Section 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.