Creates the New York state consortium on the development of a hydrogen economy

Section 2 creates a new section of the public authority law, directing NYSERDA to convene the NYS Consortium on the Development of a Hydrogen Economy, which is directed to consist of representatives from relevant state agencies, as well as individuals from private industry and academia with expertise in hydrogen fuel cell research and development; and also, hydrogen infrastructure.

This consortium will develop a report to be delivered to the executive and legislature by September 1, 2014, and annually thereafter, containing an implementation strategy to advance hydrogen-based technology, infrastructure deployment, and fuel cell development and production in New York State. In Particular, there report will:

* Identify the technical and non-technical barriers to the broad scale commercialization of hydrogen-based technologies and fuel cells;

* promote long-term partnerships with automotive manufacturers as well as with federal and state research entities, small business, and industry that actively supports those industries associated with the automotive industry and their suppliers;

* facilitate strategies to promote, retain and expand hydrogen-based technologies and fuel cell industries in New York state, including the development of near-term niche-market applications for hydrogen fuel cells;

* facilitate a manufacturing research and development effort that demonstrates processes and technologies that will reduce the costs associated with hydrogen production, delivery, storage and fuel cell development and production that will further promote market development and penetration while ensuring quality and reliability;

* facilitate the installation of infrastructure for hydrogen production, storage, transportation, fueling capability, and refueling stations;

* develop appropriate safety, codes, standards, regulation and educational materials regarding hydrogen-based technologies and fuel cells, particularly relative to new fueling stations;

* facilitate the development and purchase of hydrogen and fuel cell vehicles for use by state fleets public or private sector fleets, mass transit fleets, and school bus fleets;

* consult with the New York State Department of Transportation and the New York State Thruway Authority to identify areas within the state transportation system that would benefit from the integration of potential mass transit and fleet transit locations with hydrogen-based technology and fuel cell refueling stations;

* identify areas in the electric and natural gas distribution system of the state that would be affected by the development hydrogen-based technology or fuel cell technology;

* identify potential sources of federal funds and coordinate state, university, public and private sector efforts to secure such funds; and,

* identify potential amendments to state laws, regulations, or policies to promote hydrogen-based technology and fuel cells.

Section 3 authorizes NYSERDA to oversee this effort

Justification

New York State has demonstrated a steadfast commitment to becoming a leader in reducing greenhouse gas (GHG) emissions. In 2009, an Executive Order charged the New York State Energy and Research Development Authority (NYSERDA) with developing a plan of action to reduce GHG emissions by 80 percent below 1990 levels in New York State. That Executive Order created the Climate Action Council, which spent much of 2010 assessing how all economic sectors can reduce emission and adapt to climate change, and identify the extent to which such actions support New York's goals for a clean energy economy.

Current methods of transportation are responsible for over a third of the Carbon Dioxide (CO2) released into the atmosphere by end-use sectors. It is now a fait accompli that our energy future will feature a growing integration of alternative fuel sources. In addition to hybrid electric vehicles, which have been integrated into the marketplace for the past decade, the two alternative vehicle modalities that are on the cusp of widespread commercialization are Plug-in Hybrid Electric Vehicles (PHEV) and Hydrogen Fuel Cell Vehicles (HFCV). For years, alternative energy experts have argued that there is no "silver bullet" to solving our energy problems. Rather, it will take a blend of alternative fuel applications, each with its own attributes.

New York is already a well-established world leader in hydrogen fuel cell research and development and is a growing leader in research of battery powered vehicle technology. We are the epicenter of American hydrogen fuel cell research, we have a skilled workforce and we have the capability to produce fuel cells. Furthermore, we possess the natural resources (ie: hydroelectric power, wind, photovoltaics, bin-fuels) necessary to produce a considerable supply of green hydrogen, the use of which can make fuel cell vehicles nearly 100 percent efficient. All of the components, through a well-outlined plan, could be used to transform New York State into the new "Silicon Valley" for hydrogen fuel cell research and development, which could forever redefine our state's economy and create thousands of long-term jobs.

Furthermore, in 2005, NYSERDA developed a bold "Hydrogen Roadmap," which provided a blueprint for HFCV deployment in New York State, However, the past few years have seen the federal government depart from the considerable focus it had placed on hydrogen fuel cell research and development, placing more focus on battery applications. New York has continued to invest in fuel cell research, however, not

near to the extent necessary to implement NYSERDA's bold vision found within the Roadmap.

The rest of the world has continued to recognize the promise of hydrogen, especially its capability to provide heavy-load, long distance travel, relative to battery-powered vehicles. More importantly, foreign governments, through strategic industry partnerships, have begun to make the necessary investments in this area. Germany has already executed a plan to put hundreds of thousands of FCVs on their roads by 2020. Japan and other Europeans countries are following suit. The United States is now dangerously close to losing its place as a predominant power in a field that will almost certainly have an integral place in our daily lives for years to come.

The proposed NYS Consortium on the Development of a Hydrogen Economy will be comprised of appropriate state government personnel, industry representatives and members of academia. its purpose will be to identify the technical and non-technical barriers to the broad scale commercialization of hydrogen-based technologies and fuel cells with major automotive manufacturers. After this occurs, it will facilitate strategies to promote, retain and expand hydrogen-based technologies and fuel cell industries in New York State, namely through the installation of infrastructure for hydrogen production, storage, transportation, fueling capability and refueling stations. The council will also be charged with developing appropriate safety codes, standards, regulations and educational materials regarding hydrogen-based technologies and fuel cells. Finally, it will identify areas within the state transportation system that would benefit from the integration of potential mass transit and fleet transit locations with hydrogen-based technology and fuel cells refueling stations.

Prior legislative history

A.4783 of 2011-2012 Referred to Corporations, Authorities and Commissions

Fiscal implications

The Consortium will develop its report using existing revenues from NYSERDA.

Effective date

Immediately