S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                   556

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 7, 2009
                               ___________

Introduced  by  M.  of A. KAVANAGH, SCARBOROUGH, JOHN, GALEF, ROSENTHAL,
  JAFFEE, MILLMAN -- Multi-Sponsored by -- M.  of  A.  ALFANO,  BRADLEY,
  CLARK,  COLTON,  DESTITO,  DIAZ,  EDDINGTON, ERRIGO, GLICK, GOTTFRIED,
  GREENE,  HIKIND,  HOOPER,  V. LOPEZ,  MAYERSOHN,   McENENY,   PHEFFER,
  J. RIVERA,  ROBINSON,  SWEENEY,  THIELE,  TOWNS, WEISENBERG, WRIGHT --
  read once and referred to the Committee on Energy

AN ACT to amend the energy law,  the  public  authorities  law  and  the
  public service law, in relation to refuge facilities

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The legislature hereby  finds  that  there  is  a  need  to
protect the public from potential disruptions to the energy transmission
and  distribution  system,  whether caused by natural or man-made occur-
rences.  Such needs can be met through the creation of refuge facilities
in every locality in the state that can assure the public of  continuous
provision  of  electric,  heat  and  other necessary utility services in
times of disruption of the delivery of such services. Such refuge facil-
ities shall be either existing or new buildings which  have  energy  and
heat  producing equipment and which provide electricity and heat through
such on-site technologies and that such equipment is capable  of  opera-
tion  independent  of  the  receipt  of power or other services from the
local electric utility transmission and distribution system.
  The legislature also finds that, in order to promote  the  development
of  appropriate facilities and energy production equipment, it is appro-
priate for state agencies to provide financial assistance in the form of
low-interest or zero-interest loans, grants, performance  contracts  and
other  appropriate  financing  mechanisms.  In addition, the legislature
also finds that current technologies exist which could provide the  dual
purpose  of  reducing  energy  costs  for such facilities, and thus also
provide benefits to local taxpayers for lower public  facilities  costs.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

                                                           LBD01781-01-9

A. 556                              2

In  addition,  to  ensure  that such facilities do not create additional
cost burdens for local taxpayers, and in  consideration  of  the  public
safety  and  security  to be provided to the localities, such facilities
shall be exempt from any statutory or regulatory requirements for utili-
ty  standby rates, unreasonable interconnection charges, or exit fees or
other similar rates or requirements.
  S 2. The energy law is amended by adding a new article 22 to  read  as
follows:
                               ARTICLE 22
                            REFUGE FACILITIES
SECTION 22-101. DEFINITIONS.
        22-102. REFUGE FACILITIES, CREATION.
        22-103. UTILITY RATE TREATMENT.
        22-104. PERFORMANCE CONTRACTS.
  S 22-101. DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE:
  1.  "REFUGE  FACILITY"  SHALL  MEAN A FACILITY OWNED AND OPERATED BY A
MUNICIPALITY, AS DEFINED IN SECTION NINE HUNDRED EIGHTY OF  THE  GENERAL
MUNICIPAL  LAW,  OR  A  SCHOOL DISTRICT, AS PURSUANT TO TITLE TWO OF THE
EDUCATION LAW, INCLUDING BUT NOT LIMITED TO SCHOOL BUILDINGS,  MUNICIPAL
OFFICE BUILDINGS, COMMUNITY CENTERS, OR PUBLIC UNIVERSITIES, COLLEGES OR
COMMUNITY  COLLEGES,  AS DEFINED PURSUANT TO THE EDUCATION LAW, OR OTHER
APPROPRIATE STRUCTURE OR FACILITY THAT IS CAPABLE OF  PROVIDING  SHELTER
FOR  A  SIGNIFICANT  PORTION  OF  THE  LOCAL  POPULATION DURING TIMES OF
MAN-MADE OR NATURAL DISASTER.
  2. "COGENERATION TECHNOLOGY" SHALL MEAN ANY ONE OF THE  SEVERAL  TECH-
NOLOGIES  THAT CAN BE USED FOR COMBINED HEAT AND POWER APPLICATIONS, AND
WHICH CONSIST OF APPLICATIONS OF TECHNOLOGIES WHEREIN  WASTE  HEAT  FROM
ON-SITE ELECTRIC GENERATION PROCESS IS RECOVERED TO PROVIDE STEAM OR HOT
WATER  TO  MEET  ON-SITE NEEDS, SUCH AS HEATING AND/OR AIR CONDITIONING.
FOR PURPOSES OF THIS  ARTICLE,  COGENERATION  TECHNOLOGIES  MUST  ATTAIN
OVERALL SYSTEM EFFICIENCY OF SIXTY PERCENT, CONSIDERING BOTH THERMAL AND
ELECTRICAL PROCESSES TOGETHER.
  3.  "FINANCIAL  ASSISTANCE"  SHALL MEAN GRANTS, LOANS, INTEREST SUBSI-
DIES, LOAN GUARANTEES AND OTHER APPROPRIATE FUNDING MECHANISMS,  INCLUD-
ING  PERFORMANCE  CONTRACTING,  CONSIDERING  THE  CIRCUMSTANCES  OF  THE
PROJECT.   WITH  THE  EXCEPTION  OF  GRANTS,  ANY  FINANCIAL  ASSISTANCE
PROVIDED  ACCORDING  TO  THIS SUBDIVISION SHALL BE REPAID TO THE ISSUING
AUTHORITY, OVER A PERIOD NOT TO EXCEED TEN YEARS, WITH SAVINGS IN ENERGY
COSTS AND RELATED COSTS WHICH ACCRUE TO THE FACILITY OWNER AS  A  RESULT
OF INSTALLING AND OPERATING SUCH COGENERATION EQUIPMENT.
  S 22-102. REFUGE FACILITIES, CREATION. 1. FOR PURPOSES OF IMPLEMENTING
THE  PROVISIONS  OF  THIS  ARTICLE, EVERY COUNTY, EXCEPT THOSE CONTAINED
WITHIN THE CITY OF NEW YORK, AND THE CITY OF NEW YORK SHALL INITIATE AND
IMPLEMENT A PROGRAM TO IDENTIFY  AND  CREATE  FACILITIES  WHICH  CAN  BE
UTILIZED  AS  REFUGE FACILITIES. SUCH REFUGE FACILITIES SHALL BE IDENTI-
FIED AND INCLUDED IN ANY AND ALL LOCAL DISASTER PREPAREDNESS PLANS TO BE
COMPLETED AND IMPLEMENTED ACCORDING TO SECTION TWENTY-THREE OF THE EXEC-
UTIVE LAW. COUNTY EMERGENCY MANAGEMENT OFFICIALS AND  THE  CITY  OF  NEW
YORK  EMERGENCY  MANAGEMENT  OFFICIAL  SHALL  COOPERATE  AND  COORDINATE
EFFORTS TO IDENTIFY AND ESTABLISH REFUGE FACILITIES WITH THE DIRECTOR OF
THE STATE EMERGENCY MANAGEMENT  OFFICE  AND  THE  DISASTER  PREPAREDNESS
COMMISSION.  TO  THE  EXTENT  POSSIBLE  AND  FEASIBLE,  COUNTY EMERGENCY
MANAGEMENT OFFICIALS AND THE CITY OF NEW YORK EMERGENCY MANAGEMENT OFFI-
CIAL SHALL INTEGRATE ANY SUCH ACTIVITIES WITH THOSE OF ANY AND ALL STATE
DISASTER PREPAREDNESS PLANS AS REQUIRED PURSUANT TO  SECTION  TWENTY-TWO
OF THE EXECUTIVE LAW.

A. 556                              3

  2.  COUNTY  EMERGENCY  MANAGEMENT OFFICIALS,   WORKING IN COORDINATION
WITH APPROPRIATE STATE, CITY, TOWN AND VILLAGE OFFICIALS, SHALL IDENTIFY
AN APPROPRIATE NUMBER OF REFUGE FACILITIES  TO  BE  LOCATED  WITHIN  THE
COUNTY,  WITH  RESPECT TO THE POPULATION AND OTHER CONSIDERATIONS NECES-
SARY  TO  PROVIDE  ADEQUATE RELIEF IN TIMES OF AN EMERGENCY. THE CITY OF
NEW YORK EMERGENCY MANAGEMENT OFFICIAL SHALL WORK IN  COORDINATION  WITH
ALL  APPROPRIATE  STATE  OFFICIALS  TO IDENTIFY AN APPROPRIATE NUMBER OF
REFUGE FACILITIES TO BE LOCATED WITHIN THAT CITY, WITH  RESPECT  TO  THE
POPULATION AND OTHER CONSIDERATIONS NECESSARY TO PROVIDE ADEQUATE RELIEF
IN TIMES OF AN EMERGENCY.
  3.  EACH REFUGE FACILITY SHALL BE REGISTERED WITH THE COUNTY EMERGENCY
MANAGEMENT OFFICE IN THE COUNTY IN  WHICH  SUCH  FACILITY  IS  SITUATED,
EXCEPT  IN  THE  CITY  OF NEW YORK WHEREIN THE CITY EMERGENCY MANAGEMENT
OFFICE SHALL MAINTAIN SUCH REGISTRATION. THE REGISTRIES SHALL BE UPDATED
ANNUALLY. SUCH REGISTRIES SHALL ALSO BE PROVIDED TO THE STATE  EMERGENCY
MANAGEMENT OFFICE.
  S  22-103. UTILITY RATE TREATMENT. NO ELECTRIC CORPORATION, AS DEFINED
BY SUBDIVISION THIRTEEN OF SECTION TWO OF THE PUBLIC SERVICE LAW,  SHALL
ESTABLISH  OR  MODIFY ANY TARIFFS WITH RESPECT TO REFUGE FACILITIES THAT
INSTALL COGENERATION EQUIPMENT.  ANY REFUGE FACILITY THAT IS  REGISTERED
WITH  THE STATE EMERGENCY MANAGEMENT OFFICE SHALL FURTHER BE EXEMPT FROM
PAYMENT OF ANY EXIT FEES OR ANY LOST REVENUES RESULTING FROM THE INSTAL-
LATION AND OPERATION OF COGENERATION EQUIPMENT AT THE  REFUGE  FACILITY.
TO THE EXTENT THAT THE REFUGE FACILITY REQUIRES INTERCONNECTION WITH THE
LOCAL  ELECTRIC  UTILITY SYSTEM, NO ELECTRIC CORPORATION SHALL ESTABLISH
OR MODIFY ANY TARIFF TO ESTABLISH A STANDBY RATE THAT DOES NOT TAKE INTO
ACCOUNT THE ACTUAL COSTS AND  BENEFITS  OF  THE  DISTRIBUTED  GENERATION
RESOURCE.  SUCH  STANDBY  RATE  SHALL  CONSIDER  THE  RELIABILITY OF THE
ON-SITE GENERATION, AS DETERMINED  BY  THE  FREQUENCY  AND  DURATION  OF
OUTAGES,  SO  THAT  CUSTOMERS  WITH MORE RELIABLE ON-SITE GENERATION AND
THOSE THAT REDUCE PEAK DEMAND PAY A LOWER COST-BASED RATE. TO THE EXTENT
THE INSTALLATION OF ANY  COGENERATION  EQUIPMENT  RESULTS  IN  INTERCON-
NECTION FEES, AN ELECTRIC CORPORATION SHALL ONLY COLLECT INTERCONNECTION
FEES THAT ARE REASONABLE.
  S  22-104.  PERFORMANCE  CONTRACTS.  FOR PURPOSES OF IMPLEMENTING THIS
ARTICLE, THE PROVISIONS OF ARTICLE NINE OF THIS CHAPTER SHALL BE  APPLI-
CABLE FOR THOSE PROJECTS FOR WHICH PERFORMANCE CONTRACTING IS A PREFERA-
BLE METHOD FOR THE FINANCING, INSTALLATION AND OPERATION OF COGENERATION
TECHNOLOGY EQUIPMENT.
  S 3. Section 1005 of the public authorities law is amended by adding a
new subdivision 16 to read as follows:
  16.  TO PROVIDE FINANCIAL ASSISTANCE FOR THE INSTALLATION OF COGENERA-
TION TECHNOLOGIES FOR THE PURPOSE OF  CREATING  AND  MAINTAINING  REFUGE
FACILITIES PURSUANT TO ARTICLE TWENTY-TWO OF THE ENERGY LAW.
  A.    THE  AUTHORITY MAY MAKE AVAILABLE FINANCIAL ASSISTANCE; PROVIDED
THAT NO COSTS ASSOCIATED WITH SUCH FINANCIAL ASSISTANCE SHALL BE CHARGED
TO THE AUTHORITY'S CUSTOMERS. SUCH FUNDS SHALL BE USED FOR THE  DEVELOP-
MENT OF REFUGE FACILITIES AS IDENTIFIED AMONG THE AUTHORITY'S CUSTOMERS.
  B.  THE AUTHORITY MAY SOLICIT APPLICATIONS FOR FINANCIAL ASSISTANCE BY
PUBLIC NOTICE. SUCH NOTICE SHALL BE IN THE FORM OF ADVERTISEMENTS, PRESS
RELEASES, AND BY SUCH OTHER MEANS AS THE AUTHORITY FINDS APPROPRIATE.
  C.  THE  AUTHORITY MAY PROVIDE FINANCIAL ASSISTANCE BY ENTERING INTO A
CONTRACT WITH A CONTRACTOR FOR THE COGENERATION SERVICES. THE  AUTHORITY
SHALL  EVALUATE  APPLICATIONS  FOR  FINANCIAL  ASSISTANCE BASED UPON THE
AMOUNT OF POWER SAVED AS A RESULT OF THE INSTALLATION OF  THE  COGENERA-

A. 556                              4

TION EQUIPMENT AND THE SAVINGS IN ENERGY COSTS RELATIVE TO THE AMOUNT OF
FINANCIAL ASSISTANCE REQUIRED.
  S  4.  Sections 1020-gg, 1020-hh and 1020-ii of the public authorities
law, as renumbered by chapter 234 of the laws of 2004,   are  renumbered
sections 1020-hh, 1020-ii and 1020-jj and a new section 1020-gg is added
to read as follows:
  S  1020-GG. REFUGE FACILITIES; COMPLIANCE. 1. THE AUTHORITY MAY ASSIST
WITH THE IMPLEMENTATION OF THE REFUGE FACILITIES, AS STATED  IN  ARTICLE
TWENTY-TWO OF THE ENERGY LAW, WITHIN THE SERVICE TERRITORY.
  2.  THE  AUTHORITY  MAY  MAKE AVAILABLE FINANCIAL ASSISTANCE; PROVIDED
THAT NO COSTS ASSOCIATED WITH SUCH FINANCIAL ASSISTANCE SHALL BE CHARGED
TO THE AUTHORITY'S CUSTOMERS. SUCH FUNDS SHALL BE USED FOR THE  DEVELOP-
MENT OF REFUGE FACILITIES WITHIN THE AUTHORITY'S SERVICE TERRITORY.
  3.  THE AUTHORITY MAY SOLICIT APPLICATIONS FOR FINANCIAL ASSISTANCE BY
PUBLIC NOTICE. SUCH NOTICE SHALL BE IN THE FORM OF ADVERTISEMENT,  PRESS
RELEASES, AND BY SUCH OTHER MEANS AS THE AUTHORITY FINDS APPROPRIATE.
  4.  THE  AUTHORITY MAY PROVIDE FINANCIAL ASSISTANCE BY ENTERING INTO A
CONTRACT WITH A CONTRACTOR FOR THE COGENERATION SERVICES. THE  AUTHORITY
SHALL  EVALUATE  APPLICATIONS  FOR  FINANCIAL  ASSISTANCE BASED UPON THE
AMOUNT OF POWER SAVED AS A RESULT OF THE INSTALLATION OF  THE  COGENERA-
TION EQUIPMENT AND THE SAVINGS IN ENERGY COSTS RELATIVE TO THE AMOUNT OF
FINANCIAL ASSISTANCE REQUIRED.
  S 5. Section 1854 of the public authorities law is amended by adding a
new subdivision 18 to read as follows:
  18.  TO PROVIDE FINANCIAL ASSISTANCE FOR THE INSTALLATION OF COGENERA-
TION TECHNOLOGIES FOR THE PURPOSE OF  CREATING  AND  MAINTAINING  REFUGE
FACILITIES  PURSUANT  TO  ARTICLE  TWENTY-TWO  OF  THE ENERGY LAW.   THE
AUTHORITY MAY SOLICIT APPLICATIONS FOR FINANCIAL  ASSISTANCE  BY  PUBLIC
NOTICE,  WHICH  PUBLIC  NOTICE  SHALL  BE IN THE FORM OF ADVERTISEMENTS,
PRESS RELEASES, AND BY SUCH OTHER MEANS AS THE AUTHORITY FINDS APPROPRI-
ATE. THE AUTHORITY MAY PROVIDE FINANCIAL ASSISTANCE BY ENTERING  INTO  A
CONTRACT  WITH A CONTRACTOR FOR THE COGENERATION SERVICES. THE AUTHORITY
SHALL EVALUATE APPLICATIONS FOR  FINANCIAL  ASSISTANCE  BASED  UPON  THE
AMOUNT  OF  POWER SAVED AS A RESULT OF THE INSTALLATION OF THE COGENERA-
TION EQUIPMENT AND THE SAVINGS IN ENERGY COSTS RELATIVE TO THE AMOUNT OF
FINANCIAL ASSISTANCE REQUIRED.  WHERE  APPROPRIATE,  THE  AUTHORITY  MAY
ACCESS FUNDS RECEIVED FROM UTILITY ASSESSMENTS FOR ENERGY EFFICIENCY AND
OTHER RESEARCH AND DEVELOPMENT ACTIVITIES IN ORDER TO PROVIDE GRANTS FOR
PROJECTS  REQUIRING  ADDITIONAL FINANCIAL ASSISTANCE, AND WHERE PERFORM-
ANCE CONTRACTING IS NOT AVAILABLE.  THE  AUTHORITY  MAY  MAKE  AVAILABLE
FINANCIAL  ASSISTANCE,  WHICH  SHALL  BE  MADE AVAILABLE FOR PROJECTS IN
UTILITY SERVICE TERRITORIES WHEREIN THE  RATEPAYERS  OF  SUCH  UTILITIES
CONTRIBUTE  TO  SUCH  ASSESSMENT  FOR ENERGY EFFICIENCY AND RESEARCH AND
DEVELOPMENT.
  S 6. Section 66 of the public service law is amended by adding  a  new
subdivision 29 to read as follows:
  29.  NOTWITHSTANDING  ANY  OTHER  PROVISION OF LAW TO THE CONTRARY, NO
REFUGE FACILITY THAT IS IDENTIFIED AND IMPLEMENTED  IN  ACCORDANCE  WITH
ARTICLE  TWENTY-TWO OF THE ENERGY LAW SHALL BE SUBJECT TO ANY TRANSITION
COSTS, EXIT FEES, OR ADDITIONAL PAYMENTS, SUCH AS STANDBY RATES, RELATED
TO THE DISCONTINUANCE OF SERVICES FROM ITS  FORMER  SUPPLIER  OF  RETAIL
DISTRIBUTION SERVICE WHEN SUCH REFUGE FACILITY RECEIVES ELECTRIC SERVICE
IN  WHOLE  OR  IN  PART  FROM  A  SOURCE OF ELECTRICITY ACCORDING TO THE
PROVISIONS OF ARTICLE TWENTY-TWO OF  THE  ENERGY  LAW  AND  GENERATES  A
SUBSTANTIAL  PORTION  OF  ITS  OWN POWER AND DISTRIBUTES THAT POWER IN A

A. 556                              5

MANNER WHICH BYPASSES THE  RETAIL  DISTRIBUTION  SYSTEM  OF  ITS  FORMER
SUPPLIER.
  S  7.  The  New  York  state energy research and development authority
shall assess the feasibility, costs, and benefits of installing  renewa-
ble  energy technologies, including cogeneration technology on the prem-
ises of refuge facilities as established under article 22 of the  energy
law.  The  authority shall report back to the legislature with its find-
ings within 6 months of the effective date of this act.
  S 8. This act shall take effect immediately.