Bill Text: NY S02935 | 2023-2024 | General Assembly | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Enacts the "just energy transition act"; requires a study of competitive options to facilitate the phase-out, replacement and redevelopment of New York state's oldest and most-polluting fossil fueled generation facilities and their sites by the year 2030.

Spectrum: Partisan Bill (Democrat 30-1)

Status: (Engrossed) 2024-03-27 - referred to energy [S02935 Detail]

Download: New_York-2023-S02935-Amended.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                         2935--C
            Cal. No. 237

                               2023-2024 Regular Sessions

                    IN SENATE

                                    January 25, 2023
                                       ___________

        Introduced by Sens. PARKER, GIANARIS, GONZALEZ, HARCKHAM, HOYLMAN-SIGAL,
          JACKSON,  MARTINEZ,  MYRIE, RAMOS, SEPULVEDA -- read twice and ordered
          printed, and when printed to be committed to the Committee  on  Energy
          and  Telecommunications  --  reported  favorably  from said committee,
          ordered to first and  second  report,  ordered  to  a  third  reading,
          amended  and  ordered  reprinted,  retaining its place in the order of
          third reading -- again amended and ordered  reprinted,  retaining  its
          place  in  the  order  of  third  reading -- again amended and ordered
          reprinted, retaining its place in the order of third reading

        AN ACT enacting the "just energy transition act"

          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 "just energy transition act".
     3    § 2. Legislative findings and statement of  purpose.  The  legislature
     4  hereby finds, determines and declares:
     5    (a)  New  York  state,  especially New York city, is reliant on fossil
     6  fuels for energy production, making the transition to renewable  sources
     7  for  the  downstate electricity system key to achieving the requirements
     8  of section 4 of the New York  state  climate  leadership  and  community
     9  protection  act, including that seventy percent of the state's electric-
    10  ity be from renewable energy sources by  the  year  2030  and  that  one
    11  hundred percent of the state's electricity be from zero-emission sources
    12  by the year 2040.
    13    (b)  New  York  state  is committed to the responsible replacement and
    14  redevelopment of its fossil fueled generation facilities that  currently
    15  ensure resource adequacy in the state, especially in locations where the
    16  health  benefits  to historically disadvantaged communities can be maxi-
    17  mized, and where the cost effective phasing-out of such  facilities  can
    18  be done while helping to ensure a just transition for the existing work-
    19  force.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06171-08-3

        S. 2935--C                          2

     1    (c)  A  public policy purpose would be served and the interests of the
     2  people of the state would be advanced by directing the  New  York  state
     3  energy  research  and  development  authority,  in consultation with the
     4  department of public service and the department of environmental conser-
     5  vation,  to  continue the development of the study commenced in 2022, as
     6  referenced in the climate action council scoping plan of  strategies  to
     7  facilitate  the  replacement  and redevelopment of New York's oldest and
     8  most-polluting fossil fueled generation facilities and  their  sites  by
     9  2030, while ensuring resource adequacy, with renewable energy systems as
    10  defined  in paragraph (b) of subdivision 1 of section 66-p of the public
    11  service law, energy storage systems, and  electricity  transmission  and
    12  distribution systems and equipment.
    13    (d)  It  is  the  intent  of  the  legislature in enacting this act to
    14  empower the New York state energy research  and  development  authority,
    15  department  of public service, and department of environmental conserva-
    16  tion, to develop a study as described  in  the  climate  action  council
    17  scoping  plan  and  paragraph  (c)  of  section three of this act in the
    18  manner authorized and directed herein, and for those  entities  and  the
    19  public  service commission, and any other agencies or authorities of the
    20  state as may be required, to commence any proceedings  or  other  initi-
    21  atives necessary to carry out the strategies described therein.
    22    §  3.  The New York state energy research and development authority is
    23  authorized and directed to:
    24    (a) develop a study of competitive options to  facilitate  the  phase-
    25  out,  replacement and redevelopment of New York state's oldest and most-
    26  polluting fossil fueled generation facilities and  their  sites  by  the
    27  year   2030,  with  renewable  generation  options  that  include  those
    28  described in the scoping plan issued by the climate action council under
    29  section 75-0103 of the environmental conservation law, renewable  energy
    30  systems  as defined in paragraph (b) of subdivision 1 of section 66-p of
    31  the public service law, energy storage systems, and  electricity  trans-
    32  mission  and distribution systems and equipment, while ensuring resource
    33  adequacy and other reliability services are maintained, and to do so  in
    34  consultation  with  the  department of public service, the department of
    35  environmental conservation, Long Island power authority, and other rele-
    36  vant state agencies and authorities with subject matter  expertise,  the
    37  federally  designated  electric bulk system operator, the New York State
    38  Reliability Council, and the owners of such facilities. The study should
    39  prioritize the replacement  and  redevelopment  of  such  fossil  fueled
    40  generation  facilities  with  facilities  that  will  directly assist in
    41  achieving the energy, environmental  justice  and  emissions  reductions
    42  requirements  of section 66-p of the public service law. The study shall
    43  address the phase-out of at least four gigawatts of fossil fueled gener-
    44  ation statewide capacity in total and prioritize those  facilities  that
    45  only  operate when electricity usage is highest. The study shall include
    46  recommendations of standards and requirements that:
    47    (i) significantly reduce the state's electricity  system  reliance  on
    48  fossil  fuels,  taking  into  account the requirements and timing of the
    49  state's emission reduction programs;
    50    (ii) establish a competitive program to promote private sector invest-
    51  ment in eligible technologies that the  public  service  commission  has
    52  determined,  after  notice and provision for the opportunity to comment,
    53  ensure resource adequacy, while achieving the  requirements  of  section
    54  66-p of the public service law;

        S. 2935--C                          3

     1    (iii)  provide significant environmental, health and other benefits to
     2  disadvantaged communities as such  communities  will  be  defined  under
     3  section 75-0111 of the environmental conservation law; and
     4    (iv)  have  significant  potential  for  job  creation  and retention,
     5  economic development, and just transition opportunities  benefiting  New
     6  Yorkers  and  the  state's  workforce,  as described in the scoping plan
     7  issued by the climate action council under section 75-0103 of the  envi-
     8  ronmental conservation law; and
     9    (v)  ensure  the  availability of assistance under the electric gener-
    10  ation facility cessation mitigation fund established  in  section  1  of
    11  part BB of chapter 58 of the laws of 2016 to any local government entity
    12  impacted  by  the  replacement and redevelopment of fossil fueled gener-
    13  ation facilities under this section;
    14    (b) provide  public  notice  of  the  study, and ensure the results of
    15  the study are made easily accessible to members of disadvantaged  commu-
    16  nities,  as defined in section 75-0101 of the environmental conservation
    17  law, and provide an opportunity for public comment on the study  of  not
    18  less  than  sixty  days and conduct at least two  public hearings on the
    19  study, of which at least one shall be held in disadvantage  communities,
    20  as defined in section 75-0101 of the environmental conservation law with
    21  such public hearings offering  video participation and accessibility;
    22    (c)  address  public  comments  and  update the study, as appropriate,
    23  especially to ensure resource  adequacy  and  reliability  services  are
    24  maintained; and
    25    (d)  deliver  the  study  to  the governor, temporary president of the
    26  senate and speaker of the assembly within 180 days of the effective date
    27  of this section.
    28    § 4. The department of public service, the department of environmental
    29  conservation, and Long Island power authority shall commence proceedings
    30  and stakeholder processes to establish programs  and  other  initiatives
    31  necessary to carry out the strategies, programs, standards, and require-
    32  ments  described  in  the study referred to in section three of this act
    33  within 60 days of delivery of the study to the governor, temporary pres-
    34  ident of the senate and speaker of the assembly.
    35    § 5. The public service commission shall:
    36    (a) commence a proceeding to implement the strategies, programs, stan-
    37  dards, and requirements described in the study referred  to  in  section
    38  three  of this act within 90 days of delivery of the study to the gover-
    39  nor, temporary president of the senate and speaker of the assembly; and
    40    (b)  issue  an  order  regarding  implementation  of  the  strategies,
    41  programs, standards, and requirements described in the study referred to
    42  in  section  three  of  this act no later than July 30, 2024. Such order
    43  shall at a minimum:
    44    (i) direct the New York state energy research and development authori-
    45  ty to implement a competitive award process to facilitate  the  replace-
    46  ment  and  redevelopment  of  at  least  four gigawatts of fossil fueled
    47  generation facilities statewide while maintaining reliability consistent
    48  with the recommendations of the study pursuant to section three of  this
    49  act,  and  that as part of such competitive award process, consideration
    50  shall be given to security of offtake with  respect  to  generation  and
    51  transmission; and
    52    (ii)  direct  that  with  respect  to  the  competitive  award process
    53  required, the only eligible electricity  generation  from  hydroelectric
    54  facilities  shall  be electricity that is generated from non-state-owned
    55  low impact run-of-river facilities located in the state that  provide  a
    56  year-round electricity capacity resource.

        S. 2935--C                          4

     1    (c)(i)  Any  projects  pursuant to this section, or the study provided
     2  herein, shall be  deemed  public  work  and  shall  be  subject  to  and
     3  performed  in  accordance  with  articles 8 and 9 of the labor law. Each
     4  contract for such project shall contain a provision  that  such  project
     5  shall  only  be  undertaken  pursuant  to a project labor agreement. For
     6  purposes of this section, "project labor agreement" shall  mean  a  pre-
     7  hire  collective  bargaining agreement between the New York state energy
     8  research and development authority, a  third  party  on  behalf  of  the
     9  authority, or a recipient of support under this section, and a bona fide
    10  building  and  construction  trade  labor  organization establishing the
    11  labor organization as the collective bargaining representative  for  all
    12  persons  who  will  perform  work  on  a  public work project, and which
    13  provides that only contractors and subcontractors who sign a pre-negoti-
    14  ated agreement with the labor organization can perform project work. All
    15  contractors and  subcontractors  associated  with  this  work  shall  be
    16  required  to  utilize apprenticeship agreements as defined by article 23
    17  of the labor law.
    18    (ii) The New York state energy research and development authority,  or
    19  public service commission, where appropriate, shall include requirements
    20  in  any  procurement  or  development  of  a renewable energy generating
    21  project, as defined in this subdivision, that the components  and  parts
    22  shall  be  produced  or  made in whole or substantial part in the United
    23  States, its territories  or  possessions.  The  New  York  state  energy
    24  research and development authority's president and chief executive offi-
    25  cer,  or  his  or her designee may waive the procurement and development
    26  requirements set forth in this paragraph  if  such  official  determines
    27  that: the requirements would not be in the public interest; the require-
    28  ments  would result in unreasonable costs; obtaining such infrastructure
    29  components and parts in the United States would increase the cost  of  a
    30  renewable  energy  generating project by an unreasonable amount; or such
    31  components or parts cannot be produced, made, or assembled in the United
    32  States in sufficient and reasonably available quantities or of satisfac-
    33  tory quality. Such determination shall be made on  an  annual  basis  no
    34  later than December thirty-first, after providing notice and an opportu-
    35  nity  for  public comment, and such determination shall be made publicly
    36  available, in writing, on the New York state energy research and  devel-
    37  opment  authority's  website with a detailed explanation of the findings
    38  leading to such determination. If the New York state energy research and
    39  development authority's president and chief executive officer, or his or
    40  her designee, has issued  determinations  for  three  consecutive  years
    41  finding  that  no  such  waiver is warranted pursuant to this paragraph,
    42  then the New York state energy research and development authority  shall
    43  no  longer  be  required to provide the annual determination required by
    44  this paragraph.
    45    (d)(i) The commissioner of labor, in consultation with labor organiza-
    46  tions, shall develop a  comprehensive  plan  to  transition,  train,  or
    47  retrain  employees  that are impacted by projects undertaken pursuant to
    48  this act, or the study provided in section three of this act. This  plan
    49  shall  include a method of allowing displaced and transitioning workers,
    50  including affected labor organizations, to notify  the  commissioner  of
    51  the  loss  of  employment, their previous title, and previous wage rates
    52  including whether they previously  received  medical  and/or  retirement
    53  benefits. The plan shall require employers to notify the commissioner of
    54  workers laid off or discharged due to this act.
    55    (ii)  The  commissioner  of  labor  shall create a program pursuant to
    56  which, where applicable and feasible, newly  created  job  opportunities

        S. 2935--C                          5

     1  shall  be offered to a pool of transitioning workers who have lost their
     2  employment or will be losing  their  employment  in  the  energy  sector
     3  through  projects undertaken pursuant to this act, or the study provided
     4  in  section  three  of this act. Such program shall include a method for
     5  the commissioner of labor to communicate names and  contact  information
     6  for  displaced or transitioning workers to public entities that may have
     7  job opportunities for such workers every 90 days.
     8    (e) Notwithstanding any provision of law to the contrary,  all  rights
     9  or   benefits,   including  terms  and  conditions  of  employment,  and
    10  protection of civil service and  collective  bargaining  status  of  all
    11  existing public employees and the work jurisdiction, covered job titles,
    12  and  work assignments, set forth in the civil service law and collective
    13  bargaining  agreements  with  labor  organizations  representing  public
    14  employees  shall  be  preserved and   protected. Nothing in this section
    15  shall result in the:  (i) displacement of any currently employed  worker
    16  or  loss of position (including partial displacement as such a reduction
    17  in the hours of non-overtime work, wages,  or  employment  benefits)  or
    18  result  in  the impairment of existing collective bargaining agreements;
    19  (ii) transfer of existing duties and functions  related  to  maintenance
    20  and  operations  currently performed by existing employees of authorized
    21  entities to a contracting entity; or (iii) transfer of future duties and
    22  functions ordinarily performed by employees of authorized entities to  a
    23  contracting entity.
    24    §  6.  The  Long  Island  power authority shall establish a program or
    25  programs in its service territory consistent with the recommendation  of
    26  the  study  conducted  pursuant  to  section  three  of  this  act,  the
    27  provisions of section five of this act, and the objectives of this act.
    28    § 7. This act shall take effect immediately.
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