S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  8888

                          I N  A S S E M B L Y

                            February 27, 2014
                               ___________

Introduced  by  M. of A. MOYA -- read once and referred to the Committee
  on Energy

AN ACT to amend the public service law, the public authorities law,  and
  the environmental conservation law, in relation to biomass-fired elec-
  tric  generating  facilities  subject  to  the regional greenhouse gas
  initiative, the CO2 budget trading  program,  and  the  CO2  allowance
  auction program

  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 economic and environmental interests of the
citizens of the state of New York to  support  and  encourage  renewable
energy generation through the conversion of coal-fired electric generat-
ing  facilities  to  biomass-fired facilities. The combustion of biomass
offers a sustainable and manageable carbon lifecycle since the materials
included in biomass generally absorb  atmospheric  carbon  during  their
lifecycle  and then return it to the atmosphere during combustion.  This
process mimics the natural lifecycle of plant life that can fall to  the
forest floor, decompose and return its carbon to the atmosphere.
  The  legislature  further  finds  and declares that biomass production
facilities support and sustain jobs, particularly in upstate  New  York,
where more than four thousand people are employed directly or indirectly
by  the industry. In fact, many of the largest and most successful biom-
ass facilities are located in parts of New York  state  that  have  high
unemployment and are in desperate need of economic development. New York
state  also  possesses  an  abundance  of  biomass fuel due to the large
amount of untapped forest and agricultural land where biomass  fuel  can
be collected. Biomass is the equivalent of solar energy stored in organ-
ic matter and is environmentally friendly while costing around one third
of the cost of fossil fuels.
  As  such,  to the extent that operators of electric generating facili-
ties in New York state are willing to convert formerly coal-fired facil-
ities (boilers, combustion  turbines,  or  combined  cycle  systems)  to
instead  be fueled by biomass, state policy should encourage and support

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

                                                           LBD13745-01-4

A. 8888                             2

such conversions rather than discourage them.  While  new  biomass-fired
electric  generating  facilities  are not required to acquire CO2 allow-
ances under the regulations implementing  the  Regional  Greenhouse  Gas
Initiative  (RGGI)  in New York state, former coal-fired facilities that
convert to combusting biomass are still subject to  RGGI's  requirements
under  existing  regulations, which effectively discourages such conver-
sions. To remedy this situation, and consistent with the intent of  RGGI
to  encourage more renewable energy generation, the legislature declares
that formerly coal-fired electric generating facilities that convert  to
primarily  biomass-fired facilities shall not be required under the RGGI
regulations to obtain CO2 allowances for CO2 emissions  attributable  to
the burning of biomass fuel.
  S  2.  The public service law is amended by adding a new section 73 to
read as follows:
  S 73. COOPERATION WITH THE NEW YORK STATE ENERGY RESEARCH AND DEVELOP-
MENT AUTHORITY AND THE DEPARTMENT  OF  ENVIRONMENTAL  CONSERVATION.  THE
DEPARTMENT  SHALL  COOPERATE WITH THE NEW YORK STATE ENERGY RESEARCH AND
DEVELOPMENT AUTHORITY AND THE DEPARTMENT OF  ENVIRONMENTAL  CONSERVATION
IN  THE  IMPLEMENTATION  OF  SUBDIVISION  FOUR OF SECTION 19-0312 OF THE
ENVIRONMENTAL CONSERVATION LAW RELATING TO ELECTRIC  GENERATING  FACILI-
TIES  THAT  ARE  SUBJECT TO THE CO2 BUDGET TRADING PROGRAM (6 NYCRR PART
242) ESTABLISHED BY THE  DEPARTMENT  OF  ENVIRONMENTAL  CONSERVATION  IN
CONNECTION WITH THE REGIONAL GREENHOUSE GAS INITIATIVE.
  S 3. Section 1854 of the public authorities law is amended by adding a
new subdivision 22 to read as follows:
  22.  COOPERATION WITH THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION AND
THE DEPARTMENT OF PUBLIC SERVICE. THE AUTHORITY SHALL COOPERATE WITH THE
DEPARTMENT OF ENVIRONMENTAL CONSERVATION AND THE  DEPARTMENT  OF  PUBLIC
SERVICE  IN THE IMPLEMENTATION OF SUBDIVISION FOUR OF SECTION 19-0312 OF
THE ENVIRONMENTAL  CONSERVATION  LAW  RELATING  TO  ELECTRIC  GENERATING
FACILITIES  THAT  ARE SUBJECT TO THE CO2 BUDGET TRADING PROGRAM (6 NYCRR
PART 242) ESTABLISHED BY THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION IN
CONNECTION WITH THE REGIONAL GREENHOUSE GAS INITIATIVE.
  S 4. Section 19-0312 of the environmental conservation law is  amended
by adding a new subdivision 4 to read as follows:
  4.  NOTWITHSTANDING ANY LAW, RULE, REGULATION OR POLICY TO THE CONTRA-
RY, AN ELECTRIC GENERATING FACILITY THAT  USES  BIOMASS  FOR  MORE  THAN
FIFTY  PERCENT  OF ITS ANNUAL HEAT INPUT SHALL NOT BE REQUIRED TO OBTAIN
CO2 ALLOWANCES FOR CO2 EMISSIONS ATTRIBUTABLE TO THE BURNING OF  BIOMASS
UNDER  THE  CO2  BUDGET  TRADING  PROGRAM  (6 NYCRR PART 242), WHICH WAS
ESTABLISHED BY THE DEPARTMENT IN CONNECTION WITH THE REGIONAL GREENHOUSE
GAS INITIATIVE, TO THE EXTENT THAT  SUCH  ELECTRIC  GENERATING  FACILITY
USES  BIOMASS  IN  A STATIONARY BOILER, COMBUSTION TURBINE OR A COMBINED
CYCLE SYSTEM THAT (I) WAS FORMERLY FOSSIL FUEL-FIRED DUE TO THE  USE  OF
COAL  AS  ITS  PRIMARY  FUEL AND (II) IS NO LONGER AUTHORIZED TO COMBUST
COAL UNDER ITS AIR TITLE V FACILITY  PERMIT  ISSUED  BY  THE  DEPARTMENT
PURSUANT TO 6 NYCRR SUBPART 201-6. FOR THE PURPOSES OF THIS SUBDIVISION,
THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
  A. "BIOMASS" SHALL MEAN:
  (I)  ANY  ORGANIC MATERIAL GROWN FOR THE PURPOSE OF BEING CONVERTED TO
ENERGY;
  (II) ANY ORGANIC BYPRODUCT OF AGRICULTURE THAT CAN BE  CONVERTED  INTO
ENERGY; OR
  (III)  ANY  MATERIAL  THAT CAN BE CONVERTED INTO ENERGY AND IS NONMER-
CHANTABLE FOR OTHER PURPOSES, THAT IS SEGREGATED FROM OTHER NONMERCHANT-
ABLE MATERIAL, AND THAT IS:

A. 8888                             3

  (1)  A  FOREST-RELATED  ORGANIC  RESOURCE,  INCLUDING  MILL  RESIDUES,
PRECOMMERCIAL  THINNINGS,  SLASH, BRUSH, OR BYPRODUCT FROM CONVERSION OF
TREES TO MERCHANTABLE MATERIAL; OR
  (2) A WOOD MATERIAL, INCLUDING PALLETS, CRATES, DUNNAGE, MANUFACTURING
AND     CONSTRUCTION    MATERIALS    (OTHER    THAN    PRESSURE-TREATED,
CHEMICALLY-TREATED,  OR  PAINTED  WOOD  PRODUCTS),  AND   LANDSCAPE   OR
RIGHT-OF-WAY TREE TRIMMINGS.
  B.  "BOILER",  "COMBUSTION  TURBINE", "COMBINED CYCLE SYSTEM", "FOSSIL
FUEL-FIRED", AND "PRIMARY FUEL" SHALL HAVE THE SAME MEANINGS AS ASCRIBED
TO SUCH TERMS IN 6 NYCRR 242-1.2.
  S 5. This act shall take effect on the ninetieth day  after  it  shall
have  become  a law and shall apply to all control periods commencing on
or after January 1, 2012; provided however, that  effective  immediately
the  department of environmental conservation is authorized and directed
to amend, revise and/or repeal any rule, regulation or policy  necessary
for the implementation of this act on or before such effective date.

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 8888--A

                          I N  A S S E M B L Y

                            February 27, 2014
                               ___________

Introduced  by  M.  of A. MOYA, BLANKENBUSH -- read once and referred to
  the Committee on Energy -- committee discharged, bill amended, ordered
  reprinted as amended and recommitted to said committee

AN ACT to amend the public service law, the public authorities law,  and
  the environmental conservation law, in relation to biomass-fired elec-
  tric  generating  facilities  subject  to  the regional greenhouse gas
  initiative and the CO2 budget trading program

  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 economic and environmental interests  of  the
citizens  of  the  state  of New York to support and encourage renewable
energy generation through the conversion of coal-fired electric generat-
ing facilities to biomass-fired facilities. The  combustion  of  biomass
offers a sustainable and manageable carbon lifecycle since the materials
included  in  biomass  generally  absorb atmospheric carbon during their
lifecycle and then return it to the atmosphere during combustion.   This
process  mimics the natural lifecycle of plant life that can fall to the
forest floor, decompose and return its carbon to the atmosphere.
  The legislature further finds and  declares  that  biomass  production
facilities  support  and sustain jobs, particularly in upstate New York,
where more than four thousand people are employed directly or indirectly
by the industry. In fact, many of the largest and most successful  biom-
ass  facilities  are  located  in parts of New York state that have high
unemployment and are in desperate need of economic development. New York
state also possesses an abundance of  biomass  fuel  due  to  the  large
amount  of  untapped forest and agricultural land where biomass fuel can
be collected. Biomass is the equivalent of solar energy stored in organ-
ic matter and is environmentally friendly while costing around one third
of the cost of fossil fuels.
  As such, to the extent that operators of electric  generating  facili-
ties in New York state are willing to convert formerly coal-fired facil-
ities  (boilers,  combustion  turbines,  or  combined  cycle systems) to
instead be fueled by biomass, state policy should encourage and  support

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

                                                           LBD13745-03-4

A. 8888--A                          2

such  conversions  rather  than discourage them. While new biomass-fired
electric generating facilities are not required to  acquire  CO2  allow-
ances  under  the  regulations  implementing the Regional Greenhouse Gas
Initiative  (RGGI)  in New York state, former coal-fired facilities that
convert to combusting biomass are still subject to  RGGI's  requirements
under  existing  regulations, which effectively discourages such conver-
sions. To remedy this situation, and consistent with the intent of  RGGI
to  encourage more renewable energy generation, the legislature declares
that formerly coal-fired electric generating facilities that convert  to
primarily  biomass-fired  facilities shall be treated in the same manner
as a new biomass facility under the RGGI regulations.
  S 2. The public service law is amended by adding a new section  73  to
read as follows:
  S 73. COOPERATION WITH THE NEW YORK STATE ENERGY RESEARCH AND DEVELOP-
MENT  AUTHORITY  AND  THE  DEPARTMENT OF ENVIRONMENTAL CONSERVATION. THE
DEPARTMENT SHALL COOPERATE WITH THE NEW YORK STATE ENERGY  RESEARCH  AND
DEVELOPMENT  AUTHORITY  AND THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION
IN THE IMPLEMENTATION OF SUBDIVISION FOUR  OF  SECTION  19-0312  OF  THE
ENVIRONMENTAL  CONSERVATION  LAW RELATING TO ELECTRIC GENERATING FACILI-
TIES THAT ARE SUBJECT TO THE CO2 BUDGET TRADING PROGRAM  (6  NYCRR  PART
242)  ESTABLISHED  BY  THE  DEPARTMENT  OF ENVIRONMENTAL CONSERVATION IN
CONNECTION WITH THE REGIONAL GREENHOUSE GAS INITIATIVE.
  S 3. Section 1854 of the public authorities law is amended by adding a
new subdivision 22 to read as follows:
  22. COOPERATION WITH THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION  AND
THE DEPARTMENT OF PUBLIC SERVICE. THE AUTHORITY SHALL COOPERATE WITH THE
DEPARTMENT  OF  ENVIRONMENTAL  CONSERVATION AND THE DEPARTMENT OF PUBLIC
SERVICE IN THE IMPLEMENTATION OF SUBDIVISION FOUR OF SECTION 19-0312  OF
THE  ENVIRONMENTAL  CONSERVATION  LAW  RELATING  TO  ELECTRIC GENERATING
FACILITIES THAT ARE SUBJECT TO THE CO2 BUDGET TRADING PROGRAM  (6  NYCRR
PART 242) ESTABLISHED BY THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION IN
CONNECTION WITH THE REGIONAL GREENHOUSE GAS INITIATIVE.
  S  4. Section 19-0312 of the environmental conservation law is amended
by adding a new subdivision 4 to read as follows:
  4. NOTWITHSTANDING ANY LAW, RULE, REGULATION OR POLICY TO THE  CONTRA-
RY,  AN  ELECTRIC  GENERATING  FACILITY INCLUDING ANY BOILER, COMBUSTION
TURBINE OR  COMBINATION  CYCLE  SYSTEM,  THAT  A.  WAS  FORMERLY  FOSSIL
FUEL-FIRED DUE TO THE USE OF COAL AS ITS PRIMARY FUEL,
  B.  IS  NO  LONGER  AUTHORIZED  TO  COMBUST COAL UNDER ITS AIR TITLE V
FACILITY PERMIT ISSUED BY THE DEPARTMENT PURSUANT  TO  6  NYCRR  SUBPART
201-6,
  C.  USES  FOREST  RESIDUES  AND/OR  MILL  RESIDUES FOR MORE THAN FIFTY
PERCENT OF ITS ANNUAL HEAT INPUT, AND
  D. USES FOSSIL FUEL FOR LESS THAN FIVE  PERCENT  OF  ITS  ANNUAL  HEAT
INPUT,  SHALL  NOT  BE DEFINED AS FOSSIL FUEL-FIRED UNDER THE CO2 BUDGET
TRADING PROGRAM (6 NYCRR PART 242).  FOR THE PURPOSES OF  THIS  SUBDIVI-
SION:
  "BOILER",  "COMBUSTION  TURBINE",  "COMBINED CYCLE SYSTEM" AND "FOSSIL
FUEL" SHALL HAVE THE SAME MEANINGS AS ASCRIBED TO SUCH TERMS IN 6  NYCRR
S 242-1.2.
  S  5.  This  act shall take effect on the ninetieth day after it shall
have become a law and shall apply to all control periods  commencing  on
or  after  January 1, 2012; provided however, that effective immediately
the department of environmental conservation is authorized and  directed
to  amend, revise and/or repeal any rule, regulation or policy necessary
for the implementation of this act on or before such effective date.