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FOR IMMEDIATE RELEASE:
June 15, 2011                                                                                   

PARTNERSHIP CALLS FOR “PROCEEDS” LEGISLATION PASSAGE

(BUFFALO) - With the State Legislature quickly approaching the last week of its 2011 session, Buffalo Niagara Partnership President and CEO Andrew J. Rudnick is calling on the New York State Legislature to pass Assemblymember Dennis Gabryszak and Senator George Maziarz’s “Hydro-Power Proceeds” legislation.  This bill more powerfully directs the New York Power Authority (NYPA) to carry out the laws mandated in last year’s “Proceeds” legislation and makes some minor technical amendments to what was overwhelmingly approved by the Legislature in 2010.

“Currently, the NYS Senate is poised to pass this legislation.  It is imperative that the Assembly follow suit,” said Rudnick.  “Passage will finally guarantee that the benefits of Niagara Falls hydro-power are retained in the Buffalo Niagara region, even if some of the power is temporarily sold elsewhere.” 

Rudnick noted that last year’s “Proceeds” legislation passed overwhelmingly in both the Senate and Assembly, including Speaker Silver voting in the affirmative.  “Since the original “Proceeds” legislation was signed into law in August 2010, the Buffalo Niagara region has been anxiously awaiting its economic impact.  This legislation will allow that impact to come to overdue fruition,” he said.

This year’s bill and the law from last year both require that any “net proceeds” from the sale of otherwise unused local hydropower must be used for economic development purposes  within a 30 mile radius of the Lewiston Power Plant, which is the same locale where this economic development hydropower is to be used.  Currently the temporarily unused power is sold into the state-wide power grid where NYPA can maximize its returns.  The new law would return the financial benefits from the sale of hydropower to the region, even if some power is temporarily sold elsewhere.

“This new legislation also corrects some technical imperfections in last year’s law, transfers administrative oversight of the program from NYPA to the Empire State Development Corporation and more forcefully directs NYPA to cooperate with all information requests, and to transfer the net proceeds to a new account jointly held by the Empire State Development Corporation and the State Comptroller.” Rudnick added.  Funding allocations would be made after application upon the recommendation of a local advisory group that is composed of economic development officials from Erie and Niagara counties.

Rudnick further explained, “The pot of money from the sale of unused hydropower is thought to be in the millions.  However, NYPA has been unwilling to provide any information about the size of the fund or sale of unused power, even though the law became effective almost ten months ago.  As a result of NYPA’s stonewalling, the advisory group has been unable to move forward and economic development efforts have been held back.  This legislation would allow these funds to be used for economic development in the Buffalo Niagara region under local control using the expertise and guidance of Empire State Development.”

The legislation also will include oversight on proceeds funded expenditures and requires that the newly created advisory group follow sunshine laws when making allocation decisions – something that falls in line with Governor Cuomo’s recently unveiled ethics package.  These additions address the lack of oversight and exposure that are severely lacking in NYPA’s current processes.

“I regret that this bill has become necessary” said Rudnick, “but the refusal of the Power Authority to meet with the Advisory Group that is established in law, to provide required information to the Advisory Group or to the bill’s sponsors, or to carry out the clear mandates of the law has left us with no other choice.”  

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ABOUT THE BUFFALO NIAGARA PARTNERSHIP

The Buffalo Niagara Partnership includes nearly 2,500 employer members, working for improved business competitiveness and expanded economic activity in the region.  The Partnership advocates, locally, and in Albany, and Washington, D.C., for policies and resources to increase private sector investment and jobs. The Partnership also offers programs and services to its members to increase their chances for business success.