senate Bill S5887

2013-2014 Legislative Session

Enacts the northern New York power proceeds allocation act

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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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Senate Actions - UPPERCASE
Jan 08, 2014 referred to energy and telecommunications
Jun 19, 2013 referred to rules

S5887 - Bill Details

Current Committee:
Senate Energy And Telecommunications
Law Section:
Economic Development Law
Laws Affected:
Add Art 6-B §§189-e - 189-h, Ec Dev L; amd §1005, Pub Auth L

S5887 - Bill Texts

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Enacts the northern New York power proceeds allocation act; establishes the northern New York power proceeds allocation board to allocate preservation power net earnings and development power net earnings for eligible preservation power projects and eligible development power projects.

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BILL NUMBER:S5887

TITLE OF BILL: An act to amend the economic development law and the
public authorities law, in relation to enacting the northern New York
power proceeds allocation act

PURPOSE: This legislation creates the northern New York power proceeds
allocation board to make recommendations for the allocation of fund
benefits or recommendations to the power authority of the State of New
York for the allocation of development or preservation power from the
Saint Lawrence-FDR project to be used for economic development
purposes.

SUMMARY OF PROVISIONS:

Section 1 of the bill is the short title "northern New York power
proceeds allocation act."

Section 2 of the bill amends economic development law to create a new
Article 6-B to be known as the "northern New York power proceeds
allocation act." Section 189-e, provides definitions for purposes of
this article, including defining "benefits" or "fund benefits" to be
payments to eligible applicants selected by the authority for the
funding of development power projects with monies derived from net
earnings that have deposited into the northern new York economic
development fund.

Defines "eligible development power projects" in the case of projects
receiving an allocation of development power net earnings to be
economic development projects located in St. Lawrence County or in the
case of projects receiving an allocation of preservation power net
earnings, to be those in St. Lawrence, Jefferson or Franklin Counties.

Defines "Development power" to be the unallocated portion of 20 MW of
firm Saint Lawrence-FDR hydroelectric power. Defines "preservation
power net earnings" to be the aggregate excess of revenues from the
sale of up to 10 MW of preservation power and energy produced at the
St. Lawrence-FDR project over the revenues that would have been
received had such energy been sold on a firm basis to an eligible
preservation power customer.

Establishes a "Northern New York Economic Development Fund" into which
all development and preservation power net earnings are to be
deposited into.

Section 189-f establishes the powers and duties of the board to
consist of five members three of which shall be appointed upon the
recommendation of the governor as follows: one of whom shall be
appointed by the temporary president of the senate and one of whom
shall be appointed upon the recommendation of the speaker of the
assembly. Specifies that at least three of the members shall reside in
the towns of Lisbon, Louisville, Massena, or Waddington provided that
all of the members shall reside in St. Lawrence County and the
governor shall designate a chair from amongst the board's members.

Specifies that the board shall recommend to NYPA the allocation of
fund benefits or power allocations to eligible power projects that the


board finds are consistent with the applicable criteria provided
however, development power and preservation power proceeds equaling
seventy percent of available monetized power shall annually be
allocated to eligible applicants jointly recommended pursuant to a
vote of the St. Lawrence River Valley Redevelopment Agency and the
Saint Lawrence County Industrial Development Agency Local Development
Corporation; provided further that development power proceeds equaling
thirty percent of available monetized development power shall annually
be allocated for the purposes of providing state matches if necessary
for funding the design, development, construction and other costs
associated with a highway transportation capacity expansion project
located in the county of St. Lawrence, for the purpose of creating an
expressway that would not be an interstate but mostly a four lane
road.

Section 189-h provides for the establishment of rules and regulations
necessary to carry out the purposes of the act.

Section 3 of the bill amends Section 1005 of the Public Authorities
Law is by adding five new subdivisions 24, 25, 26, 27, and 28 which
among other things, requires a an annual report to be prepared that
provides an accounting of (a) the amount of development power and
preservation power sold into the wholesale market by the authority,
and (b) the development power and preservation power net earnings paid
into the northern New York economic development fund.

Section 4 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 unallocated power to be used for the purposes of
the Northern New York 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
________________________________________________________________________

                                  5887

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              June 19, 2013
                               ___________

Introduced  by  Sen. RITCHIE -- read twice and ordered printed, and when
  printed to be committed to the Committee on Rules

AN ACT to amend the economic development law and the public  authorities
  law,  in  relation  to  enacting  the northern New York power proceeds
  allocation act

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

  Section  1.  Short  title. This act shall be known and may be cited as
the "northern New York power proceeds allocation act".
  S 2. The economic development law is amended by adding a  new  article
6-B to read as follows:
                               ARTICLE 6-B
             NORTHERN NEW YORK POWER PROCEEDS ALLOCATION ACT
SECTION 189-E. DEFINITIONS.
        189-F. THE NORTHERN NEW YORK POWER PROCEEDS ALLOCATION BOARD.
        189-G. GENERAL POWERS AND DUTIES OF THE BOARD.
        189-H. RULES AND REGULATIONS.
  S  189-E. DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE, THE FOLLOWING
TERMS SHALL HAVE THE FOLLOWING MEANINGS:
  1. "AUTHORITY" IS THE POWER AUTHORITY OF THE STATE OF NEW YORK.
  2. "BOARD" IS THE NORTHERN NEW YORK POWER  PROCEEDS  ALLOCATION  BOARD
CREATED BY THIS ARTICLE.
  3.  "BENEFITS"  OR "FUND BENEFITS" ARE PAYMENTS TO ELIGIBLE APPLICANTS
SELECTED BY THE AUTHORITY FOR THE PURPOSE OF FUNDING  ELIGIBLE  DEVELOP-
MENT POWER PROJECTS WITH MONIES DERIVED FROM NET EARNINGS THAT HAVE BEEN
DEPOSITED INTO THE NORTHERN NEW YORK ECONOMIC DEVELOPMENT FUND.
  4.   "ELIGIBLE  APPLICANT"  MEANS  A  PRIVATE  BUSINESS,  INCLUDING  A
NOT-FOR-PROFIT CORPORATION WITH THE EXCEPTION OF  QUALIFIED  TRANSPORTA-
TION  CAPACITY EXPANSION PROJECTS WHERE A PUBLIC ENTITY MAY BE AN ELIGI-
BLE APPLICANT.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11545-01-3

S. 5887                             2

  5. "ELIGIBLE DEVELOPMENT  POWER  PROJECTS"  ARE  ECONOMIC  DEVELOPMENT
PROJECTS  BY  ELIGIBLE APPLICANTS THAT IN THE CASE OF PROJECTS RECEIVING
AN ALLOCATION OF DEVELOPMENT POWER NET EARNINGS ARE  PHYSICALLY  LOCATED
WITHIN  THE STATE OF NEW YORK WITHIN ST. LAWRENCE COUNTY, OR IN THE CASE
OF  PROJECTS  RECEIVING AN ALLOCATION OF PRESERVATION POWER NET EARNINGS
ARE PHYSICALLY LOCATED WITHIN THE STATE OF NEW YORK WITHIN ST. LAWRENCE,
JEFFERSON OR FRANKLIN COUNTIES, THAT WILL SUPPORT THE GROWTH OF BUSINESS
IN THE STATE AND THEREBY LEAD TO THE CREATION OR MAINTENANCE OF JOBS AND
TAX REVENUES FOR THE STATE AND LOCAL GOVERNMENTS.  ELIGIBLE  DEVELOPMENT
POWER  PROJECTS MAY INCLUDE CAPITAL INVESTMENTS IN BUILDINGS, EQUIPMENT,
AND ASSOCIATED INFRASTRUCTURE (COLLECTIVELY, "INFRASTRUCTURE") OWNED  BY
AN  ELIGIBLE  APPLICANT FOR FUND BENEFITS; TRANSPORTATION PROJECTS UNDER
STATE OR FEDERALLY APPROVED PLANS; THE ACQUISITION OF  LAND  NEEDED  FOR
INFRASTRUCTURE;  RESEARCH  AND  DEVELOPMENT  WHERE  THE  RESULTS OF SUCH
RESEARCH AND DEVELOPMENT WILL DIRECTLY BENEFIT NEW YORK  STATE;  SUPPORT
FOR  TOURISM AND MARKETING AND ADVERTISING EFFORTS FOR NORTHERN NEW YORK
STATE TOURISM  AND  BUSINESS;  ENERGY-RELATED  PROJECTS;  ELECTRIC  RATE
RELIEF  PROGRAMS  FOR AGRICULTURAL CUSTOMERS; AND WATERFRONT REVITALIZA-
TION PROJECTS. ELIGIBLE DEVELOPMENT POWER PROJECTS DO NOT  INCLUDE,  AND
FUND  BENEFITS MAY NOT BE USED FOR, PUBLIC INTEREST ADVERTISING OR ADVO-
CACY; LOBBYING; THE SUPPORT OR OPPOSITION OF ANY  CANDIDATE  FOR  PUBLIC
OFFICE;  THE  SUPPORT  OR  OPPOSITION  TO  ANY  PUBLIC ISSUE; LEGAL FEES
RELATED TO LITIGATION OF ANY KIND; EXPENSES  RELATED  TO  ADMINISTRATIVE
PROCEEDINGS  BEFORE  STATE  OR  LOCAL  AGENCIES; OR RETAIL BUSINESSES AS
DEFINED BY THE  BOARD,  INCLUDING  WITHOUT  LIMITATION,  SPORTS  VENUES,
GAMING AND GAMBLING OR ENTERTAINMENT-RELATED ESTABLISHMENTS, RESIDENTIAL
PROPERTIES, OR PLACES OF OVERNIGHT ACCOMMODATION.
  6.  "ENERGY-RELATED  PROJECTS,  PROGRAMS  AND SERVICES" SHALL HAVE THE
SAME MEANING AS SUCH TERM IS DEFINED IN SUBPARAGRAPH  TWO  OF  PARAGRAPH
(B)  OF SUBDIVISION SEVENTEEN OF SECTION ONE THOUSAND FIVE OF THE PUBLIC
AUTHORITIES LAW.
  7.  "DEVELOPMENT  POWER"  IS  THE  TWENTY  MEGAWATTS  OF  FIRM   SAINT
LAWRENCE-FDR  PROJECT  HYDROELECTRIC  POWER  AS  APPORTIONED PURSUANT TO
SUBDIVISION THIRTEEN OF SECTION ONE THOUSAND FIVE OF THE PUBLIC AUTHORI-
TIES LAW. FOR THE PURPOSES OF THIS ARTICLE,  "DEVELOPMENT  POWER"  MEANS
THE ENERGY ASSOCIATED WITH SUCH POWER.
  8.  "DEVELOPMENT POWER NET EARNINGS" IS THE AGGREGATE EXCESS OF REVEN-
UES RECEIVED BY THE AUTHORITY FROM THE SALE  OF  DEVELOPMENT  POWER  AND
ENERGY  PRODUCED  AT THE SAINT LAWRENCE-FDR PROJECT THAT WAS SOLD IN THE
WHOLESALE ENERGY MARKET OVER WHAT REVENUES WOULD HAVE BEEN RECEIVED  HAD
SUCH  ENERGY  BEEN SOLD ON A FIRM BASIS TO AN ELIGIBLE DEVELOPMENT POWER
CUSTOMER UNDER THE APPLICABLE TARIFF OR CONTRACT.
  9. "PRESERVATION POWER" IS THE FOUR HUNDRED NINETY MEGAWATTS  OF  FIRM
SAINT  LAWRENCE-FDR  PROJECT HYDROELECTRIC POWER AS SUCH TERM IS DEFINED
IN SUBDIVISION THIRTEEN OF SECTION  ONE  THOUSAND  FIVE  OF  THE  PUBLIC
AUTHORITIES  LAW.  FOR  PURPOSES  OF  THIS ARTICLE, "PRESERVATION POWER"
MEANS THE ENERGY ASSOCIATED WITH SUCH POWER.
  10. "PRESERVATION POWER NET  EARNINGS"  IS  THE  AGGREGATE  EXCESS  OF
REVENUES  RECEIVED  BY THE AUTHORITY FROM THE SALE OF PRESERVATION POWER
AND ENERGY PRODUCED AT THE SAINT LAWRENCE-FDR PROJECT THAT WAS  SOLD  IN
THE  WHOLESALE ENERGY MARKET OVER WHAT REVENUES WOULD HAVE BEEN RECEIVED
HAD SUCH ENERGY BEEN SOLD ON A FIRM BASIS TO  AN  ELIGIBLE  PRESERVATION
POWER CUSTOMER UNDER THE APPLICABLE TARIFF OR CONTRACT.
  11.  "NORTHERN NEW YORK ECONOMIC DEVELOPMENT FUND" OR "FUND" IS A FUND
OF THE AUTHORITY INTO WHICH ALL DEVELOPMENT AND PRESERVATION  POWER  NET
EARNINGS  ARE  DEPOSITED BY THE AUTHORITY IN ACCORDANCE WITH SUBDIVISION

S. 5887                             3

TWENTY-FIVE OF SECTION ONE THOUSAND FIVE OF THE PUBLIC  AUTHORITIES  LAW
AND  FROM WHICH ALLOCATIONS OF FUND BENEFITS TO ELIGIBLE PROJECTS MAY BE
MADE. THE AUTHORITY SHALL, WITHIN THE FUND, SEPARATELY ACCOUNT  FOR  AND
MAKE ALLOCATIONS FROM DEVELOPMENT AND PRESERVATION POWER NET EARNINGS.
  12.  "SAINT  LAWRENCE RIVER VALLEY REDEVELOPMENT AGENCY" IS THE ACTIVE
PARTNERSHIP OF THE COUNTY OF ST.  LAWRENCE  AND  THE  TOWNS  OF  LISBON,
LOUISVILLE,  MASSENA AND WADDINGTON ESTABLISHED FOR THE PURPOSE OF FUND-
ING ECONOMIC DEVELOPMENT PROJECTS  WITH  THE  FUNDS  RECEIVED  FROM  THE
NORTHERN  NEW  YORK  POWER  PROCEEDS  BOARD FROM THE SALE OF UNALLOCATED
DEVELOPMENT POWER OR UNALLOCATED PRESERVATION POWER.
  S 189-F. THE NORTHERN NEW YORK POWER  PROCEEDS  ALLOCATION  BOARD.  1.
THERE  IS HEREBY CREATED THE NORTHERN NEW YORK POWER PROCEEDS ALLOCATION
BOARD, WHICH SHALL POSSESS THE POWERS AND DUTIES HEREIN  SPECIFIED.  THE
BOARD SHALL CONSIST OF FIVE MEMBERS WHO SHALL BE APPOINTED BY THE GOVER-
NOR  AS  FOLLOWS: ONE OF WHOM SHALL BE APPOINTED BY THE TEMPORARY PRESI-
DENT OF THE SENATE AND ONE OF WHOM SHALL BE APPOINTED BY THE SPEAKER  OF
THE  ASSEMBLY. AT LEAST THREE OF THE MEMBERS SHALL RESIDE IN THE TOWN OF
LISBON, LOUISVILLE, MASSENA, OR WADDINGTON  PROVIDED  THAT  ALL  OF  THE
MEMBERS  SHALL  RESIDE IN THE COUNTY OF ST. LAWRENCE. THE GOVERNOR SHALL
DESIGNATE A CHAIR FROM AMONGST THE BOARD'S MEMBERS.
  2. EACH MEMBER SHALL SERVE A TERM OF FIVE YEARS OR UNTIL  A  SUCCESSOR
SHALL  HAVE  BEEN  NAMED  AND  QUALIFIED.  MEMBERS MAY BE REAPPOINTED TO
SUCCESSIVE TERMS.
  3. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE  CONTRARY,  THREE
MEMBERS  SHALL  CONSTITUTE  A  QUORUM FOR THE PURPOSES OF ORGANIZING THE
BOARD AND CONDUCTING THE BUSINESS THEREOF. NO ACTION OF THE BOARD MAY BE
TAKEN EXCEPT UPON AN AFFIRMATIVE VOTE OF AT LEAST  THREE-FIFTHS  OF  THE
FULL BOARD MEMBERSHIP AT ANY MEETING AT WHICH AT LEAST THREE MEMBERS ARE
PRESENT OR PARTICIPATING BY VIDEOCONFERENCING.  VIDEOCONFERENCING MAY BE
USED FOR ATTENDANCE AND PARTICIPATION BY MEMBERS OF THE BOARD. IF VIDEO-
CONFERENCING  IS  USED,  THE  BOARD SHALL PROVIDE AN OPPORTUNITY FOR THE
PUBLIC TO ATTEND, LISTEN AND OBSERVE AT  ANY  SITE  AT  WHICH  A  MEMBER
PARTICIPATES. THE PUBLIC NOTICE FOR THE MEETING SHALL IDENTIFY, IF PRAC-
TICABLE, ALL LOCATIONS WHERE A MEMBER WILL PARTICIPATE IN THE MEETING BY
VIDEOCONFERENCE  AND SHALL STATE THAT THE PUBLIC HAS THE RIGHT TO ATTEND
THE MEETING AT ANY SUCH LOCATION.
  4. MEMBERS OF THE BOARD, EXCEPT THOSE THAT ARE EMPLOYEES  OR  OFFICERS
OF THE STATE, ITS AUTHORITIES OR AGENCIES, SHALL NOT RECEIVE A SALARY OR
OTHER  COMPENSATION,  BUT  SHALL  BE  ALLOWED  THE  NECESSARY AND ACTUAL
EXPENSES INCURRED IN THE PERFORMANCE OF DUTIES UNDER THIS ARTICLE.
  S 189-G. GENERAL POWERS AND DUTIES OF THE BOARD. 1.  THE  BOARD  SHALL
ESTABLISH  PROCEDURES  AND  GUIDELINES RELATING TO THE ACTIVITIES OF THE
BOARD.
  2. THE BOARD SHALL ESTABLISH PROCEDURES THROUGH  WRITTEN  POLICIES  OR
STANDARDS  FOR REVIEWING APPLICATIONS FOR AN ALLOCATION OF FUND BENEFITS
OR A RECOMMENDATION TO THE AUTHORITY FOR AN ALLOCATION OF DEVELOPMENT OR
PRESERVATION POWER THAT SHALL INCLUDE A REVIEW OF APPLICATIONS  NO  LESS
FREQUENTLY  THAN  TWICE  EACH YEAR. THE BOARD, OR A MEMBER DESIGNATED BY
THE BOARD, SHALL RECEIVE ALL APPLICATIONS FROM, OR ON BEHALF OF,  ELIGI-
BLE  APPLICANTS  FOR  FUND BENEFITS. APPLICATIONS SHALL BE IN A FORM AND
CONTAIN SUCH INFORMATION, DATA AND EXHIBITS AS THE BOARD,  IN  CONSULTA-
TION WITH THE AUTHORITY, MAY PRESCRIBE.
  3.  THE BOARD MAY REQUEST FROM THE AUTHORITY AN ANALYSIS OF ANY APPLI-
CATION ALONG WITH ANY RECOMMENDATIONS. IN ADDITION, THE AUTHORITY  SHALL
SUPPLY  ANY  SUCH  ADDITIONAL INFORMATION AS IS REASONABLY NECESSARY FOR
THE BOARD TO PERFORM ITS DUTIES.

S. 5887                             4

  4. IN REVIEWING APPLICATIONS FOR FUND BENEFITS, THE BOARD SHALL EVALU-
ATE  ELIGIBLE  DEVELOPMENT  POWER  OR  PRESERVATION  POWER  PROJECTS  AS
PROVIDED  IN  SECTION  ONE  THOUSAND FIVE OF THE PUBLIC AUTHORITIES LAW.
THE BOARD SHALL ISSUE A WRITTEN STATEMENT OF ITS FINDINGS AND  RECOMMEN-
DATIONS FOR EACH APPLICATION REVIEWED.
  5.  THE  BOARD SHALL RECOMMEND TO THE AUTHORITY THE ALLOCATION OF FUND
BENEFITS OR POWER ALLOCATIONS TO ELIGIBLE POWER PROJECTS THAT THE  BOARD
FINDS ARE CONSISTENT WITH THE APPLICABLE CRITERIA IN SUBDIVISION FOUR OF
THIS SECTION; PROVIDED HOWEVER, DEVELOPMENT POWER AND PRESERVATION POWER
PROCEEDS  EQUALING  SEVENTY  PERCENT  OF AVAILABLE MONETIZED POWER SHALL
ANNUALLY BE ALLOCATED TO ELIGIBLE APPLICANTS RECOMMENDED  BY  THE  SAINT
LAWRENCE  RIVER VALLEY REDEVELOPMENT AGENCY, OR ITS SUCCESSOR ENTITY, TO
THE BOARD WITH THE REQUIREMENT THAT THREE HUNDRED  THOUSAND  DOLLARS  OF
SUCH DEVELOPMENT POWER PROCEEDS SHALL BE APPORTIONED FOR THE ADMINISTRA-
TIVE  COSTS  OF  THE  SAINT  LAWRENCE RIVER VALLEY REDEVELOPMENT AGENCY;
PROVIDED FURTHER THAT DEVELOPMENT POWER PROCEEDS EQUALING THIRTY PERCENT
OF AVAILABLE  MONETIZED  POWER  SHALL  ANNUALLY  BE  ALLOCATED  FOR  THE
PURPOSES  OF  PROVIDING  NECESSARY STATE MATCHES FOR FUNDING THE DESIGN,
DEVELOPMENT, CONSTRUCTION AND OTHER COSTS ASSOCIATED WITH  THE  IMPROVE-
MENT  OF  A HIGHWAY TRANSPORTATION CAPACITY EXPANSION PROJECT LOCATED IN
THE COUNTY OF ST. LAWRENCE. THE BOARD MAY RECOMMEND TO THE AUTHORITY  AN
ALLOCATION  OF  DEVELOPMENT  OR PRESERVATION POWER TO AN ELIGIBLE APPLI-
CANT, PROVIDED THAT SUCH ALLOCATION SHALL NOT BE IN ADDITION TO AN ALLO-
CATION OF MONETIZED ECONOMIC DEVELOPMENT POWER  OR  PRESERVATION  POWER.
THE  BOARD MAY INCLUDE WITHIN ITS RECOMMENDATIONS SUCH RECOMMENDED TERMS
AND CONDITIONS AS IT DEEMS APPROPRIATE, INCLUDING, BUT NOT  LIMITED  TO,
REASONABLE  PROVISION  FOR  THE ALLOCATION OF FUND BENEFITS OVER TIME AS
THE ELIGIBLE APPLICANT ACHIEVES MILESTONES TOWARDS  PROJECT  COMPLETION,
THE  PARTIAL OR COMPLETE WITHDRAWAL OR RETURN OF FUND BENEFITS WHERE THE
RECIPIENT HAS FAILED TO ACHIEVE OR MAINTAIN MUTUALLY AGREED UPON COMMIT-
MENTS, OR SUCH OTHER TERMS AND CONDITIONS AS THE BOARD DEEMS  ADVISABLE.
THE  BOARD  SHALL  NOT RECOMMEND AN ALLOCATION OF FUND BENEFITS PRIOR TO
ESTABLISHING PROCEDURES FOR REVIEWING APPLICATIONS PURSUANT TO  SUBDIVI-
SION TWO OF THIS SECTION.
  6. A RECOMMENDATION BY THE BOARD THAT AN ELIGIBLE APPLICANT RECEIVE AN
ALLOCATION  OF FUND BENEFITS SHALL BE A PREREQUISITE TO AN AWARD OF FUND
BENEFITS BY THE AUTHORITY. THE AUTHORITY SHALL AWARD FUND BENEFITS TO AN
APPLICANT UPON A RECOMMENDATION OF THE BOARD;  PROVIDED,  HOWEVER,  THAT
UPON  A SHOWING OF GOOD CAUSE, THE AUTHORITY SHALL HAVE DISCRETION AS TO
WHETHER TO ADOPT THE BOARD'S RECOMMENDATION, OR TO AWARD BENEFITS  IN  A
DIFFERENT  AMOUNT  OR  ON  DIFFERENT  TERMS  AND  CONDITIONS  THAN THOSE
CONTAINED IN THE RECOMMENDATION OF THE BOARD.  ALLOCATIONS OF FUND BENE-
FITS SHALL ONLY BE MADE ON THE BASIS OF DEVELOPMENT POWER  OR  PRESERVA-
TION  POWER  NET  EARNINGS  THAT HAVE BEEN DEPOSITED IN THE NORTHERN NEW
YORK ECONOMIC DEVELOPMENT FUND. NO AWARD OF FUND BENEFITS SHALL ENCUMBER
FUTURE DEVELOPMENT POWER OR PRESERVATION POWER NET EARNINGS OR  DEVELOP-
MENT  POWER  OR PRESERVATION POWER NET EARNINGS THAT HAVE BEEN RECEIVED,
BUT NOT DEPOSITED, IN THE NORTHERN NEW YORK ECONOMIC DEVELOPMENT FUND.
  7. UPON MAKING AN ALLOCATION OF FUND  BENEFITS,  THE  AUTHORITY  SHALL
INCLUDE  WITHIN  THE  AGREEMENT  PROVIDING  FOR THE TERMS AND CONDITIONS
APPLICABLE TO SUCH ALLOCATION ALL TERMS  AND  CONDITIONS  THE  AUTHORITY
DEEMS  APPROPRIATE,  TAKING INTO ACCOUNT THE RECOMMENDATIONS MADE BY THE
BOARD.
  S 189-H. RULES AND REGULATIONS. THE AUTHORITY IS HEREBY AUTHORIZED  TO
PROMULGATE  SUCH  RULES AND REGULATIONS AS IT DEEMS NECESSARY TO FULFILL
THE PURPOSES OF THIS ARTICLE.

S. 5887                             5

  S 3. Section 1005 of the public authorities law is amended  by  adding
five new subdivisions 24, 25, 26, 27 and 28 to read as follows:
  24.  TO COOPERATE WITH THE NORTHERN NEW YORK POWER PROCEEDS ALLOCATION
BOARD AND PROVIDE THE BOARD WITH SUCH INFORMATION AND ASSISTANCE AS  THE
BOARD REASONABLY REQUESTS, INCLUDING REASONABLE STAFF SERVICES, ACCOUNT-
ING,  CLERICAL  AND  SECRETARIAL ASSISTANCE, OFFICE SPACE, AND EQUIPMENT
REASONABLY REQUESTED BY THE NORTHERN NEW YORK POWER PROCEEDS  ALLOCATION
BOARD TO FULFILL ITS DUTIES.
  25.  TO  ESTABLISH  AN  ACCOUNT  TO  BE KNOWN AS THE NORTHERN NEW YORK
ECONOMIC DEVELOPMENT FUND. SUCH FUND SHALL CONSIST OF "DEVELOPMENT POWER
NET EARNINGS" AND "PRESERVATION POWER NET EARNINGS" AS DEFINED IN  ARTI-
CLE  SIX-B  OF  THE  ECONOMIC DEVELOPMENT LAW. THE DEVELOPMENT POWER NET
EARNINGS AND PRESERVATION POWER NET EARNINGS SHALL BE DEPOSITED IN  SUCH
AMOUNTS AS DETERMINED TO BE FEASIBLE AND ADVISABLE BY THE TRUSTEES. SUCH
EARNING  SHALL BE DEPOSITED NO LESS FREQUENTLY THAN QUARTERLY. THE FIRST
DEPOSITS INTO THE FUND SHALL BE MADE NINETY  DAYS  AFTER  THE  EFFECTIVE
DATE  OF  THIS  SUBDIVISION, AND SHALL INCLUDE ALL DEVELOPMENT POWER AND
PRESERVATION POWER NET EARNINGS ACCRUED  SINCE  THE  EFFECTIVE  DATE  OF
CHAPTER  FOUR  HUNDRED  THIRTY-SIX  OF THE LAWS OF TWO THOUSAND TEN.  AT
LEAST FIFTEEN PERCENT OF SUCH FUNDS SHALL BE DEDICATED TOWARDS  ELIGIBLE
DEVELOPMENT  POWER  AND PRESERVATION POWER PROJECTS WHICH ARE ENERGY-RE-
LATED PROJECTS, PROGRAMS AND SERVICES AS SUCH TERM IS DEFINED IN SUBPAR-
AGRAPH TWO OF PARAGRAPH (B) OF SUBDIVISION SEVENTEEN OF THIS SECTION. IN
ADDITION TO FUNDING ELIGIBLE DEVELOPMENT POWER  AND  PRESERVATION  POWER
PROJECTS,  AS  SUCH  TERMS  ARE DEFINED IN ARTICLE SIX-B OF THE ECONOMIC
DEVELOPMENT LAW, THE AUTHORITY MAY USE NORTHERN NEW YORK ECONOMIC DEVEL-
OPMENT FUND MONIES TO COVER REASONABLE COSTS AND EXPENSES OF THE AUTHOR-
ITY RELATED TO THE MANAGEMENT AND ADMINISTRATION  OF  THE  NORTHERN  NEW
YORK  POWER  PROCEEDS ALLOCATION PROGRAM CREATED BY ARTICLE SIX-B OF THE
ECONOMIC DEVELOPMENT LAW.
  26. TO, IN ITS DISCRETION, CONSULT WITH THE NORTHERN  NEW  YORK  POWER
PROCEEDS  ALLOCATION  BOARD  IN  THE APPLICATION PROCESS RELATING TO THE
ALLOCATION OF DEVELOPMENT POWER AND PRESERVATION POWER.
  27. TO ESTABLISH PROCESSES FOR APPLICATION REVIEW  AND  ALLOCATION  OF
FUND  BENEFITS PROVIDED FOR IN ARTICLE SIX-B OF THE ECONOMIC DEVELOPMENT
LAW.
  28. TO INCLUDE IN THE ANNUAL REPORT PREPARED PURSUANT  TO  SUBDIVISION
EIGHTEEN  OF  THIS  SECTION,  AN  ACCOUNTING  FOR  THE SUBJECT YEAR THAT
PROVIDES (A) THE AMOUNT OF DEVELOPMENT POWER AND PRESERVATION POWER SOLD
INTO THE WHOLESALE MARKET BY THE  AUTHORITY,  AND  (B)  THE  DEVELOPMENT
POWER  AND  PRESERVATION  POWER  NET EARNINGS PAID INTO THE NORTHERN NEW
YORK ECONOMIC DEVELOPMENT FUND.
  S 4. This act shall take effect immediately.

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