S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7371
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               May 18, 2023
                                ___________
 
 Introduced by M. of A. THIELE -- read once and referred to the Committee
   on Energy
 
 AN  ACT  to  amend  the  public service law, in relation to enacting the
   "state and local clean energy partnership"
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1.  Short  title. This act shall be known and may be cited as
 the "state and local clean energy partnership".
   § 2. Legislative findings and statement of  purpose.  The  legislature
 hereby finds, determines and declares:
   1.  In  April 2016, the New York state public service commission ("the
 commission") adopted a CCA Framework Order in Commission Case  14-M-0224
 which  authorized  towns,  villages and cities in New York state to form
 opt-out Community Choice Aggregation ("CCA") Programs.
   2. CCA programs allow municipalities, alone or jointly, to enact local
 laws giving themselves the  requisite  legal  authority  to  enter  into
 competitively-procured  contracts with one or more energy service compa-
 nies in order to act as an aggregator and broker for the sale  of  elec-
 tric  supply,  gas supply, and/or other energy services, to residents of
 that municipality wherein all customers, including residential and  non-
 residential,  are  eligible to participate in the program and shall have
 the option to opt out of participating if desired.
   3. Well-designed CCA programs can empower communities to take  control
 of their energy future; encourage and expand opportunities for customers
 to access Community Distributed Generation ("CDG") programs, particular-
 ly for low- to moderate-income households and renters who may not other-
 wise  have  access  to solar energy; and educate and encourage community
 engagement in energy programs.
   4. Since the adoption of the CCA Framework Order,  CCA  programs  have
 demonstrated  their  potential  as a tool for facilitating engagement by
 communities and retail customers in taking charge of their energy choic-

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11289-02-3
              

 A. 7371                             2
 
 es, securing  competitive  energy  contracts  on  behalf  of  aggregated
 customers,  financially  supporting  the current renewable market and in
 growing the renewable market in New York.
   5.  This  act  is intended to signal the state's continuing support of
 CCA; to recognize the vibrant market created by CCA and  the  tremendous
 progress  achieved  by  those programs in encouraging residential demand
 for renewables and community  participation  in  making  energy  choices
 locally;  to recognize CCA as offering significant new opportunities for
 the state to advance the Climate Act  at  the  municipal  and  community
 level;  and  to  provide  clarity  and confidence necessary to allow the
 commission to expeditiously advance broader deployment  of  CCA  and  to
 incorporate opt-out CDG as part of the CCA framework.
   6.  Moreover,  this  act  is  intended  to level the playing field for
 communities seeking to participate in CCA, to ensure that opt-out CDG is
 authorized within the CCA framework, and to promote fairness  and  equal
 opportunity  for  communities  across  the state to innovate and advance
 Climate Act goals.
   7. Chapter 106 of the laws of 2019 enacted the New York State  climate
 leadership  and community protection act (the "Climate Act") which among
 other things:
   a. Directed the department of environmental conservation to  establish
 statewide  greenhouse gas emissions limits as a percentage of 1990 emis-
 sions as follows: (i) 2020: 60% of 1990 emissions; and (ii) 2050: 15% of
 1990 emissions;
   b. Directed the commission to establish programs  to  require  that  a
 minimum  of  70%  statewide electric generation be produced by renewable
 energy systems by 2030, and that by the year 2040  the  statewide  elec-
 trical demand system will generate zero emissions;
   c.  Directed  the  New  York Climate Justice Working Group to identify
 Disadvantaged Communities which are often overlooked in  climate  policy
 initiatives and to ensure they directly benefit from the State's transi-
 tion to cleaner, greener sources of energy, reduced pollution and clean-
 er air, and economic opportunities created by or in conjunction with the
 Climate Act; and
   d.  Directed  that  Disadvantaged  Communities receive a minimum of 35
 percent (with a goal of 40%) of benefits of investments in clean  energy
 and  energy  efficiency  programs  or  projects in the areas of housing,
 workforce development, pollution  reduction,  low-  and  moderate-income
 energy assistance, energy, transportation, and economic development.
   8. Decisions made by New Yorkers and their communities regarding their
 energy  usage  and  purchasing  significantly  impact the ability of the
 State to achieve the Climate Act's goals and to encourage the deployment
 of distributed energy resources.
   9. Moreover, empowering communities to take control  of  their  energy
 future  through  CCA,  and  to  choose and encourage local deployment of
 renewable energy through opt-out CDG, advances the goals of the  Climate
 Act  at  the local level, encourages local participation in State energy
 initiatives such as the Reforming the Energy Vision, Clean Energy Stand-
 ard, and Climate Act, sends appropriate market signals to drive  invest-
 ment  and  innovation  in  New  York's  energy markets, empowers munici-
 palities to make long-term planning and investment decisions related  to
 energy  opportunities,  and promotes equity and environmental justice by
 leveraging community-level buying power and aggregated  customer  demand
 to  ensure access to CDG credits and other CCA program benefits for low-
 and moderate-income New Yorkers in participating communities.
 A. 7371                             3
 
   10. The Climate Act reaffirms  the  State's  commitment  to  advancing
 social  and environmental equity, and righting past environmental injus-
 tices; this act furthers those commitments by ensuring equal  access  to
 CCA  among historically marginalized communities and prioritizes low-in-
 come  customers  to benefit first from opt-out CDG crediting programs to
 lower their energy bills.
   11. A public policy purpose would be served and the interests  of  the
 people  of  the  state  would  be  advanced by codifying the State's CCA
 programs in law, directing  the  commission  to  streamline  review  and
 approval  of  CCA  programs  consistent with this enactment, encouraging
 community participation in CCA, authorizing CCA  programs  to  integrate
 opt-out CDG into their offerings, and prioritizing access to opt-out CDG
 in Disadvantaged Communities.
   § 3. The public service law is amended by adding a new section 74-c to
 read as follows:
   §  74-C.  COMMUNITY  CHOICE  AGGREGATION  PROGRAMS. 1. AS USED IN THIS
 SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   (A) "COMMUNITY CHOICE AGGREGATION" OR "CCA" MEANS  A  PROGRAM  SERVING
 THE  INTERESTS  OF  ITS  RESIDENTS AND APPROPRIATELY PROTECTING CONSUMER
 DATA, IN WHICH AN ELIGIBLE MUNICIPALITY EITHER ALONE OR JOINTLY, AFTER A
 PUBLIC HEARING HELD FOLLOWING PUBLIC  NOTICE,  EXERCISES  ITS  MUNICIPAL
 HOME RULE LAW AUTHORITY BY ENACTING A LOCAL LAW GIVING ITSELF THE REQUI-
 SITE LEGAL AUTHORITY TO ENTER INTO COMPETITIVELY-PROCURED CONTRACTS WITH
 ONE OR MORE ENERGY SERVICE COMPANIES AND/OR ENERGY SUPPLIERS IN ORDER TO
 ACT  AS  AN  AGGREGATOR  AND  BROKER FOR THE SALE OF ELECTRIC AND/OR GAS
 SUPPLY, AND/OR ALLOCATION OF CDG CREDITS, TO RESIDENTS OF  THAT  MUNICI-
 PALITY.  CCA  PROGRAMS MAY AGGREGATE OR OTHERWISE INTEGRATE OTHER ENERGY
 SERVICES INTO THEIR PROGRAMS.
   (B) "CCA ADMINISTRATOR" MEANS THE  ENTITY  SELECTED  BY  THE  ELIGIBLE
 MUNICIPALITY  OR MUNICIPALITIES TO DESIGN, MANAGE, AND IMPLEMENT THE CCA
 PROGRAM.  ELIGIBLE MUNICIPALITIES MAY OPT TO PERFORM  THE  ROLE  OF  CCA
 ADMINISTRATOR ON THEIR OWN, OR THEY MAY RETAIN AN EXPERT OR OTHER THIRD-
 PARTY TO DO SO ON BEHALF OF THE MUNICIPALITY OR MUNICIPALITIES.
   (C)  "COMMUNITY  DISTRIBUTED  GENERATION"  OR  "CDG" MEANS A COMMUNITY
 SHARED RENEWABLE GENERATION PROGRAM  INVOLVING  AN  ELIGIBLE  GENERATION
 SOURCE,  AS  DEFINED BY THE COMMISSION, LOCATED BEHIND A NON-RESIDENTIAL
 HOST METER WHICH REMOTELY SHARES NET METERING OR OTHER MONETARY  CREDITS
 THROUGH  A MONETARY CREDIT APPLIED TO THE UTILITY BILLS OF PARTICIPATING
 CUSTOMERS.
   (D) "COMMUNITY DISTRIBUTED GENERATION CREDIT" OR  "CDG  CREDIT"  MEANS
 MONTHLY  CREDITS  GENERATED  AND ALLOCATED TO PARTICIPATING CUSTOMERS ON
 THEIR UTILITY BILLS FROM A COMMUNITY DISTRIBUTED GENERATION PROGRAM.
   (E) "DISTRIBUTED ENERGY RESOURCES"  OR  "DER"  REFERS  TO  INITIATIVES
 UNDERTAKEN  UNDER  THE  CLIMATE  LEADERSHIP AND COMMUNITY PROTECTION ACT
 (CLCPA), NEW YORK STATE CLEAN ENERGY STANDARD (CES), OR  SIMILAR  ENERGY
 PROGRAM  WHICH  FURTHER ENGAGE AND/OR REDUCE COST OF SERVICE FOR PARTIC-
 IPATING CONSUMERS, OPTIMIZE SYSTEM BENEFITS, AND/OR ADDRESS  INFRASTRUC-
 TURE  AND DEMAND CHALLENGES INCLUDING, BUT NOT LIMITED TO, LOCAL RENEWA-
 BLE ENERGY PROJECTS, DISTRIBUTED ENERGY  RESOURCES  SUCH  AS  CDG,  PEAK
 DEMAND  MANAGEMENT,  ENERGY EFFICIENCY, DEMAND RESPONSE, ENERGY STORAGE,
 COMMUNITY RESILIENCE MICROGRID PROJECTS,  AND  OTHER  INNOVATIVE  INITI-
 ATIVES.
   (F)  "ELIGIBLE  CUSTOMERS"  MEANS  CUSTOMERS OF ELECTRICITY AND/OR GAS
 SUPPLY ELIGIBLE TO PARTICIPATE IN CCA, EITHER ON AN  OPT-OUT  OR  OPT-IN
 BASIS.
 A. 7371                             4
 
   (G)  "ELIGIBLE  MUNICIPALITY"  MEANS ANY CITY, TOWN, OR VILLAGE, WHICH
 RETAINS THE LEGAL AUTHORITY  TO  ENACT  LOCAL  LAWS  UNDER  SUBPARAGRAPH
 TWELVE OF PARAGRAPH A OF SUBDIVISION ONE OF SECTION TEN OF THE MUNICIPAL
 HOME RULE LAW.
   (H)  "ENERGY  SERVICES" REFERS TO THE PROVISION OF ELECTRIC AND/OR GAS
 ENERGY SUPPLY, CDG CREDITS, OR OTHER DER OFFERINGS.
   (I) "PARTICIPATING CUSTOMERS" MEANS (I) ELIGIBLE  CUSTOMERS  WHO  HAVE
 NOT  OPTED  OUT OF PARTICIPATION IN A CCA PROGRAM, AND/OR (II) CUSTOMERS
 WHO WERE NOT ELIGIBLE TO BE AUTOMATICALLY ENROLLED INTO A CCA PROGRAM ON
 AN OPT-OUT BASIS WHO VOLUNTARILY OPTED INTO SAID PROGRAM.
   (J) "SUPPLIERS" MEANS THE ENTITY OR ENTITIES UNDER CONTRACT  WITH  THE
 CCA  PROGRAM  TO  PROVIDE  ELECTRICITY,  GAS,  CDG CREDITS, AND/OR OTHER
 RELATED ENERGY SERVICES TO PARTICIPATING CUSTOMERS,  INCLUDING  BUT  NOT
 LIMITED  TO  ENERGY SERVICE COMPANIES, GENERATORS OF ELECTRICITY, AND/OR
 OTHER ENTITIES WHO PROCURE AND RESELL ELECTRICITY, GAS AND/OR CDG  CRED-
 ITS.
   2. THE COMMISSION SHALL ESTABLISH BY ORDER, RULES AND/OR REGULATIONS A
 STANDARD  NEW  YORK  STATE CCA PROGRAM, FOR ALL UTILITY SERVICE TERRITO-
 RIES, WHICH PROVIDES THE FOLLOWING:
   (A) ELIGIBLE MUNICIPALITIES WILL CONTINUE TO BE PERMITTED TO FORM,  ON
 THEIR  OWN  OR  IN COOPERATION WITH OTHER ELIGIBLE MUNICIPALITIES, A CCA
 PROGRAM, AFTER PROVIDING PUBLIC NOTICE, HOLDING A PUBLIC HEARING IN  THE
 COMMUNITY AND ADOPTING ENABLING LEGISLATION.
   (B)  ELIGIBLE  MUNICIPALITIES  SHALL HAVE THE ABILITY TO STRUCTURE THE
 CCA PROGRAM TO ENCOMPASS ELIGIBLE CUSTOMERS WITHIN  THE  ENTIRE  MUNICI-
 PALITY OR WITHIN A GEOGRAPHICAL SUBSET OF THE MUNICIPALITY, OR TO CREATE
 MULTIPLE  CCA  PROGRAM  AGGREGATIONS BASED UPON REASONABLE GEOGRAPHIC OR
 UTILITY SERVICE TERRITORY PARAMETERS.
   (C) ELIGIBLE MUNICIPALITIES SHALL BE PERMITTED TO SEEK THE  ASSISTANCE
 OF A THIRD-PARTY TO SERVE AS A CCA ADMINISTRATOR, WHERE SUCH THIRD-PARTY
 SHALL  BE DEEMED A PROVIDER OF PROFESSIONAL SERVICES FOR PURPOSES OF THE
 MUNICIPALITIES' COMPLIANCE WITH SECTION ONE HUNDRED THREE OF THE GENERAL
 MUNICIPAL LAW.
   (D) THE CCA ADMINISTRATOR SHALL BE RESPONSIBLE FOR ENSURING  THAT  THE
 CCA  PROGRAM IS ESTABLISHED TO AGGREGATE ELIGIBLE CUSTOMERS UTILIZING AN
 APPROVED OPT-OUT PROCESS, IN ACCORDANCE WITH REQUIREMENTS ESTABLISHED BY
 THE COMMISSION.
   (E) A CCA PROGRAM MAY SOLICIT, NEGOTIATE AND ENTER INTO CONTRACTS WITH
 SUPPLIERS TO PROVIDE ELECTRICITY, GAS AND/OR CDG CREDITS TO  PARTICIPAT-
 ING  CUSTOMERS  ON  AN  OPT-OUT BASIS, AND MAY OFFER SUCH RELATED ENERGY
 SERVICES AS MAY REASONABLY BE INCLUDED ON AN  OPT-IN  BASIS,  OR  ON  AN
 OPT-OUT  BASIS  AS APPROVED BY THE COMMISSION, INCLUDING BUT NOT LIMITED
 TO ENERGY EFFICIENCY PROGRAMS, DEMAND  RESPONSE,  PEAK  LOAD  REDUCTION,
 ENERGY  MANAGEMENT,  STORAGE,  AND  OTHER  INNOVATIVE ENERGY INITIATIVES
 AIMED AT OPTIMIZING  PROGRAM  BENEFITS,  REDUCING  THE  COST  OF  ENERGY
 SERVICE  FOR  PARTICIPATING CUSTOMERS, OR OTHERWISE FURTHERING THE GOALS
 OF THE CLCPA.
   (F) ELIGIBLE MUNICIPALITIES  SHALL  HAVE  THE  RIGHT,  THROUGH  A  CCA
 PROGRAM,  TO  ENTER  INTO  CONTRACTS AT A PRICE AND CONTRACT TERMS TO BE
 NEGOTIATED AT THE MUNICIPALITIES' DISCRETION TO SERVE THE BEST INTERESTS
 OF THEIR CONSTITUENTS. BEST INTERESTS MAY  INCLUDE  BENEFITS  ASSOCIATED
 WITH ADVANCING ONE OR MORE OF THE CLCPA OBJECTIVES.
   (G)  ELIGIBLE  MUNICIPALITIES  SHALL  HAVE THE RIGHT TO INTEGRATE INTO
 THEIR CCA PROGRAM: (I) OPT-OUT CDG AND/OR  (II)  OTHER  ENERGY  SERVICES
 PROGRAMS  ON  AN OPT-IN BASIS, AT THEIR DISCRETION, EITHER AS STANDALONE
 OFFERINGS OR IN ADDITION TO ENERGY SUPPLY.
 A. 7371                             5
 
   (H) OPT-OUT CDG PROGRAMS SHOULD PRIORITIZE THE GRANTING OF CDG CREDITS
 FIRST TO LOW-INCOME  CUSTOMERS  AND/OR  ELIGIBLE  CUSTOMERS  LOCATED  IN
 DISADVANTAGED  COMMUNITIES DESIGNATED PURSUANT TO SECTION 75-0111 OF THE
 ENVIRONMENTAL CONSERVATION LAW.
   (I)  ALL  CCA  ADMINISTRATORS SHALL ENSURE THAT ELIGIBLE CUSTOMERS ARE
 PROVIDED, IN PLAIN LANGUAGE:   (I)  INFORMATION  REGARDING  THE  OPT-OUT
 PROCESS  FOR CUSTOMERS WHO DO NOT WISH TO PARTICIPATE; (II) INSTRUCTIONS
 FOR VOLUNTARILY OPTING IN TO A CCA  OFFERING  FOR  ENERGY  SERVICES  NOT
 OFFERED  ON  AN  OPT-OUT BASIS AND/OR FOR CUSTOMERS WHO ARE NOT AUTOMAT-
 ICALLY ELIGIBLE TO PARTICIPATE IN CCA OFFERINGS ON AN OPT-OUT BASIS; AND
 (III) INFORMATION FOR ELIGIBLE CUSTOMERS WHO MOVE  INTO  OR  WITHIN  THE
 COMMUNITY  AFTER  THE  CCA  PROGRAM HAS COMMENCED AND/OR WHO MAY WISH TO
 PARTICIPATE IN A CCA PROGRAM.
   (J) CCA PROGRAMS SHALL ADOPT  AND  IMPLEMENT  STANDARD  DATA  SECURITY
 AGREEMENTS  TO  GOVERN  TREATMENT, COLLECTION, STORAGE AND PROTECTION OF
 CUSTOMER DATA, IN ACCORDANCE  WITH  RULES,  REGULATIONS  AND  GUIDELINES
 ESTABLISHED BY THE COMMISSION.
   (K) THE COMMISSION SHALL ESTABLISH REASONABLE AND CONSISTENT REPORTING
 REQUIREMENTS FOR CCA PROGRAMS, MUNICIPALITIES, AND/OR SERVING UTILITIES.
   (L)  THE  COMMISSION  SHALL PERIODICALLY REVIEW THE CCA PROGRAM RULES,
 REPORTING REQUIREMENTS, DATA SECURITY AGREEMENTS, AND/OR OTHER  REQUIRE-
 MENTS  TO  DETERMINE  WHETHER  COSTS OR BURDENS ON CCAS COULD BE REDUCED
 AND/OR CONSUMER PROTECTIONS IMPROVED IN A MANNER  CONSISTENT  WITH  THIS
 SECTION.
   (M)  SUCH  OTHER  REQUIREMENTS AND GUIDELINES AS DEEMED APPROPRIATE BY
 THE COMMISSION.
   3. NO PERSON OR ENTITY SHALL DISADVANTAGE A CCA PROGRAM BY  VIRTUE  OF
 ITS STATUS AS A CCA.
   4. CCA PROGRAMS ESTABLISHED PURSUANT TO THE PROVISIONS OF THIS SECTION
 SHALL BE CONSISTENT WITH THE CLCPA TO THE MAXIMUM EXTENT PRACTICABLE.
   5.  THE COMMISSION SHALL PROMULGATE RULES AND REGULATIONS NECESSARY TO
 IMPLEMENT THIS ACT WITHIN NINETY DAYS OF  THE  EFFECTIVE  DATE  OF  THIS
 SECTION.  THIS  SECTION  SHALL  NOT  CAUSE  INTERRUPTION  OF CURRENT CCA
 PROGRAM OPERATIONS AND, WHERE APPROPRIATE, SHALL PROVIDE A  PROCESS  FOR
 EXISTING CCA PROGRAMS TO INTEGRATE BENEFICIAL MODIFICATIONS INTO CURRENT
 AND/OR FUTURE OPERATIONS CONSISTENT WITH THIS SECTION.
   §  4.  Severability.  If  any provision of this act or the application
 thereof to any person or circumstance is adjudged invalid by a court  of
 competent  jurisdiction,  that  judgment  shall not affect or impair the
 validity of the other provisions of this act or the application  thereof
 to other persons and circumstances.
   § 5. This act shall take effect immediately.