What's happening
This bill streamlines the approval process for New York Power Authority contracts by eliminating mandatory public hearings and gubernatorial approval, requiring only a 30-day public review period and online posting.
Why it matters
Reduces barriers to contract approval. , potentially allowing the New York Power Authority (NYPA) to negotiate and finalize deals more quickly, which could accelerate infrastructure projects and energy initiatives.
Increases reliance on digital transparency. by mandating online posting of proposed contracts, making it easier for the public and stakeholders to access information without the logistical hurdles of in-person hearings.
Shifts decision-making power away from the Governor. , removing a key executive check on NYPA contracts and placing greater trust in the authority’s internal processes, which could raise concerns about oversight and accountability.
Limits formal public engagement. to a 30-day review period without required hearings, lowering opportunities for direct public input or objection compared to the previous process.
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Who cares
Headline styles
Change Power Contract Rules
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to energy and telecommunications
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
7956
IN SENATE
March 13, 2018
Introduced by Sen. GRIFFO -- (at request of the New York Power Authority) -- read twice and ordered printed, and when printed to be committed to the Committee on Energy and Telecommunications
AN ACT to amend the public authorities law, in relation to certain contracts negotiated by the power authority of the state of New York
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 1009 of the public authorities law, as amended by chapter 294 of the laws of 1968, subdivisions 1 and 3 as separately amended by chapters 412 and 521 of the laws of 1984, is amended to read as follows:
§ 1009. Contracts negotiated by authority. Contracts negotiated by the authority as provided in [sub-paragraph] subdivision five or six of section one thousand five of this title shall be entered into and executed as follows:
1. After agreement upon the terms of any such contracts shall have been reached by the authority and its co-party or co-parties, the authority shall (i) promptly transmit a copy of such proposed contract to the governor, the speaker of the assembly, the minority leader of the assembly, the chairman of the assembly committee on ways and means, the temporary president of the senate and the minority leader of the senate and the chairman of the senate finance committee [and shall hold a public hearing or hearings upon the terms thereof. At least thirty days' notice of such hearing shall be given by publication once in each week during such period in each of six newspapers within the state to be selected by the authority. Copies], and (ii) make a copy of the proposed [contracts shall be] contract available for public inspection during such period of thirty days at the office or offices of the authority and at such other places throughout the state as it may designate, and on the authority's public website.
2. Following [such public hearing] the thirty-day period provided for in subdivision one of this section, the authority [shall] may reconsider the terms of the proposed contract [or contracts] and [shall] negotiate such changes and modifications in the contract [or contracts] as it then
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14390-01-8
S. 7956 2
deems necessary or advisable, and provide for the execution of the contract by the authority and its co-party.
[3. When such contract or contracts are finally agreed upon in terms satisfactory to the authority and its co-party or co-parties, and which the authority believes to be in the public interest, the authority shall thereupon report the proposed contract or contracts, together with its recommendations and the record of the public hearings thereon, to the speaker of the assembly, the chairman of the assembly committee on ways and means, the temporary president of the senate, the chairman of the senate finance committee and the governor. The governor shall, within sixty days thereafter, indicate his approval or disapproval thereof and give his reasons therefor.
4. If the governor shall approve such contract, then the same shall be executed by the chairman and secretary of the authority and it shall thereupon come into full force and effect and be binding upon the authority and all other parties thereto in accordance with its terms.]
§ 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 public authorities law, in relation to certain contracts negotiated by the power authority of the state of New York
Purpose of the bill
The purpose of this bill is to modernize the antiquated process that has applied since 1931 to contracts for the sale of electricity generated by facilities of the Power Authority of the State of New York ("NYPA").
Summary of provisions
Section 1 of the bill would amend Public Authorities Law ("PAL") § 1009 to authorize NYPA to execute power contracts that are subject to Section 1009 after NYPA: (1) transmits a copy of the proposed contract to the Governor and specified legislative leaders; and (2) makes a copy of the such proposed contract available for public review at NYPA's offices and on its website for a period of thirty days.
Read the full memo (608 words)
Section 2 of the bill contains the bill's effective date clause, which provides that the act would take effect immediately.
Justification
Since 1931, contracts for the sale of electricity generated by NYPA have been subject to the following process which has been codified in PAL § 1009:
*A copy of the proposed contract must be transmitted to the Governor and legislative leaders. *NYPA must conduct a public hearing on the proposed contract, and give at least 30 days' notice of the public hearing in 6 different newspa- pers. *A copy of the contract must be made available for public inspection for 30 days. *After making any changes to the contract it deems to be appropriate after the public hearing, NYPA must thereafter transmit the proposed final contract to the Governor and legislative leaders. *The Governor has 60 days to approve or disapprove the proposed final contract. *If the Governor approves the contract, NYPA and its co-party may execute the contract.
This process, created over 85 years ago, no longer serves a useful purpose. Public hearings on NYPA power sale contracts almost never draw attendees or result in any public comment on the contracts. The process is also costly. On average, NYPA expends more than $100,000 annually to notice, prepare for, travel to and from all corners of the State, and host the public hearings in accordance with Section 1009. The process is also not necessary to assist in transparency. Allocations of NYPA power and contracts for the sale of such allocations are subject to the approval of NYPA's Board of Trustees. In accordance with the Open Meet- ings Law - which did not exist when the hearing and review process was created - NYPA Trustee meetings are open to the public, and meeting agendas, including proposed contracts, are made public in advance of the meetings. The bill's requirement that NYPA furnish a copy of proposed contracts to the Governor and legislative leaders, and make the proposed contract available for public review for thirty days prior to the execution of the contract, will preserve transparency as well as an opportunity for comment to NYPA on proposed contracts.
Finally, the more streamlined process provided for by the bill would enable NYPA to more effectively support economic development in New York State. New York must be able to compete effectively with other states to attract business and respond promptly to proposed economic development opportunities. The current process on average takes six months to complete. Some businesses have expressed frustration over this process which can affect NYPA's ability to offer firm commitments, such as a low-cost power allocation, to support proposed economic projects.
Budget implications
None. NYPA estimates that the new process would save over $100,000 annu- ally.
Effective date
This act would take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.