Bill > S01528

This bill establishes a comprehensive carbon dioxide emissions tax in New York State to mitigate greenhouse gas emissions and address climate change. The legislation defines carbon-based fuels broadly to include coal, natural gas, petroleum products, and other carbon-emitting substances used in fuel, heating, cooling, or industrial processes. The tax will start at $35 per ton of carbon dioxide equivalency and increase annually by $15, up to a maximum of $185 per ton. Fuel distributors and utilities will be required to pay this tax based on their carbon-based fuel sales or electricity generation. The bill creates a Carbon Dioxide Emissions Fund, which will allocate 60% of the collected proceeds as tax credits to low and moderate-income residents to offset the potentially regressive nature of the tax, and the remaining 40% will be distributed to support clean energy transition, mass transit improvements, climate change adaptation, and related environmental initiatives. The Department of Environmental Conservation will administer the tax, with provisions for regular reporting to the legislature and flexibility to adjust the tax rate to ensure progress towards emissions reduction goals. The tax will not apply to carbon-based fuels if superseded by federal law, and the implementation is designed to be gradual and adaptable to changing environmental and economic conditions.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/S1528