NY S09228

Creates an economy-wide cap and invest program managed by the Department of Environmental Conservation and New York State Energy Research and Development Authority, with the first compliance period beginning June 1, 2024.

Establishes annually declining aggregate greenhouse gas emissions limits for all covered sources and requires covered entities to submit allowances equal to their emissions or face penalties up to $12,500 per day.

Allocates allowances through quarterly auctions with minimum and maximum price floors set by the department, with provisions for reduced-cost allowances to energy-intensive and trade-exposed facilities (EITEs) for up to ten compliance periods, capped at 15 percent of total allowances.

Prioritizes emissions reductions in disadvantaged communities by establishing lower individual source emissions caps in and within five miles of such communities to ensure they experience pollution reduction rates exceeding other areas.

Establishes an Office of Equity for Energy and Climate within NYSERDA to administer a Community Directed Climate Solutions Fund and grants program, with at least 75 percent of funding directed to projects in disadvantaged communities.