Bill Text: NY S08055 | 2015-2016 | 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: (Engrossed - Dead) 2016-06-16 - referred to corporations, authorities and commissions [S08055 Detail]

Download: New_York-2015-S08055-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          8055
                    IN SENATE
                                      June 8, 2016
                                       ___________
        Introduced  by  Sen.  YOUNG  -- read twice and ordered printed, and when
          printed to be committed to the Committee on Rules
        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.
    23    §  77-b. The effect of power importation on electrical markets. 1. The
    24  commission is authorized and directed to determine, through a comprehen-
    25  sive monitoring and reporting methodology, the undue competitive  advan-
    26  tages in the state's electricity markets that out-of-state power genera-
    27  tors  have over in-state power generators due to this state's imposition
    28  of charges, fees, assessments, environmental standards and/or  allowance
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD15793-01-6

        S. 8055                             2
     1  auctions  on in-state generated power that are not imposed at comparable
     2  levels or strictures on power imported into the state. Such  methodology
     3  for  monitoring  and reporting shall be established pursuant to a stake-
     4  holder  process through a proceeding to be established by the commission
     5  within one month of the effective date of this section.  The  commission
     6  shall  consult  with  the New York state energy research and development
     7  authority and the federally designated bulk system operator serving  the
     8  state's  electric  system  on how best to create the needed methodology.
     9  Within nine months of the commission establishing the methodology pursu-
    10  ant to this section, the department shall issue a report to the governor
    11  and the chairs of the energy committees of the assembly and senate  that
    12  describes, in detail, the negative consequences of imported power exempt
    13  from  such charges, fees, assessments and/or allowance auctions, as well
    14  as recommendations on how these consequences could  be  minimized.  Such
    15  report  shall  reflect  stakeholder  review  and comment on the issue of
    16  imported power's impact on local employment and  revenues,  and  adverse
    17  environmental impacts both within and outside the state.
    18    2.  For  the  purposes  of this section and section seventy-seven-a of
    19  this article, the following terms shall have the following meanings:
    20    (a) "Competitive advantage"  shall  mean  any  advantageous  position,
    21  financial  or otherwise, that exists for an out-of-state power generator
    22  over an in-state power generator in relation to  requirements  regarding
    23  state imposed charges, fees, assessments, environmental standards and/or
    24  allowance  auctions.  A  competitive  advantage may include, among other
    25  things, avoided costs such as within New York state  shared  infrastruc-
    26  ture improvements, taxes, penalties, costs of compliance to clean energy
    27  or environmental standards, and administrative or reporting costs.
    28    (b)  "In-state power generator" shall mean a power generation facility
    29  physically located in this state.
    30    (c) "Out-of-state power  generator"  shall  mean  a  power  generation
    31  facility physically located in a state or province outside of this state
    32  that is selling power in New York state.
    33    § 2. This act shall take effect immediately.
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