Bill Text: NY A04872 | 2017-2018 | General Assembly | Introduced
Bill Title: Authorizes the power authority of the state of New York and the Long Island power authority to enter into public-private partnerships for the improvement of the state's electric transmission grid.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2018-01-24 - enacting clause stricken [A04872 Detail]
Download: New_York-2017-A04872-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 4872 2017-2018 Regular Sessions IN ASSEMBLY February 3, 2017 ___________ Introduced by M. of A. DINOWITZ -- read once and referred to the Commit- tee on Corporations, Authorities and Commissions AN ACT to amend the public authorities law, in relation to authorizing the power authority of the state of New York and the Long Island power authority to participate in public-private transmission projects to improve the state's electric transmission grid The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Legislative findings and purpose. The legislature hereby 2 finds and determines that: 3 1. The state's vital electric transmission grid is aging, congested 4 and subject to outages caused by storms, obsolescence and the growing 5 demands for energy by the state's residents, and such problems and 6 conditions pose serious threats to the health, welfare, safety and 7 economic well-being of the people of the state of New York. 8 2. The condition and operation of the state's electric transmission 9 grid is a matter of state concern, and it is in the public interest to 10 provide for the means to repair, replace, reinforce, modernize and 11 expand the state's electric transmission grid to ensure the safe and 12 reliable provision of electric service to the state's residents now and 13 into the future. 14 3. A modernized electric transmission grid and energy highway will 15 also encourage investments in new energy-related infrastructure and 16 technologies, facilitate the development and integration into the power 17 grid of renewable energy resources, and stimulate and support economic 18 development in the state. Public-private transmission projects undertak- 19 en jointly by the owner of transmission facilities, systems and infras- 20 tructure, including the power authority of the state of New York and the 21 Long Island power authority, which provide for the ongoing planning, 22 construction, owning, operating, maintaining and expanding of electric 23 transmission facilities, systems and infrastructure can serve as an EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD07526-01-7A. 4872 2 1 effective means to address the aforementioned problems and concerns and 2 stimulate ongoing critical investment in the state's electric trans- 3 mission grid. 4 4. The purposes of this act can be achieved, while managing and miti- 5 gating potential liabilities, by authorizing the power authority of the 6 state of New York and the Long Island power authority to participate in 7 such public-private transmission projects through the formation of 8 subsidiary companies. 9 § 2. Section 1001 of the public authorities law is amended by adding a 10 new closing paragraph to read as follows: 11 It is further declared that: (a) there should be full cooperation and 12 coordination among private and public owners and operators of electric 13 transmission facilities, systems and infrastructure in the state, 14 including the authority, for the purpose of expeditiously constructing, 15 repairing, replacing, reinforcing, modernizing or expanding the state's 16 electric transmission grid; (b) it is desirable that the authority, 17 which owns and operates electric transmission assets in the state, 18 participate in public-private transmission projects that are undertaken 19 by a limited liability company or other appropriate organizational 20 structure, through a subsidiary company formed by the authority as 21 authorized by this title; and (c) the authority should be authorized to 22 participate in public-private transmission projects and transfer trans- 23 mission assets or any interest therein in connection with its partic- 24 ipation in such a limited liability company or other appropriate organ- 25 izational structure on such terms and conditions as the authority may 26 negotiate. 27 § 3. Section 1005 of the public authorities law is amended by adding a 28 new subdivision 26 to read as follows: 29 26. a. For purposes of this subdivision, the following terms shall 30 have the meanings indicated: 31 (i) "Subsidiary company" means a subsidiary company formed, wholly- 32 owned and controlled by the authority in accordance with and subject to 33 the business corporation law, the not-for-profit corporation law, the 34 limited liability company law or the transportation corporations law. 35 (ii) "Transco master agreement" means a written agreement providing 36 for the formation and operation of a limited liability company or other 37 organizational structure to serve as a transco company and which 38 provides for, among other things, the rights and obligations of members 39 of such transco company. 40 (iii) "Transco ancillary agreement" means a written agreement, other 41 than a transco project agreement, between the authority or subsidiary 42 company and the transco company and/or members of a transco company, 43 made in accordance with the transco master agreement, for the purpose of 44 implementing the transco master agreement. 45 (iv) "Transco company" means an entity formed in accordance with a 46 transco master agreement primarily for the purpose of engaging in the 47 business of planning, constructing, owning, operating, maintaining, and 48 expanding electric transmission facilities, systems and infrastructure 49 serving the people of the state of New York. 50 (v) "Transco project" means a project undertaken by the transco compa- 51 ny in accordance with a transco master agreement. 52 (vi) "Transco project agreement" means a written agreement between the 53 authority or subsidiary company and the transco company and/or members 54 of a transco company, made in accordance with the transco master agree- 55 ment, that relates to a specific transco project.A. 4872 3 1 (vii) "Transmission assets" means: (1) all physical assets (including 2 but not limited to electrical transmission lines, poles, towers and 3 similar structures, conduits, substations, converter stations, transfor- 4 mers, conductors, insulators, switching devices, controls, breakers, 5 buses, stations, rectifiers, regulators, emergency and protective equip- 6 ment and devices, utility interconnections and other equipment used or 7 necessary for the control, dispatch, receipt and delivery of energy by 8 such facilities) used for the purpose of transmitting or delivering 9 direct or alternating current electric energy at voltages primarily of 10 one hundred kilovolts or higher to loads or interconnection points; and 11 (2) all associated (a) tangible and intangible property used to operate, 12 control, protect and maintain such assets, (b) real property rights for 13 lands and rights-of-way, sites, and places in which such assets are 14 situated or installed, and (c) legal and regulatory rights, authori- 15 zations, permits, and consents of any nature to own, occupy, construct, 16 use, operate and maintain, and receive or dispose of revenues from such 17 assets or lands on which such assets are situated, existing, owned, 18 leased, designed, used and operated. 19 b. Notwithstanding the provisions of any other law, the authority may 20 (i) participate in public/private partnerships to provide for the means 21 to construct, repair, replace, reinforce, modernize and expand the 22 state's electric transmission grid to ensure the safe and reliable 23 provision of electric service to the state's residents now and into the 24 future, (ii) form a subsidiary company for the purpose of participating 25 in a transco company, (iii) participate in the transco company by caus- 26 ing the subsidiary company to become a party to a transco master agree- 27 ment and exercise the rights and perform the obligations of a transco 28 company member as may be provided for in a transco master agreement, and 29 (iv) exercise the other powers and duties provided for by this subdivi- 30 sion. 31 c. Notwithstanding the provisions of any other law, in addition to any 32 other powers and duties granted to it under this title, the authority 33 shall be authorized to: 34 (i) exercise all of the rights and privileges associated with any 35 ownership interest in or organizer of the subsidiary company; 36 (ii) issue its bonds, notes and other evidence of indebtedness to 37 finance the operations of the subsidiary company, including the subsid- 38 iary company's participation in and obligations undertaken in connection 39 with a transco company; 40 (iii) lend, or otherwise transfer monies to the subsidiary company, 41 including the proceeds of the authority's bonds, notes, other evidence 42 of indebtedness and other authority funds; 43 (iv) receive monies from the subsidiary company, including monies that 44 result from the operation of the transco company; 45 (v) as deemed feasible and advisable by the trustees, transfer to the 46 subsidiary company transmission assets or interests therein that have 47 been or are expected to be used in projects undertaken by the transco 48 company for such consideration and on such other terms and conditions as 49 the authority shall negotiate; 50 (vi) receive from the subsidiary company or the transco company any 51 personal or real property; 52 (vii) enter into guarantee agreements in connection with the subsid- 53 iary company's participation in the transco company; 54 (viii) enter into contracts and other forms of agreement with the 55 transco company, the subsidiary company and other members of the transco 56 company;A. 4872 4 1 (ix) pledge or assign all or any portion of any interest in a transco 2 company; 3 (x) transfer and receive all or any portion of any interest in a tran- 4 sco company; 5 (xi) sell, purchase, or otherwise transfer all or any portion of any 6 interest in a transco company on such terms and conditions as the 7 authority deems appropriate; 8 (xii) assign one or more employees to provide services to a transco 9 company for a specified period of time, provided that any such employee 10 shall continue to be an employee of the authority; and 11 (xiii) dissolve or terminate the subsidiary company in accordance with 12 applicable law. 13 d. Notwithstanding the provisions of any other law, no trustee, offi- 14 cer or employee of the state, or of any state agency, public authority 15 or public benefit corporation, shall be deemed to have forfeited or 16 shall forfeit such person's office or employment or any benefits associ- 17 ated therewith by reason of such person's acceptance of membership on, 18 or such person being an officer, employee or agent of a subsidiary 19 company, or by reason of such person's provision of services to a 20 subsidiary company. 21 e. The provisions of section twenty-eight hundred seventy-nine-a of 22 this chapter shall be applicable to any transco master agreement to 23 which the authority or subsidiary company is a party, but shall be inap- 24 plicable to any transco ancillary agreement or transco project agreement 25 that otherwise satisfies the requirements of paragraph (a) or (b) of 26 subdivision one of such section provided that (i) a final or substan- 27 tially negotiated form of such transco ancillary agreement or transco 28 project agreement, as the case may be, is annexed to a transco master 29 agreement that has become valid and enforceable in accordance with the 30 provisions of section twenty-eight hundred seventy-nine-a of this chap- 31 ter, and (ii) in the case of a transco project agreement, the final 32 executed form of such transco project agreement is limited to a transco 33 project that was identified in such transco master agreement. 34 f. The provisions of title five-A of article nine of this chapter 35 shall be inapplicable to any disposal of property by the authority or 36 subsidiary company that (i) is otherwise authorized by this title, or 37 (ii) is made in accordance with a transco master agreement that has 38 become valid and enforceable in accordance with the provisions of 39 section twenty-eight hundred seventy-nine-a of this chapter. 40 g. No acts or activities taken or proposed to be taken by the authori- 41 ty or a subsidiary company pursuant to the provisions of this subdivi- 42 sion, including the execution of a transco master agreement, and the 43 issuance of bonds, notes, or other obligations, shall be deemed to be 44 "actions" for the purposes or within the meaning of article eight of the 45 environmental conservation law. 46 h. Notwithstanding the provisions of any other law, the authority and 47 the subsidiary company may only participate in a transco company that 48 constructs, repairs, replaces, reinforces, modernizes or expands trans- 49 mission assets, and may not participate in a transco company that 50 finances or constructs new electric generating facilities. 51 § 4. Section 1020-a of the public authorities law, as added by chapter 52 517 of the laws of 1986, is amended by adding a new closing paragraph to 53 read as follows: 54 The legislature further finds and declares that: (i) there should be 55 full cooperation and coordination among private and public owners and 56 operators of electric transmission facilities, systems and infrastruc-A. 4872 5 1 ture in the state, including the authority, for the purpose of expe- 2 ditiously constructing, repairing, replacing, reinforcing, modernizing 3 or expanding the state's electric transmission grid; (ii) it is desira- 4 ble that the authority, which owns and operates electric transmission 5 assets in the state, participates in public-private transmission 6 projects that are undertaken by a limited liability company or other 7 appropriate organizational structure, through a subsidiary company 8 formed by the authority as authorized by this title; and (iii) the 9 authority should be authorized to participate in public-private trans- 10 mission projects and transfer transmission assets or any interest there- 11 in in connection with its participation in such a limited liability 12 company or other appropriate organizational structure on such terms and 13 conditions as the authority may negotiate. 14 § 5. Subdivision 2 of section 1020-c of the public authorities law, as 15 added by chapter 517 of the laws of 1986, is amended to read as follows: 16 2. The area of operations of the authority shall be the service area, 17 provided that the authority or subsidiary company may own an interest in 18 transmission assets that are located in whole or in part outside the 19 service area. 20 § 6. Section 1020-f of the public authorities law is amended by adding 21 a new subdivision (g-1) to read as follows: 22 (g-1) (i) For purposes of this subdivision, the following terms have 23 the meanings indicated: 24 1. "Subsidiary company" means a subsidiary company formed, wholly- 25 owned and controlled by the authority in accordance with and subject to 26 the business corporation law, the not-for-profit corporation law, the 27 limited liability company law or the transportation corporations law. 28 2. "Transco master agreement" means a written agreement providing for 29 the formation and operation of a limited liability company or other 30 organizational structure to serve as a transco company and which 31 provides for, among other things, the rights and obligations of members 32 of such transco company. 33 3. "Transco ancillary agreement" means a written agreement, other than 34 a transco project agreement, between the authority or subsidiary company 35 and the transco company and/or members of a transco company, made in 36 accordance with the transco master agreement, for the purpose of imple- 37 menting the transco master agreement. 38 4. "Transco company" means an entity formed in accordance with a tran- 39 sco master agreement primarily for the purpose of engaging in the busi- 40 ness of planning, constructing, owning, operating, maintaining, and 41 expanding electric transmission facilities, systems and infrastructure 42 serving the people of the state of New York. 43 5. "Transco project" means a project undertaken by the transco company 44 in accordance with a transco master agreement. 45 6. "Transco project agreement" means a written agreement between the 46 authority or subsidiary company and the transco company and/or members 47 of a transco company, made in accordance with the transco master agree- 48 ment, that relates to a specific transco project. 49 7. "Transmission assets" means: (A) all physical assets (including but 50 not limited to electrical transmission lines, poles, towers and similar 51 structures, conduits, substations, converter stations, transformers, 52 conductors, insulators, switching devices, controls, breakers, buses, 53 stations, rectifiers, regulators, emergency and protective equipment and 54 devices, utility interconnections and other equipment used or necessary 55 for the control, dispatch, receipt and delivery of energy by such facil- 56 ities) used for the purpose of transmitting or delivering direct orA. 4872 6 1 alternating current electric energy at voltages primarily of one hundred 2 kilovolts or higher to loads or interconnection points; and (B) all 3 associated (I) tangible and intangible property used to operate, 4 control, protect and maintain such assets, (II) real property rights for 5 lands and rights-of-way, sites, and places in which such assets are 6 situated or installed, and (III) legal and regulatory rights, authori- 7 zations, permits, and consents of any nature to own, occupy, construct, 8 use, operate and maintain, and receive or dispose of revenues from such 9 assets or lands on which such assets are situated, existing, owned, 10 leased, designed, used and operated. 11 (ii) Notwithstanding the provisions of any other law, including the 12 provisions of section one thousand twenty-i of this title, the authority 13 may 1. form a subsidiary company for the purpose of participating in a 14 transco company, 2. participate in the transco company by causing the 15 subsidiary company to become a party to a transco master agreement and 16 exercise the rights and perform the obligations of a transco company 17 member as may be provided for in a transco master agreement, and 3. 18 exercise the other powers and duties provided for by this subdivision. 19 (iii) Notwithstanding the provisions of any other law, in addition to 20 any other powers and duties granted to it under this title, the authori- 21 ty shall be authorized to: 22 1. participate in public/private partnerships to provide for the 23 means to construct, repair, replace, reinforce, modernize or expand the 24 state's electric transmission grid to ensure the safe and reliable 25 provision of electric service to the service area and the state's resi- 26 dents now and into the future; 27 2. exercise all of the rights and privileges associated with any 28 ownership interest in or organizer of the subsidiary company; 29 3. issue its bonds, notes and other evidence of indebtedness to 30 finance the operations of the subsidiary company, including the subsid- 31 iary company's participation in and obligations undertaken in connection 32 with a transco company; 33 4. lend, or otherwise transfer monies to the subsidiary company, 34 including the proceeds of the authority's bonds, notes, other evidence 35 of indebtedness and other authority funds; 36 5. receive monies from the subsidiary company, including monies that 37 result from the operation of the transco company; 38 6. as deemed feasible and advisable by the trustees, transfer to the 39 subsidiary company transmission assets that have been or are expected to 40 be used in projects undertaken by the transco company for such consider- 41 ation and on such other terms and conditions as the authority shall 42 negotiate; 43 7. receive from the subsidiary company or the transco company any 44 personal or real property; 45 8. enter into guarantee agreements in connection with the subsidiary 46 company's participation in the transco company; 47 9. enter into contracts and other forms of agreement with the transco 48 company, the subsidiary company and other members of the transco compa- 49 ny; 50 10. pledge or assign all or any portion of any interest in a transco 51 company; 52 11. transfer and receive all or any portion of any interest in a tran- 53 sco company; 54 12. sell, purchase, or otherwise transfer all or any portion of any 55 interest in a transco company on such terms and conditions as the 56 authority deems appropriate;A. 4872 7 1 13. assign one or more employees to provide services to a transco 2 company for a specified period of time, provided that any such employee 3 shall continue to be an employee of the authority; and 4 14. dissolve or terminate the subsidiary company in accordance with 5 applicable law. 6 (iv) Notwithstanding the provisions of any other law, no trustee, 7 officer or employee of the state, or of any state agency, public author- 8 ity or public benefit corporation, shall be deemed to have forfeited or 9 shall forfeit such person's office or employment or any benefits associ- 10 ated therewith by reason of such person's acceptance of membership on, 11 or such person being an officer, employee or agent of, a subsidiary 12 company, or by reason of such person's provision of services to a 13 subsidiary company. 14 (v) The provisions of section one thousand twenty-cc of this title 15 shall be inapplicable to any transco master agreement, transco ancillary 16 agreement, or transco project agreement. 17 (vi) The provisions of section twenty-eight hundred seventy-nine-a of 18 this chapter shall be applicable to any transco master agreement to 19 which the authority or subsidiary company is a party, but shall be inap- 20 plicable to any transco ancillary agreement or transco project agreement 21 that otherwise satisfies the requirements of paragraph (a) or (b) of 22 subdivision one of such section provided that 1. a final or substantial- 23 ly negotiated form of such transco ancillary agreement or transco 24 project agreement, as the case may be, is annexed to a transco master 25 agreement that has become valid and enforceable in accordance with the 26 provisions of section twenty-eight hundred seventy-nine-a of this chap- 27 ter, and 2. in the case of a transco project agreement, the final 28 executed form of such transco project agreement is limited to a transco 29 project that was identified in such transco master agreement. 30 (vii) The provisions of title five-A of article nine of this chapter 31 shall be inapplicable to any disposal of property by the authority or 32 subsidiary company that 1. is otherwise authorized by this title, or 2. 33 is made in accordance with a transco master agreement that has become 34 valid and enforceable in accordance with the provisions of section twen- 35 ty-eight hundred seventy-nine-a of this chapter. 36 (viii) The provisions of paragraph (d) of subdivision one of section 37 one thousand twenty-s of this title and section three-b of the public 38 service law shall be inapplicable to the rates, services and practices 39 related to the transco master agreement and any actions undertaken by 40 the authority or subsidiary corporation in accordance with the transco 41 master agreement. 42 (ix) No acts or activities taken or proposed to be taken by the 43 authority or a subsidiary company pursuant to the provisions of this 44 subdivision, including the execution of a transco master agreement, and 45 the issuance of bonds, notes, or other obligations, shall be deemed to 46 be "actions" for the purposes or within the meaning of article eight of 47 the environmental conservation law. 48 (x) Notwithstanding the provisions of any other law, the authority and 49 the subsidiary company may only participate in a transco company that 50 constructs, repairs, replaces, reinforces, modernizes or expands trans- 51 mission assets, and may not participate in a transco company that 52 finances or constructs new electric generating facilities. 53 § 7. Severability clause. If any clause, sentence, paragraph, subdivi- 54 sion, section or part of this act shall be adjudged by any court of 55 competent jurisdiction to be invalid, such judgment shall not affect, 56 impair, or invalidate the remainder thereof, but shall be confined inA. 4872 8 1 its operation to the clause, sentence, paragraph, subdivision, section 2 or part thereof directly involved in the controversy in which such judg- 3 ment shall have been rendered. It is hereby declared to be the intent of 4 the legislature that this act would have been enacted even if such 5 invalid provisions had not been included therewith. 6 § 8. This act shall take effect immediately.
