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History
- Referred to corporations, authorities and commissions
- Delivered to assembly
- Passed senateVote 47–13
- Ordered to third reading cal.1523
- Referred to rules
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S7789
Title of bill
An act directing the power authority of the state of New York to release requests for proposals on certain natural gas powered generating facilities in and around New York city.
Purpose
To authorize the sale of certain assets of the New York Power Authority (NYPA) in order to establish a fund to encourage repowering of electric generating facilities.
Summary of provisions
Section one of the bill directs NYPA to issue requests for proposals (RFP) for the purchase of up to ten of NYPA's gas turbine electric generating facilities located in and around New York City.
Section 1 also requires NYPA to deposit proceeds from the sale of such facilities into a special fund for the purposes of (i) incentivizing the repowering of certain electric generating facilities and (ii) funding programs to assist municipal corporations that have been adversely affected by the loss of property tax revenues and/or revenues from payments in lieu of tax agreements.
Section 2 is the effective date.
Justification
Many power plants in NYS are contemplating repowering in order to improve their competitive position in the marketplace. These power plants are prevented from taking steps to repower because of the high costs associated with doing so. By establishing a fund specifically for this purpose, power plants will be incented to invest in re-powering which will lead to improved emissions profiles and long term economic viability.
In addition, these power plants often represent a significant portion of the tax base for the municipality where they are located. Loss of such tax base will be devastating for these communities. In the event that power plants close or downsize, funds should be made available to these municipalities as they transition to becoming less reliant on the power plant taxes. To that end, this bill also provides for funding to be available to assist these communities in these difficult circumstances.
Another substantial benefit of this legislation is the transition of the identified older gas plants from public ownership to private ownership. The sale of these small, natural gas-powered facilities in an around New York City will bring in significant revenue to help during these tough economic times, while also securing future tax revenues to benefit the state for years to come. Furthermore, operating costs associated with these facilities no longer will be a burden on NYPA, as all costs and risks associated with owning and operating the facilities would be on the shoulders of private companies.
It would not be the first time that NYPA sold some of its assets to the private sector. As it is likely that the private sector would be
interested in NYPA's small generation facilities as well. While it is impossible to predict potential offers, it should be noted that, in 2008, TransCanada Corporation purchased the Ravenswood Generating Facility in Queens from National Grid for $2.8 billion---a price that exceeded expectations and demonstrates the level of interest that the private sector takes in worthwhile assets.
Prior legislative history
New bill.
Fiscal implications
None.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.