A00443 Summary:
| BILL NO | A00443 |
| SAME AS | SAME AS S02583 |
| SPONSOR | Carroll (MS) |
| COSPNSR | Rozic, Kim, Colton, Simon, Dinowitz, Dickens, Weprin, Rosenthal L, Cruz, Gonzalez-Rojas, Burdick, Mitaynes |
| MLTSPNSR | Cook, Hyndman |
| Amd §1005, Pub Auth L; add §28, amd §44, Pub Serv L; rpld §349-d, Gen Bus L | |
| Provides the New York power authority with the right of first offer and refusal for acquiring any renewable generation facility, renewable energy generation project and any power or energy created by a renewable generation facility or renewable energy generation project; bans non-state run energy services companies; allows the New York power authority to take over and operate as an energy services company. | |
A00443 Memo:
Go to topNEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
TITLE OF BILL: An act to amend the public authorities law and the public service law, in relation to providing the New York power authority with the right of first offer and refusal for certain renewable generation facilities and any power or energy created by such renewable generation facilities; bans energy services companies; and to repeal certain provisions of the general business law relating thereto PURPOSE OR GENERAL IDEA OF BILL:: To provide the right of first refusal on renewable energy projects to the New York Power Authority and to ban energy services companies. SUMMARY OF PROVISIONS:: Section 1 amends Section 1005 of the public authorities law by adding a new subdivision, 30, which grants the New York Public Power Authority first refusal rights to purchase any renewable generation facility, renewable energy generation project or any power or energy created by a renewable generation facility or renewable energy generation project. It also adds a new subdivision 31, which allows NYPA the right to sell energy services to end-use customers. Section 2 amends the public service law to by adding a new section 28 which defines grounds of first refusal as needed for the previous section. The New York Power Authority shall be allowed to match the purchase price of any renewable facility, project, and or and renewably generated power, and so assume the role of purchaser. Section 3 repeals provisions of the general business law pertaining to private energy service companies. Sections 4 and 5 further delineate NYPA's role and responsibilities in energy provision and Section 6 makes clear that nothing in the previous sections is intended to limit, impair, or affect the legal authority of the power authority of New York under any other provisions of tile 1 of article 5 of the public authorities law. Section 4 states the act shall take effect immediately. JUSTIFICATION:: With the passage of the CLCPA, New York State has a mandate to scale up our renewable energy infrastructure. But currently, New York only gets around 5% of its energy from wind and solar, and most renewable energy in the state is purchased from Energy Service Companies (ESCOs). ESCOs employ predatory practices and are nearly always more expensive than obtaining generation through a utility, overcharging between $30 and $40 million/month. This bill would ban ESCOs and instead allow the New York Power Authority to build, purchase, and sell affordable 100% renewable energy to all New Yorkers. NYPA is the Most financially viable entity for scaling up renewables at the scale needed as it has the lowest cost of capital, doesn't need to generate a profit for shareholders, and can make renewable energy aright for all New Yorkers regardless of income, race, or class. This bill unleashes NYPA, giving it the ability to own new renewable energy generation and have the right of first offer on all new generation projects. It commits us to the renewable energy transi- tion that New York State needs while maintaining democratic oversight of our energy system. PRIOR LEGISLATIVE HISTORY:: A.8937/S.7243 of 2019-20 FISCAL IMPLICATIONS:: To be determined. EFFECTIVE DATE:: Immediate.
A00443 Text:
Go to topSTATE OF NEW YORK ________________________________________________________________________ 443 2023-2024 Regular Sessions IN ASSEMBLY January 9, 2023 ___________ Introduced by M. of A. CARROLL, ROZIC, KIM, COLTON, SIMON, DINOWITZ, DICKENS, WEPRIN, L. ROSENTHAL, CRUZ, GONZALEZ-ROJAS, BURDICK, MITAYNES -- Multi-Sponsored by -- M. of A. COOK, HYNDMAN -- read once and referred to the Committee on Corporations, Authorities and Commissions AN ACT to amend the public authorities law and the public service law, in relation to providing the New York power authority with the right of first offer and refusal for certain renewable generation facilities and any power or energy created by such renewable generation facili- ties; bans energy services companies; and to repeal certain provisions of the general business law relating thereto The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 1005 of the public authorities law is amended by 2 adding two new subdivisions 30 and 31 to read as follows: 3 30. (a) To purchase, finance, plan, design, engineer, acquire, 4 construct, operate or manage any renewable generation facility, renewa- 5 ble energy generating project, battery energy storage systems, renewable 6 thermal energy technology such as heat pumps, solar thermal, or other 7 heating or cooling technologies using renewable sources of energy that 8 do not emit greenhouse gases, or any power or energy created by a renew- 9 able generation facility or renewable energy generation project under 10 the right of first offer and refusal established under section twenty- 11 eight of the public service law. 12 (b) For purposes of this subdivision, "renewable energy generating 13 project" shall mean a project that generates power and energy by means 14 of renewable energy resources, or that stores and supplies power and 15 energy generated by means of renewable energy resources, and includes 16 the construction, installation and/or operation of ancillary facilities 17 or equipment done in connection with any such renewable energy generat- 18 ing projects, provided, however, that such term shall not include the EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD00334-01-3A. 443 2 1 authority's Saint Lawrence hydroelectric project or Niagara hydroelec- 2 tric project. 3 31. To sell or provide energy services to end-use customers using the 4 transmission or distribution system of a utility. Any power or energy 5 sold under this subdivision shall be made entirely from renewable energy 6 resources. For the purposes of this subdivision, "renewable energy 7 resources" means solar power, wind power, hydroelectric, and any other 8 generation resource authorized by any renewable energy standard adopted 9 by the state for the purpose of implementing any state clean energy 10 standard. 11 § 2. The public service law is amended by adding a new section 28 to 12 read as follows: 13 § 28. New York power authority right of first offer and refusal. The 14 New York power authority, as established by title one of article five of 15 the public authorities law, shall be allowed to match the purchase price 16 of any renewable generation facility, renewable energy generation 17 project and any power or energy created by a renewable generation facil- 18 ity or renewable energy generation project. In the event that such 19 authority matches such purchase price, such authority shall assume the 20 role of purchaser of the renewable generation facility, renewable energy 21 generation project or any power or energy created by a renewable gener- 22 ation facility or renewable energy generation project. 23 § 3. Section 349-d of the general business law is REPEALED. 24 § 4. Paragraph (a) of subdivision 27 of section 1005 of the public 25 authorities law, as added by section 2 of part LL of chapter 58 of the 26 laws of 2019, is amended to read as follows: 27 (a) Notwithstanding any other provision of this title, as deemed 28 feasible and advisable by the trustees, the authority is authorized to 29 undertake the following actions when it deems it necessary or desirable 30 to address the energy-related needs of any (i) authority customer, (ii) 31 public entity, or (iii) CCA community: 32 (1) (A) supply power and energy procured from competitive market 33 sources to any (i) authority customer, (ii) public entity, or (iii) CCA 34 community through the supply of such products through an [energy35services company or other] entity that is authorized by the public 36 service commission to procure and sell energy products to participants 37 of a CCA program, provided, however, that the authority shall not supply 38 at any point more than a total of four hundred megawatts of power and 39 energy to authority customers and public entities pursuant to the 40 authority of this clause; 41 (B) supply renewable power, energy, or related credits or attributes 42 procured through a competitive process, from competitive market sources, 43 or through negotiation when a competitive procurement is not reasonably 44 feasible and such products can be procured on reasonably competitive 45 terms to (i) any authority customer, (ii) any public entity, or (iii) 46 any CCA community through the supply of such products through an [energy47services company or other] entity that is authorized by the public 48 service commission to procure and sell energy products to participants 49 of a CCA program; and 50 (2) (A) alone or jointly with one or more other entities, finance the 51 development of renewable energy generating projects that are located in 52 the state, including its territorial waters, and/or on property or in 53 waters under the jurisdiction or regulatory authority of the United 54 States, (B) purchase power, energy or related credits or attributes 55 produced from such renewable energy generating projects, and (C) allo- 56 cate and sell any such products to (i) any authority customer, (ii) anyA. 443 3 1 public entity, and (iii) any CCA community through [an] a not-for-profit 2 energy services company or other entity that is authorized by the public 3 service commission to procure and sell energy products to participants 4 of a CCA program, provided that the authority shall not, pursuant to the 5 authority in this subparagraph, finance more than six renewable energy 6 generation projects and have a per-project electric generating capacity 7 in excess of twenty-five megawatts. 8 § 5. Subdivision 5 of section 44 of the public service law, as added 9 by chapter 359 of the laws of 2009, is amended to read as follows: 10 5. At least once a year, every utility corporation, not-for-profit 11 energy services company or municipality shall provide its customers with 12 a notice that billing statements are available in large print format. 13 Upon written request by a customer, a utility corporation, not-for-pro- 14 fit energy services company or municipality shall provide the customer's 15 billing statements in the large print format commencing no later than 16 sixty days after the date upon which the request is received by the 17 utility corporation[, energy services company] or municipality. The 18 provisions of this subdivision shall apply only to printed statements. 19 For the purposes of this section, "large print" shall mean a printed 20 font size of sixteen or greater to illuminate billing information. For 21 the purposes of this section, "not-for-profit energy services company" 22 or "not-for-profit ESCO" shall mean [an] a not-for-profit entity eligi- 23 ble to sell energy services to end-use customers using the transmission 24 or distribution system of a utility corporation. 25 § 6. Nothing in this act is intended to limit, impair, or affect the 26 legal authority of the power authority of the state of New York under 27 any other provision of title 1 of article 5 of the public authorities 28 law. 29 § 7. This act shall take effect immediately; provided that the amend- 30 ments to subdivision 27 of section 1005 of the public authorities law 31 made by section four of this act shall not affect the repeal of such 32 subdivision and shall be deemed repealed therewith.