NY State Senate Bill 2011-S7789

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 - In Assembly 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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Actions

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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

Votes

- Jun 21, 2012 - Floor Vote
  S7789
  
  47
  
  Aye
  
  13
  
  Nay
  
  0
  
  Absent
  
  2
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 21, 2012
      
      aye (47)
      
      Adams
      
      Alesi
      
      Bonacic
      
      Breslin
      
      Carlucci
      
      DeFrancisco
      
      Diaz
      
      Dilan
      
      Duane
      
      Farley
      
      Flanagan
      
      Fuschillo
      
      Gallivan
      
      Golden
      
      Griffo
      
      Grisanti
      
      Hannon
      
      Johnson
      
      Kennedy
      
      Klein
      
      LaValle
      
      Larkin
      
      Libous
      
      Little
      
      Marcellino
      
      Martins
      
      Maziarz
      
      McDonald
      
      Montgomery
      
      Nozzolio
      
      O'Mara
      
      Oppenheimer
      
      Parker
      
      Peralta
      
      Ranzenhofer
      
      Ritchie
      
      Robach
      
      Saland
      
      Sampson
      
      Savino
      
      Seward
      
      Skelos
      
      Smith
      
      Storobin
      
      Valesky
      
      Young
      
      Zeldin
      
      nay (13)
      
      Addabbo Jr.
      
      Avella
      
      Ball
      
      Gianaris
      
      Hassell-Thompson
      
      Krueger
      
      Lanza
      
      Perkins
      
      Rivera
      
      Serrano
      
      Squadron
      
      Stavisky
      
      Stewart-Cousins
      
      excused (2)
      
      Espaillat
      
      Huntley
  Jun 21, 2012 - Rules Committee Vote
  S7789
  
  18
  
  Aye
  
  2
  
  Nay
  
  4
  
  Aye with Reservations
  
  0
  
  Absent
  
  1
  
  Excused
  
  0
  
  Abstained
  - - Rules Committee Vote: Jun 21, 2012
      
      aye (18)
      
      Alesi
      
      Breslin
      
      Farley
      
      Hannon
      
      Hassell-Thompson
      
      Johnson
      
      LaValle
      
      Larkin
      
      Libous
      
      Marcellino
      
      Maziarz
      
      Nozzolio
      
      Parker
      
      Saland
      
      Sampson
      
      Seward
      
      Skelos
      
      Smith
      
      nay (2)
      
      Krueger
      
      Perkins
      
      aye wr (4)
      
      Dilan
      
      Duane
      
      Montgomery
      
      Stewart-Cousins
      
      excused (1)
      
      Fuschillo

co-Sponsors

View additional co-sponsors

2011-S7789 (ACTIVE) - Details

Current Committee:: Assembly Corporations, Authorities And Commissions
Law Section:: Public Authorities

2011-S7789 (ACTIVE) - Summary

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

2011-S7789 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S7789

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:
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.

SUMMARY OF PROVISIONS:
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.

JUSTIFICATION:
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
circumstances.

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
companies.

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.

PRIOR LEGISLATIVE HISTORY:
New bill.

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
Immediately.

2011-S7789 (ACTIVE) - Bill Text download pdf

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

                                  7789

                            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

  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  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.

                                                           LBD16344-01-2

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
facilities.
  (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
infrastructure.
  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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Senate Bill S7789

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Sponsored By

George D. Maziarz

Archive: Last Bill Status - In Assembly Committee

co-Sponsors

Carl L. Marcellino

Kenneth P. LaValle

Jack M. Martins

Michael F. Nozzolio

2011-S7789 (ACTIVE) - Details

2011-S7789 (ACTIVE) - Summary

2011-S7789 (ACTIVE) - Sponsor Memo

2011-S7789 (ACTIVE) - Bill Text download pdf

Comments