S03616 Summary:

BILL NOS03616
 
SAME ASNo Same As
 
SPONSORPARKER
 
COSPNSRSANDERS
 
MLTSPNSR
 
Add Art 19 Title 13 19-1301 - 19-1313, Art 74 74-0101 - 74-0103, En Con L; add Art 8-B 228, Art 25-D 863 - 863-g, Lab L; add Art 8 Title 9-B 1901 - 1922, Pub Auth L; add Art 42 3039 - 3047, Art 43 3050 - 3058, Tax L
 
Enacts the climate and community investment act; establishes the climate justice working group; establishes the worker and community assurance program; establishes the community just transition program; establishes the climate jobs and infrastructure program; imposes a fee on carbon based fuel sold, used or brought into the state by an applicable entity; establishes trust funds; establishes a rebate program.
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S03616 Actions:

BILL NOS03616
 
02/11/2019REFERRED TO ENVIRONMENTAL CONSERVATION
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S03616 Committee Votes:

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S03616 Floor Votes:

There are no votes for this bill in this legislative session.
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S03616 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          3616
 
                               2019-2020 Regular Sessions
 
                    IN SENATE
 
                                    February 11, 2019
                                       ___________
 
        Introduced  by  Sens. PARKER, SANDERS -- read twice and ordered printed,
          and when printed to be committed to  the  Committee  on  Environmental
          Conservation
 
        AN  ACT  to amend the environmental conservation law, the labor law, the
          public authorities law and the tax law, in relation  to  enacting  the
          climate and community investment act

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Short title. This act shall be known and may  be  cited  as
     2  the "climate and community investment act".
     3    §  2. Legislative findings and declaration.  The legislature finds and
     4  declares that:
     5    1. Climate change is adversely affecting economic  well-being,  public
     6  health,  natural resources, and the environment of New York. The adverse
     7  impacts of climate change include:
     8    (a) an increase in the  severity  and  frequency  of  extreme  weather
     9  events, such as storms, flooding, and heat waves, which can cause direct
    10  injury  or  death, property damage, and ecological damage (e.g., through
    11  the release of hazardous substances into the environment);
    12    (b) rising sea levels, which exacerbate damage from storm  surges  and
    13  flooding,  contribute  to  coastal  erosion and saltwater intrusion, and
    14  inundate low-lying areas, leading to the displacement of  or  damage  to
    15  coastal habitat, property, and infrastructure;
    16    (c) a decline in freshwater and saltwater fish populations;
    17    (d)  increased average temperatures, which increase the demand for air
    18  conditioning and refrigeration among residents and businesses;
    19    (e) exacerbation of air pollution; and
    20    (f) an increase in  the  incidences  of  infectious  diseases,  asthma
    21  attacks, heart attacks, and other negative health outcomes.
    22    2.  The  adverse  impacts  of  climate change are having a detrimental
    23  effect on some of New York's largest industries, including  agriculture,
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09816-01-9

        S. 3616                             2
 
     1  commercial  shipping, forestry, tourism, and recreational and commercial
     2  fishing. These impacts also place  additional  strain  on  the  physical
     3  infrastructure  that  delivers  critical services to the citizens of New
     4  York,  including  the  state's  energy,  transportation, stormwater, and
     5  wastewater infrastructure.
     6    3. (a) The severity of current climate change and the threat of  addi-
     7  tional and more severe change will be affected by the actions undertaken
     8  by  New York and other jurisdictions to reduce greenhouse gas emissions.
     9  According to the U.S. Global Change Research Program  (USGCRP)  and  the
    10  Intergovernmental Panel on Climate Change (IPCC), substantial reductions
    11  in  greenhouse gas emissions will be required by mid-century in order to
    12  limit global warming to no more than 2°C and  ideally  1.5°C,  and  thus
    13  minimize  the  risk of severe impacts from climate change. Specifically,
    14  industrialized countries must reduce their greenhouse gas  emissions  by
    15  at  least  80%  below  1990  levels by 2050 in order to stabilize carbon
    16  dioxide equivalent concentrations at 450 parts  per  million--the  level
    17  required to stay within the 2°C target.
    18    (b)  On  December  12,  2015, one hundred ninety-five countries at the
    19  21st Conference of the parties of the United Nations  Framework  Conven-
    20  tion  on  Climate  Change adopted an agreement addressing greenhouse gas
    21  emissions mitigation, adaptation, and finance starting in the year 2020,
    22  known as the Paris Agreement. The Paris Agreement was adopted on  Novem-
    23  ber  4,  2016,  and  is  the  largest  concerted global effort to combat
    24  climate change to date.
    25    4. Action undertaken by New York to reduce greenhouse  emissions  will
    26  have  an  impact  on  global  greenhouse  gas  emissions and the rate of
    27  climate change. In addition, such action will encourage other  jurisdic-
    28  tions to implement complementary greenhouse gas reduction strategies and
    29  provide  an  example  of how such strategies can be implemented. It will
    30  also advance the development of green technologies and sustainable prac-
    31  tices within the private sector, which  can  have  far-reaching  impacts
    32  such  as a reduction in the cost of renewable energy components, and the
    33  creation of jobs and tax revenues in New York.
    34    5. It shall therefore be a goal of the state of  New  York  to  reduce
    35  greenhouse gas emissions from all anthropogenic sources 100% by the year
    36  2050,  with  an incremental target of at least a 50 percent reduction in
    37  climate pollution by the year 2030, in line with USGCRP and IPCC projec-
    38  tions of what is necessary to avoid the most severe impacts  of  climate
    39  change.
    40    6.  Although  substantial  emissions reductions are necessary to avoid
    41  the most severe impacts  of  climate  change,  complementary  adaptation
    42  measures  will  also  be  needed  to  address those risks that cannot be
    43  avoided. Some of the impacts of climate change are already observable in
    44  New York state  and  the  northeastern  United  States.  Annual  average
    45  temperatures  are  on  the  rise,  winter snow cover is decreasing, heat
    46  waves and precipitation are  intensifying,  and  sea  levels  along  New
    47  York's  coastline  are  approximately  one foot higher than they were in
    48  1900. New York has also experienced an increasing number of extreme  and
    49  unusual   weather   events,  like  Hurricanes  Irene  and  Lee  and  the
    50  unprecedented Superstorm Sandy in 2012, which caused at least 53  deaths
    51  and $32 billion in damage in New York state.
    52    7.  New  York  should  therefore  minimize  the  risks associated with
    53  climate change through a combination of  measures  to  reduce  statewide
    54  greenhouse  gas  emissions  and improve the resiliency of the state with
    55  respect to the impacts and  risks  of  climate  change  that  cannot  be
    56  avoided.

        S. 3616                             3
 
     1    8.  Climate change especially heightens the vulnerability of disadvan-
     2  taged communities, which bear environmental and socioeconomic burdens as
     3  well as legacies of racial and ethnic discrimination. Actions undertaken
     4  by New York state to mitigate greenhouse gas emissions should prioritize
     5  the  safety  and  health of disadvantaged communities, control potential
     6  regressive impacts of future climate change  mitigation  and  adaptation
     7  policies  on  these communities, and prioritize the allocation of public
     8  investments in these areas.
     9    9. Creating good jobs and a thriving economy is a core concern of  New
    10  York  state.  Shaping  the  ongoing  transition  in our energy sector to
    11  ensure that it creates good jobs and protects  workers  and  communities
    12  that  may lose employment in the current transition must be key concerns
    13  of our climate policy. Setting  clear  standards  for  job  quality  and
    14  training  standards  encourages  not only high-quality work but positive
    15  economic impacts.
    16    10. Workers are at the  frontlines  of  climate  change.  Construction
    17  workers  and  building  service  workers  were some of the first workers
    18  dedicated to cleaning up damage inflicted by recent storms. These  work-
    19  ers  were  often operating in unsafe and toxic environments, cleaning up
    20  mold, and working in unstable buildings. In order to protect the  health
    21  and  welfare of these workers, it is in the interest of the state of New
    22  York to establish safe and healthy working conditions and proper  train-
    23  ing  for workers involved in climate change related activities. In addi-
    24  tion, much of the infrastructure work preparing our state for additional
    25  climate change events must happen quickly and efficiently. It is in  the
    26  interest  of  the  state  to  ensure labor harmony and promote efficient
    27  performance of work on climate change related work  sites  by  requiring
    28  workers to be well-trained and adequately compensated.
    29    11.  Ensuring  career  opportunities  are created and shared geograph-
    30  ically and demographically is necessary to ensure  increased  access  to
    31  good  jobs  for marginalized communities while making the same neighbor-
    32  hoods more resilient. Climate change has a  disproportionate  impact  on
    33  low-income  people,  women,  and  workers.  It is in the interest of the
    34  state of New York to protect and promote the interests of  these  groups
    35  against  the  impacts of climate change and severe weather events and to
    36  advance our equity goals by ensuring quality employment opportunities in
    37  safe working environments.
    38    12. The complexity  of  the  ongoing  energy  transition,  the  uneven
    39  distribution  of  economic opportunity, and the disproportionate cumula-
    40  tive economic and environmental burdens on communities mean  that  there
    41  is a strong state interest in setting a floor statewide for labor stand-
    42  ards, but allowing and encouraging individual agencies and local govern-
    43  ments to raise standards above that floor.
    44    13.  By  exercising  a  global leadership role on greenhouse gas miti-
    45  gation and climate change adaptation, New York will position its  econo-
    46  my,  technology centers, financial institutions, and businesses to bene-
    47  fit from national and international efforts to address  climate  change.
    48  New  York  state  has  already  demonstrated  leadership in this area by
    49  undertaking efforts such as:
    50    (a) executive order no. 24  (2009),  establishing  a  goal  to  reduce
    51  greenhouse gas emissions 80% by the year 2050, creating a climate action
    52  council, and calling for preparation of a climate action plan;
    53    (b) chapter 433 of the laws of 2009, establishing a state energy plan-
    54  ning board and requiring the board to adopt a state energy plan;
    55    (c) chapter 388 of the laws of 2011, directing the department of envi-
    56  ronmental  conservation  to  promulgate  rules  and regulations limiting

        S. 3616                             4
 
     1  emissions of carbon dioxide by newly constructed major generating facil-
     2  ities;
     3    (d)  the  adoption  of  a  state energy plan establishing clean energy
     4  goals for the year 2030 aimed at reducing greenhouse gas emission levels
     5  by 40% from 1990 levels, producing 50%  of  electricity  from  renewable
     6  sources, and increasing energy efficiency from 2012 levels by 23%;
     7    (e)  collaboration  with  other  states on the Regional Greenhouse Gas
     8  Initiative, and the development of a regional low carbon fuel standard;
     9    (f) creation of new offices and task forces to address climate change,
    10  including the New York state office of  climate  change,  the  renewable
    11  energy task force, and the sea level rise task force; and
    12    (g)  the  enactment  of  the Community Risk and Resiliency Act (CRRA),
    13  which requires agencies to consider sea level rise and other climate-re-
    14  lated events when implementing certain state programs.
    15    This legislation will build upon these past developments by creating a
    16  comprehensive program for pricing greenhouse gas emissions and investing
    17  in a just transition to a low-carbon New York state economy, in  accord-
    18  ance  with  the targets established in executive order no. 24, the state
    19  energy plan, and USGCRP and IPCC projections.
    20    § 3. Article 19 of the environmental conservation law  is  amended  by
    21  adding a new title 13 to read as follows:
    22                                  TITLE 13
    23                            AIR POLLUTION PRICING
    24  Section 19-1301. Definitions.
    25          19-1303. Methodology and air pollutant price index.
    26          19-1305. Implementation of fees.
    27          19-1307. Allocation of revenues.
    28          19-1309. Inventory.
    29          19-1311. Transportation pollution.
    30          19-1313. Reporting.
    31  § 19-1301. Definitions.
    32    For  the  purposes  of  this title, the following terms shall have the
    33  following meanings:
    34    1. "The Act" shall have the  same  meaning  as  in  subdivision  8  of
    35  section 19-0107 of this article.
    36    2. "Covered sources" means those sources of regulated air contaminants
    37  required  to  have  a permit under Title V of the Act (42 U.S.C. section
    38  7661 et seq).
    39    3. "Cumulative burdens" mean the adverse health impacts that accrue to
    40  individuals and population groups as a result of exposure  to  pollution
    41  over  time,  and  as a result of exposure to multiple forms of pollution
    42  and other risk  factors,  including  poverty,  violence,  and  substance
    43  abuse.
    44    4.  "Disadvantaged  communities"  shall  have  the  same meaning as in
    45  subdivision 3 of section 74-0101 of this chapter.
    46    5. "Downstate region" means the counties of Richmond,  Kings,  Queens,
    47  New York, Bronx, Westchester, Nassau and Suffolk.
    48    6.  "Emissions  hotspot" means a location where emissions of regulated
    49  air contaminants from specific sources may expose individuals and  popu-
    50  lation  groups  to  elevated  risks  of  adverse  health effects and may
    51  contribute to the cumulative health risks of emissions from other sourc-
    52  es in the area.
    53    7. "Emissions leakage" means an increase in emissions outside  of  the
    54  state,  as  a  result  of, or in correlation with, the implementation of
    55  measures within the state to limit such emissions.

        S. 3616                             5
 
     1    8. "Greenhouse gas" means  carbon  dioxide,  methane,  nitrous  oxide,
     2  hydrofluorocarbons, perfluorocarbons, sulfur hexafluoride, and any other
     3  substance  emitted  into  the  air that may be reasonably anticipated to
     4  cause or contribute to anthropogenic climate change, with the  exception
     5  of agricultural emissions from livestock.
     6    9.  "Regulated  air  contaminant"  shall  have  the same meaning as in
     7  subdivision 22 of section 19-0107 of this article.
     8    10. "Social cost of pollution" means the cost to New York residents of
     9  emitting one ton, or another unit of measurement deemed  appropriate  by
    10  the commissioner, of a given regulated air contaminant.
    11    11.  "Upstate  region"  means  all  New York state counties other than
    12  Nassau, Suffolk, Richmond, Kings, Queens, New York, Bronx and  Westches-
    13  ter.
    14    12.  "Working  group"  means  the climate justice working group estab-
    15  lished under section 74-0103 of this chapter.
    16  § 19-1303. Methodology and air pollutant price index.
    17    1. Not later than one year after the effective date of this title, the
    18  commissioner shall publish an  index  that  lists  the  social  cost  of
    19  pollution  for all regulated air contaminants, or appropriate sub-group-
    20  ing thereof. At the same time, the commissioner shall publish a  method-
    21  ology  for  determining  the social cost of pollution for each regulated
    22  air contaminant, or appropriate sub-grouping thereof. In determining the
    23  social cost of pollution for a  given  regulated  air  contaminant,  the
    24  commissioner shall consider, at a minimum:
    25    (a)  public  health impacts, including: loss of life, loss of welfare,
    26  employment impacts and other public health impacts;
    27    (b) impacts to public and  private  property,  including  agricultural
    28  property;
    29    (c)  impacts  to  ecosystems  and the ability of ecosystems to provide
    30  ecosystem services; and
    31    (d) the full life-cycle of impacts.
    32    2. If the commissioner demonstrates that it  is  not  administratively
    33  feasible  in  the  time  allotted  in  subdivision  1 of this section to
    34  complete a methodology for each individual regulated air contaminant, or
    35  appropriate sub-grouping thereof, then the commissioner  may  delay  the
    36  completion  of  methodologies  for some portion of regulated air contam-
    37  inants for future rule-makings, provided that:
    38    (a) in the first publication of such methodologies,  the  commissioner
    39  completes  a methodology, pursuant to subdivision 1 of this section, for
    40  each of the following pollutants:
    41    (i) oxides of nitrogen;
    42    (ii) volatile organic compounds;
    43    (iii) sulfur dioxide;
    44    (iv) particulate matter;
    45    (v) carbon monoxide; and
    46    (vi) lead;
    47    (b) in the first publication of such methodologies,  the  commissioner
    48  completes  a methodology, pursuant to subdivision 1 of this section, for
    49  each of the air contaminants listed under section 112 of the Act (42 USC
    50  section 7412) that the commissioner finds to be most damaging to  public
    51  health in New York, of all air contaminants listed under such section;
    52    (c) the commissioner demonstrates and publishes, along with the publi-
    53  cation of methodologies described under subdivision 1 of this section, a
    54  description  of  why  it  is  not  administratively feasible in the time
    55  allotted in subdivision 1 of this section to complete a methodology, for

        S. 3616                             6
 
     1  each individual regulated air contaminant, or  appropriate  sub-grouping
     2  thereof; and
     3    (d)  the  commissioner subsequently publishes at least five additional
     4  methodologies per year, until that date when each regulated air  contam-
     5  inant,  or  appropriate sub-grouping thereof, has a complete methodology
     6  ascribed to it.
     7  § 19-1305. Implementation of fees.
     8    1. Not later than two years after the effective date  of  this  title,
     9  the  commissioner  shall  institute  a  system  of  compliance fees that
    10  reflect the index established under section 19-1303 of this title.   All
    11  covered  sources shall be required to pay the fee for each regulated air
    12  contaminant emitted.
    13    2. Notwithstanding any inconsistent provisions of the  state  adminis-
    14  trative procedure act, such fee shall be established as a rule by publi-
    15  cation  in  the  environmental notice bulletin no later than thirty days
    16  after the budget bills making appropriations for the support of  govern-
    17  ment are enacted or July first, whichever is later, of the year such fee
    18  will be effective.
    19    3. Bills issued for the fee shall be based on actual emissions for the
    20  prior  calendar  year, as demonstrated to the department's satisfaction,
    21  or in the absence of such demonstration,  on  permitted  emissions,  or,
    22  where  there  is  no  applicable  permit,  on potential to emit. Persons
    23  required to submit an emissions statement to the  department  shall  use
    24  such statement to demonstrate actual emissions under this section.
    25    4.  Any  person  required to pay fees imposed pursuant to this section
    26  may elect to base such fees on the  level  of  permitted  emissions  set
    27  forth  in  a  permit, certificate or approval issued pursuant to section
    28  19-0311 of this article.
    29    5. If a city or county is delegated the authority  to  administer  the
    30  operating permit program established pursuant to section 19-0311 of this
    31  article,  it  may  collect the fees established pursuant to this section
    32  and no additional liability for fees under this section shall accrue for
    33  any such source.
    34  § 19-1307. Allocation of revenues.
    35    1. The commissioner shall establish a trust fund to be  known  as  the
    36  "air  pollution  pricing  fund",  consisting  of  such amounts as may be
    37  appropriated or credited to such fund as provided in this section.
    38    2.  (a) There is hereby appropriated to the air pollution pricing fund
    39  for each fiscal year following the effective date  of  this  title,  the
    40  total  amount  of  fees  received under this title during such year, and
    41  such amounts shall be allocated accordingly:
    42    (i) forty percent of funds  shall  go  to  the  environmental  justice
    43  office of the department;
    44    (ii) twenty percent of funds shall go to improving and maintaining the
    45  New York state Title V emissions inventory;
    46    (iii)  twenty percent of funds shall go to improving air quality moni-
    47  toring, including ambient air quality monitoring and point source  moni-
    48  toring; and
    49    (iv)  twenty  percent of funds shall be allocated at the discretion of
    50  the commissioner, based on the needs of the department.
    51    (b) The air pollution  pricing  fund  shall  be  administered  by  the
    52  commissioner.
    53  § 19-1309. Inventory.
    54    Not later than eighteen months after the effective date of this title,
    55  the  commissioner  shall  update  and publish the inventory of emissions
    56  from Title V sources to:

        S. 3616                             7
 
     1    1. assess the extent to which given regulated air contaminants,  espe-
     2  cially  air  contaminants  that  have highly adverse health impacts, are
     3  co-emitted with greenhouse gas emissions;
     4    2.  assess  the  extent  to which regulated air contaminants that have
     5  especially adverse health impacts are likely to be reduced over time  as
     6  a result of:
     7    (a) the fee established in section 3040 of the tax law; and
     8    (b)  the  investment programs established in title 9-B of article 8 of
     9  the public authorities law;
    10    3. identify and analyze emissions  hotspots  and  cumulative  burdens,
    11  pertaining  to  regulated  air contaminants in order to prioritize emis-
    12  sions reductions in these areas;
    13    4. assess emissions and pollution-related  health  impacts  associated
    14  with the transportation sector; and
    15    5. make the Title V emissions inventory more accessible to the public.
    16  § 19-1311.  Transportation pollution.
    17    1. Not later than one year after the effective date of this title, the
    18  commissioner  shall  prepare  and  approve  a scoping plan outlining the
    19  department's recommendations for accelerating the reduction of regulated
    20  air contaminants from mobile sources.
    21    2. The draft scoping plan shall be developed in consultation with  the
    22  working group and other stakeholders.
    23    (a)  The  department shall provide meaningful opportunities for public
    24  comment from all persons who will be impacted  by  the  plan,  including
    25  persons living in disadvantaged communities.
    26    (b)  On or before one year after the effective date of this title, the
    27  department shall submit the final scoping  plan  to  the  governor,  the
    28  speaker  of  the  assembly and the temporary president of the senate and
    29  post such plan on its website.
    30    3. The measures and actions considered in such scoping plan shall at a
    31  minimum include:
    32    (a) performance-based standards for mobile sources  of  regulated  air
    33  contaminants;
    34    (b)  market-based  mechanisms to reduce emissions from mobile sources,
    35  including:
    36    (i) the imposition of fees per unit of regulated air contaminant;
    37    (ii) a zoned surcharge system on trucking and ports; and
    38    (iii) congestion pricing;
    39    (c) the creation of low emission zones and  the  policies  to  promote
    40  zero-emission  and  low-emission  transportation  options, including the
    41  electrification of port facilities and freight transportation; and
    42    (d) land-use and transportation planning measures  aimed  at  reducing
    43  emissions from mobile sources.
    44    4.  No  later than three years after the effective date of this title,
    45  the department, after public workshops and consultation with the working
    46  group, representatives of regulated entities,  and  other  stakeholders,
    47  and  not less than two public hearings, shall promulgate rules and regu-
    48  lations to accelerate the reduction of regulated air  contaminants  from
    49  mobile sources.
    50    (a)  The  regulations  promulgated  by the department pursuant to this
    51  subdivision may include legally enforceable emissions  limits,  perform-
    52  ance  standards,  market-based  mechanisms or measures or other require-
    53  ments to control regulated air contaminant emissions from mobile  sourc-
    54  es. The commissioner is hereby authorized to establish any such policies
    55  pursuant to this section.
    56    (b) In promulgating these regulations, the department shall:

        S. 3616                             8
 
     1    (i)  design and implement all regulations in a manner that seeks to be
     2  equitable, to minimize costs and to maximize the total benefits  to  the
     3  state;
     4    (ii) ensure that emissions reductions achieved are real, quantifiable,
     5  verifiable, and enforceable by the department;
     6    (iii) ensure that activities undertaken to comply with the regulations
     7  do not disproportionately burden disadvantaged communities;
     8    (iv)  prioritize  measures  to maximize net reductions of emissions in
     9  disadvantaged communities;
    10    (v) prioritize measures that encourage early action  to  reduce  emis-
    11  sions; and
    12    (vi) minimize emissions leakage.
    13    5.  If  any  of the policies implemented by the department pursuant to
    14  this section generate state revenue, the department shall  ensure  that,
    15  at  a  minimum,  forty  percent of any funds collected are invested in a
    16  manner which will benefit disadvantaged communities, consistent with the
    17  purposes of this title. The department shall consult  with  the  working
    18  group in developing and carrying out such investments.
    19  § 19-1313 Reporting.
    20    1.  Not  later  than  three years following the effective date of this
    21  title, and every two years thereafter, the commissioner, in  partnership
    22  with  the working group, shall produce a report on the implementation of
    23  the policies established under this title. Such  report  shall  include,
    24  but not be limited to:
    25    (a)  the  effectiveness  of the fees established in section 19-1305 of
    26  this title to reduce regulated air  contaminants  statewide  and  within
    27  geographic subdivisions of the state;
    28    (b)  the  effectiveness  of  the  policies  established  under section
    29  19-1311 of this title to reduce regulated air contaminants  from  mobile
    30  sources statewide and within geographic subdivisions of the state;
    31    (c) an overview of social benefits from the regulations or other meas-
    32  ures  established  pursuant to this title, including reductions in regu-
    33  lated air contaminants, and other benefits to the economy,  environment,
    34  and public health, including women's health;
    35    (d) an overview of compliance costs for regulated entities;
    36    (e)  an  overview of administrative costs for the department and other
    37  state agencies;
    38    (f) whether the fees established in this title are equitable, minimize
    39  costs and maximize the total benefits to the state;
    40    (g) recommendations as to changes that should be made  to  any  policy
    41  promulgated  pursuant  to  this  title, including the methodology estab-
    42  lished under section 19-1303 of this title, and  the  implementation  of
    43  the fees established under section 19-1305 of this title; and
    44    (h) recommendations for future regulatory actions pertaining to reduc-
    45  ing regulated air contaminants from mobile and stationary sources.
    46    2.  Before  finalizing  the  report described in subdivision 1 of this
    47  section, the commissioner shall ensure that there are meaningful  oppor-
    48  tunities for public participation, including by:
    49    (a)  allowing  at  least one hundred twenty days for the submission of
    50  public comment, following the date of the publication of a draft report;
    51  and
    52    (b) holding at least four  regional  public  hearings,  including  two
    53  meetings in the upstate region and two meetings in the downstate region,
    54  with  emphasis on maximizing participation and accessibility for members
    55  of disadvantaged communities.

        S. 3616                             9
 
     1    3. The final report shall be submitted to the governor, the  temporary
     2  president of the senate, the speaker of the assembly, the minority lead-
     3  er  of  the senate and the minority leader of the assembly, and shall be
     4  posted on the website of the department.
     5    §  4.  The  environmental  conservation law is amended by adding a new
     6  article 74 to read as follows:
     7                                 ARTICLE 74
     8                               CLIMATE CHANGE
     9  Section 74-0101. Definitions.
    10          74-0103. Climate justice working group.
    11  § 74-0101. Definitions.
    12    For the purposes of this article the following terms  shall  have  the
    13  following meanings:
    14    1.  "Climate  justice working group" or "working group" shall mean the
    15  body created under section 74-0103 of this article.
    16    2. "Department" means the department of environmental conservation.
    17    3.  "Disadvantaged communities" means communities that bear burdens of
    18  negative public health effects, environmental pollution, and impacts  of
    19  climate  change,  and possess certain socioeconomic criteria, as identi-
    20  fied pursuant to section 74-0103 of this article.
    21    4. "Greenhouse gas" shall have the same meaning as in subdivision 8 of
    22  section 19-1301 of this chapter.
    23    5. "Regulated air contaminant" shall  have  the  same  meaning  as  in
    24  subdivision 22 of section 19-0107 of this chapter.
    25  § 74-0103. Climate justice working group.
    26    1.    (a) There is hereby created within the department, no later than
    27  six months after the effective date of this article, a  climate  justice
    28  working  group.  Such working group will be comprised of representatives
    29  from: environmental justice communities, the department, the  department
    30  of health, the New York state energy research and development authority,
    31  and the department of labor. In addition to any other functions assigned
    32  to  the  working  group  in  this  article, the working group shall also
    33  perform the functions assigned to the working  group  as  set  forth  in
    34  title  13  of article 19 of this chapter, article 25-D of the labor law,
    35  title 9-B of article 8 of the public authorities law,  and  articles  42
    36  and 43 of the tax law.
    37    (b)  Environmental  justice community representatives shall be members
    38  of communities of color, low-income communities, and communities bearing
    39  disproportionate pollution and  climate  change  burdens,  or  shall  be
    40  representatives  of  community-based organizations with experience and a
    41  history of advocacy on environmental justice issues, and  shall  include
    42  at  least  five  representatives  from  New York city communities, three
    43  representatives from upstate urban  communities,  three  representatives
    44  from  upstate  rural and suburban communities, and three representatives
    45  from Nassau, Suffolk, Westchester and Rockland counties. The department,
    46  in consultation with the working group, shall establish  draft  criteria
    47  to identify disadvantaged communities.
    48    (c) Disadvantaged communities shall be identified based on geographic,
    49  public  health, environmental hazards, and socioeconomic criteria, which
    50  shall include, but are not limited to:
    51    (i) areas burdened by cumulative  environmental  pollution  and  other
    52  hazards that can lead to negative public health effects;
    53    (ii)  areas  with  concentrations  of people that are low income, high
    54  unemployment, have high rent burdens, have low levels of home ownership,
    55  have low levels of educational attainment, or are members of groups that

        S. 3616                            10
 
     1  have historically experienced discrimination on the  basis  of  race  or
     2  ethnicity; and
     3    (iii) areas vulnerable to the impacts of climate change such as flood-
     4  ing, storm surges, and urban heat island effects.
     5    2. Before finalizing the criteria for identifying disadvantaged commu-
     6  nities,  the department shall publish draft criteria and a draft list of
     7  disadvantaged communities and make such  information  available  on  its
     8  website.
     9    (a)  The department shall hold at least seven regional public hearings
    10  on the draft criteria and the draft list of  disadvantaged  communities,
    11  including  three  hearings  in the upstate region, three hearings in the
    12  downstate region, and one meeting in either Nassau or  Suffolk  counties
    13  and  shall  allow at least one hundred twenty days for the submission of
    14  public comment. For the purposes of this paragraph, the term  "downstate
    15  region"  shall  mean  the counties of Richmond, Kings, Queens, New York,
    16  Bronx and Westchester, and the term  "upstate  region"  shall  mean  all
    17  other New York state counties other than Nassau and Suffolk.
    18    (b)  The  department  shall  ensure that there are meaningful opportu-
    19  nities for public comment for all persons who will be  impacted  by  the
    20  criteria,  including  persons  living in areas that may be identified as
    21  disadvantaged communities under the proposed criteria.
    22    3. After following the procedures set forth in subdivisions 1 and 2 of
    23  this section, the department shall  establish  final  criteria  and  the
    24  final  list  of  disadvantaged  communities,  and  make such information
    25  available on its website.
    26    4. The working group will meet at least annually to review the method-
    27  ology used to identify disadvantaged communities by, among other things,
    28  incorporating new data and scientific findings. The  working  group  may
    29  advise  the  department  to  modify  its  methodology, criteria or list.
    30  Following a meeting of the working group, the department may modify  its
    31  methodology,  criteria or list. Before the department modifies its meth-
    32  odology, criteria or list, it shall provide for meaningful opportunities
    33  for public comment as to any such modification.
    34    § 5. The labor law is amended by adding a new article 8-B to  read  as
    35  follows:
    36                                 ARTICLE 8-B
    37                LABOR AND JOB STANDARDS AND WORKER PROTECTION
    38  Section 228. Labor and job standards and worker protection.
    39    §  228.  Labor  and job standards and worker protection.  1. All state
    40  agencies involved in implementing the climate and  community  investment
    41  act  shall assess and implement strategies to increase employment oppor-
    42  tunities and improve job quality.  Within one hundred twenty days of the
    43  effective date of this article, all state  agencies,  offices,  authori-
    44  ties, and divisions shall report to the legislature on:
    45    (a) Steps they will take to ensure compliance with this section; and
    46    (b) Regulations necessary to ensure that they prioritize the statewide
    47  goal of creating good jobs and increasing employment opportunities.
    48    2.   In   considering  and  issuing  permits,  licenses,  regulations,
    49  contracts, and other administrative approvals and decisions pursuant  to
    50  the climate and community investment act and in otherwise dispersing any
    51  proceeds from the fee established in section three thousand forty of the
    52  tax  law,  all state agencies, offices, authorities, and divisions shall
    53  apply the following labor, training, and job quality standards to public
    54  works projects in receipt of more than one hundred thousand  dollars  in
    55  total financial assistance; projects with a total value of more than ten
    56  million dollars; and privately-financed projects on public property:

        S. 3616                            11
 
     1    (a)  the payment of no less than prevailing wages for all employees in
     2  construction and building, consistent with article eight of  this  chap-
     3  ter,  and  building services, consistent with article nine of this chap-
     4  ter;
     5    (b) the inclusion of contract language requiring contractors to estab-
     6  lish  labor  harmony policies; dispute resolution mechanisms; prevailing
     7  wage  compliance;  safety  policies;  workers   compensation   insurance
     8  (including  review  of  contractor experience rating and other factors);
     9  and apprenticeship programs appropriate for crafts employed. Procurement
    10  rules should encourage bundling  of  small  contracts  and  projects  to
    11  improve the efficiency of compliance;
    12    (c)  a  requirement that all contractors and subcontractors, including
    13  those that participate in power purchase agreements, energy  performance
    14  contracts,  or  other  similar  programs,  participate in apprenticeship
    15  programs in the trades in which they are  performing  work;  that  there
    16  shall  be  the  maximum  use  of  apprentices as per department of labor
    17  approved ratios; that there shall be encouragement of affiliated pre-ap-
    18  prentice direct entry programs,  including,  but  not  limited  to,  EJM
    19  construction  skills,  New  York city Helmets to Hardhats, and Nontradi-
    20  tional Employment for Women (NEW) for the recruitment  of  local  and/or
    21  disadvantaged workers; and that existing workforce development programs,
    22  including  those  at  the New York state energy research and development
    23  authority, should be made to conform to these standards.
    24    3. The commissioner, the fiscal officer and  other  relevant  agencies
    25  shall  promulgate  such  regulations  as  are necessary to implement and
    26  administer compliance with the provisions of this article.  The  depart-
    27  ment  and  the  fiscal officer shall coordinate with labor organizations
    28  and local and county level governments to implement a  system  to  track
    29  compliance, accept reports of non-compliance for enforcement action, and
    30  report  annually  on  the adoption of these standards to the legislature
    31  starting one year from the effective date of  this  section.    For  the
    32  purposes of this subdivision, "fiscal officer" shall mean the industrial
    33  commissioner,   except   for  construction  and  building  service  work
    34  performed by or on behalf of a city,  in  which  case  "fiscal  officer"
    35  shall mean the comptroller or other analogous officer of such city.
    36    (a)  The  provisions  of  any  contract  by the recipient of financial
    37  assistance pertaining  to  prevailing  wages  are  to  be  considered  a
    38  contract  for  the benefit of construction and building service workers,
    39  upon which such workers shall have the right to maintain action for  the
    40  difference  between  the prevailing wage rate of pay, benefits, and paid
    41  leave and the rates of pay, benefits, and paid leave  actually  received
    42  by them, including attorneys' fees.
    43    (b)  (i)  Where a recipient of financial assistance contracts building
    44  service work to a building service contractor, the contractor is held to
    45  the same obligations with respect to prevailing wages as the  recipient.
    46  The recipient must include terms establishing this obligation within any
    47  contract signed with a contractor.
    48    (ii)   Where   a  recipient  of  financial  assistance  contracts  for
    49  construction,  excavation,  demolition,  rehabilitation,  repair,  reno-
    50  vation,  alteration or improvement to a subcontractor, the subcontractor
    51  shall be held to the same obligations with respect to  prevailing  wages
    52  as  the  recipient.  The  recipient must include terms establishing this
    53  obligation within any contract signed with a subcontractor.
    54    4. For the purposes of this section, "financial assistance" means  any
    55  provision  of  public  funds  to any person, individual, proprietorship,
    56  partnership, joint  venture,  corporation,  limited  liability  company,

        S. 3616                            12
 
     1  trust,  association,  organization, or other entity that receives finan-
     2  cial assistance, or any assignee or successor in interest of real  prop-
     3  erty  improved  or  developed  with  financial  assistance, for economic
     4  development within the state, including but not limited to cash payments
     5  or  grants,  bond financing, tax abatements or exemptions, including but
     6  not limited to abatements or exemptions  from  real  property,  mortgage
     7  recording,  sales  and use taxes, or the difference between any payments
     8  in lieu of taxes and the amount of real property  or  other  taxes  that
     9  would  have  been due if the property were not exempted from such taxes,
    10  tax increment financing, filing fee  waivers,  energy  cost  reductions,
    11  environmental  remediation  costs,  write-downs  in  the market value of
    12  buildings or land, or the cost of capital improvements related  to  real
    13  property  for  which  the  state  would  not  pay absent the development
    14  project, and includes both discretionary and as of right assistance. The
    15  provisions of this section shall only apply to projects  receiving  more
    16  than  one  hundred  thousand  dollars  in  total  financial  assistance,
    17  projects with a total project value of more than ten million dollars and
    18  privately-financed projects on public property.
    19    5. The commissioner shall evaluate whether there are additional stand-
    20  ards that could be applied to increase wage and benefit standards or  to
    21  encourage a safe, well-trained, and adequately compensated workforce.
    22    6. The commissioner, in consultation with the regional economic devel-
    23  opment  councils,  shall promulgate such regulations and enter into such
    24  agreements as are necessary to enforce community  workforce  agreements,
    25  project labor agreements or community benefits agreements that include:
    26    (a) local and targeted hiring standards;
    27    (b)  the utilization of minority- or women-owned business enterprises;
    28  and
    29    (c) any relevant additional standards provided for  in  this  section.
    30  For the purposes of this subdivision, a "minority- or woman-owned enter-
    31  prise"  shall have the same meaning as subdivision five of section nine-
    32  teen hundred five of the public authorities law.
    33    7. The department shall develop agreements in the  region  and  ensure
    34  that the standards under this article are applied to all projects in the
    35  region  receiving  financial assistance from any program pursuant to the
    36  climate and community investment act.  The  regulations  promulgated  in
    37  such  article  shall  provide that projects over one million dollars may
    38  negotiate their own  project  labor  agreements  or  community  benefits
    39  agreements  with  municipalities and constituency based organizations as
    40  parties.
    41    8. Nothing set forth in this section shall  be  construed  to  impede,
    42  infringe,  or diminish the rights and benefits which accrue to employees
    43  through bona fide collective bargaining agreements, or otherwise  dimin-
    44  ish the integrity of the existing collective bargaining relationship.
    45    9. Nothing set forth in this section shall preclude a local government
    46  from  setting additional standards that expand on these statewide stand-
    47  ards.
    48    § 6. The labor law is amended by adding a new article 25-D to read  as
    49  follows:
    50                                 ARTICLE 25-D
    51           CLIMATE CHANGE JUST TRANSITION FOR IMPACTED WORKERS AND
    52                             COMMUNITY ASSURANCE
    53  Section 863. Definitions.
    54          863-a. Worker and community assurance board.
    55          863-b. Establishment of worker and community assurance program.
    56          863-c. Administration by the commissioner.

        S. 3616                            13
 
     1          863-d. Allocation of funds.
     2          863-e. Selection process.
     3          863-f. Designation of significant impact.
     4          863-g. Reporting.
     5    §  863.  Definitions.  For the purposes of this article, the following
     6  terms shall have the following meanings:
     7    1. "Authority" shall have the same meaning as in  subdivision  two  of
     8  section eighteen hundred fifty-one of the public authorities law.
     9    2.  "Board" means the worker and community assurance board established
    10  under this article.
    11    3. "Chair" means the chair of the authority.
    12    4. "Commissioner" means the commissioner of the department of labor.
    13    5. "Constituency-based organization" shall have the same meaning as in
    14  subdivision three of section eighteen hundred ninety-one of  the  public
    15  authorities law.
    16    6. "Department" means the department of labor.
    17    7. "Director" means the director of the office of climate and communi-
    18  ty  investment  established  under  title nine-B of article eight of the
    19  public authorities law.
    20    8. "Disadvantaged communities" means communities that bear burdens  of
    21  negative  public  health effects, environmental pollution and impacts of
    22  climate change, and possess certain socioeconomic criteria,  as  identi-
    23  fied pursuant to section 74-0103 of the environmental conservation law.
    24    9.  "Displaced  worker"  means  an individual who is a resident of New
    25  York state and has been terminated or has received a  notice  of  termi-
    26  nation as a result of a permanent facility closure.
    27    10.  "Eligible applicant" means a municipality, labor union, community
    28  college,  local  school  district,  or  constituency-based  organization
    29  located in an impacted community.
    30    11.  "Greenhouse  gas"  shall  have the same meaning as in subdivision
    31  eight of section 19-1301 of the environmental conservation law.
    32    12. "Labor organization" means any organization which  exists  and  is
    33  constituted for the purpose, in whole or in part, of collective bargain-
    34  ing, or of dealing with employers concerning grievances, terms or condi-
    35  tions  of  employment, or of other mutual aid or protection and which is
    36  not a company union as defined herein.
    37    13. "Permanent facility closure" means the  permanent  shutdown  of  a
    38  single  site of employment, or one or more facilities or operating units
    39  within a single site of  employment,  if  the  shutdown  results  in  an
    40  employment  loss  at the single site of employment during any thirty-day
    41  period.
    42    14. "Program" means the worker and community assurance program  estab-
    43  lished under this article.
    44    15. "Trust" means the worker and community assurance trust established
    45  under  subdivision  four  of section three thousand forty-six of the tax
    46  law.
    47    16. "Working group" means the climate justice  working  group  created
    48  pursuant to section 74-0103 of the environmental conservation law.
    49    § 863-a. Worker and community assurance board. There is hereby created
    50  no  later  than  six  months after the effective date of this article, a
    51  "worker and community assurance board". Such board will be comprised of:
    52  the commissioner, the state comptroller, the  commissioner  of  environ-
    53  mental conservation, the chair, two members of constituency-based organ-
    54  izations,  two representatives of labor organizations, and one represen-
    55  tative expert in economic development. The board shall be chaired by the
    56  commissioner.

        S. 3616                            14
 
     1    § 863-b. Establishment of  worker  and  community  assurance  program.
     2  There  is  hereby  established  within  the department, a program, to be
     3  implemented by the commissioner. The purpose of the program is to:
     4    1.  disburse  funds  from  the  trust,  pursuant  to  this section and
     5  sections eight hundred sixty-three-d and eight hundred sixty-three-e  of
     6  this article;
     7    2.  provide support for displaced workers, either directly, or through
     8  programs administered by eligible  applicants,  for  up  to  five  years
     9  including,  but  not  limited  to: employment guarantees; retraining and
    10  placement in public or private sector positions; income support; pension
    11  support; early retirement; transitional support including but not limit-
    12  ed to skills training, job counseling, tuition support,  and  on-the-job
    13  training; and support for impacted workers to start employee-owned busi-
    14  nesses.  Early  retirement  or  income support, at a comparable level to
    15  their lost wages, shall be offered whenever  possible.  Each  individual
    16  displaced worker will receive at least one form of such assistance.
    17    3.  provide  support  for  communities either through local government
    18  entities or non-profits to replace lost payment in-lieu-of taxes (PILOT)
    19  and local tax revenue, revenue raised by or paid  by  the  state  or  an
    20  employer  to  municipalities  or  school  districts  (including, but not
    21  limited to, central school districts and  city  school  districts),  and
    22  other  public  funding  that  is being lost as a result of the displaced
    23  facilities; and
    24    4. facilitate the expansion of existing economic development  programs
    25  to  enable  communities  to respond to permanent facility closure and/or
    26  major reductions in property taxes or PILOT payments. This can  include,
    27  but  is  not limited to: support for incumbent impacted workers to start
    28  employee-owned businesses in host communities;  and  support  for  other
    29  elements  of  the clean, renewable energy transition, such as deployment
    30  of energy storage, renewable energy generation, electrical  transmission
    31  facilities,  resiliency  measures,  and other infrastructure projects in
    32  communities where energy-intensive facilities are closing.
    33    § 863-c. Administration by the commissioner. Within six months of  the
    34  effective  date  of  this article, the commissioner is hereby authorized
    35  and directed to establish the worker and  community  assurance  program.
    36  The  commissioner  shall  implement the program in consultation with the
    37  board and shall:
    38    1. use monies made available for the program pursuant to section eight
    39  hundred sixty-three-b of this article to achieve  the  purposes  of  the
    40  program;
    41    2.  enter  into  contracts with eligible applicants and other entities
    42  through the competitive selection process authorized by this article;
    43    3. enter into contracts with  one  or  more  program  implementers  to
    44  perform such functions as the authority deems appropriate; and
    45    4. exercise such other powers as are necessary for the proper adminis-
    46  tration of the program.
    47    §  863-d. Allocation of funds. Funds from the trust shall be disbursed
    48  under the program and be used to ensure a stable transition for  workers
    49  and communities impacted by the transition to a carbon free economy.
    50    § 863-e. Selection process. The director is authorized, within amounts
    51  appropriated,  to  disburse  funds from the trust on a competitive basis
    52  for approved projects to eligible applicants and partners.
    53    1. The director, in partnership with the working group, shall  develop
    54  criteria  and  a  process  for  selecting project proposals submitted by
    55  eligible applicants under this article.

        S. 3616                            15
 
     1    2. Proposals should clearly articulate: the programs to be  supported;
     2  the  number  of workers impacted; overall expected funding level; a plan
     3  to engage the people most affected by the transition, including  workers
     4  and  community  members;  a  plan for any necessary site remediation and
     5  economic  development; and a plan to ensure that funding is time limited
     6  to no more than ten years of direct support from the trust.
     7    3. The commissioner shall give priority  to  proposals  from  eligible
     8  applicants that address workers in energy intensive industries that have
     9  significant  employment  and  tax  base impacts in affected communities,
    10  pursuant to title nine-B of article eight of the public authorities law.
    11    4. In developing the criteria, the commissioner and  the  board  shall
    12  attempt to maximize: the number of people from affected communities that
    13  will benefit from any implemented project and from the suite of projects
    14  across  the program; the degree of direct benefits delivered to affected
    15  communities; greenhouse gas and emissions reductions for  regulated  air
    16  contaminants;  and,  to  the  extent possible, the leveraging of private
    17  capital.
    18    5. The commissioner shall encourage  eligible  applicants  to  propose
    19  projects  in partnership with other eligible applicants, and in partner-
    20  ship with third-party entities.
    21    6. Where possible, the commissioner shall aim to distribute  funds  in
    22  an equitable manner by region of the state.
    23    7.  If  adequate  funding  is available, the commissioner may consider
    24  proposals related to other impacts associated with climate  change  that
    25  have the effect of causing job losses, including climate-related natural
    26  disasters.
    27    8.  The commissioner shall allocate funding annually, or as determined
    28  appropriate by the commissioner for ensuring continuous funding for  the
    29  needs of the chosen programs and projects.
    30    §  863-f.  Designation  of significant impact. 1. The commissioner, in
    31  cooperation with the board and working group, shall  establish  criteria
    32  to  determine  when  an  industry has become significantly impacted as a
    33  direct result of policies to reduce greenhouse gas emissions in New York
    34  state. The commissioner shall identify an initial set of industries that
    35  are significantly impacted as a direct  result  of  emissions  reduction
    36  policies for the purposes of implementing this section.
    37    2.  In  designing the criteria and listing the industries described in
    38  subdivision one of this section, the commissioner shall consider factors
    39  such as:
    40    (a) permanent facility closures or the  closure  of  businesses  as  a
    41  result  of  regulatory  changes  related  to  the  climate and community
    42  investment act;
    43    (b) significant job losses across an industry as a result  of  techno-
    44  logical  change  in order to achieve greenhouse gas emission reductions;
    45  or
    46    (c) loss of property tax or school tax  revenue  that  would  lead  to
    47  local  layoffs  or  service reductions as a result of regulatory changes
    48  related to such act.
    49    3. Before finalizing the criteria for identifying industries that  are
    50  significantly  impacted  as a direct result of climate change policy and
    51  identifying a list of  significantly  impacted  industries  pursuant  to
    52  subdivision  one  of  this  section,  the commissioner shall ensure that
    53  there are meaningful opportunities  for  public  comment,  including  by
    54  persons  working  in  potentially  significantly impacted industries and
    55  persons that may be identified as part of affected communities  pursuant

        S. 3616                            16
 
     1  to  title nine-B of article eight of the public authorities law, includ-
     2  ing by:
     3    (a)  publishing  draft  criteria  and  a  draft  list of significantly
     4  impacted industries, and making such information available on the inter-
     5  net;
     6    (b) holding at least six regional public hearings on the draft  crite-
     7  ria  and  the draft list of significantly impacted industries, including
     8  at least three meetings in the upstate region and three meetings in  the
     9  downstate region; and
    10    (c)  allowing  at  least one hundred twenty days for the submission of
    11  public comment, following the date of the publication of draft  criteria
    12  described in paragraph (a) of this subdivision.
    13    4.  The  commissioner,  in  cooperation with the board and the working
    14  group shall meet no less than annually to review the criteria and  meth-
    15  ods  used  to identify significantly impacted industries, and may modify
    16  such methods to incorporate new data and scientific findings, subject to
    17  the same process requirements listed under  subdivision  three  of  this
    18  section.
    19    5. An industry that has been significantly impacted as a direct result
    20  of  climate  change  policy,  or  workers  in  an industry that has been
    21  significantly impacted as a direct result of climate change  policy  may
    22  also be identified based on a petition from a municipality, labor union,
    23  or constituency-based organization located in or adjacent to an impacted
    24  community.
    25    § 863-g. Reporting. 1. No later than two years following the effective
    26  date  of this article, and every two years thereafter, the commissioner,
    27  in partnership with the working group, shall produce  a  report  on  the
    28  implementation  of  the  program  established under this article and the
    29  extent to which program implementation is meeting stated  program  goals
    30  and priorities. Such report shall include but not be limited to:
    31    (a)  reporting  on the effectiveness of the policies established under
    32  this article to the legislature and  public  on  the  job  creation  and
    33  retention impacts;
    34    (b)  an  overview of social benefits pursuant to the implementation of
    35  this section, including benefits to the economy, environment, and public
    36  health, including women's health;
    37    (c) an overview of administrative costs for the department  and  other
    38  state agencies;
    39    (d) recommendations for future policy pertaining to transition assist-
    40  ance; and
    41    (e)  data  identifying  both  who submitted petitions and who received
    42  support from the program and why.
    43    2. Before finalizing the report described in subdivision one  of  this
    44  section,  the commissioner shall ensure that there are meaningful oppor-
    45  tunities for public participation, including by:
    46    (a) allowing at least one hundred twenty days for  the  submission  of
    47  public comment, following the date of the publication of a draft report;
    48  and
    49    (b)  holding  at  least  four  regional public hearings, including two
    50  meetings in the upstate region and two meetings in the downstate region,
    51  with emphasis on maximizing participation and accessibility for  members
    52  of disadvantaged communities.
    53    3.  The final report shall be submitted to the governor, the temporary
    54  president of the senate, the speaker of the assembly, the minority lead-
    55  er of the senate and the minority leader of the assembly, and  shall  be
    56  posted on the website of the department.

        S. 3616                            17
 
     1    §  7.  Article  8 of the public authorities law is amended by adding a
     2  new title 9-B to read as follows:
 
     3                                  TITLE 9-B
     4                       CLIMATE CHANGE JUST TRANSITION
     5                                 SUBTITLE I
     6                             GENERAL PROVISIONS
     7  Section 1901. Definitions.
     8          1902. Coordination of programs.
     9          1903. Transparency and accountability.
    10          1904. Report on community ownership.
 
    11                                 SUBTITLE II
    12                          COMMUNITY JUST TRANSITION
    13  Section 1905. Definitions.
    14          1906. Office of climate and community investment.
    15          1907. Establishment of community just transition program.
    16          1908. Administration by the authority.
    17          1909. Allocation of funds.
    18          1910. Selection process.
    19          1911. Identification of disadvantaged community needs.
    20          1912. Community decision-making and accountability mechanisms.
    21          1913. Criteria  for  implementing community accountability mech-
    22                  anisms.
    23          1914. Consultation with the working group.
 
    24                                SUBTITLE III
    25                       CLIMATE JOBS AND INFRASTRUCTURE
    26  Section 1915. Definitions.
    27          1916. Establishment of climate jobs and infrastructure program.
    28          1917. Administration by the authority.
    29          1918. Allocation of funds.
    30          1919. Funding instruments.
    31          1920. Selection process and criteria.
    32          1921. Consultation with the advisory council.
    33          1922. Comprehensive approach to existing structures.
    34    § 1901. Definitions. For the purposes of this subtitle, the  following
    35  terms shall have the following meanings:
    36    1.  "Advisory  council"  means  the advisory council established under
    37  title nine-A of this article.
    38    2. "Authority" shall have the same meaning as in  subdivision  two  of
    39  section eighteen hundred fifty-one of this article.
    40    3. "Constituency-based organization" shall have the same meaning as in
    41  subdivision  three  of section eighteen hundred ninety-one of this arti-
    42  cle.
    43    4. "Regulated air contaminant" shall  have  the  same  meaning  as  in
    44  subdivision twenty-two of section 19-0107 of the environmental conserva-
    45  tion law.
    46    5. "Director" means the director of the office of climate and communi-
    47  ty investment established under this title.
    48    6.  "Disadvantaged communities" means communities that bear burdens of
    49  negative public health effects, environmental pollution, and impacts  of
    50  climate  change,  and possess certain socioeconomic criteria, as identi-
    51  fied pursuant to section 74-0103 of the environmental conservation law.

        S. 3616                            18
 
     1    7. "Emissions leakage" means an increase in emissions outside  of  the
     2  state,  as  a  result  of, or in correlation with, the implementation of
     3  measures within the state to limit such emissions.
     4    8.  "Greenhouse  gas"  shall  have  the same meaning as in subdivision
     5  eight of section 19-1301 of the environmental conservation law.
     6    9. "Office" means the  office  of  climate  and  community  investment
     7  established under this title.
     8    10.  "Municipality"  shall have the same meaning as in subdivision six
     9  of section four hundred eighty-one of the executive law.
    10    11. "President" means the president of the authority.
    11    12. "Tribal nation" means those tribes,  nations  or  other  organized
    12  groups of persons having origins in any of the original peoples of North
    13  America  recognized  in the state or considered by the federal secretary
    14  of the interior to be a tribal nation, including the following New  York
    15  state tribal nations: Cayuga Nation, Oneida Nation of New York, Onondaga
    16  Nation, Poospatuck or Unkechauge Nation, Saint Regis Mohawk Tribe, Sene-
    17  ca Nation of Indians, Shinnecock Indian Nation, Tonawanda Band of Seneca
    18  and Tuscarora Nation.
    19    13.  "Working  group"  means the climate justice working group created
    20  pursuant to section 74-0103 of the environmental conservation law.
    21    14. "Community ownership" means projects, businesses and legal  models
    22  in  regard to renewable energy assets and services that allow for one or
    23  more of the following:
    24    (a) the flow of benefits from energy generation and conservation  goes
    25  directly  to  communities  and  utility  customers  while minimizing the
    26  extraction of benefits and profit by third-parties;
    27    (b) access to energy infrastructure ownership, including energy  effi-
    28  ciency  measures  and savings, by renters, non-profit organizations, and
    29  individuals with a broader spectrum of income and credit  profiles  than
    30  traditional financing allows for;
    31    (c)  creation  of  cooperative and cooperative-like structures for the
    32  development and ownership of energy infrastructure; and
    33    (d) ownership by individuals or organizations that are located where a
    34  project is sited.
    35    § 1902.   Coordination of  programs.  The  authority  shall  undertake
    36  actions  to  ensure  maximum  coordination  between each of the programs
    37  created under section three thousand forty-six of the tax  law,  includ-
    38  ing:
    39    1. conducting each program such that all three programs together:
    40    (a) maximize the total economic and social benefits to New York;
    41    (b) maximize administrative efficiency;
    42    (c)  achieve  the  most  cost-effective  and  the  greatest  amount of
    43  reductions in greenhouse gas emissions and regulated air contaminants;
    44    (d) achieve an equitable distribution of funds;
    45    (e) maximize benefits to disadvantaged communities;
    46    (f) encourage early action to reduce emissions; and
    47    (g) minimize emissions leakage.
    48    2. Not less frequently than two times annually,  the  authority  shall
    49  convene a meeting that includes the director, the working group, and the
    50  advisory  council,  to discuss options for improving the coordination of
    51  the three programs.
    52    3. In consulting with the  working  group  and  the  advisory  council
    53  pursuant  to  this  section, the authority shall adhere to the following
    54  procedures:

        S. 3616                            19
 
     1    (a) The authority shall provide, to all  working  group  and  advisory
     2  council members, notice of meetings not less than thirty days before the
     3  date of the meeting; and
     4    (b)  The  authority  shall  provide, to all working group and advisory
     5  council members, electronic copies or hard  copies  of  any  written  or
     6  other  informational  materials  to  be discussed at a given meeting not
     7  less than thirty days prior to the date of that meeting.
     8    § 1903. Transparency and accountability.  1. No later than  two  years
     9  following  the  effective date of this title, and every two years there-
    10  after, the director,  in  partnership  with  the  working  group,  shall
    11  produce a report on the implementation of the programs established under
    12  this  title  and  the  extent to which program implementation is meeting
    13  stated program goals and priorities. Such report shall include  but  not
    14  be limited to:
    15    (a) For the program under subtitle two of this title:
    16    (i)  the  extent to which needs identified in the needs assessment are
    17  being met;
    18    (ii) the effectiveness of projects funded under the program in  reduc-
    19  ing emissions of greenhouse gas and regulated air contaminants;
    20    (iii) the effectiveness of projects funded under the program in reduc-
    21  ing the energy burdens of households in disadvantaged communities;
    22    (iv) the geographic distribution of grants made under the program;
    23    (v) barriers reported by eligible applicants in developing competitive
    24  proposals and receiving funding;
    25    (vi)  the  jobs  created  as  a  result of funds distributed under the
    26  program;
    27    (vii) the number of projects funded that are community-owned or incor-
    28  porate community ownership, including an assessment of continued  barri-
    29  ers to community ownership.
    30    (b) For the program under subtitle three of this title:
    31    (i) the number of jobs created by the program;
    32    (ii)  the effectiveness of projects funded under the program in reduc-
    33  ing emissions of greenhouse gas and regulated air contaminants;
    34    (iii) the extent to which projects funded under the program  leveraged
    35  additional private investment;
    36    (iv)  the  number  of  minority and women-owned businesses involved in
    37  projects funded under the program as lead contractors or subcontractors,
    38  and barriers to involvement by such businesses;
    39    (v) the effectiveness of projects funded under the program in reducing
    40  energy burdens of  households,  including  households  in  disadvantaged
    41  communities.
    42    (c)  For  the  program under articles forty-two and forty-three of the
    43  tax law:
    44    (i) the actual costs of the fee as  compared  to  the  amount  of  the
    45  rebate;
    46    (ii) the overall net cost to households;
    47    (iii)  the rate of participation in the program by eligible households
    48  and the barriers to participation, if any.
    49    2. Before finalizing the report described in subdivision one  of  this
    50  section,  the  director  shall ensure that there are meaningful opportu-
    51  nities for public participation, including by:
    52    (a) allowing at least one hundred twenty days for  the  submission  of
    53  public comment, following the date of the publication of a draft report;
    54  and
    55    (b)  holding  at  least  four  regional public hearings, including two
    56  meetings in the upstate region and two meetings in the downstate region,

        S. 3616                            20
 
     1  with emphasis on maximizing participation and accessibility for  members
     2  of disadvantaged communities.
     3    3.  The final report shall be submitted to the governor, the temporary
     4  president of the senate, the speaker of the assembly, the minority lead-
     5  er of the senate and the minority leader of the assembly, and  shall  be
     6  posted on the website of the authority.
     7    §  1904.  Report  on community ownership.  1. Not later than two years
     8  following the effective date of this subtitle, and every two years ther-
     9  eafter, the authority, with input from  the  working  group,  the  state
    10  energy  planning board and the department of environmental conservation,
    11  shall produce a report on barriers to, and opportunities for,  community
    12  ownership, including:
    13    (a) a study of contractual and pricing mechanisms that make siting and
    14  ownership  of  renewable  energy  assets  and  services in disadvantaged
    15  communities more viable and scalable.
    16    (b) recommendations on how to increase community ownership  in  disad-
    17  vantaged communities of the following services and commodities:
    18    (i) distributed renewable energy generation;
    19    (ii) utility scale renewable energy generation;
    20    (iii) energy efficiency and weatherization investments; and
    21    (iv)  electric  grid  investments,  including energy storage and smart
    22  meters.
    23    2. Before finalizing the report described in subdivision one  of  this
    24  section,  the  director  shall ensure that there are meaningful opportu-
    25  nities for public participation, including by:
    26    (a) allowing at least one hundred twenty days for  the  submission  of
    27  public comment, following the date of the publication of a draft report;
    28  and
    29    (b)  holding  at  least  four  regional public hearings, including two
    30  meetings in the upstate region and two meetings in the downstate region,
    31  with emphasis on maximizing participation and accessibility for  members
    32  of disadvantaged communities.
    33    3.  The final report shall be submitted to the governor, the temporary
    34  president of the senate, the speaker of the assembly, the minority lead-
    35  er of the senate and the minority leader of the assembly, and  shall  be
    36  posted on the website of the authority.
    37    §  1905. Definitions. For the purposes of this subtitle, the following
    38  terms shall have the following meanings:
    39    1. "Disadvantaged communities" shall  have  the  same  meaning  as  in
    40  subdivision  three  of section 74-0101 of the environmental conservation
    41  law.
    42    2. "Eligible lead applicant" means a constituency-based  organization,
    43  a tribal nation, or a municipality or county in cases where there is not
    44  a constituency-based organization in or serving the disadvantaged commu-
    45  nity or communities.
    46    3.  "Eligible  sub-applicants" means private sector entities, academic
    47  institutions, non-profit organizations, other stakeholders, and  munici-
    48  palities  and  counties  in  cases  where  there is a constituency-based
    49  organization in the disadvantaged community or communities.
    50    4. "Fund" means the community just transition fund  established  under
    51  subdivision one of section three thousand forty-six of the tax law.
    52    5.  "Minority-  or  women-owned  business  enterprise"  means either a
    53  "minority-owned business enterprise" as defined in subdivision seven  of
    54  section  three hundred ten of the executive law, or a "women-owned busi-
    55  ness enterprise", as defined in subdivision fifteen of such section.

        S. 3616                            21
 
     1    6. "Working group" means the climate justice working group established
     2  under section 74-0103 of the environmental conservation law.
     3    7.  "Program"  means the community just transition program established
     4  under this subtitle.
     5    8. "Community ownership" shall have the same meaning as set  forth  in
     6  subdivision fourteen of section nineteen hundred one of this title.
     7    §  1906.  Office of climate and community investment. 1. The authority
     8  shall establish, not later than six months after the effective  date  of
     9  this  subtitle,  the  "office of climate and community investment". Such
    10  office will administer the fund and the  program,  among  other  duties.
    11  Such  office  shall be responsible for implementing new, progressive and
    12  equitable grant opportunities  that  support  disadvantaged  communities
    13  transitioning  to  a  regenerative  renewable energy economy. The office
    14  will collaborate with the working group to develop and  assess  programs
    15  and,  as needed, with the office of environmental justice of the depart-
    16  ment of environmental conservation.
    17    2. The office will abide by the principles of  environmental  justice,
    18  including  the  1994 federal executive order 12898 (in relation to envi-
    19  ronmental justice) and the Jemez Principles  of  Democratic  Organizing.
    20  Such  principles  shall include: being inclusive; placing an emphasis on
    21  bottom-up organizing;  letting  people  speak  for  themselves;  working
    22  together  in solidarity and mutuality; building just relationships among
    23  ourselves; and making a commitment to self-transformation.
    24    3. The office shall be led by a director. Not later  than  six  months
    25  after  the formation of the working group, the working group shall nomi-
    26  nate not less than three candidates for the position of director.    Not
    27  later  than  three  months  after the working group has nominated candi-
    28  dates, the president shall select the director from this group of candi-
    29  dates.
    30    § 1907. Establishment of community just transition program.  There  is
    31  hereby  established  within  the  authority, a community just transition
    32  program, to be implemented by the director. The purpose of  the  program
    33  is to disburse funds from the community just transition fund pursuant to
    34  section nineteen hundred nine of this subtitle.
    35    §  1908.  Administration  by  the  authority. Within six months of the
    36  effective date of this subtitle, the authority is hereby authorized  and
    37  directed  to  establish  and  administer  the  community just transition
    38  program. The authority shall implement the program in consultation  with
    39  the working group. The authority is authorized and directed to:
    40    1.  use  monies  made  available for the program, pursuant to sections
    41  nineteen hundred nine and nineteen hundred ten of this subtitle;
    42    2. enter into contracts with eligible lead applicants  and  sub-appli-
    43  cants through a competitive selection process;
    44    3.  recover  from  the  monies  made available for the program, not in
    45  excess of two percent of annual fund proceeds,  its  own  necessary  and
    46  documented  costs  incurred  in  administering  the  program,  including
    47  program evaluation, compensation  for  members  of  the  working  group,
    48  compensation for at least one full-time authority staff person dedicated
    49  to supporting the working group; and
    50    4. exercise such other powers as are necessary for the proper adminis-
    51  tration of the program.
    52    §  1909. Allocation of funds. 1. Funds from the community just transi-
    53  tion fund shall be disbursed through  direct  grants  to  eligible  lead
    54  applicants  serving  disadvantaged  communities.  Such  funds  shall  be
    55  disbursed in accordance with subdivisions two and three of this section.

        S. 3616                            22
 
     1    2. At least seventy-five percent of  funds  from  the  community  just
     2  transition fund shall be for projects physically located within a desig-
     3  nated  disadvantaged  community,  and  shall  achieve one or more of the
     4  goals in paragraph (a), (b) or (c) of this subdivision:
     5    (a)  maximizing greenhouse gas emissions reductions, including through
     6  the completion of projects, including but not limited to:  energy  effi-
     7  ciency  and  energy  demand reduction; renewable energy; energy storage;
     8  renewable energy-powered microgrids; energy resiliency; demand response;
     9  and reducing urban heat island effects through various  means,  such  as
    10  through  the  completion  of urban forestry, urban agriculture, or green
    11  infrastructure projects;
    12    (b) the reduction of other regulated air contaminants  in  conjunction
    13  with greenhouse gas emissions reductions; and
    14    (c)  community ownership and governance, including through the funding
    15  of planning, design and construction of community solar installation and
    16  other projects listed under paragraph (a) of this subdivision.
    17    3. Up to twenty-five percent of funds from the community justice tran-
    18  sition fund may be used  for  projects  located  outside  of  designated
    19  disadvantaged  communities, but must provide at least one of the follow-
    20  ing benefits to one or more designated disadvantaged communities:
    21    (a) reducing emissions from stationary sources, including  the  perma-
    22  nent closure of fossil fuel-fired power plants, including peaker-plants,
    23  or  waste-to-energy  plants,  with  priority given to reducing emissions
    24  from sources that emit  pollution  into  the  airshed  of  disadvantaged
    25  communities;
    26    (b) reducing the financial burden of energy expenses for disadvantaged
    27  communities, including the reducing energy costs through the creation of
    28  community-owned solar assets; and
    29    (c) increasing and supporting opportunities for community ownership of
    30  energy  projects  by  residents  of disadvantaged communities, including
    31  ownership of the type of energy projects specified under subdivision two
    32  of this section and by establishing community-owned energy cooperatives.
    33    § 1910. Selection process.  1. The director, in consultation with  the
    34  working  group,  shall  develop criteria and a process for competitively
    35  selecting project proposals under this subtitle, in accordance with this
    36  section and section nineteen hundred nine of this subtitle.
    37    2. The director, in consultation with the working group, shall compet-
    38  itively select project proposals according to the criteria  and  process
    39  established under subdivision three of this section.
    40    3.  In  selecting  projects and distributing funds, the director shall
    41  meet the standards in paragraphs (a), (b), (c), (d), (e) and (f) of this
    42  subdivision.
    43    (a) All projects shall be led by an eligible lead  applicant;  provide
    44  benefits  to  designated  disadvantaged communities; comply with section
    45  nineteen hundred nine of this subtitle; incorporate community  decision-
    46  making,  pursuant  to  section nineteen hundred twelve of this subtitle,
    47  throughout project planning and implementation; and provide a  community
    48  accountability  mechanism, pursuant to section nineteen hundred thirteen
    49  of this subtitle.
    50    (b) Program funds as a whole shall be equitably distributed to members
    51  of disadvantaged communities, with roughly an even distribution of funds
    52  per capita among disadvantaged communities across the state.
    53    (c) Communities shall be targeted in  areas  where  energy  costs  are
    54  particularly high in relation to a measure of median household income as
    55  determined  by  the authority; or which have been designated as a nonat-

        S. 3616                            23
 
     1  tainment area for one or more pollutants pursuant to section 107 of  the
     2  federal Clean Air Act (42 U.S.C. section 7407).
     3    (d)  The  director  shall give preference in awards to applicants that
     4  include significant participation by minority- or  women-owned  business
     5  enterprises.
     6    (e)  The  director  shall give preference in awards to applicants that
     7  implement mechanisms to maximize community ownership,  pursuant  to  the
     8  findings  of the latest report mandated by section nineteen hundred four
     9  of this title.
    10    (f) The director shall give preference  in  awards  to  projects  that
    11  would  not  otherwise  likely  be  completed  without the support of the
    12  program.
    13    4. The director shall encourage eligible lead  applicants  to  propose
    14  projects in collaboration with eligible sub-applicants.
    15    5.  The  director  shall annually issue at least one and not more than
    16  four program opportunity notices or requests for  proposals  to  solicit
    17  applications from eligible lead applicants.
    18    6. The director shall prioritize creating a streamlined and simplified
    19  application  and  disbursement  process  for  eligible  lead applicants,
    20  including but not limited to, quarterly available  grant  opportunities,
    21  at least quarterly information webinars, and providing opportunities for
    22  technical assistance to navigate the application process.
    23    7.  To  the  extent  otherwise  permitted  by  law, the director shall
    24  distribute funds in a manner that provides at least seventy-five percent
    25  of each award up-front, to ensure that  eligible  lead  applicants  with
    26  limited existing budgets are able to implement projects effectively.
    27    8.  The director shall consult with the division of housing and commu-
    28  nity renewal and the working group to develop  strategies  to:  mitigate
    29  any  adverse  economic  impact of the program on tenants and homeowners,
    30  including, but not limited to, residents of  rent-regulated  housing  or
    31  recipients  of  housing  subsidies  and  rent-burdened  households;  and
    32  enhance long-term community cohesion.
    33    § 1911. Identification of disadvantaged community needs. 1. The direc-
    34  tor, in cooperation with the working  group  and  the  commissioners  of
    35  health,  labor  and environmental conservation, shall identify disadvan-
    36  taged community needs for the purposes of implementing this section.
    37    2. Disadvantaged community needs shall be identified, with  the  input
    38  of  experts,  local government representatives, public utility represen-
    39  tatives, and other local stakeholders, for each disadvantaged  community
    40  or set of disadvantaged communities.
    41    3.  Before  finalizing  the list of identified disadvantaged community
    42  needs pursuant to subdivision one of this section,  the  director  shall
    43  ensure  that  there  are meaningful opportunities for public comment for
    44  all persons who will be impacted  by  the  identified  needs,  including
    45  persons living in areas that may be identified as disadvantaged communi-
    46  ties, including by:
    47    (a)  publishing  draft  identified  disadvantaged community needs, and
    48  making such information available on the internet;
    49    (b) holding at least six regional public hearings on the draft identi-
    50  fied disadvantaged community needs, including three meetings in  upstate
    51  regions and three meetings in downstate regions; and
    52    (c)  allowing  at  least one hundred twenty days for the submission of
    53  public comment, following the date of the publication of  draft  identi-
    54  fied disadvantaged community needs described under paragraph (a) of this
    55  subdivision.

        S. 3616                            24
 
     1    4.  The  director,  in  cooperation  with  the  working group, and the
     2  commissioners of health, labor and environmental conservation  or  their
     3  designees,  shall  meet no less than than annually to review the identi-
     4  fied disadvantaged community needs and methods  used  to  identify  such
     5  needs, and may modify such methods to incorporate new data and scientif-
     6  ic  findings,  subject  to  the  same  process requirements listed under
     7  subdivision three of this section.
     8    § 1912. Community decision-making and  accountability  mechanisms.  1.
     9  The  director, in cooperation with the working group and the commission-
    10  ers of health, labor and  environmental  conservation,  shall  establish
    11  criteria  for  appropriate  community  decision-making practices for the
    12  purposes of implementing this section.
    13    2. Community decision-making practices shall be  identified  based  on
    14  consultations  with  constituency-based organizations, members of disad-
    15  vantaged communities, and other stakeholders identified by the director.
    16    3. Before finalizing the criteria for appropriate community  decision-
    17  making practices pursuant to subdivision one of this section, the direc-
    18  tor  shall  ensure  that  there  are meaningful opportunities for public
    19  comment for all persons who will be impacted by the criteria,  including
    20  persons living in areas that may be identified as disadvantaged communi-
    21  ties, including by:
    22    (a)  publishing  draft criteria, and making such information available
    23  on the internet;
    24    (b) holding at least six regional public hearings on the draft  crite-
    25  ria,  including  three meetings in the upstate region and three meetings
    26  in the downstate region; and
    27    (c) allowing at least one hundred twenty days for  the  submission  of
    28  public  comment, following the date of the publication of draft criteria
    29  described under paragraph (a) of this subdivision.
    30    4. The director, in  cooperation  with  the  working  group,  and  the
    31  commissioners  of  health,  labor  and environmental conservation, shall
    32  meet no less than annually to review the criteria and  methods  used  to
    33  identify appropriate community decision-making practices, and may modify
    34  such methods to incorporate new data and scientific findings, subject to
    35  the  same  process  requirements  listed under subdivision three of this
    36  section.
    37    § 1913. Criteria for implementing community accountability mechanisms.
    38  The director, in cooperation with the working group, and the commission-
    39  ers of health, labor and  environmental  conservation,  shall  establish
    40  criteria  for  implementing  community accountability mechanisms for the
    41  purposes of implementing this section.
    42    1. Criteria for implementing community accountability mechanisms shall
    43  be based on input from the working group.
    44    2. Before finalizing the criteria for implementing community  account-
    45  ability  mechanisms  pursuant  to  subdivision  one of this section, the
    46  director shall ensure that there are meaningful opportunities for public
    47  comment for all persons who will be impacted by the criteria,  including
    48  persons living in areas that may be identified as disadvantaged communi-
    49  ties, including by:
    50    (a)  publishing  draft criteria, and making such information available
    51  on the internet;
    52    (b) holding at least six regional public hearings on the draft  crite-
    53  ria,  including  three meetings in the upstate region and three meetings
    54  in the downstate region; and

        S. 3616                            25
 
     1    (c) allowing at least one hundred twenty days for  the  submission  of
     2  public  comment, following the date of the publication of draft criteria
     3  described under paragraph (a) of this subdivision.
     4    3.  The  director,  in  cooperation  with  the  working group, and the
     5  commissioners of health, labor  and  environmental  conservation,  shall
     6  meet  no  less  than annually to review the criteria and methods used to
     7  identify community accountability mechanisms, and may modify such  meth-
     8  ods to incorporate new data and scientific findings, subject to the same
     9  process requirements listed under subdivision two of this section.
    10    §  1914.  Consultation  with the working group. In consulting with the
    11  working group in the course  of  implementing  the  program  established
    12  under  this subtitle, the authority shall adhere to the following proce-
    13  dures:
    14    1. The director shall convene consultation meetings with  the  working
    15  group not less frequently than four times annually;
    16    2. The director shall provide, to all working group members, notice of
    17  working  group  meetings  not less than one month before the date of the
    18  meeting; and
    19    3. The director shall provide, to all working group members, electron-
    20  ic copies or hard copies of any written or other informational materials
    21  to be discussed at a given working group meeting not less than one month
    22  prior to the date of the meeting.
    23    § 1915. Definitions. For the purposes of this subtitle, the  following
    24  terms shall have the following meanings:
    25    1.  "Advisory  council" means the body established under section eigh-
    26  teen hundred ninety-eight of this article.
    27    2.  "Eligible  applicant"  means  a  constituency-based  organization,
    28  tribal  nation,  municipality, transit agency, port authority, metropol-
    29  itan planning organizations, small business,  minority-  or  women-owned
    30  business  enterprise  or  any  other  entity  deemed  appropriate by the
    31  authority.
    32    3. "Fund" means the climate jobs and infrastructure  fund  established
    33  under  subdivision  two  of sections three thousand forty-six of the tax
    34  law.
    35    4. "Minority- or  women-owned  business  enterprise"  means  either  a
    36  "minority-owned  business enterprise" as defined in subdivision seven of
    37  section three hundred ten of the executive law, or a "women-owned  busi-
    38  ness enterprise", as defined in subdivision fifteen of such section.
    39    5.  "Program" means the climate jobs and infrastructure program estab-
    40  lished under this subtitle.
    41    6. "Third-party entities"  means  private  sector  entities,  academic
    42  institutions,  non-profit  organizations and other stakeholders that are
    43  not eligible applicants.
    44    § 1916. Establishment of  climate  jobs  and  infrastructure  program.
    45  There  is  hereby  established  within the authority, a climate jobs and
    46  infrastructure program, which shall disburse funds from the climate jobs
    47  and infrastructure fund pursuant to the goals established under  section
    48  nineteen hundred eighteen of this subtitle.
    49    §  1917.  Administration  by  the  authority. Within six months of the
    50  effective date of this subtitle, the authority is hereby authorized  and
    51  directed to establish and administer the climate jobs and infrastructure
    52  program.  The authority shall implement the program in consultation with
    53  the advisory council, the public service commission, the New York  inde-
    54  pendent system operator, and the departments of transportation, environ-
    55  mental  conservation,  health and labor. The authority is authorized and
    56  directed to take the following steps:

        S. 3616                            26
 
     1    1. using monies made available from the fund to achieve the  goals  of
     2  the program outlined in section nineteen hundred eighteen of this subti-
     3  tle;
     4    2. entering into contracts with eligible applicants and other entities
     5  through the competitive selection process authorized by this subtitle;
     6    3. using from the monies made available for the program, not in excess
     7  of two percent of annual fund proceeds, its own necessary and documented
     8  costs  incurred  in  administering the program, including program evalu-
     9  ation; compensation, at any amount to be determined  by  the  authority,
    10  for  members  of the advisory council; and compensation for at least one
    11  full-time authority staff person dedicated to  supporting  the  advisory
    12  council; and
    13    4. exercising such other powers as are necessary for the proper admin-
    14  istration of the program.
    15    §  1918.  Allocation  of  funds.  1.  Funds  from the climate jobs and
    16  infrastructure fund shall  be  disbursed  under  the  climate  jobs  and
    17  infrastructure  program to achieve quantifiable, verifiable, and signif-
    18  icant reductions in  greenhouse  gas  emissions  and  of  regulated  air
    19  contaminants  while achieving the general goals specified in subdivision
    20  two of this section.
    21    2. In addition to meeting the goals specified in  subdivision  one  of
    22  this section, funds shall be disbursed to meet the following goals:
    23    (a)  job creation, pursuant to the standards established under article
    24  eight-B of the labor law, including opportunities for new entrants  into
    25  the  state's  workforce, and the long-term unemployed or displaced work-
    26  ers, and the development of an in-state manufacturing and  supply  chain
    27  for clean energy technologies;
    28    (b) funding large-scale projects, including those that may span multi-
    29  ple communities or regions;
    30    (c)  reducing  greenhouse  gas  emissions  and  energy  costs  through
    31  improvements in energy efficiency, energy conservation, load  balancing,
    32  energy storage and the installation of clean energy technologies;
    33    (d)  achieving  advancements  in  social  equity,  including promoting
    34  community ownership and governance of energy production, and  supporting
    35  sustainable local economic development;
    36    (e)  electrification  of  equipment  and  appliances  for residential,
    37  commercial and industrial applications;
    38    (f) promoting the participation of private capital, municipal  govern-
    39  ments  and  tribal nations in achieving the goals stated in this section
    40  and the use of innovative financing mechanisms to finance  energy  effi-
    41  ciency improvements through energy cost savings; and
    42    (g)  encouraging  the  development  of programs to support communities
    43  with high cumulative environmental burden, high peak  energy  load,  and
    44  aging housing stock in order to preserve affordable housing.
    45    3.  Every five years, the authority, in consultation with the advisory
    46  council, shall designate priority project types for investments based on
    47  capital  funding  needs,  the  potential  for  greenhouse  gas  emission
    48  reductions,  and  the potential for regional job creation. These priori-
    49  ties shall guide the authority in  soliciting  proposals  and  selecting
    50  projects.  The  first  five years of funding shall prioritize investment
    51  in:
    52    (a) public transit,  with  special  priority  for  intra-city  transit
    53  modes, in upstate regions and in other underserved regions of the state,
    54  including  through:  subsidizing transit rate reductions, the establish-
    55  ment of new transit routes, and improvements in transit service (includ-
    56  ing increased frequency, accessibility and safety), especially to better

        S. 3616                            27
 
     1  serve low- to moderate-income individuals; creating  "journey  to  work"
     2  routes,  dedicated  to  creating  access to major areas of employment in
     3  both urban and non-urban areas, especially routes  connecting  non-urban
     4  areas  without  necessitating a trip through the central city; directing
     5  infrastructure funding, including through various approaches to support-
     6  ing bonding, revolving loan funds and other  financing  mechanisms;  and
     7  subsidizing  electric  and  zero-emissions  vehicles and infrastructure,
     8  including charging infrastructure and energy storage technologies;
     9    (b) energy efficiency and conservation projects, including projects in
    10  public buildings, and incentives for new private buildings that  achieve
    11  high  efficiency or net-zero status and for retrofits of existing build-
    12  ings, providing that landlords who receive retrofit funds  or  financial
    13  assistance of any kind under this program not be allowed to include such
    14  investments  as  major  capital  improvements  or  individual  apartment
    15  assessments in order to raise rents to recoup  costs  in  rent-regulated
    16  housing;
    17    (c)  large  scale renewable energy projects, community-owned renewable
    18  energy projects, such as community solar and  community  wind  projects,
    19  and  publicly-owned  renewable  energy  projects,  including projects on
    20  public buildings and land;
    21    (d) port facility electrification and sustainability measures, includ-
    22  ing at the port of Albany, the port of Buffalo, and the  New  York  city
    23  waterfront including Hunts Point and Sunset Park; and
    24    (e) electric grid upgrades within New York, including the construction
    25  of  electricity  transmission, energy storage and smart grid infrastruc-
    26  ture, and including support for establishing  electric  vehicle  infras-
    27  tructure and systems to optimize distributed energy resources.
    28    4.  In  addition  to allocating funds under the program to achieve the
    29  goals and priorities outlined in this section, the authority shall allo-
    30  cate funds for the purposes of providing technical assistance to  eligi-
    31  ble applicants. Such technical assistance shall include assistance with:
    32  developing project proposals; implementing project proposals; conducting
    33  analysis  and  reporting  on projects implemented under the program; and
    34  other needs identified by the authority.
    35    § 1919. Funding instruments. The authority, in consultation  with  the
    36  advisory council, shall determine the appropriate instrument, or variety
    37  of  instruments,  including  grants,  loan  guarantees, incentives, bond
    38  payments, loan programs, and other mechanisms for  achieving  the  goals
    39  stated in section nineteen hundred eighteen of this subtitle.
    40    §  1920.  Selection process and criteria. The authority is authorized,
    41  within amounts appropriated, to disburse funds from the fund to eligible
    42  applicants on a competitive basis.
    43    1. The authority, in consultation with  the  advisory  council,  shall
    44  develop criteria and a process for selecting project proposals submitted
    45  by eligible applicants under this subtitle.
    46    2.  In  selecting projects and distributing funds, the authority shall
    47  include the following criteria:
    48    (a) the extent to which the project meets each of the goals set  forth
    49  in subdivisions one and two of section nineteen hundred eighteen of this
    50  subtitle;
    51    (b) whether the project falls under a priority area for investment for
    52  the five-year period;
    53    (c)  whether  the  project  will benefit geographic areas where energy
    54  costs are particularly high in relation to a measure of median household
    55  income as determined by the authority; or which have been designated  as

        S. 3616                            28

     1  a  nonattainment area for one or more pollutants pursuant to section 107
     2  of the federal Clean Air Act (42 U.S.C. section 7407);
     3    (d) whether the applicants include significant participation by minor-
     4  ity- and women-owned business enterprises; and
     5    (e)  the  extent  to  which  projects would not otherwise be completed
     6  without the support of the program.
     7    3. In allocating funds, the authority shall also, where possible,  aim
     8  to  geographically  distribute  funds  in an equitable manner across the
     9  state, taking into account population density.
    10    4. The  authority  shall  encourage  eligible  applicants  to  propose
    11  projects  in partnership with other eligible applicants, and with third-
    12  party entities.
    13    § 1921. Consultation with the advisory council. In consulting with the
    14  advisory council in the course of implementing the  program  established
    15  under this subtitle, the authority shall:
    16    1.  convene  consultation  meetings with the advisory council not less
    17  frequently than four times annually;
    18    2. provide notice of advisory council meetings to all advisory council
    19  members not less than thirty days before the date of the meeting; and
    20    3. provide electronic copies or hard copies of any  written  or  other
    21  informational  materials  to  be  discussed  at a given advisory council
    22  meeting to all advisory council members not less than thirty days  prior
    23  to the date of the meeting.
    24    § 1922. Comprehensive approach to existing structures. In consultation
    25  with  the advisory council, the department of state, department of homes
    26  and community renewal, the department of environmental conservation, and
    27  other relevant stakeholders, the authority shall:
    28    1. develop a master plan to:
    29    (a) ensure a comprehensive approach exists to improve building  energy
    30  efficiency that includes all of the state's existing buildings;
    31    (b) ensure that the state meets its energy efficiency goals;
    32    (c) reduces energy use in all existing structures and new buildings;
    33    (d) improves and protects housing affordability; and
    34    (e) incorporates health and safety assessments and improvements.
    35    2. The master plan will specifically include recommendations for coor-
    36  dinated  changes  to  the  building  and energy codes, energy efficiency
    37  programs administered by the state and others, and spending pursuant  to
    38  the  climate  and community investment act, in order to ensure that most
    39  buildings receive deep energy efficiency retrofits that include  assess-
    40  ment and improvements to health and safety.
    41    3.  To  prepare  the master plan, the authority shall convene relevant
    42  stakeholders in each region of the state at least once giving  at  least
    43  ninety  days'  notice of the proposed meeting in order for the public to
    44  attend.
    45    § 8. The tax law is amended by adding two new articles 42  and  43  to
    46  read as follows:
    47                                  ARTICLE 42
    48                            CLIMATE POLLUTION FEE
    49  Section 3039. Definitions.
    50          3040. Imposition of carbon pollution fee.
    51          3041. Amount of fee.
    52          3042. Applicable entities.
    53          3043. Calculation of emissions factors.
    54          3044. Exemptions and deductions.
    55          3045. Emissions leakage mitigation policy.
    56          3046. Creation of trust funds.

        S. 3616                            29
 
     1          3047. Reporting.
     2    §  3039.  Definitions. For the purposes of this article, the following
     3  terms shall have the following meanings:
     4    1. "Authority" shall have the same meaning as in  subdivision  two  of
     5  section eighteen hundred fifty-one of the public authorities law.
     6    2.  "Border carbon adjustment" means a policy measure to address emis-
     7  sions leakage that adjusts the price of a good,  at  the  point  of  the
     8  importation into the state of goods that require emissions of greenhouse
     9  gases  for  their  production or operation, or export from the state, to
    10  reflect the known or estimated greenhouse gas emissions quantities asso-
    11  ciated with the production of such good.
    12    3. "Carbon-based fuel" means coal, a petroleum product,  natural  gas,
    13  methane,  municipal solid waste (or any other feedstocks used for waste-
    14  to-energy conversions), or biomass that may be a  source  of  greenhouse
    15  gas emissions through combustion and fugitive emissions.
    16    4.  "Carbon  dioxide  equivalent" and "CO2e" mean the amount of carbon
    17  dioxide by mass that would produce the same global warming impact  as  a
    18  given  mass  of  another  greenhouse  gas over an integrated twenty-year
    19  timeframe after emission, based on the best available science.
    20    5. "Regulated air contaminant" shall  have  the  same  meaning  as  in
    21  subdivision twenty-two of section 19-0107 of the environmental conserva-
    22  tion law.
    23    6. "Commissioner" means the commissioner of taxation and finance.
    24    7.  "Disadvantaged communities" means communities that bear burdens of
    25  negative public health  effects,  environmental  pollution,  impacts  of
    26  climate  change,  and possess certain socioeconomic criteria, as identi-
    27  fied pursuant to section 74-0103 of the environmental conservation law.
    28    8. "Downstate region" means the counties of Richmond,  Kings,  Queens,
    29  New York, Bronx, Westchester, Nassau and Suffolk.
    30    9.  "Emissions  leakage" means an increase in emissions outside of the
    31  state, as a result of, or in correlation  with,  the  implementation  of
    32  measures within the state to limit such emissions.
    33    10.  "Fugitive  emissions"  means  those emissions of a greenhouse gas
    34  that are released during  extraction,  transportation  of  fuel,  during
    35  processing,  and  due  to  leaks during industrial processes or at solid
    36  waste and wastewater management sites.
    37    11. "Greenhouse gas" shall have the same  meaning  as  in  subdivision
    38  eight of section 19-1301 of the environmental conservation law.
    39    12.  "Greenhouse  gas emission source" or "source" means any anthropo-
    40  genic source or category of  anthropogenic  sources  of  greenhouse  gas
    41  emissions.
    42    13.  "Industrial  processes" means those processes that include fossil
    43  fuel extraction, the operation of fuel processing plants, pipeline oper-
    44  ations and other fuel transport, the operation of fuel  refineries,  and
    45  other  processes  involved in the extraction, refinement or transport of
    46  carbon-based fuels.
    47    14. "Life cycle analysis" means a method  for  calculating  greenhouse
    48  gas  emissions  that  encompasses emissions that are released or seques-
    49  tered during all phases of a fuel or  other  product's  life,  including
    50  those  emissions  released  during  extraction,  processing,  transport,
    51  distribution, combustion  (or  some  other  form  of  consumption),  and
    52  disposal.  Such  term  shall  include  CO2e  that  is sequestered during
    53  biological processes, pertaining to biomass fuel.
    54    15. "Petroleum product" means all petroleum  derivatives,  whether  in
    55  bond  or not, which are commonly burned to produce heat, electricity, or
    56  motion, or which are commonly processed to  produce  synthetic  gas  for

        S. 3616                            30

     1  burning, including without limitation, propane, gasoline, unleaded gaso-
     2  line,  kerosene,  heating oil, diesel fuel, kerosene based jet fuel, and
     3  number 4, number 5 and residual oil for utility  and  non-utility  uses,
     4  but  not including, petroleum feedstocks to plastics production or other
     5  manufacturing.
     6    16. "Upstate region" means all New York counties  other  than  Nassau,
     7  Suffolk, Richmond, Kings, Queens, New York, Bronx and Westchester.
     8    17.  "Working  group"  means the climate justice working group created
     9  pursuant to section 74-0103 of the environmental conservation law.
    10    § 3040. Imposition of carbon pollution fee.  There is  hereby  imposed
    11  upon  any  applicable  entity, as specified under section three thousand
    12  forty-two of this article, a fee, in an amount determined under  section
    13  three thousand forty-one of this article, on:
    14    1.  any  carbon-based fuel sold, used, or brought into the state by an
    15  applicable entity as defined in section three thousand forty-two of this
    16  article; and
    17    2. any fugitive emissions of methane emitted in the state by an appli-
    18  cable entity.
    19    § 3041. Amount of fee.  1. The amount of the fee  imposed  by  section
    20  three  thousand  forty  of this article, per short ton of carbon dioxide
    21  equivalent content that would be emitted through the combustion of  such
    22  product,  as  determined  by  the  commissioner in consultation with the
    23  commissioner of environmental conservation, pursuant  to  this  article,
    24  shall be equal to:
    25    (a)  for  any  carbon-based fuel sold, used, or entered into the state
    26  during calendar year two thousand nineteen, thirty-five dollars;
    27    (b) for any carbon-based fuel sold, used, or entered  into  the  state
    28  during  any  calendar  year  after  two thousand nineteen and before two
    29  thousand twenty-three, an amount equal to the sum of:
    30    (i) the product of the amount in effect under this subdivision for the
    31  preceding calendar year and one hundred five percent, and
    32    (ii) the product of the amount determined under  subparagraph  (i)  of
    33  this paragraph for such year and a cost-of-living, or inflation, adjust-
    34  ment  using  the United States Bureau of Labor Statistics Consumer Price
    35  Index or, if that index is not available, another index adopted  by  the
    36  commissioner;
    37    (c)  for  any  carbon-based fuel sold, used, or entered into the state
    38  during any calendar year after two thousand twenty-two  and  before  two
    39  thousand thirty-three, an amount equal to the sum of:
    40    (i) the product of the amount in effect under this subdivision for the
    41  preceding calendar year, and:
    42    (A) one hundred two percent if the most recent five-year environmental
    43  integrity  metric,  described  under paragraph (a) of subdivision two of
    44  this section, is less than minus five percent;
    45    (B) one hundred five percent if the  most  recent  five-year  environ-
    46  mental  integrity  metric,  described under paragraph (a) of subdivision
    47  two of this section, is greater than or equal to minus five percent  and
    48  less than five percent;
    49    (C)  one  hundred  seven percent if the most recent five-year environ-
    50  mental integrity metric, described under paragraph  (a)  of  subdivision
    51  two  of  this section, is greater than or equal to five percent and less
    52  than ten percent;
    53    (D) one hundred ten percent if the most recent five-year environmental
    54  integrity metric, described under paragraph (a) of  subdivision  two  of
    55  this section, is greater than or equal to ten percent; and

        S. 3616                            31
 
     1    (ii)  the  product  of the amount determined under subparagraph (i) of
     2  this paragraph for such year and a cost-of-living, or inflation, adjust-
     3  ment using the United States Bureau of Labor Statistics  Consumer  Price
     4  Index  or,  if that index is not available, another index adopted by the
     5  commissioner;
     6    (d)  for  any  carbon-based fuel sold, used, or entered into the state
     7  during any calendar year after two thousand thirty-two  and  before  two
     8  thousand fifty-two, an amount equal to the sum of:
     9    (i) the product of the amount in effect under this subdivision for the
    10  preceding calendar year, and:
    11    (A) one hundred two percent if the most recent five-year environmental
    12  integrity  metric,  described  under paragraph (a) of subdivision two of
    13  this section, is less than minus five percent, and the most recent cumu-
    14  lative environmental integrity metric, described under paragraph (b)  of
    15  subdivision two of this section, is less than minus one percent;
    16    (B) one hundred five percent if:
    17    I. the most recent five-year environmental integrity metric, described
    18  under  paragraph (a) of subdivision two of this section, is greater than
    19  or equal to minus five percent and less than five percent, and the  most
    20  recent  cumulative environmental integrity metric, described under para-
    21  graph (b) of subdivision two of this section, is less than two  percent;
    22  or
    23    II.   the  most  recent  cumulative  environmental  integrity  metric,
    24  described under paragraph (b) of subdivision two  of  this  section,  is
    25  greater  than  or  equal to minus one percent and less than two percent,
    26  and the most recent five-year environmental integrity metric,  described
    27  under  paragraph  (a)  of  subdivision two of this section, is less than
    28  five percent; and
    29    (C) one hundred seven percent if:
    30    I. the most recent five-year environmental integrity metric, described
    31  under paragraph (a) of subdivision two of this section, is greater  than
    32  or  equal  to  five  percent  and less than ten percent, and if the most
    33  recent cumulative environmental integrity metric, described under  para-
    34  graph  (b)  of  subdivision  two  of  this  section,  is less than three
    35  percent; or
    36    II.  the  most  recent  cumulative  environmental  integrity   metric,
    37  described  under  paragraph  (b)  of subdivision two of this section, is
    38  greater than or equal to two percent and less than  three  percent,  and
    39  the  most  recent  five-year  environmental  integrity metric, described
    40  under paragraph (a) of subdivision two of this section, is less than ten
    41  percent; and
    42    (D) one hundred ten percent if:
    43    I. the most recent five-year environmental integrity metric, described
    44  under paragraph (a) of subdivision two of this section, is greater  than
    45  or equal to ten percent; or
    46    II.   the  most  recent  cumulative  environmental  integrity  metric,
    47  described under paragraph (b) of subdivision two  of  this  section,  is
    48  greater than or equal to three percent; and
    49    (ii)  the  product  of the amount determined under subparagraph (i) of
    50  this paragraph for such year and a cost-of-living, or inflation, adjust-
    51  ment using the United States Bureau of Labor Statistics  Consumer  Price
    52  Index  or,  if that index is not available, another index adopted by the
    53  commissioner;
    54    (e) for any carbon-based fuel sold, used, or entered  into  the  state
    55  during  any  calendar year after two thousand fifty-one, an amount equal
    56  to the sum of:

        S. 3616                            32
 
     1    (i) the amount in effect under  this  subdivision  for  the  preceding
     2  calendar year; and
     3    (ii)  the  product  of the amount determined under subparagraph (i) of
     4  this paragraph for such year and a cost-of-living, or inflation, adjust-
     5  ment using the United States Bureau of Labor Statistics  Consumer  Price
     6  Index  or,  if that index is not available, another index adopted by the
     7  commissioner.
     8    2. In two thousand twenty-two, and every five  years  thereafter,  the
     9  commissioner shall, in consultation with the department of environmental
    10  conservation:
    11    (a)  calculate  the  five-year  environmental  integrity metric, which
    12  shall equal a fraction, expressed as a percentage:
    13    (i) the numerator of which is:
    14    (A) the sum of the quantity of actual statewide greenhouse  gas  emis-
    15  sions, measured in short tons CO2e, in each of the preceding five years,
    16  minus
    17    (B)  the  sum of the quantity of target statewide greenhouse gas emis-
    18  sions, measured in short tons CO2e, in each of the preceding five years,
    19  pursuant to subdivision four of this section; and
    20    (ii) the denominator of which is the sum of  the  quantity  of  target
    21  statewide greenhouse gas emissions, measured in short tons CO2e, in each
    22  of  the  preceding  five  years,  pursuant  to  subdivision four of this
    23  section; and
    24    (b) calculate the cumulative  environmental  integrity  metric,  which
    25  shall equal a fraction, expressed as a percentage:
    26    (i) the numerator of which is:
    27    (A)  the  sum of the quantity of actual statewide greenhouse gas emis-
    28  sions, measured in short tons CO2e, in each of the preceding years  that
    29  are after two thousand eighteen, minus
    30    (B)  the  sum of the quantity of target statewide greenhouse gas emis-
    31  sions, measured in short tons CO2e, in each of the preceding years  that
    32  are  after  two  thousand eighteen, pursuant to subdivision four of this
    33  section; and
    34    (ii) the denominator of which is the sum of  the  quantity  of  target
    35  statewide greenhouse gas emissions, measured in short tons CO2e, in each
    36  of the preceding years that are after two thousand eighteen, pursuant to
    37  subdivision four of this section; and
    38    (c)  publish  the amounts calculated in paragraphs (a) and (b) of this
    39  subdivision not later than July first in that year.
    40    3. The commissioner shall calculate and publish the amount of the  fee
    41  in current dollars for each year, no later than July first in that year.
    42    4.  For the purposes of calculating the five-year environmental integ-
    43  rity metric and the  cumulative  environmental  integrity  metric  under
    44  subdivision  two  of  this  section, the commissioner shall refer to the
    45  following statewide greenhouse gas emissions targets:
    46    (a) for the year two thousand twenty-one, eighty-five percent of emis-
    47  sions;
    48    (b) for each year after two thousand twenty-one and before  two  thou-
    49  sand twenty-seven, four percent less than the previous year; and
    50    (c)  for  each year after two thousand twenty-six and before two thou-
    51  sand forty-two, three percent less than the previous year; and
    52    (d) for each year after two thousand forty-one, two percent less  than
    53  the previous year.
    54    §  3042.  Applicable  entities.  For the purposes of this article, the
    55  term "applicable entity" means:
    56    1. for the purposes of any coal sold, used, or entered into the state:

        S. 3616                            33
 
     1    (a) the vendor of such coal at the first point of sale, in cases where
     2  the sale of coal occurs in the state; and
     3    (b) the purchaser of such coal, in cases where the sale of coal occurs
     4  outside of the state;
     5    2.  for  the  purposes of any petroleum product sold, used, or entered
     6  into the state:
     7    (a) the vendor, including a petroleum business as defined  by  section
     8  three  hundred  of  this chapter, of such petroleum product at the first
     9  point of sale, in cases where the sale of the petroleum  product  occurs
    10  in the state; and
    11    (b)  the  purchaser of such petroleum product, in cases where the sale
    12  of the petroleum product occurs outside of the state;
    13    3. for the purposes of any natural gas sold, used, or entered into the
    14  state:
    15    (a) the vendor (including a natural gas distribution company or whole-
    16  sale natural gas vendors) of such natural gas  at  the  first  point  of
    17  sale, in cases where the sale of natural gas occurs in the state; and
    18    (b)  the purchaser of such natural gas, in cases where the sale of the
    19  natural gas occurs outside of the state;
    20    4. for the purposes of any electricity sold, used, or entered into the
    21  state:
    22    (a) the vendor (including a local electricity distribution company,  a
    23  wholesale  electricity vendor and all competitive suppliers of electric-
    24  ity to end users) of such electricity at the first  point  of  sale,  in
    25  cases where the sale of electricity occurs in the state; and
    26    (b)  the purchaser of such electricity, in cases where the sale of the
    27  electricity occurs outside of the state;
    28    5. for the purposes of any municipal solid waste (or any other  feeds-
    29  tocks  used for waste-to-energy conversions) sold, used, or entered into
    30  the state:
    31    (a) the vendor of such municipal solid waste (or any other  feedstocks
    32  used  for  waste-to-energy  conversions)  at the first point of sale, in
    33  cases where the sale of municipal solid waste (or any  other  feedstocks
    34  used for waste-to-energy conversions) occurs in the state; and
    35    (b)  the  purchaser of such municipal solid waste (or any other feeds-
    36  tocks used for waste-to-energy conversions), in cases where the sale  of
    37  the municipal solid waste (or any other feedstocks used for waste-to-en-
    38  ergy conversions) occurs outside of the state;
    39    6.  for  the  purposes  of any biomass sold, used, or entered into the
    40  state,
    41    (a) the vendor of such biomass at the first point of  sale,  in  cases
    42  where the sale of biomass occurs in the state; and
    43    (b)  the  purchaser  of  such  biomass, in cases where the sale of the
    44  biomass occurs outside of the state; and
    45    7. for the purposes of any fugitive emissions of methane  released  in
    46  the state, the owner of the property that is the source of such fugitive
    47  emissions,  including stationary sources and mobile sources, and includ-
    48  ing pipeline operators, fuel distributors, transportation companies  and
    49  other entities.
    50    §  3043.  Calculation of emissions factors. 1. Not later than one year
    51  after the effective date of this article, the commissioner  of  environ-
    52  mental  conservation, in collaboration with the commissioner, shall, for
    53  each carbon-based fuel identified in this article and for various sourc-
    54  es of electricity consumed in the state, calculate greenhouse gas  emis-
    55  sions factors, in carbon dioxide equivalent.

        S. 3616                            34
 
     1    2.  Emissions  factors associated with combustion or other consumption
     2  of the carbon-based fuels identified in this article shall be calculated
     3  according to life-cycle analysis  methods,  which  at  a  minimum  shall
     4  incorporate:
     5    (a)  any greenhouse gases released at the point of combustion or other
     6  consumption; and
     7    (b)  up-steam  fugitive  emissions  of  methane  released  during  the
     8  extraction,  processing, refining, transport, or distribution of natural
     9  gas products and petroleum products before the point of  consumption  in
    10  New York.
    11    3.  The  commissioner  of environmental conservation, in collaboration
    12  with the commissioner, shall calculate, for various sources of electric-
    13  ity consumed in the state, greenhouse gas emissions factors,  in  carbon
    14  dioxide  equivalent per kilowatt-hour, associated with the combustion of
    15  each carbon-based fuel identified in this article for  the  purposes  of
    16  generating  electricity.  This  calculation should take into account the
    17  best available information and science regarding power plant heat  rates
    18  and  other  operational  parameters that may determine efficiency in the
    19  conversion of thermal energy to electrical  energy.  The  C02e  of  each
    20  kilowatt-hour  of electricity delivered in the state shall be determined
    21  by taking the weighted average of the coal, petroleum  product,  natural
    22  gas,  municipal  solid waste (or any other feedstocks used for waste-to-
    23  energy conservations), or biomass portions of the fuel mix and multiply-
    24  ing each of those portions separately by the amount  of  carbon  dioxide
    25  equivalent  emissions  created per kilowatt-hour of electricity produced
    26  by each such fuel. The  calculation  of  emissions  factors  under  this
    27  subdivision  shall  take  into  account  all electricity consumed in the
    28  state, which shall include any electricity produced within the state and
    29  outside of the state.
    30    § 3044. Exemptions and deductions.  1. Any applicable  entity  covered
    31  by  the  regional  greenhouse gas initiative shall be entitled to deduct
    32  from the fee imposed by this article an amount equal to  the  amount  it
    33  paid  for the same year on account of the regional greenhouse gas initi-
    34  ative; provided, however, that the amount so deducted may be no  greater
    35  than the total amount of the fee as calculated in this article.
    36    2. Any applicable entity subject to a fee under this article, shall be
    37  entitled  to deduct from the fee imposed by this article an amount equal
    38  to the amount it paid for the same year on account of a federal  law  or
    39  regulation that imposes a direct price (including through cap-and-trade,
    40  or  a  carbon  tax  or carbon fee mechanisms) on the same greenhouse gas
    41  emissions from carbon-based fuels; provided, however, that the amount so
    42  deducted may be no greater than the total amount of the  fee  as  calcu-
    43  lated in this article.
    44    3.  The commissioner, in partnership with the commissioner of environ-
    45  mental conservation, may exempt certain sources of greenhouse gas  emis-
    46  sions found to produce de minimis quantities of such emissions. In order
    47  to  exempt  sources  of greenhouse gas emissions under this subdivision,
    48  the commissioner, in partnership with the commissioner of  environmental
    49  conservation,  shall  first  promulgate  a rule, or rules, outlining the
    50  specific requirements for being  classified  as  a  de  minimis  source,
    51  including,  at a minimum, identifying the quantities of greenhouse gases
    52  that would make a source a de minimis source. In promulgating such rule,
    53  or rules, the commissioner shall provide  meaningful  opportunities  for
    54  public  comment, including from persons living in disadvantaged communi-
    55  ties.

        S. 3616                            35
 
     1    § 3045. Emissions leakage mitigation policy.   1. Not later  than  one
     2  year  after  the  effective  date  of this article, the commissioner, in
     3  partnership with the commissioners  of  environmental  conservation  and
     4  labor  and  the  president of the authority, shall prepare and approve a
     5  scoping  plan  outlining  recommendations  for policy measures to reduce
     6  emissions leakage associated with the implementation of this article.
     7    (a) The draft scoping plan shall be developed in consultation with the
     8  working group and other stakeholders.
     9    (b) The department shall provide meaningful opportunities  for  public
    10  comment  from  all  persons  who will be impacted by the plan, including
    11  persons working in energy intensive and  trade  exposed  industries  and
    12  persons living in disadvantaged communities.
    13    (c)  The measures and actions considered in such scoping plan shall at
    14  a minimum include:
    15    (i) the implementation of a border carbon  adjustment  for  vulnerable
    16  industries and companies;
    17    (ii) the implementation of an output-based carbon pollution fee rebate
    18  program for vulnerable industries and companies;
    19    (iii)  quantitative  methods  for designating vulnerable industries or
    20  companies, such as energy intensive and trade exposed industries; and
    21    (iv) policies for mitigating any  impacts  to  consumers  and  workers
    22  caused  by  the implementation of policies under this section, including
    23  through the use of revenues from a possible border carbon adjustment for
    24  reducing such impacts.
    25    (d) Not later than one year after the effective date of this  article,
    26  the  department shall submit the final scoping plan to the governor, the
    27  speaker of the assembly and the temporary president of  the  senate  and
    28  post such plan on its website.
    29    2.  Not later than two years after the effective date of this article,
    30  the department, after public workshops and consultation with the working
    31  group, representatives of regulated entities,  and  other  stakeholders,
    32  shall,  after  no  less  than  two public hearings, promulgate rules and
    33  regulations to implement a policy to reduce emissions leakage associated
    34  with the implementation of this article.
    35    (a) The regulations promulgated may include:
    36    (i) a border carbon adjustment for vulnerable  industries  and  compa-
    37  nies;
    38    (ii)  an  output-based carbon pollution fee rebate program for vulner-
    39  able industries and companies;
    40    (iii) quantitative methods for designating  vulnerable  industries  or
    41  companies, such as energy intensive and trade exposed industries; and
    42    (iv)  policies  for  mitigating  any  impacts to consumers and workers
    43  caused by the implementation of policies under this  section,  including
    44  through the use of revenues from a possible border carbon adjustment for
    45  reducing such impacts.
    46    (b) In promulgating these regulations, the department shall:
    47    (i)  design and implement all regulations in a manner that seeks to be
    48  equitable, to minimize costs and to maximize the total benefits  to  New
    49  York state;
    50    (ii)  ensure that activities undertaken to comply with the regulations
    51  do not disproportionately burden disadvantaged communities; and
    52    (iii) minimize emissions leakage.
    53    § 3046. Creation of trust funds.  1. The commissioner shall  establish
    54  a  trust  fund  to  be  known  as  the "community just transition fund",
    55  consisting of such amounts as may be appropriated or  credited  to  such
    56  fund.

        S. 3616                            36
 
     1    (a) There is hereby appropriated to the community just transition fund
     2  for each fiscal year following the effective date of this article, thir-
     3  ty-three percent of the total amount of fees received under:
     4    (i) section three thousand forty of this article during such year, and
     5    (ii)  section  three  thousand  forty-five of this article during such
     6  year, to the extent that  the  policies  promulgated  pursuant  to  such
     7  section generate revenue during such year.
     8    (b)  The  community  just transition fund shall be administered by the
     9  director of the office of climate and community  investment  within  the
    10  authority.
    11    2.  The  commissioner  shall establish a trust fund to be known as the
    12  "climate jobs and infrastructure fund", consisting of  such  amounts  as
    13  may be appropriated or credited to such fund.
    14    (a)  There  is hereby appropriated to the climate jobs and infrastruc-
    15  ture fund for each fiscal year following  the  effective  date  of  this
    16  article, thirty percent of the total amount of fees received under:
    17    (i) section three thousand forty of this article during such year, and
    18    (ii)  section  three  thousand  forty-five of this article during such
    19  year, to the extent that  the  policies  promulgated  pursuant  to  such
    20  section generate revenue during such year.
    21    (b)  The climate jobs and infrastructure fund shall be administered by
    22  the director of the office of climate and  community  investment  within
    23  the authority.
    24    3.  The  commissioner  shall establish a trust fund to be known as the
    25  "low-income and small business energy rebate fund", consisting  of  such
    26  amounts as may be appropriated or credited to such fund.
    27    (a)  There is hereby appropriated to the low-income and small business
    28  energy rebate fund for each fiscal year following the effective date  of
    29  this article, thirty percent of the total amount of fees received under:
    30    (i) section three thousand forty of this article during such year, and
    31    (ii)  section  three  thousand  forty-five of this article during such
    32  year, to the extent  that  the  polices  promulgated  pursuant  to  such
    33  section generate revenue during such year.
    34    (b)  The  low-income  and  small  business energy rebate fund shall be
    35  administrated by the director of the office  of  climate  and  community
    36  investment within the authority.
    37    4.  The  commissioner  shall establish a trust fund to be known as the
    38  "worker and community assurance trust", consisting of  such  amounts  as
    39  may be appropriated or credited to such trust.
    40    (a)  In the first fiscal year in which any fees under this article are
    41  collected, no less than five hundred million  dollars  shall  be  trans-
    42  ferred to the worker and community assurance trust.
    43    (b) There is hereby appropriated to the worker and community assurance
    44  trust for each fiscal year following the effective date of this article,
    45  seven percent of the total amount of fees received under:
    46    (i) section three thousand forty during such year; and
    47    (ii) section three thousand forty-five during such year, to the extent
    48  that  the policies promulgated pursuant to such section generate revenue
    49  during such year.
    50    (c) The worker and community assurance trust shall be administered  by
    51  the board of the worker and community assurance trust.
    52    5.  No  proceeds received through the implementation of the fee estab-
    53  lished under this article shall fund government operations of the state,
    54  other than to pay for reasonable administrative  costs  associated  with
    55  implementing the climate and community investment act.

        S. 3616                            37
 
     1    §  3047. Reporting.  1. No later than three years following the effec-
     2  tive date of this article, and every two years thereafter,  the  commis-
     3  sioner,  in partnership with the commissioner of environmental conserva-
     4  tion, shall produce a report on the implementation of this article. Such
     5  report shall include but not be limited to:
     6    (a)  the  total  annual revenues associated with the implementation of
     7  this article;
     8    (b) the effectiveness of the fee established under section three thou-
     9  sand forty of this article to reduce greenhouse gas emissions statewide,
    10  including an analysis of reductions by geographic  subdivisions  of  the
    11  state;
    12    (c) the amount of estimated emissions leakage that may be occurring in
    13  correlation with the implementation of the fee established under section
    14  three  thousand forty of this article, the effectiveness of any policies
    15  that have been implemented to address emissions leakage, and recommenda-
    16  tions for improving policies to mitigate emissions leakage;
    17    (d) an overview of social benefits from the fees  and  other  policies
    18  established pursuant to this article, including benefits to the economy,
    19  environment, and public health, including women's health;
    20    (e) an overview of the distribution of costs and benefits of the poli-
    21  cies  promulgated  under  this article, across different communities and
    22  sectors of the state economy;
    23    (f) an overview of compliance costs for regulated entities;
    24    (g) an overview of administrative costs for the department  and  other
    25  state agencies; and
    26    (h)  recommendations  for future regulatory and policy action, and, in
    27  general, pertaining to measures for reducing greenhouse emissions in the
    28  state.
    29    2. Before finalizing the report described in subdivision one  of  this
    30  section,  the commissioner shall ensure that there are meaningful oppor-
    31  tunities for public participation, including by:
    32    (a) allowing at least one hundred twenty days for  the  submission  of
    33  public comment, following the date of the publication of a draft report;
    34  and
    35    (b)  holding  at  least  four  regional public hearings, including two
    36  meetings in the upstate region and two meetings in the downstate region,
    37  with emphasis on maximizing participation and accessibility for  members
    38  of disadvantaged communities.
    39    3.  The final report shall be submitted to the governor, the temporary
    40  president of the senate, the speaker of the assembly, the minority lead-
    41  er of the senate and the minority leader of the assembly, and  shall  be
    42  posted on the website of the department.
    43                                 ARTICLE 43
    44                 LOW-INCOME AND SMALL BUSINESS ENERGY REBATE
    45  Section 3050. Definitions.
    46          3051. Establishment  of the low-income and small business energy
    47                  rebate program.
    48          3052. Administration by the department.
    49          3053. Allocation of funds.
    50          3054. Qualifying households.
    51          3055. Rebate amount and report.
    52          3056. Delivery of funds.
    53          3057. Reassessment of allocations.
    54          3058. Small business tax credit.
    55    § 3050. Definitions. For the purposes of this article,  the  following
    56  terms shall have the following meanings:

        S. 3616                            38
 
     1    1.  "Authority"  shall  have the same meaning as in subdivision two of
     2  section eighteen hundred fifty-one of the public authorities law.
     3    2. "Commissioner" means the commissioner of taxation and finance.
     4    3. "Department" means the department of taxation and finance.
     5    4.  "Eligible  low-income  household"  means,  with respect to a given
     6  calendar year, any household whose gross  income  does  not  exceed  one
     7  hundred fifty percent of the poverty line.
     8    5. "Eligible moderate-income household" means, with respect to a given
     9  calendar  year,  any  household  whose  gross income exceeds one hundred
    10  fifty percent of the poverty line, but does not exceed the median house-
    11  hold income for the county in which they reside.
    12    6. "Eligible small business" means a business,  cooperative,  or  not-
    13  for-profit  corporation  which  is  resident  in this state, and employs
    14  fifty or less  persons  (including  a  solo  proprietorship),  and  with
    15  respect to businesses, is independently owned and operated and not domi-
    16  nant in its field.
    17    7.  "Fund"  or  "rebate  fund" means the low-income and small business
    18  energy rebate fund established under subdivision three of section  three
    19  thousand forty-six of this chapter.
    20    8.  "Poverty line" shall have the same meaning as in section 673(2) of
    21  the federal community services block grant act (46 USC section 9902).
    22    9. "Program" means the low-income and  small  business  energy  rebate
    23  program established under this article.
    24    10.  "Working  group"  means the climate justice working group created
    25  pursuant to section 74-0103 of the environmental conservation law.
    26    § 3051. Establishment of the  low-income  and  small  business  energy
    27  rebate  program.  There is hereby established within the department, the
    28  "low-income and small business energy rebate program". The  purposes  of
    29  the program include:
    30    1. disbursement of funds from the "low-income and small business ener-
    31  gy  rebate  fund; for the benefit of the most vulnerable populations, to
    32  offset the increased cost of living associated with  the  implementation
    33  of  the  fee  and  other  regulatory measures established as part of the
    34  state's climate mitigation efforts; and
    35    2. reducing the already severe energy burden on low- and  moderate-in-
    36  come families.
    37    §  3052.  Administration  by  the department. Within six months of the
    38  effective date of this article, the department is hereby authorized  and
    39  directed  to  establish  and operate the program. The commissioner shall
    40  implement the program in consultation with the authority, the office  of
    41  temporary  and  disability assistance, and the departments of health and
    42  labor. The commissioner shall be authorized and directed to: use  monies
    43  made  available  for  the  program pursuant to article forty-two of this
    44  chapter to achieve the purposes of the program; and exercise such  other
    45  powers  as  are necessary for the proper administration of such program,
    46  including issuing rules and regulations consistent with this article.
    47    § 3053. Allocation of funds. Funds from the low-income and small busi-
    48  ness energy rebate fund shall be disbursed under the program to eligible
    49  households and small businesses. The department shall collect  and  then
    50  distribute  directly  to  eligible households the entire amount of funds
    51  dedicated to the rebate fund. Eligible households shall be notified that
    52  they are automatically being enrolled based on their tax filing  status.
    53  The department will make determinations as to which households and small
    54  businesses  are eligible for the rebate and establish an appeals process
    55  within the department as to such determinations.  The  department  shall
    56  also  establish an opportunity for individual residents of the state who

        S. 3616                            39
 
     1  are not required to file income taxes to apply for  rebates  under  this
     2  article.
     3    §  3054. Qualifying households. A rebate will be available to eligible
     4  low-income households, moderate income households, and additional house-
     5  holds, provided that rebates shall only be provided to  such  additional
     6  households  upon  a  determination  by  the  commissioner that there are
     7  adequate funds. Notwithstanding the preceding sentence, the rebate shall
     8  be available to a maximum of sixty percent of the households in New York
     9  state. The department will cooperate with the office  of  temporary  and
    10  disability  assistance  to  identify  households  and  place them in the
    11  following four household categories:
    12    1. eligible moderate-income households containing New York city  resi-
    13  dents;
    14    2.  eligible  low-income households containing New York city residents
    15  in which the household income is below one hundred fifty percent of  the
    16  poverty line or who are receiving any means-tested government assistance
    17  aimed at low-income individuals or households;
    18    3. eligible moderate-income households containing residents outside of
    19  New York city; and
    20    4.  eligible low-income households containing residents outside of New
    21  York city with a household income below one hundred fifty percent of the
    22  poverty  line  or  receiving  any  means-tested  government   assistance
    23  programs aimed at low-income individuals or households.
    24    §  3055.  Rebate amount and report. 1. The department, in consultation
    25  with the working group, shall determine the appropriate  amount  of  the
    26  rebate,  consistent  with the standards set forth in this section.  Each
    27  eligible household will receive a share of the  total  allocated  rebate
    28  funds so that:
    29    (a)  all  eligible  households in New York city shall receive the same
    30  amount,
    31    (b) all eligible households outside of New York city shall receive the
    32  same amount and that amount shall be at least fifty  percent  more  than
    33  the rebate amount applicable to New York city households, and
    34    (c)  the  total amount provided for rebates must not exceed the annual
    35  revenue in the rebate fund.
    36    2. The department shall annually assess and report to the  legislature
    37  and  the  governor  at  least  the  following information: the number of
    38  households in each rebate category in section three thousand  fifty-four
    39  of this article; the number of households who select each delivery mech-
    40  anism set forth in section three thousand fifty-six of this article; and
    41  how the number of households compare to:
    42    (a) the incremental increase in the cost of living associated with the
    43  implementation  of  the fee established pursuant to article forty-two of
    44  this chapter and other regulatory  measures  established  under  article
    45  forty-two of this chapter;
    46    (b)  other  estimated  increases in the cost of living associated with
    47  the transition to a low-carbon economy; and
    48    (c) existing energy burdens.
    49    § 3056. Delivery of funds. 1. The department, in partnership with  the
    50  working  group, the authority and the office of temporary and disability
    51  assistance shall determine appropriate mechanisms for delivering rebates
    52  under this article. That mechanism shall ensure that:
    53    (a) Eligible moderate-income households in the first and third  house-
    54  hold  categories  set forth in section three thousand fifty-four of this
    55  article shall receive a redeemable tax credit, through a  single  annual
    56  payment.

        S. 3616                            40
 
     1    (b)  Eligible low-income households in the second and fourth household
     2  categories set forth in section three thousand fifty-four of this  arti-
     3  cle  shall receive their rebate through mechanisms that will not consti-
     4  tute income for  purposes  of  any  means-tested  government  assistance
     5  programs  that  they  may  be  receiving.  Unless an eligible low-income
     6  household opts out of such benefit under this section, the benefit shall
     7  be:
     8    (i) a transit voucher for use receiving services through the Metropol-
     9  itan Transportation Authority, Access-a-Ride, or  other  public  transit
    10  service  for  households  in the second household category under section
    11  three thousand fifty-four of this article.
    12    (ii) utility assistance or  a  weatherization  grant  for  the  fourth
    13  household category under section three thousand fifty-four of this arti-
    14  cle.
    15    2.    All  qualifying households may opt out of the default option for
    16  delivery of the rebate, and can choose to receive their  benefit  amount
    17  in  the  form  of one of the following four options: (a) utility assist-
    18  ance; (b) a weatherization grant; (c) a voucher for use with their local
    19  transit authority; or (d) a redeemable tax credit.
    20    § 3057. Reassessment of allocations.  1.  Beginning  in  two  thousand
    21  twenty-one  and  every five years thereafter, the department, in coordi-
    22  nation with the  authority,  the  office  of  temporary  and  disability
    23  assistance,  the  public service commission, and the department of envi-
    24  ronmental conservation shall perform an assessment, which shall include,
    25  at a minimum, the  following  information:  (a)  the  state-wide  energy
    26  burden for small businesses, and households by geography and income; (b)
    27  whether  such  energy  burden  has  stayed  level or decreased since the
    28  effective date of this section; (c) the uptake of energy efficiency  and
    29  renewable energy in each income category; and (d) an estimated impact on
    30  energy burden or another equivalent estimate of the proportion of house-
    31  hold  income  spent  on  energy. Based on such information and any addi-
    32  tional information that the department determines  is  appropriate,  the
    33  department  shall  determine whether the present rebate amount is appro-
    34  priate or whether it is appropriate to reduce the rebate benefit amount.
    35    2. Following any assessment under  subdivision  one  of  this  section
    36  where  the impact of the fee established is found not to increase house-
    37  hold spending, or where the energy burden has fallen, the  rebate  shall
    38  be  reduced  by  at least ten percent and the funds reallocated in equal
    39  amounts to the community just transition fund  established  pursuant  to
    40  subdivision  one of section three thousand forty-six of this chapter and
    41  the climate jobs and infrastructure fund established pursuant to  subdi-
    42  vision two of such section.
    43    §  3058. Small business tax credit. 1. Eligible small businesses shall
    44  receive a redeemable tax credit to reduce any  incremental  increase  in
    45  the cost of doing business associated with the implementation of the fee
    46  established  pursuant  to  article  forty-two  of this chapter and other
    47  regulatory measures established under the climate and community  invest-
    48  ment act or the transition to a low-carbon economy in New York state.
    49    2. Any eligible small business that incurs energy or fuel costs in the
    50  course  of  its  business,  shall be allowed a credit, to be computed as
    51  provided in subdivision three of this section, against  business  income
    52  for  each year that the fee established pursuant to article forty-two of
    53  this chapter is collected.
    54    3. The credit authorized by this section shall  equal  the  higher  of
    55  five  hundred  dollars  a  year,  or the amount computed for a household
    56  rebate.

        S. 3616                            41

     1    4. The credit created under this section may be  claimed  even  if  no
     2  taxes  are  owed by the eligible small business. Such credit may be used
     3  to reduce the tax liability of the credit claimant below zero.
     4    §  9. Severability.  If any word, phrase, clause, sentence, paragraph,
     5  section, or part of this act shall be adjudged by any court of competent
     6  jurisdiction to be invalid, such judgement shall not affect, impair,  or
     7  invalidate the remainder thereof, but shall be confined in its operation
     8  to the word, phrase, clause, sentence, paragraph, section, or part ther-
     9  eof  directly  involved in the controversy in which such judgement shall
    10  have been rendered.
    11    § 10. This act shall take effect on  the  one  hundred  eightieth  day
    12  after  it  shall have become a law and shall apply to any grants, loans,
    13  contracts and financial assistance awarded or renewed on or  after  such
    14  effective  date.  Effective  immediately, the addition, amendment and/or
    15  repeal of any rule or regulation necessary  for  the  implementation  of
    16  this  act  on its effective date are authorized to be made and completed
    17  on or before such date.
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