2023-2024 Regular Sessions

                    IN SENATE

                                    January 11, 2023

        Introduced  by  Sens.  PARKER,  ADDABBO, BAILEY, BRESLIN, BROUK, CLEARE,
          twice  and  ordered  printed,  and when printed to be committed to the
          Committee on Environmental Conservation

        AN ACT to amend the  environmental  conservation  law,  in  relation  to
          establishing the "clean fuel standard of 2023"

          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 Communi-
     7  ties Protection Act will require sharp decreases  in  transportation-re-
     8  lated 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.
    14    3.  The  Climate Leadership and Communities Protection Act directs the
    15  Department of Environmental Protection to  promulgate  regulations  that
    16  will reduce greenhouse gas emissions, including from on-road vehicles.
    17    4.  New York signed a 15-state MOU to develop an action plan to reduce
    18  toxic diesel emissions from medium and heavy-duty vehicles by 2050.
    19    5.  A  clean  fuels  standard  regulation  would  promote   innovation
    20  production  and use of non-petroleum fuels that reduce vehicle and fuel-

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

        S. 1292                             2

     1  related air pollution that  endangers  public  health  and  welfare  and
     2  disproportionately impacts disadvantaged communities.
     3    § 2. Short title. This act may be known and may be cited as the "clean
     4  fuel standard of 2023".
     5    §  3.  The  environmental  conservation law is amended by adding a new
     6  section 19-0333 to read as follows:
     7  § 19-0333. Clean fuel standard.
     8    (1) A clean fuel standard is hereby established. The clean fuel stand-
     9  ard is intended to reduce carbon intensity from the on-road  transporta-
    10  tion  sector  by twenty percent by two thousand thirty-one, with further
    11  reductions to be implemented based upon advances in  technology  and  to
    12  support  achieving  the  goals  of  the  climate action plan established
    13  pursuant to section 75-0103 of this chapter as determined by the commis-
    14  sioner.  Fuels which provide net human health benefits  through  overall
    15  air  quality improvements relative to diesel and gasoline usage shall be
    16  eligible.  Aviation fuels shall be exempted from the clean fuel standard
    17  due to federal preemption, but sustainable aviation fuel shall be eligi-
    18  ble to generate credits on an opt-in basis.
    19    (2) The clean fuel standard shall apply to all providers of  transpor-
    20  tation fuels, including electricity, in New York, shall be measured on a
    21  full  fuels  lifecycle basis and may be met through market-based methods
    22  by which providers exceeding the performance required by the clean  fuel
    23  standard shall receive credits that may be applied to future obligations
    24  or  traded to providers not meeting the clean fuel standard.  The gener-
    25  ation of  credits  must  use  a  lifecycle  emissions  performance-based
    26  approach that is technology and feedstock neutral to achieve fuel decar-
    27  bonization.  In  addition  to  fuel  decarbonization,  credits generated
    28  through the use of clean fuel types will  help  promote  innovation  and
    29  investment  in  such clean fuels.  For purposes of this section the term
    30  "providers" shall include, but shall not be limited  to,  all  refiners,
    31  blenders, producers or importers of transportation fuels, or enablers of
    32  electricity  used  as  transportation fuel, "carbon intensity" means the
    33  quantity of lifecycle greenhouse gas emissions per unit of fuel  energy,
    34  and  "full  fuels lifecycle" means the aggregate of greenhouse gas emis-
    35  sions, including direct emissions and  significant  indirect  emissions,
    36  such as significant emissions from land use changes as determined by the
    37  commissioner.  The  full  fuels lifecycle shall be assessed annually and
    38  all stages of fuel  and  feedstock  production  and  distribution,  from
    39  feedstock generation or extraction through the distribution and delivery
    40  and  use  of  the finished fuel by the ultimate consumer. In calculating
    41  full fuels lifecycle greenhouse gas emissions, the mass values  for  all
    42  non-carbon-dioxide  greenhouse  gases  must  be  adjusted to account for
    43  their relative global warming potentials. This conversion shall use  the
    44  most  appropriate  conversion  relative  to global warming potentials as
    45  determined by the commissioner based on the best available science.
    46    (3) Within twenty-four months following adoption  of  the  clean  fuel
    47  standard,  the  commissioner,  in  consultation  with the New York state
    48  energy research and development authority, shall promulgate  regulations
    49  establishing a clean fuel standard with performance objectives to imple-
    50  ment subdivision one of this section. The clean fuel standard shall take
    51  into  consideration  the  low carbon fuel standard adopted in California
    52  and other states, may rely upon the carbon intensity  of  values  estab-
    53  lished for transportation fuels in such states and shall include coordi-
    54  nation  with other Northeastern states to promote regional reductions in
    55  greenhouse gas emissions.

        S. 1292                             3

     1    (4) The regulations adopted pursuant to  this  section  shall  include
     2  fees  for  the  registration of providers to offset the costs associated
     3  with implementation of the clean fuel standard.
     4    (5)  Investment  of  funds.  Electric  utilities,  state agencies, and
     5  authorities, in consultation with the climate justice working group  and
     6  the  climate  action  council established pursuant to section 75-0103 of
     7  this chapter, shall, to  the extent practicable, invest or direct avail-
     8  able and relevant programmatic resources to  provide  forty  percent  of
     9  such  electric  utility's, state agency's, or authority's overall credit
    10  value on electrified transportation programs, projects,  or  investments
    11  to directly benefit disadvantaged communities, including, but not limit-
    12  ed  to,  electrification and battery swap programs for school or transit
    13  buses; electrification of drayage trucks; investment in public  electric
    14  vehicle  charging  infrastructure  and electric vehicle charging infras-
    15  tructure in multi-family residences;  investment  in  electric  mobility
    16  solutions  such  as  electric vehicle sharing and ride hailing programs;
    17  multilingual marketing, education, and  outreach  designed  to  increase
    18  awareness  and adoption of electric vehicles; and additional rebates and
    19  incentives for low-income individuals beyond  existing  local,  federal,
    20  and state rebates and incentives.
    21    (6)  Within  twenty-four  months following the adoption of regulations
    22  implementing a clean fuel standard, the commissioner shall report to the
    23  legislature regarding the implementation of the program, the  reductions
    24  in  greenhouse  gas  emissions that have been achieved through the clean
    25  fuel standard and targets for future reductions in greenhouse gas  emis-
    26  sions from the transportation sector.
    27    (7)  Nothing in this section shall preclude the department from enact-
    28  ing or maintaining other programs to  reduce  greenhouse  gas  emissions
    29  from the transportation sector.
    30    § 4. This act shall take effect immediately.