S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    862
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (PREFILED)
 
                              January 6, 2021
                                ___________
 
 Introduced  by  M.  of  A.  WOERNER,  THIELE, SAYEGH, WILLIAMS, GRIFFIN,
   EPSTEIN,  ABINANTI,  MAGNARELLI,  COLTON,  STIRPE,  BARRON,   WALLACE,
   CARROLL,  GOTTFRIED,  STECK,  PERRY, STERN, REYES, FAHY, D. ROSENTHAL,
   PAULIN,  PICHARDO,  JONES,  LUPARDO,  QUART,  DE LA ROSA,   O'DONNELL,
   J. RIVERA,  DICKENS,  GLICK,  SIMON,  ZEBROWSKI, HEVESI, L. ROSENTHAL,
   RODRIGUEZ, WEPRIN, ROZIC, SANTABARBARA, WALKER, FRONTUS, COOK,  SOLAG-
   ES,   CUSICK,   OTIS,   VANEL,  DINOWITZ,  HUNTER,  BARRETT,  GUNTHER,
   SEAWRIGHT, GALEF, NIOU, FERNANDEZ, JACOBSON, HYNDMAN, NOLAN,  BENEDET-
   TO,  AUBRY, LAVINE, McMAHON -- Multi-Sponsored by -- M. of A. CYMBROW-
   ITZ -- read once  and  referred  to  the  Committee  on  Environmental
   Conservation
 
 AN  ACT  to  amend  the  environmental  conservation law, in relation to
   establishing the "low carbon fuel standard of 2021"
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Short title. This act may be known and may be cited as the
 "low carbon fuel standard of 2021".
   § 2. The environmental conservation law is amended  by  adding  a  new
 section 19-0329 to read as follows:
 § 19-0329. LOW CARBON FUEL STANDARD.
   (1)  A  LOW CARBON FUEL STANDARD IS HEREBY ESTABLISHED. THE LOW CARBON
 FUEL STANDARD IS INTENDED TO REDUCE CARBON INTENSITY  FROM  THE  ON-ROAD
 TRANSPORTATION SECTOR BY TWENTY PERCENT BY TWO THOUSAND THIRTY-TWO, WITH
 FURTHER  REDUCTIONS  TO BE IMPLEMENTED BASED UPON ADVANCES IN TECHNOLOGY
 AS DETERMINED BY THE COMMISSIONER.
   (2) THE LOW CARBON FUEL STANDARD  SHALL  APPLY  TO  ALL  PROVIDERS  OF
 TRANSPORTATION  FUELS  IN  NEW  YORK,  SHALL BE MEASURED ON A FULL FUELS
 LIFECYCLE BASIS AND MAY BE MET THROUGH  MARKET-BASED  METHODS  BY  WHICH
 PROVIDERS EXCEEDING THE PERFORMANCE REQUIRED BY A LOW CARBON FUEL STAND-
 ARD  SHALL  RECEIVE CREDITS THAT MAY BE APPLIED TO FUTURE OBLIGATIONS OR
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD01173-01-1

 A. 862                              2
 
 TRADED TO PROVIDERS NOT  MEETING  THE  LOW  CARBON  FUEL  STANDARD.  FOR
 PURPOSES  OF  THIS SECTION THE TERM "PROVIDERS" SHALL INCLUDE, BUT SHALL
 NOT BE LIMITED TO, ALL REFINERS, BLENDERS,  PRODUCERS  OR  IMPORTERS  OF
 TRANSPORTATION FUELS, "CARBON INTENSITY" MEANS THE QUANTITY OF LIFECYCLE
 GREENHOUSE  GAS EMISSIONS PER UNIT OF FUEL ENERGY, AND "FULL FUELS LIFE-
 CYCLE" MEANS THE AGGREGATE OF GREENHOUSE GAS EMISSIONS, INCLUDING DIRECT
 EMISSIONS AND SIGNIFICANT INDIRECT EMISSIONS, SUCH AS SIGNIFICANT  EMIS-
 SIONS  FROM LAND USE CHANGES AS DETERMINED BY THE COMMISSIONER. THE FULL
 FUELS LIFECYCLE INCLUDES ALL STAGES OF FUEL AND FEEDSTOCK PRODUCTION AND
 DISTRIBUTION,  FROM  FEEDSTOCK  GENERATION  OR  EXTRACTION  THROUGH  THE
 DISTRIBUTION  AND  DELIVERY AND USE OF THE FINISHED FUEL BY THE ULTIMATE
 CONSUMER. IN CALCULATING FULL FUELS LIFECYCLE GREENHOUSE GAS  EMISSIONS,
 THE  MASS  VALUES  FOR  ALL  NON-CARBON-DIOXIDE GREENHOUSE GASES MUST BE
 ADJUSTED TO ACCOUNT FOR THEIR RELATIVE GLOBAL WARMING  POTENTIALS.  THIS
 CONVERSION  SHALL USE THE MOST APPROPRIATE CONVERSION RELATIVE TO GLOBAL
 WARMING POTENTIALS AS DETERMINED BY THE COMMISSIONER.
   (3) WITHIN TWENTY-FOUR MONTHS FOLLOWING ADOPTION  OF  THE  LOW  CARBON
 FUEL STANDARD, THE COMMISSIONER, IN CONSULTATION WITH THE NEW YORK STATE
 ENERGY  RESEARCH AND DEVELOPMENT AUTHORITY, SHALL PROMULGATE REGULATIONS
 ESTABLISHING A LOW CARBON FUEL STANDARD WITH PERFORMANCE  OBJECTIVES  TO
 IMPLEMENT  SUBDIVISION  ONE  OF  THIS  SECTION.  SUCH REGULATIONS MAY BE
 PHASED INTO EFFECT GIVING  PRIORITY  TO  THE  HEAVY-DUTY  TRANSPORTATION
 SECTOR  CONSISTING  OF VEHICLES WITH THE CLASSIFICATION OF SIX OR HIGHER
 AS CLASSIFIED BY THE FEDERAL HIGHWAY ADMINISTRATION. THE LOW CARBON FUEL
 STANDARD SHALL TAKE INTO CONSIDERATION  THE  LOW  CARBON  FUEL  STANDARD
 ADOPTED  IN CALIFORNIA AND OTHER STATES, MAY RELY UPON THE CARBON INTEN-
 SITY OF VALUES ESTABLISHED FOR TRANSPORTATION FUELS IN SUCH  STATES  AND
 SHALL  INCLUDE  COORDINATION  WITH  OTHER NORTHEASTERN STATES TO PROMOTE
 REGIONAL REDUCTIONS IN GREENHOUSE GAS EMISSIONS.
   (4) THE REGULATIONS ADOPTED PURSUANT TO  THIS  SECTION  SHALL  INCLUDE
 FEES  FOR  THE  REGISTRATION OF PROVIDERS TO OFFSET THE COSTS ASSOCIATED
 WITH IMPLEMENTATION OF THE LOW CARBON FUEL STANDARD.
   (5) WITHIN TWENTY-FOUR MONTHS FOLLOWING THE  ADOPTION  OF  REGULATIONS
 IMPLEMENTING  A  LOW CARBON FUEL STANDARD, THE COMMISSIONER SHALL REPORT
 TO THE LEGISLATURE REGARDING THE  IMPLEMENTATION  OF  THE  PROGRAM,  THE
 REDUCTIONS  IN  GREENHOUSE GAS EMISSIONS THAT HAVE BEEN ACHIEVED THROUGH
 THE LOW CARBON FUEL STANDARD AND TARGETS FOR FUTURE REDUCTIONS IN GREEN-
 HOUSE GAS EMISSIONS FROM THE TRANSPORTATION SECTOR.
   (6) NOTHING IN THIS SECTION SHALL PRECLUDE THE DEPARTMENT FROM  ENACT-
 ING  OR  MAINTAINING  OTHER  PROGRAMS TO REDUCE GREENHOUSE GAS EMISSIONS
 FROM THE TRANSPORTATION SECTOR.
   § 3. This act shall take effect immediately.

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  862--A
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                (PREFILED)
 
                              January 6, 2021
                                ___________
 
 Introduced  by  M.  of  A.  WOERNER,  THIELE, SAYEGH, WILLIAMS, GRIFFIN,
   EPSTEIN,  ABINANTI,  MAGNARELLI,  COLTON,  STIRPE,  BARRON,   WALLACE,
   CARROLL,  GOTTFRIED,  STECK,  PERRY, STERN, REYES, FAHY, D. ROSENTHAL,
   PAULIN,  PICHARDO,  JONES,  LUPARDO,  QUART,  DE LA ROSA,   O'DONNELL,
   J. RIVERA,  DICKENS,  GLICK,  SIMON,  ZEBROWSKI, HEVESI, L. ROSENTHAL,
   RODRIGUEZ, WEPRIN, ROZIC, SANTABARBARA, WALKER, FRONTUS, COOK,  SOLAG-
   ES,   CUSICK,   OTIS,   VANEL,  DINOWITZ,  HUNTER,  BARRETT,  GUNTHER,
   SEAWRIGHT, GALEF, NIOU, FERNANDEZ, JACOBSON, HYNDMAN, NOLAN,  BENEDET-
   TO,  AUBRY,  LAVINE,  McMAHON, CYMBROWITZ, BURKE, JACKSON -- read once
   and referred to the Committee on Environmental Conservation -- commit-
   tee discharged, bill amended, ordered reprinted as amended and  recom-
   mitted to said committee
 
 AN  ACT  to  amend  the  environmental  conservation law, in relation to
   establishing the "clean fuel standard of 2021"
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1.  Legislative findings and declarations:
   1. The transportation sector in New York is a leading source of crite-
 ria  pollutants  and the leading source of greenhouse gas emissions that
 endanger public health  and  welfare  by  causing  and  contributing  to
 increased  air  pollution  and  dangerous  climate  change.  Meeting the
 pollution reduction requirements of the Climate Leadership and  Communi-
 ties  Protection  Act will require sharp decreases in transportation-re-
 lated emissions.
   2. Shifting  from  today's  petroleum-based  transportation  fuels  to
 alternative  fuels has the potential to significantly reduce transporta-
 tion emissions of air pollutants and greenhouse gases and is recommended
 by the Intergovernmental Panel on Climate Change as an important pathway
 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.
              

                                                            LBD01173-02-1

 A. 862--A                           2
 
   3. The Climate Leadership and Communities Protection Act  directs  the
 Department  of  Environmental  Protection to promulgate regulations that
 will reduce greenhouse gas emissions, including from on-road vehicles.
   4.  New York signed a 15-state MOU to develop an action plan to reduce
 toxic diesel emissions from medium and heavy-duty vehicles by 2050.
   5.  A  clean  fuels  standard  regulation  would  promote   innovation
 production  and use of non-petroleum fuels that reduce vehicle and fuel-
 related air pollution that  endangers  public  health  and  welfare  and
 disproportionately impacts disadvantaged communities.
   § 2. Short title. This act may be known and may be cited as the "clean
 fuel standard of 2021".
   §  3.  The  environmental  conservation law is amended by adding a new
 section 19-0329 to read as follows:
 § 19-0329. CLEAN FUEL STANDARD.
   (1) A CLEAN FUEL STANDARD IS HEREBY ESTABLISHED. THE CLEAN FUEL STAND-
 ARD IS INTENDED TO REDUCE CARBON INTENSITY FROM THE ON-ROAD  TRANSPORTA-
 TION  SECTOR  BY  TWENTY  PERCENT  BY  TWO THOUSAND THIRTY, WITH FURTHER
 REDUCTIONS TO BE IMPLEMENTED BASED UPON ADVANCES IN TECHNOLOGY AS DETER-
 MINED BY THE COMMISSIONER.  AVIATION FUELS SHALL BE  EXEMPTED  FROM  THE
 CLEAN  FUEL STANDARD DUE TO FEDERAL PREEMPTION, BUT SUSTAINABLE AVIATION
 FUEL SHALL BE ELIGIBLE TO GENERATE CREDITS ON AN OPT-IN BASIS.
   (2) THE CLEAN FUEL STANDARD SHALL APPLY TO ALL PROVIDERS OF  TRANSPOR-
 TATION FUELS, INCLUDING ELECTRICITY, IN NEW YORK, SHALL BE MEASURED ON A
 FULL  FUELS  LIFECYCLE BASIS AND MAY BE MET THROUGH MARKET-BASED METHODS
 BY WHICH PROVIDERS EXCEEDING THE PERFORMANCE REQUIRED BY THE CLEAN  FUEL
 STANDARD SHALL RECEIVE CREDITS THAT MAY BE APPLIED TO FUTURE OBLIGATIONS
 OR  TRADED TO PROVIDERS NOT MEETING THE CLEAN FUEL STANDARD.  THE GENER-
 ATION OF  CREDITS  MUST  USE  A  LIFECYCLE  EMISSIONS  PERFORMANCE-BASED
 APPROACH THAT IS TECHNOLOGY AND FEEDSTOCK NEUTRAL TO ACHIEVE FUEL DECAR-
 BONIZATION.  IN  ADDITION  TO  FUEL  DECARBONIZATION,  CREDITS GENERATED
 THROUGH THE USE OF CLEAN FUEL TYPES WILL  HELP  PROMOTE  INNOVATION  AND
 INVESTMENT  IN  SUCH CLEAN FUELS.  FOR PURPOSES OF THIS SECTION THE TERM
 "PROVIDERS" SHALL INCLUDE, BUT SHALL NOT BE LIMITED  TO,  ALL  REFINERS,
 BLENDERS, PRODUCERS OR IMPORTERS OF TRANSPORTATION FUELS, OR ENABLERS OF
 ELECTRICITY  USED  AS  TRANSPORTATION FUEL, "CARBON INTENSITY" MEANS THE
 QUANTITY OF LIFECYCLE GREENHOUSE GAS EMISSIONS PER UNIT OF FUEL  ENERGY,
 AND  "FULL  FUELS LIFECYCLE" MEANS THE AGGREGATE OF GREENHOUSE GAS EMIS-
 SIONS, INCLUDING DIRECT EMISSIONS AND  SIGNIFICANT  INDIRECT  EMISSIONS,
 SUCH AS SIGNIFICANT EMISSIONS FROM LAND USE CHANGES AS DETERMINED BY THE
 COMMISSIONER.  THE  FULL FUELS LIFECYCLE INCLUDES ALL STAGES OF FUEL AND
 FEEDSTOCK PRODUCTION AND  DISTRIBUTION,  FROM  FEEDSTOCK  GENERATION  OR
 EXTRACTION THROUGH THE DISTRIBUTION AND DELIVERY AND USE OF THE FINISHED
 FUEL  BY  THE  ULTIMATE  CONSUMER.  IN  CALCULATING FULL FUELS LIFECYCLE
 GREENHOUSE GAS EMISSIONS, THE MASS  VALUES  FOR  ALL  NON-CARBON-DIOXIDE
 GREENHOUSE  GASES  MUST BE ADJUSTED TO ACCOUNT FOR THEIR RELATIVE GLOBAL
 WARMING POTENTIALS. THIS  CONVERSION  SHALL  USE  THE  MOST  APPROPRIATE
 CONVERSION  RELATIVE  TO  GLOBAL WARMING POTENTIALS AS DETERMINED BY THE
 COMMISSIONER BASED ON THE BEST AVAILABLE SCIENCE.
   (3) WITHIN TWENTY-FOUR MONTHS FOLLOWING ADOPTION  OF  THE  CLEAN  FUEL
 STANDARD,  THE  COMMISSIONER,  IN  CONSULTATION  WITH THE NEW YORK STATE
 ENERGY RESEARCH AND DEVELOPMENT AUTHORITY, SHALL PROMULGATE  REGULATIONS
 ESTABLISHING A CLEAN FUEL STANDARD WITH PERFORMANCE OBJECTIVES TO IMPLE-
 MENT  SUBDIVISION  ONE  OF  THIS SECTION. SUCH REGULATIONS MAY BE PHASED
 INTO EFFECT GIVING PRIORITY  TO  THE  HEAVY-DUTY  TRANSPORTATION  SECTOR
 CONSISTING OF VEHICLES WITH THE CLASSIFICATION OF SIX OR HIGHER AS CLAS-
 SIFIED  BY  THE  FEDERAL HIGHWAY ADMINISTRATION. THE CLEAN FUEL STANDARD

 A. 862--A                           3
 
 SHALL TAKE INTO CONSIDERATION THE LOW CARBON FUEL  STANDARD  ADOPTED  IN
 CALIFORNIA  AND  OTHER  STATES,  MAY  RELY  UPON THE CARBON INTENSITY OF
 VALUES ESTABLISHED FOR TRANSPORTATION FUELS IN  SUCH  STATES  AND  SHALL
 INCLUDE  COORDINATION WITH OTHER NORTHEASTERN STATES TO PROMOTE REGIONAL
 REDUCTIONS IN GREENHOUSE GAS EMISSIONS.
   (4) THE REGULATIONS ADOPTED PURSUANT TO  THIS  SECTION  SHALL  INCLUDE
 FEES  FOR  THE  REGISTRATION OF PROVIDERS TO OFFSET THE COSTS ASSOCIATED
 WITH IMPLEMENTATION OF THE CLEAN FUEL STANDARD.
   (5) WITHIN TWENTY-FOUR MONTHS FOLLOWING THE  ADOPTION  OF  REGULATIONS
 IMPLEMENTING A CLEAN FUEL STANDARD, THE COMMISSIONER SHALL REPORT TO THE
 LEGISLATURE  REGARDING THE IMPLEMENTATION OF THE PROGRAM, THE REDUCTIONS
 IN GREENHOUSE GAS EMISSIONS THAT HAVE BEEN ACHIEVED  THROUGH  THE  CLEAN
 FUEL  STANDARD AND TARGETS FOR FUTURE REDUCTIONS IN GREENHOUSE GAS EMIS-
 SIONS FROM THE TRANSPORTATION SECTOR.
   (6) NOTHING IN THIS SECTION SHALL PRECLUDE THE DEPARTMENT FROM  ENACT-
 ING  OR  MAINTAINING  OTHER  PROGRAMS TO REDUCE GREENHOUSE GAS EMISSIONS
 FROM THE TRANSPORTATION SECTOR.
   § 4. This act shall take effect immediately.