Bill Text: NY S02249 | 2021-2022 | General Assembly | Introduced


Bill Title: Relates to setting the rate of credit per kilowatt hour for farm waste generating equipment customer-generators, which includes the anaerobic digestion of agricultural waste; sets a rate for anaerobic digestion of agricultural waste to at least 12 cents per kilowatt hour.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2021-01-20 - REFERRED TO ENERGY AND TELECOMMUNICATIONS [S02249 Detail]

Download: New_York-2021-S02249-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          2249

                               2021-2022 Regular Sessions

                    IN SENATE

                                    January 20, 2021
                                       ___________

        Introduced  by  Sen. HELMING -- read twice and ordered printed, and when
          printed to be committed to the Committee on  Energy  and  Telecommuni-
          cations

        AN  ACT to amend the public service law, in relation to setting the rate
          of credit per  kilowatt  hour  for  farm  waste  generating  equipment
          customer-generators,  which  includes the anaerobic digestion of agri-
          cultural waste

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.   Legislative Intent. It is the intent of this Legislature
     2  to support the ongoing financial  viability  of  farm  waste  generating
     3  equipment  customer-generators--more  commonly known as anaerobic diges-
     4  ters--in New York state. Anaerobic digesters located on New  York  dairy
     5  farms create critical environmental attributes including, but not limit-
     6  ed  to, reducing methane gas releases and abating nutrient contamination
     7  of nearby water sources.  The Legislature also  recognizes  that  legacy
     8  anaerobic digesters are not financially viable under the current compen-
     9  sation  methodology;  as such, legacy anaerobic digesters are at risk of
    10  closure. Any closures would undo the  significant  financial  investment
    11  made  by  the state of New York to install anaerobic digesters under the
    12  Clean Energy Fund program.  Closures would also put New York  behind  on
    13  meeting  greenhouse  gas emission reduction goals as set forth under the
    14  State Energy Plan, and behind on developing a clean,  distributed  grid.
    15  While  the  New  York  state  Public  Service Commission has initiated a
    16  proceeding to transition to a  compensation  methodology  based  on  the
    17  value  of  distributed  energy  resources, the implementation of the new
    18  methodology will not address the immediate financial need  of  existing,
    19  or  legacy, anaerobic digesters, or new digesters installed prior to the
    20  finalization of a meaningful value stack methodology that includes envi-
    21  ronmental values attributed to the avoided use of electricity  generated
    22  by fossil fuels and the reduction of on-site greenhouse gas emissions.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04584-01-1

        S. 2249                             2

     1    The Legislature hereby determines that the public interest requires an
     2  increase  in  the rate of compensation for customer-generators operating
     3  legacy anaerobic digesters, and new digesters  installed  prior  to  the
     4  finalization  of  a meaningful value stack methodology, which will apply
     5  to  credit  calculations  for  the  customer-generators' bills following
     6  implementation of this legislation.
     7    § 2.  Paragraph (b) of subdivision 4 of section  66-j  of  the  public
     8  service  law,  as amended by chapter 494 of the laws of 2014, is amended
     9  to read as follows:
    10    (b) In the event that the amount of electricity produced by a  custom-
    11  er-generator during the billing period exceeds the amount of electricity
    12  used  by the customer-generator, the corporation shall apply a credit to
    13  the next bill for service to the customer-generator for  the  net  elec-
    14  tricity  provided  at  the  same  rate  per  kilowatt hour applicable to
    15  service provided to other customers in the same service class  which  do
    16  not  generate  electricity  onsite,  except  for micro-combined heat and
    17  power or fuel cell customer-generators [or farm waste generating  equip-
    18  ment  customer-generators as described in subparagraph (ix) of paragraph
    19  (a) of subdivision one of this section], who will  be  credited  at  the
    20  corporation's avoided costs; provided, however, that in the case of farm
    21  waste  generating  equipment  customer-generators, the corporation shall
    22  apply a credit to the next bill at a rate of no less than  twelve  cents
    23  per  kilowatt  hour.  The avoided cost credit provided to micro-combined
    24  heat and power or fuel cell customer-generators [or farm waste  generat-
    25  ing  equipment  customer-generators as described in subparagraph (ix) of
    26  paragraph (a) of subdivision one of this section] shall be  treated  for
    27  ratemaking  purposes  as a purchase of electricity in the market that is
    28  includable in commodity costs.
    29    § 3. This act shall take effect immediately.
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