senate Bill S5583A

2013-2014 Legislative Session

Authorizes unallocated power to be used in connection with the St. Lawrence river valley economic development fund

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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
Feb 10, 2014 reported and committed to finance
Jan 08, 2014 referred to energy and telecommunications
Jun 04, 2013 print number 5583a
amend and recommit to finance
Jun 04, 2013 reported and committed to finance
May 22, 2013 referred to energy and telecommunications

Votes

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Feb 10, 2014 - Energy and Telecommunications committee Vote

S5583A
10
0
committee
10
Aye
0
Nay
0
Aye with Reservations
0
Absent
0
Excused
0
Abstained
show Energy and Telecommunications committee vote details

Energy and Telecommunications Committee Vote: Feb 10, 2014

Jun 4, 2013 - Energy and Telecommunications committee Vote

S5583
11
0
committee
11
Aye
0
Nay
0
Aye with Reservations
0
Absent
0
Excused
0
Abstained
show committee vote details

Committee Vote: Jun 4, 2013

Bill Amendments

Original
A (Active)
Original
A (Active)

Co-Sponsors

S5583 - Bill Details

Current Committee:
Law Section:
Public Authorities Law
Laws Affected:
Amd §1005, Pub Auth L

S5583 - Bill Texts

view summary

Authorizes unallocated power to be used in connection with the St. Lawrence river valley economic development fund.

view sponsor memo
BILL NUMBER:S5583

TITLE OF BILL: An act to amend the public authorities law, in
relation to authorizing unallocated power to be used for the specified
purposes

PURPOSE: This legislation would authorize the allocation of up to
twenty megawatts of power from the Saint Lawrence-FDR project to be
used for the purposes of the St. Lawrence River Valley Economic
Development Fund.

SUMMARY OF PROVISIONS:

Section 1 provides that Section 1005 of the Public Authorities Law is
amended by adding four undesignated paragraphs to be the thirteenth,
fourteenth, fifteenth and sixteenth undersigned paragraphs of the
section.

Undesignated paragraph thirteen provides that up to twenty megawatts
of power from the Saint Lawrence-FDR project can be sold in the
wholesale market with the net earnings to be used for the purposes of
the St. Lawrence River Valley Economic Development Fund. This
paragraph also establishes the agency or agencies that shall
administer the fund.

Undesignated paragraph fourteen provides the criteria for evaluating
the applications seeking, to receive awards from the Saint Lawrence
River Valley Economic Development Fund.

Undesignated paragraph fifteen provides that the RVRDA Advisory Group,
as defined in undesignated paragraph thirteen, shall evaluate the
applications and make recommendations to the New York State Power
Authority for awards and the terms and conditions of such awards.

Undesignated paragraph sixteen provides that the transfer of benefits
is prohibited unless specifically approved by the RVRDA Advisory
Group.

Section 2 amends the opening paragraph of Subdivision 13 of section
1005 of the Public Authorities Law so that it is consistent with the
new undesignated paragraphs that are added to Section 1005 of the
Public Authorities Law in Section 1 of this bill.

Section 3 provides that this act shall take effect immediately.

JUSTIFICATION: In Western New York a program has been in place to
allow for the monetization of certain power resources for the benefit
of the host communities. But, a program allowing for the monetization
of certain power resources in Northern New York has not been
established. This legislation creates a program that will allow for
the monetization of up to twenty megawatts of unallocated power to be
used for the purposes of the Saint Lawrence County Economic
Development Fund.

LEGISLATIVE HISTORY: New Bill.

FISCAL IMPLICATIONS: Minimal.


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
________________________________________________________________________

                                  5583

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              May 22, 2013
                               ___________

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

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

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

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

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

S. 5583                             2

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

S. 5583                             3

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

S. 5583                             4

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

Co-Sponsors

S5583A (ACTIVE) - Bill Details

Current Committee:
Law Section:
Public Authorities Law
Laws Affected:
Amd §1005, Pub Auth L

S5583A (ACTIVE) - Bill Texts

view summary

Authorizes unallocated power to be used in connection with the St. Lawrence river valley economic development fund.

view sponsor memo
BILL NUMBER:S5583A

TITLE OF BILL: An act to amend the public authorities law, in
relation to authorizing unallocated power to be used for the specified
purposes

PURPOSE: This legislation would authorize the allocation of up to
twenty megawatts of power from the Saint Lawrence-FDR project to be
used for the purposes of the St. Lawrence River Valley Economic
Development Fund.

SUMMARY OF PROVISIONS:

Section 1 provides that Section 1005 of the Public Authorities Law is
amended by adding four undesignated paragraphs to be the thirteenth,
fourteenth, fifteenth and sixteenth undersigned paragraphs of the
section.

Undesignated paragraph thirteen provides that up to twenty megawatts
of power from the Saint Lawrence-FDR project can be sold in the
wholesale market with the net earnings to be used for the purposes of
the St. Lawrence River Valley Economic Development Fund. This
paragraph also establishes the agency or agencies that shall
administer the fund.

Undesignated paragraph fourteen provides the criteria for evaluating
the applications seeking to receive awards from the Saint Lawrence
River Valley Economic Development Fund.

Undesignated paragraph fifteen provides that the RVRDA Advisory Group,
as defined in undesignated paragraph thirteen, shall evaluate the
applications and make recommendations to the New York State Power
Authority for awards and the terms and conditions of such awards.

Undesignated paragraph sixteen provides that the transfer of benefits
is prohibited unless specifically approved by the RVRDA Advisory
Group,

Section 2 amends the opening paragraph of Subdivision 13 of section
1005 of the Public Authorities Law so that it is consistent with the
new undesignated paragraphs that are added to Section 1005 of the
Public Authorities Law in Section 1 of this bill.

Section 3 provides that this act shall take effect immediately.

JUSTIFICATION: In Western New York a program has been in place to
allow for the monetization of certain power resources for the benefit
of the host communities. But, a program allowing for the monetization
of certain power resources in Northern New York has not been
established. This legislation creates a program that will allow for
the monetization of up to twenty megawatts of unallocated power to be
used for the purposes of the Saint Lawrence County Economic
Development Fund.

LEGISLATIVE HISTORY: New Bill.

FISCAL IMPLICATIONS: Minimal.


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
________________________________________________________________________

                                 5583--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              May 22, 2013
                               ___________

Introduced  by  Sens. RITCHIE, GRIFFO -- read twice and ordered printed,
  and when printed to be committed to the Committee on Energy and  Tele-
  communications -- reported favorably from said committee and committed
  to  the  Committee  on  Finance -- committee discharged, bill amended,
  ordered reprinted as amended and recommitted to said committee

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

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

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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11041-02-3

S. 5583--A                          2

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

S. 5583--A                          3

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

S. 5583--A                          4

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

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