STATE OF NEW YORK ________________________________________________________________________ 460 2017-2018 Regular Sessions IN ASSEMBLY 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: 1 Section 1. The public service law is amended by adding a new section 2 66-o to read as follows: 3 § 66-o. Fuel cell incentive program. 1. As used in this section: 4 (a) "Electric distribution company" means an investor-owned electric 5 corporation that distributes and delivers electricity within this state 6 and has annual revenues in excess of two hundred million dollars; and 7 (b) "Qualified fuel cell electric generating system" means: a system 8 based on a solid oxide, molten carbonate, proton exchange membrane or 9 phosphoric acid fuel cell that is manufactured, installed and operated 10 in accordance with applicable government and industry standards, and 11 that is operated in compliance with any standards and requirements 12 established in this chapter or by order of the public service commis- 13 sion. 14 2. Within forty-five days of the effective date of this section, the 15 commission shall commence the consideration of modifications to its 16 existing programs that encourage the development of qualified fuel cell 17 electric generating systems and, no later than January first, two thou- 18 sand eighteen, the commission shall make a determination establishing 19 modifications to its existing programs that encourage the development of 20 qualified fuel cell generating systems in conformance with this section. 21 The department shall consult with the New York state energy research and 22 development authority in the preparation of its recommendations to the 23 commission for such determination. The program modifications shall 24 require: EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD01075-01-7

A. 460 2 1 (a) administration by the New York state energy research and develop- 2 ment authority; 3 (b) planned annual expenditures including all costs of a minimum of 4 fifty million dollars commencing in calendar year two thousand eighteen 5 and sustained each year through calendar year two thousand twenty-eight; 6 (c) a diversity of project sizes, geographic distribution, and partic- 7 ipation among customer classes, subject to cost-effectiveness consider- 8 ations; 9 (d) incentive structures that maximize cost-effectiveness and practi- 10 cality through competitive procurements, standing-offers, production 11 incentives or capacity incentives at the wholesale or retail level as in 12 the judgment of the commission, in consultation with the New York inde- 13 pendent system operator, provide for the most effective program; 14 (e) incentive structures that take into consideration the economic 15 benefits to the state of New York; 16 (f) program designs that take into consideration the avoidance of 17 long-term costs to the transmission and distribution system and minimi- 18 zation of peak load in constrained areas; 19 (g) annual reports on the achievements and effectiveness of the 20 program; and 21 (h) such other issues deemed appropriate by the commission. 22 § 2. Sections 1020-ii, 1020-jj and 1020-kk of the public authorities 23 law, as renumbered by chapter 388 of the laws of 2011, are renumbered 24 sections 1020-jj, 1020-kk and 1020-ll and a new section 1020-ii is added 25 to read as follows: 26 § 1020-ii. Establishment of fuel cell incentive program. 1. As used in 27 this section the term "qualified fuel cell electric generating system" 28 means: a system based on a solid oxide, molten carbonate, proton 29 exchange membrane or phosphoric acid fuel cell that is manufactured, 30 installed and operated in accordance with applicable government and 31 industry standards, and that is installed in the authority's service 32 territory after January first, two thousand eighteen. 33 2. The authority shall continue to encourage the development of quali- 34 fied fuel cell electric generating systems in its service territory 35 through implementation of the fuel cell incentive program. The program 36 shall require: 37 (a) planned annual expenditures including all costs of at minimum 38 fifteen million dollars commencing in calendar year two thousand eigh- 39 teen and sustained each year through calendar year two thousand twenty- 40 eight; 41 (b) a diversity of project types; 42 (c) program administration and delivery; 43 (d) incentive structures that take into consideration the economic 44 benefits to the state of New York; 45 (e) program designs that take into consideration the avoidance of 46 long-term costs to the transmission and distribution system and minimi- 47 zation of peak load in constrained areas and that maximizes cost-effec- 48 tiveness through competitive procurements; 49 (f) annual reports on the achievements and effectiveness of the 50 program; and 51 (g) any other objectives the authority may establish. 52 § 3. This act shall take effect immediately.

Establishes a fuel cell incentive program

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