Bill Text: NY A04309 | 2017-2018 | General Assembly | Introduced
Bill Title: Relates to the regional greenhouse initiative and the effect on electricity markets.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2018-01-03 - referred to energy [A04309 Detail]
Download: New_York-2017-A04309-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 4309 2017-2018 Regular Sessions IN ASSEMBLY February 2, 2017 ___________ Introduced by M. of A. QUART -- Multi-Sponsored by -- M. of A. MOSLEY -- read once and referred to the Committee on Energy AN ACT to amend the public service law, in relation to the regional greenhouse gas initiative The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The public service law is amended by adding a new section 2 77-a to read as follows: 3 § 77-a. Legislative intent. The legislature hereby finds and declares 4 that it is in the best public policy interests of the state, its busi- 5 nesses and its citizens to ensure that, to the greatest extent possible, 6 the letter and spirit of its environmental regulations aimed at reducing 7 carbon dioxide emissions and improving air quality under the regional 8 greenhouse gas initiative (RGGI), established by regulation of the 9 department of environmental conservation, are enforced for any generator 10 who does business in the New York state energy market. 11 This policy change is necessary because states that surround New York 12 that do not participate in RGGI, but who do export power to New York 13 state, have a distinct competitive advantage over in-state power genera- 14 tors. While the goals of the RGGI program are laudable, in-state fossil 15 fuel generators are experiencing significant increases in their costs as 16 a result of the need to buy carbon dioxide emission allowances in the 17 RGGI auction, established by regulation of the New York state energy and 18 research development authority. However, out-of-state fossil fuel gener- 19 ators in non-RGGI states may use the same exact fuel and produce the 20 greater emissions associated with that fuel, but are still able to 21 export power to New York at a cheaper price because they are not subject 22 to the costs associated with RGGI. This state of affairs hurts in-state 23 power generators, threatens jobs and encourages the importation of 24 pollution intensive power from other states. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD08923-01-7A. 4309 2 1 The legislature further declares that it is in the best economic and 2 environmental interests of the state to adopt policies that support job 3 retention and creation in the power generation sector in the state of 4 New York, and to seek to limit pollution and environmental degradation 5 whether it emanates from within the state or from another state. The 6 commission working with the New York state energy research and develop- 7 ment authority and the federally designated bulk system operator, are 8 the state entities with the expertise and authority to rectify this 9 problem through appropriate regulatory activity. 10 Therefore, this legislation directs the commission to initiate a 11 stakeholder process, consistent with section seventy-seven-b of this 12 article, with the goal of the commission issuing an order aimed at elim- 13 inating any unfair financial or environmental advantage that an out-of- 14 state power generator may enjoy because the state in which it is located 15 does not participate in the RGGI program. 16 § 2. The public service law is amended by adding a new section 77-b to 17 read as follows: 18 § 77-b. Regional greenhouse gas initiative; effect on electricity 19 markets. 1. The commission is hereby authorized and directed to develop 20 a mechanism for the purpose of eliminating, or minimizing to the great- 21 est extent practicable, the competitive advantages in the state's elec- 22 tricity markets that out-of-state power generators have over in-state 23 power generators due to New York state's participation in the regional 24 greenhouse gas initiative, established by regulation of the New York 25 state department of environmental conservation. Such mechanism shall be 26 developed pursuant to a stakeholder process through a proceeding to be 27 established by the commission within one month of the enactment of this 28 section. The commission may, in its discretion, consult with the New 29 York state energy research and development authority and the federally 30 designated bulk system operator serving New York state's electric system 31 in developing such mechanism. Within six months of the commission 32 having established a proceeding pursuant to this section, the department 33 shall issue a report, based upon the stakeholder process in such 34 proceeding, that describes the mechanism, its function, its positive 35 attributes, and any of its anticipated negative consequences, as well as 36 how those consequences could be minimized or mitigated. Such report 37 shall be provided for public stakeholder review and comment during a 38 three month period. Within one month of completing the public stake- 39 holder review and comment period on such report, the commission shall 40 revise such mechanism, as needed and taking into account such public 41 stakeholder comments, as the commission deems to be in the public inter- 42 est and consistent with the legislative intent expressed pursuant to 43 section seventy-seven-a of this article. Within three months of such 44 mechanism having been revised, as needed, and made available to stake- 45 holders in such proceeding, the commission shall issue an order imple- 46 menting such mechanism no later than July first, two thousand twenty. 47 2. For the purposes of this section and section seventy-seven-a of 48 this article, the following terms shall have the following meanings: 49 a. "Competitive advantage" shall mean any advantage or benefit, finan- 50 cial or otherwise, that exists for an out-of-state power generator in 51 connection with the imposition of the requirements of the regional 52 greenhouse gas initiative, established by regulation of the New York 53 state department of environmental conservation, on in-state power gener- 54 ators. A "competitive advantage" may include, among other things, 55 avoided costs such as infrastructure improvements, taxes, penalties,A. 4309 3 1 costs of environmental compliance, and administrative and reporting 2 costs. 3 b. "In-state power generator" shall mean a power generator physically 4 located in New York state. 5 c. "Out-of-state power generator" shall mean a power generator phys- 6 ically located in a state or province that does not participate in the 7 regional greenhouse gas initiative, established by regulation of the New 8 York state department of environmental conservation, that is selling 9 power in New York state. 10 § 3. This act shall take effect immediately.
