S T A T E O F N E W Y O R K
________________________________________________________________________
8888
I N A S S E M B L Y
February 27, 2014
___________
Introduced by M. of A. MOYA -- read once and referred to the Committee
on Energy
AN ACT to amend the public service law, the public authorities law, and
the environmental conservation law, in relation to biomass-fired elec-
tric generating facilities subject to the regional greenhouse gas
initiative, the CO2 budget trading program, and the CO2 allowance
auction program
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Legislative intent. The legislature hereby finds and
declares that it is in the economic and environmental interests of the
citizens of the state of New York to support and encourage renewable
energy generation through the conversion of coal-fired electric generat-
ing facilities to biomass-fired facilities. The combustion of biomass
offers a sustainable and manageable carbon lifecycle since the materials
included in biomass generally absorb atmospheric carbon during their
lifecycle and then return it to the atmosphere during combustion. This
process mimics the natural lifecycle of plant life that can fall to the
forest floor, decompose and return its carbon to the atmosphere.
The legislature further finds and declares that biomass production
facilities support and sustain jobs, particularly in upstate New York,
where more than four thousand people are employed directly or indirectly
by the industry. In fact, many of the largest and most successful biom-
ass facilities are located in parts of New York state that have high
unemployment and are in desperate need of economic development. New York
state also possesses an abundance of biomass fuel due to the large
amount of untapped forest and agricultural land where biomass fuel can
be collected. Biomass is the equivalent of solar energy stored in organ-
ic matter and is environmentally friendly while costing around one third
of the cost of fossil fuels.
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
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13745-01-4
A. 8888 2
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 not be required under the RGGI
regulations to obtain CO2 allowances for CO2 emissions attributable to
the burning of biomass fuel.
S 2. The public service law is amended by adding a new section 73 to
read as follows:
S 73. COOPERATION WITH THE NEW YORK STATE ENERGY RESEARCH AND DEVELOP-
MENT AUTHORITY AND THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION. THE
DEPARTMENT SHALL COOPERATE WITH THE NEW YORK STATE ENERGY RESEARCH AND
DEVELOPMENT AUTHORITY AND THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION
IN THE IMPLEMENTATION OF SUBDIVISION FOUR OF SECTION 19-0312 OF THE
ENVIRONMENTAL CONSERVATION LAW RELATING TO ELECTRIC GENERATING FACILI-
TIES THAT ARE SUBJECT TO THE CO2 BUDGET TRADING PROGRAM (6 NYCRR PART
242) ESTABLISHED BY THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION IN
CONNECTION WITH THE REGIONAL GREENHOUSE GAS INITIATIVE.
S 3. Section 1854 of the public authorities law is amended by adding a
new subdivision 22 to read as follows:
22. COOPERATION WITH THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION AND
THE DEPARTMENT OF PUBLIC SERVICE. THE AUTHORITY SHALL COOPERATE WITH THE
DEPARTMENT OF ENVIRONMENTAL CONSERVATION AND THE DEPARTMENT OF PUBLIC
SERVICE IN THE IMPLEMENTATION OF SUBDIVISION FOUR OF SECTION 19-0312 OF
THE ENVIRONMENTAL CONSERVATION LAW RELATING TO ELECTRIC GENERATING
FACILITIES THAT ARE SUBJECT TO THE CO2 BUDGET TRADING PROGRAM (6 NYCRR
PART 242) ESTABLISHED BY THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION IN
CONNECTION WITH THE REGIONAL GREENHOUSE GAS INITIATIVE.
S 4. Section 19-0312 of the environmental conservation law is amended
by adding a new subdivision 4 to read as follows:
4. NOTWITHSTANDING ANY LAW, RULE, REGULATION OR POLICY TO THE CONTRA-
RY, AN ELECTRIC GENERATING FACILITY THAT USES BIOMASS FOR MORE THAN
FIFTY PERCENT OF ITS ANNUAL HEAT INPUT SHALL NOT BE REQUIRED TO OBTAIN
CO2 ALLOWANCES FOR CO2 EMISSIONS ATTRIBUTABLE TO THE BURNING OF BIOMASS
UNDER THE CO2 BUDGET TRADING PROGRAM (6 NYCRR PART 242), WHICH WAS
ESTABLISHED BY THE DEPARTMENT IN CONNECTION WITH THE REGIONAL GREENHOUSE
GAS INITIATIVE, TO THE EXTENT THAT SUCH ELECTRIC GENERATING FACILITY
USES BIOMASS IN A STATIONARY BOILER, COMBUSTION TURBINE OR A COMBINED
CYCLE SYSTEM THAT (I) WAS FORMERLY FOSSIL FUEL-FIRED DUE TO THE USE OF
COAL AS ITS PRIMARY FUEL AND (II) 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. FOR THE PURPOSES OF THIS SUBDIVISION,
THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
A. "BIOMASS" SHALL MEAN:
(I) ANY ORGANIC MATERIAL GROWN FOR THE PURPOSE OF BEING CONVERTED TO
ENERGY;
(II) ANY ORGANIC BYPRODUCT OF AGRICULTURE THAT CAN BE CONVERTED INTO
ENERGY; OR
(III) ANY MATERIAL THAT CAN BE CONVERTED INTO ENERGY AND IS NONMER-
CHANTABLE FOR OTHER PURPOSES, THAT IS SEGREGATED FROM OTHER NONMERCHANT-
ABLE MATERIAL, AND THAT IS:
A. 8888 3
(1) A FOREST-RELATED ORGANIC RESOURCE, INCLUDING MILL RESIDUES,
PRECOMMERCIAL THINNINGS, SLASH, BRUSH, OR BYPRODUCT FROM CONVERSION OF
TREES TO MERCHANTABLE MATERIAL; OR
(2) A WOOD MATERIAL, INCLUDING PALLETS, CRATES, DUNNAGE, MANUFACTURING
AND CONSTRUCTION MATERIALS (OTHER THAN PRESSURE-TREATED,
CHEMICALLY-TREATED, OR PAINTED WOOD PRODUCTS), AND LANDSCAPE OR
RIGHT-OF-WAY TREE TRIMMINGS.
B. "BOILER", "COMBUSTION TURBINE", "COMBINED CYCLE SYSTEM", "FOSSIL
FUEL-FIRED", AND "PRIMARY FUEL" SHALL HAVE THE SAME MEANINGS AS ASCRIBED
TO SUCH TERMS IN 6 NYCRR 242-1.2.
S 5. This act shall take effect on the ninetieth day after it shall
have become a law and shall apply to all control periods commencing on
or after January 1, 2012; provided however, that effective immediately
the department of environmental conservation is authorized and directed
to amend, revise and/or repeal any rule, regulation or policy necessary
for the implementation of this act on or before such effective date.