Senate Bill S5583A

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

                                  5583

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              May 22, 2013
                               ___________

Introduced  by  Sens. RITCHIE, GRIFFO -- read twice and ordered printed,
  and when printed to be committed to the Committee on Energy and  Tele-
  communications

AN  ACT  to amend the public authorities law, in relation to authorizing
  unallocated power to be used for the specified purposes

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

  Section  1.  Section  1005 of the public authorities law is amended by
adding four undesignated paragraphs to be  the  thirteenth,  fourteenth,
fifteenth and sixteenth undesignated paragraphs to read as follows:
  THE  AUTHORITY  IS  AUTHORIZED  TO  ALLOCATE UP TO TWENTY MEGAWATTS OF
POWER FROM THE  SAINT  LAWRENCE-FDR  PROJECT  HEREAFTER  KNOWN  AS  "ST.
LAWRENCE  COUNTY  ECONOMIC DEVELOPMENT POWER" WHICH IS UNALLOCATED AS OF
THE EFFECTIVE DATE OF  THIS  PARAGRAPH,  FOR  SALE  INTO  THE  WHOLESALE
MARKET, THE NET EARNINGS FROM WHICH AND SUCH OTHER FUNDS OF THE AUTHORI-
TY  AS  DEEMED FEASIBLE AND ADVISABLE BY THE TRUSTEES, SHALL BE USED FOR
PURPOSES OF THE ST. LAWRENCE  RIVER  VALLEY  ECONOMIC  DEVELOPMENT  FUND
(HEREINAFTER  REFERRED  TO AS THE "SLRVED FUND"). SUCH PROCEEDS SHALL BE
DISBURSED UPON RECOMMENDATION OF THE ST. LAWRENCE RIVER VALLEY  REDEVEL-
OPMENT DEVELOPMENT AGENCY AND/OR THE ST. LAWRENCE INDUSTRIAL DEVELOPMENT
AGENCY  AND/OR  THEIR  SUCCESSORS (HEREINAFTER THE RVRDA ADVISORY GROUP)
PURSUANT TO THE FUND CONTEMPLATED IN  THE  AGREEMENT  TO  FUND  THE  ST.
LAWRENCE  RIVER  VALLEY  REDEVELOPMENT  DEVELOPMENT AGENCY DATED JUNE 2,
2010 BY AND BETWEEN THE  POWER  AUTHORITY  OF  THE  STATE  OF  NEW  YORK
(PASNY),  THE  ST.  LAWRENCE  COUNTY INDUSTRIAL DEVELOPMENT AGENCY LOCAL
DEVELOPMENT CORPORATION AND  THE  PASNY  HOST  COMMUNITIES  ON  THE  ST.
LAWRENCE RIVER INCLUDING THE TOWNS OF WADDINGTON, LOUISVILLE, LISBON AND
MASSENA,  THE  VILLAGES  OF WADDINGTON AND MASSENA AND THE COUNTY OF ST.
LAWRENCE. FOR PURPOSES OF THIS PARAGRAPH, THE TERM  NET  EARNINGS  SHALL
MEAN  THE DIFFERENCE BETWEEN THE POWER AUTHORITY'S COST-BASED HYDROELEC-
TRIC RATE FOR POWER AND ENERGY AND THE PREVAILING WHOLESALE MARKET PRICE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11041-01-3
              

S. 5583                             2

AT THE PROJECT IN THE MARKET ADMINISTERED BY THE  NEW  YORK  INDEPENDENT
SYSTEM OPERATOR.
  THE  RVRDA  ADVISORY  GROUP  SHALL  SOLICIT  APPLICATIONS FOR AND MAKE
RECOMMENDATIONS FOR APPROVAL OF  SLRVED  FUND  BENEFITS  MADE  AVAILABLE
PURSUANT  TO  THIS  PARAGRAPH. EACH APPLICATION FOR SLRVED FUND BENEFITS
SHALL BE EVALUATED UNDER CRITERIA ADOPTED BY THE RVRDA  ADVISORY  GROUP,
IN CONSULTATION WITH THE POWER AUTHORITY OF THE STATE OF NEW YORK, WHICH
CRITERIA SHALL BE DESIGNED TO PROMOTE ECONOMIC DEVELOPMENT, MAINTAIN AND
DEVELOP  JOBS,  AND ENCOURAGE NEW CAPITAL INVESTMENT WITHIN ST. LAWRENCE
COUNTY. SUCH CRITERIA SHALL ADDRESS BUT NEED NOT BE LIMITED TO: (A)  THE
OVERALL  ECONOMIC IMPACT OF THE APPLICANT IN TERMS OF THE NUMBER OF JOBS
TO BE CREATED OR RETAINED, AVERAGE ANNUAL  PAYROLL,  CAPITAL  INVESTMENT
AND  USE  OF  NEW  YORK  STATE SUPPLIERS; (B) THE LIKELIHOOD THAT IN THE
ABSENCE OF APPROVAL OF THE SLRVED  FUND  BENEFIT,  THE  APPLICANT  WOULD
CLOSE,  CONTRACT  OR  RELOCATE  OUTSIDE  THE  STATE OF NEW YORK; (C) THE
APPLICANT'S COMPLIANCE WITH THE COMMITMENT TO RETAIN AND/OR CREATE  JOBS
CONTAINED  IN  ITS  PRIOR POWER CONTRACT WITH THE POWER AUTHORITY OF THE
STATE OF NEW YORK; (D) THE EXTENT TO WHICH A SLRVED  FUND  BENEFIT  WILL
AFFECT  THE  OVERALL  PRODUCTIVITY OR COMPETITIVENESS OF THE APPLICANT'S
BUSINESS AND ITS EXISTING EMPLOYMENT WITHIN THE STATE; AND (E) THE OVER-
ALL IMPACT OF THE PROJECT IN TERMS OF THE ECONOMIC VIABILITY OF  IDENTI-
FIED  ULTIMATE  SITE  OR  USER INCLUDING THE PROJECT'S ABILITY TO INDUCE
ADDITIONAL COMMERCIAL ACTIVITY ON THE SITE, REVITALIZE  AN  URBAN  AREA,
AND ITS COMPLIANCE WITH REGIONAL DEVELOPMENT PLANS.
  APPLICATIONS  FOR SLRVED FUND BENEFIT SHALL BE IN THE FORM AND CONTAIN
SUCH INFORMATION, EXHIBITS AND SUPPORTING DATA  AS  THE  RVRDA  ADVISORY
GROUP  MAY PRESCRIBE. THE RVRDA ADVISORY GROUP SHALL REVIEW THE APPLICA-
TIONS RECEIVED AND SHALL DETERMINE THE APPLICATIONS WHICH BEST MEET  THE
CRITERIA  ESTABLISHED FOR THE BENEFITS PURSUANT TO THIS PARAGRAPH AND IT
SHALL RECOMMEND SUCH APPLICATIONS TO THE POWER AUTHORITY OF THE STATE OF
NEW YORK WITH SUCH TERMS AND CONDITIONS AS IT  DEEMS  APPROPRIATE.  SUCH
TERMS  AND  CONDITIONS SHALL INCLUDE REASONABLE PROVISIONS PROVIDING FOR
THE PARTIAL OR COMPLETE WITHDRAWAL OF THE SLRVED FUND  BENEFITS  IN  THE
EVENT  THAT THE RECIPIENT FAILS TO MAINTAIN MUTUALLY AGREED UPON COMMIT-
MENTS THAT MAY INCLUDE, BUT ARE NOT LIMITED TO,  INFRASTRUCTURE  PROJECT
COMPLETION.  RECOMMENDATION  FOR APPROVAL OF A SLRVED FUND BENEFIT SHALL
QUALIFY AN APPLICANT TO RECEIVE A SLRVED FUND  BENEFIT  FROM  THE  POWER
AUTHORITY  OF THE STATE OF NEW YORK PURSUANT TO THE TERMS AND CONDITIONS
OF THE RECOMMENDATION.
  THE TRANSFER OF  SLRVED  FUND  BENEFITS  SHALL  BE  PROHIBITED  UNLESS
SPECIFICALLY APPROVED BY THE RVRDA ADVISORY GROUP AS CONSISTENT WITH THE
CRITERIA  ESTABLISHED  PURSUANT  TO  THIS  PARAGRAPH. ANY TRANSFER WHICH
OCCURS WITHOUT SUCH ADVISORY GROUP'S APPROVAL SHALL BE INVALID AND  SUCH
TRANSFER  MAY  SUBJECT  THE  RECIPIENT  TO REVOCATION OF ITS BENEFIT AND
MODIFICATION OR REVOCATION OF ITS CONTRACT.
  S 2. The opening paragraph of subdivision 13 of section  1005  of  the
public  authorities  law, as amended by chapter 645 of the laws of 2006,
is amended to read as follows:
  Notwithstanding any other provision of law to the contrary but subject
to the terms and conditions  of  federal  energy  regulatory  commission
licenses,  to allocate or reallocate directly or by sale for resale, two
hundred fifty megawatts of firm Niagara project hydroelectric  power  as
"expansion  power" and four hundred forty-five megawatts of firm Niagara
project hydroelectric power as "replacement power" to businesses  within
the  state  located within thirty miles of the Niagara project, and four
hundred ninety megawatts of firm and interruptible power from the  Saint

S. 5583                             3

Lawrence-FDR  project as "preservation power" sold to businesses located
within the counties of Jefferson, Saint Lawrence and Franklin,  provided
that the amount of expansion power allocated to businesses in Chautauqua
county on January first, nineteen hundred eighty-seven shall continue to
be  allocated  in  such  county and, provided further that up to seventy
megawatts of replacement power, up to thirty-eight and six-tenths  mega-
watts of preservation power from the Saint Lawrence-FDR project which is
relinquished  or  withdrawn  after  the  effective date of chapter three
hundred thirteen of the laws of two thousand  five  which  amended  this
subdivision  and,  for  the  period ending on December thirty-first, two
thousand six, up to twenty megawatts  of  other  power  from  the  Saint
Lawrence-FDR  project  which  is  unallocated (HEREINAFTER "ST. LAWRENCE
COUNTY ECONOMIC DEVELOPMENT POWER" OR SLCEDP) as of the  effective  date
of chapter three hundred thirteen of the laws of two thousand five which
amended  this  subdivision, shall be allocated by the authority together
with such other funds of the authority as the trustees deem feasible and
advisable for energy cost  savings  benefits  pursuant  to  the  twelfth
undesignated  paragraph  of  this  section,  AND  FOR ST. LAWRENCE RIVER
VALLEY ECONOMIC DEVELOPMENT FUND  BENEFITS  PURSUANT  TO  THIS  SECTION.
Provided,  however,  that the amount of replacement, preservation power,
or the additional twenty megawatts of Saint Lawrence-FDR power  for  the
period ending December thirty-first, two thousand six made available for
such  purpose,  used  for  energy  cost savings benefits that are relin-
quished by or withdrawn from a recipient thereof shall be offered by the
authority proportionately for a period of six months for reallocation to
applicants who qualify  respectively  for  replacement  or  preservation
power  allocations as provided in this subdivision. If such power is not
allocated within such period it shall be allocated for  the  purpose  of
energy  cost  savings  benefits pursuant to [subdivision (h) of] section
one hundred eighty-three of the economic development law, EXCEPT TO  THE
EXTENT  USED  TO FUND THE ST. LAWRENCE RIVER VALLEY ECONOMIC DEVELOPMENT
FUND. The authority shall negotiate contracts on  reasonable  terms  and
conditions  to  renew  or  extend every permanent contract allocation of
expansion power in effect on the effective date of this subdivision and,
to the extent consistent with such contracts, the authority shall  nego-
tiate  contracts  on  reasonable terms and conditions to extend or renew
all other allocations or allotments of such  power  in  effect  on  such
date.    The authority shall negotiate contracts on reasonable terms and
conditions to renew or extend for a period of at least five years  every
permanent  contract  allocation  of  replacement  power in effect on the
effective date of chapter three hundred thirteen  of  the  laws  of  two
thousand  five  which  added  this sentence and that would expire by its
terms on or before the end of  the  initial  federal  energy  regulatory
commission  license for the Niagara project; provided that, in negotiat-
ing the terms and  conditions  of  such  contracts,  the  authority  may
consider  a  business'  compliance  with  all  current contractual obli-
gations, including employment and  power  usage  commitments.  Contracts
entered  into  pursuant  to  this  subdivision  shall contain reasonable
provisions providing for the partial or complete withdrawal of the power
in the event the recipient fails to maintain mutually agreed  levels  of
employment,  investment, and power utilization. Expansion or replacement
power relinquished by businesses or withdrawn by the authority shall  be
allocated  directly or by sale for resale by the authority to businesses
within the state located within thirty  miles  of  the  Niagara  project
provided,  that the PROCEEDS FROM THE SALE OF SUCH UNALLOCATED AND ALLO-
CATED, BUT RELINQUISHED OR WITHDRAWN OR CURRENTLY NOT ACCESSED EXPANSION

S. 5583                             4

OR REPLACEMENT POWER, AS SHALL BE DETERMINED BY THE TRUSTEES,  SHALL  BE
ALLOCATED FOR THE PURPOSES OF WESTERN NEW YORK ECONOMIC DEVELOPMENT FUND
BENEFITS  PURSUANT  TO  THE  ELEVENTH  UNDESIGNATED  PARAGRAPH  OF  THIS
SECTION.  PROCEEDS  TO  SUCH  WESTERN NEW YORK ECONOMIC DEVELOPMENT FUND
SHALL NOT PRECLUDE THE AUTHORITY FROM ALLOCATING EXPANSION  OR  REPLACE-
MENT  POWER  TO ELIGIBLE COMPANIES UNDER THE PROVISIONS OF THIS SECTION.
THE amount of power allocated to  businesses  in  Chautauqua  county  on
January  first, nineteen hundred eighty-seven shall be allocated in such
county. Preservation power that is relinquished by businesses  or  with-
drawn by the authority shall be allocated directly or by sale for resale
by  the  authority  within the counties of Jefferson, Saint Lawrence and
Franklin. ST. LAWRENCE COUNTY ECONOMIC DEVELOPMENT POWER SHALL  BE  USED
TO  FUND  THE  SLRVED  FUND  PURSUANT  TO THIS SECTION. Allocations made
pursuant to this paragraph shall be made  in  accordance  with  criteria
established  by the trustees.  Such criteria shall address the expansion
of industry and employment pursuant to paragraph (a) of this subdivision
and the revitalization of existing industry pursuant to paragraph (b) of
this subdivision. PRESERVATION POWER OR  ST.  LAWRENCE  COUNTY  ECONOMIC
DEVELOPMENT  POWER  RELINQUISHED OR WITHDRAWN OR CURRENTLY NOT ACCESSED,
AS SHALL BE DETERMINED BY THE  TRUSTEES,  SHALL  BE  ALLOCATED  FOR  THE
PURPOSES OF ST. LAWRENCE RIVER VALLEY ECONOMIC DEVELOPMENT FUND BENEFITS
PURSUANT  TO  THIS  SECTION.  PROCEEDS TO SUCH ST. LAWRENCE RIVER VALLEY
ECONOMIC DEVELOPMENT FUND SHALL NOT PRECLUDE THE AUTHORITY FROM ALLOCAT-
ING EXPANSION OR REPLACEMENT  POWER  TO  ELIGIBLE  COMPANIES  UNDER  THE
PROVISIONS OF THIS SECTION.
  S 3. This act shall take effect immediately.