Senate Bill S7132

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7132
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                               April 1, 2025
                                ___________
 
 Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
   printed to be committed to the Committee on  Energy  and  Telecommuni-
   cations
 
 AN  ACT  to  amend  the public service law, in relation to requiring the
   establishment of a renewable hydrogen incentive program

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The public service law is amended by adding a new section
 74-c to read as follows:
   § 74-C. ESTABLISHMENT OF A RENEWABLE HYDROGEN  INCENTIVE  PROGRAM.  1.
 THE LEGISLATURE HEREBY FINDS AND DECLARES THAT:
   (A)  THE  CLIMATE  LEADERSHIP  AND  COMMUNITY  PROTECTION  ACT (CLCPA)
 REQUIRES SIGNIFICANT REDUCTIONS IN GREENHOUSE GAS EMISSIONS, INCLUDING A
 FORTY PERCENT REDUCTION IN STATEWIDE GREENHOUSE  GAS  EMISSIONS  BY  TWO
 THOUSAND THIRTY AND AN EIGHTY-FIVE PERCENT REDUCTION IN STATEWIDE GREEN-
 HOUSE GAS EMISSIONS BY TWO THOUSAND FIFTY;
   (B)  IN  ORDER  TO  MEET  THESE AGGRESSIVE TARGETS, IT IS NECESSARY TO
 FURTHER DEVELOP RENEWABLE ENERGY SOURCES, INCLUDING RENEWABLE HYDROGEN;
   (C) RENEWABLE HYDROGEN HAS  SIGNIFICANT  POTENTIAL  TO  CONTRIBUTE  TO
 RESPONSIBLE  DECARBONIZATION IN THE FUTURE, AND THERE ARE EFFORTS UNDER-
 WAY IN NEW YORK, AT THE FEDERAL LEVEL  AND  GLOBALLY  TO  DETERMINE  THE
 POTENTIAL OF THIS TECHNOLOGY;
   (D) RENEWABLE HYDROGEN HAS THE ABILITY TO DECARBONIZE SECTORS THAT ARE
 DIFFICULT  TO  ELECTRIFY,  INCLUDING  THE  TRANSPORTATION AND INDUSTRIAL
 SECTORS, AS WELL AS THE GAS PIPELINE SYSTEM;
   (E) DECARBONIZATION OF THESE SECTORS WILL PROVIDE SUBSTANTIAL BENEFITS
 TO DISADVANTAGED COMMUNITIES;
   (F) SUPPORTING THE  FURTHER  DEVELOPMENT  OF  THE  RENEWABLE  HYDROGEN
 INDUSTRY  WILL  OFFER NEW OPPORTUNITIES FOR DEVELOPING AND EMPLOYING NEW
 YORK'S WORKFORCE AND WILL HELP ENSURE THAT THE AVAILABILITY OF WELL-PAID
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11293-01-5
 S. 7132                             2
              

 
 JOBS WITH GOOD BENEFITS WILL CONTINUE IN NEW YORK'S CLEAN ENERGY FUTURE;
 AND
   (G)  THEREFORE,  IT  IS  THE  INTENT OF THE LEGISLATURE TO SUPPORT THE
 DEVELOPMENT OF THE RENEWABLE HYDROGEN INDUSTRY IN NEW YORK IN  ORDER  TO
 ACHIEVE  THE  GREENHOUSE  GAS  EMISSIONS  REDUCTION  GOALS OF THE CLCPA,
 PROVIDE BENEFITS TO DISADVANTAGED COMMUNITIES, CREATE JOBS, AND  PROVIDE
 NEW CLEAN TECHNOLOGY TO DECARBONIZE CHALLENGING SECTORS.
   2. AS USED IN THIS SECTION:
   (A)  "ELIGIBLE  HYDROGEN  PROJECT" MEANS A PROJECT LOCATED IN NEW YORK
 RELATED TO THE PRODUCTION, PROCESSING, DELIVERY, STORAGE OR END  USE  OF
 RENEWABLE  HYDROGEN FOR THE PURPOSE OF REDUCING GREENHOUSE GAS EMISSIONS
 CONSISTENT WITH THE CLCPA;
   (B) "RENEWABLE HYDROGEN" MEANS HYDROGEN PRODUCED USING RENEWABLE ENER-
 GY SOURCES AND/OR PRODUCED WITH A CARBON INTENSITY EQUAL TO OR LESS THAN
 TWO KILOGRAMS OF CARBON DIOXIDE  EQUIVALENT  PRODUCED  AT  THE  SITE  OF
 PRODUCTION PER KILOGRAM OF HYDROGEN PRODUCED; AND
   (C)  "RENEWABLE ENERGY SOURCES" MEANS HYDROELECTRIC, GEOTHERMAL, SOLAR
 PHOTOVOLTAIC, WIND, TIDAL, WAVE, BIOMASS OR BIOGAS ENERGY SOURCES.
   3. NO LATER THAN DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY-FIVE,  THE
 COMMISSION  SHALL,  IN  CONSULTATION  WITH  THE  NEW  YORK  STATE ENERGY
 RESEARCH AND DEVELOPMENT AUTHORITY, ESTABLISH A PROGRAM TO  SUPPORT  THE
 PRODUCTION, PROCESSING, DELIVERY, STORAGE, OR END USE OF HYDROGEN IN NEW
 YORK  FOR  THE  PURPOSE OF MEETING THE GREENHOUSE GAS EMISSIONS GOALS OF
 THE CLCPA. IN ESTABLISHING THE PROGRAM, THE COMMISSION, IN  CONSULTATION
 WITH  THE  NEW  YORK  STATE  ENERGY  RESEARCH AND DEVELOPMENT AUTHORITY,
 SHALL:
   (A)  ESTABLISH  CRITERIA  AND  GUIDELINES  FOR  FINANCIAL   INCENTIVES
 PROVIDED FOR ELIGIBLE HYDROGEN PROJECTS;
   (B)  PROVIDE  FINANCIAL  INCENTIVES,  INCLUDING  APPROPRIATE  RATEBASE
 TREATMENT, FOR ELIGIBLE HYDROGEN PROJECTS  THAT  PROVIDE  REDUCTIONS  IN
 GREENHOUSE  GAS EMISSIONS, PRIORITIZING THOSE ELIGIBLE HYDROGEN PROJECTS
 THAT PROVIDE WORKFORCE BENEFITS, INCLUDING JOB  RETENTION,  CREATION  OR
 TRAINING, OR BENEFITS TO DISADVANTAGED COMMUNITIES AS DEFINED IN ARTICLE
 SEVENTY-FIVE OF THE ENVIRONMENTAL CONSERVATION LAW;
   (C)  AUTHORIZE  GAS  CORPORATIONS TO DEVELOP QUALITY STANDARDS FOR THE
 BLENDING OF RENEWABLE HYDROGEN INTO THE GAS PIPELINE SYSTEM; AND
   (D) IDENTIFY ANY BARRIERS TO THE WIDESPREAD DEVELOPMENT  OF  RENEWABLE
 HYDROGEN, INCLUDING WITHIN DISADVANTAGED COMMUNITIES AS DEFINED IN ARTI-
 CLE SEVENTY-FIVE OF THE ENVIRONMENTAL CONSERVATION LAW.
   § 2. This act shall take effect immediately.