S T A T E O F N E W Y O R K
________________________________________________________________________
3788
2021-2022 Regular Sessions
I N A S S E M B L Y
January 28, 2021
___________
Introduced by M. of A. CUSICK, ENGLEBRIGHT -- 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.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06861-01-1
A. 3788 2
§ 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
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.