This July, NYSERDA will hold its first Pre-Sale for 2027 vintage Tier 4 RECs. This is the annual opportunity for organizations to buy Tier 4 RECs that can be used to offset electricity usage used in LL97 penalty calculations. This sale's Tier 4 RECs will all come from the recently energized Champlain Hudson Power Express (CHPE) transmission line, which came online on June 1.

Where These RECs Come From

The Pre-Sale is one of three ways NYSERDA plans to sell Tier 4 RECs to voluntary buyers (alongside long-term contracts and a possible post-year Re-Sale), but the Pre-Sale is designed to be the primary means by which Tier 4 RECs are made available to the public.

This year's Pre-Sale will take place in July for Tier 4 RECs generated for and during the 2027 compliance year. If quantities are available and demand is sufficient, NYSERDA may hold a Re-Sale of any unsold 2027 Tier 4 RECs in March 2028.

What You'll Pay (and What You'll Save)

Prices for 2027 Tier 4 RECs available in the Pre-Sale have not yet been finalized but are expected to range between $20 and $50 per MWh, compared to the LL97 penalty for electricity overages of about $77.44 per MWh. Organizations expecting to exceed their LL97 limits can purchase Tier 4 RECs at roughly half the cost of the penalty they would otherwise pay.

The Fine Print on Quantities, Payment, and Delivery

Details to be aware of:

• Sale quantity is not guaranteed; if demand exceeds inventory designated for Pre-Sale, quantities will be prorated based on order amounts.

• The sale window will be open for 14 days, so buyer's actions must be prompt.

• Invoices will be generated within 7 days of Pre-Sale close,  and payment is due within 30 days. Failure of prompt payment may result in the cancellation of the order.

• Delivery of RECs will take place around February 2028.

Four Steps to Get Eligible Before the Sale Opens

The Pre-Sale is open to all buyers, but participation requires some setup. These 4 steps must be completed prior to participation:

• Establish a NYSERDA Customer Number

• Establish a New York Generation Attributes Tracking System (NYGATS) account

• Notify via email both NYSERDA and NYGATS of their intent to participate in the Pre-Sale

Additional information can be found at the NYSERDA site.