STATE OF NEW YORK ________________________________________________________________________ 6263 2023-2024 Regular Sessions IN ASSEMBLY April 3, 2023 ___________ Introduced by M. of A. GLICK -- read once and referred to the Committee on Environmental Conservation AN ACT to amend the environmental conservation law, the public authori- ties law, the labor law and the state finance law, in relation to climate and community protection The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 75-0109 of the environmental conservation law is 2 amended by adding a new subdivision 5 to read as follows: 3 5. All revenue, interest and penalties received under programs and 4 regulations adopted pursuant to this section shall be deposited in the 5 climate and community protection transfer account established by the New 6 York state energy research and development authority pursuant to para- 7 graph (c) of subdivision one of section eighteen hundred fifty-nine of 8 the public authorities law. 9 § 2. Subdivision 1 of section 1859 of the public authorities law is 10 amended by adding a new paragraph (c) to read as follows: 11 (c) Notwithstanding the provisions of paragraph (a) of this subdivi- 12 sion, the authority shall establish a segregated climate and community 13 protection transfer account for the deposit of all funds collected by 14 the authority under programs and regulations adopted pursuant to section 15 75-0109 of the environmental conservation law. Within thirty days of 16 receipt of funds in the climate and community protection transfer 17 account, such funds shall be deposited in the climate and community 18 protection fund established pursuant to section ninety-two-kk of the 19 state finance law. 20 § 3. The public authorities law is amended by adding a new section 21 1872-b to read as follows: 22 § 1872-b. Gap funding for green residential buildings. 1. The authori- 23 ty shall establish and administer a program to provide assistance for 24 residences to meet green residential building standards as defined in EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD09930-02-3A. 6263 2 1 section eighteen hundred seventy-two of this title for circumstances and 2 applications in which other assistance is lacking or inadequate to meet 3 identified needs. 4 2. Such program shall address existing issues in broader achievement 5 of green residential building standards, and in so doing, shall consid- 6 er, at minimum: 7 (a) appropriateness of non-energy measures such as electrification 8 readiness; 9 (b) local supply chain development; 10 (c) increasing visibility and outreach of authority programs; 11 (d) whole-home retrofitting options; and 12 (e) pilot programs for low-income residents. 13 3. The authority shall implement strategies to mitigate adverse 14 economic impacts of the program on tenants, including but not limited to 15 residents in rent-regulated housing or recipients of housing subsidies. 16 § 4. The public authorities law is amended by adding two new sections 17 1885 and 1886 to read as follows: 18 § 1885. Office of equity for energy and climate. 1. Definitions. As 19 used in this section, the following terms shall have the following mean- 20 ings: 21 (a) "Community solutions fund" shall mean the community directed 22 climate solutions fund established pursuant to subdivision three of this 23 section. 24 (b) "Office" shall mean the office of equity for energy and climate 25 established pursuant to subdivision two of this section. 26 (c) "Solutions grants program" shall mean the community directed 27 climate solutions grants program established pursuant to subdivision 28 four of this section. 29 2. Office of equity for energy and climate. (a) There is established 30 within the authority an office of equity for energy and climate. 31 (b) The purpose of the office of equity for energy and climate is to 32 support local and communally developed climate projects to support 33 disadvantaged communities, including by establishing and administering 34 the community solutions fund and the solutions grants program pursuant 35 to subdivisions three and four of this section. 36 3. The community directed climate solutions fund. There is estab- 37 lished within the office the community solutions fund, out of which the 38 office shall make grants pursuant to the solutions grants program. 39 4. Community directed climate solutions grants program. (a) The office 40 shall establish the community directed climate solutions grants program 41 to provide assistance to community-based organizations, projects, and 42 initiatives that may not meet application criteria for other assistance 43 programs, or for which other assistance programs are inadequate. 44 (b) The office shall design the solutions grants program, to the 45 extent practicable and permissible, to maximize the ability of grant 46 recipients to use such grants as matching funds in other assistance 47 program applications and/or to leverage the funding to receive addi- 48 tional grants from other assistance programs. 49 (c) The office shall identify the needs of disadvantaged communities 50 to prioritize grant allocation. Such identification process shall 51 include significant consultation with community stakeholders in a varie- 52 ty of disadvantaged communities throughout the state, at least three 53 public hearings, and other opportunities for public input. The office 54 shall also consult with the climate justice working group established 55 pursuant to section 75-0111 of the environmental conservation law. 56 (d) Applicants eligible for the solutions grants program:A. 6263 3 1 (i) Lead applicants eligible for grants shall be constituency-based 2 organizations, tribal nations, or, in communities where neither consti- 3 tuency-based organizations or tribal nations exist, a municipality. 4 (ii) Sub-applicants may include other non-profit organizations, 5 academic institutions, business entities, municipalities and other 6 stakeholders. 7 (d) The following restrictions shall apply to the community directed 8 climate solutions grants program: 9 (i) Grants shall only be made for zero-emissions projects that reduce 10 greenhouse gas emissions, urban heat island effects, or local pollution, 11 or that support community ownership and governance of energy infrastruc- 12 ture. 13 (ii) At least seventy-five percent of funding must support projects 14 located within disadvantaged communities. 15 (iii) Up to twenty-five percent of funding may support projects 16 located outside disadvantaged communities, provided that such funding 17 provides a benefit to disadvantaged communities, including by reducing 18 pollution in disadvantaged communities, reducing energy costs in disad- 19 vantaged communities, or increasing disadvantaged community ownership or 20 governance of energy infrastructure. 21 (iv) To the extent practicable, grants shall be distributed equitably 22 to disadvantaged communities throughout the state, based on population. 23 (v) Grants shall only be made for projects which satisfy the community 24 decision-making and accountability standards established pursuant to 25 subdivision five of this section. 26 (vi) Projects funded by grants made under the solutions grants program 27 shall be subject to the provisions of seven hundred ninety of the labor 28 law. 29 (vii) Preference shall be given to proposals that include significant 30 participation by minority and women-owned business enterprises. 31 5. The office shall develop and establish standards for community 32 decision-making and accountability mechanisms with respect to eligible 33 projects and the use of grant funding pursuant to the provisions of this 34 section. 35 6. Beginning one year after its establishment and annually thereafter, 36 the office shall submit a report to the climate justice working group 37 established pursuant to section 75-0111 of the environmental conserva- 38 tion law on the use of funds in the community directed climate solutions 39 fund and recipients of the solutions grants program. 40 § 1886. Climate rebates. 1. The authority shall develop a rebate 41 program to reduce potential increased costs to consumers resulting from 42 regulatory changes undertaken pursuant to article seventy-five of the 43 environmental conservation law. 44 2. Program design shall be guided by the findings and recommendations 45 of the final scoping plan prepared pursuant to section 75-0103 of the 46 environmental conservation law and the study conducted pursuant to 47 subdivision three of this section. 48 3. The authority, in consultation with the climate justice working 49 group established pursuant to section 75-0111 of the environmental 50 conservation law, shall conduct a study to determine how to best struc- 51 ture and distribute rebates pursuant to this section in an equitable 52 manner. Such study shall be completed by the first of February two thou- 53 sand twenty-four. 54 4. (a) The authority shall establish a variety of rebate types to meet 55 the varied needs of the people of the state, which may include tax cred-A. 6263 4 1 its, transit vouchers, direct payments, utility assistance, or other 2 financial benefits as are reasonable and practicable. 3 (b) Individuals receiving means-tested government assistance shall 4 receive rebates through mechanisms that will not constitute income for 5 purposes of any such means-tested government assistance programs. 6 5. An individual eligible for a rebate pursuant to the provisions of 7 this section may opt out of receiving such rebate. 8 6. The authority shall implement the rebate program in a manner that 9 limits the administrative effort required of recipients of rebates. 10 7. The authority is authorized and directed to promulgate rules and 11 regulations to effect the provisions of this section, and shall hold no 12 fewer than three public hearings in connection therewith. 13 § 5. The labor law is amended by adding a new article 21-B to read as 14 follows: 15 ARTICLE 21-B 16 LABOR STANDARDS FOR CLIMATE FUNDING 17 Section 790. Labor standards for climate funding. 18 § 790. Labor standards for climate funding. 1. Projects funded pursu- 19 ant to paragraphs (b), (c), and subparagraph (ii) of paragraph (d) of 20 subdivision five of section ninety-two-kk of the state finance law shall 21 require for any procurement for the manufacturing or retrofitting as 22 part of such project that the components and parts used or supplied in 23 the performance of the contract or any subcontract thereto shall be 24 produced or made in whole or substantial part in the United States, its 25 territories or possessions and that final assembly of any article pursu- 26 ant to such project shall occur in the United States, its territories or 27 possessions. 28 2. The commissioner, in consultation with the New York state energy 29 research and development authority and the office of general services, 30 may waive the contracting requirements set forth in subdivision one of 31 this section if the commissioner determines that the requirements would 32 not be in the public interest, would result in unreasonable costs, or 33 that obtaining such components and parts in the United States would 34 increase the cost of a project by an unreasonable amount, or such compo- 35 nents and parts cannot be produced, made, or assembled in the United 36 States in sufficient and reasonably available quantities or of satisfac- 37 tory quality. Such determination shall be made on an annual basis no 38 later than December thirty-first, after providing notice and an opportu- 39 nity for public comment, and be made publicly available, in writing, on 40 the department's website with a detailed explanation of the findings 41 leading to such determination. If the commissioner has issued determi- 42 nations for three consecutive years that no such waiver is warranted 43 pursuant to this paragraph, then the commissioner shall no longer be 44 required to provide the annual determinations required by this para- 45 graph. 46 3. (a) Nothing in this section shall alter the rights or benefits, and 47 privileges, including, but not limited to terms and conditions of 48 employment, civil service status, and collective bargaining unit member- 49 ship, of any current employees of any entity contracted to provide 50 services for a project funded pursuant to paragraphs (b), (c), and 51 subparagraph (ii) of paragraph (d) of subdivision five of section nine- 52 ty-two-kk of the state finance law, or services attendant thereto. 53 (b) Nothing in this section shall result in: (i) the discharge, 54 displacement, or loss of position, including partial displacement such 55 as a reduction in the hours of non-overtime work, wages, or employmentA. 6263 5 1 benefits; (ii) the impairment of existing collective bargaining agree- 2 ments; (iii) the transfer of existing duties and functions; or (iv) the 3 transfer of future duties and functions, of any currently employed work- 4 er impacted by the proposed purchase or lease who agrees to be 5 retrained. 6 (c) Prior to the beginning of the procurement process for a project 7 funded pursuant to paragraphs (b), (c), and subparagraph (ii) of para- 8 graph (d) of subdivision five of section ninety-two-kk of the state 9 finance law an employer whose workers provide services for such project, 10 shall create and implement a workforce development report that: (i) 11 estimates the number of current positions that would be eliminated or 12 substantially changed as a result of the project, and the number of 13 positions expected to be created by such employer as a result of the 14 project; (ii) identifies gaps in skills of its current workforce that 15 are needed to provide services for such project; (iii) includes a 16 comprehensive plan to transition, train, or retrain employees that are 17 impacted by the project; and (iv) contains an estimated budget to tran- 18 sition, train, or retrain employees that are impacted by the project. 19 (d) Nothing in this section shall: (i) limit rights of employees 20 pursuant to a collective bargaining agreement, or (ii) alter the exist- 21 ing representational relationships among collective bargaining represen- 22 tatives or the bargaining relationships between the employer and any 23 collective bargaining representative. Employees of public entities serv- 24 ing in positions in newly created titles shall be assigned to the appro- 25 priate bargaining unit. 26 (e) Prior to beginning the procurement process for a project funded 27 pursuant to paragraphs (b), (c), and subparagraph (ii) of paragraph (d) 28 of subdivision five of section ninety-two-kk of the state finance law, 29 an employer of workers covered by this section shall inform its employ- 30 ees' collective bargaining representative of any potential impact on its 31 members or unit, including positions that may be affected, altered, or 32 eliminated as a result of the project. 33 4. Any work related to a project funded pursuant to paragraphs (b), 34 (c), and subparagraph (ii) of paragraph (d) of subdivision five of 35 section ninety-two-kk of the state finance law shall be considered 36 public work and shall be subject to prevailing wage requirements in 37 accordance with section two hundred twenty and two hundred twenty-b of 38 this chapter. 39 § 6. The state finance law is amended by adding a new section 92-kk to 40 read as follows: 41 § 92-kk. Climate and community protection fund. 1. There is hereby 42 established in the joint custody of the comptroller and the commissioner 43 of taxation and finance a special fund to be known as the "climate and 44 community protection fund". 45 2. (a) The comptroller shall establish the following separate and 46 distinct accounts within the climate and community protection fund: 47 (i) the climate jobs and infrastructure account; 48 (ii) the community transition account; 49 (iii) the worker transition account; and 50 (iv) the energy affordability account. 51 (b) All monies received by the comptroller for deposit in the 52 climate and community protection fund shall be deposited to the credit 53 of such accounts as follows: forty-one percent to the climate jobs and 54 infrastructure account, twenty percent to the community transition 55 account, six percent to the worker transition account and thirty-three 56 percent to the energy affordability account. No monies shall beA. 6263 6 1 expended from any such account except pursuant to appropriation by the 2 legislature. 3 3. Such fund shall consist of all moneys transferred pursuant to para- 4 graph (c) of subdivision one of section eighteen hundred fifty-nine of 5 the public authorities law and all other moneys credited or transferred 6 thereto from any other fund or source pursuant to law. All such moneys 7 shall be initially deposited into the climate and community protection 8 fund, for application as provided in subdivision five of this section. 9 4. Moneys in the climate and community protection fund shall be kept 10 separate and shall not be commingled with any other moneys in the custo- 11 dy of the comptroller. All deposits of such revenues shall, if required 12 by the comptroller, be secured by obligations of the United States or 13 of the state having a market value equal at all times to the amount of 14 such deposits and all banks and trust companies are authorized to give 15 security for such deposits. Any such moneys in such fund may, upon the 16 discretion of the comptroller, be invested in obligations in which the 17 comptroller is authorized to invest pursuant to section ninety-eight-a 18 of this article. 19 5. (a) All moneys heretofore and hereafter deposited in the 20 climate and community protection transfer account shall be transferred 21 by the comptroller only to the climate jobs and infrastructure account, 22 community transition account, worker transition account, and energy 23 affordability account. Such transfers shall be made at the request of 24 the director of the budget. 25 (b) Moneys of the climate jobs and infrastructure account shall be 26 available, pursuant to appropriation and upon certificate of approval 27 of availability only for projects under title nine-A of article eight of 28 the public authorities law, projects under title fifteen of article 29 fifty-four of the environmental conservation law, the New York state 30 energy research and development authority NY-Sun program, the New York 31 state energy research and development authority P-12 schools: clean 32 green schools initiative, offshore wind projects, transit authorities, 33 the New York state energy research and development authority truck 34 voucher incentive program, the New York state energy research and devel- 35 opment authority regional clean energy hubs program, the New York state 36 energy research and development authority renewable capital programs, 37 methane leakage detection projects, thermal energy network pilot 38 programs, cost associate with section thirty-six hundred thirty-eight of 39 the education law, the New York state energy research and development 40 authority affordable multifamily energy efficiency program, the New York 41 state energy research and development authority New York truck voucher 42 incentive program, the agricultural environmental management program 43 established in article eleven-A of the agriculture and markets law, 44 the New York city housing preservation and development-New York state 45 energy research and development authority retrofit electrification pilot 46 program, zero-emission state light-duty vehicle fleet procurement, zero- 47 emission medium- and heavy-duty vehicle rebates for municipalities, 48 zero-emission light-duty vehicle rebates for municipalities, the 49 department of environmental conservation's urban and community forestry 50 grant program, the forest conservation easement land trusts grant 51 program, New York state energy research and development authority clean 52 heat program rebates and incentives, programs related to the New Effi- 53 ciency: New York report, and other programs administered by the depart- 54 ment of environmental conservation or the New York state energy research 55 and development authority which, in the determination of the departmentA. 6263 7 1 of environmental conservation or the New York state energy research and 2 development authority, as applicable, meet the following requirements: 3 (i) the project will result in direct reductions in statewide green- 4 house gas emissions and/or co-pollutants in compliance with provisions 5 of subdivisions two and three of section 75-0109 of the environmental 6 conservation law; 7 (ii) the project will not utilize any combustion fuels or fossil fuels 8 in operation; and 9 (iii) the project will create jobs or support economic development 10 subject to the standards set forth in section seven hundred ninety of 11 the labor law. 12 (c) Moneys from the community transition account shall be available, 13 pursuant to appropriation and upon certificate of approval of availabil- 14 ity by the director of the budget, only for department of environmental 15 conservation environmental justice grants, New York state energy 16 research and development authority energy equity collaborative, and the 17 community directed climate solutions grants program as established 18 pursuant to section eighteen hundred eighty-five of the public authori- 19 ties law. 20 (d) Moneys from the worker transition account shall be available, 21 pursuant to appropriation, and upon certificate of approval of avail- 22 ability by the director of the budget, only for: 23 (i) Grants, income support, or programs administered by a labor union 24 or the department of labor which provide direct support for workers 25 adversely affected or displaced by fossil fuel facility closures, 26 including support for such workers in starting new business enterprises. 27 (ii) Grants, tax replacement, payment in lieu of taxes, or programmat- 28 ic support for local governments and counties which have hosted fossil 29 fuel or energy infrastructure significantly impacted by energy regulato- 30 ry changes, including: 31 (A) the empire state development corporation's electric generation 32 facility cessation mitigation program; 33 (B) the New York state energy research and development authority's 34 just transition site reuse planning program; and 35 (C) state assistance for brownfield opportunity areas pursuant to 36 section nine hundred seventy-r of the general municipal law. 37 (e) Moneys from the energy affordability account shall be available, 38 pursuant to appropriation and upon certificate of approval of availabil- 39 ity by the director of the budget, for: 40 (i) programs that prevent increases in energy burden due to energy 41 regulatory changes; 42 (ii) reducing energy use and utility costs for low- and moderate-in- 43 come households, small businesses, and not-for-profits; 44 (iii) affordability rebate payments to help reduce potential increased 45 costs of various goods and services that may result from the implementa- 46 tion of regulations promulgated pursuant to section 75-0109 of the envi- 47 ronmental conservation law; and 48 (iv) assistance pursuant to section eighteen hundred seventy-two-b of 49 the public authorities law. 50 (f) Agencies or authorities distributing moneys of the climate and 51 community protection fund shall be entitled to recover from such moneys 52 their own necessary and documented costs incurred in administering such 53 distributions, provided, however, sums so recovered shall not exceed 54 five percent of such moneys distributed. 55 6. All payments of moneys from the fund shall be subject to the 56 provisions of section 75-0117 of the environmental conservation law,A. 6263 8 1 provided that, notwithstanding the provisions thereof, disadvantaged 2 communities shall receive no less than forty percent of such payments. 3 Payments made from the climate jobs and infrastructure account pursuant 4 to paragraph (b) of subdivision five of this section, the community 5 transition account pursuant to paragraph (c) of subdivision five of this 6 section, and payments pursuant to subparagraph (ii) of paragraph (d) of 7 subdivision five of this section shall be subject to the requirements of 8 section seven hundred ninety of the labor law, as applicable. 9 7. All payments of moneys from the fund shall be made on the audit and 10 warrant of the comptroller. 11 8. Notwithstanding any other law to the contrary and in accordance 12 with section four of this chapter, the comptroller is hereby authorized 13 at the direction of the director of the division of the budget to 14 transfer moneys from the general fund to the climate and community 15 protection fund for the purpose of maintaining the solvency of the 16 climate and community protection fund. If, in any fiscal year, moneys 17 in the climate and community protection fund are deemed insufficient by 18 the director of the division of the budget to meet actual and antic- 19 ipated disbursements from enacted appropriations or reappropriations 20 made pursuant to this section, the comptroller shall at the direction of 21 the director of the division of the budget, transfer from the general 22 fund to the climate and community protection fund moneys sufficient to 23 meet such disbursements. Such transfers shall be made only upon certif- 24 ication of need by the director of the division of the budget, with 25 copies of such certification filed with the chairperson of the senate 26 finance committee, the chairperson of the assembly ways and means 27 committee and the state comptroller. 28 § 7. This act shall take effect immediately.