S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3593
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             February 11, 2019
                                ___________
 
 Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
   printed to be committed to the Committee on  Energy  and  Telecommuni-
   cations
 
 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 2019".
   § 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.
   § 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
 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD09568-01-9

 S. 3593                             2
 
 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].
   § 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
 paragraphs (3) and (4) of this subdivision 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.
   § 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,
 MULTI-STATE  EMISSION  ALLOWANCE TRADING PROGRAM WITH MECHANISMS FOR THE
 AUCTIONING OF EMISSION ALLOWANCES AND THE SETTING OF  A  RESERVE  PRICE,

 S. 3593                             3
 
 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 ALLOW-
 ANCES 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.
   § 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.
   § 7. This act shall take effect immediately.