Extends the special powers of the New York state environmental faciliites corporation

1 Multi-sponsor

• Robert Sweeney

BILL NUMBER:A8690

Title of bill

An act to amend the environmental conservation law, in relation to the special powers of the New York state environmental facilities corporation

Purpose of the bill

This bill would extend the State Water Pollution Control Revolving Fund ("CWSRF") fifty percent subsidy through September 30, 2012.

Summary of provisions

Sections 1 and 2 of this bill amend subdivisions 3 and 3 of Section 171909 of the Environmental Conservation Law to extend the Clean Water State Revolving Fund 50% subsidy authorization for three additional years, through September 30, 2012.

Section 3 of this bill provides that it will be effective immediately.

Existing law

The CWSRF is funded through Federal capitalization grants pursuant to the Federal Water Quality Act of 1937, and required State matching funds equal to twenty percent of the Federal capitalization grants. EFC allo- cates a portion of the Federal capitalization grants and State matching component to provide a reserve fund to secure the repayment of financings made to recipients. This "allocation" is referred to in the statute as a "corpus allocation." The corpus allocation for a financing is equal to at least one-third of the principal amount of each financing outstanding at any given time, excluding portions of the financing used to fund a debt service reserve fund.

Currently, recipients who, during the period commencing June 1, 1992 and, as extended, ending September 30, 2009, (i) submit an application for a CWSRF financing, which application is accepted by the Corporation, (ii) close on the CWSRF financing, and (iii) commence construction of the project related to the financing, qualify for a fifty percent corpus allocation in connection with the financing.

If this enhanced 50% interest rate subsidy is not extended, the statuto- ry authority to provide an interest rate subsidy will revert to the existing one-third interest rate subsidy, effective October 1, 2009.

Prior legislative history

The fifty percent subsidy was added by Chapter 645 of the Laws of 1992, and has been extended as follows:

L.1995, c.231, extender L.1996, c.447, extender L.1998, c.414, extender L.2000, c.135, extender L.2003, c.148, extender L.2006, c.533, extender

Statement in support

The New York State Environmental Facilities Corporation ("EFC") together with the NYS Department of Environmental Conservation, administers the Clean Water State Revolving Fund, created by Chapter 565 of the Laws of 1989. The CWSRF was established to provide financial assistance to recipients, including municipalities, in acquiring, constructing and upgrading eligible water pollution control projects.

In 1992, the CWSRF subsidy level was increased to fifty percent for qualified recipients, The increased subsidy, together with EFC's inter- est-free short-term financing program, stimulated communities to begin their clean water projects. Additionally, this two-tiered program of interest free short-term financings and a fifty percent long-term subsi- dy creates jobs and provides an environmental benefit. The fifty percent subsidy has been extremely popular with local governments, has kept interest in the program high, and was extended until September 30, 2009.

Budget implications

The CWSRF is financed through Federal capitalization grants, with a twenty percent State match. The State match is a condition to the receipt of any Federal capitalization grant. Accordingly, the enhanced subsidy has no impact on the State budget.

Effective date

This act shall take effect immediately.