Enacts the "New York state separate stormwater sewer system mandate relief act of 2016"; appropriates $600,000,000 therefor; repealer

Part A of the legislation creates the New York State Stormwater Management Financing Act of 2016 in two sub parts. Section 1 of Subpart A captures the settlement funds received by New York State from Deutsche Bank and directs their use to finance water projects referred to in section 1045-b of the public authorities law or non-agricultural nonpoint source abatement and control projects as referred in section 17-1409 of the environmental conservation law. Section 2 is the enacting clause for Subpart A.

Subpart B lays out the New York State Stormwater Management Financing Act of 2016 Section one provides definitions that identify applicable projects as set forth in section 17-1403-of environmental conservation law and as defined in paragraphs a, b, c and e of subdivision four (4)of section 1160 of the public health law. Section two caps grants to municipalities from the environmental facilities corporation through this act to no more than ten million dollars in a single fiscal year for storm water management projects. Projects will include: SPEDES upgrades to existing sewage treatment works; new sewage treatment works or community septic systems and related infrastructure; sewer extensions; stormwater retrofits to address existing stormwater runoff concerns; for the improvement of sand and salt storage facilities; stream corridor protections; water quality projects; rehabilitation or replacement of failing subsurface sewage treatment systems and sewerage collection systems. This subpart will take effect immediately and includes a severability clause. Part B allocates the sum of six hundred million dollars to the department of environmental conservation aid to localities budget to fund the New York State Stormwater Management Financing Act of 2016. Funds shall be distributed up to two hundred million a year over a three year period.

Part C, section one directs the funds to the drinking water revolving fund for use pursuant to the New York State Stormwater Management Financing Act of 2016. Section two renumbers section 97-ddd to 99-x and adds projects from the New York state municipal separate stormwater sewer system mandate relief act of 2016 as a permissible expense of the fund. This subpart takes effect immediately.

Part D amends section 11-a of the soil and water conservation districts law; section 198 of the town law; section 24-501 of the administrative code of the city of New York; and section 119-c of the general municipal law to identify the municipalities, soil and water conservation districts and town watershed improvement districts that are eligible to receive funding under the New York State Stormwater Management Financing Act. Part D, section five includes a severability clause and the provisions of Part D takes effect immediately.

Part E adds new section 17-0709 to the environmental conservation law to require the commissioner of the department of environmental conservation to give consideration where allowable to multiple factors prior to issuing a SPDES permit including: a community's financial ability to secure necessary funding; the affordability of control options; an evaluation of the effectiveness and affordability of control technologies; the promotion of green infrastructure; the reduction of economic impacts on regulated entities, other state and local government entities, and residents; allowance for reasonable accommodations for entities when inflexible standards and fines would impose a disproportionate financial hardship in light of the environmental benefits to be gained, giving preference, when proposed by a committee, to control options that meet presumption approach performance criteria and demonstrate significant pollution reduction rather than mandating specific designs; allowance of adequate time and flexibility for implementation schedules when justified by a clear environmental benefit, a community's ability to raise or secure adequate funds, an analysis concluding that the costs of a shorter implementation schedule outweigh the benefits of faster implementation, or other facts; and factors set forth in the United States Environmental Protection Agency's "Combined Sewer Overflow Control Policy" that may ease the cost burdens of implementing long-term control plans, including but not limited to small system considerations, the attainability of water quality standards, and the development of wet weather standards.

Section two of Part E amends section 1161 of the public health law to include stormwater best practices, including source and nonpoint source control measures, technical and environmental feasibility, benefits, costs and cost effectiveness, the ability for a municipality to pay and the affordability of control options when determining eligibility and priority projects in the drinking water revolving fund. Part E shall take effect immediately.

Part F amends multiple sections of law to enable counties, villages and cities to create stormwater utilities or joint watershed improvement districts that apply for funding via the New York State Stormwater Management Financing Act of 2016.

Justification

This legislation seeks to address a significant unfunded mandate through the creation of a new financing program subsidized by settlement funds received by New York State that will assist municipalities with the costly Municipal Separate Storm Sewer System (MS4) mandate. This legislation will provide municipalities with flexibility and financing when achieving their clean water goals and providing wet weather improvements.

In New York, the State Department of Environmental Conservation (DEC) is charged with general permitting authority via the Federal Clean Water Act for the MS4 program. At this point, the determination of compliance has been made with little consideration to the county and local municipalities' ability to pay for the infrastructure upgrades necessary to reduce pollutants in the waterways. Municipalities are saddled with the burden of meeting the MS4 mandate without proper financing, and the added scrutiny of taxpayers as they seek to remain under the Real Property Tax Cap.

As such, many municipalities are forced to balance their fiduciary responsibilities to their water and sewer ratepayers against the high costs associated with meeting the MS4 mandates. Therefore these projects remain incomplete.

Along with a financing program, this legislation implements recommendations by the United States Conference of Mayors to require DEC to consider a municipality's ability to fund required infrastructure modifications required under MS4.

Legislative history

New bill

Fiscal implications

Allocates $600 million in settlement funds.

Effective date

Immediately.