What's happening
This bill removes the 30-year maturity limit for bonds financing the water pollution control revolving fund, allowing up to 40 years.
Why it matters
Extending bond maturity to 40 years could lower annual debt payments for municipalities and utilities. , making it easier to fund large-scale water pollution control projects with less immediate budget pressure.
Longer bond terms may allow for bigger or more ambitious infrastructure investments. , as communities can spread costs over a longer period, potentially accelerating upgrades to aging water and sewage systems.
This change could align state financing with the expected useful life of major water infrastructure assets. , so that those benefiting from the projects over time are also those paying for them, supporting the principle of intergenerational equity.
Investors in these bonds could see changes in risk and return profiles. , as longer maturities generally involve greater interest rate risk, which might affect the attractiveness and pricing of these bonds in the municipal bond market.
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Who cares
Headline styles
Extend Water Bond Terms
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Reported and committed to finance
- Referred to corporations, authorities and commissions
- Returned to senate
- Died in assembly
- Referred to ways and means
- Delivered to assembly
- Passed senateVote 62–0
- Ordered to third reading cal.1550
- Committee discharged and committed to rules
- Reported and committed to finance
- Referred to corporations, authorities and commissions
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Extend Bond Maturity Limits
In Assembly Committee · Ways And Means · Sponsor Steven Otis
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4520
2019-2020 Regular Sessions
IN SENATE
March 14, 2019
Introduced by Sen. HARCKHAM -- read twice and ordered printed, and when printed to be committed to the Committee on Corporations, Authorities and Commissions
AN ACT to amend the public authorities law, in relation to the water pollution control revolving fund
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 2 of section 1290 of the public authorities law, as amended by chapter 55 of the laws of 1992, is amended to read as follows:
2. The notes and bonds shall be authorized by resolution of the directors of the corporation, shall bear such date or dates, and shall mature at such time or times, in the case of any such note or any renewals thereof not exceeding twelve years from the date of issue of such original note, and in the case of any such bond not exceeding forty years from the date of issue, as such resolution or resolutions may provide[; provided, however, that the final maturity of any bond issued for the purpose of financing any amounts deposited or to be deposited by the state in the water pollution control revolving fund shall not exceed thirty years from the date of issue of such bond]. The notes and bonds shall bear interest at such rate or rates which may vary from time to time, be in such denominations, be in such form, either coupon or registered, carry such registration privileges, be executed in such manner, be payable in such medium of payment, at such place or places and be subject to such terms of redemption as such resolution or resolutions may provide. The notes and bonds of the corporation may be sold by the corporation, at public or private sale, at such price or prices as the corporation shall determine. No notes or bonds of the corporation may be sold by the corporation at private sale, however, unless such sale and the terms thereof have been approved in writing by (a) the comptroller, where such sale is not to the comptroller, or (b) the director of the budget, where such sale is to the comptroller.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10094-01-9
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the public authorities law, in relation to the water pollution control revolving fund
Purpose
This bill would allow the Environmental Facilities Corporation ("EFC") to offer State Water Pollution Control Revolving Fund ("Clean Water State Revolving Fund" or "CWSRF") long-term financing for a term of up to forty years.
Summary of provisions
Section 1 of the bill would amend Public Authorities Law ("PAL")§ 1290
(2) to increase the term length limitation on EFC bonds issues for the purpose of financing deposits into the CWSRF. The maximum term length of such bonds would increase from not to exceed thirty years to not to exceed forty years.
Section 2 of the bill provides for an immediate effective date.
Justification
EFC is a key source for New York State municipalities seeking low cost funding for their water infrastructure projects. Through the CWSRF and the Drinking Water State Revolving Fund ("DWSRF") (each, an "SRF"), EFC is able to offer short-term and long-term financial assistance to muni- cipalities for the planning, design and construction of drinking water and wastewater infrastructure. With the increased focus and interest in water quality issues, an increasing number of municipalities are grappl- ing with the issue of affordability.
Recognizing this challenge, the U.S. Environmental Protection Agency has been encouraging states to offer longer-term financing to make SRF financial assistance more affordable to financially disadvantaged commu- nities. This bill would give EFC and municipalities the option to finance critical clean water infrastructure projects for their useful life, for terms of up to forty years. Potential benefits include lower- ing the annual debt service cost, thereby making municipal infrastruc- ture projects easier to afford, which in turn could relieve a signif- icant burden on local governments and their ratepayers. In addition, the availability of forty year financing for wastewater projects may encour- age some municipalities to use SRF financing rather than issuing long- term debt in the municipal marketplace, which may result in increased interest costs and consultant fees.
The ability to offer financing up to forty years is currently available for drinking water projects and enactment of this bill would grant EFC the same flexibility for clean water projects and allow EFC to be more responsive to the water infrastructure needs of all municipalities across New York State.
Legislative history
This is a new bill.
Fiscal implications
This bill would have no budget implications to the State.
Effective date
This bill shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.