Directs the New York State Energy Research and Development Authority to conduct an analysis of the potential impacts of participation in the Regional Greenhouse Gas Initiative by out of state generators

2 Co-sponsors

• Kevin S. Parker
• John L. Sampson

BILL NUMBER:S4886

Title of bill

An act directing the New York state energy research and development authority to conduct an analysis of the potential impacts of participation in the Regional Greenhouse Gas Initiative by out of state generators

Purpose or general idea of bill

To study the costs and benefits of the state's current programs associated with the regional greenhouse gas initiative and to analyze the feasibility, potential methodology and likely impacts of requiring out of state generators who export power to New York to participate in the program.

Summary of specific provisions

Section 1: Requires NYSERDA to issue a request for proposals for interested parties to submit bids to conduct a study on programs associated with the Regional Greenhouse Gas Initiative and lays out the parameters of the study which will include an analysis of the potential impacts of requiring out of state generators who export power to New York to participate in the program and also an examination of the costs and benefits of RGGI programs that are already being implemented.

Section 2: Requires submission of the study upon its completion to the Governor and legislative leaders by March 1, 2014.

Justification

Governor Pataki, began the process of forming the Regional Greenhouse Gas Initiative in 2003, and carbon auctions have been ongoing since 2008. The money from these programs is derived from the purchase of carbon off-sets by companies who produce emissions, and the money is used to fund several programs, including Green-Jobs Green New York and On-Bill recovery. These programs are laudable and reports are published on them each year, and yet, there is information that is not readily available about the impacts and potential costs of the program as it relates to job creation and potential impacts on ratepayers. This bill will allow an independent third party to study the impacts of the current program and report back to the legislature and the governor about the benefits and potential challenges created by the implementation of the program. The environmental benefits of the program are positive and well-known but it is important to fully understand the net impact on jobs, local tax base and on ratepayers from the implementation of the program thus far.

The study required in the bill also seeks an analysis of expanding the RGGI program to require out of state generators to participate in the carbon credit auction or pay a fee for exporting to the state or some other idea that would allow for a more level playing field. Currently, New York Generators have to pay additional expenses associated with RGGI but generators who export to the state from New Jersey and Pennsylvania (Non-RGGI States) do not. Some believe that this is creating an unlevel playing field and making it harder for our generators to compete and therefore putting jobs at risk. The

environmental benefits of the program may also be undercut, as dirtier forms of generation continue to operate in neighboring states and produce carbon that ultimately impacts the environment as well as the health of New Yorkers. This bill seeks a report from experts to determine whether requiring participation of out of State generators is a good idea, and also to recommend the most efficient way to implement such a program with the least impact on competitive markets.

Legislative history

This is a new bill

Fiscal implications

minimal fiscal impact to the state

Effective date

This act shall take effect immediately.