BILL NUMBER: S2638
SPONSOR: MAY
 
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:
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 allow-
ances shall be used strictly for purposes set forth in 21 NYCRR Part
507.4 and if ever redirected to the general fund their use shall be
detailed in a report by the State Comptroller.
 
JUSTIFICATION:
Since 2015 over $200 million in RGG1 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.
 
FISCAL IMPLICATIONS:
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.
 
LEGISLATIVE HISTORY:
2023-2024 - S.2073 (MAY)
2021-2022- S.6268 (MAY) / A.7611 (Kelles)
 
EFFECTIVE DATE:
March 31, 2026