Bill Text: NY S05985 | 2023-2024 | General Assembly | Introduced

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Bill Title: Establishes a fuel cell incentive program to be managed by NYSERDA to encourage development of fuel cell generating systems.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-05-15 - REPORTED AND COMMITTED TO FINANCE [S05985 Detail]

Download: New_York-2023-S05985-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          5985

                               2023-2024 Regular Sessions

                    IN SENATE

                                     March 24, 2023
                                       ___________

        Introduced  by  Sen. SANDERS -- read twice and ordered printed, and when
          printed to be committed to the Committee on  Energy  and  Telecommuni-
          cations

        AN  ACT  to amend the public service law and the public authorities law,
          in relation to establishing a fuel cell incentive program

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

     1    Section  1.  The public service law is amended by adding a new section
     2  66-v to read as follows:
     3    § 66-v. Fuel cell incentive program. 1. As used in this section:
     4    (a) "Electric distribution company" means an  investor-owned  electric
     5  corporation  that distributes and delivers electricity within this state
     6  and has annual revenues in excess of two hundred million dollars; and
     7    (b) "Qualified fuel cell electric generating system" means:  a  system
     8  based  on  a  solid oxide, molten carbonate, proton exchange membrane or
     9  phosphoric acid fuel cell that is manufactured, installed  and  operated
    10  in  accordance  with  applicable  government and industry standards, and
    11  that is operated in  compliance  with  any  standards  and  requirements
    12  established  in  this  chapter or by order of the public service commis-
    13  sion.
    14    2. Within forty-five days of the effective date of this  section,  the
    15  commission  shall  commence  the  consideration  of modifications to its
    16  existing programs that encourage the development of qualified fuel  cell
    17  electric  generating systems and, no later than January first, two thou-
    18  sand twenty-four, the commission shall make a determination establishing
    19  modifications to its existing programs that encourage the development of
    20  qualified fuel cell generating systems in conformance with this section.
    21  The department shall consult with the New York state energy research and
    22  development authority in the preparation of its recommendations  to  the
    23  commission  for  such  determination.  The  program  modifications shall
    24  require:

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04818-02-3
        S. 5985                             2

     1    (a) administration by the New York state energy research and  develop-
     2  ment authority;
     3    (b)  planned  annual  expenditures including all costs of a minimum of
     4  fifty million dollars commencing in calendar year two  thousand  twenty-
     5  four  and sustained each year through calendar year two thousand thirty-
     6  four;
     7    (c) a diversity of project sizes, geographic distribution, and partic-
     8  ipation among customer classes, subject to cost-effectiveness  consider-
     9  ations;
    10    (d)  incentive structures that maximize cost-effectiveness and practi-
    11  cality through  competitive  procurements,  standing-offers,  production
    12  incentives or capacity incentives at the wholesale or retail level as in
    13  the  judgment of the commission, in consultation with the New York inde-
    14  pendent system operator, provide for the most effective program;
    15    (e) incentive structures that take  into  consideration  the  economic
    16  benefits to the state of New York;
    17    (f)  program  designs  that  take  into consideration the avoidance of
    18  long-term costs to the transmission and distribution system and  minimi-
    19  zation of peak load in constrained areas;
    20    (g)  annual  reports  on  the  achievements  and  effectiveness of the
    21  program; and
    22    (h) such other issues deemed appropriate by the commission.
    23    § 2. The public authorities law is amended by  adding  a  new  section
    24  1020-nn to read as follows:
    25    § 1020-nn. Establishment of fuel cell incentive program. 1. As used in
    26  this  section  the term "qualified fuel cell electric generating system"
    27  means:   a system based on  a  solid  oxide,  molten  carbonate,  proton
    28  exchange  membrane  or  phosphoric  acid fuel cell that is manufactured,
    29  installed and operated in  accordance  with  applicable  government  and
    30  industry  standards,  and  that  is installed in the authority's service
    31  territory after January first, two thousand twenty-four.
    32    2. The authority shall continue to encourage the development of quali-
    33  fied fuel cell electric generating  systems  in  its  service  territory
    34  through  implementation  of the fuel cell incentive program. The program
    35  shall require:
    36    (a) planned annual expenditures including  all  costs  of  at  minimum
    37  fifteen  million  dollars commencing in calendar year two thousand twen-
    38  ty-four and sustained each year through calendar year two thousand thir-
    39  ty-four;
    40    (b) a diversity of project types;
    41    (c) program administration and delivery;
    42    (d) incentive structures that take  into  consideration  the  economic
    43  benefits to the state of New York;
    44    (e)  program  designs  that  take  into consideration the avoidance of
    45  long-term costs to the transmission and distribution system and  minimi-
    46  zation  of peak load in constrained areas and that maximizes cost-effec-
    47  tiveness through competitive procurements;
    48    (f) annual reports  on  the  achievements  and  effectiveness  of  the
    49  program; and
    50    (g) any other objectives the authority may establish.
    51    § 3. This act shall take effect immediately.