S T A T E O F N E W Y O R K ________________________________________________________________________ 5071--B 2009-2010 Regular Sessions I N S E N A T E April 27, 2009 ___________ Introduced by Sens. THOMPSON, ESPADA, SERRANO -- read twice and ordered printed, and when printed to be committed to the Committee on Finance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- recommitted to the Committee on Finance in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee 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-s to read as follows: 3 S 1285-S. 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. 8 2. AS USED IN THIS SECTION, THE FOLLOWING TERMS HAVE THE FOLLOWING 9 MEANINGS: 10 (A) "BEST AVAILABLE RETROFIT TECHNOLOGY" SHALL HAVE THE SAME MEANING 11 AS SUCH TERM IS DEFINED IN SECTION 19-0323 OF THE ENVIRONMENTAL CONSER- 12 VATION LAW AND REGULATIONS PROMULGATED THEREUNDER. 13 (B) "COMMISSIONER" SHALL MEAN THE COMMISSIONER OF ENVIRONMENTAL 14 CONSERVATION. 15 (C) "ELIGIBLE PROJECT" SHALL MEAN A PROJECT FOR THE PURCHASE AND 16 INSTALLATION OF BEST AVAILABLE RETROFIT TECHNOLOGY FOR HEAVY DUTY VEHI- 17 CLES, INCLUDING THE RETROFIT OF VEHICLES REQUIRED PURSUANT TO SECTION 18 19-0323 OF THE ENVIRONMENTAL CONSERVATION LAW, AND NONROAD VEHICLES AS 19 DEFINED BY 42 USC SECTION 7550. EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD11624-04-0 S. 5071--B 2 1 (D) "ELIGIBLE RECIPIENT" SHALL MEAN ANY PERSON, MUNICIPALITY OR STATE 2 AGENCY SUBJECT TO SECTION 19-0323 OF THE ENVIRONMENTAL CONSERVATION LAW 3 AND ANY PERSON, MUNICIPALITY OR STATE AGENCY THAT IS AN ELIGIBLE ENTITY 4 PURSUANT TO THE ENERGY POLICY ACT OF 2005 DIESEL EMISSIONS REDUCTION 5 PROGRAM. 6 (E) "HEAVY DUTY VEHICLE" OR "VEHICLE" SHALL HAVE THE SAME MEANING AS 7 SUCH TERM IS DEFINED IN SECTION 19-0323 OF THE ENVIRONMENTAL CONSERVA- 8 TION LAW. 9 (F) "RETROFIT" SHALL MEAN THE ADDITION OF NEW OR ENHANCED POLLUTION 10 CONTROL AFTER TREATMENT EQUIPMENT TO DIESEL ENGINES, UPGRADING A DIESEL 11 ENGINE TO A CLEANER CONFIGURATION, AND EARLY REPLACEMENT OF OLDER 12 ENGINES WITH NEWER CLEANER ENGINES. 13 3. (A) THERE IS HEREBY ESTABLISHED IN THE CUSTODY OF THE CORPORATION A 14 FUND TO BE KNOWN AS THE DIESEL EMISSIONS REDUCTION REVOLVING FUND. 15 MONEYS IN THE DIESEL EMISSIONS REDUCTION REVOLVING FUND SHALL BE SEGRE- 16 GATED FROM ALL OTHER FUNDS OF OR IN THE CUSTODY OF THE CORPORATION 17 SUBJECT TO ANY RIGHTS OF HOLDERS OF CORPORATION BONDS OR NOTES ISSUED 18 FOR THE PURPOSES OF THIS SECTION. MONEYS IN THE DIESEL EMISSIONS 19 REDUCTION REVOLVING FUND SHALL ONLY BE USED IN ACCORDANCE WITH THE 20 PROVISIONS OF THIS SECTION PROVIDED, HOWEVER, THAT AN AMOUNT OF UP TO 21 FOUR PERCENT OF THE FUND MAY BE UTILIZED ANNUALLY BY THE CORPORATION TO 22 PAY FOR COSTS OF ADMINISTERING THE FUND. 23 (B) THE FUND SHALL CONSIST OF THE FOLLOWING: 24 (I) NOTWITHSTANDING ANY LAW TO THE CONTRARY, UP TO FOUR MILLION 25 DOLLARS FROM STATE FISCAL YEAR NINETEEN HUNDRED 26 NINETY-SEVEN--NINETY-EIGHT APPROPRIATIONS, OR SUBSEQUENT REAPPROPRIATION 27 FOR SUCH PROJECT PURSUANT TO SECTION 56-0603 OF THE ENVIRONMENTAL 28 CONSERVATION LAW, UP TO FOUR MILLION DOLLARS FROM STATE FISCAL YEAR 29 NINETEEN HUNDRED NINETY-SEVEN--NINETY-EIGHT APPROPRIATIONS, OR SUBSE- 30 QUENT REAPPROPRIATION FOR SUCH PROJECT PURSUANT TO SECTION 56-0605 OF 31 THE ENVIRONMENTAL CONSERVATION LAW, UP TO TWO MILLION DOLLARS FROM THE 32 STATE FISCAL YEAR NINETEEN HUNDRED NINETY-SEVEN--NINETY-EIGHT APPROPRI- 33 ATIONS, OR SUBSEQUENT REAPPROPRIATION FOR SUCH PROJECT PURSUANT TO 34 SECTION 56-0607 OF THE ENVIRONMENTAL CONSERVATION LAW; 35 (II) ALL MONEYS APPROPRIATED FOR THE PAYMENT OF THE COSTS OF DIESEL 36 EMISSIONS REDUCTION ACTIVITIES AND EQUIPMENT PURSUANT TO SECTION ONE OF 37 CHAPTER FIFTY-FIVE OF THE LAWS OF TWO THOUSAND SEVEN, AS REAPPROPRIATED 38 BY CHAPTER FIFTY-FIVE OF THE LAWS OF TWO THOUSAND NINE, AND AS MAY BE 39 SUBSEQUENTLY REAPPROPRIATED; 40 (III) ALL MONEYS APPROPRIATED BY THE STATE LEGISLATURE FOR THE PURPOSE 41 OF THE DIESEL EMISSIONS REDUCTION REVOLVING FUND OR OTHERWISE TRANS- 42 FERRED BY THE STATE FOR DEPOSIT THEREIN BY THE COMPTROLLER AS REQUIRED 43 BY LAW; 44 (IV) PAYMENTS OF PRINCIPAL AND INTEREST MADE BY ELIGIBLE RECIPIENTS 45 PURSUANT TO LOAN OR OTHER AGREEMENTS ENTERED INTO PURSUANT TO SUBDIVI- 46 SION SIX OF THIS SECTION; PROVIDED, HOWEVER, IF SUCH LOANS WERE FINANCED 47 BY THE ISSUANCE OF BONDS OR NOTES OF THE CORPORATION, DEPOSIT OF SUCH 48 PAYMENTS INTO THE FUND SHALL BE SUBJECT TO THE RIGHTS OF THE HOLDERS OF 49 SUCH BONDS OR NOTES TO RECEIVE SUCH MONIES; 50 (V) INVESTMENT EARNINGS ON AMOUNTS IN THE FUND; 51 (VI) ANY OTHER PAYMENTS RECEIVED FROM RECIPIENTS PURSUANT TO A LOAN OR 52 OTHER AGREEMENT MADE PURSUANT TO SUBDIVISION SIX OF THIS SECTION FOR 53 COSTS OF MANAGING AND ADMINISTERING THE PROGRAM; AND 54 (VII) THE PROCEEDS OF BONDS OR NOTES ISSUED BY THE CORPORATION FOR 55 PURPOSES OF PROVIDING FINANCIAL ASSISTANCE TO ELIGIBLE RECIPIENTS. S. 5071--B 3 1 (C) ADDITIONALLY, THE FOLLOWING SOURCES MAY BE DEPOSITED INTO THE 2 FUND, SUBJECT TO APPROPRIATION OR TRANSFER: 3 (I) ALL OR A PORTION OF MONEYS PAID TO THE STATE PURSUANT TO ANY 4 FUTURE REAUTHORIZATION, REAPPROPRIATION, EXTENSION OR EXPANSION OF THE 5 FEDERAL DIESEL EMISSION REDUCTION ACT OR ADOPTION OF ANY FEDERAL ACT OF 6 SUBSTANTIALLY SIMILAR PURPOSE; 7 (II) ALL OR A PORTION OF MONEYS PAID TO THE STATE PURSUANT TO 8 SUBSECTION THREE OF STATE AND TRIBAL ASSISTANCE GRANTS INCLUDED IN TITLE 9 VII OF THE AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009; AND 10 (III) ANY OTHER MONEYS PAID TO THE STATE FOR DEPOSIT IN THE FUND. 11 4. MONEYS IN THE DIESEL EMISSIONS REDUCTION REVOLVING FUND MAY BE 12 INVESTED AS PROVIDED IN SUBDIVISION FOUR OF SECTION TWELVE HUNDRED 13 EIGHTY-FOUR AND SUBDIVISION SIX OF SECTION TWELVE HUNDRED EIGHTY-FIVE-J 14 OF THIS TITLE. 15 5. MONEYS OF THE FUND SHALL BE AVAILABLE ONLY FOR DISTRIBUTION TO 16 ELIGIBLE PROJECTS PURSUANT TO THIS SECTION THAT ARE APPROVED IN CONSUL- 17 TATION WITH THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION. THE DEPARTMENT 18 OF ENVIRONMENTAL CONSERVATION SHALL, IN CONSULTATION WITH THE CORPO- 19 RATION, DEVELOP GUIDANCE FOR SELECTION OF ELIGIBLE PROJECTS, WHICH SHALL 20 ESTABLISH ELIGIBILITY CRITERIA FOR DISTRIBUTION OF MONEYS CONTAINED IN 21 THE FUND CONSISTENT WITH THE PROVISIONS OF THIS SECTION. SUBJECT TO ANY 22 APPLICABLE FEDERAL REQUIREMENTS, PRIORITY SHALL BE GIVEN TO THOSE 23 PROJECTS THAT WILL UTILIZE BEST AVAILABLE RETROFIT TECHNOLOGY AND: 24 (A) ARE SUBJECT TO THE REQUIREMENTS OF SECTION 19-0323 OF THE ENVIRON- 25 MENTAL CONSERVATION LAW; 26 (B) MAXIMIZE PUBLIC HEALTH BENEFITS; 27 (C) PROVIDE THE MOST COST-EFFECTIVE EXPENDITURE OF FUNDS, INCLUDING 28 REDUCTIONS IN DIESEL EMISSIONS PER DOLLAR EXPENDED; AND 29 (D) SERVE AREAS IN NEW YORK THAT ARE: 30 (I) IN NON ATTAINMENT OF THE NATIONAL AMBIENT AIR QUALITY PRIMARY 31 STANDARDS ESTABLISHED FOR PARTICULATE MATTER OR OZONE; 32 (II) ENVIRONMENTAL JUSTICE AREAS AS DESIGNATED BY THE DEPARTMENT OF 33 ENVIRONMENTAL CONSERVATION; OR 34 (III) IMPACTED BY HIGHER LEVELS OF VEHICLE TRAFFIC; OR INDUSTRIAL AND 35 COMMERCIAL AREAS INCLUDING BUT NOT LIMITED TO PORTS, AIRPORTS, TRUCK 36 STOPS, RAIL YARDS, TERMINALS AND DISTRIBUTION CENTERS. 37 6. MONEYS IN THE FUND SHALL BE APPLIED BY THE CORPORATION TO PROVIDE 38 FINANCIAL ASSISTANCE TO ELIGIBLE RECIPIENTS FOR ELIGIBLE PROJECTS AND TO 39 PROVIDE FOR THE ADMINISTRATIVE AND MANAGEMENT COSTS OF THE PROGRAM. AS 40 USED IN THIS SECTION "FINANCIAL ASSISTANCE TO ELIGIBLE RECIPIENTS" MEANS 41 ANY ONE OR MORE OF THE FOLLOWING: 42 (A) MAKING LOANS TO ELIGIBLE RECIPIENTS FOR ELIGIBLE PROJECTS, 43 PROVIDED SUCH LOANS (I) ARE MADE AT MARKET OR BELOW MARKET RATES, (II) 44 DO NOT HAVE A FINAL MATURITY OF MORE THAN THE PERIOD OF PROBABLE USEFUL- 45 NESS AS SET FORTH IN THE LOCAL FINANCE LAW, AND (III) HAVE PRINCIPAL AND 46 INTEREST PAYMENTS WHICH COMMENCE NOT LATER THAN ONE YEAR AFTER INSTALLA- 47 TION OF THE ELIGIBLE PROJECT; 48 (B) BUYING OR REFINANCING DEBT OBLIGATIONS OF ELIGIBLE RECIPIENTS AT 49 MARKET OR BELOW MARKET RATES; 50 (C) GUARANTYING, OR PURCHASING INSURANCE OR OTHER CREDIT ENHANCEMENT 51 FOR ELIGIBLE RECIPIENT OBLIGATIONS WHERE SUCH ACTION WOULD IMPROVE CRED- 52 IT MARKET ACCESS FOR OR REDUCE INTEREST RATES ON SUCH ELIGIBLE RECIPIENT 53 OBLIGATIONS; 54 (D) PROVIDING A SOURCE OF REVENUE OR SECURITY FOR PAYMENT OF PRINCIPAL 55 AND INTEREST ON BONDS OR NOTES ISSUED BY THE CORPORATION IF THE PROCEEDS 56 OF THE SALE OF SUCH BONDS OR NOTES WILL BE DEPOSITED IN THE FUND; S. 5071--B 4 1 (E) PROVIDING INTEREST RATE SUBSIDY ALLOCATIONS TO SUBSIDIZE LOANS TO 2 ELIGIBLE RECIPIENTS MADE FROM THE PROCEEDS OF THE CORPORATION'S BONDS OR 3 NOTES; 4 (F) PROVIDING GRANTS AND PRINCIPAL FORGIVENESS; 5 (G) USING INVESTMENT EARNINGS ON MONEYS IN THE FUND TO PAY, PURSUANT 6 TO SUBDIVISION SEVEN OF THIS SECTION, THE COSTS OF THE CORPORATION AND 7 THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION OF ADMINISTERING AND MANAG- 8 ING THE PROGRAM DESCRIBED IN THIS SECTION. 9 7. (A) NOTWITHSTANDING ANY PROVISIONS OF LAW TO THE CONTRARY, THE 10 CORPORATION SHALL DISTRIBUTE MONEYS CONTAINED IN THE FUND AS FOLLOWS: 11 (I) UNTIL MARCH THIRTY-FIRST, TWO THOUSAND ELEVEN, TWENTY PERCENT OF 12 THE FUND SHALL BE USED TO PROVIDE GRANTS TO STATE AGENCIES FOR THE 13 RETROFITTING OF VEHICLES SUBJECT TO SECTION 19-0323 OF THE ENVIRONMENTAL 14 CONSERVATION LAW; 15 (II) THE REMAINDER OF THE FUND SHALL BE USED TO PROVIDE FINANCIAL 16 ASSISTANCE TO ELIGIBLE RECIPIENTS FOR ELIGIBLE PROJECTS THAT MEET THE 17 GOAL OF EMISSIONS REDUCTION IN ACCORDANCE WITH THE PROVISIONS OF THIS 18 SECTION AND IN ACCORDANCE WITH ANY APPLICABLE FEDERAL REQUIREMENTS. 19 8. ELIGIBLE RECIPIENTS MAY SUBMIT APPLICATIONS TO THE CORPORATION IN 20 SUCH MANNER AS THE CORPORATION DIRECTS. ALL APPLICATIONS SHALL INCLUDE, 21 AT A MINIMUM, THE FOLLOWING INFORMATION: 22 (A) ANY INFORMATION REQUIRED TO DEMONSTRATE ELIGIBILITY TO RECEIVE 23 FEDERAL ASSISTANCE UNDER ANY FEDERAL PROGRAM LISTED IN SUBDIVISION THREE 24 OF THIS SECTION; 25 (B) CALCULATION OF THE EXTENT TO WHICH INSTALLATION OF THE PROPOSED 26 PROJECT WILL REDUCE DIESEL EMISSIONS; 27 (C) THE AIR QUALITY DESIGNATION OF THE AREA IN WHICH VEHICLES PROPOSED 28 TO BE RETROFITTED OR REPLACED OPERATE; 29 (D) EXTENT TO WHICH THE PROPOSED PROJECT MEETS THE PRIORITY CRITERIA 30 OF SUBDIVISIONS FOUR AND FIVE OF THIS SECTION; AND 31 (E) ANY OTHER INFORMATION THAT THE CORPORATION REQUIRES. 32 9. THE CORPORATION, IN CONSULTATION WITH THE DEPARTMENT OF ENVIRON- 33 MENTAL CONSERVATION, IS AUTHORIZED TO: 34 (A) CONSULT WITH ANY OTHER STATE AGENCY OR PUBLIC AUTHORITY WHICH THE 35 CORPORATION DEEMS APPROPRIATE IN THE DEVELOPMENT OF THE DIESEL RETROFIT 36 EMISSIONS REDUCTION PROGRAM DEVELOPED PURSUANT TO THIS SECTION; AND 37 (B) PREPARE, IN CONSULTATION WITH SUCH AGENCIES AND AUTHORITIES, AND 38 MAKE AVAILABLE TO THE PUBLIC, DIESEL EMISSIONS REDUCTION PROGRAM MANUALS 39 AND BROCHURES FOR THE PURPOSE OF ENSURING THAT THE STANDARDS AND CRITE- 40 RIA APPLICABLE TO THE PROGRAM ARE AVAILABLE TO PERSONS WHO MAY WISH TO 41 PARTICIPATE IN THE PROGRAM, TO FACILITATE THE GOALS OF THE PROGRAM. 42 10. IN ADDITION TO THE POWERS GRANTED TO THE CORPORATION ELSEWHERE IN 43 THIS CHAPTER, THE CORPORATION MAY MAKE LOANS TO ELIGIBLE RECIPIENTS FOR 44 PURPOSES OF FINANCING ELIGIBLE PROJECTS FOR WHICH THE FUND MAY BE USED, 45 SUBJECT TO THE LIMITATIONS OF SUBDIVISION SEVEN OF THIS SECTION, MAY 46 ACCEPT THE OBLIGATIONS OF ANY MUNICIPALITY AS SECURITY FOR THE REPAYMENT 47 OF A LOAN TO AN ELIGIBLE RECIPIENT, AND MAY ASSIGN AND PLEDGE SUCH 48 ELIGIBLE RECIPIENT OBLIGATIONS AND LOAN AGREEMENTS FOR THE BENEFIT OF 49 THE HOLDER OF OBLIGATIONS OF THE CORPORATION FROM THE PROCEEDS OF WHICH 50 SUCH LOANS ARE MADE. LOAN PROCEEDS MAY BE DISBURSED TO AN ELIGIBLE 51 RECIPIENT IN ACCORDANCE WITH SUCH RESTRICTIONS AS MAY BE IMPOSED BY THE 52 CORPORATION IN CONNECTION WITH SUCH LOAN OR OBLIGATIONS OF THE CORPO- 53 RATION FROM THE PROCEEDS OF WHICH SUCH LOAN IS MADE. IN THE EVENT A 54 MUNICIPALITY SHALL FAIL TO MAKE ANY PAYMENT DUE THE CORPORATION PURSUANT 55 TO ANY LOAN AGREEMENT, FINANCING AGREEMENT, OR OTHER OBLIGATION OF THE 56 MUNICIPALITY SOLD TO THE CORPORATION OR ISSUED AS SECURITY FOR THE S. 5071--B 5 1 UNDERTAKING OF THE MUNICIPALITY THEREUNDER, THE CORPORATION SHALL CERTI- 2 FY TO THE COMPTROLLER, AND NOTIFY THE CHAIRMAN OF THE SENATE FINANCE 3 COMMITTEE, THE CHAIRMAN OF THE ASSEMBLY WAYS AND MEANS COMMITTEE, THE 4 DIRECTOR OF THE DIVISION OF THE BUDGET AND THE GOVERNING BODY OF THE 5 MUNICIPALITY THAT SUCH MUNICIPALITY HAS FAILED TO MAKE SUCH PAYMENT. 6 SUCH CERTIFICATE SHALL BE IN SUCH FORM AS MAY BE DETERMINED BY THE 7 CORPORATION PROVIDED SUCH CERTIFICATE SHALL SPECIFY THE EXACT AMOUNT OF 8 DEBT SERVICE AND SURCHARGE, IF APPLICABLE, REQUIRED TO SATISFY SUCH 9 MUNICIPALITY'S UNPAID OBLIGATION. THE COMPTROLLER, UPON RECEIPT OF SUCH 10 CERTIFICATE FROM THE CORPORATION, IS AUTHORIZED TO AND SHALL, TO THE 11 EXTENT NOT OTHERWISE PROHIBITED BY LAW AND SUBJECT TO ANY OTHER 12 PROVISION OF LAW PROVIDING FOR WITHHOLDING OF PAYMENTS TO THE MUNICI- 13 PALITY WHICH TAKE PRECEDENCE OVER THIS SUBDIVISION, WITHHOLD FROM SUCH 14 MUNICIPALITY THE NEXT SUCCEEDING PAYMENTS OF STATE AID OR LOCAL ASSIST- 15 ANCE OTHERWISE PAYABLE TO IT TO THE EXTENT NECESSARY TO MEET THE CERTI- 16 FIED AMOUNT OF DEBT SERVICE AND SURCHARGE, IF APPLICABLE, DUE THE CORPO- 17 RATION AND SHALL IMMEDIATELY PAY OVER TO THE CORPORATION AS A DEBT 18 SERVICE PAYMENT ON BEHALF OF SUCH MUNICIPALITY THE AMOUNT SO WITHHELD. 19 11. NO LATER THAN JANUARY THIRTY-FIRST OF EACH CALENDAR YEAR, THE 20 CORPORATION SHALL SUBMIT TO THE GOVERNOR, THE LEGISLATURE AND THE COMP- 21 TROLLER A DETAILED REPORT OF EXPENDITURES OF THE FUND. SUCH REPORT 22 SHALL INCLUDE AT A MINIMUM: 23 (A) AN ACCOUNTING OF MONEYS PAID INTO THE FUND FROM STATUTORY SOURCES; 24 (B) AN ACCOUNTING OF MONEYS EXPENDED FOR PURPOSES OF ADMINISTERING THE 25 FUND; 26 (C) AN ACCOUNTING OF ALL MONEYS PAID OUT OF THE FUND TO ELIGIBLE 27 PROJECTS, ARRANGED BY PROJECT, STATUTORY PRIORITY LEVEL AND AREA OF THE 28 STATE; 29 (D) AN ESTIMATION OF THE AMOUNT OF DIESEL EMISSIONS REDUCED BY THE 30 INSTALLATION OF ELIGIBLE PROJECTS FINANCED BY THE FUND; AND 31 (E) ANY DISCERNABLE OR ESTIMATED PUBLIC HEALTH BENEFIT BROUGHT ABOUT 32 BY THESE DIESEL EMISSIONS REDUCTIONS. 33 S 2. Section 56-0603 of the environmental conservation law, as added 34 by chapter 413 of the laws of 1996, is amended to read as follows: 35 S 56-0603. State clean-fueled vehicle projects. 36 1. The office of general services is authorized, consistent with the 37 strategy developed pursuant to subdivision three of section two hundred 38 one-a of the executive law, to conduct a project to acquire clean-fueled 39 vehicles [and to develop and acquire the associated infrastructure 40 including depot construction], AND THE NEW YORK STATE ENVIRONMENTAL 41 FACILITIES CORPORATION IS AUTHORIZED, CONSISTENT WITH SECTION TWELVE 42 HUNDRED EIGHTY-FIVE-S OF THE PUBLIC AUTHORITIES LAW, TO DISTRIBUTE 43 MONIES FOR THE RETROFITTING OF HEAVY DUTY DIESEL ENGINE VEHICLES. 44 2. For the purposes of this section, the term "clean-fueled vehicle" 45 shall mean any motor vehicle as defined in section one hundred twenty- 46 five of the vehicle and traffic law, that uses electricity, including 47 electricity generated from solar energy, either stored or generated 48 on-board, as its primary motive force, or that is fueled by compressed 49 natural gas, propane, methanol, hydrogen or ethanol. 50 S 3. Subdivision 1 of section 56-0605 of the environmental conserva- 51 tion law, as added by chapter 413 of the laws of 1996, is amended to 52 read as follows: 53 1. The New York state energy research and development authority in 54 cooperation with the department of transportation OR THE NEW YORK STATE 55 ENVIRONMENTAL FACILITIES CORPORATION is authorized to make state assist- 56 ance payments to "clean-fueled buses projects" AND IS AUTHORIZED, S. 5071--B 6 1 CONSISTENT WITH SECTION TWELVE HUNDRED EIGHTY-FIVE-S OF THE PUBLIC 2 AUTHORITIES LAW, TO DISTRIBUTE MONIES FOR THE RETROFITTING OF HEAVY DUTY 3 DIESEL ENGINE VEHICLES. 4 S 4. Section 56-0607 of the environmental conservation law, as added 5 by chapter 413 of the laws of 1996, is amended to read as follows: 6 S 56-0607. Other air quality projects. 7 Of monies received by the state from the sale of bonds pursuant to the 8 Clean Water/Clean Air Bond Act of 1996, up to twenty million dollars 9 ($20,000,000) shall be available for disbursements for air quality 10 projects pursuant to this section. 11 The commissioner is authorized in consultation with other state agen- 12 cies as may be necessary, to make state assistance payments or to enter 13 into contracts in the name of the state for projects that will enhance 14 the quality of the state's environment and the state's air quality, 15 INCLUDING COOPERATION WITH THE NEW YORK STATE ENVIRONMENTAL FACILITIES 16 CORPORATION, TO DISTRIBUTE MONIES FOR THE RETROFITTING OF HEAVY DUTY 17 DIESEL ENGINE VEHICLES, CONSISTENT WITH SECTION TWELVE HUNDRED 18 EIGHTY-FIVE-S OF THE PUBLIC AUTHORITIES LAW. 19 S 5. This act shall take effect immediately.