Assigned to NREW                                                                                                                 FOR COMMITTEE

 

 

 

 


ARIZONA STATE SENATE

Fifty-Fifth Legislature, Second Regular Session

 

FACT SHEET FOR S.B. 1396

 

hydrogen study committee

Purpose

Establishes the Hydrogen Study Committee (Study Committee) and outlines Study Committee requirements.

Background

Alternative fuel is: 1) electricity; 2) solar energy; 3) liquefied petroleum gas, natural gas, hydrogen or a blend of hydrogen with liquefied petroleum or natural gas used in an engine that meets U.S. Environmental Protection Agency (U.S. EPA) standards; or 4) a combination of at least 75 percent alternative fuel and not more than 30 percent petroleum based fuel that operates in an engine that meets the U.S. EPA Low Emission Vehicle Standard and that is certified by the engine manufacturer to consume at least 70 percent alternative fuel during normal vehicle operations (A.R.S. § 1-215).

The Energy Policy Act of 2005 established the Hydrogen and Fuel Cell Technical Advisory Committee to advise the U.S. Department of Energy Secretary on: 1) the implementation of programs and activities; 2) the safety, economical and environmental consequences of technologies for the production, distribution, delivery, storage or use of hydrogen energy and fuel cells; and 3) a coordinated plan for programs directly related to fuel cells or hydrogen (P.L. 109-58, 109th Congress, 2005).

There is no anticipated fiscal impact to the state General Fund associated with this legislation.

Provisions

1.   Establishes the Study Committee, consisting of:

a)   three Senate members appointed by the Senate President, not more than two of whom are members of the same political party; and

b)   three House of Representatives (House) members appointed by the Speaker of the House, not more than two of whom are members of the same political party.

2.   Requires the Senate President and the Speaker of the House to each designate a Cochairperson from the appointed members.

3.   Requires the Study Committee to:

a)   investigate and evaluate existing laws and regulations and recommend legislation related to the production, distribution and storage of hydrogen;

b)   study:

i.   the production of hydrogen from any fuel source, consistent with Arizona's natural resources;

ii.   the construction of a dedicated hydrogen pipeline to serve users of hydrogen in Arizona, including residential and commercial use, power generation, transportation, manufacturing and mining;

iii.   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 Arizona;

iv.   carbon capture and sequestration, including the long-term liability and responsibility for sequestered carbon and the regulation of underground sequestered carbon;

v.   enhanced oil recovery; and

vi.   streamlined permitting processes for hydrogen facilities and infrastructure and any other issues that the Study Committee deems necessary;

c)   review the safety standards regarding the production, transportation and use of hydrogen by state agencies, including the Arizona Department of Homeland Security and the Department of Forestry and Fire Management;

d)   make recommendations with consultation from:

i.   the Arizona State Land Department;

ii.   the Bureau of Land Management;

iii.   the Arizona Corporation Commission; and

iv.   the Indian tribes in Arizona; and

e)   submit, by September 1, 2023, a report regarding the Study Committee's recommendations to the Senate President and the Speaker of the House and send a copy of the report to the Secretary of State.

4.    Allows state agencies to take into consideration any applicable international and national codes, regulations and standards after the Study Committee's review, including from:

a)   the American Institute of Aeronautics and Astronautics;

b)   the American National Standards Institute;

c)   the American Society of Mechanical Engineers;

d)   ASTM International;

e)   the Compressed Gas Association;

f) the CSA Group;

g)   the International Code Council's building, fire, mechanical and fuel gas codes;

h)   the National Fire Protection Association NFPA 2 Hydrogen Technologies Code;

i) the National Fire Protection Association NFPA 1 Uniform Fire Code;

j) SAE International; and

k)   Underwriters Laboratories.

5.   Terminates the Study Committee on October 1, 2024.

6.   Becomes effective on the general effective date.

Prepared by Senate Research

January 31, 2022

RC/slp