senate Bill S2532A

2013-2014 Legislative Session

Enacts the power generation modernization act to provide assistance and incentive for electric generating facilities to meet certain environmental standards

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 09, 2014 print number 2532b
amend and recommit to energy and telecommunications
Jan 08, 2014 referred to energy and telecommunications
Feb 27, 2013 reported and committed to finance
Feb 13, 2013 print number 2532a
amend and recommit to energy and telecommunications
Jan 18, 2013 referred to energy and telecommunications

Votes

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Feb 27, 2013 - Energy and Telecommunications committee Vote

S2532A
8
0
committee
8
Aye
0
Nay
3
Aye with Reservations
0
Absent
0
Excused
0
Abstained
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Energy and Telecommunications Committee Vote: Feb 27, 2013

aye wr (3)

Bill Amendments

Original
A
B (Active)
Original
A
B (Active)

Co-Sponsors

S2532 - Bill Details

See Assembly Version of this Bill:
A5905
Current Committee:
Law Section:
State Finance Law
Laws Affected:
Add §85, St Fin L; amd §19-0301, En Con L

S2532 - Bill Texts

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Enacts the power generation modernization act to provide assistance and incentive for electric generating facilities to meet certain environmental standards; directs the power authority to release requests for proposals on certain natural gas powered generating facilities.

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BILL NUMBER:S2532

TITLE OF BILL: An act to amend the state finance law and the
environmental conservation law, in relation to the power generation
modernization act and 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 enact the power generation modernization act to provide
assistance and incentives for electric generating facilities to meet
certain environmental standards.

SUMMARY OF PROVISIONS:

Section 1 of the bill establishes the title of the act as the "Power
Generation Modernization Act".

Section 2 of the bill amends the state finance law to create the power
plant modernization and community assistance fund consisting of
revenues from various sources.

Section 3 of the bill amends the environmental conservation law to
authorize the department of environmental conservation to amend
regulations relating to a certain multi-state program in which the
state participates, and directs revenues derived from such regulations
to be deposited into the power plant modernization and community
assistance fund.

Section 4 of the bill directs the New York Power Authority (NYPA) to
issue requests for proposals for the purchase of up to ten of NYPA's
gas turbine electric generating facilities located in and around New
York City, and requires NYPA to deposit proceeds from the sale of such
facilities into the power plant modernization and community assistance
fund.

Section 5 is the effective date.

JUSTIFICATION: Many power plants in NYS are contemplating repowering
or making other investments in infrastructure in order to meet new
environmental standards and to remain competitive in the marketplace.
Some power plants are even considering the construction of new
electric generating units on the same or adjacent property in order to
remain competitive and improve their overall environmental
performance. Enhancing competition and improving environmental
compliance are worthy goals that should be encouraged and
incentivized.

Further, these power plants often represent a significant portion of
the local tax base for the municipality where they are located. Loss
of such local tax base will be devastating for these communities. To
make matters worse, these communities will also suffer from loss of
jobs if the power plant can no longer remain competitive in the
marketplace.

Many of these power plants wish to remain in their communities and
continue operations. Unfortunately, they are prevented from taking


steps to repower or otherwise improve their infrastructure and
environmental profile because of the high costs associated with doing
so. By creating a fund designed specifically for the modernization of
power plants and to assist local communities that host a struggling
power plant, this legislation enables power generators to continue
operations in a meaningful way while providing a safety net for
communities that may lose a power plant.

The fund created by this legislation will also establish individual
repowering savings accounts for power plants. This measure will allow
a power plant to "bank" the amount they are required to spend on
certain required allowances associated with power generation and then
use those funds to repower or invest in other infrastructure upgrades.

These measures will encourage power plants to undertake important
infrastructure investment projects which will result in a cleaner,
stronger and more modem generating fleet with improved emissions
profiles and long term economic viability. It will also allow power
plants to maintain job levels and pave the way for job growth while
providing relief to local communities if the circumstances require it.

PRIOR LEGISLATIVE HISTORY: New bill.

FISCAL IMPLICATIONS: To be determined.

EFFECTIVE DATE: This act shall take effect on the ninetieth day after
it shall become a law.

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

                                  2532

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 18, 2013
                               ___________

Introduced  by  Sens. MAZIARZ, LARKIN, MARCELLINO, RITCHIE -- read twice
  and ordered printed, and when printed to be committed to the Committee
  on Energy and Telecommunications

AN ACT to amend the state finance law and the environmental conservation
  law, in relation to the power generation modernization act and direct-
  ing 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.  This  act  shall  be known and may be cited as the "Power
Generation Modernization Act".
  S 2. The state finance law is amended by adding a new  section  85  to
read as follows:
  S  85.  POWER  PLANT  MODERNIZATION  AND COMMUNITY ASSISTANCE FUND. 1.
THERE IS HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE COMPTROLLER  AND
THE  DEPARTMENT  OF TAXATION AND FINANCE A POWER PLANT MODERNIZATION AND
COMMUNITY ASSISTANCE FUND, DIVIDED INTO A GENERAL  FUND  AND  INDIVIDUAL
REPOWERING  SAVINGS  ACCOUNTS  UNIQUE  AND  SPECIFIC TO INDIVIDUAL MAJOR
ELECTRIC GENERATING FACILITIES WHICH MEET SPECIFIC CRITERIA SET FORTH IN
THIS SECTION RELATING  TO  MODERNIZATION  OF  SUCH  FACILITIES  TO  MEET
SPECIFIC ENVIRONMENTAL STANDARDS.
  2.  (A)  THE  POWER  PLANT MODERNIZATION AND COMMUNITY ASSISTANCE FUND
SHALL CONSIST OF REVENUES FROM THE POTENTIAL SALE OF SPECIFIED ASSETS OF
THE NEW YORK POWER AUTHORITY PURSUANT TO SECTION FOUR OF  A  CHAPTER  OF
THE LAWS OF 2013 WHICH ADDED THIS SUBDIVISION, ANY REVENUES DERIVED FROM
REGULATIONS  ADOPTED  BY  THE  DEPARTMENT  OF ENVIRONMENTAL CONSERVATION
PURSUANT TO SUBDIVISION SIX OF  SECTION  19-0301  OF  THE  ENVIRONMENTAL
CONSERVATION  LAW,  PROCEEDS COLLECTED BUT NOT ALLOCATED BY THE NEW YORK
STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY FROM THE AUCTION, PURSU-
ANT TO REGULATIONS OF SUCH AUTHORITY, OF EMISSION  ALLOWANCES  ALLOCATED

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04684-02-3

S. 2532                             2

BY  THE  NEW YORK STATE DEPARTMENT OF ENVIRONMENTAL CONSERVATION TO SUCH
AUTHORITY PURSUANT TO REGULATIONS ADOPTED BY SUCH DEPARTMENT, ANY REVEN-
UES DERIVED FROM POTENTIAL DEVELOPMENT OF THE MARCELLUS OR  UTICA  SHALE
AREAS OVER AND ABOVE THAT WHICH IS NEEDED TO ENSURE APPROPRIATE STAFF AT
THE  DEPARTMENT  OF  ENVIRONMENTAL  CONSERVATION,  DEPARTMENT OF HEALTH,
DEPARTMENT OF PUBLIC SERVICE AND OTHER RELEVANT STATE AGENCIES, AND  ANY
OTHER  ENERGY  RELATED  REVENUE THAT THE STATE MAY ACQUIRE IN CONNECTION
WITH THE DEVELOPMENT OF SUCH AREA THAT IS NOT  ALREADY  COMMITTED  TO  A
DEDICATED PROJECT OR SOURCE. MONEYS IN THE FUND SHALL BE KEPT SEPARATELY
FROM AND SHALL NOT BE COMMINGLED WITH ANY OTHER MONEYS IN THE CUSTODY OF
THE STATE COMPTROLLER. UNDER NO CIRCUMSTANCE SHALL FUNDS IN THIS ACCOUNT
BE  SWEPT,  REPURPOSED  OR  OTHERWISE  EXPENDED  EXCEPT  FOR THE EXPRESS
PURPOSES OUTLINED HEREIN.
  (B) MONEYS IN THIS FUND SHALL BE USED AS SET FORTH IN THIS SECTION  TO
ASSIST  MAJOR  ELECTRIC GENERATING FACILITIES OPERATING WITHIN THE STATE
OF NEW YORK WITH INVESTMENTS IN QUALIFIED ENERGY INFRASTRUCTURE,  QUALI-
FIED  NEW  CONSTRUCTION OR REPOWERING PROJECTS; AND TO MITIGATE NEGATIVE
PROPERTY TAX OR PAYMENT IN LIEU OF TAXES IMPACTS ON COMMUNITIES WHO HAVE
LOST A MAJOR ELECTRIC GENERATING FACILITY.
  3. (A) A MAJOR ELECTRIC GENERATING FACILITY WHICH UNDERTAKES A  REPOW-
ERING PROJECT, QUALIFIED ENERGY INFRASTRUCTURE INVESTMENT OR A QUALIFIED
NEW  CONSTRUCTION  PROJECT  AS DEFINED IN THIS SUBDIVISION MAY APPLY FOR
ASSISTANCE FROM THE FUND PURSUANT TO SUBDIVISION FOUR OF THIS SECTION.
  (B) FOR THE PURPOSES OF THIS SECTION THE FOLLOWING  TERMS  SHALL  HAVE
THE FOLLOWING MEANINGS:
  (I)  "REPOWERING PROJECT" SHALL MEAN IMPROVEMENTS TO AN EXISTING MAJOR
ELECTRIC GENERATING FACILITY THAT WILL ALLOW THE FACILITY, OR A NEW UNIT
OR UNITS AT THE FACILITY, OR THE COMBINATION OF THE NEW  UNIT  OR  UNITS
AND  THE FACILITY TO INCREASE ITS OVERALL EFFICIENCY, AS DEMONSTRATED BY
A REDUCTION IN HEAT RATE, AND TO MEET THE  FOLLOWING  RELEVANT  ENVIRON-
MENTAL REQUIREMENTS:
  (1) A DECREASE IN THE RATE OF EMISSION EXPRESSED AS A POUNDS PER MEGA-
WATT-HOUR REDUCTION OF EACH OF THE RELEVANT SITING AIR CONTAMINANTS; AND
  (2)  COOLING  WATER WITHDRAWAL CONSISTENT WITH A RATE EQUAL TO OR LESS
THAN CLOSED-CYCLE COOLING.
  (II) "ENVIRONMENTAL REQUIREMENTS", EXCEPT AS  OTHERWISE  SPECIFIED  IN
SUBPARAGRAPH (I) OF THIS PARAGRAPH, SHALL MEAN
  (1)  AN  INCREASE IN OVERALL EFFICIENCY AS DEMONSTRATED BY A REDUCTION
OF HEAT RATE;
  (2) A DECREASE IN THE RATE OF EMISSION EXPRESSED AS A POUNDS PER MEGA-
WATT-HOUR REDUCTION OF EACH OF THE RELEVANT SITING AIR CONTAMINANTS; AND
  (3) COOLING WATER WITHDRAWAL CONSISTENT WITH A RATE EQUAL TO  OR  LESS
THAN CLOSED-CYCLE COOLING.
  (III)  QUALIFIED  ENERGY  INFRASTRUCTURE  INVESTMENT  SHALL  MEAN  ANY
INVESTMENT NEEDED TO DELIVER A NEW FUEL  SOURCE  TO  AN  EXISTING  MAJOR
ELECTRIC  GENERATING  FACILITY, REPLACE OR RETROFIT A BURNER OR TURBINE,
UTILIZE ON-SITE RENEWABLE ENERGY GENERATION  OR  ANY  OTHER  SUBSTANTIAL
INVESTMENT  THAT  WILL HAVE A DIRECT IMPACT ON THE FACILITY'S ABILITY TO
MEET THE RELEVANT ENVIRONMENTAL REQUIREMENTS.
  (IV) QUALIFIED NEW CONSTRUCTION PROJECT SHALL MEAN CONSTRUCTING A  NEW
MAJOR  ELECTRIC  GENERATING FACILITY ON THE SAME PROPERTY AS AN EXISTING
FACILITY OR ON PROPERTY DIRECTLY ADJACENT OR CONTIGUOUS TO SAID  PROPER-
TY, WHERE THE NEW FACILITY BY ITSELF OR IN COMBINATION WITH THE EXISTING
FACILITY  WILL  ALLOW THE SITE AS A WHOLE TO MEET RELEVANT ENVIRONMENTAL
REQUIREMENTS.

S. 2532                             3

  (V) MAJOR ELECTRIC GENERATING FACILITY SHALL MEAN AN ELECTRIC GENERAT-
ING FACILITY WITH A NAMEPLATE GENERATING CAPACITY OF  TWENTY-FIVE  THOU-
SAND  KILOWATTS OR MORE, INCLUDING INTERCONNECTION ELECTRIC TRANSMISSION
LINES AND FUEL GAS TRANSMISSION LINES THAT ARE  NOT  SUBJECT  TO  REVIEW
UNDER ARTICLE SEVEN OF THE PUBLIC SERVICE LAW.
  4.  THE EMPIRE STATE DEVELOPMENT CORPORATION SHALL CONDUCT COMPETITIVE
SOLICITATIONS FOR  PROPOSALS  SUBMITTED  BY  MAJOR  ELECTRIC  GENERATING
FACILITIES  UNDERTAKING ANY REPOWERING PROJECT, QUALIFIED ENERGY INFRAS-
TRUCTURE INVESTMENT PROJECT OR QUALIFIED  NEW  CONSTRUCTION  PROJECT  AS
SUCH  TERMS  ARE  DEFINED  IN THIS SECTION, FOR ASSISTANCE FROM THE FUND
ESTABLISHED PURSUANT TO THE PROVISIONS OF THIS SECTION. SUCH COMPETITIVE
SOLICITATIONS SHALL BE DESIGNED IN A MANNER AND FORM TO BE DETERMINED BY
THE EMPIRE  STATE  DEVELOPMENT  CORPORATION  IN  CONSULTATION  WITH  THE
DEPARTMENT  OF  TAXATION AND FINANCE AND THE COMPTROLLER. A SCHEDULE FOR
SUCH COMPETITIVE SOLICITATIONS, AWARD  SELECTION,  AND  DISTRIBUTION  OF
FUNDS  SHALL  BE ESTABLISHED BY THE EMPIRE STATE DEVELOPMENT CORPORATION
IN CONSULTATION WITH THE DEPARTMENT OF  TAXATION  AND  FINANCE  AND  THE
COMPTROLLER.  THE  EMPIRE  STATE  DEVELOPMENT CORPORATION SHALL RANK THE
PROPOSALS IT RECEIVED  IN  RESPONSE  TO  COMPETITIVE  SOLICITATIONS  AND
CHOOSE  THE  HIGHEST RANKED PROPOSALS MEASURED ON THE FOLLOWING CRITERIA
TO BE CONSIDERED IN THE AGGREGATE:
  (A) THE AMOUNT OF ASSISTANCE REQUESTED  IN  PROPORTION  TO  THE  TOTAL
QUANTITY   OF   MEGAWATTS  OF  NEW  GENERATION  CAPACITY  THAT  WILL  BE
CONSTRUCTED;
  (B) THE EXTENT TO WHICH AN AWARD WILL RESULT IN NEW CAPITAL INVESTMENT
IN THE STATE BY THE APPLICANT;
  (C) THE EXTENT TO WHICH AN  AWARD  IS  CONSISTENT  WITH  ANY  REGIONAL
ECONOMIC DEVELOPMENT COUNCIL STRATEGIES AND PRIORITIES;
  (D)  THE  TYPE AND COST OF FACILITIES AND EQUIPMENT TO BE CONSTRUCTED,
ENLARGED OR INSTALLED IF THE APPLICANT WERE TO RECEIVE AN AWARD;
  (E) THE APPLICANT'S PAYROLL, SALARIES, BENEFITS AND NUMBER OF JOBS  AT
THE FACILITY FOR WHICH AN AWARD IS REQUESTED;
  (F)  THE  NUMBER OF JOBS THAT WILL BE CREATED OR RETAINED, AS APPLICA-
BLE, WITHIN THE STATE IN RELATION TO THE REQUESTED AWARD AND THE  EXTENT
TO WHICH THE APPLICANT WILL AGREE TO COMMIT TO CREATING OR RETAINING, AS
APPLICABLE, SUCH JOBS AS A CONDITION TO RECEIVING AN AWARD;
  (G)  WHETHER THE APPLICANT IS AT RISK OF CLOSING OR CURTAILING FACILI-
TIES 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 AN AWARD;
  (H) THE SIGNIFICANCE OF THE APPLICANT'S FACILITY TO THE ECONOMY OF THE
AREA IN WHICH SUCH FACILITY IS LOCATED; AND
  (I)  THE  EXTENT  TO WHICH AN AWARD WILL RESULT IN AN ADVANTAGE FOR AN
APPLICANT IN RELATION TO THE APPLICANT'S COMPETITORS WITHIN THE STATE.
  ALL PAYMENTS OF MONEYS FROM THE FUND SHALL BE MADE ON  THE  AUDIT  AND
THE  WARRANT  OF  THE  COMPTROLLER  TO BE DISBURSED BY THE DEPARTMENT OF
TAXATION AND FINANCE IN CONJUNCTION  AND  CONSULTATION  WITH  THE  COMP-
TROLLER.  RECOMMENDATIONS  FOR AN AWARD UNDER THIS SECTION SHALL BE MADE
BY THE EMPIRE STATE DEVELOPMENT CORPORATION IN  ORDER  TO  MAXIMIZE  THE
ECONOMIC DEVELOPMENT IMPACTS OF EACH POSSIBLE PROJECT.
  5. (A) PROPOSALS FOR ASSISTANCE FROM THE FUND MAY BE MADE BY A COUNTY,
CITY,  TOWN,  VILLAGE  OR  SCHOOL  DISTRICT  THAT HAS 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. PROPOSALS SHALL BE FILED IN A  MANNER  AND
FORM  TO  BE  DETERMINED  BY THE EMPIRE STATE DEVELOPMENT CORPORATION IN

S. 2532                             4

CONSULTATION WITH THE DEPARTMENT OF TAXATION AND FINANCE AND  THE  COMP-
TROLLER.    FOR  THE  PURPOSES  OF THIS SUBDIVISION, SUBSTANTIAL ADVERSE
IMPACT SHALL MEAN A SITUATION WHERE THE  CLOSURE  OF  A  MAJOR  ELECTRIC
GENERATING  FACILITY  REPRESENTS  A  REDUCTION  IN  TAX COLLECTIONS TO A
MUNICIPAL CORPORATION OF AT LEAST TEN PERCENT OF TOTAL RECEIPTS  AND  IS
EXPECTED TO HAVE AN ADVERSE AND UNEXPECTED NEGATIVE IMPACT ON TAXPAYERS.
  (B)  APPLICANTS  MAY  ONLY SEEK ASSISTANCE FOR A MAXIMUM OF FIVE YEARS
AND MAY ONLY SEEK ASSISTANCE UNDER THE FOLLOWING LIMITS, WHICH SHALL  BE
CALCULATED  BASED  ON THE TOTAL AMOUNT OF TAXES COLLECTED FROM THE ELEC-
TRIC GENERATING FACILITY WHEN AVERAGING THE  PAST  FIVE  TAXABLE  YEARS,
ENDING WITH THE FINAL YEAR OF PLANT OPERATION:
  FIRST YEAR: UP TO EIGHTY PERCENT OF THE PAST FIVE YEAR AVERAGE;
  SECOND YEAR: UP TO FIFTY PERCENT OF THE PAST FIVE YEAR AVERAGE;
  THIRD YEAR: UP TO FIFTY PERCENT OF THE PAST FIVE YEAR AVERAGE;
  FOURTH YEAR: UP TO TWENTY-FIVE PERCENT OF THE PAST FIVE YEAR AVERAGE;
  FIFTH YEAR: UP TO TEN PERCENT OF THE PAST FIVE YEAR AVERAGE.
  6. THE FUND ESTABLISHED UNDER THIS SECTION SHALL ALSO INCLUDE INDIVID-
UAL  REPOWERING  SAVINGS ACCOUNTS HELD IN THE JOINT CUSTODY OF THE COMP-
TROLLER AND THE DEPARTMENT OF TAXATION AND FINANCE HELD ON BEHALF  OF  A
PARTICULAR MAJOR ELECTRIC GENERATING FACILITY AND SHALL CONSIST OF FIFTY
PERCENT  OF  THE  PROCEEDS  COLLECTED  BUT NOT ALLOCATED BY THE NEW YORK
STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY FROM THE AUCTION, PURSU-
ANT TO REGULATIONS OF SUCH AUTHORITY, OF EMISSION  ALLOWANCES  ALLOCATED
BY THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION TO SUCH AUTHORITY PURSU-
ANT  TO REGULATIONS ADOPTED BY SUCH DEPARTMENT.  FUNDS SHALL BE CREDITED
TO THE NAME AND ACCOUNT OF THE SPECIFIC GENERATOR AND EXPENDITURES  FROM
THE  FUND MAY ONLY BE MADE ON BEHALF OF SAID GENERATOR. A MAJOR ELECTRIC
GENERATOR WHICH ESTABLISHES AN  INDIVIDUAL  REPOWERING  SAVINGS  ACCOUNT
UNDER THIS SUBDIVISION MAY USE SUCH FUNDS FOR THE PURPOSES OF A REPOWER-
ING  PROJECT,  QUALIFIED ENERGY INFRASTRUCTURE INVESTMENT OR A QUALIFIED
NEW CONSTRUCTION  PROJECT  AS  DEFINED  IN  SUBDIVISION  THREE  OF  THIS
SECTION.  SUCH  FUNDS  MAY  BE  ACCESSED  FROM  AN INDIVIDUAL REPOWERING
SAVINGS ACCOUNT AFTER ANY  APPLICABLE  APPROPRIATE  APPROVALS  FROM  THE
DEPARTMENT  OF  ENVIRONMENTAL  CONSERVATION,  THE  DEPARTMENT  OF PUBLIC
SERVICE AND ANY OTHER STATE ENTITY WHOSE APPROVAL IS  REQUIRED  PURSUANT
TO  THE  SCOPE  OF THE PROJECT PROPOSED. NO DISBURSEMENT FROM AN ACCOUNT
MAY EXCEED THE COST OR VALUE OF THE WORK  PROPOSED,  AND  ONLY  EXPENSES
CONSIDERED  DIRECTLY  RELATED  TO  THE  BENEFITS  OF THE PROJECT WILL BE
ALLOWABLE.  DISBURSEMENTS FROM ACCOUNTS SHALL ONLY BE REIMBURSEMENT  FOR
ACTUAL EXPENSES PAID BY THE GENERATOR AND SHALL NOT BE ADVANCES OR OTHER
PAYMENTS.  FUNDS HELD IN ANY GIVEN INDIVIDUAL REPOWERING SAVINGS ACCOUNT
SHALL BE AVAILABLE FOR USE FOR A PERIOD OF TEN  YEARS  TOWARD  ALLOWABLE
EXPENSES  AND CAN BE RENEWED FOR AN ADDITIONAL TEN YEARS, IF THE GENERA-
TOR APPLIES FOR AN EXTENSION OF  THEIR  ACCOUNT  AND  AFTER  A  THOROUGH
REVIEW BY THE PUBLIC SERVICE COMMISSION.
  7. ALL PAYMENTS OF MONEYS FROM THE FUND SHALL BE MADE ON THE AUDIT AND
THE  WARRANT  OF  THE  COMPTROLLER  TO BE DISBURSED BY THE DEPARTMENT OF
TAXATION AND FINANCE IN CONJUNCTION  AND  CONSULTATION  WITH  THE  COMP-
TROLLER.
  S  3. Section 19-0301 of the environmental conservation law is amended
by adding a new subdivision 6 to read as follows:
  6. IN ADDITION TO EXISTING REGULATORY AUTHORITY, THE DEPARTMENT MAY:
  A. IN COOPERATION WITH THE DEPARTMENT OF PUBLIC SERVICE  AND  THE  NEW
YORK  STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY, AMEND PART 242 OF
TITLE 6 OF THE NEW YORK CODES, RULES AND REGULATIONS  TO,  IN  A  MANNER
THAT IS CONSISTENT WITH FEDERAL LAW, COVER ELECTRICITY IMPORTED INTO THE

S. 2532                             5

STATE THAT IS NOT ALREADY SUBJECT TO THE COMPARABLE REGULATIONS OF OTHER
STATES,  BY THE IMPOSITION OF FEES ON THE CARBON INTENSITY OF SUCH ELEC-
TRICITY IMPORTED INTO THE STATE DEEMED NECESSARY TO MAINTAIN  THE  ENVI-
RONMENTAL  INTEGRITY  OF  THE  MULTI-STATE  PROGRAM  IN  WHICH THE STATE
PARTICIPATES; AND
  B. ASSESS FEES EQUIVALENT TO THE AMOUNT OF PROCEEDS ARISING  FROM  THE
AUCTION,  PURSUANT  TO REGULATIONS OF THE NEW YORK STATE ENERGY RESEARCH
AND DEVELOPMENT AUTHORITY,  OF  EMISSION  ALLOWANCES  ALLOCATED  BY  THE
DEPARTMENT  OF  ENVIRONMENTAL CONSERVATION TO SUCH AUTHORITY PURSUANT TO
REGULATIONS ADOPTED BY SUCH DEPARTMENT.
  REVENUES DERIVED PURSUANT TO THE PROVISIONS OF THIS SUBDIVISION  SHALL
BE  DIRECTED  TO  AND  DEPOSITED INTO THE "POWER PLANT MODERNIZATION AND
COMMUNITY ASSISTANCE FUND" ESTABLISHED UNDER SECTION EIGHTY-FIVE OF  THE
STATE FINANCE LAW.
  S  4.    (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
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 the "power plant  modernization  and
community  assistance fund" established under section eighty-five of the
state finance law.
  S 5. This act shall take effect on the ninetieth day  after  it  shall
have become a law.

Co-Sponsors

S2532A - Bill Details

See Assembly Version of this Bill:
A5905
Current Committee:
Law Section:
State Finance Law
Laws Affected:
Add §85, St Fin L; amd §19-0301, En Con L

S2532A - Bill Texts

view summary

Enacts the power generation modernization act to provide assistance and incentive for electric generating facilities to meet certain environmental standards; directs the power authority to release requests for proposals on certain natural gas powered generating facilities.

view sponsor memo
BILL NUMBER:S2532A

TITLE OF BILL: An act to amend the state finance law and the environ-
mental conservation law, in relation to the power generation moderniza-
tion act and 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 enact the power generation modernization act to provide
assistance and incentives for electric generating facilities to meet
certain environmental standards.

SUMMARY OF PROVISIONS:

Section 1 of the bill establishes the title of the act as the "Power
Generation Modernization Act".

Section 2 of the bill amends the state finance law to create the power
plant modernization and community assistance fund consisting of revenues
from various sources.

Section 3 of the bill amends the environmental conservation law to
authorize the department of environmental conservation to amend regu-
lations relating to a certain multi-state program in which the state
participates, and directs revenues derived from such regulations to be
deposited into the power plant modernization and community assistance
fund.

Section 4 of the bill directs the New York Power Authority (NYPA) to
issue requests for proposals for the purchase of up to ten of NYPA's gas
turbine electric generating facilities located in and around New York
City, and requires NYPA to deposit proceeds from the sale of such facil-
ities into the power plant modernization and community assistance fund.

Section 5 is the effective date.

JUSTIFICATION: Many power plants in NYS are contemplating repowering or
making other investments in infrastructure in order to meet new environ-
mental standards and to remain competitive in the marketplace. Some
power plants are even considering the construction of new electric
generating units on the same or adjacent property in order to remain
competitive and improve their overall environmental performance. Enhanc-
ing competition and improving environmental compliance are worthy goals
that should be encouraged and incentivized.

Further, these power plants often represent a significant portion of the
local tax base for the municipality where they are located. Loss of such
local tax base will be devastating for these communities. To make
matters worse, these communities will also suffer from loss of jobs if
the power plant can no longer remain competitive in the marketplace.

Many of these power plants wish to remain in their communities and
continue operations. Unfortunately, they are prevented from taking steps
to repower or otherwise improve their infrastructure and environmental
Profile because of the high costs associated with doing so. By creating
a fund designed specifically for the modernization of power plants and
to assist local communities that host a struggling power plant, this
legislation enables power generators to continue operations in a mean-
ingful way while providing a safety net for communities that may lose a
power plant.

The fund created by this legislation will also establish individual
repowering savings accounts for power plants. This measure will allow a
power plant to "bank" the amount they are required to spend on certain
required allowances associated with power generation and then use those
funds to repower or invest in other infrastructure upgrades.

These measures will encourage power plants to undertake important
infrastructure investment projects which will result in a cleaner,
stronger and more modem generating fleet with improved emissions
profiles and long term economic viability. It will also allow power
Plants to maintain job levels and pave the way for job growth while
providing relief to local communities if the circumstances require it.

PRIOR LEGISLATIVE HISTORY: New bill.

FISCAL IMPLICATIONS: To be determined.

EFFECTIVE DATE: This act shall take effect on the ninetieth day after it
shall become a law.

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

                                 2532--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 18, 2013
                               ___________

Introduced  by  Sens. MAZIARZ, LARKIN, MARCELLINO, RITCHIE -- read twice
  and ordered printed, and when printed to be committed to the Committee
  on  Energy  and  Telecommunications  --  committee  discharged,   bill
  amended,  ordered reprinted as amended and recommitted to said commit-
  tee

AN ACT to amend the state finance law and the environmental conservation
  law, in relation to the power generation modernization act and direct-
  ing 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.  This  act  shall  be known and may be cited as the "Power
Generation Modernization Act".
  S 2. The state finance law is amended by adding a new  section  85  to
read as follows:
  S  85.  POWER  PLANT  MODERNIZATION  AND COMMUNITY ASSISTANCE FUND. 1.
THERE IS HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE COMPTROLLER  AND
THE  DEPARTMENT  OF TAXATION AND FINANCE A POWER PLANT MODERNIZATION AND
COMMUNITY ASSISTANCE FUND, DIVIDED INTO A GENERAL  FUND  AND  INDIVIDUAL
REPOWERING  SAVINGS  ACCOUNTS  UNIQUE  AND  SPECIFIC TO INDIVIDUAL MAJOR
ELECTRIC GENERATING FACILITIES WHICH MEET SPECIFIC CRITERIA SET FORTH IN
THIS SECTION RELATING  TO  MODERNIZATION  OF  SUCH  FACILITIES  TO  MEET
SPECIFIC ENVIRONMENTAL STANDARDS.
  2.  (A)  THE  POWER  PLANT MODERNIZATION AND COMMUNITY ASSISTANCE FUND
SHALL CONSIST OF REVENUES FROM THE POTENTIAL SALE OF SPECIFIED ASSETS OF
THE NEW YORK POWER AUTHORITY PURSUANT TO SECTION FOUR OF THE CHAPTER  OF
THE LAWS OF TWO THOUSAND THIRTEEN WHICH ADDED THIS SECTION, ANY REVENUES
DERIVED  FROM  REGULATIONS  ADOPTED  BY  THE DEPARTMENT OF ENVIRONMENTAL
CONSERVATION PURSUANT TO SUBDIVISION SIX OF SECTION 19-0301 OF THE ENVI-
RONMENTAL CONSERVATION LAW, PROCEEDS COLLECTED BUT NOT ALLOCATED BY  THE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04684-03-3

S. 2532--A                          2

NEW  YORK  STATE  ENERGY  RESEARCH  AND  DEVELOPMENT  AUTHORITY FROM THE
AUCTION, PURSUANT TO REGULATIONS OF SUCH AUTHORITY, OF  EMISSION  ALLOW-
ANCES  ALLOCATED BY THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION TO SUCH
AUTHORITY PURSUANT TO REGULATIONS ADOPTED BY SUCH DEPARTMENT, ANY REVEN-
UES  DERIVED  FROM POTENTIAL DEVELOPMENT OF THE MARCELLUS OR UTICA SHALE
AREAS OVER AND ABOVE THAT WHICH IS NEEDED TO ENSURE APPROPRIATE STAFF AT
THE DEPARTMENT OF  ENVIRONMENTAL  CONSERVATION,  DEPARTMENT  OF  HEALTH,
DEPARTMENT  OF PUBLIC SERVICE AND OTHER RELEVANT STATE AGENCIES, AND ANY
OTHER ENERGY RELATED REVENUE THAT THE STATE MAY  ACQUIRE  IN  CONNECTION
WITH  THE  DEVELOPMENT  OF  SUCH AREA THAT IS NOT ALREADY COMMITTED TO A
DEDICATED PROJECT OR SOURCE. MONEYS IN THE FUND SHALL BE KEPT SEPARATELY
FROM AND SHALL NOT BE COMMINGLED WITH ANY OTHER MONEYS IN THE CUSTODY OF
THE STATE COMPTROLLER. UNDER NO CIRCUMSTANCE SHALL FUNDS IN THIS ACCOUNT
BE SWEPT, REPURPOSED  OR  OTHERWISE  EXPENDED  EXCEPT  FOR  THE  EXPRESS
PURPOSES OUTLINED HEREIN.
  (B)  MONEYS IN THIS FUND SHALL BE USED AS SET FORTH IN THIS SECTION TO
ASSIST MAJOR ELECTRIC GENERATING FACILITIES OPERATING WITHIN  THE  STATE
OF  NEW YORK WITH INVESTMENTS IN QUALIFIED ENERGY INFRASTRUCTURE, QUALI-
FIED NEW CONSTRUCTION OR REPOWERING PROJECTS; AND TO  MITIGATE  NEGATIVE
PROPERTY TAX OR PAYMENT IN LIEU OF TAXES IMPACTS ON COMMUNITIES WHO HAVE
LOST A MAJOR ELECTRIC GENERATING FACILITY.
  3.  (A) A MAJOR ELECTRIC GENERATING FACILITY WHICH UNDERTAKES A REPOW-
ERING PROJECT, QUALIFIED ENERGY INFRASTRUCTURE INVESTMENT OR A QUALIFIED
NEW CONSTRUCTION PROJECT AS DEFINED IN THIS SUBDIVISION  MAY  APPLY  FOR
ASSISTANCE FROM THE FUND PURSUANT TO SUBDIVISION FOUR OF THIS SECTION.
  (B)  FOR  THE  PURPOSES OF THIS SECTION THE FOLLOWING TERMS SHALL HAVE
THE FOLLOWING MEANINGS:
  (I) "REPOWERING PROJECT" SHALL MEAN IMPROVEMENTS TO AN EXISTING  MAJOR
ELECTRIC GENERATING FACILITY THAT WILL ALLOW THE FACILITY, OR A NEW UNIT
OR  UNITS  AT  THE FACILITY, OR THE COMBINATION OF THE NEW UNIT OR UNITS
AND  THE  FACILITY  TO  MEET  THE  RELEVANT  ENVIRONMENTAL  REQUIREMENTS
CONTAINED  IN  SUBPARAGRAPHS (I), (II), (III), AND (IV) OF PARAGRAPH (B)
OF SUBDIVISION FOUR OF SECTION ONE  HUNDRED  SIXTY-FIVE  OF  THE  PUBLIC
SERVICE LAW.
  (II)  "QUALIFIED  ENERGY  INFRASTRUCTURE  INVESTMENT"  SHALL  MEAN ANY
INVESTMENT NEEDED TO DELIVER A NEW FUEL  SOURCE  TO  AN  EXISTING  MAJOR
ELECTRIC  GENERATING  FACILITY, REPLACE OR RETROFIT A BURNER OR TURBINE,
UTILIZE ON-SITE RENEWABLE ENERGY GENERATION  OR  ANY  OTHER  SUBSTANTIAL
INVESTMENT  THAT  WILL HAVE A DIRECT IMPACT ON THE FACILITY'S ABILITY TO
MEET THE ENVIRONMENTAL  REQUIREMENTS  CONTAINED  IN  SUBPARAGRAPHS  (I),
(II),  (III),  AND  (IV) OF PARAGRAPH (B) OF SUBDIVISION FOUR OF SECTION
ONE HUNDRED SIXTY-FIVE OF THE PUBLIC SERVICE LAW.
  (III) "QUALIFIED NEW CONSTRUCTION PROJECT" SHALL MEAN  CONSTRUCTING  A
NEW MAJOR ELECTRIC GENERATING FACILITY ON THE SAME PROPERTY AS AN EXIST-
ING  FACILITY  OR  ON  PROPERTY  DIRECTLY ADJACENT OR CONTIGUOUS TO SAID
PROPERTY, WHERE THE NEW FACILITY BY ITSELF OR IN  COMBINATION  WITH  THE
EXISTING  FACILITY  WILL  ALLOW THE SITE AS A WHOLE TO MEET THE ENVIRON-
MENTAL REQUIREMENTS CONTAINED IN SUBPARAGRAPHS  (I),  (II),  (III),  AND
(IV)  OF PARAGRAPH (B) OF SUBDIVISION FOUR OF SECTION ONE HUNDRED SIXTY-
FIVE OF THE PUBLIC SERVICE LAW.
  (IV) "MAJOR ELECTRIC  GENERATING  FACILITY"  SHALL  MEAN  AN  ELECTRIC
GENERATING  FACILITY WITH A NAMEPLATE GENERATING CAPACITY OF TWENTY-FIVE
THOUSAND KILOWATTS OR MORE, INCLUDING  INTERCONNECTION  ELECTRIC  TRANS-
MISSION  LINES  AND  FUEL GAS TRANSMISSION LINES THAT ARE NOT SUBJECT TO
REVIEW UNDER ARTICLE SEVEN OF THE PUBLIC SERVICE LAW.

S. 2532--A                          3

  4. THE EMPIRE STATE DEVELOPMENT CORPORATION SHALL CONDUCT  COMPETITIVE
SOLICITATIONS  FOR  PROPOSALS  SUBMITTED  BY  MAJOR  ELECTRIC GENERATING
FACILITIES UNDERTAKING ANY REPOWERING PROJECT, QUALIFIED ENERGY  INFRAS-
TRUCTURE  INVESTMENT  PROJECT  OR  QUALIFIED NEW CONSTRUCTION PROJECT AS
SUCH  TERMS  ARE  DEFINED  IN THIS SECTION, FOR ASSISTANCE FROM THE FUND
ESTABLISHED PURSUANT TO THE PROVISIONS OF THIS SECTION. SUCH COMPETITIVE
SOLICITATIONS SHALL BE DESIGNED IN A MANNER AND FORM TO BE DETERMINED BY
THE EMPIRE  STATE  DEVELOPMENT  CORPORATION  IN  CONSULTATION  WITH  THE
DEPARTMENT  OF  TAXATION AND FINANCE AND THE COMPTROLLER. A SCHEDULE FOR
SUCH COMPETITIVE SOLICITATIONS, AWARD  SELECTION,  AND  DISTRIBUTION  OF
FUNDS  SHALL  BE ESTABLISHED BY THE EMPIRE STATE DEVELOPMENT CORPORATION
IN CONSULTATION WITH THE DEPARTMENT OF  TAXATION  AND  FINANCE  AND  THE
COMPTROLLER.  THE  EMPIRE  STATE  DEVELOPMENT CORPORATION SHALL RANK THE
PROPOSALS IT RECEIVED  IN  RESPONSE  TO  COMPETITIVE  SOLICITATIONS  AND
CHOOSE  THE  HIGHEST RANKED PROPOSALS MEASURED ON THE FOLLOWING CRITERIA
TO BE CONSIDERED IN THE AGGREGATE:
  (A) THE AMOUNT OF ASSISTANCE REQUESTED  IN  PROPORTION  TO  THE  TOTAL
QUANTITY   OF   MEGAWATTS  OF  NEW  GENERATION  CAPACITY  THAT  WILL  BE
CONSTRUCTED;
  (B) THE EXTENT TO WHICH AN AWARD WILL RESULT IN NEW CAPITAL INVESTMENT
IN THE STATE BY THE APPLICANT;
  (C) THE TYPE AND COST OF FACILITIES AND EQUIPMENT TO  BE  CONSTRUCTED,
ENLARGED OR INSTALLED IF THE APPLICANT WERE TO RECEIVE AN AWARD;
  (D)  THE APPLICANT'S PAYROLL, SALARIES, BENEFITS AND NUMBER OF JOBS AT
THE FACILITY FOR WHICH AN AWARD IS REQUESTED;
  (E) THE NUMBER OF JOBS THAT WILL BE CREATED OR RETAINED,  AS  APPLICA-
BLE,  WITHIN THE STATE IN RELATION TO THE REQUESTED AWARD AND THE EXTENT
TO WHICH THE APPLICANT WILL AGREE TO COMMIT TO CREATING OR RETAINING, AS
APPLICABLE, SUCH JOBS AS A CONDITION TO RECEIVING AN AWARD;
  (F) WHETHER THE APPLICANT IS AT RISK OF CLOSING OR CURTAILING  FACILI-
TIES 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 AN AWARD;
  (G) THE SIGNIFICANCE OF THE APPLICANT'S FACILITY TO THE ECONOMY OF THE
AREA IN WHICH SUCH FACILITY IS LOCATED; AND
  (H) THE EXTENT TO WHICH AN AWARD WILL RESULT IN AN  ADVANTAGE  FOR  AN
APPLICANT IN RELATION TO THE APPLICANT'S COMPETITORS WITHIN THE STATE.
  ALL  PAYMENTS  OF  MONEYS FROM THE FUND SHALL BE MADE ON THE AUDIT AND
THE WARRANT OF THE COMPTROLLER TO BE  DISBURSED  BY  THE  DEPARTMENT  OF
TAXATION  AND  FINANCE  IN  CONJUNCTION  AND CONSULTATION WITH THE COMP-
TROLLER. RECOMMENDATIONS FOR AN AWARD UNDER THIS SECTION SHALL  BE  MADE
BY  THE  EMPIRE  STATE  DEVELOPMENT CORPORATION IN ORDER TO MAXIMIZE THE
ECONOMIC DEVELOPMENT IMPACTS OF EACH POSSIBLE PROJECT.
  5. (A) PROPOSALS FOR ASSISTANCE FROM THE FUND MAY BE MADE BY A COUNTY,
CITY, TOWN, VILLAGE OR  SCHOOL  DISTRICT  THAT  HAS  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. PROPOSALS SHALL BE FILED IN A MANNER AND
FORM TO BE DETERMINED BY THE EMPIRE  STATE  DEVELOPMENT  CORPORATION  IN
CONSULTATION  WITH  THE DEPARTMENT OF TAXATION AND FINANCE AND THE COMP-
TROLLER.   FOR THE PURPOSES OF  THIS  SUBDIVISION,  SUBSTANTIAL  ADVERSE
IMPACT  SHALL  MEAN  A  SITUATION  WHERE THE CLOSURE OF A MAJOR ELECTRIC
GENERATING FACILITY REPRESENTS A  REDUCTION  IN  TAX  COLLECTIONS  TO  A
MUNICIPAL  CORPORATION  OF AT LEAST TEN PERCENT OF TOTAL RECEIPTS AND IS
EXPECTED TO HAVE AN ADVERSE AND UNEXPECTED NEGATIVE IMPACT ON TAXPAYERS.

S. 2532--A                          4

  (B) APPLICANTS MAY ONLY SEEK ASSISTANCE FOR A MAXIMUM  OF  FIVE  YEARS
AND  MAY ONLY SEEK ASSISTANCE UNDER THE FOLLOWING LIMITS, WHICH SHALL BE
CALCULATED BASED ON THE TOTAL AMOUNT OF TAXES COLLECTED FROM  THE  ELEC-
TRIC  GENERATING  FACILITY  WHEN  AVERAGING THE PAST FIVE TAXABLE YEARS,
ENDING WITH THE FINAL YEAR OF PLANT OPERATION:
  FIRST YEAR: UP TO EIGHTY PERCENT OF THE PAST FIVE YEAR AVERAGE;
  SECOND YEAR: UP TO FIFTY PERCENT OF THE PAST FIVE YEAR AVERAGE;
  THIRD YEAR: UP TO FIFTY PERCENT OF THE PAST FIVE YEAR AVERAGE;
  FOURTH YEAR: UP TO TWENTY-FIVE PERCENT OF THE PAST FIVE YEAR AVERAGE;
  FIFTH YEAR: UP TO TEN PERCENT OF THE PAST FIVE YEAR AVERAGE.
  6. THE FUND ESTABLISHED UNDER THIS SECTION SHALL ALSO INCLUDE INDIVID-
UAL  REPOWERING  SAVINGS ACCOUNTS HELD IN THE JOINT CUSTODY OF THE COMP-
TROLLER AND THE DEPARTMENT OF TAXATION AND FINANCE HELD ON BEHALF  OF  A
PARTICULAR MAJOR ELECTRIC GENERATING FACILITY AND SHALL CONSIST OF FIFTY
PERCENT  OF  THE  PROCEEDS  COLLECTED  BUT NOT ALLOCATED BY THE NEW YORK
STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY FROM THE AUCTION, PURSU-
ANT TO REGULATIONS OF SUCH AUTHORITY, OF EMISSION  ALLOWANCES  ALLOCATED
BY THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION TO SUCH AUTHORITY PURSU-
ANT  TO REGULATIONS ADOPTED BY SUCH DEPARTMENT.  FUNDS SHALL BE CREDITED
TO THE NAME AND ACCOUNT OF THE SPECIFIC GENERATOR AND EXPENDITURES  FROM
THE  FUND MAY ONLY BE MADE ON BEHALF OF SAID GENERATOR. A MAJOR ELECTRIC
GENERATOR WHICH ESTABLISHES AN  INDIVIDUAL  REPOWERING  SAVINGS  ACCOUNT
UNDER THIS SUBDIVISION MAY USE SUCH FUNDS FOR THE PURPOSES OF A REPOWER-
ING  PROJECT,  QUALIFIED ENERGY INFRASTRUCTURE INVESTMENT OR A QUALIFIED
NEW CONSTRUCTION  PROJECT  AS  DEFINED  IN  SUBDIVISION  THREE  OF  THIS
SECTION.  SUCH  FUNDS  MAY  BE  ACCESSED  FROM  AN INDIVIDUAL REPOWERING
SAVINGS ACCOUNT AFTER ANY  APPLICABLE  APPROPRIATE  APPROVALS  FROM  THE
DEPARTMENT  OF  ENVIRONMENTAL  CONSERVATION,  THE  DEPARTMENT  OF PUBLIC
SERVICE AND ANY OTHER STATE ENTITY WHOSE APPROVAL IS  REQUIRED  PURSUANT
TO  THE  SCOPE  OF THE PROJECT PROPOSED. NO DISBURSEMENT FROM AN ACCOUNT
MAY EXCEED THE COST OR VALUE OF THE WORK  PROPOSED,  AND  ONLY  EXPENSES
CONSIDERED  DIRECTLY  RELATED  TO  THE  BENEFITS  OF THE PROJECT WILL BE
ALLOWABLE.  DISBURSEMENTS FROM ACCOUNTS SHALL ONLY BE REIMBURSEMENT  FOR
ACTUAL EXPENSES PAID BY THE GENERATOR AND SHALL NOT BE ADVANCES OR OTHER
PAYMENTS.  FUNDS HELD IN ANY GIVEN INDIVIDUAL REPOWERING SAVINGS ACCOUNT
SHALL BE AVAILABLE FOR USE FOR A PERIOD OF TEN  YEARS  TOWARD  ALLOWABLE
EXPENSES  AND CAN BE RENEWED FOR AN ADDITIONAL TEN YEARS, IF THE GENERA-
TOR APPLIES FOR AN EXTENSION OF  THEIR  ACCOUNT  AND  AFTER  A  THOROUGH
REVIEW BY THE PUBLIC SERVICE COMMISSION.
  7. ALL PAYMENTS OF MONEYS FROM THE FUND SHALL BE MADE ON THE AUDIT AND
THE  WARRANT  OF  THE  COMPTROLLER  TO BE DISBURSED BY THE DEPARTMENT OF
TAXATION AND FINANCE IN CONJUNCTION  AND  CONSULTATION  WITH  THE  COMP-
TROLLER.
  S  3. Section 19-0301 of the environmental conservation law is amended
by adding a new subdivision 6 to read as follows:
  6. IN ADDITION TO EXISTING REGULATORY AUTHORITY, THE DEPARTMENT MAY:
  A. IN COOPERATION WITH THE DEPARTMENT OF PUBLIC SERVICE  AND  THE  NEW
YORK  STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY, AMEND PART 242 OF
TITLE 6 OF THE NEW YORK CODES, RULES AND REGULATIONS  TO,  IN  A  MANNER
THAT IS CONSISTENT WITH FEDERAL LAW, COVER ELECTRICITY IMPORTED INTO THE
STATE THAT IS NOT ALREADY SUBJECT TO THE COMPARABLE REGULATIONS OF OTHER
STATES,  BY THE IMPOSITION OF FEES ON THE CARBON INTENSITY OF SUCH ELEC-
TRICITY IMPORTED INTO THE STATE DEEMED NECESSARY TO MAINTAIN  THE  ENVI-
RONMENTAL  INTEGRITY  OF  THE  MULTI-STATE  PROGRAM  IN  WHICH THE STATE
PARTICIPATES; AND

S. 2532--A                          5

  B. ASSESS FEES EQUIVALENT TO THE AMOUNT OF PROCEEDS ARISING  FROM  THE
AUCTION,  PURSUANT  TO REGULATIONS OF THE NEW YORK STATE ENERGY RESEARCH
AND DEVELOPMENT AUTHORITY,  OF  EMISSION  ALLOWANCES  ALLOCATED  BY  THE
DEPARTMENT  OF  ENVIRONMENTAL CONSERVATION TO SUCH AUTHORITY PURSUANT TO
REGULATIONS ADOPTED BY SUCH DEPARTMENT.
  REVENUES  DERIVED PURSUANT TO THE PROVISIONS OF THIS SUBDIVISION SHALL
BE DIRECTED TO AND DEPOSITED INTO THE  "POWER  PLANT  MODERNIZATION  AND
COMMUNITY  ASSISTANCE FUND" ESTABLISHED UNDER SECTION EIGHTY-FIVE OF THE
STATE FINANCE LAW.
  S 4.  (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
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 the "power plant modernization and
community assistance fund" established under section  85  of  the  state
finance law.
  S  5.  This  act shall take effect on the ninetieth day after it shall
have become a law.

Co-Sponsors

S2532B (ACTIVE) - Bill Details

See Assembly Version of this Bill:
A5905
Current Committee:
Law Section:
State Finance Law
Laws Affected:
Add §85, St Fin L; amd §19-0301, En Con L

S2532B (ACTIVE) - Bill Texts

view summary

Enacts the power generation modernization act to provide assistance and incentive for electric generating facilities to meet certain environmental standards; directs the power authority to release requests for proposals on certain natural gas powered generating facilities.

view sponsor memo
BILL NUMBER:S2532B

TITLE OF BILL: An act to amend the state finance law and the
environmental conservation law, in relation to the power generation
modernization act and 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 enact the power generation modernization act to provide
assistance and incentives for electric generating facilities to meet
certain environmental standards.

SUMMARY OF PROVISIONS:

Section 1 of the bill establishes the title of the act as the "Power
Generation Modernization Act".

Section 2 of the bill amends the state finance law to create the power
plant modernization and community assistance fund consisting of
revenues from various sources.

Section 3 of the bill amends the environmental conservation law to
authorize the department of environmental conservation to amend
regulations relating to a certain multi-state program in which the
state participates, and directs revenues derived from such regulations
to be deposited into the cower plant modernization and community
assistance fund.

Section 4 of the bill directs the New York Power Authority (NYPA) to
issue requests for proposals for the purchase of up to ten of NYPA's
gas turbine electric generating facilities located in and around New
York City, and requires NYPA to deposit proceeds from the sale of such
facilities into the power plant modernization and community assistance
fund.

Section 5 is the effective date.

JUSTIFICATION: Many power plants in NYS are contemplating repowering
or making other investments in infrastructure in order to meet new
environmental standards and to remain competitive in the marketplace.
Some power plants are even considering the construction of new
electric generating units on the same or adjacent property in order to
remain competitive and improve their overall environmental
performance. Enhancing competition and improving environmental
compliance are worthy goals that should be encouraged and
incentivized.

Further, these power plants often represent a significant portion of
the local tax base for the municipality where they are located. Loss
of such local tax base will be devastating for these communities. To
make matters worse, these communities will also suffer from loss of
jobs if the power plant can no longer remain competitive in the
marketplace.

Many of these power plants wish to remain in their communities and
continue operations. Unfortunately, they are prevented from taking
steps to repower or otherwise improve their infrastructure and


environmental Profile because of the high costs associated with doing
so. By creating a fund designed specifically for the modernization of
power plants and to assist local communities that host a struggling
power plant, this legislation enables power generators to continue
operations in a meaningful way while providing a safety net for
communities that may lose a power plant.

The fund created by this legislation will also establish individual
repowering savings accounts for cower plants. This measure will allow
a power plant to "bank" the amount they are required to spend on
certain required allowances associated with power generation and then
use those funds to repower or invest in other infrastructure upgrades.

These measures will encourage power plants to undertake important
infrastructure investment projects which will result in a cleaner,
stronger and more modem generating fleet with improved emissions
profiles and long term economic viability. It will also allow power
Plants to maintain job levels and pave the way for job growth while
providing relief to local communities if the circumstances require it.

PRIOR LEGISLATIVE HISTORY: New bill.

FISCAL IMPLICATIONS: To be determined.

EFFECTIVE DATE: This act shall take effect on the ninetieth day after
it shall become a law.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 2532--B

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 18, 2013
                               ___________

Introduced  by  Sens. MAZIARZ, LARKIN, MARCELLINO, RITCHIE -- read twice
  and ordered printed, and when printed to be committed to the Committee
  on  Energy  and  Telecommunications  --  committee  discharged,   bill
  amended,  ordered reprinted as amended and recommitted to said commit-
  tee -- recommitted to the Committee on Energy  and  Telecommunications
  in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill
  amended,  ordered reprinted as amended and recommitted to said commit-
  tee

AN ACT to amend the state finance law and the environmental conservation
  law, in relation to the power generation modernization act and direct-
  ing 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.  This  act  shall  be known and may be cited as the "Power
Generation Modernization Act".
  S 2. The state finance law is amended by adding a new  section  85  to
read as follows:
  S  85.  POWER  PLANT  MODERNIZATION  AND COMMUNITY ASSISTANCE FUND. 1.
THERE IS HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE COMPTROLLER  AND
THE  DEPARTMENT  OF TAXATION AND FINANCE A POWER PLANT MODERNIZATION AND
COMMUNITY ASSISTANCE FUND, DIVIDED INTO A GENERAL  FUND  AND  INDIVIDUAL
REPOWERING  SAVINGS  ACCOUNTS  UNIQUE  AND  SPECIFIC TO INDIVIDUAL MAJOR
ELECTRIC GENERATING FACILITIES WHICH MEET THE CRITERIA SET FORTH IN THIS
SECTION RELATING TO MODERNIZATION OF SUCH  FACILITIES  TO  MEET  CERTAIN
ENVIRONMENTAL STANDARDS.
  2.  (A)  THE  POWER  PLANT MODERNIZATION AND COMMUNITY ASSISTANCE FUND
SHALL CONSIST OF REVENUES FROM THE POTENTIAL SALE OF SPECIFIED ASSETS OF
THE NEW YORK POWER AUTHORITY PURSUANT TO SECTION FOUR OF THE CHAPTER  OF
THE LAWS OF TWO THOUSAND FOURTEEN WHICH ADDED THIS SECTION, ANY REVENUES

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04684-05-3

S. 2532--B                          2

DERIVED  FROM  REGULATIONS  ADOPTED  BY  THE DEPARTMENT OF ENVIRONMENTAL
CONSERVATION PURSUANT TO SUBDIVISION SIX OF SECTION 19-0301 OF THE ENVI-
RONMENTAL CONSERVATION LAW, PROCEEDS COLLECTED BUT NOT ALLOCATED BY  THE
NEW  YORK  STATE  ENERGY  RESEARCH  AND  DEVELOPMENT  AUTHORITY FROM THE
AUCTION, PURSUANT TO REGULATIONS OF SUCH AUTHORITY, OF  EMISSION  ALLOW-
ANCES  ALLOCATED BY THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION TO SUCH
AUTHORITY PURSUANT TO REGULATIONS ADOPTED BY SUCH DEPARTMENT, ANY REVEN-
UES DERIVED FROM POTENTIAL DEVELOPMENT OF THE MARCELLUS OR  UTICA  SHALE
AREAS OVER AND ABOVE THAT WHICH IS NEEDED TO ENSURE APPROPRIATE STAFF AT
THE  DEPARTMENT  OF  ENVIRONMENTAL  CONSERVATION,  DEPARTMENT OF HEALTH,
DEPARTMENT OF PUBLIC SERVICE AND OTHER RELEVANT STATE AGENCIES, AND  ANY
OTHER  ENERGY  RELATED  REVENUE THAT THE STATE MAY ACQUIRE IN CONNECTION
WITH THE DEVELOPMENT OF SUCH AREA THAT IS NOT  ALREADY  COMMITTED  TO  A
DEDICATED PROJECT OR SOURCE. MONEYS IN THE FUND SHALL BE KEPT SEPARATELY
FROM AND SHALL NOT BE COMMINGLED WITH ANY OTHER MONEYS IN THE CUSTODY OF
THE STATE COMPTROLLER. UNDER NO CIRCUMSTANCE SHALL FUNDS IN THIS ACCOUNT
BE  SWEPT,  TRANSFERRED,  SUBALLOCATED, REPURPOSED OR OTHERWISE EXPENDED
EXCEPT FOR THE EXPRESS PURPOSES OUTLINED HEREIN.
  (B) MONEYS IN THIS FUND SHALL BE USED AS SET FORTH IN THIS SECTION  TO
ASSIST  MAJOR  ELECTRIC GENERATING FACILITIES OPERATING WITHIN THE STATE
OF NEW YORK WITH INVESTMENTS IN QUALIFIED ENERGY INFRASTRUCTURE,  QUALI-
FIED  NEW  CONSTRUCTION OR REPOWERING PROJECTS; AND TO MITIGATE NEGATIVE
PROPERTY TAX OR PAYMENT IN LIEU OF TAXES IMPACTS ON COMMUNITIES WHO HAVE
LOST A MAJOR ELECTRIC GENERATING FACILITY.
  3. (A) A MAJOR ELECTRIC GENERATING FACILITY WHICH UNDERTAKES A  REPOW-
ERING PROJECT, QUALIFIED ENERGY INFRASTRUCTURE INVESTMENT OR A QUALIFIED
NEW  CONSTRUCTION  PROJECT  AS DEFINED IN THIS SUBDIVISION MAY APPLY FOR
ASSISTANCE FROM THE FUND PURSUANT TO SUBDIVISION FOUR OF THIS SECTION.
  (B) FOR THE PURPOSES OF THIS SECTION THE FOLLOWING  TERMS  SHALL  HAVE
THE FOLLOWING MEANINGS:
  (I)  "REPOWERING PROJECT" SHALL MEAN IMPROVEMENTS TO AN EXISTING MAJOR
ELECTRIC GENERATING FACILITY THAT WILL ALLOW THE FACILITY, OR A NEW UNIT
OR UNITS AT THE FACILITY, OR THE COMBINATION OF THE NEW  UNIT  OR  UNITS
AND  THE  FACILITY  TO  MEET  THE  RELEVANT  ENVIRONMENTAL  REQUIREMENTS
CONTAINED IN SUBPARAGRAPHS (I), (II), (III), AND (IV) OF  PARAGRAPH  (B)
OF  SUBDIVISION  FOUR  OF  SECTION  ONE HUNDRED SIXTY-FIVE OF THE PUBLIC
SERVICE LAW.
  (II) "QUALIFIED  ENERGY  INFRASTRUCTURE  INVESTMENT"  SHALL  MEAN  ANY
INVESTMENT  NEEDED  TO  DELIVER  A  NEW FUEL SOURCE TO AN EXISTING MAJOR
ELECTRIC GENERATING FACILITY, REPLACE OR RETROFIT A BURNER  OR  TURBINE,
UTILIZE  ON-SITE  RENEWABLE  ENERGY  GENERATION OR ANY OTHER SUBSTANTIAL
INVESTMENT THAT WILL HAVE A DIRECT IMPACT ON THE FACILITY'S  ABILITY  TO
MEET  THE  ENVIRONMENTAL  REQUIREMENTS  CONTAINED  IN SUBPARAGRAPHS (I),
(II), (III), AND (IV) OF PARAGRAPH (B) OF SUBDIVISION  FOUR  OF  SECTION
ONE HUNDRED SIXTY-FIVE OF THE PUBLIC SERVICE LAW.
  (III)  "QUALIFIED  NEW CONSTRUCTION PROJECT" SHALL MEAN CONSTRUCTING A
NEW MAJOR ELECTRIC GENERATING FACILITY ON THE SAME PROPERTY AS AN EXIST-
ING FACILITY OR ON PROPERTY DIRECTLY  ADJACENT  OR  CONTIGUOUS  TO  SAID
PROPERTY,  WHERE  THE  NEW FACILITY BY ITSELF OR IN COMBINATION WITH THE
EXISTING FACILITY WILL ALLOW THE SITE AS A WHOLE TO  MEET  THE  ENVIRON-
MENTAL  REQUIREMENTS  CONTAINED  IN  SUBPARAGRAPHS (I), (II), (III), AND
(IV) OF PARAGRAPH (B) OF SUBDIVISION FOUR OF SECTION ONE HUNDRED  SIXTY-
FIVE OF THE PUBLIC SERVICE LAW.
  (IV)  "MAJOR  ELECTRIC  GENERATING  FACILITY"  SHALL  MEAN AN ELECTRIC
GENERATING FACILITY WITH A NAMEPLATE GENERATING CAPACITY OF  TWENTY-FIVE
THOUSAND  KILOWATTS  OR  MORE, INCLUDING INTERCONNECTION ELECTRIC TRANS-

S. 2532--B                          3

MISSION LINES AND FUEL GAS TRANSMISSION LINES THAT ARE  NOT  SUBJECT  TO
REVIEW UNDER ARTICLE SEVEN OF THE PUBLIC SERVICE LAW.
  4.  THE EMPIRE STATE DEVELOPMENT CORPORATION SHALL CONDUCT COMPETITIVE
SOLICITATIONS FOR  PROPOSALS  SUBMITTED  BY  MAJOR  ELECTRIC  GENERATING
FACILITIES  UNDERTAKING ANY REPOWERING PROJECT, QUALIFIED ENERGY INFRAS-
TRUCTURE INVESTMENT PROJECT OR QUALIFIED  NEW  CONSTRUCTION  PROJECT  AS
SUCH  TERMS  ARE  DEFINED  IN THIS SECTION, FOR ASSISTANCE FROM THE FUND
ESTABLISHED PURSUANT TO THE PROVISIONS OF THIS SECTION. SUCH COMPETITIVE
SOLICITATIONS SHALL BE DESIGNED IN A MANNER AND FORM TO BE DETERMINED BY
THE EMPIRE  STATE  DEVELOPMENT  CORPORATION  IN  CONSULTATION  WITH  THE
DEPARTMENT  OF  TAXATION AND FINANCE AND THE COMPTROLLER. A SCHEDULE FOR
SUCH COMPETITIVE SOLICITATIONS, AWARD  SELECTION,  AND  DISTRIBUTION  OF
FUNDS  SHALL  BE ESTABLISHED BY THE EMPIRE STATE DEVELOPMENT CORPORATION
IN CONSULTATION WITH THE DEPARTMENT OF  TAXATION  AND  FINANCE  AND  THE
COMPTROLLER.  THE  EMPIRE  STATE  DEVELOPMENT CORPORATION SHALL RANK THE
PROPOSALS IT RECEIVED  IN  RESPONSE  TO  COMPETITIVE  SOLICITATIONS  AND
CHOOSE  THE  HIGHEST RANKED PROPOSALS MEASURED ON THE FOLLOWING CRITERIA
TO BE CONSIDERED IN THE AGGREGATE:
  (A) THE AMOUNT OF ASSISTANCE REQUESTED  IN  PROPORTION  TO  THE  TOTAL
QUANTITY   OF   MEGAWATTS  OF  NEW  GENERATION  CAPACITY  THAT  WILL  BE
CONSTRUCTED;
  (B) THE EXTENT TO WHICH AN AWARD WILL RESULT IN NEW CAPITAL INVESTMENT
IN THE STATE BY THE APPLICANT;
  (C) THE TYPE AND COST OF FACILITIES AND EQUIPMENT TO  BE  CONSTRUCTED,
ENLARGED OR INSTALLED IF THE APPLICANT WERE TO RECEIVE AN AWARD;
  (D)  THE APPLICANT'S PAYROLL, SALARIES, BENEFITS AND NUMBER OF JOBS AT
THE FACILITY FOR WHICH AN AWARD IS REQUESTED;
  (E) THE NUMBER OF JOBS THAT WILL BE CREATED OR RETAINED,  AS  APPLICA-
BLE,  WITHIN THE STATE IN RELATION TO THE REQUESTED AWARD AND THE EXTENT
TO WHICH THE APPLICANT WILL AGREE TO COMMIT TO CREATING OR RETAINING, AS
APPLICABLE, SUCH JOBS AS A CONDITION TO RECEIVING AN AWARD;
  (F) WHETHER THE APPLICANT IS AT RISK OF CLOSING OR CURTAILING  FACILI-
TIES 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 AN AWARD;
  (G) THE SIGNIFICANCE OF THE APPLICANT'S FACILITY TO THE ECONOMY OF THE
AREA IN WHICH SUCH FACILITY IS LOCATED; AND
  (H) THE EXTENT TO WHICH AN AWARD WILL RESULT IN AN  ADVANTAGE  FOR  AN
APPLICANT IN RELATION TO THE APPLICANT'S COMPETITORS WITHIN THE STATE.
  ALL  PAYMENTS  OF  MONEYS FROM THE FUND SHALL BE MADE ON THE AUDIT AND
THE WARRANT OF THE COMPTROLLER TO BE  DISBURSED  BY  THE  DEPARTMENT  OF
TAXATION  AND  FINANCE  IN  CONJUNCTION  AND CONSULTATION WITH THE COMP-
TROLLER. RECOMMENDATIONS FOR AN AWARD UNDER THIS SECTION SHALL  BE  MADE
BY  THE  EMPIRE  STATE  DEVELOPMENT CORPORATION IN ORDER TO MAXIMIZE THE
ECONOMIC DEVELOPMENT IMPACTS OF EACH POSSIBLE PROJECT.
  5. (A) PROPOSALS FOR ASSISTANCE FROM THE FUND MAY BE MADE BY A COUNTY,
CITY, TOWN, VILLAGE OR  SCHOOL  DISTRICT  THAT  HAS  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. PROPOSALS SHALL BE FILED IN A MANNER AND
FORM TO BE DETERMINED BY THE EMPIRE  STATE  DEVELOPMENT  CORPORATION  IN
CONSULTATION  WITH  THE DEPARTMENT OF TAXATION AND FINANCE AND THE COMP-
TROLLER.   FOR THE PURPOSES OF  THIS  SUBDIVISION,  SUBSTANTIAL  ADVERSE
IMPACT  SHALL  MEAN  A  SITUATION  WHERE THE CLOSURE OF A MAJOR ELECTRIC
GENERATING FACILITY REPRESENTS A  REDUCTION  IN  TAX  COLLECTIONS  TO  A

S. 2532--B                          4

MUNICIPAL  CORPORATION  OF AT LEAST TEN PERCENT OF TOTAL RECEIPTS AND IS
EXPECTED TO HAVE AN ADVERSE AND UNEXPECTED NEGATIVE IMPACT ON TAXPAYERS.
  (B)  APPLICANTS  MAY  ONLY SEEK ASSISTANCE FOR A MAXIMUM OF FIVE YEARS
AND MAY ONLY SEEK ASSISTANCE UNDER THE FOLLOWING LIMITS, WHICH SHALL  BE
CALCULATED  BASED  ON THE TOTAL AMOUNT OF TAXES COLLECTED FROM THE ELEC-
TRIC GENERATING FACILITY WHEN AVERAGING THE  PAST  FIVE  TAXABLE  YEARS,
ENDING WITH THE FINAL YEAR OF PLANT OPERATION:
  FIRST YEAR: UP TO EIGHTY PERCENT OF THE PAST FIVE YEAR AVERAGE;
  SECOND YEAR: UP TO FIFTY PERCENT OF THE PAST FIVE YEAR AVERAGE;
  THIRD YEAR: UP TO FIFTY PERCENT OF THE PAST FIVE YEAR AVERAGE;
  FOURTH YEAR: UP TO TWENTY-FIVE PERCENT OF THE PAST FIVE YEAR AVERAGE;
  FIFTH YEAR: UP TO TEN PERCENT OF THE PAST FIVE YEAR AVERAGE.
  6. THE FUND ESTABLISHED UNDER THIS SECTION SHALL ALSO INCLUDE INDIVID-
UAL  REPOWERING  SAVINGS ACCOUNTS HELD IN THE JOINT CUSTODY OF THE COMP-
TROLLER AND THE DEPARTMENT OF TAXATION AND FINANCE HELD ON BEHALF  OF  A
PARTICULAR MAJOR ELECTRIC GENERATING FACILITY AND SHALL CONSIST OF FIFTY
PERCENT  OF  THE  PROCEEDS  COLLECTED  BUT NOT ALLOCATED BY THE NEW YORK
STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY FROM THE AUCTION, PURSU-
ANT TO REGULATIONS OF SUCH AUTHORITY, OF EMISSION  ALLOWANCES  ALLOCATED
BY THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION TO SUCH AUTHORITY PURSU-
ANT  TO REGULATIONS ADOPTED BY SUCH DEPARTMENT.  FUNDS SHALL BE CREDITED
TO THE NAME AND ACCOUNT OF THE SPECIFIC GENERATOR AND EXPENDITURES  FROM
THE  FUND MAY ONLY BE MADE ON BEHALF OF SAID GENERATOR. A MAJOR ELECTRIC
GENERATOR WHICH ESTABLISHES AN  INDIVIDUAL  REPOWERING  SAVINGS  ACCOUNT
UNDER THIS SUBDIVISION MAY USE SUCH FUNDS FOR THE PURPOSES OF A REPOWER-
ING  PROJECT,  QUALIFIED ENERGY INFRASTRUCTURE INVESTMENT OR A QUALIFIED
NEW CONSTRUCTION  PROJECT  AS  DEFINED  IN  SUBDIVISION  THREE  OF  THIS
SECTION.  SUCH  FUNDS  MAY  BE  ACCESSED  FROM  AN INDIVIDUAL REPOWERING
SAVINGS ACCOUNT AFTER ANY  APPLICABLE  APPROPRIATE  APPROVALS  FROM  THE
DEPARTMENT  OF  ENVIRONMENTAL  CONSERVATION,  THE  DEPARTMENT  OF PUBLIC
SERVICE AND ANY OTHER STATE ENTITY WHOSE APPROVAL IS  REQUIRED  PURSUANT
TO  THE  SCOPE  OF THE PROJECT PROPOSED. NO DISBURSEMENT FROM AN ACCOUNT
MAY EXCEED THE COST OR VALUE OF THE WORK  PROPOSED,  AND  ONLY  EXPENSES
CONSIDERED  DIRECTLY  RELATED  TO  THE  BENEFITS  OF THE PROJECT WILL BE
ALLOWABLE.  DISBURSEMENTS FROM ACCOUNTS SHALL ONLY BE REIMBURSEMENT  FOR
ACTUAL EXPENSES PAID BY THE GENERATOR AND SHALL NOT BE ADVANCES OR OTHER
PAYMENTS.  FUNDS HELD IN ANY GIVEN INDIVIDUAL REPOWERING SAVINGS ACCOUNT
SHALL BE AVAILABLE FOR USE FOR A PERIOD OF TEN  YEARS  TOWARD  ALLOWABLE
EXPENSES  AND CAN BE RENEWED FOR AN ADDITIONAL TEN YEARS, IF THE GENERA-
TOR APPLIES FOR AN EXTENSION OF  THEIR  ACCOUNT  AND  AFTER  A  THOROUGH
REVIEW BY THE PUBLIC SERVICE COMMISSION.
  7. ALL PAYMENTS OF MONEYS FROM THE FUND SHALL BE MADE ON THE AUDIT AND
THE  WARRANT  OF  THE  COMPTROLLER  TO BE DISBURSED BY THE DEPARTMENT OF
TAXATION AND FINANCE IN CONJUNCTION  AND  CONSULTATION  WITH  THE  COMP-
TROLLER.
  S  3. Section 19-0301 of the environmental conservation law is amended
by adding a new subdivision 6 to read as follows:
  6. IN ADDITION TO EXISTING REGULATORY AUTHORITY, THE DEPARTMENT MAY:
  A. IN COOPERATION WITH THE DEPARTMENT OF PUBLIC SERVICE  AND  THE  NEW
YORK  STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY, AMEND PART 242 OF
TITLE 6 OF THE NEW YORK CODES, RULES AND REGULATIONS  TO,  IN  A  MANNER
THAT IS CONSISTENT WITH FEDERAL LAW, COVER ELECTRICITY IMPORTED INTO THE
STATE THAT IS NOT ALREADY SUBJECT TO THE COMPARABLE REGULATIONS OF OTHER
STATES,  BY THE IMPOSITION OF FEES ON THE CARBON INTENSITY OF SUCH ELEC-
TRICITY IMPORTED INTO THE STATE DEEMED NECESSARY TO MAINTAIN  THE  ENVI-

S. 2532--B                          5

RONMENTAL  INTEGRITY  OF  THE  MULTI-STATE  PROGRAM  IN  WHICH THE STATE
PARTICIPATES; AND
  B.  ASSESS  FEES EQUIVALENT TO THE AMOUNT OF PROCEEDS ARISING FROM THE
AUCTION, PURSUANT TO REGULATIONS OF THE NEW YORK STATE  ENERGY  RESEARCH
AND  DEVELOPMENT  AUTHORITY,  OF  EMISSION  ALLOWANCES  ALLOCATED BY THE
DEPARTMENT OF ENVIRONMENTAL CONSERVATION TO SUCH AUTHORITY  PURSUANT  TO
REGULATIONS ADOPTED BY SUCH DEPARTMENT.
  REVENUES  DERIVED PURSUANT TO THE PROVISIONS OF THIS SUBDIVISION SHALL
BE DIRECTED TO AND DEPOSITED INTO THE  "POWER  PLANT  MODERNIZATION  AND
COMMUNITY  ASSISTANCE FUND" ESTABLISHED UNDER SECTION EIGHTY-FIVE OF THE
STATE FINANCE LAW.
  S 4.  (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
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 the "power plant modernization and
community assistance fund" established under section  85  of  the  state
finance law.
  S  5.  This  act shall take effect on the ninetieth day after it shall
have become a law.

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