senate Bill S7789

2011-2012 Legislative Session

Directs NYS power authority to release requests for proposals on certain natural gas powered generating facilities in New York city

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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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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.1523
Jun 18, 2012 referred to rules


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S7789 - Bill Details

Current Committee:
Law Section:
Public Authorities

S7789 - Bill Texts

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Directs NYS power authority to release requests for proposals on certain natural gas powered generating facilities in New York city.

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An act directing the power authority of the state of New York to
release requests for proposals on certain natural gas powered
generating facilities in and around New York city.

To authorize the sale of certain assets of the New York Power
Authority (NYPA) in order to establish a fund to encourage repowering
of electric generating facilities.

Section one of the bill directs NYPA to issue requests for proposals
(RFP) for the purchase of up to ten of NYPA's gas turbine electric
generating facilities located in and around New York City.

Section 1 also requires NYPA to deposit proceeds from the sale of such
facilities into a special fund for the purposes of (i) incentivizing
the repowering of certain electric generating facilities and (ii)
funding programs to assist municipal corporations that have been
adversely affected by the loss of property tax revenues and/or
revenues from payments in lieu of tax agreements.

Section 2 is the effective date.

Many power plants in NYS are contemplating repowering in order to
improve their competitive position in the marketplace. These power
plants are prevented from taking steps to repower because of the high
costs associated with doing so. By establishing a fund specifically
for this purpose, power plants will be incented to invest in
re-powering which will lead to improved emissions profiles and long
term economic viability.

In addition, these power plants often represent a significant portion
of the tax base for the municipality where they are located. Loss of
such tax base will be devastating for these communities. In the event
that power plants close or downsize, funds should be made available to
these municipalities as they transition to becoming less reliant on
the power plant taxes. To that end, this bill also provides for
funding to be available to assist these communities in these difficult

Another substantial benefit of this legislation is the transition of
the identified older gas plants from public ownership to private
ownership. The sale of these small, natural gas-powered facilities in
an around New York City will bring in significant revenue to help
during these tough economic times, while also securing future tax
revenues to benefit the state for years to come. Furthermore,
operating costs associated with these facilities no longer will be a
burden on NYPA, as all costs and risks associated with owning and
operating the facilities would be on the shoulders of private

It would not be the first time that NYPA sold some of its assets to
the private sector. As it is likely that the private sector would be

interested in NYPA's small generation facilities as well. While it is
impossible to predict potential offers, it should be noted that, in
2008, TransCanada Corporation purchased the Ravenswood Generating
Facility in Queens from National Grid for $2.8 billion---a price that
exceeded expectations and demonstrates the level of interest that the
private sector takes in worthwhile assets.

New bill.



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


                            I N  S E N A T E

                              June 18, 2012

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

AN ACT directing the power authority of the state of New York to release
  requests for proposals  on  certain  natural  gas  powered  generating
  facilities in and around New York city


  Section 1. (a) The power authority of the  state  of  New  York  shall
within  ninety  days  of the effective date of this act, issue a request
for the proposals to purchase from such authority one or more of the ten
gas turbine electric generating facilities with a nameplate capacity  of
less  than  eighty  megawatts  each,  owned  by such authority as of the
effective date of this act and located in and around  the  city  of  New
York.  Such  request  for proposals to sell such generators shall be put
out for bid for a maximum of ninety days and shall include the following
sites and generation facilities:
  (1) Two units at Harlem River Yard Plant, located in the Harlem  River
Yards, at E. 132nd Street, Bronx, New York 10454;
  (2)  Two  units  at  Vernon  Boulevard, located at 41-98, 42-02, 42-16
Vernon Boulevard, Long Island City, Queens, New York 11101;
  (3) Two units at the Hell Gate Plant, located  at  Locust  Avenue,  E.
132nd Street to E. 134th Street, Bronx, New York 10454;
  (4)  Two  units  at  the  Windsor  Terrace Power Plant, located at 3rd
Avenue and 23rd Street, Brooklyn, New York 11232;
  (5) One unit at Pouch Terminal; located at 1 Edgewater Street,  Staten
Island, New York 10305; and
  (6)  One unit at North First Avenue and River Street, located at 47-79
River Street, Brooklyn, New York 11211.
  (b) The authority shall issue such requests to determine, among  other
things,  the likely value to New York state for the sale of such genera-
tors. The authority shall, within thirty days of the end of  the  solic-
itation  period,  report on the range of solicited bids to the governor,
the temporary president of the senate and the speaker of  the  assembly,
subject  to  all appropriate and applicable confidentiality requirements

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

S. 7789                             2

with respect to individual bids and information contained  therein.  The
authority  shall  commence actions, as the authority's board of trustees
determines appropriate and necessary, to effectuate  the  sale  of  such
  (c)  The  authority is authorized and directed to deposit the proceeds
of the sale of such generators into a special account to be administered
by the New York  Energy  Research  and  Development  Authority  for  the
purposes  of  (i)  incentivizing the repowering of load bearing electric
generating facilities that currently meet or exceed the  minimum  stand-
ards  established  in  the  final rule of the proposed National Emission
Standards for Hazardous Air Pollutants provided that the eligible plants
agree to repower such facility and construct new  or  retrofit  existing
electric  generators,  and (ii) for other associated upgrades, including
but not limited to the construction or  improvement  of  energy  related
  To  the  extent  practicable,  funds  shall  also be made available to
provide assistance to municipal corporations as defined in  section  102
of  the  real  property  tax law, that have been substantially adversely
impacted by the loss of property tax revenues or the  loss  of  revenues
from  payments  in  lieu of taxes due to the closing of a major electric
generating facility.
  S 2. This act shall take effect immediately.


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