DEC Releases Environmental Bond Act Draft Guidelines for Disadvantaged Community Investment Eligibility and Accounting

Draft Guidelines Now Available for Public Review and Comment through June 21, 2024

The New York State Department of Environmental Conservation (DEC) today released for public review and comment draft eligibility and accounting guidelines to help fulfill the Clean Water, Clean Air and Green Jobs Environmental Bond Act of 2022’s required investments in communities most burdened by the impacts of environmental pollution and climate change. The draft guidelines will help ensure compliance by all New York State agencies, authorities, and entities administering Bond Act funds with achieving the goal that 40 percent of Bond Act funds benefit disadvantaged communities (DAC) provided that these communities receive at least 35 percent of the benefits of the overall $4.2 billion Bond Act spending statewide.  

While the Bond Act requires specific investments in DACs, all communities statewide are eligible to receive funding. This guidance does not eliminate New York State’s ability to make program decisions to benefit those most in need based on an agency, authority, or other funding entity’s determinations, including but not limited to DACs. All eligible entities are encouraged to apply for Bond Act funding opportunities.

The Bond Act requires investments in DACs to ensure at least proportionate benefit of the funds are realized in areas that face higher burdens and vulnerability across environmental, public health, socioeconomic, and climate factors. 

The guidelines support funding for construction or implementation projects that fit designated criteria and further describe:

  • Prioritization for DACs in Bond Act eligibility;
  • Guidance for prioritizing DACs in competitive solicitations;
  • Guidance for prioritizing DACs in first-come, first-served programs;
  • Guidance for prioritizing DACs in place-based programs;
  • Guidance for prioritizing DACs in community-wide programs; and
  • Accounting requirements for Bond Act entities.

The full eligibility guidelines are available in this week’s Environmental Notice Bulletin

Public comments on the draft guidelines will be accepted until Friday, June 21, 2024, at 5 p.m. and can be submitted in writing: by mail to Adriana Espinoza, NYS DEC, 625 Broadway, Albany, NY 12233; and by email to Bondact@dec.ny.gov with the subject: “DAC Guidelines.” Questions can be directed to 518-402-8556.

Disadvantaged Communities 
The Bond Act requires that disadvantaged communities shall receive no less than 35 percent, with the goal of 40 percent, of the benefit of total Bond Act funds ($4.2 billion). Disadvantaged communities are those identified by the Climate Justice Working Group, pursuant to the Climate Leadership and Community Protection Act. Consistent with this Bond Act requirement, DEC will aim to prioritize 40 percent of grant awards benefit disadvantaged communities.  

New York’s Clean Water, Clean Air and Green Jobs Environmental Bond Act of 2022 
On Nov. 8, 2022, New Yorkers overwhelmingly approved the $4.2 billion Environmental Bond Act. State agencies, local governments, and partners will be able to access funding to protect water quality, help communities adapt to climate change, improve resiliency, and create green jobs. Bond Act funding will support new and expanded projects across the state to safeguard drinking water sources, reduce pollution, and protect communities and natural resources from climate change.   

Since the Bond Act passed, an inter-agency working group comprised of multiple state agencies has been implementing a transparent and collaborative process to identify needs for environmental funding across the state to help develop program logistics. In the last year, the state announced a $200 million funding investment toward the state’s existing Water Infrastructure Improvement and Intermunicipal Grant programs, $100 million available for zero-emission school buses, $100 million available for Clean Green Schools, $13.1 million to support construction of the Adirondack Rail Trail, and State-administered forestry projects to plant 25 million trees by 2033. Additional funding opportunities are available now. Find more Bond Act-related information and sign up for progress updates at environmentalbondact.ny.gov.

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