Section 56-0609. Clean air for schools projects

1. Of the monies received by the state from the sale of bonds pursuant
  to  the  Clean Water/Clean Air Bond Act of 1996, one hundred twenty-five
  million dollars ($125,000,000) shall be available for disbursements  for
  clean air for schools projects.
    The  power  authority is authorized to undertake clean air for schools
  projects  for  elementary,  middle  and  secondary  schools.  The  power
  authority  may undertake such projects in cooperation with local gas and
  electric corporations and/or energy service companies.
    For the purposes of this section, "clean  air  for  schools  projects"
  shall mean projects to improve air quality by schools including, but not
  limited  to,  projects  that  replace  coal-fired  furnaces  and heating
  systems with furnaces and systems fired by oil or gas.
    2. Any school district may make an application to the power  authority
  for  state  assistance  payments  from  funds  made available under this
  article toward the costs of clean air for schools projects.
    a. The power authority shall review such applications and may approve,
  deny, or recommend modifications thereto, consistent with applicable law
  and consistent with criteria, standards, or rules  and  regulations,  as
  the  power  authority  may  establish, relative to such projects. In the
  event that an application is denied, the power authority shall  provide,
  in writing, reasons for the denial to the applicant.
    b.  In reviewing such applications, the power authority shall give due
  consideration to the following criteria:
    (i) the extent to which the project provides the greatest  improvement
  in   air   quality  both  within  the  school  and  in  the  surrounding
  neighborhood;
    (ii) the age of the system being replaced; and
    (iii)  the  potential  for  energy  cost   savings   from   efficiency
  improvements.
    c. Upon approval of an application, the power authority may enter into
  a contract with the school district to undertake a clean air for schools
  project.
    3.   Notwithstanding  any  provision  of  law  to  the  contrary,  the
  comptroller is authorized and directed to  release  monies  constituting
  state  assistance  payments, in amounts set forth in a schedule approved
  by the director of the budget, to the power authority for  the  purposes
  authorized  by  this  section.  Any monies constituting state assistance
  payments  made  available  to  the  power  authority  for  the  purposes
  specified  by  this  section shall not be subject to the requirements of
  section one thousand thirteen of the public authorities law.