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

                                  10717

                          I N  A S S E M B L Y

                              June 13, 2016
                               ___________

Introduced by COMMITTEE ON RULES -- (at request of M. of A. Schimminger)
  --  read  once and referred to the Committee on Corporations, Authori-
  ties and Commissions

AN ACT to amend the public service law, in relation  to  the  effect  of
  power importation on electrical markets

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

  Section 1. The public  service  law  is  amended  by  adding  two  new
sections 77-a and 77-b to read as follows:
  S  77-A. LEGISLATIVE INTENT. THE LEGISLATURE HEREBY FINDS AND DECLARES
THAT IT IS IN THE BEST PUBLIC POLICY INTEREST OF THE STATE AND ITS CITI-
ZENS TO ENSURE THAT, TO THE GREATEST EXTENT  POSSIBLE,  THE  LETTER  AND
SPIRIT  OF ENVIRONMENTAL AND RENEWABLE ENERGY GOALS ARE ENFORCED FOR ANY
GENERATOR WHO DOES BUSINESS IN THE NEW YORK STATE ENERGY MARKETS.
  IT IS NOT THE INTENT OF  THIS  LEGISLATURE  TO  ALLOW  GENERATORS  WHO
IMPORT POWER INTO THE STATE TO OBTAIN SIGNIFICANT COMPETITIVE ADVANTAGES
OVER  IN-STATE  GENERATORS.  SUCH  UNJUSTIFIED  ADVANTAGES HURT NEW YORK
GENERATORS, THREATEN JOBS AND LOCAL TAX BASES, AND ENCOURAGE THE  IMPOR-
TATION OF POLLUTION INTENSIVE POWER INTO THE STATE SIGNIFICANTLY THREAT-
ENING THE HEALTH OF THE RESIDENTS OF THIS STATE.
  THE  LEGISLATURE  FURTHER DECLARES THAT IT IS IN THE BEST ECONOMIC AND
ENVIRONMENTAL INTERESTS OF THE STATE TO ADOPT CONSISTENT POLICIES  THAT,
TO  THE  GREATEST  EXTENT  POSSIBLE, UTILIZE ELECTRICAL POWER IN AS COST
EFFICIENT AND ENVIRONMENTALLY  FRIENDLY  MEANS  WHETHER  SUCH  POWER  IS
GENERATED  WITHIN THE STATE OR IS IMPORTED FROM ANOTHER STATE OR NATION.
THEREFORE, THE LEGISLATURE DIRECTS THE COMMISSION TO INITIATE  A  STAKE-
HOLDER  PROCESS  TO  ANALYZE  THE  WAYS  TO  LEVEL THE COMPETITIVE FIELD
REGARDING IN STATE VERSUS IMPORTED GENERATION REGARDING  BOTH  COST  AND
MITIGATING ADVERSE ENVIRONMENTAL EFFECTS.
  S  77-B. THE EFFECT OF POWER IMPORTATION ON ELECTRICAL MARKETS. 1. THE
COMMISSION IS AUTHORIZED AND DIRECTED TO DETERMINE, THROUGH A COMPREHEN-
SIVE MONITORING AND REPORTING METHODOLOGY, THE UNDUE COMPETITIVE  ADVAN-
TAGES IN THE STATE'S ELECTRICITY MARKETS THAT OUT-OF-STATE POWER GENERA-
TORS  HAVE OVER IN-STATE POWER GENERATORS DUE TO THIS STATE'S IMPOSITION

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

                                                           LBD15793-01-6

A. 10717                            2

OF CHARGES, FEES, ASSESSMENTS, ENVIRONMENTAL STANDARDS AND/OR  ALLOWANCE
AUCTIONS  ON IN-STATE GENERATED POWER THAT ARE NOT IMPOSED AT COMPARABLE
LEVELS OR STRICTURES ON POWER IMPORTED INTO THE STATE. SUCH  METHODOLOGY
FOR  MONITORING  AND REPORTING SHALL BE ESTABLISHED PURSUANT TO A STAKE-
HOLDER PROCESS THROUGH A PROCEEDING TO BE ESTABLISHED BY THE  COMMISSION
WITHIN  ONE  MONTH OF THE EFFECTIVE DATE OF THIS SECTION. THE COMMISSION
SHALL CONSULT WITH THE NEW YORK STATE ENERGY  RESEARCH  AND  DEVELOPMENT
AUTHORITY  AND THE FEDERALLY DESIGNATED BULK SYSTEM OPERATOR SERVING THE
STATE'S ELECTRIC SYSTEM ON HOW BEST TO CREATE  THE  NEEDED  METHODOLOGY.
WITHIN NINE MONTHS OF THE COMMISSION ESTABLISHING THE METHODOLOGY PURSU-
ANT TO THIS SECTION, THE DEPARTMENT SHALL ISSUE A REPORT TO THE GOVERNOR
AND  THE CHAIRS OF THE ENERGY COMMITTEES OF THE ASSEMBLY AND SENATE THAT
DESCRIBES, IN DETAIL, THE NEGATIVE CONSEQUENCES OF IMPORTED POWER EXEMPT
FROM SUCH CHARGES, FEES, ASSESSMENTS AND/OR ALLOWANCE AUCTIONS, AS  WELL
AS  RECOMMENDATIONS  ON  HOW THESE CONSEQUENCES COULD BE MINIMIZED. SUCH
REPORT SHALL REFLECT STAKEHOLDER REVIEW AND  COMMENT  ON  THE  ISSUE  OF
IMPORTED  POWER'S  IMPACT  ON LOCAL EMPLOYMENT AND REVENUES, AND ADVERSE
ENVIRONMENTAL IMPACTS BOTH WITHIN AND OUTSIDE THE STATE.
  2. FOR THE PURPOSES OF THIS SECTION  AND  SECTION  SEVENTY-SEVEN-A  OF
THIS ARTICLE, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
  (A)  "COMPETITIVE  ADVANTAGE"  SHALL  MEAN  ANY ADVANTAGEOUS POSITION,
FINANCIAL OR OTHERWISE, THAT EXISTS FOR AN OUT-OF-STATE POWER  GENERATOR
OVER  AN  IN-STATE POWER GENERATOR IN RELATION TO REQUIREMENTS REGARDING
STATE IMPOSED CHARGES, FEES, ASSESSMENTS, ENVIRONMENTAL STANDARDS AND/OR
ALLOWANCE AUCTIONS. A COMPETITIVE ADVANTAGE  MAY  INCLUDE,  AMONG  OTHER
THINGS,  AVOIDED  COSTS SUCH AS WITHIN NEW YORK STATE SHARED INFRASTRUC-
TURE IMPROVEMENTS, TAXES, PENALTIES, COSTS OF COMPLIANCE TO CLEAN ENERGY
OR ENVIRONMENTAL STANDARDS, AND ADMINISTRATIVE OR REPORTING COSTS.
  (B) "IN-STATE POWER GENERATOR" SHALL MEAN A POWER GENERATION  FACILITY
PHYSICALLY LOCATED IN THIS STATE.
  (C)  "OUT-OF-STATE  POWER  GENERATOR"  SHALL  MEAN  A POWER GENERATION
FACILITY PHYSICALLY LOCATED IN A STATE OR PROVINCE OUTSIDE OF THIS STATE
THAT IS SELLING POWER IN NEW YORK STATE.
  S 2. This act shall take effect immediately.