§ 66-T — Thermal energy network development

* § 66-t. Thermal energy network development. 1. The public service\ncommission shall initiate a proceeding within three months of the\neffective date of this section to support the development of thermal\nenergy networks for the purpose of meeting the greenhouse gas emissions\nand equity goals of the climate leadership and community protection act.\nThe matters the commission shall consider in such proceeding shall\ninclude, but shall not be limited to, the appropriate ownership, market,\nand rate structures for thermal energy networks and whether the\nprovision of thermal energy services by gas and/or electric utilities is\nin the public interest. The commission shall promulgate rules and\nregulations within two years to: (a) create fair market access rules for\nutility-owned thermal energy networks to accept thermal energy that\naligns with the climate justice and greenhouse gas emissions reductions\nrequirements of the climate leadership and community protection act and\nthat does not increase greenhouse gas emissions or co-pollutants; (b)\nexempt small-scale thermal energy networks not owned by utilities from\ncommission regulation; (c) promote the training and transition of\nutility workers impacted by this act; and (d) encourage third party\nparticipation and competition where it will maximize benefits to\ncustomers.\n 2. Within three months of the effective date of this section, each of\nthe seven largest gas, electric, or combination gas and electric\ncorporations shall submit to the commission for review and approval at\nleast one and as many as five proposed pilot thermal energy network\nprojects. In developing the pilot project proposals, at least one pilot\nproject in each utility territory shall be proposed in a disadvantaged\ncommunity as defined in subdivision five of section 75-0101 of the\nenvironmental conservation law, and if a utility proposes four or more\npilot projects, at least two shall be proposed in disadvantaged\ncommunities. Each utility shall coordinate with other utility\nparticipants, the New York state energy research and development\nauthority, and consultants with expertise on successful pilot projects\nto ensure that the pilot projects are diverse and designed to inform the\ncommission's decisions in the proceeding on the various ownership,\nmarket, and rate structures for thermal energy networks. The pilot\nproject proposals shall include specific customer protection plans and\nshall be made publicly available on the commission's website and shall\nbe subject to a public comment period of no less than thirty days.\nWithin six months of the effective date of this section, the commission\nshall determine whether it is in the public interest to approve or\nmodify such pilot thermal energy network projects and shall issue an\norder directing each gas, electric or combination gas and electric\ncorporation to implement such proposed or modified pilot thermal energy\nnetwork projects. In considering whether pilot thermal energy network\nprojects are in the public interest, the commission shall consider\nwhether the pilot project will develop information useful for the\ncommission's promulgation of regulations governing thermal energy\nnetworks, whether the pilot project furthers the climate justice and/or\nemissions reduction mandates of the climate leadership and community\nprotection act, whether the pilot project advances financial and\ntechnical approaches to equitable and affordable building\nelectrification, and whether the pilot project creates benefits to\ncustomers and society at large, including but not limited to public\nhealth benefits in areas with disproportionate environmental or public\nhealth burdens, job retention/creation, reliability, and increased\naffordability of renewable thermal energy options.\n 3. Each gas, electric, or combination gas and utility corporation\nshall report to the commission, on a quarterly basis, and until\ncompletion of the pilot thermal energy network project as determined by\nthe commission, the status of each pilot thermal energy network project.\nThe commission shall post and make publicly available such reports on\nits website. The report shall include, but not be limited to, the: (a)\nstage of development of each pilot project; (b) barriers to development;\n(c) number of customers served; (d) costs of the pilot project; (e)\nnumber of jobs retained or created by the pilot project; and (f) any\nother such information the commission deems to be in the public\ninterest.\n 4. Any thermal energy network created under this section shall\ndemonstrate that the gas or electric corporation has entered into a\nlabor peace agreement with a bona fide labor organization of\njurisdiction that is actively engaged in representing gas and electric\ncorporation employees. The labor peace agreement shall apply to the\nemployees necessary for the maintenance and operation of such thermal\nenergy network. The labor peace agreement shall be an ongoing material\ncondition of authorization to maintain and operate such thermal energy\nnetworks. The employees eligible for these positions shall first be\nselected from and offered to a pool of transitioning utility workers who\nhave lost, or are at risk of losing, their employment with a utility\ndownsizing its gas transmission and distribution system. Such list of\npotential employees shall be provided by affected unions and provided to\nthe department of labor. The department of labor shall update and\nprovide such list to the gas or electric corporation ninety days prior\nto purchase, acquisition, and/or construction of any thermal energy\nnetwork created under this section.\n * NB There are 2 § 66-t's\n