Bill Text: NY A10053 | 2009-2010 | General Assembly | Amended


Bill Title: Extends the expiration of the power for jobs program and the energy cost savings benefits program; creates the economic development power program to take over after the expiration of power for jobs and energy cost savings benefit programs.

Spectrum: Partisan Bill (Democrat 15-0)

Status: (Introduced - Dead) 2010-04-23 - print number 10053a [A10053 Detail]

Download: New_York-2009-A10053-Amended.html
                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                       10053--A
                                 I N  A S S E M B L Y
                                     March 1, 2010
                                      ___________
       Introduced by M. of A. CAHILL, DESTITO, STIRPE, LIFTON, JAFFEE, McENENY,
         CHRISTENSEN,  ROSENTHAL, SKARTADOS, GORDON, RUSSELL, GABRYSZAK, LUPAR-
         DO, SCHIMEL, LATIMER -- read once and referred  to  the  Committee  on
         Energy  -- reported and referred to the Committee on Ways and Means --
         committee discharged, bill amended, ordered reprinted as  amended  and
         recommitted to said committee
       AN ACT to amend the economic development law, chapter 316 of the laws of
         1997  amending  the  public authorities law and other laws relating to
         the provision of low cost power to foster statewide economic  develop-
         ment;  and  to  amend  chapter  645  of  the laws of 2006 amending the
         economic development law and other laws relating to reauthorizing  the
         New York power authority to make contributions to the general fund, in
         relation to extending the expiration of the power for jobs program and
         the energy cost savings benefits program; to amend the economic devel-
         opment  law,  in  relation to the creation of the economic development
         power program; and to amend the public authorities law, in relation to
         energy audits as a condition for an award under the economic  develop-
         ment power award
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1.  Section 182 of the economic development law, as amended by
    2  chapter 289 of the laws of 2000, is amended to read as follows:
    3    S 182. The New York state economic development power allocation board.
    4  There is hereby created a New  York  state  economic  development  power
    5  allocation board, which shall possess the powers and duties herein spec-
    6  ified  and  all the powers necessary or proper to carry out the purposes
    7  of this article. The board shall consist of four members, [two]  ONE  OF
    8  WHOM SHALL BE THE PRESIDENT OF THE URBAN DEVELOPMENT CORPORATION AND ONE
    9  of  whom  shall  be  appointed  by the governor and one of whom shall be
   10  appointed by the speaker of the  assembly  and  one  of  whom  shall  be
   11  appointed  by the president pro tempore of the senate. Each member shall
   12  be appointed for terms of three years or until a  successor  shall  have
   13  been  named  and  qualified.  The  chairman  shall be [designated by the
   14  governor from amongst the members] THE PRESIDENT OF THE  URBAN  DEVELOP-
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD15296-08-0
       A. 10053--A                         2
    1  MENT  CORPORATION.    Three  members  shall  constitute a quorum for the
    2  purposes of organizing the board and conducting  the  business  thereof;
    3  and  no  actions  of  the board may be taken except upon the affirmative
    4  vote  of  at  least  three  members.  Videoconferencing  may be used for
    5  attendance and participation by members of the board. If videoconferenc-
    6  ing is used the board shall provide an opportunity  for  the  public  to
    7  attend,  listen  and observe at any site at which a member participates.
    8  The public notice for the meeting shall inform the public  that  [vidio-
    9  conferencing] VIDEOCONFERENCING will be used, identify the locations for
   10  the meeting, and state that the public has the right to attend the meet-
   11  ing  at any of the locations. Members of the board, except those who are
   12  employees or officers of the state, its authorities  or  agencies  shall
   13  not  receive  a  salary  or other compensation, but shall be allowed the
   14  necessary and actual expenses incurred  in  the  performance  of  duties
   15  under this article.
   16    S  2.  Paragraphs  2  and  4  of subdivision (h) of section 183 of the
   17  economic development law, as amended by chapter 217 of the laws of 2009,
   18  are amended to read as follows:
   19    2. During the period commencing on November first, two  thousand  five
   20  and  ending  on  [May fifteenth] DECEMBER THIRTY-FIRST, two thousand ten
   21  eligible businesses shall only include customers served under the  power
   22  authority of the state of New York's high load factor, economic develop-
   23  ment power and other business customers served by political subdivisions
   24  of the state authorized by law to engage in the distribution of electric
   25  power  that  were  authorized  to  be  served  by the authority from the
   26  authority's former James A.  Fitzpatrick nuclear power plant as  of  the
   27  effective  date of this subdivision whose power prices may be subject to
   28  increase before [May fifteenth] DECEMBER THIRTY-FIRST, two thousand ten.
   29  Provided, however, that the total amount of megawatts of replacement and
   30  preservation power which, due  to  the  extension  of  the  energy  cost
   31  savings  benefits, are not relinquished by or withdrawn from a recipient
   32  shall be deemed to be relinquished or withdrawn for purposes of offering
   33  such megawatts by the authority for reallocation pursuant to subdivision
   34  thirteen of section one thousand five of  the  public  authorities  law.
   35  Provided,  further,  that for any such reallocation, the authority shall
   36  maintain the same energy cost savings benefit  level  for  all  eligible
   37  businesses  using  any  available authority resources as deemed feasible
   38  and advisable by the trustees pursuant to section seven  of  part  U  of
   39  chapter fifty-nine of the laws of two thousand six.
   40    4.  Applications  for  an  energy cost savings benefit shall be in the
   41  form and contain such information, exhibits and supporting data  as  the
   42  board  may  prescribe.  The board shall review the applications received
   43  and shall determine the applications which best meet the criteria estab-
   44  lished for the benefits pursuant to this subdivision and it shall recom-
   45  mend such applications to the power authority of the state of  New  York
   46  with such terms and conditions as it deems appropriate; provided, howev-
   47  er, that for energy cost savings benefits granted on or after June thir-
   48  tieth,  two thousand nine through [May fifteenth] DECEMBER THIRTY-FIRST,
   49  two thousand ten, the board shall expedite the awarding of such benefits
   50  and shall defer the review of compliance with such criteria until  after
   51  the  applicant  has  been  awarded  an energy cost savings benefit. Such
   52  terms and conditions shall include reasonable provisions  providing  for
   53  the partial or complete withdrawal of the energy cost savings benefit in
   54  the  event  the recipient fails to maintain mutually agreed upon commit-
   55  ments that may include, but are not limited to,  levels  of  employment,
   56  capital investment and power utilization. Recommendation for approval of
       A. 10053--A                         3
    1  an  energy cost savings benefit shall qualify an applicant to receive an
    2  energy cost savings benefit from the power authority of the state of New
    3  York pursuant to the terms and conditions of the recommendation.
    4    S  3.  The  opening  paragraph  of  paragraph  5 of subdivision (a) of
    5  section 189 of the economic development law, as amended by  chapter  217
    6  of the laws of 2009, is amended to read as follows:
    7    "Power   for  jobs  electricity  savings  reimbursements"  shall  mean
    8  payments made by the power authority of the state of New York as  recom-
    9  mended  by  the board to recipients of allocations of power under phases
   10  four and five of the power for jobs program for a period of  time  until
   11  November  thirtieth,  two thousand four, subsequent to the expiration of
   12  their phase four or five power for jobs contract provided  however  that
   13  any  power  for  jobs  recipient  may  choose  to receive an electricity
   14  savings reimbursement as a substitute for a contract extension  for  the
   15  period  from  the  date  the  recipient's  contract expires through [May
   16  fifteenth]  DECEMBER  THIRTY-FIRST,  two  thousand   ten.   The   "basic
   17  reimbursement"  is  an amount that when credited against the recipient's
   18  actual "unit cost of electricity" during a quarter (meaning the cost for
   19  commodity and delivery per kilowatt-hour for the quantity of electricity
   20  purchased and delivered under the power for jobs program during a  simi-
   21  lar period in the final year of the recipient's contract), results in an
   22  effective unit cost of electricity during the quarter equal to the aver-
   23  age  unit  cost of electricity such recipient paid during the final year
   24  of the contract for power allocated under phase  four  or  five  of  the
   25  power for jobs program.
   26    S  4. Subdivisions (f) and (l) of section 189 of the economic develop-
   27  ment law, as amended by chapter 217 of the laws of 2009, are amended  to
   28  read as follows:
   29    (f)  Eligibility.  The  board  shall  recommend applications for allo-
   30  cations of power under the power for jobs program to or for the  use  of
   31  businesses  which  normally  utilize  a  minimum peak electric demand in
   32  excess of four hundred kilowatts; provided,  however,  that  up  to  one
   33  hundred  megawatts  of power available for allocation during the initial
   34  three phases of the power for jobs program may be recommended for  allo-
   35  cations  to  not-for-profit  corporations  and to small businesses; and,
   36  provided, further that up to seventy-five megawatts of  power  available
   37  for allocation during the fourth phase of the program may be recommended
   38  for  allocations to not-for-profit corporations and to small businesses.
   39  The board may require small businesses that normally utilize  a  minimum
   40  peak  electric  demand  of  less than one hundred kilowatts to aggregate
   41  their electric demand in amounts of no less than one hundred  kilowatts,
   42  for  the  purposes  of applying to the board for an allocation of power.
   43  The board shall recommend allocations of the  additional  three  hundred
   44  megawatts  available  during the fourth phase of the program to any such
   45  eligible applicant, including any recipient of  power  allocated  during
   46  the first phase of the program. The board shall recommend allocations of
   47  the  additional  one hundred eighty-three megawatts available during the
   48  fifth phase of the program to  any  eligible  applicant,  including  any
   49  recipient  of  power allocated during the second and third phases of the
   50  program; provided, however, that the term of contracts  for  allocations
   51  under the fifth phase of the program shall in no case extend beyond [May
   52  fifteenth]  DECEMBER THIRTY-FIRST, two thousand ten. Notwithstanding any
   53  provision of law to the contrary, and, in particular, the provisions  of
   54  this chapter concerning the terms of contracts for allocations under the
   55  power  for  jobs  program, the terms of any contract with a recipient of
   56  power allocated under phase two of the power for jobs program  that  has
       A. 10053--A                         4
    1  expired  or will expire on or before the thirty-first day of August, two
    2  thousand two, may be extended by the power authority of the state of New
    3  York for an additional period of three months effective on the  date  of
    4  such  expiration,  pending  the filing and approval of an application by
    5  such recipient for an allocation under the fifth phase of  the  program.
    6  The  term  of any new contract with such recipient under the fifth phase
    7  of the program shall be deemed  to  include  any  three  month  contract
    8  extension  made pursuant to this subdivision and the termination date of
    9  any such new contract under phase five shall be no later  than  if  such
   10  new  contract  had  commenced  upon  the  expiration  of the recipient's
   11  original phase two contract. The terms of any contract with a  recipient
   12  of  power  allocated under phase four and/or phase five of the power for
   13  jobs program that has expired or will expire on or  before  the  thirty-
   14  first  day  of December, two thousand five, may be extended by the power
   15  authority of the state of New York from a date beginning no earlier than
   16  the first day of December, two thousand four and extending through  [May
   17  fifteenth] DECEMBER THIRTY-FIRST, two thousand ten.
   18    (l)  The board shall solicit and review applications for the power for
   19  jobs electricity savings reimbursements  and  contract  extensions  from
   20  recipients  of  power for jobs allocations under phases four and five of
   21  the program for the award of such reimbursements and/or contract  exten-
   22  sions.  The  board  may  prescribe  a simplified form and content for an
   23  application for such reimbursements or extensions. An applicant shall be
   24  eligible for such reimbursements and/or extensions  only  if  it  is  in
   25  compliance  with  and  agrees  to continue to meet the job retention and
   26  creation commitments set forth in its prior power for jobs contract,  or
   27  such other commitments as the board deems reasonable; provided, however,
   28  that  for  the  power  for  jobs  electricity savings reimbursements and
   29  contract extensions granted on or after  June  thirtieth,  two  thousand
   30  nine  through  [May  fifteenth] DECEMBER THIRTY-FIRST, two thousand ten,
   31  the board shall expedite the  awarding  of  such  reimbursements  and/or
   32  extensions  and  shall  defer the review of compliance with such commit-
   33  ments until after the applicant has been awarded a power for jobs  elec-
   34  tricity savings reimbursement and/or contract extension. The board shall
   35  review  such  applications and make recommendations for the award: 1. of
   36  such reimbursements through the power authority of the state of New York
   37  for a period of time up to November thirtieth, two thousand four, and 2.
   38  of such contract extensions or reimbursements  as  applied  for  by  the
   39  recipient  for  a  period of time beginning December first, two thousand
   40  four and ending [May fifteenth] DECEMBER THIRTY-FIRST, two thousand ten.
   41  At no time shall a recipient receive both a reimbursement and  extension
   42  after  December  first,  two  thousand  four. The power authority of the
   43  state of New York shall receive notification from  the  board  regarding
   44  the  award  of  power for jobs electricity savings reimbursements and/or
   45  contract extensions.
   46    S 5. Section 9 of chapter 316 of the laws of 1997 amending the  public
   47  authorities  law  and  other  laws relating to the provision of low cost
   48  power to foster statewide economic development, as  amended  by  chapter
   49  217 of the laws of 2009, is amended to read as follows:
   50    S  9.  This  act shall take effect immediately and shall expire and be
   51  deemed repealed [May 15] DECEMBER 31, 2010.
   52    S 6. Section 11 of chapter 645  of  the  laws  of  2006  amending  the
   53  economic  development  law  and other laws relating to reauthorizing the
   54  New York power authority to make contributions to the general  fund,  as
   55  amended  by  chapter  217  of  the  laws  of 2009, is amended to read as
   56  follows:
       A. 10053--A                         5
    1    S 11.  This act shall take effect immediately and shall be  deemed  to
    2  have been in full force and effect on and after April 1, 2006; provided,
    3  however,  that the amendments to section 183 of the economic development
    4  law and subparagraph 2 of paragraph g of the  ninth  undesignated  para-
    5  graph of section 1005 of the public authorities law made by sections two
    6  and  six of this act shall not affect the expiration of such section and
    7  subparagraph, respectively, and shall be  deemed  to  expire  therewith;
    8  provided  further,  however,  that  the amendments to section 189 of the
    9  economic development law and subdivision 9 of section 186-a of  the  tax
   10  law  made  by  sections  three, four, five and ten of this act shall not
   11  affect the repeal of such section  and  subdivision,  respectively,  and
   12  shall  be  deemed  to  be repealed therewith; provided further, however,
   13  that section seven of this act shall expire and be deemed repealed  [May
   14  15] DECEMBER 31, 2010.
   15    S  7.  Subdivision (b) of section 183 of the economic development law,
   16  as amended by chapter 316 of the laws of 1997, is  amended  to  read  as
   17  follows:
   18    (b)  To  evaluate applications for allocations of economic development
   19  power and of power under the power for jobs program and to  make  recom-
   20  mendations  with respect to such proposed allocations; PROVIDED HOWEVER,
   21  THAT THE BOARD SHALL NOT ACCEPT ANY NEW  APPLICATION  THAT  REQUESTS  AN
   22  ALLOCATION  OF  ECONOMIC  DEVELOPMENT POWER OR POWER UNDER THE POWER FOR
   23  JOBS PROGRAM AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND TEN; AND PROVIDED
   24  FURTHER THAT THE BOARD SHALL NOT EXTEND THE TERM OF ANY CONTRACT FOR  AN
   25  ALLOCATION UNDER THE ECONOMIC DEVELOPMENT PROGRAM THAT WILL EXPIRE ON OR
   26  BEFORE  JANUARY  FIRST, TWO THOUSAND TEN FOR THE PURPOSE OF PROVIDING AN
   27  ALLOCATION AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND TEN.
   28    S 8. Section 183 of the economic development law is amended by  adding
   29  a new subdivision (i) to read as follows:
   30    (I)  TO  SOLICIT  APPLICATIONS  FOR  AWARDS  UNDER THE POWER SOLUTIONS
   31  PROGRAM AND MAKE RECOMMENDATIONS TO THE POWER AUTHORITY OF THE STATE  OF
   32  NEW  YORK  FOR  AWARDS  UNDER  SUCH  PROGRAM IN THE MANNER AUTHORIZED IN
   33  SECTION ONE HUNDRED EIGHTY-EIGHT-A OF THIS ARTICLE.
   34    S 9. Subdivision (g) of section 183 of the economic  development  law,
   35  as  amended  by  chapter  226 of the laws of 2002, is amended to read as
   36  follows:
   37    (g) [The] EXCEPT AS OTHERWISE PROVIDED  IN  THIS  SECTION,  THE  board
   38  shall  solicit applications for economic development power and for power
   39  under the power for jobs program by public notice. Such notice shall  be
   40  in  the  form  of  newspaper advertisements, press releases, and by such
   41  other means as the board finds appropriate. Solicitations of preliminary
   42  applications for power under the power  for  jobs  program  shall  begin
   43  promptly  after  the  effective date of chapter three hundred sixteen of
   44  the laws of nineteen hundred ninety-seven establishing such program. The
   45  board shall solicit applications for the additional three hundred  mega-
   46  watts  of  power  available  during  the  fourth phase of the program by
   47  public notice, written notification to each recipient of power allocated
   48  during the first phase of the program, and such other means as the board
   49  finds appropriate. Solicitations of applications for such three  hundred
   50  megawatts  of  power  available in phase four of the program shall begin
   51  promptly after the effective date of part KK of chapter  sixty-three  of
   52  the  laws  of  two thousand making such power available. The board shall
   53  solicit applications for the additional one hundred  eighty-three  mega-
   54  watts of power available during the fifth phase of the program by public
   55  notice, written notification to each recipient of power allocated during
   56  the  second  and third phases of the program, and by such other means as
       A. 10053--A                         6
    1  the board finds appropriate. Solicitations for such one hundred  eighty-
    2  three  megawatts  of  power available in phase five of the program shall
    3  begin promptly after the effective date of the chapter of  the  laws  of
    4  two thousand two making such power available.
    5    S 10. Section 183 of the economic development law, as added by chapter
    6  32 of the laws of 1987, is amended to read as follows:
    7    S  183.  General powers and duties of the board. In furtherance of the
    8  purposes set forth in this article, the board shall have  the  following
    9  powers:
   10    (a) To adopt, within one hundred twenty days after appointment, eligi-
   11  bility  criteria  and  rules  and  regulations, IN CONSULTATION WITH THE
   12  POWER AUTHORITY OF THE STATE OF  NEW  YORK  AND  THE  URBAN  DEVELOPMENT
   13  CORPORATION,  relating  to  the  activities of the board AS DESCRIBED IN
   14  THIS ARTICLE.
   15    (b) To evaluate applications for allocations of  economic  development
   16  power  and  to  make recommendations with respect to such proposed allo-
   17  cations, PROVIDED HOWEVER, THAT THE BOARD SHALL NOT ACCEPT NEW  APPLICA-
   18  TIONS  OR  EXTEND  ANY CONTRACTS FOR ALLOCATIONS OF ECONOMIC DEVELOPMENT
   19  POWER TO EXTEND BEYOND DECEMBER THIRTY-FIRST, TWO THOUSAND TEN.
   20    (c) [To evaluate economic development plans for the use of  industrial
   21  incentive  awards  submitted  by the power authority of the state of New
   22  York pursuant to this article.
   23    (d)] To provide advice and assistance when appropriate  to  applicants
   24  on  state  economic development programs and services in addition to the
   25  economic development power  [and  industrial  incentive  awards  specif-
   26  ically] AS provided for in this section.
   27    (D)  TO  SOLICIT  APPLICATIONS  FOR  AWARDS  UNDER THE POWER SOLUTIONS
   28  PROGRAM, AND MAKE RECOMMENDATIONS TO THE POWER AUTHORITY OF THE STATE OF
   29  NEW YORK FOR AWARDS UNDER SUCH  PROGRAM  IN  THE  MANNER  AUTHORIZED  IN
   30  SECTION ONE HUNDRED EIGHTY-EIGHT-A OF THIS ARTICLE.
   31    The  [department,  the] power authority of the state of New York, [the
   32  urban development corporation, and all  other  state  officers,  depart-
   33  ments,  boards,  divisions  and  commissions] WITH THE ASSISTANCE OF THE
   34  URBAN DEVELOPMENT CORPORATION AND THE DEPARTMENT  OF  ECONOMIC  DEVELOP-
   35  MENT,  shall  render such services to the board [within their respective
   36  functions] as may be requested by the board.  IN ADDITION, EVERY AGENCY,
   37  DEPARTMENT, OFFICE, DIVISION OR PUBLIC AUTHORITY  OF  THIS  STATE  SHALL
   38  COOPERATE  WITH THE BOARD AND FURNISH SUCH INFORMATION AND ASSISTANCE AS
   39  THE BOARD DETERMINES IS REASONABLY NECESSARY TO ACCOMPLISH ITS PURPOSE.
   40    [The board shall solicit applications for economic  development  power
   41  by  public  notice. Such notice shall be in the form of newspaper adver-
   42  tisements, press releases, and by such other means as  the  board  finds
   43  appropriate.]
   44    S  11. The economic development law is amended by adding a new section
   45  188-a to read as follows:
   46    S 188-A. POWER SOLUTIONS PROGRAM. 1. DEFINITIONS. FOR THE PURPOSES  OF
   47  THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   48    (A)  "APPLICABLE CRITERIA" SHALL MEAN THE CRITERIA SPECIFIED IN SUBDI-
   49  VISION THREE OF THIS SECTION.
   50    (B) "AUTHORITY" SHALL MEAN THE POWER AUTHORITY OF  THE  STATE  OF  NEW
   51  YORK.
   52    (C)  "POWER  SOLUTIONS  AWARD"  OR "AWARD" SHALL MEAN AN ALLOCATION OF
   53  POWER OR AN AWARD PAID BY THE AUTHORITY PURSUANT TO SECTION ONE THOUSAND
   54  FIVE OF THE PUBLIC AUTHORITIES LAW IN THE FORM OF AN ELECTRIC BILL CRED-
   55  IT ON THE INVOICE PROVIDED BY THE RECIPIENT'S LOCAL DISTRIBUTOR OF ELEC-
   56  TRIC SERVICE PURSUANT TO THE POWER SOLUTIONS  PROGRAM  CREATED  BY  THIS
       A. 10053--A                         7
    1  SECTION  AND/OR  THE  PROVISION OF ENERGY RELATED PROJECTS, PROGRAMS AND
    2  SERVICES AS DEFINED IN SUBDIVISION SIXTEEN OF SECTION ONE THOUSAND  FIVE
    3  OF THE PUBLIC AUTHORITIES LAW.
    4    (D)  "ELIGIBLE  APPLICANT"  SHALL  MEAN AN ELIGIBLE BUSINESS, ELIGIBLE
    5  SMALL BUSINESS, OR ELIGIBLE NOT-FOR-PROFIT  CORPORATION  AS  DEFINED  IN
    6  THIS  SECTION,  PROVIDED  HOWEVER,  THAT AN ELIGIBLE APPLICANT SHALL NOT
    7  INCLUDE RETAIL BUSINESSES AS DEFINED BY THE  BOARD,  INCLUDING,  WITHOUT
    8  LIMITATION,  SPORTS  VENUES,  GAMING OR ENTERTAINMENT-RELATED ESTABLISH-
    9  MENTS OR PLACES OF OVERNIGHT ACCOMMODATION.
   10    (E)  "ELIGIBLE  BUSINESS"  SHALL  MEAN  A  BUSINESS   OTHER   THAN   A
   11  NOT-FOR-PROFIT  CORPORATION WHICH NORMALLY UTILIZES A MINIMUM PEAK ELEC-
   12  TRIC DEMAND IN EXCESS OF FOUR HUNDRED KILOWATTS.
   13    (F) "ELIGIBLE SMALL BUSINESS" SHALL MEAN A BUSINESS OTHER THAN A  NOT-
   14  FOR-PROFIT  CORPORATION  WHICH NORMALLY UTILIZES A MINIMUM PEAK ELECTRIC
   15  DEMAND EQUAL TO OR LESS THAN FOUR HUNDRED KILOWATTS.
   16    (G) "LOCAL DISTRIBUTOR OF ELECTRIC SERVICE"  SHALL  MEAN  AN  ELECTRIC
   17  CORPORATION  AS  DEFINED  IN  SUBDIVISION THIRTEEN OF SECTION TWO OF THE
   18  PUBLIC SERVICE LAW OR THE LONG ISLAND POWER AUTHORITY.
   19    (H) "ELIGIBLE NOT-FOR-PROFIT CORPORATION"  SHALL  MEAN  A  CORPORATION
   20  DEFINED   IN  SUBDIVISION  FIVE  OF  SECTION  ONE  HUNDRED  TWO  OF  THE
   21  NOT-FOR-PROFIT CORPORATION LAW.
   22    2. APPLICATIONS. (A) THE BOARD SHALL SOLICIT APPLICATIONS  FOR  AWARDS
   23  UNDER  THE  POWER  SOLUTIONS  PROGRAM BY PUBLIC NOTICE BEGINNING ON JULY
   24  FIRST, TWO THOUSAND TEN. SUCH NOTICE MAY  INCLUDE  NEWSPAPER  ADVERTISE-
   25  MENTS,  PRESS  RELEASES,  WEBSITE POSTINGS, PAPER OR ELECTRONIC MAILING,
   26  AND/OR SUCH OTHER FORM AS THE BOARD FINDS  APPROPRIATE  IN  CONSULTATION
   27  WITH THE AUTHORITY.
   28    (B)  APPLICATIONS FOR THE POWER SOLUTIONS PROGRAM SHALL BE IN THE FORM
   29  AND CONTAIN SUCH INFORMATION, EXHIBITS AND SUPPORTING DATA AS THE  BOARD
   30  PRESCRIBES  IN  CONSULTATION WITH THE AUTHORITY. A COPY OF EACH APPLICA-
   31  TION RECEIVED SHALL BE MADE AVAILABLE FOR REVIEW BY EACH BOARD MEMBER.
   32    (C) SUBJECT TO CONFIDENTIALITY  REQUIREMENTS,  UPON  RECEIPT  OF  EACH
   33  APPLICATION  BY  THE  AUTHORITY,  THE AUTHORITY SHALL PROMPTLY NOTIFY BY
   34  ELECTRONIC MEANS, INCLUDING WEB SITE POSTINGS AND SUCH OTHER METHODS THE
   35  BOARD DEEMS APPROPRIATE IN CONSULTATION WITH THE AUTHORITY,  THE  GOVER-
   36  NOR,  THE  SPEAKER OF THE ASSEMBLY, THE MINORITY LEADER OF THE ASSEMBLY,
   37  THE TEMPORARY PRESIDENT OF  THE  SENATE,  THE  MINORITY  LEADER  OF  THE
   38  SENATE,  AND  EACH MEMBER OF THE STATE LEGISLATURE IN WHOSE DISTRICT ANY
   39  PORTION OF THE FACILITY OWNED OR OPERATED BY THE APPLICANT  IS  LOCATED.
   40  SUCH  NOTICE  SHALL PROVIDE THE NAME AND A DESCRIPTION OF THE APPLICANT,
   41  AND THE ADDRESS OF THE APPLICANT'S  FACILITIES  THAT  WOULD  RECEIVE  AN
   42  AWARD  UNDER  THE  PROGRAM.  THE  AUTHORITY SHALL ALSO DEVELOP A LISTING
   43  WHICH CONTAINS THE NAME AND A DESCRIPTION OF EACH APPLICANT,  THE  AWARD
   44  SOUGHT  BY  EACH  APPLICANT, AND THE ADDRESS OF THE FACILITIES FOR WHICH
   45  THE APPLICANT SEEKS THE AWARD, AND MAKE THE LISTING AVAILABLE FOR PUBLIC
   46  REVIEW ON THE AUTHORITY'S WEBSITE.
   47    3. REVIEW, APPLICABLE CRITERIA  AND  RECOMMENDATIONS.  (A)  THE  BOARD
   48  SHALL  REVIEW  APPLICATIONS SUBMITTED UNDER THE POWER SOLUTIONS PROGRAM.
   49  THE BOARD SHALL MAKE AN INITIAL DETERMINATION OF WHETHER  THE  APPLICANT
   50  IS AN ELIGIBLE APPLICANT.  AN APPLICANT MUST AGREE TO UNDERTAKE AN AUDIT
   51  PURSUANT  TO  SUBDIVISION  SEVENTEEN OF SECTION ONE THOUSAND FIVE OF THE
   52  PUBLIC AUTHORITIES LAW IN ORDER TO BE CONSIDERED AN  ELIGIBLE  APPLICANT
   53  BY  THE  BOARD.    THE BOARD MAY RECOMMEND TO THE AUTHORITY THAT A POWER
   54  SOLUTIONS PROGRAM AWARD BE AWARDED TO AN APPLICANT BASED ON AN  APPLICA-
   55  TION OF THE FOLLOWING CRITERIA:
       A. 10053--A                         8
    1    (I)  THE  SIGNIFICANCE  OF  THE COST OF ELECTRICITY TO THE APPLICANT'S
    2  OVERALL COST OF DOING BUSINESS, AND THE IMPACT THAT  A  POWER  SOLUTIONS
    3  AWARD WILL HAVE ON THE APPLICANT'S OPERATING COSTS;
    4    (II)  THE  EXTENT  TO WHICH A POWER SOLUTIONS AWARD WILL RESULT IN NEW
    5  CAPITAL INVESTMENT IN THE STATE BY THE APPLICANT, THE  EXTENT  TO  WHICH
    6  THE APPLICANT WILL AGREE TO COMMIT TO MAKING NEW CAPITAL INVESTMENT AS A
    7  CONDITION TO RECEIVING A POWER SOLUTIONS AWARD, AND ANY PREVIOUS CAPITAL
    8  INVESTMENT  UNDERTAKEN BY THE APPLICANT UNDER OTHER ECONOMIC DEVELOPMENT
    9  PROGRAMS WHERE APPLICABLE;
   10    (III) THE SIZE OF THE APPLICANT'S TOTAL PAYROLL (SALARY, BENEFITS  AND
   11  THE  NUMBER  OF  JOBS)  WITHIN  THE STATE AND AT THE FACILITY THAT WOULD
   12  RECEIVE THE AWARD;
   13    (IV) THE NUMBER OF JOBS THAT WILL BE CREATED OR  RETAINED  WITHIN  THE
   14  STATE IN RELATION TO THE REQUESTED POWER SOLUTIONS AWARD, AND THE EXTENT
   15  TO  WHICH  THE  APPLICANT  WILL AGREE TO COMMIT TO CREATING OR RETAINING
   16  SUCH JOBS AS A CONDITION TO RECEIVING A POWER SOLUTIONS AWARD;
   17    (V) WHETHER THE APPLICANT, DUE TO THE HIGH COST OF ELECTRICITY, IS  AT
   18  RISK OF CLOSING FACILITIES OR OPERATIONS IN THE STATE, RELOCATING FACIL-
   19  ITIES  OR OPERATIONS OUT OF THE STATE, OR LOSING A SIGNIFICANT NUMBER OF
   20  JOBS IN THE STATE, IN THE ABSENCE OF A POWER SOLUTIONS AWARD;
   21    (VI) THE SIGNIFICANCE OF THE APPLICANT'S FACILITY THAT  WOULD  RECEIVE
   22  THE BENEFIT OF THE AWARD TO THE ECONOMY OF THE AREA IN WHICH SUCH FACIL-
   23  ITY IS LOCATED;
   24    (VII)  THE  EXTENT TO WHICH THE APPLICANT HAS INVESTED IN ENERGY EFFI-
   25  CIENCY MEASURES AND/OR ONSITE POWER GENERATION  FOR  COMBINED  HEAT  AND
   26  POWER  AND/OR  DISTRIBUTED  GENERATION PURPOSES OR WILL AGREE, IF RECOM-
   27  MENDED BY THE BOARD FOR AN AWARD, TO COMMIT  TO  MAKING  COST  EFFECTIVE
   28  TANGIBLE  INVESTMENTS  IN ENERGY EFFICIENCY MEASURES AND/OR ONSITE POWER
   29  GENERATION FOR COMBINED HEAT AND  POWER  AND/OR  DISTRIBUTED  GENERATION
   30  PURPOSES  AS IDENTIFIED PURSUANT TO SUBDIVISION SEVENTEEN OF SECTION ONE
   31  THOUSAND FIVE OF THE PUBLIC AUTHORITIES LAW AS A CONDITION TO  RECEIVING
   32  A POWER SOLUTIONS AWARD;
   33    (VIII)  THE  EXTENT TO WHICH THE APPLICANT'S OPERATIONS ARE CONSISTENT
   34  WITH THE POLICIES AND GOALS OF THE STATE ENERGY PLAN;
   35    (IX) THE EXTENT TO WHICH THE APPLICANT  PREVIOUSLY  RECEIVED  BENEFITS
   36  UNDER OTHER POWER-RELATED PROGRAMS OF THE AUTHORITY, AND THE APPLICANT'S
   37  PRIOR PERFORMANCE UNDER SUCH PROGRAMS WHERE APPLICABLE;
   38    (X)  IN  THE CASE OF A NOT-FOR-PROFIT CORPORATION, WHETHER IT PROVIDES
   39  CRITICAL SERVICES OR SUBSTANTIAL BENEFITS TO THE LOCAL COMMUNITY;
   40    (XI) THE EXTENT TO WHICH AN AWARD IS CONSISTENT WITH  STATE,  REGIONAL
   41  AND  LOCAL  ECONOMIC DEVELOPMENT STRATEGIES AND SUPPORTED BY LOCAL UNITS
   42  OF GOVERNMENT IN THE AREA IN WHICH THE BUSINESS  IS  LOCATED  OR  TO  BE
   43  LOCATED;
   44    (XII)  THE  EXTENT  TO  WHICH AN AWARD MIGHT RESULT IN INEQUITY FOR AN
   45  APPLICANT AS COMPARED TO ITS COMPETITORS WITHIN THE STATE; AND
   46    (XIII) IMPACT OF CURRENT ECONOMIC CONDITIONS ON THE APPLICANT.
   47    (B) A RECOMMENDATION BY THE BOARD THAT THE AUTHORITY PROVIDE  A  POWER
   48  SOLUTIONS  PROGRAM  AWARD  TO AN ELIGIBLE APPLICANT SHALL INCLUDE: (1) A
   49  DESCRIPTION OF THE AWARD THAT THE BOARD HAS DETERMINED SHOULD BE AWARDED
   50  TO SUCH APPLICANT, PROVIDED HOWEVER, THAT THE  BOARD  MAY  RECOMMEND  AN
   51  AWARD  THAT  DIFFERS  FROM THE AWARD REQUESTED BY AN ELIGIBLE APPLICANT;
   52  (2) AN EFFECTIVE TERM OF CONTRACT BETWEEN THE ELIGIBLE APPLICANT AND THE
   53  AUTHORITY WHICH SHALL NOT EXCEED SEVEN YEARS, PROVIDED HOWEVER THAT  THE
   54  TERM  OF  ANY  SUCH  CONTRACT  SHALL NOT BECOME EFFECTIVE BEFORE JANUARY
   55  FIRST, TWO THOUSAND ELEVEN; (3) THE DATE OF  THE  MANDATORY  MIDCONTRACT
   56  COMPLIANCE  REVIEW  AT  WHICH  TIME  THE ELIGIBLE APPLICANT, IF FOUND IN
       A. 10053--A                         9
    1  COMPLIANCE MAY APPLY FOR A SUBSEQUENT CONTRACT TO GO INTO EFFECT AT  THE
    2  CONCLUSION  OF  THE  CURRENT  CONTRACT  AS  LONG AS COMPLIANCE CONTINUES
    3  THROUGH THE CONCLUSION OF SUCH CONTRACT; AND (4) SUCH  OTHER  TERMS  AND
    4  CONDITIONS  THAT  THE  BOARD  RECOMMENDS  AS APPROPRIATE. SUCH TERMS AND
    5  CONDITIONS SHALL INCLUDE PROVISIONS FOR  EFFECTIVE  PERIODIC  AUDITS  OF
    6  PROGRAM PARTICIPANTS FOR THE PURPOSE OF DETERMINING CONTRACT AND PROGRAM
    7  COMPLIANCE,  AND THE PARTIAL OR COMPLETE WITHDRAWAL OF A POWER SOLUTIONS
    8  PROGRAM AWARD IN THE CASE OF A PROGRAM PARTICIPANT THAT FAILS  TO  MAIN-
    9  TAIN  MUTUALLY  AGREED  UPON  COMMITMENTS,  INCLUDING BUT NOT LIMITED TO
   10  LEVELS OF EMPLOYMENT, POWER UTILIZATION, CAPITAL INVESTMENTS, AND ENERGY
   11  EFFICIENCY MEASURES.
   12    (C) THE BOARD MAY BASE ITS RECOMMENDATION ON WHICH ELIGIBLE APPLICANTS
   13  IT DETERMINES BEST MEET THE APPLICABLE CRITERIA; PROVIDED  HOWEVER  THAT
   14  THE  BOARD SHALL SET ASIDE A PORTION OF THE BENEFITS AVAILABLE UNDER THE
   15  POWER SOLUTIONS PROGRAM IN AN AMOUNT NOT LESS THAN ONE HUNDRED MEGAWATTS
   16  FOR ELIGIBLE SMALL BUSINESSES AND ELIGIBLE NOT-FOR-PROFIT  CORPORATIONS;
   17  AND  PROVIDED  FURTHER  THAT  THE BOARD SHALL SET ASIDE A PORTION OF THE
   18  BENEFITS AVAILABLE UNDER THE PROGRAM IN AN  AMOUNT  NOT  LESS  THAN  ONE
   19  HUNDRED MEGAWATTS FOR ELIGIBLE HIGH LOAD FACTOR MANUFACTURERS AS DEFINED
   20  IN THE FOURTH UNDESIGNATED PARAGRAPH OF SECTION ONE THOUSAND FIVE OF THE
   21  PUBLIC AUTHORITIES LAW.
   22    (D) A RECOMMENDATION FOR A POWER SOLUTIONS PROGRAM AWARD SHALL QUALIFY
   23  AN  APPLICANT  TO  ENTER  INTO A CONTRACT, WITH THE AUTHORITY TO RECEIVE
   24  SUCH AWARD FROM THE AUTHORITY PURSUANT TO THE TERMS  AND  CONDITIONS  OF
   25  THE RECOMMENDATION OR ON SUCH OTHER TERMS AS THE AUTHORITY DETERMINES TO
   26  BE  APPROPRIATE.   IN THE EVENT THAT THE AWARD INCLUDES THE PROVISION OF
   27  ENERGY RELATED PROJECTS, PROGRAMS AND SERVICES AS DEFINED IN SUBDIVISION
   28  SIXTEEN OF SECTION ONE THOUSAND FIVE OF THE PUBLIC AUTHORITIES LAW,  THE
   29  CONTRACT SHALL ALLOW FOR REIMBURSEMENT FOR COSTS TO AN ENTITY OTHER THAN
   30  THE  POWER  AUTHORITY OF THE STATE OF NEW YORK SO LONG AS SUCH COSTS ARE
   31  DEEMED REASONABLE AND APPROPRIATE.   SUCH CONTRACTS SHALL  PROVIDE  THAT
   32  THE  LOCAL  DISTRIBUTOR  OF  ELECTRIC  SERVICE WILL PROVIDE CUSTOMER AND
   33  BILLING SERVICES UPON MUTUALLY AGREED TERMS AND CONDITIONS.
   34    (E) UPON APPROVAL OR DENIAL OF ANY APPLICATION FOR A  POWER  SOLUTIONS
   35  PROGRAM AWARD, THE BOARD SHALL ISSUE IN WRITING A STATEMENT OF ITS FIND-
   36  INGS  AND  CONCLUSIONS  WITH RESPECT TO SUCH APPLICATION AND THE REASONS
   37  FOR ITS APPROVAL OR DENIAL.
   38    (F) NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION, WITH  RESPECT
   39  TO  APPLICANTS  WHO  AS  OF  DECEMBER  FIRST,  TWO  THOUSAND TEN, ARE IN
   40  SUBSTANTIAL COMPLIANCE WITH ALL CONTRACTUAL  COMMITMENTS  AND  RECEIVING
   41  BENEFITS  UNDER  THE  POWER  FOR  JOBS  OR  ENERGY  COST SAVINGS BENEFIT
   42  PROGRAMS, BUT WOULD OTHERWISE NOT  RECEIVE  A  RECOMMENDATION  FROM  THE
   43  BOARD FOR A POWER SOLUTIONS PROGRAM AWARD, THE BOARD SHALL RECOMMEND AND
   44  THE  AUTHORITY SHALL PROVIDE AN AWARD OF THE POWER SOLUTIONS PROGRAM AND
   45  SHALL PHASE OUT SUCH AWARD OVER A PERIOD NOT TO EXCEED TWO YEARS ON  THE
   46  FOLLOWING TERMS: IN THE FIRST YEAR, THE AWARD SHALL BE IN AN AMOUNT THAT
   47  IS  EQUAL  TO SIXTY-SIX PERCENT OF THE VALUE OF SUCH BENEFIT RECEIVED IN
   48  THE PRECEDING TWELVE MONTHS, AND IN THE SECOND YEAR THE AWARD  SHALL  BE
   49  EQUAL TO THIRTY-THREE PERCENT OF THE VALUE OF SUCH BENEFIT.  SUCH APPLI-
   50  CANT  SHALL  NOT  BE  ENTITLED  TO  REAPPLY FOR AN AWARD UNDER THE POWER
   51  SOLUTIONS PROGRAM DURING THE TERM OF SUCH AWARD.   APPLICANTS MAY  APPLY
   52  FOR  A ONE-YEAR EXTENSION IN SUCH CASE: ONE HUNDRED PERCENT OF THE VALUE
   53  OF SUCH BENEFIT SHALL BE RECEIVED IN THE FIRST YEAR WITH A  VALUE  EQUAL
   54  TO  SIXTY-SIX PERCENT IN THE SECOND YEAR AND IN THE THIRD YEAR THE AWARD
   55  SHALL BE EQUAL TO THIRTY-THREE PERCENT OF THE VALUE OF SUCH BENEFIT.
       A. 10053--A                        10
    1    (G) SUBJECT TO THE THIRTEENTH UNDESIGNATED PARAGRAPH  OF  SECTION  ONE
    2  THOUSAND  FIVE OF THE PUBLIC AUTHORITIES LAW, AS ADDED BY THE CHAPTER OF
    3  THE LAWS OF TWO THOUSAND TEN THAT ADDED THIS SECTION,  THE  BOARD  SHALL
    4  NOT  RECOMMEND  POWER SOLUTIONS PROGRAM AWARDS UNDER THE POWER SOLUTIONS
    5  PROGRAM  IN EXCESS OF NINE HUNDRED FIFTY MEGAWATTS OF ELECTRICITY, UNTIL
    6  JANUARY FIRST, TWO THOUSAND FOURTEEN, WHEN UPON SUCH  DATE  SUCH  AMOUNT
    7  MAY  NOT  EXCEED  ONE  THOUSAND ONE HUNDRED MEGAWATTS OF POWER SOLUTIONS
    8  PROGRAM AWARDS.   ANY POWER SOLUTIONS AWARD  WHICH  IS  RELINQUISHED  OR
    9  WITHDRAWN SHALL BE AVAILABLE FOR REALLOCATION TO ELIGIBLE APPLICANTS.
   10    (H)  (1)  THE  BOARD  SHALL  SUBMIT TO THE DIRECTOR OF THE BUDGET, THE
   11  CHAIRPERSON OF THE SENATE FINANCE COMMITTEE AND THE CHAIRPERSON  OF  THE
   12  ASSEMBLY  WAYS  AND MEANS COMMITTEE AN EVALUATION OF THE SUCCESS OF EACH
   13  ECONOMIC DEVELOPMENT POWER PROGRAM IT ADMINISTERS PREPARED BY  AN  INDE-
   14  PENDENT  THIRD  PARTY.  SUCH  EVALUATION  SHALL  DETERMINE  WHETHER  THE
   15  SERVICES PROVIDED HAVE HELPED RECIPIENTS TO SUCCEED, BASED ON A  COMPAR-
   16  ISON  OF  THE  PERFORMANCE  OF THE RECIPIENTS AGAINST THE NORMS OF THEIR
   17  SPECIFIC INDUSTRY, AND SHALL ASSESS THE EFFECTIVENESS, IF ANY,  OF  EACH
   18  ECONOMIC  DEVELOPMENT POWER PROGRAM. SUCH AN EVALUATION SHALL BE SUBMIT-
   19  TED BY DECEMBER THIRTY-FIRST, TWO  THOUSAND  FOURTEEN  AND  BY  DECEMBER
   20  THIRTY-FIRST EVERY FIVE YEARS THEREAFTER.
   21    (2)  BETWEEN EVALUATION DUE DATES, THE BOARD SHALL MAINTAIN THE NECES-
   22  SARY RECORDS AND DATA REQUIRED TO SATISFY SUCH  EVALUATION  REQUIREMENTS
   23  AND  TO  SATISFY  INFORMATION REQUESTS RECEIVED FROM THE DIRECTOR OF THE
   24  BUDGET, THE CHAIRPERSON OF THE SENATE FINANCE COMMITTEE AND  THE  CHAIR-
   25  PERSON  OF THE ASSEMBLY WAYS AND MEANS COMMITTEE BETWEEN SUCH EVALUATION
   26  DUE DATES.
   27    S 12. Subdivision 5 of section 1005 of the public authorities law,  as
   28  amended  by  chapter  294 of the laws of 1968, paragraph g as amended by
   29  chapter 369 of the laws of 1974, is amended to read as follows:
   30    5. To develop, maintain, manage and operate those parts of the Niagara
   31  and Saint Lawrence hydroelectric projects owned or controlled by  it  in
   32  such  manner  as  to  give effect to the policy hereby declared (and all
   33  plans and acts, and all contracts for the use,  sale,  transmission  and
   34  distribution  of  the power generated by such projects, shall be made in
   35  the light of, consistent with and subject to this policy), namely,  that
   36  such  projects  shall  be  in all respects for the aid, improvement, and
   37  benefit of commerce and navigation  in,  through,  along  and  past  the
   38  Niagara  river,  the  Saint  Lawrence river and the international rapids
   39  section thereof, and that in the  development  of  hydro-electric  power
   40  therefrom such projects shall, UNTIL THAT TIME WHEN THE AUTHORITY IMPLE-
   41  MENTS  THE  ENERGY  EFFICIENCY MEASURES FOR DOMESTIC AND RURAL CUSTOMERS
   42  REQUIRED BY THIS SUBDIVISION BUT NO LATER THAN JANUARY FIRST, TWO  THOU-
   43  SAND  FOURTEEN, be considered primarily as for the benefit of the people
   44  of the state as a whole and particularly the domestic and rural  consum-
   45  ers to whom the power can economically be made available, and according-
   46  ly  that  sale to and use by industry shall be a secondary purpose UNTIL
   47  THE AUTHORITY IMPLEMENTS THE ENERGY EFFICIENCY MEASURES FOR DOMESTIC AND
   48  RURAL CUSTOMERS REQUIRED BY THIS SUBDIVISION, BUT IN ANY EVENT NO  LATER
   49  THAN  JANUARY  FIRST,  TWO THOUSAND FOURTEEN, AT WHICH TIME THE SALE AND
   50  USE BY INDUSTRY SHALL BECOME A PRIMARY PURPOSE, to be  utilized  princi-
   51  pally  to  secure a sufficiently high load factor and revenue returns to
   52  permit domestic and rural use at the lowest possible rates and  in  such
   53  manner  as  to encourage [increased] EFFICIENT domestic and rural use of
   54  electricity. In furtherance  of  this  policy  and  to  secure  a  wider
   55  distribution  of such power and use of the greatest value to the general
   56  public of the state, the authority shall in addition  to  other  methods
       A. 10053--A                        11
    1  which it may find advantageous make provision so that municipalities and
    2  other  political  [sub-divisions] SUBDIVISIONS of the state now or here-
    3  after authorized by law to engage in the distribution of electric  power
    4  may  secure  a reasonable share of the power generated by such projects,
    5  and shall sell the same or cause the same to be  sold  to  such  munici-
    6  palities  and  political  subdivisions  at  prices  representing cost of
    7  generation, plus capital and operating charges,  plus  a  fair  cost  of
    8  transmission,  all  as determined by the trustees, and subject to condi-
    9  tions which shall assure the resale of such power to domestic and  rural
   10  consumers  at  the  lowest  possible  price,  provided, however, that in
   11  disposing of hydro-electric power pursuant to and in furtherance of  the
   12  aforementioned  policy  and  purposes, appropriate provision may also be
   13  made to allocate a reasonable share of project power to agencies created
   14  or designated by other states and authorized  to  resell  the  power  to
   15  users under the same terms and conditions as power is disposed of in New
   16  York  state.  To  that end, the authority may provide in any contract or
   17  contracts which it may make for the sale, transmission and  distribution
   18  of  the  power  that  the  purchaser,  transmitter  or distributor shall
   19  construct, maintain and operate, on such terms as the authority may deem
   20  proper, such connecting lines as may be necessary  for  transmission  of
   21  the  power  from main transmission lines to such municipalities or poli-
   22  tical subdivisions.
   23    Contracts for the sale, transmission and distribution of power  gener-
   24  ated  by such projects shall provide for the effectuation of the forego-
   25  ing policy and shall provide:
   26    a. Payment of all operating and maintenance expenses of the project.
   27    b. Interest on and amortization and reserve charges sufficient  within
   28  fifty  years  of  the  date of issuance to retire the bonds of the power
   29  authority issued for the project.
   30    c. Continuous control and operation of the project by the authority.
   31    d. The effectuation of the policy  declared  in  this  [sub-paragraph]
   32  SUBPARAGRAPH.
   33    e.  Full  and  complete  disclosure to the authority of all factors of
   34  cost in the transmission and distribution of power,  so  that  rates  to
   35  consumers  may  be  fixed  initially in the contract and may be adjusted
   36  from time to time on the basis of  true  cost  data,  provided  that  in
   37  fixing  such  cost  of transmission and distribution no account shall be
   38  given to any franchise value, going value or good-will  based  upon  the
   39  existence  of the contract and the availability of the power for sale by
   40  the transmitting or distributing company or any company associated ther-
   41  ewith.
   42    f. Periodic revisions of the service and rates  to  consumers  on  the
   43  basis  of  accurate  cost  data  obtained by such accounting methods and
   44  systems as shall be approved by the  trustees  and  in  furtherance  and
   45  effectuation   of   the   policy   declared   in   this  [sub-paragraph]
   46  SUBPARAGRAPH.
   47    g. That the rates, services and practices of the purchasing, transmit-
   48  ting and/or distributing public agencies or companies in respect to  the
   49  power generated by such projects shall be governed by the provisions and
   50  principles  established  in  the contract, and not by regulations of the
   51  public service commission or by general principles of public service law
   52  regulating rates, services and practices and that in the event any  such
   53  public  agencies  or  companies  which purchase power from the authority
   54  shall sell any such power for resale, such sale for resale shall be made
   55  at rates no higher than those at which the power was purchased from  the
   56  authority.
       A. 10053--A                        12
    1    h.  The  rate  structures  agreed  upon  in  such contract may provide
    2  different rates for different  localities,  classes  of  consumers,  and
    3  amounts of current consumed, and for changes in the rates resulting from
    4  variation in operating costs and fixed charges.
    5    i.  For  the  cancellation  and  termination of any such contract upon
    6  violation of the  terms  thereof  by  the  purchasing,  transmitting  or
    7  distributing  public  agency  or company, or any subsidiary or associate
    8  thereof.
    9    j. For such security for performance as the authority may deem practi-
   10  cable and advisable, including provisions assuring  the  continuance  of
   11  service by the purchasing, transmitting and/or distributing public agen-
   12  cies  or  companies  and/or the use of their facilities for such service
   13  and/or the continuance of an outlet and adequate market  for  the  power
   14  generated by such projects.
   15    k. Such other terms not inconsistent with the provisions and policy of
   16  this title as the authority may deem advisable.
   17    THE  AUTHORITY,  IN  CONJUNCTION  WITH ANY INVESTOR OWNED UTILITY THAT
   18  PURCHASES HYDROELECTRIC POWER  FROM  THE  AUTHORITY'S  NIAGARA  AND  ST.
   19  LAWRENCE  POWER  PROJECTS  FOR  RURAL AND DOMESTIC USES PURSUANT TO THIS
   20  SUBDIVISION, SHALL INSTALL, IMPLEMENT OR PROVIDE ENERGY EFFICIENCY MEAS-
   21  URES OR IMPROVEMENTS TO THOSE DOMESTIC AND RURAL CONSUMERS AS REFERENCED
   22  IN THIS SUBDIVISION IN ORDER TO REDUCE THE AMOUNT OF KILOWATTS  CONSUMED
   23  BY  SUCH  DOMESTIC  AND RURAL CONSUMERS IN AN AMOUNT EQUAL TO OR GREATER
   24  THAN THE AMOUNT OF SUCH HYDROELECTRIC POWER SOLD TO  SUCH  DOMESTIC  AND
   25  RURAL  CONSUMERS.  AFTER  SUCH IMPROVEMENTS ARE MADE, SUCH HYDROELECTRIC
   26  POWER FROM THE AUTHORITY'S NIAGARA AND ST. LAWRENCE POWER PROJECTS SHALL
   27  NO LONGER BE MADE AVAILABLE TO DOMESTIC AND RURAL  CONSUMERS  THAT  HAVE
   28  RECEIVED  THE  ENERGY  EFFICIENCY  MEASURES  OR  IMPROVEMENTS  AND THOSE
   29  AMOUNTS OF HYDROELECTRIC POWER NO LONGER CONSUMED DUE TO THE IMPLEMENTA-
   30  TION OF ENERGY EFFICIENCY MEASURES OR IMPROVEMENTS MADE PURSUANT TO THIS
   31  SUBDIVISION SHALL BE MADE  AVAILABLE  TO  THE  POWER  SOLUTIONS  PROGRAM
   32  ESTABLISHED IN ARTICLE SIX OF THE ECONOMIC DEVELOPMENT LAW.  SUCH ENERGY
   33  EFFICIENCY  MEASURES  SHALL,  TO  THE  EXTENT  PRACTICABLE,  BE  MADE IN
   34  CONJUNCTION WITH OTHER ENERGY EFFICIENCY PROGRAMS  OFFERED  BY  INVESTOR
   35  OWNED UTILITIES, STATE AGENCIES AND AUTHORITIES INCLUDING BUT NOT LIMIT-
   36  ED  TO  THE NEW YORK STATE ENERGY AND RESEARCH DEVELOPMENT AUTHORITY AND
   37  THE POWER AUTHORITY OF THE STATE OF NEW YORK.  THE AUTHORITY  SHALL,  NO
   38  LATER THAN JANUARY FIRST, TWO THOUSAND FOURTEEN, TRANSFER ALL HYDROELEC-
   39  TRIC  POWER  MADE AVAILABLE TO THE DOMESTIC AND RURAL CONSUMERS PURSUANT
   40  TO THIS SUBDIVISION TO SUCH POWER SOLUTIONS PROGRAM;  AFTER  SUCH  DATE,
   41  THE  POWER  AUTHORITY  OF THE STATE OF NEW YORK SHALL BE RESPONSIBLE FOR
   42  PAYING COSTS ASSOCIATED WITH THE LOSS OF HYDROPOWER  TO  THE  RURAL  AND
   43  DOMESTIC  CONSUMERS UNTIL SUCH CONSUMERS RECEIVE ENERGY EFFICIENCY MEAS-
   44  URES IF REQUESTED BY THE CONSUMER. THE INVESTOR OWNED UTILITY  THAT  HAD
   45  PREVIOUSLY  PROVIDED  THE  HYDROPOWER  SHALL  INFORM THE CONSUMER OF ITS
   46  RIGHT TO SUCH COST PAYMENT AVAILABILITY.  THE  POWER  AUTHORITY  OF  THE
   47  STATE OF NEW YORK SHALL WORK WITH THE INVESTOR OWNED UTILITIES TO ESTAB-
   48  LISH  MECHANISMS FOR SUCH PAYMENT TO THOSE CONSUMERS THAT HAVE REQUESTED
   49  PAYMENTS.
   50    S 13. Section 1005 of the public authorities law is amended by  adding
   51  a  new  thirteenth  and  fourteenth  undesignated  paragraph  to read as
   52  follows:
   53    BEGINNING NO LATER  THAN  JANUARY  FIRST,  TWO  THOUSAND  ELEVEN,  THE
   54  AUTHORITY  IS  AUTHORIZED AND DIRECTED, AS DEEMED FEASIBLE AND ADVISABLE
   55  BY THE TRUSTEES, TO MAKE ANNUAL PAYMENTS IN AN  AMOUNT  OF  ONE  HUNDRED
   56  TWENTY  MILLION  DOLLARS FOR UP TO NINE HUNDRED FIFTY MEGAWATTS OF POWER
       A. 10053--A                        13
    1  SOLUTIONS PROGRAM AWARDS UPON THE RECOMMENDATION OF THE ECONOMIC  DEVEL-
    2  OPMENT  POWER  ALLOCATION  BOARD  UNDER  THE  POWER SOLUTIONS PROGRAM AS
    3  PROVIDED IN SECTION ONE HUNDRED EIGHTY-EIGHT-A OF THE ECONOMIC  DEVELOP-
    4  MENT LAW. NOT LESS OFTEN THAN ANNUALLY, THE AUTHORITY SHALL IDENTIFY AND
    5  ADVISE THE ECONOMIC DEVELOPMENT POWER ALLOCATION BOARD OF THE AVAILABIL-
    6  ITY OF THE FUNDS FOR SUCH AWARD.
    7    BEGINNING  NO  LATER  THAN  JANUARY  FIRST, TWO THOUSAND FOURTEEN, THE
    8  AUTHORITY IS AUTHORIZED AND DIRECTED, AS DEEMED FEASIBLE  AND  ADVISABLE
    9  BY  THE TRUSTEES, TO MAKE ANNUAL PAYMENTS IN AN AMOUNT UP TO ONE HUNDRED
   10  TWENTY MILLION DOLLARS FOR UP TO ONE THOUSAND ONE HUNDRED  MEGAWATTS  OF
   11  POWER  SOLUTIONS  PROGRAM AWARDS UPON THE RECOMMENDATION OF THE ECONOMIC
   12  DEVELOPMENT POWER ALLOCATION BOARD UNDER THE POWER SOLUTIONS PROGRAM  AS
   13  PROVIDED  IN SECTION ONE HUNDRED EIGHTY-EIGHT-A OF THE ECONOMIC DEVELOP-
   14  MENT LAW. NOT LESS OFTEN THAN ANNUALLY, THE AUTHORITY SHALL IDENTIFY AND
   15  ADVISE THE ECONOMIC DEVELOPMENT POWER ALLOCATION BOARD OF THE AVAILABIL-
   16  ITY OF THE FUNDS FOR SUCH AWARD.
   17    S 14. Section 1005 of the public authorities law is amended by  adding
   18  two new subdivisions 17 and 18 to read as follows:
   19    17.  TO PROMOTE THE CONSERVATION AND EFFICIENT USE OF ELECTRICITY, THE
   20  POWER AUTHORITY OF THE STATE OF NEW YORK SHALL UNDERTAKE OR CAUSE TO  BE
   21  UNDERTAKEN  ENERGY  AUDITS  AS  A CONDITION FOR AN AWARD UNDER THE POWER
   22  SOLUTIONS PROGRAM. ENERGY AUDITS SHALL BE CONDUCTED FOR THOSE APPLICANTS
   23  THAT THE BOARD HAS DETERMINED ELIGIBLE  TO  RECEIVE  A  POWER  SOLUTIONS
   24  AWARD.  THE  AUDITS  SHALL  ASSESS  (I) A RECIPIENT'S ELECTRICITY USE TO
   25  DETERMINE BASED ON A COMPARISON OF THE NORMS OF THEIR SPECIFIC INDUSTRY,
   26  COST-EFFECTIVE MEASURES THAT COULD BE EMPLOYED TO REDUCE  ENERGY  COSTS,
   27  ENERGY  USE,  OR  IMPROVE THE EFFICIENCY OF BUILDINGS, BUILDING SYSTEMS,
   28  EQUIPMENT, PROCESSES OR OPERATIONS; AND (II) THE FEASIBILITY  OF  ONSITE
   29  POWER  GENERATION  FOR COMBINED HEAT AND POWER AND/OR DISTRIBUTED GENER-
   30  ATION PURPOSES.  APPLICANTS' ENERGY AUDITS PERFORMED UP  TO  FIVE  YEARS
   31  PRIOR  TO THE DATE OF APPLICATION SUBMISSION MAY BE CONSIDERED. COSTS OF
   32  THE ENERGY AUDITS SHALL BE PAID BY THE POWER AUTHORITY OF THE  STATE  OF
   33  NEW  YORK AS DEEMED FEASIBLE AND ADVISABLE BY THE BOARD. FOR PURPOSES OF
   34  IMPLEMENTING THIS SUBDIVISION ONLY, THE POWER AUTHORITY OR ITS AGENT  IS
   35  AUTHORIZED  TO  APPLY FOR FUNDING FROM ANY PROGRAM THAT PAYS ALL OR SOME
   36  OF THE COSTS OF SUCH AUDITS, AND THE POWER AUTHORITY OR ITS AGENT  SHALL
   37  BE ENTITLED TO RECEIVE SUCH FUNDING AS IF THE RECIPIENT OF SUCH LOW-COST
   38  POWER HAD APPLIED FOR THE FUNDING DIRECTLY.
   39    18.  A. FOR THE PURPOSE OF FURNISHING THE STATE WITH SYSTEMATIC INFOR-
   40  MATION REGARDING THE STATUS AND THE ACTIVITIES  OF  THE  AUTHORITY,  THE
   41  AUTHORITY  SHALL  SUBMIT  TO THE GOVERNOR, THE CHAIRPERSON OF THE SENATE
   42  FINANCE COMMITTEE, THE  CHAIRPERSON  OF  THE  ASSEMBLY  WAYS  AND  MEANS
   43  COMMITTEE AND THE STATE COMPTROLLER, WITHIN NINETY DAYS AFTER THE END OF
   44  ITS  FISCAL YEAR, A COMPLETE AND DETAILED ANNUAL REPORT ON EACH ECONOMIC
   45  DEVELOPMENT POWER PROGRAM  IT  ADMINISTERS.  SUCH  ANNUAL  REPORT  SHALL
   46  INCLUDE, BUT NOT BE LIMITED TO, THE FOLLOWING INFORMATION:
   47    (I)  THE  NUMBER OF COMMERCIAL/INDUSTRIAL RECIPIENTS OF ECONOMIC POWER
   48  PROGRAM BENEFITS, WHERE THE ECONOMIC REGION CLIENT IS LOCATED, WHAT TYPE
   49  AND HOW MUCH ASSISTANCE IS PROVIDED, MEGAWATTS OF  ELECTRICITY  AWARDED,
   50  LENGTH  OF  CURRENT  CONTRACT,  CURRENT CONTRACT COMPLIANCE STATUS, LAST
   51  AUDIT, NUMBER OF JOBS RETAINED AND/OR ADDED IN THE FISCAL YEAR, APPROXI-
   52  MATE ENERGY EFFICIENCY SAVINGS AND  AMOUNT  OF  POWER  REALLOCATED  FROM
   53  PREVIOUS YEARS DUE TO FORFEITED BENEFITS;
   54    (II)  COST  TO  THE  AUTHORITY  TO  PROVIDE ECONOMIC DEVELOPMENT POWER
   55  PROGRAMS DURING THE PREVIOUS FISCAL YEAR; AND
       A. 10053--A                        14
    1    (III) SOURCES, TYPES AND COSTS OF POWER  OBTAINED  FOR  EACH  ECONOMIC
    2  DEVELOPMENT POWER PROGRAM IT ADMINISTERS, INCLUDING, BUT NOT LIMITED TO,
    3  AN EXPLANATION OF HOW POWER IS OBTAINED BY THE AUTHORITY TO SUPPORT EACH
    4  ECONOMIC  DEVELOPMENT  POWER  PROGRAM  IT ADMINISTERS, THE PERCENTAGE OF
    5  LONG-  AND  SHORT-TERM  POWER PURCHASE AGREEMENTS USED AND DAY-AHEAD AND
    6  SPOT MARKET PURCHASES, AND SUMMARY OF NEW YORK INDEPENDENT SYSTEM OPERA-
    7  TOR (NYISO) CHARGES PAID BY AUTHORITY CUSTOMERS.
    8    B. THE COMPTROLLER SHALL BE  CHARGED  WITH  SEEING  THAT  THE  REPORTS
    9  MANDATED  IN THIS SUBDIVISION ARE FILED ON TIME AND THAT THEY ARE SUFFI-
   10  CIENTLY COMPREHENSIVE. THE COMPTROLLER SHALL REPORT ANY DEFICIENCIES  TO
   11  THE  GOVERNOR  AND TO THE LEGISLATIVE CHAIRS NAMED IN SUBDIVISION ONE OF
   12  THIS SECTION.
   13    S 15. Severability clause. If any clause, sentence, paragraph,  subdi-
   14  vision,  section  or  part of this act shall be adjudged by any court of
   15  competent jurisdiction to be invalid, such judgment  shall  not  affect,
   16  impair,  or  invalidate  the remainder thereof, but shall be confined in
   17  its operation to the clause, sentence, paragraph,  subdivision,  section
   18  or part thereof directly involved in the controversy in which such judg-
   19  ment shall have been rendered. It is hereby declared to be the intent of
   20  the  legislature  that  this  act  would  have been enacted even if such
   21  invalid provisions had not been included therewith.
   22    S 16. This act shall take effect immediately; provided that the amend-
   23  ments to section 183 of the economic development law  made  by  sections
   24  two,  seven,  eight and nine of this act shall be subject to the expira-
   25  tion and reversion of such section pursuant to section 9 of chapter  316
   26  of  the  laws of 1997, as amended, when upon such date the provisions of
   27  section ten of this act shall take effect; and provided,  further,  that
   28  the  amendments  to  section 189 of the economic development law made by
   29  sections three and four of this act shall not affect the repeal of  such
   30  section and shall be deemed repealed therewith.
feedback