senate Bill S5536A

2013-2014 Legislative Session

Relates to the expansion of natural gas service in this state

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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
Jun 20, 2014 committed to rules
Jun 09, 2014 advanced to third reading
Jun 03, 2014 2nd report cal.
Jun 02, 2014 1st report cal.1077
Feb 10, 2014 reported and committed to finance
Jan 14, 2014 print number 5536c
amend and recommit to energy and telecommunications
Jan 09, 2014 print number 5536b
amend and recommit to energy and telecommunications
Jan 08, 2014 referred to energy and telecommunications
returned to senate
died in assembly
Jun 10, 2013 referred to energy
delivered to assembly
passed senate
Jun 04, 2013 ordered to third reading cal.1037
reported and committed to rules
May 23, 2013 print number 5536a
amend (t) and recommit to energy and telecommunications
May 16, 2013 referred to energy and telecommunications

Votes

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Jun 2, 2014 - Finance committee Vote

S5536C
28
3
committee
28
Aye
3
Nay
6
Aye with Reservations
0
Absent
0
Excused
0
Abstained
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Feb 10, 2014 - Energy and Telecommunications committee Vote

S5536C
10
0
committee
10
Aye
0
Nay
0
Aye with Reservations
0
Absent
0
Excused
0
Abstained
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Committee Vote: Feb 10, 2014

Jun 4, 2013 - Rules committee Vote

S5536A
24
0
committee
24
Aye
0
Nay
1
Aye with Reservations
0
Absent
0
Excused
0
Abstained
show Rules committee vote details

Jun 4, 2013 - Energy and Telecommunications committee Vote

S5536A
10
0
committee
10
Aye
0
Nay
1
Aye with Reservations
0
Absent
0
Excused
0
Abstained
show Energy and Telecommunications committee vote details

Energy and Telecommunications Committee Vote: Jun 4, 2013

aye wr (1)

Bill Amendments

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

S5536 - Bill Details

See Assembly Version of this Bill:
A7900
Current Committee:
Law Section:
Public Service Law
Laws Affected:
Add §§27 & 18-d, Pub Serv L; add §143, Pub Bldg L; add §§485-r & 485-q, RPT L; amd §§1001 & 1010, add §1005-b, Pub Auth L

S5536 - Bill Texts

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Enacts provisions to provide for and assist in the expansion of natural gas service in this state for environmental and economic benefit.

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BILL NUMBER:S5536

TITLE OF BILL: 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

PURPOSE OR GENERAL IDEA OF BILL: To provide incentives aimed at
encouraging the extension of existing gas lines and greater deployment
of natural gas service to unserved and underserved areas.

SUMMARY OF SPECIFIC PROVISIONS: Section 1. Legislative intent.

Section 2. This section requires the PSC to facilitate contacts with
state agencies and local governments with respect to review of permit
applications on expansion of natural gas service. The PSC is
authorized to act as lead agency for SEQRA on natural gas expansion.
In addition DOT and EnCon to extent feasible are to expedite
applications for expansion of natural gas.

Section 3. This section requires that 25% of the revenue generated by
the SEC surcharge collected from natural gas heating customers be
dedicated to a revolving loan fund for natural gas conversions and a
subsidy program for low income customers.

Section 4. This section mandates that OGS undertake a study on
conversion to natural gas heating when a public building is subject to
a capital project which requires installation or replacement of a
boiler for heating. The study must also consider benefits to the
community from an extension of pipeline.

Section 5. This section establishes a natural gas expansion mitigation
fund to be comprised of RGGI monies. Such funds would first be used
for a revolving loan fund for consumers converting to natural gas. It
also provides for the PSC to use funds to assist low and fixed income
consumers converting to natural gas heating from oil or propane.

Section 6. This section provides a taxpayer with a credit for the
purchase and installation of a natural gas service system for heating
to replace an oil or propane heating system. The credit is 50% of the
cost of purchase and installation of such system capped at 52,750.

Section 7. This section provides a real property tax exemption at
local option to the extent of the increase in the assessed value
attributable to the construction of natural gas distribution
facilities. The length and percentage of the exemption is determined
by local law or resolution.

Section 8. This section would provide a natural gas customer who is
subject to a surcharge in order to provide natural gas service with an
exemption from the system benefit charge and 18-a surcharge during the
life of the surcharge for natural gas service,

Section 9. This section creates a real property tax exemption in New
York City for the construction of natural gas facilities based on the
increase in value attributable to the construction. The exemption


applies during construction for 2 years maximum; after construction it
is 2 years 100%, 1 year 75%, 1 year 50%, and 1 year 25%.

Sections 10-12-These sections would permit the Power Authority to make
loans to public utilities for natural gas service expansion.

Section 13 Sets for the effective date.

JUSTIFICATION: There are currently 555,000 households that lie within
100 feet of an existing gas distribution line, and 580,000 homes that
exist beyond a 100 feet of a line but within an existing natural gas
utility franchise. 33% of New Yorkers who heat their homes with
something other than natural gas live within an existing franchise.

Natural gas prices are at an all time low, and in comparison to other
alternative heating fuels, access to natural gas service would save a
typical customer $1300 per year and as much as $5000 a year when used
in combination with a high efficiency furnace or boiler. In addition,
the environmental benefits of natural gas are well documented,
including significant reductions in sulfur dioxide, nitrogen dioxide,
particulate matter and Carbon Dioxide when compared with other fossil
fuels.

Natural gas access is also a strong tool for job creation, since the
reduced costs inherent to using gas to heat a building are a strong
incentive for a business to locate in an area that has that service.

In recognition of these factors, the Public Service Commission (PSC)
initiated case 12-G-0297 last November, in order to review Commission
policies on natural gas infrastructure expansion and make
recommendations to the PSC for how to move forward. This bill seeks to
build on that case, by offering new incentives to consumers and
providing new tools to investor owned utilities in order to facilitate
a more rapid expansion of natural gas service delivery to customers.
The goal is for this legislation to be complimentary to the
Commission's efforts and enhance their ability to effectuate gas
service extensions. This policy is good for consumers, good for
business and good for the environment.

LEGISLATIVE HISTORY: This is a new bill

FISCAL IMPLICATIONS: To be determined

EFFECTIVE DATE: This act shall take effect immediately.

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                    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.

Co-Sponsors

view additional co-sponsors

S5536A - Bill Details

See Assembly Version of this Bill:
A7900
Current Committee:
Law Section:
Public Service Law
Laws Affected:
Add §§27 & 18-d, Pub Serv L; add §143, Pub Bldg L; add §§485-r & 485-q, RPT L; amd §§1001 & 1010, add §1005-b, Pub Auth L

S5536A - Bill Texts

view summary

Enacts provisions to provide for and assist in the expansion of natural gas service in this state for environmental and economic benefit.

view sponsor memo
BILL NUMBER:S5536A

TITLE OF BILL: An act to amend the public service law, the public
buildings law, the real property tax law and the public authorities
law, in relation to expansion of natural gas service

PURPOSE OR GENERAL IDEA OF BILL: To provide incentives aimed at
encouraging the extension of existing gas lines to unserved and
underserved areas.

SUMMARY OF SPECIFIC PROVISIONS: Section 1. Legislative intent.

Section 2. This section requires the PSC to facilitate contacts with
state agencies and local governments with respect to review of permit
applications on expansion of natural gas lines.

Section 3. This section requires that 250 of the revenue generated by
the SBC surcharge to be allocated for the purpose of natural gas line
extensions.

Section 4. This section mandates that OGS undertake a study on
conversion to natural gas heating when a public building is subject to
a capital project which requires installation or replacement of a
boiler for heating. The study must also consider benefits to the
community from an extension of pipeline.

Section 5. This section provides a real property tax exemption at
local option to the extent of the increase in the assessed value
attributable to the construction of natural gas distribution
facilities. The length and percentage of the exemption is determined
by local law or resolution.

Section 6. This section creates a real property tax exemption in New
York City at local option for the construction of natural gas
facilities.

Sections 7, 8 and 9 amend the public authorities law with regard to
the New York Power Authority.

Section 10 is the effective date.

JUSTIFICATION: There are currently 555,000 households that lie within
100 feet of an existing gas distribution line, and 580,000 homes that
exist beyond a 100 feet of a line but within an existing natural gas
utility franchise. Many small businesses and other commercial
operations are in similar circumstances.

Natural gas prices are at an all time low, and access to natural gas
can save customers significant amounts annually. In addition, the
environmental benefits of natural gas are well documented, including
significant reductions in sulfur dioxide, nitrogen dioxide,
particulate matter and carbon dioxide.

Natural gas access is a strong tool for job creation, since the
reduced costs inherent to using gas to heat a building are a strong
incentive for a business to locate in an area that has that service.


This bill provides new incentives to facilitate extension of natural
gas lines to spur economic development, create jobs, and lower costs.
This policy is good for consumers, good for business and good for the
environment.

LEGISLATIVE HISTORY: This is a new bill

FISCAL IMPLICATIONS: To be determined

EFFECTIVE DATE: This act shall take effect immediately.

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

                                 5536--A

                       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  --  committee  discharged, bill amended, ordered reprinted as
  amended and recommitted to said committee

AN ACT to amend the public service law, the public  buildings  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
extension of natural gas lines within the state has multiple benefits to
New Yorkers, including a  reduction  in  pollution  with  the  resultant
health  benefits,  increased economic activity with the creation of jobs
through improved energy infrastructure, energy cost savings  to  consum-
ers, and improved energy efficiency.
  Natural  gas  is  the  cleanest burning fossil fuel. It has a positive
impact on the environment by cutting emissions  of  particulate  matter.
These  emissions  have  been  linked  to  heart  and lung conditions and
contribute to asthma rates, particularly in urban areas.
  Natural gas prices are at a low point and  will  result  in  increased
disposable  income for consumers and improved operational efficiency for
business. Extending the state's natural  gas  line  infrastructure  will
create a positive business environment for manufacturers and other busi-
nesses  that  are  looking  to stabilize their energy costs. Natural gas
line extensions will spur economic development in  the  business  sector
and create jobs.
  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.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11148-03-3

S. 5536--A                          2

  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 THROUGH THE EXTENSION OF
EXISTING GAS LINES 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 ENVI-
RONMENTAL CONSERVATION LAW, IN CONNECTION WITH SUCH  PERMIT  APPLICATION
BY  A  GAS CORPORATION OR COMBINATION GAS AND ELECTRIC CORPORATION FRAN-
CHISED UNDER THIS CHAPTER.  THE DEPARTMENTS OF TRANSPORTATION AND  ENVI-
RONMENTAL  CONSERVATION SHALL, TO THE MAXIMUM EXTENT FEASIBLE, ESTABLISH
PROCEDURES TO EXPEDITE PERMIT APPLICATIONS IN CONNECTION WITH THE EXPAN-
SION OF NATURAL GAS SERVICE THROUGH THE EXTENSION OF EXISTING GAS LINES.
  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 ALLOCATE SUCH FUNDS  TO  GAS  CORPORATIONS
AND  COMBINATION  GAS  AND  ELECTRIC  CORPORATIONS THROUGH A STAKEHOLDER
PROCESS ESTABLISHED BY THE COMMISSION. SUCH  STAKEHOLDER  PROCESS  SHALL
ESTABLISH  RULES AND PROCEDURES FOR ALLOCATIONS PURSUANT TO THIS SECTION
CONSISTENT WITH THE PUBLIC POLICY GOALS OF THE STATE.
  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 USING NATURAL GAS HEATING. SUCH  STUDY  SHALL  CONSIDER
THE  BENEFITS  TO SURROUNDING COMMUNITIES IN THE EVENT THAT IT IS NECES-
SARY TO EXTEND A MAIN PIPELINE IN EXCESS OF ONE HUNDRED FEET  TO  OBTAIN
SUCH SERVICES.
  S  5.  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  EXISTING NATURAL GAS LINE INFRASTRUCTURE TO NEW
CUSTOMERS OF A GAS CORPORATION OR A COMBINATION GAS AND ELECTRIC  CORPO-
RATION 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,

S. 5536--A                          3

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
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
DISTRIBUTION FACILITIES.
  S  6.  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 DISTRIBUTION  FACILI-
TIES.  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 EXISTING NATURAL GAS LINE
INFRASTRUCTURE TO NEW CUSTOMERS OF A GAS CORPORATION  OR  A  COMBINATION
GAS AND ELECTRIC CORPORATION WITH THEIR CONSENT.
  2. (A) WITHIN A CITY HAVING A POPULATION OF ONE MILLION OR MORE, AFTER
A  PUBLIC  HEARING,  THE GOVERNING BODY OF SUCH A CITY MAY ADOPT A LOCAL
LAW OR RESOLUTION TO GRANT AN  EXEMPTION  AUTHORIZED  PURSUANT  TO  THIS
SECTION.  A COPY OF SUCH LOCAL LAW OR RESOLUTION SHALL BE FILED WITH THE
COMMISSIONER AND THE TAX ASSESSOR OF SUCH CITY WHO PREPARES THE  ASSESS-
MENT ROLL ON WHICH THE TAXES OF SUCH CITY ARE LEVIED.
  (B)  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
SHALL BE SET FORTH IN SUCH LOCAL LAW OR  RESOLUTION,  BUT  IN  NO  EVENT
SHALL IT EXCEED TEN YEARS.
  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
FROM THE PUBLIC SERVICE CORPORATION FOR CONSTRUCTION OF SUCH NATURAL GAS
DISTRIBUTION FACILITIES.
  S 7. 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 ECONOMIC BENEFITS
FROM THE EXTENSION OF NATURAL  GAS  LINE  INFRASTRUCTURE.    A  CRITICAL
ELEMENT  OF  NATURAL  GAS  LINE  EXTENSIONS  IS  THE  FINANCING  OF  THE
CONSTRUCTION AND INVESTMENT NECESSARY FOR SUCH NATURAL GAS  LINE  EXTEN-
SIONS. THE AUTHORITY IS AUTHORIZED TO MAKE LOANS TO GAS CORPORATIONS AND
COMBINED  GAS  AND  ELECTRIC CORPORATIONS TO EFFECTUATE THE EXTENSION OF

S. 5536--A                          4

EXISTING NATURAL GAS LINE INFRASTRUCTURE WHICH IS APPROVED BY THE PUBLIC
SERVICE COMMISSION.
  S  8.  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
THE  EXTENSION OF NATURAL GAS LINE INFRASTRUCTURE.  IN ORDER TO EFFECTU-
ATE 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 FRANCHISED BY THE
PUBLIC SERVICE COMMISSION IN CONNECTION WITH A NATURAL GAS  LINE  EXTEN-
SION  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 CONDI-
TIONS  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 LINE EXTENSION 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 LINE EXTENSION.
  S 9. 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-
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 10. This act shall take effect immediately.

Co-Sponsors

view additional co-sponsors

S5536B - Bill Details

See Assembly Version of this Bill:
A7900
Current Committee:
Law Section:
Public Service Law
Laws Affected:
Add §§27 & 18-d, Pub Serv L; add §143, Pub Bldg L; add §§485-r & 485-q, RPT L; amd §§1001 & 1010, add §1005-b, Pub Auth L

S5536B - Bill Texts

view summary

Enacts provisions to provide for and assist in the expansion of natural gas service in this state for environmental and economic benefit.

view sponsor memo
BILL NUMBER:S5536B

TITLE OF BILL: An act to amend the public service law, the public
buildings law, the real property tax law and the public authorities
law, in relation to expansion of natural gas service

PURPOSE OR GENERAL IDEA OF BILL: To provide incentives aimed at
encouraging the extension of existing gas lines to unserved and
under-served areas.

SUMMARY OF SPECIFIC PROVISIONS: Section 1. Legislative intent.

Section 2. This section requires the PSC to facilitate contacts with
state agencies and local governments with respect to review of permit
applications on expansion of natural gas lines.

Section 3. This section requires that 250 of the revenue generated by
the SBC surcharge to be allocated for the purpose of natural gas line
extensions.

Section 4. This section mandates that OGS undertake a study on
conversion to natural gas heating when a public building is subject to
a capital project which requires installation or replacement of a
boiler for heating. The study must also consider benefits to the
community from an extension of pipeline.

Section 5. This section provides a real property tax exemption at
local option to the extent of the increase in the assessed value
attributable to the construction of natural gas distribution
facilities. The length and percentage of the exemption is determined
by local law or resolution.

Section 6. This section creates a real property tax exemption in New
York City at local option for the construction of natural gas
facilities.

Sections 7, 8 and 9 amend the public authorities law with regard to
the New York Power Authority.

Section 10 is the effective date.

JUSTIFICATION: There are currently 555,000 households that lie within
100 feet or an existing gas distribution line, and 500,000 homes that
exist beyond a 100 feet of a line but within an existing natural gas
utility franchise. Many small businesses and other commercial
operations are in similar circumstances.

Natural gas prices are at an all time low, and access to natural gas
can save customers significant amounts annually. In addition, the
environmental benefits of natural gas are well documented, including
significant reductions in sulfur dioxide, nitrogen dioxide,
particulate matter and carbon dioxide.

Natural gas access is a strong tool for job creation, since the
reduced costs inherent to using gas to heat a building are a strong
incentive for a business to locate in an area that has that service.


This bill provides new incentives to facilitate extension of natural
gas lines to spur economic development, create jobs, and lower costs.
This policy is good for consumers, good for business and good for the
environment.

LEGISLATIVE HISTORY: This is a new bill

FISCAL IMPLICATIONS: To be determined

EFFECTIVE DATE: This act shall take effect immediately.

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

                                 5536--B

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              May 16, 2013
                               ___________

Introduced  by Sens. MAZIARZ, BALL, DeFRANCISCO, GRISANTI, LARKIN, PARK-
  ER, RITCHIE, SAMPSON -- read  twice  and  ordered  printed,  and  when
  printed  to  be  committed to the Committee on Energy and Telecommuni-
  cations -- committee discharged, bill amended,  ordered  reprinted  as
  amended  and  recommitted  to  said  committee  --  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 committee

AN ACT to amend the public service law, the public  buildings  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 and
declares that the extension of natural gas lines within  the  state  has
multiple  benefits  to  New  Yorkers, including a reduction in pollution
with the resultant health benefits, increased economic activity with the
creation of jobs through improved  energy  infrastructure,  energy  cost
savings to consumers, and improved energy efficiency.
  Natural  gas  is  the  cleanest burning fossil fuel. It has a positive
impact on the environment by cutting emissions  of  particulate  matter.
These  emissions  have  been  linked  to  heart  and lung conditions and
contribute to asthma rates, particularly in urban areas.
  Natural gas prices are at a low point and  will  result  in  increased
disposable  income for consumers and improved operational efficiency for
business. Extending the state's natural  gas  line  infrastructure  will
create a positive business environment for manufacturers and other busi-
nesses  that  are  looking  to stabilize their energy costs. Natural gas
line extensions will spur economic development in  the  business  sector
and create jobs.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11148-05-3

S. 5536--B                          2

  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.
  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  THROUGH  THE  EXTENSION  OF
EXISTING  GAS  LINES 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 ENVI-
RONMENTAL  CONSERVATION  LAW, IN CONNECTION WITH SUCH PERMIT APPLICATION
BY A GAS CORPORATION OR COMBINATION GAS AND ELECTRIC  CORPORATION  FRAN-
CHISED  UNDER THIS CHAPTER.  THE DEPARTMENTS OF TRANSPORTATION AND ENVI-
RONMENTAL CONSERVATION SHALL, TO THE MAXIMUM EXTENT FEASIBLE,  ESTABLISH
PROCEDURES TO EXPEDITE PERMIT APPLICATIONS IN CONNECTION WITH THE EXPAN-
SION OF NATURAL GAS SERVICE THROUGH THE EXTENSION OF EXISTING GAS LINES.
  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 ALLOCATE SUCH FUNDS TO GAS CORPORATIONS
AND COMBINATION GAS AND  ELECTRIC  CORPORATIONS  THROUGH  A  STAKEHOLDER
PROCESS  ESTABLISHED  BY  THE COMMISSION. SUCH STAKEHOLDER PROCESS SHALL
ESTABLISH RULES AND PROCEDURES FOR ALLOCATIONS PURSUANT TO THIS  SECTION
CONSISTENT WITH THE PUBLIC POLICY GOALS OF THE STATE.
  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 USING NATURAL GAS HEATING. SUCH STUDY SHALL CONSIDER
THE BENEFITS TO SURROUNDING COMMUNITIES IN THE EVENT THAT IT  IS  NECES-
SARY  TO  EXTEND A MAIN PIPELINE IN EXCESS OF ONE HUNDRED FEET TO OBTAIN
SUCH SERVICES.
  S 5. 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 EXISTING NATURAL GAS LINE  INFRASTRUCTURE  TO  NEW
CUSTOMERS  OF A GAS CORPORATION OR A COMBINATION GAS AND ELECTRIC CORPO-
RATION 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

S. 5536--B                          3

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
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
DISTRIBUTION FACILITIES.
  S  6.  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 DISTRIBUTION  FACILI-
TIES.  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 EXISTING NATURAL GAS LINE
INFRASTRUCTURE TO NEW CUSTOMERS OF A GAS CORPORATION  OR  A  COMBINATION
GAS AND ELECTRIC CORPORATION WITH THEIR CONSENT.
  2. (A) WITHIN A CITY HAVING A POPULATION OF ONE MILLION OR MORE, AFTER
A  PUBLIC  HEARING,  THE GOVERNING BODY OF SUCH A CITY MAY ADOPT A LOCAL
LAW OR RESOLUTION TO GRANT AN  EXEMPTION  AUTHORIZED  PURSUANT  TO  THIS
SECTION.  A COPY OF SUCH LOCAL LAW OR RESOLUTION SHALL BE FILED WITH THE
COMMISSIONER AND THE TAX ASSESSOR OF SUCH CITY WHO PREPARES THE  ASSESS-
MENT ROLL ON WHICH THE TAXES OF SUCH CITY ARE LEVIED.
  (B)  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
SHALL BE SET FORTH IN SUCH LOCAL LAW OR  RESOLUTION,  BUT  IN  NO  EVENT
SHALL IT EXCEED TEN YEARS.
  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
FROM THE PUBLIC SERVICE CORPORATION FOR CONSTRUCTION OF SUCH NATURAL GAS
DISTRIBUTION FACILITIES.
  S 7. 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 ECONOMIC BENEFITS
FROM THE EXTENSION OF NATURAL  GAS  LINE  INFRASTRUCTURE.    A  CRITICAL

S. 5536--B                          4

ELEMENT  OF  NATURAL  GAS  LINE  EXTENSIONS  IS  THE  FINANCING  OF  THE
CONSTRUCTION AND INVESTMENT NECESSARY FOR SUCH NATURAL GAS  LINE  EXTEN-
SIONS. THE AUTHORITY IS AUTHORIZED TO MAKE LOANS TO GAS CORPORATIONS AND
COMBINED  GAS  AND  ELECTRIC CORPORATIONS TO EFFECTUATE THE EXTENSION OF
EXISTING NATURAL GAS LINE INFRASTRUCTURE WHICH IS APPROVED BY THE PUBLIC
SERVICE COMMISSION.
  S 8. 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
THE EXTENSION OF NATURAL GAS LINE INFRASTRUCTURE.  IN ORDER TO  EFFECTU-
ATE  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 FRANCHISED BY THE
PUBLIC  SERVICE  COMMISSION IN CONNECTION WITH A NATURAL GAS LINE EXTEN-
SION 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 CONDI-
TIONS 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 LINE EXTENSION  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 LINE EXTENSION.
  S  9.  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-
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 10. This act shall take effect immediately.

Co-Sponsors

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S5536C (ACTIVE) - Bill Details

See Assembly Version of this Bill:
A7900
Current Committee:
Law Section:
Public Service Law
Laws Affected:
Add §§27 & 18-d, Pub Serv L; add §143, Pub Bldg L; add §§485-r & 485-q, RPT L; amd §§1001 & 1010, add §1005-b, Pub Auth L

S5536C (ACTIVE) - Bill Texts

view summary

Enacts provisions to provide for and assist in the expansion of natural gas service in this state for environmental and economic benefit.

view sponsor memo
BILL NUMBER:S5536C

TITLE OF BILL: An act to amend the public service law, the public
buildings law, the real property tax law and the public authorities
law, in relation to expansion of natural gas service

PURPOSE OR GENERAL IDEA OF BILL:

To provide incentives aimed at encouraging the extension of existing
gas lines to unserved and under-served areas.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1. Legislative intent.

Section 2. This section requires the PSC to facilitate contacts with
state agencies and local governments with respect to review of permit
applications on expansion of natural gas lines.

Section 3. This section requires that 250 of the revenue generated by
the SBC surcharge to be allocated for the purpose of natural gas line
extensions.

Section 4. This section mandates that OGS undertake a study on
conversion to natural gas heating when a public building is subject to
a capital project which requires installation or replacement of a
boiler for heating. The study must also consider benefits to the
community from an extension of pipeline.

Section 5. This section provides a real property tax exemption at
local option to the extent of the increase in the assessed value
attributable to the construction of natural gas distribution
facilities. The length and percentage of the exemption is determined
by local law or resolution.

Section 6. This section creates a real property tax exemption in New
York City at local option for the construction of natural gas
facilities.

Sections 7, 6 and 9 amend the public authorities law with regard to
the New York Power Authority.

Section 10 is the effective date.

JUSTIFICATION:

There are currently 555,000 households that lie within 100 feet or an
existing gas distribution line, and 500,000 homes that exist beyond a
100 feet of e line but within an existing natural gas utility
franchise- Many small businesses and other commercial operations are
in similar circumstances.

Natural gas prices are at an all time low, and access to natural gas
can save customers significant amounts annually. In addition, the
environmental benefits of natural gas are well documented, including
significant reductions in sulfur dioxide, nitrogen dioxide,
particulate matter and carbon dioxide.


Natural gas access is a strong tool for job creation, since the
reduced costs inherent to using gas to heat a building are a strong
incentive for a business to locate in an area that has that service.

This bill provides new incentives to facilitate extension of natural
gas lines to spur economic development, create jobs, and lower costs.
This policy is good for consumers, good for business and good for the
environment.

LEGISLATIVE HISTORY:

This is a new bill

FISCAL IMPLICATIONS:

To be determined

EFFECTIVE DATE:

This act shall take effect immediately.

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

                                 5536--C

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              May 16, 2013
                               ___________

Introduced  by Sens. MAZIARZ, BALL, DeFRANCISCO, GRISANTI, LARKIN, PARK-
  ER, RITCHIE, SAMPSON -- read  twice  and  ordered  printed,  and  when
  printed  to  be  committed to the Committee on Energy and Telecommuni-
  cations -- committee discharged, bill amended,  ordered  reprinted  as
  amended  and  recommitted  to  said  committee  --  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  committee  --  committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN  ACT  to  amend the public service law, the public buildings 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  and
declares that the extension of natural gas distribution lines within the
state  has  multiple  benefits  to New Yorkers, including a reduction in
emissions with the resultant health benefits, increased economic  activ-
ity  with  the  creation of jobs through improved energy infrastructure,
energy cost savings to consumers, and improved energy efficiency.
  Natural gas is the cleanest burning fossil fuel.  It  has  a  positive
impact  on  the  environment by cutting emissions of particulate matter.
These emissions have been  linked  to  heart  and  lung  conditions  and
contribute to asthma rates, particularly in urban areas.
  Natural  gas  prices  are  at a low point and will result in increased
disposable income for consumers and improved operational efficiency  for
business.  Extending  the  state's natural gas distribution line infras-
tructure will create a positive business environment  for  manufacturers
and  other  businesses that are looking to stabilize their energy costs.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11148-07-4

S. 5536--C                          2

Natural gas distribution line extensions will spur economic  development
in the business sector and create jobs.
  This  legislation  will  have  the  effect  of  protecting the state's
natural resources, including protecting its  atmosphere,  while  at  the
same time stimulating the development of new jobs and the economy.
  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  DISTRIBUTION  SERVICE  THROUGH  THE
EXTENSION OF EXISTING NATURAL GAS DISTRIBUTION LINES 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 COMMISSION MAY ACT AS LEAD AGENCY PURSUANT TO ARTI-
CLE EIGHT OF THE ENVIRONMENTAL CONSERVATION LAW, IN CONNECTION WITH SUCH
PERMIT APPLICATION BY A GAS CORPORATION OR COMBINATION GAS AND  ELECTRIC
CORPORATION FRANCHISED UNDER THIS CHAPTER.  THE DEPARTMENTS OF TRANSPOR-
TATION  AND  ENVIRONMENTAL  CONSERVATION  SHALL,  TO  THE MAXIMUM EXTENT
FEASIBLE,  ESTABLISH  PROCEDURES  TO  EXPEDITE  PERMIT  APPLICATIONS  IN
CONNECTION  WITH  THE  EXPANSION  OF  NATURAL  GAS  DISTRIBUTION SERVICE
THROUGH THE EXTENSION OF EXISTING NATURAL GAS DISTRIBUTION LINES.
  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 FIFTEEN, 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 DISTRIB-
UTION  FACILITIES.  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 ALLOCATE SUCH FUNDS TO GAS CORPO-
RATIONS AND COMBINATION GAS AND ELECTRIC CORPORATIONS THROUGH  A  STAKE-
HOLDER  PROCESS  ESTABLISHED BY THE COMMISSION. SUCH STAKEHOLDER PROCESS
SHALL ESTABLISH RULES AND PROCEDURES FOR ALLOCATIONS  PURSUANT  TO  THIS
SECTION CONSISTENT WITH THE PUBLIC POLICY GOALS OF THE STATE.
  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 USING NATURAL GAS HEATING. SUCH STUDY SHALL CONSIDER
THE BENEFITS TO SURROUNDING COMMUNITIES IN THE EVENT THAT IT  IS  NECES-
SARY TO EXTEND A MAIN NATURAL GAS DISTRIBUTION PIPELINE IN EXCESS OF ONE
HUNDRED FEET TO OBTAIN SUCH SERVICES.
  S  5.  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 EXISTING NATURAL GAS DISTRIBUTION LINE INFRASTRUC-
TURE  TO  NEW  CUSTOMERS  OF  A GAS CORPORATION OR A COMBINATION GAS AND
ELECTRIC CORPORATION WITH THEIR CONSENT.

S. 5536--C                          3

  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 DISTRIBUTION FACILITIES. THE LENGTH OF
SUCH EXEMPTION AND THE PERCENTAGE  OF  ASSESSED  VALUATION  EXEMPT  FROM
TAXATION  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
DISTRIBUTION FACILITIES.
  S 6. 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 DISTRIBUTION FACILI-
TIES. 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  EXISTING  NATURAL  GAS
DISTRIBUTION  LINE  INFRASTRUCTURE TO NEW CUSTOMERS OF A GAS CORPORATION
OR A COMBINATION GAS AND ELECTRIC CORPORATION WITH THEIR CONSENT.
  2. (A) WITHIN A CITY HAVING A POPULATION OF ONE MILLION OR MORE, AFTER
A PUBLIC HEARING, THE GOVERNING BODY OF SUCH A CITY MAY  ADOPT  A  LOCAL
LAW  OR  RESOLUTION  TO  GRANT  AN EXEMPTION AUTHORIZED PURSUANT TO THIS
SECTION. A COPY OF SUCH LOCAL LAW OR RESOLUTION SHALL BE FILED WITH  THE
COMMISSIONER  AND THE TAX ASSESSOR OF SUCH CITY WHO PREPARES THE ASSESS-
MENT ROLL ON WHICH THE TAXES OF SUCH CITY ARE LEVIED.
  (B) 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 DISTRIBUTION FACILITIES. THE LENGTH OF
SUCH EXEMPTION AND THE PERCENTAGE  OF  ASSESSED  VALUATION  EXEMPT  FROM
TAXATION  SHALL  BE SET FORTH IN SUCH LOCAL LAW OR RESOLUTION, BUT IN NO
EVENT SHALL IT EXCEED TEN YEARS.
  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
FROM THE PUBLIC SERVICE CORPORATION FOR CONSTRUCTION OF SUCH NATURAL GAS
DISTRIBUTION FACILITIES.
  S 7. Section 1001 of the public authorities law is amended by adding a
new undesignated paragraph to read as follows:

S. 5536--C                          4

  IT IS FURTHER DECLARED THAT THERE ARE  SIGNIFICANT  ECONOMIC  BENEFITS
FROM  THE  EXTENSION OF NATURAL GAS DISTRIBUTION LINE INFRASTRUCTURE.  A
CRITICAL ELEMENT OF NATURAL GAS  DISTRIBUTION  LINE  EXTENSIONS  IS  THE
FINANCING  OF THE CONSTRUCTION AND INVESTMENT NECESSARY FOR SUCH NATURAL
GAS  DISTRIBUTION  LINE  EXTENSIONS. THE AUTHORITY IS AUTHORIZED TO MAKE
LOANS TO GAS CORPORATIONS AND COMBINED GAS AND ELECTRIC CORPORATIONS  TO
EFFECTUATE  THE  EXTENSION  OF  EXISTING  NATURAL  GAS DISTRIBUTION LINE
INFRASTRUCTURE WHICH IS APPROVED BY THE PUBLIC SERVICE COMMISSION.
  S 8. 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
THE EXTENSION OF NATURAL GAS DISTRIBUTION LINE INFRASTRUCTURE.  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  FRANCHISED
BY  THE  PUBLIC  SERVICE  COMMISSION  IN  CONNECTION  WITH A NATURAL GAS
DISTRIBUTION LINE EXTENSION  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 INSTRU-
MENTS, 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 DISTRIB-
UTION LINE EXTENSION 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  INSTRU-
MENT,  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 INSTRU-
MENTS NECESSARY AND DESIRABLE IN  CONNECTION  THEREWITH.  IN  CONNECTION
WITH THE EXTENSION OF ANY SUCH CREDIT OR LOAN, THE AUTHORITY MAY FIX AND
COLLECT  SUCH  FEES AND CHARGES, INCLUDING BUT NOT LIMITED TO REIMBURSE-
MENT OF ALL COSTS OF FINANCING BY THE CORPORATION AS  SHALL  BE  REASON-
ABLE.  IN  CONNECTION  WITH SUCH EXTENSION OF CREDIT OR LOAN AS PROVIDED
FOR HEREIN SUCH GAS CORPORATION OR A COMBINED GAS  AND  ELECTRIC  CORPO-
RATION SHALL SUBMIT TO THE AUTHORITY AN APPLICATION FOR THE EXTENSION 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 DISTRIBUTION LINE EXTENSION.
  S 9. 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-
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 10. This act shall take effect immediately.

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