NY S04651

Establishes an economy-wide cap and invest program beginning June 1, 2026, with annually declining limits on total greenhouse gas emissions from all covered sources to meet state climate targets

Requires the Department of Environmental Conservation to create and auction emissions allowances, with a price floor and ceiling schedule, and prohibits allowances from being traded, sold, or transferred between entities

Mandates site-specific emissions caps for facilities in disadvantaged communities and within a five-mile radius, prioritizing pollution reductions in these areas over other communities

Allows energy-intensive and trade-exposed facilities (EITEs) to receive reduced-cost allowances for up to 10 compliance periods if they demonstrate potential for emissions leakage and use best available technology, capped at 15% of total allowances

Imposes penalties of up to $12,500 per day for violations, with all revenue deposited into the New York Climate Action Fund for climate mitigation, adaptation, and workforce development programs