S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5985
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              March 24, 2023
                                ___________
 
 Introduced  by  Sen. SANDERS -- 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 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-v to read as follows:
   § 66-V. 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 TWENTY-FOUR, 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.
                                                            LBD04818-02-3
              

 S. 5985                             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  TWENTY-
 FOUR  AND SUSTAINED EACH YEAR THROUGH CALENDAR YEAR TWO THOUSAND THIRTY-
 FOUR;
   (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. The public authorities law is amended by  adding  a  new  section
 1020-nn to read as follows:
   § 1020-NN. 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 TWENTY-FOUR.
   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 TWEN-
 TY-FOUR AND SUSTAINED EACH YEAR THROUGH CALENDAR YEAR TWO THOUSAND THIR-
 TY-FOUR;
   (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.