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2004-2005 NEW YORK STATE EXECUTIVE BUDGET
TRANSPORTATION, ECONOMIC DEVELOPMENT AND ENVIRONMENTAL CONSERVATION
ARTICLE VII LEGISLATION
MEMORANDUM IN SUPPORT

CONTENTS

Article VII Memo Content
PART DESCRIPTION STARTING PAGE NUMBER FOR:
SUMMARY, HISTORY & STATEMENT IN SUPPORT BUDGET IMPLICATION EFFECTIVE DATE
A Authorize funding for the Cornell Supercomputer. 3 (Part A) 18 (Part A) 22 (Part A)
B Provide the annual authorization for the CHIPs and Marchiselli local transportation programs. 3 (Part B) 18 (Part B) 22 (Part B)
C Revise and expand the heavyweight truck permit system administered by the Department of Transportation. 4 (Part C) 18 (Part C) 22 (Part C)
D Delay implementation of the State Hazmat Fingerprinting Program to address Federal requirements. 5 (Part D) 18 (Part D) 22 (Part D)
E Establish a Driver Responsibility Program imposing additional monetary assessments for drivers convicted of drug or alcohol-related offenses; or who refuse to submit to chemical tests; or who accumulate six or more points on their driving records. 5 (Part E) 18 (Part E) 22 (Part E)
F Expand the Waste Tire Management and Recycling Act of 2003 to include new tires sold for motorcycles and all-terrain vehicles. 6 (Part F) 19 (Part F) 22 (Part F)
G Authorize assessments on utilities to be used for New York State Energy Research and Development Authority research costs. 7 (Part G) 19 (Part G) 22 (Part G)
H Authorize certain State agencies to finance their activities with revenues from assessments on public utilities and cable companies. 7 (Part H) 19 (Part H) 23 (Part H)
I Increase all terrain vehicle (ATV) and snowmobile fees; create an ATV trail development and maintenance program; and provide reimbursement to local governments for State Forest Property Tax Credits. 8 (Part I) 19 (Part I) 23 (Part I)
J Authorize the Public Service Commission to redirect certain revenue from currency-operated telephone assessments and underground facility training fees to the General Fund. 9 (Part J) 19 (Part J) 23 (Part J)
K Establish new biennial inspection fee for food establishments; achieve efficiencies in the inspection of retail food stores; and require preventative measures to better protect the safety of the State's food supply. 10 (Part K) 20 (Part K) 23 (Part K)
L Increase and restructure air regulatory fees. 12 (Part L) 20 (Part L) 23 (Part L)
M Authorize the New York State Energy Research and Development Authority to make payments to the General Fund and the Environmental Conservation Special Revenue Fund. 13 (Part M) 20 (Part M) 23 (Part M)
N Make permanent the general loan powers of the New York State Urban Development Corporation. 14 (Part N) 20 (Part N) 23 (Part N)
O Establish the $250 million Regional Economic Growth Program to be administered by the New York State Urban Development Corporation (UDC); and provide UDC, or other public authorities if appropriate, with bonding authority to finance the program. 14 (Part O) 20 (Part O) 24 (Part O)
P Authorize additional purposes for the Environmental Protection Fund. 14 (Part P) 21 (Part P) 24 (Part P)
Q Establish acreage-based fees for stormwater management permits. 16 (Part Q) 21 (Part Q) 24 (Part Q)
R Make permanent provisions relating to petroleum bulk storage fees to support the Oil Spill Program. 16 (Part R) 21 (Part R) 24 (Part R)
S Eliminate annual inspection requirement for pet dealers’ facilities and authorize the Department of Agriculture and Markets to conduct inspections on a risk-based frequency. 17 (Part S) 21 (Part S) 24 (Part S)
T Re-authorize the New York Power Authority to make contributions to the General Fund to fully support the Power for Jobs Program and authorize a new rebate program. 17 (Part T) 21 (Part T) 24 (Part T)

MEMORANDUM IN SUPPORT

A BUDGET BILL submitted by the Governor in Accordance with Article VII of the Constitution

AN ACT to authorize the dormitory authority of the state of New York to provide funding for the Cornell University theory center (Part A); in relation to appropriating monies for transportation projects and costs; to amend chapter 329 of the laws of 1991 amending the state finance law and other laws relating to the establishment of the dedicated highway and bridge trust fund; to amend chapter 61 of the laws of 2000 amending the public authorities law and chapter 329 of the laws of 1991 amending the state finance law and other laws relating to the establishment of the dedicated highway and bridge trust fund, in relation to the authorization of the state's five-year transportation plan (Part B); to amend the vehicle and traffic law, in relation to increasing the allowable number of divisible load permits, to amend current fine schedules for weight violations, and to impose new safety measures; and to repeal certain provisions of such law relating thereto (Part C); to amend part I of chapter 62 of the laws of 2003, amending the vehicle and traffic law relating to requiring criminal history checks, in relation to license endorsements for the transportation of hazardous materials (Part D); to amend the vehicle and traffic law, in relation to driver responsibility assessments (Part E); to amend the environmental conservation law, in relation to the waste tire management and recycling act of 2003 (Part F); to provide for the utilization of utility assessment funds (Part G); to provide for the utilization of utility assessment funds (Part H); to amend the environmental conservation law, the vehicle and traffic law, the parks, recreation and historic preservation law and the real property tax law, in relation to the use of all terrain vehicles on certain public lands, the enforcement of the operation and registration of snowmobile and all terrain vehicles, the management and taxation of certain forest lands; and to repeal certain provisions of the vehicle and traffic law relating thereto (Part I); to amend the public service law and the general business law, in relation to the deposit of moneys to the general fund; and to repeal certain provisions of the state finance law relating thereto (Part J); to amend the agriculture and markets law, in relation to the powers and duties of the department of agriculture and markets with respect to retail food stores and food establishments and enacting a registration fee (Part K); to amend the environmental conservation law, in relation to state facility permit and registration fees and operating permit program fees; and to repeal section 72-0302 of the environmental conservation law, relating to state air quality control fees (Part L); to provide for the transfer of moneys from the New York state energy research and development authority (Part M); to amend chapter 393 of the laws of 1994, amending the New York state urban development corporation act, in relation to the effectiveness thereof (Part N); to authorize the New York state urban development corporation, the dormitory authority of the state of New York, the environmental facilities corporation, the New York state housing finance agency and the thruway authority to issue bonds or notes in support of economic development and high technology projects and to amend the New York state urban development corporation act, in relation to creating the regional economic growth program (Part O); to amend the state finance law and the environmental conservation law, in relation to expanding the purposes for which the environmental protection fund can be used; and in relation to municipal landfill closure projects and state assistance payments for beneficial end-uses and landfill gas management systems and to provide state assistance for municipal landfill gas management projects at active landfills; and in relation to establishing an environmental justice technical assistance grant program; and to repeal certain provisions of the state finance law relating thereto (Part P); to amend the environmental conservation law, in relation to fees for stormwater discharges from construction activity (Part Q); to amend the environmental conservation law and the navigation law, in relation to petroleum bulk storage fees and to amend chapter 83 of the laws of 1995, amending the environmental conservation law and other laws relating to the registration of petroleum bulk storage facilities, in relation to the effectiveness of certain provisions of such chapter (Part R); to amend the agriculture and markets law, in relation to the powers and duties of the department of agriculture and markets with respect to the inspection of pet dealers’ facilities (Part S); and to amend the public authorities law, in relation to authorization of an increased voluntary contribution by the New York power authority and to amend the economic development law, in relation to the award of power for jobs electricity savings rebates (Part T)

PURPOSE:

This bill contains provisions needed to implement the Transportation, Economic Development, and Environmental Conservation portion of the 2004-05 Executive Budget.

SUMMARY OF PROVISIONS, EXISTING LAW, PRIOR LEGISLATIVE HISTORY AND STATEMENT IN SUPPORT:

Part A – Authorize funding for the Cornell Supercomputer.

This bill authorizes the Dormitory Authority to provide up to $1.2 million to Cornell University to support operations of the Cornell Theory Center for fiscal year 2004-05.

Chapter 62 of the Laws of 2003 authorized the Dormitory Authority to provide up to $1.2 million for the support of the Cornell Theory Center.

Similar legislation has been enacted since 1997-98.

The Cornell Theory Center provides business and academia with affordable access to the latest in supercomputer technology. This bill will enable the Center to continue to deliver these services, while providing the Dormitory Authority with the opportunity to avail itself of the resources of Cornell University to address financial and labor management issues.

Part B – Provide the annual authorization for the CHIPs and Marchiselli local transportation programs.

This bill authorizes the 2004-05 CHIPs and Marchiselli local capital highway assistance programs. The authorization continues capital funding for $23.9 million of CHIPs aid that was shifted from operating aid to capital aid in 2002-03.

This bill authorizes funding for the CHIPs and Marchiselli capital aid programs to counties, cities, towns and villages for State fiscal year 2004-05. The current five year authorization levels for CHIPs and Marchiselli were first set by schedule in the 2000-01 Enacted Budget as part of the State's then-new Transportation Plan. The schedule was first amended in 2002-03 to reflect the shift of $23.9 million of operating aid to capital aid. This bill would provide capital program funding authorization for 2004-05 and amend the five year schedule to continue the operating-to-capital shift for 2004-05. State Highway Law requires annual authorization of both the CHIPs and Marchiselli funding levels.

Part C – Revise and expand the heavyweight truck permit system administered by the Department of Transportation.

This bill increases revenues to the Dedicated Highway and Bridge Trust Fund and the General Fund from divisible load (overweight truck) permits by increasing the allowable number of annual permits and amending the current fine schedules for vehicle weight violations. In addition, the bill establishes a new divisible load permit fee for seven-axle vehicles and implements axle and safety equipment requirements.

The bill amends subdivision 15 of section 385 of the Vehicle and Traffic Law (VTL) to add a new permit fee for seven-axle vehicles; increases the number of annual divisible load permits authorized by the Department of Transportation; requires new safety equipment and axle configurations; modifies restrictions on crossing weight-posted bridges; and changes Department procedures on permit revocations.

In addition, the bill repeals subdivision 19 of section 385 of the VTL and adds a new consolidated statewide fine schedule for weight violations. Certain components of the current fine schedules applicable to New York City are retained for a phase-out period.

Section 385 of the VTL sets the maximum dimensions and weights of vehicles that are allowed on the State's highways. It also provides the Commissioner of Transportation with the authority to issue special hauling and divisible load permits for vehicles that exceed the maximum limits. Finally, section 385 establishes fine schedules for vehicle weight violations.

This bill is virtually identical to an Article VII bill proposed in the 2003-04 Executive Budget. Other bills amending divisible load provisions have been introduced by the Senate and the Assembly in the past.

The shipping, trucking and construction industries have created more demand for overweight truck permits than the current statutory limit of 17,000 permits can accommodate. This bill immediately increases the annual divisible load permit authorization to 21,000, with graduated increases up to 25,000 beginning January 1, 2006 and ending January 1, 2009.

While more heavyweight trucks would be permitted on the State's roadways, the bill protects New York's highway infrastructure by requiring less damaging axle configurations on the heaviest categories of trucks and imposing more stringent restrictions on bridge use by overweight trucks.

This bill also unifies four existing fine schedules into a single statewide fine schedule. Thus, it eliminates disparities in weights and penalties between different regions of the State created by the current schedules, and results in more effective enforcement of excessive weight violations statewide.

Part D – Delay implementation of the State Hazmat Fingerprinting Program to address Federal requirements.

This bill changes the effective date for requiring criminal history background checks on commercial drivers that transport hazardous materials (the State Hazmat Fingerprinting Program) to ensure that the State Program is in compliance with the Federal Transportation Security Administration's impending regulations on hazmat background checks (the Federal Hazmat Program). The bill also clarifies that any conflicting or duplicative provisions of the State Program will be superseded by the Federal regulations.

Chapter 62 of the Laws of 2003 required the Commissioner of Motor Vehicles to collect and transmit to the Division of Criminal Justice Services and the Federal Bureau of Investigation fingerprints of commercial drivers applying for the license endorsement to transport hazardous materials. It also required the Commissioner to review the criminal history reports, notify the applicant of the disposition, and conduct hearings as necessary.

This bill revises the implementation date of the State Hazmat Fingerprinting Program to avoid conflict with, or duplication of, Federal regulations that are expected by November 2004. It is anticipated that the Federal regulations will mandate a significant role for the Federal government and will pre-empt conflicting or duplicative aspects of the State Hazmat Program.

Part E – Establish a Driver Responsibility Program imposing additional monetary assessments for drivers convicted of drug or alcohol-related offenses; or who refuse to submit to chemical tests; or who accumulate six or more points on their driving records.

This bill establishes a Driver Responsibility Program that imposes monetary assessments over a three year period on drivers convicted of drug- or alcohol-related offenses; or who refuse to submit to chemical tests; or who accumulate 6 or more points on their driving records.

The bill adds a new section 1199 to the Vehicle and Traffic Law to require drivers convicted of drug- or alcohol-related offenses under the Vehicle and Traffic Law, the Navigation Law or the Parks, Recreation and Historic Preservation Law or drivers who refuse to submit to required chemical tests under such laws to pay a driver responsibility assessment of $1,000 per year for a 3 year period.

The bill also adds a new subdivision 4 to section 503 of the Vehicle and Traffic Law to require drivers who have accumulated 6 or more points on their driving record within an 18 month period to pay a driver responsibility assessment of $100 per year for 3 years for the first 6 points of record, and an additional $25 per year for 3 years for each additional point over 6 points.

In both cases, drivers would be notified by the Department of Motor Vehicles (DMV) of their liability for the assessment and the time and manner for making the required payments. Failure to pay on a timely basis would result in the suspension of a driver's license.

Under existing law, drivers must pay various fines (in some cases, mandatory minimums), surcharges and crime victim assistance fees dependent upon the charge to the court or administrative tribunal in which they are convicted, and chemical test refusers must pay civil penalties directly to DMV. The assessments in this proposal would be in addition to any such fines, fees, penalties and surcharges.

These driver responsibility assessments will serve a dual purpose. First, they will enhance highway safety by serving as a meaningful deterrent for those who endanger others by their irresponsible and, in some cases, criminal driving behavior. Second, it will raise significant State revenues from those who persist in inappropriate behavior.

Part F – Expand the Waste Tire Management and Recycling Act of 2003 to include new tires sold for motorcycles and all-terrain vehicles.

This bill imposes a waste tire management and recycling fee of $2.50 per tire on new motorcycle and all-terrain vehicle (ATV) tire sales.

This bill expands on provisions contained in the Waste Tire Management and Recycling Act of 2003 (Part V1, Chapter 62 of the Laws of 2003) by imposing a fee of $2.50 per tire on all new tires sold for motorcycles, limited use vehicles and ATVs.

Current law imposes a waste tire management and recycling fee of $2.50 per new tire on vehicles that could qualify for registration pursuant to section 401 of the Vehicle and Traffic Law (VTL). Because motorcycles, limited use vehicles and ATVs are registered pursuant to sections 410, 2261 and 2282 of the VTL, respectively, tires on these vehicles are not currently subject to the recycling fee.

Since tires from these vehicles have contributed to the problems associated with illegal waste tire stockpiles, a waste tire management and recycling fee should be imposed on these vehicles as well. This will help finance the remediation of these stockpiles and the development of new markets for recycled waste tires.

Part G – Authorize assessments on utilities to be used for New York State Energy Research and Development Authority research costs.

This bill authorizes the New York State Energy Research and Development Authority (NYSERDA) to obtain revenue for certain of its programs from assessments on gas corporations and electric corporations, pursuant to section 18-a of the Public Service Law.

The bill authorizes NYSERDA to finance its Research, Development and Demonstration Program and its Policy and Planning Program with revenues from assessments on gas corporations and electric corporations. Section 18-a of the Public Service Law enables the Department of Public Service to assess gas corporations and electric corporations for the expenses of these programs. This is an Article VII provision that is annually authorized and was last enacted as Chapter 62 of the Laws of 2003. Without this legislation, NYSERDA could not continue operating necessary energy programs in the 2004-05 State fiscal year.

Part H – Authorize certain State agencies to finance their activities with revenues from assessments on public utilities and cable companies.

This bill provides authorization to certain State agencies to finance their activities with revenues generated from assessments on public utilities and cable television companies.

Section 1 of the bill authorizes certain expenditures of the Department of Health as eligible expenses for cable television assessment revenue. Sections 2 through 7 authorize certain expenditures for the departments of Agriculture and Markets, Economic Development, and Environmental Conservation, the Office of Parks, Recreation and Historical Preservation, the Consumer Protection Board and the Office of Public Security (OPS) as eligible expenses for utility assessment revenue.

Section 18-a of the Public Service Law authorizes the Department of Public Service (DPS) to assess public utility companies for the costs associated with the operations of the Public Service Commission (PSC) and the DPS. Section 217 of the Public Service Law authorizes the DPS to assess cable television companies for costs associated with the operations of the PSC and DPS. Chapter 62 of the Laws of 2003 provided similar authorization. However, in 2003-04 eligible expenses for OPS related only to the cyber security and critical infrastructure coordination office. In 2004-05, eligible OPS expenses have been expanded to include providing funding for a critical infrastructure security study.

This bill ensures that the affected agencies will be able to expend utility assessment funds on critical State programs.

Part I – Increase all-terrain vehicle (ATV) and snowmobile fees; create an ATV trail development and maintenance program; and provide reimbursement to local governments for State Forest Property Tax Credits.

This bill sets forth requirements and limitations on the use of all-terrain vehicles (ATVs) on certain public lands, and on the enforcement of ATV requirements. It establishes a State assistance program for ATV trail development, maintenance, education and enforcement, and increases snowmobile and ATV registration fees to provide revenues to support these programs and to provide General Fund revenue. Additionally, this bill establishes a program to reimburse local governments and school districts for property tax revenues lost as a result of State forest management tax credit programs.

The bill includes provisions that:

Current law sets an annual fee of $10 for both residents and non-residents for the registration of ATVs and does not provide for an ATV trail development and maintenance program or comprehensive regulation of ATVs.

Current fees for snowmobiles are $25 for residents and $35 for non-residents. Of these amounts, $20 and $30 from resident and non-resident fees respectively are dedicated to the Snowmobile Trail Development and Maintenance Fund and $5 is deposited to the General Fund. One-half of certain fines for violations of snowmobile statutes is also deposited in the Snowmobile Trail Development and Maintenance Fund.

RPTL sections 480 and 480-a establish tax exempt programs for forest land which is being devoted to forest crop production, but do not authorize State assistance payments to local governments which experience a reduction in their tax base as a result of such exemptions.

Chapter 402 of the Laws of 1986 established ATV registration fees. Snowmobile fees were last increased in 2002-03 (Chapter 82 of the Laws of 2002). Proposals to provide forest property tax reimbursement to municipalities were contained in the 1999-00 and 2001-02 Executive Budgets but were not enacted.

The bill is necessary to enact a comprehensive State management policy to govern the use of ATVs and snowmobiles in a manner that balances public enjoyment of such recreational vehicles and environmental protection. In addition, the bill increases registration fees for such vehicles to raise revenues needed to implement these and other environmental programs.

Finally, the bill establishes a local government reimbursement program for State Forest Property Tax Credits. Although forest tax laws benefit both the forest landowner and the general public, they can be a fiscal burden on the towns in which lands within the programs are located. This bill would address that issue by providing State assistance payments to those local governments which experience a greater than one percent reduction in their tax base due to the forest tax exemptions under sections 480 and 480a of the RPTL, subject to annual appropriations.

Part J – Authorize the Public Service Commission to redirect certain revenue from currency-operated telephone assessments and underground facility training fees to the General Fund.

This bill authorizes the redirection of moneys to the General Fund by amending Public Service and General Business Law, and removes a sunset date.

Section 1 redirects moneys from the Customer Owned Currency-Operated Telephone (COCOT) Enforcement Fund to the General Fund and removes the March 31, 2006 sunset date.

Section 2 redirects moneys recovered from penalties from the Underground Facilities Safety Training Account to the General Fund.

Sections 3 and 4 repeal the COCOT Fund and the Underground Facilities Safety Training Account from State Finance Law.

Currently, subdivision 11 of section 92-c of the Public Service Law provides that monthly access fees be deposited in the COCOT Enforcement Fund as established by section 92-w of the State Finance Law.

Paragraph c of subdivision 1 of section 765 of the General Business Law, as amended by Chapter 522 of the Laws of 2000, provides that penalties recovered shall be deposited in the Underground Facilities Safety Training Account, as established by section 97-www of the State Finance Law.

In the 2003-04 Enacted Budget, the Legislature added a March 31, 2006 sunset date to the COCOT Fund; and agreed to transfer moneys in both of these accounts to the General Fund, but only on a one-time basis. This bill will make the change permanent. Also in 2003-04, the COCOT Program was eliminated from the Department of Public Service; any complaints related to these telephones are now being handled by the Department's Office of Consumer Advocacy. The supplemental moneys collected from underground utility-related penalties, which would be redirected by this bill, are not needed to adequately perform the statewide educational program.

Part K – Establish new biennial inspection fee for food establishments; achieve efficiencies in the inspection of retail food stores; and require preventative measures to better protect the safety of the State's food supply.

This bill establishes a new registration and registration fee for food establishments not already registered, licensed or permitted by the Department of Agriculture and Markets (the Department). It also achieves efficiencies in the inspection of retail food stores, and requires preventative measures to better protect the safety of the State's food supply.

The bill amends Agriculture and Markets Law (AML) to:

AML Article 20-C requires, with certain exceptions, that food processing establishments be licensed. Food salvagers, slaughterhouses and refrigerated warehouses are licensed pursuant to AML Articles 17-B, 5-A and 19, respectively. The Department of Health and municipal departments of health license various food establishments, and the United States Department of Agriculture regulates certain food processing facilities under the Federal meat, poultry and egg inspection provisions.

However, not all food establishments located within the State are required to be registered, permitted or licensed and there is no requirement that such establishments take preventative measures to minimize the risk that the food under their control will be subjected to tampering or criminal or terrorist activity. Section 500 of the AML requires that the Department inspect retail food stores once every 12 months.

The provisions to require the registration of food establishments and to require food establishments to take preventative measures to minimize risk were introduced in 2003 but not enacted.

To better assure the security of New York State's food supply, it is critical that regulatory officials be able to identify, locate and contact the operators of establishments where such food is located to ensure that preventative measures are being taken to minimize the risk that food in these establishments remain tamper-free and not subject to criminal or terrorist actions. This bill will further these goals by requiring the registration of all food establishments not currently registered, permitted or licensed by the departments of Agriculture and Markets or Health, local health departments, or by the United States Department of Agriculture and requiring all food establishments to take preventative measures.

The authority to exempt certain establishments, such as small businesses, from registration or the payment of registration fees will enable the Department to issue such exemptions to establishments based on the size and nature of their operations. The requirement that all food establishments take the preventative measures deemed necessary by the Commissioner will serve to minimize the risks that are identified.

Subdivision 4 of section 500 of the AML requires the Department to perform annual inspections of Type VI establishments that pose little or no threat to public health, resulting in over 10,000 additional annual inspections. Amendment of this provision to permit the inspection of food stores in accordance with a risk-based frequency established by the Commissioner and determined by establishment size, type of food offered for sale and other factors that may affect public health, would remove a significant workload and expense for the Department without posing a risk to public health and safety. Stores would also continue to be inspected on a random basis and when there are complaints.

The provision that authorizes the Commissioner to establish preventative measures for food establishments will help ensure a safe and wholesome food supply for the health and well being of the citizens of the State and protect the economic viability of the State's food industry.

Part L – Increase and restructure air regulatory fees.

This bill restructures fees for emitters of both major and minor sources of air pollution. In addition, this bill establishes a minimum annual fee of $1,250 for emitters of major sources of air pollution.

This bill repeals section 72-0302 of the ECL and adds a new section 72-0302 establishing a flat Air Regulatory Program fee structure for approvals issued for the operation of minor sources of air pollution. The new fee structure establishes a $1,250 fee for each State Facility permit or other operating approval, a $200 fee for each registration, and $100 for any municipality or not-for-profit seeking a State Facility permit or other operating approval or registration.

The existing fees for minor sources of air pollution are based on three factors: the source type (combustion, incineration or process); the size of the source; and the number of emissions points. Generally, a facility is billed $100, $160, or $2000 per emission point depending on its type and size. The fees for minor sources were last increased by Chapter 608 of the Laws of 1993.

This bill establishes a more efficient way for the Department of Environmental Conservation (the Department) to assess annual Air Regulatory Program fees. By eliminating ambiguities that can sometimes arise under current law, a flat fee schedule streamlines the administration of these fees and reduces the number of disputes between the Department and regulated entities.

This bill allows the Department to focus its existing resources on permitting, monitoring, and inspecting major sources of air pollution that have greater potential to impact the environment. At the same time, this bill reduces the technical and administrative burdens placed on the regulated community and ensures that facilities know the amount of their annual fee in advance.

Under this bill, the fees to be paid by a regulated entity would be based upon the nature and amount of work associated with each type of permit, registration or approval. For example, a State Facility Air permit requires a detailed review, including extensive database entry and analysis and specification of permit operating conditions; whereas a registration is a ministerial action that should require less review by the Department. As such, a higher annual flat fee is warranted for a State Facility Permit than for a registration because more staff time is required to review and process these permits.

In addition, this bill amends ECL section 72-0303 to provide that major sources of air pollution regulated through the Title V Operating Permit Program pay a minimum of $1,250 annually. Generally, Title V facilities are sources that annually emit 100 tons or more of regulated air pollutants.

Title V facilities currently pay a fee, last amended by Chapter 413 of the Laws of 1999, in the amount of $45 per ton for up to 6,000 tons of each regulated air contaminant emitted. The Title V program has never had a minimum fee. Regulated contaminants subject to the tonnage fee are oxides of nitrogen, volatile organic compounds, sulfur dioxide, particulates and hazardous air pollutants.

The current fee structure does not reflect the substantial technical assistance and administrative staff time spent on Title V facilities. For example, these facilities require annual inspections and technical review of monitoring reports and other documents as they are reported. In addition, every five years, each Title V permit application requires in-depth study and review prior to issuance. A minimum fee of $1,250 is necessary to support direct staff time dedicated to regulating these facilities.

Part M – Authorize the New York State Energy Research and Development Authority to make payments to the General Fund and the Environmental Conservation Special Revenue Fund.

This bill authorizes the New York State Energy Research and Development Authority (NYSERDA) to make payments to the General Fund and the Environmental Conservation Special Revenue Fund.

This bill authorizes NYSERDA to make a $913,000 payment to the General Fund from unrestricted corporate funds and a $330,000 payment to the Department of Environmental Conservation Special Revenue Fund Low-Level Radioactive Waste Account from funds rebated to New York from the Federal government. The Authority has the authorization to establish, assess and collect fees for costs associated with the disposal of low-level radioactive waste generators in New York. Current law does not enable NYSERDA to make a deposit to the State without specific authorization. Chapter 62 of the Laws of 2003 provided a one year similar authorization. Without this bill, NYSERDA could not make these contributions. The $913,000 transfer will help offset New York State's debt service requirements relating to West Valley.

Part N – Make permanent the general loan powers of the New York State Urban Development Corporation.

This bill makes permanent the general loan powers of the New York State Urban Development Corporation (UDC).

Chapter 393 of the Laws of 1994, as amended by section 1 of Part M1 of Chapter 62 of the Laws of 2003, provides the UDC with the general power to make loans until July 1, 2004.

Several similar bills repealing the sunset provision have previously been introduced, but not enacted. Provisions to extend the sunset date were enacted in 1997, 1998, 2000, 2002, and 2003.

This bill is necessary to extend the UDC's general loan powers. Absent enactment of this bill, UDC will only be able to make loans in connection with certain State-funded economic development programs that include loan authorization.

Part O – Establish the $250 million Regional Economic Growth Program to be administered by the New York State Urban Development Corporation (UDC); and provide UDC, or other public authorities if appropriate, with bonding authority to finance the program.

This bill establishes a new, $250 million Regional Economic Growth Program to be administered by the New York State Urban Development Corporation (UDC), and authorizes UDC, or other public authorities if appropriate, to issue bonds to finance the program.

This is a new proposal. The bill allows the State to make important financial contributions to support economic development projects across the State, such as high technology research facilities, civic centers and other municipal facilities. State funding will be targeted to major projects that will create significant regional economic development benefits.

Part P – Authorize additional purposes for the Environmental Protection Fund.

This bill amends the Environmental Protection Act of 1993 to expand the purposes for which the Environmental Protection Fund (EPF) may be used.

This bill amends the Environmental Conservation Law and the State Finance Law to permanently authorize the EPF to be used for additional purposes including: State Parks and Lands Infrastructure projects to preserve, improve, or rehabilitate State Parks and lands resources; assessment of natural resource damages in the Hudson River; implementation of the Hudson River Estuary Management Plan; county Soil and Water Conservation District activities; the Hudson River Park project; and Historic Barns projects. It also would authorize funding from the EPF for beneficial end-use projects at closed municipal landfills and for municipal landfill gas management projects at active landfills, and for environmental justice projects. Additionally, the State Finance Law is amended to authorize transfers of up to $278.6 million from the General Fund. This reflects a nominal increase from current law, and is necessary to reflect a $10 million sweep proposed in the 2004-05 Executive Budget.

The Environmental Protection Act of 1993 established the EPF as a dedicated fund comprising of revenues from: 1) proceeds from the sale/lease of certain State lands; 2) annual service charges on conservation license plates; 3) proceeds from the settlement of a lawsuit brought by the State for an oil spill on Long Island; 4) interest earnings; and 5) a portion of the State's revenues from the Real Estate Transfer Tax (RETT).

Under existing law, the EPF may be used for the following purposes, pursuant to appropriation:

The use of the EPF for the Hudson River Park project is currently limited to recreational purposes only, and EPF funds may not currently be directed to a public authority, public benefit corporation or not-for-profit corporation, including the Hudson River Park Trust, for the purpose of developing the Park.

Eligible municipal landfill closure and gas management projects do not currently include beneficial end-uses or municipal landfill gas management projects.

Funding of environmental justice projects is not currently authorized in the EPF. Further, DEC's environmental justice program is not currently codified in the Environmental Conservation Law.

Current State Finance Law allows for the transfer of up to $277.96 million if the fund is unable to meet its obligations.

Similar bills have been introduced annually with the Executive Budget, and statutory authorization has been previously enacted for various programs, including the Long Island Central Pine Barrens and South Shore Estuary Reserve Planning programs, the Pesticide Data Base, and Waste Prevention Programs.

Part Q – Establish acreage-based fees for stormwater management permits.

This bill establishes acreage-based fees for stormwater management permits related to construction activity.

Section 72-0602 of the Environmental Conservation Law (ECL) is amended to add a new paragraph q creating an acreage-based fee for State Pollutant Discharge Elimination System (SPDES) stormwater permits for construction activities. The fee would be $50 per acre disturbed plus $300 per future impervious acre. Facilities owned or managed by the State or local governments would be exempt.

The existing stormwater permit fee for construction activities is $50, regardless of the amount of land disturbed or the amount of impervious acreage created by a facility. This fee was established in 1988 and has not been increased since that time.

By linking permit fees to the amount of area impacted by construction activity, the new acreage-based fee would provide developers an economic incentive to minimize the potential environmental impact of construction projects.

Part R – Make permanent provisions relating to petroleum bulk storage fees to support the Oil Spill Program.

This bill permanently extends the existing authorization for the payment of fees for the storage of petroleum and for the deposit of such fees into the New York Environmental and Spill Compensation Fund (Oil Spill Fund) to support the administration and enforcement of the oil spill and petroleum bulk storage programs.

This bill eliminates the sunset on provisions of law that require: 1) the payment of petroleum bulk storage fees, and deposit of such fees into the Oil Spill Fund; and 2) such fees to be used to pay the costs of administering and enforcing the petroleum bulk storage program. These provisions were last extended by Chapter 413 of the Laws of 1999 and are currently scheduled to expire April 1, 2004. Additionally, these provisions were amended by Chapter 1 of the Laws of 2003 to raise the fees from $250 to $500.

Absent enactment, insufficient revenues will be available to continue Oil Spill Program activities, including the inspection of petroleum bulk storage facilities, immediate response to petroleum spills, and oversight of the remediation of the spills to protect the environment and public health and safety.

Part S – Eliminate the annual inspection requirement for pet dealers’ facilities and authorize the Department of Agriculture and Markets to conduct inspections on a risk-based frequency.

This bill eliminates the annual inspection requirement for pet dealers’ facilities and permits the Department of Agriculture and Markets to conduct risk-based inspections.

This bill eliminates the requirement that pet dealers and breeders be inspected by the Department of Agriculture and Markets annually. The Department would retain its authority to inspect such facilities and could schedule inspections based on the risk of non-compliance posed by a facility or after a complaint is received. Existing law, enacted in 2000, requires an annual inspection of each and every pet dealer, other than those that engage in the sale of less than 25 animals annually. This bill permits the Department to schedule inspections in accordance with a risk-based assessment established by the Commissioner. Standards for such an assessment include: the size, nature of operations and the inspection history of a particular operation. Thus, the Department's resources can be better focused on the pet dealer facilities that pose the greatest risk of non-compliance. Existing law also requires that the facilities of a pet dealer be inspected before a license is issued. This requirement will continue in order to ensure that pet dealers do not receive authority to operate unless their facilities have been found to comply with the applicable laws and regulations.

Part T – Re-authorize the New York Power Authority to make contributions to the General Fund to fully support the Power for Jobs Program and authorize a new rebate program.

This bill authorizes the New York Power Authority (NYPA) to make a voluntary contribution to the General Fund equal to 100 percent of the gross receipts tax (GRT) credit provided to businesses relating to Power for Jobs (PFJ) for phases four and five of the program, and establishes a new customer rebate program in the Urban Development Corporation (UDC) funded by the New York State Power Authority to continue PFJ benefits.

This bill also increases the statutory cap on NYPA's total contributions for the PFJ program and the new rebate program to $235 million. Permanent law currently authorizes NYPA to make a contribution to the General Fund equal to 50 percent of the GRT credit available each year to all local electric distribution companies relating to phase four and phase five of the program. Chapter 85 of the laws of 2002 and Chapter 62 of the laws of 2003 increased NYPA's contribution limit from 50 percent to 100 percent for SFY 2002-03 and 2003-04. Without this bill, NYPA would no longer be required to make any payments.

To allow the PFJ program to continue, this bill also creates a new $10 million customer rebate program in UDC funded by NYPA to extend PFJ benefits.

BUDGET IMPLICATIONS:

Part A – Authorize funding for the Cornell Supercomputer.

Enactment of this bill is necessary to implement the 2004-05 Executive Budget, which assumes that the Dormitory Authority will provide up to $1.2 million to Cornell University for operation of the Cornell Theory Center.

Part B – Provide the annual authorization for the CHIPs and Marchiselli local transportation programs.

Enactment of this bill is necessary to implement the 2004-05 Executive Budget.

Part C – Revise and expand the heavyweight truck permit system administered by the Department of Transportation.

Enactment of this bill is necessary to implement the 2004-05 Executive Budget, which includes $2.25 million in new annual revenues associated with these increased permit issuances and fine levels.

Part D – Delay implementation of the State Hazmat Fingerprinting Program to address Federal requirements.

Enactment of this bill is necessary to implement the 2004-05 Executive Budget because the 2004-05 Financial Plan includes funding for five months of State costs of administering the anticipated Federal Hazmat Program.

Part E – Establish a Driver Responsibility Program imposing additional monetary assessments for drivers convicted of drug or alcohol-related offenses; or who refuse to submit to chemical tests; or who accumulate six or more points on their driving records.

Enactment of this bill is necessary to implement the 2004-05 Executive Budget, which includes $17.5 million in new recurring revenues associated with these new assessments. These revenues are slightly offset by the DMV expenditures necessary to administer the new program.

Part F – Expand the Waste Tire Management and Recycling Act of 2003 to include new tires sold for motorcycles and all-terrain vehicles.

Enactment of this bill is necessary to implement the 2004-05 Executive Budget, which assumes an additional $300,000 in revenue from this action.

Part G – Authorize assessments on utilities to be used for New York State Energy Research and Development Authority research costs.

Enactment of this bill is necessary to implement the 2004-05 Executive Budget because it authorizes expenditures of section 18-a moneys for NYSERDA. A $14.7 million appropriation is included in NYSERDA's budget for these energy programs.

Part H – Authorize certain State agencies to finance their activities with revenues from assessments on public utilities and cable companies.

Enactment of this bill is necessary to implement the 2004-05 Executive Budget because it ensures the recovery of expenses incurred by the departments of Health, Agriculture and Markets, Economic Development, and Environmental Conservation, the Office of Parks, Recreation and Historical Preservation, the Consumer Protection Board and the Office of Public Security.

Part I – Increase all-terrain vehicle (ATV) and snowmobile fees; create an ATV trail development and maintenance program; and provide reimbursement to local governments for State Forest Property Tax Credits.

The snowmobile and the ATV registration fee increases will provide approximately $7.5 million combined for Snowmobile Trail Development and Maintenance Fund and the newly established ATV Program.

Additionally, these fee increases will also generate $5.9 million in additional General Fund revenues.

Part J – Authorize the Public Service Commission to redirect certain revenue from currency-operated telephone assessments and underground facility training fees to the General Fund.

Enactment of this bill is necessary to implement the 2004-05 Executive Budget because the provisions of this bill provide $487,000 in General Fund relief.

Part K – Establish new biennial inspection fee for food establishments; achieve efficiencies in the inspection of retail food stores; and require preventative measures to better protect the safety of the State's food supply.

Enactment of this bill is necessary to implement the 2004-05 Executive Budget, which includes $381,000 in new biennial revenues associated with the new fee and $1.1 million in related General Fund savings as a result of the inspection of food stores in accordance with a risk-based frequency established by the Commissioner.

Part L – Increase and restructure air regulatory fees.

Enactment of this bill is necessary to implement the 2004-05 Executive Budget which includes savings and additional revenue from the restructuring of the non-Title V fee schedule and the establishment of a minimum Title V Operating Permit fee.

Part M – Authorize the New York State Energy Research and Development Authority to make payments to the General Fund and the Environmental Conservation Special Revenue Fund.

Enactment of this bill is necessary to implement the 2004-05 Executive Budget because it ensures that NYSERDA will make these payments to the General Fund and the Environmental Conservation Special Revenue Fund as contemplated in the Financial Plan.

Part N – Make permanent the general loan powers of the New York State Urban Development Corporation.

Enactment of this bill is necessary to implement the 2004-05 Executive Budget, which assumes that UDC will provide certain economic development assistance through loans, rather than grants. Absent this legislation, the Corporation could not fund loans approved through the Metropolitan Economic Revitalization Fund.

Part O – Establish the $250 million Regional Economic Growth Program to be administered by the New York State Urban Development Corporation (UDC); and provide UDC, or other public authorities if appropriate, with bonding authority to finance the program.

Enactment of this bill is necessary to implement the 2004-05 Executive Budget, which assumes that a new $250 million economic development capital program will be established and financed with public benefit corporation bond proceeds.

Part P – Authorize additional purposes for the Environmental Protection Fund.

Enactment of this bill is necessary to implement the 2004-05 Executive Budget, which includes EPF appropriations for State Parks and Lands Infrastructure and Stewardship projects, the Hudson River Park, Historic Barns, the Hudson River Estuary, and other important environmental efforts.

Part Q – Establish acreage-based fees for stormwater management permits.

Enactment of this bill is necessary to implement the 2004-05 Executive Budget, which assumes the new acreage-based fee for SPDES stormwater permits would generate approximately $7 million in revenues for the General Fund.

Part R – Make permanent provisions relating to petroleum bulk storage fees to support the Oil Spill Program.

Enactment of this bill is necessary to implement the 2004-05 Executive Budget, which assumes that these revenues will be available to administer and enforce the Oil Spill and Petroleum bulk Storage programs.

Part S – Eliminate the annual inspection requirement for pet dealers’ facilities and authorize the Department of Agriculture and Markets to conduct inspections on a risk-based frequency.

Enactment of this bill is necessary to implement the 2004-05 Executive Budget which includes $300,000 in General Fund savings related to the inspection of pet breeders and dealers in accordance with a risk-based frequency established by the Commissioner.

Part T – Re-authorize the New York Power Authority to make contributions to the General Fund to fully support the Power for Jobs Program and authorize a new rebate program.

Enactment of this bill is necessary to implement the 2004-05 Executive Budget as it will provide significant General Fund savings, estimated at $100 million in 2004-05. The bill also extends the successful economic development program Power for Jobs by authorizing NYPA to provide approximately $10 million for a new customer rebate program to be administered by UDC.

EFFECTIVE DATE:

Part A – Authorize funding for the Cornell Supercomputer.

This bill takes effect April 1, 2004.

Part B – Provide the annual authorization for the CHIPs and Marchiselli local transportation programs.

This bill takes effect April 1, 2004.

Part C – Revise and expand the heavyweight truck permit system administered by the Department of Transportation.

This bill takes effect April 1, 2004, except that sections 3 and 4, pertaining to permit hearings and fine schedules, will take effect 90 days after enactment.

Part D – Delay implementation of the State Hazmat Fingerprinting Program to address Federal requirements.

This bill takes effect immediately, and ties directly to Federal regulations.

Part E – Establish a Driver Responsibility Program imposing additional monetary assessments for drivers convicted of drug or alcohol-related offenses; or who refuse to submit to chemical tests; or who accumulate six or more points on their driving records.

This bill takes effect 90 days after enactment.

Part F – Expand the Waste Tire Management and Recycling Act of 2003 to include new tires sold for motorcycles and all-terrain vehicles.

This bill takes effect 60 days after enactment.

Part G – Authorize assessments on utilities to be used for New York State Energy Research and Development Authority research costs.

This bill takes effect April 1, 2004.

Part H – Authorize certain State agencies to finance their activities with revenues from assessments on public utilities and cable companies.

This bill takes effect April 1, 2004.

Part I – Increase all-terrain vehicle (ATV) and snowmobile fees; create an ATV trail development and maintenance program; and provide reimbursement to local governments for State Forest Property Tax Credits.

This bill takes effect April 1, 2004, except that sections 5, 13 and 14, pertaining to registration fees and trail development and maintenance fees take effect 90 days after enactment.

Part J – Authorize the Public Service Commission to redirect certain revenue from currency-operated telephone assessments and underground facility training fees to the General Fund.

This bill takes effect April 1, 2004.

Part K – Establish new biennial inspection fee for food establishments; achieve efficiencies in the inspection of retail food stores; and require preventative measures to better protect the safety of the State's food supply.

This bill takes effect immediately.

Part L – Increase and restructure air regulatory fees.

This bill takes effect April 1, 2004

Part M – Authorize the New York State Energy Research and Development Authority to make payments to the General Fund and the Environmental Conservation Special Revenue Fund.

This bill takes effect April 1, 2004.

Part N – Make permanent the general loan powers of the New York State Urban Development Corporation.

This bill takes effect April 1, 2004.

Part O – Establish the $250 million Regional Economic Growth Program to be administered by the New York State Urban Development Corporation (UDC); and provide UDC, or other public authorities if appropriate, with bonding authority to finance the program.

This bill takes effect April 1, 2004.

Part P – Authorize additional purposes for the Environmental Protection Fund.

This bill takes effect April 1, 2004.

Part Q – Establish acreage-based fees for stormwater management permits.

This bill takes effect April 1, 2004.

Part R – Make permanent provisions relating to petroleum bulk storage fees to support the Oil Spill Program.

This bill takes effect immediately, provided, however, that the amendments to the reverter versions of the petroleum bulk storage fees contained in the Environmental Conservation Law and the Navigation Law shall take effect on March 31, 2004.

Part S – Eliminate the annual inspection requirement for pet dealers’ facilities and authorize the Department of Agriculture and Markets to conduct inspections on a risk-based frequency.

This bill takes effect immediately.

Part T – Re-authorize the New York Power Authority to make contributions to the General Fund to fully support the Power for Jobs Program and authorize a new rebate program.

This bill takes effect April 1, 2004.