Relates to the power authority of the state of New York and the public authorities control board; prohibits the power authority from undertaking any project or sale of any asset exceeding one million dollars without the approval from the public authorities control board; provides for factors for such determination; creates a temporary special commission on the restructuring of the power authority of the state of New York; directs the New York state energy research and development authority to conduct studies related to the state's electric transmission system, the state's natural gas infrastructure and a comprehensive energy plan for the down state region of the state.

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S1056B-2011 Actions

• Jan 5, 2012: PRINT NUMBER 1056B
• Jan 5, 2012: PRINT NUMBER 1056A
• Jan 5, 2012: AMEND AND RECOMMIT TO ENERGY AND TELECOMMUNICATIONS
• Jan 4, 2012: REFERRED TO ENERGY AND TELECOMMUNICATIONS
• Feb 22, 2011: PRINT NUMBER 1056A
• Feb 22, 2011: AMEND (T) AND RECOMMIT TO ENERGY AND TELECOMMUNICATIONS
• Jan 5, 2011: REFERRED TO ENERGY AND TELECOMMUNICATIONS

S1056B-2011 Memo

BILL NUMBER:S1056B

TITLE OF BILL:
An act
to amend the public authorities law, in relation to the power authority
of the state of New York and the public authorities control board,
and
in relation to directing the New York state energy research and
development authority to conduct a study
related to the state's natural gas infrastructure

PURPOSE OR GENERAL IDEA OF BILL:
To make the Power Authority of the state of New York (PASNY) subject
to oversight by the public Authorities Control Board. And to
establish a commission to study the future role of PASNY in a
deregulated electric industry. The bill also directs the New York
state energy research and development authority to conduct studies
related to the state's electric transmission system, the state's
natural gas infrastructure and a comprehensive energy plan for the
downstate region of the state.

SUMMARY OF SPECIFIC PROVISIONS:
This bill amends section 51 and 1005 of the public authorities law and
adds three new sections 1855-a.

JUSTIFICATION:
The electricity industry has undergone tremendous changes and
currently exposes utility customers to greatly increased risks
associated with price volatility without significant corresponding
benefits. PASNY was directed to build 11 single cycle generators in
and around the Metropolitan New York City region. There was very
limited public process involved in siting these turbines, many of
which were sited in low-income neighborhoods.

Placing PASNY under the public Authorities Control Board provides
oversight and establishing a commission to study the future role of
PASNY will help refocus PASNY's mission in a deregulated electricity
marketplace. It is necessary to examine the problems surrounding the
state's energy infrastructure, including transmission, and natural
gas transportation, distribution and indigenous resources.

It is also necessary to study downstate, as it has experienced the
greatest price spikes due to load pockets and market forces, which
has also affected the State's overall whole electricity market.

PRIOR LEGISLATIVE HISTORY:

2009-10:  S.1781 Referred to Energy and Telecommunications
2007-08:  S.1985 Referred to Energy and Telecommunications
2006-07:  S.1350 Referred to Energy and Telecommunications

FISCAL IMPLICATIONS:
To be determined.

EFFECTIVE DATE:
Immediately.

S1056B-2011 Text

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

                                   1056--B

                         2011-2012 Regular Sessions

                              I N  SENATE

                                 (PREFILED)

                               January 5, 2011
                                 ___________

  Introduced  by  Sens.  PARKER,  DIAZ,  DUANE, HASSELL-THOMPSON, KRUEGER,
    PERKINS, SAMPSON, SERRANO, STAVISKY -- read twice and ordered printed,
    and when printed to be committed to the Committee on Energy and  Tele-
    communications   --   committee   discharged,  bill  amended,  ordered
    reprinted as amended and recommitted to said committee --  recommitted
    to  the  Committee on Energy and Telecommunications in accordance with
    Senate Rule 6, sec. 8 -- committee discharged, bill  amended,  ordered
    reprinted as amended and recommitted to said committee

  AN  ACT  to  amend  the public authorities law, in relation to the power
    authority of the state of New York and the public authorities  control
    board, and in relation to directing the New York state energy research
    and  development  authority  to conduct a study related to the state's
    natural gas infrastructure

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


    Section  1.  Subdivision 1 of section 51 of the public authorities law
  is amended by adding a new paragraph o to read as follows:

    O. POWER AUTHORITY OF THE STATE OF NEW YORK
    S 2. Section 1005 of the public authorities law is amended by adding a
  new subdivision 11-a to read as follows:

    11-A. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY,  THE
  AUTHORITY SHALL NOT UNDERTAKE ANY PROJECT OR SALE OF ANY ASSET EXCEEDING
  ONE MILLION DOLLARS IN VALUE WITHOUT THE APPROVAL OF THE PUBLIC AUTHORI-
  TIES  CONTROL  BOARD  CREATED PURSUANT TO ARTICLE ONE-A OF THIS CHAPTER.
  EACH APPLICATION TO THE PUBLIC AUTHORITIES CONTROL BOARD SHALL CONTAIN A
  PROJECT DESCRIPTION OR DESCRIPTION OF SALE AND AN EXPLANATION OF WHY THE
  PROJECT OR SALE MEETS THE STANDARDS FOR PROJECT APPROVAL OR APPROVAL  OF
  SALE SET FORTH IN THIS SUBDIVISION. THE PUBLIC AUTHORITIES CONTROL BOARD
  SHALL  ONLY APPROVE A PROJECT OR SALE PROPOSED BY THE AUTHORITY UPON ITS
  DETERMINATION THAT:


   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD02114-03-2

 S. 1056--B                          2

    A. THE PROJECT OR SALE IS FINANCIALLY  FEASIBLE  AS  THE  STANDARD  AS
  DEFINED IN ARTICLE ONE-A OF THIS CHAPTER;
    B.  THE  PROJECT  OR  SALE IS ANTICIPATED TO RESULT GENERALLY IN LOWER
  UTILITY RATES IN THE STATE; AND
    C. THE PROJECT OR SALE WILL NOT MATERIALLY  ADVERSELY  AFFECT  OVERALL
  REAL  PROPERTY  TAXES  OR UTILITY RATES IN ANY AREAS OF THE STATE OF NEW
  YORK.
    S 3. Temporary special commission on restructuring the power authority
  of the state of New York. 1. There shall be a temporary special  commis-
  sion  on  restructuring  the  power  authority of the state of New York,
  which shall possess the powers and duties as specified in this  section,
  and  also  all  powers  necessary or proper to enable such commission to
  carry out the purposes  for  which  it  is  established.  The  temporary
  special  commission  shall  consist of eight members as follows:  two of
  whom shall be appointed by the governor, two of whom shall be  appointed
  by the temporary president of the senate, two of whom shall be appointed
  by  the  speaker  of the assembly, one of whom shall be appointed by the
  minority leader of the senate and one of whom shall be appointed by  the
  minority leader of the assembly. Each member shall serve at the pleasure
  of  the  respective appointing person.   One of the members appointed by
  the governor shall be selected by the governor to serve as chair of  the
  temporary  special commission. The temporary special commission shall be
  subject to articles 6 and 7 of the public officers law.  Each member  of
  the  temporary  special commission shall be subject to the provisions of
  article 4 of the public officers law.
    2. The temporary special commission on restructuring the power author-
  ity of the state of New York shall have the power and duty to:

    (a) conduct hearings, discussions, and negotiations among  members  of
  the public, affected businesses, and representatives of government; and
    (b)  issue  a  final  report to the governor and legislature detailing
  recommendations on restructuring the power authority of the state of New
  York, including, but not limited to, the following issues: the  divesti-
  ture  of  such  authority's  non-hydroelectric  generation  assets; such
  authority's role as a transmission provider; such  authority's  role  in
  the power for jobs and economic development power programs; such author-
  ity's  energy  efficiency  programs; such authority's relationship with,
  and obligation to, host communities,  including,  but  not  limited  to,
  payments-in-lieu  of taxes to local municipalities and school districts,
  economic development investments, and  community  revitalization  initi-
  atives;  and such authority's role in a deregulated energy market. On or
  before September 1, 2013 such commission shall transmit such  report  to
  the  governor,  the  speaker of the assembly, the minority leader of the
  assembly, the temporary president of the senate, the minority leader  of
  the senate, the chairman of the assembly energy committee and the chair-
  man of the senate energy and telecommunications committee.
    S  4.  The  public  authorities law is amended by adding a new section
  1855-a to read as follows:

    S 1855-A. NATURAL GAS SUPPLY AND INFRASTRUCTURE STUDY. 1. THE AUTHORI-
  TY SHALL UNDERTAKE A STUDY OF ISSUES, INCLUDING BUT NOT LIMITED  TO  THE
  SUPPLY,  TRANSPORTATION,  PIPELINE CAPACITY, DISTRIBUTION AND STORAGE OF
  NATURAL GAS IN NEW YORK STATE. THE AUTHORITY MAY CONTRACT WITH AN  INDE-
  PENDENT  AND  COMPETITIVELY SELECTED CONTRACTOR TO UNDERTAKE SUCH STUDY.
  THE AUTHORITY SHALL PREPARE A REPORT ON  ITS  FINDINGS  AND  LEGISLATIVE
  RECOMMENDATIONS.  ON  OR  BEFORE SEPTEMBER FIRST, TWO THOUSAND THIRTEEN,
  THE AUTHORITY SHALL TRANSMIT SUCH REPORT TO THE GOVERNOR, THE  TEMPORARY
  PRESIDENT  OF  THE  SENATE, THE SPEAKER OF THE ASSEMBLY, THE CHAIRMAN OF

 S. 1056--B                          3

  THE SENATE ENERGY AND TELECOMMUNICATIONS COMMITTEE AND THE  CHAIRMAN  OF
  THE ASSEMBLY ENERGY COMMITTEE.
    2. THE STUDY SHALL INCLUDE, AT A MINIMUM, AN ASSESSMENT OF EACH OF THE
  FOLLOWING:

    (A)  CURRENT  UTILITY  PRACTICES IN PROCURING THE COMMODITY OF NATURAL
  GAS AND A COMPARISON, BY UTILITY TERRITORY IN THE STATE, OF  IMPACTS  ON
  RATES  FOR  END-USE CUSTOMERS; (B) THE CURRENT AND PROJECTED ADEQUACY OF
  THE  NATURAL  GAS  INFRASTRUCTURE,  INCLUDING  TRANSPORTATION,  PIPELINE
  CAPACITY,  DISTRIBUTION  AND  STORAGE IN NEW YORK STATE; (C) ADEQUACY OF
  TRANSPORTATION AND DISTRIBUTION IN DENSELY POPULATED AREAS OF THE  STATE
  AND  IN  RURAL  AREAS  OF  THE  STATE; (D) INVESTMENT IN INFRASTRUCTURE,
  INCLUDING CAPITAL IMPROVEMENTS, UTILIZATION OF  NEW  TECHNOLOGY,  EXPAN-
  SIONS,  AND MAINTENANCE; (E) THE ADEQUACY OF TRANSPORTATION AND DISTRIB-
  UTION INFRASTRUCTURE IN AREAS WHERE NATURAL GAS FUELED ELECTRIC GENERAT-
  ING PLANTS ARE PROPOSED; (F) INDIGENOUS SOURCES OF NATURAL  GAS  IN  THE
  STATE;  (G)  WORKFORCE  ADEQUACY,  INCLUDING THE AVAILABILITY OF SKILLED
  LABORERS  AND  THE  ADEQUACY  OF  SKILLS  TRAINING  AND   APPRENTICESHIP
  PROGRAMS;  AND  (H)  THE  POTENTIAL IMPACT OF DISTRIBUTED GENERATION AND
  COMBINED HEAT AND  POWER  SYSTEMS  ON  NATURAL  GAS  TRANSPORTATION  AND
  DISTRIBUTION SYSTEM ADEQUACY.
    S 5. This act shall take effect immediately.