N.Y. Public Service Law § 66-t: Thermal energy network development

* § 66-t. Thermal energy network development. 1. The public service

commission shall initiate a proceeding within three months of the

effective date of this section to support the development of thermal

energy networks for the purpose of meeting the greenhouse gas emissions

and equity goals of the climate leadership and community protection act.

The matters the commission shall consider in such proceeding shall

include, but shall not be limited to, the appropriate ownership, market,

and rate structures for thermal energy networks and whether the

provision of thermal energy services by gas and/or electric utilities is

in the public interest. The commission shall promulgate rules and

regulations within two years to: (a) create fair market access rules for

utility-owned thermal energy networks to accept thermal energy that

aligns with the climate justice and greenhouse gas emissions reductions

requirements of the climate leadership and community protection act and

that does not increase greenhouse gas emissions or co-pollutants; (b)

exempt small-scale thermal energy networks not owned by utilities from

commission regulation; (c) promote the training and transition of

utility workers impacted by this act; and (d) encourage third party

participation and competition where it will maximize benefits to

customers.

2. Within three months of the effective date of this section, each of

the seven largest gas, electric, or combination gas and electric

corporations shall submit to the commission for review and approval at

least one and as many as five proposed pilot thermal energy network

projects. In developing the pilot project proposals, at least one pilot

project in each utility territory shall be proposed in a disadvantaged

community as defined in subdivision five of section 75-0101 of the

environmental conservation law, and if a utility proposes four or more

pilot projects, at least two shall be proposed in disadvantaged

communities. Each utility shall coordinate with other utility

participants, the New York state energy research and development

authority, and consultants with expertise on successful pilot projects

to ensure that the pilot projects are diverse and designed to inform the

commission's decisions in the proceeding on the various ownership,

market, and rate structures for thermal energy networks. The pilot

project proposals shall include specific customer protection plans and

shall be made publicly available on the commission's website and shall

be subject to a public comment period of no less than thirty days.

Within six months of the effective date of this section, the commission

shall determine whether it is in the public interest to approve or

modify such pilot thermal energy network projects and shall issue an

order directing each gas, electric or combination gas and electric

corporation to implement such proposed or modified pilot thermal energy

network projects. In considering whether pilot thermal energy network

projects are in the public interest, the commission shall consider

whether the pilot project will develop information useful for the

commission's promulgation of regulations governing thermal energy

networks, whether the pilot project furthers the climate justice and/or

emissions reduction mandates of the climate leadership and community

protection act, whether the pilot project advances financial and

technical approaches to equitable and affordable building

electrification, and whether the pilot project creates benefits to

customers and society at large, including but not limited to public

health benefits in areas with disproportionate environmental or public

health burdens, job retention/creation, reliability, and increased

affordability of renewable thermal energy options.

3. Each gas, electric, or combination gas and utility corporation

shall report to the commission, on a quarterly basis, and until

completion of the pilot thermal energy network project as determined by

the commission, the status of each pilot thermal energy network project.

The commission shall post and make publicly available such reports on

its website. The report shall include, but not be limited to, the: (a)

stage of development of each pilot project; (b) barriers to development;

(c) number of customers served; (d) costs of the pilot project; (e)

number of jobs retained or created by the pilot project; and (f) any

other such information the commission deems to be in the public

interest.

4. Any thermal energy network created under this section shall

demonstrate that the gas or electric corporation has entered into a

labor peace agreement with a bona fide labor organization of

jurisdiction that is actively engaged in representing gas and electric

corporation employees. The labor peace agreement shall apply to the

employees necessary for the maintenance and operation of such thermal

energy network. The labor peace agreement shall be an ongoing material

condition of authorization to maintain and operate such thermal energy

networks. The employees eligible for these positions shall first be

selected from and offered to a pool of transitioning utility workers who

have lost, or are at risk of losing, their employment with a utility

downsizing its gas transmission and distribution system. Such list of

potential employees shall be provided by affected unions and provided to

the department of labor. The department of labor shall update and

provide such list to the gas or electric corporation ninety days prior

to purchase, acquisition, and/or construction of any thermal energy

network created under this section.

* NB There are 2 § 66-t's