BILL NUMBER:  S5175

 TITLE OF BILL :

An act to amend the public lands law, in relation to the authority to
grant property rights

 PURPOSE OR GENERAL IDEA OF BILL :

The purpose of this bill is to ensure that the state does not allow
its land under the water of Lake Champlain and the Hudson River to be
used by companies to construct electric transmission lines that
discriminate against electric generating facilities in New York by
providing transmission service to electric generating facilities
located outside of the United States but not providing transmission
service to electric generating facilities in New York to transmit
their energy within New York State.

 SPECIFIC PROVISIONS :

Section 1 of this bill would apply to energy transmitted over an
electric transmission line that: (1) may be, but is not limited to, a
high voltage direct current electric transmission line; (2) enters
commercial operation after the effective date of this act; (3)
connects a location outside of the Unites States to a location within
New York State; and (4) does not provide access within New York State
              

for the state's electric generating facilities also to transmit their
energy over the line.

Section 1 of the bill would prohibit OGS from leasing, or granting
rights or easements to, the bed of Lake Champlain and to the bed of
the Hudson River to any company, any municipal entity, or any other
legal entity to lay such a transmission line.

Section 2 of the bill provides for an immediate effective date of
these provisions.

 JUSTIFICATION :

The land under Lake Champlain came into state ownership though the
Crown of England, and Lake Champlain and Lake George are considered
and treated the same. The Public Lands Law states that Crown lands are
vested in the people of this state. The historic treatment of the Lake
George lake bottom speaks to the treatment of Lake Champlain.

Lake George underwater permits have been issued by OGS, and OGS also
is in charge of permitting on Lake Champlain. The Public Lands Law
allows the OGS Commissioner to grant rights and easements in
perpetuity or otherwise in and to all state lands, including lands
under water, at a price to be determined by the Commissioner.

The ability of the OGS Commissioner to grant rights and easements to
lands under water, such as the land under Lake Champlain and Lake
George, should be limited to instances and purposes that help achieve
a public purpose that benefits New York State as a whole and is in the
public interest.

The granting of rights and easements to lands under the water of Lake
Champlain and Lake George for the laying of a transmission line that
originates outside the territorial limits of the United States, and
that does not provide access to electric generating facilities in New
York to transmit energy within New York state, for the purpose of
importing electricity into this state in a manner that bypasses
exiting generation, including renewable energy in this state, does not
sufficiently benefit New York State and does not sufficiently
encourage employment opportunities or economic development within this
state, and such transmission lines harm electric generating facilities
in New York.

Such a transmission line project will: 1) discourage the building of
new generating facilities, especially renewable energy resources, in
New York State and transmission lines to transmit energy generated in
New York state to where it is needed; (2) discourage the repowering of
existing generating facilities within New York State to reduce
emissions further in this state; and (3) discourage the rebuilding of
existing transmission lines in the state to transmit energy from
Upstate to Downstate. Construction and development of transmission
lines that provide access to electric generating facilities in New
York State maximizes employment and economic development in New York
State and in our nation.

In September of 2016, the Office of Sustainability under New York City
Mayor Bill de Blasi() issued its "Roadmap to 80 x 50," which
acknowledges that the City issued its 2015 Renewable Energy Request
for Information (RFI). The document noted that the City is speaking
with project developers seeking to import renewable energy from
outside the City via high voltage direct current transmission lines.

An example of a proposed high voltage direct current transmission line
is the Champlain Hudson Power Express (CHPE) transmission line
proposed by Transmission Developers Inc. (TDI). The CHPE project is a
proposed 333 mile high voltage direct current transmission line that
would originate in Quebec, Canada, and come into New York State and
down to New York City. Plans call for two, five-inch diameter cables
to be placed underwater or underground. 101.5 miles of the underground
direct current cable would be buried in the land under the water of
Lake Champlain. 67.4 miles of the cable would be buried under the
Hudson River, and 27.3 miles of the cable would be buried under the
Hudson and Harlem Rivers.

The CHPE line would bypass existing and new electric generating
facilities in New York State, including renewable energy resources;
instead, the line would bring 1,000 MW of primarily Canadian
hydropower directly from Canada into New York City. The CHPE project
was proposed years ago, but it was never built due to staggering
costs, projected at well over $2 billion. In fact, the project is so
uneconomic that the only way it could be built is if it were to
receive subsidies, most likely from New York ratepayers or the City's
taxpayers.

In September of 2015, TDI provided its response to the City's 2015
Renewable Energy RFI and proposed its CHPE transmission line project
to provide access to hydropower and wind energy resources by
interconnecting the province of Quebec with the City.

The ability of the OGS Commissioner to grant rights and easements to
lands under the water of Lake Champlain and Lake George should not be
used to enable projects that would import power from another country
when greater value is derived by investing in New York's own electric
system and the economic benefits, tax revenues, and jobs those
generation and transmission resources provide to their local
communities. New York State cannot afford to send those jobs and
revenues to Canada, and such an action would not be in the public
interest.

 PRIOR LEGISLATIVE HISTORY :

New Bill

 FISCAL IMPLICATIONS :

None
 EFFECTIVE DATE :
This act shall take effect immediately.

                                 BILL NUMBER:  S5175A

 TITLE OF BILL :

An act to amend the public lands law, in relation to the authority to
grant property rights

 PURPOSE OR GENERAL IDEA OF BILL :

The purpose of this bill is to ensure that the state does not allow
its land under the water of Lake Champlain and the Hudson River to be
used by companies to construct electric transmission lines that
discriminate against electric generating facilities in New York by
providing transmission service to electric generating facilities
located outside of the United States but not providing transmission
service to electric generating facilities in New York to transmit
their energy within New York State.

 SPECIFIC PROVISIONS :

Section 1 of this bill would apply to energy transmitted over an
electric transmission line that: (1) may be, but is not limited to, a
high voltage direct current electric transmission line; (2) enters
commercial operation after the effective date of this act; (3)
connects a location outside of the Unites States to a location within
New York State; (4) is not a merchant transmission line; and (5) does
              

not provide access within New York State for the state's electric
generating facilities also to transmit their energy over the line.

Section 1 of the bill defines "merchant transmission line" to mean an
electric transmission line and all related facilities, including but
not limited to voltage source converter stations for a high voltage
direct current transmission line, the cost for which is not recovered
from electricity consumers through cost of service rates approved by
any state or federal entity or through a contract between the
developer of the line and any state or local entity, any utility
subject to cost-based regulation, or any related entity.

Section 1 of the bill would prohibit OGS from leasing, or granting
rights or easements to, the bed of Lake Champlain and to the bed of
the Hudson River to any company, any municipal entity, or any other
legal entity to lay such a transmission line.

Section 2 of the bill provides for an immediate effective date of
these provisions.

 JUSTIFICATION :

The land under Lake Champlain came into state ownership though the
Crown of England, and Lake Champlain and Lake George are considered
and treated the same. The Public Lands Law states that Crown lands are
vested in the people of this state. The historic treatment of the Lake
George lake bottom speaks to the treatment of Lake Champlain.

Lake George underwater permits have been issued by OGS, and OGS also
is in charge of permitting on Lake Champlain. The Public Lands Law
allows the OGS Commissioner to grant rights and easements in
perpetuity or otherwise in and to all state lands, including lands
under water, at a price to be determined by the Commissioner.

The ability of the OGS Commissioner to grant rights and easements to
lands under water, such as the land under Lake Champlain and Lake
George, should be limited to instances and purposes that help achieve
a public purpose that benefits New York State as a whole and is in the
public interest.

The granting of rights and easements to lands under the water of Lake
Champlain and Lake George for the laying of a transmission line that
originates outside the territorial limits of the United States, and
that does not provide access to electric generating facilities in New
York to transmit energy within New York state, for the purpose of
importing electricity into this state in a manner that bypasses
exiting generation, including renewable energy in this state, does not
sufficiently benefit New York State and does not sufficiently
encourage employment opportunities or economic development within this
state, and such transmission lines harm electric generating facilities
in New York.

Such a transmission line project will: 1) discourage the building of
new generating facilities, especially renewable energy resources, in
New York State and transmission lines to transmit energy generated in
New York state to where it is needed; (2) discourage the repowering of
existing generating facilities within New York State to reduce
emissions further in this state; and (3) discourage the rebuilding of
existing transmission lines in the state to transmit energy from
Upstate to Downstate. Construction and development of transmission
lines that provide access to electric generating facilities in New
York State maximizes employment and economic development in New York
State and in our nation.

In September of 2016, the Office of Sustainability under New York City
Mayor Bill de Blasio issued its "Roadmap to 80 x 50," which
acknowledges that the City issued its 2015 Renewable Energy Request
for Information (RFI). The document noted that the City is speaking
with project developers seeking to import renewable energy from
outside the City via high voltage direct current transmission lines.

An example of a proposed high voltage direct current transmission line
is the Champlain Hudson Power Express (CHPE) transmission line
proposed by Transmission Developers Inc. (TDI). The CHPE project is a
proposed 333 mile high voltage direct current transmission line that
would originate in Quebec, Canada, and come into New York State and
down to New York City. Plans call for two, five-inch diameter cables
to be placed underwater or underground. 101.5 miles of the underground
direct current cable would be buried in the lard under the water of
Lake Champlain.  67.4 miles of the cable would be buried under the
Hudson River, and 27.3 miles of the cable would be buried under the
Hudson and Harlem Rivers.

The CHPE line would bypass existing and new electric generating
facilities in New York State, including renewable energy resources;
instead, the line would bring 1,000 MW of primarily Canadian
hydropower directly from Canada into New York City. The CHPE project
was proposed years ago, but it was never built due to staggering
coats, projected at well over $2 billion. In fact, the project is so
uneconomic that the only way it could be built is if it were to
receive subsidies, most likely from New York ratepayers or the City's
taxpayers.

In September of 2016, TDI provided its response to the City's 203.5
Renewable Energy PSI and proposed its CHPE transmission line project
to provide access to hydropower and wind energy resources by
interconnecting the province of Quebec with the City.

The ability of the OGS Commissioner to grant rights and easements to
lands under the water of Lake Champlain and Lake George should not be
used to enable projects that would import power from another country
when greater value is derived by investing in New York's own electric
system and the economic benefits, tax revenues, and jobs those
generation and transmission resources provide to their local
communities. New York State cannot afford to send those jobs and

revenues to Canada, and such an action would not be in the public
interest.

 PRIOR LEGISLATIVE HISTORY :

New Bill

 FISCAL IMPLICATIONS :

None

 EFFECTIVE DATE :
This act shall take effect immediately.