§ 56-0609. Clean air for schools projects.

1. Of the monies received by the state from the sale of bonds pursuant
to the Clean Water/Clean Air Bond Act of 1996, one hundred twenty-five
million dollars ($125,000,000) shall be available for disbursements for
clean air for schools projects.

The power authority is authorized to undertake clean air for schools
projects for elementary, middle and secondary schools. The power
authority may undertake such projects in cooperation with local gas and
electric corporations and/or energy service companies.

For the purposes of this section, "clean air for schools projects"
shall mean projects to improve air quality by schools including, but not
limited to, projects that replace coal-fired furnaces and heating
systems with furnaces and systems fired by oil or gas.

2. Any school district may make an application to the power authority
for state assistance payments from funds made available under this
article toward the costs of clean air for schools projects.

a. The power authority shall review such applications and may approve,
deny, or recommend modifications thereto, consistent with applicable law
and consistent with criteria, standards, or rules and regulations, as
the power authority may establish, relative to such projects. In the
event that an application is denied, the power authority shall provide,
in writing, reasons for the denial to the applicant.

b. In reviewing such applications, the power authority shall give due
consideration to the following criteria:

(i) the extent to which the project provides the greatest improvement
in air quality both within the school and in the surrounding
neighborhood;

(ii) the age of the system being replaced; and

(iii) the potential for energy cost savings from efficiency
improvements.

c. Upon approval of an application, the power authority may enter into
a contract with the school district to undertake a clean air for schools
project.

3. Notwithstanding any provision of law to the contrary, the
comptroller is authorized and directed to release monies constituting
state assistance payments, in amounts set forth in a schedule approved
by the director of the budget, to the power authority for the purposes
authorized by this section. Any monies constituting state assistance
payments made available to the power authority for the purposes
specified by this section shall not be subject to the requirements of
section one thousand thirteen of the public authorities law.