Authorizes NYSERDA to expend proceeds collected from the auction at sale of carbon dioxide emission allowances

Title of bill

An act to authorize NYSERDA to expend proceeds collected from the auction at sale of carbon dioxide emission allowances

Purpose

To authorize NYSERDA to expend proceeds collected from the auction at sale of carbon dioxide emission allowances.

Summary of provisions

Section 1 authorizes and directs NYSERDA to expend an amount not to exceed $100 million from proceeds collected from the auction at sale of carbon dioxide emission allowances allocation by the Department of Environmental Conservation on or before March 31, 2017 for the state fiscal year commencing April 1, 2016, pending a final order and determination by the Public Service Commission. This would provide financial support for the benefit of the electric system and maintain the viability of certain nuclear power plants that demonstrate the lack of financial viability absent additional financial support.

Section 2 is the effective date.

Justification

In November of 2015, the Entergy Corporation, owners and operators of the FitzPatrick Nuclear Facility, announced that it would shut down the nuclear plant after the reactor runs out of fuel. However the facility is vital to the economic stability of the communities in Oswego County and central New York, in which the facility is located, providing over 600 jobs for the residents of the area.

This bill authorizes the New York State Research and Development Authority (NYSERDA) to use Regional Greenhouse Gas Initiative (RGGI) funds from the sale of carbon dioxide emission allowances in order to temporarily fund an expedited program to provide financial support for the benefit of the electric system. Specifically, this measure would maintain the viability of certain nuclear power plants that are on the verge of closure. In addition, this temporary program would allow Fitzpatrick to continue to operate until tier 3 of the Clean Energy Standard is implemented, which would make Fitzpatrick, as well as the rest of the state's nuclear fleet, financially stable and able to continue operation until each plant's license expires.

The benefits that our nuclear facilities bring to our State in terms of jobs, and clean, high-quality power is without dispute. According to the PSC, "Loss of these facilities in the short-term would undermine progress towards meeting the State's clean energy goals. Ideally, these facilities should be maintained as viable until they can be replaced with new, long-term clean energy generation facilities or supplanted by energy efficiency achievements."

In Oswego, the FitzPatrick facility is a major employer and the effect of its closure will be felt by hundreds of hardworking employees and their families, as well as taxpayers, small businesses and communities across Central New York. To date, the FitzPatrick plant not only supports 600 well-paying jobs, it generates an annual $18 million in property tax revenue, and has an overall impact of $500 million on the local economy every year. The loss of the FitzPatrick plant would have a devastating effect on this region and continued operation of this the plant until its license expires is essential.

Legislative history

New Bill.

Fiscal implications

To be determined.

Effective date

This act shall take effect immediately.