Plugged In @ Hinman Straub – October 25, 2019

What’s Inside

  • Governor Issues Letter to Public Service Commission Chair Regarding National Grid
  • Governor Signs Bill Increasing Death Benefits for Families of First Responders
  • Legislation Restricting Non-Profits from Endorsing or Opposing Political Candidates Signed
  • Attorney General Announces Multi-State $700 Million Settlement with Drug Distributor
  • Offshore Wind Project Contracts Finalized
  • Governor Announces Funding for Community Based Nutrition Education and Obesity Prevention
  • Carlucci Announces Congressional Bid
  • Updates, Reminders, and Links
  • Coming Up

Governor Issues Letter to Public Service Commission Chair Regarding National Grid

Governor Cuomo issued a letter to Public Service Commission Chair John Rhodes regarding National Grid’s natural gas moratorium.

 The full text of the letter is available below:

Dear Mr. Rhodes,

Upon receiving a number of reports that National Grid was using a moratorium to justify suspension of natural gas service to existing customers in portions of New York City and on Long Island, my Administration directed you to investigate whether National Grid was doing so improperly. In response, the Public Service Commission has in fact found that more than 1,100 customers that were improperly denied service should be connected without delay, and the Commission commenced a penalty action against the company. National Grid’s wrongful action denying these customers was outrageous given the number of complaints and customer outrage that had been raised. 

I now have a second issue. National Grid has asserted that a natural gas moratorium in the region is necessary unless a new multi-state natural gas pipeline is constructed. This is an admission that National Grid knew that it had a serious supply issue and could not meet its region’s energy needs. Indeed, this was not a startling insight: the looming shortage has been discussed for years with many options for additional gas supply put forward over the years. There is no doubt that the preferred option for National Grid’s self-interest is a pipeline, effectively guaranteeing its future business model.

First, why did National Grid — and your agency for that matter — not better protect customers and consumers by exploring the alternatives to mitigate this obvious supply issue when it was first raised? Why did National Grid allow a crisis to be created that suits its benefit where it essentially extorts the State saying it is either approval of their natural gas pipeline or putting critical development on Long Island in serious jeopardy?

Second, reliance on the pipeline plan as the exclusive option is reckless. The pipeline was never anticipated to be in place before at least 12 to 18 months, and that is barring unforeseen circumstances and many common issues that delay a complicated multi-state project. If other states don’t approve the pipeline or if there is a construction delay, or litigation, or weather and other conditions that slow the project — all probable scenarios — does development on Long Island grind to a halt? Given the uncertainty of such a project — including necessary multi-state approvals and previous community opposition to similar projects — this situation clearly demonstrates the importance of utilities having a diverse portfolio of solutions to meeting its customers’ needs. To put it bluntly: what was the plan if there was a delay and why weren’t alternatives developed?

As the regulator of critical service for residents in the State, it is incumbent upon you to immediately analyze the existing supply needs and provide alternatives to the pipeline and in the event the pipeline project is undertaken and not completed on time. Therefore, I direct you to expeditiously demonstrate that you have fully analyzed the existing supply needs and alternatives to natural gas pipelines including:

(1) The primary alternatives available to meet consumer and business needs while ensuring the reliability of the natural gas system (e.g. oil, propane, shipping of liquified natural gas, renewable sources, demand side energy reductions); and,

(2) Environmental, community, ratepayer, and economic impacts for delivery of alternative sources (e.g. by barge or trucking) to meet demand and ensure reliability.

National Grid consciously failed to develop alternative supplies both as an alternative to the pipeline and as a contingency to a stalled pipeline. Therefore, I would also demand a response to your agency’s performance of its oversight duty in this case. National Grid’s lack of preparedness for the looming supply shortage, failure to explore options, over reliance on a highly complex and controversial pipeline project and extortive behavior wrongfully terminating customers and halting development, were open and obnoxious hostile actions to customers and your agency failed to adequately anticipate, respond, or prevent this harm which was your regulatory duty. I also want to know when and how we eliminate an abusive utility from the state to protect consumers. To that end, I want the specific explanation of potential grounds for revocation of National Grid’s license and its liability for the damage that has already been incurred and future damages which will be incurred over the following 12 to 18 months as development is delayed for additional projects is needed. I would also like the specifics necessary to appoint a monitor to oversee National Grids operation on an intense and constant basis to guarantee consumer protection.

The overall Long Island economy will be effected as well as tax revenues and additional project costs caused by National Grid’s actions.

The fact that National Grid has consumers in a position whereby National Grid gets what it wants or consumers are punished is unconscionable. A utility does not have license to harm customers because it believes it has an irrevocable franchise and is immune from effective regulatory oversight. I will not allow that situation to continue.

I expect an immediate response.

Sincerely,

Governor Andrew M. Cuomo

Governor Signs Bill Increasing Death Benefits for Families of First Responders

Governor Cuomo signed a bill (S.3168-A/A.4079-B) increasing special accidental death benefits for spouses and children of police officers and firefighters killed in the line of duty. Specifically, the new law increases cost of living benefits by 3 percent for the deceased’s spouse or the deceased’s children under the age of 18 or, if a student, under the age of 23. Similar legislation has passed every year dating back to 1978, providing a cost of living adjustment to families of first responders who were killed in the line of duty.

Governor Cuomo said:

“Police and firefighters who lose their lives in the line of duty are mothers, fathers, husbands and wives – and the family members they leave behind must be properly cared for. With this measure, we continue to honor these brave first responders and better help ensure their families get the support and the benefits they deserve.”

Legislation Restricting Non-Profits from Endorsing or Opposing Political Candidates Signed

Governor Cuomo signed legislation (S.4347/A.623) restricting non-profit corporations from participating or intervening in any political campaign on behalf of or against a candidate running for public office. The bill codifies into state law the federal restriction on non-profit corporations participating or intervening in political campaigns, also known as the Johnson Amendment. The Johnson Amendment to 501(c) (3) of the Internal Revenue Service Code provides that a 501(c) (3) organization, which is exempt from taxation, may not “participate in, or intervene in (including the publishing or distributing of statements), any political campaign on behalf of (or in opposition to) any candidate for public office.” The bill takes effect immediately.

Senator Liz Krueger said:

“This is a simple bill that serves an important purpose – to keep in place standards we have had in this country for over sixty years that shield not-for-profits and houses of worship from political entanglement. The administration in Washington has repeatedly said they want to repeal these protections, and open the door for big-money donors to launder campaign contributions through churches, mosques, and synagogues. This would politicize non-profits, undermining their focus on their primary missions, and damaging public trust in the non-profit sector. I thank Governor Cuomo for signing this bill into law today, and making clear that in New York State we know this long-held standard is not broken, and we don’t want Washington to try to ‘fix’ it.”

Attorney General Announces Multi-State $700 Million Settlement with Drug Distributor

Attorney General James announced that a multi-state settlement has been reached with the pharmaceutical distributor Reckitt Benckiser Group (“Reckitt”) to settle allegations that the company improperly marketed and promoted the drug Suboxone, resulting in improper expenditure of state Medicaid funds. Reckitt will pay $700 million to the settle the allegations. As part of the agreement, New York’s Medicaid program will receive more than $71.9 million in total recoveries, with more than $39.9 million being returned to New York State. Reckitt had been accused of promoting off label use, making false and misleading claims, and fraudulently delaying entry of generic competition.

Attorney General James said:

“Pharmaceutical companies have a basic duty to ensure that they are properly disclosing and marketing powerful drugs. Reckitt misled the public about the real impacts of Suboxone and encouraged physicians to wrongly prescribe it, while cheating New York out of tens of millions of dollars in the process. No company is above the law and we will continue to take on anyone who takes advantage of the opioid crisis to increase their bottom line.”

Offshore Wind Project Contracts Finalized

The New York State Energy Research and Development Authority (NYSERDA) has finalized contracts with Equinor Wind US LLC for its 816 megawatt Empire Wind Project and Sunrise Wind LLC for its 880 megawatt Sunrise Wind Project. NYSERDA also concurrently submitted its comprehensive filing, “Launching New York’s Offshore Wind Industry: Phase 1 Report,” to the New York State Department of Public Service. Some of the main findings in the report include the following:

  • New York’s first procurement for offshore wind generated significant response ultimately receiving 18 different proposals from four developers.
  • Average bill impact for residential customers will be under $1 per month.
  • Claims $700 million in savings by avoiding adverse health impacts associated with asthma and respiratory and cardiovascular diseases.
  • The project will produce $3.2 billion in combined economic impacts to New York, more than $85 million investments in long-term port facilities and cutting-edge technologies and are expected to deliver over 1,600 direct new jobs in project development, component manufacturing, installation, and operations and maintenance.

Alicia Barton, President and CEO, NYSERDA said:

“By every measure, New York’s first offshore wind procurement was a resounding success and the execution of contracts today signifies a major milestone in our nation-leading pursuit to deliver clean, locally-produced power to millions of New York homes and businesses. These projects, which represent the largest ever renewable energy procurement made by a state in U.S. history, will deliver tremendous economic benefits and provide jobs to thousands of New Yorkers.”

Governor Announces Funding for Community Based Nutrition Education and Obesity Prevention

Governor Cuomo announced $12.9 million in federal funding for 16 non-profit organizations to promote healthy diets and active lifestyles among individuals and households eligible to receive or that are receiving Supplemental Nutrition Assistance Program benefits. The funds will be administered by the state Office of Temporary and Disability Assistance. The following organizations were awarded funding:

  • The Children’s Aid Society; $738,155
  • City Harvest; $800,000
  • Bronx Works; $689,706
  • Common Threads; $799,864
  • Cornell Cooperative Extension Albany County; $800,000
  • Cornell Cooperative Extension Allegany County; $300,000
  • Cornell Cooperative Extension Erie County; $796,276
  • Cornell Cooperative Extension Oneida County; $800,000
  • Cornell Cooperative Extension Onondaga County; $800,000
  • Cornell Cooperative Extension Orange County; $800,000
  • Cornell Cooperative Extension Steuben County; $794,094
  • Cornell Cooperative Extension St. Lawrence County; $680,000
  • Cornell Cooperative Extension Suffolk County; $800,000
  • Cornell Cooperative Extension Wayne County; $799,897
  • Food Bank for New York City; $800,000
  • New York Common Pantry; $800,000

Carlucci Announces Congressional Bid

State Senator David Carlucci has officially announced his intention to run for Nita Lowey’s congressional seat. Lowey recently announced her upcoming retirement creating immediate speculation on who would attempt to succeed her. Carlucci had publicly flirted with the idea initially. Carlucci is joined by Assemblyman David Buchwald, and Mondaire Jones as the only candidates to officially announce.

Updates, Reminders, and Links

City & State NY’s Winners and Losers here.

Medicaid on track for a $2.9 billion shortfall.

Early voting in New York begins this Saturday.

Coming Up

** This hearing has been postponed** The Senate Committees on Consumer Protection and Internet and Technology will hold a public hearing on protecting consumer data and privacy on online platforms on October 25.

The Senate Committee on Higher Education will hold a series of public hearings regarding the cost of public higher education. The hearings will take place on October 28, October 30, and November 1.

The Senate Codes Committee will hold its second public hearing on discovery reform implementation on October 28.

The Senate Mental Health committee will hold a public hearing on eating disorders, treatment, and discovery on October 28.

A Joint Senate Assembly public hearing on the state’s response federal government shutdowns will be held on October 29.

The Assembly Health Committee will hold a public hearing on youth tackle football, scheduled for October 29.

JCOPE will hold its next meeting on Tuesday, October 29.

The Senate Education and Budget and Revenue Committees will hold a series of public meetings around the state 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 October 29, November 13, and November 19.

The Senate Task Force on Opioid and Drug Abuse will hold another public meeting to hear from stakeholders on strategies for reducing overdoses, improving individual and community health, and addressing the harmful consequences of drug use on October 30.

The Senate Committees on Consumer Protection, Health, and Education will hold a public hearing to investigate the safety and potential harms of electronic cigarettes and vaping, especially among school-aged youth on November 4.

The Senate Committee on Mental Health will hold a public hearing on veteran mental health and well-being on November 6.

A Joint Senate Assembly public hearing on the MTA 2020-2024 capital program will be held on November 12.

The Assembly Committees on Higher Education and Environmental Conservation will hold a public hearing on the environmental footprint of colleges and universities in New York on November 13.

The Senate and Assembly Judiciary Committees will hold joint public hearings on court consolidation on November 13 and November 21.

The PSC will hold its next meeting on Thursday, November 14.

The Assembly Committees on Codes and Correction will hold a public hearing on alternatives to incarceration and pretrial services on November 14. 

Joint Senate Task Force on Opioids, Addiction and Overdose Prevention will hold a public hearing on strategies for reducing overdoses, improving individual and community health, and addressing the harmful consequences of drug use on November 15.

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

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.