NY A09814

Establishes a fuel cell incentive program requiring the Public Service Commission to modify existing programs to encourage development of qualified fuel cell electric generating systems by January 1, 2015.

Defines qualified fuel cell systems as those using solid oxide, molten carbonate, proton exchange membrane, or phosphoric acid fuel cells that are manufactured, installed, and operated to industry standards and connected to the electric grid in parallel with utility transmission and distribution facilities.

Requires the New York State Energy Research and Development Authority (NYSERDA) to administer the program with minimum annual expenditures of $50 million from 2015 through 2025, including competitive procurements, standing-offers, and production or capacity incentives.

Program modifications must ensure diversity in project sizes, geographic distribution, and customer class participation while considering cost-effectiveness, economic benefits to New York, and reduction of transmission and distribution costs and peak load in constrained areas.

Establishes a separate fuel cell incentive program for the Authority's service territory with minimum annual expenditures of $15 million from 2015 through 2025, requiring annual reports on program achievements and effectiveness.