Senate Bill S5406A

2011-2012 Legislative Session

Directs the New York state power authority to issue RFPs on certain gas turbine generators installed in and around the New York metropolitan area

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Archive: Last Bill Status - In Senate Committee Corporations, Authorities And Commissions Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 04, 2012	referred to corporations, authorities and commissions
Jun 10, 2011	print number 5406a
Jun 10, 2011	amend and recommit to corporations, authorities and commissions
May 18, 2011	referred to corporations, authorities and commissions

Bill Amendments

Original

A (Active)

co-Sponsors

2011-S5406 - Details

Current Committee:: Senate Corporations, Authorities And Commissions
Law Section:: Public Authorities
Versions Introduced in Other Legislative Sessions:: 2009-2010: S7208
2013-2014: S4426
2015-2016: S4562

2011-S5406 - Summary

Directs the New York state power authority to issue requests for proposals on certain gas turbine generators installed in and around the New York metropolitan area.

2011-S5406 - Sponsor Memo

                                BILL NUMBER:S5406

TITLE OF BILL:
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

PURPOSE OR GENERAL IDEA OF BILL:
To raise revenue for the authority through the sale of numerous
"peaker" generators in and around New York City to provide resources
for alternative energy generation projects within the City.

SUMMARY OF SPECIFIC PROVISIONS:
Section 1. Outlines that the New York Power Authority shall issue an
RFP for 10 gas turbine electric generating facilities.

Directs the authority to report on the range of solicited bids to the
governor, the temporary president of the senate, and the speaker of
assembly. NYPA is also authorized to use resources generated from the
sale of one or more of these ten peaking facilities for the support
of alternative energy generation projects within New York City.

Section 2: States this act shall take effect immediately.

JUSTIFICATION:
New York City faces considerable obstacles in moving toward a greater
reliance on alternative energy sources. It is the interest of the
citizens of New York City and of the entire state to support new
alternative energy generating projects through the transfer of
publicly owned and operated traditional power entities within the
five boroughs to private entities committed to service and technology
upgrades.

Revenues raised from such sales or transfers should be used to
encourage the goals of PlaNYC for a cleaner and more reliable energy
future.

An ideal candidate for such an endeavor is the New York Power
Authority (NYPA). NYPA should issue a Request for Proposals (RFP) to
sell its small, natural gas-powered facilities in an around New York
City, thereby providing independent power producers with the
opportunity to help trim the budget shortfall while, as the same
time, applying their expertise to the operation of those facilities.
If an RFP for those generating facilities was issued, it is possible
for NYPA to bring in significant revenue to apply to the city's and
state's future energy requirements. Such transactions should also
benefit the city and state for years to come through the increased
tax revenues that should be realized on an ongoing basis.

In the Summer of 2001, NYPA began operating ten natural gas-powered
generating facilities at six sites in New York city, thereby adding
approximately 450 megawatts of energy to NPA's portfolio. These
facilities were intended to be used as "peaker" plants, needed only


in times of extremely high demand or in case of emergency. The
existence and use of these units by a public entity has been
controversial since the onset, and moving these traditional
petrochemical powered units to the private sector would allow NYPA
the opportunity to help move the city into a brighter and cleaner
future through the support of alternative energy projects such as
solar arrays, wind and tidal generation in partnership with
independent private generators.

It would not be the first time that NYPA sold some of its property to
the private sector, and it is likely that interested investors would
be attracted to 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 attention that
the private sector takes in worthwhile assets.

PRIOR LEGISLATIVE HISTORY:
New Bill.

FISCAL IMPLICATIONS:
Are only approximate at this time. The RFP will provides with an
accurate value, but recent estimates put the value at a minimum of
$200 million apiece.

EFFECTIVE DATE:
This act shall take effect immediately.

2011-S5406 - Bill Text download pdf

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

                                  5406

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                              May 18, 2011
                               ___________

Introduced  by  Sen.  GOLDEN -- read twice and ordered printed, and when
  printed to be committed to the Committee on Corporations,  Authorities
  and Commissions

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

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

  Section 1. (a) The power authority of the state of New York ("authori-
ty")  shall  within  90  days of the effective date of this act, issue a
request for the proposals to purchase from the authority one or more  of
the  ten  gas  turbine  electric  generating facilities with a nameplate
capacity of less than 80 megawatts each, owned by the  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 90 days and  shall  include  the  following
sites and generating 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-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11722-01-1

S. 5406                             2

tors. The authority shall, within 30 days of the end of the solicitation
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
with respect to individual bids and information contained therein.
  (c) The authority, as its trustees deem feasible and in  the  interest
of  the  authority  and  the citizens of the state of New York, shall be
authorized to permit the sale of one or more  of  the  turbine  electric
facilities listed in subdivision (a) of this section. Revenues collected
from  such  sale  or sales shall be used to encourage alternative energy
generation, transmission and delivery within a city of  one  million  or
more in the state of New York.
  S 2. This act shall take effect immediately.

co-Sponsors

2011-S5406A (ACTIVE) - Details

Current Committee:: Senate Corporations, Authorities And Commissions
Law Section:: Public Authorities
Versions Introduced in Other Legislative Sessions:: 2009-2010: S7208
2013-2014: S4426
2015-2016: S4562

2011-S5406A (ACTIVE) - Summary

Directs the New York state power authority to issue requests for proposals on certain gas turbine generators installed in and around the New York metropolitan area.

2011-S5406A (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S5406A

TITLE OF BILL:
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

PURPOSE OR GENERAL IDEA OF BILL:
To raise revenue for the authority through the sale of numerous
"peaker" generators in and around New York City to provide resources
for 'alternative energy generation projects within the City.

SUMMARY OF SPECIFIC PROVISIONS:
Section 1. Outlines that the New York Power Authority shall issue an
RFP for 10 gas turbine electric generating facilities.

Directs the authority to report on the range of solicited bids to the
governor, the temporary president of the senate, and the speaker of
assembly. NYPA is also authorized to use resources generated from the
sale of one or more of these ten peaking facilities for the support
of alternative energy generation projects within New York City.

Section 2: States this act shall take effect immediately.

JUSTIFICATION:
New York City faces considerable obstacles in moving toward a greater
reliance on alternative energy sources. It is the interest of the
citizens of New York City and of the entire state to support new
alternative energy generating projects through the transfer of
publicly owned and operated traditional power entities within the
five boroughs to private entities committed to service and technology
upgrades.

Revenues raised from such sales or transfers should be used to
encourage the goals of PlaNYC for a cleaner and more reliable energy
future.

An ideal candidate for such an endeavor is the New York Power
Authority (NYPA). NYPA should issue a Request for Proposals (RFP) to
sell its small, natural gas-powered facilities in an around New York
City, thereby providing independent power producers with the
opportunity to help trim the budget shortfall while, as the same
time, applying their expertise to the operation of those facilities.
If an RFP for those generating facilities was issued, it is possible
for NYPA to bring in significant revenue to apply to the city's and
state's future energy requirements. Such transactions should also
benefit the city and state for years to come through the increased
tax revenues that should be realized on an ongoing basis.

In the Summer of 2001, NYPA began operating ten natural gas-powered
generating facilities at six sites in New York city, thereby adding
approximately 450 megawatts of energy to NPA's portfolio. These
facilities were intended to be used as "peaker" plants, needed only


in times of extremely high demand or in case of emergency. The
existence and use of these units by a public entity has been
controversial since the onset, and moving these traditional
petrochemical powered units to the private sector would allow NYPA
the opportunity to help move the city into a brighter and cleaner
future through the support of alternative
energy projects such as solar arrays, wind and tidal generation in
partnership with independent private generators.

It would not be the first time that NYPA sold some of its property to
the private sector, and it is likely that interested investors would
be attracted to 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 attention that
the private sector takes in worthwhile assets.

PRIOR LEGISLATIVE HISTORY:
New Bill.

FISCAL IMPLICATIONS:
Are only approximate at this time. The RFP will provides with an
accurate value, but recent estimates put the value at a minimum of
$200 million apiece.

EFFECTIVE DATE:
This act shall take effect immediately.

2011-S5406A (ACTIVE) - Bill Text download pdf

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

                                 5406--A

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                              May 18, 2011
                               ___________

Introduced by Sens. GOLDEN, LANZA -- read twice and ordered printed, and
  when printed to be committed to the Committee on Corporations, Author-
  ities  and  Commissions -- committee discharged, bill amended, ordered
  reprinted as amended and recommitted to said committee

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

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

  Section 1. (a) The power authority of the state of New York ("authori-
ty") shall within 90 days of the effective date of  this  act,  issue  a
request  for the proposals to purchase from the authority one or more of
the ten gas turbine electric  generating  facilities  with  a  nameplate
capacity  of  less  than 80 megawatts each, owned by the 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 90 days and shall include the following
sites and generating 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.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11722-02-1

S. 5406--A                          2

  (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 30 days of the end of the solicitation
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
with respect to individual bids and information contained therein.
  (c)  The  authority, as its trustees deem feasible and in the interest
of the authority and the citizens of the state of  New  York,  shall  be
authorized  to  permit  the  sale of one or more of the turbine electric
facilities listed in subdivision (a) of this section. Revenues collected
from such sale or sales shall be used to  encourage  alternative  energy
generation,  transmission  and delivery, including ultra-high efficiency
cogeneration or tri-generation plants, within a city of one  million  or
more  in  the  state of New York.  Furthermore, the authority shall only
authorize such alternative  energy  projects  following  a  request  for
proposals  to select qualified private entities for public private part-
nership ventures consistent with the stated goal of the  updated  PlaNYC
2030  to ensure that future New Yorkers have access to clean, affordable
and reliable power, through the  encouragement  of  a  more  diversified
portfolio of private sector-driven supply and transmission investments.
  S 2. This act shall take effect immediately.

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Senate Bill S5406A

Sponsored By

Archive: Last Bill Status - In Senate Committee Corporations, Authorities And Commissions Committee

Actions

Bill Amendments

co-Sponsors

2011-S5406 - Details

2011-S5406 - Summary

2011-S5406 - Sponsor Memo

2011-S5406 - Bill Text download pdf

co-Sponsors

2011-S5406A (ACTIVE) - Details

2011-S5406A (ACTIVE) - Summary

2011-S5406A (ACTIVE) - Sponsor Memo

2011-S5406A (ACTIVE) - Bill Text download pdf

Comments

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Sponsored By

Martin J. Golden

Archive: Last Bill Status - In Senate Committee Corporations, Authorities And Commissions Committee

Actions

Bill Amendments

co-Sponsors

Andrew J. Lanza

2011-S5406 - Details

2011-S5406 - Summary

2011-S5406 - Sponsor Memo

2011-S5406 - Bill Text download pdf

co-Sponsors

Andrew J. Lanza

2011-S5406A (ACTIVE) - Details

2011-S5406A (ACTIVE) - Summary

2011-S5406A (ACTIVE) - Sponsor Memo

2011-S5406A (ACTIVE) - Bill Text download pdf

Comments