Expands the products which may be purchased for public use

Section 2 of this bill would define "reasonably competitive" prices for renewable energy resources as ten percent above the cost of a comparable product. This amount is the same percentage used in defining "reasonably competitive" for recycled products.

Existing law

Present law requires public product contracts to be given to the lowest responsible bidder. Because of this requirement, contracts for electricity from renewable energy resources might not be considered, due to the fact that some renewable energy resources may cost more than other sources of electricity.

The Energy Law has included a definition of renewable energy resources since 1976.

Justification

New York State's energy policy is to obtain and maintain safe, reliable, and diverse energy supplies, accelerate the development and use of renewable energy resources, and increase its energy independence, in order to promote the State's economic growth, to maintain the security of its energy supplies, and to protect its environmental values. New York's existing facilities are powered by a mix of fuels. As an extension of that fuel diversity policy, the State has committed to increasing renewable energy supplies.

Among other provisions, Executive Order 111 encourages localities to increase their purchases of renewable energy resources. Local governments are considering purchasing renewable energy resources, and some have passed local laws and resolutions to allow the increase of those purchases.

Under the General Municipal Law, products which are purchased for public use must be bought from the lowest responsible bidder. However, under Section 104-a, recycled products can be purchased for public use, even if they are not the lowest priced product. Renewable energy resources currently are not included under provisions of Section 104-a. However, the aim of this original law was to not discourage purchasing practices which advance the goals of state policies, such as increasing the use of recycled products or renewable energy resources.

Among other provisions, Article 9 of the Energy Law allows municipalities to enter into energy performance contracts for purposes such as developing alternate sources of energy. In lieu of any other competitive procurement or acquisition process that may apply pursuant to any other provision of law, a municipality may procure an energy performance contractor by issuing and advertising a written request for proposals in accordance with procurement or internal control policies, procedures, or guidelines that the municipality has adopted. Section 103 of the General Municipal Law does not apply to an energy performance contract for which a written request for proposals is issued.

This bill also would exempt reasonably competitive purchases of renewable energy resources by municipal officials from the requirements of Section 103 of the General Municipal Law.

Legislative history

2005-06: A.11875 - Assembly Local Governments/S.7199 - Passed Senate 2007-08: A.2965 - Assembly Local Governments/S.7341- Passed Senate

Fiscal implications

None.

Effective date

This act shall take effect January 1st next succeeding the date of enactment.