S T A T E   O F   N E W   Y O R K
________________________________________________________________________
                                  6499
                            I N  S E N A T E
                            January 30, 2014
                               ___________
Introduced  by  Sens. MAZIARZ, RITCHIE, GRIFFO -- read twice and ordered
  printed, and when printed to be committed to the Committee  on  Energy
  and Telecommunications
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
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              
             
                          
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S. 6499                             2
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 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
S. 6499                             3
  (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:
  (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.