STATE OF NEW YORK ________________________________________________________________________ 691 2017-2018 Regular Sessions IN SENATE January 4, 2017 ___________ Introduced by Sen. ORTT -- read twice and ordered printed, and when printed to be committed to the Committee on Energy and Telecommuni- cations AN ACT to amend the public authorities law, in relation to establishing the power authority of the state of New York shall make low cost hydropower available to certain hospitals The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The opening paragraph of subdivision 13 of section 1005 of 2 the public authorities law, as amended by chapter 645 of the laws of 3 2006, is amended to read as follows: 4 Notwithstanding any other provision of law to the contrary but subject 5 to the terms and conditions of federal energy regulatory commission 6 licenses, to allocate or reallocate directly or by sale for resale, two 7 hundred fifty megawatts of firm Niagara project hydroelectric power as 8 "expansion power" and four hundred forty-five megawatts of firm Niagara 9 project hydroelectric power as "replacement power" to businesses within 10 the state located within thirty miles of the Niagara project, and four 11 hundred ninety megawatts of firm and interruptible power from the Saint 12 Lawrence-FDR project as "preservation power" sold to businesses located 13 within the counties of Jefferson, Saint Lawrence and Franklin, provided 14 that the amount of expansion power allocated to businesses in Chautauqua 15 county on January first, nineteen hundred eighty-seven shall continue to 16 be allocated in such county and, provided further that up to seventy 17 megawatts of replacement power, up to thirty-eight and six-tenths mega- 18 watts of preservation power from the Saint Lawrence-FDR project which is 19 relinquished or withdrawn after the effective date of chapter three 20 hundred thirteen of the laws of two thousand five which amended this 21 subdivision and, for the period ending on December thirty-first, two 22 thousand six, up to twenty megawatts of other power from the Saint 23 Lawrence-FDR project which is unallocated as of the effective date of EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD04606-01-7

S. 691 2 1 chapter three hundred thirteen of the laws of two thousand five which 2 amended this subdivision, shall be allocated by the authority together 3 with such other funds of the authority as the trustees deem feasible and 4 advisable for energy cost savings benefits pursuant to the twelfth 5 undesignated paragraph of this section and, provided further that low 6 cost hydropower be made available to hospitals and municipal housing 7 authorities that are located in the counties of Niagara and Orleans. 8 Provided, however, that the amount of replacement, preservation power, 9 or the additional twenty megawatts of Saint Lawrence-FDR power for the 10 period ending December thirty-first, two thousand six made available for 11 such purpose, used for energy cost savings benefits that are relin- 12 quished by or withdrawn from a recipient thereof shall be offered by the 13 authority proportionately for a period of six months for reallocation to 14 applicants who qualify respectively for replacement or preservation 15 power allocations as provided in this subdivision. If such power is not 16 allocated within such period it shall be allocated for the purpose of 17 energy cost savings benefits pursuant to subdivision (h) of section one 18 hundred eighty-three of the economic development law. The authority 19 shall negotiate contracts on reasonable terms and conditions to renew or 20 extend every permanent contract allocation of expansion power in effect 21 on the effective date of this subdivision and, to the extent consistent 22 with such contracts, the authority shall negotiate contracts on reason- 23 able terms and conditions to extend or renew all other allocations or 24 allotments of such power in effect on such date. The authority shall 25 negotiate contracts on reasonable terms and conditions to renew or 26 extend for a period of at least five years every permanent contract 27 allocation of replacement power in effect on the effective date of chap- 28 ter three hundred thirteen of the laws of two thousand five which added 29 this sentence and that would expire by its terms on or before the end of 30 the initial federal energy regulatory commission license for the Niagara 31 project; provided that, in negotiating the terms and conditions of such 32 contracts, the authority may consider a business' compliance with all 33 current contractual obligations, including employment and power usage 34 commitments. Contracts entered into pursuant to this subdivision shall 35 contain reasonable provisions providing for the partial or complete 36 withdrawal of the power in the event the recipient fails to maintain 37 mutually agreed levels of employment, investment, and power utilization. 38 Expansion or replacement power relinquished by businesses or withdrawn 39 by the authority shall be allocated directly or by sale for resale by 40 the authority to businesses within the state located within thirty miles 41 of the Niagara project provided, that the amount of power allocated to 42 businesses in Chautauqua county on January first, nineteen hundred 43 eighty-seven shall be allocated in such county. Preservation power that 44 is relinquished by businesses or withdrawn by the authority shall be 45 allocated directly or by sale for resale by the authority within the 46 counties of Jefferson, Saint Lawrence and Franklin. Allocations made 47 pursuant to this paragraph shall be made in accordance with criteria 48 established by the trustees. Such criteria shall address the expansion 49 of industry and employment pursuant to paragraph (a) of this subdivision 50 and the revitalization of existing industry pursuant to paragraph (b) of 51 this subdivision. 52 § 2. This act shall take effect immediately.