S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8198
 
                             I N  S E N A T E
 
                             February 2, 2022
                                ___________
 
 Introduced  by  Sen. KRUEGER -- read twice and ordered printed, and when
   printed to be committed to the Committee on  Energy  and  Telecommuni-
   cations
 
 AN  ACT  to  amend  the public service law and the transportation corpo-
   rations law, in relation to aligning  utility  regulation  with  state
   climate justice and emission reduction targets; to repeal section 66-b
   of the public service law relating to continuation of gas service; and
   to  repeal section 66-g of the public service law relating to the sale
   of indigenous natural gas for generation of electricity
 
   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 "gas transition and affordable energy act".
   § 2. Legislative findings. The legislature finds and declares that:
   1. The Climate Leadership and Community Protection Act  (the  "CLCPA")
 requires greenhouse gas emission reductions from all sectors, which will
 entail,  among  other  things, converting buildings throughout the state
 from heating and cooking with combustible fuels to heating  and  cooking
 with  non-emitting  sources  such  as  energy-efficient air, ground, and
 water sourced electric heat pumps, which also provide cooling, and elec-
 tric and induction stoves.
   2. Fossil fuels burned in buildings for heating, hot water, and  cook-
 ing  account  for approximately one-third of greenhouse gas emissions in
 New York State, enabled by utility provision of gas service via pipeline
 to the property.
   3. Heating and cooking with fossil fuels impacts  indoor  and  outdoor
 air  quality,  resulting  in  health  impacts such as increased rates of
 asthma and heart disease.
   4. Decarbonization of buildings will require changes  to  the  utility
 gas regulations and gas planning processes in order to ensure an equita-
 ble  transition  and  manage  economic  risks  to gas customers, munici-
 palities, and the utilities as electrification proceeds.
   5. Over two and a half million households in New York struggle to  pay
 their heating bills. The Public Service Commission has declared, but not
 yet  achieved  the  goal  that  customers should not pay more than 6% of
 their income for utility energy services, a number based on a nationally
 accepted standard.
              

 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD14537-01-2
 S. 8198                             2
 
   6. Thus, it is the intent of the legislature that passage of this  act
 is for the following purposes:
   a.  to  ensure  that  the  Public Service Law regarding regulation and
 oversight of gas utilities will provide for  the  timely  and  strategic
 retirement  of  the  gas  distribution  system  in a just and affordable
 manner as required to meet the climate justice  and  emission  reduction
 mandates of the CLCPA;
   b.  to  ensure  that  the  Public Service Commission has the statutory
 authority and direction to align utility regulations and  planning  with
 the CLCPA climate justice and emission reduction mandates and to require
 the  Public  Service  Commission  to take a proactive role in the timely
 identification and amendment of such laws, regulations or rulings as may
 pose an impediment to achieving CLCPA mandates;
   c. to end ratepayer-subsidized  utility  incentives  for  fossil  fuel
 expansion while ensuring the equitable provision of electric service and
 efficient heating, cooling, cooking, and hot water services;
   d.  to  require  the  Public  Service  Commission, within one year, to
 develop a statewide gas utility services decarbonization plan  based  on
 clear biannual gas sales reduction targets, robust analysis, and consid-
 eration of several electrification pathways;
   e.  to  ensure  affordable  access  to  electric  heating  and cooling
 services and to protect low-income and  moderate-income  customers  from
 undue burdens as they electrify their buildings; and
   f. to clarify that municipal gas bans are not preempted under New York
 State law.
   §  3. Subdivision 1 of section 4 of the public service law, as amended
 by chapter 594 of the laws of 2021, is amended to read as follows:
   1. There shall be in the department of public service a public service
 commission, which shall possess the powers and duties hereinafter speci-
 fied, and also all powers necessary or proper to enable it to carry  out
 the  purposes  of  this chapter AND TO ENABLE ACHIEVEMENT OF THE CLIMATE
 JUSTICE AND EMISSION REDUCTION TARGETS IN ARTICLE  SEVENTY-FIVE  OF  THE
 ENVIRONMENTAL  CONSERVATION LAW, AND SUCH SUCCESSORS IN LAW AND FUNCTION
 AS MAY ARISE FROM TIME TO TIME.  The commission shall  consist  of  five
 members,  to  be  appointed  by the governor, by and with the advice and
 consent of the senate. A commissioner shall be designated as chairman of
 the commission by the governor to serve in such capacity at the pleasure
 of the governor or until his  term  as  commissioner  expires  whichever
 first occurs. At least one commissioner shall have experience in utility
 consumer  advocacy.  No  more than three commissioners may be members of
 the same political party unless, pursuant to action taken under subdivi-
 sion two of this section, the number of commissioners shall exceed five,
 and in such event no more than four commissioners may be members of  the
 same political party.
   §  4.  Subdivisions  1  and  2 of section 5 of the public service law,
 subdivision 1 as amended and subdivision 2 as added by  chapter  155  of
 the laws of 1970,  are amended to read as follows:
   1.  The  jurisdiction,  supervision,  powers  and duties of the public
 service commission shall extend under this chapter:
   [b.]  A.  To  the  manufacture,  conveying,  transportation,  sale  or
 distribution  of  gas  (natural  or manufactured or mixture of both) and
 electricity for light, heat, COOLING, or power, to  gas  plants  and  to
 electric  plants  and  to the persons or corporations owning, leasing or
 operating the same.
 S. 8198                             3

   [c.] B. To the manufacture, holding, distribution, transmission,  sale
 or  furnishing  of  steam  for heat or power, to steam plants and to the
 persons or corporations owning, leasing or operating the same.
   [d.] C. To every telephone line which lies wholly within the state and
 that  part  within  the  state of New York of every telephone line which
 lies partly within and partly without the state and to  the  persons  or
 corporations owning, leasing or operating any such telephone line.
   [e.] D. To every telegraph line which lies wholly within the state and
 that  part  within  the  state of New York of every telegraph line which
 lies partly within and partly without the state and to  the  persons  or
 corporations owning, leasing or operating any such telegraph line.
   [f.]  E.  To  the  furnishing  or  distribution of water for domestic,
 commercial or public uses and to water systems and  to  the  persons  or
 corporations owning, leasing or operating the same.
   [g.]  F.  To  every  stock yard within the state and to the stock yard
 company owning, leasing or operating the same, to the same extent and in
 respect to the same objects and purposes as such  jurisdiction  extends,
 under this chapter, to depots, freight houses and shipping stations of a
 common  carrier, including the duty of such stock yard company to submit
 reports and be subjected to investigation as if it were a common  carri-
 er, and the powers and duties of such commission to fix charges and make
 and enforce orders relating to adequate service by such company.
   [h.]  G.  A  corporation or person owning or holding a majority of the
 stock of a common carrier, gas  corporation  or  electrical  corporation
 subject  to  the  jurisdiction of the public service commission shall be
 subject to the supervision of the public service commission  in  respect
 of  the  relations between such common carrier, gas corporation or elec-
 trical corporation and such owners or holders of a majority of the stock
 thereof in so far as such relations arise from  or  by  reason  of  such
 ownership  or  holding of stock thereof or the receipt or holding of any
 money or property thereof or from or by reason of any  contract  between
 them;  and  in respect of such relations shall in like manner and to the
 same extent as such common carrier, gas corporation or electrical corpo-
 ration be subject to examination of accounts, records and memoranda, and
 shall furnish such reports and information as the public service commis-
 sion shall from time to time direct and require, and shall be subject to
 like penalties for default therein.
   2. The commission shall encourage all persons and corporations subject
 to its jurisdiction to formulate  and  carry  out  long-range  programs,
 individually  or  cooperatively,  for  the  performance  of their public
 service responsibilities,  INCLUDING  THE  ACHIEVEMENT  OF  THE  CLIMATE
 JUSTICE  AND  EMISSION  REDUCTION TARGETS IN ARTICLE SEVENTY-FIVE OF THE
 ENVIRONMENTAL CONSERVATION LAW, with economy, efficiency, and  care  for
 the  public  safety,  the  preservation  of environmental values and the
 conservation of natural resources.
   § 5. Section 30 of the public service law, as amended by  chapter  686
 of the laws of 2002, is amended to read as follows:
   § 30. Residential  gas,  electric  and  steam  service policy. 1. This
 article shall apply to the provision of all or  any  part  of  the  gas,
 electric  or  steam  service provided to any residential customer by any
 gas, electric or steam and municipalities corporation  or  municipality.
 It  is hereby declared to be the policy of this state that the continued
 provision of [all or any part of such gas,] electric [and steam service]
 SERVICES to all residential customers  without  unreasonable  qualifica-
 tions  or lengthy delays is necessary for the preservation of the health
 and general welfare, IS CONSISTENT WITH THE ACHIEVEMENT OF  THE  STATE'S
 S. 8198                             4

 CLIMATE  JUSTICE  AND  EMISSION  REDUCTION TARGETS, and is in the public
 interest.  IT IS FURTHER THE POLICY OF THIS STATE THAT GAS  SERVICE  FOR
 EXISTING  RESIDENTIAL  CUSTOMERS  MUST BE MAINTAINED IN A MANNER THAT IS
 SAFE  AND  ADEQUATE, NOT UNJUSTLY DISCRIMINATORY OR UNDULY PREFERENTIAL,
 AND IN ALL RESPECTS JUST AND REASONABLE, WHILE PROVIDING FOR AN  ORDERLY
 PHASE-OUT OF GAS SERVICE.
   2.  THE  RELEVANT  GOVERNING  AUTHORITY  OF THE GAS AND MUNICIPALITIES
 CORPORATION OR MUNICIPALITY SHALL REGULATE FOR THE  CONTINUED  PROVISION
 OF  GAS SERVICE TO ALL RESIDENTIAL CUSTOMERS UNTIL THE COMMISSION ESTAB-
 LISHES A STATEWIDE GAS  SERVICE  TRANSITION  PLAN  PURSUANT  TO  SECTION
 SEVENTY-SEVEN-A  OF  THIS CHAPTER.   AFTER SUCH PLAN IS ESTABLISHED, THE
 COMMISSION OR OTHER RELEVANT GOVERNING AUTHORITY  SHALL  TAKE  ANY  SUCH
 ACTION,  AFTER  NOTICE  AND A HEARING, AS IS NECESSARY TO FACILITATE THE
 ACHIEVEMENT OF THE CLIMATE JUSTICE AND  EMISSION  REDUCTION  TARGETS  IN
 ARTICLE SEVENTY-FIVE OF THE ENVIRONMENTAL CONSERVATION LAW, BUT IN DOING
 SO IT SHALL ACTIVELY ENCOURAGE A TRANSITION AWAY FROM COMBUSTIBLE  FUELS
 AND  ENSURE THAT ALL RESIDENTIAL CUSTOMERS HAVE ACCESS TO ELECTRIC HEAT-
 ING AND COOLING SERVICES WITHOUT UNREASONABLE QUALIFICATIONS,  UNREASON-
 ABLE  COSTS,  OR  LENGTHY DELAYS WITH A GOAL THAT LOW-TO-MODERATE INCOME
 CUSTOMERS, DEFINED AS HOUSEHOLDS WITH ANNUAL INCOMES AT OR BELOW  EIGHTY
 PERCENT OF THE AREA MEDIAN INCOME OF THE COUNTY OR METRO AREA WHERE THEY
 RESIDE,  ARE  ADEQUATELY  PROTECTED  FROM BEARING ENERGY BURDENS GREATER
 THAN SIX PERCENT OF THEIR INCOME, INCLUDING ANY UNDUE BURDENS IMPOSED BY
 THE COST TO PURCHASE AND OPERATE ELECTRIC EQUIPMENT NEEDED TO FACILITATE
 THE TERMINATION OF GAS SERVICE.
   § 6. Subdivisions 1, 3 and 4 of section 31 of the public service  law,
 as  added  by  chapter  713  of the laws of 1981, are amended to read as
 follows:
   1. Every gas corporation, electric corporation or municipality,  shall
 provide  residential  service  upon  the  oral  or written request of an
 applicant, provided that ANY SUCH GAS SERVICE SHALL ONLY BE PROVIDED  IN
 ACCORDANCE  WITH  SECTION  THIRTY  OF THIS ARTICLE AND IS SUBJECT TO ANY
 ORDERS OR REGULATIONS LIMITING OR DISCONTINUING  GAS  SERVICE  THAT  ARE
 IMPLEMENTED  BY  THE  COMMISSION  TO  FACILITATE  THE ACHIEVEMENT OF THE
 CLIMATE JUSTICE AND EMISSION REDUCTION TARGETS IN  ARTICLE  SEVENTY-FIVE
 OF  THE  ENVIRONMENTAL  CONSERVATION  LAW, AND PROVIDED FURTHER THAT the
 commission may require that requests for service  be  in  writing  under
 circumstances  as  it  deems  necessary and proper as set forth by regu-
 lation, and provided further that the applicant:
   (a) makes full payment for residential utility service provided  to  a
 prior account in [his] THE APPLICANT'S name; or
   (b)  agrees  to  make  payments  under  a deferred payment plan of any
 amounts due for service to a prior account in [his] THE APPLICANT'S name
 and makes a down payment based on criteria  to  be  established  by  the
 commission.  No such down payment shall exceed one-half of any money due
 from an applicant for residential utility service, or three months aver-
 age billing, whichever is less; or
   (c) is a recipient of public assistance, supplemental security  income
 or  additional state payments pursuant to the social services law, or is
 an applicant for such assistance, income or payments,  and  the  utility
 corporation or the municipality receives payment from, or is notified of
 the  applicant's eligibility for utility payments by the social services
 official of the social services district in which  such  person  resides
 for  amounts due for service to a prior account in the applicant's name,
 together with guarantee of future payments to the extent  authorized  by
 the social services law; AND
 S. 8198                             5

   (D) RECEIVES CLEAR, TIMELY INFORMATION FROM THE GAS CORPORATION, ELEC-
 TRIC CORPORATION,  MUNICIPALITY, OR RETAIL ENERGY SERVICE COMPANY, WRIT-
 TEN  IN  PLAIN LANGUAGE AND APPROVED BY THE COMMISSION AFTER STAKEHOLDER
 INPUT, ON INCENTIVES AND OPPORTUNITIES FOR INSTALLING,  AS  ALTERNATIVES
 TO  GAS, ENERGY-EFFICIENT ELECTRIC HEATING AND COOLING TECHNOLOGIES, AND
 FOR  OTHER  ENERGY  EFFICIENCY  MEASURES,  WEATHERIZATION,   DEMAND-SIDE
 MANAGEMENT, AND DISTRIBUTED ENERGY RESOURCE PROGRAMS.
   3.  Subject  to the requirements of subdivisions four and five of this
 section, whenever a residential customer moves to a new residence within
 the service territory of the same utility corporation  or  municipality,
 [he] THE APPLICANT shall be eligible to receive service at the new resi-
 dence  and such service shall be considered a continuation of service in
 all respects, with any deferred payment agreement honored, and with  all
 rights  of  such  customer and such utility corporation provided by this
 article unimpaired.
   4. In the case of any application for service to a building  which  is
 not  supplied  with electricity or gas, a utility corporation or munici-
 pality shall be obligated to provide ELECTRIC service to such  a  build-
 ing,  AND MAY PROVIDE GAS SERVICE FOR SUCH A BUILDING IN ACCORDANCE WITH
 PUBLIC SERVICE COMMISSION REGULATION OR BY THE RELEVANT AUTHORITY OF THE
 MUNICIPALITIES CORPORATION OR MUNICIPALITY, provided however,  that  the
 commission  may  require applicants for service to buildings [located in
 excess of one hundred feet from gas or electric transmission  lines]  to
 pay  or agree in writing to pay material and installation costs relating
 to the applicant's proportion of the pipe, conduit,  duct  or  wire,  or
 other facilities to be installed.
   §  7. Section 12 of the transportation corporations law, as separately
 amended by chapters 713 and 895 of the laws of 1981, is amended to  read
 as follows:
   §  12. Gas MAY and electricity must be supplied on application. Except
 in the case of an application for residential utility  service  pursuant
 to  article  two  of the public service law, upon written application of
 the owner or occupant of any building [within one hundred  feet  of  any
 main  of a gas corporation or gas and electric corporation, or a line of
 an electric corporation or gas and electric corporation, appropriate  to
 the  service requested,] and payment by [him] THE APPLICANT of all money
 due from [him] THE APPLICANT to the corporation, it  shall  supply  [gas
 or]  electricity  as may be required for [lighting] such building AND IT
 MAY PROVIDE GAS FOR SUCH BUILDING  IN  ACCORDANCE  WITH  PUBLIC  SERVICE
 COMMISSION  REGULATION  OR  BY  THE  RELEVANT GOVERNING AUTHORITY OF THE
 MUNICIPALITIES CORPORATION OR  MUNICIPALITY,  notwithstanding  there  be
 rent  or compensation in arrears for gas or electricity supplied, or for
 meter, wire, pipe or fittings furnished, to a former  occupant  thereof,
 unless  such  owner or occupant shall have undertaken or agreed with the
 former occupant to pay or to exonerate [him] THEM from  the  payment  of
 such  arrears,  and  shall refuse or neglect to pay the same; and if for
 the space of ten days after such  application,  and  the  deposit  of  a
 reasonable  sum as provided in the next section, if required, the corpo-
 ration shall refuse or neglect to supply gas or [electric  light]  ELEC-
 TRICITY  as  required,  such  corporation  shall  forfeit and pay to the
 applicant the sum of ten dollars, and the further sum  of  five  dollars
 for  every  day  thereafter  during  which such refusal or neglect shall
 continue; provided that no such corporation shall  be  required  to  lay
 service  pipes  or  wires  for  the purpose of supplying gas or electric
 light to any applicant where the ground in which such pipe  or  wire  is
 required  to be laid shall be frozen, or shall otherwise present serious
 S. 8198                             6
 
 obstacles to laying the same; nor unless  the  applicant,  if  required,
 shall  deposit in advance with the corporation a sum of money sufficient
 to pay the cost  of  [his]  THE  APPLICANT'S  proportion  of  the  pipe,
 conduit,  duct  or wire required to be installed, and the expense of the
 installation of such portion.
   § 8. Subdivision 2 of section 66 of the public service law, as amended
 by chapter 877 of the laws of 1953, is amended  and  a  new  subdivision
 12-e is added to read as follows:
   2.  Investigate  and  ascertain, from time to time, the quality of gas
 supplied by persons, corporations and municipalities; examine or  inves-
 tigate  the  methods  employed by such persons, corporations and munici-
 palities in manufacturing, distributing and supplying gas or electricity
 for light, heat or power and in transmitting the same, and have power to
 order such reasonable improvements  as  will  best  promote  the  public
 interest, preserve the public health and protect those using such gas or
 electricity and those employed in the manufacture and distribution ther-
 eof,  and  have power to order reasonable improvements and extensions of
 the works, wires, poles, lines, conduits,  ducts  and  other  reasonable
 devices,  apparatus  and  property  of gas corporations, electric corpo-
 rations and municipalities; and have power after an investigation and  a
 hearing  to  order any corporation having authority under any general or
 special law or under any charter or franchise, to  lay  down,  erect  or
 maintain  wires,  pipes,  conduits,  ducts or other fixtures in, over or
 under the streets, highways and public places of  any  municipality  for
 the  purpose  of  supplying,  selling  or  distributing  natural gas, to
 augment its supply of natural gas, whenever the commission deems  neces-
 sary  and whenever artificial gas can be reasonably obtained, by acquir-
 ing by purchase, manufacture or otherwise a supply thereof to  be  mixed
 with  such  natural  gas,  in  order  to  render adequate service to the
 customers of such corporation or to maintain a proper and uniform  pres-
 sure;  and  have power after an investigation and a hearing to order any
 corporation having authority under any general or special law  or  under
 any  charter  or franchise, to lay down, erect or maintain wires, pipes,
 conduits, ducts or other fixtures in, over or under the  streets,  high-
 ways and public places of any municipality for the purpose of supplying,
 selling or distributing artificial gas, to augment its supply of artifi-
 cial  gas,  whenever the commission deems necessary and whenever natural
 gas can be reasonably obtained, by acquiring by purchase or otherwise  a
 supply  thereof to be mixed with such artificial gas, in order to render
 adequate service to the customers of such corporation or to  maintain  a
 proper  and  uniform pressure; and to fix such rate for the supplying of
 mixed gas as shall secure to such corporation a  fair  return;  and  may
 order  the  curtailment  or discontinuance of the use of natural gas for
 manufacturing or industrial purposes, for  periods  aggregating  not  to
 exceed  four  months  in  any calendar year, if it is established to the
 satisfaction of the commission that the supply of  natural  gas  is  not
 adequate  to meet the reasonable demands of domestic consumption and may
 [prohibit the use of natural gas  in  wasteful  devices  and  practices]
 ORDER  THE  CURTAILMENT OR DISCONTINUANCE OF THE USE OF THE DISTRIBUTION
 SYSTEM, WHERE THE COMMISSION HAS DETERMINED  THAT  SUCH  CURTAILMENT  OR
 DISCONTINUANCE  IS REASONABLY REQUIRED TO IMPLEMENT STATE ENERGY POLICY,
 PROVIDED THAT SUCH CURTAILMENT OR  DISCONTINUANCE  SHALL  BE  CONSISTENT
 WITH  A  PLAN  FOR  THE  PHASE-OUT OF THE USE OF GAS, AND ACCOMPANIED BY
 COORDINATION  ASSISTANCE  AND,  WHERE  REASONABLY  REQUIRED,   FINANCIAL
 ASSISTANCE  IN  THE IDENTIFICATION AND ADOPTION OF ALTERNATIVES, AND MAY
 S. 8198                             7

 PROHIBIT THE USE OF NATURAL GAS IN WASTEFUL  DEVICES AND  PRACTICES  AND
 REQUIRE CONSERVATION AND EFFICIENCY IN GAS USAGE.
   12-E.  UPON THE APPLICATION OF A GAS CORPORATION FOR A MAJOR CHANGE IN
 RATES AS DEFINED IN SUBDIVISION TWELVE OF THIS SECTION,  THE  COMMISSION
 SHALL REVIEW THE CAPITAL CONSTRUCTION PLAN OF SUCH CORPORATION AND SHALL
 ESTABLISH   A   PROCESS   TO   EXAMINE  FEASIBLE  ALTERNATIVES  TO  SUCH
 CONSTRUCTION. SUCH PROCESS SHALL INCLUDE THRESHOLDS AND CRITERIA FOR THE
 TYPES OF PROJECTS SUBJECT TO  SUCH  EXAMINATION.  THE  COMMISSION  SHALL
 REQUIRE  PARTICIPATION IN SUCH PROCESS BY EACH ELECTRIC CORPORATION WITH
 A SERVICE AREA OVERLAPPING THE SERVICE AREA OF THE GAS CORPORATION;  AND
 THE COMMISSION SHALL HAVE POWER TO REQUIRE ANY SUCH ELECTRIC CORPORATION
 TO  PARTICIPATE  IN  ALTERNATIVES TO GAS CAPITAL CONSTRUCTION, INCLUDING
 PARTICIPATION IN FINANCING, WHERE SUCH ALTERNATIVE  INCLUDES  CONVERSION
 OF GAS CUSTOMERS TO ELECTRICITY USAGE.
   §  9. Section 66-a of the public service law, as added by chapter 7 of
 the laws of 1948, subdivision 1 as amended and subdivision 3 as added by
 chapter 582 of the laws of 1975, subdivision 2 as amended by chapter 722
 of the laws of 1977, is amended to read as follows:
   § 66-a. Conservation of gas,  declaration  of  policy,  delegation  of
 power.    1.  It  is hereby declared to be the policy of this state that
 when there develops in any area a situation under  which  a  gas  corpo-
 ration supplying gas to such area is unable to meet the reasonable needs
 of  its  consumers  and  of  persons or corporations applying for new or
 additional gas service, the available supply of gas shall  be  allocated
 among  the  customers  of such gas corporation, in such manner as may be
 necessary to protect public health and safety and to avoid  undue  hard-
 ship,  PARTICULARLY FOR LOW-TO-MODERATE INCOME RESIDENTIAL CUSTOMERS AND
 HARD-TO-ELECTRIFY INDUSTRIAL AND COMMERCIAL USES, pursuant to rules  and
 regulations  as  may be adopted by the commission, and that to carry out
 this declared policy the jurisdiction of the public  service  commission
 should  be  clarified.   IT IS FURTHER DECLARED TO BE THE POLICY OF THIS
 STATE THAT GAS SUPPLY RESOURCES FOR SERVICE TO  EXISTING  GAS  CUSTOMERS
 MUST  BE  MAINTAINED IN A MANNER THAT IS SAFE AND ADEQUATE, NOT UNJUSTLY
 DISCRIMINATORY OR UNDULY PREFERENTIAL, AND  IN  ALL  RESPECTS  JUST  AND
 REASONABLE, WHILE PROVIDING FOR AN ORDERLY PHASE-OUT OF GAS SERVICE.
   2. Notwithstanding the provisions of any statute or any franchise held
 by  a gas corporation, the commission shall have power, upon the finding
 that CONTINUED GAS SERVICE IS NOT CONSISTENT WITH THE ACHIEVEMENT OF THE
 CLIMATE JUSTICE AND EMISSION REDUCTION TARGETS IN  ARTICLE  SEVENTY-FIVE
 OF THE ENVIRONMENTAL CONSERVATION LAW, OR THAT there exists such a shor-
 tage of gas in any area in the state, that the gas corporation supplying
 such  area  is unable and will be unable to secure or produce sufficient
 gas to meet the reasonable needs of its  customers  and  of  persons  or
 corporations applying for new or additional gas service, to require such
 corporation  to  immediately  discontinue  the supplying of gas to addi-
 tional customers or of supplying additional service to  present  custom-
 ers,  for  such  purpose or purposes as may be designated by the commis-
 sion, or to  customers  using  gas  for  a  purpose  prohibited  by  the
 commission  pursuant  to  this  act,  and that upon the finding that the
 supply of gas available is  and  will  be  insufficient  to  supply  the
 demands  of  all consumers receiving service, to require such gas corpo-
 ration to curtail or discontinue  service  to  any  or  all  classes  of
 customers  of  such  gas  corporation.  In  imposing such a direction or
 requirement, the commission shall give consideration first  to  existing
 domestic  uses  and  uses  deemed  to  be necessary by the commission to
 protect public health and safety and to avoid undue hardship [and  shall
 S. 8198                             8

 be  limited  to the period of the emergency provided that the gas corpo-
 ration affected shall make such restriction,  curtailing  or  discontin-
 uance  applicable  to  all customers or applicants for service in a like
 class. If the commission determines that good cause exists for supplying
 service  to  additional customers or for supplying additional service to
 some existing customers, notwithstanding the curtailment  or  discontin-
 uance  of  service  to other existing customers, it shall, to the extent
 feasible, allocate gas with equal priority to new or additional domestic
 uses of gas and commercial or industrial  processes  which  require  gas
 because  there  is  no practical substitute for it in such proportion as
 the commission determines to be reasonable.  Provided that  the  commis-
 sion  shall be permitted, after public hearing, to authorize any natural
 gas produced from lands under the waters of Lake Erie  to  be  used  for
 process  or  feedstock  requirements].  The  commission is authorized to
 adopt such rules, regulations and orders as are necessary or appropriate
 to carry out these delegated powers.
   3. In carrying out the delegated powers provided for in this  section,
 the commission shall, to the extent practicable, determine and establish
 gas conservation measures or standards, INCLUDING ENERGY EFFICIENT ELEC-
 TRIFICATION  OF GAS END USES. The commission may require compliance with
 such measures or standards as a condition of receiving service.
   4. THE COMMISSION SHALL DETERMINE CONDITIONS UNDER WHICH NEW OR  ADDI-
 TIONAL  GAS  SERVICE  IS WARRANTED DURING A PHASE-OUT OF THE USE OF GAS,
 NOTWITHSTANDING THE NEED TO CONSERVE RESOURCES FOR SERVICE  TO  EXISTING
 GAS  CUSTOMERS.    SUCH  DETERMINATION SHALL BE CONSISTENT WITH THE MOST
 RECENT STATE ENERGY PLAN, AND MAY TAKE INTO  ACCOUNT  FACTORS  INCLUDING
 ECONOMIC  DEVELOPMENT,  IMPACTS  ON NEW AND EXISTING CUSTOMERS INCLUDING
 LOW-TO-MODERATE INCOME CUSTOMERS, IMPACTS ON SYSTEM SAFETY AND ADEQUACY,
 AND EQUITY TOWARD EXISTING CUSTOMERS WITH  LIMITED  CONVERSION  ALTERNA-
 TIVES.
   5. THE COMMISSION MAY REQUIRE GAS AND/OR ELECTRIC UTILITIES TO PROVIDE
 COORDINATION  ASSISTANCE  AND FINANCIAL ASSISTANCE, IN SUCH FORMS AS THE
 COMMISSION DEEMS REASONABLY REQUIRED TO IMPLEMENT STATE  ENERGY  POLICY,
 TO  IDENTIFY  AND ADOPT ALTERNATIVES WHERE APPLICATIONS FOR NEW OR ADDI-
 TIONAL GAS SERVICE ARE DENIED.
   § 10. Section 66-b of the public service law is REPEALED.
   § 11. The public service law is amended by adding a new  section  66-s
 to read as follows:
   §  66-S.  EXPANSION  OF GAS PLANT. EXCEPT AS PROVIDED IN THIS SECTION,
 AND NOTWITHSTANDING ANY OTHER PROVISION  OF  THIS  CHAPTER,  AFTER  JUNE
 THIRTIETH,  TWO  THOUSAND  TWENTY-TWO, NO GAS CORPORATION SHALL COMMENCE
 CONSTRUCTION OF NEW GAS MAINS OR OTHER DISTRIBUTION PLANT THE RESULT  OF
 WHICH  WOULD  BE  TO  EXPAND THE AVAILABILITY OF SERVICE INTO GEOGRAPHIC
 AREAS WHERE GAS SERVICE WAS NOT AVAILABLE PRIOR TO THAT  DATE.  NO  SUCH
 PLANT  SHALL BE PUT INTO SERVICE AFTER SEPTEMBER THIRTIETH, TWO THOUSAND
 TWENTY-THREE. THE COMMISSION MAY  AUTHORIZE  EXCEPTIONS,  PROVIDED  THAT
 PROJECTS  QUALIFYING  FOR  EXCEPTION  MUST BE OF A CATEGORY SPECIFICALLY
 IDENTIFIED AS SUITABLE FOR TRANSITION PURSUANT TO SUBDIVISION  THREE  OF
 SECTION  6-104  OF  THE  ENERGY  LAW, AND MUST BE COMPLETED AND PUT INTO
 SERVICE NOT LATER THAN SEPTEMBER THIRTIETH, TWO THOUSAND TWENTY-NINE.
   § 12. Section 66-g of the public service law is REPEALED.
   § 13. The public service law is amended by adding a new  section  77-a
 to read as follows:
   §  77-A. ALIGNING UTILITY REGULATION WITH CLIMATE JUSTICE AND EMISSION
 REDUCTION TARGETS. 1.  WITHIN THREE MONTHS OF THE EFFECTIVE DATE OF THIS
 SECTION,  THE  COMMISSION  SHALL  INITIATE  A  PROCEEDING,  OR  MULTIPLE
 S. 8198                             9
 
 PROCEEDINGS, AS IT DEEMS APPROPRIATE, TO CONSIDER AND ACT ON THE MATTERS
 IDENTIFIED  IN  THIS  SECTION IN ORDER TO BETTER ALIGN ITS REGULATION OF
 UTILITY SERVICES WITH THE TIMELY ACHIEVEMENT OF THE CLIMATE JUSTICE  AND
 EMISSION  REDUCTION TARGETS IN ARTICLE SEVENTY-FIVE OF THE ENVIRONMENTAL
 CONSERVATION LAW. IF THE COMMISSION IS ACTIVELY CONSIDERING ONE OR  MORE
 OF  THE POLICIES IDENTIFIED IN THIS SECTION, IT SHALL NOT BE REQUIRED TO
 OPEN A NEW PROCEEDING FOR THAT POLICY TOPIC. ALL  PROCEEDINGS  INITIATED
 PURSUANT  TO  THIS  SECTION  SHALL  BE  COMPLETED WITHIN ONE YEAR OF THE
 EFFECTIVE DATE OF THIS SECTION, AFTER WHICH TIME  THE  COMMISSION  SHALL
 INITIATE  REGULAR  SUBSEQUENT  PROCEEDINGS,  AS  IT  DEEMS NECESSARY, TO
 ENSURE THE ACHIEVEMENT OF  THE  GOALS  OUTLINED  IN  THIS  SECTION.  THE
 PROCEEDING OR PROCEEDINGS SHALL INCLUDE:
   (A) A REVIEW OF THE PUBLIC SERVICE LAW AND ITS CURRENT RULES AND POLI-
 CY  GUIDANCE  TO  IDENTIFY  ANY  LAW, RULE, OR GUIDANCE THAT MAY INHIBIT
 TIMELY, EQUITABLE  ACHIEVEMENT  OF  THE  CLIMATE  JUSTICE  AND  EMISSION
 REDUCTION TARGETS IN ARTICLE SEVENTY-FIVE OF THE ENVIRONMENTAL CONSERVA-
 TION  LAW. EVERY THREE MONTHS, THE COMMISSION SHALL REPORT TO THE LEGIS-
 LATURE ITS PROGRESS AND FINDINGS, IDENTIFY SUBSEQUENT  ACTIONS  IT  WILL
 TAKE,  AND MAKE RECOMMENDATIONS FOR ANY STATUTORY AMENDMENTS THAT MAY BE
 NEEDED TO FACILITATE THE TIMELY ACHIEVEMENT OF SUCH TARGETS.  THIS QUAR-
 TERLY REPORTING REQUIREMENT WILL BEGIN SIX MONTHS  AFTER  THE  EFFECTIVE
 DATE OF THIS SECTION AND WILL CONTINUE FOR THREE YEARS.
   (B) A REVISION OF THE COMMISSION'S RULES AND REGULATIONS FOR DETERMIN-
 ING APPROPRIATE ALLOWANCES FOR THE EXTENSION OF GAS AND ELECTRIC UTILITY
 SERVICES TO ENSURE THAT UTILITY SERVICE IS PROVIDED IN A MANNER CONSIST-
 ENT  WITH  THE ACHIEVEMENT OF THE CLIMATE JUSTICE AND EMISSION REDUCTION
 TARGETS IN ARTICLE SEVENTY-FIVE OF THE ENVIRONMENTAL  CONSERVATION  LAW.
 IN  ESTABLISHING  RULES GOVERNING THE ALLOWANCE FOR THE EXTENSION OF GAS
 SERVICE, THE COMMISSION SHALL ELIMINATE ALL  LINE  EXTENSION  ALLOWANCES
 FOR  GAS  SERVICE  AND MAY INCREASE ALLOWANCES FOR ELECTRIC SERVICE. THE
 COMMISSION MAY ESTABLISH RULES THAT PROVIDE FOR DISTINCT ALLOWANCES  FOR
 ALL-ELECTRIC CUSTOMERS AND FOR DUAL-FUEL CUSTOMERS AND MAY PROVIDE ADDI-
 TIONAL  ALLOWANCES TO BUILDINGS THAT ARE MADE READY FOR BENEFICIAL ELEC-
 TRIC LOADS SUCH AS THOSE WITH ELECTRIC VEHICLE CHARGING  FACILITIES  AND
 GRID  INTERACTIVE  BUILDINGS, AS WELL AS THERMAL STORAGE DEVICES SUCH AS
 GEOTHERMAL BOREHOLES AND LOOPS.
   (C) A STATEWIDE GAS SERVICE  TRANSITION  PLAN.  THE  COMMISSION  SHALL
 INITIATE  A  PROCEEDING  AND  DIRECT  DEPARTMENT OF PUBLIC SERVICE STAFF
 TOGETHER WITH NEW YORK STATE ENERGY RESEARCH AND  DEVELOPMENT  AUTHORITY
 TO SOLICIT UTILITY AND STAKEHOLDER INPUT AND DEVELOP A STATEWIDE PLAN TO
 GUIDE  THE  EQUITABLE  AND COST-EFFECTIVE TRANSITION OF THE GAS DISTRIB-
 UTION INDUSTRY FOR THE PURPOSE OF  ACHIEVING  THE  CLIMATE  JUSTICE  AND
 EMISSION  REDUCTION TARGETS IN ARTICLE SEVENTY-FIVE OF THE ENVIRONMENTAL
 CONSERVATION LAW. SUCH STATEWIDE PLAN SHALL (1) DETERMINE, BASED ON  THE
 BEST  AVAILABLE  INFORMATION,  THE  GAS  SALES  REDUCTIONS  NECESSARY TO
 ACHIEVE THE TWO THOUSAND THIRTY AND TWO THOUSAND  FIFTY  GREENHOUSE  GAS
 EMISSION  REDUCTION TARGETS IN ARTICLE SEVENTY-FIVE OF THE ENVIRONMENTAL
 CONSERVATION LAW; (2) SET BIENNIAL GAS SALES REDUCTION TARGETS FOR  EACH
 GAS  UTILITY  AND  DEVELOP  A PROCESS FOR INTERIM REVIEW TO UPDATE THESE
 TARGETS AS NEW INFORMATION BECOMES AVAILABLE; (3) IDENTIFY  AND  ANALYZE
 VARIOUS  EQUITABLE  AND  COST-EFFECTIVE POLICY PATHWAYS FOR TRANSFORMING
 EACH GAS CORPORATION'S DISTRIBUTION SYSTEM AND PROGRAMS TO ACHIEVE THOSE
 TARGETS; (4) PROVIDE MEANINGFUL COMPARISONS AMONG GAS CORPORATIONS,  GAS
 SERVICE  AREAS,  AND REGIONS WITHIN THE STATE AND THEIR IMPACT ON POTEN-
 TIAL TRANSITION TIMELINES ACROSS THE STATE'S GAS DISTRIBUTION  INDUSTRY;
 AND (5) EVALUATE AND RECOMMEND CONSOLIDATIONS OF ELECTRIC AND GAS UTILI-
 S. 8198                            10
 
 TY SERVICE TERRITORIES AND ASSETS AND THE DEVELOPMENT OF RATE STRUCTURES
 THAT  FACILITATE  AFFORDABLE  ELECTRIFICATION.  FOR THE PURPOSES OF THIS
 SECTION, AFFORDABLE SHALL MEAN A GOAL OF CUSTOMERS PAYING NO  MORE  THAN
 SIX PERCENT OF THEIR INCOME FOR ENERGY SUPPLY AND DELIVERY.
   2.  IN  DEVELOPING  THE STATEWIDE PLAN REFERRED TO IN PARAGRAPH (C) OF
 SUBDIVISION ONE OF THIS SECTION, THE  COMMISSION  SHALL  USE  CONSISTENT
 METHODS   AND  CONSIDERATIONS  ACROSS  ALL  INDIVIDUAL  GAS  CORPORATION
 ANALYSES AND SHALL USE CURRENT CUSTOMER, COST, REVENUE,  AND  GAS  PLANT
 DATA  FROM EACH INDIVIDUAL GAS CORPORATION. THE COMMISSION SHALL UTILIZE
 INDEPENDENT EXPERTS AND SHALL NOT RELY SOLELY ON  ANALYSIS  PROVIDED  BY
 UTILITIES  OR  UTILITY-FUNDED STUDIES. ALL SUPPORTING DATA SHALL BE MADE
 PUBLICLY AVAILABLE WITH ANY CONFIDENTIALITY REDACTIONS  LIMITED  TO  THE
 MAXIMUM EXTENT POSSIBLE.
   3.  (A) THE STATEWIDE PLAN REFERRED TO IN PARAGRAPH (C) OF SUBDIVISION
 ONE OF THIS SECTION SHALL INCLUDE, BUT NOT BE LIMITED  TO,  ANALYSIS  OF
 THE FOLLOWING NON-EXCLUSIVE POLICY PATHWAYS:
   (1)  GEOGRAPHICALLY  TARGETED  AND  STRATEGIC  ELECTRIFICATION EFFORTS
 COUPLED WITH LIMITATION OR DISCONTINUATION OF GAS SERVICE AND  DECOMMIS-
 SIONING  OF  SECTIONS  OF  THE GAS DISTRIBUTION SYSTEM IMPLEMENTED ON AN
 EQUITABLE, ORDERLY, AND TRANSPARENT SCHEDULE THAT IS  COMMUNICATED  WELL
 IN ADVANCE TO AFFECTED CUSTOMERS.
   (2) A DISTRICT GEOTHERMAL ENERGY SYSTEMS PATHWAY THAT ANALYSES VARIOUS
 OWNERSHIP  STRUCTURES FOR DISTRICT GEOTHERMAL SYSTEMS, INCLUDING BUT NOT
 LIMITED TO: (I) GAS CORPORATIONS SHIFTING INVESTMENT INTO DISTRICT ENER-
 GY SYSTEMS TO MOVE CUSTOMERS AWAY FROM CONSUMING GAS, WHICH SHALL  PRES-
 ENT  A  FORECAST,  ESTIMATE,  OR OTHER QUANTIFICATION OF THE COSTS, RATE
 IMPACTS, AND ACTUAL ECONOMY-WIDE  GREENHOUSE  GAS  EMISSIONS  REDUCTIONS
 INVOLVED  IF  THE COSTS OF THE DISTRICT ENERGY SYSTEMS ARE COMBINED WITH
 THE GAS CORPORATION'S GAS SERVICE AS WELL  AS  IF  THE  COSTS  ARE  KEPT
 DISTINCT  FROM  ITS GAS SERVICE; (II) ELECTRIC CORPORATIONS INVESTING IN
 DISTRICT ENERGY  SYSTEMS;  AND  (III)  UTILITIES  FACILITATING  DISTRICT
 GEOTHERMAL  SYSTEMS  OWNED  BY  THIRD-PARTY  PRIVATE  COMPANIES, MUNICI-
 PALITIES OR THE POWER AUTHORITY OF THE STATE OF NEW YORK.
   (3) AN INTEGRATED UTILITY SERVICE PATHWAY THAT  ASSUMES  ELECTRIC  AND
 GAS  CONSUMPTION,  TECHNOLOGIES,  PRICES,  AND SALES ARE COORDINATED AND
 INTEGRATED AMONG DIFFERENT UTILITIES TO FACILITATE AFFORDABLE ELECTRIFI-
 CATION OF  GAS  END  USES.  THIS  APPROACH  SHALL  ASSUME  A  STRATEGIC,
 GEOGRAPHICALLY  TARGETED  APPROACH  TO  ELECTRIFICATION THAT TRANSITIONS
 CUSTOMERS SERVED BY A PARTICULAR GAS DISTRIBUTION LINE, AND RETIRES THAT
 LINE, WITH PRIORITY FOR RETIREMENT ASSIGNED TO GAS LINES THAT ARE AGING,
 LEAKING, OR OTHERWISE DUE TO BE REPLACED.
   (B) THE FOLLOWING INFORMATION SHALL BE PROVIDED FOR EACH POLICY  PATH-
 WAY INCLUDED IN THE STATEWIDE PLAN:
   (1)  A  FORECAST,  ESTIMATE,  OR OTHER QUANTIFICATION OF THE COSTS AND
 ACTUAL ECONOMY-WIDE GREENHOUSE GAS EMISSIONS REDUCTIONS ASSOCIATED  WITH
 SUCH  PATHWAY.  THE EVALUATION OF COSTS SHALL INCLUDE THE FOLLOWING: (I)
 AN ANALYSIS  OF  POSSIBLE  MECHANISMS,  METHODOLOGIES,  OR  POLICIES  TO
 ADDRESS  THE RECOVERY OF COSTS OR RESPONSIBILITY FOR COST INCURRENCE, AS
 WELL AS MITIGATION OF COSTS  AND  IMPACTS  FOR  CUSTOMERS,  PARTICULARLY
 LOW-TO-MODERATE  INCOME  CUSTOMERS;  (II) A FORECAST, ESTIMATE, OR OTHER
 QUANTIFICATION OF THE COSTS OF ELECTRIFICATION STRATEGIES,  AS  WELL  AS
 OTHER  STRATEGIES  IDENTIFIED  THROUGH  THE ANALYSIS; AND (III) FOR EACH
 ELECTRIFICATION STRATEGY, A CLEAR AND  TRANSPARENT  EXPLANATION  OF  KEY
 ASSUMPTIONS  USED  IN  THE  ANALYSIS AND A CALCULATION OF GREENHOUSE GAS
 EMISSIONS REDUCTIONS, INCLUSIVE OF GREENHOUSE GAS EMISSIONS FROM  GENER-
 ATION SOURCES.
 S. 8198                            11
 
   (2)  AN  ANALYSIS  OF  QUALITATIVE  FACTORS, SUCH AS IMPACTS ON PUBLIC
 HEALTH AND SAFETY, RELIABILITY, ECONOMIC DEVELOPMENT, EQUITY,  EMISSIONS
 AND OTHER AIR POLLUTANT REDUCTIONS, AND TIMING.
   (3) AN ANALYSIS OF THE IMPACT ON GAS UTILITY WORKERS AND THE POTENTIAL
 FOR THEIR JUST TRANSITION INTO THE ELECTRIFICATION WORKFORCE.
   4.  THE STATEWIDE PLAN REFERRED TO IN PARAGRAPH (C) OF SUBDIVISION ONE
 OF THIS SECTION SHALL INCLUDE THE FOLLOWING ADDITIONAL COST ANALYSES:
   (A) THE COSTS, BOTH QUANTITATIVE AND QUALITATIVE, OF CONTINUING EXIST-
 ING GAS UTILITY REGULATION WHILE BUILDING DECARBONIZATION OCCURS THROUGH
 OTHER EFFORTS SUCH AS BUILDING CODES, APPLIANCE  STANDARDS,  AND  INCEN-
 TIVES.  THE ANALYSIS SHALL INCLUDE, BUT IS NOT LIMITED TO, A QUANTIFICA-
 TION OF STRANDED ASSETS,  RATE  IMPACTS,  WORKER  IMPACTS,  AND  UTILITY
 REVENUES,  ASSETS, LIABILITIES, AND CREDIT WORTHINESS, AND OTHER UTILITY
 TRANSITION COSTS.
   (B) AN ANALYSIS OF THE COST OF TRANSITIONING RESIDENTIAL CUSTOMERS  TO
 ELECTRIC  EQUIPMENT NECESSARY TO FACILITATE THE TERMINATION OF THEIR GAS
 SERVICE. THIS ANALYSIS SHALL CONSIDER THE SCOPE  AND  SCALE  OF  FUNDING
 NEEDS  TO  FACILITATE  THIS  TRANSITION, EVALUATE HOW AND TO WHAT EXTENT
 RATEPAYER FUNDING MAY CONTRIBUTE TO THIS TRANSITION, AND IDENTIFY POTEN-
 TIAL ALTERNATIVE SOURCES OF FUNDING THAT MAY BE ABLE  TO  CONTRIBUTE  TO
 THIS  TRANSITION.  THE  ANALYSIS  SHALL  SEPARATELY EVALUATE THE COST OF
 FULLY FUNDING THE  TRANSITION  FOR  LOW-TO-MODERATE  INCOME  RESIDENTIAL
 CUSTOMERS.
   5.  THE  COMMISSION  SHALL  EVALUATE AND DEVELOP A VARIETY OF NEW RATE
 STRUCTURES AND RATE CLASSES TO FACILITATE AFFORDABLE ELECTRIFICATION  OF
 GAS  END USES, SUCH AS AN ELECTRIFICATION RATE, A LOW-TO-MODERATE INCOME
 RATE CLASS, VOLUNTARY TIME OF USE RATES, VOLUNTARY DEMAND  RATES,  ELEC-
 TRIC  VEHICLE CHARGING RATES, RENEWABLE DISTRIBUTED GENERATION RATES AND
 OTHER RATE STRUCTURES, AS WELL AS ADDITIONAL  BILL  ASSISTANCE  MEASURES
 FOR LOW-TO-MODERATE INCOME CUSTOMERS. IN DEVELOPING NEW RATE STRUCTURES,
 THE  COMMISSION SHALL HAVE A GOAL OF ENSURING THAT RESIDENTIAL CUSTOMERS
 PAY NO MORE THAN SIX PERCENT OF THEIR INCOME FOR ELECTRICITY.
   6. IN DEVELOPING THE STATEWIDE PLAN REFERRED TO IN  PARAGRAPH  (C)  OF
 SUBDIVISION  ONE  OF THIS SECTION, THE COMMISSION SHALL ACTIVELY CONSULT
 WITH ENVIRONMENTAL JUSTICE COMMUNITIES, DISADVANTAGED  COMMUNITIES,  AND
 OTHER  EXPERTS AND STAKEHOLDERS VIA ACCESSIBLE PUBLIC MEETINGS AND HEAR-
 INGS HELD IN DIFFERENT LOCATIONS ACROSS NEW YORK. IN DEVELOPING A  SCOPE
 AND  DRAFT  OF  THE  PLAN, THE COMMISSION SHALL HOLD AT LEAST SIX PUBLIC
 MEETINGS ACROSS NEW YORK THAT ALLOW FOR INTERACTIVE  ENGAGEMENT  BETWEEN
 MEMBERS  OF THE PUBLIC AND DEPARTMENT STAFF. AT LEAST TWO OF THESE MEET-
 INGS MUST BE HELD IN THE UPSTATE REGION, TWO MUST BE HELD IN  THE  DOWN-
 STATE  REGION,  AND  ONE  MUST  BE  HELD VIRTUALLY. ONCE A DRAFT PLAN IS
 DEVELOPED, AND AT LEAST THREE MONTHS BEFORE THE COMMISSION  VOTES  ON  A
 FINAL  PLAN,  THE  DEPARTMENT  SHALL  HOLD AT LEAST SIX PUBLIC HEARINGS,
 INCLUDING AT LEAST TWO IN THE  UPSTATE  REGION,  TWO  IN  THE  DOWNSTATE
 REGION,  AND  ONE VIRTUAL HEARING. SUCH PUBLIC MEETINGS AND PUBLIC HEAR-
 INGS SHALL BE PUBLICIZED AT LEAST SIX WEEKS IN ADVANCE IN VARIOUS  FORMS
 OF  MEDIA.  AT  LEAST HALF OF THE MEETINGS AND HALF OF THE HEARINGS MUST
 OFFER SPEAKING TIMES BETWEEN THE HOURS OF SIX PM AND NINE PM. PROVISIONS
 FOR TRANSLATION SERVICES, AMERICAN SIGN LANGUAGE INTERPRETATION,  CLOSED
 CAPTIONING, AND ACCESS TO OTHER ACCOMMODATIONS PROVIDED BY THE AMERICANS
 WITH  DISABILITIES  ACT SHALL BE PROVIDED WHEN REQUESTED WITH SUFFICIENT
 ADVANCE NOTICE. MATERIALS  SHALL  BE  MADE  PUBLICLY  AVAILABLE  ON  THE
 COMMISSION'S  WEBSITE,  AND THE DRAFT PLAN SHALL BE MADE PUBLICLY AVAIL-
 ABLE AT LEAST ONE MONTH BEFORE THE FIRST HEARING.  ALL  SUPPORTING  NON-
 CONFIDENTIAL  DATA,  COST-BENEFIT ANALYSES, FINANCIAL ANALYSES, ENVIRON-
 S. 8198                            12
 
 MENTAL IMPACT  STATEMENTS,  AND  EMISSIONS  ASSESSMENTS  SHALL  BE  MADE
 PUBLICLY AVAILABLE.
   7. WITHIN SIX MONTHS OF THE ISSUANCE OF THE FINAL STATEWIDE PLAN, EACH
 GAS  CORPORATION  SHALL SUBMIT A PROPOSAL TO THE COMMISSION THAT DETAILS
 SUCH CORPORATION'S PLAN FOR ALIGNING ITS GAS SYSTEM WITH  THE  STATEWIDE
 PLAN AND WHICH OUTLINES ITS PLANS FOR ACHIEVING THE GAS SALES REDUCTIONS
 NECESSARY  FOR  THE  STATE  TO  ACHIEVE THE CLIMATE JUSTICE AND EMISSION
 REDUCTION TARGETS IN ARTICLE SEVENTY-FIVE OF THE ENVIRONMENTAL CONSERVA-
 TION LAW, INCLUDING SPECIFIC INITIATIVES,  ACTIONS,  AND  INTERIM  MILE-
 STONES.
   8.  THE COMMISSION SHALL REVISE ITS RULES AND REGULATIONS FOR CONDUCT-
 ING BENEFIT-COST ANALYSES TO ENSURE THAT THE METHODOLOGY  AND  THE  BASE
 FINANCIAL AND FRAMEWORK ASSUMPTIONS FOR THE ANALYSIS SUPPORT ACHIEVEMENT
 OF  THE CLIMATE JUSTICE AND EMISSION REDUCTION TARGETS IN ARTICLE SEVEN-
 TY-FIVE OF THE ENVIRONMENTAL  CONSERVATION  LAW.  SUCH  REVISIONS  SHALL
 INCLUDE, BUT NOT BE LIMITED TO:
   (A)  GREENHOUSE  GAS  EMISSION  REDUCTION  TARGETS  SHALL BE USED AS A
 CONSTRAINT IN DESIGNING THE SCENARIOS TO BE ANALYZED SUCH THAT  ALL  THE
 SCENARIOS  SHALL  COMPLY  WITH  THE  STATUTORY  GREENHOUSE  GAS EMISSION
 REQUIREMENTS AND ANY INTERIM TARGETS SET BY THE DEPARTMENT  OF  ENVIRON-
 MENTAL CONSERVATION OR THE COMMISSION.
   (B) QUANTIFICATION OF PUBLIC HEALTH IMPACTS FROM IMPROVEMENTS IN AMBI-
 ENT  AND INDOOR AIR QUALITY. WHEN QUANTITATIVE METRICS ARE NOT POSSIBLE,
 QUALITATIVE ANALYSIS SHALL BE INCLUDED.
   (C) CONSIDERATION OF THE SIGNIFICANT UNCERTAINTIES AND  RISKS  ASSOCI-
 ATED  WITH  DIFFERENT  SCENARIOS,  INCLUDING THE ENVIRONMENTAL IMPACT OF
 LEAKED GAS, THE PROLONGED RELIANCE ON THE GAS SYSTEM THAT  RESULTS  FROM
 LONG-LIVED  INVESTMENTS  IN  GAS INFRASTRUCTURE AND GAS-CONSUMING EQUIP-
 MENT, AND THE POSITIVE OPTION VALUE ASSOCIATED WITH  MEASURES  THAT  CAN
 ELIMINATE  OR  DEFER  THE NEED FOR INVESTMENTS IN GAS INFRASTRUCTURE AND
 GAS-CONSUMING EQUIPMENT.
   (D) ONLY ATTRIBUTE ALTERNATIVE FUELS WITH EMISSION REDUCTION  BENEFITS
 UNDER  THE  BENEFIT-COST  ANALYSIS  IF  THE ENVIRONMENTAL ATTRIBUTES ARE
 RETAINED BY THE UTILITY FOR THE BENEFIT OF THE UTILITY'S CUSTOMERS.
   (E) USE ACCURATE DEPRECIATION SCHEDULES THAT ASSUME THE FULL VALUE  OF
 ANY NEW GAS ASSET IS FULLY DEPRECIATED NO LATER THAN TWO THOUSAND FIFTY,
 ABSENT  DEMONSTRATION  THAT  THE  SPECIFIC  ASSET WILL REMAIN IN SERVICE
 BEYOND TWO THOUSAND FIFTY, AND EARLIER IF IT IS LIKELY THAT  SUCH  ASSET
 WILL  NEED  TO  BE PHASED OUT OR RETIRED BEFORE TWO THOUSAND FIFTY GIVEN
 ANY INTERIM GREENHOUSE GAS EMISSION REDUCTION TARGETS OR  GEOGRAPHICALLY
 TARGETED STRATEGIC ASSET RETIREMENT.
  (F)  ASSESS  DEMOGRAPHIC  IMPACTS  BY MEASURING WITH AS MUCH GEOGRAPHIC
 GRANULARITY AS POSSIBLE, AND CONSIDERING DIFFERENT  LEVELS  OF  EXPOSURE
 AND  RISK  FACTORS  FOR  IMPACTS  ON DISADVANTAGED COMMUNITIES AND OTHER
 POPULATIONS WITH VULNERABILITY TO CHANGES INDUCED BY REGULATION.
   9. BY OCTOBER THIRTY-FIRST IN THE YEAR OF THE EFFECTIVE DATE  OF  THIS
 SECTION,  AND  EACH YEAR THEREAFTER, THE COMMISSION SHALL DELIVER TO THE
 LEGISLATURE AND THE GOVERNOR A REPORT ON ITS ACTIONS AND  PROGRESS  WITH
 RESPECT TO THE ITEMS SPECIFIED IN SUBDIVISION ONE OF THIS SECTION.
   10.  NOTHING  IN  THIS  CHAPTER  OR ANY OTHER LAW OF NEW YORK SHALL BE
 INTERPRETED OR OTHERWISE CONSTRUED AS  PREEMPTING  A  MUNICIPALITY  FROM
 REQUIRING  ALL-ELECTRIC BUILDINGS, ZERO-EMISSION BUILDINGS, OR OTHERWISE
 PROHIBITING NEW GAS SERVICE CONNECTIONS  FOR  NEW  BUILDINGS  AND  MAJOR
 RENOVATIONS.
   § 14. This act shall take effect immediately.