What's happening
This bill prohibits leasing or granting property rights for electric transmission lines from outside the U.S. into New York via Lake Champlain or the Hudson River, with certain exceptions for merchant lines and upstate-to-downstate transmission.
Why it matters
Restricts foreign electricity imports. By prohibiting new transmission lines from outside the U.S. from crossing New York via Lake Champlain or the Hudson River (unless they meet specific exceptions), the bill could reduce the flow of imported electricity, particularly from Canada, affecting both energy supply and regional energy market dynamics.
Supports local energy and grid priorities. The exceptions for merchant transmission lines and for upstate-to-downstate power flows reflect a policy preference for projects that either operate independently of regulated utility rates or that facilitate delivery of New York-generated electricity to high-demand downstate areas, rather than increasing reliance on foreign power.
Economic and environmental implications. Limiting new cross-border transmission could have impacts on electricity prices, job creation, and New York’s ability to meet clean energy goals, especially if imported hydropower or renewables are made less accessible.
Defines merchant line criteria. The bill clarifies what qualifies as a “merchant transmission line,” focusing on projects that are privately financed and not included in utility rate bases, potentially favoring private investment and competition in transmission infrastructure over government or ratepayer-funded models.
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Who cares
Headline styles
Block Foreign Power Lines
Plain English, a few words. Used as the page title.
Sponsors
2 Co-sponsors
History
- Referred to investigations and government operations
- Referred to investigations and government operations
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1450
2019-2020 Regular Sessions
IN SENATE
January 14, 2019
Introduced by Sens. O'MARA, AMEDORE, ORTT -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations
AN ACT to amend the public lands law, in relation to the authority to grant property rights
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 3 of the public lands law is amended by adding a new subdivision 8 to read as follows:
8. (a) Notwithstanding any law, rule, regulation, policy, order or executive action to the contrary, the commissioner of general services shall not lease, or grant rights or easements to, the bed of Lake Champlain and to the bed of the Hudson River to any individual, trustee, partnership, association, corporation, company, municipality, political subdivision or other legal entity for laying 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 subdivision, if such transmission line interconnects a location outside the territorial limits of the United States to a location within the state and such transmission line: (i) is not a merchant transmission line; or (ii) does not provide access within the upstate region to electric generating facilities located within the upstate region to transmit energy to a location within the downstate region.
(b) For the purposes of this subdivision, a "merchant transmission line" shall mean an electric transmission line and all related facilities, including but not limited to voltage source converter stations for a high voltage direct current transmission line, that: (i) are developed, financed, constructed, and operated without any reliance on costof-service rates set by either a federal or state regulatory entity; and (ii) are not included in the utility rate base, either directly or
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05809-01-9
S. 1450 2
through a contractual arrangement between the developer of the transmission line and any agency, authority or other entity of the state, any municipal subdivision of the state, any utility subject to cost-based regulation, or any instrumentality of any of the foregoing.
(c) For the purposes of this subdivision, "upstate region" shall have the same meaning as in paragraph (b) of subdivision two of section 6-102 of the energy law, and "downstate region" shall have the same meaning as in paragraph (a) of subdivision two of section 6-102 of the energy law.
§ 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 lands law, in relation to the authority to grant property rights
Purpose or general idea of bill
The purpose of this bill is to ensure that the state does not allow its land under the water of Lake Champlain and the Hudson River to be used by companies to construct electric transmission lines that discriminate against electric generating facilities in New York by providing trans- mission service to electric generating facilities located outside of. the United States but not providing transmission service to electric generating facilities in New York to transmit their energy within New York State.
Specific provisions
Section 1 of this bill would apply to energy transmitted over an elec- tric 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; (4) is not a merchant transmission line; and (5) does not provide access within New York State for the state's electric generating facilities also to transmit their energy over the line, (5) does not provide access within the upstate region to electric generating facilities located within the upstate region.
Read the full memo (1,179 words)
Section 1 of the bill defines "merchant transmission line" to mean an electric transmission line and all related facilities, including but not limited to voltage source converter stations for a. high voltage direct current transmission line, the cost for which is not recovered from electricity consumers through cost of service rates approved by any state or federal entity or through a contract between the developer of the line and any state or local entity, any utility subject to cost- based regulation, or any related. entity.
Section 1 of the bill would prohibit CGS from leasing, or granting rights or easements to, the bed of Lake Champlain and to the bed of the Hudson River to any company, any municipal entity, or any other legal entity to lay such a transmission line.
Section 2 of the bill provides for an immediate effective date of these provisions.
Justification
The land under Lake Champlain came into state ownership though the Crown of England, and Lake Champlain and Lake George are considered and treat- ed the same. The Public Lands Law states that Crown lands are vested in the people of this state. The historic treatment of the Lake George lake bottom speaks to the treatment of Lake Champlain.
Lake George underwater permits have been issued by OGS, and OGS also is in charge of permitting on Lake Champlain. The Public Lands Law allows the OGS Commissioner to grant rights and easements in perpetuity or otherwise in and to all state lands, including lands under water, at a price to be determined by the Commissioner.
The ability of the OGS Commissioner to grant rights and easements to lands under water, such as the land under Lake Champlain and Lake George, should be limited to instances and purposes that help achieve a public purpose that benefits New York State as a whole and is in the public interest.
The granting of rights and easements to lands under the water of Lake Champlain and Lake George for the laying of a transmission line that originates outside the territorial limits of the United States, and that does not provide access to electric generating facilities in New York to transmit energy within New York state, for the purpose of importing electricity into this state in a manner that bypasses exiting gener- ation, including renewable energy in this state, does not sufficiently benefit New York State and does not sufficiently encourage employment opportunities or eccnomic development within this state, and such trans- mission lines harm electric generating facilities in New York.
Such a transmission line project 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 Down- state. Construction and development of transmission lines that provide access to electric generating facilities in New York State maximizes employment and economic development in New York State and in our nation.
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 devel- opers 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. Plans call for two, five-inch diameter cables to be placed underwater or underground. 101.5 miles of the underground direct current cable would be buried in the lard under the water of Lake Cham- plain. 67.4 miles of the cable would be buried under the Hudson River, and 27.3 miles of the cable would be buried under the Hudson and Harlem Rivers.
The CHPE line would bypass existing and new electric generating facili- ties in New York State, including renewable energy resources; instead, the line would bring 1,000 MN 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 coats, 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 2016, TDI provided its response to Lhe City's 203.5 Renewable Energy PSI and proposed its CHPE transmission line project to provide access to hydropower and wind energy resources by interconnect- ing the province of Quebec with the City.
The ability of the OGS Commissioner to grant rights and easements to lands under the water of Lake Champlain and Lake George should not be used to enable projects that would import power from another country when greater value is derived by investing in New York's own electric system and the economic benefits, tax revenues, and jobs those gener- ation and transmission resources provide to their local communities. New York State cannot afford to send those jobs and revenues to Canada, and such an action would not be in the public interest.
Prior legislative history
2018 - S5175B
Fiscal implications
None to the state.
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.