PRESS RELEASE

April 10, 2008

ENVIRONMENTAL WATCHDOG CALLS ON NYS LEGISLATURE & GOVERNOR TO ADDRESS GREEN PRIORITIES NOT INCLUDED IN 2007-2008 BUDGET

Final Budget Fails to Address Environmental Priorities

(ALBANY, NY) - The New York State Budget for Fiscal Year (SFY) 2008-09 did not fix overly generous tax credits or enact new revenue proposals, and therefore failed to address several significant green concerns raised by Environmental Advocates of New York this year. Priority issues that went unaddressed by state leaders and lawmakers in this year’s budget include much-needed reforms to tax credits under the Brownfield Cleanup Program and updating the state’s bottle deposit law, as well as the Title V air pollution fees. The budget also included wasteful spending on a coal-fired power plant in Jamestown, New York, and failed to keep revenues generated by the state’s role in the regional climate plan clean and green, among other issues. Many state lawmakers expressed their intentions to pursue legislative fixes to address these issues during the remainder of the Legislative Session and we look forward to a productive three months.

From an environmental perspective, the SFY 2008-09 budget failed to address the following:  

Brownfield Tax Credits Benefit Developers, Not Communities
The State Budget fails to fix overly generous tax credits under the Brownfield Cleanup Program, which currently benefit developers over communities. According to the State Division of Budget, more than $1 billion in tax breaks may go to just 54 developers. Because tax breaks are based on redevelopment value, rather than cleanup cost, sites with the least contamination and the highest redeveloped value get cleaned up and contaminated sites that would most benefit from redevelopment are left dirty and undeveloped. Environmental Advocates’ recommendations to reform this program are to disconnect program eligibility from tax credit eligibility, among other fixes.  

Outdated Air Pollution Fees Cost Taxpayers
The Budget failed to update the fees polluters must pay on regulated air contaminants. Currently, outdated fees and caps associated with the Title V program mean that polluters and taxpayers share responsibility for supporting New York’s air pollution regulatory oversight, rather than polluters alone as required by the federal Clean Air Act.

Climate Change Funds Not Clean or Green
Funds generated by New York’s role in the Regional Greenhouse Gas Initiative (RGGI) were not earmarked to support clean energy and efficiency programs. The significant revenues that the regional climate plan is anticipated to generate—more than $35 million in the first auction alone—could help offset the program’s costs and cut consumers’ utility bills if these monies are directed to clean energy and efficiency programs.  

Money for “Clean” Coal
State lawmakers earmarked $400,000 to fund an experimental “clean coal” plant in Jamestown, New York—a facility that doesn’t even have a permit to date. This is just one example of the millions of dollars included in the budget that do not restore cuts to existing programs and call into question the purpose of such profligate spending during a time of fiscal restraint.

No Power for Jobs Fix
The Power for Jobs Program was renewed again for just one year without reform, despite calls from environmental groups to fix eligibility for this program. Any business or nonprofit organization that receives low-cost power under this program should be required to make or commit to making energy efficiency improvements or at least have an energy audit. 

Environmental Protection Fund Sweep
Also of note is the increased appropriation to the state’s primary source of environmental funding. The final budget increases the Fund to $255 million from $250. However, state leaders agreed to transfer or “sweep” $125 million from the Environmental Protection Fund to the state’s general fund, rather than keep these monies in the green trust fund as intended.

The budget includes more than one initiative designed to protect the health of New York’s natural resources. 

Capital for Parks Backlog
On the plus side, Environmental Advocates of New York supports directing $95 million to capital projects at state parks facilities. These upgrades are needed to ensure that our state parks are safe and accessible for all New Yorkers. Many parks, especially those serving urban areas, are in great need of resources and repair.

Bioheat Tax Credits
Another positive in this year’s budget is the reinstatement of a tax credit which helps produce cleaner air. The bioheat tax credit will provide an incentive for the use of biodiesel as a home heating fuel. The use of biodiesel will reduce pollutants produced by traditional home heating oil, and thus help improve air quality throughout the state. 

Environmental Advocates of New York looks forward to working with state lawmakers to address protecting the health of our air, land and water by means of legislative measures during the remainder of the Legislative Session.

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Environmental Advocates of New York is the state’s government watchdog, holding lawmakers and agencies accountable for implementing policy that protects natural resources and safeguards public health. Environmental Advocates works alone and in coalitions, and has more than 7,000 individual and 130 organizational members. The 501(c)(3) is also the New York affiliate of the National Wildlife Federation. For more information call 518.462.5526 or visit www.eany.org.