NY Pub Auth L § 1285 (2021)
2021 New York Laws PBA - Public Authorities Article 5 - Public Utility Authorities Title 12 - New York State Environmental Facilities Corporation 1285 - Special Powers of the Corporation.

§  1285. Special powers of the corporation. In order to effectuate the purposes of this title, the corporation shall have the following special powers:   1. Construction, operation and maintenance of sewage treatment  works, sewage  collecting systems and solid waste disposal facilities on behalf of a municipality. (a) The corporation and any municipality having power to construct sewage treatment works, sewage collecting systems or  solid waste  disposal facilities by resolution of its governing body may enter into a contract for the construction of sewage treatment  works,  sewage collecting systems or solid waste disposal facilities by the corporation for  such municipality upon such terms and conditions as the corporation shall determine to be reasonable,  including  but  not  limited  to  the reimbursement  of  all  costs  of  such  construction and claims arising therefrom.  (b) The corporation and any municipality having power to  operate  and maintain  sewage  treatment  works or solid waste disposal facilities by resolution of its governing body may  enter  into  a  contract  for  the operation  and  maintenance  of  sewage  treatment  works or solid waste disposal facilities by the corporation for such municipality  upon  such terms   and   conditions  as  the  corporation  shall  determine  to  be reasonable, including but not limited to the reimbursement of all  costs of such operation and maintenance and claims arising therefrom.  (c)  No such contract shall be deemed to be a contract for public work or purchase within the meaning of the general municipal law.  (d) The corporation and any state agency having the  power  may  enter into   a   contract   for  the  planning,  construction,  operation  and maintenance of sewage treatment works, sewage collecting systems,  solid waste disposal facilities, and for the removal, disposal and remediation of  petroleum storage tanks and the remediation of the sites thereof, as the case may be, for and on behalf of such state agency; the corporation and any such state agency may enter into a contract  pursuant  to  which the  corporation  may  provide for the collection, conveyance, treatment and disposal  of  sewage,  storage,  separating,  treatment,  recycling, reconstituting,    compacting,    composting,   shredding,   converting, utilization, processing, pyrolization or final disposal of  solid  waste by  means of sewage collecting systems, sewage treatment works, or solid waste disposal facilities, as  the  case  may  be,  owned,  constructed, operated  and  maintained  by the corporation. Any such contract entered into by any such state agency and the corporation for  the  purposes  of removal,  disposal  and  remediation  of petroleum storage tanks and the remediation  of  the  sites  thereof,   may   provide   for   ownership, construction,   operation  and  maintenance  of  such  projects  by  the corporation or by any such state agency and any such contract  shall  be subject to the approval of the director of the budget. Any such contract or  contracts shall be upon such terms and conditions as the corporation and such state agency shall determine to be  reasonable,  including  but not  limited  to  the reimbursement of all costs of planning, financing, construction and operation  and  maintenance,  and  any  claims  arising therefrom.  No such contract shall be deemed to be a contract for public work or purchase within the meaning of the state finance law.   2. Loans to municipalities and certain state agencies. The corporation may make loans to any municipality, or any state  agency  authorized  to issue  bonds  or  notes  not constituting a debt or liability within the meaning of section eleven of article seven of  the  state  constitution, for  the  construction  of any sewage treatment works, sewage collecting system or solid waste disposal facility. Any loan by the corporation  to any  such  state agency shall be subject to the approval of the director of  the  budget.  The  corporation  may  accept  as  evidence   of   the  indebtedness  of any such municipality or any state agency authorized to issue bonds or notes not constituting a debt or liability of  the  state within  the  meaning  of  section  eleven  of article seven of the state constitution,  only the municipal bonds or notes of such municipality or bonds or notes of such state agency. Any such loan shall be in an amount or amounts not to exceed the cost of construction  of  any  such  sewage treatment  works,  sewage  collecting  system  or  solid  waste disposal facility required to be financed  by  the  municipality  or  such  state agency. In connection with the making of any such loans, the corporation may  fix and collect such fees and charges, including but not limited to reimbursement of all costs of  financing  by  the  corporation,  as  the corporation shall determine to be reasonable.   3.  Construction,  operation  and  maintenance  of  sewage  collecting systems, sewage treatment works and solid waste disposal facilities. (a) The corporation and a municipality having power  to  construct,  operate and  maintain sewage treatment works, sewage collecting systems or solid waste disposal facilities, by resolution of its governing body may enter into a contract pursuant to which the corporation may  provide  for  the collection, conveyance, treatment and disposal of sewage or the storage, separating,    treatment,    recycling,    reconstituting,   compacting, composting, shredding, converting, utilizing,  processing,  pyrolization or  final disposal of solid wastes by means of sewage treatment works or solid  waste  disposal  facilities,  as  the  case  may  be,  owned  and constructed  by  the  corporation  and  operated  and  maintained by the corporation  or,  for  and  on  behalf  of  the  corporation,  by   such municipality or by any person, as may be approved by the corporation and such  municipality,  and by means of sewage collecting systems owned and constructed by the corporation for and on behalf  of  such  municipality pursuant  to  a contract whereby title to such sewage collecting systems shall vest in such municipality in accordance  with  the  provisions  of paragraph  (c)  of this subdivision, and operated and maintained by such municipality upon such terms and conditions  as  the  corporation  shall determine  to be reasonable. Such contract or contracts shall, except in the case of  a  sewer  corporation  now  existing  in  a  city,  contain provisions  in  accordance with the requirements of paragraph (b) or (c) of this subdivision, and, in addition thereto and consistent  therewith, may  provide  for  the  payment to the corporation by such municipality, annually or otherwise, of such sum or sums of money, computed  at  fixed amounts  or by a formula based on any factors or other matters or in any other manner, as said contract or contracts may provide, and the sum  or sums  so payable may include provision for all or any part or a share of the amounts necessary (i) to pay or provide for the expense of operation and maintenance of  any  such  project  including,  without  limitation, insurance, extensions, betterments and replacements and the principal of and  interest  on  any  bonds  or  notes of the corporation, and (ii) to provide for any deficits resulting from failure to secure  sums  payable to  the corporation by such municipality, any other municipality or from any other cause, and (iii) to maintain such reserves  or  sinking  funds for any of the foregoing as may be required by the terms of any contract of  the  corporation  or  as may be deemed necessary or desirable by the corporation. Such contract or contracts may also contain  provisions  as to  the  financing  and  payment  of  expenses  to  be  incurred  by the corporation and determined by it to be necessary for its purposes  prior to the placing in operation of any such project, and may provide for the payment  by such municipality to the corporation for application to such expenses or indebtedness therefor such sum or sums of money, not in  the aggregate  exceeding  an  amount  stated  or  otherwise  limited in said contract or contracts,  plus  interest  thereon,  as  said  contract  or  contracts  may  provide  and  as the governing body of said municipality shall, by virtue of its authorization of and entry into said contract or contracts,  determine  to  be  necessary  for  the   purposes   of   the corporation.  Except as otherwise provided in this subdivision, any such contract may be made with or without consideration and for  a  specified or  an  unlimited  time  and  on  any  terms and conditions which may be approved by such  municipality  and  which  may  be  agreed  to  by  the corporation  in conformity with its contracts with the holders of any of its bonds or notes, and shall be valid whether or not  an  appropriation with respect thereto is made by such municipality prior to authorization or  execution thereof. The corporation may sell, transfer or dispose of, in any manner it deems desirable any materials, substances or sources or forms of energy derived from any corporate activity, including  but  not limited  to  sludge,  raw  materials,  by-products;  heat, oil, steam or electric energy  in  accordance  with  any  contract  pursuant  to  this paragraph  or  pursuant  to paragraphs (b) and (d) of subdivision one of section twelve hundred eighty-five of this title. Such  municipality  is hereby  authorized  to  do  and  perform  any  and  all  acts  or things necessary, convenient or desirable to carry out and perform  every  such contract  and  to provide for the payment or discharge of any obligation thereunder in the same manner as other obligations of such municipality. Subject to any such contracts with the holders of its  bonds  or  notes, the  corporation is hereby authorized to do and perform any and all acts or things necessary, convenient or desirable to carry  out  and  perform every  such contract and, in accordance with any such contract to waive, modify, suspend or reduce charges which would otherwise be  charged  and collected by the corporation within the municipality.   A  municipality  shall  not  be  liable for any act or omission of the corporation, its  officers,  agents,  servants  or  contractors  in  the performance of any such contract by the corporation.  (b)  Except  as  provided  in  paragraph  (c) of this subdivision, any contract entered into by the corporation  and  any  municipality,  other than  a  sewer  corporation  now  existing  in  a city, pursuant to this subdivision shall provide that the municipality shall  not  acquire  any vested  rights in any such works or facility by reason of such contract, and, in the case of a county, city, or village, that all or any  portion of  the  annual payments, as the case may be, made by such municipality, shall be deemed to be current operating expenses  of  such  municipality within  the  meaning  of  section  ten  of  article  eight  of the state constitution where all or any portion of such payments  are  or  may  be required  to  be raised by tax on real estate in any fiscal year of such municipality.  (c) Any contract entered into by the corporation and any  municipality pursuant to this subdivision may provide that at the termination thereof the title to the works or facility shall vest in the municipality or its successor  in  interest,  if  any,  free  and  clear of any indebtedness contracted by the corporation. Any such contract  entered  into  by  the corporation and any municipality which provides that title shall so vest in  the  municipality  or  its successor in interest, other than a sewer authority now existing in a city, shall  be  subject  to  the  following provisions:  (1)  The  term  of  any  such  contract shall not exceed the period of probable usefulness of the works or  facility  as  provided  in  section 11.00  of  the  local  finance  law, computed from the date of the first indebtedness contracted by the corporation for such works or facility.  (2) The annual  payments  to  be  made  by  the  municipality  to  the corporation  to  enable the corporation to pay the principal of any such indebtedness contracted by it to finance  the  cost  of  such  works  or  facility  shall commence within two years after any such indebtedness or portion thereof shall have been contracted and no  such  annual  payment shall  be  more  than  fifty  percentum  in excess of the smallest prior annual payment for such purpose.  (3)  The  municipality  shall pledge its full faith and credit for the payment of such annual payments described in subparagraph  two  of  this paragraph  (c)  and  also  for  the  payments required to be made to the corporation to enable it to pay the interest on any such indebtedness.  (4) The total amount of any unpaid annual payments in relation to  the principal of any such indebtedness shall be deemed to be indebtedness of the  county,  city, town or village for a capital improvement within the meaning of subparagraph (b) of  subdivision  three  of  paragraph  a  of section  135.00 of the local finance law or indebtedness contracted by a district corporation pursuant to subdivision seven  of  paragraph  a  of such section 135.00, as the case may be.  (5)  The total amount of any unpaid annual payments in relation to the construction  or  reconstruction  of  facilities  for  the   conveyance, treatment  and  disposal of sewage shall be deemed to be indebtedness of the county, city, town or village  within  the  meaning  of  subdivision four-a of section 136.00 of the local finance law.  (6)  The  annual  payments by a county, city or village in relation to such indebtedness and interest shall be deemed to be "indebtedness"  and "interest"  within  the  meaning  of section ten of article eight of the state constitution.  (7) The contract shall not be renegotiated, or amended, in such manner as to constitute a refunding  within  the  meaning  of  section  two  of article eight of the state constitution.  (8)  The  contract  shall  not  be applicable to any works or facility constructed or reconstructed  to  effectuate  the  purposes  of  article eighteen of the state constitution.  (9)  The  municipality  shall  not  be  liable  for  a  default on the obligations of the corporation. If the  expenditure  of  money,  or  the issuance  of obligations, for a project would be subject to the adoption of a proposition pursuant to paragraph b of section 38.00 of  the  local finance   law,  a  contract  between  a  district  corporation  and  the corporation pursuant to the provisions of this paragraph  (c)  shall  be subject  to  approval  at  an  election or meeting in the same manner as provided in such section 38.00.   In the case of a district corporation subject  to  the  provisions  of section  102.00 of the local finance law, the annual payments to be made to the corporation to enable it to pay the principal of any indebtedness contracted by it to finance the cost of the project shall be  deemed  to be indebtedness within the meaning of such section and section 120.00 of such  law and any contract entered into between the district corporation and the corporation pursuant to the provisions  of  this  paragraph  (c) shall be subject to the consent of the city, town or village affected as provided in such section 102.00.   A  contract  pursuant to the provisions of this paragraph (c) shall be deemed to be an issuance of bonds, bond anticipation  notes  or  capital notes  for  the purposes of subdivisions three, four, five, and seven of section 104.10 of the local finance law insofar as  the  contract  shall provide  for  annual payments to the corporation to enable it to pay the principal of indebtedness contracted by it to finance the  cost  of  any project.  (d)  Where a county, city, town or village is prevented from utilizing the provisions of this subdivision, by the provision of any  general  or special law, county, city or village charter which (i) requires that any project   must   be   constructed,   operated   and  maintained  by  the  municipality, (ii) limits the period of time for  which  a  municipality may  contract,  (iii)  requires that the cost shall be paid for by taxes levied for the fiscal year in which the expenditure is to be made,  (iv) requires  that  the cost shall be financed pursuant to the local finance law or (v) only permits any such project to be  constructed  subject  to either  mandatory  or  permissive referendum, such county, city, town or village may adopt a local law superseding the  provisions  of  any  such general  or special law, county, city or village charter. Any such local law shall be subject to mandatory referendum, or referendum on  petition in  the  manner provided in sections twenty-three or twenty-four, as the case may be, of the municipal home rule law, if  the  issuance,  or  the resolution  authorizing  the issuance, of serial bonds having a maturity of more than ten years to finance any such project  would  be  required, under  or  pursuant to the provisions of sections 33.10, 34.00, 35.00 or 36.00 of the local finance law or  any  other  law,  to  be  subject  to mandatory or permissive referendum.   4. The corporation is empowered to lease or rent a project constructed and   owned   by  the  corporation  pursuant  to  any  contract  with  a municipality or state agency as herein provided for, to any  person,  as may be approved by the municipality or state agency. The corporation may make  available  the  use  or  services  of  any  such project, with the approval of such municipality or state agency, to one or  more  persons, or  any  combination  thereof,  upon  such  terms  and conditions as the corporation may determine reasonable.   5. When requested by the governing body of  a  municipality,  or  when requested  by  a person or state agency, the corporation may advise such municipality,  person  or  state  agency  on  matters  relating  to  the planning,  construction,  operation  and maintenance of sewage treatment works, sewage collecting systems, solid waste disposal  facilities,  and any  other  projects  which  the  corporation is authorized to construct pursuant to any provisions of this title, on  matters  relating  to  the identification,  collection, handling, separation and disposal of waste, and on matters relating to the prevention and control of  air  emissions and water discharges subject to regulation pursuant to the environmental conservation law, and pursuant to a contract with a municipality, person or  state  agency,  may  render  technical  assistance and may undertake research, planning and testing with respect to any such matter, and  the corporation may make a reasonable charge to such municipality, person or state  agency  for  the  performance of any such functions authorized by this subdivision.   6. In selecting a location for any projects  constructed  pursuant  to subdivision  one  or  subdivision three of this section, the corporation shall take into consideration the character of the area of any  proposed location and the zoning regulations, if any, applicable to such area.   7.  When  requested  by  the  governing body of a municipality or by a state agency,  any  contract  pursuant  to  either  subdivision  one  or subdivision  three  of this section, except a contract pursuant to which the municipality shall not acquire a vested interest in the project, may provide as part of a project and upon the site of such project, for  the construction and financing, pursuant to the provisions of this title, by the  authority  of  such other facilities, betterments, improvements and appurtenances for which such municipality or state agency has the  power to  provide.  Such  construction  and  financing shall be permitted when necessary to develop or restore such site to a beneficial  municipal  or public  use,  and  in accordance with the plans or design of the project prepared and approved by such municipality or state agency, or as may be prepared by the corporation on behalf  of  such  municipality  or  state agency.    8.  The  corporation  is empowered to enter into one or more contracts with any person designated by the corporation to be a responsible  agent for  the  planning,  design,  construction  and operation of one or more solid waste processing pilot projects.  The  corporation  shall  require such  person  to  supply  it  with  such plans, estimates of costs, time schedules, designs, and other data as the corporation shall determine to be reasonable to enable  proper  identification  of  costs.  Such  pilot projects  are  to  determine  which  methods  of recycling solid wastes, including, but not limited to shredding,  compression,  high-temperature incineration,  pyrolization,  separation or any other new technology for resource recovery in  solid  waste  management  are  most  feasible  for large-scale  implementation  by the corporation and by municipalities in this state, having due regard for the resources  to  be  recovered,  net costs,  amount  of  land required, and environmental considerations. The corporation shall issue annual  reports  as  to  the  results  of  these projects,   containing   recommendations  not  inconsistent  with  those findings, and shall make copies of the report, findings  and  supporting data  available  to any municipality in this state. For this purpose the corporation is authorized to apply to the United  States  Public  Health Service,  Environmental  Protection  Agency, United States Department of Agriculture, or any other  appropriate  authority  for  grants  of  such federal funds as may be available toward the financing of or contracting for such projects.   The   corporation   shall  transmit  a  copy  of  its  report  to  the commissioner  of  environmental  conservation,  who  shall  hold  public hearings  on  its  recommendations,  pursuant  to  section 3-0301 of the environmental conservation law, at which  hearings  testimony  shall  be taken  from  all  interested  parties. Following the termination of said hearings,  the  department  of  environmental  conservation   may   make additional  findings,  if  any,  and  shall have the power to promulgate rules and regulations and/or propose legislation,  consistent  with  its findings, to implement the report.