S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10079
 
                           I N  A S S E M B L Y
 
                              March 14, 2018
                                ___________
 
 Introduced  by  M. of A. PAULIN, MONTESANO, SEAWRIGHT, D'URSO, ERRIGO --
   Multi-Sponsored by -- M. of A. CROUCH -- read once and referred to the
   Committee on Corporations, Authorities and Commissions
 
 AN ACT to amend the public authorities law, in relation  to  authorizing
   the power authority of the state of New York and the Long Island power
   authority  to  participate  in public-private transmission projects to
   improve the state's electric transmission grid
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Legislative  findings and purpose. The legislature hereby
 finds and determines that:
   1. The state's vital electric transmission grid  is  aging,  congested
 and  subject  to  outages caused by storms, obsolescence and the growing
 demands for energy by the  state's  residents,  and  such  problems  and
 conditions  pose  serious  threats  to  the  health, welfare, safety and
 economic well-being of the people of the state of New York.
   2. The condition and operation of the  state's  electric  transmission
 grid  is  a matter of state concern, and it is in the public interest to
 provide for the means  to  repair,  replace,  reinforce,  modernize  and
 expand  the  state's  electric  transmission grid to ensure the safe and
 reliable provision of electric service to the state's residents now  and
 into the future.
   3.  A  modernized  electric  transmission grid and energy highway will
 also encourage investments  in  new  energy-related  infrastructure  and
 technologies,  facilitate the development and integration into the power
 grid of renewable energy resources, and stimulate and  support  economic
 development in the state. Public-private transmission projects undertak-
 en  jointly by the owner of transmission facilities, systems and infras-
 tructure, including the power authority of the state of New York and the
 Long Island power authority, which provide  for  the  ongoing  planning,
 construction,  owning,  operating, maintaining and expanding of electric
 transmission facilities, systems and  infrastructure  can  serve  as  an
 effective  means to address the aforementioned problems and concerns and
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD07526-01-7

 A. 10079                            2
 
 stimulate ongoing critical investment in  the  state's  electric  trans-
 mission grid.
   4.  The purposes of this act can be achieved, while managing and miti-
 gating potential liabilities, by authorizing the power authority of  the
 state  of New York and the Long Island power authority to participate in
 such public-private  transmission  projects  through  the  formation  of
 subsidiary companies.
   § 2. Section 1001 of the public authorities law is amended by adding a
 new closing paragraph to read as follows:
   IT  IS FURTHER DECLARED THAT: (A) THERE SHOULD BE FULL COOPERATION AND
 COORDINATION AMONG PRIVATE AND PUBLIC OWNERS AND OPERATORS  OF  ELECTRIC
 TRANSMISSION  FACILITIES,  SYSTEMS  AND  INFRASTRUCTURE  IN  THE  STATE,
 INCLUDING THE AUTHORITY, FOR THE PURPOSE OF EXPEDITIOUSLY  CONSTRUCTING,
 REPAIRING,  REPLACING, REINFORCING, MODERNIZING OR EXPANDING THE STATE'S
 ELECTRIC TRANSMISSION GRID; (B) IT  IS  DESIRABLE  THAT  THE  AUTHORITY,
 WHICH  OWNS  AND  OPERATES  ELECTRIC  TRANSMISSION  ASSETS IN THE STATE,
 PARTICIPATE IN PUBLIC-PRIVATE TRANSMISSION PROJECTS THAT ARE  UNDERTAKEN
 BY  A  LIMITED  LIABILITY  COMPANY  OR  OTHER APPROPRIATE ORGANIZATIONAL
 STRUCTURE, THROUGH A SUBSIDIARY  COMPANY  FORMED  BY  THE  AUTHORITY  AS
 AUTHORIZED  BY THIS TITLE; AND (C) THE AUTHORITY SHOULD BE AUTHORIZED TO
 PARTICIPATE IN PUBLIC-PRIVATE TRANSMISSION PROJECTS AND TRANSFER  TRANS-
 MISSION  ASSETS  OR  ANY INTEREST THEREIN IN CONNECTION WITH ITS PARTIC-
 IPATION IN SUCH A LIMITED LIABILITY COMPANY OR OTHER APPROPRIATE  ORGAN-
 IZATIONAL  STRUCTURE  ON  SUCH TERMS AND CONDITIONS AS THE AUTHORITY MAY
 NEGOTIATE.
   § 3. Section 1005 of the public authorities law is amended by adding a
 new subdivision 26 to read as follows:
   26. A. FOR PURPOSES OF THIS SUBDIVISION,  THE  FOLLOWING  TERMS  SHALL
 HAVE THE MEANINGS INDICATED:
   (I)  "SUBSIDIARY  COMPANY"  MEANS A SUBSIDIARY COMPANY FORMED, WHOLLY-
 OWNED AND CONTROLLED BY THE AUTHORITY IN ACCORDANCE WITH AND SUBJECT  TO
 THE  BUSINESS  CORPORATION  LAW, THE NOT-FOR-PROFIT CORPORATION LAW, THE
 LIMITED LIABILITY COMPANY LAW OR THE TRANSPORTATION CORPORATIONS LAW.
   (II) "TRANSCO MASTER AGREEMENT" MEANS A  WRITTEN  AGREEMENT  PROVIDING
 FOR  THE FORMATION AND OPERATION OF A LIMITED LIABILITY COMPANY OR OTHER
 ORGANIZATIONAL STRUCTURE  TO  SERVE  AS  A  TRANSCO  COMPANY  AND  WHICH
 PROVIDES  FOR, AMONG OTHER THINGS, THE RIGHTS AND OBLIGATIONS OF MEMBERS
 OF SUCH TRANSCO COMPANY.
   (III) "TRANSCO ANCILLARY AGREEMENT" MEANS A WRITTEN  AGREEMENT,  OTHER
 THAN  A  TRANSCO  PROJECT AGREEMENT, BETWEEN THE AUTHORITY OR SUBSIDIARY
 COMPANY AND THE TRANSCO COMPANY AND/OR MEMBERS  OF  A  TRANSCO  COMPANY,
 MADE IN ACCORDANCE WITH THE TRANSCO MASTER AGREEMENT, FOR THE PURPOSE OF
 IMPLEMENTING THE TRANSCO MASTER AGREEMENT.
   (IV)  "TRANSCO  COMPANY"  MEANS  AN ENTITY FORMED IN ACCORDANCE WITH A
 TRANSCO MASTER AGREEMENT PRIMARILY  FOR THE PURPOSE OF ENGAGING  IN  THE
 BUSINESS  OF PLANNING, CONSTRUCTING, OWNING, OPERATING, MAINTAINING, AND
 EXPANDING ELECTRIC TRANSMISSION FACILITIES, SYSTEMS  AND  INFRASTRUCTURE
 SERVING THE PEOPLE OF THE STATE OF NEW YORK.
   (V) "TRANSCO PROJECT" MEANS A PROJECT UNDERTAKEN BY THE TRANSCO COMPA-
 NY IN ACCORDANCE WITH A TRANSCO MASTER AGREEMENT.
   (VI) "TRANSCO PROJECT AGREEMENT" MEANS A WRITTEN AGREEMENT BETWEEN THE
 AUTHORITY  OR  SUBSIDIARY COMPANY AND THE TRANSCO COMPANY AND/OR MEMBERS
 OF A TRANSCO COMPANY, MADE IN ACCORDANCE WITH THE TRANSCO MASTER  AGREE-
 MENT, THAT RELATES TO A SPECIFIC TRANSCO PROJECT.
   (VII)  "TRANSMISSION ASSETS" MEANS: (1) ALL PHYSICAL ASSETS (INCLUDING
 BUT NOT LIMITED TO ELECTRICAL  TRANSMISSION  LINES,  POLES,  TOWERS  AND

 A. 10079                            3
 
 SIMILAR STRUCTURES, CONDUITS, SUBSTATIONS, CONVERTER STATIONS, TRANSFOR-
 MERS,  CONDUCTORS,  INSULATORS,  SWITCHING  DEVICES, CONTROLS, BREAKERS,
 BUSES, STATIONS, RECTIFIERS, REGULATORS, EMERGENCY AND PROTECTIVE EQUIP-
 MENT  AND  DEVICES, UTILITY INTERCONNECTIONS AND OTHER EQUIPMENT USED OR
 NECESSARY FOR THE CONTROL, DISPATCH, RECEIPT AND DELIVERY OF  ENERGY  BY
 SUCH  FACILITIES)  USED  FOR  THE  PURPOSE OF TRANSMITTING OR DELIVERING
 DIRECT OR ALTERNATING CURRENT ELECTRIC ENERGY AT VOLTAGES  PRIMARILY  OF
 ONE  HUNDRED KILOVOLTS OR HIGHER TO LOADS OR INTERCONNECTION POINTS; AND
 (2) ALL ASSOCIATED (A) TANGIBLE AND INTANGIBLE PROPERTY USED TO OPERATE,
 CONTROL, PROTECT AND MAINTAIN SUCH ASSETS, (B) REAL PROPERTY RIGHTS  FOR
 LANDS  AND  RIGHTS-OF-WAY,  SITES,  AND  PLACES IN WHICH SUCH ASSETS ARE
 SITUATED OR INSTALLED, AND (C) LEGAL  AND  REGULATORY  RIGHTS,  AUTHORI-
 ZATIONS,  PERMITS, AND CONSENTS OF ANY NATURE TO OWN, OCCUPY, CONSTRUCT,
 USE, OPERATE AND MAINTAIN, AND RECEIVE OR DISPOSE OF REVENUES FROM  SUCH
 ASSETS  OR  LANDS  ON  WHICH  SUCH ASSETS ARE SITUATED, EXISTING, OWNED,
 LEASED, DESIGNED, USED AND OPERATED.
   B. NOTWITHSTANDING THE PROVISIONS OF ANY OTHER LAW, THE AUTHORITY  MAY
 (I)  PARTICIPATE IN PUBLIC/PRIVATE PARTNERSHIPS TO PROVIDE FOR THE MEANS
 TO CONSTRUCT, REPAIR,  REPLACE,  REINFORCE,  MODERNIZE  AND  EXPAND  THE
 STATE'S  ELECTRIC  TRANSMISSION  GRID  TO  ENSURE  THE SAFE AND RELIABLE
 PROVISION OF ELECTRIC SERVICE TO THE STATE'S RESIDENTS NOW AND INTO  THE
 FUTURE,  (II) FORM A SUBSIDIARY COMPANY FOR THE PURPOSE OF PARTICIPATING
 IN A TRANSCO COMPANY, (III) PARTICIPATE IN THE TRANSCO COMPANY BY  CAUS-
 ING  THE SUBSIDIARY COMPANY TO BECOME A PARTY TO A TRANSCO MASTER AGREE-
 MENT AND EXERCISE THE RIGHTS AND PERFORM THE OBLIGATIONS  OF  A  TRANSCO
 COMPANY MEMBER AS MAY BE PROVIDED FOR IN A TRANSCO MASTER AGREEMENT, AND
 (IV)  EXERCISE THE OTHER POWERS AND DUTIES PROVIDED FOR BY THIS SUBDIVI-
 SION.
   C. NOTWITHSTANDING THE PROVISIONS OF ANY OTHER LAW, IN ADDITION TO ANY
 OTHER POWERS AND DUTIES GRANTED TO IT UNDER THIS  TITLE,  THE  AUTHORITY
 SHALL BE AUTHORIZED TO:
   (I)  EXERCISE  ALL  OF  THE  RIGHTS AND PRIVILEGES ASSOCIATED WITH ANY
 OWNERSHIP INTEREST IN OR ORGANIZER OF THE SUBSIDIARY COMPANY;
   (II) ISSUE ITS BONDS, NOTES AND  OTHER  EVIDENCE  OF  INDEBTEDNESS  TO
 FINANCE  THE OPERATIONS OF THE SUBSIDIARY COMPANY, INCLUDING THE SUBSID-
 IARY COMPANY'S PARTICIPATION IN AND OBLIGATIONS UNDERTAKEN IN CONNECTION
 WITH A TRANSCO COMPANY;
   (III) LEND, OR OTHERWISE TRANSFER MONIES TO  THE  SUBSIDIARY  COMPANY,
 INCLUDING  THE  PROCEEDS OF THE AUTHORITY'S BONDS, NOTES, OTHER EVIDENCE
 OF INDEBTEDNESS AND OTHER AUTHORITY FUNDS;
   (IV) RECEIVE MONIES FROM THE SUBSIDIARY COMPANY, INCLUDING MONIES THAT
 RESULT FROM THE OPERATION OF THE TRANSCO COMPANY;
   (V) AS DEEMED FEASIBLE AND ADVISABLE BY THE TRUSTEES, TRANSFER TO  THE
 SUBSIDIARY  COMPANY  TRANSMISSION  ASSETS OR INTERESTS THEREIN THAT HAVE
 BEEN OR ARE EXPECTED TO BE USED IN PROJECTS UNDERTAKEN  BY  THE  TRANSCO
 COMPANY FOR SUCH CONSIDERATION AND ON SUCH OTHER TERMS AND CONDITIONS AS
 THE AUTHORITY SHALL NEGOTIATE;
   (VI)  RECEIVE  FROM  THE SUBSIDIARY COMPANY OR THE TRANSCO COMPANY ANY
 PERSONAL OR REAL PROPERTY;
   (VII) ENTER INTO GUARANTEE AGREEMENTS IN CONNECTION WITH  THE  SUBSID-
 IARY COMPANY'S PARTICIPATION IN THE TRANSCO COMPANY;
   (VIII)  ENTER  INTO  CONTRACTS  AND  OTHER FORMS OF AGREEMENT WITH THE
 TRANSCO COMPANY, THE SUBSIDIARY COMPANY AND OTHER MEMBERS OF THE TRANSCO
 COMPANY;
   (IX) PLEDGE OR ASSIGN ALL OR ANY PORTION OF ANY INTEREST IN A  TRANSCO
 COMPANY;

 A. 10079                            4
 
   (X) TRANSFER AND RECEIVE ALL OR ANY PORTION OF ANY INTEREST IN A TRAN-
 SCO COMPANY;
   (XI)  SELL,  PURCHASE, OR OTHERWISE TRANSFER ALL OR ANY PORTION OF ANY
 INTEREST IN A TRANSCO COMPANY  ON  SUCH  TERMS  AND  CONDITIONS  AS  THE
 AUTHORITY DEEMS APPROPRIATE;
   (XII)  ASSIGN  ONE  OR MORE EMPLOYEES TO PROVIDE SERVICES TO A TRANSCO
 COMPANY FOR A SPECIFIED PERIOD OF TIME, PROVIDED THAT ANY SUCH  EMPLOYEE
 SHALL CONTINUE TO BE AN EMPLOYEE OF THE AUTHORITY; AND
   (XIII) DISSOLVE OR TERMINATE THE SUBSIDIARY COMPANY IN ACCORDANCE WITH
 APPLICABLE LAW.
   D.  NOTWITHSTANDING THE PROVISIONS OF ANY OTHER LAW, NO TRUSTEE, OFFI-
 CER OR EMPLOYEE OF THE STATE, OR OF ANY STATE AGENCY,  PUBLIC  AUTHORITY
 OR  PUBLIC  BENEFIT  CORPORATION,  SHALL  BE DEEMED TO HAVE FORFEITED OR
 SHALL FORFEIT SUCH PERSON'S OFFICE OR EMPLOYMENT OR ANY BENEFITS ASSOCI-
 ATED THEREWITH BY REASON OF SUCH PERSON'S ACCEPTANCE OF  MEMBERSHIP  ON,
 OR  SUCH  PERSON  BEING  AN  OFFICER,  EMPLOYEE OR AGENT OF A SUBSIDIARY
 COMPANY, OR BY REASON OF  SUCH  PERSON'S  PROVISION  OF  SERVICES  TO  A
 SUBSIDIARY COMPANY.
   E.  THE  PROVISIONS  OF SECTION TWENTY-EIGHT HUNDRED SEVENTY-NINE-A OF
 THIS CHAPTER SHALL BE APPLICABLE TO  ANY  TRANSCO  MASTER  AGREEMENT  TO
 WHICH THE AUTHORITY OR SUBSIDIARY COMPANY IS A PARTY, BUT SHALL BE INAP-
 PLICABLE TO ANY TRANSCO ANCILLARY AGREEMENT OR TRANSCO PROJECT AGREEMENT
 THAT  OTHERWISE  SATISFIES  THE  REQUIREMENTS OF PARAGRAPH (A) OR (B) OF
 SUBDIVISION ONE OF SUCH SECTION PROVIDED THAT (I) A  FINAL  OR  SUBSTAN-
 TIALLY  NEGOTIATED  FORM  OF SUCH TRANSCO ANCILLARY AGREEMENT OR TRANSCO
 PROJECT AGREEMENT, AS THE CASE MAY BE, IS ANNEXED TO  A  TRANSCO  MASTER
 AGREEMENT  THAT  HAS BECOME VALID AND ENFORCEABLE IN ACCORDANCE WITH THE
 PROVISIONS OF SECTION TWENTY-EIGHT HUNDRED SEVENTY-NINE-A OF THIS  CHAP-
 TER,  AND  (II)  IN  THE  CASE OF A TRANSCO PROJECT AGREEMENT, THE FINAL
 EXECUTED FORM OF SUCH TRANSCO PROJECT AGREEMENT IS LIMITED TO A  TRANSCO
 PROJECT THAT WAS IDENTIFIED IN SUCH TRANSCO MASTER AGREEMENT.
   F.  THE  PROVISIONS  OF  TITLE  FIVE-A OF ARTICLE NINE OF THIS CHAPTER
 SHALL BE INAPPLICABLE TO ANY DISPOSAL OF PROPERTY BY  THE  AUTHORITY  OR
 SUBSIDIARY  COMPANY  THAT  (I) IS OTHERWISE AUTHORIZED BY THIS TITLE, OR
 (II) IS MADE IN ACCORDANCE WITH A  TRANSCO  MASTER  AGREEMENT  THAT  HAS
 BECOME  VALID  AND  ENFORCEABLE  IN  ACCORDANCE  WITH  THE PROVISIONS OF
 SECTION TWENTY-EIGHT HUNDRED SEVENTY-NINE-A OF THIS CHAPTER.
   G. NO ACTS OR ACTIVITIES TAKEN OR PROPOSED TO BE TAKEN BY THE AUTHORI-
 TY OR A SUBSIDIARY COMPANY PURSUANT TO THE PROVISIONS OF  THIS  SUBDIVI-
 SION,  INCLUDING  THE  EXECUTION  OF A TRANSCO MASTER AGREEMENT, AND THE
 ISSUANCE OF BONDS, NOTES, OR OTHER OBLIGATIONS, SHALL BE  DEEMED  TO  BE
 "ACTIONS" FOR THE PURPOSES OR WITHIN THE MEANING OF ARTICLE EIGHT OF THE
 ENVIRONMENTAL CONSERVATION LAW.
   H.  NOTWITHSTANDING THE PROVISIONS OF ANY OTHER LAW, THE AUTHORITY AND
 THE SUBSIDIARY COMPANY MAY ONLY PARTICIPATE IN A  TRANSCO  COMPANY  THAT
 CONSTRUCTS,  REPAIRS, REPLACES, REINFORCES, MODERNIZES OR EXPANDS TRANS-
 MISSION ASSETS, AND MAY  NOT  PARTICIPATE  IN  A  TRANSCO  COMPANY  THAT
 FINANCES OR CONSTRUCTS NEW ELECTRIC GENERATING FACILITIES.
   § 4. Section 1020-a of the public authorities law, as added by chapter
 517 of the laws of 1986, is amended by adding a new closing paragraph to
 read as follows:
   THE  LEGISLATURE  FURTHER FINDS AND DECLARES THAT: (I) THERE SHOULD BE
 FULL COOPERATION AND COORDINATION AMONG PRIVATE AND  PUBLIC  OWNERS  AND
 OPERATORS  OF  ELECTRIC TRANSMISSION FACILITIES, SYSTEMS AND INFRASTRUC-
 TURE IN THE STATE, INCLUDING THE AUTHORITY, FOR  THE  PURPOSE  OF  EXPE-
 DITIOUSLY  CONSTRUCTING,  REPAIRING, REPLACING, REINFORCING, MODERNIZING

 A. 10079                            5
 
 OR EXPANDING THE STATE'S ELECTRIC TRANSMISSION GRID; (II) IT IS  DESIRA-
 BLE  THAT  THE  AUTHORITY, WHICH OWNS AND OPERATES ELECTRIC TRANSMISSION
 ASSETS  IN  THE  STATE,  PARTICIPATES  IN  PUBLIC-PRIVATE   TRANSMISSION
 PROJECTS  THAT  ARE  UNDERTAKEN  BY A LIMITED LIABILITY COMPANY OR OTHER
 APPROPRIATE  ORGANIZATIONAL  STRUCTURE,  THROUGH  A  SUBSIDIARY  COMPANY
 FORMED  BY  THE  AUTHORITY  AS  AUTHORIZED  BY THIS TITLE; AND (III) THE
 AUTHORITY SHOULD BE AUTHORIZED TO PARTICIPATE IN  PUBLIC-PRIVATE  TRANS-
 MISSION PROJECTS AND TRANSFER TRANSMISSION ASSETS OR ANY INTEREST THERE-
 IN  IN  CONNECTION  WITH  ITS  PARTICIPATION IN SUCH A LIMITED LIABILITY
 COMPANY OR OTHER APPROPRIATE ORGANIZATIONAL STRUCTURE ON SUCH TERMS  AND
 CONDITIONS AS THE AUTHORITY MAY NEGOTIATE.
   § 5. Subdivision 2 of section 1020-c of the public authorities law, as
 added by chapter 517 of the laws of 1986, is amended to read as follows:
   2.  The area of operations of the authority shall be the service area,
 PROVIDED THAT THE AUTHORITY OR SUBSIDIARY COMPANY MAY OWN AN INTEREST IN
 TRANSMISSION ASSETS THAT ARE LOCATED IN WHOLE OR  IN  PART  OUTSIDE  THE
 SERVICE AREA.
   § 6. Section 1020-f of the public authorities law is amended by adding
 a new subdivision (g-1) to read as follows:
   (G-1)  (I)  FOR PURPOSES OF THIS SUBDIVISION, THE FOLLOWING TERMS HAVE
 THE MEANINGS INDICATED:
   1. "SUBSIDIARY COMPANY" MEANS A  SUBSIDIARY  COMPANY  FORMED,  WHOLLY-
 OWNED  AND CONTROLLED BY THE AUTHORITY IN ACCORDANCE WITH AND SUBJECT TO
 THE BUSINESS CORPORATION LAW, THE NOT-FOR-PROFIT  CORPORATION  LAW,  THE
 LIMITED LIABILITY COMPANY LAW OR THE TRANSPORTATION CORPORATIONS LAW.
   2.  "TRANSCO MASTER AGREEMENT" MEANS A WRITTEN AGREEMENT PROVIDING FOR
 THE FORMATION AND OPERATION OF A  LIMITED  LIABILITY  COMPANY  OR  OTHER
 ORGANIZATIONAL  STRUCTURE  TO  SERVE  AS  A  TRANSCO  COMPANY  AND WHICH
 PROVIDES FOR, AMONG OTHER THINGS, THE RIGHTS AND OBLIGATIONS OF  MEMBERS
 OF SUCH TRANSCO COMPANY.
   3. "TRANSCO ANCILLARY AGREEMENT" MEANS A WRITTEN AGREEMENT, OTHER THAN
 A TRANSCO PROJECT AGREEMENT, BETWEEN THE AUTHORITY OR SUBSIDIARY COMPANY
 AND  THE  TRANSCO  COMPANY  AND/OR MEMBERS OF A TRANSCO COMPANY, MADE IN
 ACCORDANCE WITH THE TRANSCO MASTER AGREEMENT, FOR THE PURPOSE OF  IMPLE-
 MENTING THE TRANSCO MASTER AGREEMENT.
   4. "TRANSCO COMPANY" MEANS AN ENTITY FORMED IN ACCORDANCE WITH A TRAN-
 SCO  MASTER AGREEMENT PRIMARILY FOR THE PURPOSE OF ENGAGING IN THE BUSI-
 NESS OF PLANNING,  CONSTRUCTING,  OWNING,  OPERATING,  MAINTAINING,  AND
 EXPANDING  ELECTRIC  TRANSMISSION FACILITIES, SYSTEMS AND INFRASTRUCTURE
 SERVING THE PEOPLE OF THE STATE OF NEW YORK.
   5. "TRANSCO PROJECT" MEANS A PROJECT UNDERTAKEN BY THE TRANSCO COMPANY
 IN ACCORDANCE WITH A TRANSCO MASTER AGREEMENT.
   6. "TRANSCO PROJECT AGREEMENT" MEANS A WRITTEN AGREEMENT  BETWEEN  THE
 AUTHORITY  OR  SUBSIDIARY COMPANY AND THE TRANSCO COMPANY AND/OR MEMBERS
 OF A TRANSCO COMPANY, MADE IN ACCORDANCE WITH THE TRANSCO MASTER  AGREE-
 MENT, THAT RELATES TO A SPECIFIC TRANSCO PROJECT.
   7. "TRANSMISSION ASSETS" MEANS: (A) ALL PHYSICAL ASSETS (INCLUDING BUT
 NOT  LIMITED TO ELECTRICAL TRANSMISSION LINES, POLES, TOWERS AND SIMILAR
 STRUCTURES, CONDUITS,  SUBSTATIONS,  CONVERTER  STATIONS,  TRANSFORMERS,
 CONDUCTORS,  INSULATORS,  SWITCHING  DEVICES, CONTROLS, BREAKERS, BUSES,
 STATIONS, RECTIFIERS, REGULATORS, EMERGENCY AND PROTECTIVE EQUIPMENT AND
 DEVICES, UTILITY INTERCONNECTIONS AND OTHER EQUIPMENT USED OR  NECESSARY
 FOR THE CONTROL, DISPATCH, RECEIPT AND DELIVERY OF ENERGY BY SUCH FACIL-
 ITIES)  USED  FOR  THE  PURPOSE  OF TRANSMITTING OR DELIVERING DIRECT OR
 ALTERNATING CURRENT ELECTRIC ENERGY AT VOLTAGES PRIMARILY OF ONE HUNDRED
 KILOVOLTS OR HIGHER TO LOADS OR  INTERCONNECTION  POINTS;  AND  (B)  ALL

 A. 10079                            6

 ASSOCIATED  (I)  TANGIBLE  AND  INTANGIBLE  PROPERTY  USED  TO  OPERATE,
 CONTROL, PROTECT AND MAINTAIN SUCH ASSETS, (II) REAL PROPERTY RIGHTS FOR
 LANDS AND RIGHTS-OF-WAY, SITES, AND PLACES  IN  WHICH  SUCH  ASSETS  ARE
 SITUATED  OR  INSTALLED, AND (III) LEGAL AND REGULATORY RIGHTS, AUTHORI-
 ZATIONS, PERMITS, AND CONSENTS OF ANY NATURE TO OWN, OCCUPY,  CONSTRUCT,
 USE,  OPERATE AND MAINTAIN, AND RECEIVE OR DISPOSE OF REVENUES FROM SUCH
 ASSETS OR LANDS ON WHICH SUCH  ASSETS  ARE  SITUATED,  EXISTING,  OWNED,
 LEASED, DESIGNED, USED AND OPERATED.
   (II)  NOTWITHSTANDING  THE  PROVISIONS OF ANY OTHER LAW, INCLUDING THE
 PROVISIONS OF SECTION ONE THOUSAND TWENTY-I OF THIS TITLE, THE AUTHORITY
 MAY 1. FORM A SUBSIDIARY COMPANY FOR THE PURPOSE OF PARTICIPATING  IN  A
 TRANSCO  COMPANY, 2.   PARTICIPATE IN THE TRANSCO COMPANY BY CAUSING THE
 SUBSIDIARY COMPANY TO BECOME A PARTY TO A TRANSCO MASTER  AGREEMENT  AND
 EXERCISE  THE  RIGHTS  AND  PERFORM THE OBLIGATIONS OF A TRANSCO COMPANY
 MEMBER AS MAY BE PROVIDED FOR IN A  TRANSCO  MASTER  AGREEMENT,  AND  3.
 EXERCISE THE OTHER POWERS AND DUTIES PROVIDED FOR BY THIS SUBDIVISION.
   (III)  NOTWITHSTANDING THE PROVISIONS OF ANY OTHER LAW, IN ADDITION TO
 ANY OTHER POWERS AND DUTIES GRANTED TO IT UNDER THIS TITLE, THE AUTHORI-
 TY SHALL BE AUTHORIZED TO:
   1.   PARTICIPATE IN PUBLIC/PRIVATE PARTNERSHIPS  TO  PROVIDE  FOR  THE
 MEANS  TO CONSTRUCT, REPAIR, REPLACE, REINFORCE, MODERNIZE OR EXPAND THE
 STATE'S ELECTRIC TRANSMISSION GRID  TO  ENSURE  THE  SAFE  AND  RELIABLE
 PROVISION  OF ELECTRIC SERVICE TO THE SERVICE AREA AND THE STATE'S RESI-
 DENTS NOW AND INTO THE FUTURE;
   2. EXERCISE ALL OF THE  RIGHTS  AND  PRIVILEGES  ASSOCIATED  WITH  ANY
 OWNERSHIP INTEREST IN OR ORGANIZER OF THE SUBSIDIARY COMPANY;
   3.  ISSUE  ITS  BONDS,  NOTES  AND  OTHER  EVIDENCE OF INDEBTEDNESS TO
 FINANCE THE OPERATIONS OF THE SUBSIDIARY COMPANY, INCLUDING THE  SUBSID-
 IARY COMPANY'S PARTICIPATION IN AND OBLIGATIONS UNDERTAKEN IN CONNECTION
 WITH A TRANSCO COMPANY;
   4.  LEND,  OR  OTHERWISE  TRANSFER  MONIES  TO THE SUBSIDIARY COMPANY,
 INCLUDING THE PROCEEDS OF THE AUTHORITY'S BONDS, NOTES,  OTHER  EVIDENCE
 OF INDEBTEDNESS AND OTHER AUTHORITY FUNDS;
   5.  RECEIVE  MONIES FROM THE SUBSIDIARY COMPANY, INCLUDING MONIES THAT
 RESULT FROM THE OPERATION OF THE TRANSCO COMPANY;
   6.  AS DEEMED FEASIBLE AND ADVISABLE BY THE TRUSTEES, TRANSFER TO  THE
 SUBSIDIARY COMPANY TRANSMISSION ASSETS THAT HAVE BEEN OR ARE EXPECTED TO
 BE USED IN PROJECTS UNDERTAKEN BY THE TRANSCO COMPANY FOR SUCH CONSIDER-
 ATION  AND  ON  SUCH  OTHER  TERMS AND CONDITIONS AS THE AUTHORITY SHALL
 NEGOTIATE;
   7. RECEIVE FROM THE SUBSIDIARY COMPANY  OR  THE  TRANSCO  COMPANY  ANY
 PERSONAL OR REAL PROPERTY;
   8.  ENTER  INTO GUARANTEE AGREEMENTS IN CONNECTION WITH THE SUBSIDIARY
 COMPANY'S PARTICIPATION IN THE TRANSCO COMPANY;
   9. ENTER INTO CONTRACTS AND OTHER FORMS OF AGREEMENT WITH THE  TRANSCO
 COMPANY,  THE SUBSIDIARY COMPANY AND OTHER MEMBERS OF THE TRANSCO COMPA-
 NY;
   10. PLEDGE OR ASSIGN ALL OR ANY PORTION OF ANY INTEREST IN  A  TRANSCO
 COMPANY;
   11. TRANSFER AND RECEIVE ALL OR ANY PORTION OF ANY INTEREST IN A TRAN-
 SCO COMPANY;
   12.  SELL,  PURCHASE,  OR OTHERWISE TRANSFER ALL OR ANY PORTION OF ANY
 INTEREST IN A TRANSCO COMPANY  ON  SUCH  TERMS  AND  CONDITIONS  AS  THE
 AUTHORITY DEEMS APPROPRIATE;

 A. 10079                            7
 
   13.  ASSIGN  ONE  OR  MORE  EMPLOYEES TO PROVIDE SERVICES TO A TRANSCO
 COMPANY FOR A SPECIFIED PERIOD OF TIME, PROVIDED THAT ANY SUCH  EMPLOYEE
 SHALL CONTINUE TO BE AN EMPLOYEE OF THE AUTHORITY; AND
   14.  DISSOLVE  OR  TERMINATE THE SUBSIDIARY COMPANY IN ACCORDANCE WITH
 APPLICABLE LAW.
   (IV) NOTWITHSTANDING THE PROVISIONS OF  ANY  OTHER  LAW,  NO  TRUSTEE,
 OFFICER OR EMPLOYEE OF THE STATE, OR OF ANY STATE AGENCY, PUBLIC AUTHOR-
 ITY  OR PUBLIC BENEFIT CORPORATION, SHALL BE DEEMED TO HAVE FORFEITED OR
 SHALL FORFEIT SUCH PERSON'S OFFICE OR EMPLOYMENT OR ANY BENEFITS ASSOCI-
 ATED THEREWITH BY REASON OF SUCH PERSON'S ACCEPTANCE OF  MEMBERSHIP  ON,
 OR  SUCH  PERSON  BEING  AN  OFFICER, EMPLOYEE OR AGENT OF, A SUBSIDIARY
 COMPANY, OR BY REASON OF  SUCH  PERSON'S  PROVISION  OF  SERVICES  TO  A
 SUBSIDIARY COMPANY.
   (V)  THE  PROVISIONS  OF  SECTION ONE THOUSAND TWENTY-CC OF THIS TITLE
 SHALL BE INAPPLICABLE TO ANY TRANSCO MASTER AGREEMENT, TRANSCO ANCILLARY
 AGREEMENT, OR TRANSCO PROJECT AGREEMENT.
   (VI) THE PROVISIONS OF SECTION TWENTY-EIGHT HUNDRED SEVENTY-NINE-A  OF
 THIS  CHAPTER  SHALL  BE  APPLICABLE  TO ANY TRANSCO MASTER AGREEMENT TO
 WHICH THE AUTHORITY OR SUBSIDIARY COMPANY IS A PARTY, BUT SHALL BE INAP-
 PLICABLE TO ANY TRANSCO ANCILLARY AGREEMENT OR TRANSCO PROJECT AGREEMENT
 THAT OTHERWISE SATISFIES THE REQUIREMENTS OF PARAGRAPH  (A)  OR  (B)  OF
 SUBDIVISION ONE OF SUCH SECTION PROVIDED THAT 1. A FINAL OR SUBSTANTIAL-
 LY  NEGOTIATED  FORM  OF  SUCH  TRANSCO  ANCILLARY  AGREEMENT OR TRANSCO
 PROJECT AGREEMENT, AS THE CASE MAY BE, IS ANNEXED TO  A  TRANSCO  MASTER
 AGREEMENT  THAT  HAS BECOME VALID AND ENFORCEABLE IN ACCORDANCE WITH THE
 PROVISIONS OF SECTION TWENTY-EIGHT HUNDRED SEVENTY-NINE-A OF THIS  CHAP-
 TER,  AND  2.  IN  THE  CASE  OF  A TRANSCO PROJECT AGREEMENT, THE FINAL
 EXECUTED FORM OF SUCH TRANSCO PROJECT AGREEMENT IS LIMITED TO A  TRANSCO
 PROJECT THAT WAS IDENTIFIED IN SUCH TRANSCO MASTER AGREEMENT.
   (VII)  THE  PROVISIONS OF TITLE FIVE-A OF ARTICLE NINE OF THIS CHAPTER
 SHALL BE INAPPLICABLE TO ANY DISPOSAL OF PROPERTY BY  THE  AUTHORITY  OR
 SUBSIDIARY  COMPANY THAT 1. IS OTHERWISE AUTHORIZED BY THIS TITLE, OR 2.
 IS MADE IN ACCORDANCE WITH A TRANSCO MASTER AGREEMENT  THAT  HAS  BECOME
 VALID AND ENFORCEABLE IN ACCORDANCE WITH THE PROVISIONS OF SECTION TWEN-
 TY-EIGHT HUNDRED SEVENTY-NINE-A OF THIS CHAPTER.
   (VIII)  THE  PROVISIONS OF PARAGRAPH (D) OF SUBDIVISION ONE OF SECTION
 ONE THOUSAND TWENTY-S OF THIS TITLE AND SECTION THREE-B  OF  THE  PUBLIC
 SERVICE  LAW  SHALL BE INAPPLICABLE TO THE RATES, SERVICES AND PRACTICES
 RELATED TO THE TRANSCO MASTER AGREEMENT AND ANY  ACTIONS  UNDERTAKEN  BY
 THE  AUTHORITY  OR SUBSIDIARY CORPORATION IN ACCORDANCE WITH THE TRANSCO
 MASTER AGREEMENT.
   (IX) NO ACTS OR ACTIVITIES TAKEN  OR  PROPOSED  TO  BE  TAKEN  BY  THE
 AUTHORITY  OR  A  SUBSIDIARY  COMPANY PURSUANT TO THE PROVISIONS OF THIS
 SUBDIVISION, INCLUDING THE EXECUTION OF A TRANSCO MASTER AGREEMENT,  AND
 THE  ISSUANCE  OF BONDS, NOTES, OR OTHER OBLIGATIONS, SHALL BE DEEMED TO
 BE "ACTIONS" FOR THE PURPOSES OR WITHIN THE MEANING OF ARTICLE EIGHT  OF
 THE ENVIRONMENTAL CONSERVATION LAW.
   (X) NOTWITHSTANDING THE PROVISIONS OF ANY OTHER LAW, THE AUTHORITY AND
 THE  SUBSIDIARY  COMPANY  MAY ONLY PARTICIPATE IN A TRANSCO COMPANY THAT
 CONSTRUCTS, REPAIRS, REPLACES, REINFORCES, MODERNIZES OR EXPANDS  TRANS-
 MISSION  ASSETS,  AND  MAY  NOT  PARTICIPATE  IN  A TRANSCO COMPANY THAT
 FINANCES OR CONSTRUCTS NEW ELECTRIC GENERATING FACILITIES.
   § 7. Severability clause. If any clause, sentence, paragraph, subdivi-
 sion, section or part of this act shall be  adjudged  by  any  court  of
 competent  jurisdiction  to  be invalid, such judgment shall not affect,
 impair, or invalidate the remainder thereof, but shall  be  confined  in

 A. 10079                            8
 
 its  operation  to the clause, sentence, paragraph, subdivision, section
 or part thereof directly involved in the controversy in which such judg-
 ment shall have been rendered. It is hereby declared to be the intent of
 the  legislature  that  this  act  would  have been enacted even if such
 invalid provisions had not been included therewith.
   § 8. This act shall take effect immediately.