Bill Text: NY S01292 | 2023-2024 | General Assembly | Amended


Bill Title: Establishes the clean fuel standard of 2024; provides such standard is intended to reduce greenhouse gas intensity from the on-road transportation sector, with further reductions to be implemented based upon advances in technology.

Spectrum: Moderate Partisan Bill (Democrat 32-8)

Status: (Engrossed) 2024-06-07 - referred to environmental conservation [S01292 Detail]

Download: New_York-2023-S01292-Amended.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                         1292--A

                               2023-2024 Regular Sessions

                    IN SENATE

                                    January 11, 2023
                                       ___________

        Introduced  by  Sens.  PARKER,  ADDABBO,  BAILEY,  BRESLIN,  BROUK, CHU,
          CLEARE, COMRIE,  COONEY,  FERNANDEZ,  GIANARIS,  GOUNARDES,  HARCKHAM,
          HINCHEY,  HOYLMAN-SIGAL,  JACKSON,  KAVANAGH,  KRUEGER,  LIU, MANNION,
          MATTERA, MAY, MAYER, MURRAY, MYRIE, PALUMBO, PERSAUD, RHOADS, ROLISON,
          RYAN, SALAZAR, SANDERS, SEPULVEDA, SERRANO, SKOUFIS, STAVISKY,  TEDIS-
          CO,  THOMAS,  WEIK -- read twice and ordered printed, and when printed
          to be committed to the  Committee  on  Environmental  Conservation  --
          recommitted  to the Committee on Environmental Conservation in accord-
          ance with Senate Rule 6,  sec.  8  --  reported  favorably  from  said
          committee  and  committed  to  the  Committee  on Finance -- committee
          discharged, bill amended, ordered reprinted as amended and recommitted
          to said committee

        AN ACT to amend the  environmental  conservation  law,  in  relation  to
          establishing the "clean fuel standard of 2024"

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Legislative findings and declarations:
     2    1. The transportation sector in New York is a leading source of crite-
     3  ria pollutants and the leading source of greenhouse gas  emissions  that
     4  endanger  public  health  and  welfare  by  causing  and contributing to
     5  increased air  pollution  and  dangerous  climate  change.  Meeting  the
     6  pollution reduction requirements of the Climate Leadership and Community
     7  Protection  Act  will  require sharp decreases in transportation-related
     8  emissions.
     9    2. Shifting  from  today's  petroleum-based  transportation  fuels  to
    10  alternative  fuels has the potential to significantly reduce transporta-
    11  tion emissions of air pollutants and greenhouse gases and is recommended
    12  by the Intergovernmental Panel on Climate Change as an important pathway
    13  for holding global warming to 1.5 degrees Celsius.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01696-05-4

        S. 1292--A                          2

     1    3. The Climate Leadership and Community  Protection  Act  directs  the
     2  Department  of  Environmental  Protection to promulgate regulations that
     3  will reduce greenhouse gas emissions, including from on-road vehicles.
     4    4.  New York signed a 15-state MOU to develop an action plan to reduce
     5  toxic diesel emissions from medium and heavy-duty vehicles by 2050.
     6    5.  A  clean  fuels  standard  regulation  would  promote   innovation
     7  production  and use of non-petroleum fuels that reduce vehicle and fuel-
     8  related air pollution that  endangers  public  health  and  welfare  and
     9  disproportionately impacts disadvantaged communities.
    10    § 2. Short title. This act may be known and may be cited as the "clean
    11  fuel standard of 2024".
    12    §  3.  The  environmental  conservation law is amended by adding a new
    13  section 19-0333 to read as follows:
    14  § 19-0333. Clean fuel standard.
    15    1. A clean fuel standard is hereby established. The clean fuel  stand-
    16  ard  is  intended  to  reduce  greenhouse gas intensity from the on-road
    17  transportation sector by twenty percent by two thousand thirty-two.   In
    18  advance of two  thousand thirty-two and every five years thereafter, the
    19  department  shall  promulgate  regulations determining the minimum addi-
    20  tional greenhouse gas  intensity  reduction  to  be  achieved  over  the
    21  following  five  years,  with further reductions to be implemented based
    22  upon advances in technology and to support achieving the requirements of
    23  the New York state climate leadership and community protection  act  and
    24  the goals of the scoping plan established pursuant to section 75-0103 of
    25  this  chapter,  as  determined by the commissioner.  Fuels which provide
    26  net human health benefits through overall air quality improvements rela-
    27  tive to diesel and gasoline usage shall be  eligible.    Aviation  fuels
    28  shall   be  exempted  from  the  clean  fuel  standard  due  to  federal
    29  preemption, but sustainable aviation fuel shall be eligible to  generate
    30  credits on an opt-in basis to  help  encourage  development  of a viable
    31  sustainable aviation fuel market.
    32    2. The clean fuel standard shall apply to all providers of transporta-
    33  tion  fuels,  including electricity, in New York, shall be measured on a
    34  full fuels lifecycle basis and may be met through  market-based  methods
    35  by  which providers exceeding the performance required by the clean fuel
    36  standard shall receive credits that may be applied to future obligations
    37  or traded to providers not meeting the clean fuel standard.  The  gener-
    38  ation  of  credits  must  use  a  lifecycle  emissions performance-based
    39  approach that is technology and feedstock neutral to achieve  greenhouse
    40  gas  reductions.  In addition, the department shall consider other envi-
    41  ronmental impacts of fuels in determining  credits,  including  but  not
    42  limited  to  crop displacement impacts and forms of pollution other than
    43  greenhouse gas emissions, whether or not  occurring  within  the  United
    44  States.
    45    3.  For  purposes  of this section the term "providers" shall include,
    46  but shall not be  limited  to,  all  refiners,  blenders,  producers  or
    47  importers  of  transportation  fuels, or enablers of electricity used as
    48  transportation fuel, "greenhouse gas intensity" means  the  quantity  of
    49  lifecycle  greenhouse  gas  emissions per unit of fuel energy, and "full
    50  fuels lifecycle" means the aggregate greenhouse gas emissions, including
    51  direct emissions and indirect emissions, such as emissions  from  direct
    52  or indirect land use changes, whether or not such emissions occur within
    53  the  United States, measured in carbon dioxide equivalents, as such term
    54  is defined in subdivision two of section 75-0101 of this  chapter,  with
    55  aggregate  per unit fuel energy emissions determined by the commissioner

        S. 1292--A                          3

     1  after consideration of all relevant factors, including  as  contemplated
     2  by subdivision four of this section.
     3    4.  The  full  fuels  lifecycle  shall  be  assessed annually and such
     4  assessment shall include all stages of fuel and feedstock production and
     5  distribution, including but  not  limited  to  feedstock  generation  or
     6  extraction  through  the distribution, delivery, and use of the finished
     7  fuel by the ultimate consumer.
     8    5. a.  Within twenty-four months following the effective date of  this
     9  section, the commissioner, in consultation with the New York state ener-
    10  gy  research  and  development  authority,  shall promulgate regulations
    11  establishing a clean fuel standard with performance objectives to imple-
    12  ment subdivision one of this section.   Such regulations  shall  include
    13  establishment of measures to limit costs and maximize savings.
    14    b.  The  clean  fuel  standard  shall  take into consideration the low
    15  carbon fuel standard adopted in other states, and the recommendations of
    16  the scoping plan, and shall include coordination with other Northeastern
    17  states to promote regional reductions in greenhouse gas emissions.
    18    c. In addition, such regulations shall:
    19    (i) require providers to disclose all information material  to  deter-
    20  mine  the  full  fuels lifecycle and impose rigorous standards regarding
    21  transparency with respect to information  relevant  to  determining  the
    22  full fuels lifecycle;
    23    (ii) require such disclosure and transparency in order to obtain cred-
    24  its; and
    25    (iii)  impose  significant penalties for failure to disclose or report
    26  information required by such regulations or as  otherwise  requested  by
    27  the department.
    28    d. Such regulations shall include fees for the registration of provid-
    29  ers to offset the costs associated with implementation of the clean fuel
    30  standard.
    31    e. Such regulations shall allow for a deferral of the program based on
    32  emergency or forecasted conditions.
    33    6.  Electric  utilities, state agencies, and authorities, in consulta-
    34  tion with the climate justice working group and the climate action coun-
    35  cil established pursuant to section 75-0103 of this chapter,  shall,  to
    36  the extent practicable, invest or direct available and relevant program-
    37  matic  resources  to  provide  forty percent of such electric utility's,
    38  state agency's, or  authority's  overall  credit  value  on  electrified
    39  transportation  programs,  projects,  or investments to directly benefit
    40  disadvantaged communities, including, but not limited  to,  electrifica-
    41  tion and battery swap programs for school or transit buses; electrifica-
    42  tion  of  drayage trucks; investment in public electric vehicle charging
    43  infrastructure and electric vehicle charging infrastructure in multi-fa-
    44  mily residences; investment in electric mobility solutions such as elec-
    45  tric vehicle sharing and ride hailing programs; multilingual  marketing,
    46  education,  and  outreach designed to increase awareness and adoption of
    47  electric vehicles; and additional rebates and incentives for  low-income
    48  individuals beyond existing local, federal, and state rebates and incen-
    49  tives.
    50    7.  Within  twenty-four  months  following the adoption of regulations
    51  implementing a clean fuel standard, the commissioner shall report to the
    52  legislature regarding the implementation of the program, the  reductions
    53  in  greenhouse  gas  emissions that have been achieved through the clean
    54  fuel standard and targets for future reductions in greenhouse gas  emis-
    55  sions from the transportation sector.

        S. 1292--A                          4

     1    8. Nothing in this section shall preclude the department from enacting
     2  or  maintaining  other  programs to reduce greenhouse gas emissions from
     3  the transportation sector.
     4    § 4. This act shall take effect immediately.
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