S T A T E O F N E W Y O R K
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9035
I N A S S E M B L Y
January 21, 2022
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Introduced by M. of A. THIELE, ENGLEBRIGHT -- read once and referred to
the Committee on Governmental Operations
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
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
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13601-08-1
A. 9035 2
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
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
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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.
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
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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.