S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8894
 
                           I N  A S S E M B L Y
 
                             January 26, 2024
                                ___________
 
 Introduced by M. of A. THIELE, SOLAGES, RAMOS, J. A. GIGLIO -- read once
   and referred to the Committee on Corporations, Authorities and Commis-
   sions
 
 AN  ACT  to  amend  the  public  authorities law, the executive law, the
   public service law and the state finance law, in  relation  to  powers
   and  duties  of  the  department of public service and the Long Island
   power authority

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Short  title. This act shall be known and may be cited as
 the "Long Island power authority public power act".
   § 2. The purpose of this act is to facilitate transition of  the  Long
 Island  power  authority ("LIPA") into a full public power model through
 modifications of its authority to manage, operate  and  control  utility
 operations in its service area as well as to modify its statutory, fidu-
 ciary, financial and related obligations, so that LIPA would fully oper-
 ate  the electric grid in its service area without the added expense and
 lack of accountability that comes from contracting out the operations of
 LIPA's grid to a private, investor-owned utility, and to give  LIPA  the
 flexibility  to  use the PEO model as a secondary alternative to the LLC
 model.
   § 3. Title 2 of article 9 of the public authorities  law  governs  the
 roles  and  responsibilities  of  boards  of public authorities. Through
 adoption of the act and the amendments made by part A of chapter 173  of
 the  laws of 2013, the board's responsibilities were modified from those
 afforded to the boards of other New York state public authorities.  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 service contractors during Super-
 storm Sandy in 2012 and Tropical  Storm  Isaias  in  2020.  In  adopting
 section  83-n  of the legislative law, the legislature determined that a
 better management alternative for LIPA must be implemented. The legisla-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD13880-01-3
 A. 8894                             2
 
 ture proposed implementation of the original vision for LIPA intended by
 chapter 517 of the laws of 1986, as  a  publicly  owned  power  company.
 Thus,  amendment of title 1-A of article 9 of the public authorities law
 is  required to allow LIPA's board to function with full authority under
 title 2 of article 9 of the public authorities law and  as  intended  in
 chapter 517 of the laws of 1986.  LIPA's board must have the legislative
 authority  to effectively oversee LIPA's public power operations. Amend-
 ment of the public authorities law, the public service law and the state
 finance law are necessary to aid in the transition  to  a  fully  public
 power model.
   § 4. Section 1020-a of the public authorities law, as added by chapter
 517 of the laws of 1986, is amended to read as follows:
   §  1020-a.  Declaration  of legislative findings and declarations. The
 legislature hereby finds and declares that:
   [Constantly escalating and excessive costs of electricity in the coun-
 ties of Suffolk and Nassau and that portion  of  the  county  of  Queens
 served  by  the Long Island lighting company (hereinafter referred to as
 the "service area") pose a serious threat to  the  economic  well-being,
 health  and  safety of the residents of and the commerce and industry in
 the service area.
   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 reliable, efficient and economic manner by the Long Island
 lighting company (hereinafter referred to as "LILCO").
   Such excessive costs and lack of confidence have deterred commerce and
 industry from locating in the service  area  and  have  caused  existing
 commerce  and  industry  to consider seriously moving out of the service
 area.
   The decisions by LILCO to commence construction of the Shoreham nucle-
 ar power plant and thereafter to continue such construction were  impru-
 dent.
   The  investment  of  LILCO  in  the  Shoreham  nuclear power plant has
 created significant rate increases, straining the economic  capabilities
 of  ratepayers  in  the  service  area,  and likely will require further
 substantial rate increases if such plant is placed in service.
   It is uncertain whether the Shoreham nuclear plant ever will  go  into
 commercial  service,  or  if  it  does  whether its reliability, cost of
 construction, operation and maintenance  will  be  such  as  to  provide
 sufficient,  reliable and economic electric service to ratepayers in the
 service area. The very substantial financial strain of the investment in
 the Shoreham nuclear plant has required LILCO to  suspend  dividends  on
 its  common  and  preferred  stock,  severely  threatening the continued
 economic viability of LILCO.
   For all the above reasons, a situation threatening the economy, health
 and safety exists in the service area.
   Dealing with such a situation in an  effective  manner,  assuring  the
 provision  of an adequate supply of electricity in a reliable, efficient
 and economic manner, and retaining existing commerce and industry in and
 attracting new commerce and industry to the service  area,  in  which  a
 substantial  portion  of the state's population resides and which encom-
 passes a substantial portion of the state's commerce and  industry,  are
 hereby  expressly  determined  to be matters of state concern within the
 meaning of paragraph three of subdivision (a) of section three of  arti-
 cle nine of the state constitution.
   Such matters of state concern best can be dealt with by replacing such
 investor owned utility with a publicly owned power authority. Such an]
 A. 8894                             3
 
   LIPA  WAS  CREATED  BY THE LONG ISLAND POWER AUTHORITY ACT IN NINETEEN
 HUNDRED EIGHTY-SIX ("LIPA ACT") IN RESPONSE TO  GROWING  DISSATISFACTION
 WITH  THE  LONG ISLAND LIGHTING COMPANY ("LILCO"), AN INVESTOR-OWNED GAS
 AND ELECTRIC UTILITY THAT PROVIDED SERVICE TO LONG ISLAND AND THE ROCKA-
 WAYS.  DETERIORATING CONFIDENCE IN LILCO'S ABILITY TO PROVIDE AFFORDABLE
 AND  RELIABLE RATES AND THE CONTROVERSIAL DECISION TO BUILD THE SHOREHAM
 NUCLEAR POWER PLANT CREATED A SITUATION  THAT  THREATENED  THE  ECONOMY,
 HEALTH, AND SAFETY IN LILCO'S SERVICE AREA. AS A RESULT, LIPA WAS GRANT-
 ED  BROAD  POWERS  TO  OPERATE  AS  A  PUBLICLY OWNED POWER AUTHORITY TO
 PROVIDE SAFE AND ADEQUATE ELECTRICAL SERVICE AT RATES THAT WOULD BENEFIT
 RATEPAYERS IN THE SERVICE AREA.
   HOWEVER, LIPA NEVER ESTABLISHED ITSELF AS A TRUE "PUBLICLY OWNED POWER
 AUTHORITY" AS ORIGINALLY ENVISIONED BY THE  LEGISLATURE.  RATHER,  SINCE
 NINETEEN  HUNDRED NINETY-EIGHT, LIPA HAS OPTED FOR A THIRD-PARTY MANAGE-
 MENT MODEL WHEREBY LIPA CONTRACTS ITS RESPONSIBILITY TO MANAGE THE UTIL-
 ITY TO A PRIVATE, INVESTOR-OWNED UTILITY COMPANY.
   LIPA IS THE ONLY UTILITY IN THE NATION THAT IS OPERATED UNDER  SUCH  A
 THIRD-PARTY  MANAGEMENT MODEL. THE MODEL'S FAILURES IN EFFICIENCY, RELI-
 ABILITY, TRANSPARENCY, OVERSIGHT,  AND  ACCOUNTABILITY  HAVE  BEEN  WELL
 DOCUMENTED  OVER  THE  YEARS.  IN ADOPTING SECTION EIGHTY-THREE-N OF THE
 LEGISLATIVE LAW, ESTABLISHING THE COMMISSION ON THE FUTURE OF  LIPA  AND
 CHARGING IT WITH THE RESPONSIBILITY TO PRESENT THE LEGISLATURE WITH "THE
 SPECIFIC  ACTIONS,  LEGISLATION,  AND  TIMELINE NECESSARY TO RESTRUCTURE
 LIPA INTO A TRUE PUBLICLY OWNED POWER AUTHORITY," THE LEGISLATURE DETER-
 MINED THAT A BETTER MANAGEMENT ALTERNATIVE FOR LIPA MUST BE IMPLEMENTED.
   THE LEGISLATURE FINDS THAT A PUBLIC POWER authority  can  best  accom-
 plish  the purposes and objectives of this title by [implementing, if it
 then appears appropriate, the results of negotiations between the  state
 and  LILCO.  In  such  circumstances,  such  an  authority will provide]
 PROVIDING safe and adequate service at rates which will  be  lower  than
 the  rates which would otherwise result and will facilitate the shifting
 of investment into more beneficial energy demand/energy  supply  manage-
 ment alternatives, realizing savings for the ratepayers and taxpayers in
 the  service  area and otherwise restoring the confidence and protecting
 the interests of ratepayers and the economy in the service  area.  More-
 over,  [in  such  circumstances  the  replacement of such investor owned
 utilities by such an authority will result in] A PUBLIC POWER  AUTHORITY
 WILL  RESULT  IN  an improved system and reduction of future costs and a
 safer, more efficient, reliable and economical supply of electric  ener-
 gy.  The  legislature further finds that such an authority shall utilize
 to the fullest extent practicable, all economical means of conservation,
 and technologies that rely on renewable energy  resources,  cogeneration
 and  improvements  in energy efficiency which will benefit the interests
 of the ratepayers of the service area.
   § 5. Section 1020-b of the public authorities law, as added by chapter
 517 of the laws of 1986, subdivision 11 as amended by chapter 381 of the
 laws of 1987, subdivision 12-a as added by chapter 506 of  the  laws  of
 1995,  and  subdivisions  23  and  24 as added by section 3 of part A of
 chapter 173 of the laws of 2013, is amended to read as follows:
   § 1020-b. Definitions. As used or referred to in this title, unless  a
 different meaning clearly appears from the context:
   1. "Acquire" means, with respect to any right, title or interest in or
 to  any  property,  the  act  of  taking by the exercise of the power of
 eminent domain, or acquisition by purchase or otherwise.
   2. "Act" means the Long Island power authority act, being title  one-A
 of  article five of the public authorities law, as added by [this title]
 A. 8894                             4
 
 CHAPTER FIVE HUNDRED SEVENTEEN OF THE LAWS OF NINETEEN  HUNDRED  EIGHTY-
 SIX, AND AS SUBSEQUENTLY AMENDED.
   3.  "Authority"  means  the  Long  Island  power  authority created by
 section one thousand twenty-c of this title.
   4. "Board" means the board of trustees of the authority.
   5. "Bonds" or "notes" mean  the  bonds,  notes  or  other  obligations
 issued by the authority pursuant to this title.
   6. "COMMUNITY STAKEHOLDER BOARD" MEANS A COMMITTEE DESIGNED TO SUPPLE-
 MENT  THE  EXPERTISE  AND  EXPERIENCE  OF  THE  BOARD TO PROMOTE CITIZEN
 INVOLVEMENT AND ENSURE BALANCED REPRESENTATION FROM ITS SERVICE AREA.
   7. "Fair market value" means the value of property, real, personal  or
 mixed, which would be obtained in an arm's length transaction between an
 informed  and  willing buyer under no compulsion to buy, and an informed
 and willing seller under no compulsion to sell.
   [7.] 8. "Federal government" means the United States  of  America  and
 any  agency  or  instrumentality,  corporate or otherwise, of the United
 States of America.
   [8.] 9. "Final determination" or "finally determined" means a judicial
 decision (i) by the highest court of competent jurisdiction, or (ii)  by
 a  court  of  competent jurisdiction from which no appeal has been taken
 and the time within which to appeal has expired.
   [9.] 10. "Governing body" means, with respect to any municipality, the
 body having charge of the fiscal affairs of such municipality.
   [10.] 11. "LILCO" means the Long Island lighting company, its  subsid-
 iaries and their successors and assigns, other than the authority.
   [11.] 12. "Municipality" means any city, town, village, county, munic-
 ipal  corporation,  district  corporation,  district  or other political
 subdivision of the state.
   [12. "OCLD" means the original cost of assets, less depreciation.
   12-a.] 13. "Project" means an action undertaken by the authority that:
   (i) Causes the authority to issue bonds, notes or  other  obligations,
 or shares in any subsidiary corporation, or
   (ii)  Significantly  modifies  the use of an asset valued at more than
 one million dollars owned by the authority or involves the  sale,  lease
 or other disposition of such an asset, or
   (iii)  Commits  the  authority to a contract or agreement with a total
 consideration of greater than one million dollars and does  not  involve
 the day to day operations of the authority.
   [13.]  14.  "Prudent utility practices" at a particular time means any
 of the practices, methods, and acts, which, in the exercise  of  reason-
 able  judgment  in  light of the facts (including but not limited to the
 practices, methods and acts engaged in  or  approved  by  a  significant
 portion  of  the gas or the electrical utility industry, as the case may
 be, prior thereto) known at the time the decision was made,  would  have
 been  expected to accomplish the desired result at the lowest reasonable
 cost consistent with reliability, safety and expedition. Prudent utility
 practice is not intended to be limited to the optimum  practice,  method
 or  act,  to the exclusion of all others, but rather to be a spectrum of
 possible practices, methods or acts. In evaluating  whether  any  matter
 conforms  to  prudent  utility  practice,  the  parties  shall take into
 account the fact that the authority is a corporate municipality  of  the
 state with the statutory duties and responsibilities thereof.
   [14.]  15.  "Real  property"  means  lands, structures, franchises and
 interests in land, including lands under water and riparian rights,  and
 any  and  all other things and rights usually included within such term,
 and includes also any and all interests in such property less than  full
 A. 8894                             5
 
 title,  such as easements, rights of way, uses, leases, licenses and all
 other incorporeal hereditaments and every  estate,  interest  or  right,
 legal  or  equitable, including terms for years and liens thereon by way
 of  judgments,  mortgages  or otherwise, and also all claims for damages
 for such real estate.
   [15. "RCNLD" means the reproduction cost of new assets, less  depreci-
 ation.]
   16.  "Security"  means  any note, stock (whether common or preferred),
 bond, debenture, evidence of indebtedness, transferable  share,  voting-
 trust  certificate  or,  in general, any interest or instrument commonly
 known as a "security", or any certificate of interest  or  participation
 in,  temporary  or  interim  certificate for, receipt for, or warrant or
 right to subscribe to or purchase any of the foregoing.
   17. "Service area" means the counties of Suffolk and Nassau  and  that
 portion  of  the  county of Queens [constituting LILCO's franchise area]
 KNOWN AS THE ROCKAWAYS SERVED BY THE AUTHORITY as of the effective  date
 of this title.
   18. "SERVCO" MEANS THE LONG ISLAND ELECTRIC UTILITY SERVCO LLC AND ITS
 SUCCESSORS AND ASSIGNS.
   19.  "Shoreham  plant"  means the nuclear powered facility designed to
 generate electric power owned by LILCO  and  located  in  Shoreham,  New
 York.
   [19.] 20. "State" means the state of New York.
   [20.]  21.  "State agency" means any board, authority, agency, depart-
 ment, commission, public corporation, body politic or instrumentality of
 the state.
   [21.] 22. "Trustees" means the trustees of the authority appointed  or
 elected,  as  the case may be, pursuant to section one thousand twenty-d
 of this title.
   [22. "Valuation date" means (i) the effective date of this title, (ii)
 the date of the taking of the stock or assets pursuant to this title  or
 (iii) such earlier or later date or, in the case of equity or debt secu-
 rities, such period of trading days in the primary established market in
 which  such  securities are traded, as may be determined to be necessary
 to exclude from the  determination  of  the  market  value  thereof  any
 enhancement  or  depreciation  in  value  arising from the announcement,
 expectation or accomplishment of the taking by the exercise of the power
 of eminent domain or otherwise, or speculative market activity  intended
 to cause or having the effect of causing an increase or decrease in such
 market value.]
   23.  "Service provider" means [the] ANY entity under contract with the
 authority to provide management and operation services  associated  with
 the  authority's  electric  transmission and distribution system and any
 subsidiary of such entity that provides  such  services  under  contract
 PRIOR TO AN ACQUISITION OF SERVCO BY THE AUTHORITY.
   24.  "Operations services agreement" means an agreement and any amend-
 ments thereto between [the Long Island lighting company dba LIPA or] the
 authority OR A SUBSIDIARY OF THE AUTHORITY PURSUANT TO  SUBDIVISION  ONE
 OF  SECTION  ONE  THOUSAND  TWENTY-I  OF  THIS TITLE and [the] A service
 provider to provide management and operation  services  associated  with
 the authority's electric transmission and distribution system.
   25.  "CONTRACTS  FOR EMERGENCY GOODS OR SERVICES" SHALL MEAN CONTRACTS
 ENTERED   INTO FOR PROCUREMENT OF GOODS,  SERVICES  OR  BOTH  GOODS  AND
 SERVICES  MADE  TO MEET EMERGENCIES ARISING FROM UNFORESEEN CAUSES OR TO
 EFFECT REPAIRS TO CRITICAL INFRASTRUCTURE THAT ARE  NECESSARY  TO  AVOID
 A. 8894                             6
 
 DELAY  IN  THE  DELIVERY  OF CRITICAL SERVICES THAT COULD COMPROMISE THE
 PUBLIC WELFARE.
   26.  "SHORT-TERM PUBLIC POWER PURCHASE AGREEMENT" SHALL MEAN CONTRACTS
 FOR THE PURCHASE, SALE, OR DELIVERY OF POWER OR ENERGY, FUEL, COSTS  AND
 SERVICES  ANCILLARY THERETO, OR FINANCIAL PRODUCTS RELATED THERETO, WITH
 A TERM OF LESS THAN FIVE YEARS.
   § 5-a. Section 1020-d of the public authorities  law,  as  amended  by
 section 4 of part A of chapter 173 of the laws of 2013, is amended and a
 new section 1020-d-1 is added to read as follows:
   §  1020-d.  Board of trustees. 1. Starting on January first, two thou-
 sand [fourteen] TWENTY-SIX, the board of the authority shall be  consti-
 tuted and consist of [nine] THIRTEEN trustees all of whom shall be resi-
 dents  of the service area, [five] TWO of whom shall be appointed by the
 governor (TRUSTEES ONE AND TWO), one of whom the governor  shall  desig-
 nate  as  chair,  and serve at his or her pleasure, two of whom shall be
 appointed by the temporary president of the  senate  AFTER  CONSULTATION
 WITH  THE  STATE  SENATOR OR SENATORS REPRESENTING THE LIPA SERVICE AREA
 (TRUSTEES THREE AND FOUR), [and] two of whom shall be appointed  by  the
 speaker  of  the  assembly  AFTER  CONSULTATION  WITH THE STATE ASSEMBLY
 MEMBER OR MEMBERS REPRESENTING THE LIPA SERVICE AREA (TRUSTEES FIVE  AND
 SIX), TWO OF WHOM SHALL BE APPOINTED BY THE NASSAU COUNTY EXECUTIVE WITH
 THE CONSENT OF THE NASSAU COUNTY LEGISLATURE (TRUSTEES SEVEN AND EIGHT),
 TWO  OF WHOM SHALL BE APPOINTED BY THE SUFFOLK COUNTY EXECUTIVE WITH THE
 CONSENT OF THE SUFFOLK COUNTY LEGISLATURE (TRUSTEES NINE AND  TEN),  ONE
 OF WHOM SHALL BE APPOINTED BY THE MAYOR OF THE CITY OF NEW YORK UPON THE
 RECOMMENDATION  OF THE QUEENS BOROUGH PRESIDENT (TRUSTEE ELEVEN), ONE OF
 WHOM SHALL BE THE LIPA  COMMUNITY  STAKEHOLDER  BOARD    CHAIR  (TRUSTEE
 TWELVE),  AND  ONE OF WHOM SHALL BE THE BUSINESS MANAGER OF THE INTERNA-
 TIONAL BROTHERHOOD OF ELECTRICAL WORKERS  1049  REPRESENTING  THE  UNION
 EMPLOYEES  OF LIPA (TRUSTEE THIRTEEN). TRUSTEES ONE THROUGH ELEVEN SHALL
 SERVE STAGGERED  FIVE-YEAR  TERMS,  EXCEPT  DURING  THE  FIRST  TERM  OF
 APPOINTMENTS  UPON  THE EFFECTIVE DATE OF THE CHAPTER OF THE LAWS OF TWO
 THOUSAND TWENTY-FOUR WHICH AMENDED THIS SECTION. TRUSTEES THREE AND FIVE
 SHALL BE APPOINTED FOR  ONE  YEAR,  TRUSTEES  SEVEN  AND  TEN  SHALL  BE
 APPOINTED  FOR  TWO  YEARS, TRUSTEES ONE AND NINE SHALL BE APPOINTED FOR
 THREE YEARS, TRUSTEES SIX AND EIGHT SHALL BE APPOINTED FOR  FOUR  YEARS,
 AND  TRUSTEES  TWO,  FOUR, AND ELEVEN SHALL BE APPOINTED FOR FIVE YEARS.
 THIS WILL ALLOW FOR STAGGERED APPOINTMENTS OF AT LEAST TWO MEMBERS  EACH
 YEAR  AFTER  THE  FIRST  YEAR,  THUS  ENSURING A DEGREE OF CONTINUITY OF
 COMMITTEE MEMBERSHIP.  [One of the governor's appointees shall serve  an
 initial  term of two years; one of the governor's appointees shall serve
 an initial term of three years; and three of the  governor's  appointees
 shall  serve an initial term of four years. One of the appointees of the
 temporary president of the senate and  one  of  the  appointees  of  the
 speaker  of the assembly shall serve initial terms of two years; and one
 appointee of the temporary president of the senate and one appointee  of
 the  speaker  of  the assembly shall serve initial terms of three years.
 Thereafter, all terms shall be for a period of four years. In the  event
 of a vacancy occurring in the office of trustee by death, resignation or
 otherwise,  the  respective appointing officer shall appoint a successor
 who shall hold office for the unexpired portion of the term.] AN  OFFICE
 SHALL BE DEEMED VACANT UPON THE EXPIRATION OF THE TERM.
   2.  [No  trustee shall receive a salary, but each shall be entitled to
 reimbursement for reasonable  expenses  in  the  performance  of  duties
 assigned  hereunder.]  EACH MEMBER SHALL BE ENTITLED TO RECEIVE A SALARY
 A. 8894                             7
 
 OF TWENTY-FIVE THOUSAND DOLLARS  PER  YEAR  PLUS  THE  REIMBURSEMENT  OF
 REASONABLE EXPENSES.
   3.  Notwithstanding the provisions of any other law, no trustee, offi-
 cer or employee of the state, any state agency or municipality appointed
 a trustee shall be deemed to have forfeited or shall forfeit his or  her
 office or employment by reason of his or her acceptance of a trusteeship
 on  the  authority,  his or her service thereon or his or her employment
 therewith.
   4. All trustees appointed under this section shall have relevant util-
 ity, ENGINEERING, ENERGY,  INFORMATION  TECHNOLOGY,  CONSTRUCTION,  LAW,
 HUMAN  RESOURCES,  PROCUREMENT,  CUSTOMER SERVICE, MANAGEMENT, corporate
 board or financial experience.
   § 1020-D-1. COMMUNITY STAKEHOLDER BOARD. 1. STARTING ON JANUARY FIRST,
 TWO THOUSAND TWENTY-SIX, THERE SHALL BE ESTABLISHED A  COMMUNITY  STAKE-
 HOLDER BOARD ("CSB").
   2. THE CSB SHALL BE COMPOSED OF TWENTY-SIX MEMBERS, FIVE OF WHOM SHALL
 RESIDE  IN NASSAU COUNTY AND BE APPOINTED BY THE SPEAKER OF THE ASSEMBLY
 IN CONSULTATION WITH THE NASSAU COUNTY DELEGATION, FIVE  OF  WHOM  SHALL
 RESIDE IN SUFFOLK COUNTY AND BE APPOINTED BY THE SPEAKER OF THE ASSEMBLY
 IN  CONSULTATION WITH THE SUFFOLK COUNTY DELEGATION, THREE OF WHOM SHALL
 RESIDE IN THE ROCKAWAYS AND BE APPOINTED BY THE SPEAKER OF THE  ASSEMBLY
 IN  CONSULTATION  WITH THE NEW YORK STATE LEGISLATIVE DELEGATION REPRES-
 ENTING THE ROCKAWAYS, FIVE OF WHOM SHALL RESIDE IN NASSAU COUNTY AND  BE
 APPOINTED  BY THE TEMPORARY PRESIDENT OF THE SENATE IN CONSULTATION WITH
 THE NASSAU COUNTY DELEGATION, FIVE OF WHOM SHALL RESIDE IN SUFFOLK COUN-
 TY AND BE APPOINTED BY THE TEMPORARY PRESIDENT OF THE SENATE IN  CONSUL-
 TATION  WITH  THE  SUFFOLK  COUNTY  DELEGATION,  AND THREE OF WHOM SHALL
 RESIDE IN THE ROCKAWAYS AND BE APPOINTED BY THE TEMPORARY  PRESIDENT  OF
 THE  SENATE  IN  CONSULTATION WITH THE NEW YORK STATE LEGISLATIVE DELEG-
 ATION REPRESENTING THE ROCKAWAYS. THE CSB SHALL BE COMPOSED OF  RATEPAY-
 ERS  AND  MADE  UP  OF MEMBERS FROM DIVERSE SECTORS AND BACKGROUNDS WITH
 PROPER GEOGRAPHIC DIVERSITY  AND  STAKEHOLDER  REPRESENTATION  INCLUDING
 SOCIAL  JUSTICE,  ENVIRONMENTAL,  INDIGENOUS  NATIONS,  BUSINESS, FAITH-
 BASED, LABOR, LOCAL GOVERNMENT, ECONOMIC DEVELOPMENT,  ENERGY,  LOW  AND
 FIXED  INCOME, MEMBERS OF DISADVANTAGED COMMUNITIES, CONSUMER, CIVIC AND
 SCHOOL DISTRICTS.
   3. A. THE TERM OF APPOINTMENT OF THE MEMBERS  OF  THE  CSB  SHALL,  IN
 GENERAL, BE TWO YEARS. MEMBERS OF THE CSB MAY BE APPOINTED FOR MORE THAN
 ONE TERM.
   B.  CSB  MEMBER  TERMS  SHALL  END ON DECEMBER THIRTY-FIRST, TWO YEARS
 AFTER THE COMMENCEMENT OF THE TERM AND EACH  POSITION  SHALL  BE  VACANT
 UPON EXPIRATION.
   C.  UPON  THREE  CONSECUTIVE UNEXCUSED ABSENCES, A CSB MEMBER SHALL BE
 DISMISSED AND HIS OR HER SEAT SHALL BE CONSIDERED VACANT BY OPERATION OF
 LAW.
   D. CSB MEMBERS SHALL BE PAID TWO HUNDRED FIFTY DOLLARS  PER  DIEM  FOR
 MEETINGS  AND  SHALL BE REIMBURSED FOR REASONABLE EXPENSES FOR ATTENDING
 MEETINGS.
   4. THE COMMUNITY STAKEHOLDER BOARD SHALL:
   A. REVIEW AND ASSESS THE AUTHORITY'S AND  BOARD  OF  TRUSTEES'  OPERA-
 TIONAL PLANS AND PROVIDE AN OPINION ON THE MERITS OF THE PLAN AND FUTURE
 REVISIONS  TO  IT  TO THE AUTHORITY. THE CSB ANTICIPATES THAT THE OPERA-
 TIONAL PLANS WILL AT A MINIMUM CONSIDER LONG TERM STRATEGIES TO REHABIL-
 ITATE AND MAINTAIN THE AUTHORITY'S INFRASTRUCTURE,  PROVIDE  FOR  LABOR-
 FORCE CONTINUITY, MAINTAIN A PORTFOLIO OF ADEQUATE RESOURCES TO MEET THE
 NEEDS  OF ITS CUSTOMERS, AND ENSURE CONTINUED REGULATORY COMPLIANCE. THE
 A. 8894                             8
 
 CSB WILL ADVISE THE AUTHORITY AND BOARD OF  TRUSTEES  TO  INCLUDE  OTHER
 ISSUES THAT SHOULD BE PART OF THE AUTHORITY'S PLANNING FRAMEWORK;
   B. CONSULT DPS-LI TO SET APPROPRIATE METRICS FOR MONITORING LIPA;
   C.  ASSIST  THE AUTHORITY AND BOARD OF TRUSTEES IN ENGAGING RATEPAYERS
 IN DISCUSSIONS OF THE MERITS AND IMPLICATIONS OF THE OPERATION PLANS AND
 REVISIONS THERETO;
   D. PROVIDE AN ASSESSMENT TO THE AUTHORITY AND BOARD OF TRUSTEES OF THE
 ADEQUACY OF FINANCIAL POLICIES TO PROTECT THE FINANCIAL INTEGRITY OF THE
 UTILITY AND THE SUFFICIENCY OF THE POLICIES TO SUPPORT IMPLEMENTATION OF
 THE ADOPTED STRATEGIC PLAN;
   E. REVIEW CHANGES TO THE AUTHORITY'S RATES NOT ALREADY  AUTHORIZED  BY
 THIS CHAPTER AND PROVIDE AN OPINION TO THE AUTHORITY ON THE ADEQUACY AND
 PRUDENCE  OF  SUCH RATE CHANGES IN LIGHT OF ADOPTED PLANNING ASSUMPTIONS
 AND FINANCIAL POLICIES;
   F. AFTER THE ADOPTION OF EACH  UPDATE  TO  THE  STRATEGIC  PLAN,  WORK
 CLOSELY  WITH AUTHORITY STAFF DESIGNATED BY THE AUTHORITY TO PROPOSE, IN
 WRITING, A BIENNIAL WORK PROGRAM TO THE AUTHORITY, WHICH  MAY  FOCUS  ON
 ISSUES  INCLUDING,  BUT  NOT  LIMITED TO, FINANCIAL POLICIES, COST ALLO-
 CATION, RATE DESIGN, OPERATIONAL EFFICIENCY,  ISSUES  REQUESTED  BY  THE
 AUTHORITY,  AND  ISSUES  THE CSB BELIEVES THE AUTHORITY SHOULD CONSIDER;
 AND
   G. PROVIDE THE AUTHORITY AND  BOARD  OF  TRUSTEES  WITH  ANALYSES  AND
 RECOMMENDATIONS ON SIGNIFICANT ELEMENTS OF THE OPERATIONAL PLANS INCLUD-
 ING,  BUT  NOT  LIMITED  TO,  FINANCIAL  POLICIES, COST ALLOCATION, RATE
 DESIGN, OPERATIONAL EFFICIENCY, AND TO SUBMIT ITS RECOMMENDATIONS TO THE
 AUTHORITY OR, IF A COLLECTIVE RECOMMENDATION CANNOT BE REACHED, A RECOM-
 MENDATION INDICATING THE MAJORITY AND MINORITY POSITIONS AND THE RATION-
 ALES FOR THOSE POSITIONS.
   5. A. THE CSB SHALL ESTABLISH ITS OWN BY-LAWS AND RULES  FOR  ELECTION
 OF CHAIRS AND OFFICERS, QUORUM, MEETING FREQUENCY, SUB-COMMITTEES, ETC.,
 EXCEPT  THAT  THE CSB SHALL MEET AT LEAST FOUR TIMES IN ANY TWELVE-MONTH
 PERIOD. MEETINGS SHALL BE SUBJECT TO THE OPEN MEETINGS LAW.
   B. THE MINUTES OF CSB MEETINGS AND PROCEEDINGS AND  CSB  FINDINGS  AND
 RECOMMENDATIONS SHALL BE MADE PUBLIC, SUBJECT TO THE FREEDOM OF INFORMA-
 TION LAW.
   C.  THERE  SHALL  BE  TWO  DEDICATED LIPA STAFF MEMBERS HIRED WITH THE
 CONSENT OF THE CSB TO PROVIDE THE CSB WITH ADMINISTRATIVE, RESEARCH, AND
 OTHER SUPPORT NECESSARY FOR THE CSB TO FULFILL ITS RESPONSIBILITIES.
   D. LIPA SHALL PROVIDE THE CSB WITH INFORMATION AND DATA  AS  REQUESTED
 WITHIN A REASONABLE AMOUNT OF TIME.
   § 6. Section 1020-e of the public authorities law, as added by chapter
 517 of the laws of 1986, is amended to read as follows:
   §  1020-e. Officers and employees; expenses. The board, or the [chair-
 man] CHAIRPERSON pursuant to authority duly delegated  to  him  OR  HER,
 from  time  to time shall hire, without regard to any personnel or civil
 service law, rule or regulation of the state  [and  in  accordance  with
 guidelines  adopted  by  the authority], such employees and consultants,
 including without limitation those in the areas of engineering,  market-
 ing,  finance,  appraisal,  accounting  [and], law, CONSTRUCTION, TRANS-
 MISSION AND DISTRIBUTION,  ENERGY  MANAGEMENT,  INFORMATION  TECHNOLOGY,
 CYBER  SECURITY,  POWER  SUPPLY, HUMAN RESOURCES, PROCUREMENT, TREASURY,
 ENERGY EFFICIENCY, CUSTOMER SERVICE AND ANY OTHER AREA OF UTILITY  OPER-
 ATIONS,  as  it  may require for the performance of its duties and shall
 prescribe the duties and compensation  of  each  officer  and  employee,
 provided,  however, that [if] any such employees [are] hired, LEASED, OR
 OTHERWISE RETAINED BY THE AUTHORITY OR ANY  OF  ITS  SUBSIDIARIES  as  a
 A. 8894                             9
 
 consequence  of  an  acquisition  of  all the [stock or assets of LILCO]
 MEMBERSHIP INTERESTS IN, OR ASSETS OF, SERVCO, OR ANY AUTHORITY  SUBSID-
 IARY  [they] shall be hired subject TO, and be entitled to, all applica-
 ble  provisions  of  (i)  any  existing contract or contracts with labor
 unions REPRESENTING SERVCO EMPLOYEES, and  (ii)  all  existing  pension,
 RETIREMENT,  or  other  [retirement  plans]  BENEFITS PROVIDED TO SERVCO
 EMPLOYEES UNDER ANY EXISTING COLLECTIVE BARGAINING  AGREEMENT.    SERVCO
 EMPLOYEES SHALL NOT BE PUBLIC EMPLOYEES OR ELIGIBLE TO BECOME MEMBERS OF
 THE  NEW  YORK  STATE  AND LOCAL EMPLOYEES' RETIREMENT SYSTEM. [Notwith-
 standing the provisions of any general, special or local law, the  board
 may determine that, if any pension or retirement plan becomes inapplica-
 ble  or  is terminated, all or such class or classes of employees of the
 authority as the board may determine may elect to become members of  the
 New York state employees' retirement system on the basis of compensation
 payable to them by the authority.]
   §  7.  Subdivisions  (c),  (h), (o), (s), (u), (bb), (cc), (dd), (ee),
 (ff), (gg), (hh) and (ii) of section 1020-f of  the  public  authorities
 law,  subdivisions  (c)  and (bb) as amended and subdivisions (u), (cc),
 (dd), (ee), (ff), (gg) and (hh) as added by section 7 of part A of chap-
 ter 173 of the laws of 2013, subdivisions (h), (o) and (s) as  added  by
 chapter  517  of  the  laws of 1986, paragraph 2-a of subdivision (u) as
 added by chapter 471 of the laws of 2014,  paragraph  5  of  subdivision
 (bb)  as added by chapter 358 of the laws of 2020, paragraph 1 of subdi-
 vision (cc) as separately amended by chapter 395 of the laws of 2022 and
 chapter 38 of the laws of 2023, and subdivision (ii) as amended by chap-
 ter 121 of the laws of 2022, are amended to read as follows:
   (c) To appoint officers, agents and employees[,] OF THE  AUTHORITY  OR
 ANY  SUBSIDIARY  without  regard  to any personnel or civil service law,
 rule or regulation of the state, INCLUDING BUT NOT LIMITED  TO  THE  NEW
 YORK  STATE PUBLIC EMPLOYEES FAIR EMPLOYMENT ACT, and in accordance with
 guidelines adopted by the authority, prescribe their duties  and  quali-
 fications  and  fix  and  pay their compensation[. By January first, two
 thousand fourteen, the  authority,  through  its  governance  committee,
 shall amend such guidelines to require that staffing at the authority is
 kept  at  levels  only necessary to ensure that the authority is able to
 meet obligations with respect to its bonds and notes and all  applicable
 statutes  and  contracts,  and  oversee  the  activities  of the service
 provider];
   (h) To make and execute agreements, contracts  and  other  instruments
 necessary  or  convenient in the exercise of the powers and functions of
 the authority under this title, including  contracts  with  any  person,
 firm, corporation, municipality, state agency or other entity in accord-
 ance  with  the  provisions  of section one hundred three of the general
 municipal law, and all state agencies and all municipalities are  hereby
 authorized to enter into and do all things necessary to perform any such
 agreement,  contract or other instrument with the authority, EXCEPT THAT
 (I) THE AUTHORITY'S CONTRACTS, OTHER THAN AS SPECIFIED IN PARAGRAPH (II)
 OF THIS SUBDIVISION, SHALL ONLY BE SUBJECT TO BIDDING  REQUIREMENTS  AND
 PRE-AUDIT  REQUIREMENTS  WHENEVER SUCH CONTRACT EXCEEDS AN AMOUNT ESTAB-
 LISHED BY THE COMPTROLLER IN CONSULTATION WITH THE AUTHORITY,  AND  (II)
 THE AUTHORITY'S CONTRACTS ENTERED INTO FOR CATEGORIES DESCRIBED IN PARA-
 GRAPHS  (C)  THROUGH  (E)  OF  SUBDIVISION THREE OF SECTION TWENTY-EIGHT
 HUNDRED SEVENTY NINE-A OF THIS CHAPTER, SHALL  NOT  BE  SUBJECT  TO  THE
 BIDDING REQUIREMENTS OR PRE-AUDIT REQUIREMENTS OF THE COMPTROLLER PURSU-
 ANT TO SECTION ONE THOUSAND TWENTY-MM OF THIS TITLE, BUT MUST BE ENTERED
 INTO  PURSUANT  TO  GUIDELINES  AND  THRESHOLDS ESTABLISHED BY THE COMP-
 A. 8894                            10
 
 TROLLER IN CONSULTATION WITH THE AUTHORITY.  ANY SUCH CONTRACTS MUST  BE
 FILED WITH THE COMPTROLLER WITHIN SIXTY DAYS AFTER THEIR EXECUTION;
   (o)  To  create  or  acquire  one or more wholly owned subsidiaries OR
 MEMBERSHIP INTERESTS IN SUBSIDIARIES  in  accordance  with  section  one
 thousand  twenty-i  of  this  title  to carry out all or any part of the
 purposes of this title;
   (s) To enter into [management] agreements for the operation of all  or
 any of the property or facilities owned by the authority;
   (u)  Rate  plans.  Subject  to subdivision six of section one thousand
 twenty-k of this title to fix rates and charges for  the  furnishing  or
 rendition  of  gas  or  electric  power or of any related service at the
 lowest level consistent with sound fiscal and operating practices of the
 authority and which provide for safe and adequate service. In implement-
 ing this power:
   1. [The authority and the service provider shall, on or before  Febru-
 ary  first, two thousand fifteen, submit for review to the department of
 public service a three-year rate proposal for rates and charges to  take
 effect on or after January first, two thousand sixteen.
   2.]  (I)  The  authority [and the service provider] shall [thereafter]
 submit for review to the department of public service any rate  proposal
 that  would  increase the rates and charges and thus increase the aggre-
 gate revenues of the authority by more than two and one-half percent  to
 be  measured  on  an annual basis; provided, however, that the authority
 may place such rates and  charges  into  effect  on  an  interim  basis,
 subject  to prospective rate adjustment; provided, further, that a final
 rate plan issued by the authority that would not so increase such  rates
 and charges shall not be subject to the requirements of paragraph [four]
 THREE of this subdivision and shall be considered final for the purposes
 of  review  under  article  seventy-eight  of the civil practice law and
 rules.  The authority [and/or the service provider] may otherwise submit
 for review to such department any  rate  proposal  irrespective  of  its
 effect on revenues.
   [2-a.]  (II) The authority [and the service provider] shall not submit
 any rate proposal that shall assess any fee, penalty or other charge  of
 any  kind for the voluntary termination of electric service to any resi-
 dential customer for the purpose of  utilizing  alternative  sources  of
 electric generation in excess of that charged to customers who terminate
 their electric service for any other reason.
   [3.]  2.  The  authority  shall  not  fix  any final rates and charges
 proposed that would not be subject to review by the department of public
 service pursuant to [paragraphs] PARAGRAPH one [and two] of this  subdi-
 vision  until  after  holding  public  hearings  thereon upon reasonable
 public notice, with at least one such hearing to be  held  each  in  the
 county of Suffolk [and], the county of Nassau, AND THE COUNTY OF QUEENS.
   [4.]  3. Any recommendations associated with a rate proposal submitted
 pursuant to [paragraphs] PARAGRAPH one [and  two]  of  this  subdivision
 shall  be  provided  by the department of public service to the board of
 the authority immediately upon their  finalization  by  the  department.
 Unless  the  board of the authority makes a preliminary determination in
 its discretion that any particular recommendation is  inconsistent  with
 the  authority's sound fiscal operating practices, any existing contrac-
 tual or operating obligations, or the provision  of  safe  and  adequate
 service,  the  board shall implement such recommendations as part of its
 final rate plan and such final determination shall be deemed to  satisfy
 the  requirements  of  this  subdivision and be considered final for the
 purposes of review under article seventy-eight of the civil practice law
 A. 8894                            11
 
 and rules. The board shall make any such  preliminary  determination  of
 inconsistency  within  thirty  days  of receipt of such recommendations,
 with notice and the basis of such determination being  provided  to  the
 department  of  public  service,  and  contemporaneously  posted  on the
 [websites] WEBSITE of the authority  [and  its  service  provider].  The
 board  shall thereafter, within thirty days of such posting and with due
 advance notice to the public, hold a public hearing with respect to  its
 preliminary determination of inconsistency. At such hearing, the depart-
 ment  of  public  service  shall  present  the basis for its recommenda-
 tions[,] AND the board shall present the basis for its determination  of
 inconsistency  [and  the service provider may present its position]. The
 authority [and the service provider] may, during the time period  before
 such  public  hearing  reach  agreement  with the department on disputed
 issues. Within thirty days after such public hearing, the board  of  the
 authority shall announce its final determination and planned implementa-
 tion  with  respect  to  any such recommendations. The authority's final
 determination of inconsistency shall be subject to any applicable  judi-
 cial  review proceeding, including review available under article seven-
 ty-eight of the civil practice law and rules.
   (bb) Comprehensive and regular management and  operations  audits.  1.
 The authority, and [the] IF NECESSARY, ANY service provider WHO PROVIDED
 SERVICE  DURING  THE PERIOD OF TIME COVERED BY THE AUDIT shall cooperate
 in the undertaking and completion of a regular and comprehensive manage-
 ment and operations audit conducted pursuant to the requirements of this
 subdivision and paragraph (d) of subdivision three of section three-b of
 the public service law. Such audit shall review and evaluate the overall
 operations and management of the authority and service provider, includ-
 ing such operations and management in the  context  of  the  authority's
 duty  to  set  rates  at  the lowest level consistent with standards and
 procedures provided in subdivision (u) of this section, and include, but
 not be limited  to:  (i)  the  AUTHORITY'S  OR  THE  service  provider's
 construction  and  capital  program planning in relation to the needs of
 customers for reliable service;  (ii)  the  overall  efficiency  of  the
 authority's and service provider's operations; (iii) the manner in which
 the authority is meeting its debt service obligations; (iv) the authori-
 ty's  [Fuel  and  Purchased  Power  Cost Adjustment clause] POWER SUPPLY
 CHARGE and recovery of  costs  associated  with  such  clause;  (v)  the
 authority's  [and  service  provider's]  annual budgeting procedures and
 process; (vi) the application, if  any,  of  [the]  performance  metrics
 [designated  in  the  operations services agreement] and the accuracy of
 the data relied upon with respect to such  application;  and  (vii)  the
 authority's compliance with debt covenants.
   2.  The  department  of public service shall notify the authority that
 said department is in the process of initiating a comprehensive  manage-
 ment and operations audit as described in paragraph one of this subdivi-
 sion  in  a  manner  that  ensures the timeliness of such audit, and [in
 accordance with the following timeframe: the first comprehensive manage-
 ment and operations audit shall be initiated as of the effective date of
 chapter eight of the laws of two thousand twelve  and  undertaken  in  a
 manner  and  to  an  extent  that  is  practicable in the context of the
 authority's transition to a new management service structure; the second
 comprehensive management and operations  audit  shall  be  initiated  no
 later than December fifteenth, two thousand sixteen; and all additional]
 SUCH  comprehensive  management and operations audits shall be initiated
 at least once every five years [thereafter]. Within  a  reasonable  time
 after  such  notification to the authority, said department or the inde-
 A. 8894                            12
 
 pendent auditor retained by the authority to undertake such audit  shall
 hold  public  statement hearings, with proper notice, in both Nassau and
 Suffolk counties for the purpose of  receiving  both  oral  and  written
 comments  from  the public on matters related to such audit as described
 in paragraph one of this subdivision.
   3. Each such audit shall be completed within eighteen months of initi-
 ation absent an extension for good cause  shown  by  the  department  of
 public  service  or  the  independent  auditor  under  contract with the
 authority with notice of such extension to the governor,  the  temporary
 president  of the senate, the speaker of the assembly, and the chairs of
 the authority and the department of public service. Such audit shall  be
 provided  to the board of the authority immediately upon its completion.
 The department of public service shall provide notice of  completion  of
 such  audit  to the governor, the temporary president of the senate, the
 speaker of the assembly, and the minority  leaders  of  the  senate  and
 assembly,  and  the  authority, upon receipt of such audit, shall post a
 copy of such audit,  including  findings  and  recommendations,  on  its
 website  [and the website of the service provider].  Unless the board of
 the authority makes a  preliminary  determination  that  any  particular
 finding  or  recommendation contained in such audit is inconsistent with
 the authority's sound fiscal operating practices, any existing  contrac-
 tual  or  operating  obligation,  or the provision for safe and adequate
 service, the board shall implement [or cause  its  service  provider  to
 implement]  such  findings  and  recommendations  in accordance with the
 timeframe specified under such audit.
   4. The board of the authority shall make any preliminary determination
 of inconsistency with respect to  any  such  finding  or  recommendation
 within thirty days of receipt of the audit, with notice and the basis of
 such  determination  being provided to the department of public service.
 Such notice and basis shall be posted contemporaneously on the  authori-
 ty's  website  [and  the  website of the service provider] and the board
 shall, within thirty days of such posting and with due advance notice to
 the public, hold a public hearing with respect to its preliminary deter-
 mination of inconsistency. At such  hearing  the  department  of  public
 service  or  the  independent  auditor  responsible for undertaking such
 audit shall present the basis for its findings and  recommendations  and
 the board shall present the basis for its determination of inconsistency
 [and  the  service  provider  may  present is position]. The authority[,
 service provider] and auditor may during the time period prior  to  such
 public  hearing  reach  agreement on disputed issues. Within thirty days
 after such public hearing, the board of the authority shall announce its
 final determination and planned implementations with respect to any such
 findings and/or recommendations. The authority's final determination  of
 inconsistency  shall  be  subject  to  any  applicable  judicial  review
 proceeding, including review available under  article  seventy-eight  of
 the civil practice law and rules.
   5.  Notwithstanding  the  foregoing, in the event that a comprehensive
 and regular management and operations audit as conducted  in  accordance
 with  this subdivision indicates a finding of fraud, abuse or mismanage-
 ment by a FORMER service provider of the authority, and upon  a  finding
 by  the  public  service commission that reasonable cause exists for the
 basis of such indication, the public service commission may  order  that
 any  recommendations  contained in the regular management and operations
 audit be implemented. The public service commission may also provide  in
 their order, the date in which the recommendations be fully implemented.
 Failure  to comply with any such order can result in the imposition of a
 A. 8894                            13
 
 civil penalty by  the  public  service  commission  against  the  FORMER
 service provider.
   (cc)  To  prepare an emergency response plan pursuant to this subdivi-
 sion.  1. The [service provider] AUTHORITY shall[, in consultation  with
 the  authority,]  prepare and maintain an emergency response plan (i) to
 assure the reasonably prompt restoration of service in the  case  of  an
 emergency  event,  defined  for purposes of this subdivision as an event
 where widespread outages have occurred in the authority's service terri-
 tory due to a storm or other causes beyond the control of the  authority
 [and  the  service  provider],  (ii) consistent with the requirements of
 paragraph (a) of subdivision twenty-one  of  section  sixty-six  of  the
 public  service  law and any regulations and orders adopted thereto, and
 (iii) establishing the separate responsibilities of the  authority  [and
 service  provider].  Such  emergency  response  plan shall include plans
 setting forth how the communication and coordination of efforts  between
 the authority, [service provider,] authority employees, [service provid-
 er  employees,]  authority  company  crews,  [service  provider  company
 crews,] mutual aid crews, other utilities,  local  governments  and  any
 [service  provider  or]  other  entity performing services to assist the
 authority shall occur.  Such emergency response plan shall include iden-
 tification of and outreach plans for customers who have documented their
 need for essential electricity for medical needs,  which  shall  include
 but  not be limited to, apnea monitors for infants, cuirass respirators,
 hemodialysis machines, intravenous feeding machines, intravenous medical
 infusion machines, oxygen concentrators, positive pressure  respirators,
 respirators/ventilators,  rocking bed respirators, suction machines, and
 tank type respirators.
   2. [On or before February third, two thousand fourteen, the  authority
 and  service  provider  shall  submit  an emergency response plan to the
 department of public service for  review.  Contemporaneously  with  such
 submission,  the authority shall provide notice of such proposed plan to
 the secretary of state  for  publication  in  the  state  register,  the
 authority  and  service  provider  each  shall  post  such plan on their
 websites and otherwise make such plan available  for  review  in-person,
 and  afford  members  of  the  public  an  opportunity to submit written
 comments and oral comments pursuant to at least one hearing to  be  held
 each  in  the  county  of Suffolk and the county of Nassau. Such written
 comments must be submitted by March fourteenth, two  thousand  fourteen.
 The  authority  and service provider shall provide a copy of all written
 comments they receive and a transcript of such public  hearings  to  the
 department  of  public  service  for  its consideration in reviewing the
 emergency response plan. The department shall  provide  any  recommenda-
 tions to the authority and service provider with respect to such plan on
 or before April fifteenth, two thousand fourteen. Such plan must be made
 final  by  June second, two thousand fourteen. For each year thereafter,
 the service provider] THE AUTHORITY shall  submit  an  ANNUAL  emergency
 response  plan  to the department of public service, and such department
 shall provide its recommendations, in accordance with a schedule  to  be
 established  by such department and that is consistent with the schedule
 associated with such department's review of similar such plans  provided
 by  electric  corporations pursuant to subdivision twenty-one of section
 sixty-six of the public service law.
   3. By [June second, two thousand fourteen, and by] June first annually
 [thereafter], the  authority  [and  service  provider]  shall  [jointly]
 certify  to  the  department of homeland security and emergency services
 that the emergency response plan ensures, to the greatest extent  feasi-
 A. 8894                            14
 
 ble,  the  timely and safe restoration of energy services after an emer-
 gency consistent with the requirements of paragraph (a)  of  subdivision
 twenty-one  of  SECTION  SIXTY-SIX  OF  the  public  service law and the
 department's recommendations. The filing of such emergency response plan
 shall  also  include  a copy of all written mutual assistance agreements
 among utilities. The authority [and service provider]  shall  file  with
 the  county executives of Nassau and Suffolk county and the mayor of the
 city of New York the most recent version of the emergency response plan,
 and make sure that such amended versions are timely filed.
   4. [Starting in calendar  year  two  thousand  fourteen,  the  service
 provider  annually]  THE AUTHORITY shall ANNUALLY undertake at least one
 drill to implement procedures to practice its emergency  response  plan.
 The [service provider] AUTHORITY shall notify and allow participation in
 such  drill  of all appropriate municipal emergency responders and offi-
 cials.
   5. If, during an emergency event, electric service is not restored  in
 three  days,  the  [service  provider] AUTHORITY shall within sixty days
 from the date of full restoration file  with  the  department  a  report
 constituting  a  review  of  all  aspects  of the preparation and system
 restoration performance during the event, and shall thereafter take into
 consideration any recommendations made by the department associated with
 such review.
   (dd) [On or before January first, two thousand  fifteen,  and  by]  BY
 January  first  of  each  calendar year [thereafter], [to] THE AUTHORITY
 SHALL submit for review to the department of  public  service  a  report
 detailing  the [service provider's] AUTHORITY'S planned capital expendi-
 tures.
   (ee) On or before July first[, two  thousand  fourteen,  and  annually
 thereafter,  to]  OF  EACH  CALENDAR YEAR THE AUTHORITY SHALL submit for
 review to the department of public service any proposed plan related  to
 implementing  energy  efficiency  measures,  distributed  generation  or
 advanced grid technology programs for the purpose provided  pursuant  to
 paragraph  (g)  of  subdivision  three  of section three-b of the public
 service law.
   (ff) To assist and cooperate with the  department  of  public  service
 with respect to any review undertaken pursuant to section three-b of the
 public  service  law, including providing the department with reasonable
 access to all facilities and premises owned or operated by the authority
 [or its service provider], allowing review of all books and  records  of
 the  authority [and its service provider], providing copies of requested
 documents,  allowing  interviews  of  all  appropriate  personnel,   and
 responding in a reasonable and timely manner to any inquiries or report-
 ing  requests  made by the department; provided, however, that the obli-
 gations set forth in this subdivision shall not extend to affiliates  of
 the [service provider] AUTHORITY.
   (gg)  Renewable  generation  and  energy  efficiency  programs. 1. The
 authority in coordination with [the service provider,] the power author-
 ity of the state of New York and the New York state energy research  and
 development  authority  shall,  to  the extent the authority's rates are
 sufficient to provide safe and adequate  transmission  and  distribution
 service, and the measures herein, undertake actions to design and admin-
 ister  renewable  energy  and  energy efficiency measures in the service
 area, with the goal of continuing and expanding such measures that cost-
 effectively reduce system-wide  peak  demand,  minimize  long-term  fuel
 price risk to rate payers, lower emissions, improve environmental quali-
 ty,  and  seek  to  meet New York state climate change and environmental
 A. 8894                            15
 
 goals  AS SET FORTH IN THE CLIMATE LEADERSHIP AND  COMMUNITY  PROTECTION
 ACT ENACTED IN CHAPTER ONE HUNDRED SIX OF THE LAWS OF TWO THOUSAND NINE-
 TEEN.  Such  actions  shall also include implementation of any renewable
 energy  competitive  procurement  or  feed-in-tariff  programs that were
 approved by the authority as of the effective date of the chapter of the
 laws of two thousand thirteen which added this subdivision.
   2. The [service provider] AUTHORITY shall  consider,  consistent  with
 maintaining  system  reliability,  renewable generation and energy effi-
 ciency program results and options in establishing capital plans.
   (hh) [Starting in calendar year two thousand fifteen]  FOR THE  PERIOD
 OF  TIME  NECESSARY TO DETERMINE COMPLIANCE WITH ALL PERFORMANCE METRICS
 FOR PURPOSES OF CALCULATING ANNUAL INCENTIVE  COMPENSATION  PURSUANT  TO
 ANY  OPERATION  SERVICES  AGREEMENT  OF ANY FORMER SERVICE PROVIDER, the
 authority and the service provider shall submit  to  the  department  of
 public  service  for  review,  any and all data, information and reports
 which set forth the service provider's actual performance related to the
 metrics in the operations services agreement, including the  authority's
 evaluation  thereof,  no less than forty-five days prior to the authori-
 ty's determination of the service provider's  annual  incentive  compen-
 sation.
   (ii)  [The]   FOR THE PERIOD OF TIME NECESSARY TO DETERMINE COMPLIANCE
 WITH ALL PERFORMANCE METRICS FOR PURPOSES OF CALCULATING  ANNUAL  INCEN-
 TIVE  COMPENSATION  PURSUANT  TO ANY OPERATION SERVICES AGREEMENT OF ANY
 FORMER SERVICE PROVIDER, THE service provider shall assist and cooperate
 with the department of public service with respect to providing any data
 or information necessary for  the  department  to  post  a  compensation
 statement  for the service provider in accordance with subdivision three
 of section one hundred eleven-a of the public service law.
   § 8. Section 1020-i of the public authorities law, as added by chapter
 517 of the laws of 1986, is amended to read as follows:
   § 1020-i. Subsidiaries. 1. The authority shall have the right to exer-
 cise and perform all or part of its powers and functions through one  or
 more  wholly owned subsidiaries by OPERATING AS THE SOLE MEMBER THEREOF,
 acquiring the voting shares OR MEMBERSHIP INTERESTS thereof or by resol-
 ution of the board directing any of its trustees, officers or  employees
 to  organize  a subsidiary [corporation] pursuant to the business corpo-
 ration law, the not-for-profit corporation law,  THE  LIMITED  LIABILITY
 COMPANY  LAW  or  the  transportation  corporations law. Such resolution
 shall prescribe the purpose for which such subsidiary  [corporation]  is
 to be formed.
   2.  The  authority  may  transfer  to any subsidiary [corporation] any
 moneys, property (real, personal or mixed) or  facilities  in  order  to
 carry out the purposes of this title. Each such subsidiary [corporation]
 shall  have  all  the  privileges,  immunities, tax exemptions and other
 exemptions of the authority to the extent the same are not  inconsistent
 with  the  statute  or  statutes  pursuant  to which such subsidiary was
 [incorporated] ESTABLISHED provided, however, that in any event any such
 subsidiary [corporation] shall be entitled to exemptions from the  state
 public  service  law  and any regulation by, or the jurisdiction of, the
 public service commission, and the state  environmental  quality  review
 act  to  the  extent provided in subdivision two of section one thousand
 twenty-s of this title.
   3. WHEN THE AUTHORITY ACQUIRES EITHER DIRECTLY OR THROUGH A SUBSIDIARY
 THE PRIVATE ENTITY KNOWN AS LONG ISLAND ELECTRIC UTILITY SERVCO LLC, THE
 AUTHORITY SHALL MAINTAIN THE EMPLOYMENT OF THE SERVCO EMPLOYEES WHO  ARE
 SUBJECT  TO  THE  TERMS  OF  ANY EXISTING CONTRACT OR CONTRACTS WITH ANY
 A. 8894                            16
 
 LABOR UNION, AND SHALL ASSUME SUCH LABOR CONTRACTS. UPON ACQUISITION  OF
 SERVCO  BY  THE  AUTHORITY,  SUCH  EMPLOYEES SHALL:   (A) CONTINUE TO BE
 TREATED AS PRIVATE  SECTOR  EMPLOYEES  SUBJECT  TO  THE  NATIONAL  LABOR
 RELATIONS  ACT  AND EXEMPT FROM THE NEW YORK STATE PUBLIC EMPLOYEES FAIR
 EMPLOYMENT ACT; (B) NOT ACQUIRE CIVIL SERVICE STATUS; (C) BE ENTITLED TO
 CONTINUE TO RECEIVE SUCH SALARY AND BENEFITS AS SAID  EMPLOYEES  RECEIVE
 AS  PROVIDED IN THE EXISTING LABOR UNION CONTRACTS AS OF THE DATE OF THE
 AUTHORITY'S ACQUISITION OF ANY MEMBERSHIP INTEREST  IN  SERVCO;  (D)  BE
 ENTITLED  TO  ALL PROVISIONS OF  ANY EXISTING CONTRACT OR CONTRACTS WITH
 LABOR UNIONS; AND (E) HAVE THEIR PENSION AND OTHER  BENEFITS,  INCLUDING
 RETIREMENT  BENEFITS,  CONTINUED IN PLANS THAT ARE OPERATED AND ADMINIS-
 TERED IN COMPLIANCE WITH THE EMPLOYEE RETIREMENT INCOME SECURITY ACT  OF
 1974,  AS  AMENDED (HEREINAFTER "ERISA"), AND THE INTERNAL REVENUE CODE,
 TO THE FULLEST EXTENT ALLOWED BY LAW.   AFTER ACQUISITION OF  SERVCO  BY
 THE AUTHORITY, THE AUTHORITY SHALL HAVE AN OBLIGATION TO BARGAIN IN GOOD
 FAITH  WITH  THE  COLLECTIVE BARGAINING REPRESENTATIVE OF SUCH EMPLOYEES
 PURSUANT TO THE NATIONAL LABOR RELATIONS ACT.  THE AUTHORITY MAY, IN ITS
 DISCRETION, UTILIZE THE SERVICES OF A PROFESSIONAL EMPLOYER ORGANIZATION
 (PEO) AS DEFINED IN SECTION NINE HUNDRED SIXTEEN OF  THE  LABOR  LAW  TO
 MAINTAIN  THE  EMPLOYMENT AND WORKING CONDITIONS OF THE SERVCO EMPLOYEES
 CONSISTENT WITH THE REQUIREMENTS OF THIS SUBDIVISION.
   4. NOTWITHSTANDING ANY PROVISION OF LAW WHICH MAY OR COULD  BE  DEEMED
 TO  THE  CONTRARY,  SUCH  ACQUISITION  OF SERVCO BY OR FOR THE AUTHORITY
 AND/OR AUTHORITY SUBSIDIARY, AND  THE  RIGHTS,  OBLIGATIONS  AND  UNDER-
 TAKINGS  OF  THE  AUTHORITY  IN  CONNECTION THEREWITH AS HEREINABOVE SET
 FORTH, ARE HEREBY DECLARED TO  BE  IN  FURTHERANCE  OF  THE  AUTHORITY'S
 PROPRIETARY,  MARKETPLACE FUNCTION OF PROVIDING A SAFER, MORE EFFICIENT,
 RELIABLE, AND ECONOMICAL SUPPLY OF ELECTRICAL ENERGY WITHIN THE  SERVICE
 AREA, WHICH WILL REALIZE SAVINGS FOR THE RATEPAYERS AND TAXPAYERS IN THE
 SERVICE  AREA  AND  FURTHER  PROTECT THE INTERESTS OF RATEPAYERS AND THE
 ECONOMY IN THE SERVICE AREA.
   § 9. Subdivision 2 of section 1020-p of the public authorities law, as
 added by chapter 517 of the laws of 1986, is amended to read as follows:
   2. The authority AND ALL ITS SUBSIDIARIES shall be required to pay  no
 taxes nor assessments upon any of the property acquired or controlled by
 it  or  upon  its activities in the operation and maintenance thereof or
 upon income  derived  therefrom,  provided  that  nothing  herein  shall
 prevent  the authority from entering into agreements to make payments in
 lieu of taxes with the governing bodies of municipalities,  as  provided
 for in section one thousand twenty-q of this title.
   §  10.  Section  1020-s  of  the public authorities law, as amended by
 chapter 388 of the laws of 2011, subdivision 1 as amended by chapter 681
 of the laws of 2021 and subdivision 3 as added by  chapter  358  of  the
 laws of 2020, is amended to read as follows:
   §  1020-s.  Public service law AND SECTION NINETY-FOUR-C OF THE EXECU-
 TIVE LAW generally not applicable to authority; inconsistent  provisions
 in  certain other acts superseded.  1. The rates, services and practices
 relating to the electricity generated by facilities owned or operated by
 the authority shall not be subject  to  the  provisions  of  the  public
 service  law  or  to  regulation  by, or the jurisdiction of, the public
 service commission OR THE OFFICE OF RENEWABLE ENERGY SITING,  except  to
 the  extent  (a)  article seven of the public service law applies to the
 siting and operation of a major utility transmission facility as defined
 therein, (b) [article ten of such law applies to the siting of a  gener-
 ating  facility  as defined therein, (c)] section eighteen-a of such law
 provides for assessment for certain costs, property or operations, [(d)]
 A. 8894                            17
 
 (C) to the extent that the department  of  public  service  reviews  and
 makes  recommendations  with  respect to the operations and provision of
 services of, and rates and budgets established by, the authority  pursu-
 ant  to section three-b of such law, [(e)] (D) that section seventy-four
 of the public service law applies to qualified  energy  storage  systems
 within  the  authority's jurisdiction, [and (f)] (E) that section seven-
 ty-four-b of the public service law applies  to  Long  Island  community
 choice  aggregation  programs, AND (F) THAT SECTION NINETY-FOUR-C OF THE
 EXECUTIVE LAW APPLIES TO THE SITING OF A MAJOR RENEWABLE ENERGY FACILITY
 AS DEFINED THEREIN.
   2. [The issuance by the authority of its obligations  to  acquire  the
 securities  or  assets of LILCO shall be deemed not to be "state action"
 within the meaning of the state environmental quality  review  act,  and
 such  act  shall not be applicable in any respect to such acquisition or
 any action of the authority to effect such acquisition.
   3.] In the event that a comprehensive and regular management and oper-
 ations audit, as provided by subdivision (bb) of  section  one  thousand
 twenty-f  of  this [article] TITLE, indicates a finding of fraud, abuse,
 or mismanagement by a FORMER service provider of the authority, and upon
 a finding by the public service commission that reasonable cause  exists
 for  the  basis  of  such  indication, the public service commission may
 order that any recommendations contained in the regular  management  and
 operations  audit be implemented. The public service commission may also
 provide in their order, the date in which  any  recommendation  must  be
 fully  implemented.  Failure to comply with any such order can result in
 the imposition of a civil  penalty  by  the  public  service  commission
 against the FORMER service provider or revocation of the service provid-
 er's authority to operate within the state.
   §  11. Section 1020-u of the public authorities law, as added by chap-
 ter 517 of the laws of 1986, is amended to read as follows:
   § 1020-u. Employees of the authority not subject to the public employ-
 ees' fair employment act. All employees  of  the  authority  AND/OR  ANY
 SUBSIDIARIES  shall  be exempt from the provisions of the public employ-
 ees' fair employment act as set forth in article fourteen of  the  civil
 service law.
   § 12. Section 1020-aa of the public authorities law, as added by chap-
 ter 517 of the laws of 1986, is amended to read as follows:
   § 1020-aa. Conflicts of interest. 1. If any member, officer or employ-
 ee  of  the  authority  OR ITS SUBSIDIARY ENTITY shall have an interest,
 either direct or indirect, in any contract to which the authority is, or
 is to be, a party, such interest shall be disclosed to the authority  in
 writing  and  shall  be  set  forth in the minutes of the authority. The
 member, officer or employee having such interest shall  not  participate
 in any action by the authority with respect to such contract.
   2.  No  member,  officer  or  employee shall be deemed to have such an
 interest solely by reason of the ownership of two percent or less of the
 securities of a [corporation] CORPORATE ENTITY which is, or is to be,  a
 party to a contract with the authority OR ITS SUBSIDIARY ENTITY, includ-
 ing without limitation the holding company of any banking institution in
 which the funds of the authority OR ITS SUBSIDIARY ENTITY are, or are to
 be,  deposited  or  which  is,  or is to be, acting as trustee or paying
 agent under any bond or note  resolution,  trust  indenture  or  similar
 instrument to which the authority OR ITS SUBSIDIARY ENTITY is a party.
   3.  Nothing  in this section shall be deemed or construed to limit the
 right of any member, officer or employee of the authority to acquire  an
 interest in bonds or notes of the authority.
 A. 8894                            18

   §  13.  Section  1020-cc  of the public authorities law, as amended by
 section 11 of part A of chapter 173 of the laws of 2013, is  amended  to
 read as follows:
   §  1020-cc.  Authority  subject to certain provisions contained in the
 state finance law, the public service law, the social services  law  and
 the  general  municipal law. 1. (A) All contracts of the authority shall
 be subject to the provisions  of  the  state  finance  law  relating  to
 contracts  made  by  the state. The authority shall also establish rules
 and regulations with respect to providing to its residential gas,  elec-
 tric  and  steam utility customers those rights and protections provided
 in article two and sections one hundred seventeen and one hundred  eigh-
 teen  of  the public service law and section one hundred thirty-one-s of
 the social services law. The authority shall conform to any safety stan-
 dards regarding manual lockable disconnect switches for  solar  electric
 generating equipment established by the public service commission pursu-
 ant  to  subparagraph  (ii)  of  paragraph  (a)  of subdivision five and
 subparagraph (ii) of paragraph (a)  of  subdivision  five-a  of  section
 sixty-six-j of the public service law. The authority shall let contracts
 for construction or purchase of supplies, materials, or equipment pursu-
 ant  to  section one hundred three and paragraph (e) of subdivision four
 of section one hundred twenty-w of the general municipal law.
   (B) NOTWITHSTANDING PARAGRAPH (A)  OF  THIS  SUBDIVISION,  BEFORE  ANY
 CONTRACT:  (I)  MADE FOR OR BY THE AUTHORITY SHALL BE EXECUTED OR BECOME
 EFFECTIVE, WHENEVER SUCH CONTRACT EXCEEDS AN AMOUNT ESTABLISHED  BY  THE
 COMPTROLLER  IN  CONSULTATION  WITH  THE  AUTHORITY,  IT  SHALL FIRST BE
 APPROVED BY THE OFFICE OF THE COMPTROLLER AND FILED IN HIS OR HER OFFICE
 PURSUANT TO SECTION ONE HUNDRED TWELVE OF THE STATE FINANCE LAW,  EXCEPT
 FOR  CATEGORIES  DESCRIBED  IN PARAGRAPHS (C) THROUGH (E) OF SUBDIVISION
 THREE OF SECTION TWENTY-EIGHT HUNDRED  SEVENTY-NINE-A  OF  THIS  CHAPTER
 WHICH  SHALL  NOT  BE  SUBJECT  TO THE BIDDING REQUIREMENTS OR PRE-AUDIT
 REQUIREMENTS OF THE COMPTROLLER PURSUANT TO SECTION ONE  THOUSAND  TWEN-
 TY-MM OF THIS TITLE, BUT MUST BE ENTERED INTO PURSUANT TO GUIDELINES AND
 THRESHOLDS  ESTABLISHED  BY  THE  COMPTROLLER  IN  CONSULTATION WITH THE
 AUTHORITY, AND ANY COLLECTIVE BARGAINING AGREEMENTS.
   2. The authority [and service provider] shall  provide  to  the  state
 comptroller on March thirty-first and September thirtieth of each year a
 report documenting each contract in excess of two hundred fifty thousand
 dollars  per year entered into with a third party and related to manage-
 ment and operation services associated  with  the  authority's  electric
 transmission  and  distribution  system, including the name of the third
 party, the contract term and a description of services or  goods  to  be
 procured,  and post such report on each of their websites. All contracts
 NECESSARY FOR CONDUCTING UTILITY OPERATIONS entered  into  between  [the
 service  provider]  SERVCO  and  third  parties  are  not subject to the
 requirements of subdivision one of this section.
   § 14. Subdivisions 1 and 3 of section 1020-kk of the  public  authori-
 ties  law,  as amended by chapter 49 of the laws of 2022, are amended to
 read as follows:
   1. On or before March thirty-first, two thousand twenty-two and  every
 semi-annual  period  thereafter[: (a)] the authority shall report to the
 governor, the temporary president of the senate and the speaker  of  the
 assembly  regarding  advertising and lobbying on behalf of the authority
 by the authority, the trustees of the authority, or any employee of  the
 authority[;  and  (b) any service provider of the authority shall report
 to the governor, the temporary president of the senate and  the  speaker
 of  the  assembly  regarding  advertising  and lobbying on behalf of the
 A. 8894                            19

 authority, or in connection with the  service  provider's  provision  of
 management  and  operation  services or the operation of the authority's
 electric transmission and distribution system].
   3.  The  authority [and its service providers] shall prepare [separate
 reports] A LOBBYING REPORT to include the following information:
   (a) For lobbying, such report shall include, but not  be  limited  to:
 the name of the trustee, employee of the authority [or service provider]
 engaging in lobbying; the name of the public official or public employee
 that was lobbied; the date and time of the meeting or communication; the
 subject matter of the lobbying, and any expenses incurred by the author-
 ity  [or  its  service  provider]  for  travel,  lodging,  or  meals  in
 connection with such lobbying.
   (b) For advertising, such report shall include, but not be limited to,
 itemization of any public funds spent  on  advertising  and  information
 pertaining  to the advertising marketing plan including measurable goals
 and objectives for the advertising campaign.
   § 15. Section 1020-ll of the public authorities law, as added by chap-
 ter 375 of the laws of 2022, is amended to read as follows:
   § 1020-ll. Pilot thermal energy network projects. Within three  months
 of  the  effective  date of this section, the authority and its [service
 provider] SUBSIDIARY shall submit for review to the department of public
 service at least one and as many as five proposed pilot  thermal  energy
 network projects as defined in subdivision twenty-nine of section two of
 the  public service law. Within six months of the effective date of this
 section, and upon recommendation by the department  of  public  service,
 the  authority  shall  determine whether it is in the public interest to
 approve or modify such pilot thermal energy network projects  and  shall
 [direct  the  service  provider  to] implement such proposed or modified
 pilot thermal energy network projects. The  authority  shall  promulgate
 rules  and regulations consistent with the standards set forth in subdi-
 visions two and three of section sixty-six-t of the public service law.
   § 16. Section 1020-mm of the public authorities  law,  as  amended  by
 chapter 37 of the laws of 2023, is amended to read as follows:
   §  1020-mm.  Prioritization  of  emergency  services. 1. EXTRAORDINARY
 CIRCUMSTANCES, INCLUDING EXCESSIVE COSTS, SHORTAGES OF SUPPLY,  AND  THE
 INFLATED  PRICE  OF  FUEL,  MAY THREATEN THE CAPACITY TO PROVIDE UTILITY
 SERVICE ESSENTIAL TO THE CONTINUED SAFETY, HEALTH, PROSPERITY, AND WELL-
 BEING OF THE PEOPLE OF LONG ISLAND, BY REASON OF THE INTERCONNECTION AND
 INTERDEPENDENCE OF ELECTRIC FACILITIES, THE RELIABILITY OF SUCH  SERVICE
 THROUGHOUT  THE  AREA  REQUIRE EMERGENCY ACTION BY LIPA. IT IS THEREFORE
 DECLARED THAT:
   (A) If, during a widespread prolonged outage  that  affects  at  least
 twenty thousand customers in the service territory of the authority, and
 the  [service  provider] AUTHORITY is not able to restore electric power
 services within twenty-four hours to  any  affected  police  department,
 fire  department,  ambulance  service  or  advanced  life  support first
 response service facility that is prewired with an appropriate  transfer
 switch  for  using  an  alternate  generated power source, [such service
 provider] THE AUTHORITY shall notify the village, town or city in  which
 such facility is located.
   [2.]  (B)  Towns,  cities, and villages shall provide to counties, and
 counties shall to the extent practicable, provide the [service provider]
 AUTHORITY and the division of homeland security and  emergency  services
 with  a  list  of  such  police departments, fire departments, ambulance
 services and advanced life support first response services located with-
 in such municipality's territorial boundaries within  one  year  of  the
 A. 8894                            20
 
 effective date of this section, and periodically thereafter as necessary
 to update such list.
   [3.]  (C) For the purposes of this section, "alternate generated power
 source" shall mean electric generating equipment that is of the capacity
 that is capable of providing adequate electricity to  operate  all  life
 safety  systems  and  the  basic operations of a police department, fire
 department, ambulance service or advanced life  support  first  response
 service.
   2.  TO THE EXTENT NECESSARY, AND PURSUANT TO GUIDELINES AND THRESHOLDS
 ESTABLISHED BY THE COMPTROLLER IN CONSULTATION WITH THE  AUTHORITY,  THE
 AUTHORITY  SHALL BE ENTITLED TO ENTER INTO CONTRACTS FOR EMERGENCY GOODS
 OR SERVICES OR SHORT-TERM  PUBLIC  POWER  PURCHASE  AGREEMENTS,  WITHOUT
 BEING  SUBJECT  TO THE BIDDING REQUIREMENTS OR PRE-AUDIT REQUIREMENTS OF
 THE COMPTROLLER PURSUANT TO SUBDIVISION THREE  OF  SECTION  TWENTY-EIGHT
 HUNDRED  SEVENTY-NINE-A  OF  THIS CHAPTER IN ACCORDANCE WITH SUBDIVISION
 (H) OF SECTION ONE THOUSAND TWENTY-F OF THIS TITLE.  THIS SHALL  INCLUDE
 CONTRACTS  ENTERED  INTO  FOR THE PROCUREMENT OF GOODS, SERVICES OR BOTH
 GOODS AND SERVICES MADE TO  MEET  EMERGENCIES  ARISING  FROM  UNFORESEEN
 CAUSES  OR  TO EFFECT REPAIRS TO CRITICAL INFRASTRUCTURE THAT ARE NECES-
 SARY TO AVOID A DELAY IN THE DELIVERY OF CRITICAL  SERVICES  THAT  COULD
 COMPROMISE  THE  PUBLIC  WELFARE.   CONTRACTS ENTERED INTO FOR EMERGENCY
 GOODS OR SERVICES OR SHORT-TERM PUBLIC POWER PURCHASE  AGREEMENTS  SHALL
 BE  PURSUANT  TO  GUIDELINES  ESTABLISHED  BY  THE COMPTROLLER AND SHALL
 REQUIRE NOTICE TO THE OFFICE OF THE STATE COMPTROLLER WITHIN FORTY-EIGHT
 HOURS.
   § 17. Paragraph a of subdivision 9 of section 24 of the executive law,
 as added by chapter 37 of the laws  of  2023,  is  amended  to  read  as
 follows:
   a.  Whenever  a  local state of emergency is declared pursuant to this
 section and upon receipt of notification by an electric  corporation  or
 the  [service provider] LONG ISLAND POWER AUTHORITY, pursuant to section
 seventy-three-a of the public service law or section one thousand  twen-
 ty-mm  of  the public authorities law, the chief executive shall coordi-
 nate with  affected  police  departments,  fire  departments,  ambulance
 services and advanced life support first response services prewired with
 an  appropriate  transfer  switch for using an alternate generated power
 source for the emergency deployment of alternate generated power  sourc-
 es.
   §  18. Section 3-b of the public service law, as added by section 1 of
 part A of chapter 173 of the laws of 2013, paragraph (a) of  subdivision
 3  as  amended by chapter 479 of the laws of 2017, is amended to read as
 follows:
   § 3-b. Long Island office of the department. 1. There is hereby estab-
 lished in the department an office to review  and  make  recommendations
 with  respect  to the operations and terms and conditions of service of,
 and rates and budgets established by, the Long  Island  power  authority
 [and/or its service provider].
   2. Definitions. As used or referred to in this section:
   (a) "Authority" means the Long Island power authority.
   (b)  "Service  provider" means the entity FORMERLY under contract with
 the authority to provide management and  operation  services  associated
 with  the  authority's electric transmission and distribution system and
 any  subsidiary  of  such  entity  that  provides  such  services  under
 contract.    However,  the  service  provider  and  any affiliate of the
 service provider with whom the authority or service  provider  contracts
 to  provide  services  associated  with  the authority's electric trans-
 A. 8894                            21
 
 mission and distribution system shall  not  be  considered  an  electric
 corporation under this chapter.
   (c)  "Operations services agreement" means an agreement and any amend-
 ments thereto between the Long Island lighting company dba LIPA  or  the
 Long  Island power authority and the service provider to provide manage-
 ment and operation services associated  with  the  authority's  electric
 transmission and distribution system.
   3.  General  powers.  In undertaking the requirements of this section,
 subject to subdivisions (u) and (bb) through (hh) of section  one  thou-
 sand  twenty-f  of  the  public authorities law, the department shall be
 empowered and authorized to:
   (a) Review and make recommendations to the board of  the  Long  Island
 power authority with respect to the rates and charges, including charges
 related to energy efficiency and renewable energy programs, to be estab-
 lished by the authority and become applicable on or after January first,
 two thousand sixteen pursuant to subdivision (u) of section one thousand
 twenty-f of the public authorities law.
   (i)  The purpose of such review is to make recommendations designed to
 ensure that the authority [and the service provider]  provide  safe  and
 adequate  transmission  and  distribution  service  at  rates set at the
 lowest level consistent with sound fiscal operating practices.
   (ii) The department's recommendations shall be designed to be consist-
 ent with ensuring that the revenue requirements  related  to  such  rate
 review  are  sufficient  to  satisfy  the  authority's  obligations with
 respect to its bonds, notes and all other contracts.
   (iii) [In the context of such review, the department may  make  recom-
 mendations  with  regard  to  the compensation or fee structure included
 within the operations services agreement.
   (iv)] In undertaking such review and in making recommendations related
 to the proposed rates and charges, the department shall establish stand-
 ards, policies and procedures that, at a  minimum,  provide  for  public
 statement  and evidentiary hearings and participation of intervenors and
 other parties, and ensure that any final recommendations related to  the
 proposed  rates  and  charges  are  provided to the authority within two
 hundred forty days of the filing with the department of such plan.
   [(v)] (IV) The parties  to  any  such  rate  review  proceeding  shall
 include,  but  not  be limited to, department staff, the authority[, the
 service provider] and, to the extent it deems necessary or  appropriate,
 the utility intervention unit.
   (b)  Review  the  annual capital expenditures [proposed by the service
 provider] and recommend such improvement in the manufacture,  conveying,
 transportation, distribution or supply of electricity, or in the methods
 employed  by the [the service provider] AUTHORITY as in the department's
 judgment allows for safe and adequate service.
   (c) Annually review the emergency response plan of the authority  [and
 the service provider] in accordance with the following requirements:
   (i)  Examine  and  determine  whether  the  emergency response plan is
 consistent with the requirements of paragraph (a) of  subdivision  twen-
 ty-one  of  section  sixty-six  of  this  chapter and any regulations or
 orders promulgated thereto, and to recommend amendments of same; and
   (ii) Review and make recommendations to the authority with respect  to
 the  performance  of  the service provider OR THE AUTHORITY in restoring
 service or otherwise meeting the requirements of the emergency  response
 plan  during an emergency event, defined for purposes of this section as
 an event where widespread  outages  have  occurred  in  the  authority's
 service  territory  due to a storm or other causes beyond the control of
 A. 8894                            22
 
 the authority and its service provider, AS THE CASE  MAY  BE,  including
 making  determinations  with respect to whether the service provider, IF
 APPLICABLE, OR THE AUTHORITY is reasonably able to implement  the  emer-
 gency  response  plan, whether the length of any outages related to such
 emergency were materially longer than they  would  otherwise  have  been
 because  the service provider, IF APPLICABLE, OR THE AUTHORITY failed to
 reasonably implement the emergency response plan, the reasonableness  of
 costs  associated  with such emergency response, the costs, if any, that
 were unreasonably and imprudently incurred  by  the  [service  provider]
 AUTHORITY OR ANY SERVICE PROVIDER, and whether [the] ANY service provid-
 er  would  be liable for any such costs pursuant to the terms and condi-
 tions of [the] ANY THEN APPLICABLE operations services agreement.
   (d) Upon notification to the Long Island power authority, undertake  a
 comprehensive and regular management and operations audit of the author-
 ity  and  ANY  THEN  APPLICABLE service provider pursuant to subdivision
 (bb) of section one thousand twenty-f of the public authorities law. The
 department shall have discretion to have such an audit performed by  its
 staff,  or by an independent contractor. In every case in which an audit
 is required pursuant to subdivision (bb) of section one  thousand  twen-
 ty-f  of the public authorities law performed by an independent auditor,
 the department shall have the authority to select the  auditor,  and  to
 require  the authority to enter into a contract with the auditor that is
 consistent with the contracting-related requirements specified in subdi-
 vision nineteen of section sixty-six of this chapter  and  the  require-
 ments of subdivision (bb) of section one thousand twenty-f of the public
 authorities  law.  Such  contract shall provide further that the auditor
 shall work for and under the direction of the  department  according  to
 such terms as the department may determine are necessary and reasonable.
   (e)  Accept,  investigate, mediate to resolve and make recommendations
 to the Long Island power authority [and/or the service provider] regard-
 ing the resolution of  complaints  from  consumers  in  the  authority's
 service  territory  relating  to,  among  other things, the provision of
 electric service provided by [the service provider and/or] the  authori-
 ty.
   (f)  Review the net metering program implemented under subdivision (h)
 of section one thousand twenty-g of the public authorities law and  make
 recommendations  designed to ensure consistency with the requirements of
 sections sixty-six-j and sixty-six-l of  this  chapter,  and  any  regu-
 lations and orders adopted thereto.
   (g)  Review and make recommendations with respect to any proposed plan
 submitted by the Long Island power authority [and/or the service provid-
 er] related to implementation of energy efficiency measures, distributed
 generation or advanced grid technology programs having  the  purpose  of
 providing  customers  with  tools  to  more  efficiently and effectively
 manage their energy usage and utility bills, and improving system  reli-
 ability and power quality.
   [(h)  Review  the  data, information and reports submitted pursuant to
 subdivision (hh) of section one thousand twenty-f of the public authori-
 ties law and other pertinent information related to the metrics  in  the
 operations  services agreement, the Long Island power authority's evalu-
 ation of such data, information and reports, and make recommendations to
 the authority with respect to the service provider's  annual  incentive-
 based  compensation within thirty days of receipt of such evaluation and
 information.]
   4. Review and inspection. To undertake the requirements of subdivision
 [two] THREE of this section,  the  department  shall  be  authorized  to
 A. 8894                            23
 
 inspect  all  premises and facilities owned or operated by the authority
 and the service provider, review all books and records of the  authority
 and  the  service  provider,  interview  all  appropriate personnel, and
 require annual reporting consistent with the requirements of subdivision
 six  of section sixty-six of this chapter and any regulations and orders
 adopted thereto; provided, however, that this authority shall not extend
 to affiliates of the service provider.
   § 19. Paragraph (c) of subdivision 2 of section  74-b  of  the  public
 service  law, as added by chapter 681 of the laws of 2021, is amended to
 read as follows:
   (c) the development of a data security  agreement  to  be  adopted  by
 participating  eligible  municipalities,  energy  service companies, the
 Long Island power authority, and Long  Island  power  authority  service
 providers, IF APPLICABLE;
   § 20.  Paragraph (a) of subdivision  2  of  section 112 of  the  state
 finance  law  is  amended  by adding a new subparagraph (iii) to read as
 follows:
   (III) BEFORE THE LONG ISLAND POWER AUTHORITY ENTERS INTO ANY  CONTRACT
 WHICH  EXCEEDS  AN AMOUNT ESTABLISHED BY THE COMPTROLLER IN CONSULTATION
 WITH SUCH AUTHORITY, IT SHALL FIRST BE APPROVED BY  THE  OFFICE  OF  THE
 STATE  COMPTROLLER AND FILED IN HIS OR HER OFFICE, EXCEPT THAT CONTRACTS
 ENTERED INTO FOR EMERGENCY GOODS AND SERVICES OR SHORT-TERM PUBLIC POWER
 PURCHASE CONTRACTS MUST COMPLY WITH  GUIDELINES  AND  THRESHOLDS  ESTAB-
 LISHED  BY  THE  COMPTROLLER  IN CONSULTATION WITH THE LONG ISLAND POWER
 AUTHORITY.  THE LONG ISLAND POWER AUTHORITY SHALL NOT BE SUBJECT TO  THE
 FIFTY THOUSAND DOLLAR LIMITATION SET FORTH IN CLAUSE ONE OF SUBPARAGRAPH
 (I) OF THIS PARAGRAPH.
   §  21. The opening paragraph of subdivision 1 of section 2827-a of the
 public authorities law, as added by chapter 506 of the laws of 2009,  is
 amended to read as follows:
   Notwithstanding  any  law  to  the  contrary, no state authority shall
 hereafter have the power to organize any subsidiary  corporation  unless
 the  legislature  shall have enacted a law granting such state authority
 such power for the organization of  a  specific  corporation,  provided,
 however,  THAT  THE  LONG ISLAND POWER AUTHORITY SHALL HAVE THE POWER TO
 ORGANIZE A SUBSIDIARY CORPORATION AS AUTHORIZED  UNDER  TITLE  ONE-A  OF
 ARTICLE  FIVE  OF  THIS  CHAPTER,  AND  PROVIDED,  FURTHER, that a state
 authority may organize a subsidiary corporation pursuant to the  follow-
 ing requirements:
   §  22.  Severability. If any provisions of this act or the application
 thereof shall for any reason be  adjudged  by  any  court  of  competent
 jurisdiction  to  be  invalid, such judgment shall not affect, impair or
 invalidate the remainder of this act, but shall be confined in its oper-
 ation to the provisions thereof directly involved in the controversy  in
 which the judgment shall have been rendered.
   § 23. This act shall take effect January 1, 2026; provided however, if
 chapter 728 of the laws of 2022 shall not have taken effect on or before
 such  date  then  sections  sixteen and seventeen of this act shall take
 effect on the same date and in the same manner as such  chapter  of  the
 laws of 2022, takes effect.