S T A T E   O F   N E W   Y O R K
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                                 4211--A

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                             March 11, 2015
                               ___________

Introduced  by  Sens. GRIFFO, RITCHIE -- read twice and ordered printed,
  and when printed to be committed to the Committee on Energy and  Tele-
  communications  -- recommitted to the Committee on Energy and Telecom-
  munications 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 service law, the public buildings law, the
  real property tax law and the public authorities law, in  relation  to
  expansion of natural gas service

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

  Section 1.  Legislative  intent.  The  legislature  hereby  finds  and
declares that the extension of natural gas distribution lines within the
state  has  multiple  benefits  to New Yorkers, including a reduction in
emissions with the resultant health benefits, increased economic  activ-
ity  with  the  creation of jobs through improved energy infrastructure,
energy cost savings to consumers, and improved energy efficiency.
  Natural gas is the cleanest burning fossil fuel.  It  has  a  positive
impact  on  the  environment by cutting emissions of particulate matter.
These emissions have been  linked  to  heart  and  lung  conditions  and
contribute to asthma rates, particularly in urban areas.
  Natural  gas  prices  are  at a low point and will result in increased
disposable income for consumers and improved operational efficiency  for
business.  Extending  the  state's natural gas distribution line infras-
tructure will create a positive business environment  for  manufacturers
and  other  businesses that are looking to stabilize their energy costs.
Natural gas distribution line extensions will spur economic  development
in the business sector and create jobs.
  This  legislation  will  have  the  effect  of  protecting the state's
natural resources, including protecting its  atmosphere,  while  at  the
same time stimulating the development of new jobs and the economy.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02116-03-6
              

S. 4211--A                          2

  S  2.  The public service law is amended by adding a new section 28 to
read as follows:
  S  28.  EXPANSION PERMIT APPLICATIONS. ANY GAS CORPORATION OR COMBINA-
TION GAS AND ELECTRIC CORPORATION APPLYING  FOR  PERMITS  IN  CONNECTION
WITH  THE  EXPANSION  OF  NATURAL  GAS  DISTRIBUTION SERVICE THROUGH THE
EXTENSION OF EXISTING NATURAL GAS DISTRIBUTION LINES MAY CONFER WITH THE
COMMISSION TO OBTAIN ASSISTANCE  IN  FACILITATING  CONTACTS  WITH  STATE
AGENCIES  AND  LOCAL  GOVERNMENTS  FOR  PROCESSING  AND REVIEWING PERMIT
APPLICATIONS TO ACHIEVE THE PROMPT AND EFFICIENT PROCESSING  AND  REVIEW
OF APPLICATIONS. THE COMMISSION MAY ACT AS LEAD AGENCY PURSUANT TO ARTI-
CLE EIGHT OF THE ENVIRONMENTAL CONSERVATION LAW, IN CONNECTION WITH SUCH
PERMIT  APPLICATION BY A GAS CORPORATION OR COMBINATION GAS AND ELECTRIC
CORPORATION FRANCHISED UNDER THIS CHAPTER.  THE DEPARTMENTS OF TRANSPOR-
TATION AND ENVIRONMENTAL  CONSERVATION  SHALL,  TO  THE  MAXIMUM  EXTENT
FEASIBLE,  ESTABLISH  PROCEDURES  TO  EXPEDITE  PERMIT  APPLICATIONS  IN
CONNECTION WITH  THE  EXPANSION  OF  NATURAL  GAS  DISTRIBUTION  SERVICE
THROUGH THE EXTENSION OF EXISTING NATURAL GAS DISTRIBUTION LINES.
  S 3. The public service law is amended by adding a new section 18-d to
read as follows:
  S 18-D. SURCHARGES. NOTWITHSTANDING ANY LAW, RULE, REGULATION OR ORDER
TO  THE  CONTRARY,  THE  COMMISSION SHALL, COMMENCING OCTOBER FIRST, TWO
THOUSAND SIXTEEN, DEDICATE NO LESS THAN FIFTY MILLION DOLLARS  PER  YEAR
FROM  ASSESSMENTS  INTENDED  TO PROVIDE FUNDING TO ADVANCE CLEANER, MORE
RESILIENT, MORE EFFICIENT, LOCALIZED AND MORE AFFORDABLE ENERGY  INFRAS-
TRUCTURE,  AND  TO ENHANCE THE GOALS OF THE STATE ENERGY PLAN, COLLECTED
BY GAS CORPORATIONS AND COMBINATION GAS AND ELECTRIC  CORPORATIONS  FROM
THEIR  GAS  CUSTOMERS.  THESE  FUNDS  MUST  BE  USED  FOR THE SUPPORT OF
CONSTRUCTION OF INFRASTRUCTURE DESIGNED TO EXTEND THE SUPPLY OF  NATURAL
GAS  FROM  EXISTING LARGE CAPACITY INFRASTRUCTURE TO AREAS PRESENTLY NOT
SERVED BY NATURAL GAS INFRASTRUCTURE SUPPLY, INCLUDING BUT  NOT  LIMITED
TO NEW INDUSTRIAL (ESPECIALLY MANUFACTURING), COMMERCIAL, RESIDENTIAL OR
PUBLIC  END-USE  CUSTOMERS  OF  A GAS CORPORATION OR COMBINATION GAS AND
ELECTRIC CORPORATION PROVIDING SERVICE IN NEW YORK STATE WITH  SUCH  NEW
CUSTOMER'S  CONSENT.  THE  COMMISSION  SHALL  ALLOCATE SUCH FUNDS TO GAS
CORPORATIONS AND COMBINATION GAS AND  ELECTRIC  CORPORATIONS  THROUGH  A
STAKEHOLDER  PROCESS  ESTABLISHED  BY  THE  COMMISSION. SUCH STAKEHOLDER
PROCESS SHALL ESTABLISH RULES AND PROCEDURES FOR ALLOCATIONS PURSUANT TO
THIS SECTION CONSISTENT WITH THE PUBLIC POLICY GOALS OF THE STATE.
  S 4. The public buildings law is amended by adding a new  section  144
to read as follows:
  S  144.  CLEAN  NATURAL  GAS  HEAT  IN  PUBLIC BUILDINGS. EACH CAPITAL
PROJECT FOR A PUBLIC BUILDING THAT INCLUDES THE INSTALLATION OR REPLACE-
MENT OF A BOILER FOR HEATING SHALL REQUIRE THE COMMISSIONER  OF  GENERAL
SERVICES  TO UNDERTAKE A STUDY OF ENERGY EFFICIENCY, ENVIRONMENTAL EFFI-
CACY AND COST OF USING NATURAL GAS HEATING. SUCH  STUDY  SHALL  CONSIDER
THE  BENEFITS  TO SURROUNDING COMMUNITIES IN THE EVENT THAT IT IS NECES-
SARY TO EXTEND A MAIN NATURAL GAS DISTRIBUTION PIPELINE IN EXCESS OF ONE
HUNDRED FEET TO OBTAIN SUCH SERVICES.
  S 5. The real property tax law is amended  by  adding  a  new  section
485-s to read as follows:
  S  485-S.    EXTENSION AND EXPANSION OF NATURAL GAS SUPPLY THROUGH THE
CONSTRUCTION OF NATURAL GAS DISTRIBUTION FACILITIES. 1. DEFINITIONS. (A)
FOR PURPOSES OF THIS  SECTION,  "NATURAL  GAS  DISTRIBUTION  FACILITIES"
SHALL  MEAN  ANY  MAIN  LINE,  SERVICE  LINE  AND APPURTENANT FACILITIES
CONSTRUCTED TO EXTEND EXISTING NATURAL GAS DISTRIBUTION LINE INFRASTRUC-

S. 4211--A                          3

TURE TO NEW CUSTOMERS OF A GAS CORPORATION  OR  A  COMBINATION  GAS  AND
ELECTRIC CORPORATION WITH THEIR CONSENT.
  2.  AFTER A PUBLIC HEARING, THE GOVERNING BODY OF A COUNTY, CITY, TOWN
OR VILLAGE MAY ADOPT A LOCAL LAW AND A SCHOOL  DISTRICT,  OTHER  THAN  A
SCHOOL  DISTRICT  SUBJECT TO ARTICLE FIFTY-TWO OF THE EDUCATION LAW, MAY
ADOPT A LOCAL LAW OR RESOLUTION TO GRANT AN EXEMPTION AUTHORIZED  PURSU-
ANT  TO  THIS  SECTION.  A COPY OF SUCH LOCAL LAW OR RESOLUTION SHALL BE
FILED WITH THE COMMISSIONER AND THE TAX ASSESSOR OF SUCH  COUNTY,  CITY,
TOWN  OR  VILLAGE WHO PREPARES THE ASSESSMENT ROLL ON WHICH THE TAXES OF
SUCH COUNTY, CITY, TOWN, VILLAGE OR SCHOOL DISTRICT ARE LEVIED.
  3. SUCH NATURAL GAS DISTRIBUTION FACILITIES SHALL  BE  EXEMPT  TO  THE
EXTENT OF THE INCREASE IN THE ASSESSED VALUE THEREOF ATTRIBUTABLE TO THE
CONSTRUCTION  OF SUCH NATURAL GAS DISTRIBUTION FACILITIES. THE LENGTH OF
SUCH EXEMPTION AND THE PERCENTAGE  OF  ASSESSED  VALUATION  EXEMPT  FROM
TAXATION  SHALL  BE SET FORTH IN SUCH LOCAL LAW OR RESOLUTION, BUT IN NO
EVENT SHALL IT EXCEED TEN YEARS.
  4. SUCH EXEMPTION SHALL BE GRANTED ONLY  UPON  APPLICATION  BY  A  GAS
CORPORATION  OR  COMBINATION  GAS AND ELECTRIC CORPORATION WITH APPROVAL
FROM THE PUBLIC SERVICE CORPORATION FOR CONSTRUCTION OF SUCH NATURAL GAS
DISTRIBUTION FACILITIES.
  S 6. The real property tax law is amended  by  adding  a  new  section
485-t to read as follows:
  S  485-T.  EXTENSION AND EXPANSION OF NATURAL GAS DISTRIBUTION FACILI-
TIES. 1. DEFINITIONS. (A) FOR PURPOSES OF  THIS  SECTION,  "NATURAL  GAS
DISTRIBUTION  FACILITIES"  SHALL  MEAN  ANY  MAIN LINE, SERVICE LINE AND
APPURTENANT  FACILITIES  CONSTRUCTED  TO  EXTEND  EXISTING  NATURAL  GAS
DISTRIBUTION  LINE  INFRASTRUCTURE TO NEW CUSTOMERS OF A GAS CORPORATION
OR A COMBINATION GAS AND ELECTRIC CORPORATION WITH THEIR CONSENT.
  2. (A) WITHIN A CITY HAVING A POPULATION OF ONE MILLION OR MORE, AFTER
A PUBLIC HEARING, THE GOVERNING BODY OF SUCH A CITY MAY  ADOPT  A  LOCAL
LAW  OR  RESOLUTION  TO  GRANT  AN EXEMPTION AUTHORIZED PURSUANT TO THIS
SECTION. A COPY OF SUCH LOCAL LAW OR RESOLUTION SHALL BE FILED WITH  THE
COMMISSIONER  AND THE TAX ASSESSOR OF SUCH CITY WHO PREPARES THE ASSESS-
MENT ROLL ON WHICH THE TAXES OF SUCH CITY ARE LEVIED.
  (B) SUCH NATURAL GAS DISTRIBUTION FACILITIES SHALL BE  EXEMPT  TO  THE
EXTENT OF THE INCREASE IN THE ASSESSED VALUE THEREOF ATTRIBUTABLE TO THE
CONSTRUCTION  OF SUCH NATURAL GAS DISTRIBUTION FACILITIES. THE LENGTH OF
SUCH EXEMPTION AND THE PERCENTAGE  OF  ASSESSED  VALUATION  EXEMPT  FROM
TAXATION  SHALL  BE SET FORTH IN SUCH LOCAL LAW OR RESOLUTION, BUT IN NO
EVENT SHALL IT EXCEED TEN YEARS.
  3. CONSTRUCTION OF NATURAL GAS DISTRIBUTION FACILITIES SHALL BE DEEMED
TO HAVE COMMENCED WHEN THE AGENCY  OR  DEPARTMENT  OF  THE  CITY  HAVING
JURISDICTION HAS ISSUED A PERMIT FOR CONSTRUCTION WORK AND SUCH WORK HAS
BEGUN IN GOOD FAITH IN ACCORDANCE WITH SUCH PERMIT.
  4.  APPLICATION  FOR  EXEMPTION UNDER THIS SECTION SHALL BE FILED WITH
THE ASSESSORS BETWEEN FEBRUARY FIRST AND MARCH FIFTEENTH OF THE CALENDAR
YEAR  AND  BASED  ON  APPROVAL  BY  THE  PUBLIC  SERVICE  COMMISSION  OF
CONSTRUCTION  OF SUCH NATURAL GAS DISTRIBUTION FACILITIES, THE ASSESSORS
SHALL CERTIFY TO THE COLLECTING OFFICER THE AMOUNT OF THE EXEMPTION FROM
LOCAL AND MUNICIPAL TAXES. NO SUCH APPLICATION SHALL BE ACCEPTED BY  THE
ASSESSORS  UNLESS  ACCOMPANIED  BY  AN  APPROVAL FROM THE PUBLIC SERVICE
COMMISSION.
  5. SUCH EXEMPTION SHALL BE GRANTED ONLY  UPON  APPLICATION  BY  A  GAS
CORPORATION  OR  COMBINATION  GAS AND ELECTRIC CORPORATION WITH APPROVAL
FROM THE PUBLIC SERVICE CORPORATION FOR CONSTRUCTION OF SUCH NATURAL GAS
DISTRIBUTION FACILITIES.

S. 4211--A                          4

  S 7. Section 1001 of the public authorities law is amended by adding a
new undesignated paragraph to read as follows:
  IT  IS  FURTHER  DECLARED THAT THERE ARE SIGNIFICANT ECONOMIC BENEFITS
FROM THE EXTENSION OF NATURAL GAS DISTRIBUTION LINE INFRASTRUCTURE.    A
CRITICAL  ELEMENT  OF  NATURAL  GAS  DISTRIBUTION LINE EXTENSIONS IS THE
FINANCING OF THE CONSTRUCTION AND INVESTMENT NECESSARY FOR SUCH  NATURAL
GAS  DISTRIBUTION  LINE  EXTENSIONS. THE AUTHORITY IS AUTHORIZED TO MAKE
LOANS TO GAS CORPORATIONS AND COMBINED GAS AND ELECTRIC CORPORATIONS  TO
EFFECTUATE  THE  EXTENSION  OF  EXISTING  NATURAL  GAS DISTRIBUTION LINE
INFRASTRUCTURE WHICH IS APPROVED BY THE PUBLIC SERVICE COMMISSION.
  S 8. The public authorities law is amended by  adding  a  new  section
1005-b to read as follows:
  S  1005-B.  ADDITIONAL SPECIAL POWERS OF THE AUTHORITY WITH RESPECT TO
THE EXTENSION OF NATURAL GAS DISTRIBUTION LINE INFRASTRUCTURE.  IN ORDER
TO EFFECTUATE THE PURPOSES OF THIS TITLE, THE AUTHORITY SHALL  HAVE  THE
FOLLOWING  ADDITIONAL SPECIAL POWERS: TO EXTEND CREDIT AND MAKE LOANS TO
A GAS CORPORATION OR A COMBINED GAS AND ELECTRIC CORPORATION  FRANCHISED
BY  THE  PUBLIC  SERVICE  COMMISSION  IN  CONNECTION  WITH A NATURAL GAS
DISTRIBUTION LINE EXTENSION  PROJECT  APPROVED  BY  THE  PUBLIC  SERVICE
COMMISSION  FOR  COSTS  INCURRED  WITH  SUCH  PROJECTS COMPLETED OR NOT,
COMPLETED AT THE TIME OF SUCH CREDIT OR LOAN,  WHICH  CREDITS  OR  LOANS
MAY,  BUT  NEED  NOT BE SECURED BY MORTGAGES, CONTRACTS OR OTHER INSTRU-
MENTS, UPON SUCH TERMS  AND  CONDITIONS  AS  THE  CORPORATION  MAY  DEEM
REASONABLE  IN CONNECTION WITH SUCH CREDITS OR LOANS. IN THE EXERCISE OF
POWERS GRANTED IN THIS SECTION IN CONNECTION WITH A NATURAL GAS DISTRIB-
UTION LINE EXTENSION PROJECT APPROVED BY THE PUBLIC  SERVICE  COMMISSION
FOR  A  GAS  CORPORATION  OR A COMBINED GAS AND ELECTRIC CORPORATION, TO
REQUIRE THE INCLUSION IN ANY CONTRACT, LOAN AGREEMENT OR  OTHER  INSTRU-
MENT,  OF  SUCH  PROVISIONS  FOR  THE FINANCING OF SUCH PROJECT AND SUCH
OTHER FINANCIAL AND OTHER COVENANTS APPLYING TO SUCH GAS CORPORATIONS OR
A COMBINED GAS AND ELECTRIC CORPORATION, AS  THE  CORPORATION  MAY  DEEM
NECESSARY  OR  DESIRABLE AND TO DO ALL THINGS AND TO EXECUTE ALL INSTRU-
MENTS NECESSARY AND DESIRABLE IN  CONNECTION  THEREWITH.  IN  CONNECTION
WITH THE EXTENSION OF ANY SUCH CREDIT OR LOAN, THE AUTHORITY MAY FIX AND
COLLECT  SUCH  FEES AND CHARGES, INCLUDING BUT NOT LIMITED TO REIMBURSE-
MENT OF ALL COSTS OF FINANCING BY THE CORPORATION AS  SHALL  BE  REASON-
ABLE.  IN  CONNECTION  WITH SUCH EXTENSION OF CREDIT OR LOAN AS PROVIDED
FOR HEREIN SUCH GAS CORPORATION OR A COMBINED GAS  AND  ELECTRIC  CORPO-
RATION SHALL SUBMIT TO THE AUTHORITY AN APPLICATION FOR THE EXTENSION OF
CREDIT  OR  LOAN AS SET FORTH IN THE APPLICATION. THE AUTHORITY MAY DENY
ANY SUCH APPLICATION FOR ANY REASON IT DEEMS IN THE PUBLIC INTEREST. THE
EXTENSION OF ANY SUCH CREDIT OR LOAN  IS  SUBJECT  TO  APPROVAL  BY  THE
PUBLIC  SERVICE  COMMISSION  OF THE PROJECT OR PROJECTS FOR SUCH NATURAL
GAS DISTRIBUTION LINE EXTENSION.
  S 9. Subdivision 1 of section 1010 of the public authorities  law,  as
amended  by  chapter  972  of  the  laws  of 1969, is amended to read as
follows:
  1. The authority shall have power and is hereby authorized  from  time
to  time  to  issue  its  negotiable bonds in conformity with applicable
provisions of the uniform commercial code for the purpose  of  financing
any  project  authorized by this title, including the acquisition of any
real or personal property or facilities deemed necessary by the authori-
ty, AND FOR THE MAKING OF LOANS TO A GAS CORPORATION  OR  A  COMBINATION
GAS AND ELECTRIC CORPORATION FRANCHISED BY THE PUBLIC SERVICE COMMISSION
FOR THE PURPOSES OF SECTION ONE THOUSAND FIVE-B OF THIS TITLE.
  S 10. This act shall take effect immediately.