What's happening
This bill prohibits New York City from purchasing energy transmitted into the state via new international transmission lines that do not provide access to in-state generation.
Why it matters
Protects In-State Energy Producers. By prohibiting New York City from buying energy via new international transmission lines that don’t allow in-state generators access, the bill helps ensure local power plants and renewable projects aren’t sidelined by cheaper or more easily accessed out-of-state or foreign energy.
Influences Future Energy Infrastructure. The legislation could impact how and where new transmission lines are built, potentially discouraging projects that bypass New York generators and instead favoring infrastructure that integrates local energy sources.
Impacts Clean Energy Procurement. Since some international lines (e.g., from Canada) may deliver hydropower or other renewables, this bill may affect the city's ability to count those resources toward climate goals if they don’t provide access for New York-based clean energy.
Asserts Local Control Over Energy Mix. The measure asserts New York’s interest in shaping its own energy mix and grid access, which could have ripple effects for energy prices, reliability, and local jobs in the state’s energy sector.
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Who cares
Headline styles
Ban Foreign Energy Purchases
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 40
History
- Referred to cities
- Referred to cities
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.
Ban Foreign Energy Purchases
In Assembly Committee · Cities · Sponsor Brian Barnwell
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5180
2017-2018 Regular Sessions
IN SENATE
March 10, 2017
Introduced by Sen. MURPHY -- read twice and ordered printed, and when printed to be committed to the Committee on Cities
AN ACT to amend the administrative code of the city of New York, in relation to the authority to contract for energy
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 22-302 of the administrative code of the city of New York is amended to read as follows:
§ 22-302 Acquisition of energy and facilities. The city shall contract for or otherwise purchase or acquire hydroelectric or other forms of energy as shall be available from the power authority of the state of New York, the state, any state agency, any other municipal corporation, or any private or public corporation, and shall arrange to use, lease or acquire the transmission, substation and distribution facilities necessary to furnish such power to the city and, for compensation, to residential, commercial, industrial and other customers; provided, however, that the city will not acquire or build any electric or gas transmission or distribution facilities which are parallel to, or duplicative of electric or gas transmission or distribution facilities of any utility companies within the city, nor take any action to impair any agreements, franchises, rights or obligations of any utility company within the city including, to provide safe, adequate and efficient service to conduct its business in the city and to protect its assets unless so authorized by further local law and public referendum.
Notwithstanding the provisions of any law, rule, regulation, policy, order or executive action to the contrary, the city shall not contract for or otherwise purchase energy or environmental attributes associated with energy from the power authority of the state of New York, or any individual, trustee, partnership, association, corporation, company, municipality, state, political subdivision or other legal entity if such energy is transmitted over an electric transmission line, including but
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10587-01-7
S. 5180 2
not limited to a high voltage direct current electric transmission line, that enters commercial operation after the effective date of the chapter of the laws of two thousand seventeen that added this paragraph and that interconnects a location outside the territorial limits of the United States to a location within the state of New York and such transmission line does not provide access within the state to electric generating facilities located within the state of New York to transmit energy to a location within the state of New York.
§ 2. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the administrative code of the city of New York, in relation to the authority to contract for energy
Purpose
The purpose of this bill is to prevent discrimination against ratepayers and electric generating facilities located in New York State. The discrimination would arise as a result of the City of New York contracting to acquire energy, or environmental attributes associated with energy, that is generated by electric generating facilities located outside of the country and is delivered over transmission lines that do not provide access to electric generating facilities in New York State to transmit their energy within New York State. Those contracts would provide revenue from the City's taxpayers for the construction of new transmission facilities connecting electric generation facilities located outside of the United States with the City of New York without allowing generators located in New York State to connect into the new transmission facilities.
This bill requires that any new transmission lines constructed in New York State to supply the City of New York with electricity generated by electric generating facilities located outside of the country, must also provide access to electric generating facilities in New York State.
Read the full memo (1,091 words)
Summary of provisions
Section 1 of this bill would apply to energy transmitted over an electric transmission line that: (1) may be, but is not limited to, a high voltage direct current electric transmission line; (2) enters commercial operation after the effective date of this act; (3) connects a location outside of the Unites States to a location within New York State; and (4) does not provide access within New York State for the state's electric generating facilities also to transmit their energy over the line to a location in New York state.
Section 1 of the bill would prohibit the City of New York from contracting for or otherwise buying energy, or environmental attributes associated with energy, transmitted over such an electric transmission line, from the New York Power Authority, any company, the State of New York, any municipal entity, or any other legal entity.
Section 2 of the bill provides for an immediate effective date of these provisions.
Justification
The ability of the City of New York to enter into contracts involves the use of its buying power and leverage to command the kinds of goods and services that it desires. The City's economic strength should be used to send signals to markets to help achieve a public purpose that benefits New York State as a whole and is in the public interest.
Transmission lines that originate outside the territorial limits of the United States, and that do not provide access to electric generating facilities in New York to transmit energy within New York state do not sufficiently benefit New York State. These lines do not sufficiently encourage employment opportunities or economic development within the state, and such transmission lines harm energy consumers and electric generating facilities in New York. Transmission projects such as these will: (1) discourage the building of new generating facilities, especially renewable energy resources, in New York State, and transmission lines to transmit energy generated in New York state to where it is needed; (2) discourage the repowering of existing generating facilities within New York State to reduce emissions further in this state; and (3) discourage the rebuilding of existing transmission lines in the state to transmit energy from Upstate to Downstate. Construction and development of transmission lines that provide access to generators in New York State maximizes employment and economic development in New York State and in our nation. Yet, the City of New York is considering buying new energy supplies from Canada that will be delivered over a transmission line that does not provide access to electric generating facilities in New York state, instead of using its economic strength to encourage new electric generation and transmission investment by project developers in this state.
In September of 2016, the Office of Sustainability under New York City Mayor Bill de Blasio issued its "Roadmap to 80 x 50," which acknowledges that the City issued its 2015 Renewable Energy Request for Information (RFI). The document noted that the City is speaking with project developers seeking to import renewable energy from outside the City via high voltage direct current transmission lines. An example of a proposed high voltage direct current transmission line is the Champlain Hudson Power Express (CHPE) transmission line proposed by Transmission Developers Inc. (TDI). The CHPE project is a proposed 333 mile high voltage direct current transmission line that would originate in Quebec, Canada, and come into New York State and down to New York City. The line would bypass existing and new electric generating facilities in New York State, including renewable energy resources; instead, the line would transmit 1,000 megawatts (MW) of primarily Canadian hydropower directly from Canada into New York City. The CHPE project was proposed years ago, but it was never built due to staggering costs, projected at well over $2 billion. In fact, the project is so uneconomic that the only way it could be built is if it were to receive subsidies, most likely from New York ratepayers or the City's taxpayers.
In September of 2015, TDI provided its response to the City's 2015 Renewable Energy RFI and proposed, as one option, its CHPE high voltage direct current transmission line project to provide access to hydropower and wind energy resources in Canada by interconnecting the province of Quebec with the City. If the City of New York were to enter into a contract to buy energy that is transmitted over the CHPE line, the contract would provide the huge subsidy from the City's taxpayers that would be needed for this otherwise uneconomic transmission line to be built.
As the United States moves toward supporting procurement that favors American-made resources at both the national and state levels, the City's contracting power should not be used to enable projects that would import energy from another country while preventing access to electric generating facilities in New York when greater value is derived by investing in New York's own electric system and the economic benefits, tax revenues, and jobs those generation and transmission resources provide to their local communities. New York State and the City of New York cannot afford to send those jobs and revenues to Canada, and such an action would not be in the public interest.
Legislative history
New Bill
Fiscal implications
None
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.