S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4192
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               March 4, 2019
                                ___________
 
 Introduced  by  Sen. RITCHIE -- read twice and ordered printed, and when
   printed to be committed to the Committee on Environmental Conservation
 
 AN ACT in relation to enacting the  "biomass  fired  exception  program"
   addressing  the applicability of a CO2 budget trading program to biom-
   ass-fired electric generating  facilities  that  have  converted  from
   coal-fired generation
 
   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 "biomass fired exception program".
   §  2.  Legislative  intent.  The legislature hereby finds and declares
 that it is in the economic and environmental interests of  the  citizens
 of  the  state  of  New  York  to support and encourage renewable energy
 generation through the  conversion  of  coal-fired  electric  generating
 facilities to biomass-fired facilities. The combustion of biomass offers
 a  sustainable  and  manageable  carbon  lifecycle  since  the materials
 included in biomass generally absorb  atmospheric  carbon  during  their
 lifecycle  and then return it to the atmosphere during combustion.  This
 process mimics the natural lifecycle of plant life that can fall to  the
 forest floor, decompose and return its carbon to the atmosphere.
   The  legislature  further  finds  and declares that biomass production
 facilities support and sustain jobs, particularly in upstate  New  York,
 where more than four thousand people are employed directly or indirectly
 by  the industry. In fact, many of the largest and most successful biom-
 ass facilities are located in parts of New York  state  that  have  high
 unemployment and are in desperate need of economic development. New York
 state  also  possesses  an  abundance  of  biomass fuel due to the large
 amount of untapped forest and agricultural land where biomass  fuel  can
 be collected. Biomass is the equivalent of solar energy stored in organ-
 ic matter and is environmentally friendly while costing around one third
 of the cost of fossil fuels.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD10415-01-9

 S. 4192                             2
 
   As  such,  to the extent that operators of electric generating facili-
 ties in New York state are willing to convert formerly coal-fired facil-
 ities (boilers, combustion  turbines,  or  combined  cycle  systems)  to
 instead  be fueled by biomass, state policy should encourage and support
 such  conversions  rather  than discourage them. While new biomass-fired
 electric generating facilities are not required to  acquire  CO2  allow-
 ances  under  the  regulations  implementing the Regional Greenhouse Gas
 Initiative (RGGI) in New York state, former coal-fired  facilities  that
 convert  to  combusting biomass are still subject to RGGI's requirements
 under existing regulations, which effectively discourages  such  conver-
 sions.  To remedy this situation, and consistent with the intent of RGGI
 to encourage more renewable energy generation, the legislature  declares
 that  formerly coal-fired electric generating facilities that convert to
 primarily biomass-fired facilities shall be treated in the  same  manner
 as a new biomass facility under the RGGI regulations.
   §  3.  Definitions. For the purposes of this act "boiler", "combustion
 turbine", "combined cycle system", "eligible biomass" and "fossil  fuel"
 shall have the same meanings as defined in 6 NYCRR Part 242-1.2.
   §  4.  The commissioner of environmental conservation shall promulgate
 rules and regulations necessary to regard formerly  coal-fired  electric
 generating facilities that convert to primarily biomass-fired facilities
 in  the  same manner as a new biomass facility under the regional green-
 house gas initiative regulations.  Such rules and regulations shall also
 provide that an electric  generating  facility,  including  any  boiler,
 combustion  turbine  or  combination cycle steam turbine, that meets the
 following conditions shall not be defined as fossil fuel-fired under the
 CO2 budget trading program (6 NYCRR Part 242):
   (a) was formerly fossil fuel-fired due to  the  use  of  coal  as  its
 primary fuel,
   (b)  is  no  longer  authorized  to combust coal under its air title V
 facility permit issued by the department pursuant  to  6  NYCRR  subpart
 201-6,
   (c)  uses  eligible biomass comprising not less than 75 percent of its
 annual fuel purchases, as measured by weight,
   (d) uses fossil fuel for less than 5 percent of its annual heat input,
 and
   (e) is located within a military installation.
   § 5. This act shall take effect on the ninetieth day  after  it  shall
 have become a law and shall apply to all control periods commencing with
 the  control  period  that ended on December 31, 2018; provided however,
 that effective immediately the department of environmental  conservation
 is  authorized  and  directed  to  amend, revise and/or repeal any rule,
 regulation or policy necessary for the implementation of this act on  or
 before such effective date.