Signed by Governor Kathy Hochul

Vote Smart's Synopsis:

Vote to pass a bill that establishes the Utility Thermal Energy Network and Jobs Act and requires the development of a statewide utility thermal energy network.

Highlights:

• Establishes a series of initiatives for expanding thermal energy use in the state and incorporating thermal energy networks into state laws for the following purposes (Sec. 2):

• To remove legal barriers to the development of utility-owned thermal energy networks;

• To develop a regulation structure for utility thermal energy networks;

• To transition affected labor into the thermal energy market; and

• To lower energy consumption and costs, and reduce associated emissions.

• Requires the Public Service Commission to initiate development of a thermal energy network within 3 months of the effective date of this provision for the purpose of meeting the greenhouse gas emission and equity goals of the Climate Leadership and Community Protection Act (CLCPA) with the following additional requirements (Sec. 11):

• That the commission discuss the matter of appropriate ownership, market, and rate structures for thermal energy networks, and discuss whether the provision of thermal energy services by gas and/or electric utilities is in the public interest; and

• That the commission create rules and regulations within 2 years that promote fair market access of utility-owned thermal energy networks, meet the climate justice and emission reduction requirements of the CLCPA, exempt small scale non-utility-owned networks from commission regulations, promote training and transition of utility workers impacted by the act, and encourage third party participation and competition in the market.

• Requires the seven largest gas, electric, and combination gas and electric corporations to report to the commission within 3 months of the effective date of this provision for review and approval of at least 1 out of a maximum of 5 thermal energy network pilot projects, reporting to the commission quarterly until the projects are completed (Sec. 11).

• Requires that at least 1 of the proposed pilot projects in a utility territory be proposed in a disadvantaged community, and requires 2 to be in disadvantaged communities if 4 or more projects are proposed (Sec. 11).

• Requires that each utility coordinate with other participating utilities, the New York state energy research and development authority, and consultants with expertise on successful pilot projects to ensure that the projects are diverse and designed to inform the commission’s decisions on the previously listed market regulations (Sec. 11).

• Requires that each project proposal be made publicly available and be subject to a 30 public comment period, and requires that the commission determine after 6 months if each project is in the public’s interest to be approved or modified (Sec. 11).

• Requires each participating corporation to enter into a labor peace agreement with a labor organization representing gas and electric employees (Sec. 11).

• Requires each public authority and their service provider to participate in all of the same aforementioned processes for proposing thermal energy network projects (Sec. 12).

• Expands existing state legislature regarding public services, transportation, and the abilities of gas and electric corporations in the state to include language and provisions about thermal energy and thermal energy networks as a source of state energy consumption (Secs. 3-9).

• Requires all contractors and subcontractors performing construction work on thermal energy networks to use apprenticeships and pre-apprenticeship agreements registered with the relevant Department (Sec. 10).

Full Bill Text