Creates the economic benefit power program

* Creates the new Economic Benefit Power Program (EBPP) beginning on July 1, 2011 to provide blended discounted market power and/or allocations of hydroelectricity to qualified businesses;

* Provides for EBPP award contracts of up to seven years with the opportunity for mutually agreed annual one-year renewals for companies meeting compliance criteria and objectives;

* Expands and refines award criteria to provide for consideration of, among other factors: job retention; job creation; capital investments; local economic impact and importance including any "multiplier effect"; past and committed investment in energy efficiency and/or distributed generation; character and quality of the jobs retained or committed; relative impact of energy costs to the applicants operations and competitiveness; criticality of the services provided by the applicant to the community, and; prior performance under other economic development programs;

* Restructures and expands the Economic Development Power Allocation Board (EDPAB) to consist of nine members: the president of the urban development corporation who shall chair the committee; the president of NYSERDA; the president of the power authority of NYS; two appointed by the temporary president of the Senate; two appointed by the Speaker of the Assembly; and one each appointed by the minority leaders the Senate and Assembly;

* Provides for reallocation of relinquished or withdrawn awards under both the existing programs and the new EBPP;

* Provide for a phased five-year redeployment of a substantial portion of NYPA hydro-electric power from rural and domestic customers to the EBPP for economic development and job creation and retention; provided however that for the first two years of the EBPP, the rural and domestic customers will receive 100% of the hydro electric power cost benefits that they received in 2009i such benefits will be partially phased down over the next three years and then frozen at $40 million annually, more than half of the 2009 benefit level; * Encourages coordination and facilitation of access to the various state economic development opportunities for applicants as among EDC, EDPAB, NYPA, NYSERDA, and other arms of state government, and to facilitate as far as practicable "one-stop" shopping for applicants in accessing such programs.

Justification

The current Power for Jobs and Energy Cost Savings Benefit Programs expire May 15, 2010. Making the state's economic benefit power programs permanent and creating the opportunity for long-term award contracts under those programs is critical to giving current and prospective business participants in these programs the certainty and stability necessary to encourage them to stay in, come to, and invest in New York State and to retain and create quality jobs essential to growing our economy. This legislation would accomplish that goal while consolidating existing programs, making access by applicants easier, smoothly transitioning current program recipients and holding-harmless current low-income residential hydro-power beneficiaries.

Prior legislative history

A new bill.

Fiscal implications

None. The costs would be paid for by a combination of revenues raised from the sale of low-cost hydroelectric power, market power purchased by NYPA and other funds of NYPA as deemed feasible and advisable by the trustees.

Effective date

This legislation would be effective immediately upon being signed into law.