senate Bill S4426A

Directs the New York state power authority to issue RFPs on certain gas turbine generators installed in and around the New York metropolitan area

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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

  • 27 / Mar / 2013
    • REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS
  • 06 / May / 2013
    • 1ST REPORT CAL.544
  • 07 / May / 2013
    • 2ND REPORT CAL.
  • 08 / May / 2013
    • ADVANCED TO THIRD READING
  • 21 / Jun / 2013
    • COMMITTED TO RULES
  • 08 / Jan / 2014
    • REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS
  • 10 / Mar / 2014
    • 1ST REPORT CAL.247
  • 11 / Mar / 2014
    • 2ND REPORT CAL.
  • 12 / Mar / 2014
    • ADVANCED TO THIRD READING
  • 09 / Jun / 2014
    • AMENDED ON THIRD READING 4426A
  • 20 / Jun / 2014
    • COMMITTED TO RULES

Summary

Directs the New York state power authority to issue requests for proposals on certain gas turbine generators installed in and around the New York metropolitan area.

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Bill Details

See Assembly Version of this Bill:
A10047
Versions:
S4426
S4426A
Legislative Cycle:
2013-2014
Current Committee:
Senate Rules
Law Section:
Public Authorities
Versions Introduced in Previous Legislative Cycles:
2011-2012: S5406A, S5406A
2009-2010: S7208, S7208

Sponsor Memo

BILL NUMBER:S4426A

TITLE OF BILL: An act directing the power authority of the state of New
York to release requests for proposals on certain natural gas powered
generating facilities in and around New York city

PURPOSE:

To raise revenue for the Power Authority of the State of New York
through the sale of numerous "peaker" generators in and around New York
City and to provide resources for alternative energy generation projects
within the City.

SUMMARY OF PROVISIONS:

Section one of the bill requires the New York Power Authority ("NYPA")
to issue a request for proposals ("RFP") for the purchase of 10 speci-
fied gas turbine electric generating facilities within 90 days of the
effective date. NYPA is required to issue requests to determine the
likely value of the sale of the generators and to submit a report to the
Governor, the Temporary President of the Senate, and the Speaker of the
Assembly regarding the range of bids received. NYPA will be authorized
to sell one or more of the 10 specified gas turbine electric generating
facilities if NYPA and its Trustees find that it the sale or sales are
in the best interest of NYPA and the citizens of New York. The revenue
collected from any sale or sales shall be placed in an account dedicated
to reducing the cost of electricity for Private primary and secondary
school in NYS. The Authority shall create and implement programs to
promote energy efficiency, install renewable energy/Green technologies,
and aggregate energy purchases for such schools.

Section two provides that in order to measure the effectives of the
programs created pursuant to this act, NYPA shall issue a yearly report
commencing July 1st, 2015. The report shall contain information on each
program created, monetary savings realized by such private primary and
secondary schools, as well as the amount of funds remaining in the dedi-
cated account. A copy of the report shall be transmitted to the tempo-
rary President of the Senate, Speaker of the Assembly, Chair of the
Senate Committee on Energy and Telecommunications, the Chair of the
Assembly Energy Committee and be published on NYPA's website.

Section three of the bill provides that this act shall take effect imme-
diately.

JUSTIFICATION:

New York City faces considerable obstacles in moving toward a greater
reliance on alternative energy sources. It is the interest of the citi-
zens of New York City and of the entire state to support new alternative
energy generating projects through the transfer of publicly owned and
operated traditional power entities within the five boroughs to private
entities committed to service and technology upgrades.

Revenues generated from the sale or transfer of the specified gas
turbine electric generating facilities are to be used to encourage, the
goals of PIaNYC for a cleaner and more reliable energy future.

An ideal candidate for such an endeavor is the New York Power Authority
("NYPA"). NYPA should issue a Request for Proposals ("RFP") to sell its
small, natural gas-powered facilities in an around New York City, there-
by providing independent power producers with the opportunity to help
trim the budget shortfall while, as the same time, applying their exper-
tise to the operation of those facilities. If an RFP for those generat-
ing facilities was issued, it is possible for NYPA to bring in signif-
icant revenue to apply to the city's and state's future energy
requirements. Such transactions should also benefit the city and state
for years to come through the increased tax revenues that should be
realized on an ongoing basis.

In the Summer of 2001, NYPA began operating ten natural gas-powered
generating facilities at six sites in New York city, thereby adding
approximately 450 megawatts of energy to NYPA's portfolio. These facili-
ties were intended to be used as "peaker" plants, needed only in times
of extremely high demand or in case of emergency. The existence and use
of these units by a public entity has been controversial since the
onset, and moving these traditional petrochemical powered units to the
private sector would allow NYPA the opportunity to help move the city
into a brighter and cleaner future through the support of alternative
energy projects such as solar arrays, wind and tidal generation in part-
nership with independent private generators.

It would not be the first time that NYPA sold some of its property to
the private sector, and it is likely that interested investors would be
attracted to NYPA's small generation facilities as well. While it is
impossible to predict potential offers, it should be noted that, in
2008, TransCanada corporation purchased the Ravenswood Generating Facil-
ity in Queens from National Grid for $2.8 billion, a price that exceeded
expectations and demonstrates the level of attention that the private
sector takes in worthwhile assets.

PRIOR LEGISLATIVE HISTORY:

2011-12: S.5406-A - Referred to Corporations, Authorities and Commis-
sions
2010: S.7208 - Referred to Corporations, Authorities and Commissions'

FISCAL IMPLICATIONS:

The RFP will provide an accurate value, but recent estimates put the
value at a minimum of $200 million apiece.

EFFECTIVE DATE:

This act shall take effect immediately.

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

                                 4426--A
    Cal. No. 247

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                             March 27, 2013
                               ___________

Introduced  by  Sen.  GOLDEN -- read twice and ordered printed, and when
  printed to be committed to the Committee on Corporations,  Authorities
  and  Commissions  --  recommitted  to  the  Committee on Corporations,
  Authorities and Commissions in accordance with Senate Rule 6,  sec.  8
  -- reported favorably from said committee, ordered to first and second
  report,  ordered  to  a  third reading, amended and ordered reprinted,
  retaining its place in the order of third reading

AN ACT directing the power authority of the state of New York to release
  requests for proposals  on  certain  natural  gas  powered  generating
  facilities in and around New York city

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

  Section 1. (a) The power authority of the state of New York ("authori-
ty") shall within 90 days of the effective date of  this  act,  issue  a
request  for the proposals to purchase from the authority one or more of
the ten gas turbine electric  generating  facilities  with  a  nameplate
capacity  of  less  than 80 megawatts each, owned by the authority as of
the effective date of this act and located in and around the city of New
York. Such request for proposals to sell such generators  shall  be  put
out  for  bid  for  a maximum of 90 days and shall include the following
sites and generating facilities:
  (1) Two units at Harlem river yard plant, located in the Harlem  River
Yards, at E. 132nd street, Bronx, New York 10454;
  (2)  Two  units  at  Vernon  Boulevard, located at 41-98, 42-02, 42-16
Vernon boulevard, Long Island City, Queens, New York 11101;
  (3) Two units at the Hell Gate plant, located  at  Locust  Avenue,  E.
132nd street to E. 134th street, Bronx, New York 10454;
  (4)  Two  units  at  the  Windsor  Terrace power plant, located at 3rd
avenue and 23rd street, Brooklyn, New York 11232;
  (5) One unit at Pouch terminal; located at 1 Edgewater street,  Staten
Island, New York 10305; and

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10081-03-4

S. 4426--A                          2

  (6)  One unit at North First avenue and River street, located at 47-79
River street, Brooklyn, New York 11211.
  (b)  The authority shall issue such requests to determine, among other
things the likely value to New York state for the sale of  such  genera-
tors. The authority shall, within 30 days of the end of the solicitation
period,  report  on  the  range  of  solicited bids to the governor, the
temporary president of the senate  and  the  speaker  of  the  assembly,
subject  to  all appropriate and applicable confidentiality requirements
with respect to individual bids and information contained therein.
  (c) The authority, as its trustees deem feasible and in  the  interest
of  the  authority  and  the citizens of the state of New York, shall be
authorized to permit the sale of one or more  of  the  turbine  electric
facilities listed in subdivision (a) of this section. Revenues collected
from  such  sale  or sales shall be placed in a dedicated account in the
custody of the authority  and  used  to  reduce  electricity  costs  for
private  primary  and  secondary  schools  in the state of New York. The
authority shall, as deemed  feasible  and  advisable  by  the  trustees,
create  and implement programs to promote energy efficiency, the instal-
lation of renewable or clean energy technologies, and to aggregate ener-
gy purchases for such private  primary  and  secondary  schools.  As  it
relates  to  renewable  or clean energy projects only those technologies
eligible for net metering under section  66-j  or  66-l  of  the  public
service law shall qualify.
  S  2.  In  order  to measure the effectiveness of the programs created
pursuant to this act, the authority shall issue  a  report  on  July  1,
2015,  and  every  other  year from that date forward. Such report shall
contain information on each program created and shall measure energy and
monetary savings achieved by each private primary or  secondary  school,
as  well  as  full  accounting  of  the funds remaining in the dedicated
account. A copy of the report shall be provided to the temporary  presi-
dent of the senate, the speaker of the assembly, the chair of the senate
energy and telecommunications committee, the chair of the assembly ener-
gy committee and also published on the authority's website.
  S 3. This act shall take effect immediately.

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