S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  378--A
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 4, 2023
                                ___________
 
 Introduced  by  Sens.  PARKER,  HOYLMAN-SIGAL  -- read twice and ordered
   printed, and when printed to be committed to the Committee  on  Energy
   and  Telecommunications  -- reported favorably from said committee and
   committed to the Committee on Finance --  committee  discharged,  bill
   amended,  ordered reprinted as amended and recommitted to said commit-
   tee
 
 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; (B) WHICH  IS  PHYSICALLY
 LOCATED WITHIN THE JURISDICTION OF THE NEW YORK INDEPENDENT SYSTEM OPER-
 ATOR;  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 INDEPEND-
 ENT 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 WHICH HAS SEEN  ITS  ELEC-
 TRICITY  OUTPUT  CURTAILED;  (B)  WHICH IS PHYSICALLY LOCATED WITHIN THE
 JURISDICTION OF THE NEW YORK INDEPENDENT SYSTEM OPERATOR; AND (C) DELIV-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD02373-04-3
 S. 378--A                           2
 
 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
 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;
   6.  THE  OWNER  OF  THE  ELIGIBLE  RENEWABLE  PRODUCTION  OR  ELIGIBLE
 CURTAILED RENEWABLE HYDROGEN PRODUCTION SUPPORTED AND FACILITATED BY THE
 PROGRAM PURSUANT TO THIS SECTION,  OR  A  THIRD  PARTY  ACTING  ON  SUCH
 OWNER'S  BEHALF, TO COMPLY WITH THE PROVISIONS OF SECTION SIXTY-SIX-R OF
 THE PUBLIC SERVICE LAW AND SECTION  TWO  HUNDRED  TWENTY-FOUR-D  OF  THE
 LABOR LAW; AND
   7. SUCH OTHER REQUIREMENTS AS DEEMED APPROPRIATE BY THE COMMISSION.
   § 2. This act shall take effect immediately.