2023 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.