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

                                 3780--A

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                            January 27, 2015
                               ___________

Introduced by M. of A. CERETTO, HAWLEY -- Multi-Sponsored by -- M. of A.
  DiPIETRO  --  read  once  and  referred  to the Committee on Energy --
  committee discharged, bill amended, ordered reprinted as  amended  and
  recommitted to said committee

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relinquished  or  withdrawn  after  the  effective date of chapter three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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07140-03-5
              

A. 3780--A                          2

Lawrence-FDR  project  which  is unallocated as of the effective date of
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
undesignated paragraph of this section AND, PROVIDED  FURTHER  THAT  LOW
COST  HYDROPOWER  BE  MADE  AVAILABLE TO HOSPITALS AND MUNICIPAL HOUSING
AUTHORITIES 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 relin-
quished 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 reason-
able terms and conditions 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 chap-
ter 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  contractual  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.
Expansion  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.