New York State Department of Public Service Proposes Establishment of a Zero Emissions Energy Systems Program Under the Clean Energy Standard

Strategic Insights -

The New York State Department of Public Service has initiated a proceeding to establish a competitive program or tier under the Clean Energy Standard (CES) to encourage the development of zero emissions electric generating facilities. Independent Power Producers of New York, Inc., New York State Building & Construction Trades Council, and New York State AFL-CIO have petitioned the Public Service Commission to develop a new program to meet the state's 2040 Zero Emission Target, which requires the statewide electrical demand system to be zero emissions by 2040.

Key Takeaways:

  • The petitioners propose a competitive program to encourage private sector investment in a minimum of one gigawatt of zero emissions energy systems that would commence commercial operation by 2030.
  • The proposed program would define "zero emissions energy systems" as systems that generate electricity or thermal energy through the use of technologies that do not lead to a net increase in greenhouse gas emissions into the atmosphere at any time in the process of generating electricity.
  • The Commission has yet to update its CES to establish the 2040 Zero Emission Target part of the Program, which is required by the Climate Leadership and Community Protection Act (CLCPA).
  • Legislation, S.6497-A (Parker) / A.8094 (Cusick), passed the New York State Senate unanimously on June 9, 2021, and directed the Commission to establish a pilot program consistent with the provisions of the petition.
  • The CLCPA already gave the Commission the underlying legislative authority to establish the pilot program under this petition and the bill.
  • The petitioners strongly support the inclusion of quality-based contracting and labor provisions within the program, including prevailing wage, project labor agreements (PLA), and Buy American provisions, to promote successful project delivery and create good-paying union jobs.

Sources:

  • New York State Public Service Commission proceeding on Motion of the Commission to Implement a Case 15-E-0302 Large-Scale Renewable Program and a Clean Energy Standard
  • Climate Leadership and Community Protection Act (CLCPA)
  • S.6497-A (Parker) / A.8094 (Cusick) legislation
  • Petition of Independent Power Producers of New York, Inc., New York State Building and Construction Trades Council, and New York State AFL-CIO for the establishment of a zero emissions energy systems program under the Clean Energy Standard

Statistics:

  • 2040 Zero Emission Target: statewide electrical demand system to be zero emissions by 2040
  • 70% renewable energy systems to serve at least 70% of load in 2030 (the "70 by 30 Target")
  • 9 GW of offshore wind capacity by 2035
  • 6 GW of photovoltaic solar generation by 2025
  • 3 GW of energy storage resources by 2030
  • 50% of electricity consumed in New York by 2030 to be generated by renewable energy sources (the "50 by 30 goal")
  • 1 GW of zero emissions energy systems to commence commercial operation by 2030