Expands the products which may be purchased for public use by including renewable energy resources; increases the cost premium percentage for renewable energy generated in New York.
TITLE OF BILL: An act to amend the general municipal law, in relation to expanding the products which may be purchased for public use
PURPOSE: This bill would provide that certain contracts which purchase products for public use and include renewable energy resources shall not be subject to provisions of law requiring the lowest bid.
SUMMARY OF PROVISIONS:
Section 1 of this bill would include renewable energy resources as a product which may be purchased for public use.. The bill would allow municipal officials to purchase renewable energy resources that meet contract specifications and that are reasonably competitive. The bill would define renewable energy resources as having the same meaning as defined in subdivision twelve of section 1-103 of the Energy Law.
Section 2 of this bill would define "reasonably competitive' prices for renewable energy resources as ten percent above the cost of a comparable product. This amount is the same percentage used in defining "reasonably competitive" for recycled products.
EXISTING LAW: Present law requires public product contracts to be given to the lowest responsible bidder. Because of this requirement, contracts for electricity from renewable energy resources might not be considered, due to the fact that some renewable energy resources may cost more than other sources of electricity.
The Energy Law has included a definition of renewable energy resources since 1976.
JUSTIFICATION: New York State's energy policy is to obtain and maintain safe, reliable, and diverse energy supplies, accelerate the development and use of renewable energy resources, and increase its energy independence, in order to promote the State's economic growth, to maintain the security of its energy supplies, and to protect its environmental values. New York's existing facilities are powered by a mix of fuels. As an extension of that fuel diversity policy, the State has committed to increasing renewable energy supplies.
Among other provisions, Executive order 111 encourages localities to increase their purchases of renewable energy resources. Local governments are considering purchasing renewable energy resources, and some have passed local laws and resolutions to allow the increase of those purchases.
Under the General Municipal Law, products which are purchased for public use must be bought from the lowest responsible bidder. However, under Section 104-a, recycled products can be purchased for public use, even if they are not the lowest priced product. Renewable energy resources
currently are not included under provisions of Section 104-a. However, the aim of this original law was to not discourage purchasing practices which advance the goals of state policies, such as increasing the use of recycled products or renewable energy resources.
Among other provisions, Article 9 of the Energy Law allows municipalities to enter into energy performance contracts for purposes such as developing alternate sources of energy. In lieu of any other competitive procurement or acquisition process that may apply pursuant to any other provision of law, a municipality may procure an energy performance contractor by issuing and advertising a written request for proposals in accordance with procurement or internal control policies, procedures, or guidelines that the municipality has adopted. Section 103 of the General Municipal Law does not apply to an energy performance contract for which a written request for proposals is issued.
This bill also would exempt reasonably competitive purchases of renewable energy resources by municipal officials from the requirements of Section 103 of the General Municipal Law.
LEGISLATIVE HISTORY: 2005-06: A.11875 - Assembly Local Governments/S.7199 - Passed Senate 2007-08: A.2965 - Assembly Local Governments/S.7341 - Passed Senate 2009-10: A.7936/S.1642
FISCAL IMPLICATIONS: None.
EFFECTIVE DATE: This act shall take effect January 1st next succeeding the date of enactment, with provisions.
STATE OF NEW YORK ________________________________________________________________________ 2161 2013-2014 Regular Sessions IN SENATE January 14, 2013 ___________Introduced by Sen. VALESKY -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government AN ACT to amend the general municipal law, in relation to expanding the products which may be purchased for public use THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 104-a of the general municipal law, as amended by chapter 468 of the laws of 1994, is amended to read as follows: S 104-a. Purchasing of products for public use. 1. Notwithstanding the provisions of section one hundred three of this
[chapter]ARTICLE, when purchasing products the officer, board or agency of any political subdivision or of any district therein charged with the awarding of public contracts may, wherever RENEWABLE ENERGY RESOURCES OR recycled products meet contract specifications and the price of such products is reasonably competitive, purchase such products. For the purpose of this section [and until July first, nineteen hundred ninety-six, "recycled product" shall mean any product which has been manufactured from second- ary materials, as defined in subdivision one of section two hundred sixty-one of the economic development law, and meets secondary material content requirements adopted by the office of general services under subdivision one of section one hundred seventy-seven of the state finance law for products available to the political subdivision or district under state contract or, if no such contract for such product is available, any product which meets the secondary material content requirements adopted by the political subdivision or district thereof with respect to a specific commodity procurement by such entity. On and after July first, nineteen hundred ninety-six,]: (A) "recycled product" shall mean [, for the purposes of this section,]any product which is manufactured from secondary materials, as defined in subdivision one of section two hundred sixty-one of the economic development law, and which meets the requirements of subdivision two ofEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD04737-01-3 S. 2161 2
section 27-0717 of the environmental conservation law and regulations promulgated pursuant thereto
[. For the purpose of this section,]; (B) "RENEWABLE ENERGY RESOURCES" SHALL HAVE THE SAME MEANING AS SUCH TERM IS DEFINED IN SUBDIVISION TWELVE OF SECTION 1-103 OF THE ENERGY LAW; (C) "reasonably competitive" shall mean: (I) that the cost of the recycled product does not exceed a cost premium of ten percent above the cost of a comparable product that is not a recycled product or, if at least fifty percent of the secondary materials utilized in the manufacture of that product are generated from the waste stream in New York state, the cost of the recycled product does not exceed a cost premium of fifteen percent above the cost of a comparable product that is not a recycled product; OR (II) THAT THE COST OF THE RENEWABLE ENERGY RESOURCE DOES NOT EXCEED A COST PREMIUM OF TEN PERCENT ABOVE THE COST OF A COMPARABLE PRODUCT THAT IS NOT A RENEWABLE ENERGY RESOURCE. 2. Whenever such officer, board or agency shall purchase or cause the purchase of printing on recycled paper pursuant to this section, he or she shall require the printed material to contain the official state recycling emblem established pursuant to subdivision two of section 27-0717 of the environmental conservation law and regulations promulgat- ed pursuant thereto if such paper has been approved by the department of environmental conservation as satisfying the requirements of such stat- ute and regulations, or, if such paper has not been so approved, require the printed material to include a printed statement which indicates the percentages of pre-consumer and post-consumer recycled material content of such paper. S 2. This act shall take effect on the first of January next succeed- ing the date on which it shall have become a law; provided, however, that effective immediately, the addition, amendment and/or repeal of any rule or regulation necessary for the implementation of this act on its effective date are authorized and directed to be made and completed on or before such effective date.