NY State Senate Bill 2019-S452

Senate Bill S452

2019-2020 Legislative Session

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

download bill text pdf

Archive: Last Bill Status - In Senate Committee Energy And Telecommunications Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2020	referred to energy and telecommunications
Jun 20, 2019	committed to rules
Mar 28, 2019	advanced to third reading
Mar 27, 2019	2nd report cal.
Mar 26, 2019	1st report cal.317
Jan 09, 2019	referred to energy and telecommunications

Votes

- Mar 26, 2019 - Energy And Telecommunications Committee Vote
  S452
  
  8
  
  Aye
  
  0
  
  Nay
  
  1
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Energy And Telecommunications Committee Vote: Mar 26, 2019
      
      aye (8)
      
      Carlucci
      
      Funke
      
      Harckham
      
      Kennedy
      
      Metzger
      
      Ortt
      
      Parker
      
      Ritchie
      
      aye wr (1)
      
      Kavanagh

co-Sponsors

2019-S452 (ACTIVE) - Details

See Assembly Version of this Bill:: A2283
Current Committee:: Senate Energy And Telecommunications
Law Section:: Public Service Law
Laws Affected:: Amd §66-j, Pub Serv L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S7742, A9618
2021-2022: S2249
2023-2024: S3058

2019-S452 (ACTIVE) - Summary

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.

2019-S452 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S452

SPONSOR: HELMING
 
TITLE OF BILL:  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
agricultural waste

 
PURPOSE:

The purpose of this bill is to establish that in the event that the
amount of electricity produced by a customer-generator during the bill-
ing period exceeds the amount of electricity used by the customer-gener-
ator, the corporation shall apply a credit to the next bill for service
to farm waste generating equipment customer-generators at a rate of no
less than twelve cents per kilowatt hour.

 
SUMMARY OF PROVISIONS:

Section 1 sets forth the legislative intent of the bill, which is to
establish a minimum rate of compensation for the sale of electricity

generated by anaerobic digesters sold into the electric grid that can
only be superseded by a methodology that includes certain environmental
values and that supports the financial viability of these systems.

Section 2 amends paragraph (b) of subdivision 4 of section 66-j of the
public service law to establish that when a farm waste generating equip-
ment customer-generator produces an amount of electricity in excess of
the amount used by the customer-generator, the corporation must apply a
credit to the next bill for service at a rate of no less than twelve
cents per kilowatt hour.

Section 3 establishes the effective date.

 
JUSTIFICATION:

Anaerobic digesters located on New York dairy farms create critical
environmental attributes including, but not limited to, reducing methane
gas releases and abating nutrient contamination of nearby water sources.
While the state has invested significant funds into the establishment of
existing anaerobic digesters, the current rate of compensation is insuf-
ficient for the continued financial viability of many of these systems.
While compensation models under net metering and remote net metering
have attempted to meet this need, a higher rate of compensation is crit-
ical to the future viability of anaerobic digesters in New York State.

This legislation would establish a minimum rate of compensation for the
sale of electricity produced by anaerobic digesters into the electrical
grid.

Importantly, while the Public Service Commission is currently within a
regulatory proceeding that is meant to introduce a new rate methodology
for renewable energy generators including anaerobic digesters, this
legislation would supersede any new rate methodology applicable to anae-
robic digesters that does not support their financial viability and does
not assign environmental attributes that take into account fossil fuel
offset as well as the avoided emission of greenhouse gases from manure.

 
PRIOR LEGISLATIVE HISTORY:
2018: S.7742/A.9618-A referred to Energy.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
Immediately.

2019-S452 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    452
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 9, 2019
                                ___________
 
 Introduced  by  Sens.  HELMING, FUNKE, GALLIVAN, GRIFFO, RITCHIE -- read
   twice and ordered printed, and when printed to  be  committed  to  the
   Committee on Energy and Telecommunications
 
 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:
 
   Section  1.   Legislative Intent. It is the intent of this Legislature
 to support the ongoing financial  viability  of  farm  waste  generating
 equipment  customer-generators--more  commonly known as anaerobic diges-
 ters--in New York state. Anaerobic digesters located on New  York  dairy
 farms create critical environmental attributes including, but not limit-
 ed  to, reducing methane gas releases and abating nutrient contamination
 of nearby water sources.  The Legislature also  recognizes  that  legacy
 anaerobic digesters are not financially viable under the current compen-
 sation  methodology;  as such, legacy anaerobic digesters are at risk of
 closure. Any closures would undo the  significant  financial  investment
 made  by  the state of New York to install anaerobic digesters under the
 Clean Energy Fund program.  Closures would also put New York  behind  on
 meeting  greenhouse  gas emission reduction goals as set forth under the
 State Energy Plan, and behind on developing a clean,  distributed  grid.
 While  the  New  York  state  Public  Service Commission has initiated a
 proceeding to transition to a  compensation  methodology  based  on  the
 value  of  distributed  energy  resources, the implementation of the new
 methodology will not address the immediate financial need  of  existing,
 or  legacy, anaerobic digesters, or new digesters installed prior to the
 finalization of a meaningful value stack methodology that includes envi-

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

                                                            LBD01249-01-9

 S. 452                              2
 
 ronmental values attributed to the avoided use of electricity  generated
 by fossil fuels and the reduction of on-site greenhouse gas emissions.
   The Legislature hereby determines that the public interest requires an
 increase  in  the rate of compensation for customer-generators operating
 legacy anaerobic digesters, and new digesters  installed  prior  to  the
 finalization  of  a meaningful value stack methodology, which will apply
 to credit calculations  for  the  customer-generators'  bills  following
 implementation of this legislation.
   §  2.    Paragraph  (b) of subdivision 4 of section 66-j of the public
 service law, as amended by chapter 494 of the laws of 2014,  is  amended
 to read as follows:
   (b)  In the event that the amount of electricity produced by a custom-
 er-generator during the billing period exceeds the amount of electricity
 used by the customer-generator, the corporation shall apply a credit  to
 the  next  bill  for service to the customer-generator for the net elec-
 tricity provided at the  same  rate  per  kilowatt  hour  applicable  to
 service  provided  to other customers in the same service class which do
 not generate electricity onsite,  except  for  micro-combined  heat  and
 power  or fuel cell customer-generators [or farm waste generating equip-
 ment customer-generators as described in subparagraph (ix) of  paragraph
 (a)  of  subdivision  one  of this section], who will be credited at the
 corporation's avoided costs; PROVIDED, HOWEVER, THAT IN THE CASE OF FARM
 WASTE GENERATING EQUIPMENT CUSTOMER-GENERATORS,  THE  CORPORATION  SHALL
 APPLY  A  CREDIT TO THE NEXT BILL AT A RATE OF NO LESS THAN TWELVE CENTS
 PER KILOWATT HOUR. The avoided cost credit  provided  to  micro-combined
 heat  and power or fuel cell customer-generators [or farm waste generat-
 ing equipment customer-generators as described in subparagraph  (ix)  of
 paragraph  (a)  of subdivision one of this section] shall be treated for
 ratemaking purposes as a purchase of electricity in the market  that  is
 includable in commodity costs.
   § 3. This act shall take effect immediately.

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Senate Bill S452

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Sponsored By

Pamela Helming

Archive: Last Bill Status - In Senate Committee Energy And Telecommunications Committee

co-Sponsors

Rich Funke

Patrick M. Gallivan

Joseph A. Griffo

Patty Ritchie

2019-S452 (ACTIVE) - Details

2019-S452 (ACTIVE) - Summary

2019-S452 (ACTIVE) - Sponsor Memo

2019-S452 (ACTIVE) - Bill Text download pdf

Comments