S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         3993
                              2015-2016 Regular Sessions
                                   I N  S E N A T E
                                   February 25, 2015
                                      ___________
       Introduced by Sens. FUNKE, GRIFFO -- read twice and ordered printed, and
         when printed to be committed to the Committee on Energy and Telecommu-
         nications
       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    S 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 SIXTEEN, 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.
                                                                  LBD04872-04-5
       S. 3993                             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  SIXTEEN
    5  AND SUSTAINED EACH YEAR THROUGH CALENDAR YEAR TWO THOUSAND TWENTY-SIX;
    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    S  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    S 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 SIXTEEN.
   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 SIXTEEN
   39  AND SUSTAINED EACH YEAR THROUGH CALENDAR YEAR TWO THOUSAND TWENTY-SIX;
   40    (B) A DIVERSITY OF PROJECT TYPES;
   41    (C) PROGRAM ADMINISTRATION AND DELIVERY;
   42    (D)  INCENTIVE  STRUCTURES  THAT  TAKE INTO CONSIDERATION THE ECONOMIC
   43  BENEFITS TO THE STATE OF NEW YORK;
   44    (E) PROGRAM DESIGNS THAT TAKE  INTO  CONSIDERATION  THE  AVOIDANCE  OF
   45  LONG-TERM  COSTS TO THE TRANSMISSION AND DISTRIBUTION SYSTEM AND MINIMI-
   46  ZATION OF PEAK LOAD IN CONSTRAINED AREAS AND THAT MAXIMIZES  COST-EFFEC-
   47  TIVENESS THROUGH COMPETITIVE PROCUREMENTS;
   48    (F)  ANNUAL  REPORTS  ON  THE  ACHIEVEMENTS  AND  EFFECTIVENESS OF THE
   49  PROGRAM; AND
   50    (G) ANY OTHER OBJECTIVES THE AUTHORITY MAY ESTABLISH.
   51    S 3. This act shall take effect immediately.