senate Bill S7767

2011-2012 Legislative Session

Directs the power authority to conduct an analysis of the economic viability of load producing electric generating facilities

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Archive: Last Bill Status - Passed Senate


  • 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
Jun 21, 2012 referred to corporations, authorities and commissions
delivered to assembly
passed senate
ordered to third reading cal.1521
Jun 18, 2012 referred to rules

Votes

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Co-Sponsors

S7767 - Bill Details

Current Committee:
Law Section:
Authorities

S7767 - Bill Texts

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Directs the power authority to conduct an analysis of the economic viability of load producing electric generating facilities for the purpose of determining the feasibility of entering into power purchasing agreements with such facilities.

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BILL NUMBER:S7767

TITLE OF BILL:
An act
to require the power authority of the state of New York
to conduct an analysis of the
economic viability of certain electric generating facilities

PURPOSE:
This act would require the New York power authority to conduct an
analysis of the economic viability of load producing electric
generating facilities.

SUMMARY OF PROVISIONS:
Section 1 provides that the New York State Power Authority (NYPA)
shall conduct an analysis of the current economic viability of base
load producing electric generating facilities in the state. Based on
such analysis, and as deemed feasible and advisable by the NYPA
board, the Board shall then recommend entering into a purchase power
agreement with such facilities for at least three years.

It also provides that the eligibility for the purchase power
agreements shall be for those electric generating facilities that
currently meet or exceed the minimum standards established in the
final rule of the proposed National Emission Standards for Hazardous
Air Pollutants and stipulates that eligible plants must agree to
repower such facilities and construct new or retrofit existing
electric generators.

Further, it provides that the electric generating facilities would
have to safely demolish or decommission their existing generators and
place new generators in service no later than March 2017.

Section 3 provides that power purchased by NYPA pursuant to such
agreement with these facilities shall be considered Recharge New York
power and shall be utilized to augment Recharge New York power
allocations for eligible businesses.

EXISTING LAW:
Chapter 60 of the laws of 2011 established the Recharge New York power
allocation program.

JUSTIFICATION:
This new bill would authorize the New York power Authority (NYPA) to
enter into a purchase power agreement with existing coal plants
situated in
the state, using the purchased energy to supplement the state's
ReCharge NY program, which is designed to retain and create jobs
through allocations of economic development incentives to employers.

Power plants in the state have faced enormous fiscal challenges
recently Due to the fact that the transmission lines in the state
have not been given badly needed upgrades, plants have not been able
to stay competitive and get their energy delivered to where it is
needed in other parts of the state.


Power plants in the state, particularly in Western New York,
contribute significantly to the people and the economy of the region
by employing hundreds of New Yorkers with high paying jobs and
providing millions of dollars a year in direct benefits to the state
and local economy. These facilities also pay millions of dollars in
annual property taxes and payments in lieu of taxes agreements making
them, in many areas, the largest taxpayer in the school districts and
municipalities.

The economic benefits of annual labor payments and operational
expenses of power plants, including locally-procured goods and
services, are multiplied across regions. This contribution makes a
huge impact. For example, in Chautauqua County, the NRG power plant
located in the city of Dunkirk contributes Over $20 million in wages
and $10 million in PILOT payments to the school, the city and county
of Chautauqua, and well over $10 million in local goods and services.

Were any of these facilities to go under, or even be reduced in
capacity by any significant margin, it would decimate the financial
Viability of the municipalities and school districts that are already
facing difficult fiscal times.

This bill provides a temporary solution by allowing for NYPA to
conduct an analysis of the minimum resources necessary to maintain
plant operations and to possibly enter into a purchase power
agreement with New York power plants to keep them in operation in the
short term, while state leaders work together on a long term solution
for our ailing power plant infrastructure. It will help avoid the
devastating impact of power plants shutting down and help to maintain
the reliability of the power grid, while keeping jobs in New York.

It is critical that New York State maintains a variety of modes of
power generation to ensure the reliability of the power grid. This
legislation will help New York State to be energy self-sufficient.
For example, the coal plants in Chautauqua and Niagara counties have
just invested millions of dollars in the last few years in
state-of-the-art clean burning technology to comply with federal
Environmental Protection Agency regulations.
For example, the NRG power plant in Dunkirk recently undertook $200
million in clean coal burning technology upgrades. These
state-of-the-art upgrades ensure that the state's energy needs will
be met in the face of unpredictable energy prices and changing demand
for other modes of electricity generation.

The ReCharge NY program is a successful economic development program
that retains and creates jobs by providing low-cost electricity to
attract new businesses and encourage existing firms and
not-for-profit organizations to stay and grow in the state. Under the
ReCharge NY program, when businesses in the state make capital
investments that
support the regional economic development priorities in the state,
they are awarded contracts based on their commitments. This
legislation utilizes the success of the ReCharge NY Program and
further ensures the goals of regional economic development and job
retention in western New York are realized, while helping to avoid
the economic catastrophe should these power plants shut down.


PRIOR LEGISLATIVE HISTORY:
This is a new bill.

EFFECTIVE DATE:
Immediate.

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

                                  7767

                            I N  S E N A T E

                              June 18, 2012
                               ___________

Introduced  by  Sens. YOUNG, MAZIARZ, NOZZOLIO -- read twice and ordered
  printed, and when printed to be committed to the Committee on Rules

AN ACT to require the power authority  of  the  state  of  New  York  to
  conduct  an  analysis  of  the  economic viability of certain electric
  generating facilities

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

  Section  1.  (a) Within 90 days of the effective date of this act, the
power authority of the state of New York shall conduct  an  analysis  of
the  current  economic  viability  of load producing electric generating
facilities, and as deemed feasible and advisable by the board  of  trus-
tees  of  such  authority, taking full consideration of the requirements
and viability of the entire power generating system needs of  the  state
of  New York, with special consideration of the ratepayers and taxpayers
of the state, shall recommend entering into a purchase  power  agreement
with  the  owners  and  operators of such facilities, if such owners and
operators meet and agree upon the conditions in subdivision (b) of  this
section.    Such  power  purchase agreements shall be effective upon the
conclusion of such 90 day period and be designed to maintain said facil-
ities' power production capacities at a rate  sufficient  to  ensure  at
least  three  years  worth  of  no less than a level of operating income
necessary to allow said facilities to remain open and functioning  reli-
ably  and safely and fully staffed at at least ninety percent of current
employment levels,  payrolls  and  local  community  benefits.  For  the
purposes  of  this  subdivision,  operating  income  shall  include  all
expenses of eligible facilities excluding debt service costs, except for
verifiable  debt  service  payments  related  to  capital   improvements
designed  to  substantially  reduce the emission of toxic air pollutants
emanating from generators operating at said facility.
  (b) The power purchase agreement permitted under  subdivision  (a)  of
this  section  shall only apply to power generating units that currently
meet or exceed the minimum standards established in the  final  rule  of
the  proposed  National Emission Standards for Hazardous Air Pollutants.
In addition, such owner and/or operator of a generating  unit  otherwise

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD16060-01-2

S. 7767                             2

eligible  for  benefits  under  this  section must agree to repower such
facility and construct new or retrofit existing generators that:
  1.  are  designed and intended to operate at an electricity production
efficiency level of at least forty-eight percent;
  2. will be capable of producing at least  600  megawatts  of  electric
generating capacity running at least 7,000 hours per year;
  3.  will  be  able  to achieve a 2 parts per million limit for nitrous
oxide emissions using Lowest Achievable Emission Rate technologies;
  4. will utilize Lowest Achievable Emission Rate technologies if feasi-
ble, or, at a minimum, Best Available Control  Technologies  for  carbon
monoxide and sulfur dioxide emission levels;
  5.  will safely demolish or decommission the existing generators at an
eligible facility; and,
  6. will place in service the new  electric  generating  facilities  no
later than March 31, 2017.
  S  2. Notwithstanding any limitations or conditions contained in para-
graph 8 of subdivision (a) and paragraph 7 of subdivision (c) of section
188-a of the economic development law, any power purchased by the  power
authority  of  the state of New York pursuant to section one of this act
shall be considered Recharge New York power, and shall  be  utilized  to
augment  Recharge  New York power allocations for eligible businesses as
defined in paragraph 5 or 7 of subdivision (a) of section 188-a  of  the
economic  development  law  that are recommended for a Recharge New York
power allocation pursuant to part CC of chapter 60 of the laws of 2011.
  S 3. This act shall take effect immediately.

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