S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7645
 
                             I N  S E N A T E
 
                             February 2, 2018
                                ___________
 
 Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
   printed to be committed to the Committee on Environmental Conservation
 
 AN ACT to amend the environmental conservation law, the labor  law,  the
   public  authorities  law  and the tax law, in relation to enacting the
   climate and community investment act
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Short  title. This act shall be known and may be cited as
 the "climate and community investment act".
   § 2. Legislative findings and declaration.  The legislature finds  and
 declares that:
   1.  Climate  change is adversely affecting economic well-being, public
 health, natural resources, and the environment of New York. The  adverse
 impacts of climate change include:
   (a)  an  increase  in  the  severity  and frequency of extreme weather
 events, such as storms, flooding, and heat waves, which can cause direct
 injury or death, property damage, and ecological damage  (e.g.,  through
 the release of hazardous substances into the environment);
   (b)  rising  sea levels, which exacerbate damage from storm surges and
 flooding, contribute to coastal erosion  and  saltwater  intrusion,  and
 inundate  low-lying  areas,  leading to the displacement of or damage to
 coastal habitat, property, and infrastructure;
   (c) a decline in freshwater and saltwater fish populations;
   (d) increased average temperatures, which increase the demand for  air
 conditioning and refrigeration among residents and businesses;
   (e) exacerbation of air pollution; and
   (f)  an  increase  in  the  incidences  of infectious diseases, asthma
 attacks, heart attacks, and other negative health outcomes.
   2. The adverse impacts of climate  change  are  having  a  detrimental
 effect  on some of New York's largest industries, including agriculture,
 commercial shipping, forestry, tourism, and recreational and  commercial
 fishing.  These  impacts  also  place  additional strain on the physical
 infrastructure that delivers critical services to the  citizens  of  New

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

                                                            LBD14550-01-8

 S. 7645                             2
 
 York,  including  the  state's  energy,  transportation, stormwater, and
 wastewater infrastructure.
   3.  (a) The severity of current climate change and the threat of addi-
 tional and more severe change will be affected by the actions undertaken
 by New York and other jurisdictions to reduce greenhouse gas  emissions.
 According  to  the  U.S. Global Change Research Program (USGCRP) and the
 Intergovernmental Panel on Climate Change (IPCC), substantial reductions
 in greenhouse gas emissions will be required by mid-century in order  to
 limit  global  warming  to  no more than 2°C and ideally 1.5°C, and thus
 minimize the risk of severe impacts from climate  change.  Specifically,
 industrialized  countries  must reduce their greenhouse gas emissions by
 at least 80% below 1990 levels by 2050  in  order  to  stabilize  carbon
 dioxide  equivalent  concentrations  at 450 parts per million--the level
 required to stay within the 2°C target.
   (b) On December 12, 2015, one hundred  ninety-five  countries  at  the
 21st  Conference  of the parties of the United Nations Framework Conven-
 tion on Climate Change adopted an agreement  addressing  greenhouse  gas
 emissions mitigation, adaptation, and finance starting in the year 2020,
 known  as the Paris Agreement. The Paris Agreement was adopted on Novem-
 ber 4, 2016, and is  the  largest  concerted  global  effort  to  combat
 climate change to date.
   4.  Action  undertaken by New York to reduce greenhouse emissions will
 have an impact on global  greenhouse  gas  emissions  and  the  rate  of
 climate  change. In addition, such action will encourage other jurisdic-
 tions to implement complementary greenhouse gas reduction strategies and
 provide an example of how such strategies can be  implemented.  It  will
 also advance the development of green technologies and sustainable prac-
 tices  within  the  private  sector, which can have far-reaching impacts
 such as a reduction in the cost of renewable energy components, and  the
 creation of jobs and tax revenues in New York.
   5.  It  shall  therefore  be a goal of the state of New York to reduce
 greenhouse gas emissions from all anthropogenic sources 100% by the year
 2050, with an incremental target of at least a 50 percent  reduction  in
 climate pollution by the year 2030, in line with USGCRP and IPCC projec-
 tions  of  what is necessary to avoid the most severe impacts of climate
 change.
   6. Although substantial emissions reductions are  necessary  to  avoid
 the  most  severe  impacts  of  climate change, complementary adaptation
 measures will also be needed to  address  those  risks  that  cannot  be
 avoided. Some of the impacts of climate change are already observable in
 New  York  state  and  the  northeastern  United  States. Annual average
 temperatures are on the rise, winter  snow  cover  is  decreasing,  heat
 waves  and  precipitation  are  intensifying,  and  sea levels along New
 York's coastline are approximately one foot higher  than  they  were  in
 1900.  New York has also experienced an increasing number of extreme and
 unusual  weather  events,  like  Hurricanes  Irene  and  Lee   and   the
 unprecedented  Superstorm Sandy in 2012, which caused at least 53 deaths
 and $32 billion in damage in New York state.
   7. New York  should  therefore  minimize  the  risks  associated  with
 climate  change  through  a  combination of measures to reduce statewide
 greenhouse gas emissions and improve the resiliency of  the  state  with
 respect  to  the  impacts  and  risks  of  climate change that cannot be
 avoided.
   8. Climate change especially heightens the vulnerability of  disadvan-
 taged communities, which bear environmental and socioeconomic burdens as
 well as legacies of racial and ethnic discrimination. Actions undertaken

 S. 7645                             3
 
 by New York state to mitigate greenhouse gas emissions should prioritize
 the  safety  and  health of disadvantaged communities, control potential
 regressive impacts of future climate change  mitigation  and  adaptation
 policies  on  these communities, and prioritize the allocation of public
 investments in these areas.
   9. Creating good jobs and a thriving economy is a core concern of  New
 York  state.  Shaping  the  ongoing  transition  in our energy sector to
 ensure that it creates good jobs and protects  workers  and  communities
 that  may lose employment in the current transition must be key concerns
 of our climate policy. Setting  clear  standards  for  job  quality  and
 training  standards  encourages  not only high-quality work but positive
 economic impacts.
   10. Workers are at the  frontlines  of  climate  change.  Construction
 workers  and  building  service  workers  were some of the first workers
 dedicated to cleaning up damage inflicted by recent storms. These  work-
 ers  were  often operating in unsafe and toxic environments, cleaning up
 mold, and working in unstable buildings. In order to protect the  health
 and  welfare of these workers, it is in the interest of the state of New
 York to establish safe and healthy working conditions and proper  train-
 ing  for workers involved in climate change related activities. In addi-
 tion, much of the infrastructure work preparing our state for additional
 climate change events must happen quickly and efficiently. It is in  the
 interest  of  the  state  to  ensure labor harmony and promote efficient
 performance of work on climate change related work  sites  by  requiring
 workers to be well-trained and adequately compensated.
   11.  Ensuring  career  opportunities  are created and shared geograph-
 ically and demographically is necessary to ensure  increased  access  to
 good  jobs  for marginalized communities while making the same neighbor-
 hoods more resilient. Climate change has a  disproportionate  impact  on
 low-income  people,  women,  and  workers.  It is in the interest of the
 state of New York to protect and promote the interests of  these  groups
 against  the  impacts of climate change and severe weather events and to
 advance our equity goals by ensuring quality employment opportunities in
 safe working environments.
   12. The complexity  of  the  ongoing  energy  transition,  the  uneven
 distribution  of  economic opportunity, and the disproportionate cumula-
 tive economic and environmental burdens on communities mean  that  there
 is a strong state interest in setting a floor statewide for labor stand-
 ards, but allowing and encouraging individual agencies and local govern-
 ments to raise standards above that floor.
   13.  By  exercising  a  global leadership role on greenhouse gas miti-
 gation and climate change adaptation, New York will position its  econo-
 my,  technology centers, financial institutions, and businesses to bene-
 fit from national and international efforts to address  climate  change.
 New  York  state  has  already  demonstrated  leadership in this area by
 undertaking efforts such as:
   (a) executive order no. 24  (2009),  establishing  a  goal  to  reduce
 greenhouse gas emissions 80% by the year 2050, creating a climate action
 council, and calling for preparation of a climate action plan;
   (b) chapter 433 of the laws of 2009, establishing a state energy plan-
 ning board and requiring the board to adopt a state energy plan;
   (c) chapter 388 of the laws of 2011, directing the department of envi-
 ronmental  conservation  to  promulgate  rules  and regulations limiting
 emissions of carbon dioxide by newly constructed major generating facil-
 ities;

 S. 7645                             4
 
   (d) the adoption of a state  energy  plan  establishing  clean  energy
 goals for the year 2030 aimed at reducing greenhouse gas emission levels
 by  40%  from  1990  levels, producing 50% of electricity from renewable
 sources, and increasing energy efficiency from 2012 levels by 23%;
   (e)  collaboration  with  other  states on the Regional Greenhouse Gas
 Initiative, and the development of a regional low carbon fuel standard;
   (f) creation of new offices and task forces to address climate change,
 including the New York state office of  climate  change,  the  renewable
 energy task force, and the sea level rise task force; and
   (g)  the  enactment  of  the Community Risk and Resiliency Act (CRRA),
 which requires agencies to consider sea level rise and other climate-re-
 lated events when implementing certain state programs.
   This legislation will build upon these past developments by creating a
 comprehensive program for pricing greenhouse gas emissions and investing
 in a just transition to a low-carbon New York state economy, in  accord-
 ance  with  the targets established in executive order no. 24, the state
 energy plan, and USGCRP and IPCC projections.
   § 3. Article 19 of the environmental conservation law  is  amended  by
 adding a new title 13 to read as follows:
                                 TITLE 13
                           AIR POLLUTION PRICING
 SECTION 19-1301. DEFINITIONS.
         19-1303. METHODOLOGY AND AIR POLLUTANT PRICE INDEX.
         19-1305. IMPLEMENTATION OF FEES.
         19-1307. ALLOCATION OF REVENUES.
         19-1309. INVENTORY.
         19-1311. TRANSPORTATION POLLUTION.
         19-1313. REPORTING.
 § 19-1301. DEFINITIONS.
   FOR  THE  PURPOSES  OF  THIS TITLE, THE FOLLOWING TERMS SHALL HAVE THE
 FOLLOWING MEANINGS:
   1. "THE ACT" SHALL HAVE THE  SAME  MEANING  AS  IN  SUBDIVISION  8  OF
 SECTION 19-0107 OF THIS ARTICLE.
   2. "COVERED SOURCES" MEANS THOSE SOURCES OF REGULATED AIR CONTAMINANTS
 REQUIRED  TO  HAVE  A PERMIT UNDER TITLE V OF THE ACT (42 U.S.C. SECTION
 7661 ET SEQ).
   3. "CUMULATIVE BURDENS" MEAN THE ADVERSE HEALTH IMPACTS THAT ACCRUE TO
 INDIVIDUALS AND POPULATION GROUPS AS A RESULT OF EXPOSURE  TO  POLLUTION
 OVER  TIME,  AND  AS A RESULT OF EXPOSURE TO MULTIPLE FORMS OF POLLUTION
 AND OTHER RISK  FACTORS,  INCLUDING  POVERTY,  VIOLENCE,  AND  SUBSTANCE
 ABUSE.
   4.  "DISADVANTAGED  COMMUNITIES"  SHALL  HAVE  THE  SAME MEANING AS IN
 SUBDIVISION 3 OF SECTION 74-0101 OF THIS CHAPTER.
   5. "DOWNSTATE REGION" MEANS THE COUNTIES OF RICHMOND,  KINGS,  QUEENS,
 NEW YORK, BRONX, WESTCHESTER, NASSAU AND SUFFOLK.
   6.  "EMISSIONS  HOTSPOT" MEANS A LOCATION WHERE EMISSIONS OF REGULATED
 AIR CONTAMINANTS FROM SPECIFIC SOURCES MAY EXPOSE INDIVIDUALS AND  POPU-
 LATION  GROUPS  TO  ELEVATED  RISKS  OF  ADVERSE  HEALTH EFFECTS AND MAY
 CONTRIBUTE TO THE CUMULATIVE HEALTH RISKS OF EMISSIONS FROM OTHER SOURC-
 ES IN THE AREA.
   7. "EMISSIONS LEAKAGE" MEANS AN INCREASE IN EMISSIONS OUTSIDE  OF  THE
 STATE,  AS  A  RESULT  OF, OR IN CORRELATION WITH, THE IMPLEMENTATION OF
 MEASURES WITHIN THE STATE TO LIMIT SUCH EMISSIONS.
   8. "GREENHOUSE GAS" MEANS  CARBON  DIOXIDE,  METHANE,  NITROUS  OXIDE,
 HYDROFLUOROCARBONS, PERFLUOROCARBONS, SULFUR HEXAFLUORIDE, AND ANY OTHER
 SUBSTANCE  EMITTED  INTO  THE  AIR THAT MAY BE REASONABLY ANTICIPATED TO

 S. 7645                             5
 
 CAUSE OR CONTRIBUTE TO ANTHROPOGENIC CLIMATE CHANGE, WITH THE  EXCEPTION
 OF AGRICULTURAL EMISSIONS FROM LIVESTOCK.
   9.  "REGULATED  AIR  CONTAMINANT"  SHALL  HAVE  THE SAME MEANING AS IN
 SUBDIVISION 22 OF SECTION 19-0107 OF THIS ARTICLE.
   10. "SOCIAL COST OF POLLUTION" MEANS THE COST TO NEW YORK RESIDENTS OF
 EMITTING ONE TON, OR ANOTHER UNIT OF MEASUREMENT DEEMED  APPROPRIATE  BY
 THE COMMISSIONER, OF A GIVEN REGULATED AIR CONTAMINANT.
   11.  "UPSTATE  REGION"  MEANS  ALL  NEW YORK STATE COUNTIES OTHER THAN
 NASSAU, SUFFOLK, RICHMOND, KINGS, QUEENS, NEW YORK, BRONX AND  WESTCHES-
 TER.
   12.  "WORKING  GROUP"  MEANS  THE CLIMATE JUSTICE WORKING GROUP ESTAB-
 LISHED UNDER SECTION 74-0103 OF THIS CHAPTER.
 § 19-1303. METHODOLOGY AND AIR POLLUTANT PRICE INDEX.
   1. NOT LATER THAN ONE YEAR AFTER THE EFFECTIVE DATE OF THIS TITLE, THE
 COMMISSIONER SHALL PUBLISH AN  INDEX  THAT  LISTS  THE  SOCIAL  COST  OF
 POLLUTION  FOR ALL REGULATED AIR CONTAMINANTS, OR APPROPRIATE SUB-GROUP-
 ING THEREOF. AT THE SAME TIME, THE COMMISSIONER SHALL PUBLISH A  METHOD-
 OLOGY  FOR  DETERMINING  THE SOCIAL COST OF POLLUTION FOR EACH REGULATED
 AIR CONTAMINANT, OR APPROPRIATE SUB-GROUPING THEREOF. IN DETERMINING THE
 SOCIAL COST OF POLLUTION FOR A  GIVEN  REGULATED  AIR  CONTAMINANT,  THE
 COMMISSIONER SHALL CONSIDER, AT A MINIMUM:
   (A)  PUBLIC  HEALTH IMPACTS, INCLUDING: LOSS OF LIFE, LOSS OF WELFARE,
 EMPLOYMENT IMPACTS AND OTHER PUBLIC HEALTH IMPACTS;
   (B) IMPACTS TO PUBLIC AND  PRIVATE  PROPERTY,  INCLUDING  AGRICULTURAL
 PROPERTY;
   (C)  IMPACTS  TO  ECOSYSTEMS  AND THE ABILITY OF ECOSYSTEMS TO PROVIDE
 ECOSYSTEM SERVICES; AND
   (D) THE FULL LIFE-CYCLE OF IMPACTS.
   2. IF THE COMMISSIONER DEMONSTRATES THAT IT  IS  NOT  ADMINISTRATIVELY
 FEASIBLE  IN  THE  TIME  ALLOTTED  IN  SUBDIVISION  1 OF THIS SECTION TO
 COMPLETE A METHODOLOGY FOR EACH INDIVIDUAL REGULATED AIR CONTAMINANT, OR
 APPROPRIATE SUB-GROUPING THEREOF, THEN THE COMMISSIONER  MAY  DELAY  THE
 COMPLETION  OF  METHODOLOGIES  FOR SOME PORTION OF REGULATED AIR CONTAM-
 INANTS FOR FUTURE RULE-MAKINGS, PROVIDED THAT:
   (A) IN THE FIRST PUBLICATION OF SUCH METHODOLOGIES,  THE  COMMISSIONER
 COMPLETES  A METHODOLOGY, PURSUANT TO SUBDIVISION 1 OF THIS SECTION, FOR
 EACH OF THE FOLLOWING POLLUTANTS:
   (I) OXIDES OF NITROGEN;
   (II) VOLATILE ORGANIC COMPOUNDS;
   (III) SULFUR DIOXIDE;
   (IV) PARTICULATE MATTER;
   (V) CARBON MONOXIDE; AND
   (VI) LEAD;
   (B) IN THE FIRST PUBLICATION OF SUCH METHODOLOGIES,  THE  COMMISSIONER
 COMPLETES  A METHODOLOGY, PURSUANT TO SUBDIVISION 1 OF THIS SECTION, FOR
 EACH OF THE AIR CONTAMINANTS LISTED UNDER SECTION 112 OF THE ACT (42 USC
 SECTION 7412) THAT THE COMMISSIONER FINDS TO BE MOST DAMAGING TO  PUBLIC
 HEALTH IN NEW YORK, OF ALL AIR CONTAMINANTS LISTED UNDER SUCH SECTION;
   (C) THE COMMISSIONER DEMONSTRATES AND PUBLISHES, ALONG WITH THE PUBLI-
 CATION OF METHODOLOGIES DESCRIBED UNDER SUBDIVISION 1 OF THIS SECTION, A
 DESCRIPTION  OF  WHY  IT  IS  NOT  ADMINISTRATIVELY FEASIBLE IN THE TIME
 ALLOTTED IN SUBDIVISION 1 OF THIS SECTION TO COMPLETE A METHODOLOGY, FOR
 EACH INDIVIDUAL REGULATED AIR CONTAMINANT, OR  APPROPRIATE  SUB-GROUPING
 THEREOF; AND
   (D)  THE  COMMISSIONER SUBSEQUENTLY PUBLISHES AT LEAST FIVE ADDITIONAL
 METHODOLOGIES PER YEAR, UNTIL THAT DATE WHEN EACH REGULATED AIR  CONTAM-

 S. 7645                             6
 
 INANT,  OR  APPROPRIATE SUB-GROUPING THEREOF, HAS A COMPLETE METHODOLOGY
 ASCRIBED TO IT.
 § 19-1305. IMPLEMENTATION OF FEES.
   1.  NOT  LATER  THAN TWO YEARS AFTER THE EFFECTIVE DATE OF THIS TITLE,
 THE COMMISSIONER SHALL  INSTITUTE  A  SYSTEM  OF  COMPLIANCE  FEES  THAT
 REFLECT  THE INDEX ESTABLISHED UNDER SECTION 19-1303 OF THIS TITLE.  ALL
 COVERED SOURCES SHALL BE REQUIRED TO PAY THE FEE FOR EACH REGULATED  AIR
 CONTAMINANT EMITTED.
   2.  NOTWITHSTANDING  ANY INCONSISTENT PROVISIONS OF THE STATE ADMINIS-
 TRATIVE PROCEDURE ACT, SUCH FEE SHALL BE ESTABLISHED AS A RULE BY PUBLI-
 CATION IN THE ENVIRONMENTAL NOTICE BULLETIN NO LATER  THAN  THIRTY  DAYS
 AFTER  THE BUDGET BILLS MAKING APPROPRIATIONS FOR THE SUPPORT OF GOVERN-
 MENT ARE ENACTED OR JULY FIRST, WHICHEVER IS LATER, OF THE YEAR SUCH FEE
 WILL BE EFFECTIVE.
   3. BILLS ISSUED FOR THE FEE SHALL BE BASED ON ACTUAL EMISSIONS FOR THE
 PRIOR CALENDAR YEAR, AS DEMONSTRATED TO THE  DEPARTMENT'S  SATISFACTION,
 OR  IN  THE  ABSENCE  OF SUCH DEMONSTRATION, ON PERMITTED EMISSIONS, OR,
 WHERE THERE IS NO APPLICABLE  PERMIT,  ON  POTENTIAL  TO  EMIT.  PERSONS
 REQUIRED  TO  SUBMIT  AN EMISSIONS STATEMENT TO THE DEPARTMENT SHALL USE
 SUCH STATEMENT TO DEMONSTRATE ACTUAL EMISSIONS UNDER THIS SECTION.
   4. ANY PERSON REQUIRED TO PAY FEES IMPOSED PURSUANT  TO  THIS  SECTION
 MAY  ELECT  TO  BASE  SUCH  FEES ON THE LEVEL OF PERMITTED EMISSIONS SET
 FORTH IN A PERMIT, CERTIFICATE OR APPROVAL ISSUED  PURSUANT  TO  SECTION
 19-0311 OF THIS ARTICLE.
   5.  IF  A  CITY OR COUNTY IS DELEGATED THE AUTHORITY TO ADMINISTER THE
 OPERATING PERMIT PROGRAM ESTABLISHED PURSUANT TO SECTION 19-0311 OF THIS
 ARTICLE, IT MAY COLLECT THE FEES ESTABLISHED PURSUANT  TO  THIS  SECTION
 AND NO ADDITIONAL LIABILITY FOR FEES UNDER THIS SECTION SHALL ACCRUE FOR
 ANY SUCH SOURCE.
 § 19-1307. ALLOCATION OF REVENUES.
   1.  THE  COMMISSIONER  SHALL ESTABLISH A TRUST FUND TO BE KNOWN AS THE
 "AIR POLLUTION PRICING FUND", CONSISTING  OF  SUCH  AMOUNTS  AS  MAY  BE
 APPROPRIATED OR CREDITED TO SUCH FUND AS PROVIDED IN THIS SECTION.
   2.  (A) THERE IS HEREBY APPROPRIATED TO THE AIR POLLUTION PRICING FUND
 FOR  EACH  FISCAL  YEAR  FOLLOWING THE EFFECTIVE DATE OF THIS TITLE, THE
 TOTAL AMOUNT OF FEES RECEIVED UNDER THIS TITLE  DURING  SUCH  YEAR,  AND
 SUCH AMOUNTS SHALL BE ALLOCATED ACCORDINGLY:
   (I)  FORTY  PERCENT  OF  FUNDS  SHALL  GO TO THE ENVIRONMENTAL JUSTICE
 OFFICE OF THE DEPARTMENT;
   (II) TWENTY PERCENT OF FUNDS SHALL GO TO IMPROVING AND MAINTAINING THE
 NEW YORK STATE TITLE V EMISSIONS INVENTORY;
   (III) TWENTY PERCENT OF FUNDS SHALL GO TO IMPROVING AIR QUALITY  MONI-
 TORING,  INCLUDING AMBIENT AIR QUALITY MONITORING AND POINT SOURCE MONI-
 TORING; AND
   (IV) TWENTY PERCENT OF FUNDS SHALL BE ALLOCATED AT THE  DISCRETION  OF
 THE COMMISSIONER, BASED ON THE NEEDS OF THE DEPARTMENT.
   (B)  THE  AIR  POLLUTION  PRICING  FUND  SHALL  BE ADMINISTERED BY THE
 COMMISSIONER.
 § 19-1309. INVENTORY.
   NOT LATER THAN EIGHTEEN MONTHS AFTER THE EFFECTIVE DATE OF THIS TITLE,
 THE COMMISSIONER SHALL UPDATE AND PUBLISH  THE  INVENTORY  OF  EMISSIONS
 FROM TITLE V SOURCES TO:
   1.  ASSESS THE EXTENT TO WHICH GIVEN REGULATED AIR CONTAMINANTS, ESPE-
 CIALLY AIR CONTAMINANTS THAT HAVE HIGHLY  ADVERSE  HEALTH  IMPACTS,  ARE
 CO-EMITTED WITH GREENHOUSE GAS EMISSIONS;

 S. 7645                             7
 
   2.  ASSESS  THE  EXTENT  TO WHICH REGULATED AIR CONTAMINANTS THAT HAVE
 ESPECIALLY ADVERSE HEALTH IMPACTS ARE LIKELY TO BE REDUCED OVER TIME  AS
 A RESULT OF:
   (A) THE FEE ESTABLISHED IN SECTION 3040 OF THE TAX LAW; AND
   (B)  THE  INVESTMENT PROGRAMS ESTABLISHED IN TITLE 9-B OF ARTICLE 8 OF
 THE PUBLIC AUTHORITIES LAW;
   3. IDENTIFY AND ANALYZE EMISSIONS  HOTSPOTS  AND  CUMULATIVE  BURDENS,
 PERTAINING  TO  REGULATED  AIR CONTAMINANTS IN ORDER TO PRIORITIZE EMIS-
 SIONS REDUCTIONS IN THESE AREAS;
   4. ASSESS EMISSIONS AND POLLUTION-RELATED  HEALTH  IMPACTS  ASSOCIATED
 WITH THE TRANSPORTATION SECTOR; AND
   5. MAKE THE TITLE V EMISSIONS INVENTORY MORE ACCESSIBLE TO THE PUBLIC.
 § 19-1311.  TRANSPORTATION POLLUTION.
   1. NOT LATER THAN ONE YEAR AFTER THE EFFECTIVE DATE OF THIS TITLE, THE
 COMMISSIONER  SHALL  PREPARE  AND  APPROVE  A SCOPING PLAN OUTLINING THE
 DEPARTMENT'S RECOMMENDATIONS FOR ACCELERATING THE REDUCTION OF REGULATED
 AIR CONTAMINANTS FROM MOBILE SOURCES.
   2. THE DRAFT SCOPING PLAN SHALL BE DEVELOPED IN CONSULTATION WITH  THE
 WORKING GROUP AND OTHER STAKEHOLDERS.
   (A)  THE  DEPARTMENT SHALL PROVIDE MEANINGFUL OPPORTUNITIES FOR PUBLIC
 COMMENT FROM ALL PERSONS WHO WILL BE IMPACTED  BY  THE  PLAN,  INCLUDING
 PERSONS LIVING IN DISADVANTAGED COMMUNITIES.
   (B)  ON OR BEFORE ONE YEAR AFTER THE EFFECTIVE DATE OF THIS TITLE, THE
 DEPARTMENT SHALL SUBMIT THE FINAL SCOPING  PLAN  TO  THE  GOVERNOR,  THE
 SPEAKER  OF  THE  ASSEMBLY AND THE TEMPORARY PRESIDENT OF THE SENATE AND
 POST SUCH PLAN ON ITS WEBSITE.
   3. THE MEASURES AND ACTIONS CONSIDERED IN SUCH SCOPING PLAN SHALL AT A
 MINIMUM INCLUDE:
   (A) PERFORMANCE-BASED STANDARDS FOR MOBILE SOURCES  OF  REGULATED  AIR
 CONTAMINANTS;
   (B)  MARKET-BASED  MECHANISMS TO REDUCE EMISSIONS FROM MOBILE SOURCES,
 INCLUDING:
   (I) THE IMPOSITION OF FEES PER UNIT OF REGULATED AIR CONTAMINANT;
   (II) A ZONED SURCHARGE SYSTEM ON TRUCKING AND PORTS; AND
   (III) CONGESTION PRICING;
   (C) THE CREATION OF LOW EMISSION ZONES AND  THE  POLICIES  TO  PROMOTE
 ZERO-EMISSION  AND  LOW-EMISSION  TRANSPORTATION  OPTIONS, INCLUDING THE
 ELECTRIFICATION OF PORT FACILITIES AND FREIGHT TRANSPORTATION; AND
   (D) LAND-USE AND TRANSPORTATION PLANNING MEASURES  AIMED  AT  REDUCING
 EMISSIONS FROM MOBILE SOURCES.
   4.  NO  LATER THAN THREE YEARS AFTER THE EFFECTIVE DATE OF THIS TITLE,
 THE DEPARTMENT, AFTER PUBLIC WORKSHOPS AND CONSULTATION WITH THE WORKING
 GROUP, REPRESENTATIVES OF REGULATED ENTITIES,  AND  OTHER  STAKEHOLDERS,
 AND  NOT LESS THAN TWO PUBLIC HEARINGS, SHALL PROMULGATE RULES AND REGU-
 LATIONS TO ACCELERATE THE REDUCTION OF REGULATED AIR  CONTAMINANTS  FROM
 MOBILE SOURCES.
   (A)  THE  REGULATIONS  PROMULGATED  BY THE DEPARTMENT PURSUANT TO THIS
 SUBDIVISION MAY INCLUDE LEGALLY ENFORCEABLE EMISSIONS  LIMITS,  PERFORM-
 ANCE  STANDARDS,  MARKET-BASED  MECHANISMS OR MEASURES OR OTHER REQUIRE-
 MENTS TO CONTROL REGULATED AIR CONTAMINANT EMISSIONS FROM MOBILE  SOURC-
 ES. THE COMMISSIONER IS HEREBY AUTHORIZED TO ESTABLISH ANY SUCH POLICIES
 PURSUANT TO THIS SECTION.
   (B) IN PROMULGATING THESE REGULATIONS, THE DEPARTMENT SHALL:
   (I)  DESIGN AND IMPLEMENT ALL REGULATIONS IN A MANNER THAT SEEKS TO BE
 EQUITABLE, TO MINIMIZE COSTS AND TO MAXIMIZE THE TOTAL BENEFITS  TO  THE
 STATE;

 S. 7645                             8
 
   (II) ENSURE THAT EMISSIONS REDUCTIONS ACHIEVED ARE REAL, QUANTIFIABLE,
 VERIFIABLE, AND ENFORCEABLE BY THE DEPARTMENT;
   (III) ENSURE THAT ACTIVITIES UNDERTAKEN TO COMPLY WITH THE REGULATIONS
 DO NOT DISPROPORTIONATELY BURDEN DISADVANTAGED COMMUNITIES;
   (IV)  PRIORITIZE  MEASURES  TO MAXIMIZE NET REDUCTIONS OF EMISSIONS IN
 DISADVANTAGED COMMUNITIES;
   (V) PRIORITIZE MEASURES THAT ENCOURAGE EARLY ACTION  TO  REDUCE  EMIS-
 SIONS; AND
   (VI) MINIMIZE EMISSIONS LEAKAGE.
   5.  IF  ANY  OF THE POLICIES IMPLEMENTED BY THE DEPARTMENT PURSUANT TO
 THIS SECTION GENERATE STATE REVENUE, THE DEPARTMENT SHALL  ENSURE  THAT,
 AT  A  MINIMUM,  FORTY  PERCENT OF ANY FUNDS COLLECTED ARE INVESTED IN A
 MANNER WHICH WILL BENEFIT DISADVANTAGED COMMUNITIES, CONSISTENT WITH THE
 PURPOSES OF THIS TITLE. THE DEPARTMENT SHALL CONSULT  WITH  THE  WORKING
 GROUP IN DEVELOPING AND CARRYING OUT SUCH INVESTMENTS.
 § 19-1313 REPORTING.
   1.  NOT  LATER  THAN  THREE YEARS FOLLOWING THE EFFECTIVE DATE OF THIS
 TITLE, AND EVERY TWO YEARS THEREAFTER, THE COMMISSIONER, IN  PARTNERSHIP
 WITH  THE WORKING GROUP, SHALL PRODUCE A REPORT ON THE IMPLEMENTATION OF
 THE POLICIES ESTABLISHED UNDER THIS TITLE. SUCH  REPORT  SHALL  INCLUDE,
 BUT NOT BE LIMITED TO:
   (A)  THE  EFFECTIVENESS  OF THE FEES ESTABLISHED IN SECTION 19-1305 OF
 THIS TITLE TO REDUCE REGULATED AIR  CONTAMINANTS  STATEWIDE  AND  WITHIN
 GEOGRAPHIC SUBDIVISIONS OF THE STATE;
   (B)  THE  EFFECTIVENESS  OF  THE  POLICIES  ESTABLISHED  UNDER SECTION
 19-1311 OF THIS TITLE TO REDUCE REGULATED AIR CONTAMINANTS  FROM  MOBILE
 SOURCES STATEWIDE AND WITHIN GEOGRAPHIC SUBDIVISIONS OF THE STATE;
   (C) AN OVERVIEW OF SOCIAL BENEFITS FROM THE REGULATIONS OR OTHER MEAS-
 URES  ESTABLISHED  PURSUANT TO THIS TITLE, INCLUDING REDUCTIONS IN REGU-
 LATED AIR CONTAMINANTS, AND OTHER BENEFITS TO THE ECONOMY,  ENVIRONMENT,
 AND PUBLIC HEALTH, INCLUDING WOMEN'S HEALTH;
   (D) AN OVERVIEW OF COMPLIANCE COSTS FOR REGULATED ENTITIES;
   (E)  AN  OVERVIEW OF ADMINISTRATIVE COSTS FOR THE DEPARTMENT AND OTHER
 STATE AGENCIES;
   (F) WHETHER THE FEES ESTABLISHED IN THIS TITLE ARE EQUITABLE, MINIMIZE
 COSTS AND MAXIMIZE THE TOTAL BENEFITS TO THE STATE;
   (G) RECOMMENDATIONS AS TO CHANGES THAT SHOULD BE MADE  TO  ANY  POLICY
 PROMULGATED  PURSUANT  TO  THIS  TITLE, INCLUDING THE METHODOLOGY ESTAB-
 LISHED UNDER SECTION 19-1303 OF THIS TITLE, AND  THE  IMPLEMENTATION  OF
 THE FEES ESTABLISHED UNDER SECTION 19-1305 OF THIS TITLE; AND
   (H) RECOMMENDATIONS FOR FUTURE REGULATORY ACTIONS PERTAINING TO REDUC-
 ING REGULATED AIR CONTAMINANTS FROM MOBILE AND STATIONARY SOURCES.
   2.  BEFORE  FINALIZING  THE  REPORT DESCRIBED IN SUBDIVISION 1 OF THIS
 SECTION, THE COMMISSIONER SHALL ENSURE THAT THERE ARE MEANINGFUL  OPPOR-
 TUNITIES FOR PUBLIC PARTICIPATION, INCLUDING BY:
   (A)  ALLOWING  AT  LEAST ONE HUNDRED TWENTY DAYS FOR THE SUBMISSION OF
 PUBLIC COMMENT, FOLLOWING THE DATE OF THE PUBLICATION OF A DRAFT REPORT;
 AND
   (B) HOLDING AT LEAST FOUR  REGIONAL  PUBLIC  HEARINGS,  INCLUDING  TWO
 MEETINGS IN THE UPSTATE REGION AND TWO MEETINGS IN THE DOWNSTATE REGION,
 WITH  EMPHASIS ON MAXIMIZING PARTICIPATION AND ACCESSIBILITY FOR MEMBERS
 OF DISADVANTAGED COMMUNITIES.
   3. THE FINAL REPORT SHALL BE SUBMITTED TO THE GOVERNOR, THE  TEMPORARY
 PRESIDENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY, THE MINORITY LEAD-
 ER  OF  THE SENATE AND THE MINORITY LEADER OF THE ASSEMBLY, AND SHALL BE
 POSTED ON THE WEBSITE OF THE DEPARTMENT.

 S. 7645                             9
 
   § 4. The environmental conservation law is amended  by  adding  a  new
 article 74 to read as follows:
                                ARTICLE 74
                              CLIMATE CHANGE
 SECTION 74-0101. DEFINITIONS.
         74-0103. CLIMATE JUSTICE WORKING GROUP.
 § 74-0101. DEFINITIONS.
   FOR  THE  PURPOSES  OF THIS ARTICLE THE FOLLOWING TERMS SHALL HAVE THE
 FOLLOWING MEANINGS:
   1. "CLIMATE JUSTICE WORKING GROUP" OR "WORKING GROUP" SHALL  MEAN  THE
 BODY CREATED UNDER SECTION 74-0103 OF THIS ARTICLE.
   2. "DEPARTMENT" MEANS THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION.
   3.  "DISADVANTAGED COMMUNITIES" MEANS COMMUNITIES THAT BEAR BURDENS OF
 NEGATIVE  PUBLIC HEALTH EFFECTS, ENVIRONMENTAL POLLUTION, AND IMPACTS OF
 CLIMATE CHANGE, AND POSSESS CERTAIN SOCIOECONOMIC CRITERIA,  AS  IDENTI-
 FIED PURSUANT TO SECTION 74-0103 OF THIS ARTICLE.
   4. "GREENHOUSE GAS" SHALL HAVE THE SAME MEANING AS IN SUBDIVISION 8 OF
 SECTION 19-1301 OF THIS CHAPTER.
   5.  "REGULATED  AIR  CONTAMINANT"  SHALL  HAVE  THE SAME MEANING AS IN
 SUBDIVISION 22 OF SECTION 19-0107 OF THIS CHAPTER.
 § 74-0103. CLIMATE JUSTICE WORKING GROUP.
   1.  (A) THERE IS HEREBY CREATED WITHIN THE DEPARTMENT, NO  LATER  THAN
 SIX  MONTHS  AFTER THE EFFECTIVE DATE OF THIS ARTICLE, A CLIMATE JUSTICE
 WORKING GROUP. SUCH WORKING GROUP WILL BE COMPRISED  OF  REPRESENTATIVES
 FROM:  ENVIRONMENTAL JUSTICE COMMUNITIES, THE DEPARTMENT, THE DEPARTMENT
 OF HEALTH, THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY,
 AND THE DEPARTMENT OF LABOR. IN ADDITION TO ANY OTHER FUNCTIONS ASSIGNED
 TO THE WORKING GROUP IN THIS  ARTICLE,  THE  WORKING  GROUP  SHALL  ALSO
 PERFORM  THE  FUNCTIONS  ASSIGNED  TO  THE WORKING GROUP AS SET FORTH IN
 TITLE 13 OF ARTICLE 19 OF THIS CHAPTER, ARTICLE 25-D OF THE  LABOR  LAW,
 TITLE  9-B  OF  ARTICLE 8 OF THE PUBLIC AUTHORITIES LAW, AND ARTICLES 42
 AND 43 OF THE TAX LAW.
   (B) ENVIRONMENTAL JUSTICE COMMUNITY REPRESENTATIVES SHALL  BE  MEMBERS
 OF COMMUNITIES OF COLOR, LOW-INCOME COMMUNITIES, AND COMMUNITIES BEARING
 DISPROPORTIONATE  POLLUTION  AND  CLIMATE  CHANGE  BURDENS,  OR SHALL BE
 REPRESENTATIVES OF COMMUNITY-BASED ORGANIZATIONS WITH EXPERIENCE  AND  A
 HISTORY  OF  ADVOCACY ON ENVIRONMENTAL JUSTICE ISSUES, AND SHALL INCLUDE
 AT LEAST FIVE REPRESENTATIVES FROM  NEW  YORK  CITY  COMMUNITIES,  THREE
 REPRESENTATIVES  FROM  UPSTATE  URBAN COMMUNITIES, THREE REPRESENTATIVES
 FROM UPSTATE RURAL AND SUBURBAN COMMUNITIES, AND  THREE  REPRESENTATIVES
 FROM NASSAU, SUFFOLK, WESTCHESTER AND ROCKLAND COUNTIES. THE DEPARTMENT,
 IN  CONSULTATION  WITH THE WORKING GROUP, SHALL ESTABLISH DRAFT CRITERIA
 TO IDENTIFY DISADVANTAGED COMMUNITIES.
   (C) DISADVANTAGED COMMUNITIES SHALL BE IDENTIFIED BASED ON GEOGRAPHIC,
 PUBLIC HEALTH, ENVIRONMENTAL HAZARDS, AND SOCIOECONOMIC CRITERIA,  WHICH
 SHALL INCLUDE, BUT ARE NOT LIMITED TO:
   (I)  AREAS  BURDENED  BY  CUMULATIVE ENVIRONMENTAL POLLUTION AND OTHER
 HAZARDS THAT CAN LEAD TO NEGATIVE PUBLIC HEALTH EFFECTS;
   (II) AREAS WITH CONCENTRATIONS OF PEOPLE THAT  ARE  LOW  INCOME,  HIGH
 UNEMPLOYMENT, HAVE HIGH RENT BURDENS, HAVE LOW LEVELS OF HOME OWNERSHIP,
 HAVE LOW LEVELS OF EDUCATIONAL ATTAINMENT, OR ARE MEMBERS OF GROUPS THAT
 HAVE  HISTORICALLY  EXPERIENCED  DISCRIMINATION  ON THE BASIS OF RACE OR
 ETHNICITY; AND
   (III) AREAS VULNERABLE TO THE IMPACTS OF CLIMATE CHANGE SUCH AS FLOOD-
 ING, STORM SURGES, AND URBAN HEAT ISLAND EFFECTS.

 S. 7645                            10

   2. BEFORE FINALIZING THE CRITERIA FOR IDENTIFYING DISADVANTAGED COMMU-
 NITIES, THE DEPARTMENT SHALL PUBLISH DRAFT CRITERIA AND A DRAFT LIST  OF
 DISADVANTAGED  COMMUNITIES  AND  MAKE  SUCH INFORMATION AVAILABLE ON ITS
 WEBSITE.
   (A)  THE DEPARTMENT SHALL HOLD AT LEAST SEVEN REGIONAL PUBLIC HEARINGS
 ON THE DRAFT CRITERIA AND THE DRAFT LIST OF  DISADVANTAGED  COMMUNITIES,
 INCLUDING  THREE  HEARINGS  IN THE UPSTATE REGION, THREE HEARINGS IN THE
 DOWNSTATE REGION, AND ONE MEETING IN EITHER NASSAU OR  SUFFOLK  COUNTIES
 AND  SHALL  ALLOW AT LEAST ONE HUNDRED TWENTY DAYS FOR THE SUBMISSION OF
 PUBLIC COMMENT. FOR THE PURPOSES OF THIS PARAGRAPH, THE TERM  "DOWNSTATE
 REGION"  SHALL  MEAN  THE COUNTIES OF RICHMOND, KINGS, QUEENS, NEW YORK,
 BRONX AND WESTCHESTER, AND THE TERM  "UPSTATE  REGION"  SHALL  MEAN  ALL
 OTHER NEW YORK STATE COUNTIES OTHER THAN NASSAU AND SUFFOLK.
   (B)  THE  DEPARTMENT  SHALL  ENSURE THAT THERE ARE MEANINGFUL OPPORTU-
 NITIES FOR PUBLIC COMMENT FOR ALL PERSONS WHO WILL BE  IMPACTED  BY  THE
 CRITERIA,  INCLUDING  PERSONS  LIVING IN AREAS THAT MAY BE IDENTIFIED AS
 DISADVANTAGED COMMUNITIES UNDER THE PROPOSED CRITERIA.
   3. AFTER FOLLOWING THE PROCEDURES SET FORTH IN SUBDIVISIONS 1 AND 2 OF
 THIS SECTION, THE DEPARTMENT SHALL  ESTABLISH  FINAL  CRITERIA  AND  THE
 FINAL  LIST  OF  DISADVANTAGED  COMMUNITIES,  AND  MAKE SUCH INFORMATION
 AVAILABLE ON ITS WEBSITE.
   4. THE WORKING GROUP WILL MEET AT LEAST ANNUALLY TO REVIEW THE METHOD-
 OLOGY USED TO IDENTIFY DISADVANTAGED COMMUNITIES BY, AMONG OTHER THINGS,
 INCORPORATING NEW DATA AND SCIENTIFIC FINDINGS. THE  WORKING  GROUP  MAY
 ADVISE  THE  DEPARTMENT  TO  MODIFY  ITS  METHODOLOGY, CRITERIA OR LIST.
 FOLLOWING A MEETING OF THE WORKING GROUP, THE DEPARTMENT MAY MODIFY  ITS
 METHODOLOGY,  CRITERIA OR LIST. BEFORE THE DEPARTMENT MODIFIES ITS METH-
 ODOLOGY, CRITERIA OR LIST, IT SHALL PROVIDE FOR MEANINGFUL OPPORTUNITIES
 FOR PUBLIC COMMENT AS TO ANY SUCH MODIFICATION.
   § 5. The labor law is amended by adding a new article 8-B to  read  as
 follows:
                                ARTICLE 8-B
               LABOR AND JOB STANDARDS AND WORKER PROTECTION
 SECTION 228. LABOR AND JOB STANDARDS AND WORKER PROTECTION.
   §  228.  LABOR  AND JOB STANDARDS AND WORKER PROTECTION.  1. ALL STATE
 AGENCIES INVOLVED IN IMPLEMENTING THE CLIMATE AND  COMMUNITY  INVESTMENT
 ACT  SHALL ASSESS AND IMPLEMENT STRATEGIES TO INCREASE EMPLOYMENT OPPOR-
 TUNITIES AND IMPROVE JOB QUALITY.  WITHIN ONE HUNDRED TWENTY DAYS OF THE
 EFFECTIVE DATE OF THIS ARTICLE, ALL STATE  AGENCIES,  OFFICES,  AUTHORI-
 TIES, AND DIVISIONS SHALL REPORT TO THE LEGISLATURE ON:
   (A) STEPS THEY WILL TAKE TO ENSURE COMPLIANCE WITH THIS SECTION; AND
   (B) REGULATIONS NECESSARY TO ENSURE THAT THEY PRIORITIZE THE STATEWIDE
 GOAL OF CREATING GOOD JOBS AND INCREASING EMPLOYMENT OPPORTUNITIES.
   2.   IN   CONSIDERING  AND  ISSUING  PERMITS,  LICENSES,  REGULATIONS,
 CONTRACTS, AND OTHER ADMINISTRATIVE APPROVALS AND DECISIONS PURSUANT  TO
 THE CLIMATE AND COMMUNITY INVESTMENT ACT AND IN OTHERWISE DISPERSING ANY
 PROCEEDS FROM THE FEE ESTABLISHED IN SECTION THREE THOUSAND FORTY OF THE
 TAX  LAW,  ALL STATE AGENCIES, OFFICES, AUTHORITIES, AND DIVISIONS SHALL
 APPLY THE FOLLOWING LABOR, TRAINING, AND JOB QUALITY STANDARDS TO PUBLIC
 WORKS PROJECTS IN RECEIPT OF MORE THAN ONE HUNDRED THOUSAND  DOLLARS  IN
 TOTAL FINANCIAL ASSISTANCE; PROJECTS WITH A TOTAL VALUE OF MORE THAN TEN
 MILLION DOLLARS; AND PRIVATELY-FINANCED PROJECTS ON PUBLIC PROPERTY:
   (A)  THE PAYMENT OF NO LESS THAN PREVAILING WAGES FOR ALL EMPLOYEES IN
 CONSTRUCTION AND BUILDING, CONSISTENT WITH ARTICLE EIGHT OF  THIS  CHAP-
 TER,  AND  BUILDING SERVICES, CONSISTENT WITH ARTICLE NINE OF THIS CHAP-
 TER;

 S. 7645                            11
 
   (B) THE INCLUSION OF CONTRACT LANGUAGE REQUIRING CONTRACTORS TO ESTAB-
 LISH LABOR HARMONY POLICIES; DISPUTE RESOLUTION  MECHANISMS;  PREVAILING
 WAGE   COMPLIANCE;   SAFETY  POLICIES;  WORKERS  COMPENSATION  INSURANCE
 (INCLUDING REVIEW OF CONTRACTOR EXPERIENCE RATING  AND  OTHER  FACTORS);
 AND APPRENTICESHIP PROGRAMS APPROPRIATE FOR CRAFTS EMPLOYED. PROCUREMENT
 RULES  SHOULD  ENCOURAGE  BUNDLING  OF  SMALL  CONTRACTS AND PROJECTS TO
 IMPROVE THE EFFICIENCY OF COMPLIANCE;
   (C) A REQUIREMENT THAT ALL CONTRACTORS AND  SUBCONTRACTORS,  INCLUDING
 THOSE  THAT PARTICIPATE IN POWER PURCHASE AGREEMENTS, ENERGY PERFORMANCE
 CONTRACTS, OR OTHER  SIMILAR  PROGRAMS,  PARTICIPATE  IN  APPRENTICESHIP
 PROGRAMS  IN  THE  TRADES  IN WHICH THEY ARE PERFORMING WORK; THAT THERE
 SHALL BE THE MAXIMUM USE OF  APPRENTICES  AS  PER  DEPARTMENT  OF  LABOR
 APPROVED RATIOS; THAT THERE SHALL BE ENCOURAGEMENT OF AFFILIATED PRE-AP-
 PRENTICE  DIRECT  ENTRY  PROGRAMS,  INCLUDING,  BUT  NOT LIMITED TO, EJM
 CONSTRUCTION SKILLS, NEW YORK CITY HELMETS TO  HARDHATS,  AND  NONTRADI-
 TIONAL  EMPLOYMENT  FOR  WOMEN (NEW) FOR THE RECRUITMENT OF LOCAL AND/OR
 DISADVANTAGED WORKERS; AND THAT EXISTING WORKFORCE DEVELOPMENT PROGRAMS,
 INCLUDING THOSE AT THE NEW YORK STATE ENERGY  RESEARCH  AND  DEVELOPMENT
 AUTHORITY, SHOULD BE MADE TO CONFORM TO THESE STANDARDS.
   3.  THE  COMMISSIONER,  THE FISCAL OFFICER AND OTHER RELEVANT AGENCIES
 SHALL PROMULGATE SUCH REGULATIONS AS  ARE  NECESSARY  TO  IMPLEMENT  AND
 ADMINISTER  COMPLIANCE  WITH THE PROVISIONS OF THIS ARTICLE. THE DEPART-
 MENT AND THE FISCAL OFFICER SHALL COORDINATE  WITH  LABOR  ORGANIZATIONS
 AND  LOCAL  AND  COUNTY LEVEL GOVERNMENTS TO IMPLEMENT A SYSTEM TO TRACK
 COMPLIANCE, ACCEPT REPORTS OF NON-COMPLIANCE FOR ENFORCEMENT ACTION, AND
 REPORT ANNUALLY ON THE ADOPTION OF THESE STANDARDS  TO  THE  LEGISLATURE
 STARTING  ONE  YEAR  FROM  THE  EFFECTIVE DATE OF THIS SECTION.  FOR THE
 PURPOSES OF THIS SUBDIVISION, "FISCAL OFFICER" SHALL MEAN THE INDUSTRIAL
 COMMISSIONER,  EXCEPT  FOR  CONSTRUCTION  AND  BUILDING   SERVICE   WORK
 PERFORMED  BY  OR  ON  BEHALF  OF A CITY, IN WHICH CASE "FISCAL OFFICER"
 SHALL MEAN THE COMPTROLLER OR OTHER ANALOGOUS OFFICER OF SUCH CITY.
   (A) THE PROVISIONS OF ANY  CONTRACT  BY  THE  RECIPIENT  OF  FINANCIAL
 ASSISTANCE  PERTAINING  TO  PREVAILING  WAGES  ARE  TO  BE  CONSIDERED A
 CONTRACT FOR THE BENEFIT OF CONSTRUCTION AND BUILDING  SERVICE  WORKERS,
 UPON  WHICH SUCH WORKERS SHALL HAVE THE RIGHT TO MAINTAIN ACTION FOR THE
 DIFFERENCE BETWEEN THE PREVAILING WAGE RATE OF PAY, BENEFITS,  AND  PAID
 LEAVE  AND  THE RATES OF PAY, BENEFITS, AND PAID LEAVE ACTUALLY RECEIVED
 BY THEM, INCLUDING ATTORNEYS' FEES.
   (B) (I) WHERE A RECIPIENT OF FINANCIAL ASSISTANCE  CONTRACTS  BUILDING
 SERVICE WORK TO A BUILDING SERVICE CONTRACTOR, THE CONTRACTOR IS HELD TO
 THE  SAME OBLIGATIONS WITH RESPECT TO PREVAILING WAGES AS THE RECIPIENT.
 THE RECIPIENT MUST INCLUDE TERMS ESTABLISHING THIS OBLIGATION WITHIN ANY
 CONTRACT SIGNED WITH A CONTRACTOR.
   (II)  WHERE  A  RECIPIENT  OF  FINANCIAL  ASSISTANCE   CONTRACTS   FOR
 CONSTRUCTION,  EXCAVATION,  DEMOLITION,  REHABILITATION,  REPAIR,  RENO-
 VATION, ALTERATION OR IMPROVEMENT TO A SUBCONTRACTOR, THE  SUBCONTRACTOR
 SHALL  BE  HELD TO THE SAME OBLIGATIONS WITH RESPECT TO PREVAILING WAGES
 AS THE RECIPIENT. THE RECIPIENT MUST  INCLUDE  TERMS  ESTABLISHING  THIS
 OBLIGATION WITHIN ANY CONTRACT SIGNED WITH A SUBCONTRACTOR.
   4.  FOR THE PURPOSES OF THIS SECTION, "FINANCIAL ASSISTANCE" MEANS ANY
 PROVISION OF PUBLIC FUNDS TO  ANY  PERSON,  INDIVIDUAL,  PROPRIETORSHIP,
 PARTNERSHIP,  JOINT  VENTURE,  CORPORATION,  LIMITED  LIABILITY COMPANY,
 TRUST, ASSOCIATION, ORGANIZATION, OR OTHER ENTITY THAT  RECEIVES  FINAN-
 CIAL  ASSISTANCE, OR ANY ASSIGNEE OR SUCCESSOR IN INTEREST OF REAL PROP-
 ERTY IMPROVED OR  DEVELOPED  WITH  FINANCIAL  ASSISTANCE,  FOR  ECONOMIC
 DEVELOPMENT WITHIN THE STATE, INCLUDING BUT NOT LIMITED TO CASH PAYMENTS

 S. 7645                            12
 
 OR  GRANTS,  BOND FINANCING, TAX ABATEMENTS OR EXEMPTIONS, INCLUDING BUT
 NOT LIMITED TO ABATEMENTS OR EXEMPTIONS  FROM  REAL  PROPERTY,  MORTGAGE
 RECORDING,  SALES  AND USE TAXES, OR THE DIFFERENCE BETWEEN ANY PAYMENTS
 IN  LIEU  OF  TAXES  AND THE AMOUNT OF REAL PROPERTY OR OTHER TAXES THAT
 WOULD HAVE BEEN DUE IF THE PROPERTY WERE NOT EXEMPTED FROM  SUCH  TAXES,
 TAX  INCREMENT  FINANCING,  FILING  FEE WAIVERS, ENERGY COST REDUCTIONS,
 ENVIRONMENTAL REMEDIATION COSTS, WRITE-DOWNS  IN  THE  MARKET  VALUE  OF
 BUILDINGS  OR  LAND, OR THE COST OF CAPITAL IMPROVEMENTS RELATED TO REAL
 PROPERTY FOR WHICH THE  STATE  WOULD  NOT  PAY  ABSENT  THE  DEVELOPMENT
 PROJECT, AND INCLUDES BOTH DISCRETIONARY AND AS OF RIGHT ASSISTANCE. THE
 PROVISIONS  OF  THIS SECTION SHALL ONLY APPLY TO PROJECTS RECEIVING MORE
 THAN  ONE  HUNDRED  THOUSAND  DOLLARS  IN  TOTAL  FINANCIAL  ASSISTANCE,
 PROJECTS WITH A TOTAL PROJECT VALUE OF MORE THAN TEN MILLION DOLLARS AND
 PRIVATELY-FINANCED PROJECTS ON PUBLIC PROPERTY.
   5. THE COMMISSIONER SHALL EVALUATE WHETHER THERE ARE ADDITIONAL STAND-
 ARDS  THAT COULD BE APPLIED TO INCREASE WAGE AND BENEFIT STANDARDS OR TO
 ENCOURAGE A SAFE, WELL-TRAINED, AND ADEQUATELY COMPENSATED WORKFORCE.
   6. THE COMMISSIONER, IN CONSULTATION WITH THE REGIONAL ECONOMIC DEVEL-
 OPMENT COUNCILS, SHALL PROMULGATE SUCH REGULATIONS AND ENTER  INTO  SUCH
 AGREEMENTS  AS  ARE NECESSARY TO ENFORCE COMMUNITY WORKFORCE AGREEMENTS,
 PROJECT LABOR AGREEMENTS OR COMMUNITY BENEFITS AGREEMENTS THAT INCLUDE:
   (A) LOCAL AND TARGETED HIRING STANDARDS;
   (B) THE UTILIZATION OF MINORITY- OR WOMEN-OWNED BUSINESS  ENTERPRISES;
 AND
   (C)  ANY  RELEVANT  ADDITIONAL STANDARDS PROVIDED FOR IN THIS SECTION.
 FOR THE PURPOSES OF THIS SUBDIVISION, A "MINORITY- OR WOMAN-OWNED ENTER-
 PRISE" SHALL HAVE THE SAME MEANING AS SUBDIVISION FIVE OF SECTION  NINE-
 TEEN HUNDRED FIVE OF THE PUBLIC AUTHORITIES LAW.
   7.  THE  DEPARTMENT  SHALL DEVELOP AGREEMENTS IN THE REGION AND ENSURE
 THAT THE STANDARDS UNDER THIS ARTICLE ARE APPLIED TO ALL PROJECTS IN THE
 REGION RECEIVING FINANCIAL ASSISTANCE FROM ANY PROGRAM PURSUANT  TO  THE
 CLIMATE  AND  COMMUNITY  INVESTMENT  ACT. THE REGULATIONS PROMULGATED IN
 SUCH ARTICLE SHALL PROVIDE THAT PROJECTS OVER ONE  MILLION  DOLLARS  MAY
 NEGOTIATE  THEIR  OWN  PROJECT  LABOR  AGREEMENTS  OR COMMUNITY BENEFITS
 AGREEMENTS WITH MUNICIPALITIES AND CONSTITUENCY BASED  ORGANIZATIONS  AS
 PARTIES.
   8.  NOTHING  SET  FORTH  IN THIS SECTION SHALL BE CONSTRUED TO IMPEDE,
 INFRINGE, OR DIMINISH THE RIGHTS AND BENEFITS WHICH ACCRUE TO  EMPLOYEES
 THROUGH  BONA FIDE COLLECTIVE BARGAINING AGREEMENTS, OR OTHERWISE DIMIN-
 ISH THE INTEGRITY OF THE EXISTING COLLECTIVE BARGAINING RELATIONSHIP.
   9. NOTHING SET FORTH IN THIS SECTION SHALL PRECLUDE A LOCAL GOVERNMENT
 FROM SETTING ADDITIONAL STANDARDS THAT EXPAND ON THESE STATEWIDE  STAND-
 ARDS.
   §  6. The labor law is amended by adding a new article 25-D to read as
 follows:
                                ARTICLE 25-D
          CLIMATE CHANGE JUST TRANSITION FOR IMPACTED WORKERS AND
                            COMMUNITY ASSURANCE
 SECTION 863. DEFINITIONS.
         863-A. WORKER AND COMMUNITY ASSURANCE BOARD.
         863-B. ESTABLISHMENT OF WORKER AND COMMUNITY ASSURANCE PROGRAM.
         863-C. ADMINISTRATION BY THE COMMISSIONER.
         863-D. ALLOCATION OF FUNDS.
         863-E. SELECTION PROCESS.
         863-F. DESIGNATION OF SIGNIFICANT IMPACT.
         863-G. REPORTING.

 S. 7645                            13
 
   § 863. DEFINITIONS. FOR THE PURPOSES OF THIS  ARTICLE,  THE  FOLLOWING
 TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   1.  "AUTHORITY"  SHALL  HAVE THE SAME MEANING AS IN SUBDIVISION TWO OF
 SECTION EIGHTEEN HUNDRED FIFTY-ONE OF THE PUBLIC AUTHORITIES LAW.
   2. "BOARD" MEANS THE WORKER AND COMMUNITY ASSURANCE BOARD  ESTABLISHED
 UNDER THIS ARTICLE.
   3. "CHAIR" MEANS THE CHAIR OF THE AUTHORITY.
   4. "COMMISSIONER" MEANS THE COMMISSIONER OF THE DEPARTMENT OF LABOR.
   5. "CONSTITUENCY-BASED ORGANIZATION" SHALL HAVE THE SAME MEANING AS IN
 SUBDIVISION  THREE  OF SECTION EIGHTEEN HUNDRED NINETY-ONE OF THE PUBLIC
 AUTHORITIES LAW.
   6. "DEPARTMENT" MEANS THE DEPARTMENT OF LABOR.
   7. "DIRECTOR" MEANS THE DIRECTOR OF THE OFFICE OF CLIMATE AND COMMUNI-
 TY INVESTMENT ESTABLISHED UNDER TITLE NINE-B OF  ARTICLE  EIGHT  OF  THE
 PUBLIC AUTHORITIES LAW.
   8.  "DISADVANTAGED COMMUNITIES" MEANS COMMUNITIES THAT BEAR BURDENS OF
 NEGATIVE PUBLIC HEALTH EFFECTS, ENVIRONMENTAL POLLUTION AND  IMPACTS  OF
 CLIMATE  CHANGE,  AND POSSESS CERTAIN SOCIOECONOMIC CRITERIA, AS IDENTI-
 FIED PURSUANT TO SECTION 74-0103 OF THE ENVIRONMENTAL CONSERVATION LAW.
   9. "DISPLACED WORKER" MEANS AN INDIVIDUAL WHO IS  A  RESIDENT  OF  NEW
 YORK  STATE  AND  HAS BEEN TERMINATED OR HAS RECEIVED A NOTICE OF TERMI-
 NATION AS A RESULT OF A PERMANENT FACILITY CLOSURE.
   10. "ELIGIBLE APPLICANT" MEANS A MUNICIPALITY, LABOR UNION,  COMMUNITY
 COLLEGE,  LOCAL  SCHOOL  DISTRICT,  OR  CONSTITUENCY-BASED  ORGANIZATION
 LOCATED IN AN IMPACTED COMMUNITY.
   11. "GREENHOUSE GAS" SHALL HAVE THE SAME  MEANING  AS  IN  SUBDIVISION
 EIGHT OF SECTION 19-1301 OF THE ENVIRONMENTAL CONSERVATION LAW.
   12.  "LABOR  ORGANIZATION"  MEANS ANY ORGANIZATION WHICH EXISTS AND IS
 CONSTITUTED FOR THE PURPOSE, IN WHOLE OR IN PART, OF COLLECTIVE BARGAIN-
 ING, OR OF DEALING WITH EMPLOYERS CONCERNING GRIEVANCES, TERMS OR CONDI-
 TIONS OF EMPLOYMENT, OR OF OTHER MUTUAL AID OR PROTECTION AND  WHICH  IS
 NOT A COMPANY UNION AS DEFINED HEREIN.
   13.  "PERMANENT  FACILITY  CLOSURE"  MEANS THE PERMANENT SHUTDOWN OF A
 SINGLE SITE OF EMPLOYMENT, OR ONE OR MORE FACILITIES OR OPERATING  UNITS
 WITHIN  A  SINGLE  SITE  OF  EMPLOYMENT,  IF  THE SHUTDOWN RESULTS IN AN
 EMPLOYMENT LOSS AT THE SINGLE SITE OF EMPLOYMENT DURING  ANY  THIRTY-DAY
 PERIOD.
   14.  "PROGRAM" MEANS THE WORKER AND COMMUNITY ASSURANCE PROGRAM ESTAB-
 LISHED UNDER THIS ARTICLE.
   15. "TRUST" MEANS THE WORKER AND COMMUNITY ASSURANCE TRUST ESTABLISHED
 UNDER SUBDIVISION FOUR OF SECTION THREE THOUSAND FORTY-SIX  OF  THE  TAX
 LAW.
   16.  "WORKING  GROUP"  MEANS THE CLIMATE JUSTICE WORKING GROUP CREATED
 PURSUANT TO SECTION 74-0103 OF THE ENVIRONMENTAL CONSERVATION LAW.
   § 863-A. WORKER AND COMMUNITY ASSURANCE BOARD. THERE IS HEREBY CREATED
 NO LATER THAN SIX MONTHS AFTER THE EFFECTIVE DATE  OF  THIS  ARTICLE,  A
 "WORKER AND COMMUNITY ASSURANCE BOARD". SUCH BOARD WILL BE COMPRISED OF:
 THE  COMMISSIONER,  THE  STATE COMPTROLLER, THE COMMISSIONER OF ENVIRON-
 MENTAL CONSERVATION, THE CHAIR, TWO MEMBERS OF CONSTITUENCY-BASED ORGAN-
 IZATIONS, TWO REPRESENTATIVES OF LABOR ORGANIZATIONS, AND ONE  REPRESEN-
 TATIVE EXPERT IN ECONOMIC DEVELOPMENT. THE BOARD SHALL BE CHAIRED BY THE
 COMMISSIONER.
   §  863-B.  ESTABLISHMENT  OF  WORKER  AND COMMUNITY ASSURANCE PROGRAM.
 THERE IS HEREBY ESTABLISHED WITHIN THE  DEPARTMENT,  A  PROGRAM,  TO  BE
 IMPLEMENTED BY THE COMMISSIONER. THE PURPOSE OF THE PROGRAM IS TO:

 S. 7645                            14
 
   1.  DISBURSE  FUNDS  FROM  THE  TRUST,  PURSUANT  TO  THIS SECTION AND
 SECTIONS EIGHT HUNDRED SIXTY-THREE-D AND EIGHT HUNDRED SIXTY-THREE-E  OF
 THIS ARTICLE;
   2.  PROVIDE SUPPORT FOR DISPLACED WORKERS, EITHER DIRECTLY, OR THROUGH
 PROGRAMS ADMINISTERED BY ELIGIBLE  APPLICANTS,  FOR  UP  TO  FIVE  YEARS
 INCLUDING,  BUT  NOT  LIMITED  TO: EMPLOYMENT GUARANTEES; RETRAINING AND
 PLACEMENT IN PUBLIC OR PRIVATE SECTOR POSITIONS; INCOME SUPPORT; PENSION
 SUPPORT; EARLY RETIREMENT; TRANSITIONAL SUPPORT INCLUDING BUT NOT LIMIT-
 ED TO SKILLS TRAINING, JOB COUNSELING, TUITION SUPPORT,  AND  ON-THE-JOB
 TRAINING; AND SUPPORT FOR IMPACTED WORKERS TO START EMPLOYEE-OWNED BUSI-
 NESSES.  EARLY  RETIREMENT  OR  INCOME SUPPORT, AT A COMPARABLE LEVEL TO
 THEIR LOST WAGES, SHALL BE OFFERED WHENEVER  POSSIBLE.  EACH  INDIVIDUAL
 DISPLACED WORKER WILL RECEIVE AT LEAST ONE FORM OF SUCH ASSISTANCE.
   3.  PROVIDE  SUPPORT  FOR  COMMUNITIES EITHER THROUGH LOCAL GOVERNMENT
 ENTITIES OR NON-PROFITS TO REPLACE LOST PAYMENT IN-LIEU-OF TAXES (PILOT)
 AND LOCAL TAX REVENUE, REVENUE RAISED BY OR PAID  BY  THE  STATE  OR  AN
 EMPLOYER  TO  MUNICIPALITIES  OR  SCHOOL  DISTRICTS  (INCLUDING, BUT NOT
 LIMITED TO, CENTRAL SCHOOL DISTRICTS AND  CITY  SCHOOL  DISTRICTS),  AND
 OTHER  PUBLIC  FUNDING  THAT  IS BEING LOST AS A RESULT OF THE DISPLACED
 FACILITIES; AND
   4. FACILITATE THE EXPANSION OF EXISTING ECONOMIC DEVELOPMENT  PROGRAMS
 TO  ENABLE  COMMUNITIES  TO RESPOND TO PERMANENT FACILITY CLOSURE AND/OR
 MAJOR REDUCTIONS IN PROPERTY TAXES OR PILOT PAYMENTS. THIS CAN  INCLUDE,
 BUT  IS  NOT LIMITED TO: SUPPORT FOR INCUMBENT IMPACTED WORKERS TO START
 EMPLOYEE-OWNED BUSINESSES IN HOST COMMUNITIES;  AND  SUPPORT  FOR  OTHER
 ELEMENTS  OF  THE CLEAN, RENEWABLE ENERGY TRANSITION, SUCH AS DEPLOYMENT
 OF ENERGY STORAGE, RENEWABLE ENERGY GENERATION, ELECTRICAL  TRANSMISSION
 FACILITIES,  RESILIENCY  MEASURES,  AND OTHER INFRASTRUCTURE PROJECTS IN
 COMMUNITIES WHERE ENERGY-INTENSIVE FACILITIES ARE CLOSING.
   § 863-C. ADMINISTRATION BY THE COMMISSIONER. WITHIN SIX MONTHS OF  THE
 EFFECTIVE  DATE  OF  THIS ARTICLE, THE COMMISSIONER IS HEREBY AUTHORIZED
 AND DIRECTED TO ESTABLISH THE WORKER AND  COMMUNITY  ASSURANCE  PROGRAM.
 THE  COMMISSIONER  SHALL  IMPLEMENT THE PROGRAM IN CONSULTATION WITH THE
 BOARD AND SHALL:
   1. USE MONIES MADE AVAILABLE FOR THE PROGRAM PURSUANT TO SECTION EIGHT
 HUNDRED SIXTY-THREE-B OF THIS ARTICLE TO ACHIEVE  THE  PURPOSES  OF  THE
 PROGRAM;
   2.  ENTER  INTO  CONTRACTS WITH ELIGIBLE APPLICANTS AND OTHER ENTITIES
 THROUGH THE COMPETITIVE SELECTION PROCESS AUTHORIZED BY THIS ARTICLE;
   3. ENTER INTO CONTRACTS WITH  ONE  OR  MORE  PROGRAM  IMPLEMENTERS  TO
 PERFORM SUCH FUNCTIONS AS THE AUTHORITY DEEMS APPROPRIATE; AND
   4. EXERCISE SUCH OTHER POWERS AS ARE NECESSARY FOR THE PROPER ADMINIS-
 TRATION OF THE PROGRAM.
   §  863-D. ALLOCATION OF FUNDS. FUNDS FROM THE TRUST SHALL BE DISBURSED
 UNDER THE PROGRAM AND BE USED TO ENSURE A STABLE TRANSITION FOR  WORKERS
 AND COMMUNITIES IMPACTED BY THE TRANSITION TO A CARBON FREE ECONOMY.
   § 863-E. SELECTION PROCESS. THE DIRECTOR IS AUTHORIZED, WITHIN AMOUNTS
 APPROPRIATED,  TO  DISBURSE  FUNDS FROM THE TRUST ON A COMPETITIVE BASIS
 FOR APPROVED PROJECTS TO ELIGIBLE APPLICANTS AND PARTNERS.
   1. THE DIRECTOR, IN PARTNERSHIP WITH THE WORKING GROUP, SHALL  DEVELOP
 CRITERIA  AND  A  PROCESS  FOR  SELECTING PROJECT PROPOSALS SUBMITTED BY
 ELIGIBLE APPLICANTS UNDER THIS ARTICLE.
   2. PROPOSALS SHOULD CLEARLY ARTICULATE: THE PROGRAMS TO BE  SUPPORTED;
 THE  NUMBER  OF WORKERS IMPACTED; OVERALL EXPECTED FUNDING LEVEL; A PLAN
 TO ENGAGE THE PEOPLE MOST AFFECTED BY THE TRANSITION, INCLUDING  WORKERS
 AND  COMMUNITY  MEMBERS;  A  PLAN FOR ANY NECESSARY SITE REMEDIATION AND

 S. 7645                            15

 ECONOMIC DEVELOPMENT; AND A PLAN TO ENSURE THAT FUNDING IS TIME  LIMITED
 TO NO MORE THAN TEN YEARS OF DIRECT SUPPORT FROM THE TRUST.
   3.  THE  COMMISSIONER  SHALL  GIVE PRIORITY TO PROPOSALS FROM ELIGIBLE
 APPLICANTS THAT ADDRESS WORKERS IN ENERGY INTENSIVE INDUSTRIES THAT HAVE
 SIGNIFICANT EMPLOYMENT AND TAX BASE  IMPACTS  IN  AFFECTED  COMMUNITIES,
 PURSUANT TO TITLE NINE-B OF ARTICLE EIGHT OF THE PUBLIC AUTHORITIES LAW.
   4.  IN  DEVELOPING  THE CRITERIA, THE COMMISSIONER AND THE BOARD SHALL
 ATTEMPT TO MAXIMIZE: THE NUMBER OF PEOPLE FROM AFFECTED COMMUNITIES THAT
 WILL BENEFIT FROM ANY IMPLEMENTED PROJECT AND FROM THE SUITE OF PROJECTS
 ACROSS THE PROGRAM; THE DEGREE OF DIRECT BENEFITS DELIVERED TO  AFFECTED
 COMMUNITIES;  GREENHOUSE  GAS AND EMISSIONS REDUCTIONS FOR REGULATED AIR
 CONTAMINANTS; AND, TO THE EXTENT POSSIBLE,  THE  LEVERAGING  OF  PRIVATE
 CAPITAL.
   5.  THE  COMMISSIONER  SHALL  ENCOURAGE ELIGIBLE APPLICANTS TO PROPOSE
 PROJECTS IN PARTNERSHIP WITH OTHER ELIGIBLE APPLICANTS, AND IN  PARTNER-
 SHIP WITH THIRD-PARTY ENTITIES.
   6.  WHERE  POSSIBLE, THE COMMISSIONER SHALL AIM TO DISTRIBUTE FUNDS IN
 AN EQUITABLE MANNER BY REGION OF THE STATE.
   7. IF ADEQUATE FUNDING IS AVAILABLE,  THE  COMMISSIONER  MAY  CONSIDER
 PROPOSALS  RELATED  TO OTHER IMPACTS ASSOCIATED WITH CLIMATE CHANGE THAT
 HAVE THE EFFECT OF CAUSING JOB LOSSES, INCLUDING CLIMATE-RELATED NATURAL
 DISASTERS.
   8. THE COMMISSIONER SHALL ALLOCATE FUNDING ANNUALLY, OR AS  DETERMINED
 APPROPRIATE  BY THE COMMISSIONER FOR ENSURING CONTINUOUS FUNDING FOR THE
 NEEDS OF THE CHOSEN PROGRAMS AND PROJECTS.
   § 863-F. DESIGNATION OF SIGNIFICANT IMPACT. 1.  THE  COMMISSIONER,  IN
 COOPERATION  WITH  THE BOARD AND WORKING GROUP, SHALL ESTABLISH CRITERIA
 TO DETERMINE WHEN AN INDUSTRY HAS BECOME  SIGNIFICANTLY  IMPACTED  AS  A
 DIRECT RESULT OF POLICIES TO REDUCE GREENHOUSE GAS EMISSIONS IN NEW YORK
 STATE. THE COMMISSIONER SHALL IDENTIFY AN INITIAL SET OF INDUSTRIES THAT
 ARE  SIGNIFICANTLY  IMPACTED  AS  A DIRECT RESULT OF EMISSIONS REDUCTION
 POLICIES FOR THE PURPOSES OF IMPLEMENTING THIS SECTION.
   2. IN DESIGNING THE CRITERIA AND LISTING THE INDUSTRIES  DESCRIBED  IN
 SUBDIVISION ONE OF THIS SECTION, THE COMMISSIONER SHALL CONSIDER FACTORS
 SUCH AS:
   (A)  PERMANENT  FACILITY  CLOSURES  OR  THE CLOSURE OF BUSINESSES AS A
 RESULT OF REGULATORY  CHANGES  RELATED  TO  THE  CLIMATE  AND  COMMUNITY
 INVESTMENT ACT;
   (B)  SIGNIFICANT  JOB LOSSES ACROSS AN INDUSTRY AS A RESULT OF TECHNO-
 LOGICAL CHANGE IN ORDER TO ACHIEVE GREENHOUSE GAS  EMISSION  REDUCTIONS;
 OR
   (C)  LOSS  OF  PROPERTY  TAX  OR SCHOOL TAX REVENUE THAT WOULD LEAD TO
 LOCAL LAYOFFS OR SERVICE REDUCTIONS AS A RESULT  OF  REGULATORY  CHANGES
 RELATED TO SUCH ACT.
   3.  BEFORE FINALIZING THE CRITERIA FOR IDENTIFYING INDUSTRIES THAT ARE
 SIGNIFICANTLY IMPACTED AS A DIRECT RESULT OF CLIMATE CHANGE  POLICY  AND
 IDENTIFYING  A  LIST  OF  SIGNIFICANTLY  IMPACTED INDUSTRIES PURSUANT TO
 SUBDIVISION ONE OF THIS SECTION,  THE  COMMISSIONER  SHALL  ENSURE  THAT
 THERE  ARE  MEANINGFUL  OPPORTUNITIES  FOR  PUBLIC COMMENT, INCLUDING BY
 PERSONS WORKING IN POTENTIALLY  SIGNIFICANTLY  IMPACTED  INDUSTRIES  AND
 PERSONS  THAT MAY BE IDENTIFIED AS PART OF AFFECTED COMMUNITIES PURSUANT
 TO TITLE NINE-B OF ARTICLE EIGHT OF THE PUBLIC AUTHORITIES LAW,  INCLUD-
 ING BY:
   (A)  PUBLISHING  DRAFT  CRITERIA  AND  A  DRAFT  LIST OF SIGNIFICANTLY
 IMPACTED INDUSTRIES, AND MAKING SUCH INFORMATION AVAILABLE ON THE INTER-
 NET;

 S. 7645                            16

   (B) HOLDING AT LEAST SIX REGIONAL PUBLIC HEARINGS ON THE DRAFT  CRITE-
 RIA  AND  THE DRAFT LIST OF SIGNIFICANTLY IMPACTED INDUSTRIES, INCLUDING
 AT LEAST THREE MEETINGS IN THE UPSTATE REGION AND THREE MEETINGS IN  THE
 DOWNSTATE REGION; AND
   (C)  ALLOWING  AT  LEAST ONE HUNDRED TWENTY DAYS FOR THE SUBMISSION OF
 PUBLIC COMMENT, FOLLOWING THE DATE OF THE PUBLICATION OF DRAFT  CRITERIA
 DESCRIBED IN PARAGRAPH (A) OF THIS SUBDIVISION.
   4.  THE  COMMISSIONER,  IN  COOPERATION WITH THE BOARD AND THE WORKING
 GROUP SHALL MEET NO LESS THAN ANNUALLY TO REVIEW THE CRITERIA AND  METH-
 ODS  USED  TO IDENTIFY SIGNIFICANTLY IMPACTED INDUSTRIES, AND MAY MODIFY
 SUCH METHODS TO INCORPORATE NEW DATA AND SCIENTIFIC FINDINGS, SUBJECT TO
 THE SAME PROCESS REQUIREMENTS LISTED UNDER  SUBDIVISION  THREE  OF  THIS
 SECTION.
   5. AN INDUSTRY THAT HAS BEEN SIGNIFICANTLY IMPACTED AS A DIRECT RESULT
 OF  CLIMATE  CHANGE  POLICY,  OR  WORKERS  IN  AN INDUSTRY THAT HAS BEEN
 SIGNIFICANTLY IMPACTED AS A DIRECT RESULT OF CLIMATE CHANGE  POLICY  MAY
 ALSO BE IDENTIFIED BASED ON A PETITION FROM A MUNICIPALITY, LABOR UNION,
 OR CONSTITUENCY-BASED ORGANIZATION LOCATED IN OR ADJACENT TO AN IMPACTED
 COMMUNITY.
   § 863-G. REPORTING. 1. NO LATER THAN TWO YEARS FOLLOWING THE EFFECTIVE
 DATE  OF THIS ARTICLE, AND EVERY TWO YEARS THEREAFTER, THE COMMISSIONER,
 IN PARTNERSHIP WITH THE WORKING GROUP, SHALL PRODUCE  A  REPORT  ON  THE
 IMPLEMENTATION  OF  THE  PROGRAM  ESTABLISHED UNDER THIS ARTICLE AND THE
 EXTENT TO WHICH PROGRAM IMPLEMENTATION IS MEETING STATED  PROGRAM  GOALS
 AND PRIORITIES. SUCH REPORT SHALL INCLUDE BUT NOT BE LIMITED TO:
   (A)  REPORTING  ON THE EFFECTIVENESS OF THE POLICIES ESTABLISHED UNDER
 THIS ARTICLE TO THE LEGISLATURE AND  PUBLIC  ON  THE  JOB  CREATION  AND
 RETENTION IMPACTS;
   (B)  AN  OVERVIEW OF SOCIAL BENEFITS PURSUANT TO THE IMPLEMENTATION OF
 THIS SECTION, INCLUDING BENEFITS TO THE ECONOMY, ENVIRONMENT, AND PUBLIC
 HEALTH, INCLUDING WOMEN'S HEALTH;
   (C) AN OVERVIEW OF ADMINISTRATIVE COSTS FOR THE DEPARTMENT  AND  OTHER
 STATE AGENCIES;
   (D) RECOMMENDATIONS FOR FUTURE POLICY PERTAINING TO TRANSITION ASSIST-
 ANCE; AND
   (E)  DATA  IDENTIFYING  BOTH  WHO SUBMITTED PETITIONS AND WHO RECEIVED
 SUPPORT FROM THE PROGRAM AND WHY.
   2. BEFORE FINALIZING THE REPORT DESCRIBED IN SUBDIVISION ONE  OF  THIS
 SECTION,  THE COMMISSIONER SHALL ENSURE THAT THERE ARE MEANINGFUL OPPOR-
 TUNITIES FOR PUBLIC PARTICIPATION, INCLUDING BY:
   (A) ALLOWING AT LEAST ONE HUNDRED TWENTY DAYS FOR  THE  SUBMISSION  OF
 PUBLIC COMMENT, FOLLOWING THE DATE OF THE PUBLICATION OF A DRAFT REPORT;
 AND
   (B)  HOLDING  AT  LEAST  FOUR  REGIONAL PUBLIC HEARINGS, INCLUDING TWO
 MEETINGS IN THE UPSTATE REGION AND TWO MEETINGS IN THE DOWNSTATE REGION,
 WITH EMPHASIS ON MAXIMIZING PARTICIPATION AND ACCESSIBILITY FOR  MEMBERS
 OF DISADVANTAGED COMMUNITIES.
   3.  THE FINAL REPORT SHALL BE SUBMITTED TO THE GOVERNOR, THE TEMPORARY
 PRESIDENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY, THE MINORITY LEAD-
 ER OF THE SENATE AND THE MINORITY LEADER OF THE ASSEMBLY, AND  SHALL  BE
 POSTED ON THE WEBSITE OF THE DEPARTMENT.
   §  7.  Article  8 of the public authorities law is amended by adding a
 new title 9-B to read as follows:
 
                                 TITLE 9-B
                      CLIMATE CHANGE JUST TRANSITION

 S. 7645                            17
 
                                SUBTITLE I
                            GENERAL PROVISIONS
 SECTION 1901. DEFINITIONS.
         1902. COORDINATION OF PROGRAMS.
         1903. TRANSPARENCY AND ACCOUNTABILITY.
         1904. REPORT ON COMMUNITY OWNERSHIP.
 
                                SUBTITLE II
                         COMMUNITY JUST TRANSITION
 SECTION 1905. DEFINITIONS.
         1906. OFFICE OF CLIMATE AND COMMUNITY INVESTMENT.
         1907. ESTABLISHMENT OF COMMUNITY JUST TRANSITION PROGRAM.
         1908. ADMINISTRATION BY THE AUTHORITY.
         1909. ALLOCATION OF FUNDS.
         1910. SELECTION PROCESS.
         1911. IDENTIFICATION OF DISADVANTAGED COMMUNITY NEEDS.
         1912. COMMUNITY DECISION-MAKING AND ACCOUNTABILITY MECHANISMS.
         1913. CRITERIA  FOR  IMPLEMENTING COMMUNITY ACCOUNTABILITY MECH-
                 ANISMS.
         1914. CONSULTATION WITH THE WORKING GROUP.
 
                               SUBTITLE III
                      CLIMATE JOBS AND INFRASTRUCTURE
 SECTION 1915. DEFINITIONS.
         1916. ESTABLISHMENT OF CLIMATE JOBS AND INFRASTRUCTURE PROGRAM.
         1917. ADMINISTRATION BY THE AUTHORITY.
         1918. ALLOCATION OF FUNDS.
         1919. FUNDING INSTRUMENTS.
         1920. SELECTION PROCESS AND CRITERIA.
         1921. CONSULTATION WITH THE ADVISORY COUNCIL.
         1922. COMPREHENSIVE APPROACH TO EXISTING STRUCTURES.
   § 1901. DEFINITIONS. FOR THE PURPOSES OF THIS SUBTITLE, THE  FOLLOWING
 TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   1.  "ADVISORY  COUNCIL"  MEANS  THE ADVISORY COUNCIL ESTABLISHED UNDER
 TITLE NINE-A OF THIS ARTICLE.
   2. "AUTHORITY" SHALL HAVE THE SAME MEANING AS IN  SUBDIVISION  TWO  OF
 SECTION EIGHTEEN HUNDRED FIFTY-ONE OF THIS ARTICLE.
   3. "CONSTITUENCY-BASED ORGANIZATION" SHALL HAVE THE SAME MEANING AS IN
 SUBDIVISION  THREE  OF SECTION EIGHTEEN HUNDRED NINETY-ONE OF THIS ARTI-
 CLE.
   4. "REGULATED AIR CONTAMINANT" SHALL  HAVE  THE  SAME  MEANING  AS  IN
 SUBDIVISION TWENTY-TWO OF SECTION 19-0107 OF THE ENVIRONMENTAL CONSERVA-
 TION LAW.
   5. "DIRECTOR" MEANS THE DIRECTOR OF THE OFFICE OF CLIMATE AND COMMUNI-
 TY INVESTMENT ESTABLISHED UNDER THIS TITLE.
   6.  "DISADVANTAGED COMMUNITIES" MEANS COMMUNITIES THAT BEAR BURDENS OF
 NEGATIVE PUBLIC HEALTH EFFECTS, ENVIRONMENTAL POLLUTION, AND IMPACTS  OF
 CLIMATE  CHANGE,  AND POSSESS CERTAIN SOCIOECONOMIC CRITERIA, AS IDENTI-
 FIED PURSUANT TO SECTION 74-0103 OF THE ENVIRONMENTAL CONSERVATION LAW.
   7. "EMISSIONS LEAKAGE" MEANS AN INCREASE IN EMISSIONS OUTSIDE  OF  THE
 STATE,  AS  A  RESULT  OF, OR IN CORRELATION WITH, THE IMPLEMENTATION OF
 MEASURES WITHIN THE STATE TO LIMIT SUCH EMISSIONS.
   8. "GREENHOUSE GAS" SHALL HAVE THE  SAME  MEANING  AS  IN  SUBDIVISION
 EIGHT OF SECTION 19-1301 OF THE ENVIRONMENTAL CONSERVATION LAW.
   9.  "OFFICE"  MEANS  THE  OFFICE  OF  CLIMATE AND COMMUNITY INVESTMENT
 ESTABLISHED UNDER THIS TITLE.

 S. 7645                            18
 
   10. "MUNICIPALITY" SHALL HAVE THE SAME MEANING AS IN  SUBDIVISION  SIX
 OF SECTION FOUR HUNDRED EIGHTY-ONE OF THE EXECUTIVE LAW.
   11. "PRESIDENT" MEANS THE PRESIDENT OF THE AUTHORITY.
   12.  "TRIBAL  NATION"  MEANS  THOSE TRIBES, NATIONS OR OTHER ORGANIZED
 GROUPS OF PERSONS HAVING ORIGINS IN ANY OF THE ORIGINAL PEOPLES OF NORTH
 AMERICA RECOGNIZED IN THE STATE OR CONSIDERED BY THE  FEDERAL  SECRETARY
 OF  THE INTERIOR TO BE A TRIBAL NATION, INCLUDING THE FOLLOWING NEW YORK
 STATE TRIBAL NATIONS: CAYUGA NATION, ONEIDA NATION OF NEW YORK, ONONDAGA
 NATION, POOSPATUCK OR UNKECHAUGE NATION, SAINT REGIS MOHAWK TRIBE, SENE-
 CA NATION OF INDIANS, SHINNECOCK INDIAN NATION, TONAWANDA BAND OF SENECA
 AND TUSCARORA NATION.
   13. "WORKING GROUP" MEANS THE CLIMATE JUSTICE  WORKING  GROUP  CREATED
 PURSUANT TO SECTION 74-0103 OF THE ENVIRONMENTAL CONSERVATION LAW.
   14.  "COMMUNITY OWNERSHIP" MEANS PROJECTS, BUSINESSES AND LEGAL MODELS
 IN REGARD TO RENEWABLE ENERGY ASSETS AND SERVICES THAT ALLOW FOR ONE  OR
 MORE OF THE FOLLOWING:
   (A)  THE FLOW OF BENEFITS FROM ENERGY GENERATION AND CONSERVATION GOES
 DIRECTLY TO COMMUNITIES  AND  UTILITY  CUSTOMERS  WHILE  MINIMIZING  THE
 EXTRACTION OF BENEFITS AND PROFIT BY THIRD-PARTIES;
   (B)  ACCESS TO ENERGY INFRASTRUCTURE OWNERSHIP, INCLUDING ENERGY EFFI-
 CIENCY MEASURES AND SAVINGS, BY RENTERS, NON-PROFIT  ORGANIZATIONS,  AND
 INDIVIDUALS  WITH  A BROADER SPECTRUM OF INCOME AND CREDIT PROFILES THAN
 TRADITIONAL FINANCING ALLOWS FOR;
   (C) CREATION OF COOPERATIVE AND COOPERATIVE-LIKE  STRUCTURES  FOR  THE
 DEVELOPMENT AND OWNERSHIP OF ENERGY INFRASTRUCTURE; AND
   (D) OWNERSHIP BY INDIVIDUALS OR ORGANIZATIONS THAT ARE LOCATED WHERE A
 PROJECT IS SITED.
   §  1902.    COORDINATION  OF  PROGRAMS.  THE AUTHORITY SHALL UNDERTAKE
 ACTIONS TO ENSURE MAXIMUM COORDINATION  BETWEEN  EACH  OF  THE  PROGRAMS
 CREATED  UNDER  SECTION THREE THOUSAND FORTY-SIX OF THE TAX LAW, INCLUD-
 ING:
   1. CONDUCTING EACH PROGRAM SUCH THAT ALL THREE PROGRAMS TOGETHER:
   (A) MAXIMIZE THE TOTAL ECONOMIC AND SOCIAL BENEFITS TO NEW YORK;
   (B) MAXIMIZE ADMINISTRATIVE EFFICIENCY;
   (C) ACHIEVE  THE  MOST  COST-EFFECTIVE  AND  THE  GREATEST  AMOUNT  OF
 REDUCTIONS IN GREENHOUSE GAS EMISSIONS AND REGULATED AIR CONTAMINANTS;
   (D) ACHIEVE AN EQUITABLE DISTRIBUTION OF FUNDS;
   (E) MAXIMIZE BENEFITS TO DISADVANTAGED COMMUNITIES;
   (F) ENCOURAGE EARLY ACTION TO REDUCE EMISSIONS; AND
   (G) MINIMIZE EMISSIONS LEAKAGE.
   2.  NOT  LESS  FREQUENTLY THAN TWO TIMES ANNUALLY, THE AUTHORITY SHALL
 CONVENE A MEETING THAT INCLUDES THE DIRECTOR, THE WORKING GROUP, AND THE
 ADVISORY COUNCIL, TO DISCUSS OPTIONS FOR IMPROVING THE  COORDINATION  OF
 THE THREE PROGRAMS.
   3.  IN  CONSULTING  WITH  THE  WORKING  GROUP AND THE ADVISORY COUNCIL
 PURSUANT TO THIS SECTION, THE AUTHORITY SHALL ADHERE  TO  THE  FOLLOWING
 PROCEDURES:
   (A)  THE  AUTHORITY  SHALL  PROVIDE, TO ALL WORKING GROUP AND ADVISORY
 COUNCIL MEMBERS, NOTICE OF MEETINGS NOT LESS THAN THIRTY DAYS BEFORE THE
 DATE OF THE MEETING; AND
   (B) THE AUTHORITY SHALL PROVIDE, TO ALL  WORKING  GROUP  AND  ADVISORY
 COUNCIL  MEMBERS,  ELECTRONIC  COPIES  OR  HARD COPIES OF ANY WRITTEN OR
 OTHER INFORMATIONAL MATERIALS TO BE DISCUSSED AT  A  GIVEN  MEETING  NOT
 LESS THAN THIRTY DAYS PRIOR TO THE DATE OF THAT MEETING.
   §  1903.  TRANSPARENCY AND ACCOUNTABILITY.  1. NO LATER THAN TWO YEARS
 FOLLOWING THE EFFECTIVE DATE OF THIS TITLE, AND EVERY TWO  YEARS  THERE-

 S. 7645                            19
 
 AFTER,  THE  DIRECTOR,  IN  PARTNERSHIP  WITH  THE  WORKING GROUP, SHALL
 PRODUCE A REPORT ON THE IMPLEMENTATION OF THE PROGRAMS ESTABLISHED UNDER
 THIS TITLE AND THE EXTENT TO WHICH  PROGRAM  IMPLEMENTATION  IS  MEETING
 STATED  PROGRAM  GOALS AND PRIORITIES. SUCH REPORT SHALL INCLUDE BUT NOT
 BE LIMITED TO:
   (A) FOR THE PROGRAM UNDER SUBTITLE TWO OF THIS TITLE:
   (I) THE EXTENT TO WHICH NEEDS IDENTIFIED IN THE NEEDS  ASSESSMENT  ARE
 BEING MET;
   (II)  THE EFFECTIVENESS OF PROJECTS FUNDED UNDER THE PROGRAM IN REDUC-
 ING EMISSIONS OF GREENHOUSE GAS AND REGULATED AIR CONTAMINANTS;
   (III) THE EFFECTIVENESS OF PROJECTS FUNDED UNDER THE PROGRAM IN REDUC-
 ING THE ENERGY BURDENS OF HOUSEHOLDS IN DISADVANTAGED COMMUNITIES;
   (IV) THE GEOGRAPHIC DISTRIBUTION OF GRANTS MADE UNDER THE PROGRAM;
   (V) BARRIERS REPORTED BY ELIGIBLE APPLICANTS IN DEVELOPING COMPETITIVE
 PROPOSALS AND RECEIVING FUNDING;
   (VI) THE JOBS CREATED AS A  RESULT  OF  FUNDS  DISTRIBUTED  UNDER  THE
 PROGRAM;
   (VII) THE NUMBER OF PROJECTS FUNDED THAT ARE COMMUNITY-OWNED OR INCOR-
 PORATE  COMMUNITY OWNERSHIP, INCLUDING AN ASSESSMENT OF CONTINUED BARRI-
 ERS TO COMMUNITY OWNERSHIP.
   (B) FOR THE PROGRAM UNDER SUBTITLE THREE OF THIS TITLE:
   (I) THE NUMBER OF JOBS CREATED BY THE PROGRAM;
   (II) THE EFFECTIVENESS OF PROJECTS FUNDED UNDER THE PROGRAM IN  REDUC-
 ING EMISSIONS OF GREENHOUSE GAS AND REGULATED AIR CONTAMINANTS;
   (III)  THE EXTENT TO WHICH PROJECTS FUNDED UNDER THE PROGRAM LEVERAGED
 ADDITIONAL PRIVATE INVESTMENT;
   (IV) THE NUMBER OF MINORITY AND  WOMEN-OWNED  BUSINESSES  INVOLVED  IN
 PROJECTS FUNDED UNDER THE PROGRAM AS LEAD CONTRACTORS OR SUBCONTRACTORS,
 AND BARRIERS TO INVOLVEMENT BY SUCH BUSINESSES;
   (V) THE EFFECTIVENESS OF PROJECTS FUNDED UNDER THE PROGRAM IN REDUCING
 ENERGY  BURDENS  OF  HOUSEHOLDS,  INCLUDING  HOUSEHOLDS IN DISADVANTAGED
 COMMUNITIES.
   (C) FOR THE PROGRAM UNDER ARTICLES FORTY-TWO AND  FORTY-THREE  OF  THE
 TAX LAW:
   (I)  THE  ACTUAL  COSTS  OF  THE  FEE AS COMPARED TO THE AMOUNT OF THE
 REBATE;
   (II) THE OVERALL NET COST TO HOUSEHOLDS;
   (III) THE RATE OF PARTICIPATION IN THE PROGRAM BY ELIGIBLE  HOUSEHOLDS
 AND THE BARRIERS TO PARTICIPATION, IF ANY.
   2.  BEFORE  FINALIZING THE REPORT DESCRIBED IN SUBDIVISION ONE OF THIS
 SECTION, THE DIRECTOR SHALL ENSURE THAT THERE  ARE  MEANINGFUL  OPPORTU-
 NITIES FOR PUBLIC PARTICIPATION, INCLUDING BY:
   (A)  ALLOWING  AT  LEAST ONE HUNDRED TWENTY DAYS FOR THE SUBMISSION OF
 PUBLIC COMMENT, FOLLOWING THE DATE OF THE PUBLICATION OF A DRAFT REPORT;
 AND
   (B) HOLDING AT LEAST FOUR  REGIONAL  PUBLIC  HEARINGS,  INCLUDING  TWO
 MEETINGS IN THE UPSTATE REGION AND TWO MEETINGS IN THE DOWNSTATE REGION,
 WITH  EMPHASIS ON MAXIMIZING PARTICIPATION AND ACCESSIBILITY FOR MEMBERS
 OF DISADVANTAGED COMMUNITIES.
   3. THE FINAL REPORT SHALL BE SUBMITTED TO THE GOVERNOR, THE  TEMPORARY
 PRESIDENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY, THE MINORITY LEAD-
 ER  OF  THE SENATE AND THE MINORITY LEADER OF THE ASSEMBLY, AND SHALL BE
 POSTED ON THE WEBSITE OF THE AUTHORITY.
   § 1904. REPORT ON COMMUNITY OWNERSHIP.  1. NOT LATER  THAN  TWO  YEARS
 FOLLOWING THE EFFECTIVE DATE OF THIS SUBTITLE, AND EVERY TWO YEARS THER-
 EAFTER,  THE  AUTHORITY,  WITH  INPUT  FROM THE WORKING GROUP, THE STATE

 S. 7645                            20

 ENERGY PLANNING BOARD AND THE DEPARTMENT OF ENVIRONMENTAL  CONSERVATION,
 SHALL  PRODUCE A REPORT ON BARRIERS TO, AND OPPORTUNITIES FOR, COMMUNITY
 OWNERSHIP, INCLUDING:
   (A) A STUDY OF CONTRACTUAL AND PRICING MECHANISMS THAT MAKE SITING AND
 OWNERSHIP  OF  RENEWABLE  ENERGY  ASSETS  AND  SERVICES IN DISADVANTAGED
 COMMUNITIES MORE VIABLE AND SCALABLE.
   (B) RECOMMENDATIONS ON HOW TO INCREASE COMMUNITY OWNERSHIP  IN  DISAD-
 VANTAGED COMMUNITIES OF THE FOLLOWING SERVICES AND COMMODITIES:
   (I) DISTRIBUTED RENEWABLE ENERGY GENERATION;
   (II) UTILITY SCALE RENEWABLE ENERGY GENERATION;
   (III) ENERGY EFFICIENCY AND WEATHERIZATION INVESTMENTS; AND
   (IV)  ELECTRIC  GRID  INVESTMENTS,  INCLUDING ENERGY STORAGE AND SMART
 METERS.
   2. BEFORE FINALIZING THE REPORT DESCRIBED IN SUBDIVISION ONE  OF  THIS
 SECTION,  THE  DIRECTOR  SHALL ENSURE THAT THERE ARE MEANINGFUL OPPORTU-
 NITIES FOR PUBLIC PARTICIPATION, INCLUDING BY:
   (A) ALLOWING AT LEAST ONE HUNDRED TWENTY DAYS FOR  THE  SUBMISSION  OF
 PUBLIC COMMENT, FOLLOWING THE DATE OF THE PUBLICATION OF A DRAFT REPORT;
 AND
   (B)  HOLDING  AT  LEAST  FOUR  REGIONAL PUBLIC HEARINGS, INCLUDING TWO
 MEETINGS IN THE UPSTATE REGION AND TWO MEETINGS IN THE DOWNSTATE REGION,
 WITH EMPHASIS ON MAXIMIZING PARTICIPATION AND ACCESSIBILITY FOR  MEMBERS
 OF DISADVANTAGED COMMUNITIES.
   3.  THE FINAL REPORT SHALL BE SUBMITTED TO THE GOVERNOR, THE TEMPORARY
 PRESIDENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY, THE MINORITY LEAD-
 ER OF THE SENATE AND THE MINORITY LEADER OF THE ASSEMBLY, AND  SHALL  BE
 POSTED ON THE WEBSITE OF THE AUTHORITY.
   §  1905. DEFINITIONS. FOR THE PURPOSES OF THIS SUBTITLE, THE FOLLOWING
 TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   1. "DISADVANTAGED COMMUNITIES" SHALL  HAVE  THE  SAME  MEANING  AS  IN
 SUBDIVISION  THREE  OF SECTION 74-0101 OF THE ENVIRONMENTAL CONSERVATION
 LAW.
   2. "ELIGIBLE LEAD APPLICANT" MEANS A CONSTITUENCY-BASED  ORGANIZATION,
 A TRIBAL NATION, OR A MUNICIPALITY OR COUNTY IN CASES WHERE THERE IS NOT
 A CONSTITUENCY-BASED ORGANIZATION IN OR SERVING THE DISADVANTAGED COMMU-
 NITY OR COMMUNITIES.
   3.  "ELIGIBLE  SUB-APPLICANTS" MEANS PRIVATE SECTOR ENTITIES, ACADEMIC
 INSTITUTIONS, NON-PROFIT ORGANIZATIONS, OTHER STAKEHOLDERS, AND  MUNICI-
 PALITIES  AND  COUNTIES  IN  CASES  WHERE  THERE IS A CONSTITUENCY-BASED
 ORGANIZATION IN THE DISADVANTAGED COMMUNITY OR COMMUNITIES.
   4. "FUND" MEANS THE COMMUNITY JUST TRANSITION FUND  ESTABLISHED  UNDER
 SUBDIVISION ONE OF SECTION THREE THOUSAND FORTY-SIX OF THE TAX LAW.
   5.  "MINORITY-  OR  WOMEN-OWNED  BUSINESS  ENTERPRISE"  MEANS EITHER A
 "MINORITY-OWNED BUSINESS ENTERPRISE" AS DEFINED IN SUBDIVISION SEVEN  OF
 SECTION  THREE HUNDRED TEN OF THE EXECUTIVE LAW, OR A "WOMEN-OWNED BUSI-
 NESS ENTERPRISE", AS DEFINED IN SUBDIVISION FIFTEEN OF SUCH SECTION.
   6. "WORKING GROUP" MEANS THE CLIMATE JUSTICE WORKING GROUP ESTABLISHED
 UNDER SECTION 74-0103 OF THE ENVIRONMENTAL CONSERVATION LAW.
   7. "PROGRAM" MEANS THE COMMUNITY JUST TRANSITION  PROGRAM  ESTABLISHED
 UNDER THIS SUBTITLE.
   8.  "COMMUNITY  OWNERSHIP" SHALL HAVE THE SAME MEANING AS SET FORTH IN
 SUBDIVISION FOURTEEN OF SECTION NINETEEN HUNDRED ONE OF THIS TITLE.
   § 1906. OFFICE OF CLIMATE AND COMMUNITY INVESTMENT. 1.  THE  AUTHORITY
 SHALL  ESTABLISH,  NOT LATER THAN SIX MONTHS AFTER THE EFFECTIVE DATE OF
 THIS SUBTITLE, THE "OFFICE OF CLIMATE AND  COMMUNITY  INVESTMENT".  SUCH
 OFFICE  WILL  ADMINISTER  THE  FUND AND THE PROGRAM, AMONG OTHER DUTIES.

 S. 7645                            21

 SUCH OFFICE SHALL BE RESPONSIBLE FOR IMPLEMENTING NEW,  PROGRESSIVE  AND
 EQUITABLE  GRANT  OPPORTUNITIES  THAT  SUPPORT DISADVANTAGED COMMUNITIES
 TRANSITIONING TO A REGENERATIVE RENEWABLE  ENERGY  ECONOMY.  THE  OFFICE
 WILL  COLLABORATE  WITH THE WORKING GROUP TO DEVELOP AND ASSESS PROGRAMS
 AND, AS NEEDED, WITH THE OFFICE OF ENVIRONMENTAL JUSTICE OF THE  DEPART-
 MENT OF ENVIRONMENTAL CONSERVATION.
   2.  THE  OFFICE WILL ABIDE BY THE PRINCIPLES OF ENVIRONMENTAL JUSTICE,
 INCLUDING THE 1994 FEDERAL EXECUTIVE ORDER 12898 (IN RELATION  TO  ENVI-
 RONMENTAL  JUSTICE)  AND  THE JEMEZ PRINCIPLES OF DEMOCRATIC ORGANIZING.
 SUCH PRINCIPLES SHALL INCLUDE: BEING INCLUSIVE; PLACING AN  EMPHASIS  ON
 BOTTOM-UP  ORGANIZING;  LETTING  PEOPLE  SPEAK  FOR  THEMSELVES; WORKING
 TOGETHER IN SOLIDARITY AND MUTUALITY; BUILDING JUST RELATIONSHIPS  AMONG
 OURSELVES; AND MAKING A COMMITMENT TO SELF-TRANSFORMATION.
   3.  THE  OFFICE  SHALL BE LED BY A DIRECTOR. NOT LATER THAN SIX MONTHS
 AFTER THE FORMATION OF THE WORKING GROUP, THE WORKING GROUP SHALL  NOMI-
 NATE  NOT  LESS THAN THREE CANDIDATES FOR THE POSITION OF DIRECTOR.  NOT
 LATER THAN THREE MONTHS AFTER THE WORKING  GROUP  HAS  NOMINATED  CANDI-
 DATES, THE PRESIDENT SHALL SELECT THE DIRECTOR FROM THIS GROUP OF CANDI-
 DATES.
   §  1907.  ESTABLISHMENT OF COMMUNITY JUST TRANSITION PROGRAM. THERE IS
 HEREBY ESTABLISHED WITHIN THE AUTHORITY,  A  COMMUNITY  JUST  TRANSITION
 PROGRAM,  TO  BE IMPLEMENTED BY THE DIRECTOR. THE PURPOSE OF THE PROGRAM
 IS TO DISBURSE FUNDS FROM THE COMMUNITY JUST TRANSITION FUND PURSUANT TO
 SECTION ONE THOUSAND NINE HUNDRED NINE OF THIS SUBTITLE.
   § 1908. ADMINISTRATION BY THE AUTHORITY.  WITHIN  SIX  MONTHS  OF  THE
 EFFECTIVE  DATE OF THIS SUBTITLE, THE AUTHORITY IS HEREBY AUTHORIZED AND
 DIRECTED TO ESTABLISH  AND  ADMINISTER  THE  COMMUNITY  JUST  TRANSITION
 PROGRAM.  THE AUTHORITY SHALL IMPLEMENT THE PROGRAM IN CONSULTATION WITH
 THE WORKING GROUP. THE AUTHORITY IS AUTHORIZED AND DIRECTED TO:
   1. USE MONIES MADE AVAILABLE FOR THE PROGRAM, PURSUANT TO SECTION  ONE
 THOUSAND  NINE  HUNDRED  NINE  AND ONE THOUSAND NINE HUNDRED TEN OF THIS
 SUBTITLE;
   2. ENTER INTO CONTRACTS WITH ELIGIBLE LEAD APPLICANTS  AND  SUB-APPLI-
 CANTS THROUGH A COMPETITIVE SELECTION PROCESS;
   3.  RECOVER  FROM  THE  MONIES  MADE AVAILABLE FOR THE PROGRAM, NOT IN
 EXCESS OF TWO PERCENT OF ANNUAL FUND PROCEEDS,  ITS  OWN  NECESSARY  AND
 DOCUMENTED  COSTS  INCURRED  IN  ADMINISTERING  THE  PROGRAM,  INCLUDING
 PROGRAM EVALUATION, COMPENSATION  FOR  MEMBERS  OF  THE  WORKING  GROUP,
 COMPENSATION FOR AT LEAST ONE FULL-TIME AUTHORITY STAFF PERSON DEDICATED
 TO SUPPORTING THE WORKING GROUP; AND
   4. EXERCISE SUCH OTHER POWERS AS ARE NECESSARY FOR THE PROPER ADMINIS-
 TRATION OF THE PROGRAM.
   §  1909. ALLOCATION OF FUNDS. 1. FUNDS FROM THE COMMUNITY JUST TRANSI-
 TION FUND SHALL BE DISBURSED THROUGH  DIRECT  GRANTS  TO  ELIGIBLE  LEAD
 APPLICANTS  SERVING  DISADVANTAGED  COMMUNITIES.  SUCH  FUNDS  SHALL  BE
 DISBURSED IN ACCORDANCE WITH SUBDIVISIONS TWO AND THREE OF THIS SECTION.
   2. AT LEAST SEVENTY-FIVE PERCENT OF  FUNDS  FROM  THE  COMMUNITY  JUST
 TRANSITION FUND SHALL BE FOR PROJECTS PHYSICALLY LOCATED WITHIN A DESIG-
 NATED  DISADVANTAGED  COMMUNITY,  AND  SHALL  ACHIEVE ONE OR MORE OF THE
 GOALS IN PARAGRAPH (A), (B) OR (C) OF THIS SUBDIVISION:
   (A) MAXIMIZING GREENHOUSE GAS EMISSIONS REDUCTIONS, INCLUDING  THROUGH
 THE  COMPLETION  OF PROJECTS, INCLUDING BUT NOT LIMITED TO: ENERGY EFFI-
 CIENCY AND ENERGY DEMAND REDUCTION; RENEWABLE  ENERGY;  ENERGY  STORAGE;
 RENEWABLE ENERGY-POWERED MICROGRIDS; ENERGY RESILIENCY; DEMAND RESPONSE;
 AND  REDUCING  URBAN  HEAT ISLAND EFFECTS THROUGH VARIOUS MEANS, SUCH AS

 S. 7645                            22
 
 THROUGH THE COMPLETION OF URBAN FORESTRY, URBAN  AGRICULTURE,  OR  GREEN
 INFRASTRUCTURE PROJECTS;
   (B)  THE  REDUCTION OF OTHER REGULATED AIR CONTAMINANTS IN CONJUNCTION
 WITH GREENHOUSE GAS EMISSIONS REDUCTIONS; AND
   (C) COMMUNITY OWNERSHIP AND GOVERNANCE, INCLUDING THROUGH THE  FUNDING
 OF PLANNING, DESIGN AND CONSTRUCTION OF COMMUNITY SOLAR INSTALLATION AND
 OTHER PROJECTS LISTED UNDER PARAGRAPH (A) OF THIS SUBDIVISION.
   3. UP TO TWENTY-FIVE PERCENT OF FUNDS FROM THE COMMUNITY JUSTICE TRAN-
 SITION  FUND  MAY  BE  USED  FOR  PROJECTS LOCATED OUTSIDE OF DESIGNATED
 DISADVANTAGED COMMUNITIES, BUT MUST PROVIDE AT LEAST ONE OF THE  FOLLOW-
 ING BENEFITS TO ONE OR MORE DESIGNATED DISADVANTAGED COMMUNITIES:
   (A)  REDUCING  EMISSIONS FROM STATIONARY SOURCES, INCLUDING THE PERMA-
 NENT CLOSURE OF FOSSIL FUEL-FIRED POWER PLANTS, INCLUDING PEAKER-PLANTS,
 OR WASTE-TO-ENERGY PLANTS, WITH PRIORITY  GIVEN  TO  REDUCING  EMISSIONS
 FROM  SOURCES  THAT  EMIT  POLLUTION  INTO  THE AIRSHED OF DISADVANTAGED
 COMMUNITIES;
   (B) REDUCING THE FINANCIAL BURDEN OF ENERGY EXPENSES FOR DISADVANTAGED
 COMMUNITIES, INCLUDING THE REDUCING ENERGY COSTS THROUGH THE CREATION OF
 COMMUNITY-OWNED SOLAR ASSETS; AND
   (C) INCREASING AND SUPPORTING OPPORTUNITIES FOR COMMUNITY OWNERSHIP OF
 ENERGY PROJECTS BY RESIDENTS  OF  DISADVANTAGED  COMMUNITIES,  INCLUDING
 OWNERSHIP OF THE TYPE OF ENERGY PROJECTS SPECIFIED UNDER SUBDIVISION TWO
 OF THIS SECTION AND BY ESTABLISHING COMMUNITY-OWNED ENERGY COOPERATIVES.
   §  1910. SELECTION PROCESS.  1. THE DIRECTOR, IN CONSULTATION WITH THE
 WORKING GROUP, SHALL DEVELOP CRITERIA AND A  PROCESS  FOR  COMPETITIVELY
 SELECTING PROJECT PROPOSALS UNDER THIS SUBTITLE, IN ACCORDANCE WITH THIS
 SECTION AND SECTION NINETEEN HUNDRED NINE OF THIS SUBTITLE.
   2. THE DIRECTOR, IN CONSULTATION WITH THE WORKING GROUP, SHALL COMPET-
 ITIVELY  SELECT  PROJECT PROPOSALS ACCORDING TO THE CRITERIA AND PROCESS
 ESTABLISHED UNDER SUBDIVISION THREE OF THIS SECTION.
   3. IN SELECTING PROJECTS AND DISTRIBUTING FUNDS,  THE  DIRECTOR  SHALL
 MEET THE STANDARDS IN PARAGRAPHS (A), (B), (C), (D), (E) AND (F) OF THIS
 SUBDIVISION.
   (A)  ALL  PROJECTS SHALL BE LED BY AN ELIGIBLE LEAD APPLICANT; PROVIDE
 BENEFITS TO DESIGNATED DISADVANTAGED COMMUNITIES;  COMPLY  WITH  SECTION
 NINETEEN  HUNDRED NINE OF THIS SUBTITLE; INCORPORATE COMMUNITY DECISION-
 MAKING, PURSUANT TO SECTION NINETEEN HUNDRED TWELVE  OF  THIS  SUBTITLE,
 THROUGHOUT  PROJECT PLANNING AND IMPLEMENTATION; AND PROVIDE A COMMUNITY
 ACCOUNTABILITY MECHANISM, PURSUANT TO SECTION NINETEEN HUNDRED  THIRTEEN
 OF THIS SUBTITLE.
   (B) PROGRAM FUNDS AS A WHOLE SHALL BE EQUITABLY DISTRIBUTED TO MEMBERS
 OF DISADVANTAGED COMMUNITIES, WITH ROUGHLY AN EVEN DISTRIBUTION OF FUNDS
 PER CAPITA AMONG DISADVANTAGED COMMUNITIES ACROSS THE STATE.
   (C)  COMMUNITIES  SHALL  BE  TARGETED  IN AREAS WHERE ENERGY COSTS ARE
 PARTICULARLY HIGH IN RELATION TO A MEASURE OF MEDIAN HOUSEHOLD INCOME AS
 DETERMINED BY THE AUTHORITY; OR WHICH HAVE BEEN DESIGNATED AS  A  NONAT-
 TAINMENT  AREA FOR ONE OR MORE POLLUTANTS PURSUANT TO SECTION 107 OF THE
 FEDERAL CLEAN AIR ACT (42 U.S.C. SECTION 7407).
   (D) THE DIRECTOR SHALL GIVE PREFERENCE IN AWARDS  TO  APPLICANTS  THAT
 INCLUDE  SIGNIFICANT  PARTICIPATION BY MINORITY- OR WOMEN-OWNED BUSINESS
 ENTERPRISES.
   (E) THE DIRECTOR SHALL GIVE PREFERENCE IN AWARDS  TO  APPLICANTS  THAT
 IMPLEMENT  MECHANISMS  TO  MAXIMIZE COMMUNITY OWNERSHIP, PURSUANT TO THE
 FINDINGS OF THE LATEST REPORT MANDATED BY SECTION NINETEEN HUNDRED  FOUR
 OF THIS TITLE.

 S. 7645                            23
 
   (F)  THE  DIRECTOR  SHALL  GIVE  PREFERENCE IN AWARDS TO PROJECTS THAT
 WOULD NOT OTHERWISE LIKELY BE  COMPLETED  WITHOUT  THE  SUPPORT  OF  THE
 PROGRAM.
   4.  THE  DIRECTOR  SHALL ENCOURAGE ELIGIBLE LEAD APPLICANTS TO PROPOSE
 PROJECTS IN COLLABORATION WITH ELIGIBLE SUB-APPLICANTS.
   5. THE DIRECTOR SHALL ANNUALLY ISSUE AT LEAST ONE AND  NOT  MORE  THAN
 FOUR  PROGRAM  OPPORTUNITY  NOTICES OR REQUESTS FOR PROPOSALS TO SOLICIT
 APPLICATIONS FROM ELIGIBLE LEAD APPLICANTS.
   6. THE DIRECTOR SHALL PRIORITIZE CREATING A STREAMLINED AND SIMPLIFIED
 APPLICATION AND  DISBURSEMENT  PROCESS  FOR  ELIGIBLE  LEAD  APPLICANTS,
 INCLUDING  BUT  NOT LIMITED TO, QUARTERLY AVAILABLE GRANT OPPORTUNITIES,
 AT LEAST QUARTERLY INFORMATION WEBINARS, AND PROVIDING OPPORTUNITIES FOR
 TECHNICAL ASSISTANCE TO NAVIGATE THE APPLICATION PROCESS.
   7. TO THE EXTENT  OTHERWISE  PERMITTED  BY  LAW,  THE  DIRECTOR  SHALL
 DISTRIBUTE FUNDS IN A MANNER THAT PROVIDES AT LEAST SEVENTY-FIVE PERCENT
 OF  EACH  AWARD  UP-FRONT,  TO ENSURE THAT ELIGIBLE LEAD APPLICANTS WITH
 LIMITED EXISTING BUDGETS ARE ABLE TO IMPLEMENT PROJECTS EFFECTIVELY.
   8. THE DIRECTOR SHALL CONSULT WITH THE DIVISION OF HOUSING AND  COMMU-
 NITY  RENEWAL  AND  THE WORKING GROUP TO DEVELOP STRATEGIES TO: MITIGATE
 ANY ADVERSE ECONOMIC IMPACT OF THE PROGRAM ON  TENANTS  AND  HOMEOWNERS,
 INCLUDING,  BUT  NOT  LIMITED TO, RESIDENTS OF RENT-REGULATED HOUSING OR
 RECIPIENTS  OF  HOUSING  SUBSIDIES  AND  RENT-BURDENED  HOUSEHOLDS;  AND
 ENHANCE LONG-TERM COMMUNITY COHESION.
   § 1911. IDENTIFICATION OF DISADVANTAGED COMMUNITY NEEDS. 1. THE DIREC-
 TOR,  IN  COOPERATION  WITH  THE  WORKING GROUP AND THE COMMISSIONERS OF
 HEALTH, LABOR AND ENVIRONMENTAL CONSERVATION, SHALL  IDENTIFY  DISADVAN-
 TAGED COMMUNITY NEEDS FOR THE PURPOSES OF IMPLEMENTING THIS SECTION.
   2.  DISADVANTAGED  COMMUNITY NEEDS SHALL BE IDENTIFIED, WITH THE INPUT
 OF EXPERTS, LOCAL GOVERNMENT REPRESENTATIVES, PUBLIC  UTILITY  REPRESEN-
 TATIVES,  AND OTHER LOCAL STAKEHOLDERS, FOR EACH DISADVANTAGED COMMUNITY
 OR SET OF DISADVANTAGED COMMUNITIES.
   3. BEFORE FINALIZING THE LIST OF  IDENTIFIED  DISADVANTAGED  COMMUNITY
 NEEDS  PURSUANT  TO  SUBDIVISION ONE OF THIS SECTION, THE DIRECTOR SHALL
 ENSURE THAT THERE ARE MEANINGFUL OPPORTUNITIES FOR  PUBLIC  COMMENT  FOR
 ALL  PERSONS  WHO  WILL  BE  IMPACTED BY THE IDENTIFIED NEEDS, INCLUDING
 PERSONS LIVING IN AREAS THAT MAY BE IDENTIFIED AS DISADVANTAGED COMMUNI-
 TIES, INCLUDING BY:
   (A) PUBLISHING DRAFT IDENTIFIED  DISADVANTAGED  COMMUNITY  NEEDS,  AND
 MAKING SUCH INFORMATION AVAILABLE ON THE INTERNET;
   (B) HOLDING AT LEAST SIX REGIONAL PUBLIC HEARINGS ON THE DRAFT IDENTI-
 FIED  DISADVANTAGED COMMUNITY NEEDS, INCLUDING THREE MEETINGS IN UPSTATE
 REGIONS AND THREE MEETINGS IN DOWNSTATE REGIONS; AND
   (C) ALLOWING AT LEAST ONE HUNDRED TWENTY DAYS FOR  THE  SUBMISSION  OF
 PUBLIC  COMMENT,  FOLLOWING THE DATE OF THE PUBLICATION OF DRAFT IDENTI-
 FIED DISADVANTAGED COMMUNITY NEEDS DESCRIBED UNDER PARAGRAPH (A) OF THIS
 SUBDIVISION.
   4. THE DIRECTOR, IN  COOPERATION  WITH  THE  WORKING  GROUP,  AND  THE
 COMMISSIONERS  OF  HEALTH, LABOR AND ENVIRONMENTAL CONSERVATION OR THEIR
 DESIGNEES, SHALL MEET NO LESS THAN THAN ANNUALLY TO REVIEW  THE  IDENTI-
 FIED  DISADVANTAGED  COMMUNITY  NEEDS  AND METHODS USED TO IDENTIFY SUCH
 NEEDS, AND MAY MODIFY SUCH METHODS TO INCORPORATE NEW DATA AND SCIENTIF-
 IC FINDINGS, SUBJECT TO  THE  SAME  PROCESS  REQUIREMENTS  LISTED  UNDER
 SUBDIVISION THREE OF THIS SECTION.
   §  1912.  COMMUNITY  DECISION-MAKING AND ACCOUNTABILITY MECHANISMS. 1.
 THE DIRECTOR, IN COOPERATION WITH THE WORKING GROUP AND THE  COMMISSION-
 ERS  OF  HEALTH,  LABOR  AND ENVIRONMENTAL CONSERVATION, SHALL ESTABLISH

 S. 7645                            24
 
 CRITERIA FOR APPROPRIATE COMMUNITY  DECISION-MAKING  PRACTICES  FOR  THE
 PURPOSES OF IMPLEMENTING THIS SECTION.
   2.  COMMUNITY  DECISION-MAKING  PRACTICES SHALL BE IDENTIFIED BASED ON
 CONSULTATIONS WITH CONSTITUENCY-BASED ORGANIZATIONS, MEMBERS  OF  DISAD-
 VANTAGED COMMUNITIES, AND OTHER STAKEHOLDERS IDENTIFIED BY THE DIRECTOR.
   3.  BEFORE FINALIZING THE CRITERIA FOR APPROPRIATE COMMUNITY DECISION-
 MAKING PRACTICES PURSUANT TO SUBDIVISION ONE OF THIS SECTION, THE DIREC-
 TOR SHALL ENSURE THAT THERE  ARE  MEANINGFUL  OPPORTUNITIES  FOR  PUBLIC
 COMMENT  FOR ALL PERSONS WHO WILL BE IMPACTED BY THE CRITERIA, INCLUDING
 PERSONS LIVING IN AREAS THAT MAY BE IDENTIFIED AS DISADVANTAGED COMMUNI-
 TIES, INCLUDING BY:
   (A) PUBLISHING DRAFT CRITERIA, AND MAKING SUCH  INFORMATION  AVAILABLE
 ON THE INTERNET;
   (B)  HOLDING AT LEAST SIX REGIONAL PUBLIC HEARINGS ON THE DRAFT CRITE-
 RIA, INCLUDING THREE MEETINGS IN THE UPSTATE REGION AND  THREE  MEETINGS
 IN THE DOWNSTATE REGION; AND
   (C)  ALLOWING  AT  LEAST ONE HUNDRED TWENTY DAYS FOR THE SUBMISSION OF
 PUBLIC COMMENT, FOLLOWING THE DATE OF THE PUBLICATION OF DRAFT  CRITERIA
 DESCRIBED UNDER PARAGRAPH (A) OF THIS SUBDIVISION.
   4.  THE  DIRECTOR,  IN  COOPERATION  WITH  THE  WORKING GROUP, AND THE
 COMMISSIONERS OF HEALTH, LABOR  AND  ENVIRONMENTAL  CONSERVATION,  SHALL
 MEET  NO  LESS  THAN ANNUALLY TO REVIEW THE CRITERIA AND METHODS USED TO
 IDENTIFY APPROPRIATE COMMUNITY DECISION-MAKING PRACTICES, AND MAY MODIFY
 SUCH METHODS TO INCORPORATE NEW DATA AND SCIENTIFIC FINDINGS, SUBJECT TO
 THE SAME PROCESS REQUIREMENTS LISTED UNDER  SUBDIVISION  THREE  OF  THIS
 SECTION.
   § 1913. CRITERIA FOR IMPLEMENTING COMMUNITY ACCOUNTABILITY MECHANISMS.
 THE DIRECTOR, IN COOPERATION WITH THE WORKING GROUP, AND THE COMMISSION-
 ERS  OF  HEALTH,  LABOR  AND ENVIRONMENTAL CONSERVATION, SHALL ESTABLISH
 CRITERIA FOR IMPLEMENTING COMMUNITY ACCOUNTABILITY  MECHANISMS  FOR  THE
 PURPOSES OF IMPLEMENTING THIS SECTION.
   1. CRITERIA FOR IMPLEMENTING COMMUNITY ACCOUNTABILITY MECHANISMS SHALL
 BE BASED ON INPUT FROM THE WORKING GROUP.
   2.  BEFORE FINALIZING THE CRITERIA FOR IMPLEMENTING COMMUNITY ACCOUNT-
 ABILITY MECHANISMS PURSUANT TO SUBDIVISION  ONE  OF  THIS  SECTION,  THE
 DIRECTOR SHALL ENSURE THAT THERE ARE MEANINGFUL OPPORTUNITIES FOR PUBLIC
 COMMENT  FOR ALL PERSONS WHO WILL BE IMPACTED BY THE CRITERIA, INCLUDING
 PERSONS LIVING IN AREAS THAT MAY BE IDENTIFIED AS DISADVANTAGED COMMUNI-
 TIES, INCLUDING BY:
   (A) PUBLISHING DRAFT CRITERIA, AND MAKING SUCH  INFORMATION  AVAILABLE
 ON THE INTERNET;
   (B)  HOLDING AT LEAST SIX REGIONAL PUBLIC HEARINGS ON THE DRAFT CRITE-
 RIA, INCLUDING THREE MEETINGS IN THE UPSTATE REGION AND  THREE  MEETINGS
 IN THE DOWNSTATE REGION; AND
   (C)  ALLOWING  AT  LEAST ONE HUNDRED TWENTY DAYS FOR THE SUBMISSION OF
 PUBLIC COMMENT, FOLLOWING THE DATE OF THE PUBLICATION OF DRAFT  CRITERIA
 DESCRIBED UNDER PARAGRAPH (A) OF THIS SUBDIVISION.
   3.  THE  DIRECTOR,  IN  COOPERATION  WITH  THE  WORKING GROUP, AND THE
 COMMISSIONERS OF HEALTH, LABOR  AND  ENVIRONMENTAL  CONSERVATION,  SHALL
 MEET  NO  LESS  THAN ANNUALLY TO REVIEW THE CRITERIA AND METHODS USED TO
 IDENTIFY COMMUNITY ACCOUNTABILITY MECHANISMS, AND MAY MODIFY SUCH  METH-
 ODS TO INCORPORATE NEW DATA AND SCIENTIFIC FINDINGS, SUBJECT TO THE SAME
 PROCESS REQUIREMENTS LISTED UNDER SUBDIVISION TWO OF THIS SECTION.
   §  1914.  CONSULTATION  WITH THE WORKING GROUP. IN CONSULTING WITH THE
 WORKING GROUP IN THE COURSE  OF  IMPLEMENTING  THE  PROGRAM  ESTABLISHED

 S. 7645                            25
 
 UNDER  THIS SUBTITLE, THE AUTHORITY SHALL ADHERE TO THE FOLLOWING PROCE-
 DURES:
   1.  THE  DIRECTOR SHALL CONVENE CONSULTATION MEETINGS WITH THE WORKING
 GROUP NOT LESS FREQUENTLY THAN FOUR TIMES ANNUALLY;
   2. THE DIRECTOR SHALL PROVIDE, TO ALL WORKING GROUP MEMBERS, NOTICE OF
 WORKING GROUP MEETINGS NOT LESS THAN ONE MONTH BEFORE THE  DATE  OF  THE
 MEETING; AND
   3. THE DIRECTOR SHALL PROVIDE, TO ALL WORKING GROUP MEMBERS, ELECTRON-
 IC COPIES OR HARD COPIES OF ANY WRITTEN OR OTHER INFORMATIONAL MATERIALS
 TO BE DISCUSSED AT A GIVEN WORKING GROUP MEETING NOT LESS THAN ONE MONTH
 PRIOR TO THE DATE OF THE MEETING.
   §  1915. DEFINITIONS. FOR THE PURPOSES OF THIS SUBTITLE, THE FOLLOWING
 TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   1. "ADVISORY COUNCIL" MEANS THE BODY ESTABLISHED UNDER  SECTION  EIGH-
 TEEN HUNDRED NINETY-EIGHT OF THIS ARTICLE.
   2.  "ELIGIBLE  APPLICANT"  MEANS  A  CONSTITUENCY-BASED  ORGANIZATION,
 TRIBAL NATION, MUNICIPALITY, TRANSIT AGENCY, PORT  AUTHORITY,  METROPOL-
 ITAN  PLANNING  ORGANIZATIONS,  SMALL BUSINESS, MINORITY- OR WOMEN-OWNED
 BUSINESS ENTERPRISE OR  ANY  OTHER  ENTITY  DEEMED  APPROPRIATE  BY  THE
 AUTHORITY.
   3.  "FUND"  MEANS THE CLIMATE JOBS AND INFRASTRUCTURE FUND ESTABLISHED
 UNDER SUBDIVISION TWO OF SECTIONS THREE THOUSAND FORTY-SIX  OF  THE  TAX
 LAW.
   4.  "MINORITY-  OR  WOMEN-OWNED  BUSINESS  ENTERPRISE"  MEANS EITHER A
 "MINORITY-OWNED BUSINESS ENTERPRISE" AS DEFINED IN SUBDIVISION SEVEN  OF
 SECTION  THREE HUNDRED TEN OF THE EXECUTIVE LAW, OR A "WOMEN-OWNED BUSI-
 NESS ENTERPRISE", AS DEFINED IN SUBDIVISION FIFTEEN OF SUCH SECTION.
   5. "PROGRAM" MEANS THE CLIMATE JOBS AND INFRASTRUCTURE PROGRAM  ESTAB-
 LISHED UNDER THIS SUBTITLE.
   6.  "THIRD-PARTY  ENTITIES"  MEANS  PRIVATE  SECTOR ENTITIES, ACADEMIC
 INSTITUTIONS, NON-PROFIT ORGANIZATIONS AND OTHER STAKEHOLDERS  THAT  ARE
 NOT ELIGIBLE APPLICANTS.
   §  1916.  ESTABLISHMENT  OF  CLIMATE  JOBS AND INFRASTRUCTURE PROGRAM.
 THERE IS HEREBY ESTABLISHED WITHIN THE AUTHORITY,  A  CLIMATE  JOBS  AND
 INFRASTRUCTURE PROGRAM, WHICH SHALL DISBURSE FUNDS FROM THE CLIMATE JOBS
 AND  INFRASTRUCTURE FUND PURSUANT TO THE GOALS ESTABLISHED UNDER SECTION
 NINETEEN HUNDRED EIGHTEEN OF THIS SUBTITLE.
   § 1917. ADMINISTRATION BY THE AUTHORITY.  WITHIN  SIX  MONTHS  OF  THE
 EFFECTIVE  DATE OF THIS SUBTITLE, THE AUTHORITY IS HEREBY AUTHORIZED AND
 DIRECTED TO ESTABLISH AND ADMINISTER THE CLIMATE JOBS AND INFRASTRUCTURE
 PROGRAM. THE AUTHORITY SHALL IMPLEMENT THE PROGRAM IN CONSULTATION  WITH
 THE  ADVISORY COUNCIL, THE PUBLIC SERVICE COMMISSION, THE NEW YORK INDE-
 PENDENT SYSTEM OPERATOR, AND THE DEPARTMENTS OF TRANSPORTATION, ENVIRON-
 MENTAL CONSERVATION, HEALTH AND LABOR. THE AUTHORITY IS  AUTHORIZED  AND
 DIRECTED TO TAKE THE FOLLOWING STEPS:
   1.  USING  MONIES MADE AVAILABLE FROM THE FUND TO ACHIEVE THE GOALS OF
 THE PROGRAM OUTLINED IN SECTION NINETEEN HUNDRED EIGHTEEN OF THIS SUBTI-
 TLE;
   2. ENTERING INTO CONTRACTS WITH ELIGIBLE APPLICANTS AND OTHER ENTITIES
 THROUGH THE COMPETITIVE SELECTION PROCESS AUTHORIZED BY THIS SUBTITLE;
   3. USING FROM THE MONIES MADE AVAILABLE FOR THE PROGRAM, NOT IN EXCESS
 OF TWO PERCENT OF ANNUAL FUND PROCEEDS, ITS OWN NECESSARY AND DOCUMENTED
 COSTS INCURRED IN ADMINISTERING THE PROGRAM,  INCLUDING  PROGRAM  EVALU-
 ATION;  COMPENSATION,  AT  ANY AMOUNT TO BE DETERMINED BY THE AUTHORITY,
 FOR MEMBERS OF THE ADVISORY COUNCIL; AND COMPENSATION FOR AT  LEAST  ONE

 S. 7645                            26
 
 FULL-TIME  AUTHORITY  STAFF  PERSON DEDICATED TO SUPPORTING THE ADVISORY
 COUNCIL; AND
   4. EXERCISING SUCH OTHER POWERS AS ARE NECESSARY FOR THE PROPER ADMIN-
 ISTRATION OF THE PROGRAM.
   §  1918.  ALLOCATION  OF  FUNDS.  1.  FUNDS  FROM THE CLIMATE JOBS AND
 INFRASTRUCTURE FUND SHALL  BE  DISBURSED  UNDER  THE  CLIMATE  JOBS  AND
 INFRASTRUCTURE  PROGRAM TO ACHIEVE QUANTIFIABLE, VERIFIABLE, AND SIGNIF-
 ICANT REDUCTIONS IN  GREENHOUSE  GAS  EMISSIONS  AND  OF  REGULATED  AIR
 CONTAMINANTS  WHILE ACHIEVING THE GENERAL GOALS SPECIFIED IN SUBDIVISION
 TWO OF THIS SECTION.
   2. IN ADDITION TO MEETING THE GOALS SPECIFIED IN  SUBDIVISION  ONE  OF
 THIS SECTION, FUNDS SHALL BE DISBURSED TO MEET THE FOLLOWING GOALS:
   (A)  JOB CREATION, PURSUANT TO THE STANDARDS ESTABLISHED UNDER ARTICLE
 EIGHT-B OF THE LABOR LAW, INCLUDING OPPORTUNITIES FOR NEW ENTRANTS  INTO
 THE  STATE'S  WORKFORCE, AND THE LONG-TERM UNEMPLOYED OR DISPLACED WORK-
 ERS, AND THE DEVELOPMENT OF AN IN-STATE MANUFACTURING AND  SUPPLY  CHAIN
 FOR CLEAN ENERGY TECHNOLOGIES;
   (B) FUNDING LARGE-SCALE PROJECTS, INCLUDING THOSE THAT MAY SPAN MULTI-
 PLE COMMUNITIES OR REGIONS;
   (C)  REDUCING  GREENHOUSE  GAS  EMISSIONS  AND  ENERGY  COSTS  THROUGH
 IMPROVEMENTS IN ENERGY EFFICIENCY, ENERGY CONSERVATION, LOAD  BALANCING,
 ENERGY STORAGE AND THE INSTALLATION OF CLEAN ENERGY TECHNOLOGIES;
   (D)  ACHIEVING  ADVANCEMENTS  IN  SOCIAL  EQUITY,  INCLUDING PROMOTING
 COMMUNITY OWNERSHIP AND GOVERNANCE OF ENERGY PRODUCTION, AND  SUPPORTING
 SUSTAINABLE LOCAL ECONOMIC DEVELOPMENT;
   (E)  ELECTRIFICATION  OF  EQUIPMENT  AND  APPLIANCES  FOR RESIDENTIAL,
 COMMERCIAL AND INDUSTRIAL APPLICATIONS;
   (F) PROMOTING THE PARTICIPATION OF PRIVATE CAPITAL, MUNICIPAL  GOVERN-
 MENTS  AND  TRIBAL NATIONS IN ACHIEVING THE GOALS STATED IN THIS SECTION
 AND THE USE OF INNOVATIVE FINANCING MECHANISMS TO FINANCE  ENERGY  EFFI-
 CIENCY IMPROVEMENTS THROUGH ENERGY COST SAVINGS; AND
   (G)  ENCOURAGING  THE  DEVELOPMENT  OF PROGRAMS TO SUPPORT COMMUNITIES
 WITH HIGH CUMULATIVE ENVIRONMENTAL BURDEN, HIGH PEAK  ENERGY  LOAD,  AND
 AGING HOUSING STOCK IN ORDER TO PRESERVE AFFORDABLE HOUSING.
   3.  EVERY FIVE YEARS, THE AUTHORITY, IN CONSULTATION WITH THE ADVISORY
 COUNCIL, SHALL DESIGNATE PRIORITY PROJECT TYPES FOR INVESTMENTS BASED ON
 CAPITAL  FUNDING  NEEDS,  THE  POTENTIAL  FOR  GREENHOUSE  GAS  EMISSION
 REDUCTIONS,  AND  THE POTENTIAL FOR REGIONAL JOB CREATION. THESE PRIORI-
 TIES SHALL GUIDE THE AUTHORITY IN  SOLICITING  PROPOSALS  AND  SELECTING
 PROJECTS.  THE  FIRST  FIVE YEARS OF FUNDING SHALL PRIORITIZE INVESTMENT
 IN:
   (A) PUBLIC TRANSIT,  WITH  SPECIAL  PRIORITY  FOR  INTRA-CITY  TRANSIT
 MODES, IN UPSTATE REGIONS AND IN OTHER UNDERSERVED REGIONS OF THE STATE,
 INCLUDING  THROUGH:  SUBSIDIZING TRANSIT RATE REDUCTIONS, THE ESTABLISH-
 MENT OF NEW TRANSIT ROUTES, AND IMPROVEMENTS IN TRANSIT SERVICE (INCLUD-
 ING INCREASED FREQUENCY, ACCESSIBILITY AND SAFETY), ESPECIALLY TO BETTER
 SERVE LOW- TO MODERATE-INCOME INDIVIDUALS; CREATING  "JOURNEY  TO  WORK"
 ROUTES,  DEDICATED  TO  CREATING  ACCESS TO MAJOR AREAS OF EMPLOYMENT IN
 BOTH URBAN AND NON-URBAN AREAS, ESPECIALLY ROUTES  CONNECTING  NON-URBAN
 AREAS  WITHOUT  NECESSITATING A TRIP THROUGH THE CENTRAL CITY; DIRECTING
 INFRASTRUCTURE FUNDING, INCLUDING THROUGH VARIOUS APPROACHES TO SUPPORT-
 ING BONDING, REVOLVING LOAN FUNDS AND OTHER  FINANCING  MECHANISMS;  AND
 SUBSIDIZING  ELECTRIC  AND  ZERO-EMISSIONS  VEHICLES AND INFRASTRUCTURE,
 INCLUDING CHARGING INFRASTRUCTURE AND ENERGY STORAGE TECHNOLOGIES;
   (B) ENERGY EFFICIENCY AND CONSERVATION PROJECTS, INCLUDING PROJECTS IN
 PUBLIC BUILDINGS, AND INCENTIVES FOR NEW PRIVATE BUILDINGS THAT  ACHIEVE

 S. 7645                            27
 
 HIGH  EFFICIENCY OR NET-ZERO STATUS AND FOR RETROFITS OF EXISTING BUILD-
 INGS, PROVIDING THAT LANDLORDS WHO RECEIVE RETROFIT FUNDS  OR  FINANCIAL
 ASSISTANCE OF ANY KIND UNDER THIS PROGRAM NOT BE ALLOWED TO INCLUDE SUCH
 INVESTMENTS  AS  MAJOR  CAPITAL  IMPROVEMENTS  OR  INDIVIDUAL  APARTMENT
 ASSESSMENTS IN ORDER TO RAISE RENTS TO RECOUP  COSTS  IN  RENT-REGULATED
 HOUSING;
   (C)  LARGE  SCALE RENEWABLE ENERGY PROJECTS, COMMUNITY-OWNED RENEWABLE
 ENERGY PROJECTS, SUCH AS COMMUNITY SOLAR AND  COMMUNITY  WIND  PROJECTS,
 AND  PUBLICLY-OWNED  RENEWABLE  ENERGY  PROJECTS,  INCLUDING PROJECTS ON
 PUBLIC BUILDINGS AND LAND;
   (D) PORT FACILITY ELECTRIFICATION AND SUSTAINABILITY MEASURES, INCLUD-
 ING AT THE PORT OF ALBANY, THE PORT OF BUFFALO, AND THE  NEW  YORK  CITY
 WATERFRONT INCLUDING HUNTS POINT AND SUNSET PARK; AND
   (E) ELECTRIC GRID UPGRADES WITHIN NEW YORK, INCLUDING THE CONSTRUCTION
 OF  ELECTRICITY  TRANSMISSION, ENERGY STORAGE AND SMART GRID INFRASTRUC-
 TURE, AND INCLUDING SUPPORT FOR ESTABLISHING  ELECTRIC  VEHICLE  INFRAS-
 TRUCTURE AND SYSTEMS TO OPTIMIZE DISTRIBUTED ENERGY RESOURCES.
   4.  IN  ADDITION  TO ALLOCATING FUNDS UNDER THE PROGRAM TO ACHIEVE THE
 GOALS AND PRIORITIES OUTLINED IN THIS SECTION, THE AUTHORITY SHALL ALLO-
 CATE FUNDS FOR THE PURPOSES OF PROVIDING TECHNICAL ASSISTANCE TO  ELIGI-
 BLE APPLICANTS. SUCH TECHNICAL ASSISTANCE SHALL INCLUDE ASSISTANCE WITH:
 DEVELOPING PROJECT PROPOSALS; IMPLEMENTING PROJECT PROPOSALS; CONDUCTING
 ANALYSIS  AND  REPORTING  ON PROJECTS IMPLEMENTED UNDER THE PROGRAM; AND
 OTHER NEEDS IDENTIFIED BY THE AUTHORITY.
   § 1919. FUNDING INSTRUMENTS. THE AUTHORITY, IN CONSULTATION  WITH  THE
 ADVISORY COUNCIL, SHALL DETERMINE THE APPROPRIATE INSTRUMENT, OR VARIETY
 OF  INSTRUMENTS,  INCLUDING  GRANTS,  LOAN  GUARANTEES, INCENTIVES, BOND
 PAYMENTS, LOAN PROGRAMS, AND OTHER MECHANISMS FOR  ACHIEVING  THE  GOALS
 STATED IN SECTION NINETEEN HUNDRED EIGHTEEN OF THIS SUBTITLE.
   §  1920.  SELECTION PROCESS AND CRITERIA. THE AUTHORITY IS AUTHORIZED,
 WITHIN AMOUNTS APPROPRIATED, TO DISBURSE FUNDS FROM THE FUND TO ELIGIBLE
 APPLICANTS ON A COMPETITIVE BASIS.
   1. THE AUTHORITY, IN CONSULTATION WITH  THE  ADVISORY  COUNCIL,  SHALL
 DEVELOP CRITERIA AND A PROCESS FOR SELECTING PROJECT PROPOSALS SUBMITTED
 BY ELIGIBLE APPLICANTS UNDER THIS SUBTITLE.
   2.  IN  SELECTING PROJECTS AND DISTRIBUTING FUNDS, THE AUTHORITY SHALL
 INCLUDE THE FOLLOWING CRITERIA:
   (A) THE EXTENT TO WHICH THE PROJECT MEETS EACH OF THE GOALS SET  FORTH
 IN SUBDIVISIONS ONE AND TWO OF SECTION NINETEEN HUNDRED EIGHTEEN OF THIS
 SUBTITLE;
   (B) WHETHER THE PROJECT FALLS UNDER A PRIORITY AREA FOR INVESTMENT FOR
 THE FIVE-YEAR PERIOD;
   (C)  WHETHER  THE  PROJECT  WILL BENEFIT GEOGRAPHIC AREAS WHERE ENERGY
 COSTS ARE PARTICULARLY HIGH IN RELATION TO A MEASURE OF MEDIAN HOUSEHOLD
 INCOME AS DETERMINED BY THE AUTHORITY; OR WHICH HAVE BEEN DESIGNATED  AS
 A  NONATTAINMENT AREA FOR ONE OR MORE POLLUTANTS PURSUANT TO SECTION 107
 OF THE FEDERAL CLEAN AIR ACT (42 U.S.C. SECTION 7407);
   (D) WHETHER THE APPLICANTS INCLUDE SIGNIFICANT PARTICIPATION BY MINOR-
 ITY- AND WOMEN-OWNED BUSINESS ENTERPRISES; AND
   (E) THE EXTENT TO WHICH PROJECTS  WOULD  NOT  OTHERWISE  BE  COMPLETED
 WITHOUT THE SUPPORT OF THE PROGRAM.
   3.  IN ALLOCATING FUNDS, THE AUTHORITY SHALL ALSO, WHERE POSSIBLE, AIM
 TO GEOGRAPHICALLY DISTRIBUTE FUNDS IN AN  EQUITABLE  MANNER  ACROSS  THE
 STATE, TAKING INTO ACCOUNT POPULATION DENSITY.

 S. 7645                            28
 
   4.  THE  AUTHORITY  SHALL  ENCOURAGE  ELIGIBLE  APPLICANTS  TO PROPOSE
 PROJECTS IN PARTNERSHIP WITH OTHER ELIGIBLE APPLICANTS, AND WITH  THIRD-
 PARTY ENTITIES.
   § 1921. CONSULTATION WITH THE ADVISORY COUNCIL. IN CONSULTING WITH THE
 ADVISORY  COUNCIL  IN THE COURSE OF IMPLEMENTING THE PROGRAM ESTABLISHED
 UNDER THIS SUBTITLE, THE AUTHORITY SHALL:
   1. CONVENE CONSULTATION MEETINGS WITH THE ADVISORY  COUNCIL  NOT  LESS
 FREQUENTLY THAN FOUR TIMES ANNUALLY;
   2. PROVIDE NOTICE OF ADVISORY COUNCIL MEETINGS TO ALL ADVISORY COUNCIL
 MEMBERS NOT LESS THAN THIRTY DAYS BEFORE THE DATE OF THE MEETING; AND
   3.  PROVIDE  ELECTRONIC  COPIES OR HARD COPIES OF ANY WRITTEN OR OTHER
 INFORMATIONAL MATERIALS TO BE DISCUSSED  AT  A  GIVEN  ADVISORY  COUNCIL
 MEETING  TO ALL ADVISORY COUNCIL MEMBERS NOT LESS THAN THIRTY DAYS PRIOR
 TO THE DATE OF THE MEETING.
   § 1922. COMPREHENSIVE APPROACH TO EXISTING STRUCTURES. IN CONSULTATION
 WITH THE ADVISORY COUNCIL, THE DEPARTMENT OF STATE, DEPARTMENT OF  HOMES
 AND COMMUNITY RENEWAL, THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION, AND
 OTHER RELEVANT STAKEHOLDERS, THE AUTHORITY SHALL:
   1. DEVELOP A MASTER PLAN TO:
   (A)  ENSURE A COMPREHENSIVE APPROACH EXISTS TO IMPROVE BUILDING ENERGY
 EFFICIENCY THAT INCLUDES ALL OF THE STATE'S EXISTING BUILDINGS;
   (B) ENSURE THAT THE STATE MEETS ITS ENERGY EFFICIENCY GOALS;
   (C) REDUCES ENERGY USE IN ALL EXISTING STRUCTURES AND NEW BUILDINGS;
   (D) IMPROVES AND PROTECTS HOUSING AFFORDABILITY; AND
   (E) INCORPORATES HEALTH AND SAFETY ASSESSMENTS AND IMPROVEMENTS.
   2. THE MASTER PLAN WILL SPECIFICALLY INCLUDE RECOMMENDATIONS FOR COOR-
 DINATED CHANGES TO THE BUILDING  AND  ENERGY  CODES,  ENERGY  EFFICIENCY
 PROGRAMS  ADMINISTERED BY THE STATE AND OTHERS, AND SPENDING PURSUANT TO
 THE CLIMATE AND COMMUNITY INVESTMENT ACT, IN ORDER TO ENSURE  THAT  MOST
 BUILDINGS  RECEIVE DEEP ENERGY EFFICIENCY RETROFITS THAT INCLUDE ASSESS-
 MENT AND IMPROVEMENTS TO HEALTH AND SAFETY.
   3. TO PREPARE THE MASTER PLAN, THE AUTHORITY  SHALL  CONVENE  RELEVANT
 STAKEHOLDERS  IN  EACH REGION OF THE STATE AT LEAST ONCE GIVING AT LEAST
 NINETY DAYS' NOTICE OF THE PROPOSED MEETING IN ORDER FOR THE  PUBLIC  TO
 ATTEND.
   §  8.  The  tax law is amended by adding two new articles 42 and 43 to
 read as follows:
                                 ARTICLE 42
                           CLIMATE POLLUTION FEE
 SECTION 3039. DEFINITIONS.
         3040. IMPOSITION OF CARBON POLLUTION FEE.
         3041. AMOUNT OF FEE.
         3042. APPLICABLE ENTITIES.
         3043. CALCULATION OF EMISSIONS FACTORS.
         3044. EXEMPTIONS AND DEDUCTIONS.
         3045. EMISSIONS LEAKAGE MITIGATION POLICY.
         3046. CREATION OF TRUST FUNDS.
         3047. REPORTING.
   § 3039. DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE,  THE  FOLLOWING
 TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   1.  "AUTHORITY"  SHALL  HAVE THE SAME MEANING AS IN SUBDIVISION TWO OF
 SECTION EIGHTEEN HUNDRED FIFTY-ONE OF THE PUBLIC AUTHORITIES LAW.
   2. "BORDER CARBON ADJUSTMENT" MEANS A POLICY MEASURE TO ADDRESS  EMIS-
 SIONS  LEAKAGE  THAT  ADJUSTS  THE  PRICE OF A GOOD, AT THE POINT OF THE
 IMPORTATION INTO THE STATE OF GOODS THAT REQUIRE EMISSIONS OF GREENHOUSE
 GASES FOR THEIR PRODUCTION OR OPERATION, OR EXPORT FROM  THE  STATE,  TO

 S. 7645                            29
 
 REFLECT THE KNOWN OR ESTIMATED GREENHOUSE GAS EMISSIONS QUANTITIES ASSO-
 CIATED WITH THE PRODUCTION OF SUCH GOOD.
   3.  "CARBON-BASED  FUEL" MEANS COAL, A PETROLEUM PRODUCT, NATURAL GAS,
 METHANE, MUNICIPAL SOLID WASTE (OR ANY OTHER FEEDSTOCKS USED FOR  WASTE-
 TO-ENERGY  CONVERSIONS),  OR  BIOMASS THAT MAY BE A SOURCE OF GREENHOUSE
 GAS EMISSIONS THROUGH COMBUSTION AND FUGITIVE EMISSIONS.
   4. "CARBON DIOXIDE EQUIVALENT" AND "CO2E" MEAN THE  AMOUNT  OF  CARBON
 DIOXIDE  BY  MASS THAT WOULD PRODUCE THE SAME GLOBAL WARMING IMPACT AS A
 GIVEN MASS OF ANOTHER GREENHOUSE  GAS  OVER  AN  INTEGRATED  TWENTY-YEAR
 TIMEFRAME AFTER EMISSION, BASED ON THE BEST AVAILABLE SCIENCE.
   5.  "REGULATED  AIR  CONTAMINANT"  SHALL  HAVE  THE SAME MEANING AS IN
 SUBDIVISION TWENTY-TWO OF SECTION 19-0107 OF THE ENVIRONMENTAL CONSERVA-
 TION LAW.
   6. "COMMISSIONER" MEANS THE COMMISSIONER OF TAXATION AND FINANCE.
   7. "DISADVANTAGED COMMUNITIES" MEANS COMMUNITIES THAT BEAR BURDENS  OF
 NEGATIVE  PUBLIC  HEALTH  EFFECTS,  ENVIRONMENTAL  POLLUTION, IMPACTS OF
 CLIMATE CHANGE, AND POSSESS CERTAIN SOCIOECONOMIC CRITERIA,  AS  IDENTI-
 FIED PURSUANT TO SECTION 74-0103 OF THE ENVIRONMENTAL CONSERVATION LAW.
   8.  "DOWNSTATE  REGION" MEANS THE COUNTIES OF RICHMOND, KINGS, QUEENS,
 NEW YORK, BRONX, WESTCHESTER, NASSAU AND SUFFOLK.
   9. "EMISSIONS LEAKAGE" MEANS AN INCREASE IN EMISSIONS OUTSIDE  OF  THE
 STATE,  AS  A  RESULT  OF, OR IN CORRELATION WITH, THE IMPLEMENTATION OF
 MEASURES WITHIN THE STATE TO LIMIT SUCH EMISSIONS.
   10. "FUGITIVE EMISSIONS" MEANS THOSE EMISSIONS  OF  A  GREENHOUSE  GAS
 THAT  ARE  RELEASED  DURING  EXTRACTION,  TRANSPORTATION OF FUEL, DURING
 PROCESSING, AND DUE TO LEAKS DURING INDUSTRIAL  PROCESSES  OR  AT  SOLID
 WASTE AND WASTEWATER MANAGEMENT SITES.
   11.  "GREENHOUSE  GAS"  SHALL  HAVE THE SAME MEANING AS IN SUBDIVISION
 EIGHT OF SECTION 19-1301 OF THE ENVIRONMENTAL CONSERVATION LAW.
   12. "GREENHOUSE GAS EMISSION SOURCE" OR "SOURCE" MEANS  ANY  ANTHROPO-
 GENIC  SOURCE  OR  CATEGORY  OF  ANTHROPOGENIC SOURCES OF GREENHOUSE GAS
 EMISSIONS.
   13. "INDUSTRIAL PROCESSES" MEANS THOSE PROCESSES THAT  INCLUDE  FOSSIL
 FUEL EXTRACTION, THE OPERATION OF FUEL PROCESSING PLANTS, PIPELINE OPER-
 ATIONS  AND  OTHER FUEL TRANSPORT, THE OPERATION OF FUEL REFINERIES, AND
 OTHER PROCESSES INVOLVED IN THE EXTRACTION, REFINEMENT OR  TRANSPORT  OF
 CARBON-BASED FUELS.
   14.  "LIFE  CYCLE  ANALYSIS" MEANS A METHOD FOR CALCULATING GREENHOUSE
 GAS EMISSIONS THAT ENCOMPASSES EMISSIONS THAT ARE  RELEASED  OR  SEQUES-
 TERED  DURING  ALL  PHASES  OF A FUEL OR OTHER PRODUCT'S LIFE, INCLUDING
 THOSE  EMISSIONS  RELEASED  DURING  EXTRACTION,  PROCESSING,  TRANSPORT,
 DISTRIBUTION,  COMBUSTION  (OR  SOME  OTHER  FORM  OF  CONSUMPTION), AND
 DISPOSAL. SUCH TERM  SHALL  INCLUDE  CO2E  THAT  IS  SEQUESTERED  DURING
 BIOLOGICAL PROCESSES, PERTAINING TO BIOMASS FUEL.
   15.  "PETROLEUM  PRODUCT"  MEANS ALL PETROLEUM DERIVATIVES, WHETHER IN
 BOND OR NOT, WHICH ARE COMMONLY BURNED TO PRODUCE HEAT, ELECTRICITY,  OR
 MOTION,  OR  WHICH  ARE  COMMONLY PROCESSED TO PRODUCE SYNTHETIC GAS FOR
 BURNING, INCLUDING WITHOUT LIMITATION, PROPANE, GASOLINE, UNLEADED GASO-
 LINE, KEROSENE, HEATING OIL, DIESEL FUEL, KEROSENE BASED JET  FUEL,  AND
 NUMBER  4,  NUMBER  5 AND RESIDUAL OIL FOR UTILITY AND NON-UTILITY USES,
 BUT NOT INCLUDING, PETROLEUM FEEDSTOCKS TO PLASTICS PRODUCTION OR  OTHER
 MANUFACTURING.
   16.  "UPSTATE  REGION"  MEANS ALL NEW YORK COUNTIES OTHER THAN NASSAU,
 SUFFOLK, RICHMOND, KINGS, QUEENS, NEW YORK, BRONX AND WESTCHESTER.
   17. "WORKING GROUP" MEANS THE CLIMATE JUSTICE  WORKING  GROUP  CREATED
 PURSUANT TO SECTION 74-0103 OF THE ENVIRONMENTAL CONSERVATION LAW.

 S. 7645                            30
 
   §  3040.  IMPOSITION OF CARBON POLLUTION FEE.  THERE IS HEREBY IMPOSED
 UPON ANY APPLICABLE ENTITY, AS SPECIFIED UNDER  SECTION  THREE  THOUSAND
 FORTY-TWO  OF THIS ARTICLE, A FEE, IN AN AMOUNT DETERMINED UNDER SECTION
 THREE THOUSAND FORTY-ONE OF THIS ARTICLE, ON:
   1.  ANY  CARBON-BASED FUEL SOLD, USED, OR BROUGHT INTO THE STATE BY AN
 APPLICABLE ENTITY AS DEFINED IN SECTION THREE THOUSAND FORTY-TWO OF THIS
 ARTICLE; AND
   2. ANY FUGITIVE EMISSIONS OF METHANE EMITTED IN THE STATE BY AN APPLI-
 CABLE ENTITY.
   § 3041. AMOUNT OF FEE.  1. THE AMOUNT OF THE FEE  IMPOSED  BY  SECTION
 THREE  THOUSAND  FORTY  OF THIS ARTICLE, PER SHORT TON OF CARBON DIOXIDE
 EQUIVALENT CONTENT THAT WOULD BE EMITTED THROUGH THE COMBUSTION OF  SUCH
 PRODUCT,  AS  DETERMINED  BY  THE  COMMISSIONER IN CONSULTATION WITH THE
 COMMISSIONER OF ENVIRONMENTAL CONSERVATION, PURSUANT  TO  THIS  ARTICLE,
 SHALL BE EQUAL TO:
   (A)  FOR  ANY  CARBON-BASED FUEL SOLD, USED, OR ENTERED INTO THE STATE
 DURING CALENDAR YEAR TWO THOUSAND EIGHTEEN, THIRTY-FIVE DOLLARS;
   (B) FOR ANY CARBON-BASED FUEL SOLD, USED, OR ENTERED  INTO  THE  STATE
 DURING  ANY  CALENDAR  YEAR  AFTER  TWO THOUSAND EIGHTEEN AND BEFORE TWO
 THOUSAND TWENTY-TWO, AN AMOUNT EQUAL TO THE SUM OF:
   (I) THE PRODUCT OF THE AMOUNT IN EFFECT UNDER THIS SUBDIVISION FOR THE
 PRECEDING CALENDAR YEAR AND ONE HUNDRED FIVE PERCENT, AND
   (II) THE PRODUCT OF THE AMOUNT DETERMINED UNDER  SUBPARAGRAPH  (I)  OF
 THIS PARAGRAPH FOR SUCH YEAR AND A COST-OF-LIVING, OR INFLATION, ADJUST-
 MENT  USING  THE UNITED STATES BUREAU OF LABOR STATISTICS CONSUMER PRICE
 INDEX OR, IF THAT INDEX IS NOT AVAILABLE, ANOTHER INDEX ADOPTED  BY  THE
 COMMISSIONER;
   (C)  FOR  ANY  CARBON-BASED FUEL SOLD, USED, OR ENTERED INTO THE STATE
 DURING ANY CALENDAR YEAR AFTER TWO THOUSAND TWENTY-ONE  AND  BEFORE  TWO
 THOUSAND THIRTY-TWO, AN AMOUNT EQUAL TO THE SUM OF:
   (I) THE PRODUCT OF THE AMOUNT IN EFFECT UNDER THIS SUBDIVISION FOR THE
 PRECEDING CALENDAR YEAR, AND:
   (A) ONE HUNDRED TWO PERCENT IF THE MOST RECENT FIVE-YEAR ENVIRONMENTAL
 INTEGRITY  METRIC,  DESCRIBED  UNDER PARAGRAPH (A) OF SUBDIVISION TWO OF
 THIS SECTION, IS LESS THAN MINUS FIVE PERCENT;
   (B) ONE HUNDRED FIVE PERCENT IF THE  MOST  RECENT  FIVE-YEAR  ENVIRON-
 MENTAL  INTEGRITY  METRIC,  DESCRIBED UNDER PARAGRAPH (A) OF SUBDIVISION
 TWO OF THIS SECTION, IS GREATER THAN OR EQUAL TO MINUS FIVE PERCENT  AND
 LESS THAN FIVE PERCENT;
   (C)  ONE  HUNDRED  SEVEN PERCENT IF THE MOST RECENT FIVE-YEAR ENVIRON-
 MENTAL INTEGRITY METRIC, DESCRIBED UNDER PARAGRAPH  (A)  OF  SUBDIVISION
 TWO  OF  THIS SECTION, IS GREATER THAN OR EQUAL TO FIVE PERCENT AND LESS
 THAN TEN PERCENT;
   (D) ONE HUNDRED TEN PERCENT IF THE MOST RECENT FIVE-YEAR ENVIRONMENTAL
 INTEGRITY METRIC, DESCRIBED UNDER PARAGRAPH (A) OF  SUBDIVISION  TWO  OF
 THIS SECTION, IS GREATER THAN OR EQUAL TO TEN PERCENT; AND
   (II)  THE  PRODUCT  OF THE AMOUNT DETERMINED UNDER SUBPARAGRAPH (I) OF
 THIS PARAGRAPH FOR SUCH YEAR AND A COST-OF-LIVING, OR INFLATION, ADJUST-
 MENT USING THE UNITED STATES BUREAU OF LABOR STATISTICS  CONSUMER  PRICE
 INDEX  OR,  IF THAT INDEX IS NOT AVAILABLE, ANOTHER INDEX ADOPTED BY THE
 COMMISSIONER;
   (D) FOR ANY CARBON-BASED FUEL SOLD, USED, OR ENTERED  INTO  THE  STATE
 DURING  ANY  CALENDAR  YEAR AFTER TWO THOUSAND THIRTY-ONE AND BEFORE TWO
 THOUSAND FIFTY-ONE, AN AMOUNT EQUAL TO THE SUM OF:
   (I) THE PRODUCT OF THE AMOUNT IN EFFECT UNDER THIS SUBDIVISION FOR THE
 PRECEDING CALENDAR YEAR, AND:

 S. 7645                            31
 
   (A) ONE HUNDRED TWO PERCENT IF THE MOST RECENT FIVE-YEAR ENVIRONMENTAL
 INTEGRITY METRIC, DESCRIBED UNDER PARAGRAPH (A) OF  SUBDIVISION  TWO  OF
 THIS SECTION, IS LESS THAN MINUS FIVE PERCENT, AND THE MOST RECENT CUMU-
 LATIVE  ENVIRONMENTAL INTEGRITY METRIC, DESCRIBED UNDER PARAGRAPH (B) OF
 SUBDIVISION TWO OF THIS SECTION, IS LESS THAN MINUS ONE PERCENT;
   (B) ONE HUNDRED FIVE PERCENT IF:
   I. THE MOST RECENT FIVE-YEAR ENVIRONMENTAL INTEGRITY METRIC, DESCRIBED
 UNDER  PARAGRAPH (A) OF SUBDIVISION TWO OF THIS SECTION, IS GREATER THAN
 OR EQUAL TO MINUS FIVE PERCENT AND LESS THAN FIVE PERCENT, AND THE  MOST
 RECENT  CUMULATIVE ENVIRONMENTAL INTEGRITY METRIC, DESCRIBED UNDER PARA-
 GRAPH (B) OF SUBDIVISION TWO OF THIS SECTION, IS LESS THAN TWO  PERCENT;
 OR
   II.   THE  MOST  RECENT  CUMULATIVE  ENVIRONMENTAL  INTEGRITY  METRIC,
 DESCRIBED UNDER PARAGRAPH (B) OF SUBDIVISION TWO  OF  THIS  SECTION,  IS
 GREATER  THAN  OR  EQUAL TO MINUS ONE PERCENT AND LESS THAN TWO PERCENT,
 AND THE MOST RECENT FIVE-YEAR ENVIRONMENTAL INTEGRITY METRIC,  DESCRIBED
 UNDER  PARAGRAPH  (A)  OF  SUBDIVISION TWO OF THIS SECTION, IS LESS THAN
 FIVE PERCENT, AND;
   (C) ONE HUNDRED SEVEN PERCENT IF:
   I. THE MOST RECENT FIVE-YEAR ENVIRONMENTAL INTEGRITY METRIC, DESCRIBED
 UNDER PARAGRAPH (A) OF SUBDIVISION TWO OF THIS SECTION, IS GREATER  THAN
 OR  EQUAL  TO  FIVE  PERCENT  AND LESS THAN TEN PERCENT, AND IF THE MOST
 RECENT CUMULATIVE ENVIRONMENTAL INTEGRITY METRIC, DESCRIBED UNDER  PARA-
 GRAPH  (B)  OF  SUBDIVISION  TWO  OF  THIS  SECTION,  IS LESS THAN THREE
 PERCENT; OR
   II.  THE  MOST  RECENT  CUMULATIVE  ENVIRONMENTAL  INTEGRITY   METRIC,
 DESCRIBED  UNDER  PARAGRAPH  (B)  OF SUBDIVISION TWO OF THIS SECTION, IS
 GREATER THAN OR EQUAL TO TWO PERCENT AND LESS THAN  THREE  PERCENT,  AND
 THE  MOST  RECENT  FIVE-YEAR  ENVIRONMENTAL  INTEGRITY METRIC, DESCRIBED
 UNDER PARAGRAPH (A) OF SUBDIVISION TWO OF THIS SECTION, IS LESS THAN TEN
 PERCENT, AND;
   (D) ONE HUNDRED TEN PERCENT IF:
   I. THE MOST RECENT FIVE-YEAR ENVIRONMENTAL INTEGRITY METRIC, DESCRIBED
 UNDER PARAGRAPH (A) OF SUBDIVISION TWO OF THIS SECTION, IS GREATER  THAN
 OR EQUAL TO TEN PERCENT; OR
   II.   THE  MOST  RECENT  CUMULATIVE  ENVIRONMENTAL  INTEGRITY  METRIC,
 DESCRIBED UNDER PARAGRAPH (B) OF SUBDIVISION TWO  OF  THIS  SECTION,  IS
 GREATER THAN OR EQUAL TO THREE PERCENT; AND
   (II)  THE  PRODUCT  OF THE AMOUNT DETERMINED UNDER SUBPARAGRAPH (I) OF
 THIS PARAGRAPH FOR SUCH YEAR AND A COST-OF-LIVING, OR INFLATION, ADJUST-
 MENT USING THE UNITED STATES BUREAU OF LABOR STATISTICS  CONSUMER  PRICE
 INDEX  OR,  IF THAT INDEX IS NOT AVAILABLE, ANOTHER INDEX ADOPTED BY THE
 COMMISSIONER;
   (E) FOR ANY CARBON-BASED FUEL SOLD, USED, OR ENTERED  INTO  THE  STATE
 DURING  ANY  CALENDAR  YEAR AFTER TWO THOUSAND FIFTY, AN AMOUNT EQUAL TO
 THE SUM OF:
   (I) THE AMOUNT IN EFFECT UNDER  THIS  SUBDIVISION  FOR  THE  PRECEDING
 CALENDAR YEAR; AND
   (II)  THE  PRODUCT  OF THE AMOUNT DETERMINED UNDER SUBPARAGRAPH (I) OF
 THIS PARAGRAPH FOR SUCH YEAR AND A COST-OF-LIVING, OR INFLATION, ADJUST-
 MENT USING THE UNITED STATES BUREAU OF LABOR STATISTICS  CONSUMER  PRICE
 INDEX  OR,  IF THAT INDEX IS NOT AVAILABLE, ANOTHER INDEX ADOPTED BY THE
 COMMISSIONER.
   2. IN TWO THOUSAND TWENTY-ONE, AND EVERY FIVE  YEARS  THEREAFTER,  THE
 COMMISSIONER SHALL, IN CONSULTATION WITH THE DEPARTMENT OF ENVIRONMENTAL
 CONSERVATION:

 S. 7645                            32
 
   (A)  CALCULATE  THE  FIVE-YEAR  ENVIRONMENTAL  INTEGRITY METRIC, WHICH
 SHALL EQUAL A FRACTION, EXPRESSED AS A PERCENTAGE:
   (I) THE NUMERATOR OF WHICH IS:
   (A)  THE  SUM OF THE QUANTITY OF ACTUAL STATEWIDE GREENHOUSE GAS EMIS-
 SIONS, MEASURED IN SHORT TONS CO2E, IN EACH OF THE PRECEDING FIVE YEARS,
 MINUS
   (B) THE SUM OF THE QUANTITY OF TARGET STATEWIDE GREENHOUSE  GAS  EMIS-
 SIONS, MEASURED IN SHORT TONS CO2E, IN EACH OF THE PRECEDING FIVE YEARS,
 PURSUANT TO SUBDIVISION FOUR OF THIS SECTION; AND
   (II)  THE  DENOMINATOR  OF  WHICH IS THE SUM OF THE QUANTITY OF TARGET
 STATEWIDE GREENHOUSE GAS EMISSIONS, MEASURED IN SHORT TONS CO2E, IN EACH
 OF THE PRECEDING FIVE  YEARS,  PURSUANT  TO  SUBDIVISION  FOUR  OF  THIS
 SECTION; AND
   (B)  CALCULATE  THE  CUMULATIVE  ENVIRONMENTAL INTEGRITY METRIC, WHICH
 SHALL EQUAL A FRACTION, EXPRESSED AS A PERCENTAGE:
   (I) THE NUMERATOR OF WHICH IS:
   (A) THE SUM OF THE QUANTITY OF ACTUAL STATEWIDE GREENHOUSE  GAS  EMIS-
 SIONS,  MEASURED IN SHORT TONS CO2E, IN EACH OF THE PRECEDING YEARS THAT
 ARE AFTER TWO THOUSAND SEVENTEEN, MINUS
   (B) THE SUM OF THE QUANTITY OF TARGET STATEWIDE GREENHOUSE  GAS  EMIS-
 SIONS,  MEASURED IN SHORT TONS CO2E, IN EACH OF THE PRECEDING YEARS THAT
 ARE AFTER TWO THOUSAND SEVENTEEN, PURSUANT TO SUBDIVISION FOUR  OF  THIS
 SECTION; AND
   (II)  THE  DENOMINATOR  OF  WHICH IS THE SUM OF THE QUANTITY OF TARGET
 STATEWIDE GREENHOUSE GAS EMISSIONS, MEASURED IN SHORT TONS CO2E, IN EACH
 OF THE PRECEDING YEARS THAT ARE AFTER TWO THOUSAND  SEVENTEEN,  PURSUANT
 TO SUBDIVISION FOUR OF THIS SECTION; AND
   (C)  PUBLISH  THE AMOUNTS CALCULATED IN PARAGRAPHS (A) AND (B) OF THIS
 SUBDIVISION NOT LATER THAN JULY FIRST IN THAT YEAR.
   3. THE COMMISSIONER SHALL CALCULATE AND PUBLISH THE AMOUNT OF THE  FEE
 IN CURRENT DOLLARS FOR EACH YEAR, NO LATER THAN JULY FIRST IN THAT YEAR.
   4.  FOR THE PURPOSES OF CALCULATING THE FIVE-YEAR ENVIRONMENTAL INTEG-
 RITY METRIC AND THE  CUMULATIVE  ENVIRONMENTAL  INTEGRITY  METRIC  UNDER
 SUBDIVISION  TWO  OF  THIS  SECTION, THE COMMISSIONER SHALL REFER TO THE
 FOLLOWING STATEWIDE GREENHOUSE GAS EMISSIONS TARGETS:
   (A) FOR THE YEAR TWO THOUSAND TWENTY,  EIGHTY-FIVE  PERCENT  OF  EMIS-
 SIONS;
   (B)  FOR  EACH  YEAR AFTER TWO THOUSAND TWENTY AND BEFORE TWO THOUSAND
 TWENTY-SIX, FOUR PERCENT LESS THAN THE PREVIOUS YEAR; AND
   (C) FOR EACH YEAR AFTER TWO THOUSAND TWENTY-FIVE AND BEFORE TWO  THOU-
 SAND FORTY-ONE, THREE PERCENT LESS THAN THE PREVIOUS YEAR; AND
   (D)  FOR EACH YEAR AFTER TWO THOUSAND FORTY, TWO PERCENT LESS THAN THE
 PREVIOUS YEAR.
   § 3042. APPLICABLE ENTITIES. FOR THE PURPOSES  OF  THIS  ARTICLE,  THE
 TERM "APPLICABLE ENTITY" MEANS:
   1. FOR THE PURPOSES OF ANY COAL SOLD, USED, OR ENTERED INTO THE STATE:
   (A) THE VENDOR OF SUCH COAL AT THE FIRST POINT OF SALE, IN CASES WHERE
 THE SALE OF COAL OCCURS IN THE STATE; AND
   (B) THE PURCHASER OF SUCH COAL, IN CASES WHERE THE SALE OF COAL OCCURS
 OUTSIDE OF THE STATE;
   2.  FOR  THE  PURPOSES OF ANY PETROLEUM PRODUCT SOLD, USED, OR ENTERED
 INTO THE STATE:
   (A) THE VENDOR, INCLUDING A PETROLEUM BUSINESS AS DEFINED  BY  SECTION
 THREE  HUNDRED  OF  THIS CHAPTER, OF SUCH PETROLEUM PRODUCT AT THE FIRST
 POINT OF SALE, IN CASES WHERE THE SALE OF THE PETROLEUM  PRODUCT  OCCURS
 IN THE STATE; AND

 S. 7645                            33
 
   (B)  THE  PURCHASER OF SUCH PETROLEUM PRODUCT, IN CASES WHERE THE SALE
 OF THE PETROLEUM PRODUCT OCCURS OUTSIDE OF THE STATE;
   3. FOR THE PURPOSES OF ANY NATURAL GAS SOLD, USED, OR ENTERED INTO THE
 STATE:
   (A) THE VENDOR (INCLUDING A NATURAL GAS DISTRIBUTION COMPANY OR WHOLE-
 SALE  NATURAL  GAS  VENDORS)  OF  SUCH NATURAL GAS AT THE FIRST POINT OF
 SALE, IN CASES WHERE THE SALE OF NATURAL GAS OCCURS IN THE STATE; AND
   (B) THE PURCHASER OF SUCH NATURAL GAS, IN CASES WHERE THE SALE OF  THE
 NATURAL GAS OCCURS OUTSIDE OF THE STATE;
   4. FOR THE PURPOSES OF ANY ELECTRICITY SOLD, USED, OR ENTERED INTO THE
 STATE:
   (A)  THE VENDOR (INCLUDING A LOCAL ELECTRICITY DISTRIBUTION COMPANY, A
 WHOLESALE ELECTRICITY VENDOR AND ALL COMPETITIVE SUPPLIERS OF  ELECTRIC-
 ITY  TO  END  USERS)  OF SUCH ELECTRICITY AT THE FIRST POINT OF SALE, IN
 CASES WHERE THE SALE OF ELECTRICITY OCCURS IN THE STATE; AND
   (B) THE PURCHASER OF SUCH ELECTRICITY, IN CASES WHERE THE SALE OF  THE
 ELECTRICITY OCCURS OUTSIDE OF THE STATE;
   5.  FOR THE PURPOSES OF ANY MUNICIPAL SOLID WASTE (OR ANY OTHER FEEDS-
 TOCKS USED FOR WASTE-TO-ENERGY CONVERSIONS) SOLD, USED, OR ENTERED  INTO
 THE STATE:
   (A)  THE VENDOR OF SUCH MUNICIPAL SOLID WASTE (OR ANY OTHER FEEDSTOCKS
 USED FOR WASTE-TO-ENERGY CONVERSIONS) AT THE FIRST  POINT  OF  SALE,  IN
 CASES  WHERE  THE SALE OF MUNICIPAL SOLID WASTE (OR ANY OTHER FEEDSTOCKS
 USED FOR WASTE-TO-ENERGY CONVERSIONS) OCCURS IN THE STATE; AND
   (B) THE PURCHASER OF SUCH MUNICIPAL SOLID WASTE (OR ANY  OTHER  FEEDS-
 TOCKS  USED FOR WASTE-TO-ENERGY CONVERSIONS), IN CASES WHERE THE SALE OF
 THE MUNICIPAL SOLID WASTE (OR ANY OTHER FEEDSTOCKS USED FOR WASTE-TO-EN-
 ERGY CONVERSIONS) OCCURS OUTSIDE OF THE STATE;
   6. FOR THE PURPOSES OF ANY BIOMASS SOLD, USED,  OR  ENTERED  INTO  THE
 STATE,
   (A)  THE  VENDOR  OF SUCH BIOMASS AT THE FIRST POINT OF SALE, IN CASES
 WHERE THE SALE OF BIOMASS OCCURS IN THE STATE; AND
   (B) THE PURCHASER OF SUCH BIOMASS, IN CASES  WHERE  THE  SALE  OF  THE
 BIOMASS OCCURS OUTSIDE OF THE STATE; AND
   7.  FOR  THE PURPOSES OF ANY FUGITIVE EMISSIONS OF METHANE RELEASED IN
 THE STATE, THE OWNER OF THE PROPERTY THAT IS THE SOURCE OF SUCH FUGITIVE
 EMISSIONS, INCLUDING STATIONARY SOURCES AND MOBILE SOURCES, AND  INCLUD-
 ING  PIPELINE OPERATORS, FUEL DISTRIBUTORS, TRANSPORTATION COMPANIES AND
 OTHER ENTITIES.
   § 3043. CALCULATION OF EMISSIONS FACTORS. 1. NOT LATER THAN  ONE  YEAR
 AFTER  THE  EFFECTIVE DATE OF THIS ARTICLE, THE COMMISSIONER OF ENVIRON-
 MENTAL CONSERVATION, IN COLLABORATION WITH THE COMMISSIONER, SHALL,  FOR
 EACH CARBON-BASED FUEL IDENTIFIED IN THIS ARTICLE AND FOR VARIOUS SOURC-
 ES  OF ELECTRICITY CONSUMED IN THE STATE, CALCULATE GREENHOUSE GAS EMIS-
 SIONS FACTORS, IN CARBON DIOXIDE EQUIVALENT.
   2. EMISSIONS FACTORS ASSOCIATED WITH COMBUSTION OR  OTHER  CONSUMPTION
 OF THE CARBON-BASED FUELS IDENTIFIED IN THIS ARTICLE SHALL BE CALCULATED
 ACCORDING  TO  LIFE-CYCLE  ANALYSIS  METHODS,  WHICH  AT A MINIMUM SHALL
 INCORPORATE:
   (A) ANY GREENHOUSE GASES RELEASED AT THE POINT OF COMBUSTION OR  OTHER
 CONSUMPTION; AND
   (B)  UP-STEAM  FUGITIVE  EMISSIONS  OF  METHANE  RELEASED  DURING  THE
 EXTRACTION, PROCESSING, REFINING, TRANSPORT, OR DISTRIBUTION OF  NATURAL
 GAS  PRODUCTS  AND PETROLEUM PRODUCTS BEFORE THE POINT OF CONSUMPTION IN
 NEW YORK.

 S. 7645                            34
 
   3. THE COMMISSIONER OF ENVIRONMENTAL  CONSERVATION,  IN  COLLABORATION
 WITH THE COMMISSIONER, SHALL CALCULATE, FOR VARIOUS SOURCES OF ELECTRIC-
 ITY  CONSUMED  IN THE STATE, GREENHOUSE GAS EMISSIONS FACTORS, IN CARBON
 DIOXIDE EQUIVALENT PER KILOWATT-HOUR, ASSOCIATED WITH THE COMBUSTION  OF
 EACH  CARBON-BASED  FUEL  IDENTIFIED IN THIS ARTICLE FOR THE PURPOSES OF
 GENERATING ELECTRICITY. THIS CALCULATION SHOULD TAKE  INTO  ACCOUNT  THE
 BEST  AVAILABLE INFORMATION AND SCIENCE REGARDING POWER PLANT HEAT RATES
 AND OTHER OPERATIONAL PARAMETERS THAT MAY DETERMINE  EFFICIENCY  IN  THE
 CONVERSION  OF  THERMAL  ENERGY  TO  ELECTRICAL ENERGY. THE C02E OF EACH
 KILOWATT-HOUR OF ELECTRICITY DELIVERED IN THE STATE SHALL BE  DETERMINED
 BY  TAKING  THE WEIGHTED AVERAGE OF THE COAL, PETROLEUM PRODUCT, NATURAL
 GAS, MUNICIPAL SOLID WASTE (OR ANY OTHER FEEDSTOCKS USED  FOR  WASTE-TO-
 ENERGY CONSERVATIONS), OR BIOMASS PORTIONS OF THE FUEL MIX AND MULTIPLY-
 ING  EACH  OF  THOSE PORTIONS SEPARATELY BY THE AMOUNT OF CARBON DIOXIDE
 EQUIVALENT EMISSIONS CREATED PER KILOWATT-HOUR OF  ELECTRICITY  PRODUCED
 BY  EACH  SUCH  FUEL.  THE  CALCULATION  OF EMISSIONS FACTORS UNDER THIS
 SUBDIVISION SHALL TAKE INTO ACCOUNT  ALL  ELECTRICITY  CONSUMED  IN  THE
 STATE, WHICH SHALL INCLUDE ANY ELECTRICITY PRODUCED WITHIN THE STATE AND
 OUTSIDE OF THE STATE.
   §  3044.  EXEMPTIONS AND DEDUCTIONS.  1. ANY APPLICABLE ENTITY COVERED
 BY THE REGIONAL GREENHOUSE GAS INITIATIVE SHALL BE  ENTITLED  TO  DEDUCT
 FROM  THE  FEE  IMPOSED BY THIS ARTICLE AN AMOUNT EQUAL TO THE AMOUNT IT
 PAID FOR THE SAME YEAR ON ACCOUNT OF THE REGIONAL GREENHOUSE GAS  INITI-
 ATIVE;  PROVIDED, HOWEVER, THAT THE AMOUNT SO DEDUCTED MAY BE NO GREATER
 THAN THE TOTAL AMOUNT OF THE FEE AS CALCULATED IN THIS ARTICLE.
   2. ANY APPLICABLE ENTITY SUBJECT TO A FEE UNDER THIS ARTICLE, SHALL BE
 ENTITLED TO DEDUCT FROM THE FEE IMPOSED BY THIS ARTICLE AN AMOUNT  EQUAL
 TO  THE  AMOUNT IT PAID FOR THE SAME YEAR ON ACCOUNT OF A FEDERAL LAW OR
 REGULATION THAT IMPOSES A DIRECT PRICE (INCLUDING THROUGH CAP-AND-TRADE,
 OR A CARBON TAX OR CARBON FEE MECHANISMS) ON  THE  SAME  GREENHOUSE  GAS
 EMISSIONS FROM CARBON-BASED FUELS; PROVIDED, HOWEVER, THAT THE AMOUNT SO
 DEDUCTED  MAY  BE  NO GREATER THAN THE TOTAL AMOUNT OF THE FEE AS CALCU-
 LATED IN THIS ARTICLE.
   3. THE COMMISSIONER, IN PARTNERSHIP WITH THE COMMISSIONER OF  ENVIRON-
 MENTAL  CONSERVATION, MAY EXEMPT CERTAIN SOURCES OF GREENHOUSE GAS EMIS-
 SIONS FOUND TO PRODUCE DE MINIMIS QUANTITIES OF SUCH EMISSIONS. IN ORDER
 TO EXEMPT SOURCES OF GREENHOUSE GAS EMISSIONS  UNDER  THIS  SUBDIVISION,
 THE  COMMISSIONER, IN PARTNERSHIP WITH THE COMMISSIONER OF ENVIRONMENTAL
 CONSERVATION, SHALL FIRST PROMULGATE A RULE,  OR  RULES,  OUTLINING  THE
 SPECIFIC  REQUIREMENTS  FOR  BEING  CLASSIFIED  AS  A DE MINIMIS SOURCE,
 INCLUDING, AT A MINIMUM, IDENTIFYING THE QUANTITIES OF GREENHOUSE  GASES
 THAT WOULD MAKE A SOURCE A DE MINIMIS SOURCE. IN PROMULGATING SUCH RULE,
 OR  RULES,  THE  COMMISSIONER SHALL PROVIDE MEANINGFUL OPPORTUNITIES FOR
 PUBLIC COMMENT, INCLUDING FROM PERSONS LIVING IN DISADVANTAGED  COMMUNI-
 TIES.
   §  3045.  EMISSIONS  LEAKAGE MITIGATION POLICY.  1. NOT LATER THAN ONE
 YEAR AFTER THE EFFECTIVE DATE OF  THIS  ARTICLE,  THE  COMMISSIONER,  IN
 PARTNERSHIP  WITH  THE  COMMISSIONERS  OF ENVIRONMENTAL CONSERVATION AND
 LABOR AND THE PRESIDENT OF THE AUTHORITY, SHALL PREPARE  AND  APPROVE  A
 SCOPING  PLAN  OUTLINING  RECOMMENDATIONS  FOR POLICY MEASURES TO REDUCE
 EMISSIONS LEAKAGE ASSOCIATED WITH THE IMPLEMENTATION OF THIS ARTICLE.
   (A) THE DRAFT SCOPING PLAN SHALL BE DEVELOPED IN CONSULTATION WITH THE
 WORKING GROUP AND OTHER STAKEHOLDERS.
   (B) THE DEPARTMENT SHALL PROVIDE MEANINGFUL OPPORTUNITIES  FOR  PUBLIC
 COMMENT  FROM  ALL  PERSONS  WHO WILL BE IMPACTED BY THE PLAN, INCLUDING

 S. 7645                            35
 
 PERSONS WORKING IN ENERGY INTENSIVE AND  TRADE  EXPOSED  INDUSTRIES  AND
 PERSONS LIVING IN DISADVANTAGED COMMUNITIES.
   (C)  THE MEASURES AND ACTIONS CONSIDERED IN SUCH SCOPING PLAN SHALL AT
 A MINIMUM INCLUDE:
   (I) THE IMPLEMENTATION OF A BORDER CARBON  ADJUSTMENT  FOR  VULNERABLE
 INDUSTRIES AND COMPANIES;
   (II) THE IMPLEMENTATION OF AN OUTPUT-BASED CARBON POLLUTION FEE REBATE
 PROGRAM FOR VULNERABLE INDUSTRIES AND COMPANIES;
   (III)  QUANTITATIVE  METHODS  FOR DESIGNATING VULNERABLE INDUSTRIES OR
 COMPANIES, SUCH AS ENERGY INTENSIVE AND TRADE EXPOSED INDUSTRIES; AND
   (IV) POLICIES FOR MITIGATING ANY  IMPACTS  TO  CONSUMERS  AND  WORKERS
 CAUSED  BY  THE IMPLEMENTATION OF POLICIES UNDER THIS SECTION, INCLUDING
 THROUGH THE USE OF REVENUES FROM A POSSIBLE BORDER CARBON ADJUSTMENT FOR
 REDUCING SUCH IMPACTS.
   (D) NOT LATER THAN ONE YEAR AFTER THE EFFECTIVE DATE OF THIS  ARTICLE,
 THE  DEPARTMENT SHALL SUBMIT THE FINAL SCOPING PLAN TO THE GOVERNOR, THE
 SPEAKER OF THE ASSEMBLY AND THE TEMPORARY PRESIDENT OF  THE  SENATE  AND
 POST SUCH PLAN ON ITS WEBSITE.
   2.  NOT LATER THAN TWO YEARS AFTER THE EFFECTIVE DATE OF THIS ARTICLE,
 THE DEPARTMENT, AFTER PUBLIC WORKSHOPS AND CONSULTATION WITH THE WORKING
 GROUP, REPRESENTATIVES OF REGULATED ENTITIES,  AND  OTHER  STAKEHOLDERS,
 SHALL,  AFTER  NO  LESS  THAN  TWO PUBLIC HEARINGS, PROMULGATE RULES AND
 REGULATIONS TO IMPLEMENT A POLICY TO REDUCE EMISSIONS LEAKAGE ASSOCIATED
 WITH THE IMPLEMENTATION OF THIS ARTICLE.
   (A) THE REGULATIONS PROMULGATED MAY INCLUDE:
   (I) A BORDER CARBON ADJUSTMENT FOR VULNERABLE  INDUSTRIES  AND  COMPA-
 NIES;
   (II)  AN  OUTPUT-BASED CARBON POLLUTION FEE REBATE PROGRAM FOR VULNER-
 ABLE INDUSTRIES AND COMPANIES;
   (III) QUANTITATIVE METHODS FOR DESIGNATING  VULNERABLE  INDUSTRIES  OR
 COMPANIES, SUCH AS ENERGY INTENSIVE AND TRADE EXPOSED INDUSTRIES; AND
   (IV)  POLICIES  FOR  MITIGATING  ANY  IMPACTS TO CONSUMERS AND WORKERS
 CAUSED BY THE IMPLEMENTATION OF POLICIES UNDER THIS  SECTION,  INCLUDING
 THROUGH THE USE OF REVENUES FROM A POSSIBLE BORDER CARBON ADJUSTMENT FOR
 REDUCING SUCH IMPACTS.
   (B) IN PROMULGATING THESE REGULATIONS, THE DEPARTMENT SHALL:
   (I)  DESIGN AND IMPLEMENT ALL REGULATIONS IN A MANNER THAT SEEKS TO BE
 EQUITABLE, TO MINIMIZE COSTS AND TO MAXIMIZE THE TOTAL BENEFITS  TO  NEW
 YORK STATE;
   (II)  ENSURE THAT ACTIVITIES UNDERTAKEN TO COMPLY WITH THE REGULATIONS
 DO NOT DISPROPORTIONATELY BURDEN DISADVANTAGED COMMUNITIES; AND
   (III) MINIMIZE EMISSIONS LEAKAGE.
   § 3046. CREATION OF TRUST FUNDS.  1. THE COMMISSIONER SHALL  ESTABLISH
 A  TRUST  FUND  TO  BE  KNOWN  AS  THE "COMMUNITY JUST TRANSITION FUND",
 CONSISTING OF SUCH AMOUNTS AS MAY BE APPROPRIATED OR  CREDITED  TO  SUCH
 FUND.
   (A) THERE IS HEREBY APPROPRIATED TO THE COMMUNITY JUST TRANSITION FUND
 FOR EACH FISCAL YEAR FOLLOWING THE EFFECTIVE DATE OF THIS ARTICLE, THIR-
 TY-THREE PERCENT OF THE TOTAL AMOUNT OF FEES RECEIVED UNDER:
   (I) SECTION THREE THOUSAND FORTY OF THIS ARTICLE DURING SUCH YEAR, AND
   (II)  SECTION  THREE  THOUSAND  FORTY-FIVE OF THIS ARTICLE DURING SUCH
 YEAR, TO THE EXTENT THAT  THE  POLICIES  PROMULGATED  PURSUANT  TO  SUCH
 SECTION GENERATE REVENUE DURING SUCH YEAR.
   (B)  THE  COMMUNITY  JUST TRANSITION FUND SHALL BE ADMINISTERED BY THE
 DIRECTOR OF THE OFFICE OF CLIMATE AND COMMUNITY  INVESTMENT  WITHIN  THE
 AUTHORITY.

 S. 7645                            36
 
   2.  THE  COMMISSIONER  SHALL ESTABLISH A TRUST FUND TO BE KNOWN AS THE
 "CLIMATE JOBS AND INFRASTRUCTURE FUND", CONSISTING OF  SUCH  AMOUNTS  AS
 MAY BE APPROPRIATED OR CREDITED TO SUCH FUND.
   (A)  THERE  IS HEREBY APPROPRIATED TO THE CLIMATE JOBS AND INFRASTRUC-
 TURE FUND FOR EACH FISCAL YEAR FOLLOWING  THE  EFFECTIVE  DATE  OF  THIS
 ARTICLE, THIRTY PERCENT OF THE TOTAL AMOUNT OF FEES RECEIVED UNDER:
   (I) SECTION THREE THOUSAND FORTY OF THIS ARTICLE DURING SUCH YEAR, AND
   (II)  SECTION  THREE  THOUSAND  FORTY-FIVE OF THIS ARTICLE DURING SUCH
 YEAR, TO THE EXTENT THAT  THE  POLICIES  PROMULGATED  PURSUANT  TO  SUCH
 SECTION GENERATE REVENUE DURING SUCH YEAR.
   (B)  THE CLIMATE JOBS AND INFRASTRUCTURE FUND SHALL BE ADMINISTERED BY
 THE DIRECTOR OF THE OFFICE OF CLIMATE AND  COMMUNITY  INVESTMENT  WITHIN
 THE AUTHORITY.
   3.  THE  COMMISSIONER  SHALL ESTABLISH A TRUST FUND TO BE KNOWN AS THE
 "LOW-INCOME AND SMALL BUSINESS ENERGY REBATE FUND", CONSISTING  OF  SUCH
 AMOUNTS AS MAY BE APPROPRIATED OR CREDITED TO SUCH FUND.
   (A)  THERE IS HEREBY APPROPRIATED TO THE LOW-INCOME AND SMALL BUSINESS
 ENERGY REBATE FUND FOR EACH FISCAL YEAR FOLLOWING THE EFFECTIVE DATE  OF
 THIS ARTICLE, THIRTY PERCENT OF THE TOTAL AMOUNT OF FEES RECEIVED UNDER:
   (I) SECTION THREE THOUSAND FORTY OF THIS ARTICLE DURING SUCH YEAR, AND
   (II)  SECTION  THREE  THOUSAND  FORTY-FIVE OF THIS ARTICLE DURING SUCH
 YEAR, TO THE EXTENT  THAT  THE  POLICES  PROMULGATED  PURSUANT  TO  SUCH
 SECTION GENERATE REVENUE DURING SUCH YEAR.
   (B)  THE  LOW-INCOME  AND  SMALL  BUSINESS ENERGY REBATE FUND SHALL BE
 ADMINISTRATED BY THE DIRECTOR OF THE OFFICE  OF  CLIMATE  AND  COMMUNITY
 INVESTMENT WITHIN THE AUTHORITY.
   4.  THE  COMMISSIONER  SHALL ESTABLISH A TRUST FUND TO BE KNOWN AS THE
 "WORKER AND COMMUNITY ASSURANCE TRUST", CONSISTING OF  SUCH  AMOUNTS  AS
 MAY BE APPROPRIATED OR CREDITED TO SUCH TRUST.
   (A)  IN THE FIRST FISCAL YEAR IN WHICH ANY FEES UNDER THIS ARTICLE ARE
 COLLECTED, NO LESS THAN FIVE HUNDRED MILLION  DOLLARS  SHALL  BE  TRANS-
 FERRED TO THE WORKER AND COMMUNITY ASSURANCE TRUST.
   (B) THERE IS HEREBY APPROPRIATED TO THE WORKER AND COMMUNITY ASSURANCE
 TRUST FOR EACH FISCAL YEAR FOLLOWING THE EFFECTIVE DATE OF THIS ARTICLE,
 SEVEN PERCENT OF THE TOTAL AMOUNT OF FEES RECEIVED UNDER:
   (I) SECTION THREE THOUSAND FORTY DURING SUCH YEAR; AND
   (II) SECTION THREE THOUSAND FORTY-FIVE DURING SUCH YEAR, TO THE EXTENT
 THAT  THE POLICIES PROMULGATED PURSUANT TO SUCH SECTION GENERATE REVENUE
 DURING SUCH YEAR.
   (C) THE WORKER AND COMMUNITY ASSURANCE TRUST SHALL BE ADMINISTERED  BY
 THE BOARD OF THE WORKER AND COMMUNITY ASSURANCE TRUST.
   5.  NO  PROCEEDS RECEIVED THROUGH THE IMPLEMENTATION OF THE FEE ESTAB-
 LISHED UNDER THIS ARTICLE SHALL FUND GOVERNMENT OPERATIONS OF THE STATE,
 OTHER THAN TO PAY FOR REASONABLE ADMINISTRATIVE  COSTS  ASSOCIATED  WITH
 IMPLEMENTING THE CLIMATE AND COMMUNITY INVESTMENT ACT.
   §  3047. REPORTING.  1. NO LATER THAN THREE YEARS FOLLOWING THE EFFEC-
 TIVE DATE OF THIS ARTICLE, AND EVERY TWO YEARS THEREAFTER,  THE  COMMIS-
 SIONER,  IN PARTNERSHIP WITH THE COMMISSIONER OF ENVIRONMENTAL CONSERVA-
 TION, SHALL PRODUCE A REPORT ON THE IMPLEMENTATION OF THIS ARTICLE. SUCH
 REPORT SHALL INCLUDE BUT NOT BE LIMITED TO:
   (A) THE TOTAL ANNUAL REVENUES ASSOCIATED WITH  THE  IMPLEMENTATION  OF
 THIS ARTICLE;
   (B) THE EFFECTIVENESS OF THE FEE ESTABLISHED UNDER SECTION THREE THOU-
 SAND FORTY OF THIS ARTICLE TO REDUCE GREENHOUSE GAS EMISSIONS STATEWIDE,
 INCLUDING  AN  ANALYSIS  OF REDUCTIONS BY GEOGRAPHIC SUBDIVISIONS OF THE
 STATE;

 S. 7645                            37
 
   (C) THE AMOUNT OF ESTIMATED EMISSIONS LEAKAGE THAT MAY BE OCCURRING IN
 CORRELATION WITH THE IMPLEMENTATION OF THE FEE ESTABLISHED UNDER SECTION
 THREE THOUSAND FORTY OF THIS ARTICLE, THE EFFECTIVENESS OF ANY  POLICIES
 THAT HAVE BEEN IMPLEMENTED TO ADDRESS EMISSIONS LEAKAGE, AND RECOMMENDA-
 TIONS FOR IMPROVING POLICIES TO MITIGATE EMISSIONS LEAKAGE;
   (D)  AN  OVERVIEW  OF SOCIAL BENEFITS FROM THE FEES AND OTHER POLICIES
 ESTABLISHED PURSUANT TO THIS ARTICLE, INCLUDING BENEFITS TO THE ECONOMY,
 ENVIRONMENT, AND PUBLIC HEALTH, INCLUDING WOMEN'S HEALTH;
   (E) AN OVERVIEW OF THE DISTRIBUTION OF COSTS AND BENEFITS OF THE POLI-
 CIES PROMULGATED UNDER THIS ARTICLE, ACROSS  DIFFERENT  COMMUNITIES  AND
 SECTORS OF THE STATE ECONOMY;
   (F) AN OVERVIEW OF COMPLIANCE COSTS FOR REGULATED ENTITIES;
   (G)  AN  OVERVIEW OF ADMINISTRATIVE COSTS FOR THE DEPARTMENT AND OTHER
 STATE AGENCIES; AND
   (H) RECOMMENDATIONS FOR FUTURE REGULATORY AND POLICY ACTION,  AND,  IN
 GENERAL, PERTAINING TO MEASURES FOR REDUCING GREENHOUSE EMISSIONS IN THE
 STATE.
   2.  BEFORE  FINALIZING THE REPORT DESCRIBED IN SUBDIVISION ONE OF THIS
 SECTION, THE COMMISSIONER SHALL ENSURE THAT THERE ARE MEANINGFUL  OPPOR-
 TUNITIES FOR PUBLIC PARTICIPATION, INCLUDING BY:
   (A)  ALLOWING  AT  LEAST ONE HUNDRED TWENTY DAYS FOR THE SUBMISSION OF
 PUBLIC COMMENT, FOLLOWING THE DATE OF THE PUBLICATION OF A DRAFT REPORT;
 AND
   (B) HOLDING AT LEAST FOUR  REGIONAL  PUBLIC  HEARINGS,  INCLUDING  TWO
 MEETINGS IN THE UPSTATE REGION AND TWO MEETINGS IN THE DOWNSTATE REGION,
 WITH  EMPHASIS ON MAXIMIZING PARTICIPATION AND ACCESSIBILITY FOR MEMBERS
 OF DISADVANTAGED COMMUNITIES.
   3. THE FINAL REPORT SHALL BE SUBMITTED TO THE GOVERNOR, THE  TEMPORARY
 PRESIDENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY, THE MINORITY LEAD-
 ER  OF  THE SENATE AND THE MINORITY LEADER OF THE ASSEMBLY, AND SHALL BE
 POSTED ON THE WEBSITE OF THE DEPARTMENT.
                                ARTICLE 43
                LOW-INCOME AND SMALL BUSINESS ENERGY REBATE
 SECTION 3050. DEFINITIONS.
         3051. ESTABLISHMENT OF THE LOW-INCOME AND SMALL BUSINESS  ENERGY
                 REBATE PROGRAM.
         3052. ADMINISTRATION BY THE DEPARTMENT.
         3053. ALLOCATION OF FUNDS.
         3054. QUALIFYING HOUSEHOLDS.
         3055. REBATE AMOUNT AND REPORT.
         3056. DELIVERY OF FUNDS.
         3057. REASSESSMENT OF ALLOCATIONS.
         3058. SMALL BUSINESS TAX CREDIT.
   §  3050.  DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE, THE FOLLOWING
 TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   1. ""AUTHORITY" SHALL HAVE THE SAME MEANING AS IN SUBDIVISION  TWO  OF
 SECTION EIGHTEEN HUNDRED FIFTY-ONE OF THE PUBLIC AUTHORITIES LAW.
   2. "COMMISSIONER" MEANS THE COMMISSIONER OF TAXATION AND FINANCE.
   3. "DEPARTMENT" MEANS THE DEPARTMENT OF TAXATION AND FINANCE.
   4.  "ELIGIBLE  LOW-INCOME  HOUSEHOLD"  MEANS,  WITH RESPECT TO A GIVEN
 CALENDAR YEAR, ANY HOUSEHOLD WHOSE GROSS  INCOME  DOES  NOT  EXCEED  ONE
 HUNDRED FIFTY PERCENT OF THE POVERTY LINE.
   5.  "ELIGIBLE MODERATE-INCOME HOUSEHOLD MEANS, WITH RESPECT TO A GIVEN
 CALENDAR YEAR, ANY HOUSEHOLD WHOSE  GROSS  INCOME  EXCEEDS  ONE  HUNDRED
 FIFTY PERCENT OF THE POVERTY LINE, BUT DOES NOT EXCEED THE MEDIAN HOUSE-
 HOLD INCOME FOR THE COUNTY IN WHICH THEY RESIDE.

 S. 7645                            38
 
   6.  "ELIGIBLE  SMALL  BUSINESS" MEANS A BUSINESS, COOPERATIVE, OR NOT-
 FOR-PROFIT CORPORATION WHICH IS RESIDENT  IN  THIS  STATE,  AND  EMPLOYS
 FIFTY  OR  LESS  PERSONS  (INCLUDING  A  SOLO  PROPRIETORSHIP), AND WITH
 RESPECT TO BUSINESSES, IS INDEPENDENTLY OWNED AND OPERATED AND NOT DOMI-
 NANT IN ITS FIELD.
   7.  "FUND"  OR  "REBATE  FUND" MEANS THE LOW-INCOME AND SMALL BUSINESS
 ENERGY REBATE FUND ESTABLISHED UNDER SUBDIVISION THREE OF SECTION  THREE
 THOUSAND FORTY-SIX OF THIS CHAPTER.
   8.  "POVERTY LINE" SHALL HAVE THE SAME MEANING AS IN SECTION 673(2) OF
 THE FEDERAL COMMUNITY SERVICES BLOCK GRANT ACT (46 USC SECTION 9902).
   9. "PROGRAM" MEANS THE LOW-INCOME AND  SMALL  BUSINESS  ENERGY  REBATE
 PROGRAM ESTABLISHED UNDER THIS ARTICLE.
   10.  "WORKING  GROUP"  MEANS THE CLIMATE JUSTICE WORKING GROUP CREATED
 PURSUANT TO SECTION 74-0103 OF THE ENVIRONMENTAL CONSERVATION LAW.
   § 3051. ESTABLISHMENT OF THE  LOW-INCOME  AND  SMALL  BUSINESS  ENERGY
 REBATE  PROGRAM.  THERE IS HEREBY ESTABLISHED WITHIN THE DEPARTMENT, THE
 "LOW-INCOME AND SMALL BUSINESS ENERGY REBATE PROGRAM". THE  PURPOSES  OF
 THE PROGRAM INCLUDE:
   1. DISBURSEMENT OF FUNDS FROM THE "LOW-INCOME AND SMALL BUSINESS ENER-
 GY  REBATE  FUND; FOR THE BENEFIT OF THE MOST VULNERABLE POPULATIONS, TO
 OFFSET THE INCREASED COST OF LIVING ASSOCIATED WITH  THE  IMPLEMENTATION
 OF  THE  FEE  AND  OTHER  REGULATORY MEASURES ESTABLISHED AS PART OF THE
 STATE'S CLIMATE MITIGATION EFFORTS; AND
   2. REDUCING THE ALREADY SEVERE ENERGY BURDEN ON LOW- AND  MODERATE-IN-
 COME FAMILIES.
   §  3052.  ADMINISTRATION  BY  THE DEPARTMENT. WITHIN SIX MONTHS OF THE
 EFFECTIVE DATE OF THIS ARTICLE, THE DEPARTMENT IS HEREBY AUTHORIZED  AND
 DIRECTED  TO  ESTABLISH  AND OPERATE THE PROGRAM. THE COMMISSIONER SHALL
 IMPLEMENT THE PROGRAM IN CONSULTATION WITH THE AUTHORITY, THE OFFICE  OF
 TEMPORARY  AND  DISABILITY ASSISTANCE, AND THE DEPARTMENTS OF HEALTH AND
 LABOR. THE COMMISSIONER SHALL BE AUTHORIZED AND DIRECTED TO: USE  MONIES
 MADE  AVAILABLE  FOR  THE  PROGRAM PURSUANT TO ARTICLE FORTY-TWO OF THIS
 CHAPTER TO ACHIEVE THE PURPOSES OF THE PROGRAM; AND EXERCISE SUCH  OTHER
 POWERS  AS  ARE NECESSARY FOR THE PROPER ADMINISTRATION OF SUCH PROGRAM,
 INCLUDING ISSUING RULES AND REGULATIONS CONSISTENT WITH THIS ARTICLE.
   § 3053. ALLOCATION OF FUNDS. FUNDS FROM THE LOW-INCOME AND SMALL BUSI-
 NESS ENERGY REBATE FUND SHALL BE DISBURSED UNDER THE PROGRAM TO ELIGIBLE
 HOUSEHOLDS AND SMALL BUSINESSES. THE DEPARTMENT SHALL COLLECT  AND  THEN
 DISTRIBUTE  DIRECTLY  TO  ELIGIBLE HOUSEHOLDS THE ENTIRE AMOUNT OF FUNDS
 DEDICATED TO THE REBATE FUND. ELIGIBLE HOUSEHOLDS SHALL BE NOTIFIED THAT
 THEY ARE AUTOMATICALLY BEING ENROLLED BASED ON THEIR TAX FILING  STATUS.
 THE DEPARTMENT WILL MAKE DETERMINATIONS AS TO WHICH HOUSEHOLDS AND SMALL
 BUSINESSES  ARE ELIGIBLE FOR THE REBATE AND ESTABLISH AN APPEALS PROCESS
 WITHIN THE DEPARTMENT AS TO SUCH DETERMINATIONS.  THE  DEPARTMENT  SHALL
 ALSO  ESTABLISH AN OPPORTUNITY FOR INDIVIDUAL RESIDENTS OF THE STATE WHO
 ARE NOT REQUIRED TO FILE INCOME TAXES TO APPLY FOR  REBATES  UNDER  THIS
 ARTICLE.
   §  3054. QUALIFYING HOUSEHOLDS. A REBATE WILL BE AVAILABLE TO ELIGIBLE
 LOW-INCOME HOUSEHOLDS, MODERATE INCOME HOUSEHOLDS, AND ADDITIONAL HOUSE-
 HOLDS, PROVIDED THAT REBATES SHALL ONLY BE PROVIDED TO  SUCH  ADDITIONAL
 HOUSEHOLDS  UPON  A  DETERMINATION  BY  THE  COMMISSIONER THAT THERE ARE
 ADEQUATE FUNDS. NOTWITHSTANDING THE PRECEDING SENTENCE, THE REBATE SHALL
 BE AVAILABLE TO A MAXIMUM OF SIXTY PERCENT OF THE HOUSEHOLDS IN NEW YORK
 STATE. THE DEPARTMENT WILL COOPERATE WITH THE OFFICE  OF  TEMPORARY  AND
 DISABILITY  ASSISTANCE  TO  IDENTIFY  HOUSEHOLDS  AND  PLACE THEM IN THE
 FOLLOWING FOUR HOUSEHOLD CATEGORIES:

 S. 7645                            39
 
   1. ELIGIBLE MODERATE-INCOME HOUSEHOLDS CONTAINING NEW YORK CITY  RESI-
 DENTS;
   2.  ELIGIBLE  LOW-INCOME HOUSEHOLDS CONTAINING NEW YORK CITY RESIDENTS
 IN WHICH THE HOUSEHOLD INCOME IS BELOW ONE HUNDRED FIFTY PERCENT OF  THE
 POVERTY LINE OR WHO ARE RECEIVING ANY MEANS-TESTED GOVERNMENT ASSISTANCE
 AIMED AT LOW-INCOME INDIVIDUALS OR HOUSEHOLDS;
   3. ELIGIBLE MODERATE-INCOME HOUSEHOLDS CONTAINING RESIDENTS OUTSIDE OF
 NEW YORK CITY; AND
   4.  ELIGIBLE LOW-INCOME HOUSEHOLDS CONTAINING RESIDENTS OUTSIDE OF NEW
 YORK CITY WITH A HOUSEHOLD INCOME BELOW ONE HUNDRED FIFTY PERCENT OF THE
 POVERTY  LINE  OR  RECEIVING  ANY  MEANS-TESTED  GOVERNMENT   ASSISTANCE
 PROGRAMS AIMED AT LOW-INCOME INDIVIDUALS OR HOUSEHOLDS.
   §  3055.  REBATE AMOUNT AND REPORT. 1. THE DEPARTMENT, IN CONSULTATION
 WITH THE WORKING GROUP, SHALL DETERMINE THE APPROPRIATE  AMOUNT  OF  THE
 REBATE,  CONSISTENT  WITH THE STANDARDS SET FORTH IN THIS SECTION.  EACH
 ELIGIBLE HOUSEHOLD WILL RECEIVE A SHARE OF THE  TOTAL  ALLOCATED  REBATE
 FUNDS SO THAT:
   (A)  ALL  ELIGIBLE  HOUSEHOLDS IN NEW YORK CITY SHALL RECEIVE THE SAME
 AMOUNT,
   (B) ALL ELIGIBLE HOUSEHOLDS OUTSIDE OF NEW YORK CITY SHALL RECEIVE THE
 SAME AMOUNT AND THAT AMOUNT SHALL BE AT LEAST FIFTY  PERCENT  MORE  THAN
 THE REBATE AMOUNT APPLICABLE TO NEW YORK CITY HOUSEHOLDS, AND
   (C)  THE  TOTAL AMOUNT PROVIDED FOR REBATES MUST NOT EXCEED THE ANNUAL
 REVENUE IN THE REBATE FUND.
   2. THE DEPARTMENT SHALL ANNUALLY ASSESS AND REPORT TO THE  LEGISLATURE
 AND  THE  GOVERNOR  AT  LEAST  THE  FOLLOWING INFORMATION: THE NUMBER OF
 HOUSEHOLDS IN EACH REBATE CATEGORY IN SECTION THREE THOUSAND  FIFTY-FOUR
 OF THIS ARTICLE; THE NUMBER OF HOUSEHOLDS WHO SELECT EACH DELIVERY MECH-
 ANISM SET FORTH IN SECTION THREE THOUSAND FIFTY-SIX OF THIS ARTICLE; AND
 HOW THE NUMBER OF HOUSEHOLDS COMPARE TO:
   (A) THE INCREMENTAL INCREASE IN THE COST OF LIVING ASSOCIATED WITH THE
 IMPLEMENTATION  OF  THE FEE ESTABLISHED PURSUANT TO ARTICLE FORTY-TWO OF
 THIS CHAPTER AND OTHER REGULATORY  MEASURES  ESTABLISHED  UNDER  ARTICLE
 FORTY-TWO OF THIS CHAPTER;
   (B)  OTHER  ESTIMATED  INCREASES IN THE COST OF LIVING ASSOCIATED WITH
 THE TRANSITION TO A LOW-CARBON ECONOMY; AND
   (C) EXISTING ENERGY BURDENS.
   § 3056. DELIVERY OF FUNDS. 1. THE DEPARTMENT, IN PARTNERSHIP WITH  THE
 WORKING  GROUP, THE AUTHORITY AND THE OFFICE OF TEMPORARY AND DISABILITY
 ASSISTANCE SHALL DETERMINE APPROPRIATE MECHANISMS FOR DELIVERING REBATES
 UNDER THIS ARTICLE. THAT MECHANISM SHALL ENSURE THAT:
   (A) ELIGIBLE MODERATE-INCOME HOUSEHOLDS IN THE FIRST AND THIRD  HOUSE-
 HOLD  CATEGORIES  SET FORTH IN SECTION THREE THOUSAND FIFTY-FOUR OF THIS
 ARTICLE SHALL RECEIVE A REDEEMABLE TAX CREDIT, THROUGH A  SINGLE  ANNUAL
 PAYMENT.
   (B)  ELIGIBLE LOW-INCOME HOUSEHOLDS IN THE SECOND AND FOURTH HOUSEHOLD
 CATEGORIES SET FORTH IN SECTION THREE THOUSAND FIFTY-FOUR OF THIS  ARTI-
 CLE  SHALL RECEIVE THEIR REBATE THROUGH MECHANISMS THAT WILL NOT CONSTI-
 TUTE INCOME FOR  PURPOSES  OF  ANY  MEANS-TESTED  GOVERNMENT  ASSISTANCE
 PROGRAMS  THAT  THEY  MAY  BE  RECEIVING.  UNLESS AN ELIGIBLE LOW-INCOME
 HOUSEHOLD OPTS OUT OF SUCH BENEFIT UNDER THIS SECTION, THE BENEFIT SHALL
 BE:
   (I) A TRANSIT VOUCHER FOR USE RECEIVING SERVICES THROUGH THE METROPOL-
 ITAN TRANSPORTATION AUTHORITY, ACCESS-A-RIDE, OR  OTHER  PUBLIC  TRANSIT
 SERVICE  FOR  HOUSEHOLDS  IN THE SECOND HOUSEHOLD CATEGORY UNDER SECTION
 THREE THOUSAND FIFTY-FOUR OF THIS ARTICLE.

 S. 7645                            40
 
   (II) UTILITY ASSISTANCE OR  A  WEATHERIZATION  GRANT  FOR  THE  FOURTH
 HOUSEHOLD CATEGORY UNDER SECTION THREE THOUSAND FIFTY-FOUR OF THIS ARTI-
 CLE.
   2.    ALL  QUALIFYING HOUSEHOLDS MAY OPT OUT OF THE DEFAULT OPTION FOR
 DELIVERY OF THE REBATE, AND CAN CHOOSE TO RECEIVE THEIR  BENEFIT  AMOUNT
 IN  THE  FORM  OF ONE OF THE FOLLOWING FOUR OPTIONS: (A) UTILITY ASSIST-
 ANCE; (B) A WEATHERIZATION GRANT; (C) A VOUCHER FOR USE WITH THEIR LOCAL
 TRANSIT AUTHORITY; OR (D) A REDEEMABLE TAX CREDIT.
   § 3057. REASSESSMENT OF ALLOCATIONS.  1.  BEGINNING  IN  TWO  THOUSAND
 TWENTY  AND EVERY FIVE YEARS THEREAFTER, THE DEPARTMENT, IN COORDINATION
 WITH THE AUTHORITY, THE OFFICE OF TEMPORARY AND  DISABILITY  ASSISTANCE,
 THE  PUBLIC  SERVICE  COMMISSION,  AND  THE  DEPARTMENT OF ENVIRONMENTAL
 CONSERVATION SHALL PERFORM AN ASSESSMENT,  WHICH  SHALL  INCLUDE,  AT  A
 MINIMUM, THE FOLLOWING INFORMATION: (A) THE STATE-WIDE ENERGY BURDEN FOR
 SMALL  BUSINESSES,  AND  HOUSEHOLDS BY GEOGRAPHY AND INCOME; (B) WHETHER
 SUCH ENERGY BURDEN HAS STAYED LEVEL OR  DECREASED  SINCE  THE  EFFECTIVE
 DATE  OF THIS SECTION; (C) THE UPTAKE OF ENERGY EFFICIENCY AND RENEWABLE
 ENERGY IN EACH INCOME CATEGORY; AND (D) AN ESTIMATED  IMPACT  ON  ENERGY
 BURDEN  OR  ANOTHER  EQUIVALENT  ESTIMATE OF THE PROPORTION OF HOUSEHOLD
 INCOME SPENT ON ENERGY. BASED ON SUCH  INFORMATION  AND  ANY  ADDITIONAL
 INFORMATION  THAT  THE DEPARTMENT DETERMINES IS APPROPRIATE, THE DEPART-
 MENT SHALL DETERMINE WHETHER THE PRESENT REBATE AMOUNT IS APPROPRIATE OR
 WHETHER IT IS APPROPRIATE TO REDUCE THE REBATE BENEFIT AMOUNT.
   2. FOLLOWING ANY ASSESSMENT UNDER  SUBDIVISION  ONE  OF  THIS  SECTION
 WHERE  THE IMPACT OF THE FEE ESTABLISHED IS FOUND NOT TO INCREASE HOUSE-
 HOLD SPENDING, OR WHERE THE ENERGY BURDEN HAS FALLEN, THE  REBATE  SHALL
 BE  REDUCED  BY  AT LEAST TEN PERCENT AND THE FUNDS REALLOCATED IN EQUAL
 AMOUNTS TO THE COMMUNITY JUST TRANSITION FUND  ESTABLISHED  PURSUANT  TO
 SUBDIVISION  ONE OF SECTION THREE THOUSAND FORTY-SIX OF THIS CHAPTER AND
 THE CLIMATE JOBS AND INFRASTRUCTURE FUND ESTABLISHED PURSUANT TO  SUBDI-
 VISION TWO OF SUCH SECTION.
   §  3058. SMALL BUSINESS TAX CREDIT. 1. ELIGIBLE SMALL BUSINESSES SHALL
 RECEIVE A REDEEMABLE TAX CREDIT TO REDUCE ANY  INCREMENTAL  INCREASE  IN
 THE COST OF DOING BUSINESS ASSOCIATED WITH THE IMPLEMENTATION OF THE FEE
 ESTABLISHED  PURSUANT  TO  ARTICLE  FORTY-TWO  OF THIS CHAPTER AND OTHER
 REGULATORY MEASURES ESTABLISHED UNDER THE CLIMATE AND COMMUNITY  INVEST-
 MENT ACT OR THE TRANSITION TO A LOW-CARBON ECONOMY IN NEW YORK STATE.
   2. ANY ELIGIBLE SMALL BUSINESS THAT INCURS ENERGY OR FUEL COSTS IN THE
 COURSE  OF  ITS  BUSINESS,  SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS
 PROVIDED IN SUBDIVISION THREE OF THIS SECTION, AGAINST  BUSINESS  INCOME
 FOR  EACH YEAR THAT THE FEE ESTABLISHED PURSUANT TO ARTICLE FORTY-TWO OF
 THIS CHAPTER IS COLLECTED.
   3. THE CREDIT AUTHORIZED BY THIS SECTION SHALL  EQUAL  THE  HIGHER  OF
 FIVE  HUNDRED  DOLLARS  A  YEAR,  OR THE AMOUNT COMPUTED FOR A HOUSEHOLD
 REBATE.
   4. THE CREDIT CREATED UNDER THIS SECTION MAY BE  CLAIMED  EVEN  IF  NO
 TAXES  ARE  OWED BY THE ELIGIBLE SMALL BUSINESS. SUCH CREDIT MAY BE USED
 TO REDUCE THE TAX LIABILITY OF THE CREDIT CLAIMANT BELOW ZERO.
   § 9. Severability.  If any word, phrase, clause, sentence,  paragraph,
 section, or part of this act shall be adjudged by any court of competent
 jurisdiction  to be invalid, such judgement shall not affect, impair, or
 invalidate the remainder thereof, but shall be confined in its operation
 to the word, phrase, clause, sentence, paragraph, section, or part ther-
 eof directly involved in the controversy in which such  judgement  shall
 have been rendered.

 S. 7645                            41
 
   §  10.  This  act  shall  take effect on the one hundred eightieth day
 after it shall have become a law and shall apply to any  grants,  loans,
 contracts  and  financial assistance awarded or renewed on or after such
 effective date, provided, however that effective immediately, the  addi-
 tion,  amendment  and/or  repeal of any rule or regulation necessary for
 the implementation of this act on its effective date are  authorized  to
 be made and completed on or before such date.