With the establishment of the Clean Energy Standard [PDF] (CES), load serving entities (LSEs) may purchase renewable energy credits (RECs) and must purchase zero-emissions credits (ZECs) from NYSERDA.
Renewable Energy Credits
The first REC compliance year begins on January 1, 2017 and ends on December 31, 2017.
The New York Public Service Commission (the PSC) approved the terms and conditions of the Agreement for the Sale of Renewable Energy Certificates in an order dated November 17, 2016 [PDF] that will be used for NYSERDA's REC transactions with all LSEs.
NYSERDA offered 56,142 Tier 1 RECs for sale in the 2017 compliance year. 2017 Tier 1 RECs purchased from NYSERDA costs $21.16 per megawatt-hour. The period for purchasing RECs from NYSERDA ended on December 1, 2016. On December 8, 2016, NYSERDA confirmed the REC quantity and the payment schedule in accordance with the terms and conditions for the sale for those LSEs who elected to purchase RECs from NYSERDA. NYSERDA may offer additional Tier 1 RECs for sale in 2017.
In the absence of procuring 2017 Tier 1 RECs, LSEs may also fulfill their 2017 RES compliance obligation by making an alternative compliance payment (ACP) to NYSERDA. The 2017 ACP costs $23.28 for each megawatt-hour of renewable energy an LSE is unable to generate or purchase through 2017 Tier 1 RECs.
More details on RECs and ACP are available in NYSERDA's November 1, 2016 compliance filing [PDF] to the PSC. Additionally, NYSERDA has prepared the following FAQs for LSEs with more specific questions on RES obligations and NYSERDA Tier 1 REC sales. LSEs and other participants were invited to discuss RES and ZEC obligations during a CES webinar held on November 22, 2016 that was hosted by NYSERDA and the Department of Public Service.
The Clean Energy Standard obligates LSEs in New York State to purchase zero-emission credits (ZECs) from NYSERDA every year. This annual obligation is based on an LSE’s proportional amount of statewide load in a given compliance year. The first ZEC compliance year begins on April 1, 2017 and ends on March 31, 2018.
NYSERDA will offer a maximum of 27,618,000 ZECs for sale in the first compliance year.
The PSC approved the terms and conditions for the Agreement for the Sale of Zero-Emissions Energy Certificates in an order dated November 17, 2016 [PDF]. NYSERDA will use the approved terms and conditions for ZEC transactions with LSEs. The PSC has directed all LSEs to provide NYSERDA with executed copies of the standard ZEC contract attached to the November 17, 2016 order by December 19, 2016.
NYSERDA contacted all LSEs directly via email on December 7, 2016 informing each LSE with their individual quantity obligation, confirmation ID, price, and provided instructions on how to electronically accept the ZEC agreement terms and conditions. After December 19, 2016, NYSERDA will send each LSE a confirmation email that includes the payment schedule.
At the end of the compliance year for each program, NYSERDA will transfer ownership of fully paid REC and ZEC certificates to LSEs through the New York Generation Attribute Tracking System (NYGATS). LSEs will need an active NYGATS account to view and accept these transfers and to demonstrate compliance with the Clean Energy Standard.