Plugged In @ Hinman Straub – November 15, 2019

What’s Inside

  • Governor Issues Letter to National Grid
  • Governor Signs Package of Veterans Bills
  • New Cybersecurity Innovation and Research Center at Hofstra University
  • Legislation Signed Allowing Adoptees to Receive Birth Certificate at Age 18
  • Grow-NY Winners Announced
  • S. Rep Peter King will not Seek Reelection
  • Updates, Reminders, and Links
  • Coming Up

Governor Issues Letter to National Grid

Governor Cuomo issued a letter to National Grid CEO John Pettigrew and President John Bruckner giving a 14 day notice of New York State’s intent to revoke National Grid’s certificate to operate its downstate gas franchise.

Full text of the letter:

Dear Mr. Pettigrew and Mr. Bruckner,

This letter is to give you 14 days notice of my intention to have New York State move to revoke National Grid’s certificate to operate its downstate gas franchise.

National Grid (and all utilities in the state) operate only if it is in the public interest for the company to operate.

The Public Service Law provides that a utility is granted a certificate of public convenience and necessity if the corporation can provide “adequate and reliable service” and the utility’s operation is “in the public interest.” There are two additional open safety violation proceedings at the public service commission, denoting your continued reckless disregard for the obligations incumbent upon National Grid as a public utility.

Further, given National Grid’s mishandling of the gas supply system on Long Island and New York City as evidenced by your recent “moratorium” on service there is no doubt National Grid failed to provide “adequate and reliable” service. Your recent admission to the Public Service Commission that “more could have been done to communicate with customers” effectively concedes that National Grid improperly denied service to over 1,100 households and is demonstrable evidence of both your inability to provide adequate service and take advantage of the public you serve.

The essential responsibility for a utility to provide adequate and reliable service is to manage the supply and demand. The very lack of supply you now point to as the reason for your denial of service to thousands of customers exhibits your failure to plan for supply needs. Your fundamental legal obligation as mandated by your certificate of operation was to plan and provide for future needs. You failed by your own admission.

National Grid has made clear that its only plan for future supply was based on a single, speculative project: construction of a private pipeline through New Jersey and New York. The plan to build such a pipeline was risky at best. The pipeline required multiple regulatory approvals in both states, faced multiple potential legal challenges and construction hurdles. Reliance on a 12-month construction timeline for such a complex and controversial project is also irresponsible.

Considering all the risks involved in such a pipeline coming to a timely conclusion, it was incumbent upon a competent and professional utility to explore and provide contingency plans and short-term and long-term options.

The “moratorium” is either a fabricated device or a lack of competence. There is no legitimate need for it in the first place. There are existing short-term options to contract for non-piped gas from other sources, which National Grid either deliberately, negligently or incompetently did not secure. National Grid should have explored all options before denying service. Gas can be trucked, shipped, or barged, and other infrastructure could be proposed or additional unloading facilities installed. Electric service and demand response measures could be proposed. Heat pumps and renewable sources could be proposed. These options should have been explored and weighed by National Grid and made public for consumers to evaluate before National Grid denied gas service.

The pipeline, as just one option, must be evaluated together with other options for the respective economic and environmental consequences to allow the State and National Grid to make an informed decision. The choice was never between the pipeline or an immediate moratorium. There were, and are, certainly other short-term solutions. That was your legal obligation.

National Grid’s actions clearly violated the State’s mandated policy for utilities: “to formulate and carry out long-range programs, individually or cooperatively, for the performance of their public service responsibilities with economy, efficiency, and care for the public safety, the preservation of environmental values and the conservation of natural resources.”

The lack of National Grid’s capacity in addressing the supply and demand issue was actually exacerbated by National Grid’s own actions. National Grid marketed “oil to gas conversions” which increased the gas demand (and the customer base of National Grid) in reckless disregard of the company’s failure to have any future plan to meet the demand it was creating.

Furthermore, National Grid’s failure to address the supply issue, the abuse of their customers, the adverse economic impact caused by stalling private development, and the associated diminution of tax revenues to local governments, clearly demonstrate that National Grid’s operations are not in the public interest. National Grid’s imposition of a moratorium on new development and the extension of the moratorium to existing customers harmed thousands of individuals. National Grid tacitly admitted this abuse pursuant to a Public Service Commission’s finding that gas to more than 1,100 customers was wrongfully denied.

There are only two theories to explain National Grid’s actions. Either National Grid was grossly negligent in relying exclusively on the speculative construction of a private pipeline to meet the demands that it was statutorily required to provide; or, National Grid deliberately defrauded the people of the state by not developing or pursuing existing supply options to force approval and reliance on a private pipeline to further their business interests at the cost of the consumer.

Either alternative clearly violates your certificate of operation in the State of New York.

Please advise me of any considerations I have overlooked, or present meaningful and immediate remedial actions you would propose, within 14 days.

Thank you.

Governor Signs Package of Veterans Bills

This week, Governor Cuomo signed a package of bills to support New Yorkers who serve or have served in the armed forces. The package consists of 14 bills that protect the rights of active duty military members and veterans in a number of areas, including access to education, employment, voting, discharge status protection, and general services and benefits. In addition to signing the package of bills, the Governor committed to introducing legislation to create a State Veterans Cemetery and also announced a $17 million expansion of the Purple Heart Hall of Honor. The expansion of the Hall of Honor will also serve to honor the memory of the late Senator Bill Larkin.

The bills are as follows:

  • 1660A / A.4654A Enacts Program for Veterans to Receive High School Diplomas – Operation Recognition allows New York State veterans who served in World War II, Korea, and Vietnam veterans and who joined military service prior to graduating from high school be awarded high school diplomas. This bill would extend that program to all New York State veterans, including those who deployed in Operation Desert Storm, Iraq, and Afghanistan.
  • 3300 / A.6297 Requires Employers to Prominently Indicate if a Work Opportunity Is Set Aside for Disabled Veterans – Section 55-c of the Civil Service Law authorizes 500 positions be set aside for disables veterans. This bill requires employers to prominently display in their job postings that a job is 55-c eligible so that qualifying veteran applicants know of the opportunities available to them.
  • 6474 / A.8282 Adds an Additional Year of Service Credit an Applicant Can Use to Deduct from Their Age When Applying for Certain Public Service Positions – This bill allows for a veteran to deduct up to seven years of military service from their age in order to qualify to sit for placement exams for certain public service positions, such as in the NYPD or FDNY. Currently, one must be 35 or younger in order to take the test, and applicants can deduct up to six years of military service from their age to qualify. The measure allows someone to deduct more time in service to recognize that they will be better prepared to serve in these important positions.
  • 4049A / A.5660 Mandates a Report to Determine How Many Homeless Veterans Are Living in New York State – This bill mandates a report to be completed by the New York State Division of Veterans’ Services, the Office of Temporary and Disability Service, the Department of Labor, and the Office of Children and Family Services to determine the number of homeless persons in New York State who are veterans.
  • 5285A / A.1093B Allows More Veterans to Have Paid Leave for Health Reasons – Under current law, State employees who are veterans may get additional paid leave from their work to receive health-related services without loss of pay. This bill allows municipalities to offer their veteran employees the same opportunity, reflecting policy in place for veterans who are employed by the State.
  • 4477A / A.6792A Requires the New York State Division of Veterans’ Services Mobile App Be More Easily Accessible – The mobile application known as the New York State Veterans’ App has been helpful to veterans across New York but has not been widely promoted by the Division of Veterans’ Services. This bill requires the Division of Veterans’ Services to easily direct veterans to the app through its website.
  • 5991 / A.7594 Updates the Duties of the Women Veterans Coordinator at the New York State Division of Veterans’ Services – This bill updates the duties of the women veterans’ coordinator within the New York State Division of Veterans’ Services.
  • 2377 / A.1804 Requires State Agencies to Document Important Information Pertaining to the Lives of Veterans – This bill requires the New York State Departments of Health and Corrections and Community Supervision to collect certain additional information pertaining to health of veterans, such as, cases of spina bifida in children, cases of PTSD, and traumatic brain injuries.  
  • 5184 / A.7293 Makes Military Voting Provisions Available for School District Elections – Current law allows those who are serving in the military to register as military voters in New York State and to receive an absentee ballot for all federal, state, and local elections. Unfortunately, such provisions do not extend to ballots for school district elections; this bill makes military voting available for all school district elections for which absentee ballots are already authorized.
  • 6467 / A.8095A Requires Division of Veterans’ Services to Maintain a Discharge Upgrade Advisory Board Program – This bill directs the Division of Veterans’ Services to maintain a Discharge Upgrade Advisory Board Program. Under the program, Division staff would review the evidence submitted by veterans seeking to appeal their discharge status and issue written, non-binding advisory options to assist veterans during the United States Armed Forces’ appeals processes.
  • 6527 / A.8096 Requires Local Veterans Service Agencies to Assist with the Completion of the Discharge Upgrade Application – This bill requires Veteran Service Agencies to assist veterans in the process of submitting an application for a discharge upgrade.
  • 1681 / A.7289 Extends the Real Property Tax Exemption to Active Members of the Armed Forces – Currently only seriously disabled veterans, not active members of the armed forces, are eligible for a real property tax exemption when they must modify their homes to accommodate a service-related disability. This bill extends the tax exemption to seriously injured active members who stay in service despite their disability, so they can take full advantage of it when making modifications to their property.
  • S.6260 / A.7234 and S.6306 / A.8109 Authorize Specified Counties to Waive Fees for the Construction and Improvement of Veterans’ Organizations – S.6260 / A.7234 authorizes Nassau and Suffolk counties to waive for veterans’ organizations certain fees for construction of and capital improvements. S.6306 / A.8109 authorizes Washington and Saratoga counties to do the same.

New Cybersecurity Innovation and Research Center at Hofstra University

The opening of the new Cybersecurity Innovation and Research Center at Hofstra University was announced this week. The new center will train students to detect and defend against cybercrime, while fostering partnerships between industry, government and academia to analyze threats and strengthen network security across the state. New York State supported the $1.35 million project with a $200,000 capital grant, awarded through the Long Island Regional Economic Development Council.

The new 1,000 square foot Center for Cybersecurity Innovation and Research features leading technology and simulation software which will create immersive, realistic cyberattack scenarios for students to study and react to in real-time. This project represents a collaboration between the Fred DeMatteis School of Engineering and Applied Science and the Frank G. Zarb School of Business. In addition to opening the new center, Hofstra is launching a M.S. in Cybersecurity, with concentrations in technology or management and policy. This new program complements existing programs at Hofstra, including an undergraduate computer science degree in cybersecurity and an MBA in cybersecurity management and policy. 

Hofstra President and Long Island Regional Economic Development Council Co-Chair Stuart Rabinowitz said:

“Cybercrime is an existential threat with staggering global economic and security implications. Working in partnership with the State of New York, we have created a center that will train a new generation of cybersecurity experts who can stay ahead of increasingly sophisticated hackers and safeguard the information and technology that power our economy.”

Governor Cuomo said:

“Our economy is more reliant on technology than ever before, and we must ensure New York has the resources to defend against cyberattacks. This new research center will teach the next generation of New Yorkers how to counter these emerging threats, while preparing our entire state to handle the cybersecurity challenges of the future.”

Legislation Signed Allowing Adoptees to Receive Birth Certificate at Age 18

Governor Cuomo signed legislation allowing adoptees to receive a certified copy of their birth certificate when they turn 18-years-old. This legislation (S.3419 / A.5494) removes the right of government agencies to restrict the type of information made available to adopted persons and removes the previous barriers to receive information about biological parents. Under this new law, the adopted person’s lawful representative or their descendants will also be able to get access the birth certificate if the adoptee is deceased. If the birth certificate is not immediately available, information from other sources that would be contained on the original long form birth certificate would be made available upon request. 

Grow-NY Winners Announced

Winners of the Grow-NY challenge were announced this week. RealEats America was announced as the $1 million winner of the first year of the food and agriculture challenge. The Grow-NY competition is focused on growing an enduring food and agriculture innovation cluster in Central New York, the Finger Lakes, and the Southern Tier regions of New York State. The competition, which will run for three rounds, offers a total of $3 million in funding to innovative, high-growth startups from across the globe focused on the food and agriculture industry. Funding for the Grow-NY competition is provided through the Upstate Revitalization Initiatives connected with the three regions— CNY Rising, Finger Lakes Forward, and Southern Tier Soaring. Cornell University is administering the competition through its Center for Regional Economic Advancement. Grow-NY winners must commit to operating in the Central New York, Finger Lakes, or Southern Tier regions for at least one year. 

The following awards were also announced:

  • $500,000 Winner – Dropcopter – Syracuse, New York 
  • $500,000 Winner – Tiliter – Munchen, Germany 
  • $250,000 Winner – Capro-X – Ithaca, New York 
  • $250,000 Winner– Combplex – Ithaca, New York 

U.S. Rep Peter King will not Seek Reelection

Another long-serving New York congressional incumbent announced this week they would not be seeking reelection in 2020. Peter King, U.S. Representative from New York’s 2nd District, has served 14 terms in Congress, but will not be seeking a 15th term. With the enrollment advantage swinging to democrats in recent years, 2020 will be a closely watched race. Hopefuls for the seat include Liuba Grechen Shirley, a Democrat who challenged King last year and narrowly lost. Suffolk County District Attorney Tim Sini, considered a Democratic Party rising star, is also being discussed as a potential contender. Former Congressman Rick Lazio is said to be considering a run for the upcoming vacancy. Town of Islip councilwoman Trish Bergin, a relative newcomer but rising star in her own right, has already filed the paperwork and will be seeking the Republican nomination.

Rep. King said:

“My time in Congress has been an extraordinary experience – an experience I wouldn’t have even dared imagine when I was a kid growing up in Sunnyside or a college student loading and unloading trucks and freight cars at Manhattan’s West Side Railway Terminal. I intend to remain in Seaford, be active politically and look forward to seeing what opportunities and challenges await me in this next chapter of a very fortunate life. Politically I will miss the energy and dynamism of a re-election campaign especially since my polling numbers are as strong as they have ever been and I have more than $1 million in campaign funds.”

Senate Minority Leader Chuck Schumer said via twitter:

“Peter King stood head & shoulders above everyone else He’s been principled & never let others push him away from his principles He’s fiercely loved America, Long Island, and his Irish heritage and left a lasting mark on all 3 I will miss him in Congress & value his friendship.”

Updates, Reminders, and Links

City & State NY’s Winners and Losers here.

City & State NY’s The 2019 Nonprofit Power 100 here.

WAMC’s Karen Dewitt: Medicaid Budget Deficit Could Impact NYS Budget here.

Apple Card being investigated by DFS.

Forbes: New York goes out with a Whimper in Its Case against ExxonMobil here.

Coming Up

The Senate Education and Budget and Revenue Committees will hold the last of a series of public meetings to hear stakeholder input regarding the components of the Foundation Aid formula in relation to student, district and community needs with a goal of greater equity in school financing on November 19.

**POSTPONED TDB** The Senate and Assembly will hold a joint public hearing on natural gas moratoriums on November 19.

A Joint Senate and Assembly public hearing to discuss the implementation of early voting throughout New York State will be held on November 20.

The Senate and Assembly Judiciary Committees will hold their second joint public hearing on court consolidation on November 21.

The Assembly will hold a public hearing on family involvement in the child welfare and Family Court systems on November 21.

The Assembly will hold a public hearing to examine the effectiveness of Industrial Development Agencies (IDAs) and Local Development Corporations (LDCs) on November 22.

The Assembly Aging Committee will hold a public hearing on programs and services offered by Area Agencies on Aging for older New Yorkers and their caregivers on November 22.

The Senate Committees on Consumer Protection and Internet and Technology has rescheduled a public hearing on protecting consumer data and privacy on online platforms for November 22.

The Senate and Assembly Health Committees will hold a public hearing on the New York Health Act on November 25.

The Assembly Committees on Housing and Cities will hold a public hearing on affordable housing development on November 25.

The Senate Committee on Social Services will hold a public meeting to engage social service providers and advocates in a discussion of public assistance income and resource limits on November 26.

The Senate Committee on Mental Health has schedule a public hearing on OPWDD transition to managed care for December 2.

The Senate Education and Budget and Revenue Committees will hold a public hearing to examine the distribution of the Foundation Aid formula as it relates to pupil and district needs on December 3.

The Senate Committee on Budget and Revenues will hold a roundtable discussion of real property tax reform in New York City on December 4.

The Assembly Committee on Transportation will hold a public hearing on the Department of Transportation Capital Program on December 6.

The Assembly will hold a public hearing on youthful offender status and the sealing of criminal records on December 10.

The Assembly will hold a public hearing to examine capital funding for arts and cultural organizations on December 12.

The Assembly Committee on Libraries and Education Technology will hold a public hearing on funding of public libraries on December 13.

The Senate Committee on Higher Education has rescheduled a public hearing on the funding of public colleges for December 16.

The Senate Racing Committee will hold a public hearing on the economic impact of the three unused downstate casino licenses on January 22.