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The Assembly Hearing on the Zero-Emission Credit

State Assembly consideringremoving credit for clean energy

The New York State Assembly held a hearing on the Clean Energy Standard (CES). The meeting concerned the upholding of the Zero-Emission Credit component of the CES, a financial credit incentivizing clean energy. The Zero-Emission Credit is of equal value to the cost of greenhouse gas emissions incurred by New York when it produces unclean energy. For this hearing, NYLCV President Marcia Bystryn wrote a public letter in support of the Zero-Emission Credit to Assembly members and committees.

“The ZEC program is temporary and relies on a social cost of carbon that many environmental champions in the Assembly have supported. It appropriately recognizes that nuclear power is clean but not renewable and therefore should not be counted towards the Clean Energy Standard’s 50% renewable target. While it is true that all New Yorkers bear the cost of the ZEC program, it is also true that if these plants go offline and are replaced by coal- and gas-fired plants, all New Yorkers will be threatened by dirtier air and worsened climate change. Calls to abandon this program are short-sighted, forgoing the State’s position as a national leader while incurring enormous costs to present and future generations of New Yorkers.”

The Clean Energy Standard, which mandates at least 50% of New York’s electricity to come from renewable sources by 2030, is part of New York’s pledge to reduce greenhouse gas emissions 80% by 2050. Currently, about one third of all electricity in New York is generated by nuclear power plants, which emit zero climate changing greenhouse gasses. With three upstate nuclear facilities at risk of closure, the twelve-year Zero-Emission Credit increases the rate at which electricity is purchased from these nuclear plants in order to account for the benefits of clean energy. Due to the Zero-Emission Credit, the electricity is purchased at a price that subtracts the social cost of emissions.

Nuclear energy is emissions-free, but not infinitely renewable like wind and solar energy. Therefore, nuclear energy does not count toward the Clean Energy Standard’s 50% renewable target. However, if nuclear plants are closed, the energy they produce will likely be made up for by coal and gas plants, which would threaten all New Yorkers with dirtier air and a higher risk of climate change. The Zero-Emission Credit program is a temporary measure to ensure clean energy gets produced while long-term renewable projects are developing.