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A10008 Summary:

BILL NOA10008
 
SAME ASNo Same As
 
SPONSORCusick
 
COSPNSR
 
MLTSPNSR
 
Add Art 13 13-101 & 13-102, Energy L
 
Relates to establishing a renewable hydrogen incentive and financing program to engage stakeholders to design and implement a competitive program for renewable hydrogen production for the purpose of meeting the state's clean energy and greenhouse emissions reductions targets.
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A10008 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A10008
 
SPONSOR: Cusick
  TITLE OF BILL: An act to amend the energy law, in relation to establishing a program for eligible renewable hydrogen   PURPOSE OR GENERAL IDEA OF BILL: This legislation would create a credit for hydrogen produced in New York State using renewable energy in order to further the state's clean ener- gy goals.   SUMMARY OF PROVISIONS: Section 1: Amends the Energy Law by adding a new Article 13. Article 13 defines "Eligible Renewable Hydrogen" and "Eligible Curtailed Renewable Hydrogen" in order to develop a Renewable Hydrogen Incentive and Financ- ing Program administered by the New York Energy Research and Development Authority. Section 2: Effective Date.   JUSTIFICATION: New York continues to lead the nation in the development of a 100 percent renewable energy economy with the recently enacted Climate Lead- ership and Community Protection Act. As the state works to find alterna- tives to fossil fuels, New Yorkers deserve a system that provides good paying jobs, system reliability, and flexibility. Renewable hydrogen is an emerging technology with the potential to unlock a number of benefits for the residents of this state. This legislation would provide the foundation for renewable hydrogen technology to be developed in New York. Hydrogen, the most abundant element in the universe, provides the abili- ty to store energy for later use, heat buildings, fuel electric vehi- cles, and enable industries which rely on extreme temperatures to oper- ate without fossil fuels. New York has ambitious goals related to energy storage, efficiency, transportation electrification, and job growth, all of which will need aggressive and multifaceted approaches to meet. Several markets around the world have begun to recognize the role of hydrogen in a green economy, including the Orkney Islands in northern Scotland. In the Orkney Islands, hydrogen produced by wind turbines and wave ener- gy is used in several ways (1). It is stored to be converted to elec- tricity when the wind doesn't blow, it is used in electric vehicles that run on hydrogen fuel-cells (producing no tailpipe emissions besides water and oxygen), and it has the potential to reduce "industrial heat emissions ... especially in situations where the flame needs to come into direct contact with the material being produced, such as in furnaces (2)." Hydrogen, which is inherently expensive to produce (although prices are falling as technology improves (3)), was attractive in the Orkney Island thanks to an abundance of clean energy. According to the BBC, "winds, waves and tides generate about 130% of the electricity its population needs - all of it from clean sources." Hydrogen is already being consid- ered by several utilities serving New York, including National Grid (See report from National Grid in PSC Case 19-G-0678), as an alternative fuel source and energy storage technology. Likewise, Plug Power, a hydrogen fuel cell company based in Latham, New York, is using hydrogen to fuel forklifts, delivery vehicles, and backup power systems. In New York, transmission issues have created a situation where clean energy located upstate often fails to be delivered downstate due to congestion along the interconnections. According to the New York Inde- pendent System Operator (NYISO), in 2019, "nearly 90% of the energy produced in upstate New York already is derived from carbon-free resources" while "70% of the energy produced to serve   downstate load is derived from fossil fuels (4)". Wind energy resources in New York are being curtailed as a result of the transmission issue, whereby turbines are "disconnected" from the energy grid to ensure the system is not overloaded. According to the National Grid report, converting power to renewable hydrogen "can drive more investment in renewable electricity by increasing utilization of those assets and addressing the biggest weakness of solar and wind: intermittency and storage. Rather than being curtailed during cool and sunny days or windy nights, solar and offshore wind could be converted to hydrogen ... effectively storing that energy in the form of chemical bonds." This legislation would create a Renewable Hydrogen Incentive and Financ- ing Program administered by the New York Energy Research and Development Authority that would support hydrogen produced from renewable energy sources. Hydrogen created by fossil fuels would be ineligible for this program. The program would value hydrogen created using curtailed energy at a higher rate to ensure New York is capturing all of the renewable energy created within its borders. (1) https://www.bbc.com/future/article/20190327-the-tiny- islands-lead- ing-the-way-in-hydrogen-power (2) https://www.carbonbrief.org/ccc-progress-on-low- carbon-hydrogen- must-begin-now-in-uk (3) https://www.forbes.com/sites/kensilverstein/2020/02/06/ the-cost-to- produce-and-distribute-hydrogen-from-clean- energy-will-plummet/ 52d405485897 (4) https://www.nyiso.com/documents/20142/2223020/2019- Power-Trends-Re- port.pdf/0e8d65ee-82 Oc-a718-452c-6c59b2d4818b?t=1556800999122   PRIOR LEGISLATIVE HISTORY: None.   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: None.   EFFECTIVE DATE: Immediately.
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