S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7135
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                               April 1, 2025
                                ___________
 
 Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
   printed to be committed to the Committee on  Energy  and  Telecommuni-
   cations
 
 AN  ACT  to  amend  the public service law, in relation to requiring the
   establishment of hybrid heating pilot programs

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Legislative findings and intent. The legislature finds and
 declares that:
   1.  the  climate  leadership  and  community  protection  act  (CLCPA)
 requires significant reductions in greenhouse gas emissions, including a
 40%  reduction  in statewide greenhouse gas emissions by 2030 and an 85%
 reduction in statewide greenhouse gas emissions by 2050;
   2. as of 2019, the buildings sector represented the largest source  of
 statewide  greenhouse gas emissions and the decarbonization of buildings
 is necessary to achieve the goals of the CLCPA;
   3. the climate action council's final scoping plan recommends  consid-
 eration of hybrid heating solutions for customer space heating needs;
   4.  hybrid  heating systems have the potential to be a key contributor
 to meeting the CLCPA's greenhouse gas emissions  reduction  goals  while
 maintaining safe and reliable space heating, providing affordable system
 alternatives for customers, and avoiding potential costs associated with
 building  out  the  electrical grid to meet expanded electrical require-
 ments during a winter peak hour;
   5. this is especially the case in the colder  regions  of  the  state,
 where  hybrid  heating  systems  can  ensure  continued reliable service
 through a resilient energy delivery system during extreme and potential-
 ly dangerous weather conditions;
   6. the installation of  hybrid  heating  systems  can  promote  strong
 economic  development and good jobs for local residents, including resi-
 dents in disadvantaged communities;

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11290-01-5
              

 S. 7135                             2
 
   7. hybrid heating systems have the  potential  to  provide  meaningful
 benefits to low- to moderate-income residents and residents in disadvan-
 taged communities;
   8.  hybrid  heating systems have upfront installation costs and utili-
 ties' access to capital and experience positions them  well  to  develop
 and implement programs to install hybrid heating systems;
   9.  hybrid  heating pilot programs will allow the state's utilities to
 develop statistically significant findings that will include but not  be
 limited  to  potential  impacts  to  the gas distribution system such as
 enhanced reliability and  reduced  upstream  capacity  needs,  emissions
 reductions,  cost effectiveness of heating system types, and feasibility
 of implementing different system configurations; and
   10. therefore, it is the intent of  the  legislature  to  require  the
 public service commission to immediately commence the piloting of hybrid
 heating pilot programs to further the goals of the CLCPA.
   § 2. The public service law is amended by adding a new section 66-x to
 read as follows:
   § 66-X. HYBRID HEATING PILOT PROGRAM. 1. AS USED IN THIS SECTION:
   (A)  "AIR  SOURCE  HEAT  PUMP" MEANS A HEATING AND COOLING SYSTEM THAT
 UTILIZES OUTSIDE AIR TO EITHER  ABSORB  HEAT  OR  COOL  IT  TO  THEN  BE
 UTILIZED BY A BUILDING VIA A VAPOR-COMPRESSION REFRIGERATION CYCLE;
   (B)  "COLD  CLIMATE  AIR SOURCE HEAT PUMP" MEANS A HEATING AND COOLING
 SYSTEM THAT USES OUTSIDE AIR TO HEAT OR COOL A  BUILDING  AND  WORKS  IN
 SUB-ZERO TEMPERATURES;
   (C)  "GAS  HEATING  SYSTEM"  MEANS  A FURNACE OR BOILER HEATING SYSTEM
 UTILIZING INDIVIDUAL OR A MIXTURE OF TRADITIONAL NATURAL GAS,  RENEWABLE
 NATURAL GAS, OR HYDROGEN TO MEET A CUSTOMER'S HEATING NEEDS;
   (D)  "HYBRID HEATING PILOT PROGRAM" MEANS A PILOT PROGRAM DEVELOPED BY
 A GAS CORPORATION OR COMBINATION GAS AND ELECTRIC  CORPORATION  FOR  THE
 PURPOSE OF INSTALLING HYBRID HEATING SYSTEMS, OR OTHER SYSTEM CONFIGURA-
 TIONS INVOLVING HEAT PUMP TECHNOLOGY PAIRED WITH A GAS HEATING SYSTEM;
   (E)  "HYBRID  HEATING  SYSTEM"  MEANS  AN  AIR  SOURCE HEAT PUMP, COLD
 CLIMATE AIR SOURCE HEAT PUMP, MINI-SPLIT OR OTHER APPLICABLE  HEAT  PUMP
 SYSTEMS OR TECHNOLOGIES PAIRED WITH A GAS HEATING SYSTEM; AND
   (F)  "MINI-SPLIT"  MEANS  A  HEATING OR COOLING SYSTEM THAT ALLOWS THE
 CONTROL OF TEMPERATURE IN AN INDIVIDUAL ROOM OR SPACE.
   2. THE COMMISSION SHALL INITIATE A PROCEEDING WITHIN THREE  MONTHS  OF
 THE  EFFECTIVE DATE OF THIS SECTION TO SUPPORT THE DEVELOPMENT OF HYBRID
 HEATING PILOT PROGRAMS FOR THE PURPOSE OF  MEETING  THE  GREENHOUSE  GAS
 EMISSIONS  AND  EQUITY  GOALS  OF  THE  CLIMATE LEADERSHIP AND COMMUNITY
 PROTECTION ACT (CLCPA).
   3. WITHIN SIX MONTHS OF THE EFFECTIVE DATE OF THIS SECTION,  EACH  GAS
 CORPORATION  OR COMBINATION GAS AND ELECTRIC CORPORATION SHALL SUBMIT TO
 THE COMMISSION FOR REVIEW AND APPROVAL A HYBRID  HEATING  PILOT  PROGRAM
 PLAN.  THE  HYBRID  HEATING PILOT PROGRAM PLAN SHALL INCLUDE, BUT NOT BE
 LIMITED TO, THE FOLLOWING: (A) THE SYSTEM CONFIGURATIONS TO BE  INCLUDED
 IN  THE PILOT PROGRAM; (B) SCREENING CRITERIA FOR THE SELECTION OF SITES
 TO BE INCLUDED IN THE PILOT PROGRAM; (C) COST ESTIMATES RELATED  TO  THE
 INSTALLATION OF THE SYSTEMS, INCLUDING UP-FRONT INSTALLATION AND ONGOING
 OPERATIONS  AND  MAINTENANCE  COSTS  AND  WHETHER THE PILOT PROGRAM WILL
 LEVERAGE AVAILABLE INCENTIVES AND REBATES;  (D)  PROPOSED  TOTAL  ANNUAL
 COSTS  OF THE PILOT PROGRAM, INCLUDING COSTS FOR PROGRAM ADMINISTRATION;
 (E) HOW THE PILOT PROGRAM WILL MONITOR AND VERIFY DATA RELATED TO  OPER-
 ATING COSTS AND EXPENSES, NON-COST FACTORS SUCH AS COMFORT AND RELIABIL-
 ITY, AND EMISSIONS-RELATED BENEFITS; AND (F) PROJECTED ANNUAL GREENHOUSE
 GAS EMISSIONS REDUCTIONS RESULTING FROM THE PILOT PROGRAM.
 S. 7135                             3
 
   4.  THE  HYBRID  HEATING  PILOT PROGRAM PLAN SHALL DEMONSTRATE HOW THE
 PILOT PROGRAM WILL PRIORITIZE CUSTOMERS LOCATED IN DISADVANTAGED  COMMU-
 NITIES  AND LOW- TO MODERATE-INCOME CUSTOMERS AND TRACK PARTICIPATION OF
 THOSE CUSTOMERS IN THE PILOT PROGRAM.
   5.  WITHIN ONE YEAR OF THE EFFECTIVE DATE OF THIS SECTION, THE COMMIS-
 SION SHALL DETERMINE WHETHER IT IS IN THE PUBLIC INTEREST TO APPROVE  OR
 MODIFY  SUCH HYBRID HEATING PILOT PROGRAM PLANS AND SHALL ISSUE AN ORDER
 DIRECTING EACH GAS OR COMBINATION GAS AND ELECTRIC CORPORATION TO IMPLE-
 MENT SUCH HYBRID HEATING PILOT PROGRAMS. IN DETERMINING WHETHER A HYBRID
 HEATING PILOT PROGRAM IS IN THE PUBLIC INTEREST,  THE  COMMISSION  SHALL
 CONSIDER WHETHER THE PROGRAM: (A) SUPPORTS ACHIEVEMENT OF THE GREENHOUSE
 GAS  EMISSIONS  REDUCTION  GOALS  OF  THE CLCPA; (B) ENSURES BENEFITS TO
 CUSTOMERS IN  DISADVANTAGED  COMMUNITIES  AND  LOW-  TO  MODERATE-INCOME
 CUSTOMERS;  AND (C) PROVIDES RELIABILITY BENEFITS FOR HEATING CUSTOMERS,
 ESPECIALLY IN COLD TEMPERATURES.
   6. THE COMMISSION SHALL AUTHORIZE EACH GAS CORPORATION OR  COMBINATION
 GAS  AND  ELECTRIC CORPORATION TO DEFER COSTS INCURRED IN A PROGRAM YEAR
 AND RECOVER THOSE COSTS THROUGH A SURCHARGE MECHANISM. ALL  INSTALLATION
 COSTS  SHALL  BE AMORTIZED OVER A FIVE-YEAR PERIOD FOLLOWING THE PROGRAM
 YEAR TO REDUCE THE IMPACTS TO CUSTOMERS IN  ANY  GIVEN  YEAR.  EACH  GAS
 CORPORATION  OR  COMBINATION  GAS  AND ELECTRIC CORPORATION SHALL ACCRUE
 CARRYING CHARGES AT THE WEIGHTED AVERAGE COST OF CAPITAL.
   7. BEGINNING IN THE CALENDAR YEAR FOLLOWING COMMISSION APPROVAL  OF  A
 HYBRID  HEATING  PILOT PROGRAM PLAN, EACH GAS CORPORATION OR COMBINATION
 GAS AND ELECTRIC CORPORATION SHALL SUBMIT AN ANNUAL REPORT BY JUNE THIR-
 TIETH THAT INCLUDES INFORMATION RELATED TO HEATING  SYSTEM  PERFORMANCE,
 PROVIDES  COST  AND  EMISSIONS SAVINGS SUMMARIES, AND SUMMARIZES LESSONS
 LEARNED AND GENERAL OBSERVATIONS FROM THE PRECEDING YEAR.
   § 3. This act shall take effect immediately.