Bill S7789-2011

Directs NYS power authority to release requests for proposals on certain natural gas powered generating facilities in New York city

Directs NYS power authority to release requests for proposals on certain natural gas powered generating facilities in New York city.



  • Jun 21, 2012: referred to corporations, authorities and commissions
  • Jun 21, 2012: PASSED SENATE
  • Jun 21, 2012: ORDERED TO THIRD READING CAL.1523
  • Jun 18, 2012: REFERRED TO RULES




VOTE: COMMITTEE VOTE: - Rules - Jun 21, 2012
Ayes (18): Skelos, Alesi, Farley, Hannon, Johnson, Larkin, LaValle, Libous, Marcellino, Maziarz, Nozzolio, Saland, Seward, Sampson, Breslin, Hassell-Thompson, Parker, Smith
Ayes W/R (4): Dilan, Duane, Montgomery, Stewart-Cousins
Nays (2): Krueger, Perkins
Excused (1): Fuschillo



TITLE OF BILL: An act directing the power authority of the state of New York to release requests for proposals on certain natural gas powered generating facilities in and around New York city.

PURPOSE: To authorize the sale of certain assets of the New York Power Authority (NYPA) in order to establish a fund to encourage repowering of electric generating facilities.

SUMMARY OF PROVISIONS: Section one of the bill directs NYPA to issue requests for proposals (RFP) for the purchase of up to ten of NYPA's gas turbine electric generating facilities located in and around New York City.

Section 1 also requires NYPA to deposit proceeds from the sale of such facilities into a special fund for the purposes of (i) incentivizing the repowering of certain electric generating facilities and (ii) funding programs to assist municipal corporations that have been adversely affected by the loss of property tax revenues and/or revenues from payments in lieu of tax agreements.

Section 2 is the effective date.

JUSTIFICATION: Many power plants in NYS are contemplating repowering in order to improve their competitive position in the marketplace. These power plants are prevented from taking steps to repower because of the high costs associated with doing so. By establishing a fund specifically for this purpose, power plants will be incented to invest in re-powering which will lead to improved emissions profiles and long term economic viability.

In addition, these power plants often represent a significant portion of the tax base for the municipality where they are located. Loss of such tax base will be devastating for these communities. In the event that power plants close or downsize, funds should be made available to these municipalities as they transition to becoming less reliant on the power plant taxes. To that end, this bill also provides for funding to be available to assist these communities in these difficult circumstances.

Another substantial benefit of this legislation is the transition of the identified older gas plants from public ownership to private ownership. The sale of these small, natural gas-powered facilities in an around New York City will bring in significant revenue to help during these tough economic times, while also securing future tax revenues to benefit the state for years to come. Furthermore, operating costs associated with these facilities no longer will be a burden on NYPA, as all costs and risks associated with owning and operating the facilities would be on the shoulders of private companies.

It would not be the first time that NYPA sold some of its assets to the private sector. As it is likely that the private sector would be

interested in NYPA's small generation facilities as well. While it is impossible to predict potential offers, it should be noted that, in 2008, TransCanada Corporation purchased the Ravenswood Generating Facility in Queens from National Grid for $2.8 billion---a price that exceeded expectations and demonstrates the level of interest that the private sector takes in worthwhile assets.



EFFECTIVE DATE: Immediately.


STATE OF NEW YORK ________________________________________________________________________ 7789 IN SENATE June 18, 2012 ___________
Introduced by Sen. MAZIARZ -- read twice and ordered printed, and when printed to be committed to the Committee on Rules AN ACT directing the power authority of the state of New York to release requests for proposals on certain natural gas powered generating facilities in and around New York city THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. (a) The power authority of the state of New York shall within ninety days of the effective date of this act, issue a request for the proposals to purchase from such authority one or more of the ten gas turbine electric generating facilities with a nameplate capacity of less than eighty megawatts each, owned by such authority as of the effective date of this act and located in and around the city of New York. Such request for proposals to sell such generators shall be put out for bid for a maximum of ninety days and shall include the following sites and generation facilities: (1) Two units at Harlem River Yard Plant, located in the Harlem River Yards, at E. 132nd Street, Bronx, New York 10454; (2) Two units at Vernon Boulevard, located at 41-98, 42-02, 42-16 Vernon Boulevard, Long Island City, Queens, New York 11101; (3) Two units at the Hell Gate Plant, located at Locust Avenue, E. 132nd Street to E. 134th Street, Bronx, New York 10454; (4) Two units at the Windsor Terrace Power Plant, located at 3rd Avenue and 23rd Street, Brooklyn, New York 11232; (5) One unit at Pouch Terminal; located at 1 Edgewater Street, Staten Island, New York 10305; and (6) One unit at North First Avenue and River Street, located at 47-79 River Street, Brooklyn, New York 11211. (b) The authority shall issue such requests to determine, among other things, the likely value to New York state for the sale of such genera- tors. The authority shall, within thirty days of the end of the solic- itation period, report on the range of solicited bids to the governor, the temporary president of the senate and the speaker of the assembly, subject to all appropriate and applicable confidentiality requirements
with respect to individual bids and information contained therein. The authority shall commence actions, as the authority's board of trustees determines appropriate and necessary, to effectuate the sale of such facilities. (c) The authority is authorized and directed to deposit the proceeds of the sale of such generators into a special account to be administered by the New York Energy Research and Development Authority for the purposes of (i) incentivizing the repowering of load bearing electric generating facilities that currently meet or exceed the minimum stand- ards established in the final rule of the proposed National Emission Standards for Hazardous Air Pollutants provided that the eligible plants agree to repower such facility and construct new or retrofit existing electric generators, and (ii) for other associated upgrades, including but not limited to the construction or improvement of energy related infrastructure. To the extent practicable, funds shall also be made available to provide assistance to municipal corporations as defined in section 102 of the real property tax law, that have been substantially adversely impacted by the loss of property tax revenues or the loss of revenues from payments in lieu of taxes due to the closing of a major electric generating facility. S 2. This act shall take effect immediately.


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