Enacts the climate change solutions program act

* provide for detailed programmatic and financial reporting requirements on the use of funds received from the auction of emissions allowances;

* establish a Greenhouse Gas Emissions Reduction Program within the Department of Environmental Conservation (DEC) that would make state assistance payments available, on a competitive basis, to municipalities and not-for-profit corporations to install cogeneration systems, purchase clean-fueled vehicles or retrofit existing vehicle fleets to become clean-fueled vehicles, and retrofit existing furnaces and boilers with high efficiency systems that meet certain specifications;

* establish a statutory Energy Efficiency Program within the New York State Energy Research and Development Authority (NYSERDA) that would make financial assistance available, on a competitive basis, to any electric utility customer to undertake electric energy efficiency projects, provided that priority would be given to projects that result in the highest electricity savings or are conducted in lower income communities;

* establish a statutory Renewable Energy Development Program within NYSERDA that would make financial assistance available, on a competitive basis, to any electric utility customer to install or operate technologies that convert energy sources such as solar, wind or tidal energy into electricity; and

* establish a Clean Air Technology Program within NYSERDA that would make state assistance payments available, on a competitive basis, to municipalities to retrofit vehicles with best available emission control devices.

Justification

Global climate change threatens the environment, natural resources and economy of New York State. In an effort to reduce its contribution to global warming, the state has led the way in developing RGGI, a nine state cap and trade program to stabilize and reduce carbon dioxide emissions from electric generating facilities. In New York, one hundred percent of its carbon dioxide emissions allowance budget will be auctioned for consumer benefit. Proceeds from these auctions should primarily be invested in energy efficiency initiatives, as well as programs that increase the state's investment in clean renewable

sources of energy and programs that help meet the state's other air quality goals.

Increased investment in energy efficiency will result in decreased local and statewide electricity demand and protect New Yorkers from the harmful effects of air pollution created by fossil fuel-fired power plants. These harmful effects include asthma attacks and premature deaths in seniors, increased levels of mercury contamination, destruction of our forest ecosystems by acid rain, as well as wide ranging negative effects associated with climate change.

In addition, investment in energy efficiency will drive down the cost of implementing the RGGI and its impacts on consumer energy bills. Estimates provided for the states implementing RGGI show that doubling energy efficiency spending would reduce annual household bills in the region by $66 in 2015 and by $109 in 2021.

Dedicating, these funds for the purposes outlined in this bill will ensure that New Yorkers realize the maximum public benefit from RGGI.

Prior legislative history

New bill.

Fiscal implications

Subject to appropriation.

Effective date

Immediately or on the same date as a chapter of the laws of 2009 creating climate change solutions fund, whichever is later.