Energy Legislative Update, Article X, Next meeting

    The Governor has acted on a variety of bills that have an impact on the Energy industry. Below is a short list of bills that have been acted on already - or will be over the next 30 days.
    Also included is a summation of Senator James Wright's bill to extend Article X of the Public Service Law. That bill passed only the Senate in December.

    Petroleum Retail Divorcement. Senate reprint 21000, originally S. 5618-A (LaValle) / A. 6942-D. Places geographic limitations on the operation of retail service stations of a franchisor of certain refiners or producers without prior consent of such franchised dealers. Also known as retail divorcement. Three year sunset. Passed the Senate on June 20, amended on third reading to concur with Senate amendments and re-passed Assembly on June 25. The Business Council had issued a memo in opposition. The Business Council urged a gubernatorial veto. The bill was vetoed on December 20, 2002. It was veto #32.

    "The Energy Consumer Protection Act of 2002". S.6778-B (Wright) / A,9878-B (Tonko). Places ESCOs under HEFPA. Allows ESCOs to tell IOUs to terminate services under certain conditions for for certain customers. Signed by the Governor on December 20, 2002 as Chapter 686 of the Laws of 2002.

    "Motor Fuel Marketing Practices Act". Also know as below cost sales. S. 4522-B (Nozzolio) / A. 1626-C (Tonko). Establishes a retail sales system under which the sale of petroleum fuels are regulated along with a correlating penalty system. Three year sunset. Passed Senate on June 20; passed Assembly on June 25. It was delivered to the Governor on December 30, 2002.

    "The New York State Rail Infrastructure Investment Act of 2002".
    S. 7602 (Stafford) / A. 11680 (Tokasz).The package was a top priority of The Business Council, the state's railroad and the manufacturing/industrial/energy sectors that depend on rail for service, commodity delivery (such as coal) and transportation. It was passed in the Senate on June 20 and the Assembly on June 25. It was sent to the Governor on December 30, 2002.

    NOTE: According to Article IV, Section 7 of the State Constitution; "No bill shall become a law after the final adjournment of the legislature, unless approved by the governor within thirty days after such adjournment."


    Article X Extension. S. 7597 (Wright). Senate Article X extender; no Assembly companion. A clear extender of Article X for 5 years. Extends from January 1, 2003 until July 1, 2011, the expiration of article 6 of the energy law providing for state energy planning; extends from January 1, 2003 until July 1, 2007, the expiration of article 10 of the public service law providing for the siting of major electric generating facilities and related provisions of law. Passed Senate on December 17, 2002; Referred to Assembly Energy. Without passage by of an agreed upon bill by both House or the passage of extension legislation by Assembly (S.7597), the State's "Siting Law" effectively ends December 31, 2002 (tonight at midnight). However, all of the projects already in the application phase will be governed by the Article X law.

    The latest New York Article X Case

    TransGas Energy Systems, LLC filed its application for an 1100 Megawatt, natural gas-fired, combined cycle plant in Greenpoint, Williamsburg, Brooklyn on December 24, 2002. This project will be governed by the Article X process since it was filed prior to the expiration of the law.