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

                                  6185

                            I N  S E N A T E

                               (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 Dioxide

 EXPLANATION--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 SHALL

S. 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.