Sponsorship

A.8940 - TONKO, SILVER, GIANARIS, abbate, alessi, alfano, arroyo, aubertine, boyland, boyle, bradley, brennan, brook-krasny, cahill, cook, cusick, delmonte, destito, diaz r, eddington, englebright, espaillat, farrell, fields, gabryszak, galef, gantt, gordon t, greene, gunther, hevesi, hyer-spencer, john, koon, lavine, lupardo, magee, magnarelli, maisel, mceneny, millman, nolan, o`donnell, peralta, pheffer, ramos, reilly, rivera p, rosenthal, scarborough, schimel, stirpe, sweeney, titone, weinstein

Memorandum in Support

BILL NUMBER:A8940

TITLE OF BILL: An act to amend the energy law, the executive law, the environmental conservation law, the general business law, the private housing finance law and the public authorities law, in relation to ener- gy planning and to establishing the state energy office and transferring the functions, powers and duties of the New York state energy research and development authority to such office; and to repeal certain provisions of the energy law, the executive law and the public authori- ties law relating to the New York state energy research and development authority (part A); to amend the public authorities law, in relation to reporting of state energy authorities (part B); to amend the public authorities law, in relation to creating election districts for election of trustees of the Long Island Power Authority; and to amend the public service law and the public authorities law, in relation to the implemen- tation of proposed rate increases by the Long Island power authority and/or its subsidiaries (part C); to amend the energy law, the public authorities law and the public service law, in relation to facilities of refuge; and to amend the public service law and the public authorities law, in relation to net energy metering for solar, wind, fuel cell and farm waste electric generating systems; and to repeal section 66-l of the public service law relating to net energy metering for residential and/or farm service wind electric generating systems (part D); to amend the public authorities law, in relation to the powers of the power authority of the state of New York regarding energy conservation; in relation to requiring the power authority of the state of New York and the Long Island power authority to establish clean energy initiatives; to amend the public service law and the public authorities law, in relation to providing for the development of clean energy technologies; to amend the energy law, in relation to enacting the state green build- ing construction act; to amend the New York state urban development corporation act, in relation to creating the dairy farm improved energy efficiency program (part E); to amend the energy law, in relation to the creation of a consumer appliance efficiency advisory panel (part F); to amend the public service law, in relation to intervenor funds for proceedings relating to siting of major utility transmission facilities; in relation to requiring annual reviews of multi-year rate plans; in relation to penalties for the failure of gas and electric corporations to file or correct an annual report; and in relation to electric utility emergency plans; to amend the state finance law, in relation to interve- nor accounts (part G); to amend the economic development law, the public authorities law, chapter 316 of the laws of 1997 amending the public authorities law and other laws relating to the provision of low cost power to foster statewide economic development, the tax law and chapter 645 of the laws of 2006 amending the economic development law and other laws relating to reauthorizing the New York power authority to make contributions to the general fund, in relation to reauthorizing the New York power authority to make contributions to the general fund and authorize the continuation of New York power authority economic develop- ment programs, including the power for jobs and energy cost savings benefit programs (part H); to amend the environmental conservation law, in relation to establishing the climate change solutions program act and

creating the New York state climate change task force; and to amend the state finance law, in relation to establishing the climate change solutions fund (part I)

PURPOSE OR GENERAL IDEA OF BILL: This bill will combat high energy prices and develop the State`s most cost-effective energy resources in environmentally friendly ways.

SUMMARY OF SPECIFIC PROVISIONS:

Part A of this bill would re-establish the State Energy Office to coor- dinate energy program implementation among state agencies and appropri- ate state authorities; examine the impacts of market deregulation and competition on consumer prices; and review the impact of federal govern- ment policies, programs and administrative decision-making on New York energy policies and prices. Also Part A would reauthorize Article 6 of the Energy Law to create a statewide energy plan.

Part B of this bill would require the Power Authority of the State of New York and the Long Island Power Authority to submit annual reports detailing the energy purchasing practices and their commodity pricing practice.

Part C of this bill would initiate certain reforms at the Long Island Power Authority (LIP A), first by re-creating an elected Board of Trus- tees, with the Chair appointed by the Governor. Also it would require the LIP A Board to obtain assistance from the PSC regarding LIPA`s oper- ations, costs, plans and rate structures, as well as creating a separate maintenance and infrastructure plan.

Part D of this bill would establish in every county Facilities of Refuge, shelters with stand-alone heat and electricity generation in municipal and school facilities to provide refuges during natural and man-made disasters. Also this bill would expand net metering opportu- nities to all customer classes, increase the eligible capacity to 2MW and expand the allowable generation equipment to include solar, wind, fuel cells, and farm waste-to-energy technology.

Part E of this bill would create programs at appropriate state authori- ties to adequately fund energy efficiency programs in a cost-effective and accountable manner. In particular, it would expand support for low- income weatherization and make a multi-year programmatic commitment at higher funding levels. Also, this bill would establish "Green Building" energy efficient standards for state buildings as well as provide finan- cial assistance to dairy farmers to install energy efficient measures.

Part F of this bill would create advisory panels on the State Building Code and appliance efficiency standards.

Part G of this bill would require the Public Service Commission to review multi-year electric utility rate plans on an annual basis, impose fines on utilities that fail to file their required annual reports on

time and establish standards and reporting practices for utility emer- gency response plans.

Part H of this bill would extend the Power for Jobs program for three years until, June 30, 2010 and require job commitments, energy audits and energy efficiency investments

Part I of this bill would create an interagency Climate Change Task Force within the Department of Environmental Conservation, establish a Greenhouse Gas Emissions Reduction Program within DEC, and provide for the deposit of revenues raised from the auction of any emissions allow- ances by the Commissioner of the Department of Environmental Conserva- tion (DEC) into the Climate Change Solutions Fund.

JUSTIFICATION: Starting with the elimination of the State Energy Office 12 years ago, New York`s energy policy has drifted with little coordi- nation among the State`s energy agencies and no comprehensive plan. More alarming, New Yorker`s face among the highest energy prices in the coun- try draining jobs from the upstate economy and money from the wallets of working families.

This energy plan would establish a much-needed and long-overdue compre- hensive energy policy aimed at securing a reliable source of clean, safe and affordable energy for New York State. This initiative would reduce electricity prices for the state`s residential and commercial customers who currently face some of the highest energy rates in the nation that drain jobs from our Upstate economy and money from the wallets of work- ing families. This proposal addresses the full-range of issues necessary to ensure our state has a smart, forward-looking, growth generating energy policy

After 12 years of failed energy policy, the reliability of the electric system has been placed in jeopardy, last summers` Long Island City Blackout being the most egregious example of this. A comprehensive ener- gy plan is needed to provide relief to energy consumers, help the state respond to the global warming crisis, invest in energy efficiency, and lower the cost of doing business in New York.

PRIOR LEGISLATIVE HISTORY: New bill.

FISCAL IMPLICATIONS: To Be Determined.

EFFECTIVE DATE: This legislation would be effective immediately upon being signed into law.

Sponsorship

A.5494 - WEPRIN, MILLMAN, CHRISTENSEN, SCHROEDER, KOON, CANESTRARI, BENEDETTO, LUPARDO DESTITO, TITUS, GORDON T, STIRPE, COLTON, ALESSI, abbate, alfano, arroyo, barra, benjamin, brennan, cahill, delmonte, diaz r, galef, gordon d, gunther, jacobs, john, kolb, lafayette, latimer, magee, markey, mayersohn, mceneny, morelle, nolan, paulin, perry, pheffer, rivera j, robinson, rosenthal, schimminger, sweeney, weisenberg, / - 2

Memorandum in Support

BILL NUMBER: A5494A

TITLE OF BILL : An act to amend the New York state urban development corporation act, in relation to creating the small business energy loan program

PURPOSE OR GENERAL IDEA OF BILL : A loan program would be established to expand on existing programs operated by the New York State Energy Research Development Authority to make energy audits and energy efficient technology implementation more readily available to small businesses in economically distressed areas. This program would be structured according to the existing NYSERDA low-interest loan program, whereby small commercial businesses are eligible to have certified energy audit specialists conduct energy audits of the business and make recommendations for energy efficient activities, upgrades and technology installations. If the business chooses the energy efficient activities and technologies recommended by the audit, the customer could access a low-interest loan fund to reduce the cost of installing such measures.

SUMMARY OF SPECIFIC PROVISIONS : This bill would establish a small business energy loan fund to provide zero or low interest loans up to one hundred thousand dollars and loan interest rate reductions to small businesses in economically distressed areas for energy efficiency projects and advanced energy technologies. In order to be eligible to participate in this loan program, small businesses in economically distressed areas must have an energy audit provided through the NYSERDA`s energy audit program that helps small businesses make informed electrical energy decisions and implement energy efficiency strategies

JUSTIFICATION : The state`s chronically high energy costs are often cited by businesses as a key factor for why New York-based businesses and New York-made products are not competitive in national and global markets. The state`s economic expansion is tied to the growth and development of small businesses. By reducing a primary cost component in a rapidly growing sector of the state`s economy, those businesses are rendered more competitive, and thus help to better secure New York based jobs.

PRIOR LEGISLATIVE HISTORY : 2005-2006: A8352

FISCAL IMPLICATIONS : Subject to appropriations.

EFFECTIVE DATE : Upon enactment of the bill into law.

Sponsorship

A.10526 - PARMENT, SWEENEY, MAGEE, crouch, farrell

Memorandum in Support

BILL NUMBER:A10526A

TITLE OF BILL: An act to amend the environmental conservation law, in relation to statewide spacing for oil and gas wells

PURPOSE OF THE BILL:

The purpose of this bill is to amend Article 23 of the Environmental Conservation Law (ECL), the State`s Oil, Gas and Solution Mining Law ("Oil and Gas Law") to provide statewide spacing for oil wells and horizontal wells, and to make other technical corrections to the statewide spacing provisions.

SUMMARY OF PROVISIONS:

Section 1 of this bill amends ECL S23-0501(1)(b)(1) to apply its provisions to oil as well as gas wells, and to make other amendments including:

* providing statewide spacing for horizontal gas wells and shale gas wells, and reducing the required setback from 660 feet to 460 feet for certain spacing units.

* providing statewide spacing for oil wells, including horizontal wells, in the Bass Island, Trenton and Black River oil pools and the Onondaga reef and other oil-bearing reefs.

* providing statewide spacing for all other oil pools.

* requiring that a spacing unit established for an oil pool be modified prior to production if the well in the unit produces natural gas but not oil.

Section 2 of this bill amends ECL S23-0503(4) to provide that infill wells are necessary in certain spacing units and must be drilled within three years.

Section 3 of this bill amends ECL S23-0503(6) to clarify that spacing units established pursuant to statewide spacing provisions are binding upon all per sons and their successors and assigns, and may be modified by the Department of Environmental Conservation (DEC) upon good cause shown, and to state that failure to drill infill wells in certain spacing units constitutes good cause for DEC to initiate a modification of the spacing unit

Section 4 of this bill contains an enactment clause.

EXISTING LAW:

ECL S23-0501(1)(b)(1) currently establishes statewide spacing for gas pools but not oil pools, and there are no provisions which directly address horizontal drilling. ECL S23-0503 provides that the DEC may approve infill wells and that spacing orders are binding upon all persons and may be modified by the DEC upon good cause shown.

ECL S23-0503(2) provides that DEC shall issue a permit if the proposed spacing unit conforms to statewide spacing and is of approximately uniform shape with other spacing units within the same field or pool, and abuts other spacing units in the same pool, unless sufficient distance remains between units for another unit to be developed.

PRIOR LEGISLATIVE HISTORY:

This is a new proposal.

STATEMENT IN SUPPORT:

The existing Oil and Gas Law provides for regulation of oil and gas wells and similar wells in New York State. One provision of the law dealt with how wells are spaced from each other, to ensure efficient and economic recovery of oil and gas resources while protecting the correlative rights of mineral resource owners (i.e., ownership rights, usually of the surface owners). The law establishes standard, statewide spacing for wells, which varies according to the target geologic formation and depth, and provides flexibility for spacing units of plus or minus ten percent to account for site-specific circumstances that may require movement of surface location. Setback distances are also established for spacing units to help ensure that wells do not drain oil and gas from under adjacent spacing units.

Chapter 386 of the Laws of 2005 amended the Oil and Gas Law., That Chapter established the current statewide spacing provisions for gas but did not address oil wells or horizontal wells or make provision for adjusting the required 660-foot setback when a spacing unit is smaller than 40 acres by the authorized 10-percent tolerance. Horizontal wells are being used increasingly in New York; these are wells that are drilled vertically to a point above the target formation, then drilled at an angle to reach the target formation and subsequently drilled horizontally across the formation to provide more efficient recovery of the resource., Horizontal drilling requires that unit sizes be expanded to accommodate the length of the wellbore.

This bill, therefore, amends Title 5 of the Oil and Gas Law to expand the definition of statewide spacing to: (1) address oil wells and horizontal wells; (2) provide a 330-foot setback for horizontal shale wells; (3) decrease the setback from 660 feet to 460 feet for vertical shale wells and smaller units in other pools; and (4) make other technical corrections. Absent this legislation, oil wells in new fields must be drilled on 40 acres, which would not always foster

efficient resource recovery, The DEC projects a significant increase in the number of horizontal wells to be proposed, especially to target shale formations, which is not contemplated by the existing statute.

The vast majority of proposals that are expected for oil wells and horizontal wells would not conform to current statewide spacing sizes, and would therefore require notice, public comment and possibly a hearing on an individual well basis. With hundreds of such wells likely to be proposed in the near future, the potential burden on the DEC and the industry would be substantial, with no commensurate benefit in ensuring that the policy objectives of ECL S23-0301 are met.

In addition, this bill creates three categories of shale unit development: (1) vertical wells (40 acres with 460-foot setbacks); (2) single-well horizontal units (40 acres plus acreage necessary to maintain a 330foot setback); and (3) multi-well horizontal units (up to 640 acres with 330-foot setbacks, allowing operators with smaller acreage positions to develop smaller units). The provision for multi-well shale units allows operators to drill several wells from a centralized location, reducing the extent of surface environmental disturbance. Infill drilling necessary to fully develop the acreage is required in multi-well units, and failure to drill infill wells would be good cause for DEC to initiate a unit modification.

The geological characteristics of shale are such that distinct lateral pools and spacing units separated by excluded acreage are not likely. Nevertheless, DEC staff will continue to review every unit proposed to conform to statewide spacing to ensure that it is uniformly shaped with other units in the pool or field and abuts other: units in the same pool unless sufficient distance remains for another: uniformly shaped unit to be formed This prevents well operators from leaving "stranded" undrillable acreage between units in a common pool or from configuring units based on lease position.

Proposals which do not meet this criteria but which DEC staff determine may meet the policy objectives of the statute are subject to the public review process set forth in ECL S23-0503(3). This ensures that affected owners are aware that a non-abutting or non-uniformly shaped unit has been proposed and have the opportunity to be heard. The stated unit sizes will only be expanded if the length of the proposed horizontal wellbore is such that the minimum required setback cannot be met within the specified number of acres.

At the time of permitting when the spacing unit is set, only the acreage necessary and sufficient to maintain minimum setbacks for the entire length of the wellbore in the target formation and at both ends of the wellbore in the target formation will be allowed Thus, the bill provides protection to ensure that both the single-well and multi-well horizontal units are regularly shaped and will not create "islands" of undrillable acreage.

By accommodating smaller oil field spacing and the length of horizontal wellbores but requiring protective setbacks, and when appropriate, the drilling of infill wells, this bill furthers the policy objectives of preventing waste of the State`s oil and gas resources and development of oil and gas properties in a manner that results in a greater ultimate recovery, while protecting the rights of mineral rights owners and the general public.

BUDGET IMPLICATIONS:

None.

EFFECTIVE DATE:

This bill takes effect upon enactment

Sponsorship

A.5059 - PARMENT / S.2424 - Not available at this time.

Memorandum in Support

BILL NUMBER: A5059

TITLE OF BILL : An act to amend the general municipal law and the tax law, in relation to making municipal clean energy research and development enterprises eligible for the qualified empire zone enterprise tax credit

PURPOSE OR GENERAL IDEA OF BILL :

This legislation makes municipal clean energy research and development enterprises eligible for the qualified empire zone enterprise tax credit.

SUMMARY OF SPECIFIC PROVISIONS :

The General Municipal Law and Tax Law are amended to allow municipal clean energy research and development enterprises eligible for the qualified empire zone enterprise tax credit.

JUSTIFICATION :

The availability of low-cost, dependable power is the most important factor to sustaining and growing business and industry in New York. Enterprises which are optimally situated to successfully fulfill this critical need should not be prevented from benefiting from this incentive just because they are a municipal entity. Every effort should be made to promote fuel diversity, provide low-cost, reliable power and secure business development in New York State. This expansion of the qualified empire zone enterprise tax credit would accomplish this with an immediate return in job creation, business and industry recruitment and retention and regional economic development.

PRIOR LEGISLATIVE HISTORY : Formerly A-11832 of 2006, passed Assembly and Senate, Vetoed by Governor.

FISCAL IMPLICATIONS : The fiscal implications are to be determined.

EFFECTIVE DATE : This act shall take effective immediately.

Sponsorship

A.9073 - MORELLE, LANCMAN, HOYT, LIFTON, GUNTHER, SCOZZAFAVA, KOON, KOLB, STIRPE, CAHILL, LOPEZ P, benjamin, delmonte, destito, lupardo, magee, spano

Memorandum in Support

BILL NUMBER:A9073B

TITLE OF BILL: An act to amend the general business law, in relation to the sale of unbranded motor fuel

PURPOSE: To allow gasoline retailers and distributors to purchase and sell unbranded motor fuel in addition to the brand of motor fuel supplied under the terms of a franchise with a refiner.

SUMMARY OF PROVISIONS: This bill amends the General Business Law to invalidate any provision of a franchise with a refiner that would prohibit a dealer or distributor from selling or purchasing unbranded motor fuel.

JUSTIFICATION: This bill would permit service station dealers who own their retail locations and distributors who supply such locations to sell unbranded motor fuel.

Motor fuel franchise agreements typically include provisions which permit a service station dealer or a distributor to use a particular identifying symbol or a trade name owned or controlled by a refiner. In exchange for that right the dealer or distributor must purchase and sell motor fuel supplied soley by that refiner. Dealers are usually expressly prohibited under such agreements from selling motor fuel from another source including unbranded motor fuels. Distributors are likewise prohibited from supplying unbranded motor fuel to franchised dealers.

This situation limits the availability of unbranded motor fuel to New York`s drivers at a time when motor fuel prices are escalating. Unbranded motor fuel often sells at a lower price than branded motor fuel, The availability of unbranded motor fuel would result in addi- tional competition in the market place, and availability of unbranded motor fuel would help to open up competition.

EXISTING LAW: Section 199-j renders null and void any franchise provision which requires a dealer to purchase or sell products of the distributor other than motor fuel. It also renders null and void any provision of a motor fuel agreement which prohibits a dealer from purchasing or selling alternative motor fuel.

LEGISLATIVE HISTORY: 2007: S.6151/ A.9073 - referred to rules/ referred to econ develop.

FISCAL IMPLICATIONS: None

EFFECTIVE DATE: Immediately.