N.Y. PBH Law § 1167-A

§ 1167-a. Reimbursement of state assistance payments or grants made to\nmunicipality or recipient; admissibility of state assistance payments or\ngrants as collateral source. 1. A municipality or recipient that: (a)\nreceives a state assistance payment/grant from the corporation for an\neligible project to remove contaminants from drinking water or water\nsupplies under this title, including but not limited to state assistance\npayments/grants for removing emerging contaminants; (b) takes legal\naction against a responsible party to recover the costs of such eligible\nproject; and (c) receives payment by judgment, settlement or otherwise\nfrom such responsible party for the costs for such eligible project,\nshall reimburse the corporation the portion of such payment that is in\nexcess of (1) the total cost of the project (including, but not limited\nto, the capital costs and operating and maintenance costs associated\ntherewith for the period during which the contamination is expected to\npersist and require treatment); and (2) the expenses (including, but not\nlimited to, attorneys' fees and litigation costs and expenses) incurred\nby the municipality or recipient pursuing recovery of such costs from\nresponsible parties, provided, however, that the municipality or\nrecipient shall not reimburse more than the amount of such state\nassistance payment/grant for the eligible project.\n 2. Notwithstanding any other provision of law, including section\nforty-five hundred forty-five of the civil practice law and rules,\nevidence of any state assistance payment/grant from the corporation to\nany municipality or recipient shall not be admissible in any action\nbrought by such municipality or recipient against a responsible party to\nrecover the costs for an eligible project and/or the operating and\nmaintenance costs associated therewith, and the court shall not reduce\nthe amount of any award against a responsible party in whole or in part\nbecause of such state assistance payment or grant.\n