S T A T E O F N E W Y O R K
________________________________________________________________________
7172
2011-2012 Regular Sessions
I N A S S E M B L Y
April 14, 2011
___________
Introduced by M. of A. N. RIVERA, CAHILL, MAGNARELLI, COLTON, JAFFEE,
CASTRO, P. RIVERA, STEVENSON, ROBERTS, COOK, ENGLEBRIGHT -- Multi-
Sponsored by -- M. of A. ARROYO, BARRON, BOYLAND, CAMARA, CASTELLI,
CLARK, CRESPO, GOODELL, JEFFRIES, LINARES, MARKEY, MENG, MOYA, RAMOS,
J. RIVERA, RODRIGUEZ, SIMOTAS -- read once and referred to the Commit-
tee on Environmental Conservation
AN ACT providing for the creation of a temporary state commission on the
economic costs and benefits of hydraulic fracturing in New York state;
and providing for the repeal of such provisions upon expiration there-
of
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. A temporary state commission, to be known as the commission
on the economic costs and benefits of hydraulic fracturing in New York
state, hereinafter referred to as the commission, is hereby created to
examine, evaluate, make recommendations and to collect data concerning
the economic impact of hydraulic fracturing on the entire economy of New
York state and the impact on local economies where hydraulic fracturing
will occur. Specifically, such data shall include at least the follow-
ing:
(a) the impact and costs to the housing sector including rental and
home ownership;
(b) the impact on infrastructure including roads and bridges;
(c) the impact on the environment;
(d) the impact on costs to the state for the displacement of individ-
uals and families from affected areas;
(e) the projected public safety costs for municipalities housing
hydraulic operations; and
(f) all foreseen costs to the state from allowing hydraulic fracturing
operations to be established, maintained, operated, dismantled and
decommissioned as well as run dry.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09978-03-1
A. 7172 2
S 2. The commission shall consist of fifteen members, to be appointed
as follows: seven members to be appointed by the governor; three members
to be appointed by the temporary president of the senate and shall
include at least one member of the Business Council of New York State or
the Partnership for New York city and one member of the Sierra Club or
the New York Public Interest Group; three members to be appointed by the
speaker of the assembly and shall include at least one member of the
Business Council of New York State or the Partnership for New York City
and one member of the Sierra Club or the New York Public Interest Group;
one member to be appointed by the minority leader of the senate; and one
member to be appointed by the minority leader of the assembly. The
commission shall be housed at and staffed by the New York state depart-
ment of economic development and of the fifteen appointed members at
least one representative from that agency and each of the following
agencies; department of transportation, division of home and community
renewal, department of environmental conservation, the department of tax
and finance, and the office of temporary and disability assistance. The
governor shall designate the chairperson and vice-chairperson of the
commission. Vacancies in the membership of the commission and among its
officers shall be filled in the manner provided for original appoint-
ments or designations.
S 3. Members of the commission shall receive no compensation for their
services, but shall be allowed their actual and necessary expenses
incurred in the performance of their duties hereunder. To the maximum
extent feasible, the commission shall be entitled to request and receive
and shall utilize and be provided with such facilities, resources, and
data of any court, department, division, board, bureau, commission, or
agency of the state or any political subdivision thereof as it deems
necessary or desirable to carry out properly its powers and duties here-
under.
S 4. The commission may employ and at pleasure remove such personnel
as it may deem necessary for the performance of its functions and fix
their compensation within the amounts made available therefor.
S 5. The commission may meet within and outside the state, shall hold
public hearings, and shall have all the powers of a legislative commit-
tee pursuant to the legislative law.
S 6. (a) The commission shall make and submit its findings, including
any recommendations for legislative action as it may deem necessary and
appropriate in a report to the governor, the temporary president of the
senate, the speaker of the assembly, the minority leader of the senate
and the minority leader of the assembly not later than one hundred
eighty days after it first convenes. Such report shall include:
(1) the overall environmental and social impact of hydraulic fractur-
ing in other states where the industry has been established;
(2) tax collection rates and tax schedules of those states which were
imposed on hydraulic fracturing operations; and
(3) a comparison of the annual revenue collected by the state from
hydraulic operations to costs incurred by those states in maintaining
and repairing infrastructure, cost to remedy displacement of families
and individuals, cost of environmental damage and remediation, cost from
loss of affordable housing due to demand for housing by hydraulic frac-
turing workforce, and any and all related costs to New York state that
will be incurred by hydraulic fracturing operations.
(b) Recommendations included in such report shall include:
(1) a tax structure for hydraulic fracturing firms and operations that
will take into account related costs to New York in order for policy
A. 7172 3
makers to assess any potential tax collection benefits, if any, if full-
scale hydraulic fracturing is allowed to take place in New York;
(2) the projected potential number of total jobs created by hydraulic
fracturing;
(3) the projected revenue from tax collection under current business
tax structure;
(4) the projected number of housing units needed by new workforce; and
(5) the recommended amount of bonding and/or insurance needed for
hydraulic fracturing firms to cover potential natural and/or environ-
mental disasters and/or accidents.
S 7. This act shall take effect immediately; provided that the
appointment of members to the New York state commission on the economic
costs and benefits of hydraulic fracturing shall be completed within
thirty days of such effective date, provided further, that this act
shall remain in effect until thirty days after the commission submits
the report required by section six of this act, at which time this act
shall expire and be deemed repealed.