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A06498 Summary:

BILL NOA06498
 
SAME ASNo Same As
 
SPONSORBrown K
 
COSPNSRMcDonough
 
MLTSPNSR
 
Amd §§1020-b, 1020-f, 1020-cc & 1020-mm, Pub Auth L; amd §24, Exec L; amd §112, St Fin L
 
Relates to contracts entered into by the Long Island Power Authority for emergency goods and services.
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A06498 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          6498
 
                               2025-2026 Regular Sessions
 
                   IN ASSEMBLY
 
                                      March 5, 2025
                                       ___________
 
        Introduced by M. of A. K. BROWN -- read once and referred to the Commit-
          tee on Corporations, Authorities and Commissions
 
        AN  ACT  to  amend the public authorities law, the executive law and the
          state finance law, in relation to contracts entered into by  the  Long
          Island Power Authority for emergency goods and services

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Section 1020-b of the public authorities law, as  added  by
     2  chapter  517  of the laws of 1986, is amended by adding two new subdivi-
     3  sions 25 and 26 to read as follows:
     4    25.  "Short-term  public  power  purchase  agreement"   shall   denote
     5  contracts  for the purchase, sale, or delivery of power or energy, fuel,
     6  costs and services ancillary  thereto,  or  financial  products  related
     7  thereto, with a term of less than five years.
     8    26. "Contracts for emergency goods or services" shall denote contracts
     9  entered  into  for procurement of goods, services, or both, made to meet
    10  emergencies arising from unforeseen causes or to effect repairs to crit-
    11  ical infrastructure that are necessary to avoid delay in the delivery of
    12  critical services that could compromise the public welfare.
    13    § 2. Subdivision (h) of section 1020-f of the public authorities  law,
    14  as  added  by  chapter  517  of  the laws of 1986, is amended to read as
    15  follows:
    16    (h) To make and execute agreements, contracts  and  other  instruments
    17  necessary  or  convenient in the exercise of the powers and functions of
    18  the authority under this title, including  contracts  with  any  person,
    19  firm, corporation, municipality, state agency or other entity in accord-
    20  ance  with  the  provisions  of section one hundred three of the general
    21  municipal law, and all state agencies and all municipalities are  hereby
    22  authorized to enter into and do all things necessary to perform any such
    23  agreement,  contract or other instrument with the authority, except that
    24  (i) the authority's contracts, other than as specified in paragraph (ii)
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10230-01-5

        A. 6498                             2
 
     1  of this subdivision, shall only be subject to bidding  requirements  and
     2  pre-audit  requirements  whenever such contract exceeds an amount estab-
     3  lished by the comptroller in consultation with the authority,  and  (ii)
     4  the authority's contracts entered into for categories described in para-
     5  graphs  (c),  (d)  and  (e) of subdivision three of section twenty-eight
     6  hundred seventy-nine-a of this chapter, shall  not  be  subject  to  the
     7  bidding requirements or pre-audit requirements of the comptroller pursu-
     8  ant  to  section  one  thousand  twenty-mm  of  this title, but shall be
     9  entered into pursuant to guidelines and thresholds  established  by  the
    10  comptroller in consultation with the authority. Any such contracts shall
    11  be filed with the comptroller within sixty days after their execution;
    12    §  3.  Section  1020-cc  of  the public authorities law, as amended by
    13  section 11 of part A of chapter 173 of the laws of 2013, is  amended  to
    14  read as follows:
    15    §  1020-cc.  Authority  subject to certain provisions contained in the
    16  state finance law, the public service law, the social services  law  and
    17  the  general  municipal law. 1. (a) All contracts of the authority shall
    18  be subject to the provisions  of  the  state  finance  law  relating  to
    19  contracts  made  by  the state. The authority shall also establish rules
    20  and regulations with respect to providing to its residential gas,  elec-
    21  tric  and  steam utility customers those rights and protections provided
    22  in article two and sections one hundred seventeen and one hundred  eigh-
    23  teen  of  the public service law and section one hundred thirty-one-s of
    24  the social services law. The authority shall conform to any safety stan-
    25  dards regarding manual lockable disconnect switches for  solar  electric
    26  generating equipment established by the public service commission pursu-
    27  ant  to  subparagraph  (ii)  of  paragraph  (a)  of subdivision five and
    28  subparagraph (ii) of paragraph (a)  of  subdivision  five-a  of  section
    29  sixty-six-j of the public service law. The authority shall let contracts
    30  for construction or purchase of supplies, materials, or equipment pursu-
    31  ant  to  section one hundred three and paragraph (e) of subdivision four
    32  of section one hundred twenty-w of the general municipal law.
    33    (b) Notwithstanding paragraph (a)  of  this  subdivision,  before  any
    34  contract made for or by the authority shall be executed or become effec-
    35  tive,  whenever such contract exceeds an amount established by the comp-
    36  troller in consultation with the authority, it shall first  be  approved
    37  by  the  office  of the comptroller and filed in such office pursuant to
    38  section one hundred twelve of the state finance law, except for  catego-
    39  ries  described  in  paragraphs (c), (d) and (e) of subdivision three of
    40  section twenty-eight hundred seventy-nine-a of this chapter which  shall
    41  not  be subject to the bidding requirements or pre-audit requirements of
    42  the comptroller pursuant to  section  one  thousand  twenty-mm  of  this
    43  title,  but  shall be entered into pursuant to guidelines and thresholds
    44  established by the comptroller in consultation with the  authority,  and
    45  any collective bargaining agreements.
    46    2.  The  authority  [and  service provider] shall provide to the state
    47  comptroller on March thirty-first and September thirtieth of each year a
    48  report documenting each contract in excess of two hundred fifty thousand
    49  dollars per year entered into with a third party and related to  manage-
    50  ment  and  operation  services  associated with the authority's electric
    51  transmission and distribution system, including the name  of  the  third
    52  party,  the  contract  term and a description of services or goods to be
    53  procured, and post such report on each of their websites. All  contracts
    54  necessary  for  conducting  utility operations entered into between [the
    55  service provider] ServCo and  third  parties  are  not  subject  to  the
    56  requirements of subdivision one of this section.

        A. 6498                             3
 
     1    §  4.  Section  1020-mm  of  the public authorities law, as amended by
     2  chapter 37 of the laws of 2023, is amended to read as follows:
     3    §  1020-mm.  Prioritization  of emergency services.  1.  Extraordinary
     4  circumstances, including excessive costs, shortages of supply,  and  the
     5  inflated  price  of  fuel,  may threaten the capacity to provide utility
     6  service essential to the continued safety, health, prosperity, and well-
     7  being of the people of Long Island, by reason of the interconnection and
     8  interdependence of electric facilities, the reliability of such  service
     9  throughout  the  area  require  emergency action by the authority. It is
    10  therefore declared that:
    11    (a) If, during a widespread prolonged outage  that  affects  at  least
    12  twenty thousand customers in the service territory of the authority, and
    13  the  [service  provider] authority is not able to restore electric power
    14  services within twenty-four hours to  any  affected  police  department,
    15  fire  department,  ambulance  service  or  advanced  life  support first
    16  response service facility that is prewired with an appropriate  transfer
    17  switch  for  using  an  alternate  generated power source, [such service
    18  provider] the authority shall notify the village, town or city in  which
    19  such facility is located.
    20    [2.]  (b)  Towns,  cities, and villages shall provide to counties, and
    21  counties shall to the extent practicable, provide the [service provider]
    22  authority and the division of homeland security and  emergency  services
    23  with  a  list  of  such  police departments, fire departments, ambulance
    24  services and advanced life support first response services located with-
    25  in such municipality's territorial boundaries within  one  year  of  the
    26  effective date of this section, and periodically thereafter as necessary
    27  to update such list.
    28    [3.]  (c) For the purposes of this section, "alternate generated power
    29  source" shall mean electric generating equipment that is of the capacity
    30  that is capable of providing adequate electricity to  operate  all  life
    31  safety  systems  and  the  basic operations of a police department, fire
    32  department, ambulance service or advanced life  support  first  response
    33  service.
    34    2.  To the extent necessary, and pursuant to guidelines and thresholds
    35  established by the comptroller in consultation with the  authority,  the
    36  authority  shall be entitled to enter into contracts for emergency goods
    37  or services or short-term  public  power  purchase  agreements,  without
    38  being  subject  to the bidding requirements or pre-audit requirements of
    39  the comptroller pursuant to subdivision three  of  section  twenty-eight
    40  hundred  seventy-nine-a  of  this chapter in accordance with subdivision
    41  (h) of section one thousand twenty-f of this title. This  shall  include
    42  contracts  entered  into  for the procurement of goods, services or both
    43  goods and services made to  meet  emergencies  arising  from  unforeseen
    44  causes  or  to effect repairs to critical infrastructure that are neces-
    45  sary to avoid a delay in the delivery of critical  services  that  could
    46  compromise  the  public  welfare.  Contracts  entered into for emergency
    47  goods or services or short-term public power purchase  agreements  shall
    48  be  pursuant  to  guidelines  established  by  the comptroller and shall
    49  require notice to the office of the state comptroller within forty-eight
    50  hours.
    51    § 5. Paragraph a of subdivision 9 of section 24 of the executive  law,
    52  as  added  by  chapter  37  of  the  laws of 2023, is amended to read as
    53  follows:
    54    a. Whenever a local state of emergency is declared  pursuant  to  this
    55  section  and  upon receipt of notification by an electric corporation or
    56  the [service provider] Long Island power authority, pursuant to  section

        A. 6498                             4
 
     1  seventy-three-a  of the public service law or section one thousand twen-
     2  ty-mm of the public authorities law, the chief executive  shall  coordi-
     3  nate  with  affected  police  departments,  fire  departments, ambulance
     4  services and advanced life support first response services prewired with
     5  an  appropriate  transfer  switch for using an alternate generated power
     6  source for the emergency deployment of alternate generated power  sourc-
     7  es.
     8    §  6.  Paragraph  (a)  of  subdivision  2  of section 112 of the state
     9  finance law is amended by adding a new subparagraph  (iii)  to  read  as
    10  follows:
    11    (iii)  Before the Long Island power authority enters into any contract
    12  which exceeds an amount established by the comptroller  in  consultation
    13  with  such  authority,  it  shall first be approved by the office of the
    14  state comptroller and  filed  in  such  office,  except  that  contracts
    15  entered into for emergency goods and services or short-term public power
    16  purchase  contracts  must  comply  with guidelines and thresholds estab-
    17  lished by the comptroller in consultation with  the  Long  Island  power
    18  authority.   The Long Island power authority shall not be subject to the
    19  fifty thousand dollar limitation set forth in clause one of subparagraph
    20  (i) of this paragraph.
    21    § 7. Severability. The provisions of this act shall be severable,  and
    22  if  any  clause,  sentence,  paragraph, subdivision, or part of this act
    23  shall be adjudged by any court of competent jurisdiction to be  invalid,
    24  such  judgment  shall  not  affect,  impair, or invalidate the remainder
    25  thereof, but shall be confined in its operation to the clause, sentence,
    26  paragraph, subdivision, or part thereof directly involved in the contro-
    27  versy in which such judgment shall have been rendered.
    28    § 8. This act shall take effect January 1, 2027.
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