Expands the products which may be purchased for public use

1 Co-sponsor

• Carl L. Marcellino

BILL NUMBER:S2644

Title of bill

An act to amend the environmental conservation law and the general municipal law, in relation to permitting the purchase of renewable energy sources in the awarding of public contracts

Purpose

Provides that certain contracts for products for public use that consider electricity from renewable sources shall not be subject to provisions regarding the lowest bid.

Summary of specific provisions

Section 1: Amends section 3-0301 of the Environmental Conservation Law by adding a new paragraph (00), which encourages municipalities to use renewable energy sources when purchasing products for public use.

Section 2: Amends section 104-a of the general municipal law by including renewable energy as a product which may be purchased for public use. The section also defines "reasonably competitive" prices for renewable energy 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.

Section 3: Provides the effective date.

Present law requires public product contracts to be given to the lowest responsible bidder. Because of this, contracts for electricity from renewable energy are rarely considered due to the fact that in some instances renewable energy is more expensive.

Justification

Under the General Municipal Law, products which are bought for public use must be bought for 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 form of energy, is a logical continuation of the current state policy.

Prior legislative history

S.898 of 2005/06; Referred to Local Government S.4472A of 2007/2008; Referred to Environmental Conservation S.3855 of 2009/2010; Referred to Environmental

Fiscal implications

None.

Effective date

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