2018 Compliance Year
This page includes information on the 2018 compliance year under the Clean Energy Standard (CES). It also includes REC and ZEC activities that affect LSEs during and after the 2018 compliance year, which differs for RECs and ZECs.
Renewable Energy Standard 2018 Compliance
The Renewable Energy Standard (RES) 2018 compliance year for Tier 1 RECs begins on January 1, 2018 and ends on December 31, 2018.
For the first time, NYSERDA will sell Tier 1 RECs to LSEs on a quarterly basis, as available. At the end of every quarter, NYSERDA will announce a sale of Tier 1 RECs. These sales will include 2018 Tier 1 RECs and any unpurchased Tier 1 RECs from 2017.
|Trading Period||Date Range for Tier 1 REC Sale Announcement|
|Q1||March 31 – April 10, 2018|
|Q2||June 30 – July 10, 2018|
|Q3||September 30 – October 10, 2018|
|Q4||December 31, 2018 – January 10, 2019|
The sale will conclude with 28 days after each announcement.
NYSERDA will offer Tier 1 RECs for sale in the 2018 compliance year for $17.01/MWh. LSEs may be able to purchase 2017 Tier 1 RECs during the 2018 compliance year if unpurchased 2017 Tier 1 RECs are available. The price for 2017 Tier 1 RECs will remain $21.16/MWh. Please note that 2018 Tier 1 RECs cannot be used for 2017 compliance year.
If an LSE is unable to generate or purchase 2017 or 2018 Tier 1 RECs, LSEs can fulfill their 2018 Tier 1 REC compliance by making an alternative compliance payment (ACP) to NYSERDA.
The 2018 ACP costs $18.71 for each megawatt-hour of renewable energy an LSE is unable to generate or purchase through 2018 Tier 1 RECs. LSEs will have the option of making ACPs after NYSERDA and the LSEs have reconciled the REC obligations in 2019.
Additionally, any 2018 Tier 1 RECs that remain unpurchased after the end of the compliance year will be banked by NYSERDA and may be available for purchase in future compliance years.
Quarterly Sales and Allocation
Based on NYSERDA’s procurement of long-term renewable energy projects, NYSERDA anticipates having sufficient Tier 1 RECs available every quarter. However, if the amount of Tier 1 RECs does not meet expectations, NYSERDA may not hold a quarterly sale. Any Tier 1 RECs that are not sold in one quarter will be made available in the next sale. Both 2017 and 2018 Tier 1 RECs will go on sale at the same time, and LSEs may make a single request to purchase both 2017 and 2018 Tier 1 RECs. However, NYSERDA will review and process 2017 Tier 1 RECs and 2018 Tier 1 RECs independently based on the right of first refusal (ROFR).
The quarterly allocation of both 2017 and 2018 Tier 1 RECs will consist of two major steps:
- Each LSE will be allocated a ROFR quantity based upon its most recent annual load share. LSEs will have the opportunity to purchase any quantity of Tier 1 RECs up to the ROFR.
- If there are any remaining RECs after the ROFR requests have been satisfied, they will be allocated to LSEs proportionally based on the number of RECs requested above their ROFR quantity.
After NYSERDA announces the quarterly sale, LSEs will use NYGATS to request Tier 1 RECs from NYSERDA for each quarterly sale. To facilitate this new process, NYGATS will:
- Provide information about each LSE’s REC balance by compliance year
- Facilitate transfer of RECs from NYSERDA to participating LSEs
- Facilitate invoicing and payment transfers
- Incorporate information on LSEs’ load share and Tier 1 REC obligation quantities
Trainings and Webinars
NYSERDA will develop training materials and webinars to demonstrate the new NYGATS capabilities and provide information on the 2018 processes. NYSERDA will announce these resources over email post them on the How to Use NYGATS page when available.
ZEC 2018 Compliance
The Zero-Emission Credit (ZEC) 2018 compliance year began on April 1, 2018 and ends on March 31, 2019. 2018 compliance year ZECs cost $17.48 per megawatt-hour and a maximum of 27,618,000 ZECs purchased by NYSERDA and allocated to the LSEs. After the ZEC 2018 compliance year ends, NYSERDA and the LSEs will reconcile ZEC obligations to include the number of ZECs purchased by NYSERDA and the LSE’s load share.