Bill S4886-2013

Directs the New York State Energy Research and Development Authority to conduct an analysis of the potential impacts of participation in the Regional Greenhouse Gas Initiative by out of state generators

Directs the New York State Energy Research and Development Authority to conduct an analysis of the potential impacts of participation in the Regional Greenhouse Gas Initiative by out of state generators and also a cost benefit analysis of all of the programs associated with the program as it currently operates.

Details

Actions

  • Jan 8, 2014: REFERRED TO ENERGY AND TELECOMMUNICATIONS
  • Jan 8, 2014: returned to senate
  • Jan 8, 2014: died in assembly
  • May 30, 2013: referred to energy
  • May 29, 2013: DELIVERED TO ASSEMBLY
  • May 29, 2013: PASSED SENATE
  • May 23, 2013: ADVANCED TO THIRD READING
  • May 22, 2013: 2ND REPORT CAL.
  • May 21, 2013: 1ST REPORT CAL.701
  • Apr 30, 2013: REFERRED TO ENERGY AND TELECOMMUNICATIONS

Votes

VOTE: COMMITTEE VOTE: - Energy and Telecommunications - May 21, 2013
Ayes (11): Maziarz, Carlucci, Fuschillo, Griffo, O'Mara, Ritchie, Robach, Parker, Adams, Kennedy, Dilan

Memo

BILL NUMBER:S4886

TITLE OF BILL: An act directing the New York state energy research and development authority to conduct an analysis of the potential impacts of participation in the Regional Greenhouse Gas Initiative by out of state generators

PURPOSE OR GENERAL IDEA OF BILL:

To study the costs and benefits of the state's current programs associated with the regional greenhouse gas initiative and to analyze the feasibility, potential methodology and likely impacts of requiring out of state generators who export power to New York to participate in the program.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1: Requires NYSERDA to issue a request for proposals for interested parties to submit bids to conduct a study on programs associated with the Regional Greenhouse Gas Initiative and lays out the parameters of the study which will include an analysis of the potential impacts of requiring out of state generators who export power to New York to participate in the program and also an examination of the costs and benefits of RGGI programs that are already being implemented.

Section 2: Requires submission of the study upon its completion to the Governor and legislative leaders by March 1, 2014.

JUSTIFICATION:

Governor Pataki, began the process of forming the Regional Greenhouse Gas Initiative in 2003, and carbon auctions have been ongoing since 2008. The money from these programs is derived from the purchase of carbon off-sets by companies who produce emissions, and the money is used to fund several programs, including Green-Jobs Green New York and On-Bill recovery. These programs are laudable and reports are published on them each year, and yet, there is information that is not readily available about the impacts and potential costs of the program as it relates to job creation and potential impacts on ratepayers. This bill will allow an independent third party to study the impacts of the current program and report back to the legislature and the governor about the benefits and potential challenges created by the implementation of the program. The environmental benefits of the program are positive and well-known but it is important to fully understand the net impact on jobs, local tax base and on ratepayers from the implementation of the program thus far.

The study required in the bill also seeks an analysis of expanding the RGGI program to require out of state generators to participate in the carbon credit auction or pay a fee for exporting to the state or some other idea that would allow for a more level playing field. Currently, New York Generators have to pay additional expenses associated with RGGI but generators who export to the state from New Jersey and Pennsylvania (Non-RGGI States) do not. Some believe that this is creating an unlevel playing field and making it harder for our generators to compete and therefore putting jobs at risk. The

environmental benefits of the program may also be undercut, as dirtier forms of generation continue to operate in neighboring states and produce carbon that ultimately impacts the environment as well as the health of New Yorkers. This bill seeks a report from experts to determine whether requiring participation of out of State generators is a good idea, and also to recommend the most efficient way to implement such a program with the least impact on competitive markets.

LEGISLATIVE HISTORY:

This is a new bill

FISCAL IMPLICATIONS:

minimal fiscal impact to the state

EFFECTIVE DATE:

This act shall take effect immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 4886 2013-2014 Regular Sessions IN SENATE April 30, 2013 ___________
Introduced by Sen. MAZIARZ -- read twice and ordered printed, and when printed to be committed to the Committee on Energy and Telecommuni- cations AN ACT directing the New York state energy research and development authority to conduct an analysis of the potential impacts of partic- ipation in the Regional Greenhouse Gas Initiative by out of state generators THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The New York state energy research and development authori- ty shall, within ninety days of the effective date of this act, issue a request for proposals to conduct an analysis of the potential impacts of participation in the Regional Greenhouse Gas Initiative by out of state generators and also a cost benefit analysis of all of the programs asso- ciated with the program as it currently operates. Such analysis shall include but not be limited to the following: 1. An analysis of the feasibility and potential impacts, including those on competitive markets and possible methodologies that could be employed to either require out of state generators who export power to the state to participate in the auction associated with the Regional Greenhouse Gas Initiative or impose charges on such power, or utilize other methods to ensure equitable treatment for generators operating inside and outside the state; and 2. An examination of the costs associated with the Regional Greenhouse Gas Initiative, including a breakdown in the aggregate of the allowances purchased organized by county of origin, as well as a specific breakdown of the money spent from all of the programs associated with the Regional Greenhouse Gas Initiative, including financial assistance provided and projects constructed in each region since the inception of each program, and a comprehensive analysis of jobs lost and gained as a result of the programs associated with the charges associated with the auction and the
projects undertaken with such proceeds, and any impacts on competitive markets as well as any direct ratepayer impacts. S 2. The analyses required by this act shall be submitted to the governor, the temporary president of the senate, the speaker of the assembly, the chair of the senate committee on energy and telecommuni- cations and the chair of the assembly energy committee, no later than March 1, 2014. S 3. This act shall take effect immediately.

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