S T A T E   O F   N E W   Y O R K
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                                  1364

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by M. of A. COLTON, CASTRO -- Multi-Sponsored by -- M. of A.
  COOK, MAISEL, PERRY, THIELE, WEISENBERG -- read once and  referred  to
  the Committee on Environmental Conservation

AN  ACT  to  amend  the  environmental  conservation law, in relation to
  establishing certain requirements for environmental safety permits for
  liquefied natural gas facilities

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Section 23-1711 of the environmental conservation law, as
amended by chapter 233 of the laws  of  1979,  is  amended  to  read  as
follows:
S 23-1711. [Permit   processing]   ENVIRONMENTAL   SAFETY   PERMIT   FOR
             CONSTRUCTION OR IMPROVEMENT OF LIQUEFIED NATURAL OR  PETRO-
             LEUM GAS FACILITY.
  1.  Any person desiring to construct, reconstruct, enlarge the storage
capacity or, if constructed but unused, put into actual use  and  opera-
tion  a liquefied natural or petroleum gas facility, TERMINAL OR RELATED
PIPELINE in the state shall obtain [a] AN  ENVIRONMENTAL  SAFETY  permit
pursuant to this section.
  2.    THE  DEPARTMENT  SHALL  HOLD  A PUBLIC HEARING IN THE DESIGNATED
REGION WHERE A LIQUEFIED NATURAL  OR  PETROLEUM  FACILITY,  TERMINAL  OR
RELATED PIPELINE SHALL BE CONSTRUCTED. Notice of [any] SUCH public hear-
ing  conducted in connection with [any] SUCH environmental safety permit
shall be published in at least two newspapers having  a  general  circu-
lation  in  the  area  in which the proposed activity is located, and in
contiguous areas potentially affected by the proposed action.
  3. The department shall INFORM THE NEW YORK RESEARCH  AND  DEVELOPMENT
AUTHORITY,  COUNTY  EXECUTIVES  AND  MUNICIPAL  OR LOCAL LEADERS THAT AN
APPLICATION EXISTS FOR SUCH PERMIT.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04060-01-3
              

A. 1364                             2

  4. THE DEPARTMENT SHALL render a decision based upon the record either
granting the permit, denying it, or granting it upon such terms,  condi-
tions,  limitations, or modifications thereof as the department may deem
appropriate.
  A.  THE  DEPARTMENT  SHALL  APPROVE  THE APPLICATION FOR THE PERMIT OR
AUTHORIZATION ONLY IF, IN CONSULTATION WITH THE NEW  YORK  RESEARCH  AND
DEVELOPMENT AUTHORITY, IT ISSUES A WRITTEN FINDING THAT:
  (I)  A  SIGNIFICANT  NEED EXISTS WITHIN NEW YORK STATE FOR NATURAL GAS
THAT THE LIQUEFIED NATURAL GAS TERMINAL SHALL MEET;
  (II) SOURCES OF NATURAL GAS IN NORTH AMERICA ARE INSUFFICIENT TO  MEET
THE SIGNIFICANT NEED SPECIFIED IN SUBPARAGRAPH (I) OF THIS PARAGRAPH;
  (III)  THE  PRICE  OF  NATURAL  GAS DERIVED FROM LIQUEFIED NATURAL GAS
SUPPLIED BY THE TERMINAL FACILITY SHALL NOT EXCEED THE PRICE OF  NATURAL
GAS AVAILABLE FROM OTHER SOURCES OF NATURAL GAS IN NORTH AMERICA; AND
  (IV) THE OPERATION OF THE LIQUEFIED NATURAL GAS TERMINAL IS CONSISTENT
WITH NEW YORK STATE STRATEGIES FOR ADDRESSING CLIMATE CHANGE.
  B. The department shall deny a permit if residential areas and contig-
uous  populations,  will be endangered, or it otherwise does not conform
to the siting criteria established for liquefied  natural  or  petroleum
gas  facilities, or the department finds that the facility is not neces-
sary, or is otherwise not in the public interest to be approved.
  S 2. Section 23-1709 of the environmental conservation law, as amended
by chapter 233 of the laws of 1979, is amended to read as follows:
S 23-1709. Criteria for siting.
  1. The department  shall,  after  investigation  and  opportunity  for
public comment, within one year from the effective date of this section,
adopt,  and  file  with the secretary of state, regulations establishing
criteria for the siting of liquefied natural and petroleum  gas  facili-
ties. Such siting criteria shall be designed to insure the maximum safe-
ty  of  the  public  from  hazards  associated with liquefied natural or
petroleum gas storage, transportation  and  conversion.  The  department
shall  also  within  one year from such effective date adopt regulations
prescribing the form and content of applications for environmental safe-
ty permits to construct a liquefied natural or petroleum gas facility.
  2. The regulations issued pursuant to subdivision one of this  section
for  the  siting  of liquefied natural or petroleum gas facilities shall
take into account, among other factors:
  (a) The density of  population  in  areas  neighboring  the  liquefied
natural or petroleum gas facility;
  (b)  The density of population in areas neighboring delivery routes of
liquefied natural or petroleum gas to a liquefied natural  or  petroleum
gas  facility, if delivery is by water-borne vessel, rail or motor vehi-
cle;
  (c) The risk  of  accident  during  the  transportation  of  liquefied
natural or petroleum gas to or from a liquefied natural or petroleum gas
facility  which could result in a release of liquefied natural or petro-
leum gas from containment and the safeguards necessary  to  reduce  such
risk;
  (d)  The  physical  properties  of liquefied natural or petroleum gas,
including: (i) the effect of cryogenic temperatures upon  containers  of
liquefied  natural  or  petroleum  gas; (ii) the maximum distance that a
liquefied natural or petroleum gas vapor cloud is  projected  to  expand
and  pose  a threat to the public; and, (iii) the flammability or explo-
siveness of such a cloud  formed  by  vaporizing  liquefied  natural  or
petroleum gas.

A. 1364                             3

  3.  The  regulations  issued by the department pursuant to subdivision
one OF THIS SECTION prescribing the form of an application for an  envi-
ronmental  safety  permit  to construct a liquefied natural or petroleum
gas facility shall require the applicant to supply detailed  information
regarding:
  (a) The location of the proposed facility;
  (b) A description of the design and capacity of the facility;
  (c) The expected sources of natural gas or liquefied natural or petro-
leum  gas for the facility, the proposed methods of transporting natural
gas or liquefied natural or petroleum gas to and from the facility,  and
the routes which deliveries will traverse;
  (d) The need for the facility;
  (e) The environmental impacts of the proposed facility;
  (f) A description of reasonable alternative locations for the proposed
facility;
  (g)  Such other information as the department shall prescribe to allow
it to render a decision as to whether the proposed liquefied natural  or
petroleum  gas facility is necessary and compatible with the surrounding
environment and with the safety of neighboring populations.
  4. A LIQUEFIED NATURAL GAS TERMINAL, AND ANY PIPELINE DIRECTLY RELATED
TO THE TERMINAL, SHALL NOT ADVERSELY AFFECT THE BENEFICIAL USE,  INCLUD-
ING BUT NOT LIMITED TO, COMMERCIAL AND RECREATIONAL FISHING, RECREATION,
AGRICULTURAL  AND  WILDLIFE,  OF THE WATERS SURROUNDING THE TERMINAL AND
ANY PIPELINE DIRECTLY RELATED TO THE TERMINAL.
  5. THE DEPARTMENT SHALL NOT WAIVE ITS  RIGHTS  UNDER  33  U.S.C.  1341
REGARDING  CERTIFICATION,  OR  ITS AUTHORITY TO ISSUE NATIONAL POLLUTANT
DISCHARGE ELIMINATION SYSTEM PERMITS UNDER 33 U.S.C. 1342,  REGARDING  A
LIQUEFIED NATURAL GAS TERMINAL.
  6.  THE  DEPARTMENT  SHALL  REVIEW  WATER  QUALITY  STANDARDS THAT ARE
AFFECTED BY THE PROVISIONS OF THIS SECTION AND SECTION 23-1711  OF  THIS
TITLE IN ORDER TO ESTABLISH WATER QUALITY STANDARDS CONSISTENT WITH THIS
SECTION  AND  SECTION  23-1711  OF  THIS TITLE WITHIN ONE YEAR AFTER THE
EFFECTIVE DATE OF THE CHAPTER OF THE LAWS OF TWO THOUSAND THIRTEEN  THAT
AMENDED  THIS  SECTION.    THE DEPARTMENT SHALL SUBMIT THE WATER QUALITY
STANDARDS AT THE NEXT REGULARLY SCHEDULED REVIEW  OF  NEW  YORK  STATE'S
WATER QUALITY STANDARDS PURSUANT TO 33 U.S.C. 1313.
  7.  The  rules  and regulations adopted by the department to implement
this title and the provisions of article 70 of this  chapter  and  rules
and  regulations  adopted  thereunder  shall govern environmental safety
permit applications, renewals, modifications,  suspensions  and  revoca-
tions under this title.
  S  3.  This act shall take effect immediately; provided, however, that
effective immediately, the addition, amendment and/or repeal of any rule
or regulation necessary for the implementation of this act on its effec-
tive date is authorized and directed to be  made  and  completed  on  or
before such effective date.