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WITHDRAWN FROM UTILITY CORPORATIONS THAT, PRIOR TO THE EFFECTIVE DATE OF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.