A10047 Summary:

BILL NO    A10047 


SPONSOR    Rules (Hevesi)



Directs the New York state power authority to issue requests for proposals on
certain gas turbine generators installed in and around the New York
metropolitan area.
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A10047 Actions:

BILL NO    A10047 

06/10/2014 referred to corporations, authorities and commissions
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A10047 Votes:

There are no votes for this bill in this legislative session.
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A10047 Memo:


TITLE OF BILL:  An act directing the power authority of the state of
New York to release requests for proposals on certain natural gas
powered generating facilities in and around New York city

PURPOSE:  To raise revenue for the Power Authority of the State of New
York through the sale of numerous "peaker" generators in and around
New York City and to provide resources for alternative energy
generation projects within the City.


Section one of the bill requires the New York Power Authority ("NYPA")
to issue a request for proposals ("REP") for the purchase of 10
specified gas turbine electric generating facilities within 90 days of
the effective date. NYPA is required to issue requests to determine
the likely value of the sale of the generators and to submit a report
to the Governor. the Temporary President of the Senate, and the
Speaker of the Assembly regarding the range of bids received. NYPA
will be authorized to sell one or more of the 10 specified gas turbine
electric generating facilities if NYPA and its Trustees find that it
the sale or sales are in the best interest of NYPA and the citizens of
New York. The revenue collected from any sale or sales shall be used
in New York City to encourage alternative energy generation. Such
alternative energy generation projects shall be funded following a

Section two of the bill provides that this act shall take effect

JUSTIFICATION:  New York City faces considerable obstacles in moving
toward a greater reliance on alternative energy sources. It is the
interest of the citizens of New York City and of the entire state to
support new alternative energy generating projects through the
transfer of publicly owned and operated traditional power entities
within the five boroughs to private entities committed to service and
technology upgrades.

Revenues generated from the sale or transfer of the specified gas
turbine electric generating facilities are to be used to encourage,
the goals of PIaNYC for a cleaner and more reliable energy future.

An ideal candidate for such an endeavor is the New York Power
Authority ("NYPA"). NYPA should issue a Request for Proposals ("RFP")
to sell its small, natural gas-powered facilities in an around New
York City, thereby providing independent power producers with the
opportunity to help trim the budget shortfall while, as the same time,
applying their expertise to the operation of those facilities.  If an
RFP for those generating facilities was issued, it is possible for
NYPA to bring in significant revenue to apply to the city's and
state's future energy requirements. Such transactions should also
benefit the city and state for years to come through the increased tax
revenues that should be realized on an ongoing basis.

In the Summer of 2001, NYPA began operating ten natural gas-powered
generating facilities at six sites in New York city, thereby adding

approximately 450 megawatts of energy to NYPA's portfolio. These
facilities were intended to be used as "peaker" plants, needed only in
times of extremely high demand or in case of emergency. The existence
and use of these units by a public entity has been controversial since
the onset, and moving these traditional petrochemical powered units to
the private sector would allow NYPA the opportunity to help move the
city into a brighter and cleaner future through the support of
alternative energy projects such as solar arrays, wind and tidal
generation in partnership with independent private generators.

It would not be the first time that NYPA sold some of its property to
the private sector, and it is likely that interested investors would
be attracted to NYPA's small generation facilities as well. While it
is impossible to predict potential offers, it should be noted that, in
2008, TransCanada corporation purchased the Ravenswood Generating
Facility in Queens from National Grid for $2.8 billion---a price that
exceeded expectations and demonstrates the level of attention that the
private sector takes in worthwhile assets.

PRIOR LEGISLATIVE HISTORY:  2011-12: S.5406-A - Referred to
Corporations, Authorities and Commissions 2010: S.7208 - Referred to
Corporations, Authorities and Commissions

FISCAL IMPLICATIONS:  the REP will provide an accurate value, but
recent estimates put the value at a minimum of $200 million apiece.

EFFECTIVE DATE:  This act shall take effect immediately.
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A10047 Text:

                           S T A T E   O F   N E W   Y O R K


                                 I N  A S S E M B L Y

                                     June 10, 2014

       Introduced  by  COMMITTEE ON RULES -- (at request of M. of A. Hevesi) --
         read once and referred to the Committee on  Corporations,  Authorities
         and Commissions

       AN ACT directing the power authority of the state of New York to release
         requests  for  proposals  on  certain  natural  gas powered generating
         facilities in and around New York city


    1    Section 1. (a) The power authority of the state of New York ("authori-
    2  ty")  shall  within  90  days of the effective date of this act, issue a
    3  request for the proposals to purchase from the authority one or more  of
    4  the  ten  gas  turbine  electric  generating facilities with a nameplate
    5  capacity of less than 80 megawatts each, owned by the  authority  as  of
    6  the effective date of this act and located in and around the city of New
    7  York.  Such  request  for proposals to sell such generators shall be put
    8  out for bid for a maximum of 90 days and  shall  include  the  following
    9  sites and generating facilities:
   10    (1)  Two units at Harlem river yard plant, located in the Harlem River
   11  Yards, at E. 132nd street, Bronx, New York 10454;
   12    (2) Two units at Vernon Boulevard,  located  at  41-98,  42-02,  42-16
   13  Vernon boulevard, Long Island City, Queens, New York 11101;
   14    (3)  Two  units  at  the Hell Gate plant, located at Locust Avenue, E.
   15  132nd street to E. 134th street, Bronx, New York 10454;
   16    (4) Two units at the Windsor  Terrace  power  plant,  located  at  3rd
   17  avenue and 23rd street, Brooklyn, New York 11232;
   18    (5)  One unit at Pouch terminal; located at 1 Edgewater street, Staten
   19  Island, New York 10305; and
   20    (6) One unit at North First avenue and River street, located at  47-79
   21  River street, Brooklyn, New York 11211.
   22    (b)  The authority shall issue such requests to determine, among other
   23  things the likely value to New York state for the sale of  such  genera-
   24  tors. The authority shall, within 30 days of the end of the solicitation
   25  period,  report  on  the  range  of  solicited bids to the governor, the
   26  temporary president of the senate  and  the  speaker  of  the  assembly,

        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
       A. 10047                            2

    1  subject  to  all appropriate and applicable confidentiality requirements
    2  with respect to individual bids and information contained therein.
    3    (c)  The  authority, as its trustees deem feasible and in the interest
    4  of the authority and the citizens of the state of  New  York,  shall  be
    5  authorized  to  permit  the  sale of one or more of the turbine electric
    6  facilities listed in subdivision (a) of this section. Revenues collected
    7  from such sale or sales shall be placed in a dedicated  account  in  the
    8  custody  of  the  authority  and  used  to  reduce electricity costs for
    9  private primary and secondary schools in the  state  of  New  York.  The
   10  authority  shall,  as  deemed  feasible  and  advisable by the trustees,
   11  create and implement programs to promote energy efficiency, the  instal-
   12  lation of renewable or clean energy technologies, and to aggregate ener-
   13  gy  purchases  for  such  private  primary  and secondary schools. As it
   14  relates to renewable or clean energy projects  only  those  technologies
   15  eligible  for  net  metering  under  section  66-j or 66-l of the public
   16  service law shall qualify.
   17    S 2. In order to measure the effectiveness  of  the  programs  created
   18  pursuant  to  this  act,  the  authority shall issue a report on July 1,
   19  2015, and every other year from that date  forward.  Such  report  shall
   20  contain information on each program created and shall measure energy and
   21  monetary  savings  achieved by each private primary or secondary school,
   22  as well as full accounting of  the  funds  remaining  in  the  dedicated
   23  account.  A copy of the report shall be provided to the temporary presi-
   24  dent of the senate, the speaker of the assembly, the chair of the senate
   25  energy and telecommunications committee, the chair of the assembly ener-
   26  gy committee and also published on the authority's website.
   27    S 3. This act shall take effect immediately.
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