Prohibits proceeds from the auction or sale of carbon dioxide emission allowances pursuant to New York's participation in the regional greenhouse gas initiative (RGGI) from being transferred into the state general fund; provides that if such proceeds are transferred to the state general fund, they shall be used for the purposes directed by the RGGI.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A7611B
SPONSOR: Kelles TITLE OF BILL:
An act to amend the public authorities law, in relation to proceeds from
the auction or sale of carbon dioxide emission allowances
PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this bill is to ensure that climate and clean energy
funds raised by the state are not diverted or transferred for uses that
are inconsistent with their intended purpose.
SUMMARY OF PROVISIONS:
The public authorities law is amended to add a new section 1874 provid-
ing that funds received by the Regional Greenhouse Gas Initiative (RGGI)
shall be deposited in the energy efficiency and clean energy technology
account; further, the proceeds shall not be moved, transferred or other-
wise allocated to the credit of the general fund. The proceeds from the
auction or sale of carbon dioxide emission allowances shall be used
strictly for purposes set forth in 21 NYCRR Part 507.4 and if ever redi-
rected to the general fund their use shall be detailed in a report by
the State Comptroller. DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION
(IF APPLICABLE): The B version pushes back the effective date to March
31, 2023.
JUSTIFICATION:
Since 2015 over $200 million in RGGI proceeds have been transferred away
from the clean energy technology account and into the general fund
during the state budget process and used for other programs that are
inconsistent with their intended use. The Department of Environmental
Conservation regulates the RGGI program; NYSERDA administers the fund
where CO2 emission allowance proceeds are deposited. NYSERDA is charged
with using those funds to maximize reductions in greenhouse gases and
co-pollutants in disadvantaged communities. Furthermore, the targets set
by the state's new climate law, the CLCPA, make it even more critical
that clean energy funds be used for their intended purpose. The very
goals set forth in our state's nation-leading climate law are being
undermined by the pattern of redirecting or 'sweeping' of RGGI proceeds
into the general fund, necessitating this legislation to codify their
intended use - supporting disadvantaged communities in the transition
away from fossil fuels.
PRIOR LEGISLATIVE HISTORY:
This is a new bill.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
Neutral to the state. The legislation only affirms that deposit of annu-
al proceeds from the auction or sale of CO2 emission credits be made
into the appropriate account and used for their intended purpose.
EFFECTIVE DATE:
March 31, 2023
STATE OF NEW YORK
________________________________________________________________________
7611--B
Cal. No. 261
2021-2022 Regular Sessions
IN ASSEMBLY
May 19, 2021
___________
Introduced by M. of A. KELLES, ENGLEBRIGHT, THIELE, SEPTIMO, BURDICK,
EPSTEIN, OTIS, GRIFFIN, GLICK, COLTON, GOTTFRIED, L. ROSENTHAL --
Multi-Sponsored by -- M. of A. STECK -- read once and referred to the
Committee on Environmental Conservation -- reported and referred to
the Committee on Ways and Means -- committee discharged, bill amended,
ordered reprinted as amended and recommitted to said committee --
ordered to a third reading, amended and ordered reprinted, retaining
its place on the order of third reading
AN ACT to amend the public authorities law, in relation to proceeds from
the auction or sale of carbon dioxide emission allowances
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The public authorities law is amended by adding a new
2 section 1874 to read as follows:
3 § 1874. Carbon dioxide emission allowances. Notwithstanding any other
4 law, rule, or regulation to the contrary, proceeds collected by the
5 authority from the auction or sale of carbon dioxide emission allowances
6 allocated by the department of environmental conservation pursuant to
7 the regional greenhouse gas initiative (RGGI), implemented in New York
8 state pursuant to 21 NYCRR part 507, shall be deposited into the energy
9 efficiency and clean energy technology account established pursuant to
10 21 NYCRR part 507.4. Such proceeds shall not be moved, transferred, or
11 otherwise allocated to the state treasury to the credit of the state
12 general fund; provided, however, that if such proceeds are moved, trans-
13 ferred, or otherwise allocated to the state treasury to the credit of
14 the state general fund: (a) such proceeds shall be used for the purposes
15 directed under 21 NYCRR part 507.4; and (b) the state comptroller shall
16 submit a report to the temporary president of the senate, the speaker of
17 the assembly, and the governor containing a detailed description of the
18 use of such proceeds.
19 § 2. This act shall take effect on March 31, 2023.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD10938-04-1
