NY State Senate Bill 2015-S4529

Senate Bill S4529

2015-2016 Legislative Session

Relates to carbon dioxide allowances for biomass-fired electric generating facilities under the carbon dioxide budget trading program

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Archive: Last Bill Status - In Senate Committee Energy And Telecommunications Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2016	referred to energy and telecommunications
Mar 26, 2015	referred to energy and telecommunications

co-Sponsors

2015-S4529 (ACTIVE) - Details

See Assembly Version of this Bill:: A4754
Current Committee:: Senate Energy And Telecommunications
Law Section:: Public Service Law
Laws Affected:: Add §73, Pub Serv L; amd §1854, Pub Auth L; amd §19-0312, En Con L
Versions Introduced in Other Legislative Sessions:: 2013-2014: S6499, A8888
2017-2018: S6063, A6214
2019-2020: S1431
2021-2022: S2671

2015-S4529 (ACTIVE) - Summary

Establishes that electric generating facilities that use biomass for more than 50% of its annual heat input shall not be required to obtain carbon dioxide allowances for carbon dioxide emissions attributable to the burning of biomass under the carbon dioxide budget trading program.

2015-S4529 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S4529

TITLE OF BILL:  An act to amend the public service law, the public
authorities law, and the environmental conservation law, in relation
to biomass-fired electric generating facilities subject to the
regional greenhouse gas initiative and the CO2 budget trading program

PURPOSE:

To provide certain electric generators that convert from coal fired
generation to biomass fired generation an exemption from participation
in the State's CO2 trading and auction programs. Under the exemption,
such electric generators shall not be required to obtain CO2
allowances for CO2 emissions that are attributable to the burning of
biomass.

SUMMARY OF PROVISIONS:

Section 1- Sets forth the legislative intent and lays out the benefits
to the environment and the economy associated with biomass electric
generation.

Section 2- Amends the public Service law to add a new section 73 that
requires The Public Service Commission (PSC). The Department of
Environmental Conservation (The Department) and NYSERDA to cooperate
in the implementation of the provisions of this bill.

Section 3- Makes similar conforming changes in relation to
coordination between NYSERDA, DEC and the PSC, this time to the Public
Authorities Law.

Section 4- Waives the requirement for an electric generating facility
that uses biomass for more than 50% of its heat input to obtain CO2
allowances under the RGGI program, provided that such generator
previously combusted coal as its primary fuel and that it is no longer
authorized to combust coal.

Section 5-Sets forth the effective date.

JUSTIFICATION:

Biomass facilities are an economic development engine across New York
State that support more than 4,000 direct and indirect jobs.
Collection of biomass fuel as well as transportation and generation
all combine to make biomass facilities important to local economies.
In addition, Biomass is a sustainable fuel, since the carbon that may
be emitted by a facility is consistent with the natural life cycle of
such material that may naturally degrade. Currently, new biomass
plants are not required to participate in the RGGI program and to
purchase carbon off sets, but plants that are converted from coal to
biomass are.  Since it is in the environmental interest of the
residents of the state for New York to encourage cleaner burning
fuels, and because coal fired plants could convert to biomass
facilities and still maintain jobs and support local taxing
jurisdictions, it is important that such conversions also be exempted
from the costs associated with purchasing carbon off-sets. Under this
exemption, certain electric generators shall not be required to obtain


CO2 allowances for CO2 emissions that are attributable to the burning
of biomass. This bill accomplishes that goal in statue thereby
providing certainty to generators who may be considering such
conversions.

LEGISLATIVE HISTORY:

2014 - S. 6499b - Rules Committee/A. 8888b - Energy Committee.

FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE:

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.

2015-S4529 (ACTIVE) - Bill Text download pdf

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

                                  4529

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                             March 26, 2015
                               ___________

Introduced  by  Sens. GRIFFO, RITCHIE -- read twice and ordered printed,
  and when printed to be committed to the Committee on Energy and  Tele-
  communications

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.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06739-01-5

S. 4529                             2

  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
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 ELIGIBLE BIOMASS 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",  "ELIGIBLE
BIOMASS"  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

S. 4529                             3

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.

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Senate Bill S4529

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Sponsored By

Joseph A. Griffo