S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    460
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              January 9, 2017
                                ___________
 
 Introduced by M. of A. PAULIN -- read once and referred to the Committee
   on Energy
 
 AN  ACT  to amend the public service law and the public authorities law,
   in relation to establishing a fuel cell 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
 66-o to read as follows:
   § 66-O. FUEL CELL INCENTIVE PROGRAM. 1. AS USED IN THIS SECTION:
   (A) "ELECTRIC DISTRIBUTION COMPANY" MEANS AN  INVESTOR-OWNED  ELECTRIC
 CORPORATION  THAT DISTRIBUTES AND DELIVERS ELECTRICITY WITHIN THIS STATE
 AND HAS ANNUAL REVENUES IN EXCESS OF TWO HUNDRED MILLION DOLLARS; AND
   (B) "QUALIFIED FUEL CELL ELECTRIC GENERATING SYSTEM" MEANS:  A  SYSTEM
 BASED  ON  A  SOLID OXIDE, MOLTEN CARBONATE, PROTON EXCHANGE MEMBRANE OR
 PHOSPHORIC ACID FUEL CELL THAT IS MANUFACTURED, INSTALLED  AND  OPERATED
 IN  ACCORDANCE  WITH  APPLICABLE  GOVERNMENT AND INDUSTRY STANDARDS, AND
 THAT IS OPERATED IN  COMPLIANCE  WITH  ANY  STANDARDS  AND  REQUIREMENTS
 ESTABLISHED  IN  THIS  CHAPTER OR BY ORDER OF THE PUBLIC SERVICE COMMIS-
 SION.
   2. WITHIN FORTY-FIVE DAYS OF THE EFFECTIVE DATE OF THIS  SECTION,  THE
 COMMISSION  SHALL  COMMENCE  THE  CONSIDERATION  OF MODIFICATIONS TO ITS
 EXISTING PROGRAMS THAT ENCOURAGE THE DEVELOPMENT OF QUALIFIED FUEL  CELL
 ELECTRIC  GENERATING SYSTEMS AND, NO LATER THAN JANUARY FIRST, TWO THOU-
 SAND EIGHTEEN, THE COMMISSION SHALL MAKE  A  DETERMINATION  ESTABLISHING
 MODIFICATIONS TO ITS EXISTING PROGRAMS THAT ENCOURAGE THE DEVELOPMENT OF
 QUALIFIED FUEL CELL GENERATING SYSTEMS IN CONFORMANCE WITH THIS SECTION.
 THE DEPARTMENT SHALL CONSULT WITH THE NEW YORK STATE ENERGY RESEARCH AND
 DEVELOPMENT  AUTHORITY  IN THE PREPARATION OF ITS RECOMMENDATIONS TO THE
 COMMISSION FOR  SUCH  DETERMINATION.  THE  PROGRAM  MODIFICATIONS  SHALL
 REQUIRE:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01075-01-7
              

 A. 460                              2
 
   (A)  ADMINISTRATION BY THE NEW YORK STATE ENERGY RESEARCH AND DEVELOP-
 MENT AUTHORITY;
   (B)  PLANNED  ANNUAL  EXPENDITURES INCLUDING ALL COSTS OF A MINIMUM OF
 FIFTY MILLION DOLLARS COMMENCING IN CALENDAR YEAR TWO THOUSAND  EIGHTEEN
 AND SUSTAINED EACH YEAR THROUGH CALENDAR YEAR TWO THOUSAND TWENTY-EIGHT;
   (C) A DIVERSITY OF PROJECT SIZES, GEOGRAPHIC DISTRIBUTION, AND PARTIC-
 IPATION  AMONG CUSTOMER CLASSES, SUBJECT TO COST-EFFECTIVENESS CONSIDER-
 ATIONS;
   (D) INCENTIVE STRUCTURES THAT MAXIMIZE COST-EFFECTIVENESS AND  PRACTI-
 CALITY  THROUGH  COMPETITIVE  PROCUREMENTS,  STANDING-OFFERS, PRODUCTION
 INCENTIVES OR CAPACITY INCENTIVES AT THE WHOLESALE OR RETAIL LEVEL AS IN
 THE JUDGMENT OF THE COMMISSION, IN CONSULTATION WITH THE NEW YORK  INDE-
 PENDENT SYSTEM OPERATOR, PROVIDE FOR THE MOST EFFECTIVE PROGRAM;
   (E)  INCENTIVE  STRUCTURES  THAT  TAKE INTO CONSIDERATION THE ECONOMIC
 BENEFITS TO THE STATE OF NEW YORK;
   (F) PROGRAM DESIGNS THAT TAKE  INTO  CONSIDERATION  THE  AVOIDANCE  OF
 LONG-TERM  COSTS TO THE TRANSMISSION AND DISTRIBUTION SYSTEM AND MINIMI-
 ZATION OF PEAK LOAD IN CONSTRAINED AREAS;
   (G) ANNUAL REPORTS  ON  THE  ACHIEVEMENTS  AND  EFFECTIVENESS  OF  THE
 PROGRAM; AND
   (H) SUCH OTHER ISSUES DEEMED APPROPRIATE BY THE COMMISSION.
   §  2.  Sections 1020-ii, 1020-jj and 1020-kk of the public authorities
 law, as renumbered by chapter 388 of the laws of  2011,  are  renumbered
 sections 1020-jj, 1020-kk and 1020-ll and a new section 1020-ii is added
 to read as follows:
   § 1020-II. ESTABLISHMENT OF FUEL CELL INCENTIVE PROGRAM. 1. AS USED IN
 THIS  SECTION  THE TERM "QUALIFIED FUEL CELL ELECTRIC GENERATING SYSTEM"
 MEANS:   A SYSTEM BASED ON  A  SOLID  OXIDE,  MOLTEN  CARBONATE,  PROTON
 EXCHANGE  MEMBRANE  OR  PHOSPHORIC  ACID FUEL CELL THAT IS MANUFACTURED,
 INSTALLED AND OPERATED IN  ACCORDANCE  WITH  APPLICABLE  GOVERNMENT  AND
 INDUSTRY  STANDARDS,  AND  THAT  IS INSTALLED IN THE AUTHORITY'S SERVICE
 TERRITORY AFTER JANUARY FIRST, TWO THOUSAND EIGHTEEN.
   2. THE AUTHORITY SHALL CONTINUE TO ENCOURAGE THE DEVELOPMENT OF QUALI-
 FIED FUEL CELL ELECTRIC GENERATING  SYSTEMS  IN  ITS  SERVICE  TERRITORY
 THROUGH  IMPLEMENTATION  OF THE FUEL CELL INCENTIVE PROGRAM. THE PROGRAM
 SHALL REQUIRE:
   (A) PLANNED ANNUAL EXPENDITURES INCLUDING  ALL  COSTS  OF  AT  MINIMUM
 FIFTEEN  MILLION  DOLLARS COMMENCING IN CALENDAR YEAR TWO THOUSAND EIGH-
 TEEN AND SUSTAINED EACH YEAR THROUGH CALENDAR YEAR TWO THOUSAND  TWENTY-
 EIGHT;
   (B) A DIVERSITY OF PROJECT TYPES;
   (C) PROGRAM ADMINISTRATION AND DELIVERY;
   (D)  INCENTIVE  STRUCTURES  THAT  TAKE INTO CONSIDERATION THE ECONOMIC
 BENEFITS TO THE STATE OF NEW YORK;
   (E) PROGRAM DESIGNS THAT TAKE  INTO  CONSIDERATION  THE  AVOIDANCE  OF
 LONG-TERM  COSTS TO THE TRANSMISSION AND DISTRIBUTION SYSTEM AND MINIMI-
 ZATION OF PEAK LOAD IN CONSTRAINED AREAS AND THAT MAXIMIZES  COST-EFFEC-
 TIVENESS THROUGH COMPETITIVE PROCUREMENTS;
   (F)  ANNUAL  REPORTS  ON  THE  ACHIEVEMENTS  AND  EFFECTIVENESS OF THE
 PROGRAM; AND
   (G) ANY OTHER OBJECTIVES THE AUTHORITY MAY ESTABLISH.
   § 3. This act shall take effect immediately.