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FOR IMMEDIATE RELEASE:
June 30, 2011                                                                                       

PARTNERSHIP DISAPPOINTED “PROCEEDS” LEGISLATION FAILS TO PASS ASSEMBLY

(BUFFALO) – When the State Legislature wrapped up the last week of its 2011 session, many excellent pieces of legislation had passed.  However, one bill which would have guaranteed millions of dollars of economic development funds be invested in Buffalo Niagara, at no additional cost to taxpayers, had failed to pass the State Assembly.

Buffalo Niagara Partnership President and CEO Andrew J. Rudnick expressed his disappointment in the New York State Assembly to pass Senator George Maziarz and Assemblymember Dennis Gabryszak’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.

“As session approached its close, the NYS Senate passed this legislation and made it a high priority for final approval by the Legislature.  The Assembly simply did not follow suit,” said Rudnick.  “This bill would have finally guaranteed 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.” 

While the legislative session has finished for this year, the Partnership remains optimistic that this bill can be addressed during a special session, perhaps this fall, or in the early part of 2012.  “Be assured, the Buffalo Niagara region will not be satisfied until this bill is passed and the proceeds from the sale of unused hydro-power stay in our area and help create jobs.  In the interim we will work to assure that all proceeds funds are retained for future use by Buffalo Niagara industries,” said Rudnick.

Rudnick continued, “We also hope to work with the Cuomo administration in the coming months. We believe Governor Cuomo supports the main purposes of the proposal; to keep the proceeds from the sale of economic development power in western New York, to dedicate these funds to economic development purposes and to transfer decision making from the Power Authority to locally based economic development experts.” 

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.

Rudnick further explained, “Since the original “Proceeds” legislation was signed into law in August 2010, the Buffalo Niagara region has been anxiously awaiting its economic impact.  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 eleven months ago.  As a result of NYPA’s stonewalling, economic development investments have been held back.  This legislation would allow these funds to be 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.