Relates to the approval of contracts awarded to owners of nuclear powered generating facilities; provides that certain exceptions to comptroller approval of contracts do not apply to a contract awarded by a public benefit corporation to the owner of a nuclear powered generating facility or facilities for the provision of zero-emissions attributes of generated electricity.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A695
SPONSOR: Dinowitz
 
TITLE OF BILL:
An act to amend the public authorities law, in relation to the approval
of contracts awarded to owners of nuclear powered generating facilities
 
PURPOSE OR GENERAL IDEA OF BILL:
To clarify that authorization for the comptroller to require prior-ap-
proval applies to certain contracts.
 
SUMMARY OF SPECIFIC PROVISIONS:
The bill amends section 2879-a of public authorities law to clarify that
certain exceptions to comptroller approval of contracts do not apply to
a contract awarded by a public benefit corporation to the owner of a
nuclear powered generating facility or facilities for the provision of
zero-emissions attributes of generated electricity.
 
JUSTIFICATION:
On August 1, 2016, the New York State Public Service Commission approved
the Clean Energy Standard (CES) (Case 15-E-0302), which established the
goal of obtaining 50% of the state's electricity from renewable sources
by 2030. A component of the CES is the twelve-year "Zero-Emissions Cred-
it" (ZEC) requirement. As a result of such requirement, in the first two
years, 2017-2019, all New York energy consumers will pay a rate increase
of $965 million to subsidize four upstate nuclear powered generating
facilities (Fitzpatrick, Ginna, and Nine Mile units 1 and 2), with rates
increasing as high as 10% for each two-year interval through the end of
program.
On April 1, 2017, the New York State Energy Research and Development
Authority (NYSERDA) entered into a 12 year contract with the owner of
the four nuclear powered generating facilities. Pursuant to the order,
NYSERDA has purchased "Zero-Emissions Credits" (ZECs) from the facili-
ties' owner. According to the order, a ZEC is a credit for the zero-em-
issions attributes of one-megawatt hour of electricity produced by such
facilities. Pursuant to the order, utilities are then required to
purchase a proportional share of the ZECs from NYSERDA, inevitably pass-
ing on the costs to their customers.
The Department of Public Service proposed the version of the ZEC
requirement that was adopted (with small modifications) by the Public
Service Commission on July 8, 2016. Approximately three weeks later, on
August 1, 2016, the CES order, which included the ZEC requirement, was
adopted. Such a massive program, that will impact every New York rate-
payer, merited greater transparency and review that the prior-approval
of the comptroller could have provided. This bill would ensure that the
comptroller would have the authority to require approval of any similar
contract in the future.
 
LEGISLATIVE HISTORY:
2022: A.1610 - Reported to Rules
2021: A.1610 - Corporations, Authorities and Commissions
2019-20: A.3303 - Corporations, Authorities and Commissions
2017-18: A.8188 - Reported to Ways and Means
 
FISCAL IMPLICATIONS:
Undetermined.
 
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
695
2023-2024 Regular Sessions
IN ASSEMBLY
January 11, 2023
___________
Introduced by M. of A. DINOWITZ, PAULIN, THIELE -- read once and
referred to the Committee on Corporations, Authorities and Commissions
AN ACT to amend the public authorities law, in relation to the approval
of contracts awarded to owners of nuclear powered generating facili-
ties
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 2879-a of the public authorities law is amended by
2 adding a new subdivision 3-a to read as follows:
3 3-a. Paragraphs (d), (e) and (f) of subdivision three of this section
4 shall not apply to any contract awarded to the owner of a nuclear
5 powered generating facility or facilities for the provision of such
6 facility or facilities' zero-emissions attributes of generated electric-
7 ity.
8 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD00718-01-3