Bill Text: NY A05585 | 2009-2010 | General Assembly | Introduced
Bill Title: An act to amend the public service law, in relation to establishing the natural gas infrastructure act; and providing for the repeal of such provisions upon expiration thereof
Spectrum: Partisan Bill (Republican 19-0)
Status: (Introduced - Dead) 2010-01-06 - referred to energy [A05585 Detail]
Download: New_York-2009-A05585-Introduced.html
S T A T E O F N E W Y O R K
________________________________________________________________________
5585
2009-2010 Regular Sessions
I N A S S E M B L Y
February 13, 2009
___________
Introduced by M. of A. OAKS, BARRA, CROUCH, FINCH, WALKER -- Multi-Spon-
sored by -- M. of A. ALFANO, BACALLES, BARCLAY, BUTLER, DUPREY, ERRI-
GO, GIGLIO, JORDAN, KOLB, McDONOUGH, MILLER, RABBITT, SAYWARD, SCOZZA-
FAVA, TOWNSEND -- read once and referred to the Committee on Energy
AN ACT to amend the public service law, in relation to establishing the
natural gas infrastructure act; 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:
1 Section 1. Legislative intent. The legislature hereby recognizes that
2 in order to retain and create jobs in rural communities, the availabili-
3 ty of natural gas distribution systems is often critical to certain
4 manufacturers and other energy users. The legislature further recognizes
5 that under current law, the public service commission will not approve
6 projects submitted by gas utilities if the project costs exceed antic-
7 ipated revenues. In order to make such projects viable, the natural gas
8 infrastructure grant fund established by this act would provide up to
9 fifty percent of the total costs of an eligible project in the form of a
10 grant to a requesting county industrial development agency, or agencies
11 if the project crossed county lines. The agency would own those facili-
12 ties paid for by this fund and would provide local input and oversight
13 in addition to the franchise powers already given to municipalities. The
14 franchised natural gas local distribution company would operate those
15 sections of the distribution system owned by the industrial development
16 agency.
17 S 2. Short title. This act shall be known and may be cited as the
18 "natural gas infrastructure act".
19 S 3. The public service law is amended by adding a new article 12 to
20 read as follows:
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04333-01-9
A. 5585 2
1 ARTICLE 12
2 NATURAL GAS INFRASTRUCTURE ACT
3 SECTION 236. DEFINITIONS.
4 237. CREATION OF THE NATURAL GAS INFRASTRUCTURE GRANT FUND.
5 238. DUTIES AND RESPONSIBILITIES OF THE DEPARTMENT IN RESPECT TO
6 THE NATURAL GAS INFRASTRUCTURE GRANT FUND.
7 239. CRITERIA FOR SELECTION OF AND FINANCIAL ASSISTANCE TO
8 ELIGIBLE PROJECTS.
9 240. GRANT AGREEMENTS.
10 241. INSPECTION AND CERTIFICATION.
11 242. NONCOMPLIANCE; NOTIFICATION; APPLICATION FOR SERVICE.
12 S 236. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING TERMS SHALL
13 HAVE THE FOLLOWING MEANINGS:
14 1. "CONSTRUCTION" MEANS THE ERECTION, BUILDING, ACQUISITION, ALTER-
15 ATION, RECONSTRUCTION, IMPROVEMENT, ENLARGEMENT OR EXTENSION OF AN
16 ELIGIBLE PROJECT; THE INSPECTION AND SUPERVISION THEREOF; AND THE ENGI-
17 NEERING, ARCHITECTURAL, LEGAL, FISCAL, AND ECONOMIC INVESTIGATIONS AND
18 STUDIES, SURVEYS, DESIGNS, PLANS, WORKING DRAWINGS, SPECIFICATIONS,
19 PROCEDURES, AND OTHER ACTIONS NECESSARY THERETO.
20 2. "ELIGIBLE PROJECT" MEANS A PROJECT INTENDED TO EXTEND NATURAL GAS
21 SUPPLY FACILITIES TO RURAL AREAS FOR ECONOMIC DEVELOPMENT PURPOSES BY
22 THE CONSTRUCTION OF NATURAL GAS DISTRIBUTION FACILITIES TO ONE OR MORE
23 IDENTIFIED USERS WHICH SHALL INCLUDE, BUT NOT BE LIMITED TO, MAIN LINE,
24 SERVICE LINE, AND APPURTENANT FACILITIES WITH A PROPOSAL JOINTLY SUBMIT-
25 TED BY THE COUNTY INDUSTRIAL DEVELOPMENT AGENCY AND LOCAL DISTRIBUTION
26 COMPANY TO THE DEPARTMENT IN A MANNER PRESCRIBED BY THE DEPARTMENT.
27 SUCH ELIGIBLE PROJECTS WILL BE TO EXTEND GAS TO TOWNS WHOLLY MORE THAN
28 FIFTEEN MILES FROM THE BOUNDARY OF A CITY WITH A POPULATION OF FIFTY
29 THOUSAND OR MORE PEOPLE, AND WHOLLY MORE THAN TWENTY-FIVE MILES FROM THE
30 BOUNDARY OF A CITY WITH A POPULATION OF TWO HUNDRED THOUSAND OR MORE
31 PEOPLE; AND THE POPULATION DENSITY OF SUCH A TOWN, INCLUDING ITS MUNICI-
32 PAL SUBDIVISIONS, CAN BE NO MORE THAN FOUR HUNDRED FIFTY PEOPLE PER
33 SQUARE MILE. A PROJECT WILL NOT BE CONSIDERED AN ELIGIBLE PROJECT IF ITS
34 COMPLETION WOULD RESULT IN A BYPASS OR RISK OF BYPASS TO ANY LOCAL
35 DISTRIBUTION COMPANY. A BYPASS OR RISK OF BYPASS WILL EXIST IF THE
36 COMPLETED PROJECT DISPLACES ANY OTHER LOCAL DISTRIBUTION COMPANY'S GAS
37 LOAD OR GAS LOAD OPPORTUNITY, UNLESS THAT LOCAL DISTRIBUTION COMPANY
38 CHOOSES NOT TO EXERCISE SUCH GAS LOAD OPPORTUNITY.
39 3. "ELIGIBLE COSTS" MEANS THAT PORTION OF AN ELIGIBLE PROJECT THAT MAY
40 QUALIFY FOR MONEYS FROM THE FUND. IN NO EVENT MAY ELIGIBLE COSTS EXCEED
41 FIFTY PERCENT OF THE TOTAL COSTS OF THE ELIGIBLE PROJECT.
42 4. "GRANT AGREEMENT" MEANS AN AGREEMENT BETWEEN THE DEPARTMENT AND ONE
43 OR MORE RECIPIENTS MEETING THE REQUIREMENTS OF THIS ARTICLE.
44 5. "FUND" MEANS THE NATURAL GAS INFRASTRUCTURE GRANT FUND ESTABLISHED
45 PURSUANT TO THIS ARTICLE.
46 6. "LOCAL DISTRIBUTION COMPANY" MEANS A FRANCHISED NATURAL GAS UTILITY
47 FULLY SUBJECT TO THE JURISDICTION AND SUPERVISION OF THE DEPARTMENT IN
48 ALL RESPECTS AND HAVING A TARIFF PUBLICLY FILED AND APPROVED BY THE
49 COMMISSION PRIOR TO THE DISBURSEMENT OF ANY MONIES.
50 7. "RECIPIENT" MEANS A COUNTY INDUSTRIAL DEVELOPMENT AGENCY, IN
51 ACCORDANCE WITH ARTICLE EIGHTEEN-A OF THE GENERAL MUNICIPAL LAW, WHICH
52 IS EMPOWERED TO CONSTRUCT A PORTION OF THE ELIGIBLE PROJECT, OR ANY TWO
53 OR MORE OF THE FOREGOING WHICH ARE ACTING JOINTLY AND WITH THE PRIOR
54 CONSENT OF THE LOCAL DISTRIBUTION COMPANY HOLDING A FRANCHISE IN THE
55 AREA IN WHICH THE PROPOSED PROJECT IS LOCATED.
56 8. "COMMISSION" MEANS THE PUBLIC SERVICE COMMISSION.
A. 5585 3
1 9. "DEPARTMENT" MEANS THE DEPARTMENT OF PUBLIC SERVICE.
2 10. "FRANCHISE" MEANS A GAS FRANCHISE IN ACCORDANCE WITH SECTION
3 SIXTY-EIGHT OF THIS CHAPTER OR, IN THE ABSENCE OF AN EXPRESS FRANCHISE,
4 THE CURRENT AND HISTORIC RIGHT AND OBLIGATION TO SUPPLY GAS SERVICE IN
5 THE PROJECT AREA.
6 11. "PROJECT FACILITIES" SHALL MEAN, BUT NOT BE LIMITED TO, ANY MAIN
7 LINE, SERVICE LINE AND APPURTENANT FACILITIES CONSTRUCTED PURSUANT TO
8 THE AUTHORITY OF THIS ARTICLE.
9 S 237. CREATION OF THE NATURAL GAS INFRASTRUCTURE GRANT FUND. 1.
10 THERE IS HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE DEPARTMENT AND
11 THE STATE COMPTROLLER A SPECIAL FUND TO BE KNOWN AS THE "NATURAL GAS
12 INFRASTRUCTURE GRANT FUND". THE STATE COMPTROLLER MAY ESTABLISH WITHIN
13 THE NATURAL GAS INFRASTRUCTURE GRANT FUND ADDITIONAL ACCOUNTS OR SUBAC-
14 COUNTS AND SPECIFY ANY CONDITIONS APPLICABLE TO THE TRANSFER OF MONEYS
15 BETWEEN SUCH ACCOUNTS OR SUBACCOUNTS. WITH RESPECT TO EACH ELIGIBLE
16 PROJECT, THE DEPARTMENT SHALL ESTABLISH AND MAINTAIN A RECORD OF THE
17 FUNDS ALLOCATED TO EACH PROJECT.
18 2. SUCH FUND SHALL CONSIST OF MONEYS APPROPRIATED BY THE LEGISLATURE
19 FOR THE PURPOSE OF SUCH FUND OR OTHERWISE TRANSFERRED BY LAW, AS WELL AS
20 INVESTMENT EARNINGS ON AMOUNTS IN SUCH FUND. MONEYS SHALL BE PAID OUT
21 OF THE ACCOUNT ON THE AUDIT AND WARRANT OF THE STATE COMPTROLLER ON
22 VOUCHERS CERTIFIED OR APPROVED BY THE COMMISSION.
23 3. MONEYS IN THE NATURAL GAS INFRASTRUCTURE GRANT FUND SHALL BE
24 APPLIED OR DISTRIBUTED BY THE DEPARTMENT IN ACCORDANCE WITH THIS ARTICLE
25 AND THE APPLICABLE PROVISIONS OF THIS CHAPTER TO PROVIDE FINANCIAL
26 ASSISTANCE TO RECIPIENTS FOR ACQUISITION AND CONSTRUCTION OF ELIGIBLE
27 PROJECTS AND TO PROVIDE FOR THE COSTS OF THE ADMINISTRATION AND MANAGE-
28 MENT OF THE FUND.
29 S 238. DUTIES AND RESPONSIBILITIES OF THE DEPARTMENT IN RESPECT TO THE
30 NATURAL GAS INFRASTRUCTURE GRANT FUND. THE DEPARTMENT SHALL UNDERTAKE
31 AND PROVIDE ASSISTANCE IN SUPPORT OF THE PROGRAM TO MAKE FINANCIAL
32 ASSISTANCE AVAILABLE TO RECIPIENTS TO ENCOURAGE AND SUPPORT THE
33 CONSTRUCTION OF NATURAL GAS DISTRIBUTION FACILITIES IN ACCORDANCE WITH
34 THE PROVISIONS OF THIS ARTICLE OR ANY OTHER PROVISION OF LAW, AS DETER-
35 MINED BY THE COMMISSION.
36 S 239. CRITERIA FOR SELECTION OF AND FINANCIAL ASSISTANCE TO ELIGIBLE
37 PROJECTS. 1. THE DEPARTMENT SHALL ESTABLISH PROCEDURES AND PROMULGATE
38 REGULATIONS, WHICH SHALL INCLUDE, BUT SHALL NOT BE LIMITED TO, CRITERIA
39 AND STANDARDS FOR SELECTION OF ELIGIBLE PROJECTS; DETERMINING THE AMOUNT
40 OF FINANCIAL ASSISTANCE TO A RECIPIENT FOR AN ELIGIBLE PROJECT; AND THE
41 MANNER IN WHICH GRANT MONEYS SHALL BE APPLIED AND DISTRIBUTED.
42 2. PURSUANT TO THE PROVISIONS OF THIS ARTICLE, THE DEPARTMENT SHALL
43 REVIEW, WITH THE ADVICE OF LOCAL DISTRIBUTION COMPANIES AND IN CONSULTA-
44 TION WITH THE STATE DEPARTMENT OF ECONOMIC DEVELOPMENT AND ANY STATE
45 AGENCY OR ENTITY WHICH IN THE DISCRETION OF THE DEPARTMENT IT SHOULD
46 WISH TO CONSULT, APPLICATIONS FOR GRANT MONEYS OF POTENTIALLY ELIGIBLE
47 PROJECTS. REVIEW OF SUCH APPLICATIONS SHALL INCLUDE, BUT NEED NOT BE
48 LIMITED TO, AN ASSESSMENT OF (A) THE IMPACT ON JOB GROWTH AND JOB
49 RETENTION IN THE AFFECTED MUNICIPALITIES; (B) THE IMPACT ON ANY OTHER
50 GEOGRAPHICAL AREA OF THE STATE; (C) THE POPULATION DENSITY OF THE
51 AFFECTED MUNICIPALITY; (D) THE AFFECTED MUNICIPALITY'S LACK OF PROXIMITY
52 TO A METROPOLITAN AREA; (E) THE AVAILABILITY OF AN ALTERNATE SOURCE OF
53 FUNDING FOR THE PROPOSED PROJECT; (F) THE IMPACT ON ACHIEVING THE
54 REGION'S AND THE STATE'S TECHNOLOGY AND ECONOMIC DEVELOPMENT GOALS; (G)
55 PUBLIC HEALTH AND SAFETY; AND (H) COMPLIANCE WITH STATE AND FEDERAL LAW,
56 RULES AND REGULATIONS.
A. 5585 4
1 3. NO PROVISION OF THIS ARTICLE SHALL BE DEEMED TO REQUIRE A LOCAL
2 DISTRIBUTION COMPANY HOLDING A FRANCHISE IN, OR HISTORICALLY SERVING,
3 THE AREA IN WHICH THE PROPOSED PROJECT IS LOCATED TO UNDERTAKE A
4 PROPOSED PROJECT.
5 S 240. GRANT AGREEMENTS. 1. PRIOR TO THE DISBURSEMENT OF ANY MONIES
6 FROM THE FUND, THE DEPARTMENT AND ANY RECIPIENT HAVING THE POWER TO
7 CONTRACT WITH RESPECT TO THE FINANCING OF AN ELIGIBLE PROJECT SHALL
8 ENTER INTO A GRANT DISBURSEMENT AGREEMENT PROVIDING FOR THE CONSTRUCTION
9 OF THE ELIGIBLE PROJECT. THE DEPARTMENT SHALL PREPARE EACH AGREEMENT,
10 WHICH SHALL INCLUDE, BUT NOT BE LIMITED TO, THE FOLLOWING PROVISIONS:
11 (A) A DESCRIPTION OF THE ELIGIBLE PROJECT AND THE TOTAL PROJECT COST;
12 (B) A DETAILED ESTIMATE OF THE ELIGIBLE PROJECT COST;
13 (C) THE RIGHT OF THE DEPARTMENT TO APPROVE ANY CONTRACTS FOR
14 CONSTRUCTION FUNDING PURSUANT TO THE AGREEMENT, AND TO INSPECT AND
15 REVIEW THE CONSTRUCTION OF ELIGIBLE PROJECTS TO THE EXTENT PERMITTED BY
16 LAW AND RULES AND REGULATIONS OF THE DEPARTMENT.
17 (D) REMEDIES IN THE EVENT OF A RECIPIENT'S FAILURE TO COMPLY WITH THE
18 TERMS OF AN AGREEMENT; AND
19 (E) AN AGREEMENT BY THE DEPARTMENT TO GRANT TO THE RECIPIENT, FOR THE
20 PARTIAL CONSTRUCTION OF AN ELIGIBLE PROJECT, A SPECIFIED AMOUNT NOT TO
21 EXCEED FIFTY PERCENT OF THE ESTIMATED REASONABLE TOTAL COST OF
22 CONSTRUCTION OF THE ELIGIBLE PROJECT ESTABLISHED IN THE AGREEMENT,
23 SUBJECT TO THE ABILITY OF THE DEPARTMENT TO PROVIDE SUCH MONEYS, INCLUD-
24 ING ANY OTHER APPROVALS REQUIRED BY STATE OR FEDERAL LAW AND SUCH OTHER
25 CONDITIONS AS THE DEPARTMENT SHALL DETERMINE NECESSARY OR DESIRABLE.
26 (F) AN AGREEMENT BY THE RECIPIENT TO:
27 (I) PROCEED EXPEDITIOUSLY WITH AND COMPLETE THE ELIGIBLE PROJECT IN
28 ACCORDANCE WITH PLANS APPROVED;
29 (II) OPERATE AND MAINTAIN THE ELIGIBLE PROJECT IN ACCORDANCE WITH
30 APPLICABLE REQUIREMENTS OF FEDERAL AND STATE LAW;
31 (III) ESTABLISH AND MAINTAIN PROJECT ACCOUNTS IN ACCORDANCE WITH THE
32 AGREEMENT AND GENERALLY ACCEPTED ACCOUNTING STANDARDS; AND
33 (IV) PERMIT ANY REVIEWS OR AUDITS AND PROVIDE ASSISTANCE DETERMINED TO
34 BE REASONABLE AND NECESSARY BY THE COMMISSIONER.
35 2. NO PROVISION OF THIS ARTICLE SHALL BE DEEMED TO LIMIT THE DEPART-
36 MENT'S ABILITY TO TERMINATE OR IMPOSE CONDITIONS UPON THE OPERATION OF
37 AN ELIGIBLE PROJECT PURSUANT TO THE PROVISIONS OF THIS CHAPTER OR ANY
38 OTHER PROVISION OF LAW.
39 3. THE DEPARTMENT SHALL MAKE ANY SUCH OTHER AGREEMENTS OR COVENANTS AS
40 THE DEPARTMENT MAY DEEM NECESSARY OR DESIRABLE IN CONNECTION WITH THE
41 ISSUANCE BY THE DEPARTMENT OF ITS GRANT.
42 S 241. INSPECTION AND CERTIFICATION. 1. THE DEPARTMENT SHALL PROVIDE
43 THE MEANS OF ENSURING THE COMPLIANCE OF RECIPIENTS WITH EACH GRANT
44 AGREEMENT BY:
45 (A) RETAINING THE RIGHT TO INSPECT AND REVIEW WORK ON EACH ELIGIBLE
46 PROJECT IN PROGRESS AND UPON COMPLETION, AND DETERMINING WHETHER SUCH
47 WORK WAS UNDERTAKEN AND COMPLETED IN COMPLIANCE WITH ALL RELEVANT PLANS
48 AND THE TERMS OF SUCH FINANCING AGREEMENT TO THE EXTENT THAT SUCH
49 INSPECTIONS AND REVIEW ARE PERMITTED BY LAW AND RULES AND REGULATIONS OF
50 THE DEPARTMENT;
51 (B) RETAINING THE RIGHT TO DISBURSE OR REFUSE TO DISBURSE PAYMENTS TO
52 A RECIPIENT PURSUANT TO A GRANT AGREEMENT BASED UPON THE DETERMINATIONS
53 OF ANY REVIEW OR AUDIT;
54 (C) ESTABLISHING REMEDIES IF WORK ON AN ELIGIBLE PROJECT HAS NOT BEEN
55 COMPLETED IN ACCORDANCE WITH ALL RELEVANT PLANS AND THE TERMS OF SUCH
56 GRANT AGREEMENT DUE TO FACTORS WITHIN THE RECIPIENT'S CONTROL; AND
A. 5585 5
1 (D) REQUIRING A RECIPIENT TO MAINTAIN PROJECT ACCOUNTS WITH RESPECT TO
2 ANY ELIGIBLE PROJECT.
3 2. NOTHING HEREIN SHALL BE CONSTRUED TO AFFECT OR DIMINISH THE GENERAL
4 AUTHORITY OF THE DEPARTMENT TO INSPECT AND REVIEW THE WORK ON ANY
5 PROJECT FINANCED PURSUANT TO THIS ARTICLE, OR TO INSPECT THE RECORDS
6 RELATING TO SUCH PROJECT, FOR THE PURPOSE OF DETERMINING COMPLIANCE WITH
7 ANY OTHER PROVISIONS OF THIS CHAPTER.
8 S 242. NONCOMPLIANCE; NOTIFICATION; APPLICATION FOR SERVICE. IN THE
9 EVENT THAT THE WORK COMPLETED PURSUANT TO AN AGREEMENT IS DEEMED NOT IN
10 COMPLIANCE WITH SUCH AGREEMENT, THE DEPARTMENT SHALL EXPEDITIOUSLY NOTI-
11 FY THE RECIPIENT OF SUCH NONCOMPLIANCE AND INDICATE THE REASONS FOR SUCH
12 DETERMINATION.
13 S 4. Severability. If any clause, sentence, paragraph, section or part
14 of this act shall be adjudged by any court of competent jurisdiction to
15 be invalid and after exhaustion of all further judicial review, the
16 judgment shall not affect, impair or invalidate the remainder thereof,
17 but shall be confined in its operation to the clause, sentence, para-
18 graph, section or part of this act directly involved in the controversy
19 in which the judgment shall have been rendered.
20 S 5. This act shall take effect immediately and shall expire and be
21 deemed repealed 4 years after such date; provided, however, that any
22 rules and regulations necessary for the timely implementation of this
23 act on its effective date shall be promulgated on or before such date.
