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Bill No.: Summary Actions Committee&nbspVotes Floor&nbspVotes Memo Text LFIN Chamber&nbspVideo/Transcript S07133 Summary: BILL NO S07133A &nbsp SAME AS No Same As &nbsp SPONSOR PARKER &nbsp COSPNSR &nbsp MLTSPNSR &nbsp Add §66-x, amd §66-f, Pub Serv L &nbsp Enacts the "renewable natural gas standard act"; requires the public service commission to establish a program to require that gas corporations procure renewable natural gas from third-parties, including affiliates of the gas corporation, for distribution to natural gas customers.

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STATE OF NEW YORK ________________________________________________________________________

7133--A

2025-2026 Regular Sessions

IN SENATE

April 1, 2025 ___________

Introduced by Sen. PARKER -- read twice and ordered printed, and when printed to be committed to the Committee on Energy and Telecommuni- cations -- recommitted to the Committee on Energy and Telecommuni- cations in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee

AN ACT to amend the public service law, in relation to enacting the "renewable natural gas standard act"; and making an appropriation therefor

The People of the State of New York, represented in Senate and Assem- bly, do enact as follows:

1 Section 1. Short title. This act shall be known and may be cited as 2 the "renewable natural gas standard act". 3 § 2. The public service law is amended by adding a new section 66-x to 4 read as follows: 5 § 66-x. Establishment of a renewable natural gas standard. 1. (a) The 6 legislature hereby finds that: 7 (i) the climate leadership and community protection act (CLCPA) 8 requires significant reductions in greenhouse gas emissions, including a 9 forty percent reduction in statewide greenhouse gas emissions by two 10 thousand thirty and an eighty-five percent reduction in statewide green- 11 house gas emissions by two thousand fifty; 12 (ii) in order to meet these aggressive targets, it is necessary to 13 further develop renewable energy sources, including renewable natural 14 gas; 15 (iii) the production of renewable natural gas is a desirable source of 16 renewable energy because it captures methane otherwise emitted into the 17 atmosphere from various sources of waste, thereby reducing greenhouse 18 gas emissions; 19 (iv) renewable natural gas is an important renewable energy source to 20 pair with more intermittent resources (solar, wind) because it is readi-

EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD11308-04-6

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1 ly available and can use existing natural gas infrastructure for reli- 2 able storage and delivery; and 3 (v) harnessing renewable natural gas as a fuel option will advance the 4 achievement of the CLCPA's greenhouse gas emissions reduction goals, 5 retain existing and/or create new jobs, stimulate the local economy and 6 provide potential additional revenue streams for entities such as local 7 farmers and municipalities. 8 (b) The legislature therefore declares that: 9 (i) renewable natural gas can be a carbon-negative resource and its 10 use is necessary to decarbonize the gas distribution system; and 11 (ii) the establishment of a renewable natural gas standard for gas 12 corporations is required to accelerate the development of renewable 13 natural gas in New York and support the achievement of the CLCPA green- 14 house gas emissions reduction goals. 15 2. As used in this section: 16 (a) "biogas" means a mixture of carbon dioxide and hydrocarbons, 17 primarily methane gas, released from the biological decomposition of 18 organic materials; 19 (b) "environmental attribute" means any credits, benefits, offsets or 20 allowances, including allowances under all applicable trading, compli- 21 ance, or budget programs, or any other federal, state, or regional emis- 22 sion, renewable energy, or energy conservation trading or budget program 23 associated with renewable natural gas; 24 (c) "life cycle greenhouse gas emissions" means the aggregate quantity 25 of greenhouse gas emissions related to the full fuel life cycle, includ- 26 ing all stages of fuel and feedstock production and distribution, from 27 feedstock generation or extraction through the distribution and delivery 28 and use of the finished fuel to the customer; 29 (d) "renewable energy sources" means hydroelectric, geothermal, solar 30 photovoltaic, wind, tidal, wave, biomass, biogas or similar energy 31 sources; 32 (e) "renewable natural gas" means any of the following products proc- 33 essed to meet pipeline quality standards or transportation fuel grade 34 requirements: 35 (i) biogas that is upgraded to meet natural gas pipeline quality stan- 36 dards such that it may blend with, or substitute for, geologic natural 37 gas; or 38 (ii) methane gas derived from any combination of biogas, hydrogen gas 39 derived from renewable energy sources or waste carbon dioxide; and 40 (f) "renewable natural gas infrastructure" means equipment and facili- 41 ties necessary for the production, processing, pipeline interconnection, 42 and distribution of renewable natural gas by a gas corporation to 43 customers. 44 3. No later than January first, two thousand twenty-seven, the commis- 45 sion shall establish a program to require that gas corporations procure 46 renewable natural gas from third parties, including affiliates of the 47 gas corporation, for distribution to natural gas customers. The program 48 shall require gas corporations to procure renewable natural gas to meet 49 the following targets: 50 (a) for each of the calendar years two thousand twenty-seven through 51 two thousand thirty, at least five percent of the gas corporation's 52 total volumetric purchases shall be renewable natural gas; 53 (b) for each of the calendar years two thousand thirty-one through two 54 thousand thirty-five, at least ten percent of the gas corporation's 55 total volumetric purchases shall be renewable natural gas;

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1 (c) for each of the calendar years two thousand thirty-six through two 2 thousand forty, at least fifteen percent of the gas corporation's total 3 volumetric purchases shall be renewable natural gas; 4 (d) for each of the calendar years two thousand forty-one through two 5 thousand forty-five, at least twenty percent of the gas corporation's 6 total volumetric purchases shall be renewable natural gas; and 7 (e) for each of the calendar years two thousand forty-six through two 8 thousand fifty, at least twenty-five percent of the gas corporation's 9 total volumetric purchases shall be renewable natural gas. 10 4. In establishing the program set forth in subdivision three of this 11 section, the commission shall: 12 (a) adopt cost recovery mechanisms to allow a gas corporation to enter 13 into long-term contracts of up to thirty years in length and recover 14 costs related to the purchase of renewable natural gas and costs related 15 to renewable natural gas infrastructure necessary for a gas corporation 16 to comply with the targets established in subdivision three of this 17 section; 18 (b) provide for the treatment of any environmental attributes associ- 19 ated with the purchase of renewable natural gas; 20 (c) consider appropriate cost mitigation measures; 21 (d) provide for the verification of renewable natural gas procured by 22 gas corporations; 23 (e) provide financial incentives related to the production and proc- 24 essing of renewable natural gas to entities that own non-hazardous land- 25 fills, dairy farms, wastewater treatment plants and food waste process- 26 ing facilities; 27 (f) design the program in a manner to maximize the development of 28 renewable natural gas in New York state; 29 (g) design the program to maximize global greenhouse gas emissions 30 benefits; and 31 (h) design the program in a manner to provide benefits to disadvan- 32 taged communities, as defined in article seventy-five of the environ- 33 mental conservation law, to the extent practicable. 34 5. Gas corporations shall, to the extent practicable, prioritize the 35 reduction of greenhouse gas emissions when procuring renewable natural 36 gas from non-hazardous landfills, farms, wastewater treatment plants and 37 food waste processing facilities based on the lifecycle carbon intensity 38 of each renewable natural gas source as calculated by the Argonne 39 National Laboratory's Research and Development Greenhouse gases, Regu- 40 lated Emissions and Energy use in Technologies (R&D GREET) lifecycle 41 assessment model. 42 6. In the event a gas corporation is not able to procure the volume of 43 renewable natural gas in any calendar year necessary to comply with the 44 targets established in subdivision three of this section, the gas corpo- 45 ration may petition the commission for a waiver of the requirements of 46 subdivision three of this section for the portion of fuel such gas 47 corporation was unable to attain for that calendar year. The commission 48 shall grant a waiver pursuant to this subdivision if the gas corporation 49 demonstrates that (a) there is not an adequate renewable natural gas 50 supply for the gas corporation to procure to fully comply with the 51 targets established in subdivision three of this section or (b) comply- 52 ing with the targets would have an adverse impact on the gas corporation 53 and its ratepayers. 54 7. Notwithstanding any provision of law to the contrary, any calcu- 55 lation of the greenhouse gas emissions produced by the distribution 56 system of a gas corporation shall account for the life cycle greenhouse

S. 7133--A 4

1 gas emissions benefits associated with renewable natural gas emissions 2 associated with the production and development of renewable natural gas 3 in related waste or agricultural systems and including any lifecycle 4 emission reductions occurring globally, including avoided. 5 8. Notwithstanding any other provision of law to the contrary, the 6 program shall allow free import of renewable natural gas from other 7 states and shall not include any import barriers not also imposed on the 8 conventional gas supply. 9 § 3. Section 66-f of the public service law is amended by adding a new 10 subdivision 4 to read as follows: 11 4. The purchase of renewable natural gas by a gas corporation for the 12 purposes of complying with the requirements of section sixty-six-x of 13 this article shall not be subject to the requirements of this section. 14 § 4. The sum of seven hundred fifty thousand dollars ($750,000), or so 15 much thereof as may be necessary, is hereby appropriated to the State 16 University of New York College of Environmental Science and Forestry, 17 through its Bioeconomy Development Institute, out of any moneys in the 18 state treasury in the general fund to the credit of the state purposes 19 fund, not otherwise appropriated, and made immediately available, for 20 the purpose of calculating the lifecycle carbon intensity of each renew- 21 able natural gas source procured by a gas corporation under the program 22 established pursuant to section 66-x of the public service law, as added 23 by section two of this act. Such moneys shall be payable on the audit 24 and warrant of the comptroller on vouchers certified or approved by the 25 State University of New York College of Environmental Science and Fores- 26 try, through its Bioeconomy Development Institute, in the manner 27 prescribed by law. 28 § 5. This act shall take effect immediately.

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