S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10008
 
                           I N  A S S E M B L Y
 
                               March 4, 2020
                                ___________
 
 Introduced by M. of A. CUSICK -- read once and referred to the Committee
   on Energy
 
 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:
 
   Section  1.  The  energy  law is amended by adding a new article 13 to
 read as follows:
                                ARTICLE 13
            RENEWABLE HYDROGEN INCENTIVE AND FINANCING PROGRAM
 SECTION 13-101. DEFINITIONS.
         13-102. RENEWABLE HYDROGEN INCENTIVE AND FINANCING PROGRAM.
   §  13-101. DEFINITIONS. AS USED IN THIS ARTICLE:
   1. "ELIGIBLE RENEWABLE HYDROGEN" SHALL MEAN HYDROGEN (A) PRODUCED WITH
 ELECTRICITY GENERATED  FROM  RENEWABLE  ENERGY  SYSTEMS  AS  DEFINED  BY
 SECTION  SIXTY-SIX-P  OF THE PUBLIC SERVICE LAW, AS ADDED BY CHAPTER ONE
 HUNDRED SIX OF THE LAWS OF TWO THOUSAND NINETEEN;  (B)  WHICH  IS  PHYS-
 ICALLY  LOCATED  WITHIN  THE  JURISDICTION  OF  THE NEW YORK INDEPENDENT
 SYSTEM OPERATOR; AND (C) DELIVERED TO A  CUSTOMER  IN  NEW  YORK  STATE,
 WHERE  SUCH DELIVERY SHALL BE SUBJECT TO INDEPENDENT VERIFICATION BY THE
 NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY OR A  QUALIFIED
 INDEPENDENT PARTY.
   2. "ELIGIBLE CURTAILED RENEWABLE HYDROGEN" MEANS HYDROGEN (A) PRODUCED
 WITH  ELECTRICITY GENERATED FROM A RENEWABLE ENERGY SYSTEM AS DEFINED BY
 SECTION SIXTY-SIX-P OF THE PUBLIC SERVICE LAW, AS ADDED BY  CHAPTER  ONE
 HUNDRED  SIX  OF  THE  LAWS OF TWO THOUSAND NINETEEN, WHICH HAS SEEN ITS
 ELECTRICITY OUTPUT CURTAILED; (B) WHICH IS PHYSICALLY LOCATED WITHIN THE
 JURISDICTION OF THE NEW YORK INDEPENDENT SYSTEM OPERATOR; AND (C) DELIV-
 ERED TO A CUSTOMER IN NEW YORK  STATE,  WHERE  SUCH  DELIVERY  SHALL  BE
 SUBJECT  TO  INDEPENDENT  VERIFICATION  BY  THE  NEW  YORK  STATE ENERGY
 RESEARCH AND DEVELOPMENT AUTHORITY OR A QUALIFIED INDEPENDENT PARTY.
   §  13-102.  RENEWABLE  HYDROGEN  INCENTIVE  AND   FINANCING   PROGRAM.
 NOTWITHSTANDING  ANY  OTHER PROVISION OF LAW TO THE CONTRARY, INCLUDING,
 BUT NOT LIMITED TO, ANY ORDER, RULE OR REGULATION  PROMULGATED  PURSUANT
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD15048-02-0

 A. 10008                            2
 
 TO  THE PUBLIC SERVICE LAW, THE PUBLIC AUTHORITIES LAW, AND/OR THE STATE
 ADMINISTRATIVE PROCEDURE ACT, THE PUBLIC SERVICE COMMISSION, IN  CONSUL-
 TATION  WITH THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORI-
 TY,  SHALL ADOPT A PROGRAM WITHIN ONE YEAR OF THE EFFECTIVE DATE OF THIS
 SECTION TO PROVIDE SUPPORT TO AND FOR ELIGIBLE RENEWABLE  HYDROGEN  AND,
 AT  A  GREATER  RATE,  ELIGIBLE  CURTAILED RENEWABLE HYDROGEN, THROUGH A
 PROCEEDING TO ENGAGE STAKEHOLDERS IN ORDER TO  DESIGN  AND  IMPLEMENT  A
 COMPETITIVE  PROGRAM  FOR ELIGIBLE RENEWABLE HYDROGEN PRODUCTION FOR THE
 PURPOSE OF MEETING THE STATE'S CLEAN  ENERGY  AND  GREENHOUSE  EMISSIONS
 REDUCTIONS TARGETS. THE PROGRAM SHALL REQUIRE:
   1.  ADMINISTRATION  BY THE NEW YORK STATE ENERGY RESEARCH AND DEVELOP-
 MENT AUTHORITY;
   2. A DIVERSITY OF PROJECT SIZES, GEOGRAPHIC DISTRIBUTION, AND  PARTIC-
 IPATION  AMONG CUSTOMER CLASSES, SUBJECT TO COST-EFFECTIVENESS CONSIDER-
 ATIONS;
   3. INCENTIVE OR FINANCING STRUCTURES THAT MAXIMIZE  COST-EFFECTIVENESS
 AND  PRACTICALITY  THROUGH  COMPETITIVE  PROCUREMENTS,  STANDING-OFFERS,
 PRODUCTION INCENTIVES OR CAPACITY INCENTIVES AT THE WHOLESALE OR  RETAIL
 LEVEL AS, IN THE JUDGMENT OF THE COMMISSION, PROVIDE FOR THE MOST EFFEC-
 TIVE PROGRAM;
   4. PROGRAM DESIGNS THAT TAKE INTO CONSIDERATION THE AVOIDANCE OF LONG-
 TERM  COSTS TO THE TRANSMISSION AND DISTRIBUTION SYSTEM AND MINIMIZATION
 OF PEAK LOAD IN CONSTRAINED AREAS;
   5. ANNUAL  REPORTS  ON  THE  ACHIEVEMENTS  AND  EFFECTIVENESS  OF  THE
 PROGRAM; AND
   6. SUCH OTHER ISSUES DEEMED APPROPRIATE BY THE COMMISSION.
   § 2. This act shall take effect immediately.