Requires the establishment of a renewable hydrogen incentive program

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

                                          7132

                               2025-2026 Regular Sessions

                                    I N  S E N A T E

                                      April 1, 2025
                                       ___________

        Introduced  by  Sen.  PARKER -- 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, in relation to requiring the
          establishment of a renewable hydrogen 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  74-c to read as follows:
     3    § 74-C. ESTABLISHMENT OF A RENEWABLE HYDROGEN  INCENTIVE  PROGRAM.  1.
     4  THE LEGISLATURE HEREBY FINDS AND DECLARES THAT:
     5    (A)  THE  CLIMATE  LEADERSHIP  AND  COMMUNITY  PROTECTION  ACT (CLCPA)
     6  REQUIRES SIGNIFICANT REDUCTIONS IN GREENHOUSE GAS EMISSIONS, INCLUDING A
     7  FORTY PERCENT REDUCTION IN STATEWIDE GREENHOUSE  GAS  EMISSIONS  BY  TWO
     8  THOUSAND THIRTY AND AN EIGHTY-FIVE PERCENT REDUCTION IN STATEWIDE GREEN-
     9  HOUSE GAS EMISSIONS BY TWO THOUSAND FIFTY;
    10    (B)  IN  ORDER  TO  MEET  THESE AGGRESSIVE TARGETS, IT IS NECESSARY TO
    11  FURTHER DEVELOP RENEWABLE ENERGY SOURCES, INCLUDING RENEWABLE HYDROGEN;
    12    (C) RENEWABLE HYDROGEN HAS  SIGNIFICANT  POTENTIAL  TO  CONTRIBUTE  TO
    13  RESPONSIBLE  DECARBONIZATION IN THE FUTURE, AND THERE ARE EFFORTS UNDER-
    14  WAY IN NEW YORK, AT THE FEDERAL LEVEL  AND  GLOBALLY  TO  DETERMINE  THE
    15  POTENTIAL OF THIS TECHNOLOGY;
    16    (D) RENEWABLE HYDROGEN HAS THE ABILITY TO DECARBONIZE SECTORS THAT ARE
    17  DIFFICULT  TO  ELECTRIFY,  INCLUDING  THE  TRANSPORTATION AND INDUSTRIAL
    18  SECTORS, AS WELL AS THE GAS PIPELINE SYSTEM;
    19    (E) DECARBONIZATION OF THESE SECTORS WILL PROVIDE SUBSTANTIAL BENEFITS
    20  TO DISADVANTAGED COMMUNITIES;
    21    (F) SUPPORTING THE  FURTHER  DEVELOPMENT  OF  THE  RENEWABLE  HYDROGEN
    22  INDUSTRY  WILL  OFFER NEW OPPORTUNITIES FOR DEVELOPING AND EMPLOYING NEW
    23  YORK'S WORKFORCE AND WILL HELP ENSURE THAT THE AVAILABILITY OF WELL-PAID

         EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11293-01-5
        S. 7132                             2

     1  JOBS WITH GOOD BENEFITS WILL CONTINUE IN NEW YORK'S CLEAN ENERGY FUTURE;
     2  AND
     3    (G)  THEREFORE,  IT  IS  THE  INTENT OF THE LEGISLATURE TO SUPPORT THE
     4  DEVELOPMENT OF THE RENEWABLE HYDROGEN INDUSTRY IN NEW YORK IN  ORDER  TO
     5  ACHIEVE  THE  GREENHOUSE  GAS  EMISSIONS  REDUCTION  GOALS OF THE CLCPA,
     6  PROVIDE BENEFITS TO DISADVANTAGED COMMUNITIES, CREATE JOBS, AND  PROVIDE
     7  NEW CLEAN TECHNOLOGY TO DECARBONIZE CHALLENGING SECTORS.
     8    2. AS USED IN THIS SECTION:
     9    (A)  "ELIGIBLE  HYDROGEN  PROJECT" MEANS A PROJECT LOCATED IN NEW YORK
    10  RELATED TO THE PRODUCTION, PROCESSING, DELIVERY, STORAGE OR END  USE  OF
    11  RENEWABLE  HYDROGEN FOR THE PURPOSE OF REDUCING GREENHOUSE GAS EMISSIONS
    12  CONSISTENT WITH THE CLCPA;
    13    (B) "RENEWABLE HYDROGEN" MEANS HYDROGEN PRODUCED USING RENEWABLE ENER-
    14  GY SOURCES AND/OR PRODUCED WITH A CARBON INTENSITY EQUAL TO OR LESS THAN
    15  TWO KILOGRAMS OF CARBON DIOXIDE  EQUIVALENT  PRODUCED  AT  THE  SITE  OF
    16  PRODUCTION PER KILOGRAM OF HYDROGEN PRODUCED; AND
    17    (C)  "RENEWABLE ENERGY SOURCES" MEANS HYDROELECTRIC, GEOTHERMAL, SOLAR
    18  PHOTOVOLTAIC, WIND, TIDAL, WAVE, BIOMASS OR BIOGAS ENERGY SOURCES.
    19    3. NO LATER THAN DECEMBER THIRTY-FIRST, TWO THOUSAND TWENTY-FIVE,  THE
    20  COMMISSION  SHALL,  IN  CONSULTATION  WITH  THE  NEW  YORK  STATE ENERGY
    21  RESEARCH AND DEVELOPMENT AUTHORITY, ESTABLISH A PROGRAM TO  SUPPORT  THE
    22  PRODUCTION, PROCESSING, DELIVERY, STORAGE, OR END USE OF HYDROGEN IN NEW
    23  YORK  FOR  THE  PURPOSE OF MEETING THE GREENHOUSE GAS EMISSIONS GOALS OF
    24  THE CLCPA. IN ESTABLISHING THE PROGRAM, THE COMMISSION, IN  CONSULTATION
    25  WITH  THE  NEW  YORK  STATE  ENERGY  RESEARCH AND DEVELOPMENT AUTHORITY,
    26  SHALL:
    27    (A)  ESTABLISH  CRITERIA  AND  GUIDELINES  FOR  FINANCIAL   INCENTIVES
    28  PROVIDED FOR ELIGIBLE HYDROGEN PROJECTS;
    29    (B)  PROVIDE  FINANCIAL  INCENTIVES,  INCLUDING  APPROPRIATE  RATEBASE
    30  TREATMENT, FOR ELIGIBLE HYDROGEN PROJECTS  THAT  PROVIDE  REDUCTIONS  IN
    31  GREENHOUSE  GAS EMISSIONS, PRIORITIZING THOSE ELIGIBLE HYDROGEN PROJECTS
    32  THAT PROVIDE WORKFORCE BENEFITS, INCLUDING JOB  RETENTION,  CREATION  OR
    33  TRAINING, OR BENEFITS TO DISADVANTAGED COMMUNITIES AS DEFINED IN ARTICLE
    34  SEVENTY-FIVE OF THE ENVIRONMENTAL CONSERVATION LAW;
    35    (C)  AUTHORIZE  GAS  CORPORATIONS TO DEVELOP QUALITY STANDARDS FOR THE
    36  BLENDING OF RENEWABLE HYDROGEN INTO THE GAS PIPELINE SYSTEM; AND
    37    (D) IDENTIFY ANY BARRIERS TO THE WIDESPREAD DEVELOPMENT  OF  RENEWABLE
    38  HYDROGEN, INCLUDING WITHIN DISADVANTAGED COMMUNITIES AS DEFINED IN ARTI-
    39  CLE SEVENTY-FIVE OF THE ENVIRONMENTAL CONSERVATION LAW.
    40    § 2. This act shall take effect immediately.