Bill Text: NY A04870 | 2025-2026 | General Assembly | Amended


Bill Title: Aligns utility regulation with state climate justice and emission reduction targets; provides for a statewide affordable gas transition plan and utility home energy affordable transition programs; 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 60-0)

Status: (Introduced) 2025-02-07 - print number 4870a [A04870 Detail]

Download: New_York-2025-A04870-Amended.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                         4870--A

                               2025-2026 Regular Sessions

                   IN ASSEMBLY

                                    February 6, 2025
                                       ___________

        Introduced by M. of A. SIMON, SHRESTHA, R. CARROLL, COLTON, GONZALEZ-RO-
          JAS,  ROSENTHAL,  SHIMSKY, SEAWRIGHT, GALLAGHER, BURDICK, STERN, LUNS-
          FORD, FORREST, REYES, LEVENBERG,  RAMOS,  KELLES,  MAMDANI,  RAJKUMAR,
          BORES,  STECK,  DE LOS SANTOS, GIBBS, WEPRIN, EPSTEIN, SIMONE, STIRPE,
          CLARK, MITAYNES, ANDERSON, FALL, CUNNINGHAM, PAULIN, HUNTER, DINOWITZ,
          OTIS, TAPIA, ZACCARO, KIM, HEVESI, SEPTIMO,  RAGA,  BRONSON,  ALVAREZ,
          TAYLOR,  GLICK,  MEEKS,  JACKSON, LUPARDO, PHEFFER AMATO, LEE, SAYEGH,
          JACOBSON, BICHOTTE HERMELYN, VANEL, RIVERA, CHANDLER-WATERMAN,  ZINER-
          MAN,  WALKER,  LUCAS  --  read  once  and referred to the Committee on
          Corporations, Authorities and  Commissions  --  committee  discharged,
          bill  amended,  ordered  reprinted  as amended and recommitted to said
          committee

        AN ACT an act to amend the public service law,  the  public  authorities
          law,  the  transportation  corporations  law  and  the  labor  law, in
          relation to enacting the NY Home Energy Affordable Transition Act;  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 elec-
          tricity

          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" or the "NY HEAT Act".
     3    § 2. Legislative findings. The legislature finds and declares that:
     4    1. The Climate Leadership and Community Protection  Act  (CLCPA)  sets
     5  forth  ambitious  mandates  to  achieve significant greenhouse gas (GHG)
     6  emission  reductions  across  New  York's  economy,  while  prioritizing
     7  reductions  in  co-pollutant  emissions in disadvantaged communities and
     8  requiring significant state investments to bring the  affordability  and
     9  health  benefits of energy efficiency and clean energy to these communi-
    10  ties.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05559-05-5

        A. 4870--A                          2

     1    2. Buildings are the largest source of  GHG  emissions  in  New  York,
     2  contributing  approximately  one-third  of  the state's total emissions.
     3  They also produce significant local air pollution,  leading  to  adverse
     4  health  outcomes  such as asthma and heart disease, especially in disad-
     5  vantaged communities. Reducing emissions and pollution from buildings is
     6  essential  to meeting the CLCPA's climate and equity goals and improving
     7  public health.
     8    3. Achieving New York's climate  and  equity  objectives  necessitates
     9  updating  the regulation of gas utilities. Current policies create misa-
    10  lignment between gas system investments and the CLCPA's  2030  and  2050
    11  mandates,  increasing  the  risk  of a costly and disorderly transition.
    12  Strategic planning and investment are needed to  decarbonize  buildings,
    13  right-size  the  gas  system, and ensure coordinated enhancements to the
    14  electric system, enabling equitable and affordable access to clean ener-
    15  gy solutions for all New Yorkers. Such investments will lead to  signif-
    16  icant  benefits:  the  Climate  Action  Council  found  that the cost of
    17  inaction on climate exceeds  the  cost  of  action  by  more  than  $115
    18  billion.
    19    4. Outdated public service laws are misaligned with the state's energy
    20  affordability goals and CLCPA mandates in the following ways:
    21    a.  The  "utility obligation to serve gas" compels utilities to expand
    22  gas infrastructure, making it challenging to redirect investments toward
    23  insulating and upgrading homes and installing clean energy  alternatives
    24  like electrification and thermal energy networks that align with climate
    25  goals while mitigating costs for ratepayers.
    26    b. Mandated system extension allowances require existing ratepayers to
    27  subsidize  gas hookups for new customers, costing ratepayers hundreds of
    28  millions of dollars annually.
    29    c. Utilities are projected to spend $150 billion to replace leak-prone
    30  gas pipelines. Through the changes implemented  in  this  act,  many  of
    31  these  investments  could  be  avoided by redirecting funds to neighbor-
    32  hood-scale decarbonization projects. Neighborhood-scale  projects  offer
    33  the  most cost-effective pathway to transition gas customers to alterna-
    34  tive heating and cooling solutions. These projects reduce  costs,  mini-
    35  mize  stranded  investments  in  the  gas system, and enable coordinated
    36  efforts among utilities, customers, and other stakeholders.
    37    5. This legislation, the NY  Home  Energy  Affordable  Transition  (NY
    38  HEAT) Act, seeks to:
    39    a.  Reduce unjust and disproportionate energy cost burdens by avoiding
    40  unnecessary, non-strategic, and  expensive  gas  infrastructure  invest-
    41  ments, and improving affordability protections.
    42    b.  Ensure  utility regulations do not work at cross-purposes with the
    43  CLCPA.
    44    c. Provide the Public Service  Commission  with  clear  authority  and
    45  direction  to  align  utility  planning  with  CLCPA  goals, proactively
    46  addressing regulatory barriers and  recommending  necessary  legislative
    47  changes.
    48    d.  Minimize  the need for new gas infrastructure investments by redi-
    49  recting ratepayer funds to alternatives including electrification, ther-
    50  mal energy networks, targeted energy efficiency,  demand  response,  and
    51  market transformation measures.
    52    e.  Facilitate  a  planned,  neighborhood-scale  transition  away from
    53  fossil fuels, avoiding stranded gas infrastructure costs and  supporting
    54  coordinated  investments  that reduce emissions, increase affordability,
    55  and create good paying jobs.

        A. 4870--A                          3

     1    f. Ensure equitable access to affordable, clean  energy  for  heating,
     2  cooling,  and  other  building  needs,  protecting  customers from undue
     3  burdens during the transition.
     4    6. This legislation does not impose a ban on the use of gas. It is the
     5  intent  of  the  Legislature  to support a gradual and carefully planned
     6  transition for existing gas customers to cleaner alternatives,  ensuring
     7  affordability, reliability, and equity throughout the process.
     8    § 3. The public service law is amended by adding two new sections 66-y
     9  and 66-z to read as follows:
    10    §  66-y.  Statewide  affordable gas transition plan.  1. No later than
    11  two years after the effective date of this section, the commission shall
    12  publish a statewide affordable gas transition plan to guide an  orderly,
    13  affordable,  and  equitable  right-sizing of the utility gas system in a
    14  manner that aligns  with,  and  supports  achievement  of,  the  climate
    15  justice and emissions reduction provisions in chapter one hundred six of
    16  the  laws of two thousand nineteen, and such successors in law and func-
    17  tion as may arise from time to time, incorporating in such plan  prudent
    18  investments  and  strategic  opportunities to generate cost efficiencies
    19  for all gas and electric customers and redirect resources toward assist-
    20  ing customers to upgrade their homes and energy  appliances.  Such  plan
    21  shall include, at a minimum:
    22    (a) Targets for the transition of gas system infrastructure and recom-
    23  mendations  for  planning  and investment strategies for the state's gas
    24  corporations to achieve such targets.
    25    (b) General requirements for utility home energy affordable transition
    26  programs pursuant to section  sixty-six-z  of  this  article,  regarding
    27  criteria  for  approval of such programs and neighborhood gas transition
    28  projects implemented as part of such programs, including requirements:
    29    (i) to ensure customers affected  by  a  neighborhood  gas  transition
    30  project  have  continued access to safe and reliable energy services for
    31  heating, cooling, cooking, and water heating;
    32    (ii) for utilities to notify customers affected by a neighborhood  gas
    33  transition project in a timely manner;
    34    (iii)  to  ensure the ability of the electrical grid to safely support
    35  any new electric load created by a  home  energy  affordable  transition
    36  program,  including for utility participation in any coordination activ-
    37  ities regarding grid planning; and
    38    (iv) to prioritize voluntary disconnections from gas service, to mini-
    39  mize the cost of transition for existing gas and electric customers, and
    40  to encourage utilization of existing resources for weatherization, ener-
    41  gy efficiency, and electrification programs available in the state.
    42    (c) In collaboration with the state's gas and  electric  corporations,
    43  identification  of  a  preliminary  list  of neighborhood gas transition
    44  projects best suited for  home  energy  affordable  transition  programs
    45  pursuant to section sixty-six-z of this article.
    46    (d) A review of the public service law and its current rules and poli-
    47  cy  guidance  to identify any law, rule, guidance, or lack thereof, that
    48  may inhibit timely and equitable achievement of the climate justice  and
    49  emission  reduction provisions in chapter one hundred six of the laws of
    50  two thousand nineteen, and such successors in law and  function  as  may
    51  arise from time to time.
    52    2.  In  developing  an affordable gas transition plan pursuant to this
    53  section, the department shall hold no fewer than four public hearings in
    54  different regions of the state.
    55    3. Upon completion, the statewide affordable gas transition plan shall
    56  be made available on the department's website and shall be delivered  to

        A. 4870--A                          4

     1  the  governor, the temporary president of the senate, and the speaker of
     2  the assembly.
     3    §  66-z.  Utility  home  energy affordable transition programs. 1. The
     4  commission shall, for each gas corporation in this state, issue an order
     5  to develop home energy affordable transition programs pursuant  to  this
     6  section,  and in accordance with the statewide affordable gas transition
     7  plan in section sixty-six-y of this article, and shall  require  partic-
     8  ipation  of  such  gas corporation as necessary for implementation. Such
     9  programs shall require implementation  of  neighborhood  gas  transition
    10  projects  for  the  purpose  of decommissioning discrete segments of the
    11  utility gas system in order to provide for an orderly gas system transi-
    12  tion to achieve  consistency  with  the  climate  justice  and  emission
    13  reduction provisions 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.  Development  and  approval  of  such  programs shall be
    16  completed no later than one year  after  the  statewide  affordable  gas
    17  transition plan has been published.
    18    2.  Prior  to January first, two thousand thirty, no existing residen-
    19  tial gas customer, as such term is referenced in section thirty of  this
    20  chapter,  shall  have their gas service discontinued as part of a neigh-
    21  borhood gas transition project  implemented  pursuant  to  this  section
    22  except by consent of such customer.
    23    3.  Programs  shall  be  designed  to  maximize cost efficiencies from
    24  avoided investments in the expansion and maintenance of the gas  system,
    25  and redirect resources toward implementation of neighborhood gas transi-
    26  tion  projects, including assisting customers to upgrade their homes and
    27  energy appliances, including those used for heating,  cooling,  cooking,
    28  and  water heating, in addition to utilizing state and federal appliance
    29  and efficiency incentive programs and other available funding streams.
    30    4. The commission shall only approve programs  that  ensure  that  all
    31  affected residential customers will:
    32    (a)  have  continued  access  to safe and reliable energy services for
    33  heating, cooling, cooking, and water heating;
    34    (b) have access to funding and technical support for the purchase  and
    35  installation  of  customer-owned equipment at low or no cost, as well as
    36  for the purposes of identifying,  planning,  and  securing  services  to
    37  undertake  weatherization  and energy efficiency measures, and pre-elec-
    38  trification upgrades, using any resources available for such purposes;
    39    (c) be given notice at least two years in advance of the cessation  of
    40  gas  service,  and at least every six months subsequently, via mail and,
    41  when applicable, electronically, and, where feasible, through  at  least
    42  one  in-person  contact,  and  be provided notification of financial and
    43  technical assistance available to such customers  from  the  utility  or
    44  other state or federal programs to support electrification;
    45    (d)  have  an  opportunity to comment on the proposed neighborhood gas
    46  transition project before it is finalized; and
    47    (e) be provided notice when an adjacent customer  connected  to  their
    48  local  gas  grid  has voluntarily opted to discontinue service, via mail
    49  and, when applicable, electronically.
    50    5. The commission shall require each gas corporation to reevaluate its
    51  existing plans, policies, and programs related to proactive  replacement
    52  of  gas  system infrastructure based on analyses of discrete segments of
    53  the gas system that are most suitable to be prioritized for neighborhood
    54  gas transition projects.
    55    6. The commission shall ensure that any program approved  pursuant  to
    56  this section will not compromise the safety and reliability of the elec-

        A. 4870--A                          5

     1  tric  distribution  grid or gas distribution system, or result in unrea-
     2  sonable disruption of service to buildings that are used for  an  indus-
     3  trial   or   commercial   use  that  is  difficult  to  electrify  using
     4  commercially  available technology or that house an energy intensive and
     5  trade exposed industry, or to critical infrastructure as such terms  are
     6  defined by the commission.
     7    7. Programs approved pursuant to this section shall not compromise the
     8  ability  of a gas corporation to seek to recover prudent, commission-ap-
     9  proved investments in infrastructure that was used and useful.
    10    8. Prior to approval, the commission shall consider whether a  program
    11  is  adequately  designed  to  mitigate  potential  financial hardship to
    12  affected residential customers in connection  with  the  replacement  of
    13  gas-fired  appliances  as  part  of neighborhood gas transition projects
    14  implemented pursuant to the program.
    15    § 4. Subdivision 1 of section 4 of the public service law, as  amended
    16  by chapter 594 of the laws of 2021, is amended to read as follows:
    17    1. There shall be in the department of public service a public service
    18  commission, which shall possess the powers and duties hereinafter speci-
    19  fied,  and also all powers necessary or proper to enable it to carry out
    20  the purposes of this chapter and to enable achievement  of  the  climate
    21  justice  and emission reduction provisions in chapter one hundred six of
    22  the laws of two thousand nineteen, and such successors in law and  func-
    23  tion  as  may  arise from time to time.  The commission shall consist of
    24  five members, to be appointed by the governor, by and  with  the  advice
    25  and consent of the senate. A commissioner shall be designated as [chair-
    26  man]  chairperson  of  the  commission  by the governor to serve in such
    27  capacity at the pleasure of the governor or until [his] the  commission-
    28  er's term [as commissioner] expires whichever first occurs. At least one
    29  commissioner shall have experience in utility consumer advocacy. No more
    30  than  three  commissioners  may  be  members of the same political party
    31  unless, pursuant to action taken under subdivision two of this  section,
    32  the number of commissioners shall exceed five, and in such event no more
    33  than four commissioners may be members of the same political party.
    34    §  5.  Paragraph b of subdivision 1 of section 5 of the public service
    35  law, as amended by chapter 155 of the laws of 1970, is amended  to  read
    36  as follows:
    37    b. To the manufacture, conveying, transportation, sale or distribution
    38  of  gas (natural or manufactured or mixture of both) and electricity for
    39  light, heat, cooling, or power, to gas plants and to electric plants and
    40  to the persons or corporations owning, leasing or operating the same.
    41    § 6. Section 30 of the public service law, as amended by  chapter  686
    42  of the laws of 2002, is amended to read as follows:
    43    §  30.  Residential  gas,  electric  and steam service policy. 1. This
    44  article shall apply to the provision of all or  any  part  of  the  gas,
    45  electric  or  steam  service provided to any residential customer by any
    46  gas, electric or steam and municipalities corporation  or  municipality.
    47  It  is hereby declared to be the policy of this state that the continued
    48  provision of [all or any part of such gas,] electric and steam [service]
    49  services to all residential customers  without  unreasonable  qualifica-
    50  tions  or lengthy delays is necessary for the preservation of the health
    51  and general welfare, is consistent with the achievement of  the  state's
    52  climate  justice  and  emission  reduction  goals,  and is in the public
    53  interest.  It is further the policy of  this  state  that  electric  and
    54  steam  services to all residential customers, and gas service for exist-
    55  ing residential customers must be provided in a manner that is safe  and
    56  adequate, not unjustly discriminatory or unduly preferential, and in all

        A. 4870--A                          6

     1  respects just and reasonable, while providing for an orderly, affordable
     2  and equitable right-sizing of the utility gas system to achieve consist-
     3  ency with the climate justice and emission reduction provisions in chap-
     4  ter  one  hundred  six  of  the  laws of two thousand nineteen, and such
     5  successors in law and function as may arise from time to time, encourag-
     6  ing  neighborhood-scale  transitions  and  the  elimination  of  on-site
     7  co-pollutants.
     8    2.  (a)  The  commission shall regulate for the continued provision of
     9  gas service to all  existing  residential  gas  customers,  unless  such
    10  service  is discontinued pursuant to a home energy affordable transition
    11  program approved by the commission pursuant to  section  sixty-six-z  of
    12  this chapter.
    13    (b) For the purposes of this section, any new residential gas customer
    14  purchasing  or  renting  or  moving  into  a  building with existing gas
    15  service, or in which gas service was temporarily interrupted, as defined
    16  by the commission, including  temporary  interruption  for  emergencies,
    17  disasters,  maintenance,  repairs,  renovation, or restoration, shall be
    18  treated as an existing customer unless and until such service is discon-
    19  tinued pursuant to a home energy affordable transition program  approved
    20  by the commission.
    21    3.  (a) Within one year of the effective date of this subdivision, the
    22  commission shall develop a plan to ensure that all residential customers
    23  be adequately protected from bearing an energy burden greater  than  six
    24  percent of their household income.  In developing such plan, the commis-
    25  sion  shall  evaluate available tools, including but not limited to bill
    26  discounts, bill credits, redirection of avoided costs of utility infras-
    27  tructure, rate making strategies, energy efficiency, distributed renewa-
    28  ble energy, and potential budgetary measures, prioritizing mitigation of
    29  rate increases on residential customers. Beginning in the calendar  year
    30  following the effective date of this subdivision, and continuing annual-
    31  ly on or before October first, the commission shall report to the gover-
    32  nor and legislature on the actions it has taken and progress it has made
    33  toward implementing the plan developed pursuant to this paragraph.  Such
    34  report shall include but not be limited to recommendations regarding any
    35  additional  legislative  or budgetary measures necessary to achieve such
    36  goal. The annual report shall also  be  published  on  the  commission's
    37  website.  In implementing the plan developed pursuant to this paragraph,
    38  the commission shall prioritize  low-to-moderate  income  customers,  as
    39  defined  by the commission, including those who are already eligible for
    40  the commission's energy affordability program.
    41    (b) In order to ensure that all residential  customers  be  adequately
    42  protected  from  bearing  an  energy  burden greater than six percent of
    43  their household income, the commission may authorize the use of  reason-
    44  able  per-customer  caps  on  the  amount  of  energy  subject  to  such
    45  protections. The commission may  also  establish  a  reasonable  cap  on
    46  collections from ratepayers to fund the commission's energy affordabili-
    47  ty  program  or similar successor programs provided such cap is not less
    48  than three percent of total electric or gas revenues for sales  to  end-
    49  use customers for each utility.
    50    4. Nothing in this article or any other law of New York state shall be
    51  interpreted  or  otherwise  construed  as preempting a municipality from
    52  adopting building codes or other regulations regarding on-site emissions
    53  for new and existing buildings within their localities.
    54    § 7. Subdivision 1 of section 1020-cc of the public  authorities  law,
    55  as  amended  by section 11 of part A of chapter 173 of the laws of 2013,
    56  is amended to read as follows:

        A. 4870--A                          7

     1    1. All contracts of the authority shall be subject to  the  provisions
     2  of  the  state  finance law relating to contracts made by the state. The
     3  authority shall also establish rules and  regulations  with  respect  to
     4  providing  to  its residential gas, electric and steam utility customers
     5  those  rights  and  protections provided in article two and sections one
     6  hundred seventeen and one hundred eighteen of the public service law and
     7  section one hundred thirty-one-s of the social services law.   It  shall
     8  be  a goal of the authority that all residential customers be adequately
     9  protected from bearing an energy burden  greater  than  six  percent  of
    10  their  household  income pursuant to subdivision three of section thirty
    11  of the public service law. The authority shall  conform  to  any  safety
    12  standards  regarding manual lockable disconnect switches for solar elec-
    13  tric generating equipment established by the public  service  commission
    14  pursuant  to  subparagraph (ii) of paragraph (a) of subdivision five and
    15  subparagraph (ii) of paragraph (a)  of  subdivision  five-a  of  section
    16  sixty-six-j of the public service law. The authority shall let contracts
    17  for construction or purchase of supplies, materials, or equipment pursu-
    18  ant  to  section one hundred three and paragraph (e) of subdivision four
    19  of section one hundred twenty-w of the general municipal law.
    20    § 8. Subdivisions 1, 3 and 4 of section 31 of the public service  law,
    21  as  added  by  chapter  713  of  the laws of 1981, are amended and a new
    22  subdivision 4-a is added to read as follows:
    23    1. Every gas corporation, electric corporation or  municipality  shall
    24  provide  residential  service  upon  the  oral  or written request of an
    25  applicant, provided that any  residential  gas  service  shall  only  be
    26  provided in accordance with section thirty of this article, and provided
    27  further  that the commission may require that requests for service be in
    28  writing under circumstances as it deems  necessary  and  proper  as  set
    29  forth by regulation, and provided further that the applicant:
    30    (a)  makes  full payment for residential utility service provided to a
    31  prior account in [his] the applicant's name; or
    32    (b) agrees to make payments under  a  deferred  payment  plan  of  any
    33  amounts due for service to a prior account in [his] the applicant's name
    34  and  makes  a  down  payment  based on criteria to be established by the
    35  commission. No such down payment shall exceed one-half of any money  due
    36  from an applicant for residential utility service, or three months aver-
    37  age billing, whichever is less; or
    38    (c)  is a recipient of public assistance, supplemental security income
    39  or additional state payments pursuant to the social services law, or  is
    40  an  applicant  for  such assistance, income or payments, and the utility
    41  corporation or the municipality receives payment from, or is notified of
    42  the applicant's eligibility for utility payments by the social  services
    43  official  of  the  social services district in which such person resides
    44  for amounts due for service to a prior account in the applicant's  name,
    45  together  with  guarantee of future payments to the extent authorized by
    46  the social services law; and
    47    (d) receives clear, timely information from the gas corporation, elec-
    48  tric corporation,  municipality, or retail energy service company, writ-
    49  ten in plain language, available in the top twelve most common non-Engl-
    50  ish languages spoken by limited  English  proficient  New  Yorkers,  and
    51  approved  by  the  commission after stakeholder input, on incentives and
    52  opportunities for installing energy-efficient electric heating and cool-
    53  ing technologies, weatherization, demand-side management,  and  distrib-
    54  uted energy resource programs.
    55    (e)  nothing in this subdivision shall be construed to prohibit exist-
    56  ing gas customers, in accordance with section thirty of this article and

        A. 4870--A                          8

     1  subject to any other regulations implemented  by  the  commission,  from
     2  reconnecting to the gas distribution system following a gas interruption
     3  due to emergency repairs or remediation of leaking equipment.
     4    3.  Subject  to the requirements of subdivisions four, four-a and five
     5  of this section, and in accordance with section thirty of this  article,
     6  whenever  a  residential  customer  moves  to a new residence within the
     7  service territory of the same utility corporation or municipality,  [he]
     8  the  applicant shall be eligible to receive service at the new residence
     9  and such service shall be considered a continuation of  service  in  all
    10  respects except for the purposes of section thirty of this article, with
    11  any  deferred  payment  agreement  honored,  and with all rights of such
    12  customer and such utility corporation provided  by  this  article  unim-
    13  paired.
    14    4.  In  the case of any application for electric service to a building
    15  which is not supplied with electricity [or gas], a  utility  corporation
    16  or municipality shall be obligated to provide electric service to such a
    17  building,  provided  however, that the commission may require applicants
    18  for service to buildings located in excess of one hundred feet from [gas
    19  or] electric transmission lines to pay or agree in writing to pay  mate-
    20  rial  and  installation  costs relating to the applicant's proportion of
    21  the pipe, conduit, duct or wire, or other facilities to be installed.
    22    4-a. In the case of any application for  gas  service  to  a  building
    23  which  is  not  supplied with gas, a utility corporation or municipality
    24  shall be obligated to provide gas service to such building in accordance
    25  with commission regulation, provided however, that the commission  shall
    26  require  applicants  for gas service to such building to pay or agree in
    27  writing to pay material and installation costs relating to the  pipe  or
    28  other facilities to be installed to enable service to the applicant.
    29    §  9. Section 12 of the transportation corporations law, as separately
    30  amended by chapters 713 and 895 of the laws of 1981, is amended to  read
    31  as follows:
    32    §  12.  [Gas and electricity] Electricity must be supplied on applica-
    33  tion. Except in the case  of  an  application  for  residential  utility
    34  service  pursuant to article two of the public service law, upon written
    35  application of the owner or occupant of any building within one  hundred
    36  feet  of any [main of a gas corporation or gas and electric corporation,
    37  or a] line of an electric corporation or gas and  electric  corporation,
    38  appropriate to the service requested, and payment by [him] the applicant
    39  of  all  money due from [him] the applicant to the corporation, it shall
    40  supply [gas or] electricity as  may  be  required  for  [lighting]  such
    41  building,  notwithstanding  there be rent or compensation in arrears for
    42  gas or electricity supplied,  or  for  meter,  wire,  pipe  or  fittings
    43  furnished,  to  a former occupant thereof, unless such owner or occupant
    44  shall have undertaken or agreed with the former occupant to  pay  or  to
    45  exonerate  [him]  the  former occupant from the payment of such arrears,
    46  and shall refuse or neglect to pay the same; and if for the space of ten
    47  days after such application, and the deposit  of  a  reasonable  sum  as
    48  provided  in the next section, if required, the corporation shall refuse
    49  or neglect to supply gas or [electric light]  electricity  as  required,
    50  such  corporation  shall forfeit and pay to the applicant the sum of ten
    51  dollars, and the further sum of five dollars for  every  day  thereafter
    52  during  which  such  refusal or neglect shall continue; provided that no
    53  such corporation shall be required to lay service pipes or wires for the
    54  purpose of supplying gas or electric light to any  applicant  where  the
    55  ground  in  which  such  pipe  or  wire  is required to be laid shall be
    56  frozen, or shall otherwise present serious obstacles to laying the same;

        A. 4870--A                          9

     1  nor unless the applicant, if required, shall deposit in advance with the
     2  corporation a sum of money sufficient to pay the cost  of  [his  propor-
     3  tion]  the  applicant's  portion  of  the  pipe,  conduit,  duct or wire
     4  required  to  be  installed, and the expense of the installation of such
     5  portion.
     6    § 10. The transportation corporations law is amended by adding  a  new
     7  section 13 to read as follows:
     8    §  13.  Gas must be supplied in accordance with public service commis-
     9  sion rules and regulations. Except in the case  of  an  application  for
    10  residential  utility  service  pursuant  to  article  two  of the public
    11  service law, upon written application of the  owner or occupant  of  any
    12  building within one hundred feet of any main of a gas corporation or gas
    13  and  electric  corporation  appropriate  to  the  service requested, and
    14  payment by the applicant of all money due  from  the  applicant  to  the
    15  corporation,  it  shall  supply gas for such building in accordance with
    16  public service commission regulations, notwithstanding there be rent  or
    17  compensation in arrears for gas supplied, or for meter, pipe or fittings
    18  furnished,  to  a former occupant thereof, unless such owner or occupant
    19  shall have undertaken or agreed with the former occupant to  pay  or  to
    20  exonerate  the  former  occupant  from  the payment of such arrears, and
    21  shall refuse or neglect to pay the same; and if for  the  space  of  ten
    22  days  after  such  application,  and the deposit of a reasonable sum, if
    23  required, the corporation shall refuse  or  neglect  to  supply  gas  as
    24  required  pursuant  to  public service commission rules and regulations,
    25  such corporation shall forfeit and pay to the applicant the sum  of  ten
    26  dollars,  and  the  further sum of five dollars for every day thereafter
    27  during which such refusal or neglect shall continue;  provided  that  no
    28  such  corporation shall be required to lay service pipes for the purpose
    29  of supplying gas to any applicant where the ground in which  such  pipes
    30  are  required  to  be  laid  shall be frozen, or shall otherwise present
    31  serious obstacles to laying the same; nor  unless  the  applicant  shall
    32  deposit in advance with the corporation a sum of money sufficient to pay
    33  the material and installation costs relating to the pipe or other facil-
    34  ities to be installed to enable service to the applicant.
    35    §  11. Section 66 of the public service law is amended by adding a new
    36  subdivision 12-e to read as follows:
    37    12-e. The commission shall review the  capital  construction  plan  of
    38  each  gas  corporation  and  establish a process to examine the feasible
    39  alternatives to such construction in order to achieve  consistency  with
    40  the  climate  justice  and  emission reduction provisions in chapter one
    41  hundred six of the laws of two thousand nineteen, and such successors in
    42  law and function as may arise from time to time, and to align  with  the
    43  statewide affordable gas transition plan pursuant to section sixty-six-y
    44  of  this article. The commission may require participation in such proc-
    45  ess by each electric corporation with a  service  area  overlapping  the
    46  service  area  of the gas corporation, and the commission shall have the
    47  power to require any such electric corporation to participate in  alter-
    48  natives  to gas capital construction, including participation in financ-
    49  ing. Any costs incurred by such electric  corporation  for  such  corpo-
    50  ration's  participation  shall  be  subject  to  an opportunity for full
    51  recovery, as determined by the commission.
    52    § 12. Section 66-b of the public service law is REPEALED.
    53    § 13. The public service law is amended by adding a new  section  66-x
    54  to read as follows:
    55    §  66-x.    Expansion  of  gas  company service territories. Except as
    56  provided in this section, and notwithstanding  any  other  provision  of

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     1  this  chapter, after December thirty-first, two thousand twenty-six, the
     2  commission shall not grant an amendment of a gas  company's  certificate
     3  of public convenience and necessity that expands a gas company's service
     4  territory  in  order  to  extend  gas  plant and the availability of gas
     5  service into geographic areas where gas service was not available  prior
     6  to  such date. The commission may authorize exceptions to the policy set
     7  forth in this section on a case-by-case basis, provided that the commis-
     8  sion finds that the amendment of the certificate of  public  convenience
     9  and  necessity  is  limited  to a project that serves a compelling state
    10  interest, alternatives to gas service are either not technically  feasi-
    11  ble  or  prohibitively expensive, and that the project will be completed
    12  and put into service not later than December thirty-first, two  thousand
    13  twenty-eight.
    14    § 14. Section 66-g of the public service law is REPEALED.
    15    §  15.  Subdivision 1 of section 224-d of the labor law, as amended by
    16  section 31 of part O of chapter 58 of the laws of 2024, is amended and a
    17  new subdivision 9 is added to read as follows:
    18    1. For purposes of this section, a "covered renewable  energy  system"
    19  means  (a) a renewable energy system, as such term is defined in section
    20  sixty-six-p of the public service law, with a capacity of  one  or  more
    21  megawatts  alternating  current  and  which  involves the procurement of
    22  renewable energy credits by a public entity, or a company or corporation
    23  provided in subdivisions twenty-three and twenty-four of section two  of
    24  the  public  service  law, or a third party acting on behalf and for the
    25  benefit of a public entity; (b) any "thermal energy network" as  defined
    26  by subdivision twenty-nine of section two of the public service law; (c)
    27  any  offshore  wind  supply  chain project, including but not limited to
    28  port infrastructure, primary component manufacturing, finished component
    29  manufacturing, subassembly manufacturing, subcomponent manufacturing, or
    30  raw material producers, or a combination thereof receiving direct  fund-
    31  ing  from  the  New York state energy research and development authority
    32  pursuant to an award under a New York state energy research and develop-
    33  ment authority solicitation; [or]  (d)  a  "major  utility  transmission
    34  facility"  as  such term is defined by section one hundred twenty of the
    35  public service law; or  (e)  any  covered  neighborhood  gas  transition
    36  project, as defined by subdivision nine of this section.
    37    9.  For  purposes of this section, a "covered neighborhood gas transi-
    38  tion project" shall mean a project performed by contractors  or  subcon-
    39  tractors  hired  directly  by  a  public  utility company, as defined by
    40  subdivision twenty-three of section two of the public  service  law,  to
    41  ensure  that customers permanently transitioning off utility gas service
    42  as part of a home  energy  affordable  transition  program  pursuant  to
    43  section  sixty-six-z  of the public service law have continued access to
    44  safe and reliable energy services for  heating,  cooling,  cooking,  and
    45  water  heating.  A covered neighborhood gas transition project shall not
    46  include a project performed under private contract with an entity  other
    47  than  a  public  utility  company,  even  if  such  entity or contractor
    48  receives financial and/or technical support from a public utility compa-
    49  ny, including for the purchase and installation of customer-owned equip-
    50  ment.
    51    § 16. Severability. If any word, phrase, clause, sentence,  paragraph,
    52  section, or part of this act shall be adjudged by any court of competent
    53  jurisdiction  to  be invalid, such judgment shall not affect, impair, or
    54  invalidate the remainder thereof, but shall be confined in its operation
    55  to the word, phrase, clause, sentence, paragraph, section, or part ther-
    56  eof directly involved in the controversy in which  such  judgment  shall

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     1  have been rendered. It is hereby declared to be the intent of the legis-
     2  lature  that  this  act  would  have  been  enacted even if such invalid
     3  provisions had not been included herein.
     4    § 17. This act shall take effect immediately.
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