N.Y. Pub. Auth. Law § 1005

§ 1005. Powers and duties of authority. Forthwith upon the appointment\nand organization of the trustees and subject to the conditions and\nlimitations in this title contained, the authority, in cooperation with\nthe proper Canadian authorities and those of the United States as\nhereinafter directed, shall proceed with the improvement and development\nof the Niagara river and the international rapids section of the Saint\nLawrence river (which is defined as that part of the said river from\nOgdensburg to the point where it leaves the territory of this state) for\nthe aid and benefit of commerce and navigation and for the development\nof the hydroelectric power inherent therein in accordance with the\nprovisions of this title.\n The authority is authorized to procure through a competitive\nsolicitation process power and energy from the competitive market and to\nconstruct, improve and/or rehabilitate throughout its area of service\n(a) such hydroelectric or energy storage projects, as it deems necessary\nor desirable to contribute to the adequacy, economy and reliability of\nthe supply of electric power and energy or to conserve fuel and (b) such\nbase-load nuclear generating facilities or other facilities utilizing\nnew energy technologies as in its judgment are necessary (i) to supply\nsufficient supplemental energy to make possible optimum use of the\ngenerating capacity of the authority's Saint Lawrence and Niagara\nhydroelectric projects, (ii) to supply low cost power and energy to high\nload factor manufacturers which will build new facilities in the\nauthority's area of service or expand existing facilities provided such\npower and energy is made available to them, and (iii) to supply the\nfuture needs of the authority's existing municipal electric and rural\nelectric cooperative customers.\n The authority is further authorized to construct and/or acquire and\ncomplete such base load generating, transmission and related facilities\nas it deems necessary or desirable to assist in maintaining an adequate\nand dependable supply of electricity by supplying power and energy for\nthe metropolitan transportation authority, its subsidiary corporations,\nthe New York city transit authority, the port authority of New York and\nNew Jersey, the city of New York, the state of New York, the United\nStates, other public corporations and electric corporations within the\nmetropolitan area of the city of New York within the state of New York;\nprovided, however, that (i) the acquisition of completed or partially\ncompleted facilities shall be after public hearing and shall be limited\nto facilities located in New York city or Westchester county and the\nenergy and power generated by such facilities shall be used, to the\nextent feasible, for the benefit of electric consumers in that area,\n(ii) not more than one such generating facility shall be acquired in\neach of New York city and Westchester county, (iii) the price to be paid\npursuant to any agreement entered into with respect to the purchase,\nappropriation or condemnation of any such completed or partially\ncompleted facility, as the case may be, shall be subject to the approval\nof the state comptroller and (iv) transmission facilities shall not be\nso acquired pursuant to this paragraph unless such acquisition is\nnecessary to assure delivery of power and energy produced by any\nacquired generating facility. The authority is further authorized, to\nthe extent it deems it necessary or desirable, to provide power and\nenergy, as it may determine it to be available, for the use by the\nNiagara frontier transportation authority or its subsidiary corporation.\nThe authority is authorized to make energy efficiency services, clean\nenergy technologies and, in the event that supplies of power and energy\nare determined to be available from the competitive market for this\npurpose, power and energy, available to public and nonpublic elementary\nand secondary schools throughout the state.\n A high load factor manufacturer is one which normally utilizes a\nminimum electric demand of five thousand kilowatts and which will\nnormally utilize energy at the rate of approximately five hundred forty\nkilowatt hours per month for each kilowatt of demand and of which the\ncost of electricity normally represents at least seven and one-half\npercent of its total product value.\n The authority shall publish notice of any proposed allocation of firm\npower and associated energy except such allocations as are subject to\nthe provisions of section one thousand nine of this chapter, at least\nthirty days prior to the delivery of any energy pursuant thereto, which\nnotice shall, in the case of industrial allocations, document actions by\nthe authority pertaining thereto including solicitation for competing\nproposals. In addition, such notice shall be transmitted to the\ntemporary president of the senate, the speaker of the assembly, and the\nrespective fiscal committees of the legislature.\n Notwithstanding any inconsistent provision of law, the authority is\nauthorized to enter into contracts prior to July first, nineteen hundred\neighty-five to allocate a total of not more than thirty-six megawatts of\npower and associated energy, available for allocation as a result of\nvoluntary relinquishment by high load factor manufacturers, of such\npower and associated energy from base load nuclear generating facilities\nof the authority, to furnish electricity to no more than three customers\nwhich: (a) are located in the southeastern portion of the state; (b)\nwill build new facilities and/or expand existing facilities; (c) will\nexpand employment and investment in the state; and (d) will normally\nutilize a minimum peak electrical demand of one thousand kilowatts.\n The authority is further authorized to construct such generating,\ntransmission and related facilities within the service area of the Long\nIsland power authority, as the authority, in consultation with and upon\nsuch terms and conditions as the Long Island power authority, deems\nnecessary or desirable.\n Periodically, but no less often than annually, the authority is\nauthorized and directed to identify the net revenues produced by the\nsale of expansion power and further to identify an amount of the net\nrevenues from the sale of expansion power which amount shall be used\nsolely for industrial incentive awards. Notwithstanding other lawful\npurposes for which such revenues may be used, it shall be the preferred\npurpose of the authority to make available all such net revenues for\nindustrial incentive awards. Provided, however, that industrial\nincentive awards shall be made only in conformance with an economic\ndevelopment plan covering all such net revenues which is submitted no\nless often than annually by the authority and approved pursuant to\nsection one hundred eighty-eight of the commerce law. For purposes of\nthis paragraph, the term net revenues shall mean any excess of revenues\nproperly allocated to the sales of expansion power over costs and\nexpenses properly allocated to such sales.\n Notwithstanding any inconsistent provision of this title, the\nauthority shall make available all economic development power for\nallocation to or for businesses whose allocation of such power is\nrecommended by the New York state economic development power allocation\nboard pursuant to section one hundred eighty-seven of the commerce law.\nIf the authority declines to make power available to or for a business\nwhose allocation has been so recommended, the authority shall decline\nwithin the period specified by the board in its recommendation and shall\nissue in writing a statement of reasons for such denial.\n a. Economic development power shall mean any power generated at the\nFitzpatrick nuclear project that is voluntarily relinquished by\nbusinesses.\n b. The authority shall report quarterly to the New York state economic\ndevelopment power allocation board on the anticipated availability of\neconomic development power for the subsequent twelve-month period.\n c. When the authority determines that economic development power is\navailable, the authority shall notify the New York state economic\ndevelopment power allocation board.\n d. The authority shall provide for the sale of power from the\nFitzpatrick nuclear project to its industrial, business, and economic\ndevelopment power customers at a uniform non-discriminatory rate.\n The authority is further authorized, as deemed feasible and advisable\nby the trustees, to acquire, maintain, manage, operate, improve and\nreconstruct as a project or projects of the authority one or both of the\nsteam generation facilities owned by the state known as the Sheridan\navenue steam generating plant on Sheridan avenue in the city of Albany\nand used to supply steam to state facilities, together with any\nproperties, buildings and equipment at the sites thereof or ancillary\nthereto, for the generation and sale of thermal energy and the\ncogeneration and sale of electricity for use by facilities of the state\nwithin the county of Albany. All the authority's costs, including its\nacquisition, capital, operating and maintenance costs, shall be\nrecovered fully from the customers receiving service from such project\nor projects. Thermal energy and electricity not required by the state\nmay be sold by the authority to others. The authority is not authorized\nto use refuse or refuse-derived fuel in operating the project or\nprojects. Any agreement for such acquisition shall insure that the\nauthority is not liable or otherwise responsible for circumstances\narising from the prior operation of such facilities. The acquisition and\npurchase of such land, buildings and equipment by the authority, and any\nactions taken to effect such acquisition and purchase, are hereby exempt\nfrom the provisions of article eight of the environmental conservation\nlaw. The application of such exemption shall be strictly limited to the\nacquisition and purchase of such land, buildings and equipment by the\nauthority and such agreements with the state. Nothing herein shall\nexempt the authority from otherwise applicable laws respecting the\nexpansion, conversion, operation and maintenance of such land, buildings\nand equipment.\n The authority is authorized and directed:\n 1. To cooperate with the appropriate agencies and officials of the\nUnited States government to the end that any hydroelectric project on\nthe Niagara or Saint Lawrence rivers undertaken under this title shall\nbe consistent with and in aid of any plans of the United States for the\nimprovement of commerce and navigation along such rivers and shall be so\nplanned and constructed as to be adaptable to the plans of the United\nStates therefor, so that the necessary channels, locks, canals, and\nother navigational facilities may be constructed and installed by the\nUnited States, in, through, and as part of such project.\n 2. To negotiate with the appropriate Canadian authorities and agencies\nrespecting the improvement and development of the Niagara river, and\ninternational rapids section of the Saint Lawrence river for the aid and\nbenefit of commerce and navigation and the development of hydro-electric\npower therefrom, and to plan and agree with them upon cooperative action\nto that end including any shifting of international boundary lines\nbetween Canada and the United States and upon the use, control and\ndisposition of the facilties to be created and the hydro-electric power\nto be developed by any project constructed in such rivers. Such\nnegotiations and agreements shall be conducted and concluded with due\nregard to the position of the United States in respect to international\nagreements, and any such agreements as may be reached with Canadian\nauthorities or agencies may be submitted by the authority to congress\nfor its approval, if it be advised that such approval is necessary or\ndesirable.\n 3. To apply to the appropriate agencies and officials of the United\nStates government and/or of Canada or its provinces, including the\nfederal power commission, the atomic energy commission, and the\ninternational joint commission, for such licenses, permits or approval\nof its plans or projects as it may deem necessary or advisable, and in\nits discretion, and upon such terms and conditions as it may deem\nappropriate, to accept such licenses, permits or approvals as may be\ntendered to it by such agencies or officials and such federal or other\npublic or governmental assistance as is now or may hereafter become\navailable to it; and to enter into contracts with such agencies or\nofficials or utility companies relating to the construction or operation\nof any project authorized by this title. Neither the authority nor any\ntrustee, officer or agent thereof shall have any power to waive or\nsurrender for any purpose whatsoever any right of the state of New York,\nwhether sovereign or proprietary in character, in and to the Niagara and\nSaint Lawrence rivers, their waters, power, channels, beds, or uses, or\nthe right of the state to assert such rights at any future time;\nprovided, however, that nothing herein contained shall be construed as\nlimiting the power of the authority to accept licenses issued by the\nfederal power commission pursuant to the provisions of the federal power\nact, as amended, or by the atomic energy commission pursuant to the\nprovisions of the atomic energy act of 1954, as amended, and the terms\nand conditions therein imposed pursuant to law. If for any reason the\nauthority shall fail to secure any such license, permit or approval as\nit may deem necessary or advisable, or shall decide not to make\napplication therefor, it is authorized to institute suit, or to apply to\ncongress for legislation, or take such other action in the premises as\nit may deem necessary or advisable, in the furtherance of the project\nand for the protection of its rights and those of the state.\n 4. To study the desirability and means of attracting industry to the\nstate of New York.\n 5. To develop, maintain, manage and operate those parts of the Niagara\nand Saint Lawrence hydroelectric projects owned or controlled by it in\nsuch manner as to give effect to the policy hereby declared (and all\nplans and acts, and all contracts for the use, sale, transmission and\ndistribution of the power generated by such projects, shall be made in\nthe light of, consistent with and subject to this policy), namely, that\nsuch projects shall be in all respects for the aid, improvement, and\nbenefit of commerce and navigation in, through, along and past the\nNiagara river, the Saint Lawrence river and the international rapids\nsection thereof, and that in the development of hydro-electric power\ntherefrom such projects shall be considered primarily as for the benefit\nof the people of the state as a whole. In furtherance of this policy and\nto secure a wider distribution of such power and use of the greatest\nvalue to the general public of the state, the authority shall in\naddition to other methods which it may find advantageous make provision\nso that municipalities and other political sub-divisions of the state\nnow or hereafter authorized by law to engage in the distribution of\nelectric power may secure a reasonable share of the power generated by\nsuch projects, and shall sell the same or cause the same to be sold to\nsuch municipalities and political subdivisions at prices representing\ncost of generation, plus capital and operating charges, plus a fair cost\nof transmission, all as determined by the trustees, and subject to\nconditions which shall assure the resale of such power at the lowest\npossible price, provided, however, that in disposing of hydro-electric\npower pursuant to and in furtherance of the aforementioned policy and\npurposes, appropriate provision may also be made to allocate a\nreasonable share of project power to agencies created or designated by\nother states and authorized to resell the power to users under the same\nterms and conditions as power is disposed of in New York state. To that\nend, the authority may provide in any contract or contracts which it may\nmake for the sale, transmission and distribution of the power that the\npurchaser, transmitter or distributor shall construct, maintain and\noperate, on such terms as the authority may deem proper, such connecting\nlines as may be necessary for transmission of the power from main\ntransmission lines to such municipalities or political subdivisions.\n Contracts for the sale, transmission and distribution of power\ngenerated by such projects shall provide for the effectuation of the\nforegoing policy and shall provide:\n a. Payment of all operating and maintenance expenses of the project.\n b. Interest on and amortization and reserve charges sufficient within\nfifty years of the date of issuance to retire the bonds of the power\nauthority issued for the project.\n c. Continuous control and operation of the project by the authority.\n d. The effectuation of the policy declared in this sub-paragraph.\n e. Full and complete disclosure to the authority of all factors of\ncost in the transmission and distribution of power, so that rates to\nconsumers may be fixed initially in the contract and may be adjusted\nfrom time to time on the basis of true cost data, provided that in\nfixing such cost of transmission and distribution no account shall be\ngiven to any franchise value, going value or good-will based upon the\nexistence of the contract and the availability of the power for sale by\nthe transmitting or distributing company or any company associated\ntherewith.\n f. Periodic revisions of the service and rates to consumers on the\nbasis of accurate cost data obtained by such accounting methods and\nsystems as shall be approved by the trustees and in furtherance and\neffectuation of the policy declared in this sub-paragraph.\n g. That the rates, services and practices of the purchasing,\ntransmitting and/or distributing public agencies or companies in respect\nto the power generated by such projects shall be governed by the\nprovisions and principles established in the contract, and not by\nregulations of the public service commission or by general principles of\npublic service law regulating rates, services and practices and that in\nthe event any such public agencies or companies which purchase power\nfrom the authority shall sell any such power for resale, such sale for\nresale shall be made at rates no higher than those at which the power\nwas purchased from the authority.\n h. The rate structures agreed upon in such contract may provide\ndifferent rates for different localities, classes of consumers, and\namounts of current consumed, and for changes in the rates resulting from\nvariation in operating costs and fixed charges.\n i. For the cancellation and termination of any such contract upon\nviolation of the terms thereof by the purchasing, transmitting or\ndistributing public agency or company, or any subsidiary or associate\nthereof.\n j. For such security for performance as the authority may deem\npracticable and advisable, including provisions assuring the continuance\nof service by the purchasing, transmitting and/or distributing public\nagencies or companies and/or the use of their facilities for such\nservice and/or the continuance of an outlet and adequate market for the\npower generated by such projects.\n k. Such other terms not inconsistent with the provisions and policy of\nthis title as the authority may deem advisable.\n 6. To develop, maintain, manage and operate its projects other than\nthe Niagara and Saint Lawrence hydroelectric projects so as (i) to\nprovide an adequate supply of energy for optimum utilization of its\nhydroelectric projects, (ii) to attract and expand high load factor\nindustry, (iii) to provide for the additional needs of its municipal\nelectric and rural electric cooperative customers, (iv) to provide a\nsupply of power and energy for use in the recharge New York power\nprogram as recharge New York market power, and (v) to assist in\nmaintaining an adequate, dependable electric power supply for the state.\n Contracts for the sale, transmission and distribution of power and\nenergy generated by such projects shall provide for the effectuation of\nthe policy set forth in this title relating to such projects and shall\nprovide:\n a. Payment of all operating and maintenance expenses of the projects.\n b. Interest on and amortization and reserve charges sufficient within\nfifty years of the date of issuance to retire the bonds of the authority\nissued for the projects.\n c. For the cancellation and termination of any such contract upon\nviolation of the terms thereof by the purchasing, transmitting or\ndistributing public agency or company, or any subsidiary thereof.\n d. That the rates, services and practices of the purchasing,\ntransmitting and/or distributing public agencies and rural electric\ncooperatives in respect to the power and energy from such projects shall\nbe governed by the provisions and principles established in the\ncontract, and not by regulations of the public service commission or by\ngeneral principles of public service law regulating rates, services and\npractices and that in the event any such public agencies or cooperatives\nwhich purchase power from the authority shall sell any such power for\nresale, such sale for resale shall be made at rates no higher than those\nat which the power was purchased from the authority.\n e. In the case of a contract with an electric corporation entered into\non or after May first, nineteen hundred seventy-four (i) for assurances\nby the electric corporation of prompt and timely payment of all bills\nrendered by the authority and that failure to make such prompt and\ntimely payment shall be grounds for immediate termination of the\ncontract, and (ii) that in the event the contract is so terminated, the\nelectric company will wheel to such purchasers as the authority may\ndirect the power and energy that would have been sold to the electric\ncompany had the contract not been terminated.\n f. Such other terms not inconsistent with the provisions and policy of\nthis title as the authority may deem advisable.\n 7. To proceed with the physical construction or completion of any\nproject authorized by this title, including the erection of the\nnecessary dams, power houses and other facilities, instrumentalities and\nthings necessary or convenient to that end, and including also the\nerection of such transmission lines as may be necessary to conduct\nelectricity to users located at or near the site; and including also the\nacquisition, by contract only with the owners thereof, of transmission\nlines or the use of such transmission lines, available or which may be\nmade available, to conduct electricity to such point or points at which\nthe electricity is sold by the authority to any person, corporation or\nassociation, public or private, engaged in the business of distribution\nand sale of electricity to ultimate consumers or if the authority is\nunable to so acquire by contract the ownership or use of such\ntransmission lines, including also the erection by the authority of\ntransmission lines necessary for such purposes; and thereafter to\nmaintain and operate the project in accordance with the provisions and\npolicy of this title. The authority is specifically authorized to\nundertake the construction of any project in one or more steps as it may\nfind economically desirable or advantageous, and as it may agree with\nthe appropriate Canadian and/or United States authorities. Whenever in\nthis title reference is made to "project", it shall be understood to\nrefer to such part of any project authorized by this title as may from\ntime to time be in existence or immediately projected.\n 8. To cooperate with and, when the trustees deem it feasible and\nadvisable, to enter into contractual arrangements with utility\ncompanies;\n a. With respect to construction and operation of pumped storage\nfacilities by the authority and supply of all or part of the necessary\npumping energy by the utilities and their purchase of all or part of the\noutput.\n b. With respect to construction, completion, acquisition, ownership\nand/or operation of baseload generating facilities, fuel, docks,\nsidings, loading or unloading equipment, storage facilities and other\nsubsidiary facilities and disposition of the output of such generating\nfacilities.\n c. With respect to construction, acquisition, ownership, operation\nand/or use of transmission facilities.\n 9. To cooperate with and, when the trustees deem it feasible and\nadvisable, to enter into contractual arrangements with municipal\ncorporations with respect to construction, improvement, rehabilitation,\nownership and/or operation of hydroelectric generating facilities and\nsubsidiary facilities and disposition of the output of such generating\nfacilities.\n 10. To cooperate with and, when the trustees deem it feasible and\nadvisable, to enter into contractual arrangements with New York state\nenergy research and development authority in connection with the\nplanning, siting, development, construction, operation and maintenance\nof generating facilities of the authority utilizing new energy\ntechnologies to the extent such action is consistent with the purposes\nand powers granted by law to New York state energy research and\ndevelopment authority.\n 10-a. a. To cooperate with and, when the trustees deem it feasible and\nadvisable, enter into contracts with an owner or operator of a "class A"\nmultiple dwelling, as defined in subdivision eight of section four of\nthe multiple dwelling law, to administer and finance programs for the\ndevelopment, design, installation and provision of financial assistance\nwith respect to the replacement of refrigerators with more energy\nefficient refrigerators; provided that no costs associated with such\nfinancial assistance shall be charged to the authority's customers.\nFinancial assistance shall be repaid to the authority, over a period not\nto exceed ten years, based on projected savings in energy costs and\nrelated costs which accrue to the owner as a result of installing such\nmeasures and consistent with paragraph b of this subdivision.\n b. If the owner of such multiple dwelling is a customer of the\nauthority or of an electric corporation, as defined in subdivision\nthirteen of section two of the public service law, and if the\nrefrigerator is provided by the owner, and if charges for electricity\nare included within the rent that the tenant pays to occupy such\ndwelling, the owner of such dwelling shall repay the authority for such\nfinancial assistance based on projected savings in energy costs that are\nestimated to accrue to the owner as a result of such replacement. As a\ncondition of participating in the program established by this\nsubdivision, such owner shall agree to be precluded from charging any\nadditional fee or collecting any rent increase to such tenant as a\nresult of such replacement.\n 11. To exercise all the powers necessary or convenient to carry out\nand effectuate the purposes and provisions of this title; and as\nincidental thereto to own, lease, build, operate, maintain and dispose\nof real and personal property of every kind and character, to acquire\nreal property and any or every interest therein for its lawful purposes\nby purchase, or by condemnation as hereinafter provided, to borrow money\nand secure the same by bonds or liens upon revenue from any property or\ncontracts held or to be held by it, to sell water or electric power, and\ngenerally to do any and every thing necessary or convenient to carry out\nthe purposes of this title, provided that the authority shall have no\npower at any time to pledge the credit of the state nor shall any of its\nobligations or securities be deemed to be obligations of the state nor\nshall the authority have the power to lease or sell any dam, or power\nhouse at the site.\n 12. Notwithstanding any limitations hereinbefore expressed, the\nauthority is authorized and directed forthwith or from time to time as\nit shall deem advisable and within the limitations of the appropriations\nmade available for it to initiate and prosecute all inquiries,\ninvestigations, surveys and studies which it may deem necessary or\ndesirable as preliminary to the effectuation of the other powers and\nduties conferred upon it by this title.\n 13. Notwithstanding any other provision of law to the contrary but\nsubject to the terms and conditions of federal energy regulatory\ncommission licenses, to allocate or reallocate directly or by sale for\nresale, two hundred fifty megawatts of firm Niagara project\nhydroelectric power as "expansion power" and four hundred forty-five\nmegawatts of firm Niagara project hydroelectric power as "replacement\npower" to businesses within the state located within thirty miles of the\nNiagara project, and four hundred ninety megawatts of firm and\ninterruptible power from the Saint Lawrence-FDR project as "preservation\npower" sold to businesses located within the counties of Jefferson,\nSaint Lawrence and Franklin, provided that the amount of expansion power\nallocated to businesses in Chautauqua county on January first, nineteen\nhundred eighty-seven shall continue to be allocated in such county and,\nprovided further that up to seventy megawatts of replacement power, up\nto thirty-eight and six-tenths megawatts of preservation power from the\nSaint Lawrence-FDR project which is relinquished or withdrawn after the\neffective date of chapter three hundred thirteen of the laws of two\nthousand five which amended this subdivision and, for the period ending\non December thirty-first, two thousand six, up to twenty megawatts of\nother power from the Saint Lawrence-FDR project which is unallocated as\nof the effective date of chapter three hundred thirteen of the laws of\ntwo thousand five which amended this subdivision, shall be allocated by\nthe authority together with such other funds of the authority as the\ntrustees deem feasible and advisable for energy cost savings benefits\npursuant to the twelfth undesignated paragraph of this section.\nProvided, however, that the amount of replacement, preservation power,\nor the additional twenty megawatts of Saint Lawrence-FDR power for the\nperiod ending December thirty-first, two thousand six made available for\nsuch purpose, used for energy cost savings benefits that are\nrelinquished by or withdrawn from a recipient thereof shall be offered\nby the authority proportionately for a period of six months for\nreallocation to applicants who qualify respectively for replacement or\npreservation power allocations as provided in this subdivision. If such\npower is not allocated within such period it shall be allocated for the\npurpose of energy cost savings benefits pursuant to subdivision (h) of\nsection one hundred eighty-three of the economic development law. The\nauthority shall negotiate contracts on reasonable terms and conditions\nto renew or extend every permanent contract allocation of expansion\npower in effect on the effective date of this subdivision and, to the\nextent consistent with such contracts, the authority shall negotiate\ncontracts on reasonable terms and conditions to extend or renew all\nother allocations or allotments of such power in effect on such date.\nThe authority shall negotiate contracts on reasonable terms and\nconditions to renew or extend for a period of at least five years every\npermanent contract allocation of replacement power in effect on the\neffective date of chapter three hundred thirteen of the laws of two\nthousand five which added this sentence and that would expire by its\nterms on or before the end of the initial federal energy regulatory\ncommission license for the Niagara project; provided that, in\nnegotiating the terms and conditions of such contracts, the authority\nmay consider a business' compliance with all current contractual\nobligations, including employment and power usage commitments. Contracts\nentered into pursuant to this subdivision shall contain reasonable\nprovisions providing for the partial or complete withdrawal of the power\nin the event the recipient fails to maintain mutually agreed levels of\nemployment, investment, and power utilization. Expansion or replacement\npower relinquished by businesses or withdrawn by the authority shall be\nallocated directly or by sale for resale by the authority to businesses\nwithin the state located within thirty miles of the Niagara project\nprovided, that the amount of power allocated to businesses in Chautauqua\ncounty on January first, nineteen hundred eighty-seven shall be\nallocated in such county. Preservation power that is relinquished by\nbusinesses or withdrawn by the authority shall be allocated directly or\nby sale for resale by the authority within the counties of Jefferson,\nSaint Lawrence and Franklin. Allocations made pursuant to this paragraph\nshall be made in accordance with criteria established by the trustees.\nSuch criteria shall address the expansion of industry and employment\npursuant to paragraph (a) of this subdivision and the revitalization of\nexisting industry pursuant to paragraph (b) of this subdivision.\n (a) Criteria for eligibility for expansion, replacement and\npreservation power. Each application for an allocation for expansion,\nreplacement or preservation power shall be evaluated by the trustees\nunder criteria which shall include but need not be limited to:\n (1) the number of jobs created as a result of a power allocation;\n (2) the business' long term commitment to the region as evidenced by\nthe current and/or planned capital investment in business' facilities in\nthe region;\n (3) the ratio of the number of jobs to be created to the amount of\npower requested;\n (4) the types of jobs created, as measured by wage and benefit levels,\nsecurity and stability of employment;\n (5) the amount of capital investment, including the type and cost of\nbuildings, equipment and facilities to be constructed, enlarged or\ninstalled;\n (6) the extent to which a power allocation will affect the overall\nproductivity or competitiveness of the business and its existing\nemployment;\n (7) the extent to which an allocation of power may result in a\ncompetitive disadvantage for other business in the state;\n (8) the growth potential of the business facility and the contribution\nof economic strength to the area in which the business facility is or\nwould be located;\n (9) the extent of the business' willingness to make jobs available to\npersons defined as eligible for services under the federal job training\npartnership act of nineteen hundred eighty-two and the extent of the\nbusiness' willingness to satisfy affirmative action goals;\n (10) the extent to which an allocation of power is consistent with\nstate, regional and local economic development strategies and priorities\nand supported by local units of government in the area in which the\nbusiness is located; and\n (11) the impact of the allocation on the operation of any other\nfacilities of the business, on other businesses within the region, and\nupon other electric ratepayers.\n (b) Revitalization. In addition to the criteria provided in paragraph\n(a) of this subdivision the trustees shall establish special criteria\nfor the evaluation of applications for power allocated for the\nrevitalization of industry. Such criteria shall include, but need not be\nlimited to:\n (1) that the business is likely to close, partially close or relocate\nresulting in the loss of a substantial number of jobs;\n (2) that the business is an important employer in the community and\nefforts to revitalize the business are in long-term interests of both\nemployers and the community;\n (3) that a reasonable prospect exists that the proposed allocation of\npower will enable the business to remain competitive and become\nprofitable and preserve jobs for a substantial period of time;\n (4) that the applicant demonstrates cooperation with the local\nelectricity distributor and other available sources of assistance to\nreduce energy costs to the maximum extent practicable, through\nconservation and load management; and\n (5) that the allocation will not unduly affect the cost of electric\nservice to customers of the local electricity distributor.\n 13-a. Recharge New York power program. (a) Notwithstanding any other\nprovision of law to the contrary, but subject to the terms and\nconditions of federal energy regulatory commission licenses, to\nallocate, reallocate or extend, directly or by sale for resale, up to\nnine hundred ten megawatts of recharge New York power to eligible\napplicants located within the state of New York upon the recommendation\nof the New York state economic development power allocation board\npursuant to section one hundred eighty-eight-a of the economic\ndevelopment law.\n (b) Recharge New York power shall mean and consist of equal amounts of\n(1) four hundred fifty-five megawatts of firm hydroelectric power from\nthe Niagara and Saint Lawrence hydroelectric projects to be withdrawn,\nas of the earliest date such power may be withdrawn consistent with\ncontractual requirements, from utility corporations that, prior to the\neffective date of this subdivision, purchased such power for the benefit\nof their domestic and rural consumers ("recharge New York hydropower"),\nand (2) power procured by the authority through market sources, a\ncompetitive procurement process, or authority sources (other than the\nNiagara and Saint Lawrence projects) (collectively or individually,\n"recharge New York market power"); provided, however, that if such\nrecharge New York market power comes from authority sources, the use of\nthat power shall not reduce the availability of, or cause an increase in\nthe price of, power provided by the authority for any other program\nauthorized in this article or pursuant to any other statute.\n (c) Notwithstanding section one thousand nine of this title or any\nother provision of law to the contrary, the authority is authorized,\nbeginning July first, two thousand twelve, to make available, contract\nwith and sell to such eligible applicants as are recommended by the\neconomic development power allocation board up to nine hundred ten\nmegawatts of recharge New York power for recharge New York power\nallocations. A recharge New York power allocation shall consist of equal\nparts of recharge New York hydropower and recharge New York market power\nas such terms are defined in paragraph (b) of this subdivision;\nprovided, however, that prior to entering into a contract with an\neligible applicant for the sale of recharge New York power, and prior to\nthe provision of electric service relating to the recharge New York\npower allocation, the authority shall offer each eligible applicant the\noption to decline to purchase the recharge New York market power\ncomponent of such allocation. If an eligible applicant declines to\npurchase such market power from the authority, the authority shall have\nno responsibility for supplying such market power to the eligible\napplicant.\n 13-b. Residential consumer discount programs. (a) Residential consumer\nelectricity cost discount. Notwithstanding any provision of this title\nor article six of the economic development law to the contrary, the\nauthority is authorized, as deemed feasible and advisable by the\ntrustees, to use revenues from the sale of hydroelectric power, and such\nother funds of the authority as deemed feasible and advisable by the\ntrustees, to fund monthly payments to be made for the benefit of such\nclasses of electricity consumers as enjoyed the benefits of authority\nhydroelectric power withdrawn pursuant to subdivision thirteen-a of this\nsection, for the purpose of mitigating price impacts associated with the\nreallocation of such power in the manner described in this subdivision.\nSuch monthly payments shall commence after such hydroelectric power is\nwithdrawn. The total annual amount of monthly payments for each of the\nthree twelve month periods following withdrawal of such hyrdoelectric\npower shall be one hundred million dollars. The total annual amount of\nmonthly payments for each of the two subsequent twelve month periods\nshall be seventy million dollars and fifty million dollars,\nrespectively. Thereafter, the total annual amount of monthly payments\nfor each twelve month period shall be thirty million dollars. The total\namount of monthly payments shall be apportioned by the authority among\nthe utility corporations that, prior to the effective date of this\nsubdivision, purchased such hydroelectric power for the benefit of their\ndomestic and rural consumers according to the relative amounts of such\npower purchased by such corporations. The monthly payments shall be\ncredited to the electricity bills of such corporations' domestic and\nrural consumers in a manner to be determined by the public service\ncommission of the state of New York. The monthly credit provided by any\nsuch corporation to any one consumer shall not exceed the total monthly\nelectric utility cost incurred by such consumer.\n (b) Agricultural consumer electricity cost discount. (1) Beginning\nwith the second twelve month period after such hydroelectric power is\nwithdrawn, up to eight million dollars of the residential consumer\nelectricity cost discount established by paragraph (a) of this\nsubdivision shall be dedicated for monthly payments to agricultural\nproducers who receive electric service at the residential rate. The\ntotal amount of monthly payments shall be apportioned by the authority\namong the utility corporations in the same manner as they are\napportioned in paragraph (a) of this subdivision. Monthly payments shall\nbe credited to the electricity bills of such corporations' agricultural\nconsumers in a manner to be determined by the public service commission\nof the state of New York. The combined monthly credit, under this\nparagraph and paragraph (a) of this subdivision, provided by any such\ncorporation to any one consumer shall not exceed the total monthly\nelectric utility cost incurred by such consumer.\n (2) The authority shall work cooperatively with the department of\npublic service to evaluate the agricultural consumer electricity cost\ndiscount, which shall include an assessment of the benefits to\nrecipients compared to the benefits the recipients received from the\nauthority's hydroelectric power, withdrawn pursuant to subdivision\nthirteen-a of this section, during the twelve month period ending\nDecember thirty-first, two thousand ten, and compared to other\nagricultural consumers that did not choose to receive the discount.\n (c) Energy efficiency program. (1) Beginning with the withdrawal of\nsuch hydroelectric power, the authority or the New York state energy\nresearch and development authority, shall conduct an energy efficiency\nprogram for five years to provide energy efficiency improvements for the\npurpose of reducing energy consumption for domestic and rural consumers.\nSuch energy efficiency program may be undertaken in cooperation with\nother energy efficiency programs offered by utility corporations, state\nagencies and authorities including but not limited to the New York state\nenergy research and development authority; provided however that energy\nsavings attributable to such other energy efficiency programs shall not\nbe included in determining the amount of energy saved pursuant to the\nprogram established by this paragraph;\n (2) The authority or the New York state energy research and\ndevelopment authority shall annually post on their website a report\nevaluating the energy efficiency program, including but not limited to,\nthe number of domestic and rural consumers who opted to participate in\nthe program and, if practicable, the estimated savings the domestic and\nrural consumers received by participating in the energy efficiency\nprogram.\n 14. To provide to the governor, to the speaker of the assembly, and to\nthe temporary president of the senate, on or before April first of each\nyear, an economic development report including projections for the next\nsucceeding twelve months of the amount of economic development power\nwhich will be or is expected to be available with a listing of the\ncurrent recipients of that power, and data on the number and types of\njobs resulting from allocation of economic development power. Such\nreport shall also include the amount of revenues collected and used in\nthe previous calendar year pursuant to the eighth unnumbered paragraph\nof this section.\n 15. To provide low cost electricity, as well as energy efficiency and\nconservation services and facilities using conventional or new energy\ntechnologies, to the following military establishments within the state:\nFort Drum, Fort Hamilton, United States Academy at West Point,\nWatervliet Arsenal, Niagara Falls Air Reserve Base, Air Force Research\nLaboratory at Rome, Defense Finance Accounting Services at the former\nRome Air Force Base, North East Air Defense Sector, Stewart Air National\nGuard Base, Hancock Field Air National Guard Base, Stratton Air National\nGuard Base and Air National Guard Base at Francis S. Gabreski Airport.\nServices provided pursuant to this section shall be provided only to\nsupport United States Department of Defense activities as they are\nconducted at such facilities. The authority may enter into contracts\nwith the United States, its agencies and instrumentalities, and other\npublic and private entities to effectuate the foregoing.\n 16. To complete a biennial energy plan in accordance with the\nprovisions of article six of the energy law. In addition to any\nrequirements of article six of the energy law, the authority shall\nprovide copies of its biennial energy plan to the governor, the\ntemporary president of the senate, the speaker of the assembly, the\nchair of the assembly committee on energy and the chair of the senate\ncommittee on energy and telecommunications. Further, the authority shall\ncooperate and participate in the state energy planning procedures as\nenumerated in article six of the energy law.\n 17. (a) As deemed feasible and advisable by the trustees, to finance\nand design, develop, construct, implement, provide and administer\nenergy-related projects, programs and services for any public entity,\nany independent not-for-profit institution of higher education within\nthe state, and any recipient of the economic development power,\nexpansion power, replacement power, preservation power, high load factor\npower, municipal distribution agency power, power for jobs, and recharge\nNew York power programs administered by the authority. In establishing\nand providing high performance and sustainable building programs and\nservices authorized by this subdivision, the authority is authorized to\nconsult standards, guidelines, rating systems, and/or criteria\nestablished or adopted by other organizations, including but not limited\nto the United States green building council under its leadership in\nenergy and environmental design (LEED) programs, the green building\ninitiative's green globes rating system, and the American National\nStandards Institute. The source of any financing and/or loans provided\nby the authority for the purposes of this subdivision may be the\nproceeds of notes issued pursuant to section one thousand nine-a of this\ntitle, the proceeds of bonds issued pursuant to section one thousand ten\nof this title, or any other available authority funds.\n (b) For the purposes of this subdivision, the following words and\nterms shall have the following meanings unless the context indicates\nanother meaning or intent:\n (1) "Agency" means any agency, department, or office of the state of\nNew York.\n (2) "Energy-related projects, programs and services" means energy\nefficiency projects and services, clean energy technology projects and\nservices, and high performance and sustainable building programs and\nservices, and the construction, installation and/or operation of\nfacilities or equipment done in connection with any such projects,\nprograms or services.\n (3) "Energy services contract" or "contract" means a contract pursuant\nto which the authority provides energy-related projects, programs and\nservices.\n (4) "High performance and sustainable building programs and services"\nmeans programs and services related to the renovation and retrofitting\nof buildings through the incorporation of standards, guidelines, rating\nsystems, and/or criteria relating to design and building techniques\nestablished by the authority pursuant to this section, which are\naddressed to such issues as energy efficiency, energy conservation, the\nuse of renewable energy, the reduction of air and other pollution, and\nthe conservation of materials and resources such as water.\n (5) "Public entity" means an agency, public authority, public benefit\ncorporation, public corporation, municipal corporation, school district,\nboard of cooperative educational services, public university, fire\ndistrict, district corporation, or special improvement district governed\nby a separate board of commissioners.\n (6) "Public authority" means a public authority formed by or under the\nlaws of the state of New York to the extent its facilities are located\nwithin the state, and the port authority of New York and New Jersey to\nthe extent that its facilities are located within the state.\n (7) "Public benefit corporation" means a public benefit corporation as\ndefined in subdivision four of section sixty-six of the general\nconstruction law.\n (8) "Public university" means the city university of New York\nincluding any senior college or community college as defined in section\nsixty-two hundred two of the education law, and the state university of\nNew York including four-year colleges established pursuant to section\nsixty-three hundred seven of the education law and community colleges as\ndefined in section sixty-three hundred one of the education law.\n (c) Any public entity is authorized to enter into an energy services\ncontract with the authority for energy-related projects, programs and\nservices that are authorized by this subdivision, provided that (i) the\nauthority issues and advertises written requests for proposals from\nthird party providers of goods and services in accordance with the\nauthority's procurement policies, procedures and/or guidelines, and (ii)\nthe authority shall not contract with a third party provider of goods\nand services if such person is listed on a debarment list maintained and\npublished in accordance with New York law, as being ineligible to submit\na bid on or be awarded any public contract or subcontract with the\nstate, any municipal corporation or public body.\n (d)(i) Notwithstanding any other provision of law to the contrary, any\nenergy services contract entered into by the authority with any public\nentity: (1) may have a term of up to thirty-five years duration,\nprovided, however, that the duration of any such contract shall not\nexceed the reasonably expected useful life of any facilities or\nequipment constructed, installed or operated as part of such\nenergy-related projects, programs and services subject to such contract;\nand (2) shall contain the following clause: "This contract shall be\ndeemed executory only to the extent of the monies appropriated and\navailable for the purpose of the contract, and no liability on account\ntherefor shall be incurred beyond the amount of such monies. It is\nunderstood that neither this contract nor any representation by any\npublic employee or officer creates any legal or moral obligation to\nrequest, appropriate or make available monies for the purpose of the\ncontract." A school district or board of cooperative educational\nservices may only enter into an energy services contract with the\nauthority for such maximum term as is prescribed in the regulations\npromulgated by the commissioner of education or the useful life of the\nfacilities or equipment being constructed, installed or operated,\nwhichever is less.\n (ii) Notwithstanding any other provision of law to the contrary, in\norder to provide an interest in real or other property necessary for the\nconstruction of facilities or the operation of equipment provided for in\nan energy services contract, a public entity may enter into a lease or\nother agreement with the authority concerning real or other property to\nwhich it holds title or which is under its administrative jurisdiction,\nas is necessary for such construction or operation, for the same length\nof time as the term of the energy services contract and on such terms\nand conditions as may be agreeable to the parties thereto and are not\notherwise inconsistent with law, and notwithstanding that such real or\nother property may remain useful to such entity for the purpose for\nwhich such real or other property was originally acquired or devoted or\nfor which such real or other property is being used.\n (e) Nothing contained in this subdivision is intended to limit, impair\nor affect the authority's legal authority to provide energy efficiency\nand energy services programs that existed as of the effective date of\nthis subdivision.\n (f) The authority shall complete and submit a report, on or before\nJanuary thirty-first, two thousand twelve, on those activities\nundertaken pursuant to this subdivision to the governor, the speaker of\nthe assembly, the temporary president of the senate, the minority leader\nof the senate, the minority leader of the assembly, the chair of the\nsenate finance committee, the chair of the assembly ways and means\ncommittee, the chair of the assembly energy committee and the chair of\nthe senate energy committee.\n 18. For the purpose of furnishing the state with systematic\ninformation regarding the status and the activities of the authority,\nthe authority shall submit to the governor, the temporary president of\nthe senate, speaker of the assembly, the minority leader of the senate\nand the minority leader of the assembly, within ninety days after the\nend of its fiscal year, a complete and detailed annual report on each\neconomic development power program it administers. Such annual report\nshall include, but not be limited to, the following information:\n a. the number of recipients of economic power program benefits, the\neconomic region in which each recipient is located, the type and amount\nof assistance provided, megawatts of power awarded, length of current\ncontract, current contract compliance status, last audit, number of jobs\nretained and/or added in the fiscal year, approximate energy efficiency\nsavings and amount of power reallocated from previous years due to\nforfeited benefits; and\n b. cost to the authority to provide economic development power\nprograms during the previous fiscal year.\n 19. To cooperate with the western New York power proceeds allocation\nboard and provide the board with such information and assistance as the\nboard reasonably requests, including reasonable staff services,\naccounting, clerical and secretarial assistance, office space, and\nequipment reasonably requested by the western New York power proceeds\nallocation board to fulfill its duties.\n 20. To establish an account to be known as the western New York\neconomic development fund, which shall consist of "net earnings" as\ndefined in article six-a of the economic development law, deposited in\nsuch amounts as determined to be feasible and advisable by the trustees.\nSuch earnings shall be deposited no less frequently than quarterly. The\nfirst deposit into the fund shall be made ninety days after the\neffective date of this subdivision, and shall include all such net\nearnings accrued since the effective date of chapter four hundred\nthirty-six of the laws of two thousand ten. At least fifteen percent of\nsuch funds shall be dedicated towards eligible projects which are\nenergy-related projects, programs and services as such term is defined\nin subparagraph two of paragraph (b) of subdivision seventeen of this\nsection. In addition to funding eligible projects, as defined in article\nsix-a of the economic development law, the authority may use western New\nYork economic development fund monies to cover reasonable costs and\nexpenses of the authority related to the management and administration\nof the western New York power proceeds allocation program created by\narticle six-a of the economic development law.\n 21. The authority may, in its discretion, consult with the western New\nYork power proceeds allocation board in the application process relating\nto the allocation of expansion power and replacement power.\n 22. The authority shall establish processes for application review and\nallocation of fund benefits provided for in article six-a of the\neconomic development law.\n 23. The authority shall include in the annual report prepared pursuant\nto subdivision eighteen of this section, an accounting for the subject\nyear that provides (a) the amount of expansion power and replacement\npower sold into the wholesale market by the authority, and (b) the net\nearnings, as such term is defined in section one hundred eighty-nine-a\nof the economic development law, paid into the western New York economic\ndevelopment fund.\n 24. (a) For purposes of this subdivision, the terms "authority-TMED\ncontract", "eligible project", "net earnings", "northern New York power\nproceeds allocation board" and "St. Lawrence county economic development\npower" shall have the meanings ascribed to such terms in article seven-A\nof the economic development law.\n (b) The authority shall be authorized to cooperate with the northern\nNew York power proceeds allocation board, and provide such board with\nsuch information and assistance, including reasonable staff services,\naccounting, clerical and secretarial assistance, office space, and\nequipment, as the board reasonably requests in order to fulfill its\nduties under article seven-A of the economic development law.\n (c) The authority shall establish an account to be known as the\nnorthern New York economic development fund, which shall consist solely\nof net earnings. The authority, as determined to be feasible and\nadvisable by the trustees, shall deposit net earnings into the fund no\nless than quarterly, provided, however, that the amount of St. Lawrence\ncounty economic development power that may be used by the authority to\ngenerate net earnings shall not exceed the lesser of twenty megawatts or\nthe amount of St. Lawrence county economic development power that has\nnot been allocated by the authority under the authority-TMED contract\nfor sub-allocations, and provided further that beginning five years from\nthe effective date of this subdivision, the amount of St. Lawrence\ncounty economic development power that may be used by the authority to\ngenerate net earnings shall not exceed the lesser of ten megawatts or\nthe amount of St. Lawrence county economic development power that has\nnot been allocated by the authority under the authority-TMED contract\nfor sub-allocations. At least fifteen percent of net earnings paid into\nthe fund shall be dedicated to eligible projects which are\nenergy-related projects, programs and services as such term is defined\nin subparagraph two of paragraph (b) of subdivision seventeen of this\nsection. In addition to funding eligible projects, the authority may use\nnorthern New York economic development fund monies to cover reasonable\ncosts and expenses of the authority related to the management and\nadministration of the northern New York power proceeds allocation\nprogram created by article seven-A of the economic development law.\n (d) The authority is hereby authorized to establish processes for\napplication review and allocation of fund benefits, and to promulgate\nsuch rules and regulations as it deems necessary to fulfill the purposes\nof this subdivision and the duties assigned to it under article seven-A\nof the economic development law.\n (e) The authority shall include in the annual report prepared pursuant\nto subdivision eighteen of this section, an accounting for the subject\nyear that provides the amount of St. Lawrence county economic\ndevelopment power sold into the wholesale market by the authority, and\nthe net earnings paid into the northern New York economic development\nfund.\n The authority is authorized to allocate up to seventy megawatts of\nunallocated power from the Niagara project sold prior to the effective\ndate of this paragraph as replacement power, up to thirty-eight and\nsix-tenths megawatts of preservation power from the Saint Lawrence-FDR\nproject which is relinquished or withdrawn after the effective date of\nthis paragraph, and for the period ending on December thirty-first, two\nthousand six, up to an additional twenty megawatts of power from the\nSaint Lawrence-FDR project which is unallocated as of the effective date\nof this paragraph, for sale into the wholesale market, the net earnings\nfrom which and such other funds of the authority as deemed feasible and\nadvisable by the trustees, shall be used for energy cost savings\nbenefits. Such energy cost savings benefits shall be made upon\nrecommendation of the economic development power allocation board,\npursuant to subdivision (h) of section one hundred eighty-three of the\neconomic development law. For purposes of this paragraph, the term net\nearnings shall mean any excess of revenues earned from the sale of such\npower allocated to the wholesale market from the Niagara and Saint\nLawrence-FDR projects over the revenues that would have been received\nhad such firm power been allocated and sold on a firm basis by the\nauthority prior to the effective date of this paragraph.\n The governor shall establish a temporary commission on the future of\nNew York state power programs for economic development as soon as\npracticable but no later than May first, two thousand six. On or before\nDecember first, two thousand six, the commission shall make\nrecommendations to the governor and the legislature on whether to\ncontinue, modify, expand or replace the state's economic development\npower programs, including but not limited to the power for jobs program\nand the energy cost savings benefit program, and shall recommend\nlegislative language necessary to implement its recommendations. The\ncommission shall consist of eleven members, comprised of five members\nappointed by the governor, one of whom he or she shall designate as\nchairperson, two members by the speaker of the assembly, two members by\nthe temporary president of the senate, one member by the minority leader\nof the assembly and one member by the minority leader of the senate.\n