Add Art 6 SS6-102 - 6-108, Energy L; amd S1005, ren SS1020-gg, 1020-hh & 1020-ii to be SS1020-hh, 1020-ii &
1020-jj, add S1020-gg, Pub Auth L
Relates to state energy planning; relates to the completion of an annual energy plan by the power authority of the state of New York and the Long Island power authority.
STATE OF NEW YORK
________________________________________________________________________
6801
2009-2010 Regular Sessions
IN ASSEMBLY
March 12, 2009
___________
Introduced by M. of A. BRENNAN -- Multi-Sponsored by -- M. of A. PHEFFER
-- read once and referred to the Committee on Energy
AN ACT to amend the energy law, in relation to state energy planning;
and to amend the public authorities law, in relation to completion of
an annual energy plan by the power authority of the state of New York
and the Long Island power authority
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The energy law is amended by adding a new article 6 to
2 read as follows:
3 ARTICLE 6
4 ENERGY PLANNING
5 Section 6-102. State energy planning board.
6 6-104. State energy plan.
7 6-106. Conduct of the state energy planning proceeding.
8 6-108. Reliability study.
9 § 6-102. State energy planning board. 1. There shall be established a
10 state energy planning board, hereinafter referred to as the "board",
11 which shall consist of the chair of the public service commission, the
12 commissioner of the department of environmental conservation, the
13 commissioner of the department of economic development, the commissioner
14 of the department of transportation, the director of the state emergency
15 management office and the chair of the New York state energy research
16 and development authority. Any decision or action by the board shall be
17 by majority vote. The chair of the New York state energy research and
18 development authority shall serve as chair of the board.
19 2. Staff services shall be performed by personnel of the department of
20 public service, the department of environmental conservation, the
21 department of transportation, the department of economic development,
22 the state emergency management office and the New York state energy
23 research and development authority, as directed by the board. Assistance
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD09793-01-9
A. 6801 2
1 shall also be made available, as requested by the board, from other
2 agencies, departments and public authorities of the state. The board
3 may provide for its own representation in all actions or proceedings in
4 which it is a party.
5 3. The board shall have the powers: (a) To adopt a state energy plan
6 in accordance with the provisions of this article;
7 (b) To adopt rules and regulations as necessary or appropriate to
8 implement this article;
9 (c) To issue subpoenas and subpoenas duces tecum; and
10 (d) To authorize any person to conduct hearings which the board is
11 authorized to conduct, to take testimony with respect to the subject or
12 matter under investigation, and to report the testimony to the board. In
13 the conduct of such hearings, any person so authorized by the board
14 shall have all the powers of the board.
15 4. The board shall consider and present policies and programs that are
16 designed to improve the reliability of the state's energy systems, insu-
17 late consumers from volatility in market prices, reduce the overall cost
18 of energy in the state and minimize public health and environmental
19 impacts. Each energy plan shall also identify policies and programs that
20 maximize cost-effective energy efficiency and conservation activities to
21 meet projected demand growth.
22 (a) The board shall identify the most appropriate state agency or
23 authority with the responsibility for implementing or overseeing such
24 prioritized policies and programs.
25 (b) Each agency or authority charged with implementing a specific
26 policy or program in the energy plan shall report to the board annually
27 regarding the original goal of such policy or program, steps that have
28 been taken to implement such policy or program, progress in attaining
29 goals, adjustments to the program or goals and reasons why adjustments
30 are needed, and anticipated date of completion.
31 (c) The board shall use such progress reports in the completion of
32 each subsequent energy plan and in each of the required biennial reports
33 as stated in section 6-106 of this article.
34 § 6-104. State energy plan. 1. The board shall adopt a state energy
35 plan in accordance with the provisions of this article.
36 2. The state energy plan shall include: (a) forecasts for periods of
37 five, ten and twenty years of (i) demand for electricity, natural gas,
38 coal, petroleum products, including heating and transportation fuels,
39 and alternate fuels, including ethanol and other biofuels, for each of
40 the service areas of the state's major electric and gas utilities and
41 the state as a whole, taking into account energy conservation, load
42 management and other demand-reducing measures which can be achieved in a
43 cost-effective manner, including the basis for such projection, includ-
44 ing an examination of possible alternate levels of demand and discussion
45 of the forecasting methodologies and input variables used in making the
46 forecasts;
47 (ii) energy supply requirements needed to satisfy demand for electric-
48 ity, natural gas, coal, petroleum products, including heating and trans-
49 portation fuels, and alternate fuels, including ethanol and other biofu-
50 els, for each of the service areas of the state's major electric and gas
51 utilities and for the state as a whole, including with respect to elec-
52 tricity, the amount of capacity needed to provide adequate reserve
53 margins and capacity needed to ensure competitive markets in the various
54 regions of the state;
55 (iii) an assessment of the ability of the existing energy supply
56 sources and the existing transmission or fuel transportation systems, to
A. 6801 3
1 satisfy, together with those sources or systems reasonably certain to be
2 available, such energy supply requirements, indicating planned addi-
3 tions, retirements, deratings, substantial planned outages, and any
4 other expected changes in levels of generating and production capacity;
5 (iv) additional electric capacity and/or transmission or fuel trans-
6 portation systems needed to meet such energy supply requirements that
7 will not be met by existing sources of supply and those reasonably
8 certain to be available, where such analysis should identify specific
9 system constraints and specific alternatives available, both supply-side
10 and demand-side alternatives, to redress such constraint;
11 (v) energy prices, including a forecast of the impact on electric
12 wholesale prices and fuel prices resultant from the addition of new
13 electric generating facilities;
14 (vi) a description of the comparative advantages and disadvantages of
15 reasonably available locations for energy facilities, including a state-
16 ment of the reasons why such locations are suitable for electric gener-
17 ating facilities, including but not limited to existing local zoning
18 status, proximity to electric transmission and fuel transportation
19 systems, and proximity to electric load centers; and
20 (vii) an assessment of the economic, environmental, public safety and
21 public risk implications of all nuclear reactors generating electricity
22 in the state, including issues of nuclear waste generation; on-site
23 waste treatment, storage, transportation and long-term options; adequacy
24 and status of emergency and evacuation planning; projections of plant
25 life; and economic implications of plant closure, decommissioning, reli-
26 censing, and life extension;
27 (b) Identification and analysis of the costs, risks, benefits, uncer-
28 tainties and market potential of energy supply source alternatives,
29 including demand-reducing measures, renewable energy resources of elec-
30 tric generation, distributed generation technologies, cogeneration tech-
31 nologies, biofuels and other methods and technologies reasonably avail-
32 able for satisfying energy supply requirements which are not reasonably
33 certain to be met by the energy supply sources identified in subpara-
34 graph (iii) of paragraph (a) of this subdivision, provided that such
35 analysis shall include the factors identified in paragraph (d) of this
36 subdivision;
37 (c) Identification and analysis of emerging trends related to energy
38 supply, price and demand, including trends related to the transportation
39 sector;
40 (d) An evaluation of current energy policies and programs, and long-
41 range energy planning objectives and strategies, and an evaluation of
42 the success of such programs, policies and strategies to achieve the
43 least cost integration of energy supply sources and demand-reducing
44 measures for satisfying energy supply requirements, giving due regard to
45 such factors as required capital investments, cost, ratepayer impacts,
46 security and diversity of fuel supplies and generating modes, protection
47 of public health and safety, adverse and beneficial environmental
48 impacts, conservation of energy and energy resources, the ability of the
49 state to compete economically, and any other policy objectives deemed
50 appropriate;
51 (e) In order to assist the board in such evaluation, the power author-
52 ity of the state of New York and the Long Island power authority shall
53 individually submit to the planning board (i) a strategic plan specify-
54 ing the mission and goals of the authority, the policies and programs
55 utilized to fulfill such mission and goals, and an explanation of how
56 such policies and programs relate to the state energy plan, (ii) an
A. 6801 4
1 annual five-year operating plan, and (iii) a ten-year projected capital
2 budget for their respective operations. Such plans shall include major
3 new capital and programmatic initiatives, as well as descriptions and
4 achievements of existing programs, including program objectives and the
5 numbers of clients and/or customers served for each service or program;
6 (f) An analysis of security issues, considering both natural and human
7 threats to the state's energy systems;
8 (g) An environmental justice analysis;
9 (h) Recommendations, as appropriate and desirable, for administrative
10 and legislative actions to implement such policies, objectives and stra-
11 tegies;
12 (i) Analysis of the probable impact of implementation of the plan upon
13 economic development, health, safety and welfare, environmental quality,
14 and energy costs for consumers, specifically low-income consumers; and
15 (j) Such additional information as the board deems appropriate.
16 3. To the extent practicable, and where not otherwise specified, the
17 elements of the state energy plan as enumerated in subdivision two of
18 this section shall be provided on a statewide basis as well as for two
19 identifiable regions of the state: constituting the downstate region and
20 the upstate region. For purposes of this section, "downstate region"
21 shall include the counties of Dutchess, Orange, Rockland, Putnam, West-
22 chester, Nassau, Suffolk and the five counties of New York city; and
23 "upstate region" shall include all other counties in the state.
24 4. (a) The state energy plan shall provide guidance for energy-relat-
25 ed decisions to be made by the public and private sectors within the
26 state.
27 (b) Any energy-related action or decision of a state agency, board,
28 commission or authority shall be reasonably consistent with the fore-
29 casts and the policies and long-range energy planning objectives and
30 strategies contained in the plan, including its most recent update;
31 provided, however, that any such action or decision which is not reason-
32 ably consistent with the plan shall be deemed in compliance with this
33 section, provided that such action or decision includes a finding that
34 the relevant provisions of the plan are no longer reasonable or probable
35 based on a material and substantial change in fact or circumstance, and
36 a statement explaining the basis for this finding.
37 (c) Nothing in this section shall limit the authority of any state
38 agency, board, commission or authority to deny an application to
39 construct, operate or modify an energy facility on environmental or
40 public health and safety grounds, or that alternate means of energy
41 procurement or alternate location for an energy facility can be secured.
42 (d) A state agency, board, commission or authority may take official
43 notice of the most recent final state energy plan adopted by the board
44 prior to any final energy-related decision by such agency, board,
45 commission or authority.
46 § 6-106. Conduct of the state energy planning proceeding. 1. Every
47 four years, the board shall adopt a state energy plan, which addresses
48 each item identified in subdivision two of section 6-104 of this article
49 provided, however, the board may adopt such a plan more frequently for
50 good cause shown. The board shall prepare biennial reports, every second
51 year following the issuance of the final state energy plan, including a
52 discussion and evaluation of the ability of the state and private
53 markets to implement the policies, programs, and other recommendations
54 as found in the state energy plan, and recommendations for new or
55 amended policies as needed to continue successful movement towards
56 implementation and realization of such policies and programs.
A. 6801 5
1 2. The board shall conduct a state energy planning proceeding,
2 consistent with the need to develop the plan in a timely manner, which
3 shall provide for the following at a minimum:
4 (a) The filing of information by major energy suppliers as specified
5 in subdivision three of this section;
6 (b) The preparation and issuance of a draft plan, subsequent to the
7 filing of information by major energy suppliers, which shall address
8 each item identified in subdivision two of section 6-104 of this arti-
9 cle;
10 (c) Public comment hearings, in at least three geographic locations in
11 the state, and an opportunity to submit written comments, subsequent to
12 the issuance of a draft plan, to obtain views and comments of interested
13 persons on any aspect of, or issue addressed in, such draft plan;
14 (d) Evidentiary hearings, at the request of any interested person,
15 subsequent to the issuance of a draft plan, on the issues identified in
16 subdivision two of section 6-104 of this article; and
17 (e) Submission of a notice for any hearing or opportunity for comment
18 provided for pursuant to this subdivision for publication within the
19 state register.
20 3. Information filed by major energy suppliers shall include the
21 following:
22 (a) All providers of electric transmission and distribution services
23 to customers, including the power authority of the state of New York and
24 the Long Island power authority, shall individually prepare and submit a
25 comprehensive long-range plan for future operations, which shall
26 include:
27 (i) a forecast of electricity demands over a period of five, ten and
28 twenty years, including annual in-state electric energy sales and summer
29 and winter peak loads by utility service area, and total annual in-state
30 electric energy sales and coincident peak load, specifically identifying
31 the extent to which energy conservation, load management and other
32 demand-reducing measures, and electric energy generated by cogeneration,
33 small hydro and alternate energy production facilities, including renew-
34 able energy technologies and fuel cells, consumed on site, have been
35 incorporated within such forecast;
36 (ii) a forecast of electricity supply requirements over a period of
37 five, ten and twenty years, by utility service area, specifically iden-
38 tifying the amount of reserve margins required for reliable electric
39 service, the amounts of transmission and distribution losses assumed,
40 and the amount of out-of-state sales commitments;
41 (iii) an assessment of the ability of existing electricity supply
42 sources, and those reasonably certain to be available, to satisfy elec-
43 tricity supply requirements, including electric generating facilities
44 which can be retained in service beyond their original design life
45 through routine maintenance and repairs;
46 (iv) an inventory of: (1) all existing electric generating and trans-
47 mission facilities including the power authority of the state of New
48 York and the Long Island power authority, (2) electric generating and
49 transmission facilities under construction including the power authority
50 of the state of New York and the Long Island power authority, including
51 the dates for completion and operation, (3) the anticipated retirement
52 dates for any electric generating facilities currently operated includ-
53 ing the power authority of the state of New York and the Long Island
54 power authority, (4) land owned including the power authority of the
55 state of New York and the Long Island power authority and held for
56 future use as sites for major electric generating facilities, and (5)
A. 6801 6
1 electric generating facilities operated, or planned to be operated, by
2 others, to the extent information concerning the same is known;
3 (v) recommended supply additions and demand reducing measures for
4 satisfying the electricity supply requirements, not reasonably certain
5 to be met by electricity supply sources identified in subparagraph (iii)
6 of this paragraph, including the life extension of existing electric
7 generating facilities, and reasons therefor;
8 (vi) a statement of research and development plans, including objec-
9 tives and programs in the areas of energy conservation, load management,
10 electric generation and transmission, new energy technologies and
11 pollution abatement and control, which are not funded through regulatory
12 required programs, recent results of such programs undertaken or funded
13 to date, and an assessment of the potential impacts of such results;
14 (vii) a projection of estimated electricity prices to consumers over
15 the forecast period, and a sensitivity analysis of that forecast relat-
16 ing to a number of factors including fuel prices and the levels of
17 available capacity and demand in the regions of the state;
18 (viii) a description of the load forecasting methodology and the
19 assumptions and data used in the preparation of the forecasts, specif-
20 ically including projections of demographic and economic activity and
21 such other factors, statewide and by service area, which may influence
22 electricity demand, and the bases for such projections;
23 (ix) proposed policies, objectives and strategies for meeting the
24 state's future electricity needs; and
25 (x) such additional information as the board may, by regulation,
26 require to carry out the purposes of this article.
27 (b) The members of the New York gas group shall individually prepare
28 and submit a comprehensive long-range plan for future operations, which
29 shall include:
30 (i) a forecast over a period of five, ten and twenty years, by utility
31 service area, of estimated annual in-state gas sales, winter season
32 sales and peak day sales by appropriate end-use classifications, specif-
33 ically identifying the extent to which energy conservation measures and
34 the sale of gas owned by persons other than the members of the New York
35 gas group directly to end-users have been incorporated within such fore-
36 cast;
37 (ii) a forecast of gas supply requirements over a period of five, ten
38 and twenty years, by utility service area, specifically identifying the
39 amounts of gas needed to meet severe weather conditions, lost and unac-
40 counted for gas, out-of-state sales commitments and internal use;
41 (iii) an assessment of the ability of existing gas supply sources, and
42 those reasonably certain to be available, to satisfy gas supply require-
43 ments;
44 (iv) an inventory of: (1) all existing supply sources, storage facil-
45 ities, and transmission facilities which are used in providing service
46 within the state, (2) the transmission and storage facilities under
47 construction which would be used in providing service within the state,
48 their projected costs and capacities, including peaking capacity, (3)
49 transmission facility additions proposed to be constructed by members of
50 the gas group, (4) transmission facilities operated, or planned to be
51 operated, by others, to the extent information concerning the same is
52 known;
53 (v) recommended supply additions and demand-reducing measures for
54 satisfying the gas supply requirements, not reasonably certain to be met
55 by gas supply sources identified in subparagraph (iii) of this paragraph
56 and the reasons therefor;
A. 6801 7
1 (vi) a projection of estimated gas prices to consumers over the fore-
2 cast period, and a sensitivity analysis of that forecast relating to a
3 number of factors including the levels of available capacity and demand
4 in the regions of the state;
5 (vii) a description of the load forecasting methodology and the
6 assumptions and data used in the preparation of the forecasts, specif-
7 ically including projections of demographic and economic activity and
8 such other factors, statewide and by service area, which may influence
9 demand for natural gas, and the bases for such projections;
10 (viii) a statement of research and development plans, including objec-
11 tives and programs in the areas of energy conservation and new energy
12 technologies, recent results of such programs undertaken or funded to
13 date, and an assessment of the potential impacts of such results;
14 (ix) proposed policies, objectives and strategies for meeting the
15 state's future gas needs; and
16 (x) such additional information as the board may, by regulation,
17 require to carry out the purposes of this article.
18 (c) Such information from major petroleum suppliers and major coal
19 suppliers as the board may, by regulation, require to carry out the
20 purposes of this article.
21 (d) Such information from owners and operators of electric generating
22 power plants as the board may, by regulation, require to carry out the
23 purposes of this article.
24 4. Any information filed under this section that is claimed to be
25 confidential shall be treated in accordance with regulations adopted by
26 the board pertaining to the determination of confidential status and the
27 retention of confidential records.
28 5. Copies of the draft plan, and all non-confidential information and
29 comments filed pursuant to this section shall be made available to the
30 public for inspection.
31 6. The board may amend the state energy plan, or aspects thereof, upon
32 its own initiative or upon the written application of any interested
33 person. In connection with any such amendment, the board may require the
34 filing of such information as may be required, consistent with regu-
35 lation. Prior to adopting any proposed amendment to an element of the
36 plan identified in subdivision two of section 6-104 of this article, the
37 board shall hold evidentiary hearings, upon the written application of
38 an interested party. Prior to adopting a proposed amendment to any
39 element of the plan, the board shall prepare and publish in the state
40 register notice of any draft amendment and reasons therefor and shall
41 solicit public comments thereon. The board shall adopt an amendment to
42 the state energy plan, or aspects thereof, upon a finding by the board
43 that there has been a material and substantial change in fact or circum-
44 stance since the most recent plan was adopted. A decision of the board
45 that no amendment is necessary, together with the reasons supporting
46 such determination, shall be final.
47 7. Any person who participated in the state energy planning proceeding
48 or any person who sought an amendment of the state energy plan pursuant
49 to subdivision six of this section, may obtain, pursuant to article
50 seventy-eight of the civil practice law and rules, judicial review of
51 the board's decision adopting a plan, or any amendment thereto, or of
52 the board's decision not to amend such plan pursuant to subdivision six
53 of this section. Any such special proceeding shall be brought in the
54 appellate division of the supreme court of the state of New York for the
55 third judicial department. Such proceeding shall be initiated by the
56 filing of a petition in such court within thirty days after the issuance
A. 6801 8
1 of a decision by the board. The proceeding shall have a lawful prefer-
2 ence over any other matter, shall be heard on an expedited basis and
3 shall be completed in all respects, including any subsequent appeal,
4 within one hundred eighty days of the filing of the petition. Where more
5 than one such petition is filed, the court may provide for consolidation
6 of the proceedings. Notwithstanding the provisions of article seven of
7 the public service law, the procedure set forth herein shall constitute
8 the exclusive means for seeking judicial review of any element of the
9 plan.
10 8. Proceedings conducted pursuant to this section shall not be consid-
11 ered part of an adjudicatory proceeding as defined in subdivision three
12 of section one hundred two of the state administrative procedure act, or
13 part of a rule making proceeding held under subdivision one of section
14 two hundred two of the state administrative procedure act.
15 § 6-108. Reliability study. 1. Every four years, the board shall
16 undertake a study of the overall reliability of the state's electric
17 transmission and distribution system. The board may contract with an
18 independent and competitively selected contractor to undertake such
19 study. The board shall prepare a report on such study's findings and
20 legislative recommendations. The board shall transmit such report along
21 with the reliability study to the governor, the speaker of the assembly,
22 the temporary president of the senate, the chair of the assembly energy
23 committee, and the chair of the senate energy and telecommunications
24 committee.
25 2. The study shall include, at minimum, an assessment of each of the
26 following:
27 (a) the current and projected reliability of the electric power system
28 over the term of the planning period, with specific focus on trans-
29 mission systems and distribution systems within the state. The assess-
30 ment shall examine: (i) investment in infrastructure, including capital
31 improvements, expansions, and maintenance; and (ii) workforce utiliza-
32 tion.
33 (b) the potential impact of the following on distribution system reli-
34 ability and on each factor enumerated in paragraph (a) of this subdivi-
35 sion: (i) distributed electric generation, especially generation using
36 renewable or innovative energy resources; (ii) energy conservation and
37 efficiency; (iii) load control and peak shaving measures; (iv) corporate
38 reorganization of electric utilities; (v) performance ratemaking,
39 multi-year rate agreements, and other departures from traditional regu-
40 latory mechanisms; and (vi) large scale industrial development.
41 (c) the potential impact of the following on transmission system reli-
42 ability: (i) each factor enumerated in paragraph (b) of this subdivi-
43 sion; (ii) changes in protocols for electricity dispatched through the
44 New York power pool or its successor or successors; (iii) accommodation
45 of proposed new electric generation facilities or repowering or life
46 extension of existing facilities; and (iv) the market-driven nature of
47 decisions to build, size, and locate such facilities.
48 3. The board shall consult with entities that have resources and
49 expertise to assist in such investigation.
50 (a) The Long Island power authority, the power authority of the state
51 of New York, the department of public service, and the members of the
52 New York power pool or its successor or successors shall cooperate with
53 the board and its contractor.
54 (b) The Long Island power authority and the power authority of the
55 state of New York are authorized, as deemed feasible and advisable by
A. 6801 9
1 their respective boards, to make a voluntary contribution toward the
2 investigation.
3 § 2. Section 1005 of the public authorities law is amended by adding a
4 new subdivision 16 to read as follows:
5 16. To complete an annual energy plan in accordance with the
6 provisions of article six of the energy law. In addition to any require-
7 ments of article six of the energy law, the authority shall provide
8 copies of its annual energy plan to the governor, the temporary presi-
9 dent of the senate, the speaker of the assembly, the chair of the assem-
10 bly committee on energy and the chair of the senate committee on energy
11 and telecommunications. Further, the authority shall cooperate and
12 participate in the state energy planning procedures as enumerated in
13 article six of the energy law.
14 § 3. Sections 1020-gg, 1020-hh and 1020-ii of the public authorities
15 law, as renumbered by chapter 234 of the laws of 2004, are renumbered
16 sections 1020-hh, 1020-ii and 1020-jj and a new section 1020-gg is added
17 to read as follows:
18 § 1020-gg. Energy plan. The authority shall complete an annual energy
19 plan in accordance with the provisions of article six of the energy law.
20 In addition to any requirements of article six of the energy law, the
21 authority shall provide copies of its annual energy plan to the gover-
22 nor, the temporary president of the senate, the speaker of the assembly,
23 the chair of the assembly committee on energy and the chair of the
24 senate committee on energy and telecommunications. Further, the authori-
25 ty shall cooperate and participate in the state energy planning proce-
26 dures as enumerated in article six of the energy law.
27 § 4. This act shall take effect immediately.
