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S6916Senate2019-2020 Session

Expand Power Earnings Flexibility

Official title

“Relates to the amount of St. Lawrence county economic development power that may be used by the New York Power Authority to generate net earnings”

Sponsor Joseph A. GriffoSD-47Affects Environment & Energy
Status
In Senate Committee
Energy And Telecommunications
Impact
4/10
Low
Passage
0%

Bill progress

Step 2 of 7

In committee · Energy And Telecommunications

What's happening

This bill removes a planned reduction in the amount of St. Lawrence County economic development power that can generate net earnings for the New York Power Authority.

Why it matters

  1. Prevents a future cap reduction. By removing the planned decrease from 20 megawatts to 10 megawatts after five years, the bill ensures the New York Power Authority (NYPA) can continue generating more net earnings from unallocated St. Lawrence County economic development power.

  2. Sustains funding for local projects. Keeping the higher cap allows the northern New York economic development fund to potentially receive more money, supporting ongoing and future energy-related and economic development projects in the region.

  3. Boosts regional economic stability. The additional net earnings help maintain or expand programs that promote job creation, infrastructure improvements, and energy services, benefitting St. Lawrence County and surrounding communities.

  4. Increases flexibility for NYPA. The NYPA retains greater authority to manage unallocated economic development power, which can be important if local demand for power allocations changes or grows more slowly than anticipated.

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Who cares

Headline styles

Expand Power Earnings Flexibility

Plain English, a few words. Used as the page title.

Sponsors

Primary sponsor
Joseph A. Griffo

Senator · Senate District 47

No co-sponsors yet.

History

  1. Referred to energy and telecommunications
  2. Referred to rules

Full text

2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗

STATE OF NEW YORK

6916

2019-2020 Regular Sessions

IN SENATE

December 20, 2019

Introduced by Sen. GRIFFO -- read twice and ordered printed, and when printed to be committed to the Committee on Rules

AN ACT to amend the public authorities law, in relation to the amount of St. Lawrence county economic development power that may be used by the New York Power Authority to generate net earnings

The People of the State of New York, represented in Senate and Assembly, do enact as follows:

Section 1. Paragraph (c) of subdivision 24 of section 1005 of the public authorities law, as added by chapter 545 of the laws of 2014, is amended to read as follows:

(c) The authority shall establish an account to be known as the northern New York economic development fund, which shall consist solely of net earnings. The authority, as determined to be feasible and advisable by the trustees, shall deposit net earnings into the fund no less than quarterly, provided, however, that the amount of St. Lawrence county economic development power that may be used by the authority to generate net earnings shall not exceed the lesser of twenty megawatts or the amount of St. Lawrence county economic development power that has not been allocated by the authority under the authority-TMED contract for sub-allocations[, and provided further that beginning five years from the effective date of this subdivision, the amount of St. Lawrence county economic development power that may be used by the authority to generate net earnings shall not exceed the lesser of ten megawatts or the amount of St. Lawrence county economic development power that has not been allocated by the authority under the authority-TMED contract for sub-allocations]. At least fifteen percent of net earnings paid into the fund shall be dedicated to eligible projects which are energy-related projects, programs and services as such term is defined in subparagraph two of paragraph (b) of subdivision seventeen of this section. In addition to funding eligible projects, the authority may use northern New York economic development fund monies to cover reasonable costs and

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD14526-01-9

S. 6916 2

expenses of the authority related to the management and administration of the northern New York power proceeds allocation program created by article seven-A of the economic development 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 authorities law, in relation to the amount of St. Lawrence county economic development power that may be used by the New York Power Authority to generate net earnings

Purpose or general idea of bill

The purpose of this bill is to extend, for an indefinite period of time, the program funded by the sale of certain unallocated hydropower produced by the Power Authority of the State of New York (NYPA) at its St. Lawrence-FDR Power Project to support economic development in St. Lawrence County.

Summary of specific provisions

Section 1 of the bill removes from statute the reduction from 20 mega- watts to ten megawatts that is eligible for monetization for economic development purposes in St. Lawrence County; this allows for 20 mega- watts to be monetized indefinitely.

Section 2 marks the effective date.

Justification

In 2014, per an agreement between the county of St. Lawrence, the gover- nor of the state of New York and the New York Power Authority (NYPA), the Legislature passed and the governor signed into law the Northern New York Power Proceeds Allocation Act. The program was based on the previ- ously enacted Western New York Power Proceeds Allocation Act.

The program was created to support eligible economic development projects located or proposed to be located in St. Lawrence County by eligible applicants. The program is funded by the sale of certain unal- located hydropower produced by NYPA at its St. Lawrence-FDR Power Project, which has been made available to the Town of Massena electric Department under a contract with NYPA entered into in 2012 entitled "Agreement Governing the Sale of St. Lawrence-PDR Project Power and Energy" to the Town of Massena Electric Department for Economic Develop- ment Purposes."

As of December 29, 2019, the megawatts eligible to be monetized for the purposes of economic development in St. Lawrence County has be reduced to ten. This bill would remove the provision of law that resulted in this reduction, restore the 20 megawatts that existed from 2014 to the end of 2019, and provide for that megawatt monetization level to contin- ue in perpetuity.

Prior legislative history

This is a 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.