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Energy and Telecommunications: May 10, 2011

Votes

Memo

BILL NUMBER:S3872A

TITLE OF BILL: An act to amend the public authorities law, in relation to requiring the development of a renewable energy credit certification and tracking system by the New York state energy research and development authority

PURPOSE: The purpose of this bill is to prepare a tracking system for renewable energy credits. As New York State moves closer to a market system in which energy is bought and sold through a credit mechanism, it is important to track the creation of the energy generated, as well as when this energy is bought and sold in the marketplace to ensure the credibility of the renewable energy credit market.

SUMMARY OF PROVISIONS:; This bill amends section 1854 of the public authorities law by adding a new subdivision 19.

JUSTIFICATION: This legislation requires the New York State Energy Research and Development Agency (NYSERDA) to establish a tracking system for Renewable Energy Credits (RECs). A REC is defined as the environmental attributes associated with one mega-watt hour of qualified renewable energy generation. NYSERDA will be required to consult with the Department of Public Service staff and the New York Independent Systems Operator in the development of this tracking system. As New York, and the country, moves toward a market based system to stimulate renewable energy generation, New York State must begin to develop the infrastructure necessary to successfully monitor the sale and trade of this energy.

LEGISLATIVE HISTORY: This is a new bill.

FISCAL IMPLICATIONS: To be determined.

EFFECTIVE DATE: This act shall take effect immediately.

Text

STATE OF NEW YORK
________________________________________________________________________

3872--A

2011-2012 Regular Sessions

IN SENATE

March 8, 2011
___________

Introduced  by  Sen. MAZIARZ -- read twice and ordered printed, and when
  printed to be committed to the Committee on  Energy  and  Telecommuni-
  cations  --  committee  discharged, bill amended, ordered reprinted as
  amended and recommitted to said committee

AN ACT to amend the public authorities law, in relation to requiring the
  development of a renewable energy credit  certification  and  tracking
  system by the New York state energy research and development authority

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Section 1851 of the public authorities law  is  amended  by
adding a new subdivision 18 to read as follows:
  18.  "RENEWABLE  ENERGY  CREDIT" OR "REC" SHALL MEAN THE ENVIRONMENTAL
ATTRIBUTES ASSOCIATED WITH  ONE  MEGAWATT-HOUR  OF  QUALIFIED  RENEWABLE
ENERGY GENERATION.
  S 2. Section 1854 of the public authorities law is amended by adding a
new subdivision 19 to read as follows:
  19.  TO  ESTABLISH  A  PROCESS  AND PROCEDURE FOR CERTIFYING RENEWABLE
ENERGY CREDITS AND A SYSTEM FOR TRACKING THE SALE AND TRADING OF RENEWA-
BLE ENERGY CREDITS. EACH INITIAL ISSUANCE, SALE, AND TRADING OF  RENEWA-
BLE  ENERGY  CREDITS SHALL BE RECORDED IN THE TRACKING SYSTEM AND EASILY
REPORTABLE. THE AUTHORITY SHALL CONSULT WITH THE NEW  YORK  STATE  INDE-
PENDENT  SYSTEM  OPERATOR AND THE DEPARTMENT OF PUBLIC SERVICE TO AID IN
DEVELOPMENT OF THE RENEWABLE ENERGY CREDIT  CERTIFICATION  AND  TRACKING
SYSTEM AND MAY CONTRACT AND DELEGATE RESPONSIBILITY FOR THE OPERATION OF
THE SYSTEM TO A THIRD PARTY PENDING APPROVAL BY THE AUTHORITY'S BOARD OF
DIRECTORS.  SUCH  SYSTEM  SHALL  BE  DEVELOPED  WITHIN SIX MONTHS OF THE
EFFECTIVE DATE OF THIS SUBDIVISION AND SHALL BE  COMPATIBLE  WITH  OTHER
SUCH  SYSTEMS OPERATING IN OTHER REGIONS OF THE UNITED STATES AND CANADA
TO THE GREATEST EXTENT  FEASIBLE.  IT  SHALL  ALSO  ACCOUNT  FOR  ENERGY
IMPORTS FROM AREAS WITHOUT SIMILAR TRACKING SYSTEMS.
  S 3. This act shall take effect immediately.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10062-03-1