NY State Senate Bill 2025-S9648

Current 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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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Mar 31, 2026	referred to energy and telecommunications

co-Sponsors

2025-S9648 (ACTIVE) - Details

Current Committee:: Senate Energy And Telecommunications
Law Section:: Public Service Law
Laws Affected:: Amd §66-p, add Art 12 §§250 - 253, Pub Serv L; add §99-uu, St Fin L

2025-S9648 (ACTIVE) - Summary

Establishes a tradeable geothermal renewable energy credit compliance instrument for load serving entities.

2025-S9648 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S9648

SPONSOR: HARCKHAM
 
TITLE OF BILL:

An act to amend the public service law and the state finance law, in
relation to geothermal renewable energy credits

 
PURPOSE:

To establish a statewide geothermal renewable energy credit (GREC)
program and requires electric utilities to meet annual geothermal
procurement targets. The goal is to accelerate the adoption of high-ef-
ficiency geothermal heating and cooling systems, reduce greenhouse gas
emissions, and help manage New York's shifting winter peak electricity
demand. It also establishes funding and compliance mechanisms to support
deployment, workforce training, and low- and moderate-income installa-
tions

 
SUMMARY OF PROVISIONS:

Section 1 establishes New York State's emission reduction goals, the

stress on the state's energy infrastructure and the state's scoping plan
estimates which predict that higher adoption of 16 geothermal heating
and cooling systems could reduce New York's system peak demand by four
to twelve gigawatts compared to a scenario relying more heavily on air-
source heat pumps.

Section 2 amends paragraph (b) of subdivision 1 of section 66-p of the
public 20 service law, to define renewable energy systems as "systems
that generate electricity or thermal energy through use of the following
technologies: solar thermal, photovoltaics, on land and offshore wind,
hydroelectric, geothermal electric, geothermal ground source heat,
geothermal heating and cooling systems that leverage renewable thermal
energy, tidal energy, wave energy, ocean thermal, and fuel cells which
do not utilize a fossil fuel resource in the process of generating elec-
tricity."

Section 3 amends the public service law with the addition of a new Arti-
cle 12 which establishes a full regulatory framework for geothermal
heating and cooling in NYS. Section 250 of the article 12 defines key
terms. Section 251 of article 12 establishes the creation of a geother-
mal portfolio standard by the Public Service Commission which will
require all LSEs in the state to procure and retire a minimum percentage
of GRECs each year, starting in 2027 with 0.1%. In 2028 the required
GREC will be 0.25% and will double yearly after that until 2031. For
2032, there will only be 0.5% increase from the 2031 percentage meaning
the required percentage in 2032 will be 2%.  The commission after a
program review may increase the requirement up to 3% by 2035 if the
program is deemed cost effective. Section 252 of the article establishes
the eligibility requirements for geothermal heating and cooling systems
to qualify for GRECs. Eligible systems must meet minimum standards set
by the NYS clean energy heat star geothermal specification. Only systems
placed in service on or after January 1, 2026 are eligible. At least 15%
of the geothermal carve-out must come from LMI installations. Section
253 established alternative compliance payments and a program review. If
an LSE fails to procure enough GRECs, it must pay an alternative compli-
ance payment into a new geothermal fund. The minimum payment per missing
GREC will start at $100 in 2027 and decrease by $5 yearly until 2032.
The PSC must also issue biennial reports on the program starting Decem-
ber 1, 2030 evaluating: market performance, cost impacts, emissions
reductions and recommendations for adjusting the geothermal carve-out

Section 4 amends the state finance law by adding a new section 99-uu
which establishes the Geothermal fund in the joint custody of the comp-
troller, the commissioner of taxation and finance, and the commissioner
of health which will be funded by all money following Article 12 section
253 of the public service law and any other apppro 
AIRTIONS FOLLOWING
THE LAW. THE MONEY IN THE FUND WILL BE AVAILABLE TO THE NYS ENERGY AND
RESEARCH DEVELOPMENT AUTHORITY FOR THE PURPOSE OF ALTERNATIVE COMPLIANCE
PAYMENT; SECTION 253 OF THE PUBLIC SERVICE LAW.

SECTION 5 STATES THE EFFECTIVE DATE.

 
JUSTIFICATION:

NEW YORK STATE IS FACING UNPRECEDENTED ENERGY AFFORDABILITY CHALLENGES,
AS RISING PEAK DEMAND RISKS FURTHER INCREASES IN CONSUMER ENERGY COSTS.
AT THE SAME TIME, NEW YORK'S ELECTRIC GRID IS PROJECTED TO MOVE FROM
PEAK DEMAND DURING THE SUMMER TO PEAK DEMAND DURING THE WINTER BY 2036.
ENERGY SUPPLY DEFICIENCIES COULD ARISE AS SOON AS 2029. GEOTHERMAL HEAT-
ING AND COOLING SYSTEMS SIGNIFICANTLY REDUCE YEAR-ROUND ENERGY CONSUMP-
TION AND SHAVE PEAK ELECTRIC DEMAND, THEREBY SERVING AS AN IMPORTANT
RATE MITIGATION TECHNOLOGY. THIS LEGISLATION BUILDS UPON THE STATE'S
NATIONAL LEADERSHIP IN THE GEOTHERMAL SECTOR, ESTABLISHING PERFORMANCE-
BASED CREDITS FOR THE OPERATION OF HIGH-EFFICIENCY GEOTHERMAL HEATING
AND COOLING SYSTEMS. BY INCENTIVIZING THE DEPLOYMENT OF NEW GEOTHERMAL
SYSTEMS, ENERGY COST SAVINGS WILL BE ACCESSIBLE TO MORE NEW YORKERS AND
JOB OPPORTUNITIES WILL EXPAND FOR THE STATE'S DRILLERS, PIPE TRADES,
ELECTRICAL WORKERS, AND HOMEBUILDERS. SIMPLY PUT, MORE GEOTHERMAL HEAT-
ING AND COOLING MEANS A MORE AFFORDABLE ENERGY SYSTEM, MORE SKILLED
JOBS, AND A STRONGER GRID.

 
LEGISLATIVE HISTORY:

NONE

 
FISCAL IMPLICATIONS:

UNDETERMINED

 
EFFECTIVE DATE:
THIS ACT SHALL TAKE EFFECT ON THE ONE HUNDRED EIGHTIETH DAY AFTER IT
SHALL HAVE BECOME A LAW.

2025-S9648 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9648
 
                             I N  S E N A T E
 
                              March 31, 2026
                                ___________
 
 Introduced  by Sen. HARCKHAM -- 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 and the state finance law, in
   relation to geothermal renewable energy credits
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1.  Legislative  findings  and  intent.  1. Buildings are New
 York's largest source of greenhouse gas emissions. New York  has  estab-
 lished  statewide  goals of 40 percent greenhouse gas emission reduction
 by 2030 and 85 percent by 2050.
   2. New York has also established an  all-electric  building  code  for
 most new construction.
   3.  High-efficiency  geothermal heating and cooling systems can supply
 efficient, affordable, and consistent year-round heating,  cooling,  and
 water  heating. They are five times more efficient than cold-climate air
 source heat pumps.
   4. New York's electric grid is projected  to  move  from  peak  demand
 during the summer to peak demand during the winter by 2036.
   5.  Statewide energy supply deficiencies could arise as soon as winter
 2029-2030.
   6. The New York state scoping plan estimated that higher  adoption  of
 geothermal  heating  and  cooling systems could reduce New York's system
 peak demand by four to twelve gigawatts compared to a  scenario  relying
 more heavily on air-source heat pumps.
   §  2.  Paragraph  (b)  of  subdivision 1 of section 66-p of the public
 service law, as amended by section 3 of part QQ of  chapter  56  of  the
 laws of 2023, is amended to read as follows:
   (b) "renewable energy systems" means systems that generate electricity
 or thermal energy through use of the following technologies: solar ther-
 mal, photovoltaics, on land and offshore wind, hydroelectric, geothermal
 electric,  geothermal ground source heat, GEOTHERMAL HEATING AND COOLING
 SYSTEMS THAT LEVERAGE GEOTHERMAL  ENERGY,  tidal  energy,  wave  energy,
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD14954-02-6

 S. 9648                             2
 
 ocean  thermal,  and  fuel  cells  which  do  not  utilize a fossil fuel
 resource in the process of generating electricity.
   §  3.  The public service law is amended by adding a new article 12 to
 read as follows:
                                 ARTICLE 12
                      GEOTHERMAL HEATING AND COOLING
 SECTION 250. DEFINITIONS.
         251. GEOTHERMAL PORTFOLIO STANDARD.
         252. ELIGIBILITY.
         253. ALTERNATIVE COMPLIANCE PAYMENT AND PROGRAM REVIEW.
   § 250. DEFINITIONS. FOR THE PURPOSES OF  THIS  ARTICLE  THE  FOLLOWING
 TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   1.  "GEOTHERMAL  HEATING  AND  COOLING  SYSTEM"  MEANS  A  SYSTEM THAT
 EXCHANGES THERMAL ENERGY FROM THE  GROUND  OR  GROUNDWATER  TO  LEVERAGE
 THERMAL  ENERGY THROUGH A GEOTHERMAL HEAT PUMP OR A SYSTEM OF GEOTHERMAL
 HEAT PUMPS INTERCONNECTED  WITH  ANY  GEOTHERMAL  EXTRACTION  SYSTEM  OR
 FACILITY THAT IS (A) A CLOSED LOOP OR A SERIES OF CLOSED LOOP SYSTEMS IN
 WHICH FLUID IS PERMANENTLY CONFINED WITHIN A PIPE OR TUBING AND DOES NOT
 COME IN CONTACT WITH THE OUTSIDE ENVIRONMENT; OR (B) AN OPEN LOOP SYSTEM
 IN  WHICH  GROUND  OR  SURFACE WATER IS CIRCULATED IN AN ENVIRONMENTALLY
 SAFE MANNER DIRECTLY INTO THE SYSTEM OR FACILITY  AND  RETURNED  TO  THE
 SAME AQUIFER OR SURFACE WATER SOURCE.
   2.  "GEOTHERMAL  RENEWABLE  ENERGY CREDIT" OR "GREC" MEANS A TRADEABLE
 COMPLIANCE INSTRUMENT EQUAL TO ONE MEGAWATT-HOUR OF USEFUL THERMAL HEAT-
 ING AND COOLING AS DETERMINED UNDER COMMISSION RULES BY CONVERTING  BTUS
 TO MEGAWATT-HOURS. ELIGIBLE GEOTHERMAL RENEWABLE ENERGY CREDITS SHALL BE
 THE  PRODUCT  OF  THE  PERFORMANCE  RATING OF THE GEOTHERMAL HEATING AND
 COOLING SYSTEM AND THE ENERGY USAGE OF THE GEOTHERMAL HEATING AND  COOL-
 ING  SYSTEM  NEEDED  TO SERVE THE SPACE HEATING AND COOLING AND/OR WATER
 HEATING LOAD REQUIRED BY THE BUILDING. TO  MAKE  THIS  CALCULATION,  THE
 COMMISSION  (A)  SHALL  APPROVE  AN  APPROPRIATE  FORMULA SUPPORTED BY A
 GEOTHERMAL INDUSTRY TRADE ORGANIZATION, (B) MAY PROPOSE  ADJUSTMENTS  TO
 ANY  FORMULAS FOR ITS PROPOSED RENEWABLE ENERGY CREDIT CALCULATION METH-
 ODOLOGY, AND (C) MAY REFLECT CALCULATION METHODOLOGIES  ALREADY  IN  USE
 FOR  OTHER STATE RENEWABLE PORTFOLIO STANDARDS, IF APPLICABLE AND APPRO-
 PRIATE. THE COMMISSION SHALL UTILIZE THE NEW YORK  GENERATION  ATTRIBUTE
 TRACKING   SYSTEM  OR  A  COMPATIBLE  PLATFORM  TO  REGISTER  GEOTHERMAL
 RESOURCES AND ISSUE AND TRACK GRECS.
   3. "LOAD SERVING ENTITY" OR "LSE" IS ANY ENTITY SUBJECT TO THE  JURIS-
 DICTION  OF  THE  COMMISSION THAT SECURES ENERGY TO SERVE THE ELECTRICAL
 ENERGY REQUIREMENTS OF END-USE CUSTOMERS IN THE STATE.
   4. "LOW- AND MODERATE-INCOME INSTALLATION" OR "LMI INSTALLATION" MEANS
 AN INSTALLATION SERVING  HOUSEHOLDS  OR  FACILITIES  MEETING  INCOME  OR
 SERVICE CRITERIA ESTABLISHED BY THE COMMISSION.
   § 251. GEOTHERMAL  PORTFOLIO  STANDARD.  1.  WITHIN  SIX MONTHS OF THE
 EFFECTIVE DATE OF THIS ARTICLE, THE COMMISSION SHALL PROPOSE A  GEOTHER-
 MAL  PORTFOLIO  STANDARD  WITH A GEOTHERMAL CARVE-OUT APPLICABLE TO EACH
 LSE SERVING RETAIL ELECTRIC LOAD IN NEW YORK STATE. COMPLIANCE SHALL  BE
 DEMONSTRATED WITH THE RETIREMENT OF GRECS ISSUED PURSUANT TO SUBDIVISION
 THREE OF THIS SECTION.
   2.  EACH LSE SHALL PROCURE AND RETIRE GRECS IN AN AMOUNT NOT LESS THAN
 THE FOLLOWING PERCENTAGES OF THE LSE'S PRIOR-YEAR RETAIL ELECTRIC SALES:
   (A) TWO THOUSAND TWENTY-SEVEN: ONE TENTH OF ONE PERCENT;
   (B) TWO THOUSAND TWENTY-EIGHT: ONE QUARTER OF ONE PERCENT;
   (C) TWO THOUSAND TWENTY-NINE: ONE HALF OF ONE PERCENT;
   (D) TWO THOUSAND THIRTY: THREE QUARTERS OF ONE PERCENT;
 S. 9648                             3
 
   (E) TWO THOUSAND THIRTY-ONE: ONE AND ONE-HALF PERCENT;
   (F)  TWO  THOUSAND  THIRTY-TWO  AND  THEREAFTER: TWO PERCENT; PROVIDED
 HOWEVER, AFTER  A  PROGRAM  REVIEW,  THE  COMMISSION  MAY  INCREASE  THE
 REQUIREMENT  UP TO THREE PERCENT BY TWO THOUSAND THIRTY-FIVE IF COST-EF-
 FECTIVE AND IN THE PUBLIC INTEREST.
   3. THE COMMISSION SHALL FINALIZE THE STANDARD ESTABLISHED PURSUANT  TO
 THIS SECTION WITHIN TWELVE MONTHS OF THE EFFECTIVE DATE OF THIS ARTICLE.
   § 252. ELIGIBILITY.  1. ELIGIBLE TECHNOLOGIES INCLUDE GEOTHERMAL HEAT-
 ING AND COOLING SYSTEMS AS DEFINED IN SECTION TWO HUNDRED FIFTY OF  THIS
 ARTICLE.
   2.  GEOTHERMAL HEATING AND COOLING SYSTEMS SHALL MEET MINIMUM PERFORM-
 ANCE STANDARDS SET BY THE NEW YORK STATE CLEAN HEAT ENERGY STAR GEOTHER-
 MAL SPECIFICATION TO THE EXTENT APPLICABLE.
   3. ONLY INSTALLATIONS PLACED IN SERVICE ON OR AFTER JANUARY FIRST, TWO
 THOUSAND TWENTY-SIX ARE ELIGIBLE TO GENERATE GRECS.
   4. NOT LESS THAN FIFTEEN PERCENT OF THE  ANNUAL  GEOTHERMAL  CARVE-OUT
 SHALL  BE  MET WITH GRECS FROM LMI INSTALLATIONS OF FACILITIES PRIMARILY
 SERVING LMI CUSTOMERS, SUBJECT TO RULES PROMULGATED BY THE COMMISSION.
   § 253. ALTERNATIVE COMPLIANCE PAYMENT AND PROGRAM REVIEW.  1.  AN  LSE
 THAT  FAILS TO PROCURE AND RETIRE SUFFICIENT GRECS SHALL PAY AN ALTERNA-
 TIVE COMPLIANCE PAYMENT INTO THE GEOTHERMAL FUND ESTABLISHED PURSUANT TO
 SECTION NINETY-NINE-UU OF THE STATE FINANCE LAW FOR  GEOTHERMAL  DEPLOY-
 MENT,  WORKFORCE  TRAINING,  AND  LMI  INSTALLATIONS. THE NEW YORK STATE
 ENERGY RESEARCH AND DEVELOPMENT AUTHORITY SHALL ESTABLISH  THE  ALTERNA-
 TIVE COMPLIANCE PAYMENT PRICE PER GREC NOT LESS THAN:
   (A) TWO THOUSAND TWENTY-SEVEN: ONE HUNDRED DOLLARS;
   (B) TWO THOUSAND TWENTY-EIGHT: NINETY-FIVE DOLLARS;
   (C) TWO THOUSAND TWENTY-NINE: EIGHTY-FIVE DOLLARS;
   (D) TWO THOUSAND THIRTY: SEVENTY-FIVE DOLLARS;
   (E) TWO THOUSAND THIRTY-ONE: SEVENTY DOLLARS; AND
   (F) TWO THOUSAND THIRTY-TWO, AND THEREAFTER:  SIXTY-FIVE DOLLARS.
   2.  BY DECEMBER FIRST, TWO THOUSAND THIRTY, AND EVERY TWO YEARS THERE-
 AFTER, THE COMMISSION SHALL REPORT TO THE GOVERNOR  AND  LEGISLATURE  ON
 MARKET  PERFORMANCE,  COST IMPACTS, EMISSIONS REDUCTION, AND RECOMMENDA-
 TIONS ON ADJUSTING THE GEOTHERMAL CARVE-OUT.
   § 4. The state finance law is amended by adding a new section 99-uu to
 read as follows:
   § 99-UU. GEOTHERMAL FUND. 1. THERE IS HEREBY ESTABLISHED IN THE  JOINT
 CUSTODY  OF  THE  COMPTROLLER, THE COMMISSIONER OF TAXATION AND FINANCE,
 AND THE COMMISSIONER OF HEALTH, A FUND, TO BE KNOWN AS  THE  "GEOTHERMAL
 FUND".
   2.  SUCH FUND SHALL CONSIST OF ALL MONEYS RECEIVED PURSUANT TO SECTION
 TWO HUNDRED FIFTY-THREE OF THE PUBLIC SERVICE LAW, AND OTHERWISE  APPRO-
 PRIATED  THERETO  FROM ANY OTHER FUND OR SOURCE PURSUANT TO LAW. NOTHING
 CONTAINED IN THIS SECTION SHALL PREVENT THE STATE FROM RECEIVING GRANTS,
 GIFTS OR BEQUESTS FOR THE PURPOSES  OF  THE  FUND  AS  DEFINED  IN  THIS
 SECTION AND DEPOSITING THEM INTO THE FUND ACCORDING TO LAW.
   3.  MONEYS  OF  THE FUND SHALL BE MADE AVAILABLE TO THE NEW YORK STATE
 ENERGY RESEARCH AND DEVELOPMENT AUTHORITY FOR THE  PURPOSES  OF  SECTION
 TWO HUNDRED FIFTY-THREE OF THE PUBLIC SERVICES LAW.
   § 5. This act shall take effect on the one hundred eightieth day after
 it shall have become a law.

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Senate Bill S9648

Sponsored By

Current Bill Status - In Senate Committee Energy And Telecommunications Committee

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co-Sponsors

2025-S9648 (ACTIVE) - Details

2025-S9648 (ACTIVE) - Summary

2025-S9648 (ACTIVE) - Sponsor Memo

2025-S9648 (ACTIVE) - Bill Text download pdf

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Sponsored By

Pete Harckham

Current Bill Status - In Senate Committee Energy And Telecommunications Committee

Actions

co-Sponsors

Rachel May

2025-S9648 (ACTIVE) - Details

2025-S9648 (ACTIVE) - Summary

2025-S9648 (ACTIVE) - Sponsor Memo

2025-S9648 (ACTIVE) - Bill Text download pdf

Comments