Senate Bill S7339

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

                                  7339

                            I N  S E N A T E

                             March 30, 2010
                               ___________

Introduced  by  Sen. MAZIARZ -- read twice and ordered printed, and when
  printed to be committed to the Committee on  Energy  and  Telecommuni-
  cations

AN  ACT  to  amend  the economic development law, the public authorities
  law, the tax law and the public service law, in relation to  extending
  the  expiration  of  the  power  for  jobs program and the energy cost
  savings benefits program and to the provision of  low  cost  power  to
  foster statewide economic development; and to amend chapter 316 of the
  laws of 1997 amending the public authorities law and other laws relat-
  ing  to  the  provision of low cost power to foster statewide economic
  development, in relation to the effectiveness thereof; and  to  repeal
  section  188  of  the  economic development law relating to industrial
  incentive awards; and providing for the repeal of  certain  provisions
  upon expiration thereof

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

  Section 1. Subdivision (g) of section 183 of the economic  development
law,  as  amended by chapter 226 of the laws of 2002, is amended to read
as follows:
  (g) [The] (1) BEGINNING JULY FIRST, TWO  THOUSAND  ELEVEN,  THE  board
shall [solicit applications for economic development power and for power
under  the power for jobs program by public notice. Such notice shall be
in the form of newspaper advertisements, press  releases,  and  by  such
other means as the board finds appropriate] COMBINE ECONOMIC DEVELOPMENT
POWER  AND  HIGH LOAD FACTOR PROGRAMS WITH THE POWER FOR JOBS PROGRAM TO
FORM ONE PROGRAM, WHICH SHALL BE KNOWN AS THE ECONOMIC DEVELOPMENT POWER
PROGRAM. THE ECONOMIC DEVELOPMENT POWER PROGRAM  SHALL  BE  ADMINISTERED
USING  A  SINGLE  APPLICATION. THE PROGRAM SHALL CONSIST OF FOUR HUNDRED
FIFTY-FIVE  MEGAWATTS  OF  POWER  PREVIOUSLY  ALLOCATED  TO  RESIDENTIAL
CUSTOMERS FROM THE NIAGARA AND SAINT LAWRENCE HYDROELECTRIC PROJECTS AND
AN  ELECTRICITY COST DISCOUNT AS PROVIDED IN SECTION ONE HUNDRED EIGHTY-
SEVEN-A OF THIS ARTICLE.
  (2) Solicitations of preliminary  applications  for  power  under  the
[power for jobs] ECONOMIC DEVELOPMENT POWER program shall begin promptly

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

                                                           LBD16483-03-0

S. 7339                             2

after  the  effective date of [chapter three hundred sixteen of the laws
of nineteen hundred ninety-seven establishing] THE CHAPTER OF  THE  LAWS
OF  TWO THOUSAND TEN WHICH AMENDED THIS SUBDIVISION AND ESTABLISHED such
program.  The board shall solicit applications for the [additional three
hundred megawatts of power available during the  fourth  phase  of  the]
program  by  public  notice,  written  notification to each recipient of
power allocated [during the first phase of the program] UNDER THE  POWER
FOR  JOBS, ECONOMIC DEVELOPMENT, AND HIGH LOAD FACTOR PROGRAMS, and such
other means as the board finds appropriate. [Solicitations  of  applica-
tions  for such three hundred megawatts of power available in phase four
of the program shall begin promptly after the effective date of part  KK
of  chapter  sixty-three  of  the laws of two thousand making such power
available. The board shall solicit applications for the  additional  one
hundred eighty-three megawatts of power available during the fifth phase
of  the program by public notice, written notification to each recipient
of power allocated during the second and third phases  of  the  program,
and  by  such  other means as the board finds appropriate. Solicitations
for such one hundred eighty-three megawatts of power available in  phase
five of the program shall begin promptly after the effective date of the
chapter  of  the  laws of two thousand two making such power available.]
PARTICIPANTS IN THE POWER FOR JOBS, ECONOMIC DEVELOPMENT, AND HIGH  LOAD
FACTOR  PROGRAMS  AS  OF  JUNE  THIRTIETH, TWO THOUSAND ELEVEN, SHALL BE
REQUIRED TO REAPPLY FOR CONTINUED PARTICIPATION IN THE PROGRAM, BUT WILL
BE OFFERED CONTRACTS FOR PARTICIPATION IN THE ECONOMIC DEVELOPMENT POWER
PROGRAM. THE PURPOSE FOR SUCH REAPPLICATION SHALL BE TO  CLASSIFY  THOSE
PARTICIPANTS  INTO THE PROGRAM'S TWO TIERED SYSTEM AS DESCRIBED IN PARA-
GRAPH THREE OF THIS SUBDIVISION.  THEREAFTER,  THE  BOARD  SHALL  ACCEPT
APPLICATIONS  FOR  ANY REMAINING POWER UNDER THE PROGRAM FROM INDUSTRIAL
AND COMMERCIAL BUSINESSES WITH PEAK ENERGY DEMANDS OF FOUR HUNDRED KILO-
WATTS OR MORE.
  (3) BASED ON INFORMATION CONTAINED IN  THE  PRELIMINARY  APPLICATIONS,
THE  BOARD SHALL CLASSIFY EACH APPLICANT AS EITHER A TIER I APPLICANT OR
A TIER II APPLICANT.
  (A) TIER I APPLICANTS ARE BUSINESSES WHICH:
  (I) ARE CONSIDERED ENERGY INTENSIVE, AS DEFINED IN PARAGRAPH  FOUR  OF
THIS SUBDIVISION; AND
  (II)  ARE  NOT  LOCATED  IN  CITIES WITH POPULATIONS OF ONE MILLION OR
MORE; AND
  (III) ARE NOT LOCATED IN THE COUNTIES OF NASSAU, ORANGE, PUTNAM, ROCK-
LAND, SUFFOLK, OR WESTCHESTER.
  (B) TIER II APPLICANTS ARE BUSINESSES WHICH:
  (I) ARE CONSIDERED ENERGY INTENSIVE, AS DEFINED IN PARAGRAPH  FOUR  OF
THIS SUBDIVISION; AND
  (II) ARE LOCATED:
  (A) IN CITIES WITH A POPULATION OF ONE MILLION OR MORE; OR
  (B)  IN  THE COUNTIES OF NASSAU, ORANGE, PUTNAM, ROCKLAND, SUFFOLK, OR
WESTCHESTER.
  (4) A BUSINESS IS CONSIDERED ENERGY INTENSIVE IF:
  (A) THE COST OF ENERGY REPRESENTS A SIGNIFICANT COMPONENT OF THE OPER-
ATING COST OF THE BUSINESS;
  (B) THE COST OF ENERGY HAS A SIGNIFICANT  EFFECT  ON  THE  COMPETITIVE
POSITION OF THE BUSINESS; AND
  (C)  THE  BUSINESS NORMALLY UTILIZES A MINIMUM PEAK ELECTRIC DEMAND OF
ONE HUNDRED KILOWATTS.
  S 2. Paragraphs 2 and 3 of subdivision  (h)  of  section  183  of  the
economic  development  law, paragraph 2 as amended by chapter 217 of the

S. 7339                             3

laws of 2009, paragraph 3 as added by chapter 313 of the laws  of  2005,
are amended and a new subdivision (i) is added to read as follows:
  2.  During  the period commencing on November first, two thousand five
and ending on [May fifteenth, two  thousand  ten]  JUNE  THIRTIETH,  TWO
THOUSAND  ELEVEN eligible businesses shall only include customers served
under the power authority of the state of New York's high  load  factor,
economic  development power and other business customers served by poli-
tical subdivisions of the state authorized  by  law  to  engage  in  the
distribution  of electric power that were authorized to be served by the
authority from the authority's former  James  A.    Fitzpatrick  nuclear
power  plant  as  of  the effective date of this subdivision whose power
prices may be subject to increase before [May  fifteenth,  two  thousand
ten]  JUNE  THIRTIETH, TWO THOUSAND ELEVEN.  Provided, however, that the
total amount of megawatts of replacement and preservation  power  which,
due to the extension of the energy cost savings benefits, are not relin-
quished  by  or  withdrawn from a recipient shall be deemed to be relin-
quished or withdrawn for purposes of  offering  such  megawatts  by  the
authority  for  reallocation pursuant to subdivision thirteen of section
one thousand five of the public authorities law. Provided, further, that
for any such reallocation, the authority shall maintain the same  energy
cost  savings benefit level for all eligible businesses using any avail-
able authority resources as deemed feasible and advisable by  the  trus-
tees  pursuant  to  section seven of part U of chapter fifty-nine of the
laws of two thousand six.
  3. Each application for an energy cost savings benefit (UP  AND  UNTIL
JULY  FIRST,  TWO  THOUSAND  ELEVEN)  OR  AN  ECONOMIC DEVELOPMENT POWER
PROGRAM ALLOCATION shall be evaluated  under  criteria  adopted  by  the
board  [in  consultation  with  the  power authority of the state of New
York], which criteria shall be designed to promote economic development,
maintain and develop jobs, and encourage new capital investment through-
out the state of New York. Such criteria shall address but need  not  be
limited to:
  (a)  the  overall  economic  impact  of  the applicant in terms of the
number of jobs to be created or retained, average annual payroll,  capi-
tal investment and use of New York state suppliers;
  (b)  the  likelihood that in the absence of approval of an energy cost
savings benefit OR AN ECONOMIC DEVELOPMENT POWER PROGRAM ALLOCATION, the
applicant would close, contract or relocate outside  the  state  of  New
York;
  (c)  [the  applicant's compliance with the commitment to retain and/or
create jobs contained in its prior power contract with the power author-
ity of the state of New  York]  THE  APPLICANT'S  CURRENT  OR  COMMITTED
INVESTMENT IN ENERGY EFFICIENCY MEASURES; and
  (d)  the extent to which an energy cost savings benefit OR AN ECONOMIC
DEVELOPMENT POWER PROGRAM ALLOCATION will affect the overall  productiv-
ity  or  competitiveness  of  the  applicant's business and its existing
employment within the state.
  (I) TO SOLICIT APPLICATIONS FOR ELECTRICITY COST  DISCOUNTS  AND  MAKE
RECOMMENDATIONS  TO  THE POWER AUTHORITY OF THE STATE OF NEW YORK IN THE
MANNER AUTHORIZED IN SECTION ONE HUNDRED EIGHTY-SEVEN-A OF THIS ARTICLE.
  S 3. Section 184 of the economic development law, as added by  chapter
32 of the laws of 1987, is amended to read as follows:
  S  184.  Criteria  for  eligibility for THE economic development power
PROGRAM.  Each application for an  allocation  of  economic  development
power  shall  be  evaluated  under  criteria  adopted by the board. Such
criteria shall address[, but need not be limited to]:

S. 7339                             4

  (a) [the number of new jobs created as a result of an economic  devel-
opment  power  allocation] THE SIGNIFICANCE OF THE COST OF ENERGY TO THE
COMPETITIVE POSITION AND OPERATING COST OF THE APPLICANT;
  (b)  [the  applicant's  long-term  commitment  to  New  York state, as
evidenced by the applicant's current and/or planned  capital  investment
in  business  facilities  in New York state] THE APPLICANT'S CURRENT AND
PLANNED USE OF CASH FLOW FOR CAPITAL INVESTMENT WITHIN NEW YORK STATE;
  (c) [the ratio of the number of jobs to be created to  the  amount  of
economic  development  power requested by the applicant] THE SIZE OF THE
APPLICANT'S PAYROLL AND NUMBER OF JOBS THAT ARE PLANNED OR AT RISK;
  (d) [the types of jobs  created,  as  measured  by  wage  and  benefit
levels,  security  and stability of employment] WHETHER PROGRAM BENEFITS
WOULD PREVENT THE CLOSURE OR RELOCATION OF THE APPLICANT'S FACILITIES;
  (e) [the type and cost of buildings, equipment and  facilities  to  be
constructed,  enlarged or installed] THE CONTRIBUTION MADE BY THE APPLI-
CANT TO THE LOCAL ECONOMY; AND
  (f) [the extent to which economic development power  will  affect  the
overall  productivity or competitiveness of the applicant's business and
its existing employment within the state;] THE  APPLICANT'S  CURRENT  OR
COMMITTED INVESTMENT IN ENERGY EFFICIENCY MEASURES.
  [(g)  the  extent to which an allocation of economic development power
may result in a competitive disadvantage for  other  businesses  in  the
state;
  (h)  the general economic conditions and economic distress in the area
in which the applicant's business facility  would  be  located  and  the
extent to which economic development power could contribute to the alle-
viation of such distress;
  (i) the growth potential of the business facility and the contribution
of  economic  strength  to the area in which the business facility is or
would be located;
  (j) the extent of the applicant's willingness to make  jobs  available
to persons defined as eligible for services under the federal job train-
ing partnership act of nineteen hundred eighty-two and the extent of the
applicant's willingness to satisfy affirmative action goals;
  (k) the extent to which an allocation of economic development power is
consistent  with  state, regional and local economic development strate-
gies and priorities and supported by local units of  government  in  the
area in which the business is located; and
  (l) the impact of the allocation on the operation of any other facili-
ties  of  the  applicant, on other businesses within the state, and upon
other electric ratepayers.]
  S 4. The opening paragraph of section 185 of the economic  development
law,  as  added by chapter 32 of the laws of 1987, is amended to read as
follows:
  In addition to the criteria described in section one  hundred  eighty-
four of this article and such other criteria as the board may by rule or
regulation  define, an economic development power PROGRAM allocation may
be made to a business in serious, long-term distress that is not  prima-
rily  caused  by  normal, short-term changes in the business cycle, when
the applicant demonstrates to the satisfaction of the board:
  S 5. The section heading and subdivisions (c), (d),  (f)  and  (g)  of
section  187  of the economic development law, as amended by chapter 316
of the laws of 1997, are amended and two new subdivisions  (h)  and  (i)
are added to read as follows:
  Economic development power [and power for jobs] PROGRAM allocations.

S. 7339                             5

  (c)  The board shall review the applications received and shall deter-
mine the applications which best meet the criteria established  for  the
allocations  authorized  under  this article and it shall recommend such
applications to the power authority of the state of New York  with  such
terms  and  conditions  as  it deems appropriate. Except for allocations
subject to subdivision (g) of this section, PARAGRAPH TWO OF SUBDIVISION
(G) OF SECTION ONE HUNDRED EIGHTY-THREE, and section one hundred  eight-
y-five  of  this  article, each allocation of economic development power
recommended by the board shall be to  serve  new  electrical  demand  at
facilities [at which new jobs are created] THAT MEET THE CRITERIA ESTAB-
LISHED  IN  SECTION  ONE  HUNDRED EIGHTY-FOUR OF THIS ARTICLE; PROVIDED,
HOWEVER, THAT IF AN  APPLICANT  MEETS  ALL  OTHER  ESTABLISHED  CRITERIA
EXCEPT  FOR THE REQUIREMENT RELATING TO THE USE AND INVESTMENT IN ENERGY
EFFICIENCY MEASURES, THEN SUCH APPLICANT IS ELIGIBLE TO BE COUNSELED  ON
AVAILABLE  STATE  APPROVED EFFICIENCY PROGRAMS AND OFFERED PARTICIPATION
IN SUCH PROGRAMS  WHERE  POSSIBLE  AND  APPLICABLE,  AND  SHALL  NOT  BE
EXCLUDED FROM RECOMMENDATION OF A POWER ALLOCATION SOLELY ON THE GROUNDS
OF  A  FAILURE  TO  MEET  THIS CRITERIA. Such terms and conditions shall
include reasonable provisions providing  for  the  partial  or  complete
withdrawal  of the economic development power in the event the recipient
fails to maintain [mutually agreed upon levels of employment  and  power
utilization] THE CRITERIA ESTABLISHED IN SECTION ONE HUNDRED EIGHTY-FOUR
OF THIS ARTICLE.
  (d) Allocations FROM THE FOUR HUNDRED FIFTY-FIVE MEGAWATTS of economic
development  power  shall be recommended only to or for the use of busi-
nesses which [normally utilize a minimum peak electric  demand  of  four
hundred  kilowatts] ARE CLASSIFIED IN TIER I PURSUANT TO SUBDIVISION (G)
OF SECTION ONE HUNDRED EIGHTY-THREE OF THIS ARTICLE.  [At least one half
of all economic development power allocations shall be  recommended  for
applicants  within  the  geographic areas served by Long Island Lighting
Company, Consolidated Edison Company of New York,  Orange  and  Rockland
Utilities, Incorporated, Central Hudson Gas and Electric Corporation and
that  part  of  Westchester,  Putnam and Dutchess counties served by New
York State Electric and Gas Corporation. No more than fifty  percent  of
the  available economic development power shall be recommended for allo-
cation to applicants located within a single  municipality  except  upon
the unanimous recommendation of the board.]
  (f)  Upon  approval  or  denial of any application for POWER UNDER THE
POWER FOR JOBS PROGRAM OR UNDER THE economic development power or  power
PROGRAM,  under  the  power  for  jobs program, the board shall issue in
writing a statement of its findings and conclusions with respect to such
application and the reasons for its approval or denial.
  (g) [Within cities of a population of one  million  or  more  and  the
counties  of  Dutchess,  Nassau,  Orange,  Putnam, Rockland, Suffolk and
Westchester, an economic development power allocation may be recommended
for the purpose of job retention by  unanimous  approval  of  the  board
applying  the criteria developed pursuant to section one hundred eighty-
four of this article and when an applicant on behalf of a business with-
in such city or county demonstrates to the board (a) the business' plans
to relocate out of state resulting in the loss of a  substantial  number
of  jobs  and  its  commitment to new investments in real property of at
least twelve and one-half percent of the effective market  value  or  to
relocate  within  such  city  or  county  to comparable facilities, upon
receiving an economic development allocation, and (b) that the applicant
or the business first has made the greatest practicable use of all other
potential assistance and means, including but not limited to  other  low

S. 7339                             6

cost  power  and/or  energy,  tax and energy cost abatement measures and
administrative steps to make possible the business'  new  investment  or
relocation. For the purposes of this subdivision, effective market value
for  special assessing units, as defined in article eighteen of the real
property tax law, shall be determined by dividing the assessed value  of
the property on the latest completed assessment roll by the latest class
ratio  applicable  to the class in which the property is classified, and
for all other assessing units, effective market value  shall  be  deter-
mined  by  dividing  the  assessed  value  of the property on the latest
completed assessment roll by  the  final  state  equalization  rate  for
special  equalization rate as promulgated by the office of real property
services pursuant to article twelve of the real property tax  law.]  THE
FOUR HUNDRED FIFTY-FIVE MEGAWATTS OF ECONOMIC DEVELOPMENT POWER SHALL BE
MADE  AVAILABLE FOR ALLOCATION IN THREE PHASES DURING A THREE-YEAR PERI-
OD. ONE HUNDRED MEGAWATTS, CONSTITUTING THE FIRST PHASE OF THE  PROGRAM,
SHALL  BE  ALLOCATED  DURING  THE  FIRST YEAR, AN ADDITIONAL ONE HUNDRED
FIFTY MEGAWATTS, CONSTITUTING THE SECOND PHASE OF THE PROGRAM, SHALL  BE
ALLOCATED  DURING  THE  SECOND  YEAR,  AND  TWO  HUNDRED FIVE MEGAWATTS,
CONSTITUTING THE THIRD PHASE, SHALL BE ALLOCATED DURING THE THIRD  YEAR.
IF  THE  BOARD  DOES  NOT RECOMMEND ALLOCATIONS FOR THE FULL ONE HUNDRED
MEGAWATTS IN THE FIRST YEAR OF THE PROGRAM, SUCH POWER  SHALL  BE  ALLO-
CATED  DURING  THE SECOND YEAR OF THE PROGRAM, PROVIDED THAT TWO HUNDRED
FIFTY MEGAWATTS OF ALLOCATIONS MUST BE ALLOCATED WITHIN TWO YEARS OF THE
EFFECTIVE DATE OF THE CHAPTER OF THE LAWS  OF  TWO  THOUSAND  TEN  WHICH
AMENDED  THIS  SUBDIVISION  AND  PROVIDED FURTHER THAT THE REMAINING TWO
HUNDRED FIVE MEGAWATTS MUST BE ALLOCATED  WITHIN  THREE  YEARS  OF  SUCH
EFFECTIVE DATE.
  (H)  TIER I APPLICANTS THAT ARE DEEMED TO BE IN SUBSTANTIAL COMPLIANCE
WITH ALL OF THEIR CONTRACTUAL COMMITMENTS WILL BE AUTOMATICALLY ELIGIBLE
FOR AN ALLOCATION.
  (I) CONTRACTS FOR POWER ALLOCATIONS TO TIER I APPLICANTS.
  (1) TIER I APPLICANTS ENROLLED  IN  THE  HIGH  LOAD  FACTOR,  ECONOMIC
DEVELOPMENT  OR  POWER FOR JOBS PROGRAMS AS OF THE EFFECTIVE DATE OF THE
CHAPTER OF THE LAWS OF TWO THOUSAND TEN WHICH AMENDED  THIS  SUBDIVISION
SHALL  BE  GRANDFATHERED INTO THE ECONOMIC DEVELOPMENT POWER PROGRAM BUT
SHALL BE REQUIRED TO ENTER INTO NEW CONTRACTS WITH THE BOARD.  SUCH  NEW
CONTRACTS  SHALL  PHASE  OUT  THE  BENEFITS RECEIVED UNDER THE HIGH LOAD
FACTOR, ECONOMIC DEVELOPMENT OR POWER FOR JOBS PROGRAMS OVER TERMS  THAT
COINCIDE  WITH  THE PHASE IN OF POWER ALLOCATIONS UNDER SUBDIVISIONS (G)
AND (H) OF THIS SECTION.
  (2) THE BOARD SHALL RECOMMEND ALLOCATIONS OF  POWER  UNDER  THE  THREE
PHASES OF SUBDIVISION (G) THIS SECTION UNDER CONTRACTS WITH AN EFFECTIVE
TERM  OF AT LEAST SEVEN YEARS AND OTHER TERMS AND CONDITIONS AS IT DEEMS
APPROPRIATE. CONTRACTS UNDER THIS SECTION SHALL BE REVIEWED ON AN ANNUAL
BASIS TO DETERMINE CONTINUED ELIGIBILITY. UPON DETERMINATION OF  CONTIN-
UED  ELIGIBILITY, THE CONTRACTS SHALL BE RENEWED FOR AN ADDITIONAL YEAR,
THUS RETAINING THE FULL TERM OF THE CONTRACTS.
  S 6. The economic development law is amended by adding a  new  section
187-a to read as follows:
  S  187-A.  ELECTRICITY  COST  DISCOUNTS.    (A)  DEFINITIONS.  FOR THE
PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE  THE  FOLLOWING
MEANINGS:
  (1)  "APPLICABLE CRITERIA" SHALL MEAN THE CRITERIA SPECIFIED IN SUBDI-
VISION (C) OF THIS SECTION.
  (2) "AUTHORITY" SHALL MEAN THE POWER AUTHORITY OF  THE  STATE  OF  NEW
YORK.

S. 7339                             7

  (3)  "BOARD"  SHALL  MEAN  THE  ECONOMIC  DEVELOPMENT POWER ALLOCATION
BOARD.
  (4)  "ELECTRICITY  COST  DISCOUNT" OR "DISCOUNT" SHALL MEAN A DISCOUNT
PAID BY THE AUTHORITY PURSUANT TO  SECTION  ONE  THOUSAND  FIVE  OF  THE
PUBLIC  AUTHORITIES  LAW  IN  THE FORM OF AN ELECTRIC BILL CREDIT ON THE
INVOICE PROVIDED  BY  THE  RECIPIENT'S  LOCAL  DISTRIBUTOR  OF  ELECTRIC
SERVICE  PURSUANT  TO  THE  ELECTRICITY COST DISCOUNT PROGRAM CREATED BY
THIS SECTION.
  (5) "ELIGIBLE APPLICANT" SHALL MEAN AN APPLICANT CLASSIFIED UNDER TIER
II PURSUANT TO PARAGRAPH THREE OF SUBDIVISION (G) OF SECTION ONE HUNDRED
EIGHTY-THREE OF THIS ARTICLE, PROVIDED HOWEVER, THAT AN ELIGIBLE  APPLI-
CANT  SHALL  NOT  INCLUDE  RETAIL  BUSINESSES  AS  DEFINED BY THE BOARD,
INCLUDING,   WITHOUT    LIMITATION,    SPORTS    VENUES,    GAMING    OR
ENTERTAINMENT-RELATED  ESTABLISHMENTS  OR  PLACES  OF OVERNIGHT ACCOMMO-
DATION.
  (6) "LOCAL DISTRIBUTOR OF ELECTRIC SERVICE"  SHALL  MEAN  AN  ELECTRIC
CORPORATION  AS  DEFINED  IN  SUBDIVISION THIRTEEN OF SECTION TWO OF THE
PUBLIC SERVICE LAW OR THE LONG ISLAND POWER AUTHORITY.
  (B) APPLICATIONS.  (1) THE BOARD MAY SOLICIT  APPLICATIONS  FOR  ELEC-
TRICITY  COST DISCOUNTS BY PUBLIC NOTICE BEGINNING ON JANUARY FIRST, TWO
THOUSAND ELEVEN. SUCH NOTICE MAY INCLUDE NEWSPAPER ADVERTISEMENTS, PRESS
RELEASES, WEBSITE POSTINGS, PAPER OR  ELECTRONIC  MAILING,  AND/OR  SUCH
OTHER  FORM  AS  THE  BOARD  FINDS  APPROPRIATE IN CONSULTATION WITH THE
AUTHORITY.
  (2) APPLICATIONS FOR ELECTRICITY COST DISCOUNTS SHALL BE IN  THE  FORM
AND CONTAIN SUCH INFORMATION, EXHIBITS AND SUPPORTING DATA AS THE BOARD,
IN  CONSULTATION WITH THE AUTHORITY, PRESCRIBES. A COPY OF EACH APPLICA-
TION RECEIVED SHALL BE PROVIDED TO THE AUTHORITY.
  (3) AN APPLICANT WHO IS ALSO  A  RECIPIENT  OF  OTHER  BENEFITS  UNDER
ANOTHER  POWER  PROGRAM  OF THE AUTHORITY SHALL BE ELIGIBLE TO APPLY FOR
ELECTRICITY COST DISCOUNTS ONLY IF IT IS IN COMPLIANCE WITH ITS CONTRAC-
TUAL COMMITMENTS MADE IN CONNECTION WITH SUCH OTHER  PROGRAM;  PROVIDED,
HOWEVER THAT AN APPLICANT SHALL NOT BE ENTITLED TO RECEIVE BOTH AN ELEC-
TRICITY  COST  DISCOUNT  UNDER THIS SECTION AND BENEFITS UNDER ANY POWER
AUTHORITY ECONOMIC DEVELOPMENT POWER PROGRAM WITH RESPECT  TO  THE  SAME
QUANTITY OF ELECTRICITY CONSUMED AT A PREMISES.
  (4)  SUBJECT  TO  CONFIDENTIALITY  REQUIREMENTS,  UPON RECEIPT OF EACH
APPLICATION BY THE BOARD, THE BOARD SHALL PROMPTLY POST ON  ITS  WEBSITE
THE  NAME  AND  A  DESCRIPTION  OF THE APPLICANT, AND THE ADDRESS OF THE
APPLICANT'S FACILITIES THAT WOULD RECEIVE THE BENEFIT OF  THE  DISCOUNT,
AND  THE  AMOUNT  OF  BENEFIT SOUGHT. THE AUTHORITY SHALL ALSO DEVELOP A
SIMILAR LISTING AND MAKE IT AVAILABLE FOR PUBLIC REVIEW ON ITS WEBSITE.
  (C) REVIEW, APPLICABLE CRITERIA AND RECOMMENDATIONS.   (1)  THE  BOARD
SHALL  REVIEW  APPLICATIONS SUBMITTED FOR ELECTRICITY COST DISCOUNTS AND
MAKE AN INITIAL DETERMINATION OF WHETHER THE APPLICANT  IS  AN  ELIGIBLE
APPLICANT. IN THE CASE OF AN ELIGIBLE APPLICANT, THE BOARD MAY RECOMMEND
TO  THE  AUTHORITY  THAT  AN  ELECTRICITY COST DISCOUNT BE AWARDED TO AN
APPLICANT BASED ON AN APPLICATION OF THE CRITERIA FOUND IN  SECTION  ONE
HUNDRED EIGHTY-FOUR OF THIS ARTICLE.
  (2)  A RECOMMENDATION BY THE BOARD THAT THE AUTHORITY PROVIDE AN ELEC-
TRICITY COST DISCOUNT TO AN ELIGIBLE APPLICANT SHALL  INCLUDE:  (I)  THE
AMOUNT  OF  THE  ELECTRICITY COST DISCOUNT THAT THE BOARD HAS DETERMINED
SHOULD BE AWARDED TO SUCH APPLICANT, PROVIDED HOWEVER,  THAT  THE  BOARD
MAY  RECOMMEND  AN  ELECTRICITY  COST DISCOUNT IN AN AMOUNT THAT IS LESS
THAN THE AMOUNT REQUESTED BY AN ELIGIBLE APPLICANT; (II) A CONTRACT TERM
BETWEEN THE ELIGIBLE APPLICANT AND THE AUTHORITY WHICH SHALL NOT BE LESS

S. 7339                             8

THAN SEVEN YEARS, PROVIDED HOWEVER THAT THE TERM OF  ANY  SUCH  CONTRACT
SHALL  NOT  BECOME EFFECTIVE BEFORE JULY FIRST, TWO THOUSAND ELEVEN; AND
(III) SUCH OTHER TERMS AND CONDITIONS THAT THE BOARD DEEMS APPROPRIATE.
  (3)  WHEN THE BOARD CHOOSES AMONG ELIGIBLE APPLICANTS, IT MAY BASE ITS
RECOMMENDATION ON WHICH ELIGIBLE APPLICANTS IT DETERMINES BEST MEET  THE
APPLICABLE  CRITERIA;  PROVIDED  HOWEVER  THAT THE BOARD MAY SET ASIDE A
PORTION OF THE BENEFITS AVAILABLE UNDER THE  ELECTRICITY  COST  DISCOUNT
PROGRAM  FOR  APPLICANTS  THAT  WILL COMMIT TO CREATE NEW JOBS OR RETAIN
EXISTING JOBS, OR MAKE A NEW CAPITAL INVESTMENT.
  (4) A RECOMMENDATION FOR AN ELECTRICITY COST DISCOUNT SHALL QUALIFY AN
APPLICANT TO ENTER INTO A CONTRACT TO RECEIVE  SUCH  DISCOUNT  FROM  THE
AUTHORITY  PURSUANT TO THE TERMS AND CONDITIONS OF THE RECOMMENDATION OR
ON SUCH OTHER TERMS AS THE AUTHORITY DETERMINES TO BE APPROPRIATE.  SUCH
CONTRACTS  SHALL  PROVIDE THAT THE LOCAL DISTRIBUTOR OF ELECTRIC SERVICE
WILL PROVIDE CUSTOMER AND BILLING SERVICES UPON  MUTUALLY  AGREED  TERMS
AND CONDITIONS.
  (5) UPON APPROVAL OR DENIAL OF ANY APPLICATION FOR AN ELECTRICITY COST
DISCOUNT,  THE  BOARD SHALL ISSUE IN WRITING A STATEMENT OF ITS FINDINGS
AND CONCLUSIONS WITH RESPECT TO SUCH APPLICATION AND THE REASONS FOR ITS
APPROVAL OR DENIAL.
  (6) NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION, WITH  RESPECT
TO  APPLICANTS  WHO  AS  OF  DECEMBER  FIRST,  TWO  THOUSAND TEN, ARE IN
SUBSTANTIAL COMPLIANCE WITH ALL CONTRACTUAL  COMMITMENTS  AND  RECEIVING
BENEFITS  UNDER  THE  POWER FOR JOBS, ECONOMIC DEVELOPMENT, OR HIGH LOAD
FACTOR, THE BOARD SHALL RECOMMEND AND THE  AUTHORITY  SHALL  PROVIDE  AN
AWARD  OF  AN  ELECTRICITY  COST DISCOUNT AN AMOUNT THAT IS EQUAL TO THE
VALUE OF SUCH BENEFIT RECEIVED IN THE  PRECEDING  TWELVE  MONTHS.    THE
AUTHORITY  SHALL  CONTINUE TO SUPPLY LOW COST POWER AND ENERGY AND APPLY
AUTHORITY RESOURCES TO SUPPORT THE ECONOMIC  DEVELOPMENT  POWER  PROGRAM
DESCRIBED IN SUBDIVISION (G) OF SECTION ONE HUNDRED EIGHTY-THREE OF THIS
ARTICLE.
  (7) SUBJECT TO THE TWELFTH UNDESIGNATED PARAGRAPH OF SECTION ONE THOU-
SAND  FIVE  OF THE PUBLIC AUTHORITIES LAW, THE BOARD SHALL NOT RECOMMEND
ANY ELECTRICITY COST DISCOUNTS UNDER THIS PROGRAM FOR USAGE IN EXCESS OF
ONE THOUSAND MEGAWATTS OF ELECTRICITY.
  (8) EACH CONTRACT ENTERED INTO BETWEEN AN  ELIGIBLE  APPLICANT  RECOM-
MENDED  BY THE BOARD AND THE AUTHORITY SHALL CONTAIN A PROVISION CALLING
FOR AN ANNUAL REVIEW BY  THE  AUTHORITY  OF  THE  RECIPIENT'S  CONTINUED
ELIGIBILITY  FOR  THE ELECTRICITY COST DISCOUNT AND A SEPARATE PROVISION
PERMITTING THE CANCELLATION OF THE CONTRACT UPON A DETERMINATION OF  THE
LACK OF ELIGIBILITY.
  S 7. Section 188 of the economic development law is REPEALED.
  S  8.  The second undesignated paragraph of section 1005 of the public
authorities law, as amended by chapter 313  of  the  laws  of  2005,  is
amended to read as follows:
  The authority is authorized to procure through a competitive solicita-
tion  process  power  and  energy  from  the  competitive  market and to
construct, improve and/or rehabilitate throughout its  area  of  service
(a) such hydroelectric or energy storage projects, as it deems necessary
or  desirable  to contribute to the adequacy, economy and reliability of
the supply of electric power and energy or to conserve fuel and (b) such
base-load nuclear generating facilities or  other  facilities  utilizing
new  energy  technologies as in its judgment are necessary (i) to supply
sufficient supplemental energy to  make  possible  optimum  use  of  the
generating capacity of the authority's Saint Lawrence and Niagara hydro-
electric projects, (ii) to supply low cost power and energy to high load

S. 7339                             9

factor  manufacturers which will build new facilities in the authority's
area of service or expand existing facilities provided  such  power  and
energy is made available to them[, and] (iii) to supply the future needs
of  the authority's existing municipal electric and rural electric coop-
erative customers, AND (IV) TO SUPPLY LOW  COST  POWER  AND  ENERGY  AND
APPLY  AUTHORITY  RESOURCES  TO  SUPPORT  THE ECONOMIC DEVELOPMENT POWER
PROGRAM DESCRIBED IN SUBDIVISION (G) OF SECTION ONE HUNDRED EIGHTY-THREE
OF THE ECONOMIC DEVELOPMENT LAW.
  S 9. Paragraphs a, b, d, e and f of the ninth  undesignated  paragraph
of  section 1005 of the public authorities law, paragraphs a, b and f as
amended by chapter 313 of the laws of 2005, and paragraphs d  and  e  as
amended  by  section 1 of part KK of chapter 63 of the laws of 2000, are
amended to read as follows:
  a. Notwithstanding any  inconsistent  provision  of  this  title,  the
authority  shall make available all economic development power for allo-
cation to or for businesses and whose allocation of such power is recom-
mended by the New York state economic development power allocation board
pursuant to section one hundred eighty-seven of the economic development
law. "Economic development power" shall mean any power that is voluntar-
ily relinquished by businesses to the authority, except  that  PRIOR  TO
JULY FIRST, TWO THOUSAND ELEVEN, it shall not include any power from the
Niagara or Saint Lawrence-FDR projects or power under the power for jobs
program which may be voluntarily relinquished by businesses, small busi-
nesses and not-for-profit corporations.
  b.  Notwithstanding  any  inconsistent  provision  of  this title, the
authority shall make available  all  power  under  the  power  for  jobs
program  for  allocation to or for businesses, small businesses and not-
for-profit corporations and whose allocation of  such  power  is  recom-
mended  by such board AND COMMENCING JULY FIRST, TWO THOUSAND ELEVEN THE
AUTHORITY SHALL MAKE AVAILABLE  FOUR  HUNDRED  FIFTY-FIVE  MEGAWATTS  OF
POWER  FROM THE NIAGARA AND SAINT LAWRENCE-FDR PROJECTS TO THE BOARD FOR
THE ECONOMIC DEVELOPMENT POWER PROGRAM pursuant to section  one  hundred
[eighty-nine]  EIGHTY-SEVEN of the economic development law. Power under
the power for jobs program shall mean four hundred  fifty  megawatts  of
power  in  the  initial three phases of the program, three hundred mega-
watts of power in the fourth phase  of  the  program,  and  one  hundred
eighty-three  megawatts in the fifth phase of the program. The authority
shall provide the least cost power available acquired through a  compet-
itive  procurement process, from authority sources, or through an alter-
nate method. The authority shall conduct a competitive procurement proc-
ess and may provide power through an alternate method  if  the  cost  is
lower  than the cost of power obtained through a competitive procurement
process; provided, however, that the use of such lower cost  power  from
authority  sources  shall  not  reduce  the availability of, or cause an
increase in the price of, power provided by the authority for any  other
program  authorized  in  this  article or pursuant to any other statute.
Such competitive procurement process shall be established by the econom-
ic development power allocation board, in consultation with the  depart-
ment  of public service, and implemented by the authority. Notwithstand-
ing the foregoing, the power to be provided by  the  authority  for  the
fifth phase of the power for jobs program shall include, for the purpose
of  determining the total amount of power to be delivered to recipients,
power provided to program participants  by  other  suppliers  under  the
energy  service company option pursuant to paragraph four of subdivision
a of section one hundred eighty-nine of the  economic  development  law.
For  the  purposes  of  this  paragraph and subdivision fourteen of this

S. 7339                            10

section, "local distributor of electric service" shall mean an  electric
corporation  as  defined  in  subdivision thirteen of section two of the
public service law that was a member of the New York power pool on Janu-
ary first, nineteen hundred ninety-five, or its successor in interest.
  d. The authority shall report quarterly to the New York state economic
development  power  allocation  board on the anticipated availability of
[economic development] power [and power under the power  for  jobs]  FOR
THE  ECONOMIC  DEVELOPMENT POWER program for the subsequent twelve-month
period.
  e. When the authority determines that [economic development] power [or
power under the power for  jobs]  FOR  THE  ECONOMIC  DEVELOPMENT  POWER
program  is  available,  the  authority  shall notify the New York state
economic development power allocation board.
  f. The authority shall provide for the sale of power to  its  economic
development power [customers] PROGRAM PARTICIPANTS at a uniform non-dis-
criminatory rate. The authority shall provide for the sale of power from
[authority  sources,  power  acquired  through a competitive procurement
process established by the New York  state  economic  development  power
allocation  board,  or power provided by the authority through an alter-
nate method] THE NIAGARA AND SAINT LAWRENCE-FDR  HYDROELECTRIC  PROJECTS
to  local  distributors  of electric service for businesses and not-for-
profit corporations receiving allocations of power under the  power  for
jobs  OR  FOR  TIER  I  PARTICIPANTS  IN  THE ECONOMIC DEVELOPMENT POWER
program at a rate that  shall  combine  the  rate  set  for  power  from
[authority  sources  and  the  actual cost of power obtained through the
competitive procurement process or from an alternate method] THE NIAGARA
AND  SAINT  LAWRENCE-FDR  HYDROELECTRIC  PROJECTS,  with  no   mark-up[;
provided however, that prior to the time when power is available through
the  competitive  procurement process, the authority shall provide power
under the power for jobs program at the rate set for power from authori-
ty sources].
  S 10. Paragraph (g) of the ninth  undesignated  paragraph  of  section
1005  of  the  public  authorities law, as amended by chapter 226 of the
laws of 2002, and subparagraph 2 as amended by chapter 217 of  the  laws
of 2009, is amended to read as follows:
  g.  1.  [The authority is authorized, as deemed feasible and advisable
by the trustees, to use revenues from the sale of power from the Fitzpa-
trick nuclear project under the initial three phases of  the  power  for
jobs  program  established  pursuant to chapter three hundred sixteen of
the laws of nineteen hundred ninety-seven, to the extent  such  revenues
exceed  revenues  from the sale of such power in the calendar year prior
to the effective date of chapter three hundred sixteen of  the  laws  of
nineteen hundred ninety-seven, to make a voluntary contribution no later
than  sixty  days  after the end of the state fiscal year into the state
treasury to the credit of the general fund.
  2.] The authority, as deemed feasible and advisable by  the  trustees,
is authorized to make payments to recipients of the power for jobs elec-
tricity  savings reimbursements and additional annual voluntary contrib-
utions into the state treasury to the credit of the general fund.    The
authority  shall  make such contributions to the state treasury no later
than ninety days after the end of the calendar year in  which  a  credit
under  subdivision  nine  of section one hundred eighty-six-a of the tax
law is available: (a) for the  additional  three  hundred  megawatts  of
power  under  the  fourth  phase  of  the program provided under chapter
sixty-three of the laws of two thousand and under the  fifth  phase  for
the additional one hundred eighty-three megawatts provided under chapter

S. 7339                            11

two  hundred twenty-six of the laws of two thousand two; and (b) for any
extension of any contract for allocations under the fourth phase of  the
program and under the fifth phase of the program. Payments for any elec-
tricity  savings  reimbursement under section one hundred eighty-nine of
the economic development law shall be made  pursuant  to  such  section.
Such  annual  contributions shall be equal to fifty percent of the total
amount of such credits available each year to all local distributors  of
electricity.  In  addition, such authorization for contribution in state
fiscal year two thousand two--two thousand three shall be equal  to  the
total  amount  of  credit available in two thousand one and two thousand
two; and such authorization for contribution in state  fiscal  year  two
thousand  three--two thousand four shall be equal to the total amount of
credit available in  two  thousand  three;  under  subdivision  nine  of
section  one  hundred eighty-six-a of the tax law under the fourth phase
of the POWER FOR JOBS program for the additional three hundred megawatts
provided under chapter sixty-three of the laws of two thousand and under
the fifth phase OF THE POWER FOR JOBS PROGRAM  for  the  additional  one
hundred  eighty-three megawatts provided under chapter two hundred twen-
ty-six of the laws of two thousand two. In state fiscal year  two  thou-
sand  four--two thousand five, such authorized annual contribution shall
be equal to one hundred percent of the  total  amount  of  such  credits
available  each  year  to  all  local  distributors of electricity. Such
authorization for contribution in state fiscal years two  thousand  four
and  two  thousand  five  shall  be  equal to the total amount of credit
available in two thousand four and two thousand five; under  subdivision
nine of section one hundred eighty-six-a of the tax law under the fourth
phase  of  the  POWER  FOR JOBS program for the additional three hundred
megawatts provided under chapter sixty-three of the laws of two thousand
and under the fifth phase OF THE POWER FOR JOBS PROGRAM  for  the  addi-
tional  one  hundred  eighty-three  megawatts provided under chapter two
hundred twenty-six of the laws of two thousand two.  In  addition,  such
authorization  for  contribution [for any extension of any contract] for
allocations under the fourth phase of the POWER  FOR  JOBS  program  and
under the fifth phase of the POWER FOR JOBS program in each state fiscal
year  shall  be  equal  to  the  total amount of credit or reimbursement
available in state fiscal year two  thousand  four--two  thousand  five,
state  fiscal  year two thousand five--two thousand six and two thousand
six--two thousand seven. Additionally, notwithstanding any other section
of law, the authority is authorized to make a contribution in an  amount
related  to  total  amounts  of  credit  received under phases one, two,
three, four and five of the POWER FOR JOBS program. In no case shall the
contribution for state fiscal year two thousand five--two  thousand  six
be  less  than  seventy-five million dollars. The contribution for state
fiscal year two thousand six--two thousand seven shall  be  one  hundred
million  dollars.  The  contribution  for state fiscal year two thousand
seven--two thousand eight shall be thirty million dollars. The  contrib-
ution  for state fiscal year two thousand eight--two thousand nine shall
be twenty-five million dollars. The contribution for state  fiscal  year
two thousand nine--two thousand ten shall be twelve million five hundred
thousand  dollars.  The  department of public service shall estimate the
payment due by the end of the calendar  year  in  which  the  credit  is
available. In no case shall the amount of the total annual contributions
for  the  years  during which delivery and sale of power associated with
all power for jobs phases and any extensions thereof takes place  exceed
the aggregate total of four hundred sixty-one million five hundred thou-
sand dollars.

S. 7339                            12

  [3.]  2.  Other  authority  customers shall not incur any costs in the
implementation of the power for jobs [program] OR  ECONOMIC  DEVELOPMENT
POWER PROGRAMS.
  S  11. Paragraph h of the ninth undesignated paragraph of section 1005
of the public authorities law, as added by chapter 313 of  the  laws  of
2005, is amended to read as follows:
  h.  For  the purposes of paragraphs b and f of this ninth undesignated
paragraph, "authority sources" shall be  defined  as  power  and  energy
supplied by generating facilities of the authority in operation or under
construction  as  of  the effective date of this paragraph and power and
energy procured by competitive solicitation[; provided, however, that it
shall not include], INCLUDING, COMMENCING JULY FIRST, TWO THOUSAND ELEV-
EN, power from the  Niagara  and  Saint  Lawrence-FDR  power  projects[,
except  this  shall  not  preclude  the use of proceeds from the sale of
power from such projects for energy cost savings  benefits  as  provided
herein].
  S 12. The opening paragraph of subdivision 5 and paragraphs a and b of
subdivision  14 of section 1005 of the public authorities law, the open-
ing paragraph of subdivision 5 as amended by chapter 294 of the laws  of
1968,  paragraph  a  of  subdivision 14 as amended by chapter 313 of the
laws of 2005, paragraph b of subdivision 14 as amended by section  2  of
part  KK  of  chapter  63  of  the  laws of 2000, are amended to read as
follows:
  To develop, maintain, manage and operate those parts  of  the  Niagara
and  Saint  Lawrence hydroelectric projects owned or controlled by it in
such manner as to give effect to the policy  hereby  declared  (and  all
plans  and  acts,  and all contracts for the use, sale, transmission and
distribution of the power generated by such projects, shall be  made  in
the  light of, consistent with and subject to this policy), namely, that
such projects shall be in all respects for  the  aid,  improvement,  and
benefit  of  commerce  and  navigation  in,  through, along and past the
Niagara river, the Saint Lawrence river  and  the  international  rapids
section  thereof,  and  that  in the development of hydro-electric power
therefrom such projects shall be considered primarily as for the benefit
of the people of the state as a whole [and particularly the domestic and
rural consumers to whom the power can economically  be  made  available,
and  accordingly  that  sale to and use by industry shall be a secondary
purpose, to be utilized principally to secure a sufficiently  high  load
factor  and  revenue  returns  to  permit  domestic and rural use at the
lowest possible rates and in  such  manner  as  to  encourage  increased
domestic  and  rural  use of electricity]. In furtherance of this policy
and to secure a wider distribution of such power and use of the greatest
value to the general public of the state, the authority shall  in  addi-
tion  to  other methods which it may find advantageous make provision so
that municipalities and other political sub-divisions of the  state  now
or hereafter authorized by law to engage in the distribution of electric
power  may  secure  a  reasonable  share  of the power generated by such
projects, and shall sell the same or cause the same to be sold  to  such
municipalities and political subdivisions at prices representing cost of
generation,  plus  capital  and  operating  charges, plus a fair cost of
transmission, all as determined by the trustees[, and subject to  condi-
tions  which shall assure the resale of such power to domestic and rural
consumers at the lowest possible  price],  provided,  however,  that  in
disposing  of hydro-electric power pursuant to and in furtherance of the
aforementioned policy and purposes, appropriate provision  may  also  be
made to allocate a reasonable share of project power to agencies created

S. 7339                            13

or  designated  by  other  states  and authorized to resell the power to
users under the same terms and conditions as power is disposed of in New
York state. To that end, the authority may provide in  any  contract  or
contracts  which it may make for the sale, transmission and distribution
of the power  that  the  purchaser,  transmitter  or  distributor  shall
construct, maintain and operate, on such terms as the authority may deem
proper,  such  connecting  lines as may be necessary for transmission of
the power from main transmission lines to such municipalities  or  poli-
tical subdivisions.
  a.  To provide to the governor, to the speaker of the assembly, and to
the temporary president of the senate, on or before April first of  each
year,  an economic development report including projections for the next
succeeding twelve months of the amount of  economic  development  power,
expansion power, replacement power, preservation power, high load factor
power, municipal distribution agency power and power under the power for
jobs  AND  THE  ECONOMIC  DEVELOPMENT POWER programs which will be or is
expected to be available with a listing of  the  current  recipients  of
such  power,  and  data  on  the number and types of jobs resulting from
allocation of power under each such program. Such report  shall  include
the  amount of revenues collected and used in the previous calendar year
pursuant to the eighth unnumbered paragraph of this section. Such report
shall describe the process by which the authority obtained  lowest  cost
power  made  available  under the power for jobs PROGRAM, AND THEREAFTER
THE ECONOMIC DEVELOPMENT POWER program.  Such  report  shall  contain  a
record  of wholesale power supply bids provided to the authority under a
competitive procurement process and the price of power obtained  through
any  alternate methods. Such report shall state the reasons for choosing
each specific source of power under each of the foregoing power programs
and the price at which that power was available.
  b. To provide to the governor, to the speaker of the assembly, and  to
the  temporary  president of the senate on or before December first, two
thousand, a report on the power for jobs  PROGRAM,  AND  THEREAFTER  THE
ECONOMIC DEVELOPMENT POWER program. Such report shall include the amount
of  power  provided under the program, number of jobs created and number
of jobs retained as a result of allocations of power under the  program,
and  number  of  jobs per megawatt of power provided.  Such report shall
separately list such information for the state, businesses, small  busi-
nesses, not-for-profit corporations, and service territory of each local
distributor of electric service. Such report shall also include an eval-
uation  with regard to the need for continuation of economic development
programs, including the power  for  jobs  program,  AND  THEREAFTER  THE
ECONOMIC DEVELOPMENT POWER PROGRAM.
  S  13. Paragraph (b) of subdivision 1 of section 186-a of the tax law,
as amended by section 4 of part Y of chapter 63 of the laws of 2000,  is
amended to read as follows:
  (b)  a tax equal to (1) two and five-tenths percent on and after Janu-
ary first, two thousand through December thirty-first, two thousand, two
and forty-five one hundredths percent from January first,  two  thousand
one through December thirty-first, two thousand one, two and four-tenths
percent  from  January  first, two thousand two through December thirty-
first, two thousand two, two and twenty-five one hundredths percent from
January first, two thousand three  through  December  thirty-first,  two
thousand  three, two and one hundred twenty-five one thousandths percent
from January first, two thousand four through December thirty-first, two
thousand four and two percent commencing  January  first,  two  thousand
five and thereafter of that portion of its gross income derived from the

S. 7339                            14

transportation,  transmission  or distribution of gas or NON-RESIDENTIAL
electricity by means of conduits, mains, pipes, wires, lines or the like
and (2) two and one-tenth  percent  from  January  first,  two  thousand
through  December  thirty-first,  two thousand, two percent from January
first, two thousand one through December thirty-first, two thousand one,
one and nine-tenths percent from January first, two thousand two through
December thirty-first, two thousand two, eighty-five one  hundredths  of
one  percent  from  January  first,  two thousand three through December
thirty-first, two thousand three, four-tenths of one percent from  Janu-
ary first, two thousand four through December thirty-first, two thousand
four and zero percent commencing January first, two thousand five of all
of  its  other  gross  income,  is hereby imposed upon every utility not
taxed under paragraph (a) of this subdivision  doing  business  in  this
state  which  is  subject  to the supervision of the state department of
public service which has a gross income for  the  year  ending  December
thirty-first in excess of five hundred dollars, except motor carriers or
brokers subject to such supervision under the public service law; and
  S  14.  Subdivision  9  of section 186-a of the tax law, as amended by
chapter 217 of the laws of 2009, is amended to read as follows:
  9. Notwithstanding any other provision of this chapter  or  any  other
law  to  the contrary, for taxable periods nineteen hundred ninety-seven
through and including two thousand ten, AND THEREAFTER any utility which
delivers power under the power for jobs program OR, ANY UTILITY DELIVERS
POWER UNDER THE ECONOMIC DEVELOPMENT POWER PROGRAM COMMENCING THE  FIRST
OF  JULY,  TWO  THOUSAND  ELEVEN,  as established by section one hundred
eighty-nine of the economic development law, shall be allowed a  credit,
subject  to  the  limitations  thereon  contained  in  this subdivision,
against the tax imposed under this section equal to  net  lost  revenues
from the delivery of power under such [power for jobs program] PROGRAMS.
Net  lost  revenues  means the "net receipts" less "net utility revenue"
from such delivery of power. For  purposes  of  this  subdivision,  "net
receipts"  shall  mean  the amount that the utility would have otherwise
received from customers receiving power pursuant to allocations  by  the
New York state economic development power allocation board in accordance
with section one hundred eighty-nine of the economic development law, or
from  customers  whose  allocation  has  been  transferred  to an energy
service company, or from energy service companies to  which  such  allo-
cation  has  been  transferred, pursuant to its tariff supervised by the
public service commission for substantially comparable service otherwise
applicable to such customers or energy service companies in the  absence
of  such  designation,  less  the  utility's  annual average incremental
short-term variable and capacity costs of providing such  power  in  the
absence  of  such  purchase.  For the purposes of this subdivision, "net
utility revenue" shall mean the revenues the utility  actually  receives
in  accordance  with  such  section  one  hundred  eighty-nine from such
customers so designated by the New York state economic development power
allocation board or from customers whose allocation has been transferred
to an energy service company, or from the energy  service  companies  to
which  a power for jobs OR ECONOMIC DEVELOPMENT POWER PROGRAM allocation
has been transferred, less the utility's cost of such power  under  such
[program]  PROGRAMS.  Provided,  however,  that  any  credit  under this
section shall be used only with respect to the same taxable year  during
which  such  credit  arose  and  shall  not  be capable of being carried
forward or backward to any other taxable period. Nor shall any credit be
allowed to any utility for the total amount of power, expressed in kilo-
watt hours, purchased by  the  customers  of  such  utility  under  such

S. 7339                            15

program  during  the  taxable period that exceeds the prorated "baseline
energy use" by all customers of that utility purchasing power under such
[program] PROGRAMS during the taxable period.    "Baseline  energy  use"
with  respect to each customer shall mean the largest amount of kilowatt
hours of energy used by such  customer  during  any  twelve  consecutive
month  period  occurring  during the preceding thirty months immediately
preceding the New  York  state  economic  development  power  allocation
board's  recommendation  of  such  customer's  application,  prorated to
reflect the length of time  of  the  customer's  participation  in  such
[program] PROGRAMS during the taxable period. Provided further, however,
that  in  accordance with subdivision (k) of section one hundred eighty-
nine of the economic development law no tax credit  shall  be  available
for  any  revenue  losses  when a utility has declined to purchase power
allocated for sale under such [program] PROGRAMS.   No  electric  corpo-
ration  shall  be  allowed the tax credit authorized by this subdivision
until it shall file a certificate from the department of public  service
for  the  period covered by the return verifying that the calculation of
such tax credit complies with this subdivision  and  the  department  of
public  service  has  approved  such certificate and forwarded a copy of
such approved certificate to the commissioner or any amended certificate
resulting from the need for  correction.  The  credit  allowed  by  this
subdivision shall not be applicable in calculating any other tax imposed
or  authorized  to  be imposed by this chapter or any other law, and the
amount of the tax surcharge imposed under section  one  hundred  eighty-
six-c  of  this article shall be calculated and payable as if the credit
provided for by this subdivision were not allowed.
  S 15. Subdivision 6 of section 18-a of  the  public  service  law,  as
added  by  section  4  of  part NN of chapter 59 of the laws of 2009, is
amended to read as follows:
  6. (a) Notwithstanding any provision  of  law  to  the  contrary,  and
subject to the exceptions provided for in paragraph (b) of this subdivi-
sion,  for  the state fiscal year beginning on April first, two thousand
nine and four state fiscal years thereafter, a temporary annual  assess-
ment  (hereinafter "temporary state energy and utility service conserva-
tion assessment") is hereby imposed on public utility companies (includ-
ing for the purposes  of  this  subdivision  municipalities  other  than
municipalities  as  defined  in  section eighty-nine-l of this chapter),
corporations (including for purposes of this subdivision the Long Island
power authority), and persons subject  to  the  commission's  regulation
(hereinafter  such  public  utility companies, corporations, and persons
are referred to collectively as the "utility entities") to encourage the
conservation of energy and  other  resources  provided  through  utility
entities,  to  be  assessed  in the manner provided in this subdivision;
provided, however, that such assessment shall not be imposed upon  tele-
phone corporations as defined in subdivision seventeen of section two of
this article.
  (b)  The  temporary  state  energy  and  utility  service conservation
assessment shall be equal to two percentum of the utility entity's gross
operating revenues  derived  from  intrastate  utility  operations  WITH
RESPECT  TO  NON-RESIDENTIAL  CUSTOMERS  in  the last preceding calendar
year, minus the amount, if any, that such  utility  entity  is  assessed
pursuant to subdivisions one and two of this section for the correspond-
ing  state  fiscal  year  period.  With respect to the Long Island power
authority, the temporary state energy and utility  service  conservation
assessment  shall  be  equal  to one percentum of such authority's gross
operating revenues FROM NON-RESIDENTIAL CUSTOMERS  derived  from  intra-

S. 7339                            16

state  utility operations in the last preceding calendar year. No corpo-
ration or person subject to the jurisdiction of the commission only with
respect to safety, or the power authority of  the  state  of  New  York,
shall  be  subject  to  the  temporary  state energy and utility service
conservation assessment provided for  under  this  subdivision.  Utility
entities  whose  gross  operating revenues from intrastate utility oper-
ations WITH RESPECT TO NON-RESIDENTIAL CUSTOMERS are five hundred  thou-
sand dollars or less in the preceding calendar year shall not be subject
to  the  temporary state energy and utility service conservation assess-
ment. The minimum temporary state energy and utility  service  conserva-
tion  assessment to be billed to any utility entity whose gross revenues
FROM NON-RESIDENTIAL CUSTOMERS from intrastate utility operations are in
excess of five hundred thousand dollars in the preceding  calendar  year
shall be two hundred dollars.
  (c) The chairman of the department shall determine, prior to the start
of  each state fiscal year, the amount of the temporary state energy and
utility service conservation assessment for  utility  entities  for  the
fiscal  year.  Based on that determination, a bill shall be rendered for
each utility entity on or before February  first  preceding  each  state
fiscal  year for the amount as set forth in paragraph (b) of this subdi-
vision.
  (d) Each utility entity must pay the bill rendered to it  pursuant  to
paragraph (c) of this subdivision as follows:
  (i)  The  amount  of  such  bill  shall be paid by such public utility
company to the department on or before April first;  provided,  however,
that a utility company may elect to make partial payments for such costs
and  expenses on March tenth of the preceding fiscal year and on Septem-
ber tenth of such fiscal year. Each such partial payment shall be a  sum
equal  to  fifty  percentum  of the estimate of costs and expenses to be
assessed against such utility  company  under  the  provisions  of  this
subdivision and shall not be less than two hundred dollars.
  (ii)  During  the  course  of  any state fiscal year, the chairman may
adjust the amount of the bills as appropriate to  reflect,  among  other
things,  the actual reported revenues. In such case, revised bills shall
be sent to each utility entity subject to the provisions of this  subdi-
vision,  and  such  increase  or  decrease  shall be equally apportioned
against the remaining payments for such fiscal year;
  (e) For the purposes of calculating the commodity  cost  component  of
its  gross operating revenue, where the utility delivers to end-use NON-
RESIDENTIAL customers electricity and/or natural  gas  commodities  that
are  sold to such customers by a third party, such utility shall include
in its revenues an estimate of the sales revenue for the electric and/or
natural gas commodities that it delivers, including all such commodities
sold to end-use customers by third parties, in such manner as to  assure
that all end-use delivery customers, regardless of the entity from which
they purchase their electric and/or natural gas commodities, bear a fair
and proportionate share of the assessment imposed herein, as the commis-
sion may determine.
  (f)  Notwithstanding  any provision of law to the contrary, all tempo-
rary state energy and utility  service  conservation  assessment  monies
collected and received by the department shall be deposited to the cred-
it  of  the  comptroller  with such responsible banks, banking houses or
trust companies as may be designated by the comptroller.  Such  deposits
shall be kept separate and apart from all other monies in the possession
of the comptroller. The comptroller shall require adequate security from
all  such  depositories.  Of the total amount collected, the comptroller

S. 7339                            17

shall retain the amount determined by the chairman to be  necessary  for
refund of overpayments out of which the comptroller must pay any refunds
to  which  a utility entity may be entitled pursuant to paragraph (g) of
this  subdivision.  After reserving the amount to pay refunds, the comp-
troller shall, on or before  the  tenth  day  of  each  month,  or  more
frequently  as  he  or she may deem appropriate, pay all temporary state
energy and utility service conservation assessment monies collected  and
received under this subdivision and remaining to the comptroller's cred-
it into the state general fund.
  (g)  On or before October tenth of each year, the chairman may compute
adjustments or other corrections  as  needed  for  the  preceding  state
fiscal  year  and,  shall,  on or before October twentieth, send to each
utility entity affected thereby, a statement setting  forth  the  amount
due and payable by, or the amount standing to the credit of, such utili-
ty  entity.  Any  amount  owing  by any utility entity shall be paid not
later than thirty days following the date such  statement  is  received.
Any  such  amount  standing to the credit of any utility entity shall be
refunded by the chairman.
  (h) The chairman is authorized to  coordinate  the  implementation  of
this  subdivision with the other subdivisions of this section, including
for purposes of, but not limited  to,  billing  and  collection  of  the
assessments provided for under this section.
  (I)  NO  PUBLIC UTILITY COMPANY OR OTHER UTILITY ENTITY SUBJECT TO THE
PROVISIONS OF THIS SECTION SHALL CHARGE OR  PASS  ALONG  THE  AMOUNT  OF
ASSESSMENT  IMPOSED  UNDER  THIS  SECTION TO ANY RESIDENTIAL CUSTOMER IN
THIS STATE.
  S 16. Section 9 of chapter 316 of the laws of 1997 amending the public
authorities law and other laws relating to the  provision  of  low  cost
power  to  foster  statewide economic development, as amended by chapter
217 of the laws of 2009, is amended to read as follows:
  S 9. This act shall take effect immediately [and shall expire  and  be
deemed repealed May 15, 2010].
  S  17.  The  power  authority of the state of New York shall within 60
days of the effective date of this act issue a request for 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  mega-
watts each, owned by the authority in and around the City of New York.
  Facilities  included  are:  Two  Units  at the Harlem River Yard plant
located at E. 132nd St. Bronx, N.Y. 10454; Two Units at Vernon Boulevard
located at 41-98, 44-02, 42-16 Vernon Boulevard  in  Long  Island  City,
Queens,  N.Y.  11101; Two Units at the Hell Gate Plant located at Locust
Avenue, E. 132nd St. to E. 134th St. Bronx, N.Y. 10454; Two Units at the
Windsor Terrace Power plant located at 3rd Avenue and 23rd St. Brooklyn,
N.Y. 11211; One Unit at Pouch Terminal located at 1 Edgewater St. Staten
Island, New York 11211; and One Unit at North First Avenue and River St.
located at 47-79 River St. Brooklyn, N.Y.  11211.
  The authority shall within 30 days of  the  end  of  the  solicitation
period report on the solicited bids to the Governor, the temporary pres-
ident of the senate, the speaker of the assembly, the minority leader of
the senate, the minority leader of the assembly, the energy and telecom-
munications  chair  of  the senate and the energy chair of the assembly.
The authority shall then commence actions to effectuate the sale of such
facilities.
  Such proceeds as are realized from these sales, shall be  used  solely
for two purposes:

S. 7339                            18

  (1) To pay for the residential abatement from the fee assessment under
section 18-a of the public service law as provided in this act; and
  (2)  If  any  additional funds exist they shall be placed into a dedi-
cated fund, administered by the empire  state  development  corporation.
The purpose of this fund will be to spur additional economic development
in  upstate  New  York.  The  empire state development corporation shall
study the issue and develop guidelines and  policies  for  its  adminis-
tration  and  shall  provide  a  detailed  report  and accounting of any
disbursements made, including the recipient and rationale, to the Gover-
nor, the temporary president of the senate, the speaker of the assembly,
the minority leader of the senate, the minority leader of the  assembly,
the  energy  and  telecommunications  chair of the senate and the energy
chair of the assembly, the  commerce,  economic  development  and  small
business  chair in the senate and the economic development, commerce and
industry chair in the assembly. Such report shall be made  available  by
February first of each and every successive year, as applicable.
  No  portion  of  the proceeds from the sale of the enumerated New York
state power authority assets shall be used  for  general  fund  expenses
under any circumstances.
  S  18. Severability clause. If any clause, sentence, paragraph, subdi-
vision, section or part of this act shall be adjudged by  any  court  of
competent  jurisdiction  to  be invalid, such judgment shall not affect,
impair, or invalidate the remainder thereof, but shall  be  confined  in
its  operation  to the clause, sentence, paragraph, subdivision, section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the legislature that this act would  have  been  enacted  even  if  such
invalid provisions had not been included therewith.
  S 19. This act shall take effect immediately; provided that:
  (a)  sections  one  through  six and eight through fifteen of this act
shall take effect July 1, 2011;
  (b) section seven of this act shall take effect June 30, 2011; and
  (c) the amendments to subdivision six of section 18-a  of  the  public
service  law  made  by  section fifteen of this act shall not affect the
expiration of such subdivision and shall be deemed to expire therewith.