The New York State Senate

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8597
 
                           I N  A S S E M B L Y
 
                             January 10, 2022
                                ___________
 
 Introduced  by  M. of A. FAHY -- read once and referred to the Committee
   on Environmental Conservation
 
 AN ACT to amend the  environmental  conservation  law,  in  relation  to
   enacting  the  carbon  dioxide  removal  leadership act; and to repeal
   certain provisions of the tax law relating to taxes on carbon  dioxide
   emissions

   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  "Carbon
 Dioxide  Removal  Leadership  Act".  This  act directs New York state to
 procure carbon dioxide removal services in order  to  achieve  statewide
 net zero greenhouse gas emissions pursuant to legally enforceable limits
 set  forth  in paragraph b of subdivision four of section 75-0109 of the
 environmental conservation law. The use  of  such  mechanism  creates  a
 target  for  carbon dioxide removal by the year two thousand fifty equal
 to fifteen percent of statewide greenhouse gas emissions estimated as  a
 percentage  of  emissions in the year nineteen hundred ninety, and shall
 be implemented in lieu of  any  alternative  compliance  mechanism  that
 would  permit  greenhouse gas emissions offset projects. The procurement
 of carbon dioxide removal services shall  not  result  in  disadvantaged
 communities  having  to  bear a disproportionate burden of environmental
 impacts, and shall incorporate preferential consideration  for  projects
 that result in quantifiable economic and social benefits for such commu-
 nities.
   §  2.  The  environmental  conservation law is amended by adding a new
 article 76 to read as follows:
 
                                ARTICLE 76
                          CARBON DIOXIDE REMOVAL
 
 SECTION 76-0101. DEFINITIONS.
         76-0103. NEW YORK STATE CARBON DIOXIDE REMOVAL REVERSE AUCTION.
         76-0105. CARBON  DIOXIDE  REMOVAL  MEASUREMENT,  REPORTING   AND
                    VERIFICATION.

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

                                                            LBD14092-01-1
 A. 8597                             2
 
         76-0107. BID PREFERENCES.
         76-0109. ON-GOING BIDDER RESPONSIBILITIES.
         76-0111. REVERSE AUCTION FUNDING.
         76-0113. CARBON DIOXIDE REMOVAL AND EQUITY SURVEY.
         76-0115. AUTHORITY AND COMPLIANCE.
         76-0117. SEVERABILITY.
 § 76-0101. DEFINITIONS.
   FOR  THE  PURPOSES OF THIS ARTICLE, THE FOLLOWING TERMS SHALL HAVE THE
 FOLLOWING MEANINGS:
   1. "ANNUAL PRICE PER TON" MEANS THE MAXIMUM PRICE PER  METRIC  TON  OF
 CDR WHICH THE STATE WILL PAY PER BID IN A GIVEN YEAR.
   2.  "ANNUAL  REMOVAL  TARGET" MEANS THE MINIMUM TOTAL VOLUME OF CARBON
 DIOXIDE REMOVAL, EXPRESSED IN METRIC TONS OF CARBON DIOXIDE  EQUIVALENT,
 FOR  WHICH THE DEPARTMENT WILL SOLICIT BIDS IN A GIVEN YEAR, SUCH AMOUNT
 TO BE INCREASED BY THE PORTION OF THE ANNUAL REMOVAL TARGET NOT  MET  IN
 THE PRIOR YEAR.
   3. "BID" MEANS A BID FULFILLING THE REQUIREMENTS OF SECTION 76-0105 OF
 THIS ARTICLE.
   4.  "BID PRICE" MEANS THE TOTAL PRICE THE BIDDER IS WILLING TO BE PAID
 IN A GIVEN BID FOR PROVIDING CARBON DIOXIDE REMOVAL.
   5. "BIDDER" MEANS A PERSON OR  ENTITIES  QUALIFIED  TO  SUBMIT  A  BID
 PURSUANT  TO THE REQUIREMENTS SET FORTH IN SECTION 76-0109 OF THIS ARTI-
 CLE.
   6. "CARBON DIOXIDE EQUIVALENT" OR "CO2E" MEANS THE  AMOUNT  OF  CARBON
 DIOXIDE  BY  MASS THAT WOULD PRODUCE THE SAME GLOBAL WARMING IMPACT AS A
 GIVEN MASS OF ANOTHER GREENHOUSE GAS OVER AN INTEGRATED TWENTY-FIVE-YEAR
 TIME FRAME AFTER EMISSION.
   7. "CARBON DIOXIDE REMOVAL" OR "CDR"  MEANS  REMOVING  CARBON  DIOXIDE
 FROM  THE  ATMOSPHERE,  ON  A  NET  BASIS  TO CDR PROCESS EMISSIONS, AND
 DURABLY STORING IT IN GEOLOGICAL, TERRESTRIAL, OR OCEAN  RESERVOIRS,  OR
 IN LONG-LIVED PRODUCTS.
   8. "CDR PROCESS" MEANS THE PHYSICAL PROCESS BY WHICH CARBON DIOXIDE IS
 REMOVED FROM THE ATMOSPHERE AND DURABLY SEQUESTERED OR STORED.
   9.  "CDR  PROJECT" MEANS THE SPECIFIC PROJECT WHICH WILL BE DELIVERING
 THE CDR OUTLINED IN A GIVEN BID.
   10. "CARBON REMOVAL FEE" MEANS A FEE LEVIED BY  THE  STATE  AGAINST  A
 HARD-TO-ABATE EMISSIONS SOURCE FOR THE PURPOSE OF FUNDING THIS ACT.
   11. "DEPARTMENT" MEANS THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION.
   12. "DISADVANTAGED COMMUNITIES" MEANS COMMUNITIES THAT BEAR BURDENS OF
 NEGATIVE  PUBLIC  HEALTH  EFFECTS,  ENVIRONMENTAL  POLLUTION, IMPACTS OF
 CLIMATE CHANGE, AND POSSESS CERTAIN SOCIOECONOMIC CRITERIA, OR  COMPRISE
 HIGH CONCENTRATIONS OF LOW- AND MODERATE-INCOME HOUSEHOLDS.
   13.  "DURABILITY"  OR "DURABLE" MEANS THE SECURE SEQUESTRATION OF CO2E
 IN THE GEOSPHERE, IN THE OCEAN, IN LONG-LIVED  PRODUCTS,  OR  OTHERWISE,
 MEASURED AS A UNIT OF TIME.
   14.  "GREENHOUSE  GAS"  MEANS  CARBON DIOXIDE, METHANE, NITROUS OXIDE,
 HYDROFLUOROCARBONS, PERFLUOROCARBONS, SULFUR HEXAFLUORIDE, AND ANY OTHER
 SUBSTANCE EMITTED INTO THE AIR THAT MAY  BE  REASONABLY  ANTICIPATED  TO
 CAUSE OR CONTRIBUTE TO ANTHROPOGENIC CLIMATE CHANGE.
   15. "LIFE-CYCLE ANALYSIS" OR "LCA" MEANS A COMPLETE, END-TO-END ANALY-
 SIS  OF  THE  GREENHOUSE  GAS  EMISSIONS  RESULTING  FROM A CDR PROCESS,
 INCLUDING, BUT NOT LIMITED TO, MANUFACTURING,  TRANSPORTATION,  UTILIZA-
 TION,  SEQUESTRATION  AND OTHER PROCESSES OCCURRING PRIOR TO, DURING, OR
 AFTER, THE CDR PROCESS WHICH ARE REQUIRED TO ACHIEVE CDR.
   16. "MEASUREMENT, REPORTING AND VERIFICATION" OR "MRV" MEANS THE VERI-
 FIED MEASUREMENT AND REPORTING OF CDR USING AN OBJECTIVE,  PEER-REVIEWED
 A. 8597                             3
 
 AND  SCIENTIFICALLY  SUPPORTED  ACCOUNTING  METHODOLOGY  AND TAKING INTO
 ACCOUNT REGIONALLY APPROPRIATE SAMPLING AND DATA COLLECTION  METHODS  TO
 QUANTIFY  EMISSIONS  AND  REMOVALS  ASSOCIATED  WITH THE CDR PROCESS AND
 DURABILITY OF REMOVAL INSTEAD OF SOLELY MODEL-BASED OR STATISTICAL METH-
 ODS.
   17. "MEGATON" OR "MT" MEANS ONE MILLION METRIC TONS.
   18.  "MINIMUM  BID" MEANS THE MINIMUM VOLUME OF CDR FOR WHICH A BIDDER
 MAY SUBMIT A BID.
   19. "REVERSE AUCTION" MEANS  A  BIDDING  PROCESS  IN  WHICH  QUALIFIED
 BIDDERS  SUBMIT  BIDS  FOR  CDR  TO REMOVE AND DURABLY STORE A SPECIFIED
 QUANTITY OF CO2E IN EXCHANGE FOR PAYMENT BY THE STATE.
   20. "SOCIAL COST" MEANS A MEASURE, IN DOLLARS, OF THE LONG-TERM DAMAGE
 DONE BY A TON OF CO2E EMISSIONS IN A GIVEN YEAR.
   21. "TON" MEANS METRIC TON, OR TONNE (ONE THOUSAND KILOGRAMS).
   22. "TOTAL ANNUAL BID" MEANS THE TOTAL VOLUME OF CDR  FOR  WHICH  BIDS
 WERE SUBMITTED IN A GIVEN YEAR.
 § 76-0103. NEW YORK STATE CARBON DIOXIDE REMOVAL REVERSE AUCTION.
   1.  PURSUANT  TO PARAGRAPH A OF SUBDIVISION FOUR OF SECTION 75-0109 OF
 THIS CHAPTER, BEGINNING  IN  THE  YEAR  TWO  THOUSAND  TWENTY-FIVE,  THE
 DEPARTMENT  SHALL ANNUALLY CONDUCT A REVERSE AUCTION FOR THE PURCHASE OF
 CDR. THE DEPARTMENT SHALL INITIATE THE REVERSE AUCTION  ON  APRIL  FIRST
 AND CLOSE THE REVERSE AUCTION ON JUNE THIRTIETH OF EACH YEAR THE REVERSE
 AUCTION IS HELD.
   2.  ALL  VERIFIED  CDR PURCHASED BY THE DEPARTMENT THROUGH THE REVERSE
 AUCTION SHALL BE CONSIDERED A GREENHOUSE GAS EMISSION OFFSET AS  DEFINED
 IN ARTICLE SEVENTY-FIVE OF THIS CHAPTER.
   3.  THE  DEPARTMENT  SHALL  CONDUCT THE REVERSE AUCTION SUBJECT TO THE
 FOLLOWING REQUIREMENTS:
   A. THE DEPARTMENT SHALL ACCEPT QUALIFYING BIDS UP TO THE MAXIMUM AVER-
 AGE PRICE PER TON OF CDR TO MEET THE ANNUAL REMOVAL TARGET;
   B. THE MINIMUM BID FOR EIGHTY PERCENT OF  THE  ANNUAL  REMOVAL  TARGET
 SHALL BE NO LESS THAN 0.01MT, OR TEN THOUSAND TONS OF CDR;
   C.  THE  MINIMUM  BID  FOR TWENTY PERCENT OF THE ANNUAL REMOVAL TARGET
 SHALL BE NO LESS THAN 0.001MT, OR ONE THOUSAND TONS OF CDR;
   D. BIDS SHALL INCLUDE A TERM FOR DELIVERY  THAT  MAY  NOT  EXCEED  TEN
 YEARS; AND
   E.  THE  DEPARTMENT SHALL NOT ACCEPT BIDS CAUSING THE TOTAL ANNUAL BID
 TO EXCEED THE MAXIMUM AVERAGE PRICE  PER  TON  PURSUANT  TO  SUBDIVISION
 THREE OF THIS SECTION.
   4.  THE  MAXIMUM  AVERAGE  PRICE PER TON OF CDR SHALL BE THREE HUNDRED
 FIFTY DOLLARS IN THE YEAR TWO THOUSAND TWENTY-FIVE, AND  SHALL  DECREASE
 BY FIVE PERCENT EACH YEAR SUBSEQUENTLY AS ADJUSTED FOR INFLATION.
   5.  AT  LEAST  SIXTY  DAYS  PRIOR TO OPENING EACH REVERSE AUCTION, THE
 DEPARTMENT SHALL  ESTABLISH  THE  ANNUAL  REMOVAL  TARGET.  SUCH  ANNUAL
 REMOVAL  TARGET  SHALL  BE  SET  TO  ACHIEVE THE GREENHOUSE GAS EMISSION
 OFFSET OBJECTIVES PURSUANT TO PARAGRAPH B OF SUBDIVISION FOUR OF SECTION
 75-0109 OF THIS CHAPTER AND SHALL BE NO LESS THAN 0.1MT IN TWO  THOUSAND
 TWENTY-FIVE.  THE DEPARTMENT SHALL INCREASE THE ANNUAL REMOVAL TARGET BY
 AT LEAST THE FOLLOWING AMOUNTS ANNUALLY:
   A.  ONE HUNDRED PERCENT PER YEAR FROM THE YEAR TWO THOUSAND TWENTY-SIX
 THROUGH TWO THOUSAND TWENTY-NINE;
   B. TWENTY-FIVE PERCENT PER YEAR FROM  THE  YEAR  TWO  THOUSAND  THIRTY
 THROUGH TWO THOUSAND THIRTY-NINE;
   C.  TWENTY  PERCENT  PER YEAR FROM THE YEAR TWO THOUSAND FORTY THROUGH
 TWO THOUSAND FORTY-FOUR;
 A. 8597                             4

   D. TEN PERCENT PER YEAR FROM THE YEAR TWO THOUSAND FORTY-FIVE  THROUGH
 TWO THOUSAND FORTY-NINE; AND
   E. THREE PERCENT IN THE YEAR TWO THOUSAND FIFTY.
   6.  THE DEPARTMENT SHALL ACCEPT QUALIFYING BIDS SUFFICIENT TO MEET THE
 ANNUAL REMOVAL TARGET, BASED ON THE CRITERIA OUTLINED IN SECTION 76-0107
 OF THIS ARTICLE. IF THE TOTAL ANNUAL BID IS LESS THAN THE ANNUAL REMOVAL
 TARGET, THE DEPARTMENT SHALL INCREASE THE ANNUAL REMOVAL TARGET  IN  THE
 SUBSEQUENT  YEAR BY THE DIFFERENCE BETWEEN THE ANNUAL REMOVAL TARGET AND
 THE TOTAL ANNUAL BID.
   7. THE DEPARTMENT SHALL PUBLICLY ANNOUNCE THE WINNING  BIDS;  PUBLICLY
 RELEASE  THE WINNING BIDDERS' PROPOSALS AND SCORECARDS AND CONTRACT WITH
 THE WINNING BIDDERS NO LATER THAN SEPTEMBER THIRTIETH OF EACH YEAR.
   8. THE DEPARTMENT SHALL RECOMMEND ANY NECESSARY REVISION  TO  SUBDIVI-
 SIONS  THREE  AND  FOUR OF THIS SECTION BASED ON CURRENT AND ANTICIPATED
 CDR MARKET CONDITIONS IN ADVANCE OF EACH FUNDING REAUTHORIZATION  STIPU-
 LATED BY SECTION 76-0111 OF THIS ARTICLE.
 § 76-0105. CARBON  DIOXIDE  REMOVAL MEASUREMENT, REPORTING AND VERIFICA-
              TION.
   1. EACH BID SUBMITTED TO THE DEPARTMENT  MUST  CONTAIN  THE  FOLLOWING
 INFORMATION:
   A.  LEGAL  NAME,  ADDRESS,  CONTACT  INFORMATION  AND HISTORY OF PRIOR
 PARTICIPATION IN THE CDR REVERSE AUCTION, OR OTHER  PUBLIC  OR  PRIVATE-
 MARKET PROCUREMENT PROGRAMS, FOR EACH ENTITY OR PERSON SUBMITTING A BID;
   B. THE TOTAL VOLUME OF CDR TO BE ACHIEVED PURSUANT TO THE BID;
   C.  THE LENGTH OF TIME THE BIDDER WILL REQUIRE TO DELIVER THE PROPOSED
 CDR PROJECT;
   D. A DESCRIPTION OF THE CDR PROCESS AND THE CDR PROJECT;
   E. LCA OF EACH CDR  PROCESS  REQUIRED  TO  ACHIEVE  THE  PROPOSED  CDR
 PROJECT;
   F. LAND AREA AND WATER VOLUME EMPLOYED FOR CDR PROJECT;
   G. DESCRIPTION, QUANTIFIED WHERE POSSIBLE, OF THE FOLLOWING EXTERNALI-
 TIES AND/OR CO-BENEFITS RESULTING FROM THE CDR PROJECT:
   (I)  ECOSYSTEM AND ECOLOGICAL HARMS AND CO-BENEFITS, INCLUDING IMPACTS
 ON THE SURROUNDING SOIL HEALTH, BIODIVERSITY, AND WATER AND AIR QUALITY;
   (II) JOB CREATION AND INDUSTRIAL DEVELOPMENT BENEFITS, PARTICULARLY IN
 DISADVANTAGED COMMUNITIES; AND
   (III) EQUITY AND ENVIRONMENTAL JUSTICE IMPACTS;
   H. DESCRIPTION OF THE MRV THE BIDDER WILL EMPLOY FOR THE CDR  PROJECT,
 FROM AN INDEPENDENT THIRD-PARTY DEEMED ACCEPTABLE BY THE DEPARTMENT THAT
 VERIFIES ALL REQUIREMENTS OF THIS SECTION;
   I.  LEGALLY  BINDING  ATTESTATION  BY EACH BIDDER THAT THE INFORMATION
 PROVIDED IS ACCURATE AND THAT ALL REQUIREMENTS OF THIS SECTION ARE  MET;
 AND
   J.  ANY  ADDITIONAL  INFORMATION THE DEPARTMENT REASONABLY REQUESTS TO
 ASSESS THE BID.
   2. THE LCA MUST DEMONSTRATE, AND THE MRV MUST VERIFY, THAT THE  CARBON
 DIOXIDE  WILL  BE  REMOVED  FROM THE ATMOSPHERE AND SECURELY AND DURABLY
 STORED FOR AT LEAST ONE HUNDRED YEARS FROM THE  DATE  OF  CDR.  HOWEVER,
 SUCH CDR MAY NOT BE USED IN THE EXTRACTION OR RECOVERY OF OIL OR GAS.
   3.  THE  CDR  FOR  WHICH  THE  BID  IS  SUBMITTED MUST COMMENCE AND BE
 COMPLETED AS SOON AS REASONABLY COMMERCIALLY POSSIBLE, BUT COMPLETED  NO
 LATER THAN TEN YEARS FROM THE EFFECTIVE DATE OF THE CONTRACT BETWEEN THE
 DEPARTMENT  AND  BIDDER. THE DEPARTMENT MAY USE ITS DISCRETION TO DETER-
 MINE PAYMENT SCHEDULE FOR THE CDR, AND HOW MUCH, IF ANY, PAYMENT  IS  TO
 BE REMITTED IN ADVANCE, AND HOW MUCH ON DELIVERY.
 A. 8597                             5
 
   4.  THE  CDR  PROJECT FOR WHICH THE BID IS SUBMITTED MUST BE UNIQUE TO
 THIS TRANSACTION AND ADDITIONAL TO ANY PRIOR OR  OTHERWISE  EXISTING  OR
 PLANNED  CDR, AND MAY NOT BE USED AS PART OF ANY OTHER PRIVATE OR PUBLIC
 TRANSACTION FOR CARBON REMOVAL.
   5. METHODS OF CDR MAY INCLUDE, BUT ARE NOT LIMITED TO:
   A. TERRESTRIAL MINERALIZATION OR ENHANCED ROCK WEATHERING;
   B.  TERRESTRIAL  BIOMASS  CARBON  REMOVAL AND STORAGE SUCH AS BIOCHAR,
 BIO-OIL OR BIO-ENERGY WITH CARBON CAPTURE AND SEQUESTRATION;
   C. HYDROLOGICAL OR MARINE-BASED CDR INCLUDING ELECTRO-CHEMICAL  CARBON
 CAPTURE, ALKALINITY ENHANCEMENT, MARINE PERMACULTURE, DEEP-OCEAN SEQUES-
 TRATION OF BIOMASS, AND COASTAL ENHANCED WEATHERING;
   D.  CONSTRUCTION  MATERIALS  AND  PRODUCTS,  THE  PRODUCTION  OF WHICH
 DIRECTLY CONTRIBUTE TO THE SEQUESTRATION  OF  CARBON  DIOXIDE  OR  OTHER
 GREENHOUSE GASES, INCLUDING MASS TIMBER; OR
   E.  DIRECT  AIR CARBON CAPTURE WITH DURABLE GEOLOGIC SEQUESTRATION, OR
 UTILIZATION IN THE  BUILT  ENVIRONMENT  INCLUDING  CONCRETE,  LONG-LIVED
 PLASTICS, CARBON FIBER, OR OTHER DURABLE GOODS.
 § 76-0107. BID PREFERENCES.
   THE  DEPARTMENT SHALL CREATE A SCORECARD TO EVALUATE THE BIDS RECEIVED
 BASED ON THE FOLLOWING FACTORS:
   1. PRICE PER TON;
   2. CDR PROJECT OCCURS WITHIN STATE OR  WATERS  WITHIN  FIFTY  NAUTICAL
 MILES OF THE STATE;
   3. SCALE POTENTIAL OF THE CDR PROCESS IN THE STATE, AND GENERALLY;
   4. DELIVERY TERM FOR THE PROPOSED CDR PROJECT;
   5.  CDR  PROJECT  IS PERFORMED BY A BIDDER THAT IS INCORPORATED, BASED
 IN, AND HAS STATE TAX LIABILITY IN THE STATE;
   6. DURABILITY OF CDR IN EXCESS OF ONE HUNDRED YEARS;
   7.  CONSERVATION  EFFICIENCY  IN  USE  OF  WATER,  LAND,  AND   ENERGY
 RESOURCES;
   8.  CDR  PROJECT  OFFERS SIGNIFICANT ECOLOGICAL OR ECOSYSTEM BENEFITS,
 AND DOES NOT CREATE SIGNIFICANT HARMS;
   9. CDR PROJECT BENEFITS  ONE  OR  MORE  DISADVANTAGED  COMMUNITIES  AS
 DEFINED IN SECTION 75-0101 OF THIS CHAPTER;
   10. CDR PROJECT GENERATES EMPLOYMENT WITHIN THE STATE; AND
   11.  CDR  PROJECT  IS OTHERWISE ASSESSED TO PROMOTE EQUITY OR ENVIRON-
 MENTAL JUSTICE WITHIN THE STATE.
 § 76-0109. ON-GOING BIDDER RESPONSIBILITIES.
   1. THE DEPARTMENT SHALL REQUIRE EACH BIDDER PROVIDE PERIODIC VERIFICA-
 TION FROM AN INDEPENDENT THIRD PARTY DEEMED SATISFACTORY BY THE  DEPART-
 MENT THAT:
   A.  THE  VOLUME OF CDR REMOVED FROM THE ATMOSPHERE AND STORED MEETS OR
 EXCEEDS THE AMOUNT PROVIDED IN THE BID; AND
   B. THERE HAS BEEN NO LEAKAGE OF CO2E  OR  MATERIAL  REDUCTION  IN  THE
 NUMBER OF YEARS OF CDR DURABILITY.
   2.  UPON  A FAILURE BY THE BIDDER TO PROVIDE THE VERIFICATION REQUIRED
 BY THE DEPARTMENT, THE  DEPARTMENT  MAY  TAKE  ACTION  TO  PENALIZE  THE
 BIDDER, INCLUDING, BUT NOT LIMITED TO:
   A.  LEVYING FINES OR PENALTIES AGAINST THE BIDDER TO RECOUP FUNDS PAID
 PURSUANT TO THE BID; OR
   B. REJECTION OF FUTURE BIDS BY THE BIDDER.
   3. SUBJECT ONLY TO THE DEFENSES SET FORTH IN SUBDIVISION FOUR OF  THIS
 SECTION, THE BIDDER, ITS SUCCESSORS, ASSIGNS, AND TRANSFEREES OF RESPON-
 SIBILITIES,  LIABILITIES,  RIGHTS OR ECONOMIC BENEFITS OF THE CDR, SHALL
 BE LIABLE FOR THE SOCIAL COST, AS DETERMINED BY THE DEPARTMENT  PURSUANT
 A. 8597                             6
 
 TO  SECTION 75-0113 OF THIS CHAPTER, OF ANY CO2E LEAKAGE OR REDUCTION IN
 CDR DURABILITY.
   4.  THERE  SHALL  BE  NO LIABILITY UNDER THIS SUBDIVISION FOR A PERSON
 OTHERWISE LIABLE WHO CAN ESTABLISH BY A PREPONDERANCE  OF  THE  EVIDENCE
 THAT  THE CO2E LEAKAGE OR REDUCTION IN CDR DURABILITY WERE CAUSED SOLELY
 BY:
   A. AN ACT OF GOD;
   B. AN ACT OF WAR; OR
   C. AN ACT OR OMISSION OF A THIRD PARTY OTHER THAN AN EMPLOYEE OR AGENT
 OF THE BIDDER.
 § 76-0111. REVERSE AUCTION FUNDING.
   FUNDING FOR THE AUTHORIZED FIVE YEAR REVERSE AUCTION PERIOD, BEGINNING
 IN THE YEAR TWO THOUSAND TWENTY-FIVE AND ENDING IN TWO THOUSAND  TWENTY-
 NINE,  SHALL  BE  DERIVED  ENTIRELY  FROM  STATE REVENUES THAT HAVE BEEN
 ACCRUED IN PRECEDING TAX YEARS FROM CERTAIN REINSTATED TAX  REVENUES  ON
 AVIATION  GASOLINE  WHICH IS IMPORTED OR CAUSED TO BE IMPORTED INTO THIS
 STATE BY A PETROLEUM BUSINESS WHICH IS REGISTERED UNDER ARTICLE TWELVE-A
 OF THE TAX LAW AS A DISTRIBUTOR OF  MOTOR  FUEL  OR  PRODUCED,  REFINED,
 MANUFACTURED OR COMPOUNDED IN THIS STATE BY SUCH A PETROLEUM BUSINESS.
 § 76-0113. CARBON DIOXIDE REMOVAL AND EQUITY SURVEY.
   1.  PRIOR  TO  THE  INITIATION  OF THE REVERSE AUCTION, THE DEPARTMENT
 SHALL PUBLISH A SURVEY OF  CDR  OPPORTUNITIES  WITHIN  THE  STATE.  SUCH
 SURVEY MUST INCLUDE, BUT MAY NOT BE LIMITED TO:
   A.  DATA  GATHERED  BY  THE DEPARTMENT PURSUANT TO CDR VERIFICATION AS
 REQUIRED BY SECTION 76-0109 OF THIS ARTICLE;
   B. REVIEW OF CDR PROCESSES IN NEW YORK STATE  WITH  0.1MT  OR  GREATER
 CURRENT SCALE POTENTIAL AND ONE-HUNDRED-YEAR OR GREATER DURABILITY, WITH
 A DISCUSSION FOR EACH OF WATER AND LAND-USE REQUIREMENTS, LCA, POTENTIAL
 HARMS,  AND  POTENTIAL  CO-BENEFITS, INCLUDING JOBS, INDUSTRIAL DEVELOP-
 MENT, ECOSYSTEM, AND ENVIRONMENTAL EQUITY AND SOCIAL JUSTICE; AND
   C.  REFERENCE  TO  ALL  PRIOR  REVERSE  AUCTION  AWARDS  AND  PROJECTS
 COMPLETED  IN  PREVIOUS  YEARS,  INCLUDING  ALL DATA RELATED TO EACH CDR
 PROCESS EMPLOYED IN EACH BID.
   2. THE  COMPLETION  OF  THE  SURVEY  SHALL  INCORPORATE  PARTICIPATORY
 RESEARCH  AND  DESIGN  METHODOLOGIES  AND  ACTIVITIES THAT AFFORD DIRECT
 ENGAGEMENT BETWEEN THE DEPARTMENT AND MEMBERS OF DISADVANTAGED AND ENVI-
 RONMENTAL JUSTICE COMMUNITIES  THROUGHOUT  THE  STATE.  SUCH  ACTIVITIES
 SHALL  BE  CARRIED  OUT  ON  A  REGIONAL BASIS AND WILL ENABLE COMMUNITY
 MEMBERS TO SOLICIT INFORMATION FROM THE DEPARTMENT CONCERNING THE OBJEC-
 TIVES, AND INTENDED BENEFITS AND OUTCOMES OF  THE  PROCUREMENT  PROGRAM;
 AND  TO  OFFER  DIRECT  COMMENT AND SUGGESTIONS RELATED TO THE PROGRAM'S
 DESIGN, IMPLEMENTATION AND SHARED COMMUNITY BENEFITS.
   3. PROVIDED THE STATE HAS REAUTHORIZED FUNDING OF THE REVERSE  AUCTION
 PURSUANT TO SECTION 76-0111 OF THIS ARTICLE, THE DEPARTMENT SHALL UPDATE
 THE SURVEY NO LESS THAN EVERY FIVE YEARS.
 § 76-0115. AUTHORITY AND COMPLIANCE.
   1.  NOTHING  IN  THIS  ARTICLE SHALL LIMIT THE EXISTING AUTHORITY OF A
 STATE ENTITY TO ADOPT AND IMPLEMENT GREENHOUSE GAS  EMISSIONS  REDUCTION
 MEASURES, INCLUDING CARBON DIOXIDE REMOVAL.
   2. NOTHING IN THIS ARTICLE SHALL RELIEVE ANY PERSON, ENTITY, OR PUBLIC
 AGENCY OF COMPLIANCE WITH OTHER APPLICABLE FEDERAL, STATE, OR LOCAL LAWS
 OR  REGULATIONS, INCLUDING STATE AIR AND WATER QUALITY REQUIREMENTS, AND
 OTHER REQUIREMENTS FOR PROTECTING PUBLIC HEALTH OR THE ENVIRONMENT.
   3. REVIEW UNDER THIS ACT MAY BE CONDUCTED IN A PROCEEDING UNDER  ARTI-
 CLE SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES AT THE INSTANCE OF
 ANY PERSON AGGRIEVED.
 A. 8597                             7
 
 § 76-0117. SEVERABILITY.
   IF  ANY WORD, PHRASE, CLAUSE, SENTENCE, PARAGRAPH, SECTION, OR PART OF
 THIS ARTICLE 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 WORD,
 PHRASE, CLAUSE, SENTENCE, PARAGRAPH, SECTION, OR PART  THEREOF  DIRECTLY
 INVOLVED  IN  THE  CONTROVERSY  IN  WHICH  SUCH JUDGMENT SHALL HAVE BEEN
 RENDERED.
   § 3. Subdivision (f) of section 301-e of the tax law is REPEALED.
   § 4. Paragraph 9 of subdivision (a) of section 1115 of the tax law  is
 REPEALED.
   § 5. This act shall take effect immediately.