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

                                   925

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 7, 2009
                               ___________

Introduced by M. of A. DelMONTE -- read once and referred to the Commit-
  tee on Energy

AN  ACT to amend the public authorities law, in relation to establishing
  the power authority of the state of  New  York  shall  make  low  cost
  hydropower available to certain hospitals

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

  Section 1. The opening paragraph of subdivision 13 of section 1005  of
the  public  authorities  law,  as amended by chapter 645 of the laws of
2006, is amended to read as follows:
  Notwithstanding any other provision of law to the contrary but subject
to the terms and conditions  of  federal  energy  regulatory  commission
licenses,  to allocate or reallocate directly or by sale for resale, two
hundred fifty megawatts of firm Niagara project hydroelectric  power  as
"expansion  power" and four hundred forty-five megawatts of firm Niagara
project hydroelectric power as "replacement power" to businesses  within
the  state  located within thirty miles of the Niagara project, and four
hundred ninety megawatts of firm and interruptible power from the  Saint
Lawrence-FDR  project as "preservation power" sold to businesses located
within the counties of Jefferson, Saint Lawrence and Franklin,  provided
that the amount of expansion power allocated to businesses in Chautauqua
county on January first, nineteen hundred eighty-seven shall continue to
be  allocated  in  such  county and, provided further that up to seventy
megawatts of replacement power, up to thirty-eight and six-tenths  mega-
watts of preservation power from the Saint Lawrence-FDR project which is
relinquished  or  withdrawn  after  the  effective date of chapter three
hundred thirteen of the laws of two thousand  five  which  amended  this
subdivision  and,  for  the  period ending on December thirty-first, two
thousand six, up to twenty megawatts  of  other  power  from  the  Saint
Lawrence-FDR  project  which  is unallocated as of the effective date of

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

                                                           LBD01082-01-9

A. 925                              2

chapter three hundred thirteen of the laws of two  thousand  five  which
amended  this  subdivision, shall be allocated by the authority together
with such other funds of the authority as the trustees deem feasible and
advisable  for  energy  cost  savings benefits pursuant to the [twelfth]
ELEVENTH undesignated paragraph of this section  AND,  PROVIDED  FURTHER
THAT LOW COST HYDROPOWER BE MADE AVAILABLE TO HOSPITALS THAT ARE LOCATED
IN  THE  COUNTIES  OF NIAGARA AND ORLEANS.   Provided, however, that the
amount of replacement, preservation  power,  or  the  additional  twenty
megawatts  of  Saint  Lawrence-FDR  power for the period ending December
thirty-first, two thousand six made available for such purpose, used for
energy cost savings benefits that are relinquished by or withdrawn  from
a  recipient  thereof  shall be offered by the authority proportionately
for a period of six months for reallocation to  applicants  who  qualify
respectively  for  replacement  or  preservation  power  allocations  as
provided in this subdivision. If such power is not allocated within such
period it shall be allocated for the  purpose  of  energy  cost  savings
benefits pursuant to subdivision (h) of section one hundred eighty-three
of the economic development law. The authority shall negotiate contracts
on  reasonable  terms  and conditions to renew or extend every permanent
contract allocation of expansion power in effect on the  effective  date
of  this  subdivision and, to the extent consistent with such contracts,
the authority shall negotiate contracts on reasonable terms  and  condi-
tions  to  extend  or  renew all other allocations or allotments of such
power in effect on such date.  The authority shall  negotiate  contracts
on reasonable terms and conditions to renew or extend for a period of at
least  five  years  every  permanent  contract allocation of replacement
power in effect on the effective date of chapter three hundred  thirteen
of  the  laws  of  two  thousand five which added this sentence and that
would expire by its terms on or before the end of  the  initial  federal
energy  regulatory  commission license for the Niagara project; provided
that, in negotiating the terms and conditions  of  such  contracts,  the
authority  may consider a business' compliance with all current contrac-
tual obligations, including  employment  and  power  usage  commitments.
Contracts  entered  into  pursuant  to  this  subdivision  shall contain
reasonable provisions providing for the partial or  complete  withdrawal
of  the  power  in  the  event  the recipient fails to maintain mutually
agreed levels of employment, investment, and power  utilization.  Expan-
sion or replacement power relinquished by businesses or withdrawn by the
authority  shall  be  allocated  directly  or  by sale for resale by the
authority to businesses within the state located within thirty miles  of
the  Niagara  project  provided,  that  the amount of power allocated to
businesses in Chautauqua  county  on  January  first,  nineteen  hundred
eighty-seven  shall be allocated in such county. Preservation power that
is relinquished by businesses or withdrawn by  the  authority  shall  be
allocated  directly  or  by  sale for resale by the authority within the
counties of Jefferson, Saint Lawrence  and  Franklin.  Allocations  made
pursuant  to  this  paragraph  shall be made in accordance with criteria
established by the trustees.  Such criteria shall address the  expansion
of industry and employment pursuant to paragraph (a) of this subdivision
and the revitalization of existing industry pursuant to paragraph (b) of
this subdivision.
  S 2. This act shall take effect immediately.