N.Y.
Public Service Law Section 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 Environmental Conservation Law § 75-0101 (Definitions)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
Source:
Section 66-T — Thermal energy network development, https://www.nysenate.gov/legislation/laws/PBS/66-T (updated Dec. 30, 2022; accessed Apr. 20, 2024).
