NY State Senate Bill 2015-S4562A

Senate Bill S4562A

2015-2016 Legislative Session

Directs the New York state power authority to issue RFPs on certain gas turbine generators installed in and around the New York metropolitan area

download bill text pdf

Archive: Last Bill Status - In Senate Committee Corporations, Authorities And Commissions Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Feb 12, 2016	print number 4562a
Feb 12, 2016	amend and recommit to corporations, authorities and commissions
Jan 06, 2016	referred to corporations, authorities and commissions returned to senate died in assembly
Jun 16, 2015	referred to corporations, authorities and commissions delivered to assembly passed senate
May 18, 2015	advanced to third reading
May 13, 2015	2nd report cal.
May 12, 2015	1st report cal.660
Mar 27, 2015	referred to corporations, authorities and commissions

Votes

- Jun 16, 2015 - Floor Vote
  S4562A
  
  42
  
  Aye
  
  20
  
  Nay
  
  1
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 16, 2015
      
      aye (42)
      
      Addabbo Jr.
      
      Amedore
      
      Bonacic
      
      Boyle
      
      Carlucci
      
      Croci
      
      DeFrancisco
      
      Diaz
      
      Dilan
      
      Farley
      
      Felder
      
      Flanagan
      
      Funke
      
      Gallivan
      
      Golden
      
      Griffo
      
      Hannon
      
      Klein
      
      LaValle
      
      Lanza
      
      Larkin
      
      Latimer
      
      Libous
      
      Little
      
      Marcellino
      
      Marchione
      
      Martins
      
      Murphy
      
      Nozzolio
      
      O'Mara
      
      Ortt
      
      Ranzenhofer
      
      Ritchie
      
      Robach
      
      Sampson
      
      Savino
      
      Serino
      
      Seward
      
      Skelos
      
      Valesky
      
      Venditto
      
      Young
      
      nay (20)
      
      Avella
      
      Breslin
      
      Comrie
      
      Espaillat
      
      Gianaris
      
      Hamilton
      
      Hassell-Thompson
      
      Hoylman-Sigal
      
      Kennedy
      
      Krueger
      
      Montgomery
      
      Panepinto
      
      Parker
      
      Perkins
      
      Rivera
      
      Sanders Jr.
      
      Serrano
      
      Squadron
      
      Stavisky
      
      Stewart-Cousins
      
      absent (1)
      
      Peralta
  May 11, 2015 - Corporations, Authorities And Commissions Committee Vote
  S4562A
  
  5
  
  Aye
  
  2
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Corporations, Authorities And Commissions Committee Vote: May 11, 2015
      
      aye (5)
      
      Flanagan
      
      Larkin
      
      Martins
      
      Ortt
      
      Ranzenhofer
      
      nay (2)
      
      Perkins
      
      Squadron

Bill Amendments

Original

A (Active)

2015-S4562 - Details

See Assembly Version of this Bill:: A2006
Current Committee:: Senate Corporations, Authorities And Commissions
Law Section:: Public Authorities
Versions Introduced in Other Legislative Sessions:: 2009-2010: S7208
2011-2012: S5406
2013-2014: S4426, A10047

2015-S4562 - Summary

Directs the New York state power authority to issue requests for proposals on certain gas turbine generators installed in and around the New York metropolitan area.

2015-S4562 - Sponsor Memo

                                BILL NUMBER:S4562

TITLE OF BILL:  An act directing the power authority of the state of
New York to release requests for proposals on certain natural gas
powered generating facilities in and around New York city

PURPOSE:  To raise revenue for the Power Authority of the State of New
York through the sale of numerous "peaker" generators in and around
New York City and to provide resources for alternative energy
generation projects within the City.

SUMMARY OF PROVISIONS:

Section one of the bill requires the New York Power Authority ("NYPA")
to issue a request for proposals ("RFP") for the purchase of 10
specified gas turbine electric generating facilities within 90 days of
the effective date. NYPA is required to issue requests to determine
the likely value of the sale of the generators and to submit a report
to the Governor, the Temporary President of the Senate, and the
Speaker of the Assembly regarding the range of bids received. NYPA
will be authorized to sell one or more of the 10 specified gas turbine
electric generating facilities if NYPA and its Trustees find that the
sale or sales are in the best interest of NYPA and the citizens of New
York. The revenue collected from any sale or sales shall be placed in
an account dedicated to reducing the cost of electricity for private
primary and secondary schools in the State.  The Authority shall

create and implement programs to promote energy efficiency, install
renewable energy/clean technologies, and aggregate energy purchases
for private primary and secondary schools in the State.

Section two of the bill provides that this act shall take effect
immediately.

JUSTIFICATION:  New York City faces considerable obstacles in moving
toward a greater reliance on alternative energy sources. It is the
interest of the citizens of New York City and of the entire State to
support new alternative energy generating projects through the
transfer of publicly owned and operated traditional power entities
within the five boroughs to private entities committed to service and
technology upgrades.

Revenues generated from the sale or transfer of the specified gas
turbine electric generating facilities are to be used to encourage the
goals of the GTI Public Interest Advisory Committee (PIAC) for a
cleaner and more reliable energy future.

An ideal candidate for such an endeavor is the New York Power
Authority ("NYPA"). NYPA should issue a Request for Proposals ("RFP")
to sell its small, natural gas-powered facilities in an around New
York City, thereby providing independent power producers with the
opportunity to help trim the budget shortfall while, as the same time,
applying their expertise to the operation of those facilities.  If an
RFP for those generating facilities was issued, it is possible for
NYPA to bring in significant revenue to apply to the city's and
state's future energy requirements. Such transactions should also
benefit the city and state for years to come through the increased tax
revenues that should be realized on an ongoing basis.


In the summer of 2001, NYPA began operating ten natural gas-powered
generating facilities at six sites in New York City, thereby adding
approximately 450 megawatts of energy to NYPA's portfolio. These
facilities were intended to be used as "peaker" plants, needed only in
times of extremely high demand or in case of emergency. The existence
and use of these units by a public entity has been controversial since
the onset, and moving these traditional petrochemical powered units to
the private sector would allow NYPA the opportunity to help move the
city into a brighter and cleaner future through the support of
alternative energy projects such as solar arrays, wind and tidal
generation in partnership with independent private generators.

It would not be the first time that NYPA sold some of its property to
the private sector, and it is likely that interested investors would
be attracted to NYPA's small generation facilities as well. While it
is impossible to predict potential offers, it should be noted that in
2008, TransCanada corporation purchased the Ravenswood Generating
Facility in Queens from National Grid for $2.8 billion---a price that
exceeded expectations and demonstrates the level of attention that the
private sector takes in worthwhile assets.

LEGISLATIVE HISTORY:

2014: S.4426-A - Advanced to Third Reading
2013: S.4426 - Advanced to Third Reading
2012: S.5406-A - Referred to Corporations, Authorities and Commissions
2011: S.5406-A - Referred to Corporations, Authorities and Commissions
2010: S.7208 - Referred to Corporations, Authorities and Commissions

FISCAL IMPLICATIONS:

To be determined.

EFFECTIVE DATE:

This act shall take effect immediately.

2015-S4562 - Bill Text download pdf

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

                                  4562

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                             March 27, 2015
                               ___________

Introduced  by  Sen.  GOLDEN -- read twice and ordered printed, and when
  printed to be committed to the Committee on Corporations,  Authorities
  and Commissions

AN ACT directing the power authority of the state of New York to release
  requests  for  proposals  on  certain  natural  gas powered generating
  facilities in and around New York city

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

  Section 1. (a) The power authority of the state of New York ("authori-
ty")  shall  within  90  days of the effective date of this act, issue a
request for the proposals to purchase from the authority one or more  of
the  ten  gas  turbine  electric  generating facilities with a nameplate
capacity of less than 80 megawatts each, owned by the  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 90 days and  shall  include  the  following
sites and generating 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-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00488-01-5

S. 4562                             2

tors. The authority shall, within 30 days of the end of the solicitation
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.
  (c) The authority, as its trustees deem feasible and in  the  interest
of  the  authority  and  the citizens of the state of New York, shall be
authorized to permit the sale of one or more  of  the  turbine  electric
facilities listed in subdivision (a) of this section. Revenues collected
from  such  sale  or sales shall be placed in a dedicated account in the
custody of the authority  and  used  to  reduce  electricity  costs  for
private  primary  and  secondary  schools  in the state of New York. The
authority shall, as deemed  feasible  and  advisable  by  the  trustees,
create  and implement programs to promote energy efficiency, the instal-
lation of renewable or clean energy technologies, and to aggregate ener-
gy purchases for such private  primary  and  secondary  schools.  As  it
relates  to  renewable  or clean energy projects only those technologies
eligible for net metering under section  66-j  or  66-l  of  the  public
service law shall qualify.
  S  2.  In  order  to measure the effectiveness of the programs created
pursuant to this act, the authority shall issue  a  report  on  July  1,
2017,  and  every  other  year from that date forward. Such report shall
contain information on each program created and shall measure energy and
monetary savings achieved by each private primary or  secondary  school,
as  well  as  full  accounting  of  the funds remaining in the dedicated
account. A copy of the report shall be provided to the temporary  presi-
dent of the senate, the speaker of the assembly, the chair of the senate
energy and telecommunications committee, the chair of the assembly ener-
gy committee and also published on the authority's website.
  S 3. This act shall take effect immediately.

2015-S4562A (ACTIVE) - Details

See Assembly Version of this Bill:: A2006
Current Committee:: Senate Corporations, Authorities And Commissions
Law Section:: Public Authorities
Versions Introduced in Other Legislative Sessions:: 2009-2010: S7208
2011-2012: S5406
2013-2014: S4426, A10047

2015-S4562A (ACTIVE) - Summary

Directs the New York state power authority to issue requests for proposals on certain gas turbine generators installed in and around the New York metropolitan area.

2015-S4562A (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S4562A

 TITLE OF BILL :  An act directing the power authority of the state of
New York to release requests for proposals on certain natural gas
powered generating facilities in and around New York city

 PURPOSE :

To raise revenue for the Power Authority of the State of New York
through the sale of numerous "peaker" generators in and around New
York City and to provide resources for alternative energy generation
projects within the City.

 SUMMARY OF PROVISIONS :

Section one of the bill requires the New York Power Authority ("NYPA")
to issue a request for proposals ("RFP") for the purchase of 10
specified gas turbine electric generating facilities within 90 days of
the effective date. NYPA is required to issue requests to determine
the likely value of the sale of the generators and to submit a report
to the Governor, the Temporary President of the Senate, and the
Speaker of the Assembly regarding the range of bids received. NYPA
will be authorized to sell one or more of the 10 specified gas turbine
electric generating facilities if NYPA and its Trustees find that it
the sale or sales are in the best interest of NYPA and the citizens of
New York. The revenue collected from any sale or sales shall be used

in New York City to encourage alternative energy generation. Such
alternative energy generation projects shall be funded following a
RFP.

Section two of the bill provides that this act shall take effect
immediately.

 JUSTIFICATION :

New York City faces considerable obstacles in moving toward a greater
reliance on alternative energy sources. It is the interest of the
citizens of New York City and of the entire state to support new
alternative energy generating projects through the transfer of
publicly owned and operated traditional power entities within the five
boroughs to private entities committed to service and technology
upgrades.

Revenues generated from the sale or transfer of the specified gas
turbine electric generating facilities are to be used to encourage,
the goals of P1aNYC for a cleaner and more reliable energy future.

An ideal candidate for such an endeavor is the New York Power
Authority ("NYPA"). NYPA should issue a Request for Proposals ("RFP")
to sell its small, natural gas-powered facilities in an around New
York City, there- by providing independent power producers with the
opportunity to help trim the budget shortfall while, as the same time,
applying their expertise to the operation of those facilities.  If an
RFP for those generating facilities was issued, it is possible for
NYPA to bring in significant revenue to apply to the city's and
state's future energy requirements. Such transactions should also
benefit the city and state for years to come through the increased tax
revenues that should be realized on an ongoing basis.

In the Summer of 2001, NYPA began operating ten natural gas-powered
generating facilities at six sites in New York city, thereby adding
approximately 450 megawatts of energy to NYPA's portfolio. These
facilities were intended to be used as "peaker" plants, needed only in
times of extremely high demand or in case of emergency. The existence
and use of these units by a public entity has been controversial since
the onset, and moving these traditional petrochemical powered units to
the private sector would allow NYPA the opportunity to help move the
city into a brighter and cleaner future through the support of
alternative energy projects such as solar arrays, wind and tidal
generation in partnership with independent private generators.

It would not be the first time that NYPA sold some of its property to
the private sector, and it is likely that interested investors would
be attracted to NYPA's small generation facilities as well. While it
is impossible to predict potential offers, it should be noted that, in
2008, TransCanada corporation purchased the Ravenswood Generating
Facility in Queens from National Grid for $2.8 billion---a price that
exceeded expectations and demonstrates the level of attention that the
private sector takes in worthwhile assets.

 PRIOR LEGISLATIVE HISTORY :

2015: S.4562 - Passed the Senate
2014: S.4426-A - 3rd Reading
2013: S.4426 - 3rd Reading
2011-12: S.5406-A - Referred to Corporations, Authorities and
Commissions
2010: S.7208 - Referred to Corporations, Authorities and Commissions

 FISCAL IMPLICATIONS :

The RFP will provide an accurate value, but recent estimates put the
value at a minimum of $200 million apiece.

 EFFECTIVE DATE :
This act shall take effect immediately.

2015-S4562A (ACTIVE) - Bill Text download pdf

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

                                 4562--A

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                             March 27, 2015
                               ___________

Introduced  by  Sen.  GOLDEN -- read twice and ordered printed, and when
  printed to be committed to the Committee on Corporations,  Authorities
  and  Commissions  --  recommitted  to  the  Committee on Corporations,
  Authorities and Commissions in accordance with Senate Rule 6,  sec.  8
  --  committee  discharged,  bill amended, ordered reprinted as amended
  and recommitted to said committee

AN ACT directing the power authority of the state of New York to release
  requests for proposals  on  certain  natural  gas  powered  generating
  facilities in and around New York city

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

  Section 1. (a) The power authority of the state of New York ("authori-
ty") shall within 90 days of the effective date of  this  act,  issue  a
request  for the proposals to purchase from the authority one or more of
the ten gas turbine electric  generating  facilities  with  a  nameplate
capacity  of  less  than 80 megawatts each, owned by the 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 90 days and shall include the following
sites and generating 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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00488-02-6

S. 4562--A                          2

  (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 30 days of the end of the solicitation
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.
  (c) The authority, as its trustees deem feasible and in  the  interest
of  the  authority  and  the citizens of the state of New York, shall be
authorized to permit the sale of one or more  of  the  turbine  electric
facilities listed in subdivision (a) of this section. Revenues collected
from  such  sale  or sales shall be placed in a dedicated account in the
custody of the authority  and  used  to  reduce  electricity  costs  for
private  primary  and  secondary  schools  in the state of New York. The
authority shall, as deemed  feasible  and  advisable  by  the  trustees,
create  and implement programs to promote energy efficiency, the instal-
lation of renewable or clean energy technologies, and to aggregate ener-
gy purchases for such private  primary  and  secondary  schools.  As  it
relates  to  renewable  or clean energy projects only those technologies
eligible for net metering under section  66-j  or  66-l  of  the  public
service law shall qualify.
  S  2.  In  order  to measure the effectiveness of the programs created
pursuant to this act, the authority shall issue  a  report  on  July  1,
2018,  and  every  other  year from that date forward. Such report shall
contain information on each program created and shall measure energy and
monetary savings achieved by each private primary or  secondary  school,
as  well  as  full  accounting  of  the funds remaining in the dedicated
account. A copy of the report shall be provided to the temporary  presi-
dent of the senate, the speaker of the assembly, the chair of the senate
energy and telecommunications committee, the chair of the assembly ener-
gy committee and also published on the authority's website.
  S 3. This act shall take effect immediately.

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