A01214 Summary:

BILL NO    A01214 

SAME AS    No same as 

SPONSOR    Paulin

COSPNSR    

MLTSPNSR   

Add S66-n, Pub Serv L; ren SS1020-ii, 1020-jj & 1020-kk to be SS1020-jj,
1020-kk & 1020-ll, add S1020-ii, Pub Auth L

Establishes a fuel cell incentive program to be managed by NYSERDA to encourage
development of fuel cell generating systems.
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A01214 Actions:

BILL NO    A01214 

01/08/2015 referred to energy
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A01214 Votes:

There are no votes for this bill in this legislative session.
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A01214 Memo:

BILL NUMBER:A1214

TITLE  OF BILL:  An act to amend the public service law and the public
authorities law, in relation to establishing  a  fuel  cell  incentive
program

PURPOSE OF THE BILL:

To create a long-term incentive program for fuel cells modeled after a
similar program that has been implemented in relation to solar energy.

SUMMARY OF PROVISIONS:

Section  1  defines  terms  and  directs  the commission to modify its
current programs to create a fuel cell incentive program by 2016.

Section 2 directs the  Long  Island  Power  Authority  to  create  and
administer a fuel cell incentive program by 2016.

Section 3 Sets forth the effective date.

JUSTIFICATION:

New  York  is  a  nationwide leader in the development of clean energy
technologies. One of the keys to the development  of  the  market  has
been  long-term  incentive programs made available through NYSERDA and
funded  by  the  Renewable   Portfolio   Standard.   These   long-term
commitments  have  assisted  in  the development of the solar and wind
industries in the state, helped to create new jobs and  provided  more
capacity  and  reliability  to  the  energy  grid. Fuel cells have not
benefitted  from  a  long-term  incentive   program   and   therefore,
installations and industry development has lagged behind.

In  the  wake of Hurricanes Sandy and Irene and tropical storm Lee the
State is moving toward the creation of more micro grids and the Public
Service Commission is looking for more  ways  to  promote  distributed
generation.  Fuel  cells  are  the perfect technology to address these
challenges. Fuel cells are renewable, but also can provide a base load
source of energy, which allows the technology to be more flexible  and
to  power up when needed in a way that intermittent sources are unable
to accomplish.

This bill will create a ten-year incentive  program  for  fuel  cells,
modeled after the NY SUN program, so that the industry can have surety
of  investment by the state and private investment will begin to flow.
This bill seeks to level the  playing  field  for  fuel  cells  as  it
relates  to  state  subsidies,  so  that New York will develop greater
renewable fuel diversity and continue to reduce emissions.

PRIOR LEGISLATIVE HISTORY:

A.9814, 2013, referred to energy. Same as S.7460, 2014 passed Senate.

FISCAL IMPLICATIONS:


The yearly costs of the program are $65 million combined to the state;
however, NYSERDA makes off-budget collections of almost $1 billion. As
such there is not direct fiscal impact on the state operating budget.

EFFECTIVE DATE:

Immediately
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A01214 Text:

                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________

                                         1214

                              2015-2016 Regular Sessions

                                 I N  A S S E M B L Y

                                    January 8, 2015
                                      ___________

       Introduced by M. of A. PAULIN -- read once and referred to the Committee
         on Energy

       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-n to read as follows:
    3    S 66-N. 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, THAT IS
   11  CONNECTED  TO THE ELECTRIC SYSTEM AND OPERATED IN PARALLEL WITH AN ELEC-
   12  TRIC CORPORATION'S TRANSMISSION AND DISTRIBUTION FACILITIES, AND THAT IS
   13  OPERATED IN COMPLIANCE WITH ANY STANDARDS AND  REQUIREMENTS  ESTABLISHED
   14  IN THIS CHAPTER OR BY ORDER OF THE PUBLIC SERVICE COMMISSION.
   15    2.  WITHIN  FORTY-FIVE DAYS OF THE EFFECTIVE DATE OF THIS SECTION, THE
   16  COMMISSION SHALL COMMENCE THE  CONSIDERATION  OF  MODIFICATIONS  TO  ITS
   17  EXISTING  PROGRAMS THAT ENCOURAGE THE DEVELOPMENT OF QUALIFIED FUEL CELL
   18  ELECTRIC GENERATING SYSTEMS AND, NO LATER THAN JANUARY FIRST, TWO  THOU-
   19  SAND  SIXTEEN,  THE  COMMISSION  SHALL MAKE A DETERMINATION ESTABLISHING
   20  MODIFICATIONS TO ITS EXISTING PROGRAMS THAT ENCOURAGE THE DEVELOPMENT OF
   21  QUALIFIED FUEL CELL GENERATING SYSTEMS IN CONFORMANCE WITH THIS SECTION.
   22  THE DEPARTMENT SHALL CONSULT WITH THE NEW YORK STATE ENERGY RESEARCH AND
   23  DEVELOPMENT AUTHORITY IN THE PREPARATION OF ITS RECOMMENDATIONS  TO  THE
   24  COMMISSION  FOR  SUCH  DETERMINATION.  THE  PROGRAM  MODIFICATIONS SHALL
   25  REQUIRE:

        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD04872-01-5
       A. 1214                             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  SIXTEEN
    5  AND SUSTAINED EACH YEAR THROUGH CALENDAR YEAR TWO THOUSAND TWENTY-SIX;
    6    (C) A DIVERSITY OF PROJECT SIZES, GEOGRAPHIC DISTRIBUTION, AND PARTIC-
    7  IPATION  AMONG CUSTOMER CLASSES, SUBJECT TO COST-EFFECTIVENESS CONSIDER-
    8  ATIONS;
    9    (D) INCENTIVE STRUCTURES THAT MAXIMIZE COST-EFFECTIVENESS AND  PRACTI-
   10  CALITY  THROUGH  COMPETITIVE  PROCUREMENTS,  STANDING-OFFERS, PRODUCTION
   11  INCENTIVES OR CAPACITY INCENTIVES AT THE WHOLESALE OR RETAIL LEVEL AS IN
   12  THE JUDGMENT OF THE COMMISSION, IN CONSULTATION WITH THE NEW YORK  INDE-
   13  PENDENT SYSTEM OPERATOR, PROVIDE FOR THE MOST EFFECTIVE PROGRAM;
   14    (E)  INCENTIVE  STRUCTURES  THAT  TAKE INTO CONSIDERATION THE ECONOMIC
   15  BENEFITS TO THE STATE OF NEW YORK;
   16    (F) PROGRAM DESIGNS THAT TAKE  INTO  CONSIDERATION  THE  AVOIDANCE  OF
   17  LONG-TERM  COSTS TO THE TRANSMISSION AND DISTRIBUTION SYSTEM AND MINIMI-
   18  ZATION OF PEAK LOAD IN CONSTRAINED AREAS;
   19    (G) ANNUAL REPORTS  ON  THE  ACHIEVEMENTS  AND  EFFECTIVENESS  OF  THE
   20  PROGRAM; AND
   21    (H) SUCH OTHER ISSUES DEEMED APPROPRIATE BY THE COMMISSION.
   22    S  2.  Sections 1020-ii, 1020-jj and 1020-kk of the public authorities
   23  law, as renumbered by chapter 388 of the laws of  2011,  are  renumbered
   24  sections 1020-jj, 1020-kk and 1020-ll and a new section 1020-ii is added
   25  to read as follows:
   26    S 1020-II. ESTABLISHMENT OF FUEL CELL INCENTIVE PROGRAM. 1. AS USED IN
   27  THIS  SECTION  THE TERM "QUALIFIED FUEL CELL ELECTRIC GENERATING SYSTEM"
   28  MEANS:   A SYSTEM BASED ON  A  SOLID  OXIDE,  MOLTEN  CARBONATE,  PROTON
   29  EXCHANGE  MEMBRANE  OR  PHOSPHORIC  ACID FUEL CELL THAT IS MANUFACTURED,
   30  INSTALLED AND OPERATED IN  ACCORDANCE  WITH  APPLICABLE  GOVERNMENT  AND
   31  INDUSTRY  STANDARDS,  THAT IS CONNECTED TO THE ELECTRIC SYSTEM AND OPER-
   32  ATED  IN  PARALLEL  WITH  AN  ELECTRIC  CORPORATION'S  TRANSMISSION  AND
   33  DISTRIBUTION  FACILITIES,  AND  THAT  IS  INSTALLED  IN  THE AUTHORITY'S
   34  SERVICE TERRITORY AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN.
   35    2. THE AUTHORITY SHALL CONTINUE TO ENCOURAGE THE DEVELOPMENT OF QUALI-
   36  FIED FUEL CELL ELECTRIC GENERATING  SYSTEMS  IN  ITS  SERVICE  TERRITORY
   37  THROUGH  IMPLEMENTATION  OF THE FUEL CELL INCENTIVE PROGRAM. THE PROGRAM
   38  SHALL REQUIRE:
   39    (A) PLANNED ANNUAL EXPENDITURES INCLUDING  ALL  COSTS  OF  AT  MINIMUM
   40  FIFTEEN MILLION DOLLARS COMMENCING IN CALENDAR YEAR TWO THOUSAND SIXTEEN
   41  AND SUSTAINED EACH YEAR THROUGH CALENDAR YEAR TWO THOUSAND TWENTY-SIX;
   42    (B) A DIVERSITY OF PROJECT TYPES;
   43    (C) PROGRAM ADMINISTRATION AND DELIVERY;
   44    (D)  INCENTIVE  STRUCTURES  THAT  TAKE INTO CONSIDERATION THE ECONOMIC
   45  BENEFITS TO THE STATE OF NEW YORK;
   46    (E) PROGRAM DESIGNS THAT TAKE  INTO  CONSIDERATION  THE  AVOIDANCE  OF
   47  LONG-TERM  COSTS TO THE TRANSMISSION AND DISTRIBUTION SYSTEM AND MINIMI-
   48  ZATION OF PEAK LOAD IN CONSTRAINED AREAS AND THAT MAXIMIZES  COST-EFFEC-
   49  TIVENESS THROUGH COMPETITIVE PROCUREMENTS;
   50    (F)  ANNUAL  REPORTS  ON  THE  ACHIEVEMENTS  AND  EFFECTIVENESS OF THE
   51  PROGRAM; AND
   52    (G) ANY OTHER OBJECTIVES THE AUTHORITY MAY ESTABLISH.
   53    S 3. This act shall take effect immediately.
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