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

BILL NUMBER:S5133

Title of bill

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

Purpose of the Bill:

This bill would extend, through September 30, 2018, the Clean Water State Revolving Fund fifty percent subsidy.

Summary of Provisions:

Section 1 of this bill amends Environmental Conservation Law (ECL) 17-1909(3)(a) to extend from September 30, 2015 to September 30, 2018, the fifty percent subsidy available to recipients of State Water Pollution Control Revolving Fund, or "Clean Water State Revolving Fund" (CWSRF) financings.

Section 2 of this bill amends ECL § 17-1909(8)(e) to make conforming changes.

Section 3 of this bill provides that the bill shall take effect imme- diately.

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 Envi- ronmental Facilities Corporation (EFC) 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 ending on September 30, 2015, any municipality which has (i) submitted an applica- tion for a CWSRF financing, which application is accepted by the EFC, (ii) closed on the CWSRF financing, and (iii) commenced construction of the project related to the financing, qualifies for a fifty percent subsidy in connection with the financing.

This bill would extend this until September 30, 2018. If this enhanced 50% interest rate subsidy is not extended, the statutory authority to provide an interest rate subsidy will revert to a one-third interest rate subsidy, effective October 1, 2015.

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; L. 2012, c 65.

Statement in Support:

EFC, together with the Department of Environmental Conservation, admin- isters the CWSRF, 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 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 created jobs and provided an environmental benefit The fifty percent subsidy has been extremely popular with local governments, and results in a high level of interest in the program.

Budget Implications:

This bill would have 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 environ- mentally significant projects in the most cost-effective manner.

Effective Date:

This act shall take effect immediately.