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

                                  8008

                            I N  S E N A T E

                              May 28, 2010
                               ___________

Introduced  by COMMITTEE ON RULES -- read twice and ordered printed, and
  when printed to be committed to the Committee on Energy and Telecommu-
  nications

AN ACT to amend the economic development 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 develop-
  ment; and to amend 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 expiration of the power for jobs program and
  the energy cost savings benefits program

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

  Section 1. 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] SIXTEENTH, two thousand ten eligible busi-
nesses shall only include customers served under the power authority  of
the state of New York's high load factor, economic development 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  effective
date  of  this subdivision whose power prices may be subject to increase
before June [second] SIXTEENTH, two  thousand  ten.  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relinquished  by  or  withdrawn  from  a recipient shall be deemed to be
relinquished or withdrawn for purposes of offering such megawatts by the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  avail-

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

                                                           LBD17578-01-0

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able  authority  resources as deemed feasible and advisable by the trus-
tees 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 thir-
tieth,  two  thousand nine through June [second] SIXTEENTH, two thousand
ten, the board shall expedite the awarding of such  benefits  and  shall
defer the review of compliance with such criteria until after the appli-
cant  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 energy 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  2.  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]  SIXTEENTH,  two  thousand ten. 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 deliv-
ery  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.
  S  3. 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

S. 8008                             3

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]  SIXTEENTH,  two thousand ten. 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  allo-
cated  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 expi-
ration, pending the filing and approval of an application by such recip-
ient 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 author-
ity  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] SIXTEENTH, two thousand ten.
  (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
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] SIXTEENTH, two thousand ten, the board shall
expedite the awarding of such reimbursements and/or extensions 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

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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]  SIXTEENTH,  two thousand ten. 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  4. 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] 16, 2010.
  S 5. 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] 16, 2010.
  S  6.  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  the amendments to sections 183 and 189 of the economic development
law made by sections one, two and three of this act shall not affect the
expiration of such sections and shall be deemed repealed therewith.