S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    824
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 8, 2025
                                ___________
 
 Introduced  by  Sen. KRUEGER -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 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:

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02898-01-5
              

 S. 824                              2
 
   1. Climate change, resulting primarily from the combustion  of  fossil
 fuels,  is  an immediate, grave threat to the state's communities, envi-
 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-
 S. 824                              3
 
 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, 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
 S. 824                              4

 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.
   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.
 S. 824                              5
 
   [18.] 19. "Program" means the climate change adaptation cost  recovery
 program established under section 76-0103 of this article.
   [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
 S. 824                              6

 holds a minority interest, multiplied by the percentage of the  minority
 interest held.
   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
 S. 824                              7

 of the following twenty-three installments. If an election is made under
 this  paragraph,  the  first installment shall be paid on the applicable
 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-
 S. 824                              8

 LISHES TO THE SATISFACTION OF THE DEPARTMENT THAT A PORTION OF THE  COST
 RECOVERY  DEMAND  AMOUNT  WAS  ATTRIBUTABLE TO THE REFINING OF CRUDE OIL
 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
 S. 824                              9
 
 EXTRACTION AND REFINING BY ENTITIES WHICH THE DEPARTMENT OBTAINS  PURSU-
 ANT TO THE PROGRAM, TO THE MAXIMUM EXTENT PRACTICABLE.
   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
 S. 824                             10
 
 PROJECTS  THAT  BENEFIT  DISADVANTAGED COMMUNITIES AS DEFINED IN SECTION
 75-0101 OF THIS CHAPTER.
   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
 S. 824                             11
 
 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-
 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
 S. 824                             12
 
   (ii)  where  no less than thirty-five percent of the residential units
 involves the provision of supportive  housing  services  for  vulnerable
 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
 S. 824                             13
 
 FROM  THE CLIMATE CHANGE ADAPTATION FUND ESTABLISHED PURSUANT TO SECTION
 NINETY-SEVEN-M OF THE STATE FINANCE LAW for a project which involves the
 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
 S. 824                             14
 
 taxpayer identity  information,  including  name,  mailing  address  and
 taxpayer  identifying  number  (social  security account number, or such
 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
 S. 824                             15
 
 authorized to give security for such deposits. Any such revenues in such
 fund  may,  upon the discretion of the comptroller, be invested in obli-
 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.