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.
STATE OF NEW YORK
________________________________________________________________________
3281
2021-2022 Regular Sessions
IN SENATE
January 28, 2021
___________
Introduced by Sens. PARKER, MAY -- read twice and ordered printed, and
when printed to be committed to the Committee on Energy and Telecommu-
nications
AN ACT to amend the energy law, in relation to establishing a program
for eligible renewable hydrogen
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The energy law is amended by adding a new article 13 to
2 read as follows:
3 ARTICLE 13
4 RENEWABLE HYDROGEN INCENTIVE AND FINANCING PROGRAM
5 Section 13-101. Definitions.
6 13-102. Renewable hydrogen incentive and financing program.
7 § 13-101. Definitions. As used in this article:
8 1. "Eligible renewable hydrogen" shall mean hydrogen (a) produced with
9 electricity generated from renewable energy systems as defined by
10 section sixty-six-p of the public service law, as added by chapter one
11 hundred six of the laws of two thousand nineteen; (b) which is phys-
12 ically located within the jurisdiction of the New York independent
13 system operator; and (c) delivered to a customer in New York state,
14 where such delivery shall be subject to independent verification by the
15 New York state energy research and development authority or a qualified
16 independent party.
17 2. "Eligible curtailed renewable hydrogen" means hydrogen (a) produced
18 with electricity generated from a renewable energy system as defined by
19 section sixty-six-p of the public service law, as added by chapter one
20 hundred six of the laws of two thousand nineteen, which has seen its
21 electricity output curtailed; (b) which is physically located within the
22 jurisdiction of the New York independent system operator; and (c) deliv-
23 ered to a customer in New York state, where such delivery shall be
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD06861-01-1
S. 3281 2
1 subject to independent verification by the New York state energy
2 research and development authority or a qualified independent party.
3 § 13-102. Renewable hydrogen incentive and financing program.
4 Notwithstanding any other provision of law to the contrary, including,
5 but not limited to, any order, rule or regulation promulgated pursuant
6 to the public service law, the public authorities law, and/or the state
7 administrative procedure act, the public service commission, in consul-
8 tation with the New York state energy research and development authori-
9 ty, shall adopt a program within one year of the effective date of this
10 section to provide support to and for eligible renewable hydrogen and,
11 at a greater rate, eligible curtailed renewable hydrogen, through a
12 proceeding to engage stakeholders in order to design and implement a
13 competitive program for eligible renewable hydrogen production for the
14 purpose of meeting the state's clean energy and greenhouse emissions
15 reductions targets. The program shall require:
16 1. administration by the New York state energy research and develop-
17 ment authority;
18 2. a diversity of project sizes, geographic distribution, and partic-
19 ipation among customer classes, subject to cost-effectiveness consider-
20 ations;
21 3. incentive or financing structures that maximize cost-effectiveness
22 and practicality through competitive procurements, standing-offers,
23 production incentives or capacity incentives at the wholesale or retail
24 level as, in the judgment of the commission, provide for the most effec-
25 tive program;
26 4. program designs that take into consideration the avoidance of long-
27 term costs to the transmission and distribution system and minimization
28 of peak load in constrained areas;
29 5. annual reports on the achievements and effectiveness of the
30 program; and
31 6. such other issues deemed appropriate by the commission.
32 § 2. This act shall take effect immediately.
