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

                                 2510--A

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                            January 26, 2015
                               ___________

Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
  printed to be committed to the Committee on  Energy  and  Telecommuni-
  cations  --  recommitted  to  the Committee on Energy and Telecommuni-
  cations in  accordance  with  Senate  Rule  6,  sec.  8  --  committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN ACT to amend the public authorities law and the environmental conser-
  vation law, in relation to emission allowance programs

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

  Section 1. This act shall be known and may  be  cited  as  the  "clean
energy investment act of 2016".
  S 2. Legislative intent. It is the intent of this legislation to:
  1. promote energy efficiency, energy conservation and the installation
of renewable energy technologies;
  2. reduce energy consumption and energy costs;
  3. reduce greenhouse gas emissions;
  4. support sustainable community development; and
  5.  create  local  New  York job opportunities in the energy fields of
tomorrow.
  S 3. Subdivision 18 of section 1854 of the public authorities law,  as
added by chapter 488 of the laws of 2009, is amended to read as follows:
  18.  EMISSION  ALLOWANCE PROGRAMS. (A) TO CONTINUE TO RECEIVE FROM THE
DEPARTMENT OF ENVIRONMENTAL CONSERVATION OR OTHER  REGULATORY  AUTHORITY
OR  AGENCY, AND TO MAKE AVAILABLE FOR SALE OR AUCTION, EMISSION OR ENVI-
RONMENTAL  ALLOWANCES  OR  CREDITS,  HOWEVER  DENOMINATED;  TO  USE  THE
PROCEEDS  OF  SUCH  SALES  TO PROMOTE THE PURPOSES OF THE PROGRAMS UNDER
WHICH  THE  EMISSIONS  OR  ENVIRONMENTAL  ALLOWANCES  OR  CREDITS   WERE
RECEIVED,  INCLUDING,  BUT  NOT  LIMITED  TO, PROMOTING AND IMPLEMENTING
PROGRAMS FOR ENERGY EFFICIENCY, RENEWABLE OR NON-CARBON  EMITTING  TECH-
NOLOGIES,  INNOVATIVE  CARBON EMISSIONS ABATEMENT TECHNOLOGIES, REDUCING

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06549-02-6
              

S. 2510--A                          2

GREENHOUSE GAS EMISSIONS IN THE POWER  SECTOR,  AND  OTHER  PROGRAMS  TO
BENEFIT  CONSUMERS  AND  THE  PUBLIC;  AND  TO ENTER INTO AGREEMENTS AND
UNDERSTANDINGS WITH ANY ENTITY TO ASSIST THE AUTHORITY IN  CARRYING  OUT
THE  PURPOSES  OF  THE PROGRAMS. THE AUTHORITY SHALL AMEND OR ADOPT SUCH
RULES AND REGULATIONS AS NECESSARY TO ACCOMPLISH THE  PURPOSES  OF  THIS
SUBDIVISION.
  (B)  To  provide  for  the deposit of all or a portion of the proceeds
collected by the authority from the auction or sale of  emission  allow-
ances  allocated  by the department of environmental conservation to the
authority pursuant to regulations adopted by the department of  environ-
mental  conservation  to  a  green jobs-green New York fund to be estab-
lished in the custody of the commissioner of taxation and finance.   The
monies in such fund shall be available for the green jobs-green New York
program  pursuant  to  title nine-A of THIS article [eight of this chap-
ter].
  S 4. (a) Should the emissions cap established under part 242 of  title
6  of  the  New  York  code,  rules and regulations be lowered in such a
manner that results in increased proceeds associated with  the  sale  or
auction  of  emission  allowances subject to such part, for fiscal years
2012-2013, 2013-2014 and 2014-2015, the New York state  energy  research
and  development  authority  shall  allocate  all  proceeds in excess of
sixty-six million dollars per fiscal year collected from such auction or
sale for energy efficiency programs to reduce greenhouse gas  emissions.
Energy efficiency programs may include, but shall not be limited to: (1)
efficiency  and  load management programs; (2) demand response programs;
(3) programs for research, development and commercialization of products
of processes which are more energy-efficient than those generally avail-
able; (4) programs for development of  markets  for  such  products  and
processes, including recommendations for new appliance and product effi-
ciency  standards; (5) programs providing support for energy use assess-
ment, real time monitoring systems,  engineering  studies  and  services
related  to  new  construction  or  major building renovation, including
integration of such assessments,  systems,  studies  and  services  with
building  energy  codes  programs  and processes, or those regarding the
development of high performance or  sustainable  buildings  that  exceed
code;  (6)  programs  for the design, manufacture, commercialization and
purchase of energy-efficient appliances and  heating,  air  conditioning
and  lighting  devices;  (7)  programs  for planning and evaluation; (8)
programs providing commercial, industrial  and  institutional  customers
with greater flexibility and control over demand side investments funded
by  the programs at their facilities; and (9) programs for public educa-
tion regarding energy efficiency and demand management; provided, howev-
er, that not more than 10 percent of such funds shall  be  expended  for
items (3) and (4) collectively.
  (b) For each fiscal year thereafter, such authority shall allocate all
proceeds  collected  from  such auction or sale of such allowances allo-
cated by the department of environmental conservation as follows: (1) at
least seventy percent of such proceeds for energy efficiency and innova-
tive carbon abatement programs approved by such authority's members; and
(2) up to thirty percent of such proceeds for programs to reduce  green-
house  gas  emissions  in  the  power sector through the development and
installation of renewable electricity generation.
  S 5. Section 19-0301 of the environmental conservation law is  amended
by adding a new subdivision 6 to read as follows:
  6.  IN ADDITION TO EXISTING AUTHORITY FOR THE REGULATION OF GREENHOUSE
GAS EMISSIONS, INCLUDING THROUGH THE ESTABLISHMENT  OF  A  MARKET-BASED,

S. 2510--A                          3

MULTI-STATE  EMISSION  ALLOWANCE TRADING PROGRAM WITH MECHANISMS FOR THE
AUCTIONING OF EMISSION ALLOWANCES AND THE SETTING OF  A  RESERVE  PRICE,
PROVIDED IN THIS ARTICLE AND ARTICLES ONE AND THREE OF THIS CHAPTER, THE
DEPARTMENT SHALL:
  (A)  IN  COOPERATION WITH THE DEPARTMENT OF PUBLIC SERVICE AND THE NEW
YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY, AMEND PART 242  OF
TITLE 6 OF THE NEW YORK CODE, RULES AND REGULATIONS TO, IN A MANNER THAT
IS  CONSISTENT  WITH  FEDERAL  LAW,  COVER ELECTRICITY IMPORTED INTO THE
STATE, REGULATE BY THE IMPOSITION  OF  EQUIVALENT  FEES  ON  THE  CARBON
INTENSITY  OF  ELECTRICITY IMPORTED INTO THE STATE, OR OTHERWISE, TO THE
EXTENT DEEMED NECESSARY, MAINTAIN THE  ENVIRONMENTAL  INTEGRITY  OF  THE
MULTI-STATE PROGRAM IN WHICH THE STATE PARTICIPATES THAT WAS ESTABLISHED
AS  A MEANS OF REDUCING EMISSIONS FROM ELECTRIC GENERATING FACILITIES AS
PROVIDED IN SUCH PART 242;
  (B) AMEND PART 242 OF TITLE 6 OF THE NEW YORK CODE,  RULES  AND  REGU-
LATIONS,  TO  REDUCE  NEW YORK'S ALLOWANCE ALLOCATIONS IN AN AMOUNT THAT
WOULD  BE  CONSISTENT  WITH  ITS  ALLOWANCE  UNDER  A  REGIONAL  CAP  OF
EIGHTY-FIVE MILLION TONS;
  (C)  REQUIRE  THAT  AT  THE  END  OF EACH COMPLIANCE PERIOD ALL UNSOLD
ALLOWANCES BE RETIRED;
  (D) LINK WITH OTHER JURISDICTIONAL PROGRAMS; AND
  (E) INCREASE THE RESERVE PRICE TO TEN DOLLARS PER ALLOWANCE AND ESTAB-
LISH A COST CONTAINMENT CEILING PRICE FOR THE SALE OR AUCTION  OF  EMIS-
SION ALLOWANCES, AS DEEMED APPROPRIATE BY THE DEPARTMENT.
  S 6. Severability clause. If any clause, sentence, paragraph, subdivi-
sion,  section  or  part  of  this act shall be adjudged by any court of
competent jurisdiction to be invalid, such judgment  shall  not  affect,
impair,  or  invalidate  the remainder thereof, but shall be confined in
its operation to the clause, sentence, paragraph,  subdivision,  section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the  legislature  that  this  act  would  have been enacted even if such
invalid provisions had not been included herein.
  S 7. This act shall take effect immediately.