Home > ADVOCACY > Where We Stand > Support for "Proceeds"

June 8, 2010

SUPPORT FOR

A.8712-A (Gabryszak)

There are 695 MW of hydropower designated for use within 30 miles of the Niagara Power Project in Lewiston, NY,  commonly referred to as Replacement and Expansion Power .  The majority of that is currently used by local employers in the region in the operation of their facilities and production of their products.  When that power is not being utilized – when a plant is not drawing on its full allocation, or when a company has received a block of power but is not yet up and running, or when power remains unallocated – the New York Power Authority sells it on the open market and retains the proceeds.

A.8712-a would change that through creation of the Western New York Economic Development Fund. Unused power would still be sold, but the proceeds would go into the fund for local use tied to the “within the 30 mile radius” core criteria.

The Buffalo Niagara Partnership has long-advocated for keeping hydropower proceeds within a 30 mile radius of Niagara Falls – and we haven’t been alone. This is an issue that has broad regional support and has aligned elected officials, business leaders, labor leaders, the Buffalo News editorial page, economic development professionals and other community stakeholders.

The local fund would be used for projects to spur economic development and job creation, such as site preparation and infrastructure improvements, brownfield cleanups, adaptive reuse of existing structures and to entice private sector investments in Buffalo Niagara. The Western New York Advisory Group – an existing body of local economic development agencies that make power allocation recommendations to NYPA – would solicit and review applications for grants from the fund.  Eligible applicants include public, private and not-for-profit entities located within a 30 mile radius of the Niagara Power Project.

Applications would be evaluated based upon criteria such as: jobs created or retained by the project, the types of jobs created (as measured by wage and benefit levels), average annual payroll, capital investment and use of New York State suppliers; the applicant’s commitment to retain/create jobs; the project’s ability to induce commercial activity on a site and revitalize an urban area.

The fund would create a real, tangible difference in our community -- whether to bring new employers and their jobs to our region, or to clean up abandoned sites, build infrastructure needed to make sites more attractive for investment, or to adapt existing structures for new uses – all of which can spur more job creation and investment in our region.

Aligning the process of allocating proceeds from unused power allocations and/or the power directly, ensures that this key asset is fully maximized within 30 miles of the Niagara Power Project, as the original legislation intended.

Hydropower designated for use within the Buffalo Niagara region must stay in this region -- that means the power itself, and the proceeds derived from the sale of that power.