A. 9048 2
4. in the future Long Island should seek to reformulate its energy
distribution methods so that the various townships will take responsi-
bility for producing the power necessary to match growth;
5. the public election of trustees to the power authority will serve
to better represent local interests and issues;
6. as a matter of public policy, relinquishing local control over
power production does not allow siting and technology decisions to be
made by the most impacted population. Therefore, through the election of
local trustees, the communities can work to accept the responsibility
for the energy production decisions necessary to accommodate their
needs; and
7. the Long Island Power Authority (LIPA) was created by the state to
be the retail supplier of electricity and is charged with developing
energy policy, rate setting and financial planning for the Long Island
service territory. LIPA was intended to "provide safe and adequate
service at lower rates while facilitating the shift of investment into
more beneficial energy demand/energy supply management alternatives".
Moreover, the state intended that LIPA utilize "to the fullest extent
practicable, all economical means of conservation, and technologies that
rely on renewable energy resources, cogeneration and improvements in
energy efficiency which will benefit the interests of the ratepayers of
the service area".
The legislature finds that the interests set forth in this section
will be best served by a utility operated by an elected board of trus-
tees.
S 2. Section 1020-d of the public authorities law, as added by chapter
506 of the laws of 1995, is REPEALED and a new section 1020-d is added
to read as follows:
S 1020-D. TRUSTEES. 1. BEGINNING JANUARY FIRST, TWO THOUSAND TEN, THE
AUTHORITY SHALL CONSIST OF SEVENTEEN TRUSTEES. ONE TRUSTEE, WHO SHALL BE
THE CHAIR, SHALL BE APPOINTED BY THE GOVERNOR, AND SHALL SERVE AT THE
PLEASURE OF THE GOVERNOR. SUCH CHAIR SHALL HAVE EXPERIENCE IN UTILITY
MANAGEMENT AND ANY MEMBER APPOINTED TO A TERM COMMENCING ON OR AFTER
JUNE THIRTIETH, TWO THOUSAND NINE SHALL HAVE EXPERIENCE IN ONE OR MORE
OF THE FOLLOWING AREAS OF EXPERTISE: UTILITY MANAGEMENT; ELECTRICITY
GENERATION; ELECTRICITY TRANSMISSION; PUBLIC ADMINISTRATION; BUSINESS
MANAGEMENT; FINANCE; OR HAVE EXPERIENCE IN SOME OTHER AREA OF ACTIVITY
CENTRAL TO THE MISSION OF THE AUTHORITY. SIXTEEN TRUSTEES SHALL BE
ELECTED WITH ONE EACH FROM EACH OF THE FOLLOWING POLITICAL SUBDIVISIONS,
OR IN THE CASE OF THE COUNTY OF QUEENS, THE PORTION OF THE COUNTY OF
QUEENS WITHIN THE SERVICE AREA OF THE AUTHORITY:
(A) COUNTY OF NASSAU:
(1) TOWN OF HEMPSTEAD,
(2) TOWN OF NORTH HEMPSTEAD,
(3) TOWN OF OYSTER BAY,
(4) CITY OF LONG BEACH, AND
(5) CITY OF GLEN COVE;
(B) COUNTY OF SUFFOLK:
(1) TOWN OF BABYLON,
(2) TOWN OF BROOKHAVEN,
(3) TOWN OF EAST HAMPTON,
(4) TOWN OF HUNTINGTON,
(5) TOWN OF ISLIP,
(6) TOWN OF RIVERHEAD,
(7) TOWN OF SHELTER ISLAND,
(8) TOWN OF SMITHTOWN,
A. 9048 3
(9) TOWN OF SOUTHAMPTON,
(10) TOWN OF SOUTHOLD;
(C) THAT PORTION OF THE COUNTY OF QUEENS WITHIN THE AUTHORITIES
SERVICE AREA. EACH ELECTED TRUSTEE SHALL BE A RESIDENT OF THE POLITICAL
SUBDIVISION FROM WHICH HE OR SHE IS ELECTED. IN THE CASE OF THE COUNTY
OF QUEENS, THE TRUSTEE MUST ALSO RESIDE IN THE AUTHORITY SERVICE AREA.
NO PERSON WHO IS AN ELECTED OR APPOINTED OFFICIAL OF THE STATE OR ANY
MUNICIPALITY, OR ANY AGENCY OR INSTRUMENTALITY THEREOF, SHALL BE QUALI-
FIED TO SERVE AS AN ELECTED TRUSTEE. EACH TRUSTEE SHALL HOLD OFFICE FOR
A TERM OF TWO YEARS AND SHALL BE ELECTED AT THE SAME TIME AS THE BIENNI-
AL TOWN ELECTION. IN THE EVENT OF A VACANCY OCCURRING IN THE OFFICE OF
AN ELECTED TRUSTEE BY DEATH, RESIGNATION OR OTHERWISE, A SUCCESSOR SHALL
BE CHOSEN BY THE GOVERNING BODY OF THE POLITICAL SUBDIVISION FOR THE
UNEXPIRED TERM.
2. SUCH TRUSTEES SHALL BE ELECTED IN ELECTIONS CONDUCTED BY THE BOARD
OF ELECTIONS PURSUANT TO THE APPLICABLE PROVISIONS OF THE ELECTION LAW.
NO POLITICAL PARTY SHALL BE ENTITLED TO NOMINATE CANDIDATES FOR THE
OFFICE OF TRUSTEE AT ANY SUCH ELECTION.
3. NINE TRUSTEES SHALL CONSTITUTE A QUORUM FOR THE PURPOSE OF CONDUCT-
ING THE BUSINESS OF THE AUTHORITY. THE VOTE OF THE MAJORITY OF THE TRUS-
TEES SHALL BE REQUIRED FOR THE PURPOSE OF TAKING ACTION.
4. NO TRUSTEE SHALL RECEIVE A SALARY, BUT EACH SHALL BE ENTITLED TO
REIMBURSEMENT FOR REASONABLE EXPENSES IN THE PERFORMANCE OF DUTIES
ASSIGNED IN THIS SECTION.
S 2-a. Section 1020-d of the public authorities law, as added by chap-
ter 807 of the laws of 1986, is renumbered section 1020-d-1.
S 3. Section 1020-h of the public authorities law, as added by chapter
517 of the laws of 1986, is amended by adding two new subdivisions 12
and 13 to read as follows:
12. NOTHING IN THIS TITLE SHALL BE CONSTRUED AS PREEMPTING, OR OTHER-
WISE LIMITING, THE RIGHTS OF ANY MUNICIPALITY LOCATED IN WHOLE OR IN
PART IN THE SERVICE AREA FROM EXERCISING ANY POWER OR AUTHORITY GRANTED
TO IT BY ARTICLE FOURTEEN-A OF THE GENERAL MUNICIPAL LAW, INCLUDING THE
RIGHT TO ACQUIRE FACILITIES THROUGH EMINENT DOMAIN AS SET FORTH IN
SUBDIVISION SIX OF SECTION THREE HUNDRED SIXTY OF THE GENERAL MUNICIPAL
LAW.
13. IN CONJUNCTION WITH THE EXERCISE OF THE POWER OF EMINENT DOMAIN
SPECIFICALLY RESERVED TO MUNICIPALITIES LOCATED IN WHOLE OR IN PART IN
THE SERVICE AREA, THE LEGISLATIVE FINDINGS WITH RESPECT TO THE APPROPRI-
ATE VALUATION OF LILCO'S PROPERTY, AS SET FORTH IN PARAGRAPHS (F)
THROUGH (M) OF SUBDIVISION ONE OF THIS SECTION, SHALL BE CONSIDERED BY
THE COURT IN ESTABLISHING JUST COMPENSATION FOR ANY PROPERTY TAKEN BY
ANY SUCH MUNICIPALITY.
S 4. Subdivision 1 of section 5 of the public service law is amended
by adding a new paragraph i to read as follows:
I. TO THE LONG ISLAND POWER AUTHORITY AND/OR ITS SUBSIDIARIES WHEN
SUCH AUTHORITY SHALL PROPOSE IMPLEMENTATION OF AN INCREASE IN AVERAGE
CUSTOMER RATES SUCH PROPOSED INCREASE SHALL NOT BE IMPLEMENTED WITHOUT
APPROVAL OF THE COMMISSION FOLLOWING A FULL EVIDENTIARY HEARING PURSUANT
TO REGULATIONS. WHEN PETITIONING THE PUBLIC SERVICE COMMISSION FOR A
RATE INCREASE, THE LONG ISLAND POWER AUTHORITY MUST PREPARE AN ECONOMIC
IMPACT STATEMENT ASSESSING THE IMPACT A RATE INCREASE WOULD HAVE ON THE
LONG ISLAND ECONOMY AND EFFORTS TO STIMULATE ECONOMIC GROWTH.
S 5. Section 1020-f of the public authorities law, as added by chapter
517 of the laws of 1986, is amended by adding two new subdivisions (bb)
and (cc) to read as follows:
A. 9048 4
(BB) NO FEE, RATE OR OTHER CHARGE SHALL BE ESTABLISHED, FIXED OR
REVISED UNLESS AND UNTIL THE AUTHORITY HAS PROVIDED FOR WRITTEN PUBLIC
COMMENT AND HAS HELD A PUBLIC HEARING AT LEAST SIXTY DAYS PRIOR TO A
VOTE TO INCREASE RATES TO PROVIDE THE PUBLIC WITH AN OPPORTUNITY TO BE
HEARD CONCERNING THE SAME WITH AT LEAST ONE SUCH HEARING TO BE HELD IN
THE COUNTY OF SUFFOLK AND AT LEAST ONE IN THE COUNTY OF NASSAU. NOTICE
OF SUCH SHALL BE PUBLISHED BY THE AUTHORITY NOT LESS THAN TEN NOR MORE
THAN TWENTY DAYS BEFORE THE DATE SET THEREFOR IN A NEWSPAPER OR NEWSPA-
PERS HAVING GENERAL CIRCULATION IN THE SERVICE AREA. SUCH NOTICE SHALL
SET FORTH THE DATE, TIME AND PLACE OF SUCH HEARING AND SHALL INCLUDE A
BRIEF DESCRIPTION OF THE MATTERS TO BE CONSIDERED AT SUCH HEARING. AT
ALL SUCH HEARINGS, ALL INTERESTED PERSONS SHALL HAVE AN OPPORTUNITY TO
BE HEARD CONCERNING THE MATTERS UNDER CONSIDERATION.
(CC) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, RULE OR REGULATION TO
THE CONTRARY, THE AUTHORITY SHALL NOT OWN OR POSSESS ANY PORTION OF ANY
NUCLEAR GENERATING FACILITIES.
S 6. Section 1020-ii of the public authorities law, as renumbered by
chapter 234 of the laws of 2004, is renumbered section 1020-jj and a new
section 1020-ii is added to read as follows:
S 1020-II. POST CONTRACTS ON WEBSITE. THE AUTHORITY SHALL POST ANY AND
ALL CONTRACTS OF THE AUTHORITY ON ITS WEBSITE.
S 7. The general municipal law is amended by adding a new article 2-A
to read as follows:
ARTICLE 2-A
FINANCE OF THE INSTALLATION OF
DISTRIBUTED GENERATION RENEWABLE ENERGY SOURCES
OR ENERGY EFFICIENCY IMPROVEMENTS
SECTION 27. LEGISLATIVE FINDINGS.
27-A. DEFINITIONS.
27-B. CONTRACTUAL ASSESSMENTS.
27-C. REPORT.
27-D. PURCHASE AND INSTALLATION.
27-E. LIENS.
S 27. LEGISLATIVE FINDINGS. 1. THE LEGISLATURE FINDS THAT ENERGY
CONSERVATION EFFORTS, INCLUDING THE PROMOTION OF ENERGY EFFICIENCY
IMPROVEMENTS TO RESIDENTIAL, COMMERCIAL, INDUSTRIAL, OR OTHER REAL PROP-
ERTY ARE NECESSARY TO ADDRESS THE ISSUE OF GLOBAL CLIMATE CHANGE.
2. THE UPFRONT COST OF MAKING RESIDENTIAL, COMMERCIAL, INDUSTRIAL, OR
OTHER REAL PROPERTY MORE ENERGY EFFICIENT PREVENTS MANY PROPERTY OWNERS
FROM MAKING THOSE IMPROVEMENTS. TO MAKE THOSE IMPROVEMENTS MORE AFFORDA-
BLE AND TO PROMOTE THE INSTALLATION OF THOSE IMPROVEMENTS, IT IS NECES-
SARY TO AUTHORIZE A PROCEDURE FOR AUTHORIZING ASSESSMENTS TO FINANCE THE
COST OF ENERGY EFFICIENCY IMPROVEMENTS.
3. THE LEGISLATURE DECLARES THAT A PUBLIC PURPOSE WILL BE SERVED BY A
CONTRACTUAL ASSESSMENT PROGRAM THAT PROVIDES THE GOVERNING BODY OF ANY
LOCAL GOVERNMENT WITH THE AUTHORITY TO FINANCE THE INSTALLATION OF
DISTRIBUTED GENERATION RENEWABLE ENERGY SOURCES OR ENERGY EFFICIENCY
IMPROVEMENTS THAT ARE PERMANENTLY FIXED TO RESIDENTIAL, COMMERCIAL,
INDUSTRIAL, OR OTHER REAL PROPERTY.
4. THIS ARTICLE SHALL NOT BE USED TO FINANCE FACILITIES FOR PARCELS
WHICH ARE UNDERGOING DEVELOPMENT.
5. THIS ARTICLE SHALL NOT BE USED TO FINANCE THE PURCHASE OR INSTALLA-
TION OF APPLIANCES THAT ARE NOT PERMANENTLY FIXED TO RESIDENTIAL,
COMMERCIAL, INDUSTRIAL, OR OTHER REAL PROPERTY.
A. 9048 5
6. ASSESSMENTS MAY BE LEVIED PURSUANT TO THIS ARTICLE ONLY WITH THE
FREE AND WILLING CONSENT OF THE OWNER OF EACH LOT OR PARCEL ON WHICH AN
ASSESSMENT IS LEVIED AT THE TIME THE ASSESSMENT IS LEVIED.
S 27-A. DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE, THE FOLLOWING
TERMS SHALL HAVE THE FOLLOWING MEANINGS:
1. "LOCAL GOVERNMENT" SHALL MEAN A CITY, TOWN, VILLAGE, OR COUNTY.
2. "GOVERNING BOARD" SHALL MEAN THE CITY COUNCIL, TOWN BOARD, VILLAGE
BOARD, OR COUNTY LEGISLATURE OR BOARD OF SUPERVISORS.
3. "RENEWABLE ENERGY SOURCES AND ENERGY EFFICIENT IMPROVEMENTS" SHALL
MEAN SOLAR THERMAL, PHOTOVOLTAIC, WIND, HYDROELECTRIC, GEOTHERMAL,
GEOTHERMAL GROUND SOURCE HEAT, TIDAL ENERGY, WAVE ENERGY, OCEAN THERMAL,
AND FUEL CELLS UTILIZING RENEWABLE FUELS AND IMPROVEMENTS WHICH RESULT
IN ENERGY CONSERVATION AND EFFICIENCY.
S 27-B. CONTRACTUAL ASSESSMENTS. 1. THE GOVERNING BODY OF ANY LOCAL
GOVERNMENT MAY ALSO DETERMINE THAT IT WOULD BE IN THE PUBLIC INTEREST TO
DESIGNATE AN AREA WITHIN THE LOCAL GOVERNMENT, WHICH MAY ENCOMPASS THE
ENTIRE LOCAL GOVERNMENT OR A LESSER PORTION, WITHIN WHICH AUTHORIZED
LOCAL GOVERNMENT OFFICIALS AND PROPERTY OWNERS MAY ENTER INTO CONTRACTU-
AL ASSESSMENTS TO FINANCE THE INSTALLATION OF DISTRIBUTED GENERATION
RENEWABLE ENERGY SOURCES OR ENERGY EFFICIENCY IMPROVEMENTS THAT ARE
PERMANENTLY FIXED TO REAL PROPERTY PURSUANT TO THIS ARTICLE.
2. THE GOVERNING BODY SHALL MAKE THESE DETERMINATIONS BY ADOPTING A
LOCAL LAW. THE LOCAL LAW SHALL INCLUDE A STATEMENT THAT THE LOCAL
GOVERNMENT PROPOSES TO MAKE CONTRACTUAL ASSESSMENT FINANCING AVAILABLE
TO PROPERTY OWNERS, SHALL IDENTIFY THE KINDS OF PUBLIC WORKS, DISTRIB-
UTED GENERATION RENEWABLE ENERGY SOURCES, OR ENERGY EFFICIENCY IMPROVE-
MENTS THAT MAY BE FINANCED, SHALL DESCRIBE THE BOUNDARIES OF THE AREA
WITHIN WHICH CONTRACTUAL ASSESSMENTS MAY BE ENTERED INTO, AND SHALL
BRIEFLY DESCRIBE THE PROPOSED ARRANGEMENTS FOR FINANCING THE PROGRAM.
THE LOCAL LAW SHALL STATE THAT IT IS IN THE PUBLIC INTEREST TO FINANCE
THE INSTALLATION OF DISTRIBUTED GENERATION RENEWABLE ENERGY SOURCES OR
ENERGY EFFICIENCY IMPROVEMENTS, OR BOTH, PURSUANT TO SUBDIVISION ONE OF
THIS SECTION, IF APPLICABLE. THE LOCAL LAW SHALL DIRECT PREPARATION OF
A REPORT PURSUANT TO SECTION TWENTY-SEVEN-C OF THIS ARTICLE.
S 27-C. REPORT. THE REPORT REQUIRED BY SECTION TWENTY-SEVEN-B OF THIS
ARTICLE SHALL CONTAIN ALL OF THE FOLLOWING:
1. A MAP SHOWING THE BOUNDARIES OF THE TERRITORY WITHIN WHICH CONTRAC-
TUAL ASSESSMENTS ARE PROPOSED TO BE OFFERED;
2. A DRAFT CONTRACT SPECIFYING THE TERMS AND CONDITIONS THAT WOULD BE
AGREED TO BY A PROPERTY OWNER WITHIN THE CONTRACTUAL ASSESSMENT AREA AND
THE LOCAL GOVERNMENT;
3. A STATEMENT OF LOCAL GOVERNMENT POLICIES CONCERNING CONTRACTUAL
ASSESSMENTS INCLUDING ALL OF THE FOLLOWING:
(A) IDENTIFICATION OF TYPES OF FACILITIES, DISTRIBUTED GENERATION
RENEWABLE ENERGY SOURCES, OR ENERGY EFFICIENCY IMPROVEMENTS THAT MAY BE
FINANCED THROUGH THE USE OF CONTRACTUAL ASSESSMENTS;
(B) IDENTIFICATION OF A LOCAL GOVERNMENT OFFICIAL AUTHORIZED TO ENTER
INTO CONTRACTUAL ASSESSMENTS ON BEHALF OF THE LOCAL GOVERNMENT;
(C) A MAXIMUM AGGREGATE DOLLAR AMOUNT OF CONTRACTUAL ASSESSMENTS; AND
(D) A METHOD FOR SETTING REQUESTS FROM PROPERTY OWNERS FOR FINANCING
THROUGH CONTRACTUAL ASSESSMENTS IN PRIORITY ORDER IN THE EVENT THAT
REQUESTS APPEAR LIKELY TO EXCEED THE AUTHORIZATION AMOUNT;
4. A PLAN FOR RAISING A CAPITAL AMOUNT REQUIRED TO PAY FOR WORK
PERFORMED PURSUANT TO CONTRACTUAL ASSESSMENTS. THE PLAN MAY INCLUDE
AMOUNTS TO BE ADVANCED BY THE LOCAL GOVERNMENT THROUGH FUNDS AVAILABLE
TO IT FROM ANY SOURCE. THE PLAN MAY INCLUDE THE SALE OF A BOND OR BONDS
A. 9048 6
OR OTHER FINANCING RELATIONSHIP. THE PLAN SHALL INCLUDE A STATEMENT OF
OR METHOD FOR DETERMINING THE INTEREST RATE AND TIME PERIOD DURING WHICH
CONTRACTING PROPERTY OWNERS WOULD PAY ANY ASSESSMENT. THE PLAN SHALL
PROVIDE FOR ANY RESERVE FUND OR FUNDS. THE PLAN SHALL PROVIDE FOR THE
APPORTIONMENT OF ALL OR ANY PORTION OF THE COSTS INCIDENTAL TO FINANC-
ING, ADMINISTRATION, AND COLLECTION OF THE CONTRACTUAL ASSESSMENT
PROGRAM AMONG THE CONSENTING PROPERTY OWNERS AND THE LOCAL GOVERNMENT;
AND
5. A REPORT CONCERNING THE ADDITIONAL FEES, IF ANY, THAT SHALL BE
CHARGED FOR INCORPORATING THE PROPOSED CONTRACTUAL ASSESSMENTS INTO THE
ASSESSMENTS OF THE GENERAL TAXES OF THE LOCAL GOVERNMENT ON REAL PROPER-
TY, AND A PLAN FOR FINANCING THE PAYMENT OF SUCH FEES.
S 27-D. PURCHASE AND INSTALLATION. NOTWITHSTANDING ANY OTHER
PROVISION OF THIS ARTICLE, UPON THE WRITTEN CONSENT OF AN AUTHORIZED
LOCAL GOVERNMENT OFFICIAL, THE PROPOSED ARRANGEMENTS FOR FINANCING THE
PROGRAM PERTAINING TO THE INSTALLATION OF DISTRIBUTED GENERATION RENEWA-
BLE ENERGY SOURCES OR ENERGY EFFICIENCY IMPROVEMENTS THAT ARE PERMANENT-
LY FIXED TO REAL PROPERTY MAY AUTHORIZE THE PROPERTY OWNER TO PURCHASE
DIRECTLY THE RELATED EQUIPMENT AND MATERIALS FOR THE INSTALLATION OF
DISTRIBUTED GENERATION RENEWABLE ENERGY SOURCES OR ENERGY EFFICIENCY
IMPROVEMENTS AND TO CONTRACT DIRECTLY FOR THE INSTALLATION OF DISTRIB-
UTED GENERATION RENEWABLE ENERGY SOURCES OR ENERGY EFFICIENCY IMPROVE-
MENTS THAT ARE PERMANENTLY FIXED TO THE PROPERTY OWNER'S RESIDENTIAL,
COMMERCIAL, INDUSTRIAL, OR OTHER REAL PROPERTY.
S 27-E. LIENS. ASSESSMENTS LEVIED PURSUANT TO THIS ARTICLE, AND THE
INTEREST AND ANY PENALTIES THEREON SHALL CONSTITUTE A LIEN AGAINST THE
LOTS AND PARCELS OF LAND ON WHICH THEY ARE MADE, UNTIL SUCH LIENS ARE
PAID. ARTICLE ELEVEN OF THE REAL PROPERTY TAX LAW APPLIES TO THE LEVY
AND COLLECTION OF ASSESSMENTS LEVIED PURSUANT TO THIS ARTICLE, INSOFAR
AS SUCH PROVISIONS ARE NOT IN CONFLICT WITH THE PROVISIONS OF THIS ARTI-
CLE, INCLUDING, BUT NOT LIMITED TO, THE COLLECTION OF ASSESSMENTS IN THE
SAME MANNER AND AT THE SAME TIME AS THE GENERAL TAXES OF THE LOCAL
GOVERNMENT ON REAL PROPERTY ARE PAYABLE AND ANY PENALTIES AND REMEDIES
AND LIEN PRIORITIES IN THE EVENT OF DELINQUENCY AND DEFAULT.
S 8. Paragraph a of section 11.00 of the local finance law is amended
by adding a new subdivision 104 to read as follows:
104. RENEWABLE ENERGY SOURCES OR ENERGY EFFICIENCY IMPROVEMENTS. THE
ACQUISITION AND INSTALLATION OF RENEWABLE ENERGY SOURCES OR ENERGY EFFI-
CIENCY IMPROVEMENTS AS PROVIDED FOR IN ARTICLE TWO-A OF THE GENERAL
MUNICIPAL LAW, THIRTY YEARS.
S 9. This act shall take effect on the one hundred eightieth day after
it shall have become a law.