Relates to the regional greenhouse initiative and the effect on electricity markets

3 Co-sponsors

• Thomas F. O'Mara
• Michael H. Ranzenhofer
• Patty Ritchie

BILL NUMBER:S6168

Title of bill

An act to amend the public service law, in relation to the regional greenhouse gas initiative

Purpose

To direct the Public Service Commission (PSC) to initiate a stakeholder process and promulgate rules aimed at addressing competitive imbalances between New York State generators who participate in the RGGI program and generators in non-RGGI states who do not.

Summary of provisions

Section 1: Sets forth the legislative intent

Section 2. Amends the Public Service Law by adding a new section that authorizes and directs the PSC to develop a mechanism aimed at eliminat- ing or minimizing competitive disadvantages those New York State genera- tors who participate in the RGGI program face when competing with out of state generators who do not participate, and thereby avoid the addi- tional cost impacts Further, this section sets a timeline for a stake- holder process on this subject, that requires implementation by July, 2016.

Section 3: Sets forth the effective date

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. While some of the benefits of these programs are well-known, the costs that they impose on generators in New York State are substantial. Further, the costs are slated to increase very soon due to efforts to lower the RGGI cap by 45%, which will raise pric- es in the RGGI auction and further increase costs for New York fossil fuel generators. The problem this bill addresses, is that there are states who neighbor New York (like Pennsylvania and New Jersey) who do not participate in RGGI, but still import power to our state. The fact that these carbon intensive generators do not face the costs associated with RGGI, but produce pollution that still impacts New York's air qual- ity and environmental health, creates an unlevel playing field and an unacceptable double standard. By directing, the PSC to initiate and complete a stakeholder process to address these inequities we are taking an important step to support New York's energy economy and the environ- ment.

Legislative history

This is a new bill

Fiscal implications

None

Effective date

This act shall take effect immediately.