Bill Text: NY S04378 | 2021-2022 | General Assembly | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Establishes the "pollution justice act of 2022"; implements a plan to replace peaker plant electric generating facilities with renewable energy systems.

Spectrum: Partisan Bill (Democrat 10-0)

Status: (Engrossed - Dead) 2022-02-11 - PRINT NUMBER 4378B [S04378 Detail]

Download: New_York-2021-S04378-Amended.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                         4378--A
            Cal. No. 341

                               2021-2022 Regular Sessions

                    IN SENATE

                                    February 4, 2021
                                       ___________

        Introduced by Sens. BRISPORT, HINCHEY, SALAZAR -- read twice and ordered
          printed, and when printed to be committed to the Committee on Environ-
          mental Conservation -- reported favorably from said committee, ordered
          to  first  and  second report, ordered to a third reading, amended and
          ordered reprinted, retaining its place in the order of third reading

        AN ACT to amend the  environmental  conservation  law,  in  relation  to
          establishing  the  "pollution  justice act of 2021" and implementing a
          plan to replace peaker plants with renewable energy systems

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

     1    Section  1. This act shall be known and may be cited as the "pollution
     2  justice act of 2021".
     3    § 2. Article 19 of the environmental conservation law  is  amended  by
     4  adding a new title 13 to read as follows:
     5                                  TITLE 13
     6                                PEAKER PLANTS
     7  Section 19-1301. Statement of findings.
     8          19-1303. Definitions.
     9          19-1305. Mandatory replacement and compliance plan.
    10          19-1307. Extensions for cause.
    11          19-1309. Prohibitions.
    12          19-1311. Exemptions.
    13  § 19-1301. Statement of findings.
    14    1.  Electric generating units that generally operate during periods of
    15  peak electricity demand are known as peaker plants. Many  peaker  plants
    16  in  the  state  are  older  fossil fuel-fired units that emit greenhouse
    17  gases and a variety of other harmful  air  pollutants  including  sulfur
    18  oxides, nitrogen oxides, particulates and mercury.
    19    2. A substantial number of peaker plants are located in or adjacent to
    20  environmental  justice  communities  in  the  city  of New York and Long
    21  Island that already bear disproportionate pollution  burdens  due  to  a

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04461-02-1

        S. 4378--A                          2

     1  history  of siting pollution sources in those communities. More than one
     2  million New Yorkers live within one mile of a peaker plant.
     3    3.  Pollutants  from  peaker  plants  contribute to significant public
     4  health problems. According to the New York city department of health and
     5  mental hygiene's air pollution and the health  of  New  Yorkers  report:
     6  "each  year,  PM2.5  pollution in (New York City) causes more than 3,000
     7  deaths, 2,000 hospital admissions for lung  and  heart  conditions,  and
     8  approximately  6,000  emergency department visits for asthma in children
     9  and adults."   According to the report, each  year  exposures  to  ozone
    10  concentrations above background levels cause an estimated "400 premature
    11  deaths,  850  hospitalizations for asthma and 4,500 emergency department
    12  visits for asthma."
    13    4. Peaker plants often operate during summer months when air pollution
    14  levels are highest and their emissions add to existing pollution burdens
    15  in environmental justice communities and contribute  to  adverse  health
    16  effects in those communities from air pollution.
    17    5. The owners and operators of peaker plants have received billions of
    18  dollars  in  capacity  payments  from ratepayers over the last decade to
    19  subsidize operation of their plants, even though  the  plants  primarily
    20  operate during peak load periods.
    21    6.  Fossil  fuel-burning  peaker plants can be replaced with renewable
    22  energy systems that will eliminate or significantly reduce air pollution
    23  impacts to environmental justice communities  from  peaker  plant  oper-
    24  ations.
    25    7.  Replacement  of  fossil  fuel-burning peaker plants with renewable
    26  energy systems is in the public interest, will save millions of  dollars
    27  in environmental and human health-related damages, will promote environ-
    28  mental  justice  and  will assist in meeting the greenhouse gas emission
    29  reduction and energy storage goals of the climate leadership and  commu-
    30  nity protection act.
    31  § 19-1303. Definitions.
    32    1. "Adjacent to" shall mean within a radius of one mile from the plant
    33  property boundary.
    34    2.  "Economically distressed area" shall mean an area characterized by
    35  a poverty rate of at least twenty percent or an unemployment rate of  at
    36  least  one  hundred  twenty-five  percent  of the statewide unemployment
    37  rate.
    38    3. "Environmental justice community" means an economically  distressed
    39  area or minority community and includes, but is not limited to, environ-
    40  mental justice areas identified by the department.
    41    4. "Ethnic group" shall mean those groups identified in the definition
    42  of  minority  group member in subdivision eight of section three hundred
    43  ten of the executive law.
    44    5. "Minority community" shall mean any census tract, census  block  or
    45  census  block  group  that  includes  twenty-five percent or more of any
    46  ethnic group.
    47    6. "Operating permit" shall have the meaning set forth in  subdivision
    48  eighteen of section 19-0107 of this article.
    49    7.  "Renewable  energy  systems"  shall  have the meaning set forth in
    50  section sixty-six-p of the public service law and may also include  firm
    51  zero emission resources such as long-duration energy storage.
    52    8.  "Replace" or "replacement" means the construction and operation of
    53  a renewable energy system, battery or energy  storage,  or  transmission
    54  and distribution infrastructure that enables the provision of the equiv-
    55  alent  maximum  annual  power  output achieved by the replaceable peaker

        S. 4378--A                          3

     1  plant during  any  single  year  during  the  ten  years  preceding  the
     2  submission of an application to renew an operating permit.
     3    9. "Replaceable peaker plant" means a major electric generating facil-
     4  ity  as  defined in paragraph b of subdivision one of section 19-0312 of
     5  this article that burns coal, oil, diesel or natural gas and was  opera-
     6  tional  and  generated electricity less than fifteen percent of the year
     7  during at least two years between two thousand ten through two  thousand
     8  nineteen  and that is located in or adjacent to an environmental justice
     9  community.
    10  § 19-1305. Mandatory replacement and compliance plan.
    11    1. The owner or operator of a replaceable peaker plant shall submit to
    12  the department as part of an application to renew an operating permit  a
    13  mandatory replacement and compliance plan that shall include, at a mini-
    14  mum, the following:
    15    a. The number of days and hours such plant operated during each of the
    16  previous ten years;
    17    b.  The annual power output of such plant for each of the previous ten
    18  years;
    19    c. The fuel or fuels utilized by such plant to generate power;
    20    d. A proposed strategy to replace  the  plant  with  renewable  energy
    21  systems or battery storage or a combination thereof. The strategy shall,
    22  at  a  minimum,  set forth the type or types of renewable energy systems
    23  and battery storage to be utilized, the proposed location  or  locations
    24  of  such  renewable energy systems and battery storage, and the electric
    25  generating capacity of such renewable energy systems and  battery  stor-
    26  age;
    27    e. A timetable for implementation of the proposed replacement strategy
    28  that shall not exceed five years from the date of renewal of the operat-
    29  ing  permit  and that shall ensure that the renewable energy systems and
    30  battery storage are fully operational, and the operations of the  peaker
    31  plant  can be completely replaced, on or before five years from the date
    32  of renewal of the operating permit; and
    33    f. A demonstration of how the proposed renewable  energy  systems  and
    34  battery  storage  strategy  and timetable for implementation will comply
    35  with the renewable energy goals set forth in section sixty-six-p of  the
    36  public service law.
    37    2.  The  department  shall  provide  public  notice  of  the mandatory
    38  replacement and compliance plan and an opportunity for public comment on
    39  the plan of not less than sixty days. The department shall hold at least
    40  two public hearings on the plan in the  affected  environmental  justice
    41  community  or  communities,  with  such  public  hearings offering video
    42  participation and accessibility.
    43    3. After review and consideration of public comments,  the  department
    44  shall approve, approve with modifications or disapprove the plan.
    45    4. Upon approval of the mandatory replacement and compliance plan, the
    46  owner  or  operator  of the replaceable peaker plant shall implement the
    47  plan in accordance with the schedule set forth in the plan  and  provide
    48  to the department an annual compliance and progress report beginning one
    49  year  after  the department approves the plan. The department shall make
    50  each annual compliance and progress report available on its website.
    51    5. If the department disapproves a proposed plan, the department shall
    52  inform the owner or operator of the replaceable peaker plant in  writing
    53  of  the  reasons for such disapproval and shall identify the portions of
    54  the disapproved plan that need to be modified.  The  owner  or  operator
    55  shall  submit a modified plan within sixty days of receiving the depart-
    56  ment's written notice of disapproval. The modified plan shall be subject

        S. 4378--A                          4

     1  to the notice and public comment and hearing  procedures  set  forth  in
     2  this section.
     3  § 19-1307. Extensions for cause.
     4    1.  The  owner  or operator of a replaceable peaker plant may apply to
     5  the department for a single five-year  extension  of  the  deadline  for
     6  replacement set forth in section 19-1305 of this article.
     7    2.  The  department shall provide public notice of the application for
     8  any such extension, and an opportunity for public comment on such appli-
     9  cation, of not less than sixty days. The department shall hold at  least
    10  two  public  hearings  on  the application in the affected environmental
    11  justice community or communities, with  such  public  hearings  offering
    12  video  participation  and  accessibility. Any such public hearings shall
    13  also explore the option of transitioning the  replaceable  peaker  plant
    14  into the ownership or control of the New York power authority, an entity
    15  that  currently owns and operates several peaker plants in the state, to
    16  manage the transition to renewable energy and battery storage systems.
    17    3. After review and consideration of public comments,  the  department
    18  shall approve, approve with modifications, or disapprove the application
    19  for a single five-year extension.
    20    4.  The  department  may  only  grant  an application for an extension
    21  request upon a  showing  by  the  applicant,  by  clear  and  convincing
    22  evidence,  that  (a)  replacement  of  the  plant  with renewable energy
    23  systems and battery storage by the deadline is  not  feasible,  (b)  the
    24  department  of  public  service, in consultation with the New York inde-
    25  pendent system operator, has made a written determination that extending
    26  the deadline for the plant is necessary to maintain reliability  of  the
    27  electric grid, and (c) the continued operation of the peaker plant would
    28  not  result  in  adverse  health  impacts for the impacted environmental
    29  justice communities.
    30  § 19-1309. Prohibitions.
    31    1. Except as provided in section 19-1307  of  this  title,  no  person
    32  shall  operate a replaceable peaker plant that is not in compliance with
    33  the requirements of this title and the department  shall  not  issue  an
    34  operating  permit  or renew an operating permit for a replaceable peaker
    35  plant that does not have an approved mandatory replacement  and  compli-
    36  ance plan.
    37    2.  The  department  shall  not  issue an operating permit or renew an
    38  operating permit for a replaceable peaker plant that has  not  completed
    39  implementation  of  a  mandatory  replacement and compliance plan by the
    40  deadline set forth in the plan.
    41  § 19-1311. Exemptions.
    42    1. A replaceable peaker plant is not subject to  the  requirements  of
    43  this  title  if the owner or operator of the plant has submitted written
    44  notification to the department of public service that the plant will  be
    45  permanently  retired on or before the first day of January, two thousand
    46  twenty-six.
    47    2. The department shall, effective on or before the first day of Janu-
    48  ary, two thousand twenty-six, revoke the operating permit of a replacea-
    49  ble peaker plant for which written notification has been provided to the
    50  department of  public  service  pursuant  to  subdivision  one  of  this
    51  section.
    52    § 3. This act shall take effect immediately.
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