Enacts the "home utility weatherization jobs act"; requires each gas corporation, electric corporation, or combination gas or electric corporation to submit to the public service commission for review and approval at least one and up to ten neighborhood scale weatherization and electrification-ready projects.
STATE OF NEW YORK
________________________________________________________________________
9735
IN SENATE
April 2, 2026
___________
Introduced by Sen. KAVANAGH -- read twice and ordered printed, and when
printed to be committed to the Committee on Energy and Telecommuni-
cations
AN ACT to amend the public service law, in relation to enacting the
"home utility weatherization jobs act"
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 "home utility weatherization jobs act".
3 § 2. Legislative findings and intent. The legislature finds and
4 declares that:
5 (a) The Climate Leadership and Community Protection Act (CLCPA)
6 requires significant reductions in greenhouse gas emissions, including a
7 40% reduction in statewide greenhouse gas emissions by 2030 and an 85%
8 reduction in statewide greenhouse gas emissions by 2050;
9 (b) The Climate Action Council Final Scoping Plan (Plan) deems it
10 essential that buildings make significant investments in energy effi-
11 ciency, and the Plan's integration analysis demonstrates that widespread
12 improvements to building envelope will reduce energy demand from the
13 building sector by 30% to 50% by 2050;
14 (c) Energy efficiency is and will continue to be a key and necessary
15 component of achieving the CLCPA's greenhouse gas emissions targets and
16 has proven to be one of the most cost-effective strategies available;
17 (d) Weatherization efforts that prioritize a whole-building approach
18 to reducing energy needs, such as through building envelope enhance-
19 ments, are an effective way to reduce greenhouse gas emissions while at
20 the same time facilitating further emissions reduction measures such as
21 full electrification or hybrid heating systems by reducing heating load;
22 (e) Improving the integrity of the building envelope through upgrades
23 or retrofits may result in deep energy savings;
24 (f) While existing energy efficiency programs administered by the New
25 York state energy research and development authority and some utilities
26 are available for low- to moderate-income (LMI) customers, there are
27 some gaps in coverage, including LMI tenants who do not live in build-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD02457-04-6
S. 9735 2
1 ings covered by existing LMI programs, individuals who do not qualify as
2 LMI customers, rental properties, and where existing programs do not
3 remove or mitigate up-front financial burdens for customers;
4 (g) Weatherization efforts can provide significant benefits to disad-
5 vantaged and other communities through the reduction of energy usage and
6 decreases in greenhouse gas emissions;
7 (h) Weatherization and energy efficiency projects can promote strong
8 economic development and good jobs for local residents, including resi-
9 dents in disadvantaged communities;
10 (i) Utilities' access to capital and to a trusted workforce able to
11 effectively execute projects, and experience with implementing energy
12 efficiency programs specifically, positions them well to develop and
13 implement programs to weatherize residential buildings; and
14 (j) It is therefore the intent of the legislature to remove legal
15 barriers to utility development of weatherization programs and require
16 the public service commission to authorize utilities to immediately
17 commence piloting the development and implementation of targeted utility
18 weatherization pilot programs to further the goals of the CLCPA.
19 § 3. The public service law is amended by adding a new section 66-x to
20 read as follows:
21 § 66-x. Neighborhood scale weatherization and electrification read-
22 iness. 1. As used in this section:
23 (a) "building" means a residential building or the residential units
24 located within a non-residential building;
25 (b) "building envelope" means the assemblies, components and materials
26 of a building that form the thermal barrier between the interior space
27 of the building and the exterior environment, including but not limited
28 to walls, floors, roofing, foundation, windows and doors;
29 (c) "pre-weatherization work" means any measures necessary to prepare
30 the building for air sealing and insulation including work that
31 addresses applicable code and/or safety requirements that arise during,
32 are identified as a result of, or that would impede the successful
33 completion of the weatherization work being performed, and should
34 include identification of electrification-ready work;
35 (d) "electrification-ready work" means that (i) branch circuits,
36 conduit and/or raceway, wiring, junction boxes, and receptacles for
37 future electric equipment or appliances are properly labeled and
38 installed, as applicable; (ii) physical space is reserved for future
39 electric equipment or appliances; and (iii) electrical capacity and
40 reserved physical space for circuit breakers in the main electrical
41 service panel are properly labeled;
42 (e) "neighborhood scale weatherization and electrification-ready
43 project" means a project implemented by a gas corporation, electric
44 corporation or combination gas and electric corporation to improve the
45 integrity of a series of building envelopes in close geographic proximi-
46 ty following outreach to all buildings within a targeted pilot area,
47 that may include but not be limited to, locating and sealing air leaks,
48 increasing insulation, weatherstripping windows and doors and moisture
49 control such as installing attic vents, and pre-weatherization and/or
50 electrification-ready work;
51 (i) Such projects shall (A) not include the purchase and installation
52 of appliances, including but not limited to, boilers and hot water heat-
53 ers; (B) leverage all local, state, and federal funding available and
54 work in collaboration with New York state energy research and develop-
55 ment authority, the division of homes and community renewal, regional
56 energy hubs, and other partners; (C) be completed at no cost to the
S. 9735 3
1 individual building owner; (D) include pre-weatherization work, to the
2 extent practicable and cost effective. If such pre-weatherization work
3 is not practicable and cost effective, it may be completed at cost to
4 the individual building owner in advance of the neighborhood scale
5 weatherization and electrification-ready project; (E) be in close
6 geographic proximity with a goal of performing work on contiguous build-
7 ings, on a block-by-block or neighborhood basis. Once a targeted pilot
8 area has been approved by the commission for such project, no buildings
9 within that area shall be bypassed for such project without just cause;
10 such proposed building omissions, and the cause for them, shall be
11 presented to the commission, who may approve or disapprove of such omis-
12 sions on a case-by-case basis. The need for pre-weatherization work,
13 and/or weatherization work shall not be accepted as justification for
14 bypassing a building. If there are nearby buildings that, due to envi-
15 ronmental or infrastructure-related factors, can be incorporated into a
16 project in a reasonable, unburdensome manner, these buildings may be
17 included in such project's proposal, and the commission may approve or
18 disapprove of a non-contiguous building's inclusion on a case-by-case
19 basis; and
20 (ii) The gas corporation, electric corporation or combination gas and
21 electric corporation shall share information about electrification read-
22 iness with the building owner, who may then choose whether to have elec-
23 trification-ready work completed as part of the neighborhood scale
24 weatherization and electrification project;
25 (f) "targeted pilot areas" means the specific geographic regions
26 selected for the implementation of each neighborhood scale weatheriza-
27 tion and electrification-ready pilot program. Targeted pilot areas shall
28 be determined by each gas corporation, electric corporation or combina-
29 tion gas and electric corporation. The boundaries of targeted pilot
30 areas shall be drawn with the goal of performing work on contiguous
31 properties on a block-by-block or neighborhood basis;
32 (g) "energy audit" means a review of each building within a series of
33 contiguous buildings for the purpose of building a weatherization and
34 electrification-ready strategy which includes, but is not limited to,
35 identifying air leaks, examining insulation, inspecting all heating and
36 cooling systems and ductwork, and inspecting electrical wiring and iden-
37 tifying electrical capacity. Such audit shall be aligned with industry
38 standards as identified by the department. Documentation of denial of
39 access to a building to complete the review shall qualify as completion
40 for purposes of this section;
41 (h) "project labor agreement" shall mean a pre-hire collective
42 bargaining agreement between a gas corporation, electric corporation,
43 combination of gas and electric corporation or a third party on behalf
44 of such corporation or corporations, and a bona fide building and
45 construction trade labor organization establishing the labor organiza-
46 tion as the collective bargaining representative for all persons who
47 will perform work on a public work project, and which provides that only
48 contractors and subcontractors who sign a pre-negotiated agreement with
49 the labor organization can perform project work. All contractors and
50 subcontractors associated with this work shall be required to utilize an
51 apprenticeship agreement as defined in article twenty-three of the labor
52 law; and
53 (i) "cost-effective" means determining whether the costs of materials
54 and their installation for the energy efficiency and electrification-
55 ready measures for a project will be recovered through (i) savings in
56 energy costs over the design life of the relevant buildings; (ii)
S. 9735 4
1 averted costs related to reduced demand on energy systems and the energy
2 grid including the avoidance of costs related to expanding or maintain-
3 ing energy infrastructure; (iii) secondary effects, including, but not
4 limited to, reductions in greenhouse gas emissions and other pollutants;
5 and (iv) societal benefits, including, but not limited to, averted
6 health costs, workforce development, and the benefits of mitigating
7 disproportionate environmental burdens on disadvantaged communities.
8 2. The commission shall initiate a proceeding within three months of
9 the effective date of this section to support the development of neigh-
10 borhood scale weatherization and electrification-ready projects for the
11 purpose of meeting the greenhouse gas emissions and equity goals of the
12 Climate Leadership and Community Protection Act (CLCPA).
13 3. Within six months of the effective date of this section, each gas
14 corporation, electric corporation, or combination gas and electric
15 corporation shall submit to the commission for review and approval at
16 least one and up to ten neighborhood scale weatherization and electrifi-
17 cation-ready projects. Such projects may be submitted jointly by corpo-
18 rations operating in the same territory. If such projects are submitted
19 jointly, each jointly submitted project shall be considered one half of
20 a project for each corporation for purposes of meeting such requirement
21 of submitting at least one and up to ten projects. At least forty
22 percent of projects shall be in targeted pilot areas located within
23 disadvantaged communities as identified by the climate justice working
24 group. Every proposed project shall be developed to reduce system costs
25 and avoid the potential for infrastructure investments, such as by
26 reducing demand in constrained areas, avoiding costly wire or pipeline
27 upgrades or replacements, reducing peak demand, or other such cost
28 reduction measures. The projects shall be varied in type of region and
29 building typology, to the extent possible. The neighborhood scale weath-
30 erization and electrification-ready projects shall be posted on the
31 commission's website and be subject to a public comment period of no
32 fewer than sixty days. All projects submitted to the commission shall
33 include, but not be limited to, the following: (a) the buildings and
34 customers eligible for the proposed project, which shall include a
35 description of how the proposed project fills existing gaps related to
36 low- to moderate-income customers and other customers in targeted pilot
37 areas; (b) a staffing plan identifying the workforce and specific work
38 to be performed; (c) maps of the locations of these projects, which
39 should target contiguous properties over entire street blocks; (d)
40 proposed total annual costs of the project; (e) projected annual green-
41 house gas emissions reductions resulting from the proposed projects; and
42 (f) the projected savings on infrastructure investment from the
43 reduction in usage. In developing projects, a gas corporation, electric
44 corporation, or combination electric and gas corporation shall coordi-
45 nate with other utility participants and the New York state energy
46 research and development authority.
47 4. Within one year of the effective date of this section, the commis-
48 sion shall determine whether it is in the public interest to approve or
49 modify such neighborhood scale weatherization and electrification-ready
50 projects and shall issue an order directing the implementation of such
51 projects. In determining whether a project is in the public interest,
52 the commission shall consider whether such project: (a) facilitates
53 energy reliability and reduces energy costs for customers in targeted
54 pilot areas; (b) supports the state's achievement of the climate justice
55 and greenhouse gas emissions reduction goals of the CLCPA; and (c)
56 promotes job training and workforce development.
S. 9735 5
1 5. The gas corporation, electric corporation, or combination gas and
2 electric corporation shall collect data to inform strategies for the
3 neighborhood scale weatherization and electrification-ready projects.
4 Such data shall include:
5 (a) for every eligible building: (i) if applicable, the number of
6 vacant units and reason for vacancy, if ascertainable; and (ii) whether
7 an energy audit was agreed to.
8 (b) for buildings that have undergone energy audits: (i) age, type,
9 and estimated retirement date of heating source or heating system; (ii)
10 any deferred maintenance, including, but not limited to: roof repairs,
11 vermiculite in attic, knob-and-tube wiring, mold in attic, water in
12 basement, asbestos tape in basement, and asbestos shingles; and (iii)
13 the results of the energy audit. Such data shall be anonymized and
14 aggregated by zip code and be made available on such gas corporation,
15 electric corporation, or combination gas and electric corporation's
16 website.
17 6. The commission shall authorize each gas corporation, electric
18 corporation or combination gas and electric corporation to fully recover
19 in the context of rate or other duly authorized proceedings the costs
20 associated with each such corporation's neighborhood scale weatheriza-
21 tion and electrification-ready project. Each corporation may also
22 utilize additional sources of funding, including, but not limited to,
23 funding provided by the state. Each gas corporation, electric corpo-
24 ration or combination gas and electric corporation shall defer any unre-
25 covered expenses associated with an approved or modified neighborhood
26 scale weatherization and electrification-ready project as a regulatory
27 asset pending a subsequent rate or other duly authorized proceeding. All
28 unrecovered expense balances shall accrue carrying charges at such
29 corporation's pre-tax approved rate of return.
30 7. Each gas, electric, or combination gas and electric corporation
31 shall report to the commission, on a quarterly basis, and until
32 completion of the neighborhood scale weatherization and electrifica-
33 tion-ready project or enhanced neighborhood scale weatherization and
34 electrification-ready projects as determined by the commission, the
35 status of each project. The commission shall post and make publicly
36 available such reports on its website. The report shall include, but not
37 be limited to: (a) projects completed; (b) barriers to implementation,
38 if any; (c) costs of the projects; (d) number of jobs retained, created
39 or enhanced by the projects; and (e) any other such information the
40 commission deems to be in the public interest.
41 8. Any neighborhood scale weatherization and electrification-ready
42 projects approved or modified under this section shall require that
43 energy audits are conducted by employees of the gas corporation, elec-
44 tric corporation, or combination gas and electric corporation repres-
45 ented by a bona fide labor organization of jurisdiction that is actively
46 engaged in representing the gas corporation, electric corporation, and
47 combination gas and electric corporation employees. The use of contrac-
48 tors is prohibited except as necessary for training or implementation of
49 the projects.
50 9. Every neighborhood scale weatherization and electrification-ready
51 project shall be subject to a project labor agreement.
52 § 4. This act shall take effect immediately.
