Senate Bill S7035

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7035
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                               May 17, 2023
                                ___________
 
 Introduced  by Sen. HARCKHAM -- read twice and ordered printed, and when
   printed to be committed to the Committee on Environmental Conservation
 
 AN ACT in relation to a pilot project in furtherance of climate  leader-
   ship  and community protection act clean energy standards in Lake Erie
   and establishing standards for wind energy procured therefrom

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Legislative  findings  and intent. The legislature hereby
 finds and determines:
   1. New York is  a  national  leader  in  developing  and  implementing
 climate  policy  and  promoting  the  development  of  renewable  energy
 resources.
   2. To further the state's climate change  goals  and  to  promote  and
 incentivize  the development of renewable energy, New York state adopted
 the Climate Leadership and  Community  Protection  Act  (CLCPA),  which,
 among  other  things,  mandates  that  New  York have fully, one hundred
 percent zero-emission electricity by 2040, with a target of absolute net
 zero emissions by 2050.
   3. Achieving the CLCPA milestones with respect to zero-emission  elec-
 tricity  and  decarbonization may not be possible without harnessing the
 wind resources over the Great Lakes. Given the lengthy timelines associ-
 ated with new offshore wind developments, an expedited pilot project  to
 fully assess the viability of such development is crucial to ensure that
 the resource is available when needed.
   4.  In  order  to initiate such a pilot project in a timely manner, it
 will be beneficial for the state agencies having jurisdiction, under the
 leadership and direction of the governor, to coordinate efforts  with  a
 common goal - compliance with the CLCPA.
   5.  The  pilot project will provide valuable data for future projects,
 as well as serve to develop  a  reasonable  and  predictable  path  from
 concept  to  applications,  approvals  and  implementation for companies

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10987-02-3
              

 S. 7035                             2
 
 expressing an interest in offshore wind energy production in New  York's
 Great Lakes.
   §  2.  Pilot  solicitation.  1. The New York state energy research and
 development authority (NYSERDA) is hereby  authorized  and  directed  to
 issue  a solicitation for the procurement of up to two hundred megawatts
 of offshore wind renewable  energy  certificates  (ORECs)  generated  by
 offshore  wind  located  in  Lake Erie (hereinafter the "pilot solicita-
 tion").
   2. The pilot solicitation shall take similar form and structure to the
 most recent solicitation NYSERDA issued for Atlantic Ocean offshore wind
 development (ORECRFP22-1), including the requirement that  the  competi-
 tively selected project (hereinafter the "Lake Erie project") enter into
 a  contract to sell ORECs to NYSERDA, and for NYSERDA to buy those ORECs
 on behalf of New York's electric ratepayers statewide, with  appropriate
 modifications  given  the differences between salt water and fresh water
 offshore development. The pilot solicitation shall include a requirement
 that the selected developer enter into at least one project labor agree-
 ment consistent with the optional process and terms for  such  agreement
 included  in  ORECRFP22-1.  As  used  in this section, the term "project
 labor agreement" shall mean a single  collective  bargaining  agreement,
 including  a  pre-hire  agreement,  covering  both  contractors  in  the
 construction industry working on a project and a bona fide building  and
 construction trade labor organization representing the craft workers.
   3.  The  public  service commission shall issue any necessary order to
 require the purchase of Lake Erie-produced ORECs  from  NYSERDA  by  New
 York's  load  serving entities, similar to the existing process in place
 for Atlantic Ocean offshore  wind  development;  along  with  any  other
 orders  or  regulations it deems appropriate to support the pilot solic-
 itation.
   4. All other state agencies, including but not limited to  the  office
 of  general  services,  shall  make any necessary efforts to support the
 success of the competitively selected  Lake  Erie  project  selected  to
 satisfy the pilot solicitation.
   5. NYSERDA shall issue the pilot solicitation no later than six months
 after the effective date of this act.
   6.  Notwithstanding  any  provision  of law, rule or regulation to the
 contrary, the provisions of this act shall be deemed  to  eliminate  any
 potential  need  for  approval by the public service commission prior to
 NYSERDA's issuance of the pilot solicitation.  However,  if,  after  the
 issuance of the pilot solicitation, NYSERDA believes it will further the
 achievement  of  the  CLCPA  to  issue  subsequent solicitations for the
 development of offshore wind generation  in  Lake  Erie,  NYSERDA  shall
 follow  its  typical  process,  including  but  not limited to gathering
 stakeholder input and petitioning  the  public  service  commission  for
 authorization  to procure additional Lake Erie-based offshore wind ener-
 gy.
   7. Pursuant to subdivision 2 of this section,  NYSERDA  shall  require
 that  any  bid meet the following conditions in order to be awarded such
 contract:
   (a) Any such project undertaken pursuant to the pilot solicitation  in
 subdivision 2 of this section shall be deemed public work and subject to
 and  performed  in  accordance  with  articles 8 and 9 of the labor law.
 Each project undertaken pursuant to the pilot solicitation  in  subdivi-
 sion  2 of this section shall contain a provision that such projects may
 only be   undertaken   pursuant   to a project  labor  agreement.    For
 purposes  of  this section, "project   labor   agreement"   shall mean a
 S. 7035                             3
 
 pre-hire collective bargaining agreement between  NYSERDA,  or  a  third
 party    on    behalf    of    NYSERDA,    and  a bona fide building and
 construction trade labor organization establishing the  labor  organiza-
 tion  as  the  collective  bargaining representative for all persons who
 will perform work on  a  public  work project, and which  provides  that
 only contractors and subcontractors who sign  a pre-negotiated agreement
 with  the  labor  organization can perform project work. All contractors
 and subcontractors  associated  with  this work  shall   be required  to
 utilize  apprenticeship agreements as defined by article 23 of the labor
 law.
   (b) NYSERDA shall include requirements  in  any procurement or  devel-
 opment  of such project  that the components and parts shall be produced
 or made in whole or substantial part in    the    United    States,  its
 territories    or possessions.   NYSERDA's president and chief executive
 officer, or his or her designee, may waive the procurement and  develop-
 ment   requirements  set forth in this paragraph if such official deter-
 mines that: the requirements would not be in the  public  interest;  the
 requirements  would result in unreasonable costs; obtaining such infras-
 tructure  components and  parts  in   the United States  would  increase
 the  cost  of such project by an unreasonable amount; or such components
 or  parts cannot be produced, made, or assembled in the United States in
 sufficient and reasonably available quantities or of satisfactory quali-
 ty. Such determination must be made on an annual  basis no  later   than
 December  thirty-first,  after  providing  notice and an opportunity for
 public comment, and such determination shall be made publicly available,
 in  writing,  on  NYSERDA's website with a detailed  explanation  of the
 findings leading to such determination. If NYSERDA's president and chief
 executive officer, or his or her  designee,  has  issued  determinations
 for  three  consecutive  years finding  that no such waiver is warranted
 pursuant  to this paragraph, then NYSERDA shall no longer be required to
 provide the annual determination required by  this  paragraph.
   (c) (i) Nothing in this section shall alter the  rights  or  benefits,
 and  privileges,  including but not limited  to:  terms  and  conditions
 of  employment,  civil service   status,   and   collective   bargaining
 unit  membership,  of any current employees of NYSERDA.
   (ii)  Nothing  in this section shall  result  in:  (A)  the discharge,
 displacement,  or  loss of position, including partial displacement such
 as a reduction in the hours of non-overtime work, wages,  or  employment
 benefits;  (B)  the  impairment of existing collective bargaining agree-
 ments; (C) the transfer of existing duties and functions;  or  (D)   the
 transfer of future duties and functions, of any currently employed work-
 er  of the state or any agency, or public authority.
   § 3. This act shall take effect immediately.