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History
- Print number 4562a
- Amend and recommit to corporations, authorities and commissions
- Referred to corporations, authorities and commissions
- Returned to senate
- Died in assembly
- Referred to corporations, authorities and commissions
- Delivered to assembly
- Passed senateVote 42–20
- Advanced to third reading
- 2nd report cal.
- 1st report cal.660
- Referred to corporations, authorities and commissions
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Directs the New York state power authority to issue RFPs on certain gas turbine generators installed in and around the New York metropolitan area
In Assembly Committee · Corporations, Authorities And Commissions · Sponsor Andrew Hevesi
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
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 raise revenue for the Power Authority of the State of New York through the sale of numerous "peaker" generators in and around New York City and to provide resources for alternative energy generation projects within the City.
Summary of provisions
Section one of the bill requires the New York Power Authority ("NYPA") to issue a request for proposals ("RFP") for the purchase of 10 specified gas turbine electric generating facilities within 90 days of the effective date. NYPA is required to issue requests to determine the likely value of the sale of the generators and to submit a report to the Governor, the Temporary President of the Senate, and the Speaker of the Assembly regarding the range of bids received. NYPA will be authorized to sell one or more of the 10 specified gas turbine electric generating facilities if NYPA and its Trustees find that it the sale or sales are in the best interest of NYPA and the citizens of New York. The revenue collected from any sale or sales shall be used in New York City to encourage alternative energy generation. Such alternative energy generation projects shall be funded following a RFP.
Read the full memo (736 words)
Section two of the bill provides that this act shall take effect immediately.
Justification
New York City faces considerable obstacles in moving toward a greater reliance on alternative energy sources. It is the interest of the citizens of New York City and of the entire state to support new alternative energy generating projects through the transfer of publicly owned and operated traditional power entities within the five boroughs to private entities committed to service and technology upgrades.
Revenues generated from the sale or transfer of the specified gas turbine electric generating facilities are to be used to encourage, the goals of P1aNYC for a cleaner and more reliable energy future.
An ideal candidate for such an endeavor is the New York Power Authority ("NYPA"). NYPA should issue a Request for Proposals ("RFP") to sell its small, natural gas-powered facilities in an around New York City, there- by providing independent power producers with the opportunity to help trim the budget shortfall while, as the same time, applying their expertise to the operation of those facilities. If an RFP for those generating facilities was issued, it is possible for NYPA to bring in significant revenue to apply to the city's and state's future energy requirements. Such transactions should also benefit the city and state for years to come through the increased tax revenues that should be realized on an ongoing basis.
In the Summer of 2001, NYPA began operating ten natural gas-powered generating facilities at six sites in New York city, thereby adding approximately 450 megawatts of energy to NYPA's portfolio. These facilities were intended to be used as "peaker" plants, needed only in times of extremely high demand or in case of emergency. The existence and use of these units by a public entity has been controversial since the onset, and moving these traditional petrochemical powered units to the private sector would allow NYPA the opportunity to help move the city into a brighter and cleaner future through the support of alternative energy projects such as solar arrays, wind and tidal generation in partnership with independent private generators.
It would not be the first time that NYPA sold some of its property to the private sector, and it is likely that interested investors would be attracted to 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 attention that the private sector takes in worthwhile assets.
Prior legislative history
2015: S.4562 - Passed the Senate 2014: S.4426-A - 3rd Reading 2013: S.4426 - 3rd Reading 2011-12: S.5406-A - Referred to Corporations, Authorities and Commissions 2010: S.7208 - Referred to Corporations, Authorities and Commissions
Fiscal implications
The RFP will provide an accurate value, but recent estimates put the value at a minimum of $200 million apiece.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.