Bill S1056B-2011

Relates to the power authority of the state of New York and the public authorities control board

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.

Details

Actions

  • Jan 5, 2012: PRINT NUMBER 1056B
  • 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

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.


Text

STATE OF NEW YORK ________________________________________________________________________ 1056--B 2011-2012 Regular Sessions IN 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:
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
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.

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