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BILL NUMBER:S4747

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: 2009: A.2056

FISCAL IMPLICATIONS: Subject to appropriation.

EFFECTIVE DATE: This act shall take effect on the ninetieth day after it shall have become a law.

Text

STATE OF NEW YORK
________________________________________________________________________

4747

2011-2012 Regular Sessions

IN SENATE

April 18, 2011
___________

Introduced  by  Sen.  O'MARA -- read twice and ordered printed, and when
  printed to be committed to the Committee on  Energy  and  Telecommuni-
  cations

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.
                                                           LBD09723-01-1
S. 4747                             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.