BILL NUMBER: S1537
SPONSOR: PARKER
 
TITLE OF BILL:
An act in relation to maintaining the continued viability of the state's
existing large-scale, renewable energy resources
 
PURPOSE:
To amend the competitive tier 2 program within the Clean Energy Standard
and ensure that the state's existing renewable resources are maintained
and continue to contribute to the state's renewable energy goals.
 
SUMMARY OF PROVISIONS:
Section one of the bill provides the Legislative findings and intent of
the bill.
Section two defines various terms.
Sections three includes modifications to the Competitive Tier 2 Program.
Section four provides the effective date.
 
JUSTIFICATION:
Since the establishment of the Renewable Portfolio Standard (RPS) in
2004, New York has been a leader in renewable energy and reducing green-
house gas emissions.
Unfortunately, to date New York's programs are yet to value the carbon
reduction benefits of the state's existing renewable resources and as a
result these resources are selling their renewable energy credits
outside of New York or even retiring the asset at an alarming rate. As
more and more existing renewables exit New York, the state is falling
further behind in achieving the statutorily defined renewable targets of
2030 while the costs to ratepayers to replace these already existing
renewable resources increase.
In 2019, the Legislature acknowledged this mistreatment of existing
renewables and both houses passed legislation to create a truly support-
ive tier 2 program requiring NYSERDA to procure RECs from all eligible
existing renewable resources at a discounted rate (75%) of the current
Tier 1 REC price.
That proposed legislation rightfully recognized that to promote achieve-
ment of the Climate Leadership and Community Protection Act (CLCPA)
targets, and to ensure the continued job growth and other benefits
attendant to a clean energy economy, New York needs to assure that its
existing renewable resources are provided with adequate price signals
and financial incentives to remain in operation and to sell their renew-
able energy attributes in New York. While the legislation was ultimate-
ly vetoed by the Governor due to the Lack of competition within the
proposed program, the Governor did direct NYSERDA to begin proceedings
and to create a new, competitive Tier 2 program to finally recognize the
clean energy attributes the state's existing renewable resources
provide. In 2020, NYSERDA through the Public Service Commission Order on
the Clean Energy Standard created and recently announced the first
solicitation awards under the new competitive tier 2. Unfortunately, the
results of the first solicitation resulted in just 14 MW, of over 1,000
MW available, being awarded a contract and it was clear the new tier 2
program requires modifications.
This legislation is intended to modify NYSERDA's competitive Tier 2
program to ensure the state is in fact retaining the state's existing
renewables while ensuring New York can achieve their renewable energy
targets and do so in a manner that is most cost effective for New York's
ratepayers.
 
LEGISLATIVE HISTORY:
2023-24: S2468 -REFERRED TO ENERGY AND TELECOMMUNICATIONS
2021-22: S7027 - PASSED SENATE
 
FISCAL IMPLICATIONS:
None.
 
EFFECTIVE DATE:
Immediate.