Senate Bill S312

                                 BILL NUMBER:  S312

 TITLE OF BILL :
An act to amend the public authorities law, in relation to acquisition
of property by the Niagara frontier transportation authority


 PURPOSE :
This bill balances the need to attract new jobs with the need to
retain existing ones located in New York State within thirty miles of
the Niagara Power Project.

 SUMMARY OF PROVISIONS :
Amends the public authorities law to require that when businesses
located in New York State within thirty miles of the Niagara Power
Project relinquish or have been withdrawn from receipt of Expansion
Power provided under the public authorities law, the relinquished or
withdrawn power shall b.e redistributed to businesses within the State
located with 30 miles of the Project.  Fifty percent of such power
shall be allocated to new or expanding businesses and fifty percent
shall be allocated to existing businesses in the State with the
specified 30 miles of the Niagara Power Project.

 JUSTIFICATION :
Before Western New York can experience any semblance of economic
growth via new business creations and existing business expansions, it
              

is vital and necessary that an effort to retain existing businesses
begins. Statistics from the U.S. Bureau of Labor Statistics indicate
that from 1995-200, manufacturing jobs in the Buffalo-Niagara Falls
Metropolitan Area decreased by 5.4%. Recently, the Niagara and Erie
County economies have been further victimized by plant closings or
layoffs, including Globe Metallurgical, SGL Carbon, Occidental
Chemical, Alox, Nabisco, Moore Business Forms Research Development,
Elkem and UCAR Carbon.

In light of these and other indicators of economic decline, especially
in the manufacturing and industrial sectors, more needs to be done to
retain existing businesses in the region. The struggling economies of
Western New York will not grow until the core, existing businesses
realize economic stability. To this end, it is imperative for job
retention, in concert with job creation, be the focus of any
reallocation of Expansion Power in Western New York.

The irony that plant closings abound in the very region responsible
for the Niagara Power Project is not lost on the residents of Western
New York Upon the inception of the Niagara Power Project, the State
Legislature predicted that "industrial activities in the area  WOULD
BE  expanded and increased through the availability of low-cost power
from such new hydro-electric power project" (Chapter 792 of the Laws
of 1958). However, less than half a century later, this promise has
not realized In fact, many of the industries in Western New York are
struggling just to stay afloat.

This bill is the first step in ensuring that those existing businesses
that have been the backbone of Western New York's industrial base be
given an equal opportunity to share in any reallocation of Expansion
Power with those businesses new to or expanding in Western New York.
This bill balances the need to attract new jobs with the need to
retain existing ones.

 LEGISLATIVE HISTORY :
S.101/A.3030 of 2007/2008; Passed Assembly, Referred to Senate
Transportation Committee
S.15/A.11665 of 2005/2006; Referred to Senate Energy Committee
S.2854/A.4904 of 2003/2004; Referred to Senate Energy Committee

 FISCAL IMPLICATIONS :
None.

 EFFECTIVE DATE :
Immediately.