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Tier 1 REC Voluntary Sales

 

Following the Order Modifying Clean Energy Standard Tier 1 Obligations [PDF], NYSERDA will sell Tier 1 renewable energy certificates (RECs) to voluntary purchasers using a hybrid approach for the voluntary sales program which includes long-term contracting, an annual Tier 1 REC Pre-Sale, and an annual Tier 1 REC Re-Sale.

Reasons to Voluntarily Purchase Tier 1 RECs

Voluntary Tier 1 RECs are a flexible and accessible option for any corporation or organization to reduce their carbon footprint and support renewable energy development in New York State. This approach will provide direct benefits to the State's clean energy transition.

How It Works: Three Voluntary Sales Approaches

In accordance with the Phase 5 Implementation Plan [PDF] filed on August 30, 2023, NYSERDA has been authorized to engage in 3 types of voluntary sales approaches for Tier 1 RECs.

1. Long-Term Contracting

NYSERDA may enter into long-term contracts with creditworthy entities for the purchase of Tier 1 RECs. The terms and conditions of the contracts will include, but will not be limited to contract length, Tier 1 REC quantity, Tier 1 REC price, and payment terms.

The terms and conditions will be memorialized within the individual contracts. Under any long-term contract, participants would be required to purchase Tier 1 RECs at the NYSERDA net-weighted average price, plus any administrative adder approved by the Commission for that compliance year.

Contact [email protected] for information on Long-Term Contracts.

2. Annual Tier 1 Pre-Sale

NYSERDA will hold an annual Pre-Sale in July/August prior to the start of the next Tier 1 Compliance year, with delivery of the Tier 1 RECs in February following the end of the calendar year. Through this Pre-Sale, NYSERDA will offer a percentage of the net expected Tier 1 REC inventory for the following compliance year for sale. For example, the first Tier 1 compliance year under this new approach will be 2025, the first Tier 1 Pre-Sale will occur in August 2024 based on a projection of VDER and NYSERDA Tier 1 RECs described above, and it will offer a percentage of the net expected Tier 1 REC inventory for 2025.

NYSERDA will announce the quantity of Tier 1 RECs available for sale, Pre-Sale price, and Pre-Sale process no later than July 15 each year, through the end of the existing Tier 1 program. The sale will conclude 14 days after its commencement. NYSERDA will deliver the Tier 1 RECs to purchasers in approximately February of the year following the vintage sold. For example, vintage 2025 Tier 1 RECs will be delivered February 2026.

NYSERDA will set a Tier 1 REC price each year which will be based upon the forecasted net-weighted average price of the projected Tier 1 REC inventory that NYSERDA will place for sale.

NYSERDA will allocate Tier 1 RECs equal to an organizations REC order if the total demand ordered is less than the total inventory of RECs available. If total demand is greater than total inventory, a proportionate share of an organization’s order will be allocated.

Participation

The Annual Tier 1 Pre-Sale is open to all corporations and organizations. To participate, a purchaser will be required to have a NYSERDA Customer Number as well as a New York Generation Attributes Tracking System (NYGATS) account. A purchaser must, one time, notify both NYSERDA and NYGATS to be a REC Sale Participant.

Get a NYSERDA Customer Number [PDF]

Register for a NYGATS account

Contact NYSERDA to be a REC Sale Participant

Contact NYGATS admin to be a REC Sale Participant

3. Annual Tier 1 Re-Sale

NYSERDA can hold a Tier 1 REC Re-Sale at the end of each compliance year if there is sufficient demand for such and NYSERDA has a sufficient volume of Tier 1 RECs.

NYSERDA may hold an annual Re-Sale in February following the end of the calendar year. At the end of the compliance year, NYSERDA will announce the Voluntary Re-Sale for Tier 1 RECs, which will conclude 14 days after its commencement.

NYSERDA will set a Tier 1 REC price each year which will be based upon the net-weighted average price of the total Tier 1 REC inventory that NYSERDA possesses at the time of the sale. Please note, NYSERDA may not have the full Tier 1 REC inventory at the time of the sale.

NYSERDA will allocate Tier 1 RECs equal to an organization’s REC order if the total demand ordered is less than the total inventory of RECs available. If total demand is greater than total inventory, a proportionate share of an organization’s order will be distributed.

Participation

The Annual Tier 1 Re-Sale is open to all corporations and organizations. If you have never registered to participate in Voluntary REC Sales before, you will be required to have a NYSERDA Customer Number as well as a New York Generation Attributes Tracking System (NYGATS) account. A purchaser must, one time, notify both NYSERDA and NYGATS to be a REC Sale Participant.

Get a NYSERDA Customer Number [PDF]

Register for a NYGATS account

Contact NYSERDA to be a REC Sale Participant

Contact NYGATS admin to be a REC Sale Participant

Frequently Asked Questions

Tier 1 REC Voluntary Sale FAQs

  1. May any organization participate in NYSERDA Voluntary REC Sales?
    • Yes, NYSERDA Voluntary REC Sales are open to all.
  2. What requirements must be met to participate in Voluntary REC Sales?
    • All organizations must have a NYSERDA Customer Number as well as a New York Generation Attributes Tracking System (NYGATS) account. An organization must perform a one-time notice to both NYSERDA and NYGATS to opt-in to be a REC Sale Participant. More information on participation requirements can be found on the Tier 1 REC Voluntary Sale webpage.
  3. Can Voluntary RECs be used for CES RES Compliance?
    • NO. The NY Tier 1 RECs purchased in NYSERDA Voluntary REC Sales cannot be used for CES RES Compliance.
  4. Are the Tier 1 RECs available in NYSERDA Voluntary REC Sales compliant with Local Law 97?
    • NYSERDA recommends you discuss the details of complying with Local Law 97 with the New York City Department of Buildings.
  5. What renewable energy resources are the Tier 1 RECs available in NYSERDA Voluntary REC Sales procured from? Can I request a specific resource of RECs?
    • NY Tier 1 RECs are sourced from Solar, Wind, and Hydropower generation. If your organization is interested in RECs from a specific resource, your request may be considered for a Long-Term contract. For more information on Long-Term contacts, please reach out to us at [email protected].
  6. How does purchasing Tier 1 RECs from NYSERDA benefit organizations and the environment?
    • By buying Tier 1 RECs from NYSERDA, organizations can support local renewable energy projects, claim additional benefits, and contribute to New York State meeting its clean energy goals outlined in the Climate Leadership and Community Protection Act (CLCPA).
  7. Can organizations claim environmental benefits from purchasing Tier 1 RECs in NYSERDA Voluntary REC Sales?
    • Yes, organizations can claim the environmental benefits associated with the renewable energy production represented by the Tier 1 RECs purchased, aiding in reducing carbon emissions and supporting sustainable energy practices in New York.
  8. What are the bankability terms for the Tier 1 RECs purchased from NYSERDA Voluntary REC Sales?
    • Tier 1 RECS purchased through NYSERDA Voluntary REC Sales can be banked for future use indefinitely. However, for EDP purposes, these Tier 1 RECs lose their EDP eligibility at the end of their compliance year in terms of the vintage year of the REC.
  9. What transferability properties do the Tier 1 RECs sold in NYSERDA Voluntary REC Sales possess?
    • Tier 1 RECs purchased in NYSERDA Voluntary REC Sales can be transferred to any account holder within NYGATS.
  10. Where can I find vintage year specific, NYSERDA Voluntary REC Sale details?

Connect With Us

Learn more about how to participate in the Voluntary REC Sales Program.
Get in touch at [email protected].