Bill Text: NY A04592 | 2023-2024 | General Assembly | Amended
Bill Title: Aligns utility regulation with state climate justice and emission reduction targets; repeals provisions relating to continuation of gas service; repeals provisions relating to the sale of indigenous natural gas for generation of electricity.
Spectrum: Partisan Bill (Democrat 74-0)
Status: (Introduced) 2024-01-16 - print number 4592b [A04592 Detail]
Download: New_York-2023-A04592-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 4592--B 2023-2024 Regular Sessions IN ASSEMBLY February 17, 2023 ___________ Introduced by M. of A. FAHY, SHRESTHA, SIMON, CARROLL, COLTON, GONZA- LEZ-ROJAS, L. ROSENTHAL, SHIMSKY, SEAWRIGHT, GALLAGHER, ARDILA, BURDICK, STERN, LUNSFORD, DARLING, THIELE, FORREST, REYES, SILLITTI, CRUZ, LEVENBERG, RAMOS, KELLES, MAMDANI, RAJKUMAR, DICKENS, BORES, STECK, BURGOS, DE LOS SANTOS, GIBBS, WEPRIN, EPSTEIN, SIMONE, STIRPE, CLARK, MITAYNES, ANDERSON, FALL, CUNNINGHAM, PAULIN, HUNTER, DINOWITZ, JEAN-PIERRE, OTIS, TAPIA, ZACCARO, KIM, HEVESI, DAVILA, SEPTIMO, RAGA, LAVINE, SOLAGES, BRONSON, PRETLOW, ALVAREZ, TAYLOR, GLICK, MEEKS, JACKSON, LUPARDO, PHEFFER AMATO, LEE, SAYEGH, JACOBSON, BICHOTTE HERMELYN, EACHUS, VANEL, AUBRY, RIVERA, WILLIAMS, CHANDLER-WATERMAN -- read once and referred to the Committee on Corpo- rations, Authorities and Commissions -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said commit- tee -- recommitted to the Committee on Corporations, Authorities and Commissions in accordance with Assembly Rule 3, sec. 2 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the public service law, the public authorities law, the transportation corporations law and the labor law, in relation to aligning utility regulation with state climate justice and emission reduction targets; to repeal section 66-b of the public service law relating to continuation of gas service; and to repeal section 66-g of the public service law relating to the sale of indigenous natural gas for generation of electricity The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Short title. This act shall be known and may be cited as 2 the "NY Home Energy Affordable Transition Act". 3 § 2. Legislative findings. The legislature finds and declares that: 4 1. The Climate Leadership and Community Protection Act (the "CLCPA") 5 created legal mandates for dramatic greenhouse gas emission reductions EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD02688-18-4A. 4592--B 2 1 from all sectors of New York's economy. The CLCPA also emphasizes equity 2 in addressing climate change by requiring all state agencies and author- 3 ities to prioritize reductions of greenhouse gas emissions and co-pollu- 4 tants in disadvantaged communities and by mandating that certain state 5 investments deliver benefits to these communities. 6 2. Buildings are New York's largest source of greenhouse gas emis- 7 sions, accounting for approximately one-third of the greenhouse gas 8 emissions in our state. New York state's buildings also produce more 9 local air pollution than any other state in the country, resulting in 10 negative health outcomes such as increased rates of asthma, particularly 11 among children, and heart disease. Therefore, reducing greenhouse gas 12 emissions and toxic air pollution emitted from New York's buildings, 13 especially in disadvantaged communities, is necessary to meet the CLCPA 14 mandates. 15 3. To meet the state's bold climate and equity mandates, New York will 16 need to update how it regulates gas utility service. Doing so will 17 enable strategic planning and investments in neighborhood-scale building 18 decarbonization and help bring the statewide gas distribution system 19 into alignment with the two thousand thirty and two thousand fifty 20 greenhouse gas emission reduction mandates in the CLCPA through an 21 orderly and equitable process, coordinated with appropriate investments 22 in the electric system to ensure all New Yorkers have non-discriminato- 23 ry, affordable access to the energy needed for heating, cooling, and 24 powering the buildings in which they live and work. 25 4. The New York public service law not only contains barriers to 26 neighborhood-scale building decarbonization solutions such as thermal 27 energy networks, but also works at cross purposes with the state's 28 climate and affordability goals, by requiring and subsidizing the 29 continued expansion of natural gas infrastructure. 30 a. The gas utility obligation to serve codified in the public service 31 law is a major obstacle to utilities developing neighborhood-scale 32 building decarbonization projects that would facilitate bringing the gas 33 system into alignment with the two thousand thirty and two thousand 34 fifty greenhouse gas emission reduction mandates in the CLCPA in a 35 manner that can mitigate costs for all utility customers, reduces green- 36 house gas emissions and co-pollutants impacting local air quality, and 37 provides a transition for impacted workers. 38 b. Statutorily mandated utility system extension allowances require 39 existing ratepayers to subsidize gas infrastructure hookups for new 40 customers. According to a recent joint filing with the Public Service 41 Commission by the New York state gas utilities, these required allow- 42 ances cost gas utilities hundreds of millions of dollars per year. 43 These costs are passed directly to existing gas customers. 44 c. Gas utilities in New York are on track to collectively spend $150 45 billion to replace thousands of miles of leak prone pipe in the coming 46 years. These investments pose a risk of becoming stranded assets, with 47 $77 billion of the total cost coming due after 2050, but can be avoided 48 in many cases by strategically investing in neighborhood-scale decarbon- 49 ization projects. 50 5. New Yorkers are suffering from dramatic fossil fuel price spikes 51 driven by the increasingly integrated global commodity market, subject 52 to the whims of foreign dictators such as Russia's Vladimir Putin or 53 Saudi Arabia's Prince Mohammed bin Salman. Fossil fuel prices have 54 spiked to historic high levels, making both electricity and gas utility 55 service unaffordable for many New Yorkers. Decarbonizing buildings 56 through the strategic development of neighborhood-scale building decar-A. 4592--B 3 1 bonization projects, along with investing in energy efficiency and 2 renewable electricity, will save New Yorkers money now and in the 3 future, protect against price volatility, and promote true energy inde- 4 pendence for New York state. 5 6. Fossil fuel price spikes are exacerbating the affordability impacts 6 of the COVID-19 Pandemic. Over a million households in New York now 7 struggle to pay their utility bills. The Public Service Commission has 8 declared, but not yet achieved, a goal that customers should not pay 9 more than 6% of their income for utility energy services, a number based 10 on a nationally accepted standard. 11 7. Thus, it is the intent of the legislature to enact the NY Home 12 Energy Affordable Transition Act for the following purposes: 13 a. to ensure that the public service law regarding regulation and 14 oversight of gas utilities will provide for the timely and strategic 15 decarbonization and right-sizing of the gas distribution system in a 16 just and affordable manner as required to meet the climate justice and 17 emission reduction mandates of the CLCPA, appropriately balancing rate- 18 payers' needs and interests with the maintenance of financially sound 19 utilities, prioritizing low-to-moderate income customers and disadvan- 20 taged communities, and encouraging neighborhood-scale transitions; 21 b. to provide the Public Service Commission with the statutory author- 22 ity and direction to align utility regulations and planning with the 23 CLCPA climate justice and emission reduction mandates and to require the 24 Public Service Commission to take a proactive role in the timely iden- 25 tification and amendment of such regulations or rulings as may pose an 26 impediment to achieving CLCPA mandates, and to identify any laws that 27 may pose an impediment; 28 c. to maintain the affordability of services for all utility custom- 29 ers, create good paying, family sustaining jobs, and facilitate achieve- 30 ment of the CLCPA climate justice and emission reduction mandates by 31 enabling gas utilities to minimize the need for new investments in gas 32 infrastructure; 33 d. to facilitate a well-planned and strategic downsizing of the gas 34 system by redirecting ratepayer funds that would have been spent on 35 costly new investments to maintain or expand the gas system to instead 36 fund job-creating neighborhood-scale decarbonization projects that 37 provide alternative clean energy solutions for efficient heating, cool- 38 ing, cooking, hot water, and other uses that effectively transition 39 customers away from dependence on fuels with greenhouse gas emissions 40 and equipment that produces on-site co-pollutant emissions; 41 e. to end statutorily mandated, ratepayer-subsidized incentives for 42 the expansion of fossil fuel infrastructure while maintaining the equi- 43 table provision of electric service for efficient heating, cooling, 44 cooking, hot water, and other uses; 45 f. to provide affordable access to electricity for heating and cooling 46 and to protect low-income and moderate-income customers from undue 47 burdens as they decarbonize their buildings; and 48 g. to clarify that municipal building codes regulating on-site emis- 49 sions are not preempted under New York state law. 50 8. Transitioning gas customers to alternative heating and cooling 51 services is likely to be most cost-effective from the perspective of 52 individual customers and New York state as a whole if undertaken as part 53 of a neighborhood-scale project. Such projects would help minimize 54 stranded costs in gas system infrastructure and support coordinated 55 investments on the part of customers, utilities, and others, potentiallyA. 4592--B 4 1 including but not limited to electrification make-ready measures, equip- 2 ment located on the premises of customers, and thermal energy networks. 3 9. This legislation does not establish a ban on the use of gas. It is 4 neither the intent nor would it be the effect of this legislation to 5 require the immediate transition of existing gas customers to alterna- 6 tive heating and cooling services. 7 § 3. Subdivision 1 of section 4 of the public service law, as amended 8 by chapter 594 of the laws of 2021, is amended to read as follows: 9 1. There shall be in the department of public service a public service 10 commission, which shall possess the powers and duties hereinafter speci- 11 fied, and also all powers necessary or proper to enable it to carry out 12 the purposes of this chapter and to enable achievement of the climate 13 justice and emission reduction mandates in chapter one hundred six of 14 the laws of two thousand nineteen, and such successors in law and func- 15 tion as may arise from time to time. The commission shall consist of 16 five members, to be appointed by the governor, by and with the advice 17 and consent of the senate. A commissioner shall be designated as [chair-18man] chairperson of the commission by the governor to serve in such 19 capacity at the pleasure of the governor or until his or her term as 20 commissioner expires whichever first occurs. At least one commissioner 21 shall have experience in utility consumer advocacy. No more than three 22 commissioners may be members of the same political party unless, pursu- 23 ant to action taken under subdivision two of this section, the number of 24 commissioners shall exceed five, and in such event no more than four 25 commissioners may be members of the same political party. 26 § 4. Subdivisions 1 and 2 of section 5 of the public service law, 27 subdivision 1 as amended and subdivision 2 as added by chapter 155 of 28 the laws of 1970, paragraph i of subdivision 1 as added by chapter 375 29 of the laws of 2022, are amended to read as follows: 30 1. The jurisdiction, supervision, powers and duties of the public 31 service commission shall extend under this chapter: 32 [b.] a. To the manufacture, conveying, transportation, sale or 33 distribution of gas (natural or manufactured or mixture of both) and 34 electricity for light, heat, cooling, or power, to gas plants and to 35 electric plants and to the persons or corporations owning, leasing or 36 operating the same. 37 [c.] b. To the manufacture, holding, distribution, transmission, sale 38 or furnishing of steam for heat or power, to steam plants and to the 39 persons or corporations owning, leasing or operating the same. 40 [d.] c. To every telephone line which lies wholly within the state and 41 that part within the state of New York of every telephone line which 42 lies partly within and partly without the state and to the persons or 43 corporations owning, leasing or operating any such telephone line. 44 [e.] d. To every telegraph line which lies wholly within the state and 45 that part within the state of New York of every telegraph line which 46 lies partly within and partly without the state and to the persons or 47 corporations owning, leasing or operating any such telegraph line. 48 [f.] e. To the furnishing or distribution of water for domestic, 49 commercial or public uses and to water systems and to the persons or 50 corporations owning, leasing or operating the same. 51 [g.] f. To every stock yard within the state and to the stock yard 52 company owning, leasing or operating the same, to the same extent and in 53 respect to the same objects and purposes as such jurisdiction extends, 54 under this chapter, to depots, freight houses and shipping stations of a 55 common carrier, including the duty of such stock yard company to submit 56 reports and be subjected to investigation as if it were a common carri-A. 4592--B 5 1 er, and the powers and duties of such commission to fix charges and make 2 and enforce orders relating to adequate service by such company. 3 [h.] g. A corporation or person owning or holding a majority of the 4 stock of a common carrier, gas corporation or electrical corporation 5 subject to the jurisdiction of the public service commission shall be 6 subject to the supervision of the public service commission in respect 7 of the relations between such common carrier, gas corporation or elec- 8 trical corporation and such owners or holders of a majority of the stock 9 thereof in so far as such relations arise from or by reason of such 10 ownership or holding of stock thereof or the receipt or holding of any 11 money or property thereof or from or by reason of any contract between 12 them; and in respect of such relations shall in like manner and to the 13 same extent as such common carrier, gas corporation or electrical corpo- 14 ration be subject to examination of accounts, records and memoranda, and 15 shall furnish such reports and information as the public service commis- 16 sion shall from time to time direct and require, and shall be subject to 17 like penalties for default therein. 18 [i.] h. To thermal energy provided by gas corporations, electric 19 corporations, or combination gas and electric corporations. 20 2. The commission shall encourage all persons and corporations subject 21 to its jurisdiction to formulate and carry out long-range programs, 22 individually or cooperatively, for the performance of their public 23 service responsibilities, including the achievement of the climate 24 justice and emission reduction mandates in chapter one hundred six of 25 the laws of two thousand nineteen, and such successors in law and func- 26 tion as may arise from time to time, with economy, efficiency, and care 27 for the public safety, the preservation of environmental values and the 28 conservation of natural resources. 29 § 5. Section 30 of the public service law, as amended by chapter 686 30 of the laws of 2002, is amended to read as follows: 31 § 30. Residential gas, electric and steam service policy. 1. This 32 article shall apply to the provision of all or any part of the gas, 33 electric or steam service provided to any residential customer by any 34 gas, electric or steam and municipalities corporation or municipality. 35 It is hereby declared to be the policy of this state that the continued 36 provision of [all or any part of such gas,] electric and steam [service] 37 services to all residential customers without unreasonable qualifica- 38 tions or lengthy delays is necessary for the preservation of the health 39 and general welfare, is consistent with the achievement of the state's 40 climate justice and emission reduction mandates, and is in the public 41 interest. It is further the policy of this state that electric and 42 steam services to all residential customers, and gas service for exist- 43 ing residential customers must be provided in a manner that is safe and 44 adequate, not unjustly discriminatory or unduly preferential, and in all 45 respects just and reasonable, while providing for an orderly right-siz- 46 ing of the gas distribution system to achieve consistency with the 47 climate justice and emission reduction mandates in chapter one hundred 48 six of the laws of two thousand nineteen, and such successors in law and 49 function as may arise from time to time, encouraging neighborhood-scale 50 transitions and the elimination of on-site co-pollutants. 51 2. The commission shall regulate for the continued provision of gas 52 service to all existing residential customers who choose to continue 53 such service, unless such service is discontinued pursuant to a program 54 approved by the commission. Such programs shall ensure that any transi- 55 tioning customer has access to:A. 4592--B 6 1 (a) safe and reliable substitutes for heating, cooling, cooking, and 2 water-heating prior to a cessation of gas service; and 3 (b) necessary and appropriate financial and technical support, includ- 4 ing for the purchase and installation of customer-owned equipment. 5 3. (a) It shall be a goal of the commission that all residential 6 customers be adequately protected from bearing an energy burden greater 7 than six percent of their household income, prioritizing low-to-moderate 8 income customers, including those who are already eligible for the 9 commission's energy affordability program. The commission may authorize 10 the use of reasonable per-customer caps on the amount of energy subject 11 to the affordability protections of this subdivision. The commission may 12 also establish a reasonable cap on collections from ratepayers to fund 13 the commission's energy affordability program or similar successor 14 programs provided such cap is not less than 3% of total electric or gas 15 revenues for sales to end-use customers for each utility. 16 (b) Within one year of the effective date of this subdivision, the 17 commission shall develop a plan to implement the goal under paragraph 18 (a) of this subdivision. In developing such plan, the commission shall 19 evaluate available tools, including but not limited to bill discounts, 20 bill credits, redirection of avoided costs of utility infrastructure, 21 rate making strategies, energy efficiency, distributed renewable energy, 22 and potential budgetary measures, prioritizing mitigation of rate 23 increases on residential customers. Beginning in the calendar year 24 following the effective date of this subdivision, and continuing annual- 25 ly on or before October first, the commission shall report to the gover- 26 nor and legislature on the actions it has taken, including the plan 27 developed pursuant to this paragraph, and the progress that has been 28 made toward achieving the goal laid out in paragraph (a) of this subdi- 29 vision. Such report shall include but not be limited to recommendations 30 regarding any additional legislative or budgetary measures necessary to 31 achieve such goal. The annual report shall also be published on the 32 commission's website. 33 4. For the purposes of this section, the term "low-to-moderate income 34 customers" shall mean households with annual incomes at or below eighty 35 percent of the state median income. 36 § 6. Subdivision 1 of section 1020-cc of the public authorities law, 37 as amended by section 11 of part A of chapter 173 of the laws of 2013, 38 is amended to read as follows: 39 1. All contracts of the authority shall be subject to the provisions 40 of the state finance law relating to contracts made by the state. The 41 authority shall also establish rules and regulations with respect to 42 providing to its residential gas, electric and steam utility customers 43 those rights and protections provided in article two and sections one 44 hundred seventeen and one hundred eighteen of the public service law and 45 section one hundred thirty-one-s of the social services law. It shall 46 be a goal of the authority that all residential customers be adequately 47 protected from bearing an energy burden greater than six percent of 48 their household income pursuant to subdivision three of section thirty 49 of the public service law. The authority shall conform to any safety 50 standards regarding manual lockable disconnect switches for solar elec- 51 tric generating equipment established by the public service commission 52 pursuant to subparagraph (ii) of paragraph (a) of subdivision five and 53 subparagraph (ii) of paragraph (a) of subdivision five-a of section 54 sixty-six-j of the public service law. The authority shall let contracts 55 for construction or purchase of supplies, materials, or equipment pursu-A. 4592--B 7 1 ant to section one hundred three and paragraph (e) of subdivision four 2 of section one hundred twenty-w of the general municipal law. 3 § 7. Subdivisions 1, 3 and 4 of section 31 of the public service law, 4 as added by chapter 713 of the laws of 1981, are amended to read as 5 follows: 6 1. Every gas corporation, electric corporation or municipality shall 7 provide residential service upon the oral or written request of an 8 applicant, provided that any residential gas service shall only be 9 provided in accordance with section thirty of this article and is 10 subject to any orders or regulations limiting or discontinuing gas 11 service that are implemented by the commission to facilitate the 12 achievement of consistency with the climate justice and emission 13 reduction mandates in chapter one hundred six of the laws of two thou- 14 sand nineteen, and such successors in law and function as may arise from 15 time to time, and provided further that the commission may require that 16 requests for service be in writing under circumstances as it deems 17 necessary and proper as set forth by regulation, and provided further 18 that the applicant: 19 (a) makes full payment for residential utility service provided to a 20 prior account in [his] the applicant's name; or 21 (b) agrees to make payments under a deferred payment plan of any 22 amounts due for service to a prior account in [his] the applicant's name 23 and makes a down payment based on criteria to be established by the 24 commission. No such down payment shall exceed one-half of any money due 25 from an applicant for residential utility service, or three months aver- 26 age billing, whichever is less; or 27 (c) is a recipient of public assistance, supplemental security income 28 or additional state payments pursuant to the social services law, or is 29 an applicant for such assistance, income or payments, and the utility 30 corporation or the municipality receives payment from, or is notified of 31 the applicant's eligibility for utility payments by the social services 32 official of the social services district in which such person resides 33 for amounts due for service to a prior account in the applicant's name, 34 together with guarantee of future payments to the extent authorized by 35 the social services law; and 36 (d) receives clear, timely information from the gas corporation, elec- 37 tric corporation, municipality, or retail energy service company, writ- 38 ten in plain language, available in the top twelve most common non-Engl- 39 ish languages spoken by limited English proficient New Yorkers, and 40 approved by the commission after stakeholder input, on incentives and 41 opportunities for installing, energy-efficient electric heating and 42 cooling technologies, weatherization, demand-side management, and 43 distributed energy resource programs. 44 (e) nothing in this subdivision shall be construed to prohibit exist- 45 ing gas customers, in accordance with section thirty of this article and 46 subject to any other regulations implemented by the commission, from 47 reconnecting to the gas distribution system following a gas interruption 48 due to emergency repairs or remediation of leaking equipment. 49 3. Subject to the requirements of subdivisions four and five of this 50 section, and in accordance with section thirty of this article, whenever 51 a residential customer moves to a new residence within the service 52 territory of the same utility corporation or municipality, [he] the 53 applicant shall be eligible to receive service at the new residence and 54 such service shall be considered a continuation of service [in all55respects] as operationally feasible based on infrastructure and commod- 56 ity availability at the site of the new residence, with any deferredA. 4592--B 8 1 payment agreement honored, and with all rights of such customer and such 2 utility corporation provided by this article unimpaired. 3 4. In the case of any application for service to a building which is 4 not supplied with electricity or gas, a utility corporation or munici- 5 pality shall be obligated to provide electric service to such a build- 6 ing, and to provide gas service for such a building in accordance with 7 commission regulation, provided however, that the commission may require 8 applicants for service to buildings [located in excess of one hundred9feet from gas or electric transmission lines] to pay or agree in writing 10 to pay material and installation costs relating to the applicant's 11 proportion of the pipe, conduit, duct or wire, or other facilities to be 12 installed. 13 § 8. Section 12 of the transportation corporations law, as separately 14 amended by chapters 713 and 895 of the laws of 1981, is amended to read 15 as follows: 16 § 12. Gas and electricity must be supplied on application in accord- 17 ance with commission rules and regulations. Except in the case of an 18 application for residential utility service pursuant to article two of 19 the public service law, upon written application of the owner or occu- 20 pant of any building [within one hundred feet of any main of a gas21corporation or gas and electric corporation, or a line of an electric22corporation or gas and electric corporation, appropriate to the service23requested,] and payment by [him] the applicant of all money due from 24 [him] the applicant to the corporation, it shall supply [gas or] elec- 25 tricity as may be required for [lighting] such building and it may 26 provide gas for such building in accordance with commission regulation, 27 notwithstanding there be rent or compensation in arrears for gas or 28 electricity supplied, or for meter, wire, pipe or fittings furnished, to 29 a former occupant thereof, unless such owner or occupant shall have 30 undertaken or agreed with the former occupant to pay or to exonerate 31 [him] them from the payment of such arrears, and shall refuse or neglect 32 to pay the same; and if for the space of ten days after such applica- 33 tion, and the deposit of a reasonable sum as provided in the next 34 section, if required, the corporation shall refuse or neglect to supply 35 gas or [electric light] electricity as required, such corporation shall 36 forfeit and pay to the applicant the sum of ten dollars, and the further 37 sum of five dollars for every day thereafter during which such refusal 38 or neglect shall continue; provided that no such corporation shall be 39 required to lay service pipes or wires for the purpose of supplying gas 40 or electric light to any applicant where the ground in which such pipe 41 or wire is required to be laid shall be frozen, or shall otherwise pres- 42 ent serious obstacles to laying the same; nor unless the applicant, if 43 required, shall deposit in advance with the corporation a sum of money 44 sufficient to pay the cost of [his proportion] the applicant's portion 45 of the pipe, conduit, duct or wire required to be installed, and the 46 expense of the installation of such portion. 47 § 9. Subdivision 2 of section 66 of the public service law, as amended 48 by chapter 877 of the laws of 1953, is amended and a new subdivision 49 12-e is added to read as follows: 50 2. Investigate and ascertain, from time to time, the quality of gas 51 supplied by persons, corporations and municipalities; examine or inves- 52 tigate the methods employed by such persons, corporations and munici- 53 palities in manufacturing, distributing and supplying gas or electricity 54 for light, heat, cooling, or power and in transmitting the same, and 55 have power to order such reasonable improvements as will best promote 56 the public interest, preserve the public health and protect those usingA. 4592--B 9 1 such gas or electricity and those employed in the manufacture and 2 distribution thereof, and have power to order reasonable improvements 3 and extensions of the works, wires, poles, lines, conduits, ducts and 4 other reasonable devices, apparatus and property of gas corporations, 5 electric corporations and municipalities; and have power after an inves- 6 tigation and a hearing to order any corporation having authority under 7 any general or special law or under any charter or franchise, to lay 8 down, erect or maintain wires, pipes, conduits, ducts or other fixtures 9 in, over or under the streets, highways and public places of any munici- 10 pality for the purpose of supplying, selling or distributing natural 11 gas, to augment its supply of natural gas, whenever the commission deems 12 necessary and whenever artificial gas can be reasonably obtained, by 13 acquiring by purchase, manufacture or otherwise a supply thereof to be 14 mixed with such natural gas, in order to render adequate service to the 15 customers of such corporation or to maintain a proper and uniform pres- 16 sure; and have power after an investigation and a hearing to order any 17 corporation having authority under any general or special law or under 18 any charter or franchise, to lay down, erect or maintain wires, pipes, 19 conduits, ducts or other fixtures in, over or under the streets, high- 20 ways and public places of any municipality for the purpose of supplying, 21 selling or distributing artificial gas, to augment its supply of artifi- 22 cial gas, whenever the commission deems necessary and whenever natural 23 gas can be reasonably obtained, by acquiring by purchase or otherwise a 24 supply thereof to be mixed with such artificial gas, in order to render 25 adequate service to the customers of such corporation or to maintain a 26 proper and uniform pressure; and to fix such rate for the supplying of 27 mixed gas as shall secure to such corporation a fair return; and may 28 order the curtailment or discontinuance of the use of natural gas for 29 manufacturing or industrial purposes, for periods aggregating not to 30 exceed four months in any calendar year, if it is established to the 31 satisfaction of the commission that the supply of natural gas is not 32 adequate to meet the reasonable demands of domestic consumption and may 33 [prohibit the use of natural gas in wasteful devices and practices] 34 order the curtailment or discontinuance of the use of the distribution 35 system, where the commission has determined that such curtailment or 36 discontinuance is reasonably required to implement state energy policy, 37 provided that such curtailment or discontinuance shall be consistent 38 with programs approved by the commission pursuant to subdivision two of 39 section thirty of this chapter, and may prohibit the use of natural gas 40 in wasteful devices and practices, as defined by the commission, and 41 require conservation and efficiency in gas usage. 42 12-e. The commission shall review the capital construction plan of 43 each gas corporation and establish a process to examine feasible alter- 44 natives to such construction in order to achieve consistency with the 45 climate justice and emission reduction mandates in chapter one hundred 46 six of the laws of two thousand nineteen, and such successors in law and 47 function as may arise from time to time, encouraging neighborhood-scale 48 transitions and the elimination of on-site co-pollutant emissions. Such 49 process shall include thresholds and criteria for the types of projects 50 subject to such examination. The commission shall require participation 51 in such process by each electric corporation with a service area over- 52 lapping the service area of the gas corporation; and the commission 53 shall have the power to require any such electric corporation to partic- 54 ipate in alternatives to gas capital construction, including partic- 55 ipation in financing. Any costs incurred by such electric corporationA. 4592--B 10 1 for such corporation's participation shall be subject to an opportunity 2 for full recovery, as determined by the commission. 3 § 10. Section 66-a of the public service law, as added by chapter 7 of 4 the laws of 1948, subdivision 1 as amended and subdivision 3 as added by 5 chapter 582 of the laws of 1975, and subdivision 2 as amended by chapter 6 722 of the laws of 1977, is amended to read as follows: 7 § 66-a. Conservation of gas, declaration of policy, delegation of 8 power. 1. It is hereby declared to be the policy of this state that 9 when there develops in any area a situation under which a gas corpo- 10 ration supplying gas to such area is unable to meet the reasonable needs 11 of its consumers and of persons or corporations applying for new or 12 additional gas service, the available supply of gas shall be allocated 13 among the customers of such gas corporation, in such manner as may be 14 necessary to protect public health and safety and to avoid undue hard- 15 ship, particularly for low-to-moderate income residential customers, 16 electric generation needed for electric system reliability, and custom- 17 ers with hard-to-electrify industrial and commercial uses, pursuant to 18 rules and regulations as may be adopted by the commission, and that to 19 carry out this declared policy the jurisdiction of the public service 20 commission should be clarified. It is further declared to be the policy 21 of this state that gas service to existing customers must be provided in 22 a manner that is safe and adequate, not unjustly discriminatory or undu- 23 ly preferential, and in all respects just and reasonable, subject to the 24 provisions of section thirty of this chapter. 25 2. Notwithstanding the provisions of any statute or any franchise held 26 by a gas corporation, the commission shall have power, upon the finding 27 that continued gas service is not consistent with the achievement of the 28 climate justice and emission reduction mandates in chapter one hundred 29 six of the laws of two thousand nineteen, and such successors in law and 30 function as may arise from time to time, or that there exists such a 31 shortage of gas in any area in the state, that the gas corporation 32 supplying such area is unable and will be unable to secure or produce 33 sufficient gas to meet the reasonable needs of its customers and of 34 persons or corporations applying for new or additional gas service, to 35 require such corporation to immediately discontinue the supplying of gas 36 to additional customers or of supplying additional service to present 37 customers, for such purpose or purposes as may be designated by the 38 commission, or to customers using gas for a purpose prohibited by the 39 commission pursuant to this act, and that upon the finding that the 40 supply of gas available is and will be insufficient to supply the 41 demands of all consumers receiving service, to require such gas corpo- 42 ration to curtail or discontinue service to any or all classes of 43 customers of such gas corporation. In imposing such a direction or 44 requirement, the commission shall give consideration first to existing 45 domestic uses and uses deemed to be necessary by the commission to 46 protect public health and safety and to avoid undue hardship [and shall47be limited to the period of the emergency provided that the gas corpo-48ration affected shall make such restriction, curtailing or discontin-49uance applicable to all customers or applicants for service in a like50class. If the commission determines that good cause exists for supplying51service to additional customers or for supplying additional service to52some existing customers, notwithstanding the curtailment or discontin-53uance of service to other existing customers, it shall, to the extent54feasible, allocate gas with equal priority to new or additional domestic55uses of gas and commercial or industrial processes which require gas56because there is no practical substitute for it in such proportion asA. 4592--B 11 1the commission determines to be reasonable. Provided that the commis-2sion shall be permitted, after public hearing, to authorize any natural3gas produced from lands under the waters of Lake Erie to be used for4process or feedstock requirements]. The commission is authorized to 5 adopt such rules, regulations and orders as are necessary or appropriate 6 to carry out these delegated powers. 7 3. In carrying out the delegated powers provided for in this section, 8 the commission shall, to the extent practicable, determine and establish 9 gas conservation measures or standards, including energy efficient elec- 10 trification of gas end uses. The commission may require compliance with 11 such measures or standards as a condition of receiving service. 12 4. The commission shall determine conditions under which new or addi- 13 tional gas service is warranted notwithstanding the need to conserve 14 resources for service to existing gas customers. Such determination 15 shall be consistent with the achievement of the climate justice and 16 emission reduction mandates in chapter one hundred six of the laws of 17 two thousand nineteen, and such successors in law and function as may 18 arise from time to time, and may take into account factors including 19 economic development, impacts on new and existing customers including 20 low-to-moderate income customers, impacts on system safety and adequacy, 21 equity toward existing customers with limited conversion alternatives, 22 and the feasibility of neighborhood-scale alternatives to usage of fuels 23 with greenhouse gas emissions and on-site co-pollutants, including ther- 24 mal energy networks. 25 5. The commission shall require gas and/or electric utilities to 26 provide coordination assistance and financial assistance, in such forms 27 as the commission deems reasonably required to implement state energy 28 policy, to identify and adopt alternatives where applications for new or 29 additional gas service are denied and encourage neighborhood-scale tran- 30 sitions. 31 § 11. Section 66-b of the public service law is REPEALED. 32 § 12. The public service law is amended by adding a new section 66-w 33 to read as follows: 34 § 66-w. Expansion of gas company service territories. Except as 35 provided in this section, and notwithstanding any other provision of 36 this chapter, after December thirty-first, two thousand twenty-four, the 37 commission shall not grant an amendment of a gas company's certificate 38 of public convenience and necessity that expands a gas company's service 39 territory in order to extend gas plant and the availability of gas 40 service into geographic areas where gas service was not available prior 41 to such date. The commission may authorize exceptions to the policy set 42 forth in this section on a case-by-case basis, provided that the commis- 43 sion finds that the amendment of the certificate of public convenience 44 and necessity is limited to a project that serves a compelling state 45 interest, alternatives to gas service are either not technically feasi- 46 ble or prohibitively expensive, and that the project will be completed 47 and put into service not later than December thirty-first, two thousand 48 twenty-seven. 49 § 13. Section 66-g of the public service law is REPEALED. 50 § 14. The public service law is amended by adding a new section 77-a 51 to read as follows: 52 § 77-a. Aligning utility regulation with climate justice and emission 53 reduction mandates. 1. Within three months of the effective date of 54 this section, the commission shall initiate a proceeding, or multiple 55 proceedings, as it deems appropriate, to consider and act on the matters 56 identified in this section in order to better align its regulation ofA. 4592--B 12 1 utility services with the timely achievement, of consistency with the 2 climate justice and emission reduction mandates in chapter one hundred 3 six of the laws of two thousand nineteen, and such successors in law and 4 function as may arise from time to time. If the commission is already 5 engaged in a proceeding addressing one or more of the matters identi- 6 fied in this section, it shall not be required to open a new proceeding 7 on that matter. Following completion of all proceedings initiated 8 pursuant to this section, the commission shall initiate regular subse- 9 quent proceedings, as it deems necessary, to ensure the achieve- 10 ment of the goals outlined in this section. The proceeding or 11 proceedings shall include: 12 (a) Within one year of the effective date of this section, a review of 13 the public service law and its current rules and policy guidance to 14 identify any law, rule, guidance, or lack thereof, that may inhibit 15 timely, equitable achievement of consistency with the climate 16 justice and emission reduction mandates in chapter one hundred six of 17 the laws of two thousand nineteen, and such successors in law and func- 18 tion as may arise from time to time. The commission shall report to the 19 legislature its progress and findings, identify subsequent actions it 20 will take, and make recommendations for any statutory amendments, or 21 budgetary or other actions that may be needed to facilitate the timely 22 achievement of such mandates. 23 (b) Within one year of the effective date of this section, a revision 24 of the commission's rules and regulations for determining appropriate 25 allowances for the extension of gas and electric utility services to 26 ensure that utility service is provided in a manner consistent with the 27 achievement of the climate justice and emission reduction mandates in 28 chapter one hundred six of the laws of two thousand nineteen, and such 29 successors in law and function as may arise from time to time. In estab- 30 lishing rules governing the allowance for the extension of gas service, 31 the commission shall eliminate all main and service line extension 32 allowances for gas service and may increase allowances for electric 33 service. The commission may establish rules that provide for distinct 34 electric allowances for all-electric customers and for dual-fuel custom- 35 ers and may provide additional electric allowances to buildings that are 36 made ready for beneficial electric loads such as those with electric 37 vehicle charging facilities and grid interactive buildings. The commis- 38 sion may also establish allowances for buildings seeking interconnection 39 with thermal energy networks. 40 (c) In order to minimize long-term costs and stranded assets, and 41 maximize savings and benefits for customers, within one year of the 42 effective date of this section the commission shall issue an order 43 requiring each gas corporation, within one hundred eighty days of the 44 issuance of such order, to restructure its plan for addressing the leak- 45 prone gas mains and service lines on its system to facilitate the order- 46 ly right-sizing of the gas distribution system to achieve consistency 47 with the climate justice and emission reduction mandates in chapter one 48 hundred six of the laws of two thousand nineteen, and such successors in 49 law and function as may arise from time to time, while maintaining safe- 50 ty and reliability of the gas system, subject to all relevant federal 51 laws and regulations. To accomplish this, the commission shall require 52 each gas corporation, in coordination with any and all electric corpo- 53 rations with overlapping service areas, to pursue programs pursuant to 54 subdivision two of section thirty of this chapter that minimize the 55 replacement of leak-prone gas mains and service lines. The commission 56 shall require each gas corporation, after notice and comment, to estab-A. 4592--B 13 1 lish criteria for evaluating whether specific segments of leak-prone 2 mains and service lines are candidates for such programs and to evalu- 3 ate their entire inventory of leak-prone pipes to create a strategic 4 decommissioning ranking in which it ranks the segments in terms of the 5 ability to electrify all customers served by the segment and retire the 6 gas distribution infrastructure. The commission shall require each gas 7 corporation to file an annual report that provides a qualitative and 8 quantitative assessment of the reduction of leak-prone pipe inventory 9 and that updates the strategic decommissioning ranking from the prior 10 year. The commission shall establish notice requirements and consumer 11 and affordability protections in accordance with section thirty of this 12 chapter applicable to customers served by segments of the gas distrib- 13 ution system targeted for decommissioning. 14 (d) In order to maximize the cost savings and benefits of the transi- 15 tion of the electric system for the equitable, orderly, and affordable 16 achievement of consistency with the climate justice and emission 17 reduction mandates in chapter one hundred six of the laws of two thou- 18 sand nineteen, and such successors in law and function as may arise from 19 time to time, within one year of the effective date of this section the 20 commission shall issue an order requiring all electric corporations to 21 pursue all available electric energy efficiency and demand flexibility 22 measures that are cost-effective, reliable, and feasible. No less 23 frequently than every three years, the commission shall identify the 24 statewide achievable potential for energy efficiency and demand flexi- 25 bility measures for the subsequent ten-year period and establish annual 26 energy efficiency and demand flexibility targets for each electric 27 corporation that are no lower than its proportional share of the state- 28 wide achievable potential. 29 (e) Within one year of the effective date of this section, the commis- 30 sion shall complete a proceeding to develop and issue a report evaluat- 31 ing and considering rate making strategies to encourage and facilitate 32 achievement of the climate justice and emission reduction mandates in 33 chapter one hundred six of the laws of two thousand nineteen, and such 34 successors in law and function as may arise from time to time. The 35 report shall explore options for developing and assessing the impacts of 36 rates for electric, gas, steam, and thermal energy networks on total 37 customer energy costs, and shall explore options for integrating cost 38 sharing and recovery across utilities and services. The report shall 39 also identify statutory barriers to the implementation of such strate- 40 gies. In considering such rate making strategies, the commission shall 41 have a goal of ensuring that all residential customers be adequately 42 protected from bearing an energy burden greater than six percent of 43 their household income pursuant to subdivision three of section thirty 44 of this chapter. 45 (f) Within one year of the effective date of this section, the commis- 46 sion shall determine, based on the best available information, the 47 greenhouse gas emission reductions necessary to bring the statewide gas 48 distribution system into alignment with the statewide two thousand thir- 49 ty and two thousand fifty greenhouse gas emission reduction targets in 50 chapter one hundred six of the laws of two thousand nineteen, and such 51 successors in law and function as may arise from time to time, and set 52 interim emission reduction targets for each gas utility as well as 53 developing a periodic process to review and update such targets; 54 (g) Within one year of the effective date of this section, the commis- 55 sion shall revise its rules and regulations for conducting benefit-cost 56 analyses so that the methodology and the base financial and frameworkA. 4592--B 14 1 assumptions for the analysis support achievement of the climate justice 2 and emission reduction mandates in chapter one hundred six of the laws 3 of two thousand nineteen, and such successors in law and function as may 4 arise from time to time. Such revisions shall include, but not be 5 limited to: 6 (1) Greenhouse gas emission reduction mandates shall be used as a 7 constraint in designing the scenarios to be analyzed such that all the 8 scenarios shall comply with the statutory greenhouse gas emission 9 requirements and any interim targets set by the department of environ- 10 mental conservation or the commission in order to internalize the cost 11 of achieving such targets in the benefit-cost analysis. 12 (2) Quantification of public health impacts from improvements in ambi- 13 ent and indoor air quality. When quantitative metrics are not possible, 14 qualitative analysis shall be included. 15 (3) Consideration of the significant uncertainties and risks associ- 16 ated with different scenarios, including the environmental impact of 17 leaked gas, the prolonged reliance on the gas system that results from 18 long-lived investments in gas infrastructure and gas-consuming equip- 19 ment, the positive option value associated with measures that can elimi- 20 nate or defer the need for investments in gas infrastructure and gas- 21 consuming equipment, and potential challenges associated with full 22 electrification. 23 (4) In instances where an alternative fuel has an environmental attri- 24 bute, only attribute alternative fuels with emission reduction benefits 25 under the benefit-cost analysis if the environmental attributes are 26 retained by the utility for the benefit of the utility's customers or by 27 the end-use customer. 28 (5) Use accurate depreciation schedules that assume the full value of 29 any new gas asset is fully depreciated no later than two thousand fifty, 30 absent demonstration that the specific asset will remain in service 31 beyond two thousand fifty, and earlier if it is likely that such asset 32 will need to be phased out or retired before two thousand fifty given 33 any interim greenhouse gas emission reduction targets or geographically 34 targeted strategic asset retirement. 35 (6) Assess demographic impacts by measuring with as much geographic 36 granularity as possible and considering different levels of exposure and 37 risk factors for impacts on disadvantaged communities and other popu- 38 lations with vulnerability to changes induced by regulation. 39 2. Nothing in this chapter or any other law of New York state shall be 40 interpreted or otherwise construed as preempting a municipality from 41 adopting building codes or other regulations regarding on-site emissions 42 for new and existing buildings within their localities. 43 § 15. The labor law is amended by adding a new section 224-g to read 44 as follows: 45 § 224-g. Wage requirements for neighborhood-scale decarbonization 46 projects. 1. For purposes of this section, the term "covered neighbor- 47 hood-scale decarbonization project" shall mean projects performed by 48 contractors or subcontractors hired directly by a public utility compa- 49 ny, as defined by subdivision twenty-three of section two of the public 50 service law, to ensure that customers permanently transitioning off 51 utility gas service have access to safe and reliable substitutes for 52 heating, cooling, cooking, and water-heating prior to a cessation of gas 53 service. 54 2. Notwithstanding the provisions of section two hundred twenty-four-a 55 of this article, a covered neighborhood-scale decarbonization project 56 shall be subject to prevailing wage requirements in accordance withA. 4592--B 15 1 sections two hundred twenty and two hundred twenty-b of this article. 2 Provided that a neighborhood-scale decarbonization project which is not 3 considered to be covered by this section may still otherwise be consid- 4 ered a covered project pursuant to section two hundred twenty-four-a of 5 this article if it meets the requirements of such definition. 6 3. For purposes of this section, a covered neighborhood-scale decar- 7 bonization project shall not include: 8 a. projects performed under private contract with an entity other than 9 a public utility company, even if the building owner or the contractor 10 receives financial and technical support from a public utility company, 11 including for the purchase and installation of customer-owned equipment; 12 b. projects that meet exclusion criteria established by the public 13 service commission at its discretion to reasonably ensure the require- 14 ments of this section do not inhibit equitable and orderly achievement 15 of the climate justice and emission reduction mandates in chapter one 16 hundred six of the laws of two thousand nineteen, and such successors in 17 law and function as may arise from time to time; or 18 c. projects performed under a pre-hire collective bargaining agreement 19 between an owner or contractor and a bona fide building and construction 20 trade labor organization which has established itself, and/or its affil- 21 iates, as the collective bargaining representative for all persons who 22 will perform work on such a project, and which provides that only 23 contractors and subcontractors who sign a pre-negotiated agreement with 24 the labor organization can perform work on such a project, or projects 25 performed under a labor peace agreement, project labor agreement, or any 26 other project performed under an enforceable agreement between an owner 27 or contractor and a bona fide building and construction trade labor 28 organization. 29 4. For purposes of this section, the "fiscal officer" shall be deemed 30 to be the commissioner. The enforcement of any covered neighborhood-sca- 31 le decarbonization project pursuant to this section shall be subject to 32 the requirements of sections two hundred twenty, two hundred twenty-a, 33 two hundred twenty-b, two hundred twenty-three, two hundred 34 twenty-four-b and two hundred twenty-seven of this article and within 35 the jurisdiction of the fiscal officer; provided, however, nothing 36 contained in this section shall be deemed to construe any covered neigh- 37 borhood-scale decarbonization project as otherwise being considered 38 public work pursuant to this article. 39 5. The fiscal officer may issue rules and regulations governing the 40 provisions of this section. Violations of this section shall be grounds 41 for determinations and orders pursuant to section two hundred twenty-b 42 of this article. 43 § 16. This act shall take effect immediately.
