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§ 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.