Senate Bill S9422

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9422
 
                             I N  S E N A T E
 
                               May 25, 2022
                                ___________
 
 Introduced  by  Sen.  PARKER -- 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, 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 and outdated public service  law  framework  have  prevented  them  from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;

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD15957-02-2
              

 S. 9422                             2
 
   6. New York State has a strong interest in ensuring an adequate supply
 of reliable electrical power and, therefore, needs to promote the devel-
 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
 S. 9422                             3
 
 utility investments and  related  state  subsidies  create  unparalleled
 skill  training  and  employment  opportunities for residents in project
 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
 S. 9422                             4
 
 railroad  purposes  or  for  the  use of its tenants and not for sale to
 others) owning, operating or managing  any  electric  plant  OR  THERMAL
 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-
 S. 9422                             5
 
 ties of such city, village or town,  and  under  such  reasonable  regu-
 lations as they may prescribe.
   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-
 S. 9422                             6
 
 TIVE 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 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.
 S. 9422                             7
 
 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 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.