Bill Text: NY S04158 | 2025-2026 | General Assembly | Introduced


Bill Title: Aligns utility regulation with state climate justice and emission reduction targets; provides for a statewide affordable gas transition plan and utility home energy affordable transition programs; repeals provisions relating to continuation of gas service; repeals provisions relating to the sale of indigenous natural gas for generation of electricity.

Spectrum: Partisan Bill (Democrat 30-0)

Status: (Introduced) 2025-02-03 - REFERRED TO ENERGY AND TELECOMMUNICATIONS [S04158 Detail]

Download: New_York-2025-S04158-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          4158

                               2025-2026 Regular Sessions

                    IN SENATE

                                    February 3, 2025
                                       ___________

        Introduced  by  Sens.  KRUEGER,  MAY,  FAHY,  ADDABBO,  BRISPORT, BROUK,
          CLEARE, COMRIE,  COONEY,  FERNANDEZ,  GIANARIS,  GONZALEZ,  GOUNARDES,
          HARCKHAM,  HINCHEY,  HOYLMAN-SIGAL,  JACKSON, KAVANAGH, LIU, MARTINEZ,
          MAYER, MYRIE, RAMOS, RIVERA,  SALAZAR,  SANDERS,  SEPULVEDA,  SERRANO,
          STAVISKY,  WEBB -- read twice and ordered printed, and when printed to
          be committed to the Committee on Energy and Telecommunications

        AN ACT to amend the public service law, the public authorities law,  the
          transportation  corporations  law  and  the  labor law, in relation to
          enacting the NY Home  Energy  Affordable  Transition  Act;  to  repeal
          section 66-b of the public service law relating to continuation of gas
          service; and to repeal section 66-g of the public service law relating
          to the sale of indigenous natural gas for generation of electricity

          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 "NY Home Energy Affordable Transition Act" or the "NY HEAT Act".
     3    § 2. Legislative findings. The legislature finds and declares that:
     4    1.  The  Climate  Leadership and Community Protection Act (CLCPA) sets
     5  forth ambitious mandates to achieve  significant  greenhouse  gas  (GHG)
     6  emission  reductions  across  New  York's  economy,  while  prioritizing
     7  reductions in co-pollutant emissions in  disadvantaged  communities  and
     8  requiring  significant  state investments to bring the affordability and
     9  health benefits of energy efficiency and clean energy to these  communi-
    10  ties.
    11    2.  Buildings  are  the  largest  source of GHG emissions in New York,
    12  contributing approximately one-third of  the  state's  total  emissions.
    13  They  also  produce  significant local air pollution, leading to adverse
    14  health outcomes such as asthma and heart disease, especially  in  disad-
    15  vantaged communities. Reducing emissions and pollution from buildings is
    16  essential  to meeting the CLCPA's climate and equity goals and improving
    17  public health.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05559-04-5

        S. 4158                             2

     1    3. Achieving New York's climate  and  equity  objectives  necessitates
     2  updating  the regulation of gas utilities. Current policies create misa-
     3  lignment between gas system investments and the CLCPA's  2030  and  2050
     4  mandates,  increasing  the  risk  of a costly and disorderly transition.
     5  Strategic  planning  and investment are needed to decarbonize buildings,
     6  right-size the gas system, and ensure coordinated  enhancements  to  the
     7  electric system, enabling equitable and affordable access to clean ener-
     8  gy  solutions for all New Yorkers. Such investments will lead to signif-
     9  icant benefits: the Climate  Action  Council  found  that  the  cost  of
    10  inaction  on  climate  exceeds  the  cost  of  action  by more than $115
    11  billion.
    12    4. Outdated public service laws are misaligned with the state's energy
    13  affordability goals and CLCPA mandates in the following ways:
    14    a. The "utility obligation to serve gas" compels utilities  to  expand
    15  gas infrastructure, making it challenging to redirect investments toward
    16  insulating  and upgrading homes and installing clean energy alternatives
    17  like electrification and thermal energy networks that align with climate
    18  goals while mitigating costs for ratepayers.
    19    b. Mandated system extension allowances require existing ratepayers to
    20  subsidize gas hookups for new customers, costing ratepayers hundreds  of
    21  millions of dollars annually.
    22    c. Utilities are projected to spend $150 billion to replace leak-prone
    23  gas  pipelines.  Through  the  changes  implemented in this act, many of
    24  these investments could be avoided by  redirecting  funds  to  neighbor-
    25  hood-scale  decarbonization  projects. Neighborhood-scale projects offer
    26  the most cost-effective pathway to transition gas customers to  alterna-
    27  tive  heating  and cooling solutions. These projects reduce costs, mini-
    28  mize stranded investments in the  gas  system,  and  enable  coordinated
    29  efforts among utilities, customers, and other stakeholders.
    30    5.  This  legislation,  the  NY  Home Energy Affordable Transition (NY
    31  HEAT) Act, seeks to:
    32    a. Reduce unjust and disproportionate energy cost burdens by  avoiding
    33  unnecessary,  non-strategic,  and  expensive  gas infrastructure invest-
    34  ments, and improving affordability protections.
    35    b. Ensure utility regulations do not work at cross-purposes  with  the
    36  CLCPA.
    37    c.  Provide  the  Public  Service  Commission with clear authority and
    38  direction to  align  utility  planning  with  CLCPA  goals,  proactively
    39  addressing  regulatory  barriers  and recommending necessary legislative
    40  changes.
    41    d. Minimize the need for new gas infrastructure investments  by  redi-
    42  recting ratepayer funds to alternatives including electrification, ther-
    43  mal  energy  networks,  targeted energy efficiency, demand response, and
    44  market transformation measures.
    45    e. Facilitate  a  planned,  neighborhood-scale  transition  away  from
    46  fossil  fuels, avoiding stranded gas infrastructure costs and supporting
    47  coordinated investments that reduce emissions,  increase  affordability,
    48  and create good paying jobs.
    49    f.  Ensure  equitable  access to affordable, clean energy for heating,
    50  cooling, and other  building  needs,  protecting  customers  from  undue
    51  burdens during the transition.
    52    6. This legislation does not impose a ban on the use of gas. It is the
    53  intent  of  the  Legislature  to support a gradual and carefully planned
    54  transition for existing gas customers to cleaner alternatives,  ensuring
    55  affordability, reliability, and equity throughout the process.

        S. 4158                             3

     1    § 3. The public service law is amended by adding two new sections 66-y
     2  and 66-z to read as follows:
     3    §  66-y.  Statewide  affordable gas transition plan.  1. No later than
     4  two years after the effective date of this section, the commission shall
     5  publish a statewide affordable gas transition plan to guide an  orderly,
     6  affordable,  and  equitable  right-sizing of the utility gas system in a
     7  manner that aligns  with,  and  supports  achievement  of,  the  climate
     8  justice and emissions reduction provisions in chapter one hundred six of
     9  the  laws of two thousand nineteen, and such successors in law and func-
    10  tion as may arise from time to time, incorporating in such plan  prudent
    11  investments  and  strategic  opportunities to generate cost efficiencies
    12  for all gas and electric customers and redirect resources toward assist-
    13  ing customers to upgrade their homes and energy  appliances.  Such  plan
    14  shall include, at a minimum:
    15    (a) Targets for the transition of gas system infrastructure and recom-
    16  mendations  for  planning  and investment strategies for the state's gas
    17  corporations to achieve such targets.
    18    (b) General requirements for utility home energy affordable transition
    19  programs pursuant to section  sixty-six-z  of  this  article,  regarding
    20  criteria  for  approval of such programs and neighborhood gas transition
    21  projects implemented as part of such programs, including requirements:
    22    (i) to ensure customers affected  by  a  neighborhood  gas  transition
    23  project  have  continued access to safe and reliable energy services for
    24  heating, cooling, cooking, and water heating;
    25    (ii) for utilities to notify customers affected by a neighborhood  gas
    26  transition project in a timely manner;
    27    (iii)  to  ensure the ability of the electrical grid to safely support
    28  any new electric load created by a  home  energy  affordable  transition
    29  program,  including for utility participation in any coordination activ-
    30  ities regarding grid planning; and
    31    (iv) to prioritize voluntary disconnections from gas service, to mini-
    32  mize the cost of transition for existing gas and electric customers, and
    33  to encourage utilization of existing resources for weatherization, ener-
    34  gy efficiency, and electrification programs available in the state.
    35    (c) In collaboration with the state's gas and  electric  corporations,
    36  identification  of  a  preliminary  list  of neighborhood gas transition
    37  projects best suited for  home  energy  affordable  transition  programs
    38  pursuant to section sixty-six-z of this article.
    39    (d) A review of the public service law and its current rules and poli-
    40  cy  guidance  to identify any law, rule, guidance, or lack thereof, that
    41  may inhibit timely and equitable achievement of the climate justice  and
    42  emission  reduction provisions in chapter one hundred six of the laws of
    43  two thousand nineteen, and such successors in law and  function  as  may
    44  arise from time to time.
    45    2.  In  developing  an affordable gas transition plan pursuant to this
    46  section, the department shall hold no fewer than four public hearings in
    47  different regions of the state.
    48    3. Upon completion, the statewide affordable gas transition plan shall
    49  be made available on the department's website and shall be delivered  to
    50  the  governor, the temporary president of the senate, and the speaker of
    51  the assembly.
    52    § 66-z. Utility home energy affordable  transition  programs.  1.  The
    53  commission shall, for each gas corporation in this state, issue an order
    54  to  develop  home energy affordable transition programs pursuant to this
    55  section, and in accordance with the statewide affordable gas  transition
    56  plan  in  section sixty-six-y of this article, and shall require partic-

        S. 4158                             4

     1  ipation of such gas corporation as necessary  for  implementation.  Such
     2  programs  shall  require  implementation  of neighborhood gas transition
     3  projects for the purpose of decommissioning  discrete  segments  of  the
     4  utility gas system in order to provide for an orderly gas system transi-
     5  tion  to  achieve  consistency  with  the  climate  justice and emission
     6  reduction provisions in chapter one hundred six of the laws of two thou-
     7  sand nineteen, and such successors in law and function as may arise from
     8  time to time.  Development  and  approval  of  such  programs  shall  be
     9  completed  no  later  than  one  year after the statewide affordable gas
    10  transition plan has been published.
    11    2. Prior to January first, two thousand thirty, no  existing  residen-
    12  tial  gas customer, as such term is referenced in section thirty of this
    13  chapter, shall have their gas service discontinued as part of  a  neigh-
    14  borhood  gas  transition  project  implemented  pursuant to this section
    15  except by consent of such customer.
    16    3. Programs shall be  designed  to  maximize  cost  efficiencies  from
    17  avoided  investments in the expansion and maintenance of the gas system,
    18  and redirect resources toward implementation of neighborhood gas transi-
    19  tion projects, including assisting customers to upgrade their homes  and
    20  energy  appliances,  including those used for heating, cooling, cooking,
    21  and water heating, in addition to utilizing state and federal  appliance
    22  and efficiency incentive programs and other available funding streams.
    23    4.  The  commission  shall  only approve programs that ensure that all
    24  affected residential customers will:
    25    (a) have continued access to safe and  reliable  energy  services  for
    26  heating, cooling, cooking, and water heating;
    27    (b)  have access to funding and technical support for the purchase and
    28  installation of customer-owned equipment at low or no cost, as  well  as
    29  for  the  purposes  of  identifying,  planning, and securing services to
    30  undertake weatherization and energy efficiency measures,  and  pre-elec-
    31  trification upgrades, using any resources available for such purposes;
    32    (c)  be given notice at least two years in advance of the cessation of
    33  gas service, and at least every six months subsequently, via  mail  and,
    34  when  applicable,  electronically, and, where feasible, through at least
    35  one in-person contact, and be provided  notification  of  financial  and
    36  technical  assistance  available  to  such customers from the utility or
    37  other state or federal programs to support electrification;
    38    (d) have an opportunity to comment on the  proposed  neighborhood  gas
    39  transition project before it is finalized; and
    40    (e)  be  provided  notice when an adjacent customer connected to their
    41  local gas grid has voluntarily opted to discontinue  service,  via  mail
    42  and, when applicable, electronically.
    43    5. The commission shall require each gas corporation to reevaluate its
    44  existing  plans, policies, and programs related to proactive replacement
    45  of gas system infrastructure based on analyses of discrete  segments  of
    46  the gas system that are most suitable to be prioritized for neighborhood
    47  gas transition projects.
    48    6.  The  commission shall ensure that any program approved pursuant to
    49  this section will not compromise the safety and reliability of the elec-
    50  tric distribution grid or gas distribution system, or result  in  unrea-
    51  sonable  disruption  of service to buildings that are used for an indus-
    52  trial  or  commercial  use  that  is  difficult   to   electrify   using
    53  commercially  available technology or that house an energy intensive and
    54  trade exposed industry, or to critical infrastructure as such terms  are
    55  defined by the commission.

        S. 4158                             5

     1    7. Programs approved pursuant to this section shall not compromise the
     2  ability  of a gas corporation to seek to recover prudent, commission-ap-
     3  proved investments in infrastructure that was used and useful.
     4    8.  Prior to approval, the commission shall consider whether a program
     5  is adequately designed  to  mitigate  potential  financial  hardship  to
     6  affected  residential  customers  in  connection with the replacement of
     7  gas-fired appliances as part of  neighborhood  gas  transition  projects
     8  implemented pursuant to the program.
     9    §  4. Subdivision 1 of section 4 of the public service law, as amended
    10  by chapter 594 of the laws of 2021, is amended to read as follows:
    11    1. There shall be in the department of public service a public service
    12  commission, which shall possess the powers and duties hereinafter speci-
    13  fied, and also all powers necessary or proper to enable it to carry  out
    14  the  purposes  of  this chapter and to enable achievement of the climate
    15  justice and emission reduction provisions in chapter one hundred six  of
    16  the  laws of two thousand nineteen, and such successors in law and func-
    17  tion as may arise from time to time.   The commission shall  consist  of
    18  five  members,  to  be appointed by the governor, by and with the advice
    19  and consent of the senate. A commissioner shall be designated as [chair-
    20  man] chairperson of the commission by the  governor  to  serve  in  such
    21  capacity  at the pleasure of the governor or until [his] the commission-
    22  er's term [as commissioner] expires whichever first occurs. At least one
    23  commissioner shall have experience in utility consumer advocacy. No more
    24  than three commissioners may be members  of  the  same  political  party
    25  unless,  pursuant to action taken under subdivision two of this section,
    26  the number of commissioners shall exceed five, and in such event no more
    27  than four commissioners may be members of the same political party.
    28    § 5. Paragraph b of subdivision 1 of section 5 of the  public  service
    29  law,  as  amended by chapter 155 of the laws of 1970, is amended to read
    30  as follows:
    31    b. To the manufacture, conveying, transportation, sale or distribution
    32  of gas (natural or manufactured or mixture of both) and electricity  for
    33  light, heat, cooling, or power, to gas plants and to electric plants and
    34  to the persons or corporations owning, leasing or operating the same.
    35    §  6.  Section 30 of the public service law, as amended by chapter 686
    36  of the laws of 2002, is amended to read as follows:
    37    § 30. Residential gas, electric and  steam  service  policy.  1.  This
    38  article  shall  apply  to  the  provision of all or any part of the gas,
    39  electric or steam service provided to any residential  customer  by  any
    40  gas,  electric  or steam and municipalities corporation or municipality.
    41  It is hereby declared to be the policy of this state that the  continued
    42  provision of [all or any part of such gas,] electric and steam [service]
    43  services  to  all  residential customers without unreasonable qualifica-
    44  tions or lengthy delays is necessary for the preservation of the  health
    45  and  general  welfare, is consistent with the achievement of the state's
    46  climate justice and emission reduction  goals,  and  is  in  the  public
    47  interest.    It  is  further  the policy of this state that electric and
    48  steam services to all residential customers, and gas service for  exist-
    49  ing  residential customers must be provided in a manner that is safe and
    50  adequate, not unjustly discriminatory or unduly preferential, and in all
    51  respects just and reasonable, while providing for an orderly, affordable
    52  and equitable right-sizing of the utility gas system to achieve consist-
    53  ency with the climate justice and emission reduction provisions in chap-
    54  ter one hundred six of the laws  of  two  thousand  nineteen,  and  such
    55  successors in law and function as may arise from time to time, encourag-

        S. 4158                             6

     1  ing  neighborhood-scale  transitions  and  the  elimination  of  on-site
     2  co-pollutants.
     3    2.  (a)  The  commission shall regulate for the continued provision of
     4  gas service to all  existing  residential  gas  customers,  unless  such
     5  service  is discontinued pursuant to a home energy affordable transition
     6  program approved by the commission pursuant to  section  sixty-six-z  of
     7  this chapter.
     8    (b) For the purposes of this section, any new residential gas customer
     9  purchasing  or  renting  or  moving  into  a  building with existing gas
    10  service, or in which gas service was temporarily interrupted, as defined
    11  by the commission, including  temporary  interruption  for  emergencies,
    12  disasters,  maintenance,  repairs,  renovation, or restoration, shall be
    13  treated as an existing customer unless and until such service is discon-
    14  tinued pursuant to a home energy affordable transition program  approved
    15  by the commission.
    16    3.  (a) Within one year of the effective date of this subdivision, the
    17  commission shall develop a plan to ensure that all residential customers
    18  be adequately protected from bearing an energy burden greater  than  six
    19  percent of their household income.  In developing such plan, the commis-
    20  sion  shall  evaluate available tools, including but not limited to bill
    21  discounts, bill credits, redirection of avoided costs of utility infras-
    22  tructure, rate making strategies, energy efficiency, distributed renewa-
    23  ble energy, and potential budgetary measures, prioritizing mitigation of
    24  rate increases on residential customers. Beginning in the calendar  year
    25  following the effective date of this subdivision, and continuing annual-
    26  ly on or before October first, the commission shall report to the gover-
    27  nor and legislature on the actions it has taken and progress it has made
    28  toward implementing the plan developed pursuant to this paragraph.  Such
    29  report shall include but not be limited to recommendations regarding any
    30  additional  legislative  or budgetary measures necessary to achieve such
    31  goal. The annual report shall also  be  published  on  the  commission's
    32  website.  In implementing the plan developed pursuant to this paragraph,
    33  the commission shall prioritize  low-to-moderate  income  customers,  as
    34  defined  by the commission, including those who are already eligible for
    35  the commission's energy affordability program.
    36    (b) In order to ensure that all residential  customers  be  adequately
    37  protected  from  bearing  an  energy  burden greater than six percent of
    38  their household income, the commission may authorize the use of  reason-
    39  able  per-customer  caps  on  the  amount  of  energy  subject  to  such
    40  protections. The commission may  also  establish  a  reasonable  cap  on
    41  collections from ratepayers to fund the commission's energy affordabili-
    42  ty  program  or similar successor programs provided such cap is not less
    43  than three percent of total electric or gas revenues for sales  to  end-
    44  use customers for each utility.
    45    4. Nothing in this article or any other law of New York state shall be
    46  interpreted  or  otherwise  construed  as preempting a municipality from
    47  adopting building codes or other regulations regarding on-site emissions
    48  for new and existing buildings within their localities.
    49    § 7. Subdivision 1 of section 1020-cc of the public  authorities  law,
    50  as  amended  by section 11 of part A of chapter 173 of the laws of 2013,
    51  is amended to read as follows:
    52    1. All contracts of the authority shall be subject to  the  provisions
    53  of  the  state  finance law relating to contracts made by the state. The
    54  authority shall also establish rules and  regulations  with  respect  to
    55  providing  to  its residential gas, electric and steam utility customers
    56  those rights and protections provided in article two  and  sections  one

        S. 4158                             7

     1  hundred seventeen and one hundred eighteen of the public service law and
     2  section  one  hundred thirty-one-s of the social services law.  It shall
     3  be a goal of the authority that all residential customers be  adequately
     4  protected  from  bearing  an  energy  burden greater than six percent of
     5  their household income pursuant to subdivision three of  section  thirty
     6  of  the  public  service  law. The authority shall conform to any safety
     7  standards regarding manual lockable disconnect switches for solar  elec-
     8  tric  generating  equipment established by the public service commission
     9  pursuant to subparagraph (ii) of paragraph (a) of subdivision  five  and
    10  subparagraph  (ii)  of  paragraph  (a)  of subdivision five-a of section
    11  sixty-six-j of the public service law. The authority shall let contracts
    12  for construction or purchase of supplies, materials, or equipment pursu-
    13  ant to section one hundred three and paragraph (e) of  subdivision  four
    14  of section one hundred twenty-w of the general municipal law.
    15    §  8. Subdivisions 1, 3 and 4 of section 31 of the public service law,
    16  as added by chapter 713 of the laws of  1981,  are  amended  and  a  new
    17  subdivision 4-a is added to read as follows:
    18    1.  Every  gas corporation, electric corporation or municipality shall
    19  provide residential service upon the  oral  or  written  request  of  an
    20  applicant,  provided  that  any  residential  gas  service shall only be
    21  provided in accordance with section thirty of this article, and provided
    22  further that the commission may require that requests for service be  in
    23  writing  under  circumstances  as  it  deems necessary and proper as set
    24  forth by regulation, and provided further that the applicant:
    25    (a) makes full payment for residential utility service provided  to  a
    26  prior account in [his] the applicant's name; or
    27    (b)  agrees  to  make  payments  under  a deferred payment plan of any
    28  amounts due for service to a prior account in [his] the applicant's name
    29  and makes a down payment based on criteria  to  be  established  by  the
    30  commission.  No such down payment shall exceed one-half of any money due
    31  from an applicant for residential utility service, or three months aver-
    32  age billing, whichever is less; or
    33    (c) is a recipient of public assistance, supplemental security  income
    34  or  additional state payments pursuant to the social services law, or is
    35  an applicant for such assistance, income or payments,  and  the  utility
    36  corporation or the municipality receives payment from, or is notified of
    37  the  applicant's eligibility for utility payments by the social services
    38  official of the social services district in which  such  person  resides
    39  for  amounts due for service to a prior account in the applicant's name,
    40  together with guarantee of future payments to the extent  authorized  by
    41  the social services law; and
    42    (d) receives clear, timely information from the gas corporation, elec-
    43  tric corporation,  municipality, or retail energy service company, writ-
    44  ten in plain language, available in the top twelve most common non-Engl-
    45  ish  languages  spoken  by  limited  English proficient New Yorkers, and
    46  approved by the commission after stakeholder input,  on  incentives  and
    47  opportunities for installing energy-efficient electric heating and cool-
    48  ing  technologies,  weatherization, demand-side management, and distrib-
    49  uted energy resource programs.
    50    (e) nothing in this subdivision shall be construed to prohibit  exist-
    51  ing gas customers, in accordance with section thirty of this article and
    52  subject  to  any  other  regulations implemented by the commission, from
    53  reconnecting to the gas distribution system following a gas interruption
    54  due to emergency repairs or remediation of leaking equipment.
    55    3. Subject to the requirements of subdivisions four, four-a  and  five
    56  of  this section, and in accordance with section thirty of this article,

        S. 4158                             8

     1  whenever a residential customer moves to  a  new  residence  within  the
     2  service  territory of the same utility corporation or municipality, [he]
     3  the applicant shall be eligible to receive service at the new  residence
     4  and  such  service  shall be considered a continuation of service in all
     5  respects except for the purposes of section thirty of this article, with
     6  any deferred payment agreement honored, and  with  all  rights  of  such
     7  customer  and  such  utility  corporation provided by this article unim-
     8  paired.
     9    4. In the case of any application for electric service to  a  building
    10  which  is  not supplied with electricity [or gas], a utility corporation
    11  or municipality shall be obligated to provide electric service to such a
    12  building, provided however, that the commission may  require  applicants
    13  for service to buildings located in excess of one hundred feet from [gas
    14  or]  electric transmission lines to pay or agree in writing to pay mate-
    15  rial and installation costs relating to the  applicant's  proportion  of
    16  the pipe, conduit, duct or wire, or other facilities to be installed.
    17    4-a.  In  the  case  of  any application for gas service to a building
    18  which is not supplied with gas, a utility  corporation  or  municipality
    19  shall be obligated to provide gas service to such building in accordance
    20  with  commission regulation, provided however, that the commission shall
    21  require applicants for gas service to such building to pay or  agree  in
    22  writing  to  pay material and installation costs relating to the pipe or
    23  other facilities to be installed to enable service to the applicant.
    24    § 9. Section 12 of the transportation corporations law, as  separately
    25  amended  by chapters 713 and 895 of the laws of 1981, is amended to read
    26  as follows:
    27    § 12. [Gas and electricity] Electricity must be supplied  on  applica-
    28  tion.  Except  in  the  case  of  an application for residential utility
    29  service pursuant to article two of the public service law, upon  written
    30  application  of the owner or occupant of any building within one hundred
    31  feet of any [main of a gas corporation or gas and electric  corporation,
    32  or  a]  line of an electric corporation or gas and electric corporation,
    33  appropriate to the service requested, and payment by [him] the applicant
    34  of all money due from [him] the applicant to the corporation,  it  shall
    35  supply  [gas  or]  electricity  as  may  be required for [lighting] such
    36  building, notwithstanding there be rent or compensation in  arrears  for
    37  gas  or  electricity  supplied,  or  for  meter,  wire, pipe or fittings
    38  furnished, to a former occupant thereof, unless such owner  or  occupant
    39  shall  have  undertaken  or agreed with the former occupant to pay or to
    40  exonerate [him] the former occupant from the payment  of  such  arrears,
    41  and shall refuse or neglect to pay the same; and if for the space of ten
    42  days  after  such  application,  and  the deposit of a reasonable sum as
    43  provided in the next section, if required, the corporation shall  refuse
    44  or  neglect  to  supply gas or [electric light] electricity as required,
    45  such corporation shall forfeit and pay to the applicant the sum  of  ten
    46  dollars,  and  the  further sum of five dollars for every day thereafter
    47  during which such refusal or neglect shall continue;  provided  that  no
    48  such corporation shall be required to lay service pipes or wires for the
    49  purpose  of  supplying  gas or electric light to any applicant where the
    50  ground in which such pipe or wire  is  required  to  be  laid  shall  be
    51  frozen, or shall otherwise present serious obstacles to laying the same;
    52  nor unless the applicant, if required, shall deposit in advance with the
    53  corporation  a  sum  of money sufficient to pay the cost of [his propor-
    54  tion] the applicant's  portion  of  the  pipe,  conduit,  duct  or  wire
    55  required  to  be  installed, and the expense of the installation of such
    56  portion.

        S. 4158                             9

     1    § 10. The transportation corporations law is amended by adding  a  new
     2  section 13 to read as follows:
     3    §  13.  Gas must be supplied in accordance with public service commis-
     4  sion rules and regulations. Except in the case  of  an  application  for
     5  residential  utility  service  pursuant  to  article  two  of the public
     6  service law, upon written application of the  owner or occupant  of  any
     7  building within one hundred feet of any main of a gas corporation or gas
     8  and  electric  corporation  appropriate  to  the  service requested, and
     9  payment by the applicant of all money due  from  the  applicant  to  the
    10  corporation,  it  shall  supply gas for such building in accordance with
    11  public service commission regulations, notwithstanding there be rent  or
    12  compensation in arrears for gas supplied, or for meter, pipe or fittings
    13  furnished,  to  a former occupant thereof, unless such owner or occupant
    14  shall have undertaken or agreed with the former occupant to  pay  or  to
    15  exonerate  the  former  occupant  from  the payment of such arrears, and
    16  shall refuse or neglect to pay the same; and if for  the  space  of  ten
    17  days  after  such  application,  and the deposit of a reasonable sum, if
    18  required, the corporation shall refuse  or  neglect  to  supply  gas  as
    19  required  pursuant  to  public service commission rules and regulations,
    20  such corporation shall forfeit and pay to the applicant the sum  of  ten
    21  dollars,  and  the  further sum of five dollars for every day thereafter
    22  during which such refusal or neglect shall continue;  provided  that  no
    23  such  corporation shall be required to lay service pipes for the purpose
    24  of supplying gas to any applicant where the ground in which  such  pipes
    25  are  required  to  be  laid  shall be frozen, or shall otherwise present
    26  serious obstacles to laying the same; nor  unless  the  applicant  shall
    27  deposit in advance with the corporation a sum of money sufficient to pay
    28  the material and installation costs relating to the pipe or other facil-
    29  ities to be installed to enable service to the applicant.
    30    §  11. Section 66 of the public service law is amended by adding a new
    31  subdivision 12-e to read as follows:
    32    12-e. The commission shall review the  capital  construction  plan  of
    33  each  gas  corporation  and  establish a process to examine the feasible
    34  alternatives to such construction in order to achieve  consistency  with
    35  the  climate  justice  and  emission reduction provisions in chapter one
    36  hundred six of the laws of two thousand nineteen, and such successors in
    37  law and function as may arise from time to time, and to align  with  the
    38  statewide affordable gas transition plan pursuant to section sixty-six-y
    39  of  this article. The commission may require participation in such proc-
    40  ess by each electric corporation with a  service  area  overlapping  the
    41  service  area  of the gas corporation, and the commission shall have the
    42  power to require any such electric corporation to participate in  alter-
    43  natives  to gas capital construction, including participation in financ-
    44  ing. Any costs incurred by such electric  corporation  for  such  corpo-
    45  ration's  participation  shall  be  subject  to  an opportunity for full
    46  recovery, as determined by the commission.
    47    § 12. Section 66-b of the public service law is REPEALED.
    48    § 13. The public service law is amended by adding a new  section  66-x
    49  to read as follows:
    50    §  66-x.    Expansion  of  gas  company service territories. Except as
    51  provided in this section, and notwithstanding  any  other  provision  of
    52  this  chapter, after December thirty-first, two thousand twenty-six, the
    53  commission shall not grant an amendment of a gas  company's  certificate
    54  of public convenience and necessity that expands a gas company's service
    55  territory  in  order  to  extend  gas  plant and the availability of gas
    56  service into geographic areas where gas service was not available  prior

        S. 4158                            10

     1  to  such date. The commission may authorize exceptions to the policy set
     2  forth in this section on a case-by-case basis, provided that the commis-
     3  sion finds that the amendment of the certificate of  public  convenience
     4  and  necessity  is  limited  to a project that serves a compelling state
     5  interest, alternatives to gas service are either not technically  feasi-
     6  ble  or  prohibitively expensive, and that the project will be completed
     7  and put into service not later than December thirty-first, two  thousand
     8  twenty-eight.
     9    § 14. Section 66-g of the public service law is REPEALED.
    10    §  15.  Subdivision 1 of section 224-d of the labor law, as amended by
    11  section 31 of part O of chapter 58 of the laws of 2024, is amended and a
    12  new subdivision 9 is added to read as follows:
    13    1. For purposes of this section, a "covered renewable  energy  system"
    14  means  (a) a renewable energy system, as such term is defined in section
    15  sixty-six-p of the public service law, with a capacity of  one  or  more
    16  megawatts  alternating  current  and  which  involves the procurement of
    17  renewable energy credits by a public entity, or a company or corporation
    18  provided in subdivisions twenty-three and twenty-four of section two  of
    19  the  public  service  law, or a third party acting on behalf and for the
    20  benefit of a public entity; (b) any "thermal energy network" as  defined
    21  by subdivision twenty-nine of section two of the public service law; (c)
    22  any  offshore  wind  supply  chain project, including but not limited to
    23  port infrastructure, primary component manufacturing, finished component
    24  manufacturing, subassembly manufacturing, subcomponent manufacturing, or
    25  raw material producers, or a combination thereof receiving direct  fund-
    26  ing  from  the  New York state energy research and development authority
    27  pursuant to an award under a New York state energy research and develop-
    28  ment authority solicitation; [or]  (d)  a  "major  utility  transmission
    29  facility"  as  such term is defined by section one hundred twenty of the
    30  public service law; or  (e)  any  covered  neighborhood  gas  transition
    31  project, as defined by subdivision nine of this section.
    32    9.  For  purposes of this section, a "covered neighborhood gas transi-
    33  tion project" shall mean a project performed by contractors  or  subcon-
    34  tractors  hired  directly  by  a  public  utility company, as defined by
    35  subdivision twenty-three of section two of the public  service  law,  to
    36  ensure  that customers permanently transitioning off utility gas service
    37  as part of a home  energy  affordable  transition  program  pursuant  to
    38  section  sixty-six-z  of the public service law have continued access to
    39  safe and reliable energy services for  heating,  cooling,  cooking,  and
    40  water  heating.  A covered neighborhood gas transition project shall not
    41  include a project performed under private contract with an entity  other
    42  than  a  public  utility  company,  even  if  such  entity or contractor
    43  receives financial and/or technical support from a public utility compa-
    44  ny, including for the purchase and installation of customer-owned equip-
    45  ment.
    46    § 16. Severability. If any word, phrase, clause, sentence,  paragraph,
    47  section, or part of this act shall be adjudged by any court of competent
    48  jurisdiction  to  be invalid, such judgment shall not affect, impair, or
    49  invalidate the remainder thereof, but shall be confined in its operation
    50  to the word, phrase, clause, sentence, paragraph, section, or part ther-
    51  eof directly involved in the controversy in which  such  judgment  shall
    52  have been rendered. It is hereby declared to be the intent of the legis-
    53  lature  that  this  act  would  have  been  enacted even if such invalid
    54  provisions had not been included herein.
    55    § 17. This act shall take effect immediately.
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