A01214 Summary:

BILL NOA01214B
 
SAME ASSAME AS S03993-A
 
SPONSORPaulin
 
COSPNSR
 
MLTSPNSR
 
Add 66-o, Pub Serv L; ren 1020-ii, 1020-jj & 1020-kk to be 1020-jj, 1020-kk & 1020-ll, add 1020-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 NOA01214B
 
01/08/2015referred to energy
02/10/2015reported referred to ways and means
02/23/2015amend and recommit to ways and means
02/23/2015print number 1214a
01/06/2016referred to energy
02/23/2016amend and recommit to energy
02/23/2016print number 1214b
02/25/2016reported referred to ways and means
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A01214 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A1214B
 
SPONSOR: Paulin
  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 2017. Section 2 directs the Long Island Power Authority to create and adminis- ter a fuel cell incentive program by 2017. Section 3 Sets forth the effective date.   JUSTIFICATION: New York is a nationwide leader in the development of clean energy tech- nologies. 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 reli- ability to the energy grid. Fuel cells have not benefitted from a long- term incentive program and therefore, installations and industry devel- opment 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 chal- lenges. 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:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         1214--B
 
                               2015-2016 Regular Sessions
 
                   IN ASSEMBLY
 
                                     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 -- recommitted to the Committee on
          Energy in accordance  with  Assembly  Rule  3,  sec.  2  --  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    § 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 seventeen, 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.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04872-05-6

        A. 1214--B                          2
 
     1  The department shall consult with the New York state energy research and
     2  development  authority  in the preparation of its recommendations to the
     3  commission for  such  determination.  The  program  modifications  shall
     4  require:
     5    (a)  administration by the New York state energy research and develop-
     6  ment authority;
     7    (b) planned annual expenditures including all costs of  a  minimum  of
     8  fifty million dollars commencing in calendar year two thousand seventeen
     9  and sustained each year through calendar year two thousand twenty-seven;
    10    (c) a diversity of project sizes, geographic distribution, and partic-
    11  ipation  among customer classes, subject to cost-effectiveness consider-
    12  ations;
    13    (d) incentive structures that maximize cost-effectiveness and  practi-
    14  cality  through  competitive  procurements,  standing-offers, production
    15  incentives or capacity incentives at the wholesale or retail level as in
    16  the judgment of the commission, in consultation with the New York  inde-
    17  pendent system operator, provide for the most effective program;
    18    (e)  incentive  structures  that  take into consideration the economic
    19  benefits to the state of New York;
    20    (f) program designs that take  into  consideration  the  avoidance  of
    21  long-term  costs to the transmission and distribution system and minimi-
    22  zation of peak load in constrained areas;
    23    (g) annual reports  on  the  achievements  and  effectiveness  of  the
    24  program; and
    25    (h) such other issues deemed appropriate by the commission.
    26    §  2.  Sections 1020-ii, 1020-jj and 1020-kk of the public authorities
    27  law, as renumbered by chapter 388 of the laws of  2011,  are  renumbered
    28  sections 1020-jj, 1020-kk and 1020-ll and a new section 1020-ii is added
    29  to read as follows:
    30    § 1020-ii. Establishment of fuel cell incentive program. 1. As used in
    31  this  section  the term "qualified fuel cell electric generating system"
    32  means:   a system based on  a  solid  oxide,  molten  carbonate,  proton
    33  exchange  membrane  or  phosphoric  acid fuel cell that is manufactured,
    34  installed and operated in  accordance  with  applicable  government  and
    35  industry  standards,  and  that  is installed in the authority's service
    36  territory after January first, two thousand seventeen.
    37    2. The authority shall continue to encourage the development of quali-
    38  fied fuel cell electric generating  systems  in  its  service  territory
    39  through  implementation  of the fuel cell incentive program. The program
    40  shall require:
    41    (a) planned annual expenditures including  all  costs  of  at  minimum
    42  fifteen  million dollars commencing in calendar year two thousand seven-
    43  teen and sustained each year through calendar year two thousand  twenty-
    44  seven;
    45    (b) a diversity of project types;
    46    (c) program administration and delivery;
    47    (d)  incentive  structures  that  take into consideration the economic
    48  benefits to the state of New York;
    49    (e) program designs that take  into  consideration  the  avoidance  of
    50  long-term  costs to the transmission and distribution system and minimi-
    51  zation of peak load in constrained areas and that maximizes  cost-effec-
    52  tiveness through competitive procurements;
    53    (f)  annual  reports  on  the  achievements  and  effectiveness of the
    54  program; and
    55    (g) any other objectives the authority may establish.
    56    § 3. This act shall take effect immediately.
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