S T A T E O F N E W Y O R K
________________________________________________________________________
4747
2011-2012 Regular Sessions
I N S E N A T E
April 18, 2011
___________
Introduced by Sen. O'MARA -- read twice and ordered printed, and when
printed to be committed to the Committee on Energy and Telecommuni-
cations
AN ACT to amend the executive law, in relation to the bulk electricity
purchasing program
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The executive law is amended by adding a new section 204 to
read as follows:
S 204. BULK ELECTRICITY PURCHASING PROGRAM. 1. THE OFFICE OF GENERAL
SERVICES, ACTING IN COOPERATION WITH SUCH OTHER GOVERNMENTAL AND
NON-GOVERNMENTAL AGENCIES AS IT MAY DEEM NECESSARY, SHALL ESTABLISH AND
IMPLEMENT EITHER A SINGLE STATEWIDE BULK ELECTRICITY PURCHASING PROGRAM
OR, UTILIZING SUCH GOVERNMENTAL OR NON-GOVERNMENTAL AGENCIES AS MAY BE
NECESSARY, ONE OR MORE REGIONAL BULK FUEL PURCHASING PROGRAMS AS MAY BE
NEEDED. SUCH PROGRAM SHALL:
A. BE AVAILABLE ON A VOLUNTARY BASIS TO MUNICIPALITIES AND SCHOOL
DISTRICTS;
B. PROVIDE FOR THE PURCHASE BY MAY FIRST OF EACH YEAR, AT A BULK RATE,
OF SUFFICIENT QUANTITIES OF ELECTRICITY FOR THE AGENCIES AND DEPARTMENTS
OF THE STATE AND FOR ALL PARTICIPATING MUNICIPALITIES AND SCHOOL
DISTRICTS IN THE AMOUNT EXPECTED TO BE NECESSARY FOR THE COVERED PERIOD;
C. PROVIDE FOR MAINTENANCE RELATED SERVICE, BY THE SUPPLIER OR
DISTRIBUTOR OF THE ELECTRICITY;
D. PROVIDE THAT THE SUPPLIER OR DISTRIBUTOR OF THE ELECTRICITY SHALL
DELIVER SAID FUELS TO THE AGENCIES AND DEPARTMENTS OF THE STATE AND TO
THE PARTICIPATING MUNICIPALITIES AND SCHOOL DISTRICTS ON A REGULAR SCHE-
DULE AS WELL AS ON AN EMERGENCY BASIS.
2. THE OFFICE OF GENERAL SERVICES, IN ESTABLISHING AND IMPLEMENTING A
BULK ELECTRICITY PURCHASING PROGRAM, SHALL ENSURE THAT:
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09723-01-1
S. 4747 2
A. EACH CONTRACT WITH A SUPPLIER OR DISTRIBUTOR, CONSISTENT WITH THE
REQUIREMENTS OF FEDERAL AND STATE LAW, RULES AND REGULATIONS, BE ENTERED
INTO WITH THE LOWEST RESPONSIBLE BIDDER, PRICE AND OTHER FACTORS CONSID-
ERED. OTHER FACTORS SHALL INCLUDE, BUT NOT BE LIMITED TO, RELIABILITY,
FLEXIBILITY OF SERVICE, HISTORY OF SERVICE IN THE AREA, HISTORIC LEVELS
OF DEPENDENCY ON SOURCES OF SUPPLY, AND RELIABILITY AND MIX OF CURRENT
SOURCES OF SUPPLY;
B. EACH CONTRACT WITH A SUPPLIER OR DISTRIBUTOR SHALL INCLUDE, AT NO
ADDITIONAL COST, PROVISIONS FOR SERVICE AND MAINTENANCE;
C. EACH CONTRACT WITH A SUPPLIER OR DISTRIBUTOR SHALL PROVIDE FOR THE
BULK PURCHASE AND DELIVERY BY THE OFFICE WHICH MAY UTILIZE ITS CENTRAL-
IZED CONTRACTS FOR BULK ELECTRICITY IN ACCORDANCE WITH SECTION ONE
HUNDRED SIXTY-THREE OF THE STATE FINANCE LAW;
D. EACH CONTRACT WITH A SUPPLIER OR DISTRIBUTOR OF ELECTRICITY SHALL
PROVIDE THAT ADDITIONAL AMOUNTS OF ELECTRICITY AT THE BULK RATE SHALL BE
AVAILABLE TO THE STATE AND TO ALL PARTICIPATING MUNICIPALITIES AND
SCHOOL DISTRICTS IN SUFFICIENT QUANTITIES IN THE EVENT OF SEVERE EMER-
GENCIES.
3. THE COMMISSIONER OF GENERAL SERVICES, UPON APPLICATION BY THE
OFFICE OF GENERAL SERVICES, MAY GRANT, FOR A YEAR, A WAIVER OF IMPLEMEN-
TATION OF SUBDIVISION TWO OF THIS SECTION. SUCH APPLICATION SHALL BE
GRANTED UPON A SUFFICIENT DEMONSTRATION BY THE OFFICE OF GENERAL
SERVICES THAT, FOR A SPECIFIC GEOGRAPHIC AREA:
A. NO BIDS WERE RECEIVED FROM A DISTRIBUTOR OR SUPPLIER OF ELECTRIC-
ITY;
B. NO BIDS WERE RECEIVED FROM A DISTRIBUTOR OR SUPPLIER OF ELECTRICITY
AT A BULK RATE;
C. INSUFFICIENT NUMBERS OF MUNICIPALITIES AND/OR SCHOOL DISTRICTS HAD
AGREED TO PARTICIPATE IN A BULK PURCHASING PROGRAM, AFTER HAVING BEEN
PROVIDED WITH NOTICE OF POTENTIAL SAVINGS AND AN OPPORTUNITY TO PARTIC-
IPATE; OR
D. THE PROGRAM WOULD NOT RESULT IN ELECTRICITY COSTS TO THE STATE AND
PARTICIPATING MUNICIPALITIES AND SCHOOL DISTRICTS THAT ARE LESS EXPEN-
SIVE THAN ELECTRICITY COSTS OTHERWISE AVAILABLE. THE COMMISSIONER OF
GENERAL SERVICES, UPON GRANTING A WAIVER PURSUANT TO THIS PARAGRAPH,
SHALL SPECIFY, IN WRITING: (I) THE GROUND OR GROUNDS FOR THE GRANTING OF
THE WAIVER AND (II) THE STEPS THAT SHALL BE TAKEN BY THE OFFICE OF
GENERAL SERVICES TO MINIMIZE THE NECESSITY OF A FUTURE APPLICATION FOR A
WAIVER.
4. WHERE FEASIBLE AND APPROPRIATE, EACH BULK ELECTRICITY PURCHASING
PROGRAM SHALL:
A. WHERE BIDDING DEMONSTRATES ITS PRACTICABILITY, INCLUDE AT LEAST TWO
POTENTIAL SUPPLIERS; AND
B. PROVIDE FOR THE BULK PURCHASE, STORAGE AND DELIVERY OF THE ELEC-
TRICITY BY THE OFFICE OF GENERAL SERVICES.
5. THE COMMISSIONER OF GENERAL SERVICES IS HEREBY AUTHORIZED AND
DIRECTED TO ADOPT RULES AND REGULATIONS TO IMPLEMENT THE PROVISIONS OF
THIS SECTION WITHIN SIXTY DAYS OF THE EFFECTIVE DATE OF THIS SECTION.
S 2. This act shall take effect on the ninetieth day after it shall
have become a law.