STATE OF NEW YORK ________________________________________________________________________ 8270 2017-2018 Regular Sessions IN ASSEMBLY June 5, 2017 ___________ Introduced by M. of A. ENGLEBRIGHT -- read once and referred to the Committee on Environmental Conservation AN ACT to amend the environmental conservation law, the public service law, the public authorities law, the labor law and the community risk and resiliency act, in relation to establishing the New York state climate and community protection act The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Legislative findings and declaration. The legislature here- 2 by enacts the "New York state climate and community protection act" and 3 finds and declares that: 4 1. Climate change is adversely affecting economic well-being, public 5 health, natural resources, and the environment of New York. The adverse 6 impacts of climate change include: 7 a. an increase in the severity and frequency of extreme weather 8 events, such as storms, flooding, and heat waves, which can cause direct 9 injury or death, property damage, and ecological damage (e.g., through 10 the release of hazardous substances into the environment); 11 b. rising sea levels, which exacerbate damage from storm surges and 12 flooding, contribute to coastal erosion and saltwater intrusion, and 13 inundate low-lying areas, leading to the displacement of or damage to 14 coastal habitat, property, and infrastructure; 15 c. a decline in freshwater and saltwater fish populations; 16 d. increased average temperatures, which increase the demand for air 17 conditioning and refrigeration among residents and businesses; 18 e. exacerbation of air pollution; and 19 f. an increase in the incidences of infectious diseases, asthma 20 attacks, heart attacks, and other negative health outcomes. These 21 impacts are having a detrimental effect on some of New York's largest 22 industries, including agriculture, commercial shipping, forestry, tour- 23 ism, and recreational and commercial fishing. These impacts also place EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD13069-01-7

A. 8270 2 1 additional strain on the physical infrastructure that delivers critical 2 services to the citizens of New York, including the state's energy, 3 transportation, stormwater, and wastewater infrastructure. 4 2. The severity of current climate change and the threat of additional 5 and more severe change will be affected by the actions undertaken by New 6 York and other jurisdictions to reduce greenhouse gas emissions. Accord- 7 ing to the U.S. Global Change Research Program (USGCRP) and the Inter- 8 governmental Panel on Climate Change (IPCC), substantial reductions in 9 greenhouse gas emissions will be required by mid-century in order to 10 limit global warming to no more than 2°C and ideally 1.5°C, and thus 11 minimize the risk of severe impacts from climate change. Specifically, 12 industrialized countries must reduce their greenhouse gas emissions by 13 at least 80% below 1990 levels by 2050 in order to stabilize carbon 14 dioxide equivalent concentrations at 450 parts per million--the level 15 required to stay within the 2°C target. 16 3. Action undertaken by New York to reduce greenhouse emissions will 17 have an impact on global greenhouse gas emissions and the rate of 18 climate change. In addition, such action will encourage other jurisdic- 19 tions to implement complementary greenhouse gas reduction strategies and 20 provide an example of how such strategies can be implemented. It will 21 also advance the development of green technologies and sustainable prac- 22 tices within the private sector, which can have far-reaching impacts 23 such as a reduction in the cost of renewable energy components, and the 24 creation of jobs and tax revenues in New York. 25 4. It shall therefore be a goal of the state of New York to reduce 26 greenhouse gas emissions from all anthropogenic sources 100% over 1990 27 levels by the year 2050, with an incremental target of at least a 50 28 percent reduction in climate pollution by the year 2030, in line with 29 USGCRP and IPCC projections of what is necessary to avoid the most 30 severe impacts of climate change. 31 5. Although substantial emissions reductions are necessary to avoid 32 the most severe impacts of climate change, complementary adaptation 33 measures will also be needed to address those risks that cannot be 34 avoided. Some of the impacts of climate change are already observable in 35 New York state and the northeastern United States. Annual average 36 temperatures are on the rise, winter snow cover is decreasing, heat 37 waves and precipitation are intensifying, and sea levels along New 38 York's coastline are approximately one foot higher than they were in 39 1900. New York has also experienced an increasing number of extreme and 40 unusual weather events, like Hurricanes Irene and Lee and the 41 unprecedented Superstorm Sandy in 2012, which caused at least 53 deaths 42 and $32 billion in damage in New York state. 43 6. New York should therefore minimize the risks associated with 44 climate change through a combination of measures to reduce statewide 45 greenhouse gas emissions and improve the resiliency of the state with 46 respect to the impacts and risks of climate change that cannot be 47 avoided. 48 7. Climate change especially heightens the vulnerability of disadvan- 49 taged communities, which bear environmental and socioeconomic burdens as 50 well as legacies of racial and ethnic discrimination. Actions undertaken 51 by New York state to mitigate greenhouse gas emissions should prioritize 52 the safety and health of disadvantaged communities, control potential 53 regressive impacts of future climate change mitigation and adaptation 54 policies on these communities, and prioritize the allocation of public 55 investments in these areas.

A. 8270 3 1 8. Creating good jobs and a thriving economy is a core concern of New 2 York state. Shaping the ongoing transition in our energy sector to 3 ensure that it creates good jobs and protects workers and communities 4 that may lose employment in the current transition must be key concerns 5 of our climate policy. Setting clear standards for job quality and 6 training standards encourages not only high-quality work but positive 7 economic impacts. 8 9. Workers are at the front lines of climate change. Construction 9 workers and building service workers were some of the first workers 10 dedicated to cleaning up damage inflicted by recent storms. These work- 11 ers were often operating in unsafe and toxic environments, cleaning up 12 mold, and working in unstable buildings. In order to protect the health 13 and welfare of these workers, it is in the interest of the state of New 14 York to establish safe and healthy working conditions and proper train- 15 ing for workers involved in climate change related activities. In addi- 16 tion, much of the infrastructure work preparing our state for additional 17 climate change events must happen quickly and efficiently. It is in the 18 interest of the state to ensure labor harmony and promote efficient 19 performance of work on climate change related work sites by requiring 20 workers to be well-trained and adequately compensated. 21 10. Ensuring career opportunities are created and shared geograph- 22 ically and demographically is necessary to ensure increased access to 23 good jobs for marginalized communities while making the same neighbor- 24 hoods more resilient. Climate change has a disproportionate impact on 25 low-income people, women, and workers. It is in the interest of the 26 state of New York to protect and promote the interests of these groups 27 against the impacts of climate change and severe weather events and to 28 advance our equity goals by ensuring quality employment opportunities in 29 safe working environments. 30 11. The complexity of the ongoing energy transition, the uneven 31 distribution of economic opportunity, and the disproportionate cumula- 32 tive economic and environmental burdens on communities mean that there 33 is a strong state interest in setting a floor statewide for labor stand- 34 ards, but allowing and encouraging individual agencies and local govern- 35 ments to raise standards. 36 12. By exercising a global leadership role on greenhouse gas miti- 37 gation and climate change adaptation, New York will position its econo- 38 my, technology centers, financial institutions, and businesses to bene- 39 fit from national and international efforts to address climate change. 40 New York state has already demonstrated leadership in this area by 41 undertaking efforts such as: 42 a. executive order no. 24 (2009), establishing a goal to reduce green- 43 house gas emissions 80% by the year 2050, creating a climate action 44 council, and calling for preparation of a climate action plan; 45 b. chapter 433 of the laws of 2009, establishing a state energy plan- 46 ning board and requiring the board to adopt a state energy plan; 47 c. chapter 388 of the laws of 2011, directing the department of envi- 48 ronmental conservation to promulgate rules and regulations limiting 49 emissions of carbon dioxide by newly constructed major generating facil- 50 ities; 51 d. the adoption of a state energy plan establishing clean energy goals 52 for the year 2030 aimed at reducing greenhouse gas emission levels by 53 40% from 1990 levels, producing 50% of electricity from renewable sourc- 54 es, and increasing energy efficiency from 2012 levels by 23%; 55 e. collaboration with other states on the Regional Greenhouse Gas 56 Initiative, and the development of a regional low carbon fuel standard;

A. 8270 4 1 f. creation of new offices and task forces to address climate change, 2 including the New York state office of climate change, the renewable 3 energy task force, and the sea level rise task force; and 4 g. the enactment of the Community Risk and Resiliency Act (CRRA), 5 which requires agencies to consider sea level rise and other climate-re- 6 lated events when implementing certain state programs. 7 This legislation will build upon these past developments by creating a 8 comprehensive regulatory program to reduce greenhouse gas emissions that 9 corresponds with the targets established in executive order no. 24, the 10 state energy plan, and USGCRP and IPCC projections. 11 § 2. The environmental conservation law is amended by adding a new 12 article 75 to read as follows: 13 ARTICLE 75 14 CLIMATE CHANGE 15 Section 75-0101. Definitions. 16 75-0103. New York state climate action council. 17 75-0105. Statewide greenhouse gas emissions report. 18 75-0107. Statewide greenhouse gas emissions limits. 19 75-0109. Scoping plan for statewide greenhouse gas emissions 20 reductions. 21 75-0111. Promulgation of regulations to achieve statewide green- 22 house gas emissions reductions. 23 75-0113. Climate justice working group. 24 75-0115. Implementation reporting. 25 § 75-0101. Definitions. 26 For the purposes of this article the following terms shall have the 27 following meanings: 28 1. "Allowance" means an authorization to emit, during a specified 29 year, up to one ton of carbon dioxide equivalent. 30 2. "Carbon dioxide equivalent" means the amount of carbon dioxide by 31 mass that would produce the same global warming impact as a given mass 32 of another greenhouse gas over an integrated twenty-year time frame 33 after emission, based on the best available science. 34 3. "Co-pollutants" means hazardous air pollutants produced by green- 35 house gas emissions sources. 36 4. "Council" means the New York state climate action council estab- 37 lished pursuant to section 75-0103 of this article. 38 5. "Disadvantaged communities" means communities that bear burdens of 39 negative public health effects, environmental pollution, impacts of 40 climate change, and possess certain socioeconomic criteria, as identi- 41 fied pursuant to section 75-0113 of this article. 42 6. "Emissions reduction measures" means programs, measures and stand- 43 ards, authorized pursuant to this chapter, applicable to sources or 44 categories of sources, that are designed to reduce emissions of green- 45 house gases. 46 7. "Greenhouse gas" means carbon dioxide, methane, nitrous oxide, 47 hydrofluorocarbons, perfluorocarbons, sulfur hexafluoride, and any other 48 substance emitted into the air that may be reasonably anticipated to 49 cause or contribute to anthropogenic climate change. 50 8. "Greenhouse gas emission limit" means an authorization, during a 51 specified year, to emit up to a level of greenhouse gases specified by 52 the department, expressed in tons of carbon dioxide equivalent. 53 9. "Greenhouse gas emission source" or "source" means any anthropogen- 54 ic source or category of anthropogenic sources of greenhouse gas emis- 55 sions, with the exception of agricultural emissions from livestock or

A. 8270 5 1 waste decomposition, determined by the department to be capable of being 2 monitored for compliance. 3 10. "Leakage" means a reduction in emissions of greenhouse gases with- 4 in the state that is offset by an increase in emissions of greenhouse 5 gases outside of the state. 6 11. "Greenhouse gas emission source" means any source whose emissions 7 are at a level of significance, as determined by the department, that 8 its participation in the program established under this article will 9 enable the department to effectively reduce greenhouse gas emissions and 10 monitor compliance with the statewide greenhouse gas emissions limits as 11 established in section 75-0107 of this article. Such sources shall 12 include, at minimum: 13 a. Manufacturers, producers, and/or distributors of fossil fuels; 14 b. Any electric generating facilities; 15 c. Any stationary source permitted pursuant to section 19-0311 of this 16 chapter; 17 d. Any other source, capable of being measured, that the department 18 deems to be a major contributor to greenhouse gas emissions in this 19 state. 20 12. "Market-based compliance mechanism" means any of the following: 21 a. A price on greenhouse gas emissions from regulated sources, 22 expressed as a fee per ton of carbon dioxide equivalent released in a 23 given year. 24 b. A system of market-based declining annual aggregate emissions limi- 25 tations for sources or categories of sources that emit greenhouse gases. 26 13. "Statewide greenhouse gas emissions" means the total annual emis- 27 sions of greenhouse gases produced within the state from anthropogenic 28 sources and greenhouse gases produced outside of the state that are 29 associated with the generation of electricity imported into the state. 30 Statewide emissions shall be expressed in tons of carbon dioxide equiv- 31 alents. 32 14. "Statewide greenhouse gas emissions limit" or "statewide emissions 33 limit" means the maximum allowable level of statewide greenhouse gas 34 emissions in a specified year, as determined by the department pursuant 35 to this article. 36 15. "Environmental justice advisory group" shall mean the permanent 37 environmental justice advisory group established by a chapter of the 38 laws of two thousand seventeen amending the environmental conservation 39 law relating to establishing a permanent environmental justice advisory 40 group and an environmental justice interagency coordinating council, as 41 proposed in legislative bills numbers S.3110 and A.2234, relating to 42 establishing a permanent environmental justice advisory group and an 43 environmental justice interagency coordinating council. 44 § 75-0103. New York state climate action council. 45 1. There is hereby established, within the department, the New York 46 state climate action council ("council") which shall consist of the 47 following twenty-five members: 48 a. the commissioners of transportation, health, economic development, 49 agriculture and markets, housing and community renewal, general 50 services, labor, environmental conservation, homeland security and emer- 51 gency services, the chairperson of the public service commission, the 52 superintendent of financial services, the presidents of the New York 53 state energy research and development; New York power authority; Long 54 Island power authority; secretary of state, the chairman of the metro- 55 politan transportation authority and dormitory of the state of New York, 56 or their designee.

A. 8270 6 1 b. two members appointed by the governor; 2 c. two members to be appointed by the temporary president of the 3 senate; 4 d. two members to be appointed by the speaker of the assembly; 5 e. one member to be appointed by the minority leader of the senate; 6 and 7 f. one member to be appointed by the minority leader of the assembly. 8 2. The at large members shall include at all times individuals with 9 expertise in issues relating to climate change mitigation and/or adapta- 10 tion, such as environmental justice, labor, public health and regulated 11 industries. 12 3. Council members shall receive no compensation for their services 13 but shall be reimbursed for actual and necessary expenses incurred in 14 the performance of their duties. 15 4. The chairperson of the council shall be the commissioner of envi- 16 ronmental conservation or his or her designee. 17 5. A majority of the members of the council shall constitute a quorum. 18 6. Any vacancies on the council shall be filled in the manner provided 19 for in the initial appointment. 20 7. The council shall be authorized to convene advisory panels to 21 assist or advise it in areas requiring special expertise or knowledge. 22 8. The department shall provide the council with such facilities, 23 assistance and data as will enable the council to carry out its powers 24 and duties. Additionally, all other agencies of the state or subdivi- 25 sions thereof may, at the request of the chairperson, provide the coun- 26 cil with such facilities, assistance, and data as will enable the coun- 27 cil to carry out its powers and duties. 28 9. The council shall consult with the climate justice working group 29 established in section 75-0113 of this article, the department of state 30 utility intervention unit, and the federally designated electric bulk 31 system operator. 32 10. The council shall advise the department on: 33 a. The development of statewide greenhouse gas emissions limits rules 34 and regulations, pursuant to section 75-0107 of this article, and regu- 35 lations to achieve statewide greenhouse gas emissions reductions, pursu- 36 ant to section 75-0111 of this article. 37 b. The preparation of a scoping plan for reducing greenhouse gas emis- 38 sions, pursuant to the procedures set forth in section 75-0109 of this 39 article. 40 § 75-0105. Statewide greenhouse gas emissions report. 41 1. No later than one year after the effective date of this article, 42 and each year thereafter, the department shall issue a report on state- 43 wide greenhouse gas emissions, expressed in tons of carbon dioxide 44 equivalents, from all greenhouse gas emission sources in the state, 45 including the relative contribution of each type of greenhouse gas and 46 each type of source to the statewide total. 47 2. The statewide greenhouse gas emissions report shall be a comprehen- 48 sive evaluation, informed by a variety of data, including but not limit- 49 ed to: 50 a. information relating to the use of fossil fuels by sector, includ- 51 ing for electricity generation, transportation, heating, and other 52 combustion purposes; 53 b. information relating to fugitive and vented emissions from systems 54 associated with the production, processing, transport, distribution, 55 storage, and consumption of fossil fuels, including natural gas;

A. 8270 7 1 c. information relating to emissions from non-fossil fuel sources, 2 including, but not limited to, garbage incinerators, biomass combustion, 3 landfills and landfill gas generators, and anaerobic digesters; 4 d. information relating to emissions associated with manufacturing, 5 chemical production, cement plants, and other processes that produce 6 non-combustion emissions; and 7 e. information from sources that may be required to participate in the 8 registration and reporting system pursuant to subdivision four of this 9 section. 10 3. The statewide greenhouse gas emissions report shall also include an 11 estimate of greenhouse gas emissions associated with the generation of 12 imported electricity which shall be counted as part of the statewide 13 total. 14 4. Within one year after the effective date of this article, the 15 department shall consider establishing a mandatory registry and report- 16 ing system from individual sources to obtain data on greenhouse gas 17 emissions exceeding a particular threshold. If established, such regis- 18 try and reporting system shall apply a consistent reporting threshold to 19 ensure the unbiased collection of data. 20 5. The statewide greenhouse gas emissions report shall also include an 21 estimate of what the statewide greenhouse gas emissions level was in 22 1990. 23 6. The statewide greenhouse gas emissions report shall utilize best 24 available science and methods of analysis, including the comparison and 25 reconciliation of emission estimates from all sources, fuel consumption, 26 field data, and peer-reviewed research. 27 7. The statewide greenhouse gas emissions report shall clearly explain 28 the methodology and analysis used in the department's determination of 29 greenhouse gas emissions and shall include a detailed explanation of any 30 changes in methodology or analysis, adjustments made to prior estimates, 31 as needed, and any other information necessary to establish a scientif- 32 ically credible account of change. 33 8. The department shall hold at least two public hearings to seek 34 public input regarding the methodology and analysis used in the determi- 35 nation of statewide greenhouse gas emissions, and periodically thereaft- 36 er. 37 § 75-0107. Statewide greenhouse gas emissions limits. 38 1. No later than one year after the effective date of this article, 39 the department shall, pursuant to rules and regulations promulgated 40 after at least one public hearing, establish a statewide greenhouse gas 41 emissions limit as a percentage of 1990 emissions, as estimated pursuant 42 to section 75-0105 of this article, as follows: 43 a. 2020: 85% of 1990 emissions. 44 b. 2025: 65% of 1990 emissions. 45 c. 2030: 50% of 1990 emissions. 46 d. 2035: 35% of 1990 emissions. 47 e. 2040: 20% of 1990 emissions. 48 f. 2045: 10% of 1990 emissions. 49 g. 2050: 0% of 1990 emissions. 50 2. In order to ensure the most accurate determination feasible, the 51 department shall utilize the best available scientific, technological, 52 and economic information on greenhouse gas emissions and consult with 53 the council, stakeholders, and the public in order to ensure that all 54 emissions are accurately reflected in its determination of 1990 emis- 55 sions levels.

A. 8270 8 1 § 75-0109. Scoping plan for statewide greenhouse gas emissions 2 reductions. 3 1. On or before two years of the effective date of this article, the 4 department shall prepare and approve a scoping plan outlining the 5 department's recommendations for attaining the statewide greenhouse gas 6 emissions limits in accordance with the schedule established in section 7 75-0107 of this article. 8 2. The draft scoping plan shall be developed in consultation with the 9 council, environmental justice advisory group, and the climate justice 10 working group established pursuant to section 75-0113 of this article 11 and other stakeholders. 12 a. The department and the council shall hold at least six regional 13 public comment hearings on the draft scoping plan, including three meet- 14 ings in the upstate region and three meetings in the downstate region, 15 and shall allow at least one hundred twenty days for the submission of 16 public comment. 17 b. The department shall provide meaningful opportunities for public 18 comment from all persons who will be impacted by the plan, including 19 persons living in disadvantaged communities as identified pursuant to 20 section 75-0113 of this article. 21 c. On or before thirty months of the effective date of this article, 22 the department shall submit the final scoping plan to the governor, the 23 speaker of the assembly and the temporary president of the senate and 24 post such plan on its website. 25 3. The scoping plan shall identify and make recommendations on regula- 26 tory measures and other state actions that will ensure the attainment of 27 the statewide greenhouse gas emissions limits established pursuant to 28 section 75-0107 of this article. The measures and actions considered in 29 such scoping plan shall at a minimum include: 30 a. Performance-based standards for sources of greenhouse gas emis- 31 sions, including but not limited to sources in the transportation, 32 building, industrial, commercial, and agricultural sectors. 33 b. Market-based mechanisms to reduce statewide greenhouse gas emis- 34 sions or emissions from a particular source category, including an exam- 35 ination of: the imposition of fees per unit of carbon dioxide equivalent 36 emitted and the imposition of emissions caps accompanied by a system of 37 tradable emission allowances. 38 c. Measures to reduce emissions from the electricity sector by 39 displacing fossil-fuel fired electricity with renewable electricity or 40 energy efficiency. 41 d. Land-use and transportation planning measures aimed at reducing 42 greenhouse gas emissions from motor vehicles. 43 e. Measures to achieve long-term carbon sequestration and/or promote 44 best management practices in land use, agriculture and forestry. 45 f. Verifiable, enforceable and voluntary emissions reduction measures. 46 4. In developing such plan the department shall: 47 a. Consider all relevant information pertaining to greenhouse gas 48 emissions reduction programs in other states, regions, localities, and 49 nations. 50 b. Evaluate, using the best available economic models, emission esti- 51 mation techniques and other scientific methods, the total potential 52 costs and potential economic and non-economic benefits of the plan for 53 reducing greenhouse gases, and make such evaluation publicly available. 54 In conducting this evaluation, the department shall quantify: 55 i. The economic and social benefits of greenhouse gas emissions 56 reductions, taking into account the federal social cost of carbon, any

A. 8270 9 1 other tools that the department deems useful and pertinent for this 2 analysis, and any environmental, economic and public health co-benefits 3 (such as the reduction of co-pollutants and the diversification of ener- 4 gy sources); and 5 ii. The costs of implementing proposed emissions reduction measures, 6 and the emissions reductions that the department anticipates achieving 7 through these measures. 8 c. Take into account the relative contribution of each source or 9 source category to statewide greenhouse gas emissions, and the potential 10 for adverse effects on small businesses, and recommend a de minimis 11 threshold of greenhouse gas emissions below which emission reduction 12 requirements will not apply. 13 d. Identify measures to maximize reductions of both greenhouse gas 14 emissions and co-pollutants in disadvantaged communities as identified 15 pursuant to section 75-0113 of this article. 16 5. The department shall update its plan for achieving the statewide 17 greenhouse gas emissions limits at least once every five years and shall 18 make such updates available to the governor, the speaker of the assembly 19 and the temporary president of the senate and post such updates on its 20 website. 21 § 75-0111. Promulgation of regulations to achieve statewide greenhouse 22 gas emissions reductions. 23 1. No later than three years after the effective date of this article, 24 the department, after public workshops and consultation with the coun- 25 cil, the environmental justice advisory group, and the climate justice 26 working group established pursuant to section 75-0113 of this article, 27 representatives of regulated entities, community organizations, environ- 28 mental groups, health professionals, labor unions, municipal corpo- 29 rations, trade associations and other stakeholders, shall, after no less 30 than two public hearings, promulgate rules and regulations to ensure 31 compliance with the statewide emissions reduction limits. 32 2. The regulations promulgated by the department pursuant to this 33 section shall: 34 a. Ensure that the aggregate emissions of greenhouse gases from green- 35 house gas emission sources will not exceed the statewide greenhouse gas 36 emissions limits established in section 75-0107 of this article. 37 b. Include legally enforceable emissions limits, performance stand- 38 ards, or measures or other requirements to control emissions from green- 39 house gas emission sources. 40 c. Include measures to reduce emissions from greenhouse gas emission 41 sources that have a cumulatively significant impact on statewide green- 42 house gas emissions, such as internal combustion vehicles that burn 43 gasoline or diesel fuel and boilers or furnaces that burn oil or natural 44 gas. 45 3. In promulgating these regulations, the department shall: 46 a. Design and implement all regulations in a manner that seeks to be 47 equitable, to minimize costs and to maximize the total benefits to New 48 York, and encourages early action to reduce greenhouse gas emissions. 49 b. Ensure that greenhouse gas emissions reductions achieved are real, 50 permanent, quantifiable, verifiable, and enforceable by the department. 51 c. Ensure that activities undertaken to comply with the regulations do 52 not result in a net increase in co-pollutant emissions or otherwise 53 disproportionately burden disadvantaged communities as identified pursu- 54 ant to section 75-0113 of this article. 55 d. Prioritize measures to maximize net reductions of greenhouse gas 56 emissions and co-pollutants in disadvantaged communities as identified

A. 8270 10 1 pursuant to section 75-0113 of this article and encourage early action 2 to reduce greenhouse gas emissions and co-pollutants. 3 e. Minimize leakage. 4 4. Market-based compliance mechanisms. 5 a. The department may consider provisions for the use of market-based 6 compliance mechanisms to comply with the regulations. 7 b. Prior to the inclusion of any market-based compliance mechanism in 8 the regulations, to the extent feasible and in the furtherance of 9 achieving the statewide greenhouse gas emissions limit, the department 10 shall do all of the following: 11 i. Consider the potential for direct, indirect, and cumulative emis- 12 sion impacts from these mechanisms, including localized impacts in 13 disadvantaged communities as identified pursuant to section 75-0113 of 14 this article; 15 ii. Design any market-based compliance mechanism to prevent any 16 increase in the emissions of co-pollutants; and 17 iii. Maximize additional environmental, public health, and economic 18 benefits for the state of New York and for disadvantaged communities 19 identified pursuant to section 75-0113 of this article, as appropriate. 20 c. Such regulations shall include provisions governing how market- 21 based compliance mechanisms may be used by regulated entities subject to 22 greenhouse gas emissions limits and mandatory emission reporting 23 requirements to achieve compliance with their greenhouse gas emissions 24 limits. 25 d. The department shall ensure that, at a minimum, forty percent of 26 any funds collected pursuant to any market-based compliance regulations 27 promulgated under this section as a result of legislative authorization, 28 funds authorized by the public service commission to be collected solely 29 for and directed to the New York state energy research and development 30 authority and proceeds collected by the New York state energy research 31 and development authority from the auction or sale of carbon dioxide 32 emission allowances allocated by the department are invested in a manner 33 which will benefit disadvantaged communities, identified pursuant to 34 section 75-0113 of this article, consistent with the purposes of this 35 article, including, but not limited to, increased access to renewable 36 energy, energy efficiency, weatherization, zero- and low-emission trans- 37 portation, and adaptation opportunities. The department shall consult 38 with the climate justice working group in developing and carrying out 39 such investments. 40 § 75-0113. Climate justice working group. 41 1. There is hereby created within the department, no later than six 42 months after the effective date of this article, a "disadvantaged commu- 43 nities working group." Such working group will be comprised of represen- 44 tatives from: environmental justice communities, the department, the 45 department of health, the New York state energy and research development 46 authority, and the department of labor. 47 a. Environmental justice community representatives shall be members of 48 communities of color, low-income communities, and communities bearing 49 disproportionate pollution and climate change burdens, or shall be 50 representatives of community-based organizations with experience and a 51 history of advocacy on environmental justice issues, and shall include 52 at least three representatives from New York city communities, three 53 representatives from rural communities, and three representatives from 54 upstate urban communities. 55 b. The working group, in consultation with the department, the depart- 56 ments of health and labor, the New York state energy and research devel-

A. 8270 11 1 opment authority, and the environmental justice advisory group, will 2 establish criteria to identify disadvantaged communities for the 3 purposes of co-pollutant reductions, greenhouse gas emissions 4 reductions, regulatory impact statements, and the allocation of invest- 5 ments related to this article. 6 c. Disadvantaged communities shall be identified based on geographic, 7 public health, environmental hazard, and socioeconomic criteria, which 8 shall include but are not limited to: 9 (1) areas burdened by cumulative environmental pollution and other 10 hazards that can lead to negative public health effects; 11 (2) areas with concentrations of people that are of low income, high 12 unemployment, high rent burden, low levels of home ownership, low levels 13 of educational attainment, or members of groups that have historically 14 experienced discrimination on the basis of race or ethnicity; and 15 (3) areas vulnerable to the impacts of climate change such as flood- 16 ing, storm surges, and urban heat island effects. 17 2. Before finalizing the criteria for identifying disadvantaged commu- 18 nities and identifying disadvantaged communities pursuant to subdivision 19 one of this section, the department shall publish draft criteria and a 20 draft list of disadvantaged communities and make such information avail- 21 able on its website. 22 a. The department shall hold at least six regional public hearings on 23 the draft criteria and the draft list of disadvantaged communities, 24 including three meetings in the upstate region and three meetings in the 25 downstate region, and shall allow at least one hundred twenty days for 26 the submission of public comment. 27 b. The department shall also ensure that there are meaningful opportu- 28 nities for public comment for all persons who will be impacted by the 29 criteria, including persons living in areas that may be identified as 30 disadvantaged communities under the proposed criteria. 31 3. The group will meet no less than annually to review the criteria 32 and methods used to identify disadvantaged communities and may modify 33 such methods to incorporate new data and scientific findings. The disad- 34 vantaged communities working group shall review identities of disadvan- 35 taged communities and modify such identities as needed. 36 § 75-0115. Implementation reporting. 37 1. The department shall, not less than every four years, publish a 38 report which shall include recommendations regarding the implementation 39 of greenhouse gas reduction measures. 40 2. The report shall, at minimum, include: 41 a. Whether the state is on track to meet the statewide greenhouse gas 42 emissions limits established in section 75-0107 of this article. 43 b. An assessment of existing regulations and whether modifications are 44 needed to ensure fulfillment of the statewide greenhouse gas emissions 45 limits. 46 c. An overview of social benefits from the regulations or other meas- 47 ures, including reductions in greenhouse gas emissions and copollutants, 48 diversification of energy sources, and other benefits to the economy, 49 environment, and public health, including women's health. 50 d. An overview of compliance costs for regulated entities and for the 51 department and other state agencies. 52 e. Whether regulations or other greenhouse gas reduction measures 53 undertaken are equitable, minimize costs and maximize the total benefits 54 to the state, and encourage early action.

A. 8270 12 1 f. Whether activities undertaken to comply with state regulations 2 disproportionately burden disadvantaged communities as identified pursu- 3 ant to section 75-0113 of this article. 4 g. An assessment of local benefits and impacts of any reductions in 5 co-pollutants related to reductions in statewide and local greenhouse 6 gas emissions. 7 h. An assessment of disadvantaged communities' access to or community 8 ownership of the services and commodities identified in section eight of 9 the chapter of the laws of two thousand seventeen which added this arti- 10 cle. 11 i. Whether entities that have voluntarily reduced their greenhouse gas 12 emissions prior to the implementation of this article receive appropri- 13 ate credit for early voluntary reductions. 14 j. Recommendations for future regulatory and policy action. 15 3. In preparing this report, the department shall, at a minimum, 16 consult with the council, and the climate justice working group estab- 17 lished in section 75-0113 of this article. 18 4. The report shall be published and posted on the department's 19 website. 20 § 3. Subdivision 1 of section 54-1523 of the environmental conserva- 21 tion law is amended by adding a new paragraph h to read as follows: 22 h. to establish and implement easily-replicated renewable energy 23 projects, including solar arrays, heat pumps and wind turbines in public 24 low-income housing in suburban, urban and rural areas. 25 § 4. The public service law is amended by adding a new section 66-o to 26 read as follows: 27 § 66-o. Establishment of a renewable energy program. 1. As used in 28 this section: 29 (a) "load serving entity" means any entity that secures energy to 30 serve the electrical energy requirements of end-use customers in New 31 York state; 32 (b) "prevailing rate of wages" shall have the same meaning as such 33 term is defined in paragraph a of subdivision five of section two 34 hundred twenty of the labor law; and 35 (c) "renewable energy systems" means systems that generate electricity 36 or thermal energy through use of the following technologies: solar ther- 37 mal, photovoltaics, wind, hydroelectric, geothermal electric, geothermal 38 ground source heat, tidal energy, wave energy, ocean thermal, offshore 39 wind and fuel cells which do not utilize a fossil fuel resource in the 40 process of generating electricity. 41 2. No later than January first, two thousand eighteen, the commission 42 shall establish a program to require that a minimum of fifty percent of 43 the statewide electric generation secured by load serving entities to 44 meet the electrical energy requirements of all end-use customers in New 45 York state in two thousand thirty shall be generated by renewable energy 46 systems. 47 The commission shall set annual minimum percentage levels of electric- 48 ity generated by renewable energy systems and delivered to end-use 49 customers in New York state for each year of the program. 50 3. No later than July first, two thousand nineteen and every two years 51 thereafter, the commission shall, after notice and provision for the 52 opportunity to comment, issue a comprehensive review of the program 53 established pursuant to this section. The commission shall determine, 54 among other matters: (a) progress in meeting the overall annual targets 55 for deployment of renewable energy systems; (b) distribution of systems 56 by size and load zone; and (c) annual funding commitments and expendi-

A. 8270 13 1 tures. The commission shall evaluate the annual targets established 2 pursuant to subdivision two of this section and determine whether the 3 annual targets should be accelerated, increased or extended, taking into 4 consideration load modifications associated with, but not limited to, 5 energy efficiency measures and the electrification of transportation, 6 heating systems and industrial processes. 7 4. The commission may temporarily suspend or modify the obligations 8 under such program provided that the commission, after conducting a 9 hearing as provided in section twenty of this chapter, makes a finding 10 that the program impedes the provision of safe and adequate electric 11 service or that there is a significant increase in arrears or service 12 disconnections that the commission determines is related to the program. 13 5. Every contractor employed pursuant to this section, not otherwise 14 required to pay laborers, workers or mechanics the prevailing rate of 15 wages pursuant to article eight of the labor law, shall pay employees 16 under contract for the development of renewable energy systems rated at 17 two hundred fifty kilowatts or more, a wage of not less than the 18 prevailing rate of wages for such work in the locality where such 19 installation occurs. This requirement shall be in effect for the dura- 20 tion of the receipt by the contractor of the incentives established 21 pursuant to this section and in no event shall such requirement extend 22 beyond the availability of such incentives. Every contractor subject to 23 the provisions of this subdivision shall maintain payroll records in 24 accordance with section two hundred twenty of the labor law. 25 § 5. Section 1005 of the public authorities law is amended by adding a 26 new subdivision 26 to read as follows: 27 26. Renewable energy program. As deemed feasible and advisable by the 28 trustees, no later than January first, two thousand eighteen, the 29 authority shall secure energy to serve the electrical energy require- 30 ments of its end-use customers in accordance with the renewable energy 31 program as set forth and defined in section sixty-six-o of the public 32 service law. 33 § 6. Sections 1020-ii, 1020-jj and 1020-kk of the public authorities 34 law, as renumbered by chapter 388 of the laws of 2011, are renumbered 35 sections 1020-jj, 1020-kk and 1020-ll and a new section 1020-ii is added 36 to read as follows: 37 § 1020-ii. Renewable energy program. The authority and all load serv- 38 ing entities that secure energy to serve the electrical energy require- 39 ments of end-use customers in its service territory shall comply with 40 the renewable energy program as set forth and defined in section sixty- 41 six-o of the public service law. 42 § 6-a. Subdivision 1 of section 1020-s of the public authorities law, 43 as amended by section 9 of part A of chapter 173 of the laws of 2013, is 44 amended to read as follows: 45 1. The rates, services and practices relating to the electricity 46 generated by facilities owned or operated by the authority shall not be 47 subject to the provisions of the public service law or to regulation by, 48 or the jurisdiction of, the public service commission, except to the 49 extent (a) article seven of the public service law applies to the siting 50 and operation of a major utility transmission facility as defined there- 51 in, (b) article ten of such law applies to the siting of a generating 52 facility as defined therein, (c) section eighteen-a of such law provides 53 for assessment for certain costs, property or operations, [and] (d) to 54 the extent that the department of public service reviews and makes 55 recommendations with respect to the operations and provision of services 56 of, and rates and budgets established by, the authority pursuant to

A. 8270 14 1 section three-b of such law and (e) that section sixty-six-o of the 2 public service law applies to the authority and load serving entities 3 that secure energy to serve the electrical energy requirements of end- 4 use customers within the authority's jurisdiction. 5 § 7. The labor law is amended by adding a new article 8-B to read as 6 follows: 7 ARTICLE 8-B 8 LABOR AND JOB STANDARDS AND WORKER PROTECTION 9 Section 228. Labor and job standards and worker protection. 10 § 228. Labor and job standards and worker protection. 1. All state 11 agencies involved in implementing the New York state climate and commu- 12 nity protection act shall assess and implement strategies to increase 13 employment opportunities and improve job quality. Within one hundred 14 twenty days of the effective date of this section, all state agencies, 15 offices, authorities, and divisions shall report to the legislature on: 16 a. steps they will take to ensure compliance with this section; and 17 b. regulations necessary to ensure that they prioritize the statewide 18 goal of creating good jobs and increasing employment opportunities. 19 2. In considering and issuing permits, licenses, regulations, 20 contracts, and other administrative approvals and decisions pursuant to 21 the New York state climate and community protection act, all state agen- 22 cies, offices, authorities, and divisions shall apply the following 23 labor, training, and job quality standards to the following project 24 types: public work; projects in receipt of more than one hundred thou- 25 sand dollars in total financial assistance; or to projects with a total 26 value of more than ten million dollars; and privately-financed projects 27 on public property. 28 a. the payment of no less than prevailing wages for all employees in 29 construction and building, consistent with article eight of the this 30 chapter, and building services, consistent with article nine of this 31 chapter; 32 b. the inclusion of contract language requiring contractors to estab- 33 lish labor harmony policies; dispute resolution mechanisms; prevailing 34 wage compliance; safety policies; workers compensation insurance 35 (including review of contractor experience rating and other factors); 36 and apprenticeship program appropriate for crafts employed. Procurement 37 rules should encourage bundling of small contracts and projects to 38 improve the efficiency of compliance; 39 c. apprenticeship utilization: 40 i. that all contractors and subcontractors, including those that 41 participate in power purchase agreements, energy performance contracts, 42 or other similar programs, participate in apprenticeship programs in the 43 trades in which they are performing work; 44 ii. maximum use of apprentices as per department of labor approved 45 ratios; 46 iii. encouragement of affiliated pre-apprentice direct entry programs, 47 including but not limited to EJM Construction Skills; NYC Helmets to 48 Hardhats, and Nontraditional Employment for Women (NEW) for the recruit- 49 ment of local and/or disadvantaged workers; 50 iv. existing workforce development programs, including those at the 51 New York state energy research and development authority, should be made 52 to conform to these standards. 53 3. The commissioner, the fiscal officer and other relevant agencies 54 shall promulgate such regulations as are necessary to implement and 55 administer compliance with the provisions of this section. The depart- 56 ment and the fiscal officer shall coordinate with organized labor and

A. 8270 15 1 local and county level governments to implement a system to track 2 compliance, accept reports of non-compliance for enforcement action, and 3 report annually on the adoption of these standards to the legislature 4 starting one year from the effective date of this section. 5 a. For the purposes of this section, "fiscal officer" shall mean the 6 industrial commissioner, except for construction and building service 7 work performed by or on behalf of a city, in which case "fiscal officer" 8 shall mean the comptroller or other analogous officer of such city. 9 b. The provisions of the contract by the recipient of financial 10 assistance pertaining to prevailing wages are to be considered a 11 contract for the benefit of construction and building service workers, 12 upon which such workers shall have the right to maintain action for the 13 difference between the prevailing wage rate of pay, benefits, and paid 14 leave and the rates of pay, benefits, and paid leave actually received 15 by them, and including attorney's fees. 16 c. i. Where a recipient of financial assistance contracts building 17 service work to a building service contractor, the contractor is held to 18 the same obligations with respect to prevailing wages as the recipient. 19 The recipient must include terms establishing this obligation within any 20 contract signed with a contractor. 21 ii. Where a recipient of financial assistance contracts for 22 construction, excavation, demolition, rehabilitation, repair, reno- 23 vation, alteration or improvement to a subcontractor, the subcontractor 24 is held to the same obligations with respect to prevailing wages as the 25 recipient. The recipient must include terms establishing this obligation 26 within any contract signed with a subcontractor. 27 4. For the purposes of this section "financial assistance" means any 28 provision of public funds to any person, individual, proprietorship, 29 partnership, joint venture, corporation, limited liability company, 30 trust, association, organization, or other entity that receives finan- 31 cial assistance, or any assignee or successor in interest of real prop- 32 erty improved or developed with financial assistance, for economic 33 development within the state, including but not limited to cash payments 34 or grants, bond financing, tax abatements or exemptions, including but 35 not limited to abatements or exemptions from real property, mortgage 36 recording, sales, and use taxes, or the difference between any payments 37 in lieu of taxes and the amount of real property or other taxes that 38 would have been due if the property were not exempted from such taxes, 39 tax increment financing, filing fee waivers, energy cost reductions, 40 environmental remediation costs, write-downs in the market value of 41 buildings or land, or the cost of capital improvements related to real 42 property for which the state would not pay absent the development 43 project, and includes both discretionary and as of right assistance. The 44 provisions of this section shall only apply to projects receiving more 45 than one hundred thousand dollars in total financial assistance, or to 46 projects with a total project value of more than ten million dollars. 47 5. The commissioner shall evaluate whether there are additional stand- 48 ards that could be applied to increase wage and benefit standards or to 49 encourage a safe, well-trained, and adequately compensated workforce. 50 6. Nothing set forth in this section shall be construed to impede, 51 infringe, or diminish the rights and benefits which accrue to employees 52 through bona fide collective bargaining agreements, or otherwise dimin- 53 ish the integrity of the existing collective bargaining relationship. 54 7. Nothing set forth in this section shall preclude a local government 55 from setting additional standards that expand on these state-wide stand- 56 ards.

A. 8270 16 1 § 8. Report on barriers to, and opportunities for, community ownership 2 of services and commodities in disadvantaged communities. 1. On or 3 before two years of the effective date of this act, the department of 4 environmental conservation, with input from relevant state agencies, the 5 environmental justice advisory group as defined in section 75-0101 of 6 the environmental conservation law, the climate justice working group as 7 defined in section 75-0113 of the environmental conservation law and 8 Climate Action Council established in article 75 of the environmental 9 conservation law, and following at least two public hearings, shall 10 prepare a report on barriers to, and opportunities for, access to or 11 community ownership of the following services and commodities in disad- 12 vantaged communities as identified in article 75 of the environmental 13 conservation law: 14 a. Distributed renewable energy generation. 15 b. Energy efficiency and weatherization investments. 16 c. Zero-emission and low-emission transportation options. 17 d. Adaptation measures to improve the resilience of homes and local 18 infrastructure to the impacts of climate change including but not limit- 19 ed to microgrids. 20 e. Other services and infrastructure that can reduce the risks associ- 21 ated with climate-related hazards, including but not limited to: 22 i. Shelters and cool rooms during extreme heat events; 23 ii. Shelters during flooding events; and 24 iii. Medical treatment for asthma and other conditions that could be 25 exacerbated by climate-related events. 26 2. The report, which shall be submitted to the governor, the speaker 27 of the assembly and the temporary president of the senate and posted on 28 the department of environmental conservation website, shall include 29 recommendations on how to increase access to the services and commod- 30 ities. 31 3. The department of environmental conservation shall amend the scop- 32 ing plan for statewide greenhouse gas emissions reductions in accordance 33 with the recommendations included in the report. 34 § 9. Climate change actions by state agencies. 1. All state agencies 35 shall assess and implement strategies to reduce their greenhouse gas 36 emissions. 37 2. In considering and issuing permits, licenses, and other administra- 38 tive approvals and decisions, including but not limited to the execution 39 of grants, loans, and contracts, all state agencies, offices, authori- 40 ties, and divisions shall consider whether such decisions are inconsist- 41 ent with or will interfere with the attainment of the statewide green- 42 house gas emissions limits established in article 75 of the 43 environmental conservation law. Where such decisions are deemed to be 44 inconsistent with or will interfere with the attainment of the statewide 45 greenhouse gas emissions limits, each agency, office, authority, or 46 division shall provide a detailed statement of justification as to why 47 such limits/criteria may not be met, and identify alternatives or green- 48 house gas mitigation measures to be required where such project is 49 located. 50 3. In considering and issuing permits, licenses, and other administra- 51 tive approvals and decisions, including but not limited to the execution 52 of grants, loans, and contracts, pursuant to article 75 of the environ- 53 mental conservation law, all state agencies, offices, authorities, and 54 divisions shall not disproportionately burden disadvantaged communities 55 as identified pursuant to subdivision 5 of section 75-0101 of the envi- 56 ronmental conservation law. All state agencies, offices, authorities,

A. 8270 17 1 and divisions shall also prioritize reductions of greenhouse gas emis- 2 sions and co-pollutants in disadvantaged communities as identified 3 pursuant to such subdivision 5 of section 75-0101 of the environmental 4 conservation law. 5 § 10. Authorization for other state agencies to promulgate greenhouse 6 gas emissions regulations. 1. The public service commission, the New 7 York state energy research and development authority, the department of 8 health, the department of transportation, the department of state, the 9 department of economic development, the department of agriculture and 10 markets, the department of financial services, the office of general 11 services, the division of housing and community renewal, the public 12 utility authorities established pursuant to titles 1, 1-A, 1-B, 11, 13 11-A, 11-B, 11-C and 11-D of article 5 of the public authorities law and 14 any other state agency may promulgate regulations to contribute to 15 achieving the statewide greenhouse gas emissions limits established in 16 article 75 of the environmental conservation law. Provided, however, any 17 such regulations shall not limit the department of environmental conser- 18 vation's authority to regulate and control greenhouse gas emissions 19 pursuant to article 75 of the environmental conservation law. 20 § 11. Chapter 355 of the laws of 2014, constituting the "community 21 risk and resiliency act", is amended by adding two new sections 17-a and 22 17-b to read as follows: 23 § 17-a. The department of environmental conservation shall take 24 actions to promote adaptation and resilience, including: 25 (a) actions to help state agencies and other entities assess the 26 reasonably foreseeable risks of climate change on any proposed projects, 27 taking into account issues such as: sea level rise, tropical and extra- 28 tropical cyclones, storm surges, flooding, wind, changes in average and 29 peak temperatures, changes in average and peak precipitation, public 30 health impacts, and impacts on species and other natural resources. 31 (b) identifying the most significant climate-related risks, taking 32 into account the probability of occurrence, the magnitude of the poten- 33 tial harm, and the uncertainty of the risk. 34 (c) measures that could mitigate significant climate-related risks, as 35 well as a cost-benefit analysis and implementation of such measures. 36 § 17-b. Major permits for the regulatory programs of subdivision three 37 of section 70-0107 of the environmental conservation law shall require 38 applicants to demonstrate that future physical climate risk has been 39 considered. In reviewing such information the department may require the 40 applicant to mitigate significant risks to public infrastructure and/or 41 services, private property not owned by the applicant, adverse impacts 42 on disadvantaged communities, and/or natural resources in the vicinity 43 of the project. 44 § 12. Nothing in this act shall limit the existing authority of a 45 state entity to adopt and implement greenhouse gas emissions reduction 46 measures. 47 § 13. Nothing in this act shall relieve any person, entity, or public 48 agency of compliance with other applicable federal, state, or local laws 49 or regulations, including state air and water quality requirements, and 50 other requirements for protecting public health or the environment. 51 § 14. Review under this act may be had in a proceeding under article 52 78 of the civil practice law and rules at the instance of any person 53 aggrieved. 54 § 15. Severability. If any word, phrase, clause, sentence, paragraph, 55 section, or part of this act shall be adjudged by any court of competent 56 jurisdiction to be invalid, such judgement shall not affect, impair, or

A. 8270 18 1 invalidate the remainder thereof, but shall be confined in its operation 2 to the word, phrase, clause, sentence, paragraph, section, or part ther- 3 eof directly involved in the controversy in which such judgement shall 4 have been rendered. 5 § 16. This act shall take effect on the same date and in the same 6 manner as a chapter of the laws of 2017, amending the environmental 7 conservation law, in relation to establishing a permanent environmental 8 justice advisory group and an environmental justice interagency coordi- 9 nating council, as proposed in legislative bills numbers A.2234 and 10 S.3110, takes effect; provided further, the provisions of section seven 11 of this act shall take effect on the one hundred eightieth day after it 12 shall have become a law and shall apply to any grants, loans, and 13 contracts and financial assistance awarded or renewed on or after such 14 effective date.