Enacts the northern New York power proceeds allocation act

Summary of provisions

Section 1 of the bill is the short title "northern New York power proceeds allocation act."

Section 2 of the bill amends economic development law to create a new Article 6-B to be known as the "northern New York power proceeds allocation act." Section 189-e, provides definitions for purposes of this article, including defining "benefits" or "fund benefits" to be payments to eligible applicants selected by the authority for the funding of development power projects with monies derived from net earnings that have deposited into the northern new York economic development fund.

Defines "eligible development power projects" in the case of projects receiving an allocation of development power net earnings to be economic development projects located in St. Lawrence County or in the case of projects receiving an allocation of preservation power net earnings, to be those in St. Lawrence, Jefferson or Franklin Counties.

Defines "Development power" to be the unallocated portion of 20 MW of firm Saint Lawrence-FDR hydroelectric power. Defines "preservation power net earnings" to be the aggregate excess of revenues from the sale of up to 10 MW of preservation power and energy produced at the St. Lawrence-FDR project over the revenues that would have been received had such energy been sold on a firm basis to an eligible preservation power customer.

Establishes a "Northern New York Economic Development Fund" into which all development and preservation power net earnings are to be deposited into.

Section 189-f establishes the powers and duties of the board to consist of five members three of which shall be appointed upon the recommendation of the governor as follows: one of whom shall be appointed by the temporary president of the senate and one of whom shall be appointed upon the recommendation of the speaker of the assembly. Specifies that at least three of the members shall reside in the towns of Lisbon, Louisville, Massena, or Waddington provided that all of the members shall reside in St. Lawrence County and the governor shall designate a chair from amongst the board's members.

Specifies that the board shall recommend to NYPA the allocation of fund benefits or power allocations to eligible power projects that the

board finds are consistent with the applicable criteria provided however, development power and preservation power proceeds equaling seventy percent of available monetized power shall annually be allocated to eligible applicants jointly recommended pursuant to a vote of the St. Lawrence River Valley Redevelopment Agency and the Saint Lawrence County Industrial Development Agency Local Development Corporation; provided further that development power proceeds equaling thirty percent of available monetized development power shall annually be allocated for the purposes of providing state matches if necessary for funding the design, development, construction and other costs associated with a highway transportation capacity expansion project located in the county of St. Lawrence, for the purpose of creating an expressway that would not be an interstate but mostly a four lane road.

Section 189-h provides for the establishment of rules and regulations necessary to carry out the purposes of the act.

Section 3 of the bill amends Section 1005 of the Public Authorities Law is by adding five new subdivisions 24, 25, 26, 27, and 28 which among other things, requires a an annual report to be prepared that provides an accounting of (a) the amount of development power and preservation power sold into the wholesale market by the authority, and (b) the development power and preservation power net earnings paid into the northern New York economic development fund.

Section 4 provides that this act shall take effect immediately.

Justification

In Western New York a program has been in place to allow for the monetization of certain power resources for the benefit of the host communities. But, a program allowing for the monetization of certain power resources in Northern New York has not been established. This legislation creates a program that will allow for the monetization of unallocated power to be used for the purposes of the Northern New York Economic Development Fund.

Legislative history

New Bill.

Fiscal implications

Minimal.

Effective date

This act shall take effect immediately.