Relates to the allocation of power from the Niagara project

Title of bill

An act to amend the public authorities law, in relation to the allocation of power from the Niagara project

Purpose

This bill balances the need to attract new jobs with the need to retain existing ones located in New York State within thirty miles of the Niagara Power Project.

Summary of provisions

Amends the opening paragraph of subdivision 13 of section 1005 of the public authorities law to require that when businesses located in New York State within thirty miles of the Niagara Power Project relinquish or have been withdrawn from receipt of Expansion Power provided under the public authorities law, the relinquished or withdrawn power shall be redistributed to businesses within the State located within 30 miles of the Project. Fifty percent of such power shall be allocated to new or expanding businesses and fifty percent shall be allocated to existing businesses in the State within the specified 30 miles of the Niagara Power Project.

Justification

Before Western New York can experience any semblance of economic growth via new business creations and existing business expansions, it is vital and necessary that an effort to retain existing businesses begins. Statistics from the U.S. Bureau of Labor Statistics indicate that from 1995-2000, manufacturing jobs in the Buffalo-Niagara Falls Metropolitan Area decreased by 5.4%. Recently, the Niagara and Erie County economies have been further victimized by plant closings or layoffs, including Globe Metallurgical, SGL Carbon, Occidental Chemical, Alox, Nabisco, Moore Business Forms Research Development, Elkem and UCAR Carbon.

In light of these and other indicators of economic decline, especially in the manufacturing and industrial sectors, more needs to be done to retain existing businesses in the region. The struggling economies of Western New York will not grow until the core, existing businesses realize economic stability. To this end, it is imperative for job retention, in concert with job creation, be the focus of any reallocation of Expansion Power in Western New York.

The irony that plant closings abound in the very region responsible for the Niagara Power Project is not lost on the residents of Western New York. Upon the inception of the Niagara Power Project, the State Legislature predicted that "industrial activities in the area would be expanded and increased through the availability of low-cost power from such new hydro-electric power project" (Chapter 792 of the Laws of 1958). However, less than half a century later, this promise has not been realized. In fact, many of the industries in Western New York are struggling just to stay afloat.

This bill is the first step in ensuring that those existing businesses that have been the backbone of Western New York's industrial base be given an equal opportunity to share in any reallocation of Expansion Power with those businesses new to or expanding in Western New York. This bill balances the need to attract new jobs with the need to retain existing ones.

Legislative history

S.2854/A.4903 of 2003/2004; Referred to Senate Energy Committee S.15/A.11665 of 2005/2006; Referred to Senate Energy Committee S.120 of 2007-2008; Referred to Senate Energy Committee

Fiscal implications

None.

Effective date

Immediately.