STATE OF NEW YORK ________________________________________________________________________ 10008 IN ASSEMBLY March 4, 2020 ___________ Introduced by M. of A. CUSICK -- read once and referred to the Committee on Energy 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, as added by chapter one 11 hundred six of the laws of two thousand nineteen; (b) which is phys- 12 ically located within the jurisdiction of the New York independent 13 system operator; and (c) delivered to a customer in New York state, 14 where such delivery shall be subject to independent verification by the 15 New York state energy research and development authority or a qualified 16 independent party. 17 2. "Eligible curtailed renewable hydrogen" means hydrogen (a) produced 18 with electricity generated from a renewable energy system as defined by 19 section sixty-six-p of the public service law, as added by chapter one 20 hundred six of the laws of two thousand nineteen, which has seen its 21 electricity output curtailed; (b) which is physically located within the 22 jurisdiction of the New York independent system operator; and (c) deliv- 23 ered to a customer in New York state, where such delivery shall be 24 subject to independent verification by the New York state energy 25 research and development authority or a qualified independent party. 26 § 13-102. Renewable hydrogen incentive and financing program. 27 Notwithstanding any other provision of law to the contrary, including, 28 but not limited to, any order, rule or regulation promulgated pursuant EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD15048-02-0A. 10008 2 1 to the public service law, the public authorities law, and/or the state 2 administrative procedure act, the public service commission, in consul- 3 tation with the New York state energy research and development authori- 4 ty, shall adopt a program within one year of the effective date of this 5 section to provide support to and for eligible renewable hydrogen and, 6 at a greater rate, eligible curtailed renewable hydrogen, through a 7 proceeding to engage stakeholders in order to design and implement a 8 competitive program for eligible renewable hydrogen production for the 9 purpose of meeting the state's clean energy and greenhouse emissions 10 reductions targets. The program shall require: 11 1. administration by the New York state energy research and develop- 12 ment authority; 13 2. a diversity of project sizes, geographic distribution, and partic- 14 ipation among customer classes, subject to cost-effectiveness consider- 15 ations; 16 3. incentive or financing structures that maximize cost-effectiveness 17 and practicality through competitive procurements, standing-offers, 18 production incentives or capacity incentives at the wholesale or retail 19 level as, in the judgment of the commission, provide for the most effec- 20 tive program; 21 4. program designs that take into consideration the avoidance of long- 22 term costs to the transmission and distribution system and minimization 23 of peak load in constrained areas; 24 5. annual reports on the achievements and effectiveness of the 25 program; and 26 6. such other issues deemed appropriate by the commission. 27 § 2. This act shall take effect immediately.