New York PSC Approves NFGD Tariff Change Related To Renewable Natural Gas

The New York PSC has approved tariff changes filed by National Fuel Gas Distribution Corporation related to Renewable Natural Gas (RNG)

On July 31, 2018, National Fuel Gas Distribution Corporation (National Fuel or the Company) filed amendments to its gas tariff schedule, P.S.C. No. 9. In its filing, National Fuel proposes tariff amendments to add a definition for Renewable Natural Gas (RNG) and identify RNG as a source of production gas that is subject to the Receipt Facility Maintenance Fee for Production Facilities.

The Company also proposes updated tariff measurement standards to reflect the type of measurement that will typically be used to measure gas received from RNG facilities and proposes supplemented industry standards for calculation of flow to include analogous standards applicable to both rotary and turbine meters having volumetric correctors.

Unrefined or "raw" RNG gas is known to contain constituents such that it would not be considered merchantable or safe for the gas distribution system and therefore would not be accepted into the Company’s distribution system. The constituents found within unrefined RNG gas can be tied directly to the source from which it is derived, therefore, parties wishing to produce RNG gas for delivery into the Company’s distribution system (RNG Operators) are required to meet supplemental Renewable Natural Gas Quality Standards for Constituents of Concern in addition to the Company’s normal pipeline quality standards. These supplemental RNG quality standards are further highlighted in the Company’s GTOP Manual.

National Fuel proposed to add a definition for RNG under General Information, Section II.1 – Definitions, and defines RNG as: " ... biomethane produced from non-hazardous landfills, dairy farms, wastewater treatment plants and food waste processing facilities, or gas from other renewable processes, such as methanation, that meets the Company’s RNG Quality Standards, as specified in the RNG Interconnect Agreement provided in the Gas Transportation Operating Procedures Manual (GTOP), as well as the gas quality standard specified in this tariff."

The New York Retail Choice Coalition (NYRCC) submitted comments in support of NFG’s proposed tariff amendments and changes to its Gas Transportation Operating Procedures (GTOP) Manual. The NYRCC stated that it supports the addition of definitions, procedures and an RNG interconnect agreement because, among other things, the amendments will provide the mass market gas customers a means to support a greener economy by supporting zero-emission projects and will also help provide a level of renewable energy parity for those gas marketers which only offer natural gas products.

The PSC approved the RNG tariff amendments filed by National Fuel Gas Distribution Corporation, effective on December 1, 2018.