Bill Text: NY A07879 | 2023-2024 | General Assembly | Introduced


Bill Title: Relates to providing net revenues from utility-owned large-scale renewable generation projects to low-income customers; authorizes utility companies to own such projects; provides that the commission shall require labor agreements and labor peace agreements.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Introduced) 2024-01-03 - referred to energy [A07879 Detail]

Download: New_York-2023-A07879-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          7879

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                      July 12, 2023
                                       ___________

        Introduced  by  M.  of  A.  CUNNINGHAM  -- read once and referred to the
          Committee on Energy

        AN ACT to amend the public service law and the labor law, in relation to
          providing net revenues from utility-owned large-scale renewable gener-
          ation projects to low-income customers and authorizes  utility  compa-
          nies to own such projects

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Legislative findings and intent. 1. New York  state  recog-
     2  nizes  the  deleterious impacts of climate change including increasingly
     3  frequent catastrophic weather events.
     4    2. Pursuant to the New  York  state climate leadership  and  community
     5  protection  act  (CLCPA),  New  York  state seeks to dramatically reduce
     6  greenhouse gas emissions and move its electric  generation  from  fossil
     7  fuel-based  generation to renewable-based generation. New York state has
     8  mandated that seventy percent of electricity come from renewable  energy
     9  sources  by  year  2030 and one hundred percent of electricity come from
    10  carbon neutral sources by 2040.
    11    3. Further, New York state recognizes that the current pace of  devel-
    12  opment  of  in-state  renewable energy resources is insufficient to meet
    13  the state's statutory renewable generation goals on schedule.
    14    4. Because New York state seeks  to  accomplish  these  energy-related
    15  goals  and standards as soon as practicable allowing regulated utilities
    16  to own and operate renewable generation is essential to  achieving  such
    17  goals  and to provide a consistent and affordable supply of carbon-free,
    18  renewably generated electricity by 2030, through 2050 and beyond.
    19    5. New York state seeks to  continue  to  develop  in-state  renewable
    20  energy  projects that will drive down costs, benefit customers receiving
    21  retail electric delivery particularly those customers  who  are  low  to
    22  moderate income.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11873-01-3

        A. 7879                             2

     1    6.  New  York state has a proprietary interest in these projects being
     2  efficiently built and operated without  unnecessary  disruptions,  which
     3  justifies  the  use  of  project labor agreements and labor peace agree-
     4  ments.
     5    § 2. The public service law is amended by adding a new section 66-w to
     6  read as follows:
     7    §  66-w.  Regulated  large  scale renewable generation. 1. In order to
     8  support the state in meeting state energy-related goals  and  standards,
     9  corporations  subject to the provisions of this article providing retail
    10  electric service shall be authorized to own and operate renewable energy
    11  generating facilities in New York  state.  Such  corporations  shall  be
    12  authorized  to  own and operate such facilities individually or in part-
    13  nership with other persons doing business in New York.
    14    2. A corporation owning and operating a  renewable  energy  generation
    15  facility  pursuant  to  this section shall provide all net revenues from
    16  such facility to low-income customers in the form of bill credits, which
    17  shall be in addition to any other program  or  benefit  offered  by  the
    18  corporation to assist such customers.
    19    3.  In  addition to the provisions of subdivision two of this section,
    20  any renewable energy generating facility owned  by  such  a  corporation
    21  shall be:
    22    (a)  subject  to commission oversight in order to ensure that: (i) the
    23  power generated at such facilities remains in-state for the  benefit  of
    24  customers  and  the  state;  (ii) the power generated at such facilities
    25  shall not be exported out-of-state; and (iii)  any  repowering  of  such
    26  generating  facilities  shall  comply  with  all  requirements  of  this
    27  section;
    28    (b) built, pursuant to  a  competitive  third-party  bidding  process,
    29  which shall be issued by the corporation;
    30    (c)  subject  to  section  sixty-six-r of this article and section two
    31  hundred twenty-four-d of the labor law; and
    32    (d) owned and operated in a manner that provides beneficial  cost  and
    33  rate impacts to customers.
    34    4.  The commission shall establish a generation capacity limit for the
    35  total  generation  capacity  owned  by  corporations  pursuant  to  this
    36  section.    The  total  generation capacity shall not exceed twenty-five
    37  percent of the total generation capacity needed to achieve the renewable
    38  energy goals described in section sixty-six-p of this article.
    39    5. The commission shall issue such orders, rules  and  regulations  as
    40  may be necessary and appropriate to implement this section.
    41    § 3. The public service law is amended by adding a new section 66-x to
    42  read as follows:
    43    §  66-x.  Labor  agreements  and  labor  peace  agreements. 1. For the
    44  purposes of this section:
    45    (a) "covered renewable energy system" means a renewable energy system,
    46  as such term is defined in section sixty-six-p of this article,  with  a
    47  capacity  of  greater  than five megawatts alternating current and which
    48  involves the procurement of renewable energy credits by a public entity,
    49  or a third party acting on behalf of and for the  benefit  of  a  public
    50  entity.  "Covered renewable energy system" shall also include any gener-
    51  ation  facility authorized pursuant to section sixty-six-w of this arti-
    52  cle;
    53    (b) "labor peace agreement" means an agreement between an  entity  and
    54  labor  organization that, at a minimum, protects the state's proprietary
    55  interests by prohibiting labor organizations and members  from  engaging

        A. 7879                             3

     1  in picketing, work stoppages, boycotts, and any other economic interfer-
     2  ence with the relevant renewable energy system;
     3    (c)  "public  entity"  shall include, but shall not be limited to, the
     4  state, a local development corporation as defined in  subdivision  eight
     5  of section eighteen hundred one of the public authorities law or section
     6  fourteen hundred eleven of the not-for-profit corporation law, a munici-
     7  pal  corporation  as  defined  in  section one hundred nineteen-n of the
     8  general municipal law, an industrial development agency formed  pursuant
     9  to  article eighteen-A of the general municipal law or industrial devel-
    10  opment authorities formed  pursuant  to  article  eight  of  the  public
    11  authorities  law,  and  any  state, local or interstate or international
    12  authorities as defined in section two of the public authorities law; and
    13  shall include any trust created by any such entities; and
    14    (d) "renewable energy credits agreement" shall mean any public  entity
    15  contract  that  provides production-based payments to a renewable energy
    16  project as defined in this section.
    17    2. The commission shall require that the owner of a covered  renewable
    18  energy  system,  or  a  third  party acting on the owner's behalf, as an
    19  ongoing condition of any  renewable  energy  credits  agreement  with  a
    20  public  entity, or as an ongoing condition of its authorization to oper-
    21  ate and support the state in meeting energy-related goals, shall  stipu-
    22  late  to the fiscal officer that it will enter into a labor peace agree-
    23  ment with at least one bona fide labor organization  either  where  such
    24  bona  fide labor organization is actively representing employees provid-
    25  ing necessary operations and  maintenance  services  for  the  renewable
    26  energy  system  at  the  time of such agreement or upon notice by a bona
    27  fide labor organization that is attempting to  represent  employees  who
    28  will  provide  necessary  operations  and  maintenance  services for the
    29  renewable energy system employed in the state. The maintenance of such a
    30  labor peace agreement shall be an  ongoing  material  condition  of  any
    31  continuation  of  payments under a renewable energy credits agreement or
    32  authorization by the commission.
    33    3. (a)(i)  Any public entity in each contract for construction, recon-
    34  struction, alteration, repair, improvement or maintenance of  a  covered
    35  renewable  energy  system  which involves the procurement of a renewable
    36  energy credits agreement by a public entity, or a third party acting  on
    37  behalf and for the benefit of a public entity, the "public work" for the
    38  purposes  of  this  subdivision,  shall  ensure that such contract shall
    39  contain a provision that the iron and structural steel used or  supplied
    40  in  the  performance of the contract or any subcontract thereto and that
    41  is permanently incorporated into the public work, shall be  produced  or
    42  made  in whole or substantial part in the United States, its territories
    43  or possessions. In the case of a structural  iron  or  structural  steel
    44  product  all  manufacturing  shall take place in the United States, from
    45  the initial melting stage through the application  of  coatings,  except
    46  metallurgical processes involving the refinement of steel additives. For
    47  the  purposes of this subdivision, "permanently incorporated" shall mean
    48  an iron or steel product that is required to remain in place at the  end
    49  of the project contract, in a fixed location, affixed to the public work
    50  to  which  it was incorporated. Iron and steel products that are capable
    51  of being moved from one location to another are not permanently incorpo-
    52  rated into a public work.
    53    (ii)  Any  corporation  in  each  contract  for  construction,  recon-
    54  struction,  alteration,  repair, improvement or maintenance of a covered
    55  renewable energy system, or a third party acting on behalf and  for  the
    56  benefit  of  the corporation, the "public work" for the purposes of this

        A. 7879                             4

     1  subdivision, shall ensure that such contract shall contain  a  provision
     2  that  the  iron and structural steel used or supplied in the performance
     3  of the contract or any  subcontract  thereto  and  that  is  permanently
     4  incorporated into the public work, shall be produced or made in whole or
     5  substantial  part  in the United States, its territories or possessions.
     6  In the case of a structural iron or structural steel product  all  manu-
     7  facturing must take place in the United States, from the initial melting
     8  stage  through  the  application of coatings, except metallurgical proc-
     9  esses involving the  refinement  of  steel  additives.  Iron  and  steel
    10  products  that  are  capable of being moved from one location to another
    11  are not permanently incorporated into a public work.
    12    (b) The provisions of paragraph (a)  of  this  subdivision  shall  not
    13  apply  if  the  head  of  the department or agency or corporation, under
    14  subparagraph (i) of paragraph (a) of this subdivision  constructing  the
    15  public  works,  in  his  or  her  sole  discretion,  determines that the
    16  provisions would not be in the public interest, would result  in  unrea-
    17  sonable costs, or that obtaining such steel or iron in the United States
    18  would  increase  the  cost of the contract by an unreasonable amount, or
    19  such iron or steel, including without  limitation  structural  iron  and
    20  structural  steel  cannot  be  produced  or made in the United States in
    21  sufficient and reasonably available quantities and of satisfactory qual-
    22  ity. The head of the department or agency constructing the public  works
    23  shall  include this determination in an advertisement or solicitation of
    24  a request for proposal, invitation for bid, or solicitation of proposal,
    25  or any other method provided for by law or regulation for  soliciting  a
    26  response  from  offerors  intending  to result in a contract pursuant to
    27  this subdivision. The provisions of paragraph (a)  of  this  subdivision
    28  shall  not  apply  for equipment purchased by a covered renewable energy
    29  system prior to the effective date of this section.
    30    (c) The head of the department or agency constructing the public works
    31  may, at his or her sole discretion, provide  for  a  solicitation  of  a
    32  request  for  proposal, invitation for bid, or solicitation of proposal,
    33  or any other method provided for by law or regulation for  soliciting  a
    34  response  from  offerors  intending  to result in a contract pursuant to
    35  this paragraph involving a competitive process in which  the  evaluation
    36  of  competing  bids  gives  significant  consideration in the evaluation
    37  process to the procurement of equipment  and  supplies  from  businesses
    38  located in New York state.
    39    4.  Whenever  changes  are  proposed to any public procurement process
    40  involving the program described in subdivision two of this section,  the
    41  commission  shall  make  simultaneous  recommendations  to the temporary
    42  president of the senate and speaker of the assembly, regarding necessary
    43  changes to this section, if any, in meeting the goals  outlined  in  the
    44  legislative  findings and intent of the chapter of the laws of two thou-
    45  sand twenty-three which added this section.
    46    § 4. Subdivision 1 of section 224-d of the labor  law,  as  separately
    47  amended  by chapters 372 and 375 of the laws of 2022, is amended to read
    48  as follows:
    49    1. For purposes of this section, a "covered renewable  energy  system"
    50  means  (a) a renewable energy system, as such term is defined in section
    51  sixty-six-p of the public service law, with a capacity of  one  or  more
    52  megawatts  alternating  current  and  which  involves the procurement of
    53  renewable energy credits by a public entity, or a third party acting  on
    54  behalf and for the benefit of a public entity; or (b) any "thermal ener-
    55  gy  network" as defined by subdivision twenty-nine of section two of the

        A. 7879                             5

     1  public service law; or (c) any generation facility  authorized  pursuant
     2  to section sixty-six-w of the public service law.
     3    §  5.  No  later than sixty days after the effective date of this act,
     4  the public service commission shall commence a proceeding necessary  and
     5  appropriate  to  implement  the provisions of section 66-w of the public
     6  service law.
     7    § 6. This act shall take effect immediately.
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