New York PSC approves clean energy funding reductions and new oversight measures

Rory M. Christian Chair and CEO at New York State Public Service Commission
Rory M. Christian Chair and CEO at New York State Public Service Commission - New York State Public Service Commission
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The New York State Public Service Commission has approved the 2026 administrative budget for the Clean Energy Standard (CES), which includes funding for the Zero Emission Credit (ZEC) program. The decision also covers the acceptance of a final Supplemental Generic Environmental Impact Statement (SGEIS) related to extending the ZEC program, and modifications to NYSERDA’s Clean Transportation Prize program.

Rory M. Christian, Chair of the Commission, stated, “The decisions we make today support the continued private investment in New York State’s growing clean energy economy. By supporting advanced, emissions-free transportation and generation, we are spurring the creation of a clean energy economy, helping to create good paying jobs, and ensuring that New York’s energy system remains reliable and affordable for customers.”

For 2026, NYSERDA had requested $34.78 million for its CES compliance year budget. The Commission approved a reduced amount of $31.4 million—a decrease of 15 percent from 2025—to align with current renewable project developments and ease ratepayer costs. The budget will cover staff salaries, overhead expenses, system development, technical support, and cost recovery fees. Funding will be sourced from previous years’ revenues such as bid fees and alternative compliance payments.

NYSERDA manages over 100 renewable energy generator contracts under this budget framework.

The ZEC program will continue to be funded through an administrative adder mechanism. With acceptance of the SGEIS on the proposed ZEC extension now complete, the Commission can move forward with preparing a findings statement required by state environmental review laws before making further decisions about extending ZECs.

Regarding NYSERDA’s Clean Transportation Prize Program petition, NYSERDA sought a two-year extension for nine winners and five years for one winner; however, after two projects were cancelled post-petition filing, these terms changed slightly. NYSERDA also requested an additional $500,000—about 15 percent more—for expanded administration due to longer timelines but this request was denied because fewer projects remain active.

The Commission did approve new reporting requirements designed to improve transparency in how NYSERDA manages the Clean Transportation Prize Program.

Public access to today’s full decisions is available via www.dps.ny.gov by searching case numbers 15-E-0302 or 18-E-0138.



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