§ 97-bbb. Clean water/clean air fund. 1. There is hereby established in the joint custody of the comptroller and the commissioner of taxation and finance a special fund to be known as the Clean Water/Clean Air Fund.

2. Such fund shall consist of revenues collected in the state from the tax on the conveyance of real property pursuant to § 1402 of the tax law and deposited to the fund pursuant to § 1421 of the tax law.

3. Revenues in the clean water/clean air fund shall be kept separate and shall not be commingled with any other moneys in the custody of the comptroller. All deposits of such revenues shall, if required by the comptroller, be secured by obligations of the United States or of the state having a market value equal at all times to the amount of such deposits and all banks and trust companies are authorized to give security for such deposits. Any such revenues in such fund may, upon the discretion of the comptroller, be invested in obligations of the United States or of the state or in obligations the principal of and interest on which are guaranteed by the United States or by the state.

4. On or before each April first, and at least quarterly thereafter, the director of the budget shall certify to the comptroller, the chairperson of the senate finance committee and the chairperson of the assembly ways and means committee a monthly amount projected to be necessary to meet the total annual debt service requirements for the current fiscal year on any bonds issued as authorized by the Clean Water/Clean Air Bond Act of 1996. Such amount shall be calculated by estimating the total annual debt service for the current fiscal year less any amounts already retained to meet such requirement divided by the number of months remaining in such year. Such monthly amount shall be retained within such fund for transfer to the general debt service fund for reimbursement of debt service on such bonds.

5. The comptroller shall transfer, as needed, to the general debt service fund such moneys as are necessary to reimburse such fund for any debt service disbursements made on such bonds. In the event that moneys retained in the clean water/clean air fund are less than the amount needed for such reimbursement, the comptroller shall offset such shortfall from subsequent deposits in the clean water/clean air fund as soon as the revenue is available.

6. No later than the last day of the month, the comptroller shall transfer to the general fund any moneys received in such fund during the month that are in excess of the monthly amount certified by the director of the budget. Notwithstanding any other provision of law, the comptroller shall, on the last day of each fiscal year pay to the general fund all moneys remaining in such fund that are not needed for reimbursement of debt service for the current fiscal year.