Relates to the distribution of revenues under the carbon dioxide allowance auction program.
Ayes (25): DeFrancisco, Bonacic, Farley, Flanagan, Golden, Griffo, Grisanti, Hannon, Lanza, Larkin, Little, Marcellino, Nozzolio, O'Mara, Ranzenhofer, Robach, Savino, Seward, Young, Valesky, Martins, Diaz, Peralta, Kennedy, Hassell-Thompson
Ayes W/R (4): LaValle, Breslin, Parker, Stavisky
Nays (8): Krueger, Dilan, Rivera, Gianaris, Montgomery, Perkins, Squadron, Espaillat
TITLE OF BILL: An act to amend the public authorities law, in relation to certain programs of the New York state energy research and development authority
To ensure that the monies collected under the state's Carbon Dioxide Allowance Auction, under the Regional Greenhouse Gas Initiative (RGGI) are spent are spent at appropriate levels in those counties who host carbon-intensive generating facilities and are therefore burdened by both the economic costs of the program and the potentially harmful effects of the emissions associated with those facilities.
SUMMARY OF PROVISIONS:
Section 1: Sets forth the legislative intent.
Section 2: Requires NYSERDA to track revenues associated with the purchase of carbon off-sets to their geographic origin, and sets forth requirements for minimal levels of investment in carbon abatement projects in those affected counties. Further, this section makes allowances for Municipal electric corporations, rural electric cooperatives or other public power entities that may own their own generation to create their own carbon abatement programs.
Section 3: Sets forth the effective date.
The Regional Greenhouse Gas Initiative (RGGI) and its associated carbon off-set auction was created by the Executive Branch with the intent of reducing harmful emissions and providing revenue to fund energy efficiency programs and other carbon abatement programs that would support a clean energy economy These are laudable goals, and they are being carried out through various programs including on-bill recovery. However, little has been done, since the inception of the program to account for the costs to those communities who host carbon intensive electric generating facilities. These areas face the harsh economic reality of being dependent upon the jobs and tax base that the plant provides, even as said plants are facing higher and higher costs due to the requirements of the RGGI program At the same time, these communities are at ground zero in terms of the potentially negative impacts that the plants may produce as it relates to air quality and other environmental factors This bill seeks to ensure that those communities who pay the costs of the program-both economically and environmentally receive a minimum level of benefit in terms of job creation and environmental impact abatements.
This is a new bill.
This act shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 6185 IN SENATE (PREFILED) January 8, 2014 ___________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 to amend the public authorities law, in relation to certain programs of the New York state energy research and development author- ity THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Legislative intent. The legislature hereby finds and declares that it is in the best interests of the state of New York to pursue policies that will improve air quality, reduce pollution and further the economic well-being of all of our citizens. The Carbon Diox- ide Allowance Auction Program as described in Part 507 of Title 21 of the New York Codes, Rules and Regulations and the Carbon Dioxide Budget Trading Program as described in Part 242 of Title 6 of the New York Codes, Rules and Regulations are two non-legislative programs that have been adopted by state agencies and state authorities in furtherance of the above stated policy goal. These programs collect money for the sale of carbon allowances and use that revenue to fund energy efficiency programs and other programs with the laudable goal of reducing green- house gas emissions. The legislature further declares that areas of the state that host coal plants or older natural gas or oil fired plants are most negatively impacted economically by the costs associated with the above referenced programs, which can threaten the continued operation of these plants and therefore the jobs and tax base that they represent. Even though these plants contribute the most revenue to the above referenced programs and any negative impacts on air quality would, as a result, be felt most acutely by those communities, there is currently no requirement that these programs invest any fixed percentage of their monies in those areas. Therefore, the legislature finds that it is necessary to require mini- mum levels of investment of revenues derived from the Carbon DioxideEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. S LBD13298-01-4 S. 6185 2
Allowance Auction Program and the Carbon Dioxide Budget Trading Program in communities that host carbon intensive electric generating facili- ties. Such a policy would allow the state to continue to pursue its goals of reducing emissions and pollution, while still demonstrating support for the development of a clean energy economy in those communi- ties most impacted by the costs associated with the Carbon Dioxide Allowance Auction Program and the Carbon Dioxide Budget Trading Program. S 2. The public authorities law is amended by adding a new section 1882 to read as follows: S 1882. DISBURSEMENT OF FUNDS DERIVED FROM CERTAIN PROGRAMS. 1. NOTWITHSTANDING ANY RULE, REGULATION, POLICY OR ORDER TO THE CONTRARY: (A) THE AUTHORITY SHALL, WITHIN SIX MONTHS OF THE EFFECTIVE DATE OF THIS SECTION, ESTABLISH A PROGRAM TO TRACK THE PURCHASE OF CARBON ALLOW- ANCES IN THE AUCTION OR AUCTIONS ESTABLISHED UNDER THE CARBON DIOXIDE ALLOWANCE AUCTION PROGRAM AS DESCRIBED IN PART 507 OF TITLE 21 OF THE NEW YORK CODES, RULES AND REGULATIONS AND/OR THE CARBON DIOXIDE BUDGET TRADING PROGRAM AS DESCRIBED IN PART 242 OF TITLE 6 OF THE NEW YORK CODES, RULES AND REGULATIONS, WITH THE GOAL OF IDENTIFYING ELECTRIC GENERATING FACILITIES THAT PURCHASE SUCH ALLOWANCES, THE LOCATION OF SUCH ELECTRIC GENERATING FACILITIES, AND THE VALUE OF THOSE PURCHASES. THE AUTHORITY MAY IN ITS DISCRETION, CONSULT WITH THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION, THE PUBLIC SERVICE COMMISSION, AND THE BULK SYSTEM OPERATOR FOR THE STATE OF NEW YORK, AND MAY CONTACT ELECTRIC GENERATING FACILITIES WITHIN THE STATE TO REQUEST SUCH INFORMATION AS THEY ARE WILLING TO PROVIDE. (B) THE AUTHORITY SHALL, COMMENCING WITH CALENDAR YEAR TWO THOUSAND FOURTEEN, DETERMINE THE TOTAL AMOUNT OF REVENUE COLLECTED IN EACH COUNTY EACH YEAR AS A RESULT OF THE PURCHASE OF CARBON ALLOWANCES BY ELECTRIC GENERATING FACILITIES LOCATED WITHIN EACH COUNTY IN CONNECTION WITH THE CARBON DIOXIDE ALLOWANCE AUCTION PROGRAM AND/OR THE CARBON DIOXIDE BUDG- ET TRADING PROGRAM. BEGINNING ONE YEAR AFTER THE EFFECTIVE DATE OF THIS SECTION, THE AUTHORITY IS DIRECTED TO SPEND NO LESS THAN FIFTY PERCENT OF THE TOTAL AMOUNT OF REVENUE COLLECTED IN EACH COUNTY ON PROJECTS OR PROGRAMS LOCATED WITHIN SUCH COUNTY. SUCH EXPENDITURES MUST BE CONSIST- ENT WITH THE RULES, REGULATIONS AND LIMITATIONS ESTABLISHED BY THE AUTHORITY WITH RESPECT TO SUCH EXPENDITURES AND MAY BE EFFECTUATED THROUGH ANY EXISTING PROGRAM, OR THROUGH NEW PROGRAMS, PROVIDED THAT THE GOAL OF SUCH PROGRAM OR PROGRAMS IS CARBON DIOXIDE ABATEMENT. (C) IF SUCH CARBON ALLOWANCES ARE PURCHASED IN AN AUCTION UNDER THE CARBON DIOXIDE ALLOWANCE AUCTION PROGRAM AND/OR THE CARBON DIOXIDE BUDG- ET TRADING PROGRAM BY A MUNICIPAL ELECTRIC CORPORATION, RURAL COOPER- ATIVE OR OTHER PUBLIC POWER ENTITY THAT OWNS AND OPERATES ITS OWN ELEC- TRIC GENERATING FACILITIES AND IS SUBJECT TO THE CARBON DIOXIDE ALLOWANCE AUCTION PROGRAM AND/OR CARBON DIOXIDE BUDGET TRADING PROGRAM, THEN SUCH CORPORATION OR RURAL COOPERATIVE OR OTHER PUBLIC POWER ENTITY MAY RETAIN UP TO FIFTY PERCENT OF THE REVENUE THAT IT WOULD OTHERWISE USE TO PURCHASE ALLOWANCES IN ORDER TO IMPLEMENT ITS OWN LOCALLY BASED CARBON DIOXIDE ABATEMENT PROGRAMS. SUCH PROGRAMS MUST BE SUBMITTED TO THE AUTHORITY IN WRITING WITHIN SIX MONTHS OF THE EFFECTIVE DATE OF THIS SECTION AND SHALL ONLY BE IMPLEMENTED AFTER SUCH PROGRAM HAS BEEN APPROVED BY THE AUTHORITY. ANY PROGRAM SUBMITTED FOR APPROVAL MUST SATISFY THE RULES AND REQUIREMENTS ESTABLISHED BY THE AUTHORITY FOR THE PROGRAMS THAT THE AUTHORITY ADMINISTERS THAT ARE FUNDED THROUGH PROCEEDS COLLECTED THROUGH THE CARBON DIOXIDE ALLOWANCE AUCTION PROGRAM AND/OR THE CARBON DIOXIDE BUDGET TRADING PROGRAM. FURTHER, THE AUTHORITY SHALLS. 6185 3
REQUIRE AUDITS OF SUCH PROGRAMS INITIATED FROM TIME TO TIME AND AT ITS DISCRETION IN ORDER TO ENSURE COMPLIANCE. 2. THE AUTHORITY IS AUTHORIZED TO PROMULGATE OTHER RULES AND REGU- LATIONS AS IT DEEMS NECESSARY AND PROPER TO IMPLEMENT THE PROVISIONS OF THIS SECTION, PROVIDED THAT SUCH RULES AND REGULATIONS ARE ADOPTED IN A MANNER CONSISTENT WITH THE TIMELINE NECESSARY FOR THE FULL IMPLEMENTA- TION OF THIS SECTION, AND ARE CONSISTENT WITH THE LEGISLATIVE INTENT OF THE CHAPTER OF THE LAWS OF TWO THOUSAND FOURTEEN WHICH ADDED THIS SECTION. S 3. This act shall take effect immediately.