S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7879
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               July 12, 2023
                                ___________
 
 Introduced  by  M.  of  A.  CUNNINGHAM  -- read once and referred to the
   Committee 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.
                                                            LBD11873-01-3
 A. 7879                             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-w to
 read as follows:
   §  66-W.  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. The public service law is amended by adding a new section 66-x to
 read as follows:
   §  66-X.  LABOR  AGREEMENTS  AND  LABOR  PEACE  AGREEMENTS. 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 ALTERNATING CURRENT AND WHICH
 INVOLVES THE PROCUREMENT OF RENEWABLE ENERGY CREDITS BY A PUBLIC ENTITY,
 OR A THIRD PARTY ACTING ON BEHALF OF AND FOR THE  BENEFIT  OF  A  PUBLIC
 ENTITY.  "COVERED RENEWABLE ENERGY SYSTEM" SHALL ALSO INCLUDE ANY GENER-
 ATION  FACILITY AUTHORIZED PURSUANT TO SECTION SIXTY-SIX-W OF THIS ARTI-
 CLE;
   (B) "LABOR PEACE AGREEMENT" MEANS AN AGREEMENT BETWEEN AN  ENTITY  AND
 LABOR  ORGANIZATION THAT, AT A MINIMUM, PROTECTS THE STATE'S PROPRIETARY
 INTERESTS BY PROHIBITING LABOR ORGANIZATIONS AND MEMBERS  FROM  ENGAGING
 A. 7879                             3

 IN PICKETING, WORK STOPPAGES, BOYCOTTS, AND ANY OTHER ECONOMIC INTERFER-
 ENCE WITH THE RELEVANT RENEWABLE ENERGY SYSTEM;
   (C)  "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-FOR-PROFIT CORPORATION LAW, A MUNICI-
 PAL  CORPORATION  AS  DEFINED  IN  SECTION ONE HUNDRED NINETEEN-N OF THE
 GENERAL MUNICIPAL LAW, AN INDUSTRIAL DEVELOPMENT AGENCY FORMED  PURSUANT
 TO  ARTICLE EIGHTEEN-A OF THE GENERAL MUNICIPAL LAW OR INDUSTRIAL DEVEL-
 OPMENT 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; AND
   (D) "RENEWABLE ENERGY CREDITS AGREEMENT" SHALL MEAN ANY PUBLIC  ENTITY
 CONTRACT  THAT  PROVIDES PRODUCTION-BASED PAYMENTS TO A RENEWABLE ENERGY
 PROJECT AS DEFINED IN THIS SECTION.
   2. THE COMMISSION SHALL REQUIRE THAT THE OWNER OF A COVERED  RENEWABLE
 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.
   3. (A)(I)  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  SHALL 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 INCORPO-
 RATED INTO A PUBLIC WORK.
   (II)  ANY  CORPORATION  IN  EACH  CONTRACT  FOR  CONSTRUCTION,  RECON-
 STRUCTION,  ALTERATION,  REPAIR, IMPROVEMENT OR MAINTENANCE OF A COVERED
 RENEWABLE ENERGY SYSTEM, OR A THIRD PARTY ACTING ON BEHALF AND  FOR  THE
 BENEFIT  OF  THE CORPORATION, THE "PUBLIC WORK" FOR THE PURPOSES OF THIS
 A. 7879                             4
 
 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  MANU-
 FACTURING MUST TAKE PLACE IN THE UNITED STATES, FROM THE INITIAL MELTING
 STAGE  THROUGH  THE  APPLICATION OF COATINGS, EXCEPT METALLURGICAL PROC-
 ESSES INVOLVING THE  REFINEMENT  OF  STEEL  ADDITIVES.  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 (I) OF PARAGRAPH (A) OF THIS SUBDIVISION  CONSTRUCTING  THE
 PUBLIC  WORKS,  IN  HIS  OR  HER  SOLE  DISCRETION,  DETERMINES THAT THE
 PROVISIONS WOULD NOT BE IN THE PUBLIC INTEREST, WOULD RESULT  IN  UNREA-
 SONABLE 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 QUAL-
 ITY. 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 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.
   4.  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 OF THE LAWS OF TWO THOU-
 SAND TWENTY-THREE WHICH ADDED THIS SECTION.
   § 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
 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
 A. 7879                             5
 
 public service law; OR (C) ANY GENERATION FACILITY  AUTHORIZED  PURSUANT
 TO SECTION SIXTY-SIX-W 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-w of the public
 service law.
   § 6. This act shall take effect immediately.