senate Bill S1056B

Relates to the power authority of the state of New York and the public authorities control board

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 05 / Jan / 2011
    • REFERRED TO ENERGY AND TELECOMMUNICATIONS
  • 22 / Feb / 2011
    • AMEND (T) AND RECOMMIT TO ENERGY AND TELECOMMUNICATIONS
  • 22 / Feb / 2011
    • PRINT NUMBER 1056A
  • 04 / Jan / 2012
    • REFERRED TO ENERGY AND TELECOMMUNICATIONS
  • 05 / Jan / 2012
    • AMEND AND RECOMMIT TO ENERGY AND TELECOMMUNICATIONS
  • 05 / Jan / 2012
    • PRINT NUMBER 1056B

Summary

Relates to the power authority of the state of New York and the public authorities control board; prohibits the power authority from undertaking any project or sale of any asset exceeding one million dollars without the approval from the public authorities control board; provides for factors for such determination; creates a temporary special commission on the restructuring of the power authority of the state of New York; directs the New York state energy research and development authority to conduct studies related to the state's electric transmission system, the state's natural gas infrastructure and a comprehensive energy plan for the down state region of the state.

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Bill Details

Versions:
S1056
S1056A
S1056B
Legislative Cycle:
2011-2012
Current Committee:
Senate Energy And Telecommunications
Law Section:
Public Authorities Law
Laws Affected:
Amd §§51 & 1005, add §1855-a, Pub Auth L
Versions Introduced in 2009-2010 Legislative Cycle:
S1781

Sponsor Memo

BILL NUMBER:S1056B

TITLE OF BILL:
An act
to amend the public authorities law, in relation to the power authority
of the state of New York and the public authorities control board,
and
in relation to directing the New York state energy research and
development authority to conduct a study
related to the state's natural gas infrastructure

PURPOSE OR GENERAL IDEA OF BILL:
To make the Power Authority of the state of New York (PASNY) subject
to oversight by the public Authorities Control Board. And to
establish a commission to study the future role of PASNY in a
deregulated electric industry. The bill also directs the New York
state energy research and development authority to conduct studies
related to the state's electric transmission system, the state's
natural gas infrastructure and a comprehensive energy plan for the
downstate region of the state.

SUMMARY OF SPECIFIC PROVISIONS:
This bill amends section 51 and 1005 of the public authorities law and
adds three new sections 1855-a.

JUSTIFICATION:
The electricity industry has undergone tremendous changes and
currently exposes utility customers to greatly increased risks
associated with price volatility without significant corresponding
benefits. PASNY was directed to build 11 single cycle generators in
and around the Metropolitan New York City region. There was very
limited public process involved in siting these turbines, many of
which were sited in low-income neighborhoods.

Placing PASNY under the public Authorities Control Board provides
oversight and establishing a commission to study the future role of
PASNY will help refocus PASNY's mission in a deregulated electricity
marketplace. It is necessary to examine the problems surrounding the
state's energy infrastructure, including transmission, and natural
gas transportation, distribution and indigenous resources.

It is also necessary to study downstate, as it has experienced the
greatest price spikes due to load pockets and market forces, which
has also affected the State's overall whole electricity market.

PRIOR LEGISLATIVE HISTORY:

2009-10: S.1781 Referred to Energy and Telecommunications
2007-08: S.1985 Referred to Energy and Telecommunications
2006-07: S.1350 Referred to Energy and Telecommunications

FISCAL IMPLICATIONS:
To be determined.

EFFECTIVE DATE:
Immediately.


view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 1056--B

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 5, 2011
                               ___________

Introduced  by  Sens.  PARKER,  DIAZ,  DUANE, HASSELL-THOMPSON, KRUEGER,
  PERKINS, SAMPSON, SERRANO, STAVISKY -- read twice and ordered printed,
  and when printed to be committed to the Committee on Energy and  Tele-
  communications   --   committee   discharged,  bill  amended,  ordered
  reprinted as amended and recommitted to said committee --  recommitted
  to  the  Committee on Energy and Telecommunications in accordance with
  Senate Rule 6, sec. 8 -- committee discharged, bill  amended,  ordered
  reprinted as amended and recommitted to said committee

AN  ACT  to  amend  the public authorities law, in relation to the power
  authority of the state of New York and the public authorities  control
  board, and in relation to directing the New York state energy research
  and  development  authority  to conduct a study related to the state's
  natural gas infrastructure

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Subdivision 1 of section 51 of the public authorities law
is amended by adding a new paragraph o to read as follows:
  O. POWER AUTHORITY OF THE STATE OF NEW YORK
  S 2. Section 1005 of the public authorities law is amended by adding a
new subdivision 11-a to read as follows:
  11-A. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY,  THE
AUTHORITY SHALL NOT UNDERTAKE ANY PROJECT OR SALE OF ANY ASSET EXCEEDING
ONE MILLION DOLLARS IN VALUE WITHOUT THE APPROVAL OF THE PUBLIC AUTHORI-
TIES  CONTROL  BOARD  CREATED PURSUANT TO ARTICLE ONE-A OF THIS CHAPTER.
EACH APPLICATION TO THE PUBLIC AUTHORITIES CONTROL BOARD SHALL CONTAIN A
PROJECT DESCRIPTION OR DESCRIPTION OF SALE AND AN EXPLANATION OF WHY THE
PROJECT OR SALE MEETS THE STANDARDS FOR PROJECT APPROVAL OR APPROVAL  OF
SALE SET FORTH IN THIS SUBDIVISION. THE PUBLIC AUTHORITIES CONTROL BOARD
SHALL  ONLY APPROVE A PROJECT OR SALE PROPOSED BY THE AUTHORITY UPON ITS
DETERMINATION THAT:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02114-03-2

S. 1056--B                          2

  A. THE PROJECT OR SALE IS FINANCIALLY  FEASIBLE  AS  THE  STANDARD  AS
DEFINED IN ARTICLE ONE-A OF THIS CHAPTER;
  B.  THE  PROJECT  OR  SALE IS ANTICIPATED TO RESULT GENERALLY IN LOWER
UTILITY RATES IN THE STATE; AND
  C. THE PROJECT OR SALE WILL NOT MATERIALLY  ADVERSELY  AFFECT  OVERALL
REAL  PROPERTY  TAXES  OR UTILITY RATES IN ANY AREAS OF THE STATE OF NEW
YORK.
  S 3. Temporary special commission on restructuring the power authority
of the state of New York. 1. There shall be a temporary special  commis-
sion  on  restructuring  the  power  authority of the state of New York,
which shall possess the powers and duties as specified in this  section,
and  also  all  powers  necessary or proper to enable such commission to
carry out the purposes  for  which  it  is  established.  The  temporary
special  commission  shall  consist of eight members as follows:  two of
whom shall be appointed by the governor, two of whom shall be  appointed
by the temporary president of the senate, two of whom shall be appointed
by  the  speaker  of the assembly, one of whom shall be appointed by the
minority leader of the senate and one of whom shall be appointed by  the
minority leader of the assembly. Each member shall serve at the pleasure
of  the  respective appointing person.   One of the members appointed by
the governor shall be selected by the governor to serve as chair of  the
temporary  special commission. The temporary special commission shall be
subject to articles 6 and 7 of the public officers law.  Each member  of
the  temporary  special commission shall be subject to the provisions of
article 4 of the public officers law.
  2. The temporary special commission on restructuring the power author-
ity of the state of New York shall have the power and duty to:
  (a) conduct hearings, discussions, and negotiations among  members  of
the public, affected businesses, and representatives of government; and
  (b)  issue  a  final  report to the governor and legislature detailing
recommendations on restructuring the power authority of the state of New
York, including, but not limited to, the following issues: the  divesti-
ture  of  such  authority's  non-hydroelectric  generation  assets; such
authority's role as a transmission provider; such  authority's  role  in
the power for jobs and economic development power programs; such author-
ity's  energy  efficiency  programs; such authority's relationship with,
and obligation to, host communities,  including,  but  not  limited  to,
payments-in-lieu  of taxes to local municipalities and school districts,
economic development investments, and  community  revitalization  initi-
atives;  and such authority's role in a deregulated energy market. On or
before September 1, 2013 such commission shall transmit such  report  to
the  governor,  the  speaker of the assembly, the minority leader of the
assembly, the temporary president of the senate, the minority leader  of
the senate, the chairman of the assembly energy committee and the chair-
man of the senate energy and telecommunications committee.
  S  4.  The  public  authorities law is amended by adding a new section
1855-a to read as follows:
  S 1855-A. NATURAL GAS SUPPLY AND INFRASTRUCTURE STUDY. 1. THE AUTHORI-
TY SHALL UNDERTAKE A STUDY OF ISSUES, INCLUDING BUT NOT LIMITED  TO  THE
SUPPLY,  TRANSPORTATION,  PIPELINE CAPACITY, DISTRIBUTION AND STORAGE OF
NATURAL GAS IN NEW YORK STATE. THE AUTHORITY MAY CONTRACT WITH AN  INDE-
PENDENT  AND  COMPETITIVELY SELECTED CONTRACTOR TO UNDERTAKE SUCH STUDY.
THE AUTHORITY SHALL PREPARE A REPORT ON  ITS  FINDINGS  AND  LEGISLATIVE
RECOMMENDATIONS.  ON  OR  BEFORE SEPTEMBER FIRST, TWO THOUSAND THIRTEEN,
THE AUTHORITY SHALL TRANSMIT SUCH REPORT TO THE GOVERNOR, THE  TEMPORARY
PRESIDENT  OF  THE  SENATE, THE SPEAKER OF THE ASSEMBLY, THE CHAIRMAN OF

S. 1056--B                          3

THE SENATE ENERGY AND TELECOMMUNICATIONS COMMITTEE AND THE  CHAIRMAN  OF
THE ASSEMBLY ENERGY COMMITTEE.
  2. THE STUDY SHALL INCLUDE, AT A MINIMUM, AN ASSESSMENT OF EACH OF THE
FOLLOWING:
  (A)  CURRENT  UTILITY  PRACTICES IN PROCURING THE COMMODITY OF NATURAL
GAS AND A COMPARISON, BY UTILITY TERRITORY IN THE STATE, OF  IMPACTS  ON
RATES  FOR  END-USE CUSTOMERS; (B) THE CURRENT AND PROJECTED ADEQUACY OF
THE  NATURAL  GAS  INFRASTRUCTURE,  INCLUDING  TRANSPORTATION,  PIPELINE
CAPACITY,  DISTRIBUTION  AND  STORAGE IN NEW YORK STATE; (C) ADEQUACY OF
TRANSPORTATION AND DISTRIBUTION IN DENSELY POPULATED AREAS OF THE  STATE
AND  IN  RURAL  AREAS  OF  THE  STATE; (D) INVESTMENT IN INFRASTRUCTURE,
INCLUDING CAPITAL IMPROVEMENTS, UTILIZATION OF  NEW  TECHNOLOGY,  EXPAN-
SIONS,  AND MAINTENANCE; (E) THE ADEQUACY OF TRANSPORTATION AND DISTRIB-
UTION INFRASTRUCTURE IN AREAS WHERE NATURAL GAS FUELED ELECTRIC GENERAT-
ING PLANTS ARE PROPOSED; (F) INDIGENOUS SOURCES OF NATURAL  GAS  IN  THE
STATE;  (G)  WORKFORCE  ADEQUACY,  INCLUDING THE AVAILABILITY OF SKILLED
LABORERS  AND  THE  ADEQUACY  OF  SKILLS  TRAINING  AND   APPRENTICESHIP
PROGRAMS;  AND  (H)  THE  POTENTIAL IMPACT OF DISTRIBUTED GENERATION AND
COMBINED HEAT AND  POWER  SYSTEMS  ON  NATURAL  GAS  TRANSPORTATION  AND
DISTRIBUTION SYSTEM ADEQUACY.
  S 5. This act shall take effect immediately.

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