BILL NO A01214A
SAME AS S03993
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.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
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 adminis-
ter 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 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
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.
STATE OF NEW YORK
2015-2016 Regular Sessions
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 § 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-
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.
A. 1214--A 2
1 commission for such determination. The program modifications shall
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-
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 § 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 § 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 § 3. This act shall take effect immediately.