Bill Text: NY S00529 | 2017-2018 | General Assembly | Introduced


Bill Title: Directs the public service commission to determine the undue advantages in the state's electricity markets provided to out-of-state generators because of the state's charges, fees, assessments, environmental standards and allowance auctions.

Spectrum: Partisan Bill (Republican 5-0)

Status: (Introduced - Dead) 2018-01-03 - REFERRED TO ENERGY AND TELECOMMUNICATIONS [S00529 Detail]

Download: New_York-2017-S00529-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                           529
                               2017-2018 Regular Sessions
                    IN SENATE
                                       (Prefiled)
                                     January 4, 2017
                                       ___________
        Introduced  by Sens. YOUNG, GRIFFO, LARKIN, RANZENHOFER, RITCHIE -- 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 the effect of
          power importation on electrical markets
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1.  The  public  service  law  is  amended  by adding two new
     2  sections 77-a and 77-b to read as follows:
     3    § 77-a. Legislative intent. The legislature hereby finds and  declares
     4  that it is in the best public policy interest of the state and its citi-
     5  zens  to  ensure  that,  to the greatest extent possible, the letter and
     6  spirit of environmental and renewable energy goals are enforced for  any
     7  generator who does business in the New York state energy markets.
     8    It  is  not  the  intent  of  this legislature to allow generators who
     9  import power into the state to obtain significant competitive advantages
    10  over in-state generators. Such  unjustified  advantages  hurt  New  York
    11  generators,  threaten jobs and local tax bases, and encourage the impor-
    12  tation of pollution intensive power into the state significantly threat-
    13  ening the health of the residents of this state.
    14    The legislature further declares that it is in the best  economic  and
    15  environmental  interests of the state to adopt consistent policies that,
    16  to the greatest extent possible, utilize electrical  power  in  as  cost
    17  efficient  and  environmentally  friendly  means  whether  such power is
    18  generated within the state or is imported from another state or  nation.
    19  Therefore,  the  legislature directs the commission to initiate a stake-
    20  holder process to analyze  the  ways  to  level  the  competitive  field
    21  regarding  in  state  versus imported generation regarding both cost and
    22  mitigating adverse environmental effects.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06236-01-7

        S. 529                              2
     1    § 77-b. The effect of power importation on electrical markets. 1.  The
     2  commission is authorized and directed to determine, through a comprehen-
     3  sive  monitoring and reporting methodology, the undue competitive advan-
     4  tages in the state's electricity markets that out-of-state power genera-
     5  tors  have over in-state power generators due to this state's imposition
     6  of charges, fees, assessments, environmental standards and/or  allowance
     7  auctions  on in-state generated power that are not imposed at comparable
     8  levels or strictures on power imported into the state. Such  methodology
     9  for  monitoring  and reporting shall be established pursuant to a stake-
    10  holder process through a proceeding to be established by the  commission
    11  within  one  month of the effective date of this section. The commission
    12  shall consult with the New York state energy  research  and  development
    13  authority  and the federally designated bulk system operator serving the
    14  state's electric system on how best to create  the  needed  methodology.
    15  Within nine months of the commission establishing the methodology pursu-
    16  ant to this section, the department shall issue a report to the governor
    17  and  the chairs of the energy committees of the assembly and senate that
    18  describes, in detail, the negative consequences of imported power exempt
    19  from such charges, fees, assessments and/or allowance auctions, as  well
    20  as  recommendations  on  how these consequences could be minimized. Such
    21  report shall reflect stakeholder review and  comment  on  the  issue  of
    22  imported  power's  impact  on local employment and revenues, and adverse
    23  environmental impacts both within and outside the state.
    24    2. For the purposes of this section  and  section  seventy-seven-a  of
    25  this article, the following terms shall have the following meanings:
    26    (a)  "Competitive  advantage"  shall  mean  any advantageous position,
    27  financial or otherwise, that exists for an out-of-state power  generator
    28  over  an  in-state power generator in relation to requirements regarding
    29  state imposed charges, fees, assessments, environmental standards and/or
    30  allowance auctions. A competitive advantage  may  include,  among  other
    31  things,  avoided  costs such as within New York state shared infrastruc-
    32  ture improvements, taxes, penalties, costs of compliance to clean energy
    33  or environmental standards, and administrative or reporting costs.
    34    (b) "In-state power generator" shall mean a power generation  facility
    35  physically located in this state.
    36    (c)  "Out-of-state  power  generator"  shall  mean  a power generation
    37  facility physically located in a state or province outside of this state
    38  that is selling power in New York state.
    39    § 2. This act shall take effect immediately.
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