Enacts the climate change solutions program act

Summary of provisions

This bill would amend Article 19 of the Environmental Conservation Law by adding a new Title 13 to create the Climate Change Solutions Program Act, which would:

* 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;

* 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;

* Establish the Climate Change Solutions Fund in the state finance law and the following accounts within the Fund: a climate change transfer account; a greenhouse gas emission reduction account; an energy efficiency account; a renewable enemy development account; and a clean air account;

* Authorize monies in the fund to be spent pursuant to a program established by a new title II of article 19 of the environmental conservation law. Revenues raised from the auction of any emissions allowances by the Commissioner of the Department of Environmental Conservation (DEC) would be deposited into the Climate Change Solutions Fund;

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.

This bill establishes a special revenue fund within the state finance law to receive the proceeds of the auction and dedicates the funds for specific environmental purposes established in a new title 11 of the environmental conservation law.

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.

Fiscal implications

To be determined.

Effective date

This act shall take effect immediately