Bill Text: NY S00378 | 2023-2024 | General Assembly | Amended

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Bill Title: Relates to establishing a renewable hydrogen incentive and financing program to engage stakeholders to design and implement a competitive program for renewable hydrogen production for the purpose of meeting the state's clean energy and greenhouse emissions reductions targets.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Introduced) 2024-02-13 - REPORTED AND COMMITTED TO FINANCE [S00378 Detail]

Download: New_York-2023-S00378-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                         378--A

                               2023-2024 Regular Sessions

                    IN SENATE

                                       (Prefiled)

                                     January 4, 2023
                                       ___________

        Introduced  by  Sens.  PARKER,  HOYLMAN-SIGAL  -- read twice and ordered
          printed, and when printed to be committed to the Committee  on  Energy
          and  Telecommunications  -- reported favorably from said committee and
          committed to the Committee on Finance --  committee  discharged,  bill
          amended,  ordered reprinted as amended and recommitted to said commit-
          tee

        AN ACT to amend the energy law, in relation to  establishing  a  program
          for eligible renewable hydrogen

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. The energy law is amended by adding a  new  article  13  to
     2  read as follows:
     3                                 ARTICLE 13
     4             RENEWABLE HYDROGEN INCENTIVE AND FINANCING PROGRAM
     5  Section 13-101. Definitions.
     6          13-102. Renewable hydrogen incentive and financing program.
     7    §  13-101. Definitions. As used in this article:
     8    1. "Eligible renewable hydrogen" shall mean hydrogen (a) produced with
     9  electricity  generated  from  renewable  energy  systems  as  defined by
    10  section sixty-six-p of the public service law; (b) which  is  physically
    11  located within the jurisdiction of the New York independent system oper-
    12  ator;  and  (c)  delivered  to  a customer in New York state, where such
    13  delivery shall be subject to independent verification by  the  New  York
    14  state energy research and development authority or a qualified independ-
    15  ent party.
    16    2. "Eligible curtailed renewable hydrogen" means hydrogen (a) produced
    17  with  electricity generated from a renewable energy system as defined by
    18  section sixty-six-p of the public service law which has seen  its  elec-
    19  tricity  output  curtailed;  (b)  which is physically located within the
    20  jurisdiction of the New York independent system operator; and (c) deliv-

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02373-04-3
        S. 378--A                           2

     1  ered to a customer in New York  state,  where  such  delivery  shall  be
     2  subject  to  independent  verification  by  the  New  York  state energy
     3  research and development authority or a qualified independent party.
     4    §   13-102.   Renewable  hydrogen  incentive  and  financing  program.
     5  Notwithstanding any other provision of law to the  contrary,  including,
     6  but  not  limited to, any order, rule or regulation promulgated pursuant
     7  to the public service law, the public authorities law, and/or the  state
     8  administrative  procedure act, the public service commission, in consul-
     9  tation with the New York state energy research and development  authori-
    10  ty,  shall adopt a program within one year of the effective date of this
    11  section to provide support to and for eligible renewable  hydrogen  and,
    12  at  a  greater  rate,  eligible  curtailed renewable hydrogen, through a
    13  proceeding to engage stakeholders in order to  design  and  implement  a
    14  competitive  program  for eligible renewable hydrogen production for the
    15  purpose of meeting the state's clean  energy  and  greenhouse  emissions
    16  reductions targets. The program shall require:
    17    1.  administration  by the New York state energy research and develop-
    18  ment authority;
    19    2. a diversity of project sizes, geographic distribution, and  partic-
    20  ipation  among customer classes, subject to cost-effectiveness consider-
    21  ations;
    22    3. incentive or financing structures that maximize  cost-effectiveness
    23  and  practicality  through  competitive  procurements,  standing-offers,
    24  production incentives or capacity incentives at the wholesale or  retail
    25  level as, in the judgment of the commission, provide for the most effec-
    26  tive program;
    27    4. program designs that take into consideration the avoidance of long-
    28  term  costs to the transmission and distribution system and minimization
    29  of peak load in constrained areas;
    30    5. annual  reports  on  the  achievements  and  effectiveness  of  the
    31  program;
    32    6.  the  owner  of  the  eligible  renewable  production  or  eligible
    33  curtailed renewable hydrogen production supported and facilitated by the
    34  program pursuant to this section,  or  a  third  party  acting  on  such
    35  owner's  behalf, to comply with the provisions of section sixty-six-r of
    36  the public service law and section  two  hundred  twenty-four-d  of  the
    37  labor law; and
    38    7. such other requirements as deemed appropriate by the commission.
    39    § 2. This act shall take effect immediately.