S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4592
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 17, 2023
                                ___________
 
 Introduced  by  M. of A. FAHY -- read once and referred to the Committee
   on Corporations, Authorities and Commissions
 
 AN ACT to amend the public service law  and  the  transportation  corpo-
   rations  law,  in  relation  to aligning utility regulation with state
   climate justice and emission reduction targets; to repeal section 66-b
   of the public service law relating to continuation of gas service; and
   to repeal section 66-g of the public service law relating to the  sale
   of indigenous natural gas for generation of electricity
 
   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 "NY Home Energy Affordable Transition Act".
   § 2. Legislative findings. The legislature finds and declares that:
   1.  The  Climate Leadership and Community Protection Act (the "CLCPA")
 created legal mandates for dramatic greenhouse gas  emission  reductions
 from all sectors of New York's economy. The CLCPA also emphasizes equity
 in addressing climate change by requiring all state agencies and author-
 ities to prioritize reductions of greenhouse gas emissions and co-pollu-
 tants  in  disadvantaged communities and by mandating that certain state
 investments deliver benefits to these communities.
   2. Buildings are New York's largest source  of  greenhouse  gas  emis-
 sions,  accounting  for  approximately  one-third  of the greenhouse gas
 emissions in our state. New York state's  buildings  also  produce  more
 local  air  pollution  than any other state in the country, resulting in
 negative health outcomes such as increased rates of asthma, particularly
 among children, and heart disease. Therefore,  reducing  greenhouse  gas
 emissions  and  toxic  air  pollution emitted from New York's buildings,
 especially in disadvantaged communities, is necessary to meet the  CLCPA
 mandates.
   3. To meet the state's bold climate and equity mandates, New York will
 need  to  update  how  it  regulates  gas utility service. Doing so will

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02688-02-3
              

 A. 4592                             2
 
 enable strategic planning and investments in neighborhood-scale building
 decarbonization and help bring the  statewide  gas  distribution  system
 into  alignment  with  the  two  thousand  thirty and two thousand fifty
 greenhouse  gas  emission  reduction mandates in article seventy-five of
 the environmental conservation law  through  an  orderly  and  equitable
 process, coordinated with appropriate investments in the electric system
 to  ensure all New Yorkers have non-discriminatory, affordable access to
 the energy needed for heating, cooling, and powering  the  buildings  in
 which they live and work.
   4.  The  New  York  public  service  law not only contains barriers to
 neighborhood-scale building decarbonization solutions  such  as  thermal
 energy  networks,  but  also  works  at  cross purposes with the state's
 climate and  affordability  goals,  by  requiring  and  subsidizing  the
 continued expansion of natural gas infrastructure.
   a.  The gas utility obligation to serve codified in the public service
 law is a  major  obstacle  to  utilities  developing  neighborhood-scale
 building decarbonization projects that would facilitate bringing the gas
 system  into  alignment  with  the  two thousand thirty and two thousand
 fifty greenhouse gas emission reduction mandates in article seventy-five
 of the environmental conservation law in  a  manner  that  can  mitigate
 costs  for  all  utility customers, reduces greenhouse gas emissions and
 co-pollutants impacting local air quality, and provides a transition for
 impacted workers.
   b. Statutorily mandated utility system  extension  allowances  require
 existing  ratepayers  to  subsidize  gas  infrastructure hookups for new
 customers. According to a recent joint filing with  the  Public  Service
 Commission  by  the  New York state gas utilities, these required allow-
 ances cost gas utilities hundreds  of  millions  of  dollars  per  year.
 These costs are passed directly to existing gas customers.
   c.  Gas  utilities in New York are on track to collectively spend $150
 billion to replace thousands of miles of leak prone pipe in  the  coming
 years.  These  investments pose a risk of becoming stranded assets, with
 $77 billion of the total cost coming due after 2050, but can be  avoided
 in many cases by strategically investing in neighborhood-scale decarbon-
 ization projects.
   5.  New  Yorkers  are suffering from dramatic fossil fuel price spikes
 driven by the increasingly integrated global commodity  market,  subject
 to  the  whims  of  foreign dictators such as Russia's Vladimir Putin or
 Saudi Arabia's Prince Mohammed  bin  Salman.  Fossil  fuel  prices  have
 spiked  to historic high levels, making both electricity and gas utility
 service unaffordable  for  many  New  Yorkers.  Decarbonizing  buildings
 through  the strategic development of neighborhood-scale building decar-
 bonization projects, along  with  investing  in  energy  efficiency  and
 renewable  electricity,  will  save  New  Yorkers  money  now and in the
 future, protect against price volatility, and promote true energy  inde-
 pendence for New York state.
   6. Fossil fuel price spikes are exacerbating the affordability impacts
 of  the  COVID-19  Pandemic.  Over  a million households in New York now
 struggle to pay their utility bills. The Public Service  Commission  has
 declared,  but  not  yet  achieved, a goal that customers should not pay
 more than 6% of their income for utility energy services, a number based
 on a nationally accepted standard.
   7. Thus, it is the intent of the legislature  to  enact  the  NY  Home
 Energy Affordable Transition Act for the following purposes:
   a.  to  ensure  that  the  public service law regarding regulation and
 oversight of gas utilities will provide for  the  timely  and  strategic
 A. 4592                             3
 
 decarbonization  and  right-sizing  of  the gas distribution system in a
 just and affordable manner as required to meet the climate  justice  and
 emission  reduction mandates of the CLCPA, appropriately balancing rate-
 payers'  needs  and  interests with the maintenance of financially sound
 utilities, prioritizing low-to-moderate income customers  and  disadvan-
 taged communities, and encouraging neighborhood-scale transitions;
   b. to provide the Public Service Commission with the statutory author-
 ity  and  direction  to  align utility regulations and planning with the
 CLCPA climate justice and emission reduction mandates and to require the
 Public Service Commission to take a proactive role in the  timely  iden-
 tification  and  amendment of such regulations or rulings as may pose an
 impediment to achieving CLCPA mandates, and to identify  any  laws  that
 may pose an impediment;
   c.  to  end  statutorily mandated, ratepayer-subsidized incentives for
 the expansion of fossil fuel infrastructure while maintaining the  equi-
 table  provision  of  electric  service  for efficient heating, cooling,
 cooking, hot water, and other uses;
   d. to provide affordable access to electricity for heating and cooling
 and to protect  low-income  and  moderate-income  customers  from  undue
 burdens as they decarbonize their buildings; and
   e.  to  clarify that municipal building codes regulating on-site emis-
 sions are not preempted under New York state law.
   8. This legislation does not establish a ban on the use of gas. It  is
 neither  the  intent  nor  would it be the effect of this legislation to
 require the immediate transition of any existing gas customer to  alter-
 native heating and cooling services.
   §  3. Subdivision 1 of section 4 of the public service law, as amended
 by chapter 594 of the laws of 2021, is amended to read as follows:
   1. There shall be in the department of public service a public service
 commission, which shall possess the powers and duties hereinafter speci-
 fied, and also all powers necessary or proper to enable it to carry  out
 the  purposes  of  this chapter AND TO ENABLE ACHIEVEMENT OF THE CLIMATE
 JUSTICE AND EMISSION REDUCTION MANDATES IN ARTICLE SEVENTY-FIVE  OF  THE
 ENVIRONMENTAL  CONSERVATION LAW, AND SUCH SUCCESSORS IN LAW AND FUNCTION
 AS MAY ARISE FROM TIME TO TIME.  The commission shall  consist  of  five
 members,  to  be  appointed  by the governor, by and with the advice and
 consent of the senate. A commissioner shall be designated as  [chairman]
 CHAIRPERSON  of the commission by the governor to serve in such capacity
 at the pleasure of the governor or until his OR HER term as commissioner
 expires whichever first occurs. At least  one  commissioner  shall  have
 experience  in utility consumer advocacy. No more than three commission-
 ers may be members of the  same  political  party  unless,  pursuant  to
 action  taken  under  subdivision  two  of  this  section, the number of
 commissioners shall exceed five, and in such event  no  more  than  four
 commissioners may be members of the same political party.
   §  4.  Subdivisions  1  and  2 of section 5 of the public service law,
 subdivision 1 as amended and subdivision 2 as added by  chapter  155  of
 the  laws  of 1970, paragraph i of subdivision 1 as added by chapter 375
 of the laws of 2022, are amended to read as follows:
   1. The jurisdiction, supervision, powers  and  duties  of  the  public
 service commission shall extend under this chapter:
   [b.]  A.  To  the  manufacture,  conveying,  transportation,  sale  or
 distribution of gas (natural or manufactured or  mixture  of  both)  and
 electricity  for  light,  heat,  COOLING, or power, to gas plants and to
 electric plants and to the persons or corporations  owning,  leasing  or
 operating the same.
 A. 4592                             4
 
   [c.]  B. To the manufacture, holding, distribution, transmission, sale
 or furnishing of steam for heat or power, to steam  plants  and  to  the
 persons or corporations owning, leasing or operating the same.
   [d.] C. To every telephone line which lies wholly within the state and
 that  part  within  the  state of New York of every telephone line which
 lies partly within and partly without the state and to  the  persons  or
 corporations owning, leasing or operating any such telephone line.
   [e.] D. To every telegraph line which lies wholly within the state and
 that  part  within  the  state of New York of every telegraph line which
 lies partly within and partly without the state and to  the  persons  or
 corporations owning, leasing or operating any such telegraph line.
   [f.]  E.  To  the  furnishing  or  distribution of water for domestic,
 commercial or public uses and to water systems and  to  the  persons  or
 corporations owning, leasing or operating the same.
   [g.]  F.  To  every  stock yard within the state and to the stock yard
 company owning, leasing or operating the same, to the same extent and in
 respect to the same objects and purposes as such  jurisdiction  extends,
 under this chapter, to depots, freight houses and shipping stations of a
 common  carrier, including the duty of such stock yard company to submit
 reports and be subjected to investigation as if it were a common  carri-
 er, and the powers and duties of such commission to fix charges and make
 and enforce orders relating to adequate service by such company.
   [h.]  G.  A  corporation or person owning or holding a majority of the
 stock of a common carrier, gas  corporation  or  electrical  corporation
 subject  to  the  jurisdiction of the public service commission shall be
 subject to the supervision of the public service commission  in  respect
 of  the  relations between such common carrier, gas corporation or elec-
 trical corporation and such owners or holders of a majority of the stock
 thereof in so far as such relations arise from  or  by  reason  of  such
 ownership  or  holding of stock thereof or the receipt or holding of any
 money or property thereof or from or by reason of any  contract  between
 them;  and  in respect of such relations shall in like manner and to the
 same extent as such common carrier, gas corporation or electrical corpo-
 ration be subject to examination of accounts, records and memoranda, and
 shall furnish such reports and information as the public service commis-
 sion shall from time to time direct and require, and shall be subject to
 like penalties for default therein.
   [i.] H. To thermal  energy  provided  by  gas  corporations,  electric
 corporations, or combination gas and electric corporations.
   2. The commission shall encourage all persons and corporations subject
 to  its  jurisdiction  to  formulate  and carry out long-range programs,
 individually or cooperatively,  for  the  performance  of  their  public
 service  responsibilities,  INCLUDING  THE  ACHIEVEMENT  OF  THE CLIMATE
 JUSTICE AND EMISSION REDUCTION MANDATES IN ARTICLE SEVENTY-FIVE  OF  THE
 ENVIRONMENTAL  CONSERVATION  LAW, with economy, efficiency, and care for
 the public safety, the preservation  of  environmental  values  and  the
 conservation of natural resources.
   §  5.  Section 30 of the public service law, as amended by chapter 686
 of the laws of 2002, is amended to read as follows:
   § 30. Residential gas, electric and  steam  service  policy.  1.  This
 article  shall  apply  to  the  provision of all or any part of the gas,
 electric or steam service provided to any residential  customer  by  any
 gas,  electric  or steam and municipalities corporation or municipality.
 It is hereby declared to be the policy of this state that the  continued
 provision of [all or any part of such gas,] electric [and steam service]
 SERVICES  to  all  residential customers without unreasonable qualifica-
 A. 4592                             5
 
 tions or lengthy delays is necessary for the preservation of the  health
 and  general  welfare, IS CONSISTENT WITH THE ACHIEVEMENT OF THE STATE'S
 CLIMATE JUSTICE AND EMISSION REDUCTION MANDATES, and is  in  the  public
 interest.    IT IS FURTHER THE POLICY OF THIS STATE THAT GAS SERVICE FOR
 EXISTING RESIDENTIAL CUSTOMERS MUST BE PROVIDED IN A MANNER THAT IS SAFE
 AND ADEQUATE, NOT UNJUSTLY DISCRIMINATORY OR UNDULY PREFERENTIAL, AND IN
 ALL RESPECTS JUST AND REASONABLE, WHILE PROVIDING FOR AN ORDERLY  RIGHT-
 SIZING  OF  THE  GAS DISTRIBUTION SYSTEM TO ACHIEVE CONSISTENCY WITH THE
 CLIMATE JUSTICE AND EMISSION REDUCTION MANDATES IN ARTICLE  SEVENTY-FIVE
 OF  THE  ENVIRONMENTAL  CONSERVATION  LAW,  PRIORITIZING LOW-TO-MODERATE
 INCOME CUSTOMERS AND DISADVANTAGED COMMUNITIES  AS  DEFINED  IN  ARTICLE
 SEVENTY-FIVE  OF  THE  ENVIRONMENTAL  CONSERVATION  LAW, AND ENCOURAGING
 NEIGHBORHOOD-SCALE TRANSITIONS.
   2. THE COMMISSION SHALL REGULATE FOR THE CONTINUED  PROVISION  OF  GAS
 SERVICE  TO  ALL  EXISTING  RESIDENTIAL CUSTOMERS WHO CHOOSE TO CONTINUE
 SERVICE, UNLESS THE DISCONTINUANCE OF SERVICE IS PART OF  A  PROCESS  OF
 ORDERLY  RIGHT-SIZING OF THE GAS DISTRIBUTION SYSTEM TO ACHIEVE CONSIST-
 ENCY WITH THE CLIMATE JUSTICE AND EMISSION REDUCTION MANDATES IN ARTICLE
 SEVENTY-FIVE OF THE ENVIRONMENTAL CONSERVATION  LAW.  AS  PART  OF  SUCH
 PROCESS,  THE  COMMISSION SHALL TAKE ANY SUCH ACTION, AFTER NOTICE AND A
 HEARING, AS IS NECESSARY TO FACILITATE THE  ACHIEVEMENT  OF  CONSISTENCY
 WITH  THE  CLIMATE  JUSTICE  AND  EMISSION REDUCTION MANDATES IN ARTICLE
 SEVENTY-FIVE OF THE ENVIRONMENTAL CONSERVATION LAW, BUT IN DOING  SO  IT
 SHALL ACTIVELY ENCOURAGE A TRANSITION AWAY FROM FUELS WITH HIGH LIFE-CY-
 CLE GREENHOUSE GAS EMISSIONS AND ON-SITE CO-POLLUTANT EMISSIONS, ENCOUR-
 AGE  NEIGHBORHOOD-SCALE  TRANSITIONS,  AND  ENSURE  THAT ALL RESIDENTIAL
 CUSTOMERS HAVE ACCESS TO ELECTRICITY FOR HEATING  AND  COOLING  SERVICES
 WITHOUT  UNREASONABLE  QUALIFICATIONS,  UNREASONABLE  COSTS,  OR LENGTHY
 DELAYS, WITH A GOAL THAT LOW-TO-MODERATE INCOME  CUSTOMERS,  DEFINED  AS
 HOUSEHOLDS  WITH  ANNUAL  INCOMES AT OR BELOW EIGHTY PERCENT OF THE AREA
 MEDIAN INCOME OF THE COUNTY OR METRO AREA WHERE THEY  RESIDE,  INCLUDING
 THOSE WHO ARE ALREADY ELIGIBLE FOR THE COMMISSION'S ENERGY AFFORDABILITY
 PROGRAM,  ARE  ADEQUATELY  PROTECTED FROM BEARING ENERGY BURDENS GREATER
 THAN SIX PERCENT OF THEIR INCOME, INCLUDING ANY UNDUE BURDENS IMPOSED BY
 THE COST TO PURCHASE AND OPERATE ELECTRIC EQUIPMENT NEEDED TO FACILITATE
 THE ACHIEVEMENT OF THE CLIMATE JUSTICE AND EMISSION  REDUCTION  MANDATES
 IN ARTICLE SEVENTY-FIVE OF THE ENVIRONMENTAL CONSERVATION LAW.
   § 6. Subdivisions  1, 3 and 4 of section 31 of the public service law,
 as added by chapter 713 of the laws of 1981,  are  amended  to  read  as
 follows:
   1.  Every  gas corporation, electric corporation or municipality shall
 provide residential service upon the  oral  or  written  request  of  an
 applicant,  provided  that  ANY  RESIDENTIAL  GAS  SERVICE SHALL ONLY BE
 PROVIDED IN ACCORDANCE WITH  SECTION  THIRTY  OF  THIS  ARTICLE  AND  IS
 SUBJECT  TO  ANY  ORDERS  OR  REGULATIONS  LIMITING OR DISCONTINUING GAS
 SERVICE THAT  ARE  IMPLEMENTED  BY  THE  COMMISSION  TO  FACILITATE  THE
 ACHIEVEMENT  OF  CONSISTENCY  WITH  THE  CLIMATE  JUSTICE  AND  EMISSION
 REDUCTION MANDATES IN ARTICLE SEVENTY-FIVE OF THE ENVIRONMENTAL  CONSER-
 VATION  LAW,  AND  PROVIDED FURTHER THAT the commission may require that
 requests for service be in  writing  under  circumstances  as  it  deems
 necessary  and  proper  as set forth by regulation, and provided further
 that the applicant:
   (a) makes full payment for residential utility service provided  to  a
 prior account in [his] THE APPLICANT'S name; or
   (b)  agrees  to  make  payments  under  a deferred payment plan of any
 amounts due for service to a prior account in [his] THE APPLICANT'S name
 A. 4592                             6
 
 and makes a down payment based on criteria  to  be  established  by  the
 commission.  No such down payment shall exceed one-half of any money due
 from an applicant for residential utility service, or three months aver-
 age billing, whichever is less; or
   (c)  is a recipient of public assistance, supplemental security income
 or additional state payments pursuant to the social services law, or  is
 an  applicant  for  such assistance, income or payments, and the utility
 corporation or the municipality receives payment from, or is notified of
 the applicant's eligibility for utility payments by the social  services
 official  of  the  social services district in which such person resides
 for amounts due for service to a prior account in the applicant's  name,
 together  with  guarantee of future payments to the extent authorized by
 the social services law; AND
   (D) RECEIVES CLEAR, TIMELY INFORMATION FROM THE GAS CORPORATION, ELEC-
 TRIC CORPORATION,  MUNICIPALITY, OR RETAIL ENERGY SERVICE COMPANY, WRIT-
 TEN IN PLAIN LANGUAGE, AVAILABLE IN THE TOP TWELVE MOST COMMON NON-ENGL-
 ISH LANGUAGES SPOKEN BY LIMITED  ENGLISH  PROFICIENT  NEW  YORKERS,  AND
 APPROVED  BY  THE  COMMISSION AFTER STAKEHOLDER INPUT, ON INCENTIVES AND
 OPPORTUNITIES FOR  INSTALLING,  ENERGY-EFFICIENT  ELECTRIC  HEATING  AND
 COOLING   TECHNOLOGIES,   WEATHERIZATION,  DEMAND-SIDE  MANAGEMENT,  AND
 DISTRIBUTED ENERGY RESOURCE PROGRAMS.
   (E) NOTHING IN THIS SUBDIVISION SHALL BE CONSTRUED TO PROHIBIT  EXIST-
 ING GAS CUSTOMERS, IN ACCORDANCE WITH SECTION THIRTY OF THIS ARTICLE AND
 SUBJECT  TO  ANY  OTHER  REGULATIONS IMPLEMENTED BY THE COMMISSION, FROM
 RECONNECTING TO THE GAS DISTRIBUTION SYSTEM FOLLOWING A GAS INTERRUPTION
 DUE TO EMERGENCY REPAIRS OR REMEDIATION OF LEAKING EQUIPMENT.
   3. Subject to the requirements of subdivisions four and five  of  this
 section, AND IN ACCORDANCE WITH SECTION THIRTY OF THIS ARTICLE, whenever
 a  residential  customer  moves  to  a  new residence within the service
 territory of the same utility  corporation  or  municipality,  [he]  THE
 APPLICANT  shall be eligible to receive service at the new residence and
 such service shall be considered  a  continuation  of  service  [in  all
 respects]  AS OPERATIONALLY FEASIBLE BASED ON INFRASTRUCTURE AND COMMOD-
 ITY AVAILABILITY AT THE SITE OF THE NEW  RESIDENCE,  with  any  deferred
 payment agreement honored, and with all rights of such customer and such
 utility corporation provided by this article unimpaired.
   4.  In  the case of any application for service to a building which is
 not supplied with electricity or gas, a utility corporation  or  munici-
 pality  shall  be obligated to provide ELECTRIC service to such a build-
 ing, AND TO PROVIDE GAS SERVICE FOR SUCH A BUILDING IN  ACCORDANCE  WITH
 COMMISSION REGULATION, provided however, that the commission may require
 applicants  for  service  to buildings [located in excess of one hundred
 feet from gas or electric transmission lines] to pay or agree in writing
 to pay material and  installation  costs  relating  to  the  applicant's
 proportion of the pipe, conduit, duct or wire, or other facilities to be
 installed.
   §  7. Section 12 of the transportation corporations law, as separately
 amended by chapters 713 and 895 of the laws of 1981, is amended to  read
 as follows:
   §  12.  Gas and electricity must be supplied on application IN ACCORD-
 ANCE WITH COMMISSION RULES AND REGULATIONS. Except in  the  case  of  an
 application  for  residential utility service pursuant to article two of
 the public service law, upon written application of the owner  or  occu-
 pant  of  any  building  [within  one  hundred feet of any main of a gas
 corporation or gas and electric corporation, or a line  of  an  electric
 corporation  or gas and electric corporation, appropriate to the service
 A. 4592                             7

 requested,] and payment by [him] THE APPLICANT of  all  money  due  from
 [him]  THE  APPLICANT to the corporation, it shall supply [gas or] elec-
 tricity as may be required for  [lighting]  such  building  AND  IT  MAY
 PROVIDE  GAS FOR SUCH BUILDING IN ACCORDANCE WITH COMMISSION REGULATION,
 notwithstanding there be rent or compensation  in  arrears  for  gas  or
 electricity supplied, or for meter, wire, pipe or fittings furnished, to
 a  former  occupant  thereof,  unless  such owner or occupant shall have
 undertaken or agreed with the former occupant to  pay  or  to  exonerate
 [him] THEM from the payment of such arrears, and shall refuse or neglect
 to  pay  the  same; and if for the space of ten days after such applica-
 tion, and the deposit of a  reasonable  sum  as  provided  in  the  next
 section,  if required, the corporation shall refuse or neglect to supply
 gas or [electric light] ELECTRICITY as required, such corporation  shall
 forfeit and pay to the applicant the sum of ten dollars, and the further
 sum  of  five dollars for every day thereafter during which such refusal
 or neglect shall continue; provided that no such  corporation  shall  be
 required  to lay service pipes or wires for the purpose of supplying gas
 or electric light to any applicant where the ground in which  such  pipe
 or wire is required to be laid shall be frozen, or shall otherwise pres-
 ent  serious  obstacles to laying the same; nor unless the applicant, if
 required, shall deposit in advance with the corporation a sum  of  money
 sufficient  to  pay the cost of [his proportion] THE APPLICANT'S PORTION
 of the pipe, conduit, duct or wire required to  be  installed,  and  the
 expense of the installation of such portion.
   § 8. Subdivision 2 of section 66 of the public service law, as amended
 by  chapter  877  of  the laws of 1953, is amended and a new subdivision
 12-e is added to read as follows:
   2. Investigate and ascertain, from time to time, the  quality  of  gas
 supplied  by persons, corporations and municipalities; examine or inves-
 tigate the methods employed by such persons,  corporations  and  munici-
 palities in manufacturing, distributing and supplying gas or electricity
 for  light,  heat,  COOLING,  or power and in transmitting the same, and
 have power to order such reasonable improvements as  will  best  promote
 the  public interest, preserve the public health and protect those using
 such gas or electricity  and  those  employed  in  the  manufacture  and
 distribution  thereof,  and  have power to order reasonable improvements
 and extensions of the works, wires, poles, lines,  conduits,  ducts  and
 other  reasonable  devices,  apparatus and property of gas corporations,
 electric corporations and municipalities; and have power after an inves-
 tigation and a hearing to order any corporation having  authority  under
 any  general  or  special  law or under any charter or franchise, to lay
 down, erect or maintain wires, pipes, conduits, ducts or other  fixtures
 in, over or under the streets, highways and public places of any munici-
 pality  for  the  purpose  of supplying, selling or distributing natural
 gas, to augment its supply of natural gas, whenever the commission deems
 necessary and whenever artificial gas can  be  reasonably  obtained,  by
 acquiring  by  purchase, manufacture or otherwise a supply thereof to be
 mixed with such natural gas, in order to render adequate service to  the
 customers  of such corporation or to maintain a proper and uniform pres-
 sure; and have power after an investigation and a hearing to  order  any
 corporation  having  authority under any general or special law or under
 any charter or franchise, to lay down, erect or maintain  wires,  pipes,
 conduits,  ducts  or other fixtures in, over or under the streets, high-
 ways and public places of any municipality for the purpose of supplying,
 selling or distributing artificial gas, to augment its supply of artifi-
 cial gas, whenever the commission deems necessary and  whenever  natural
 A. 4592                             8

 gas  can be reasonably obtained, by acquiring by purchase or otherwise a
 supply thereof to be mixed with such artificial gas, in order to  render
 adequate  service  to the customers of such corporation or to maintain a
 proper  and  uniform pressure; and to fix such rate for the supplying of
 mixed gas as shall secure to such corporation a  fair  return;  and  may
 order  the  curtailment  or discontinuance of the use of natural gas for
 manufacturing or industrial purposes, for  periods  aggregating  not  to
 exceed  four  months  in  any calendar year, if it is established to the
 satisfaction of the commission that the supply of  natural  gas  is  not
 adequate  to meet the reasonable demands of domestic consumption and may
 [prohibit the use of natural gas  in  wasteful  devices  and  practices]
 ORDER  THE  CURTAILMENT OR DISCONTINUANCE OF THE USE OF THE DISTRIBUTION
 SYSTEM, WHERE THE COMMISSION HAS DETERMINED  THAT  SUCH  CURTAILMENT  OR
 DISCONTINUANCE  IS REASONABLY REQUIRED TO IMPLEMENT STATE ENERGY POLICY,
 PROVIDED THAT SUCH CURTAILMENT OR  DISCONTINUANCE  SHALL  BE  CONSISTENT
 WITH A PLAN FOR THE PHASE-OUT OF THE USE OF A GAS DISTRIBUTION SYSTEM TO
 ACHIEVE  CONSISTENCY  WITH  THE  CLIMATE  JUSTICE AND EMISSION REDUCTION
 MANDATES IN ARTICLE SEVENTY-FIVE OF THE ENVIRONMENTAL CONSERVATION  LAW,
 INCLUDING THE OPPORTUNITY FOR THE FULL RECOVERY OF THE UTILITY'S INVEST-
 MENT  IN  SUCH  SYSTEM,  ENCOURAGING  NEIGHBORHOOD-SCALE TRANSITIONS FOR
 CLEAN HEATING AND COOLING,  PRIORITIZING  DISADVANTAGED  COMMUNITIES  AS
 DEFINED  IN  ARTICLE SEVENTY-FIVE OF THE ENVIRONMENTAL CONSERVATION LAW,
 AND  ACCOMPANIED  BY  COORDINATION  ASSISTANCE  AND,  WHERE   REASONABLY
 REQUIRED,  FINANCIAL  ASSISTANCE  IN  THE IDENTIFICATION AND ADOPTION OF
 ALTERNATIVES, AND MAY PROHIBIT  THE  USE  OF  NATURAL  GAS  IN  WASTEFUL
 DEVICES AND PRACTICES, AS DEFINED BY THE COMMISSION, AND REQUIRE CONSER-
 VATION AND EFFICIENCY IN GAS USAGE.
   12-E.  THE  COMMISSION  SHALL  REVIEW THE CAPITAL CONSTRUCTION PLAN OF
 EACH GAS CORPORATION AND ESTABLISH A PROCESS TO EXAMINE FEASIBLE  ALTER-
 NATIVES  TO  SUCH  CONSTRUCTION IN ORDER TO ACHIEVE CONSISTENCY WITH THE
 CLIMATE JUSTICE AND EMISSION REDUCTION MANDATES IN ARTICLE  SEVENTY-FIVE
 OF  THE  ENVIRONMENTAL  CONSERVATION LAW, ENCOURAGING NEIGHBORHOOD-SCALE
 TRANSITIONS AWAY FROM FUELS WITH HIGH LIFE-CYCLE  GREENHOUSE  GAS  EMIS-
 SIONS  AND  ON-SITE CO-POLLUTANT EMISSIONS, PRIORITIZING LOW-TO-MODERATE
 INCOME CUSTOMERS AND DISADVANTAGED COMMUNITIES  AS  DEFINED  IN  ARTICLE
 SEVENTY-FIVE  OF  THE ENVIRONMENTAL CONSERVATION LAW. SUCH PROCESS SHALL
 INCLUDE THRESHOLDS AND CRITERIA FOR THE TYPES  OF  PROJECTS  SUBJECT  TO
 SUCH  EXAMINATION.  THE  COMMISSION  SHALL REQUIRE PARTICIPATION IN SUCH
 PROCESS BY EACH ELECTRIC CORPORATION WITH A SERVICE AREA OVERLAPPING THE
 SERVICE AREA OF THE GAS CORPORATION; AND THE COMMISSION SHALL  HAVE  THE
 POWER  TO REQUIRE ANY SUCH ELECTRIC CORPORATION TO PARTICIPATE IN ALTER-
 NATIVES TO GAS CAPITAL CONSTRUCTION, INCLUDING PARTICIPATION IN  FINANC-
 ING.  ANY  COSTS  INCURRED  BY SUCH ELECTRIC CORPORATION FOR SUCH CORPO-
 RATION'S PARTICIPATION SHALL BE  SUBJECT  TO  AN  OPPORTUNITY  FOR  FULL
 RECOVERY, AS DETERMINED BY THE COMMISSION.
   §  9. Section 66-a of the public service law, as added by chapter 7 of
 the laws of 1948, subdivision 1 as amended and subdivision 3 as added by
 chapter 582 of the laws of 1975, subdivision 2 as amended by chapter 722
 of the laws of 1977, is amended to read as follows:
   § 66-a. Conservation of gas,  declaration  of  policy,  delegation  of
 power.    1.  It  is hereby declared to be the policy of this state that
 when there develops in any area a situation under  which  a  gas  corpo-
 ration supplying gas to such area is unable to meet the reasonable needs
 of  its  consumers  and  of  persons or corporations applying for new or
 additional gas service, the available supply of gas shall  be  allocated
 among  the  customers  of such gas corporation, in such manner as may be
 A. 4592                             9
 
 necessary to protect public health and safety and to avoid  undue  hard-
 ship,  PARTICULARLY  FOR  LOW-TO-MODERATE  INCOME RESIDENTIAL CUSTOMERS,
 ELECTRIC GENERATION NEEDED FOR ELECTRIC SYSTEM RELIABILITY, AND  CUSTOM-
 ERS  WITH  HARD-TO-ELECTRIFY INDUSTRIAL AND COMMERCIAL USES, pursuant to
 rules and regulations as may be adopted by the commission, and  that  to
 carry  out  this  declared policy the jurisdiction of the public service
 commission should be clarified.  IT IS FURTHER DECLARED TO BE THE POLICY
 OF THIS STATE THAT GAS SERVICE TO EXISTING CUSTOMERS MUST BE PROVIDED IN
 A MANNER THAT IS SAFE AND ADEQUATE, NOT UNJUSTLY DISCRIMINATORY OR UNDU-
 LY PREFERENTIAL, AND IN ALL RESPECTS JUST AND REASONABLE.
   2. Notwithstanding the provisions of any statute or any franchise held
 by a gas corporation, the commission shall have power, upon the  finding
 that CONTINUED GAS SERVICE IS NOT CONSISTENT WITH THE ACHIEVEMENT OF THE
 CLIMATE  JUSTICE AND EMISSION REDUCTION MANDATES IN ARTICLE SEVENTY-FIVE
 OF THE ENVIRONMENTAL CONSERVATION LAW, OR THAT there exists such a shor-
 tage of gas in any area in the state, that the gas corporation supplying
 such area is unable and will be unable to secure or  produce  sufficient
 gas  to  meet  the  reasonable  needs of its customers and of persons or
 corporations applying for new or additional gas service, to require such
 corporation to immediately discontinue the supplying  of  gas  to  addi-
 tional  customers  or of supplying additional service to present custom-
 ers, for such purpose or purposes as may be designated  by  the  commis-
 sion,  or  to  customers  using  gas  for  a  purpose  prohibited by the
 commission pursuant to this act, and that  upon  the  finding  that  the
 supply  of  gas  available  is  and  will  be insufficient to supply the
 demands of all consumers receiving service, to require such  gas  corpo-
 ration  to  curtail  or  discontinue  service  to  any or all classes of
 customers of such gas corporation.  In  imposing  such  a  direction  or
 requirement,  the  commission shall give consideration first to existing
 domestic uses and uses deemed to  be  necessary  by  the  commission  to
 protect  public health and safety and to avoid undue hardship [and shall
 be limited to the period of the emergency provided that the  gas  corpo-
 ration  affected  shall  make such restriction, curtailing or discontin-
 uance applicable to all customers or applicants for service  in  a  like
 class. If the commission determines that good cause exists for supplying
 service  to  additional customers or for supplying additional service to
 some existing customers, notwithstanding the curtailment  or  discontin-
 uance  of  service  to other existing customers, it shall, to the extent
 feasible, allocate gas with equal priority to new or additional domestic
 uses of gas and commercial or industrial  processes  which  require  gas
 because  there  is  no practical substitute for it in such proportion as
 the commission determines to be reasonable.  Provided that  the  commis-
 sion  shall be permitted, after public hearing, to authorize any natural
 gas produced from lands under the waters of Lake Erie  to  be  used  for
 process  or  feedstock  requirements].  The  commission is authorized to
 adopt such rules, regulations and orders as are necessary or appropriate
 to carry out these delegated powers.
   3. In carrying out the delegated powers provided for in this  section,
 the commission shall, to the extent practicable, determine and establish
 gas conservation measures or standards, INCLUDING ENERGY EFFICIENT ELEC-
 TRIFICATION  OF GAS END USES. The commission may require compliance with
 such measures or standards as a condition of receiving service.
   4. THE COMMISSION SHALL DETERMINE CONDITIONS UNDER WHICH NEW OR  ADDI-
 TIONAL  GAS  SERVICE  IS  WARRANTED NOTWITHSTANDING THE NEED TO CONSERVE
 RESOURCES FOR SERVICE TO EXISTING GAS  CUSTOMERS.    SUCH  DETERMINATION
 SHALL  BE  CONSISTENT  WITH  THE  ACHIEVEMENT OF THE CLIMATE JUSTICE AND
 A. 4592                            10
 
 EMISSION REDUCTION MANDATES IN ARTICLE SEVENTY-FIVE OF THE ENVIRONMENTAL
 CONSERVATION LAW, AND MAY TAKE INTO ACCOUNT FACTORS  INCLUDING  ECONOMIC
 DEVELOPMENT, IMPACTS ON NEW AND EXISTING CUSTOMERS INCLUDING LOW-TO-MOD-
 ERATE  INCOME  CUSTOMERS,  IMPACTS ON SYSTEM SAFETY AND ADEQUACY, EQUITY
 TOWARD EXISTING CUSTOMERS WITH LIMITED CONVERSION ALTERNATIVES, AND  THE
 FEASIBILITY  OF  NEIGHBORHOOD-SCALE  ALTERNATIVES TO USAGE OF FUELS WITH
 HIGH LIFE-CYCLE GREENHOUSE GAS EMISSIONS AND ON-SITE CO-POLLUTANT  EMIS-
 SIONS, INCLUDING THERMAL ENERGY NETWORKS.
   5.  THE  COMMISSION  SHALL  REQUIRE  GAS  AND/OR ELECTRIC UTILITIES TO
 PROVIDE COORDINATION ASSISTANCE AND FINANCIAL ASSISTANCE, IN SUCH  FORMS
 AS  THE  COMMISSION  DEEMS REASONABLY REQUIRED TO IMPLEMENT STATE ENERGY
 POLICY, TO IDENTIFY AND ADOPT ALTERNATIVES WHERE APPLICATIONS FOR NEW OR
 ADDITIONAL GAS SERVICE ARE DENIED AND ENCOURAGE NEIGHBORHOOD-SCALE TRAN-
 SITIONS.
   § 10. Section 66-b of the public service law is REPEALED.
   § 11. The public service law is amended by adding a new  section  66-u
 to read as follows:
   §  66-U.  EXPANSION  OF  GAS  DISTRIBUTION  INFRASTRUCTURE.  EXCEPT AS
 PROVIDED IN THIS SECTION, AND NOTWITHSTANDING  ANY  OTHER  PROVISION  OF
 THIS  CHAPTER, AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY-FOUR, NO
 GAS CORPORATION SHALL COMMENCE  CONSTRUCTION  OF  NEW  GAS  DISTRIBUTION
 INFRASTRUCTURE  THE RESULT  OF WHICH WOULD BE TO EXPAND THE AVAILABILITY
 OF SERVICE INTO GEOGRAPHIC AREAS WHERE GAS  SERVICE  WAS  NOT  AVAILABLE
 PRIOR TO THAT DATE AS DEFINED BY THE APPLICABLE UTILITY'S CERTIFICATE OF
 PUBLIC  CONVENIENCE  AND  NECESSITY APPROVED BY THE COMMISSION. NO  SUCH
 NEW GAS DISTRIBUTION INFRASTRUCTURE   SHALL BE PUT  INTO  SERVICE  AFTER
 DECEMBER  THIRTY-FIRST,  TWO  THOUSAND TWENTY-FIVE. THE COMMISSION   MAY
 AUTHORIZE  EXCEPTIONS ON A CASE-BY-CASE BASIS, PROVIDED THAT THE COMMIS-
 SION FINDS THAT THE  PROJECT  QUALIFYING  FOR  THE  EXCEPTION  SERVES  A
 COMPELLING  STATE  INTEREST,  ALTERNATIVES TO GAS SERVICE ARE EITHER NOT
 TECHNICALLY FEASIBLE OR PROHIBITIVELY EXPENSIVE, AND  THAT  THE  PROJECT
 WILL  BE  COMPLETED AND PUT INTO SERVICE NOT LATER THAN DECEMBER THIRTY-
 FIRST, TWO THOUSAND TWENTY-SEVEN. FOR THE PURPOSES OF THIS SECTION,  GAS
 DISTRIBUTION  INFRASTRUCTURE SHALL INCLUDE ALL REAL ESTATE, FIXTURES AND
 PERSONAL PROPERTY OPERATED,  OWNED,  USED  OR  TO  BE  USED  FOR  OR  IN
 CONNECTION WITH OR TO FACILITATE THE MANUFACTURE, CONVEYING, TRANSPORTA-
 TION,  DISTRIBUTION,  SALE OR FURNISHING OF GAS (NATURAL OR MANUFACTURED
 OR A MIXTURE OF BOTH) FOR LIGHT, HEAT OR POWER,  BUT  DOES  NOT  INCLUDE
 PROPERTY  USED SOLELY FOR OR IN CONNECTION WITH THE BUSINESS OF SELLING,
 DISTRIBUTING OR FURNISHING OF GAS IN ENCLOSED CONTAINERS.
   § 12. Section 66-g of the public service law is REPEALED.
   § 13. The public service law is amended by adding a new  section  77-a
 to read as follows:
   §  77-A. ALIGNING UTILITY REGULATION WITH CLIMATE JUSTICE AND EMISSION
 REDUCTION MANDATES. 1.  WITHIN THREE MONTHS OF  THE  EFFECTIVE  DATE  OF
 THIS  SECTION,  THE  COMMISSION SHALL INITIATE A PROCEEDING, OR MULTIPLE
 PROCEEDINGS, AS IT DEEMS APPROPRIATE, TO CONSIDER AND ACT ON THE MATTERS
 IDENTIFIED IN THIS SECTION IN ORDER TO BETTER ALIGN  ITS  REGULATION  OF
 UTILITY  SERVICES  WITH  THE  TIMELY ACHIEVEMENT OF CONSISTENCY WITH THE
 CLIMATE JUSTICE AND EMISSION REDUCTION  MANDATES IN ARTICLE SEVENTY-FIVE
 OF THE ENVIRONMENTAL CONSERVATION  LAW. IF THE COMMISSION IS     ALREADY
 ENGAGED  IN  A PROCEEDING ADDRESSING ONE OR MORE OF THE  MATTERS IDENTI-
 FIED IN THIS SECTION, IT SHALL NOT BE REQUIRED TO OPEN A NEW  PROCEEDING
 ON  THAT  MATTER.    FOLLOWING  COMPLETION  OF ALL PROCEEDINGS INITIATED
 PURSUANT TO THIS SECTION, THE COMMISSION SHALL INITIATE  REGULAR  SUBSE-
 QUENT   PROCEEDINGS,  AS  IT  DEEMS  NECESSARY, TO ENSURE  THE  ACHIEVE-
 A. 4592                            11
 
 MENT  OF  THE  GOALS   OUTLINED   IN THIS SECTION.   THE  PROCEEDING  OR
 PROCEEDINGS SHALL INCLUDE:
   (A) WITHIN ONE YEAR OF THE EFFECTIVE DATE OF THIS SECTION, A REVIEW OF
 THE  PUBLIC  SERVICE  LAW  AND  ITS CURRENT RULES AND POLICY GUIDANCE TO
 IDENTIFY ANY LAW, RULE, GUIDANCE, OR LACK THEREOF, THAT   MAY    INHIBIT
 TIMELY,    EQUITABLE   ACHIEVEMENT   OF   CONSISTENCY WITH THE   CLIMATE
 JUSTICE  AND EMISSION REDUCTION  MANDATES IN ARTICLE SEVENTY-FIVE OF THE
 ENVIRONMENTAL CONSERVATION LAW.  THE  COMMISSION  SHALL  REPORT  TO  THE
 LEGISLATURE  ITS  PROGRESS  AND FINDINGS, IDENTIFY SUBSEQUENT ACTIONS IT
 WILL  TAKE,  AND  MAKE  RECOMMENDATIONS  FOR ANY STATUTORY AMENDMENTS OR
 OTHER ACTIONS THAT MAY  BE NEEDED TO FACILITATE THE  TIMELY  ACHIEVEMENT
 OF SUCH  MANDATES.
   (B)  WITHIN ONE YEAR OF THE EFFECTIVE DATE OF THIS SECTION, A REVISION
 OF THE COMMISSION'S RULES AND REGULATIONS  FOR  DETERMINING  APPROPRIATE
 ALLOWANCES  FOR  THE  EXTENSION  OF GAS AND ELECTRIC UTILITY SERVICES TO
 ENSURE THAT UTILITY SERVICE IS PROVIDED IN A MANNER CONSISTENT WITH  THE
 ACHIEVEMENT  OF  THE  CLIMATE JUSTICE AND EMISSION REDUCTION MANDATES IN
 ARTICLE SEVENTY-FIVE OF THE ENVIRONMENTAL CONSERVATION  LAW.  IN  ESTAB-
 LISHING  RULES GOVERNING THE ALLOWANCE FOR THE EXTENSION OF GAS SERVICE,
 THE COMMISSION SHALL ELIMINATE  ALL  MAIN  AND  SERVICE  LINE  EXTENSION
 ALLOWANCES  FOR  GAS  SERVICE  AND  MAY INCREASE ALLOWANCES FOR ELECTRIC
 SERVICE. THE COMMISSION MAY ESTABLISH RULES THAT  PROVIDE  FOR  DISTINCT
 ELECTRIC ALLOWANCES FOR ALL-ELECTRIC CUSTOMERS AND FOR DUAL-FUEL CUSTOM-
 ERS AND MAY PROVIDE ADDITIONAL ELECTRIC ALLOWANCES TO BUILDINGS THAT ARE
 MADE  READY  FOR  BENEFICIAL  ELECTRIC LOADS SUCH AS THOSE WITH ELECTRIC
 VEHICLE CHARGING FACILITIES AND GRID INTERACTIVE BUILDINGS. THE  COMMIS-
 SION MAY ALSO ESTABLISH ALLOWANCES FOR BUILDINGS SEEKING INTERCONNECTION
 WITH THERMAL ENERGY NETWORKS.
   (C)  IN  ORDER  TO  MINIMIZE  LONG-TERM COSTS AND STRANDED ASSETS, AND
 MAXIMIZE SAVINGS AND BENEFITS FOR CUSTOMERS,  WITHIN  ONE  YEAR  OF  THE
 EFFECTIVE  DATE  OF  THIS  SECTION  THE  COMMISSION SHALL ISSUE AN ORDER
 REQUIRING EACH GAS CORPORATION, WITHIN ONE HUNDRED EIGHTY  DAYS  OF  THE
 ISSUANCE  OF THE ORDER, TO RESTRUCTURE ITS PLAN FOR ADDRESSING THE LEAK-
 PRONE GAS MAINS AND SERVICE LINES ON ITS SYSTEM TO FACILITATE THE ORDER-
 LY RIGHT-SIZING OF THE GAS DISTRIBUTION SYSTEM  TO  ACHIEVE  CONSISTENCY
 WITH  THE  CLIMATE  JUSTICE  AND  EMISSION REDUCTION MANDATES IN ARTICLE
 SEVENTY-FIVE OF THE ENVIRONMENTAL  CONSERVATION  LAW  WHILE  MAINTAINING
 SAFETY AND RELIABILITY OF THE GAS SYSTEM, SUBJECT TO ALL RELEVANT FEDER-
 AL  LAWS  AND  REGULATIONS.  TO  ACCOMPLISH  THIS,  THE COMMISSION SHALL
 REQUIRE EACH GAS CORPORATION, IN COORDINATION WITH ANY AND ALL  ELECTRIC
 CORPORATIONS  WITH OVERLAPPING SERVICE AREAS, TO PURSUE A GEOGRAPHICALLY
 TARGETED APPROACH TO IMPLEMENTING ALTERNATIVE  SOLUTIONS  THAT  MINIMIZE
 THE  REPLACEMENT OF LEAK-PRONE GAS MAINS AND SERVICE LINES WHILE ENCOUR-
 AGING  NEIGHBORHOOD-SCALE  FULL  BUILDING   ELECTRIFICATION,   INCLUDING
 THROUGH  THE  INSTALLATION  OF THERMAL ENERGY NETWORKS, RESULTING IN THE
 DECOMMISSIONING OF THE MAXIMUM FEASIBLE SEGMENT OF GAS MAIN  OR  SERVICE
 LINE.  THE  COMMISSION  SHALL REQUIRE EACH GAS CORPORATION, AFTER NOTICE
 AND COMMENT, TO  ESTABLISH  CRITERIA  FOR  EVALUATING  WHETHER  SPECIFIC
 SEGMENTS OF LEAK-PRONE MAINS AND SERVICE LINES ARE CANDIDATES FOR SUCH A
 GEOGRAPHICALLY  TARGETED APPROACH AND TO EVALUATE THEIR ENTIRE INVENTORY
 OF LEAK-PRONE PIPES TO CREATE A  STRATEGIC  DECOMMISSIONING  RANKING  IN
 WHICH  IT  RANKS  THE  SEGMENTS IN TERMS OF THE ABILITY TO ELECTRIFY ALL
 CUSTOMERS SERVED BY THE SEGMENT AND RETIRE THE GAS DISTRIBUTION  INFRAS-
 TRUCTURE.   THE COMMISSION SHALL REQUIRE EACH GAS CORPORATION TO FILE AN
 ANNUAL REPORT THAT PROVIDES A QUALITATIVE AND QUANTITATIVE ASSESSMENT OF
 THE REDUCTION OF LEAK-PRONE PIPE INVENTORY AND THAT UPDATES THE  STRATE-
 A. 4592                            12
 
 GIC  DECOMMISSIONING  RANKING  FROM THE PRIOR YEAR. THE COMMISSION SHALL
 ESTABLISH NOTICE REQUIREMENTS AND CONSUMER AND AFFORDABILITY PROTECTIONS
 IN ACCORDANCE WITH SECTION THIRTY OF THE PUBLIC SERVICE  LAW  APPLICABLE
 TO  CUSTOMERS SERVED BY SEGMENTS OF THE GAS DISTRIBUTION SYSTEM TARGETED
 FOR DECOMMISSIONING.
   (D) IN ORDER TO MAXIMIZE THE COST SAVINGS AND BENEFITS OF THE  TRANSI-
 TION  OF  THE ELECTRIC SYSTEM FOR THE EQUITABLE, ORDERLY, AND AFFORDABLE
 ACHIEVEMENT  OF  CONSISTENCY  WITH  THE  CLIMATE  JUSTICE  AND  EMISSION
 REDUCTION  MANDATES IN ARTICLE SEVENTY-FIVE OF THE ENVIRONMENTAL CONSER-
 VATION LAW, WITHIN ONE YEAR OF THE EFFECTIVE DATE OF  THIS  SECTION  THE
 COMMISSION  SHALL  ISSUE AN ORDER REQUIRING ALL ELECTRIC CORPORATIONS TO
 PURSUE ALL AVAILABLE ELECTRIC ENERGY EFFICIENCY AND  DEMAND  FLEXIBILITY
 MEASURES  THAT  ARE  COST-EFFECTIVE,  RELIABLE,  AND  FEASIBLE.  NO LESS
 FREQUENTLY THAN EVERY THREE YEARS, THE  COMMISSION  SHALL  IDENTIFY  THE
 STATEWIDE  ACHIEVABLE  POTENTIAL FOR ENERGY EFFICIENCY AND DEMAND FLEXI-
 BILITY MEASURES FOR THE SUBSEQUENT TEN-YEAR PERIOD AND ESTABLISH  ANNUAL
 ENERGY  EFFICIENCY  AND  DEMAND  FLEXIBILITY  TARGETS  FOR EACH ELECTRIC
 CORPORATION THAT ARE NO LOWER THAN ITS PROPORTIONAL SHARE OF THE  STATE-
 WIDE ACHIEVABLE POTENTIAL.
   (E) WITHIN ONE YEAR OF THE EFFECTIVE DATE OF THIS SECTION, THE COMMIS-
 SION  SHALL COMPLETE A PROCEEDING TO DEVELOP AND ISSUE A REPORT EVALUAT-
 ING AND CONSIDERING RATE MAKING STRATEGIES TO ENCOURAGE  AND  FACILITATE
 ACHIEVEMENT  OF  THE  CLIMATE JUSTICE AND EMISSION REDUCTION MANDATES IN
 ARTICLE SEVENTY-FIVE OF THE ENVIRONMENTAL CONSERVATION LAW.  THE  REPORT
 SHALL  EXPLORE OPTIONS FOR DEVELOPING AND ASSESSING THE IMPACTS OF RATES
 FOR ELECTRIC, GAS, STEAM, AND THERMAL ENERGY NETWORKS ON TOTAL  CUSTOMER
 ENERGY COSTS, AND SHALL EXPLORE OPTIONS FOR INTEGRATING COST SHARING AND
 RECOVERY  ACROSS  UTILITIES AND SERVICES. THE REPORT SHALL ALSO IDENTIFY
 STATUTORY BARRIERS TO THE IMPLEMENTATION OF SUCH STRATEGIES. IN  CONSID-
 ERING  SUCH  RATE MAKING STRATEGIES, THE COMMISSION SHALL HAVE A GOAL OF
 ENSURING THAT ALL LOW-TO-MODERATE INCOME RESIDENTIAL  CUSTOMERS  PAY  NO
 MORE THAN SIX PERCENT OF THEIR INCOME FOR ELECTRICITY.
   (F) WITHIN ONE YEAR OF THE EFFECTIVE DATE OF THIS SECTION, THE COMMIS-
 SION  SHALL  DETERMINE,  BASED  ON  THE  BEST AVAILABLE INFORMATION, THE
 GREENHOUSE GAS EMISSION REDUCTIONS NECESSARY TO BRING THE STATEWIDE  GAS
 DISTRIBUTION SYSTEM INTO ALIGNMENT WITH THE STATEWIDE TWO THOUSAND THIR-
 TY  AND  TWO THOUSAND FIFTY GREENHOUSE GAS EMISSION REDUCTION TARGETS IN
 ARTICLE SEVENTY-FIVE OF THE  ENVIRONMENTAL  CONSERVATION  LAW,  AND  SET
 INTERIM    EMISSION  REDUCTION  TARGETS  FOR EACH GAS UTILITY AS WELL AS
 DEVELOPING A PERIODIC PROCESS TO REVIEW AND UPDATE SUCH TARGETS;
   (G) WITHIN ONE YEAR OF THE EFFECTIVE DATE OF THIS SECTION, THE COMMIS-
 SION SHALL REVISE ITS RULES AND REGULATIONS FOR CONDUCTING  BENEFIT-COST
 ANALYSES  SO  THAT  THE METHODOLOGY AND THE BASE FINANCIAL AND FRAMEWORK
 ASSUMPTIONS FOR THE ANALYSIS SUPPORT ACHIEVEMENT OF THE CLIMATE  JUSTICE
 AND  EMISSION REDUCTION MANDATES IN ARTICLE SEVENTY-FIVE OF THE ENVIRON-
 MENTAL CONSERVATION LAW. SUCH REVISIONS SHALL INCLUDE, BUT NOT BE LIMIT-
 ED TO:
   (1) GREENHOUSE GAS EMISSION REDUCTION MANDATES  SHALL  BE  USED  AS  A
 CONSTRAINT  IN  DESIGNING THE SCENARIOS TO BE ANALYZED SUCH THAT ALL THE
 SCENARIOS SHALL  COMPLY  WITH  THE  STATUTORY  GREENHOUSE  GAS  EMISSION
 REQUIREMENTS  AND  ANY INTERIM TARGETS SET BY THE DEPARTMENT OF ENVIRON-
 MENTAL CONSERVATION OR THE COMMISSION  IN ORDER TO INTERNALIZE THE  COST
 OF ACHIEVING SUCH TARGETS IN THE BENEFIT-COST ANALYSIS.
   (2) QUANTIFICATION OF PUBLIC HEALTH IMPACTS FROM IMPROVEMENTS IN AMBI-
 ENT  AND INDOOR AIR QUALITY. WHEN QUANTITATIVE METRICS ARE NOT POSSIBLE,
 QUALITATIVE ANALYSIS SHALL BE INCLUDED.
 A. 4592                            13
 
   (3) CONSIDERATION OF THE SIGNIFICANT UNCERTAINTIES AND  RISKS  ASSOCI-
 ATED  WITH  DIFFERENT  SCENARIOS,  INCLUDING THE ENVIRONMENTAL IMPACT OF
 LEAKED GAS, THE PROLONGED RELIANCE ON THE GAS SYSTEM THAT  RESULTS  FROM
 LONG-LIVED  INVESTMENTS  IN  GAS INFRASTRUCTURE AND GAS-CONSUMING EQUIP-
 MENT, THE POSITIVE OPTION VALUE ASSOCIATED WITH MEASURES THAT CAN ELIMI-
 NATE  OR  DEFER  THE NEED FOR INVESTMENTS IN GAS INFRASTRUCTURE AND GAS-
 CONSUMING EQUIPMENT,  AND  POTENTIAL  CHALLENGES  ASSOCIATED  WITH  FULL
 ELECTRIFICATION.
   (4) IN INSTANCES WHERE AN ALTERNATIVE FUEL HAS AN ENVIRONMENTAL ATTRI-
 BUTE,  ONLY ATTRIBUTE ALTERNATIVE FUELS WITH EMISSION REDUCTION BENEFITS
 UNDER THE BENEFIT-COST ANALYSIS  IF  THE  ENVIRONMENTAL  ATTRIBUTES  ARE
 RETAINED BY THE UTILITY FOR THE BENEFIT OF THE UTILITY'S CUSTOMERS OR BY
 THE END-USE CUSTOMER.
   (5)  USE ACCURATE DEPRECIATION SCHEDULES THAT ASSUME THE FULL VALUE OF
 ANY NEW GAS ASSET IS FULLY DEPRECIATED NO LATER THAN TWO THOUSAND FIFTY,
 ABSENT DEMONSTRATION THAT THE SPECIFIC  ASSET  WILL  REMAIN  IN  SERVICE
 BEYOND  TWO  THOUSAND FIFTY, AND EARLIER IF IT IS LIKELY THAT SUCH ASSET
 WILL NEED TO BE PHASED OUT OR RETIRED BEFORE TWO  THOUSAND  FIFTY  GIVEN
 ANY  INTERIM GREENHOUSE GAS EMISSION REDUCTION TARGETS OR GEOGRAPHICALLY
 TARGETED STRATEGIC ASSET RETIREMENT.
   (6) ASSESS DEMOGRAPHIC IMPACTS BY MEASURING WITH  AS  MUCH  GEOGRAPHIC
 GRANULARITY AS POSSIBLE AND CONSIDERING DIFFERENT LEVELS OF EXPOSURE AND
 RISK  FACTORS  FOR  IMPACTS ON DISADVANTAGED COMMUNITIES AND OTHER POPU-
 LATIONS WITH VULNERABILITY TO CHANGES INDUCED BY REGULATION.
   2. NOTHING IN THIS CHAPTER OR ANY OTHER LAW OF NEW YORK STATE SHALL BE
 INTERPRETED OR OTHERWISE CONSTRUED AS  PREEMPTING  A  MUNICIPALITY  FROM
 ADOPTING BUILDING CODES OR OTHER REGULATIONS REGARDING ON-SITE EMISSIONS
 FOR NEW AND EXISTING BUILDINGS WITHIN THEIR LOCALITIES.
   § 14. This act shall take effect immediately.

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  4592--A
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 17, 2023
                                ___________
 
 Introduced  by  M.  of A. FAHY, SHRESTHA, SIMON, CARROLL, COLTON, GONZA-
   LEZ-ROJAS,  L. ROSENTHAL,  SHIMSKY,  SEAWRIGHT,   GALLAGHER,   ARDILA,
   BURDICK,  STERN,  LUNSFORD, DARLING, THIELE, FORREST, REYES, SILLITTI,
   CRUZ, LEVENBERG, RAMOS, KELLES,  MAMDANI,  RAJKUMAR,  DICKENS,  BORES,
   STECK,  BURGOS, DE LOS SANTOS, GIBBS, WEPRIN, EPSTEIN, SIMONE, STIRPE,
   CLARK, MITAYNES, ANDERSON, FALL, CUNNINGHAM, PAULIN, HUNTER, DINOWITZ,
   JEAN-PIERRE, OTIS, TAPIA, ZACCARO, KIM, HEVESI, DAVILA, SEPTIMO,  RAGA
   --  read  once and referred to the Committee on Corporations, Authori-
   ties and Commissions -- committee discharged,  bill  amended,  ordered
   reprinted as amended and recommitted to said committee
 
 AN  ACT  to amend the public service law, the public authorities law and
   the transportation corporations law, in relation to  aligning  utility
   regulation  with state climate justice and emission reduction targets;
   to repeal section 66-b of the public service law relating to continua-
   tion of gas service; and to repeal section 66-g of the public  service
   law  relating to the sale  of indigenous natural gas for generation of
   electricity
 
   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 "NY Home Energy Affordable Transition Act".
   § 2. Legislative findings. The legislature finds and declares that:
   1. The Climate Leadership and Community Protection Act  (the  "CLCPA")
 created  legal  mandates for dramatic greenhouse gas emission reductions
 from all sectors of New York's economy. The CLCPA also emphasizes equity
 in addressing climate change by requiring all state agencies and author-
 ities to prioritize reductions of greenhouse gas emissions and co-pollu-
 tants in disadvantaged communities and by mandating that  certain  state
 investments deliver benefits to these communities.
   2.  Buildings  are  New  York's largest source of greenhouse gas emis-
 sions, accounting for approximately  one-third  of  the  greenhouse  gas

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02688-07-3
              

 A. 4592--A                          2
 
 emissions  in  our  state.  New York state's buildings also produce more
 local air pollution than any other state in the  country,  resulting  in
 negative health outcomes such as increased rates of asthma, particularly
 among  children,  and  heart disease. Therefore, reducing greenhouse gas
 emissions and toxic air pollution emitted  from  New  York's  buildings,
 especially  in disadvantaged communities, is necessary to meet the CLCPA
 mandates.
   3. To meet the state's bold climate and equity mandates, New York will
 need to update how it regulates  gas  utility  service.  Doing  so  will
 enable strategic planning and investments in neighborhood-scale building
 decarbonization  and  help  bring  the statewide gas distribution system
 into alignment with the two  thousand  thirty  and  two  thousand  fifty
 greenhouse  gas  emission  reduction  mandates  in  the CLCPA through an
 orderly and equitable process, coordinated with appropriate  investments
 in  the electric system to ensure all New Yorkers have non-discriminato-
 ry, affordable access to the energy needed  for  heating,  cooling,  and
 powering the buildings in which they live and work.
   4.  The  New  York  public  service  law not only contains barriers to
 neighborhood-scale building decarbonization solutions  such  as  thermal
 energy  networks,  but  also  works  at  cross purposes with the state's
 climate and  affordability  goals,  by  requiring  and  subsidizing  the
 continued expansion of natural gas infrastructure.
   a.  The gas utility obligation to serve codified in the public service
 law is a  major  obstacle  to  utilities  developing  neighborhood-scale
 building decarbonization projects that would facilitate bringing the gas
 system  into  alignment  with  the  two thousand thirty and two thousand
 fifty greenhouse gas emission reduction  mandates  in  the  CLCPA  in  a
 manner that can mitigate costs for all utility customers, reduces green-
 house  gas  emissions and co-pollutants impacting local air quality, and
 provides a transition for impacted workers.
   b. Statutorily mandated utility system  extension  allowances  require
 existing  ratepayers  to  subsidize  gas  infrastructure hookups for new
 customers. According to a recent joint filing with  the  Public  Service
 Commission  by  the  New York state gas utilities, these required allow-
 ances cost gas utilities hundreds  of  millions  of  dollars  per  year.
 These costs are passed directly to existing gas customers.
   c.  Gas  utilities in New York are on track to collectively spend $150
 billion to replace thousands of miles of leak prone pipe in  the  coming
 years.  These  investments pose a risk of becoming stranded assets, with
 $77 billion of the total cost coming due after 2050, but can be  avoided
 in many cases by strategically investing in neighborhood-scale decarbon-
 ization projects.
   5.  New  Yorkers  are suffering from dramatic fossil fuel price spikes
 driven by the increasingly integrated global commodity  market,  subject
 to  the  whims  of  foreign dictators such as Russia's Vladimir Putin or
 Saudi Arabia's Prince Mohammed  bin  Salman.  Fossil  fuel  prices  have
 spiked  to historic high levels, making both electricity and gas utility
 service unaffordable  for  many  New  Yorkers.  Decarbonizing  buildings
 through  the strategic development of neighborhood-scale building decar-
 bonization projects, along  with  investing  in  energy  efficiency  and
 renewable  electricity,  will  save  New  Yorkers  money  now and in the
 future, protect against price volatility, and promote true energy  inde-
 pendence for New York state.
   6. Fossil fuel price spikes are exacerbating the affordability impacts
 of  the  COVID-19  Pandemic.  Over  a million households in New York now
 struggle to pay their utility bills. The Public Service  Commission  has
 A. 4592--A                          3

 declared,  but  not  yet  achieved, a goal that customers should not pay
 more than 6% of their income for utility energy services, a number based
 on a nationally accepted standard.
   7.  Thus,  it  is  the  intent of the legislature to enact the NY Home
 Energy Affordable Transition Act for the following purposes:
   a. to ensure that the public  service  law  regarding  regulation  and
 oversight  of  gas  utilities  will provide for the timely and strategic
 decarbonization and right-sizing of the gas  distribution  system  in  a
 just  and  affordable manner as required to meet the climate justice and
 emission reduction mandates of the CLCPA, appropriately balancing  rate-
 payers'  needs  and  interests with the maintenance of financially sound
 utilities, prioritizing low-to-moderate income customers  and  disadvan-
 taged communities, and encouraging neighborhood-scale transitions;
   b. to provide the Public Service Commission with the statutory author-
 ity  and  direction  to  align utility regulations and planning with the
 CLCPA climate justice and emission reduction mandates and to require the
 Public Service Commission to take a proactive role in the  timely  iden-
 tification  and  amendment of such regulations or rulings as may pose an
 impediment to achieving CLCPA mandates, and to identify  any  laws  that
 may pose an impediment;
   c.  to  end  statutorily mandated, ratepayer-subsidized incentives for
 the expansion of fossil fuel infrastructure while maintaining the  equi-
 table  provision  of  electric  service  for efficient heating, cooling,
 cooking, hot water, and other uses;
   d. to provide affordable access to electricity for heating and cooling
 and to protect  low-income  and  moderate-income  customers  from  undue
 burdens as they decarbonize their buildings; and
   e.  to  clarify that municipal building codes regulating on-site emis-
 sions are not preempted under New York state law.
   8. This legislation does not establish a ban on the use of gas. It  is
 neither  the  intent  nor  would it be the effect of this legislation to
 require the immediate transition of any existing gas customer to  alter-
 native heating and cooling services.
   §  3. Subdivision 1 of section 4 of the public service law, as amended
 by chapter 594 of the laws of 2021, is amended to read as follows:
   1. There shall be in the department of public service a public service
 commission, which shall possess the powers and duties hereinafter speci-
 fied, and also all powers necessary or proper to enable it to carry  out
 the  purposes  of  this chapter AND TO ENABLE ACHIEVEMENT OF THE CLIMATE
 JUSTICE AND EMISSION REDUCTION MANDATES IN CHAPTER ONE  HUNDRED  SIX  OF
 THE  LAWS OF TWO THOUSAND NINETEEN, AND SUCH SUCCESSORS IN LAW AND FUNC-
 TION AS MAY ARISE FROM TIME TO TIME.   The commission shall  consist  of
 five  members,  to  be appointed by the governor, by and with the advice
 and consent of the senate. A commissioner shall be designated as [chair-
 man] CHAIRPERSON of the commission by the  governor  to  serve  in  such
 capacity  at  the  pleasure  of the governor or until his OR HER term as
 commissioner expires whichever first occurs. At least  one  commissioner
 shall  have  experience in utility consumer advocacy. No more than three
 commissioners may be members of the same political party unless,  pursu-
 ant to action taken under subdivision two of this section, the number of
 commissioners  shall  exceed  five,  and in such event no more than four
 commissioners may be members of the same political party.
   § 4. Subdivisions 1 and 2 of section 5  of  the  public  service  law,
 subdivision  1  as  amended and subdivision 2 as added by chapter 155 of
 the laws of 1970, paragraph i of subdivision 1 as added by  chapter  375
 of the laws of 2022, are amended to read as follows:
 A. 4592--A                          4
 
   1.  The  jurisdiction,  supervision,  powers  and duties of the public
 service commission shall extend under this chapter:
   [b.]  A.  To  the  manufacture,  conveying,  transportation,  sale  or
 distribution of gas (natural or manufactured or  mixture  of  both)  and
 electricity  for  light,  heat,  COOLING, or power, to gas plants and to
 electric plants and to the persons or corporations  owning,  leasing  or
 operating the same.
   [c.]  B. To the manufacture, holding, distribution, transmission, sale
 or furnishing of steam for heat or power, to steam  plants  and  to  the
 persons or corporations owning, leasing or operating the same.
   [d.] C. To every telephone line which lies wholly within the state and
 that  part  within  the  state of New York of every telephone line which
 lies partly within and partly without the state and to  the  persons  or
 corporations owning, leasing or operating any such telephone line.
   [e.] D. To every telegraph line which lies wholly within the state and
 that  part  within  the  state of New York of every telegraph line which
 lies partly within and partly without the state and to  the  persons  or
 corporations owning, leasing or operating any such telegraph line.
   [f.]  E.  To  the  furnishing  or  distribution of water for domestic,
 commercial or public uses and to water systems and  to  the  persons  or
 corporations owning, leasing or operating the same.
   [g.]  F.  To  every  stock yard within the state and to the stock yard
 company owning, leasing or operating the same, to the same extent and in
 respect to the same objects and purposes as such  jurisdiction  extends,
 under this chapter, to depots, freight houses and shipping stations of a
 common  carrier, including the duty of such stock yard company to submit
 reports and be subjected to investigation as if it were a common  carri-
 er, and the powers and duties of such commission to fix charges and make
 and enforce orders relating to adequate service by such company.
   [h.]  G.  A  corporation or person owning or holding a majority of the
 stock of a common carrier, gas  corporation  or  electrical  corporation
 subject  to  the  jurisdiction of the public service commission shall be
 subject to the supervision of the public service commission  in  respect
 of  the  relations between such common carrier, gas corporation or elec-
 trical corporation and such owners or holders of a majority of the stock
 thereof in so far as such relations arise from  or  by  reason  of  such
 ownership  or  holding of stock thereof or the receipt or holding of any
 money or property thereof or from or by reason of any  contract  between
 them;  and  in respect of such relations shall in like manner and to the
 same extent as such common carrier, gas corporation or electrical corpo-
 ration be subject to examination of accounts, records and memoranda, and
 shall furnish such reports and information as the public service commis-
 sion shall from time to time direct and require, and shall be subject to
 like penalties for default therein.
   [i.] H. To thermal  energy  provided  by  gas  corporations,  electric
 corporations, or combination gas and electric corporations.
   2. The commission shall encourage all persons and corporations subject
 to  its  jurisdiction  to  formulate  and carry out long-range programs,
 individually or cooperatively,  for  the  performance  of  their  public
 service  responsibilities,  INCLUDING  THE  ACHIEVEMENT  OF  THE CLIMATE
 JUSTICE AND EMISSION REDUCTION MANDATES IN CHAPTER ONE  HUNDRED  SIX  OF
 THE  LAWS OF TWO THOUSAND NINETEEN, AND SUCH SUCCESSORS IN LAW AND FUNC-
 TION AS MAY ARISE FROM TIME TO TIME, with economy, efficiency, and  care
 for  the public safety, the preservation of environmental values and the
 conservation of natural resources.
 A. 4592--A                          5
 
   § 5. Section 30 of the public service law, as amended by  chapter  686
 of the laws of 2002, is amended to read as follows:
   § 30. Residential  gas,  electric  and  steam  service policy. 1. This
 article shall apply to the provision of all or  any  part  of  the  gas,
 electric  or  steam  service provided to any residential customer by any
 gas, electric or steam and municipalities corporation  or  municipality.
 It  is hereby declared to be the policy of this state that the continued
 provision of [all or any part of such gas,] electric and steam [service]
 SERVICES to all residential customers  without  unreasonable  qualifica-
 tions  or lengthy delays is necessary for the preservation of the health
 and general welfare, IS CONSISTENT WITH THE ACHIEVEMENT OF  THE  STATE'S
 CLIMATE  JUSTICE  AND  EMISSION REDUCTION MANDATES, and is in the public
 interest.  IT IS FURTHER THE POLICY OF THIS STATE THAT GAS  SERVICE  FOR
 EXISTING RESIDENTIAL CUSTOMERS MUST BE PROVIDED IN A MANNER THAT IS SAFE
 AND ADEQUATE, NOT UNJUSTLY DISCRIMINATORY OR UNDULY PREFERENTIAL, AND IN
 ALL  RESPECTS JUST AND REASONABLE, WHILE PROVIDING FOR AN ORDERLY RIGHT-
 SIZING OF THE GAS DISTRIBUTION SYSTEM TO ACHIEVE  CONSISTENCY  WITH  THE
 CLIMATE  JUSTICE  AND EMISSION REDUCTION MANDATES IN CHAPTER ONE HUNDRED
 SIX OF THE LAWS OF TWO THOUSAND NINETEEN, AND SUCH SUCCESSORS IN LAW AND
 FUNCTION AS MAY ARISE FROM TIME TO  TIME,  PRIORITIZING  LOW-TO-MODERATE
 INCOME  CUSTOMERS  AND  DISADVANTAGED  COMMUNITIES AS DEFINED IN SECTION
 75-0101 OF THE ENVIRONMENTAL CONSERVATION LAW, AND ENCOURAGING NEIGHBOR-
 HOOD-SCALE TRANSITIONS.
   2. THE COMMISSION SHALL REGULATE FOR THE CONTINUED  PROVISION  OF  GAS
 SERVICE  TO  ALL  EXISTING  RESIDENTIAL CUSTOMERS WHO CHOOSE TO CONTINUE
 SERVICE, UNLESS THE DISCONTINUANCE OF SERVICE IS PART OF  A  PROCESS  OF
 ORDERLY  RIGHT-SIZING OF THE GAS DISTRIBUTION SYSTEM TO ACHIEVE CONSIST-
 ENCY WITH THE CLIMATE JUSTICE AND EMISSION REDUCTION MANDATES IN CHAPTER
 ONE HUNDRED SIX OF THE LAWS OF TWO THOUSAND NINETEEN, AND  SUCH  SUCCES-
 SORS  IN  LAW  AND  FUNCTION AS MAY ARISE FROM TIME TO TIME.  AS PART OF
 SUCH PROCESS, THE COMMISSION SHALL TAKE ANY SUCH  ACTION,  AFTER  NOTICE
 AND A HEARING, AS IS NECESSARY TO FACILITATE THE ACHIEVEMENT OF CONSIST-
 ENCY WITH THE CLIMATE JUSTICE AND EMISSION REDUCTION MANDATES IN CHAPTER
 ONE  HUNDRED  SIX OF THE LAWS OF TWO THOUSAND NINETEEN, AND SUCH SUCCES-
 SORS IN LAW AND FUNCTION AS MAY ARISE FROM TIME TO TIME, BUT IN DOING SO
 IT SHALL ACTIVELY ENCOURAGE A TRANSITION AWAY FROM FUELS WITH HIGH LIFE-
 CYCLE GREENHOUSE  GAS  EMISSIONS  AND  ON-SITE  CO-POLLUTANT  EMISSIONS,
 ENCOURAGE  NEIGHBORHOOD-SCALE  TRANSITIONS, AND ENSURE THAT ALL RESIDEN-
 TIAL CUSTOMERS HAVE  ACCESS  TO  ELECTRICITY  FOR  HEATING  AND  COOLING
 SERVICES  WITHOUT  UNREASONABLE  QUALIFICATIONS,  UNREASONABLE COSTS, OR
 LENGTHY DELAYS, WITH  A  GOAL  THAT  LOW-TO-MODERATE  INCOME  CUSTOMERS,
 DEFINED  AS HOUSEHOLDS WITH ANNUAL INCOMES AT OR BELOW EIGHTY PERCENT OF
 THE AREA MEDIAN INCOME OF THE COUNTY OR METRO AREA  WHERE  THEY  RESIDE,
 INCLUDING  THOSE  WHO  ARE  ALREADY ELIGIBLE FOR THE COMMISSION'S ENERGY
 AFFORDABILITY PROGRAM, ARE  ADEQUATELY  PROTECTED  FROM  BEARING  ENERGY
 BURDENS  GREATER  THAN  SIX PERCENT OF THEIR INCOME, INCLUDING ANY UNDUE
 BURDENS IMPOSED BY THE COST TO PURCHASE AND OPERATE  ELECTRIC  EQUIPMENT
 NEEDED TO FACILITATE THE ACHIEVEMENT OF THE CLIMATE JUSTICE AND EMISSION
 REDUCTION  MANDATES  IN CHAPTER ONE HUNDRED SIX OF THE LAWS OF TWO THOU-
 SAND NINETEEN, AND SUCH SUCCESSORS IN LAW AND FUNCTION AS MAY ARISE FROM
 TIME TO TIME.
   § 6. Subdivision 1 of section 1020-cc of the public  authorities  law,
 as  amended  by section 11 of part A of chapter 173 of the laws of 2013,
 is amended to read as follows:
   1. All contracts of the authority shall be subject to  the  provisions
 of  the  state  finance law relating to contracts made by the state. The
 A. 4592--A                          6
 
 authority shall also establish rules and  regulations  with  respect  to
 providing  to  its residential gas, electric and steam utility customers
 those rights and protections provided in article two  and  sections  one
 hundred seventeen and one hundred eighteen of the public service law and
 section  one  hundred  thirty-one-s  of  the  social services law.   THE
 AUTHORITY  SHALL  ALSO  ENSURE  LOW-TO-MODERATE  INCOME  CUSTOMERS   ARE
 ADEQUATELY  PROTECTED  FROM  BEARING  ENERGY  BURDENS  GREATER  THAN SIX
 PERCENT OF THEIR INCOME PURSUANT TO SUBDIVISION TWO OF SECTION THIRTY OF
 THE PUBLIC SERVICE LAW. The authority shall conform to any safety stand-
 ards regarding manual lockable disconnect switches  for  solar  electric
 generating equipment established by the public service commission pursu-
 ant  to  subparagraph  (ii)  of  paragraph  (a)  of subdivision five and
 subparagraph (ii) of paragraph (a)  of  subdivision  five-a  of  section
 sixty-six-j of the public service law. The authority shall let contracts
 for construction or purchase of supplies, materials, or equipment pursu-
 ant  to  section one hundred three and paragraph (e) of subdivision four
 of section one hundred twenty-w of the general municipal law.
   § 7. Subdivisions 1, 3 and 4 of section 31 of the public service  law,
 as  added  by  chapter  713  of the laws of 1981, are amended to read as
 follows:
   1. Every gas corporation, electric corporation or  municipality  shall
 provide  residential  service  upon  the  oral  or written request of an
 applicant, provided that ANY  RESIDENTIAL  GAS  SERVICE  SHALL  ONLY  BE
 PROVIDED  IN  ACCORDANCE  WITH  SECTION  THIRTY  OF  THIS ARTICLE AND IS
 SUBJECT TO ANY ORDERS  OR  REGULATIONS  LIMITING  OR  DISCONTINUING  GAS
 SERVICE  THAT  ARE  IMPLEMENTED  BY  THE  COMMISSION  TO  FACILITATE THE
 ACHIEVEMENT  OF  CONSISTENCY  WITH  THE  CLIMATE  JUSTICE  AND  EMISSION
 REDUCTION  MANDATES  IN CHAPTER ONE HUNDRED SIX OF THE LAWS OF TWO THOU-
 SAND NINETEEN, AND SUCH SUCCESSORS IN LAW AND FUNCTION AS MAY ARISE FROM
 TIME TO TIME, AND PROVIDED FURTHER THAT the commission may require  that
 requests  for  service  be  in  writing  under circumstances as it deems
 necessary and proper as set forth by regulation,  and  provided  further
 that the applicant:
   (a)  makes  full payment for residential utility service provided to a
 prior account in [his] THE APPLICANT'S name; or
   (b) agrees to make payments under  a  deferred  payment  plan  of  any
 amounts due for service to a prior account in [his] THE APPLICANT'S name
 and  makes  a  down  payment  based on criteria to be established by the
 commission. No such down payment shall exceed one-half of any money  due
 from an applicant for residential utility service, or three months aver-
 age billing, whichever is less; or
   (c)  is a recipient of public assistance, supplemental security income
 or additional state payments pursuant to the social services law, or  is
 an  applicant  for  such assistance, income or payments, and the utility
 corporation or the municipality receives payment from, or is notified of
 the applicant's eligibility for utility payments by the social  services
 official  of  the  social services district in which such person resides
 for amounts due for service to a prior account in the applicant's  name,
 together  with  guarantee of future payments to the extent authorized by
 the social services law; AND
   (D) RECEIVES CLEAR, TIMELY INFORMATION FROM THE GAS CORPORATION, ELEC-
 TRIC CORPORATION,  MUNICIPALITY, OR RETAIL ENERGY SERVICE COMPANY, WRIT-
 TEN IN PLAIN LANGUAGE, AVAILABLE IN THE TOP TWELVE MOST COMMON NON-ENGL-
 ISH LANGUAGES SPOKEN BY LIMITED  ENGLISH  PROFICIENT  NEW  YORKERS,  AND
 APPROVED  BY  THE  COMMISSION AFTER STAKEHOLDER INPUT, ON INCENTIVES AND
 OPPORTUNITIES FOR  INSTALLING,  ENERGY-EFFICIENT  ELECTRIC  HEATING  AND
 A. 4592--A                          7
 
 COOLING   TECHNOLOGIES,   WEATHERIZATION,  DEMAND-SIDE  MANAGEMENT,  AND
 DISTRIBUTED ENERGY RESOURCE PROGRAMS.
   (E)  NOTHING IN THIS SUBDIVISION SHALL BE CONSTRUED TO PROHIBIT EXIST-
 ING GAS CUSTOMERS, IN ACCORDANCE WITH SECTION THIRTY OF THIS ARTICLE AND
 SUBJECT TO ANY OTHER REGULATIONS IMPLEMENTED  BY  THE  COMMISSION,  FROM
 RECONNECTING TO THE GAS DISTRIBUTION SYSTEM FOLLOWING A GAS INTERRUPTION
 DUE TO EMERGENCY REPAIRS OR REMEDIATION OF LEAKING EQUIPMENT.
   3.  Subject  to the requirements of subdivisions four and five of this
 section, AND IN ACCORDANCE WITH SECTION THIRTY OF THIS ARTICLE, whenever
 a residential customer moves to  a  new  residence  within  the  service
 territory  of  the  same  utility  corporation or municipality, [he] THE
 APPLICANT shall be eligible to receive service at the new residence  and
 such  service  shall  be  considered  a  continuation of service [in all
 respects] AS OPERATIONALLY FEASIBLE BASED ON INFRASTRUCTURE AND  COMMOD-
 ITY  AVAILABILITY  AT  THE  SITE OF THE NEW RESIDENCE, with any deferred
 payment agreement honored, and with all rights of such customer and such
 utility corporation provided by this article unimpaired.
   4. In the case of any application for service to a building  which  is
 not  supplied  with electricity or gas, a utility corporation or munici-
 pality shall be obligated to provide ELECTRIC service to such  a  build-
 ing,  AND  TO PROVIDE GAS SERVICE FOR SUCH A BUILDING IN ACCORDANCE WITH
 COMMISSION REGULATION, provided however, that the commission may require
 applicants for service to buildings [located in excess  of  one  hundred
 feet from gas or electric transmission lines] to pay or agree in writing
 to  pay  material  and  installation  costs  relating to the applicant's
 proportion of the pipe, conduit, duct or wire, or other facilities to be
 installed.
   § 8. Section 12 of the transportation corporations law, as  separately
 amended  by chapters 713 and 895 of the laws of 1981, is amended to read
 as follows:
   § 12. Gas and electricity must be supplied on application  IN  ACCORD-
 ANCE  WITH  COMMISSION  RULES  AND REGULATIONS. Except in the case of an
 application for residential utility service pursuant to article  two  of
 the  public  service law, upon written application of the owner or occu-
 pant of any building [within one hundred feet  of  any  main  of  a  gas
 corporation  or  gas  and electric corporation, or a line of an electric
 corporation or gas and electric corporation, appropriate to the  service
 requested,]  and  payment  by  [him] THE APPLICANT of all money due from
 [him] THE APPLICANT to the corporation, it shall supply [gas  or]  elec-
 tricity  as  may  be  required  for  [lighting] such building AND IT MAY
 PROVIDE GAS FOR SUCH BUILDING IN ACCORDANCE WITH COMMISSION  REGULATION,
 notwithstanding  there  be  rent  or  compensation in arrears for gas or
 electricity supplied, or for meter, wire, pipe or fittings furnished, to
 a former occupant thereof, unless such  owner  or  occupant  shall  have
 undertaken  or  agreed  with  the former occupant to pay or to exonerate
 [him] THEM from the payment of such arrears, and shall refuse or neglect
 to pay the same; and if for the space of ten days  after  such  applica-
 tion,  and  the  deposit  of  a  reasonable  sum as provided in the next
 section, if required, the corporation shall refuse or neglect to  supply
 gas  or [electric light] ELECTRICITY as required, such corporation shall
 forfeit and pay to the applicant the sum of ten dollars, and the further
 sum of five dollars for every day thereafter during which  such  refusal
 or  neglect  shall  continue; provided that no such corporation shall be
 required to lay service pipes or wires for the purpose of supplying  gas
 or  electric  light to any applicant where the ground in which such pipe
 or wire is required to be laid shall be frozen, or shall otherwise pres-
 A. 4592--A                          8
 
 ent serious obstacles to laying the same; nor unless the  applicant,  if
 required,  shall  deposit in advance with the corporation a sum of money
 sufficient to pay the cost of [his proportion] THE  APPLICANT'S  PORTION
 of  the  pipe,  conduit,  duct or wire required to be installed, and the
 expense of the installation of such portion.
   § 9. Subdivision 2 of section 66 of the public service law, as amended
 by chapter 877 of the laws of 1953, is amended  and  a  new  subdivision
 12-e is added to read as follows:
   2.  Investigate  and  ascertain, from time to time, the quality of gas
 supplied by persons, corporations and municipalities; examine or  inves-
 tigate  the  methods  employed by such persons, corporations and munici-
 palities in manufacturing, distributing and supplying gas or electricity
 for light, heat, COOLING, or power and in  transmitting  the  same,  and
 have  power  to  order such reasonable improvements as will best promote
 the public interest, preserve the public health and protect those  using
 such  gas  or  electricity  and  those  employed  in the manufacture and
 distribution thereof, and have power to  order  reasonable  improvements
 and  extensions  of  the works, wires, poles, lines, conduits, ducts and
 other reasonable devices, apparatus and property  of  gas  corporations,
 electric corporations and municipalities; and have power after an inves-
 tigation  and  a hearing to order any corporation having authority under
 any general or special law or under any charter  or  franchise,  to  lay
 down,  erect or maintain wires, pipes, conduits, ducts or other fixtures
 in, over or under the streets, highways and public places of any munici-
 pality for the purpose of supplying,  selling  or  distributing  natural
 gas, to augment its supply of natural gas, whenever the commission deems
 necessary  and  whenever  artificial  gas can be reasonably obtained, by
 acquiring by purchase, manufacture or otherwise a supply thereof  to  be
 mixed  with such natural gas, in order to render adequate service to the
 customers of such corporation or to maintain a proper and uniform  pres-
 sure;  and  have power after an investigation and a hearing to order any
 corporation having authority under any general or special law  or  under
 any  charter  or franchise, to lay down, erect or maintain wires, pipes,
 conduits, ducts or other fixtures in, over or under the  streets,  high-
 ways and public places of any municipality for the purpose of supplying,
 selling or distributing artificial gas, to augment its supply of artifi-
 cial  gas,  whenever the commission deems necessary and whenever natural
 gas can be reasonably obtained, by acquiring by purchase or otherwise  a
 supply  thereof to be mixed with such artificial gas, in order to render
 adequate service to the customers of such corporation or to  maintain  a
 proper  and  uniform pressure; and to fix such rate for the supplying of
 mixed gas as shall secure to such corporation a  fair  return;  and  may
 order  the  curtailment  or discontinuance of the use of natural gas for
 manufacturing or industrial purposes, for  periods  aggregating  not  to
 exceed  four  months  in  any calendar year, if it is established to the
 satisfaction of the commission that the supply of  natural  gas  is  not
 adequate  to meet the reasonable demands of domestic consumption and may
 [prohibit the use of natural gas  in  wasteful  devices  and  practices]
 ORDER  THE  CURTAILMENT OR DISCONTINUANCE OF THE USE OF THE DISTRIBUTION
 SYSTEM, WHERE THE COMMISSION HAS DETERMINED  THAT  SUCH  CURTAILMENT  OR
 DISCONTINUANCE  IS REASONABLY REQUIRED TO IMPLEMENT STATE ENERGY POLICY,
 PROVIDED THAT SUCH CURTAILMENT OR  DISCONTINUANCE  SHALL  BE  CONSISTENT
 WITH A PLAN FOR THE PHASE-OUT OF THE USE OF A GAS DISTRIBUTION SYSTEM TO
 ACHIEVE  CONSISTENCY  WITH  THE  CLIMATE  JUSTICE AND EMISSION REDUCTION
 MANDATES IN CHAPTER ONE HUNDRED SIX OF THE LAWS OF  TWO  THOUSAND  NINE-
 TEEN,  AND SUCH SUCCESSORS IN LAW AND FUNCTION AS MAY ARISE FROM TIME TO
 A. 4592--A                          9
 
 TIME, ENCOURAGING NEIGHBORHOOD-SCALE TRANSITIONS FOR CLEAN  HEATING  AND
 COOLING,  PRIORITIZING  DISADVANTAGED  COMMUNITIES AS DEFINED IN SECTION
 75-0101 OF THE ENVIRONMENTAL CONSERVATION LAW, AND ACCOMPANIED BY  COOR-
 DINATION ASSISTANCE AND, WHERE REASONABLY REQUIRED, FINANCIAL ASSISTANCE
 IN THE IDENTIFICATION AND ADOPTION OF ALTERNATIVES, AND MAY PROHIBIT THE
 USE  OF NATURAL GAS IN WASTEFUL DEVICES AND PRACTICES, AS DEFINED BY THE
 COMMISSION, AND REQUIRE CONSERVATION AND EFFICIENCY IN GAS USAGE.
   12-E. THE COMMISSION SHALL REVIEW THE  CAPITAL  CONSTRUCTION  PLAN  OF
 EACH  GAS CORPORATION AND ESTABLISH A PROCESS TO EXAMINE FEASIBLE ALTER-
 NATIVES TO SUCH CONSTRUCTION IN ORDER TO ACHIEVE  CONSISTENCY  WITH  THE
 CLIMATE  JUSTICE  AND EMISSION REDUCTION MANDATES IN CHAPTER ONE HUNDRED
 SIX OF THE LAWS OF TWO THOUSAND NINETEEN, AND SUCH SUCCESSORS IN LAW AND
 FUNCTION AS MAY ARISE FROM TIME TO TIME, ENCOURAGING  NEIGHBORHOOD-SCALE
 TRANSITIONS  AWAY  FROM  FUELS WITH HIGH LIFE-CYCLE GREENHOUSE GAS EMIS-
 SIONS AND ON-SITE CO-POLLUTANT EMISSIONS,  PRIORITIZING  LOW-TO-MODERATE
 INCOME  CUSTOMERS  AND  DISADVANTAGED  COMMUNITIES AS DEFINED IN SECTION
 75-0101 OF THE ENVIRONMENTAL  CONSERVATION  LAW.    SUCH  PROCESS  SHALL
 INCLUDE  THRESHOLDS  AND  CRITERIA  FOR THE TYPES OF PROJECTS SUBJECT TO
 SUCH EXAMINATION. THE COMMISSION SHALL  REQUIRE  PARTICIPATION  IN  SUCH
 PROCESS BY EACH ELECTRIC CORPORATION WITH A SERVICE AREA OVERLAPPING THE
 SERVICE  AREA  OF THE GAS CORPORATION; AND THE COMMISSION SHALL HAVE THE
 POWER TO REQUIRE ANY SUCH ELECTRIC CORPORATION TO PARTICIPATE IN  ALTER-
 NATIVES  TO GAS CAPITAL CONSTRUCTION, INCLUDING PARTICIPATION IN FINANC-
 ING. ANY COSTS INCURRED BY SUCH ELECTRIC  CORPORATION  FOR  SUCH  CORPO-
 RATION'S  PARTICIPATION  SHALL  BE  SUBJECT  TO  AN OPPORTUNITY FOR FULL
 RECOVERY, AS DETERMINED BY THE COMMISSION.
   § 10. Section 66-a of the public service law, as added by chapter 7 of
 the laws of 1948, subdivision 1 as amended and subdivision 3 as added by
 chapter 582 of the laws of 1975, subdivision 2 as amended by chapter 722
 of the laws of 1977, is amended to read as follows:
   § 66-a. Conservation of gas,  declaration  of  policy,  delegation  of
 power.    1.  It  is hereby declared to be the policy of this state that
 when there develops in any area a situation under  which  a  gas  corpo-
 ration supplying gas to such area is unable to meet the reasonable needs
 of  its  consumers  and  of  persons or corporations applying for new or
 additional gas service, the available supply of gas shall  be  allocated
 among  the  customers  of such gas corporation, in such manner as may be
 necessary to protect public health and safety and to avoid  undue  hard-
 ship,  PARTICULARLY  FOR  LOW-TO-MODERATE  INCOME RESIDENTIAL CUSTOMERS,
 ELECTRIC GENERATION NEEDED FOR ELECTRIC SYSTEM RELIABILITY, AND  CUSTOM-
 ERS  WITH  HARD-TO-ELECTRIFY INDUSTRIAL AND COMMERCIAL USES, pursuant to
 rules and regulations as may be adopted by the commission, and  that  to
 carry  out  this  declared policy the jurisdiction of the public service
 commission should be clarified.  IT IS FURTHER DECLARED TO BE THE POLICY
 OF THIS STATE THAT GAS SERVICE TO EXISTING CUSTOMERS MUST BE PROVIDED IN
 A MANNER THAT IS SAFE AND ADEQUATE, NOT UNJUSTLY DISCRIMINATORY OR UNDU-
 LY PREFERENTIAL, AND IN ALL RESPECTS JUST AND REASONABLE.
   2. Notwithstanding the provisions of any statute or any franchise held
 by a gas corporation, the commission shall have power, upon the  finding
 that CONTINUED GAS SERVICE IS NOT CONSISTENT WITH THE ACHIEVEMENT OF THE
 CLIMATE  JUSTICE  AND EMISSION REDUCTION MANDATES IN CHAPTER ONE HUNDRED
 SIX OF THE LAWS OF TWO THOUSAND NINETEEN, AND SUCH SUCCESSORS IN LAW AND
 FUNCTION AS MAY ARISE FROM TIME TO TIME, OR THAT  there  exists  such  a
 shortage  of  gas  in  any  area  in the state, that the gas corporation
 supplying such area is unable and will be unable to  secure  or  produce
 sufficient  gas  to  meet  the  reasonable needs of its customers and of
 A. 4592--A                         10
 
 persons or corporations applying for new or additional gas  service,  to
 require such corporation to immediately discontinue the supplying of gas
 to  additional  customers  or of supplying additional service to present
 customers,  for  such  purpose  or  purposes as may be designated by the
 commission, or to customers using gas for a purpose  prohibited  by  the
 commission  pursuant  to  this  act,  and that upon the finding that the
 supply of gas available is  and  will  be  insufficient  to  supply  the
 demands  of  all consumers receiving service, to require such gas corpo-
 ration to curtail or discontinue  service  to  any  or  all  classes  of
 customers  of  such  gas  corporation.  In  imposing such a direction or
 requirement, the commission shall give consideration first  to  existing
 domestic  uses  and  uses  deemed  to  be necessary by the commission to
 protect public health and safety and to avoid undue hardship [and  shall
 be  limited  to the period of the emergency provided that the gas corpo-
 ration affected shall make such restriction,  curtailing  or  discontin-
 uance  applicable  to  all customers or applicants for service in a like
 class. If the commission determines that good cause exists for supplying
 service to additional customers or for supplying additional  service  to
 some  existing  customers, notwithstanding the curtailment or discontin-
 uance of service to other existing customers, it shall,  to  the  extent
 feasible, allocate gas with equal priority to new or additional domestic
 uses  of  gas  and  commercial or industrial processes which require gas
 because there is no practical substitute for it in  such  proportion  as
 the  commission  determines to be reasonable.  Provided that the commis-
 sion shall be permitted, after public hearing, to authorize any  natural
 gas  produced  from  lands  under the waters of Lake Erie to be used for
 process or feedstock requirements].  The  commission  is  authorized  to
 adopt such rules, regulations and orders as are necessary or appropriate
 to carry out these delegated powers.
   3.  In carrying out the delegated powers provided for in this section,
 the commission shall, to the extent practicable, determine and establish
 gas conservation measures or standards, INCLUDING ENERGY EFFICIENT ELEC-
 TRIFICATION OF GAS END USES. The commission may require compliance  with
 such measures or standards as a condition of receiving service.
   4.  THE COMMISSION SHALL DETERMINE CONDITIONS UNDER WHICH NEW OR ADDI-
 TIONAL GAS SERVICE IS WARRANTED NOTWITHSTANDING  THE  NEED  TO  CONSERVE
 RESOURCES  FOR  SERVICE  TO EXISTING GAS CUSTOMERS.   SUCH DETERMINATION
 SHALL BE CONSISTENT WITH THE ACHIEVEMENT  OF  THE  CLIMATE  JUSTICE  AND
 EMISSION  REDUCTION  MANDATES  IN CHAPTER ONE HUNDRED SIX OF THE LAWS OF
 TWO THOUSAND NINETEEN, AND SUCH SUCCESSORS IN LAW AND  FUNCTION  AS  MAY
 ARISE  FROM  TIME  TO  TIME, AND MAY TAKE INTO ACCOUNT FACTORS INCLUDING
 ECONOMIC DEVELOPMENT, IMPACTS ON NEW AND  EXISTING  CUSTOMERS  INCLUDING
 LOW-TO-MODERATE INCOME CUSTOMERS, IMPACTS ON SYSTEM SAFETY AND ADEQUACY,
 EQUITY  TOWARD  EXISTING CUSTOMERS WITH LIMITED CONVERSION ALTERNATIVES,
 AND THE FEASIBILITY OF NEIGHBORHOOD-SCALE ALTERNATIVES TO USAGE OF FUELS
 WITH HIGH LIFE-CYCLE GREENHOUSE GAS EMISSIONS AND  ON-SITE  CO-POLLUTANT
 EMISSIONS, INCLUDING THERMAL ENERGY NETWORKS.
   5.  THE  COMMISSION  SHALL  REQUIRE  GAS  AND/OR ELECTRIC UTILITIES TO
 PROVIDE COORDINATION ASSISTANCE AND FINANCIAL ASSISTANCE, IN SUCH  FORMS
 AS  THE  COMMISSION  DEEMS REASONABLY REQUIRED TO IMPLEMENT STATE ENERGY
 POLICY, TO IDENTIFY AND ADOPT ALTERNATIVES WHERE APPLICATIONS FOR NEW OR
 ADDITIONAL GAS SERVICE ARE DENIED AND ENCOURAGE NEIGHBORHOOD-SCALE TRAN-
 SITIONS.
   § 11. Section 66-b of the public service law is REPEALED.
   § 12. The public service law is amended by adding a new  section  66-w
 to read as follows:
 A. 4592--A                         11
 
   §  66-W.  EXPANSION  OF  GAS  DISTRIBUTION  INFRASTRUCTURE.  EXCEPT AS
 PROVIDED IN THIS SECTION, AND NOTWITHSTANDING  ANY  OTHER  PROVISION  OF
 THIS  CHAPTER, AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY-FOUR, NO
 GAS CORPORATION SHALL COMMENCE  CONSTRUCTION  OF  NEW  GAS  DISTRIBUTION
 INFRASTRUCTURE  THE RESULT  OF WHICH WOULD BE TO EXPAND THE AVAILABILITY
 OF SERVICE INTO GEOGRAPHIC AREAS WHERE GAS  SERVICE  WAS  NOT  AVAILABLE
 PRIOR TO THAT DATE AS DEFINED BY THE APPLICABLE UTILITY'S CERTIFICATE OF
 PUBLIC  CONVENIENCE  AND  NECESSITY APPROVED BY THE COMMISSION. NO  SUCH
 NEW GAS DISTRIBUTION INFRASTRUCTURE   SHALL BE PUT  INTO  SERVICE  AFTER
 DECEMBER  THIRTY-FIRST,  TWO  THOUSAND TWENTY-FIVE. THE COMMISSION   MAY
 AUTHORIZE  EXCEPTIONS ON A CASE-BY-CASE BASIS, PROVIDED THAT THE COMMIS-
 SION FINDS THAT THE  PROJECT  QUALIFYING  FOR  THE  EXCEPTION  SERVES  A
 COMPELLING  STATE  INTEREST,  ALTERNATIVES TO GAS SERVICE ARE EITHER NOT
 TECHNICALLY FEASIBLE OR PROHIBITIVELY EXPENSIVE, AND  THAT  THE  PROJECT
 WILL  BE  COMPLETED AND PUT INTO SERVICE NOT LATER THAN DECEMBER THIRTY-
 FIRST, TWO THOUSAND TWENTY-SEVEN. FOR THE PURPOSES OF THIS SECTION,  GAS
 DISTRIBUTION  INFRASTRUCTURE SHALL INCLUDE ALL REAL ESTATE, FIXTURES AND
 PERSONAL PROPERTY OPERATED,  OWNED,  USED  OR  TO  BE  USED  FOR  OR  IN
 CONNECTION WITH OR TO FACILITATE THE MANUFACTURE, CONVEYING, TRANSPORTA-
 TION,  DISTRIBUTION,  SALE OR FURNISHING OF GAS (NATURAL OR MANUFACTURED
 OR A MIXTURE OF BOTH) FOR LIGHT, HEAT OR POWER,  BUT  DOES  NOT  INCLUDE
 PROPERTY  USED SOLELY FOR OR IN CONNECTION WITH THE BUSINESS OF SELLING,
 DISTRIBUTING OR FURNISHING OF GAS IN ENCLOSED CONTAINERS.
   § 13. Section 66-g of the public service law is REPEALED.
   § 14. The public service law is amended by adding a new  section  77-a
 to read as follows:
   §  77-A. ALIGNING UTILITY REGULATION WITH CLIMATE JUSTICE AND EMISSION
 REDUCTION MANDATES. 1.  WITHIN THREE MONTHS OF  THE  EFFECTIVE  DATE  OF
 THIS  SECTION,  THE  COMMISSION SHALL INITIATE A PROCEEDING, OR MULTIPLE
 PROCEEDINGS, AS IT DEEMS APPROPRIATE, TO CONSIDER AND ACT ON THE MATTERS
 IDENTIFIED IN THIS SECTION IN ORDER TO BETTER ALIGN  ITS  REGULATION  OF
 UTILITY  SERVICES  WITH  THE TIMELY ACHIEVEMENT, OF CONSISTENCY WITH THE
 CLIMATE JUSTICE AND EMISSION REDUCTION MANDATES IN CHAPTER  ONE  HUNDRED
 SIX OF THE LAWS OF TWO THOUSAND NINETEEN, AND SUCH SUCCESSORS IN LAW AND
 FUNCTION  AS MAY ARISE FROM TIME TO TIME. IF THE COMMISSION IS   ALREADY
 ENGAGED IN A PROCEEDING ADDRESSING ONE OR MORE OF THE   MATTERS  IDENTI-
 FIED  IN THIS SECTION, IT SHALL NOT BE REQUIRED TO OPEN A NEW PROCEEDING
 ON THAT MATTER.   FOLLOWING  COMPLETION  OF  ALL  PROCEEDINGS  INITIATED
 PURSUANT  TO  THIS SECTION, THE COMMISSION SHALL INITIATE REGULAR SUBSE-
 QUENT  PROCEEDINGS,  AS  IT  DEEMS  NECESSARY, TO ENSURE  THE   ACHIEVE-
 MENT   OF   THE   GOALS   OUTLINED   IN THIS SECTION.  THE PROCEEDING OR
 PROCEEDINGS SHALL INCLUDE:
   (A) WITHIN ONE YEAR OF THE EFFECTIVE DATE OF THIS SECTION, A REVIEW OF
 THE PUBLIC SERVICE LAW AND ITS CURRENT  RULES  AND  POLICY  GUIDANCE  TO
 IDENTIFY  ANY  LAW,  RULE, GUIDANCE, OR LACK THEREOF, THAT  MAY  INHIBIT
 TIMELY,   EQUITABLE   ACHIEVEMENT   OF   CONSISTENCY WITH THE    CLIMATE
 JUSTICE  AND  EMISSION  REDUCTION MANDATES IN CHAPTER ONE HUNDRED SIX OF
 THE LAWS OF TWO THOUSAND NINETEEN, AND SUCH SUCCESSORS IN LAW AND  FUNC-
 TION AS MAY ARISE FROM TIME TO TIME.  THE COMMISSION SHALL REPORT TO THE
 LEGISLATURE  ITS  PROGRESS  AND FINDINGS, IDENTIFY SUBSEQUENT ACTIONS IT
 WILL  TAKE,  AND  MAKE  RECOMMENDATIONS  FOR ANY STATUTORY AMENDMENTS OR
 OTHER ACTIONS THAT MAY  BE NEEDED TO FACILITATE THE  TIMELY  ACHIEVEMENT
 OF SUCH  MANDATES.
   (B)  WITHIN ONE YEAR OF THE EFFECTIVE DATE OF THIS SECTION, A REVISION
 OF THE COMMISSION'S RULES AND REGULATIONS  FOR  DETERMINING  APPROPRIATE
 ALLOWANCES  FOR  THE  EXTENSION  OF GAS AND ELECTRIC UTILITY SERVICES TO
 A. 4592--A                         12
 
 ENSURE THAT UTILITY SERVICE IS PROVIDED IN A MANNER CONSISTENT WITH  THE
 ACHIEVEMENT  OF  THE  CLIMATE JUSTICE AND EMISSION REDUCTION MANDATES IN
 CHAPTER ONE HUNDRED SIX OF THE LAWS OF TWO THOUSAND NINETEEN,  AND  SUCH
 SUCCESSORS IN LAW AND FUNCTION AS MAY ARISE FROM TIME TO TIME. IN ESTAB-
 LISHING  RULES GOVERNING THE ALLOWANCE FOR THE EXTENSION OF GAS SERVICE,
 THE COMMISSION SHALL ELIMINATE  ALL  MAIN  AND  SERVICE  LINE  EXTENSION
 ALLOWANCES  FOR  GAS  SERVICE  AND  MAY INCREASE ALLOWANCES FOR ELECTRIC
 SERVICE. THE COMMISSION MAY ESTABLISH RULES THAT  PROVIDE  FOR  DISTINCT
 ELECTRIC ALLOWANCES FOR ALL-ELECTRIC CUSTOMERS AND FOR DUAL-FUEL CUSTOM-
 ERS AND MAY PROVIDE ADDITIONAL ELECTRIC ALLOWANCES TO BUILDINGS THAT ARE
 MADE  READY  FOR  BENEFICIAL  ELECTRIC LOADS SUCH AS THOSE WITH ELECTRIC
 VEHICLE CHARGING FACILITIES AND GRID INTERACTIVE BUILDINGS. THE  COMMIS-
 SION MAY ALSO ESTABLISH ALLOWANCES FOR BUILDINGS SEEKING INTERCONNECTION
 WITH THERMAL ENERGY NETWORKS.
   (C)  IN  ORDER  TO  MINIMIZE  LONG-TERM COSTS AND STRANDED ASSETS, AND
 MAXIMIZE SAVINGS AND BENEFITS FOR CUSTOMERS,  WITHIN  ONE  YEAR  OF  THE
 EFFECTIVE  DATE  OF  THIS  SECTION  THE  COMMISSION SHALL ISSUE AN ORDER
 REQUIRING EACH GAS CORPORATION, WITHIN ONE HUNDRED EIGHTY  DAYS  OF  THE
 ISSUANCE  OF THE ORDER, TO RESTRUCTURE ITS PLAN FOR ADDRESSING THE LEAK-
 PRONE GAS MAINS AND SERVICE LINES ON ITS SYSTEM TO FACILITATE THE ORDER-
 LY RIGHT-SIZING OF THE GAS DISTRIBUTION SYSTEM  TO  ACHIEVE  CONSISTENCY
 WITH  THE CLIMATE JUSTICE AND EMISSION REDUCTION MANDATES IN CHAPTER ONE
 HUNDRED SIX OF THE LAWS OF TWO THOUSAND NINETEEN, AND SUCH SUCCESSORS IN
 LAW AND FUNCTION AS MAY ARISE FROM TIME TO TIME, WHILE MAINTAINING SAFE-
 TY AND RELIABILITY OF THE GAS SYSTEM, SUBJECT TO  ALL  RELEVANT  FEDERAL
 LAWS  AND  REGULATIONS. TO ACCOMPLISH THIS, THE COMMISSION SHALL REQUIRE
 EACH GAS CORPORATION, IN COORDINATION WITH ANY AND ALL  ELECTRIC  CORPO-
 RATIONS  WITH  OVERLAPPING  SERVICE  AREAS,  TO  PURSUE A GEOGRAPHICALLY
 TARGETED APPROACH TO IMPLEMENTING ALTERNATIVE  SOLUTIONS  THAT  MINIMIZE
 THE  REPLACEMENT OF LEAK-PRONE GAS MAINS AND SERVICE LINES WHILE ENCOUR-
 AGING  NEIGHBORHOOD-SCALE  FULL  BUILDING   ELECTRIFICATION,   INCLUDING
 THROUGH  THE  INSTALLATION  OF THERMAL ENERGY NETWORKS, RESULTING IN THE
 DECOMMISSIONING OF THE MAXIMUM FEASIBLE SEGMENT OF GAS MAIN  OR  SERVICE
 LINE.  THE  COMMISSION  SHALL REQUIRE EACH GAS CORPORATION, AFTER NOTICE
 AND COMMENT, TO  ESTABLISH  CRITERIA  FOR  EVALUATING  WHETHER  SPECIFIC
 SEGMENTS OF LEAK-PRONE MAINS AND SERVICE LINES ARE CANDIDATES FOR SUCH A
 GEOGRAPHICALLY  TARGETED APPROACH AND TO EVALUATE THEIR ENTIRE INVENTORY
 OF LEAK-PRONE PIPES TO CREATE A  STRATEGIC  DECOMMISSIONING  RANKING  IN
 WHICH  IT  RANKS  THE  SEGMENTS IN TERMS OF THE ABILITY TO ELECTRIFY ALL
 CUSTOMERS SERVED BY THE SEGMENT AND RETIRE THE GAS DISTRIBUTION  INFRAS-
 TRUCTURE.   THE COMMISSION SHALL REQUIRE EACH GAS CORPORATION TO FILE AN
 ANNUAL REPORT THAT PROVIDES A QUALITATIVE AND QUANTITATIVE ASSESSMENT OF
 THE REDUCTION OF LEAK-PRONE PIPE INVENTORY AND THAT UPDATES THE  STRATE-
 GIC  DECOMMISSIONING  RANKING  FROM THE PRIOR YEAR. THE COMMISSION SHALL
 ESTABLISH NOTICE REQUIREMENTS AND CONSUMER AND AFFORDABILITY PROTECTIONS
 IN ACCORDANCE WITH SECTION THIRTY OF THE PUBLIC SERVICE  LAW  APPLICABLE
 TO  CUSTOMERS SERVED BY SEGMENTS OF THE GAS DISTRIBUTION SYSTEM TARGETED
 FOR DECOMMISSIONING.
   (D) IN ORDER TO MAXIMIZE THE COST SAVINGS AND BENEFITS OF THE  TRANSI-
 TION  OF  THE ELECTRIC SYSTEM FOR THE EQUITABLE, ORDERLY, AND AFFORDABLE
 ACHIEVEMENT  OF  CONSISTENCY  WITH  THE  CLIMATE  JUSTICE  AND  EMISSION
 REDUCTION  MANDATES  IN CHAPTER ONE HUNDRED SIX OF THE LAWS OF TWO THOU-
 SAND NINETEEN, AND SUCH SUCCESSORS IN LAW AND FUNCTION AS MAY ARISE FROM
 TIME TO TIME, WITHIN ONE YEAR OF THE EFFECTIVE DATE OF THIS SECTION  THE
 COMMISSION  SHALL  ISSUE AN ORDER REQUIRING ALL ELECTRIC CORPORATIONS TO
 PURSUE ALL AVAILABLE ELECTRIC ENERGY EFFICIENCY AND  DEMAND  FLEXIBILITY
 A. 4592--A                         13
 
 MEASURES  THAT  ARE  COST-EFFECTIVE,  RELIABLE,  AND  FEASIBLE.  NO LESS
 FREQUENTLY THAN EVERY THREE YEARS, THE  COMMISSION  SHALL  IDENTIFY  THE
 STATEWIDE  ACHIEVABLE  POTENTIAL FOR ENERGY EFFICIENCY AND DEMAND FLEXI-
 BILITY  MEASURES FOR THE SUBSEQUENT TEN-YEAR PERIOD AND ESTABLISH ANNUAL
 ENERGY EFFICIENCY AND  DEMAND  FLEXIBILITY  TARGETS  FOR  EACH  ELECTRIC
 CORPORATION  THAT ARE NO LOWER THAN ITS PROPORTIONAL SHARE OF THE STATE-
 WIDE ACHIEVABLE POTENTIAL.
   (E) WITHIN ONE YEAR OF THE EFFECTIVE DATE OF THIS SECTION, THE COMMIS-
 SION SHALL COMPLETE A PROCEEDING TO DEVELOP AND ISSUE A REPORT  EVALUAT-
 ING  AND  CONSIDERING RATE MAKING STRATEGIES TO ENCOURAGE AND FACILITATE
 ACHIEVEMENT OF THE CLIMATE JUSTICE AND EMISSION  REDUCTION  MANDATES  IN
 CHAPTER  ONE  HUNDRED SIX OF THE LAWS OF TWO THOUSAND NINETEEN, AND SUCH
 SUCCESSORS IN LAW AND FUNCTION AS MAY ARISE FROM  TIME  TO  TIME.    THE
 REPORT SHALL EXPLORE OPTIONS FOR DEVELOPING AND ASSESSING THE IMPACTS OF
 RATES  FOR  ELECTRIC,  GAS,  STEAM, AND THERMAL ENERGY NETWORKS ON TOTAL
 CUSTOMER ENERGY COSTS, AND SHALL EXPLORE OPTIONS  FOR  INTEGRATING  COST
 SHARING  AND  RECOVERY  ACROSS  UTILITIES AND SERVICES. THE REPORT SHALL
 ALSO IDENTIFY STATUTORY BARRIERS TO THE IMPLEMENTATION OF  SUCH  STRATE-
 GIES.  IN  CONSIDERING SUCH RATE MAKING STRATEGIES, THE COMMISSION SHALL
 HAVE A GOAL OF ENSURING  THAT  ALL  LOW-TO-MODERATE  INCOME  RESIDENTIAL
 CUSTOMERS PAY NO MORE THAN SIX PERCENT OF THEIR INCOME FOR ELECTRICITY.
   (F) WITHIN ONE YEAR OF THE EFFECTIVE DATE OF THIS SECTION, THE COMMIS-
 SION  SHALL  DETERMINE,  BASED  ON  THE  BEST AVAILABLE INFORMATION, THE
 GREENHOUSE GAS EMISSION REDUCTIONS NECESSARY TO BRING THE STATEWIDE  GAS
 DISTRIBUTION SYSTEM INTO ALIGNMENT WITH THE STATEWIDE TWO THOUSAND THIR-
 TY  AND  TWO THOUSAND FIFTY GREENHOUSE GAS EMISSION REDUCTION TARGETS IN
 CHAPTER ONE HUNDRED SIX OF THE LAWS OF TWO THOUSAND NINETEEN,  AND  SUCH
 SUCCESSORS  IN  LAW AND FUNCTION AS MAY ARISE FROM TIME TO TIME, AND SET
 INTERIM  EMISSION REDUCTION TARGETS FOR EACH  GAS  UTILITY  AS  WELL  AS
 DEVELOPING A PERIODIC PROCESS TO REVIEW AND UPDATE SUCH TARGETS;
   (G) WITHIN ONE YEAR OF THE EFFECTIVE DATE OF THIS SECTION, THE COMMIS-
 SION  SHALL REVISE ITS RULES AND REGULATIONS FOR CONDUCTING BENEFIT-COST
 ANALYSES SO THAT THE METHODOLOGY AND THE BASE  FINANCIAL  AND  FRAMEWORK
 ASSUMPTIONS  FOR THE ANALYSIS SUPPORT ACHIEVEMENT OF THE CLIMATE JUSTICE
 AND EMISSION REDUCTION MANDATES IN CHAPTER ONE HUNDRED SIX OF  THE  LAWS
 OF TWO THOUSAND NINETEEN, AND SUCH SUCCESSORS IN LAW AND FUNCTION AS MAY
 ARISE  FROM  TIME  TO  TIME.    SUCH REVISIONS SHALL INCLUDE, BUT NOT BE
 LIMITED TO:
   (1) GREENHOUSE GAS EMISSION REDUCTION MANDATES  SHALL  BE  USED  AS  A
 CONSTRAINT  IN  DESIGNING THE SCENARIOS TO BE ANALYZED SUCH THAT ALL THE
 SCENARIOS SHALL  COMPLY  WITH  THE  STATUTORY  GREENHOUSE  GAS  EMISSION
 REQUIREMENTS  AND  ANY INTERIM TARGETS SET BY THE DEPARTMENT OF ENVIRON-
 MENTAL CONSERVATION OR THE COMMISSION  IN ORDER TO INTERNALIZE THE  COST
 OF ACHIEVING SUCH TARGETS IN THE BENEFIT-COST ANALYSIS.
   (2) QUANTIFICATION OF PUBLIC HEALTH IMPACTS FROM IMPROVEMENTS IN AMBI-
 ENT  AND INDOOR AIR QUALITY. WHEN QUANTITATIVE METRICS ARE NOT POSSIBLE,
 QUALITATIVE ANALYSIS SHALL BE INCLUDED.
   (3) CONSIDERATION OF THE SIGNIFICANT UNCERTAINTIES AND  RISKS  ASSOCI-
 ATED  WITH  DIFFERENT  SCENARIOS,  INCLUDING THE ENVIRONMENTAL IMPACT OF
 LEAKED GAS, THE PROLONGED RELIANCE ON THE GAS SYSTEM THAT  RESULTS  FROM
 LONG-LIVED  INVESTMENTS  IN  GAS INFRASTRUCTURE AND GAS-CONSUMING EQUIP-
 MENT, THE POSITIVE OPTION VALUE ASSOCIATED WITH MEASURES THAT CAN ELIMI-
 NATE OR DEFER THE NEED FOR INVESTMENTS IN GAS  INFRASTRUCTURE  AND  GAS-
 CONSUMING  EQUIPMENT,  AND  POTENTIAL  CHALLENGES  ASSOCIATED  WITH FULL
 ELECTRIFICATION.
 A. 4592--A                         14
 
   (4) IN INSTANCES WHERE AN ALTERNATIVE FUEL HAS AN ENVIRONMENTAL ATTRI-
 BUTE, ONLY ATTRIBUTE ALTERNATIVE FUELS WITH EMISSION REDUCTION  BENEFITS
 UNDER  THE  BENEFIT-COST  ANALYSIS  IF  THE ENVIRONMENTAL ATTRIBUTES ARE
 RETAINED BY THE UTILITY FOR THE BENEFIT OF THE UTILITY'S CUSTOMERS OR BY
 THE END-USE CUSTOMER.
   (5)  USE ACCURATE DEPRECIATION SCHEDULES THAT ASSUME THE FULL VALUE OF
 ANY NEW GAS ASSET IS FULLY DEPRECIATED NO LATER THAN TWO THOUSAND FIFTY,
 ABSENT DEMONSTRATION THAT THE SPECIFIC  ASSET  WILL  REMAIN  IN  SERVICE
 BEYOND  TWO  THOUSAND FIFTY, AND EARLIER IF IT IS LIKELY THAT SUCH ASSET
 WILL NEED TO BE PHASED OUT OR RETIRED BEFORE TWO  THOUSAND  FIFTY  GIVEN
 ANY  INTERIM GREENHOUSE GAS EMISSION REDUCTION TARGETS OR GEOGRAPHICALLY
 TARGETED STRATEGIC ASSET RETIREMENT.
   (6) ASSESS DEMOGRAPHIC IMPACTS BY MEASURING WITH  AS  MUCH  GEOGRAPHIC
 GRANULARITY AS POSSIBLE AND CONSIDERING DIFFERENT LEVELS OF EXPOSURE AND
 RISK  FACTORS  FOR  IMPACTS ON DISADVANTAGED COMMUNITIES AND OTHER POPU-
 LATIONS WITH VULNERABILITY TO CHANGES INDUCED BY REGULATION.
   2. NOTHING IN THIS CHAPTER OR ANY OTHER LAW OF NEW YORK STATE SHALL BE
 INTERPRETED OR OTHERWISE CONSTRUED AS  PREEMPTING  A  MUNICIPALITY  FROM
 ADOPTING BUILDING CODES OR OTHER REGULATIONS REGARDING ON-SITE EMISSIONS
 FOR NEW AND EXISTING BUILDINGS WITHIN THEIR LOCALITIES.
   § 15. This act shall take effect immediately.