S T A T E O F N E W Y O R K
________________________________________________________________________
4211--A
2015-2016 Regular Sessions
I N S E N A T E
March 11, 2015
___________
Introduced by Sens. GRIFFO, RITCHIE -- read twice and ordered printed,
and when printed to be committed to the Committee on Energy and Tele-
communications -- recommitted to the Committee on Energy and Telecom-
munications 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 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.
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.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02116-03-6
S. 4211--A 2
S 2. The public service law is amended by adding a new section 28 to
read as follows:
S 28. 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 OCTOBER FIRST, TWO
THOUSAND SIXTEEN, DEDICATE NO LESS THAN FIFTY MILLION DOLLARS PER YEAR
FROM ASSESSMENTS INTENDED TO PROVIDE FUNDING TO ADVANCE CLEANER, MORE
RESILIENT, MORE EFFICIENT, LOCALIZED AND MORE AFFORDABLE ENERGY INFRAS-
TRUCTURE, AND TO ENHANCE THE GOALS OF THE STATE ENERGY PLAN, COLLECTED
BY GAS CORPORATIONS AND COMBINATION GAS AND ELECTRIC CORPORATIONS FROM
THEIR GAS CUSTOMERS. THESE FUNDS MUST BE USED FOR THE SUPPORT OF
CONSTRUCTION OF INFRASTRUCTURE DESIGNED TO EXTEND THE SUPPLY OF NATURAL
GAS FROM EXISTING LARGE CAPACITY INFRASTRUCTURE TO AREAS PRESENTLY NOT
SERVED BY NATURAL GAS INFRASTRUCTURE SUPPLY, INCLUDING BUT NOT LIMITED
TO NEW INDUSTRIAL (ESPECIALLY MANUFACTURING), COMMERCIAL, RESIDENTIAL OR
PUBLIC END-USE CUSTOMERS OF A GAS CORPORATION OR COMBINATION GAS AND
ELECTRIC CORPORATION PROVIDING SERVICE IN NEW YORK STATE WITH SUCH NEW
CUSTOMER'S CONSENT. 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 144
to read as follows:
S 144. 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-s to read as follows:
S 485-S. 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-
S. 4211--A 3
TURE 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 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-t to read as follows:
S 485-T. 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. 4211--A 4
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 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.