This bill has been amended

Bill S5583-2013

Authorizes unallocated power to be used in connection with the St. Lawrence river valley economic development fund

Authorizes unallocated power to be used in connection with the St. Lawrence river valley economic development fund.

Details

Actions

  • Jun 4, 2013: REPORTED AND COMMITTED TO FINANCE
  • May 22, 2013: REFERRED TO ENERGY AND TELECOMMUNICATIONS

Meetings

Votes

VOTE: COMMITTEE VOTE: - Energy and Telecommunications - Jun 4, 2013
Ayes (11): Maziarz, Carlucci, Fuschillo, Griffo, O'Mara, Ritchie, Robach, Parker, Adams, Kennedy, Dilan

Memo

BILL NUMBER:S5583

TITLE OF BILL: An act to amend the public authorities law, in relation to authorizing unallocated power to be used for the specified purposes

PURPOSE: This legislation would authorize the allocation of up to twenty megawatts of power from the Saint Lawrence-FDR project to be used for the purposes of the St. Lawrence River Valley Economic Development Fund.

SUMMARY OF PROVISIONS:

Section 1 provides that Section 1005 of the Public Authorities Law is amended by adding four undesignated paragraphs to be the thirteenth, fourteenth, fifteenth and sixteenth undersigned paragraphs of the section.

Undesignated paragraph thirteen provides that up to twenty megawatts of power from the Saint Lawrence-FDR project can be sold in the wholesale market with the net earnings to be used for the purposes of the St. Lawrence River Valley Economic Development Fund. This paragraph also establishes the agency or agencies that shall administer the fund.

Undesignated paragraph fourteen provides the criteria for evaluating the applications seeking, to receive awards from the Saint Lawrence River Valley Economic Development Fund.

Undesignated paragraph fifteen provides that the RVRDA Advisory Group, as defined in undesignated paragraph thirteen, shall evaluate the applications and make recommendations to the New York State Power Authority for awards and the terms and conditions of such awards.

Undesignated paragraph sixteen provides that the transfer of benefits is prohibited unless specifically approved by the RVRDA Advisory Group.

Section 2 amends the opening paragraph of Subdivision 13 of section 1005 of the Public Authorities Law so that it is consistent with the new undesignated paragraphs that are added to Section 1005 of the Public Authorities Law in Section 1 of this bill.

Section 3 provides that this act shall take effect immediately.

JUSTIFICATION: In Western New York a program has been in place to allow for the monetization of certain power resources for the benefit of the host communities. But, a program allowing for the monetization of certain power resources in Northern New York has not been established. This legislation creates a program that will allow for the monetization of up to twenty megawatts of unallocated power to be used for the purposes of the Saint Lawrence County Economic Development Fund.

LEGISLATIVE HISTORY: New Bill.

FISCAL IMPLICATIONS: Minimal.

EFFECTIVE DATE: This act shall take effect immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 5583 2013-2014 Regular Sessions IN SENATE May 22, 2013 ___________
Introduced by Sens. RITCHIE, GRIFFO -- read twice and ordered printed, and when printed to be committed to the Committee on Energy and Tele- communications AN ACT to amend the public authorities law, in relation to authorizing unallocated power to be used for the specified purposes THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 1005 of the public authorities law is amended by adding four undesignated paragraphs to be the thirteenth, fourteenth, fifteenth and sixteenth undesignated paragraphs to read as follows: THE AUTHORITY IS AUTHORIZED TO ALLOCATE UP TO TWENTY MEGAWATTS OF POWER FROM THE SAINT LAWRENCE-FDR PROJECT HEREAFTER KNOWN AS "ST. LAWRENCE COUNTY ECONOMIC DEVELOPMENT POWER" WHICH IS UNALLOCATED AS OF THE EFFECTIVE DATE OF THIS PARAGRAPH, FOR SALE INTO THE WHOLESALE MARKET, THE NET EARNINGS FROM WHICH AND SUCH OTHER FUNDS OF THE AUTHORI- TY AS DEEMED FEASIBLE AND ADVISABLE BY THE TRUSTEES, SHALL BE USED FOR PURPOSES OF THE ST. LAWRENCE RIVER VALLEY ECONOMIC DEVELOPMENT FUND (HEREINAFTER REFERRED TO AS THE "SLRVED FUND"). SUCH PROCEEDS SHALL BE DISBURSED UPON RECOMMENDATION OF THE ST. LAWRENCE RIVER VALLEY REDEVEL- OPMENT DEVELOPMENT AGENCY AND/OR THE ST. LAWRENCE INDUSTRIAL DEVELOPMENT AGENCY AND/OR THEIR SUCCESSORS (HEREINAFTER THE RVRDA ADVISORY GROUP) PURSUANT TO THE FUND CONTEMPLATED IN THE AGREEMENT TO FUND THE ST. LAWRENCE RIVER VALLEY REDEVELOPMENT DEVELOPMENT AGENCY DATED JUNE 2, 2010 BY AND BETWEEN THE POWER AUTHORITY OF THE STATE OF NEW YORK (PASNY), THE ST. LAWRENCE COUNTY INDUSTRIAL DEVELOPMENT AGENCY LOCAL DEVELOPMENT CORPORATION AND THE PASNY HOST COMMUNITIES ON THE ST. LAWRENCE RIVER INCLUDING THE TOWNS OF WADDINGTON, LOUISVILLE, LISBON AND MASSENA, THE VILLAGES OF WADDINGTON AND MASSENA AND THE COUNTY OF ST. LAWRENCE. FOR PURPOSES OF THIS PARAGRAPH, THE TERM NET EARNINGS SHALL MEAN THE DIFFERENCE BETWEEN THE POWER AUTHORITY'S COST-BASED HYDROELEC- TRIC RATE FOR POWER AND ENERGY AND THE PREVAILING WHOLESALE MARKET PRICE
AT THE PROJECT IN THE MARKET ADMINISTERED BY THE NEW YORK INDEPENDENT SYSTEM OPERATOR. THE RVRDA ADVISORY GROUP SHALL SOLICIT APPLICATIONS FOR AND MAKE RECOMMENDATIONS FOR APPROVAL OF SLRVED FUND BENEFITS MADE AVAILABLE PURSUANT TO THIS PARAGRAPH. EACH APPLICATION FOR SLRVED FUND BENEFITS SHALL BE EVALUATED UNDER CRITERIA ADOPTED BY THE RVRDA ADVISORY GROUP, IN CONSULTATION WITH THE POWER AUTHORITY OF THE STATE OF NEW YORK, WHICH CRITERIA SHALL BE DESIGNED TO PROMOTE ECONOMIC DEVELOPMENT, MAINTAIN AND DEVELOP JOBS, AND ENCOURAGE NEW CAPITAL INVESTMENT WITHIN ST. LAWRENCE COUNTY. SUCH CRITERIA SHALL ADDRESS BUT NEED NOT BE LIMITED TO: (A) THE OVERALL ECONOMIC IMPACT OF THE APPLICANT IN TERMS OF THE NUMBER OF JOBS TO BE CREATED OR RETAINED, AVERAGE ANNUAL PAYROLL, CAPITAL INVESTMENT AND USE OF NEW YORK STATE SUPPLIERS; (B) THE LIKELIHOOD THAT IN THE ABSENCE OF APPROVAL OF THE SLRVED FUND BENEFIT, THE APPLICANT WOULD CLOSE, CONTRACT OR RELOCATE OUTSIDE THE STATE OF NEW YORK; (C) THE APPLICANT'S COMPLIANCE WITH THE COMMITMENT TO RETAIN AND/OR CREATE JOBS CONTAINED IN ITS PRIOR POWER CONTRACT WITH THE POWER AUTHORITY OF THE STATE OF NEW YORK; (D) THE EXTENT TO WHICH A SLRVED FUND BENEFIT WILL AFFECT THE OVERALL PRODUCTIVITY OR COMPETITIVENESS OF THE APPLICANT'S BUSINESS AND ITS EXISTING EMPLOYMENT WITHIN THE STATE; AND (E) THE OVER- ALL IMPACT OF THE PROJECT IN TERMS OF THE ECONOMIC VIABILITY OF IDENTI- FIED ULTIMATE SITE OR USER INCLUDING THE PROJECT'S ABILITY TO INDUCE ADDITIONAL COMMERCIAL ACTIVITY ON THE SITE, REVITALIZE AN URBAN AREA, AND ITS COMPLIANCE WITH REGIONAL DEVELOPMENT PLANS. APPLICATIONS FOR SLRVED FUND BENEFIT SHALL BE IN THE FORM AND CONTAIN SUCH INFORMATION, EXHIBITS AND SUPPORTING DATA AS THE RVRDA ADVISORY GROUP MAY PRESCRIBE. THE RVRDA ADVISORY GROUP SHALL REVIEW THE APPLICA- TIONS RECEIVED AND SHALL DETERMINE THE APPLICATIONS WHICH BEST MEET THE CRITERIA ESTABLISHED FOR THE BENEFITS PURSUANT TO THIS PARAGRAPH AND IT SHALL RECOMMEND SUCH APPLICATIONS TO THE POWER AUTHORITY OF THE STATE OF NEW YORK WITH SUCH TERMS AND CONDITIONS AS IT DEEMS APPROPRIATE. SUCH TERMS AND CONDITIONS SHALL INCLUDE REASONABLE PROVISIONS PROVIDING FOR THE PARTIAL OR COMPLETE WITHDRAWAL OF THE SLRVED FUND BENEFITS IN THE EVENT THAT THE RECIPIENT FAILS TO MAINTAIN MUTUALLY AGREED UPON COMMIT- MENTS THAT MAY INCLUDE, BUT ARE NOT LIMITED TO, INFRASTRUCTURE PROJECT COMPLETION. RECOMMENDATION FOR APPROVAL OF A SLRVED FUND BENEFIT SHALL QUALIFY AN APPLICANT TO RECEIVE A SLRVED FUND BENEFIT FROM THE POWER AUTHORITY OF THE STATE OF NEW YORK PURSUANT TO THE TERMS AND CONDITIONS OF THE RECOMMENDATION. THE TRANSFER OF SLRVED FUND BENEFITS SHALL BE PROHIBITED UNLESS SPECIFICALLY APPROVED BY THE RVRDA ADVISORY GROUP AS CONSISTENT WITH THE CRITERIA ESTABLISHED PURSUANT TO THIS PARAGRAPH. ANY TRANSFER WHICH OCCURS WITHOUT SUCH ADVISORY GROUP'S APPROVAL SHALL BE INVALID AND SUCH TRANSFER MAY SUBJECT THE RECIPIENT TO REVOCATION OF ITS BENEFIT AND MODIFICATION OR REVOCATION OF ITS CONTRACT. S 2. The opening paragraph of subdivision 13 of section 1005 of the public authorities law, as amended by chapter 645 of the laws of 2006, is amended to read as follows: Notwithstanding any other provision of law to the contrary but subject to the terms and conditions of federal energy regulatory commission licenses, to allocate or reallocate directly or by sale for resale, two hundred fifty megawatts of firm Niagara project hydroelectric power as "expansion power" and four hundred forty-five megawatts of firm Niagara project hydroelectric power as "replacement power" to businesses within the state located within thirty miles of the Niagara project, and four hundred ninety megawatts of firm and interruptible power from the Saint
Lawrence-FDR project as "preservation power" sold to businesses located within the counties of Jefferson, Saint Lawrence and Franklin, provided that the amount of expansion power allocated to businesses in Chautauqua county on January first, nineteen hundred eighty-seven shall continue to be allocated in such county and, provided further that up to seventy megawatts of replacement power, up to thirty-eight and six-tenths mega- watts of preservation power from the Saint Lawrence-FDR project which is relinquished or withdrawn after the effective date of chapter three hundred thirteen of the laws of two thousand five which amended this subdivision and, for the period ending on December thirty-first, two thousand six, up to twenty megawatts of other power from the Saint Lawrence-FDR project which is unallocated (HEREINAFTER "ST. LAWRENCE COUNTY ECONOMIC DEVELOPMENT POWER" OR SLCEDP) as of the effective date of chapter three hundred thirteen of the laws of two thousand five which amended this subdivision, shall be allocated by the authority together with such other funds of the authority as the trustees deem feasible and advisable for energy cost savings benefits pursuant to the twelfth undesignated paragraph of this section, AND FOR ST. LAWRENCE RIVER VALLEY ECONOMIC DEVELOPMENT FUND BENEFITS PURSUANT TO THIS SECTION. Provided, however, that the amount of replacement, preservation power, or the additional twenty megawatts of Saint Lawrence-FDR power for the period ending December thirty-first, two thousand six made available for such purpose, used for energy cost savings benefits that are relin- quished by or withdrawn from a recipient thereof shall be offered by the authority proportionately for a period of six months for reallocation to applicants who qualify respectively for replacement or preservation power allocations as provided in this subdivision. If such power is not allocated within such period it shall be allocated for the purpose of energy cost savings benefits pursuant to [subdivision (h) of] section one hundred eighty-three of the economic development law, EXCEPT TO THE EXTENT USED TO FUND THE ST. LAWRENCE RIVER VALLEY ECONOMIC DEVELOPMENT FUND. The authority shall negotiate contracts on reasonable terms and conditions to renew or extend every permanent contract allocation of expansion power in effect on the effective date of this subdivision and, to the extent consistent with such contracts, the authority shall nego- tiate contracts on reasonable terms and conditions to extend or renew all other allocations or allotments of such power in effect on such date. The authority shall negotiate contracts on reasonable terms and conditions to renew or extend for a period of at least five years every permanent contract allocation of replacement power in effect on the effective date of chapter three hundred thirteen of the laws of two thousand five which added this sentence and that would expire by its terms on or before the end of the initial federal energy regulatory commission license for the Niagara project; provided that, in negotiat- ing the terms and conditions of such contracts, the authority may consider a business' compliance with all current contractual obli- gations, including employment and power usage commitments. Contracts entered into pursuant to this subdivision shall contain reasonable provisions providing for the partial or complete withdrawal of the power in the event the recipient fails to maintain mutually agreed levels of employment, investment, and power utilization. Expansion or replacement power relinquished by businesses or withdrawn by the authority shall be allocated directly or by sale for resale by the authority to businesses within the state located within thirty miles of the Niagara project provided, that the PROCEEDS FROM THE SALE OF SUCH UNALLOCATED AND ALLO- CATED, BUT RELINQUISHED OR WITHDRAWN OR CURRENTLY NOT ACCESSED EXPANSION
OR REPLACEMENT POWER, AS SHALL BE DETERMINED BY THE TRUSTEES, SHALL BE ALLOCATED FOR THE PURPOSES OF WESTERN NEW YORK ECONOMIC DEVELOPMENT FUND BENEFITS PURSUANT TO THE ELEVENTH UNDESIGNATED PARAGRAPH OF THIS SECTION. PROCEEDS TO SUCH WESTERN NEW YORK ECONOMIC DEVELOPMENT FUND SHALL NOT PRECLUDE THE AUTHORITY FROM ALLOCATING EXPANSION OR REPLACE- MENT POWER TO ELIGIBLE COMPANIES UNDER THE PROVISIONS OF THIS SECTION. THE amount of power allocated to businesses in Chautauqua county on January first, nineteen hundred eighty-seven shall be allocated in such county. Preservation power that is relinquished by businesses or with- drawn by the authority shall be allocated directly or by sale for resale by the authority within the counties of Jefferson, Saint Lawrence and Franklin. ST. LAWRENCE COUNTY ECONOMIC DEVELOPMENT POWER SHALL BE USED TO FUND THE SLRVED FUND PURSUANT TO THIS SECTION. Allocations made pursuant to this paragraph shall be made in accordance with criteria established by the trustees. Such criteria shall address the expansion of industry and employment pursuant to paragraph (a) of this subdivision and the revitalization of existing industry pursuant to paragraph (b) of this subdivision. PRESERVATION POWER OR ST. LAWRENCE COUNTY ECONOMIC DEVELOPMENT POWER RELINQUISHED OR WITHDRAWN OR CURRENTLY NOT ACCESSED, AS SHALL BE DETERMINED BY THE TRUSTEES, SHALL BE ALLOCATED FOR THE PURPOSES OF ST. LAWRENCE RIVER VALLEY ECONOMIC DEVELOPMENT FUND BENEFITS PURSUANT TO THIS SECTION. PROCEEDS TO SUCH ST. LAWRENCE RIVER VALLEY ECONOMIC DEVELOPMENT FUND SHALL NOT PRECLUDE THE AUTHORITY FROM ALLOCAT- ING EXPANSION OR REPLACEMENT POWER TO ELIGIBLE COMPANIES UNDER THE PROVISIONS OF THIS SECTION. S 3. This act shall take effect immediately.

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Discuss!

blog comments powered by Disqus