S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  1718--A
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 20, 2023
                                ___________
 
 Introduced  by M. of A. MITAYNES, CARROLL, FORREST, GALLAGHER, GONZALEZ-
   ROJAS, KELLES, MAMDANI, SEPTIMO, SIMON, REYES, EPSTEIN, ROZIC, BURGOS,
   MEEKS, RAGA, ANDERSON -- read once and referred to  the  Committee  on
   Environmental  Conservation  --  committee  discharged,  bill amended,
   ordered reprinted as amended and recommitted to said committee

 AN ACT to amend the  environmental  conservation  law,  in  relation  to
   establishing  an  indirect  source  review for certain warehouse oper-
   ations
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The environmental conservation law is amended by adding a
 new article 74 to read as follows:
                                ARTICLE 74
                          INDIRECT SOURCE REVIEW
 SECTION 74-0101. DEFINITIONS.
         74-0103. INDIRECT SOURCE REVIEW.
         74-0105. ZERO-EMISSIONS ZONES STUDY.
 § 74-0101. DEFINITIONS.
   AS USED IN THIS ARTICLE THE FOLLOWING TERMS SHALL HAVE  THE  FOLLOWING
 MEANINGS:
   1.  "HEAVY  DISTRIBUTION  WAREHOUSE" MEANS A FACILITY THAT FALLS UNDER
 ONE OF THE FOLLOWING CATEGORIES:
   (A) FULFILLMENT CENTER. A FACILITY WHOSE PRIMARY  PURPOSE  IS  STORAGE
 AND  DISTRIBUTION  OF E-COMMERCE GOODS TO CONSUMERS OR END-USERS, EITHER
 DIRECTLY OR THROUGH A PARCEL HUB.
   (B) PARCEL HUB. A LAST MILE FACILITY OR SIMILAR FACILITY WHOSE PRIMARY
 PURPOSE IS PROCESSING OR REDISTRIBUTION OF GOODS FOR  DELIVERY  DIRECTLY
 TO  CONSUMERS OR END-USERS, BY MOVING A SHIPMENT FROM ONE MODE OF TRANS-
 PORT TO A VEHICLE WITH A  RATED  CAPACITY  OF  LESS  THAN  TEN  THOUSAND
 POUNDS.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04869-03-3
 A. 1718--A                          2
              

 
   (C) PARCEL SORTING FACILITY. A FACILITY WHOSE PRIMARY PURPOSE IS SORT-
 ING  OR  REDISTRIBUTION  OF  GOODS FROM A FULFILLMENT CENTER TO A PARCEL
 HUB.
   2.  "QUALIFYING WAREHOUSE" MEANS ANY HEAVY DISTRIBUTION WAREHOUSE THAT
 IS FIFTY THOUSAND SQUARE FEET OR GREATER, OR WHICH IS OWNED OR  OPERATED
 BY ANY PERSON WHO IN AGGREGATE OWNS OR OPERATES FIVE HUNDRED THOUSAND OR
 MORE OF HEAVY DISTRIBUTION WAREHOUSE SPACE IN THE STATE.
   3.  "WAREHOUSE  OPERATOR"  MEANS  ANY  ENTITY THAT CONDUCTS DAY-TO-DAY
 OPERATIONS AT  A  HEAVY  DISTRIBUTION  WAREHOUSE,  INCLUDING  OPERATIONS
 CONDUCTED THROUGH THE USE OF THIRD-PARTY CONTRACTORS.
   4.  "MAJOR  MODIFICATION" SHALL HAVE THE SAME MEANING AS IT DOES IN 40
 CFR 52.21(B)(2).
   5. "MOBILE SOURCE EMISSIONS" SHALL HAVE THE SAME MEANING AS IT DOES IN
 40 CFR § 51.491.
 § 74-0103. INDIRECT SOURCE REVIEW.
   1. NO LATER THAN TWELVE  MONTHS  AFTER  THE  EFFECTIVE  DATE  OF  THIS
 SECTION, THE DEPARTMENT SHALL PROMULGATE RULES AND REGULATIONS PROVIDING
 FOR   THE  FACILITY-BY-FACILITY  REVIEW  OF  QUALIFYING  WAREHOUSES  AND
 ADOPTION OF MEASURES TO REDUCE AIR POLLUTION ASSOCIATED  WITH  EMISSIONS
 RELATED  TO  QUALIFYING  WAREHOUSE  OPERATIONS,  INCLUDING MOBILE SOURCE
 EMISSIONS.
   2. IN PROMULGATING SUCH RULES AND REGULATIONS,  THE  DEPARTMENT  SHALL
 CONSIDER  A  VARIETY  OF MEASURES INCLUDING BUT NOT LIMITED TO REQUIRING
 ALL WAREHOUSE OPERATORS TO IMPLEMENT  AN  AIR  EMISSIONS  REDUCTION  AND
 MITIGATION  PLAN  DEVELOPED  OR  APPROVED  BY THE DEPARTMENT; CREATING A
 POINTS SYSTEM UNDER WHICH WAREHOUSE OPERATORS MUST GAIN A CERTAIN NUMBER
 OF POINTS, BASED ON THE AMOUNT OF TRUCK TRAFFIC THAT RESULTS FROM  THEIR
 OPERATIONS,  THROUGH  MITIGATION  MEASURES  SUCH  AS ACQUIRING AND USING
 ZERO-EMISSIONS VEHICLES, INSTALLING AND USING ON-SITE  ELECTRIC  VEHICLE
 CHARGING  EQUIPMENT, USING ALTERNATIVES TO TRUCK OR VAN TRIPS FOR INCOM-
 ING OR OUTGOING TRIPS, AND/OR INSTALLING SOLAR ELECTRIC POWER GENERATION
 AND BATTERY STORAGE SYSTEMS; AND REQUIRING ENHANCED MITIGATION  MEASURES
 FOR WAREHOUSES LOCATED NEAR SENSITIVE RECEPTORS INCLUDING BUT NOT LIMIT-
 ED  TO  SCHOOLS, DAYCARES, PLAYGROUNDS, PARKS, HOSPITALS, SENIOR CENTERS
 OR NURSING HOMES AND DISADVANTAGED COMMUNITIES  AS  DEFINED  BY  SECTION
 75-0101  OF THIS CHAPTER.  WHEN CONSIDERING ALTERNATIVES TO TRUCK OR VAN
 TRIPS FOR INCOMING  OR  OUTGOING  TRIPS,  THE  WAREHOUSE  OPERATOR  WILL
 CONSULT  IMPACTED AND DISPLACED EMPLOYEES IN SELECTING AN ALTERNATIVE TO
 TRUCK OR VAN TRIPS AND WILL ONLY UTILIZE SUCH ALTERNATIVE UPON AGREEMENT
 WITH THE IMPACTED AND DISPLACED  EMPLOYEES.  IN  ADDITION  TO  REQUIRING
 AGREEMENT  FROM THE IMPACTED AND/OR DISPLACED EMPLOYEES, IF EMPLOYEES IN
 THE WAREHOUSE HAVE AN EXCLUSIVE BARGAINING UNIT REPRESENTATIVE  AND  THE
 BARGAINING  UNIT  OR  TERMS  OF  THE  COLLECTIVE BARGAINING AGREEMENT IS
 IMPACTED, THE WAREHOUSE OPERATOR WILL BE REQUIRED TO CONSULT AND  OBTAIN
 AGREEMENT  FROM  SUCH  REPRESENTATIVE,  IN  WRITING,  PRIOR TO UTILIZING
 ALTERNATIVES.
   3. (A) THE DEPARTMENT SHALL REQUIRE ANY PROPOSED  NEW  DEVELOPMENT  OR
 MAJOR  MODIFICATION  OF  A QUALIFYING WAREHOUSE TO FIRST OBTAIN A PERMIT
 DEMONSTRATING  THAT  ANY   ADDITIONAL   TRAFFIC   RESULTING   FROM   ITS
 CONSTRUCTION  AND  OPERATION  WILL NOT RESULT IN A VIOLATION OF NATIONAL
 AMBIENT AIR QUALITY STANDARDS ESTABLISHED BY THE  FEDERAL  ENVIRONMENTAL
 PROTECTION AGENCY OR, IF A VIOLATION ALREADY EXISTS, WILL NOT EXACERBATE
 SUCH  VIOLATION.    IN  ADDITION,  NEWLY CONSTRUCTED FACILITIES SHALL BE
 REQUIRED TO DEMONSTRATE (I) THE OPERATOR HAS NOT BEEN HELD BY AN  ADMIN-
 ISTRATIVE  AGENCY  OR COURT OF COMPETENT JURISDICTION TO BE IN VIOLATION
 OF ANY FEDERAL, STATE OR LOCAL AIR QUALITY STANDARDS IN  THE  TWO  YEARS
 A. 1718--A                          3
 
 PRIOR  TO  THE DATE OF APPLICATION, AND (II) THE PROPOSED FACILITY MEETS
 LEED PLATINUM STANDARDS.
   (B)  THE  DEPARTMENT  SHALL  REQUIRE  APPLICANTS TO SUBMIT INFORMATION
 NECESSARY TO MAKE SUCH A DETERMINATION PURSUANT TO PARAGRAPH (A) OF THIS
 SUBDIVISION, INCLUDING BUT NOT LIMITED TO, PROJECTED AVERAGE  NUMBER  OF
 DAILY  TRUCK TRIPS AND PRIMARY ROUTES TO THE FACILITY, A STUDY OF POTEN-
 TIAL TRAFFIC AND CONGESTION IMPACTS,  IDENTIFICATION  OF  ALL  SENSITIVE
 RECEPTORS, INCLUDING BUT NOT LIMITED TO, SCHOOLS, DAYCARES, PLAYGROUNDS,
 PARKS,  HOSPITALS,  SENIOR  CENTERS  OR  NURSING HOMES AND DISADVANTAGED
 COMMUNITIES AS DEFINED BY SECTION 75-0101  OF  THIS  CHAPTER,  NEAR  THE
 PROPOSED  WAREHOUSE  OR  NEAR  THE  PRIMARY TRUCK ROUTES, AND AN INITIAL
 EMISSIONS REDUCTION AND MITIGATION PLAN AS PROVIDED FOR  IN  SUBDIVISION
 TWO OF THIS SECTION.
   4.  THE  DEPARTMENT  SHALL  ESTABLISH ONGOING MONITORING AND REPORTING
 REQUIREMENTS FOR WAREHOUSE OPERATORS.  SUCH MONITORING SHALL INCLUDE BUT
 NOT BE LIMITED TO PERIODIC DESKTOP AND FIELD  AUDITS;  CONTACTING  WARE-
 HOUSE  OWNERS AND OPERATORS TO REQUEST FURTHER DOCUMENTATION OR CLARIFI-
 CATION ON SUBMITTED REPORTS; AND CONDUCTING FIELD VISITS  OF  THE  WARE-
 HOUSE  FACILITIES  AT ANY TIME DURING REGULAR BUSINESS HOURS TO VERIFY A
 FACILITY IS FOLLOWING RECORDKEEPING REQUIREMENTS  AND  OTHER  APPLICABLE
 REQUIREMENTS.    ALL  REPORTS SHALL BE MADE ACCESSIBLE TO THE PUBLIC, IN
 FULL AND UNREDACTED, AND POSTED ON A PUBLICLY AVAILABLE WEBSITE. REPORT-
 ING REQUIREMENTS SHALL INCLUDE, BUT NOT BE LIMITED TO, ANNUAL  REPORTING
 OF:
   (A)  THE AVERAGE DAILY NUMBER OF INBOUND AND OUTBOUND VEHICLE TRIPS BY
 VEHICLE WEIGHT AND CLASS, AND BY TIME OF DAY AND DAY OF THE WEEK;
   (B) THE AVERAGE DAILY VEHICLE MILES TRAVELED FOR ALL  VEHICLES  MAKING
 INBOUND AND OUTBOUND TRIPS TO AND FROM THE QUALIFYING WAREHOUSE;
   (C) THE AVERAGE DAILY VEHICLE MILES TRAVELED AND NUMBER OF INBOUND AND
 OUTBOUND TRIPS FOR ALTERNATIVE MODES OF FREIGHT;
   (D) A HEAT MAP OF THE FREQUENCY DATA FOR TRIP DESTINATIONS;
   (E)  THE  NUMBER OF JOBS AT THE FACILITY, INCLUDING DRIVERS AND OTHERS
 EMPLOYED BY THIRD-PARTY CONTRACTORS, WITH A BREAKDOWN OF  PERCENTAGE  OF
 PART-TIME  AND  FULL-TIME  EMPLOYEES, INDEPENDENT CONTRACTORS, UNIONIZED
 AND NON-UNION EMPLOYEES;
   (F) THE PERCENTAGE OF VEHICLES USED, SPECIFYING ON-ROAD  VEHICLES  AND
 OFF-ROAD  VEHICLES  AS  WELL  AS WEIGHT AND VEHICLE CLASS, THAT ARE ZERO
 EMISSIONS;
   (G) THE NUMBER OF ELECTRIC VEHICLE  CHARGING  STATIONS  INSTALLED  AND
 ACTUAL USAGE;
   (H)  THE  NUMBER  OF  HYDROGEN  FUELING  STATIONS INSTALLED AND ACTUAL
 USAGE;
   (I)  THE  NUMBER  OF  ON-SITE  RENEWABLE  ENERGY  GENERATION   SYSTEMS
 INSTALLED;
   (J)  THE  NUMBER  OF  VEHICLES  USED TO DELIVER FROM THE SITE THAT ARE
 OWNED BY THE OPERATOR BUT LEASED TO A THIRD-PARTY, AND THE PROPORTION OF
 LEASED VEHICLES VIS A VIS VEHICLES OWNED BY THE OPERATOR;
   (K) THE IDENTITY OF SUBCONTRACTORS WHO CONDUCT MORE THAN 10% OF  TOTAL
 DELIVERY VEHICLE TRIPS FROM THE SITE, INCLUDING THE ENTITY NAME, PRINCI-
 PAL OFFICERS, BUSINESS ADDRESS AND CONTACT INFORMATION, AND TOTAL NUMBER
 OF EMPLOYEES; AND
   (L)  ANY  OTHER  INFORMATION  NECESSARY  TO  EFFECTIVELY IMPLEMENT AND
 ENFORCE ANY RULE OR REGULATION PROMULGATED PURSUANT TO THIS SECTION.
   5. THE DEPARTMENT SHALL IMPOSE AN ANNUAL REGISTRATION  FEE  FOR  WARE-
 HOUSE  OPERATORS, AND INSTITUTE ADDITIONAL FEES OF FIFTY DOLLARS PER DAY
 THAT A VIOLATION EXISTS FOR WAREHOUSE OPERATORS THAT FAIL TO  SUBMIT  AN
 A. 1718--A                          4
 
 APPROVED  PLAN  PURSUANT TO SUBDIVISION TWO OF THIS SECTION OR TO OTHER-
 WISE COMPLY WITH ANY RULE OR REGULATION  PROMULGATED  PURSUANT  TO  THIS
 SECTION.  SUCH  FEES ARE OWED BY NO MORE THAN THIRTY CALENDAR DAYS AFTER
 JANUARY FIRST OF EACH YEAR.
 § 74-0105. ZERO-EMISSIONS ZONES STUDY.
   WITHIN  TWELVE  MONTHS  OF  THE  EFFECTIVE  DATE  OF THIS SECTION, THE
 DEPARTMENT SHALL COMPLETE A STUDY ON THE FEASIBILITY, BENEFITS AND COSTS
 OF IMPLEMENTING LOW- AND ZERO-EMISSIONS DESIGNATED ZONES FOR MEDIUM- AND
 HEAVY-DUTY VEHICLES AS DEFINED IN SUBDIVISION ONE OF SECTION 19-0320  OF
 THIS  CHAPTER WITHIN THE STATE THAT ARE DESIGNED TO LOWER AIR POLLUTION,
 CONGESTION, GREENHOUSE GAS EMISSIONS, AND NOISE, AND TO INCREASE SAFETY.
 THE STUDY SHALL INCLUDE RECOMMENDATIONS FOR IMPLEMENTATION OF  LOW-  AND
 ZERO-EMISSIONS  ZONES  AT  THE  STATE  AND LOCAL LEVEL AND SHALL BE MADE
 AVAILABLE TO THE PUBLIC AND POSTED ON A PUBLICLY AVAILABLE  WEBSITE.  IN
 CONDUCTING THE STUDY, THE DEPARTMENT SHALL CONSIDER:
   1. CREATION OF ZONES RESTRICTING DELIVERIES TO ZERO-EMISSIONS DELIVERY
 VEHICLES ONLY;
   2.  CREATION  OF  ZONES  REQUIRING  DELIVERY  VEHICLES TO MEET CERTAIN
 STRINGENT EMISSIONS STANDARDS;
   3. CREATION OF ZONES REQUIRING A  FEE  FOR  ENTRY  FOR  DIESEL-POWERED
 MEDIUM- AND HEAVY-DUTY VEHICLES;
   4.  PRIORITIZATION  OF  LOW- AND ZERO-EMISSIONS ZONES WITHIN DISADVAN-
 TAGED COMMUNITIES IDENTIFIED UNDER ARTICLE SEVENTY-FIVE OF THIS CHAPTER;
 NONATTAINMENT ZONES UNDER THE NATIONAL AMBIENT AIR QUALITY STANDARDS SET
 BY THE FEDERAL ENVIRONMENTAL PROTECTION AGENCY IN 42  U.S.C.  7401;  AND
 OTHER  VULNERABLE  AREAS INCLUDING AREAS PROXIMATE TO SCHOOLS, DAYCARES,
 PLAYGROUNDS, PARKS, HOSPITALS, SENIOR  CENTERS  OR  NURSING  HOMES,  AND
 DISADVANTAGED COMMUNITIES AS DEFINED BY SECTION 75-0101 OF THIS CHAPTER;
   5.  INCENTIVES  AND  ENFORCEABLE  MEASURES FOR LOW- AND ZERO-EMISSIONS
 ZONES, INCLUDING FEES;
   6. MEASURES TO ENSURE REINVESTMENT OF ANY REVENUES FROM FEES IN PUBLIC
 TRANSIT AND ZERO-EMISSIONS TRANSPORTATION INFRASTRUCTURE;
   7. EQUITY CONSIDERATIONS, INCLUDING PREVENTING  UNINTENDED  REGRESSIVE
 COST IMPACTS FOR LOW- AND MODERATE-INCOME NEW YORKERS; AND
   8. BARRIERS TO IMPLEMENTING LOW- AND ZERO-EMISSIONS ZONES IN THE STATE
 AND RECOMMENDATIONS FOR OVERCOMING SUCH BARRIERS.
   § 2. This act shall take effect immediately.