Bill Text: NY S00737 | 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 AND TELECOMMUNICATIONS [S00737 Detail]
Download: New_York-2023-S00737-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 737 2023-2024 Regular Sessions IN SENATE January 6, 2023 ___________ Introduced by Sens. PARKER, HARCKHAM -- read twice and ordered printed, and when printed to be committed to the Committee on Energy and Tele- communications 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. LBD03206-01-3S. 737 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-u to 6 read as follows: 7 § 66-u. 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. Section 66-r of the public service law, as added by section 2-a 42 of part AA of chapter 56 of the laws of 2021, is amended to read as 43 follows: 44 § 66-r. Requirements for certain renewable energy systems. 1. For the 45 purposes of this section, a "covered renewable energy system" means a 46 renewable energy system, as such term is defined in section sixty-six-p 47 of this article, with a capacity of greater than five megawatts alter- 48 nating current and which involves the procurement of renewable energy 49 credits by a public entity, or a third party acting on behalf and for 50 the benefit of a public entity. "Covered renewable energy system" shall 51 also include any generation facility authorized pursuant to section 52 sixty-six-u of this article. 53 2. For purposes of this section, "public entity" shall include, but 54 shall not be limited to, the state, a local development corporation as 55 defined in subdivision eight of section eighteen hundred one of the 56 public authorities law or section fourteen hundred eleven of the not-S. 737 3 1 for-profit corporation law, a municipal corporation as defined in 2 section one hundred nineteen-n of the general municipal law, an indus- 3 trial development agency formed pursuant to article eighteen-A of the 4 general municipal law or industrial development authorities formed 5 pursuant to article eight of the public authorities law, and any state, 6 local or interstate or international authorities as defined in section 7 two of the public authorities law; and shall include any trust created 8 by any such entities. 9 3. The commission shall require that the owner of the covered renewa- 10 ble energy system, or a third party acting on the owner's behalf, as an 11 ongoing condition of any renewable energy credits agreement with a 12 public entity, or as an ongoing condition of its authorization to oper- 13 ate and support the state in meeting energy-related goals, shall stipu- 14 late to the fiscal officer that it will enter into a labor peace agree- 15 ment with at least one bona fide labor organization either where such 16 bona fide labor organization is actively representing employees provid- 17 ing necessary operations and maintenance services for the renewable 18 energy system at the time of such agreement or upon notice by a bona 19 fide labor organization that is attempting to represent employees who 20 will provide necessary operations and maintenance services for the 21 renewable energy system employed in the state. The maintenance of such a 22 labor peace agreement shall be an ongoing material condition of any 23 continuation of payments under a renewable energy credits agreement or 24 authorization by the commission. For purposes of this section "labor 25 peace agreement" means an agreement between an entity and labor organ- 26 ization that, at a minimum, protects the state's proprietary interests 27 by prohibiting labor organizations and members from engaging in picket- 28 ing, work stoppages, boycotts, and any other economic interference with 29 the relevant renewable energy system. "Renewable energy credits agree- 30 ment" shall mean any public entity contract that provides production- 31 based payments to a renewable energy project as defined in this section. 32 4.(a) (1) Any public entity, in each contract for construction, recon- 33 struction, alteration, repair, improvement or maintenance of a covered 34 renewable energy system which involves the procurement of a renewable 35 energy credits agreement by a public entity, or a third party acting on 36 behalf and for the benefit of a public entity, the "public work" for the 37 purposes of this subdivision, shall ensure that such contract shall 38 contain a provision that the iron and structural steel used or supplied 39 in the performance of the contract or any subcontract thereto and that 40 is permanently incorporated into the public work, shall be produced or 41 made in whole or substantial part in the United States, its territories 42 or possessions. In the case of a structural iron or structural steel 43 product all manufacturing must take place in the United States, from the 44 initial melting stage through the application of coatings, except metal- 45 lurgical processes involving the refinement of steel additives. For the 46 purposes of this subdivision, "permanently incorporated" shall mean an 47 iron or steel product that is required to remain in place at the end of 48 the project contract, in a fixed location, affixed to the public work to 49 which it was incorporated. Iron and steel products that are capable of 50 being moved from one location to another are not permanently incorpo- 51 rated into a public work. 52 (2) Any corporation in each contract for construction, reconstruction, 53 alteration, repair, improvement or maintenance of a covered renewable 54 energy system authorized pursuant to section sixty-six-u of this arti- 55 cle, or a third party acting on behalf and for the benefit of the corpo- 56 ration, the "public work" for the purposes of this subdivision, shallS. 737 4 1 ensure that such contract shall contain a provision that the structural 2 iron and structural steel used or supplied in the performance of the 3 contract or any subcontract thereto and that is permanently incorporated 4 into the public work, shall be produced or made in whole or substantial 5 part in the United States, its territories or possessions. In the case 6 of a structural iron or structural steel product all manufacturing must 7 take place in the United States, from the initial melting stage through 8 the application of coatings, except metallurgical processes involving 9 the refinement of steel additives. For the purposes of this subdivision, 10 "permanently incorporated" shall mean an iron or steel product that is 11 required to remain in place at the end of the project contract, in a 12 fixed location, affixed to the public work to which it was incorporated. 13 Iron and steel products that are capable of being moved from one 14 location to another are not permanently incorporated into a public work. 15 (b) The provisions of paragraph (a) of this subdivision shall not 16 apply if the head of the department or agency or corporation under 17 subparagraph one of such paragraph (a) constructing the public works, in 18 his or her sole discretion, determines that the provisions would not be 19 in the public interest, would result in unreasonable costs, or that 20 obtaining such steel or iron in the United States would increase the 21 cost of the contract by an unreasonable amount, or such iron or steel, 22 including without limitation structural iron and structural steel cannot 23 be produced or made in the United States in sufficient and reasonably 24 available quantities and of satisfactory quality. The head of the 25 department or agency constructing the public works shall include this 26 determination in an advertisement or solicitation of a request for 27 proposal, invitation for bid, or solicitation of proposal, or any other 28 method provided for by law or regulation for soliciting a response from 29 offerors intending to result in a contract pursuant to this subdivision. 30 The provisions of paragraph (a) of this subdivision shall not apply for 31 equipment purchased by a covered renewable energy system prior to the 32 effective date of this [chapter] section. 33 (c) The head of the department or agency constructing the public works 34 may, at his or her sole discretion, provide for a solicitation of a 35 request for proposal, invitation for bid, or solicitation of proposal, 36 or any other method provided for by law or regulation for soliciting a 37 response from offerors intending to result in a contract pursuant to 38 this paragraph involving a competitive process in which the evaluation 39 of competing bids gives significant consideration in the evaluation 40 process to the procurement of equipment and supplies from businesses 41 located in New York state. 42 5. Whenever changes are proposed to any public procurement process 43 involving the program described in subdivision two of this section, the 44 commission shall make simultaneous recommendations to the temporary 45 president of the senate and speaker of the assembly, regarding necessary 46 changes to this section, if any, in meeting the goals outlined in the 47 legislative findings and intent of [the chapter by which this section48was enacted] part AA of chapter fifty-six of the laws of two thousand 49 twenty-one. 50 § 4. Subdivision 1 of section 224-d of the labor law, as separately 51 amended by chapters 372 and 375 of the laws of 2022, is amended to read 52 as follows: 53 1. For purposes of this section, a "covered renewable energy system" 54 means (a) a renewable energy system, as such term is defined in section 55 sixty-six-p of the public service law, with a capacity of one or more 56 megawatts alternating current and which involves the procurement ofS. 737 5 1 renewable energy credits by a public entity, or a third party acting on 2 behalf and for the benefit of a public entity; or (b) any "thermal ener- 3 gy network" as defined by subdivision twenty-nine of section two of the 4 public service law; or (c) any "generation facility" as described in 5 section sixty-six-u of the public service law. 6 § 5. No later than sixty days after the effective date of this act, 7 the public service commission shall commence a proceeding necessary and 8 appropriate to implement the provisions of section 66-u of the public 9 service law. 10 § 6. This act shall take effect immediately.
