S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3616
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             February 11, 2019
                                ___________
 
 Introduced  by  Sens. PARKER, SANDERS -- 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,
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD09816-01-9

 S. 3616                             2
 
 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
 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.

 S. 3616                             3
 
   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
 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

 S. 3616                             4
 
 emissions of carbon dioxide by newly constructed major generating facil-
 ities;
   (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.

 S. 3616                             5
 
   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
 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

 S. 3616                             6
 
 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-
 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:

 S. 3616                             7
 
   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;
   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:

 S. 3616                             8
 
   (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;
   (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.

 S. 3616                             9
 
   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.
   §  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

 S. 3616                            10
 
 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.
   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:

 S. 3616                            11
 
   (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;
   (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,

 S. 3616                            12
 
 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
 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.

 S. 3616                            13
 
         863-D. ALLOCATION OF FUNDS.
         863-E. SELECTION PROCESS.
         863-F. DESIGNATION OF SIGNIFICANT IMPACT.
         863-G. REPORTING.
   §  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.

 S. 3616                            14
 
   § 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:
   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.

 S. 3616                            15
 
   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
 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

 S. 3616                            16
 
 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;
   (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.

 S. 3616                            17
 
   §  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
                                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.

 S. 3616                            18
 
   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.
   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:

 S. 3616                            19
 
   (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-
 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,

 S. 3616                            20
 
 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
 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.

 S. 3616                            21
 
   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.
 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 NINETEEN 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 SECTIONS
 NINETEEN HUNDRED NINE AND NINETEEN 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.

 S. 3616                            22
 
   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
 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-

 S. 3616                            23
 
 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.
   (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.

 S. 3616                            24
 
   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
 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

 S. 3616                            25
 
   (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
 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:

 S. 3616                            26
 
   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
 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

 S. 3616                            27
 
 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
 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

 S. 3616                            28

 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.
   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.

 S. 3616                            29
 
         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
 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

 S. 3616                            30

 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.
   § 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 NINETEEN, THIRTY-FIVE DOLLARS;
   (B) FOR ANY CARBON-BASED FUEL SOLD, USED, OR ENTERED  INTO  THE  STATE
 DURING  ANY  CALENDAR  YEAR  AFTER  TWO THOUSAND NINETEEN AND BEFORE TWO
 THOUSAND TWENTY-THREE, 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-TWO  AND  BEFORE  TWO
 THOUSAND THIRTY-THREE, 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

 S. 3616                            31
 
   (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-TWO  AND  BEFORE  TWO
 THOUSAND FIFTY-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, 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-ONE, AN AMOUNT EQUAL
 TO THE SUM OF:

 S. 3616                            32
 
   (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-TWO, AND EVERY FIVE  YEARS  THEREAFTER,  THE
 COMMISSIONER SHALL, IN CONSULTATION WITH THE DEPARTMENT OF ENVIRONMENTAL
 CONSERVATION:
   (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 EIGHTEEN, 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 EIGHTEEN, 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 EIGHTEEN, 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-ONE, EIGHTY-FIVE PERCENT OF EMIS-
 SIONS;
   (B) FOR EACH YEAR AFTER TWO THOUSAND TWENTY-ONE AND BEFORE  TWO  THOU-
 SAND TWENTY-SEVEN, FOUR PERCENT LESS THAN THE PREVIOUS YEAR; AND
   (C)  FOR  EACH YEAR AFTER TWO THOUSAND TWENTY-SIX AND BEFORE TWO THOU-
 SAND FORTY-TWO, THREE PERCENT LESS THAN THE PREVIOUS YEAR; AND
   (D) FOR EACH YEAR AFTER TWO THOUSAND FORTY-ONE, 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:

 S. 3616                            33
 
   (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
   (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.

 S. 3616                            34
 
   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.
   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.

 S. 3616                            35
 
   § 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
 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.

 S. 3616                            36
 
   (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.
   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.

 S. 3616                            37
 
   §  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;
   (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:

 S. 3616                            38
 
   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.
   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

 S. 3616                            39
 
 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:
   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.

 S. 3616                            40
 
   (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.
   (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-ONE  AND  EVERY FIVE YEARS THEREAFTER, THE DEPARTMENT, IN COORDI-
 NATION WITH THE  AUTHORITY,  THE  OFFICE  OF  TEMPORARY  AND  DISABILITY
 ASSISTANCE,  THE  PUBLIC SERVICE COMMISSION, AND THE DEPARTMENT OF ENVI-
 RONMENTAL 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 HOUSE-
 HOLD  INCOME  SPENT  ON  ENERGY. BASED ON SUCH INFORMATION AND ANY ADDI-
 TIONAL INFORMATION THAT THE DEPARTMENT DETERMINES  IS  APPROPRIATE,  THE
 DEPARTMENT  SHALL  DETERMINE WHETHER THE PRESENT REBATE AMOUNT IS APPRO-
 PRIATE 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.

 S. 3616                            41

   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.
   § 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.  Effective  immediately, the addition, 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.