Senate Bill S5126

                                 BILL NUMBER:  S5126

 TITLE OF BILL :  An act to amend the public authorities law, in
relation to the authority to contract for energy

 PURPOSE OR GENERAL IDEA OF BILL :

The purpose of this bill is to ensure that the New York Power
Authority (NYPA) does not encourage the development of transmission
lines that discriminate against electric generating facilities in New
York state by contracting to acquire energy, or environmental
attributes associated with energy, that is generated by electric
generating facilities located outside of the country and is delivered
over transmission lines that do not provide access to electric
generating facilities in New York to transmit their energy within New
York State.

 SPECIFIC PROVISIONS :

Section 1 of this bill would apply to energy transmitted over an
electric transmission line that: (1) may be, but is not limited to, a
high voltage direct current electric transmission line; (2) enters
commercial operation after the effective date of this act; (3)
connects a location outside of the Unites States to a location within
New York State; and (4) does not provide access within New York State
for the state's electric generating facilities also to transmit their
              

energy over the line.

Section 1 of the bill would prohibit NYPA from contracting for or
otherwise buying or acquiring energy, or environmental attributes
associated with energy transmitted over such an electric transmission
line, from any company, any municipal entity, or any other legal
entity.

Section 2 of the bill provides for an immediate effective date of
these provisions.

 JUSTIFICATION :

The ability of NYPA to enter into contracts involves the use of its
buying power and leverage to command the kinds of goods and services
that it desires. NYPA's economic strength should be used to send
signals to markets to help achieve a public purpose that benefits New
York State as a whole and is in the public interest.

NYPA currently has a contract with the City of New York to supply its
power needs. Among its other customers, in addition to the City of New
York, NYPA's statute also requires it to supply power and energy for
the Metropolitan Transportation Authority, its subsidiary
corporations, the New York City Transit Authority, the Port Authority
of New York and New Jersey, the State of New York, the United States,
other public corporations and electric corporations within the
metropolitan area of the City of New York. The New York City
Administrative Code requires the City of New York to contract for or
otherwise purchase or acquire hydroelectric or other forms of energy
as shall be available from NYPA, among other entities.

In 1989, NYPA entered into a contract with Hydro-Quebec, an electric
utility wholly owned by the Province of Quebec, Canada, for the
importation of 1,000 megawatts (MW) of capacity. NYPA also entered
into contracts with three New York State utilities and its
governmental customers in Downstate New York for the resale of the
power. In 1992, NYPA cancelled its 1989 contract because the
contracted price was too expensive.


In September of 2016, the Office of Sustainability under New York City
Mayor Bill de Blasio issued its "Roadmap to 80 x 50," which
acknowledges that the City issued its 2015 Renewable Energy Request
for Information. The document noted that the City is speaking with
project developers seeking to import renewable energy from outside the
City via high voltage direct current transmission lines.

Transmission lines that originate outside the territorial limits of
the United States and that do not provide access to electric
generating facilities in New York to transmit energy within New York
State do not sufficiently encourage employment opportunities or
economic development within the state, and such transmission lines
harm electric generating facilities in New York. Such lines would
bypass existing and new electric generating facilities in New York
State, including renewable energy resources. More specifically, such
transmission projects will: (1) discourage the building of new
generating facilities, especially renewable energy resources, in New
York State and transmission lines to transmit energy generated in New
York state to where it is needed; (2) discourage the repowering of
existing generating facilities within New York State to reduce
emissions further in this state; and (3) discourage the rebuilding of
existing transmission lines in the state to transmit energy from
Upstate to Downstate. If NYPA, either directly or on behalf of the
City of New York, were to enter into a contract to buy power that
would come over such transmission lines, the contract would provide
the huge subsidy from NYPA's ratepayers (and likely the City's
taxpayers) that would be needed for such transmission lines to be
built.

Construction and development of transmission lines that provide access
to electric generating facilities in New York State maximizes
employment and economic development in New York State and in our
nation. As the United States moves toward supporting procurement that
favors American-made resources at both the national and state levels,
NYPA's contracting power should not be used to enable projects that
would import power from another country when greater value is derived
by investing in New York's own electric system and the economic
benefits, tax revenues, and jobs those generation and transmission
resources provide to their local communities. New York State cannot
afford to send those jobs and revenues to Canada, and such an action
would not be in the public interest.

 PRIOR LEGISLATIVE HISTORY :

New Bill

 FISCAL IMPLICATIONS :

None

 EFFECTIVE DATE :
This act shall take effect immediately.