NY State Senate Bill 2009-S6913

Senate Bill S6913

2009-2010 Legislative Session

Authorizes unallocated EP/RP and a percentage of relinquished or withdrawn EP/RP to be allocated for western NY economic development fund benefits

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Archive: Last Bill Status - In Senate Committee Finance Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Apr 13, 2010	reported and committed to finance
Feb 24, 2010	referred to energy and telecommunications

Votes

- Apr 13, 2010 - Energy And Telecommunications Committee Vote
  S6913
  
  11
  
  Aye
  
  0
  
  Nay
  
  1
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Energy And Telecommunications Committee Vote: Apr 13, 2010
      
      aye (11)
      
      Adams
      
      Alesi
      
      Aubertine
      
      Kruger
      
      Libous
      
      Little
      
      Maziarz
      
      Onorato
      
      Parker
      
      Schneiderman
      
      Valesky
      
      aye wr (1)
      
      Griffo

co-Sponsors

2009-S6913 (ACTIVE) - Details

See Assembly Version of this Bill:: A10002
Current Committee:: Senate Finance
Law Section:: Public Authorities Law
Laws Affected:: Amd §1005, Pub Auth L; amd §183, Ec Dev L

2009-S6913 (ACTIVE) - Summary

Authorizes unallocated expansion and replacement power and a percentage of relinquished or withdrawn expansion and replacement power to be allocated for the purposes of western New York economic development fund benefits.

2009-S6913 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S6913

 TITLE OF BILL :
An act to amend the public authorities law and the economic
development law, in relation to authorizing unallocated expansion or
replacement power to be allocated for western New York economic
development fund benefits


 PURPOSE :
The creation of this economic development fund currently has a model
within the existing statute under energy cost savings benefits
program.  Since this would comply with the intent under section 1005
of the Public Authorities Law, this fund would simply expand NYPA's
abilities to assist with the economic development in Western New York.

 SUMMARY OF PROVISIONS :
Section 2 Gives the Authority authorization to allocate unallocated
and relinquished or withdrawn expansion and replacement power to be
used for Western New York economic development fund benefits.

Section 3 Defines eligibility criteria for qualification for such
allocations.

 JUSTIFICATION :
Under Section 1005 of the Public Authorities Law, a designated amount

of expansion and replacement power must be allocated to businesses
located within 30 miles of the Niagara Power Project. A large amount
of this expansion/replacement power is unallocated, due to a
combination of factors, including business closure and portions of
allocations being returned to NYPA by companies unable to meet the
criteria for that allocation.

In addition to this unallocated power is the allocated but not yet
utilized allocation. When expansion/replacement contracts are
authorized by NYPA, the contracts have a stipulation that allocations
be utilized within a certain period of time. During this time period,
while the power can not be allocated to another company, it is sold at
market rate until the company is ready to draw down their allocation.

This bill designates that the proceeds from the sale of this
unallocated power and allocated but not yet being utilized power be
placed into an economic development fund for Western New York.
Utilization of this funding for Western New York abides by the intent
of section 1005, which designates the expansion/replacement power be
allocated within 30 miles of the Niagara power Project.

 LEGISLATIVE HISTORY :
This is a new bill.

 FISCAL IMPLICATIONS :
None to the state.

 EFFECTIVE DATE :
This act shall take effect immediately.

2009-S6913 (ACTIVE) - Bill Text download pdf

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

    S. 6913                                                 A. 10002

                      S E N A T E - A S S E M B L Y

                            February 24, 2010
                               ___________

IN  SENATE  --  Introduced  by Sen. STACHOWSKI -- read twice and ordered
  printed, and when printed to be committed to the Committee  on  Energy
  and Telecommunications

IN  ASSEMBLY  -- Introduced by M. of A. DelMONTE, GABRYSZAK -- read once
  and referred to the Committee on Energy

AN ACT to amend the public authorities law and the economic  development
  law,  in  relation to authorizing unallocated expansion or replacement
  power to be allocated for western New York economic  development  fund
  benefits

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

  Section 1. The opening paragraph of subdivision 13 of section 1005  of
the  public  authorities  law,  as amended by chapter 645 of the laws of
2006, is amended to read as follows:
  Notwithstanding any other provision of law to the contrary but subject
to the terms and conditions  of  federal  energy  regulatory  commission
licenses,  to allocate or reallocate directly or by sale for resale, two
hundred fifty megawatts of firm Niagara project hydroelectric  power  as
"expansion  power" and four hundred forty-five megawatts of firm Niagara
project hydroelectric power as "replacement power" to businesses  within
the  state  located within thirty miles of the Niagara project, and four
hundred ninety megawatts of firm and interruptible power from the  Saint
Lawrence-FDR  project as "preservation power" sold to businesses located
within the counties of Jefferson, Saint Lawrence and Franklin,  provided
that the amount of expansion power allocated to businesses in Chautauqua
county on January first, nineteen hundred eighty-seven shall continue to
be  allocated  in  such  county and, provided further that up to seventy
megawatts of replacement power, up to thirty-eight and six-tenths  mega-
watts of preservation power from the Saint Lawrence-FDR project which is
relinquished  or  withdrawn  after  the  effective date of chapter three
hundred thirteen of the laws of two thousand  five  which  amended  this
subdivision  and,  for  the  period ending on December thirty-first, two
thousand six, up to twenty megawatts  of  other  power  from  the  Saint

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

                                                           LBD10545-10-9

S. 6913                             2                           A. 10002

Lawrence-FDR  project  which  is unallocated as of the effective date of
chapter three hundred thirteen of the laws of two  thousand  five  which
amended  this  subdivision, shall be allocated by the authority together
with such other funds of the authority as the trustees deem feasible and
advisable  for  energy  cost  savings  benefits AND FOR WESTERN NEW YORK
ECONOMIC DEVELOPMENT FUND BENEFITS pursuant to the twelfth  undesignated
paragraph  of  this  section.    Provided,  however,  that the amount of
replacement, preservation power, or the additional twenty  megawatts  of
Saint  Lawrence-FDR  power  for the period ending December thirty-first,
two thousand six made available for such purpose, used for  energy  cost
savings  benefits that are relinquished by or withdrawn from a recipient
thereof shall be offered by the authority proportionately for  a  period
of  six  months  for reallocation to applicants who qualify respectively
for replacement or preservation power allocations as  provided  in  this
subdivision.  If such power is not allocated within such period it shall
be allocated for the purpose of energy cost savings benefits pursuant to
subdivision (h) of section one  hundred  eighty-three  of  the  economic
development  law.  The authority shall negotiate contracts on reasonable
terms and conditions to renew or extend every permanent  contract  allo-
cation of expansion power in effect on the effective date of this subdi-
vision  and, to the extent consistent with such contracts, the authority
shall negotiate contracts on reasonable terms and conditions  to  extend
or  renew all other allocations or allotments of such power in effect on
such date.  The authority shall negotiate contracts on reasonable  terms
and  conditions  to  renew or extend for a period of at least five years
every permanent contract allocation of replacement power  in  effect  on
the  effective date of chapter three hundred thirteen of the laws of two
thousand five which added this sentence and that  would  expire  by  its
terms  on  or  before  the  end of the initial federal energy regulatory
commission license for the Niagara project; provided that, in  negotiat-
ing  the  terms  and  conditions  of  such  contracts, the authority may
consider a business'  compliance  with  all  current  contractual  obli-
gations,  including  employment  and  power usage commitments. Contracts
entered into pursuant  to  this  subdivision  shall  contain  reasonable
provisions providing for the partial or complete withdrawal of the power
in  the  event the recipient fails to maintain mutually agreed levels of
employment, investment, and power utilization. Expansion or  replacement
power  relinquished by businesses or withdrawn by the authority shall be
allocated directly or by sale for resale by the authority to  businesses
within  the  state  located  within  thirty miles of the Niagara project
provided, that the PROCEEDS FROM THE SALE OF SUCH UNALLOCATED AND  ALLO-
CATED, BUT RELINQUISHED OR WITHDRAWN OR CURRENTLY NOT ACCESSED EXPANSION
OR  REPLACEMENT  POWER, AS SHALL BE DETERMINED BY THE TRUSTEES, SHALL BE
ALLOCATED FOR THE PURPOSES OF WESTERN NEW YORK ECONOMIC DEVELOPMENT FUND
BENEFITS PURSUANT TO THE TWELFTH UNDESIGNATED PARAGRAPH OF THIS SECTION.
PROCEEDS TO SUCH WESTERN NEW YORK ECONOMIC DEVELOPMENT  FUND  SHALL  NOT
PRECLUDE THE AUTHORITY FROM ALLOCATING EXPANSION OR REPLACEMENT POWER TO
ELIGIBLE  COMPANIES UNDER THE PROVISIONS OF THIS SECTION.  THE amount of
power allocated to businesses in Chautauqua  county  on  January  first,
nineteen hundred eighty-seven shall be allocated in such county. Preser-
vation  power  that  is  relinquished  by businesses or withdrawn by the
authority shall be allocated directly or  by  sale  for  resale  by  the
authority within the counties of Jefferson, Saint Lawrence and Franklin.
Allocations  made pursuant to this paragraph shall be made in accordance
with criteria established by the trustees.  Such criteria shall  address
the  expansion  of  industry and employment pursuant to paragraph (a) of

S. 6913                             3                           A. 10002

this subdivision and the revitalization of existing industry pursuant to
paragraph (b) of this subdivision.
  S  2. The twelfth undesignated paragraph of section 1005 of the public
authorities law, as amended by section 7 of part U of chapter 59 of  the
laws of 2006, is amended to read as follows:
  The  authority  is  authorized  to allocate up to seventy megawatts of
unallocated power from the Niagara project sold prior to  the  effective
date  of  this  paragraph  as  replacement power, up to thirty-eight and
six-tenths megawatts of preservation power from the  Saint  Lawrence-FDR
project  which  is relinquished or withdrawn after the effective date of
this paragraph, and for the period ending on December thirty-first,  two
thousand  six,  up  to  an additional twenty megawatts of power from the
Saint Lawrence-FDR project which is unallocated as of the effective date
of this paragraph, for sale into the wholesale market, the net  earnings
from  which and such other funds of the authority as deemed feasible and
advisable by the trustees, shall be used for energy cost  savings  bene-
fits.  Such  energy cost savings benefits shall be made upon recommenda-
tion of the economic development power  allocation  board,  pursuant  to
subdivision  (h)  of  section  one  hundred eighty-three of the economic
development law. THE AUTHORITY IS  AUTHORIZED  TO  ALLOCATE  UNALLOCATED
EXPANSION  AND  REPLACEMENT  POWER  FROM THE NIAGARA PROJECT, AND RELIN-
QUISHED OR WITHDRAWN EXPANSION AND REPLACEMENT POWER, FOR SALE INTO  THE
WHOLESALE  MARKET,  THE  NET EARNINGS FROM WHICH AND SUCH OTHER FUNDS OF
THE AUTHORITY AS DEEMED FEASIBLE AND ADVISABLE BY THE TRUSTEES, SHALL BE
USED FOR WESTERN NEW YORK ECONOMIC DEVELOPMENT FUND BENEFITS. SUCH WEST-
ERN NEW YORK ECONOMIC DEVELOPMENT  FUND  BENEFITS  SHALL  BE  MADE  UPON
RECOMMENDATION  OF  THE  WESTERN NEW YORK ADVISORY GROUP, AS ESTABLISHED
UNDER "MEMORANDUM OF UNDERSTANDING REGARDING WESTERN NEW YORK  HYDROPOW-
ER"  AGREED  TO  BY THE AUTHORITY ON OCTOBER TWENTY-SECOND, TWO THOUSAND
THREE, PURSUANT TO SUBDIVISION (I) OF SECTION ONE  HUNDRED  EIGHTY-THREE
OF  THE  ECONOMIC  DEVELOPMENT  LAW. For purposes of this paragraph, the
term net earnings shall mean any excess of revenues earned from the sale
of such power allocated to the wholesale market  from  the  Niagara  and
Saint  Lawrence-FDR  projects  over  the  revenues  that would have been
received had such firm power been allocated and sold on a firm basis  by
the authority prior to the effective date of this paragraph.
  S  3. Section 183 of the economic development law is amended by adding
a new subdivision (i) to read as follows:
  (I) 1. THE WESTERN NEW YORK ADVISORY GROUP SHALL SOLICIT  APPLICATIONS
AND  MAKE  RECOMMENDATIONS  FOR  APPROVAL  OF  WESTERN NEW YORK ECONOMIC
DEVELOPMENT FUND BENEFITS IN AMOUNTS  MADE  AVAILABLE  PURSUANT  TO  THE
TWELFTH  UNDESIGNATED  PARAGRAPH  OF  SECTION  ONE  THOUSAND FIVE OF THE
PUBLIC AUTHORITIES LAW.
  2. ELIGIBLE PROJECTS SHALL INCLUDE PROJECTS PROPOSED BY ENTITIES  FROM
THE   PUBLIC,   PRIVATE  OR  NOT-FOR-PROFIT  SECTORS  LOCATED  WITHIN  A
THIRTY-MILE RADIUS OF THE NIAGARA POWER PLANT PROJECT  THAT  DEVELOP  OR
MANAGE  ECONOMIC  DEVELOPMENT PROJECTS THAT HAVE IDENTIFIED THE ULTIMATE
SITE OR USER OF SUCH  ECONOMIC  DEVELOPMENT  FUND  BENEFITS.    ELIGIBLE
PROJECTS  SHALL  BE PROPOSED BY ENTITIES THAT ARE CUSTOMERS SERVED UNDER
THE POWER AUTHORITY OF THE STATE OF NEW YORK'S HIGH LOAD FACTOR, ECONOM-
IC DEVELOPMENT POWER AND OTHER BUSINESS CUSTOMERS  SERVED  BY  POLITICAL
SUBDIVISIONS  OF  THE  STATE AUTHORIZED BY LAW TO ENGAGE IN THE DISTRIB-
UTION OF ELECTRIC POWER THAT WERE AUTHORIZED TO BE SERVED BY THE AUTHOR-
ITY'S FORMER JAMES A. FITZPATRICK NUCLEAR POWER PLANT.
  3. EACH APPLICATION FOR A WESTERN NEW YORK ECONOMIC  DEVELOPMENT  FUND
BENEFIT  SHALL  BE  EVALUATED  UNDER CRITERIA ADOPTED BY THE WESTERN NEW

S. 6913                             4                           A. 10002

YORK ADVISORY GROUP, 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 THROUGHOUT 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 A WESTERN NEW
YORK ECONOMIC DEVELOPMENT  FUND  BENEFIT,  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;
  (D) THE EXTENT TO WHICH A WESTERN NEW YORK ECONOMIC  DEVELOPMENT  FUND
BENEFIT  WILL  AFFECT THE OVERALL PRODUCTIVITY OR COMPETITIVENESS OF THE
APPLICANT'S BUSINESS AND ITS EXISTING EMPLOYMENT WITHIN THE STATE; AND
  (E) THE OVERALL IMPACT OF THE PROJECT IN TERMS OF THE ECONOMIC VIABIL-
ITY OF IDENTIFIED ULTIMATE SITE OR USER INCLUDING THE PROJECT'S  ABILITY
TO  INDUCE  ADDITIONAL  COMMERCIAL  ACTIVITY  ON THE SITE, REVITALIZE AN
URBAN AREA, AND ITS COMPLIANCE WITH REGIONAL DEVELOPMENT PLANS.
  4. APPLICATIONS FOR A WESTERN NEW YORK ECONOMIC DEVELOPMENT FUND BENE-
FIT SHALL BE IN THE FORM AND  CONTAIN  SUCH  INFORMATION,  EXHIBITS  AND
SUPPORTING  DATA  AS THE BOARD MAY PRESCRIBE. THE WESTERN NEW YORK ADVI-
SORY GROUP SHALL REVIEW THE APPLICATIONS RECEIVED  AND  SHALL  DETERMINE
THE  APPLICATIONS WHICH BEST MEET THE CRITERIA ESTABLISHED FOR THE BENE-
FITS PURSUANT TO THIS SUBDIVISION AND IT SHALL RECOMMEND  SUCH  APPLICA-
TIONS  TO  THE POWER AUTHORITY AND THE STATE OF NEW YORK WITH SUCH TERMS
AND CONDITIONS AS IT DEEMS APPROPRIATE.  SUCH TERMS AND CONDITIONS SHALL
INCLUDE REASONABLE PROVISIONS PROVIDING  FOR  THE  PARTIAL  OR  COMPLETE
WITHDRAWAL  OF THE WESTERN NEW YORK ECONOMIC DEVELOPMENT FUND BENEFIT IN
THE EVENT THAT THE RECIPIENT FAILS  TO  MAINTAIN  MUTUALLY  AGREED  UPON
COMMITMENTS  THAT  MAY  INCLUDE,  BUT ARE NOT LIMITED TO, INFRASTRUCTURE
PROJECT COMPLETION. RECOMMENDATION FOR APPROVAL OF A  WESTERN  NEW  YORK
ECONOMIC  DEVELOPMENT FUND BENEFIT SHALL QUALIFY AN APPLICANT TO RECEIVE
A WESTERN NEW YORK ECONOMIC DEVELOPMENT  FUND  BENEFIT  FROM  THE  POWER
AUTHORITY  OF THE STATE OF NEW YORK PURSUANT TO THE TERMS AND CONDITIONS
OF THE RECOMMENDATION.
  5. THE TRANSFER OF A WESTERN NEW YORK ECONOMIC DEVELOPMENT FUND  BENE-
FIT  SHALL BE PROHIBITED UNLESS SPECIFICALLY APPROVED BY THE WESTERN NEW
YORK ADVISORY GROUP AS CONSISTENT WITH THE CRITERIA ESTABLISHED PURSUANT
TO THIS PARAGRAPH. ANY  TRANSFER  WHICH  OCCURS  WITHOUT  SUCH  ADVISORY
GROUP'S  APPROVAL  SHALL  BE  INVALID  AND SUCH TRANSFER MAY SUBJECT THE
RECIPIENT TO REVOCATION OF ITS BENEFIT AND MODIFICATION OR REVOCATION OF
ITS CONTRACT.
  S 4. This act shall take effect immediately, provided that the  amend-
ments  to  section  183  of the economic development law made by section
three of this act shall not affect the expiration of  such  section  and
shall be deemed to expire therewith.

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Senate Bill S6913

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Sponsored By

William T. Stachowski