Establishes a clean air account and makes an appropriation therefor

1. $35 million to upgrade the dirtiest School boilers in the State (Approximately 14 boilers per year);

2. $5 million for grants to School in Clean Air Non-Attainment Areas to pay for the increased cost of Ultra Low Sulfur Diesel; and

3. $10 million to fund the initial costs of conversion to bio-fuels.

(In many cases, switching to a Bio-Fuel mixture requires the oil tank to be cleaned out. If the tank is not cleaned, the Bio-Fuel will push the tanks sludge into the boiler or furnace, which can inflict severe damage).

Summary of provisions

Section 1. Amends paragraph a of subdivision 2 of Section 92-s of the State Finance Law to create a new clean air account within the EPF.

§ 2. Amends paragraph (e) of subdivision 6 of Section 92-s of the State Finance Law to provide that moneys from the Clean Air Account shall be allocated as follows: $35 million to upgrade the dirtiest School boilers in the State (Approximately 14 boilers per year); $5 million for grants to School in Clean Air Non-Attainment Areas to pay for the increased cost of Ultra Low Sulfur Diesel; and $10 million to fund the initial costs of conversion to bio-fuels.

§ 3. Provides for an appropriation of $50 million to the credit of the Clean Air Account of the EPF.

§ 4. Effective immediately.

Existing law

The EPF is almost entirely funded by the Real Estate Transfer Tax (RETT). Revenues from the RETT have grown from $371 million in SFY 2001-02 to $950 million in 2006-07. It is realistic to expect that the RETT will continue to grow in the coming years.

The General Fund received no direct deposit of real estate transfer tax receipts in 2006-07 nor will it in 2007-08. However, the balance of the Clean Water/Clean Air Fund, not needed for debt service, is transferred to the General Fund. In 2006-07 and 2007-08, it is

expected that $682 million and $559.9 million, respectively, will be transferred to the General Fund.

During 2006-07, the statutory amount of real estate transfer tax receipts to be deposited in to the Environmental Protection Fund was $147 million. During 2007-08, the statutory amount of real estate transfer tax receipts to be deposited in to the Environmental Protection Fund will be up to $237 million.

Justification

According to a May 1, 2007 report of the American Lung Association of New York, entitled State of the Air: 2007, fourteen of New York's thirty-two counties that have air pollution monitors, received failing grades. According to the report, residents of all regions of New York State breathe air with dangerously high levels of both particulate matter and ozone.

Additionally, The American Lung Association of New York State concluded that "Twenty-nine percent of all New York City emissions come from heating fuel - more than the amount from vehicle traffic and power plants combined." Additionally, the use of bio-fuels in old school boilers will significantly reduce the particulate pollution that leads to higher asthma incidence.

Legislative history

01/09/13 REFERRED TO FINANCE 01/08/14 REFERRED TO FINANCE 2011-2012: Referred to Finance (S.1766) 2009-2010: Referred to Finance (S.1146) 2007-2008: Referred to Finance (S.6105)

Fiscal implications

This bill will divert $50 million in RETT revenues from the General Fund to the EPF.

Local fiscal implications

This bill will save school districts money in two ways: 1) it provides State funding for the upgrade of their inefficient heating systems; and 2) energy costs will be lower for school districts that upgrade to more efficient heating systems.

Effective date

Immediately.