NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A10673
SPONSOR: Rules (Lifton) TITLE OF BILL:
An act authorizing a study on implementing a greenhouse gas or carbon
emissions fee or tax
PURPOSE:
To authorize a report on the impacts of a statewide greenhouse gas or
carbon emission fee or tax.
SUMMARY OF PROVISIONS:
Section 1 directs the New York State Energy Research and Development
Authority (NYSERDA) to prepare a report for submission to the Environ-
mental Conservation Committees of the Assembly and Senate related to
implementing a statewide greenhouse gas or carbon emission fee or tax.
The report shall: analyze the impact of greenhouse gas emissions,
including carbon and methane, and the dangers posed to state residents
due to climate change; analyze the potential environmental and policy
benefits derived from a carbon tax; identify an effective structure for
a carbon fee; evaluate the direct and indirect impact of a carbon fee on
low-income households, consumers, industries and localities; evaluate
the level of greenhouse gas emissions based on different rates of a
carbon fee; evaluate how to treat imported and exported energy sources
under a carbon fee; evaluate the impact of a carbon fee on jobs and
wages; evaluate the per unit costs of specific types of fuel that would
be subject to a carbon fee or tax; evaluate revenue allocation options
from collection of a carbon fee or tax.
Section 2 requires a written preliminary report to be submitted to the
state legislature by December 1, 2016, and a final report on or before
March 1, 2017.
Section 3 requires at least two public hearings before release of the
final report, to allow for public input in the study.
EXISTING LAW:
None.
JUSTIFICATION:
This greenhouse gas tax study bill is a critical component in moving New
York State towards its target of reducing greenhouse gas emissions by
80% of 1990 levels by the year 2050. A greenhouse gas study will answer
many important questions about the impacts of implementing a statewide
greenhouse gas tax. Understanding the impacts to low-income families and
neighborhoods, the environmental and policy benefits, the optimal taxa-
tion level, and how to allocate the revenues generated by a greenhouse
gas tax, among other concerns, will provide important information
tailored to the specifics of New York State.
Following the Paris Climate Agreement of December 2015, the global
community has acknowledged the imminent threat posed by climate change
and is demanding action. Already, New York State has witnessed the
devastating effects of Hurricane Sandy and other extreme weather events.
Many economists agree that a carbon/ greenhouse gas tax is one of the
most effective ways to curb emissions, by accounting for the full costs
of climate pollution through a market-based solution. A comprehensive
carbon tax study can help pave the way for taking strong action on
climate change.
LEGISLATIVE HISTORY:
New bill.
FISCAL IMPLICATIONS:
None.
EFFECTIVE DATE:
Immediately.
STATE OF NEW YORK
________________________________________________________________________
10673
IN ASSEMBLY
June 12, 2016
___________
Introduced by COMMITTEE ON RULES -- (at request of M. of A. Lifton) --
read once and referred to the Committee on Ways and Means
AN ACT authorizing a study on implementing a greenhouse gas or carbon
emissions fee or tax
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. 1. The New York state energy research and development
2 authority (NYSERDA) is hereby directed to prepare a report for
3 submission to the environmental conservation committees of the Senate
4 and Assembly related to implementing a statewide greenhouse gas or
5 carbon emission fee or tax (hereinafter a carbon fee or tax) related to
6 assisting the state in reducing or eliminating such greenhouse gases.
7 The report shall:
8 (a) analyze the current and future environmental impact of greenhouse
9 emissions, including carbon and methane, and the dangers posed to resi-
10 dents for climate change;
11 (b) analyze the potential environmental and policy benefits derived
12 from a carbon tax;
13 (c) identify an effective structure for a carbon fee or tax to gener-
14 ate revenue;
15 (d) evaluate the direct and indirect impact of a carbon fee or tax on
16 low-income households, consumers, industries and localities;
17 (e) evaluate the direct and indirect regional and statewide impact of
18 a carbon fee or tax;
19 (f) evaluate whether the level of greenhouse gas emissions reductions
20 might vary based on different rates of a carbon fee or tax, including
21 determining the minimum level of such fee or tax needed to ensure a
22 significant reduction in greenhouse gas emissions;
23 (g) evaluate how to treat imported and exported energy sources under a
24 carbon fee or tax;
25 (h) evaluate the impact of a carbon fee or tax on jobs and wages;
26 (i) evaluate the impact of a carbon fee or tax on existing fees, state
27 revenue and state income taxes, including the regional greenhouse gas
28 initiative;
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD11872-01-5
A. 10673 2
1 (j) evaluate the per unit costs of specific types of fuels that would
2 be subject to a carbon fee or tax; and
3 (k) evaluate revenue allocation options, including assisting in fund-
4 ing a transition to clean renewable energy, maximizing positive impacts
5 and mitigating detrimental or unequal impacts on low and moderate income
6 households, improving mass transit, implementing climate change adapta-
7 tion measures such as making improvements in infrastructure, implement-
8 ing agricultural adaptation measures, increasing protection of low-lying
9 areas including coastlines, and enhancing emergency health response to
10 extreme weather events.
11 2. NYSERDA shall submit a written preliminary report to the state
12 legislature related to revenue and the environment on or before December
13 1, 2016, and a final report on or before March 1, 2017. NYSERDA may
14 contract with third parties as necessary to prepare the reports and any
15 related recommendations.
16 3. NYSERDA shall provide for public input in the study, including
17 holding at least two public hearings before the final report is
18 released.
19 § 2. This act shall take effect immediately.
