S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6455--A
     Cal. No. 1179
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                              April 29, 2021
                                ___________
 
 Introduced  by Sens. KAMINSKY, GAUGHRAN -- read twice and ordered print-
   ed, and when printed to be committed to the Committee  on  Energy  and
   Telecommunications  -- reported favorably from said committee, ordered
   to first and second report, amended on second  report,  ordered  to  a
   third  reading, and to be reprinted as amended, retaining its place in
   the order of third reading
 
 AN ACT to amend part B of chapter 173 of the laws of  2013  relating  to
   the issuance of  securitized  restructuring  bonds  to  refinance  the
   outstanding debt of the Long Island power authority,  in  relation  to
   the    utility   debt   securitization authority;  and  in relation to
   permitting the issuance of securitized restructuring bonds to  finance
   system resiliency costs
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Legislative findings.  The  legislature  hereby  finds  and
 determines  that  the  establishment  of the utility debt securitization
 authority under part B of chapter 173 of the laws of 2013,  as  amended,
 permitted  the  issuance of securitized restructuring bonds on favorable
 terms which resulted in lower aggregate distribution,  transmission  and
 transition  charges  to Long Island ratepayers, compared to other avail-
 able alternatives, and the purposes of such act will be further advanced
 by amending such act to permit the issuance  of  additional  such  bonds
 subject  to  a  limit on the outstanding principal amount thereof and to
 allow such bonds to be issued to refund bonds of the utility debt  secu-
 ritization authority. The legislature finds and determines that improve-
 ments  to  the  transmission  and distribution system of the Long Island
 Power Authority to increase resiliency and better withstand the  effects
 of  climate  change  are  necessary,  and  that  issuance of securitized
 restructuring bonds by the Utility  Debt  Securitization  Authority  may
 allow  the  funding of such improvements on more favorable terms than if
 such bonds were issued by the Long Island Power Authority. The  legisla-
 ture  hereby  further finds and determines that it is in the interest of
 Long Island ratepayers for the comptroller to  exercise  oversight  over
              

 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10395-03-1

 S. 6455--A                          2
 
 the  issuance  of  securitized restructuring bonds and contracts entered
 into on behalf of the service provider.
   §  2.  Subdivision 2 of section 2 of part B of chapter 173 of the laws
 of 2013 relating to the issuance of securitized restructuring  bonds  to
 refinance  the  outstanding  debt of the Long Island power authority, is
 amended to read as follows:
   2. "Approved restructuring costs" means, to  the  extent  approved  as
 such  under  a restructuring cost financing order, (a) costs of purchas-
 ing, redeeming or defeasing a portion of outstanding debt of the author-
 ity OR THE RESTRUCTURING BOND ISSUER, including bonds and  notes  issued
 by  the  authority  OR THE RESTRUCTURING BOND ISSUER, debt issued by the
 New York state energy research and development authority for the benefit
 of the LILCO; (b) costs of terminating interest rate swap contracts  and
 other  financial  contracts  entered  into  by or for the benefit of the
 authority and related to debt obligations of the authority; (c)  rebate,
 yield  reduction  payments  and  any other amounts payable to the United
 States Treasury or to  the  Internal  Revenue  Service  to  preserve  or
 protect the federal tax-exempt status of outstanding debt obligations of
 the  authority;  [and]  (d)  upfront  financing  costs  associated  with
 restructuring bonds; AND (E) SYSTEM RESILIENCY COSTS.
   § 3. Subdivision 11 of section 2 of part B of chapter 173 of the  laws
 of  2013  relating to the issuance of securitized restructuring bonds to
 refinance the outstanding debt of the Long Island  power  authority,  as
 amended  by  section 2-a of part W of chapter 58 of the laws of 2015, is
 amended to read as follows:
   11. "Restructuring bonds" means bonds or other  evidences  of  indebt-
 edness  that  are  issued pursuant to an indenture or other agreement of
 the restructuring bond issuer under a restructuring cost financing order
 (a) the proceeds of which are used, directly or indirectly, to  recover,
 finance, or refinance approved restructuring costs, (b) that are direct-
 ly  or  indirectly  secured by, or payable from, restructuring property,
 AND (c) that have a term no longer than thirty years [and (d) that  have
 a  final scheduled maturity date no later than the final scheduled matu-
 rity date of the authority bonds purchased, redeemed  or  defeased  with
 the proceeds of such restructuring bonds].
   §  4.  Section 2 of part B of chapter 173 of the laws of 2013 relating
 to the issuance of securitized  restructuring  bonds  to  refinance  the
 outstanding  debt  of  the  Long  Island  power authority, is amended by
 adding a new subdivision 17-a to read as follows:
   17-A. "SYSTEM RESILIENCY COSTS" MEANS, TO THE EXTENT APPROVED AS  SUCH
 UNDER A RESTRUCTURING COST FINANCING ORDER, COSTS OF REBUILDING, IMPROV-
 ING  OR  CONSTRUCTING  TRANSMISSION  AND  DISTRIBUTION  SYSTEM ASSETS TO
 INCREASE RESILIENCY OF SUCH ASSETS, BETTER WITHSTAND CHANGES IN CLIMATE,
 ABSORB IMPACTS FROM OUTAGE-INDUCING EVENTS,  AND  RECOVER  QUICKLY  FROM
 OUTAGES INCLUDING BUT NOT LIMITED TO, IMPROVEMENTS TO AND REPLACEMENT OF
 POLES  AND  WIRES,  MOVING POWER LINES UNDERGROUND, RAISING SUBSTATIONS,
 CONSTRUCTING FLOOD BARRIERS, AND SYSTEM AUTOMATION AND COSTS OF PURCHAS-
 ING, REDEEMING OR DEFEASING DEBT OF THE AUTHORITY  INCURRED  TO  FINANCE
 SUCH  COSTS  OR  REIMBURSING  THE AUTHORITY FOR AMOUNTS ALREADY SPENT ON
 SUCH COSTS.
   § 5. Subdivision 1 of section 3 of part B of chapter 173 of  the  laws
 of  2013  relating to the issuance of securitized restructuring bonds to
 refinance the outstanding debt of the Long Island  power  authority,  is
 amended to read as follows:
   1. Standard. The authority may, SUBJECT TO APPROVAL OF THE COMPTROLLER
 IN  CONSULTATION  WITH  THE  DEPARTMENT  OF  PUBLIC  SERVICE,  prepare a

 S. 6455--A                          3
 
 restructuring cost financing  order  (A)  for  the  purpose  of  issuing
 restructuring  bonds  to  refinance outstanding debt of the authority OR
 THE RESTRUCTURING BOND ISSUER based on a finding that such bond issuance
 is  expected  to result in savings to consumers of electric transmission
 and distribution services in the service area on  a  net  present  value
 basis;  OR (B) FOR THE PURPOSE OF ISSUING RESTRUCTURING BONDS TO FINANCE
 SYSTEM RESILIENCY COSTS BASED ON A FINDING THAT FUNDING OF  SUCH  SYSTEM
 RESILIENCY  COSTS BY THE ISSUER WOULD RESULT IN LOWER COSTS TO CONSUMERS
 OF ELECTRIC TRANSMISSION AND DISTRIBUTION SERVICES IN THE  SERVICE  AREA
 ON  A  NET  PRESENT  VALUE  BASIS  THAN  FUNDING  OF  SUCH  COSTS BY THE
 AUTHORITY.
   § 6. Paragraph (a) of subdivision 1 of section 4 of part B of  chapter
 173 of the laws of 2013 relating to the issuance of securitized restruc-
 turing  bonds to refinance the outstanding debt of the Long Island power
 authority, as amended by section 3 of part W of chapter 58 of  the  laws
 of 2015, is amended to read as follows:
   (a)  For  the purpose of effectuating the purposes declared in section
 one of this act, there is hereby created  a  special  purpose  corporate
 municipal  instrumentality  of  the  state  to be known as "utility debt
 securitization authority", which shall be a body corporate and  politic,
 a  political subdivision of the state, and a public benefit corporation,
 exercising essential governmental and public powers for the good of  the
 public.    Such restructuring bond issuer shall not be created or organ-
 ized, and its operations shall not be  conducted,  for  the  purpose  of
 making a profit. No part of the revenues or assets of such restructuring
 bond  issuer  shall  inure  to the benefit of or be distributable to its
 trustees or officers or any other  private  persons,  except  as  herein
 provided  for actual services rendered.  [The aggregate principal amount
 of restructuring bonds authorized to be  issued  by  restructuring  bond
 issuers created pursuant to this act shall not exceed] NO MORE THAN four
 billion  five  hundred  million  dollars  AGGREGATE  PRINCIPAL AMOUNT OF
 RESTRUCTURING BONDS ISSUED BY RESTRUCTURING BOND ISSUERS CREATED  PURSU-
 ANT  TO  THIS  ACT SHALL BE OUTSTANDING AT ANY TIME. FOR THE PURPOSES OF
 THIS SECTION, RESTRUCTURING BONDS SHALL NOT BE DEEMED TO BE  OUTSTANDING
 IF  THEY HAVE MATURED OR IF THEY HAVE BEEN PAID OR REDEEMED OR PROVISION
 FOR PAYMENT OR REDEMPTION OF SUCH BONDS SHALL HAVE BEEN MADE.
   § 7. Subparagraphs (i) and (iv) of paragraph (a) of subdivision  2  of
 section  4  of part B of chapter 173 of the laws of 2013 relating to the
 issuance  of   securitized   restructuring   bonds   to   refinance  the
 outstanding debt of the Long Island power authority, subparagraph (i) as
 amended and subparagraph (iv) as added by section 4 of part W of chapter
 58 of the laws of 2015,  are  amended to read as follows:
   (i) issue the restructuring bonds contemplated by a restructuring cost
 financing  order,  and  use the proceeds thereof to purchase or acquire,
 and to own, hold and use  restructuring  property  or  to  pay  or  fund
 upfront  financing costs [provided, however, that the restructuring bond
 issuer shall not issue restructuring bonds for the purpose of  refunding
 other restructuring bond];
   (iv)  [only]  issue  restructuring  bonds of which the final scheduled
 maturity date of any series of restructuring bonds  shall  be  no  later
 than  [the  final  scheduled  maturity date of the authority bonds to be
 purchased, redeemed or defeased with the proceeds of such  restructuring
 bonds]  THIRTY  YEARS  FROM  THE  DATE OF ISSUANCE OF SUCH RESTRUCTURING
 BONDS.
   § 8. This act shall take effect immediately.

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6455--B
     Cal. No. 1179
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                              April 29, 2021
                                ___________
 
 Introduced  by Sens. KAMINSKY, GAUGHRAN -- read twice and ordered print-
   ed, and when printed to be committed to the Committee  on  Energy  and
   Telecommunications  -- reported favorably from said committee, ordered
   to first and second report, amended on second  report,  ordered  to  a
   third  reading, and to be reprinted as amended, retaining its place in
   the order of third reading -- reported favorably from said  committee,
   ordered  to  first  and  second  report,  ordered  to a third reading,
   amended and ordered reprinted, retaining its place  in  the  order  of
   third reading
 
 AN  ACT  to  amend part B of chapter 173 of the laws of 2013 relating to
   the issuance of  securitized  restructuring  bonds  to  refinance  the
   outstanding debt of the Long Island power authority,  in  relation  to
   the  utility  debt  securitization authority;   and   in  relation  to
   permitting  the issuance of securitized restructuring bonds to finance
   system resiliency costs
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1.  Legislative  findings.  The  legislature hereby finds and
 determines that the establishment of  the  utility  debt  securitization
 authority  under  part B of chapter 173 of the laws of 2013, as amended,
 permitted the issuance of securitized restructuring bonds  on  favorable
 terms  which  resulted in lower aggregate distribution, transmission and
 transition charges to Long Island ratepayers, compared to  other  avail-
 able alternatives, and the purposes of such act will be further advanced
 by  amending  such  act  to permit the issuance of additional such bonds
 subject to a limit on the outstanding principal amount  thereof  and  to
 allow  such bonds to be issued to refund bonds of the utility debt secu-
 ritization authority. The legislature finds and determines that improve-
 ments to the transmission and distribution system  of  the  Long  Island
 Power  Authority to increase resiliency and better withstand the effects
 of climate change  are  necessary,  and  that  issuance  of  securitized
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD10395-05-1

 S. 6455--B                          2
 
 restructuring  bonds  by  the  Utility Debt Securitization Authority may
 allow the funding of such improvements on more favorable terms  than  if
 such bonds were issued by the Long Island Power Authority.
   §  2.  Subdivision 2 of section 2 of part B of chapter 173 of the laws
 of 2013 relating to the issuance of securitized restructuring  bonds  to
 refinance  the  outstanding  debt of the Long Island power authority, is
 amended to read as follows:
   2. "Approved restructuring costs" means, to  the  extent  approved  as
 such  under  a restructuring cost financing order, (a) costs of purchas-
 ing, redeeming or defeasing a portion of outstanding debt of the author-
 ity OR THE RESTRUCTURING BOND ISSUER, including bonds and  notes  issued
 by  the  authority  OR THE RESTRUCTURING BOND ISSUER, debt issued by the
 New York state energy research and development authority for the benefit
 of the LILCO; (b) costs of terminating interest rate swap contracts  and
 other  financial  contracts  entered  into  by or for the benefit of the
 authority and related to debt obligations of the authority; (c)  rebate,
 yield  reduction  payments  and  any other amounts payable to the United
 States Treasury or to  the  Internal  Revenue  Service  to  preserve  or
 protect the federal tax-exempt status of outstanding debt obligations of
 the  authority;  [and]  (d)  upfront  financing  costs  associated  with
 restructuring bonds; AND (E) SYSTEM RESILIENCY COSTS.
   § 3. Subdivision 11 of section 2 of part B of chapter 173 of the  laws
 of  2013  relating to the issuance of securitized restructuring bonds to
 refinance the outstanding debt of the Long Island  power  authority,  as
 amended  by  section 2-a of part W of chapter 58 of the laws of 2015, is
 amended to read as follows:
   11. "Restructuring bonds" means bonds or other  evidences  of  indebt-
 edness  that  are  issued pursuant to an indenture or other agreement of
 the restructuring bond issuer under a restructuring cost financing order
 (a) the proceeds of which are used, directly or indirectly, to  recover,
 finance, or refinance approved restructuring costs, (b) that are direct-
 ly  or  indirectly  secured by, or payable from, restructuring property,
 AND (c) that have a term no longer than thirty years [and (d) that  have
 a  final scheduled maturity date no later than the final scheduled matu-
 rity date of the authority bonds purchased, redeemed  or  defeased  with
 the proceeds of such restructuring bonds].
   §  4.  Section 2 of part B of chapter 173 of the laws of 2013 relating
 to the issuance of securitized  restructuring  bonds  to  refinance  the
 outstanding  debt  of  the  Long  Island  power authority, is amended by
 adding a new subdivision 17-a to read as follows:
   17-A. "SYSTEM RESILIENCY COSTS" MEANS, TO THE EXTENT APPROVED AS  SUCH
 UNDER A RESTRUCTURING COST FINANCING ORDER, COSTS OF REBUILDING, IMPROV-
 ING  OR  CONSTRUCTING  TRANSMISSION  AND  DISTRIBUTION  SYSTEM ASSETS TO
 INCREASE RESILIENCY OF SUCH ASSETS, BETTER WITHSTAND CHANGES IN CLIMATE,
 ABSORB IMPACTS FROM OUTAGE-INDUCING EVENTS,  AND  RECOVER  QUICKLY  FROM
 OUTAGES INCLUDING BUT NOT LIMITED TO, IMPROVEMENTS TO AND REPLACEMENT OF
 POLES  AND  WIRES,  MOVING POWER LINES UNDERGROUND, RAISING SUBSTATIONS,
 CONSTRUCTING FLOOD BARRIERS, AND SYSTEM AUTOMATION AND COSTS OF PURCHAS-
 ING, REDEEMING OR DEFEASING DEBT OF THE AUTHORITY  INCURRED  TO  FINANCE
 SUCH  COSTS  OR  REIMBURSING  THE AUTHORITY FOR AMOUNTS ALREADY SPENT ON
 SUCH COSTS.
   § 5. Subdivision 1 of section 3 of part B of chapter 173 of  the  laws
 of  2013  relating to the issuance of securitized restructuring bonds to
 refinance the outstanding debt of the Long Island  power  authority,  is
 amended to read as follows:

 S. 6455--B                          3
 
   1. Standard. The authority may, IN CONSULTATION WITH THE DEPARTMENT OF
 PUBLIC SERVICE, prepare a restructuring cost financing order (A) for the
 purpose  of issuing restructuring bonds to refinance outstanding debt of
 the authority OR THE RESTRUCTURING BOND ISSUER based on a  finding  that
 such  bond  issuance  is  expected  to result in savings to consumers of
 electric transmission and distribution services in the service area on a
 net present value basis; OR (B) FOR THE PURPOSE OF ISSUING RESTRUCTURING
 BONDS TO FINANCE SYSTEM RESILIENCY COSTS BASED ON A FINDING THAT FUNDING
 OF SUCH SYSTEM RESILIENCY COSTS BY THE  ISSUER  WOULD  RESULT  IN  LOWER
 COSTS TO CONSUMERS OF ELECTRIC TRANSMISSION AND DISTRIBUTION SERVICES IN
 THE SERVICE AREA ON A NET PRESENT VALUE BASIS THAN FUNDING OF SUCH COSTS
 BY THE AUTHORITY.
   §  6. Paragraph (a) of subdivision 1 of section 4 of part B of chapter
 173 of the laws of 2013 relating to the issuance of securitized restruc-
 turing bonds to refinance the outstanding debt of the Long Island  power
 authority,  as  amended by section 3 of part W of chapter 58 of the laws
 of 2015, is amended to read as follows:
   (a) For the purpose of effectuating the purposes declared  in  section
 one  of  this  act,  there is hereby created a special purpose corporate
 municipal instrumentality of the state to  be  known  as  "utility  debt
 securitization  authority", which shall be a body corporate and politic,
 a political subdivision of the state, and a public benefit  corporation,
 exercising  essential governmental and public powers for the good of the
 public.  Such restructuring bond issuer shall not be created  or  organ-
 ized,  and  its  operations  shall  not be conducted, for the purpose of
 making a profit. No part of the revenues or assets of such restructuring
 bond issuer shall inure to the benefit of or  be  distributable  to  its
 trustees  or  officers  or  any  other private persons, except as herein
 provided for actual services rendered.  [The aggregate principal  amount
 of  restructuring  bonds  authorized  to be issued by restructuring bond
 issuers created pursuant to this act shall not exceed] NO MORE THAN four
 billion five hundred  million  dollars  AGGREGATE  PRINCIPAL  AMOUNT  OF
 RESTRUCTURING  BONDS ISSUED BY RESTRUCTURING BOND ISSUERS CREATED PURSU-
 ANT TO THIS ACT SHALL BE OUTSTANDING AT ANY TIME. FOR  THE  PURPOSES  OF
 THIS  SECTION, RESTRUCTURING BONDS SHALL NOT BE DEEMED TO BE OUTSTANDING
 IF THEY HAVE MATURED OR IF THEY HAVE BEEN PAID OR REDEEMED OR  PROVISION
 FOR PAYMENT OR REDEMPTION OF SUCH BONDS SHALL HAVE BEEN MADE.
   §  7.  Subparagraphs (i) and (iv) of paragraph (a) of subdivision 2 of
 section 4 of part B of chapter 173 of the laws of 2013 relating  to  the
 issuance   of   securitized   restructuring   bonds   to   refinance the
 outstanding debt of the Long Island power authority, subparagraph (i) as
 amended and subparagraph (iv) as added by section 4 of part W of chapter
 58 of the laws of 2015,  are  amended to read as follows:
   (i) issue the restructuring bonds contemplated by a restructuring cost
 financing order, and use the proceeds thereof to  purchase  or  acquire,
 and  to  own,  hold  and  use  restructuring  property or to pay or fund
 upfront financing costs [provided, however, that the restructuring  bond
 issuer  shall not issue restructuring bonds for the purpose of refunding
 other restructuring bond];
   (iv) [only] issue restructuring bonds of  which  the  final  scheduled
 maturity  date  of  any  series of restructuring bonds shall be no later
 than [the final scheduled maturity date of the  authority  bonds  to  be
 purchased,  redeemed or defeased with the proceeds of such restructuring
 bonds] THIRTY YEARS FROM THE DATE  OF  ISSUANCE  OF  SUCH  RESTRUCTURING
 BONDS.
   § 8. This act shall take effect immediately.

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6455--C
     Cal. No. 1179
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                              April 29, 2021
                                ___________
 
 Introduced  by Sens. KAMINSKY, GAUGHRAN -- read twice and ordered print-
   ed, and when printed to be committed to the Committee  on  Energy  and
   Telecommunications  -- reported favorably from said committee, ordered
   to first and second report, amended on second  report,  ordered  to  a
   third  reading, and to be reprinted as amended, retaining its place in
   the order of third reading -- reported favorably from said  committee,
   ordered  to  first  and  second  report,  ordered  to a third reading,
   amended and ordered reprinted, retaining its place  in  the  order  of
   third  reading  --  again amended and ordered reprinted, retaining its
   place in the order of third reading
 
 AN ACT to amend part B of chapter 173 of the laws of  2013  relating  to
   the issuance of  securitized  restructuring  bonds  to  refinance  the
   outstanding debt of the Long Island power authority,  in  relation  to
   the    utility   debt   securitization authority;  and  in relation to
   permitting the issuance of securitized restructuring bonds to  finance
   system resiliency costs
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Legislative findings.  The  legislature  hereby  finds  and
 determines  that  the  establishment  of the utility debt securitization
 authority under part B of chapter 173 of the laws of 2013,  as  amended,
 permitted  the  issuance of securitized restructuring bonds on favorable
 terms which resulted in lower aggregate distribution,  transmission  and
 transition  charges  to Long Island ratepayers, compared to other avail-
 able alternatives, and the purposes of such act will be further advanced
 by amending such act to permit the issuance  of  additional  such  bonds
 subject  to  a  limit on the outstanding principal amount thereof and to
 allow such bonds to be issued to refund bonds of the utility debt  secu-
 ritization authority. The legislature finds and determines that improve-
 ments  to  the  transmission  and distribution system of the Long Island
 Power Authority to increase resiliency and better withstand the  effects
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD10395-08-1

 S. 6455--C                          2
 
 of  climate  change  are  necessary,  and  that  issuance of securitized
 restructuring bonds by the Utility  Debt  Securitization  Authority  may
 allow  the  funding of such improvements on more favorable terms than if
 such  bonds were issued by the Long Island Power Authority. The legisla-
 ture hereby further finds and determines that it is in the  interest  of
 Long  Island  ratepayers  for the comptroller to exercise oversight over
 the issuance of securitized restructuring bonds  and  contracts  entered
 into on behalf of the service provider.
   §  2.  Subdivision 2 of section 2 of part B of chapter 173 of the laws
 of 2013 relating to the issuance of securitized restructuring  bonds  to
 refinance  the  outstanding  debt of the Long Island power authority, is
 amended to read as follows:
   2. "Approved restructuring costs" means, to  the  extent  approved  as
 such  under  a restructuring cost financing order, (a) costs of purchas-
 ing, redeeming or defeasing a portion of outstanding debt of the author-
 ity OR THE RESTRUCTURING BOND ISSUER, including bonds and  notes  issued
 by  the  authority  OR THE RESTRUCTURING BOND ISSUER, debt issued by the
 New York state energy research and development authority for the benefit
 of the LILCO; (b) costs of terminating interest rate swap contracts  and
 other  financial  contracts  entered  into  by or for the benefit of the
 authority and related to debt obligations of the authority; (c)  rebate,
 yield  reduction  payments  and  any other amounts payable to the United
 States Treasury or to  the  Internal  Revenue  Service  to  preserve  or
 protect the federal tax-exempt status of outstanding debt obligations of
 the  authority;  [and]  (d)  upfront  financing  costs  associated  with
 restructuring bonds; AND (E) SYSTEM RESILIENCY COSTS.
   § 3. Subdivision 11 of section 2 of part B of chapter 173 of the  laws
 of  2013  relating to the issuance of securitized restructuring bonds to
 refinance the outstanding debt of the Long Island  power  authority,  as
 amended  by  section 2-a of part W of chapter 58 of the laws of 2015, is
 amended to read as follows:
   11. "Restructuring bonds" means bonds or other  evidences  of  indebt-
 edness  that  are  issued pursuant to an indenture or other agreement of
 the restructuring bond issuer under a restructuring cost financing order
 (a) the proceeds of which are used, directly or indirectly, to  recover,
 finance, or refinance approved restructuring costs, (b) that are direct-
 ly  or  indirectly  secured by, or payable from, restructuring property,
 (c) that have a term no longer than thirty years and  (d)  that  have  a
 final scheduled maturity date no later than the final scheduled maturity
 date  of  the  authority  bonds  OR  THE BONDS OF THE RESTRUCTURING BOND
 ISSUER purchased,  redeemed  or  defeased  with  the  proceeds  of  such
 restructuring  bonds, PROVIDED, HOWEVER THAT BONDS OR OTHER EVIDENCES OF
 INDEBTEDNESS THAT ARE ISSUED TO FINANCE SYSTEM  RESILIENCY  COSTS  OTHER
 THAN THE COSTS OF PURCHASING, REDEEMING OR DEFEASING DEBT OF THE AUTHOR-
 ITY  OR  THE  BONDS OF THE RESTRUCTURING BOND ISSUER INCURRED TO FINANCE
 SYSTEM RESILIENCY COSTS MAY HAVE A TERM OF UP TO THIRTY YEARS.
   § 4. Section 2 of part B of chapter 173 of the laws of  2013  relating
 to  the  issuance  of  securitized  restructuring bonds to refinance the
 outstanding debt of the Long  Island  power  authority,  is  amended  by
 adding a new subdivision 17-a to read as follows:
   17-A.  "SYSTEM RESILIENCY COSTS" MEANS, TO THE EXTENT APPROVED AS SUCH
 UNDER A RESTRUCTURING COST FINANCING ORDER, COSTS OF REBUILDING, IMPROV-
 ING OR CONSTRUCTING  TRANSMISSION  AND  DISTRIBUTION  SYSTEM  ASSETS  TO
 INCREASE RESILIENCY OF SUCH ASSETS, BETTER WITHSTAND CHANGES IN CLIMATE,
 ABSORB  IMPACTS  FROM  OUTAGE-INDUCING  EVENTS, AND RECOVER QUICKLY FROM
 OUTAGES INCLUDING BUT NOT LIMITED TO, IMPROVEMENTS TO AND REPLACEMENT OF

 S. 6455--C                          3
 
 POLES AND WIRES, MOVING POWER LINES  UNDERGROUND,  RAISING  SUBSTATIONS,
 CONSTRUCTING FLOOD BARRIERS, AND SYSTEM AUTOMATION AND COSTS OF PURCHAS-
 ING,  REDEEMING  OR  DEFEASING DEBT OF THE AUTHORITY INCURRED TO FINANCE
 SUCH  COSTS  OR  REIMBURSING  THE AUTHORITY FOR AMOUNTS ALREADY SPENT ON
 SUCH COSTS.
   § 5. Subdivision 1 of section 3 of part B of chapter 173 of  the  laws
 of  2013  relating to the issuance of securitized restructuring bonds to
 refinance the outstanding debt of the Long Island  power  authority,  is
 amended to read as follows:
   1. Standard. The authority may, IN CONSULTATION WITH THE DEPARTMENT OF
 PUBLIC SERVICE, prepare a restructuring cost financing order (A) for the
 purpose  of issuing restructuring bonds to refinance outstanding debt of
 the authority OR THE RESTRUCTURING BOND ISSUER based on a  finding  that
 such  bond  issuance  is  expected  to result in savings to consumers of
 electric transmission and distribution services in the service area on a
 net present value basis; OR (B) FOR THE PURPOSE OF ISSUING RESTRUCTURING
 BONDS TO FINANCE SYSTEM RESILIENCY COSTS BASED ON A FINDING THAT FUNDING
 OF SUCH SYSTEM RESILIENCY COSTS BY THE  ISSUER  WOULD  RESULT  IN  LOWER
 COSTS TO CONSUMERS OF ELECTRIC TRANSMISSION AND DISTRIBUTION SERVICES IN
 THE SERVICE AREA ON A NET PRESENT VALUE BASIS THAN FUNDING OF SUCH COSTS
 BY THE AUTHORITY.
   §  6. Paragraph (a) of subdivision 1 of section 4 of part B of chapter
 173 of the laws of 2013 relating to the issuance of securitized restruc-
 turing bonds to refinance the outstanding debt of the Long Island  power
 authority,  as  amended by section 3 of part W of chapter 58 of the laws
 of 2015, is amended to read as follows:
   (a) For the purpose of effectuating the purposes declared  in  section
 one  of  this  act,  there is hereby created a special purpose corporate
 municipal instrumentality of the state to  be  known  as  "utility  debt
 securitization  authority", which shall be a body corporate and politic,
 a political subdivision of the state, and a public benefit  corporation,
 exercising  essential governmental and public powers for the good of the
 public.  Such restructuring bond issuer shall not be created  or  organ-
 ized,  and  its  operations  shall  not be conducted, for the purpose of
 making a profit. No part of the revenues or assets of such restructuring
 bond issuer shall inure to the benefit of or  be  distributable  to  its
 trustees  or  officers  or  any  other private persons, except as herein
 provided for actual services rendered.  The aggregate  principal  amount
 of  restructuring  bonds  authorized  to be issued by restructuring bond
 issuers created pursuant to this  act  shall  not  exceed  [four]  EIGHT
 billion [five hundred million] dollars.
   §  7.  Subparagraphs (i) and (iv) of paragraph (a) of subdivision 2 of
 section 4 of part B of chapter 173 of the laws of 2013 relating  to  the
 issuance   of   securitized   restructuring   bonds   to   refinance the
 outstanding debt of the Long Island power authority, subparagraph (i) as
 amended and subparagraph (iv) as added by section 4 of part W of chapter
 58 of the laws of 2015,  are  amended to read as follows:
   (i) issue the restructuring bonds contemplated by a restructuring cost
 financing order, and use the proceeds thereof to  purchase  or  acquire,
 and  to  own,  hold  and  use  restructuring  property or to pay or fund
 upfront financing costs [provided, however, that the restructuring  bond
 issuer  shall not issue restructuring bonds for the purpose of refunding
 other restructuring bond];
   (iv) only issue restructuring bonds of which the final scheduled matu-
 rity date of any series of restructuring bonds shall be  no  later  than
 the final scheduled maturity date of the authority bonds OR THE BONDS OF

 S. 6455--C                          4
 
 THE RESTRUCTURING BOND ISSUER to be purchased, redeemed or defeased with
 the  proceeds of such restructuring bonds, PROVIDED, HOWEVER, THAT BONDS
 OR OTHER EVIDENCES OF INDEBTEDNESS THAT ARE  ISSUED  TO  FINANCE  SYSTEM
 RESILIENCY  COSTS  OTHER  THAN  THE  COSTS  OF  PURCHASING, REDEEMING OR
 DEFEASING DEBT OF THE AUTHORITY OR THE BONDS OF THE  RESTRUCTURING  BOND
 ISSUER INCURRED TO FINANCE SYSTEM RESILIENCY COSTS MAY HAVE A TERM OF UP
 TO THIRTY YEARS.
   § 8. This act shall take effect immediately.