New York Public Service Commission Faces Opposition on Large-Scale Renewable Program and Clean Energy Standard

As the state of New York continues to prioritize renewable energy and reduce its carbon footprint, the New York Public Service Commission (PSC) has issued a document soliciting comments on a proposal by the Long Island Power Authority (LIPA) to modify jurisdictional load serving entities' (LSEs') Tier 1 renewable energy credit (REC) obligations. However, environmental organizations, including the Natural Resources Defense Council, Sierra Club, Alliance for Clean Energy NY, and New York League of Conservation Voters, have come out in opposition to LIPA's petition.

Key Takeaways:

• The organizations are opposing LIPA's petition to modify Tier 1 REC obligations, citing concerns that it would undermine the effectiveness of the Clean Energy Standard (CES).
• The CES is a crucial component of New York's efforts to reduce its carbon footprint and achieve 6 GW of distributed solar energy by 2025.
• The organizations argue that the Commission's approach to allocating costs for Zero Emission Credits, Offshore Wind Renewable Energy Credits, and Tier 4 RECs is reasonable and prudent, and should not be deviated from.
• LIPA's proposal is premised on the assumption that distributed solar customers are overcompensated for the renewable power they provide, but the organizations argue that there is no evidence to support this claim.
• The Value of Distributed Energy Resource (VDER) compensation for rooftop solar will address any purported inequity, and therefore LIPA's petition is unnecessary.

Statistics:

• New York aims to achieve 6 GW of distributed solar energy by 2025 (Climate Leadership and Community Protection Act).
• The Commission has previously recognized that all New York electric customers benefit from the addition or retention of clean energy.
• The actual exercise of trying to parse benefits at the LSE level would be time-consuming and ultimately impossible to do with precision.

Sources:

• Case 15-E-0302: Proceeding on Motion of the Commission to Implement a Large-Scale Renewable Program and a Clean Energy Standard; Comments of Natural Resources Defense Council, Sierra Club, Alliance for Clean Energy NY, and New York League of Conservation Voters Regarding LIPA Tier 1 Proposal.
• Climate Leadership and Community Protection Act (CLCPA).
• October 27, 2020 Notice Soliciting Comments.