A 11645: Enacts the "just energy transition act"; requires a study of competitive options to facilitate the phase-out, replacement and redevelopment of New York state's oldest and most-polluting fossil fueled generation facilities and their sites by the year 2030.

  
  STATE OF NEW YORK ________________________________________________________________________ 11645  IN ASSEMBLY July 29, 2026 ___________ Introduced by COMMITTEE ON RULES -- (at request of M. of A. Kelles, Zinerman, Steck, Simon, Simone, Alvarez, Gonzalez-Rojas, Colton, Levenberg, Shrestha, Stirpe, Rosenthal, Reyes, Cunningham, Cruz, Raga, De Los Santos, Stern, Jacobson, Otis, Rozic, Rajkumar, Kim, Anderson, Glick, Shimsky, Lunsford, Barrett, Seawright, Bichotte Hermelyn, Santabarbara, Taylor, Clark, Paulin, Lavine, R. Carroll, Forrest, Slater, Eachus, Sayegh, Magnarelli, Woerner, Weprin, K. Brown, Hunter, Benedetto, Jackson, Zaccaro, Rivera, Tapia, Meeks, Bores, Lee, Hevesi, Bronson, Burke, Davila, Dilan, Williams, Beephan, Gallagher, Burdick, Gibbs, Septimo, Conrad, Blumencranz, Lupardo, McMahon, Durso, Walker, Pheffer Amato) -- read once and referred to the Committee on Energy AN ACT enacting the "just energy transition act" The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Short title. This act shall be known and may be cited as 2 the "just energy transition act". 3 § 2. Legislative findings and statement of purpose. The legislature 4 hereby finds, determines and declares: 5 (a) New York state, especially New York city, is reliant on fossil 6 fuels for energy production, making the transition to renewable sources 7 for the downstate electricity system key to achieving the requirements 8 of section 4 of the New York state climate leadership and community 9 protection act, including that seventy percent of the state's electric- 10 ity be from renewable energy sources by the year 2030 and that one 11 hundred percent of the state's electricity be from zero-emission sources 12 by the year 2040. 13 (b) New York state is committed to the responsible replacement and 14 redevelopment of its fossil fueled generation facilities that currently 15 ensure resource adequacy in the state, especially in locations where the 16 health benefits to historically disadvantaged communities can be maxi- 17 mized, and where the cost effective phasing-out of such facilities can 18 be done while helping to ensure a just transition for the existing work- 19 force. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD01714-06-6 
 A. 11645 2 1 (c) A public policy purpose would be served and the interests of the 2 people of the state would be advanced by directing the New York state 3 energy research and development authority, in consultation with the 4 department of public service and the department of environmental conser- 5 vation, to continue the development of the study commenced in 2022, as 6 referenced in the climate action council scoping plan of strategies to 7 facilitate the replacement and redevelopment of New York's oldest and 8 most-polluting fossil fueled generation facilities and their sites by 9 2030, while ensuring resource adequacy, with renewable energy systems as 10 defined in paragraph (b) of subdivision 1 of section 66-p of the public 11 service law, energy storage systems, and electricity transmission and 12 distribution systems and equipment. 13 (d) It is the intent of the legislature in enacting this act to 14 empower the New York state energy research and development authority, 15 department of public service, and department of environmental conserva- 16 tion, to develop a study as described in the climate action council 17 scoping plan and paragraph (c) of section three of this act in the 18 manner authorized and directed herein, and for those entities and the 19 public service commission, and any other agencies or authorities of the 20 state as may be required, to commence any proceedings or other initi- 21 atives necessary to carry out the strategies described therein. 22 § 3. The New York state energy research and development authority is 23 authorized and directed to: 24 (a) develop a study of competitive options to facilitate the phase- 25 out, replacement and redevelopment of New York state's oldest and most- 26 polluting fossil fueled generation facilities and their sites by the 27 year 2030, with renewable generation options that include those 28 described in the scoping plan issued by the climate action council under 29 section 75-0103 of the environmental conservation law, renewable energy 30 systems as defined in paragraph (b) of subdivision 1 of section 66-p of 31 the public service law, energy storage systems, distributed energy 32 resources and electric bulk transmission systems and equipment, while 33 ensuring resource adequacy and other reliability services are main- 34 tained, and to do so in consultation with the department of public 35 service, the department of environmental conservation, Long Island power 36 authority, and other relevant state agencies and authorities with 37 subject matter expertise, the federally designated electric bulk system 38 operator, the New York State Reliability Council, and the owners of such 39 facilities. The study should prioritize the replacement and redevelop- 40 ment of such fossil fueled generation facilities with facilities that 41 will directly assist in achieving the energy, environmental justice and 42 emissions reductions requirements of section 66-p of the public service 43 law. The study shall address the phase-out of at least four gigawatts of 44 fossil fueled generation statewide capacity in total and prioritize 45 those facilities that only operate when electricity usage is highest. 46 The study shall include recommendations of standards and requirements 47 that: 48 (i) significantly reduce the state's electricity system reliance on 49 fossil fuels related to bulk transmission, taking into account the 50 requirements and timing of the state's emission reduction programs; 51 (ii) establish a competitive program to promote private sector invest- 52 ment in eligible technologies that the public service commission has 53 determined, after notice and provision for the opportunity to comment, 54 ensure resource adequacy, while achieving the requirements of section 55 66-p of the public service law; 
 A. 11645 3 1 (iii) provide significant environmental, health and other benefits to 2 disadvantaged communities as such communities will be defined under 3 section 75-0111 of the environmental conservation law; and 4 (iv) have significant potential for job creation and retention, 5 economic development, and just transition opportunities benefiting New 6 Yorkers and the state's workforce, as described in the scoping plan 7 issued by the climate action council under section 75-0103 of the envi- 8 ronmental conservation law; and 9 (v) ensure the availability of assistance under the electric gener- 10 ation facility cessation mitigation fund established in section 1 of 11 part BB of chapter 58 of the laws of 2016 to any local government entity 12 impacted by the replacement and redevelopment of fossil fueled gener- 13 ation facilities under this section; 14 (b) provide public notice of the study, and ensure the results of 15 the study are made easily accessible to members of disadvantaged commu- 16 nities, as defined in section 75-0101 of the environmental conservation 17 law, and provide an opportunity for public comment on the study of not 18 less than 60 days and conduct at least two public hearings on the 19 study, of which at least one shall be held in disadvantaged communities, 20 as defined in section 75-0101 of the environmental conservation law with 21 such public hearings offering video participation and accessibility; 22 (c) address public comments and update the study, as appropriate, 23 especially to ensure resource adequacy and reliability services are 24 maintained; and 25 (d) deliver the study to the governor, temporary president of the 26 senate and speaker of the assembly within 180 days of the effective date 27 of this section. 28 § 4. The authority, is collaboration with the department of public 29 service, the department of environmental conservation, and Long Island 30 power authority, shall commence proceedings and stakeholder processes to 31 establish programs and other initiatives necessary to carry out the 32 strategies, programs, standards, and requirements described in the study 33 referred to in section three of this act within 60 days of delivery of 34 the study to the governor, temporary president of the senate and speaker 35 of the assembly. 36 § 5. The public service commission shall: 37 (a) commence a proceeding to implement the strategies, programs, stan- 38 dards, and requirements described in the study referred to in section 39 three of this act within 90 days of delivery of the study to the gover- 40 nor, temporary president of the senate and speaker of the assembly; and 41 (b) issue an order regarding implementation of the strategies, 42 programs, standards, and requirements described in the study referred to 43 in section three of this act no later than July 30, 2027. Such order 44 shall at a minimum: 45 (i) direct the New York state energy research and development authori- 46 ty to implement a competitive award process to facilitate the replace- 47 ment and redevelopment of at least four gigawatts of fossil fueled 48 generation facilities statewide while maintaining reliability consistent 49 with the recommendations of the study pursuant to section three of this 50 act, and that as part of such competitive award process, consideration 51 shall be given to security of offtake with respect to generation and 52 transmission; and 53 (ii) direct that with respect to the competitive award process 54 required, the only eligible electricity generation from hydroelectric 55 facilities shall be electricity that is generated from non-state-owned 
 A. 11645 4 1 low impact run-of-river facilities located in the state that provide a 2 year-round electricity capacity resource. 3 (c)(i) Any projects pursuant to this section, or the study provided 4 herein, shall be deemed public work and shall be subject to and 5 performed in accordance with articles 8 and 9 of the labor law. Each 6 contract for such project shall contain a provision that such project 7 shall only be undertaken pursuant to a project labor agreement. For 8 purposes of this section, "project labor agreement" shall mean a pre- 9 hire collective bargaining agreement between the New York state energy 10 research and development authority, a third party on behalf of the 11 authority, or a recipient of support under this section, and a bona fide 12 building and construction trade labor organization establishing the 13 labor organization as the collective bargaining representative for all 14 persons who will perform work on a public work project, and which 15 provides that only contractors and subcontractors who sign a pre-negoti- 16 ated agreement with the labor organization can perform project work. All 17 contractors and subcontractors associated with this work shall be 18 required to utilize apprenticeship agreements as defined by article 23 19 of the labor law. 20 (ii) The New York state energy research and development authority, or 21 public service commission, where appropriate, shall include requirements 22 in any procurement or development of a renewable energy generating 23 project, as defined in this subdivision, that the components and parts 24 shall be produced or made in whole or substantial part in the United 25 States, its territories or possessions. The New York state energy 26 research and development authority's president and chief executive offi- 27 cer, or their designee may waive the procurement and development 28 requirements set forth in this paragraph if such official determines 29 that: the requirements would not be in the public interest; the require- 30 ments would result in unreasonable costs; obtaining such infrastructure 31 components and parts in the United States would increase the cost of a 32 renewable energy generating project by an unreasonable amount; or such 33 components or parts cannot be produced, made, or assembled in the United 34 States in sufficient and reasonably available quantities or of satisfac- 35 tory quality. Such determination shall be made on an annual basis no 36 later than December thirty-first, after providing notice and an opportu- 37 nity for public comment, and such determination shall be made publicly 38 available, in writing, on the New York state energy research and devel- 39 opment authority's website with a detailed explanation of the findings 40 leading to such determination. If the New York state energy research and 41 development authority's president and chief executive officer, or their 42 designee, has issued determinations for three consecutive years finding 43 that no such waiver is warranted pursuant to this paragraph, then the 44 New York state energy research and development authority shall no longer 45 be required to provide the annual determination required by this para- 46 graph. 47 (d)(i) The commissioner of labor, in consultation with labor organiza- 48 tions, shall develop a comprehensive plan to transition, train, or 49 retrain employees that are impacted by projects undertaken pursuant to 50 this act, or the study provided in section three of this act. This plan 51 shall include a method of allowing displaced and transitioning workers, 52 including affected labor organizations, to notify the commissioner of 53 the loss of employment, their previous title, and previous wage rates 54 including whether they previously received medical and/or retirement 55 benefits. The plan shall require employers to notify the commissioner of 56 workers laid off or discharged due to this act. 
 A. 11645 5 1 (ii) The commissioner of labor shall create a program pursuant to 2 which, where applicable and feasible, newly created job opportunities 3 shall be offered to a pool of transitioning workers who have lost their 4 employment or will be losing their employment in the energy sector 5 through projects undertaken pursuant to this act, or the study provided 6 in section three of this act. Such program shall include a method for 7 the commissioner of labor to communicate names and contact information 8 for displaced or transitioning workers to public entities that may have 9 job opportunities for such workers every 90 days. 10 (e) Notwithstanding any provision of law to the contrary, all rights 11 or benefits, including terms and conditions of employment, and 12 protection of civil service and collective bargaining status of all 13 existing public employees and the work jurisdiction, covered job titles, 14 and work assignments, set forth in the civil service law and collective 15 bargaining agreements with labor organizations representing public 16 employees shall be preserved and protected. Nothing in this section 17 shall result in the: (i) displacement of any currently employed worker 18 or loss of position (including partial displacement as such a reduction 19 in the hours of non-overtime work, wages, or employment benefits) or 20 result in the impairment of existing collective bargaining agreements; 21 (ii) transfer of existing duties and functions related to maintenance 22 and operations currently performed by existing employees of authorized 23 entities to a contracting entity; or (iii) transfer of future duties and 24 functions ordinarily performed by employees of authorized entities to a 25 contracting entity. 26 § 6. The Long Island power authority shall establish a program or 27 programs in its service territory consistent with the recommendation of 28 the study conducted pursuant to section three of this act, the 29 provisions of section five of this act, and the objectives of this act. 30 § 7. This act shall take effect immediately.