Expands the products which may be purchased for public use

Title of bill

An act to amend the general municipal law, in relation to expanding the products which may be purchased for public use

Purpose

To encourage the use of renewable energy by local governments

Summary of provisions

Section 1: Includes renewable energy, as defined by the New York State Public Service Commission as biomass, solar, wind, photovoltaics, methane waste, tidal, geothennal, and fuel cell technologies which may be purchased for public use.

Section 2: Defines "reasonably competitive" prices for renewable energy resources as fifteen percent above the cost of a comparable product. This is the same percentage used in defining "reasonably competitive" for products which a locality can purchase if they are composed of at least fifty percent recycled material.

Justification

Under the General Municipal Law, products which are bought for public use must be bought from the lowest bid. However, under Section 104-a, recycled products can be purchased for public use even if they are not the lowest priced product. As the law currently stands, energy is not included under Section 104-a. However, the aim of the original law was to promote environmentally friendly purchasing or at minimum not discourage the purchasing of environmentally friendly products, therefore it makes sense to include renewable energy. Allowing localities to purchase renewable energy at a slightly higher premium, in lieu of a cheaper but less ecologically sound 1'01111 of energy, is a logical continuation of the current state policy.

Legislative history

S.8565 of 2007/2008 (Passed Senate 2008) A.6571 of 2005/2006 A.10421 of 2003-2004

Fiscal implications

Allows localities to purchase renewable energy. No fiscal impact upon the state.

Effective date

This act shall take effect on the first of January next succeeding the date on which it shall have become a law.