Extends the expiration of the power for jobs program and the energy cost savings benefits program and authorizes additional voluntary contribution

Summary of specific provisions

Section 1 of the bill amends Economic Development Law (EDL) section 183 (h) and (4) to: (1) extend, from June 20, 2009 to June 30, 20 10, the period during which the eligible busi- nesses may be considered for ECSB program benefits; (2) authorize the EDPAB to expedite the awarding of benefits and defer the review of compliance with program criteria until after applicants have been awarded interim benefits; and (3) authorize ECSB program benefits which are relinquished or withdrawn after the effective date of the bill to be made available for reallocation to eligible businesses.

Sections 2 and 3 of the bill amend EDL section 189(a) (5) (f) and (1)extend from June 30, 2009 to June 30, 2010, the period during which recipients of program benefits may choose to receive an electricity savings reimbursement; (2) extend, June 30, 2009 to June 20, 2010, the period during the EDPAB may recommend allocations of benefits to eligi- ble applicants, and to provide that the term of any contracts for allo- cations of benefits should not extend beyond June 30, 2010; (3) author- ize the EDPAB to expedite the awarding of reimbursements and contract extensions and defer the review compliance with program criteria until after applicants have been awarded a PFJ electricity savings reimburse- ment or contract extension; and (4) authorize any PFJ allocations which are relinquished or withdrawn after the effective date of the bill to be made available for reallocation to eligible businesses.

Section 4 of the bill extends the effective date of Chapter 316 of the Laws of 1997, which created the PFJ program.

Section 5 of the bill amends Tax Law and section 186-a to extend, through and including 2010, the taxable periods through which a utility

that delivers power under the PFJ requirements made applicable to NYPA by Chapter 645.

Section 6 of the bill amends section 7 of Chapter 645 the Laws of 2006 to extend, June 30, 2009 to June 30, 2010, the effective date of certain reporting requirements made applicable NYPA by Chapter 645.

Section 7 of the bill amends Public Authorities Law section 1005 to authorize the NYPA Board of Trustees to contribute to the State the lesser of $20 million, or the value of the tax credits authorized by Tax Law section 186-a(9), to offset losses to the State from gross receipts tax revenues from PFJ contract extensions, and raises the aggregate amount that NYPA may contribute to the State under the PFJ program from $449 million to up to $469 million. Section 9 provide for the severabil- ity of provisions.

Justification

The PFJ and ECSB programs provide reduced power rates to hundreds of businesses statewide. In return, these businesses are required to, among other things, create or retain jobs. Both programs are set to expire on June 30, 2009. By extending these programs for an additional year, the bill would ensure that eligible businesses will continue to receive benefits from the PFJ and ECSB programs. In addi- tion, the bill would authorize PFJ allocations and ECSB program benefits which are relinquished or withdrawn after the effective date of the bill to be made available for reallocation to eligible businesses under the PFJ and ECSB programs. Given that these programs are scheduled to expire on June 30, 2009, the bill would authorize the EDPAB to expedite the awarding of reimbursements and extensions and defer the review of compliance with program criteria until after the applicant has been awarded interim program benefits. This type of authorization was provided to the EDPAB in Chapter 89 of the Laws of 2007 under similar circumstances.

Prior legislative history

This is a new bill. Similar legislation has extended the PFJ and ECSB programs in previous years. See, e.g.,Chapter 645 of the Laws of 2006; Chapter 89 of Laws of 2007; and Chapter 59 of the Laws of 2008 (Part Y).

Fiscal implications

The bill has no State budget impacts. Any lost revenues to the State from the gross receipts tax credit will be offset by a corresponding payment from NYPA to the General Fund.

Effective date

This act shall take effect immediately.