•  Summary 
  •  
  •  Actions 
  •  
  •  Committee Votes 
  •  
  •  Floor Votes 
  •  
  •  Memo 
  •  
  •  Text 
  •  
  •  LFIN 
  •  
  •  Chamber Video/Transcript 

S00737 Summary:

BILL NOS00737
 
SAME ASSAME AS A07850
 
SPONSORPARKER
 
COSPNSRHARCKHAM, HOYLMAN-SIGAL
 
MLTSPNSR
 
Add §66-u, amd §66-r, Pub Serv L; amd §224-d, Lab L
 
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.
Go to top    

S00737 Actions:

BILL NOS00737
 
01/06/2023REFERRED TO ENERGY AND TELECOMMUNICATIONS
05/15/2023REPORTED AND COMMITTED TO FINANCE
01/03/2024REFERRED TO ENERGY AND TELECOMMUNICATIONS
Go to top

S00737 Text:



 
                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.
                                                                   LBD03206-01-3

        S. 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,  shall

        S. 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  section
    48  was  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 of

        S. 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.
Go to top