Relates to carbon dioxide allowances for biomass-fired electric generating facilities under the carbon dioxide budget trading program

2 Co-sponsors

• Patty Ritchie
• Joseph A. Griffo

BILL NUMBER:S6499B

Title of bill

An act to amend the public service law, the public authorities law, and the environmental conservation law, in relation to biomass-fired electric generating facilities subject to the regional greenhouse gas initiative and the CO2 budget trading program

Purpose

To provide certain electric generators that convert from coal fired generation to biomass fired generation an exemption from participation in the State's CO2 trading and auction programs. Under the exemption, such electric generators shall not be required to obtain CO2 allowances for CO2 emissions that are attributable to the burning of biomass.

Summary of specific provisions

Section 1- Sets forth the legislative intent and lays out the benefits to the environment and the economy associated with biomass electric generation.

Section 2- Amends the public Service law to add a new section 73 that requires The Public Service Commission (PSC). The Department of Environ- mental Conservation (The Department) and NYSERDA to cooperate in the implementation of the provisions of this bill.

Section 3- Makes similar conforming changes in relation to coordination between NYSERDA, DEC and the PSC, this time to the Public Authorities Law.

Section 4- Waives the requirement for an electric generating facility that uses biomass for more than 50% of its heat input to obtain CO2 allowances under the RGGI program, provided that such generator previ- ously combusted coal as its primary fuel and that it is no longer authorized to combust coal.

Section 5-Sets forth the effective date.

Justification

Biomass facilities are an economic development engine across New York State that support more than 4,000 direct and indirect jobs. Collection of biomass fuel as well as transportation and generation all combine to make biomass facilities important to local economies. In addition, Biomass is a sustainable fuel, since the carbon that may be emitted by a facility is consistent with the natural life cycle of such material that may naturally degrade. Currently, new biomass plants are not required to participate in the RGGI program and to purchase carbon off sets, but plants that are converted from coal to biomass are. Since it is in the environmental interest of the residents of the state for New York to encourage cleaner burning fuels, and because coal fired plants could convert to biomass facilities and still maintain jobs and support local

taxing jurisdictions, it is important that such conversions also be exempted from the costs associated with purchasing carbon off-sets. Under this exemption, certain electric generators shall not be required to obtain CO2 allowances for CO2 emissions that are attributable to the burning of biomass. This bill accomplishes that goal in statue thereby providing certainty to generators who may be considering such conver- sions.

Fiscal implications

None.

Legislative history

New Bill

Effective date

This act shall take effect on the ninetieth day after it shall have become a law and shall apply to all control periods commencing on or after January 1, 2012; provided however, that effective immediately the department of environmental conservation is authorized and directed to amend, revise and/or repeal any rule, regulation or policy necessary for the implementation of this act on or before such effective date.