BILL NUMBER:  S529

 TITLE OF BILL :

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

 PURPOSE :

The bill is designed to examine the competitive disadvantages faced by
New York's state power generation facilities associated with the
importation of out of state power, and to ensure that the letter and
spirit of renewable energy goals are enforced with regard to imported
power.

 SUMMARY OF PROVISIONS :

Section 1 adds a new section 77-a subdivision 1 of the public service
law to state legislative intent which specifies that it is in the best
economic and environmental interests of the state that to adopt
consistent policies that to the to the greatest extent possible to
ensure that environmental policy goals are enforced for any generator
that does business in the New York state energy markets.

A new section 77-b is added to direct the public service commission,
through a comprehensive monitoring and reporting methodology, to
              

determine undue competitive advantages in the state's electricity
markets that out-of-state power generators have over in-state power
generators due to the state's imposition of charges, fees,
assessments, environmental standards and/or allowance auctions of
in-state generated power imported into the state. Such methodology
shall be established pursuant to a stakeholder process through a
proceeding established by the commission. The commission is further
directed to report the negative consequences of imported power as well
as how these consequences could be minimized to the governor and the
respective chairs of the senate and assembly energy committees within
9 months of establishing the methodology. The report must reflect
stakeholder review and comment on the impact of imported power's
impact on local employment and revenues, and adverse environmental
impacts both within and outside the state. Subdivision 2 provides
definitions for "competitive advantage", "in-state power generator",
and "out-of-state power generator".

Section 2 provides that this act shall take effect 30 days after
enactment.

 JUSTIFICATION :

Power generators outside of New York that do business in New York,
should not obtain competitive advantages over in-state generators.

It is in the best interest of the state to adopt consistent policies
that, to the greatest extent possible, utilize electrical power in as
cost efficient and environmentally friendly means possible whether the
power is produced within or outside the state of New York.

Policies that encourage unfair competitive advantages for out of state
power producers, threaten jobs and local tax bases and encourage the
importation of pollution intensive power into the state and are a
significant threat to the health of New York residents.  In their
efforts to reach environmental and renewable energy goals, New York
power regulators have increasingly opted to promote and approve
transmission upgrades to the state's electrical grid that obviate the
need for in-state generation of significant megawatts of power.


Instead of promoting the repowering of power plants into cleaner
technology or preservation of in-state generation, they have chosen in
many cases to endorse policies that export New York jobs, revenue, and
control of the power supply. These policies have favored transmission
upgrades, and have had the consequence of encouraging major out of
state power producers to produce more energy, creating more harmful
emissions and negatively impacting the environment.

While these policy decisions appear to have lowered emissions to more
quickly meet the state's emissions reduction goals, the irony is that
in order to meet energy consumption demands of residents and
businesses in the state, out of state power plants are increasing
their energy production, and in many cases, are now producing more
"dirty" power than would have been produced by instate generators that
now are going out of business.

In addition to the detrimental effects upon communities that would
occur if most of our generation is replaced by transmission, PILOT
payments will be at risk and this will create a great deal of angst
and uncertainty in the community, limited power supply in the state
and importation of dirty coal power from out of state will result.

Importing power primarily through transmission upgrades as a priority
policy direction for the state is a detrimental direction to take. It
will hurt our communities and our in-state manufacturers.
Manufacturers need the ability to expand since expansion often entails
a need for more power. Manufacturers are dis-incentivized from
expanding their businesses in New York when there are no easy means to
increasing their power supply, and no base load power plants are
nearby which is the result when power is imported via transmission
lines rather than produced locally.

A key factor that is seemingly not considered by power regulators who
endorse transmission over instate generation, is that for every
megawatt of power that is imported there is an impact on emissions at
other power plants. When dirtier power plants out of state have to
produce more energy, those power plants increase harmful emissions
which hurts the environment more and is in opposition to the spirit
and intent of New York's clean energy goals.

There are upwind and downwind emissions in the air that carry
pollution over New York's borders. Emissions actually are increased as
a result of power plants out of state increasing their power
production to meet the need of New York's bellying-up fossil fuel
plants.

New York has much higher standards for clean power production than
many other states. Replacing our in-state generation with transmission
projects only serves to import dirty power out of bordering states.

The public has a right to know what the sources of our power are and
whether emissions overall are truly being reduced. This bill will
provide a way for a full and accurate analysis of true sources of
power and emissions, and will help state policymakers to make more
informed decisions that will better help to promote policies that are
more in line with the goals of promoting a clean environment while
preserving New York energy independence.

Policymakers in the state should not advance policies that promote out
of state generators to produce increased amounts of dirty power to
meet our state's power needs with costs borne on the backs of
ratepayers. Instead policies should be promoted that encourage private
investment, job creation and clean technology repowering of power
plants. Energy policies that preserve our communities' futures and
serve our state's and the environment's best interests should be
prioritized.
The analysis and reporting that this legislation requires will help to
steer energy policy in a direction that helps improve the environment
overall, not just in New York, will save jobs, and encourage
businesses to grow.

Reliability and congestion on the state's power grid cannot be as
efficiently managed by simply importing power from out of state
generation. In the case of emergency situations such as black-outs,
attacks on the grid or spikes in demand, if we rely solely on
transmitted power, New York is in a weakened position to respond and
solve issues, because decisions are being made by authorities outside
of our jurisdiction.

In contrast, a healthy balance between base load power generation,
local renewable sources and reliable short and long range transmission
in the state is needed to give New York the control that we need, to
help electricity rates stay low, protect consumers and jobs and help
assure a better environmental and economic future for our state.

 LEGISLATIVE HISTORY :

2016: S.8055/A.10717 PASSED SENATE

 FISCAL IMPLICATIONS :

Undetermined

 LOCAL FISCAL IMPLICATIONS :

None.

 EFFECTIVE DATE :
This act shall take effect immediately.