NY State Senate Bill 2019-S7243

Senate Bill S7243

2019-2020 Legislative Session

Relates to providing the New York power authority with the right of first offer and refusal; bans non-state run energy services companies; repealer

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Archive: Last Bill Status - In Senate Committee Energy And Telecommunications Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 13, 2020	referred to energy and telecommunications

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2019-S7243 (ACTIVE) - Details

See Assembly Version of this Bill:: A8937
Current Committee:: Senate Energy And Telecommunications
Law Section:: Public Authorities Law
Laws Affected:: Amd §1005, Pub Auth L; add §28, amd §44, Pub Serv L; rpld §349-d, Gen Bus L
Versions Introduced in Other Legislative Sessions:: 2021-2022: S3032, A1382
2023-2024: S2583, A443

2019-S7243 (ACTIVE) - Summary

Provides the New York power authority with the right of first offer and refusal for acquiring any renewable generation facility, renewable energy generation project and any power or energy created by a renewable generation facility or renewable energy generation project; bans non-state run energy services companies; allows the New York power authority to take over and operate as an energy services company.

2019-S7243 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S7243

SPONSOR: PARKER
 
TITLE OF BILL:

An act to amend the public authorities law and the public service law,
in relation to providing the New York power authority with the right of
first offer and refusal for certain renewable generation facilities and
any power or energy created by such renewable generation facilities;
bans energy services companies; and to repeal certain provisions of the
general business law relating thereto

 
PURPOSE OR GENERAL IDEA OF BILL:

To provide the right of first refusal on renewable energy projects to
the New York Power Authority and to ban energy services companies.

 
SUMMARY OF PROVISIONS:

Section 1 amends Section 1005 of the public authorities law by adding a
new subdivision 28 which grants the New York Public Power Authority

first refusal rights to purchase any renewable generation facility,
renewable energy generation project or any power or energy created by a
renewable generation facility or renewable energy generation project.

Section 2 amends the public service law to by adding a new section 28
which defines grounds of first refusal as needed for the previous
section. The New York Power Authority shall be allowed to match the
purchase price of any renewable facility, project, and or and renewably
generated power, and so assume the role of purchaser.

Section 3 makes clear that nothing in the previous sections is intended
to limit, impair, or affect the legal authority of the power authority
of New York under any other provisions of tile 1 of article 5 of the
public authorities law.

Section 4 states the act shall take effect immediately.

 
JUSTIFICATION:

With the passage of the CLCPA, New York State has a mandate to scale up
our renewable energy infrastructure. But currently, New York only gets
around 5% of its energy from wind and solar, and most renewable energy
in the state is purchased from Energy Service Companies (ESCOs).  ESCOs
employ predatory practices and are nearly always more expensive than
obtaining generation through a utility, overcharging between $30 and $40
million/month. This bill would ban ESCOs and instead allow the New York
Power Authority to build, purchase, and sell affordable 100% renewable
energy to all New Yorkers. NYPA is the Most financially viable entity
for scaling up renewables at the scale needed as it has the lowest cost
of capital, doesn't need to generate a profit for shareholders, and can
make renewable energy a right for all New Yorkers regardless of income,
race, or class. This bill unleashes NYPA, giving it the ability to own
new renewable energy generation and have the right of first offer on all
new generation projects. It commits us to the renewable energy transi-
tion that New York State needs while maintaining democratic oversight of
our energy system.

 
PRIOR LEGISLATIVE HISTORY:;
This is a new bill

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
Immediate.

2019-S7243 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7243
 
                             I N  S E N A T E
 
                             January 13, 2020
                                ___________
 
 Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
   printed to be committed to the Committee on  Energy  and  Telecommuni-
   cations
 
 AN  ACT  to amend the public authorities law and the public service law,
   in relation to providing the New York power authority with  the  right
   of first offer and refusal for certain renewable generation facilities
   and  any  power or energy created by such renewable generation facili-
   ties; bans energy services companies; and to repeal certain provisions
   of the general business law relating thereto
 
   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 two new subdivisions 28 and 29 to read as follows:
   28.  (A)  TO  PURCHASE,  FINANCE,  PLAN,  DESIGN,  ENGINEER,  ACQUIRE,
 CONSTRUCT,  OPERATE OR MANAGE ANY RENEWABLE GENERATION FACILITY, RENEWA-
 BLE ENERGY GENERATING PROJECT, BATTERY ENERGY STORAGE SYSTEMS, RENEWABLE
 THERMAL ENERGY TECHNOLOGY SUCH AS HEAT PUMPS, SOLAR  THERMAL,  OR  OTHER
 HEATING  OR  COOLING TECHNOLOGIES USING RENEWABLE SOURCES OF ENERGY THAT
 DO NOT EMIT GREENHOUSE GASES, OR ANY POWER OR ENERGY CREATED BY A RENEW-
 ABLE GENERATION FACILITY OR RENEWABLE ENERGY  GENERATION  PROJECT  UNDER
 THE  RIGHT  OF FIRST OFFER AND REFUSAL ESTABLISHED UNDER SECTION TWENTY-
 EIGHT OF THE PUBLIC SERVICE LAW.
   (B) FOR PURPOSES OF THIS  SUBDIVISION,  "RENEWABLE  ENERGY  GENERATING
 PROJECT"  SHALL  MEAN A PROJECT THAT GENERATES POWER AND ENERGY BY MEANS
 OF RENEWABLE ENERGY RESOURCES, OR THAT STORES  AND  SUPPLIES  POWER  AND
 ENERGY  GENERATED  BY  MEANS OF RENEWABLE ENERGY RESOURCES, AND INCLUDES
 THE CONSTRUCTION, INSTALLATION AND/OR OPERATION OF ANCILLARY  FACILITIES
 OR  EQUIPMENT DONE IN CONNECTION WITH ANY SUCH RENEWABLE ENERGY GENERAT-
 ING PROJECTS, PROVIDED, HOWEVER, THAT SUCH TERM SHALL  NOT  INCLUDE  THE
 AUTHORITY'S  SAINT  LAWRENCE HYDROELECTRIC PROJECT OR NIAGARA HYDROELEC-
 TRIC PROJECT.
   29. TO SELL OR PROVIDE ENERGY SERVICES TO END-USE CUSTOMERS USING  THE
 TRANSMISSION  OR  DISTRIBUTION  SYSTEM OF A UTILITY. ANY POWER OR ENERGY
 SOLD UNDER THIS SUBDIVISION SHALL BE MADE ENTIRELY FROM RENEWABLE ENERGY
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD13943-03-9

 S. 7243                             2
 
 RESOURCES. FOR THE  PURPOSES  OF  THIS  SUBDIVISION,  "RENEWABLE  ENERGY
 RESOURCES"  MEANS  SOLAR POWER, WIND POWER, HYDROELECTRIC, AND ANY OTHER
 GENERATION RESOURCE AUTHORIZED BY ANY RENEWABLE ENERGY STANDARD  ADOPTED
 BY  THE  STATE  FOR  THE  PURPOSE OF IMPLEMENTING ANY STATE CLEAN ENERGY
 STANDARD.
   § 2. The public service law is amended by adding a new section  28  to
 read as follows:
   §  28.  NEW YORK POWER AUTHORITY RIGHT OF FIRST OFFER AND REFUSAL. THE
 NEW YORK POWER AUTHORITY, AS ESTABLISHED BY TITLE ONE OF ARTICLE FIVE OF
 THE PUBLIC AUTHORITIES LAW, SHALL BE ALLOWED TO MATCH THE PURCHASE PRICE
 OF  ANY  RENEWABLE  GENERATION  FACILITY,  RENEWABLE  ENERGY  GENERATION
 PROJECT AND ANY POWER OR ENERGY CREATED BY A RENEWABLE GENERATION FACIL-
 ITY  OR  RENEWABLE  ENERGY  GENERATION  PROJECT.  IN THE EVENT THAT SUCH
 AUTHORITY MATCHES SUCH PURCHASE PRICE, SUCH AUTHORITY SHALL  ASSUME  THE
 ROLE OF PURCHASER OF THE RENEWABLE GENERATION FACILITY, RENEWABLE ENERGY
 GENERATION  PROJECT OR ANY POWER OR ENERGY CREATED BY A RENEWABLE GENER-
 ATION FACILITY OR RENEWABLE ENERGY GENERATION PROJECT.
   § 3. Section 349-d of the general business law is REPEALED.
   § 4. Paragraph (a) of subdivision 27 of section  1005  of  the  public
 authorities  law,  as added by section 2 of part LL of chapter 58 of the
 laws of 2019, is amended to read as follows:
   (a) Notwithstanding any other  provision  of  this  title,  as  deemed
 feasible  and  advisable by the trustees, the authority is authorized to
 undertake the following actions when it deems it necessary or  desirable
 to  address the energy-related needs of any (i) authority customer, (ii)
 public entity, or (iii) CCA community:
   (1) (A) supply power  and  energy  procured  from  competitive  market
 sources  to any (i) authority customer, (ii) public entity, or (iii) CCA
 community through  the  supply  of  such  products  through  an  [energy
 services  company  or  other]  entity  that  is authorized by the public
 service commission to procure and sell energy products  to  participants
 of a CCA program, provided, however, that the authority shall not supply
 at  any  point  more than a total of four hundred megawatts of power and
 energy to authority  customers  and  public  entities  pursuant  to  the
 authority of this clause;
   (B)  supply  renewable power, energy, or related credits or attributes
 procured through a competitive process, from competitive market sources,
 or through negotiation when a competitive procurement is not  reasonably
 feasible  and  such  products  can be procured on reasonably competitive
 terms to (i) any authority customer, (ii) any public  entity,  or  (iii)
 any CCA community through the supply of such products through an [energy
 services  company  or  other]  entity  that  is authorized by the public
 service commission to procure and sell energy products  to  participants
 of a CCA program; and
   (2)  (A) alone or jointly with one or more other entities, finance the
 development of renewable energy generating projects that are located  in
 the  state,  including  its territorial waters, and/or on property or in
 waters under the jurisdiction or  regulatory  authority  of  the  United
 States,  (B)  purchase  power,  energy  or related credits or attributes
 produced from such renewable energy generating projects, and  (C)  allo-
 cate  and sell any such products to (i) any authority customer, (ii) any
 public entity, and (iii) any CCA community through [an] A NOT-FOR-PROFIT
 energy services company or other entity that is authorized by the public
 service commission to procure and sell energy products  to  participants
 of a CCA program, provided that the authority shall not, pursuant to the
 authority  in  this subparagraph, finance more than six renewable energy

 S. 7243                             3
 
 generation projects and have a per-project electric generating  capacity
 in excess of twenty-five megawatts.
   §  5.  Subdivision 5 of section 44 of the public service law, as added
 by chapter 359 of the laws of 2009, is amended to read as follows:
   5. At least once a year,  every  utility  corporation,  NOT-FOR-PROFIT
 energy services company or municipality shall provide its customers with
 a  notice  that  billing statements are available in large print format.
 Upon written request by a customer, a utility corporation,  NOT-FOR-PRO-
 FIT energy services company or municipality shall provide the customer's
 billing  statements  in  the large print format commencing no later than
 sixty days after the date upon which the  request  is  received  by  the
 utility  corporation[,  energy  services  company]  or municipality. The
 provisions of this subdivision shall apply only to  printed  statements.
 For  the  purposes  of  this section, "large print" shall mean a printed
 font size of sixteen or greater to illuminate billing  information.  For
 the  purposes  of this section, "NOT-FOR-PROFIT energy services company"
 or "NOT-FOR-PROFIT ESCO" shall mean [an] A NOT-FOR-PROFIT entity  eligi-
 ble  to sell energy services to end-use customers using the transmission
 or distribution system of a utility corporation.
   § 6. Nothing in this act is intended to limit, impair, or  affect  the
 legal  authority  of  the power authority of the state of New York under
 any other provision of title 1 of article 5 of  the  public  authorities
 law.
   §  7. This act shall take effect immediately; provided that the amend-
 ments to subdivision 27 of section 1005 of the  public  authorities  law
 made  by  section  four  of this act shall not affect the repeal of such
 subdivision and shall be deemed repealed therewith.

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Senate Bill S7243

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Sponsored By

Kevin S. Parker