Senate Bill S7133

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7133
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                               April 1, 2025
                                ___________
 
 Introduced  by  Sen.  PARKER -- 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 enacting the
   "renewable natural gas standard act"
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Short  title. This act shall be known and may be cited as
 the "renewable natural gas standard act".
   § 2. The public service law is amended by adding a new section 66-x to
 read as follows:
   § 66-X. ESTABLISHMENT OF A RENEWABLE NATURAL GAS STANDARD.  1. (A) THE
 LEGISLATURE HEREBY FINDS THAT:
   (I) THE  CLIMATE  LEADERSHIP  AND  COMMUNITY  PROTECTION  ACT  (CLCPA)
 REQUIRES SIGNIFICANT REDUCTIONS IN GREENHOUSE GAS EMISSIONS, INCLUDING A
 FORTY  PERCENT  REDUCTION  IN  STATEWIDE GREENHOUSE GAS EMISSIONS BY TWO
 THOUSAND THIRTY AND AN EIGHTY-FIVE PERCENT REDUCTION IN STATEWIDE GREEN-
 HOUSE GAS EMISSIONS BY TWO THOUSAND FIFTY;
   (II) IN ORDER TO MEET THESE AGGRESSIVE TARGETS,  IT  IS  NECESSARY  TO
 FURTHER  DEVELOP  RENEWABLE  ENERGY SOURCES, INCLUDING RENEWABLE NATURAL
 GAS;
   (III) THE PRODUCTION OF RENEWABLE NATURAL GAS IS A DESIRABLE SOURCE OF
 RENEWABLE ENERGY BECAUSE IT CAPTURES METHANE OTHERWISE EMITTED INTO  THE
 ATMOSPHERE  FROM  VARIOUS  SOURCES OF WASTE, THEREBY REDUCING GREENHOUSE
 GAS REDUCTIONS;
   (IV) RENEWABLE NATURAL GAS IS AN IMPORTANT RENEWABLE ENERGY SOURCE  TO
 PAIR WITH MORE INTERMITTENT RESOURCES (SOLAR, WIND) BECAUSE IT IS READI-
 LY  AVAILABLE  AND CAN USE EXISTING NATURAL GAS INFRASTRUCTURE FOR RELI-
 ABLE STORAGE AND DELIVERY; AND
   (V) HARNESSING RENEWABLE NATURAL GAS AS A FUEL OPTION WILL ADVANCE THE
 ACHIEVEMENT OF THE CLCPA'S GREENHOUSE  GAS  EMISSIONS  REDUCTION  GOALS,

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11308-01-5
              

 S. 7133                             2
 
 RETAIN  EXISTING AND/OR CREATE NEW JOBS, STIMULATE THE LOCAL ECONOMY AND
 PROVIDE POTENTIAL ADDITIONAL REVENUE STREAMS FOR ENTITIES SUCH AS  LOCAL
 FARMERS AND MUNICIPALITIES.
   (B) THE LEGISLATURE THEREFORE DECLARES THAT:
   (I)  RENEWABLE  NATURAL  GAS CAN BE A CARBON-NEGATIVE RESOURCE AND ITS
 USE IS NECESSARY TO DECARBONIZE THE GAS DISTRIBUTION SYSTEM; AND
   (II) THE ESTABLISHMENT OF A RENEWABLE NATURAL  GAS  STANDARD  FOR  GAS
 CORPORATIONS  IS  REQUIRED  TO  ACCELERATE  THE DEVELOPMENT OF RENEWABLE
 NATURAL GAS IN NEW YORK AND SUPPORT THE ACHIEVEMENT OF THE CLCPA  GREEN-
 HOUSE GAS EMISSIONS REDUCTION GOALS.
   2. AS USED IN THIS SECTION:
   (A)  "BIOGAS"  MEANS  A  MIXTURE  OF  CARBON DIOXIDE AND HYDROCARBONS,
 PRIMARILY METHANE GAS, RELEASED FROM  THE  BIOLOGICAL  DECOMPOSITION  OF
 ORGANIC MATERIALS;
   (B)  "ENVIRONMENTAL ATTRIBUTE" MEANS ANY CREDITS, BENEFITS, OFFSETS OR
 ALLOWANCES, INCLUDING ALLOWANCES UNDER ALL APPLICABLE  TRADING,  COMPLI-
 ANCE, OR BUDGET PROGRAMS, OR ANY OTHER FEDERAL, STATE, OR REGIONAL EMIS-
 SION, RENEWABLE ENERGY, OR ENERGY CONSERVATION TRADING OR BUDGET PROGRAM
 ASSOCIATED WITH RENEWABLE NATURAL GAS;
   (C) "LIFE CYCLE GREENHOUSE GAS EMISSIONS" MEANS THE AGGREGATE QUANTITY
 OF GREENHOUSE GAS EMISSIONS RELATED TO THE FULL FUEL LIFE CYCLE, INCLUD-
 ING  ALL  STAGES OF FUEL AND FEEDSTOCK PRODUCTION AND DISTRIBUTION, FROM
 FEEDSTOCK GENERATION OR EXTRACTION THROUGH THE DISTRIBUTION AND DELIVERY
 AND USE OF THE FINISHED FUEL TO THE CUSTOMER;
   (D) "RENEWABLE ENERGY SOURCES" MEANS HYDROELECTRIC, GEOTHERMAL,  SOLAR
 PHOTOVOLTAIC,  WIND,  TIDAL,  WAVE,  BIOMASS,  BIOGAS  OR SIMILAR ENERGY
 SOURCES;
   (E) "RENEWABLE NATURAL GAS" MEANS ANY OF THE FOLLOWING PRODUCTS  PROC-
 ESSED  TO  MEET  PIPELINE QUALITY STANDARDS OR TRANSPORTATION FUEL GRADE
 REQUIREMENTS:
   (I) BIOGAS THAT IS UPGRADED TO MEET NATURAL GAS PIPELINE QUALITY STAN-
 DARDS SUCH THAT IT MAY BLEND WITH, OR SUBSTITUTE FOR,  GEOLOGIC  NATURAL
 GAS;
   (II)  HYDROGEN  GAS  PRODUCED  USING  RENEWABLE  ENERGY SOURCES AND/OR
 PRODUCED WITH A CARBON INTENSITY EQUAL TO OR LESS THAN TWO KILOGRAMS  OF
 CARBON  DIOXIDE  EQUIVALENT PRODUCED AT THE SITE OF PRODUCTION PER KILO-
 GRAM OF HYDROGEN PRODUCED; OR
   (III) METHANE GAS DERIVED FROM ANY COMBINATION OF BIOGAS, HYDROGEN GAS
 DERIVED FROM RENEWABLE ENERGY SOURCES OR WASTE CARBON DIOXIDE; AND
   (F) "RENEWABLE NATURAL GAS INFRASTRUCTURE" MEANS EQUIPMENT AND FACILI-
 TIES NECESSARY FOR THE PRODUCTION, PROCESSING, PIPELINE INTERCONNECTION,
 AND DISTRIBUTION OF RENEWABLE  NATURAL  GAS  BY  A  GAS  CORPORATION  TO
 CUSTOMERS.
   3.  NO  LATER THAN JANUARY FIRST, TWO THOUSAND TWENTY-SIX, THE COMMIS-
 SION SHALL ESTABLISH A PROGRAM TO REQUIRE THAT GAS CORPORATIONS  PROCURE
 RENEWABLE  NATURAL  GAS  FROM THIRD PARTIES, INCLUDING AFFILIATES OF THE
 GAS CORPORATION, FOR DISTRIBUTION TO NATURAL GAS CUSTOMERS. THE  PROGRAM
 SHALL  REQUIRE GAS CORPORATIONS TO PROCURE RENEWABLE NATURAL GAS TO MEET
 THE FOLLOWING TARGETS:
   (A) FOR EACH OF THE CALENDAR YEARS TWO THOUSAND TWENTY-SIX THROUGH TWO
 THOUSAND THIRTY, AT LEAST FIVE PERCENT OF THE  GAS  CORPORATION'S  TOTAL
 VOLUMETRIC PURCHASES SHALL BE RENEWABLE NATURAL GAS;
   (B) FOR EACH OF THE CALENDAR YEARS TWO THOUSAND THIRTY-ONE THROUGH TWO
 THOUSAND  THIRTY-FIVE,  AT  LEAST  TEN  PERCENT OF THE GAS CORPORATION'S
 TOTAL VOLUMETRIC PURCHASES SHALL BE RENEWABLE NATURAL GAS;
 S. 7133                             3
 
   (C) FOR EACH OF THE CALENDAR YEARS TWO THOUSAND THIRTY-SIX THROUGH TWO
 THOUSAND FORTY, AT LEAST FIFTEEN PERCENT OF THE GAS CORPORATION'S  TOTAL
 VOLUMETRIC PURCHASES SHALL BE RENEWABLE NATURAL GAS;
   (D)  FOR EACH OF THE CALENDAR YEARS TWO THOUSAND FORTY-ONE THROUGH TWO
 THOUSAND FORTY-FIVE, AT LEAST TWENTY PERCENT OF  THE  GAS  CORPORATION'S
 TOTAL VOLUMETRIC PURCHASES SHALL BE RENEWABLE NATURAL GAS; AND
   (E)  FOR EACH OF THE CALENDAR YEARS TWO THOUSAND FORTY-SIX THROUGH TWO
 THOUSAND FIFTY, AT LEAST TWENTY-FIVE PERCENT OF  THE  GAS  CORPORATION'S
 TOTAL VOLUMETRIC PURCHASES SHALL BE RENEWABLE NATURAL GAS.
   4.  IN ESTABLISHING THE PROGRAM SET FORTH IN SUBDIVISION THREE OF THIS
 SECTION, THE COMMISSION SHALL:
   (A) ADOPT COST RECOVERY MECHANISMS  TO  ALLOW  A  GAS  CORPORATION  TO
 RECOVER COSTS RELATED TO THE PURCHASE OF RENEWABLE NATURAL GAS AND COSTS
 RELATED  TO  RENEWABLE  NATURAL  GAS  INFRASTRUCTURE NECESSARY FOR A GAS
 CORPORATION TO COMPLY WITH THE TARGETS ESTABLISHED IN SUBDIVISION  THREE
 OF THIS SECTION;
   (B)  PROVIDE FOR THE TREATMENT OF ANY ENVIRONMENTAL ATTRIBUTES ASSOCI-
 ATED WITH THE PURCHASE OF RENEWABLE NATURAL GAS;
   (C) CONSIDER APPROPRIATE COST MITIGATION MEASURES;
   (D) PROVIDE FOR THE VERIFICATION OF RENEWABLE NATURAL GAS PROCURED  BY
 GAS CORPORATIONS;
   (E)  PROVIDE  FINANCIAL INCENTIVES RELATED TO THE PRODUCTION AND PROC-
 ESSING OF RENEWABLE NATURAL GAS TO ENTITIES THAT OWN NON-HAZARDOUS LAND-
 FILLS, DAIRY FARMS, WASTEWATER TREATMENT PLANTS AND FOOD WASTE  PROCESS-
 ING FACILITIES;
   (F)  DESIGN  THE  PROGRAM  IN  A MANNER TO MAXIMIZE THE DEVELOPMENT OF
 RENEWABLE NATURAL GAS IN NEW YORK STATE; AND
   (G) DESIGN THE PROGRAM IN A MANNER TO PROVIDE  BENEFITS  TO  DISADVAN-
 TAGED  COMMUNITIES,  AS  DEFINED IN ARTICLE SEVENTY-FIVE OF THE ENVIRON-
 MENTAL CONSERVATION LAW, TO THE EXTENT PRACTICABLE.
   5. GAS CORPORATIONS SHALL, TO THE EXTENT PRACTICABLE,  PRIORITIZE  THE
 PROCUREMENT  OF  RENEWABLE  NATURAL  GAS  FROM  NON-HAZARDOUS LANDFILLS,
 FARMS, WASTEWATER TREATMENT PLANTS AND FOOD WASTE PROCESSING FACILITIES.
   6. IN THE EVENT A GAS CORPORATION IS NOT ABLE TO PROCURE THE VOLUME OF
 RENEWABLE NATURAL GAS IN ANY CALENDAR YEAR NECESSARY TO COMPLY WITH  THE
 TARGETS ESTABLISHED IN SUBDIVISION THREE OF THIS SECTION, THE GAS CORPO-
 RATION  MAY  PETITION THE COMMISSION FOR A WAIVER OF THE REQUIREMENTS OF
 SUBDIVISION THREE OF THIS SECTION FOR THAT CALENDAR YEAR. THE COMMISSION
 SHALL GRANT A WAIVER PURSUANT TO THIS SUBDIVISION IF THE GAS CORPORATION
 DEMONSTRATES THAT (A) THERE IS NOT AN  ADEQUATE  RENEWABLE  NATURAL  GAS
 SUPPLY  FOR  THE  GAS  CORPORATION TO PROCURE TO COMPLY WITH THE TARGETS
 ESTABLISHED IN SUBDIVISION THREE OF THIS SECTION OR (B)  COMPLYING  WITH
 THE  TARGETS WOULD HAVE AN ADVERSE IMPACT ON THE GAS CORPORATION AND ITS
 RATEPAYERS.
   7. NOTWITHSTANDING ANY PROVISION OF LAW TO THE  CONTRARY,  ANY  CALCU-
 LATION  OF  THE  GREENHOUSE  GAS  EMISSIONS PRODUCED BY THE DISTRIBUTION
 SYSTEM OF A GAS CORPORATION SHALL ACCOUNT FOR THE LIFE CYCLE  GREENHOUSE
 GAS  EMISSIONS  ASSOCIATED WITH RENEWABLE NATURAL GAS, INCLUDING AVOIDED
 EMISSIONS ASSOCIATED WITH THE PRODUCTION AND  DEVELOPMENT  OF  RENEWABLE
 NATURAL GAS.
   § 3. Section 66-f of the public service law is amended by adding a new
 subdivision 4 to read as follows:
   4.  THE PURCHASE OF RENEWABLE NATURAL GAS BY A GAS CORPORATION FOR THE
 PURPOSES OF COMPLYING WITH THE REQUIREMENTS OF  SECTION  SIXTY-SIX-X  OF
 THIS ARTICLE SHALL NOT BE SUBJECT TO THE REQUIREMENTS OF THIS SECTION.
   § 4. This act shall take effect immediately.