Senate Bill S7133A

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7133--A
 
                        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  --  recommitted  to  the Committee on Energy and Telecommuni-
   cations in  accordance  with  Senate  Rule  6,  sec.  8  --  committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee
 
 AN  ACT  to  amend  the  public service law, in relation to enacting the
   "renewable natural gas standard  act";  and  making  an  appropriation
   therefor
 
   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 EMISSIONS;
   (IV)  RENEWABLE NATURAL GAS IS AN IMPORTANT RENEWABLE ENERGY SOURCE TO
 PAIR WITH MORE INTERMITTENT RESOURCES (SOLAR, WIND) BECAUSE IT IS READI-

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11308-04-6
              

 S. 7133--A                          2
 
 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,
 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; OR
   (II) 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-SEVEN, 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-SEVEN  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--A                          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 ENTER
 INTO LONG-TERM CONTRACTS OF UP TO THIRTY YEARS  IN  LENGTH  AND  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;
   (G) DESIGN THE PROGRAM TO MAXIMIZE  GLOBAL  GREENHOUSE  GAS  EMISSIONS
 BENEFITS; AND
   (H)  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
 REDUCTION OF GREENHOUSE GAS EMISSIONS WHEN PROCURING  RENEWABLE  NATURAL
 GAS FROM NON-HAZARDOUS LANDFILLS, FARMS, WASTEWATER TREATMENT PLANTS AND
 FOOD WASTE PROCESSING FACILITIES BASED ON THE LIFECYCLE CARBON INTENSITY
 OF  EACH  RENEWABLE  NATURAL  GAS  SOURCE  AS  CALCULATED BY THE ARGONNE
 NATIONAL LABORATORY'S RESEARCH AND DEVELOPMENT GREENHOUSE  GASES,  REGU-
 LATED  EMISSIONS  AND  ENERGY  USE IN TECHNOLOGIES (R&D GREET) LIFECYCLE
 ASSESSMENT MODEL.
   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  THE  PORTION  OF  FUEL  SUCH  GAS
 CORPORATION  WAS UNABLE TO ATTAIN 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 FULLY COMPLY WITH THE
 TARGETS ESTABLISHED IN SUBDIVISION THREE OF THIS SECTION OR (B)  COMPLY-
 ING 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
 S. 7133--A                          4
 
 GAS EMISSIONS BENEFITS ASSOCIATED WITH RENEWABLE NATURAL  GAS  EMISSIONS
 ASSOCIATED  WITH THE PRODUCTION AND DEVELOPMENT OF RENEWABLE NATURAL GAS
 IN RELATED WASTE OR AGRICULTURAL SYSTEMS  AND  INCLUDING  ANY  LIFECYCLE
 EMISSION REDUCTIONS OCCURRING GLOBALLY, INCLUDING AVOIDED.
   8.  NOTWITHSTANDING  ANY  OTHER  PROVISION OF LAW TO THE CONTRARY, THE
 PROGRAM SHALL ALLOW FREE IMPORT OF  RENEWABLE  NATURAL  GAS  FROM  OTHER
 STATES AND SHALL NOT INCLUDE ANY IMPORT BARRIERS NOT ALSO IMPOSED ON THE
 CONVENTIONAL GAS SUPPLY.
   § 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. The sum of seven hundred fifty thousand dollars ($750,000), or so
 much  thereof  as  may be necessary, is hereby appropriated to the State
 University of New York College of Environmental  Science  and  Forestry,
 through  its  Bioeconomy Development Institute, out of any moneys in the
 state treasury in the general fund to the credit of the  state  purposes
 fund,  not  otherwise  appropriated, and made immediately available, for
 the purpose of calculating the lifecycle carbon intensity of each renew-
 able natural gas source procured by a gas corporation under the  program
 established pursuant to section 66-x of the public service law, as added
 by  section  two  of this act. Such moneys shall be payable on the audit
 and warrant of the comptroller on vouchers certified or approved by  the
 State University of New York College of Environmental Science and Fores-
 try,  through  its  Bioeconomy  Development  Institute,  in  the  manner
 prescribed by law.
   § 5. This act shall take effect immediately.