S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7576--A
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             December 8, 2021
                                ___________
 
 Introduced  by Sen. GAUGHRAN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules  --  recommitted  to
   the  Committee  on Investigations and Government Operations in accord-
   ance with Senate Rule 6, sec. 8 -- recommitted  to  the  Committee  on
   Investigations  and  Government  Operations  in accordance with Senate
   Rule 6, sec. 8
 
 AN ACT to amend the legislative  law,  in  relation  to  establishing  a
   legislative commission on the future of the Long Island Power Authori-
   ty
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The legislative law is amended by adding a new section 83-n
 to read as follows:
   § 83-N. LEGISLATIVE COMMISSION ON THE FUTURE OF THE LONG ISLAND  POWER
 AUTHORITY. 1. THE LEGISLATURE HEREBY FINDS AND DECLARES THAT CHAPTER 517
 OF THE LAWS OF 1986 CREATED THE LONG ISLAND POWER AUTHORITY (LIPA). SAID
 AUTHORITY  WAS  CREATED,  IN  PART,  BECAUSE THE DECISIONS BY LILCO, THE
 PRIVATE UTILITY THAT PROVIDED ELECTRICITY TO LONG  ISLAND  AND  PART  OF
 QUEENS,  "TO  COMMENCE  CONSTRUCTION OF THE SHOREHAM NUCLEAR POWER PLANT
 AND THEREAFTER TO CONTINUE SUCH CONSTRUCTION WERE  IMPRUDENT".  FURTHER,
 THE  LEGISLATURE  FOUND IN CHAPTER 517 OF THE LAWS OF 1986 THAT "A SITU-
 ATION THREATENING THE ECONOMY, HEALTH AND SAFETY EXISTS IN  THE  SERVICE
 AREA". ONE OF THE TWO EXPRESS PURPOSES OF THE ACT WAS THE CLOSURE OF THE
 SHOREHAM  NUCLEAR POWER PLANT. IN 1992, LIPA BOUGHT THE SHOREHAM NUCLEAR
 POWER PLANT. THE PLANT WAS FULLY DECOMMISSIONED IN 1994.
   THE SECOND PURPOSE OF SUCH CHAPTER 517 WAS TO  REPLACE  LILCO  WITH  A
 PUBLICLY  OWNED  POWER AUTHORITY. THE LEGISLATURE FOUND THAT "THERE IS A
 LACK OF CONFIDENCE THAT THE NEEDS OF THE RESIDENTS AND OF  COMMERCE  AND
 INDUSTRY  IN THE SERVICE AREA FOR ELECTRICITY CAN BE SUPPLIED IN A RELI-
 ABLE, EFFICIENT AND ECONOMIC MANNER BY THE LONG ISLAND LIGHTING  COMPANY
 (HEREINAFTER REFERRED TO AS "LILCO")" AND "SUCH MATTERS OF STATE CONCERN
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD13601-07-1
              

 S. 7576--A                          2
 
 BEST  CAN  BE DEALT WITH BY REPLACING SUCH INVESTOR OWNED UTILITY WITH A
 PUBLICLY OWNED POWER AUTHORITY."
   IN  1995,  LIPA REPLACED LILCO AS THE ELECTRIC COMPANY FOR ITS SERVICE
 AREA. HOWEVER, LIPA WAS NEVER ESTABLISHED  AS  A  TRUE  "PUBLICLY  OWNED
 POWER  AUTHORITY"  AS  ORIGINALLY  ENVISIONED  BY THE STATE LEGISLATURE.
 RATHER, SINCE 1995, LIPA HAS OPTED FOR A  THIRD-PARTY  MANAGEMENT  MODEL
 WHEREBY  LIPA  CONTRACTS  ITS  RESPONSIBILITY TO MANAGE THE UTILITY TO A
 PRIVATE, INVESTOR OWNED UTILITY COMPANY.
   LIPA IS THE ONLY UTILITY IN THE NATION THAT IS OPERATED UNDER A THIRD-
 PARTY MANAGEMENT MODEL. THIS MODEL HAS REPEATEDLY FAILED ITS  CUSTOMERS.
 THERE  HAS  BEEN  A LACK OF TRANSPARENCY, OVERSIGHT, AND ACCOUNTABILITY.
 THIS FAILURE HAS BEEN MOST DRAMATICALLY EVIDENCED  IN  THE  UNACCEPTABLE
 STORM RESPONSE BY LIPA AND ITS THIRD-PARTY CONTRACTORS DURING SUPERSTORM
 SANDY IN 2012 AND TROPICAL STORM ISAIAS IN 2020.
   AFTER MORE THAN 25 YEARS OF UNSATISFACTORY MANAGEMENT UNDER THE THIRD-
 PARTY  MANAGEMENT  MODEL, A BETTER ALTERNATIVE MUST BE IMPLEMENTED. THAT
 INQUIRY MUST BEGIN WITH THE ORIGINAL INTENT OF CHAPTER 517, WHEREBY LIPA
 WAS TO DIRECTLY MANAGE AND OPERATE THE UTILITY AS A  TRUE  PUBLIC  POWER
 UTILITY.   INITIAL INVESTIGATIONS BY LIPA AFTER TROPICAL STORM ISAIAS IN
 2020-2021 INDICATE THAT BOTH RATEPAYER SAVINGS AND INCREASED  MANAGEMENT
 EFFICIENCIES COULD BE ACHIEVED THROUGH THE PUBLIC POWER MODEL.
   CONSEQUENTLY,  IT  IS  THE  PURPOSE  OF  THIS SECTION TO IMPLEMENT THE
 ORIGINAL VISION FOR LIPA INTENDED BY CHAPTER 517 OF THE LAWS OF 1986, AS
 A PUBLICLY OWNED POWER  COMPANY.    THE  LEGISLATURE  HEREBY  CREATES  A
 COMMISSION  TO PROVIDE THE LEGISLATURE WITH THE SPECIFIC ACTIONS, LEGIS-
 LATION, AND TIMELINE NECESSARY TO RESTRUCTURE LIPA INTO A TRUE  PUBLICLY
 OWNED  POWER  AUTHORITY.  THE PUBLIC MUST PARTICIPATE IN THAT PROCESS SO
 THAT THE NEW LIPA BECOMES TRANSPARENT WITH PROPER OVERSIGHT AND ACCOUNT-
 ABILITY. THE LEGISLATIVE COMMISSION SHALL SUBMIT ITS FINAL REPORT TO THE
 LEGISLATURE NO LATER THAN APRIL FIRST, TWO THOUSAND TWENTY-THREE.
   2. A LEGISLATIVE COMMISSION IS HEREBY ESTABLISHED TO  INVESTIGATE  AND
 REPORT  TO  THE LEGISLATURE ON THE ESTABLISHMENT OF A PUBLIC POWER MODEL
 FOR THE OPERATION OF LIPA, WHEREBY THE AUTHORITY WOULD DIRECTLY  OPERATE
 THE  UTILITY  AS  A  TRUE  PUBLIC  POWER AUTHORITY. THE COMMISSION SHALL
 REPORT TO THE LEGISLATURE ON  THE  SPECIFIC  ACTIONS,  LEGISLATION,  AND
 TIMELINE  NECESSARY TO RESTRUCTURE LIPA INTO A TRUE PUBLICLY OWNED POWER
 AUTHORITY.  THE COMMISSION SHALL CONSIDER: (A) THE METHOD OF  GOVERNANCE
 OF  THE PUBLIC AUTHORITY; (B) IMPROVED TRANSPARENCY, ACCOUNTABILITY, AND
 PUBLIC INVOLVEMENT; (C) IMPROVED RELIABILITY  OF  THE  SYSTEM;  (D)  THE
 IMPACT  ON  ELECTRIC  RATES; (E) IMPROVED STORM RESPONSE; (F) THE POWERS
 REQUIRED BY LIPA TO MORE EFFECTIVELY OPERATE THE UTILITY; (G) THE  OVER-
 SIGHT  ROLE  OF  THE DEPARTMENT OF PUBLIC SERVICE AND THE PUBLIC SERVICE
 COMMISSION OVER LIPA'S OPERATION; (H)  THE  IMPACT  ON  EXISTING  BONDED
 INDEBTEDNESS;  (I)  IMPROVED  LONG  TERM ENERGY PLANNING; (J) COMPLIANCE
 WITH THE GOALS OF THE NEW YORK STATE CLIMATE  LEADERSHIP  AND  COMMUNITY
 PROTECTION  ACT;  (K)  INCREASED RELIANCE ON RENEWABLE ENERGY SOURCES TO
 PRODUCE ELECTRICITY; (L) TAXATION AND PAYMENTS IN LIEU OF TAXES; (M) THE
 SPECIAL NEEDS OF COMMUNITIES THAT ARE  OR  HAVE  BEEN  IMPACTED  BY  THE
 SITING OF POWER GENERATING FACILITIES; AND (N) ANY OTHER MATTER RELEVANT
 TO  THE ESTABLISHMENT OF A PUBLIC POWER MODEL FOR THE OPERATION OF LIPA.
 IN ITS REPORT TO THE LEGISLATURE, THE COMMISSION SHALL PROVIDE  FOR  THE
 IMPLEMENTATION  OF THE PUBLIC POWER MODEL BY LIPA NO LATER THAN DECEMBER
 THIRTY-FIRST, TWO THOUSAND TWENTY-FIVE.
   3. THE COMMISSION SHALL CONSIST OF EIGHT MEMBERS TO  BE  APPOINTED  AS
 FOLLOWS: THREE MEMBERS OF THE SENATE SHALL BE APPOINTED BY THE TEMPORARY
 PRESIDENT  OF  THE  SENATE;  THREE  MEMBERS  OF  THE  ASSEMBLY  SHALL BE
 S. 7576--A                          3
 
 APPOINTED BY THE SPEAKER OF THE ASSEMBLY; ONE MEMBER OF THE SENATE SHALL
 BE APPOINTED BY THE MINORITY LEADER OF THE SENATE; AND ONE MEMBER OF THE
 ASSEMBLY SHALL BE APPOINTED BY THE MINORITY LEADER OF THE ASSEMBLY.  ANY
 VACANCY THAT OCCURS IN THE COMMISSION SHALL BE FILLED IN THE SAME MANNER
 IN  WHICH THE ORIGINAL APPOINTMENT WAS MADE. CO-CHAIRS OF THE COMMISSION
 SHALL BE DESIGNATED BY THE TEMPORARY PRESIDENT OF  THE  SENATE  AND  THE
 SPEAKER  OF  THE ASSEMBLY, RESPECTIVELY. NO MEMBER, OFFICER, OR EMPLOYEE
 OF THE COMMISSION SHALL BE DISQUALIFIED FROM HOLDING  ANY  OTHER  PUBLIC
 OFFICE  OR  EMPLOYMENT,  NOR  SHALL HE OR SHE FORFEIT ANY SUCH OFFICE OR
 EMPLOYMENT BY REASON OF HIS OR HER APPOINTMENT HEREUNDER,  NOTWITHSTAND-
 ING  THE PROVISIONS OF ANY GENERAL, SPECIAL, OR LOCAL LAW, ORDINANCE, OR
 CITY CHARTER.
   4. THE COMMISSION SHALL ESTABLISH AN ADVISORY  COMMITTEE  TO  ACTIVELY
 ASSIST  AND ADVISE THE COMMISSION IN THE PREPARATION OF THE PUBLIC POWER
 REPORT REQUIRED TO BE PREPARED PURSUANT TO THIS SECTION.  THE  COMMITTEE
 SHALL  CONSIST  OF NOT MORE THAN FIFTEEN MEMBERS WHICH SHALL INCLUDE BUT
 NOT BE LIMITED TO  REPRESENTATIVES  OF  ORGANIZATIONS  AND  INSTITUTIONS
 REPRESENTING  BUSINESS,  LABOR,  LOCAL  GOVERNMENT,  INDIAN  NATIONS AND
 TRIBES, ECONOMIC DEVELOPMENT,  ENVIRONMENTAL,  ENERGY,  SOCIAL  JUSTICE,
 CONSUMER,  CIVIC,  SCHOOL  DISTRICTS  OR HIGHER EDUCATION INTERESTS. THE
 COMMITTEE BY A MAJORITY VOTE SHALL ELECT A CHAIRPERSON.  THE  COMMISSION
 SHALL  MEET  PERIODICALLY  WITH  THE  ADVISORY COMMITTEE, MAKE AVAILABLE
 WORKING DRAFT AND OTHER DOCUMENTS, AND SHALL  PROVIDE  SERVICES  TO  THE
 ADVISORY  COMMITTEE  AS  ARE  NECESSARY AND APPROPRIATE TO CARRY OUT ITS
 FUNCTIONS UNDER THIS SECTION. MEMBERS OF THE ADVISORY COMMITTEE SHALL BE
 RESIDENTS OF THE SERVICE AREA.
   5. THE COMMISSION MAY EMPLOY AND AT PLEASURE REMOVE SUCH PERSONNEL  AS
 IT  MAY DEEM NECESSARY FOR THE PERFORMANCE OF THE COMMISSION'S FUNCTIONS
 AND FIX THEIR COMPENSATION WITHIN THE AMOUNT APPROPRIATED THEREFOR.  THE
 COMMISSION  MAY  HOLD PUBLIC AND PRIVATE HEARINGS AND OTHERWISE HAVE ALL
 OF THE POWERS OF A LEGISLATIVE COMMITTEE UNDER THIS CHAPTER. THE MEMBERS
 OF THE COMMISSION SHALL RECEIVE  NO  COMPENSATION  FOR  THEIR  SERVICES,
 EXCEPT AS PROVIDED PURSUANT TO SECTION FIVE-A OF THIS CHAPTER, BUT SHALL
 BE  ALLOWED THEIR ACTUAL AND NECESSARY EXPENSES INCURRED IN THE PERFORM-
 ANCE OF THEIR DUTIES HEREUNDER.
   6. EMPLOYEES OF THE COMMISSION SHALL BE CONSIDERED TO BE EMPLOYEES  OF
 THE LEGISLATURE FOR ALL PURPOSES.
   7.  THE COMMISSION MAY REQUEST AND SHALL RECEIVE FROM ANY SUBDIVISION,
 DEPARTMENT, BOARD, BUREAU, COMMISSION, OFFICE, AGENCY OR  OTHER  INSTRU-
 MENTALITY  OF THE STATE OR OF ANY POLITICAL SUBDIVISION THEREOF, INCLUD-
 ING BUT NOT LIMITED TO THE DEPARTMENT OF PUBLIC SERVICE AND  THE  PUBLIC
 SERVICE  COMMISSION,  SUCH  FACILITIES,  ASSISTANCE AND DATA AS IT DEEMS
 NECESSARY OR DESIRABLE FOR  THE  PROPER  EXECUTION  OF  ITS  POWERS  AND
 DUTIES.  THE  OFFICE  OF  THE  STATE COMPTROLLER MAY, AT ITS DISCRETION,
 PROVIDE TO THE COMMISSION SUCH FACILITIES, ASSISTANCE, AND DATA  AS  MAY
 BE REQUESTED BY THE COMMISSION.
   8.  THE COMMISSION IS HEREBY AUTHORIZED AND EMPOWERED TO MAKE AND SIGN
 ANY AGREEMENTS, AND TO DO AND PERFORM ANY ACTS THAT  MAY  BE  NECESSARY,
 DESIRABLE  OR  PROPER TO CARRY OUT THE PURPOSES AND OBJECTIVES SET FORTH
 IN THIS SECTION.
   9. THE COMMISSION SHALL HOLD AT LEAST ONE PUBLIC HEARING WITH A PUBLIC
 COMMENT PERIOD IN EACH OF THE COUNTIES COMPRISING THE  SERVICE  AREA  OF
 THE  LONG ISLAND POWER AUTHORITY ON THE ESTABLISHMENT OF PUBLIC POWER BY
 SEPTEMBER THIRTIETH, TWO THOUSAND TWENTY-TWO AND BEFORE ISSUING A  DRAFT
 REPORT.
 S. 7576--A                          4
 
   10.  NO LATER THAN DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY-TWO, THE
 COMMISSION SHALL ISSUE A DRAFT REPORT TO THE MEMBERS OF THE  LEGISLATURE
 REGARDING  THE ESTABLISHMENT OF A PUBLIC POWER MODEL FOR THE LONG ISLAND
 POWER AUTHORITY. THE COMMISSION SHALL HOLD AT LEAST ONE  PUBLIC  HEARING
 WITH  A  PUBLIC  COMMENT  PERIOD  IN EACH OF THE COUNTIES COMPRISING THE
 SERVICE AREA OF THE LONG ISLAND POWER AUTHORITY ON THE DRAFT  REPORT  NO
 LATER  THAN  FEBRUARY  FIFTEENTH,  TWO  THOUSAND TWENTY-THREE AND BEFORE
 ISSUING A FINAL REPORT.
   11. NO LATER THAN FEBRUARY FIRST, TWO THOUSAND TWENTY-THREE, THE COMP-
 TROLLER SHALL HAVE THE DISCRETION TO REVIEW THE DRAFT REPORT  AND  ISSUE
 TO   THE  LEGISLATURE  ANY  RECOMMENDATIONS  RELATIVE  TO  THE  FINDINGS
 CONTAINED IN THE DRAFT REPORT WHICH RELATES TO THE  ESTABLISHMENT  OF  A
 PUBLIC POWER MODEL FOR THE LONG ISLAND POWER AUTHORITY.
   12.  NO LATER THAN APRIL FIRST, TWO THOUSAND TWENTY-THREE, THE COMMIS-
 SION SHALL ISSUE A FINAL  REPORT  TO  THE  MEMBERS  OF  THE  LEGISLATURE
 REGARDING  THE ESTABLISHMENT OF A PUBLIC POWER MODEL FOR THE LONG ISLAND
 POWER AUTHORITY. SUCH REPORT SHALL PROVIDE ANY LEGISLATION  REQUIRED  TO
 IMPLEMENT THE PUBLIC POWER MODEL.
   § 2. 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
 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 herein.
   § 3. This act shall take effect immediately; provided,  however,  that
 the amendments to article 5-A of the legislative law made by section one
 of  this  act  shall  survive  the repeal of such article as provided in
 section 13 of chapter 141 of the laws of 1994, as amended.