LBD16438-06-0
S. 7573 2
[Three] FIVE members shall constitute a quorum for the purposes of
organizing the board and conducting the business thereof; and no actions
of the board may be taken except upon the affirmative vote of at least
[three] FIVE members. Videoconferencing may be used for attendance and
participation by members of the board. If videoconferencing is used the
board shall provide an opportunity for the public to attend, listen and
observe at any site at which a member participates. The public notice
for the meeting shall inform the public that [vidioconferencing] VIDEO-
CONFERENCING will be used, identify the locations for the meeting, and
state that the public has the right to attend the meeting at any of the
locations. Members of the board, except those who are employees or offi-
cers of the state, its authorities or agencies shall not receive a sala-
ry or other compensation, but shall be allowed the necessary and actual
expenses incurred in the performance of duties under this article.
S 2. Paragraphs 2 and 4 of subdivision (h) of section 183 of the
economic development law, as amended by chapter 217 of the laws of 2009,
are amended to read as follows:
2. During the period commencing on November first, two thousand five
and ending on [May fifteenth] JUNE THIRTIETH, two thousand [ten] ELEVEN
eligible businesses shall only include customers served under the power
authority of the state of New York's high load factor, economic develop-
ment power and other business customers served by political subdivisions
of the state authorized by law to engage in the distribution of electric
power that were authorized to be served by the authority from the
authority's former James A. Fitzpatrick nuclear power plant as of the
effective date of this subdivision whose power prices may be subject to
increase before [May fifteenth] JUNE THIRTIETH, two thousand [ten] ELEV-
EN. Provided, however, that the total amount of megawatts of replace-
ment and preservation power which, due to the extension of the energy
cost savings benefits, are not relinquished by or withdrawn from a
recipient shall be deemed to be relinquished or withdrawn for purposes
of offering such megawatts by the authority for reallocation pursuant to
subdivision thirteen of section one thousand five of the public authori-
ties law. Provided, further, that for any such reallocation, the author-
ity shall maintain the same energy cost savings benefit level for all
eligible businesses using any available authority resources as deemed
feasible and advisable by the trustees pursuant to section seven of part
U of chapter fifty-nine of the laws of two thousand six.
4. Applications for an energy cost savings benefit shall be in the
form and contain such information, exhibits and supporting data as the
board may prescribe. The board shall review the applications received
and shall determine the applications which best meet the criteria estab-
lished for the benefits pursuant to this subdivision and it shall recom-
mend such applications to the power authority of the state of New York
with such terms and conditions as it deems appropriate; provided, howev-
er, that for energy cost savings benefits granted on or after [June
thirtieth] MAY FIFTEENTH, two thousand [nine] TEN through [May
fifteenth] JUNE THIRTIETH, two thousand [ten] ELEVEN, the board shall
expedite the awarding of such benefits and shall defer the review of
compliance with such criteria until after the applicant has been awarded
an energy cost savings benefit. Such terms and conditions shall include
reasonable provisions providing for the partial or complete withdrawal
of the energy cost savings benefit in the event the recipient fails to
maintain mutually agreed upon commitments that may include, but are not
limited to, levels of employment, capital investment and power utiliza-
tion. Recommendation for approval of an energy cost savings benefit
S. 7573 3
shall qualify an applicant to receive an energy cost savings benefit
from the power authority of the state of New York pursuant to the terms
and conditions of the recommendation. ANY ENERGY COST SAVINGS BENEFIT
WHICH IS RELINQUISHED OR WITHDRAWN AFTER THE EFFECTIVE DATE OF THE CHAP-
TER OF THE LAWS OF TWO THOUSAND TEN WHICH AMENDED THIS PARAGRAPH SHALL
BE AVAILABLE FOR REALLOCATION TO ELIGIBLE BUSINESSES AS DEFINED IN PARA-
GRAPH TWO OF THIS SUBDIVISION PURSUANT TO THE PROVISIONS OF THIS ARTI-
CLE.
S 3. The opening paragraph of paragraph 5 of subdivision (a) of
section 189 of the economic development law, as amended by chapter 217
of the laws of 2009, is amended to read as follows:
"Power for jobs electricity savings reimbursements" shall mean
payments made by the power authority of the state of New York as recom-
mended by the board to recipients of allocations of power under phases
four and five of the power for jobs program for a period of time until
November thirtieth, two thousand four, subsequent to the expiration of
their phase four or five power for jobs contract provided however that
any power for jobs recipient may choose to receive an electricity
savings reimbursement as a substitute for a contract extension for the
period from the date the recipient's contract expires through [May
fifteenth] JUNE THIRTIETH, two thousand [ten] ELEVEN. The "basic
reimbursement" is an amount that when credited against the recipient's
actual "unit cost of electricity" during a quarter (meaning the cost for
commodity and delivery per kilowatt-hour for the quantity of electricity
purchased and delivered under the power for jobs program during a simi-
lar period in the final year of the recipient's contract), results in an
effective unit cost of electricity during the quarter equal to the aver-
age unit cost of electricity such recipient paid during the final year
of the contract for power allocated under phase four or five of the
power for jobs program, PROVIDED HOWEVER THAT NOTWITHSTANDING THE FORE-
GOING, FOR THE PERIOD MAY SIXTEENTH, TWO THOUSAND TEN THROUGH JUNE THIR-
TIETH, TWO THOUSAND ELEVEN, THE BASIC REIMBURSEMENT SHALL BE AN AMOUNT
SUCH THAT THE RECIPIENT RECEIVES UNIT (PER KILOWATT-HOUR) ELECTRICITY
SAVINGS EQUIVALENT TO THE AVERAGE UNIT ELECTRICITY SAVINGS RECEIVED
DURING THE TWELVE MONTHS ENDING ON MAY FIFTEENTH, TWO THOUSAND TEN.
S 4. Subdivisions (f) and (l) of section 189 of the economic develop-
ment law, as amended by chapter 217 of the laws of 2009, are amended to
read as follows:
(f) Eligibility. The board shall recommend applications for allo-
cations of power under the power for jobs program to or for the use of
businesses which normally utilize a minimum peak electric demand in
excess of four hundred kilowatts; provided, however, that up to one
hundred megawatts of power available for allocation during the initial
three phases of the power for jobs program may be recommended for allo-
cations to not-for-profit corporations and to small businesses; and,
provided, further that up to seventy-five megawatts of power available
for allocation during the fourth phase of the program may be recommended
for allocations to not-for-profit corporations and to small businesses.
The board may require small businesses that normally utilize a minimum
peak electric demand of less than one hundred kilowatts to aggregate
their electric demand in amounts of no less than one hundred kilowatts,
for the purposes of applying to the board for an allocation of power.
The board shall recommend allocations of the additional three hundred
megawatts available during the fourth phase of the program to any such
eligible applicant, including any recipient of power allocated during
the first phase of the program. The board shall recommend allocations of
S. 7573 4
the additional one hundred eighty-three megawatts available during the
fifth phase of the program to any eligible applicant, including any
recipient of power allocated during the second and third phases of the
program; provided, however, that the term of contracts for allocations
under the fifth phase of the program shall in no case extend beyond [May
fifteenth] JUNE THIRTIETH, two thousand [ten] ELEVEN. Notwithstanding
any provision of law to the contrary, and, in particular, the provisions
of this chapter concerning the terms of contracts for allocations under
the power for jobs program, the terms of any contract with a recipient
of power allocated under phase two of the power for jobs program that
has expired or will expire on or before the thirty-first day of August,
two thousand two, may be extended by the power authority of the state of
New York for an additional period of three months effective on the date
of such expiration, pending the filing and approval of an application by
such recipient for an allocation under the fifth phase of the program.
The term of any new contract with such recipient under the fifth phase
of the program shall be deemed to include any three month contract
extension made pursuant to this subdivision and the termination date of
any such new contract under phase five shall be no later than if such
new contract had commenced upon the expiration of the recipient's
original phase two contract. The terms of any contract with a recipient
of power allocated under phase four and/or phase five of the power for
jobs program that has expired or will expire on or before the thirty-
first day of December, two thousand five, may be extended by the power
authority of the state of New York from a date beginning no earlier than
the first day of December, two thousand four and extending through [May
fifteenth] JUNE THIRTIETH, two thousand [ten] ELEVEN.
(l) The board shall solicit and review applications for the power for
jobs electricity savings reimbursements and contract extensions from
recipients of power for jobs allocations under phases four and five of
the program for the award of such reimbursements and/or contract exten-
sions. The board may prescribe a simplified form and content for an
application for such reimbursements or extensions. An applicant shall be
eligible for such reimbursements and/or extensions only if it is in
compliance with and agrees to continue to meet the job retention and
creation commitments set forth in its prior power for jobs contract, or
such other commitments as the board deems reasonable; provided, however,
that for the power for jobs electricity savings reimbursements and
contract extensions granted on or after June thirtieth, two thousand
nine through [May fifteenth] JUNE THIRTIETH, two thousand [ten] ELEVEN,
the board shall expedite the awarding of such reimbursements and/or
extensions and shall defer the review of compliance with such commit-
ments until after the applicant has been awarded a power for jobs elec-
tricity savings reimbursement and/or contract extension. The board shall
review such applications and make recommendations for the award: 1. of
such reimbursements through the power authority of the state of New York
for a period of time up to November thirtieth, two thousand four, and 2.
of such contract extensions or reimbursements as applied for by the
recipient for a period of time beginning December first, two thousand
four and ending [May fifteenth] JUNE THIRTIETH, two thousand [ten] ELEV-
EN. At no time shall a recipient receive both a reimbursement and exten-
sion after December first, two thousand four. The power authority of the
state of New York shall receive notification from the board regarding
the award of power for jobs electricity savings reimbursements and/or
contract extensions. ANY POWER FOR JOBS ALLOCATION WHICH IS RELIN-
QUISHED OR WITHDRAWN AFTER THE EFFECTIVE DATE OF THE CHAPTER OF THE LAWS
S. 7573 5
OF TWO THOUSAND TEN WHICH AMENDED THIS SUBDIVISION SHALL BE AVAILABLE
FOR REALLOCATION TO CUSTOMERS ELIGIBLE FOR POWER FOR JOBS ALLOCATIONS AS
DEFINED IN SUBDIVISION (F) OF THIS SECTION.
S 5. Section 9 of 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 development, as amended by chapter
217 of the laws of 2009, is amended to read as follows:
S 9. This act shall take effect immediately and shall expire and be
deemed repealed [May 15, 2010] JUNE 30, 2011.
S 6. Subdivision 9 of section 186-a of the tax law, as amended by
chapter 217 of the laws of 2009, is amended to read as follows:
9. Notwithstanding any other provision of this chapter or any other
law to the contrary, for taxable periods nineteen hundred ninety-seven
through and including two thousand [ten] ELEVEN, any utility which
delivers power under the power for jobs program, as established by
section one hundred eighty-nine of the economic development law, shall
be allowed a credit, subject to the limitations thereon contained in
this subdivision, against the tax imposed under this section equal to
net lost revenues from the delivery of power under such power for jobs
program. Net lost revenues means the "net receipts" less "net utility
revenue" from such delivery of power. For purposes of this subdivision,
"net receipts" shall mean the amount that the utility would have other-
wise received from customers receiving power pursuant to allocations by
the New York state economic development power allocation board in
accordance with section one hundred eighty-nine of the economic develop-
ment law, or from customers whose allocation has been transferred to an
energy service company, or from energy service companies to which such
allocation has been transferred, pursuant to its tariff supervised by
the public service commission for substantially comparable service
otherwise applicable to such customers or energy service companies in
the absence of such designation, less the utility's annual average
incremental short-term variable and capacity costs of providing such
power in the absence of such purchase. For the purposes of this subdivi-
sion, "net utility revenue" shall mean the revenues the utility actually
receives in accordance with such section one hundred eighty-nine from
such customers so designated by the New York state economic development
power allocation board or from customers whose allocation has been
transferred to an energy service company, or from the energy service
companies to which a power for jobs allocation has been transferred,
less the utility's cost of such power under such program. Provided,
however, that any credit under this section shall be used only with
respect to the same taxable year during which such credit arose and
shall not be capable of being carried forward or backward to any other
taxable period. Nor shall any credit be allowed to any utility for the
total amount of power, expressed in kilowatt hours, purchased by the
customers of such utility under such program during the taxable period
that exceeds the prorated "baseline energy use" by all customers of that
utility purchasing power under such program during the taxable period.
"Baseline energy use" with respect to each customer shall mean the larg-
est amount of kilowatt hours of energy used by such customer during any
twelve consecutive month period occurring during the preceding thirty
months immediately preceding the New York state economic development
power allocation board's recommendation of such customer's application,
prorated to reflect the length of time of the customer's participation
in such program during the taxable period. Provided further, however,
that in accordance with subdivision (k) of section one hundred eighty-
S. 7573 6
nine of the economic development law no tax credit shall be available
for any revenue losses when a utility has declined to purchase power
allocated for sale under such program. No electric corporation shall be
allowed the tax credit authorized by this subdivision until it shall
file a certificate from the department of public service for the period
covered by the return verifying that the calculation of such tax credit
complies with this subdivision and the department of public service has
approved such certificate and forwarded a copy of such approved certif-
icate to the commissioner or any amended certificate resulting from the
need for correction. The credit allowed by this subdivision shall not be
applicable in calculating any other tax imposed or authorized to be
imposed by this chapter or any other law, and the amount of the tax
surcharge imposed under section one hundred eighty-six-c of this article
shall be calculated and payable as if the credit provided for by this
subdivision were not allowed.
S 7. Section 11 of 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, as
amended by chapter 217 of the laws of 2009, is amended to read as
follows:
S 11. This act shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 2006; provided,
however, that the amendments to section 183 of the economic development
law and subparagraph 2 of paragraph g of the ninth undesignated para-
graph of section 1005 of the public authorities law made by sections two
and six of this act shall not affect the expiration of such section and
subparagraph, respectively, and shall be deemed to expire therewith;
provided further, however, that the amendments to section 189 of the
economic development law and subdivision 9 of section 186-a of the tax
law made by sections three, four, five and ten of this act shall not
affect the repeal of such section and subdivision, respectively, and
shall be deemed to be repealed therewith; provided further, however,
that section seven of this act shall expire and be deemed repealed [May
15, 2010] JUNE 30, 2011.
S 8. Subdivision (b) of section 183 of the economic development law,
as amended by chapter 316 of the laws of 1997, is amended to read as
follows:
(b) To evaluate applications for allocations of economic development
power and of power under the power for jobs program and to make recom-
mendations with respect to such proposed allocations; PROVIDED HOWEVER,
THAT THE BOARD SHALL NOT ACCEPT ANY NEW APPLICATION THAT REQUESTS AN
ALLOCATION OF ECONOMIC DEVELOPMENT POWER OR POWER UNDER THE POWER FOR
JOBS PROGRAM AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND TEN; AND PROVIDED
FURTHER THAT THE BOARD SHALL NOT EXTEND THE TERM OF ANY CONTRACT FOR AN
ALLOCATION UNDER THE ECONOMIC DEVELOPMENT PROGRAM THAT WILL EXPIRE ON OR
BEFORE JUNE THIRTIETH, TWO THOUSAND ELEVEN FOR THE PURPOSE OF PROVIDING
AN ALLOCATION AFTER JUNE THIRTIETH, TWO THOUSAND ELEVEN.
S 9. Section 183 of the economic development law is amended by adding
a new subdivision (i) to read as follows:
(I) TO SOLICIT APPLICATIONS FOR AWARDS UNDER THE ECONOMIC BENEFIT
POWER PROGRAM AND MAKE RECOMMENDATIONS TO THE POWER AUTHORITY OF THE
STATE OF NEW YORK FOR AWARDS UNDER SUCH PROGRAM IN THE MANNER AUTHORIZED
IN SECTION ONE HUNDRED EIGHTY-EIGHT-A OF THIS ARTICLE.
S 10. Subdivision (g) of section 183 of the economic development law,
as amended by chapter 226 of the laws of 2002, is amended to read as
follows:
S. 7573 7
(g) [The] EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, THE board
shall solicit applications for economic development power and for power
under the power for jobs program by public notice. Such notice shall be
in the form of newspaper advertisements, press releases, and by such
other means as the board finds appropriate. Solicitations of preliminary
applications for power under the power for jobs program shall begin
promptly after the effective date of chapter three hundred sixteen of
the laws of nineteen hundred ninety-seven establishing such program. The
board shall solicit applications for the additional three hundred mega-
watts of power available during the fourth phase of the program by
public notice, written notification to each recipient of power allocated
during the first phase of the program, and such other means as the board
finds appropriate. Solicitations of applications for such three hundred
megawatts of power available in phase four of the program shall begin
promptly after the effective date of part KK of chapter sixty-three of
the laws of two thousand making such power available. The board shall
solicit applications for the additional one hundred eighty-three mega-
watts of power available during the fifth phase of the program by public
notice, written notification to each recipient of power allocated during
the second and third phases of the program, and by such other means as
the board finds appropriate. Solicitations for such one hundred eighty-
three megawatts of power available in phase five of the program shall
begin promptly after the effective date of the chapter of the laws of
two thousand two making such power available.
S 11. Section 183 of the economic development law, as added by chapter
32 of the laws of 1987, is amended to read as follows:
S 183. General powers and duties of the board. In furtherance of the
purposes set forth in this article, the board shall have the following
powers:
(a) To adopt, within one hundred twenty days after appointment, AND
AMEND FROM TIME TO TIME, AS NECESSARY, eligibility criteria and rules
and regulations, IN CONSULTATION WITH THE POWER AUTHORITY OF THE STATE
OF NEW YORK AND THE URBAN DEVELOPMENT CORPORATION, relating to the
activities of the board AS DESCRIBED IN AND CONSISTENT WITH THIS
ARTICLE.
(b) To evaluate applications for allocations of economic development
power and to make recommendations with respect to such proposed allo-
cations, PROVIDED HOWEVER, THAT THE BOARD SHALL NOT ACCEPT NEW APPLICA-
TIONS OR EXTEND ANY CONTRACTS FOR ALLOCATIONS OF ECONOMIC DEVELOPMENT
POWER TO EXTEND BEYOND JUNE THIRTIETH, TWO THOUSAND ELEVEN.
(c) [To evaluate economic development plans for the use of industrial
incentive awards submitted by the power authority of the state of New
York pursuant to this article.
(d) To provide advice and assistance when appropriate to applicants on
state economic development programs and services in addition to the
economic development power and industrial incentive awards specifically
provided for in this section.]
TO SOLICIT APPLICATIONS FOR AWARDS UNDER THE ECONOMIC BENEFIT POWER
PROGRAM, AND MAKE RECOMMENDATIONS TO THE POWER AUTHORITY OF THE STATE OF
NEW YORK FOR AWARDS UNDER SUCH PROGRAM IN THE MANNER AUTHORIZED IN
SECTION ONE HUNDRED EIGHTY-EIGHT-A OF THIS ARTICLE.
(D) WITH THE ASSISTANCE AND COOPERATION OF THE POWER AUTHORITY OF THE
STATE OF NEW YORK, THE URBAN DEVELOPMENT CORPORATION, AND THE NEW YORK
STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY, TO PROVIDE ADVICE AND
ASSISTANCE TO APPLICANTS WHERE APPROPRIATE, AND TO COORDINATE AND FACIL-
ITATE THE OPPORTUNITY FOR APPLICANTS TO AVAIL THEMSELVES OF ANY STATE OR
S. 7573 8
LOCAL ECONOMIC DEVELOPMENT PROGRAMS OTHER THAN THOSE PROVIDED FOR BY
THIS SECTION, FOR WHICH THEY MAY ALSO BE ELIGIBLE; IN SO DOING TO OPTI-
MIZE, TO THE EXTENT PRACTICABLE, THE USE OF AVAILABLE STATE ECONOMIC
DEVELOPMENT RESOURCES TO ACHIEVE THEIR DEDICATED PURPOSES IN A COORDI-
NATED MANNER, AS WELL AS THE ABILITY OF APPLICANTS TO INITIALLY ACCESS
AS MANY OF SUCH PROGRAMS AS POSSIBLE THROUGH A SINGLE STATE OFFICE OR
REPRESENTATIVE AND APPLICATIONS PROCESS.
(E) The [department, the] power authority of the state of New York,
[the urban development corporation, and all other state officers,
departments, boards, divisions and commissions] WITH THE ASSISTANCE OF
THE URBAN DEVELOPMENT CORPORATION AND THE DEPARTMENT OF ECONOMIC DEVEL-
OPMENT, shall render such services to the board [within their respective
functions], IN ADDITION TO THOSE PROVIDED FOR IN SUBDIVISION (D) OF THIS
SECTION, as may be requested by the board. IN ADDITION, EVERY AGENCY,
DEPARTMENT, OFFICE, DIVISION OR PUBLIC AUTHORITY OF THIS STATE SHALL
COOPERATE WITH THE BOARD AND FURNISH SUCH INFORMATION AND ASSISTANCE AS
THE BOARD DETERMINES IS REASONABLY NECESSARY TO ACCOMPLISH ITS PURPOSE.
[The board shall solicit applications for economic development power
by public notice. Such notice shall be in the form of newspaper adver-
tisements, press releases, and by such other means as the board finds
appropriate.]
S 12. The economic development law is amended by adding a new section
188-a to read as follows:
S 188-A. ECONOMIC BENEFIT POWER PROGRAM. 1. DEFINITIONS. FOR THE
PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING
MEANINGS:
(A) "APPLICABLE CRITERIA" SHALL MEAN THE CRITERIA SPECIFIED IN SUBDI-
VISION THREE OF THIS SECTION.
(B) "AUTHORITY" SHALL MEAN THE POWER AUTHORITY OF THE STATE OF NEW
YORK.
(C) "ECONOMIC BENEFIT POWER AWARD" OR "AWARD" SHALL MEAN AND CONSIST
OF EQUAL AMOUNTS OF (I) UP TO FOUR HUNDRED FIFTY-FIVE MEGAWATTS OF FIRM
HYDROELECTRIC POWER FROM THE NIAGARA AND SAINT LAWRENCE HYDROELECTRIC
PROJECTS TO BE WITHDRAWN AS OF JUNE FIRST, TWO THOUSAND TEN FROM UTILITY
CORPORATIONS THAT, AS OF MAY THIRTY-FIRST, TWO THOUSAND TEN, PURCHASED
SUCH POWER FOR THE BENEFIT OF THEIR DOMESTIC AND RURAL CONSUMERS
("ECONOMIC BENEFIT POWER HYDROPOWER"), AND (II) POWER PROCURED BY THE
AUTHORITY THROUGH A COMPETITIVE PROCUREMENT PROCESS, AUTHORITY SOURCES
(OTHER THAN THE NIAGARA AND SAINT LAWRENCE PROJECTS) OR THROUGH AN
ALTERNATE METHOD ("ECONOMIC BENEFIT POWER MARKET POWER").
(D) "ELIGIBLE APPLICANT" SHALL MEAN AN ELIGIBLE BUSINESS, ELIGIBLE
SMALL BUSINESS, OR ELIGIBLE NOT-FOR-PROFIT CORPORATION AS DEFINED IN
THIS SECTION, PROVIDED HOWEVER, THAT AN ELIGIBLE APPLICANT SHALL NOT
INCLUDE RETAIL BUSINESSES AS DEFINED BY THE BOARD, INCLUDING, WITHOUT
LIMITATION, SPORTS VENUES, GAMING OR ENTERTAINMENT-RELATED ESTABLISH-
MENTS OR PLACES OF OVERNIGHT ACCOMMODATION.
(E) "ELIGIBLE BUSINESS" SHALL MEAN A BUSINESS OTHER THAN A
NOT-FOR-PROFIT CORPORATION WHICH NORMALLY UTILIZES A MINIMUM PEAK ELEC-
TRIC DEMAND IN EXCESS OF FOUR HUNDRED KILOWATTS.
(F) "ELIGIBLE SMALL BUSINESS" SHALL MEAN A BUSINESS OTHER THAN A NOT-
FOR-PROFIT CORPORATION WHICH NORMALLY UTILIZES A MINIMUM PEAK ELECTRIC
DEMAND EQUAL TO OR LESS THAN FOUR HUNDRED KILOWATTS.
(G) "LOCAL DISTRIBUTOR OF ELECTRIC SERVICE" SHALL MEAN AN ELECTRIC
CORPORATION AS DEFINED IN SUBDIVISION THIRTEEN OF SECTION TWO OF THE
PUBLIC SERVICE LAW OR THE LONG ISLAND POWER AUTHORITY.
S. 7573 9
(H) "ELIGIBLE NOT-FOR-PROFIT CORPORATION" SHALL MEAN A CORPORATION
DEFINED IN SUBDIVISION FIVE OF PARAGRAPH (A) OF SECTION ONE HUNDRED TWO
OF THE NOT-FOR-PROFIT CORPORATION LAW.
2. APPLICATIONS. (A) THE BOARD SHALL SOLICIT APPLICATIONS FOR AWARDS
UNDER THE ECONOMIC BENEFIT POWER PROGRAM BY PUBLIC NOTICE BEGINNING ON
JANUARY FIRST, TWO THOUSAND ELEVEN. SUCH NOTICE MAY INCLUDE NEWSPAPER
ADVERTISEMENTS, PRESS RELEASES, WEBSITE POSTINGS, PAPER OR ELECTRONIC
MAILING, AND/OR SUCH OTHER FORM AS THE BOARD FINDS APPROPRIATE IN
CONSULTATION WITH THE AUTHORITY.
(B) APPLICATIONS FOR THE ECONOMIC BENEFIT POWER PROGRAM SHALL BE IN
THE FORM AND CONTAIN SUCH INFORMATION, EXHIBITS AND SUPPORTING DATA AS
THE BOARD PRESCRIBES IN CONSULTATION WITH THE AUTHORITY. A COPY OF EACH
APPLICATION RECEIVED SHALL BE MADE AVAILABLE FOR REVIEW BY EACH BOARD
MEMBER.
(C) SUBJECT TO CONFIDENTIALITY REQUIREMENTS, UPON RECEIPT OF EACH
APPLICATION BY THE AUTHORITY, THE AUTHORITY SHALL PROMPTLY NOTIFY BY
ELECTRONIC MEANS, INCLUDING WEB SITE POSTINGS AND SUCH OTHER METHODS THE
BOARD DEEMS APPROPRIATE IN CONSULTATION WITH THE AUTHORITY, THE GOVER-
NOR, THE SPEAKER OF THE ASSEMBLY, THE MINORITY LEADER OF THE ASSEMBLY,
THE TEMPORARY PRESIDENT OF THE SENATE, THE MINORITY LEADER OF THE
SENATE, AND EACH MEMBER OF THE STATE LEGISLATURE IN WHOSE DISTRICT ANY
PORTION OF THE FACILITY OWNED OR OPERATED BY THE APPLICANT IS LOCATED.
SUCH NOTICE SHALL PROVIDE THE NAME AND A DESCRIPTION OF THE APPLICANT,
AND THE ADDRESS OF THE APPLICANT'S FACILITIES THAT WOULD RECEIVE AN
AWARD UNDER THE PROGRAM. THE AUTHORITY SHALL ALSO DEVELOP A LISTING
WHICH CONTAINS THE NAME AND A DESCRIPTION OF EACH APPLICANT, THE AWARD
SOUGHT BY EACH APPLICANT, AND THE ADDRESS OF THE FACILITIES FOR WHICH
THE APPLICANT SEEKS THE AWARD, AND MAKE THE LISTING AVAILABLE FOR PUBLIC
REVIEW ON THE AUTHORITY'S WEBSITE.
3. REVIEW, APPLICABLE CRITERIA AND RECOMMENDATIONS. (A) THE BOARD
SHALL REVIEW APPLICATIONS SUBMITTED UNDER THE ECONOMIC BENEFIT POWER
PROGRAM. THE BOARD SHALL MAKE AN INITIAL DETERMINATION OF WHETHER THE
APPLICANT IS AN ELIGIBLE APPLICANT, OR WHETHER A CURRENT APPLICANT
CONTINUES TO BE ELIGIBLE. THE BOARD MAY RECOMMEND TO THE AUTHORITY THAT
THE ECONOMIC BENEFIT POWER PROGRAM AWARD BE AWARDED TO AN APPLICANT, OR
THAT AN EXISTING REWARD BE EXTENDED OR RENEWED, BASED ON AN APPLICATION
OF THE FOLLOWING CRITERIA WHICH SHALL BE CONSIDERED IN THE AGGREGATE AND
NO ONE OF WHICH SHALL BE PRESUMPTIVELY DETERMINATIVE:
(I) THE SIGNIFICANCE OF THE COST OF ELECTRICITY TO THE APPLICANT'S
OVERALL COST OF DOING BUSINESS, AND THE IMPACT THAT AN ECONOMIC BENEFIT
POWER AWARD WILL HAVE ON THE APPLICANT'S OPERATING COSTS;
(II) THE EXTENT TO WHICH AN ECONOMIC BENEFIT POWER AWARD WILL RESULT
IN NEW CAPITAL INVESTMENT IN THE STATE BY THE APPLICANT, THE EXTENT TO
WHICH THE APPLICANT WILL AGREE TO COMMIT TO MAKING NEW CAPITAL INVEST-
MENT AS A CONDITION TO RECEIVING AN ECONOMIC BENEFIT POWER AWARD, AND
ANY PREVIOUS CAPITAL INVESTMENT, AT THE LOCATION OR ELSEWHERE IN THE
STATE, WHETHER UNDERTAKEN BY THE APPLICANT UNDER OTHER ECONOMIC DEVELOP-
MENT PROGRAMS OR OTHERWISE;
(III) THE SIZE OF THE APPLICANT'S TOTAL PAYROLL (SALARY, BENEFITS AND
THE NUMBER AND NATURE OF JOBS) AT THE FACILITY THAT WOULD RECEIVE THE
AWARD;
(IV) THE NUMBER OF JOBS THAT WILL BE CREATED OR RETAINED WITHIN THE
STATE IN RELATION TO THE REQUESTED AWARD, AND THE EXTENT TO WHICH THE
APPLICANT WILL AGREE TO COMMIT TO CREATING OR RETAINING SUCH JOBS AS A
CONDITION TO RECEIVING AN ECONOMIC BENEFIT POWER AWARD;
S. 7573 10
(V) WHETHER THE APPLICANT, DUE TO THE COST OF ELECTRICITY, IS AT RISK
OF CLOSING OR CURTAILING FACILITIES OR OPERATIONS IN THE STATE, RELOCAT-
ING FACILITIES OR OPERATIONS OUT OF THE STATE, OR LOSING A SIGNIFICANT
NUMBER OF JOBS IN THE STATE, IN THE ABSENCE OF AN ECONOMIC BENEFIT POWER
AWARD;
(VI) THE SIGNIFICANCE OF THE APPLICANT'S FACILITY THAT WOULD RECEIVE
THE BENEFIT OF THE AWARD TO THE ECONOMY OF THE AREA IN WHICH SUCH FACIL-
ITY IS LOCATED OR TO THE STATE AS A WHOLE, INCLUDING THE EXTENT TO WHICH
THE AWARD IS LIKELY TO STIMULATE OR CREATE OTHER ECONOMIC ACTIVITY IN
THE REGION OR STATE;
(VII) THE EXTENT TO WHICH THE APPLICANT HAS PREVIOUSLY UNDERTAKEN
ENERGY AUDITS AND/OR INVESTED IN ENERGY EFFICIENCY MEASURES INCLUDING
CONSIDERATION OF THE TIMING OF SUCH AUDITS OR MEASURES, THE AMOUNT OF
INVESTMENTS IN ENERGY EFFICIENCY RELATIVE TO THE SIZE, NATURE AND
HISTORIC ENERGY CONSUMPTION, AND OTHER CAPITAL INVESTMENTS OF THE BUSI-
NESS, THE RELATIVE IMPROVEMENT IN ENERGY EFFICIENCY AND/OR NET ENERGY OR
FINANCIAL SAVINGS RESULTING FROM SUCH INVESTMENTS, AND SUCH OTHER
FACTORS AS THE BOARD MAY CONSIDER APPROPRIATE, AND/OR THE EXTENT TO
WHICH THE APPLICANT WILL AGREE, IF RECOMMENDED BY THE BOARD, TO COMMIT
TO MAKING COST EFFECTIVE TANGIBLE INVESTMENTS IN ENERGY EFFICIENCY MEAS-
URES;
(VIII) THE EXTENT TO WHICH THE APPLICANT'S OPERATIONS ARE CONSISTENT
WITH THE POLICIES AND GOALS OF THE STATE ENERGY PLAN;
(IX) THE EXTENT TO WHICH THE APPLICANT PREVIOUSLY RECEIVED BENEFITS
UNDER OTHER POWER-RELATED PROGRAMS OF THE AUTHORITY, AND THE APPLICANT'S
PRIOR PERFORMANCE UNDER SUCH PROGRAMS WHERE APPLICABLE;
(X) IN THE CASE OF A NOT-FOR-PROFIT CORPORATION, THE EXTENT TO WHICH
IT PROVIDES CRITICAL SERVICES OR SUBSTANTIAL BENEFITS TO THE LOCAL
COMMUNITY;
(XI) THE EXTENT TO WHICH AN AWARD IS CONSISTENT WITH STATE, REGIONAL
AND LOCAL ECONOMIC DEVELOPMENT STRATEGIES IN THE AREA IN WHICH THE BUSI-
NESS IS LOCATED OR TO BE LOCATED;
(XII) THE EXTENT TO WHICH AN AWARD MIGHT RESULT IN INEQUITY FOR AN
APPLICANT AS COMPARED TO ITS COMPETITORS WITHIN THE STATE;
(XIII) IMPACT OF CURRENT ECONOMIC CONDITIONS ON THE APPLICANT; AND
(XIV) THE BOARD MAY ALSO CONSIDER THE EXTENT TO WHICH THE APPLICANT
HAS INVESTED IN ONSITE POWER GENERATION FOR COMBINED HEAT AND POWER
AND/OR DISTRIBUTED GENERATION PURPOSES OR WILL AGREE, IF RECOMMENDED BY
THE BOARD, TO CONSIDER MAKING COST EFFECTIVE TANGIBLE INVESTMENTS IN
ONSITE POWER GENERATION FOR COMBINED HEAT AND POWER AND/OR DISTRIBUTED
GENERATION PURPOSES AS IDENTIFIED PURSUANT TO SUBDIVISION SEVENTEEN OF
SECTION ONE THOUSAND FIVE OF THE PUBLIC AUTHORITIES LAW AS A CONDITION
TO RECEIVING AN AWARD; PROVIDED HOWEVER, THAT IN NO EVENT SHALL THE
ABSENCE OF SUCH INVESTMENT OR CONSIDERATION COUNT AGAINST THE APPLI-
CANT'S ELIGIBILITY FOR AN AWARD.
(B) A RECOMMENDATION BY THE BOARD THAT THE AUTHORITY PROVIDE AN
ECONOMIC BENEFIT POWER PROGRAM AWARD OR THE RENEWAL OR EXTENSION OF AN
EXISTING AWARD TO AN ELIGIBLE APPLICANT SHALL INCLUDE: (1) A DESCRIPTION
OF THE AWARD THAT THE BOARD HAS DETERMINED SHOULD BE AWARDED TO SUCH
APPLICANT, PROVIDED HOWEVER, THAT THE BOARD MAY RECOMMEND AN AWARD THAT
DIFFERS FROM THE AWARD REQUESTED BY AN ELIGIBLE APPLICANT; (2) AN EFFEC-
TIVE TERM OF CONTRACT BETWEEN THE ELIGIBLE APPLICANT AND THE AUTHORITY
WHICH SHALL NOT EXCEED SEVEN YEARS, PROVIDED HOWEVER THAT THE TERM OF
ANY SUCH CONTRACT SHALL NOT BECOME EFFECTIVE BEFORE JULY FIRST, TWO
THOUSAND ELEVEN; (3) THE DATE OF THE MANDATORY ANNUAL COMPLIANCE REVIEW
AT WHICH TIME, AND ANNUALLY AT THE SAME TIME EACH YEAR THEREAFTER, THE
S. 7573 11
ELIGIBLE APPLICANT, IF FOUND IN COMPLIANCE MAY APPLY FOR A SUBSEQUENT
CONTRACT FOR AN ADDITIONAL TERM OF ONE YEAR TO GO INTO EFFECT AT THE
CONCLUSION OF THE THEN CURRENT CONTRACT AS LONG AS COMPLIANCE CONTINUES
THROUGH THE CONCLUSION OF SUCH CONTRACT; AND (4) SUCH OTHER TERMS AND
CONDITIONS THAT THE BOARD RECOMMENDS AS APPROPRIATE. SUCH TERMS AND
CONDITIONS SHALL INCLUDE PROVISIONS FOR EFFECTIVE PERIODIC AUDITS OF
PROGRAM PARTICIPANTS FOR THE PURPOSE OF DETERMINING CONTRACT AND PROGRAM
COMPLIANCE, AND THE PARTIAL OR COMPLETE WITHDRAWAL OF AN ECONOMIC BENE-
FIT POWER PROGRAM AWARD IN THE CASE OF A PROGRAM PARTICIPANT THAT FAILS
TO MAINTAIN MUTUALLY AGREED UPON COMMITMENTS, INCLUDING BUT NOT LIMITED
TO LEVELS OF EMPLOYMENT, POWER UTILIZATION, CAPITAL INVESTMENTS, AND
ENERGY EFFICIENCY MEASURES.
(C) THE BOARD MAY BASE ITS RECOMMENDATION ON WHICH ELIGIBLE APPLICANTS
IT DETERMINES BEST MEET THE APPLICABLE CRITERIA; PROVIDED HOWEVER THAT
THE BOARD SHALL SET ASIDE A PORTION OF THE BENEFITS AVAILABLE UNDER THE
ECONOMIC BENEFIT POWER PROGRAM IN AN AMOUNT NOT LESS THAN ONE HUNDRED
MEGAWATTS FOR ELIGIBLE SMALL BUSINESSES AND ELIGIBLE NOT-FOR-PROFIT
CORPORATIONS; AND PROVIDED FURTHER THAT THE BOARD SHALL SET ASIDE A
PORTION OF THE BENEFITS AVAILABLE UNDER THE PROGRAM IN AN AMOUNT NOT
LESS THAN ONE HUNDRED MEGAWATTS FOR ELIGIBLE HIGH LOAD FACTOR MANUFAC-
TURERS AS DEFINED IN THE FOURTH UNDESIGNATED PARAGRAPH OF SECTION ONE
THOUSAND FIVE OF THE PUBLIC AUTHORITIES LAW.
(D) A RECOMMENDATION FOR AN ECONOMIC BENEFIT POWER PROGRAM AWARD SHALL
QUALIFY AN APPLICANT TO ENTER INTO A CONTRACT, WITH THE AUTHORITY TO
RECEIVE SUCH AWARD FROM THE AUTHORITY PURSUANT TO THE TERMS AND CONDI-
TIONS OF THE RECOMMENDATION OR ON SUCH OTHER TERMS AS THE AUTHORITY
DETERMINES TO BE APPROPRIATE. IN THE EVENT THAT THE AWARD INCLUDES THE
PROVISION OF ENERGY RELATED PROJECTS, PROGRAMS AND SERVICES AS DEFINED
IN SUBDIVISION SIXTEEN OF SECTION ONE THOUSAND FIVE OF THE PUBLIC
AUTHORITIES LAW, THE CONTRACT SHALL ALLOW FOR REIMBURSEMENT FOR COSTS TO
AN ENTITY OTHER THAN THE POWER AUTHORITY OF THE STATE OF NEW YORK SO
LONG AS SUCH COSTS ARE DEEMED REASONABLE AND APPROPRIATE. SUCH
CONTRACTS SHALL PROVIDE THAT THE LOCAL DISTRIBUTOR OF ELECTRIC SERVICE
WILL PROVIDE CUSTOMER AND BILLING SERVICES UPON MUTUALLY AGREED TERMS
AND CONDITIONS.
(E) UPON APPROVAL OR DENIAL OF ANY APPLICATION FOR AN ECONOMIC BENEFIT
POWER PROGRAM AWARD, THE BOARD SHALL ISSUE IN WRITING A STATEMENT OF ITS
FINDINGS AND CONCLUSIONS WITH RESPECT TO SUCH APPLICATION AND THE
REASONS FOR ITS APPROVAL OR DENIAL.
(F) (1) THE BOARD SHALL SUBMIT TO THE DIRECTOR OF THE BUDGET, THE
CHAIRPERSON OF THE SENATE FINANCE COMMITTEE AND THE CHAIRPERSON OF THE
ASSEMBLY WAYS AND MEANS COMMITTEE AN EVALUATION OF THE SUCCESS OF EACH
ECONOMIC DEVELOPMENT POWER PROGRAM IT ADMINISTERS PREPARED BY AN INDE-
PENDENT THIRD PARTY. SUCH EVALUATION SHALL DETERMINE WHETHER THE
SERVICES PROVIDED HAVE HELPED RECIPIENTS TO SUCCEED, BASED ON A COMPAR-
ISON OF THE PERFORMANCE OF THE RECIPIENTS AGAINST THE NORMS OF THEIR
SPECIFIC INDUSTRY, AND SHALL ASSESS THE EFFECTIVENESS, IF ANY, OF EACH
ECONOMIC DEVELOPMENT POWER PROGRAM. SUCH AN EVALUATION SHALL BE SUBMIT-
TED BY DECEMBER THIRTY-FIRST, TWO THOUSAND FOURTEEN AND BY DECEMBER
THIRTY-FIRST EVERY FIVE YEARS THEREAFTER.
(2) BETWEEN EVALUATION DUE DATES, THE BOARD SHALL MAINTAIN THE NECES-
SARY RECORDS AND DATA REQUIRED TO SATISFY SUCH EVALUATION REQUIREMENTS
AND TO SATISFY INFORMATION REQUESTS RECEIVED FROM THE DIRECTOR OF THE
BUDGET, THE CHAIRPERSON OF THE SENATE FINANCE COMMITTEE AND THE CHAIR-
PERSON OF THE ASSEMBLY WAYS AND MEANS COMMITTEE BETWEEN SUCH EVALUATION
DUE DATES.
S. 7573 12
S 13. The opening paragraph of subdivision 5 of section 1005 of the
public authorities law, as amended by chapter 294 of the laws of 1968,
is amended to read as follows:
To develop, maintain, manage and operate those parts of the Niagara
and Saint Lawrence hydroelectric projects owned or controlled by it in
such manner as to give effect to the policy hereby declared (and all
plans and acts, and all contracts for the use, sale, transmission and
distribution of the power generated by such projects, shall be made in
the light of, consistent with and subject to this policy), namely, that
such projects shall be in all respects for the aid, improvement, and
benefit of commerce and navigation in, through, along and past the
Niagara river, the Saint Lawrence river and the international rapids
section thereof, and that in the development of hydro-electric power
therefrom such projects shall be considered primarily as for the benefit
of the people of the state as a whole [and particularly the domestic and
rural consumers to whom the power can economically be made available,
and accordingly that sale to and use by industry shall be a secondary
purpose, to be utilized principally to secure a sufficiently high load
factor and revenue returns to permit domestic and rural use at the
lowest possible rates and in such manner as to encourage increased
domestic and rural use of electricity]. In furtherance of this policy
and to secure a wider distribution of such power and use of the greatest
value to the general public of the state, the authority shall in addi-
tion to other methods which it may find advantageous make provision so
that municipalities and other political [sub-divisions] SUBDIVISIONS of
the state now or hereafter authorized by law to engage in the distrib-
ution of electric power may secure a reasonable share of the power
generated by such projects, and shall sell the same or cause the same to
be sold to such municipalities and political subdivisions at prices
representing cost of generation, plus capital and operating charges,
plus a fair cost of transmission, all as determined by the trustees, and
subject to conditions which shall assure the resale of such power to
[domestic and rural consumers] SUCH CUSTOMERS at the lowest possible
price, provided, however, that in disposing of hydro-electric power
pursuant to and in furtherance of the aforementioned policy and
purposes, appropriate provision may also be made to allocate a reason-
able share of project power to agencies created or designated by other
states and authorized to resell the power to users under the same terms
and conditions as power is disposed of in New York state. To that end,
the authority may provide in any contract or contracts which it may make
for the sale, transmission and distribution of the power that the
purchaser, transmitter or distributor shall construct, maintain and
operate, on such terms as the authority may deem proper, such connecting
lines as may be necessary for transmission of the power from main trans-
mission lines to such municipalities or political subdivisions.
S 14. Section 1005 of the public authorities law is amended by adding
a new subdivision 13-a to read as follows:
13-A. ECONOMIC BENEFIT POWER PROGRAM. (A) BEGINNING NO LATER THAN
JULY FIRST, TWO THOUSAND ELEVEN, THE AUTHORITY IS AUTHORIZED AND
DIRECTED, AS DEEMED FEASIBLE AND ADVISABLE BY THE TRUSTEES, TO MAKE
ANNUAL PAYMENTS IN AN AMOUNT OF UP TO ONE HUNDRED TWENTY MILLION DOLLARS
FOR UP TO NINE HUNDRED TEN MEGAWATTS OF ECONOMIC BENEFIT POWER PROGRAM
AWARDS UPON THE RECOMMENDATION OF THE ECONOMIC DEVELOPMENT POWER ALLO-
CATION BOARD UNDER THE ECONOMIC BENEFIT POWER PROGRAM AS PROVIDED IN
SECTION ONE HUNDRED EIGHTY-EIGHT-A OF THE ECONOMIC DEVELOPMENT LAW. NOT
LESS OFTEN THAN ANNUALLY, THE AUTHORITY SHALL IDENTIFY AND ADVISE THE
S. 7573 13
ECONOMIC DEVELOPMENT POWER ALLOCATION BOARD OF THE AVAILABILITY OF THE
FUNDS FOR SUCH AWARD.
(B) NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, BUT
SUBJECT TO THE TERMS AND CONDITIONS OF FEDERAL ENERGY REGULATORY COMMIS-
SION LICENSES, TO ALLOCATE, REALLOCATE OR EXTEND, DIRECTLY OR BY SALE
FOR RESALE, UP TO NINE HUNDRED TEN MEGAWATTS OF ECONOMIC BENEFIT POWER
TO ELIGIBLE APPLICANTS LOCATED WITHIN THE STATE OF NEW YORK UPON THE
RECOMMENDATION OF THE NEW YORK STATE ECONOMIC DEVELOPMENT POWER ALLO-
CATION BOARD PURSUANT TO SECTION ONE HUNDRED EIGHTY-EIGHT-A OF THE
ECONOMIC DEVELOPMENT LAW.
(C) ECONOMIC BENEFIT POWER SHALL MEAN AND CONSIST OF EQUAL AMOUNTS OF
(1) UP TO FOUR HUNDRED FIFTY-FIVE MEGAWATTS OF FIRM HYDROELECTRIC POWER
FROM THE NIAGARA AND SAINT LAWRENCE HYDROELECTRIC PROJECTS TO BE WITH-
DRAWN AS OF JUNE FIRST, TWO THOUSAND TEN FROM UTILITY CORPORATIONS THAT,
AS OF MAY THIRTY-FIRST, TWO THOUSAND TEN, PURCHASED SUCH POWER FOR THE
BENEFIT OF THEIR DOMESTIC AND RURAL CONSUMERS ("ECONOMIC BENEFIT POWER
HYDROPOWER"), AND (2) POWER PROCURED BY THE AUTHORITY THROUGH A COMPET-
ITIVE PROCUREMENT PROCESS, AUTHORITY SOURCES (OTHER THAN THE NIAGARA AND
SAINT LAWRENCE PROJECTS) OR THROUGH AN ALTERNATE METHOD ("ECONOMIC BENE-
FIT POWER MARKET POWER"). WITH RESPECT TO ECONOMIC BENEFIT POWER MARKET
POWER, THE AUTHORITY MAY PROVIDE POWER THROUGH AN ALTERNATE METHOD IF
THE COST IS LOWER THAN THE COST OF POWER OBTAINED THROUGH A COMPETITIVE
PROCUREMENT PROCESS; PROVIDED, HOWEVER, THAT IF SUCH LOWER COST POWER
COMES FROM AUTHORITY SOURCES, THE USE OF THAT POWER SHALL NOT REDUCE THE
AVAILABILITY OF, OR CAUSE AN INCREASE IN THE PRICE OF, POWER PROVIDED BY
THE AUTHORITY FOR ANY OTHER PROGRAM AUTHORIZED IN THIS ARTICLE OR PURSU-
ANT TO ANY OTHER STATUTE.
(D) NOTWITHSTANDING SECTION ONE THOUSAND NINE OF THIS TITLE OR ANY
OTHER PROVISION OF LAW TO THE CONTRARY, THE AUTHORITY IS AUTHORIZED,
BEGINNING JULY FIRST, TWO THOUSAND ELEVEN, TO MAKE AVAILABLE, CONTRACT
WITH AND SELL TO SUCH ELIGIBLE APPLICANTS AS ARE RECOMMENDED BY THE
ECONOMIC DEVELOPMENT POWER ALLOCATION BOARD UP TO NINE HUNDRED TEN MEGA-
WATTS OF ECONOMIC BENEFIT POWER FOR ECONOMIC BENEFIT POWER ALLOCATIONS.
AN ECONOMIC BENEFIT POWER ALLOCATION SHALL CONSIST OF EQUAL PARTS OF
ECONOMIC BENEFIT POWER HYDROPOWER AND ECONOMIC BENEFIT POWER MARKET
POWER AS SUCH TERMS ARE DEFINED IN PARAGRAPH (C) OF THIS SUBDIVISION;
PROVIDED, HOWEVER, THAT PRIOR TO ENTERING INTO A CONTRACT WITH AN ELIGI-
BLE APPLICANT FOR THE SALE OF ECONOMIC BENEFIT POWER, AND PRIOR TO THE
PROVISION OF ELECTRIC SERVICE RELATING TO THE ECONOMIC BENEFIT POWER
ALLOCATION, THE AUTHORITY SHALL OFFER EACH ELIGIBLE APPLICANT THE OPTION
TO DECLINE TO PURCHASE THE ECONOMIC BENEFIT POWER MARKET POWER COMPONENT
OF SUCH ALLOCATION. IF AN ELIGIBLE APPLICANT DECLINES TO PURCHASE SUCH
MARKET POWER FROM THE AUTHORITY, THE AUTHORITY SHALL HAVE NO RESPONSI-
BILITY FOR SUPPLYING SUCH MARKET POWER TO THE ELIGIBLE APPLICANT;
FURTHER PROVIDED THAT, ANY REVENUES THAT MAY FROM TIME TO TIME RESULT
FROM THE SALE OF ANY PORTION OF ECONOMIC BENEFIT POWER HYDROPOWER NOT
OTHERWISE REQUIRED OR ALLOCATED TO MEET THE OBLIGATIONS OF THE ECONOMIC
BENEFIT POWER PROGRAM AS PROVIDED FOR BY THE PROVISIONS OF TITLE ONE OF
ARTICLE FIVE OF THE PUBLIC AUTHORITIES LAW OR ARTICLE SIX OF THE ECONOM-
IC DEVELOPMENT LAW, SHALL, AS DEEMED FEASIBLE AND ADVISABLE BY THE TRUS-
TEE, BE SOLELY AND EXCLUSIVELY DEDICATED TO AND USED FOR THE PURPOSES OF
THE ECONOMIC BENEFIT POWER PROGRAM AND TO ENHANCE AND MAKE AVAILABLE
ECONOMIC BENEFIT POWER AWARDS.
S 15. Monthly payments for domestic and rural consumers. Notwith-
standing any provision of title 1 of article 5 of the public authorities
law or article 6 of the economic development law to the contrary, the
S. 7573 14
power authority of the state of New York is authorized, as deemed feasi-
ble and advisable by the trustees, to use revenues from the sale of
hydroelectric power, and such other funds of the power authority as
deemed feasible and advisable by the trustees, to fund monthly payments
to be made to such classes of electricity consumers that enjoyed the
benefits of authority hydroelectric power withdrawn pursuant to subdivi-
sion 13-a of section 1005 of the public authorities law for the purpose
of mitigating price impacts associated with the reallocation of such
power. Such monthly payments shall commence on June 1, 2010. The total
annual amount of monthly payments for each of the 12 month periods from
June 1, 2010 through May 31, 2011 and from June 1, 2011 through May 31,
2012 shall be seventy million dollars for each such period. The total
annual amount of monthly payments for the 12 month period from June 1,
2012 through May 31, 2013 shall be sixty million dollars. The total
amount of monthly payments for the 12 month period from June 1, 2013
through May 31, 2014 shall be fifty million dollars. The total amount of
monthly payments for each succeeding 12 month period thereafter shall be
forty million dollars. The total amount of such payments shall be
apportioned by the power authority of the state of New York among the
utility corporations that purchased such hydroelectric power for the
benefit of their domestic and rural consumers as of May 31, 2010 accord-
ing to the relative amounts of such power purchased by such companies.
Payments shall be credited to the electricity bills of such corpo-
rations' domestic and rural consumers in a manner to be determined by
the public service commission of the state of New York.
S 16. Transitional electricity discount. Notwithstanding any provision
of title 1 of article 5 of the public authorities law or article 6 of
the economic development law to the contrary, with respect to applicants
who are in substantial compliance with all contractual commitments and
receiving benefits under the power for jobs, energy cost savings bene-
fit, economic development, high load factor or municipal distribution
agency programs, but would otherwise not receive a recommendation from
the New York state economic development power allocation board for an
economic benefit power allocation pursuant to section 188-a of the
economic development law, such board shall recommend that the power
authority of the state of New York provide for a transitional electric-
ity discount to such applicants. The power authority of the state of New
York is authorized, as deemed feasible and advisable by the trustees, to
provide such transitional electricity discounts as recommended by the
New York State economic development power allocation board. Not less
often than annually, the power authority of the state of New York shall
identify and advise such board whether sufficient funds are available
for the funding of such transitional electricity discounts. The amount
of the transitional electricity discount for the period July 1, 2011
through June 30, 2013 shall be equivalent to 66 percent of the unit (per
kilowatt-hour) value of the savings received by the applicant under the
power for jobs or energy cost savings benefit programs during the 12
months ending on May 15, 2010. The amount of the transitional electric-
ity discount for the period July 1, 2013 through June 30, 2015 shall be
equivalent to 33 percent of the unit (per kilowatt-hour) value of the
savings received by the applicant under the power for jobs or energy
cost savings benefit programs during the 12 months ending on May 15,
2010. Such transitional electricity discount shall not be provided
after June 30, 2015. Nothing herein shall prohibit or in any way limit
any applicants who are in substantial compliance with all contractual
commitments and receiving benefits under the power for jobs, energy cost
S. 7573 15
savings benefit, economic development, high load factor or municipal
distribution agency programs, whether or not they are recipients of a
transitional electricity discount pursuant to this paragraph, from
applying for or receiving an economic benefit power award for which they
would otherwise qualify, provided however that the receipt of an econom-
ic benefit power award by an applicant shall bar any further eligibility
for a transitional electricity discount, and no applicant shall receive
both an economic benefit power award and a transitional electricity
discount for the same calendar or billing period.
S 17. Section 1005 of the public authorities law is amended by adding
two new subdivisions 13-b and 13-c to read as follows:
13-B. RESIDENTIAL CONSUMER ENERGY EFFICIENCY. BEGINNING JUNE FIRST,
TWO THOUSAND ELEVEN, THE AUTHORITY, AS DEEMED FEASIBLE AND ADVISABLE BY
THE TRUSTEES, IS AUTHORIZED TO USE SUCH FUNDS OF THE AUTHORITY AS DEEMED
FEASIBLE AND ADVISABLE BY THE TRUSTEES, TO SUPPLEMENT FUNDING FOR EXIST-
ING STATE ENERGY EFFICIENCY PROGRAMS, ADMINISTERED BY THE PUBLIC SERVICE
COMMISSION AND/OR NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHOR-
ITY. SUCH FUNDING SHALL BE MADE AVAILABLE TO RESIDENTIAL CONSUMERS WHO
RESIDE WITHIN THE SERVICE TERRITORIES OF THE UTILITY CORPORATIONS THAT,
AS OF MAY THIRTY-FIRST, TWO THOUSAND TEN, PURCHASED SUCH POWER FOR THE
BENEFIT OF THEIR DOMESTIC AND RURAL CONSUMERS. IN MAKING FUNDING DETER-
MINATIONS PURSUANT TO THIS PARAGRAPH, THE AUTHORITY SHALL COOPERATE WITH
THE PUBLIC SERVICE COMMISSION AND THE NEW YORK STATE ENERGY RESEARCH AND
DEVELOPMENT AUTHORITY, AS APPROPRIATE. THE PUBLIC SERVICE COMMISSION AND
THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY SHALL
PROVIDE A REPORT TO THE AUTHORITY NO LESS THAN ANNUALLY WHICH SHALL
DESCRIBE THE PURPOSE FOR WHICH THE FUNDS AUTHORIZED BY THIS PARAGRAPH
WERE USED. THE REPORT SHALL INCLUDE SUFFICIENT INFORMATION TO DEMON-
STRATE THAT THE FUNDS WERE USED FOR THE PURPOSES AUTHORIZED BY THIS
PARAGRAPH AND PROVIDE SUCH OTHER INFORMATION AS THE AUTHORITY REQUESTS.
13-C. TO PROMOTE THE CONSERVATION AND EFFICIENT USE OF ELECTRICITY,
THE POWER AUTHORITY OF THE STATE OF NEW YORK SHALL UNDERTAKE OR CAUSE TO
BE UNDERTAKEN ENERGY AUDITS FOR THOSE APPLICANTS THAT THE BOARD HAS
DETERMINED WOULD BENEFIT FROM AND WOULD BE ELIGIBLE TO RECEIVE AN
ECONOMIC BENEFIT POWER AWARD. THE AUDITS SHALL ASSESS (I) A RECIPIENT'S
ELECTRICITY USE TO DETERMINE BASED ON A COMPARISON OF THE NORMS OF THEIR
SPECIFIC INDUSTRY, COST-EFFECTIVE MEASURES THAT COULD BE EMPLOYED TO
REDUCE ENERGY COSTS, ENERGY USE, OR IMPROVE THE EFFICIENCY OF BUILDINGS,
BUILDING SYSTEMS, EQUIPMENT, PROCESSES OR OPERATIONS; AND (II) THE
FEASIBILITY OF ONSITE POWER GENERATION FOR COMBINED HEAT AND POWER
AND/OR DISTRIBUTED GENERATION PURPOSES. APPLICANTS' ENERGY AUDITS
PERFORMED UP TO FIVE YEARS PRIOR TO THE DATE OF APPLICATION SUBMISSION
MAY BE CONSIDERED BY THE BOARD AND THE RESULTS THEREOF USED BY THE BOARD
IN MAKING ITS DETERMINATION. COSTS OF THE ENERGY AUDITS CAUSED TO BE
UNDERTAKEN SHALL BE PAID BY THE POWER AUTHORITY OF THE STATE OF NEW YORK
AS DEEMED FEASIBLE AND ADVISABLE BY THE BOARD. FOR PURPOSES OF IMPLE-
MENTING THIS SUBDIVISION ONLY, THE POWER AUTHORITY OR ITS AGENT IS
AUTHORIZED TO APPLY FOR FUNDING FROM ANY PROGRAM THAT PAYS ALL OR SOME
OF THE COSTS OF SUCH AUDITS, AND THE POWER AUTHORITY OR ITS AGENT SHALL
BE ENTITLED TO RECEIVE SUCH FUNDING AS IF THE RECIPIENT OF SUCH LOW-COST
POWER HAD APPLIED FOR THE FUNDING DIRECTLY.
S 18. Section 1005 of the public authorities law is amended by adding
a new subdivision 17 to read as follows:
17. A. FOR THE PURPOSE OF FURNISHING THE STATE WITH SYSTEMATIC INFOR-
MATION REGARDING THE STATUS AND THE ACTIVITIES OF THE AUTHORITY, THE
AUTHORITY SHALL SUBMIT TO THE GOVERNOR, THE CHAIRPERSON OF THE SENATE
S. 7573 16
FINANCE COMMITTEE, THE CHAIRPERSON OF THE ASSEMBLY WAYS AND MEANS
COMMITTEE AND THE STATE COMPTROLLER, WITHIN NINETY DAYS AFTER THE END OF
ITS FISCAL YEAR, A COMPLETE AND DETAILED ANNUAL REPORT ON EACH ECONOMIC
DEVELOPMENT POWER PROGRAM IT ADMINISTERS. SUCH ANNUAL REPORT SHALL
INCLUDE, BUT NOT BE LIMITED TO, THE FOLLOWING INFORMATION:
(I) THE NUMBER OF COMMERCIAL/INDUSTRIAL RECIPIENTS OF ECONOMIC POWER
PROGRAM BENEFITS, WHERE THE ECONOMIC REGION CLIENT IS LOCATED, WHAT TYPE
AND HOW MUCH ASSISTANCE IS PROVIDED, MEGAWATTS OF ELECTRICITY AWARDED,
LENGTH OF CURRENT CONTRACT, CURRENT CONTRACT COMPLIANCE STATUS, LAST
AUDIT, NUMBER OF JOBS RETAINED AND/OR ADDED IN THE FISCAL YEAR, APPROXI-
MATE ENERGY EFFICIENCY SAVINGS AND AMOUNT OF POWER REALLOCATED FROM
PREVIOUS YEARS DUE TO FORFEITED BENEFITS;
(II) COST TO THE AUTHORITY TO PROVIDE ECONOMIC DEVELOPMENT POWER
PROGRAMS DURING THE PREVIOUS FISCAL YEAR; AND
(III) SOURCES, TYPES AND COSTS OF POWER OBTAINED FOR EACH ECONOMIC
DEVELOPMENT POWER PROGRAM IT ADMINISTERS, INCLUDING, BUT NOT LIMITED TO,
AN EXPLANATION OF HOW POWER IS OBTAINED BY THE AUTHORITY TO SUPPORT EACH
ECONOMIC DEVELOPMENT POWER PROGRAM IT ADMINISTERS, THE PERCENTAGE OF
LONG- AND SHORT-TERM POWER PURCHASE AGREEMENTS USED AND DAY-AHEAD AND
SPOT MARKET PURCHASES, AND SUMMARY OF NEW YORK INDEPENDENT SYSTEM OPERA-
TOR (NYISO) CHARGES PAID BY AUTHORITY CUSTOMERS.
B. THE COMPTROLLER SHALL BE CHARGED WITH SEEING THAT THE REPORTS
MANDATED IN THIS SUBDIVISION ARE FILED ON TIME AND THAT THEY ARE SUFFI-
CIENTLY COMPREHENSIVE. THE COMPTROLLER SHALL REPORT ANY DEFICIENCIES TO
THE GOVERNOR AND TO THE LEGISLATIVE CHAIRS NAMED IN SUBDIVISION ONE OF
THIS SECTION.
S 19. Severability clause. If any clause, sentence, paragraph, subdi-
vision, section or part of this act shall be adjudged by any court of
competent jurisdiction to be invalid, such judgment shall not affect,
impair, or invalidate the remainder thereof, but shall be confined in
its operation to the clause, sentence, paragraph, subdivision, section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the legislature that this act would have been enacted even if such
invalid provisions had not been included therewith.
S 20. This act shall take effect immediately; provided that the amend-
ments to section 183 of the economic development law made by sections
two, eight, nine and ten of this act shall be subject to the expiration
and reversion of such section pursuant to section 9 of chapter 316 of
the laws of 1997, as amended, when upon such date the provisions of
section eleven of this act shall take effect; provided, further, that
the amendments to section 189 of the economic development law made by
sections three and four of this act shall not affect the repeal of such
section and shall be deemed repealed therewith; and provided, further
that the amendments to subdivision 9 of section 186-a of the tax law
made by section six of this act shall not affect the repeal of such
subdivision and shall be deemed repealed therewith.
