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Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
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|---|---|
| Jan 04, 2012 |
referred to energy and telecommunications returned to senate died in assembly |
| Mar 09, 2011 |
referred to energy |
| Mar 08, 2011 |
delivered to assembly passed senate ordered to third reading cal.164 reported and committed to rules |
| Mar 01, 2011 |
reported and committed to finance |
| Feb 10, 2011 |
referred to energy and telecommunications |
Senate Bill S3164
2011-2012 Legislative Session
Creates the recharge New York power program, extends the expiration of the power for jobs program and energy cost savings benefit program, authorizes contributions
download bill text pdfSponsored By
(R) Senate District
Archive: Last Bill Status - In Senate Committee Energy And Telecommunications 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
Actions
Votes
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-
-
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Floor Vote: Mar 8, 2011
aye (62)- Adams
- Addabbo Jr.
- Alesi
- Avella
- Ball
- Bonacic
- Breslin
- Carlucci
- DeFrancisco
- Diaz
- Dilan
- Duane
- Espaillat
- Farley
- Flanagan
- Fuschillo
- Gallivan
- Gianaris
- Golden
- Griffo
- Grisanti
- Hannon
- Hassell-Thompson
- Huntley
- Johnson
- Kennedy
- Klein
- Krueger
- Kruger
- LaValle
- Lanza
- Larkin
- Libous
- Little
- Marcellino
- Martins
- Maziarz
- McDonald
- Montgomery
- Nozzolio
- O'Mara
- Oppenheimer
- Parker
- Peralta
- Perkins
- Ranzenhofer
- Ritchie
- Rivera
- Robach
- Saland
- Sampson
- Savino
- Serrano
- Seward
- Skelos
- Smith
- Squadron
- Stavisky
- Stewart-Cousins
- Valesky
- Young
- Zeldin
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Mar 8, 2011 - Rules Committee Vote
S316423Aye0Nay1Aye with Reservations0Absent0Excused0AbstainedMar 8, 2011 - Finance Committee Vote
S316431Aye0Nay3Aye with Reservations0Absent0Excused0Abstained-
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Finance Committee Vote: Mar 8, 2011
aye (31)
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Mar 1, 2011 - Energy And Telecommunications Committee Vote
S316411Aye0Nay1Aye with Reservations0Absent0Excused0Abstained -
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co-Sponsors
(D) Senate District
(D, WF) Senate District
(R, C) 60th Senate District
(R, C) 53rd Senate District
(R, IP) Senate District
(D, WF) 63rd Senate District
(D) Senate District
(R, C, IP) Senate District
(D, WF) 21st Senate District
(R, C, IP) Senate District
(D, IP) Senate District
(D, IP) Senate District
2011-S3164 (ACTIVE) - Details
- See Assembly Version of this Bill:
- A5021
- Current Committee:
- Senate Energy And Telecommunications
- Law Section:
- Economic Development Law
- Laws Affected:
- Add §188-a, and §§183 & 189, Ec Dev L; amd §1005, rpld sub 16, Pub Auth L; amd §9, Chap 316 of 1997; amd §11, Chap 645 of 2006; amd §186-a Tax L; amd §2, Chap 477 of 2009
2011-S3164 (ACTIVE) - Sponsor Memo
BILL NUMBER:S3164
TITLE OF BILL:
An act
to amend the economic development law and the public
authorities law, in relation to the creation of the
recharge
New York power program; and to amend
the economic development law, the
public authorities
law, the tax 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 development,
and
chapter 645 of the laws of 2006
amending the economic development law and other laws relating to
reauthorizing the power authority of the state of
New York to make contributions to the
general fund,
in relation to
extending the expiration of the power for jobs
program and the energy cost savings benefit
program;
to
amend chapter 477 of the laws of 2009, amending the public
authorities law relating
to energy efficiency and clean energy initiatives
of the power authority of the state of New York, in relation
to making such
provisions permanent
and to repeal subdivision 16 of section 1005 of the public authorities
law relating to energy audits
PURPOSE:
This bill would create a new permanent, 910 megawatt ("MW") Recharge
New York power program ("Recharge N.Y.") administered by the Power
Authority of the State of New York ("NYPA") and the Economic
Development Power Allocation Board ("EDPAB"), for the purposes of
creating and retaining jobs in New York State by attracting
businesses to the State, creating new businesses within the State,
and encouraging the expansion of existing businesses in the State.
The central benefit of the new program would consist of a blend of
NYPA hydropower and competitively purchased market power for allocation
to eligible businesses and other entities located in the State. The
bill would reallocate up to 455 MW of hydroelectric power currently
used by domestic and rural consumers to support Recharge N.Y.; extend
temporarily and then phase out the existing Power for Jobs ("PFJ")
and Energy Cost Savings Benefit ("ECSB") programs; facilitate energy
efficiency investments by participating businesses to reduce their
operating costs and ensure optimum use of the power allocated under
Recharge N.Y.; and provide for measures to help mitigate effects on
domestic and rural consumers resulting from the reallocation of
NYPA's hydropower resource for Recharge N.Y.
SUMMARY OF PROVISIONS:
Section 1 of the bill would provide the short title of the bill as
"recharge New York power program act."
Section 2 of the bill would add a new section 188-a to the Economic
Development Law (EDL) to create Recharge N.Y. Section 188-a would,
among other things:
* Define terms used in EDL § 188-a.
* Authorize EDPAB to solicit applications for Recharge N.Y. power
allocations no later than February 1, 2012, and to make
recommendations to NYPA for allocations under the program beginning
July 1, 2012.
* Establish who is eligible to receive power allocations under
Recharge N.Y.
* Establish notice requirements for applications fur Recharge N.Y.
power allocations and the Recharge N.Y. application process.
* Establish criteria for a Recharge N.Y. power allocation award,
which would include the following:
o the significance of electricity costs to the applicant;
o the extent to which an award of Recharge N.Y. power to the
applicant would result in new capital investments in the State;
o the extent to which a ReCharge N.Y. power allocation is consistent
with any regional economic development council strategies and
priorities;
o the types of facilities the applicant proposes to construct enlarge,
or install as consideration for a Recharge N.Y. power allocation;
o the payroll, salaries and benefits provided by the applicant;
o the number of jobs the applicant would create or retain in relation
to the size of the Recharge N.Y. power allocation requested;
o the risk the applicant would leave the State, curtail operations, or
lose jobs without the Recharge N.Y. power allocation;
o the significance of the applicant's facilities to the local economy;
o the extent to which the applicant has invested in energy efficiency
measures, will agree to make tangible investments in energy
efficiency measures, or will agree to participate in energy audits of
its facilities;
o whether the applicant receives a hydroelectric power allocation or
benefits supported by the sale of hydroelectric power under another
program administered in whole or part by NYPA;
o the extent to which a power allocation for the applicant will result
in an advantage as compared to its competitors in the State; and
o regarding not-for-profit corporation applicants, whether the
applicant provides critical services or substantial benefits to the
local community.
* Establish an initial term of up to 7 years for Recharge N.Y. power
allocations and related contracts, and authorize extensions of
allocations and contracts.
* Authorize reductions of Recharge N.Y. power allocations at
facilities if actual metered load is less than the allocation, and
reallocation of relinquished or withdrawn Recharge N.Y. power.
* Authorize EDPAB and NYPA to require commitments by applicants,
such as agreements by applicants to undertake energy audits of its
facilities, to provide NYPA with access to facilities, and to
provide NYPA with information on audit results and implementation of
audit recommendations.
* Provide that: (1) EDPAB shall not allocate more than 910 MW of
Recharge N.Y. power;
(2) at least 350 MW of Recharge N.Y. power will be set aside for use
at facilities located within the National Grid, New York State
Electric and Gas ("NYSEG") and Rochester Gas and Electric ("RG&E")
service territories; (3) at least 200 MW of Recharge N.Y.
power will be set aside for purposes of attracting business to the
State, creating new businesses within the State, or encouraging the
expansion of existing businesses in the State that create new jobs or
leverage new capital investment; and (4) up to 100 MW of Recharge
N.Y. power will be set aside for eligible small businesses and
not-for-profit corporations.
* Authorize EDPAB to choose between eligible applicants based on
which applicants best meet applicable criteria, require EDPAB to
issue recommendations on applications in writing, and provide that a
recommendation for Recharge N.Y. power allocation qualifies the
applicant to enter into a contract with NYPA on appropriate terms
and conditions.
* Provide for the partial and complete withdrawal of Recharge N.Y.
power from a recipient for non-compliance with agreed-upon commitments.
* Require NYPA and the Department of Public Service ("DPS") to make
recommendations to the Public Service Commission ("PSC") for reduced
rates applicable to the delivery by utility corporations of Recharge
N.Y. power, and provide that any such recommendations for reduced
delivery rates would be at such level as to allow the utility to (1)
recover the incremental cost of providing delivery service to such
customers, and (2) contribute to the common delivery and related
costs which otherwise would be borne by other customers.
* Restrict the transfer of Recharge N.Y. power allocations and
contracts.
* Require EDPAB, in consultation with NYPA, periodically to report
on the effectiveness of the Recharge N.Y. program.
Section 3 of the bill would add a new Public Authorities Law ("PAL")
§ 1005(13-a) to authorize NYPA to make Recharge N.Y. power
allocations, and to enter into contracts to sell up to 910 MW of
Recharge N.Y. power to eligible applicants upon recommendation of
EDPAB.
This new subdivision would also provide that power used in the
Recharge N.Y. consists of: (1) up to 455 MW of hydroelectric power
withdrawn from utility corporations to which it had been allocated
for the benefit of such corporations' "domestic and rural" consumers;
and (2) up to an equal amount of energy procured by NYPA from other
sources (so-called "Recharge New York market power"). Recharge N.Y.
power allocations would consist of equal parts of NYPA hydropower and
the market power and would be sold to eligible applicants on a
uniform basis.
Subdivision 13-a would further provide that NYPA, prior to entering
into a contract with an eligible applicant for the sale of Recharge
N.Y. power, and prior to the provision of electric service relating
to a Recharge N.Y. power allocation, will offer eligible applicants
the option to decline to purchase the market power component of such
Recharge N.Y. allocation.
Section 4 of the bill would add a new PAL § 1005(13-b) to authorize
NYPA to implement two residential consumer discount programs to help
mitigate cost impacts on residential consumers resulting from the
reallocation of hydroelectric power for Recharge N.Y.
Under the "Residential Consumer Electricity Cost Discount" ("RCECD")
program, NYPA would be authorized, as deemed feasible and advisable
by its Board of Trustees, to fund monthly payments to be made for the
benefit of such classes of electricity consumers as enjoyed the
benefits of authority hydroelectric power withdrawn pursuant to PAL
1005(13-a). The monthly payments would commence after the
hydroelectric power is withdrawn. The total annual amount of the
temporary monthly payments for each of the first three 12-month
periods following withdrawal of the hydroelectric power will be $100
million. The total annual amount of the monthly payments for each
of the two subsequent 12-month periods will be $70 million and $50
million, respectively. Thereafter, the total amount of monthly
payments for each 12-month period would be $30 million. Beginning in
the second year of the RCECD program, up to $8 million of the
payments made that year would be set aside for an "Agricultural
Consumer Electricity Cost Discount" program to provide supplemental
discounts to agricultural producers who receive electric service at
the residential rate. The PSC would supervise the distribution of
this funding through jurisdictional utility rates, according
to the relative amounts of hydropower purchased by the utilities.
Section 5 of the bill would add a new PAL § 1005(18) to require NYPA
to complete detailed annual reports on each economic development
power program it administers.
Section 6 of the bill would provide that, with respect to applicants
who are in substantial compliance with contractual commitments and
receiving benefits under the existing Power for Jobs, Energy Cost
Savings Benefit, Economic Development, High Load Factor or Municipal
Distribution Agency programs, but who do not receive a recommendation
from the EDPAB for a Recharge N.Y. power allocation, EDPAB will
recommend that NYPA provide a "transitional electricity discount"
through June 30, 2016. The amount of a transitional electricity
discount for
the period July 1, 2012 through June 30, 2014 would be equivalent to 66
percent of the unit (per kilowatt-hour) value of the savings received
by the applicant under the PFJ or ECSB programs during the 12 months
ending on December 31, 2010. The amount of a transitional electricity
discount for the period July 1, 2014 through June 30, 2016 would be
equivalent to 33 percent of the unit (per kilowatt-hour) value of the
savings received by the applicant under the PFJ or ECSB programs
during the 12 months ending on December 31, 2010.
Section 7 of the bill would amend section 9 (the effective date
section) of Chapter 316 of the Laws of 1997 to extend the current
sunset of Chapter 316 to June 30, 2012. Chapter 316, among other
things, created the PFJ program in EDL § 189.
Section 8 of the bill would amend section 11 (the effective date
section) of Chapter 645 of the Laws of 2006 to extend the sunset of
section 7 of Chapter 645 to June 30, 2012. Section 7 of Chapter 645
provides for certain responsibilities of NYPA, the Director of the
Budget and the Comptroller relating to the PFJ program.
Section 9 of the bill would amend EDL § 183(h)(2) and (4) to extend
the current sunset of the ECSB program to June 30, 2012.
Section 10 of the bill would amend the opening paragraph of EDL
§ 189(a)(5) to extend the current sunset of the PFJ Electricity Savings
Reimbursements to June 30, 2012 at the same level as provided under
such program during the 12 months ending on December 31, 2010.
Section 11 of the bill would amend EDL § 189(f) and (1) to provide for
the extension of Power for Jobs contracts and rebates through June
30, 2012.
Section 12 of the bill would amend Tax Law § 186-a(9) to extend the
taxable period for which a utility that delivers PFJ power is allowed
a tax credit through 2012.
Section 13 of the bill would amend subparagraph 2 of paragraph (g) of
the ninth undesignated paragraph of PAL § 1005 to authorize NYPA, as
deemed feasible and advisable by its Board of Trustees, to make a
voluntary contribution to the State of $7.5 million for State Fiscal
Year 2010-11 and $6 million for State Fiscal Year 2011-12 to offset
losses to the State from the gross receipts tax revenues from PFJ
contract extensions. This section would also raise the aggregate
amount that NYPA may contribute to the State under the PFJ program
to $475,000,000.
Section 14 of the bill would amend PAL § 1005(5) to clarify the
purposes for which Niagara and St. Lawrence Project power may be used.
Section 15 of the bill would repeal PAL § 1005(16) (added by Chapter
217 of the Laws of 2009), because that subdivision has been fully
implemented and, therefore, is no longer necessary.
Section 16 of the bill would renumber PAL § 1005(16) (added by chapter
477 of the Laws of 2009) as subdivision 17, and amend paragraph (a)
of such subdivision to authorize NYPA to offer its energy efficiency
programs to Recharge N.Y. participants.
Section 17 of the bill would amend section 2 of chapter 477 of the
Laws of 2009 (the effective date section) to permanently authorize
NYPA to offer its energy efficiency programs to Recharge N.Y.
participants.
Section 18 of the bill would amend the opening paragraph of PAL
1005(6) to clarify that NYPA may develop, maintain, manage and
operate its projects other than the Niagara and Saint Lawrence
hydroelectric projects so as to, among other things, provide a supply
of power and energy for use in Recharge N.Y.
Section 19 of the bill contains a severability clause.
Section 20 of the bill provides for the bill's effective date.
EXISTING LAW:
The PPJ and ECSB programs expire May 15, 2011.
Chapter 316 of the Laws of 1997 established the PPJ program to provide
discounted NYPA-purchased power to businesses and not-for-profit
corporations that agree to create or retain jobs in New York State. In
return for such commitments, successful applicants received
three-year contracts for PPJ electricity. The PPJ program originally
made 400 MW of power available and was to be phased in over three
years. As a result of the initial popularity of the program, the PPJ
statute was amended by Chapter 386 of the Laws of 1998 to accelerate
the distribution of the power and increase the size of the program to
450 MW. Chapter 63 of the Laws of 2000 and Chapter 226 of the Laws of
2002 amended the statute to authorize additional power to be
allocated under the program and to authorize certain participants to
apply for reallocations of power under the program.
Chapter 59 of the Laws of 2004 extended program benefits for PPJ
customers whose contracts expired before the end of the PPJ program
in 2005. Such customers were required to choose to receive an
"electricity savings reimbursement" rebate or a power contract
extension.
NYPA was authorized to voluntarily fund the rebates if deemed
feasible and advisable by NYPA's Trustees.
PPJ customers whose contracts expired on or prior to November 30, 2004
were eligible for a rebate to the extent funded by NYPA from the
date their contract expired through December 31, 2005. As an
alternative, these customers could have chosen to receive a rebate to
the extent funded by NYPA from the date their contract expired as a
bridge to a new contract extension, with the contract extension
commencing December 1, 2004. The new contract would have been in
effect from a period no earlier than December 1, 2004 through the end
of the PPJ program on December 31, 2005. PPJ customers whose
contracts expired after November 30,
2004 were eligible for rebate or contract extension from the date
their contracts expired through December 31, 2005.
Approved contract extensions entitled customers to receive power from
NYPA pursuant to a sale-for-resale agreement with the customer's
local utility. Separate allocation contracts between customers and
NYPA contained job commitments enforceable by NYPA.
In 2005, provisions of the enacted State budget extended the period
during which PFJ customers could receive benefits until December 31,
2006. Chapter 645 of the Laws of 2006 included provisions extending
program benefits until June 30, 2007. Chapter 89 of the Laws of 2007
included provisions extending program benefits until June 30, 2008.
Chapter 59 of the Laws of 2008 included provisions extending program
benefits until June 30, 2009. Chapter 217 of the Laws of 2009
included provisions extending program benefits until May 15, 2010.
Chapter 88 of the Laws of 2010 extended program benefits until June 2,
2010. Chapter 311 of the Laws of 2010 extended program benefits until
May 15, 2011.
Chapter 313 of the Laws of 2005 created the ECSB program. Pursuant to
the ECSB program, NYPA makes discounted market power available to 94
businesses in the Economic Development Power, High Load Factor Power
and Municipal Distribution Agency Power programs that were facing
price increases before the end of 2006. Up to 70 MW of unallocated
power from the Niagara Power Project and up to 20 MW of currently
unallocated power from the St. Lawrence-FDR Project may be sold into
the market to fund the ECSB program.
LEGISLATIVE HISTORY:
This is a new bill.
STATEMENT IN SUPPORT:
New York must take decisive action to put our economy back on track.
There are approximately 800,000 New Yorkers unemployed. From 2000 to
2010, New York has lost 288,000 manufacturing jobs. Many businesses
and factories have curtailed operations or have closed entirely. In
addition to the severe toll the current recession has taken on
families, it has also caused a dramatic reduction in revenue to the
State, resulting in record State budget deficits, and has reduced the
property tax base in our communities, resulting in upward pressure on
property taxes for New Yorkers who are already struggling to stay in
their homes and communities.
While it is true that the current recession is a global economic
problem, it is also true that New York State's challenging business
climate has contributed to our fiscal problems.
Among the key factors that impact New York's competitiveness compared
to other states is energy cost. New York's commercial and industrial
electricity rates are double that of states in the south that are
competing for business and industrial investment. New York's high
energy cost is a factor when existing New York-based companies decide
whether to stay open or expand, and when new companies decide in
which state to invest. It is critical to retain existing
manufacturers and businesses to protect good-paying jobs and to
preserve our property tax base, and it is also critical to attract
new business investment and create new jobs for the unemployed.
A permanent statewide low-cost power program will help achieve these
goals.
The current PPJ program provides discounted energy to approximately
500 businesses and non-profits across New York State that employ
approximately 300,000 people. Created over a decade ago, PPJ supplies
discounted power or cash rebates to companies that retain and create
jobs. However, the program will expire in May of this year and these
businesses and non-profit corporations will lose access to the
program unless action is taken by the Legislature.
The PPJ program has been extended on an annual basis for the last six
years. This approach has not served New York well. During this time,
the program has not been open to participation by new businesses and
existing beneficiaries have been reluctant to invest in their
facilities without the assurance that the benefits will continue for
multiple years. The year-to-year extensions have also hampered NYPA's
ability to effectively administer the programs and execute long term
budgeting and hedging strategies. In addition, the last incarnation
of the PPJ program lacked critical incentives to reward participating
companies that increase their energy efficiency, thereby saving
valuable energy and resources not only for themselves, but also for
all New Yorkers.
This bill would replace the PPJ program with a permanent statewide
economic development program, Recharge N.Y. This new program would
provide predictability and stability of power supply with long-term
contracts and would provide new selection criteria and tools to
encourage energy efficiency investments at the facilities that
participate in the program.
This would ensure that businesses can invest in their plants with
confidence that this program will continue to be available to them,
and ensure that the power provided under the program is used as
efficiently as possible.
Eligible businesses and institutions that receive Recharge N.Y. power
allocations would be allowed to enter contracts for up to seven
years, which would provide long-term certainty to encourage new
investment and expansion in New York. Recharge N.Y. would reserve at
least 350 MW for economic development in the National Grid, NYSEG,
and RG&E service territories and 200 MW to attract new investment,
thus ensuring that the bill would result in both job retention and
job creation. In addition, Recharge N.Y. would reserve 100 MW for
not-for-profits, such as hospitals, thus protecting jobs in
institutions that provide critical services to our communities.
In summary, the new Recharge N.Y. would help to protect existing jobs,
attract new jobs, encourage new investment in the State, and help
grow the State's tax base.
Hydropower that would be utilized for the Recharge N.Y. is currently
sold by NYPA at cost to National Grid, NYSEG, and RG&E to benefit
residential customers under NYPA's domestic and rural program. The
value of this benefit in 2010 was approximately $100 million, which
equated to an average monthly residential discount of $3.30 per
customer. Residential customers in these utility service territories
would continue to receive a permanent benefit from
NYPA after the hydropower is reallocated for use in Recharge N.Y.
First, over the first five years after the bill is enacted, NYPA
would transfer funding to National Grid, NYSEG and RG&E to provide
transitional utility bill discounts for residential customers. These
transitional discounts would be funded at $100 million per year for
the first three years of the program, effectively holding these
customers harmless during this time. In the fourth year (2014), the
discount would be reduced to $70 million and in the fifth year the
discount would be reduced to $50 million. Thereafter, the discount
would remain at $30 million per year. The reduced discount would be
offset by the expiration in 2014 of the State's temporary "18-a"
assessment on utility bills. Up to $8 million of the annual permanent
benefit would be set aside for an additional electricity discount for
agricultural consumers taking electric service at the residential rate.
BUDGET IMPLICATIONS:
This bill would have no impact on the State budget because the
resources for the new Recharge N.Y. power program would be provided
by NYPA. Such resources would consist of hydroelectric power and
other resources deemed feasible and advisable by the NYPA Trustees.
EFFECTIVE DATE:
This bill would take effect immediately, provided, however, that the
amendments to the provisions of law relating to the PFJ and ECSB
programs would not affect the expiration of such provisions of law
and would be deemed repealed with them.
2011-S3164 (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K
________________________________________________________________________
3164
2011-2012 Regular Sessions
I N S E N A T E
February 10, 2011
___________
Introduced by Sen. MAZIARZ -- (at request of the Governor) -- read twice
and ordered printed, and when printed to be committed to the Committee
on Energy and Telecommunications
AN ACT to amend the economic development law and the public authorities
law, in relation to the creation of the recharge New York power
program; and to amend the economic development law, the public author-
ities law, the tax 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 development, and chapter 645
of the laws of 2006 amending the economic development law and other
laws relating to reauthorizing the power authority of the state of New
York to make contributions to the general fund, in relation to extend-
ing the expiration of the power for jobs program and the energy cost
savings benefit program; to amend chapter 477 of the laws of 2009,
amending the public authorities law relating to energy efficiency and
clean energy initiatives of the power authority of the state of New
York, in relation to making such provisions permanent and to repeal
subdivision 16 of section 1005 of the public authorities law relating
to energy audits
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Short title. This act shall be known and may be cited as
the "recharge New York power program act."
S 2. The economic development law is amended by adding a new section
188-a to read as follows:
S 188-A. RECHARGE NEW YORK POWER PROGRAM. (A) DEFINITIONS. FOR THE
PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING
MEANINGS:
(1) "APPLICABLE CRITERIA" SHALL MEAN THE CRITERIA SPECIFIED IN SUBDI-
VISION (C) OF THIS SECTION.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD12006-02-1
S. 3164 2
(2) "AUTHORITY" SHALL MEAN THE POWER AUTHORITY OF THE STATE OF NEW
YORK.
(3) "RECHARGE NEW YORK POWER ALLOCATION" OR "ALLOCATION" SHALL MEAN AN
ALLOCATION OF RECHARGE NEW YORK POWER BY THE POWER AUTHORITY OF THE
STATE OF NEW YORK PURSUANT TO SECTION ONE THOUSAND FIVE OF THE PUBLIC
AUTHORITIES LAW TO AN ELIGIBLE APPLICANT RECOMMENDED BY THE NEW YORK
STATE ECONOMIC DEVELOPMENT POWER ALLOCATION BOARD IN ACCORDANCE WITH
THIS SECTION.
(4) "ELIGIBLE APPLICANT" SHALL MEAN AN ELIGIBLE BUSINESS, ELIGIBLE
SMALL BUSINESS, OR ELIGIBLE NOT-FOR-PROFIT CORPORATION AS DEFINED IN
THIS SECTION, PROVIDED HOWEVER, THAT AN ELIGIBLE APPLICANT SHALL NOT
INCLUDE RETAIL BUSINESSES AS DEFINED BY THE BOARD, INCLUDING, WITHOUT
LIMITATION, SPORTS VENUES, GAMING OR ENTERTAINMENT-RELATED ESTABLISH-
MENTS OR PLACES OF OVERNIGHT ACCOMMODATION.
(5) "ELIGIBLE BUSINESS" SHALL MEAN A BUSINESS OTHER THAN A
NOT-FOR-PROFIT CORPORATION WHICH NORMALLY UTILIZES A MINIMUM PEAK ELEC-
TRIC DEMAND IN EXCESS OF FOUR HUNDRED KILOWATTS.
(6) "ELIGIBLE NOT-FOR-PROFIT CORPORATION" SHALL MEAN A CORPORATION
DEFINED IN SUBDIVISION FIVE OF PARAGRAPH (A) OF SECTION ONE HUNDRED TWO
OF THE NOT-FOR-PROFIT CORPORATION LAW.
(7) "ELIGIBLE SMALL BUSINESS" SHALL MEAN A BUSINESS OTHER THAN A NOT-
FOR-PROFIT CORPORATION WHICH NORMALLY UTILIZES A MINIMUM PEAK ELECTRIC
DEMAND EQUAL TO OR LESS THAN FOUR HUNDRED KILOWATTS.
(8) "RECHARGE NEW YORK POWER" SHALL MEAN AND CONSIST OF EQUAL AMOUNTS
OF (I) UP TO FOUR HUNDRED FIFTY-FIVE MEGAWATTS OF FIRM HYDROELECTRIC
POWER FROM THE NIAGARA AND SAINT LAWRENCE HYDROELECTRIC PROJECTS TO BE
WITHDRAWN FROM UTILITY CORPORATIONS THAT, PRIOR TO THE EFFECTIVE DATE OF
THIS SECTION, PURCHASED SUCH POWER FOR THE BENEFIT OF THEIR DOMESTIC AND
RURAL CONSUMERS ("RECHARGE NEW YORK HYDROPOWER"), AND (II) POWER
PROCURED BY THE AUTHORITY THROUGH A COMPETITIVE PROCUREMENT PROCESS,
AUTHORITY SOURCES (OTHER THAN THE NIAGARA AND SAINT LAWRENCE PROJECTS)
OR THROUGH AN ALTERNATE METHOD ("RECHARGE NEW YORK MARKET POWER").
(B) APPLICATIONS FOR RECHARGE NEW YORK POWER ALLOCATIONS. (1) THE
BOARD MAY SOLICIT APPLICATIONS FOR RECHARGE NEW YORK POWER ALLOCATIONS
UNDER THE PROGRAM CREATED BY THIS SECTION BY PUBLIC NOTICE BEGINNING NO
LATER THAN FEBRUARY FIRST, TWO THOUSAND TWELVE. SUCH NOTICE MAY INCLUDE
NEWSPAPER ADVERTISEMENTS, PRESS RELEASES, WEBSITE POSTINGS, PAPER OR
ELECTRONIC MAILING, AND/OR SUCH OTHER FORM OF NOTICE AS THE BOARD FINDS
APPROPRIATE IN CONSULTATION WITH THE AUTHORITY.
(2) APPLICATIONS FOR RECHARGE NEW YORK POWER ALLOCATIONS SHALL BE IN
THE FORM AND CONTAIN SUCH INFORMATION, EXHIBITS AND SUPPORTING DATA AS
THE BOARD PRESCRIBES IN CONSULTATION WITH THE AUTHORITY. A COPY OF EACH
APPLICATION RECEIVED SHALL BE MADE AVAILABLE FOR REVIEW BY EACH BOARD
MEMBER, AND A COPY SHALL BE PROVIDED TO THE AUTHORITY.
(3) AN APPLICANT WHO IS A RECIPIENT OF A HYDROELECTRIC POWER ALLO-
CATION OR BENEFITS SUPPORTED BY THE SALE OF HYDROELECTRIC POWER UNDER
ANOTHER PROGRAM ADMINISTERED IN WHOLE OR PART BY THE AUTHORITY SHALL BE
ELIGIBLE TO APPLY FOR AN ALLOCATION UNDER THE RECHARGE NEW YORK POWER
PROGRAM ONLY IF IT IS IN SUBSTANTIAL COMPLIANCE WITH ITS CONTRACTUAL
COMMITMENTS MADE IN CONNECTION WITH SUCH OTHER PROGRAM, PROVIDED HOWEVER
THAT AN APPLICANT SHALL NOT RECEIVE A RECHARGE NEW YORK POWER ALLOCATION
AND ANY OTHER AUTHORITY POWER PROGRAM BENEFITS WITH RESPECT TO THE SAME
QUANTITY OF ELECTRICITY CONSUMED AT A FACILITY.
(4) SUBJECT TO CONFIDENTIALITY REQUIREMENTS, UPON RECEIPT OF EACH
APPLICATION FROM THE BOARD, THE AUTHORITY SHALL PROMPTLY NOTIFY BY ELEC-
TRONIC MEANS, INCLUDING WEBSITE POSTINGS AND SUCH OTHER METHODS THE
S. 3164 3
BOARD DEEMS APPROPRIATE IN CONSULTATION WITH THE AUTHORITY, THE GOVER-
NOR, THE SPEAKER OF THE ASSEMBLY, THE MINORITY LEADER OF THE ASSEMBLY,
THE TEMPORARY PRESIDENT OF THE SENATE, THE MINORITY LEADER OF THE
SENATE, AND EACH MEMBER OF THE STATE LEGISLATURE IN WHOSE DISTRICT ANY
PORTION OF THE FACILITY FOR WHICH AN ALLOCATION IS REQUESTED IS LOCATED.
SUCH NOTICE SHALL PROVIDE THE NAME AND A DESCRIPTION OF THE APPLICANT,
AND THE ADDRESS OF THE FACILITY FOR WHICH THE ALLOCATION IS REQUESTED.
THE AUTHORITY SHALL ALSO DEVELOP A LISTING WHICH CONTAINS THE NAME AND A
DESCRIPTION OF EACH APPLICANT, THE RECHARGE NEW YORK POWER PROGRAM ALLO-
CATION SOUGHT BY EACH APPLICANT, AND THE ADDRESS OF THE FACILITY FOR
WHICH THE APPLICANT REQUESTS THE ALLOCATION, AND SHALL MAKE THE LISTING
AVAILABLE FOR PUBLIC REVIEW ON THE AUTHORITY'S WEBSITE.
(C) REVIEW APPLICABLE CRITERIA AND RECOMMENDATIONS. (1) THE BOARD
SHALL REVIEW APPLICATIONS SUBMITTED UNDER THE RECHARGE NEW YORK POWER
PROGRAM. THE BOARD SHALL MAKE AN INITIAL DETERMINATION OF WHETHER THE
APPLICANT IS AN ELIGIBLE APPLICANT. IN THE CASE OF AN ELIGIBLE APPLI-
CANT, THE BOARD MAY RECOMMEND TO THE AUTHORITY THAT AN ALLOCATION OF
RECHARGE NEW YORK POWER BE AWARDED TO AN APPLICANT FOR A FACILITY
LOCATED IN THE STATE OF NEW YORK BASED ON CONSIDERATION OF THE FOLLOWING
CRITERIA WHICH SHALL BE CONSIDERED IN THE AGGREGATE AND NO ONE OF WHICH
SHALL BE PRESUMPTIVELY DETERMINATIVE:
(I) THE SIGNIFICANCE OF THE COST OF ELECTRICITY TO THE APPLICANT'S
OVERALL COST OF DOING BUSINESS, AND THE IMPACT THAT A RECHARGE NEW YORK
POWER ALLOCATION WILL HAVE ON THE APPLICANT'S OPERATING COSTS;
(II) THE EXTENT TO WHICH A RECHARGE NEW YORK POWER ALLOCATION WILL
RESULT IN NEW CAPITAL INVESTMENT IN THE STATE BY THE APPLICANT;
(III) THE EXTENT TO WHICH A RECHARGE NEW YORK POWER ALLOCATION IS
CONSISTENT WITH ANY REGIONAL ECONOMIC DEVELOPMENT COUNCIL STRATEGIES AND
PRIORITIES;
(IV) THE TYPE AND COST OF BUILDINGS, EQUIPMENT AND FACILITIES TO BE
CONSTRUCTED, ENLARGED OR INSTALLED IF THE APPLICANT WERE TO RECEIVE AN
ALLOCATION;
(V) THE APPLICANT'S PAYROLL, SALARIES, BENEFITS AND NUMBER OF JOBS AT
THE FACILITY FOR WHICH A RECHARGE NEW YORK POWER ALLOCATION IS
REQUESTED;
(VI) THE NUMBER OF JOBS THAT WILL BE CREATED OR RETAINED WITHIN THE
STATE IN RELATION TO THE REQUESTED RECHARGE NEW YORK POWER ALLOCATION,
AND THE EXTENT TO WHICH THE APPLICANT WILL AGREE TO COMMIT TO CREATING
OR RETAINING SUCH JOBS AS A CONDITION TO RECEIVING A RECHARGE NEW YORK
POWER ALLOCATION;
(VII) WHETHER THE APPLICANT, DUE TO THE COST OF ELECTRICITY, IS AT
RISK OF CLOSING OR CURTAILING FACILITIES OR OPERATIONS IN THE STATE,
RELOCATING FACILITIES OR OPERATIONS OUT OF THE STATE, OR LOSING A
SIGNIFICANT NUMBER OF JOBS IN THE STATE, IN THE ABSENCE OF A RECHARGE
NEW YORK POWER ALLOCATION;
(VIII) THE SIGNIFICANCE OF THE APPLICANT'S FACILITY THAT WOULD RECEIVE
THE RECHARGE NEW YORK POWER ALLOCATION TO THE ECONOMY OF THE AREA IN
WHICH SUCH FACILITY IS LOCATED;
(IX) THE EXTENT TO WHICH THE APPLICANT HAS INVESTED IN ENERGY EFFI-
CIENCY MEASURES, WILL AGREE TO PARTICIPATE IN OR PERFORM ENERGY AUDITS
OF ITS FACILITIES, WILL AGREE TO PARTICIPATE IN ENERGY EFFICIENCY
PROGRAMS OF THE AUTHORITY, OR WILL COMMIT TO IMPLEMENT OR OTHERWISE MAKE
TANGIBLE INVESTMENTS IN ENERGY EFFICIENCY MEASURES AS A CONDITION TO
RECEIVING A RECHARGE NEW YORK POWER ALLOCATION;
S. 3164 4
(X) WHETHER THE APPLICANT RECEIVES A HYDROELECTRIC POWER ALLOCATION OR
BENEFITS SUPPORTED BY THE SALE OF HYDROELECTRIC POWER UNDER ANOTHER
PROGRAM ADMINISTERED IN WHOLE OR IN PART BY THE AUTHORITY;
(XI) THE EXTENT TO WHICH A RECHARGE NEW YORK POWER ALLOCATION WILL
RESULT IN AN ADVANTAGE FOR AN APPLICANT IN RELATION TO THE APPLICANT'S
COMPETITORS WITHIN THE STATE; AND
(XII) IN ADDITION TO THE FOREGOING CRITERIA, IN THE CASE OF A
NOT-FOR-PROFIT CORPORATION, WHETHER THE APPLICANT PROVIDES CRITICAL
SERVICES OR SUBSTANTIAL BENEFITS TO THE LOCAL COMMUNITY IN WHICH THE
FACILITY FOR WHICH THE ALLOCATION IS REQUESTED IS LOCATED.
(2) A RECOMMENDATION BY THE BOARD THAT THE AUTHORITY PROVIDE A
RECHARGE NEW YORK POWER ALLOCATION TO AN ELIGIBLE APPLICANT SHALL
INCLUDE, BUT NEED NOT BE LIMITED TO:
(I) THE AMOUNT OF THE RECHARGE NEW YORK POWER ALLOCATION THE BOARD HAS
DETERMINED SHOULD BE AWARDED TO SUCH ELIGIBLE APPLICANT, PROVIDED HOWEV-
ER, THAT THE BOARD MAY RECOMMEND A RECHARGE NEW YORK POWER ALLOCATION IN
AN AMOUNT THAT IS LESS THAN THE AMOUNT REQUESTED BY SUCH APPLICANT;
(II) AN EFFECTIVE INITIAL TERM OF THE ALLOCATION AND CONTRACT BETWEEN
THE ELIGIBLE APPLICANT AND THE AUTHORITY WHICH SHALL NOT EXCEED SEVEN
YEARS, PROVIDED HOWEVER THAT THE TERM OF ANY SUCH ALLOCATION AND
CONTRACT SHALL NOT BECOME EFFECTIVE BEFORE JULY FIRST, TWO THOUSAND
TWELVE;
(III) PROVISIONS FOR EFFECTIVE PERIODIC AUDITS OF THE RECIPIENT OF AN
ALLOCATION FOR THE PURPOSE OF DETERMINING CONTRACT AND PROGRAM COMPLI-
ANCE, AND FOR THE PARTIAL OR COMPLETE WITHDRAWAL OF AN ALLOCATION IF THE
RECIPIENT FAILS TO MAINTAIN MUTUALLY AGREED UPON COMMITMENTS, RELATING
TO, AMONG OTHER THINGS, EMPLOYMENT LEVELS, POWER UTILIZATION, CAPITAL
INVESTMENTS, AND/OR ENERGY EFFICIENCY MEASURES;
(IV) A REQUIREMENT FOR AN AGREEMENT BY THE RECIPIENT OF AN ALLOCATION
TO (A) UNDERTAKE AT ITS OWN EXPENSE AN ENERGY AUDIT OF ITS FACILITIES AT
WHICH THE ALLOCATION IS CONSUMED AT LEAST ONCE DURING THE TERM OF THE
ALLOCATION BUT IN ANY EVENT NOT LESS THAN ONCE EVERY FIVE YEARS,
PROVIDED, HOWEVER, THAT SUCH REQUIREMENT MAY BE WAIVED OR MODIFIED BY
THE AUTHORITY ON A SHOWING OF GOOD CAUSE BY THE RECIPIENT, AND (B)
PROVIDE THE AUTHORITY WITH A COPY OF ANY SUCH AUDIT OR, AT THE AUTHORI-
TY'S OPTION, A REPORT DESCRIBING THE RESULTS OF SUCH AUDIT, AND PROVIDE
DOCUMENTATION REQUESTED BY THE AUTHORITY RELATING TO THE IMPLEMENTATION
OF ANY EFFICIENCY MEASURES AT THE FACILITIES; AND
(V) A REQUIREMENT FOR AN AGREEMENT BY THE RECIPIENT OF AN ALLOCATION
TO (A) MAKE ITS FACILITIES AVAILABLE AT REASONABLE TIMES AND INTERVALS
FOR ENERGY AUDITS AND RELATED ASSESSMENTS THAT THE AUTHORITY DESIRES TO
PERFORM, IF ANY, AT THE AUTHORITY'S OWN EXPENSE, AND (B) PROVIDE INFOR-
MATION REQUESTED BY THE AUTHORITY OR ITS DESIGNEE IN SURVEYS, QUESTION-
NAIRES AND OTHER INFORMATION REQUESTS RELATING TO ENERGY EFFICIENCY AND
ENERGY-RELATED PROJECTS, PROGRAMS AND SERVICES.
(3) THE BOARD'S RECOMMENDATION SHALL REQUIRE THAT IF THE ACTUAL
METERED LOAD AT THE FACILITY WHERE THE ALLOCATION IS UTILIZED IS LESS
THAN THE ALLOCATION, SUCH ALLOCATION WILL BE REDUCED ACCORDINGLY,
PROVIDED THAT, UNDER ITS CONTRACT WITH THE AUTHORITY, THE RECIPIENT
SHALL BE AFFORDED A REASONABLE PERIOD WITHIN WHICH TO FULLY UTILIZE THE
ALLOCATION, TAKING INTO ACCOUNT CONSTRUCTION SCHEDULES AND ECONOMIC
CONDITIONS. THE AUTHORITY SHALL REALLOCATE ANY WITHDRAWN OR RELINQUISHED
POWER FOR THE RECHARGE NEW YORK POWER PROGRAM CONSISTENT WITH PARAGRAPH
FOUR OF THIS SUBDIVISION.
(4) THE BOARD MAY BASE ITS RECOMMENDATION ON WHICH ELIGIBLE APPLICANTS
IT DETERMINES BEST MEET THE APPLICABLE CRITERIA; PROVIDED, HOWEVER, THAT
S. 3164 5
THE BOARD SHALL DEDICATE RECHARGE NEW YORK POWER AS FOLLOWS: (I) AT
LEAST THREE HUNDRED FIFTY MEGAWATTS FOR USE AT FACILITIES LOCATED WITHIN
THE SERVICE TERRITORIES OF THE UTILITY CORPORATIONS THAT, PRIOR TO THE
EFFECTIVE DATE OF THIS SECTION, PURCHASED NIAGARA AND SAINT LAWRENCE
HYDROELECTRIC POWER FOR THE BENEFIT OF THEIR DOMESTIC AND RURAL CONSUM-
ERS; (II) AT LEAST TWO HUNDRED MEGAWATTS FOR THE PURPOSES OF ATTRACTING
NEW BUSINESS TO THE STATE, CREATING NEW BUSINESS WITHIN THE STATE, OR
ENCOURAGING THE EXPANSION OF EXISTING BUSINESSES WITHIN THE STATE, THAT
CREATE NEW JOBS OR LEVERAGE NEW CAPITAL INVESTMENT; AND (III) AN AMOUNT
NOT TO EXCEED ONE HUNDRED MEGAWATTS FOR ELIGIBLE SMALL BUSINESSES AND
ELIGIBLE NOT-FOR-PROFIT CORPORATIONS.
(5) THE BOARD SHALL ISSUE A WRITTEN STATEMENT OF ITS FINDINGS AND
CONCLUSIONS WITH RESPECT TO EVERY APPLICATION AND THE REASONS FOR ITS
RECOMMENDATION TO THE AUTHORITY.
(6) A RECOMMENDATION FOR A RECHARGE NEW YORK POWER ALLOCATION SHALL
QUALIFY AN APPLICANT TO ENTER INTO A CONTRACT WITH THE AUTHORITY PURSU-
ANT TO THE TERMS AND CONDITIONS OF THE RECOMMENDATION BY THE BOARD AND
ON SUCH OTHER TERMS AS THE AUTHORITY DETERMINES TO BE APPROPRIATE.
(7) THE BOARD SHALL NOT RECOMMEND A TOTAL OF RECHARGE NEW YORK POWER
ALLOCATIONS IN EXCESS OF NINE HUNDRED TEN MEGAWATTS.
(D) THE AUTHORITY SHALL WORK COOPERATIVELY WITH THE DEPARTMENT OF
PUBLIC SERVICE TO RECOMMEND TO THE PUBLIC SERVICE COMMISSION REDUCED
RATES OR AN EQUIVALENT MECHANISM FOR THE DELIVERY BY UTILITY CORPO-
RATIONS OF RECHARGE NEW YORK POWER PROGRAM ALLOCATIONS. ANY SUCH RECOM-
MENDATION FOR REDUCED DELIVERY RATES SHALL BE AT SUCH LEVEL AS TO ALLOW
THE UTILITY TO (I) RECOVER THE INCREMENTAL COST OF PROVIDING DELIVERY
SERVICE TO SUCH CUSTOMERS, AND (II) CONTRIBUTE TO THE COMMON DELIVERY
AND RELATED COSTS WHICH OTHERWISE WOULD BE BORNE BY OTHER CUSTOMERS.
(E) THE AUTHORITY SHALL, AT A MINIMUM, REPORT QUARTERLY TO THE BOARD
ON THE AVAILABILITY OF RECHARGE NEW YORK POWER FOR THE SUBSEQUENT
TWELVE-MONTH PERIOD, THE AMOUNT OF SUCH POWER ALLOCATED AND OTHER RELE-
VANT INFORMATION.
(F) AFTER AN AWARD OF A RECHARGE NEW YORK POWER ALLOCATION, THE BOARD
SHALL ACCEPT REQUESTS FROM RECIPIENTS WHO AT THE TIME OF SUCH REQUEST
ARE ELIGIBLE APPLICANTS WHO ARE IN SUBSTANTIAL COMPLIANCE WITH CONTRAC-
TUAL COMMITMENTS MADE IN CONNECTION WITH THE RECHARGE NEW YORK POWER
PROGRAM FOR AN EXTENSION OF AN EXISTING ALLOCATION (I) DURING THE TWEN-
TY-FOUR MONTH PERIOD IMMEDIATELY PRECEDING THE EXPIRATION OF THE TERM OF
THE ALLOCATION, OR (II) AT SUCH EARLIER TIME WITH THE CONSENT OF THE
AUTHORITY IN WRITING. REQUESTS FOR EXTENSIONS SHALL BE REVIEWED USING
THE CRITERIA SET FORTH IN PARAGRAPH ONE OF SUBDIVISION (C) OF THIS
SECTION.
(G) TRANSFERS OF RECHARGE NEW YORK POWER. NOTWITHSTANDING ANY OTHER
APPROVAL REQUIRED BY STATUTE, REGULATION OR CONTRACT, THE TRANSFER OF A
RECHARGE NEW YORK POWER ALLOCATION TO A DIFFERENT RECIPIENT, TO A
DIFFERENT OWNER OR OPERATOR OF A FACILITY, OR TO A DIFFERENT FACILITY IS
PROHIBITED UNLESS SPECIFICALLY APPROVED BY THE BOARD AS CONSISTENT WITH
THE CRITERIA AND REQUIREMENTS OF THIS SECTION. ANY TRANSFER THAT OCCURS
WITHOUT THE BOARD'S APPROVAL SHALL BE INVALID AND SUCH TRANSFER MAY
SUBJECT THE TRANSFEROR TO REVOCATION OR MODIFICATION OF ITS ALLOCATION
AND CONTRACT.
(H) (1) THE BOARD, IN CONSULTATION WITH THE AUTHORITY, SHALL SUBMIT TO
THE GOVERNOR, TEMPORARY PRESIDENT OF THE SENATE, SPEAKER OF THE ASSEM-
BLY, MINORITY LEADER OF THE SENATE AND MINORITY LEADER OF THE ASSEMBLY
AN EVALUATION OF THE EFFECTIVENESS OF THE RECHARGE NEW YORK POWER
PROGRAM. SUCH EVALUATION SHALL FOCUS ON HOW THE PROGRAM HAS AIDED
S. 3164 6
RECIPIENTS OF POWER ALLOCATIONS, AND MAY INCLUDE RECOMMENDATIONS FOR HOW
THE PROGRAM CAN BE MADE MORE EFFECTIVE, AND SHALL BE BASED, IN PART, ON
THE RELATIVE COSTS OF POWER FOR RECIPIENTS IN COMPARISON TO THE COST OF
POWER FOR NON-RECIPIENTS. SUCH EVALUATION SHALL BE SUBMITTED BY DECEM-
BER THIRTY-FIRST, TWO THOUSAND FIFTEEN AND BY DECEMBER THIRTY-FIRST
EVERY FIVE YEARS THEREAFTER.
(2) THE BOARD, WITH ASSISTANCE FROM THE AUTHORITY, SHALL MAINTAIN THE
NECESSARY RECORDS AND DATA REQUIRED TO PERFORM SUCH EVALUATION AND
RESPOND TO REQUESTS FOR INFORMATION PURSUANT TO ARTICLE SIX OF THE
PUBLIC OFFICERS LAW.
S 3. Section 1005 of the public authorities law is amended by adding a
new subdivision 13-a to read as follows:
13-A. RECHARGE NEW YORK POWER PROGRAM. (A) NOTWITHSTANDING ANY OTHER
PROVISION OF LAW TO THE CONTRARY, BUT SUBJECT TO THE TERMS AND CONDI-
TIONS OF FEDERAL ENERGY REGULATORY COMMISSION LICENSES, TO ALLOCATE,
REALLOCATE OR EXTEND, DIRECTLY OR BY SALE FOR RESALE, UP TO NINE HUNDRED
TEN MEGAWATTS OF RECHARGE NEW YORK POWER TO ELIGIBLE APPLICANTS LOCATED
WITHIN THE STATE OF NEW YORK UPON THE RECOMMENDATION OF THE NEW YORK
STATE ECONOMIC DEVELOPMENT POWER ALLOCATION BOARD PURSUANT TO SECTION
ONE HUNDRED EIGHTY-EIGHT-A OF THE ECONOMIC DEVELOPMENT LAW.
(B) RECHARGE NEW YORK POWER SHALL MEAN AND CONSIST OF EQUAL AMOUNTS OF
(1) UP TO FOUR HUNDRED FIFTY-FIVE MEGAWATTS OF FIRM HYDROELECTRIC POWER
FROM THE NIAGARA AND SAINT LAWRENCE HYDROELECTRIC PROJECTS TO BE WITH-
DRAWN, AS OF THE EARLIEST DATE SUCH POWER MAY BE WITHDRAWN CONSISTENT
WITH CONTRACTUAL REQUIREMENTS, FROM UTILITY CORPORATIONS THAT, PRIOR TO
THE EFFECTIVE DATE OF THIS SUBDIVISION, PURCHASED SUCH POWER FOR THE
BENEFIT OF THEIR DOMESTIC AND RURAL CONSUMERS ("RECHARGE NEW YORK HYDRO-
POWER"), AND (2) POWER PROCURED BY THE AUTHORITY THROUGH MARKET SOURCES,
A COMPETITIVE PROCUREMENT PROCESS, OR AUTHORITY SOURCES (OTHER THAN THE
NIAGARA AND SAINT LAWRENCE PROJECTS) (COLLECTIVELY OR INDIVIDUALLY,
"RECHARGE NEW YORK MARKET POWER"); PROVIDED, HOWEVER, THAT IF SUCH
RECHARGE NEW YORK MARKET POWER COMES FROM AUTHORITY SOURCES, THE USE OF
THAT POWER SHALL NOT REDUCE THE AVAILABILITY OF, OR CAUSE AN INCREASE IN
THE PRICE OF, POWER PROVIDED BY THE AUTHORITY FOR ANY OTHER PROGRAM
AUTHORIZED IN THIS ARTICLE OR PURSUANT TO ANY OTHER STATUTE.
(C) NOTWITHSTANDING SECTION ONE THOUSAND NINE OF THIS TITLE OR ANY
OTHER PROVISION OF LAW TO THE CONTRARY, THE AUTHORITY IS AUTHORIZED,
BEGINNING JULY FIRST, TWO THOUSAND TWELVE, TO MAKE AVAILABLE, CONTRACT
WITH AND SELL TO SUCH ELIGIBLE APPLICANTS AS ARE RECOMMENDED BY THE
ECONOMIC DEVELOPMENT POWER ALLOCATION BOARD UP TO NINE HUNDRED TEN MEGA-
WATTS OF RECHARGE NEW YORK POWER FOR RECHARGE NEW YORK POWER ALLO-
CATIONS. A RECHARGE NEW YORK POWER ALLOCATION SHALL CONSIST OF EQUAL
PARTS OF RECHARGE NEW YORK HYDROPOWER AND RECHARGE NEW YORK MARKET POWER
AS SUCH TERMS ARE DEFINED IN PARAGRAPH (B) OF THIS SUBDIVISION;
PROVIDED, HOWEVER, THAT PRIOR TO ENTERING INTO A CONTRACT WITH AN ELIGI-
BLE APPLICANT FOR THE SALE OF RECHARGE NEW YORK POWER, AND PRIOR TO THE
PROVISION OF ELECTRIC SERVICE RELATING TO THE RECHARGE NEW YORK POWER
ALLOCATION, THE AUTHORITY SHALL OFFER EACH ELIGIBLE APPLICANT THE OPTION
TO DECLINE TO PURCHASE THE RECHARGE NEW YORK MARKET POWER COMPONENT OF
SUCH ALLOCATION. IF AN ELIGIBLE APPLICANT DECLINES TO PURCHASE SUCH
MARKET POWER FROM THE AUTHORITY, THE AUTHORITY SHALL HAVE NO RESPONSI-
BILITY FOR SUPPLYING SUCH MARKET POWER TO THE ELIGIBLE APPLICANT.
S 4. Section 1005 of the public authorities law is amended by adding a
new subdivision 13-b to read as follows:
13-B. RESIDENTIAL CONSUMER DISCOUNT PROGRAMS. (A) RESIDENTIAL CONSUM-
ER ELECTRICITY COST DISCOUNT. NOTWITHSTANDING ANY PROVISION OF THIS
S. 3164 7
TITLE OR ARTICLE SIX OF THE ECONOMIC DEVELOPMENT LAW TO THE CONTRARY,
THE AUTHORITY IS AUTHORIZED, AS DEEMED FEASIBLE AND ADVISABLE BY THE
TRUSTEES, TO USE REVENUES FROM THE SALE OF HYDROELECTRIC POWER, AND SUCH
OTHER FUNDS OF THE AUTHORITY AS DEEMED FEASIBLE AND ADVISABLE BY THE
TRUSTEES, TO FUND MONTHLY PAYMENTS TO BE MADE FOR THE BENEFIT OF SUCH
CLASSES OF ELECTRICITY CONSUMERS AS ENJOYED THE BENEFITS OF AUTHORITY
HYDROELECTRIC POWER WITHDRAWN PURSUANT TO SUBDIVISION THIRTEEN-A OF THIS
SECTION, FOR THE PURPOSE OF MITIGATING PRICE IMPACTS ASSOCIATED WITH THE
REALLOCATION OF SUCH POWER IN THE MANNER DESCRIBED IN THIS SUBDIVISION.
SUCH MONTHLY PAYMENTS SHALL COMMENCE AFTER SUCH HYDROELECTRIC POWER IS
WITHDRAWN. THE TOTAL ANNUAL AMOUNT OF MONTHLY PAYMENTS FOR EACH OF THE
THREE TWELVE MONTH PERIODS FOLLOWING WITHDRAWAL OF SUCH HYRDOELECTRIC
POWER SHALL BE ONE HUNDRED MILLION DOLLARS. THE TOTAL ANNUAL AMOUNT OF
MONTHLY PAYMENTS FOR EACH OF THE TWO SUBSEQUENT TWELVE MONTH PERIODS
SHALL BE SEVENTY MILLION DOLLARS AND FIFTY MILLION DOLLARS, RESPECTIVE-
LY. THEREAFTER, THE TOTAL ANNUAL AMOUNT OF MONTHLY PAYMENTS FOR EACH
TWELVE MONTH PERIOD SHALL BE THIRTY MILLION DOLLARS. THE TOTAL AMOUNT
OF MONTHLY PAYMENTS SHALL BE APPORTIONED BY THE AUTHORITY AMONG THE
UTILITY CORPORATIONS THAT, PRIOR TO THE EFFECTIVE DATE OF THIS SUBDIVI-
SION, PURCHASED SUCH HYDROELECTRIC POWER FOR THE BENEFIT OF THEIR DOMES-
TIC AND RURAL CONSUMERS ACCORDING TO THE RELATIVE AMOUNTS OF SUCH POWER
PURCHASED BY SUCH CORPORATIONS. THE MONTHLY PAYMENTS SHALL BE CREDITED
TO THE ELECTRICITY BILLS OF SUCH CORPORATIONS' DOMESTIC AND RURAL
CONSUMERS IN A MANNER TO BE DETERMINED BY THE PUBLIC SERVICE COMMISSION
OF THE STATE OF NEW YORK. THE MONTHLY CREDIT PROVIDED BY ANY SUCH
CORPORATION TO ANY ONE CONSUMER SHALL NOT EXCEED THE TOTAL MONTHLY ELEC-
TRIC UTILITY COST INCURRED BY SUCH CONSUMER.
(B) AGRICULTURAL CONSUMER ELECTRICITY COST DISCOUNT. (1) BEGINNING
WITH THE SECOND TWELVE MONTH PERIOD AFTER SUCH HYDROELECTRIC POWER IS
WITHDRAWN, UP TO EIGHT MILLION DOLLARS OF THE RESIDENTIAL CONSUMER ELEC-
TRICITY COST DISCOUNT ESTABLISHED BY PARAGRAPH (A) OF THIS SUBDIVISION
SHALL BE DEDICATED FOR MONTHLY PAYMENTS TO AGRICULTURAL PRODUCERS WHO
RECEIVE ELECTRIC SERVICE AT THE RESIDENTIAL RATE. THE TOTAL AMOUNT OF
MONTHLY PAYMENTS SHALL BE APPORTIONED BY THE AUTHORITY AMONG THE UTILITY
CORPORATIONS IN THE SAME MANNER AS THEY ARE APPORTIONED IN PARAGRAPH (A)
OF THIS SUBDIVISION. MONTHLY PAYMENTS SHALL BE CREDITED TO THE ELECTRIC-
ITY BILLS OF SUCH CORPORATIONS' AGRICULTURAL CONSUMERS IN A MANNER TO BE
DETERMINED BY THE PUBLIC SERVICE COMMISSION OF THE STATE OF NEW YORK.
THE COMBINED MONTHLY CREDIT, UNDER THIS PARAGRAPH AND PARAGRAPH (A) OF
THIS SUBDIVISION, PROVIDED BY ANY SUCH CORPORATION TO ANY ONE CONSUMER
SHALL NOT EXCEED THE TOTAL MONTHLY ELECTRIC UTILITY COST INCURRED BY
SUCH CONSUMER.
(2) THE AUTHORITY SHALL WORK COOPERATIVELY WITH THE DEPARTMENT OF
PUBLIC SERVICE TO EVALUATE THE AGRICULTURAL CONSUMER ELECTRICITY COST
DISCOUNT, WHICH SHALL INCLUDE AN ASSESSMENT OF THE BENEFITS TO RECIPI-
ENTS COMPARED TO THE BENEFITS THE RECIPIENTS RECEIVED FROM THE AUTHORI-
TY'S HYDROELECTRIC POWER, WITHDRAWN PURSUANT TO SUBDIVISION THIRTEEN-A
OF THIS SECTION, DURING THE TWELVE MONTH PERIOD ENDING DECEMBER THIRTY-
FIRST, TWO THOUSAND TEN, AND COMPARED TO OTHER AGRICULTURAL CONSUMERS
THAT DID NOT CHOOSE TO RECEIVE THE DISCOUNT.
S 5. Section 1005 of the public authorities law is amended by adding a
new subdivision 18 to read as follows:
18. FOR THE PURPOSE OF FURNISHING THE STATE WITH SYSTEMATIC INFORMA-
TION REGARDING THE STATUS AND THE ACTIVITIES OF THE AUTHORITY, THE
AUTHORITY SHALL SUBMIT TO THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE
SENATE, SPEAKER OF THE ASSEMBLY, THE MINORITY LEADER OF THE SENATE AND
S. 3164 8
THE MINORITY LEADER OF THE ASSEMBLY, WITHIN NINETY DAYS AFTER THE END OF
ITS FISCAL YEAR, A COMPLETE AND DETAILED ANNUAL REPORT ON EACH ECONOMIC
DEVELOPMENT POWER PROGRAM IT ADMINISTERS. SUCH ANNUAL REPORT SHALL
INCLUDE, BUT NOT BE LIMITED TO, THE FOLLOWING INFORMATION:
A. THE NUMBER OF RECIPIENTS OF ECONOMIC POWER PROGRAM BENEFITS, THE
ECONOMIC REGION IN WHICH EACH RECIPIENT IS LOCATED, THE TYPE AND AMOUNT
OF ASSISTANCE PROVIDED, MEGAWATTS OF POWER AWARDED, LENGTH OF CURRENT
CONTRACT, CURRENT CONTRACT COMPLIANCE STATUS, LAST AUDIT, NUMBER OF JOBS
RETAINED AND/OR ADDED IN THE FISCAL YEAR, APPROXIMATE ENERGY EFFICIENCY
SAVINGS AND AMOUNT OF POWER REALLOCATED FROM PREVIOUS YEARS DUE TO
FORFEITED BENEFITS; AND
B. COST TO THE AUTHORITY TO PROVIDE ECONOMIC DEVELOPMENT POWER
PROGRAMS DURING THE PREVIOUS FISCAL YEAR.
S 6. Transitional electricity discount. Notwithstanding any provision
of title 1 of article 5 of the public authorities law or article 6 of
the economic development law to the contrary, with respect to applicants
who are in substantial compliance with all contractual commitments and
receiving benefits under the power for jobs, energy cost savings bene-
fit, economic development, high load factor or municipal distribution
agency programs, but do not receive a recommendation from the New York
state economic development power allocation board for a recharge New
York power allocation pursuant to section 188-a of the economic develop-
ment law, such board shall recommend that the power authority of the
state of New York provide for a transitional electricity discount to
such applicants. The power authority of the state of New York is author-
ized, as deemed feasible and advisable by the trustees, to provide such
transitional electricity discounts as recommended by the New York state
economic development power allocation board. The power authority of the
state of New York shall identify and advise such board whether suffi-
cient funds are available for the funding of such transitional electric-
ity discounts through June 30, 2016. The amount of the transitional
electricity discount for the period July 1, 2012 through June 30, 2014
shall be equivalent to 66 percent of the unit (per kilowatt-hour) value
of the savings received by the applicant under the power for jobs or
energy cost savings benefit programs during the 12 months ending on
December 31, 2010. The amount of the transitional electricity discount
for the period July 1, 2014 through June 30, 2016 shall be equivalent to
33 percent of the unit (per kilowatt-hour) value of the savings received
by the applicant under the power for jobs or energy cost savings benefit
programs during the 12 months ending on December 31, 2010.
S 7. 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
311 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 [May 15, 2011] JUNE 30, 2012.
S 8. 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 311 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
S. 3164 9
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 [May
15, 2011] JUNE 30, 2012.
S 9. Paragraphs 2 and 4 of subdivision (h) of section 183 of the
economic development law, as amended by chapter 311 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 [May fifteenth, two thousand eleven] JUNE THIRTIETH, TWO
THOUSAND TWELVE eligible businesses 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 poli-
tical 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 [May fifteenth, two thousand eleven]
JUNE THIRTIETH, TWO THOUSAND TWELVE. 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 available authority
resources as deemed feasible and advisable by the trustees pursuant to
section seven of part U of chapter fifty-nine of the laws of two thou-
sand 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
thirtieth, two thousand nine] MAY FIFTEENTH, TWO THOUSAND ELEVEN through
[May fifteenth, two thousand eleven] JUNE THIRTIETH, TWO THOUSAND
TWELVE, 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. 3164 10
S 10. The opening paragraph of paragraph 5 of subdivision (a) of
section 189 of the economic development law, as amended by chapter 311
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 [May
fifteenth] JUNE THIRTIETH, two thousand [eleven] TWELVE. 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 delivery per kilowatt-hour for the quantity of electricity
purchased and delivered under the power for jobs program during a simi-
lar period in the final year of the recipient's contract), results in an
effective unit cost of electricity during the quarter equal to the aver-
age 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, PROVIDED HOWEVER THAT NOTWITHSTANDING THE FORE-
GOING, FOR THE PERIOD JULY FIRST, TWO THOUSAND ELEVEN THROUGH JUNE THIR-
TIETH, TWO THOUSAND TWELVE, THE BASIC REIMBURSEMENT SHALL BE AN AMOUNT
SUCH THAT THE RECIPIENT RECEIVES UNIT (PER KILOWATT-HOUR) ELECTRICITY
SAVINGS EQUIVALENT TO THE AVERAGE UNIT ELECTRICITY SAVINGS RECEIVED
DURING THE TWELVE MONTHS ENDING ON DECEMBER THIRTY-FIRST, TWO THOUSAND
TEN.
S 11. Subdivisions (f) and (l) of section 189 of the economic develop-
ment law, as amended by chapter 311 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
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 [May
fifteenth, two thousand eleven] JUNE THIRTIETH, TWO THOUSAND TWELVE.
Notwithstanding any provision of law to the contrary, and, in partic-
S. 3164 11
ular, 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 allocated 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 expiration, pending the
filing and approval of an application by such recipient for an allo-
cation 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 authority of the state of New York
from a date beginning no earlier than the first day of December, two
thousand four and extending through [May fifteenth, two thousand eleven]
JUNE THIRTIETH, TWO THOUSAND TWELVE.
(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] MAY FIFTEENTH, TWO THOUSAND ELEVEN through [May fifteenth, two
thousand eleven] JUNE THIRTIETH, TWO THOUSAND TWELVE, 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
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 [May fifteenth, two thousand eleven] JUNE THIRTIETH, TWO THOUSAND
TWELVE. 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 12. Subdivision 9 of section 186-a of the tax law, as amended by
chapter 217 of the laws of 2009, is amended to read as follows:
9. Notwithstanding any other provision of this chapter or any other
law to the contrary, for taxable periods nineteen hundred ninety-seven
through and including two thousand [ten] TWELVE, any utility which
delivers power under the power for jobs program, as established by
S. 3164 12
section one hundred eighty-nine of the economic development law, shall
be allowed a credit, subject to the limitations thereon contained in
this subdivision, against the tax imposed under this section equal to
net lost revenues from the delivery of power under such power for jobs
program. Net lost revenues means the "net receipts" less "net utility
revenue" from such delivery of power. For purposes of this subdivision,
"net receipts" shall mean the amount that the utility would have other-
wise received from customers receiving power pursuant to allocations by
the New York state economic development power allocation board in
accordance with section one hundred eighty-nine of the economic develop-
ment law, or from customers whose allocation has been transferred to an
energy service company, or from energy service companies to which such
allocation has been transferred, pursuant to its tariff supervised by
the public service commission for substantially comparable service
otherwise applicable to such customers or energy service companies in
the absence of such designation, less the utility's annual average
incremental short-term variable and capacity costs of providing such
power in the absence of such purchase. For the purposes of this subdivi-
sion, "net utility revenue" shall mean the revenues the utility actually
receives in accordance with such section one hundred eighty-nine from
such customers so designated by the New York state economic development
power allocation board or from customers whose allocation has been
transferred to an energy service company, or from the energy service
companies to which a power for jobs allocation has been transferred,
less the utility's cost of such power under such program. Provided,
however, that any credit under this section shall be used only with
respect to the same taxable year during which such credit arose and
shall not be capable of being carried forward or backward to any other
taxable period. Nor shall any credit be allowed to any utility for the
total amount of power, expressed in kilowatt hours, purchased by the
customers of such utility under such program during the taxable period
that exceeds the prorated "baseline energy use" by all customers of that
utility purchasing power under such program during the taxable period.
"Baseline energy use" with respect to each customer shall mean the larg-
est amount of kilowatt hours of energy used by such customer during any
twelve consecutive month period occurring during the preceding thirty
months immediately preceding the New York state economic development
power allocation board's recommendation of such customer's application,
prorated to reflect the length of time of the customer's participation
in such program during the taxable period. Provided further, however,
that in accordance with subdivision (k) of section one hundred eighty-
nine of the economic development law no tax credit shall be available
for any revenue losses when a utility has declined to purchase power
allocated for sale under such program. No electric corporation shall be
allowed the tax credit authorized by this subdivision until it shall
file a certificate from the department of public service for the period
covered by the return verifying that the calculation of such tax credit
complies with this subdivision and the department of public service has
approved such certificate and forwarded a copy of such approved certif-
icate to the commissioner or any amended certificate resulting from the
need for correction. The credit allowed by this subdivision shall not be
applicable in calculating any other tax imposed or authorized to be
imposed by this chapter or any other law, and the amount of the tax
surcharge imposed under section one hundred eighty-six-c of this article
shall be calculated and payable as if the credit provided for by this
subdivision were not allowed.
S. 3164 13
S 13. Subparagraph 2 of paragraph g of the ninth undesignated para-
graph of section 1005 of the public authorities law, as amended by chap-
ter 217 of the laws of 2009, is amended to read as follows:
2. The authority, as deemed feasible and advisable by the trustees, is
authorized to make payments to recipients of the power for jobs elec-
tricity savings reimbursements and additional annual voluntary contrib-
utions into the state treasury to the credit of the general fund. The
authority shall make such contributions to the state treasury no later
than ninety days after the end of the calendar year in which a credit
under subdivision nine of section one hundred eighty-six-a of the tax
law is available: (a) for the additional three hundred megawatts of
power under the fourth phase of the program provided under chapter
sixty-three of the laws of two thousand and under the fifth phase for
the additional one hundred eighty-three megawatts provided under chapter
two hundred twenty-six of the laws of two thousand two; and (b) for any
extension of any contract for allocations under the fourth phase of the
program and under the fifth phase of the program. Payments for any elec-
tricity savings reimbursement under section one hundred eighty-nine of
the economic development law shall be made pursuant to such section.
Such annual contributions shall be equal to fifty percent of the total
amount of such credits available each year to all local distributors of
electricity. In addition, such authorization for contribution in state
fiscal year two thousand two--two thousand three shall be equal to the
total amount of credit available in two thousand one and two thousand
two; and such authorization for contribution in state fiscal year two
thousand three--two thousand four shall be equal to the total amount of
credit available in two thousand three; under subdivision nine of
section one hundred eighty-six-a of the tax law under the fourth phase
of the program for the additional three hundred megawatts provided under
chapter sixty-three of the laws of two thousand and under the fifth
phase for the additional one hundred eighty-three megawatts provided
under chapter two hundred twenty-six of the laws of two thousand two. In
state fiscal year two thousand four--two thousand five, such authorized
annual contribution shall be equal to one hundred percent of the total
amount of such credits available each year to all local distributors of
electricity. Such authorization for contribution in state fiscal years
two thousand four and two thousand five shall be equal to the total
amount of credit available in two thousand four and two thousand five;
under subdivision nine of section one hundred eighty-six-a of the tax
law under the fourth phase of the program for the additional three
hundred megawatts provided under chapter sixty-three of the laws of two
thousand and under the fifth phase for the additional one hundred eight-
y-three megawatts provided under chapter two hundred twenty-six of the
laws of two thousand two. In addition, such authorization for contrib-
ution for any extension of any contract for allocations under the fourth
phase of the program and under the fifth phase of the program in each
state fiscal year shall be equal to the total amount of credit or
reimbursement available in state fiscal year two thousand four--two
thousand five, state fiscal year two thousand five--two thousand six and
two thousand six--two thousand seven. Additionally, notwithstanding any
other section of law, the authority is authorized to make a contribution
in an amount related to total amounts of credit received under phases
one, two, three, four and five of the program. In no case shall the
contribution for state fiscal year two thousand five--two thousand six
be less than seventy-five million dollars. The contribution for state
fiscal year two thousand six--two thousand seven shall be one hundred
S. 3164 14
million dollars. The contribution for state fiscal year two thousand
seven--two thousand eight shall be thirty million dollars. The contrib-
ution for state fiscal year two thousand eight--two thousand nine shall
be twenty-five million dollars. The contribution for state fiscal year
two thousand nine--two thousand ten shall be twelve million five hundred
thousand dollars. THE CONTRIBUTION FOR STATE FISCAL YEAR TWO THOUSAND
TEN--TWO THOUSAND ELEVEN SHALL BE SEVEN AND ONE-HALF MILLION DOLLARS.
THE CONTRIBUTION FOR STATE FISCAL YEAR TWO THOUSAND ELEVEN--TWO THOUSAND
TWELVE SHALL BE SIX MILLION DOLLARS. The department of public service
shall estimate the payment due by the end of the calendar year in which
the credit is available. In no case shall the amount of the total annual
contributions for the years during which delivery and sale of power
associated with all power for jobs phases and any extensions thereof
takes place exceed the aggregate total of four hundred [sixty-one]
SEVENTY-FIVE million [five hundred thousand] dollars.
S 14. The opening paragraph of subdivision 5 of section 1005 of the
public authorities law, as amended by chapter 294 of the laws of 1968,
is amended to read as follows:
To develop, maintain, manage and operate those parts of the Niagara
and Saint Lawrence hydroelectric projects owned or controlled by it in
such manner as to give effect to the policy hereby declared (and all
plans and acts, and all contracts for the use, sale, transmission and
distribution of the power generated by such projects, shall be made in
the light of, consistent with and subject to this policy), namely, that
such projects shall be in all respects for the aid, improvement, and
benefit of commerce and navigation in, through, along and past the
Niagara river, the Saint Lawrence river and the international rapids
section thereof, and that in the development of hydro-electric power
therefrom such projects shall be considered primarily as for the benefit
of the people of the state as a whole [and particularly the domestic and
rural consumers to whom the power can economically be made available,
and accordingly that sale to and use by industry shall be a secondary
purpose, to be utilized principally to secure a sufficiently high load
factor and revenue returns to permit domestic and rural use at the
lowest possible rates and in such manner as to encourage increased
domestic and rural use of electricity]. In furtherance of this policy
and to secure a wider distribution of such power and use of the greatest
value to the general public of the state, the authority shall in addi-
tion to other methods which it may find advantageous make provision so
that municipalities and other political sub-divisions of the state now
or hereafter authorized by law to engage in the distribution of electric
power may secure a reasonable share of the power generated by such
projects, and shall sell the same or cause the same to be sold to such
municipalities and political subdivisions at prices representing cost of
generation, plus capital and operating charges, plus a fair cost of
transmission, all as determined by the trustees, and subject to condi-
tions which shall assure the resale of such power [to domestic and rural
consumers] at the lowest possible price, provided, however, that in
disposing of hydro-electric power pursuant to and in furtherance of the
aforementioned policy and purposes, appropriate provision may also be
made to allocate a reasonable share of project power to agencies created
or designated by other states and authorized to resell the power to
users under the same terms and conditions as power is disposed of in New
York state. To that end, the authority may provide in any contract or
contracts which it may make for the sale, transmission and distribution
of the power that the purchaser, transmitter or distributor shall
S. 3164 15
construct, maintain and operate, on such terms as the authority may deem
proper, such connecting lines as may be necessary for transmission of
the power from main transmission lines to such municipalities or poli-
tical subdivisions.
S 15. Subdivision 16 of section 1005 of the public authorities law, as
added by chapter 217 of the laws of 2009, is REPEALED.
S 16. Subdivision 16 of section 1005 of the public authorities law, as
added by chapter 477 of the laws of 2009, is renumbered subdivision 17,
and paragraph (a) of such subdivision is amended to read as follows:
(a) As deemed feasible and advisable by the trustees, to finance and
design, develop, construct, implement, provide and administer energy-re-
lated projects, programs and services for any public entity and any
recipient of the economic development power, expansion power, replace-
ment power, preservation power, high load factor power, municipal
distribution agency power, [and the] power for jobs, AND RECHARGE NEW
YORK POWER programs administered by the authority. In establishing and
providing high performance and sustainable building programs and
services authorized by this subdivision, the authority is authorized to
consult standards, guidelines, rating systems, and/or criteria estab-
lished or adopted by other organizations, including but not limited to
the United States green building council under its leadership in energy
and environmental design (LEED) programs, the green building initi-
ative's green globes rating system, and the American National Standards
Institute. The source of any financing and/or loans provided by the
authority for the purposes of this subdivision may be the proceeds of
notes issued pursuant to section one thousand nine-a of this title, the
proceeds of bonds issued pursuant to section one thousand ten of this
title, or any other available authority funds.
S 17. Section 2 of chapter 477 of the laws of 2009, amending the
public authorities law relating to energy efficiency and clean energy
initiatives of the power authority of the state of New York, is amended
to read as follows:
S 2. This act shall take effect immediately [and shall expire three
years after it shall have become a law; provided that such expiration
shall not affect the validity of any energy services contract authorized
by this act and entered into prior to its expiration].
S 18. The opening paragraph of subdivision 6 of section 1005 of the
public authorities law, as amended by chapter 294 of the laws of 1968,
is amended to read as follows:
To develop, maintain, manage and operate its projects other than the
Niagara and Saint Lawrence hydroelectric projects so as (i) to provide
an adequate supply of energy for optimum utilization of its hydroelec-
tric projects, (ii) to attract and expand high load factor industry,
(iii) to provide for the additional needs of its municipal electric and
rural electric cooperative customers, (IV) TO PROVIDE A SUPPLY OF POWER
AND ENERGY FOR USE IN THE RECHARGE NEW YORK POWER PROGRAM AS RECHARGE
NEW YORK MARKET POWER, and [(iv)] (V) to assist in maintaining an
adequate, dependable electric power supply for the state.
S 19. Severability clause. If any clause, sentence, paragraph, subdi-
vision, section or part of this act shall be adjudged by any court of
competent jurisdiction to be invalid, such judgment shall not affect,
impair, or invalidate the remainder thereof, but shall be confined in
its operation to the clause, sentence, paragraph, subdivision, section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
S. 3164 16
the legislature that this act would have been enacted even if such
invalid provisions had not been included therewith.
S 20. This act shall take effect immediately; provided that:
a. the amendments to section 183 of the economic development law made
by section nine of this act shall not affect the expiration of such
section and shall be deemed to expire therewith;
b. the amendments to section 189 of the economic development law made
by sections ten and eleven of this act shall not affect the repeal of
such section and shall be deemed repealed therewith;
c. the amendments to subdivision 9 of section 186-a of the tax law
made by section twelve of this act shall not affect the repeal of such
subdivision and shall be deemed repealed therewith; and
d. the amendments to subparagraph 2 of paragraph g of the 9th undesig-
nated paragraph of section 1005 of the public authorities law made by
section thirteen of this act shall not affect the expiration of such
subparagraph and shall be deemed to expire therewith.
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