Insights
NYPSC Set to Adopt Clean Energy Standard Aimed at 50% Renewables Goal
05.20.16
The New York State Energy Plan (“SEP”) calls for 50% of all electricity used in New York State by 2030 to be generated from renewable energy sources (the “50 by 30 Goal”). Additionally, the SEP sets aggressive 2030 targets for emissions (40% reduction in greenhouse gas from 1990 levels) and energy efficiency gains (23% reduction from 2012 levels of energy consumption in buildings). The State has set a long-term goal of decreasing carbon emissions by 80% by 2050.
At its June 2016 session, the New York Public Service Commission (“NYPSC”) is set to adopt a Clean Energy Standard (“CES”) designed to help meet these aggressive goals. As part of its consideration and meeting those goals, the NYPSC should consider factors to enhance the attainment of the CES.
In 2015, Governor Cuomo directed the New York Department of Public Service (“DPS”) to develop a CES to convert the SEP targets to mandated requirements, and to present the program to the NYPSC in June of 2016. Pursuant to this directive, the NYPSC ordered DPS Staff to develop a white paper on CES (the “White Paper”) and set forth a process for the NYPSC to consider the CES at its June 2016 session. The White Paper, which was issued on January 25, 2016, addresses four principal policy objectives:
- increase renewable electricity supply to achieve the 50 by 30 Goal;
- support construction of new renewable generation in New York State;
- prevent premature closure of upstate nuclear facilities; and
- promote the progress of the REV market objectives.
- all electric retail load serving entities (“LSEs”), both jurisdictional and non-jurisdictional entities, share the obligation of the CES mandate in proportion to their annual retail electricity sales;
- establishment of CES tiers to support new and existing renewable, with related eligibility requirements;
- demonstration of compliance through the use of tradable renewable energy credits (“RECs”) for renewable energy purchases and zero emission credits (“ZECs”) for purchases from qualified nuclear generation facilities;
- an alternative compliance payment mechanism for each CES tier to cap REC and ZEC prices;
- competitive long-term procurements by the New York State Energy Research and Development Authority (“NYSERDA”) and utilities to support project financing and reduce compliance costs;
- a method for disposition of procured RECs and ZECs; and
- triennial program assessments by the NYPSC.
- Resource Diversity
- Purchase Commitments
- Facilitating Project Finance