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A00454 Summary:

BILL NOA00454
 
SAME ASNo Same As
 
SPONSORRosenthal L
 
COSPNSRCarroll, Colton, Levenberg
 
MLTSPNSR
 
Add §1285-v, Pub Auth L; amd §§56-0603, 56-0605 & 56-0607, En Con L
 
Establishes the diesel emissions reduction program and the state diesel emissions reduction revolving loan fund.
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A00454 Actions:

BILL NOA00454
 
01/09/2023referred to environmental conservation
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A00454 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A454
 
SPONSOR: Rosenthal L
  TITLE OF BILL: An act to amend the public authorities law and the environmental conser- vation law, in relation to establishing the state diesel emissions reduction revolving loan fund   PURPOSE: This bill protects clean air and public health by providing help for public and private truck fleets in New York State to retrofit their trucks to reduce diesel emissions.   SUMMARY OF SPECIFIC PROVISIONS: Section one amends the public authorities law is amended by adding a new section 1285-s. Section two amends section 56-0603 of the environmental conservation law. Section three amends subdivision 1 of section 56-0605 of the environ- mental conservation law. Section four amends section 56-0607 of the environmental conservation law. Section five sets forth the effective date.   JUSTIFICATION: The Diesel Emissions Reduction Act of 2006 required heavy-duty vehicles owned by the state or under contract with the state to use ultra-low sulfur diesel fuel and to be fitted with best available retrofit tech- nologies to reduce tailpipe emissions. Diesel emissions are a contribut- ing factor to both ozone and fine particle pollution problems in many NY communities. The 2006 Act provided no funding to aid compliance. Many municipal and private fleets are out of compliance and this bill provides resources to aid compliance.   LEGISLATIVE HISTORY: 2021-22: A.1798 - Referred to Environmental Conservation 2019-20: A.980 - Referred to Environmental Conservation 2017-18: A.1047 - Referred to Environmental Conservation 2015-16: A.421 - Referred to Environmental Conservation 2013-14: A.503 - Referred to Environmental Conservation 2011-12: A.1470 - Referred to Environmental Conservation 2009-10: A.8361- Referred to Environmental Conservation   FISCAL IMPLICATIONS: Federal Congestion Mitigation and Air Quality (CMAQ) program funds can be used for the purposes of this program. Potential funds are also available for this program through the National Clean Diesel Campaign portion of the American Recovery and Reinvestment Act of 2009. This bill would also stimulate the market for NY companies that have special expertise in diesel emissions control technology, including Cummins, Inc. in Jamestown, Corning, Inc., and Caterpillar, Inc. Increased tax revenues from these companies should result from the successful imple- mentation of this bill. This bill will also help municipalities meet their obligations under the Diesel Emissions Reduction Act of 2006.   EFFECTIVE DATE: This bill shall take effect immediately.
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A00454 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                           454
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                     January 9, 2023
                                       ___________
 
        Introduced  by  M.  of A. L. ROSENTHAL, CARROLL, COLTON -- read once and
          referred to the Committee on Environmental Conservation
 
        AN ACT to amend the public authorities law and the environmental conser-
          vation law, in relation to establishing  the  state  diesel  emissions
          reduction revolving loan fund

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. The public authorities law  is  amended  by  adding  a  new
     2  section 1285-v to read as follows:
     3    §  1285-v.  Diesel  emissions reduction program. 1. The corporation is
     4  authorized to undertake a program to  provide  financial  assistance  to
     5  state  agencies  and  eligible  recipients  to encourage and support the
     6  purchase of new and retrofitting of  existing  heavy  duty  vehicles  in
     7  accordance  with  the  provisions of this section. This program shall be
     8  known as the diesel emissions reduction program and hereafter  shall  be
     9  known as "the program".
    10    2.  As  used  in  this section, the following terms have the following
    11  meanings:
    12    (a) "Best available retrofit technology" shall have the  same  meaning
    13  as  such term is defined in section 19-0323 of the environmental conser-
    14  vation law and regulations promulgated thereunder.
    15    (b)  "Commissioner"  shall  mean  the  commissioner  of  environmental
    16  conservation.
    17    (c)  "Eligible  project"  shall  mean  a  project for the purchase and
    18  installation of best available retrofit technology for heavy duty  vehi-
    19  cles,  including  the  retrofit of vehicles required pursuant to section
    20  19-0323 of the environmental conservation law, and nonroad  vehicles  as
    21  defined by 42 USC section 7550.
    22    (d)  "Eligible recipient" shall mean any person, municipality or state
    23  agency subject to section 19-0323 of the environmental conservation  law
    24  and  any person, municipality or state agency that is an eligible entity
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00864-01-3

        A. 454                              2
 
     1  pursuant to the Energy Policy Act of  2005  Diesel  Emissions  Reduction
     2  Program.
     3    (e)  "Heavy  duty vehicle" or "vehicle" shall have the same meaning as
     4  such term is defined in section 19-0323 of the  environmental  conserva-
     5  tion law.
     6    (f)  "Retrofit"  shall  mean the addition of new or enhanced pollution
     7  control after treatment equipment to diesel engines, upgrading a  diesel
     8  engine  to  a  cleaner  configuration,  and  early  replacement of older
     9  engines with newer cleaner engines.
    10    (g) "Financial assistance to eligible recipients"  means  any  one  or
    11  more of the following:
    12    (i)  making  loans  to  eligible  recipients  for  eligible  projects,
    13  provided such loans (A) are made at market or below market rates, (B) do
    14  not have a final maturity of more than the period of probable usefulness
    15  as set forth in the local finance law, and (C) have principal and inter-
    16  est payments which commence not later than one year  after  installation
    17  of the eligible project;
    18    (ii)  buying or refinancing debt obligations of eligible recipients at
    19  market or below market rates;
    20    (iii) guarantying, or purchasing insurance or other credit enhancement
    21  for eligible recipient obligations where such action would improve cred-
    22  it market access for or reduce interest rates on such eligible recipient
    23  obligations;
    24    (iv) providing a source of revenue or security for payment of  princi-
    25  pal  and  interest  on  bonds  or notes issued by the corporation if the
    26  proceeds of the sale of such bonds or notes will  be  deposited  in  the
    27  fund;
    28    (v)  providing interest rate subsidy allocations to subsidize loans to
    29  eligible recipients made from the proceeds of the corporation's bonds or
    30  notes;
    31    (vi) providing grants and principal forgiveness;
    32    (vii) using investment earnings on moneys in the fund to pay, pursuant
    33  to subdivision seven of this section, the costs of the  corporation  and
    34  the department of environmental conservation of administering and manag-
    35  ing the program described in this section.
    36    3. (a) There is hereby established in the custody of the corporation a
    37  fund  to be known as the state diesel emissions reduction revolving loan
    38  fund (hereafter known as "the fund"). Moneys in the state  diesel  emis-
    39  sions  reduction  revolving loan fund shall be segregated from all other
    40  funds of or in the custody of the corporation subject to any  rights  of
    41  holders  of  corporation  bonds or notes issued for the purposes of this
    42  section. Moneys in the state diesel emissions reduction  revolving  loan
    43  fund  shall  only  be  used  in  accordance  with the provisions of this
    44  section provided, however, that an amount of up to four percent  of  the
    45  fund  may  be  utilized  annually by the corporation to pay for costs of
    46  administering the fund.
    47    (b) The fund shall consist of the following:
    48    (i) notwithstanding any law  to  the  contrary,  up  to  four  million
    49  dollars  from  state  fiscal year nineteen hundred ninety-seven--ninety-
    50  eight appropriations, or subsequent  reappropriation  for  such  project
    51  pursuant to section 56-0603 of the environmental conservation law, up to
    52  four million dollars from state fiscal year nineteen hundred ninety-sev-
    53  en--ninety-eight  appropriations, or subsequent reappropriation for such
    54  project pursuant to section 56-0605 of  the  environmental  conservation
    55  law,  up  to  two  million  dollars  from the state fiscal year nineteen
    56  hundred ninety-seven--ninety-eight appropriations, or  subsequent  reap-

        A. 454                              3
 
     1  propriation for such project pursuant to section 56-0607 of the environ-
     2  mental conservation law;
     3    (ii)  all  moneys  appropriated for the payment of the costs of diesel
     4  emissions reduction activities and equipment pursuant to section one  of
     5  chapter  fifty-five of the laws of two thousand seven, as reappropriated
     6  by chapter fifty-five of the laws of two thousand nine, and  as  may  be
     7  subsequently reappropriated;
     8    (iii) all moneys appropriated by the state legislature for the purpose
     9  of the state diesel emissions reduction revolving loan fund or otherwise
    10  transferred  by  the  state  for  deposit  therein by the comptroller as
    11  required by law;
    12    (iv) payments of principal and interest made  by  eligible  recipients
    13  pursuant  to  loan or other agreements entered into pursuant to subdivi-
    14  sion six of this section; provided, however, if such loans were financed
    15  by the issuance of bonds or notes of the corporation,  deposit  of  such
    16  payments  into the fund shall be subject to the rights of the holders of
    17  such bonds or notes to receive such monies;
    18    (v) investment earnings on amounts in the fund;
    19    (vi) any other payments received from recipients pursuant to a loan or
    20  other agreement made pursuant to subdivision six  of  this  section  for
    21  costs of managing and administering the program; and
    22    (vii)  the  proceeds  of  bonds or notes issued by the corporation for
    23  purposes of providing financial assistance to eligible recipients.
    24    (c) Additionally, the following sources  may  be  deposited  into  the
    25  fund, subject to appropriation or transfer:
    26    (i)  all  or  a  portion  of  moneys paid to the state pursuant to any
    27  future reauthorization, reappropriation, extension or expansion  of  the
    28  federal  Diesel Emission Reduction Act or adoption of any federal act of
    29  substantially similar purpose;
    30    (ii) all or a  portion  of  moneys  paid  to  the  state  pursuant  to
    31  subsection three of State and Tribal Assistance Grants included in Title
    32  VII of the American Recovery and Reinvestment Act of 2009; and
    33    (iii) any other moneys paid to the state for deposit in the fund.
    34    4.  Moneys in the state diesel emissions reduction revolving loan fund
    35  may be invested as  provided  in  subdivision  four  of  section  twelve
    36  hundred  eighty-four  and  subdivision  six  of  section  twelve hundred
    37  eighty-five-j of this title.
    38    5. Moneys of the fund shall be  available  only  for  distribution  to
    39  eligible  projects pursuant to this section that are approved in consul-
    40  tation with the department of environmental conservation. The department
    41  of environmental conservation shall, in  consultation  with  the  corpo-
    42  ration, develop guidance for selection of eligible projects, which shall
    43  establish  eligibility  criteria for distribution of moneys contained in
    44  the fund consistent with the provisions of this section. Subject to  any
    45  applicable  federal  requirements,  priority  shall  be  given  to those
    46  projects that will utilize best available retrofit technology and:
    47    (a) are subject to the requirements of section 19-0323 of the environ-
    48  mental conservation law;
    49    (b) maximize public health benefits;
    50    (c) provide the most cost-effective expenditure  of  funds,  including
    51  reductions in diesel emissions per dollar expended; and
    52    (d) serve areas in New York that are:
    53    (i)  in  non  attainment  of  the National Ambient Air Quality primary
    54  standards established for particulate matter or ozone;
    55    (ii) environmental justice areas as designated by  the  department  of
    56  environmental conservation; or

        A. 454                              4
 
     1    (iii)  impacted by higher levels of vehicle traffic; or industrial and
     2  commercial areas including but not limited  to  ports,  airports,  truck
     3  stops, rail yards, terminals and distribution centers.
     4    6.  Moneys  in the fund shall be applied by the corporation to provide
     5  financial assistance to eligible recipients for eligible projects and to
     6  provide for the administrative and management costs of the program.
     7    7. (a) Notwithstanding any provisions of  law  to  the  contrary,  the
     8  corporation shall distribute moneys contained in the fund as follows:
     9    (i) until March thirty-first, two thousand twenty-four, twenty percent
    10  of  the  fund  shall be used to provide grants to state agencies for the
    11  retrofitting of vehicles subject to section 19-0323 of the environmental
    12  conservation law;
    13    (ii) the remainder of the fund shall  be  used  to  provide  financial
    14  assistance  to  eligible  recipients for eligible projects that meet the
    15  goal of emissions reduction in accordance with the  provisions  of  this
    16  section and in accordance with any applicable federal requirements.
    17    8.  Eligible  recipients may submit applications to the corporation in
    18  such manner as the corporation directs. All applications shall  include,
    19  at a minimum, the following information:
    20    (a)  Any  information  required  to demonstrate eligibility to receive
    21  federal assistance under any federal program listed in subdivision three
    22  of this section;
    23    (b) Calculation of the extent to which installation  of  the  proposed
    24  project will reduce diesel emissions;
    25    (c) The air quality designation of the area in which vehicles proposed
    26  to be retrofitted or replaced operate;
    27    (d)  Extent  to which the proposed project meets the priority criteria
    28  of subdivisions four and five of this section; and
    29    (e) Any other information that the corporation requires.
    30    9. The corporation, in consultation with the  department  of  environ-
    31  mental conservation, is authorized to:
    32    (a)  consult with any other state agency or public authority which the
    33  corporation deems appropriate in the development of the diesel  retrofit
    34  emissions reduction program developed pursuant to this section; and
    35    (b)  prepare,  in consultation with such agencies and authorities, and
    36  make available to the public, diesel emissions reduction program manuals
    37  and brochures for the purpose of ensuring that the standards and  crite-
    38  ria  applicable  to the program are available to persons who may wish to
    39  participate in the program, to facilitate the goals of the program.
    40    10. In addition to the powers granted to the corporation elsewhere  in
    41  this  chapter, the corporation may make loans to eligible recipients for
    42  purposes of financing eligible projects for which the fund may be  used,
    43  subject  to  the  limitations  of subdivision seven of this section, may
    44  accept the obligations of any municipality as security for the repayment
    45  of a loan to an eligible recipient,  and  may  assign  and  pledge  such
    46  eligible  recipient  obligations  and loan agreements for the benefit of
    47  the holder of obligations of the corporation from the proceeds of  which
    48  such  loans  are  made.  Loan  proceeds  may be disbursed to an eligible
    49  recipient in accordance with such restrictions as may be imposed by  the
    50  corporation  in  connection  with such loan or obligations of the corpo-
    51  ration from the proceeds of which such loan is  made.  In  the  event  a
    52  municipality shall fail to make any payment due the corporation pursuant
    53  to  any  loan agreement, financing agreement, or other obligation of the
    54  municipality sold to the corporation  or  issued  as  security  for  the
    55  undertaking of the municipality thereunder, the corporation shall certi-
    56  fy  to  the  comptroller, and notify the chairman  of the senate finance

        A. 454                              5
 
     1  committee, the chairman of the assembly ways and  means  committee,  the
     2  director  of  the  division  of the budget and the governing body of the
     3  municipality that such municipality has failed  to  make  such  payment.
     4  Such  certificate  shall  be  in  such  form as may be determined by the
     5  corporation provided such certificate shall specify the exact amount  of
     6  debt  service  and  surcharge,  if  applicable, required to satisfy such
     7  municipality's unpaid obligation. The comptroller, upon receipt of  such
     8  certificate  from  the  corporation,  is authorized to and shall, to the
     9  extent not  otherwise  prohibited  by  law  and  subject  to  any  other
    10  provision  of  law  providing for withholding of payments to the munici-
    11  pality which take precedence over this subdivision, withhold  from  such
    12  municipality  the next succeeding payments of state aid or local assist-
    13  ance otherwise payable to it to the extent necessary to meet the  certi-
    14  fied amount of debt service and surcharge, if applicable, due the corpo-
    15  ration  and  shall  immediately  pay  over  to the corporation as a debt
    16  service payment on behalf of such municipality the amount so withheld.
    17    11. No later than January thirty-first  of  each  calendar  year,  the
    18  corporation  shall submit to the governor, the legislature and the comp-
    19  troller a detailed report of expenditures  of  the  fund.  Such  reports
    20  shall include at a minimum:
    21    (a) An accounting of moneys paid into the fund from statutory sources;
    22    (b) An accounting of moneys expended for purposes of administering the
    23  fund;
    24    (c)  An  accounting  of  all   moneys paid out of the fund to eligible
    25  projects, arranged by project, statutory priority level and area of  the
    26  state;
    27    (d)  An  estimation  of  the amount of diesel emissions reduced by the
    28  installation of eligible projects financed by the fund; and
    29    (e) Any discernible or estimated public health benefit  brought  about
    30  by these diesel emissions reductions.
    31    §  2.  Section 56-0603 of the environmental conservation law, as added
    32  by chapter 413 of the laws of 1996, is amended to read as follows:
    33  § 56-0603. State clean-fueled vehicle projects.
    34    1. The office of general services is authorized, consistent  with  the
    35  strategy  developed pursuant to subdivision three of section two hundred
    36  one-a of the executive law, to conduct a project to acquire clean-fueled
    37  vehicles [and to  develop  and  acquire  the  associated  infrastructure
    38  including  depot  construction],  and  the  New York state environmental
    39  facilities corporation is authorized,  consistent  with  section  twelve
    40  hundred  eighty-five-v  of  the  public  authorities  law, to distribute
    41  monies for the retrofitting of heavy duty diesel engine vehicles.
    42    2. For the purposes of this section, the term  "clean-fueled  vehicle"
    43  shall  mean  any motor vehicle as defined in section one hundred twenty-
    44  five of the vehicle and traffic law, that  uses  electricity,  including
    45  electricity  generated  from  solar  energy,  either stored or generated
    46  on-board, as its primary motive force, or that is fueled  by  compressed
    47  natural gas, propane, methanol, hydrogen or ethanol.
    48    §  3.  Subdivision 1 of section 56-0605 of the environmental conserva-
    49  tion law, as added by chapter 413 of the laws of  1996,  is  amended  to
    50  read as follows:
    51    1.  The  New  York  state energy research and development authority in
    52  cooperation with the department of transportation or the New York  state
    53  environmental facilities corporation is authorized to make state assist-
    54  ance  payments  to  "clean-fueled  buses  projects"  and  is authorized,
    55  consistent with section  twelve  hundred  eighty-five-v  of  the  public

        A. 454                              6
 
     1  authorities law, to distribute monies for the retrofitting of heavy duty
     2  diesel engine vehicles.
     3    §  4.  Section 56-0607 of the environmental conservation law, as added
     4  by chapter 413 of the laws of 1996, is amended to read as follows:
     5  § 56-0607. Other air quality projects.
     6    Of monies received by the state from the sale of bonds pursuant to the
     7  Clean Water/Clean Air Bond Act of 1996, up  to  twenty  million  dollars
     8  ($20,000,000)  shall  be  available  for  disbursements  for air quality
     9  projects pursuant to this section.
    10    The commissioner is authorized in consultation with other state  agen-
    11  cies  as may be necessary, to make state assistance payments or to enter
    12  into contracts in the name of the state for projects that  will  enhance
    13  the  quality  of  the  state's  environment and the state's air quality,
    14  including cooperation with the New York state  environmental  facilities
    15  corporation,  to  distribute  monies  for the retrofitting of heavy duty
    16  diesel engine vehicles, consistent with section twelve  hundred  eighty-
    17  five-v of the public authorities law.
    18    § 5. This act shall take effect immediately.
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