S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  1672

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                            January 12, 2015
                               ___________

Introduced  by  M.  of  A.  BRENNAN,  McDONALD,  HEVESI -- read once and
  referred to the Committee on Corporations, Authorities and Commissions

AN ACT to amend the public authorities law, in relation  to  authorizing
  the power authority of the state of New York and the Long Island power
  authority  to  participate  in public-private transmission projects to
  improve the state's electric transmission grid

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Legislative  findings and purpose. The legislature hereby
finds and determines that:
  1. The state's vital electric transmission grid  is  aging,  congested
and  subject  to  outages caused by storms, obsolescence and the growing
demands for energy by the  state's  residents,  and  such  problems  and
conditions  pose  serious  threats  to  the  health, welfare, safety and
economic well-being of the people of the state of New York.
  2. The condition and operation of the  state's  electric  transmission
grid  is  a matter of state concern, and it is in the public interest to
provide for the means  to  repair,  replace,  reinforce,  modernize  and
expand  the  state's  electric  transmission grid to ensure the safe and
reliable provision of electric service to the state's residents now  and
into the future.
  3.  A  modernized  electric  transmission grid and energy highway will
also encourage investments  in  new  energy-related  infrastructure  and
technologies,  facilitate the development and integration into the power
grid of renewable energy resources, and stimulate and  support  economic
development in the state. Public-private transmission projects undertak-
en  jointly by the owner of transmission facilities, systems and infras-
tructure, including the power authority of the state of New York and the
Long Island power authority, which provide  for  the  ongoing  planning,
construction,  owning,  operating, maintaining and expanding of electric
transmission facilities, systems and  infrastructure  can  serve  as  an

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02506-02-5
              

A. 1672                             2

effective  means to address the aforementioned problems and concerns and
stimulate ongoing critical investment in  the  state's  electric  trans-
mission grid.
  4.  The purposes of this act can be achieved, while managing and miti-
gating potential liabilities, by authorizing the power authority of  the
state  of New York and the Long Island power authority to participate in
such public-private  transmission  projects  through  the  formation  of
subsidiary companies.
  S 2. Section 1001 of the public authorities law is amended by adding a
new closing paragraph to read as follows:
  IT  IS FURTHER DECLARED THAT: (A) THERE SHOULD BE FULL COOPERATION AND
COORDINATION AMONG PRIVATE AND PUBLIC OWNERS AND OPERATORS  OF  ELECTRIC
TRANSMISSION  FACILITIES,  SYSTEMS  AND  INFRASTRUCTURE  IN  THE  STATE,
INCLUDING THE AUTHORITY, FOR THE PURPOSE OF EXPEDITIOUSLY  CONSTRUCTING,
REPAIRING,  REPLACING, REINFORCING, MODERNIZING OR EXPANDING THE STATE'S
ELECTRIC TRANSMISSION GRID; (B) IT  IS  DESIRABLE  THAT  THE  AUTHORITY,
WHICH  OWNS  AND  OPERATES  ELECTRIC  TRANSMISSION  ASSETS IN THE STATE,
PARTICIPATE IN PUBLIC-PRIVATE TRANSMISSION PROJECTS THAT ARE  UNDERTAKEN
BY  A  LIMITED  LIABILITY  COMPANY  OR  OTHER APPROPRIATE ORGANIZATIONAL
STRUCTURE, THROUGH A SUBSIDIARY  COMPANY  FORMED  BY  THE  AUTHORITY  AS
AUTHORIZED  BY THIS TITLE; AND (C) THE AUTHORITY SHOULD BE AUTHORIZED TO
PARTICIPATE IN PUBLIC-PRIVATE TRANSMISSION PROJECTS AND TRANSFER  TRANS-
MISSION  ASSETS  OR  ANY INTEREST THEREIN IN CONNECTION WITH ITS PARTIC-
IPATION IN SUCH A LIMITED LIABILITY COMPANY OR OTHER APPROPRIATE  ORGAN-
IZATIONAL  STRUCTURE  ON  SUCH TERMS AND CONDITIONS AS THE AUTHORITY MAY
NEGOTIATE.
  S 3. Section 1005 of the public authorities law is amended by adding a
new subdivision 25 to read as follows:
  25. A. FOR PURPOSES OF THIS SUBDIVISION,  THE  FOLLOWING  TERMS  SHALL
HAVE THE MEANINGS INDICATED:
  (I)   "SUBSIDIARY   COMPANY"   MEANS   A  SUBSIDIARY  COMPANY  FORMED,
WHOLLY-OWNED AND CONTROLLED BY THE  AUTHORITY  IN  ACCORDANCE  WITH  AND
SUBJECT  TO THE BUSINESS CORPORATION LAW, THE NOT-FOR-PROFIT CORPORATION
LAW, THE LIMITED LIABILITY COMPANY  LAW  OR  THE  TRANSPORTATION  CORPO-
RATIONS LAW.
  (II)  "TRANSCO  MASTER  AGREEMENT" MEANS A WRITTEN AGREEMENT PROVIDING
FOR THE FORMATION AND OPERATION OF A LIMITED LIABILITY COMPANY OR  OTHER
ORGANIZATIONAL  STRUCTURE  TO  SERVE  AS  A  TRANSCO  COMPANY  AND WHICH
PROVIDES FOR, AMONG OTHER THINGS, THE RIGHTS AND OBLIGATIONS OF  MEMBERS
OF SUCH TRANSCO COMPANY.
  (III)  "TRANSCO  ANCILLARY AGREEMENT" MEANS A WRITTEN AGREEMENT, OTHER
THAN A TRANSCO PROJECT AGREEMENT, BETWEEN THE  AUTHORITY  OR  SUBSIDIARY
COMPANY  AND  THE  TRANSCO  COMPANY AND/OR MEMBERS OF A TRANSCO COMPANY,
MADE IN ACCORDANCE WITH THE TRANSCO MASTER AGREEMENT, FOR THE PURPOSE OF
IMPLEMENTING THE TRANSCO MASTER AGREEMENT.
  (IV) "TRANSCO COMPANY" MEANS AN ENTITY FORMED  IN  ACCORDANCE  WITH  A
TRANSCO  MASTER  AGREEMENT PRIMARILY  FOR THE PURPOSE OF ENGAGING IN THE
BUSINESS OF PLANNING, CONSTRUCTING, OWNING, OPERATING, MAINTAINING,  AND
EXPANDING  ELECTRIC  TRANSMISSION FACILITIES, SYSTEMS AND INFRASTRUCTURE
SERVING THE PEOPLE OF THE STATE OF NEW YORK.
  (V) "TRANSCO PROJECT" MEANS A PROJECT UNDERTAKEN BY THE TRANSCO COMPA-
NY IN ACCORDANCE WITH A TRANSCO MASTER AGREEMENT.
  (VI) "TRANSCO PROJECT AGREEMENT" MEANS A WRITTEN AGREEMENT BETWEEN THE
AUTHORITY OR SUBSIDIARY COMPANY AND THE TRANSCO COMPANY  AND/OR  MEMBERS
OF  A TRANSCO COMPANY, MADE IN ACCORDANCE WITH THE TRANSCO MASTER AGREE-
MENT, THAT RELATES TO A SPECIFIC TRANSCO PROJECT.

A. 1672                             3

  (VII) "TRANSMISSION ASSETS" MEANS: (1) ALL PHYSICAL ASSETS  (INCLUDING
BUT  NOT  LIMITED  TO  ELECTRICAL  TRANSMISSION LINES, POLES, TOWERS AND
SIMILAR STRUCTURES, CONDUITS, SUBSTATIONS, CONVERTER STATIONS, TRANSFOR-
MERS, CONDUCTORS, INSULATORS,  SWITCHING  DEVICES,  CONTROLS,  BREAKERS,
BUSES, STATIONS, RECTIFIERS, REGULATORS, EMERGENCY AND PROTECTIVE EQUIP-
MENT  AND  DEVICES, UTILITY INTERCONNECTIONS AND OTHER EQUIPMENT USED OR
NECESSARY FOR THE CONTROL, DISPATCH, RECEIPT AND DELIVERY OF  ENERGY  BY
SUCH  FACILITIES)  USED  FOR  THE  PURPOSE OF TRANSMITTING OR DELIVERING
DIRECT OR ALTERNATING CURRENT ELECTRIC ENERGY AT VOLTAGES  PRIMARILY  OF
ONE  HUNDRED KILOVOLTS OR HIGHER TO LOADS OR INTERCONNECTION POINTS; AND
(2) ALL ASSOCIATED (A) TANGIBLE AND INTANGIBLE PROPERTY USED TO OPERATE,
CONTROL, PROTECT AND MAINTAIN SUCH ASSETS, (B) REAL PROPERTY RIGHTS  FOR
LANDS  AND  RIGHTS-OF-WAY,  SITES,  AND  PLACES IN WHICH SUCH ASSETS ARE
SITUATED OR INSTALLED, AND (C) LEGAL  AND  REGULATORY  RIGHTS,  AUTHORI-
ZATIONS,  PERMITS, AND CONSENTS OF ANY NATURE TO OWN, OCCUPY, CONSTRUCT,
USE, OPERATE AND MAINTAIN, AND RECEIVE OR DISPOSE OF REVENUES FROM  SUCH
ASSETS  OR  LANDS  ON  WHICH  SUCH ASSETS ARE SITUATED, EXISTING, OWNED,
LEASED, DESIGNED, USED AND OPERATED.
  B. NOTWITHSTANDING THE PROVISIONS OF ANY OTHER LAW, THE AUTHORITY  MAY
(I)  PARTICIPATE IN PUBLIC/PRIVATE PARTNERSHIPS TO PROVIDE FOR THE MEANS
TO CONSTRUCT, REPAIR,  REPLACE,  REINFORCE,  MODERNIZE  AND  EXPAND  THE
STATE'S  ELECTRIC  TRANSMISSION  GRID  TO  ENSURE  THE SAFE AND RELIABLE
PROVISION OF ELECTRIC SERVICE TO THE STATE'S RESIDENTS NOW AND INTO  THE
FUTURE,  (II) FORM A SUBSIDIARY COMPANY FOR THE PURPOSE OF PARTICIPATING
IN A TRANSCO COMPANY, (III) PARTICIPATE IN THE TRANSCO COMPANY BY  CAUS-
ING  THE SUBSIDIARY COMPANY TO BECOME A PARTY TO A TRANSCO MASTER AGREE-
MENT AND EXERCISE THE RIGHTS AND PERFORM THE OBLIGATIONS  OF  A  TRANSCO
COMPANY MEMBER AS MAY BE PROVIDED FOR IN A TRANSCO MASTER AGREEMENT, AND
(IV)  EXERCISE THE OTHER POWERS AND DUTIES PROVIDED FOR BY THIS SUBDIVI-
SION.
  C. NOTWITHSTANDING THE PROVISIONS OF ANY OTHER LAW, IN ADDITION TO ANY
OTHER POWERS AND DUTIES GRANTED TO IT UNDER THIS  TITLE,  THE  AUTHORITY
SHALL BE AUTHORIZED TO:
  (I)  EXERCISE  ALL  OF  THE  RIGHTS AND PRIVILEGES ASSOCIATED WITH ANY
OWNERSHIP INTEREST IN OR ORGANIZER OF THE SUBSIDIARY COMPANY;
  (II) ISSUE ITS BONDS, NOTES AND  OTHER  EVIDENCE  OF  INDEBTEDNESS  TO
FINANCE  THE OPERATIONS OF THE SUBSIDIARY COMPANY, INCLUDING THE SUBSID-
IARY COMPANY'S PARTICIPATION IN AND OBLIGATIONS UNDERTAKEN IN CONNECTION
WITH A TRANSCO COMPANY;
  (III) LEND, OR OTHERWISE TRANSFER MONIES TO  THE  SUBSIDIARY  COMPANY,
INCLUDING  THE  PROCEEDS OF THE AUTHORITY'S BONDS, NOTES, OTHER EVIDENCE
OF INDEBTEDNESS AND OTHER AUTHORITY FUNDS;
  (IV) RECEIVE MONIES FROM THE SUBSIDIARY COMPANY, INCLUDING MONIES THAT
RESULT FROM THE OPERATION OF THE TRANSCO COMPANY;
  (V) AS DEEMED FEASIBLE AND ADVISABLE BY THE TRUSTEES, TRANSFER TO  THE
SUBSIDIARY  COMPANY  TRANSMISSION  ASSETS OR INTERESTS THEREIN THAT HAVE
BEEN OR ARE EXPECTED TO BE USED IN PROJECTS UNDERTAKEN  BY  THE  TRANSCO
COMPANY FOR SUCH CONSIDERATION AND ON SUCH OTHER TERMS AND CONDITIONS AS
THE AUTHORITY SHALL NEGOTIATE;
  (VI)  RECEIVE  FROM  THE SUBSIDIARY COMPANY OR THE TRANSCO COMPANY ANY
PERSONAL OR REAL PROPERTY;
  (VII) ENTER INTO GUARANTEE AGREEMENTS IN CONNECTION WITH  THE  SUBSID-
IARY COMPANY'S PARTICIPATION IN THE TRANSCO COMPANY;
  (VIII)  ENTER  INTO  CONTRACTS  AND  OTHER FORMS OF AGREEMENT WITH THE
TRANSCO COMPANY, THE SUBSIDIARY COMPANY AND OTHER MEMBERS OF THE TRANSCO
COMPANY;

A. 1672                             4

  (IX) PLEDGE OR ASSIGN ALL OR ANY PORTION OF ANY INTEREST IN A  TRANSCO
COMPANY;
  (X) TRANSFER AND RECEIVE ALL OR ANY PORTION OF ANY INTEREST IN A TRAN-
SCO COMPANY;
  (XI)  SELL,  PURCHASE, OR OTHERWISE TRANSFER ALL OR ANY PORTION OF ANY
INTEREST IN A TRANSCO COMPANY  ON  SUCH  TERMS  AND  CONDITIONS  AS  THE
AUTHORITY DEEMS APPROPRIATE;
  (XII)  ASSIGN  ONE  OR MORE EMPLOYEES TO PROVIDE SERVICES TO A TRANSCO
COMPANY FOR A SPECIFIED PERIOD OF TIME, PROVIDED THAT ANY SUCH  EMPLOYEE
SHALL CONTINUE TO BE AN EMPLOYEE OF THE AUTHORITY; AND
  (XIII) DISSOLVE OR TERMINATE THE SUBSIDIARY COMPANY IN ACCORDANCE WITH
APPLICABLE LAW.
  D.  NOTWITHSTANDING THE PROVISIONS OF ANY OTHER LAW, NO TRUSTEE, OFFI-
CER OR EMPLOYEE OF THE STATE, OR OF ANY STATE AGENCY,  PUBLIC  AUTHORITY
OR  PUBLIC  BENEFIT  CORPORATION,  SHALL  BE DEEMED TO HAVE FORFEITED OR
SHALL FORFEIT SUCH PERSON'S OFFICE OR EMPLOYMENT OR ANY BENEFITS ASSOCI-
ATED THEREWITH BY REASON OF SUCH PERSON'S ACCEPTANCE OF  MEMBERSHIP  ON,
OR  SUCH  PERSON  BEING  AN  OFFICER,  EMPLOYEE OR AGENT OF A SUBSIDIARY
COMPANY, OR BY REASON OF  SUCH  PERSON'S  PROVISION  OF  SERVICES  TO  A
SUBSIDIARY COMPANY.
  E.  THE  PROVISIONS  OF SECTION TWENTY-EIGHT HUNDRED SEVENTY-NINE-A OF
THIS CHAPTER SHALL BE APPLICABLE TO  ANY  TRANSCO  MASTER  AGREEMENT  TO
WHICH THE AUTHORITY OR SUBSIDIARY COMPANY IS A PARTY, BUT SHALL BE INAP-
PLICABLE TO ANY TRANSCO ANCILLARY AGREEMENT OR TRANSCO PROJECT AGREEMENT
THAT  OTHERWISE  SATISFIES  THE  REQUIREMENTS OF PARAGRAPH (A) OR (B) OF
SUBDIVISION ONE OF SUCH SECTION PROVIDED THAT (I) A  FINAL  OR  SUBSTAN-
TIALLY  NEGOTIATED  FORM  OF SUCH TRANSCO ANCILLARY AGREEMENT OR TRANSCO
PROJECT AGREEMENT, AS THE CASE MAY BE, IS ANNEXED TO  A  TRANSCO  MASTER
AGREEMENT  THAT  HAS BECOME VALID AND ENFORCEABLE IN ACCORDANCE WITH THE
PROVISIONS OF SECTION TWENTY-EIGHT HUNDRED SEVENTY-NINE-A OF THIS  CHAP-
TER,  AND  (II)  IN  THE  CASE OF A TRANSCO PROJECT AGREEMENT, THE FINAL
EXECUTED FORM OF SUCH TRANSCO PROJECT AGREEMENT IS LIMITED TO A  TRANSCO
PROJECT THAT WAS IDENTIFIED IN SUCH TRANSCO MASTER AGREEMENT.
  F.  THE  PROVISIONS  OF  TITLE  FIVE-A OF ARTICLE NINE OF THIS CHAPTER
SHALL BE INAPPLICABLE TO ANY DISPOSAL OF PROPERTY BY  THE  AUTHORITY  OR
SUBSIDIARY  COMPANY  THAT  (I) IS OTHERWISE AUTHORIZED BY THIS TITLE, OR
(II) IS MADE IN ACCORDANCE WITH A  TRANSCO  MASTER  AGREEMENT  THAT  HAS
BECOME  VALID  AND  ENFORCEABLE  IN  ACCORDANCE  WITH  THE PROVISIONS OF
SECTION TWENTY-EIGHT HUNDRED SEVENTY-NINE-A OF THIS CHAPTER.
  G. NO ACTS OR ACTIVITIES TAKEN OR PROPOSED TO BE TAKEN BY THE AUTHORI-
TY OR A SUBSIDIARY COMPANY PURSUANT TO THE PROVISIONS OF  THIS  SUBDIVI-
SION,  INCLUDING  THE  EXECUTION  OF A TRANSCO MASTER AGREEMENT, AND THE
ISSUANCE OF BONDS, NOTES, OR OTHER OBLIGATIONS, SHALL BE  DEEMED  TO  BE
"ACTIONS" FOR THE PURPOSES OR WITHIN THE MEANING OF ARTICLE EIGHT OF THE
ENVIRONMENTAL CONSERVATION LAW.
  H.  NOTWITHSTANDING THE PROVISIONS OF ANY OTHER LAW, THE AUTHORITY AND
THE SUBSIDIARY COMPANY MAY ONLY PARTICIPATE IN A  TRANSCO  COMPANY  THAT
CONSTRUCTS,  REPAIRS, REPLACES, REINFORCES, MODERNIZES OR EXPANDS TRANS-
MISSION ASSETS, AND MAY  NOT  PARTICIPATE  IN  A  TRANSCO  COMPANY  THAT
FINANCES OR CONSTRUCTS NEW ELECTRIC GENERATING FACILITIES.
  S 4. Section 1020-a of the public authorities law, as added by chapter
517 of the laws of 1986, is amended by adding a new closing paragraph to
read as follows:
  THE  LEGISLATURE  FURTHER FINDS AND DECLARES THAT: (I) THERE SHOULD BE
FULL COOPERATION AND COORDINATION AMONG PRIVATE AND  PUBLIC  OWNERS  AND
OPERATORS  OF  ELECTRIC TRANSMISSION FACILITIES, SYSTEMS AND INFRASTRUC-

A. 1672                             5

TURE IN THE STATE, INCLUDING THE AUTHORITY, FOR  THE  PURPOSE  OF  EXPE-
DITIOUSLY  CONSTRUCTING,  REPAIRING, REPLACING, REINFORCING, MODERNIZING
OR EXPANDING THE STATE'S ELECTRIC TRANSMISSION GRID; (II) IT IS  DESIRA-
BLE  THAT  THE  AUTHORITY, WHICH OWNS AND OPERATES ELECTRIC TRANSMISSION
ASSETS  IN  THE  STATE,  PARTICIPATES  IN  PUBLIC-PRIVATE   TRANSMISSION
PROJECTS  THAT  ARE  UNDERTAKEN  BY A LIMITED LIABILITY COMPANY OR OTHER
APPROPRIATE  ORGANIZATIONAL  STRUCTURE,  THROUGH  A  SUBSIDIARY  COMPANY
FORMED  BY  THE  AUTHORITY  AS  AUTHORIZED  BY THIS TITLE; AND (III) THE
AUTHORITY SHOULD BE AUTHORIZED TO PARTICIPATE IN  PUBLIC-PRIVATE  TRANS-
MISSION PROJECTS AND TRANSFER TRANSMISSION ASSETS OR ANY INTEREST THERE-
IN  IN  CONNECTION  WITH  ITS  PARTICIPATION IN SUCH A LIMITED LIABILITY
COMPANY OR OTHER APPROPRIATE ORGANIZATIONAL STRUCTURE ON SUCH TERMS  AND
CONDITIONS AS THE AUTHORITY MAY NEGOTIATE.
  S 5. Subdivision 2 of section 1020-c of the public authorities law, as
added by chapter 517 of the laws of 1986, is amended to read as follows:
  2.  The area of operations of the authority shall be the service area,
PROVIDED THAT THE AUTHORITY OR SUBSIDIARY COMPANY MAY OWN AN INTEREST IN
TRANSMISSION ASSETS THAT ARE LOCATED IN WHOLE OR  IN  PART  OUTSIDE  THE
SERVICE AREA.
  S 6. Section 1020-f of the public authorities law is amended by adding
a new subdivision (g-1) to read as follows:
  (G-1)  (I)  FOR PURPOSES OF THIS SUBDIVISION, THE FOLLOWING TERMS HAVE
THE MEANINGS INDICATED:
  1.  "SUBSIDIARY  COMPANY"   MEANS   A   SUBSIDIARY   COMPANY   FORMED,
WHOLLY-OWNED  AND  CONTROLLED  BY  THE  AUTHORITY IN ACCORDANCE WITH AND
SUBJECT TO THE BUSINESS CORPORATION LAW, THE NOT-FOR-PROFIT  CORPORATION
LAW,  THE  LIMITED  LIABILITY  COMPANY  LAW OR THE TRANSPORTATION CORPO-
RATIONS LAW.
  2. "TRANSCO MASTER AGREEMENT" MEANS A WRITTEN AGREEMENT PROVIDING  FOR
THE  FORMATION  AND  OPERATION  OF  A LIMITED LIABILITY COMPANY OR OTHER
ORGANIZATIONAL STRUCTURE  TO  SERVE  AS  A  TRANSCO  COMPANY  AND  WHICH
PROVIDES  FOR, AMONG OTHER THINGS, THE RIGHTS AND OBLIGATIONS OF MEMBERS
OF SUCH TRANSCO COMPANY.
  3. "TRANSCO ANCILLARY AGREEMENT" MEANS A WRITTEN AGREEMENT, OTHER THAN
A TRANSCO PROJECT AGREEMENT, BETWEEN THE AUTHORITY OR SUBSIDIARY COMPANY
AND THE TRANSCO COMPANY AND/OR MEMBERS OF A  TRANSCO  COMPANY,  MADE  IN
ACCORDANCE  WITH THE TRANSCO MASTER AGREEMENT, FOR THE PURPOSE OF IMPLE-
MENTING THE TRANSCO MASTER AGREEMENT.
  4. "TRANSCO COMPANY" MEANS AN ENTITY FORMED IN ACCORDANCE WITH A TRAN-
SCO MASTER AGREEMENT PRIMARILY FOR THE PURPOSE OF ENGAGING IN THE  BUSI-
NESS  OF  PLANNING,  CONSTRUCTING,  OWNING,  OPERATING, MAINTAINING, AND
EXPANDING ELECTRIC TRANSMISSION FACILITIES, SYSTEMS  AND  INFRASTRUCTURE
SERVING THE PEOPLE OF THE STATE OF NEW YORK.
  5. "TRANSCO PROJECT" MEANS A PROJECT UNDERTAKEN BY THE TRANSCO COMPANY
IN ACCORDANCE WITH A TRANSCO MASTER AGREEMENT.
  6.  "TRANSCO  PROJECT AGREEMENT" MEANS A WRITTEN AGREEMENT BETWEEN THE
AUTHORITY OR SUBSIDIARY COMPANY AND THE TRANSCO COMPANY  AND/OR  MEMBERS
OF  A TRANSCO COMPANY, MADE IN ACCORDANCE WITH THE TRANSCO MASTER AGREE-
MENT, THAT RELATES TO A SPECIFIC TRANSCO PROJECT.
  7. "TRANSMISSION ASSETS" MEANS: (A) ALL PHYSICAL ASSETS (INCLUDING BUT
NOT LIMITED TO ELECTRICAL TRANSMISSION LINES, POLES, TOWERS AND  SIMILAR
STRUCTURES,  CONDUITS,  SUBSTATIONS,  CONVERTER  STATIONS, TRANSFORMERS,
CONDUCTORS, INSULATORS, SWITCHING DEVICES,  CONTROLS,  BREAKERS,  BUSES,
STATIONS, RECTIFIERS, REGULATORS, EMERGENCY AND PROTECTIVE EQUIPMENT AND
DEVICES,  UTILITY INTERCONNECTIONS AND OTHER EQUIPMENT USED OR NECESSARY
FOR THE CONTROL, DISPATCH, RECEIPT AND DELIVERY OF ENERGY BY SUCH FACIL-

A. 1672                             6

ITIES) USED FOR THE PURPOSE OF  TRANSMITTING  OR  DELIVERING  DIRECT  OR
ALTERNATING CURRENT ELECTRIC ENERGY AT VOLTAGES PRIMARILY OF ONE HUNDRED
KILOVOLTS  OR  HIGHER  TO  LOADS  OR INTERCONNECTION POINTS; AND (B) ALL
ASSOCIATED  (I)  TANGIBLE  AND  INTANGIBLE  PROPERTY  USED  TO  OPERATE,
CONTROL, PROTECT AND MAINTAIN SUCH ASSETS, (II) REAL PROPERTY RIGHTS FOR
LANDS AND RIGHTS-OF-WAY, SITES, AND PLACES  IN  WHICH  SUCH  ASSETS  ARE
SITUATED  OR  INSTALLED, AND (III) LEGAL AND REGULATORY RIGHTS, AUTHORI-
ZATIONS, PERMITS, AND CONSENTS OF ANY NATURE TO OWN, OCCUPY,  CONSTRUCT,
USE,  OPERATE AND MAINTAIN, AND RECEIVE OR DISPOSE OF REVENUES FROM SUCH
ASSETS OR LANDS ON WHICH SUCH  ASSETS  ARE  SITUATED,  EXISTING,  OWNED,
LEASED, DESIGNED, USED AND OPERATED.
  (II)  NOTWITHSTANDING  THE  PROVISIONS OF ANY OTHER LAW, INCLUDING THE
PROVISIONS OF SECTION ONE THOUSAND TWENTY-I OF THIS TITLE, THE AUTHORITY
MAY 1. FORM A SUBSIDIARY COMPANY FOR THE PURPOSE OF PARTICIPATING  IN  A
TRANSCO  COMPANY, 2.   PARTICIPATE IN THE TRANSCO COMPANY BY CAUSING THE
SUBSIDIARY COMPANY TO BECOME A PARTY TO A TRANSCO MASTER  AGREEMENT  AND
EXERCISE  THE  RIGHTS  AND  PERFORM THE OBLIGATIONS OF A TRANSCO COMPANY
MEMBER AS MAY BE PROVIDED FOR IN A  TRANSCO  MASTER  AGREEMENT,  AND  3.
EXERCISE THE OTHER POWERS AND DUTIES PROVIDED FOR BY THIS SUBDIVISION.
  (III)  NOTWITHSTANDING THE PROVISIONS OF ANY OTHER LAW, IN ADDITION TO
ANY OTHER POWERS AND DUTIES GRANTED TO IT UNDER THIS TITLE, THE AUTHORI-
TY SHALL BE AUTHORIZED TO:
  1.   PARTICIPATE IN PUBLIC/PRIVATE PARTNERSHIPS  TO  PROVIDE  FOR  THE
MEANS  TO CONSTRUCT, REPAIR, REPLACE, REINFORCE, MODERNIZE OR EXPAND THE
STATE'S ELECTRIC TRANSMISSION GRID  TO  ENSURE  THE  SAFE  AND  RELIABLE
PROVISION  OF ELECTRIC SERVICE TO THE SERVICE AREA AND THE STATE'S RESI-
DENTS NOW AND INTO THE FUTURE;
  2. EXERCISE ALL OF THE  RIGHTS  AND  PRIVILEGES  ASSOCIATED  WITH  ANY
OWNERSHIP INTEREST IN OR ORGANIZER OF THE SUBSIDIARY COMPANY;
  3.  ISSUE  ITS  BONDS,  NOTES  AND  OTHER  EVIDENCE OF INDEBTEDNESS TO
FINANCE THE OPERATIONS OF THE SUBSIDIARY COMPANY, INCLUDING THE  SUBSID-
IARY COMPANY'S PARTICIPATION IN AND OBLIGATIONS UNDERTAKEN IN CONNECTION
WITH A TRANSCO COMPANY;
  4.  LEND,  OR  OTHERWISE  TRANSFER  MONIES  TO THE SUBSIDIARY COMPANY,
INCLUDING THE PROCEEDS OF THE AUTHORITY'S BONDS, NOTES,  OTHER  EVIDENCE
OF INDEBTEDNESS AND OTHER AUTHORITY FUNDS;
  5.  RECEIVE  MONIES FROM THE SUBSIDIARY COMPANY, INCLUDING MONIES THAT
RESULT FROM THE OPERATION OF THE TRANSCO COMPANY;
  6.  AS DEEMED FEASIBLE AND ADVISABLE BY THE TRUSTEES, TRANSFER TO  THE
SUBSIDIARY COMPANY TRANSMISSION ASSETS THAT HAVE BEEN OR ARE EXPECTED TO
BE USED IN PROJECTS UNDERTAKEN BY THE TRANSCO COMPANY FOR SUCH CONSIDER-
ATION  AND  ON  SUCH  OTHER  TERMS AND CONDITIONS AS THE AUTHORITY SHALL
NEGOTIATE;
  7. RECEIVE FROM THE SUBSIDIARY COMPANY  OR  THE  TRANSCO  COMPANY  ANY
PERSONAL OR REAL PROPERTY;
  8.  ENTER  INTO GUARANTEE AGREEMENTS IN CONNECTION WITH THE SUBSIDIARY
COMPANY'S PARTICIPATION IN THE TRANSCO COMPANY;
  9. ENTER INTO CONTRACTS AND OTHER FORMS OF AGREEMENT WITH THE  TRANSCO
COMPANY,  THE SUBSIDIARY COMPANY AND OTHER MEMBERS OF THE TRANSCO COMPA-
NY;
  10. PLEDGE OR ASSIGN ALL OR ANY PORTION OF ANY INTEREST IN  A  TRANSCO
COMPANY;
  11. TRANSFER AND RECEIVE ALL OR ANY PORTION OF ANY INTEREST IN A TRAN-
SCO COMPANY;

A. 1672                             7

  12.  SELL,  PURCHASE,  OR OTHERWISE TRANSFER ALL OR ANY PORTION OF ANY
INTEREST IN A TRANSCO COMPANY  ON  SUCH  TERMS  AND  CONDITIONS  AS  THE
AUTHORITY DEEMS APPROPRIATE;
  13.  ASSIGN  ONE  OR  MORE  EMPLOYEES TO PROVIDE SERVICES TO A TRANSCO
COMPANY FOR A SPECIFIED PERIOD OF TIME, PROVIDED THAT ANY SUCH  EMPLOYEE
SHALL CONTINUE TO BE AN EMPLOYEE OF THE AUTHORITY; AND
  14.  DISSOLVE  OR  TERMINATE THE SUBSIDIARY COMPANY IN ACCORDANCE WITH
APPLICABLE LAW.
  (IV) NOTWITHSTANDING THE PROVISIONS OF  ANY  OTHER  LAW,  NO  TRUSTEE,
OFFICER OR EMPLOYEE OF THE STATE, OR OF ANY STATE AGENCY, PUBLIC AUTHOR-
ITY  OR PUBLIC BENEFIT CORPORATION, SHALL BE DEEMED TO HAVE FORFEITED OR
SHALL FORFEIT SUCH PERSON'S OFFICE OR EMPLOYMENT OR ANY BENEFITS ASSOCI-
ATED THEREWITH BY REASON OF SUCH PERSON'S ACCEPTANCE OF  MEMBERSHIP  ON,
OR  SUCH  PERSON  BEING  AN  OFFICER, EMPLOYEE OR AGENT OF, A SUBSIDIARY
COMPANY, OR BY REASON OF  SUCH  PERSON'S  PROVISION  OF  SERVICES  TO  A
SUBSIDIARY COMPANY.
  (V)  THE  PROVISIONS  OF  SECTION ONE THOUSAND TWENTY-CC OF THIS TITLE
SHALL BE INAPPLICABLE TO ANY TRANSCO MASTER AGREEMENT, TRANSCO ANCILLARY
AGREEMENT, OR TRANSCO PROJECT AGREEMENT.
  (VI) THE PROVISIONS OF SECTION TWENTY-EIGHT HUNDRED SEVENTY-NINE-A  OF
THIS  CHAPTER  SHALL  BE  APPLICABLE  TO ANY TRANSCO MASTER AGREEMENT TO
WHICH THE AUTHORITY OR SUBSIDIARY COMPANY IS A PARTY, BUT SHALL BE INAP-
PLICABLE TO ANY TRANSCO ANCILLARY AGREEMENT OR TRANSCO PROJECT AGREEMENT
THAT OTHERWISE SATISFIES THE REQUIREMENTS OF PARAGRAPH  (A)  OR  (B)  OF
SUBDIVISION ONE OF SUCH SECTION PROVIDED THAT 1. A FINAL OR SUBSTANTIAL-
LY  NEGOTIATED  FORM  OF  SUCH  TRANSCO  ANCILLARY  AGREEMENT OR TRANSCO
PROJECT AGREEMENT, AS THE CASE MAY BE, IS ANNEXED TO  A  TRANSCO  MASTER
AGREEMENT  THAT  HAS BECOME VALID AND ENFORCEABLE IN ACCORDANCE WITH THE
PROVISIONS OF SECTION TWENTY-EIGHT HUNDRED SEVENTY-NINE-A OF THIS  CHAP-
TER,  AND  2.  IN  THE  CASE  OF  A TRANSCO PROJECT AGREEMENT, THE FINAL
EXECUTED FORM OF SUCH TRANSCO PROJECT AGREEMENT IS LIMITED TO A  TRANSCO
PROJECT THAT WAS IDENTIFIED IN SUCH TRANSCO MASTER AGREEMENT.
  (VII)  THE  PROVISIONS OF TITLE FIVE-A OF ARTICLE NINE OF THIS CHAPTER
SHALL BE INAPPLICABLE TO ANY DISPOSAL OF PROPERTY BY  THE  AUTHORITY  OR
SUBSIDIARY  COMPANY THAT 1. IS OTHERWISE AUTHORIZED BY THIS TITLE, OR 2.
IS MADE IN ACCORDANCE WITH A TRANSCO MASTER AGREEMENT  THAT  HAS  BECOME
VALID AND ENFORCEABLE IN ACCORDANCE WITH THE PROVISIONS OF SECTION TWEN-
TY-EIGHT HUNDRED SEVENTY-NINE-A OF THIS CHAPTER.
  (VIII)  THE  PROVISIONS OF PARAGRAPH (D) OF SUBDIVISION ONE OF SECTION
ONE THOUSAND TWENTY-S OF THIS TITLE AND SECTION THREE-B  OF  THE  PUBLIC
SERVICE  LAW  SHALL BE INAPPLICABLE TO THE RATES, SERVICES AND PRACTICES
RELATED TO THE TRANSCO MASTER AGREEMENT AND ANY  ACTIONS  UNDERTAKEN  BY
THE  AUTHORITY  OR SUBSIDIARY CORPORATION IN ACCORDANCE WITH THE TRANSCO
MASTER AGREEMENT.
  (IX) NO ACTS OR ACTIVITIES TAKEN  OR  PROPOSED  TO  BE  TAKEN  BY  THE
AUTHORITY  OR  A  SUBSIDIARY  COMPANY PURSUANT TO THE PROVISIONS OF THIS
SUBDIVISION, INCLUDING THE EXECUTION OF A TRANSCO MASTER AGREEMENT,  AND
THE  ISSUANCE  OF BONDS, NOTES, OR OTHER OBLIGATIONS, SHALL BE DEEMED TO
BE "ACTIONS" FOR THE PURPOSES OR WITHIN THE MEANING OF ARTICLE EIGHT  OF
THE ENVIRONMENTAL CONSERVATION LAW.
  (X) NOTWITHSTANDING THE PROVISIONS OF ANY OTHER LAW, THE AUTHORITY AND
THE  SUBSIDIARY  COMPANY  MAY ONLY PARTICIPATE IN A TRANSCO COMPANY THAT
CONSTRUCTS, REPAIRS, REPLACES, REINFORCES, MODERNIZES OR EXPANDS  TRANS-
MISSION  ASSETS,  AND  MAY  NOT  PARTICIPATE  IN  A TRANSCO COMPANY THAT
FINANCES OR CONSTRUCTS NEW ELECTRIC GENERATING FACILITIES.

A. 1672                             8

  S 7. Severability clause. If any clause, sentence, paragraph, subdivi-
sion, section or part of this act shall be  adjudged  by  any  court  of
competent  jurisdiction  to  be invalid, such judgment shall not affect,
impair, or invalidate the remainder thereof, but shall  be  confined  in
its  operation  to the clause, sentence, paragraph, subdivision, section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the legislature that this act would  have  been  enacted  even  if  such
invalid provisions had not been included therewith.
  S 8. This act shall take effect immediately.