HF 1392

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to energy; creating renewable hydrogen initiative; modifying policies
to foster use of hydrogen energy; appropriating money; amending Minnesota
Statutes 2006, section 216B.812, subdivisions 1, 2; proposing coding for new
law in Minnesota Statutes, chapter 216B.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2006, section 216B.812, subdivision 1, is amended to
read:

Subdivision 1.

Early purchase and deployment of hydrogen, fuel cells, and
related technologies by the state.

(a) The Department of Commerce new text begin and the Pollution
Control Agency new text end in conjunction with the Department of Administration shall identify
opportunities for deleted text begin demonstrating the use of deleted text end new text begin deploying new text end hydrogen, fuel cells, and related
technologies within state-owned facilities, vehicle fleets, and operations.

(b) The Department of Commerce new text begin and the Pollution Control Agency new text end shall
recommend to the Department of Administration deleted text begin , when feasible, deleted text end the purchase and
deleted text begin demonstration deleted text end new text begin deployment new text end of hydrogen, fuel cells, and related technologies new text begin , when
feasible, new text end in ways that strategically contribute to realizing Minnesota's hydrogen economy
goal as set forth in section 216B.8109, and which contribute to the following nonexclusive
list of objectives:

(1) provide needed performance data to the marketplace;

(2) identify code and regulatory issues to be resolved;

(3) foster economic development and job creation in the state;

(4) raise public awareness of hydrogen, fuel cells, and related technologies; or

(5) reduce emissions of carbon dioxide and other pollutants.

new text begin (c) The Department of Commerce and the Pollution Control Agency shall also
recommend to the Department of Administration changes to the state's procurement
guidelines and contracts in order to facilitate the purchase and deployment of hydrogen,
fuel cells, and related technologies by all levels of government.
new text end

Sec. 2.

Minnesota Statutes 2006, section 216B.812, subdivision 2, is amended to read:

Subd. 2.

Pilot projects.

(a) In consultation with appropriate representatives from
state agencies, local governments, universities, businesses, and other interested parties,
the Department of Commerce shall report back to the legislature by November 1, 2005,
and every two years thereafter, with a slate of proposed pilot projects that contribute to
realizing Minnesota's hydrogen economy goal as set forth in section 216B.8109. The
Department of Commerce must consider the following nonexclusive list of priorities in
developing the proposed slate of pilot projects:

(1) deleted text begin demonstrate deleted text end new text begin deploy new text end "bridge" technologies such as hybrid-electric, off-road, and
fleet vehicles running on hydrogen or fuels blended with hydrogen;

(2) deleted text begin develop deleted text end new text begin lead to new text end cost-competitive, on-site hydrogen production technologies;

(3) demonstrate nonvehicle applications for hydrogen;

(4) improve the cost and efficiency of hydrogen from renewable energy sources; and

(5) improve the cost and efficiency of hydrogen production using direct solar energy
without electricity generation as an intermediate step.

(b) For all demonstrations, individual system components of the technology deleted text begin must deleted text end
new text begin should, if feasible, new text end meet commercial performance standards and systems modeling must
be completed to predict commercial performance, risk, and synergies. In addition, the
proposed pilots should meet as many of the following criteria as possible:

(1) advance energy security;

(2) capitalize on the state's native resources;

(3) result in economically competitive infrastructure being put in place;

(4) be located where it will link well with existing and related projects and be
accessible to the public, now or in the future;

(5) demonstrate multiple, integrated aspects of hydrogen infrastructure;

(6) include an explicit public education and awareness component;

(7) be scalable to respond to changing circumstances and market demands;

(8) draw on firms and expertise within the state where possible;

(9) include an assessment of its economic, environmental, and social impact; and

(10) serve other needs beyond hydrogen development.

Sec. 3.

new text begin [216B.813] MINNESOTA RENEWABLE HYDROGEN INITIATIVE.
new text end

new text begin Subdivision 1. new text end

new text begin Road map. new text end

new text begin The Department of Commerce shall coordinate and
administer directly or by contract the Minnesota renewable hydrogen initiative. If the
department decides to contract for its duties under this section, it must contract with a
nonpartisan, nonprofit organization within the state to develop the road map. The initiative
may be run as a public-private partnership representing business, academic, governmental,
and nongovernmental organizations. The initiative must oversee the development and
implementation of a hydrogen road map, including appropriate technology deployments,
that achieve the hydrogen goal of section 216B.013. The road map must be compatible
with the United States Department of Energy's National Hydrogen Energy Roadmap
and be based on an assessment of the state's opportunities in hydrogen, fuel cells, and
related technologies, so as to capitalize on strengths. The road map should establish
a vision, goals, general timeline, and measurable milestones for achieving the state's
hydrogen goal. The road map should describe how hydrogen and fuel cells fit in
Minnesota's overall energy system, and should help foster a consistent and predictable
investment environment. The department must report to the legislature on the progress in
implementing the road map by November 1 of each odd-numbered year.
new text end

new text begin Subd. 2. new text end

new text begin Grants. new text end

new text begin (a) The commissioner of commerce shall operate a competitive
grant program for projects to assist the state in attaining its hydrogen energy goals. The
commissioner of commerce shall assemble an advisory committee made up of industry,
university, government, and nongovernment organizations to:
new text end

new text begin (1) help identify the most promising technology deployment projects for public
investment;
new text end

new text begin (2) advise on the technical specifications for those projects; and
new text end

new text begin (3) make recommendations on project grants.
new text end

new text begin (b) The commissioner shall give preference to project concepts included in the
department's most recent biennial report: Strategic Demonstration Projects to Accelerate
the Commercialization of Renewable Hydrogen and Related Technologies in Minnesota.
Projects eligible for funding must combine one or more of the hydrogen production
options listed in the department's report with an end use that has significant commercial
potential, preferably high visibility, and relies on fuel cells or related technologies. Each
funded technology deployment must include an explicit education and awareness-raising
component, be compatible with the hydrogen deployment criteria defined in section
216B.812, and receive 50 percent of its total cost from nonstate sources. The 50 percent
requirement does not apply for recipients that are public institutions.
new text end

Sec. 4.

new text begin UNIFORM CODES AND STANDARDS FOR HYDROGEN, FUEL
CELLS, AND RELATED TECHNOLOGIES; RECOMMENDATIONS AND
REPORT.
new text end

new text begin (a) The commissioner of labor and industry, in consultation with the Department of
Commerce and other relevant public and private interests, shall develop recommendations
regarding the adoption of uniform codes and standards for hydrogen infrastructure, fuel
cells, and related technologies, and report those recommendations to the legislature by
December 31, 2007.
new text end

new text begin (b) The goal of the recommendations is to have all regulatory jurisdictions in the
state have the same safety standards with regard to the production, storage, transportation,
distribution, and use of hydrogen, fuel cells, and related technologies. The commissioner's
recommendations must, without limitation, include:
new text end

new text begin (1) codes and standards that already exist for hydrogen, fuel cells, and related
technologies, and how the state should formalize their use;
new text end

new text begin (2) codes and standards still under development by various official standard-making
bodies;
new text end

new text begin (3) gaps between existing codes and standards, those under development, and those
that may still be needed but are not yet being developed;
new text end

new text begin (4) the need for, and estimated cost of, additional education and training for
emergency management and code officials;
new text end

new text begin (5) any changes needed to environmental and other permitting processes to
accommodate the commercialization of hydrogen, fuel cells, and related technologies; and
new text end

new text begin (6) recommendations on appropriate codes and standards for educational and
research institutions.
new text end

Sec. 5. new text begin HYDROGEN REFUELING STATION GRANTS.
new text end

new text begin In addition to the purposes specified in Laws 2005, chapter 97, article 13, section
4, for which the commissioner of commerce may make grants, the commissioner may
make grants under that law for the purpose of developing, deploying, and encouraging
commercially promising renewable hydrogen production systems and hydrogen end
uses in partnership with industry. The authority of the commissioner to make grants
and assessments under Laws 2005, chapter 97, article 13, section 4, continues until the
authorized grants and assessments are made.
new text end

Sec. 6. new text begin APPROPRIATION FOR RENEWABLE HYDROGEN INITIATIVE.
new text end

new text begin $10,000,000 is appropriated from the general fund to the commissioner of commerce
for the purpose of preparing the hydrogen road map and making grants under Minnesota
Statutes, section 216B.813. This appropriation is available until expended.
new text end