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A00077 Summary:

COSPNSRGottfried, Steck, Walker, Barron, Seawright, Williams, Rivera J, Simon, Peoples-Stokes, Hyndman
MLTSPNSRCook, De La Rosa, Rodriguez, Thiele
Add Art 12-B 289-g - 289-k, Tax L
Establishes a tax on carbon-based fuels.
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A00077 Text:

                STATE OF NEW YORK
                               2021-2022 Regular Sessions
                   IN ASSEMBLY
                                     January 6, 2021
        Introduced  by  M.  of  A.  CAHILL,  GOTTFRIED,  STECK,  WALKER, BARRON,
          GUNTHER,  HYNDMAN  -- Multi-Sponsored by -- M. of A. COOK, DE LA ROSA,
          RODRIGUEZ, THIELE -- read once and referred to the Committee  on  Ways
          and Means

        AN  ACT  to  amend  the  tax  law,  in relation to establishing a tax on
          carbon-based  fuels  to  mitigate  greenhouse  gas  emissions  causing
          anthropogenic climate change
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. The tax law is amended by adding a new article 12-B to read
     2  as follows:
     3                                ARTICLE 12-B
     4                          TAX ON CARBON-BASED FUELS
     5  Section 289-g. Definitions.
     6          289-h. Administration of emissions charges.
     7          289-i. Carbon dioxide emissions tax.
     8          289-j. Carbon dioxide emissions fund.
     9          289-k. Regulations.
    10    § 289-g. Definitions. For the purposes of this article, the  following
    11  terms shall have the following meanings:
    12    1.  "Carbon-based  fuel"  means  coal, natural gas, renewable biomass,
    13  petroleum products, and any other product that contains carbon and emits
    14  carbon dioxide, methane, nitrous oxide, or other greenhouse  gases  when
    15  combusted, that are used for fuel, heating, cooling, or industrial proc-
    16  esses, which processes shall include electricity generation.
    17    2. "Carbon-generated electricity" means electric energy produced using
    18  a  carbon-based  fuel  that  is  generated or transmitted by an electric
    19  power facility.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

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     1    3. "Carbon dioxide equivalent" means a unit of  measure  denoting  the
     2  amount  of  emissions  from a greenhouse gas, expressed as the amount of
     3  carbon dioxide by weight that produces the same global warming impact.
     4    4.  "Carbon  dioxide emissions tax" means a tax imposed on each ton of
     5  carbon dioxide equivalency.
     6    5. "Fuel distributor" means any person, firm,  association  or  corpo-
     7  ration,  that  imports or causes to be imported into the state, for use,
     8  distribution, storage or sale within the state, any carbon-based fuel as
     9  defined in subdivision one of this section; and also any  person,  firm,
    10  association  or  corporation  that  produces,  refines,  manufactures or
    11  compounds carbon-based fuel within the state.
    12    6. "Fund" means the carbon dioxide emissions fund established by  this
    13  article.
    14    7.  "Motor vehicle fuel" means fuel for the operation of a motor vehi-
    15  cle.
    16    8. "Utility" means any such gas corporation, electric corporation, gas
    17  and electric corporation, steam corporation, municipality, or any entity
    18  that, in any manner,  sells  or  facilitates  the  sale,  furnishing  or
    19  provision  of  gas  or  electronic  commodity  to residential customers;
    20  provided, however, that the term shall not include any municipality that
    21  is exempt from regulation by the public service commission  pursuant  to
    22  paragraph  g  of  subdivision  five  of section one thousand five of the
    23  public authorities law.
    24    § 289-h. Administration of emissions charges. The department of  envi-
    25  ronmental  conservation shall administer the schedules of carbon dioxide
    26  emissions charges and the carbon dioxide  emissions  fund,  both  estab-
    27  lished  pursuant to this article. Such tax shall be imposed on each fuel
    28  distributor and utility at a rate and schedule to be determined  by  the
    29  department  of environmental conservation in accordance with section two
    30  hundred eighty-nine-i of this article for a carbon-based  fuel  that  is
    31  either:
    32    1. sold by a fuel distributor to consumers in this state in the previ-
    33  ous calendar year; or
    34    2.  used to produce carbon-generated electricity that is supplied by a
    35  utility to consumers in this state in the previous calendar year.
    36    § 289-i. Carbon dioxide emissions  tax.  1.  The  department  and  the
    37  department  of environmental conservation shall establish a carbon diox-
    38  ide emissions tax on the distribution  or  sale  of  carbon-based  fuels
    39  which  shall be no less than thirty-five dollars per ton of carbon diox-
    40  ide equivalency and shall increase by fifteen dollars per ton of  carbon
    41  dioxide  equivalency  annually  to  a maximum of one hundred eighty-five
    42  dollars per ton of carbon dioxide equivalency.
    43    2. In the fourth year of implementation,  and  biannually  thereafter,
    44  the  department of environmental conservation shall publish a report for
    45  the legislature and shall post the report on an internet website  acces-
    46  sible to the public. Such report shall consider whether any increases or
    47  decreases  in  the  carbon  dioxide  emissions tax as authorized by this
    48  section are recommended to account for inflation, and to ensure progress
    49  towards reaching emissions levels to mitigate climate change in further-
    50  ance of established state policy.
    51    3. The department shall determine total taxable emissions annually for
    52  each distributor or utility using the carbon dioxide equivalent for each
    53  carbon-based fuel based on information that  shall  be  provided  in  an
    54  annual  report to the department by the distributor or utility about the
    55  amount of carbon-based fuel  or  carbon-generated  electricity  sold  to
    56  consumers  within  the  state  during  the preceding calendar year. Such

        A. 77                               3
     1  annual report shall also include any information required by the depart-
     2  ment by rule or regulation.
     3    4.  The  department  and  the department of environmental conservation
     4  shall be authorized to develop  any  rule  or  regulation  necessary  to
     5  collect and administer the carbon dioxide emissions tax authorized under
     6  this article.
     7    5. Notwithstanding any general or special law to the contrary, the tax
     8  authorized  under  this section shall not be imposed on any carbon-based
     9  fuel or source of carbon-based electricity if such imposition is  super-
    10  seded by federal law or regulation.
    11    §  289-j. Carbon dioxide emissions fund. 1. The department of environ-
    12  mental conservation shall establish the carbon dioxide  emissions  fund,
    13  and  the department's office of climate change shall serve as the fund's
    14  administrator. The department of environmental conservation shall depos-
    15  it all proceeds collected in accordance with section two hundred  eight-
    16  y-nine-i  of  this  article  into  the fund. No such proceeds shall fund
    17  government operations of the state, other than  to  pay  for  reasonable
    18  administrative costs as provided under subdivision two of this section.
    19    2.  The  office  of  climate  change shall return sixty percent of all
    20  carbon dioxide emissions charge proceeds to very low to moderate  income
    21  residents of the state in the form of tax credits in order to offset the
    22  regressive nature of such fees. The amount of such credit shall be based
    23  on estimates and averages of expense and consumption trends for very low
    24  to  moderate income residents determined by the office of climate change
    25  in conjunction with  the  department  in  accordance  with  section  two
    26  hundred eighty-nine-k of this article. Such credit shall be progressive-
    27  ly  issued to very low to moderate income residents. Such income catego-
    28  ries shall mean those with income  below  fifty  percent  for  very  low
    29  income residents, income between fifty and eighty percent for low income
    30  residents, and income between eighty-one and one hundred fifteen percent
    31  for  moderate  income residents, of the area median income as determined
    32  by the department of housing and urban development.
    33    3. The office of climate change shall distribute evenly the  remaining
    34  forty  percent  of proceeds of such fund in order to support the transi-
    35  tion to one hundred percent clean energy in the state, to  support  mass
    36  transit  to reduce carbon emissions, and to improve climate change adap-
    37  tation. Such funds shall include but not  be  limited  to  payments  and
    38  subsidies for renewable energy, energy conservation and efficiency meas-
    39  ures,  improvements  in  infrastructure,  improvements  in  mass transit
    40  capacity, agricultural  adaptation  measures,  protection  of  low-lying
    41  areas  including  coastlines, and emergency responses to extreme weather
    42  events.
    43    § 289-k. Regulations. 1. The department  and  department  of  environ-
    44  mental conservation shall promulgate such rules and regulations as shall
    45  be necessary to implement the provisions of this article.
    46    2.  The  department  and  the department of environmental conservation
    47  shall undertake all reasonable efforts  to  collect  charges  authorized
    48  pursuant  to  this  article  at  the first point of distribution or sale
    49  within the state.
    50    § 2. This act shall take effect on the ninetieth day  after  it  shall
    51  have become a law. Effective immediately, the addition, amendment and/or
    52  repeal  of  any  rule  or regulation necessary for the implementation of
    53  this act on its effective date are authorized to be made  and  completed
    54  on or before such effective date.
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