STATE OF NEW YORK ________________________________________________________________________ 4227 2025-2026 Regular Sessions IN ASSEMBLY January 31, 2025 ___________ Introduced by M. of A. CUNNINGHAM -- Multi-Sponsored by -- M. of A. EPSTEIN, RAGA -- read once and referred to the Committee on Energy AN ACT to amend the public service law and the labor law, in relation to providing net revenues from utility-owned large-scale renewable gener- ation projects to low-income customers and authorizes utility compa- nies to own such projects The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Legislative findings and intent. 1. New York state recog- 2 nizes the deleterious impacts of climate change including increasingly 3 frequent catastrophic weather events. 4 2. Pursuant to the New York state climate leadership and community 5 protection act (CLCPA), New York state seeks to dramatically reduce 6 greenhouse gas emissions and move its electric generation from fossil 7 fuel-based generation to renewable-based generation. New York state has 8 mandated that seventy percent of electricity come from renewable energy 9 sources by year 2030 and one hundred percent of electricity come from 10 carbon neutral sources by 2040. 11 3. Further, New York state recognizes that the current pace of devel- 12 opment of in-state renewable energy resources is insufficient to meet 13 the state's statutory renewable generation goals on schedule. 14 4. Because New York state seeks to accomplish these energy-related 15 goals and standards as soon as practicable allowing regulated utilities 16 to own and operate renewable generation is essential to achieving such 17 goals and to provide a consistent and affordable supply of carbon-free, 18 renewably generated electricity by 2030, through 2050 and beyond. 19 5. New York state seeks to continue to develop in-state renewable 20 energy projects that will drive down costs, benefit customers receiving 21 retail electric delivery particularly those customers who are low to 22 moderate income. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD06499-01-5
A. 4227 2 1 6. New York state has a proprietary interest in these projects being 2 efficiently built and operated without unnecessary disruptions, which 3 justifies the use of project labor agreements and labor peace agree- 4 ments. 5 § 2. The public service law is amended by adding a new section 66-x to 6 read as follows: 7 § 66-x. Regulated large scale renewable generation. 1. In order to 8 support the state in meeting state energy-related goals and standards, 9 corporations subject to the provisions of this article providing retail 10 electric service shall be authorized to own and operate renewable energy 11 generating facilities in New York state. Such corporations shall be 12 authorized to own and operate such facilities individually or in part- 13 nership with other persons doing business in New York. 14 2. A corporation owning and operating a renewable energy generation 15 facility pursuant to this section shall provide all net revenues from 16 such facility to low-income customers in the form of bill credits, which 17 shall be in addition to any other program or benefit offered by the 18 corporation to assist such customers. 19 3. In addition to the provisions of subdivision two of this section, 20 any renewable energy generating facility owned by such a corporation 21 shall be: 22 (a) subject to commission oversight in order to ensure that: (i) the 23 power generated at such facilities remains in-state for the benefit of 24 customers and the state; (ii) the power generated at such facilities 25 shall not be exported out-of-state; and (iii) any repowering of such 26 generating facilities shall comply with all requirements of this 27 section; 28 (b) built, pursuant to a competitive third-party bidding process, 29 which shall be issued by the corporation; 30 (c) subject to section sixty-six-r of this article and section two 31 hundred twenty-four-d of the labor law; and 32 (d) owned and operated in a manner that provides beneficial cost and 33 rate impacts to customers. 34 4. The commission shall establish a generation capacity limit for the 35 total generation capacity owned by corporations pursuant to this 36 section. The total generation capacity shall not exceed twenty-five 37 percent of the total generation capacity needed to achieve the renewable 38 energy goals described in section sixty-six-p of this article. 39 5. The commission shall issue such orders, rules and regulations as 40 may be necessary and appropriate to implement this section. 41 § 3. The public service law is amended by adding a new section 66-y to 42 read as follows: 43 § 66-y. Labor agreements and labor peace agreements. 1. For the 44 purposes of this section: 45 (a) "covered renewable energy system" means a renewable energy system, 46 as such term is defined in section sixty-six-p of this article, with a 47 capacity of greater than five megawatts alternating current and which 48 involves the procurement of renewable energy credits by a public entity, 49 or a third party acting on behalf of and for the benefit of a public 50 entity. "Covered renewable energy system" shall also include any gener- 51 ation facility authorized pursuant to section sixty-six-x of this arti- 52 cle; 53 (b) "labor peace agreement" means an agreement between an entity and 54 labor organization that, at a minimum, protects the state's proprietary 55 interests by prohibiting labor organizations and members from engaging
A. 4227 3 1 in picketing, work stoppages, boycotts, and any other economic interfer- 2 ence with the relevant renewable energy system; 3 (c) "public entity" shall include, but shall not be limited to, the 4 state, a local development corporation as defined in subdivision eight 5 of section eighteen hundred one of the public authorities law or section 6 fourteen hundred eleven of the not-for-profit corporation law, a munici- 7 pal corporation as defined in section one hundred nineteen-n of the 8 general municipal law, an industrial development agency formed pursuant 9 to article eighteen-A of the general municipal law or industrial devel- 10 opment authorities formed pursuant to article eight of the public 11 authorities law, and any state, local or interstate or international 12 authorities as defined in section two of the public authorities law; and 13 shall include any trust created by any such entities; and 14 (d) "renewable energy credits agreement" shall mean any public entity 15 contract that provides production-based payments to a renewable energy 16 project as defined in this section. 17 2. The commission shall require that the owner of a covered renewable 18 energy system, or a third party acting on the owner's behalf, as an 19 ongoing condition of any renewable energy credits agreement with a 20 public entity, or as an ongoing condition of its authorization to oper- 21 ate and support the state in meeting energy-related goals, shall stipu- 22 late to the fiscal officer that it will enter into a labor peace agree- 23 ment with at least one bona fide labor organization either where such 24 bona fide labor organization is actively representing employees provid- 25 ing necessary operations and maintenance services for the renewable 26 energy system at the time of such agreement or upon notice by a bona 27 fide labor organization that is attempting to represent employees who 28 will provide necessary operations and maintenance services for the 29 renewable energy system employed in the state. The maintenance of such a 30 labor peace agreement shall be an ongoing material condition of any 31 continuation of payments under a renewable energy credits agreement or 32 authorization by the commission. 33 3. (a)(i) Any public entity in each contract for construction, recon- 34 struction, alteration, repair, improvement or maintenance of a covered 35 renewable energy system which involves the procurement of a renewable 36 energy credits agreement by a public entity, or a third party acting on 37 behalf and for the benefit of a public entity, the "public work" for the 38 purposes of this subdivision, shall ensure that such contract shall 39 contain a provision that the iron and structural steel used or supplied 40 in the performance of the contract or any subcontract thereto and that 41 is permanently incorporated into the public work, shall be produced or 42 made in whole or substantial part in the United States, its territories 43 or possessions. In the case of a structural iron or structural steel 44 product all manufacturing shall take place in the United States, from 45 the initial melting stage through the application of coatings, except 46 metallurgical processes involving the refinement of steel additives. For 47 the purposes of this subdivision, "permanently incorporated" shall mean 48 an iron or steel product that is required to remain in place at the end 49 of the project contract, in a fixed location, affixed to the public work 50 to which it was incorporated. Iron and steel products that are capable 51 of being moved from one location to another are not permanently incorpo- 52 rated into a public work. 53 (ii) Any corporation in each contract for construction, recon- 54 struction, alteration, repair, improvement or maintenance of a covered 55 renewable energy system, or a third party acting on behalf and for the 56 benefit of the corporation, the "public work" for the purposes of this
A. 4227 4 1 subdivision, shall ensure that such contract shall contain a provision 2 that the iron and structural steel used or supplied in the performance 3 of the contract or any subcontract thereto and that is permanently 4 incorporated into the public work, shall be produced or made in whole or 5 substantial part in the United States, its territories or possessions. 6 In the case of a structural iron or structural steel product all manu- 7 facturing must take place in the United States, from the initial melting 8 stage through the application of coatings, except metallurgical proc- 9 esses involving the refinement of steel additives. Iron and steel 10 products that are capable of being moved from one location to another 11 are not permanently incorporated into a public work. 12 (b) The provisions of paragraph (a) of this subdivision shall not 13 apply if the head of the department or agency or corporation, under 14 subparagraph (i) of paragraph (a) of this subdivision constructing the 15 public works, in their sole discretion, determines that the provisions 16 would not be in the public interest, would result in unreasonable costs, 17 or that obtaining such steel or iron in the United States would increase 18 the cost of the contract by an unreasonable amount, or such iron or 19 steel, including without limitation structural iron and structural steel 20 cannot be produced or made in the United States in sufficient and 21 reasonably available quantities and of satisfactory quality. The head of 22 the department or agency constructing the public works shall include 23 this determination in an advertisement or solicitation of a request for 24 proposal, invitation for bid, or solicitation of proposal, or any other 25 method provided for by law or regulation for soliciting a response from 26 offerors intending to result in a contract pursuant to this subdivision. 27 The provisions of paragraph (a) of this subdivision shall not apply for 28 equipment purchased by a covered renewable energy system prior to the 29 effective date of this section. 30 (c) The head of the department or agency constructing the public works 31 may, at their sole discretion, provide for a solicitation of a request 32 for proposal, invitation for bid, or solicitation of proposal, or any 33 other method provided for by law or regulation for soliciting a response 34 from offerors intending to result in a contract pursuant to this para- 35 graph involving a competitive process in which the evaluation of compet- 36 ing bids gives significant consideration in the evaluation process to 37 the procurement of equipment and supplies from businesses located in New 38 York state. 39 4. Whenever changes are proposed to any public procurement process 40 involving the program described in subdivision two of this section, the 41 commission shall make simultaneous recommendations to the temporary 42 president of the senate and speaker of the assembly, regarding necessary 43 changes to this section, if any, in meeting the goals outlined in the 44 legislative findings and intent of the chapter of the laws of two thou- 45 sand twenty-five which added this section. 46 § 4. Subdivision 1 of section 224-d of the labor law, as amended by 47 section 31 of part O of chapter 58 of the laws of 2024, is amended to 48 read as follows: 49 1. For purposes of this section, a "covered renewable energy system" 50 means (a) a renewable energy system, as such term is defined in section 51 sixty-six-p of the public service law, with a capacity of one or more 52 megawatts alternating current and which involves the procurement of 53 renewable energy credits by a public entity, or a company or corporation 54 provided in subdivisions twenty-three and twenty-four of section two of 55 the public service law, or a third party acting on behalf and for the 56 benefit of a public entity; (b) any "thermal energy network" as defined
A. 4227 5 1 by subdivision twenty-nine of section two of the public service law; (c) 2 any offshore wind supply chain project, including but not limited to 3 port infrastructure, primary component manufacturing, finished component 4 manufacturing, subassembly manufacturing, subcomponent manufacturing, or 5 raw material producers, or a combination thereof receiving direct fund- 6 ing from the New York state energy research and development authority 7 pursuant to an award under a New York state energy research and develop- 8 ment authority solicitation; [or] (d) a "major utility transmission 9 facility" as such term is defined by section one hundred twenty of the 10 public service law; or (e) any generation facility authorized pursuant 11 to section sixty-six-x of the public service law. 12 § 5. No later than sixty days after the effective date of this act, 13 the public service commission shall commence a proceeding necessary and 14 appropriate to implement the provisions of section 66-x of the public 15 service law. 16 § 6. This act shall take effect immediately.