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.
STATE OF NEW YORK
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11141
IN ASSEMBLY
April 24, 2026
___________
Introduced by M. of A. KAY -- read once and referred to the Committee on
Energy
AN ACT to amend the public service law, in relation to enacting the
"renewable natural gas standard act"
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-one and an eighty-five percent reduction in statewide
11 greenhouse gas emissions by two thousand fifty-one;
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 reductions;
19 (iv) renewable natural gas is an important renewable energy source to
20 pair with more intermittent resources (solar, wind) because it is readi-
21 ly available and can use existing natural gas infrastructure for reli-
22 able storage and delivery; and
23 (v) harnessing renewable natural gas as a fuel option will advance the
24 achievement of the CLCPA's greenhouse gas emissions reduction goals,
25 retain existing and/or create new jobs, stimulate the local economy and
26 provide potential additional revenue streams for entities such as local
27 farmers and municipalities.
28 (b) The legislature therefore declares that:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD11308-03-6
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1 (i) renewable natural gas can be a carbon-negative resource and its
2 use is necessary to decarbonize the gas distribution system; and
3 (ii) the establishment of a renewable natural gas standard for gas
4 corporations is required to accelerate the development of renewable
5 natural gas in New York and support the achievement of the CLCPA green-
6 house gas emissions reduction goals.
7 2. As used in this section:
8 (a) "biogas" means a mixture of carbon dioxide and hydrocarbons,
9 primarily methane gas, released from the biological decomposition of
10 organic materials;
11 (b) "environmental attribute" means any credits, benefits, offsets or
12 allowances, including allowances under all applicable trading, compli-
13 ance, or budget programs, or any other federal, state, or regional emis-
14 sion, renewable energy, or energy conservation trading or budget program
15 associated with renewable natural gas;
16 (c) "life cycle greenhouse gas emissions" means the aggregate quantity
17 of greenhouse gas emissions related to the full fuel life cycle, includ-
18 ing all stages of fuel and feedstock production and distribution, from
19 feedstock generation or extraction through the distribution and delivery
20 and use of the finished fuel to the customer;
21 (d) "renewable energy sources" means hydroelectric, geothermal, solar
22 photovoltaic, wind, tidal, wave, biomass, biogas or similar energy
23 sources;
24 (e) "renewable natural gas" means any of the following products proc-
25 essed to meet pipeline quality standards or transportation fuel grade
26 requirements:
27 (i) biogas that is upgraded to meet natural gas pipeline quality stan-
28 dards such that it may blend with, or substitute for, geologic natural
29 gas;
30 (ii) hydrogen gas produced using renewable energy sources and/or
31 produced with a carbon intensity equal to or less than two kilograms of
32 carbon dioxide equivalent produced at the site of production per kilo-
33 gram of hydrogen produced; or
34 (iii) methane gas derived from any combination of biogas, hydrogen gas
35 derived from renewable energy sources or waste carbon dioxide; and
36 (f) "renewable natural gas infrastructure" means equipment and facili-
37 ties necessary for the production, processing, pipeline interconnection,
38 and distribution of renewable natural gas by a gas corporation to
39 customers.
40 3. No later than January first, two thousand twenty-seven, the commis-
41 sion shall establish a program to require that gas corporations procure
42 renewable natural gas from third parties, including affiliates of the
43 gas corporation, for distribution to natural gas customers. The program
44 shall require gas corporations to procure renewable natural gas to meet
45 the following targets:
46 (a) for each of the calendar years two thousand twenty-seven through
47 two thousand thirty-one, at least five percent of the gas corporation's
48 total volumetric purchases shall be renewable natural gas;
49 (b) for each of the calendar years two thousand thirty-two through two
50 thousand thirty-six, at least ten percent of the gas corporation's total
51 volumetric purchases shall be renewable natural gas;
52 (c) for each of the calendar years two thousand thirty-seven through
53 two thousand forty-one, at least fifteen percent of the gas corpo-
54 ration's total volumetric purchases shall be renewable natural gas;
A. 11141 3
1 (d) for each of the calendar years two thousand forty-two through two
2 thousand forty-six, at least twenty percent of the gas corporation's
3 total volumetric purchases shall be renewable natural gas; and
4 (e) for each of the calendar years two thousand forty-seven through
5 two thousand fifty-one, at least twenty-five percent of the gas corpo-
6 ration's total volumetric purchases shall be renewable natural gas.
7 4. In establishing the program set forth in subdivision three of this
8 section, the commission shall:
9 (a) adopt cost recovery mechanisms to allow a gas corporation to
10 recover costs related to the purchase of renewable natural gas and costs
11 related to renewable natural gas infrastructure necessary for a gas
12 corporation to comply with the targets established in subdivision three
13 of this section;
14 (b) provide for the treatment of any environmental attributes associ-
15 ated with the purchase of renewable natural gas;
16 (c) consider appropriate cost mitigation measures;
17 (d) provide for the verification of renewable natural gas procured by
18 gas corporations;
19 (e) provide financial incentives related to the production and proc-
20 essing of renewable natural gas to entities that own non-hazardous land-
21 fills, dairy farms, wastewater treatment plants and food waste process-
22 ing facilities;
23 (f) design the program in a manner to maximize the development of
24 renewable natural gas in New York state; and
25 (g) design the program in a manner to provide benefits to disadvan-
26 taged communities, as defined in article seventy-five of the environ-
27 mental conservation law, to the extent practicable.
28 5. Gas corporations shall, to the extent practicable, prioritize the
29 procurement of renewable natural gas from non-hazardous landfills,
30 farms, wastewater treatment plants and food waste processing facilities.
31 6. In the event a gas corporation is not able to procure the volume of
32 renewable natural gas in any calendar year necessary to comply with the
33 targets established in subdivision three of this section, the gas corpo-
34 ration may petition the commission for a waiver of the requirements of
35 subdivision three of this section for that calendar year. The commission
36 shall grant a waiver pursuant to this subdivision if the gas corporation
37 demonstrates that (a) there is not an adequate renewable natural gas
38 supply for the gas corporation to procure to comply with the targets
39 established in subdivision three of this section or (b) complying with
40 the targets would have an adverse impact on the gas corporation and its
41 ratepayers.
42 7. Notwithstanding any provision of law to the contrary, any calcu-
43 lation of the greenhouse gas emissions produced by the distribution
44 system of a gas corporation shall account for the life cycle greenhouse
45 gas emissions associated with renewable natural gas, including avoided
46 emissions associated with the production and development of renewable
47 natural gas.
48 § 3. Section 66-f of the public service law is amended by adding a new
49 subdivision 4 to read as follows:
50 4. The purchase of renewable natural gas by a gas corporation for the
51 purposes of complying with the requirements of section sixty-six-x of
52 this article shall not be subject to the requirements of this section.
53 § 4. This act shall take effect immediately.
