The Public Service Commission’s October 15, 2020 Order [PDF] established a new, short-term Competitive Tier 2 Program within the Clean Energy Standard (CES). The new Competitive Tier 2 Program aims to maximize the contributions and potential of New York’s existing renewable resources to ensure their continued operations. The Program will support certain existing baseline renewable resources that are selected as part of three annual solicitations.
Applying for Tier 2 Eligibility
Tier 2 eligibility will NOT be applied for in the NYGATS, as Eligible Projects are awarded outside the NYGATS (through a Competitive Tier 2 Request for Proposals). Once Awarded, NYSERDA will update these projects in the NYGATS to include the Tier 2 Eligibility Flag.
What types of Projects are Eligible for Tier 2
Eligible Competitive Tier 2 generators include existing non-state-owned run-of-river hydropower and existing wind resources located within the State that entered commercial operation prior to January 1, 2015. Generation from eligible facilities not already under contract with NYSERDA will be eligible for Competitive Tier 2 compensation.
Transfering Tier 2 RECs
Physical Tier 2 RECs will only be transferred to NYSERDA (from awarded Tier 2 Generators). Each LSE will be required to purchase a proportionate share of these Tier 2 RECs, but LSEs will not receive physical Tier 2 RECs from NYSERDA.
Note - Tier 2 RECs can NOT Be banked or transferred to any account other than NYSERDA.
NYSERDA Implementation Plan
NYSERDA filed a Competitive Tier 2 Re-sale Implementation Plan Proposal for stakeholder comment and Commission approval on May 1, 2021. The plan includes a description of the Competitive Tier 2 REC re-sale process, timing, and NYSERDA’s interaction with the LSE obligations and reconciliation process.