Bill Text: NY A04870 | 2025-2026 | General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
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 62-0)
Status: (Introduced) 2025-02-07 - print number 4870a [A04870 Detail]
Download: New_York-2025-A04870-Introduced.html
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 62-0)
Status: (Introduced) 2025-02-07 - print number 4870a [A04870 Detail]
Download: New_York-2025-A04870-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 4870 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 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 6 from all sectors of New York's economy. The CLCPA also emphasizes equity 7 in addressing climate change by requiring all state agencies and author- 8 ities to prioritize reductions of greenhouse gas emissions and co-pollu- 9 tants in disadvantaged communities and by mandating that certain state 10 investments deliver benefits to these communities. 11 2. Buildings are New York's largest source of greenhouse gas emis- 12 sions, accounting for approximately one-third of the greenhouse gas EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD05559-01-5A. 4870 2 1 emissions in our state. New York state's buildings also produce more 2 local air pollution than any other state in the country, resulting in 3 negative health outcomes such as increased rates of asthma, particularly 4 among children, and heart disease. Therefore, reducing greenhouse gas 5 emissions and toxic air pollution emitted from New York's buildings, 6 especially in disadvantaged communities, is necessary to meet the CLCPA 7 mandates. 8 3. To meet the state's bold climate and equity mandates, New York will 9 need to update how it regulates gas utility service. Doing so will 10 enable strategic planning and investments in neighborhood-scale building 11 decarbonization and help bring the statewide gas distribution system 12 into alignment with the two thousand thirty and two thousand fifty 13 greenhouse gas emission reduction mandates in the CLCPA through an 14 orderly and equitable process, coordinated with appropriate investments 15 in the electric system to ensure all New Yorkers have non-discriminato- 16 ry, affordable access to the energy needed for heating, cooling, and 17 powering the buildings in which they live and work. 18 4. The New York public service law not only contains barriers to 19 neighborhood-scale building decarbonization solutions such as thermal 20 energy networks, but also works at cross purposes with the state's 21 climate and affordability goals, by requiring and subsidizing the 22 continued expansion of natural gas infrastructure. 23 a. The gas utility obligation to serve codified in the public service 24 law is a major obstacle to utilities developing neighborhood-scale 25 building decarbonization projects that would facilitate bringing the gas 26 system into alignment with the two thousand thirty and two thousand 27 fifty greenhouse gas emission reduction mandates in the CLCPA in a 28 manner that can mitigate costs for all utility customers, reduces green- 29 house gas emissions and co-pollutants impacting local air quality, and 30 provides a transition for impacted workers. 31 b. Statutorily mandated utility system extension allowances require 32 existing ratepayers to subsidize gas infrastructure hookups for new 33 customers. According to a recent joint filing with the Public Service 34 Commission by the New York state gas utilities, these required allow- 35 ances cost gas utilities hundreds of millions of dollars per year. 36 These costs are passed directly to existing gas customers. 37 c. Gas utilities in New York are on track to collectively spend $150 38 billion to replace thousands of miles of leak prone pipe in the coming 39 years. These investments pose a risk of becoming stranded assets, with 40 $77 billion of the total cost coming due after 2050, but can be avoided 41 in many cases by strategically investing in neighborhood-scale decarbon- 42 ization projects. 43 5. New Yorkers are suffering from dramatic fossil fuel price spikes 44 driven by the increasingly integrated global commodity market, subject 45 to the whims of foreign dictators such as Russia's Vladimir Putin or 46 Saudi Arabia's Prince Mohammed bin Salman. Fossil fuel prices have 47 spiked to historic high levels, making both electricity and gas utility 48 service unaffordable for many New Yorkers. Decarbonizing buildings 49 through the strategic development of neighborhood-scale building decar- 50 bonization projects, along with investing in energy efficiency and 51 renewable electricity, will save New Yorkers money now and in the 52 future, protect against price volatility, and promote true energy inde- 53 pendence for New York state. 54 6. Fossil fuel price spikes are exacerbating the affordability impacts 55 of the COVID-19 Pandemic. Over a million households in New York now 56 struggle to pay their utility bills. The Public Service Commission hasA. 4870 3 1 declared, but not yet achieved, a goal that customers should not pay 2 more than 6% of their income for utility energy services, a number based 3 on a nationally accepted standard. 4 7. Thus, it is the intent of the legislature to enact the NY Home 5 Energy Affordable Transition Act for the following purposes: 6 a. to ensure that the public service law regarding regulation and 7 oversight of gas utilities will provide for the timely and strategic 8 decarbonization and right-sizing of the gas distribution system in a 9 just and affordable manner as required to meet the climate justice and 10 emission reduction mandates of the CLCPA, appropriately balancing rate- 11 payers' needs and interests with the maintenance of financially sound 12 utilities, prioritizing low-to-moderate income customers and disadvan- 13 taged communities, and encouraging neighborhood-scale transitions; 14 b. to provide the Public Service Commission with the statutory author- 15 ity and direction to align utility regulations and planning with the 16 CLCPA climate justice and emission reduction mandates and to require the 17 Public Service Commission to take a proactive role in the timely iden- 18 tification and amendment of such regulations or rulings as may pose an 19 impediment to achieving CLCPA mandates, and to identify any laws that 20 may pose an impediment; 21 c. to maintain the affordability of services for all utility custom- 22 ers, create good paying, family sustaining jobs, and facilitate achieve- 23 ment of the CLCPA climate justice and emission reduction mandates by 24 enabling gas utilities to minimize the need for new investments in gas 25 infrastructure; 26 d. to facilitate a well-planned and strategic downsizing of the gas 27 system by redirecting ratepayer funds that would have been spent on 28 costly new investments to maintain or expand the gas system to instead 29 fund job-creating neighborhood-scale decarbonization projects that 30 provide alternative clean energy solutions for efficient heating, cool- 31 ing, cooking, hot water, and other uses that effectively transition 32 customers away from dependence on fuels with greenhouse gas emissions 33 and equipment that produces on-site co-pollutant emissions; 34 e. to end statutorily mandated, ratepayer-subsidized incentives for 35 the expansion of fossil fuel infrastructure while maintaining the equi- 36 table provision of electric service for efficient heating, cooling, 37 cooking, hot water, and other uses; 38 f. to provide affordable access to electricity for heating and cooling 39 and to protect low-income and moderate-income customers from undue 40 burdens as they decarbonize their buildings; and 41 g. to clarify that municipal building codes regulating on-site emis- 42 sions are not preempted under New York state law. 43 8. Transitioning gas customers to alternative heating and cooling 44 services is likely to be most cost-effective from the perspective of 45 individual customers and New York state as a whole if undertaken as part 46 of a neighborhood-scale project. Such projects would help minimize 47 stranded costs in gas system infrastructure and support coordinated 48 investments on the part of customers, utilities, and others, potentially 49 including but not limited to electrification make-ready measures, equip- 50 ment located on the premises of customers, and thermal energy networks. 51 9. This legislation does not establish a ban on the use of gas. It is 52 neither the intent nor would it be the effect of this legislation to 53 require the immediate transition of existing gas customers to alterna- 54 tive heating and cooling services. 55 § 3. Subdivision 1 of section 4 of the public service law, as amended 56 by chapter 594 of the laws of 2021, is amended to read as follows:A. 4870 4 1 1. There shall be in the department of public service a public service 2 commission, which shall possess the powers and duties hereinafter speci- 3 fied, and also all powers necessary or proper to enable it to carry out 4 the purposes of this chapter and to enable achievement of the climate 5 justice and emission reduction mandates in chapter one hundred six of 6 the laws of two thousand nineteen, and such successors in law and func- 7 tion as may arise from time to time. The commission shall consist of 8 five members, to be appointed by the governor, by and with the advice 9 and consent of the senate. A commissioner shall be designated as [chair-10man] chairperson of the commission by the governor to serve in such 11 capacity at the pleasure of the governor or until [his] the commission- 12 er's term [as commissioner] expires whichever first occurs. At least one 13 commissioner shall have experience in utility consumer advocacy. No more 14 than three commissioners may be members of the same political party 15 unless, pursuant to action taken under subdivision two of this section, 16 the number of commissioners shall exceed five, and in such event no more 17 than four commissioners may be members of the same political party. 18 § 4. Subdivisions 1 and 2 of section 5 of the public service law, 19 subdivision 1 as amended and subdivision 2 as added by chapter 155 of 20 the laws of 1970, paragraph i of subdivision 1 as added by chapter 375 21 of the laws of 2022, are amended to read as follows: 22 1. The jurisdiction, supervision, powers and duties of the public 23 service commission shall extend under this chapter: 24 [b.] a. To the manufacture, conveying, transportation, sale or 25 distribution of gas (natural or manufactured or mixture of both) and 26 electricity for light, heat, cooling, or power, to gas plants and to 27 electric plants and to the persons or corporations owning, leasing or 28 operating the same. 29 [c.] b. To the manufacture, holding, distribution, transmission, sale 30 or furnishing of steam for heat or power, to steam plants and to the 31 persons or corporations owning, leasing or operating the same. 32 [d.] c. To every telephone line which lies wholly within the state and 33 that part within the state of New York of every telephone line which 34 lies partly within and partly without the state and to the persons or 35 corporations owning, leasing or operating any such telephone line. 36 [e.] d. To every telegraph line which lies wholly within the state and 37 that part within the state of New York of every telegraph line which 38 lies partly within and partly without the state and to the persons or 39 corporations owning, leasing or operating any such telegraph line. 40 [f.] e. To the furnishing or distribution of water for domestic, 41 commercial or public uses and to water systems and to the persons or 42 corporations owning, leasing or operating the same. 43 [g.] f. To every stock yard within the state and to the stock yard 44 company owning, leasing or operating the same, to the same extent and in 45 respect to the same objects and purposes as such jurisdiction extends, 46 under this chapter, to depots, freight houses and shipping stations of a 47 common carrier, including the duty of such stock yard company to submit 48 reports and be subjected to investigation as if it were a common carri- 49 er, and the powers and duties of such commission to fix charges and make 50 and enforce orders relating to adequate service by such company. 51 [h.] g. A corporation or person owning or holding a majority of the 52 stock of a common carrier, gas corporation or electrical corporation 53 subject to the jurisdiction of the public service commission shall be 54 subject to the supervision of the public service commission in respect 55 of the relations between such common carrier, gas corporation or elec- 56 trical corporation and such owners or holders of a majority of the stockA. 4870 5 1 thereof in so far as such relations arise from or by reason of such 2 ownership or holding of stock thereof or the receipt or holding of any 3 money or property thereof or from or by reason of any contract between 4 them; and in respect of such relations shall in like manner and to the 5 same extent as such common carrier, gas corporation or electrical corpo- 6 ration be subject to examination of accounts, records and memoranda, and 7 shall furnish such reports and information as the public service commis- 8 sion shall from time to time direct and require, and shall be subject to 9 like penalties for default therein. 10 [i.] h. To thermal energy provided by gas corporations, electric 11 corporations, or combination gas and electric corporations. 12 2. The commission shall encourage all persons and corporations subject 13 to its jurisdiction to formulate and carry out long-range programs, 14 individually or cooperatively, for the performance of their public 15 service responsibilities, including the achievement of 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, with economy, efficiency, and care 19 for the public safety, the preservation of environmental values and the 20 conservation of natural resources. 21 § 5. Section 30 of the public service law, as amended by chapter 686 22 of the laws of 2002, is amended to read as follows: 23 § 30. Residential gas, electric and steam service policy. 1. This 24 article shall apply to the provision of all or any part of the gas, 25 electric or steam service provided to any residential customer by any 26 gas, electric or steam and municipalities corporation or municipality. 27 It is hereby declared to be the policy of this state that the continued 28 provision of [all or any part of such gas,] electric and steam [service] 29 services to all residential customers without unreasonable qualifica- 30 tions or lengthy delays is necessary for the preservation of the health 31 and general welfare, is consistent with the achievement of the state's 32 climate justice and emission reduction mandates, and is in the public 33 interest. It is further the policy of this state that electric and 34 steam services to all residential customers, and gas service for exist- 35 ing residential customers must be provided in a manner that is safe and 36 adequate, not unjustly discriminatory or unduly preferential, and in all 37 respects just and reasonable, while providing for an orderly right-siz- 38 ing of the gas distribution system to achieve consistency with the 39 climate justice and emission reduction mandates in chapter one hundred 40 six of the laws of two thousand nineteen, and such successors in law and 41 function as may arise from time to time, encouraging neighborhood-scale 42 transitions and the elimination of on-site co-pollutants. 43 2. The commission shall regulate for the continued provision of gas 44 service to all existing residential customers who choose to continue 45 such service, unless such service is discontinued pursuant to a program 46 approved by the commission. Such programs shall ensure that any transi- 47 tioning customer has access to: 48 (a) safe and reliable substitutes for heating, cooling, cooking, and 49 water-heating prior to a cessation of gas service; and 50 (b) necessary and appropriate financial and technical support, includ- 51 ing for the purchase and installation of customer-owned equipment. 52 3. (a) It shall be a goal of the commission that all residential 53 customers be adequately protected from bearing an energy burden greater 54 than six percent of their household income, prioritizing low-to-moderate 55 income customers, including those who are already eligible for the 56 commission's energy affordability program. The commission may authorizeA. 4870 6 1 the use of reasonable per-customer caps on the amount of energy subject 2 to the affordability protections of this subdivision. The commission may 3 also establish a reasonable cap on collections from ratepayers to fund 4 the commission's energy affordability program or similar successor 5 programs provided such cap is not less than 3% of total electric or gas 6 revenues for sales to end-use customers for each utility. 7 (b) Within one year of the effective date of this subdivision, the 8 commission shall develop a plan to implement the goal under paragraph 9 (a) of this subdivision. In developing such plan, the commission shall 10 evaluate available tools, including but not limited to bill discounts, 11 bill credits, redirection of avoided costs of utility infrastructure, 12 rate making strategies, energy efficiency, distributed renewable energy, 13 and potential budgetary measures, prioritizing mitigation of rate 14 increases on residential customers. Beginning in the calendar year 15 following the effective date of this subdivision, and continuing annual- 16 ly on or before October first, the commission shall report to the gover- 17 nor and legislature on the actions it has taken, including the plan 18 developed pursuant to this paragraph, and the progress that has been 19 made toward achieving the goal laid out in paragraph (a) of this subdi- 20 vision. Such report shall include but not be limited to recommendations 21 regarding any additional legislative or budgetary measures necessary to 22 achieve such goal. The annual report shall also be published on the 23 commission's website. 24 4. For the purposes of this section, the term "low-to-moderate income 25 customers" shall mean households with annual incomes at or below eighty 26 percent of the state median income. 27 § 6. Subdivision 1 of section 1020-cc of the public authorities law, 28 as amended by section 11 of part A of chapter 173 of the laws of 2013, 29 is amended to read as follows: 30 1. All contracts of the authority shall be subject to the provisions 31 of the state finance law relating to contracts made by the state. The 32 authority shall also establish rules and regulations with respect to 33 providing to its residential gas, electric and steam utility customers 34 those rights and protections provided in article two and sections one 35 hundred seventeen and one hundred eighteen of the public service law and 36 section one hundred thirty-one-s of the social services law. It shall 37 be a goal of the authority that all residential customers be adequately 38 protected from bearing an energy burden greater than six percent of 39 their household income pursuant to subdivision three of section thirty 40 of the public service law. The authority shall conform to any safety 41 standards regarding manual lockable disconnect switches for solar elec- 42 tric generating equipment established by the public service commission 43 pursuant to subparagraph (ii) of paragraph (a) of subdivision five and 44 subparagraph (ii) of paragraph (a) of subdivision five-a of section 45 sixty-six-j of the public service law. The authority shall let contracts 46 for construction or purchase of supplies, materials, or equipment pursu- 47 ant to section one hundred three and paragraph (e) of subdivision four 48 of section one hundred twenty-w of the general municipal law. 49 § 7. Subdivisions 1, 3 and 4 of section 31 of the public service law, 50 as added by chapter 713 of the laws of 1981, are amended to read as 51 follows: 52 1. Every gas corporation, electric corporation or municipality shall 53 provide residential service upon the oral or written request of an 54 applicant, provided that any residential gas service shall only be 55 provided in accordance with section thirty of this article and is 56 subject to any orders or regulations limiting or discontinuing gasA. 4870 7 1 service that are implemented by the commission to facilitate the 2 achievement of consistency with the climate justice and emission 3 reduction mandates in chapter one hundred six of the laws of two thou- 4 sand nineteen, and such successors in law and function as may arise from 5 time to time, and provided further that the commission may require that 6 requests for service be in writing under circumstances as it deems 7 necessary and proper as set forth by regulation, and provided further 8 that the applicant: 9 (a) makes full payment for residential utility service provided to a 10 prior account in [his] the applicant's name; or 11 (b) agrees to make payments under a deferred payment plan of any 12 amounts due for service to a prior account in [his] the applicant's name 13 and makes a down payment based on criteria to be established by the 14 commission. No such down payment shall exceed one-half of any money due 15 from an applicant for residential utility service, or three months aver- 16 age billing, whichever is less; or 17 (c) is a recipient of public assistance, supplemental security income 18 or additional state payments pursuant to the social services law, or is 19 an applicant for such assistance, income or payments, and the utility 20 corporation or the municipality receives payment from, or is notified of 21 the applicant's eligibility for utility payments by the social services 22 official of the social services district in which such person resides 23 for amounts due for service to a prior account in the applicant's name, 24 together with guarantee of future payments to the extent authorized by 25 the social services law; and 26 (d) receives clear, timely information from the gas corporation, elec- 27 tric corporation, municipality, or retail energy service company, writ- 28 ten in plain language, available in the top twelve most common non-Engl- 29 ish languages spoken by limited English proficient New Yorkers, and 30 approved by the commission after stakeholder input, on incentives and 31 opportunities for installing, energy-efficient electric heating and 32 cooling technologies, weatherization, demand-side management, and 33 distributed energy resource programs. 34 (e) nothing in this subdivision shall be construed to prohibit exist- 35 ing gas customers, in accordance with section thirty of this article and 36 subject to any other regulations implemented by the commission, from 37 reconnecting to the gas distribution system following a gas interruption 38 due to emergency repairs or remediation of leaking equipment. 39 3. Subject to the requirements of subdivisions four and five of this 40 section, and in accordance with section thirty of this article, whenever 41 a residential customer moves to a new residence within the service 42 territory of the same utility corporation or municipality, [he] the 43 applicant shall be eligible to receive service at the new residence and 44 such service shall be considered a continuation of service [in all45respects] as operationally feasible based on infrastructure and commod- 46 ity availability at the site of the new residence, with any deferred 47 payment agreement honored, and with all rights of such customer and such 48 utility corporation provided by this article unimpaired. 49 4. In the case of any application for service to a building which is 50 not supplied with electricity or gas, a utility corporation or munici- 51 pality shall be obligated to provide electric service to such a build- 52 ing, and to provide gas service for such a building in accordance with 53 commission regulation, provided however, that the commission may require 54 applicants for service to buildings [located in excess of one hundred55feet from gas or electric transmission lines] to pay or agree in writing 56 to pay material and installation costs relating to the applicant'sA. 4870 8 1 proportion of the pipe, conduit, duct or wire, or other facilities to be 2 installed. 3 § 8. Section 12 of the transportation corporations law, as separately 4 amended by chapters 713 and 895 of the laws of 1981, is amended to read 5 as follows: 6 § 12. Gas and electricity must be supplied on application in accord- 7 ance with commission rules and regulations. Except in the case of an 8 application for residential utility service pursuant to article two of 9 the public service law, upon written application of the owner or occu- 10 pant of any building [within one hundred feet of any main of a gas11corporation or gas and electric corporation, or a line of an electric12corporation or gas and electric corporation, appropriate to the service13requested,] and payment by [him] the applicant of all money due from 14 [him] the applicant to the corporation, it shall supply [gas or] elec- 15 tricity as may be required for [lighting] such building and it may 16 provide gas for such building in accordance with commission regulation, 17 notwithstanding there be rent or compensation in arrears for gas or 18 electricity supplied, or for meter, wire, pipe or fittings furnished, to 19 a former occupant thereof, unless such owner or occupant shall have 20 undertaken or agreed with the former occupant to pay or to exonerate 21 [him] them from the payment of such arrears, and shall refuse or neglect 22 to pay the same; and if for the space of ten days after such applica- 23 tion, and the deposit of a reasonable sum as provided in the next 24 section, if required, the corporation shall refuse or neglect to supply 25 gas or [electric light] electricity as required, such corporation shall 26 forfeit and pay to the applicant the sum of ten dollars, and the further 27 sum of five dollars for every day thereafter during which such refusal 28 or neglect shall continue; provided that no such corporation shall be 29 required to lay service pipes or wires for the purpose of supplying gas 30 or electric light to any applicant where the ground in which such pipe 31 or wire is required to be laid shall be frozen, or shall otherwise pres- 32 ent serious obstacles to laying the same; nor unless the applicant, if 33 required, shall deposit in advance with the corporation a sum of money 34 sufficient to pay the cost of [his proportion] the applicant's portion 35 of the pipe, conduit, duct or wire required to be installed, and the 36 expense of the installation of such portion. 37 § 9. Subdivision 2 of section 66 of the public service law, as amended 38 by chapter 877 of the laws of 1953, is amended and a new subdivision 39 12-e is added to read as follows: 40 2. Investigate and ascertain, from time to time, the quality of gas 41 supplied by persons, corporations and municipalities; examine or inves- 42 tigate the methods employed by such persons, corporations and munici- 43 palities in manufacturing, distributing and supplying gas or electricity 44 for light, heat, cooling, or power and in transmitting the same, and 45 have power to order such reasonable improvements as will best promote 46 the public interest, preserve the public health and protect those using 47 such gas or electricity and those employed in the manufacture and 48 distribution thereof, and have power to order reasonable improvements 49 and extensions of the works, wires, poles, lines, conduits, ducts and 50 other reasonable devices, apparatus and property of gas corporations, 51 electric corporations and municipalities; and have power after an inves- 52 tigation and a hearing to order any corporation having authority under 53 any general or special law or under any charter or franchise, to lay 54 down, erect or maintain wires, pipes, conduits, ducts or other fixtures 55 in, over or under the streets, highways and public places of any munici- 56 pality for the purpose of supplying, selling or distributing naturalA. 4870 9 1 gas, to augment its supply of natural gas, whenever the commission deems 2 necessary and whenever artificial gas can be reasonably obtained, by 3 acquiring by purchase, manufacture or otherwise a supply thereof to be 4 mixed with such natural gas, in order to render adequate service to the 5 customers of such corporation or to maintain a proper and uniform pres- 6 sure; and have power after an investigation and a hearing to order any 7 corporation having authority under any general or special law or under 8 any charter or franchise, to lay down, erect or maintain wires, pipes, 9 conduits, ducts or other fixtures in, over or under the streets, high- 10 ways and public places of any municipality for the purpose of supplying, 11 selling or distributing artificial gas, to augment its supply of artifi- 12 cial gas, whenever the commission deems necessary and whenever natural 13 gas can be reasonably obtained, by acquiring by purchase or otherwise a 14 supply thereof to be mixed with such artificial gas, in order to render 15 adequate service to the customers of such corporation or to maintain a 16 proper and uniform pressure; and to fix such rate for the supplying of 17 mixed gas as shall secure to such corporation a fair return; and may 18 order the curtailment or discontinuance of the use of natural gas for 19 manufacturing or industrial purposes, for periods aggregating not to 20 exceed four months in any calendar year, if it is established to the 21 satisfaction of the commission that the supply of natural gas is not 22 adequate to meet the reasonable demands of domestic consumption and may 23 [prohibit the use of natural gas in wasteful devices and practices] 24 order the curtailment or discontinuance of the use of the distribution 25 system, where the commission has determined that such curtailment or 26 discontinuance is reasonably required to implement state energy policy, 27 provided that such curtailment or discontinuance shall be consistent 28 with programs approved by the commission pursuant to subdivision two of 29 section thirty of this chapter, and may prohibit the use of natural gas 30 in wasteful devices and practices, as defined by the commission, and 31 require conservation and efficiency in gas usage. 32 12-e. The commission shall review the capital construction plan of 33 each gas corporation and establish a process to examine feasible alter- 34 natives to such construction in order to achieve consistency with the 35 climate justice and emission reduction mandates in chapter one hundred 36 six of the laws of two thousand nineteen, and such successors in law and 37 function as may arise from time to time, encouraging neighborhood-scale 38 transitions and the elimination of on-site co-pollutant emissions. Such 39 process shall include thresholds and criteria for the types of projects 40 subject to such examination. The commission shall require participation 41 in such process by each electric corporation with a service area over- 42 lapping the service area of the gas corporation; and the commission 43 shall have the power to require any such electric corporation to partic- 44 ipate in alternatives to gas capital construction, including partic- 45 ipation in financing. Any costs incurred by such electric corporation 46 for such corporation's participation shall be subject to an opportunity 47 for full recovery, as determined by the commission. 48 § 10. Section 66-a of the public service law, as added by chapter 7 of 49 the laws of 1948, subdivision 1 as amended and subdivision 3 as added by 50 chapter 582 of the laws of 1975, and subdivision 2 as amended by chapter 51 722 of the laws of 1977, is amended to read as follows: 52 § 66-a. Conservation of gas, declaration of policy, delegation of 53 power. 1. It is hereby declared to be the policy of this state that 54 when there develops in any area a situation under which a gas corpo- 55 ration supplying gas to such area is unable to meet the reasonable needs 56 of its consumers and of persons or corporations applying for new orA. 4870 10 1 additional gas service, the available supply of gas shall be allocated 2 among the customers of such gas corporation, in such manner as may be 3 necessary to protect public health and safety and to avoid undue hard- 4 ship, particularly for low-to-moderate income residential customers, 5 electric generation needed for electric system reliability, and custom- 6 ers with hard-to-electrify industrial and commercial uses, pursuant to 7 rules and regulations as may be adopted by the commission, and that to 8 carry out this declared policy the jurisdiction of the public service 9 commission should be clarified. It is further declared to be the policy 10 of this state that gas service to existing customers must be provided in 11 a manner that is safe and adequate, not unjustly discriminatory or undu- 12 ly preferential, and in all respects just and reasonable, subject to the 13 provisions of section thirty of this chapter. 14 2. Notwithstanding the provisions of any statute or any franchise held 15 by a gas corporation, the commission shall have power, upon the finding 16 that continued gas service is not consistent with the achievement of the 17 climate justice and emission reduction mandates in chapter one hundred 18 six of the laws of two thousand nineteen, and such successors in law and 19 function as may arise from time to time, or that there exists such a 20 shortage of gas in any area in the state, that the gas corporation 21 supplying such area is unable and will be unable to secure or produce 22 sufficient gas to meet the reasonable needs of its customers and of 23 persons or corporations applying for new or additional gas service, to 24 require such corporation to immediately discontinue the supplying of gas 25 to additional customers or of supplying additional service to present 26 customers, for such purpose or purposes as may be designated by the 27 commission, or to customers using gas for a purpose prohibited by the 28 commission pursuant to this act, and that upon the finding that the 29 supply of gas available is and will be insufficient to supply the 30 demands of all consumers receiving service, to require such gas corpo- 31 ration to curtail or discontinue service to any or all classes of 32 customers of such gas corporation. In imposing such a direction or 33 requirement, the commission shall give consideration first to existing 34 domestic uses and uses deemed to be necessary by the commission to 35 protect public health and safety and to avoid undue hardship [and shall36be limited to the period of the emergency provided that the gas corpo-37ration affected shall make such restriction, curtailing or discontin-38uance applicable to all customers or applicants for service in a like39class. If the commission determines that good cause exists for supplying40service to additional customers or for supplying additional service to41some existing customers, notwithstanding the curtailment or discontin-42uance of service to other existing customers, it shall, to the extent43feasible, allocate gas with equal priority to new or additional domestic44uses of gas and commercial or industrial processes which require gas45because there is no practical substitute for it in such proportion as46the commission determines to be reasonable. Provided that the commis-47sion shall be permitted, after public hearing, to authorize any natural48gas produced from lands under the waters of Lake Erie to be used for49process or feedstock requirements]. The commission is authorized to 50 adopt such rules, regulations and orders as are necessary or appropriate 51 to carry out these delegated powers. 52 3. In carrying out the delegated powers provided for in this section, 53 the commission shall, to the extent practicable, determine and establish 54 gas conservation measures or standards, including energy efficient elec- 55 trification of gas end uses. The commission may require compliance with 56 such measures or standards as a condition of receiving service.A. 4870 11 1 4. The commission shall determine conditions under which new or addi- 2 tional gas service is warranted notwithstanding the need to conserve 3 resources for service to existing gas customers. Such determination 4 shall be consistent with the achievement of the climate justice and 5 emission reduction mandates in chapter one hundred six of the laws of 6 two thousand nineteen, and such successors in law and function as may 7 arise from time to time, and may take into account factors including 8 economic development, impacts on new and existing customers including 9 low-to-moderate income customers, impacts on system safety and adequacy, 10 equity toward existing customers with limited conversion alternatives, 11 and the feasibility of neighborhood-scale alternatives to usage of fuels 12 with greenhouse gas emissions and on-site co-pollutants, including ther- 13 mal energy networks. 14 5. The commission shall require gas and/or electric utilities to 15 provide coordination assistance and financial assistance, in such forms 16 as the commission deems reasonably required to implement state energy 17 policy, to identify and adopt alternatives where applications for new or 18 additional gas service are denied and encourage neighborhood-scale tran- 19 sitions. 20 § 11. Section 66-b of the public service law is REPEALED. 21 § 12. The public service law is amended by adding a new section 66-x 22 to read as follows: 23 § 66-x. Expansion of gas company service territories. Except as 24 provided in this section, and notwithstanding any other provision of 25 this chapter, after December thirty-first, two thousand twenty-five, the 26 commission shall not grant an amendment of a gas company's certificate 27 of public convenience and necessity that expands a gas company's service 28 territory in order to extend gas plant and the availability of gas 29 service into geographic areas where gas service was not available prior 30 to such date. The commission may authorize exceptions to the policy set 31 forth in this section on a case-by-case basis, provided that the commis- 32 sion finds that the amendment of the certificate of public convenience 33 and necessity is limited to a project that serves a compelling state 34 interest, alternatives to gas service are either not technically feasi- 35 ble or prohibitively expensive, and that the project will be completed 36 and put into service not later than December thirty-first, two thousand 37 twenty-eight. 38 § 13. Section 66-g of the public service law is REPEALED. 39 § 14. The public service law is amended by adding a new section 77-a 40 to read as follows: 41 § 77-a. Aligning utility regulation with climate justice and emission 42 reduction mandates. 1. Within three months of the effective date of 43 this section, the commission shall initiate a proceeding, or multiple 44 proceedings, as it deems appropriate, to consider and act on the matters 45 identified in this section in order to better align its regulation of 46 utility services with the timely achievement, of 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. If the commission is already 50 engaged in a proceeding addressing one or more of the matters identi- 51 fied in this section, it shall not be required to open a new proceeding 52 on that matter. Following completion of all proceedings initiated 53 pursuant to this section, the commission shall initiate regular subse- 54 quent proceedings, as it deems necessary, to ensure the achieve- 55 ment of the goals outlined in this section. The proceeding or 56 proceedings shall include:A. 4870 12 1 (a) Within one year of the effective date of this section, a review of 2 the public service law and its current rules and policy guidance to 3 identify any law, rule, guidance, or lack thereof, that may inhibit 4 timely, equitable achievement of consistency with the climate 5 justice and emission reduction mandates in chapter one hundred six of 6 the laws of two thousand nineteen, and such successors in law and func- 7 tion as may arise from time to time. The commission shall report to the 8 legislature its progress and findings, identify subsequent actions it 9 will take, and make recommendations for any statutory amendments, or 10 budgetary or other actions that may be needed to facilitate the timely 11 achievement of such mandates. 12 (b) Within one year of the effective date of this section, a revision 13 of the commission's rules and regulations for determining appropriate 14 allowances for the extension of gas and electric utility services to 15 ensure that utility service is provided in a manner consistent with the 16 achievement of the climate justice and emission reduction mandates in 17 chapter one hundred six of the laws of two thousand nineteen, and such 18 successors in law and function as may arise from time to time. In estab- 19 lishing rules governing the allowance for the extension of gas service, 20 the commission shall eliminate all main and service line extension 21 allowances for gas service and may increase allowances for electric 22 service. The commission may establish rules that provide for distinct 23 electric allowances for all-electric customers and for dual-fuel custom- 24 ers and may provide additional electric allowances to buildings that are 25 made ready for beneficial electric loads such as those with electric 26 vehicle charging facilities and grid interactive buildings. The commis- 27 sion may also establish allowances for buildings seeking interconnection 28 with thermal energy networks. 29 (c) In order to minimize long-term costs and stranded assets, and 30 maximize savings and benefits for customers, within one year of the 31 effective date of this section the commission shall issue an order 32 requiring each gas corporation, within one hundred eighty days of the 33 issuance of such order, to restructure its plan for addressing the leak- 34 prone gas mains and service lines on its system to facilitate the order- 35 ly right-sizing of the gas distribution system to achieve consistency 36 with the climate justice and emission reduction mandates in chapter one 37 hundred six of the laws of two thousand nineteen, and such successors in 38 law and function as may arise from time to time, while maintaining safe- 39 ty and reliability of the gas system, subject to all relevant federal 40 laws and regulations. To accomplish this, the commission shall require 41 each gas corporation, in coordination with any and all electric corpo- 42 rations with overlapping service areas, to pursue programs pursuant to 43 subdivision two of section thirty of this chapter that minimize the 44 replacement of leak-prone gas mains and service lines. The commission 45 shall require each gas corporation, after notice and comment, to estab- 46 lish criteria for evaluating whether specific segments of leak-prone 47 mains and service lines are candidates for such programs and to evalu- 48 ate their entire inventory of leak-prone pipes to create a strategic 49 decommissioning ranking in which it ranks the segments in terms of the 50 ability to electrify all customers served by the segment and retire the 51 gas distribution infrastructure. The commission shall require each gas 52 corporation to file an annual report that provides a qualitative and 53 quantitative assessment of the reduction of leak-prone pipe inventory 54 and that updates the strategic decommissioning ranking from the prior 55 year. The commission shall establish notice requirements and consumer 56 and affordability protections in accordance with section thirty of thisA. 4870 13 1 chapter applicable to customers served by segments of the gas distrib- 2 ution system targeted for decommissioning. 3 (d) In order to maximize the cost savings and benefits of the transi- 4 tion of the electric system for the equitable, orderly, and affordable 5 achievement of consistency with the climate justice and emission 6 reduction mandates in chapter one hundred six of the laws of two thou- 7 sand nineteen, and such successors in law and function as may arise from 8 time to time, within one year of the effective date of this section the 9 commission shall issue an order requiring all electric corporations to 10 pursue all available electric energy efficiency and demand flexibility 11 measures that are cost-effective, reliable, and feasible. No less 12 frequently than every three years, the commission shall identify the 13 statewide achievable potential for energy efficiency and demand flexi- 14 bility measures for the subsequent ten-year period and establish annual 15 energy efficiency and demand flexibility targets for each electric 16 corporation that are no lower than its proportional share of the state- 17 wide achievable potential. 18 (e) Within one year of the effective date of this section, the commis- 19 sion shall complete a proceeding to develop and issue a report evaluat- 20 ing and considering rate making strategies to encourage and facilitate 21 achievement of the climate justice and emission reduction mandates in 22 chapter one hundred six of the laws of two thousand nineteen, and such 23 successors in law and function as may arise from time to time. The 24 report shall explore options for developing and assessing the impacts of 25 rates for electric, gas, steam, and thermal energy networks on total 26 customer energy costs, and shall explore options for integrating cost 27 sharing and recovery across utilities and services. The report shall 28 also identify statutory barriers to the implementation of such strate- 29 gies. In considering such rate making strategies, the commission shall 30 have a goal of ensuring that all residential customers be adequately 31 protected from bearing an energy burden greater than six percent of 32 their household income pursuant to subdivision three of section thirty 33 of this chapter. 34 (f) Within one year of the effective date of this section, the commis- 35 sion shall determine, based on the best available information, the 36 greenhouse gas emission reductions necessary to bring the statewide gas 37 distribution system into alignment with the statewide two thousand thir- 38 ty and two thousand fifty greenhouse gas emission reduction targets in 39 chapter one hundred six of the laws of two thousand nineteen, and such 40 successors in law and function as may arise from time to time, and set 41 interim emission reduction targets for each gas utility as well as 42 developing a periodic process to review and update such targets; 43 (g) Within one year of the effective date of this section, the commis- 44 sion shall revise its rules and regulations for conducting benefit-cost 45 analyses so that the methodology and the base financial and framework 46 assumptions for the analysis support achievement of the climate justice 47 and emission reduction mandates in chapter one hundred six of the laws 48 of two thousand nineteen, and such successors in law and function as may 49 arise from time to time. Such revisions shall include, but not be 50 limited to: 51 (1) Greenhouse gas emission reduction mandates shall be used as a 52 constraint in designing the scenarios to be analyzed such that all the 53 scenarios shall comply with the statutory greenhouse gas emission 54 requirements and any interim targets set by the department of environ- 55 mental conservation or the commission in order to internalize the cost 56 of achieving such targets in the benefit-cost analysis.A. 4870 14 1 (2) Quantification of public health impacts from improvements in ambi- 2 ent and indoor air quality. When quantitative metrics are not possible, 3 qualitative analysis shall be included. 4 (3) Consideration of the significant uncertainties and risks associ- 5 ated with different scenarios, including the environmental impact of 6 leaked gas, the prolonged reliance on the gas system that results from 7 long-lived investments in gas infrastructure and gas-consuming equip- 8 ment, the positive option value associated with measures that can elimi- 9 nate or defer the need for investments in gas infrastructure and gas- 10 consuming equipment, and potential challenges associated with full 11 electrification. 12 (4) In instances where an alternative fuel has an environmental attri- 13 bute, only attribute alternative fuels with emission reduction benefits 14 under the benefit-cost analysis if the environmental attributes are 15 retained by the utility for the benefit of the utility's customers or by 16 the end-use customer. 17 (5) Use accurate depreciation schedules that assume the full value of 18 any new gas asset is fully depreciated no later than two thousand fifty, 19 absent demonstration that the specific asset will remain in service 20 beyond two thousand fifty, and earlier if it is likely that such asset 21 will need to be phased out or retired before two thousand fifty given 22 any interim greenhouse gas emission reduction targets or geographically 23 targeted strategic asset retirement. 24 (6) Assess demographic impacts by measuring with as much geographic 25 granularity as possible and considering different levels of exposure and 26 risk factors for impacts on disadvantaged communities and other popu- 27 lations with vulnerability to changes induced by regulation. 28 2. Nothing in this chapter or any other law of New York state shall be 29 interpreted or otherwise construed as preempting a municipality from 30 adopting building codes or other regulations regarding on-site emissions 31 for new and existing buildings within their localities. 32 § 15. The labor law is amended by adding a new section 224-g to read 33 as follows: 34 § 224-g. Wage requirements for neighborhood-scale decarbonization 35 projects. 1. For purposes of this section, the term "covered neighbor- 36 hood-scale decarbonization project" shall mean projects performed by 37 contractors or subcontractors hired directly by a public utility compa- 38 ny, as defined by subdivision twenty-three of section two of the public 39 service law, to ensure that customers permanently transitioning off 40 utility gas service have access to safe and reliable substitutes for 41 heating, cooling, cooking, and water-heating prior to a cessation of gas 42 service. 43 2. Notwithstanding the provisions of section two hundred twenty-four-a 44 of this article, a covered neighborhood-scale decarbonization project 45 shall be subject to prevailing wage requirements in accordance with 46 sections two hundred twenty and two hundred twenty-b of this article. 47 Provided that a neighborhood-scale decarbonization project which is not 48 considered to be covered by this section may still otherwise be consid- 49 ered a covered project pursuant to section two hundred twenty-four-a of 50 this article if it meets the requirements of such definition. 51 3. For purposes of this section, a covered neighborhood-scale decar- 52 bonization project shall not include: 53 a. projects performed under private contract with an entity other than 54 a public utility company, even if the building owner or the contractor 55 receives financial and technical support from a public utility company, 56 including for the purchase and installation of customer-owned equipment;A. 4870 15 1 b. projects that meet exclusion criteria established by the public 2 service commission at its discretion to reasonably ensure the require- 3 ments of this section do not inhibit equitable and orderly achievement 4 of the climate justice and emission reduction mandates in chapter one 5 hundred six of the laws of two thousand nineteen, and such successors in 6 law and function as may arise from time to time; or 7 c. projects performed under a pre-hire collective bargaining agreement 8 between an owner or contractor and a bona fide building and construction 9 trade labor organization which has established itself, and/or its affil- 10 iates, as the collective bargaining representative for all persons who 11 will perform work on such a project, and which provides that only 12 contractors and subcontractors who sign a pre-negotiated agreement with 13 the labor organization can perform work on such a project, or projects 14 performed under a labor peace agreement, project labor agreement, or any 15 other project performed under an enforceable agreement between an owner 16 or contractor and a bona fide building and construction trade labor 17 organization. 18 4. For purposes of this section, the "fiscal officer" shall be deemed 19 to be the commissioner. The enforcement of any covered neighborhood-sca- 20 le decarbonization project pursuant to this section shall be subject to 21 the requirements of sections two hundred twenty, two hundred twenty-a, 22 two hundred twenty-b, two hundred twenty-three, two hundred 23 twenty-four-b and two hundred twenty-seven of this article and within 24 the jurisdiction of the fiscal officer; provided, however, nothing 25 contained in this section shall be deemed to construe any covered neigh- 26 borhood-scale decarbonization project as otherwise being considered 27 public work pursuant to this article. 28 5. The fiscal officer may issue rules and regulations governing the 29 provisions of this section. Violations of this section shall be grounds 30 for determinations and orders pursuant to section two hundred twenty-b 31 of this article. 32 § 16. This act shall take effect immediately.
