Bill Text: NY S02127 | 2023-2024 | General Assembly | Amended


Bill Title: Establishes an indirect source review for heavy distribution warehouse operations; requires the department of environmental conservation to conduct a study regarding zero-emissions zones.

Spectrum: Partisan Bill (Democrat 14-0)

Status: (Engrossed) 2024-06-05 - referred to environmental conservation [S02127 Detail]

Download: New_York-2023-S02127-Amended.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                         2127--C

                               2023-2024 Regular Sessions

                    IN SENATE

                                    January 18, 2023
                                       ___________

        Introduced  by Sens. GIANARIS, BRISPORT, FERNANDEZ, GONZALEZ, GOUNARDES,
          HARCKHAM, HINCHEY, HOYLMAN-SIGAL, KRUEGER, MAY, MYRIE, SALAZAR, SKOUF-
          IS, WEBB -- read twice and ordered printed, and  when  printed  to  be
          committed  to the Committee on Environmental Conservation -- committee
          discharged, bill amended, ordered reprinted as amended and recommitted
          to said committee -- recommitted to  the  Committee  on  Environmental
          Conservation  in  accordance  with  Senate Rule 6, sec. 8 -- committee
          discharged, bill amended, ordered reprinted as amended and recommitted
          to said committee  --  reported  favorably  from  said  committee  and
          committed  to  the  Committee on Finance -- committee discharged, bill
          amended, ordered reprinted as amended and recommitted to said  commit-
          tee

        AN  ACT  to  amend  the  environmental  conservation law, in relation to
          establishing an indirect source review  for  certain  warehouse  oper-
          ations

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. The environmental conservation law is amended by  adding  a
     2  new section 19-0333 to read as follows:
     3  § 19-0333. Indirect source review for heavy distribution warehouses.
     4    1.  As used in this section the following terms shall have the follow-
     5  ing meanings:
     6    a. "Affiliate" means, with respect to any specified person,  a  person
     7  that  directly,  or  indirectly  through  one  or  more  intermediaries,
     8  controls, is controlled by, or is under common control with such person.
     9    b. "Control", including the terms "controlling", "controlled  by"  and
    10  "under common control with", means the possession, directly or indirect-
    11  ly, of the power to direct or cause the direction of (1) the  management
    12  and policies of a person, (2) the operation of a person, or (3) substan-
    13  tially  all  of the assets of a person, whether through the ownership of
    14  voting securities, by contract,  or  otherwise.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04869-08-4

        S. 2127--C                          2

     1    c.  "Heavy  distribution  warehouse" means a facility that falls under
     2  one or more of the following categories:
     3    (1)  Fulfillment  center.  A facility whose primary purpose is storage
     4  and distribution of goods to consumers or end-users, either directly  or
     5  through a parcel hub.
     6    (2) Parcel hub. A last mile facility or similar facility whose primary
     7  purpose  is  processing or redistribution of goods for delivery directly
     8  to consumers or end-users, by moving a shipment from one mode of  trans-
     9  port  to  a  vehicle  with  a  rated  capacity of less than ten thousand
    10  pounds.
    11    (3) Parcel sorting facility. A facility whose primary purpose is sort-
    12  ing or redistribution of goods from a fulfillment  center  to  a  parcel
    13  hub.
    14    d.  "Qualifying warehouse" means any heavy distribution warehouse that
    15  is  fifty  thousand  square  feet  or  greater,  whether  as  originally
    16  constructed or as modified, or which is owned or operated by any person,
    17  including for such purposes all affiliates of such person, who in aggre-
    18  gate owns or operates five hundred thousand or more square feet of heavy
    19  distribution warehouse space in the state.
    20    e. "Warehouse  modification" means a modification to a warehouse which
    21  adds  additional  warehouse floor space that may be used for warehousing
    22  activities, or a change in operations of a warehouse which is likely  to
    23  result in a significant increase in air pollution.
    24    f.  "Warehouse  operator"  means  any  entity that conducts day-to-day
    25  operations at  a  heavy  distribution  warehouse,  including  operations
    26  conducted  through  the  use of third-party contractors. For purposes of
    27  clause (i) of subparagraph one of paragraph c of subdivision two of this
    28  section, warehouse operator shall include affiliates of  such  warehouse
    29  operator.
    30    2.  a.  No later than eighteen months after the effective date of this
    31  section, the department shall adopt a program providing for the  facili-
    32  ty-by-facility  review of qualifying warehouses and adoption of measures
    33  to reduce air pollution associated with qualifying warehouse operations,
    34  including, in a manner not inconsistent with the regulation of  indirect
    35  sources  of  pollution  contemplated  by  42 U.S.C. § 7410(a)(5), mobile
    36  sources of pollution, and shall promulgate  any  appropriate  rules  and
    37  regulations in connection therewith.
    38    b.  (1) In adopting such program and promulgating such rules and regu-
    39  lations, the department shall consider a variety of  measures  including
    40  but not limited to requiring all warehouse operators to implement an air
    41  pollution  reduction  and  mitigation  plan developed or approved by the
    42  department; creating a points system  under  which  warehouse  operators
    43  must  gain  a  certain  number of points, based on the amount of traffic
    44  that results from their operations, through mitigation measures such  as
    45  acquiring  and  using  zero-emissions  vehicles,  installing  and  using
    46  on-site electric vehicle charging equipment, using alternatives to truck
    47  or van trips for incoming or outgoing  trips,  and/or  installing  solar
    48  electric  power  generation  and  battery storage systems; and requiring
    49  enhanced mitigation measures  for  qualifying  warehouses  located  near
    50  sensitive  receptors  including  but  not  limited to schools, daycares,
    51  playgrounds, parks, hospitals,  senior  centers  or  nursing  homes  and
    52  disadvantaged  communities  as  defined  in  subdivision five of section
    53  75-0101 of this chapter.
    54    (2) Such rules and regulations shall provide  that,  when  considering
    55  alternatives  to  truck or van trips for incoming or outgoing trips, the
    56  warehouse operator shall, no less than forty-five and no more than nine-

        S. 2127--C                          3

     1  ty days prior to implementation of  such  alternative,  inform  impacted
     2  employees,  in  writing,  of the proposed change. The warehouse operator
     3  shall maintain a record of having provided written  notice  to  impacted
     4  employees. The written notice shall include, at minimum: descriptions of
     5  the vehicles and equipment to be used; anticipated physical requirements
     6  of  operation of such vehicles and equipment; anticipated date of imple-
     7  mentation; and instructions for training and application for transfer to
     8  those positions.  In addition to the foregoing notice  requirements,  if
     9  employees  in  the warehouse have an exclusive bargaining unit represen-
    10  tative, the warehouse operator will certify that such representative has
    11  agreed in writing to any operational changes that impact  the  scope  of
    12  the  bargaining  unit  or bargained-for terms of a collective bargaining
    13  agreement then in place, prior to utilizing alternatives.
    14    c. (1) Under the program, the department shall  require  any  proposed
    15  new  development  of a qualifying warehouse, modification of an existing
    16  facility which would result in the facility  constituting  a  qualifying
    17  warehouse, or warehouse modification of a qualifying warehouse, to first
    18  obtain a permit demonstrating that any additional traffic resulting from
    19  construction and operation will not result in a violation of one or more
    20  national  ambient air quality standards established by the federal envi-
    21  ronmental protection agency or, if a violation already exists, will  not
    22  exacerbate such violation, as determined in a manner consistent with the
    23  state  implementation  plan.  In  addition, newly constructed qualifying
    24  warehouses shall be required to demonstrate that (i) the warehouse oper-
    25  ator has not been held by an administrative agency or court of competent
    26  jurisdiction to be in violation of any indirect source rule which is not
    27  inconsistent with  the  regulation  of  indirect  sources  of  pollution
    28  contemplated  by  42  U.S.C.  §  7410(a)(5),  including pursuant to this
    29  section, or any other federal, state  or  local  air  quality  standards
    30  related  to its logistics operations, in the two years prior to the date
    31  of application, and (ii) the proposed qualifying  warehouse  meets  LEED
    32  silver,  gold or platinum standards, or a functionally equivalent stand-
    33  ard.
    34    (2) The department shall  require  applicants  to  submit  information
    35  necessary  to  make such a determination pursuant to subparagraph one of
    36  this paragraph, including but not limited to, projected  average  number
    37  of  daily  vehicle  trips and primary routes to the facility, a study of
    38  potential traffic and congestion impacts, identification of  all  sensi-
    39  tive  receptors,  including but not limited to, schools, daycares, play-
    40  grounds, parks, hospitals, senior centers or nursing homes and disadvan-
    41  taged communities as defined by section 75-0101 of  this  chapter,  near
    42  the  proposed  warehouse  or  near  the  primary  vehicle routes, and an
    43  initial air pollution reduction and mitigation plan as provided  for  in
    44  paragraph b of this subdivision.
    45    d. Under the program the department shall establish ongoing monitoring
    46  and  reporting  requirements  for qualifying warehouse operators.   Such
    47  monitoring shall include but not be  limited  to  periodic  desktop  and
    48  field  audits;  contacting  warehouse  owners and warehouse operators to
    49  request further documentation or clarification on submitted reports; and
    50  conducting field visits of the warehouse facilities during regular busi-
    51  ness hours to verify a facility is  following  recordkeeping  and  other
    52  applicable  requirements.    All reports shall be made accessible to the
    53  public, in full and unredacted except to the extent  necessary  to  keep
    54  personal  information  confidential,  and posted on a publicly available
    55  website. Reporting requirements shall include, but not  be  limited  to,
    56  annual reporting of:

        S. 2127--C                          4

     1    (1)  The average daily number of inbound and outbound vehicle trips by
     2  vehicle weight and class, and by time of day and day of the week;
     3    (2)  The  average daily vehicle miles traveled for all vehicles making
     4  inbound and outbound trips to and from the qualifying warehouse;
     5    (3) The average daily vehicle miles traveled and number of inbound and
     6  outbound trips for alternative modes of freight;
     7    (4) A heat map of the frequency data for trip destinations;
     8    (5) The number of jobs at the facility, including drivers  and  others
     9  employed  by  third-party contractors, with a breakdown of percentage of
    10  part-time and full-time employees,  independent  contractors,  unionized
    11  and non-union employees;
    12    (6)  The  percentage of vehicles used, specifying on-road vehicles and
    13  off-road vehicles as well as weight and vehicle  class,  that  are  zero
    14  emissions;
    15    (7)  The  number  of  electric vehicle charging stations installed and
    16  actual usage;
    17    (8) The number of  hydrogen  fueling  stations  installed  and  actual
    18  usage;
    19    (9)   The  number  of  on-site  renewable  energy  generation  systems
    20  installed;
    21    (10) The number of vehicles used to deliver from  the  site  that  are
    22  owned  by  the  warehouse  operator but leased to a third party, and the
    23  proportion of leased vehicles used as compared to vehicles owned by  the
    24  warehouse operator;
    25    (11)  The identity of subcontractors who conduct more than ten percent
    26  of total delivery vehicle trips from  the  site,  including  the  entity
    27  name,  principal officers, business address and contact information, and
    28  total number of employees; and
    29    (12) Any other information  necessary  to  effectively  implement  and
    30  enforce any rule or regulation promulgated pursuant to this section.
    31    3. The department shall impose an annual registration fee for qualify-
    32  ing warehouse operators.
    33    4.  Within  eighteen months of the effective date of this section, the
    34  department shall complete a study on the feasibility, benefits and costs
    35  of implementing low- and zero-emissions designated zones for medium- and
    36  heavy-duty vehicles as defined in regulations  promulgated  pursuant  to
    37  section  19-0306-b  of  this title within the state that are designed to
    38  lower air pollution, congestion, greenhouse gas  emissions,  and  noise,
    39  and  to  increase  safety.  The  study shall include recommendations for
    40  implementation of low- and zero-emissions zones at the state  and  local
    41  level and shall be made available to the public and posted on a publicly
    42  available website. In conducting the study, the department shall consid-
    43  er:
    44    a. Creation of zones restricting deliveries to zero-emissions delivery
    45  vehicles only;
    46    b.  Creation  of  zones  requiring  delivery  vehicles to meet certain
    47  stringent air pollution standards;
    48    c. Creation of zones requiring a  fee  for  entry  for  diesel-powered
    49  medium- and heavy-duty vehicles;
    50    d.  Prioritization  of  low- and zero-emissions zones within disadvan-
    51  taged communities identified under article seventy-five of this chapter;
    52  nonattainment zones under the national ambient air quality standards set
    53  by the federal environmental protection agency in 42  U.S.C.  7401;  and
    54  other  vulnerable  areas including areas proximate to schools, daycares,
    55  playgrounds, parks, hospitals, senior  centers  or  nursing  homes,  and
    56  disadvantaged communities as defined by section 75-0101 of this chapter;

        S. 2127--C                          5

     1    e.  Incentives  and  enforceable  measures for low- and zero-emissions
     2  zones, including fees;
     3    f. Measures to ensure reinvestment of any revenues from fees in public
     4  transit and zero-emissions transportation infrastructure;
     5    g.  Equity  considerations, including preventing unintended regressive
     6  cost impacts for low- and moderate-income New Yorkers; and
     7    h. Barriers to implementing low- and zero-emissions zones in the state
     8  and recommendations for overcoming such barriers.
     9    5. a. The provisions of  subdivisions  one,  two  and  three  of  this
    10  section  shall  not  apply in a city with a population of one million or
    11  more which, in consultation with and subject to the review and  approval
    12  of  the  department  after a public hearing in compliance with the state
    13  administrative procedure act, establishes and implements  a  program  by
    14  adopting  a local law or ordinance to regulate indirect source pollution
    15  from qualifying warehouses in a manner not inconsistent with  the  regu-
    16  lation  of  indirect  source  pollution  contemplated  by  42  U.S.C.  §
    17  7410(a)(5);  provided,  however,  any  such  municipal  indirect  source
    18  pollution  program  shall be, in the determination of the department, at
    19  least as stringent as the program established  under  subdivisions  one,
    20  two  and three of this section and all rules and regulations promulgated
    21  pursuant thereto.
    22    b. The department shall require any city establishing and implementing
    23  an indirect source pollution program in accordance with this subdivision
    24  to require the program to implement all data  collection  and  reporting
    25  requirements  contemplated by subdivision two of this section and submit
    26  all such data and  reporting  information  to  the  department  no  less
    27  frequently than every twelve months for review by the department.
    28    c.  The  department  shall  conduct  an  annual review of any indirect
    29  source pollution program established and implemented  pursuant  to  this
    30  subdivision.   Such reviews shall evaluate whether, among other relevant
    31  matters, such program continues to be  at  least  as  stringent  as  the
    32  program  established  under  subdivisions  one,  two  and  three of this
    33  section.
    34    d. In the event that the department determines that a  program  estab-
    35  lished  pursuant  to  this  subdivision  is  not  meeting any applicable
    36  requirements under this subdivision, the  department  shall  immediately
    37  notify such city of the deficiencies and if, in the determination of the
    38  department,  the  city does not take satisfactory corrective action, the
    39  department may take any corrective action it deems appropriate,  includ-
    40  ing  but  not  limited to suspending or terminating the approval contem-
    41  plated by paragraph a of this subdivision and enforcing  the  provisions
    42  of  this  section  in  such city; provided, however, any indirect source
    43  pollution law in effect in a city of one million or    more  as  of  the
    44  effective  date  of  this section may not be found to be failing to meet
    45  such applicable requirements  for  the  one-year  period  following  the
    46  effective date of this section.
    47    e.  The exemption contemplated by this subdivision shall be limited to
    48  the regulation of indirect source pollution from  qualifying  warehouses
    49  and  may not be construed as an exemption from compliance with any other
    50  law, rule, regulation, decision or order.
    51    § 2. This act shall take effect on the thirtieth day  after  it  shall
    52  have become a law.
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