[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3366 Introduced in House (IH)]
109th CONGRESS
1st Session
H. R. 3366
To amend the Niagara Redevelopment Act to encourage economic
development and recovery in western New York, to promote fiscal
transparency, to enhance the safety and security of the Niagara Power
Project, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 20, 2005
Mr. Higgins introduced the following bill; which was referred to the
Committee on Energy and Commerce
_______________________________________________________________________
A BILL
To amend the Niagara Redevelopment Act to encourage economic
development and recovery in western New York, to promote fiscal
transparency, to enhance the safety and security of the Niagara Power
Project, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Western New York Redevelopment Act
of 2005''.
SEC. 2. RENEW REPLACEMENT POWER.
Section 1 of the Act of August 21, 1957 (Public Law 85-859; 71
Stat. 401; 16 U.S.C. 836) is amended in subsection (b)(3) by striking
out ``for a period ending not later than the final maturity date of the
bonds initially issued to finance the project work herein specifically
authorized,''.
SEC. 3. ECONOMIC RECOVERY.
(a) License Conditions.--The Federal Energy Regulatory Commission
(FERC) shall include among the conditions imposed on any license issued
subsequent to the original license for the project authorized by
section 1 of the Act of August 21, 1957 (Public Law 85-859; 71 Stat.
401; 16 U.S.C. 836) in addition to those deemed necessary and required
under the terms of the Federal Power Act, the following:
(1) Annual payment.--(A) In order to render financial
assistance to the host governments in which any feature of the
Niagara Power Project is located, the New York Power Authority
(NYPA) shall make a mandatory annual payment from its gross
proceeds to the Erie Canal Harbor Development Corporation in
the City of Buffalo and the County of Erie in the amount of
$10,000,000 for each 12-month period of the new license. For
every 12-month period after the first such period after the
license is issued and continuing for the life of the new
license and any subsequent licenses, the annual payment shall
include an additional 3 percent of the amount of the payment
made during the preceding 12-month period.
(B) Prior to the establishment of the Erie Canal Harbor
Development Corporation, the payment described in subparagraph
(A) shall be held in escrow by the NYPA for transfer to the
corporation upon its establishment. Such payment shall be used
by the Erie Canal Harbor Development Corporation only for the
development, design, engineering and construction of projects
at the Inner and Outer Harbor in Buffalo, and Erie County, New
York, including transportation infrastructure improvements and
Skyway Bridge alternatives. Other qualified uses may include
brownfield remediation, greenway trail design and construction
and other waterfront environmental restoration projects.
(C) At the expiration of the Erie Canal Harbor Development
Corporation the annual payments shall be made to the Erie
County Industrial Development Agency for the uses and purposes
set forth in subparagraph (B).
(2) Additional annual payment to counties.--(A) In order to
achieve the yet unrealized regional economic benefits that the
New York Power Authority contracted to deliver on when it was
awarded exclusive control of the Niagara Power Project, the
Federal Energy Regulatory Commission shall include as a
condition on any new and subsequent license, the payment of 1
percent of gross proceeds to be split evenly by the Industrial
Development Agencies for each of the counties of Niagara, Erie,
Chautauqua, and Cattaraugus, New York.
(B) Such funds shall be distributed by such agencies to
high-load industries and businesses committed to incremental
capital investment and job retention and creation in each such
county. The proceeds shall be disbursed to such western New
York industries and businesses and used by such industries and
businesses to offset the high cost of energy in New York State
and retain current employment levels.
(C) The payment of funds under this paragraph to Erie,
Chautauqua, Cattaraugus, and Niagara counties shall be
additional to, and shall not affect the obligation of the New
York Power Authority to pay, any other funds to those counties
under the terms of any judicial decree or settlement of an
action brought by one or more of such counties against the
NYPA.
(D) The term ``gross proceeds'', as used in this paragraph,
means the total gross proceeds derived by the licensee from the
sale of power for the preceding fiscal year, excluding power
used by the Corporation or sold or delivered to any other
department or agency of the State of New York for any purpose
other than resale.
SEC. 4. TRANSPARENCY.
The Secretary of Energy, acting through the Office of Inspector
General, Office of Audit Services, shall conduct an audit of Niagara
Power Project finances and operations since project inception in order
to provide consistent and timely information concerning the true
economic impact of the Niagara Power Project and its revenue and
disbursements and shall conduct subsequent annual audits to verify
payments to host communities and others.
SEC. 5. PHYSICAL SECURITY AND SAFETY.
(a) In General.--In order to improve the physical security of the
Niagara Power Project, the Federal Energy Regulatory Commission shall
include among the conditions imposed on any license issued subsequent
to the original license for the project authorized by section 1 of the
Act of August 21, 1957 (Public Law 85-859; 71 Stat. 401; 16 U.S.C. 836)
in addition to those deemed necessary and required under the terms of
the Federal Power Act, a requirement that the licensee shall acquire by
contract or other agreement property or interests therein sufficient to
provide an appropriate effective zone of separation between all project
control, switching or generating facilities and any privately owned
real property not used for the generation, transmission, or control of
electric energy. Any such acquisition by the licensee shall be carried
out pursuant to such terms as may be necessary to ensure replacement of
any residential, educational, recreational, and community services and
facilities acquired or adversely affected by such acquisition, and that
such replacement facilities or services are of equivalent character,
value, and number to those so acquired, while meeting contemporary
standards for construction, operation, and level of service.
(b) Resources for First Responders.--The New York Power Authority
shall provide to First Responders serving the local jurisdictions in
which the Niagara Power Project facilities are located adequate
financial and other resources and assistance to acquire, operate,
maintain, and replace, through the term of any license granted pursuant
to this Act, the equipment and other assets needed to protect human
life and property from harm should any feature or facility of the
Niagara Power Project be subject to damage of any type because of an
act of terror or other criminal behavior.
SEC. 6. HOLD HARMLESS.
Nothing in this Act authorizes any increase in the rates and
charges for electric energy under the Replacement Power program.
SEC. 7. SEVERABILITY.
If any provision of this Act, or amendment made by this Act, or the
application of this Act or such amendments to any person or
circumstance is determined by a court to be invalid, the validity of
the remainder of this Act and the amendments made by this Act and the
application of such provision to other persons and circumstances shall
not be affected by such determination.
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