NY State Senate Bill 2025-S4158

Senate Bill S4158

2025-2026 Legislative Session

Enacts the NY Home Energy Affordable Transition Act; and repeals certain provisions of the public service law relating to gas service and sale

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Current Bill Status - In Senate Committee Energy And Telecommunications Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Feb 03, 2025	referred to energy and telecommunications

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2025-S4158 (ACTIVE) - Details

Current Committee:: Senate Energy And Telecommunications
Law Section:: Public Service Law
Laws Affected:: Amd §§4, 5, 30, 31 & 66, rpld §§66-b & 66-g, add §§66-x, 66-y & 66-z, Pub Serv L; amd §1020-cc, Pub Auth L; amd §12, add §13, Transp Corps L; amd §224-d, Lab L
Versions Introduced in Other Legislative Sessions:: 2021-2022: S8198
2023-2024: S2016

2025-S4158 (ACTIVE) - Summary

Aligns utility regulation with state climate justice and emission reduction targets; provides for a statewide affordable gas transition plan and utility home energy affordable transition programs; repeals provisions relating to continuation of gas service; repeals provisions relating to the sale of indigenous natural gas for generation of electricity.

2025-S4158 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S4158

SPONSOR: KRUEGER
 
TITLE OF BILL:

An act to amend the public service law, the public authorities law, the
transportation corporations law and the labor law, in relation to enact-
ing the NY Home Energy Affordable Transition Act; 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

 
PURPOSE:

The purpose of the bill is to ensure that state regulation and oversight
of gas utilities provides for the equitable achievement of the climate
justice and emission reduction provisions set forth in the Climate Lead-
ership and Community Protection Act (the "CLCPA").  This bill provides
the Public Service Commission with the authority and direction to align
gas utility regulation and gas system planning with the CLCPA's
provisions while ensuring that customers retain access to safe and reli-
able energy. Specifically, the bill removes the legal basis and subsi-
dies driving the expansion of gas systems and requires the commission to

adopt rules to provide for the timely and strategic decarbonization and
right-sizing of the gas distribution system in a just and affordable
manner.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1: Names the bill the NY Home Energy Affordable Transition Act.
Section 2: Legislative findings.

Section 3: Amends the public service law to add a new section 66-y to
require the Public Service Commission to create a Statewide Affordable
Gas Transition Plan to guide an orderly, affordable, and equitable
rightsizing of the utility gas distribution system.  Further amends
public service law to add a new section 66-z to create Utility Home
Energy Affordable Transition (HEAT) Programs to require gas utilities to
implement Neighborhood Gas Transition Projects, in alignment with the
Statewide Gas Transition Plan, for the purpose of decommissioning
discrete segments of the utility gas system to provide for an orderly
gas system transition, including provisions ensuring reliability, safe-
ty, affordability, and continued access to energy services.

Section 4: Amends section 4, subdivision 1, of the public service law.
Provides that the public service commission has "all powers necessary
and proper" to facilitate achievement of the CLCPA climate justice and
emission reduction provisions.

Section 5: Amends subdivision 1 of section 5 of the public service law.
Adds gas and electricity used for cooling to the jurisdiction of the
public service commission.

Section 6: Amends section 30 of the public service law. Requires the
Public Service Commission to develop a plan to ensure that all residen-
tial customers be adequately protected from bearing energy burdens
greater than 6% of their household income. Permits the commission to
establish a reasonable per-customer cap on the amount of energy subject
to affordability protections, as well as a cap on collections from rate-
payers to fund energy affordability programs.  Directs the commission to
regulate for the continued provision of gas service to existing residen-
tial customers unless such service is discontinued pursuant to a Home
Energy Affordable Transition Program.  Clarifies that nothing in this
article or any other law of New York shall be interpreted as preempting
a municipality from adopting building codes or other regulations regard-
ing on-site emissions for new and existing buildings within their local-
ities.

Section 7: Amends section 1020-cc of the public authorities law to codi-
fy a goal that all residential customers of the Long Island Power
Authority be protected from bearing energy burdens greater than 6% of
their household income.

Section 8: Amends section 31, subdivisions 1,3, and 4, of the public
service law. Removes the 100 ft rule subsidy for gas, which provides
ratepayer-funded utility incentives for the expansion of utility gas
system infrastructure. Implements the policy established in section 6
with respect to applications for electric and gas services. Requires
utilities to provide clear, timely information on incentives and oppor-
tunities for installing energy-efficient equipment and other measures
that provide alternatives to gas use. Clarifies that nothing in this
subdivision shall be construed to prohibit existing gas customers from
reconnecting to the gas distribution system following a service inter-
ruption due to emergency repairs.

Sections 9 & 10: Amends section 12 of the transportation corporations
law and adds a new section 13. Removes the entitlement of non-residen-
tial customers to utility gas service and the 100 ft rule subsidy for
gas.

Section 11: Creates a new subdivision 12-e under section 66 of the
public service law. Requires the commission to review each gas utility's
capital construction plan and to establish a process to examine feasible
alternatives to construction of new gas infrastructure and alignment
with the affordable gas transition plan.  Empowers the commission to
require the electric utility with a service area overlapping the service
area of the gas utility to participate in such process.

Section 12: Repeals section 66-b of the public service law. Removes the
entitlement to continuation of gas service following the demolition and
reconstruction of any structure owned by a customer.

Section 13: Adds a new section 66-x to the public service law.  Prohib-
its gas utilities, after December 31st, 2026, from expanding gas
distribution infrastructure to new geographic areas where gas service
was not previously available. Case-by-case exceptions may be granted up
to December 31st, 2028.

Section 14: Repeals section 66-g of the public service law. Removes the
requirement that utilities enter long-term contracts to purchase or
wheel electricity produced from indigenous natural gas supplies when
economically reasonable.

Section 15. Amends section 224-d of the labor law and adds a new subdi-
vision 9. Adds covered neighborhood gas transition projects to the defi-
nition of covered renewable energy systems to ensure that such projects

performed by contractors directly hired by a public utility are subject
to the same labor standards as other covered renewable energy systems.

Section 16. Severability

Section 17. Establishes that the act takes effect immediately.

 
JUSTIFICATION:

New Yorkers are facing rising heating bills, spurred by utility invest-
ments in increasingly expensive gas pipelines, the costs of which are
paid by utility customers as delivery costs on their gas bills. Delivery
costs can be two or three times greater than the cost of gas itself. The
increasing heating bills contribute to an unaffordable cost of living
for too many New Yorkers, leading to high amounts of consumer debt to
utilities, increasing numbers of utility service shutoffs, and hardship
as families struggle to also afford housing, food, medicine and health-
care.

Heating our buildings through burning fossil fuels is the largest source
of greenhouse gas emissions in New York State. The climate crisis
threatens the lives and financial security of New Yorkers, as storms,
wildfires, and extreme heat threaten the health, wellbeing, and property
of residents, leading to high healthcare costs and other financial
damages.

To address these harms, New York urgently needs to align its regulation
and oversight of gas utilities with the climate and equity provisions
established by the Climate Leadership and Community Protection Act
(CLCPA).  The CLCPA sets ambitious targets to achieve significant green-
house gas emission reductions across New York's economy, while prior-
itizing reductions in co-pollutant emissions in disadvantaged communi-
ties and requiring significant state investments to bring the
affordability and health benefits of energy efficiency and clean energy
to these communities.

Achieving New York's climate and equity objectives necessitates updating
the regulation of gas utilities. Current policies.create misalignment
between gas system investments and the CLCPA's 2030 and 2050 mandates,
increasing the risk of a costly and disorderly transition. Strategic
planning and investment are needed to decarbonize buildings, right-size
the gas system, and ensure coordinated enhancements to the electric
system, enabling equitable and affordable access to clean energy
solutions for all New Yorkers.  Outdated public service laws are misa-
ligned with the state's energy affordability goals and CLCPA mandates.
The "utility obligation to serve gas" compels utilities to expand gas
infrastructure, making it challenging to redirect investments toward
insulating and upgrading homes and installing clean energy alternatives
like electrification and thermal energy networks that align with climate
goals while mitigating costs for ratepayers.  Mandated system extension
allowances require existing ratepayers to subsidize gas hookups for new
customers, costing ratepayers hundreds of millions of dollars annually.
Utilities are projected to spend $150 billion to replace leak-prone gas
pipelines. Through the changes implemented in this Act, many of these
investments could be avoided by redirecting funds to neighborhood-scale
decarbonization projects. Neighborhood-scale projects offer the most
cost-effective pathway to transition gas customers to alternative heat-
ing and cooling solutions. These projects reduce costs, minimize strand-
ed investments in the gas system, and enable coordinated efforts among
utilities, customers, and other stakeholders.

The NY HEAT Act seeks to:

a. Reduce unjust and disproportionate energy cost burdens by avoiding
unnecessary, non-strategic, and expensive gas infrastructure invest-
ments, and improving affordability protections.

b. Ensure utility regulations do not work at cross-purposes with the
CLCPA.

c. Provide the Public Service Commission with clear authority and direc-
tion to align utility planning with CLCPA goals, proactively addressing
regulatory barriers and recommending necessary legislative changes.

d. Minimize the need for new gas infrastructure investments by redirect-
ing ratepayer funds to alternatives including electrification, thermal
energy networks, targeted energy efficiency, demand response, and market
transformation measures.

e. Facilitate a planned, neighborhood-scale transition away from fossil
fuels, avoiding stranded gas infrastructure costs and supporting coordi-
nated investments that reduce emissions, increase affordability, and
create good-paying jobs, while covering transition costs of customers
moving to non-gas alternatives.

f. Ensure equitable access to affordable, clean energy for heating,
cooling, and other building needs, protecting customers from undue
burdens during the transition.

The NY HEAT Act does not impose a ban on the use of gas. Rather, it
supports a gradual, long-term, and carefully planned transition for
existing gas customers to cleaner alternatives, ensuring affordability,
reliability, and equity throughout the process.

 
LEGISLATIVE HISTORY:

2021-22: S.8198/A.9329 Fahy - Died in committee

2023-24: S.2016/A.4592 Fahy - Passed Senate

 
FISCAL IMPACT ON THE STATE:

Undetermined.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2025-S4158 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4158
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             February 3, 2025
                                ___________
 
 Introduced  by  Sens.  KRUEGER,  MAY,  FAHY,  ADDABBO,  BRISPORT, BROUK,
   CLEARE, COMRIE,  COONEY,  FERNANDEZ,  GIANARIS,  GONZALEZ,  GOUNARDES,
   HARCKHAM,  HINCHEY,  HOYLMAN-SIGAL,  JACKSON, KAVANAGH, LIU, MARTINEZ,
   MAYER, MYRIE, RAMOS, RIVERA,  SALAZAR,  SANDERS,  SEPULVEDA,  SERRANO,
   STAVISKY,  WEBB -- read twice and ordered printed, and when printed to
   be committed to the Committee on Energy and Telecommunications
 
 AN ACT to amend the public service law, the public authorities law,  the
   transportation  corporations  law  and  the  labor law, in relation to
   enacting the NY Home  Energy  Affordable  Transition  Act;  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" or the "NY HEAT Act".
   § 2. Legislative findings. The legislature finds and declares that:
   1.  The  Climate  Leadership and Community Protection Act (CLCPA) sets
 forth ambitious mandates to achieve  significant  greenhouse  gas  (GHG)
 emission  reductions  across  New  York's  economy,  while  prioritizing
 reductions in co-pollutant emissions in  disadvantaged  communities  and
 requiring  significant  state investments to bring the affordability and
 health benefits of energy efficiency and clean energy to these  communi-
 ties.
   2.  Buildings  are  the  largest  source of GHG emissions in New York,
 contributing approximately one-third of  the  state's  total  emissions.
 They  also  produce  significant local air pollution, leading to adverse
 health outcomes such as asthma and heart disease, especially  in  disad-
 vantaged communities. Reducing emissions and pollution from buildings is
 essential  to meeting the CLCPA's climate and equity goals and improving
 public health.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05559-04-5

 S. 4158                             2
 
   3. Achieving New York's climate  and  equity  objectives  necessitates
 updating  the regulation of gas utilities. Current policies create misa-
 lignment between gas system investments and the CLCPA's  2030  and  2050
 mandates,  increasing  the  risk  of a costly and disorderly transition.
 Strategic  planning  and investment are needed to decarbonize buildings,
 right-size the gas system, and ensure coordinated  enhancements  to  the
 electric system, enabling equitable and affordable access to clean ener-
 gy  solutions for all New Yorkers. Such investments will lead to signif-
 icant benefits: the Climate  Action  Council  found  that  the  cost  of
 inaction  on  climate  exceeds  the  cost  of  action  by more than $115
 billion.
   4. Outdated public service laws are misaligned with the state's energy
 affordability goals and CLCPA mandates in the following ways:
   a. The "utility obligation to serve gas" compels utilities  to  expand
 gas infrastructure, making it challenging to redirect investments toward
 insulating  and upgrading homes and installing clean energy alternatives
 like electrification and thermal energy networks that align with climate
 goals while mitigating costs for ratepayers.
   b. Mandated system extension allowances require existing ratepayers to
 subsidize gas hookups for new customers, costing ratepayers hundreds  of
 millions of dollars annually.
   c. Utilities are projected to spend $150 billion to replace leak-prone
 gas  pipelines.  Through  the  changes  implemented in this act, many of
 these investments could be avoided by  redirecting  funds  to  neighbor-
 hood-scale  decarbonization  projects. Neighborhood-scale projects offer
 the most cost-effective pathway to transition gas customers to  alterna-
 tive  heating  and cooling solutions. These projects reduce costs, mini-
 mize stranded investments in the  gas  system,  and  enable  coordinated
 efforts among utilities, customers, and other stakeholders.
   5.  This  legislation,  the  NY  Home Energy Affordable Transition (NY
 HEAT) Act, seeks to:
   a. Reduce unjust and disproportionate energy cost burdens by  avoiding
 unnecessary,  non-strategic,  and  expensive  gas infrastructure invest-
 ments, and improving affordability protections.
   b. Ensure utility regulations do not work at cross-purposes  with  the
 CLCPA.
   c.  Provide  the  Public  Service  Commission with clear authority and
 direction to  align  utility  planning  with  CLCPA  goals,  proactively
 addressing  regulatory  barriers  and recommending necessary legislative
 changes.
   d. Minimize the need for new gas infrastructure investments  by  redi-
 recting ratepayer funds to alternatives including electrification, ther-
 mal  energy  networks,  targeted energy efficiency, demand response, and
 market transformation measures.
   e. Facilitate  a  planned,  neighborhood-scale  transition  away  from
 fossil  fuels, avoiding stranded gas infrastructure costs and supporting
 coordinated investments that reduce emissions,  increase  affordability,
 and create good paying jobs.
   f.  Ensure  equitable  access to affordable, clean energy for heating,
 cooling, and other  building  needs,  protecting  customers  from  undue
 burdens during the transition.
   6. This legislation does not impose a ban on the use of gas. It is the
 intent  of  the  Legislature  to support a gradual and carefully planned
 transition for existing gas customers to cleaner alternatives,  ensuring
 affordability, reliability, and equity throughout the process.
 S. 4158                             3
 
   § 3. The public service law is amended by adding two new sections 66-y
 and 66-z to read as follows:
   §  66-Y.  STATEWIDE  AFFORDABLE GAS TRANSITION PLAN.  1. NO LATER THAN
 TWO YEARS AFTER THE EFFECTIVE DATE OF THIS SECTION, THE COMMISSION SHALL
 PUBLISH A STATEWIDE AFFORDABLE GAS TRANSITION PLAN TO GUIDE AN  ORDERLY,
 AFFORDABLE,  AND  EQUITABLE  RIGHT-SIZING OF THE UTILITY GAS SYSTEM IN A
 MANNER THAT ALIGNS  WITH,  AND  SUPPORTS  ACHIEVEMENT  OF,  THE  CLIMATE
 JUSTICE AND EMISSIONS REDUCTION PROVISIONS 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, INCORPORATING IN SUCH PLAN  PRUDENT
 INVESTMENTS  AND  STRATEGIC  OPPORTUNITIES TO GENERATE COST EFFICIENCIES
 FOR ALL GAS AND ELECTRIC CUSTOMERS AND REDIRECT RESOURCES TOWARD ASSIST-
 ING CUSTOMERS TO UPGRADE THEIR HOMES AND ENERGY  APPLIANCES.  SUCH  PLAN
 SHALL INCLUDE, AT A MINIMUM:
   (A) TARGETS FOR THE TRANSITION OF GAS SYSTEM INFRASTRUCTURE AND RECOM-
 MENDATIONS  FOR  PLANNING  AND INVESTMENT STRATEGIES FOR THE STATE'S GAS
 CORPORATIONS TO ACHIEVE SUCH TARGETS.
   (B) GENERAL REQUIREMENTS FOR UTILITY HOME ENERGY AFFORDABLE TRANSITION
 PROGRAMS PURSUANT TO SECTION  SIXTY-SIX-Z  OF  THIS  ARTICLE,  REGARDING
 CRITERIA  FOR  APPROVAL OF SUCH PROGRAMS AND NEIGHBORHOOD GAS TRANSITION
 PROJECTS IMPLEMENTED AS PART OF SUCH PROGRAMS, INCLUDING REQUIREMENTS:
   (I) TO ENSURE CUSTOMERS AFFECTED  BY  A  NEIGHBORHOOD  GAS  TRANSITION
 PROJECT  HAVE  CONTINUED ACCESS TO SAFE AND RELIABLE ENERGY SERVICES FOR
 HEATING, COOLING, COOKING, AND WATER HEATING;
   (II) FOR UTILITIES TO NOTIFY CUSTOMERS AFFECTED BY A NEIGHBORHOOD  GAS
 TRANSITION PROJECT IN A TIMELY MANNER;
   (III)  TO  ENSURE THE ABILITY OF THE ELECTRICAL GRID TO SAFELY SUPPORT
 ANY NEW ELECTRIC LOAD CREATED BY A  HOME  ENERGY  AFFORDABLE  TRANSITION
 PROGRAM,  INCLUDING FOR UTILITY PARTICIPATION IN ANY COORDINATION ACTIV-
 ITIES REGARDING GRID PLANNING; AND
   (IV) TO PRIORITIZE VOLUNTARY DISCONNECTIONS FROM GAS SERVICE, TO MINI-
 MIZE THE COST OF TRANSITION FOR EXISTING GAS AND ELECTRIC CUSTOMERS, AND
 TO ENCOURAGE UTILIZATION OF EXISTING RESOURCES FOR WEATHERIZATION, ENER-
 GY EFFICIENCY, AND ELECTRIFICATION PROGRAMS AVAILABLE IN THE STATE.
   (C) IN COLLABORATION WITH THE STATE'S GAS AND  ELECTRIC  CORPORATIONS,
 IDENTIFICATION  OF  A  PRELIMINARY  LIST  OF NEIGHBORHOOD GAS TRANSITION
 PROJECTS BEST SUITED FOR  HOME  ENERGY  AFFORDABLE  TRANSITION  PROGRAMS
 PURSUANT TO SECTION SIXTY-SIX-Z OF THIS ARTICLE.
   (D) A REVIEW OF THE PUBLIC SERVICE LAW AND ITS CURRENT RULES AND POLI-
 CY  GUIDANCE  TO IDENTIFY ANY LAW, RULE, GUIDANCE, OR LACK THEREOF, THAT
 MAY INHIBIT TIMELY AND EQUITABLE ACHIEVEMENT OF THE CLIMATE JUSTICE  AND
 EMISSION  REDUCTION PROVISIONS 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.
   2.  IN  DEVELOPING  AN AFFORDABLE GAS TRANSITION PLAN PURSUANT TO THIS
 SECTION, THE DEPARTMENT SHALL HOLD NO FEWER THAN FOUR PUBLIC HEARINGS IN
 DIFFERENT REGIONS OF THE STATE.
   3. UPON COMPLETION, THE STATEWIDE AFFORDABLE GAS TRANSITION PLAN SHALL
 BE MADE AVAILABLE ON THE DEPARTMENT'S WEBSITE AND SHALL BE DELIVERED  TO
 THE  GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE, AND THE SPEAKER OF
 THE ASSEMBLY.
   § 66-Z. UTILITY HOME ENERGY AFFORDABLE  TRANSITION  PROGRAMS.  1.  THE
 COMMISSION SHALL, FOR EACH GAS CORPORATION IN THIS STATE, ISSUE AN ORDER
 TO  DEVELOP  HOME ENERGY AFFORDABLE TRANSITION PROGRAMS PURSUANT TO THIS
 SECTION, AND IN ACCORDANCE WITH THE STATEWIDE AFFORDABLE GAS  TRANSITION
 PLAN  IN  SECTION SIXTY-SIX-Y OF THIS ARTICLE, AND SHALL REQUIRE PARTIC-
 S. 4158                             4
 
 IPATION OF SUCH GAS CORPORATION AS NECESSARY  FOR  IMPLEMENTATION.  SUCH
 PROGRAMS  SHALL  REQUIRE  IMPLEMENTATION  OF NEIGHBORHOOD GAS TRANSITION
 PROJECTS FOR THE PURPOSE OF DECOMMISSIONING  DISCRETE  SEGMENTS  OF  THE
 UTILITY GAS SYSTEM IN ORDER TO PROVIDE FOR AN ORDERLY GAS SYSTEM TRANSI-
 TION  TO  ACHIEVE  CONSISTENCY  WITH  THE  CLIMATE  JUSTICE AND EMISSION
 REDUCTION PROVISIONS 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.  DEVELOPMENT  AND  APPROVAL  OF  SUCH  PROGRAMS  SHALL  BE
 COMPLETED  NO  LATER  THAN  ONE  YEAR AFTER THE STATEWIDE AFFORDABLE GAS
 TRANSITION PLAN HAS BEEN PUBLISHED.
   2. PRIOR TO JANUARY FIRST, TWO THOUSAND THIRTY, NO  EXISTING  RESIDEN-
 TIAL  GAS CUSTOMER, AS SUCH TERM IS REFERENCED IN SECTION THIRTY OF THIS
 CHAPTER, SHALL HAVE THEIR GAS SERVICE DISCONTINUED AS PART OF  A  NEIGH-
 BORHOOD  GAS  TRANSITION  PROJECT  IMPLEMENTED  PURSUANT TO THIS SECTION
 EXCEPT BY CONSENT OF SUCH CUSTOMER.
   3. PROGRAMS SHALL BE  DESIGNED  TO  MAXIMIZE  COST  EFFICIENCIES  FROM
 AVOIDED  INVESTMENTS IN THE EXPANSION AND MAINTENANCE OF THE GAS SYSTEM,
 AND REDIRECT RESOURCES TOWARD IMPLEMENTATION OF NEIGHBORHOOD GAS TRANSI-
 TION PROJECTS, INCLUDING ASSISTING CUSTOMERS TO UPGRADE THEIR HOMES  AND
 ENERGY  APPLIANCES,  INCLUDING THOSE USED FOR HEATING, COOLING, COOKING,
 AND WATER HEATING, IN ADDITION TO UTILIZING STATE AND FEDERAL  APPLIANCE
 AND EFFICIENCY INCENTIVE PROGRAMS AND OTHER AVAILABLE FUNDING STREAMS.
   4.  THE  COMMISSION  SHALL  ONLY APPROVE PROGRAMS THAT ENSURE THAT ALL
 AFFECTED RESIDENTIAL CUSTOMERS WILL:
   (A) HAVE CONTINUED ACCESS TO SAFE AND  RELIABLE  ENERGY  SERVICES  FOR
 HEATING, COOLING, COOKING, AND WATER HEATING;
   (B)  HAVE ACCESS TO FUNDING AND TECHNICAL SUPPORT FOR THE PURCHASE AND
 INSTALLATION OF CUSTOMER-OWNED EQUIPMENT AT LOW OR NO COST, AS  WELL  AS
 FOR  THE  PURPOSES  OF  IDENTIFYING,  PLANNING, AND SECURING SERVICES TO
 UNDERTAKE WEATHERIZATION AND ENERGY EFFICIENCY MEASURES,  AND  PRE-ELEC-
 TRIFICATION UPGRADES, USING ANY RESOURCES AVAILABLE FOR SUCH PURPOSES;
   (C)  BE GIVEN NOTICE AT LEAST TWO YEARS IN ADVANCE OF THE CESSATION OF
 GAS SERVICE, AND AT LEAST EVERY SIX MONTHS SUBSEQUENTLY, VIA  MAIL  AND,
 WHEN  APPLICABLE,  ELECTRONICALLY, AND, WHERE FEASIBLE, THROUGH AT LEAST
 ONE IN-PERSON CONTACT, AND BE PROVIDED  NOTIFICATION  OF  FINANCIAL  AND
 TECHNICAL  ASSISTANCE  AVAILABLE  TO  SUCH CUSTOMERS FROM THE UTILITY OR
 OTHER STATE OR FEDERAL PROGRAMS TO SUPPORT ELECTRIFICATION;
   (D) HAVE AN OPPORTUNITY TO COMMENT ON THE  PROPOSED  NEIGHBORHOOD  GAS
 TRANSITION PROJECT BEFORE IT IS FINALIZED; AND
   (E)  BE  PROVIDED  NOTICE WHEN AN ADJACENT CUSTOMER CONNECTED TO THEIR
 LOCAL GAS GRID HAS VOLUNTARILY OPTED TO DISCONTINUE  SERVICE,  VIA  MAIL
 AND, WHEN APPLICABLE, ELECTRONICALLY.
   5. THE COMMISSION SHALL REQUIRE EACH GAS CORPORATION TO REEVALUATE ITS
 EXISTING  PLANS, POLICIES, AND PROGRAMS RELATED TO PROACTIVE REPLACEMENT
 OF GAS SYSTEM INFRASTRUCTURE BASED ON ANALYSES OF DISCRETE  SEGMENTS  OF
 THE GAS SYSTEM THAT ARE MOST SUITABLE TO BE PRIORITIZED FOR NEIGHBORHOOD
 GAS TRANSITION PROJECTS.
   6.  THE  COMMISSION SHALL ENSURE THAT ANY PROGRAM APPROVED PURSUANT TO
 THIS SECTION WILL NOT COMPROMISE THE SAFETY AND RELIABILITY OF THE ELEC-
 TRIC DISTRIBUTION GRID OR GAS DISTRIBUTION SYSTEM, OR RESULT  IN  UNREA-
 SONABLE  DISRUPTION  OF SERVICE TO BUILDINGS THAT ARE USED FOR AN INDUS-
 TRIAL  OR  COMMERCIAL  USE  THAT  IS  DIFFICULT   TO   ELECTRIFY   USING
 COMMERCIALLY  AVAILABLE TECHNOLOGY OR THAT HOUSE AN ENERGY INTENSIVE AND
 TRADE EXPOSED INDUSTRY, OR TO CRITICAL INFRASTRUCTURE AS SUCH TERMS  ARE
 DEFINED BY THE COMMISSION.
 S. 4158                             5

   7. PROGRAMS APPROVED PURSUANT TO THIS SECTION SHALL NOT COMPROMISE THE
 ABILITY  OF A GAS CORPORATION TO SEEK TO RECOVER PRUDENT, COMMISSION-AP-
 PROVED INVESTMENTS IN INFRASTRUCTURE THAT WAS USED AND USEFUL.
   8.  PRIOR TO APPROVAL, THE COMMISSION SHALL CONSIDER WHETHER A PROGRAM
 IS ADEQUATELY DESIGNED  TO  MITIGATE  POTENTIAL  FINANCIAL  HARDSHIP  TO
 AFFECTED  RESIDENTIAL  CUSTOMERS  IN  CONNECTION WITH THE REPLACEMENT OF
 GAS-FIRED APPLIANCES AS PART OF  NEIGHBORHOOD  GAS  TRANSITION  PROJECTS
 IMPLEMENTED PURSUANT TO THE PROGRAM.
   §  4. 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 PROVISIONS 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] THE COMMISSION-
 ER'S 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,  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.
   § 5. Paragraph b of subdivision 1 of section 5 of the  public  service
 law,  as  amended by chapter 155 of the laws of 1970, is amended to read
 as follows:
   b. 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.
   §  6.  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  GOALS,  and  is  in  the  public
 interest.    IT  IS  FURTHER  THE POLICY OF THIS STATE THAT ELECTRIC AND
 STEAM SERVICES TO ALL RESIDENTIAL CUSTOMERS, AND GAS SERVICE FOR  EXIST-
 ING  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, AFFORDABLE
 AND EQUITABLE RIGHT-SIZING OF THE UTILITY GAS SYSTEM TO ACHIEVE CONSIST-
 ENCY WITH THE CLIMATE JUSTICE AND EMISSION REDUCTION PROVISIONS IN CHAP-
 TER ONE HUNDRED SIX OF THE LAWS  OF  TWO  THOUSAND  NINETEEN,  AND  SUCH
 SUCCESSORS IN LAW AND FUNCTION AS MAY ARISE FROM TIME TO TIME, ENCOURAG-
 S. 4158                             6
 
 ING  NEIGHBORHOOD-SCALE  TRANSITIONS  AND  THE  ELIMINATION  OF  ON-SITE
 CO-POLLUTANTS.
   2.  (A)  THE  COMMISSION SHALL REGULATE FOR THE CONTINUED PROVISION OF
 GAS SERVICE TO ALL  EXISTING  RESIDENTIAL  GAS  CUSTOMERS,  UNLESS  SUCH
 SERVICE  IS DISCONTINUED PURSUANT TO A HOME ENERGY AFFORDABLE TRANSITION
 PROGRAM APPROVED BY THE COMMISSION PURSUANT TO  SECTION  SIXTY-SIX-Z  OF
 THIS CHAPTER.
   (B) FOR THE PURPOSES OF THIS SECTION, ANY NEW RESIDENTIAL GAS CUSTOMER
 PURCHASING  OR  RENTING  OR  MOVING  INTO  A  BUILDING WITH EXISTING GAS
 SERVICE, OR IN WHICH GAS SERVICE WAS TEMPORARILY INTERRUPTED, AS DEFINED
 BY THE COMMISSION, INCLUDING  TEMPORARY  INTERRUPTION  FOR  EMERGENCIES,
 DISASTERS,  MAINTENANCE,  REPAIRS,  RENOVATION, OR RESTORATION, SHALL BE
 TREATED AS AN EXISTING CUSTOMER UNLESS AND UNTIL SUCH SERVICE IS DISCON-
 TINUED PURSUANT TO A HOME ENERGY AFFORDABLE TRANSITION PROGRAM  APPROVED
 BY THE COMMISSION.
   3.  (A) WITHIN ONE YEAR OF THE EFFECTIVE DATE OF THIS SUBDIVISION, THE
 COMMISSION SHALL DEVELOP A PLAN TO ENSURE THAT ALL RESIDENTIAL CUSTOMERS
 BE ADEQUATELY PROTECTED FROM BEARING AN ENERGY BURDEN GREATER  THAN  SIX
 PERCENT OF THEIR HOUSEHOLD INCOME.  IN DEVELOPING SUCH PLAN, THE COMMIS-
 SION  SHALL  EVALUATE AVAILABLE TOOLS, INCLUDING BUT NOT LIMITED TO BILL
 DISCOUNTS, BILL CREDITS, REDIRECTION OF AVOIDED COSTS OF UTILITY INFRAS-
 TRUCTURE, RATE MAKING STRATEGIES, ENERGY EFFICIENCY, DISTRIBUTED RENEWA-
 BLE ENERGY, AND POTENTIAL BUDGETARY MEASURES, PRIORITIZING MITIGATION OF
 RATE INCREASES ON RESIDENTIAL CUSTOMERS. BEGINNING IN THE CALENDAR  YEAR
 FOLLOWING THE EFFECTIVE DATE OF THIS SUBDIVISION, AND CONTINUING ANNUAL-
 LY ON OR BEFORE OCTOBER FIRST, THE COMMISSION SHALL REPORT TO THE GOVER-
 NOR AND LEGISLATURE ON THE ACTIONS IT HAS TAKEN AND PROGRESS IT HAS MADE
 TOWARD IMPLEMENTING THE PLAN DEVELOPED PURSUANT TO THIS PARAGRAPH.  SUCH
 REPORT SHALL INCLUDE BUT NOT BE LIMITED TO RECOMMENDATIONS REGARDING ANY
 ADDITIONAL  LEGISLATIVE  OR BUDGETARY MEASURES NECESSARY TO ACHIEVE SUCH
 GOAL. THE ANNUAL REPORT SHALL ALSO  BE  PUBLISHED  ON  THE  COMMISSION'S
 WEBSITE.  IN IMPLEMENTING THE PLAN DEVELOPED PURSUANT TO THIS PARAGRAPH,
 THE COMMISSION SHALL PRIORITIZE  LOW-TO-MODERATE  INCOME  CUSTOMERS,  AS
 DEFINED  BY THE COMMISSION, INCLUDING THOSE WHO ARE ALREADY ELIGIBLE FOR
 THE COMMISSION'S ENERGY AFFORDABILITY PROGRAM.
   (B) IN ORDER TO ENSURE THAT ALL RESIDENTIAL  CUSTOMERS  BE  ADEQUATELY
 PROTECTED  FROM  BEARING  AN  ENERGY  BURDEN GREATER THAN SIX PERCENT OF
 THEIR HOUSEHOLD INCOME, THE COMMISSION MAY AUTHORIZE THE USE OF  REASON-
 ABLE  PER-CUSTOMER  CAPS  ON  THE  AMOUNT  OF  ENERGY  SUBJECT  TO  SUCH
 PROTECTIONS. THE COMMISSION MAY  ALSO  ESTABLISH  A  REASONABLE  CAP  ON
 COLLECTIONS FROM RATEPAYERS TO FUND THE COMMISSION'S ENERGY AFFORDABILI-
 TY  PROGRAM  OR SIMILAR SUCCESSOR PROGRAMS PROVIDED SUCH CAP IS NOT LESS
 THAN THREE PERCENT OF TOTAL ELECTRIC OR GAS REVENUES FOR SALES  TO  END-
 USE CUSTOMERS FOR EACH UTILITY.
   4. NOTHING IN THIS ARTICLE 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.
   § 7. 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
 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
 S. 4158                             7
 
 hundred seventeen and one hundred eighteen of the public service law and
 section  one  hundred thirty-one-s of the social services law.  IT SHALL
 BE A GOAL OF THE AUTHORITY THAT ALL RESIDENTIAL CUSTOMERS BE  ADEQUATELY
 PROTECTED  FROM  BEARING  AN  ENERGY  BURDEN GREATER THAN SIX PERCENT OF
 THEIR HOUSEHOLD INCOME PURSUANT TO SUBDIVISION THREE OF  SECTION  THIRTY
 OF  THE  PUBLIC  SERVICE  LAW. The authority shall conform to any safety
 standards regarding manual lockable disconnect switches for solar  elec-
 tric  generating  equipment established by the public service commission
 pursuant 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.
   §  8. 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  and  a  new
 subdivision 4-a is added 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 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 COOL-
 ING  TECHNOLOGIES,  WEATHERIZATION, DEMAND-SIDE MANAGEMENT, AND DISTRIB-
 UTED 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, FOUR-A  and  five
 of  this section, AND IN ACCORDANCE WITH SECTION THIRTY OF THIS ARTICLE,
 S. 4158                             8
 
 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 EXCEPT FOR THE PURPOSES OF SECTION THIRTY OF THIS ARTICLE, with
 any deferred payment agreement honored, and  with  all  rights  of  such
 customer  and  such  utility  corporation provided by this article unim-
 paired.
   4. In the case of any application for ELECTRIC service to  a  building
 which  is  not supplied with electricity [or gas], a utility corporation
 or municipality shall be obligated to provide ELECTRIC service to such a
 building, 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 mate-
 rial and installation costs relating to the  applicant's  proportion  of
 the pipe, conduit, duct or wire, or other facilities to be installed.
   4-A.  IN  THE  CASE  OF  ANY APPLICATION FOR GAS SERVICE TO A BUILDING
 WHICH IS NOT SUPPLIED WITH GAS, A UTILITY  CORPORATION  OR  MUNICIPALITY
 SHALL BE OBLIGATED TO PROVIDE GAS SERVICE TO SUCH BUILDING IN ACCORDANCE
 WITH  COMMISSION REGULATION, PROVIDED HOWEVER, THAT THE COMMISSION SHALL
 REQUIRE APPLICANTS FOR GAS SERVICE TO SUCH BUILDING TO PAY OR  AGREE  IN
 WRITING  TO  PAY MATERIAL AND INSTALLATION COSTS RELATING TO THE PIPE OR
 OTHER FACILITIES TO BE INSTALLED TO ENABLE SERVICE TO THE APPLICANT.
   § 9. 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] ELECTRICITY must be supplied  on  applica-
 tion.  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 occupant 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]  electricity  as  may  be required for [lighting] such
 building, 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] THE FORMER OCCUPANT 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  application,  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 present 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 propor-
 tion] THE APPLICANT'S  PORTION  of  the  pipe,  conduit,  duct  or  wire
 required  to  be  installed, and the expense of the installation of such
 portion.
 S. 4158                             9
 
   § 10. The transportation corporations law is amended by adding  a  new
 section 13 to read as follows:
   §  13.  GAS MUST BE SUPPLIED IN ACCORDANCE WITH PUBLIC SERVICE COMMIS-
 SION 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 OCCUPANT  OF  ANY
 BUILDING WITHIN ONE HUNDRED FEET OF ANY MAIN OF A GAS CORPORATION OR GAS
 AND  ELECTRIC  CORPORATION  APPROPRIATE  TO  THE  SERVICE REQUESTED, AND
 PAYMENT BY THE APPLICANT OF ALL MONEY DUE  FROM  THE  APPLICANT  TO  THE
 CORPORATION,  IT  SHALL  SUPPLY GAS FOR SUCH BUILDING IN ACCORDANCE WITH
 PUBLIC SERVICE COMMISSION REGULATIONS, NOTWITHSTANDING THERE BE RENT  OR
 COMPENSATION IN ARREARS FOR GAS SUPPLIED, OR FOR METER, 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  THE  FORMER  OCCUPANT  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  APPLICATION,  AND THE DEPOSIT OF A REASONABLE SUM, IF
 REQUIRED, THE CORPORATION SHALL REFUSE  OR  NEGLECT  TO  SUPPLY  GAS  AS
 REQUIRED  PURSUANT  TO  PUBLIC SERVICE COMMISSION RULES AND REGULATIONS,
 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 FOR THE PURPOSE
 OF SUPPLYING GAS TO ANY APPLICANT WHERE THE GROUND IN WHICH  SUCH  PIPES
 ARE  REQUIRED  TO  BE  LAID  SHALL BE FROZEN, OR SHALL OTHERWISE PRESENT
 SERIOUS OBSTACLES TO LAYING THE SAME; NOR  UNLESS  THE  APPLICANT  SHALL
 DEPOSIT IN ADVANCE WITH THE CORPORATION A SUM OF MONEY SUFFICIENT TO PAY
 THE MATERIAL AND INSTALLATION COSTS RELATING TO THE PIPE OR OTHER FACIL-
 ITIES TO BE INSTALLED TO ENABLE SERVICE TO THE APPLICANT.
   §  11. Section 66 of the public service law is amended by adding a new
 subdivision 12-e to read as follows:
   12-E. THE COMMISSION SHALL REVIEW THE  CAPITAL  CONSTRUCTION  PLAN  OF
 EACH  GAS  CORPORATION  AND  ESTABLISH A PROCESS TO EXAMINE THE FEASIBLE
 ALTERNATIVES TO SUCH CONSTRUCTION IN ORDER TO ACHIEVE  CONSISTENCY  WITH
 THE  CLIMATE  JUSTICE  AND  EMISSION REDUCTION PROVISIONS 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 TO ALIGN  WITH  THE
 STATEWIDE AFFORDABLE GAS TRANSITION PLAN PURSUANT TO SECTION SIXTY-SIX-Y
 OF  THIS ARTICLE. THE COMMISSION MAY REQUIRE PARTICIPATION IN SUCH PROC-
 ESS 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.
   § 12. Section 66-b of the public service law is REPEALED.
   § 13. The public service law is amended by adding a new  section  66-x
 to read as follows:
   §  66-X.    EXPANSION  OF  GAS  COMPANY SERVICE TERRITORIES. EXCEPT AS
 PROVIDED IN THIS SECTION, AND NOTWITHSTANDING  ANY  OTHER  PROVISION  OF
 THIS  CHAPTER, AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY-SIX, THE
 COMMISSION SHALL NOT GRANT AN AMENDMENT OF A GAS  COMPANY'S  CERTIFICATE
 OF PUBLIC CONVENIENCE AND NECESSITY THAT EXPANDS A GAS COMPANY'S SERVICE
 TERRITORY  IN  ORDER  TO  EXTEND  GAS  PLANT AND THE AVAILABILITY OF GAS
 SERVICE INTO GEOGRAPHIC AREAS WHERE GAS SERVICE WAS NOT AVAILABLE  PRIOR
 S. 4158                            10
 
 TO  SUCH DATE. THE COMMISSION MAY AUTHORIZE EXCEPTIONS TO THE POLICY SET
 FORTH IN THIS SECTION ON A CASE-BY-CASE BASIS, PROVIDED THAT THE COMMIS-
 SION FINDS THAT THE AMENDMENT OF THE CERTIFICATE OF  PUBLIC  CONVENIENCE
 AND  NECESSITY  IS  LIMITED  TO A PROJECT THAT SERVES A COMPELLING STATE
 INTEREST, ALTERNATIVES TO GAS SERVICE ARE EITHER NOT TECHNICALLY  FEASI-
 BLE  OR  PROHIBITIVELY EXPENSIVE, AND THAT THE PROJECT WILL BE COMPLETED
 AND PUT INTO SERVICE NOT LATER THAN DECEMBER THIRTY-FIRST, TWO  THOUSAND
 TWENTY-EIGHT.
   § 14. Section 66-g of the public service law is REPEALED.
   §  15.  Subdivision 1 of section 224-d of the labor law, as amended by
 section 31 of part O of chapter 58 of the laws of 2024, is amended and a
 new subdivision 9 is added to read as follows:
   1. For purposes of this section, a "covered renewable  energy  system"
 means  (a) a renewable energy system, as such term is defined in section
 sixty-six-p of the public service law, with a capacity of  one  or  more
 megawatts  alternating  current  and  which  involves the procurement of
 renewable energy credits by a public entity, or a company or corporation
 provided in subdivisions twenty-three and twenty-four of section two  of
 the  public  service  law, or a third party acting on behalf and for the
 benefit of a public entity; (b) any "thermal energy network" as  defined
 by subdivision twenty-nine of section two of the public service law; (c)
 any  offshore  wind  supply  chain project, including but not limited to
 port infrastructure, primary component manufacturing, finished component
 manufacturing, subassembly manufacturing, subcomponent manufacturing, or
 raw material producers, or a combination thereof receiving direct  fund-
 ing  from  the  New York state energy research and development authority
 pursuant to an award under a New York state energy research and develop-
 ment authority solicitation; [or]  (d)  a  "major  utility  transmission
 facility"  as  such term is defined by section one hundred twenty of the
 public service law; OR  (E)  ANY  COVERED  NEIGHBORHOOD  GAS  TRANSITION
 PROJECT, AS DEFINED BY SUBDIVISION NINE OF THIS SECTION.
   9.  FOR  PURPOSES OF THIS SECTION, A "COVERED NEIGHBORHOOD GAS TRANSI-
 TION PROJECT" SHALL MEAN A PROJECT PERFORMED BY CONTRACTORS  OR  SUBCON-
 TRACTORS  HIRED  DIRECTLY  BY  A  PUBLIC  UTILITY COMPANY, AS DEFINED BY
 SUBDIVISION TWENTY-THREE OF SECTION TWO OF THE PUBLIC  SERVICE  LAW,  TO
 ENSURE  THAT CUSTOMERS PERMANENTLY TRANSITIONING OFF UTILITY GAS SERVICE
 AS PART OF A HOME  ENERGY  AFFORDABLE  TRANSITION  PROGRAM  PURSUANT  TO
 SECTION  SIXTY-SIX-Z  OF THE PUBLIC SERVICE LAW HAVE CONTINUED ACCESS TO
 SAFE AND RELIABLE ENERGY SERVICES FOR  HEATING,  COOLING,  COOKING,  AND
 WATER  HEATING.  A COVERED NEIGHBORHOOD GAS TRANSITION PROJECT SHALL NOT
 INCLUDE A PROJECT PERFORMED UNDER PRIVATE CONTRACT WITH AN ENTITY  OTHER
 THAN  A  PUBLIC  UTILITY  COMPANY,  EVEN  IF  SUCH  ENTITY OR CONTRACTOR
 RECEIVES FINANCIAL AND/OR TECHNICAL SUPPORT FROM A PUBLIC UTILITY COMPA-
 NY, INCLUDING FOR THE PURCHASE AND INSTALLATION OF CUSTOMER-OWNED EQUIP-
 MENT.
   § 16. Severability. If any word, phrase, clause, sentence,  paragraph,
 section, or part of this act shall be adjudged by any court of competent
 jurisdiction  to  be invalid, such judgment shall not affect, impair, or
 invalidate the remainder thereof, but shall be confined in its operation
 to the word, phrase, clause, sentence, paragraph, section, or part ther-
 eof directly involved in the controversy in which  such  judgment  shall
 have been rendered. It is hereby declared to be the intent of the legis-
 lature  that  this  act  would  have  been  enacted even if such invalid
 provisions had not been included herein.
   § 17. This act shall take effect immediately.

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