Creates a bulk electricity purchasing program in the office of general services to provide lower cost electricity to participating municipalities.
Ayes (35): DeFrancisco, Bonacic, Farley, Flanagan, Fuschillo, Golden, Griffo, Grisanti, Lanza, Larkin, LaValle, Little, Marcellino, Nozzolio, O'Mara, Ranzenhofer, Robach, Savino, Seward, Young, Krueger, Diaz, Dilan, Rivera, Gianaris, Breslin, Montgomery, Parker, Peralta, Perkins, Stavisky, Squadron, Kennedy, Espaillat, Sampson
Excused (1): Hannon
TITLE OF BILL: An act to amend the executive law, in relation to the bulk electricity purchasing program
PURPOSE: The bulk purchasing would create additional opportunities for overall energy cost-savings. OGS currently uses bulk purchasing of gasoline and heating fuel to provide cost savings for the State. localities and schools. This bill would allow for the bulk purchasing of electricity.
SUMMARY OF PROVISIONS: Adds a new section 204 to the Executive Law to create the Bulk Electricity Purchasing Program to be administered by the Commissioner of the Office of General Services (OGS) working in cooperation with governmental and non-governmental organizations. The bulk fuel purchasing program will be available on a voluntary basis to State agencies, municipalities and school districts.
JUSTIFICATION: According to a survey by the New York State Association of School Business Officials and the New York State Association for Superintendents of School Buildings and Grounds, if energy prices remain at their current levels, many school districts in New York expect to see shortfalls in their budgets. Giving, OGS the authority to bulk purchase electricity would create additional opportunities for overall energy cost-savings for school districts as well as State and its agencies, and localities.
LEGISLATIVE HISTORY: 2012- S.4747
FISCAL IMPLICATIONS: Subject to appropriation
EFFECTIVE DATE: This act shall take effect on the ninetieth day after it shall have become a law.
STATE OF NEW YORK ________________________________________________________________________ 3640 2013-2014 Regular Sessions IN SENATE February 7, 2013 ___________Introduced by Sens. O'MARA, MAZIARZ, RANZENHOFER -- read twice and ordered printed, and when printed to be committed to the Committee on Energy and Telecommunications AN ACT to amend the executive law, in relation to the bulk electricity purchasing program THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The executive law is amended by adding a new section 204 to read as follows: S 204. BULK ELECTRICITY PURCHASING PROGRAM. 1. THE OFFICE OF GENERAL SERVICES, ACTING IN COOPERATION WITH SUCH OTHER GOVERNMENTAL AND NON-GOVERNMENTAL AGENCIES AS IT MAY DEEM NECESSARY, SHALL ESTABLISH AND IMPLEMENT EITHER A SINGLE STATEWIDE BULK ELECTRICITY PURCHASING PROGRAM OR, UTILIZING SUCH GOVERNMENTAL OR NON-GOVERNMENTAL AGENCIES AS MAY BE NECESSARY, ONE OR MORE REGIONAL BULK FUEL PURCHASING PROGRAMS AS MAY BE NEEDED. SUCH PROGRAM SHALL: A. BE AVAILABLE ON A VOLUNTARY BASIS TO MUNICIPALITIES AND SCHOOL DISTRICTS; B. PROVIDE FOR THE PURCHASE BY MAY FIRST OF EACH YEAR, AT A BULK RATE, OF SUFFICIENT QUANTITIES OF ELECTRICITY FOR THE AGENCIES AND DEPARTMENTS OF THE STATE AND FOR ALL PARTICIPATING MUNICIPALITIES AND SCHOOL DISTRICTS IN THE AMOUNT EXPECTED TO BE NECESSARY FOR THE COVERED PERIOD; C. PROVIDE FOR MAINTENANCE RELATED SERVICE, BY THE SUPPLIER OR DISTRIBUTOR OF THE ELECTRICITY; D. PROVIDE THAT THE SUPPLIER OR DISTRIBUTOR OF THE ELECTRICITY SHALL DELIVER SAID FUELS TO THE AGENCIES AND DEPARTMENTS OF THE STATE AND TO THE PARTICIPATING MUNICIPALITIES AND SCHOOL DISTRICTS ON A REGULAR SCHE- DULE AS WELL AS ON AN EMERGENCY BASIS. 2. THE OFFICE OF GENERAL SERVICES, IN ESTABLISHING AND IMPLEMENTING A BULK ELECTRICITY PURCHASING PROGRAM, SHALL ENSURE THAT:EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD08541-01-3 S. 3640 2
A. EACH CONTRACT WITH A SUPPLIER OR DISTRIBUTOR, CONSISTENT WITH THE REQUIREMENTS OF FEDERAL AND STATE LAW, RULES AND REGULATIONS, BE ENTERED INTO WITH THE LOWEST RESPONSIBLE BIDDER, PRICE AND OTHER FACTORS CONSID- ERED. OTHER FACTORS SHALL INCLUDE, BUT NOT BE LIMITED TO, RELIABILITY, FLEXIBILITY OF SERVICE, HISTORY OF SERVICE IN THE AREA, HISTORIC LEVELS OF DEPENDENCY ON SOURCES OF SUPPLY, AND RELIABILITY AND MIX OF CURRENT SOURCES OF SUPPLY; B. EACH CONTRACT WITH A SUPPLIER OR DISTRIBUTOR SHALL INCLUDE, AT NO ADDITIONAL COST, PROVISIONS FOR SERVICE AND MAINTENANCE; C. EACH CONTRACT WITH A SUPPLIER OR DISTRIBUTOR SHALL PROVIDE FOR THE BULK PURCHASE AND DELIVERY BY THE OFFICE WHICH MAY UTILIZE ITS CENTRAL- IZED CONTRACTS FOR BULK ELECTRICITY IN ACCORDANCE WITH SECTION ONE HUNDRED SIXTY-THREE OF THE STATE FINANCE LAW; D. EACH CONTRACT WITH A SUPPLIER OR DISTRIBUTOR OF ELECTRICITY SHALL PROVIDE THAT ADDITIONAL AMOUNTS OF ELECTRICITY AT THE BULK RATE SHALL BE AVAILABLE TO THE STATE AND TO ALL PARTICIPATING MUNICIPALITIES AND SCHOOL DISTRICTS IN SUFFICIENT QUANTITIES IN THE EVENT OF SEVERE EMER- GENCIES. 3. THE COMMISSIONER OF GENERAL SERVICES, UPON APPLICATION BY THE OFFICE OF GENERAL SERVICES, MAY GRANT, FOR A YEAR, A WAIVER OF IMPLEMEN- TATION OF SUBDIVISION TWO OF THIS SECTION. SUCH APPLICATION SHALL BE GRANTED UPON A SUFFICIENT DEMONSTRATION BY THE OFFICE OF GENERAL SERVICES THAT, FOR A SPECIFIC GEOGRAPHIC AREA: A. NO BIDS WERE RECEIVED FROM A DISTRIBUTOR OR SUPPLIER OF ELECTRIC- ITY; B. NO BIDS WERE RECEIVED FROM A DISTRIBUTOR OR SUPPLIER OF ELECTRICITY AT A BULK RATE; C. INSUFFICIENT NUMBERS OF MUNICIPALITIES AND/OR SCHOOL DISTRICTS HAD AGREED TO PARTICIPATE IN A BULK PURCHASING PROGRAM, AFTER HAVING BEEN PROVIDED WITH NOTICE OF POTENTIAL SAVINGS AND AN OPPORTUNITY TO PARTIC- IPATE; OR D. THE PROGRAM WOULD NOT RESULT IN ELECTRICITY COSTS TO THE STATE AND PARTICIPATING MUNICIPALITIES AND SCHOOL DISTRICTS THAT ARE LESS EXPEN- SIVE THAN ELECTRICITY COSTS OTHERWISE AVAILABLE. THE COMMISSIONER OF GENERAL SERVICES, UPON GRANTING A WAIVER PURSUANT TO THIS PARAGRAPH, SHALL SPECIFY, IN WRITING: (I) THE GROUND OR GROUNDS FOR THE GRANTING OF THE WAIVER AND (II) THE STEPS THAT SHALL BE TAKEN BY THE OFFICE OF GENERAL SERVICES TO MINIMIZE THE NECESSITY OF A FUTURE APPLICATION FOR A WAIVER. 4. WHERE FEASIBLE AND APPROPRIATE, EACH BULK ELECTRICITY PURCHASING PROGRAM SHALL: A. WHERE BIDDING DEMONSTRATES ITS PRACTICABILITY, INCLUDE AT LEAST TWO POTENTIAL SUPPLIERS; AND B. PROVIDE FOR THE BULK PURCHASE, STORAGE AND DELIVERY OF THE ELEC- TRICITY BY THE OFFICE OF GENERAL SERVICES. 5. THE COMMISSIONER OF GENERAL SERVICES IS HEREBY AUTHORIZED AND DIRECTED TO ADOPT RULES AND REGULATIONS TO IMPLEMENT THE PROVISIONS OF THIS SECTION WITHIN SIXTY DAYS OF THE EFFECTIVE DATE OF THIS SECTION. S 2. This act shall take effect on the ninetieth day after it shall have become a law.