Creates lien in favor of state for expenditures for certain remedial environmental projects

1 Co-sponsor

• Thomas K. Duane

Title of bill

An act to amend the environmental conservation law, in relation to liens against expenditures

Purpose or general idea of bill

Authorizes a lien of the state against the real property where expenditures are made by the state for the remediation of certain hazardous waste sites.

Summary of specific provisions

This bill would amend title 13 of article 27 of the environmental conservation law by adding a new section 27-1325 relating to the liens against expenditures for hazardous waste remediation projects. The State would be entitled to place an environmental lien on property of persons against whom the State has the authority to recover costs for expenditures made by the State on the remediation of such property. The bill provides for notice prior to the attachment of such lien, as well as details regarding the other requirements of the lien. Such lien would work in the same manner as a liens authorized under the navigation law for costs incurred by the Oil Spill Compensation Fund for cleanup and removal of petroleum discharges.

Justification

Frequently, to escape the burden of cleaning a hazardous waste-site and the "cradle to grave" responsibility for such sites, an owner will fall back upon the 'fresh start" of bankruptcy. In the process, no party wants the hazardous waste site and no party will take responsibility to clean it up. The value of the property becomes discounted on the open market not only for the price of the clean up but for the uncertainty of whether the clean up will satisfy government standards. This law will allow the state to recoup its expenditures for cleaning up a site rather than allowing the increase in value associated with that clean up to accrue to other lien holders.

Prior legislative history

A2037 of 1998 reported referred to Rules A648 of 1999 referred to Environmental Conservation A1051 of 2001 referred to Environmental Conservation/ reported referred to Codes/reported referred to Ways & Means A1051 of 2002 referred to Environmental Conservation / reported referred to Codes/reported referred to Ways & Means A.4835 of 2003 referred to environmental conservation A.4835A of 2004 reported referred to codes A.342-a of 2005 advanced to 3rd rdg. A.342--a of 2006 ordered to 3rd rdg. Rules cal. 644 A.1960 of 2007 referred to En Con/ reported .referred to Codes/reported referred to W&M A.1960 of 2008 referred to En Con/ reported referred to Codes/reported referred to W&M

Fiscal implications

Positive. Current expenditures from remedial funds are lost to secured lien holders. Under this law the state would recoup its expenditures from remedial funds.

Effective date

Immediately.