Governor's Office - New York State
Advances New York's Commitment To Decarbonize Buildings Across the State. Designed To Demonstrate Innovative Alternatives to Meet Buildings' Heating and Cooling Needs.
Note: IDEA will be holding a one-day workshop in New York City, Best Practices in District Thermal Energy Networks on December 6, 2022 to focus on Best practices in District Energy System Design, Construction, deployment and Optimization to accelerate opportunities related to this legislation.
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Governor Kathy Hochul today announced that the New York State Public Service Commission initiated a proceeding to implement the Utility Thermal Energy Network and Jobs Act, which will advance efforts to decarbonize buildings across the state. Implementation of this law will reduce greenhouse gas emissions by allowing for the creation of utility-scale infrastructure projects that connect multiple buildings into a shared thermal network. Utility thermal networks present an opportunity for utilities to provide thermal energy to customers rather than fossil-based natural gas to meet their space heating, water heating, and cooling needs.
"Ahead of Climate Week, New York is taking a bold step to further support the use of clean-energy technology," Governor Hochul said. "Buildings are the largest source of greenhouse gas emissions in New York State - accounting for 32 percent of overall emissions - and the Utility Thermal Energy Network and Jobs Act will help significantly reduce climate change emissions and create greener, healthier places to live and work across the Empire State."
In addition to creating the regulatory framework for the thermal energy network, the New York Public Services Commission (PSC) will work to ensure the development of and access to well-trained, highly skilled trade persons needed to support timely, reliable, high-quality thermal energy network projects and promotes good jobs for New Yorkers in the expanding decarbonization sector.
As part of this process, the PSC will require the seven largest, investor-owned utilities — Consolidated Edison Company of New York, Inc., Orange and Rockland Utilities, Inc., New York State Electric & Gas Corporation, Rochester Gas and Electric Corporation, National Grid USA (Niagara Mohawk Power Corporation d/b/a National Grid, The Brooklyn Union Gas Company d/b/a National Grid NY, and KeySpan Gas East Corporation d/b/a National Grid), Central Hudson Gas & Electric Corporation, and National Fuel Gas Distribution Corporation — to each submit up at least one and up to five proposed thermal network pilot projects for review, with at least one pilot project located in a disadvantaged community within each utility service territory. The PSC will also establish a thermal-energy networks working group to assist the utilities in the development of pilot project proposals prior to submission to the PSC for review and to develop proposed rules and regulations for utility thermal service.