Relates to special powers of the New York State environmental facilities corporation

BILL NUMBER:S6639

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

The bill would extend the State Water Pollution Control Revolving Fund ("Fund" or "CWSRF") fifty percent subsidy through September 30, 2015.

Summary of provisions

Section 1 of the bill would amend Environmental Conservation Law ("ECL") § 17-1909, subd. 3 to extend from September 30, 2012 through September 30, 2015, the provisions of law applicable to the fifty percent subsidy available to recipients of CWSRF financings.

Section 2 of the bill would amend ECL § 17-1909, subd. 8 to make changes in the law to conform to the amendment made by section 1 of the bill.

Section 3 of the bill would make the bill effective immediately upon enactment.

Existing law

The CWSRF is funded through Federal capitalization grants pursuant to the Federal Water Quality Act of 1987, and requires State matching funds equal to twenty percent of the Federal capitalization grants. The Environmental Facilities Corporation ("EFC"), which implements the Fund, may allocate a portion of the Federal capitalization grants and State matching component to provide interest rate subsidies to recipients.

Currently, during the period commencing June 1, 1992 and, as extended, ending September 30, 2012, recipients qualify for a fifty percent subsidy in connection with the financing if they (i) submit an application for a CWSRF financing, which application is accepted by EFC; (ii) close on the CWSRF financing; and (iii) commence construction of the project related to the financing. If this enhanced 50% interest rate subsidy is not extended, the statutory authority to provide an interest rate subsidy will revert to the existing one-third interest rate subsidy, effective October 1, 2012.

Prior legislative history

The fifty percent subsidy was added by Chapter 645 of the Laws of 1992, and has been extended since that time as follows: L.1995, c.231; L.1996, c.447; L. 1998, c.414; L.2000, c.135; L.2003, c.148; L.2006, c.533; L.2009, c.279.

Statement in support

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, to acquire, construct and upgrade 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 interest-free short-term financing program, stimulated communities to begin their Clean Water projects and, in particular, upgrades of sewage treatment facilities. Additionally, this two-tiered program of interest-free short-term financings and a fifty percent long-term subsidy created jobs and provided an environmental benefit.

Budget implications

The State match is a condition to the receipt of any Federal capitalization grant and has no impact on the State budget.

Local impact

EFC's ability to offer subsidized financings to municipalities at a fifty percent subsidy level assists communities in financing environmentally significant projects in the most cost-effective manner.

Effective date

The bill would take effect immediately.