Renewable Portfolio Standard Further Reading

RPS History

The 2002 State Energy Plan developed by the New York State Energy Planning Board warned of the possible consequences of New York's heavy dependence on fossil fuel. The plan noted that the State's fossil fuel sources (gas, coal, oil) are largely imported from abroad or out-of-state, have significant long-term negative environmental impacts, and ultimately face depletion. At the request of Governor George Pataki, a proceeding was instituted by the New York State Public Service Commission (PSC) on February 19, 2003 to explore the development of a Renewable Portfolio Standard (RPS). The PSC voted on September 24, 2004 to adopt an RPS, embodying Governor Pataki's goal of increasing the proportion of renewable electricity used by New York consumers from the 2004 baseline of 19.3% to at least 25% by 2013. In establishing the RPS, the PSC noted that the primary benefits expected from implementing the RPS Program include: 1) diversifying the generation resource mix to improve energy security and independence; 2) attracting the economic benefits from renewable resource generators, manufacturers, and installers to New York State; and 3) improving New York's environment by reducing air emissions and other adverse environmental impacts of electricity generation.

As a result of the September 24, 2004 action to adopt the State's RPS program, the PSC designated the New York State Energy Research and Development Authority (NYSERDA) as the central procurement administrator of the RPS Program. The PSC ordered the major investor-owned utilities to collect revenues from ratepayers, to be administered by NYSERDA, for the purpose of achieving a mandatory RPS target set at 24% of retail electricity consumption. The RPS program is designed such that the remaining 1% of the 25% goal comes from voluntary purchases made by retail customers. This combination of voluntary and mandatory targets creates a need for proactive participation from all energy stakeholders, including consumers, to achieve the 25% goal.

PSC policy seeks to transition the RPS program over time to ensure compatibility with evolving competitive market conditions. A comprehensive program review is scheduled for 2009, at which time the PSC will examine strategies to transition the program into a more market-driven vehicle, which is the ultimate goal for continued renewable energy development in New York State.

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Benefits to NY

NYSERDA estimates that the thirty renewable energy projects supported under the RPS program could generate more than $2.0 billion of in-state economic benefits over their 20-year expected economic life. These benefits are expected to come in the form of new trade and professional jobs, new property tax revenues to local taxing jurisdictions, royalty payments to landowners, purchases of construction materials and equipment rentals, and various other economic benefits. This estimate of benefits excludes consideration of economic spill-over affects associated with increased local income and increased property tax revenues. A November 2008 report on the estimated economic benefits of the NY RPS can be found here:NYSERDA Main Tier Renewable Portfolio Standard Economic Benefits Report.

Along with the expected economic benefits resulting from the RPS investments, New York will enjoy cleaner air from the operation of these new renewable resources. The energy expected to be generated by these new renewable resources will result in potential avoided emissions amounting to 2,600 tons of nitrogen oxides, 5,200 tons of sulfur dioxides, and 1.9 million tons of carbon dioxide per year, as compared to electricity generated by the system-wide mix of conventional, non-renewable generating resources in New York.

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NY Compared to Other States

Many states around the country have enacted renewable portfolio standards with similar goals to New York’s RPS. As of July 2008, 25 states and the District of Columbia have RPS policies in place. In addition, six states have adopted non-binding renewable energy goals. In most of these states, a renewable energy percentage target is implemented by requiring the local delivery utilities to supply their customers with a certain percentage of electricity from renewable sources. Under New York’s RPS Program, NYSERDA, as the central administrator, does not purchase or supply electricity. Rather, NYSERDA pays a production incentive for the environmental attributes (“RPS Attributes”) created upon the generation of electricity by eligible renewable resources, under long-term contracts. RPS Attributes represent the “greenness” of the electricity generated and include any and all reductions in harmful pollutants and emissions, such as carbon dioxide and oxides of sulfur and nitrogen. In purchasing these attributes, NYSERDA requires that the renewable electricity be sold to end users in New York State either through the wholesale market, or via energy suppliers such as a local utility or competitive energy supplier.

One RPS Attribute is created by the production and delivery into New York’s wholesale electricity market of one MWh of electricity by an eligible RPS resource. By acquiring the RPS Attributes, rather than the associated electricity, the RPS Program ensures that increasing amounts of renewable electricity will be injected into the State’s electricity market, while minimizing interference with the State’s competitive electricity markets.

Please see the Department of Energy's Web site for more detailed information on other state's RPS programs.

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NY's RPS Targets

RPS Energy Targets (in Megawatt hours)

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Other Sites of Interest

PowerNaturally.org
NYSERDA's comprehensive Website for information on renewable energy.

New York State Department of Public Service
The NYS DPS's home page for the Retail Renewable Portfolio Standard, Case 03-E-0188.  Contains documents and information about the initiative.

The First Report of the Governor’s Renewable Energy Task Force
Read the full report here, which includes recommendations about how New York State can enhance energy independence through renewable energy development.

NYSERDA’s Wind Energy Toolkit: Community Resources for Wind Development
Designed to provide information for communities and elected officials on many aspects of wind energy development.

New York State Wind Resource Map
This site contains an updated map of New York's wind speeds that was developed under NYSERDA funding.

National Renewable Energy Laboratory (NREL)
NREL is the nation's only national laboratory dedicated to renewable energy and energy efficiency research and development. Click the link for basic information about the main categories of renewable energy.

U.S. Department of Energy (DOE)
The DOE is tasked with advancing the national, economic, and energy security of the United States. Here you’ll find information on energy efficiency and renewable energy technologies.

Energy Information Administration of DOE
EIA provides statistical information about our country’s electricity use.  Click the link for renewable energy information.

New York State Energy Profile – EIA
Find out how much energy New Yorkers consume, and what the energy sources breakdown is.

American Wind Energy Association
A national trade organization that promotes the uses of wind energy. The site includes contact information for developers, consultants, equipment suppliers, and other members.

Solar Energy Industries Association (SEIA)
A national trade organization that promotes the use of solar energy. The site includes contact information for developers, consultants, equipment suppliers, and other members.

Renewable Energy World
This free, online news source provides information on all things renewable.

New York Independent System Operator
The NYISO oversees the operation of New York's electric transmission system and wholesale electricity market.

PJM Environmental Information Services
Information on PJM's Generation Attribute Tracking System (GATS).

NEPOOL GIS
Information on New England's Generation Information System (GIS).

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PSC Orders / Regulations

• September 24, 2004 Order Regarding Retail Renewable Portfolio Standards
• April 14, 2005 Order Approving Implementation Plan
• January 26, 2006 Order Authorizing Additional Main Tier Solicitations
• June 28, 2006 Order on Delivery Requirements for Imports
• June 28, 2006 Order on Recognizing Environmental Attributes and Allowing Physical Bilaterals
• June 28, 2006 Order on Customer-Sited Tier Implementation

Other orders and documents pertaining to the RPS program may be found on the PSC Web site.