S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         4211
                              2015-2016 Regular Sessions
                                   I N  S E N A T E
                                    March 11, 2015
                                      ___________
       Introduced  by  Sen.  GRIFFO -- read twice and ordered printed, and when
         printed to be committed to the Committee on  Energy  and  Telecommuni-
         cations
       AN  ACT  to  amend the public service law, the public buildings law, the
         real property tax law and the public authorities law, in  relation  to
         expansion of natural gas service
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1.  Legislative  intent.  The  legislature  hereby  finds  and
    2  declares that the extension of natural gas distribution lines within the
    3  state  has  multiple  benefits  to New Yorkers, including a reduction in
    4  emissions with the resultant health benefits, increased economic  activ-
    5  ity  with  the  creation of jobs through improved energy infrastructure,
    6  energy cost savings to consumers, and improved energy efficiency.
    7    Natural gas is the cleanest burning fossil fuel.  It  has  a  positive
    8  impact  on  the  environment by cutting emissions of particulate matter.
    9  These emissions have been  linked  to  heart  and  lung  conditions  and
   10  contribute to asthma rates, particularly in urban areas.
   11    Natural  gas  prices  are  at a low point and will result in increased
   12  disposable income for consumers and improved operational efficiency  for
   13  business.  Extending  the  state's natural gas distribution line infras-
   14  tructure will create a positive business environment  for  manufacturers
   15  and  other  businesses that are looking to stabilize their energy costs.
   16  Natural gas distribution line extensions will spur economic  development
   17  in the business sector and create jobs.
   18    This  legislation  will  have  the  effect  of  protecting the state's
   19  natural resources, including protecting its  atmosphere,  while  at  the
   20  same time stimulating the development of new jobs and the economy.
   21    S  2.  The public service law is amended by adding a new section 27 to
   22  read as follows:
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD02116-02-5
       S. 4211                             2
    1    S 27. EXPANSION PERMIT APPLICATIONS. ANY GAS CORPORATION  OR  COMBINA-
    2  TION  GAS  AND  ELECTRIC  CORPORATION APPLYING FOR PERMITS IN CONNECTION
    3  WITH THE EXPANSION OF  NATURAL  GAS  DISTRIBUTION  SERVICE  THROUGH  THE
    4  EXTENSION OF EXISTING NATURAL GAS DISTRIBUTION LINES MAY CONFER WITH THE
    5  COMMISSION  TO  OBTAIN  ASSISTANCE  IN  FACILITATING CONTACTS WITH STATE
    6  AGENCIES AND LOCAL  GOVERNMENTS  FOR  PROCESSING  AND  REVIEWING  PERMIT
    7  APPLICATIONS  TO  ACHIEVE THE PROMPT AND EFFICIENT PROCESSING AND REVIEW
    8  OF APPLICATIONS. THE COMMISSION MAY ACT AS LEAD AGENCY PURSUANT TO ARTI-
    9  CLE EIGHT OF THE ENVIRONMENTAL CONSERVATION LAW, IN CONNECTION WITH SUCH
   10  PERMIT APPLICATION BY A GAS CORPORATION OR COMBINATION GAS AND  ELECTRIC
   11  CORPORATION FRANCHISED UNDER THIS CHAPTER.  THE DEPARTMENTS OF TRANSPOR-
   12  TATION  AND  ENVIRONMENTAL  CONSERVATION  SHALL,  TO  THE MAXIMUM EXTENT
   13  FEASIBLE,  ESTABLISH  PROCEDURES  TO  EXPEDITE  PERMIT  APPLICATIONS  IN
   14  CONNECTION  WITH  THE  EXPANSION  OF  NATURAL  GAS  DISTRIBUTION SERVICE
   15  THROUGH THE EXTENSION OF EXISTING NATURAL GAS DISTRIBUTION LINES.
   16    S 3. The public service law is amended by adding a new section 18-d to
   17  read as follows:
   18    S 18-D. SURCHARGES. NOTWITHSTANDING ANY LAW, RULE, REGULATION OR ORDER
   19  TO THE CONTRARY, THE COMMISSION SHALL,  COMMENCING  OCTOBER  FIRST,  TWO
   20  THOUSAND  FIFTEEN,  DEDICATE NO LESS THAN FIFTY MILLION DOLLARS PER YEAR
   21  FROM ASSESSMENTS INTENDED TO PROVIDE FUNDING TO  ADVANCE  CLEANER,  MORE
   22  RESILIENT,  MORE EFFICIENT, LOCALIZED AND MORE AFFORDABLE ENERGY INFRAS-
   23  TRUCTURE, AND TO ENHANCE THE GOALS OF THE STATE ENERGY  PLAN,  COLLECTED
   24  BY  GAS  CORPORATIONS AND COMBINATION GAS AND ELECTRIC CORPORATIONS FROM
   25  THEIR GAS CUSTOMERS. THESE  FUNDS  MUST  BE  USED  FOR  THE  SUPPORT  OF
   26  CONSTRUCTION  OF INFRASTRUCTURE DESIGNED TO EXTEND THE SUPPLY OF NATURAL
   27  GAS FROM EXISTING LARGE CAPACITY INFRASTRUCTURE TO AREAS  PRESENTLY  NOT
   28  SERVED  BY  NATURAL GAS INFRASTRUCTURE SUPPLY, INCLUDING BUT NOT LIMITED
   29  TO NEW INDUSTRIAL (ESPECIALLY MANUFACTURING), COMMERCIAL, RESIDENTIAL OR
   30  PUBLIC END-USE CUSTOMERS OF A GAS CORPORATION  OR  COMBINATION  GAS  AND
   31  ELECTRIC  CORPORATION  PROVIDING SERVICE IN NEW YORK STATE WITH SUCH NEW
   32  CUSTOMER'S CONSENT. THE COMMISSION SHALL  ALLOCATE  SUCH  FUNDS  TO  GAS
   33  CORPORATIONS  AND  COMBINATION  GAS  AND ELECTRIC CORPORATIONS THROUGH A
   34  STAKEHOLDER PROCESS ESTABLISHED  BY  THE  COMMISSION.  SUCH  STAKEHOLDER
   35  PROCESS SHALL ESTABLISH RULES AND PROCEDURES FOR ALLOCATIONS PURSUANT TO
   36  THIS SECTION CONSISTENT WITH THE PUBLIC POLICY GOALS OF THE STATE.
   37    S  4.  The public buildings law is amended by adding a new section 144
   38  to read as follows:
   39    S 144. CLEAN NATURAL  GAS  HEAT  IN  PUBLIC  BUILDINGS.  EACH  CAPITAL
   40  PROJECT FOR A PUBLIC BUILDING THAT INCLUDES THE INSTALLATION OR REPLACE-
   41  MENT  OF  A BOILER FOR HEATING SHALL REQUIRE THE COMMISSIONER OF GENERAL
   42  SERVICES TO UNDERTAKE A STUDY OF ENERGY EFFICIENCY, ENVIRONMENTAL  EFFI-
   43  CACY  AND  COST  OF USING NATURAL GAS HEATING. SUCH STUDY SHALL CONSIDER
   44  THE BENEFITS TO SURROUNDING COMMUNITIES IN THE EVENT THAT IT  IS  NECES-
   45  SARY TO EXTEND A MAIN NATURAL GAS DISTRIBUTION PIPELINE IN EXCESS OF ONE
   46  HUNDRED FEET TO OBTAIN SUCH SERVICES.
   47    S  5.  The  real  property  tax law is amended by adding a new section
   48  485-r to read as follows:
   49    S 485-R.  EXTENSION AND EXPANSION OF NATURAL GAS  SUPPLY  THROUGH  THE
   50  CONSTRUCTION OF NATURAL GAS DISTRIBUTION FACILITIES. 1. DEFINITIONS. (A)
   51  FOR  PURPOSES  OF  THIS  SECTION,  "NATURAL GAS DISTRIBUTION FACILITIES"
   52  SHALL MEAN ANY  MAIN  LINE,  SERVICE  LINE  AND  APPURTENANT  FACILITIES
   53  CONSTRUCTED TO EXTEND EXISTING NATURAL GAS DISTRIBUTION LINE INFRASTRUC-
   54  TURE  TO  NEW  CUSTOMERS  OF  A GAS CORPORATION OR A COMBINATION GAS AND
   55  ELECTRIC CORPORATION WITH THEIR CONSENT.
       S. 4211                             3
    1    2. AFTER A PUBLIC HEARING, THE GOVERNING BODY OF A COUNTY, CITY,  TOWN
    2  OR  VILLAGE  MAY  ADOPT  A LOCAL LAW AND A SCHOOL DISTRICT, OTHER THAN A
    3  SCHOOL DISTRICT SUBJECT TO ARTICLE FIFTY-TWO OF THE EDUCATION  LAW,  MAY
    4  ADOPT  A LOCAL LAW OR RESOLUTION TO GRANT AN EXEMPTION AUTHORIZED PURSU-
    5  ANT  TO  THIS  SECTION.  A COPY OF SUCH LOCAL LAW OR RESOLUTION SHALL BE
    6  FILED WITH THE COMMISSIONER AND THE TAX ASSESSOR OF SUCH  COUNTY,  CITY,
    7  TOWN  OR  VILLAGE WHO PREPARES THE ASSESSMENT ROLL ON WHICH THE TAXES OF
    8  SUCH COUNTY, CITY, TOWN, VILLAGE OR SCHOOL DISTRICT ARE LEVIED.
    9    3. SUCH NATURAL GAS DISTRIBUTION FACILITIES SHALL  BE  EXEMPT  TO  THE
   10  EXTENT OF THE INCREASE IN THE ASSESSED VALUE THEREOF ATTRIBUTABLE TO THE
   11  CONSTRUCTION  OF SUCH NATURAL GAS DISTRIBUTION FACILITIES. THE LENGTH OF
   12  SUCH EXEMPTION AND THE PERCENTAGE  OF  ASSESSED  VALUATION  EXEMPT  FROM
   13  TAXATION  SHALL  BE SET FORTH IN SUCH LOCAL LAW OR RESOLUTION, BUT IN NO
   14  EVENT SHALL IT EXCEED TEN YEARS.
   15    4. SUCH EXEMPTION SHALL BE GRANTED ONLY  UPON  APPLICATION  BY  A  GAS
   16  CORPORATION  OR  COMBINATION  GAS AND ELECTRIC CORPORATION WITH APPROVAL
   17  FROM THE PUBLIC SERVICE CORPORATION FOR CONSTRUCTION OF SUCH NATURAL GAS
   18  DISTRIBUTION FACILITIES.
   19    S 6. The real property tax law is amended  by  adding  a  new  section
   20  485-s to read as follows:
   21    S  485-S.  EXTENSION AND EXPANSION OF NATURAL GAS DISTRIBUTION FACILI-
   22  TIES. 1. DEFINITIONS. (A) FOR PURPOSES OF  THIS  SECTION,  "NATURAL  GAS
   23  DISTRIBUTION  FACILITIES"  SHALL  MEAN  ANY  MAIN LINE, SERVICE LINE AND
   24  APPURTENANT  FACILITIES  CONSTRUCTED  TO  EXTEND  EXISTING  NATURAL  GAS
   25  DISTRIBUTION  LINE  INFRASTRUCTURE TO NEW CUSTOMERS OF A GAS CORPORATION
   26  OR A COMBINATION GAS AND ELECTRIC CORPORATION WITH THEIR CONSENT.
   27    2. (A) WITHIN A CITY HAVING A POPULATION OF ONE MILLION OR MORE, AFTER
   28  A PUBLIC HEARING, THE GOVERNING BODY OF SUCH A CITY MAY  ADOPT  A  LOCAL
   29  LAW  OR  RESOLUTION  TO  GRANT  AN EXEMPTION AUTHORIZED PURSUANT TO THIS
   30  SECTION. A COPY OF SUCH LOCAL LAW OR RESOLUTION SHALL BE FILED WITH  THE
   31  COMMISSIONER  AND THE TAX ASSESSOR OF SUCH CITY WHO PREPARES THE ASSESS-
   32  MENT ROLL ON WHICH THE TAXES OF SUCH CITY ARE LEVIED.
   33    (B) SUCH NATURAL GAS DISTRIBUTION FACILITIES SHALL BE  EXEMPT  TO  THE
   34  EXTENT OF THE INCREASE IN THE ASSESSED VALUE THEREOF ATTRIBUTABLE TO THE
   35  CONSTRUCTION  OF SUCH NATURAL GAS DISTRIBUTION FACILITIES. THE LENGTH OF
   36  SUCH EXEMPTION AND THE PERCENTAGE  OF  ASSESSED  VALUATION  EXEMPT  FROM
   37  TAXATION  SHALL  BE SET FORTH IN SUCH LOCAL LAW OR RESOLUTION, BUT IN NO
   38  EVENT SHALL IT EXCEED TEN YEARS.
   39    3. CONSTRUCTION OF NATURAL GAS DISTRIBUTION FACILITIES SHALL BE DEEMED
   40  TO HAVE COMMENCED WHEN THE AGENCY  OR  DEPARTMENT  OF  THE  CITY  HAVING
   41  JURISDICTION HAS ISSUED A PERMIT FOR CONSTRUCTION WORK AND SUCH WORK HAS
   42  BEGUN IN GOOD FAITH IN ACCORDANCE WITH SUCH PERMIT.
   43    4.  APPLICATION  FOR  EXEMPTION UNDER THIS SECTION SHALL BE FILED WITH
   44  THE ASSESSORS BETWEEN FEBRUARY FIRST AND MARCH FIFTEENTH OF THE CALENDAR
   45  YEAR  AND  BASED  ON  APPROVAL  BY  THE  PUBLIC  SERVICE  COMMISSION  OF
   46  CONSTRUCTION  OF SUCH NATURAL GAS DISTRIBUTION FACILITIES, THE ASSESSORS
   47  SHALL CERTIFY TO THE COLLECTING OFFICER THE AMOUNT OF THE EXEMPTION FROM
   48  LOCAL AND MUNICIPAL TAXES. NO SUCH APPLICATION SHALL BE ACCEPTED BY  THE
   49  ASSESSORS  UNLESS  ACCOMPANIED  BY  AN  APPROVAL FROM THE PUBLIC SERVICE
   50  COMMISSION.
   51    5. SUCH EXEMPTION SHALL BE GRANTED ONLY  UPON  APPLICATION  BY  A  GAS
   52  CORPORATION  OR  COMBINATION  GAS AND ELECTRIC CORPORATION WITH APPROVAL
   53  FROM THE PUBLIC SERVICE CORPORATION FOR CONSTRUCTION OF SUCH NATURAL GAS
   54  DISTRIBUTION FACILITIES.
   55    S 7. Section 1001 of the public authorities law is amended by adding a
   56  new undesignated paragraph to read as follows:
       S. 4211                             4
    1    IT IS FURTHER DECLARED THAT THERE ARE  SIGNIFICANT  ECONOMIC  BENEFITS
    2  FROM  THE  EXTENSION OF NATURAL GAS DISTRIBUTION LINE INFRASTRUCTURE.  A
    3  CRITICAL ELEMENT OF NATURAL GAS  DISTRIBUTION  LINE  EXTENSIONS  IS  THE
    4  FINANCING  OF THE CONSTRUCTION AND INVESTMENT NECESSARY FOR SUCH NATURAL
    5  GAS  DISTRIBUTION  LINE  EXTENSIONS. THE AUTHORITY IS AUTHORIZED TO MAKE
    6  LOANS TO GAS CORPORATIONS AND COMBINED GAS AND ELECTRIC CORPORATIONS  TO
    7  EFFECTUATE  THE  EXTENSION  OF  EXISTING  NATURAL  GAS DISTRIBUTION LINE
    8  INFRASTRUCTURE WHICH IS APPROVED BY THE PUBLIC SERVICE COMMISSION.
    9    S 8. The public authorities law is amended by  adding  a  new  section
   10  1005-b to read as follows:
   11    S  1005-B.  ADDITIONAL SPECIAL POWERS OF THE AUTHORITY WITH RESPECT TO
   12  THE EXTENSION OF NATURAL GAS DISTRIBUTION LINE INFRASTRUCTURE.  IN ORDER
   13  TO EFFECTUATE THE PURPOSES OF THIS TITLE, THE AUTHORITY SHALL  HAVE  THE
   14  FOLLOWING  ADDITIONAL SPECIAL POWERS: TO EXTEND CREDIT AND MAKE LOANS TO
   15  A GAS CORPORATION OR A COMBINED GAS AND ELECTRIC CORPORATION  FRANCHISED
   16  BY  THE  PUBLIC  SERVICE  COMMISSION  IN  CONNECTION  WITH A NATURAL GAS
   17  DISTRIBUTION LINE EXTENSION  PROJECT  APPROVED  BY  THE  PUBLIC  SERVICE
   18  COMMISSION  FOR  COSTS  INCURRED  WITH  SUCH  PROJECTS COMPLETED OR NOT,
   19  COMPLETED AT THE TIME OF SUCH CREDIT OR LOAN,  WHICH  CREDITS  OR  LOANS
   20  MAY,  BUT  NEED  NOT BE SECURED BY MORTGAGES, CONTRACTS OR OTHER INSTRU-
   21  MENTS, UPON SUCH TERMS  AND  CONDITIONS  AS  THE  CORPORATION  MAY  DEEM
   22  REASONABLE  IN CONNECTION WITH SUCH CREDITS OR LOANS. IN THE EXERCISE OF
   23  POWERS GRANTED IN THIS SECTION IN CONNECTION WITH A NATURAL GAS DISTRIB-
   24  UTION LINE EXTENSION PROJECT APPROVED BY THE PUBLIC  SERVICE  COMMISSION
   25  FOR  A  GAS  CORPORATION  OR A COMBINED GAS AND ELECTRIC CORPORATION, TO
   26  REQUIRE THE INCLUSION IN ANY CONTRACT, LOAN AGREEMENT OR  OTHER  INSTRU-
   27  MENT,  OF  SUCH  PROVISIONS  FOR  THE FINANCING OF SUCH PROJECT AND SUCH
   28  OTHER FINANCIAL AND OTHER COVENANTS APPLYING TO SUCH GAS CORPORATIONS OR
   29  A COMBINED GAS AND ELECTRIC CORPORATION, AS  THE  CORPORATION  MAY  DEEM
   30  NECESSARY  OR  DESIRABLE AND TO DO ALL THINGS AND TO EXECUTE ALL INSTRU-
   31  MENTS NECESSARY AND DESIRABLE IN  CONNECTION  THEREWITH.  IN  CONNECTION
   32  WITH THE EXTENSION OF ANY SUCH CREDIT OR LOAN, THE AUTHORITY MAY FIX AND
   33  COLLECT  SUCH  FEES AND CHARGES, INCLUDING BUT NOT LIMITED TO REIMBURSE-
   34  MENT OF ALL COSTS OF FINANCING BY THE CORPORATION AS  SHALL  BE  REASON-
   35  ABLE.  IN  CONNECTION  WITH SUCH EXTENSION OF CREDIT OR LOAN AS PROVIDED
   36  FOR HEREIN SUCH GAS CORPORATION OR A COMBINED GAS  AND  ELECTRIC  CORPO-
   37  RATION SHALL SUBMIT TO THE AUTHORITY AN APPLICATION FOR THE EXTENSION OF
   38  CREDIT  OR  LOAN AS SET FORTH IN THE APPLICATION. THE AUTHORITY MAY DENY
   39  ANY SUCH APPLICATION FOR ANY REASON IT DEEMS IN THE PUBLIC INTEREST. THE
   40  EXTENSION OF ANY SUCH CREDIT OR LOAN  IS  SUBJECT  TO  APPROVAL  BY  THE
   41  PUBLIC  SERVICE  COMMISSION  OF THE PROJECT OR PROJECTS FOR SUCH NATURAL
   42  GAS DISTRIBUTION LINE EXTENSION.
   43    S 9. Subdivision 1 of section 1010 of the public authorities  law,  as
   44  amended  by  chapter  972  of  the  laws  of 1969, is amended to read as
   45  follows:
   46    1. The authority shall have power and is hereby authorized  from  time
   47  to  time  to  issue  its  negotiable bonds in conformity with applicable
   48  provisions of the uniform commercial code for the purpose  of  financing
   49  any  project  authorized by this title, including the acquisition of any
   50  real or personal property or facilities deemed necessary by the authori-
   51  ty, AND FOR THE MAKING OF LOANS TO A GAS CORPORATION  OR  A  COMBINATION
   52  GAS AND ELECTRIC CORPORATION FRANCHISED BY THE PUBLIC SERVICE COMMISSION
   53  FOR THE PURPOSES OF SECTION ONE THOUSAND FIVE-B OF THIS TITLE.
   54    S 10. This act shall take effect immediately.