SB1396 - 552R

Be it enacted by the Legislature of the State of Arizona:

Section 1. Hydrogen study committee; membership; duties; report; delayed repeal

A. The hydrogen study committee is established consisting of the following members:

1. Three members of the senate who are appointed by the president of the senate, not more than two of whom are members of the same political party. The president of the senate shall designate one of these members to serve as cochairperson of the committee.

2. Three members of the house of representatives who are appointed by the speaker of the house of representatives, not more than two of whom are members of the same political party. The speaker of the house of representatives shall designate one of these members to serve as cochairperson of the committee.

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.

C. The committee shall:

1. Investigate and evaluate existing state and federal laws, regulations and funding sources and recommend legislation related to the production, use, distribution and storage of hydrogen.

2. Study the following:

(a) The production of hydrogen from any fuel source, including clean energy, consistent with the natural resources of this state, including groundwater impacts.

(b) The construction of a dedicated hydrogen pipeline or network of pipelines to serve users of hydrogen in this state, including residential and commercial use, power generation, transportation, manufacturing and mining.

(c) The construction of facilities that result in the blending of hydrogen into existing natural gas transmission and distribution systems that serve residential, commercial and industrial customers in this state.

(d) Carbon capture and sequestration, including the long-term liability and responsibility for sequestered carbon and potential pipeline transportation infrastructure and the regulation of underground sequestered carbon.

(e) Streamlined permitting processes for hydrogen facilities and infrastructure, including other carbon use applications and any other issues that the committee deems necessary.

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

3. Review the safety standards regarding the production, use, distribution and storage of hydrogen by state agencies, including:

(a) The Arizona department of homeland security.

(b) The Arizona department of forestry and fire management.

(d) The department of water resources.

D. State agencies may take into consideration any applicable international and national codes, regulations and standards after the committee's review, including from the following:

1. American institute of aeronautics and astronautics.

2. American national standards institute.

3. American society of mechanical engineers.

4. ASTM international.

5. Compressed gas association.

6. CSA group.

7. International code council's building, fire, mechanical and fuel gas codes.

8. National fire protection association NFPA 2 hydrogen technologies code.

9. National fire protection association NFPA 1 uniform fire code.

10. SAE international.

11. Underwriters laboratories.

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

13. Council on environmental quality.

14. United States department of energy.

E. The committee shall make recommendations with consultation from:

1. The state land department.

2. The bureau of land management.

3. The corporation commission.

4. The Indian tribes in this state.

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.

F. On or before September 1, 2023, the committee shall submit a report regarding the committee's recommendations to the president of the senate and the speaker of the house of representatives and shall provide a copy of this report to the secretary of state. The report must include an economic impact analysis of the potential hydrogen value chain in this state.

G. This section is repealed from and after September 30, 2024.

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.