STATE OF NEW YORK ________________________________________________________________________ 9035 IN ASSEMBLY January 21, 2022 ___________ Introduced by M. of A. THIELE, ENGLEBRIGHT -- read once and referred to the Committee on Governmental Operations AN ACT to amend the legislative law, in relation to establishing a legislative commission on the future of the Long Island Power Authori- ty The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The legislative law is amended by adding a new section 83-n 2 to read as follows: 3 § 83-n. Legislative commission on the future of the Long Island Power 4 Authority. 1. The legislature hereby finds and declares that chapter 517 5 of the laws of 1986 created the Long Island Power Authority (LIPA). Said 6 authority was created, in part, because the decisions by LILCO, the 7 private utility that provided electricity to Long Island and part of 8 Queens, "to commence construction of the Shoreham nuclear power plant 9 and thereafter to continue such construction were imprudent". Further, 10 the legislature found in chapter 517 of the laws of 1986 that "a situ- 11 ation threatening the economy, health and safety exists in the service 12 area". One of the two express purposes of the act was the closure of the 13 Shoreham nuclear power plant. In 1992, LIPA bought the Shoreham nuclear 14 power plant. The plant was fully decommissioned in 1994. 15 The second purpose of such chapter 517 was to replace LILCO with a 16 publicly owned power authority. The legislature found that "There is a 17 lack of confidence that the needs of the residents and of commerce and 18 industry in the service area for electricity can be supplied in a reli- 19 able, efficient and economic manner by the Long Island lighting company 20 (hereinafter referred to as "LILCO")" and "Such matters of state concern 21 best can be dealt with by replacing such investor owned utility with a 22 publicly owned power authority." 23 In 1995, LIPA replaced LILCO as the electric company for its service 24 area. However, LIPA was never established as a true "publicly owned 25 power authority" as originally envisioned by the State Legislature. 26 Rather, since 1995, LIPA has opted for a third-party management model EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD13601-08-1A. 9035 2 1 whereby LIPA contracts its responsibility to manage the utility to a 2 private, investor owned utility company. 3 LIPA is the only utility in the nation that is operated under a third- 4 party management model. This model has repeatedly failed its customers. 5 There has been a lack of transparency, oversight, and accountability. 6 This failure has been most dramatically evidenced in the unacceptable 7 storm response by LIPA and its third-party contractors during Superstorm 8 Sandy in 2012 and Tropical Storm Isaias in 2020. 9 After more than 25 years of unsatisfactory management under the third- 10 party management model, a better alternative must be implemented. That 11 inquiry must begin with the original intent of chapter 517, whereby LIPA 12 was to directly manage and operate the utility as a true public power 13 utility. Initial investigations by LIPA after Tropical Storm Isaias in 14 2020-2021 indicate that both ratepayer savings and increased management 15 efficiencies could be achieved through the public power model. 16 Consequently, it is the purpose of this section to implement the 17 original vision for LIPA intended by chapter 517 of the laws of 1986, as 18 a publicly owned power company. The legislature hereby creates a 19 commission to provide the legislature with the specific actions, legis- 20 lation, and timeline necessary to restructure LIPA into a true publicly 21 owned power authority. The public must participate in that process so 22 that the new LIPA becomes transparent with proper oversight and account- 23 ability. The legislative commission shall submit its final report to the 24 legislature no later than April first, two thousand twenty-three. 25 2. A legislative commission is hereby established to investigate and 26 report to the legislature on the establishment of a public power model 27 for the operation of LIPA, whereby the authority would directly operate 28 the utility as a true public power authority. The commission shall 29 report to the legislature on the specific actions, legislation, and 30 timeline necessary to restructure LIPA into a true publicly owned power 31 authority. The commission shall consider: (a) the method of governance 32 of the public authority; (b) improved transparency, accountability, and 33 public involvement; (c) improved reliability of the system; (d) the 34 impact on electric rates; (e) improved storm response; (f) the powers 35 required by LIPA to more effectively operate the utility; (g) the over- 36 sight role of the department of public service and the public service 37 commission over LIPA's operation; (h) the impact on existing bonded 38 indebtedness; (i) improved long term energy planning; (j) compliance 39 with the goals of the New York state climate leadership and community 40 protection act; (k) increased reliance on renewable energy sources to 41 produce electricity; (l) taxation and payments in lieu of taxes; (m) the 42 special needs of communities that are or have been impacted by the 43 siting of power generating facilities; and (n) any other matter relevant 44 to the establishment of a public power model for the operation of LIPA. 45 In its report to the legislature, the commission shall provide for the 46 implementation of the public power model by LIPA no later than December 47 thirty-first, two thousand twenty-five. 48 3. The commission shall consist of eight members to be appointed as 49 follows: three members of the senate shall be appointed by the temporary 50 president of the senate; three members of the assembly shall be 51 appointed by the speaker of the assembly; one member of the senate shall 52 be appointed by the minority leader of the senate; and one member of the 53 assembly shall be appointed by the minority leader of the assembly. Any 54 vacancy that occurs in the commission shall be filled in the same manner 55 in which the original appointment was made. Co-chairs of the commission 56 shall be designated by the temporary president of the senate and theA. 9035 3 1 speaker of the assembly, respectively. No member, officer, or employee 2 of the commission shall be disqualified from holding any other public 3 office or employment, nor shall he or she forfeit any such office or 4 employment by reason of his or her appointment hereunder, notwithstand- 5 ing the provisions of any general, special, or local law, ordinance, or 6 city charter. 7 4. The commission shall establish an advisory committee to actively 8 assist and advise the commission in the preparation of the public power 9 report required to be prepared pursuant to this section. The committee 10 shall consist of not more than fifteen members which shall include but 11 not be limited to representatives of organizations and institutions 12 representing business, labor, local government, Indian nations and 13 tribes, economic development, environmental, energy, social justice, 14 consumer, civic, school districts or higher education interests. The 15 committee by a majority vote shall elect a chairperson. The commission 16 shall meet periodically with the advisory committee, make available 17 working draft and other documents, and shall provide services to the 18 advisory committee as are necessary and appropriate to carry out its 19 functions under this section. Members of the advisory committee shall be 20 residents of the service area. 21 5. The commission may employ and at pleasure remove such personnel as 22 it may deem necessary for the performance of the commission's functions 23 and fix their compensation within the amount appropriated therefor. The 24 commission may hold public and private hearings and otherwise have all 25 of the powers of a legislative committee under this chapter. The members 26 of the commission shall receive no compensation for their services, 27 except as provided pursuant to section five-a of this chapter, but shall 28 be allowed their actual and necessary expenses incurred in the perform- 29 ance of their duties hereunder. 30 6. Employees of the commission shall be considered to be employees of 31 the legislature for all purposes. 32 7. The commission may request and shall receive from any subdivision, 33 department, board, bureau, commission, office, agency or other instru- 34 mentality of the state or of any political subdivision thereof, includ- 35 ing but not limited to the department of public service and the public 36 service commission, such facilities, assistance and data as it deems 37 necessary or desirable for the proper execution of its powers and 38 duties. The office of the state comptroller may, at its discretion, 39 provide to the commission such facilities, assistance, and data as may 40 be requested by the commission. 41 8. The commission is hereby authorized and empowered to make and sign 42 any agreements, and to do and perform any acts that may be necessary, 43 desirable or proper to carry out the purposes and objectives set forth 44 in this section. 45 9. The commission shall hold at least one public hearing with a public 46 comment period in each of the counties comprising the service area of 47 the Long Island Power Authority on the establishment of public power by 48 September thirtieth, two thousand twenty-two and before issuing a draft 49 report. 50 10. No later than December thirty-first, two thousand twenty-two, the 51 commission shall issue a draft report to the members of the legislature 52 regarding the establishment of a public power model for the Long Island 53 Power Authority. The commission shall hold at least one public hearing 54 with a public comment period in each of the counties comprising the 55 service area of the Long Island Power Authority on the draft report noA. 9035 4 1 later than February fifteenth, two thousand twenty-three and before 2 issuing a final report. 3 11. No later than February first, two thousand twenty-three, the comp- 4 troller shall have the discretion to review the draft report and issue 5 to the legislature any recommendations relative to the findings 6 contained in the draft report which relates to the establishment of a 7 public power model for the Long Island Power Authority. 8 12. No later than April first, two thousand twenty-three, the commis- 9 sion shall issue a final report to the members of the legislature 10 regarding the establishment of a public power model for the Long Island 11 Power Authority. Such report shall provide any legislation required to 12 implement the public power model. 13 § 2. Severability clause. If any clause, sentence, paragraph, subdivi- 14 sion, section or part of this act shall be adjudged by any court of 15 competent jurisdiction to be invalid, such judgment shall not affect, 16 impair, or invalidate the remainder thereof, but shall be confined in 17 its operation to the clause, sentence, paragraph, subdivision, section 18 or part thereof directly involved in the controversy in which such judg- 19 ment shall have been rendered. It is hereby declared to be the intent of 20 the legislature that this act would have been enacted even if such 21 invalid provisions had not been included herein. 22 § 3. This act shall take effect immediately; provided, however, that 23 the amendments to article 5-A of the legislative law made by section one 24 of this act shall survive the repeal of such article as provided in 25 section 13 of chapter 141 of the laws of 1994, as amended.