Bill Text: NY A02283 | 2019-2020 | General Assembly | Introduced


Bill Title: 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.

Spectrum: Moderate Partisan Bill (Democrat 9-1)

Status: (Introduced - Dead) 2020-01-08 - referred to energy [A02283 Detail]

Download: New_York-2019-A02283-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          2283
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    January 22, 2019
                                       ___________
        Introduced  by  M. of A. WOERNER -- Multi-Sponsored by -- M. of A. JONES
          -- read once and referred to the Committee on Energy
        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:
     1    Section 1.  Legislative Intent. It is the intent of  this  Legislature
     2  to  support  the  ongoing  financial  viability of farm waste generating
     3  equipment customer-generators--more commonly known as  anaerobic  diges-
     4  ters--in  New  York state. Anaerobic digesters located on New York dairy
     5  farms create critical environmental attributes including, but not limit-
     6  ed to, reducing methane gas releases and abating nutrient  contamination
     7  of  nearby  water sources.   The Legislature also recognizes that legacy
     8  anaerobic digesters are not financially viable under the current compen-
     9  sation methodology; as such, legacy anaerobic digesters are at  risk  of
    10  closure.  Any  closures  would undo the significant financial investment
    11  made by the state of New York to install anaerobic digesters  under  the
    12  Clean  Energy  Fund program.  Closures would also put New York behind on
    13  meeting greenhouse gas emission reduction goals as set forth  under  the
    14  State  Energy  Plan, and behind on developing a clean, distributed grid.
    15  While the New York state  Public  Service  Commission  has  initiated  a
    16  proceeding  to  transition  to  a  compensation methodology based on the
    17  value of distributed energy resources, the  implementation  of  the  new
    18  methodology  will  not address the immediate financial need of existing,
    19  or legacy, anaerobic digesters, or new digesters installed prior to  the
    20  finalization of a meaningful value stack methodology that includes envi-
    21  ronmental  values attributed to the avoided use of electricity generated
    22  by fossil fuels and the reduction of on-site greenhouse gas emissions.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01249-01-9

        A. 2283                             2
     1    The Legislature hereby determines that the public interest requires an
     2  increase in the rate of compensation for  customer-generators  operating
     3  legacy  anaerobic  digesters,  and  new digesters installed prior to the
     4  finalization of a meaningful value stack methodology, which  will  apply
     5  to  credit  calculations  for  the  customer-generators' bills following
     6  implementation of this legislation.
     7    § 2.  Paragraph (b) of subdivision 4 of section  66-j  of  the  public
     8  service  law,  as amended by chapter 494 of the laws of 2014, is amended
     9  to read as follows:
    10    (b) In the event that the amount of electricity produced by a  custom-
    11  er-generator during the billing period exceeds the amount of electricity
    12  used  by the customer-generator, the corporation shall apply a credit to
    13  the next bill for service to the customer-generator for  the  net  elec-
    14  tricity  provided  at  the  same  rate  per  kilowatt hour applicable to
    15  service provided to other customers in the same service class  which  do
    16  not  generate  electricity  onsite,  except  for micro-combined heat and
    17  power or fuel cell customer-generators [or farm waste generating  equip-
    18  ment  customer-generators as described in subparagraph (ix) of paragraph
    19  (a) of subdivision one of this section], who will  be  credited  at  the
    20  corporation's avoided costs; provided, however, that in the case of farm
    21  waste  generating  equipment  customer-generators, the corporation shall
    22  apply a credit to the next bill at a rate of no less than  twelve  cents
    23  per  kilowatt  hour.  The avoided cost credit provided to micro-combined
    24  heat and power or fuel cell customer-generators [or farm waste  generat-
    25  ing  equipment  customer-generators as described in subparagraph (ix) of
    26  paragraph (a) of subdivision one of this section] shall be  treated  for
    27  ratemaking  purposes  as a purchase of electricity in the market that is
    28  includable in commodity costs.
    29    § 3. This act shall take effect immediately.
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