§ 1167-a. Reimbursement of state assistance payments or grants made to
municipality or recipient; admissibility of state assistance payments or
grants as collateral source. 1. A municipality or recipient that: (a)
receives a state assistance payment/grant from the corporation for an
eligible project to remove contaminants from drinking water or water
supplies under this title, including but not limited to state assistance
payments/grants for removing emerging contaminants; (b) takes legal
action against a responsible party to recover the costs of such eligible
project; and (c) receives payment by judgment, settlement or otherwise
from such responsible party for the costs for such eligible project,
shall reimburse the corporation the portion of such payment that is in
excess of (1) the total cost of the project (including, but not limited
to, the capital costs and operating and maintenance costs associated
therewith for the period during which the contamination is expected to
persist and require treatment); and (2) the expenses (including, but not
limited to, attorneys' fees and litigation costs and expenses) incurred
by the municipality or recipient pursuing recovery of such costs from
responsible parties, provided, however, that the municipality or
recipient shall not reimburse more than the amount of such state
assistance payment/grant for the eligible project.

2. Notwithstanding any other provision of law, including section
forty-five hundred forty-five of the civil practice law and rules,
evidence of any state assistance payment/grant from the corporation to
any municipality or recipient shall not be admissible in any action
brought by such municipality or recipient against a responsible party to
recover the costs for an eligible project and/or the operating and
maintenance costs associated therewith, and the court shall not reduce
the amount of any award against a responsible party in whole or in part
because of such state assistance payment or grant.