S 824: Relates to the climate change adaptation cost recovery program and requirements for climate change adaptive infrastructure projects; relates to the use of funds from the climate change adaptation fund for certain projects; relates to the disclosure of certain data from returns of petroleum or fossil fuel businesses; relates to expenditure of funds from the climate change adaptation fund; repeals certain provisions; relates to severability and legislative findings.

  
  STATE OF NEW YORK ________________________________________________________________________ 824 2025-2026 Regular Sessions  IN SENATE (Prefiled) January 8, 2025 ___________ Introduced by Sen. KRUEGER -- read twice and ordered printed, and when printed to be committed to the Committee on Rules AN ACT to amend the environmental conservation law, in relation to the climate change adaptation cost recovery program and requirements for climate change adaptive infrastructure projects; to amend the labor law, in relation to the use of funds from the climate change adapta- tion fund for certain climate risk-related and energy transition projects; to amend the tax law, in relation to the disclosure of certain data from returns of petroleum or fossil fuel businesses to the department of environmental conservation or the New York state energy research and development authority; to amend the state finance law, in relation to expenditure of funds from the climate change adap- tation fund; to repeal section 76-0105 of the environmental conserva- tion law, relating to labor and job standards and worker protection; and to amend a chapter of the laws of 2024 amending the environmental conservation law relating to establishing the climate change adapta- tion cost recovery program, and amending the state finance law relat- ing to establishing the climate change adaptation fund, as proposed in legislative bills numbers S. 2129-B and A. 3351-B, in relation to legislative findings and severability The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subdivisions 1, 5, paragraph c of subdivision 6 and subdi- 2 visions 7 and 8 of section 2 of a chapter of the laws of 2024 amending 3 the environmental conservation law relating to establishing the climate 4 change adaptation cost recovery program; and amending the state finance 5 law relating to establishing the climate change adaptation fund, as 6 proposed in legislative bills numbers S. 2129-B and A. 3351-B, are 7 amended to read as follows: EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD02898-01-5 
 S. 824 2 1 1. Climate change, resulting primarily from the combustion of fossil 2 fuels, is an immediate, grave threat to the state's communities, envi- 3 ronment, and economy. In addition to mitigating the further buildup of 4 greenhouse gases, the state must take action to adapt to certain conse- 5 quences of climate change that are irreversible, including rising sea 6 levels, increasing temperatures, extreme weather events, flooding, heat 7 waves, [toxic] harmful algal blooms and other climate-change-driven 8 threats. Maintaining New York's quality of life into the future, 9 particularly for young people, who will experience greater impacts from 10 climate change over their lifetimes, will be one of the state's greatest 11 challenges over the next three decades. Meeting that challenge will 12 require a shared commitment of purpose, huge investments in new or 13 upgraded infrastructure, and new revenue sources to pay for those 14 investments. 15 5. The obligation to pay under the program is based on the fossil fuel 16 companies' historic contribution to the buildup of greenhouse gases that 17 is largely responsible for climate change. The program operates under a 18 standard of strict liability; companies are required to pay into the 19 fund based on the amount of historic greenhouse gas emissions attribut- 20 able to greenhouse gas-producing fossil fuels which they are responsible 21 for extracting and refining, because the use of [their] products derived 22 from such fossil fuels caused [the] such pollution. No finding of wrong- 23 doing is required. 24 c. The total assessment [rate] of [$3] $75 billion dollars [per year] 25 represents a small percentage of the extraordinary cost to New York 26 State for repairing from and preparing for climate change-driven extreme 27 events over the next 25 years, and is designed to have a meaningful 28 impact on the burden borne by New York State taxpayers for climate adap- 29 tation while being sufficiently limited so as to not impose a punitive 30 negative impact on an industry in which just the three largest domestic 31 oil and gas producers made a combined $85.6 billion in profits in 2023. 32 Recent science has determined that the largest one hundred fossil fuel 33 producing companies are responsible for more than 70% of global green- 34 house gas emissions since 1988, and therefore bear a much higher share 35 of responsibility for climate damage to New York State than is repres- 36 ented by the $75 billion being assessed them. 37 7. A covered period of [2000-2018] 2000-2024 has been selected. Over 38 70 percent of the total increase in greenhouse gas concentrations since 39 the Industrial Revolution has occurred since 1950, with a marked 40 increase in the rate of emissions after the year 2000. By 2000 the 41 science of climate change was well established, and no reasonable corpo- 42 rate actor could have failed to anticipate regulatory action to address 43 its impacts. In addition, the data necessary to attribute proportional 44 responsibility is very robust in the covered period. 45 8. This act is not intended to intrude on the authority of the feder- 46 al government in areas where it has preempted the right of the states to 47 legislate. This [act] program is remedial in nature, seeking compen- 48 sation for damages resulting from the past actions of polluters. 49 § 2. Section 76-0105 of the environmental conservation law, as added 50 by a chapter of the laws of 2024 amending the environmental conservation 51 law relating to establishing the climate change adaptation cost recovery 52 program; and amending the state finance law relating to establishing the 53 climate change adaptation fund, as proposed in legislative bills numbers 54 S.2129-B and A. 3351-B, is REPEALED. 55 § 3. Sections 76-0101 and 76-0103 of the environmental conservation 56 law, as added by a chapter of the laws of 2024 amending the environ- 
 S. 824 3 1 mental conservation law relating to establishing the climate change 2 adaptation cost recovery program; and amending the state finance law 3 relating to establishing the climate change adaptation fund, as proposed 4 in legislative bills numbers S. 2129-B and A. 3351-B, are amended and a 5 new section 76-0105 is added to read as follows: 6 § 76-0101. Definitions. 7 For the purposes of this article the following terms shall have the 8 following meanings: 9 1. "Affiliate" means, with respect to any specified entity, an entity 10 that directly, or indirectly through one or more intermediaries, 11 controls or is controlled by, or is under common control with, the enti- 12 ty specified. 13 2. "Applicable payment date" means [September thirtieth] December 14 thirty-first of the [second] fourth calendar year following the year in 15 which this article is enacted into law. 16 [2.] 3. "Climate change adaptive infrastructure project" means an 17 infrastructure project for purposes of climate change adaptation that: 18 a. includes but is not limited to projects designed to avoid, moder- 19 ate, repair, or adapt to negative impacts caused by climate change, and 20 to assist communities, households, and businesses in preparing for 21 future climate change-driven disruptions. Such [projects] project types 22 include but are not limited to restoring coastal wetlands and developing 23 other nature-based solutions and coastal protections; upgrading storm 24 water drainage systems; making defensive upgrades to roads, bridges, 25 subways, and transit systems; preparing for and recovering from hurri- 26 canes and other extreme weather events; undertaking preventive health 27 care programs and providing medical care to treat illness or injury 28 caused by the effects of climate change; relocating, elevating, or 29 retrofitting [sewage] wastewater treatment plants vulnerable to flood- 30 ing; installing energy efficient cooling systems and other weatheriza- 31 tion and energy efficiency upgrades and retrofits in public and private 32 buildings, including schools and public housing; upgrading parts of the 33 electrical grid to increase stability and resilience, including support- 34 ing the creation of self-sufficient clean energy microgrids; addressing 35 urban heat island effects through green spaces, urban forestry, and 36 other interventions; and responding to [toxic algae] harmful algal 37 blooms, loss of agricultural topsoil, and other climate-driven ecosystem 38 threats to forests, farms, fisheries, and food systems; and 39 b. is guided by the project criteria identified in the statewide 40 climate change adaptation and resilience plan adopted pursuant to subdi- 41 vision six of section 76-0103 of this article. 42 [3. "Coal" shall have the same definition as in section 1-103 of the 43 energy law.] 44 4. "Control" (including the terms controlling, controlled by and 45 under common control with) means the possession, direct or indirect, of 46 the power to direct or cause the direction of the management and poli- 47 cies of an entity, whether through the ownership of voting securities, 48 by contract, or otherwise. 49 5. "Controlled group" means two or more entities [treated as a single 50 employer under section 52(a) or (b) or section 414(m) or (o) of the 51 Internal Revenue Code. In applying subsections (a) and (b) of section 52 52, section 1563 of the Internal Revenue Code shall be applied without 53 regard to subsection (b)(2)(C). For purposes of this article, entities 54 in a controlled group are treated as a single entity for purposes of 55 meeting the definition of responsible party and are jointly and 
 S. 824 4 1 severally liable for payment of any cost recovery demand owed by any 2 entity in the controlled group] that are affiliates of each other. 3 [5.] 6. "Cost recovery amount" means seventy-five billion dollars. 4 7. "Cost recovery demand" means [a charge asserted against] the 5 portion of the cost recovery amount determined by the department pursu- 6 ant to the program to be owed by a responsible party [for cost recovery 7 payments under the program] for payment to the fund. 8 [6.] 8. "Covered greenhouse gas emissions" means, with respect to any 9 entity, the total quantity of greenhouse [gases released into the atmos- 10 phere during the covered period] gas emissions, expressed in metric tons 11 of carbon dioxide equivalent, as defined in section 75-0101 of this 12 chapter, [including but not limited to releases of greenhouse gases 13 resulting from the extraction, storage, production, refinement, trans- 14 port, manufacture, distribution, sale, and use of fossil fuels or petro- 15 leum products extracted, produced, refined, or sold by such entity] 16 attributable to the total amount of fossil fuels extracted by that enti- 17 ty during the covered period, as well as the total amount of crude oil 18 refined by that entity during the covered period. For the purposes of 19 this article, covered greenhouse gas emissions include those emissions 20 attributable to all fossil fuel extraction and refining worldwide by 21 such entity and are not limited to such emissions within the state. 22 [7.] 9. "Covered period" means the period that began January first, 23 two thousand and ended on December thirty-first, two thousand [eighteen] 24 twenty-four. 25 [8.] 10. "Crude oil" means oil or petroleum of any kind and in any 26 form, including bitumen, oil sands, heavy oil, conventional and uncon- 27 ventional oil, shale oil, natural gas liquids, condensates, and related 28 fossil fuels. 29 [9.] 11. "Entity" means any individual, trustee, agent, partnership, 30 association, corporation, company, municipality, political subdivision, 31 or other legal organization, [including a foreign nation,] that holds or 32 held an ownership interest in a fossil fuel business during the covered 33 period. For purposes of this article, entities in a controlled group are 34 treated as a single entity for the purposes of meeting the definition of 35 responsible party and shall be jointly and severally liable for payment 36 of any cost recovery demand owed by any entity in the controlled group. 37 [10.] 12. "Fossil fuel" shall have the same definition as in section 38 1-103 of the energy law. 39 [11.] 13. "Fossil fuel business" means a business engaging in the 40 extraction of fossil fuels or the refining of petroleum products. 41 [12. "Fuel gases" shall have the same definition as in section 1-103 42 of the energy law. 43 13.] 14. "Fund" means the climate change adaptation fund established 44 pursuant to section ninety-seven-m of the state finance law. 45 [14.] 15. "Greenhouse gas" shall have the same definition as in 46 section 75-0101 of this chapter. 47 [15.] 16. "Nature-based solutions" shall mean projects that utilize or 48 mimic nature or natural processes and functions and that may also offer 49 environmental, economic, and social benefits, while increasing resili- 50 ence. Nature-based solutions include both green and natural infrastruc- 51 ture. 52 [16.] 17. "Notice of cost recovery demand" means the written communi- 53 cation informing an entity that they are a responsible party and of the 54 amount of the cost recovery demand payable to the fund. 55 [17.] 18. "Petroleum products" shall have the same definition as in 56 section 1-103 of the energy law. 
 S. 824 5 1 [18.] 19. "Program" means the climate change adaptation cost recovery 2 program established under section 76-0103 of this article. 3 [19.] 20. "Qualifying expenditure" means [an authorized] a payment 4 from the fund in support of a climate change adaptive infrastructure 5 project, including its operation and maintenance, as defined by the 6 department. 7 [20.] 21. "Responsible party" means any entity (or a successor in 8 interest to such entity described herein), which, during any part of the 9 covered period, was engaged in the trade or business of extracting 10 fossil fuel or refining crude oil and is determined by the department to 11 be responsible for more than one billion tons of covered greenhouse gas 12 emissions. The term responsible party shall not include any person who 13 lacks sufficient [connection] contacts with the state to satisfy the 14 [nexus requirements] due process clause of the United States Constitu- 15 tion. 16 § 76-0103. The climate change adaptation cost recovery program. 17 1. There is hereby established a climate change adaptation cost recov- 18 ery program to be administered by the department. 19 2. The purposes of the program shall be the following: 20 a. To secure compensatory payments from responsible parties based on a 21 standard of strict liability to provide a source of revenue for climate 22 change adaptive infrastructure projects within the state. Such payments 23 in aggregate shall total the cost recovery amount and shall be due and 24 payable on the applicable payment date. 25 b. To determine proportional liability of responsible parties for the 26 cost recovery amount pursuant to subdivision three of this section; 27 c. To impose cost recovery demands on responsible parties and issue 28 notices of cost recovery [demands] demand; 29 d. To accept and collect payment from responsible parties; 30 e. To identify climate change adaptive infrastructure projects; 31 f. To disperse funds to climate change adaptive infrastructure 32 projects; and 33 g. To allocate funds in such a way as to achieve a goal that at least 34 forty percent of the qualified expenditures from the program, but not 35 less than thirty-five percent of such expenditures, shall go to climate 36 change adaptive infrastructure projects that benefit disadvantaged 37 communities as defined in section 75-0101 of this chapter. 38 3. a. A responsible party shall be strictly liable, without regard to 39 fault, for a share of the cost recovery amount, which shall be used for 40 the costs of climate change adaptive infrastructure projects, including 41 their operation and maintenance, supported by the fund. 42 b. With respect to each responsible party, the cost recovery demand 43 shall be equal to an amount that bears the same ratio to [seventy-five 44 billion dollars] the cost recovery amount as the responsible party's 45 applicable share of covered greenhouse gas emissions bears to the aggre- 46 gate applicable shares of covered greenhouse gas emissions of all 47 responsible parties. 48 c. The applicable share of covered greenhouse gas emissions taken into 49 account under this section for any responsible party shall be the amount 50 by which the covered greenhouse gas emissions attributable to such 51 responsible party exceeds one billion metric tons. 52 d. [Where an entity owns a minority interest in another entity of ten 53 percent or more, the calculation of the entity's applicable share of 54 greenhouse gas emissions taken into account under this section shall 55 include the applicable share of greenhouse gas emissions taken into 56 account under this section by the entity in which the responsible party 
 S. 824 6 1 holds a minority interest, multiplied by the percentage of the minority 2 interest held. 3 e.] In determining the amount of greenhouse gas emissions attributable 4 to any entity, [an amount equivalent to nine hundred forty-two and one- 5 half metric tons of carbon dioxide equivalent shall be treated as 6 released for every million pounds of coal attributable to such entity; 7 an amount equivalent to four hundred thirty-two thousand one hundred 8 eighty metric tons of carbon dioxide equivalent shall be treated as 9 released for every million barrels of crude oil attributable to such 10 entity; and an amount equivalent to fifty-three thousand four hundred 11 forty metric tons of carbon dioxide equivalent shall be treated as 12 released for every million cubic feet of fuel gases attributable to such 13 entity] the department may: i. require an entity to provide information 14 to the department related to past practices, production, extraction, 15 refining, emissions, or other historical information about such entity 16 necessary or appropriate to enable the department to determine whether 17 such entity is a responsible party and, if so, the amount of such 18 responsible party's covered greenhouse gas emissions; ii. apply consist- 19 ent emissions factors, consistent with the climate leadership and commu- 20 nity protection act pursuant to chapter one hundred six of the laws of 21 two thousand nineteen, to convert extraction and refining data into 22 greenhouse gas emissions; and iii. utilize information received from the 23 department of taxation and finance pursuant to subdivision (a) of 24 section three hundred fourteen of the tax law. 25 e. i. The department shall issue notices of cost recovery demand to 26 all responsible parties at the times set forth in paragraph a of subdi- 27 vision four of this section. Payment of a cost recovery demand shall be 28 made in full on the applicable payment date provided that, notwithstand- 29 ing paragraph a of subdivision two of this section, the department may 30 provide that a responsible party may elect to pay an amount no greater 31 than ninety-two percent of the amount of the cost recovery demand after 32 the applicable payment date. Any such payments permitted to be made 33 after the applicable payment date shall be made within twenty-four years 34 of the applicable payment date, shall be no less frequent than annual 35 beginning in the year following the applicable payment date, and shall 36 not increase over time. 37 ii. Any responsible party who fails to make a payment required pursu- 38 ant to this subdivision shall pay a penalty of fifty per centum of the 39 unpaid payment amount, plus interest on the unpaid payment amount 40 computed in accordance with section 6621(a)(2) of the United States 41 internal revenue code of 1986 (Public Law 99-514, 26 U.S.C. section 1 et 42 seq.) from the date the payment was required to be paid. 43 f. [The commissioner may adjust the cost recovery demand amount of a 44 responsible party refining petroleum products (or who is a successor in 45 interest to such an entity) if such responsible party establishes to the 46 satisfaction of the commissioner that a portion of the cost recovery 47 demand amount was attributable to the refining of crude oil extracted by 48 another responsible party (or who is a successor in interest to such an 49 entity) that accounted for such crude oil in determining its cost recov- 50 ery demand amount. 51 g. Payment of a cost recovery demand shall be made in full on the 52 applicable payment date unless a responsible party elects to pay in 53 installments pursuant to paragraph h of this subdivision. 54 h. A responsible party may elect to pay the cost recovery demand 55 amount in twenty-four annual installments, eight percent of the total 56 due in the first installment and four percent of the total due in each 
 S. 824 7 1 of the following twenty-three installments. If an election is made under 2 this paragraph, the first installment shall be paid on the applicable 3 payment date and each subsequent installment shall be paid on the same 4 date as the applicable payment date in each succeeding year. 5 i.] If there is any addition to the original amount of the final cost 6 recovery demand as of the applicable payment date for failure to timely 7 pay any [installment] amount required to be paid under this subdivision, 8 a liquidation or sale of substantially all the assets of the responsible 9 party (including in a proceeding under U.S. Code: Title 11 or similar 10 case), a cessation of business by the responsible party, or any similar 11 circumstance, then the unpaid balance of all [remaining installments] 12 unpaid amounts shall be due on the date of such event (or in the case of 13 a proceeding under U.S. Code: Title 11 or similar case, on the day 14 before the petition is filed). The preceding sentence shall not apply to 15 the sale of substantially all of the assets of a responsible party to a 16 buyer if such buyer enters into an agreement with the department under 17 which such buyer is liable for [the remaining installments] all unpaid 18 amounts due [under this subdivision] in the same manner as if such buyer 19 were the responsible party. 20 4. a. Within [one year] thirty months of the effective date of this 21 article, the department shall promulgate such regulations as are neces- 22 sary or appropriate to carry out this article, including but not limited 23 to: 24 i. provisions for the department to require an entity to provide 25 information to the department related to past practices, production, 26 extraction, refining, emissions, or other historical information about 27 such entity necessary or appropriate to enable the department to deter- 28 mine whether such entity is a responsible party and, if so, the amount 29 of such responsible party's covered greenhouse gas emissions; 30 ii. adopting uniform and consistent methodologies using the best 31 available [science] information, such as publicly available databases of 32 historical production data, to determine responsible parties and their 33 applicable share of covered greenhouse gas emissions consistent with the 34 provisions of this article; 35 [ii.] iii. registering entities that are responsible parties under the 36 program; 37 [iii.] iv. issuing notices of cost recovery demand [to responsible 38 parties informing them of the cost recovery demand amount; how and where 39 cost recovery demands can be paid; the potential consequences of nonpay- 40 ment and late payment; and information regarding their rights to contest 41 an assessment], no later than June thirtieth of the fourth calendar year 42 following the effective date of this article, for each responsible 43 party's cost recovery demand; 44 [iv.] v. establishing a process such that: 45 (1) a responsible party may file a request for reconsideration of its 46 cost recovery demand with the department within sixty days following 47 service of the notice of cost recovery demand if within the United 48 States, and within ninety days following such service outside the United 49 States, and in doing so shall exhaust administrative remedies; 50 (2) a request for reconsideration shall state the grounds for the 51 request and include supporting documentation, which may include but is 52 not limited to documentation of the party's covered greenhouse gas emis- 53 sions and the party's contacts with the state; 54 (3) the department shall consider whether any such requests for recon- 55 sideration, including whether a responsible party refining petroleum 56 products, or who is a successor in interest to such an entity, estab- 
 S. 824 8 1 lishes to the satisfaction of the department that a portion of the cost 2 recovery demand amount was attributable to the refining of crude oil 3 extracted by a responsible party, or who is a successor in interest to 4 such an entity, that was accounted for in determining the cost recovery 5 demand amount of such responsible party, and whether notices of cost 6 recovery demand should be updated, and shall issue updated notices of 7 cost recovery demand, if applicable, which shall include a statement of 8 the grounds of the department's determination, within sixty days follow- 9 ing the expiration of all periods for submitting a request for reconsid- 10 eration under item one of this subparagraph; 11 (4) if notices of cost recovery demand issued pursuant to item three 12 of this subparagraph result in a new responsible party receiving a 13 notice of cost recovery demand that was not issued a notice of cost 14 recovery demand by the date required by subparagraph iv of this para- 15 graph, then, in the same manner as set forth in items one, two and three 16 of this subparagraph, such responsible party shall have sixty days from 17 service within the United States, and ninety days from service outside 18 the United States, to file a request for reconsideration, which filing 19 shall exhaust such responsible party's administrative remedies, and the 20 department shall consider such request for reconsideration and issue 21 updated notices of cost recovery demand, if applicable, in the manner 22 contemplated by item three of this subparagraph; 23 (5) if any updating of notices of cost recovery demand pursuant to 24 such processes for reconsideration results in a new responsible party 25 that was not previously issued a cost recovery demand, such new respon- 26 sible party shall also be given the opportunity to file a request for 27 reconsideration in the same manner as set forth in item four of this 28 subparagraph, and such process shall continue until no new responsible 29 party results from issuance of notices of cost recovery demand; and 30 (6) if the processes in this subparagraph result in issuances of 31 notices of cost recovery demand after the applicable payment date, then 32 the applicable payment date shall be the date which is thirty days after 33 the final issuance of notices of cost recovery demand; and 34 vi. accepting payments from, pursuing collection efforts against, and 35 negotiating settlements with responsible parties[; and 36 v. adopting procedures for identifying and selecting climate change 37 adaptive infrastructure projects eligible to receive qualifying expendi- 38 tures, including legislative budget appropriations, issuance of requests 39 for proposals from localities and not-for-profit and community organiza- 40 tions, grants to private individuals, or other methods as determined by 41 the department, and for dispersing moneys from the fund for qualifying 42 expenditures. When considering projects intended to stabilize tidal 43 shorelines, the department shall encourage the use of nature-based 44 solutions. Total qualifying expenditures shall be allocated in such a 45 way as to achieve a goal that at least forty percent of the qualified 46 expenditures from the program, but not less than thirty-five percent of 47 such expenditures, shall go to climate change adaptive infrastructure 48 projects that benefit disadvantaged communities as defined in section 49 75-0101 of this chapter]. 50 b. The department shall hold at least two public hearings, one in-per- 51 son and one virtual, on proposed regulations, with a minimum of thirty 52 days' public notice in compliance with the provisions of article seven 53 of the public officers law. 54 5. The department shall develop procedures to make publicly avail- 55 able, by posting on its website, all data related to fossil fuel 
 S. 824 9 1 extraction and refining by entities which the department obtains pursu- 2 ant to the program, to the maximum extent practicable. 3 6. Within [two years] eighteen months of the [effective date of this 4 article] promulgation of the final regulations pursuant to subdivision 5 four of this section, the department shall complete a statewide climate 6 change adaptation [master] and resilience plan, which shall be publicly 7 available, including at a minimum on the department's website, and 8 updated no less than every three years following the procedures of this 9 subdivision, for the purpose of guiding the dispersal of funds, pursuant 10 to section ninety-seven-m of the state finance law, to all regions of 11 the state in a timely, efficient, and equitable manner [to all regions 12 of the state] in accordance with the provisions of this chapter. In 13 completing such plan, the department shall: 14 a. collaborate with the department of state, [empire state develop- 15 ment] homes and community renewal, the department of agriculture and 16 markets, the New York state energy research and development authority, 17 the department of public service, the department of transportation, the 18 department of health, the division of budget and the [New York independ- 19 ent systems operator] division of homeland security and emergency 20 services; 21 b. assess the adaptation needs [and vulnerabilities] of various areas 22 vital to the state's economy, normal functioning, and the health and 23 well-being of New Yorkers, including but not limited to: agriculture, 24 biodiversity, ecosystem services, education, finance, healthcare, manu- 25 facturing, housing and [real estate] land use, retail, tourism (includ- 26 ing state and municipal parks), transportation, and municipal and local 27 government. 28 c. identify major potential, proposed, and ongoing climate change 29 adaptive infrastructure projects throughout the state; 30 d. identify opportunities for alignment with existing federal, state, 31 and local funding streams; 32 e. identify potential municipal, not-for-profit, and community organ- 33 ization grant programs; 34 f. include in such plan project criteria, project types and recommen- 35 dations for identifying and selecting climate change adaptive infras- 36 tructure projects eligible to receive qualifying expenditures. When 37 considering projects intended to stabilize tidal shorelines, the depart- 38 ment shall encourage the use of nature-based solutions; 39 g. consult with stakeholders, including local governments, businesses, 40 environmental advocates, the federally designated bulk system operator, 41 relevant subject area experts, and representatives of disadvantaged 42 communities; and 43 [f.] h. provide opportunities for public engagement in all regions of 44 the state, including by holding at least two public hearings, one 45 in-person and one virtual, with meaningful opportunities for partic- 46 ipation and public comment from all segments of the population, includ- 47 ing persons living in disadvantaged communities as identified pursuant 48 to section 75-0111 of this chapter, a minimum of sixty days' public 49 notice in compliance with the provisions of article seven of the public 50 officers law, on a draft of the plan, a summary and analysis of the 51 public comments and a description of any changes made to the plan based 52 on the public comments received. 53 [6.] 7. Total qualifying expenditures shall be allocated in such a 54 way as to achieve a goal that at least forty percent of the qualified 55 expenditures from the program, but not less than thirty-five percent of 56 such expenditures, shall go to climate change adaptive infrastructure 
 S. 824 10 1 projects that benefit disadvantaged communities as defined in section 2 75-0101 of this chapter. 3 8. The department[, the department of taxation and finance,] and the 4 attorney general are hereby authorized to implement and enforce the 5 provisions of this article. 6 [7. The department or the department of taxation and finance shall 7 provide an opportunity to be heard to any responsible parties that seek 8 to contest a cost recovery demand. Determinations made in favor of a 9 petitioner after such hearing shall be final and conclusive. A determi- 10 nation in favor of the state may be appealed under article seventy-eight 11 of the civil practice law and rules. 12 8.] 9. Moneys received from cost recovery demands shall be deposited 13 in the climate change adaptation fund established pursuant to section 14 ninety-seven-m of the state finance law. 15 [9.] 10. a. The department shall conduct an [independent] evaluation 16 of the climate change adaptation cost recovery program. The purpose of 17 this evaluation is to determine the effectiveness of the program in 18 achieving its purposes as defined in subdivision two of this section. 19 Such evaluation shall include, at minimum: 20 i. a list of all responsible parties and their respective cost recov- 21 ery demands, as well as any changes to an entity's status as a responsi- 22 ble party during the preceding program year; 23 ii. an accounting of all cost recovery demands made to responsible 24 parties, actual monies collected, and penalties or other collection 25 measures taken during the preceding program year; 26 iii. an accounting of all expenditures from the climate change adapta- 27 tion fund established pursuant to section ninety-seven-m of the state 28 finance law, including at a minimum: 29 (1) expenditures that benefit disadvantaged communities as defined in 30 section 75-0101 of this chapter; 31 (2) expenditures by project type; 32 (3) expenditures by percentage of overall funding used for grant 33 programs for municipalities and not-for-profit and community organiza- 34 tions; and 35 (4) expenditures for administration and implementation support; 36 iv. a review of climate change adaptive infrastructure projects' 37 status, including the number of projects that have been completed and 38 those projects which have been identified and remain unfunded; 39 v. a summary of the geographic distribution of climate change adaptive 40 infrastructure projects; and 41 vi. identification of future spending needs. 42 b. Such evaluation shall be made public on the department's website 43 and provided to the governor, the temporary president of the senate and 44 the speaker of the assembly on or before January first of the second 45 calendar year following the year in which this article is enacted into 46 law, and annually on or before September thirtieth thereafter. 47 [c. Any entity contracted by the department to conduct such evaluation 48 shall receive prompt payment of all moneys due upon completion of such 49 evaluation.] 11. The department shall publish all information, requests 50 for proposals, application forms, procedures and guidelines relating to 51 climate change adaptive infrastructure projects on its website and in a 52 manner that is accessible to the public and all potential recipients. 53 § 76-0105. Requirements for climate change adaptive infrastructure 54 projects. 55 For each contract for climate change adaptive infrastructure projects, 56 funded in part or in whole from the climate change adaptation fund 
 S. 824 11 1 established pursuant to section ninety-seven-m of the state finance law, 2 by a public entity, or a third party acting on behalf and for the bene- 3 fit of a public entity, the "public work" for the purposes of this 4 subdivision shall ensure that such contract shall contain a provision 5 that the iron and steel used or supplied in the performance of the 6 contract or any subcontract thereto, shall be produced or made in whole 7 or substantial part in the United States, its territories or 8 possessions. In the case of an iron or steel product all manufacturing 9 must take place in the United States, from the initial melting stage 10 through the application of coatings, except metallurgical processes 11 involving the refinement of steel additives. 12 § 4. Section 224-f of the labor law, as added by section 3 of part TT 13 of chapter 56 of the laws of 2023, is amended to read as follows: 14 § 224-f. Wage requirements for certain climate risk-related and energy 15 transition projects. 1. For purposes of this section, a "covered climate 16 risk-related and energy transition project" means a construction project 17 that receives at least one hundred thousand dollars of funds from the 18 New York climate action fund climate investment account established 19 pursuant to section ninety-nine-qq of the state finance law or the 20 climate change adaptation fund established pursuant to section ninety- 21 seven-m of the state finance law. 22 2. A covered climate risk-related and energy transition project shall 23 be subject to prevailing wage requirements in accordance with sections 24 two hundred twenty, two hundred twenty-a, two hundred twenty-b, two 25 hundred twenty-i, two hundred twenty-three, and two hundred 26 twenty-four-b of this article, provided that a covered climate risk-re- 27 lated and energy transition project may still otherwise be considered a 28 covered project pursuant to section two hundred twenty or two hundred 29 twenty-four-a of this article if it meets the definition therein. 30 3. For purposes of this section, a covered climate risk-related and 31 energy transition project shall exclude: 32 a. Privately owned construction work performed under a pre-hire 33 collective bargaining agreement between an owner or developer and a bona 34 fide building and construction trades labor organization which has 35 established itself, and/or its affiliates, as the collective bargaining 36 representative for all persons who will perform work on such a project, 37 and which provides that only contractors and subcontractors who sign a 38 pre-negotiated agreement with the labor organization can perform work on 39 such a project; or 40 b. Construction work on one- or two-family dwellings where the proper- 41 ty is the owner's primary residence, or construction work performed on 42 property where the owner of the property owns no more than four dwelling 43 units; or 44 c. Construction work performed on a multiple residence and/or ancil- 45 lary amenities or installations that is wholly privately owned in any of 46 the following circumstances: 47 (i) where no less than twenty-five percent of the residential units 48 are affordable and shall be retained subject to an anticipated regulato- 49 ry agreement with a local, state, or federal governmental entity, or a 50 not-for-profit entity with an anticipated formal agreement with a local, 51 state, or federal governmental entity for purposes of providing afforda- 52 ble housing in a given locality or region provided that the period of 53 affordability for a residential unit deemed affordable under the 54 provisions of this paragraph shall be for no less than fifteen years 55 from the date of construction; or 
 S. 824 12 1 (ii) where no less than thirty-five percent of the residential units 2 involves the provision of supportive housing services for vulnerable 3 populations provided that such units are subject to an anticipated regu- 4 latory agreement with a local, state, or federal governmental entity. 5 4. As a condition of receiving funds from the New York climate action 6 fund climate investment account established pursuant to section ninety- 7 nine-qq of the state finance law or from the climate change adaptation 8 fund established pursuant to section ninety-seven-m of the state finance 9 law for a covered climate risk-related and energy transition project, 10 the owner or developer of such covered climate risk-related and energy 11 transition project, or a third party acting on such owner's or develop- 12 er's behalf, shall agree to enter into a labor peace agreement with at 13 least one bona fide labor organization either: 14 a. where such bona fide labor organization is actively representing 15 non-construction employees who will be working within the covered 16 climate risk-related and energy transition project once built; or 17 b. upon notice by a bona fide labor organization that is attempting to 18 represent such non-construction employees. 19 5. For purposes of this section "labor peace agreement" means an 20 agreement between an owner and/or developer and labor organization that, 21 at a minimum, protects the state's proprietary interests by prohibiting 22 labor organizations and members from engaging in picketing, work stop- 23 pages, boycotts, and any other economic interference. 24 6. The owner or developer using funds from the New York climate action 25 fund climate investment account established pursuant to section ninety- 26 nine-qq of the state finance law or from the climate change adaptation 27 fund established pursuant to section ninety-seven-m of the state finance 28 law for a covered climate risk-related and energy transition project 29 pursuant to this section shall: 30 a. require the use of apprenticeship agreements as defined by article 31 twenty-three of this chapter; or for industries without apprenticeship 32 programs, require the use of workforce training, preferably in conjunc- 33 tion with a bona fide labor organization; and 34 b. consider use of registered pre-apprenticeship direct entry programs 35 for the recruitment of local and/or disadvantaged workers. 36 7. For purposes of this section, the "fiscal officer" shall be deemed 37 to be the commissioner. The enforcement of any covered climate risk-re- 38 lated and energy transition project under this section shall be subject 39 to the requirements of sections two hundred twenty, two hundred twen- 40 ty-a, two hundred twenty-b, two hundred twenty-i, two hundred twenty- 41 three, two hundred twenty-four-b of this article, and section two 42 hundred twenty-seven of this chapter and within the jurisdiction of the 43 fiscal officer; provided, however, nothing contained in this section 44 shall be deemed to construe any covered climate risk-related and energy 45 transition project as otherwise being considered public work pursuant to 46 this article. 47 8. The fiscal officer may issue rules and regulations governing the 48 provisions of this section. Violations of this section shall be grounds 49 for determinations and orders pursuant to section two hundred twenty-b 50 of this article. 51 9. For any building service work on a covered climate risk-related and 52 energy transition project, prevailing wage shall be paid consistent with 53 article nine of this chapter. 54 10. Any public entity receiving at least five million dollars in funds 55 from the New York climate action fund climate investment account estab- 56 lished pursuant to section ninety-nine-qq of the state finance law or 
 S. 824 13 1 from the climate change adaptation fund established pursuant to section 2 ninety-seven-m of the state finance law for a project which involves the 3 construction, reconstruction, alteration, maintenance, moving, demoli- 4 tion, excavation, development or other improvement of any building, 5 structure or land, shall be subject to section two hundred twenty-two of 6 this article. 7 § 5. Subdivision (a) of section 314 of the tax law, as amended by 8 chapter 190 of the laws of 1990, is amended to read as follows: 9 (a) General.[--] Except in accordance with proper judicial order or as 10 otherwise provided by law, it shall be unlawful for any tax commission- 11 er, any officer or employee of the department of taxation and finance, 12 or any person who, pursuant to this section, is permitted to inspect any 13 return, or to whom any information contained in any return is furnished, 14 or any person engaged or retained by such department on an independent 15 contract basis, or any person who in any manner may acquire knowledge of 16 the contents of a return filed pursuant to this article, to divulge or 17 make known in any manner the amount of income or gross receipts or any 18 particulars set forth or disclosed in any return under this article. The 19 officers charged with the custody of such returns shall not be required 20 to produce any of them or evidence of anything contained in them in any 21 action or proceeding in any court, except on behalf of the state or the 22 commissioner of taxation and finance in an action or proceeding under 23 the provisions of this chapter or in any other action or proceeding 24 involving the collection of a tax due under this chapter to which the 25 state or the commissioner is a party or a claimant, or on behalf of any 26 party to any action or proceeding under the provisions of this article 27 when the returns or facts shown thereby are directly involved in such 28 action or proceeding, in any of which events the court may require the 29 production of, and may admit in evidence, so much of said returns or of 30 the facts shown thereby as are pertinent to the action or proceeding and 31 no more. The commissioner may, nevertheless, publish a copy or a summary 32 of any determination or decision rendered after the formal hearing 33 provided for in this chapter. Nothing herein shall be construed to 34 prohibit the delivery to a petroleum business or its duly authorized 35 representative of a copy of any return filed by it, nor to prohibit the 36 publication of statistics so classified as to prevent the identification 37 of particular returns and the items thereof, or the disclosure of data 38 other than taxpayer identity information from a return or returns of one 39 or more petroleum or fossil fuel businesses to the department of envi- 40 ronmental conservation or the New York state energy research and devel- 41 opment authority for the purpose of implementing the New York state 42 climate change superfund act, or the publication of delinquent lists 43 showing the names of petroleum businesses who have failed to pay their 44 taxes at the time and in the manner provided by section three hundred 45 eight of this article together with any relevant information which in 46 the opinion of the commissioner may assist in the collection of such 47 delinquent taxes; or the inspection by the attorney general or other 48 legal representatives of the state of the return of any petroleum busi- 49 ness which shall bring action to set aside or review the tax based ther- 50 eon, or against whom an action or proceeding under this chapter has been 51 recommended by the commissioner or the attorney general or has been 52 instituted; or the inspection of the returns of any petroleum business 53 by the comptroller or duly designated officer or employee of the state 54 department of audit and control, for purposes of the audit of a refund 55 of any tax paid by such petroleum business under this article. Provided, 56 further, nothing herein shall be construed to prohibit the disclosure of 
 S. 824 14 1 taxpayer identity information, including name, mailing address and 2 taxpayer identifying number (social security account number, or such 3 other number as has been assigned by the secretary of the United States 4 treasury or [his] such secretary's delegate, or by the commissioner of 5 taxation and finance), with respect to persons who are registered as 6 residual petroleum product or aviation fuel businesses under this arti- 7 cle or as distributors of motor fuel or diesel motor fuel or kero-jet 8 fuel only for the purpose of article twelve-A of this chapter or this 9 article, whose registration as a residual petroleum product business or 10 as such distributor has been cancelled or suspended pursuant to this 11 article or such article twelve-A or whose application for registration 12 as a residual petroleum product business or as such distributor has been 13 refused pursuant to this article or such article twelve-A. In addition, 14 the commissioner may disclose the fact that a person is not registered 15 as a residual petroleum business under this article or as a distributor 16 of motor fuel, diesel motor fuel or kero-jet fuel only under article 17 twelve-A of this chapter. Information disclosed pursuant to this subdi- 18 vision shall not, by itself, be construed as proof of compliance or 19 noncompliance with the provisions of this chapter. 20 § 6. Section 97-m of the state finance law, as added by a chapter of 21 the laws of 2024 amending the environmental conservation law, relating 22 to establishing the climate change adaptation cost recovery program; and 23 amending the state finance law relating to establishing the climate 24 change adaptation fund, as proposed in legislative bills numbers S. 25 2129-B and A. 3351-B, is amended to read as follows: 26 § 97-m. Climate change adaptation fund. 1. There is hereby established 27 in the custody of the comptroller and the commissioner of taxation and 28 finance a special [revolving] revenue fund to be known as the "climate 29 change adaptation fund" for the purpose of receiving moneys through cost 30 recovery demands and issuing funds for qualifying expenditures pursuant 31 to the climate change adaptation cost recovery program established in 32 article seventy-six of the environmental conservation law. 33 2. No monies shall be expended from the fund for any [project] purpose 34 except: 35 a. following appropriation by the legislature, qualifying expenditures 36 pursuant to the program, including their operation and maintenance, as 37 well as reasonable costs and expenses incurred by state entities for 38 administering and directly supporting the implementation of climate 39 change adaptive infrastructure projects under the program; provided, 40 however, that no more than one percent of the receipts of the fund may 41 be used for such administrative or implementation costs; and 42 b. Following appropriation or authorization by the legislature, trans- 43 fer to other funds for investments, payments or benefits directly 44 related to such climate change adaptive infrastructure projects, as 45 appropriate. 46 3. Any appropriation for qualifying expenditures shall indicate by 47 project type the amount of qualifying expenditures to be made available, 48 however, notwithstanding any other provision of law to the contrary, 49 amounts associated with various project types shall be fully inter- 50 changeable within the overall appropriation. 51 4. Revenues in the fund shall be kept separate and shall not be 52 commingled with any other moneys in the custody of the comptroller or 53 the commissioner of taxation and finance. All deposits of such revenues 54 shall, if required by the comptroller, be secured by obligations of the 55 United States or of the state having a market value equal at all times 56 to the amount of such deposits and all banks and trust companies are 
 S. 824 15 1 authorized to give security for such deposits. Any such revenues in such 2 fund may, upon the discretion of the comptroller, be invested in obli- 3 gations in which the comptroller is authorized to invest pursuant to 4 section ninety-eight-a of this article. 5 [4.] 5. All payments of moneys from the fund shall be made on the 6 audit and warrant of the comptroller. 7 § 7. Section 6 of a chapter of the laws of 2024 amending the environ- 8 mental conservation law relating to establishing the climate change 9 adaptation cost recovery program; and amending the state finance law 10 relating to establishing the climate change adaptation fund, as proposed 11 in legislative bills numbers S. 2129-B and A. 3351-B, is amended to read 12 as follows: 13 § 6. Severability. If any word, phrase, clause, sentence, paragraph, 14 section, or part of this act shall be adjudged by any court of competent 15 jurisdiction to be invalid, such judgment shall not affect, impair, or 16 invalidate the remainder thereof, but shall be confined in its operation 17 to the word, phrase, clause, sentence, paragraph, section, or part ther- 18 eof directly involved in the controversy in which such judgment shall 19 have been rendered. It is hereby declared to be the intent of the legis- 20 lature that this act would have been enacted even if such invalid 21 provisions had not been included herein. 22 § 8. Severability. If any word, phrase, clause, sentence, paragraph, 23 section, or part of this act shall be adjudged by any court of competent 24 jurisdiction to be invalid, such judgment shall not affect, impair, or 25 invalidate the remainder thereof, but shall be confined in its operation 26 to the word, phrase, clause, sentence, paragraph, section, or part ther- 27 eof directly involved in the controversy in which such judgment shall 28 have been rendered. It is hereby declared to be the intent of the legis- 29 lature that this act would have been enacted even if such invalid 30 provisions had not been included herein. 31 § 9. Construction. This act, being necessary for the general health, 32 safety, and welfare of the people of this state, shall be liberally 33 construed to effect its purpose. 34 § 10. This act shall take effect on the same date and in the same 35 manner as a chapter of the laws of 2024 amending the environmental 36 conservation law relating to establishing the climate change adaptation 37 cost recovery program; and amending the state finance law relating to 38 establishing the climate change adaptation fund, as proposed in legisla- 39 tive bills numbers S. 2129-B and A. 3351-B, takes effect.