S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  7460

                            I N  S E N A T E

                              May 15, 2014
                               ___________

Introduced  by  Sen. MAZIARZ -- 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-n to read as follows:
  S 66-N. 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, THAT IS
CONNECTED  TO THE ELECTRIC SYSTEM AND OPERATED IN PARALLEL WITH AN ELEC-
TRIC CORPORATION'S TRANSMISSION AND DISTRIBUTION FACILITIES, AND THAT IS
OPERATED IN COMPLIANCE WITH ANY STANDARDS AND  REQUIREMENTS  ESTABLISHED
IN THIS CHAPTER OR BY ORDER OF THE PUBLIC SERVICE COMMISSION.
  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  FIFTEEN,  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:
  (A) ADMINISTRATION BY THE NEW YORK STATE ENERGY RESEARCH AND  DEVELOP-
MENT AUTHORITY;

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

                                                           LBD15112-02-4

S. 7460                             2

  (B)  PLANNED  ANNUAL  EXPENDITURES INCLUDING ALL COSTS OF A MINIMUM OF
FIFTY MILLION DOLLARS COMMENCING IN CALENDAR YEAR TWO  THOUSAND  FIFTEEN
AND SUSTAINED EACH YEAR THROUGH CALENDAR YEAR TWO THOUSAND TWENTY-FIVE;
  (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.
  S  2.  Sections 1020-ii, 1020-jj and 1020-kk of the public authorities
law, as renumbered by chapter 388 of the laws of  2011,  are  renumbered
sections 1020-jj, 1020-kk and 1020-ll and a new section 1020-ii is added
to read as follows:
  S 1020-II. 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,  THAT IS CONNECTED TO THE ELECTRIC SYSTEM AND OPER-
ATED  IN  PARALLEL  WITH  AN  ELECTRIC  CORPORATION'S  TRANSMISSION  AND
DISTRIBUTION  FACILITIES,  AND  THAT  IS  INSTALLED  IN  THE AUTHORITY'S
SERVICE TERRITORY AFTER JANUARY FIRST, TWO THOUSAND FIFTEEN.
  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 FIFTEEN
AND SUSTAINED EACH YEAR THROUGH CALENDAR YEAR TWO THOUSAND TWENTY-FIVE;
  (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.
  S 3. This act shall take effect immediately.