State Seal2 copy Bill Number: S.B. 1396

Kerr Floor Amendment

Reference to: printed bill

Amendment drafted by: Leg Council

FLOOR AMENDMENT EXPLANATION

1. Adds an emergency clause.

2. Adds, to Hydrogen Study Committee (Study Committee) membership as nonvoting members:

a. the Arizona Land Commissioner or the Commissioner's designee;

b. the Arizona Department of Environmental Quality (ADEQ) Director or the Director's designee;

c. the Arizona Department of Water Resources (ADWR) Director or the Director's designee;

d. the Arizona Department of Transportation (ADOT) Director or the Director's designee;

e. the Arizona Department of Administration (ADOA) Director or the Director's designee; and

f. the Arizona Commerce Authority (ACA) Chief Executive Officer (CEO) or the CEO's designee.

3. Removes the requirement that the Study Committee study enhanced oil recovery.

4. Requires the Study Committee to:

a. consult, in making recommendations:

i. the ACA;

ii. the Arizona Department of Forestry and Fire Management;

iii. ADEQ;

iv. ADOT;

v. ADWR;

vi. ADOA;

vii. stakeholder businesses;

viii. at least one environmental group;

ix. at least one professor specializing in the study of hydrogen;

x. at least one labor or workforce group; and

xi. at least one Arizona university;

b. study cost-effective industrial rates for hydrogen production and flexible energy generation configurations to maximize federal funding for hydrogen facilities;

c. investigate and evaluate state and federal funding sources;

d. include an economic impact analysis of the potential hydrogen value chain in Arizona in the Study Committee report; and

e. recommend legislation related to the use of hydrogen.

5. Specifies that the study committee must include:

a. the study of both state and federal laws;

b. the production of clean energy in its study of production of hydrogen as a fuel source;

c. groundwater impacts in the consideration of Arizona's natural resources when studying the production of hydrogen;

d. the long-term liability and responsibility for potential pipeline transportation infrastructure in the study of carbon capture and sequestration;

e. other carbon use applications in the study of streamlined permitting processes for hydrogen facilities and infrastructure;

f. safety standards regarding the distribution and storage, rather than transportation, of hydrogen by state agencies in its review of hydrogen safety standards; and

g. ADEQ and ADWR hydrogen safety standards in its review.

6. Specifies that the Study Committee may study the construction of a network of pipelines rather than only one hydrogen pipeline.

7. Specifies that, in addition to listed codes, regulations and standards, state agencies may consider the codes, regulations and standards of:

a. the Pipeline and Hazardous Materials Safety Administration;

b. the Council on Environmental Quality; and

c. the U.S. Department of Energy.

8. Makes technical and conforming changes.

Page 1, between lines 14 and 15, insert:

"3. The state land commissioner or the commissioner's designee.

4. The director of environmental quality or the director's designee.

5. The director of water resources or the director's designee.

6. The director of the department of transportation or the director's designee.

7. The director of the department of administration or the director's designee.

8. The chief executive officer of the Arizona commerce authority or the chief executive officer's designee.

B. Committee members who are not members of the senate or house of representatives do not have voting privileges."

Reletter to conform

Line 16, after "existing" insert "state and federal"; strike the second "and" insert a comma; after "regulations" insert "and funding sources"

Line 17, after the comma insert "use,"

Line 20, after the comma insert "including clean energy,"

Line 21, after "state" insert ", including groundwater impacts"

Line 22, after "pipeline" insert "or network of pipelines"

Line 23, strike the second comma

Line 29, after "carbon" insert "and potential pipeline transportation infrastructure"

Strike line 31

Reletter to conform

Line 33, after "infrastructure" insert ", including other carbon use applications"

Page 1, between lines 33 and 34, insert:

"(f) Cost-effective industrial rates for hydrogen production and flexible energy generation configurations to maximize federal funding for hydrogen facilities."

Line 35, strike "transportation and"; after "use" insert ", distribution and storage"

Between lines 37 and 38, insert:

"(c) The department of environmental quality.

(d) The department of water resources."

Page 2, between lines 8 and 9, insert:

"12. Pipeline and hazardous materials safety administration codes and regulations.

13. Council on environmental quality.

14. United States department of energy."

Between lines 13 and 14, insert:

"5. The Arizona commerce authority.

6. The Arizona department of forestry and fire management.

7. The department of environmental quality.

8. The department of transportation.

9. The department of water resources.

10. The department of administration.

11. Stakeholder businesses, including representation from the production, use, distribution and storage of hydrogen and technology community.

12. At least one environmental group.

13. At least one professor specializing in the study of hydrogen.

14. At least one labor or workforce group.

15. At least one university under the jurisdiction of the Arizona board of regents."

Line 17, after the period insert "The report must include an economic impact analysis of the potential hydrogen value chain in this state."

Page 2, after line 18, insert:

"Sec 2. Emergency

This act is an emergency measure that is necessary to preserve the public peace, health or safety and is operative immediately as provided by law."

Amend title to conform