Senate Bill S7937

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

                                 7937--A

                            I N  S E N A T E

                              May 25, 2010
                               ___________

Introduced by Sens. AUBERTINE, MAZIARZ, BRESLIN, FOLEY, GRIFFO, C. JOHN-
  SON, VALESKY -- read twice and ordered printed, and when printed to be
  committed to the Committee on Energy and Telecommunications -- commit-
  tee  discharged, bill amended, ordered reprinted as amended and recom-
  mitted to said committee

AN ACT to amend the economic development law and the public  authorities
  law,  in  relation  to  the  creation  of  the energize New York power
  program; and to amend the economic development law, the public author-
  ities law, the tax law, 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, and chapter 645
  of the laws of 2006 amending the economic development  law  and  other
  laws  relating  to  reauthorizing the New York power authority to make
  contributions to the general fund, in relation to extending the  expi-
  ration of the power for jobs program and the energy cost savings bene-
  fit  program;  and  to  repeal  subdivision  16 of section 1005 of the
  public authorities law relating to energy audits

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

  Section  1.  Short  title. This act shall be known and may be cited as
the "energize New York power program act."
  S 2. The economic development law is amended by adding a  new  section
188-a to read as follows:
  S  188-A.  ENERGIZE  NEW YORK POWER PROGRAM.  (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.
  (3) "ENERGIZE NEW YORK POWER ALLOCATION" OR "ALLOCATION" SHALL MEAN AN
ALLOCATION  OF  ENERGIZE  NEW  YORK  POWER BY THE POWER AUTHORITY OF THE
STATE OF NEW YORK PURSUANT TO SECTION ONE THOUSAND FIVE  OF  THE  PUBLIC
AUTHORITIES  LAW  TO  AN  ELIGIBLE APPLICANT RECOMMENDED BY THE NEW YORK

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

                                                           LBD12208-06-0

S. 7937--A                          2

STATE ECONOMIC DEVELOPMENT POWER ALLOCATION  BOARD  IN  ACCORDANCE  WITH
THIS SECTION.
  (4)  "ELIGIBLE  APPLICANT"  SHALL  MEAN AN ELIGIBLE BUSINESS, ELIGIBLE
SMALL BUSINESS, OR ELIGIBLE NOT-FOR-PROFIT  CORPORATION  AS  DEFINED  IN
THIS  SECTION,  PROVIDED  HOWEVER,  THAT AN ELIGIBLE APPLICANT SHALL NOT
INCLUDE RETAIL BUSINESSES AS DEFINED BY THE  BOARD,  INCLUDING,  WITHOUT
LIMITATION,  SPORTS  VENUES,  GAMING OR ENTERTAINMENT-RELATED ESTABLISH-
MENTS OR PLACES OF OVERNIGHT ACCOMMODATION.
  (5)  "ELIGIBLE  BUSINESS"  SHALL  MEAN  A  BUSINESS   OTHER   THAN   A
NOT-FOR-PROFIT  CORPORATION WHICH NORMALLY UTILIZES A MINIMUM PEAK ELEC-
TRIC DEMAND IN EXCESS OF FOUR HUNDRED KILOWATTS.
  (6) "ELIGIBLE NOT-FOR-PROFIT CORPORATION"  SHALL  MEAN  A  CORPORATION
DEFINED   IN  SUBDIVISION  FIVE  OF  SECTION  ONE  HUNDRED  TWO  OF  THE
NOT-FOR-PROFIT CORPORATION LAW.
  (7) "ELIGIBLE SMALL BUSINESS" SHALL MEAN A BUSINESS OTHER THAN A  NOT-
FOR-PROFIT  CORPORATION  WHICH NORMALLY UTILIZES A MINIMUM PEAK ELECTRIC
DEMAND EQUAL TO OR LESS THAN FOUR HUNDRED KILOWATTS.
  (8) "ENERGIZE NEW YORK POWER" SHALL MEAN AND CONSIST OF EQUAL  AMOUNTS
OF  (I)  UP  TO  FOUR HUNDRED FIFTY-FIVE MEGAWATTS OF FIRM HYDROELECTRIC
POWER FROM THE NIAGARA AND SAINT LAWRENCE HYDROELECTRIC PROJECTS  TO  BE
WITHDRAWN  AS  OF JUNE FIRST, TWO THOUSAND TEN FROM UTILITY CORPORATIONS
THAT, AS OF MAY THIRTY-FIRST, TWO THOUSAND TEN, PURCHASED SUCH POWER FOR
THE BENEFIT OF THEIR DOMESTIC AND RURAL CONSUMERS  ("ENERGIZE  NEW  YORK
HYDROPOWER"), AND (II) POWER PROCURED BY THE AUTHORITY THROUGH A COMPET-
ITIVE PROCUREMENT PROCESS, AUTHORITY SOURCES (OTHER THAN THE NIAGARA AND
SAINT  LAWRENCE  PROJECTS) OR THROUGH AN ALTERNATE METHOD ("ENERGIZE NEW
YORK MARKET POWER").
  (B) APPLICATIONS FOR ENERGIZE NEW YORK POWER  ALLOCATIONS.    (1)  THE
BOARD  MAY  SOLICIT APPLICATIONS FOR ENERGIZE NEW YORK POWER ALLOCATIONS
UNDER THE PROGRAM CREATED BY THIS SECTION BY PUBLIC NOTICE BEGINNING  NO
LATER  THAN  JANUARY  THIRTY-FIRST, TWO THOUSAND ELEVEN. SUCH NOTICE MAY
INCLUDE NEWSPAPER  ADVERTISEMENTS,  PRESS  RELEASES,  WEBSITE  POSTINGS,
PAPER  OR  ELECTRONIC  MAILING,  AND/OR SUCH OTHER FORM OF NOTICE AS THE
BOARD FINDS APPROPRIATE IN CONSULTATION WITH THE AUTHORITY.
  (2) APPLICATIONS FOR ENERGIZE NEW YORK POWER ALLOCATIONS SHALL  BE  IN
THE  FORM  AND CONTAIN SUCH INFORMATION, EXHIBITS AND SUPPORTING DATA AS
THE BOARD PRESCRIBES IN CONSULTATION WITH THE AUTHORITY. A COPY OF  EACH
APPLICATION  RECEIVED  SHALL  BE MADE AVAILABLE FOR REVIEW BY EACH BOARD
MEMBER, AND A COPY SHALL BE PROVIDED TO THE AUTHORITY.
  (3) AN APPLICANT WHO IS ALSO A RECIPIENT  OF  BENEFITS  UNDER  ANOTHER
POWER  PROGRAM  OF THE AUTHORITY SHALL BE ELIGIBLE TO APPLY FOR AN ALLO-
CATION UNDER THE ENERGIZE NEW YORK  POWER  PROGRAM  ONLY  IF  IT  IS  IN
SUBSTANTIAL   COMPLIANCE   WITH  ITS  CONTRACTUAL  COMMITMENTS  MADE  IN
CONNECTION WITH SUCH OTHER PROGRAM, PROVIDED HOWEVER THAT  AN  APPLICANT
SHALL  NOT  RECEIVE  AN ENERGIZE NEW YORK POWER ALLOCATION AND ANY OTHER
AUTHORITY POWER PROGRAM BENEFITS WITH RESPECT TO THE  SAME  QUANTITY  OF
ELECTRICITY CONSUMED AT A FACILITY.
  (4)  SUBJECT  TO  CONFIDENTIALITY  REQUIREMENTS,  UPON RECEIPT OF EACH
APPLICATION FROM THE BOARD, THE AUTHORITY SHALL PROMPTLY NOTIFY BY ELEC-
TRONIC MEANS, INCLUDING WEBSITE POSTINGS  AND  SUCH  OTHER  METHODS  THE
BOARD  DEEMS  APPROPRIATE IN CONSULTATION WITH THE AUTHORITY, THE GOVER-
NOR, THE SPEAKER OF THE ASSEMBLY, THE MINORITY LEADER OF  THE  ASSEMBLY,
THE  TEMPORARY  PRESIDENT  OF  THE  SENATE,  THE  MINORITY LEADER OF THE
SENATE, AND EACH MEMBER OF THE STATE LEGISLATURE IN WHOSE  DISTRICT  ANY
PORTION OF THE FACILITY FOR WHICH AN ALLOCATION IS REQUESTED IS LOCATED.
SUCH  NOTICE  SHALL PROVIDE THE NAME AND A DESCRIPTION OF THE APPLICANT,

S. 7937--A                          3

AND THE ADDRESS OF THE FACILITY FOR WHICH THE ALLOCATION  IS  REQUESTED.
THE AUTHORITY SHALL ALSO DEVELOP A LISTING WHICH CONTAINS THE NAME AND A
DESCRIPTION OF EACH APPLICANT, THE ENERGIZE NEW YORK POWER PROGRAM ALLO-
CATION  SOUGHT  BY  EACH  APPLICANT, AND THE ADDRESS OF THE FACILITY FOR
WHICH THE APPLICANT REQUESTS THE ALLOCATION, AND SHALL MAKE THE  LISTING
AVAILABLE FOR PUBLIC REVIEW ON THE AUTHORITY'S WEBSITE.
  (C)  REVIEW,  APPLICABLE  CRITERIA AND RECOMMENDATIONS.  (1) THE BOARD
SHALL REVIEW APPLICATIONS SUBMITTED UNDER THE ENERGIZE  NEW  YORK  POWER
PROGRAM.  THE  BOARD  SHALL MAKE AN INITIAL DETERMINATION OF WHETHER THE
APPLICANT IS AN ELIGIBLE APPLICANT. IN THE CASE OF  AN  ELIGIBLE  APPLI-
CANT,  THE  BOARD  MAY  RECOMMEND TO THE AUTHORITY THAT AN ALLOCATION OF
ENERGIZE NEW YORK POWER BE  AWARDED  TO  AN  APPLICANT  FOR  A  FACILITY
LOCATED IN THE STATE OF NEW YORK BASED ON CONSIDERATION OF THE FOLLOWING
CRITERIA  WHICH SHALL BE CONSIDERED IN THE AGGREGATE AND NO ONE OF WHICH
SHALL BE PRESUMPTIVELY DETERMINATIVE:
  (I) THE SIGNIFICANCE OF THE COST OF  ELECTRICITY  TO  THE  APPLICANT'S
OVERALL COST OF DOING BUSINESS, AND THE IMPACT THAT AN ENERGIZE NEW YORK
POWER ALLOCATION WILL HAVE ON THE APPLICANT'S OPERATING COSTS;
  (II)  THE  EXTENT  TO WHICH AN ENERGIZE NEW YORK POWER ALLOCATION WILL
RESULT IN NEW CAPITAL INVESTMENT IN THE STATE BY THE APPLICANT;
  (III) THE EXTENT TO WHICH AN ENERGIZE NEW  YORK  POWER  ALLOCATION  IS
CONSISTENT  WITH  STATE, REGIONAL AND LOCAL ECONOMIC DEVELOPMENT STRATE-
GIES AND PRIORITIES;
  (IV) THE TYPE AND COST OF BUILDINGS, EQUIPMENT AND  FACILITIES  TO  BE
CONSTRUCTED,  ENLARGED  OR INSTALLED IF THE APPLICANT WERE TO RECEIVE AN
ALLOCATION;
  (V) THE APPLICANT'S PAYROLL, SALARIES, BENEFITS AND NUMBER OF JOBS  AT
THE  FACILITY  FOR  WHICH  AN  ENERGIZE  NEW  YORK  POWER  ALLOCATION IS
REQUESTED;
  (VI) THE NUMBER OF JOBS THAT WILL BE CREATED OR  RETAINED  WITHIN  THE
STATE  IN  RELATION TO THE REQUESTED ENERGIZE NEW YORK POWER ALLOCATION,
AND THE EXTENT TO WHICH THE APPLICANT WILL AGREE TO COMMIT  TO  CREATING
OR  RETAINING SUCH JOBS AS A CONDITION TO RECEIVING AN ENERGIZE NEW YORK
POWER ALLOCATION;
  (VII) WHETHER THE APPLICANT, DUE TO THE COST  OF  ELECTRICITY,  IS  AT
RISK  OF  CLOSING  OR  CURTAILING FACILITIES OR OPERATIONS IN THE STATE,
RELOCATING FACILITIES OR OPERATIONS  OUT  OF  THE  STATE,  OR  LOSING  A
SIGNIFICANT  NUMBER  OF JOBS IN THE STATE, IN THE ABSENCE OF AN ENERGIZE
NEW YORK POWER ALLOCATION;
  (VIII) THE SIGNIFICANCE OF THE APPLICANT'S FACILITY THAT WOULD RECEIVE
THE ENERGIZE NEW YORK POWER ALLOCATION TO THE ECONOMY  OF  THE  AREA  IN
WHICH SUCH FACILITY IS LOCATED;
  (IX)  THE  EXTENT  TO WHICH THE APPLICANT HAS INVESTED IN ENERGY EFFI-
CIENCY MEASURES, WILL AGREE TO PARTICIPATE IN OR PERFORM  ENERGY  AUDITS
OF  ITS  FACILITIES,  WILL  AGREE  TO  PARTICIPATE  IN ENERGY EFFICIENCY
PROGRAMS OF THE AUTHORITY, OR WILL COMMIT TO IMPLEMENT OR OTHERWISE MAKE
TANGIBLE INVESTMENTS IN ENERGY EFFICIENCY MEASURES  AS  A  CONDITION  TO
RECEIVING AN ENERGIZE NEW YORK POWER ALLOCATION;
  (X) THE EXTENT TO WHICH THE APPLICANT'S OPERATIONS ARE CONSISTENT WITH
THE POLICIES AND GOALS OF THE STATE ENERGY PLAN;
  (XI) WHETHER THE APPLICANT RECEIVES BENEFITS UNDER ANY OTHER POWER-RE-
LATED PROGRAMS OF THE AUTHORITY;
  (XII)  THE  EXTENT TO WHICH AN ENERGIZE NEW YORK POWER ALLOCATION WILL
RESULT IN AN ADVANTAGE FOR AN APPLICANT IN RELATION TO  THE  APPLICANT'S
COMPETITORS WITHIN THE STATE; AND

S. 7937--A                          4

  (XIII)  IN  ADDITION  TO  THE  FOREGOING  CRITERIA,  IN  THE CASE OF A
NOT-FOR-PROFIT CORPORATION,  WHETHER  THE  APPLICANT  PROVIDES  CRITICAL
SERVICES  OR  SUBSTANTIAL  BENEFITS  TO THE LOCAL COMMUNITY IN WHICH THE
FACILITY FOR WHICH THE ALLOCATION IS REQUESTED IS LOCATED.
  (2)  A RECOMMENDATION BY THE BOARD THAT THE AUTHORITY PROVIDE AN ENER-
GIZE NEW YORK POWER ALLOCATION TO AN ELIGIBLE APPLICANT  SHALL  INCLUDE,
BUT NEED NOT BE LIMITED TO:
  (I) THE AMOUNT OF THE ENERGIZE NEW YORK POWER ALLOCATION THE BOARD HAS
DETERMINED SHOULD BE AWARDED TO SUCH ELIGIBLE APPLICANT, PROVIDED HOWEV-
ER,  THAT  THE BOARD MAY RECOMMEND AN ENERGIZE NEW YORK POWER ALLOCATION
IN AN AMOUNT THAT IS LESS THAN THE AMOUNT REQUESTED BY SUCH APPLICANT;
  (II) AN EFFECTIVE INITIAL TERM OF THE ALLOCATION AND CONTRACT  BETWEEN
THE  ELIGIBLE  APPLICANT  AND THE AUTHORITY WHICH SHALL NOT EXCEED SEVEN
YEARS, PROVIDED HOWEVER  THAT  THE  TERM  OF  ANY  SUCH  ALLOCATION  AND
CONTRACT  SHALL  NOT  BECOME  EFFECTIVE  BEFORE JULY FIRST, TWO THOUSAND
ELEVEN; AND
  (III) PROVISIONS FOR EFFECTIVE PERIODIC AUDITS OF ELIGIBLE  APPLICANTS
AWARDED  AN ENERGIZE NEW YORK POWER ALLOCATION FOR THE PURPOSE OF DETER-
MINING CONTRACT AND PROGRAM COMPLIANCE, AND FOR THE PARTIAL OR  COMPLETE
WITHDRAWAL  OF  AN  ENERGIZE  NEW  YORK POWER ALLOCATION IF THE ELIGIBLE
APPLICANT FAILS TO MAINTAIN MUTUALLY AGREED UPON  COMMITMENTS,  RELATING
TO,  AMONG  OTHER  THINGS, EMPLOYMENT LEVELS, POWER UTILIZATION, CAPITAL
INVESTMENTS, AND/OR ENERGY EFFICIENCY MEASURES.
  (3) THE BOARD'S  RECOMMENDATION  SHALL  REQUIRE  THAT  IF  THE  ACTUAL
METERED  LOAD  AT  THE FACILITY WHERE THE ALLOCATION IS UTILIZED IS LESS
THAN THE  ALLOCATION,  SUCH  ALLOCATION  WILL  BE  REDUCED  ACCORDINGLY,
PROVIDED THAT, UNDER THEIR CONTRACTS WITH THE AUTHORITY, ELIGIBLE APPLI-
CANTS  SHALL  BE  AFFORDED  A  REASONABLE  PERIOD  WITHIN WHICH TO FULLY
UTILIZE THE ALLOCATIONS, TAKING INTO ACCOUNT CONSTRUCTION SCHEDULES  AND
ECONOMIC  CONDITIONS.  THE  AUTHORITY  SHALL REALLOCATE ANY WITHDRAWN OR
RELINQUISHED POWER FOR THE ENERGIZE NEW YORK  POWER  PROGRAM  CONSISTENT
WITH PARAGRAPH FOUR OF THIS SUBDIVISION.
  (4) THE BOARD MAY BASE ITS RECOMMENDATION ON WHICH ELIGIBLE APPLICANTS
IT DETERMINES BEST MEET THE APPLICABLE CRITERIA; PROVIDED, HOWEVER, THAT
THE  BOARD  SHALL  DEDICATE  ENERGIZE  NEW YORK POWER AS FOLLOWS: (I) AT
LEAST THREE HUNDRED TWENTY MEGAWATTS FOR USE AT FACILITIES LOCATED WITH-
IN THE SERVICE TERRITORIES OF THE UTILITY CORPORATIONS THAT, AS  OF  MAY
THIRTY-FIRST,  TWO  THOUSAND  TEN,  PURCHASED NIAGARA AND SAINT LAWRENCE
HYDROELECTRIC POWER FOR THE BENEFIT OF THEIR DOMESTIC AND RURAL  CONSUM-
ERS;  (II) AT LEAST TWO HUNDRED MEGAWATTS FOR THE PURPOSES OF ATTRACTING
NEW BUSINESS TO THE STATE AND ENCOURAGING THE CREATION OF  NEW  BUSINESS
WITHIN  THE  STATE, FOR ELIGIBLE APPLICANTS THAT WILL COMMIT TO MAKE NEW
CAPITAL INVESTMENTS OR CREATE NEW JOBS WITHIN THE STATE;  AND  (III)  AN
AMOUNT NOT TO EXCEED ONE HUNDRED MEGAWATTS FOR ELIGIBLE SMALL BUSINESSES
AND ELIGIBLE NOT-FOR-PROFIT CORPORATIONS.
  (5)  THE  BOARD  SHALL  ISSUE  A WRITTEN STATEMENT OF ITS FINDINGS AND
CONCLUSIONS WITH RESPECT TO EVERY APPLICATION AND THE  REASONS  FOR  ITS
RECOMMENDATION TO THE AUTHORITY.
  (6)  A  RECOMMENDATION FOR AN ENERGIZE NEW YORK POWER ALLOCATION SHALL
QUALIFY AN APPLICANT TO ENTER INTO A CONTRACT WITH THE AUTHORITY  PURSU-
ANT  TO  THE TERMS AND CONDITIONS OF THE RECOMMENDATION BY THE BOARD AND
ON SUCH OTHER TERMS AS THE AUTHORITY DETERMINES TO BE APPROPRIATE.
  (7) THE BOARD SHALL NOT RECOMMEND A TOTAL OF ENERGIZE NEW  YORK  POWER
ALLOCATIONS IN EXCESS OF NINE HUNDRED TEN MEGAWATTS.
  (D)  THE  AUTHORITY  SHALL  WORK  COOPERATIVELY WITH THE DEPARTMENT OF
PUBLIC SERVICE TO RECOMMEND TO THE  PUBLIC  SERVICE  COMMISSION  REDUCED

S. 7937--A                          5

RATES  OR  AN  EQUIVALENT  MECHANISM  FOR THE DELIVERY BY UTILITY CORPO-
RATIONS OF ENERGIZE NEW YORK POWER PROGRAM ALLOCATIONS. ANY SUCH  RECOM-
MENDATION  FOR REDUCED DELIVERY RATES SHALL BE AT SUCH LEVEL AS TO ALLOW
THE  UTILITY  TO  (I) RECOVER THE INCREMENTAL COST OF PROVIDING DELIVERY
SERVICE TO SUCH CUSTOMERS, AND (II) CONTRIBUTE TO  THE  COMMON  DELIVERY
AND RELATED COSTS WHICH OTHERWISE WOULD BE BORNE BY OTHER CUSTOMERS.
  (E)  THE  AUTHORITY SHALL, AT A MINIMUM, REPORT QUARTERLY TO THE BOARD
ON THE AVAILABILITY OF  ENERGIZE  NEW  YORK  POWER  FOR  THE  SUBSEQUENT
TWELVE-MONTH  PERIOD, THE AMOUNT OF SUCH POWER ALLOCATED AND OTHER RELE-
VANT INFORMATION.
  (F) AFTER AN AWARD OF AN ENERGIZE NEW YORK POWER ALLOCATION, THE BOARD
SHALL ACCEPT REQUESTS FROM ELIGIBLE APPLICANTS WHO  ARE  IN  SUBSTANTIAL
COMPLIANCE  WITH  CONTRACTUAL  COMMITMENTS  MADE  IN CONNECTION WITH THE
ENERGIZE NEW YORK POWER PROGRAM FOR AN EXTENSION OF  AN  EXISTING  ALLO-
CATION (I) DURING THE TWENTY-FOUR MONTH PERIOD IMMEDIATELY PRECEDING THE
EXPIRATION  OF  THE TERM OF THE ALLOCATION, OR (II) AT SUCH EARLIER TIME
WITH THE CONSENT OF THE AUTHORITY IN WRITING.  REQUESTS  FOR  EXTENSIONS
SHALL  BE  REVIEWED  USING  THE  CRITERIA  SET FORTH IN PARAGRAPH ONE OF
SUBDIVISION (C) OF THIS SECTION.
  (G) TRANSFERS OF ENERGIZE NEW YORK POWER.  NOTWITHSTANDING  ANY  OTHER
APPROVAL REQUIRED BY STATUTE, REGULATION OR CONTRACT, THE TRANSFER OF AN
ENERGIZE  NEW  YORK  POWER  ALLOCATION  TO  A  DIFFERENT RECIPIENT, TO A
DIFFERENT OWNER OR OPERATOR OF A FACILITY, OR TO A DIFFERENT FACILITY IS
PROHIBITED UNLESS SPECIFICALLY APPROVED BY THE BOARD AS CONSISTENT  WITH
THE  CRITERIA AND REQUIREMENTS OF THIS SECTION. ANY TRANSFER THAT OCCURS
WITHOUT THE BOARD'S APPROVAL SHALL BE  INVALID  AND  SUCH  TRANSFER  MAY
SUBJECT  THE  RECIPIENT  TO REVOCATION OR MODIFICATION OF ITS ALLOCATION
AND CONTRACT.
  (H) (1) THE BOARD, IN CONSULTATION WITH THE AUTHORITY, SHALL SUBMIT TO
THE GOVERNOR, TEMPORARY PRESIDENT OF THE SENATE, SPEAKER OF  THE  ASSEM-
BLY,  MINORITY  LEADER OF THE SENATE AND MINORITY LEADER OF THE ASSEMBLY
AN EVALUATION OF THE  EFFECTIVENESS  OF  THE  ENERGIZE  NEW  YORK  POWER
PROGRAM.    SUCH  EVALUATION  SHALL  FOCUS  ON HOW THE PROGRAM HAS AIDED
RECIPIENTS OF POWER ALLOCATIONS, AND MAY INCLUDE RECOMMENDATIONS FOR HOW
THE PROGRAM CAN BE MADE MORE EFFECTIVE, AND SHALL BE BASED, IN PART,  ON
THE  RELATIVE COSTS OF POWER FOR RECIPIENTS IN COMPARISON TO THE COST OF
POWER FOR NON-RECIPIENTS, INCLUDING ASSESSING THE  IMPACTS  ON  AGRICUL-
TURAL  RECIPIENTS  AS  COMPARED TO THE BENEFITS SUCH RECIPIENTS RECEIVED
UNDER ALL AUTHORITY PROGRAMS FOR THE TWELVE MONTH PERIOD ENDING DECEMBER
THIRTY-FIRST, TWO THOUSAND NINE, AND AS COMPARED TO  OTHER  AGRICULTURAL
CONSUMERS  THAT  DID NOT CHOOSE TO RECEIVE BENEFITS PURSUANT TO SUBDIVI-
SION (B) OF PARAGRAPH THIRTEEN-B OF SECTION ONE  THOUSAND  FIVE  OF  THE
PUBLIC  AUTHORITIES LAW.  SUCH EVALUATION SHALL BE SUBMITTED BY DECEMBER
THIRTY-FIRST, TWO THOUSAND FOURTEEN AND BY DECEMBER  THIRTY-FIRST  EVERY
FIVE YEARS THEREAFTER.
  (2)  THE BOARD, WITH ASSISTANCE FROM THE AUTHORITY, SHALL MAINTAIN THE
NECESSARY RECORDS AND DATA  REQUIRED  TO  PERFORM  SUCH  EVALUATION  AND
RESPOND  TO  REQUESTS  FOR  INFORMATION  PURSUANT  TO ARTICLE SIX OF THE
PUBLIC OFFICERS LAW.
  S 3. Section 1005 of the public authorities law is amended by adding a
new subdivision 13-a to read as follows:
  13-A. ENERGIZE NEW YORK POWER PROGRAM.  (A) NOTWITHSTANDING ANY  OTHER
PROVISION  OF  LAW  TO THE CONTRARY, BUT SUBJECT TO THE TERMS AND CONDI-
TIONS OF FEDERAL ENERGY REGULATORY  COMMISSION  LICENSES,  TO  ALLOCATE,
REALLOCATE OR EXTEND, DIRECTLY OR BY SALE FOR RESALE, UP TO NINE HUNDRED
TEN  MEGAWATTS OF ENERGIZE NEW YORK POWER TO ELIGIBLE APPLICANTS LOCATED

S. 7937--A                          6

WITHIN THE STATE OF NEW YORK UPON THE RECOMMENDATION  OF  THE  NEW  YORK
STATE  ECONOMIC  DEVELOPMENT  POWER ALLOCATION BOARD PURSUANT TO SECTION
ONE HUNDRED EIGHTY-EIGHT-A OF THE ECONOMIC DEVELOPMENT LAW.
  (B) ENERGIZE NEW YORK POWER SHALL MEAN AND CONSIST OF EQUAL AMOUNTS OF
(1)  UP TO FOUR HUNDRED FIFTY-FIVE MEGAWATTS OF FIRM HYDROELECTRIC POWER
FROM THE NIAGARA AND SAINT LAWRENCE HYDROELECTRIC PROJECTS TO  BE  WITH-
DRAWN AS OF JUNE FIRST, TWO THOUSAND TEN FROM UTILITY CORPORATIONS THAT,
AS  OF  MAY THIRTY-FIRST, TWO THOUSAND TEN, PURCHASED SUCH POWER FOR THE
BENEFIT OF THEIR DOMESTIC AND RURAL CONSUMERS ("ENERGIZE NEW YORK HYDRO-
POWER"), AND (2) POWER PROCURED BY THE AUTHORITY THROUGH  A  COMPETITIVE
PROCUREMENT PROCESS, AUTHORITY SOURCES (OTHER THAN THE NIAGARA AND SAINT
LAWRENCE  PROJECTS)  OR  THROUGH AN ALTERNATE METHOD ("ENERGIZE NEW YORK
MARKET POWER"). WITH RESPECT TO ENERGIZE  NEW  YORK  MARKET  POWER,  THE
AUTHORITY  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  IF SUCH LOWER COST POWER COMES FROM
AUTHORITY SOURCES, THE USE OF THAT POWER SHALL NOT REDUCE THE AVAILABIL-
ITY 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.
  (C) NOTWITHSTANDING SECTION ONE THOUSAND NINE OF  THIS  TITLE  OR  ANY
OTHER  PROVISION  OF  LAW  TO THE CONTRARY, THE AUTHORITY IS AUTHORIZED,
BEGINNING JULY FIRST, TWO THOUSAND ELEVEN, TO MAKE  AVAILABLE,  CONTRACT
WITH  AND  SELL  TO  SUCH  ELIGIBLE APPLICANTS AS ARE RECOMMENDED BY THE
ECONOMIC DEVELOPMENT POWER ALLOCATION BOARD UP TO NINE HUNDRED TEN MEGA-
WATTS OF ENERGIZE NEW YORK POWER  FOR  ENERGIZE  NEW  YORK  POWER  ALLO-
CATIONS.  AN  ENERGIZE  NEW YORK POWER ALLOCATION SHALL CONSIST OF EQUAL
PARTS OF ENERGIZE NEW YORK HYDROPOWER AND ENERGIZE NEW YORK MARKET POWER
AS SUCH  TERMS  ARE  DEFINED  IN  PARAGRAPH  (B)  OF  THIS  SUBDIVISION;
PROVIDED, HOWEVER, THAT PRIOR TO ENTERING INTO A CONTRACT WITH AN ELIGI-
BLE  APPLICANT FOR THE SALE OF ENERGIZE NEW YORK POWER, AND PRIOR TO THE
PROVISION OF ELECTRIC SERVICE RELATING TO THE ENERGIZE  NEW  YORK  POWER
ALLOCATION, THE AUTHORITY SHALL OFFER EACH ELIGIBLE APPLICANT THE OPTION
TO  DECLINE  TO PURCHASE THE ENERGIZE NEW YORK MARKET POWER COMPONENT OF
SUCH ALLOCATION. IF AN ELIGIBLE  APPLICANT  DECLINES  TO  PURCHASE  SUCH
MARKET  POWER  FROM THE AUTHORITY, THE AUTHORITY SHALL HAVE NO RESPONSI-
BILITY FOR SUPPLYING SUCH MARKET POWER TO THE ELIGIBLE APPLICANT.
  S 4. Section 1005 of the public authorities law is amended by adding a
new subdivision 13-b to read as follows:
  13-B. RESIDENTIAL CONSUMER DISCOUNT PROGRAMS.  (A) RESIDENTIAL CONSUM-
ER ELECTRICITY COST DISCOUNT.   NOTWITHSTANDING ANY  PROVISION  OF  THIS
TITLE  OR  ARTICLE  SIX OF THE ECONOMIC DEVELOPMENT LAW TO THE CONTRARY,
THE AUTHORITY IS AUTHORIZED, AS DEEMED FEASIBLE  AND  ADVISABLE  BY  THE
TRUSTEES, TO USE REVENUES FROM THE SALE OF HYDROELECTRIC POWER, AND SUCH
OTHER  FUNDS  OF  THE  AUTHORITY AS DEEMED FEASIBLE AND ADVISABLE BY THE
TRUSTEES, TO FUND MONTHLY PAYMENTS TO BE MADE TO SUCH CLASSES  OF  ELEC-
TRICITY  CONSUMERS,  AS  ENJOYED THE BENEFITS OF AUTHORITY HYDROELECTRIC
POWER WITHDRAWN PURSUANT TO SUBDIVISION THIRTEEN-A OF THIS SECTION,  FOR
THE PURPOSE OF MITIGATING PRICE IMPACTS ASSOCIATED WITH THE REALLOCATION
OF  SUCH  POWER. SUCH MONTHLY PAYMENTS SHALL COMMENCE ON JUNE FIRST, TWO
THOUSAND TEN. THE TOTAL ANNUAL AMOUNT OF MONTHLY PAYMENTS FOR THE TWELVE
MONTH PERIOD FROM JUNE FIRST, TWO THOUSAND TEN THROUGH MAY THIRTY-FIRST,
TWO THOUSAND ELEVEN SHALL BE ONE  HUNDRED  MILLION  DOLLARS.  THE  TOTAL
ANNUAL  AMOUNT  OF  MONTHLY  PAYMENTS FOR EACH TWELVE MONTH PERIOD SHALL
DECLINE BY FOURTEEN MILLION DOLLARS EACH OF THE FOUR  SUBSEQUENT  TWELVE
MONTH  PERIODS.    IN THE FIFTH SUBSEQUENT TWELVE MONTH PERIOD THE TOTAL

S. 7937--A                          7

AMOUNT OF MONTHLY PAYMENTS SHALL  DECLINE  BY  ELEVEN  MILLION  DOLLARS.
THEREAFTER,  THE  TOTAL AMOUNT OF MONTHLY PAYMENTS FOR EACH TWELVE MONTH
PERIOD SHALL BE THIRTY-THREE MILLION DOLLARS. THE MONTHLY PAYMENT TO ANY
ONE  CONSUMER  SHALL  NOT EXCEED THE TOTAL MONTHLY ELECTRIC UTILITY COST
INCURRED BY SUCH CONSUMER.  THE TOTAL AMOUNT OF MONTHLY  PAYMENTS  SHALL
BE  APPORTIONED  BY  THE  AUTHORITY  AMONG THE UTILITY CORPORATIONS THAT
PURCHASED SUCH HYDROELECTRIC POWER FOR THE BENEFIT OF THEIR DOMESTIC AND
RURAL CONSUMERS AS OF MAY THIRTY-FIRST, TWO THOUSAND  TEN  ACCORDING  TO
THE  RELATIVE AMOUNTS OF SUCH POWER PURCHASED BY SUCH COMPANIES. MONTHLY
PAYMENTS SHALL BE CREDITED TO  THE  ELECTRICITY  BILLS  OF  SUCH  CORPO-
RATIONS'  DOMESTIC  AND  RURAL CONSUMERS IN A MANNER TO BE DETERMINED BY
THE PUBLIC SERVICE COMMISSION OF THE STATE OF NEW YORK.
  (B) AGRICULTURAL CONSUMER ELECTRICITY COST  DISCOUNT.    UP  TO  EIGHT
MILLION  DOLLARS  OF  THE RESIDENTIAL CONSUMER ELECTRICITY COST DISCOUNT
ESTABLISHED BY PARAGRAPH (A) OF THIS SUBDIVISION SHALL BE DEDICATED  FOR
MONTHLY  PAYMENTS TO AGRICULTURAL PRODUCERS WHO RECEIVE ELECTRIC SERVICE
AT THE RESIDENTIAL RATE. THE COMBINED MONTHLY PAYMENT, UNDER THIS  PARA-
GRAPH  AND  PARAGRAPH (A) OF THIS SUBDIVISION, TO ANY ONE CONSUMER SHALL
NOT EXCEED: (I) THE TOTAL MONTHLY ELECTRIC UTILITY COST INCURRED BY SUCH
CONSUMER; OR (II) THE TOTAL BENEFITS RECEIVED BY SUCH  CUSTOMER  IN  THE
TWELVE  MONTH  PERIOD  ENDING  DECEMBER THIRTY-FIRST, TWO THOUSAND NINE,
FROM THE FIRM HYDROELECTRIC  POWER  FROM  AUTHORITY'S  NIAGARA  AND  ST.
LAWRENCE  HYDROELECTRIC  PROJECTS PURCHASED BY A UTILITY CORPORATION FOR
THE BENEFIT OF ITS RURAL AND DOMESTIC CUSTOMERS.   THE TOTAL  AMOUNT  OF
MONTHLY PAYMENTS SHALL BE APPORTIONED BY THE AUTHORITY AMONG THE UTILITY
CORPORATIONS IN THE SAME MANNER AS THEY ARE APPORTIONED IN PARAGRAPH (A)
OF THIS SUBDIVISION. MONTHLY PAYMENTS SHALL BE CREDITED TO THE ELECTRIC-
ITY BILLS OF SUCH CORPORATIONS' AGRICULTURAL CONSUMERS IN A MANNER TO BE
DETERMINED BY THE PUBLIC SERVICE COMMISSION OF THE STATE OF NEW YORK.
  S 5. Section 1005 of the public authorities law is amended by adding a
new subdivision 18 to read as follows:
  18.  FOR  THE PURPOSE OF FURNISHING THE STATE WITH SYSTEMATIC INFORMA-
TION REGARDING THE STATUS AND  THE  ACTIVITIES  OF  THE  AUTHORITY,  THE
AUTHORITY  SHALL  SUBMIT TO THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE
SENATE, SPEAKER OF THE ASSEMBLY, THE MINORITY LEADER OF THE  SENATE  AND
THE MINORITY LEADER OF THE ASSEMBLY, WITHIN NINETY DAYS AFTER THE END OF
ITS  FISCAL YEAR, A COMPLETE AND DETAILED ANNUAL REPORT ON EACH ECONOMIC
DEVELOPMENT POWER PROGRAM  IT  ADMINISTERS.  SUCH  ANNUAL  REPORT  SHALL
INCLUDE, BUT NOT BE LIMITED TO, THE FOLLOWING INFORMATION:
  A.  THE  NUMBER  OF RECIPIENTS OF ECONOMIC POWER PROGRAM BENEFITS, THE
ECONOMIC REGION IN WHICH EACH RECIPIENT IS LOCATED, THE TYPE AND  AMOUNT
OF  ASSISTANCE  PROVIDED,  MEGAWATTS  OF  ELECTRICITY AWARDED, LENGTH OF
CURRENT CONTRACT, CURRENT CONTRACT COMPLIANCE STATUS, LAST AUDIT, NUMBER
OF JOBS RETAINED AND/OR ADDED IN THE  FISCAL  YEAR,  APPROXIMATE  ENERGY
EFFICIENCY  SAVINGS  AND AMOUNT OF POWER REALLOCATED FROM PREVIOUS YEARS
DUE TO FORFEITED BENEFITS; AND
  B. COST  TO  THE  AUTHORITY  TO  PROVIDE  ECONOMIC  DEVELOPMENT  POWER
PROGRAMS DURING THE PREVIOUS FISCAL YEAR.
  S  6. Transitional electricity discount. Notwithstanding any provision
of title 1 of article 5 of the public authorities law or  article  6  of
the economic development law to the contrary, with respect to applicants
who  are  in substantial compliance with all contractual commitments and
receiving benefits under the power for jobs, energy cost  savings  bene-
fit,  economic  development,  high load factor or municipal distribution
agency programs, but would otherwise not receive a  recommendation  from
the  New  York  state economic development power allocation board for an

S. 7937--A                          8

energize New York power allocation pursuant  to  section  188-a  of  the
economic  development  law,  such  board  shall recommend that the power
authority of the state of New York provide for a transitional  electric-
ity discount to such applicants. The power authority of the state of New
York is authorized, as deemed feasible and advisable by the trustees, to
provide  such  transitional  electricity discounts as recommended by the
New York State economic development power allocation  board.  The  power
authority  of the state of New York shall identify and advise such board
whether sufficient funds are available for the funding of  such  transi-
tional  electricity  discounts through June 30, 2015.  The amount of the
transitional electricity discount for the period July  1,  2011  through
June  30,  2013 shall be equivalent to 66 percent of the unit (per kilo-
watt-hour) value of the savings received  by  the  applicant  under  the
power  for  jobs  or  energy cost savings benefit programs during the 12
months ending on May 15, 2010. The amount of the transitional  electric-
ity  discount for the period July 1, 2013 through June 30, 2015 shall be
equivalent to 33 percent of the unit (per kilowatt-hour)  value  of  the
savings  received  by  the  applicant under the power for jobs or energy
cost savings benefit programs during the 12 months  ending  on  May  15,
2010.
  S  7. 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 88
of the laws of 2010, is amended to read as follows:
  S  9.  This  act shall take effect immediately and shall expire and be
deemed repealed June [2, 2010] 30, 2011.
  S 8. Section 11 of chapter 645  of  the  laws  of  2006  amending  the
economic  development  law  and other laws relating to reauthorizing the
New York power authority to make contributions to the general  fund,  as
amended  by  chapter  88  of  the  laws  of  2010, is amended to read as
follows:
  S 11.  This act shall take effect immediately and shall be  deemed  to
have been in full force and effect on and after April 1, 2006; provided,
however,  that the amendments to section 183 of the economic development
law and subparagraph 2 of paragraph g of the  ninth  undesignated  para-
graph of section 1005 of the public authorities law made by sections two
and  six of this act shall not affect the expiration of such section and
subparagraph, respectively, and shall be  deemed  to  expire  therewith;
provided  further,  however,  that  the amendments to section 189 of the
economic development law and subdivision 9 of section 186-a of  the  tax
law  made  by  sections  three, four, five and ten of this act shall not
affect the repeal of such section  and  subdivision,  respectively,  and
shall  be  deemed  to  be repealed therewith; provided further, however,
that section seven of this act shall expire and be deemed repealed  June
[2, 2010] 30, 2011.
  S  9.  Paragraphs  2  and  4  of subdivision (h) of section 183 of the
economic development law, as amended by chapter 88 of the laws of  2010,
are amended to read as follows:
  2.  During  the period commencing on November first, two thousand five
and ending on June [second] THIRTIETH, two thousand [ten] ELEVEN  eligi-
ble  businesses  shall  only  include  customers  served under the power
authority of the state of New York's high load factor, economic develop-
ment power and other business customers served by political 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

S. 7937--A                          9

effective date of this subdivision whose power prices may be subject  to
increase  before  June  [second]  THIRTIETH,  two thousand [ten] 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 relinquished by or withdrawn from a  recipient
shall be deemed to be relinquished 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 available authority resources  as  deemed  feasible
and  advisable  by  the  trustees pursuant to section seven of part U of
chapter fifty-nine of the laws of two thousand six.
  4. Applications for an energy cost savings benefit  shall  be  in  the
form  and  contain such information, exhibits and supporting data as the
board may prescribe. The board shall review  the  applications  received
and shall determine the applications which best meet the criteria estab-
lished for the benefits pursuant to this subdivision and it shall recom-
mend  such  applications to the power authority of the state of New York
with such terms and conditions as it deems appropriate; provided, howev-
er, that for energy cost savings benefits  granted  on  or  after  [June
thirtieth]  MAY FIFTEENTH, two thousand [nine] TEN through June [second]
THIRTIETH, two thousand [ten]  ELEVEN,  the  board  shall  expedite  the
awarding  of such benefits and shall defer the review of compliance with
such criteria until after the applicant has been awarded an energy  cost
savings  benefit.  Such  terms  and  conditions shall include reasonable
provisions providing for the partial or complete withdrawal of the ener-
gy cost savings benefit in the event the  recipient  fails  to  maintain
mutually  agreed  upon commitments that may include, but are not limited
to, levels of employment,  capital  investment  and  power  utilization.
Recommendation  for  approval  of  an  energy cost savings benefit shall
qualify an applicant to receive an energy cost savings benefit from  the
power  authority  of  the  state  of  New York pursuant to the terms and
conditions of the recommendation.
  S 10. The opening paragraph of  paragraph  5  of  subdivision  (a)  of
section 189 of the economic development law, as amended by chapter 88 of
the laws of 2010, is amended to read as follows:
  "Power   for  jobs  electricity  savings  reimbursements"  shall  mean
payments made by the power authority of the state of New York as  recom-
mended  by  the board to recipients of allocations of power under phases
four and five of the power for jobs program for a period of  time  until
November  thirtieth,  two thousand four, subsequent to the expiration of
their phase four or five power for jobs contract provided  however  that
any  power  for  jobs  recipient  may  choose  to receive an electricity
savings reimbursement as a substitute for a contract extension  for  the
period  from  the  date  the  recipient's  contract expires through June
[second] THIRTIETH, two thousand [ten] ELEVEN. The "basic reimbursement"
is an amount that when credited against  the  recipient's  actual  "unit
cost  of  electricity"  during a quarter (meaning the cost for commodity
and delivery per kilowatt-hour for the quantity of electricity purchased
and delivered under the power for jobs program during a  similar  period
in  the final year of the recipient's contract), results in an effective
unit cost of electricity during the quarter equal to  the  average  unit
cost  of  electricity  such  recipient paid during the final year of the
contract for power allocated under phase four or five of the  power  for
jobs  program,  PROVIDED HOWEVER THAT NOTWITHSTANDING THE FOREGOING, FOR

S. 7937--A                         10

THE PERIOD MAY SIXTEENTH, TWO THOUSAND TEN THROUGH JUNE  THIRTIETH,  TWO
THOUSAND  ELEVEN,  THE  BASIC REIMBURSEMENT SHALL BE AN AMOUNT SUCH THAT
THE RECIPIENT RECEIVES  UNIT  (PER  KILOWATT-HOUR)  ELECTRICITY  SAVINGS
EQUIVALENT  TO  THE AVERAGE UNIT ELECTRICITY SAVINGS RECEIVED DURING THE
TWELVE MONTHS ENDING ON MAY FIFTEENTH, TWO THOUSAND TEN.
  S 11. Subdivisions (f) and (l) of section 189 of the economic develop-
ment law, as amended by chapter 88 of the laws of 2010, are  amended  to
read as follows:
  (f)  Eligibility.  The  board  shall  recommend applications for allo-
cations of power under the power for jobs program to or for the  use  of
businesses  which  normally  utilize  a  minimum peak electric demand in
excess of four hundred kilowatts; provided,  however,  that  up  to  one
hundred  megawatts  of power available for allocation during the initial
three phases of the power for jobs program may be recommended for  allo-
cations  to  not-for-profit  corporations  and to small businesses; and,
provided, further that up to seventy-five megawatts of  power  available
for allocation during the fourth phase of the program may be recommended
for  allocations to not-for-profit corporations and to small businesses.
The board may require small businesses that normally utilize  a  minimum
peak  electric  demand  of  less than one hundred kilowatts to aggregate
their electric demand in amounts of no less than one hundred  kilowatts,
for  the  purposes  of applying to the board for an allocation of power.
The board shall recommend allocations of the  additional  three  hundred
megawatts  available  during the fourth phase of the program to any such
eligible applicant, including any recipient of  power  allocated  during
the first phase of the program. The board shall recommend allocations of
the  additional  one hundred eighty-three megawatts available during the
fifth phase of the program to  any  eligible  applicant,  including  any
recipient  of  power allocated during the second and third phases of the
program; provided, however, that the term of contracts  for  allocations
under the fifth phase of the program shall in no case extend beyond June
[second]  THIRTIETH,  two  thousand  [ten]  ELEVEN.  Notwithstanding any
provision of law to the contrary, and, in particular, the provisions  of
this chapter concerning the terms of contracts for allocations under the
power  for  jobs  program, the terms of any contract with a recipient of
power allocated under phase two of the power for jobs program  that  has
expired  or will expire on or before the thirty-first day of August, two
thousand two, may be extended by the power authority of the state of New
York for an additional period of three months effective on the  date  of
such  expiration,  pending  the filing and approval of an application by
such recipient for an allocation under the fifth phase of  the  program.
The  term  of any new contract with such recipient under the fifth phase
of the program shall be deemed  to  include  any  three  month  contract
extension  made pursuant to this subdivision and the termination date of
any such new contract under phase five shall be no later  than  if  such
new  contract  had  commenced  upon  the  expiration  of the recipient's
original phase two contract. The terms of any contract with a  recipient
of  power  allocated under phase four and/or phase five of the power for
jobs program that has expired or will expire on or  before  the  thirty-
first  day  of December, two thousand five, may be extended by the power
authority of the state of New York from a date beginning no earlier than
the first day of December, two thousand four and extending through  June
[second] THIRTIETH, two thousand [ten] ELEVEN.
  (l)  The board shall solicit and review applications for the power for
jobs electricity savings reimbursements  and  contract  extensions  from
recipients  of  power for jobs allocations under phases four and five of

S. 7937--A                         11

the program for the award of such reimbursements and/or contract  exten-
sions.  The  board  may  prescribe  a simplified form and content for an
application for such reimbursements or extensions. An applicant shall be
eligible  for  such  reimbursements  and/or  extensions only if it is in
compliance with and agrees to continue to meet  the  job  retention  and
creation  commitments set forth in its prior power for jobs contract, or
such other commitments as the board deems reasonable; provided, however,
that for the power  for  jobs  electricity  savings  reimbursements  and
contract  extensions  granted  on  or after June thirtieth, two thousand
nine through June [second] THIRTIETH, two  thousand  [ten]  ELEVEN,  the
board  shall  expedite the awarding of such reimbursements and/or exten-
sions and shall defer the review of  compliance  with  such  commitments
until  after the applicant has been awarded a power for jobs electricity
savings reimbursement and/or contract extension. The board shall  review
such  applications  and  make  recommendations for the award: 1. of such
reimbursements through the power authority of the state of New York  for
a  period of time up to November thirtieth, two thousand four, and 2. of
such contract extensions or reimbursements as applied for by the recipi-
ent for a period of time beginning December first, two thousand four and
ending June [second] THIRTIETH, two thousand [ten] ELEVEN.  At  no  time
shall  a  recipient  receive  both  a  reimbursement and extension after
December first, two thousand four. The power authority of the  state  of
New  York  shall receive notification from the board regarding the award
of power for jobs electricity  savings  reimbursements  and/or  contract
extensions.
  S  12.  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]  ELEVEN,  any  utility  which
delivers  power  under  the  power  for  jobs program, 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. 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  other-
wise  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 develop-
ment  law, or from customers whose allocation has been transferred to an
energy service company, or from energy service companies to  which  such
allocation  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 subdivi-
sion, "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  allocation  has  been  transferred,
less  the  utility's  cost  of  such power under such program. Provided,

S. 7937--A                         12

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 kilowatt  hours,  purchased  by  the
customers  of  such utility under such program during the taxable period
that exceeds the prorated "baseline energy use" by all customers of that
utility purchasing power under such program during the  taxable  period.
"Baseline energy use" with respect to each customer shall mean the larg-
est  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 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. No electric corporation 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 certif-
icate 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 13. Subparagraph 2 of paragraph g of the  ninth  undesignated  para-
graph of section 1005 of the public authorities law, as amended by chap-
ter 217 of the laws of 2009, is amended to read as follows:
  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
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

S. 7937--A                         13

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 program for the additional three hundred megawatts 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 two hundred twenty-six of the laws of two thousand two. In
state  fiscal year two thousand 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  program  for  the  additional  three
hundred  megawatts provided under chapter sixty-three of the laws of two
thousand and under the fifth phase for the additional one hundred eight-
y-three megawatts provided under chapter two hundred twenty-six  of  the
laws  of  two thousand two. In addition, such authorization for contrib-
ution for any extension of any contract for allocations under the fourth
phase of the program and under the fifth phase of the  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 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  CONTRIBUTION FOR STATE FISCAL YEAR TWO THOUSAND
TEN--TWO THOUSAND ELEVEN SHALL BE SEVEN AND  ONE-HALF  MILLION  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] SIXTY-NINE million [five hundred thousand]
dollars.
  S 14. The opening paragraph of subdivision 5 of section  1005  of  the
public  authorities  law, as amended by chapter 294 of the laws of 1968,
is 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

S. 7937--A                         14

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
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.
  S 15. Subdivision 16 of section 1005 of the public authorities law, as
added by chapter 217 of the laws of 2009, is REPEALED.
  S 16. Subdivision 16 of section 1005 of the public authorities law, as
added  by chapter 477 of the laws of 2009, is renumbered subdivision 17,
and paragraph (a) of such subdivision is amended to read as follows:
  (a) As deemed feasible and advisable by the trustees, to  finance  and
design, develop, construct, implement, provide and administer energy-re-
lated  projects,  programs  and  services  for any public entity and any
recipient of the economic development power, expansion  power,  replace-
ment  power,  preservation  power,  high  load  factor  power, municipal
distribution agency power, [and the] power for jobs,  AND  ENERGIZE  NEW
YORK  POWER  programs administered by the authority. In establishing and
providing  high  performance  and  sustainable  building  programs   and
services  authorized by this subdivision, the authority is authorized to
consult standards, guidelines, rating systems,  and/or  criteria  estab-
lished  or  adopted by other organizations, including but not limited to
the United States green building council under its leadership in  energy
and  environmental  design  (LEED)  programs,  the green building initi-
ative's green globes rating system, and the American National  Standards
Institute.  The  source  of  any  financing and/or loans provided by the
authority for the purposes of this subdivision may be  the  proceeds  of
notes  issued pursuant to section one thousand nine-a of this title, the

S. 7937--A                         15

proceeds of bonds issued pursuant to section one thousand  ten  of  this
title, or any other available authority funds.
  S 17.  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 17-a. Notwithstanding the provisions of article  5  of  the  general
construction  law, the provisions of chapter 316 of the laws of 1997 and
section 7 of chapter 645 of the laws of  2006  are  hereby  revived  and
shall  continue  in  full force and effect as such provisions existed on
June 2, 2010.
  S 18. This act shall take effect immediately and shall  be  deemed  to
have  been  in full force and effect on and after June 2, 2010; provided
that sections nine, ten and eleven of this act shall take effect on  the
same  date  and  in  the  same manner as chapter 88 of the laws of 2010,
takes effect; provided that:
  a. the amendments to section 183 of the economic development law  made
by  section  nine  of  this  act shall not affect the expiration of such
section and shall be deemed to expire therewith;
  b. the amendments to section 189 of the economic development law  made
by  sections  ten  and eleven of this act shall not affect the repeal of
such section and shall be deemed repealed therewith;
  c. the amendments to section 186-a of the  tax  law  made  by  section
twelve of this act shall not affect the repeal of such section and shall
be deemed repealed therewith;
  d. the amendments to subparagraph 2 of paragraph g of the 9th undesig-
nated  paragraph  of  section 1005 of the public authorities law made by
section thirteen of this act shall not affect  the  expiration  of  such
subparagraph and shall be deemed to expire therewith; and
  e.   the amendments to paragraph (a) of subdivision 17 of section 1005
of the public authorities law, made by  section  sixteen  of  this  act,
shall  not affect the expiration of such subdivision and shall be deemed
to expire therewith.