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CO2 Budget Trading Program and CO2 Allowance Auction Program - Proposed Amendments 2013

The New York State Department of Environmental Conservation (DEC) proposes to amend the regulations that implement the Regional Greenhouse Gas Initiative (RGGI), "CO2 Budget Trading Program" (Program) Part 242 of Title 6 of the Official Compilation of Codes, Rules and Regulations of the State of New York (NYCRR) and "General Provisions" 6 NYCRR Part 200; and the New York State Energy Research and Development Authority (NYSERDA) proposes to amend the "CO2 Allowance Auction Program" 21 NYCRR Part 507. The principal purpose of these amendments is to implement a reduction in the carbon dioxide (CO2) emission cap and to strengthen the flexibility provisions of this market-based cap and trade program.

DEC, in consultation with NYSERDA, determined DEC should serve as lead agency for the environmental review of this action. Based on an initial review of the action, DEC believes that the proposed rulemaking is likely to have a positive impact on the environment and is unlikely to have any significant adverse environmental impacts. Notwithstanding this, DEC has chosen to prepare an SGEIS to discuss the objectives and rationale for the proposed amendments and to provide maximum opportunity for public participation in the rulemaking process.

Since DEC believes that the proposed amendments will result in positive impacts to the environment, the SGEIS will address the single potential issue of "emissions leakage." Emissions leakage refers to the potential for the Program to cause a shift of electricity generation from capped sources subject to the Program to higher-emitting sources not subject to the Program, in and out of the RGGI region. The SGEIS will analyze the potential shift in generation to sources not covered by the cap and whether this could result in a potential increase of greenhouse gas emissions that could offset reductions from the Program. In addition, the SGEIS will consider the potential for increases in other pollutants, such as oxides of nitrogen, sulfur dioxide and mercury that could have an adverse impact on the environment.


Positive Declaration (PDF 34kb, 2pgs)
Draft Scoping document (PDF 46kb, 6pgs)
Final GEIS through Appendix E (PDF 1.35MB, 327pgs)
Final GEIS Appendix F through Appendix I (PDF 1.84MB, 917pgs)
ENB Notice


In an effort to provide early public review of the proposed amendments, DEC is conducting a public scoping of issues to be addressed in the draft SGEIS. A draft scope has been prepared to facilitate this discussion. A copy of the draft scope is posted and you may view it by clicking the above link.

Comments and additional information

All written comments and request for additional information may be addressed to:

Michael P. Sheehan, P.E.
NYSDEC Division of Air Resources
625 Broadway
Albany NY 12233-3251
(518) 402-8396
E-mail: 242co2btp@gw.dec.state.ny.us

Comments Received on the Draft Scoping Document

Upstate New York Power Producers (PDF) (130 kb, 2 pgs)
The Business Council (PDF) (164 kb, 3 pgs)
Independent Power Producers of New York, Inc. (PDF) (623 kb, 3 pgs)
Environmental Energy Alliance of New York (PDF) (434 kb, 3 pgs)

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