I 
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 eco-
nomic 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 Representa-
tives 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 sub-
section (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 au-
thorized,’’. 
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 Develop-
ment 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 pay-
ment 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 Har-
bor in Buffalo, and Erie County, New York, includ-
ing transportation infrastructure improvements and 
Skyway Bridge alternatives. Other qualified uses 
may include brownfield remediation, greenway trail 
design and construction and other waterfront envi-
ronmental 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 sub-
paragraph (B).
(2) ADDITIONAL ANNUAL PAYMENT TO COUN-
TIES.—(A) In order to achieve the yet unrealized re-
gional 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 subse-
quent license, the payment of 1 percent of gross pro-
ceeds to be split evenly by the Industrial Develop-
ment 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 com-
mitted to incremental capital investment and job re-
tention and creation in each such county. The pro-
ceeds shall be disbursed to such western New York 
industries and businesses and used by such indus-
tries 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 ac-
tion 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 pre-
ceding fiscal year, excluding power used by the Cor-
poration or sold or delivered to any other depart-
ment 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 con-
duct an audit of Niagara Power Project finances and oper-
ations since project inception in order to provide con-
sistent and timely information concerning the true eco-
nomic impact of the Niagara Power Project and its rev-
enue and disbursements and shall conduct subsequent an-
nual 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 condi-
tions imposed on any license issued subsequent to the