Relates to the expansion of natural gas service in this state

1 Co-sponsor

• Patty Ritchie

Title of bill

An act to amend the public service law, the public buildings law, the real property tax law and the public authorities law, in relation to expansion of natural gas service

Purpose

To provide incentives aimed at encouraging the extension of existing gas lines to unserved and under-served areas.

Summary of provisions

Section 1. Legislative intent

Section 2. This section requires the PSC to facilitate contracts with state agencies and local governments with respect to review of permit applications on expansion of natural gas lines.

Section 3. This section requires that no less than fifty million dollars per year from assessments intended to provide funding to advance cleaner, more resilient, more efficient, localized and more affordable energy infrastructure and to enhance the goals of the state energy plan, collected by gas corporations and combination gas and electric corporations from their gas customers be allocated for the purpose of natural gas line extensions.

Section 4. This section mandates that OGS undertake a study on conversion to natural gas heating when a public building is subject to a capital project which requires installation or replacement of a boiler for heating. The study must also consider benefits to the community from an extension of pipeline.

Section 5. This section provides a real property tax exemption at local option to the extent of the increase in the assessed value attributable to the construction of natural gas distribution facilities. The length and percentage of the exemption is determined by local law or resolution.

Section 6. this section creates a real property tax exemption in New York City at local option for the construction of natural gas facilities.

Sections 7, 8 and 9 amend the public authorities to facilitate the purpose of this bill with regard to the New York Power Authority.

Section 10 is the effective date.

Justification

There are currently 555,000 households that lie within 100 feet of an existing gas distribution line, and 500,000 homes that exist beyond 100 feet of a line but within an existing natural gas utility franchise. Many small businesses and other commercial operations are in similar circumstances.

Natural gas prices are at an all-time low and forecasters have predicted that this will be the case for years to come. Access to natural gas can save customers significant amounts annually. In addition, the environmental benefits of natural gas compared to other fuel sources are well documented, including significant reductions in sulfur dioxide, nitrogen dioxide, particulate matter and carbon dioxide.

Natural gas access is a strong tool for job creation, since the reduced costs inherent in using gas to heat a building or warehouse, for example, are a strong incentive for a business to locate in an area that has natural gas service.

This bill provides new incentives to facilitate extension of natural gas lines to spur economic development, create jobs and lower costs for residential customers, businesses and municipalities. This policy is good for consumers, good for business and good for the environment.

Legislative history

New bill - similar to S. 5536C of 2013-14.

Fiscal implications

None.

Effective date

Immediate.