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December 29,=20 2008
Dear President-Elect = Obama and=20 Vice President-Elect Biden:Seventy-six years ago, = as he=20 ascended to the presidency during the Great Depression, former New York = Governor=20 Franklin Delano Roosevelt said, =93In every dark hour of our national = life, a=20 leadership of frankness and of vigor has met with that understanding and = support=20 of the people themselves which is essential to victory.=94Today, as the United = States=20 confronts its worst economic crisis since the Great Depression, the = people are=20 once again demanding =93a leadership of frankness and vigor=94=97and you = have answered=20 this demand. You have courageously proposed an ambitious economic = recovery=20 package that will help states and working families in fiscal distress = while=20 making the largest investment in our national infrastructure in = generations.=20 Indeed, any economic recovery package must be bold enough to not only = have an=20 economic impact, but also a psychological impact.I applaud you for = bringing the=20 nation=92s governors to Philadelphia earlier this month to discuss with = you the=20 challenges facing our nation. Since then, I have continued to consult = with my=20 fellow Governors, including Deval Patrick (Mass.), Jennifer Granholm = (Mich.),=20 Jon Corzine (N.J.), Ted Strickland (Ohio), and Jim Doyle (Wis.), = regarding the=20 appropriate size and scope of legislation to stimulate our economy and = put=20 Americans back to work. In broad terms, I strongly support inclusion of = the=20 following in any economic recovery package to be considered by=20 Congress:
    * = $500=20 billion in aid to states and working families, including $250 billion = for=20 countercyclical programs such as FMAP, unemployment insurance, food = stamps, TANF=20 and child care; and $250 billion for flexible education block grants to=20 states.
    * = $300=20 billion for infrastructure investments, including funds for = =93ready-to-go=94=20 projects to rehabilitate and construct our transportation, water, = schools,=20 housing, broadband, and health information technology infrastructure, = creating=20 thousands of jobs in the near-term, and supporting economic development, = public=20 health and safety for decades to come; and funds for longer-term = projects, which=20 have transformative regional impacts, create green jobs, and support = national=20 goals for energy efficiency, environmental conservation and smart=20 growth.
Your consideration of = the=20 ambitious economic recovery agenda detailed in this letter is deeply=20 appreciated. No state has been more severely impacted by this crisis = than New=20 York, the home of Wall Street and the global capital of business and = finance.=20 Our recovery plan includes initiatives that the Empire State needs the = most=20 right now=97not only to overcome the current crisis, but to begin laying = the=20 foundation for the economy of the future. I will also continue to work = with New=20 York=92s congressional delegation, municipal officials and county = leaders to=20 develop a list of their important infrastructure and development=20 priorities.
The State of New York = stands=20 ready to assist your administration during this difficult period, and I=20 personally look forward to working with you to lead New York and our = nation=20 toward a brighter future.I. Direct and = Immediate Aid to=20 States and Working FamiliesNew York now confronts = the=20 largest budget deficit in our history. Because Wall Street provides 20 = percent=20 of our State=92s tax revenue, we have a $1.7 billion budget deficit in = the current=20 fiscal year, a $13.7 billion deficit for fiscal year 2009-10, and a = deficit over=20 the next three years of $51.1 billion.On December 16, I = released my=20 2009-10 Executive Budget, which held General Fund spending to zero = growth. To=20 accomplish this, we had to close a gap that was approximately 25 percent = of our=20 General Fund =96 an unprecedented level of savings. We were forced to = cut=20 virtually every sector of our Budget, including, most notably, = substantial=20 reductions in health care, education, local government aid, and the = State=20 workforce. We are quickly reaching the point where further cuts to vital = programs will jeopardize our fundamental responsibility to preserve = critical=20 core services to our citizens. Targeted assistance from the federal = government=20 is desperately needed. Accordingly, the most essential item in any = economic=20 recovery package is direct and immediate aid to states and working=20 families.
I urge your = administration to=20 support an investment of $500 billion over at least two years to = stimulate state=20 economies and help working families. In our view, the most effective way = to=20 provide this relief is through:Countercyclical = Programs =96 $250=20 Billion
    * = Federal=20 Medical Assistance Percentages (FMAP): As a result of the current = recession,=20 states=92 Medicaid rolls have expanded dramatically, increasing the = burden on=20 already stressed state budgets. A temporary increase in FMAP would help = states=20 like New York that are forced to consider significant cuts to health = care and=20 other essential services. The Medicaid match rate should be temporarily=20 increased to provide $200 billion over at least two years to mitigate = cuts to=20 these programs.
    *=20 Unemployment Insurance and Worker Training Placement: We expect that at = least=20 180,000 New Yorkers will lose their jobs during this economic downturn, = raising=20 our unemployment rate to 7.1 percent. An economic recovery package = should=20 include federal funds to provide states with fiscal incentives to = modernize=20 their outdated employment insurance programs to address this growing = population.=20 Providing $8 billion in such incentives will encourage states to provide = benefits to eligible recipients and increase participation in lay-off = aversion=20 programs. Furthermore, a commitment to utilize national programs that = stress=20 re-employment, service dislocated workers, and provide youth training = will speed=20 the recovery. Re-investing $250 million for re-employment services and = $1.5=20 billion in Workforce Investment Act (WIA) programs will immediately = address the=20 increasing needs of dislocated workers. A $1 billion federal investment = to=20 revive the Summer Youth Jobs program, as well as $100 million for the = Youth=20 Conservation Corps program would put hundreds of thousands of youth to = work.=20 Finally, providing $400 million to expand National Service positions = will help=20 address rising unemployment while meeting critical needs in our=20 communities.
    * = Food=20 Stamps: As the economy continues to decline, more Americans are = struggling to=20 feed their families. In New York, the demand for food assistance has = increased=20 by 30 percent over last year. Any economic recovery package should = include a=20 short-term food stamp benefit increase to help low-income families = endure these=20 difficult economic times. Doing so will also have the effect of = immediately=20 injecting money into the economy. Accordingly, I urge you to include $20 = billion=20 in funding to states over two years for enhanced benefits and increased = access=20 to food stamp benefits for our most vulnerable populations.    * = TANF: The=20 Temporary Assistance for Needy Families (TANF) program provides valuable = safety-net assistance by allowing families to meet their most basic = needs. In=20 the face of increased need, at least an additional $5 billion in block = grant=20 funding should be made available to those states that provide families = with=20 basic assistance. In addition, the TANF contingency fund should be = increased by=20 $2 billion to ensure that states have adequate ability to meet the = emergency=20 needs of families and children.    * = Child Care:=20 Parents rely on child care in order to work to support their families = and to=20 ensure that their children are cared for in safe environments. Any = economic=20 recovery package should include at least $1 billion increase in child = care=20 funding with no state match to ensure families who need assistance in = affordable=20 child care can get the help they need.Flexible Education = Block Grants=20 =96 $250 Billion
The current economic = climate is=20 forcing states to consider significant cuts to P-16 education funding.=20 Substantial federal investment in education will be needed to stem this = tide. A=20 flexible education block grant of at least $250 billion would provide = governors=20 with much needed fiscal relief, and mitigate the need for cuts to vital=20 education programs.II. Infrastructure=20 Investment
I strongly commend = your call for=20 the nation=92s most ambitious investment in infrastructure since the = Interstate=20 Highway System was built in the 1950s. As you have stated, = infrastructure=20 investments will not only put people to work now, they will support = economic=20 growth for decades to come.Nationally, I urge you = to=20 include an infrastructure investment of $300 billion in your economic = recovery=20 proposal. It is estimated that for every $1 billion invested in = infrastructure,=20 30,000 jobs are created. Using this estimate, New York could create as = many as=20 351,000 jobs statewide.New York State alone = has at=20 least 1,922 infrastructure projects, totaling $11.7 billion that can be=20 =93ready-to-go=94 (i.e., federal funds can be obligated within 180 = days). Of these=20 =93ready-to-go=94 projects, 481 are traditional infrastructure projects = (i.e.,=20 transportation and water), totaling $5.0 billion. Using the broad = definition of=20 infrastructure that you have proposed, New York has an additional 1,231=20 =93ready-to-go=94 projects for school modernization, affordable housing, = state=20 parks, rural broadband, and health information technology, totaling $5.3 = billion. Finally, as I set forth in greater detail the following = section, New=20 York has at least 210 energy-related projects and programs totaling $1.4 = billion=20 that are =93ready to go.=94 The economic recovery package must provide a = flexible=20 source of funds for these latter two broader categories of = infrastructure=20 projects.
New York=92s Needs: = =93Ready-to-Go=94=20 Infrastructure Projects & CostProject Type =   =20 # of Projects    Cost (Millions)Transportation = Infrastructure=20    382 projects    $ 3,655.736
Wastewater = Infrastructure=20    92 projects    $ 1,349.423Clean Water = Infrastructure=20    7 projects    $ 132.593State Parks = Infrastructure=20    31 projects    $ 35.305K-12 School = Construction=20    737 projects    $ 966.145Higher Ed School = Construction=20    245 projects    $ 2,636.506
Affordable Housing =   =20 202 projects    $ 192.973Broadband = Infrastructure=20    9 projects    $ 8.464Health Information = Technology=20    7 projects    $ 1,300.000Energy Infrastructure = &=20 Green Jobs    210 projects    $=20 1,418.619
INFRASTRUCTURE TOTAL=20    1,922 projects    = $11,695.764Lastly, I strongly = support the=20 proposal to fund a second tier of critical, longer-term infrastructure = projects=20 that advance new national goals. New York has billions of dollars worth = of=20 additional projects that could begin construction within 24 months that = will=20 further this agenda and advance new national goals. The federal = government=20 should provide engineering funds to accelerate the design of these = projects. In=20 the future, I look forward to continuing to work with your = administration to=20 identify these projects.Project = DeliveryYour call for a=20 =93use-it-or-lose-it=94 philosophy is a smart and fair approach to = sharing these=20 limited federal funds. My staff and I have devoted considerable time to = careful=20 review of the projects and funding amounts summarized in this letter to = ensure=20 that the intended purpose will be served =96 to put New Yorkers to = work.I plan to assign a = member of my=20 senior staff to oversee the implementation of these projects. This = person will=20 lead a task force of agency Commissioners that will review project = status,=20 identify problems, and work cooperatively to overcome obstacles. This = task force=20 will work with our private-sector partners to identify potential = contracting=20 issues and streamline processes to ensure quick implementation of = projects. To=20 encourage transparency, I will set up a reporting structure (potentially = via a=20 centralized or agency website(s)) to demonstrate that the projects are = indeed=20 being delivered and good paying jobs are being created.In order to most = expeditiously=20 advance projects funded by the economic recovery package, the bill = should allow=20 for quick approval of projects that have no significant environmental = impact. In=20 the short term, your administration should consider waiving certain = federal=20 requirements, as necessary, to ensure that work begins on these projects = as=20 quickly as possible, and over the long term, I encourage your = administration to=20 work with Congress to address the multitude of onerous laws, = regulations, and=20 practices that have clogged the project delivery pipeline.Transportation=20 Infrastructure
For =93ready-to-go=94 = recovery=20 projects, I encourage you to use the blueprint put forward in H.R. 7110, = which=20 the U.S. House of Representatives passed overwhelmingly in September. In = particular, any economic recovery package considered by Congress and = your=20 administration should include:    * = Funding for=20 highways, bridges, mass transit, and aviation allocated according to = proportion=20 of current state shares of transportation funding    * = 100%=20 federal funding, waiving federal match requirements    * = Project=20 eligibility determined by the Surface Transportation Program = (STP)    * = Quick=20 federal approval of projects that have been designed outside of the = federal=20 process but meet core requirementsAfter a comprehensive = review of=20 statewide transportation priorities, the State of New York has at least = 382=20 projects totaling more than $3.65 billion that can be obligated within = 180 days.=20 These projects are all consistent with our Statewide Transportation=20 Plan:
    * = Highways=20 & Bridges: 334 projects, totaling $1.83 billion    *=20 Metropolitan Transportation Authority (MTA) Transit: 33 projects, = totaling $1.5=20 billion
    * = Non-MTA=20 transit systems: 12 projects, totaling $220 million for bus=20 replacements
    * = Rail: 2=20 projects, totaling $41 million    * = Aviation:=20 $110 million in Airport Improvement Program (AIP)-eligible = projectsNew York State has = additional=20 =93ready-to-go=94 transportation needs that extend beyond those funded = by=20 traditional federal trust fund programs, such as improvements on = Amtrak=92s Empire=20 Corridor, at the Port of Albany, and in our State Parks system; = development of=20 the Farley Post Office as Moynihan Station; and construction of the = Access to=20 the Region=92s Core (ARC) tunnel.Wastewater and = Drinking Water=20 Infrastructure
A major investment in = our=20 nation=92s deteriorating wastewater infrastructure is long overdue. At = the=20 national level, $240 billion over 20 years is required to address its = wastewater=20 infrastructure needs. Recent dramatic cuts in the Clean Water State = Revolving=20 Fund (SRF) have diminished the ability of states and municipalities to = address=20 critical wastewater infrastructure needs.New York needs $36.2 = billion=20 over the next 20 years to rebuild its wastewater infrastructure. In the = short=20 term (FFY 2009), we need $4.5 billion for 418 separate projects. Of = these=20 projects, 92 projects totaling $1.35 billion are =93ready to go.=94 = Communities=20 across the state have applied for funding through the Clean Water SRF = and have=20 design plans ready for these projects. The NYS Environmental Facilities=20 Corporation, which implements the CWSRF, can obligate the funds = immediately to=20 get them started.
We further recommend = that=20 Congress include significant funding for the CWSRF, to help close the = gap=20 between the CWSRF=92s historical high funding level and President = Bush=92s FY2009=20 request. Water conservation and energy conservation requirements should = be built=20 into the funding awards. In addition, loan forgiveness should be = considered for=20 hardship communities because many small and low-income communities lack=20 sufficient financial resources and/or face a declining ratepayer = base.Our country=92s = drinking water=20 infrastructure is also in disrepair. Currently, New York State has seven = drinking water infrastructure projects, totaling $133 million that are = =93ready to=20 go.=94
State Parks=20 Infrastructure
New York has the = nation=92s oldest=20 and largest system of State parks. Infrastructure improvements in these = parks=20 will create jobs in every region of our State and improve New Yorkers=92 = quality=20 of life. My Office of Parks and Recreation and Historic Preservation = (OPRHP) has=20 identified 31 infrastructure projects (including transportation and = clean water=20 projects) that are =93ready to go=94 in 180 days, totaling $35.3 = million. This=20 includes $20.4 million for ailing sewer and water infrastructure and = $14.9 for=20 transportation infrastructure in our State Parks facilities.School Modernization = and=20 Renovation
Modernizing and = renovating our=20 aging K-12 and public higher education facilities, and constructing new = ones,=20 will meet your stated goals of short-term job creation while laying the=20 foundation for future growth, opportunity and prosperity, and should be = included=20 as a central component of any infrastructure investment program. In New = York=20 State, we have a combined need of 982 =93ready-to-go=94 school projects = totaling=20 more than $3.6 billion at K-12 and public higher education = facilities.Many of New York=92s = K-12 public=20 schools are cramped, outdated, run-down, and unable to accommodate new = computer=20 technology. More than 4,000 schools are in need of renovations and/or = new=20 construction. In total, New York State has 737 =93ready-to-go=94 K-12 = school=20 modernization and renovation projects, totaling $966 million. We also = have=20 identified 245 =93ready-to-go=94 investments at higher education = facilities,=20 totaling $2.64 billion. Of these, $2.06 billion are =93green,=94 either = energy=20 saving or LEED-certified.Affordable Housing=20 Infrastructure and Community & Economic DevelopmentNew York State has = long been a=20 leader in affordable housing policy. Our State has a well-established = network of=20 affordable housing developers and community-based organizations which = will=20 insure that any additional capital funds are efficiently directed to = those=20 neighborhoods and communities that will benefit most from an infusion of = capital. New York has 202 =93ready-to-go=94 housing infrastructure = projects totaling=20 $193 million.
The NYS Division of = Housing and=20 Community Renewal (DHCR) has an unfunded capital projects pipeline = approaching=20 $639 million, comprised of 52 proposed multi-dwelling construction or=20 rehabilitation projects, offering 2740 units of housing. The pipeline = includes=20 14 projects at an advanced stage of readiness, with a total development = cost of=20 $117 million. If funded, these projects would commence construction or=20 rehabilitation within 180 days. These projects would construct, = rehabilitate and=20 preserve 603 units of affordable rental housing, provide construction = and=20 permanent jobs, and stimulate local economies across New York = State.I also urge you to = provide our=20 state housing agencies with much-needed relief on low-income housing tax = credit=20 regulations. The Low Income Housing Credit Program (LIHC) is the primary = tool=20 for leveraging private investment in affordable housing by helping to = match=20 private investment with other state and federal resources. To make the = LIHC=20 program more appealing to investors, the economic recovery package=20 could:
    * = Temporarily=20 reduce the credit period from ten to five years    * = Permit=20 =93carry-back=94 of the Housing Credit for up to five years and allow = these Housing=20 Credits to be used to offset Alternative Minimum Tax (AMT) liability = during that=20 period
    * = Expand=20 Community Reinvestment Act footprints by 25% for two to three years to = encourage=20 financial institutions (typically the largest LIHC purchasers) to invest = in=20 areas where they do not currently have CRA need    * = Waive the=20 =93at-risk=94 rules for Closely Held C Corporations for two to three = years so they=20 can fully utilize the LIHC benefitsThe Community = Development Block=20 Grant program is an effective way to provide funding directly to cities = and=20 counties for community and economic development. Our municipalities have = =93ready-to-go=94 projects to create jobs and make much needed = investments in our=20 communities and we support funding on the federal level to expand this = program.=20 The NYS CDBG program provides financing for eligible non-entitlement=20 communities, which are units of local government with populations less = than=20 50,000, and certain counties with populations of less than 200,000. = There are=20 1,272 non-entitlement communities in New York State. Larger entitlement=20 communities in New York receive direct allocations from the U.S. = Department of=20 Housing and Urban Development to administer their own CDBG programs. We = fully=20 support a reversal of recent trends by a restoration to full funding = levels and=20 we advocate for major increases in both entitlement and non-entitlement = CDBG=20 funding as part of the federal economic recovery efforts. There are 108 = NYS=20 CDBG-eligible projects, totaling $46.7 million, =93ready to go=94 within = 180 days.=20 Communities throughout New York, particularly Upstate, also require = funding for=20 economic development projects to attract industry and provide = infrastructure and=20 access improvements to industrial sites.New York also operates = an=20 innovative Main Streets grant program that provides funding for building = renovations, fa=E7ades and streetscape improvements and, in limited = cases, capital=20 funding for projects to anchor downtown districts. The program provides=20 technical assistance and other resources to support community = revitalization=20 efforts, including housing. With $29.2 million in federal funds, New = York could=20 proceed to construction within 180 days on eighty projects.Broadband=20 Infrastructure
In this information = age,=20 universal access to broadband is essential to our nation=92s ability to = maintain=20 its global competitiveness. In New York, we have 17 broadband projects, = totaling=20 $88.6 million, which will help New York reach its long-term goal of = ensuring=20 every New Yorker has access to affordable high-speed broadband. Of these = projects, nine, totaling $8.5 million, can be completed in 180 days. = These=20 include projects to light up dark fiber across the State and = county-level=20 private/public partnership projects.Health Information = Technology=20 (IT)
To deliver safe, = effective, high=20 quality and affordable health care in the 21st century, strategic = adoption of an=20 interoperable health IT infrastructure is needed to transform today=92s = largely=20 paper-based system into an electronic, interconnected health care = system. We=20 must focus on utilizing technology to promote the improvement of health = care=20 delivery. New York is uniquely qualified to invest in health IT = infrastructure=20 thanks to the policy and technical blueprint established over the past = 18 months=20 using a public-private sector collaborative model. The blueprint = includes a=20 detailed set of information policies and standards governing health IT=20 infrastructure, including privacy and security policies, which must be = built=20 up-front to support the technology, as well as a statewide governance = process,=20 managed by the New York e-Health Collaborative, to ensure implementation = of and=20 accountability for all current and future policies and = standards.As a leader in = Graduate Medical=20 Education (GME) and home to some of the most sophisticated Academic = Medical=20 Centers, New York is at the forefront in training the nation's next = generation=20 of physicians. The State is also working to integrate health IT policy = into its=20 programs and regulatory framework as an underpinning to many health = reforms in=20 an effort to ensure that health IT infrastructure advances in the = public's=20 interest and is sustainable over time.With seven health IT = projects=20 that are =93ready to go,=94 New York estimates that we are ready to = obligate in=20 excess of $300 million within 180 days to implement a plan for health=20 information exchange and $1 billion for provider electronic health = records. A=20 national investment of $20 billion is necessary to implement qualified = statewide=20 programs and to promote the adoption of electronic health records by = physicians=20 and hospitals.
III. Energy = Efficiency, Clean=20 Energy =93Green=94 Jobs & Energy Infrastructure Investment
I was encouraged to = hear that=20 your administration plans to spend $150 billion over a 10-year period = for clean=20 energy technologies, which would generate upwards of 5 million new jobs. = New=20 York State already has aggressive goals for expanding energy efficiency = and=20 renewable energy development, including an additional $1.4 billion in=20 =93ready-to-go=94 projects related to these goals. Investing in clean = energy=20 technologies through existing state programs will provide an immediate = influx of=20 funding to support further development of the states=92 clean energy=20 economies.
Energy Efficiency = &=20 Renewable Energy InvestmentsA substantial, = longer-term=20 federal investment in existing state energy efficiency and renewable = energy=20 programs can both create jobs and advance your new national =93green=94 = strategy to=20 reduce energy consumption, provide greater energy security, curb the = emissions=20 of pollutants and carbon dioxide, and foster growth and economic = development.=20 New York State=92s existing program infrastructure includes:    * = New York=20 Power Authority (NYPA) Energy Services Program: Federal block grants to = enable=20 schools and local governments to implement the best energy efficiency = and=20 renewable energy investments would be a good complement to the existing=20 financing offered by NYPA. Such investments are a great public example = of the=20 power of clean energy and provide financial relief to state and local=20 governments. NYPA has identified 23 school efficiency retrofit projects = totaling=20 $29.8 million that have already started the design phase and could = commence=20 construction within 24 months with $7.5 million in federal funding. An=20 additional 175 public building retrofit projects totaling $630 million = could=20 begin construction within 24 months with $158 million in federal=20 funding.
    * = New York=20 State Energy Research and Development Authority Programs: NYSERDA = administers=20 several programs to encourage energy efficiency retrofits in the = residential and=20 commercial buildings sectors. Federal funding would allow the State=92s=20 oversubscribed programs to expand rapidly. With $168 million, the State = could=20 bring significant new Combined Heat and Power capacity on line in the = next 24=20 months, continue NYSERDA=92s energy efficiency programs for new and = existing=20 multifamily units through the end of 2009 and deploy energy efficiency = controls=20 to mass transit within 180 days.    * = Advanced=20 Metering Infrastructure Projects: Advanced Metering Infrastructure (AMI) = systems=20 offer tremendous promise to empower customers with information that will = help=20 them conserve energy and use energy more efficiently. If electricity is = priced=20 to reflect its true cost in each hour, customers will reduce their = energy=20 consumption during peak demand, which could reduce the need for peaking = power=20 generation and its air pollution impacts, as well as help lower = electricity=20 prices for all customers. Two projects totaling $311 million in New York = State=20 could commence within 24 months with $286 million in federal = dollars.    * = Division of=20 Housing and Community Renewal=92s Weatherization Assistance Program: = DHCR is=20 responsible for the supervision, maintenance, and development of = affordable low-=20 and moderate-income housing in New York. As part of this effort, DHCR=20 administers the Weatherization Assistance Program (WAP), a = federally-funded=20 program that provides residential energy conservation services to = lower-income=20 households. In 2007, DHCR installed energy efficiency measures in 13,987 = units.=20 There are 1 million households eligible for this program in New York, = and DHCR=20 could significantly expand the reach of the program with additional = federal=20 funding.
    * = New York=20 State Renewable Energy Programs: In addition to extending the programs = the=20 federal government already offers, like the federal production tax = credit, it=20 should provide additional funding for renewable energy incentives. New = York=92s=20 existing Renewable Portfolio Standard (RPS) provides financial = incentives on a=20 competitive basis for renewable energy projects, which has led to more = than 30=20 large-scale projects to date. The State could build on that success with = $650=20 million to provide incentives that would spur private investment of more = than $2=20 billion, create job opportunities in rural communities, bring solar = power to=20 communities and reduce electric bills for ratepayers.Clean Energy = =93Green=94 Workforce=20 Training

A national =93green = economy=94 will=20 require an expanded workforce. In New York, an estimated 50,000 new jobs = will be=20 required to meet our aggressive clean energy agenda. New York has an = active=20 clean energy workforce training program in place in cooperation with = State=20 universities and community colleges to provide opportunities for = underemployed=20 and displaced workers to fill these jobs. By injection $3 million into = existing=20 programs, a federally-funded, state-administered, clean energy workforce = development and training initiative can begin immediately.Energy Transmission=20 Infrastructure
Many rural areas of = the nation=20 have no natural gas infrastructure. We have identified a natural gas=20 infrastructure expansion project to service Franklin County, New York. = Building=20 a pipeline to serve this region would provide residents with access to a = cleaner=20 burning and more cost-effective fuel source. To date, approximately $3 = million=20 in state and local funds have been earmarked for the project, but there = remains=20 a financing gap of about $3.7 million. Federal investment in this type = of=20 infrastructure would help projects like this move forward quickly and = help=20 retain key employers in rural areas of our state and the = nation.Diesel Emission = Reductions and=20 Retrofits
Injecting federal = dollars into=20 states=92 efforts to reduce diesel emissions would both create jobs and = provide=20 significant public health benefits for New Yorkers. Several examples of = diesel=20 emission reduction programs in New York are identified below:    * = Retrofit of=20 State-Owned Diesel Vehicles: New York=92s state agencies and authorities = own an=20 estimated 30,000 heavy-duty diesel vehicles. Depending on the ultimate = reduction=20 strategy for each vehicle, the total retrofit could cost $100 million. = In New=20 York, federal funds could be used quickly by the State for retrofits to = commence=20 immediately.
    * = Transit Bus=20 Program: While most of New York=92s transit bus fleet has been = retrofitted and/or=20 replaced with buses using the newest, cleanest technologies, there are = still=20 approximately 600 transit buses using older, conventional diesel = engines. A=20 federal investment of $6 million is needed to retrofit these remaining=20 buses.
    * = Clean Air=20 School Bus Program: NYSERDA=92s Clean Air School Bus Program provides = funding to=20 school districts to reduce emissions from their school bus fleets. = Retrofit=20 technologies can quickly be applied to school buses to address the = harmful=20 effects of diesel emissions through idling reduction, oxidation = catalysts, and=20 particulate traps. Schools are interested in retrofitting their buses, = but do=20 not have the funds available to do so. An additional $5 million could be = used to=20 retrofit approximately 2,000 buses from the existing fleet within 24=20 months.M

Energy Research and = Development=20 Infrastructure
To keep the United = States=20 competitive in the field of energy research and devlopment, the federal=20 government needs to strategically invest in research facilities. At New = York=20 State=92s Saratoga Technology and Energy Park, the NYS Department of = Environmental=20 Conservation plans to build an Alternative Fuel Vehicle Research Lab = (AFVRL).=20 The $50 million AFVRL project will be a world-class test and research = facility=20 that focuses on the research and development of alternative fuels, = propulsion=20 systems, new vehicle technologies, and other greenhouse gas reduction=20 technologies. This lab will be one of the only facilities in the nation=20 conducting this type of work, $38 million in federal dollars would allow = the=20 project to commence within 24 months.* * *Thank you for seeking = input from=20 the states regarding the economic recovery package. I look forward to = working=20 with you and your administration to implement this package quickly.=20 Together--demonstrating the =93leadership of frankness and vigor=94 = Franklin Delano=20 Roosevelt spoke of many years ago--we can overcome the current economic = crisis=20 and lead both New York and the United States toward a brighter = future.Sincerely,David A. = Paterson=20