BILL NO A01214
SAME AS No same as
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.
TITLE OF BILL: An act to amend the public service law and the public
authorities law, in relation to establishing a fuel cell incentive
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.
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
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.
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.
S T A T E O F N E W Y O R K
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
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
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
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-
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.