This bill has been amended

Bill S5861B-2013

Authorizes the power authority of the state of New York and the Long Island power authority to enter into public-private partnerships for the improvement of the state's electric transmission grid

Authorizes the power authority of the state of New York and the Long Island power authority to enter into public-private partnerships for the improvement of the state's electric transmission grid.

Details

Actions

  • Feb 27, 2014: REPORTED AND COMMITTED TO FINANCE
  • Feb 11, 2014: PRINT NUMBER 5861B
  • Feb 11, 2014: AMEND AND RECOMMIT TO ENERGY AND TELECOMMUNICATIONS
  • Jan 22, 2014: PRINT NUMBER 5861A
  • Jan 22, 2014: AMEND AND RECOMMIT TO ENERGY AND TELECOMMUNICATIONS
  • Jan 8, 2014: REFERRED TO ENERGY AND TELECOMMUNICATIONS
  • Jan 8, 2014: returned to senate
  • Jan 8, 2014: died in assembly
  • Jun 24, 2013: referred to corporations, authorities and commissions
  • Jun 21, 2013: DELIVERED TO ASSEMBLY
  • Jun 21, 2013: PASSED SENATE
  • Jun 21, 2013: ORDERED TO THIRD READING CAL.1629
  • Jun 18, 2013: REFERRED TO RULES

Meetings

Votes

VOTE: COMMITTEE VOTE: - Energy and Telecommunications - Feb 27, 2014
Ayes (10): Maziarz, Carlucci, Griffo, O'Mara, Ritchie, Robach, Parker, Kennedy, Dilan, Peralta

Memo

BILL NUMBER:S5861B

TITLE OF BILL: An act to amend the public authorities law, in relation to authorizing the power authority of the state of New York and the Long Island power authority to participate in public-private transmission projects to improve the state's electric transmission grid

PURPOSE: This bill would allow the creation of a public-private partnership between the State's public utilities - the Power Authority of the State of New York (NYPA) and the Long Island Power Authority (LIPA) - and the State's private transmission owners, for the sole purpose of jointly developing, constructing and owning transmission facilities in New York State. This partnership would be in the form of a New York Transmission Company (Transco) that would pursue new transmission projects that would enhance the current capabilities of the bulk power system within New York State.

SUMMARY OF PROVISIONS:

Section 1 of the bill would provide legislative findings.

Section 2 would amend the "declaration of policy" in NYPA's enabling statute.

Section 3 would amend PAL § 1005 to, among other things, provide definitions of key terms, authorize NYPA to form a subsidiary company for purposes of participating in the Transco company, and to provide commensurate financial powers. This section would exempt projects from article eight of the environmental conservation law since these projects are subject to other regulatory review, which includes an environmental review. Further, this section specifies that any transmission company that may be created, may not engage in the construction of electric generating facilities and further clarifies that such company shall engage in projects directly related to transmission reinforcement and construction.

Section 4 of the bill would amend the legislative findings in LIPA's enabling statute PAL § 1020-a.

Section 5 would amend subdivision 2 of PAL § 1020-c(2) to provide LIPA or subsidiary company an interest in transmission assets that are located in whole or in part outside the LIPA service area.

Section 6 would amend PAL § 1020-f to provide authority consistent with the authority to be provided in section 3 of the bill.

Section 7 of the bill would provide a severability clause.

Section 8 of the bill would make the bill effective immediately.

EXISTING LAW: PAL § 1005 provides NYPA's existing authority, and PAL 1020-f provides LIPA's existing statutory authority.

JUSTIFICATION: The State's electric transmission system is facing two major challenges: 1) Aging infrastructure that requires significant reinvestment; and 2) System constraints that cause transmission

congestion, creating higher electric customer costs. Over 40 percent of the State's electric transmission system will require replacement within the next 30 years, at an estimated cost of $25 billion. Replacement is required to assure longterm reliability of the electric system. The State's electric transmission system is also congested at critical points on the pathways linking upstate and downstate New York. Together, New York City, Long Island, and Westchester County account for more than half of the demand for electricity in the State and this demand is increasing. However, in times of peak demand and high prices, lower-cost and/or cleaner power available from upstate cannot reach these densely populated areas because of the transmission bottlenecks Congestion can have adverse environmental and economic consequences. Older, less energy-efficient and cost-effective plants in urban areas run more frequently than they otherwise would if power from other sources of energy could reach these areas.

Under the approach provided for in this bill, NYPA and LIPA would each be authorized to form a subsidiary company to participate as a member of a Transco company. These public and private partners would enter into an agreement providing for the formation of the Transco company, the projects that could be undertaken by the Transco, and the rights and obligations of the Transco members. It is expected that the Transco agreement would authorize Transco members to enter into ancillary agreements that would provide for the administration of the Transco and individual Transco projects

This unique approach to addressing the State's aging infrastructure empowers the State's transmission owners to create a unified plan for statewide electric power benefits. Such a partnership would facilitate state-wide transmission planning, facilitate lower financing costs for grid infrastructure projects and improvements, and promote sorely needed and sensible investment in the State's power grid.

Transco projects will provide numerous short and long term benefits to New York residents, such as reducing transmission constraints between the upstate and downstate regions, creating a stronger and more resilient transmission system with improved reliability, creating jobs and stimulating statewide economic growth, increasing local property tax revenues, reducing pollution emissions by dispatching more energy efficient generation resources; and facilitating the integration of renewable resources, including wind generation resources, located in upstate and elsewhere in New York.

LEGISLATIVE HISTORY: This is a new bill.

BUDGET IMPLICATIONS: There are no budget implications.

EFFECTIVE DATE: This bill would take effect immediately upon enactment into law.


Text

STATE OF NEW YORK ________________________________________________________________________ 5861--B 2013-2014 Regular Sessions IN SENATE June 18, 2013 ___________
Introduced by Sens. MAZIARZ, O'MARA -- read twice and ordered printed, and when printed to be committed to the Committee on Rules -- recom- mitted to the Committee on Energy and Telecommunications in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the public authorities law, in relation to authorizing the power authority of the state of New York and the Long Island power authority to participate in public-private transmission projects to improve the state's electric transmission grid THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Legislative findings and purpose. The legislature hereby finds and determines that: 1. The state's vital electric transmission grid is aging, congested and subject to outages caused by storms, obsolescence and the growing demands for energy by the state's residents, and such problems and conditions pose serious threats to the health, welfare, safety and economic well-being of the people of the state of New York. 2. The condition and operation of the state's electric transmission grid is a matter of state concern, and it is in the public interest to provide for the means to repair, replace, reinforce, modernize and expand the state's electric transmission grid to ensure the safe and reliable provision of electric service to the state's residents now and into the future. 3. A modernized electric transmission grid and energy highway will also encourage investments in new energy-related infrastructure and technologies, facilitate the development and integration into the power grid of renewable energy resources, and stimulate and support economic development in the state. Public-private transmission projects undertak-
en jointly by the owner of transmission facilities, systems and infras- tructure, including the power authority of the state of New York and the Long Island power authority, which provide for the ongoing planning, construction, owning, operating, maintaining and expanding of electric transmission facilities, systems and infrastructure can serve as an effective means to address the aforementioned problems and concerns and stimulate ongoing critical investment in the state's electric trans- mission grid. 4. The purposes of this act can be achieved, while managing and miti- gating potential liabilities, by authorizing the power authority of the state of New York and the Long Island power authority to participate in such public-private transmission projects through the formation of subsidiary companies. S 2. Section 1001 of the public authorities law is amended by adding a new closing paragraph to read as follows: IT IS FURTHER DECLARED THAT: (A) THERE SHOULD BE FULL COOPERATION AND COORDINATION AMONG PRIVATE AND PUBLIC OWNERS AND OPERATORS OF ELECTRIC TRANSMISSION FACILITIES, SYSTEMS AND INFRASTRUCTURE IN THE STATE, INCLUDING THE AUTHORITY, FOR THE PURPOSE OF EXPEDITIOUSLY REPAIRING, REPLACING, REINFORCING, MODERNIZING AND EXPANDING THE STATE'S ELECTRIC TRANSMISSION GRID; (B) IT IS DESIRABLE THAT THE AUTHORITY, WHICH OWNS AND OPERATES ELECTRIC TRANSMISSION ASSETS IN THE STATE, PARTICIPATE IN PUBLIC-PRIVATE TRANSMISSION PROJECTS THAT ARE UNDERTAKEN BY A LIMITED LIABILITY COMPANY OR OTHER APPROPRIATE ORGANIZATIONAL STRUCTURE, THROUGH A SUBSIDIARY COMPANY FORMED BY THE AUTHORITY AS AUTHORIZED BY THIS TITLE; AND (C) THE AUTHORITY SHOULD BE AUTHORIZED TO PARTICIPATE IN PUBLIC-PRIVATE TRANSMISSION PROJECTS AND TRANSFER TRANSMISSION ASSETS OR ANY INTEREST THEREIN IN CONNECTION WITH ITS PARTICIPATION IN SUCH A LIMITED LIABILITY COMPANY OR OTHER APPROPRIATE ORGANIZATIONAL STRUCTURE ON SUCH TERMS AND CONDITIONS AS THE AUTHORITY MAY NEGOTIATE. S 3. Section 1005 of the public authorities law is amended by adding a new subdivision 25 to read as follows: 25. A. FOR PURPOSES OF THIS SUBDIVISION, THE FOLLOWING TERMS SHALL HAVE THE MEANINGS INDICATED: (I) "SUBSIDIARY COMPANY" MEANS A SUBSIDIARY COMPANY FORMED, WHOLLY-OWNED AND CONTROLLED BY THE AUTHORITY IN ACCORDANCE WITH AND SUBJECT TO THE BUSINESS CORPORATION LAW, THE NOT-FOR-PROFIT CORPORATION LAW, THE LIMITED LIABILITY COMPANY LAW OR THE TRANSPORTATION CORPO- RATIONS LAW. (II) "TRANSCO MASTER AGREEMENT" MEANS A WRITTEN AGREEMENT PROVIDING FOR THE FORMATION AND OPERATION OF A LIMITED LIABILITY COMPANY OR OTHER ORGANIZATIONAL STRUCTURE TO SERVE AS A TRANSCO COMPANY AND WHICH PROVIDES FOR, AMONG OTHER THINGS, THE RIGHTS AND OBLIGATIONS OF MEMBERS OF SUCH TRANSCO COMPANY. (III) "TRANSCO ANCILLARY AGREEMENT" MEANS A WRITTEN AGREEMENT, OTHER THAN A TRANSCO PROJECT AGREEMENT, BETWEEN THE AUTHORITY OR SUBSIDIARY COMPANY AND THE TRANSCO COMPANY AND/OR MEMBERS OF A TRANSCO COMPANY, MADE IN ACCORDANCE WITH THE TRANSCO MASTER AGREEMENT, FOR THE PURPOSE OF IMPLEMENTING THE TRANSCO MASTER AGREEMENT. (IV) "TRANSCO COMPANY" MEANS AN ENTITY FORMED IN ACCORDANCE WITH A TRANSCO MASTER AGREEMENT PRIMARILY FOR THE PURPOSE OF ENGAGING IN THE BUSINESS OF PLANNING, CONSTRUCTING, OWNING, OPERATING, MAINTAINING, AND EXPANDING ELECTRIC TRANSMISSION FACILITIES, SYSTEMS AND INFRASTRUCTURE SERVING THE PEOPLE OF THE STATE OF NEW YORK. (V) "TRANSCO PROJECT" MEANS A PROJECT UNDERTAKEN BY THE TRANSCO COMPA- NY IN ACCORDANCE WITH A TRANSCO MASTER AGREEMENT.
(VI) "TRANSCO PROJECT AGREEMENT" MEANS A WRITTEN AGREEMENT BETWEEN THE AUTHORITY OR SUBSIDIARY COMPANY AND THE TRANSCO COMPANY AND/OR MEMBERS OF A TRANSCO COMPANY, MADE IN ACCORDANCE WITH THE TRANSCO MASTER AGREE- MENT, THAT RELATES TO A SPECIFIC TRANSCO PROJECT. (VII) "TRANSMISSION ASSETS" MEANS: (1) ALL PHYSICAL ASSETS (INCLUDING BUT NOT LIMITED TO ELECTRICAL TRANSMISSION LINES, POLES, TOWERS AND SIMILAR STRUCTURES, CONDUITS, SUBSTATIONS, CONVERTER STATIONS, TRANSFOR- MERS, CONDUCTORS, INSULATORS, SWITCHING DEVICES, CONTROLS, BREAKERS, BUSES, STATIONS, RECTIFIERS, REGULATORS, EMERGENCY AND PROTECTIVE EQUIP- MENT AND DEVICES, UTILITY INTERCONNECTIONS AND OTHER EQUIPMENT USED OR NECESSARY FOR THE CONTROL, DISPATCH, RECEIPT AND DELIVERY OF ENERGY BY SUCH FACILITIES) USED FOR THE PURPOSE OF TRANSMITTING OR DELIVERING DIRECT OR ALTERNATING CURRENT ELECTRIC ENERGY AT VOLTAGES PRIMARILY OF ONE HUNDRED KILOVOLTS OR HIGHER TO LOADS OR INTERCONNECTION POINTS; AND (2) ALL ASSOCIATED (A) TANGIBLE AND INTANGIBLE PROPERTY USED TO OPERATE, CONTROL, PROTECT AND MAINTAIN SUCH ASSETS, (B) REAL PROPERTY RIGHTS FOR LANDS AND RIGHTS-OF-WAY, SITES, AND PLACES IN WHICH SUCH ASSETS ARE SITUATED OR INSTALLED, AND (C) LEGAL AND REGULATORY RIGHTS, AUTHORI- ZATIONS, PERMITS, AND CONSENTS OF ANY NATURE TO OWN, OCCUPY, CONSTRUCT, USE, OPERATE AND MAINTAIN, AND RECEIVE OR DISPOSE OF REVENUES FROM SUCH ASSETS OR LANDS ON WHICH SUCH ASSETS ARE SITUATED, EXISTING, OWNED, LEASED, DESIGNED, USED AND OPERATED. B. NOTWITHSTANDING THE PROVISIONS OF ANY OTHER LAW, THE AUTHORITY MAY (I) PARTICIPATE IN PUBLIC/PRIVATE PARTNERSHIPS TO PROVIDE FOR THE MEANS TO REPAIR, REPLACE, REINFORCE, MODERNIZE AND EXPAND THE STATE'S ELECTRIC TRANSMISSION GRID TO ENSURE THE SAFE AND RELIABLE PROVISION OF ELECTRIC SERVICE TO THE STATE'S RESIDENTS NOW AND INTO THE FUTURE, (II) FORM A SUBSIDIARY COMPANY FOR THE PURPOSE OF PARTICIPATING IN A TRANSCO COMPA- NY, (III) PARTICIPATE IN THE TRANSCO COMPANY BY CAUSING THE SUBSIDIARY COMPANY TO BECOME A PARTY TO A TRANSCO MASTER AGREEMENT AND EXERCISE THE RIGHTS AND PERFORM THE OBLIGATIONS OF A TRANSCO COMPANY MEMBER AS MAY BE PROVIDED FOR IN A TRANSCO MASTER AGREEMENT, AND (IV) EXERCISE THE OTHER POWERS AND DUTIES PROVIDED FOR BY THIS SUBDIVISION. C. NOTWITHSTANDING THE PROVISIONS OF ANY OTHER LAW, IN ADDITION TO ANY OTHER POWERS AND DUTIES GRANTED TO IT UNDER THIS TITLE, THE AUTHORITY SHALL BE AUTHORIZED TO: (I) EXERCISE ALL OF THE RIGHTS AND PRIVILEGES ASSOCIATED WITH ANY OWNERSHIP INTEREST IN OR ORGANIZER OF THE SUBSIDIARY COMPANY; (II) ISSUE ITS BONDS, NOTES AND OTHER EVIDENCE OF INDEBTEDNESS TO FINANCE THE OPERATIONS OF THE SUBSIDIARY COMPANY, INCLUDING THE SUBSID- IARY COMPANY'S PARTICIPATION IN AND OBLIGATIONS UNDERTAKEN IN CONNECTION WITH A TRANSCO COMPANY; (III) LEND, OR OTHERWISE TRANSFER MONIES TO THE SUBSIDIARY COMPANY, INCLUDING THE PROCEEDS OF THE AUTHORITY'S BONDS, NOTES, OTHER EVIDENCE OF INDEBTEDNESS AND OTHER AUTHORITY FUNDS; (IV) RECEIVE MONIES FROM THE SUBSIDIARY COMPANY, INCLUDING MONIES THAT RESULT FROM THE OPERATION OF THE TRANSCO COMPANY; (V) AS DEEMED FEASIBLE AND ADVISABLE BY THE TRUSTEES, TRANSFER TO THE SUBSIDIARY COMPANY TRANSMISSION ASSETS OR INTERESTS THEREIN THAT HAVE BEEN OR ARE EXPECTED TO BE USED IN PROJECTS UNDERTAKEN BY THE TRANSCO COMPANY FOR SUCH CONSIDERATION AND ON SUCH OTHER TERMS AND CONDITIONS AS THE AUTHORITY SHALL NEGOTIATE; (VI) RECEIVE FROM THE SUBSIDIARY COMPANY OR THE TRANSCO COMPANY ANY PERSONAL OR REAL PROPERTY; (VII) ENTER INTO GUARANTEE AGREEMENTS IN CONNECTION WITH THE SUBSID- IARY COMPANY'S PARTICIPATION IN THE TRANSCO COMPANY;
(VIII) ENTER INTO CONTRACTS AND OTHER FORMS OF AGREEMENT WITH THE TRANSCO COMPANY, THE SUBSIDIARY COMPANY AND OTHER MEMBERS OF THE TRANSCO COMPANY; (IX) PLEDGE OR ASSIGN ALL OR ANY PORTION OF ANY INTEREST IN A TRANSCO COMPANY; (X) TRANSFER AND RECEIVE ALL OR ANY PORTION OF ANY INTEREST IN A TRAN- SCO COMPANY; (XI) SELL, PURCHASE, OR OTHERWISE TRANSFER ALL OR ANY PORTION OF ANY INTEREST IN A TRANSCO COMPANY ON SUCH TERMS AND CONDITIONS AS THE AUTHORITY DEEMS APPROPRIATE; (XII) ASSIGN ONE OR MORE EMPLOYEES TO PROVIDE SERVICES TO A TRANSCO COMPANY FOR A SPECIFIED PERIOD OF TIME, PROVIDED THAT ANY SUCH EMPLOYEE SHALL CONTINUE TO BE AN EMPLOYEE OF THE AUTHORITY; AND (XIII) DISSOLVE OR TERMINATE THE SUBSIDIARY COMPANY IN ACCORDANCE WITH APPLICABLE LAW. D. NOTWITHSTANDING THE PROVISIONS OF ANY OTHER LAW, NO TRUSTEE, OFFI- CER OR EMPLOYEE OF THE STATE, OR OF ANY STATE AGENCY, PUBLIC AUTHORITY OR PUBLIC BENEFIT CORPORATION, SHALL BE DEEMED TO HAVE FORFEITED OR SHALL FORFEIT SUCH PERSON'S OFFICE OR EMPLOYMENT OR ANY BENEFITS ASSOCI- ATED THEREWITH BY REASON OF SUCH PERSON'S ACCEPTANCE OF MEMBERSHIP ON, OR SUCH PERSON BEING AN OFFICER, EMPLOYEE OR AGENT OF A SUBSIDIARY COMPANY, OR BY REASON OF SUCH PERSON'S PROVISION OF SERVICES TO A SUBSIDIARY COMPANY. E. THE PROVISIONS OF SECTION TWENTY-EIGHT HUNDRED SEVENTY-NINE-A OF THIS CHAPTER SHALL BE APPLICABLE TO ANY TRANSCO MASTER AGREEMENT TO WHICH THE AUTHORITY OR SUBSIDIARY COMPANY IS A PARTY, BUT SHALL BE INAP- PLICABLE TO ANY TRANSCO ANCILLARY AGREEMENT OR TRANSCO PROJECT AGREEMENT THAT OTHERWISE SATISFIES THE REQUIREMENTS OF PARAGRAPH (A) OR (B) OF SUBDIVISION ONE OF SUCH SECTION PROVIDED THAT (I) A FINAL OR SUBSTAN- TIALLY NEGOTIATED FORM OF SUCH TRANSCO ANCILLARY AGREEMENT OR TRANSCO PROJECT AGREEMENT, AS THE CASE MAY BE, IS ANNEXED TO A TRANSCO MASTER AGREEMENT THAT HAS BECOME VALID AND ENFORCEABLE IN ACCORDANCE WITH THE PROVISIONS OF SECTION TWENTY-EIGHT HUNDRED SEVENTY-NINE-A OF THIS CHAP- TER, AND (II) IN THE CASE OF A TRANSCO PROJECT AGREEMENT, THE FINAL EXECUTED FORM OF SUCH TRANSCO PROJECT AGREEMENT IS LIMITED TO A TRANSCO PROJECT THAT WAS IDENTIFIED IN SUCH TRANSCO MASTER AGREEMENT. F. THE PROVISIONS OF TITLE FIVE-A OF ARTICLE NINE OF THIS CHAPTER SHALL BE INAPPLICABLE TO ANY DISPOSAL OF PROPERTY BY THE AUTHORITY OR SUBSIDIARY COMPANY THAT (I) IS OTHERWISE AUTHORIZED BY THIS TITLE, OR (II) IS MADE IN ACCORDANCE WITH A TRANSCO MASTER AGREEMENT THAT HAS BECOME VALID AND ENFORCEABLE IN ACCORDANCE WITH THE PROVISIONS OF SECTION TWENTY-EIGHT HUNDRED SEVENTY-NINE-A OF THIS CHAPTER. G. NO ACTS OR ACTIVITIES TAKEN OR PROPOSED TO BE TAKEN BY THE AUTHORI- TY OR A SUBSIDIARY COMPANY PURSUANT TO THE PROVISIONS OF THIS SUBDIVI- SION, INCLUDING THE EXECUTION OF A TRANSCO MASTER AGREEMENT, AND THE ISSUANCE OF BONDS, NOTES, OR OTHER OBLIGATIONS, SHALL BE DEEMED TO BE "ACTIONS" FOR THE PURPOSES OR WITHIN THE MEANING OF ARTICLE EIGHT OF THE ENVIRONMENTAL CONSERVATION LAW. H. NOTWITHSTANDING THE PROVISIONS OF ANY OTHER LAW TO THE CONTRARY, THE AUTHORITY AND THE SUBSIDIARY COMPANY ONLY MAY PARTICIPATE IN A TRAN- SCO COMPANY THAT REPAIRS, REPLACES, REINFORCES, MODERNIZES AND EXPANDS TRANSMISSION ASSETS, AND, ANY TRANSCO COMPANY IS PROHIBITED FROM FINANC- ING OR CONSTRUCTING NEW ELECTRIC GENERATING FACILITIES. S 4. Section 1020-a of the public authorities law, as added by chapter 517 of the laws of 1986, is amended by adding a new closing paragraph to read as follows:
THE LEGISLATURE FURTHER FINDS AND DECLARES THAT: (I) THERE SHOULD BE FULL COOPERATION AND COORDINATION AMONG PRIVATE AND PUBLIC OWNERS AND OPERATORS OF ELECTRIC TRANSMISSION FACILITIES, SYSTEMS AND INFRASTRUC- TURE IN THE STATE, INCLUDING THE AUTHORITY, FOR THE PURPOSE OF EXPE- DITIOUSLY REPAIRING, REPLACING, REINFORCING, MODERNIZING AND EXPANDING THE STATE'S ELECTRIC TRANSMISSION GRID; (II) IT IS DESIRABLE THAT THE AUTHORITY, WHICH OWNS AND OPERATES ELECTRIC TRANSMISSION ASSETS IN THE STATE, PARTICIPATES IN PUBLIC-PRIVATE TRANSMISSION PROJECTS THAT ARE UNDERTAKEN BY A LIMITED LIABILITY COMPANY OR OTHER APPROPRIATE ORGANIZA- TIONAL STRUCTURE, THROUGH A SUBSIDIARY COMPANY FORMED BY THE AUTHORITY AS AUTHORIZED BY THIS TITLE; AND (III) THE AUTHORITY SHOULD BE AUTHOR- IZED TO PARTICIPATE IN PUBLIC-PRIVATE TRANSMISSION PROJECTS AND TRANSFER TRANSMISSION ASSETS OR ANY INTEREST THEREIN IN CONNECTION WITH ITS PARTICIPATION IN SUCH A LIMITED LIABILITY COMPANY OR OTHER APPROPRIATE ORGANIZATIONAL STRUCTURE ON SUCH TERMS AND CONDITIONS AS THE AUTHORITY MAY NEGOTIATE. S 5. Subdivision 2 of section 1020-c of the public authorities law, as added by chapter 517 of the laws of 1986, is amended to read as follows: 2. The area of operations of the authority shall be the service area, PROVIDED THAT THE AUTHORITY OR SUBSIDIARY COMPANY MAY OWN AN INTEREST IN TRANSMISSION ASSETS THAT ARE LOCATED IN WHOLE OR IN PART OUTSIDE THE SERVICE AREA. S 6. Section 1020-f of the public authorities law is amended by adding a new subdivision (g-1) to read as follows: (G-1) (I) FOR PURPOSES OF THIS SUBDIVISION, THE FOLLOWING TERMS HAVE THE MEANINGS INDICATED: 1. "SUBSIDIARY COMPANY" MEANS A SUBSIDIARY COMPANY FORMED, WHOLLY-OWNED AND CONTROLLED BY THE AUTHORITY IN ACCORDANCE WITH AND SUBJECT TO THE BUSINESS CORPORATION LAW, THE NOT-FOR-PROFIT CORPORATION LAW, THE LIMITED LIABILITY COMPANY LAW OR THE TRANSPORTATION CORPO- RATIONS LAW. 2. "TRANSCO MASTER AGREEMENT" MEANS A WRITTEN AGREEMENT PROVIDING FOR THE FORMATION AND OPERATION OF A LIMITED LIABILITY COMPANY OR OTHER ORGANIZATIONAL STRUCTURE TO SERVE AS A TRANSCO COMPANY AND WHICH PROVIDES FOR, AMONG OTHER THINGS, THE RIGHTS AND OBLIGATIONS OF MEMBERS OF SUCH TRANSCO COMPANY. 3. "TRANSCO ANCILLARY AGREEMENT" MEANS A WRITTEN AGREEMENT, OTHER THAN A TRANSCO PROJECT AGREEMENT, BETWEEN THE AUTHORITY OR SUBSIDIARY COMPANY AND THE TRANSCO COMPANY AND/OR MEMBERS OF A TRANSCO COMPANY, MADE IN ACCORDANCE WITH THE TRANSCO MASTER AGREEMENT, FOR THE PURPOSE OF IMPLE- MENTING THE TRANSCO MASTER AGREEMENT. 4. "TRANSCO COMPANY" MEANS AN ENTITY FORMED IN ACCORDANCE WITH A TRAN- SCO MASTER AGREEMENT PRIMARILY FOR THE PURPOSE OF ENGAGING IN THE BUSI- NESS OF PLANNING, CONSTRUCTING, OWNING, OPERATING, MAINTAINING, AND EXPANDING ELECTRIC TRANSMISSION FACILITIES, SYSTEMS AND INFRASTRUCTURE SERVING THE PEOPLE OF THE STATE OF NEW YORK. 5. "TRANSCO PROJECT" MEANS A PROJECT UNDERTAKEN BY THE TRANSCO COMPANY IN ACCORDANCE WITH A TRANSCO MASTER AGREEMENT. 6. "TRANSCO PROJECT AGREEMENT" MEANS A WRITTEN AGREEMENT BETWEEN THE AUTHORITY OR SUBSIDIARY COMPANY AND THE TRANSCO COMPANY AND/OR MEMBERS OF A TRANSCO COMPANY, MADE IN ACCORDANCE WITH THE TRANSCO MASTER AGREE- MENT, THAT RELATES TO A SPECIFIC TRANSCO PROJECT. 7. "TRANSMISSION ASSETS" MEANS: (A) ALL PHYSICAL ASSETS (INCLUDING BUT NOT LIMITED TO ELECTRICAL TRANSMISSION LINES, POLES, TOWERS AND SIMILAR STRUCTURES, CONDUITS, SUBSTATIONS, CONVERTER STATIONS, TRANSFORMERS, CONDUCTORS, INSULATORS, SWITCHING DEVICES, CONTROLS, BREAKERS, BUSES,
STATIONS, RECTIFIERS, REGULATORS, EMERGENCY AND PROTECTIVE EQUIPMENT AND DEVICES, UTILITY INTERCONNECTIONS AND OTHER EQUIPMENT USED OR NECESSARY FOR THE CONTROL, DISPATCH, RECEIPT AND DELIVERY OF ENERGY BY SUCH FACIL- ITIES) USED FOR THE PURPOSE OF TRANSMITTING OR DELIVERING DIRECT OR ALTERNATING CURRENT ELECTRIC ENERGY AT VOLTAGES PRIMARILY OF ONE HUNDRED KILOVOLTS OR HIGHER TO LOADS OR INTERCONNECTION POINTS; AND (B) ALL ASSOCIATED (I) TANGIBLE AND INTANGIBLE PROPERTY USED TO OPERATE, CONTROL, PROTECT AND MAINTAIN SUCH ASSETS, (II) REAL PROPERTY RIGHTS FOR LANDS AND RIGHTS-OF-WAY, SITES, AND PLACES IN WHICH SUCH ASSETS ARE SITUATED OR INSTALLED, AND (III) LEGAL AND REGULATORY RIGHTS, AUTHORI- ZATIONS, PERMITS, AND CONSENTS OF ANY NATURE TO OWN, OCCUPY, CONSTRUCT, USE, OPERATE AND MAINTAIN, AND RECEIVE OR DISPOSE OF REVENUES FROM SUCH ASSETS OR LANDS ON WHICH SUCH ASSETS ARE SITUATED, EXISTING, OWNED, LEASED, DESIGNED, USED AND OPERATED. (II) NOTWITHSTANDING THE PROVISIONS OF ANY OTHER LAW, INCLUDING THE PROVISIONS OF SECTION ONE THOUSAND TWENTY-I OF THIS TITLE, THE AUTHORITY MAY 1. FORM A SUBSIDIARY COMPANY FOR THE PURPOSE OF PARTICIPATING IN A TRANSCO COMPANY, 2. PARTICIPATE IN THE TRANSCO COMPANY BY CAUSING THE SUBSIDIARY COMPANY TO BECOME A PARTY TO A TRANSCO MASTER AGREEMENT AND EXERCISE THE RIGHTS AND PERFORM THE OBLIGATIONS OF A TRANSCO COMPANY MEMBER AS MAY BE PROVIDED FOR IN A TRANSCO MASTER AGREEMENT, AND 3. EXERCISE THE OTHER POWERS AND DUTIES PROVIDED FOR BY THIS SUBDIVISION. (III) NOTWITHSTANDING THE PROVISIONS OF ANY OTHER LAW, IN ADDITION TO ANY OTHER POWERS AND DUTIES GRANTED TO IT UNDER THIS TITLE, THE AUTHORI- TY SHALL BE AUTHORIZED TO: 1. PARTICIPATE IN PUBLIC/PRIVATE PARTNERSHIPS TO PROVIDE FOR THE MEANS TO REPAIR, REPLACE, REINFORCE, MODERNIZE AND EXPAND THE STATE'S ELECTRIC TRANSMISSION GRID TO ENSURE THE SAFE AND RELIABLE PROVISION OF ELECTRIC SERVICE TO THE SERVICE AREA AND THE STATE'S RESIDENTS NOW AND INTO THE FUTURE; 2. EXERCISE ALL OF THE RIGHTS AND PRIVILEGES ASSOCIATED WITH ANY OWNERSHIP INTEREST IN OR ORGANIZER OF THE SUBSIDIARY COMPANY; 3. ISSUE ITS BONDS, NOTES AND OTHER EVIDENCE OF INDEBTEDNESS TO FINANCE THE OPERATIONS OF THE SUBSIDIARY COMPANY, INCLUDING THE SUBSID- IARY COMPANY'S PARTICIPATION IN AND OBLIGATIONS UNDERTAKEN IN CONNECTION WITH A TRANSCO COMPANY; 4. LEND, OR OTHERWISE TRANSFER MONIES TO THE SUBSIDIARY COMPANY, INCLUDING THE PROCEEDS OF THE AUTHORITY'S BONDS, NOTES, OTHER EVIDENCE OF INDEBTEDNESS AND OTHER AUTHORITY FUNDS; 5. RECEIVE MONIES FROM THE SUBSIDIARY COMPANY, INCLUDING MONIES THAT RESULT FROM THE OPERATION OF THE TRANSCO COMPANY; 6. AS DEEMED FEASIBLE AND ADVISABLE BY THE TRUSTEES, TRANSFER TO THE SUBSIDIARY COMPANY TRANSMISSION ASSETS THAT HAVE BEEN OR ARE EXPECTED TO BE USED IN PROJECTS UNDERTAKEN BY THE TRANSCO COMPANY FOR SUCH CONSIDER- ATION AND ON SUCH OTHER TERMS AND CONDITIONS AS THE AUTHORITY SHALL NEGOTIATE; 7. RECEIVE FROM THE SUBSIDIARY COMPANY OR THE TRANSCO COMPANY ANY PERSONAL OR REAL PROPERTY; 8. ENTER INTO GUARANTEE AGREEMENTS IN CONNECTION WITH THE SUBSIDIARY COMPANY'S PARTICIPATION IN THE TRANSCO COMPANY; 9. ENTER INTO CONTRACTS AND OTHER FORMS OF AGREEMENT WITH THE TRANSCO COMPANY, THE SUBSIDIARY COMPANY AND OTHER MEMBERS OF THE TRANSCO COMPA- NY; 10. PLEDGE OR ASSIGN ALL OR ANY PORTION OF ANY INTEREST IN A TRANSCO COMPANY;
11. TRANSFER AND RECEIVE ALL OR ANY PORTION OF ANY INTEREST IN A TRAN- SCO COMPANY; 12. SELL, PURCHASE, OR OTHERWISE TRANSFER ALL OR ANY PORTION OF ANY INTEREST IN A TRANSCO COMPANY ON SUCH TERMS AND CONDITIONS AS THE AUTHORITY DEEMS APPROPRIATE; 13. ASSIGN ONE OR MORE EMPLOYEES TO PROVIDE SERVICES TO A TRANSCO COMPANY FOR A SPECIFIED PERIOD OF TIME, PROVIDED THAT ANY SUCH EMPLOYEE SHALL CONTINUE TO BE AN EMPLOYEE OF THE AUTHORITY; AND 14. DISSOLVE OR TERMINATE THE SUBSIDIARY COMPANY IN ACCORDANCE WITH APPLICABLE LAW. (IV) NOTWITHSTANDING THE PROVISIONS OF ANY OTHER LAW, NO TRUSTEE, OFFICER OR EMPLOYEE OF THE STATE, OR OF ANY STATE AGENCY, PUBLIC AUTHOR- ITY OR PUBLIC BENEFIT CORPORATION, SHALL BE DEEMED TO HAVE FORFEITED OR SHALL FORFEIT SUCH PERSON'S OFFICE OR EMPLOYMENT OR ANY BENEFITS ASSOCI- ATED THEREWITH BY REASON OF SUCH PERSON'S ACCEPTANCE OF MEMBERSHIP ON, OR SUCH PERSON BEING AN OFFICER, EMPLOYEE OR AGENT OF, A SUBSIDIARY COMPANY, OR BY REASON OF SUCH PERSON'S PROVISION OF SERVICES TO A SUBSIDIARY COMPANY. (V) THE PROVISIONS OF SECTION ONE THOUSAND TWENTY-CC OF THIS TITLE SHALL BE INAPPLICABLE TO ANY TRANSCO MASTER AGREEMENT, TRANSCO ANCILLARY AGREEMENT AND TRANSCO PROJECT AGREEMENT. (VI) THE PROVISIONS OF SECTION TWENTY-EIGHT HUNDRED SEVENTY-NINE-A OF THIS CHAPTER SHALL BE APPLICABLE TO ANY TRANSCO MASTER AGREEMENT TO WHICH THE AUTHORITY OR SUBSIDIARY COMPANY IS A PARTY, BUT SHALL BE INAP- PLICABLE TO ANY TRANSCO ANCILLARY AGREEMENT OR TRANSCO PROJECT AGREEMENT THAT OTHERWISE SATISFIES THE REQUIREMENTS OF PARAGRAPH (A) OR (B) OF SUBDIVISION ONE OF SUCH SECTION PROVIDED THAT 1. A FINAL OR SUBSTANTIAL- LY NEGOTIATED FORM OF SUCH TRANSCO ANCILLARY AGREEMENT OR TRANSCO PROJECT AGREEMENT, AS THE CASE MAY BE, IS ANNEXED TO A TRANSCO MASTER AGREEMENT THAT HAS BECOME VALID AND ENFORCEABLE IN ACCORDANCE WITH THE PROVISIONS OF SECTION TWENTY-EIGHT HUNDRED SEVENTY-NINE-A OF THIS CHAP- TER, AND 2. IN THE CASE OF A TRANSCO PROJECT AGREEMENT, THE FINAL EXECUTED FORM OF SUCH TRANSCO PROJECT AGREEMENT IS LIMITED TO A TRANSCO PROJECT THAT WAS IDENTIFIED IN SUCH TRANSCO MASTER AGREEMENT. (VII) THE PROVISIONS OF TITLE FIVE-A OF ARTICLE NINE OF THIS CHAPTER SHALL BE INAPPLICABLE TO ANY DISPOSAL OF PROPERTY BY THE AUTHORITY OR SUBSIDIARY COMPANY THAT 1. IS OTHERWISE AUTHORIZED BY THIS TITLE, OR 2. IS MADE IN ACCORDANCE WITH A TRANSCO MASTER AGREEMENT THAT HAS BECOME VALID AND ENFORCEABLE IN ACCORDANCE WITH THE PROVISIONS OF SECTION TWEN- TY-EIGHT HUNDRED SEVENTY-NINE-A OF THIS CHAPTER. (VIII) THE PROVISIONS OF PARAGRAPH (D) OF SUBDIVISION ONE OF SECTION ONE THOUSAND TWENTY-S OF THIS TITLE AND SECTION THREE-B OF THE PUBLIC SERVICE LAW SHALL BE INAPPLICABLE TO THE RATES, SERVICES AND PRACTICES RELATED TO THE TRANSCO MASTER AGREEMENT AND ANY ACTIONS UNDERTAKEN BY THE AUTHORITY OR SUBSIDIARY CORPORATION IN ACCORDANCE WITH THE TRANSCO MASTER AGREEMENT. (IX) NO ACTS OR ACTIVITIES TAKEN OR PROPOSED TO BE TAKEN BY THE AUTHORITY OR A SUBSIDIARY COMPANY PURSUANT TO THE PROVISIONS OF THIS SUBDIVISION, INCLUDING THE EXECUTION OF A TRANSCO MASTER AGREEMENT, AND THE ISSUANCE OF BONDS, NOTES, OR OTHER OBLIGATIONS, SHALL BE DEEMED TO BE "ACTIONS" FOR THE PURPOSES OR WITHIN THE MEANING OF ARTICLE EIGHT OF THE ENVIRONMENTAL CONSERVATION LAW. (X) NOTWITHSTANDING THE PROVISIONS OF ANY OTHER LAW TO THE CONTRARY, THE AUTHORITY AND THE SUBSIDIARY COMPANY ONLY MAY PARTICIPATE IN A TRAN- SCO COMPANY THAT REPAIRS, REPLACES, REINFORCES, MODERNIZES AND EXPANDS
TRANSMISSION ASSETS, AND, ANY TRANSCO COMPANY IS PROHIBITED FROM FINANC- ING OR CONSTRUCTING NEW ELECTRIC GENERATING FACILITIES. S 7. Severability clause. If any clause, sentence, paragraph, subdivi- sion, section or part of this act shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder thereof, but shall be confined in its operation to the clause, sentence, paragraph, subdivision, section or part thereof directly involved in the controversy in which such judg- ment shall have been rendered. It is hereby declared to be the intent of the legislature that this act would have been enacted even if such invalid provisions had not been included therewith. S 8. This act shall take effect immediately.

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