Bill S6129-2013

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

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

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  • Jan 8, 2014: REFERRED TO ENERGY AND TELECOMMUNICATIONS

Memo

BILL NUMBER:S6129

TITLE OF BILL: An act to amend the public authorities law, in relation to creating the New York state consortium on the development of a hydrogen economy

SUMMARY OF PROVISIONS: Section 1 states the legislative intent.

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


Text

STATE OF NEW YORK ________________________________________________________________________ 6129 IN SENATE (PREFILED) January 8, 2014 ___________
Introduced by Sen. O'BRIEN -- 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 authorities law, in relation to creating the New York state consortium on the development of a hydrogen economy THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Legislative intent. The legislature finds and declares that reducing greenhouse gas emissions (GHG) to 80% below the State's 1990 levels by 2050 is an ambitious goal for New York state to pursue. To achieve that goal it is important that the State invest in new energy systems that rely on renewable sources of electricity and to develop the necessary infrastructure to support very low or zero GHG emissions, especially related to carbon dioxide reductions. The legislature further finds that while New York is a leader in pursuing energy conservation and efficiency, further policy efforts must be aimed at replacing our reliance on the combustion of fossil fuels, especially related to transportation and electric power generation. Policies must shift to encourage the further development and commercial- ization of a broad range of activities and initiatives that will ensure development of GHG zero or low emissions for fleets and mass transporta- tion, as well as personal vehicles. The commercialization of hydrogen- based technology and fuel cells would allow New York state to lead envi- ronmentally by reducing carbon emissions and compete globally for the commercialization of these technologies. Hydrogen can be produced from a variety of domestically available primary resources such as fossil fuels (natural gas, coal, etc.), renewables (wind, photovoltaics, bio-fuels, etc.), and nuclear power. Developing hydrogen-based technologies and fuel cells will require solutions to many barriers including the devel- opment of the necessary refueling infrastructure to support further commercialization and market penetration. The legislature therefore declares that it is in the best interest of the State to build on the New York State Hydrogen Roadmap prepared in
2005 by Energetics Incorporated, Albany NanoTech, and the National Hydrogen Association in the course of performing work contracted for and sponsored by the New York state energy research and development authori- ty, the New York power authority, and the Long Island power authority and therefore, statutorily direct the New York State energy research and development authority to create and direct a New York state consortium on the development of a hydrogen economy. The primary purpose of the consortium 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 Original Equipment Manufacturers (OEM); facilitate strategies to promote, retain and expand hydrogen-based tech- nologies and fuel cell industries in New York state; to facilitate the installation of infrastructure for hydrogen production, storage, trans- portation, fueling capability and refueling stations, including the development of appropriate safety codes, standards, regulation and educational materials regarding hydrogen-based technologies and fuel cells; and 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. S 2. The public authorities law is amended by adding a new section 1884 to read as follows: S 1884. NEW YORK STATE CONSORTIUM ON THE DEVELOPMENT OF A HYDROGEN ECONOMY. 1. DEFINITIONS. AS USED IN THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS UNLESS OTHERWISE SPECIFIED: A. "AUTHORITY" SHALL MEAN THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY CREATED PURSUANT TO TITLE NINE OF ARTICLE EIGHT OF THIS CHAPTER. B. "CONSORTIUM" SHALL MEAN THE NEW YORK STATE CONSORTIUM ON THE DEVEL- OPMENT OF A HYDROGEN ECONOMY. 2. CREATION; MEMBERS. THERE IS HEREBY CREATED THE NEW YORK STATE CONSORTIUM ON THE DEVELOPMENT OF A HYDROGEN ECONOMY TO BE CONVENED BY THE AUTHORITY. THE CONSORTIUM MAY CONSIST OF REPRESENTATIVES FROM THE DEPARTMENT OF ECONOMIC DEVELOPMENT; THE DEPARTMENT OF TRANSPORTATION; THE NEW YORK STATE THRUWAY AUTHORITY; THE NEW YORK POWER AUTHORITY; AND THE LONG ISLAND POWER AUTHORITY. IT SHALL ALSO BE COMPRISED OF MEMBERS OF THE PUBLIC, INDIVIDUALS WITH KNOWLEDGE AND LEADERSHIP IN ONE OF THE FOLLOWING FIELDS: RENEWABLE ENERGY, HYDROGEN-BASED TECHNOLOGIES, FUEL CELL DEVELOPMENT, SCIENTIFIC OR TECHNOLOGICAL PRODUCT AND MARKET DEVEL- OPMENT, SAFETY PRACTICES, OR INTERNATIONAL, NATIONAL AND STATE TECHNICAL CODES AND STANDARDS DEVELOPMENT. THE CHAIRPERSON OF THE CONSORTIUM SHALL BE THE PRESIDENT OF THE AUTHORITY. 3. POWERS AND DUTIES. A. THE CONSORTIUM IS DIRECTED TO DEVELOP A REPORT WHICH SHALL INCLUDE AN IMPLEMENTATION STRATEGY AND SPECIFIC RECOMMENDATIONS TO PRESENT TO THE GOVERNOR AND THE LEGISLATURE THAT ADVANCES HYDROGEN-BASED TECHNOLOGY, INFRASTRUCTURE DEPLOYMENT, AND FUEL CELL DEVELOPMENT AND PRODUCTION IN NEW YORK STATE. B. THE MEMBERS OF THE CONSORTIUM SHALL RECEIVE NO COMPENSATION FOR THEIR SERVICES. NOTWITHSTANDING ANY INCONSISTENT PROVISION OF ANY GENER- AL, SPECIAL OR LOCAL LAW, ORDINANCE, RESOLUTION OR CHARTER, NO OFFICER, MEMBER OR EMPLOYEE OF THE STATE OR OF ANY PUBLIC CORPORATION SHALL FORFEIT HIS OR HER OFFICE OR EMPLOYMENT BY REASON OF HIS OR HER ACCEPT- ANCE OF APPOINTMENT AS A MEMBER OF THE CONSORTIUM, NOR SHALL SERVICE ON SUCH CONSORTIUM BE DEEMED INCOMPATIBLE OR IN CONFLICT WITH SUCH OFFICE OR EMPLOYMENT.
4. REPORT; RECOMMENDATIONS. THE CONSORTIUM IS DIRECTED TO DEVELOP A REPORT WHICH SHALL INCLUDE AN IMPLEMENTATION STRATEGY AND SPECIFIC RECOMMENDATIONS TO PRESENT TO THE GOVERNOR AND THE LEGISLATURE THAT ADVANCES HYDROGEN-BASED TECHNOLOGY AND FUEL CELL DEVELOPMENT AND PRODUCTION IN NEW YORK STATE. THE REPORT SHALL INCLUDE, BUT NOT BE LIMITED TO, STRATEGY AND RECOMMENDATIONS TO: A. IDENTIFY THE TECHNICAL AND NON-TECHNICAL BARRIERS TO THE BROAD SCALE COMMERCIALIZATION OF HYDROGEN-BASED TECHNOLOGIES AND FUEL CELLS; B. PROMOTE LONG-TERM PARTNERSHIPS WITH AUTOMOTIVE ORIGINAL EQUIPMENT MANUFACTURERS AS WELL AS WITH FEDERAL AND STATE RESEARCH ENTITIES, SMALL BUSINESS, AND INDUSTRY THAT ACTIVELY SUPPORTS THOSE INDUSTRIES ASSOCI- ATED WITH THE AUTOMOTIVE INDUSTRY AND THEIR SUPPLIERS BY: ENSURING THAT COMMERCIALLY AVAILABLE HYDROGEN AND FUEL CELL VEHICLES ARE OFFERED ON THE RETAIL MARKET AT A COMPETITIVE PRICE TO BATTERY, ELECTRIC OR OTHER LOW OR ZERO EMISSION VEHICLES; PROVIDING CONVENIENT ACCESS TO HYDROGEN FUELING STATIONS FOR AT LEAST SIXTY PERCENT OF NEW YORKERS; AND, PROVID- ING A COMMITMENT TO THE DEVELOPMENT OF RENEWABLE SOURCES OF ENERGY FOR HYDROGEN PRODUCTION; C. 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 DESIGNED FOR PRODUCTS SUCH AS FORKLIFTS AND OTHER MACHINERY, BACK-UP POWER FOR TELECOMMUNICATIONS AND EMERGENCY RESPONSE, AND MILI- TARY OPERATIONS; D. FACILITATE A MANUFACTURING RESEARCH AND DEVELOPMENT EFFORT THAT DEMONSTRATES PROCESSES AND TECHNOLOGIES THAT WILL REDUCE THE COSTS ASSO- CIATED WITH HYDROGEN PRODUCTION, DELIVERY, STORAGE AND FUEL CELL DEVEL- OPMENT AND PRODUCTION THAT WILL FURTHER PROMOTE MARKET DEVELOPMENT AND PENETRATION WHILE ENSURING QUALITY AND RELIABILITY; E. FACILITATE THE INSTALLATION OF INFRASTRUCTURE FOR HYDROGEN PRODUCTION, STORAGE, TRANSPORTATION, FUELING CAPABILITY, AND REFUELING STATIONS INCLUDING THE DEVELOPMENT OF APPROPRIATE SAFETY, CODES, STAND- ARDS, REGULATION AND EDUCATIONAL MATERIALS REGARDING HYDROGEN-BASED TECHNOLOGIES AND FUEL CELLS; F. 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; G. CONSULT WITH THE DEPARTMENT OF TRANSPORTATION AND THE NEW YORK STATE THRUWAY AUTHORITY, TO IDENTIFY AREAS WITHIN THE STATE TRANSPORTA- TION SYSTEM THAT WOULD BENEFIT FROM THE INTEGRATION OF POTENTIAL MASS TRANSIT AND FLEET TRANSIT LOCATIONS WITH HYDROGEN-BASED TECHNOLOGY AND FUEL CELL REFUELING STATIONS, INCLUDING CONSIDERATIONS FOR THE TECHNO- LOGICAL, FACILITY AND FINANCIAL ARRANGEMENTS NEEDED FOR THE PURCHASE OR CONVERSION OF STATE FLEETS AS WELL AS IDENTIFYING SPECIFIC LOCATIONS FOR HYDROGEN REFUELING STATIONS ALONG THE NEW YORK STATE THRUWAY, AS WELL AS OTHER STATE ROADS AND HIGHWAYS, AT LOCATIONS THAT COULD POTENTIALLY BE UTILIZED BY STATE FLEETS OR OTHER PUBLIC OR PRIVATE SECTOR FLEETS, SUCH AS MASS TRANSIT BUS AND SCHOOL BUS FLEETS; H. CONSULT WITH THE PUBLIC SERVICE COMMISSION, THE NEW YORK INDEPEND- ENT SYSTEM OPERATOR, AND ELECTRIC AND NATURAL GAS SERVICE PROVIDERS TO IDENTIFY AREAS IN THE ELECTRIC AND NATURAL GAS DISTRIBUTION SYSTEM OF THE STATE THAT WOULD BE EFFECTED BY THE DEVELOPMENT OF HYDROGEN-BASED TECHNOLOGY OR FUEL CELL TECHNOLOGY; I. IDENTIFY POTENTIAL SOURCES OF FEDERAL FUNDS AND COORDINATE STATE, UNIVERSITY, PUBLIC AND PRIVATE SECTOR EFFORTS TO SECURE SUCH FUNDS; AND
J. IDENTIFY POTENTIAL AMENDMENTS TO STATE LAWS, REGULATIONS, OR POLI- CIES INCLUDING THE USE OF REGIONAL GREENHOUSE GAS INITIATIVE (RGGI), CONSENT ORDERS ISSUED BY THE PUBLIC SERVICE COMMISSION RELATED TO THE RENEWABLE PORTFOLIO STANDARD, THE SYSTEMS BENEFITS CHARGES, AND ENERGY EFFICIENCY PORTFOLIO STANDARDS, AND OTHER STATE POLICIES TO PROMOTE HYDROGEN-BASED TECHNOLOGY AND FUEL CELLS. 5. ANNUAL REPORTING. THE CONSORTIUM SHALL SUBMIT THEIR REPORT TO THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY, THE MINORITY LEADER OF THE SENATE AND THE MINORITY LEADER OF THE ASSEMBLY ON OR BEFORE SEPTEMBER FIRST, TWO THOUSAND FOURTEEN, AND ANNUALLY THEREAFTER. 6. ASSISTANCE. TO EFFECTUATE THE PURPOSES OF THIS SECTION, THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORITY IS DIRECTED TO ASSIST THE CONSORTIUM IN THE DEVELOPMENT OF THE IMPLEMENTATION PLAN AND SPECIFIC RECOMMENDATIONS THAT ADVANCE HYDROGEN-BASED TECHNOLOGY, FUEL CELL DEVELOPMENT AND PRODUCTION AND THE NECESSARY INFRASTRUCTURE IN NEW YORK STATE IN ACCORDANCE WITH THIS SECTION. THE CONSORTIUM MAY REQUEST FROM ANY DEPARTMENT, DIVISION, BOARD, BUREAU, COMMISSION OR AGENCY OF THE STATE TO PROVIDE TO THE CONSORTIUM SUCH FACILITIES, ASSISTANCE AND DATA AS WILL ENABLE THE CONSORTIUM TO PROPERLY CARRY OUT ITS POWERS AND DUTIES. S 3. Section 1854 of the public authorities law is amended by adding a new subdivision 22 to read as follows: 22. TO PROVIDE ASSISTANCE TO THE NEW YORK STATE CONSORTIUM ON THE DEVELOPMENT OF A HYDROGEN ECONOMY AS ESTABLISHED IN SECTION EIGHTEEN HUNDRED EIGHTY-FOUR OF THIS ARTICLE IN THE DEVELOPMENT OF THE REPORT WHICH SHALL INCLUDE AN IMPLEMENTATION STRATEGY AND SPECIFIC RECOMMENDA- TIONS TO ADVANCE HYDROGEN-BASED TECHNOLOGY, FUEL CELLS AND THE NECESSARY INFRASTRUCTURE IN NEW YORK STATE. THE AUTHORITY IS AUTHORIZED AND DIRECTED TO USE ANY MONIES CURRENTLY AVAILABLE TO EFFECTUATE SUCH REPORT. S 4. This act shall take effect immediately.

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