Amd §§75-0101, 75-0109, 75-0111 & 75-0119, add §§75-0121 - 75-0129, En Con L; amd §1854, add §1885, Pub Auth
L
Establishes an economy-wide cap and invest program to support greenhouse gas emissions reductions in the state by setting a maximum allowable amount of greenhouse gas emissions by covered entities and regulating the sale or auction of greenhouse gas emissions allowances to covered entities.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A8469
SPONSOR: Kelles TITLE OF BILL:
An act to amend the environmental conservation law and the public
authorities law, in relation to establishing an economy-wide cap and
invest program to support greenhouse gas emissions reductions in the
state
PURPOSE OR GENERAL IDEA OF BILL:
This legislation establishes a Cap & Invest system pursuant to the
statewide greenhouse gas limits established Climate Leadership and
Community Protection Act (CLCPA). This program was detailed in the
Climate Action Council's Scoping plan for the NYS Energy Research and
Development Authority to adopt an economy-wide cap and invest program to
ensure *the statewide greenhouse gas limits are not surpassed.
SUMMARY OF PROVISIONS:
1) Legislative intent; 2) Definitions; 3) Amends subdivision 2 of
section 75-0109 of the ENCL to establish data collection and assessment
system for greenhouse gas (GHG) emission source compliance accounting
for disadvantaged communities, site or facility specific caps, and
sector-specific benchmarks and goals for reduction; 4) Amends section
75-0109 of the ENCL by adding new subdivisions 5 - 9 to add statewide,
site- or facility-specific, and sector-specific GHG gas emissions limits
for each compliance period; all revenue and penalties to be deposited in
the GHG Emissions Reduction Account; 5) Amends subdivision 1 of section
75-0111 of the ENCL by adding a new paragraph d to provide for
reimbursement of expenses for the working group detailed in section ENCL
75-011; 6) Amends paragraphs a and b of subdivision 2 of section 75-0111
of the ENCL, semantic amendments; 7) Amends paragraph b of subdivision 2
of section 75-0119 of the ENCL, technical amendments; 8) Amends ENCL by
adding five new sections 75-0121, 75-0123, 75-0125, 75-0127 and 75-0129
to provide for the Cap and Invest Program and the allocation, use, and
price of allowances; requires the DEC and NYSERDA to determine a time-
line for retiring fossil fuel generation facilities to reduce GHG emis-
sions; DEC to oversee transfer of GHG allowances via the GHG emissions
Reduction Account; provides for regulations designating Energy-Intensive
and Trade-Exposed facilities (EITEs); allows designated EITEs to buy
allowances at reduced cost; provides for auction or sale of allowances;
once granted, allowances not tradable, sellable, exchangeable or other-
wise transferable; process for establishment or price of allowances;
linkage of the Cap and Invest program with the Regional Greenhouse Gas
Initiative; provides for enforcement & penalties; 9) Amends section 1854
of the Public Authorities Law by adding five new subdivisions 27 - 31 to
provide coordination with other programs and services related to GHG
emissions or co-pollutant reductions, climate mitigation, and other
measures identified in the scoping plan; sets penalties for violations
and fines relating to cap and invest; provides for the transfer of funds
and reporting; 10) Allocation of funds received under provisions of bill
sections 8 & 9 to be allocated only to the NY. Climate Action Fund, to
be used only in furtherance of the goals in the CLCPA; 11) Amends the
Public Authorities Law by adding a new section 1885 to establish the
office of Equity for Energy and Climate within NYSERDA; providing defi-
nitions and directives for a community-directed Climate Solutions Grants
program to provide assistance to community-based organizations, projects
& initiatives not assisted by other assistance programs with 75% going
to disadvantaged communities; sets standards for community decision-mak-
ing and accountability mechanisms, and reporting to the Climate Justice
Working Group, Governor and Legislature; 12) Severability; 13) Effective
date.
JUSTIFICATION:
In 2019, NYS enacted the CLCPA to reduce "greenhouse gas emissions from
all anthropogenic sources 100% over 1990 levels by the year 2050, with
an incremental target of at least a 40 percent reduction in climate
pollution by the year 2030, in line with USGCRP and IPCC projections of
what is necessary to avoid the most severe impacts of climate change."
It mandates New York reduce the state's volume of greenhouse gas emis-
sions by at least 85% as compared to 1990 levels by the year 2050. The
Climate Action Council Scoping Plan identifies a "Cap & Invest" program
as one way the State could meet its mandates.
Implemented correctly, Cap & Invest would reduce economy-wide emissions,
create clean energy jobs, reduce energy bills for households and small
businesses, improve public health through the reduction of co-pollu-
tants, and prepare our communities to weather the effects of extreme
storms. Done poorly, a Cap & Invest system would exacerbate environ-
mental injustice, burden disadvantaged communities with pollution
hotspots, and fail to achieve the goals of the CLCPA. An effective and
equitable Cap & Invest system must be implemented with input from
impacted communities to avoid the harms we have seen from other
pollution pricing mechanisms that have relied on 'trading' the right to
pollute disadvantaged communities leading to increased incidence of
asthma, heart disease, and respiratory cancer among other negative
health conditions.
PRIOR LEGISLATIVE HISTORY:
New Bill.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
Undetermined.
EFFECTIVE DATE:
This act shall take effect immediately.
