A01214 Summary:

BILL NO    A01214A

SAME AS    SAME AS S03993

SPONSOR    Paulin

COSPNSR    

MLTSPNSR   

Add S66-o, 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    A01214A

01/08/2015 referred to energy
02/10/2015 reported referred to ways and means
02/23/2015 amend and recommit to ways and means
02/23/2015 print number 1214a
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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:A1214A

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--A

                              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 -- reported and referred to the Committee on Ways and Means
         -- committee discharged, bill amended, ordered  reprinted  as  amended
         and recommitted to said committee

       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-o to read as follows:
    3    S 66-O. 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 SIXTEEN, 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

        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD04872-03-5
       A. 1214--A                          2

    1  COMMISSION FOR  SUCH  DETERMINATION.  THE  PROGRAM  MODIFICATIONS  SHALL
    2  REQUIRE:
    3    (A)  ADMINISTRATION BY THE NEW YORK STATE ENERGY RESEARCH AND DEVELOP-
    4  MENT AUTHORITY;
    5    (B) PLANNED ANNUAL EXPENDITURES INCLUDING ALL COSTS OF  A  MINIMUM  OF
    6  FIFTY  MILLION  DOLLARS COMMENCING IN CALENDAR YEAR TWO THOUSAND SIXTEEN
    7  AND SUSTAINED EACH YEAR THROUGH CALENDAR YEAR TWO THOUSAND TWENTY-SIX;
    8    (C) A DIVERSITY OF PROJECT SIZES, GEOGRAPHIC DISTRIBUTION, AND PARTIC-
    9  IPATION AMONG CUSTOMER CLASSES, SUBJECT TO COST-EFFECTIVENESS  CONSIDER-
   10  ATIONS;
   11    (D)  INCENTIVE STRUCTURES THAT MAXIMIZE COST-EFFECTIVENESS AND PRACTI-
   12  CALITY THROUGH  COMPETITIVE  PROCUREMENTS,  STANDING-OFFERS,  PRODUCTION
   13  INCENTIVES OR CAPACITY INCENTIVES AT THE WHOLESALE OR RETAIL LEVEL AS IN
   14  THE  JUDGMENT OF THE COMMISSION, IN CONSULTATION WITH THE NEW YORK INDE-
   15  PENDENT SYSTEM OPERATOR, PROVIDE FOR THE MOST EFFECTIVE PROGRAM;
   16    (E) INCENTIVE STRUCTURES THAT TAKE  INTO  CONSIDERATION  THE  ECONOMIC
   17  BENEFITS TO THE STATE OF NEW YORK;
   18    (F)  PROGRAM  DESIGNS  THAT  TAKE  INTO CONSIDERATION THE AVOIDANCE OF
   19  LONG-TERM COSTS TO THE TRANSMISSION AND DISTRIBUTION SYSTEM AND  MINIMI-
   20  ZATION OF PEAK LOAD IN CONSTRAINED AREAS;
   21    (G)  ANNUAL  REPORTS  ON  THE  ACHIEVEMENTS  AND  EFFECTIVENESS OF THE
   22  PROGRAM; AND
   23    (H) SUCH OTHER ISSUES DEEMED APPROPRIATE BY THE COMMISSION.
   24    S 2. Sections 1020-ii, 1020-jj and 1020-kk of the  public  authorities
   25  law,  as  renumbered  by chapter 388 of the laws of 2011, are renumbered
   26  sections 1020-jj, 1020-kk and 1020-ll and a new section 1020-ii is added
   27  to read as follows:
   28    S 1020-II. ESTABLISHMENT OF FUEL CELL INCENTIVE PROGRAM. 1. AS USED IN
   29  THIS SECTION THE TERM "QUALIFIED FUEL CELL ELECTRIC  GENERATING  SYSTEM"
   30  MEANS:    A  SYSTEM  BASED  ON  A  SOLID OXIDE, MOLTEN CARBONATE, PROTON
   31  EXCHANGE MEMBRANE OR PHOSPHORIC ACID FUEL  CELL  THAT  IS  MANUFACTURED,
   32  INSTALLED  AND  OPERATED  IN  ACCORDANCE  WITH APPLICABLE GOVERNMENT AND
   33  INDUSTRY STANDARDS, AND THAT IS INSTALLED  IN  THE  AUTHORITY'S  SERVICE
   34  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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