Bill Text: NY S05835 | 2011-2012 | General Assembly | Introduced
Bill Title: Relates to establishing the western New York power proceeds allocation board.
Sponsorship: Slight Partisan Bill (Republican 2-1)
Status: (Introduced - Dead) 2012-02-14 - REPORTED AND COMMITTED TO FINANCE [S05835 Detail]
Download: New_York-2011-S05835-Introduced.html
S T A T E O F N E W Y O R K
________________________________________________________________________
5835
2011-2012 Regular Sessions
I N S E N A T E
June 21, 2011
___________
Introduced by Sen. MAZIARZ -- read twice and ordered printed, and when
printed to be committed to the Committee on Rules
AN ACT to amend the economic development law and the public authorities
law, in relation to establishing the western New York power proceeds
allocation board; and to repeal chapter 436 of the laws of 2010 amend-
ing the public authorities law and the economic development law,
relating to authorizing unallocated expansion or replacement power to
be allocated for western New York economic development fund benefits
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Short title. This act shall be known as the "western New
2 York power proceeds allocation act".
3 S 2. The economic development law is amended by adding a new article
4 6-A to read as follows:
5 ARTICLE 6-A
6 WESTERN NEW YORK POWER PROCEEDS ALLOCATION ACT
7 SECTION 189-A. DEFINITIONS.
8 189-B. THE WESTERN NEW YORK POWER PROCEEDS ALLOCATION BOARD.
9 189-C. GENERAL POWERS AND DUTIES OF THE BOARD.
10 189-D. RULES AND REGULATIONS.
11 S 189-A. DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE, THE FOLLOWING
12 TERMS SHALL HAVE THE FOLLOWING MEANINGS: 1. "AUTHORITY" IS THE POWER
13 AUTHORITY OF THE STATE OF NEW YORK.
14 2. "BOARD" IS THE WESTERN NEW YORK POWER PROCEEDS ALLOCATION BOARD
15 CREATED BY THIS ARTICLE.
16 3. "BENEFITS" OR "FUND BENEFITS" ARE PAYMENTS TO APPLICANTS SELECTED
17 IN ORDER TO FUND ELIGIBLE PROJECTS WITH MONIES DERIVED FROM NET EARNINGS
18 THAT HAVE BEEN DEPOSITED INTO THE WESTERN NEW YORK ECONOMIC DEVELOPMENT
19 FUND.
20 4. "CORPORATION" IS THE NEW YORK STATE URBAN DEVELOPMENT CORPORATION
21 DOING BUSINESS AS THE EMPIRE STATE DEVELOPMENT CORPORATION.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13201-02-1
S. 5835 2
1 5. "ELIGIBLE PROJECTS" ARE ECONOMIC DEVELOPMENT PROJECTS THAT ARE
2 LOCATED WITHIN A THIRTY-MILE RADIUS OF THE NIAGARA POWER PROJECT LOCATED
3 IN LEWISTON, NEW YORK THAT WILL SUPPORT THE GROWTH OF BUSINESSES IN THE
4 STATE AND THEREBY LEAD TO THE CREATION OR MAINTENANCE OF JOBS AND TAX
5 REVENUES FOR THE STATE. ELIGIBLE PROJECTS MAY INCLUDE CAPITAL INVEST-
6 MENTS IN PLANT AND EQUIPMENT, AND ASSOCIATED BUILDINGS AND INFRASTRUC-
7 TURE (COLLECTIVELY, "INFRASTRUCTURE") OWNED BY AN APPLICANT FOR FUND
8 BENEFITS, INCLUDING TRANSPORTATION PROJECTS UNDER STATE OR FEDERALLY
9 APPROVED PLANS; REMOVAL OF HAZARDOUS OR CONTAMINATED CONDITIONS AT
10 INFRASTRUCTURE SITES; THE ACQUISITION OF LAND NEEDED FOR INFRASTRUCTURE;
11 RESEARCH AND DEVELOPMENT WHERE THE RESULTS OF SUCH RESEARCH AND DEVELOP-
12 MENT WILL DIRECTLY BENEFIT NEW YORK STATE; SUPPORT FOR TOURISM AND
13 MARKETING AND ADVERTISING EFFORTS FOR WESTERN NEW YORK STATE TOURISM AND
14 BUSINESS AND FOR OTHER SIMILAR USES AND ACTIVITIES. ELIGIBLE PROJECTS DO
15 NOT INCLUDE, AND FUND BENEFITS MAY NOT BE USED FOR, PUBLIC INTEREST
16 ADVERTISING OR ADVOCACY; LOBBYING; THE SUPPORT OR OPPOSITION OF ANY
17 CANDIDATE FOR PUBLIC OFFICE; THE SUPPORT OR OPPOSITION TO ANY PUBLIC
18 ISSUE; LEGAL FEES RELATED TO LITIGATION OF ANY KIND; EXPENSES RELATED TO
19 ADMINISTRATIVE PROCEEDINGS BEFORE STATE OR LOCAL AGENCIES; RETAIL BUSI-
20 NESSES AS DEFINED BY THE BOARD, INCLUDING, WITHOUT LIMITATION, SPORTS
21 VENUES, GAMING AND GAMBLING OR ENTERTAINMENT-RELATED ESTABLISHMENTS,
22 RESIDENTIAL PROPERTIES, OR PLACES OF OVERNIGHT ACCOMMODATION; OR FOR
23 SIMILAR USES OR ACTIVITIES.
24 6. "EXPANSION POWER" IS THE TWO HUNDRED FIFTY MEGAWATTS OF FIRM
25 NIAGARA PROJECT HYDROELECTRIC POWER AND "REPLACEMENT POWER" IS THE FOUR
26 HUNDRED FORTY-FIVE MEGAWATTS OF FIRM NIAGARA PROJECT HYDROELECTRIC POWER
27 AS SUCH TERMS ARE DEFINED IN SUBDIVISION THIRTEEN OF SECTION ONE THOU-
28 SAND FIVE OF THE PUBLIC AUTHORITIES LAW. FOR PURPOSES OF THIS SECTION,
29 EXPANSION AND REPLACEMENT POWER INCLUDES THE ENERGY ASSOCIATED WITH SUCH
30 POWER. NOTWITHSTANDING ANY LAW, RULE, REGULATION, OR POLICY TO THE
31 CONTRARY, AS OF THE FIRST DAY OF JULY, TWO THOUSAND TWELVE THE TERM
32 REPLACEMENT POWER AS USED IN THIS ARTICLE INCLUDES A CERTAIN SEVENTY
33 MEGAWATTS OF POWER THAT IS REFERRED TO IN SECTION ONE THOUSAND FIVE OF
34 THE PUBLIC AUTHORITIES LAW.
35 7. "NET EARNINGS" IS THE AGGREGATE EXCESS OF REVENUES RECEIVED BY THE
36 POWER AUTHORITY OF THE STATE OF NEW YORK FROM THE SALE OF EXPANSION AND
37 REPLACEMENT POWER AND ENERGY PRODUCED AT THE NIAGARA PROJECT THAT WAS
38 SOLD IN THE WHOLESALE ENERGY MARKET OVER WHAT REVENUES WOULD HAVE BEEN
39 RECEIVED HAD SUCH ENERGY BEEN SOLD ON A FIRM BASIS TO AN ELIGIBLE EXPAN-
40 SION OR REPLACEMENT POWER CUSTOMER UNDER THE APPLICABLE TARIFF OR
41 CONTRACT.
42 8. "WESTERN NEW YORK ECONOMIC DEVELOPMENT FUND" OR "FUND" IS A FUND OF
43 THE CORPORATION INTO WHICH ALL NET EARNINGS ARE DEPOSITED BY THE AUTHOR-
44 ITY AND FROM WHICH ALLOCATIONS OF FUND BENEFITS TO ELIGIBLE PROJECTS MAY
45 BE MADE.
46 S 189-B. THE WESTERN NEW YORK POWER PROCEEDS ALLOCATION BOARD. 1.
47 THERE IS HEREBY CREATED THE WESTERN NEW YORK POWER PROCEEDS ALLOCATION
48 BOARD, WHICH SHALL POSSESS THE POWERS AND DUTIES HEREIN SPECIFIED. THE
49 BOARD SHALL CONSIST OF FIVE MEMBERS WHO SHALL BE APPOINTED BY THE GOVER-
50 NOR AS FOLLOWS: ONE OF WHOM SHALL BE APPOINTED UPON THE RECOMMENDATION
51 OF THE TEMPORARY PRESIDENT OF THE SENATE AND SHALL RESIDE WITHIN THE
52 30-MILE RADIUS OF THE NIAGARA POWER PROJECT AND ONE OF WHOM SHALL BE
53 APPOINTED UPON THE RECOMMENDATION OF THE SPEAKER OF THE ASSEMBLY AND
54 SHALL RESIDE WITHIN THE 30-MILE RADIUS OF THE NIAGARA POWER PROJECT. AT
55 LEAST ONE ADDITIONAL MEMBER SHALL ALSO RESIDE WITHIN THE 30-MILE RADIUS
S. 5835 3
1 OF THE NIAGARA POWER PROJECT. THE GOVERNOR SHALL DESIGNATE A CHAIR FROM
2 AMONGST THE BOARD'S MEMBERS.
3 2. EACH MEMBER SHALL SERVE A TERM OF FIVE YEARS OR UNTIL A SUCCESSOR
4 SHALL HAVE BEEN NAMED AND QUALIFIED. MEMBERS MAY BE REAPPOINTED TO
5 SUCCESSIVE TERMS.
6 3. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, THREE
7 MEMBERS SHALL CONSTITUTE A QUORUM FOR THE PURPOSES OF ORGANIZING THE
8 BOARD AND CONDUCTING THE BUSINESS THEREOF; AND NO ACTION OF THE BOARD
9 MAY BE TAKEN EXCEPT UPON AN AFFIRMATIVE VOTE OF AT LEAST THREE-FIFTHS OF
10 THE FULL BOARD MEMBERSHIP AT ANY MEETING AT WHICH AT LEAST THREE MEMBERS
11 ARE PRESENT OR PARTICIPATING BY VIDEOCONFERENCING. VIDEOCONFERENCING
12 MAY BE USED FOR ATTENDANCE AND PARTICIPATION BY MEMBERS OF THE BOARD. IF
13 VIDEOCONFERENCING IS USED, THE BOARD SHALL PROVIDE AN OPPORTUNITY FOR
14 THE PUBLIC TO ATTEND, LISTEN AND OBSERVE AT ANY SITE AT WHICH A MEMBER
15 PARTICIPATES. THE PUBLIC NOTICE FOR THE MEETING SHALL IDENTIFY, IF PRAC-
16 TICABLE, ALL LOCATIONS WHERE A MEMBER WILL PARTICIPATE IN THE MEETING BY
17 VIDEOCONFERENCE AND SHALL STATE THAT THE PUBLIC HAS THE RIGHT TO ATTEND
18 THE MEETING AT ANY SUCH LOCATION.
19 4. MEMBERS OF THE BOARD, EXCEPT THOSE THAT ARE EMPLOYEES OR OFFICERS
20 OF THE STATE, ITS AUTHORITIES OR AGENCIES, SHALL NOT RECEIVE A SALARY OR
21 OTHER COMPENSATION, BUT SHALL BE ALLOWED THE NECESSARY AND ACTUAL
22 EXPENSES INCURRED IN THE PERFORMANCE OF DUTIES UNDER THIS ARTICLE.
23 S 189-C. GENERAL POWERS AND DUTIES OF THE BOARD. 1. THE BOARD MAY
24 ADOPT RULES AND REGULATIONS RELATING TO THE ACTIVITIES OF THE BOARD.
25 2. THE BOARD, OR A MEMBER DESIGNATED BY THE BOARD, SHALL PREPARE,
26 DISTRIBUTE AND RECEIVE ALL APPLICATIONS FROM, OR ON BEHALF OF, APPLI-
27 CANTS FOR FUND BENEFITS. APPLICATIONS SHALL BE IN A FORM AND CONTAIN
28 SUCH INFORMATION, DATA AND EXHIBITS AS THE BOARD, IN CONSULTATION WITH
29 THE AUTHORITY AND THE CORPORATION, MAY PRESCRIBE.
30 3. THE BOARD MAY REQUEST FROM THE AUTHORITY AND THE CORPORATION AN
31 ANALYSIS OF ALL SUCH APPLICATIONS ALONG WITH ANY RECOMMENDATIONS. IN
32 ADDITION, THE BOARD MAY REQUEST, IN WHICH CASE AND THE AUTHORITY AND THE
33 CORPORATION SHALL SUPPLY, SUCH ADDITIONAL INFORMATION AS IS REASONABLY
34 NECESSARY FOR THE BOARD TO PERFORM ITS DUTIES.
35 4. THE BOARD SHALL ESTABLISH A PROCEDURE FOR THE REVIEW OF APPLICA-
36 TIONS FOR FUND BENEFITS THAT SHALL INCLUDE A REVIEW OF APPLICATIONS NO
37 LESS FREQUENTLY THAN TWICE EACH YEAR.
38 5. IN EVALUATING APPLICATIONS FOR FUND BENEFITS, THE BOARD SHALL USE
39 THE CRITERIA FOR ELIGIBILITY FOR EXPANSION, REPLACEMENT AND PRESERVATION
40 POWER, AND FOR REVITALIZATION OF INDUSTRY, PROVIDED IN SECTION ONE THOU-
41 SAND FIVE OF THE PUBLIC AUTHORITIES LAW. IN ADDITION, THE BOARD SHALL
42 CONSIDER THE EXTENT TO WHICH AN AWARD OF FUND BENEFITS IS CONSISTENT
43 WITH ANY REGIONAL ECONOMIC DEVELOPMENT COUNCIL STRATEGIES AND PRIORI-
44 TIES.
45 6. THE BOARD SHALL RECOMMEND TO THE CORPORATION THE ALLOCATION OF FUND
46 BENEFITS TO ELIGIBLE PROJECTS THAT THE BOARD BELIEVES BEST MEET THE
47 APPLICABLE CRITERIA.
48 THE BOARD MAY INCLUDE WITHIN ITS RECOMMENDATIONS SUCH TERMS AND CONDI-
49 TIONS AS IT DEEMS APPROPRIATE, INCLUDING, BUT NOT LIMITED TO, REASONABLE
50 PROVISION FOR THE ALLOCATION OF FUND BENEFITS OVER TIME AS THE APPLICANT
51 ACHIEVES MILESTONES TOWARDS PROJECT COMPLETION, THE PARTIAL OR COMPLETE
52 WITHDRAWAL OR RETURN OF FUND BENEFITS WHERE THE RECIPIENT HAS FAILED TO
53 ACHIEVE OR MAINTAIN MUTUALLY AGREED UPON COMMITMENTS, OR SUCH OTHER
54 TERMS AND CONDITIONS AS THE BOARD DEEMS ADVISABLE.
55 7. A RECOMMENDATION BY THE BOARD THAT AN APPLICANT RECEIVE AN ALLO-
56 CATION OF FUND BENEFITS SHALL BE A PREREQUISITE TO AN AWARD OF FUND
S. 5835 4
1 BENEFITS BY THE CORPORATION. THE CORPORATION SHALL AWARD FUND BENEFITS
2 TO AN APPLICANT UPON A FAVORABLE RECOMMENDATION OF THE BOARD, PROVIDED
3 HOWEVER THAT UPON A SHOWING OF GOOD CAUSE, THE CORPORATION SHALL HAVE
4 DISCRETION AS TO WHETHER TO ADOPT THE BOARD'S RECOMMENDATION, OR TO
5 AWARD BENEFITS IN A DIFFERENT AMOUNT AND ON DIFFERENT TERMS AND CONDI-
6 TIONS THAN THOSE CONTAINED IN THE RECOMMENDATION OF THE BOARD.
7 8. UPON MAKING AN ALLOCATION OF FUND BENEFITS, THE CORPORATION SHALL
8 INCLUDE WITHIN THE AGREEMENT PROVIDING FOR THE TERMS AND CONDITIONS
9 APPLICABLE TO SUCH ALLOCATION ALL TERMS AND CONDITIONS THE CORPORATION
10 BELIEVES ARE APPROPRIATE, TAKING INTO ACCOUNT THE RECOMMENDATIONS MADE
11 BY THE BOARD.
12 S 189-D. RULES AND REGULATIONS. THE CORPORATION IS HEREBY AUTHORIZED
13 TO PROMULGATE RULES AND REGULATIONS AS ARE NECESSARY TO FULFILL THE
14 PURPOSES OF THIS ARTICLE.
15 S 3. Section 100 of the economic development law is amended by adding
16 three new subdivisions 26-a, 26-b and 26-c to read as follows:
17 26-A. TO PROVIDE ALL NECESSARY STAFF SERVICES, ACCOUNTING, CLERICAL,
18 AND SECRETARIAL ASSISTANCE, OFFICE SPACE, AND EQUIPMENT REASONABLY
19 REQUESTED BY THE WESTERN NEW YORK POWER PROCEEDS ALLOCATION BOARD.
20 26-B. TO ESTABLISH APPLICATION, APPLICATION REVIEW AND ALLOCATION
21 PROCESSES FOR NET EARNINGS PROVIDED FOR UNDER ARTICLE SIX-A OF THIS
22 CHAPTER.
23 26-C. TO ESTABLISH A SEPARATE ACCOUNT TO BE KNOWN AS THE WESTERN NEW
24 YORK ECONOMIC DEVELOPMENT FUND. REASONABLE COSTS AND EXPENSES OF THE
25 CORPORATION RELATED TO MANAGEMENT AND ADMINISTRATION OF THE WESTERN NEW
26 YORK ECONOMIC DEVELOPMENT FUND MAY BE PAID OUT OF THE WESTERN NEW YORK
27 ECONOMIC DEVELOPMENT FUND.
28 S 4. Section 1005 of the public authorities law is amended by adding
29 four new subdivisions 19, 20, 21 and 22 to read as follows:
30 19. TO COOPERATE WITH THE WESTERN NEW YORK POWER PROCEEDS ALLOCATION
31 BOARD AND PROVIDE THE BOARD WITH SUCH INFORMATION AND ASSISTANCE AS THE
32 BOARD REASONABLY REQUESTS.
33 20. AS DEEMED FEASIBLE AND ADVISABLE BY THE TRUSTEES, TO ALLOCATE AND
34 DEPOSIT "NET EARNINGS" AS DEFINED IN SECTION ONE HUNDRED EIGHTY-NINE-A
35 OF THE ECONOMIC DEVELOPMENT LAW INTO THE WESTERN NEW YORK ECONOMIC
36 DEVELOPMENT FUND ACCOUNT TO BE ESTABLISHED BY THE NEW YORK STATE URBAN
37 DEVELOPMENT CORPORATION. SUCH EARNINGS SHALL BE DEPOSITED NO LESS
38 FREQUENTLY THAN QUARTERLY. THE FIRST PAYMENT INTO THE FUND SHALL BE MADE
39 NINETY DAYS AFTER THE EFFECTIVE DATE OF THIS SUBDIVISION, AND SHALL
40 INCLUDE ALL SUCH NET EARNINGS ACCRUED SINCE THE EFFECTIVE DATE OF CHAP-
41 TER FOUR HUNDRED THIRTY-SIX OF THE LAWS OF TWO THOUSAND TEN.
42 21. THE AUTHORITY MAY, IN ITS DISCRETION, CONSULT WITH THE WESTERN NEW
43 YORK POWER PROCEEDS ALLOCATION BOARD IN THE APPLICATION PROCESS RELATING
44 TO THE ALLOCATION OF EXPANSION POWER AND REPLACEMENT POWER.
45 22. THE AUTHORITY SHALL INCLUDE IN THE ANNUAL REPORT PREPARED PURSUANT
46 TO SUBDIVISION EIGHTEEN OF THIS SECTION, AN ACCOUNTING FOR THE SUBJECT
47 YEAR THAT PROVIDES (A) THE AMOUNT OF EXPANSION POWER AND REPLACEMENT
48 POWER SOLD INTO THE WHOLESALE MARKET BY THE AUTHORITY, AND (B) THE NET
49 EARNINGS, AS SUCH TERM IS DEFINED IN SECTION ONE HUNDRED EIGHTY-NINE-A
50 OF THE ECONOMIC DEVELOPMENT LAW, PAID INTO THE WESTERN NEW YORK ECONOMIC
51 DEVELOPMENT FUND.
52 S 5. Chapter 436 of the laws of 2010 amending the public authorities
53 law and the economic development law, relating to authorizing unallo-
54 cated expansion or replacement power to be allocated for western New
55 York economic development fund benefits is REPEALED.
56 S 6. This act shall take effect immediately.
