Compliance

CES compliance is how New York State ensures that load serving entities (LSEs) are meeting their regulatory obligations under the Clean Energy Standard to purchase renewable energy certificates (RECs) and zero-emission credits (ZECs). Through the compliance process in New York Generation Attribute Tracking System (NYGATS), LSEs can reconcile their obligations with the RECs or ZECs they have purchased. Compliance processes for Tier 1 RECs and ZECs are similar, though they are on different timelines that correspond to the distinct Tier 1 REC and ZEC compliance years.

LSEs will use NYGATS to purchase Tier 1 RECs from NYSERDA, review subaccounts, accept and conduct transfers from other NYGATS accounts, transfer certificates to the appropriate subaccounts, and report on their compliance to the New York Department of Public Service (DPS).

Additionally, data in NYGATS is delayed by five months due to a lag in NYISO’s reporting process.

For more detailed information and instructions on the compliance process, please review LSE CES Compliance Guidance:

LSE CES Compliance Guidance [PDF]

RES Compliance

NYGATS provides LSEs with the Preliminary RES Compliance Report showing the status of their Tier 1 REC compliance to date. This summary provides the latest load information (with a 5-month lag), the estimated RES obligations, and the number of Tier 1 RECs in the LSE’s subaccounts: active, banked, and Environmental Disclosure Program (EDP), where RECs must be transferred to meet compliance. LSEs have until June 30 at 11:59 p.m. to acquire or transfer additional Tier 1 RECs for the previous compliance year, and any such changes and adjustments will be reflected in the Preliminary RES Compliance Report. If an LSE does not have sufficient Tier 1 RECs in its EDP subaccount, NYSERDA will invoice an LSE for the amount of alternative compliance payments (ACPs) needed to meet the LSE’s obligation. NYSERDA will update the LSE’s RES Compliance Report after processing ACP payments.

NYSERDA will notify LSEs when final load data is available for the previous compliance year. At that point, LSEs are instructed to review their Preliminary RES Compliance Reports to ensure the information reflected is accurate and to make any adjustments necessary to comply with their RES obligation. LSEs must sign off on Final RES Compliance Reports using NYGATS by August 31. Final Compliance Reports will be submitted to DPS, and any LSEs who do not meet all compliance obligations in NYGATS by that date will be contacted by DPS.

Timeline

RES Compliance Milestones

Date

End of RES Compliance Year

December 31

NYSIO load data from previous compliance year is available in NYGATS

Approximately May 15

LSEs manage Tier 1 REC obligation

June

Last day to trade Tier 1 RECs in NYGATS and of reconciliation period

June 30

Final LSE RES Compliance Report available in NYGATS

July

NYSERDA sends ACP invoice to LSEs

July

ACPs accepted using NYGATS

July-August

LSE accepts Final RES Compliance Report in NYGATS

August 31

 

Tier 2 Compliance

NYGATS also provides LSEs with a summary of Tier 2 REC obligations which shows the latest information on load for the compliance year, LSEs’ Tier 2 REC obligation, and the balance of Tier 2 RECs still needed to compliant.

Once NYISO data is available for the compliance year, NYSERDA will notify LSEs, which must then review and accept the LSE Tier 2 REC compliance filing in NYGATS.

Timeline

Tier 2 REC Compliance Milestones Date
End of Tier 2 Compliance Year December 31
NYISO load data from previous compliance year is available in NYGATS Approximately May 15
NYSERDA performs reconciliation process June/July
NYSERDA issues reconciliation invoices June/July
Final LSE Tier 2 REC Compliance Report available in NYGATS July/August

ZEC Compliance

NYGATS also provides LSEs with a summary of ZEC obligations which shows the latest information on load for the compliance year, the preliminary ZEC Rate and the Preliminary ZEC Charges. During the ZEC Reconciliation, the summary will be updated with the Final Load Served by the LSE during the compliance year, Final ZEC Rate, the Final ZEC Charges and the Yearly Reconciliation amount.

Timeline

ZEC Compliance Milestones

Date

End of Compliancy Year

March 31

NYSIO load data from previous compliance year is available in NYGATS

August

NYSERDA performs reconciliation process

September/October

NYSERDA issues reconciliation invoices

October

Final LSE ZEC Compliance Report available in NYGATS

October/November

Learn More

Visit NYSERDA’s NYGATS information page to learn more about using NYGATS.

Email ces@nyserda.ny.gov with questions regarding CES compliance.