A. 5905 2
AUTHORITY PURSUANT TO REGULATIONS ADOPTED BY SUCH DEPARTMENT, ANY REVEN-
UES DERIVED FROM POTENTIAL DEVELOPMENT OF THE MARCELLUS OR UTICA SHALE
AREAS OVER AND ABOVE THAT WHICH IS NEEDED TO ENSURE APPROPRIATE STAFF AT
THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION, DEPARTMENT OF HEALTH,
DEPARTMENT OF PUBLIC SERVICE AND OTHER RELEVANT STATE AGENCIES, AND ANY
OTHER ENERGY RELATED REVENUE THAT THE STATE MAY ACQUIRE IN CONNECTION
WITH THE DEVELOPMENT OF SUCH AREA THAT IS NOT ALREADY COMMITTED TO A
DEDICATED PROJECT OR SOURCE. MONEYS IN THE FUND SHALL BE KEPT SEPARATELY
FROM AND SHALL NOT BE COMMINGLED WITH ANY OTHER MONEYS IN THE CUSTODY OF
THE STATE COMPTROLLER. UNDER NO CIRCUMSTANCE SHALL FUNDS IN THIS ACCOUNT
BE SWEPT, REPURPOSED OR OTHERWISE EXPENDED EXCEPT FOR THE EXPRESS
PURPOSES OUTLINED HEREIN.
(B) MONEYS IN THIS FUND SHALL BE USED AS SET FORTH IN THIS SECTION TO
ASSIST MAJOR ELECTRIC GENERATING FACILITIES OPERATING WITHIN THE STATE
OF NEW YORK WITH INVESTMENTS IN QUALIFIED ENERGY INFRASTRUCTURE, QUALI-
FIED NEW CONSTRUCTION OR REPOWERING PROJECTS; AND TO MITIGATE NEGATIVE
PROPERTY TAX OR PAYMENT IN LIEU OF TAXES IMPACTS ON COMMUNITIES WHO HAVE
LOST A MAJOR ELECTRIC GENERATING FACILITY.
3. (A) A MAJOR ELECTRIC GENERATING FACILITY WHICH UNDERTAKES A REPOW-
ERING PROJECT, QUALIFIED ENERGY INFRASTRUCTURE INVESTMENT OR A QUALIFIED
NEW CONSTRUCTION PROJECT AS DEFINED IN THIS SUBDIVISION MAY APPLY FOR
ASSISTANCE FROM THE FUND PURSUANT TO SUBDIVISION FOUR OF THIS SECTION.
(B) FOR THE PURPOSES OF THIS SECTION THE FOLLOWING TERMS SHALL HAVE
THE FOLLOWING MEANINGS:
(I) "REPOWERING PROJECT" SHALL MEAN IMPROVEMENTS TO AN EXISTING MAJOR
ELECTRIC GENERATING FACILITY THAT WILL ALLOW THE FACILITY, OR A NEW UNIT
OR UNITS AT THE FACILITY, OR THE COMBINATION OF THE NEW UNIT OR UNITS
AND THE FACILITY TO MEET THE RELEVANT ENVIRONMENTAL REQUIREMENTS
CONTAINED IN SUBPARAGRAPHS (I), (II), (III), AND (IV) OF PARAGRAPH (B)
OF SUBDIVISION FOUR OF SECTION ONE HUNDRED SIXTY-FIVE OF THE PUBLIC
SERVICE LAW.
(II) "QUALIFIED ENERGY INFRASTRUCTURE INVESTMENT" SHALL MEAN ANY
INVESTMENT NEEDED TO DELIVER A NEW FUEL SOURCE TO AN EXISTING MAJOR
ELECTRIC GENERATING FACILITY, REPLACE OR RETROFIT A BURNER OR TURBINE,
UTILIZE ON-SITE RENEWABLE ENERGY GENERATION OR ANY OTHER SUBSTANTIAL
INVESTMENT THAT WILL HAVE A DIRECT IMPACT ON THE FACILITY'S ABILITY TO
MEET THE ENVIRONMENTAL REQUIREMENTS CONTAINED IN SUBPARAGRAPHS (I),
(II), (III), AND (IV) OF PARAGRAPH (B) OF SUBDIVISION FOUR OF SECTION
ONE HUNDRED SIXTY-FIVE OF THE PUBLIC SERVICE LAW.
(III) "QUALIFIED NEW CONSTRUCTION PROJECT" SHALL MEAN CONSTRUCTING A
NEW MAJOR ELECTRIC GENERATING FACILITY ON THE SAME PROPERTY AS AN EXIST-
ING FACILITY OR ON PROPERTY DIRECTLY ADJACENT OR CONTIGUOUS TO SAID
PROPERTY, WHERE THE NEW FACILITY BY ITSELF OR IN COMBINATION WITH THE
EXISTING FACILITY WILL ALLOW THE SITE AS A WHOLE TO MEET THE ENVIRON-
MENTAL REQUIREMENTS CONTAINED IN SUBPARAGRAPHS (I), (II), (III), AND
(IV) OF PARAGRAPH (B) OF SUBDIVISION FOUR OF SECTION ONE HUNDRED SIXTY-
FIVE OF THE PUBLIC SERVICE LAW.
(IV) "MAJOR ELECTRIC GENERATING FACILITY" SHALL MEAN AN ELECTRIC
GENERATING FACILITY WITH A NAMEPLATE GENERATING CAPACITY OF TWENTY-FIVE
THOUSAND KILOWATTS OR MORE, INCLUDING INTERCONNECTION ELECTRIC TRANS-
MISSION LINES AND FUEL GAS TRANSMISSION LINES THAT ARE NOT SUBJECT TO
REVIEW UNDER ARTICLE SEVEN OF THE PUBLIC SERVICE LAW.
4. THE EMPIRE STATE DEVELOPMENT CORPORATION SHALL CONDUCT COMPETITIVE
SOLICITATIONS FOR PROPOSALS SUBMITTED BY MAJOR ELECTRIC GENERATING
FACILITIES UNDERTAKING ANY REPOWERING PROJECT, QUALIFIED ENERGY INFRAS-
TRUCTURE INVESTMENT PROJECT OR QUALIFIED NEW CONSTRUCTION PROJECT AS
A. 5905 3
SUCH TERMS ARE DEFINED IN THIS SECTION, FOR ASSISTANCE FROM THE FUND
ESTABLISHED PURSUANT TO THE PROVISIONS OF THIS SECTION. SUCH COMPETITIVE
SOLICITATIONS SHALL BE DESIGNED IN A MANNER AND FORM TO BE DETERMINED BY
THE EMPIRE STATE DEVELOPMENT CORPORATION IN CONSULTATION WITH THE
DEPARTMENT OF TAXATION AND FINANCE AND THE COMPTROLLER. A SCHEDULE FOR
SUCH COMPETITIVE SOLICITATIONS, AWARD SELECTION, AND DISTRIBUTION OF
FUNDS SHALL BE ESTABLISHED BY THE EMPIRE STATE DEVELOPMENT CORPORATION
IN CONSULTATION WITH THE DEPARTMENT OF TAXATION AND FINANCE AND THE
COMPTROLLER. THE EMPIRE STATE DEVELOPMENT CORPORATION SHALL RANK THE
PROPOSALS IT RECEIVED IN RESPONSE TO COMPETITIVE SOLICITATIONS AND
CHOOSE THE HIGHEST RANKED PROPOSALS MEASURED ON THE FOLLOWING CRITERIA
TO BE CONSIDERED IN THE AGGREGATE:
(A) THE AMOUNT OF ASSISTANCE REQUESTED IN PROPORTION TO THE TOTAL
QUANTITY OF MEGAWATTS OF NEW GENERATION CAPACITY THAT WILL BE
CONSTRUCTED;
(B) THE EXTENT TO WHICH AN AWARD WILL RESULT IN NEW CAPITAL INVESTMENT
IN THE STATE BY THE APPLICANT;
(C) THE TYPE AND COST OF FACILITIES AND EQUIPMENT TO BE CONSTRUCTED,
ENLARGED OR INSTALLED IF THE APPLICANT WERE TO RECEIVE AN AWARD;
(D) THE APPLICANT'S PAYROLL, SALARIES, BENEFITS AND NUMBER OF JOBS AT
THE FACILITY FOR WHICH AN AWARD IS REQUESTED;
(E) THE NUMBER OF JOBS THAT WILL BE CREATED OR RETAINED, AS APPLICA-
BLE, WITHIN THE STATE IN RELATION TO THE REQUESTED AWARD AND THE EXTENT
TO WHICH THE APPLICANT WILL AGREE TO COMMIT TO CREATING OR RETAINING, AS
APPLICABLE, SUCH JOBS AS A CONDITION TO RECEIVING AN AWARD;
(F) WHETHER THE APPLICANT IS AT RISK OF CLOSING OR CURTAILING FACILI-
TIES OR OPERATIONS IN THE STATE, RELOCATING FACILITIES OR OPERATIONS OUT
OF THE STATE, OR LOSING A SIGNIFICANT NUMBER OF JOBS IN THE STATE, IN
THE ABSENCE OF AN AWARD;
(G) THE SIGNIFICANCE OF THE APPLICANT'S FACILITY TO THE ECONOMY OF THE
AREA IN WHICH SUCH FACILITY IS LOCATED; AND
(H) THE EXTENT TO WHICH AN AWARD WILL RESULT IN AN ADVANTAGE FOR AN
APPLICANT IN RELATION TO THE APPLICANT'S COMPETITORS WITHIN THE STATE.
ALL PAYMENTS OF MONEYS FROM THE FUND SHALL BE MADE ON THE AUDIT AND
THE WARRANT OF THE COMPTROLLER TO BE DISBURSED BY THE DEPARTMENT OF
TAXATION AND FINANCE IN CONJUNCTION AND CONSULTATION WITH THE COMP-
TROLLER. RECOMMENDATIONS FOR AN AWARD UNDER THIS SECTION SHALL BE MADE
BY THE EMPIRE STATE DEVELOPMENT CORPORATION IN ORDER TO MAXIMIZE THE
ECONOMIC DEVELOPMENT IMPACTS OF EACH POSSIBLE PROJECT.
5. (A) PROPOSALS FOR ASSISTANCE FROM THE FUND MAY BE MADE BY A COUNTY,
CITY, TOWN, VILLAGE OR SCHOOL DISTRICT THAT HAS BEEN SUBSTANTIALLY
ADVERSELY IMPACTED BY THE LOSS OF PROPERTY TAX REVENUES OR THE LOSS OF
REVENUES FROM PAYMENTS IN LIEU OF TAXES DUE TO THE CLOSING OF A MAJOR
ELECTRIC GENERATING FACILITY. PROPOSALS SHALL BE FILED IN A MANNER AND
FORM TO BE DETERMINED BY THE EMPIRE STATE DEVELOPMENT CORPORATION IN
CONSULTATION WITH THE DEPARTMENT OF TAXATION AND FINANCE AND THE COMP-
TROLLER. FOR THE PURPOSES OF THIS SUBDIVISION, SUBSTANTIAL ADVERSE
IMPACT SHALL MEAN A SITUATION WHERE THE CLOSURE OF A MAJOR ELECTRIC
GENERATING FACILITY REPRESENTS A REDUCTION IN TAX COLLECTIONS TO A
MUNICIPAL CORPORATION OF AT LEAST TEN PERCENT OF TOTAL RECEIPTS AND IS
EXPECTED TO HAVE AN ADVERSE AND UNEXPECTED NEGATIVE IMPACT ON TAXPAYERS.
(B) APPLICANTS MAY ONLY SEEK ASSISTANCE FOR A MAXIMUM OF FIVE YEARS
AND MAY ONLY SEEK ASSISTANCE UNDER THE FOLLOWING LIMITS, WHICH SHALL BE
CALCULATED BASED ON THE TOTAL AMOUNT OF TAXES COLLECTED FROM THE ELEC-
TRIC GENERATING FACILITY WHEN AVERAGING THE PAST FIVE TAXABLE YEARS,
ENDING WITH THE FINAL YEAR OF PLANT OPERATION:
A. 5905 4
FIRST YEAR: UP TO EIGHTY PERCENT OF THE PAST FIVE YEAR AVERAGE;
SECOND YEAR: UP TO FIFTY PERCENT OF THE PAST FIVE YEAR AVERAGE;
THIRD YEAR: UP TO FIFTY PERCENT OF THE PAST FIVE YEAR AVERAGE;
FOURTH YEAR: UP TO TWENTY-FIVE PERCENT OF THE PAST FIVE YEAR AVERAGE;
FIFTH YEAR: UP TO TEN PERCENT OF THE PAST FIVE YEAR AVERAGE.
6. THE FUND ESTABLISHED UNDER THIS SECTION SHALL ALSO INCLUDE INDIVID-
UAL REPOWERING SAVINGS ACCOUNTS HELD IN THE JOINT CUSTODY OF THE COMP-
TROLLER AND THE DEPARTMENT OF TAXATION AND FINANCE HELD ON BEHALF OF A
PARTICULAR MAJOR ELECTRIC GENERATING FACILITY AND SHALL CONSIST OF FIFTY
PERCENT OF THE PROCEEDS COLLECTED BUT NOT ALLOCATED BY THE NEW YORK
STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY FROM THE AUCTION, PURSU-
ANT TO REGULATIONS OF SUCH AUTHORITY, OF EMISSION ALLOWANCES ALLOCATED
BY THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION TO SUCH AUTHORITY PURSU-
ANT TO REGULATIONS ADOPTED BY SUCH DEPARTMENT. FUNDS SHALL BE CREDITED
TO THE NAME AND ACCOUNT OF THE SPECIFIC GENERATOR AND EXPENDITURES FROM
THE FUND MAY ONLY BE MADE ON BEHALF OF SAID GENERATOR. A MAJOR ELECTRIC
GENERATOR WHICH ESTABLISHES AN INDIVIDUAL REPOWERING SAVINGS ACCOUNT
UNDER THIS SUBDIVISION MAY USE SUCH FUNDS FOR THE PURPOSES OF A REPOWER-
ING PROJECT, QUALIFIED ENERGY INFRASTRUCTURE INVESTMENT OR A QUALIFIED
NEW CONSTRUCTION PROJECT AS DEFINED IN SUBDIVISION THREE OF THIS
SECTION. SUCH FUNDS MAY BE ACCESSED FROM AN INDIVIDUAL REPOWERING
SAVINGS ACCOUNT AFTER ANY APPLICABLE APPROPRIATE APPROVALS FROM THE
DEPARTMENT OF ENVIRONMENTAL CONSERVATION, THE DEPARTMENT OF PUBLIC
SERVICE AND ANY OTHER STATE ENTITY WHOSE APPROVAL IS REQUIRED PURSUANT
TO THE SCOPE OF THE PROJECT PROPOSED. NO DISBURSEMENT FROM AN ACCOUNT
MAY EXCEED THE COST OR VALUE OF THE WORK PROPOSED, AND ONLY EXPENSES
CONSIDERED DIRECTLY RELATED TO THE BENEFITS OF THE PROJECT WILL BE
ALLOWABLE. DISBURSEMENTS FROM ACCOUNTS SHALL ONLY BE REIMBURSEMENT FOR
ACTUAL EXPENSES PAID BY THE GENERATOR AND SHALL NOT BE ADVANCES OR OTHER
PAYMENTS. FUNDS HELD IN ANY GIVEN INDIVIDUAL REPOWERING SAVINGS ACCOUNT
SHALL BE AVAILABLE FOR USE FOR A PERIOD OF TEN YEARS TOWARD ALLOWABLE
EXPENSES AND CAN BE RENEWED FOR AN ADDITIONAL TEN YEARS, IF THE GENERA-
TOR APPLIES FOR AN EXTENSION OF THEIR ACCOUNT AND AFTER A THOROUGH
REVIEW BY THE PUBLIC SERVICE COMMISSION.
7. ALL PAYMENTS OF MONEYS FROM THE FUND SHALL BE MADE ON THE AUDIT AND
THE WARRANT OF THE COMPTROLLER TO BE DISBURSED BY THE DEPARTMENT OF
TAXATION AND FINANCE IN CONJUNCTION AND CONSULTATION WITH THE COMP-
TROLLER.
S 3. Section 19-0301 of the environmental conservation law is amended
by adding a new subdivision 6 to read as follows:
6. IN ADDITION TO EXISTING REGULATORY AUTHORITY, THE DEPARTMENT MAY:
A. IN COOPERATION WITH THE DEPARTMENT OF PUBLIC SERVICE AND THE NEW
YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY, AMEND PART 242 OF
TITLE 6 OF THE NEW YORK CODES, RULES AND REGULATIONS TO, IN A MANNER
THAT IS CONSISTENT WITH FEDERAL LAW, COVER ELECTRICITY IMPORTED INTO THE
STATE THAT IS NOT ALREADY SUBJECT TO THE COMPARABLE REGULATIONS OF OTHER
STATES, BY THE IMPOSITION OF FEES ON THE CARBON INTENSITY OF SUCH ELEC-
TRICITY IMPORTED INTO THE STATE DEEMED NECESSARY TO MAINTAIN THE ENVI-
RONMENTAL INTEGRITY OF THE MULTI-STATE PROGRAM IN WHICH THE STATE
PARTICIPATES; AND
B. ASSESS FEES EQUIVALENT TO THE AMOUNT OF PROCEEDS ARISING FROM THE
AUCTION, PURSUANT TO REGULATIONS OF THE NEW YORK STATE ENERGY RESEARCH
AND DEVELOPMENT AUTHORITY, OF EMISSION ALLOWANCES ALLOCATED BY THE
DEPARTMENT OF ENVIRONMENTAL CONSERVATION TO SUCH AUTHORITY PURSUANT TO
REGULATIONS ADOPTED BY SUCH DEPARTMENT.
A. 5905 5
REVENUES DERIVED PURSUANT TO THE PROVISIONS OF THIS SUBDIVISION SHALL
BE DIRECTED TO AND DEPOSITED INTO THE "POWER PLANT MODERNIZATION AND
COMMUNITY ASSISTANCE FUND" ESTABLISHED UNDER SECTION EIGHTY-FIVE OF THE
STATE FINANCE LAW.
S 4. (a) The power authority of the state of New York shall within
ninety days of the effective date of this act, issue a request for the
proposals to purchase from such authority one or more of the ten gas
turbine electric generating facilities with a nameplate capacity of less
than eighty megawatts each, owned by such authority as of the effective
date of this act and located in and around the city of New York. Such
request for proposals to sell such generators shall be put out for bid
for a maximum of ninety days and shall include the following sites and
generation facilities:
(1) Two units at Harlem River Yard Plant, located in the Harlem River
Yards, at E. 132nd Street, Bronx, New York 10454;
(2) Two units at Vernon Boulevard, located at 41-98, 42-02, 42-16
Vernon Boulevard, Long Island City, Queens, New York 11101;
(3) Two units at the Hell Gate Plant, located at Locust Avenue, E.
132nd Street to E. 134th Street, Bronx, New York 10454;
(4) Two units at the Windsor Terrace Power Plant, located at 3rd
Avenue and 23rd Street, Brooklyn, New York 11232;
(5) One unit at Pouch Terminal, located at 1 Edgewater Street, Staten
Island, New York 10305; and
(6) One unit at North First Avenue and River Street, located at 47-79
River Street, Brooklyn, New York 11211.
(b) The authority shall issue such requests to determine, among other
things, the likely value to New York state for the sale of such genera-
tors. The authority shall, within thirty days of the end of the solic-
itation period, report on the range of solicited bids to the governor,
the temporary president of the senate and the speaker of the assembly,
subject to all appropriate and applicable confidentiality requirements
with respect to individual bids and information contained therein. The
authority shall commence actions, as the authority's board of trustees
determines appropriate and necessary, to effectuate the sale of such
facilities.
(c) The authority is authorized and directed to deposit the proceeds
of the sale of such generators into the "power plant modernization and
community assistance fund" established under section 85 of the state
finance law.
S 5. This act shall take effect on the ninetieth day after it shall
have become a law.