What's happening
This bill requires utility companies to credit farm waste energy generators at a minimum rate of twelve cents per kilowatt hour.
Why it matters
Supports the financial stability of farm-based anaerobic digesters. , which help manage agricultural waste, by guaranteeing a higher minimum payment for the electricity they generate—making these systems more economically viable and reducing the risk of closure.
Incentivizes environmental benefits. such as methane reduction and improved water quality by making it more attractive for farms to invest in or maintain anaerobic digesters, directly supporting New York’s climate and clean energy goals.
Addresses a compensation gap for legacy and new digesters. by requiring utilities to pay at least twelve cents per kilowatt hour, rather than the lower “avoided cost” rate, until a more comprehensive value-based compensation method is finalized—helping bridge a critical funding period for these projects.
Protects past public investments and ongoing climate efforts. by reducing the likelihood that previously funded digesters will shut down, thus preserving the environmental and financial benefits already achieved through state-supported clean energy programs.
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Who cares
Headline styles
Raise Credit for Farm Energy
Plain English, a few words. Used as the page title.
Sponsors
History
- Referred to energy and telecommunications
- Committed to rules
- Advanced to third reading
- 2nd report cal.
- 1st report cal.317
- Referred to energy and telecommunications
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Increase Farm Waste Power Credit
In Assembly Committee · Energy · Sponsor Carrie Woerner
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
452
2019-2020 Regular Sessions
IN SENATE (Prefiled)
January 9, 2019
Introduced by Sens. HELMING, FUNKE, GALLIVAN, GRIFFO, RITCHIE -- read twice and ordered printed, and when printed to be committed to the Committee on Energy and Telecommunications
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 agricultural waste
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Legislative Intent. It is the intent of this Legislature to support the ongoing financial viability of farm waste generating equipment customer-generators--more commonly known as anaerobic digesters--in New York state. Anaerobic digesters located on New York dairy farms create critical environmental attributes including, but not limited to, reducing methane gas releases and abating nutrient contamination of nearby water sources. The Legislature also recognizes that legacy anaerobic digesters are not financially viable under the current compensation methodology; as such, legacy anaerobic digesters are at risk of closure. Any closures would undo the significant financial investment made by the state of New York to install anaerobic digesters under the Clean Energy Fund program. Closures would also put New York behind on meeting greenhouse gas emission reduction goals as set forth under the State Energy Plan, and behind on developing a clean, distributed grid. While the New York state Public Service Commission has initiated a proceeding to transition to a compensation methodology based on the value of distributed energy resources, the implementation of the new methodology will not address the immediate financial need of existing, or legacy, anaerobic digesters, or new digesters installed prior to the finalization of a meaningful value stack methodology that includes envi-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01249-01-9
S. 452 2
ronmental values attributed to the avoided use of electricity generated by fossil fuels and the reduction of on-site greenhouse gas emissions.
The Legislature hereby determines that the public interest requires an increase in the rate of compensation for customer-generators operating legacy anaerobic digesters, and new digesters installed prior to the finalization of a meaningful value stack methodology, which will apply to credit calculations for the customer-generators' bills following implementation of this legislation.
§ 2. Paragraph (b) of subdivision 4 of section 66-j of the public service law, as amended by chapter 494 of the laws of 2014, is amended to read as follows:
(b) In the event that the amount of electricity produced by a customer-generator during the billing period exceeds the amount of electricity used by the customer-generator, the corporation shall apply a credit to the next bill for service to the customer-generator for the net electricity provided at the same rate per kilowatt hour applicable to service provided to other customers in the same service class which do not generate electricity onsite, except for micro-combined heat and power or fuel cell customer-generators [or farm waste generating equipment customer-generators as described in subparagraph (ix) of paragraph (a) of subdivision one of this section], who will be credited at the corporation's avoided costs; provided, however, that in the case of farm waste generating equipment customer-generators, the corporation shall apply a credit to the next bill at a rate of no less than twelve cents per kilowatt hour. The avoided cost credit provided to micro-combined heat and power or fuel cell customer-generators [or farm waste generating equipment customer-generators as described in subparagraph (ix) of paragraph (a) of subdivision one of this section] shall be treated for ratemaking purposes as a purchase of electricity in the market that is includable in commodity costs.
§ 3. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
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 agricultural waste
Purpose
The purpose of this bill is to establish that in the event that the amount of electricity produced by a customer-generator during the bill- ing period exceeds the amount of electricity used by the customer-gener- ator, the corporation shall apply a credit to the next bill for service to farm waste generating equipment customer-generators at a rate of no less than twelve cents per kilowatt hour.
Summary of provisions
Section 1 sets forth the legislative intent of the bill, which is to establish a minimum rate of compensation for the sale of electricity generated by anaerobic digesters sold into the electric grid that can only be superseded by a methodology that includes certain environmental values and that supports the financial viability of these systems.
Section 2 amends paragraph (b) of subdivision 4 of section 66-j of the public service law to establish that when a farm waste generating equip- ment customer-generator produces an amount of electricity in excess of the amount used by the customer-generator, the corporation must apply a credit to the next bill for service at a rate of no less than twelve cents per kilowatt hour.
Section 3 establishes the effective date.
Justification
Anaerobic digesters located on New York dairy farms create critical environmental attributes including, but not limited to, reducing methane gas releases and abating nutrient contamination of nearby water sources. While the state has invested significant funds into the establishment of existing anaerobic digesters, the current rate of compensation is insuf- ficient for the continued financial viability of many of these systems. While compensation models under net metering and remote net metering have attempted to meet this need, a higher rate of compensation is crit- ical to the future viability of anaerobic digesters in New York State.
This legislation would establish a minimum rate of compensation for the sale of electricity produced by anaerobic digesters into the electrical grid.
Importantly, while the Public Service Commission is currently within a regulatory proceeding that is meant to introduce a new rate methodology for renewable energy generators including anaerobic digesters, this legislation would supersede any new rate methodology applicable to anae- robic digesters that does not support their financial viability and does not assign environmental attributes that take into account fossil fuel offset as well as the avoided emission of greenhouse gases from manure.
Prior legislative history
2018: S.7742/A.9618-A referred to Energy.
Fiscal implications
None.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.