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    The Albany 2011Legislative Session:

    A Progress Report

    For New Yorks EnvironmentNEW YORK LEAGUE

    OF CONSERVATION VOTERSEDUCATION FUND

    www.nylcvef.org

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    New York League of Conservation Voters Education Fund

    ABOUT THENEW YORK LEAGUE

    OF CONSERVATION VOTERS

    EDUCATION FUND

    The New York League of Conservation VotersEducation Fund (NYLCVEF) engages and educatesNew Yorkers on environmental issues and theenvironmental decision-making processes at the

    local, regional, state and federal government levels.NYLCVEF fosters open, nonpartisan discussion onenvironmental policy and empowers New Yorkers tobe effective advocates for the environment.

    New York League of Conservation Voters

    Education Fund30 Broad St., 30th Fl.New York, NY 10004Phone (212) 361-6350

    Fax (212) [email protected]

    Marcia Bystryn, PresidentRicardo Gotla, Legislative Director

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    2011 Legislative Progress Report

    In January, the New York League of Conservation Voters Education Fund (NYLCVEF)

    issued its 2011 New York State Policy Agenda. That agenda encompassed a diverse

    set of legislative and policy goals to build a clean-energy economy and foster

    sustainable development. It was informed by a diverse group of environmental and

    conservation organizations, the business community, state legislators and otherexperts. This Legislative Progress Report tracks progress made on that agenda as

    well as other complementary legislation that advanced over the course of the

    session.

    Overall, the 2011 legislative session was a good one for the environment, both in

    terms of funding and legislation. The Environmental Protection Fund (EPF) -- the

    state's principal source of conservation dollars - remained steady at $134 million.

    This stands in stark contrast to the across-the-board cuts seen elsewhere this year,

    as well as the 40 percent EPF reduction in 2010. NYLCVEF strongly opposes the

    diversion of dedicated funds (such as the EPF) into the state's general fund, a

    process referred to as a sweep. The budget also avoided a sweep of Regional

    Greenhouse Gas Initiative (RGGI) proceeds; funds from this carbon-auction

    program are intended to support energy efficiency and clean-energy innovation.

    However, one unfortunate sweep did occur: a $100 million diversion of

    Metropolitan Transportation Authority (MTA) funds has shortchanged the nation'slargest mass transit system.

    As for sustainability legislation, several key policy priorities passed both houses.

    Complete Streets will require transportation planners to consider multiple users -

    cyclists, pedestrians and the elderly - when designing New York roads. The

    Department of Conservation (DEC) is better positioned to protect New York's water

    supply after the unanimous passage of a bill to regulate large-scale water

    withdrawals. An important energy package passed the Legislature in the final hourscalled Power NY. It renews New York's expired power plant siting law and

    establishes a financing mechanism for a comprehensive energy-efficiency retrofit

    program. Gov. Andrew Cuomo is expected to sign these bills into law shortly.

    Executive Summary

    Page 3

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    The Legislature did not pass the New York Solar Industry Development and Jobs Act,

    a bill that would have positioned the Empire State as a clean-energy leader, created

    tens of thousands of new jobs and generated billions of dollars in economic activity.

    However, legislators' attention to solar energy over the course of the 2011 session -- as

    well as the ultimate inclusion of a solar study provision in Power NY -- indicates real

    interest in advancing New York's clean-energy future. Power NY had over 65 sponsorsand co-sponsors from both sides of the aisle, a significant display of support.

    NYLCVEF looks forward to working with the Legislature to build on 2011's victories

    as we head toward the 2012 session. Particularly, we expect the Legislature to

    increase EPF funding, pass the New York Solar Industry Development and Jobs Act

    and take concrete steps to safeguard New York's natural resources from potential

    harm related to natural gas drilling.

    Page 4

    New York League of Conservation Voters Education Fund

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    2011 Legislative Progress Report

    Ratings Key

    A: Achieved all policy goals.

    B: Achieved most of the policy goals.

    C: Adequate progress shown in meeting policy goals.

    D: Prior gains in this policy area were significantly diminished.F: Actions were harmful to the environment.

    How the

    Legislature Fared

    Clean Energy & Energy Efficiency B

    Climate Change & Air Quality B

    Natural Resource Protection B

    Transportation B

    OVERALL B

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    Clean Energy & Energy Efficiency

    Grade: B

    Page 6

    New York League of Conservation Voters Education Fund

    GOAL:

    Pass a statewide power plant siting bill that expeditesand prioritizes renewable energy (S.5844/A.8510).

    GRADE: A

    Passed Senate, June 22, 2011; Passed Assembly, June 22, 2011; passed as part of

    Power NY. Expected to be signed into law by Gov. Andrew Cuomo.

    This legislation reauthorizes and updates Public Service Law Article X, which

    expired in 2003 and governs the siting of major electric power generation facilities.

    Modernizations to the law emphasize public participation and environmental

    justice, all while streamlining the certification process. Despite several previous

    efforts to reinstate Article X, none have succeeded until this year. Among its

    improvements, the new Article X includes reporting requirements for environmen-

    tal impact upon a proposed site, including plans to mitigate, and where possible,

    eliminate any adverse environmental effects. Additionally, Article X requires the

    applicant to provide site alternatives, and devotes additional studies and resources

    to environmental justice, including intervenor funding provided by the applicant.The new law also authorizes DEC to adopt regulations to target emissions

    reductions, and will promote new zero-emissions and renewable-energy sources,

    particularly new wind projects.

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    2011 Legislative Progress Report

    GOAL:

    Pass legislation that enables an on-bill recovery mechanismfor the "Green Jobs/Green New York" program (S.5844/A.8510).

    GRADE: A

    Passed the Senate, June 22, 2011; passed the Assembly, June 22, 2011;

    passed as part of Power NY. Expected to be signed into law

    by Gov. Andrew Cuomo.

    Passed as part of the Power NY legislative package, the On Bill Recovery Act

    establishes a lending system to fund residential and small business energy-efficien-

    cy retrofitting. In October 2009, the Green Jobs/Green New York on-bill recovery

    program was initiated to promote green jobs and energy efficiency. But for this

    program to be successful for the long term, additional funding provisions are

    needed to maximize customer participation. Upfront costs will be provided by a

    revolving loan fund comprised of a public/private partnership that uses RGGI funds

    to leverage private third-party investments. The retrofit loans are repaid through a

    charge on the customer's utility bill, but results in an overall net utility savings forthe customer. The program will make New York homes energy efficient and lower

    greenhouse gas emissions as well.

    GOAL:

    Pass provisions for Remote Net Metering (S.3407-A/A.6270-B).

    GRADE: A

    Passed Senate, May 9, 2011; passed Assembly, May 9, 2011.

    Signed into law by Gov. Andrew Cuomo, June 1, 2011.

    This bill amended the Public Service Law to offer remote net metering, which will

    offset the customer's total annual energy cost by facilitating the monitoring of

    renewable energy generation. Agricultural enterprises and non-residential energy

    customers generating electricity from multiple locations on their property will beprovided with net metering credit by gauging all such energy generation through a

    single meter. This will incentivize clean-energy production and develop alternative-

    energy jobs and technology throughout New York.

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    New York League of Conservation Voters Education Fund

    GOAL:Provide tax exemptions for the sale and installation of solar units

    (S.3203-A/A.5522-A).

    GRADE: C

    Stalled in Senate Finance Committee;

    stalled in Assembly Ways and Means Committee.

    This legislation amends the Tax Law to exempt the sale and installation of commer-cial solar units from various state sales taxes. Additionally, it grants municipalities

    the authority to create comparable exemptions from local sales taxes without addi-

    tional approval by the state Legislature. Providing these tax breaks for solar sales

    and installation promotes commercial involvement in clean energy by reducing the

    costs of large-scale solar projects, thereby fostering a more robust clean-energy

    sector in New York.

    GOAL:

    Expand municipal green energy procurement (S.661/A.3460).

    GRADE: C

    No significant progress. Stalled in Senate Local Government Committee;

    stalled in Assembly Local Governments Committee.

    This legislation amends the General Municipal Law to expand the purchasingpower of municipalities for renewable energy and recycled products for public use.

    Under state law, local governments are required to purchase energy and supplies

    from the cheapest possible source and in many instances that prohibits the pur-

    chase of sustainable products. This bill increases the maximum allowable cost pre-

    mium for renewable and recycled materials over those of their comparable, non-

    renewable counterparts. This legislation also allows municipalities to purchase

    sustainable goods even if less expensive, non-sustainable options are available.The failure of this legislation thereby hinders the development of markets for clean

    energy and sustainable goods.

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    2011 Legislative Progress Report

    GOAL:

    Pass the New York Solar Industry Development and Jobs Act

    (S.4178-A/A.5713-C).

    GRADE: C

    Stalled in Senate Finance Committee;stalled in Assembly Ways and Means Committee.

    The Solar Industry Development and Jobs Act provides New York with a competi-

    tive plan to foster the solar industry at all levels by leveraging the market to invest

    more robustly in the manufacture, production and installation of photovoltaic sys-

    tems. The legislation requires retail utility and electricity providers to procure

    increasing annual increments of New York-produced solar energy until 3 percent of

    the state's energy needs 5,000 megawatts is achieved through solar by the year2025. The bill would help return New York to the top of the national solar market,

    thereby making the state more energy independent, opening job opportunities and

    leading the clean-energy economy. Although this bill was not passed, the

    Legislature did acknowledge the critical need to address this issue when it commit-

    ted dedicated funds to researching the development of a state solar policy. A provi-

    sion in the Power NY package allocates funds to study the job creation and eco-

    nomic growth potential of solar energy development and its subsequent environ-mental benefits.

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    New York League of Conservation Voters Education Fund

    GOAL:

    Pass the Global Warming Pollution Control Act (S.2742-A/A.5346).

    GRADE: C

    Passed Assembly, May 2, 2011;

    stalled in Senate Environmental Conservation Committee.

    The Global Warming Pollution Control Act directs DEC to establish a statewidegreenhouse gas (GHG) emissions limit. The first cap, in 2013, limits annual GHG

    emissions at a baseline of 1990 levels. Thereafter, GHG emissions will be set at a

    percentage of that baseline, with a goal of a 20 percent reduction by 2020 and an

    additional 10 percent reduction every five years. The ultimate goal is to sustain an

    80 percent reduction below the 1990 baseline by 2050. The introduction of this bill

    and its bipartisan support demonstrate progress on the Legislature's part to

    recognize the threat of climate change. The achievable goals set forth in the GlobalWarming Pollution Control Act are necessary to protect the state's economy and the

    natural resources on which New York State businesses depend. In the long run, the

    status quo is a much more costly option than effective climate change policies.

    GOAL:

    Maintain the integrity of the Regional Greenhouse Gas Initiative (RGGI).GRADE: A

    In the FY2011 budget, RGGI proceeds were not diverted to the general fund.

    The proceeds from RGGI, a cap-and-trade pact created by 10 states to reduce

    greenhouse gases emitted by power plants, are intended for investment in

    renewable energy and energy-efficiency technologies. The RGGI program helps to

    reduce harmful pollutants, such as carbon dioxide, and its proceeds are used to

    leverage clean energy innovation, new technology development and related

    business and job creation. At the same time, RGGI proceeds help consumers lower

    their energy consumption and save on utility bills. That is why preventing the

    sweep of RGGI funds into the general fund this legislative session was a clear

    success for a cleaner New York.

    Climate Change & Air Quality Grade: B

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    2011 Legislative Progress Report

    GOAL:

    Ensure adequate funding for the Environmental Protection Fund.

    GRADE: B

    Despite across-the-board program cuts elsewhere, FY2011 Environmental

    Protection Fund appropriations were not reduced from FY2010 budget levels.

    The EPF is a critical funding source for habitat protection, parks, recreation and solid

    waste programs. In FY2010, the EPF was cut by 40 percent. With Gov. Cuomo's

    commitment to close the state's $10 million budget gap in 2011, many environmental

    advocates had feared further EPF funding reductions. Fortunately, the EPF was pre-

    served at FY2010 levels.

    GOAL:

    Pass legislation that provides for the uniform treatment of crude oil and gas

    drilling waste (S.4616/A.7013).

    GRADE: B

    Passed Assembly, June 16, 2011;

    stalled in Senate Environmental Conservation Committee.

    This legislation would amend the Environmental Conservation Law to authorize

    DEC to define all wastewater produced from gas drilling as hazardous waste. Such

    waste, therefore, would be subject to the same regulations for waste generation,

    transportation, treatment, storage and disposal that apply to hazardous waste

    generated by other industries. This would prevent the mishandling of contaminants

    such as those used in hydrofracking, and empower the state to better regulate

    substances that may be environmentally harmful and hazardous to public health.

    This measure is crucial for protecting New Yorkers from drilling waste generated in-state as well as any waste accepted from out of state, by creating the same rigorous

    standards for handling as hazardous waste generated from all other industries.

    Natural Resource Protection Grade: B

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    New York League of Conservation Voters Education Fund

    GOAL:Pass legislation to create a statewide water withdrawal permitting system

    (S.3798/A.5318-A).

    GRADE: A

    Passed Senate, June 16, 2011; passed Assembly, May 2, 2011.

    Expected to be signed into law by Gov. Andrew Cuomo.

    This law authorizes DEC to implement a comprehensive permitting system to

    regulate the state's water resources. It requires that any water withdrawal project

    with the capacity to withdraw 100,000 or more gallons per day be permitted by the

    DEC. Smaller public water supply projects would no longer need permits, allowing

    the DEC to focus on larger projects with greater impact. This legislation creates a

    system for the sustainable use of water resources and preserves ecosystems

    supported by the integrity of watersheds, while protecting the state from droughts

    caused by the depletion of surface and ground water. It will provide environmental

    protection while helping to preserve functions essential to economic and ecologicalactivity.

    GOAL:

    Explore new dedicated revenue sources for farmland protection.

    GRADE: B

    A two-house bill (S.5358/A.7659) was introduced that includes

    a provision to establish a new recurring revenue source for the

    Farmland Protection Program (FPP).

    The FPP was established to help New York farmers compete against increasing

    development pressures. However, the FPP is severely underfunded and has a $70

    million backlog of projects that have been approved for funding but never actually

    received it. Legislation introduced this year will set aside proceeds, generated bythe sale of wine in grocery stores, to the FPP.

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    2011 Legislative Progress Report

    GOAL:Prevent the passage of the saltwater fishing license repealer bill

    (S.3638/A.6169).

    GRADE: B

    Stalled in Senate Finance Committee; stalled in Assembly Environmental

    Conservation Committee.

    This bill would replace New York's current recreational marine fishing license with a

    non-fee registration program. The fee collects nearly $1 million annually and funds

    staff in the DEC's Marine Bureau. This legislation would necessitate that these funds

    be found elsewhere, and in lieu of recent reductions to DEC's budget and staff,

    would surely result in the elimination of these positions and the Marine Bureau's

    ability to carry out basic functions necessary to protect valuable marine resources.

    Transportation Grade: B

    GOAL:

    Ensure MTA dedicated funds are used for their intended purposes

    and not swept to the general fund.

    GRADE: D

    In FY 2011, $100 million in dedicated MTA funding

    were diverted into the general fund.

    For the second year in a row, the MTA has been stripped of funds dedicated to

    mass transit. A well-funded mass transit system is essential to maintaining a strong

    regional economy and workforce, and connects New Yorkers to essential services.Siphoning monies intended for the MTA will exacerbate service cuts and rate hikes,

    and make it increasingly difficult to provide reliable mass transit for New Yorkers.

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    New York League of Conservation Voters Education Fund

    GOAL:Pass the Transit Funding Lockbox Act (S.4257-C/A.6766-C).

    GRADE: A

    Passed Senate, June 22, 2011; passed Assembly, June 24, 2011.

    Unclear if Gov. Andrew Cuomo will sign into law.

    The Transit Funding Lockbox Act aims to prevent public transit fare hikes and

    service cuts by impeding the diversion of dedicated public transit funds. Inresponse to repeated budget sweeps of transportation funds, the Legislature

    acknowledged the urgency of this issue by unanimously passing this bill in the last

    days of this legislative session. Over the last three years, the state government

    raided a total of $260 million from dedicated MTA funding. This bill will stem the

    tide of MTA defunding by requiring the Legislature to write a "diversion impact

    statement" whenever transit funds would be used for other purposes. It also

    emphasizes transparency and accountability in budget decisions that affect transit

    funds.

    GOAL:

    Prevent the passage of the payroll mobility tax repealer

    (S.5596-A/A.8193-A).

    GRADE: CPassed the Senate, June 15, 2011;

    stalled in Assembly Ways and Means Committee.

    This bill amends the commuter mobility transportation tax that was instated in

    2009. If passed, it would have gradually phased out critical funding that supports

    MTA operations throughout its entire service area including Long Island, New York

    City, Westchester County and the Hudson Valley. This bill also proposed using

    carbon auction proceeds from the RGGI program to substitute for dollars thatwould have been lost by the repeal of this tax. The passage of this bill would have

    had significant negative consequences for mass transit service, air quality and the

    economy of the entire state.

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    2011 Legislative Progress Report

    GOAL:

    Pass the Complete Streets bill (S.5411-A/A.8366).

    GRADE: A

    Passed Senate, June 20, 2011; passed Assembly, June 20, 2011.

    Expected to be signed by Gov. Andrew Cuomo.

    The Complete Streets legislation amends the Highway Law by requiring publicroads to accommodate all users, including cyclists, pedestrians, transit riders,

    motorists and people of all ages and ability. This legislation addresses public safety

    issues by recognizing bicycle, pedestrian and other transit modes as integral to the

    transportation system and places the needs of all users on equal footing during

    roadway planning, design and construction. The Legislature recognized the need

    for increased protections for pedestrians and a much-needed reduction in pedestri-

    an and traffic-related fatalities in New York when it passed this law. Additionally,the incorporation of Complete Streets planning into transportation and roadway

    design will benefit local economies by making areas safe and accessible to the

    entire population. Greater accessibility through multiple modes of low- to zero-

    emissions transportation will, in turn, result in an overall emissions reduction from

    transportation statewide.

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    NEW YORK LEAGUEOF CONSERVATION VOTERS

    EDUCATION

    www.nylcvef.org

    2011 New York League of Conservation Voters Education