The New York State Senate

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10493
 
                           I N  A S S E M B L Y
 
                               May 28, 2022
                                ___________
 
 Introduced  by  COMMITTEE ON RULES -- (at request of M. of A. Joyner) --
   read once and referred to the Committee on Ways and Means
 
 AN ACT to amend the public service law, the transportation  corporations
   law,  the  labor  law  and  the public authorities law, in relation to
   thermal energy networks
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Short  title. This act shall be known and may be cited as
 the "utility thermal energy network and jobs act".
   § 2. Legislative  findings  and  intent.  The  legislature  finds  and
 declares that:
   1.  New  York  State  has  a strong interest in ensuring that building
 emissions goals of the Climate Leadership and Community  Protection  Act
 (CLCPA)  are  met. Buildings are New York's largest source of greenhouse
 gasses and other climate emissions, due  to  the  combustion  of  fossil
 fuels for heating, domestic hot water, cooking, and other end uses;
   2.  The  decarbonization of buildings must be pursued in a manner that
 is affordable, accessible, preserves and creates living-wage  jobs,  and
 retains the knowledge and experience of the existing utility union work-
 force;
   3. Thermal energy networks have the potential to decarbonize buildings
 at  the  community  and  utility scale and help achieve the goals of the
 CLCPA;
   4. Thermal energy networks consist  of  pipe  loops  between  multiple
 buildings  and  energy  sources  carrying  water at ambient temperature;
 building owners can connect to the ambient temperature loops with  water
 source  heat  pumps installed within the building, which can be used for
 heating and cooling and hot water services;
   5. Many utilities in New York State have been seeking to develop ther-
 mal energy networks, but legal and regulatory barriers and  the  current
 and  outdated  public  service  law  framework  have prevented them from
 moving these proposals forward;
   6. New York State has a strong interest in ensuring an adequate supply
 of reliable electrical power and, therefore, needs to promote the devel-

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD15957-02-2
 A. 10493                            2
 
 opment of alternative power sources and take steps  to  assure  reliable
 deliverability.  Thermal  energy  networks  are highly efficient because
 they utilize and exchange thermal energy from many  underground  sources
 and  buildings,  including recycled thermal energy, minimizing impact on
 the electricity grid;
   7. Access to thermal energy networks has the potential to  reduce  the
 up front and operating costs of building electrification for customers;
   8.  Utilities'  access  to  capital,  their  experience with networked
 infrastructure in public rights of way, and the  requirement  that  they
 serve  all  customers,  positions them well to develop and scale thermal
 energy networks that are accessible to all customers and  to  coordinate
 the  development  of  thermal energy networks with any downsizing of the
 utility gas system;
   9. New York State also has a proprietary interest in the efficient and
 reliable delivery of energy and the energy infrastructure of the  state,
 which interest is acknowledged throughout the public service law.  Util-
 ity  corporations  and  other power suppliers share these interests and,
 moreover, have a duty to protect proprietary interests in  the  projects
 they  fund  and such investments of ratepayer resources can be protected
 by establishing effective contractor qualification and performance stan-
 dards, including requirements  for  prevailing  wage  rates,  bona  fide
 apprenticeship criteria, and project labor agreements;
   10.  The  construction industry is highly skilled and labor intensive,
 and the installation of modern thermal energy networks involves  partic-
 ularly  complex  work, and, therefore, effective qualification standards
 for craft labor personnel employed  on  these  projects  are  critically
 needed to promote successful project delivery;
   11.  Finally,  the  legislature  finds that these facts are especially
 vital now because the construction industry is  experiencing  widespread
 skill shortages across the country, which are crippling existing capital
 projects   and   threatening   projects  planned  for  the  future.  The
 construction of thermal energy networks will utilize many  of  the  same
 skills  that  today's  utility  and  building  trades workforces already
 possess;
   12. Thus, it is the intent of the legislature that passage of this act
 is for the following purposes:
   a. To remove the legal barriers  to  utility  development  of  thermal
 energy  networks  and require the public service commission to authorize
 and direct utilities to immediately  commence  piloting  thermal  energy
 networks in each and every utility territory;
   b.  To direct and authorize the public service commission to develop a
 regulatory structure for utility thermal  energy  networks  that  scales
 affordable  and accessible building electrification, protects customers,
 and balances the role of incumbent monopoly utilities with other  market
 and public actors;
   c.  To  promote the successful planning and delivery of thermal energy
 networks and protect critical investments in such projects by  requiring
 the  use  of  appropriate  quality  craft labor policies that ensure the
 development of and access to an adequate supply of well trained,  highly
 skilled  craft  persons needed to support timely, reliable, high-quality
 projects;
   d. To promote strong economic development  and  good  jobs  for  local
 residents  in the expanding decarbonized sector by requiring application
 of progressive state labor and employment policies  that  ensure  public
 utility  investments  and  related  state  subsidies create unparalleled
 skill training and employment opportunities  for  residents  in  project
 A. 10493                            3
 
 areas through the use of local prevailing wage standards and successful,
 bona  fide  apprenticeship  programs,  or project labor agreements which
 incorporate prevailing wage and training  standards  and  provide  addi-
 tional benefits for project owners and workers; and
   e. To promote the use of pre-apprenticeship programs that will fortify
 and  expand existing apprenticeship programs through systematic outreach
 efforts to recruit and assist persons from underrepresented and  low-in-
 come  communities  by  providing  such  persons with remedial education,
 social services and unique opportunities for  direct  access  into  high
 quality  apprenticeship  programs  and gainful employment in the growing
 building decarbonization workforce.
   § 3. Section 2 of the public service law is amended by adding two  new
 subdivisions 28 and 29 to read as follows:
   28.  "THERMAL  ENERGY,"  WHEN  USED  IN THIS CHAPTER, SHALL MEAN PIPED
 NON-COMBUSTIBLE FLUIDS USED FOR TRANSFERRING HEAT INTO AND OUT OF BUILD-
 INGS FOR THE PURPOSE OF ELIMINATING ANY RESULTANT ON-SITE GREENHOUSE GAS
 EMISSIONS OF ALL TYPES OF HEATING AND COOLING PROCESSES, INCLUDING,  BUT
 NOT  LIMITED  TO,  COMFORT  HEATING AND COOLING, DOMESTIC HOT WATER, AND
 REFRIGERATION.
   29. "THERMAL ENERGY NETWORK," WHEN USED IN THIS  CHAPTER,  SHALL  MEAN
 ALL REAL ESTATE, FIXTURES AND PERSONAL PROPERTY OPERATED, OWNED, USED OR
 TO  BE  USED  FOR OR IN CONNECTION WITH OR TO FACILITATE A UTILITY-SCALE
 DISTRIBUTION INFRASTRUCTURE PROJECT THAT SUPPLIES THERMAL ENERGY.
   § 4. Subdivision 11 of section 2 of the public service law, as amended
 by chapter 159 of the laws of 1992, is amended to read as follows:
   11. The term "gas corporation," when used in  this  chapter,  includes
 every  corporation, company, association, joint-stock association, part-
 nership and person, their lessees, trustees or  receivers  appointed  by
 any  court  whatsoever,  owning,  operating or managing any gas plant OR
 THERMAL ENERGY NETWORK (a) except where gas  is  made  or  produced  and
 distributed  by  the maker on or through private property solely for its
 own use or the use of its tenants and not for sale to others, (b) except
 where compressed natural gas is sold, distributed or furnished solely as
 a fuel for use in motor vehicles, (c) except where manufactured  gas  is
 sold  by  the  producer  only for use or resale by a gas corporation and
 such gas of the producer and any affiliated producers does not exceed in
 any one year thirty per cent of the total  gas  sold  by  any  purchaser
 thereof  in  the area in which such manufactured gas is resold either as
 manufactured gas or as a component of mixed gas, and  (d)  except  where
 gas  is  made  or  produced  solely  from  one  or more alternate energy
 production facilities or distributed solely from one  or  more  of  such
 facilities  to users located at or near a project site; provided, howev-
 er, that any producer not included within the  meaning  of  "gas  corpo-
 ration"  by reason of exception (c) or (d) shall nevertheless be consid-
 ered a gas corporation  for  the  purposes  of  commission  jurisdiction
 relating to the safety of the construction, operation, or maintenance of
 plants manufacturing pipeline quality gas.
   § 5. Subdivision 13 of section 2 of the public service law, as amended
 by chapter 843 of the laws of 1981, is amended to read as follows:
   13.  The  term  "electric  corporation,"  when  used  in this chapter,
 includes every corporation, company,  association,  joint-stock  associ-
 ation,  partnership  and  person,  their  lessees, trustees or receivers
 appointed by any court whatsoever (other than a railroad or street rail-
 road corporation generating electricity solely for  railroad  or  street
 railroad  purposes  or  for  the  use of its tenants and not for sale to
 others) owning, operating or managing  any  electric  plant  OR  THERMAL
 A. 10493                            4
 
 ENERGY  NETWORK  except where electricity OR THERMAL ENERGY is generated
 or distributed by the producer solely on or through private property for
 railroad or street railroad purposes or for its own use or  the  use  of
 its  tenants  and not for sale to others; or except where electricity is
 generated by the producer solely from one or more  co-generation,  small
 hydro  or  alternate  energy production facilities or distributed solely
 from one or more of such facilities  to  users  located  at  or  near  a
 project site.
   §  6.  Subdivision 1 of section 5 of the public service law is amended
 by adding a new paragraph i to read as follows:
   I. TO THERMAL ENERGY PROVIDED BY  GAS  CORPORATIONS,  ELECTRIC  CORPO-
 RATIONS, OR COMBINATION GAS AND ELECTRIC CORPORATIONS.
   §  7.  Paragraphs  (c)  and  (d) of subdivision 6 of section 65 of the
 public service law, paragraph (c) as amended by chapter 204 of the  laws
 of 2010 and paragraph (d) as amended by chapter 388 of the laws of 2011,
 are amended and a new paragraph (e) is added to read as follows:
   (c)  for a remote meter reading device upon the request and consent of
 the customer; [or]
   (d) for installation of capital improvements and fixtures  to  promote
 energy  efficiency upon the request and consent of the customer, includ-
 ing but not limited to the performance of  qualified  energy  efficiency
 services  for  customers  participating  in  green  jobs-green  New York
 on-bill recovery pursuant to section sixty-six-m of this article[.]; OR
   (E) FOR THE PROVISION OF THERMAL ENERGY SERVICE.
   § 8. Section 10 of the transportation corporations law is  amended  to
 read as follows:
   §  10.  Definitions.  A  gas corporation is a corporation organized to
 manufacture, to produce or otherwise acquire and to  supply  for  public
 use  artificial  or  natural  gas [or], a mixture of both ARTIFICIAL AND
 NATURAL gases OR THERMAL ENERGY for light, heat or power and for  light-
 ing the streets and public and private buildings of cities, villages and
 towns  in this state. An electric corporation is a corporation organized
 to manufacture, to produce or  otherwise  acquire,  and  to  supply  for
 public  use  electricity OR THERMAL ENERGY for light, heat or power, and
 for lighting streets, avenues, public parks and places  and  public  and
 private buildings of cities, villages and towns within this state. A gas
 and electric corporation is a corporation organized for purposes of both
 a  gas  corporation  and  an  electric corporation. FOR PURPOSES OF THIS
 ARTICLE, "THERMAL ENERGY" SHALL HAVE THE  SAME  MEANING  AS  DEFINED  BY
 SUBDIVISION TWENTY-EIGHT OF SECTION TWO OF THE PUBLIC SERVICE LAW.
   § 9. Subdivisions 1, 2, 3 and the opening paragraph of subdivision 3-b
 of  section  11 of the transportation corporations law, subdivision 3 as
 amended by chapter 622 of the laws of 1947 and the opening paragraph  of
 subdivision  3-b  as  amended  by  chapter  840 of the laws of 1977, are
 amended to read as follows:
   1.  A gas corporation and a gas and electric  corporation  shall  have
 power  to  manufacture  gas, and to acquire THERMAL ENERGY OR natural or
 artificial gas and to mix the gases and  to  sell  and  furnish  THERMAL
 ENERGY  FOR  HEATING  OR COOLING OR gas for light, heat or power; and to
 lay conductors, PIPES, CONDUITS, DUCTS AND OTHER  FIXTURES  for  gas  OR
 THERMAL  ENERGY  NETWORKS in the streets, highways and public places, in
 each city, village and town in the  county  or  counties  named  in  its
 certificate of incorporation, with the consent of the municipal authori-
 ties  of  such  city,  village  or town, and under such reasonable regu-
 lations as they may prescribe.
 A. 10493                            5
 
   2. Every corporation having authority under any general or special law
 or under any charter or franchise, to lay down, erect or maintain pipes,
 conduits, ducts or other fixtures in, over or under the  streets,  high-
 ways and public places of any municipality for the purpose of furnishing
 or  distributing  natural  gas OR THERMAL ENERGY, may acquire and supply
 for public use artificial gas OR THERMAL ENERGY.
   Where any gas corporation is serving  natural  gas  under  permits  or
 franchises  permitting  the  laying or maintaining of mains or pipes and
 conveying natural gas, and the supply of natural gas has  become  inade-
 quate  or  insufficient  to  give reasonable service to consumers in the
 municipalities served by it, such gas corporation may supply  artificial
 gas or a mixture of natural and artificial gases OR THERMAL ENERGY under
 such permits or franchises.
   3.  An  electric  corporation and a gas and electric corporation shall
 have power to generate, acquire and supply electricity OR THERMAL ENERGY
 for heat, COOLING or power in cities, towns  and  villages  within  this
 state, and to light the streets, highways and public places thereof, and
 the public and private buildings therein; and to make, sell or lease all
 machines,  instruments, apparatus and other equipments therefor, and for
 transmitting and distributing electricity OR  THERMAL  ENERGY,  to  lay,
 erect  and construct suitable wires or other conductors, with the neces-
 sary poles, pipes, THERMAL ENERGY NETWORKS or  other  fixtures  in,  on,
 over  and  under  the  streets, avenues, public parks and places in such
 cities, towns or villages, with the consent of the municipal authorities
 thereof, and in such manner and under such  reasonable  regulations,  as
 they may prescribe.
   The  construction,  use  and maintenance by an electric corporation of
 transmission, distribution and service lines and wires OR THERMAL ENERGY
 NETWORKS in, over or under any street, highway or public place  and  the
 construction,  use and maintenance by a gas corporation of transmission,
 distribution and service pipes, conduits, ducts or  other  fixtures  in,
 over  or  under  any trees, highway or public place, as may be necessary
 for its corporate purposes, are hereby declared to be  public  uses  and
 purposes.
   §  10.  Subdivision  1  of section 224-d of the labor law, as added by
 section 2 of part AA of chapter 56 of the laws of 2021, is amended and a
 new subdivision 8 is added to read as follows:
   1.  For purposes of this section, a "covered renewable energy  system"
 means  (A) a renewable energy system, as such term is defined in section
 sixty-six-p of the public service law, with a capacity of  greater  than
 five megawatts alternating current and which involves the procurement of
 renewable  energy credits by a public entity, or a third party acting on
 behalf and for the benefit of a public entity; OR (B) ANY "THERMAL ENER-
 GY NETWORK" AS DEFINED BY SUBDIVISION TWENTY-NINE OF SECTION TWO OF  THE
 PUBLIC SERVICE LAW.
   8.  ANY  THERMAL  ENERGY NETWORK COVERED BY THIS SECTION SHALL REQUIRE
 ALL CONTRACTORS AND SUBCONTRACTORS PERFORMING CONSTRUCTION WORK  TO  USE
 APPRENTICESHIP  AGREEMENTS,  AS  DEFINED BY ARTICLE TWENTY-THREE OF THIS
 CHAPTER, WITH PRE-APPRENTICESHIP DIRECT ENTRY PROVIDERS REGISTERED  WITH
 THE DEPARTMENT.
   §  11.  The public service law is amended by adding a new section 66-t
 to read as follows:
   § 66-T. THERMAL ENERGY NETWORK  DEVELOPMENT.  1.  THE  PUBLIC  SERVICE
 COMMISSION SHALL INITIATE A PROCEEDING WITHIN THREE MONTHS OF THE EFFEC-
 TIVE  DATE  OF THIS SECTION TO SUPPORT THE DEVELOPMENT OF THERMAL ENERGY
 NETWORKS FOR THE PURPOSE OF MEETING THE  GREENHOUSE  GAS  EMISSIONS  AND
 A. 10493                            6
 
 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  REGU-
 LATIONS  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 UTILI-
 TY  WORKERS  IMPACTED BY THIS ACT; AND (D) ENCOURAGE THIRD PARTY PARTIC-
 IPATION 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  CORPO-
 RATIONS  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 UTILI-
 TY SHALL COORDINATE WITH OTHER UTILITY PARTICIPANTS, THE NEW YORK  STATE
 ENERGY  RESEARCH  AND DEVELOPMENT AUTHORITY, AND CONSULTANTS WITH EXPER-
 TISE 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 WHETH-
 ER PILOT THERMAL ENERGY NETWORK PROJECTS ARE IN THE PUBLIC INTEREST, THE
 COMMISSION SHALL CONSIDER WHETHER THE PILOT PROJECT WILL DEVELOP  INFOR-
 MATION 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 FINAN-
 CIAL AND TECHNICAL APPROACHES TO EQUITABLE AND AFFORDABLE BUILDING ELEC-
 TRIFICATION, AND WHETHER THE PILOT PROJECT CREATES BENEFITS TO CUSTOMERS
 AND SOCIETY AT LARGE, INCLUDING BUT NOT LIMITED TO PUBLIC  HEALTH  BENE-
 FITS  IN  AREAS  WITH  DISPROPORTIONATE  ENVIRONMENTAL  OR PUBLIC HEALTH
 BURDENS, JOB RETENTION/CREATION, RELIABILITY, AND INCREASED AFFORDABILI-
 TY 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)
 A. 10493                            7
 
 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 INTER-
 EST.
   4. ANY THERMAL ENERGY NETWORK CREATED UNDER THIS SECTION SHALL  DEMON-
 STRATE  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 EMPLOY-
 EES. 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 AUTHORI-
 ZATION TO MAINTAIN AND OPERATE SUCH THERMAL ENERGY NETWORKS. THE EMPLOY-
 EES 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, ACQUISI-
 TION, AND/OR CONSTRUCTION OF ANY THERMAL ENERGY  NETWORK  CREATED  UNDER
 THIS SECTION.
   §  12.  The  public authorities law is amended by adding a new section
 1020-ll to read as follows:
   § 1020-LL. PILOT THERMAL ENERGY NETWORK PROJECTS. WITHIN THREE  MONTHS
 OF  THE  EFFECTIVE  DATE  OF THIS SECTION, THE AUTHORITY AND ITS SERVICE
 PROVIDER SHALL SUBMIT FOR REVIEW TO THE DEPARTMENT OF PUBLIC SERVICE  AT
 LEAST  ONE  AND  AS  MANY  AS FIVE PROPOSED PILOT THERMAL ENERGY NETWORK
 PROJECTS AS DEFINED IN SUBDIVISION TWENTY-NINE OF  SECTION  TWO  OF  THE
 PUBLIC  SERVICE  LAW.  WITHIN  SIX  MONTHS OF THE EFFECTIVE DATE OF THIS
 SECTION, AND UPON RECOMMENDATION BY THE DEPARTMENT  OF  PUBLIC  SERVICE,
 THE  AUTHORITY  SHALL  DETERMINE WHETHER IT IS IN THE PUBLIC INTEREST TO
 APPROVE OR MODIFY SUCH PILOT THERMAL ENERGY NETWORK PROJECTS  AND  SHALL
 DIRECT THE SERVICE PROVIDER TO IMPLEMENT SUCH PROPOSED OR MODIFIED PILOT
 THERMAL  ENERGY  NETWORK  PROJECTS. THE AUTHORITY SHALL PROMULGATE RULES
 AND REGULATIONS CONSISTENT WITH THE STANDARDS SET FORTH IN  SUBDIVISIONS
 TWO AND THREE OF SECTION SIXTY-SIX-T OF THE PUBLIC SERVICE LAW.
   § 13. This act shall take effect immediately.