Bill Text: NY A09531 | 2021-2022 | General Assembly | Amended
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 2-0)
Status: (Introduced - Dead) 2022-05-24 - amended on third reading (t) 9531a [A09531 Detail]
Download: New_York-2021-A09531-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 9531--A R. R. 422 IN ASSEMBLY March 16, 2022 ___________ Introduced by M. of A. CUSICK, GUNTHER -- read once and referred to the Committee on Energy -- reported and referred to the Committee on Rules -- amended on the special order of third reading, ordered reprinted as amended, retaining its place on the special order of third reading 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. 23 6. New York state has a proprietary interest in these projects being 24 efficiently built and operated without unnecessary disruptions, which 25 justifies the use of project labor agreements and labor peace agree- 26 ments. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD14768-03-2A. 9531--A 2 1 § 2. The public service law is amended by adding a new section 66-t to 2 read as follows: 3 § 66-t. Regulated large scale renewable generation. 1. In order to 4 support the state in meeting state energy-related goals and standards, 5 corporations subject to the provisions of this article providing retail 6 electric service shall be authorized to own and operate renewable energy 7 generating facilities in New York state. Such corporations shall be 8 authorized to own and operate such facilities individually or in part- 9 nership with other persons doing business in New York. 10 2. A corporation owning and operating a renewable energy generation 11 facility pursuant to this section shall provide all net revenues from 12 such facility to low-income customers in the form of bill credits, which 13 shall be in addition to any other program or benefit offered by the 14 corporation to assist such customers. 15 3. In addition to the provisions of subdivision two of this section, 16 any renewable energy generating facility owned by such a corporation 17 shall be: 18 (a) subject to commission oversight in order to ensure that: (i) the 19 power generated at such facilities remains in-state for the benefit of 20 customers and the state; (ii) the power generated at such facilities 21 shall not be exported out-of-state; and (iii) any repowering of such 22 generating facilities shall comply with all requirements of this 23 section; 24 (b) built, pursuant to a competitive third-party bidding process, 25 which shall be issued by the corporation; 26 (c) subject to section sixty-six-r of this article and section two 27 hundred twenty-four-d of the labor law; and 28 (d) owned and operated in a manner that provides beneficial cost and 29 rate impacts to customers. 30 4. The commission shall establish a generation capacity limit for the 31 total generation capacity owned by corporations pursuant to this 32 section. The total generation capacity shall not exceed twenty-five 33 percent of the total generation capacity needed to achieve the renewable 34 energy goals described in section sixty-six-p of this article. 35 5. The commission shall issue such orders, rules and regulations as 36 may be necessary and appropriate to implement this section. 37 § 3. The public service law is amended by adding a new section 66-u to 38 read as follows: 39 § 66-u. Labor agreements and labor peace agreements. 1. For the 40 purposes of this section: 41 (a) "covered renewable energy system" means a renewable energy system, 42 as such term is defined in section sixty-six-p of this article, with a 43 capacity of greater than five megawatts alternating current and which 44 involves the procurement of renewable energy credits by a public entity, 45 or a third party acting on behalf of and for the benefit of a public 46 entity. "Covered renewable energy system" shall also include any gener- 47 ation facility authorized pursuant to section sixty-six-t of this arti- 48 cle; 49 (b) "labor peace agreement" means an agreement between an entity and 50 labor organization that, at a minimum, protects the state's proprietary 51 interests by prohibiting labor organizations and members from engaging 52 in picketing, work stoppages, boycotts, and any other economic interfer- 53 ence with the relevant renewable energy system; 54 (c) "public entity" shall include, but shall not be limited to, the 55 state, a local development corporation as defined in subdivision eight 56 of section eighteen hundred one of the public authorities law or sectionA. 9531--A 3 1 fourteen hundred eleven of the not-for-profit corporation law, a munici- 2 pal corporation as defined in section one hundred nineteen-n of the 3 general municipal law, an industrial development agency formed pursuant 4 to article eighteen-A of the general municipal law or industrial devel- 5 opment authorities formed pursuant to article eight of the public 6 authorities law, and any state, local or interstate or international 7 authorities as defined in section two of the public authorities law; and 8 shall include any trust created by any such entities; and 9 (d) "renewable energy credits agreement" shall mean any public entity 10 contract that provides production-based payments to a renewable energy 11 project as defined in this section. 12 2. The commission shall require that the owner of a covered renewable 13 energy system, or a third party acting on the owner's behalf, as an 14 ongoing condition of any renewable energy credits agreement with a 15 public entity, or as an ongoing condition of its authorization to oper- 16 ate and support the state in meeting energy-related goals, shall stipu- 17 late to the fiscal officer that it will enter into a labor peace agree- 18 ment with at least one bona fide labor organization either where such 19 bona fide labor organization is actively representing employees provid- 20 ing necessary operations and maintenance services for the renewable 21 energy system at the time of such agreement or upon notice by a bona 22 fide labor organization that is attempting to represent employees who 23 will provide necessary operations and maintenance services for the 24 renewable energy system employed in the state. The maintenance of such a 25 labor peace agreement shall be an ongoing material condition of any 26 continuation of payments under a renewable energy credits agreement or 27 authorization by the commission. 28 3. (a)(i) Any public entity in each contract for construction, recon- 29 struction, alteration, repair, improvement or maintenance of a covered 30 renewable energy system which involves the procurement of a renewable 31 energy credits agreement by a public entity, or a third party acting on 32 behalf and for the benefit of a public entity, the "public work" for the 33 purposes of this subdivision, shall ensure that such contract shall 34 contain a provision that the iron and structural steel used or supplied 35 in the performance of the contract or any subcontract thereto and that 36 is permanently incorporated into the public work, shall be produced or 37 made in whole or substantial part in the United States, its territories 38 or possessions. In the case of a structural iron or structural steel 39 product all manufacturing shall take place in the United States, from 40 the initial melting stage through the application of coatings, except 41 metallurgical processes involving the refinement of steel additives. For 42 the purposes of this subdivision, "permanently incorporated" shall mean 43 an iron or steel product that is required to remain in place at the end 44 of the project contract, in a fixed location, affixed to the public work 45 to which it was incorporated. Iron and steel products that are capable 46 of being moved from one location to another are not permanently incorpo- 47 rated into a public work. 48 (ii) Any corporation in each contract for construction, recon- 49 struction, alteration, repair, improvement or maintenance of a covered 50 renewable energy system, or a third party acting on behalf and for the 51 benefit of the corporation, the "public work" for the purposes of this 52 subdivision, shall ensure that such contract shall contain a provision 53 that the iron and structural steel used or supplied in the performance 54 of the contract or any subcontract thereto and that is permanently 55 incorporated into the public work, shall be produced or made in whole or 56 substantial part in the United States, its territories or possessions.A. 9531--A 4 1 In the case of a structural iron or structural steel product all manu- 2 facturing must take place in the United States, from the initial melting 3 stage through the application of coatings, except metallurgical proc- 4 esses involving the refinement of steel additives. Iron and steel 5 products that are capable of being moved from one location to another 6 are not permanently incorporated into a public work. 7 (b) The provisions of paragraph (a) of this subdivision shall not 8 apply if the head of the department or agency or corporation, under 9 subparagraph (i) of paragraph (a) of this subdivision constructing the 10 public works, in his or her sole discretion, determines that the 11 provisions would not be in the public interest, would result in unrea- 12 sonable costs, or that obtaining such steel or iron in the United States 13 would increase the cost of the contract by an unreasonable amount, or 14 such iron or steel, including without limitation structural iron and 15 structural steel cannot be produced or made in the United States in 16 sufficient and reasonably available quantities and of satisfactory qual- 17 ity. The head of the department or agency constructing the public works 18 shall include this determination in an advertisement or solicitation of 19 a request for proposal, invitation for bid, or solicitation of proposal, 20 or any other method provided for by law or regulation for soliciting a 21 response from offerors intending to result in a contract pursuant to 22 this subdivision. The provisions of paragraph (a) of this subdivision 23 shall not apply for equipment purchased by a covered renewable energy 24 system prior to the effective date of this section. 25 (c) The head of the department or agency constructing the public works 26 may, at his or her sole discretion, provide for a solicitation of a 27 request for proposal, invitation for bid, or solicitation of proposal, 28 or any other method provided for by law or regulation for soliciting a 29 response from offerors intending to result in a contract pursuant to 30 this paragraph involving a competitive process in which the evaluation 31 of competing bids gives significant consideration in the evaluation 32 process to the procurement of equipment and supplies from businesses 33 located in New York state. 34 4. Whenever changes are proposed to any public procurement process 35 involving the program described in subdivision two of this section, the 36 commission shall make simultaneous recommendations to the temporary 37 president of the senate and speaker of the assembly, regarding necessary 38 changes to this section, if any, in meeting the goals outlined in the 39 legislative findings and intent of the chapter of the laws of two thou- 40 sand twenty-two which added this section. 41 § 4. Subdivision 1 of section 224-d of the labor law, as added by 42 section 2 of part AA of chapter 56 of the laws of 2021, is amended to 43 read as follows: 44 1. For purposes of this section, a "covered renewable energy system" 45 means a renewable energy system, as such term is defined in section 46 sixty-six-p of the public service law, with a capacity of greater than 47 five megawatts alternating current and which involves the procurement of 48 renewable energy credits by a public entity, or a third party acting on 49 behalf and for the benefit of a public entity. "Covered renewable energy 50 system" shall also include any generation facility authorized pursuant 51 to section sixty-six-t of the public service law. 52 § 5. No later than sixty days after the effective date of this act, 53 the public service commission shall commence a proceeding necessary and 54 appropriate to implement the provisions of section 66-t of the public 55 service law. 56 § 6. This act shall take effect immediately.