;
   c. To impose cost recovery demands on responsible  parties  and  issue
 notices of cost recovery [demands] DEMAND;
   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 allocate funds in such a way as to achieve a goal that at  least
 forty  percent  of  the qualified expenditures from the program, but not
 less than thirty-five percent of such expenditures, shall go to  climate
 change  adaptive  infrastructure  projects  that  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 COST RECOVERY AMOUNT, WHICH SHALL BE USED FOR
 THE costs of climate change adaptive infrastructure 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  [seventy-five
 billion  dollars]  THE  COST  RECOVERY AMOUNT as the responsible party's
 applicable share of covered greenhouse gas emissions bears to the aggre-
 gate 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.
 A. 1474                             6

   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;
 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] THE DEPARTMENT MAY: I. REQUIRE AN ENTITY TO PROVIDE  INFORMATION
 TO  THE  DEPARTMENT  RELATED  TO PAST PRACTICES, PRODUCTION, EXTRACTION,
 REFINING, EMISSIONS, OR OTHER HISTORICAL INFORMATION ABOUT  SUCH  ENTITY
 NECESSARY  OR  APPROPRIATE TO ENABLE THE DEPARTMENT TO DETERMINE WHETHER
 SUCH ENTITY IS A RESPONSIBLE PARTY  AND,  IF  SO,  THE  AMOUNT  OF  SUCH
 RESPONSIBLE PARTY'S COVERED GREENHOUSE GAS EMISSIONS; II. APPLY CONSIST-
 ENT EMISSIONS FACTORS, CONSISTENT WITH THE CLIMATE LEADERSHIP AND COMMU-
 NITY  PROTECTION  ACT PURSUANT TO CHAPTER ONE HUNDRED SIX OF THE LAWS OF
 TWO THOUSAND NINETEEN, TO CONVERT  EXTRACTION  AND  REFINING  DATA  INTO
 GREENHOUSE GAS EMISSIONS; AND III. UTILIZE INFORMATION RECEIVED FROM THE
 DEPARTMENT  OF  TAXATION  AND  FINANCE  PURSUANT  TO  SUBDIVISION (A) OF
 SECTION THREE HUNDRED FOURTEEN OF THE TAX LAW.
   E. I. THE DEPARTMENT SHALL ISSUE NOTICES OF COST  RECOVERY  DEMAND  TO
 ALL  RESPONSIBLE PARTIES AT THE TIMES SET FORTH IN PARAGRAPH A OF SUBDI-
 VISION FOUR OF THIS SECTION. PAYMENT OF A COST RECOVERY DEMAND SHALL  BE
 MADE IN FULL ON THE APPLICABLE PAYMENT DATE PROVIDED THAT, NOTWITHSTAND-
 ING  PARAGRAPH  A OF SUBDIVISION TWO OF THIS SECTION, THE DEPARTMENT MAY
 PROVIDE THAT A RESPONSIBLE PARTY MAY ELECT TO PAY AN AMOUNT  NO  GREATER
 THAN  NINETY-TWO PERCENT OF THE AMOUNT OF THE COST RECOVERY DEMAND AFTER
 THE APPLICABLE PAYMENT DATE. ANY SUCH  PAYMENTS  PERMITTED  TO  BE  MADE
 AFTER THE APPLICABLE PAYMENT DATE SHALL BE MADE WITHIN TWENTY-FOUR YEARS
 OF  THE  APPLICABLE  PAYMENT DATE, SHALL BE NO LESS FREQUENT THAN ANNUAL
 BEGINNING IN THE YEAR FOLLOWING THE APPLICABLE PAYMENT DATE,  AND  SHALL
 NOT INCREASE OVER TIME.
   II.  ANY RESPONSIBLE PARTY WHO FAILS TO MAKE A PAYMENT REQUIRED PURSU-
 ANT TO THIS SUBDIVISION SHALL PAY A PENALTY OF FIFTY PER CENTUM  OF  THE
 UNPAID  PAYMENT  AMOUNT,  PLUS  INTEREST  ON  THE  UNPAID PAYMENT AMOUNT
 COMPUTED IN ACCORDANCE WITH SECTION  6621(A)(2)  OF  THE  UNITED  STATES
 INTERNAL REVENUE CODE OF 1986 (PUBLIC LAW 99-514, 26 U.S.C. SECTION 1 ET
 SEQ.) FROM THE DATE THE PAYMENT WAS REQUIRED TO BE PAID.
   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 twenty-four annual installments, eight percent  of  the  total
 due  in  the first installment and four percent of the total due in each
 of the following twenty-three installments. If an election is made under
 this paragraph, the first installment shall be paid  on  the  applicable
 A. 1474                             7

 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 FINAL cost
 recovery demand AS OF THE APPLICABLE PAYMENT DATE for failure to  timely
 pay any [installment] AMOUNT required TO BE PAID 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]
 UNPAID AMOUNTS 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] ALL UNPAID
 AMOUNTS due [under this subdivision] in the same manner as if such buyer
 were the responsible party.
   4. a. Within [one year] THIRTY MONTHS of the effective  date  of  this
 article,  the department shall promulgate such regulations as are neces-
 sary OR APPROPRIATE to carry out this article, including but not limited
 to:
   i.  PROVISIONS FOR THE DEPARTMENT TO  REQUIRE  AN  ENTITY  TO  PROVIDE
 INFORMATION  TO  THE  DEPARTMENT  RELATED TO PAST PRACTICES, PRODUCTION,
 EXTRACTION, REFINING, EMISSIONS, OR OTHER HISTORICAL  INFORMATION  ABOUT
 SUCH  ENTITY NECESSARY OR APPROPRIATE TO ENABLE THE DEPARTMENT TO DETER-
 MINE WHETHER SUCH ENTITY IS A RESPONSIBLE PARTY AND, IF SO,  THE  AMOUNT
 OF SUCH RESPONSIBLE PARTY'S COVERED GREENHOUSE GAS EMISSIONS;
   II.  adopting  UNIFORM  AND  CONSISTENT  methodologies  using the best
 available [science] INFORMATION, SUCH AS PUBLICLY AVAILABLE DATABASES OF
 HISTORICAL PRODUCTION DATA, to determine responsible parties  and  their
 applicable share of covered greenhouse gas emissions consistent with the
 provisions of this article;
   [ii.] III. registering entities that are responsible parties under the
 program;
   [iii.]  IV.  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 nonpay-
 ment and late payment; and information regarding their rights to contest
 an assessment], NO LATER THAN JUNE THIRTIETH OF THE FOURTH CALENDAR YEAR
 FOLLOWING THE EFFECTIVE DATE  OF  THIS  ARTICLE,  FOR  EACH  RESPONSIBLE
 PARTY'S COST RECOVERY DEMAND;
   [iv.] V.  ESTABLISHING A PROCESS SUCH THAT:
   (1)  A RESPONSIBLE PARTY MAY FILE A REQUEST FOR RECONSIDERATION OF ITS
 COST RECOVERY DEMAND WITH THE DEPARTMENT  WITHIN  SIXTY  DAYS  FOLLOWING
 SERVICE  OF  THE  NOTICE  OF  COST  RECOVERY DEMAND IF WITHIN THE UNITED
 STATES, AND WITHIN NINETY DAYS FOLLOWING SUCH SERVICE OUTSIDE THE UNITED
 STATES, AND IN DOING SO SHALL EXHAUST ADMINISTRATIVE REMEDIES;
   (2) A REQUEST FOR RECONSIDERATION SHALL  STATE  THE  GROUNDS  FOR  THE
 REQUEST  AND  INCLUDE SUPPORTING DOCUMENTATION, WHICH MAY INCLUDE BUT IS
 NOT LIMITED TO DOCUMENTATION OF THE PARTY'S COVERED GREENHOUSE GAS EMIS-
 SIONS AND THE PARTY'S CONTACTS WITH THE STATE;
   (3) THE DEPARTMENT SHALL CONSIDER WHETHER ANY SUCH REQUESTS FOR RECON-
 SIDERATION, INCLUDING WHETHER A  RESPONSIBLE  PARTY  REFINING  PETROLEUM
 PRODUCTS,  OR  WHO  IS A SUCCESSOR IN INTEREST TO SUCH AN ENTITY, ESTAB-
 LISHES TO THE SATISFACTION OF THE DEPARTMENT THAT A PORTION OF THE  COST
 RECOVERY  DEMAND  AMOUNT  WAS  ATTRIBUTABLE TO THE REFINING OF CRUDE OIL
 A. 1474                             8
 
 EXTRACTED BY A RESPONSIBLE PARTY, OR WHO IS A SUCCESSOR IN  INTEREST  TO
 SUCH  AN ENTITY, THAT WAS ACCOUNTED FOR IN DETERMINING THE COST RECOVERY
 DEMAND AMOUNT OF SUCH RESPONSIBLE PARTY, AND  WHETHER  NOTICES  OF  COST
 RECOVERY  DEMAND  SHOULD  BE UPDATED, AND SHALL ISSUE UPDATED NOTICES OF
 COST RECOVERY DEMAND, IF APPLICABLE, WHICH SHALL INCLUDE A STATEMENT  OF
 THE GROUNDS OF THE DEPARTMENT'S DETERMINATION, WITHIN SIXTY DAYS FOLLOW-
 ING THE EXPIRATION OF ALL PERIODS FOR SUBMITTING A REQUEST FOR RECONSID-
 ERATION UNDER ITEM ONE OF THIS SUBPARAGRAPH;
   (4)  IF  NOTICES OF COST RECOVERY DEMAND ISSUED PURSUANT TO ITEM THREE
 OF THIS SUBPARAGRAPH RESULT IN  A  NEW  RESPONSIBLE  PARTY  RECEIVING  A
 NOTICE  OF  COST  RECOVERY  DEMAND  THAT WAS NOT ISSUED A NOTICE OF COST
 RECOVERY DEMAND BY THE DATE REQUIRED BY SUBPARAGRAPH IV  OF  THIS  PARA-
 GRAPH, THEN, IN THE SAME MANNER AS SET FORTH IN ITEMS ONE, TWO AND THREE
 OF  THIS SUBPARAGRAPH, SUCH RESPONSIBLE PARTY SHALL HAVE SIXTY DAYS FROM
 SERVICE WITHIN THE UNITED STATES, AND NINETY DAYS FROM  SERVICE  OUTSIDE
 THE  UNITED  STATES, TO FILE A REQUEST FOR RECONSIDERATION, WHICH FILING
 SHALL EXHAUST SUCH RESPONSIBLE PARTY'S ADMINISTRATIVE REMEDIES, AND  THE
 DEPARTMENT  SHALL  CONSIDER  SUCH  REQUEST FOR RECONSIDERATION AND ISSUE
 UPDATED NOTICES OF COST RECOVERY DEMAND, IF APPLICABLE,  IN  THE  MANNER
 CONTEMPLATED BY ITEM THREE OF THIS SUBPARAGRAPH;
   (5)  IF  ANY  UPDATING  OF NOTICES OF COST RECOVERY DEMAND PURSUANT TO
 SUCH PROCESSES FOR RECONSIDERATION RESULTS IN A  NEW  RESPONSIBLE  PARTY
 THAT  WAS NOT PREVIOUSLY ISSUED A COST RECOVERY DEMAND, SUCH NEW RESPON-
 SIBLE PARTY SHALL ALSO BE GIVEN THE OPPORTUNITY TO FILE  A  REQUEST  FOR
 RECONSIDERATION  IN  THE  SAME  MANNER AS SET FORTH IN ITEM FOUR OF THIS
 SUBPARAGRAPH, AND SUCH PROCESS SHALL CONTINUE UNTIL NO  NEW  RESPONSIBLE
 PARTY RESULTS FROM ISSUANCE OF NOTICES OF COST RECOVERY DEMAND; AND
   (6)  IF  THE  PROCESSES  IN  THIS  SUBPARAGRAPH RESULT IN ISSUANCES OF
 NOTICES OF COST RECOVERY DEMAND AFTER THE APPLICABLE PAYMENT DATE,  THEN
 THE APPLICABLE PAYMENT DATE SHALL BE THE DATE WHICH IS THIRTY DAYS AFTER
 THE FINAL ISSUANCE OF NOTICES OF COST RECOVERY DEMAND; AND
   VI.  accepting payments from, pursuing collection efforts against, and
 negotiating settlements with responsible parties[; and
   v. adopting procedures for identifying and  selecting  climate  change
 adaptive infrastructure projects eligible to receive qualifying expendi-
 tures, including legislative budget appropriations, issuance of requests
 for proposals from localities and not-for-profit and community organiza-
 tions,  grants to private individuals, or other methods as determined by
 the department, and for dispersing moneys from the fund  for  qualifying
 expenditures.    When  considering  projects intended to stabilize tidal
 shorelines, the department  shall  encourage  the  use  of  nature-based
 solutions.    Total qualifying expenditures shall be allocated in such a
 way as to achieve a goal that at least forty percent  of  the  qualified
 expenditures  from the program, but not less than thirty-five percent of
 such expenditures, shall go to climate  change  adaptive  infrastructure
 projects  that  benefit  disadvantaged communities as defined in section
 75-0101 of this chapter].
   b. The department shall hold at least two public hearings, one in-per-
 son and one virtual, on proposed regulations, with a minimum  of  thirty
 days'  public  notice in compliance with the provisions of article seven
 of the public officers law.
   5.  THE DEPARTMENT SHALL DEVELOP PROCEDURES TO  MAKE  PUBLICLY  AVAIL-
 ABLE,  BY  POSTING  ON  ITS  WEBSITE,  ALL  DATA  RELATED TO FOSSIL FUEL
 EXTRACTION AND REFINING BY ENTITIES WHICH THE DEPARTMENT OBTAINS  PURSU-
 ANT TO THE PROGRAM, TO THE MAXIMUM EXTENT PRACTICABLE.
 A. 1474                             9
 
   6.  Within  [two years] EIGHTEEN MONTHS of the [effective date of this
 article] PROMULGATION OF THE FINAL REGULATIONS PURSUANT  TO  SUBDIVISION
 FOUR  OF THIS SECTION, the department shall complete a statewide climate
 change adaptation [master] AND RESILIENCE plan, WHICH SHALL BE  PUBLICLY
 AVAILABLE,  INCLUDING  AT  A  MINIMUM  ON  THE DEPARTMENT'S WEBSITE, AND
 UPDATED NO LESS THAN EVERY THREE YEARS FOLLOWING THE PROCEDURES OF  THIS
 SUBDIVISION, for the purpose of guiding the dispersal of funds, PURSUANT
 TO  SECTION  NINETY-SEVEN-M  OF THE STATE FINANCE LAW, TO ALL REGIONS OF
 THE STATE in a timely, efficient, and equitable manner [to  all  regions
 of  the  state]  in  accordance  with the provisions of this chapter. In
 completing such plan, the department shall:
   a. collaborate with the department of state,  [empire  state  develop-
 ment]  HOMES  AND  COMMUNITY  RENEWAL, the department of agriculture and
 markets, the New York state energy research and  development  authority,
 the  department of public service, THE DEPARTMENT OF TRANSPORTATION, THE
 DEPARTMENT OF HEALTH, THE DIVISION OF BUDGET and the [New York independ-
 ent systems  operator]  DIVISION  OF  HOMELAND  SECURITY  AND  EMERGENCY
 SERVICES;
   b.  assess the adaptation needs [and vulnerabilities] of various areas
 vital to the state's economy, normal functioning,  and  the  health  and
 well-being  of  New  Yorkers, including but not limited to: agriculture,
 biodiversity, ecosystem services, education, finance, healthcare,  manu-
 facturing,  housing and [real estate] LAND USE, retail, tourism (includ-
 ing state and municipal parks), transportation, and municipal and  local
 government.
   c.  identify  major  potential,  proposed,  and ongoing climate change
 adaptive infrastructure projects throughout the state;
   d. identify opportunities for alignment with existing federal,  state,
 and local funding streams;
   e.  IDENTIFY POTENTIAL MUNICIPAL, NOT-FOR-PROFIT, AND COMMUNITY ORGAN-
 IZATION GRANT PROGRAMS;
   F.  INCLUDE IN SUCH PLAN PROJECT CRITERIA, PROJECT TYPES AND RECOMMEN-
 DATIONS FOR IDENTIFYING AND SELECTING CLIMATE  CHANGE  ADAPTIVE  INFRAS-
 TRUCTURE  PROJECTS  ELIGIBLE  TO  RECEIVE  QUALIFYING EXPENDITURES. WHEN
 CONSIDERING PROJECTS INTENDED TO STABILIZE TIDAL SHORELINES, THE DEPART-
 MENT SHALL ENCOURAGE THE USE OF NATURE-BASED SOLUTIONS;
   G. consult with stakeholders, including local governments, businesses,
 environmental advocates, THE FEDERALLY DESIGNATED BULK SYSTEM  OPERATOR,
 relevant  subject  area  experts,  and  representatives of disadvantaged
 communities; and
   [f.] H. provide opportunities for public engagement in all regions  of
 the  state,  INCLUDING  BY  HOLDING  AT  LEAST  TWO PUBLIC HEARINGS, ONE
 IN-PERSON AND ONE VIRTUAL, WITH  MEANINGFUL  OPPORTUNITIES  FOR  PARTIC-
 IPATION  AND PUBLIC COMMENT FROM ALL SEGMENTS OF THE POPULATION, INCLUD-
 ING PERSONS LIVING IN DISADVANTAGED COMMUNITIES AS  IDENTIFIED  PURSUANT
 TO  SECTION  75-0111  OF  THIS  CHAPTER, A MINIMUM OF SIXTY DAYS' PUBLIC
 NOTICE IN COMPLIANCE WITH THE PROVISIONS OF ARTICLE SEVEN OF THE  PUBLIC
 OFFICERS  LAW,  ON  A  DRAFT  OF THE PLAN, A SUMMARY AND ANALYSIS OF THE
 PUBLIC COMMENTS AND A DESCRIPTION OF ANY CHANGES MADE TO THE PLAN  BASED
 ON THE PUBLIC COMMENTS RECEIVED.
   [6.]  7.    TOTAL QUALIFYING EXPENDITURES SHALL BE ALLOCATED IN SUCH A
 WAY AS TO ACHIEVE A GOAL THAT AT LEAST FORTY PERCENT  OF  THE  QUALIFIED
 EXPENDITURES  FROM THE PROGRAM, BUT NOT LESS THAN THIRTY-FIVE PERCENT OF
 SUCH EXPENDITURES, SHALL GO TO CLIMATE  CHANGE  ADAPTIVE  INFRASTRUCTURE
 PROJECTS  THAT  BENEFIT  DISADVANTAGED COMMUNITIES AS DEFINED IN SECTION
 75-0101 OF THIS CHAPTER.
 A. 1474                            10
 
   8. The department[, the department of taxation and finance,]  and  the
 attorney  general  are  hereby  authorized  to implement and enforce the
 provisions of this article.
   [7.  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.
   8.]  9.  Moneys received from cost recovery demands shall be deposited
 in the climate change adaptation fund established  pursuant  to  section
 ninety-seven-m of the state finance law.
   [9.]  10.  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.
 SUCH EVALUATION SHALL INCLUDE, AT MINIMUM:
   I.  A LIST OF ALL RESPONSIBLE PARTIES AND THEIR RESPECTIVE COST RECOV-
 ERY DEMANDS, AS WELL AS ANY CHANGES TO AN ENTITY'S STATUS AS A RESPONSI-
 BLE PARTY DURING THE PRECEDING PROGRAM YEAR;
   II. AN ACCOUNTING OF ALL COST RECOVERY  DEMANDS  MADE  TO  RESPONSIBLE
 PARTIES,  ACTUAL  MONIES  COLLECTED,  AND  PENALTIES OR OTHER COLLECTION
 MEASURES TAKEN DURING THE PRECEDING PROGRAM YEAR;
   III. AN ACCOUNTING OF ALL EXPENDITURES FROM THE CLIMATE CHANGE ADAPTA-
 TION FUND ESTABLISHED PURSUANT TO SECTION NINETY-SEVEN-M  OF  THE  STATE
 FINANCE LAW, INCLUDING AT A MINIMUM:
   (1)  EXPENDITURES THAT BENEFIT DISADVANTAGED COMMUNITIES AS DEFINED IN
 SECTION 75-0101 OF THIS CHAPTER;
   (2) EXPENDITURES BY PROJECT TYPE;
   (3) EXPENDITURES BY PERCENTAGE  OF  OVERALL  FUNDING  USED  FOR  GRANT
 PROGRAMS  FOR  MUNICIPALITIES AND NOT-FOR-PROFIT AND COMMUNITY ORGANIZA-
 TIONS; AND
   (4) EXPENDITURES FOR ADMINISTRATION AND IMPLEMENTATION SUPPORT;
   IV. A REVIEW  OF  CLIMATE  CHANGE  ADAPTIVE  INFRASTRUCTURE  PROJECTS'
 STATUS,  INCLUDING  THE  NUMBER OF PROJECTS THAT HAVE BEEN COMPLETED AND
 THOSE PROJECTS WHICH HAVE BEEN IDENTIFIED AND REMAIN UNFUNDED;
   V. A SUMMARY OF THE GEOGRAPHIC DISTRIBUTION OF CLIMATE CHANGE ADAPTIVE
 INFRASTRUCTURE PROJECTS; AND
   VI. IDENTIFICATION OF FUTURE SPENDING NEEDS.
   b. Such evaluation shall be MADE PUBLIC ON  THE  DEPARTMENT'S  WEBSITE
 AND  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.]  11. THE DEPARTMENT SHALL PUBLISH ALL INFORMATION, REQUESTS
 FOR PROPOSALS, APPLICATION FORMS, PROCEDURES AND GUIDELINES RELATING  TO
 CLIMATE  CHANGE ADAPTIVE INFRASTRUCTURE PROJECTS ON ITS WEBSITE AND IN A
 MANNER THAT IS ACCESSIBLE TO THE PUBLIC AND ALL POTENTIAL RECIPIENTS.
 § 76-0105.  REQUIREMENTS  FOR  CLIMATE  CHANGE  ADAPTIVE  INFRASTRUCTURE
              PROJECTS.
   FOR EACH CONTRACT FOR CLIMATE CHANGE ADAPTIVE INFRASTRUCTURE PROJECTS,
 FUNDED  IN  PART  OR  IN  WHOLE  FROM THE CLIMATE CHANGE ADAPTATION FUND
 ESTABLISHED PURSUANT TO SECTION NINETY-SEVEN-M OF THE STATE FINANCE LAW,
 BY A PUBLIC ENTITY, OR A THIRD PARTY ACTING ON BEHALF AND FOR THE  BENE-
 A. 1474                            11
 
 FIT  OF  A  PUBLIC  ENTITY,  THE  "PUBLIC WORK" FOR THE PURPOSES OF THIS
 SUBDIVISION SHALL ENSURE THAT SUCH CONTRACT SHALL  CONTAIN  A  PROVISION
 THAT  THE  IRON  AND  STEEL  USED  OR SUPPLIED IN THE PERFORMANCE OF THE
 CONTRACT  OR ANY SUBCONTRACT THERETO, SHALL BE PRODUCED OR MADE IN WHOLE
 OR  SUBSTANTIAL  PART  IN  THE  UNITED  STATES,   ITS   TERRITORIES   OR
 POSSESSIONS.   IN THE CASE OF AN IRON OR STEEL PRODUCT ALL MANUFACTURING
 MUST TAKE PLACE IN THE UNITED STATES, FROM  THE  INITIAL  MELTING  STAGE
 THROUGH  THE  APPLICATION  OF  COATINGS,  EXCEPT METALLURGICAL PROCESSES
 INVOLVING THE REFINEMENT OF STEEL ADDITIVES.
   § 4. Section 224-f of the labor law, as added by section 3 of part  TT
 of chapter 56 of the laws of 2023, is amended to read as follows:
   § 224-f. Wage requirements for certain climate risk-related and energy
 transition projects. 1. For purposes of this section, a "covered climate
 risk-related and energy transition project" means a construction project
 that  receives  at  least one hundred thousand dollars of funds from the
 New York climate action  fund  climate  investment  account  established
 pursuant  to  section  ninety-nine-qq  of  the  state finance law OR THE
 CLIMATE CHANGE ADAPTATION FUND ESTABLISHED PURSUANT TO  SECTION  NINETY-
 SEVEN-M OF THE STATE FINANCE LAW.
   2.  A covered climate risk-related and energy transition project shall
 be subject to prevailing wage requirements in accordance  with  sections
 two  hundred  twenty,  two  hundred  twenty-a, two hundred twenty-b, two
 hundred  twenty-i,   two   hundred   twenty-three,   and   two   hundred
 twenty-four-b  of this article, provided that a covered climate risk-re-
 lated and energy transition project may still otherwise be considered  a
 covered  project  pursuant  to section two hundred twenty or two hundred
 twenty-four-a of this article if it meets the definition therein.
   3. For purposes of this section, a covered  climate  risk-related  and
 energy transition project shall exclude:
   a.  Privately  owned  construction  work  performed  under  a pre-hire
 collective bargaining agreement between an owner or developer and a bona
 fide building and  construction  trades  labor  organization  which  has
 established  itself, and/or its affiliates, as the collective bargaining
 representative for all persons who will perform work on such a  project,
 and  which  provides that only contractors and subcontractors who sign a
 pre-negotiated agreement with the labor organization can perform work on
 such a project; or
   b. Construction work on one- or two-family dwellings where the proper-
 ty is the owner's primary residence, or construction work  performed  on
 property where the owner of the property owns no more than four dwelling
 units; or
   c.  Construction  work performed on a multiple residence and/or ancil-
 lary amenities or installations that is wholly privately owned in any of
 the following circumstances:
   (i) where no less than twenty-five percent of  the  residential  units
 are affordable and shall be retained subject to an anticipated regulato-
 ry  agreement  with a local, state, or federal governmental entity, or a
 not-for-profit entity with an anticipated formal agreement with a local,
 state, or federal governmental entity for purposes of providing afforda-
 ble housing in a given locality or region provided that  the  period  of
 affordability  for  a  residential  unit  deemed  affordable  under  the
 provisions of this paragraph shall be for no  less  than  fifteen  years
 from the date of construction; or
   (ii)  where  no less than thirty-five percent of the residential units
 involves the provision of supportive  housing  services  for  vulnerable
 A. 1474                            12
 
 populations provided that such units are subject to an anticipated regu-
 latory agreement with a local, state, or federal governmental entity.
   4.  As a condition of receiving funds from the New York climate action
 fund climate investment account established pursuant to section  ninety-
 nine-qq  of  the state finance law OR FROM THE CLIMATE CHANGE ADAPTATION
 FUND ESTABLISHED PURSUANT TO SECTION NINETY-SEVEN-M OF THE STATE FINANCE
 LAW for a covered climate risk-related and  energy  transition  project,
 the  owner  or developer of such covered climate risk-related and energy
 transition project, or a third party acting on such owner's or  develop-
 er's  behalf,  shall agree to enter into a labor peace agreement with at
 least one bona fide labor organization either:
   a. where such bona fide labor organization  is  actively  representing
 non-construction  employees  who  will  be  working  within  the covered
 climate risk-related and energy transition project once built; or
   b. upon notice by a bona fide labor organization that is attempting to
 represent such non-construction employees.
   5. For purposes of this  section  "labor  peace  agreement"  means  an
 agreement between an owner and/or developer and labor organization that,
 at  a minimum, protects the state's proprietary interests by prohibiting
 labor organizations and members from engaging in picketing,  work  stop-
 pages, boycotts, and any other economic interference.
   6. The owner or developer using funds from the New York climate action
 fund  climate investment account established pursuant to section ninety-
 nine-qq of the state finance law OR FROM THE CLIMATE  CHANGE  ADAPTATION
 FUND ESTABLISHED PURSUANT TO SECTION NINETY-SEVEN-M OF THE STATE FINANCE
 LAW  for  a  covered  climate risk-related and energy transition project
 pursuant to this section shall:
   a. require the use of apprenticeship agreements as defined by  article
 twenty-three  of  this chapter; or for industries without apprenticeship
 programs, require the use of workforce training, preferably in  conjunc-
 tion with a bona fide labor organization; and
   b. consider use of registered pre-apprenticeship direct entry programs
 for the recruitment of local and/or disadvantaged workers.
   7.  For purposes of this section, the "fiscal officer" shall be deemed
 to be the commissioner. The enforcement of any covered climate  risk-re-
 lated  and energy transition project under this section shall be subject
 to the requirements of sections two hundred twenty,  two  hundred  twen-
 ty-a,  two  hundred  twenty-b, two hundred twenty-i, two hundred twenty-
 three, two hundred  twenty-four-b  of  this  article,  and  section  two
 hundred  twenty-seven of this chapter and within the jurisdiction of the
 fiscal officer; provided, however, nothing  contained  in  this  section
 shall  be deemed to construe any covered climate risk-related and energy
 transition project as otherwise being considered public work pursuant to
 this article.
   8. The fiscal officer may issue rules and  regulations  governing  the
 provisions  of this section. Violations of this section shall be grounds
 for determinations and orders pursuant to section two  hundred  twenty-b
 of this article.
   9. For any building service work on a covered climate risk-related and
 energy transition project, prevailing wage shall be paid consistent with
 article nine of this chapter.
   10. Any public entity receiving at least five million dollars in funds
 from  the New York climate action fund climate investment account estab-
 lished pursuant to section ninety-nine-qq of the state  finance  law  OR
 FROM  THE CLIMATE CHANGE ADAPTATION FUND ESTABLISHED PURSUANT TO SECTION
 NINETY-SEVEN-M OF THE STATE FINANCE LAW for a project which involves the
 A. 1474                            13
 
 construction, reconstruction, alteration, maintenance,  moving,  demoli-
 tion,  excavation,  development  or  other  improvement of any building,
 structure or land, shall be subject to section two hundred twenty-two of
 this article.
   §  5.  Subdivision  (a)  of  section 314 of the tax law, as amended by
 chapter 190 of the laws of 1990, is amended to read as follows:
   (a) General.[--] Except in accordance with proper judicial order or as
 otherwise provided by law, it shall be unlawful for any tax  commission-
 er,  any  officer or employee of the department of taxation and finance,
 or any person who, pursuant to this section, is permitted to inspect any
 return, or to whom any information contained in any return is furnished,
 or any person engaged or retained by such department on  an  independent
 contract basis, or any person who in any manner may acquire knowledge of
 the  contents  of a return filed pursuant to this article, to divulge or
 make known in any manner the amount of income or gross receipts  or  any
 particulars set forth or disclosed in any return under this article. The
 officers  charged with the custody of such returns shall not be required
 to produce any of them or evidence of anything contained in them in  any
 action  or proceeding in any court, except on behalf of the state or the
 commissioner of taxation and finance in an action  or  proceeding  under
 the  provisions  of  this  chapter  or in any other action or proceeding
 involving the collection of a tax due under this chapter  to  which  the
 state  or the commissioner is a party or a claimant, or on behalf of any
 party to any action or proceeding under the provisions of  this  article
 when  the  returns  or facts shown thereby are directly involved in such
 action or proceeding, in any of which events the court may  require  the
 production  of, and may admit in evidence, so much of said returns or of
 the facts shown thereby as are pertinent to the action or proceeding and
 no more. The commissioner may, nevertheless, publish a copy or a summary
 of any determination or  decision  rendered  after  the  formal  hearing
 provided  for  in  this  chapter.   Nothing herein shall be construed to
 prohibit the delivery to a petroleum business  or  its  duly  authorized
 representative  of a copy of any return filed by it, nor to prohibit the
 publication of statistics so classified as to prevent the identification
 of particular returns and the items thereof, OR THE DISCLOSURE  OF  DATA
 OTHER THAN TAXPAYER IDENTITY INFORMATION FROM A RETURN OR RETURNS OF ONE
 OR  MORE  PETROLEUM OR FOSSIL FUEL BUSINESSES TO THE DEPARTMENT OF ENVI-
 RONMENTAL CONSERVATION OR THE NEW YORK STATE ENERGY RESEARCH AND  DEVEL-
 OPMENT  AUTHORITY  FOR  THE  PURPOSE  OF IMPLEMENTING THE NEW YORK STATE
 CLIMATE CHANGE SUPERFUND ACT, or the  publication  of  delinquent  lists
 showing  the  names of petroleum businesses who have failed to pay their
 taxes at the time and in the manner provided by  section  three  hundred
 eight  of  this  article together with any relevant information which in
 the opinion of the commissioner may assist in  the  collection  of  such
 delinquent  taxes;  or  the  inspection by the attorney general or other
 legal representatives of the state of the return of any petroleum  busi-
 ness which shall bring action to set aside or review the tax based ther-
 eon, or against whom an action or proceeding under this chapter has been
 recommended  by  the  commissioner  or  the attorney general or has been
 instituted; or the inspection of the returns of any  petroleum  business
 by  the  comptroller or duly designated officer or employee of the state
 department of audit and control, for purposes of the audit of  a  refund
 of any tax paid by such petroleum business under this article. Provided,
 further, nothing herein shall be construed to prohibit the disclosure of
 taxpayer  identity  information,  including  name,  mailing  address and
 taxpayer identifying number (social security  account  number,  or  such
 A. 1474                            14
 
 other  number as has been assigned by the secretary of the United States
 treasury or [his] SUCH SECRETARY'S delegate, or by the  commissioner  of
 taxation  and  finance),  with  respect to persons who are registered as
 residual  petroleum product or aviation fuel businesses under this arti-
 cle or as distributors of motor fuel or diesel motor  fuel  or  kero-jet
 fuel  only  for  the purpose of article twelve-A of this chapter or this
 article, whose registration as a residual petroleum product business  or
 as  such  distributor  has  been cancelled or suspended pursuant to this
 article or such article twelve-A or whose application  for  registration
 as a residual petroleum product business or as such distributor has been
 refused  pursuant to this article or such article twelve-A. In addition,
 the commissioner may disclose the fact that a person is  not  registered
 as  a residual petroleum business under this article or as a distributor
 of motor fuel, diesel motor fuel or kero-jet  fuel  only  under  article
 twelve-A  of this chapter. Information disclosed pursuant to this subdi-
 vision shall not, by itself, be construed  as  proof  of  compliance  or
 noncompliance with the provisions of this chapter.
   §  6.  Section 97-m of the state finance law, as added by a chapter of
 the laws of 2024 amending the environmental conservation  law,  relating
 to establishing the climate change adaptation cost recovery program; and
 amending  the  state  finance  law  relating to establishing the climate
 change adaptation fund, as proposed  in  legislative  bills  numbers  S.
 2129-B and A. 3351-B, is amended to read as follows:
   § 97-m. 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] REVENUE fund to be known as  the  "climate
 change adaptation fund" for the purpose of receiving moneys through cost
 recovery  demands and issuing funds for qualifying expenditures pursuant
 to the climate change adaptation cost recovery  program  established  in
 article seventy-six of the environmental conservation law.
   2. No monies shall be expended from the fund for any [project] PURPOSE
 except:
   A. FOLLOWING APPROPRIATION BY THE LEGISLATURE, qualifying expenditures
 pursuant  to  the program, including their operation and maintenance, AS
 WELL AS REASONABLE COSTS AND EXPENSES INCURRED  BY  STATE  ENTITIES  FOR
 ADMINISTERING  AND  DIRECTLY  SUPPORTING  THE  IMPLEMENTATION OF CLIMATE
 CHANGE ADAPTIVE INFRASTRUCTURE PROJECTS  UNDER  THE  PROGRAM;  PROVIDED,
 HOWEVER,  THAT  NO MORE THAN ONE PERCENT OF THE RECEIPTS OF THE FUND MAY
 BE USED FOR SUCH ADMINISTRATIVE OR IMPLEMENTATION COSTS; AND
   B. FOLLOWING APPROPRIATION OR AUTHORIZATION BY THE LEGISLATURE, TRANS-
 FER TO OTHER  FUNDS  FOR  INVESTMENTS,  PAYMENTS  OR  BENEFITS  DIRECTLY
 RELATED  TO  SUCH  CLIMATE  CHANGE  ADAPTIVE INFRASTRUCTURE PROJECTS, AS
 APPROPRIATE.
   3. ANY APPROPRIATION FOR QUALIFYING  EXPENDITURES  SHALL  INDICATE  BY
 PROJECT TYPE THE AMOUNT OF QUALIFYING EXPENDITURES TO BE MADE AVAILABLE,
 HOWEVER,  NOTWITHSTANDING  ANY  OTHER  PROVISION OF LAW TO THE CONTRARY,
 AMOUNTS ASSOCIATED WITH VARIOUS PROJECT  TYPES  SHALL  BE  FULLY  INTER-
 CHANGEABLE WITHIN THE OVERALL APPROPRIATION.
   4.  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-
 A. 1474                            15
 
 gations in which the comptroller is authorized  to  invest  pursuant  to
 section ninety-eight-a of this article.
   [4.]  5.  All  payments  of  moneys from the fund shall be made on the
 audit and warrant of the comptroller.
   § 7. Section 6 of a chapter of the laws of 2024 amending the  environ-
 mental  conservation  law  relating  to  establishing the climate change
 adaptation cost recovery program; and amending  the  state  finance  law
 relating to establishing the climate change adaptation fund, as proposed
 in legislative bills numbers S. 2129-B and A. 3351-B, is amended to read
 as follows:
   §  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. IT IS HEREBY DECLARED TO BE THE INTENT OF THE LEGIS-
 LATURE THAT THIS ACT WOULD  HAVE  BEEN  ENACTED  EVEN  IF  SUCH  INVALID
 PROVISIONS HAD NOT BEEN INCLUDED HEREIN.
   §  8.  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. It is hereby declared to be the intent of the legis-
 lature that this act would  have  been  enacted  even  if  such  invalid
 provisions had not been included herein.
   §  9.  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.
   §  10.  This  act  shall  take effect on the same date and in the same
 manner as a chapter of the  laws  of  2024  amending  the  environmental
 conservation  law relating to establishing the climate change adaptation
 cost recovery program; and amending the state finance  law  relating  to
 establishing the climate change adaptation fund, as proposed in legisla-
 tive bills numbers S. 2129-B and A. 3351-B, takes effect.