STATE OF NEW YORK ________________________________________________________________________ 2935--D 2023-2024 Regular Sessions IN SENATE January 25, 2023 ___________ Introduced by Sens. PARKER, BRESLIN, BRISPORT, CLEARE, COMRIE, FERNAN- DEZ, GIANARIS, GONZALEZ, GOUNARDES, HARCKHAM, HOYLMAN-SIGAL, JACKSON, KAVANAGH, KRUEGER, LIU, MARTINEZ, MAY, MYRIE, RAMOS, SALAZAR, SEPULVE- DA, SERRANO, STAVISKY -- read twice and ordered printed, and when printed to be committed to the Committee on Energy and Telecommuni- cations -- 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 -- recommitted to the Committee on Energy and Telecommunications in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee 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 EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD06171-14-4S. 2935--D 2 1 ensure resource adequacy in the state, especially in locations where the 2 health benefits to historically disadvantaged communities can be maxi- 3 mized, and where the cost effective phasing-out of such facilities can 4 be done while helping to ensure a just transition for the existing work- 5 force. 6 (c) A public policy purpose would be served and the interests of the 7 people of the state would be advanced by directing the New York state 8 energy research and development authority, in consultation with the 9 department of public service and the department of environmental conser- 10 vation, to continue the development of the study commenced in 2022, as 11 referenced in the climate action council scoping plan of strategies to 12 facilitate the replacement and redevelopment of New York's oldest and 13 most-polluting fossil fueled generation facilities and their sites by 14 2030, while ensuring resource adequacy, with renewable energy systems as 15 defined in paragraph (b) of subdivision 1 of section 66-p of the public 16 service law, energy storage systems, and electricity transmission and 17 distribution systems and equipment. 18 (d) It is the intent of the legislature in enacting this act to 19 empower the New York state energy research and development authority, 20 department of public service, and department of environmental conserva- 21 tion, to develop a study as described in the climate action council 22 scoping plan and paragraph (c) of section three of this act in the 23 manner authorized and directed herein, and for those entities and the 24 public service commission, and any other agencies or authorities of the 25 state as may be required, to commence any proceedings or other initi- 26 atives necessary to carry out the strategies described therein. 27 § 3. The New York state energy research and development authority is 28 authorized and directed to: 29 (a) develop a study of competitive options to facilitate the phase- 30 out, replacement and redevelopment of New York state's oldest and most- 31 polluting fossil fueled generation facilities and their sites by the 32 year 2030, with renewable generation options that include those 33 described in the scoping plan issued by the climate action council under 34 section 75-0103 of the environmental conservation law, renewable energy 35 systems as defined in paragraph (b) of subdivision 1 of section 66-p of 36 the public service law, energy storage systems, and electricity trans- 37 mission and distribution systems and equipment, while ensuring resource 38 adequacy and other reliability services are maintained, and to do so in 39 consultation with the department of public service, the department of 40 environmental conservation, Long Island power authority, and other rele- 41 vant state agencies and authorities with subject matter expertise, the 42 federally designated electric bulk system operator, the New York State 43 Reliability Council, and the owners of such facilities. The study should 44 prioritize the replacement and redevelopment of such fossil fueled 45 generation facilities with facilities that will directly assist in 46 achieving the energy, environmental justice and emissions reductions 47 requirements of section 66-p of the public service law. The study shall 48 address the phase-out of at least four gigawatts of fossil fueled gener- 49 ation statewide capacity in total and prioritize those facilities that 50 only operate when electricity usage is highest. The study shall include 51 recommendations of standards and requirements that: 52 (i) significantly reduce the state's electricity system reliance on 53 fossil fuels, taking into account the requirements and timing of the 54 state's emission reduction programs; 55 (ii) establish a competitive program to promote private sector invest- 56 ment in eligible technologies that the public service commission hasS. 2935--D 3 1 determined, after notice and provision for the opportunity to comment, 2 ensure resource adequacy, while achieving the requirements of section 3 66-p of the public service law; 4 (iii) provide significant environmental, health and other benefits to 5 disadvantaged communities as such communities will be defined under 6 section 75-0111 of the environmental conservation law; and 7 (iv) have significant potential for job creation and retention, 8 economic development, and just transition opportunities benefiting New 9 Yorkers and the state's workforce, as described in the scoping plan 10 issued by the climate action council under section 75-0103 of the envi- 11 ronmental conservation law; and 12 (v) ensure the availability of assistance under the electric gener- 13 ation facility cessation mitigation fund established in section 1 of 14 part BB of chapter 58 of the laws of 2016 to any local government entity 15 impacted by the replacement and redevelopment of fossil fueled gener- 16 ation facilities under this section; 17 (b) provide public notice of the study, and ensure the results of 18 the study are made easily accessible to members of disadvantaged commu- 19 nities, as defined in section 75-0101 of the environmental conservation 20 law, and provide an opportunity for public comment on the study of not 21 less than sixty days and conduct at least two public hearings on the 22 study, of which at least one shall be held in disadvantage communities, 23 as defined in section 75-0101 of the environmental conservation law with 24 such public hearings offering video participation and accessibility; 25 (c) address public comments and update the study, as appropriate, 26 especially to ensure resource adequacy and reliability services are 27 maintained; and 28 (d) deliver the study to the governor, temporary president of the 29 senate and speaker of the assembly within 180 days of the effective date 30 of this section. 31 § 4. The department of public service, the department of environmental 32 conservation, and Long Island power authority shall commence proceedings 33 and stakeholder processes to establish programs and other initiatives 34 necessary to carry out the strategies, programs, standards, and require- 35 ments described in the study referred to in section three of this act 36 within 60 days of delivery of the study to the governor, temporary pres- 37 ident of the senate and speaker of the assembly. 38 § 5. The public service commission shall: 39 (a) commence a proceeding to implement the strategies, programs, stan- 40 dards, and requirements described in the study referred to in section 41 three of this act within 90 days of delivery of the study to the gover- 42 nor, temporary president of the senate and speaker of the assembly; and 43 (b) issue an order regarding implementation of the strategies, 44 programs, standards, and requirements described in the study referred to 45 in section three of this act no later than July 30, 2026. Such order 46 shall at a minimum: 47 (i) direct the New York state energy research and development authori- 48 ty to implement a competitive award process to facilitate the replace- 49 ment and redevelopment of at least four gigawatts of fossil fueled 50 generation facilities statewide while maintaining reliability consistent 51 with the recommendations of the study pursuant to section three of this 52 act, and that as part of such competitive award process, consideration 53 shall be given to security of offtake with respect to generation and 54 transmission; and 55 (ii) direct that with respect to the competitive award process 56 required, the only eligible electricity generation from hydroelectricS. 2935--D 4 1 facilities shall be electricity that is generated from non-state-owned 2 low impact run-of-river facilities located in the state that provide a 3 year-round electricity capacity resource. 4 (c)(i) Any projects pursuant to this section, or the study provided 5 herein, shall be deemed public work and shall be subject to and 6 performed in accordance with articles 8 and 9 of the labor law. Each 7 contract for such project shall contain a provision that such project 8 shall only be undertaken pursuant to a project labor agreement. For 9 purposes of this section, "project labor agreement" shall mean a pre- 10 hire collective bargaining agreement between the New York state energy 11 research and development authority, a third party on behalf of the 12 authority, or a recipient of support under this section, and a bona fide 13 building and construction trade labor organization establishing the 14 labor organization as the collective bargaining representative for all 15 persons who will perform work on a public work project, and which 16 provides that only contractors and subcontractors who sign a pre-negoti- 17 ated agreement with the labor organization can perform project work. All 18 contractors and subcontractors associated with this work shall be 19 required to utilize apprenticeship agreements as defined by article 23 20 of the labor law. 21 (ii) The New York state energy research and development authority, or 22 public service commission, where appropriate, shall include requirements 23 in any procurement or development of a renewable energy generating 24 project, as defined in this subdivision, that the components and parts 25 shall be produced or made in whole or substantial part in the United 26 States, its territories or possessions. The New York state energy 27 research and development authority's president and chief executive offi- 28 cer, or his or her designee may waive the procurement and development 29 requirements set forth in this paragraph if such official determines 30 that: the requirements would not be in the public interest; the require- 31 ments would result in unreasonable costs; obtaining such infrastructure 32 components and parts in the United States would increase the cost of a 33 renewable energy generating project by an unreasonable amount; or such 34 components or parts cannot be produced, made, or assembled in the United 35 States in sufficient and reasonably available quantities or of satisfac- 36 tory quality. Such determination shall be made on an annual basis no 37 later than December thirty-first, after providing notice and an opportu- 38 nity for public comment, and such determination shall be made publicly 39 available, in writing, on the New York state energy research and devel- 40 opment authority's website with a detailed explanation of the findings 41 leading to such determination. If the New York state energy research and 42 development authority's president and chief executive officer, or his or 43 her designee, has issued determinations for three consecutive years 44 finding that no such waiver is warranted pursuant to this paragraph, 45 then the New York state energy research and development authority shall 46 no longer be required to provide the annual determination required by 47 this paragraph. 48 (d)(i) The commissioner of labor, in consultation with labor organiza- 49 tions, shall develop a comprehensive plan to transition, train, or 50 retrain employees that are impacted by projects undertaken pursuant to 51 this act, or the study provided in section three of this act. This plan 52 shall include a method of allowing displaced and transitioning workers, 53 including affected labor organizations, to notify the commissioner of 54 the loss of employment, their previous title, and previous wage rates 55 including whether they previously received medical and/or retirementS. 2935--D 5 1 benefits. The plan shall require employers to notify the commissioner of 2 workers laid off or discharged due to this act. 3 (ii) The commissioner of labor shall create a program pursuant to 4 which, where applicable and feasible, newly created job opportunities 5 shall be offered to a pool of transitioning workers who have lost their 6 employment or will be losing their employment in the energy sector 7 through projects undertaken pursuant to this act, or the study provided 8 in section three of this act. Such program shall include a method for 9 the commissioner of labor to communicate names and contact information 10 for displaced or transitioning workers to public entities that may have 11 job opportunities for such workers every 90 days. 12 (e) Notwithstanding any provision of law to the contrary, all rights 13 or benefits, including terms and conditions of employment, and 14 protection of civil service and collective bargaining status of all 15 existing public employees and the work jurisdiction, covered job titles, 16 and work assignments, set forth in the civil service law and collective 17 bargaining agreements with labor organizations representing public 18 employees shall be preserved and protected. Nothing in this section 19 shall result in the: (i) displacement of any currently employed worker 20 or loss of position (including partial displacement as such a reduction 21 in the hours of non-overtime work, wages, or employment benefits) or 22 result in the impairment of existing collective bargaining agreements; 23 (ii) transfer of existing duties and functions related to maintenance 24 and operations currently performed by existing employees of authorized 25 entities to a contracting entity; or (iii) transfer of future duties and 26 functions ordinarily performed by employees of authorized entities to a 27 contracting entity. 28 § 6. The Long Island power authority shall establish a program or 29 programs in its service territory consistent with the recommendation of 30 the study conducted pursuant to section three of this act, the 31 provisions of section five of this act, and the objectives of this act. 32 § 7. This act shall take effect immediately.