senate Bill S1056B

2011-2012 Legislative Session

Relates to the power authority of the state of New York and the public authorities control board

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 05, 2012 print number 1056b
Jan 05, 2012 amend and recommit to energy and telecommunications
Jan 04, 2012 referred to energy and telecommunications
Feb 22, 2011 print number 1056a
amend (t) and recommit to energy and telecommunications
Jan 05, 2011 referred to energy and telecommunications

Bill Amendments

Original
A
B (Active)
Original
A
B (Active)

Co-Sponsors

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S1056 - Bill Details

Current Committee:
Law Section:
Public Authorities Law
Laws Affected:
Amd §§51 & 1005, add §1855-a, Pub Auth L
Versions Introduced in 2009-2010 Legislative Session:
S1781

S1056 - Bill Texts

view summary

Relates to the power authority of the state of New York and the public authorities control board; prohibits the power authority from undertaking any project or sale of any asset exceeding one million dollars without the approval from the public authorities control board; provides for factors for such determination; creates a temporary special commission on the restructuring of the power authority of the state of New York; directs the New York state energy research and development authority to conduct studies related to the state's electric transmission system, the state's natural gas infrastructure and a comprehensive energy plan for the down state region of the state.

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BILL NUMBER:S1056

TITLE OF BILL:
An act
to amend the public authorities law, in relation to the power authority
of the state of New York and the public authorities control board,
and
in relation to directing the New York state energy research and
development authority to conduct studies related to the state's electric
transmission system, the state's natural gas infrastructure and a
comprehensive energy plan for the downstate region of the state

PURPOSE OR GENERAL IDEA OF BILL:
To make the Power
Authority of the State of New York (PASNY) subject to oversight by the
Public Authorities Control Board. And to establish a commission to study
the future role of PASNY in a deregulated electric industry. The bill
also directs the New York state energy research and development
authority to conduct studies related to the state's electric
transmission system, the state's natural gas infrastructure and a
comprehensive energy plan for the downstate region of the state.

SUMMARY OF SPECIFIC PROVISIONS:
This bill
amends section 51 and 1005 of the public authorities law and adds three
new sections 1855-a, 1855-b and 1855-c.

JUSTIFICATION:
In the past five years, the
electricity industry has undergone tremendous changes and currently
exposes utility customers to greatly increased risks associated with
price volatility without significant corresponding benefits. As a large
provider of electricity in this state, PASNY is also undergoing many
changes. PASNY has been directed by the administration to build 11
single cycle generators in and around the Metropolitan New York City
region. There was very limited public process involved in siting these
turbines, many of which were sited in low-income neighborhoods. They are
also proposing to build a 500 megawatt plant in Queens. Placing PASNY
under the Public Authorities Control Board places oversight and
establishing a commission to study the future role of PASNY will help
refocus PASNY's mission in a deregulated electricity marketplace. It is
also necessary to examine the problems surrounding the state's energy
infrastructure, including transmission, and natural gas transportation,
distribution and indigenous resources. It is also necessary to study
downstate, as it has experienced the greatest price spikes due to load
pockets and market forces, which has also affected the State's overall
whole electricity market.

PRIOR LEGISLATIVE HISTORY:
2009-10: S.1781 Referred to Energy & Telecommunications
2007-08: S.1985 Referred to Energy & Telecommunications
2006-07: S.1350 Referred to Energy & Telecommunications
2001-02: A.8979 Passed Assembly

FISCAL IMPLICATIONS:
To be determined.


EFFECTIVE DATE:
Immediately.

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

                                  1056

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 5, 2011
                               ___________

Introduced  by  Sens.  PARKER,  DIAZ,  DUANE, HASSELL-THOMPSON, KRUEGER,
  KRUGER, PERKINS, SAMPSON, SERRANO, STAVISKY -- read twice and  ordered
  printed,  and  when printed to be committed to the Committee on Energy
  and Telecommunications

AN ACT to amend the public authorities law, in  relation  to  the  power
  authority  of the state of New York and the public authorities control
  board, and in relation to directing the New York state energy research
  and development authority to conduct studies related  to  the  state's
  electric  transmission  system, the state's natural gas infrastructure
  and a comprehensive energy plan for the downstate region of the state

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

  Section  1.  Subdivision 1 of section 51 of the public authorities law
is amended by adding a new paragraph o to read as follows:
  O. POWER AUTHORITY OF THE STATE OF NEW YORK
  S 2. Section 1005 of the public authorities law is amended by adding a
new subdivision 11-a to read as follows:
  11-A. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY,  THE
AUTHORITY SHALL NOT UNDERTAKE ANY PROJECT OR SALE OF ANY ASSET EXCEEDING
ONE MILLION DOLLARS IN VALUE WITHOUT THE APPROVAL OF THE PUBLIC AUTHORI-
TIES  CONTROL  BOARD  CREATED PURSUANT TO ARTICLE ONE-A OF THIS CHAPTER.
EACH APPLICATION TO THE PUBLIC AUTHORITIES CONTROL BOARD SHALL CONTAIN A
PROJECT DESCRIPTION OR DESCRIPTION OF SALE AND AN EXPLANATION OF WHY THE
PROJECT OR SALE MEETS THE STANDARDS FOR PROJECT APPROVAL OR APPROVAL  OF
SALE SET FORTH IN THIS SUBDIVISION. THE PUBLIC AUTHORITIES CONTROL BOARD
SHALL  ONLY APPROVE A PROJECT OR SALE PROPOSED BY THE AUTHORITY UPON ITS
DETERMINATION THAT:
  A. THE PROJECT OR SALE IS FINANCIALLY  FEASIBLE  AS  THE  STANDARD  AS
DEFINED IN ARTICLE ONE-A OF THIS CHAPTER;

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02114-01-1

S. 1056                             2

  B.  THE  PROJECT  OR  SALE IS ANTICIPATED TO RESULT GENERALLY IN LOWER
UTILITY RATES IN THE STATE; AND
  C.  THE  PROJECT  OR SALE WILL NOT MATERIALLY ADVERSELY AFFECT OVERALL
REAL PROPERTY TAXES OR UTILITY RATES IN ANY AREAS OF THE  STATE  OF  NEW
YORK.
  S 3. Temporary special commission on restructuring the power authority
of  the state of New York. 1. There shall be a temporary special commis-
sion on restructuring the power authority of  the  state  of  New  York,
which  shall possess the powers and duties as specified in this section,
and also all powers necessary or proper to  enable  such  commission  to
carry  out  the  purposes  for  which  it  is established. The temporary
special commission shall consist of eight members as follows:    two  of
whom  shall be appointed by the governor, two of whom shall be appointed
by the temporary president of the senate, two of whom shall be appointed
by the speaker of the assembly, one of whom shall be  appointed  by  the
minority  leader of the senate and one of whom shall be appointed by the
minority leader of the assembly. Each member shall serve at the pleasure
of the respective appointing person.  One of the  members  appointed  by
the  governor shall be selected by the governor to serve as chair of the
temporary special commission. The temporary special commission shall  be
subject  to articles 6 and 7 of the public officers law.  Each member of
the temporary special commission shall be subject to the  provisions  of
article 4 of the public officers law.
  2. The temporary special commission on restructuring the power author-
ity of the state of New York shall have the power and duty to:
  (a)  conduct  hearings, discussions, and negotiations among members of
the public, affected businesses, and representatives of government; and
  (b) issue a final report to the  governor  and  legislature  detailing
recommendations on restructuring the power authority of the state of New
York,  including, but not limited to, the following issues: the divesti-
ture of  such  authority's  non-hydroelectric  generation  assets;  such
authority's  role  as  a transmission provider; such authority's role in
the power for jobs and economic development power programs; such author-
ity's energy efficiency programs; such  authority's  relationship  with,
and  obligation  to,  host  communities,  including, but not limited to,
payments-in-lieu of taxes to local municipalities and school  districts,
economic  development  investments,  and community revitalization initi-
atives; and such authority's role in a deregulated energy market. On  or
before  September  1, 2012 such commission shall transmit such report to
the governor, the speaker of the assembly, the minority  leader  of  the
assembly,  the temporary president of the senate, the minority leader of
the senate, the chairman of the assembly energy committee and the chair-
man of the senate energy and telecommunications committee.
  S 4. The public  authorities  law  is  amended  by  adding  three  new
sections 1855-a, 1855-b and 1855-c to read as follows:
  S  1855-A.  ELECTRIC  TRANSMISSION  CONGESTION STUDY. 1. THE AUTHORITY
SHALL UNDERTAKE A STUDY OF THE OVERALL ADEQUACY OF THE STATE'S  ELECTRIC
TRANSMISSION  SYSTEM. THE AUTHORITY MAY CONTRACT WITH AN INDEPENDENT AND
COMPETITIVELY SELECTED CONTRACTOR TO UNDERTAKE SUCH STUDY. THE AUTHORITY
SHALL PREPARE A REPORT ON ITS FINDINGS AND LEGISLATIVE  RECOMMENDATIONS.
ON  OR  BEFORE SEPTEMBER FIRST, TWO THOUSAND TWELVE, THE AUTHORITY SHALL
TRANSMIT SUCH REPORT TO THE GOVERNOR, THE  TEMPORARY  PRESIDENT  OF  THE
SENATE,  THE  SPEAKER OF THE ASSEMBLY, THE CHAIRMAN OF THE SENATE ENERGY
AND TELECOMMUNICATIONS COMMITTEE AND THE CHAIRMAN OF THE ASSEMBLY ENERGY
COMMITTEE.

S. 1056                             3

  2. THE STUDY SHALL INCLUDE, AT A MINIMUM, AN ASSESSMENT OF EACH OF THE
FOLLOWING:  THE CURRENT AND PROJECTED ADEQUACY OF  THE  ELECTRIC  TRANS-
MISSION  SYSTEM OVER THE TEN YEAR PERIOD BEGINNING ON THE EFFECTIVE DATE
OF THIS SECTION, WITH SPECIFIC FOCUS ON  SYSTEM  CONGESTION  WITHIN  THE
STATE.  THE  ASSESSMENT  SHALL  EXAMINE: (I) ADEQUACY OF TRANSMISSION IN
DENSELY POPULATED AREAS, INCLUDING LOAD  POCKETS;  (II)  THE  EXTENT  TO
WHICH TRANSMISSION CONGESTION IMPEDES THE DEVELOPMENT OF A FULLY COMPET-
ITIVE  WHOLESALE ELECTRICITY MARKET; (III) INVESTMENT IN INFRASTRUCTURE,
INCLUDING CAPITAL IMPROVEMENTS, EXPANSIONS, AND  MAINTENANCE;  (IV)  NEW
TRANSMISSION  TECHNOLOGIES  THAT  CAN INCREASE TRANSMISSION CAPABILITIES
OVER EXISTING FACILITIES, INCLUDING AN ASSESSMENT OF THE COSTS AND BENE-
FITS OF SUCH TECHNOLOGIES; AND (V)  WORKFORCE  ADEQUACY,  INCLUDING  THE
AVAILABILITY OF SKILLED LABORERS AND THE ADEQUACY OF SKILLS TRAINING AND
APPRENTICESHIP PROGRAMS.
  3.  THE  AUTHORITY SHALL CONSULT WITH ENTITIES THAT HAVE RESOURCES AND
EXPERTISE TO ASSIST IN SUCH INVESTIGATION,  INCLUDING  THE  LONG  ISLAND
POWER  AUTHORITY,  THE  POWER  AUTHORITY  OF  THE STATE OF NEW YORK, THE
DEPARTMENT OF PUBLIC SERVICE, AND THE MEMBERS OF THE NEW YORK POWER POOL
OR ITS SUCCESSOR OR SUCCESSORS.
  S 1855-B. NATURAL GAS SUPPLY AND INFRASTRUCTURE STUDY. 1. THE AUTHORI-
TY SHALL UNDERTAKE A STUDY OF ISSUES, INCLUDING BUT NOT LIMITED  TO  THE
SUPPLY,  TRANSPORTATION,  PIPELINE CAPACITY, DISTRIBUTION AND STORAGE OF
NATURAL GAS IN NEW YORK STATE. THE AUTHORITY MAY CONTRACT WITH AN  INDE-
PENDENT  AND  COMPETITIVELY SELECTED CONTRACTOR TO UNDERTAKE SUCH STUDY.
THE AUTHORITY SHALL PREPARE A REPORT ON  ITS  FINDINGS  AND  LEGISLATIVE
RECOMMENDATIONS.  ON OR BEFORE SEPTEMBER FIRST, TWO THOUSAND TWELVE, THE
AUTHORITY SHALL TRANSMIT SUCH REPORT  TO  THE  GOVERNOR,  THE  TEMPORARY
PRESIDENT  OF  THE  SENATE, THE SPEAKER OF THE ASSEMBLY, THE CHAIRMAN OF
THE SENATE ENERGY AND TELECOMMUNICATIONS COMMITTEE AND THE  CHAIRMAN  OF
THE ASSEMBLY ENERGY COMMITTEE.
  2. THE STUDY SHALL INCLUDE, AT A MINIMUM, AN ASSESSMENT OF EACH OF THE
FOLLOWING:
  (A)  CURRENT  UTILITY  PRACTICES IN PROCURING THE COMMODITY OF NATURAL
GAS AND A COMPARISON, BY UTILITY TERRITORY IN THE STATE, OF  IMPACTS  ON
RATES  FOR  END-USE CUSTOMERS; (B) THE CURRENT AND PROJECTED ADEQUACY OF
THE  NATURAL  GAS  INFRASTRUCTURE,  INCLUDING  TRANSPORTATION,  PIPELINE
CAPACITY,  DISTRIBUTION  AND  STORAGE IN NEW YORK STATE; (C) ADEQUACY OF
TRANSPORTATION AND DISTRIBUTION IN DENSELY POPULATED AREAS OF THE  STATE
AND  IN  RURAL  AREAS  OF  THE  STATE; (D) INVESTMENT IN INFRASTRUCTURE,
INCLUDING CAPITAL IMPROVEMENTS, UTILIZATION OF  NEW  TECHNOLOGY,  EXPAN-
SIONS,  AND MAINTENANCE; (E) THE ADEQUACY OF TRANSPORTATION AND DISTRIB-
UTION INFRASTRUCTURE IN AREAS WHERE NATURAL GAS FUELED ELECTRIC GENERAT-
ING PLANTS ARE PROPOSED; (F) INDIGENOUS SOURCES OF NATURAL  GAS  IN  THE
STATE;  (G)  WORKFORCE  ADEQUACY,  INCLUDING THE AVAILABILITY OF SKILLED
LABORERS  AND  THE  ADEQUACY  OF  SKILLS  TRAINING  AND   APPRENTICESHIP
PROGRAMS;  AND  (H)  THE  POTENTIAL IMPACT OF DISTRIBUTED GENERATION AND
COMBINED HEAT AND  POWER  SYSTEMS  ON  NATURAL  GAS  TRANSPORTATION  AND
DISTRIBUTION SYSTEM ADEQUACY.
  S  1855-C.  COMPREHENSIVE ENERGY MANAGEMENT PLAN.  1. THE AUTHORITY IS
HEREBY AUTHORIZED AND DIRECTED  TO  CONDUCT  A  COMPREHENSIVE  STUDY  TO
ANALYZE  THE  ELECTRICITY AND STEAM CAPACITY AND POWER DISTRIBUTION GRID
CONDITIONS IN THE DOWNSTATE REGION OF THE STATE.  FOR PURPOSES  OF  THIS
SECTION,  "DOWNSTATE"  SHALL  BE DEFINED AS THAT REGION LOCATED SOUTH OF
THE MILLWOOD - SOUTH TRANSMISSION INTERFACE.  SUCH STUDY SHALL  INCLUDE,
BUT SHALL NOT BE LIMITED TO:

S. 1056                             4

  (A)  AN  ANALYSIS OF PROJECTED POWER NEEDS AND AN ASSESSMENT OF EXIST-
ING:
  (I) GENERATING FACILITIES WITH A CAPACITY OF TWENTY MEGAWATTS OR MORE;
  (II) POWER GRID CAPACITY AND LOAD POCKETS;
  (III) NATURAL GAS AND OTHER FUEL SOURCE CAPACITY;
  (IV) SUBSTATION TRANSFORMERS; AND
  (V) EMERGENCY GENERATORS;
  (B) AN ANALYSIS OF FUTURE POWER NEEDS;
  (C) AN ENVIRONMENTAL ASSESSMENT OF GENERATING FACILITIES WITH A CAPAC-
ITY OF TWENTY MEGAWATTS OR MORE, INCLUDING BUT NOT LIMITED TO:
  (I) EMISSIONS;
  (II) WATER IMPACTS;
  (III) LAND USE IMPACTS;
  (IV) TRAFFIC IMPACTS; AND
  (V) NOISE IMPACTS;
  (D) THE IDENTIFICATION OF AREAS OF OVERSATURATION OF POWER FACILITIES;
AND
  (E) AN ASSESSMENT OF ALTERNATIVES, SUCH AS:
  (I) ENERGY EFFICIENCY;
  (II) LOAD CURTAILMENT;
  (III) CLEAN DISTRIBUTED GENERATION; AND
  (IV) CO-GENERATION.
  2.  THE  AUTHORITY  SHALL SUBMIT A COPY OF SUCH STUDY TO THE GOVERNOR,
THE TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY,  THE
CHAIRMAN  OF  THE SENATE ENERGY AND TELECOMMUNICATIONS COMMITTEE AND THE
CHAIRMAN OF THE ASSEMBLY ENERGY COMMITTEE NO LATER THAN  JANUARY  FIRST,
TWO THOUSAND TWELVE.
  3.  UPON COMPLETION OF THE STUDY CONDUCTED PURSUANT TO SUBDIVISION ONE
OF THIS SECTION, THE AUTHORITY SHALL DEVELOP  AN  OVERALL  COMPREHENSIVE
ENERGY  MANAGEMENT PLAN.   SUCH PLAN SHALL TAKE INTO ACCOUNT THE RESULTS
AND FINDINGS OF SUCH STUDY, AND SHALL INCLUDE, BUT SHALL NOT BE  LIMITED
TO THE FOLLOWING:
  (A) AN OUTLINE OF GUIDELINES AND REQUIREMENTS FOR SITING POWER PLANTS;
  (B)  THE  RESEARCH OF POTENTIAL SITES FOR FUTURE POWER PLANT LOCATIONS
THAT MEET THE GUIDELINES AND REQUIREMENTS ESTABLISHED PURSUANT TO  PARA-
GRAPH  (A) OF THIS SUBDIVISION AND ARE NOT LOCATED IN AREAS OF OVERSATU-
RATION;
  (C) AN IDENTIFICATION OF EXISTING PLANTS THAT SHOULD BE  TARGETED  FOR
RE-POWERING WITH MORE EFFICIENT GENERATORS; AND
  (D) A REQUIREMENT THAT AT LEAST TWO PUBLIC HEARINGS BE HELD WITHIN THE
DOWNSTATE  REGION  DESCRIBED  IN  SUBDIVISION ONE OF THIS SECTION WITHIN
SIXTY DAYS OF THE PUBLICATION  OF  SUCH  MANAGEMENT  PLAN,  AND  PROVIDE
ADEQUATE OPPORTUNITY FOR WRITTEN TESTIMONY REGARDING SUCH PLAN.
  4.  THE  AUTHORITY  SHALL SUBMIT A COPY OF SUCH MANAGEMENT PLAN TO THE
GOVERNOR, THE TEMPORARY PRESIDENT OF THE  SENATE,  THE  SPEAKER  OF  THE
ASSEMBLY,  THE  CHAIRMAN  OF  THE  SENATE  ENERGY AND TELECOMMUNICATIONS
COMMITTEE AND THE CHAIRMAN OF THE ASSEMBLY  ENERGY  COMMITTEE  NO  LATER
THAN SEPTEMBER FIRST, TWO THOUSAND TWELVE.
  S 5. This act shall take effect immediately.

Co-Sponsors

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S1056A - Bill Details

Current Committee:
Law Section:
Public Authorities Law
Laws Affected:
Amd §§51 & 1005, add §1855-a, Pub Auth L
Versions Introduced in 2009-2010 Legislative Session:
S1781

S1056A - Bill Texts

view summary

Relates to the power authority of the state of New York and the public authorities control board; prohibits the power authority from undertaking any project or sale of any asset exceeding one million dollars without the approval from the public authorities control board; provides for factors for such determination; creates a temporary special commission on the restructuring of the power authority of the state of New York; directs the New York state energy research and development authority to conduct studies related to the state's electric transmission system, the state's natural gas infrastructure and a comprehensive energy plan for the down state region of the state.

view sponsor memo
BILL NUMBER:S1056A

TITLE OF BILL:
An act
to amend the public authorities law, in relation to the power authority
of the state of New York and the public authorities control board,
and
in relation to directing the New York state energy research and
development authority to conduct studies related to the state's electric
transmission system, the state's natural gas infrastructure and a
comprehensive energy plan for the downstate region of the state

PURPOSE OR GENERAL IDEA OF BILL:
To make the Power
Authority of the State of New York (PASNY) subject to oversight by the
Public Authorities Control Board. And to establish a commission to study
the future role of PASNY in a deregulated electric industry. The bill
also directs the New York state energy research and development
authority to conduct studies related to the state's electric
transmission system, the state's natural gas infrastructure and a
comprehensive energy plan for the downstate region of the state.

SUMMARY OF SPECIFIC PROVISIONS:
This bill
amends section 51 and 1005 of the public authorities law and adds three
new sections 1855-a, 1855-b and 1855-c.

JUSTIFICATION:
In the past five years, the
electricity industry has undergone tremendous changes and currently
exposes utility customers to greatly increased risks associated with
price volatility without significant corresponding benefits. As a large
provider of electricity in this state, PASNY is also undergoing many
changes. PASNY has been directed by the administration to build 11
single cycle generators in and around the Metropolitan New York City
region. There was very limited public process involved in siting these
turbines, many of which were sited in low-income neighborhoods. They are
also proposing to build a 500 megawatt plant in Queens. Placing PASNY
under the Public Authorities Control Board places oversight and
establishing a commission to study the future role of PASNY will help
refocus PASNY's mission in a deregulated electricity marketplace. It is
also necessary to examine the problems surrounding the state's energy
infrastructure, including transmission, and natural gas transportation,
distribution and indigenous resources. It is also necessary to study
downstate, as it has experienced the greatest price spikes due to load
pockets and market forces, which has also affected the State's overall
whole electricity market.

PRIOR LEGISLATIVE HISTORY:

2009-10: S.1781 Referred to Energy and Telecommunications
2007-08: S.1985 Referred to Energy and Telecommunications
2006-07: S.1350 Referred to Energy and Telecommunications

FISCAL IMPLICATIONS:
To be determined.

EFFECTIVE DATE:
Immediately.

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

                                 1056--A

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 5, 2011
                               ___________

Introduced  by  Sens.  PARKER,  DIAZ,  DUANE, HASSELL-THOMPSON, KRUEGER,
  KRUGER, PERKINS, SAMPSON, SERRANO, STAVISKY -- read twice and  ordered
  printed,  and  when printed to be committed to the Committee on Energy
  and Telecommunications -- committee discharged, bill amended,  ordered
  reprinted as amended and recommitted to said committee

AN  ACT  to  amend  the public authorities law, in relation to the power
  authority of the state of New York and the public authorities  control
  board, and in relation to directing the New York state energy research
  and  development  authority  to conduct a study related to the state's
  natural gas infrastructure

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

  Section  1.  Subdivision 1 of section 51 of the public authorities law
is amended by adding a new paragraph o to read as follows:
  O. POWER AUTHORITY OF THE STATE OF NEW YORK
  S 2. Section 1005 of the public authorities law is amended by adding a
new subdivision 11-a to read as follows:
  11-A. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY,  THE
AUTHORITY SHALL NOT UNDERTAKE ANY PROJECT OR SALE OF ANY ASSET EXCEEDING
ONE MILLION DOLLARS IN VALUE WITHOUT THE APPROVAL OF THE PUBLIC AUTHORI-
TIES  CONTROL  BOARD  CREATED PURSUANT TO ARTICLE ONE-A OF THIS CHAPTER.
EACH APPLICATION TO THE PUBLIC AUTHORITIES CONTROL BOARD SHALL CONTAIN A
PROJECT DESCRIPTION OR DESCRIPTION OF SALE AND AN EXPLANATION OF WHY THE
PROJECT OR SALE MEETS THE STANDARDS FOR PROJECT APPROVAL OR APPROVAL  OF
SALE SET FORTH IN THIS SUBDIVISION. THE PUBLIC AUTHORITIES CONTROL BOARD
SHALL  ONLY APPROVE A PROJECT OR SALE PROPOSED BY THE AUTHORITY UPON ITS
DETERMINATION THAT:
  A. THE PROJECT OR SALE IS FINANCIALLY  FEASIBLE  AS  THE  STANDARD  AS
DEFINED IN ARTICLE ONE-A OF THIS CHAPTER;

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02114-02-1

S. 1056--A                          2

  B.  THE  PROJECT  OR  SALE IS ANTICIPATED TO RESULT GENERALLY IN LOWER
UTILITY RATES IN THE STATE; AND
  C.  THE  PROJECT  OR SALE WILL NOT MATERIALLY ADVERSELY AFFECT OVERALL
REAL PROPERTY TAXES OR UTILITY RATES IN ANY AREAS OF THE  STATE  OF  NEW
YORK.
  S 3. Temporary special commission on restructuring the power authority
of  the state of New York. 1. There shall be a temporary special commis-
sion on restructuring the power authority of  the  state  of  New  York,
which  shall possess the powers and duties as specified in this section,
and also all powers necessary or proper to  enable  such  commission  to
carry  out  the  purposes  for  which  it  is established. The temporary
special commission shall consist of eight members as follows:    two  of
whom  shall be appointed by the governor, two of whom shall be appointed
by the temporary president of the senate, two of whom shall be appointed
by the speaker of the assembly, one of whom shall be  appointed  by  the
minority  leader of the senate and one of whom shall be appointed by the
minority leader of the assembly. Each member shall serve at the pleasure
of the respective appointing person.  One of the  members  appointed  by
the  governor shall be selected by the governor to serve as chair of the
temporary special commission. The temporary special commission shall  be
subject  to articles 6 and 7 of the public officers law.  Each member of
the temporary special commission shall be subject to the  provisions  of
article 4 of the public officers law.
  2. The temporary special commission on restructuring the power author-
ity of the state of New York shall have the power and duty to:
  (a)  conduct  hearings, discussions, and negotiations among members of
the public, affected businesses, and representatives of government; and
  (b) issue a final report to the  governor  and  legislature  detailing
recommendations on restructuring the power authority of the state of New
York,  including, but not limited to, the following issues: the divesti-
ture of  such  authority's  non-hydroelectric  generation  assets;  such
authority's  role  as  a transmission provider; such authority's role in
the power for jobs and economic development power programs; such author-
ity's energy efficiency programs; such  authority's  relationship  with,
and  obligation  to,  host  communities,  including, but not limited to,
payments-in-lieu of taxes to local municipalities and school  districts,
economic  development  investments,  and community revitalization initi-
atives; and such authority's role in a deregulated energy market. On  or
before  September  1, 2012 such commission shall transmit such report to
the governor, the speaker of the assembly, the minority  leader  of  the
assembly,  the temporary president of the senate, the minority leader of
the senate, the chairman of the assembly energy committee and the chair-
man of the senate energy and telecommunications committee.
  S 4. The public authorities law is amended by  adding  a  new  section
1855-a to read as follows:
  S 1855-A. NATURAL GAS SUPPLY AND INFRASTRUCTURE STUDY. 1. THE AUTHORI-
TY  SHALL  UNDERTAKE A STUDY OF ISSUES, INCLUDING BUT NOT LIMITED TO THE
SUPPLY, TRANSPORTATION, PIPELINE CAPACITY, DISTRIBUTION AND  STORAGE  OF
NATURAL  GAS IN NEW YORK STATE. THE AUTHORITY MAY CONTRACT WITH AN INDE-
PENDENT AND COMPETITIVELY SELECTED CONTRACTOR TO UNDERTAKE  SUCH  STUDY.
THE  AUTHORITY  SHALL  PREPARE  A REPORT ON ITS FINDINGS AND LEGISLATIVE
RECOMMENDATIONS. ON OR BEFORE SEPTEMBER FIRST, TWO THOUSAND TWELVE,  THE
AUTHORITY  SHALL  TRANSMIT  SUCH  REPORT  TO THE GOVERNOR, THE TEMPORARY
PRESIDENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY,  THE  CHAIRMAN  OF
THE  SENATE  ENERGY AND TELECOMMUNICATIONS COMMITTEE AND THE CHAIRMAN OF
THE ASSEMBLY ENERGY COMMITTEE.

S. 1056--A                          3

  2. THE STUDY SHALL INCLUDE, AT A MINIMUM, AN ASSESSMENT OF EACH OF THE
FOLLOWING:
  (A)  CURRENT  UTILITY  PRACTICES IN PROCURING THE COMMODITY OF NATURAL
GAS AND A COMPARISON, BY UTILITY TERRITORY IN THE STATE, OF  IMPACTS  ON
RATES  FOR  END-USE CUSTOMERS; (B) THE CURRENT AND PROJECTED ADEQUACY OF
THE  NATURAL  GAS  INFRASTRUCTURE,  INCLUDING  TRANSPORTATION,  PIPELINE
CAPACITY,  DISTRIBUTION  AND  STORAGE IN NEW YORK STATE; (C) ADEQUACY OF
TRANSPORTATION AND DISTRIBUTION IN DENSELY POPULATED AREAS OF THE  STATE
AND  IN  RURAL  AREAS  OF  THE  STATE; (D) INVESTMENT IN INFRASTRUCTURE,
INCLUDING CAPITAL IMPROVEMENTS, UTILIZATION OF  NEW  TECHNOLOGY,  EXPAN-
SIONS,  AND MAINTENANCE; (E) THE ADEQUACY OF TRANSPORTATION AND DISTRIB-
UTION INFRASTRUCTURE IN AREAS WHERE NATURAL GAS FUELED ELECTRIC GENERAT-
ING PLANTS ARE PROPOSED; (F) INDIGENOUS SOURCES OF NATURAL  GAS  IN  THE
STATE;  (G)  WORKFORCE  ADEQUACY,  INCLUDING THE AVAILABILITY OF SKILLED
LABORERS  AND  THE  ADEQUACY  OF  SKILLS  TRAINING  AND   APPRENTICESHIP
PROGRAMS;  AND  (H)  THE  POTENTIAL IMPACT OF DISTRIBUTED GENERATION AND
COMBINED HEAT AND  POWER  SYSTEMS  ON  NATURAL  GAS  TRANSPORTATION  AND
DISTRIBUTION SYSTEM ADEQUACY.
  S 5. This act shall take effect immediately.

Co-Sponsors

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S1056B (ACTIVE) - Bill Details

Current Committee:
Law Section:
Public Authorities Law
Laws Affected:
Amd §§51 & 1005, add §1855-a, Pub Auth L
Versions Introduced in 2009-2010 Legislative Session:
S1781

S1056B (ACTIVE) - Bill Texts

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Relates to the power authority of the state of New York and the public authorities control board; prohibits the power authority from undertaking any project or sale of any asset exceeding one million dollars without the approval from the public authorities control board; provides for factors for such determination; creates a temporary special commission on the restructuring of the power authority of the state of New York; directs the New York state energy research and development authority to conduct studies related to the state's electric transmission system, the state's natural gas infrastructure and a comprehensive energy plan for the down state region of the state.

view sponsor memo
BILL NUMBER:S1056B

TITLE OF BILL:
An act
to amend the public authorities law, in relation to the power authority
of the state of New York and the public authorities control board,
and
in relation to directing the New York state energy research and
development authority to conduct a study
related to the state's natural gas infrastructure

PURPOSE OR GENERAL IDEA OF BILL:
To make the Power Authority of the state of New York (PASNY) subject
to oversight by the public Authorities Control Board. And to
establish a commission to study the future role of PASNY in a
deregulated electric industry. The bill also directs the New York
state energy research and development authority to conduct studies
related to the state's electric transmission system, the state's
natural gas infrastructure and a comprehensive energy plan for the
downstate region of the state.

SUMMARY OF SPECIFIC PROVISIONS:
This bill amends section 51 and 1005 of the public authorities law and
adds three new sections 1855-a.

JUSTIFICATION:
The electricity industry has undergone tremendous changes and
currently exposes utility customers to greatly increased risks
associated with price volatility without significant corresponding
benefits. PASNY was directed to build 11 single cycle generators in
and around the Metropolitan New York City region. There was very
limited public process involved in siting these turbines, many of
which were sited in low-income neighborhoods.

Placing PASNY under the public Authorities Control Board provides
oversight and establishing a commission to study the future role of
PASNY will help refocus PASNY's mission in a deregulated electricity
marketplace. It is necessary to examine the problems surrounding the
state's energy infrastructure, including transmission, and natural
gas transportation, distribution and indigenous resources.

It is also necessary to study downstate, as it has experienced the
greatest price spikes due to load pockets and market forces, which
has also affected the State's overall whole electricity market.

PRIOR LEGISLATIVE HISTORY:

2009-10: S.1781 Referred to Energy and Telecommunications
2007-08: S.1985 Referred to Energy and Telecommunications
2006-07: S.1350 Referred to Energy and Telecommunications

FISCAL IMPLICATIONS:
To be determined.

EFFECTIVE DATE:
Immediately.


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

                                 1056--B

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 5, 2011
                               ___________

Introduced  by  Sens.  PARKER,  DIAZ,  DUANE, HASSELL-THOMPSON, KRUEGER,
  PERKINS, SAMPSON, SERRANO, STAVISKY -- read twice and ordered printed,
  and when printed to be committed to the Committee on Energy and  Tele-
  communications   --   committee   discharged,  bill  amended,  ordered
  reprinted as amended and recommitted to said committee --  recommitted
  to  the  Committee on Energy and Telecommunications in accordance with
  Senate Rule 6, sec. 8 -- committee discharged, bill  amended,  ordered
  reprinted as amended and recommitted to said committee

AN  ACT  to  amend  the public authorities law, in relation to the power
  authority of the state of New York and the public authorities  control
  board, and in relation to directing the New York state energy research
  and  development  authority  to conduct a study related to the state's
  natural gas infrastructure

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

  Section  1.  Subdivision 1 of section 51 of the public authorities law
is amended by adding a new paragraph o to read as follows:
  O. POWER AUTHORITY OF THE STATE OF NEW YORK
  S 2. Section 1005 of the public authorities law is amended by adding a
new subdivision 11-a to read as follows:
  11-A. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY,  THE
AUTHORITY SHALL NOT UNDERTAKE ANY PROJECT OR SALE OF ANY ASSET EXCEEDING
ONE MILLION DOLLARS IN VALUE WITHOUT THE APPROVAL OF THE PUBLIC AUTHORI-
TIES  CONTROL  BOARD  CREATED PURSUANT TO ARTICLE ONE-A OF THIS CHAPTER.
EACH APPLICATION TO THE PUBLIC AUTHORITIES CONTROL BOARD SHALL CONTAIN A
PROJECT DESCRIPTION OR DESCRIPTION OF SALE AND AN EXPLANATION OF WHY THE
PROJECT OR SALE MEETS THE STANDARDS FOR PROJECT APPROVAL OR APPROVAL  OF
SALE SET FORTH IN THIS SUBDIVISION. THE PUBLIC AUTHORITIES CONTROL BOARD
SHALL  ONLY APPROVE A PROJECT OR SALE PROPOSED BY THE AUTHORITY UPON ITS
DETERMINATION THAT:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02114-03-2

S. 1056--B                          2

  A. THE PROJECT OR SALE IS FINANCIALLY  FEASIBLE  AS  THE  STANDARD  AS
DEFINED IN ARTICLE ONE-A OF THIS CHAPTER;
  B.  THE  PROJECT  OR  SALE IS ANTICIPATED TO RESULT GENERALLY IN LOWER
UTILITY RATES IN THE STATE; AND
  C. THE PROJECT OR SALE WILL NOT MATERIALLY  ADVERSELY  AFFECT  OVERALL
REAL  PROPERTY  TAXES  OR UTILITY RATES IN ANY AREAS OF THE STATE OF NEW
YORK.
  S 3. Temporary special commission on restructuring the power authority
of the state of New York. 1. There shall be a temporary special  commis-
sion  on  restructuring  the  power  authority of the state of New York,
which shall possess the powers and duties as specified in this  section,
and  also  all  powers  necessary or proper to enable such commission to
carry out the purposes  for  which  it  is  established.  The  temporary
special  commission  shall  consist of eight members as follows:  two of
whom shall be appointed by the governor, two of whom shall be  appointed
by the temporary president of the senate, two of whom shall be appointed
by  the  speaker  of the assembly, one of whom shall be appointed by the
minority leader of the senate and one of whom shall be appointed by  the
minority leader of the assembly. Each member shall serve at the pleasure
of  the  respective appointing person.   One of the members appointed by
the governor shall be selected by the governor to serve as chair of  the
temporary  special commission. The temporary special commission shall be
subject to articles 6 and 7 of the public officers law.  Each member  of
the  temporary  special commission shall be subject to the provisions of
article 4 of the public officers law.
  2. The temporary special commission on restructuring the power author-
ity of the state of New York shall have the power and duty to:
  (a) conduct hearings, discussions, and negotiations among  members  of
the public, affected businesses, and representatives of government; and
  (b)  issue  a  final  report to the governor and legislature detailing
recommendations on restructuring the power authority of the state of New
York, including, but not limited to, the following issues: the  divesti-
ture  of  such  authority's  non-hydroelectric  generation  assets; such
authority's role as a transmission provider; such  authority's  role  in
the power for jobs and economic development power programs; such author-
ity's  energy  efficiency  programs; such authority's relationship with,
and obligation to, host communities,  including,  but  not  limited  to,
payments-in-lieu  of taxes to local municipalities and school districts,
economic development investments, and  community  revitalization  initi-
atives;  and such authority's role in a deregulated energy market. On or
before September 1, 2013 such commission shall transmit such  report  to
the  governor,  the  speaker of the assembly, the minority leader of the
assembly, the temporary president of the senate, the minority leader  of
the senate, the chairman of the assembly energy committee and the chair-
man of the senate energy and telecommunications committee.
  S  4.  The  public  authorities law is amended by adding a new section
1855-a to read as follows:
  S 1855-A. NATURAL GAS SUPPLY AND INFRASTRUCTURE STUDY. 1. THE AUTHORI-
TY SHALL UNDERTAKE A STUDY OF ISSUES, INCLUDING BUT NOT LIMITED  TO  THE
SUPPLY,  TRANSPORTATION,  PIPELINE CAPACITY, DISTRIBUTION AND STORAGE OF
NATURAL GAS IN NEW YORK STATE. THE AUTHORITY MAY CONTRACT WITH AN  INDE-
PENDENT  AND  COMPETITIVELY SELECTED CONTRACTOR TO UNDERTAKE SUCH STUDY.
THE AUTHORITY SHALL PREPARE A REPORT ON  ITS  FINDINGS  AND  LEGISLATIVE
RECOMMENDATIONS.  ON  OR  BEFORE SEPTEMBER FIRST, TWO THOUSAND THIRTEEN,
THE AUTHORITY SHALL TRANSMIT SUCH REPORT TO THE GOVERNOR, THE  TEMPORARY
PRESIDENT  OF  THE  SENATE, THE SPEAKER OF THE ASSEMBLY, THE CHAIRMAN OF

S. 1056--B                          3

THE SENATE ENERGY AND TELECOMMUNICATIONS COMMITTEE AND THE  CHAIRMAN  OF
THE ASSEMBLY ENERGY COMMITTEE.
  2. THE STUDY SHALL INCLUDE, AT A MINIMUM, AN ASSESSMENT OF EACH OF THE
FOLLOWING:
  (A)  CURRENT  UTILITY  PRACTICES IN PROCURING THE COMMODITY OF NATURAL
GAS AND A COMPARISON, BY UTILITY TERRITORY IN THE STATE, OF  IMPACTS  ON
RATES  FOR  END-USE CUSTOMERS; (B) THE CURRENT AND PROJECTED ADEQUACY OF
THE  NATURAL  GAS  INFRASTRUCTURE,  INCLUDING  TRANSPORTATION,  PIPELINE
CAPACITY,  DISTRIBUTION  AND  STORAGE IN NEW YORK STATE; (C) ADEQUACY OF
TRANSPORTATION AND DISTRIBUTION IN DENSELY POPULATED AREAS OF THE  STATE
AND  IN  RURAL  AREAS  OF  THE  STATE; (D) INVESTMENT IN INFRASTRUCTURE,
INCLUDING CAPITAL IMPROVEMENTS, UTILIZATION OF  NEW  TECHNOLOGY,  EXPAN-
SIONS,  AND MAINTENANCE; (E) THE ADEQUACY OF TRANSPORTATION AND DISTRIB-
UTION INFRASTRUCTURE IN AREAS WHERE NATURAL GAS FUELED ELECTRIC GENERAT-
ING PLANTS ARE PROPOSED; (F) INDIGENOUS SOURCES OF NATURAL  GAS  IN  THE
STATE;  (G)  WORKFORCE  ADEQUACY,  INCLUDING THE AVAILABILITY OF SKILLED
LABORERS  AND  THE  ADEQUACY  OF  SKILLS  TRAINING  AND   APPRENTICESHIP
PROGRAMS;  AND  (H)  THE  POTENTIAL IMPACT OF DISTRIBUTED GENERATION AND
COMBINED HEAT AND  POWER  SYSTEMS  ON  NATURAL  GAS  TRANSPORTATION  AND
DISTRIBUTION SYSTEM ADEQUACY.
  S 5. This act shall take effect immediately.

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