California Truck Parts Manufacturer Sinister Diesel Agrees to Pay $1 Million After Pleading Guilty to Conspiracy and for Manufacturing and Selling Illegal Defeat Devices

 

Diesel performance parts manufacturer Sinister Mfg. Company, Inc. – doing business as “Sinister Diesel” – pleaded guilty to criminal charges today in federal court in Sacramento, California, and agreed to pay a total of $1 million in criminal fines and civil penalties. The company also agreed to implement a compliance program and to not manufacture, sell or install any device that defeats a vehicle’s emissions controls.

A photo of a truck “rolling coal” that Sinister posted to its Facebook page titled: “Get Serious.  Get Sinister.” (Image from U.S. v. Sinister Mfg. Company, Inc., Case no. 2:23-CR-168 JAM Plea Agreement, Exhibit A)

Sinister Diesel pleaded guilty to a two-count Information, charging it with conspiracy to violate the Clean Air Act (CAA) and defraud the United States, and with violating the CAA by tampering with the monitoring device of an emissions control system of a diesel truck. Under the plea agreement, the defendant agrees to pay a $500,000 criminal fine.

Sinister must pay an additional $500,000 under the civil consent decree which the United States filed simultaneously with its civil complaint against Sinister, alleging violations of the CAA’s prohibition against the sale or manufacture of devices that bypass, defeat or render inoperative emissions controls. The civil consent decree prohibits the company from making, selling or offering to sell defeat products, including delete tuners, and prevents Sinister Diesel from transferring intellectual property that would allow others to make such products. To ensure compliance with these requirements, Sinister Diesel will implement a robust internal training program and notify its distributors and former customers about the settlement.

“Businesses that manufacture and sell illegal devices to defeat a vehicle’s emissions controls foster pollution and risk decades of progress in curtailing harmful emissions from motor vehicles in this country,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “The plea agreement and civil settlement show that we will take strong action to enforce the Clean Air Act and ensure that emissions control requirements for cars and trucks are being followed.” 

“Sinister Diesel sold products that allowed drivers to strip the emissions controls from their trucks, causing a dramatic increase in the release of pollutants that worsen air quality and harm the quality of life,” said U.S. Attorney Phillip A. Talbert for the Eastern District of California. “Environmental laws that control diesel pollution are especially important to protect sensitive populations such as the young, the elderly and people who suffer from respiratory conditions.   My Office will continue to vigorously prosecute those who place profit above the public’s health and the environment.”

“For close to ten years, Sinister Diesel sold parts designed to override or disable the emissions control systems on trucks,” said Principal Deputy Assistant Administrator Larry Starfield for the Environmental Protection Agency’s (EPA) Office of Enforcement and Compliance Assurance. “EPA testing has shown that a vehicle altered with these parts can emit more than 100 times the amount of certain harmful air pollutants, compared to a vehicle with an intact emissions control system. This case shows that we will aggressively prosecute those who manufacture and sell devices designed to defeat vehicle emissions controls.”

According to court documents, Sinister Diesel – from its 2010 incorporation to April 2020 – manufactured and sold parts intended to be installed on motor vehicles, particularly diesel trucks, to enable “deleting” the trucks by removing or disabling the trucks’ emissions control systems. Various products, referred to as “delete devices” or “defeat devices,” are used in the process of “deleting” a vehicle. Sinister often sold its products as part of “delete kits,” sometimes bundled with “delete tunes.” The delete tunes were software produced by another company which could alter a diesel truck’s on-board computer to allow a truck with its emissions controls “deleted” to appear to run normally. 

Through its employees, Sinister Diesel reached agreements with other companies that manufactured tuners or tuning platforms to sell their products bundled together. Sinister would often advise customers on other needed parts for their deleted vehicles to run properly with Sinister’s delete kits — such as a tuner or tuning platform and delete tunes — and sell them those products, too. Sinister also counseled customers on how to evade state emissions tests.

Though Sinister sometimes labeled its delete products for “racing” and included disclaimers in marketing materials indicating that its products should be used only in off-road settings, the company knew most of its delete products were purchased by diesel truck drivers who used those products on public roads, not racetracks. At times, approximately 25% of Sinister’s gross revenue stemmed from its delete products. According to Sinister’s sales statistics, between October 30, 2015, and July 17, 2017, it sold 39,792 defeat devices, including at least 35,960 kits that disable vehicles’ exhaust gas recirculation systems.

Deleting a diesel truck causes its emissions to increase dramatically. For example, for a fully deleted truck with all emissions equipment removed, EPA testing has quantified the increased emissions as follows: Nitrogen oxides increased 310 times, non-methane hydrocarbons increased 1,400 times, carbon monoxide increased 120 times and particulate matter increased 40 times. EPA’s Air Enforcement Division released a report in November 2020 finding that more than 500,000 diesel pickup trucks in the United States – approximately 15% of U.S. diesel trucks that were originally certified with emissions controls – have been illegally deleted. 

Diesel emissions contain multiple hazardous compounds and harm human health and the environment. Diesel emissions have been found to cause and worsen respiratory ailments such as asthma and lung cancer. One study found that 21,000 American deaths annually are attributable to diesel particulate matter. Additionally, exposure to polluted air in utero has been associated with a host of problems with lifelong ramifications including low birth weight, preterm birth, autism, asthma and brain and memory disorders.  

The defendant is scheduled to be sentenced in the criminal case by U.S. District Court Judge John A. Mendez for the Eastern District of California on November 14, 2023. Though Sinister Diesel agreed to pay a $500,000 criminal fine under its plea agreement, the company faces – for each count – a maximum fine of $500,000 or twice the gross pecuniary gain derived from the offense. Its sentence will be determined at the discretion of the court after consideration of all applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.  

The criminal case was the product of an investigation by the EPA’s Criminal Investigation Division, with assistance from the Federal Bureau of Investigation’s Sacramento Field Office. Assistant United States Attorney Katherine T. Lydon of the Eastern District of California and Senior Counsel Krishna S. Dighe and Trial Attorney Stephen J. Foster of the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division (ENRD) are prosecuting the criminal case. The federal civil case is being handled by Senior Attorney Eric Albert and Senior Counsel Joanna Day of the Environmental Enforcement Section of ENRD, Attorney Advisor David H. Kim of EPA’s Region 9 office, and Janice Chan of the EPA’s Region 9 office.

Stopping the manufacture, sale, and installation of illegal delete devices is a priority for EPA. To learn more, visit: www.epa.gov/enforcement/national-compliance-initiative-stopping-aftermarket-defeat-devices-vehicles-and-engines. To learn more about EPA’s criminal enforcement actions on defeat devices, visit www.epa.gov/enforcement/criminal-press-releases-2023. and https://www.epa.gov/enforcement/criminal-press-releases-2022.

The consent decree for this settlement, lodged today in the U.S. District Court for the Eastern District of California, is subject to a 30-day public comment period and approval by the court. A copy of the consent decree and information on submitting comments will be available on the Department of Justice website at: www.justice.gov/enrd/consent-decrees. 

BRONX MAN SENTENCED TO 25 YEARS TO LIFE IN PRISON FOR SHOOTING AND KILLING HIS WIFE AND STEPSON IN 2016

 

Defendant Was Convicted by Jury of First-Degree Murder

 Bronx District Attorney Darcel D. Clark today announced that a Bronx man has been sentenced to 25 years to life in prison for fatally shooting his wife and stepson in their Claremont apartment in 2016. 

 District Attorney Clark said, “The defendant callously shot and killed his wife and stepson inside the apartment they shared while each were lying in their beds. He then went to the stove and turned all the gas burners, releasing gas into the apartment in the hopes an explosion would cover up his actions. These were cold-blooded murders, and now he has been sentenced to 25 years to life in prison for killing his family.”  

 District Attorney Clark said the defendant, Antonio Robinson, 56, last of 1763 Fulton Avenue, was sentenced today by Bronx Supreme Court Justice Jeanette Rodriguez-Morick to 25 years to life in prison. On November 1, 2022, the defendant was found guilty after a jury trial of one count of first-degree Murder for killing more than one person in a single act. 

 According to the investigation, on October 1, 2016 at approximately 3:00 p.m., the defendant went to the room of Tyrone Bell, 27, who was watching television and eating snacks. The defendant shot Bell twice in the face, causing his death. The defendant then went to the other bedroom where Sharon Epps, 50, was resting and shot her in the head, neck and torso, causing her death. After shooting the victims, the defendant attempted to conceal the homicides by opening the gas jets. The defendant left the home and returned after four hours. Noticing that the gas leak did not cause a fire, the defendant ran to the neighbors’ apartment and said he found his wife and stepson dead. The Fire Department arrived for the gas leak, then police came and arrested the defendant.

 District Attorney Clark thanked NYPD Detective Carlos Lozada of the 42nd Precinct, NYPD Detective Sean O’Leary of Bronx Homicide, and FDNY Lieutenant Daniel Harrington, FDNY Firefighter Kevin McGookin and FDNY Firefighter Michael Bolnik for their work in the investigation.

THE NEW YORK STATE DEPARTMENT OF LABOR ANNOUNCES $113,000 WAGE RECOVERY FOR HOME HEALTH CARE EMPLOYEES

 

Home Care Aides Denied Sleep Time as Required by Law, Receive Settlements for Owed Wages

NYSDOL Investigating Over 50 Home Health Care Agencies

The New York State Department of Labor today announced two settlements following investigations into employers underpaying home care employees. The two cases, which involved employers in Brooklyn and Staten Island, resulted in settlements totaling $113,800 for two home care workers who were denied adequate sleep time during 24-hour shifts and underpaid for hours worked. NYSDOL’s Division of Worker Protection is currently investigating over 50 home health care agencies involving potential wage and hour violations for home health care aides.

“Home care aides are a critical part of our health care system,” said New York State Department of Labor Commissioner Roberta Reardon. “These dedicated professionals often work long hours, including 24-hour shifts, to care for aging or ailing New Yorkers. Rest is essential in ensuring that they have the energy and focus to safely perform their duties. If that rest is disrupted, employers must ensure these home health care employees are appropriately compensated in accordance with the law.”

The first case involved a home care aide employed by Preferred Home Care of New York, based in Brooklyn. NYSDOL investigators determined that from March 2014 to June of 2020, the employee worked 24-hour shifts and did not receive adequate sleep time. NYSDOL secured a $95,000 settlement to compensate the employee for hours worked, including overtime. The second case involved a home care aide employed by GM Family Resources Inc. in Staten Island. The employee worked three 24-hour shifts each week over a six-month period from 2020 to 2021. NYSDOL secured an $18,800 settlement for to compensate the aide for hours worked when they failed to receive uninterrupted sleep during their shift.

Employers are required to pay home care aides 13 hours for each 24-hour shift they are assigned. Under state law, an employee must receive at least three hours of break time and eight hours of sleep time, five of which must be uninterrupted. NYSDOL encourages home health care employers to review their policies and practices to ensure full compliance with the law. NYSDOL may accept these types of cases if an employee is not covered by an arbitration clause or is not involved in a separate action against their employer.

Over the past decade, NYSDOL has recovered and dispersed more than $360 million in owed wages and identified over a million misclassified workers. The Department is also the lead agency in Governor Hochul’s Wage Theft Task Force, a collaborative interagency effort to crack down on wage theft. New Yorkers can call  833-910-4378 to report wage theft. Victims can also email labor.sm.ls.ask@labor.ny.gov for assistance. For more information unpaid wages, visit the Division of Labor Standards webpage.

MAYOR ADAMS, NYCHA KICK OFF PROCESS TO UNLOCK BILLIONS FOR NYCHA REPAIRS WITH GROUNDBREAKING FIRST RESIDENT VOTE FOR PUBLIC HOUSING PRESERVATION TRUST AT NOSTRAND HOUSES

 

Home to More Than 2,000 Residents, Nostrand Houses Needs More Than $600 Million in Repairs Over 20 Years

As NYCHA Buildings Need $80 Billion in Repairs, Vote Represents Major Step Towards Unlocking Billions of Dollars to Repair Homes for NYCHA Residents Through Trust

New York City Mayor Eric Adams and New York City Housing Authority (NYCHA) CEO Lisa Bova-Hiatt today took a major step towards unlocking billions of dollars for comprehensive renovations for thousands of NYCHA residents — kicking off the resident engagement process for the first resident vote for the Public Housing Preservation Trust. The first resident vote will take place at Nostrand Houses in Sheepshead Bay, Brooklyn starting this November. Nostrand has more than $600 million in 20-year capital needs and ranks in the 80^th percentile of NYCHA buildings for immediate physical needs, and its selection follows conversations with resident leaders. With NYCHA buildings needing nearly $80 billion, this process will offer residents an opportunity to vote and determine the future of their development. Options include entering the Trust or joining the Permanent Affordability Commitment Together (PACT) program — both of which leverage alternative streams of funding available through the federal government — or residents can chose to maintain the traditional public housing financing model, which would make it more difficult to expedite major capital repairs.

The Public Housing Preservation Trust is a public entity established by Mayor Adams and NYCHA in May 2023 and authorized by a law signed by New York Governor Kathy Hochul last year following extensive advocacy from the Adams administration and NYCHA. Under the Trust, residents will always maintain their rights — including permanently affordable rent and keeping NYCHA properties 100 percent public. The voting process is the first of its kind to empower public housing residents to have a direct vote in the future of their homes — beginning with the 2,191 residents in 1,148 apartments across 16 buildings at Nostrand Houses.

“Every revolution has to start somewhere, and our housing revolution is going to start at Nostrand Houses in Sheepshead Bay,” said Mayor Adams. “After decades of neglect and disinvestment by the federal government, the NYCHA Trust is the tool we need to unlock billions of dollars for public housing families across the five boroughs. Just over one year ago, I stood with residents of Nostrand Houses to celebrate our success in getting the Trust passed in Albany, and, today, we are announcing that they will have the first opportunity to vote to have their homes repaired through the Trust. Nobody worked harder to help us get the NYCHA Trust passed than these residents — they delivered for us, and this is our chance to deliver for them.”

“This administration believes in empowering residents to be a part of the transformative change that needs to happen across NYCHA,” said First Deputy Mayor Sheena Wright. “With this historic vote, Nostrand Houses residents have the ability to unlock billions for long overdue repairs and renovations. For too long, NYCHA residents have been denied the quality housing they deserve. Together, in partnership with residents, the Adams administration is determined to deliver funding to provide the capital investments NYCHA residents need and deserve.”

“Our administration is committed to improving the lives of NYCHA residents. Establishing the Trust in May was a major step in that direction, but now the resident engagement process truly begins,” said Deputy Mayor for Housing, Economic Development, and Workforce Maria Torres-Springer. “The residents of Nostrand Houses are in a historic moment where they are empowered through their vote to determine the future of their homes. Over the next 100 days, NYCHA will thoroughly engage the residents on the Preservation Trust program before they vote on whether to opt into the Trust. This resident-driven model is testament to our administration’s approach to finally solving NYCHA’s historic challenges.”

“This is a historic day for NYCHA, as we embark on the voting process at the very first development, giving the residents of Nostrand Houses a true voice in the future of their home,” said NYCHA CEO Bova-Hiatt. “This milestone is a testament to the many partners who understand the vast and compelling needs of NYCHA and the New Yorkers who live in public housing. We are thrilled to join residents on this journey and to present them with modernization options, including the newly established Public Housing Preservation Trust, for improving conditions and contributing to an enhanced quality of life.”

“The first vote on the Trust presents an exciting opportunity to restore and improve New York City’s public housing stock, while ensuring the voices of NYCHA residents remain at the center of the process,” said New York City Housing Development Corporation President Eric Enderlin. “Congratulations to all our partners and the NYCHA residents involved in the rollout of this important entity. We look forward to continuing in our shared efforts to transform the quality of life for public housing residents across New York City.”

“As the tenant association president of Nostrand Houses, I believe in providing all residents with the opportunity and information they need to make an informed decision about what should happen at our development,” said Barbara McFadden, president, Nostrand Houses Tenant Association; vice chair, NYCHA Citywide Council of Presidents; and resident at-large, Public Housing Preservation Trust Board. “In my role as a resident leader, I am passionate about making our housing the best it can be. I feel strongly about preserving it for the generations to come, and that is why I am so proud that Nostrand Houses is at the beginning of this history-making process.”

“After spending my entire career at NYCHA, I have seen firsthand the repairs and infrastructure upgrades that developments need,” said Pamela Campbell, labor union representative, Public Housing Preservation Trust Board. “Through this vote, not only will NYCHA receive the needed funding, but for the first time, residents will be at the forefront of the process, and their voices will be heard. I am excited to witness this monumental milestone and will continue to support the residents of Nostrand Houses.”

A fully public entity, the Public Housing Preservation Trust is expected to unlock billions of dollars in federal funding for much-needed, comprehensive renovations at NYCHA developments to improve living conditions for residents. Before the voting period begins, NYCHA engages resident leaders and issues a “Notice of Vote” to residents of the selected development, which includes an explanation of the purpose of the vote; the options available on the ballot; the dates, times, and locations of planned outreach meetings; access to supplementary materials; opportunities to submit questions and written comments; voting information; and more. After the notice is issued, a 100-day engagement period begins to allow for information sharing before a 30-day resident voting period.

Residents can vote online or by mail throughout the voting period, and in-person voting is available during the final 10-days of the voting period. Any resident on the household composition who is 18 years of age or older is eligible to vote. An independent, third-party election administrator will oversee the process — conducting the vote, receiving and investing any allegations of irregularities or misconduct, and certifying the vote results.

The 30-day voting period will begin on November 8, 2023, after the notice was issued this past Thursday, July 27, 2023. Once the 30-day voting period has ended, votes will be tallied and announced. No development will move forward as part of the Trust without a vote from residents to do so.

The start of the voting engagement period at Nostrand follows months of work to authorize and establish the Public Housing Preservation Trust. Since Governor Hochul signed the law allowing the creation of Trust in June 2022, Mayor Adams and NYCHA have taken a series of steps to establish the entity and prepare for the first resident votes — including releasing the official voting procedures, which were finalized after receiving more than 300 comments from members of the public last fall. Based on feedback received in that process, NYCHA incorporated changes into the final procedures, including extending the voting period from 21 to 30 days, clarifying the information provided to residents ahead of a vote, and doubling the minimum voter participation rate to 20 percent of heads of household.

Additionally, Mayor Adams and NYCHA jointly established the Board of the Trust in May, announcing the first six appointments, with a seventh appointment announced earlier this month. The first Trust board meeting also took place in July.

“When Governor Hochul signed the Preservation Trust into law a little more than a year ago, the Community Service Society recognized that New York City was embarking on a historic undertaking. Written into the legislation was the most expansive experiment in resident democracy ever attempted in the United States and a chance to address the conditions brought about by decades of federal divestment in public housing — while still keeping it public,” said David R. Jones, president and CEO, Community Service Society (CSS). “CSS has been and will continue to work with residents and advocates to ensure that the Trust in its implementation is as strong as the words that chartered it. We commend NYCHA on advancing this endeavor with expediency that matches the seriousness of the situation facing residents. We also congratulate Nostrand Houses residents and their tenant association on a day that marks an immense opportunity for them and for us all to show the country the result of investing in our communities and believing in a future for public housing.”

“Today is an historic day for residents of NYCHA’s Nostrand Houses with the start of the voter outreach process to learn about the different options for the future of their homes,” said Lucy Newman, staff attorney, civil law reform unit, Legal Aid Society. “We were proud to work with the city, Albany lawmakers, residents, and so many others to secure passage of the New York City Public Housing Preservation Trust to keep public housing publicly owned and operated while empowering residents as the key decision makers. The Legal Aid Society will continue to work with residents and NYCHA as this process moves along.”

Clinical Laboratory and Its Owner Agree to Pay an Additional $5.7 Million to Resolve Outstanding Judgement for Billing Medicare for Inflated Mileage-Based Lab Technician Travel Allowance Fees

 

BestCare Laboratory Services LLC (BestCare), a now defunct Texas-based company that operated as a clinical laboratory, and its owner and founder, Karim A. Maghareh, have agreed to pay an additional $5.7 million to settle an outstanding False Claims Act judgment against them. The judgment was entered in 2018 after a court found that BestCare knowingly submitted false claims to Medicare, as directed by Maghareh, by billing for travel allowance reimbursements that did not reflect the mileage that lab technicians had actually traveled when they collected specimens from nursing home residents in Texas. 

The settlement announced today is designed to resolve BestCare and Maghareh’s outstanding obligation under the 2018 judgment. The settlement provides for payments totaling $5.7 million and the possibility of additional annual payments for five years based on Maghareh’s future income. These payments are in addition to $789,652 that the United States has already collected since 2018. The settlement amount is based on the Justice Department's ability-to-pay policy.

The original lawsuit was filed in 2008 by Richard Drummond under the qui tam, or whistleblower, provisions of the False Claims Act. The qui tam provisions allow private parties, called “relators,” to sue on behalf of the United States individuals or companies they believe have knowingly submitted false claims for government funds. Relators are entitled to receive 15 to 25 percent of any recovery if the United States intervenes in the suit, as it did here in 2011. As part of this settlement, the relator will receive $1,311,000.

“Health care providers that submit inflated reimbursement claims to Medicare waste funds intended to ensure access to vital medical services,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s settlement demonstrates the department’s resolve to ensure that those who defraud the taxpayers are held accountable.”

“When the greedy manipulate the Medicare system, it affects us all, especially the elderly,” said U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas. “It’s a waste of resources meant to help those in need. This fraudulent scheme adversely impacted our healthcare system because of the inflated costs associated with transporting lab samples. This settlement brings to bear some economic justice, by requiring those that orchestrated the fraudulent scheme to pay for their actions.”

This settlement illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).

The resolution obtained in this matter was the result of a coordinated effort among the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section; the U.S. Attorney’s Office for the Southern District of Texas, Affirmative Civil Enforcement Section; and the Department of Health and Human Services, Office of Inspector General. The settlement was handled by Fraud Section Senior Trial Counsel Andrew A. Steinberg and Assistant U.S. Attorney Elizabeth Karpati for the Southern District of Texas.

Governor Hochul Announces Significant Federal Assistance to Reduce Clean-Energy Costs for New Yorkers

Inflation Reduction Act Helps Support Nuclear Power in New York State

New Yorkers Receive Hundreds of Millions of Dollars of Cost Savings

 Governor Kathy Hochul today announced that thanks to the Inflation Reduction Act, millions of New Yorkers will see a reduction in utility bills. The IRA funding will help support New York’s nuclear power plants to deliver zero emissions electricity for New Yorkers. The federal nuclear production tax credit, passed by Congress and signed by President Biden as part of the IRA, will provide significant financial support to the four operating nuclear reactors in New York and thereby reduce future payments by New York electric ratepayers to these facilities.

“The Inflation Reduction Act has been critical to helping New Yorkers lower utility costs, while also helping the state reduce emissions and confront the global challenge of climate change,” Governor Hochul said. “We appreciate the strong partnership with President Biden, his Administration and New York’s Democratic Congressional Delegation to advance a more affordable and more livable New York through energy affordability and zero emissions electricity.”

The goals and policies of the IRA support initiatives and strategies previously established by the State of New York over the last decade. In 2016, in recognition of the adverse effects of climate change on public health, the environment, and the economy, the New York State Public Service Commission implemented the Clean Energy Standard (CES), a first-in-the-nation program to prescribe carbon reduction mandates for electricity production in New York. In 2019, the State enacted the Climate Leadership and Community Protection Act or Climate Act, a groundbreaking climate change statute addressing carbon emissions. The Climate Act seeks to reduce statewide greenhouse gas emissions 40 percent by 2030, and no less than 85 percent by 2050, from 1990 levels. The Climate Act also requires that the State’s electric grid be 100 percent zero-emission by 2040.

Chair of the Public Service Commission Rory M. Christian said, “I applaud President Biden, Governor Hochul and the U.S. Congress for their efforts to ensure the Inflation Reduction Act will support the continued operation of significant measures to address climate change. Most importantly, with the PTC action, the potential impact on consumers in states that have acted proactively to combat climate change should be addressed by recognizing the value of the environmental attributes associated with greenhouse gas-free generation of electricity at nuclear facilities.”

In August 2016, following a full administrative proceeding, the PSC created the New York Zero Emission Credit (ZEC) Requirement to preserve nuclear zero-emissions attributes. To implement the ZEC Requirement, the PSC authorized the New York State Energy Research and Development Authority (NYSERDA) to enter into multiyear contracts to purchase ZECs from qualifying nuclear facilities that demonstrated public necessity. Four nuclear powered reactors — Ginna, Fitzpatrick, and Nine Mile Point Unit 1 and 2 — were confirmed by the PSC as meeting the public necessity standard. ZEC contracts were entered into with NYSERDA on account of each plant’s verifiable historic clean energy contributions, insufficient market revenues expected by each plant, benefits and costs of ZECs compared to other clean energy alternatives, and the ratepayer impact of ZEC payments.

When it initiated the ZEC program, the PSC also recognized that the program could be adjusted in the future if the federal government later provided financial support for nuclear power facilities. The recently enacted federal production tax credit now provides such support.

The ZEC contract for each plant is administered in six two-year phases, with the first phase having started on April 1, 2017. The ZEC price in each phase is established by a base ZEC price that reflects the Federal government’s social cost of carbon, which may be adjusted downward and occurred with the start of fourth phase on April 1, 2023.

The ZEC contracts expressly provide that ZEC payments would be adjusted for a change in law that materially changes the original economic benefits of the contract, such as a federal tax credit aimed at nuclear production like the IRA production tax credit (PTC). When Constellation begins claiming the federal PTC reflecting its ownership in the upstate New York nuclear generation units on its corporate tax return in 2025 for tax year 2024, the PTC will be used to reduce the ZEC payments. The PTC will reduce the costs to New York electricity customers, potentially resulting in hundreds of millions of dollars in savings, as early as 2025.

Constellation Energy owns or controls the four operating nuclear power reactors in New York State located at the Ginna, Fitzpatrick, and Nine Mile Units 1 and 2 sites on Lake Ontario.   

MAYOR ADAMS ANNOUNCES SUCCESSFUL ENFORCEMENT ACTION AGAINST FOUR LANDLORDS TO PROTECT CHILDREN FROM LEAD

 

Nearly 3,500 Health and Safety Violations in More Than 5,000 Apartments Already Fixed as Part of Comprehensive Settlement, Providing Safe, High-Quality Homes

 

Agreement Also Includes Nearly $500,000 in Penalties for Violations

New York City Mayor Eric Adams today announced that thousands of health and safety violations in more than 5,000 apartments have been successfully corrected as part of a sweeping agreement between the city and four major property owners and their companies. After finding substantial health and safety violations in these apartments — including hundreds related to lead-based paint — the city over three months in early 2022 entered into comprehensive agreements with their property owners that imposed nearly $500,000 in civil penalties, compelled property owners to resolve all outstanding violations, and forced compliance with Local Law 1 of 2004 — the New York City Childhood Lead Poisoning Prevention Act. Nearly 3,500 violations have already been corrected to date, and all four property owners must continue to demonstrate compliance with health and safety requirements for the next three years.

“Safe, high-quality, affordable housing for New Yorkers has been a north star for this administration, and that’s why we are cracking down on those who are putting our children at risk of lead exposure,” said Mayor Adams. “Because of this settlement, thousands of violations have been fixed, meaningful penalties have been paid, and our city’s apartments are now safer and healthier for our youngest New Yorkers. We are sending a clear message across the entire city: If you are a landlord who doesn’t take your lead paint obligations seriously, we will hold you accountable to the fullest extent of the law.”

“This administration’s housing vision centers on improving the health and safety of New Yorkers, and the city’s pursuit of these settlements is one more sign of our progress in providing New Yorkers with safe housing,” said Deputy Mayor for Housing, Economic Development, and Workforce Maria Torres-Springer. “This historic settlement is also yet more proof that New York City is a leader in preventing lead poisoning and protecting our youngest.”

“Every day, we work to provide individuals, children, and families with pathways to opportunity and act to protect public health. Those two go hand in hand, and the progress announced today builds on the city’s broader strategy to protect every New Yorker from the risks of lead paint,” said Deputy Mayor for Health and Human Services Anne Williams-Isom. “This progress will allow New Yorkers to focus on everyday tasks, like taking their kids to school, working with their colleagues, or visiting friends and family — with the peace of mind that their environments have been evaluated and are safe and healthy. The Adams administration will continue to execute on our plan to protect New Yorkers from the hazards of lead and will hold parties accountable at every step along the way.”

“Although lead-based paint was banned in New York City in 1960, older buildings with peeling paint continue to pose a threat to children in this city,” said City Hall Chief Counsel Brendan McGuire. “This administration is committed to keeping children safe from the health hazards of ingesting lead-based paint. When landlords fail to take required steps to remediate peeling lead paint, this administration will always hold them responsible.”

“People have the right to living spaces free of lead dust and chipping lead paint, especially children who are most vulnerable to this dangerous toxin,” said New York City Corporation Counsel Sylvia Hinds-Radix. “Local law requires that landlords protect their tenants from lead in the home by complying with comprehensive safeguards, such as annual notices to track the presence of young residents, annual inspections for lead-based paint hazards, abatement, and remediation. The Law Department, along with the coalition of city agencies monitoring these landlords, will use every legal tool at its disposal to bring these landlords into compliance.”

“Peeling lead paint in a child’s home creates a well-known risk for their growth and development, and property owners in New York City are responsible for maintaining their buildings to eliminate lead paint exposure,” said New York City Department of Health and Mental Hygiene (DOHMH) Commissioner Dr. Ashwin Vasan. “The city has made great strides in reducing hazards posed by lead-based paint, and we need to make sure property owners continue to take responsibility to protect tenants. Thank you to our sister agencies for sharing our commitment to safeguarding the health and well-being of our children.”

“Today’s announcement sends a clear message that we are committed to protecting children from the dangers of lead exposure. This new cross-agency enforcement strategy strengthens our ongoing efforts to ensure that landlords comply with their responsibility to protect our children,” said New York City Department of Housing Preservation and Development (HPD) Commissioner Adolfo Carrión Jr. “The work of HPD’s inspectors, lead-based paint administrative staff, environmental hazards staff, and housing attorneys set the groundwork for this strong collaboration, and so I thank them all for the work they do every day.”

These agreements with owners of four large portfolios of residential buildings — covering 5,147 apartments in Upper Manhattan and the Bronx — require the owners to promptly bring their properties into compliance with Local Law 1 and other applicable laws and codes, in addition to paying a total of $473,500 in civil penalties for past code violations of Local Law 1. Violations include failure to remediate peeling lead paint, failure to comply with annual notice and annual investigation requirements, failure to abate lead-based paint upon tenant turnover, and failure to comply with recordkeeping requirements.

The following penalties have been paid in full by the landlords:

• Ken Nasab: owns and manages more than 882 apartments, $98,000
• David Kleiner: owns and manages more than 748 apartments, $112,000
• Steven Finkelstein: owns and manages more than 1,043 apartments, $98,000
• Bashkim Celaj: owns and manages more than 2,474 apartments, $165,500

Additionally, every year for the next three years, all four property owners must demonstrate ongoing compliance with all Local Law 1 requirements related to annual and lease notices, annual investigations, remediation and abatement, x-ray fluorescence analyzer testing, apartment turnovers, and turnover remediation.

Should the property owners fail to comply with their agreements, they would face legal action seeking court-ordered repairs and the imposition of as much as tens of millions of dollars in additional penalties.

These enforcement actions build on the Adams administration’s progress in the fight against lead exposure, outlined in the “Taking the Lead on Lead” report released earlier this year. Under the city’s new strategy, the city is investing $1.4 billion in capital funds for lead paint abatement, and the New York City Housing Authority (NYCHA) is testing more than 70,000 apartments under New York City’s new, more protective threshold. For New Yorkers in private homes, HPD has expanded the application of Local Law 1 to include rental units in one- and two-family homes, as well as apartments where children under 6-years-old spend more than 10 hours per week (as opposed to just locations where they reside). The New York City Department of Environmental Protection (DEP) has additionally completed a pilot program to replace 600 privately-owned lead service lines — which connect houses to the city’s water main in the street — for low-income homeowners at no cost to them. Based on that pilot, DEP has submitted federal grant applications for several millions of dollars, which would allow DEP to dramatically expand these free replacements in communities disproportionately impacted by climate change.

Local Law 1 mandates that residential building owners take proactive steps to prevent lead-based paint exposure. Requirements include testing for and abating lead-based paint at unit turnover, annually determining whether and where children under 6-years-old live in a building, and lead-based paint abatement or remediation in units where children under 6-years-old spend at least 10 hours per week. More information about landlord and tenant requirements under Local Law 1 and about how to protect families from lead exposure is available by calling 311 or visiting the city’s Lead Free NYC page.

NYSOFA’s Rollout of AI Companion Robot ElliQ Shows 95% Reduction in Loneliness

 

NYSOFA-ElliQ partnership renews for a second year following validation of ElliQ’s effectiveness in improving the lives of aging New Yorkers

The New York State Office for the Aging (NYSOFA) and Intuition Robotics today announced a continuation of their unique partnership and new data showing the efficacy in providing AI companionship to older adults in New York State, including a 95% reduction in loneliness and high levels of engagement. 

Over the past year, NYSOFA has partnered with Intuition Robotics in a pilot to bring ElliQ – the first-ever proactive and empathetic AI companion – to more than 800 New Yorkers in an effort to combat loneliness, foster engagement, improve overall health and wellness, and support aging-in-place. Loneliness has long been a concern for older adults, but the COVID-19 pandemic greatly exacerbated the issue, as the U.S. Surgeon General recently stressed in a highly publicized advisory on the epidemic of loneliness and isolation.

According to data reports from the NYSOFA pilot, AI companion ElliQ has achieved a 95% reduction in loneliness and great improvement in well-being among older adults using the platform. ElliQ users throughout New York have also demonstrated exceptionally high levels of engagement consistently over time, interacting with their ElliQ over 30 times per day, 6 days a week. More than 75% of these interactions are related to improving the older adults’ social, physical and mental well-being. 

In one example, Lucinda, an older adult in Harlem, participates in four activities with ElliQ per day on average, including stress reduction exercises twice daily and a cognitive game every day. She also works out with ElliQ once a week. To learn more about these and other outcomes, see the attached report.

ElliQ is proactive and personalized: it initiates conversation, suggests activities, and remembers what users tell it. ElliQ encourages and works with users to set and help achieve goals. It is designed to convey empathy to create trust and drive engagement and behavior change. 

Over the past year, Intuition Robotics has added unique features to keep seniors active, connected and engaged, such as: ElliQ taking users to museum exhibits and road trips, painting with ElliQ using generative AI, mindfulness exercises led by a certified mindfulness instructor, recording life memories in a digital memoir and sharing them with family and friends, and the ability for the NYSOFA staff to send informational video messages about available resources.

In one example, Lucinda, an older adult in Harlem, participates in four activities with ElliQ per day on average, including stress reduction exercises twice daily and a cognitive game every day. She also works out with ElliQ once a week. To learn more about these and other outcomes, see the attached report.

“We had high hopes for the efficacy of ElliQ, but the results that we’re seeing are truly exceeding our expectations,” said Greg Olsen, Director of the New York State Office for the Aging. “The data speaks for itself, and the stories that we’re hearing from case managers and clients around the state have been nothing short of unbelievable. To see the impact this technology is making on the lives of our community members is incredibly moving and we can’t wait to see this program continue to grow."

“It has been evident over the course of our pilot program that ElliQ enriches and improves the lives of the older adults we serve,” said Becky Preve, Executive Director of the Association on Aging in New York (AgingNY). “The pandemic encouraged us to open our eyes and think of innovative ways to deliver care to our clients. Partnering with an AI platform like ElliQ fits our strategy perfectly and I’m looking forward to getting ElliQ devices into the homes of many more older New Yorkers."

“It has been a pleasure to work alongside local offices for the aging and partners to identify older adults who would most benefit from empathetic AI,” said Dor Skuler, CEO and Co-Founder of Intuition Robotics. “ElliQ can’t make an impact on individuals until it has been invited into the home, and the case managers and staff on the ground have been integral in educating older adults about ElliQ, supporting installations, and facilitating introductions between our team and the clients directly. We’re excited to continue our work with NYSOFA and other aging agencies to increase the number of aging adults we can help.” 

About the New York State Office for the Aging

NYSOFA continuously works to help the state’s 4.6 million older adults be as independent as possible for as long as possible through advocacy, development and delivery of person-centered, consumer-oriented, and cost-effective policies, programs, and services that support and empower older adults and their families, in partnership with the network of public and private organizations that serve them. Stay connected—visit the NYSOFA Facebook page; follow @NYSAGING on Twitter and NYSAging on Instagram; or visit aging.ny.gov.

About Intuition Robotics

Intuition Robotics, a startup company based in Israel, is on a mission to empower older adults to live happier, healthier, and more independent lives at home. The company’s award-winning product, ElliQ, is a proactive care companion for older adults. ElliQ helps keep users healthy, engaged, and informed, while alleviating the effects of loneliness and social isolation. Intuition Robotics has won several awards for its work with ElliQ including Fast Company’s Most Innovative Companies and the CES Best of Innovation award. To learn more, please visit www.elliq.com and follow us on Facebook.

About the Association on Aging in New York

The Association on Aging in New York supports and advocates for New York’s mostly county-based Area Agencies on Aging (AAAs) and works collaboratively with a network of organizations that exist to promote independence, preserve dignity, and provide support for residents of New York State as they age. For more information, follow us on Facebook, visit www.agingny.org, or call (518) 449-7080.