senate Bill S5536A

Amended

Relates to the expansion of natural gas service in this state

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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

  • 16 / May / 2013
    • REFERRED TO ENERGY AND TELECOMMUNICATIONS
  • 23 / May / 2013
    • AMEND (T) AND RECOMMIT TO ENERGY AND TELECOMMUNICATIONS
  • 23 / May / 2013
    • PRINT NUMBER 5536A
  • 04 / Jun / 2013
    • REPORTED AND COMMITTED TO RULES
  • 04 / Jun / 2013
    • ORDERED TO THIRD READING CAL.1037
  • 10 / Jun / 2013
    • PASSED SENATE
  • 10 / Jun / 2013
    • DELIVERED TO ASSEMBLY
  • 10 / Jun / 2013
    • REFERRED TO ENERGY
  • 08 / Jan / 2014
    • DIED IN ASSEMBLY
  • 08 / Jan / 2014
    • RETURNED TO SENATE
  • 08 / Jan / 2014
    • REFERRED TO ENERGY AND TELECOMMUNICATIONS
  • 09 / Jan / 2014
    • AMEND AND RECOMMIT TO ENERGY AND TELECOMMUNICATIONS
  • 09 / Jan / 2014
    • PRINT NUMBER 5536B
  • 14 / Jan / 2014
    • AMEND AND RECOMMIT TO ENERGY AND TELECOMMUNICATIONS
  • 14 / Jan / 2014
    • PRINT NUMBER 5536C
  • 10 / Feb / 2014
    • REPORTED AND COMMITTED TO FINANCE
  • 02 / Jun / 2014
    • 1ST REPORT CAL.1077
  • 03 / Jun / 2014
    • 2ND REPORT CAL.
  • 09 / Jun / 2014
    • ADVANCED TO THIRD READING
  • 20 / Jun / 2014
    • COMMITTED TO RULES

Summary

Enacts provisions to provide for and assist in the expansion of natural gas service in this state for environmental and economic benefit.

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Bill Details

See Assembly Version of this Bill:
A7900
Versions:
S5536
S5536A
S5536B
S5536C
Legislative Cycle:
2013-2014
Current Committee:
Senate Rules
Law Section:
Public Service Law
Laws Affected:
Add §§27 & 18-d, Pub Serv L; add §143, Pub Bldg L; add §§485-r & 485-q, RPT L; amd §§1001 & 1010, add §1005-b, Pub Auth L

Sponsor Memo

BILL NUMBER:S5536A

TITLE OF BILL: An act to amend the public service law, the public
buildings law, the real property tax law and the public authorities
law, in relation to expansion of natural gas service

PURPOSE OR GENERAL IDEA OF BILL: To provide incentives aimed at
encouraging the extension of existing gas lines to unserved and
underserved areas.

SUMMARY OF SPECIFIC PROVISIONS: Section 1. Legislative intent.

Section 2. This section requires the PSC to facilitate contacts with
state agencies and local governments with respect to review of permit
applications on expansion of natural gas lines.

Section 3. This section requires that 250 of the revenue generated by
the SBC surcharge to be allocated for the purpose of natural gas line
extensions.

Section 4. This section mandates that OGS undertake a study on
conversion to natural gas heating when a public building is subject to
a capital project which requires installation or replacement of a
boiler for heating. The study must also consider benefits to the
community from an extension of pipeline.

Section 5. This section provides a real property tax exemption at
local option to the extent of the increase in the assessed value
attributable to the construction of natural gas distribution
facilities. The length and percentage of the exemption is determined
by local law or resolution.

Section 6. This section creates a real property tax exemption in New
York City at local option for the construction of natural gas
facilities.

Sections 7, 8 and 9 amend the public authorities law with regard to
the New York Power Authority.

Section 10 is the effective date.

JUSTIFICATION: There are currently 555,000 households that lie within
100 feet of an existing gas distribution line, and 580,000 homes that
exist beyond a 100 feet of a line but within an existing natural gas
utility franchise. Many small businesses and other commercial
operations are in similar circumstances.

Natural gas prices are at an all time low, and access to natural gas
can save customers significant amounts annually. In addition, the
environmental benefits of natural gas are well documented, including
significant reductions in sulfur dioxide, nitrogen dioxide,
particulate matter and carbon dioxide.

Natural gas access is a strong tool for job creation, since the
reduced costs inherent to using gas to heat a building are a strong
incentive for a business to locate in an area that has that service.


This bill provides new incentives to facilitate extension of natural
gas lines to spur economic development, create jobs, and lower costs.
This policy is good for consumers, good for business and good for the
environment.

LEGISLATIVE HISTORY: This is a new bill

FISCAL IMPLICATIONS: To be determined

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
________________________________________________________________________

                                 5536--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              May 16, 2013
                               ___________

Introduced  by  Sen. MAZIARZ -- read twice and ordered printed, and when
  printed to be committed to the Committee on  Energy  and  Telecommuni-
  cations  --  committee  discharged, bill amended, ordered reprinted as
  amended and recommitted to said committee

AN ACT to amend the public service law, the public  buildings  law,  the
  real  property  tax law and the public authorities law, in relation to
  expansion of natural gas service

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

  Section  1.  Legislative intent. The legislature hereby finds that the
extension of natural gas lines within the state has multiple benefits to
New Yorkers, including a  reduction  in  pollution  with  the  resultant
health  benefits,  increased economic activity with the creation of jobs
through improved energy infrastructure, energy cost savings  to  consum-
ers, and improved energy efficiency.
  Natural  gas  is  the  cleanest burning fossil fuel. It has a positive
impact on the environment by cutting emissions  of  particulate  matter.
These  emissions  have  been  linked  to  heart  and lung conditions and
contribute to asthma rates, particularly in urban areas.
  Natural gas prices are at a low point and  will  result  in  increased
disposable  income for consumers and improved operational efficiency for
business. Extending the state's natural  gas  line  infrastructure  will
create a positive business environment for manufacturers and other busi-
nesses  that  are  looking  to stabilize their energy costs. Natural gas
line extensions will spur economic development in  the  business  sector
and create jobs.
  This  legislation  will  have  the  effect  of  protecting the state's
natural resources, including protecting its atmosphere  from  pollution,
while  at  the same time stimulating the development of new jobs and the
economy.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11148-03-3

S. 5536--A                          2

  S 2. The public service law is amended by adding a new section  27  to
read as follows:
  S  27.  EXPANSION PERMIT APPLICATIONS. ANY GAS CORPORATION OR COMBINA-
TION GAS AND ELECTRIC CORPORATION APPLYING  FOR  PERMITS  IN  CONNECTION
WITH  THE  EXPANSION  OF  NATURAL  GAS  SERVICE THROUGH THE EXTENSION OF
EXISTING GAS LINES MAY CONFER WITH THE COMMISSION TO  OBTAIN  ASSISTANCE
IN  FACILITATING  CONTACTS WITH STATE AGENCIES AND LOCAL GOVERNMENTS FOR
PROCESSING AND REVIEWING PERMIT APPLICATIONS TO ACHIEVE THE  PROMPT  AND
EFFICIENT  PROCESSING  AND  REVIEW  OF  APPLICATIONS. THE PUBLIC SERVICE
COMMISSION MAY ACT AS LEAD AGENCY PURSUANT TO ARTICLE EIGHT OF THE ENVI-
RONMENTAL CONSERVATION LAW, IN CONNECTION WITH SUCH  PERMIT  APPLICATION
BY  A  GAS CORPORATION OR COMBINATION GAS AND ELECTRIC CORPORATION FRAN-
CHISED UNDER THIS CHAPTER.  THE DEPARTMENTS OF TRANSPORTATION AND  ENVI-
RONMENTAL  CONSERVATION SHALL, TO THE MAXIMUM EXTENT FEASIBLE, ESTABLISH
PROCEDURES TO EXPEDITE PERMIT APPLICATIONS IN CONNECTION WITH THE EXPAN-
SION OF NATURAL GAS SERVICE THROUGH THE EXTENSION OF EXISTING GAS LINES.
  S 3. The public service law is amended by adding a new section 18-d to
read as follows:
  S 18-D. SURCHARGES. NOTWITHSTANDING ANY LAW, RULE, REGULATION OR ORDER
TO THE CONTRARY, THE COMMISSION SHALL, COMMENCING APRIL FIRST, TWO THOU-
SAND FOURTEEN, DEDICATE NO LESS THAN TWENTY-FIVE PERCENT OF THE  AMOUNTS
OF  THE  SURCHARGE FOR THE SYSTEM BENEFIT CHARGE COLLECTED BY GAS CORPO-
RATIONS AND COMBINATION GAS AND ELECTRIC  CORPORATIONS  FROM  THEIR  GAS
HEATING  CUSTOMERS TO THE EXTENSION AND EXPANSION OF NATURAL GAS FACILI-
TIES. THE COMMISSION SHALL BE AUTHORIZED TO  INCREASE  SUCH  AMOUNTS  TO
MORE  THAN  TWENTY-FIVE  PERCENT  AFTER  A  PROCEEDING  TO CONSIDER SUCH
ACTION.  THE COMMISSION SHALL ALLOCATE SUCH FUNDS  TO  GAS  CORPORATIONS
AND  COMBINATION  GAS  AND  ELECTRIC  CORPORATIONS THROUGH A STAKEHOLDER
PROCESS ESTABLISHED BY THE COMMISSION. SUCH  STAKEHOLDER  PROCESS  SHALL
ESTABLISH  RULES AND PROCEDURES FOR ALLOCATIONS PURSUANT TO THIS SECTION
CONSISTENT WITH THE PUBLIC POLICY GOALS OF THE STATE.
  S 4. The public buildings law is amended by adding a new  section  143
to read as follows:
  S  143.  CLEAN  NATURAL  GAS  HEAT  IN  PUBLIC BUILDINGS. EACH CAPITAL
PROJECT FOR A PUBLIC BUILDING THAT INCLUDES THE INSTALLATION OR REPLACE-
MENT OF A BOILER FOR HEATING SHALL REQUIRE THE COMMISSIONER  OF  GENERAL
SERVICES  TO UNDERTAKE A STUDY OF ENERGY EFFICIENCY, ENVIRONMENTAL EFFI-
CACY AND COST OF USING NATURAL GAS HEATING. SUCH  STUDY  SHALL  CONSIDER
THE  BENEFITS  TO SURROUNDING COMMUNITIES IN THE EVENT THAT IT IS NECES-
SARY TO EXTEND A MAIN PIPELINE IN EXCESS OF ONE HUNDRED FEET  TO  OBTAIN
SUCH SERVICES.
  S  5.  The  real  property  tax law is amended by adding a new section
485-r to read as follows:
  S 485-R.  EXTENSION AND EXPANSION OF NATURAL GAS  SUPPLY  THROUGH  THE
CONSTRUCTION OF NATURAL GAS DISTRIBUTION FACILITIES. 1. DEFINITIONS. (A)
FOR  PURPOSES  OF  THIS  SECTION,  "NATURAL GAS DISTRIBUTION FACILITIES"
SHALL MEAN ANY  MAIN  LINE,  SERVICE  LINE  AND  APPURTENANT  FACILITIES
CONSTRUCTED  TO  EXTEND  EXISTING NATURAL GAS LINE INFRASTRUCTURE TO NEW
CUSTOMERS OF A GAS CORPORATION OR A COMBINATION GAS AND ELECTRIC  CORPO-
RATION WITH THEIR CONSENT.
  2.  AFTER A PUBLIC HEARING, THE GOVERNING BODY OF A COUNTY, CITY, TOWN
OR VILLAGE MAY ADOPT A LOCAL LAW AND A SCHOOL  DISTRICT,  OTHER  THAN  A
SCHOOL  DISTRICT  SUBJECT TO ARTICLE FIFTY-TWO OF THE EDUCATION LAW, MAY
ADOPT A LOCAL LAW OR RESOLUTION TO GRANT AN EXEMPTION AUTHORIZED  PURSU-
ANT  TO  THIS  SECTION.  A COPY OF SUCH LOCAL LAW OR RESOLUTION SHALL BE
FILED WITH THE COMMISSIONER AND THE TAX ASSESSOR OF SUCH  COUNTY,  CITY,

S. 5536--A                          3

TOWN  OR  VILLAGE WHO PREPARES THE ASSESSMENT ROLL ON WHICH THE TAXES OF
SUCH COUNTY, CITY, TOWN, VILLAGE OR SCHOOL DISTRICT ARE LEVIED.
  3.  SUCH  NATURAL  GAS  DISTRIBUTION FACILITIES SHALL BE EXEMPT TO THE
EXTENT OF THE INCREASE IN THE ASSESSED VALUE THEREOF ATTRIBUTABLE TO THE
CONSTRUCTION  OF  SUCH  NATURAL  GAS  FACILITIES.  THE  LENGTH  OF  SUCH
EXEMPTION  AND THE PERCENTAGE OF ASSESSED VALUATION EXEMPT FROM TAXATION
SHALL BE SET FORTH IN SUCH LOCAL LAW OR  RESOLUTION,  BUT  IN  NO  EVENT
SHALL IT EXCEED TEN YEARS.
  4.  SUCH  EXEMPTION  SHALL  BE  GRANTED ONLY UPON APPLICATION BY A GAS
CORPORATION OR COMBINATION GAS AND ELECTRIC  CORPORATION  WITH  APPROVAL
FROM THE PUBLIC SERVICE CORPORATION FOR CONSTRUCTION OF SUCH NATURAL GAS
DISTRIBUTION FACILITIES.
  S  6.  The  real  property  tax law is amended by adding a new section
485-q to read as follows:
  S 485-Q.  EXTENSION AND EXPANSION OF NATURAL GAS DISTRIBUTION  FACILI-
TIES.  1.  DEFINITIONS.  (A)  FOR PURPOSES OF THIS SECTION, "NATURAL GAS
DISTRIBUTION FACILITIES" SHALL MEAN ANY  MAIN  LINE,  SERVICE  LINE  AND
APPURTENANT  FACILITIES  CONSTRUCTED TO EXTEND EXISTING NATURAL GAS LINE
INFRASTRUCTURE TO NEW CUSTOMERS OF A GAS CORPORATION  OR  A  COMBINATION
GAS AND ELECTRIC CORPORATION WITH THEIR CONSENT.
  2. (A) WITHIN A CITY HAVING A POPULATION OF ONE MILLION OR MORE, AFTER
A  PUBLIC  HEARING,  THE GOVERNING BODY OF SUCH A CITY MAY ADOPT A LOCAL
LAW OR RESOLUTION TO GRANT AN  EXEMPTION  AUTHORIZED  PURSUANT  TO  THIS
SECTION.  A COPY OF SUCH LOCAL LAW OR RESOLUTION SHALL BE FILED WITH THE
COMMISSIONER AND THE TAX ASSESSOR OF SUCH CITY WHO PREPARES THE  ASSESS-
MENT ROLL ON WHICH THE TAXES OF SUCH CITY ARE LEVIED.
  (B)  SUCH  NATURAL  GAS DISTRIBUTION FACILITIES SHALL BE EXEMPT TO THE
EXTENT OF THE INCREASE IN THE ASSESSED VALUE THEREOF ATTRIBUTABLE TO THE
CONSTRUCTION  OF  SUCH  NATURAL  GAS  FACILITIES.  THE  LENGTH  OF  SUCH
EXEMPTION  AND THE PERCENTAGE OF ASSESSED VALUATION EXEMPT FROM TAXATION
SHALL BE SET FORTH IN SUCH LOCAL LAW OR  RESOLUTION,  BUT  IN  NO  EVENT
SHALL IT EXCEED TEN YEARS.
  3. CONSTRUCTION OF NATURAL GAS DISTRIBUTION FACILITIES SHALL BE DEEMED
TO  HAVE  COMMENCED  WHEN  THE  AGENCY  OR DEPARTMENT OF THE CITY HAVING
JURISDICTION HAS ISSUED A PERMIT FOR CONSTRUCTION WORK AND SUCH WORK HAS
BEGUN IN GOOD FAITH IN ACCORDANCE WITH SUCH PERMIT.
  4. APPLICATION FOR EXEMPTION UNDER THIS SECTION SHALL  BE  FILED  WITH
THE ASSESSORS BETWEEN FEBRUARY FIRST AND MARCH FIFTEENTH OF THE CALENDAR
YEAR  AND  BASED  ON  APPROVAL  BY  THE  PUBLIC  SERVICE  COMMISSION  OF
CONSTRUCTION OF SUCH NATURAL GAS DISTRIBUTION FACILITIES, THE  ASSESSORS
SHALL CERTIFY TO THE COLLECTING OFFICER THE AMOUNT OF THE EXEMPTION FROM
LOCAL  AND MUNICIPAL TAXES. NO SUCH APPLICATION SHALL BE ACCEPTED BY THE
ASSESSORS UNLESS ACCOMPANIED BY AN  APPROVAL  FROM  THE  PUBLIC  SERVICE
COMMISSION.
  5.  SUCH  EXEMPTION  SHALL  BE  GRANTED ONLY UPON APPLICATION BY A GAS
CORPORATION OR COMBINATION GAS AND ELECTRIC  CORPORATION  WITH  APPROVAL
FROM THE PUBLIC SERVICE CORPORATION FOR CONSTRUCTION OF SUCH NATURAL GAS
DISTRIBUTION FACILITIES.
  S 7. Section 1001 of the public authorities law is amended by adding a
new undesignated paragraph to read as follows:
  IT  IS  FURTHER  DECLARED THAT THERE ARE SIGNIFICANT ECONOMIC BENEFITS
FROM THE EXTENSION OF NATURAL  GAS  LINE  INFRASTRUCTURE.    A  CRITICAL
ELEMENT  OF  NATURAL  GAS  LINE  EXTENSIONS  IS  THE  FINANCING  OF  THE
CONSTRUCTION AND INVESTMENT NECESSARY FOR SUCH NATURAL GAS  LINE  EXTEN-
SIONS. THE AUTHORITY IS AUTHORIZED TO MAKE LOANS TO GAS CORPORATIONS AND
COMBINED  GAS  AND  ELECTRIC CORPORATIONS TO EFFECTUATE THE EXTENSION OF

S. 5536--A                          4

EXISTING NATURAL GAS LINE INFRASTRUCTURE WHICH IS APPROVED BY THE PUBLIC
SERVICE COMMISSION.
  S  8.  The  public  authorities law is amended by adding a new section
1005-b to read as follows:
  S 1005-B. ADDITIONAL SPECIAL POWERS OF THE AUTHORITY WITH  RESPECT  TO
THE  EXTENSION OF NATURAL GAS LINE INFRASTRUCTURE.  IN ORDER TO EFFECTU-
ATE THE PURPOSES OF THIS TITLE, THE AUTHORITY SHALL HAVE  THE  FOLLOWING
ADDITIONAL  SPECIAL  POWERS:  TO  EXTEND  CREDIT AND MAKE LOANS TO A GAS
CORPORATION OR A COMBINED GAS AND ELECTRIC CORPORATION FRANCHISED BY THE
PUBLIC SERVICE COMMISSION IN CONNECTION WITH A NATURAL GAS  LINE  EXTEN-
SION  PROJECT  APPROVED  BY  THE  PUBLIC  SERVICE  COMMISSION  FOR COSTS
INCURRED WITH SUCH PROJECTS COMPLETED OR NOT, COMPLETED AT THE  TIME  OF
SUCH CREDIT OR LOAN, WHICH CREDITS OR LOANS MAY, BUT NEED NOT BE SECURED
BY MORTGAGES, CONTRACTS OR OTHER INSTRUMENTS, UPON SUCH TERMS AND CONDI-
TIONS  AS  THE  CORPORATION  MAY DEEM REASONABLE IN CONNECTION WITH SUCH
CREDITS OR LOANS. IN THE EXERCISE OF POWERS GRANTED IN THIS  SECTION  IN
CONNECTION  WITH  A  NATURAL  GAS LINE EXTENSION PROJECT APPROVED BY THE
PUBLIC SERVICE COMMISSION FOR A GAS CORPORATION OR A  COMBINED  GAS  AND
ELECTRIC  CORPORATION,  TO  REQUIRE  THE INCLUSION IN ANY CONTRACT, LOAN
AGREEMENT OR OTHER INSTRUMENT, OF SUCH PROVISIONS FOR THE  FINANCING  OF
SUCH  PROJECT  AND  SUCH OTHER FINANCIAL AND OTHER COVENANTS APPLYING TO
SUCH GAS CORPORATIONS OR A COMBINED GAS AND ELECTRIC CORPORATION, AS THE
CORPORATION MAY DEEM NECESSARY OR DESIRABLE AND TO DO ALL THINGS AND  TO
EXECUTE ALL INSTRUMENTS NECESSARY AND DESIRABLE IN CONNECTION THEREWITH.
IN CONNECTION WITH THE EXTENSION OF ANY SUCH CREDIT OR LOAN, THE AUTHOR-
ITY MAY FIX AND COLLECT SUCH FEES AND CHARGES, INCLUDING BUT NOT LIMITED
TO  REIMBURSEMENT  OF ALL COSTS OF FINANCING BY THE CORPORATION AS SHALL
BE REASONABLE. IN CONNECTION WITH SUCH EXTENSION OF CREDIT  OR  LOAN  AS
PROVIDED  FOR HEREIN SUCH GAS CORPORATION OR A COMBINED GAS AND ELECTRIC
CORPORATION SHALL SUBMIT TO THE AUTHORITY AN APPLICATION FOR THE  EXTEN-
SION  OF  CREDIT  OR LOAN AS SET FORTH IN THE APPLICATION. THE AUTHORITY
MAY DENY ANY SUCH APPLICATION FOR ANY REASON  IT  DEEMS  IN  THE  PUBLIC
INTEREST.  THE  EXTENSION  OF  ANY  SUCH  CREDIT  OR  LOAN IS SUBJECT TO
APPROVAL BY THE PUBLIC SERVICE COMMISSION OF THE PROJECT OR PROJECTS FOR
SUCH NATURAL GAS LINE EXTENSION.
  S 9. Subdivision 1 of section 1010 of the public authorities  law,  as
amended  by  chapter  972  of  the  laws  of 1969, is amended to read as
follows:
  1. The authority shall have power and is hereby authorized  from  time
to  time  to  issue  its  negotiable bonds in conformity with applicable
provisions of the uniform commercial code for the purpose  of  financing
any  project  authorized by this title, including the acquisition of any
real or personal property or facilities deemed necessary by the authori-
ty, AND FOR THE MAKING OF LOANS TO A GAS CORPORATION  OR  A  COMBINATION
GAS AND ELECTRIC CORPORATION FRANCHISED BY THE PUBLIC SERVICE COMMISSION
FOR THE PURPOSES OF SECTION ONE THOUSAND FIVE-B OF THIS TITLE.
  S 10. This act shall take effect immediately.

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