S T A T E O F N E W Y O R K
________________________________________________________________________
5536
2013-2014 Regular Sessions
I N S E N A T E
May 16, 2013
___________
Introduced by Sen. MAZIARZ -- read twice and ordered printed, and when
printed to be committed to the Committee on Energy and Telecommuni-
cations
AN ACT to amend the public service law, the public buildings law, the
state finance law, the tax law, the real property tax law and the
public authorities law, in relation to expansion of natural gas
service
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Legislative intent. The legislature hereby finds that the
expansion of natural gas service for heating purposes has multiple bene-
fits to New Yorkers, including a reduction in pollution with the result-
ant health benefits from the conversion to a cleaner fuel, increased
economic activity with the creation of jobs necessary to expand natural
gas service, energy cost savings to consumers, and an increase in energy
efficiency particularly through the use of natural gas for water heating
versus electric or propane.
Natural gas is the cleanest burning fossil fuel. It has a positive
impact on the environment by cutting emissions of particulate matter
emitted by heating oils. These emissions have been linked to heart and
lung conditions and contribute to asthma rates, particularly in urban
areas. There are greater annual emissions reductions from natural gas
conversion than the use of solar. Without expansion of natural gas
service there are limited opportunities for conversion to clean heat
from oil and propane. There are approximately 550,000 residential
customers in New York State that currently burn other fuels who are
located near natural gas service.
Natural gas prices are at a low point and the availability of natural
gas eliminates any reliability issue. Savings in heating costs through
natural gas conversion will result in increased disposable income for
consumers. It also creates a positive incentive for manufacturers and
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11148-01-3
S. 5536 2
other businesses which are looking to stabilize their energy costs.
Natural gas expansion provides a positive inducement for economic devel-
opment in the business sector.
Expanded natural gas service and conversions from oil would benefit
plumbers, wholesalers and distributors of natural gas heating equipment,
and manufacturers of such equipment. Gas corporations and combined gas
and electric corporations would be required to employ more construction
crews to respond to the work required for natural gas expansion. This
increased activity would result in significant job creation in New York
state.
The use of natural gas water heaters would be incented by natural gas
expansion. Natural gas water heaters are more economical and energy
efficient than electric hot water heaters.
This legislation will have the effect of protecting the state's
natural resources, including protecting its atmosphere from pollution,
while at the same time stimulating the development of new jobs and the
economy.
This legislation works in tandem with Case 12-G-0297, a proceeding
currently pending before the public service commission to examine poli-
cies regarding the expansion of natural gas service.
S 2. The public service law is amended by adding a new section 27 to
read as follows:
S 27. EXPANSION PERMIT APPLICATIONS. ANY GAS CORPORATION OR COMBINA-
TION GAS AND ELECTRIC CORPORATION APPLYING FOR PERMITS IN CONNECTION
WITH THE EXPANSION OF NATURAL GAS SERVICE MAY CONFER WITH THE COMMISSION
TO OBTAIN ASSISTANCE IN FACILITATING CONTACTS WITH STATE AGENCIES AND
LOCAL GOVERNMENTS FOR PROCESSING AND REVIEWING PERMIT APPLICATIONS TO
ACHIEVE THE PROMPT AND EFFICIENT PROCESSING AND REVIEW OF APPLICATIONS.
THE PUBLIC SERVICE COMMISSION MAY ACT AS LEAD AGENCY PURSUANT TO ARTICLE
EIGHT OF THE ENVIRONMENTAL CONSERVATION LAW, IN CONNECTION WITH THE
EXPANSION OF NATURAL GAS SERVICE BY A GAS CORPORATION OR COMBINATION GAS
AND ELECTRIC CORPORATION FRANCHISED UNDER THIS CHAPTER. THE DEPARTMENTS
OF TRANSPORTATION AND ENVIRONMENTAL CONSERVATION SHALL, TO THE MAXIMUM
EXTENT FEASIBLE, ESTABLISH PROCEDURES TO EXPEDITE PERMIT APPLICATIONS IN
CONNECTION WITH THE EXPANSION OF NATURAL GAS SERVICE.
S 3. The public service law is amended by adding a new section 18-d to
read as follows:
S 18-D. SURCHARGES. NOTWITHSTANDING ANY LAW, RULE, REGULATION OR ORDER
TO THE CONTRARY, THE COMMISSION SHALL, COMMENCING APRIL FIRST, TWO THOU-
SAND FOURTEEN, DEDICATE NO LESS THAN TWENTY-FIVE PERCENT OF THE AMOUNTS
OF THE SURCHARGE FOR THE SYSTEM BENEFIT CHARGE COLLECTED BY GAS CORPO-
RATIONS AND COMBINATION GAS AND ELECTRIC CORPORATIONS FROM THEIR GAS
HEATING CUSTOMERS TO THE EXTENSION AND EXPANSION OF NATURAL GAS FACILI-
TIES. THE COMMISSION SHALL BE AUTHORIZED TO INCREASE SUCH AMOUNTS TO
MORE THAN TWENTY-FIVE PERCENT AFTER A PROCEEDING TO CONSIDER SUCH
ACTION. THE COMMISSION SHALL USE SUCH FUNDS TO ESTABLISH THE FOLLOWING
PROGRAMS: A REVOLVING LOAN FUND WHICH WOULD EXCEED THE PAYBACK PERIOD OF
NATURAL GAS CONVERSION TO ENABLE CUSTOMERS TO FUND CONVERSION TO NATURAL
GAS; AND ALSO A SUBSIDY PROGRAM FOR LOW INCOME CUSTOMERS.
S 4. The public buildings law is amended by adding a new section 143
to read as follows:
S 143. CLEAN NATURAL GAS HEAT IN PUBLIC BUILDINGS. EACH CAPITAL
PROJECT FOR A PUBLIC BUILDING THAT INCLUDES THE INSTALLATION OR REPLACE-
MENT OF A BOILER FOR HEATING SHALL REQUIRE THE COMMISSIONER OF GENERAL
SERVICES TO UNDERTAKE A STUDY OF ENERGY EFFICIENCY, ENVIRONMENTAL EFFI-
CACY AND COST OF USE OF AND CONVERSION TO NATURAL GAS HEATING. SUCH
S. 5536 3
STUDY SHALL CONSIDER THE BENEFITS TO SURROUNDING COMMUNITIES IN THE
EVENT THAT IT IS NECESSARY TO EXTEND A MAIN PIPELINE IN EXCESS OF ONE
HUNDRED FEET TO OBTAIN SUCH SERVICES.
S 5. The state finance law is amended by adding a new section 92-gg to
read as follows:
S 92-GG. GAS EXPANSION MITIGATION FUND. 1. THERE IS HEREBY ESTABLISHED
IN THE JOINT CUSTODY OF THE STATE COMPTROLLER AND THE COMMISSIONER OF
TAXATION AND FINANCE, A SPECIAL FUND TO BE KNOWN AS THE "GAS EXPANSION
MITIGATION FUND."
2. SUCH FUND SHALL CONSIST OF MONEYS CREDITED OR TRANSFERRED WITHOUT
APPROPRIATION THERETO OVER AND ABOVE A BASE LEVEL PURSUANT TO THE STAND-
ARDS CONTROLLING CHAPTER ELEVEN OF TITLE TWENTY-ONE OF THE NEW YORK
STATE CODES, RULES AND REGULATIONS RELATED TO ANY MONIES RECEIVED FROM
ASSESSMENTS OR AUCTIONS.
3. (A) MONIES FROM THE GAS EXPANSION MITIGATION FUND SHALL BE AVAIL-
ABLE BEFORE ANY OTHER USE OF SUCH FUNDS TO THE NEW YORK STATE PUBLIC
SERVICE COMMISSION FOR A REVOLVING LOAN FUND TO MAKE LOANS TO CONSUMERS
WHEN CONVERTING TO A NATURAL GAS HEATING SYSTEM FROM AN OIL OR PROPANE
HEATING SYSTEM. THE NEW YORK STATE PUBLIC SERVICE COMMISSION SHALL HAVE
THE POWER TO MAKE SUCH RULES AND REGULATIONS AS MAY BE NECESSARY AND
PROPER TO EFFECTUATE THE PURPOSES OF THIS SECTION.
(B) IF MONIES AVAILABLE IN THE GAS EXPANSION FUND EXCEED THE AMOUNTS
AUTHORIZED IN PARAGRAPH (A) OF THIS SUBDIVISION, ANY REMAINING RECEIPTS
SHALL BE USED TO ESTABLISH A PROGRAM TO BE ADMINISTERED BY THE NEW YORK
STATE PUBLIC SERVICE COMMISSION TO ASSIST LOW AND FIXED INCOME CUSTOMERS
IN CONVERTING FROM AN OIL OR PROPANE HEATING SYSTEM TO A NATURAL GAS
HEATING SYSTEM. THE PUBLIC SERVICE COMMISSION SHALL HAVE THE POWER TO
MAKE SUCH RULES AND REGULATIONS AS MAY BE NECESSARY TO EFFECTUATE THE
PURPOSES OF THIS SECTION.
4. MONEYS IN THE FUND SHALL BE KEPT SEPARATELY FROM AND SHALL NOT BE
CO-MINGLED WITH ANY OTHER MONEYS IN CUSTODY OF THE STATE COMPTROLLER.
5. ALL PAYMENTS OF MONEYS FROM THE FUND SHALL BE MADE ON THE AUDIT AND
WARRANT OF THE COMPTROLLER.
S 6. Section 606 of the tax law is amended by adding a new subsection
(ww) to read as follows:
(WW) CREDIT FOR A NATURAL GAS SERVICE SYSTEM FOR HEATING TO REPLACE AN
OIL OR PROPANE HEATING SYSTEM. (1) A TAXPAYER SHALL BE ALLOWED A CREDIT
FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND
FOURTEEN AND ENDING BEFORE DECEMBER THIRTY-FIRST, TWO THOUSAND SEVENTEEN
AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR THE PURCHASE AND INSTALLA-
TION OF A NATURAL GAS SERVICE SYSTEM FOR HEATING TO REPLACE AN OIL OR
PROPANE HEATING SYSTEM BY A TAXPAYER IN HIS OR HER PRINCIPAL RESIDENCE,
IF SUCH RESIDENCE IS LOCATED WITHIN THE STATE. THE AMOUNT OF THE CREDIT
SHALL BE FIFTY PERCENT OF THE EXPENDITURE INCURRED IN PURCHASING AND
INSTALLING ANY SUCH SYSTEM OR COMBINATION THEREOF, BUT NOT TO EXCEED THE
MAXIMUM CREDIT OF TWO THOUSAND SEVEN HUNDRED FIFTY DOLLARS.
(2) A NATURAL GAS SERVICE SYSTEM FOR HEATING IS A SYSTEM: WHOSE
ORIGINAL USE BEGINS WITH THE TAXPAYER; WHICH MEETS THE ELIGIBILITY
CRITERIA, IF ANY, PRESCRIBED BY THE DEPARTMENT; AND WHICH IS AN ACTIVE
NATURAL GAS ENERGY SYSTEM WHICH SHALL MEAN AN ARRANGEMENT OR COMBINATION
OF COMPONENTS DESIGNED TO PROVIDE HEATING, COOLING OR HOT WATER THROUGH
THE MATERIAL AND INSTALLATION OF SERVICE CONNECTIONS AND APPURTENANT
FACILITIES NECESSARY TO RENDER NATURAL GAS SERVICE AND TO REPLACE THE
OIL OR PROPANE HEATING SYSTEM.
(3) WHERE A NATURAL GAS SERVICE SYSTEM FOR HEATING IS PURCHASED AND
INSTALLED BY A CONDOMINIUM MANAGEMENT ASSOCIATION OR A COOPERATIVE HOUS-
S. 5536 4
ING CORPORATION, A TAXPAYER WHO IS A MEMBER OF THE CONDOMINIUM MANAGE-
MENT ASSOCIATION OR WHO IS A TENANT-STOCKHOLDER IN THE COOPERATIVE HOUS-
ING CORPORATION MAY FOR THE PURPOSE OF THIS SUBSECTION CLAIM A
PROPORTIONATE SHARE OF THE TOTAL EXPENSE AS THE EXPENDITURE FOR THE
PURPOSES OF THE CREDIT ATTRIBUTABLE TO HIS PRINCIPAL RESIDENCE.
(4) WHERE A NATURAL GAS SERVICE SYSTEM FOR HEATING IS PURCHASED AND
INSTALLED IN A PRINCIPAL RESIDENCE SHARED BY TWO OR MORE TAXPAYERS THE
AMOUNT OF THE CREDIT ALLOWABLE UNDER THIS SUBSECTION FOR EACH SUCH
TAXPAYER SHALL BE PRORATED ACCORDING TO THE PERCENTAGE OF THE TOTAL
EXPENDITURE FOR SUCH SYSTEM CONTRIBUTED BY EACH TAXPAYER.
(5) TO THE EXTENT THAT A FEDERAL INCOME TAX CREDIT SHALL APPLY TO
EXPENDITURES ELIGIBLE FOR A CREDIT UNDER THIS SUBSECTION, THE CREDIT
PROVIDED IN THIS SUBSECTION SHALL BE REDUCED SO THAT THE COMBINED CREDIT
SHALL NOT EXCEED FIFTY PERCENT OF SUCH EXPENDITURES OR SIX THOUSAND
SEVEN HUNDRED FIFTY DOLLARS, WHICHEVER IS LESS.
(6) IF THE AMOUNT OF CREDIT ALLOWABLE UNDER THIS SUBSECTION SHALL
EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS MAY BE CARRIED OVER
TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S
TAX FOR SUCH YEAR OR YEARS.
(7) IF ALL OR ANY PART OF THE CREDIT PROVIDED FOR UNDER THIS
SUBSECTION WAS ALLOWED OR CARRIED OVER FROM A PRIOR TAXABLE YEAR OR
YEARS, A TAXPAYER SHALL REDUCE THE ALLOWABLE CREDIT FOR ADDITIONAL QUAL-
IFYING EXPENDITURES IN A SUBSEQUENT TAX YEAR BY THE AMOUNT OF THE CREDIT
PREVIOUSLY ALLOWED OR CARRIED OVER; PROVIDED HOWEVER THAT A CREDIT
PREVIOUSLY ALLOWED OR CARRIED OVER FROM A PRIOR TAXABLE YEAR OR YEARS
SHALL NOT BE TAKEN INTO ACCOUNT IN DETERMINING THE ALLOWABLE CREDIT FOR
THE PURCHASE AND INSTALLATION OF A NATURAL GAS SERVICE SYSTEM FOR HEAT-
ING IN A SUBSEQUENT PRINCIPAL RESIDENCE.
(8) FOR THE PURPOSE OF DETERMINING THE AMOUNT OF THE ACTUAL EXPENDI-
TURE INCURRED IN PURCHASING AND INSTALLING A NATURAL GAS SERVICE SYSTEM
FOR HEATING, THE AMOUNT OF ANY FEDERAL, STATE OR LOCAL GRANT RECEIVED BY
THE TAXPAYER, WHICH WAS USED FOR THE PURCHASE AND/OR INSTALLATION OF
SUCH SYSTEM AND WHICH WAS NOT INCLUDED IN THE GROSS INCOME OF THE
TAXPAYER, SHALL NOT BE TAKEN INTO ACCOUNT.
S 7. The real property tax law is amended by adding a new section
485-r to read as follows:
S 485-R. EXTENSION AND EXPANSION OF NATURAL GAS SUPPLY THROUGH THE
CONSTRUCTION OF NATURAL GAS DISTRIBUTION FACILITIES. 1. DEFINITIONS. (A)
FOR PURPOSES OF THIS SECTION, "NATURAL GAS DISTRIBUTION FACILITIES"
SHALL MEAN ANY MAIN LINE, SERVICE LINE AND APPURTENANT FACILITIES
CONSTRUCTED TO EXTEND NATURAL GAS SUPPLY TO NEW CUSTOMERS OF A GAS
CORPORATION OR A COMBINATION GAS AND ELECTRIC CORPORATION WITH THEIR
CONSENT.
2. AFTER A PUBLIC HEARING, THE GOVERNING BODY OF A COUNTY, CITY, TOWN
OR VILLAGE MAY ADOPT A LOCAL LAW AND A SCHOOL DISTRICT, OTHER THAN A
SCHOOL DISTRICT SUBJECT TO ARTICLE FIFTY-TWO OF THE EDUCATION LAW, MAY
ADOPT A LOCAL LAW OR RESOLUTION TO GRANT AN EXEMPTION AUTHORIZED PURSU-
ANT TO THIS SECTION. A COPY OF SUCH LOCAL LAW OR RESOLUTION SHALL BE
FILED WITH THE COMMISSIONER AND THE TAX ASSESSOR OF SUCH COUNTY, CITY,
TOWN OR VILLAGE WHO PREPARES THE ASSESSMENT ROLL ON WHICH THE TAXES OF
SUCH COUNTY, CITY, TOWN, VILLAGE OR SCHOOL DISTRICT ARE LEVIED.
3. SUCH NATURAL GAS DISTRIBUTION FACILITIES SHALL BE EXEMPT TO THE
EXTENT OF THE INCREASE IN THE ASSESSED VALUE THEREOF ATTRIBUTABLE TO THE
CONSTRUCTION OF SUCH NATURAL GAS FACILITIES. THE LENGTH OF SUCH
EXEMPTION AND THE PERCENTAGE OF ASSESSED VALUATION EXEMPT FROM TAXATION
S. 5536 5
SHALL BE SET FORTH IN SUCH LOCAL LAW OR RESOLUTION, BUT IN NO EVENT
SHALL IT EXCEED TEN YEARS.
4. SUCH EXEMPTION SHALL BE GRANTED ONLY UPON APPLICATION BY A GAS
CORPORATION OR COMBINATION GAS AND ELECTRIC CORPORATION WITH APPROVAL
FROM THE PUBLIC SERVICE CORPORATION FOR CONSTRUCTION OF SUCH NATURAL GAS
FACILITIES.
S 8. The public service law is amended by adding a new section 18-b to
read as follows:
S 18-B. NOTWITHSTANDING ANY LAW, RULE, REGULATION OR ORDER TO THE
CONTRARY, A CUSTOMER WHO HAS CONVERTED TO NATURAL GAS SERVICE FOR HEAT-
ING TO REPLACE OIL OR PROPANE SERVICE AND IS SUBJECT TO A SURCHARGE
PURSUANT TO 16 NYCRR 230.3 RELATING TO MAINS AND APPURTENANT FACILITIES
SHALL NOT BE REQUIRED WITH RESPECT TO NATURAL GAS SERVICES CHARGES TO
PAY THE FOLLOWING: A SURCHARGE FOR THE SYSTEM BENEFIT CHARGE, OR THE
TEMPORARY STATE ENERGY AND UTILITY SERVICE CONSERVATION ASSESSMENT
PURSUANT TO SECTION EIGHTEEN-A OF THIS ARTICLE IN EXCESS OF ONE PERCENT
FOR THE PERIOD DURING WHICH THE SURCHARGE PURSUANT TO 16 NYCRR 230.3 IS
APPLICABLE.
S 9. The real property tax law is amended by adding a new section
485-q to read as follows:
S 485-Q. EXTENSION AND EXPANSION OF NATURAL GAS SUPPLY THROUGH THE
CONSTRUCTION OF NATURAL GAS DISTRIBUTION FACILITIES. 1. DEFINITIONS. (A)
FOR PURPOSES OF THIS SECTION, "NATURAL GAS DISTRIBUTION FACILITIES"
SHALL MEAN ANY MAIN LINE, SERVICE LINE AND APPURTENANT FACILITIES
CONSTRUCTED TO EXTEND NATURAL GAS SUPPLY TO NEW CUSTOMERS OF A GAS
CORPORATION OR A COMBINATION GAS AND ELECTRIC CORPORATION WITH THEIR
CONSENT.
2. WITHIN A CITY HAVING A POPULATION OF ONE MILLION OR MORE, NATURAL
GAS DISTRIBUTION FACILITIES SHALL BE EXEMPT TO THE EXTENT OF THE
INCREASE IN THE ASSESSED VALUE THEREOF ATTRIBUTABLE TO THE CONSTRUCTION
OF SUCH NATURAL GAS FACILITIES. SUCH NATURAL GAS DISTRIBUTION FACILITIES
SHALL BE EXEMPT FROM ALL LOCAL AND MUNICIPAL TAXES, OTHER THAN ASSESS-
MENTS FOR LOCAL IMPROVEMENTS, DURING THE TAX YEAR OR YEARS NEXT FOLLOW-
ING THE TAXABLE STATUS DATE OR DATES AFTER THE COMMENCEMENT AND BEFORE
THE COMPLETION OF CONSTRUCTION BUT FOR NO MORE THAN TWO YEARS AFTER
COMMENCEMENT OF SUCH CONSTRUCTION AND SHALL BE EXEMPT FROM SUCH LOCAL
AND MUNICIPAL TAXES AFTER THE EARLIER OF COMPLETION OF SUCH CONSTRUCTION
OR THE END OF SUCH TWO YEAR PERIOD AS FOLLOWS: TWO YEARS OF EXEMPTION
FROM ALL SUCH TAXES; FOLLOWED BY ONE YEAR OF EXEMPTION FROM SEVENTY-FIVE
PERCENT OF SUCH TAXES; FOLLOWED BY ONE YEAR OF EXEMPTION FROM FIFTY
PERCENT OF SUCH TAXES; FOLLOWED BY ONE YEAR OF EXEMPTION FROM
TWENTY-FIVE PERCENT OF SUCH TAXES.
3. CONSTRUCTION OF NATURAL GAS DISTRIBUTION FACILITIES SHALL BE DEEMED
TO HAVE COMMENCED WHEN THE AGENCY OR DEPARTMENT OF THE CITY HAVING
JURISDICTION HAS ISSUED A PERMIT FOR CONSTRUCTION WORK AND SUCH WORK HAS
BEGUN IN GOOD FAITH IN ACCORDANCE WITH SUCH PERMIT.
4. APPLICATION FOR EXEMPTION UNDER THIS SECTION SHALL BE FILED WITH
THE ASSESSORS BETWEEN FEBRUARY FIRST AND MARCH FIFTEENTH OF THE CALENDAR
YEAR AND BASED ON APPROVAL BY THE PUBLIC SERVICE COMMISSION OF
CONSTRUCTION OF SUCH NATURAL GAS DISTRIBUTION FACILITIES, THE ASSESSORS
SHALL CERTIFY TO THE COLLECTING OFFICER THE AMOUNT OF THE EXEMPTION FROM
LOCAL AND MUNICIPAL TAXES. NO SUCH APPLICATION SHALL BE ACCEPTED BY THE
ASSESSORS UNLESS ACCOMPANIED BY AN APPROVAL FROM THE PUBLIC SERVICE
COMMISSION.
5. SUCH EXEMPTION SHALL BE GRANTED ONLY UPON APPLICATION BY A GAS
CORPORATION OR COMBINATION GAS AND ELECTRIC CORPORATION WITH APPROVAL
S. 5536 6
FROM THE PUBLIC SERVICE CORPORATION FOR CONSTRUCTION OF SUCH NATURAL GAS
FACILITIES.
S 10. Section 1001 of the public authorities law is amended by adding
a new undesignated paragraph to read as follows:
IT IS FURTHER DECLARED THAT THERE ARE SIGNIFICANT ENVIRONMENTAL,
ECONOMIC AND HEALTH BENEFITS FROM THE EXPANSION OF NATURAL GAS SERVICE
TO ENABLE RESIDENTIAL AND COMMERCIAL CUSTOMERS WITH THE OPTION TO
CONVERT FROM OIL OR PROPANE HEATING TO NATURAL GAS SERVICE. A CRITICAL
ELEMENT OF NATURAL GAS SERVICE EXPANSION IS THE FINANCING OF THE
CONSTRUCTION AND INVESTMENT IN EQUIPMENT NECESSARY FOR GAS CORPORATIONS
AND COMBINED GAS AND ELECTRIC CORPORATIONS TO CONVERT FROM OIL OR
PROPANE HEATING SYSTEMS. THE AUTHORITY IS AUTHORIZED TO MAKE LOANS TO
GAS CORPORATIONS AND COMBINED GAS AND ELECTRIC CORPORATIONS TO EFFECTU-
ATE NATURAL GAS SERVICE EXPANSION WHICH IS APPROVED BY THE PUBLIC
SERVICE COMMISSION.
S 11. The public authorities law is amended by adding a new section
1005-b to read as follows:
S 1005-B. ADDITIONAL SPECIAL POWERS OF THE AUTHORITY WITH RESPECT TO
NATURAL GAS SERVICE EXPANSION TO PERMIT CONVERSION TO GAS HEATING. IN
ORDER TO EFFECTUATE THE PURPOSES OF THIS TITLE, THE AUTHORITY SHALL HAVE
THE FOLLOWING ADDITIONAL SPECIAL POWERS: TO EXTEND CREDIT AND MAKE LOANS
TO A GAS CORPORATION OR A COMBINED GAS AND ELECTRIC CORPORATION FRAN-
CHISED BY THE PUBLIC SERVICE COMMISSION IN CONNECTION WITH A NATURAL GAS
SERVICE EXPANSION PROJECT APPROVED BY THE PUBLIC SERVICE COMMISSION FOR
COSTS INCURRED WITH SUCH PROJECTS COMPLETED OR NOT, COMPLETED AT THE
TIME OF SUCH CREDIT OR LOAN, WHICH CREDITS OR LOANS MAY, BUT NEED NOT BE
SECURED BY MORTGAGES, CONTRACTS OR OTHER INSTRUMENTS, UPON SUCH TERMS
AND CONDITIONS AS THE CORPORATION MAY DEEM REASONABLE IN CONNECTION WITH
SUCH CREDITS OR LOANS. IN THE EXERCISE OF POWERS GRANTED IN THIS SECTION
IN CONNECTION WITH A NATURAL GAS SERVICE EXPANSION PROJECT APPROVED BY
THE PUBLIC SERVICE COMMISSION FOR A GAS CORPORATION OR A COMBINED GAS
AND ELECTRIC CORPORATION, TO REQUIRE THE INCLUSION IN ANY CONTRACT, LOAN
AGREEMENT OR OTHER INSTRUMENT, OF SUCH PROVISIONS FOR THE FINANCING OF
SUCH PROJECT AND SUCH OTHER FINANCIAL AND OTHER COVENANTS APPLYING TO
SUCH GAS CORPORATIONS OR A COMBINED GAS AND ELECTRIC CORPORATION, AS THE
CORPORATION MAY DEEM NECESSARY OR DESIRABLE AND TO DO ALL THINGS AND TO
EXECUTE ALL INSTRUMENTS NECESSARY AND DESIRABLE IN CONNECTION THEREWITH.
IN CONNECTION WITH THE EXTENSION OF ANY SUCH CREDIT OR LOAN, THE AUTHOR-
ITY MAY FIX AND COLLECT SUCH FEES AND CHARGES, INCLUDING BUT NOT LIMITED
TO REIMBURSEMENT OF ALL COSTS OF FINANCING BY THE CORPORATION AS SHALL
BE REASONABLE. IN CONNECTION WITH SUCH EXTENSION OF CREDIT OR LOAN AS
PROVIDED FOR HEREIN SUCH GAS CORPORATION OR A COMBINED GAS AND ELECTRIC
CORPORATION SHALL SUBMIT TO THE AUTHORITY AN APPLICATION FOR THE EXTEN-
SION OF CREDIT OR LOAN AS SET FORTH IN THE APPLICATION. THE AUTHORITY
MAY DENY ANY SUCH APPLICATION FOR ANY REASON IT DEEMS IN THE PUBLIC
INTEREST. THE EXTENSION OF ANY SUCH CREDIT OR LOAN IS SUBJECT TO
APPROVAL BY THE PUBLIC SERVICE COMMISSION OF THE PROJECT OR PROJECTS FOR
SUCH NATURAL GAS SERVICE EXPANSION.
S 12. Subdivision 1 of section 1010 of the public authorities law, as
amended by chapter 972 of the laws of 1969, is amended to read as
follows:
1. The authority shall have power and is hereby authorized from time
to time to issue its negotiable bonds in conformity with applicable
provisions of the uniform commercial code for the purpose of financing
any project authorized by this title, including the acquisition of any
real or personal property or facilities deemed necessary by the authori-
S. 5536 7
ty, AND FOR THE MAKING OF LOANS TO A GAS CORPORATION OR A COMBINATION
GAS AND ELECTRIC CORPORATION FRANCHISED BY THE PUBLIC SERVICE COMMISSION
FOR THE PURPOSES OF SECTION ONE THOUSAND FIVE-B OF THIS TITLE.
S 13. This act shall take effect immediately.