Environmental Conservation
The Executive Budget proposes $898.5 million in All Funds spending for the Department of Environmental Conservation (DEC) in SFY 2015-16, a $11.4 million increase from projected spending levels for SFY 2014-15. The proposed Budget includes a Full-Time Equivalent (FTE) workforce level of 2,946 FTE positions for the DEC in SFY 2015-16, an increase of 36 FTE positions over the estimated workforce level in SFY 2014-15. This includes the addition of eight positions related to the transfer of the Oil Spill Fund Program from the Office of the State Comptroller.
The Executive proposes to reform the State Brownfield Cleanup Program (BCP) and extend for an additional ten years the availability of tax credits due to expire at the end of 2015.16 The Budget would limit tax credits based on site redevelopment to properties in
economically distressed areas, properties at which the cost of cleanup exceeds the value of the property, or properties that are being redeveloped for affordable housing purposes.17
Proposed changes to the definition of “brownfield” would restrict eligible sites to those at which the concentration of contaminants in environmental media exceed State environmental or health-based standards.
The proposal would renew expired program eligibility for sites listed on the State Superfund Registry at which the applicant may be considered a volunteer under the BCP statute, but limit these sites to those where no viable responsible party has been identified by the DEC.18 The Executive proposal creates a new “BCP—EZ” program within the BCP. The
DEC is directed to develop regulations that would exempt applicants from procedural requirements of the BCP. Eligibility for this new program is limited to sites that the DEC determines not to pose a significant threat to public health and the environment. Sites admitted to the BCP—EZ program would not be eligible to receive tax credits.
The Executive proposal directs the Commissioner of the Department of Taxation and Finance to publish reports on tax credits claimed under the BCP in calendar years 2005, 2006 and 2007. The proposal exempts applications for Brownfield Opportunity Area Designation from the State Environmental Quality Review Act.
16 Sites that have been admitted to the program before December 31, 2022 and that receive a certificate of completion
before December 31, 2025 would be eligible to receive BCP tax credits. Sites admitted after December 31, 2022 would not be eligible for tax credits.
17 If the property is located in an area designated as a Brownfield Opportunity Area (BOA), to be eligible for site
redevelopment tax credits, the applicant must further demonstrate that the project is in conformance with the BOA plan. In addition, properties where contamination emanates from another property and properties that do not require remediation to support the proposed site use would be ineligible for these tax credits.
18 State Superfund sites became ineligible to participate in the BCP after July 1, 2005.
The Budget proposes to appropriate an additional $100 million in funding for the State Superfund program. This appropriation includes funding for the Environmental Restoration Program.
The Budget proposes appropriations for the Environmental Protection Fund (EPF) of $172 million in SFY 2015-16, an increase of $10 million over appropriations in SFY 2014-15. A transfer in revenue of $18 million from the General Fund to the EPF is also proposed. This $18 million transfer consists of $5 million in revenues from pesticide registration fees and $13 million in revenues derived from the Regional Greenhouse Gas Initiative (RGGI). The Budget proposes to finance $25 million in EPF projects through the issuance of bonds, and to transfer $25 million in EPF revenues to the General Fund for budget relief. This “bonded sweep” incurs additional long-term debt service costs for New Yorkers.
The Budget proposes to expand the purposes of the Environmental Protection and Spill Compensation Fund (Oil Spill Fund). New expenditures would include spill response preparation, and could include: equipment for spill response, prevention, personal safety equipment and training; petroleum spill response drills and exercises; identification, mapping and analysis of populations, environmentally sensitive areas and resources at risk from petroleum spills; and development of plans to protect these populations and resources in the case of spills.
The Executive’s proposal shifts administration of the Oil Spill Fund from the Office of the State Comptroller to the DEC, resulting in a loss of 10 Full Time Equivalent (FTE) positions in the Office of the State Comptroller related to Fund oversight and administration. Executive Budget documents indicate that DEC will receive an increase of 8 new FTE positions related to oil spill planning, training and response. In addition, 6 new FTE positions related to this purpose would be created in the Department of Homeland Security. The Budget provides additional funding for the Oil Spill Fund through an increase in the license fee charged to petroleum storage facilities from 1 cent per barrel to 9.5 cents per barrel. The surcharge on each barrel of petroleum transferred and used in the State is maintained at 4.25 cents. The Executive proposal increases the surcharge for petroleum products stored, but then transferred out of State from 1.5 cents per barrel to 13.75 cents per barrel. Of the revenue collected through this charge, 12.25 cents per barrel is to be transferred to the Oil Spill Fund. The remaining 1.5 cents per barrel is transferred to the Hazardous Waste Remedial Fund.
The Executive’s proposal would increase fees to provide additional revenues for the Fund, but would also expand permissible expenditures to encompass planning, response and training activities for State and local spill responders. By their nature, these expenditures would not be recoverable from any spiller. This new funding is also not proposed to be segregated in a dedicated account within the Fund; therefore, all monies in the Fund are potentially available to use for these new purposes. Under the current structure for Fund administration, the Office of the State Comptroller would provide independent oversight of these expenditures in order to ensure that the long-term financial viability of the Fund is not put at risk. The Executive’s proposal would eliminate this oversight.
For calendar year 2015, the Executive Budget establishes a base fee of $2,500 for all sources of air emissions subject to regulation under the federal Clean Air Act. In addition, per-ton fees would be increased on the first 7,000 tons of each regulated air pollutant emitted as follows:
• For emitters of less than 1,000 tons, from $45 to $60. • For emitters of 1,000 to 1,999 tons, from $50 to $70. • For emitters of 2,000 to 4,999 tons, from $55 to $80. • For emitters of 5,000 or more tons, from $65 to $90.
Sources of air pollution not subject to fees under the federal Clean Air Act, but subject to regulation under State clean air programs, would be subject to the following fee changes in calendar year 2015:
• The fee for stationary sources subject to a minor facility registration would decrease from $2,000 to $250.
• The fee for all other facilities requiring an operating approval from the DEC would be set at $2,500.
• Facilities regulated by municipalities under a delegation agreement with the DEC would not be subject to the changes in fee structure.19
In calendar year 2015, fees would also increase for all discharges of water pollution subject to the State Pollutant Discharge Elimination System (SPDES), except for discharges of ballast water and discharges from concentrated animal feeding operations. In subsequent calendar years, fees for all discharges requiring a SPDES permit would be indexed to increases in the Consumer Price Index.
In total, the fee increases are expected to raise $8 million annually. The Budget also proposes to eliminate a $10 fee for water well driller certifications. In SFY 2013-14, this fee produced $4,600 in revenue.
The Budget proposes to appropriate $40 million in New York Works capital funding for DEC programs to repair State infrastructure (including dams and fish hatcheries), restore wetlands and improve recreational access to State lands.
The Budget proposes to redirect up to $1.5 million annually in revenues resulting from the sale of lifetime hunting and fishing licenses from the Fish and Wildlife Trust to a newly established Habitat Conservation and Access Account established in the DEC Miscellaneous Capital Fund. This account would also receive the revenues of sales of voluntary habitat stamps.
Parks
The Executive Budget proposes $317.3 million in All Funds spending in SFY 2015-16 for State Parks, a $25.0 million increase from projected spending for SFY 2014-15. The Budget proposes a full time equivalent workforce of 1,746 positions for State Parks, an
19 In subsequent calendars years, fees for both federal and State regulatory programs would automatically
increase by the percentage that the consumer price index (Index) exceeded the Index for the prior year.
increase of 12 positions over the estimated level in SFY 2014-15. The Budget appropriates $112.5 million in New York Works capital funding for infrastructure improvements at State Parks. Of this funding, $2.5 million would support infrastructure improvements at Olympic Regional Development Authority facilities.