S T A T E O F N E W Y O R K
________________________________________________________________________
9033
I N A S S E M B L Y
January 19, 2016
___________
Introduced by M. of A. BARCLAY -- read once and referred to the Commit-
tee on Energy
AN ACT to require the public service commission and the New York state
energy research and development authority to implement a low carbon
portfolio standard; and to amend the public authorities law and the
state finance law, in relation to creating the zero carbon emission
investment program and zero carbon emission investment program fund
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The public service commission, hereafter referred to as the
commission, is hereby directed to establish parameters for the creation
of a low carbon portfolio standard in New York state, and to replace the
renewable portfolio standard with the newly created standard. The
commission will consider new targets for the purchase of low carbon-em-
itting electricity sources, including no less than seventeen percent of
electricity derived from nuclear generating facilities.
S 2. The New York state energy research and development authority,
hereafter referred to as the authority, shall act as the central
procurement agency to promote low carbon emissions energy development in
the state. The authority shall provide incentives for low carbon gener-
ation; and shall hold all rights and claims to low carbon attributes of
electricity generated to meet the state's low carbon goals.
S 3. The renewable portfolio standard charge shall now be referred to
as the low carbon portfolio standard charge. The authority shall manage
any funds gathered through such surcharge on each kilowatt-hour sold by
the state's investor-owned utilities. The surcharge shall be kept sepa-
rate from any other state funds. Any customers exempt from contributing
to the SBC are also exempt from the low carbon portfolio standard
charge.
S 4. Article 8 of the public authorities law is amended by adding a
new title 9-B to read as follows:
TITLE 9-B
ZERO CARBON EMISSION INVESTMENT PROGRAM
SECTION 1900. SHORT TITLE.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13260-03-6
A. 9033 2
1901. DEFINITIONS.
1902. ADMINISTRATION BY THE AUTHORITY.
1903. CALCULATION OF AWARDS.
1904. ANNUAL REPORTING.
1905. FUNDS ADMINISTRATION.
S 1900. SHORT TITLE. THIS TITLE SHALL BE KNOWN AND MAY BE CITED AS THE
"ZERO CARBON EMISSION INVESTMENT PROGRAM".
S 1901. DEFINITIONS. AS USED IN THIS TITLE, THE FOLLOWING TERMS SHALL
HAVE THE FOLLOWING MEANINGS:
1. "AVOIDED EMISSIONS" MEANS THE ESTIMATE OF CO2 EMISSIONS, AS CALCU-
LATED BY THE AUTHORITY, THAT WOULD HAVE BEEN RELEASED IF A ZERO CARBON
EMITTER HAD NOT EXISTED.
2. "AUTHORITY" SHALL HAVE THE SAME MEANING AS IN SUBDIVISION TWO OF
SECTION EIGHTEEN HUNDRED FIFTY-ONE OF THIS ARTICLE.
3. "ZERO CARBON EMITTER" MEANS A FACILITY THAT USES ATOMIC ENERGY TO
GENERATE ELECTRICITY.
4. "ATOMIC ENERGY" MEANS ALL FORMS OF ENERGY RELEASED IN THE COURSE OF
NUCLEAR FISSION OR NUCLEAR TRANSFORMATION.
5. "CLEARING PRICE" MEANS THE AVERAGE OF THE QUARTERLY REGIONAL GREEN-
HOUSE GAS INITIATIVE AUCTION CLEARING PRICES FOR THE CURRENT YEAR.
S 1902. ADMINISTRATION BY THE AUTHORITY. WITHIN SIX MONTHS OF THE
EFFECTIVE DATE OF THIS TITLE, THE AUTHORITY IS HEREBY AUTHORIZED AND
DIRECTED TO ESTABLISH AND ADMINISTER THE ZERO CARBON EMISSION INVESTMENT
PROGRAM. THE AUTHORITY SHALL IMPLEMENT THE PROGRAM IN CONSULTATION WITH
THE DEPARTMENT OF PUBLIC SERVICE, THE POWER AUTHORITY OF THE STATE OF
NEW YORK, AND THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION. THE AUTHORI-
TY IS AUTHORIZED AND DIRECTED TO:
1. USE MONIES MADE AVAILABLE FOR THE PROGRAM PURSUANT TO SECTION NINE-
TEEN HUNDRED FIVE OF THIS TITLE TO ACHIEVE THE PURPOSES OF THE PROGRAM,
SPECIFICALLY TO AWARD ZERO CARBON EMITTERS FOR AVOIDED EMISSIONS;
2. ENSURE MONIES ARE MADE AVAILABLE TO QUALIFYING ZERO CARBON EMITTERS
NO LESS THAN SIXTY DAYS AFTER THE FINAL QUARTERLY AUCTION OF THAT YEAR;
AND
3. EXERCISE SUCH OTHER POWERS AS ARE NECESSARY FOR THE PROPER ADMINIS-
TRATION OF THE PROGRAM.
S 1903. CALCULATION OF AWARDS. THE AUTHORITY SHALL CALCULATE AND ISSUE
AN AWARD TO EACH ZERO CARBON EMITTER IN THE FOLLOWING MANNER: THE
AUTHORITY SHALL TAKE THE AVERAGE OF THE FOUR QUARTERLY AUCTION CLEARING
PRICES OF THE MOST RECENT YEAR MULTIPLIED BY FIFTY PERCENT OF THE ZERO
CARBON EMITTER'S AVOIDED EMISSIONS TO DETERMINE SUCH AWARD. THE AUTHORI-
TY SHALL CALCULATE THE ANNUAL AVOIDED EMISSIONS FOR EACH FACILITY.
S 1904. ANNUAL REPORTING. NO LATER THAN OCTOBER FIRST, TWO THOUSAND
SEVENTEEN AND OCTOBER FIRST OF EACH YEAR THEREAFTER, THE PRESIDENT OF
THE AUTHORITY SHALL ISSUE AN ANNUAL REPORT TO THE GOVERNOR, THE TEMPO-
RARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY, THE MINORITY
LEADER OF THE SENATE AND THE MINORITY LEADER OF THE ASSEMBLY CONCERNING
THE AUTHORITY'S ACTIVITIES RELATED TO THE ZERO CARBON EMISSION INVEST-
MENT PROGRAM CREATED PURSUANT TO THIS TITLE.
S 1905. FUNDS ADMINISTRATION. THE AUTHORITY SHALL ENSURE THAT NOT LESS
THAN THE TOTAL AWARDS ISSUED TO QUALIFYING ZERO CARBON EMITTERS IS MADE
AVAILABLE FOR THE PURPOSE OF FUNDING THE ZERO CARBON EMISSION INVESTMENT
PROGRAM. THE ZERO CARBON EMISSION INVESTMENT PROGRAM FUND ESTABLISHED
PURSUANT TO SECTION NINETY-NINE-Y OF THE STATE FINANCE LAW SHALL CONSIST
OF MONIES COLLECTED BY AUCTIONS ADMINISTERED UNDER THE REGIONAL GREEN-
HOUSE GAS INITIATIVE.
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S 5. The state finance law is amended by adding a new section 99-y to
read as follows:
S 99-Y. ZERO CARBON EMISSION INVESTMENT PROGRAM FUND. 1. THERE IS
HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE STATE COMPTROLLER AND THE
COMMISSIONER OF TAXATION AND FINANCE A SPECIAL FUND TO BE KNOWN AS THE
"ZERO CARBON EMISSION INVESTMENT PROGRAM FUND". THE MONIES IN SUCH FUND
SHALL BE AVAILABLE FOR THE ZERO-CARBON EMISSION INVESTMENT PROGRAM
PURSUANT TO TITLE NINE-B OF ARTICLE EIGHT OF THE PUBLIC AUTHORITIES LAW.
2. MONIES IN THE ZERO CARBON EMISSION INVESTMENT PROGRAM FUND SHALL BE
KEPT SEPARATELY FROM AND SHALL NOT BE COMMINGLED WITH ANY OTHER MONIES
IN THE JOINT OR SOLE CUSTODY OF THE STATE COMPTROLLER OR THE COMMISSION-
ER OF TAXATION AND FINANCE. ANY INTEREST RECEIVED BY THE COMPTROLLER ON
MONEYS DEPOSITED IN THE ZERO CARBON EMISSION INVESTMENT PROGRAM FUND
SHALL BE RETAINED IN AND BECOME A PART OF SUCH FUND.
S 6. This act shall take effect immediately.