The DEC and NYSERDA are developing the new emissions credit auction program to meet GHG reduction and equity requirements. According to the regulators, large-scale GHG emitters and distributors of heating and transportation fuels will be required to purchase allowances for the emissions associated with their activities. The objective is to “incentivize” businesses and other entities to transition to lower-carbon alternatives.
New York envisions using the proceeds from the new fees in two ways.
First, a “Consumer Climate Action Account” will be created to deliver at least 30% in future Cap-and-Invest proceeds to New Yorkers every year to mitigate consumer costs.
Second, a “Climate Investment Account” will direct the remaining two-thirds of future Cap-and-Invest proceeds to support the transition to a less carbon-intensive economy.
The state agencies are proposing three regulations to implement an economywide Cap-and-Invest program (NYCI) which entail:
· DEC Mandatory Greenhouse Gas Reporting Rulemaking (Part 253)
· DEC Economywide NYCI Rulemaking (Part 252)
· NYSERDA Auction Rulemaking (Part 510)