Senate Bill S53304

                                 BILL NUMBER:  S53304

 TITLE OF BILL :

An act to amend the state finance law, in relation to authorizing the
aggregate purchases of energy for state agencies, institutions, local
governments, public authorities and public benefit corporations; and
providing for the repeal of such provisions upon expiration thereof


 PURPOSE :

The purpose of this bill is to expand the authority of the Office of
General Services (OGS) to purchase and deliver electricity and
renewable energy as centralized services to state agencies.

 SUMMARY OF PROVISIONS :

Section 1 of the bill would amend State Finance Law § 97-g(4} to
authorize OGS to purchase and deliver renewable energy and renewable
energy credits or attributes on behalf of State agencies; to authorize
OGS to make such purchases, along with the purchase of electricity,
from suppliers in addition to the power Authority of the State of New
York.  Section 1 would also clarify OGS authority to purchase fuels
that include alternative fuels as well as gasoline and diesel fuel on
behalf of State agencies.
              

Section 2 of the bill would require OGS to prepare a report to the
Governor, Speaker of the Assembly and Temporary President of the
Senate on its aggregate electric procurement program and submit it on
February 15, 2011.

Section 3 of the bill would provide for an immediate effective date,
and expiration on July 31, 2011.

 EXISTING LAW :

State Finance Law § 97-g authorizes OGS to procure and provide certain
services and commodities to state agencies. Existing law does not
expressly authorize the provision of renewable energy or renewable
energy credits or attributes.

 LEGISLATIVE HISTORY :

A similar bill, S.5730, was introduced in 2006 but did not advance out
of committee.

 STATEMENT IN SUPPORT :

This bill would authorize OGS to purchase and deliver, as centralized
services, renewable energy and renewable energy credits and
attributes, along with electricity, from the New York Power Authority
and other suppliers. Rather than relying on the delivered price for
such services from a servicing utility, the bill would allow OGS to
leverage the value of aggregated purchasing by the State. OGS would
effectuate these purchases through specific annual internal service
fund appropriations.  The benefitted State agencies that receive such
centralized services would continue to reimburse the internal service
fund.  Similarly, the bill would clarify that OGS may supply to State
agencies alternative fuels, such as biodiesel and compressed natural
gas, for motor vehicle fleets. This allows the benefitted agency to
avoid expending resources on duplicative infrastructure to service
alternative fueled vehicles.  This bill is expected to result in
significant savings for the State and for public benefit corporations
and public authorities. For example, during one recent 12-month period
ending in November 2008, OGS alone avoided over $1.24 million in
electric commodity costs (approximately 4 percent of the value) by
purchasing electricity directly through the New York Independent
Systems Operator rather than from the local electric utility.

 BUDGET IMPLICATIONS :

Cost containment and potential savings would accrue to State agencies
that receive centralized services with annual avoided costs
approaching $4 million.

 EFFECTIVE DATE :
This bill would take effect immediately and would sunset on July 31,
2011.