Establishes the capacity zone task force.
TITLE OF BILL: An act to establish the "capacity zone" task force and providing for the repeal of such provisions upon expiration thereof
PURPOSE: Establishes the capacity zone task force to develop and implement a conservation plan for Westchester, NYC and LI to alleviate the need for the new capacity zone
SUMMARY OF PROVISIONS:
Section 1 establishes the capacity zone task force and outlines its composition
Section 2 details the role of the task force and that it includes, but is not limited to, creating and implementing a conservation plan to reduce electricity demand in Nassau, Suffolk, Westchester, and the City of New York
Section 3 states that the funding for the capacity zone task force and implementation of the plan will come from the system benefits charge
Section 4 sets into statute that the task force must complete the conservation plan within ninety days of the effective date and the implementation of the plan shall begin one hundred eighty days after the effective date and be completed within one and a half years of the effective date
Section 5 sets an immediate effective date and sets an expiration for the task force of three years from the effective date
JUSTIFICATION: After failing to thoroughly study the development and implementation of a comprehensive statewide conservation program, FERC has allowed NYSIO to create a new capacity zone in southeastern New York that would mandate local utility providers to purchase energy resources from producers within a specific geographic region. The new capacity zone has the potential to cost residential, commercial, and industrial customers in the lower Hudson Valley up to $350 million in additional electric bills. If unchecked, the new capacity zone will drive families and businesses out of the state due to unbearable costs.
One of the biggest failures of the new capacity zone is the lack of consideration for energy conservation. The justification for the capacity zone is the 894 megawatts (MW) bottleneck in the electric transmission system located north of the Mid-Hudson Valley that constrains electric supply to Westchester and greater New York City area; comes from a transmission bottleneck of in New York City and Long Island. An effective and sustainable energy conservation plan that saves 1,200 megawatts or more will eliminate the need for new energy resources to cover this impending shortage. Other states such as California, they have faced this challenge and responded through comprehensive conservation and efficiency efforts. If New York State took similar measures, our savings could be from 1,100 to 2,100 megawatts of generating capacity. With newer, more efficient technologies, New York would certainly be able to eliminate the 894 MW
bottleneck through conservation without the need for a new capacity zone.
The capacity zone task force has defined goals and deadlines for real action to provide a comprehensive conservation plan that will prevent utility bill increases for many New Yorkers. The state must work with Nassau, Suffolk, Westchester, and the City of New York to reduce energy consumption instead of raising the cost of energy for residents of the Hudson Valley and Upstate New York.
LEGISLATIVE HISTORY: This is a new bill.
EFFECTIVE DATE: This act shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 7507 IN SENATE May 15, 2014 ___________Introduced by Sen. GIPSON -- read twice and ordered printed, and when printed to be committed to the Committee on Energy and Telecommuni- cations AN ACT to establish the "capacity zone" task force and providing for the repeal of such provisions upon expiration thereof THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. There is hereby established the capacity zone task force consisting of the chairman of the public service commission, the presi- dent of the New York state energy and research development authority, the president of PSEG Long Island, the president of the New York power authority, the commissioner of environmental conservation, the commis- sioner of economic development, two members of the senate whose districts sit within the new capacity zone as established by the federal energy regulatory commission, one who shall be appointed by the tempo- rary president of the senate and one who shall be appointed by the lead- er of the minority conference, and two members of the assembly whose districts sit within the new capacity zone as established by the federal energy regulatory commission, one who shall be appointed by the speaker of the assembly and one who shall be appointed by the minority leader, and a designee of the governor. Members of the task force may designate an executive staff representative to participate on the task force on their behalf. S 2. The role of the task force includes, but is not limited to, creating and implementing a conservation plan to reduce electricity demand in the counties of Nassau, Suffolk, and Westchester and the city of New York by twelve hundred megawatts, thereby alleviating the need for the new capacity zone. S 3. The task force and the implementation of the task force's plan shall be funded by the system benefits charge. S 4. The task force shall complete the conservation plan within ninety days of the effective date of this section and thereafter present the plan to the governor, temporary president of the senate and the speaker of the assembly. The task force shall begin implementation of the planEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD15226-02-4 S. 7507 2
within one hundred eighty days of the effective date of this section and complete implementation of the plan within one and a half years of the effective date of this section. S 5. This act shall take effect immediately and shall expire and be deemed repealed three years after such date.