What's happening
This bill prohibits using New York ratepayer surcharges to support out-of-state or international energy and excludes such energy from state environmental goals.
Why it matters
Shifts Focus to In-State Clean Energy. By prohibiting ratepayer money from supporting out-of-state or international energy projects, the bill directs financial incentives and investment toward New York-based clean and renewable energy, potentially creating more local jobs and economic activity.
Could Affect Grid Reliability and Costs. Limiting financial support for imported clean energy may reduce the diversity of the state's energy sources, possibly impacting grid reliability or electricity prices, especially if in-state resources cannot fully meet demand or if out-of-state projects offer lower costs.
Alters How Environmental Progress Is Measured. By disallowing energy and associated environmental benefits from out-of-state sources to count toward New York’s environmental goals, the bill raises the bar for meeting state targets, potentially making compliance more challenging and requiring more in-state development.
Responds to Concerns About Ratepayer Fairness and State Policy Control. The bill addresses criticism that state-mandated surcharges unfairly benefit projects or entities outside New York, reinforcing the idea that New Yorkers’ energy payments should serve local interests and policy objectives.
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Who cares
Headline styles
Limit Ratepayer Surcharges Use
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to energy and telecommunications
- Referred to energy and telecommunications
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1260
2019-2020 Regular Sessions
IN SENATE
January 11, 2019
Introduced by Sen. FUNKE -- read twice and ordered printed, and when printed to be committed to the Committee on Energy and Telecommunications
AN ACT to amend the public service law, in relation to limiting surcharges imposed on ratepayers
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The public service law is amended by adding a new section 18 to read as follows:
§ 18. Limits on uses of surcharges imposed on New York ratepayers. Notwithstanding any law, rule, regulation, policy, order or executive action to the contrary, money collected from ratepayers to support any program related to supporting clean or renewable energy or energy efficiency currently in place or any similar successor program, shall not be used to subsidize, incentivize or in any way support energy generated outside of New York state or the United States if such energy is transmitted over an electric transmission line, including but not limited to a high voltage direct current electric transmission line, that enters commercial operation after the effective date of this section and that connects a location outside the territorial limits of the United States to a location within New York state and that does not provide access in New York state to electric generating facilities located in New York state to transmit energy to a location within New York state. Further, energy generated outside of the state, and its related environmental attributes, may not be counted against any environmental goal established by the state or a political subdivision of the state, whether by law, regulation, order, policy or executive action.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07123-01-9
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 service law, in relation to limiting surcharges imposed on ratepayers
Purpose or general idea of bill
To ensure that subsidies for renewable and clean energy projects are used only to support in-state projects
Specific provisions
Section one: Disallows the use of surcharges from any current or future clean energy project from subsidizing projects outside the state or the country. Further, this section makes it clear that environmental attri- butes from such projects may not be counted against emissions goals or standards established for New York State.
Section Two-Sets forth the effective date.
Justification
New York State is engaged in the much needed and beneficial process of reshaping its clean and renewable energy markets through various proceedings active before the Public Service Commission (PSC). These include various programs to subsidize both renewable energy projects as well as Upstate nuclear assets. These subsidies are necessary in order for the State to meet its goal of producing 50% of its energy from clean or renewable sources by 2030. This is a laudable goal that all should support. However, there are real doubts from the energy sector that these goals can be met with in-state resources. Despite the welcome expansion of support for solar and other renewable technologies, it is hard to see how these alone will allow us to meet the 50% goal. While projects like the Champlain-Hudson Power Express, a 333-mile line from Canada directly into New York City have stalled, it is easy to see how this and other projects that would deliver hydropower from Quebec to New York City could restart if they received ratepayer support. The purpose of this bill is to prevent that eventuality from coming to pass. As we move toward supporting procurement that favors American made goods at both the State and National levels. The last thing we should do is allow the contemplation of any policy that would outsource our power generat- ing industry. Allowing the construction and development of new renewable and clean sources of power and appropriate storage technology right here in New York is the proper way to move toward achieving our 50 by 30 goals. The enactment of this bill will quell any speculation that the State will move to subsidize and import hydropower or other sources of clean energy from Canada or any other state. Given the Governor's announcement concerning the closure of Indian Point it is vitally impor- tant that we make it clear that replacement solutions must be constructed here, not imported from other places using ratepayer dollars.
Prior 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.