S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7850
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               July 7, 2023
                                ___________
 
 Introduced by M. of A. McDONALD -- read once and referred to the Commit-
   tee on Energy
 
 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:
 
   Section  1.  Legislative findings and intent. 1. New York state recog-
 nizes the deleterious impacts of climate change  including  increasingly
 frequent catastrophic weather events.
   2.  Pursuant  to the New  York  state climate leadership and community
 protection act (CLCPA), New York  state  seeks  to  dramatically  reduce
 greenhouse  gas  emissions  and move its electric generation from fossil
 fuel-based generation to renewable-based generation. New York state  has
 mandated  that seventy percent of electricity come from renewable energy
 sources by year 2030 and one hundred percent of  electricity  come  from
 carbon neutral sources by 2040.
   3.  Further, New York state recognizes that the current pace of devel-
 opment of in-state renewable energy resources is  insufficient  to  meet
 the state's statutory renewable generation goals on schedule.
   4.  Because  New  York  state seeks to accomplish these energy-related
 goals and standards as soon as practicable allowing regulated  utilities
 to  own  and operate renewable generation is essential to achieving such
 goals and to provide a consistent and affordable supply of  carbon-free,
 renewably generated electricity by 2030, through 2050 and beyond.
   5.  New  York  state  seeks  to continue to develop in-state renewable
 energy projects that will drive down costs, benefit customers  receiving
 retail  electric  delivery  particularly  those customers who are low to
 moderate income.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03206-01-3
 A. 7850                             2
              

 
   6. New York state has a proprietary interest in these  projects  being
 efficiently  built  and  operated without unnecessary disruptions, which
 justifies the use of project labor agreements  and  labor  peace  agree-
 ments.
   § 2. The public service law is amended by adding a new section 66-u to
 read as follows:
   §  66-U.  REGULATED  LARGE  SCALE RENEWABLE GENERATION. 1. IN ORDER TO
 SUPPORT THE STATE IN MEETING STATE ENERGY-RELATED GOALS  AND  STANDARDS,
 CORPORATIONS  SUBJECT TO THE PROVISIONS OF THIS ARTICLE PROVIDING RETAIL
 ELECTRIC SERVICE SHALL BE AUTHORIZED TO OWN AND OPERATE RENEWABLE ENERGY
 GENERATING FACILITIES IN NEW YORK  STATE.  SUCH  CORPORATIONS  SHALL  BE
 AUTHORIZED  TO  OWN AND OPERATE SUCH FACILITIES INDIVIDUALLY OR IN PART-
 NERSHIP WITH OTHER PERSONS DOING BUSINESS IN NEW YORK.
   2. A CORPORATION OWNING AND OPERATING A  RENEWABLE  ENERGY  GENERATION
 FACILITY  PURSUANT  TO  THIS SECTION SHALL PROVIDE ALL NET REVENUES FROM
 SUCH FACILITY TO LOW-INCOME CUSTOMERS IN THE FORM OF BILL CREDITS, WHICH
 SHALL BE IN ADDITION TO ANY OTHER PROGRAM  OR  BENEFIT  OFFERED  BY  THE
 CORPORATION TO ASSIST SUCH CUSTOMERS.
   3.  IN  ADDITION TO THE PROVISIONS OF SUBDIVISION TWO OF THIS SECTION,
 ANY RENEWABLE ENERGY GENERATING FACILITY OWNED  BY  SUCH  A  CORPORATION
 SHALL BE:
   (A)  SUBJECT  TO COMMISSION OVERSIGHT IN ORDER TO ENSURE THAT: (I) THE
 POWER GENERATED AT SUCH FACILITIES REMAINS IN-STATE FOR THE  BENEFIT  OF
 CUSTOMERS  AND  THE  STATE;  (II) THE POWER GENERATED AT SUCH FACILITIES
 SHALL NOT BE EXPORTED OUT-OF-STATE; AND (III)  ANY  REPOWERING  OF  SUCH
 GENERATING  FACILITIES  SHALL  COMPLY  WITH  ALL  REQUIREMENTS  OF  THIS
 SECTION;
   (B) BUILT, PURSUANT TO  A  COMPETITIVE  THIRD-PARTY  BIDDING  PROCESS,
 WHICH SHALL BE ISSUED BY THE CORPORATION;
   (C)  SUBJECT  TO  SECTION  SIXTY-SIX-R OF THIS ARTICLE AND SECTION TWO
 HUNDRED TWENTY-FOUR-D OF THE LABOR LAW; AND
   (D) OWNED AND OPERATED IN A MANNER THAT PROVIDES BENEFICIAL  COST  AND
 RATE IMPACTS TO CUSTOMERS.
   4.  THE COMMISSION SHALL ESTABLISH A GENERATION CAPACITY LIMIT FOR THE
 TOTAL  GENERATION  CAPACITY  OWNED  BY  CORPORATIONS  PURSUANT  TO  THIS
 SECTION.    THE  TOTAL  GENERATION CAPACITY SHALL NOT EXCEED TWENTY-FIVE
 PERCENT OF THE TOTAL GENERATION CAPACITY NEEDED TO ACHIEVE THE RENEWABLE
 ENERGY GOALS DESCRIBED IN SECTION SIXTY-SIX-P OF THIS ARTICLE.
   5. THE COMMISSION SHALL ISSUE SUCH ORDERS, RULES  AND  REGULATIONS  AS
 MAY BE NECESSARY AND APPROPRIATE TO IMPLEMENT THIS SECTION.
   §  3.  Section 66-r of the public service law, as added by section 2-a
 of part AA of chapter 56 of the laws of 2021,  is  amended  to  read  as
 follows:
   §  66-r. Requirements for certain renewable energy systems. 1. For the
 purposes of this section, a "covered renewable energy  system"  means  a
 renewable  energy system, as such term is defined in section sixty-six-p
 of this article, with a capacity of greater than five  megawatts  alter-
 nating  current  and  which involves the procurement of renewable energy
 credits by a public entity, or a third party acting on  behalf  and  for
 the  benefit of a public entity. "COVERED RENEWABLE ENERGY SYSTEM" SHALL
 ALSO INCLUDE ANY GENERATION  FACILITY  AUTHORIZED  PURSUANT  TO  SECTION
 SIXTY-SIX-U OF THIS ARTICLE.
   2.  For  purposes  of this section, "public entity" shall include, but
 shall not be limited to, the state, a local development  corporation  as
 defined  in  subdivision  eight  of  section eighteen hundred one of the
 public authorities law or section fourteen hundred eleven  of  the  not-
 A. 7850                             3

 for-profit  corporation  law,  a  municipal  corporation  as  defined in
 section one hundred nineteen-n of the general municipal law,  an  indus-
 trial  development  agency  formed pursuant to article eighteen-A of the
 general  municipal  law  or  industrial  development  authorities formed
 pursuant to article eight of the public authorities law, and any  state,
 local  or  interstate or international authorities as defined in section
 two of the public authorities law; and shall include any  trust  created
 by any such entities.
   3.  The commission shall require that the owner of the covered renewa-
 ble energy system, or a third party acting on the owner's behalf, as  an
 ongoing  condition  of  any  renewable  energy  credits agreement with a
 public entity, OR AS AN ONGOING CONDITION OF ITS AUTHORIZATION TO  OPER-
 ATE  AND SUPPORT THE STATE IN MEETING ENERGY-RELATED GOALS, shall stipu-
 late to the fiscal officer that it will enter into a labor peace  agree-
 ment  with  at  least one bona fide labor organization either where such
 bona fide labor organization is actively representing employees  provid-
 ing  necessary  operations  and  maintenance  services for the renewable
 energy system at the time of such agreement or upon  notice  by  a  bona
 fide  labor  organization  that is attempting to represent employees who
 will provide necessary  operations  and  maintenance  services  for  the
 renewable energy system employed in the state. The maintenance of such a
 labor  peace  agreement  shall  be  an ongoing material condition of any
 continuation of payments under a renewable energy credits  agreement  OR
 AUTHORIZATION  BY  THE  COMMISSION.  For purposes of this section "labor
 peace agreement" means an agreement between an entity and  labor  organ-
 ization  that,  at a minimum, protects the state's proprietary interests
 by prohibiting labor organizations and members from engaging in  picket-
 ing,  work stoppages, boycotts, and any other economic interference with
 the relevant renewable energy system. "Renewable energy  credits  agree-
 ment"  shall  mean  any public entity contract that provides production-
 based payments to a renewable energy project as defined in this section.
   4.(a) (1) Any public entity, in each contract for construction, recon-
 struction, alteration, repair, improvement or maintenance of  a  covered
 renewable  energy  system  which involves the procurement of a renewable
 energy credits agreement by a public entity, or a third party acting  on
 behalf and for the benefit of a public entity, the "public work" for the
 purposes  of  this  subdivision,  shall  ensure that such contract shall
 contain a provision that the iron and structural steel used or  supplied
 in  the  performance of the contract or any subcontract thereto and that
 is permanently incorporated into the public work, shall be  produced  or
 made  in whole or substantial part in the United States, its territories
 or possessions. In the case of a structural  iron  or  structural  steel
 product all manufacturing must take place in the United States, from the
 initial melting stage through the application of coatings, except metal-
 lurgical  processes involving the refinement of steel additives. For the
 purposes of this subdivision, "permanently incorporated" shall  mean  an
 iron  or steel product that is required to remain in place at the end of
 the project contract, in a fixed location, affixed to the public work to
 which it was incorporated. Iron and steel products that are  capable  of
 being  moved  from  one location to another are not permanently incorpo-
 rated into a public work.
   (2) ANY CORPORATION IN EACH CONTRACT FOR CONSTRUCTION, RECONSTRUCTION,
 ALTERATION, REPAIR, IMPROVEMENT OR MAINTENANCE OF  A  COVERED  RENEWABLE
 ENERGY  SYSTEM  AUTHORIZED PURSUANT TO SECTION SIXTY-SIX-U OF THIS ARTI-
 CLE, OR A THIRD PARTY ACTING ON BEHALF AND FOR THE BENEFIT OF THE CORPO-
 RATION, THE "PUBLIC WORK" FOR THE PURPOSES OF  THIS  SUBDIVISION,  SHALL
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 ENSURE  THAT SUCH CONTRACT SHALL CONTAIN A PROVISION THAT THE STRUCTURAL
 IRON AND STRUCTURAL STEEL USED OR SUPPLIED IN  THE  PERFORMANCE  OF  THE
 CONTRACT OR ANY SUBCONTRACT THERETO AND THAT IS PERMANENTLY INCORPORATED
 INTO  THE PUBLIC WORK, SHALL BE PRODUCED OR MADE IN WHOLE OR SUBSTANTIAL
 PART IN THE UNITED STATES, ITS TERRITORIES OR POSSESSIONS. IN  THE  CASE
 OF  A STRUCTURAL IRON OR STRUCTURAL STEEL PRODUCT ALL MANUFACTURING MUST
 TAKE PLACE IN THE UNITED STATES, FROM THE INITIAL MELTING STAGE  THROUGH
 THE  APPLICATION  OF  COATINGS, EXCEPT METALLURGICAL PROCESSES INVOLVING
 THE REFINEMENT OF STEEL ADDITIVES. FOR THE PURPOSES OF THIS SUBDIVISION,
 "PERMANENTLY INCORPORATED" SHALL MEAN AN IRON OR STEEL PRODUCT  THAT  IS
 REQUIRED  TO  REMAIN  IN  PLACE AT THE END OF THE PROJECT CONTRACT, IN A
 FIXED LOCATION, AFFIXED TO THE PUBLIC WORK TO WHICH IT WAS INCORPORATED.
 IRON AND STEEL PRODUCTS  THAT  ARE  CAPABLE  OF  BEING  MOVED  FROM  ONE
 LOCATION TO ANOTHER ARE NOT PERMANENTLY INCORPORATED INTO A PUBLIC WORK.
   (b)  The  provisions  of  paragraph  (a) of this subdivision shall not
 apply if the head of the  department  or  agency  OR  CORPORATION  UNDER
 SUBPARAGRAPH ONE OF SUCH PARAGRAPH (A) constructing the public works, in
 his  or her sole discretion, determines that the provisions would not be
 in the public interest, would result  in  unreasonable  costs,  or  that
 obtaining  such  steel  or  iron in the United States would increase the
 cost of the contract by an unreasonable amount, or such iron  or  steel,
 including without limitation structural iron and structural steel cannot
 be  produced  or  made in the United States in sufficient and reasonably
 available quantities and  of  satisfactory  quality.  The  head  of  the
 department  or  agency  constructing the public works shall include this
 determination in an advertisement  or  solicitation  of  a  request  for
 proposal,  invitation for bid, or solicitation of proposal, or any other
 method provided for by law or regulation for soliciting a response  from
 offerors intending to result in a contract pursuant to this subdivision.
 The  provisions of paragraph (a) of this subdivision shall not apply for
 equipment purchased by a covered renewable energy system  prior  to  the
 effective date of this [chapter] SECTION.
   (c) The head of the department or agency constructing the public works
 may,  at  his  or  her  sole discretion, provide for a solicitation of a
 request for proposal, invitation for bid, or solicitation  of  proposal,
 or  any  other method provided for by law or regulation for soliciting a
 response from offerors intending to result in  a  contract  pursuant  to
 this  paragraph  involving a competitive process in which the evaluation
 of competing bids gives  significant  consideration  in  the  evaluation
 process  to  the  procurement  of equipment and supplies from businesses
 located in New York state.
   5. Whenever changes are proposed to  any  public  procurement  process
 involving  the program described in subdivision two of this section, the
 commission shall make  simultaneous  recommendations  to  the  temporary
 president of the senate and speaker of the assembly, regarding necessary
 changes  to  this  section, if any, in meeting the goals outlined in the
 legislative findings and intent of [the chapter by  which  this  section
 was  enacted]  PART  AA OF CHAPTER FIFTY-SIX OF THE LAWS OF TWO THOUSAND
 TWENTY-ONE.
   § 4. Subdivision 1 of section 224-d of the labor  law,  as  separately
 amended  by chapters 372 and 375 of the laws of 2022, is amended to read
 as follows:
   1. For purposes of this section, a "covered renewable  energy  system"
 means  (a) a renewable energy system, as such term is defined in section
 sixty-six-p of the public service law, with a capacity of  one  or  more
 megawatts  alternating  current  and  which  involves the procurement of
 A. 7850                             5
 
 renewable energy credits by a public entity, or a third party acting  on
 behalf and for the benefit of a public entity; or (b) any "thermal ener-
 gy  network" as defined by subdivision twenty-nine of section two of the
 public  service  law;  OR  (C) ANY "GENERATION FACILITY" AS DESCRIBED IN
 SECTION SIXTY-SIX-U OF THE PUBLIC SERVICE LAW.
   § 5. No later than sixty days after the effective date  of  this  act,
 the  public service commission shall commence a proceeding necessary and
 appropriate to implement the provisions of section 66-u  of  the  public
 service law.
   § 6. This act shall take effect immediately.